Lao PDR: Sustainable Rural Infrastructure and Watershed Management Sector Project

Resettlement and Ethnic Group Development Framework

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

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

CURRENCY EQUIVALENTS (as of 1 June 2019) Currency unit – kip (KN) KN1.00 = $0.000116 $1.00 = KN8,644

ABBREVIATIONS and ACRONYMS

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

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

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WEIGHTS AND MEASURES

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

NOTE

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

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

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

CONTENTS

I. INTRODUCTION ...... 1 II. PROJECT DESCRIPTION ...... 1 III. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS ...... 4 A. Rationale for a Combined Resettlement and Ethnic Group Development Framework .. 4 B. Rationale for Community Participation Framework (CPF) ...... 5 C. Guiding Principles of CPF ...... 5 IV. POLICY FRAMEWORK...... 6 A. Asian Development Bank Social Safeguard Policy (2009) ...... 6 1. Land Acquisition and Resettlement ...... 7 2. Indigenous Peoples Safeguards ...... 8 3. Gender ...... 10 4. Other Relevant ADB Policies ...... 10 B. Lao Policies, Laws and Regulations ...... 11 1. Resettlement and Land Acquisition...... 11 2. Ethnic Groups ...... 11 3. National Economic and Social Development Plan ...... 12 4. Lao Women’s Union ...... 12 5. National Committee for the Advancement of Women ...... 12 6. Governance - Sam Sang ...... 13 7. Decree on the Criteria for Poverty Graduation and Development ...... 13 C. Reconciliation of Government and ADB Safeguard Policies ...... 13 V. SRIWSM STRUCTURE ...... 17 A. ADB Sector Modality ...... 17 B. Subproject Selection ...... 18 C. Representative Subprojects for Detailed Design...... 21 1. Nam Seng Subproject - Luang Prabang ...... 21 2. Nam Phieng – Xayaboury Province ...... 23 3. Nam Tong – Xiengkhouang Province ...... 25 4. Nam Poua - Houaphan ...... 28 VI. RESETTLEMENT IMPACTS ...... 30 A. Scope and Nature of Impact ...... 30 B. Mitigation of Land Acquisition and Ethnic Group Concerns ...... 31 VII. INDIGENOUS PEOPLES CATEGORIZATION ...... 32 A. Ethnic Group Screening ...... 32 B. Ethnic Group Development Special Measures ...... 32 VIII. PROJECT RESETTLEMENT PRINCIPLES AND OBJECTIVES ...... 35 A. Objectives ...... 35 B. Land Acquisition ...... 35 1. Land donation ...... 35 2. Compensation Principles ...... 40

3. Eligibility, Cut Off Date and Entitlement ...... 41 4. Project Affected Persons ...... 41 5. Project Impacts and Entitlements ...... 42 6. Temporary Loss of Agricultural, Residential or Commercial Land ...... 42 7. Permanent Loss of Agricultural, Residential or Commercial Land ...... 43 8. Loss of Houses and Structures ...... 44 9. Loss of Crops and Trees ...... 44 10. Loss of Common Property Resources ...... 44 11. Materials Transport and Transition Subsistence Allowance ...... 44 IX. RESETTLEMENT PLANNING AND IMPLEMENTATION ...... 45 A. Preliminary Design Phase ...... 45 1. Screening ...... 45 2. Infrastructure Planning and Design ...... 46 3. Community Consultations ...... 46 4. Social Impact Assessment ...... 51 B. Detailed Design Phase ...... 51 1. Socio-economic survey of affected households (SESAH) ...... 51 2. Detailed Measurement Study...... 52 3. Due Diligence for Voluntary Land Donation ...... 53 4. Consultations after Detailed Design ...... 55 X. LARP IMPLEMENTATION PROCESS ...... 55 A. Consultation, Participation and Disclosure...... 56 B. Principles to Apply...... 56 C. Entitlements ...... 57 D. Grievance Redress Mechanisms ...... 62 E. Implementation Arrangements ...... 64 F. Implementation Schedule ...... 65 XI. RESETTLEMENT/COMPENSATION BUDGET ...... 66 1. Cash Compensation via Bank Transfer ...... 66 2. Compensation Payment via In-kind Compensation ...... 67 B. Staffing Requirements and Budget ...... 68 XII. SUPERVISION, MONITORING AND EVALUATION ...... 68 A. Internal Monitoring...... 68 B. External Monitoring...... 69 XIII. LARP AUDIT ...... 69

Tables Table 1: Reconciliation of ADB and GoL Land Acquisition Resettlement Policy Gaps ...... 14 Table 2: Subproject Eligibility Criteria ...... 18 Table 3: SP Short List ...... 20 Table 4: Anticipated Impacts ...... 31 Table 5: ADB SPS IP Characteristics ...... 32 Table 6: EGDF Elements ...... 33 Table 7: Criteria and Guidance Notes on Land Donation ...... 37 Table 8: Stakeholder / Community Participation Plan ...... 46 Table 9: Surveys for Resettlement Planning ...... 50 Table 10: Entitlement Matrix ...... 58 Table 11: Grievance Redress Mechanism Procedure ...... 63 Table 12: Estimated Resettlement Budget ...... 67 Table 13: Estimated EGDF Budget ...... 68

Figures

Figure 1: Nam Seng Satellite image showing Head Works...... 23 Figure 2: Nam Phieng Command Area and Villages ...... 25 Figure 3: Nam Tong Command Area and Distribution Network ...... 28 Figure 4: Nam Poua Command Areas ...... 30 Figure 5: Flowchart on compensation options ...... 39

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

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

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

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

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

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

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

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

I. INTRODUCTION

1. A combined Land Acquisition, Resettlement and Ethnic Group Development Framework will be used for the management of social safeguards within the proposed Sustainable Rural Infrastructure and Watershed Management Sector Project (SRIWSM). The SRIWSM will increase the profitability of the agriculture, natural resources and rural development sector by enhancing sustainable, market oriented agricultural production together with natural resources management. The project outputs will include: (i) Irrigated and upland farmers with income increased from high value crops (HVC) and livestock; (ii) Productive rural infrastructure (PRI) Catchment Watershed Ecological Services Protected; (iii) PRI upgrade to be climate resilient, efficient, and sustainable; and (iv) Improved nutrition of targeted PRI communities. A key assumption to project success will be the reduction of pressure in upper watershed areas through the provision of increased and reliable dry season cropping while providing direct income and livelihood benefits to farmers.

2. The Asian Development Bank (ADB) Safeguard Policy Statement (SPS) 2009 categorizes proposed projects depending on the significance of potential impacts on land acquisition and resettlement (LAR), and Indigenous Peoples (IP):

i) Category A. A proposed project is classified as category A if it is likely to have significant impacts on LAR and or IP. If so, a land Acquisition and Resettlement Plan (LARP) and an Indigenous Peoples Plan (IPP), including assessment of social impacts, is required.

ii) Category B. A proposed project is classified as category B if it includes involuntary resettlement impacts that are not deemed significant on LAR, or only limited impacts on IPs. If so, a land Acquisition and Resettlement Plan (LARP) and an Indigenous Peoples Plan (IPP), including assessment of social impacts, is required including assessment of social impacts, is required.

iii) Category C. A proposed project is classified as category C if it is not expected to have impacts on LAR and or IP. If so, a due diligence report to verify this is required.

3. The ADB and Government of Lao PDR has agreed that only category B and C subprojects are eligible for inclusion. Based on subproject scoping and screening, the SRIWSM has been assessed as Category B for Land Acquisition and Resettlement (LAR), with limited impacts envisaged; and Category B for Indigenous Peoples (IPs) to ensure the participation and equal benefit sharing of EG in which a combined RF and Indigenous People Framework, herein identified as an Resettlement and Ethnic Group Development Framework (REGDF).

II. PROJECT DESCRIPTION

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

5. The rural population uses agriculture as part of the rural household income (ranges from less than 30% to over 70%) with the irrigation command areas playing a significant role in household food security through the wet season rice crop. For these irrigation schemes upstream

2 watershed health is critical for sustaining agricultural production. Livelihood practices by people living upstream of PRIs are often directly or indirectly linked to the irrigation command areas with the downstream consequences of land use on the future irrigation scheme sustainability being increasingly important. More secure land ownership rights for farmers is an essential input for better land stewardship both within the farmed irrigated areas and the wider watershed.

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

7. The project will have the following outputs:

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

9. Output 2: Watershed ecological services protected. The output will enhance watershed management in Xiengkhouang province. The project will support the updating or completion of participatory land use plans in the catchments and their actual implementation. A representative subproject within the Nam Tong, Xiengkhouang subproject catchment has identified five investments in the catchment based on the PLUP and will require community agreements in advance of investment and will provide land titles to income generation linked to irrigation, tea production and fodder land.

10. The participatory land use plan of the community (23 households) includes focusing on high productive agriculture in specific locations and thereby releasing 841 ha of land from its current low productive use to protection forest. Currently, there is 286 ha of land allocated for rotational upland annual cropping. Current use is limited to only five households that have inadequate rainfed rice to enable food security. The SRIWSM seeks to work with the village and these five households to provide alternative food security. These five households hold land in the 21 ha riparian-based irrigation schemes. The project will provide support for their land to be converted to irrigated paddy fields to offset the retirement of rotation annual upland cropping as well as participate in the forest tea development. Each of the five households will get a fair share of the 45 ha of forest tea development to enhance their cash incomes (actual land plots will be allocated during the PLUP Process with land titles provided). Both the irrigated paddy fields and the tea plantation land plots will be titled. The 286 ha of land assigned for rotational upland annual cropping will be turned into conservation forest or village protection forest categories to improve the water shed quality.

11. 555 ha of village forest land is currently used for free ranging cattle grazing which will be turned into conservation forest or village protection forest categories by developing a total of 260

3 ha of grazing fodder land. The positive effect of improved fodder land for cattle raising is already demonstrated by the village chief who raises his cattle using the “cattle fattening” approach.

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

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

14. Output 4: Nutrition awareness and facilities improved. The project will support up to 104 villages under the wider government nutrition support program to address stunting and wasting rates. The support will upscale recently piloted programs in Xiengkhouang and Houaphan Provinces and will develop district nutrition committees, village nutrition schools and provide capacity to institutionalize nutritional knowledge at Provincial, District, and village levels. The project will also implement WASH infrastructure in PRI communities, schools and markets.

15. Of the four outputs, the upgrading of PRI (Output 3) will entail land and asset acquisition. This loss will be mitigated by access to improved irrigation through the ability to produce irrigated high value crops during the dry season with complementary increases in the wet season rice crop yields (15% to 22% yield increases), transitional allowances and by compensation for any losses in line with the entitlement matrix. A community participation framework is imbedded in the Resettlement and Ethnic Group Development Framework (REGDF) as a guide for land acquisition with minimal impacts (equal to or less than 9% of land plot affected) with the option of donation, negotiated settlement or realignment of canals. The REGDF applies to land plots that have impacts of over 9% wherein AHs are provided compensation according to the entitlement matrix and to those AHH who land plot is impacted less than 9% who choose to not use the community participation framework. Compensation for non-land assets and allowances are provided to all eligible AHs for both frameworks.

16. Wherever possible, rehabilitation of the irrigation systems will occur within existing footprints. In the case of new construction, or extension of existing footprints (i.e., widening) site selection will retain sufficient flexibility to avoid involuntary resettlement or significant land acquisition issues. At these sites, all canals, roads, pipes or other conveyance alignments will be determined by physical condition; but all efforts will be made to minimize the need for any land acquisition, and avoid any resettlement, or physical and economic displacement.

17. Voluntary land donation may be used (within described conditions) if these activities require privately used or owned land. Voluntary land donation may only be used where impacts are less than 9% of the land plot 2 affected by the project. Eminent domain will not occur in the

2 OM F1/OP States that significant impacts are when HHs lose 10% or more of their productive assets (income generating). For the purposes of this project, as agreed upon with DOI and ADB, productive assets (income generating) is identified as the affected plot of land. This is based on the conducted due diligence and in order to limit the transfer of risk to affected HHs. A plot size is relatively easy to define, measure and verify. To quantify all productivity of different assets (fallow land used for grazing during the dry season, households collecting plants and

4 event negotiations fail. Full oversight of the donation and negotiated settlement process will be in place. In the preparation stage, the alignment of the proposed canals was finalized through extensive community consultations held within the communities that will benefit from the improved irrigation schemes.

18. Eminent domain shall be used if these activities require privately used or owned land affected more than 9% of the land plot affected by the project and for vulnerable households.

19. The project will be financed by two donors, ADB and the European Union (EU), through blended co-financing. ADB financing will mostly support output 3 for irrigation infrastructure. In addition, ADB will support investment in output 1 – market linkages for the four representative subprojects, output 3 water user group strengthening for all four representative subprojects prepared by the TRTA consultants, and the WASH infrastructure under output 4. Output 2 will be financed by ADB in Xiengkhouang and Hopuaphan provinces with the remaining provinces being financed under a proposed GIZ project (using Green Climate Funds) that will finance the climate change mitigation activities in the upper watersheds as part of the wider World Bank Emission Reduction (except Xiengkhouang Province).

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

III. OBJECTIVES, POLICY FRAMEWORK AND ENTITLEMENTS

A. Rationale for a Combined Resettlement and Ethnic Group Development Framework 21. The Resettlement and Ethnic Group Development Framework (REGDF) reflects the requirements of the ADB’s Safeguards Policy Statement (2009) and government policies on resettlement and ethnic groups (EGs).3 The framework provides the procedures and key principles of involuntary resettlement and ethnic group development that will guide the preparation and implementation of subprojects resettlement and ethnic group development plans, consistent with the Asian Development Bank’s (ADB) policy requirements and legal framework of the Lao Government, for all subprojects to be supported by the proposed project.

22. The framework details entitlements and modes of compensation, participation and consultation procedures, and grievance redress mechanisms, that will be employed to compensate affected persons and/or assist them through the process of resettlement, as well as provide assistance and support to EGs in project areas, enabling them to attain an equivalent or

small animals and mushrooms on fallow land during the dry season) is a massive undertaking that requires significant resources and specialized skills. Based on experience, the cost of conducting such detailed survey is far greater than the compensation budget included in the REDGF. 3 The Government. of Laos does not approve use of the terms Indigenous People or Ethnic Minorities, preferring instead to use the term Ethnic Groups.

5 better living standard than they had before the project. The proposed SRIWSM will be bound by the principles and conditions stated in this REGDF as approved by ADB and the government.

23. It is acknowledged that some of the EG households in the project areas necessitate special measures that are specified in this REGDF. These measures will ensure EG households understand the project, interventions and benefits and how project inclusion, consultation, and participation mechanisms operate to result in fair and equitable benefit sharing during implementation. Under category B, as each subproject (SP) is prepared for approval, particular issues relevant to this group will be set out within the LARP or a combined Land Acquisition and Ethnic Group Development Plan.

B. Rationale for Community Participation Framework (CPF) 24. The activities of the proposed project are limited to the rehabilitation and / or expansion of existing irrigation schemes and their access roads alongside the canals (including bridges) to improve market access. Inclusion of schemes in the project is subject to HH level benefits with demonstrated strong support and desire from the community to participate. This is a central tenant of the project design.

25. As the subprojects are in communities that already have irrigation schemes, there is a strong community-led desire to expand the schemes and capacity to manage the expansion effectively.

26. Voluntary land donation may be used (within described conditions) if these activities require privately used or owned land. Voluntary land donation may only be used where impacts are equal to or less than 9% of the land plot affected by the project. Eminent domain will not occur in the event negotiations fail. Full oversight of the donation and negotiated settlement process will be in place.

27. Compensation for non-land assets and allowances are provided to all eligible AHs for both the CPF as well as the Resettlement Framework.

28. This framework has been prepared based on the review of the relevant national legislation and policies of Government of Lao PDR and the ADB SPS (2009).

C. Guiding Principles of Community Participation Framework 29. The principles guiding the community participation framework are the following:

• That there is meaningful consultation with landowners and any non-titled people on proposed irrigation and access road improvements; • Voluntary donations will not severely affect the living standards of affected people and are directly linked to measurable benefits; • Assets such as trees or structures cannot be donated. • Residential land cannot be donated • Any voluntary donation will be confirmed through verbal (consultations) and written record and verified by an independent third party; • An effective local level project-specific grievance redress mechanism (GRM) is in place, starting at the village level; • The project benefits will realistically offset the lost production of the donated land; • Up to 9% of the affected land plot can be donated for the project • Where a household who loses 9% or less of the affected land plot, requires compensation, a negotiated settlement will occur.

• Negotiated settlement shall be at full replacement cost or higher. • In the event that negotiations fail, a realignment of the canal shall be required. • In the event that voluntary land donation/negotiated settlement does not occur, eminent domain or other powers of the state will not be used; • . • Vulnerable households are not eligible for donation, regardless of type of vulnerability or category of loss • Households retain the right to compensation for any losses unless they waive their rights to do so by voluntarily donating land, conditional to meeting the above criteria. 30. Voluntary land donation is not within the scope of the ADB Safeguard Policy Statement. However, land donation will be acceptable on a voluntary basis, where households have made an internal decision and where persons donating are not significantly impacted within the abovementioned criteria and guidelines. Due diligence and meaningful consultation will be conducted to verify that the donation is in fact voluntary and did not result from coercion, using written records and confirmation through an independent third party.

31. The steps for voluntary land donation are as follows:

(i) Disseminate information to all relevant stakeholders on project information; (ii) Present and discuss individual entitlements, compensation and land donation concept; (iii) Establish a list of HHs who qualify within the established criteria to donate land and identify those HHs who express the intent to donate land and those that want compensation; (iv) Households that require compensation are to engage in negotiated settlements; (v) Identification and verification of ownership/use of the land to be donated through screening and survey, including percentage loss; (vi) Raising awareness and undertake meaningful consultation and negotiation with displaced persons; (vii) Obtain signed agreements and provide cash or in-kind compensation for negotiated settlements; (viii) Provide documentation for realignment in the event that negotiated settlement fails; (ix) Obtain signed agreement for land donation; and (x) Provide and updated land title for the remaining land plot; and (xi) Verification and monitoring by external monitor (ongoing).

IV. POLICY FRAMEWORK

A. Asian Development Bank Social Safeguard Policy (2009) 32. The ADB Safeguard Policy Statement (2009) consolidates three existing safeguard policies: involuntary resettlement, indigenous peoples, and environment. The objectives of the involuntary resettlement safeguards are: (i) to avoid involuntary resettlement wherever possible; (ii) to minimize involuntary resettlement by exploring project and design alternatives; (iii) to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and, (iv) to improve the standards of living of the displaced poor and other vulnerable groups.

33. The objectives of the Indigenous Peoples’ safeguards are to design and implement projects in a way that fosters full respect for Indigenous Peoples’ identity, dignity, human rights,

7 livelihood systems, and cultural uniqueness as defined by the Indigenous Peoples themselves so that they (i) receive culturally appropriate social and economic benefits; (ii) do not suffer adverse impacts as a result of projects; and (iii) can participate actively in projects that affect them.

34. ADB SPS (2009) applies to all ADB-financed and/or ADB-administered sovereign and non- sovereign projects, and their components regardless of the source of financing including resettlement actions conducted by the borrower/client in anticipation of ADB support.

35. For projects/subprojects involving facilities and/or business activities that already exist or are under construction, the borrower is required to undertake an environment and/or social compliance audit, including on-site assessment, to identify past or present concerns related to impacts on the environment, involuntary resettlement, and indigenous peoples. The audit should determine whether actions were in accordance with ADB’s safeguards principles and requirements and identify and plan appropriate measures to address outstanding compliance issues. Where noncompliance is identified, a corrective action plan agreed on by ADB and the borrower will be prepared and followed.

36. For projects/subprojects proposed for ADB financing, ADB is required to conduct safeguard reviews, including reviews of the borrower’s/client’s safeguard documents, as part of its overall due diligence. Such due diligence and review involve field visits as well as desk reviews to (i) confirm that key impacts and risks have been identified; (ii) ensure effective measures to avoid/minimize/ mitigate/compensate for the adverse impacts are incorporated into the safeguard plans and project designs; (iii) ensure that the borrower understands ADB safeguard policy principles and requirements and has adequate capacity and commitment; (iv) ensure the roles of third parties are appropriately defined in the plans; and (v) ensure meaningful consultations with displaced persons have been conducted.

1. Land Acquisition and Resettlement 37. Involuntary resettlement covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land; or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas regardless of whether such losses and involuntary restrictions are full or partial, permanent or temporary.

38. Projects financed and/or administered by ADB are expected to observe the following policy principles:

(i) Screen early to identify involuntary resettlement impacts and risks and determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with displaced persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options and ensure their participation in various stages of the project especially vulnerable and poor groups. Establish a grievance redress mechanism to receive and facilitate resolution of the displaced persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. (iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation, assistance at replacement value for land when the

loss of land does not undermine livelihoods; (ii) prompt replacement of assets with access to assets of equal or higher value; (iii) prompt compensation, assistance at full replacement cost for assets that cannot be restored; and (iv) additional revenues and services through benefit sharing schemes where possible. (iv) Provide displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to replacement land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women headed households, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter negotiated settlements will maintain the same or better income and livelihood status. (vii) Ensure that affected people (APs) without title to land, or any recognizable legal rights to land, when the project is assessed to cause adverse impacts, are eligible for resettlement assistance and compensation for loss of non-land assets. (viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose both the draft and final resettlement plan in a form and language understandable to displaced persons and other stakeholders. (x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by considering the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. 2. Indigenous Peoples Safeguards 39. The Indigenous Peoples’ safeguards are triggered when a subproject directly or indirectly affects the dignity, human rights, livelihood systems, or culture of indigenous peoples or affects the territories or natural or cultural resources that indigenous peoples own, use, occupy, or claim as an ancestral domain or asset.

40. The term indigenous peoples is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: (i) self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; (ii) collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and (iv) a distinct language, often different from the official language of the country or region. In considering these characteristics, national legislation, customary law, and any international conventions to which the country is a party will be taken into account.

41. A group that has lost collective attachment to geographically distinct habitats or ancestral territories in the project area because of forced severance remains eligible for coverage under this policy. Projects financed and/or administered by ADB are expected to observe the following policy principles related to indigenous people:

(i) Screen early on to determine (i) whether indigenous peoples are present in, or have collective attachment to, the project area; and (ii) whether project impacts on indigenous peoples are likely. (ii) Undertake a culturally appropriate and gender-sensitive social impact assessment or use similar methods to assess potential project impacts, both positive and adverse, on indigenous peoples. Give full consideration to options the affected indigenous peoples prefer in relation to the provision of project benefits and the design of mitigation measures. Identify social and economic benefits for affected indigenous peoples that are culturally appropriate and gender and inter-generationally inclusive and develop measures to avoid, minimize, and/or mitigate adverse impacts on indigenous peoples. (iii) Undertake meaningful consultations with affected indigenous peoples communities and concerned indigenous peoples organizations to solicit their participation (i) in designing, implementing, and monitoring measures to avoid adverse impacts or, when avoidance is not possible, to minimize, mitigate, or compensate for such effects; and (ii) in tailoring project benefits for affected indigenous peoples communities in a culturally appropriate manner. To enhance indigenous peoples’ active participation, projects affecting them will provide for culturally appropriate and gender inclusive capacity development. Establish a culturally appropriate and gender inclusive grievance mechanism to receive and facilitate resolution of the indigenous peoples’ concerns. (iv) Obtain the consent of affected indigenous peoples communities to the following project activities: (i) commercial development of the cultural resources and knowledge of indigenous peoples; (ii) physical displacement from traditional or customary lands; and (iii) commercial development of natural resources within customary lands under use that would impact the livelihoods or the cultural, ceremonial, or spiritual uses that define the identity and community of indigenous peoples. (v) Avoid, to the maximum extent possible, any restricted access to and physical displacement from protected areas and natural resources. Where avoidance is not possible, ensure that the affected indigenous peoples communities participate in the design, implementation, and monitoring and evaluation of management arrangements for such areas and natural resources and that their benefits are equitably shared.

(vi) Prepare an IPP that is based on the social impact assessment with the assistance of qualified and experienced experts and that draw on indigenous knowledge and participation by the affected indigenous peoples communities. The IPP includes a framework for continued consultation with the affected indigenous peoples communities during project implementation; specifies measures to ensure that indigenous peoples receive culturally appropriate benefits; identifies measures to avoid, minimize, mitigate, or compensate for any adverse project impacts; and includes culturally appropriate grievance procedures, monitoring and evaluation arrangements, and a budget and time-bound actions for implementing the planned measures. (vii) Disclose a draft IPP, including documentation of the consultation process and the results of the social impact assessment in a timely manner, before project appraisal, in an accessible place and in a form and language(s) understandable to affected indigenous peoples communities and other stakeholders. The final IPP and its updates will also be disclosed to the affected indigenous peoples communities and other stakeholders. (viii) Prepare an action plan for legal recognition of customary rights to lands and territories or ancestral domains when the project involves (i) activities that are contingent on establishing legally recognized rights to lands and territories that indigenous peoples have traditionally owned or customarily used or occupied, or (ii) involuntary acquisition of such lands. (ix) Monitor implementation of the IPP using qualified and experienced experts; adopt a participatory monitoring approach, wherever possible; and assess whether the IPP’s objective and desired outcome have been achieved, taking into account the baseline conditions and the results of IPP monitoring. Disclose monitoring reports. 3. Gender 42. ADB’s Policy on Gender and Development (2003) adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate in project design, planning, decision making and benefit sharing, and that their needs are explicitly addressed in the project decision-making process. A gender analysis was part of the social economic data collection process of the TRTA, and a gender action plan (GAP) has been formulated for the project. These will provide the basis for further gender action plans developed following feasibility studies of the remaining subprojects.

4. Other Relevant ADB Policies 43. Other policies of ADB that have a bearing on resettlement planning and implementation are: (i) Public Communications Policy (2011) and the Operations Manual Section L3/BP (2012); and (ii) Accountability Mechanism (Operations Manual Section L1/BP, dated 29 October 2012). Following these requirements, the Project Governance Team (PGT) and provincial project offices (PPOs) are required to share and disclose project information with stakeholders and the public at large. APs should have easy access to project information. The EA is also required to provide access for people adversely affected by the proposed Project to voice and seek solutions to their problems during and after resettlement. The Grievance Redress Mechanism (GRM), therefore, must be included in the LARPs and disclosed to the APs.

B. Lao Policies, Laws and Regulations 1. Resettlement and Land Acquisition 44. In this REGDF reference is made to the laws of the Govt. of Laos including the Constitution (1991 and amended in 2015), the Road Law (1999), the Land Law (2008) relating to resettlement and land acquisition, Decree 88 on the implementation of the land law and in particular, Decree 84, “Decree on Compensation and Resettlement Management in Development Projects”, dated 5 April 2016 (which replaces the National Resettlement Policy Decree No 192/PM dated 7 July, 2005). The new decree maintains general alignment with the ADB SPS. Provisions contained in earlier regulations, such as the Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Projects (No.2432/STEA, dated 11 November 2005), and Decree No 699/PMO - Water Resources and Environmental Agency (WREA) dated 12 March 2010, on Compensation and Resettlement of the Development Project (Improved), that contradict the new Decree 84 are repealed. In general, the main principles of the government policies on land acquisition, compensation, assistance and resettlement reflect those set out in ADB’s SPS (2009), apart from those indicated in the Policy Gap table - represented below. The most significant difference being the definition of severely affected households who are adversely affected. The new Decree 84 does not specify the extent of loss, whereas Decree 192 specified a loss of 20% or more of productive assets as the trigger. The ADB trigger is 10% and this will prevail for all sub-projects.

45. The Govt. of Laos regulations seek to ensure participation, consultation and consensus, as well as fully restore and improve livelihoods and minimize all disruption to communities. The regulations provide for full market value replacement cost, transparency, implementation of the compensation and mitigation action prior to commencing the project and also provide that a Grievance Resolution Mechanism must be disclosed.

2. Ethnic Groups 46. In Lao PDR, there are 49 ethnic groups officially recognized by the Government that are categorized into four ethno-linguistic families4; the Lao Tai ethnic majority accounts for 62.4% of the total population, the Mon Khmer group 23.7%, the Hmong Mien 9.7%, and the China Tibet group 2.9%.5 Attachment 6 to this document provides an overall review of EGs in Laos.

47. The lead government agency in relation to ethnic groups is the Lao Front for National Construction (LNF), Department of Ethnic Affairs. Article 8 of the Constitution proclaims that “the State pursues the policy of promoting unity and equality among all ethnic groups. All ethnic groups have the rights to protect, preserve and promote the fine customs and cultures of their own tribes and of the nation. All acts of creating division and discrimination among ethnic groups are forbidden, and the State must implement measures to gradually develop and upgrade the economic and social level of all ethnic groups”. Article 75 of the Constitution specifically indicates that the Lao language and script are the official national language and script.

48. Party policy relating to ethnic minorities remains relatively unchanged from that announced by Party Central in 1992,6 which identified three essential tasks for ethnic group development:

4 The actual number of ethnic groups may be as high as 236 depending on the level of classification used in regards to groups and subgroups within the main ethno-linguistic families (Chamberlain et. al.1996). 5 2015 National Population and Housing Census, LNSC (2016).. 6 Contained within the Resolution of the Party Central Organization Concerning Ethnic Minority Affairs in the New Era (Government of Lao PDR, 1992).

(i) strengthening political foundations, strengthening national (Lao) identity and equality between ethnic groups; (ii) increasing production and opening of channels of distribution in order to convert subsistence-based economics towards market-based economics; and, (iii) expanding coverage of education, health and other social benefits for ethnic groups.

3. National Economic and Social Development Plan 49. The draft 8th National Economic and Social Development Plan (NESDP),7 which runs from 2016 until 2020 refers to ethnic minority development under Output 2, where poverty reduction of the ethnic minorities is “linked to the building of developed villages, to agglomerate big villages into small towns in rural areas linked to productions in the local regions and territories, to resettle the people by allocating new places to stay and permanent professions in priority manner, to pursue the people’s poverty reduction by promoting commercial production and services according to their respective local potential”.

4. Lao Women’s Union 50. The Lao Women’s Union (LWU) was originally established in 1955 to mobilize women for the Lao People’s Revolutionary Party. In 1991, the LWU was recognized under the Constitution of Lao PDR. Although not established specifically for ethnic groups, the LWU is mandated to represent women of all ethnic groups and to protect women’s rights and interests, mobilize and increase women’s involvement in national development.

51. The LWU is under the Party’s Central Committee and plays a key role in the development of Lao government policies in regards to women and in national development. The LWU structure is represented in all ministries and reaches down to village level (including ethnic group villages) and has responsibility for responding to women’s development needs; promoting the status and role of women; and, promoting unity amongst women of different ethnic groups and social strata throughout the country. The LWU at provincial and district level is very active in livelihood development and health activities in villages. The LWU organization is often included as an implementation partner in many projects due to its already extensive network in rural communities.

52. On 20 January 2015, the United Nations Human Rights Council met in Geneva, Switzerland to examine Laos’s human rights record through the universal periodic review process.6 On 23 June 2015, Laos accepted 118 of the 196 universal periodic review recommendations. These included recommendations from Cambodia on protection of the cultural rights and languages of indigenous peoples, and from Ghana on ensuring that all ethnic groups are treated equally and have equal access to social services, including health and education.

5. National Committee for the Advancement of Women 53. The National Committee for the Advancement of Women (NCAW) was established under Prime Minister’s Decree No. 37/PMO, dated 1 April 2003, and is tasked with implementing the National Strategy for the Advancement of Women which outlines gender related goals and targets for each sector, and has established a basic structure in each ministry comprising the Government of Lao PDR. NCAW’s mandate is to support SubCAW networks in line ministries for the advancement of women and to integrate gender into the planning, budgeting and monitoring and evaluation (M&E) cycle of line ministries. NCAW plays a lead role in coordination of gender

7 Government of Lao PDR, Ministry of Planning and Investment. NSDP 2011-2015: Targets for 2015. Vientiane.

13 development both internally and with international partners. The NCAW, through its SubCAW network, also has responsibility as the main focal point for CEDAW8 and Child Convention9 work within the Government of Lao PDR.

54. The National Strategy for the Advancement of Women contains specific targets focused on women’s representation and participation, both in private and public organizations. These targets include: improved data disaggregation by sex, the eradication of all discrimination against women, increase the percentage of women in leadership and decision making positions from 25% to 30%, increase women’s technical capacity and numbers of female technical officers annually, and to facilitate equal pay and conditions for women as men doing same work, ensuring gender equality and women’s empowerment to participate in all fields. The activities indicated under these programs are to be implemented through the SubCAW network within each line ministry, and the SubCAW network is being expanded to provincial and district levels.

6. Governance - Sam Sang 55. Although not specifically addressing LAR or ethnic groups, the Sam Sang policy is a governance decentralization initiative that passes more decision making down from the central level to the provincial, district and village levels. The Sam Sang decree (No.03/CPP) was issued on 15/2/2012. Amongst other things, the effect of the policy is reflected in the key role assigned to the Provincial Resettlement Committees under Decree 84 in the implementation of LARPs and estimating asset compensation.

7. Decree on the Criteria for Poverty Graduation and Development 56. The Prime Minister signed Decree 348/GOL on 16 November 2017. The decree defines the criteria for poverty graduation and development. It provides the basis for defining goals for poverty reduction. The Guideline 0830/MAF dated 06 April 2018; Guideline on the Implementation of the Decree on Poverty Graduation and Development Standards provides further enhancement on the understanding and implementing the Decree on Poverty Graduation and Development Standards throughout the country in a consensus manner.

C. Reconciliation of Government and ADB Safeguard Policies 57. There remain gaps between the ADB and the Government of Laos’ Policies on compensation, assistance and resettlement, and in respect of ethnic groups. The Govt. of Laos does not have an equivalent standalone IP policy. Where policy gaps exist between ADB and the government relating to LAR and IPs, the ADB’s SPS (2009) shall prevail.

58. Both Lao PDR law and ADB policies entitle impacted Affected Persons (APs) to compensation for affected land and non-land assets at replacement market cost. However, Government and ADB policy differ in the definition of severely affected APs. The ADB (Operational Manual Section F2 para. 5) definition sets a threshold of losing 10% or more of productive assets, while the Lao Government Decree 84 (replacing Decree 192) does not define any threshold (the previous decree indicated a 20% level of loss). Using a 10% threshold will be used which entitles all APs to economic rehabilitation assistance to ensure they are not worse off due to the proposed project. This is in line with ADB SPS to avoid, minimize, or mitigate adverse environmental and social impacts, including protecting the rights of those likely to be affected or marginalized by the development process.

8 Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), adopted in 1979 by the UN General Assembly. 9 United Nations Convention on the Rights of the Child, 1990.

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

Table 1: Reconciliation of ADB and Lao Government Land Acquisition Resettlement Policy Gaps Items with ADB Policy National Policy and Agreed Measures to Different Identified Gaps Close Gaps Policies Compensation Involuntary resettlement Irrigation Management for public / requirement applies for Transfer (IMT) is in place. When communal land is communal land involuntary restriction on land Decree 1150 on used on rotation basis as use or on access to legally Establishment and Operation agricultural land of AHs designated parks or protected of WUAs (2000) details that compensation for the lost areas. irrigation schemes ownership income for remaining is transferred to the WUG / period of turn for the AHHs Compensation for loss of community after construction. farming the land and income or livelihoods documented identification regardless of whether or not Also, based on Decree on the of replacement area to AHHs are physically Full Transfer of Irrigation compensation for location displaced for lost assets at full System to the Water Users for communal use. replacement cost (but not for Associations (No.1149/AF in land). 2000) the irrigation system constructed by the Government is transferred to WUA, WUG, Collective Enterprise and any other appropriate organization to manage and use it. MAF Decrees provides that WUA owns the system as a property as well as manage it. However, it can’t sell or lease the system and change the purpose of water use without permission from Financial Office/PAFO. Severely Being physically displaced Whereas Decree 192 Severely affected - Being Affected from housing; or losing 10% indicated a threshold losing physically displaced from Households or more of productive assets 20% or more of productive housing; and/or losing 10% (income generating) income generating assets or more of productive (loss of agricultural, industrial assets (income generating) or commercial land) and means of livelihood, employment or business, and

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

Absentee land owner households, who are

Items with ADB Policy National Policy and Agreed Measures to Different Identified Gaps Close Gaps Policies verifiably not reliant of the productive land lost to the project, are not regarded as vulnerable households but are eligible for lost land compensation / cost of land.

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

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

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

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

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

V. SRIWSM STRUCTURE

A. ADB Sector Modality 60. The SRIWSM will be implemented using ADB sector modality which is based on conducting due diligence and feasibility assessment on a subset of project investments (subprojects) that are used to approve or revise the financing. These subsets of the subprojects are referred to as representative subprojects (RSP). The remaining subprojects are labelled as additional subprojects that will be designed and have due diligence undertaken during the implementation phase of the project. For SRIWSM a total of 4 RSPs were used for the feasibility work – one in each province. There is a maximum of 6 subprojects allowed per province to limit

18 the preparatory work required during implementation and reduce transaction costs. The six subprojects must be located in no more than 3 Districts.

B. Subproject Selection 61. Subproject identification for the initial long list was initiated through community demand where communities have made representations to district and provincial authorities to rehabilitate or improve the irrigation facility in order to gain dry season cropping potential. In some instances, these representations have extended back through time as part of the agreement when irrigation scheme operations and maintenance was “transferred” to water users under the expectation that larger or more complex maintenance or restorative works would be supported by Provincial investment in return for the water users sharing the irrigation service fees collected with provincial authorities. The widespread damage that results from depressions and storms has resulted in provincial budgets being inadequate for all such requests.

62. The resultant long list of proposed subprojects was then presented to ADB during project reconnaissance who agreed with government the criteria for prioritizing subprojects for their inclusion in the project – see Table 2. During the inception phase priority subprojects for each province were visited and screened against these criteria during which the community engagement process commenced. During the screening meetings held with village leaders, water user association office holders and water user group members were often completed with joint transect walks. The project and its positive and negative impacts were explained to the community in order to obtain feedback and confirm that the project interventions are “demanded”.

63. Additional technical criteria for screening and selecting subprojects and/or components must also be applied and these are indicated in the table below, and these are in addition to the key guiding principle of the potential for increased and diversified dry season cropping. Subproject eligibility criteria preclude any candidate subprojects that will result in significant impacts (Category A) with regards to both LAR and EGs.

Table 2: Subproject Eligibility Criteria No. Eligibility Criteria 1. National Strategy. Be consistent with Government’s strategies and policies. 2. Socio-economic Relevance. Be consistent with medium and long-term socio-economic development plans at the provincial and district levels. 3. Effectiveness. Have relatively simple and logical designs within one continuous command area. 4. Safeguards Compliance. Comply with Government and ADB safeguard guidelines and involve a minimum of negative environmental, IP and resettlement impacts, i.e. only ADB Eligibility Criteria Eligibility Safeguard Category B or C will be considered.

Preference where works are maintained within existing footprint or right of way to minimize land acquisition costs to Government. 5 Location 1: Subprojects must be located in rural areas where the majority of beneficiaries are likely to be dependent upon agriculture for their livelihoods 6 Location 2: The subproject must not be located in any area where a major development,

such as a new hydropower scheme, a mine, major land concession, or a Special Economic Zone, is planned. 7 Commitment: There must be demonstrated local commitment to the subproject with confirmation by beneficiaries (inclusive of women and ethnic groups), participating kumbans, and district authorities. 8 Financial Scale: The estimated cost of the subprojects must be in the range of $0.7 to $2.0 million (with any exceptions specifically justified) 9 All proposed subprojects will include more than one type of PRI infrastructure

No. Eligibility Criteria 10 Social Conflict – no significant social conflict in the watershed that will delay investment 10 No Pumped schemes 11 Improved Resource Utilization. Prioritize the sustainability of assets through WUG or Provincial government to commit to support periodic maintenance through written assurance. Existing WUG operating, PAFOs/DAFOs to obtain written agreement of each stakeholder prior to the field visits. PRIORITISATION Ratings 1 Condition of Scheme. Ranging from: (i) upgrade 5 for upgrade with repairs and improvements; (ii) major repairs, 3 for major repair such as new headwall, sidewall; (iii) reconstruction 1 for reconstruction of a failed structure; and (iv) new construction. 0 for new construction Land use plan established. 3 for established and partially implemented 1 for established 2 Irrigation Command area >30ha – potential if 3 for >75ha, not effective 2 for 50 to 75ha and 1 for <50ha 3 Integrated Approach. Follow an integrated 3 for catchment and PRI (>3types) Prioritization development approach on rehabilitating existing 2 for catchment and PRI 1-3 types productive rural infrastructure to optimize 1 for other productivity and increase efficiency while ensuring improved sustainability through catchment management.

Criteria Catchment based risk to infrastructure linked to 3 for catchment with minimal catchment condition – extent of bare land or degradation deforestation 2 for land conversion

1 for significant deforestation 0 for major social conflicts 4 Improved Access to Markets. Be centered upon 3 within 20km of arterial irrigation systems, with road, trail and path 2 within 20 to 40km upgrading that lead to improved access within the 1 >40km command area and connect the command area and villages to the higher order road network. 5 Leveraging other investment. Potential to For complementary projects valued complement other ADB investment projects at: particularly livestock and tourism projects. 3 > $1M Demonstrable productivity gains identified 2 > $0.5M 1 > $0.1M 6 Water user group (WUG) established and 3 - have evolved to water user functioning association. 2 – WUG functioning 1 – WUG established but weak

64. The short list (see Table 3) consists of 16 subprojects, involving 90 villages, and about 5,701 households. In total the wet season command areas is approximately 3,840ha dropping to 1,819ha during the dry season. The total upstream watershed area encompasses 3,300 km2. The short list is indicative, the above figures provide a first estimate of the likely physical targets under the SRIWSM program, and the actual SPs selected for feasibility and implementation may change with further investigation. In May 2019, the ADB and DOI agreed to increase the number of subprojects from 16 to 18 and increase the loan amount accordingly. The two additional subprojects will be in Luang Prabang and Xayaboury. Selection of the additional 2 subprojects has not yet been finalized at the time of writing of this REGDF and information on them is therefore not

20 included in Table 3 below. All criteria listed in Table 2 and condition of this REGDF will apply to these additional two subprojects.

Table 3: SP Short List # Sub-Project Ra Villa HHs Catchm Cost. Est. WS DS Exp Incr. nk ge (#) ent ha ha (ha) DS (#) Area, crop ha. (ha) Houaphan

I Viengxay

Nam Poua (RSP) 1 6 275 19,650 640,000 69.89 36.2 55

II Sopbao 2 Nam Hom (1,2) 2 6 312 89,800 450,000 168 86 51 135

III Xamneua 3 Nam Harm (Big and Small 3 3 138 11,600 650,000 130 45 8 95 Area)

I Viengxay

4 Nam Soy (1,2,3) Standby 4 8 1031 56,200 1,200,000 184 127 50

Subtotal 23 1,756 177,250 2,940,000 552 294 59 335

Xiengkhouang

I Peak (RSP)

1 Nam Tong (2,3) (RSP) 1 2 116 4,700 800,000 147 28 150

II Kham

2,3 Nam Pew (1,2,3) 2 3 161 14,300 700,000 214 72 150 ,4 Nam Mud (Upstream) 3 3 253 13,000 600,000 271 145 120 (3HW: Kang, Dan, Pho) Nam Guer (3HW: Thart, 4 3 359 9,500 650,000 285 110 150 Torn, Khay) III Peak (Additional)

5 Nam Kha (Standby) 5 3 90 4,570 350,000 95 33 50

Subtotal 14 979 46070 3,100,000 1012 388 0 620

Luang Prabang I Nan

1 Nam Seng (existing) RSP) 9 421 15,430 350 350 Nam Seng (extension) - 1 2,680,000 6 180 15,400 265 265 SC1 RSP 2 Nam Nan (2,3,5) 2 16 545 27,600 700,000 265 72 200

II Xiengngeun

3 Nam Khan (1,2,3,4) (Water 3 9 144 23,860 131 73 20 short) Subtotal 31 1,146 58,430 3,380,000 880 422 465

Xayaboury

I Phieng (RSP) 50

1 Phieng 1-2 1 15 852 11,600 850,000 721 440 150

II Paklay

# Sub-Project Ra Villa HHs Catchm Cost. Est. WS DS Exp Incr. nk ge (#) ent ha ha (ha) DS (#) Area, crop ha. (ha) 3 Nam Pon 2 1 188 9,930 200,000 75 25 50

III Xayaboury

4 Houay Khean Reservoir 3 3 284 400,000 200 50 100

II Paklay

2 Nam Yang 3 4 3 496 26,700 450,000 400 200 180

Subtotal 22 1820 48230 1,900,000 1396 715 480

Project total 90 5,701 329,980 11,320,000 3,840 1,819 59 1900

C. Representative Subprojects for Detailed Design 65. The four representative subprojects (RSP) were selected to provide a cross section of the typology of irrigation investments identified in the four provinces. These subprojects were also selected on their potential role in demonstrating irrigation modernization, dry season irrigated agriculture and their economic development impact. The four RSPs are expected to be used as demonstration or pilot sites.

66. The four representative subprojects cover 35 villages, and about 2,551 households. In total the wet season command areas is approximately 1,774 ha dropping to 1,165 ha during the dry season. The total upstream watershed area encompasses 529 km2. The 4 RSPs are described briefly below.

1. Nam Seng Subproject - Luang Prabang 67. The Nam Seng subproject is an existing scheme with the proposed subproject expanding the command area and undertaking restorative maintenance to the headworks and main canals to protect from sediment inflow and the main canal access. Within MC 1 and MC 2 additional support will overcome short lengths of canal instability and leakage to support more reliable coverage of the existing command area.

68. The majority of the subproject investment seeks to expand the command area into the SC1 stage that involves a SC1 main canal and tertiary canals that support a new command area of 265ha.

69. The proposed Nam Seng subproject area is located in Nan District of Luang Prabang Province, about 7 km out of the district town along national Road No. 4, close to the junction with national Road 13 North at Xieng Ngeun District of Luang Prabang Province. The SP area is about 70 km from Luang Prabang City. The road connects directly with Sayabouri District of Sayabouri Province. The proposed subproject involves 7 villages farming in the Thongphieng Vilay valley including: i) Thongphieng Vilay, ii) Sivilay, iii) Nakheun, iv) Thad, v) Phon Hine, vi) Pak Khone and, vii) Simoungkhoun village.

70. The physical works involved in the extension and modernization of the Nam Seng irrigation scheme involve:

Headworks (i) Installing a sediment gate in the Nam Seng headworks weir crest to permit flushing in the wet season and

(ii) Repairing the concrete on the downstream apron and local scour issue

Distribution canal (i) Securing the main canal (MC) from damage during large floods. This involves ensuring the canal front and side walls at the first control gate are above design flood level. (ii) Repairing the MC canal road for 8 km from downstream of the tunnel to the outlet to Houay La catchment. (iii) Repairing and installing additional masonry lining in 15 sections in canals MC and MC1 (total 2,340 m), to reduce leakage losses (iv) Covering the canal in unstable bank sections to prevent land slide debris blocking canals MC and MC1 (total of 865 m) (v) Installing improved canal crossings / super passages for watercourses to secure canal and prevent water ingression at 12 places along MC and MC1 (vi) Constructing SC1 canal (new) to serve the extension 265 ha command area (vii) Constructing 4 tertiary canals and 2 sub-tertiary canals (TCs) to Improve water distribution and use efficiency

Access (i) Improving field access in the SC1 command area by incorporating roads along SC1 and TCs to facilitate production, irrigation operation and maintenance.

Other (i) Installation of staff gauges to facilitate water management in all canals and distribution points

71. Nam Seng irrigation project was designed to supply a command area of about 1000 ha, of which 350 ha has been developed to date. Currently in the wet season rice is irrigated using field to field flow over the full 350 ha during rainfall deficit periods and 320 ha is irrigated from Dec to Mar for DS rice production.

72. Of the three future areas identified for expansion in the Nam Seng irrigation scheme, area SC1 which is a 265 ha block served by the SC1 canal is proposed for inclusion under the Nam Seng RSP. Within this 265 ha area, 4 tertiary units are to be irrigated using 4 tertiary and 2 sub- tertiary canals (TCs) covering some 240.4 ha. The balance 24.6 ha of block SC1 is to receive water directly from the SC1 canal. As there is only a 1 to 2 m fall across the command area from the design operating water level in SC1, a piped reticulation system is not an option and therefore elevated lined rectangular canals are proposed. From these TCs, farmers will let water out into field channels which they will construct along the contours to serve their fields. The preliminary design checks show that the length, slopes and capacities of these field channels can be constructed within the recommended parameters for good irrigation practice for furrow irrigation.

73. As per initial planning, the command area will be planted in rice in the wet season and a mixture of higher value field crops in the dry season. The dry season crops suggested for design (as obtained in discussions with the PIS and farmers) are garlic, soy bean, ground nut and vegetables. No DS rice has been included in the mix. In the preliminary design it has been assumed that the mean crop rooting depth will be limited to 0.4 to 0.5m due to the long tradition of cultivating rice.

74. The economic feasibility is robust with an EIRR of 11% based on the projected changes to high value crops. However, if required to produce dry season rice, the scheme will be economic inefficient and unable to sustain its infrastructure.

Figure 1: Nam Seng Satellite image showing Head Works

2. Nam Phieng – Xayaboury Province 75. The Phieng 1 and 2 subproject is an existing irrigation scheme. The scheme involves a single headworks that delivers water to Phieng 1 with control gate to divert water to Phieng 2. Originally constructed in 1959/60 by AFD it was upgraded in 2003 2004 under the DIDM project. The scheme has traditionally been used for two seasons of rice production per annum.

76. Phieng 1 was designed as a 477 ha command area however it currently serves 394 ha of wet season rice and 122 ha of dry season rice with a total of 474 beneficiary households. Phieng 2 was designed for 320 ha but this has declined to 295 ha with the change in land use. Currently the 2017 irrigation season saw 256 ha of wet season rice and 100 ha of dry season rice produced.

77. The proposed works involve cleaning and reshaping of the main and secondary canals, construction of new concrete distribution boxes on the main canals, lining of sections of secondary canals and installation of tertiary / farm channel outlets. In Phieng 1 the upgrading of the main access road along MC1 to provide all weather access is also proposed as is the scour erosion repair for the headwork of Phieng 2.

78. In Phieng 1, the main canal (MC) is concrete lined in parts (mainly in fill sections) throughout its 1680m length. Some erosion is occurring but otherwise embankments are quite sound. Farmers reported some weak sections and need for cleaning in sections totaling about 500m. In total there are 19,800m (16 canals) of which 8000 m is considered in need of upgrade.

79. In Phieng 2, the main canal (MC) is lined (by DIDM) for first 600m then is an earth channel for the balance 4,750m. The concrete lined section is now showing signs of damage with concrete broken longitudinally and some holes observed. The biggest problem is with canal bank collapse in the earth sections – the critical section reported by the farmers in need of repair is from cha: 2000 to 3000m. There are 7 main secondaries of about 4,900m in total length of which some are lined with brick masonry.

80. Phieng 1 and 2 are currently operated by a WUA that is highly effective and is often used to provide training and group to group capacity strengthening programs.

81. The subproject rationale is to provide the infrastructure and scheme operational input to provide reliable and controllable water within entire command area for the wet and dry seasons. This will involve providing additional water control through the upgraded main and secondary canals and offtake to the farmer constructed tertiaries and distributaries. The improved water use efficiency along with increased water control will enable dry season water to be delivered for a 12-hour irrigation day on a 7-day rotation. The new and upgraded canals will improve conveyance efficiency, reduce water losses which will increase reliability of wet season irrigation and remove the yield losses in dry years and during the dry season support production of high value crops. In summary the subproject is expected to:

(i) Reduce the yield losses of wet season rice due to improved water conveyance (ii) Establish dry season command area that receives reliable water (iii) Control dry season water through scheduling a 12-hour irrigation windows delivering water every 7 days to match crop water needs (iv) Bring routine and periodic maintenance requirements within the capacity of WUA to implement

82. The scheme command area is relatively simple and in good condition. The catchment area above the top headworks totals 116km2 and is assessed to be in good overall condition.

83. Additional support is being financed by KfW for a community and village forestry program in the catchment.

84. The economic viability of the subproject investment was assessed in terms of (i) increased productivity from the wet season rice for the command area at the end of the main canal due to improved water delivery, (ii) Increased extent of the dry season command area supporting the production of green fresh soybean under a contract farming system. Both the FIRR and the EIRR are high and very robust reflecting the incremental infrastructure investment that in turn enables the production of a far higher value crop.

85. The economic viability of the subproject investment was assessed in terms of (i) increased productivity from the wet season rice for the command area at the end of the main canal due to improved water delivery, (ii) Increased extent of the dry season command area supporting the production of green fresh soybean under a contract farming system. The EIRR is high and very robust reflecting the incremental infrastructure investment that in turn enables the production of a far higher value crop.

Figure 2: Nam Phieng Command Area and Villages

3. Nam Tong – Xiengkhouang Province 86. The Nam Tong subproject involves a series of hydrologically linked irrigation command areas sharing an upper catchment. Previous projects invested in different components of the overall irrigation system including the ADB financed CMI project investment into the upper most concrete weir known as HW 1 that supports 27ha of wet season rice and in HW2 a small gabion based weir that was destroyed by flooding. Earlier Govt of Laos and Vietnam Cooperation supported investment constructed HD 3 in the lower reaches of the Nam tong supporting a 123ha command area.

87. During the wet season the command area is used for the production of wet season rice mostly Khao Kai Noi (little chicken rice) which is limited to Houaphan and Xiengkhouang provinces. There is limited dry season cropping that is mostly limited to the lower command area of HW3 that produces green vegetables, cucumber, garlic and chilli production. A small area of green leafy vegetables is produced along the canal of HW 2.

88. The Project will support headworks 2 and 3 and the associated distribution across the 173 hectares of command area to ensure irrigation water required for dry season cropping (including fodder). The impact of the investment is expected to (i) increase the cropping intensity from 1.0 to 2.0 through the production of garlic, cucumber, green vegetables and crops such as chilli. Potential exists for the production of legume-based proteins such as soya for local livestock feed processing enterprises in Phonesavanh or alternatively producing fodder to fatten livestock in the dry season. It is also expected that there will be an increasing area supporting fodder production as technology is tested and adopted.

89. At the written request of landowners, the project will support the land excavation costs of up to 15 hectares of fishponds which produce wet season fish. The fishpond investment was identified and prioritized during village consultations as one means the project could deliver benefits to households whose land is at an elevation higher than the irrigation water level. Through

26 excavation of a fishpond, water can be applied to the land and the land can increase its productivity. The excavation of fishponds is voluntary and for those landowners who express in writing their request to have fishponds excavated on their land.

90. Improved access will be supported through upgrading of two roads sections, (i) section 1 being 600m adjacent to Nalam Hamlet to reduce dust and improve the existing road surface conditions, and (ii) section 2 being a 2,000m upgrade from approximately headworks 1 through to Ban Xouan village in the upper catchment that includes a submersible causeway.

91. The project site is located 35km from Phonesavanh City on provincial road 1c and is located at Km8 to 10 from the junction with National Road 7 of Pek District. The subproject area consists of three main villages, two of which comprise several hamlets. At the lower end of the subproject command area Khangvieng village administers Khangvieng, Phai Gnum, Poungpan hamlets and is associated with the head works (HW) 3. In the mid reaches Mieng Nalam village administers Mieng, Nalam, Gnan and Nasang hamlets, all of which are inhabited by the Lao-Tai group and are associated with HW 1 and HW2. Ban Xouan is a village with population from the Iu-Mien ethnic group associated with the upper catchment program.

92. The social assessment of the subproject villages indicates highly integrated ethnic groups both economically and increasingly socially, and the predominance of household income (approximately 55% to 60%) is derived from off-farm sources. The subproject households are increasingly linked to the wider economy and there is increasing use of household labor outside of agriculture. The low financial returns to household labor from wet season rice, is accepted by households in return for the food security it provides. Going forward as non-farm incomes continue to increase, and family members spend more time outside of the village it is likely these households will move to purchasing food security rather than investing their time in low returning wet season rice. Current farming systems linked to wet season irrigated rice are increasingly unlikely to retain labor in the agriculture sector that will create new social change pressures through declining rural communities.

93. Daily wage rates for labor in Xiengkhouang are high due to the influence of tourism with daily wage rates as high as LAK 120,000 (USD 15 per day) possible for educated individuals. Local subproject rates range from LAK 50,000 to 80,000 per day. To retain labor in the agriculture sector and the supporting rural communities requires substantially higher returns to household labor that are only available from dry season crops and livestock. Without increased returns to labor there will the continued shift from agriculture wage labor to employment and off farm activities which will eventually result in command area remaining fallow and rural community decline.

94. Subproject poverty levels are extremely low at between 1% and 4% of households with monthly per capita incomes ranging from $30 per month up to $140 per month for the highest wealth group in the survey. These self-expressed incomes are likely to understate actual cash incomes and exclude the value of household consumption of food and protein produced. In households with higher wealth there is also increased off-farm income with only 22% of the reported income derived from cropping and a further 10% from livestock and non-timber forest products.

95. Household livelihoods derived from the village are increasingly feminized with women reporting increasing roles within the overall household economy and express concern about their growing workloads. Specific issues raised by women relate to their ability to access opportunities from training and access information about opportunities for household improvements. Households have sufficient water and sanitation facilities with the exception of Ban Xouan where

27 water supply, latrines and access to schools is more limited. A set of gender actions is provided and it supports the need to enable voice and access to decision making and capacity development opportunities especially for what appears to be a higher drop out for young women involved in tertiary education. Economic development opportunities for women linked to food crop diversification, household nutrition and trading of produce are prioritized.

96. Both men and women focus groups prioritized the need for cropping technologies linked to high value dry season crops and improved livestock production systems as their development needs. This includes access to technologies and training in the integration of technologies into their farming systems.

97. Output 2 of the subproject is the protection of the Nam Tong Catchment Watershed Ecological Services. The upper catchment above the HW1 (totalling of 40km2) is mostly allocated to Ban Xouan village that has developed the initial land use allocation zoning plan produced by TABI in 2011. The catchment includes conservation and village forest (accounting for 66% of the catchment) plus a further 286 ha of annual rotational swidden agriculture (8%), 102 hectares of livestock pasture (3%), 566 ha for forest tea production (17%). The high value forest tea production is low density tea under forest cover that supplies into China for the spring and autumn flush at premium prices.

98. The project will support the implementation of the land use plan including reconfirming land use zones, development of land use objectives by zone, setting physical targets for each priority land use zone and then implementing these over the 5 to 7-year implementation period. As a starting point a rapid land use plan update will be undertaken that will develop land use change options and physical targets for these. Based on the preferred land use change models and the associated physical targets the SRIWSM investment will be defined. Initial consultations have established agreement over the process and have indicated what land use change is likely to be required to improve permanent vegetative cover. These improvements include establishing perennial vegetative cover through forest tea expansion and infill planting of existing forest tea, natural regeneration of degraded forest and the retirement of the rotational upland cropping areas in return for wet season irrigation. A total of six check dams will be used to retain rainfall in the catchment longer.

99. In the upper catchment it is expected that 21 ha of wet season rice and approximately 5 ha of dry season vegetable will be produced in return for relinquishing the annual rotational upland crop/swidden agriculture areas. Further to support these land use changes the project will support expansion of the forest tea area by 50 ha (at low density) under an open forest canopy and infill planting in 50 ha of existing tea orchards using 200 seedling per hectare. The return to labor for established tea during the high value spring flush exceed LAK 200,000 per day and in some cases exceed LAK300,000 ($35 per day) however this is only available during the spring flush for 4 to 6 weeks. The returns per day for wet season tea are far lower but still substantially higher than that of rice at over LAK100,000 per day. The project will support the tea sector and communities to introduce wet season tea processing and packaging for the red tea market. Perennial vegetative cover will be supported through permanent pasture trials for fodder systems, natural regeneration of conservation and village forest land, agroforestry and soil conservation plantings.

100. The rationale for the subproject is to promote dry season cropping on small cascade systems to take advantage of local markets for high value crops especially organic vegetables, mulch based high value crops and improved livestock production. Developing water control systems within the command area to support dry season production systems and the management of water for high value use during the dry season is also important.

Figure 3: Nam Tong Command Area and Distribution Network

4. Nam Poua - Houaphan 101. The Nam Poua subproject is an existing irrigation scheme constructed under the ADB funded Community Managed Irrigation (CMI) project in 2000. The scheme is relatively simple with a single weir headworks and one main canal with gravity fed field to field flow that supports a wet season rice crop.

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

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

104. The subproject comprises of an existing headworks (Keng Ay weir) located 1km upstream of Ban Namao on highway 6a. The headworks was constructed in 2000 under the ADB CMI project is assessed to be good. There is one main canal off take on the true right bank at an elevation of 630m.asl that extends for (9100m) at a design gradient of 0.001. The main canal

29 apart from a 700m section is unlined with a bed width of 0.9m and a depth of 1.0m designed to deliver a peak flow of 456l/s. The canal condition is assessed to be adequate with some sections needing upgrading to reduce leakage and other sections require cleaning.

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

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

107. The subproject rationale is to provide the infrastructure and scheme operational input to provide reliable, controllable water throughout the entire command area for the dry season. This will involve providing additional water control through buried secondary distribution pipes and off take points for piped, handheld hoses or sprinkler applications. The improved water use efficiency along with increased water control will enable dry season water to be delivered for a 12-hour irrigation day on a 5-day rotation. Limited upgrading will be provided to the main canal to reduce the losses and damaged sections to increase water delivery through the lower reaches of the command area adjacent to the canal end. This will increase reliability of wet season irrigation and remove the yield losses to the wet season rice crop in dry years. Further the area will be serviced during the dry season for high value crop use. In summary the subproject is expected to:

(i) Reduce the yield losses of wet season rice due to limited conveyance of wet season water (ii) Increase dry season command area that receives reliable water (iii) Deliver dry season water using pipes throughout the command area where individual farmers can connect into using hose pipes, leaky pipes or sprinkler systems (iv) Intensification of dry season production through reduced inter-row spacing as a result of moving from furrow to hose or pipe-based irrigation systems (v) Controlled dry season water through scheduling a 12-hour irrigation window delivering water every 5 days to match crop water needs more efficiently (vi) Increase the cropping intensity from less than 1.5 to at least 2.0

Figure 4: Nam Poua Command Areas

VI. RESETTLEMENT IMPACTS

A. Scope and Nature of Impact 108. Subprojects generally involve the modernization of existing irrigation schemes, the expansion of command areas, the enhancement of access to command areas through upgrading of existing access alignments. Within the command areas distribution systems maybe upgraded through lining, protection from sediment or flood water intrusion, and improved water control systems. It is envisaged that dry season water could be applied using natural head pressurized spray or hose watering systems. Hence, the overall impact of the project is expected as being highly beneficial to the HHs in the area, and the number of affected households that are adversely impacted is relatively small. The expected impacts (see Table) may involve the permanent loss of small areas of land; minor damage to structures, crops and trees, and temporary loss or disruption of the use of land or other assets caused by construction works and the movement of construction plant and materials to and from work sites. For each subproject, the type and nature of impacts will be set out in detail in the LARPs that will be developed following the detailed engineering design.

Table 4: Anticipated Impacts Output / Activity Negative Impact Positive Impact Output 1: Irrigated and upland None anticipated Increased value addition and farmers with income increased lowered risk from the production from HVC and livestock of high value crops leading to more resilient and higher income levels for producers Output 2: PRI Catchment Possible restrictions on Sustainable watershed to watershed ecological services expanding agriculture activity in maintain irrigation water protected upper watershed areas. resources. Permanent loss of common Reductions in illegal activity. property areas used for grazing. Improved NRM and diversity. Increased dry season cropping areas to mitigate any land use restrictions Output 3: PRI upgraded to be Acquisition of thin strips of land Easier access, convenient climate resilient, efficient, and for access roads and irrigation transfer of crops/produce, sustainable distribution system reduced travel time. improvement, or structures and Improved Wet Season trees supplementary irrigation – increased benefit area, better water management. New dry season or increased dry season cropping areas. Improved water supply, volume and reliability. Increased crop yields Increased income from crops Increased land value Output 4: Improved nutritional None Increased awareness of status of targeted communities nutritional needs of children. Increased demand for diversified output

B. Mitigation of Land Acquisition and Ethnic Group Concerns 109. To avoid or minimize the potential resettlement impacts from the project activities, the implementing agencies will:

(i) Consider other feasible design alternatives that result in the least impact on land acquisition, (ii) Ensure full meaningful community consultation with beneficiary men and women, in the design process, and acceptance of the subsequent detailed design (refer 2. Community Consultation guidelines at Section IX: Resettlement Planning and Implementation and Table 12 below), (iii) Where adverse impacts are unavoidable, prepare a LARP that provides the financial and technical assistance to households as prescribed in this REGDF; (iv) Ensure adequate monitoring of construction activities to ensure adherence to approved designs, LARP implementation and the provision of compensation, allowances and livelihood restoration measures when required; and (v) Ensure adequate EG screening and consultation to identify impacts and any EGDP elements needed to be included in each LARP for use in target communities to ensure full inclusion, participation, representation and benefit sharing.

VII. INDIGENOUS PEOPLES CATEGORIZATION

A. Ethnic Group Screening 110. The Project has been categorized as B for the Indigenous Peoples safeguard to ensure that there is culturally appropriate consultation, equal participation and benefit sharing.

Table 5: ADB SPS IP Characteristics ADB IP Characteristics EG in Project Areas Characteristics i) self-identification as members of a distinct EG members self-identify through language within their indigenous cultural group and recognition own HHs and with others of the same ethnicity. Most in of this identity by others; the project areas are living in ethnically mixed communities however there is a self-identification expressed in continuation of beliefs and traditions and the wearing of traditional dress (particularly for women) especially during cultural festivals. (ii) collective attachment to geographically EG communities in the subproject areas have (over distinct habitats or ancestral territories in generations) moved or been relocated away from the project area and to the natural highland areas due to war, natural disasters, returnee resources in these habitats and territories; refugees, eradication of subsistence slash and burn farming and in some cases opium production. Some EGs have taken up lowland rice and cash crop farming as the main livelihood activity, and adopted permanent upland farming systems growing tree crops such as oranges. The EGs in project areas are no longer demonstrating collective attachment to specific geographic areas and are living alongside and amongst Lao communities, sharing the local natural resource base. They use, share and jointly manage irrigation facilities with other EGs including the Lao-Tai. (iii) customary cultural, economic, social, EGs in the Project areas reside in villages alongside or political institutions that are separate mainstream Lao-Tai groups and in villages of mixed from those of the dominant society and ethnicity. The ethnic groups in the project area are culture; considered to be fully integrated within the Lao-Tai social, political administrative systems, the cash economy and the commercial marketing of produce. Those living in Project areas are utilizing the existing irrigation schemes but are underrepresented in WUGs and in government structures (iv) a distinct language, often different from EGs retain their own language and use it within the HH the official language of the country or and also within the village, however, many are fluent in region Lao, their children attend Lao schools and receive instruction in Lao language. EG literacy rates are behind those of the mainstream Lao, and the literacy rate for EG women is lower than that of EG men.

B. Ethnic Group Development Special Measures 111. The level of ethnic group literacy is a factor that needs to be considered to ensure meaningful consultations are conducted and may impact inclusion and participation that needs to be addressed, to ensure full and equal participation, representation, and to enable access to project benefits for all. The literacy issue is more acute amongst EG women than men. Literacy rates for young males of Lao-Tai ethnicity are 84%, but only 63% for Mon-Khmer. The disparity increases for ethnic females, with 81% of Lao-Tai ethnicity but only 45% of Mon-Khmer ethnicity

33 are literate in the Lao language10. This is explained by lower rates of enrolment and greater drop- out rates for rural women in remote areas (usually inhabited by EG communities).

112. REGDF special measures (see Table 6) will be included in the subproject LARP to ensure literacy is not a barrier for equitable participation for EG communities and affected EG HHs. The special measures are described below and will need to be customized for each subproject context during SP design processes and through consultation with affected households and ethnic group households.

Table 6: EGDF Elements Project Component Ethnic Group Development Framework - Elements (i) Irrigated and upland farmers • Translation of communication messages into corresponding with income increased from language where necessary and the use of pictures for universality HVC and livestock of key messages. • Proportional representation in market linkage programs. • Proportional representation in capacity building. • Awareness and access options for the inclusion of EG in grant program. (ii) PRI Catchment watershed • Translation of communication messages into corresponding ecological services protected language where necessary and/or the use of pictures for universality of key messages. • Proportional representation of ethnic groups and women on all subproject management committees and in community decision making bodies. • Capacity building for ethnic groups (men and women) to enable participation in subproject and community decision-making delivered in local language and using appropriate communication methodologies. • Proportional representation of ethnic groups (men and women) in project study tours, trainings and related programs. • Extension services designed for and delivered to ethnic groups and women using translators for those who are not fluent in Lao. • Implementing agencies will ensure any land use certificates or titles issued under the Project are updated in both spouses' names • Clearly reading out and explaining asset registration and compensation agreements documents to both heads of household prior to requesting for their acceptance and signature. (iii) PRI upgraded to be climate • Translation of communication messages into corresponding resilient, efficient, and language where necessary and the use of pictures for universality sustainable of key messages, including the inclusion of the compensation flowchart (Figure 5) in the PIB. • Documented evidence of consultation with EGs during infrastructure design and layout. • Documented evidence of consultation with ethnic groups (women and men) demonstrating their support prior to subproject approval. • Ensure Grievance Resolution Mechanism disseminated in appropriate languages. • EGs represented proportionally on water user committees and other CBOs. • EGs participate proportionally in agriculture, irrigation O&M, WUG and other training being provided. • Training participation is reported, disaggregated by sex and ethnicity.

10 Ethnic Groups Development Plan for the Second Global Partnership for Education Project, Department of Planning, Ministry of Education and Sports, June 2014

• Local translation provided for all training events. • Local contractors employ women and men from poor ethnic households in construction activities were their skills allow for such work. • Equal access to work and equal pay for women and men for work of equal type. • Clearly reading out and explaining asset registration and compensation agreements documents to both heads of household prior to requesting for their acceptance and signature

(iv) Improve nutritional status • Proportional representation of all ethnic groups and women on of targeted communities district nutrition committees • Translation of communication messages into local language where necessary and the use of pictures for universality of key messages • Representation and participation of EG in village nutrition schools • Access to Water and Sanitation for Health (WASH) infrastructure investments where required. (iv) General – applicable to all • Safeguard (Indigenous Peoples) specialist included in national and outputs. provincial subproject implementation teams. • Social Impact Analysis and EGDP elements will be prepared for each subproject LARP. • Ongoing training and mentoring by International and National Specialists will be provided to national and provincial staff to enable effective preparation and monitoring of individual IPPs for each subproject. • All monitoring and evaluation data disaggregated by ethnic groupings (four ethno-linguistic groupings) and sex. • PGT and PPITs responsible for monitoring and reporting of EGDP elements performance indicators, including ethnic group participation, training and employment targets. • EGDP performance included in mid-term reviews.

VIII. PROJECT RESETTLEMENT PRINCIPLES AND OBJECTIVES

A. Objectives 113. The REGDF provides the purpose, principles, and procedures to be used in screening, planning, and implementing resettlement for any subproject or component of the Project with resettlement or land acquisition and where ethnic groups or households are present. The project’s entitlements, assistance and benefits in relation to land acquisition and resettlement impacts are presented below. These entitlements are governed by the laws and regulations of the Govt. of Laos and ADB’s SPS (2009) and take into account the extent of losses incurred by AHs resulting from acquisition of assets. The purpose of this REGDF is to ensure that the following objectives are met:

(i) Adverse social and physical impacts of subprojects are avoided, minimized, and or mitigated; (ii) All AHs with severe impacts are provided with appropriate compensation and assistance for lost assets which will contribute to an improvement of, or at least maintain, their pre-project quality of life; (iii) Nobody will be disadvantaged because of the Project; (iv) Improve, or at least restore, the livelihoods of severely affected persons.; (v) Design alignments will endeavor to avoid impacting on land of vulnerable HHs were feasible;

B. Land Acquisition 114. The LARP procedure will follow the compensation principles outlined in this REGDF. Where compensation for land, structures or assets is required, compensation will be based upon full replacement cost and current market prices. The calculation of full replacement cost will be based on the following elements: (i) fair market value; (ii) transaction costs; (iii) interest accrued, (iv) transitional and restoration costs; and (v) other applicable payments, if any. Where market conditions are absent or in a formative stage, the borrower/client will consult with the displaced persons and host populations to obtain adequate information about recent land transactions, land value by types, land titles, land use, cropping patterns and crop production, availability of land in the project area and region, and other related information.

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

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

1. Land donation 117. Farmer equity and community readiness in irrigation investment is to be encouraged as the main drivers in the demand for and successful maintenance of irrigation facilities11. Productive land contributed for irrigation canals and channels (particularly tertiary and lower channels) is not lost, it continues to be productive, delivering water or growing crops. If it is a rehabilitated canal,

11 Without farmer commitment to O&M sustainability, schemes require rehabilitation every 10 years (CES: National Irrigation Diagnostic Study, Laos (1986).

36 it continues to operate and provide the same (although improved) function as before the project often at lower cost or increased efficiency. If it is a newly constructed tertiary or lower channel, the impacted land may change its productive function. Non-productive land may be transformed and used for water delivery, or, land that was not productive in the dry season may now be productive with the availability of dry season water.

118. Potential benefits to households include:

(i) Securing the wet season crop by providing supplementary irrigation when needed12 (ii) Significant financial returns from dry season cropping not previously available to the HH without the newly constructed, extended or rehabilitated distribution canals. (iii) First access to water with offtakes installed on all impacted plots abutting the constructed canal channels (iv) If canals are concrete, reduced labor and maintenance needs and in some instances a slight increase in crop area (v) Better water supply management and improved water distribution providing better yields; (vi) Increased plot value due to irrigation access; (vii) In the case of roads, improved access, more convenience evacuating harvested crops and reductions in travel times and travel difficulties.

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

120. Within the project policy, direct beneficiary households can waive their rights to compensation and voluntarily donate (limited to 9% of the land plot affected by the project which ensures that they are not severely affected) areas of either productive or non-productive land, in exchange for significant, demonstrable and tangible benefits. In essence the loss of the asset plus revenue from the land will be less than the additional benefits that will arise from the remainder of their land in a with-project scenario. Comprehensive consultation with the community as well as AHHs on an individual basis is required regarding the project, its benefits, their concerns and entitlements along with the establishment of an effective grievance redress mechanism.

121. Due to the potential to coerce potential beneficiaries as a means to reduce land acquisition costs the REGDF specifies that during the development of the subproject LARPs there is a requirement to strictly apply all specified conditions whilst ensuring the required procedures and criteria for voluntary land donation is applied. The implementing agencies will apply strict criteria and conduct additional due diligence to ensure the procedures in this REDGF have been applied. Discussions with proposed irrigated agriculture households during SP scoping indicates that farmers are willing to contribute either productive or non-productive land in order to secure the significant economic gains from irrigated dry season crops. A sample land donation form is provided in Attachment 1. The following guidance (Table 7) and flowchart (Figure 5) will apply where voluntary land donation is being considered, and the due diligence process must be able to clearly demonstrate and confirm that the required procedures and considerations have been applied (refer section Reporting Due Diligence at Subproject approval below):

12 The subprojects currently mainly provide supplementary wet season irrigation. The onset of the wet season is usually marked by start-up rains, followed by a drought period of a couple of weeks and in a bad year this can stretch to a drought period of up to a month or more. This has a disastrous effect on newly planted rice causing crops to fail. Wet season supplementary irrigation is used to secure the wet season crop.

Table 7: Criteria and Guidance Notes on Land Donation13 Criteria Guidance Notes The AHs are aware of • Affected Households are advised of the ADB and government compensation entitlements for policies for resettlement and land acquisition in regards to involuntary land acquisition and compensation, and land donation on a voluntary basis. GRM • Consultation are undertaken with AHs on estimated compensation amounts based on DMS and current published provincial compensation rates for the land to be donated. Once full replacement cost is identified, the AH is again consulted with the use of the updated rates and estimated compensation amounts based on the DMS. • Communities are made aware of the GRM and how it is accessed. The households making • The project benefits outweigh the lost land or assets. voluntary land donations are • Both positive and negative impacts of the project on the direct beneficiaries of the project affected household are considered and consulted with the AHs. • The affected household can identify the project’s direct benefits to them. The rotational basis and scheduling of water delivery during operations is clearly explained and understood. • Assets (trees / crops / structures) will be compensated for and cannot be donated. • Vulnerable households are not eligible for donation. Impacts do not result in • Only secondary structures are affected; there is no physical displacement of households or relocation of household due to the project or the land donation. cause significant loss of • Cumulative impacts are not permitted and AHHs can only household’s incomes and donate land from one land plot with a maximum of 9% impact. livelihood If a second or subsequent land plot (in addition to the area affected already calculated as part of the donation agreement is affected, this will nullify the donation agreement and the land will be compensated through this resettlement framework. • For the avoidance of doubt, donations will not be accepted for any AH who have 9% or more of the land plot affected by the project.. Land donated is free from any • The affected household has recognized legal tenure. dispute on ownership or any • The land is not being occupied and/or used by any other other encumbrances party. • The land is not in dispute for its ownership. Consultations with the affected • Use of pictures for universality of key messages, including the households is conducted in a use of the compensation flowchart. free and transparent manner • The affected households are informed that they have the right to accept compensation for land acquired by the project. • The affected household receives clear and adequate information on their entitlements (specifically stating the value of such) and participates in the project planning. • For households who are illiterate or for those who have limited reading skills, forms requiring signature by households are read out to the household during consultations, prior to signing. Land transactions are supported • Official land ownership document of the remaining unaffected by transfer of titles land is updated free-of-charge to the household in the name of both husband and wife.

13 Criteria to be included in the Project Information Booklet in the appropriate language

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

Figure 5: Flowchart on Compensation Options

2. Compensation Principles 122. Where compensation and livelihood rehabilitation measures are to be provided, the following principles are to be applied:

(i) Lack of formal legal rights to the land lost will not prevent affected persons from entitlement to resettlement assistance and compensation for non-land assets and rehabilitation measures. (ii) Cash compensation will be assessed at replacement cost for land and other assets (including houses and other structures) without deduction for transactional costs, depreciation or salvageable materials. (iii) Replacement of agricultural land for land of demonstrated equal productive capacity and quality as well as needing to be acceptable to the affected person. (iv) Replacement of residential and commercial land for land of equal size and quality need to be acceptable to the affected person; and transfer and subsistence allowances including the land title in the name of both husband and wife. (v) Replacement of agricultural, residential or commercial land will be as close as possible to the quality of land that was lost, and acceptable to the affected person. (vi) Plans for acquisition of land and other assets and provision of rehabilitation measures will be carried out in consultation with the affected persons to ensure minimal disturbance. (vii) Compensation rates for physical assets (land, house, trees and crops, buildings, and other structures) and non-physical assets (lost income from productive assets or jobs) will be calculated at replacement cost at current market value at the time of compensation. (viii) Affected persons that stand to lose only part of their physical assets will not be left with a proportion that will be inadequate to sustain their current standard of living; such a minimum size being identified and agreed during the resettlement planning process. (ix) When the criteria for land donation on a voluntary basis (Table 11) is fulfilled the APs can waive their rights to compensation that they are entitled to. (x) Voluntary land donation is to be confirmed in a written and signed form by both husband and wife. With the consent of AP, supporting documents such as photo or video evidence shall be collected for due diligence to be conducted by the external monitor. (xi) Affected persons will be systematically informed and consulted about the proposed Project, the rights and options available to them and proposed mitigating measures, and to the extent possible be involved in the decisions that are made concerning their resettlement. (xii) The consultative process will include not only those affected, but also representatives of the local governments of the areas in which the subproject is located, host communities' community leaders, civil society organizations such as NGOs, and members of local people’s organizations. (xiii) Existing cultural and religious practices shall be respected. (xiv) Special measures shall be incorporated in the LARP to protect socially and economically vulnerable households. (xv) The previous level of community services and resources shall be improved after resettlement. (xvi) There shall be effective mechanisms for hearing and resolving grievances during the implementation of the LARP.

(xvii) The compensation, resettlement and rehabilitation activities will be satisfactorily completed before a ‘No-Objection’ from ADB will be provided for the subsequent award of contract of civil-works under each subproject. (xviii) The Executing Agency (EA) will ensure institutional arrangements are in place to ensure effective and timely design, planning, consultation and implementation of the land acquisition, compensation, resettlement, and rehabilitation program. (xix) Where a host community is affected by the resettlement of others into that community, the host community shall be involved in any resettlement planning and decision- making. All attempts shall be made to minimize the adverse impacts of resettlement upon host communities. (xx) Adequate budgetary support will be fully committed and made available to cover the costs of land acquisition and resettlement within the agreed implementation period. Owing to practices established under current government procedures, clear budget commitments are required for critical activities such as formal detailed physical surveys and administrative functions associated with compensation and resettlement. (xxi) Appropriate reporting (including auditing and redress functions), monitoring and evaluation mechanisms, will be identified and set in place as part of the resettlement management system. An external monitoring group shall be hired by the Project and the said group shall evaluate the resettlement process and final outcome, comprised of one International and one National specialist. Such groups may include qualified individuals, NGOs, research institutions or universities. Monitoring reports shall be forwarded directly to ADB. (xxii) Construction activities will not commence until the required lands have been fully acquired and AHs appropriately compensated and relocated in accordance with the principles set out above.

3. Eligibility, Cut Off Date and Entitlement 123. The cut-off date of eligibility for entitlement is the date that the preliminary detailed measurement survey (DMS) commences. The Provincial Project Office (PPO), in association with Provincial Agriculture and Forestry Office (PAFOs) and District Agricultural and Forestry and Office (DAFOs), shall officially inform target communities, provincial and district resettlement committees, and villages with affected persons' villages of the proposed schedule of activities. The PRC shall approve the proposed activities and shall issue a notice to proceed to PAFO to carry out the DMS. The PRC shall also officially inform the concerned district and village administrations and concerned departments and local-based organizations to assist PAFO with these activities. Persons who encroach upon the area to farm or settle, after the above cut-off date, will not be entitled to compensation or any other form of resettlement assistance. The preliminary DMS will be updated after preparation of the final detailed design and the PMS update referred to as the DMS.

4. Project Affected Persons 124. The Project includes the following persons that need to be identified during the LARP census for each subproject where there is land, property, or other asset acquisition, or resettlement involved:

(i) Persons whose agricultural, residential, or commercial land is in part or in total affected (temporarily or permanently) by the proposed Project; (ii) Persons whose houses and other structures are part or in total affected (temporarily or permanently) by the proposed Project;

(iii) Persons whose businesses or source of income are part or in total affected (temporarily or permanently) by the proposed Project; (iv) Persons whose crops (annual and perennial) and trees are affected by the proposed Project; and (v) Persons whose other assets are part or in total affected (temporarily or permanently) by the proposed Project; (vi) Persons who will be affected due to involuntary restrictions on land use; (vii) People who will lose or restrict access to natural resources, communal facilities and services; (viii) Persons whose livelihoods are negatively affected, permanently or temporarily, by Project activities; and (ix) Persons whose livelihoods are directly improved through the project benefits through provision of improved water availability for irrigation.

5. Project Impacts and Entitlements 125. Entitlements for each type of affected person are based on the types and levels of losses. An entitlement matrix (EM) for the proposed Project is shown in Table 13. The EM is based upon the ADB SPS (2009), and relevant Govt. of Lao laws and regulations. The PRCs publish and periodically update compensation rates for lost assets such as land, structures, tree and standing crops, as well as additional allowances, and these rates vary from province to province. As required under Decree 84, each participating PRC is requested to review and update the compensation rates prior to preparation of the LARP and revised rates will be evaluated based on values of assets as applied by: (i) the market; (ii) local authorities; (iii) other/similar cases; and (iv) expectations from affected persons, and (v) a replacement cost survey. Determining the costs requires information to be collected from respective provincial, district, and village authorities and where possible, recent and relevant free market transactions and replacement cost survey (RCS) in the project area. If there is a delay of more than one year from the RCS to the planned date of compensation being paid, the RCS must be updated and revised rates agreed in the case of any changes. The purpose is to establish the replacement value of the asset being lost. Final compensation unit rates have to be approved by provincial authorities, published, must be within a year of the planned project implementation date and must be provided to AHs prior to impacts.

6. Temporary Loss of Agricultural, Residential or Commercial Land 126. Temporary losses include the loss of use of land for a period less than one year e.g. during construction.

(i) No compensation for land if returned to original user. However, the proposed Project will pay rent to APs during the temporary use of APs’ land; (ii) Restoration of land to its previous or better quality by providing measures to improve land quality in cases of land being adversely affected or acidified; (iii) Return of the land after dry season construction in time for cropping for the wet season; and (iv) Cash compensation for loss of crops and trees at market prices and compensation for loss of net income from subsequent crops that cannot be planted for the duration of the lease; and, If the disruption is more than one year, APs have an option to: (a) continue temporary use arrangements; or, (b) sell affected land to the proposed Project at full replacement cost.

7. Permanent Loss of Agricultural, Residential or Commercial Land Agricultural Land

127. At many sites, actual current land value may not be known by villagers residing in both peri-urban and remote areas. During the DMS, attempts will be made to document recent land transactions in the area. Other considerations include:

(i) Compensation will be through the provision of “land-for-land“ arrangements of equal productive capacity and quality of the lost land satisfactory to affected persons, unless the affected persons specifically requests all compensation to be made by cash; (ii) If the impact on the land is minor or less than 10% of the total productive landholdings or income generating assets of affected persons, the affected persons may opt for cash compensation equivalent to the replacement cost at current market value; (iii) If there is no suitable replacement land available in the vicinity, or if the AP prefers, total compensation may be in cash equivalent to the replacement cost at current market value; (iv) Compensation in-kind at a cost equivalent to the value of the impacted land. In-kind compensation can include items such as development of unaffected land belonging to the households to increase its productive potential. Clear agreements are required to be made on mutually agreed compensation in-kind prior to impacts occurring which should be based on the established compensation value that would have been due to the AHs as part of the entitlements. (v) If agricultural land is divided in two or more parts by the proposed Project and one of the parts of the agricultural land is not sufficient in size to economically cultivate, then, at the written request of the affected persons, the part which cannot be economically cultivated will be acquired by the Project at replacement cost. The threshold of insufficient remaining agricultural land is to be determined based on the consultation with those affected;

Residential Land

(i) Compensation will be through the provision of a “land-for-land“ arrangement of equivalent size and quality satisfactory to APs, or in cash equivalent to the replacement cost, depending upon the AP’s preference and subject to availability; (ii) If the residential land and/or fixed improvement is partially affected by the proposed Project and the remaining residential land is not sufficient to rebuild the residential structure lost, then, at the written request of the affected persons, the entire residential land and structure will be acquired at replacement cost without depreciation. The threshold of insufficient remaining residential land is to be determined based on the consultation with those affected; (v) If there is no suitable replacement land available in the vicinity, or if the affected person prefers, total compensation may be in cash equivalent to the replacement cost.

Commercial Land

(i) Compensation will be through the provision of alternative business or commercial site of equal size, quality and accessibility to customers satisfactory to the affected person; (ii) If the impact on the commercial land is less than 10% of the total area, the affected household may opt for cash compensation equivalent to the replacement cost; (iii) If the commercial land and/or fixed improvement is partially affected by the proposed Project and the remaining commercial land is not sufficient to rebuild the commercial

improvement lost, then at the written request of the affected persons, the entire commercial land and structure will be acquired at replacement cost without depreciation. The threshold of insufficient remaining commercial land is to be determined based on the consultation with affected persons; (iv) If there is no suitable replacement land available in the vicinity, or if the affected person prefers, total compensation may be in cash equivalent to the replacement cost; (v) Cash compensation for the affected business structures at full replacement cost without deduction for depreciation or salvageable materials; and (vi) Cash compensation for the loss of income during the transition period.

8. Loss of Houses and Structures (i) Cash compensation equivalent to replacement cost without depreciation of salvageable materials; (ii) Tenants renting structures are entitled to three months’ rent at prevailing market rate in the area and assistance to identify alternative accommodation and transport allowance and transition allowance.

9. Loss of Crops and Trees 128. Affected crops and trees of AHs will be compensated for. Calculation for compensation shall include the full productive value of the tree if the tree is productive. Saplings and seedlings will be compensated for at full replacement cost including all investments.

129. Cash compensation for loss of crops and trees will be at current market value, and for crops will be based on the anticipated harvest at market value, while will compensation for trees will be based on the type and age, annual maintenance, and productivity. AH have the right to harvest the crops and trees prior to site clearance.

10. Loss of Common Property Resources 130. Such property represents community assets and could be assets such the village hall, temple, school, sports field, roadway, communal forest and other lands used by the community and without user rights issued to any individual. Compensation will proceed accordingly:

(i) Restoration of affected community buildings and structures to original or better condition; and (ii) If income loss is expected (e.g. grazing area, community forest, income from fishpond), the affected household(s) will be entitled to replacement of and compensation for the total production loss for remainder of their turn to use the resources, or as regulated by the PRC.

11. Materials Transport and Transition Subsistence Allowance Materials Transport and Housing Transition Allowances

131. The PRC compensation schedule includes allowances for transportation of materials, either for reconstruction or repair, or for movement of household effects to a new location, and overall disruption. The project owner is required to ensure that all transportation costs for each AHH are covered in full, or the equivalent cash amount provided. The PRC is asked to update its schedule of compensation for land, structures, crops, trees and allowances and the updated rates will be used in calculating the resettlement and compensation cost in the LARP.

Business Transition Allowance

132. Similarly, the PRC will update rates for covering the cost of moving a business and also to compensate for lost revenue. Estimates of lost revenue will be based upon audited account and tax statements, direct negotiation and also in consideration of updated allowances published by the PRC. For employees, cash compensation will be necessary for loss of daily salary/wages for those days they cannot work while business is reorganizing at new site.

Special Assistance for Socially and Economically Vulnerable Affected Households

133. Should AHHs be identified during DMS and SES or through monitoring and GRM as socially and economically vulnerable, subject to subproject impact, are then entitled to additional support as identified. These households will be entitled to seeds and materials for the first dry season cropping free-of-charge in conjunction with an additional training and preference in technology demonstrations. Absentee households, who are not reliant on the affected productive land for their income and livelihoods, are not eligible for this support.

134. Vulnerable AHHs in the command area who are landless, unable to conduct dry-season farming due to disabilities or other reasons, or who would prefer alternative livelihood development and income restoration methods, such as small business or fishponds, should be accommodated and associated training and livelihood packages facilitated.

135. Only socially and economically vulnerable households will be entitled to the special monthly allowance. These AHHs are entitled to a monthly special allowance for each factor of vulnerability (e.g. poverty, disability and old age would be three factors) for 3 months. The special monthly allowance per person in the household will consist of the value of (i) 12 kg of milled sticky rice plus (ii) eight pieces of eggs plus, (iii) 0.8 kg of fresh meat plus (iv) 0.8 kg of dry meat. The cash value per person per month in 2018 is 297,600 Lak per month, or 892,800 Lak of 3 months. The subproject SES will identify such cases with monitoring focused on its compliance with this REGDF and the LARP. Furthermore, preferences will be given as part of this special assistance for extension, training, and contractually required employment through the Project for very vulnerable APs. Absentee vulnerable households, who are not reliant on the affected productive land for their income and livelihoods, are not eligible for this support.

136. Identification of vulnerable households will be done based on DMS, SES, consultations with AHHs and verification by the village administration. Socially and economically vulnerable households will be derived from this list.

IX. RESETTLEMENT PLANNING AND IMPLEMENTATION

A. Preliminary Design Phase 1. Screening 137. It is envisaged that that the subprojects will involve land acquisition and only (LAR and IP) category B and C subprojects are eligible for implementation. Initial subproject screening must be undertaken using the screening checklists provided in Attachment 2, during the subproject detailed engineering design.

138. For subprojects classified as category C, no LARP will be required. In its place, a short due diligence report (DDR) that establishes the classification will be prepared and will include alignment drawings that indicate no land acquisition. The DDR shall clearly state that future

46 design adjustments that may alter the alignments, or result in loss of land, structures or assets will trigger the requirement for reclassification to category B and the provisions outlined within this REGDF and the associated LAPR.

139. The LAR and IP screening checklists should be attached to the Preliminary design report of the subprojects, subsequent supporting LARP / DDR for each subproject, and to the Land Donation Due Diligence Report if there has been any donation of land. The information required under the Land Donation Due Diligence report is detailed further in the following sections below.

2. Infrastructure Planning and Design 140. The engineers will prepare initial layouts for proposed rehabilitation of existing and/or construction of new infrastructure that pass the screening. The layouts will be the basis for the technical and physical planning of rehabilitation and construction works under the proposed subproject. During the preparation phase of such design options, feedback during site visits will be collected from residents of the subproject’s villages. These preparation phase designs have to be reviewed for potential land acquisition and resettlement impacts of the proposed subproject scope during the detailed design phase. The subproject physical design completed at preliminary design phase can then be refined to avoid or minimize, as far as possible, the resettlement impacts and effects of the proposed subproject’s rehabilitated or new infrastructure.

3. Community Consultations 141. Initial consultations with the community during scoping and preliminary design serve a number of purposes which include verifying that the project is demanded by the community, providing communities in the subproject area with information about the project regarding its overall objectives and goals, benefits and impacts, and also inform them of how their participation will be sought during the design stage in order to incorporate their interests and design preferences. Where the SP will proceed to detailed design, it is necessary to inform them of the process that will be followed in preparation of the SP. At detailed design, preliminary phase engineering designs prepared will be further detailed in terms of the scope of land acquisition and those HHs likely to be affected. Communities are also advised of the existence of the GRM, which will be explained multiple times during the preliminary design and LARP preparation process.

142. Public consultation will focus on (i) community needs and demands in regards to the PRI, ii) design options and preferences, iii) project benefits and impacts, iv) scope of land acquisition, v) compensation policy, vi) entitlement matrix, relocation and compensation options and schedule, (vii) livelihood restoration needs if applicable, and, viii) the grievance resolution process. The following table provides details of the consultation activities needed.

Table 8: Stakeholder / Community Participation Plan Participatory Activities/Participants Means of Responsible Institution Communication and Frequency (1) Preliminary Design Briefing of the provincial, district PRC, IAs, and Discussions and PRC, PAFO, DAFO – village officials; and other stakeholders about consultations at the irrigation section. the Project, the resettlement policy, GRM and beginning of preliminary Consultants the activities of the consultants design

Participatory Activities/Participants Means of Responsible Institution Communication and Frequency Community meetings to explain project Discussions and PAFO, DAFO – irrigation concept and likely scope of works. consultations at the section. Consultants Separate men and women’s focal group beginning of preliminary discussion meetings to verify community design demand, issues and needs related to project interventions. Assess community support and identify any remaining issues Follow-up meetings with key individuals and any AHH s Provide community with the process by which to access the the GRM. Water user consultation to identify water use Discussions and PAFO – Provincial needs, and water control structures. The consultations at the Irrigation Section Design consultation will include all water users and or beginning of preliminary team leader and field their representatives. A command area design staff inspection/walk through will be conducted with the PIS design teams to identify modernization needs, priorities Once the preliminary design is drafted with Discussions and PAFO, DAFO – irrigation topographic maps, cadastral maps, and consultations during section. Consultants drawings and cross sections for main detailed design structures and canals the design team will conduct a consultation and feedback session Project Information with all water user groups and associated / Booklet (PIB), affected households distributed to the wider community and All preliminary designs will include detailed available at the EA/IA and up to date topographic and cadastal and District maps with individual irrigation plots clearly delineated to ensure affected land and assets are clearly portrayed during the consultation. The design should be projected on the maps to demonstrate its extent and identify the affected households, and overlaid with satellite imagery.

Community meeting to explain the preliminary design, identify affected HHs. Provide basic information leaflets.

The consultation will, if necessary, repeat the participatory “walk through’ of the proposed canal or road alignment. Identify changes required by the community Meeting with community to review draft design, assess land acquisition impacts. Meetings with affected HH to gauge opinion on land acquisition (voluntary or involuntary) using the compensation flow chart (Figure 5). Reiterate GRM procedure to AHHs. Conduct of social impact assessment. Household level survey Contracted survey firm. Identification of vulnerable HHs

Participatory Activities/Participants Means of Responsible Institution Communication and Frequency DAFO, PRC, consultants, assisted by village officials. Initial disclosure meeting with affected Discussions and PAFO, DAFO irrigation, households to gather suggestions on how to consultations during consultants, assisted by minimize and mitigate impacts, and discuss detailed design village officials, about relocation options. (2) Drafting/Finalization of technical design, Updating and Implementation Finalize Detailed Design. Discussions and PGT, PAFO, DAFO and Convene community meeting to present consultations at end of consultants revisions to design, obtain community detailed design feedback and approval. Meeting with AHHs to review design and extent of impact to AHH. Issue Cut-off date and conduct Detail Household level survey PRC, DAFO, hired Measurement Survey (DMS) and Socio- survey firm, consultants. Economic Survey of Affected Households (SESAH), Identify vulnerable Households and replacement cost study (RCS). Follow-up disclosure meeting/consultations Discussions and PAFO/DAFO assisted by with affected households to discuss results of consultations after DMS consultants and village DMS and discuss the resettlement policy, completed officials entitlements proposed compensation rates and relocation options, including the Voluntary land donation compensation flow chart (Figure 5) forms AHH consultations to finalize compensation Household level PAFO/DAFO assisted by and sign off. consultation consultants and village officials AHH consultations to finalize negotiated Household level PAFO/DAFO assisted by settlement and compensation in-kind for those negotiations consultants and village AHs who chose this option. officials – with presence of the external monitor at 10% of the discussions/negotiations. Where applicable, include engineering details Discussions at end of PGT, PAFO, DAFO and of negotiated settlement or compensation in- household negotiations consultants kind into the Detailed Design Drawings Preparation of the Land Acquisition and LARP (English and Lao) PGT, consultants resettlement plan (LARP) and submission to distributed at EA/IA and MAF for approval and endorsement to district offices MoNRE then ADB. Posting of summary resettlement plan at district and sub-district Updated PIB if needed, local government offices distributed to AHHs

Update project information booklet (if design has changed from preliminary design phase) Approval of resettlement plan Posting of project ADB documents on the ADB website at Board approval and periodic updates if needed

Participatory Activities/Participants Means of Responsible Institution Communication and Frequency Implementation of LARP Discussions and PRC, PAFO, DAFO and consultations with AHs consultants continuously Monitoring of resettlement plan Reporting on quarterly PRC, PGT (internal) and implementation (internal) and semi- external monitor (EMA). annual (external) basis

143. Using the preliminary engineering designs, potential impacts on land, acquisition needed and compensation and resettlement for the subproject implementation will be brought up for discussion in a meeting with the community in their village meeting hall. It is then necessary to conduct additional specific meetings with relevant AHHs whose land would be affected by the proposed rehabilitation or construction. Safeguard specialists assist project engineers to disseminate and discuss preliminary engineering designs with the community and particularly with affected households (AHHs).

144. The meetings will seek to clarify: (i) the justification of the proposed subproject rehabilitation or construction works considering the anticipated resettlement impacts; (ii) mitigation measures to restore the AHHs’ livelihoods and standard of living; and (iii) assistance from the community or the district administration to plan, agree and implement the mitigation and support measures for AHHs. The consultations should also cover the villages’ views on measures to mitigate the anticipated impacts including compensation, design alternatives to reduce impacts should be discussed at this time. The AHHs should also be advised during consultation meetings, of the data collection process that will take place in preparatory phase when conducting social impact assessment, and particularly the Detailed Measurement Survey. More detail on Consultation is provided in Section VII – Consultation, Participation and Disclosure.

Table 9: Surveys for Resettlement Planning Type of Purpose Details to be Surveyed Survey Socio-Impact • To prepare a profile of the • Preliminary Design Stage. At a minimum, the SIA will Assessment community and potential collect information from a sample of Household Survey (SIA) AHHs. questionnaire, usually covering a 5%– 10% sample of during • To further enhance the AHH, disaggregated by gender and ethnicity. The preliminary entitlement matrix for the purpose of the socioeconomic survey is to provide design REGDF and LARP baseline data on APs to assess resettlement impacts, • To assess incomes, identify and to be sure proposed entitlements are appropriate, productive activities, and and to be used for resettlement monitoring. The scope plan for income restoration of data to be collected includes: • To develop relocation i. Household head: name, sex, age, livelihood or options occupation, income, education and ethnicity; • To initially identify AHHs ii. Household members: number, livelihood or • To identify non-titled and occupation, school age children and school vulnerable APs attendance, and literacy, disaggregated by gender; • To identify extent of iii. Living conditions: access to water, sanitation and land/asset/income losses. energy for cooking and lighting; ownership of • Identify any additional durable goods; and support iv. Access to basic services and facilities. EGDP elements needed. Detailed • To minimize impact of During the finalization of detailed engineering design, the Measurement later influx of outsiders to DMS has to be conducted. This focuses on 100% of those Survey project area AHs whose land will be impacted. The DMS will provide (DMS) • Establish and disseminate the IOL, the overall total cost of land compensation and the cut-off date any other supporting allowances required. For each AP, Socio • To prepare a complete final the scope of the data will include: Economic inventory of the APs and • Total and affected areas of land, by type of land assets; Survey of their assets as a basis for • % impact on land plot to be affected by the project AHHs compensation and • Total and affected areas of structures, by type of (SESAH) assistance structure (main or secondary); • Update AHH socio • Legal status of affected land and structure assets, and economic profiles duration of tenure and ownership; • Quantity and types of affected crops and trees; • Quantity of other losses, e.g. business or other income, jobs or other productive assets, estimated daily net income from informal shops; • Quantity/area of affected common property, community or public assets, by type; • Summary data on AHH, by ethnicity, gender of head of household, household size, primary and secondary source of household income viz-a-viz poverty line, income level, whether household is headed by women, elderly, disabled, poor or ethnic groups • Identify whether affected land or source of income is primary source of income; and • AP knowledge of the subproject and preferences for compensation and, as required, relocation sites and rehabilitation measures. Replacement • To identify the new The replacement cost survey (RCS) will be done in parallel Cost Survey replacement cost of land, with DMS and SESAH activities by collecting information assets and materials in the from both secondary sources and primary sources (direct interviews with people in the affected area, material

area that will be needed to suppliers, house contractors), and from both those affected calculate compensation. and those not affected. The government rates will be • Provisional LARP cost adjusted, as necessary, based on the findings of an RCS. Compensation rates will be continuously updated to ensure that APs receive compensation at replacement cost at the time of compensation payment.

4. Social Impact Assessment 145. Socioeconomic information of the community and potential AHHs will be obtained through a social impact assessment (SIA) and an example of an SIA is at Attachment 4 to this document. The SIA will serve as a referenced baseline of the community’s living conditions and will form part of the monitoring and evaluation data that will assess the extent to which the measures in the LARPs are effective in mitigating land acquisition and resettlement impacts, identifying EGDP elements needed and also includes a Gender Assessment. The SIA is conducted by the project in cooperation with local authorities with support of village representatives and is supervised by the social safeguard specialists.

B. Detailed Design Phase 146. Consultation with AHHs. Before the commencement of the DMS, further consultations with AHHs shall take place. The RCS shall also be conducted during the DMS. The working group (WG) under the lead of the Provincial Resettlement Committee (PRSC) will conduct negotiations with each AHH to reach agreement on compensation, relocation, and livelihood improvement program that are in accordance with this REGDF and ensure these are agreed to with each AHH.

147. Engineering designs are finalized and accepted. The items to be summarized and the essential elements and objectives, policies and strategies as prepared during the preparation phase remain the same, but at this stage the LARP is prepared based on the final detailed engineering design and Detailed Measurement Study (DMS). The DMS is only possible when the detailed designs are being finalized and the extent of land to be acquired accurately defined. The finalized detailed design must be presented to, and discussed with, the community and particularly with AHHs. The subproject’s LARP will be prepared and finalized based on the approved REDGF, DMS, SESAH and the replacement cost survey (RCS) after the completion of the detailed design for each subproject.

1. Socio-economic survey of affected households (SESAH) 148. The SESAH provides the baseline data and information on the affected HHs and benefitting villages of subprojects. ADB's Involuntary Resettlement Good Planning Sourcebook (2012) suggests the following data to be collected:

(i) Data on AHHs (a) demographic (household composition by age, gender, relationship, ethnicity, education levels); (b) family book data (c) social (corporate groups such as family, lineage, clan, community, and non-corporate such as class, ethnic, religious groups); (d) income and assets (individual, corporate, or collective incomes as well as ownership of land, livestock, fishing boats, shops, wood lots, among households) as well as expenditures;

(e) occupation (farmers, teachers, shopkeepers, artisans, laborers, transporters, students, spiritual leaders, etc.); (f) access to public services (health care, water supply and sanitation, education, transport, etc.); (g) gender roles and issues; and (h) attitudes and preferences on resettlement.

(ii) Data on Land and Area (a) map of the area and villages affected by land acquisition;

(b) total land area acquired from AHHs for the proposed project; (c) map of affected area showing AHH impacted land plots if possible; (d) land type and land use; (e) ownership, tenure and land-use patterns; (f) land acquisition procedures and compensation; (g) existing civic facilities and infrastructures; and (h) cultural systems and sites.

149. Each household shall be provided with a unique identifier (HH ID) with a geotag on the land to be affected by the project. Photos of the AHH shall also be taken to identify AHH.

2. Detailed Measurement Study 150. The DMS will be carried out once the preliminary design becomes available at the same time with the socio-economic survey of the AHHs (SESAH), constituting the social assessment, and the SESAH will include gender and ethnic disaggregated data. DMS is conducted in parallel with the completion of the detailed engineering design, as it is this detailed plan which is used as the basis for detailed topographical surveys and will indicate actual canal or route or infrastructure alignment, location and positioning. It is at this stage that AHHs can accurately measure the land that will be acquired or voluntarily donate. Depending on the availability of data and information of the infrastructure, the IRC-working group together with the PRSC-working group can carry out the DMS under the lead of the IRC. The DMS requires a physical measuring of land areas being acquitted or donated, as well as a physical count and inventory of any income producing assets that will be acquired and need to be compensated or which will be donated. The Program Governance Team (PGT) in DoI will help coordinate this task with the detailed design and supervision consultant. It will also have an internal monitoring role.

151. The DMS will collect necessary data to verify the details on affected people and relevant information, which are presented in the final LARPs. The DMS and associated SESAH will survey 100% of AHHs and collect data required to verify the details of AHHs for finalizing the LARP, including details on:

(i) Land ownership and use. (ii) Total landholdings and tenure. (iii) Land, structures and other assets entirely or partially affected by land acquisition or donation for the subproject. (iv) Types and conditions of affected structural buildings. (v) Number and types of trees and crops. (vi) Income losses and proportion of total productive income lost. (vii) Category of affected people (based on vulnerability criteria) and the nature of any further assistance to which APs are entitled.

(viii) High accuracy GPS points of the land to be affected by the project and remaining land which needs an updated title.

152. The DMS covers all fixed assets (i.e. land used for residence, commerce, agriculture including ponds; dwelling units; stalls and shops; miscellaneous structures such as fences, tombs, and wells; trees with commercial value; crops; etc.), which are located in the subproject construction area (e.g. the corridor of impact (COI) for irrigation subprojects). These will be identified, tagged, measured and their owners, and users if a different party, identified. As mentioned earlier, it is possible that asset owner and asset user are different people and both are affected, and both entitled to some compensation. The severity of impact on the affected assets and the severity of impact to the livelihood and productive capacity of persons affected by such losses will also be determined. Information on the AHHs, such as sources of livelihood, income level, and ownership of productive assets will also be gathered as part of the DMS.

153. The announcement of the subproject and the DMS will also signify the cut-off-date for eligibility for any land acquisition compensation. AHHs will be informed of the cut-off-date in prior consultations and information will be included in materials disclosed. The DMS is to be conducted by staff of the provincial and district departments of agriculture (PAFO and DAFO) and local authorities with support of village representatives and in collaboration with the preparatory phase consultants. The consultants will need to provide prior training to the line agency staff.

154. Replacement Cost Study (RCS). RCS refers to the study conducted to determine the amount in cash or in kind needed to replace an asset in its existing condition, without deduction of transaction costs, depreciation, or for any material salvaged, at replacement value, or its nearest equivalent. Based on the government regulations, the PGT will provide technical assistance to the PRSC, PAFO and DAFO to conduct an RCS in the subproject areas during the DMS in order to determine compensation rates reflecting replacement prices for (i) agricultural, residential and commercial land; (ii) different types of affected structures; and (iii) crops and trees. The RCS in the subproject areas is valid for 1 year and will be updated 1 year after the completion of DMS if the compensation and/or assistance are not provided to the AHH. The RCS results will be the basis for estimating resettlement costs.

155. Compensation Amounts Calculated. A sample of the forms prepared based upon the DMS and RCS that are used to calculate all compensation and LARP implementation costs are provided at Attachment 5 to this document. The amount of compensation agreed to with each AHH is detailed on these forms. The forms are also used in monitoring and auditing LARP implementation.

3. Due Diligence for Voluntary Land Donation 156. The project needs to demonstrate and ensure that the AHH are willingly contributing their land in recognition that project benefits more than offset the value of the contributed land and that the project is not dependent upon such land donations. During Due Diligence, the executing and implementing agencies preparing the LARP must demonstrate that the AHH donating land will enjoy such direct benefits, and are obliged to: (i) verify that the land donation is in fact voluntary and did not result from coercion, using verbal and written records (presented in the local language) made available for third party confirmation (EMA); (ii) ensure that land donation will not affect the living standards of affected persons and will result in direct benefits to the AHH; and that (iii) the external monitor is present at least 10% of donation cases during the discussions/negotiations and agreement signing.

157. It is imperative that the act of “donating land” is not abused and treated as a “no cost acquisition” modality. It must only be applied under bona fide cases where the causal link between project intervention and the community and the AHH obtaining a direct benefit can be demonstrated. In cases of land donation, due diligence will commence with full public disclosure undertaken to ensure that landowners are fully aware of project policies regarding LAR, resettlement planning procedures as well as the Grievance Redress Mechanism. Due diligence will require meetings with affected HHs to ensure that they understand their rights; that they wish to donate land as per the project guidelines, and their decisions have been made free from any coercion. The due diligence report must be accompanied by satellite imagery with identified plots and other productive assets, linked to HH IDs, maps and photographic evidence that support demonstration of the benefits. In case of any discrepancy through independent verification, direct meetings with AHHs or the GRM (at project level or directly to ADB), on the voluntary nature of the donations by the EA, External Monitor or the ADB, this option will be withdrawn from this REGDF and eminent domain shall be applied as per the entitlement matrix for all cases without exclusion.

158. Land donation forms will be prepared in Lao language, signed by the AHHs and witnessed by village, project and district officials. The exact location (with satellite overlay and GPS reference), area and type of land being contributed must be properly measured and expressed as a percentage of the affected household’s affected plot and the value of the donation on the form. All land acquisition actions under the Project, and particularly under land donation, and any land for land exchanges will be subject to verification by an independent external monitor (see section XII.B. for more details) and due diligence carried out by ADB. Verification will cover an adequate representative random sample of the affected households who voluntarily donated their land. Depending upon the number and scale of each SP, this verification may be done through the EM as agreed between the EA and ADB.

159. Once the informed consent of the affected people has been confirmed in writing, both husband and wife of the AHH sign the form in the presence of the third party, and the AHH keeps one copy of the signed form.

160. Implementation of sub-projects involving donated land starts only once the assigned authority (village committee, resettlement committee, etc.) has approved the signed land donation forms and ADB has provided the letter of no-objection (NOL) for all donations.

161. Preparing the Resettlement Plan. Where the design initially identifies land acquisition and resettlement requirements in accordance with a category B assessment, a LARP is prepared based on initial surveys and the policy requirements in the REGDF. Once the draft final design is available a LARP shall be prepared for each affected subproject and shall follow the table of content as outlined in ADB’s SPS (2009):

(i) Executive Summary (ii) Project Description (iii) Scope of Land Acquisition and Resettlement (iv) Socioeconomic Information and Profile (v) Information Disclosure, Consultation, and Participation (vi) Complaints and Grievance Redress Mechanisms (vii) Legal and Policy Framework (viii) Entitlements, Assistance and Benefits (ix) Relocation of Housing and Settlements (x) Income Restoration and Rehabilitation (xi) Resettlement Budget and Financing Plan

(xii) Institutional Arrangements (xiii) Implementation Schedule (xiv) Monitoring and Reporting

162. More details of the information required under each section of the LARP is contained in Attachment 3 of this document.

163. The LARP will include the cost estimates of compensation and other activities resulting from livelihood restoration or relocation. Once explained and accepted by the community, the LARP is submitted to the PRSC and the provincial natural resource and environment agency (PoNRE). The EA may then submit to MNRE for approval before copying to ADB. It is based on the DMS and replacement cost study (RCS) in accordance with the approved REGDF.

4. Consultations after Detailed Design 164. Details of all meetings held with the community to discuss the detailed design will be reported in the LARP. The details must include as a minimum:

• Record of the households attending with names of husband and wife and record of agreement or disagreement with the detailed design • Record details of issues, changes required to engineering designs, other suggestions • Conduct participatory cost replacement study • Details of any complaints received through the Grievance Redress procedures • If no objections or complaints, the Detailed Design is used to conduct a Detailed Measurement Study – this identifies how much land is required from the AH. • The SESAH details which identifies the socio-economic characteristics of the household associated with the land acquisition. • The finalized LARP is resubmitted to MoNRE for “No Objection” and then sent by the EA to ADB for approval to proceed to SP implementation. • Each AH is asked to sign an acknowledgement of the total LARP compensation to be received, and or a Voluntary donation Form or Land Exchange Agreement (in cases where the AH has accepted a replacement plot as part of the negotiation) which is witnessed by the Village Chief and also the DAFO or an agreement on the negotiated settlement or an agreement on compensation in kind. These signed forms are attached to the final detailed design.

X. LARP IMPLEMENTATION PROCESS

165. The implementation of the approved LARP will involve the tasks outlined below. The SP construction work cannot be started until the compensation and other assistance are provided to the AHH and ADB have been informed that this has occurred.

166. Compensation Payment. After signing a contract with AHH, the Provincial Department of Finance (PDF) through PRC will request compensation budget. Then, PRC working group in coordination with PPIT working group will make compensation payments to AHHs. An external monitor to be recruited by the PGT will observe this activity.

167. Relocation. Under the SRIWSM project relocation of potential AHHs is not anticipated. As per SP selection criteria to be used throughout project implementation, any SP requiring physical displacement of an AHH will not be accepted, and as such, a realignment will be required if this situation arises.

168. Livelihood Restoration. The livelihood restoration suitable for each AHHs will be tailor- made according to the AHH needs and opportunities. In general, livelihood restoration for severely AHHs in the command area will be based on dry season cropping similar to vulnerable AHHs, whereas livelihood restoration for all severely AHHs outside the command area will be implemented by a consulting firm/NGO to be recruited by PGT as part of LARP implementation. It is envisioned that the livelihood support will be linked to output 3 of the project. Support to severely AHHs can be e.g. in livestock raising or fishponds. Livelihood restoration activities and/or support are identified through a participatory process with each AHH. This consultation can take place during the conducting of the SESAH and DMS. It is important that both husband and wife are part of this participatory consultation, and following individual AHH consultations, a meeting of all AHHs should be called to discuss the findings and needs for the livelihood restoration support. The Project national safeguards specialist will oversee and monitor the implementation. Some livelihood restoration activities will carry over through the subproject implementation period but must be commenced before impact occurs.

A. Consultation, Participation and Disclosure 169. Public consultation, participation and disclosure activities form a continuous process during the preparation, implementation and operation phases. A Project Information Booklet (PIB)14 will be prepared and disclosed to the AHH during public consultation before DMS. The REGDF special measures referred to earlier require that information dissemination and consultation is carried out in the appropriate language(s). The consultation activities will ensure that:

i) Consultation takes place early and happens continuously throughout the duration of the project in order to ensure that Affected Persons (APs) are fully informed. ii) Information is relevant and disclosed in a timely manner. Such information should cover the (a) nature of the project, (b) the scope of and reason for land acquisition, (c) the resettlement objectives and entitlement matrix (d) the choices available regarding the future, (e) the right of the displaced to participate in resettlement planning and implementation, and (f) the grievance mechanisms to be put in place. iii) There should be no intimidation or coercion of APs. iv) Consultation should be gender-inclusive and tailored to the needs of the disadvantaged and vulnerable. v) All relevant views should be considered in the decision-making process.

B. Principles to Apply 170. Public consultation will be used to manage the dialogue between the project proponent and the public and is undertaken to improve decision-making and understanding through active involvement of affected individuals and groups. Community consultation largely focuses on the different activities involved in resettlement planning. It includes, but is not limited to:

i) Project information; ii) AHH entitlements; iii) Grievance process; and iv) Project implementation schedule.

14 The Project Information Brochure must be written in Lao and contains the following brief information: (i) Project background, specifically about civil works to be done; (ii) results of the IOL; (iii) entitlements due to the AHHs; (iv) basis for computing compensation for affected assets; (v) schedule of delivery of entitlements and displacement; (vi) grievance redress mechanism; and (vii) contact persons at PGT, PPIT.

171. Consultation promotes the involvement of AHH in project planning and implementation. Community consultation should include the following main features:

i) Access to information: adequately and timely access to subproject information for all. ii) Accountability: relevant committees and WGs should be procedurally and regularly answerable to villagers being affected. iii) Conflict management: conflicting interests between different groups of stakeholders require a mediating and facilitating component within the consultation strategy. iv) Transparency: all subproject activities to be publicly visible including the decision-making.

172. People affected through land acquisition and/or construction work by the subproject have to be involved in resettlement and compensation planning through consultation at village and household levels during the preparation of the LARPs. Consultation regarding potential mitigation measures for resettlement requirements during the study and implementation phases increases the chances for a collaborative understanding between involved governmental staff and villagers.

C. Entitlements 173. Under the project policy, there are seven types of APs entitled for compensation. The same APs can belong to two or more of these groups, including non-entitled for land and assets, but entitled for vulnerability assistance.

No. Categorized APs Entitled APs People/households whose productive agricultural land is in part or in total affected (temporarily or 1 permanently) by the acquisition of agricultural land assets by the subproject. People/households whose residential or commercial land is in part or in total affected (temporarily or permanently) by the subproject, and the land is not used for agriculture, 2 regardless of whether the people/households are direct beneficiaries of irrigation water from the project. People/households whose permanent houses and secondary structures are in part or in total 3 affected (temporarily or permanently) by the subproject. People or households whose businesses or source of income (i.e. employment) are affected 4 (temporarily or permanently) by the subproject. People or households with non-irrigated crops (annual/perennial) and trees are affected by the 5 subproject. People or households who stand to lose access to common property resources and community 6 assets (temporarily or permanently) due to the subproject. Vulnerable people who are dependent on the land and assets for their income and livelihoods or 7 will be disproportionately affected due to the losses from the subproject.

174. Entitlements are related to the subproject resettlement principles, policies on compensation and other criteria. Compensation to be paid for affected assets will be based on the principle of replacement cost, which is the amount needed to replace an affected asset without depreciation and includes taxes and/or transaction costs. Entitlements and conditions are also determined by official notices issued from the respective provincial Governor’s Office, and cover different types of land, structures, tree crops and other allowances. The entitlements declared by each province will be reviewed and factored into the LARP cost for each SP. If the PRC do not address a specific category of loss, the PGT consultants will identify the replacement value and negotiate inclusion of the category with the PRC. The Entitlement Matrix is presented in Table 10 below.

175. The entitlements are applied against the inventory of losses as updated through the DMS. Unit rates are applied to land and other asset losses and an overall compensation figure per AHH is calculated. Attachment 5 details the summary forms used to calculate the total compensation. These calculations are discussed with each AHH and the Affected Persons (APs) sign a summary of their compensation amount. It must be acknowledged that the compensation amounts contained in the LARP are time-sensitive and the negotiated settlement will have to be reconfirmed if the delay between the registration of eligibility of AH and implementation of the compensation plans is more than 12 months.

Table 10: Entitlement Matrix Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures I. LOSS OF LAND A. Legal owners or No compensation for land. Temporarily legalizable/recognized Cash compensation for loss Compensation for land for Affected right; and those of income until restoration is temporary use including net Agricultural, covered by customary completed, standing crops income from standing crops Residential rights. and trees, and the cost of soil and trees until maturity at Or restoration and damaged replacement cost; and land is Commercial infrastructure during the time returned to legal owner/user Land of disturbance (during to pre-project condition, and construction). in time for next cropping Users without No compensation for land. cycle. formalized rights They are entitled to cash compensation for non-land If temporary disturbance is assets (standing crops, trees, more than 1 year, the APs structures) at replacement have the option to sell the cost. land to the proposed Project at replacement cost which will be assessed during resettlement plan preparation or continue to get compensation for net income from standing crops and trees lost until maturity. B. Legal owners or a) As a priority, compensation AHH will be compensated at Permanently legalizable/recognized will be through “land for land replacement value for the Affected rights; and those arrangements” satisfactory to land. AHHs may opt for cash Agricultural covered by customary APs (for agricultural land – compensation for the affected Land rights.. equal size, quality and land equivalent to productive capacity; for replacement cost if alternative residential land - equivalent or suitable land is not size, quality and accessibility; available. AHH must and for commercial land - document how the cash equal size and accessibility to compensation will be used to customers). restore their livelihood.

b) Cash compensation for Voluntary donation is allowed affected structures at to a threshold of 9% of the land replacement cost without plot to be affected by the deduction for depreciation or project. Households who can salvageable materials. Cash also choose to enter into compensation for crops and negotiated settlements or the trees project can realign the canal to avoid impact. Vulnerable

Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures households and severely affected households are not eligible to donate land. AHH can choose to receive compensation in-kind, such as for example the development of unaffected land belonging to the households to increase its productive potential on the condition that this is comparable to the cost of compensation due to the AHH (or more).

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

C. Legal owners or Compensation for land at Compensation for residential Permanently legalizable/recognized replacement cost. land at replacement cost. Affected rights; and those Residential covered by customary Cash compensation for Compensation costs will be Or rights. affected houses and assessed during resettlement Commercial structures at replacement plan preparation. Cash Land cost without deduction for compensation for standing depreciation or salvageable crops, trees and other materials. Cash assets/improvements. compensation for trees at current market values. II. LOSS OF HOUSES & OTHER STRUCTURES Affected Owners identified a) For permanent houses and If a house is affected, re- Houses and during the census. structures, cash alignment of the irrigation Structures Tenants renting compensation equivalent to canal is required houses/shops/ replacement cost without structures depreciation of salvageable A lump sum shall be paid as materials. shifting allowance to a relocated household, b) For toilets, latrine toilets including amounts for build based on national damages and reconstruction. design specifications of The allowance will vary Ministry of Health (under according to house size. The project Output 4). allowance rates are regulated by the PRC. These will be c) For temporary or moveable reviewed by the consultants structures, APs will receive an and discussed with the AP. If allowance for damages and deemed inadequate to defray reconstruction as updated actual costs, the rate will be and approved by the PRC. renegotiated with the PRC.

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

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

The entitlement will be reviewed against any updated regulations issued by the respective PRC, ad discussed with the affected Village Committee. V. INCOME RESTORATION

Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures A. Materials For relocating APs that The Project owner must either Applies to all APs with Transport are required to move ensure that all AP materials, permanent houses/structures Allowance back or relocate to equipment and belongings The PRC will either direct the other areas are transported to the new project owner to provide all location in entirety, or transportation, or, calculate guarantee sufficient cash the amount for the transport payment to the AP to cover all of household effects, transportation costs. salvaged and new building B. Housing For relocating APs that The PRC will revise and materials to new sites.. Transition are required to move update the per capita Allowance back or relocate to “disturbance allowance” Temporary structures are to other areas. be relocated during construction by the contractor and return to their original location after completion of works. Any damage to the temporary structures needs to compensated by the contractor. C. Business For owners of Business a) Lump sum will be paid to The PRC will revise and Transition identified during census compensate for loss of update compensation rates Allowance business and restoration of for business transition and income. loss of income. The PGT b) For employees, cash consultants will review the compensation for lost salary / updated rates in conjunction wages for each day they with tax and accounting cannot work while business is records of the affected reorganizing at new site. In business to ensure adequacy the case where the business and where insufficient, will cannot resume following renegotiate with the PRC. relocation, allowance provided for 6 months. All payments will be made through transfers to the bank account of the AHH (name of husband and wife). D. Special APs belonging to a) Vulnerable households in Identification of vulnerable Assistance vulnerable groups the command area are AHHs will be done in for Socially including (i) female eligible for first dry season cooperation with village or headed households with crop seeds and materials authorities. Vulnerable Economically dependents; (ii) disabled free-of-charge in conjunction households , are not eligible Vulnerable household heads; (iii) with training and preference for donation of land. Special Households poor households; (iv) in technology demonstrations. assistance is provided to APs dependent on elderly households who who would face economic the affected have no other means of b) Vulnerable households will stresses due to the loss of productive support; (v) landless be entitled to a special land. Members of ethnic land households. allowance plus additional groups are not eligible unless cash and other assistance they qualify for special . based on identified needs and assistance as being socially priorities. HHs with more or economically vulnerable as than one factor of vulnerability defined within item D. (e.g.: old age, poverty, disability) being entitled to an a) Contracted company/NGO allowance for each factor. to provide extension services

Type of Compensation and Entitled Persons Implementation Issues Loss Rehabilitation Measures Eligible for livelihood and and training for dry season income restoration program. cropping.

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

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

Absentee land owner households, who are verifiably not reliant of the productive land lost to the project, are not regarded as vulnerable households. E. Livelihood Severely affected and Severely affected and Severely affected and restoration vulnerable households vulnerable HH will be vulnerable HHs to be consulted as to livelihood identified during DMS/SESAH preferences and possible and prioritized thereafter. options. Provision of land and creation of new livelihood Contracted company/NGO to options and vocations, provide extension services identification of new income and training for livelihood generation activities and restoration program with a relevant skills training to clear restoration plan / upgrade livelihood levels to at business plan with milestones least pre-project levels. Any to reach pre project levels. additional allowances will be regulated by the PRC. Livelihood restoration plans must be agreed to in writing by the AHHs and approved by the PRC, prior to construction commencement

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

D. Grievance Redress Mechanisms 176. This section presents the information and arrangements for addressing conflicts and appeal procedures regarding eligibility and entitlements as well as the implementation of the resettlement activities.

177. Grievance and redress mechanism is provided for in ADB Accountability Mechanism (2003) and is confirmed in Articles 18 to 24 of Decree 84 (2016). Under the Project,

63 communications with APs will be designated to the PPIT through the Project Implementation Consultants (PICs) in collaboration with Provincial Project Implementation Team (PPITs) that will be established at provincial level, and provincial and district resettlement committees. One of the important functions of the PGT is to ensure that the APs are aware of the procedures in filing complaints or grievances that may arise during LARP implementation so that unnecessary delays in civil works construction could be avoided. Upon mobilization, the PGT will assign a desk unit to receive complaints from the APs or stakeholders related to environment and social safeguards. Grievance and Redress Units (GRUs) at the provincial and district levels will be mobilized, and they will be composed of the members of resettlement committees. The Village Committees in each target village will also be advised of their “first stop” role in relation to Grievance Redress15.

178. All AHHs will be made fully aware of their rights, and the detailed procedures for filing grievances and the appeal process will be published through an effective public information campaign. A primer on grievance and redress mechanism and appeals process will be disseminated to APs during the DMS and the grievance redress mechanism and appeal procedures will also be explained in the project information booklet (PIB) that will be distributed to all AHHs.

179. AHHs grievances will be received and solutions for AHH concerns and grievances on land acquisition and the implementation can be addressed under the grievance procedure provided in the approved REDGF/LARP. AHHs complaints can be made verbally or in written form. In the case of verbal complaints, the committee on grievance will be responsible to make a written record during the first meeting with the AHHs. All project related grievances are to be at no charge to the AHH or any other individual or group who believe that they have been negatively affected by the project implementation.

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

181. Grievances or complaints from affected persons will be solved in a timely and satisfactory manner. The affected persons can submit their grievances to GRUs either in verbal or written form, and the process is at no cost to them. The procedural steps for filing and resolution of grievance and complaints are based upon the requirements set out in Decree 84 (2016) and are described in Table 11 below.

Table 11: Grievance Redress Mechanism Procedure Stages Activities/Procedures At the village level, AP files a complaint/grievance verbally or in writing to the Stage 1 Village Committee to seek faster resolution at village level. If unwritten the VC will record details of the complaint and provide consideration based on their traditional method of conciliation and mediation. Resolution is within 5 days after the complaint/grievance was received. If no solution or understanding is reached within 5 days, the AP can bring the Stage 2 complaint at the district level. The GRU at the district level will meet the AP, and

15 This will include training on how to record details of grievance cases, maintain records, and follow up and monitoring on actions taken and decisions made.

resolve within 10 days after receiving the complaint. If the AP is an EG and requires assistance, representatives from the District LNF shall be appointed to assist by the DRC. Stage 3 If the AP is still unsatisfied or has not received any decision from the GRU at the district level, he/she can seek redress at provincial GRU (within the PRC) that should decide the issue in 10 days. If the AP is an EG and requests assistance, a representative from the provincial LNF will be appointed by the PRC. If still unsatisfied with the decision of GRU at the provincial level, the AP may lodge Stage 4 an appeal with MoNRE and the PGT will monitor to ensure each complaint is resolved within 10 days after receiving the appeal. Stage 5 As a last resort, the AP may request the case be heard by either the National Assembly or the local Court of Law.

182. AHHs have the right to directly discuss their concerns or problems with the ADB’s Environment, Natural Resources and Agriculture Division, Southeast Asia Department through the ADB Lao Resident Mission (LRM). If AHHs are still not satisfied with LRM’s responses, they can directly contact the ADB Office of the Special Project Facilitator. The Office of the Special Project Facilitator procedure can proceed based on the accountability mechanism in parallel with the project implementation.

E. Implementation Arrangements 183. MAF, through the PGT (DoI), will continue to oversee the LARP activities of the concerned PAFO and DAFO and provide technical assistance if necessary.

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

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

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

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

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

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

190. Capacity building will be provided in resettlement planning for the newly established implementing stakeholders who will be involved and responsible for the final preparation and implementation of resettlement plans. Costs for capacity building in respect of social safeguards have been incorporated into this REGDF. It is recommended to organize safeguard related training immediately on project start-up and before any REGDF activities commence, and ensure the following topics are covered:

(i) Latest policies, decrees and technical guidelines. (ii) Grievance Resolution (iii) Basic principles of resettlement planning and the conceptual approach on entitlements for losses. (iv) Restoration and rehabilitation of livelihoods. (v) Institutional requirements. (vi) Staff and training requirements. (vii) EG sensitivity and EGF elements.

191. The IAs, if necessary, may contract extension services and training for livelihood restoration program for the severely AHHs and vulnerable AHHs. The service provider is to work closely with each PAFO/DAFO in the project Provinces for the provision of the services.

F. Implementation Schedule 192. The draft LARP for each subproject will be prepared following the completion of preliminary design for that subproject (i.e. preparation phase). A detailed implementation schedule of the various activities to be undertaken will be included in each LARP. This schedule will be updated following finalization of the detailed design and disclosed in the final LARP and the PIB. The schedule for all resettlement activities must be agreed and settled by all stakeholders before resettlement activities begin.

193. Satisfactory payment of compensation and provision of other rehabilitation entitlements and relocation, if required under the LARP, will be completed before a ‘no objection’ can be

66 provided by ADB within 30 working day prior to commencing civil works construction under each subproject.

XI. RESETTLEMENT/COMPENSATION BUDGET

194. LARP compensation and resettlement costs are included in the overall project cost and are financed within the ADB Loan/Grant. Cofinancing will be available to fund technical assistance and capacity building for LARP preparation, implementation and monitoring, including budget for social surveys and the census and inventory of losses. Budget estimates for LAR activities, administrative expenses, operation costs, and internal monitoring will be finalized after the final detailed design and attached to the LARP prepared for each subproject.

195. PAFOs and the PGT will ensure that the LAR costs are included in overall subproject cost estimates. These cost estimates will also include adequate provision for contingencies. The LARP will include the breakdown for each type of loss with corresponding cost estimates reflecting replacement cost or current market values and will also include a detailed schedule and procedures related to flow of LARP funds.

196. Consultations conducted in May 2019 in 3 subprojects indicated that many of the AHH who expressed their preference for negotiated settlement or compensation in-kind are seeking minor in-kind construction works to be implemented to either improve the productive capacity of their affected land or other land plots. Examples of such works include installation of an additional drain culvert, provision of water through a pipe, to levelling of a non-affected land plot. Such construction works will be mutually agreed and put in writing during consultation meetings and thereafter be included in the contract with the construction company or as contract variations albeit paid from the resettlement budget as they are compensatory measures. The cost of these construction works are not included in Table 12 but must be comparable to the compensation entitlement due to the AHHs and therefore should not affect the overall cost of either the construction contract or the resettlement budget.

197. Compensation payments will utilize two methods, namely cash compensation via bank transfer and in-kind compensation as described below.

1. Cash Compensation via Bank Transfer 198. Based on the final compensation calculation, a compensation payment form will be prepared detailing the compensation, its elements and the corresponding amounts, and the total. The compensation form will be signed in two steps:

• The form will require the affected household to sign for agreement to the compensation amount • The form will require the affected household to sign for receipt of the full amount to the designated bank account after the transfer has been received into the AHHs account. In the absence of this, a proof from the bank of the transfer and receipt into the AHHs account will suffice as evidence of compensation completion. 199. When preparing the compensation agreement forms, each affected household will be interviewed and requested to designate a bank account if they have one. If not, one will be set up by the project and the details will be provided on the form, including a photocopy of the first page of the bank account that provides the bank details and account holders. The bank accounts will be opened at a local branch. For married couples, accounts and payments will be made in the name of both spouses and with both signing the receipt of compensation.

200. Following the first signature by the affected household, the form will be signed by the PMU as designated representative of the EA authorizing the payment and the transfer to the bank account of the affected person.

201. Documentary proof of the transfer will be obtained by the PMU and will be annexed to the compensation form when it is provided to the affected household for signing to verify that transfer is complete and that the full amount has been received.

2. Compensation Payment via In-kind Compensation 202. In case of in-kind compensation (including in-kind measures agreed during negotiated settlement), a similar compensation form will be prepared clearly describing the affected property, the cash compensation due based on the entitlement matrix, and the agreed compensation in kind (including the established market value of such which should not be less than the established compensation entitlement) and annexing relevant documentation such as land title, etc. The compensation form will specify the handover date and the responsibilities of the affected household after the handover date. As for cash compensation via bank transfer, the affected household will be required to sign the compensation form in two steps:

• The form will require the affected household to sign for agreement to the compensation in kind • The form will require the affected household to sign for receipt of the compensation (preliminary handover) with a final handover after the completion of any defect notification periods or liability periods of at least 6 months to ensure that quality is met for any interventions. 203. Following the first signature by the affected household, the form will be signed by the PMU as designated representative of the EA authorizing the transfer of ownership to the affected person.

204. Documentary proof of the transfer of ownership will be obtained by the PMU and will be annexed to the compensation form when it is provided to the affected household for signing to verify that transfer is complete and that the full compensation has been received after the final handover.

Table 12: Estimated Resettlement Budget Total ($) Per Annum Source No. additional subprojects 12 Cost of SIA/DMS/SESAH per SP $17,000 $204,000 ADB Estimated LARP compensation amount $10,000 $180,000 GoL needed per SP as lumpsum compensation amount including land, trees and VHH support (total 18 subprojects) PRC, PAFO, DAFO SS training 12 districts @ $6,000 ADB $500 Year 1 (RSPs) 4 $30,000 Year 2 3 $82,500 Year 3 3 $82,500 Year 4 3 $82,500 Year 5 3 $82,500 Year 6 0 0 TOTAL $390,000

Table 13: Estimated EGDF Budget Budget Item Estimation Basis Total ($) Source EGDP Elements Budget: Translators, Estimate support needed for 50% of villages. 18 schemes, average 5 ADB additional support villages per SP, 90 total. 45 (50%) villages require EGDP elements. Allow $1000 per village Year 1 4 $10,000 Year 2 4 $10,000 Year 3 4 $10,000 Year 4 3 $7,500 Year 5 3 $7,500 Year 6 0 0 TOTAL $45,000

B. Staffing Requirements and Budget 205. Although resettlement and EG development are unlikely to be significant issues in the implementation of the proposed project in view of the identification criteria and the pre-screening activities already undertaken during the preparation phase, SPs selected for implementation will still require screening and preparation phase, and due diligence conducted to both voluntary land donations and involuntary land acquisition. In order to address the concerns, a team of one international and one national social safeguard specialists will be engaged to assist the PGT to ensure that resettlement procedures are followed in accordance with laws of Lao PDR and policies of ADB (with the option for the no-objection of selected specialists). The national level team will be supported by fulltime Provincial Social Safeguards Advisors in each of the participating Province.

206. The specialist team will assume responsibility for the training of PGT PAFO, DAFO and PRC staff in ADB safeguards and in particular resettlement and EG issues, LARP preparation and procedures. They will also be responsible for establishing procedures in respect of any resettlement that might be needed associated with rural infrastructure rehabilitation.

XII. SUPERVISION, MONITORING AND EVALUATION

207. The monitoring will be split into two components:

A. Internal Monitoring 208. PAFOs, in collaboration with DAFOs and resettlement committees, are responsible for internal monitoring of LARP implementation. PAFOs, with DAFO assistance, will supervise the resettlement activities and provide quarterly reports to the NPC for inclusion in the Quarterly Progress Report, which is circulated to ADB and members of the Project Steering Committee. The NPC will ensure that the loan implementation consultants include in their progress reports the status of the LARPs, and information on location and numbers of people compensated, compensation amounts paid by item, in-kind compensation provided and assistance provided to APs. All reports will be submitted in English. ADB will also monitor these activities in its regular supervision missions during the period of project implementation.

209. Internal monitoring indicators will include:

(i) Compensation and entitlements are computed at rates and procedures as provided in the approved LARP.

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

B. External Monitoring 210. An External Monitoring Agency (EMA) contractor will be engaged by the PGT to undertake independent monitoring. This organization will carry out implementation monitoring, with focus on assessing voluntary land donation procedures and post-resettlement impact evaluation to assess whether impacts of the proposed project have been mitigated adequately and the pre-project standard of living of APs have been restored as a result of resettlement and project activities.

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

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

XIII. LARP AUDIT

213. In order to confirm bona fides in all land acquisition cases, voluntary and involuntary, the PGT must undertake in 30% of the subprojects at least a 10% case audit of all AHHs who are supposed to receive compensation payments, 20% sample of severely impacted households during which confirmation of the expected benefits of irrigation will be determined as well as a 20% case audit of any AHHs agreeing on land donation. Depending upon the number and scale of LARPs prepared under the SRIWMP, the audit may either be done internally, through a joint effort between the PGT and PPIT (PAFO), or, if warranted, the audit is to be included in the terms of reference for an External Monitor hired by the PGT to monitor LARP implementation, including any EGDP elements. In the event that the audit finds irregularities in the implementation of the subprojects, a full audit of all subprojects shall be conducted by the External Monitor.

Attachment 1: Example of Minutes of Voluntary Donation

Initial Agreement in Principle to Donate Land

We, ……………………………………………………………………………………………… (name of landowners husband and wife), residents of house number ……………village. ………...... district, …………...... province, hereby self- declare the following land as a donation to the Sustainable Rural Infrastructure and Watershed Management Sector Project as per the Preliminary design. We understand that the estimated value of the land based on provincial compensation rates which are not up-to- date. We also understand that the estimates below will be clarified and subject to final approval upon dissemination of the final Detailed Design: Total Area Area Needed by Estimated Intend to % of in m2 the Project in m2 Market Contribute impact Replacement for use of area Value of the Land Project (√) Productive land area (irrigated) Productive land area (non-irrigated) Non-productive land area Land for fish pond Other land Overall, we foresee that the Project will cause (please select one of the options below): (1) No impact on our livelihoods, and will provide the opportunity to increase our income compared to pre-project level, and agree that no compensation is required for loss of land.

(2) There is an adverse impact on our livelihood and we would like to receive compensation: We have been advised of and understand the Project’s Grievance Resolution Process. We have also been advised of and understand the Project policies as follows: • The land contributed does not adversely impact (reduce) the income and livelihoods of the household when compared to the benefits of the Project; • The households have the right to refuse to donate the land for the Project and receive compensation to the amount indicated above through negotiated settlement; • There is no physical relocation of household due to the project;

• Vulnerable households are not disadvantaged by exclusion from the Project, and are further supported to be able to increase their income and livelihoods; • Detailed Measurement Survey will be undertaken for all identified AH to enable the determination of whether there are impacts or not; • In case of canal with associated structures, such as access roads, no more than 9% of overall land plot can be contributed for the Project without compensation; • The affected household has recognized legal tenure, the land is not being occupied and/or used by any other party and the land is not in dispute for its ownership; and • Our decision to contribute assets has been done fairly, freely and without any coercion.

Signed:……………………………………. (Husband) …………………………………. (Wife)

Full printed name:……………………… (Husband) …………………………………….(Wife)

Witnessed by:…………….... (signature Head of Village) ……………………..… (Full name)

Witnessed by:………………………..… (signature PAFO/DAFO rep)……….…..(Full name)

Dated: ……………………. Stamped …………………………………………

Negotiated Settlement Agreement

The following agreement has been made on the ……………. Day of …………………. month, of ………………….. year, between Mr/Mrs/Ms…………………………(names and ages) ………… herein referred to as the “Owner”, living in ………………………………..Village ……………………………… district,………………….. province, and the SRIWSM project represented by the Ministry of Agriculture, Dept. of Irrigation (DoI).

The Owner hereby declares that the assets described below legally belong to the Owner, and that the Owner further agrees to sell16 , or transfer, these assets for the agreed compensation, to the Project in order that the SRIWMP … subproject may be implemented.

Asset Details Unit Agree Agreed Qty Agreed Total (Kip) Unit Price (Kip) Structures

Trees/Crops

Land

Other

Total Kip

It is agreed between the owner and the Project that:

(Compensation will be made in Cash for the total compensation of ……………… Kip ………………….(in figures and words), which will be paid to bank account number …………………….. ..on bank account name of ……………………… of the ………... bank before the removal of any of the assets listed above and if not, this agreement becomes null and void.

Compensation will be made in kind through the following actions to be taken by the project:……………………………………………………………………………………………………… ……………………………………………………………………………………………………………… ………………………………………………

Signed as agreed as above (MAF, DOI and District seals).

…………………………

…………………………… …..…………………….. ………………………….. The Owner(s) The Project Representative District Officer (Witness) (MAF/DOI)

16 If being granted to the Project, insert “0” in the Agreed Total column.

Attachment 2a: Resettlement and Land Acquisition Checklist Not Not Remarks Involuntary Resettlement Effects Yes No Know Applicab n le 1. Will the activity require permanent or temporary land acquisition? 2. Is the site and land needed for acquisition known? 3. Is the ownership status and current usage of land to be acquired known? 4. Is the area of land required from each affected HH known? 5. Will land be acquired involuntarily? 6. Will land be acquired voluntarily? 7. Will easement be utilized within an existing Right of Way (ROW)? 8. Was1 any facility constructed recently on new land in anticipation of obtaining further assistance for the facility from this ADB project? 9. Was the land acquired legally under Lao Law? (unknown = No) 10. Are there any outstanding complaints about the land used or acquired for the existing facilities? 11. Will the activity require permanent or temporary relocation or displacement of any people (titled or non-titled)? 12. Are there any non-titled people (squatters) who live at the site or within the COI / Right of Way / public land? 13. Will there be any loss of housing or accommodation or other residential structures? 14. Will there be any loss of residential land? 15. Will there be any loss of vegetable gardens or agricultural plots? 16. Will there be any losses of crops, fruit trees or private structures? 17. Will there be loss of income sources and means of livelihoods due to land acquisition? 18. Will any small or informal businesses have to be moved or closed temporarily or permanently?

Not Not Remarks Involuntary Resettlement Effects Yes No Know Applicab n le 19. Will there be temporary or permanent loss of employment as a result of the closure of any businesses resulting from the renovation? 20. Will people lose access to natural resources, communal facilities and services? 21. If land use is changed, will it have an adverse impact on social and economic activities? 22. Will access to land and resources owned communally or by the state be restricted? Information on Displaced Persons: 23. Any estimate of the likely number of persons that will be displaced by the Project? [ ] No [ ] Yes If yes, approximately how many? ______None______24. Are any of them poor, female-heads of households, or vulnerable to poverty risks? [ ] No [ ] Yes 25. Are any displaced persons from indigenous or ethnic groups? [ ] No [ ] Yes

Attachment 2b: Indigenous Peoples Impact Screening Checklist for Sub-Projects KEY CONCERNS YES NO NOT KNOWN Remarks

A. Indigenous Peoples Identification 1. Are there socio-cultural groups present in or use the project area who may be considered as "tribes" (hill tribes, schedules tribes, tribal peoples), "minorities" (ethnic or national minorities), or "indigenous communities" in the project area? 2. Are there national or local laws or policies as well as anthropological researches/studies that consider these groups present in or using the project area as belonging to "ethnic minorities", scheduled tribes, tribal peoples, national minorities, or cultural communities? 3. Do such groups self-identify as being part of a distinct social and cultural group? 4. Do such groups maintain collective attachments to distinct habitats or ancestral territories and/or to the natural resources in these habitats and territories? 5. Do such groups maintain cultural, economic, social, and political institutions distinct from the dominant society and culture? 6. Do such groups speak a distinct language or dialect? 7. Has such groups been historically, socially and economically marginalized, disempowered, excluded, and/or discriminated against? 8. Are such groups represented as "Indigenous Peoples" or as "ethnic minorities" or "scheduled tribes" or "tribal populations" in any formal decision-making bodies at the national or local levels? B. Identification of Potential Impacts 9. Will the project directly or indirectly benefit or target Indigenous Peoples? 10. Will the project directly or indirectly affect Indigenous Peoples' traditional socio-cultural and belief practices? (e.g. child-rearing, health, education, arts, and governance) 11. Will the project affect the livelihood systems of Indigenous Peoples? (e.g., food production system, natural resource management, crafts and trade, employment status) 12. Will the project be in an area (land or territory) occupied, owned, or used by Indigenous Peoples, and/or claimed as ancestral domain? C. Identification of Special Requirements: Will the project activities include: 13. Commercial development of the cultural resources and knowledge of Indigenous Peoples? 14. Physical displacement from traditional or customary lands? 15. Commercial development of natural resources (such as minerals, hydrocarbons, forests, water, hunting or fishing grounds) within customary lands under use that would impact the livelihoods or the cultural, ceremonial, spiritual uses that define the identity and community of Indigenous Peoples?

KEY CONCERNS YES NO NOT KNOWN Remarks 16. Establishing legal recognition of rights to lands and territories that are traditionally owned or customarily used, occupied or claimed by indigenous peoples? 17. Acquisition of lands that are traditionally owned or customarily used, occupied or claimed by indigenous peoples?

Attachment 3: Outline of a Resettlement Plan

1. This outline is part of the Safeguard Requirements 2. A resettlement plan is required for all projects with involuntary resettlement impacts. Its level of detail and comprehensiveness is commensurate with the significance of potential involuntary resettlement impacts and risks. The substantive aspects of the outline will guide the preparation of the resettlement plans, although not necessarily in the order shown.

A. Executive Summary

2. This section provides a concise statement of project scope, key survey findings, entitlements and recommended actions.

B. Project Description

3. This section provides a general description of the project, discusses project components that result in land acquisition, involuntary resettlement, or both and identify the project area. It also describes the alternatives considered to avoid or minimize resettlement. Include a table with quantified data and provide a rationale for the final decision.

C. Scope of Land Acquisition and Resettlement

4. This section:

(i) discusses the project’s potential impacts, and includes maps of the areas or zone of impact of project components or activities; (ii) describes the scope of land acquisition (provide maps) and explains why it is necessary for the main investment project; (iii) summarizes the key effects in terms of assets acquired and displaced persons; and (iv) provides details of any common property resources that will be acquired.

D. Socioeconomic Information and Profile

5. This section outlines the results of the social impact assessment, the census survey, and other studies, with information and/or data disaggregated by gender, vulnerability, and other social groupings, including:

(i) define, identify, and enumerate the people and communities to be affected; (ii) describe the likely impacts of land and asset acquisition on the people and communities affected taking social, cultural, and economic parameters into account; (iii) discuss the project’s impacts on the poor, indigenous and/or ethnic minorities, and other vulnerable groups; and (iv) identify gender and resettlement impacts, and the socioeconomic situation, impacts, needs, and priorities of women.

E. Information Disclosure, Consultation, and Participation

6. This section:

(i) identifies project stakeholders, especially primary stakeholders; (ii) describes the consultation and participation mechanisms to be used during the different stages of the project cycle; (iii) describes the activities undertaken to disseminate project and resettlement information during project design and preparation for engaging stakeholders; (iv) summarizes the results of consultations with affected persons (including host communities), and discusses how concerns raised and recommendations made were addressed in the resettlement plan; (v) confirms disclosure of the draft resettlement plan to affected persons and includes arrangements to disclose any subsequent plans; and (vi) describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination) and the process for consultation with affected persons during project implementation.

F. Grievance Redress Mechanisms

7. This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances. It explains how the procedures are accessible to affected persons and gender sensitive.

G. Legal Framework

8. This section:

(i) describes national and local laws and regulations that apply to the project and identify gaps between local laws and ADB's policy requirements; and discuss how any gaps will be addressed. (ii) describes the legal and policy commitments from the executing agency for all types of displaced persons; (iii) outlines the principles and methodologies used for determining valuations and compensation rates at replacement cost for assets, incomes, and livelihoods; and set out the compensation and assistance eligibility criteria and how and when compensation and assistance will be provided. (iv) describes the land acquisition process and prepare a schedule for meeting key procedural requirements.

H. Entitlements, Assistance and Benefits

9. This section:

(i) defines displaced persons’ entitlements and eligibility, and describes all resettlement assistance measures (includes an entitlement matrix); (ii) specifies all assistance to vulnerable groups, including women, and other special groups; and. (iii) outlines opportunities for affected persons to derive appropriate development benefits from the project.

I. Relocation of Housing and Settlements

10. This section:

(i) describes options for relocating housing and other structures, including replacement housing, replacement cash compensation, and/or self-selection (ensure that gender concerns and support to vulnerable groups are identified); (ii) describes alternative relocation sites considered; community consultations conducted; and justification for selected sites, including details about location, environmental assessment of sites, and development needs; (iii) provides timetables for site preparation and transfer; (iv) describes the legal arrangements to regularize tenure and transfer titles to resettled persons; (v) outlines measures to assist displaced person with their transfer and establishment at new sites; (vi) describes plans to provide civic infrastructure; and (vii) explains how integration with host populations will be carried out.

J. Income Restoration and Rehabilitation

11. This section:

(i) identifies livelihood risks and prepare disaggregated tables based on demographic data and livelihood sources; (ii) describes income restoration programs, including multiple options for restoring all types of livelihoods (examples include project benefit sharing, revenue sharing arrangements, joint stock for equity contributions such as land, discuss sustainability and safety nets); (iii) outlines measures to provide social safety net through social insurance and/or project special funds; (iv) describes special measures to support vulnerable groups; (v) explains gender considerations; and (vi) describes training programs.

K. Resettlement Budget and Financing Plan

12. This section:

(i) provides an itemized budget for all resettlement activities, including for the resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation. (ii) describes the flow of funds (the annual resettlement budget should show the budget-scheduled expenditure for key items). (iii) includes a justification for all assumptions made in calculating compensation rates and other cost estimates (taking into account both physical and cost contingencies), plus replacement costs. (iv) includes information about the source of funding for the resettlement plan budget.

L. Institutional Arrangements

13. This section:

(i) describes institutional arrangement responsibilities and mechanisms for carrying out the measures of the resettlement plan; (ii) includes institutional capacity building program, including technical assistance, if required; (iii) describes role of NGOs, if involved, and organizations of affected persons in resettlement planning and management; and (iv) describes how women’s groups will be involved in resettlement planning and management.

M. Implementation Schedule

14. This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities. The implementation schedule should cover all aspects of resettlement activities synchronized with the project schedule of civil works construction and provide land acquisition process and timeline.

N. Monitoring and Reporting

15. This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of affected persons in the monitoring process. This section will also describe reporting procedures.

Attachment 4: AHH Socio- Economic Survey

(see separate Excel file)

Attachment 5: DMS, IOL and LARP Calculation Forms

Table 1: Summary Vulnerable and Severely Affected households No. Severely AHHs No. Slightly AHHs Village EG HH Poor HH Female Other Other HHs TOTAL EG Poor Female Other Other TOTAL Headed Vulnerable HH HH Headed Vulnerable HHs HH HH HH HH

Table 2: Landownership by type of land of Affected Households Agricultural Land Housing land Village No of Total No of HH No of HH with No of HH No of Total No of HH No of HH with No of HH Affected HH Affected with LURC temporary land without Affected HH Affected with LURC temporary land without Area of Agri use right LURC Area of Non use right LURC Land (M2) Productive Land (M2)

TOTAL

Table 3: Summary of Land Acquisition Compensated Land Land donation Village Productive Non Forest Other (ha) Total Productive Non Forest Other (ha) Total name (ha) Productive (ha) (ha) (ha) Productive (ha) (ha) (ha) (ha)

Table 4: HH Assets to be Compensated Compensated other assets

Village Other Crops Plants Other name House / Shop Structures (m2) (No. Wells (m2) (m2) tree) (units)

TOTAL

Table 5: AHH Inventory of Losses Summary Household Name of Agricultural land Housing land Structures Trees Other Ref ID HH Head Affected Total HH % Affected Total HH % Buildings Type Type area M2 productive Productive area M2 productive Productive % and No. and land M2 land land M2 land Other/Wells No. affected affected – No.

Table 6: Details of Structures Affected Household Name Type of Building or Total Affected Affected Components Ref ID of HH Structure area M2 area M2 Head

Table 7: Details of AHH land Acquisition – Community Participation or Donation or Resettlement framework Agricultural land area Housing land area

Household Parcel Land Value Donation or negotiated Compensation Parcel Land Value Donation or negotiated Compensation Ref ID No. per (m2) settlement (m2) policy (m2) No. per (m2) settlement (m2) policy (m2)

Table 8: Summary of Affected Household Total Compensation due House No. Agricultural Trees and Total Household housing Land Structures Support Name (Husband and Wife) Land Crops compensation (Kip) (Kip) (Kip) Ref ID (Kip) (Kip) (Kip)

Totals

Table 9: Survey on historic replacement cost of land 2016 –2018 Comparison between compensation price and current prices of land on the free market BEFORE compensation payment

In which, transferred In which, amount of

- -

land money for transferred land

)

2018 2018

l l

(m2)

(KIP)

PRC in 2016 in PRC

rate issuedrateby

Village Names Village

Compensation

Residential Agricultura Agriculture Residential

Seller Seller (Transferors) Location of transferredland of Date transfer ring Total of amount thecontracts (KIP

Table 10: Unit replacement cost applied for land compensation for Project 2018 Land Price as per Decision Compensation Price Land Category issued by PRC in (Date of Replacement Cost _____ /2018 No latest decision) (KIP/m2) (KIP/m2) (KIP/m2) (1) (3) (4) (5) 1 Village 1 (Name)

Agricultural Land (indiscriminating of land location) Residential Land

(indiscriminating of land location) 2 Village 2 (Name)

Agricultural Land (indiscriminating of land location) Residential Land

(indiscriminating of land location)

Table 11: Compensation Rates for Building Supplies Item Unit Unit Cost Transportation Cost Cement Sand Aggregate Nails Wood planks Corrugated iron sheets PVC pipe Roof tiles Floor tiles Taps Door handles and hinges Glass sheets Steel bar Bricks Window frames Door frames

Table 12: Compensation Rates for Trees and Standing Crops Type of tree or Compensation rate Replacement Compensation rate Crop from PRC Cost estimate agreed for SRIWSM

Attachment 6: Ethnic Groups in Laos

Ethnic Groups In Laos

1. In Lao PDR, there are 49 EG groups officially recognized by the Government; they are categorized according to four ethno-linguistic families17: the Lao-Tai (67% of the population), the Mon-Khmer (21%), Hmong-Iu Mien (8%), and the Chine-Tibetan (3%). These categories further subsume 49 distinct ethnicities and some 200 ethnic subgroups. The Lao –Tai family includes Lao, Lue, Phoutay and other lowland groups, and accounts for 67% of the national EG population. The Mon- Khmer family includes groups such as the Khmu, Khuan and Samtao that account for 23% of the population; the Hmong, Yao and other Hmong-Iu Mien groups, accounting for 7%; and the Chine-Tibetan groups account for 3%. The government officially refer to IPs as ethnic groups (EG).

2. According to the 2015 National Population and Housing Census, out of the total population, the mainstream Lao ethnic group accounted for 53 percent, followed by Khamu (11 percent), Hmong (9 percent) and other ethnic groups (27 percent).

Table 2: Ethnic Group Population

3. Nationally, ethnic minorities make up approximately 43% of the total population of Laos18. The four main ethno-linguistic families are often re-categorized according to three topographic locations reflecting the traditional and preferred environments in which they live:

• Lowland Lao (the majority - mainly Lao -Tai), groups traditionally living in the lowland, valley floor regions of the country that historically have cultivated paddy, practiced Buddhism and are integrated into the national economy. These correspond to the Lao-Tai group and represent approximately 65% of the population. • Upland (slope) Dwellers (mainly Mon-Khmer), groups traditionally dominating the middle hills and for the most part practice swidden agriculture (rain fed

17 The actual number of ethnic groups may be as high as 236 depending on the level of classification used in regards to groups and subgroups within the main ethno-linguistic families (Chamberlain et. al.1996)

18 2015 national Housing and Population Census – National Center of Statistics.

upland hill rice, maize), many raise cattle, most are reliant on forest products and to some extent are isolated from the dominant lowland culture. Many groups exhibit varying degrees of assimilation and adaptation to Tai-Lao culture. These groups are the original inhabitants of Southeast Asia and consist of the Austro- Asiatic or Mon-Khmer ethnic groups (approximately 25% of the population). • Highland Lao (Sino-Tibetan Burma and Hmong-IuMien), groups dwelling in the highland areas practicing swidden agriculture growing mainly hill rice, maize, and traditionally many have grown opium. Many of these groups are historically relatively recent arrivals from Southern China and Vietnam and form about 10% of the national population.

Poverty and Ethnic Groups 4. The poverty rate is still highest among the Mon-Khmer (42.3%) and Hmong-luMien (39.8%) groups. The large Lao-Tai group have substantially lower poverty incidence than the other ethnic groups (15.4%). The Mon-Khmer have poverty incidence more than two and a half times the rate of the Lao-Tai and have seen a relatively slow decline in poverty incidence compared to the Lao-Tai (lowland dwellers).

Table 3: Ethnicity, location and poverty Location 2003 % of Total Poor 2013 % of Total Poor Lowland 28.6 18.8 Midlands 36.7 22 Uplands 43.4 33.9

Ethnic Linguistic Group 2003 % of Total Poor 2013 % of Total Poor Lao Tai 25.1 15.4 Mon Khmer 53.7 42.3 Chine Tibet 40 16.4 Hmong Iu Mien 45.8 39.8 Source: Poverty Profile in Lao PDR Poverty Report for the Lao Consumption and Expenditure Survey, 2012–2013

5. As can be seen using the 2015 national census data for poverty mapping, in general those provinces with high ethnic populations also have high poverty incidence levels. Saravan, Sekong and Attapeu in particular have high EM populations (approximately 50%. 90% and 70%) and also amongst the highest levels of poverty nationally.

Figure 2: Provincial Poverty Rate Figure 3: Poverty Density

The following map indicates the main EGs found in each province:

Figure 4: EG Groups by Province

Map source: MGM-Libergeo NSC, 2000, reproduced in ADB “Cumulative Impact Analysis and NT2 Contributions – Annex 8”, Nov 2004.

6. Figure 5 below indicates the presence of the 4 main ethno linguistic groups across the country and the transitional areas between the different groups traditional locations. As can be expected, it is quite usual to find several different EG groups within the same province and even district and village.

http://www.laoatlas.net/Welcome.html

Table 3: Approximate Provincial Ethnic Group Population Estimates

2015 Census Province Total Pop % EMG from 2005 Est. 2015 EG Popn. Oudomxai 307,622 76.9% 236,647 Phongsali 177,989 80.2% 142,790 Luang Namtha 175,753 68.5% 120,382 Bokeo 179,243 61.1% 109,489 Xiengkhouang 244,684 49.2% 120,306 Luangpabang 431,889 64.0% 276,307 Houaphan 289,393 44.1% 127,656 Sayabouly 381,376 26.5% 101,089 Saisomboun 85,168 67.0% 57,081 Vientiane Prov 419,090 32.1% 134,731 Bolikhamxai 273,691 25.9% 70,971 Khammouane 392,052 14.9% 58,596 Savannakhet 969,697 22.2% 215,008 Champassak 694,023 13.8% 95,979 Saravan 396,942 37.5% 148,942 Sekong 113,048 85.8% 96,950 Attapeu 139,628 61.0% 85,229 Vte Capital 820,940 4.4% 36,417

7. There has been significant movement and relocation of EG communities in the southern provinces due to colonialism, war, environmental impacts and influences. As a result, EG households (HHs) may live within their own community in upland areas they have traditionally occupied, they may form a majority in some lowland villages or could be a minority within a mainstream Lao village, or they may live in a community that has several different EG groups. The latter scenario is often encountered in urban and peri-urban areas where EGs have taken residence over generations, or in rural areas where there has been previous resettlement, or village consolidation has taken place.

8. As in the Greater Mekong Subregion (GMS) in general, the inclusion of ethnic groups in the countries’ economic development have largely been left behind, and the main reason being the significantly higher costs of developing infrastructure in isolated and upland areas, resulting in boom town development along valley floors compared with little change in upland areas. A comparison of poverty incidence and ethnic demographic maps confirms that ethnic minorities make up the poorest communities.

Education and Literacy 9. The Lao Social Indicator Survey 2012 (LSIS)19 found that EGs are disadvantaged with regards to access to education and healthcare due to isolation and difficulty to travel, and lack of cash. A lack of education combined with geographic isolation results in lower levels of literacy and awareness. Women from minority communities are even more disadvantaged, being held back by tradition and social mores and practices in many cases.

19 Conducted by National Statistics Center

10. The 2012 LSIS reports that children from non-Lao-Tai ethnic groups living in rural and remote areas have the lowest indicators of primary education. While 89 percent of students in the capital Vientiane who enroll in grade 1 stay in school long enough to advance to grade 5, less than half of them do in the most disadvantaged provinces (eg: Sekong, Saravan). These differences in enrolment and survival are reflected in youth literacy rates in the Lao language. For example, 90% of 15-24 year olds in urban areas are literate, compared with only 41% of those in rural villages without road access. These are the area’s most usually inhabited by EGs.

11. Educational disparities widen at the intersection of gender and ethnicity. Literacy rates for young males of Lao-Tai ethnicity are 84%, but only 63% for Mon-Khmer. The disparity increases for ethnic females, with 81% of Lao-Tai ethnicity but only 45% of Mon-Khmer ethnicity are literate in the Lao language20. This is explained by lower rates of enrolment and greater drop- out rates for rural women in remote areas (usually inhabited by EG communities). At the end of the 2010 school year, some 91.7% of primary school aged girls were enrolled at school, but this rate drops significantly to 55.5% for lower secondary school and only 30.4% for upper secondary school.

12. The 2012-2013 Lao Economic and Consumption Survey V (LECS) surveyed the education level of household heads and found the percentage of those with no formal education amongst Lao-Tai was 7.1%, Mon-Khmer 20.5%, Chine-Tibet 59.7% and Hmong –luMien 27.1%. The LSIS also reported that urban literacy amongst men and women aged between 15 to 24 years was 91% for women and 92% for men, compared to rural literacy of women 60% and men 72%.

Health 13. Significant inequalities persist along rural–urban lines and geographic areas (north, center, and south), and amongst ethnic groups in regards to access to quality healthcare. The Lao PDR’s maternal mortality rate is still among the highest in the world at 357 deaths per 100,000 live births according to the 2012 LSIS and the 2014 UNDP MDG report. This high rate suggests that access to and quality and uptake of emergency obstetric and skilled birth attendant at delivery pose major challenges for the country to achieve the MDG goal of 260 per 100,000, but shows a marked improvement from the 1995 baseline of 796/100,000. The under 5 mortality rate remains high at 79 per 1000 compared to the 1993 baseline of 170 and the MDG target of 70. Infant mortality per 1000 is 68 compared to the1993 baseline of 114, and MDG target of 45. Health service quality and access vary widely, particularly between rural and urban areas, with service quality being inversely proportional to degree of isolation.

14. A household survey in 2011 on Mother and Child Health (MCH)21 in six central and southern provinces demonstrates that financial factors were the most-reported constraint on health service utilization by women. Forty-five percent of all women reported that obtaining money for treatment was a barrier to receiving medical advice or treatment. Not wanting to go alone, and/or not being allowed to go alone, and physical access and transportation were additional problems reported.

15. Home birth is unavoidable for many EG women due to distance and time to access the health service and in most instances of maternal death, the woman has not presented at the health center until it is too late. When problems arise at a home birth the first resort is traditional treatment, whatever is available in the community. When the situation starts to become

20 Ethnic Groups Development Plan for the Second Global Partnership for Education Project, Department of Planning, Ministry of Education and Sports, June 2014 21 Maternal health, child health, and nutrition in Lao PDR: Evidence from a survey in six central and southern provinces, World Bank, 2013.

94 desperate, the woman is taken to the health center, and in many cases the child is born either in the village or before they arrive at the health facility. Case records show that in many cases the death is caused by post-delivery blood loss.

Livelihood Systems 16. EGs traditionally have either occupied upland (Mon Khmer) or highland areas (Sino Tibetan, Hmong luMien) and livelihood systems vary accordingly but traditionally they have all revolved around slash and burn shifting cultivation. Highland dwellers grow hill rice, have grown opium but now mainly replaced with maize, raise livestock (cattle, pig, poultry) and grow vegetables for home use, and collect non-timber forest products (NTFPs). They have practiced swidden or shifting cultivation for generations and the government is trying to replace these shifting slash and burn techniques to more permanent stable production systems. In some areas, they are encouraged to grow sugar cane and also rubber.

17. Upland dwellers have traditionally grown hill rice, maize, cassava, ground nut, soy beans and other vegetables and also raise livestock such as cattle, pigs, goats, poultry. They also collect NTFPs for making handicrafts and items for HH use.

18. It is now quite common to find EGs engaged in commerce and agri-business in all provinces and districts, and many have chosen themselves to relocate to lowland areas, closer to services and markets, and have taken on lowland farming and paddy, both irrigated and rain fed. It is not unusual to meet EG families who are sending money and rice monthly to their children studying at high school, college and university in provincial and even the national capital.

19. The extent of EG participation in the cash market economy depends upon location and access rather than traditional beliefs or preference to adhere to traditional customs. Those EGs that have relocated to lowland areas have adopted mainstream Lao livelihoods. Those close to built-up areas, markets and arterial roads are more likely to grow produce for sale and home consumption. EGs in traditional remote areas are following a more subsistence based livelihood but also produce some handicrafts and produce some crops and livestock for sale, although these are mainly bought up by “middlepersons” who visit the village, by then transport the products and resell them in lowland market hubs.

Social Cohesion 20. Historically and traditionally villages in Lao PDR have been mono-ethnic, however, with the relocation of villages and village consolidation (kumban pattana) program, this is changing and now there are mixed villages as well what were previously discrete villages of differing ethnic groups that have been ‘consolidated’ into one village. Due to language and cultural differences, there is the potential for barriers to arise or exist that will present challenges inters of groups of villages being able to effectively work together for the purpose of water distribution or road maintenance.

Constraints to EG Development 21. Four of the main, and interlinked, factors influencing EG development are:

i. – Isolation and remoteness ii. – Poverty iii. – Tradition and social mores iv. – Literacy Working with EG Communities 22. There are some general rules to be followed when working with traditional EG communities:

• Elders have a position of respect in the community, more so than in Lao communities, and buy-in from the elders’ Council will facilitate acceptance of project interventions. When working at village level it is critical that the first contact is with the village administration and the Elders. • Traditional healers, shamans have positions of respect and influence in the community and need to be brought alongside rather than working against the health office. • Women do not usually attend meetings with outsiders. • Women let the men have public face and will not usually ask questions or make comment in meetings. • Family decisions are usually made at home between husband and wife. • In many EG communities, women are not encouraged to talk to men from outside the community. • Separate men and women’s focal or discussion groups should be convened in order to provide women a forum within which they can ask questions, volunteer information and ask questions in a neutral environment. • Messages need to be conveyed in local language – proven translators need to be used. • Avoid using technical language when talking to EGs. • Do not use IEC, BCC materials that rely extensively on text (Lao) as almost all EG languages are oral only. • Women should facilitate the discussion in the women’s groups and men facilitate men’s groups. • EG people lack scientific and political knowledge but are rich in local and environmental knowledge. EG people have a wealth of knowledge aiding their survival in difficult conditions. They are not ignorant or uncivilized. • EG communities are close knit, like to do things together and demonstrate a higher level of social cohesion.

Consultation with EG women 23. In many EG communities’, women are discouraged from talking to outsiders, especially men from outside their community. EG women let the man have the public face – usually the wife does not accompany the husband to village meetings. Husbands and wives will discuss issues in the home and the man is given the role of “official communicator”.

24. In big meetings most EG women do not have confidence to speak up and will not criticize or conflict with anything said by the authorities or the men. They are very often reluctant to ask questions whilst in a mixed group. To have more meaningful consultation with EG women, separate sex discussion groups need to be used and, facilitators of same sex used for each group (women facilitate women’s group). Depending upon the training, EG women may need to be provided a forum in which they feel comfortable to ask questions, contribute comments and also ask for clarification. In mixed ethnic villages where EGs are the minority, a separate, mixed sex EG consultation group can be used.

Potential Positive and Adverse Effects of the Project on Ethnic Groups 25. The proposed Sustainable Rural Infrastructure and Watershed Management Sector Project will increase the profitability of the agriculture, natural resources and rural development sector by enhancing sustainable, market oriented agricultural production together with natural resources management.

26. This is to be achieved through provision of infrastructure and supporting activities within discrete subprojects with infrastructure comprising rehabilitation of existing irrigation systems,

96 roads and possibly water supply. As these are not located in the more remote and inaccessible areas, it is possible that subproject beneficiaries will include a disproportionally large number of Lao-Thai (as compared to overall provincial proportions due to the predominance of Lao-Thai in lowland areas). Based on the analysis and preliminary information from the subproject socioeconomic surveys, the potential adverse effects for ethnic groups in subprojects that need to be managed and mitigated include: (i) land and thus poverty; (ii) communications; and (iii) social cohesion. The following paragraphs describe the potential positive and adverse effects.

Positive Effects 27. Improved natural resource and watershed management will contribute to increased agricultural productivity, providing increased incomes for those with access to the irrigated land and improve household welfare and nutritional status. Supporting activities through technical training, formation and capacity building for producer groups will diversify production and enhance skills, knowledge and confidence. For those without irrigated land, there will be opportunities for employment during the construction phase and in ongoing maintenance. Increased agriculture production will also require increased labour inputs and therefore also provide employment opportunities. Finally, increased village incomes will also provide for opportunities in commerce and non-agriculture employment. For vulnerable ethnic groups without access to irrigated land, regular ongoing paid employment will be of most benefit.

Potential Adverse Effects 28. There are few negative impacts. The project is rehabilitating and improving existing access roads, irrigation schemes and other rural infrastructure that already exists. Some families may contribute their land or receive compensation for land used by the project, although in most cases additional land will not be needed. In any case, any land contributed or acquired by the Project, will result in significant benefits to the AHH, particularly in regards to crop yields.

Ethnic Group Development Plan Actions 29. Generic measures that can be applied during implementation of each of the subprojects selected that have EG HHs in the community are: (i) consultation at all stages to be conducted in each ethnic groups own language and preferably separately for women and men (field observations found that women were reluctant to participate in mixed group settings); (ii) positive discrimination measures to ensure representation of ethnic groups on all management committees and other working groups; (iii) training and other capacity building activities to be conducted in ethnic languages where to do otherwise would result in exclusion/inability to participate; and (v) preferential employment in construction and maintenance work for disadvantaged ethnic group members. The following table sets out the specific elements to be addressed in each ethnic group development plan (EGDP) prepared for subprojects with impacts on EG HHs.

EGDF Elements Overview

Project Component Ethnic Group Development Framework - Elements (i) Irrigated and upland farmers • Representation in market linkage programs with income increased from • Representation in capacity building HVC and livestock • Awareness and access options for the inclusion of EG in grant program (ii) PRI Catchment watershed • Representation of ethnic groups and women on all ecological services protected subproject management committees and in community decision making bodies

• Capacity building for ethnic groups (men and women) to enable participation in subproject and community decision-making delivered in local language and using appropriate methodology. • Representation of ethnic groups (men and women) in project study tours, trainings and related programs • Extension services designed for and delivered to ethnic groups and women using local translators. • Implementing agencies will ensure any land use certificates or titles issued under the Project are updated in both spouses' names (iii) PRI upgraded to be climate • Translation of PIB in local language resilient, efficient, and • Documented evidence of consultation with EGs during sustainable infrastructure design and layout • Documented evidence of consultation with ethnic groups (women and men) demonstrating their support prior to subproject approval. • Ensure Grievance Resolution Mechanism disseminated in local language. • EGs represented proportionally on water user committees and other CBOs • EGs participate fully in agriculture, irrigation O&M, WUG and other training being provided. • Training participation is disaggregated by sex and ethnicity • Local translation provided for all training events • Local contractors employ women and men from poor ethnic households in construction activities. • Equal access to work and equal pay for women and men for work of equal type. • Safe working conditions for both men and women workers. • Local contractors will not employ child labour. • Ensure appropriate prevention programs are implemented for HIV and human trafficking in any subprojects with a construction camp. (iv) Improve nutritional status • Representation of ethnic groups and women on district nutrition of targeted communities committees • Representation and participation of EG in village nutrition schools • Access to water, sanitation and hygiene (WSH) infrastructure investments where required. (iv) General – applicable to all • Safeguard (Indigenous Peoples) specialist included in national outputs. and provincial subproject implementation teams. • Social Impact Analysis and EGDP elements will be prepared for each subproject LARP. • Ongoing training and mentoring by International and National Specialists will be provided to national and provincial staff to enable effective preparation and monitoring of individual IPPs for each subproject. • All monitoring and evaluation data disaggregated by ethnic groupings (four ethno-linguistic groupings) and sex. • PGT and PPITs responsible for monitoring and reporting of EGDP elements performance indicators, including ethnic participation, training and employment targets. • EGDP performance included in mid-term reviews.