Social Monitoring Report (Part 1) Project Number: 48368-001 August 2017 MYA: Myingyan Natural Gas Power Project Prepared by Environ Myanmar Co., Ltd. The social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. 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. Prepared for: The Asian Development Bank, Manila, Philippines and The International Finance Corporation, Hong Kong Multilateral Investment Guaranty Agency Prepared By: Environ Myanmar Co Ltd Yangon, Myanmar Date August 2017 Project Number: MM110015 LAND ACQUISITION AND RESETTLEMENT PLAN OBSERVATION REPORT MYINGYAN 225 MW GAS-FIRED COMBINED CYCLE POWER PLANT (Volume 1 Main Report) Revision This report is a revision of the draft report submitted in February 2017 and it includes Environ's responses to questions and comments submitted by ADB, IFC and MIGA, and it also reflects updated land acquisition and compensation information. Date August 2017 Made by Sharon Maharg, Josiah Bowles, Zin Mar Lwin and Esther Su Nwe Checked by Juliana Ding Approved by Juliana Ding Description Land Acquisition and Resettlement Plan Observer Report Ref MM110015 LAND ACQUISITION AND RESETTLEMENT PLAN OBSERVER REPORT Final CONTENTS 1. INTRODUCTION 1 1.1 Background 1 1.2 Scope and Objective of the Observer Report 1 1.3 Change in Scope of Involuntary Resettlement Impacts in the project 1 1.4 Report Structure 2 1.5 November 2016 Site Visit 2 2. PROJECT DESCRIPTION 4 2.1 Location and General Description 4 2.2 Villages within the Project’s Area of Influence 5 2.3 Village Locations 5 3. LEGAL AND REGULATORY FRAMEWORK AND APPLICABLE INTERNATIONAL STANDARDS 7 3.1 Legal and Other Requirements 7 3.2 National Laws 7 3.3 Relevant Agencies 7 3.4 Applicable International Standards 7 3.5 Sembcorp’s Stakeholder and Community Engagement Policy 8 4. STAKEHOLDER ENGAGEMENT AND PUBLIC DISCLOSURE 9 4.1 Project Stakeholders 9 4.2 Engagement with Governmental Agencies 10 4.3 Community Consultations/Public Meetings 10 4.3.1 Initial Seven Villages 10 4.3.2 Additional Six Villages 12 5. THE PROJECT’S RESETTLEMENT IMPACTS 13 5.1 Physical Resettlement 13 5.1.1 Temporary Physical Displacement 14 5.2 Economic Displacement 15 5.2.1 Permanent Economic Displacement 15 5.2.2 Temporary Economic Displacement 15 5.3 No Impacts to Other Assets 17 6. LAND AND CROP COMPENSATION PROCESS 18 6.1 Methodology 18 6.1.1 Land Acquisition Act 18 6.1.2 Project-specific Considerations 18 6.1.3 Compensation Rate Determination 19 6.1.4 The Negotiation Process 19 6.1.4.1 Water Supply Pipeline Right-of-Way and Power Poles 19 6.1.4.2 Transmission Line Towers and Power Line 20 6.1.4.3 Other Non-Titleholders (squatters) 20 6.2 Steering Committee Meetings with the People Affected by the Project 21 6.3 Land and Crops Inventory 21 6.3.1 Significance of Land Loss 23 6.4 Negotiation Meetings with the PAPs 23 6.4.1 October, 2016 Negotiation Meetings 23 6.4.1.1 Taung Thar Township, 18 October 2016 23 6.4.1.2 Hta Naung Taing Village, 19 October 2016 23 6.4.2 Hta Naung Taing Village, 1 December 2016 24 6.5 Compensation Ceremonies 24 6.5.1 Hnann and Sa Khar Villages, 23 November 2016 24 6.5.2 Taung Thar Township, 1 & 4 February 2017 24 LAND ACQUISITION AND RESETTLEMENT PLAN OBSERVER REPORT Final 6.5.3 Myingyan Township, 2 February 2017 24 6.5.4 Hta Naung Taing Village, 3 February 2017 25 6.6 Community Grievance Mechanism 25 6.7 Status of Compensation 26 7. CONCLUSIONS AND RECOMMENDATIONS 37 7.1 Conclusion and Recommendations 37 8. REFERENCES 38 TABLES Table 1.1: November 2016 Site Visit Activities Table 4.1: Project Stakeholders Table 4.2: Stakeholder Engagement with Governmental Agencies Table 4.3: Stakeholder Engagement with Initial Seven Villages Table 4.4: Stakeholder Engagement with Additional Six Villages Table 6.1: Non-Title holders (squatters) Table 6.2: Number of Affected PAPs in Myingyan Township (as of October 2016) Table 6.3: Number of Affected PAPs in Taung Thar Township (as of October 2016) Table 6.4: Significance of Land Loss Table 6.5: Myingyan Land Acquisition (Crop Compensation Meeting) Table 6.6: Summary of Results of Negotiation and Compensation Meetings FIGURES Figure 2.1: Project Location (source: Sembcorp) Figure 5.1: Tea house in Aye Village (source: Sembcorp) Figure 5.2: Mini-grocery shop in Hta Naung Taing Village Figure 5.3: House with fence to be removed in Aye Village (source: Sembcorp) LAND ACQUISITION AND RESETTLEMENT PLAN OBSERVER REPORT Final APPENDICES Appendix A Updated Land and Crops Inventory as of February 2017 (Redacted for Confidential Information) Appendix B Observer Social Site Visit 14-18 November 2016 Photolog Appendix C June 2016 Stakeholder Engagement Meeting Records Appendix D Observer 23 November 2016 Compensation Meeting Photolog Appendix E Observer 1-4 February 2017 Compensation Meeting Photolog Appendix F Stakeholder Engagement Database Appendix G River Water Pipeline Route with Locations of Three Squatters Appendix H Power Pole Route Along the River Water Pipeline Appendix I Crop Pricing and Full replacement Land Compensation Report Appendix J Payment Agreement Contract-Towers LAND ACQUISITION AND RESETTLEMENT PLAN OBSERVER REPORT Final ACRONYMS AND ABBREVIATIONS ADB: Asian Development Bank AID: Agriculture and Irrigation Department AOI: Area of Influence BOT: Build, Operate and Transfer CCGT: Combined Cycle Gas Turbine CDP: Community Development Plan DAI: Direct Area of Influence EPGE: Electric Power Generation Enterprise ERM: Environmental Resource Management ESIA: Environmental and Social Impact Assessment ESMP: Environmental and Social Management Plan GAD: General Administrative Department GOM: Government of Myanmar IAI: Indirect Area of Influence IFC: International Finance Corporation IPP: Independent Power Producer LRD: Land Registration Department LUCs: Land U se Certificates MIGA: Multilateral Investment Guarantee Agency MOEE: Ministry of Energy and Electricity MOEP: Ministry of Electric Power MOI: Ministry of Industry PAPS: People Affected by the Project PSs: Performance Standards RAP: Resettlement Action Plan RF: Resettlement Framework ROW: Right of Way SMP: Social Management Plan T-Line: Transmission Line Environ Myanmar LAND ACQUISITION AND RESETTLEMENT PLAN OBSERVER REPORT Final 1 1. INTRODUCTION 1.1 Background The consortium of Sembcorp Utilities Pte Ltd and MMID Utilities Pte Ltd (“the Sponsors”) hasve been selected by the Ministry of Electric Power (MOEP) of the Government of Myanmar (GOM) as a private sector Independent Power Producer (IPP) to develop a 225 MW Combined Cycle Gas Turbine (CCGT) Power Plant on a Build, Operate and Transfer (BOT) basis in Myingyan Township, in the Mandalay region in Union Republic of Myanmar. A special purpose company (“Project Company” or “PCo”) has been established in Myanmar and ultimately will be beneficially owned by the Sponsors for the sole purpose of developing and operating the Project. 1.2 Scope and Objective of the Observer Report Environ Myanmar Co. Ltd (“Environ”) was engaged to, based on information provided by the party/ies responsible for the land acquisition and observations made during the site visits, inform the Lenders on the land acquisition process followed at the site, identify gaps and determine the actions required to bridge the gaps. Environ’s findings are documented in this Land Acquisition and Resettlement Plan Observer Report. ENVIRON prepared its Final Observer Report (August 2017), based on information provided by the party/ies responsible for the land acquisition and observations made during its attendance at the following meetings to observe the land acquisition process: Negotiation Meetings with PAPs • 18 October 2016 Taung Thar Township; • 19 October 2016 Hta Naung Taing Village; and • 1 December 2016 Hta Naung Taing Village. Compensation Ceremonies • 23 November 2016 Hnann and Sa Khar Villages; • 1 & 4 February 2017 Taung Thar Township; • 2 February 2017 Myingyan Township; and • 3 February 2017 Hta Naung Taing Village. In addition, during meetings with stakeholders during ENVIRON’s November 2016 monitoring site visit, to inform the Lenders on the land acquisition process followed at the Project, to identify gaps in compliance with Applicable Standards, and determine the actions required to bridge the gaps. ENVIRON’s findings are documented in its Final Observer Report. 1.3 Change in Scope of Involuntary Resettlement Impacts in the project At the time of resettlement framework preparation, GoM was to permanently acquire the lands required for the transmission line towers’ footprints, electric poles and water pipelines, adopting national requirements. The resettlement framework required Sembcorp to bridge the gaps in compensation between the national requirements and SPS/IFC PS requirements. However, after approval of the project by the lenders (ADB/IFC), the GoM took a decision not to carry out permanent acquisition of the lands required for the transmission lines, towers, electric poles and the water pipeline. Instead, an approach to enter into agreements with the individual land owners for right of use of the lands required after payment of compensation. Therefore, the river water pipeline was buried under private lands and the land uses (mostly agriculture) will continue undisrupted post laying of the pipelines. Similarly, for the transmission lines and towers, Environ Myanmar LAND ACQUISITION AND RESETTLEMENT PLAN OBSERVER REPORT Final 2 there was no permanent land acquisition and permanent impacts were envisaged only for the lands under footprints of the transmission line towers and electric poles.