Phou Louey National Protected Area (P113860)

RP1319

Lao People’s Democratic Republic

Public Disclosure Authorized Involuntary Resettlement Process Framework

Global Environment Facility Medium-Size Project

Developing and Demonstrating Replicable Protected Area Management Models

Public Disclosure Authorized at Nam Et -Phou Louey National Protected Area (P113860)

Public Disclosure Authorized

June 21, 2012

Contents:

1. Background ------1 2. Project components ------4 3. Project implementation arrangement ------6 4. Legal framework ------6 5. Project impact and the process framework------7 6. Project measures to ensure mitigating negative impacts------8 6.1. Participatory planning of resource restriction------8 6.2. Alternative livelihood ------8 6.3. Case of the Sanam users------9 6.4. Infrastructure development in and near NEPL NPA ------9 6.5. Physical and Cultural Resources ------10 6.6. Safeguard compliance by co-financiers------10 6.7. Voluntary land acquisition------10 7. Criteria for eligibility------10 8. Social assessment------11 9. Process of FPIC------14 10. Participation framework------15 11. Partnership with currently active and on-pipeline development projects in the NEPL NPA------19 12. Project monitoring and evaluation------20 13. Budget------20

Involuntary Resettlement Process Framework (revision as per the updated MSP dated June 21, 2012)

1) Background

The Project for Developing and Demonstrating Replicable Protected Area Management Models at Nam Et -Phou Louey National Protected Area (The Project) aims to test, in selected areas of the Nam Et-Phou Louey National Protected Area (NE-PL NPA), targeted activities for sustainable natural resource use and protection of species threatened by human interaction. The project is comprised of three core project components, including i) Management and conservation working models, within NE-PL NPA including implementation of co-management of infrastructure in sensitive habitats, ii) Working models of ecotourism for community engagement and sustainable financing, and iii) Dissemination and replication working models of NE-PL NPA within Lao PDR.

The Nam Et -Phou Louey National Protected Area is located in the Nam Et-Phou Louey National Protected Area (NE-PL NPA) which is operated under the authority of the Nam Et-Phou Louey Protected Area Management Unit (PAMU) with technical support from the Wildlife Conservation Society (WCS) (Figure 1). The project covers the Nam Et- Phou Louey National Protected Area (NE-PL NPA) landscape in northern Lao PDR, which harbors biodiversity of national and global significance, including the only known breeding population of Indochinese Tiger in Lao, and has been managed by the PAMU since 2000.

The NPA covers 422,900 ha of mountainous terrain (Figure 2). The northern boundary of the NPA borders Vietnam and a proposed expansion of the protected area spans three provinces and seven districts including Luang Prabang Province (Viengkham and Phonxay districts), Houaphan province (Viengthong, Huamuang, Xamneua, and Xiengkhor districts), and Phoukoud district in Xieng Khuang province. Approximately 80% of the land area in Viengthong district alone is NE-PL NPA. This district is known to be one of 47 poorest in Lao PDR. Approximately a total of 30,000 people in 127 villages are known to live in and adjacent to the NPA.

The NE-PL NPA landscape has a long history of human settlement by people from three major ethno-linguistic groups, including the Lao-Tai (Tai Lao, Tai Dam, and Tai Deng), the Mon-Khmer (including Khmu), and the Hmong-Iu Mien (including Hmong and Iu Mien), who today remain largely engaged in subsistence agriculture activities with limited integration in the market economy. Rice is the staple food and is primarily produced through rotations of shifting cultivation on steep mountainous slopes. Meat and vegetables are raised or harvested from the forest.

Figure 1. Institutional Arrangements for Nam Et-Phou Louey National Protected Area (after Appleton et al. 2003).

Nam Et – Phou Louey Protected Area Advisory Committee

NPA Manager WCS Technical Assistance

WCS Site Coordinator

Research & Land Use Administration Enforcement Conservation Ecotourism Monitoring Management Section Section Outreach Section Section Section Section

-Finance -1 Checkpoint District Teams working -Tiger & Prey -Visitor Information -ADB Livestock Project -Equipment -3 Mobile Units in: Monitoring Center -German Development - Transportation & - 8 Forest Substations 54 Villages -Biodiversity -Wildlife-based Tourism Service Technical Maintenance 37 Schools Monitoring / Research Support 9 Military Bases -Monitoring Natural -World Bank projects Resource Use on rural development

2) Project components

Component 1: Management and conservation working models, within NE-PL NPA including implementation of co-management of infrastructure in sensitive habitats. (US$ 678,000).

Under this component, the project will strengthen Protected Area Management Unit (PAMU) capacity to monitor and manage harvests of managed species for sustainable use in the Controlled Use Zone within the NE-PL NPA. Activity includes a) Community Awareness Raising in 30 NPA villages aimed to raise community awareness and understanding of, and ultimately their compliance with, NPA regulations; b) Village Natural Resource Agreements with approximately 20 communities including those in the controlled use zone near the Phathi Road to map village use areas and ratify village agreements with the NPA for wildlife and land-use management; c) Monitor Change in Harvest of Wild Foods and Estimate Sustainability of Wildlife Off-take. Results of monitoring will be incorporated into campaign messages and used to adapt agreements for PA zoning and wildlife use; and d) Expand patrolling effort and ranger substations to secure Totally Protected Zone, reduce illegal/unsustainable wildlife trade, and encourage villages to graze their livestock at their village’s area rather than in the core zone. These activities will allow the Protected Area Management Unit, WCS, the Province and District to work together to ensure that access to the core zone along Phathi Road is managed and monitored.

Furthermore, this component will demonstrate best practices to mitigate anticipated impacts from the use of Phathi Road through supporting the implementation of the Co-Management Plan which includes awareness raising on the use of Phathi road; establishing a lock gate and check point at the two ends of the road; establishing one substation along the road and financing permanent staff at the two check points and substation to carry out patrolling activity; establishing access monitoring system; conducting training staff on patrolling along the road; supporting land use planning in the villages near to the road; and supporting the development of long term Phathi road management plan.

This component will include developing alternative community livelihoods within and near the NE-PL NPA to help local villagers minimize their dependency on wild meet consumption and collection of NTFPs and mitigate potential short-term negative impact due to the introduction of restricted access to natural and forest resources under the GEF project. Two co-financiers will provide financing to the development of alternative community livelihood. KfW/GiZ funded Climate Protection through Avoided Deforestation Project (CliPAD) will support the Participatory Land Use Planning (PLUP) in all 30 target villages, and develop alternative community livelihood in 15 of them through providing training and demonstration as well as the provision of in-kind inputs. PLUP will help target villagers demarcate various categories of land based on the existing land use patterns. Based on the results, villagers will be assisted identifying and developing alternative community livelihoods. Initial expectation is that the livelihood support would center around increasing small and large livestock productivity within the allocated areas. The World Bank financed Poverty Reduction Fund (PRF), through its Livelihood Opportunity and Nutrition Gain (LONG) component, will support alternative community livelihoods in the other 15 target villages where CliPAD will conducts PLUP but will not provide subsequent livelihood support. Specifically, LONG will provide training, technical support and block grant for groups of affected villagers to start up and implement their livelihood activities that will be identified through participatory processes. All these livelihood activities , and the implementation arrangements and timeframes jointly identified between PRF and villagers, will

be documented in the Village Development Plan (VDP) and in the Village Natural Resource Agreement (VNRA) as part of the Process Framework’s implementation.

Component 2: Working models of ecotourism for community engagement and sustainable financing. (US$130,000)

Under Component 2, project will build capacity of the NPA MU and local communities to diversify revenue for forest and wildlife management by generating alternative income through ecotourism-based activity. It aims to Operationalize Feasible Ecotourism Products in NE-PL NPA and Establish Mechanisms for Making the Revenues Directly Available for the Management of the PA. Activity includes a) development of guidelines and regulations on the development of ecotourism activity in NE-PL NPA; b) organize village structure to manage and run ecotourism activity in their village area; c) support the establishment of ecotourism based facility such as tourism camping station and trekking route etc.

Component 3: Dissemination and replication working models of NE-PL NPA within Lao PDR. (US$33,795)

Under the Component 3, a NE-PL NPA management model will be produced, and disseminated to practitioners from the protected areas in Lao. Activity includes a) TA to Synthesize the lessons from NE-PL NPA, on: (i) sustainable natural resource use by villages inside a protected area; (ii) tiger conservation; (iii) ecotourism based livelihoods for local communities; and (iv) management of infrastructure, particularly roads in sensitive habitats in multiple use protected areas; and b) Incorporation of the protected area management model into a curriculum to train at the National University of Lao (NUOL) and disseminate it through workshops with DFRM and related agencies.

Component 4: Project management. (US$37,205)

This component will support the implementation of entire project components. Activities will include the management of staff; implementation of activities under the three core components; the management of stakeholder relations; the management of project finances and procurement; and support for the needs of WCS to work with the NE-PL PAMU and NE-PL PAMAC.

The World Bank’s Involuntary Resettlement Policy requires that adverse impacts on local communities should be avoided wherever possible and that, where this is not possible, all project- affected persons should be assisted in their efforts to restore or improve their livelihoods. The enforcement of restrictions on access to resources will, in the long term, help villages manage common resources sustainably, improve food security as well as keep species from being extirpated. In the short-term, however, such restrictions, even when implemented based on a participatory manner as under the Project, may negatively affect the livelihood of people living within or near the NPA, especially the cash income from selling wildlife1. Thus, this Resettlement Policy Framework is provided to ensure restrictions of access are done through a participatory process and that alternative livelihoods are provided in line with the World Bank and GoL’s policies.

1 Even though in almost all cases this is illegal as described in the Wildlife and Aquatic Animal Lao, No 7/NA, Section V, Article 52.

3) Project Implementation Arrangement

The responsibility for the implementation of the RPF as well as Ethnic Peoples Plan lies with the executing NGO, Wildlife Conservation Society (WCS), which will work closely with the relevant local government agencies and communities. Government mass-based organizations such as the Lao Front National Construction (LFNC) and the Lao Women Union (LWU) will be involved in the project implementation. LFNC will assist ethnic minority consultations and mobilizations as specified in the Ethnic People Plan while the LWU will help facilitate and promote village women’s participation in the project. WCS will ensure that the relevant expertise are mobilized to implement the Framework, including activities that strengthen the participation of ethnic minorities (e.g. training and capacity building), as well as to be able to oversee its implementation.

A series of safeguard training and implementation support will be jointly provided for the project safeguard focal staff and PAMU by the Bank safeguard specialists and MoNRE2. Exchange workshops or visits to similar NPA projects in Lao such as NT2 watershed, Namkading NPA conservation project) and in neighboring countries would also be organized for the implementing agencies for the purpose of networking and knowledge sharing.

As mentioned above, there are two co-financiers to this project. The Bank funded Poverty Reduction Fund (PRF) project, using grant financing from the Japan Social Development Fund (JSDF), will provide the financing of $640,000 for participative livelihood development in some target villages. The KfW funded Climate Protection Through Avoided Deforestation Project (CliPAD) will also provide a co-financing of 700,000 to the project. Funds will be provided to relevant district officials (e.g. District Agricultural and Forest Office) to implement project activities as well as to WCS to develop the capacity of relevant district officials. Project activities funded by Poverty Reduction Fund (PRF) and CliPAD will be conducted as per provisions of this RPF. The NE-PL Management Unit (PAMU) will coordinate and monitor project implementation.

4) Legal Framework

Lao PDF has basic regulations aiming to address negative social impacts arising from development projects. The Compensation and Resettlement Decree 192, Article 8, provides that any people whose access to community resources are affected by development projects are entitled to sustainable income restoration measures, in addition to their entitlement for compensation and other allowances, enabling them to attain at a minimum pre-project livelihood levels. The Article 12 of the Decree 192 stipulates that “The project owners shall implement the resettlement program in a participatory manner ensuring that APs, local authorities and other stakeholders are fully informed and consulted and their concerns are taken into account at all stages of the project cycle, particularly during the planning and implementation phases of the land acquisition, valuation and resettlement process”. Although these decrees do not explicitly require broad community support to be established or specifically oblige developers to conduct free, prior and informed consultations, they nonetheless require that meaningful consultations be carried out prior to project implementation and that their concerns be addressed in project design. Gaps often occur due rather to weak implementation and poor monitoring – some developers may not fully engage in meaningful consultations or address concerns of affected people but relevant government officials often fail to take remedial actions due to limited budget, weak monitoring or lack of follow up actions.

2 Ministry of natural Resources and Environment, which is responsible for development and dissemination of environmental and social impact assessment policies including the EIA Decree and Resettlement Decree

5) Project Impact and the Process Framework

The Project will introduce the restrictions of access to natural/ forestry resources under the project which may negatively affect the livelihood of local communities at least on a short run.

This Process Framework is therefore developed to achieve the following objectives:

a) to provide full consultation with, and informed participation of affected people. b) to avoid, minimize or mitigate potentially adverse effects of new restrictions, and increased enforcement of existing as well as new restrictions, of access to natural resources.

The principles laid out to meet these objectives include: a) broad-based and consultative definition of protected area boundaries, new restrictions, and increased enforcement in Nam Et Phou Louey based on biophysical as well as socio-economic assessments; b) decisions will be based on the informed participation of all affected people, in the form of consultations and agreements reached between the affected people and the respective local and project authorities. Agreements will be formalized in a Village Natural Resource Agreement (VNRA) document; c) restrictions of access to resources that will adversely affect the livelihood of affected people will be mitigated in order to ensure that affected people will have alternative livelihoods to be able to at least maintain, if not improve, their livelihoods. This is especially true for wildlife that is sold to meet cash needs and restrictions of the use of natural resources such as land and NTFPs. Measures to ensure alternative livelihood will be provided in the Village Development Plans. d) wildlife conservation interventions will respect ethnic minorities’ belief systems, and ethnic minorities will be facilitated to actively participate in the whole project cycle to ensure that they are continually informed in a free, prior and informed participatory manner trough out the implementation of the EMDP and the PF.

This Framework provides the process to be followed. It does not spell out in detail each of the activities undertaken to avoid or mitigate impacts from restrictions of access to natural resources. Such details will be worked out during project implementation in accordance with the Process Framework, through the participatory processes for protected area management and buffer-zone management, which culminate in the development of the Village Development Plan (VDP) and Village Natural Resource Agreements (VNRA) based upon the villagers’ needs and priorities3. Thus, respective VDP and VNRA which as part of the Process Framework implementation will provide the detailed actions which will describe the results of the participatory planning with affected communities and provide measures to mitigate impacts and means to address

3 For VDP and VNRA, please see below for details.

grievances, with potential sources of financing to implement them, thereby ensuring compliance with OP/BP4.12.

6) Project Measures to Ensure Mitigating Negative Impacts

6.1. Participatory planning of resource restriction

The project activities, particularly the land and forest use zoning and management as well as their enforcement, may result in the restriction of ethnic communities’ access to natural resources: swidden agricultural land, forest and NTFPs, which they heavily depend on for their livelihood. A series of planning consultations and feasibility studies with the affected villages will be undertaken in all 30 target villages to raise conservation awareness, agree on conservation regulations and alternative livelihood priorities aiming at conservation and sustainable natural resource management at the beginning of the project implementation.

Outcomes from the consultations will be documented and formalized in two documents namely the Natural Resource Management Agreement (NRMA) and the Village Development Plan (VDP) as part of the implementation of the Process Framework. The project will partner with the on-going and pipeline rural and livelihood development projects described in the following sections to mobilize their support and resources to implement the NRMA and VDPs.

To enhance ethnic community participation and their receiving benefits from the project in a culturally appropriate manner, the participatory planning process currently applied by the on-going PRF project financed by the Bank will be employed by the executing agencies. A set of IEC and visualized materials will be developed and used for consultations to help those ethnic villagers who have communication and language difficulty to better understand and articulate their needs and concerns. Local interpreters or tribal leaders will be encouraged to help with translation between ethnic and Lao languages. In addition, the project will also collaborate with the Lao Front for National Construction (LFNC) and Lao Women Union (LFNC), government mass organizations which are officially mandated to support and advocate ethnic minorities and promote women participation in development respectively. These mass-organizations are staffed with representatives of diverse ethnic groups who could help with communication and mobilization of ethnic minority’s villagers and women to participate in the project.

6.2. Alternative livelihood

For eligible villages that are adversely affected by increased enforcement of access restrictions and limited wildlife harvest, this project will develop alternative community livelihoods so as to mitigate negative impacts on their livelihood. Measures to develop alternative community livelihood will be identified with the participation of the affected communities, which will center on establishing alternative livelihood activities that are environmentally sustainable and culturally appropriate. Local authorities and other donor-assisted projects will be consulted as needed to provide mitigation measures. It is the responsibility of WCS and the NE-PL NPA Management Unit to ensure that affected

communities receive adequate mitigation measures as necessary as provided for in this Process Framework. No restrictions of access will take place without a prior commitment of providing timely and adequate alternative livelihood sources from a series of pre-identified sources. The VDP and VNRA will clearly spell out the sources of funds to implement mitigation measures.

6.3. Case of the Sanam users

With respect to the land and forest use zoning to be supported under the project, support will be provided to Sanam users to stay on in Sanams, if they so wish, through carrying out participatory land use and livelihood planning processes and facilitating the implementation of the Village Development Plans (VDP) with the objective of improving the livelihood of those who wish to retain their Sanams and ensuring sustainable natural resources practices. If they choose to retain their Sanams in the PA, the Project will partner and mobilize support from other on-going development projects to implement the VDP and improve the sustainability of natural resource use in PA. Thus the livelihood planning process to be supported under the Project will be closely coordinated with on- going development projects including the Bank-financed PRF Additional Financing KfW/GiZ projects.

6.4. Infrastructure development in and near NEPL NPA

Some infrastructure development is under way or is planned by the government within and near the NE-PL NPAs. These include on-going road maintenance including the recently identified development of Phathi road, mining exploration and initial survey of potential hydropower development. EIA and SIA are to be carried out for such projects by respective project developers and the findings would be documented. Mitigation measures would also be identified as part of EIA and SIA to address the possible impacts or issues associated with the development activities. Any on-going and future development projects within and adjacent to the NE-PL NPAs shall be consulted with the NE-PL NPAs management unit, local communities and concerned stakeholders. Even if these investments are not related to or financed under the project, the project team would support NE-PL NPA to ensure any infrastructure development projects follow national regulations on EIA and SIA, and that necessary mitigation measures are included in the NPA management plan.

The World Bank would strongly discourage involuntary resettlement of local people or dispossession of their assets in and near the NE-PL NPA as a result of any possible development projects even if they are not related to and financed through this project. If minor land acquisition or relocation of the local people is unavoidable, the Bank suggests that the project developer follows the government policy on SIA described in the EIA Decree No 112 and Resettlement Decree 192. If involuntary resettlement is found to be unavoidable under any World Bank financed project that is implemented in or near NEPL NPA, the OP 4.12 would apply to such infrastructure development and the resettlement plans applicable to respective projects will be used to mitigate impacts. No land acquisition or involuntary resettlement is anticipated under the project.

6.5. Physical and Cultural Resources

The VDP will be developed taking into consideration the local cultural values of each village and each ethnic group. Thus, areas that are important to local people, such as sacred forest areas, burial grounds, or spirit trees, will be designated on the plans, and will be managed according to customary practices (e.g. as protected areas). Villagers will further develop local rules to govern how such areas will be managed. The rule will be endorsed by the PAMU and district authority. Other project activities that may affect local ethnic communities, such as tourism activities, will also be developed in consultation with them so that they are able to participate and share the benefit from the tourism activities.

6.6. Safeguard compliance by co-financiers

As mentioned above, there will be two co-financiers to the project, besides in-kind contribution from the NE-PL PAMU. They will follow the provisions under this EPP with regard to free, prior and informed consultations and broad community support, and mitigation of negative impacts that may arise from their activities, which are in line with existing national legislation. They have capacity and experience in place to identify and implement project activities with full participation of affected community members. Nonetheless, NE-PL PAMU will monitor activities conducted by the co-financiers closely to ensure that they comply with the existing regulations. The project will develop the capacity of NE-PL PAMU in safeguard monitoring, and hire a consultant who will support the NE-PL PAMU in monitoring activities conducted within NE-PL NPA, including those funded by co-financiers to the project. Sufficient budget is also allocated for monitoring. The task team will also carefully monitor and advise NE-PL PAMU on any issues related to safeguards.

6.7. Voluntary land Acquisition

As mentioned above, support to alternative community livelihood may require acquisition of private land, although the impact is likely to be minor. The project will finance any livelihood activities only if owners voluntarily donate land or other private assets and if the impact is minor (that is, acquired land is less than 10% of the total productive assets). To this effect a protocol to establish in detail the process and document any voluntary donation of land will be developed in the project Operational Manual. Any activity that will involve involuntary land acquisition will be included in the negative list of community livelihood support, and the absence of land acquisition, or the informed consent of owners in the event voluntary land donation is involved, will be confirmed prior to disbursements.. Task team will monitor and confirm during implementation that no one will lose land or private asset as a result of project implementation against their will or in the absence of informed consent.

7) Criteria for Eligibility

Communities living in or near Nam Et Phou Louey NPA are eligible for benefits based on the criteria to be agreed through the consultative process. The eligibility criteria will determine which groups and persons are eligible for assistance and mitigation measures, which groups and persons are not. Based upon agreement with communities, the criteria may exclude certain persons or groups from assistance because their activities are clearly illegal and knowingly undertaken in bad faith, such as illegal wildlife trade, wildlife poachers, dynamite fishers. The criteria may also distinguish between persons utilizing resources opportunistically and persons using resources for their livelihoods, and between groups with customary rights and non-residents or immigrants. Special consideration and priority will be given to the vulnerable groups of people including the three ethnic minority groups (Hmong, Khmu and Iu-Mien) and female-headed households. These criteria jointly determined with the affected villages will be documented in VNRA.

8) Social Assessment

A social assessment that consists of various socio-economic and biodiversity surveys, participatory land and forest use planning, outreach activities and inclusive consultations, has been undertaken in all target villages within and adjacent to the NEPL NPA by WCS, PAMU and the World Bank Task Team. This included baseline studies to determine current wildlife and NTFP use, cultural and monetary value of natural resources. In addition, at national and provincial workshops and other meetings conducted during project preparation, organizations such as the Lao Women’s Union and Lao Front for National Construction (LFNC) participated in discussions on how to promote broad- based community participation in, and sharing of benefits from the project.

During project preparation, consultation meetings were conducted in 56 villages including four out of the eight villages affected by the rehabilitation of the Phathi road. During the consultation meetings, which were organized in the community’s local language and based on an FPIC methodology, the project objective and activities, as well as expected project benefits and potential negative impacts especially due to restrictions on access to natural resources, were explained and the views of participants collected. These consultations allowed the NEPL NPA team to learn more about the community’s needs and views regarding the access to natural resources, livelihood development, and ways in which the communities can benefit from NEPL management. These assessments and consultations conducted before and during the project preparation confirmed the broad community support by the ethnic communities in the NEPL NPA, including that 4 villages that are affected by the Phathi road, to the activities planned under the current project proposal. The field visit conducted under the appraisal mission, jointly conducted by the Bank task team and WCS, also found that villagers in the NEPL NPA are well aware of and knowledgeable about the project and support the activities planned under the project, indicating that the consultations had been conducted properly. Communities in NEPL NPA, including the eight villages affected by the Phathi road, will be further consulted for and participate in project activities during project implementation including

the finalization and execution of the co-management plan for the villagers near the Phathi road.4

The social assessment and consultation meetings found the following:  Primary project stakeholders are the 30,000 multi-ethnic people living in 98 villages in the project area, of which 34 are located within the controlled use zone and 64 villages near the NPA. These include 8 villages that are located around both ends of Phathi road and who would be affected by the road rehabilitation. Among other stakeholders, those who live in 30 priority villages would receive project support to raise community awareness, understanding and compliance with natural resource management agreements and PA regulations. Of the 30 priority villages, 8 villages would be directly affected by the Phati road development.  Other project stakeholders include a) NEPL NPA Management Unit (PAMU) and WCS as co-implementing agencies, b) district and provincial authorities and concerned line agencies which provides various degrees of support, c) people living in district town, surrounding districts and provinces, d) local, Chinese and Vietnamese traders who buy NTFPs and agricultural products from these villages inside and near the NPA, e) local and overseas visitors and tourists who visit ecological and archeological sight-seeing places in and near the NPA, f) private investors, consultants and contractors hired to undertake surveys and assessments and renovate the Phathi road, and g) on-going donor-supported development projects including the Bank-financed LUFSIP5 and PRF Additional Financing and KfW/GiZ projects which seek to strengthen alternative livelihoods of local population in and near NEPL NPA.  The expected negative impact of the project includes reduction in access to natural resources as the source of food and income, resulting in loss of livelihood, nutrition and income. Implementation of Phathi road management plan and access control may also lead to inconvenience and increased time spent on security check and possible increase in transport cost as a result of fee charged for access control and road maintenance.  Ethnic people in NEPL NPA are found to have limited knowledge, skills and confidence. With the language barrier and their heavy reliance on natural resources as the source of livelihood, ethnic minorities in NPA may find it difficult to participate in and receive equal benefits from the project in a culturally sensitive manner without an active project support for their informed participation and transformation of their traditional livelihood.

4 Preliminary consultations with local population to both discuss detailed actions necessary to implement the Phathi road co-management plan and also to consult the updated draft EA, EPP and RPF already started in eight villages near both ends of the Phathi road. EA, EPP and RPF may be updated during implementation based on the comments and feedbacks received. Consultations of the earlier versions of EA, EPP and RPF had already been conducted. 5 Lao Upland Food Security Improvement Project which has become effective from June 2010

 The district governments encourage sedentary lifestyles near the main roads and rivers. The national policy encourages communities to merge and prosper close to the most developed areas as possible.  Five (5) villages with the population of about 2,000 within the NEPL NPA were found to have developed crop plantation or paddy fields outside their villages locally called as ‘Sanams’ within the totally protected zone. They have also built their own cottages and granaries to stay for several months during the growing season to look after their crops and their livestock freely grazing around the area. Many of them claimed that they had established their Sanams in this area before the official establishment of the NE-PL NPAs in 1993. These villagers received agriculture land within their village boundaries through the IUCN and WCS supported land use planning, however, the land distributed is reportedly insufficient and the soil is relatively poor. The district government expressed the intention to relocate all the Sanams out from the TPZ to more suitable land elsewhere for these people. The district authority also plans to move one of the ethnic villages, namely Houai Tun located in the controlled use zone, to a low land area outside the NPAs, where there is potential for irrigation development. The government proposed this irrigation project to the Bank’s mission for financial support.  Most communities around the NE-PL NPA are “rice sufficient” throughout the year. Only when weather patterns or economic drivers interrupt their traditional planting do the communities suffer rice shortages. Rice is often sold to meet cash needs.  All communities living around the NE-PL NPA rely heavily on the NTFPs for their daily subsistence.  Large livestock (buffalo/cattle) are used as a “family savings account” rather than a source of protein for the family to consume. Livestock contributes to the cash economy. The local government does not approve of livestock being raised in the totally protected zone.  Communities recognize their dependence on the natural resources around them but often cannot manage the resources themselves. Outsiders come into their village areas and utilize resources without permission. This is particularly true for aquatic resources or fixed resources such as bamboo shoots, honey combs, and wild fruits. Communities have begun to establish fish conservation zones to prevent illegal fishing.  Illegal wildlife trade is reducing the abundance of wildlife available for communities to consume. In many cases the hunter receives very little cash while the middlemen reap the cash benefits at the community’s long term expense.  Management of natural resources is still not seen as “rural development” even though the Hmong and Khmu communities recognize that without these resources they would be much worse off than they are today.

 Assisting all communities better manage their resources within the village use areas, provided to them by the government, will reduce their vulnerability to the fluctuating climatic and economic situations.  Communities living in the controlled use zone and around the NPA consider it is important that the government provides them secure right to use the land which will give them confidence to explore new livelihood options with support from various development projects (described in paragraph 6.2) through the process of participatory land use planning and allocation.  In the Xon Nuea area there is immediate need for family planning. The population of many villages is 50% under 12 years of age. This growth rate is putting increased pressure on the lands in the near future.  If people in the 5 above mentioned villages wish to stay on in their Sanams, the project needs to ensure that they will be able to stay on in Sanams, by carrying out participatory land use and livelihood planning processes and facilitating the implementation of the Village Development Plans (VDP), thereby improving their livelihood.

Additional data necessary to establish the impacts of any potential access restrictions will be collected during project implementation. These assessments will build upon data available and collected to date during project preparation by the NE-PL NPA. The further assessments aim to: (a) identify specific needs of PAPs especially the ethnic minorities and additional measures and support that have to be provided; (b) characterize in detail the different user groups in relation to the NPA; c) provide detailed mapping of user access rights; (d) detail current and customary land and resource use of local communities and assess their sustainability if deemed necessary; (e) determine the contribution wildlife and NTFP’s make to rural protein and cash needs; (f) update changes and trends in the broad socio-economic and socio-political composition of the villages bordering the NPA. These activities will be done in order to assess possible impacts of project activities mainly from resource use restrictions on the local communities. These assessments will feed into most other activities of the project, in particular to the education and awareness and buffer-zone management sub-components as well as the development of the Village Natural Resource Agreements and of any mitigation measures needed.

9) Process of Free, Prior, and Informed Consultations with and participation by project beneficiaries during the implementation phase.

A process of free, prior, and informed consultation (FPIC) with local communities has been and will continue to be an important part of this EPP and the Process Framework. It is employed as a vehicle to help a) establish broad community support for the project, b) discuss potential impacts and mitigation measures; c) determine the various land use boundaries within the NPA; and d) develop and agree on resource use restrictions in which the affected ethnic people would be willing to participate, knowingly and without loss in livelihood. Decisions affecting public access and resource use will be made with the participation of the affected communities, with the aim of achieving consensus.

Conclusions will be documented in Village Natural Resource Agreements (VNRA) that will be developed between respective villages and the NPA.

In order to ensure that meaningful consultation and participation would continue to be carried out during implementation, several mechanisms will be put in place. These include:

 Information dissemination will be, as needed, in the local languages and/or will be based on visual, oral and other appropriate means of communication in communities with limited literacy and/or Lao language skills  Acknowledged ethnic minority leaders and organizations will be consulted;  As far as needed ethnic minority communities and their leaders will receive additional support and training to enable them to participate fully in decision making processes; and,  Culturally appropriate participatory processes and a sufficient time frame will be established to allow adequate gender and generational representation to express their views and preferences.

Specifically, a community/household survey, community wildlife use survey and a community resource use survey would be conducted, and participatory consultations would be carried out to seek opinions of, and allow participation by, affected ethnic communities in the process of developing access restrictions, which will culminate in the development of VNRA.

10) Participation Framework

To achieve the objectives and principles outlined in the Process Framework the following participation framework is suggested to guide methods of engagement with villagers.

Guiding principles  Participatory management and sustainable use of natural resources by local residents is determined by the following factors: resource tenure, access to the resources, rules and regulations, and a supportive legal authority at all levels.  Natural resource use is an activity that is done by both men and women. Therefore methods used to obtain information on natural resource use should be inclusive of both genders.  Many persons who rely on natural resources are not literate, yet their input to resource management is very relevant. To engage them participation methods will need to be oral (in native language if necessary) and with the use of visual aids.  Natural resource management is a concept understood by all ages. In some cases, ‘old ways’ have been supplanted by ‘new ways’ and could be revisited. In some cases ‘old ways’ are no longer appropriate given new technologies or access to markets. Changing resource management paradigms should follow cultural norms and participatory processes.  Current resource use laws of Lao PDR are adequate, but sometimes not appropriate for implementation at the village level at this time. It is unrealistic that villagers will

voluntarily participate in a scheme to restrict access to resource just based on participatory measures and consultation. Appropriate incentives will be needed as well as warnings before imposition of penalties.  Current participatory approach used by GoL staff is still quite centrally determined. Training and encouragement will be needed to help GoL counterparts engage villagers on a more equal footing. These approaches are consistent with GoL desire for decentralization and capacity building.  Participation in protected area management activities will be documented in the Village Natural Resource Agreements, to be signed by the protected area manager and the village chief. This document will be made with the participation of affected communities and other relevant stakeholders, translated into the local language, promoted through village awareness activities and made available to all for review.

Implementation plan

The project has a strong community focus, district and village leaders, and villagers need to be fully involved in implementation of project activities. These activities will be guided by Village Development Planning (VDP) processes already initiated by the Government of Lao and Village Natural Resource Agreement to be developed with support from this project. The VDP will serve as an effective tool for addressing the impacts and throughout the VDP development process, other donor-supported development projects will be consulted and coordinated in order to improve synergy, mobilize their support for the potentially affected communities and secure potential funding for implementation. The VNRA will formalize and reinforce regulations and land and forest use management and the set of criteria for eligible PAPs and activities to be supported through this project. The VNRA will closely link with and reinforce the VDP, which outlines NRM and alternative livelihood priorities identified by the villages. The four-step approach described below and to be conducted under Component 1 of the project, summarizes the process through which VDP will be prepared in ways that will ensure high levels of participation from both genders and all ages: Step 1 Baseline determination:

Establish positive respectful and participatory relationships with local people. Get as much “face time” with the local people and authorities as possible. Introduce the project and “listen” to the local people’s concerns.  Complete a detailed assessment of natural resource use applying WCS field tested quantitative and qualitative methods.  Complete a detailed habitat assessment to determine the availability of resources using tried and tested WCS field techniques.  Return results from the above surveys back to the local people, showing genuine respect for their livelihoods. This should include sharing all ecological knowledge.

Step 2 Situation analysis:

 Identification and documentation of the village vision for sustainable natural resources use, taking care not to raise expectations of villages.

 Identification of constraints and opportunities to the vision.  Return the results of the situational analysis back to the villages through meetings.  Share openly “why” international NGOs and donors are interested in the biodiversity around the local communities. Insure there is no misconception between local communities, district, provincial and central level authorities.

Step 3 Develop a Village Sustainable Resource Agreement.  Through strategic planning, develop clear village goals and objectives for sustainable use of natural resources. [Conceptual modeling of sorts].  Introduce possible direct incentives as options for increased participation in natural resource management conservation.  Work in collaboration with villages to make new or modify old Village Development Plans (VDPs) that meet these goals and objectives. This includes identification of use zones, and means and rates for sustainable extraction.  Develop a Village Natural Resource Agreement (VNRA) in collaboration with villages. The VNRA will link closely with and reinforce the implementation of the CDP.  Get VDP and VNRA approved by district and provincial offices.  Promote the VDP and VNRA in the village through public awareness activities.  Coordinate and discuss the VDP with the Bank-financed PRF and KfW/GiZ projects for their support

Step 4 Implement the VDP and VNRA.  Villagers and district staff identify and mark the various use zones.  Villagers, district and other agency staff initiate development schemes.  Villagers and district staff patrol, monitor and enforce VDP rules.  Village and district staff evaluates the effectiveness of the VDP.  Continually return progress and monitoring results back to the local communities.

The VDP will follow the standard format for a VDP. The VNRA will include the following elements:  The nature and scope of restrictions (with maps of use zones);  The anticipated social and economic impacts of the restrictions;  The communities or persons eligible for assistance;  Specific measures to assist these people, along with clear timetables of action, and financing sources (could refer to the VDP);  Implementation arrangements, roles and responsibilities of various stakeholders, including government and non-government entities providing services or assistance to affected communities;  Arrangements for monitoring and enforcement of restrictions and natural resource management including monitoring of alternative livelihoods  Special measures concerning women and vulnerable groups, as needed;  Grievance mechanism and conflict resolution taking into account local dispute resolution practices and norms

Customary rights or values

There may be a potential for resource use restrictions to infringe on customary rights such as access to spirit forests or other cultural or religious values. The following guiding principles will be used by the project to minimize conflicts of land use concerning such customary rights or values. This will also be done in participatory manner with the communities potentially affected by any such restrictions.

Guiding principles

 Existing local use practices will be used as the platform for developing the VDP and VNRA, therefore protecting any customary rights as allowable by Lao law and authority and Bank policy.  Spirit forest will be viewed by the project as a land use that should be identified and mapped as one of the physical cultural resources protected by the community  Under Lao law, National Protected Areas are multi-use areas and even core areas allow for non-extractive use. Therefore people will not be excluded from spirit forests even if they are located within core zones of a protected area. In the managed zones of protected areas, sustainable extraction of non-endangers species is allowed and promoted in a sustainable manner.  Wildlife as cultural totems will be viewed by the project as a legitimate wildlife value and respected to the point that threatened and endangered species are not harmed for cultural practices.

Conflict Resolution and Grievance Redress Mechanisms

It is possible that problems, complaints, and/or conflicts may arise with respect to the project as a whole, and village development activities in particular. Certain issues, relating to compliance with national and provincial laws, are to be addressed through legal and regulatory provisions. In the case of disputes at a village level, normally it will be the responsibility of village mediation committee already existing in all target villages to solve the issue, but if satisfactory resolution is not obtained, then the parties can appeal to district and/or provincial authorities for assistance. The village mediation committee is chaired by respected elder person or tribal group leader (for some ethnic minorities) and includes the village head man or his deputy, village Lao Woman Union and village solders. If a problem occurs between villages, such as a dispute over village boundaries, then normally the district authorities would mediate a resolution. In the case where a problem arises between the villagers and government, such as between one or more villages and the NPA management unit, then the parties should have the right to mediation by a neutral third party, such as the provincial court.

However, recognizing that many conflicts arise due to difference in understanding and perceptions, a proactive approach will be adopted to avoid conflicts before they escalate. This approach will promote a common understanding through a four-pronged method, including: (a) wide-spread disclosure of project background information; (b) clarification of the criteria of eligibility and types of assistance under the Process Framework; (c)

clarification of the duties and responsibilities of all stakeholders in the process; (d) community education and awareness regarding the value of biodiversity conservation, their customary rights, threats to the NPA, and options for mitigating these threats; (e) education of GoL and project staff regarding the customary rights and practices of local communities, including any particular issues concerning ethnic minorities.

Regarding the Process Framework, complaints will be handled as follows:

(i) As a first stage, affected or concerned persons will present, verbally but preferably in writing, their complaints to the village mediation committee to address. If the case is not resolved is not within one week or the resolution is not satisfied by the claimants, their grievance applications shall be forwarded to district project staff or advisors, via Kum Ban6 staff. For those claimants, who may not be able to read and write the committee will assist in writing their message on the application. The district staff will have to provide a documented response to the claimants within fifteen days. Records on each complaint and subsequent measures taken must be sent to the Nam Et-Phou Louey NPA Management Unit in Viengthong District, Houapahn Province as an attachment to regular/monthly reports.

(ii) If the claimants are not satisfied with the decision, the case may be submitted to the WCS- Lao Project Office in Vientiane, as well as to local authorities (e.g. the Provincial authority or the Provincial court). Specified authorities must record receipt of complaints and reply to the claimants within thirty days. Claimants will be exempt from any administrative or legal charges associated with pursuing complaints.

11) Partnership with Currently Active and On-pipeline Development Projects in the NEPL NPA

Currently, only three NPAs in the country have reasonable levels of site management. These comprise the Nakai Nam Theun National Protected Area managed by the Watershed Management and Protection Authority with funds generated from the Nam Theun 2 Hydropower Project, as well as NE-PL NPA and Nam Kading NPAs managed by WCS and several partner organizations. The project will build on the extensive experience of WCS in protected area, species and tourism management within these two sites. The project also benefits from the lessons learned from (i) the GEF 3-financed Integrated Ecosystem and Wildlife Management Project (IEWMP) executed by WCS in Bolikhamxay Province and (ii) WCS’s program (1996-2006) in Nam Ha NPA in Luang Namtha in the Northwest of NE-PL. Several key lessons learned from Bolikhamxay Province are being applied to the design of this project, in particular the proposed project will (a) follow and expand the work done on a social marketing campaign, (b) utilize the established community outreach methods to manage wildlife use in the management zone but also expand the work with communities to monitor the sustainability of the resource use; (c) benefit from, and build, on the business model (management system and fee

6 Kum Ban refers to as a cluster of village which is led by a multi-sectoral team of district staff assigned by the district government

structure) of the research-based tourism piloted in Bolikhamxay; and (d) incorporate training material developed in Bolikhamxay to develop an institutionalized training program for Lao PAs offered through the National University. Further to this, the WCS experience in wildlife monitoring and management in collaboration with the World Bank and the Nam Theun 2 hydropower project in central Lao will contribute to the proposed project. The proposed project further complements ongoing and planned activities under the GEF/UNDP’s program on Supporting Country Action on the CBD Programme of Work on PAs by providing tangible examples on the ground for financing PAs and building human capacity through training.

12) Project Monitoring and Evaluation

The Project will have a monitoring and evaluation system. It will include village self- monitoring of their own village development projects. Villagers will also be involved in monitoring of the buffer-zone management activities. In addition, these participatory monitoring efforts will be linked to the overall project’s monitoring and evaluation program.

Other monitoring arrangements will include collecting baseline data, performing household surveys, and analyzing community feedback to assess general trends in income and livelihoods to gauge possible impacts of the project on local communities. The WCS with its team based in the project site, will be responsible for progress monitoring and reporting in collaboration with Protected Area Management Unit (PAMU). Studies and assessments may also be jointly undertaken with the partnered during the project implementation to provide required livelihood and biodiversity related projects information to inform the status of the project implementation. The World Bank Task Team will also be providing implementation support for the WCS and PAMU on a regular basis.

An evaluation of the implementation of the Ethnic Peoples Plan and Resettlement Process Framework will be included in the independent mid-term review and post review. Any revisions to the plan, suggested by the independent review or other monitoring and evaluation exercises, will be agreed to with the World Bank.

13) Budget

Indicative budget of about 1,358,000 USD, including contribution from co-financiers, has been earmarked for concerned agencies and staff to monitor and support the preparation and implementation of the Village Development Plans and the Cooperate Agreements. The budget for implementing the Process Framework has thus been integrated into the overall budget for the project. Exact costs for mitigating any adverse impacts as a result of restrictions on access to resources will depend on the number of people affected and cannot be determined at this point. While we are not sure of the exact impacts, the NE- PL NPA/WCS management team has many resources available to assist with mitigation of affected persons. The Poverty Reduction Fund, through JSDF, will provide $640,000 to support livelihood activities in up to 15 communities linking livelihood, whereas

CliPAD will provide $700,000 to support similar livelihood activities in other 15 villages. NE-PL NPA and WCS, together with the Bank task team, would conduct careful and hands-on monitoring to ensure that mitigation measures will be developed prior to project activities (restrictions) that affect their livelihoods.

Budget line Description Budget allocation (USD) Social Safeguard 3 person-months including travel related costs to visit Focal Staff from project sites and to participate at the safeguard training 2,000 WCS or study visit Social Safeguard 3 person – months Focal Staff from 2,000 PAMU Partnered agencies, 6 person – months 2,500 LFNC and LWU Consultations and This includes IEC and meeting materials of which meetings with target some have been produced and applied by WCS and 1,500 villages PRFprojects Project impact annual monitoring following protocol developed in Y1 10,000 monitoring PRF 640,000 CliPAD 700,000 Total 1,358,000

References Duckworth, J. W., R. E. Salter, et al. (1999). Wildlife in Lao PDR: 1999 Status Report. Vientiane, The World Conservation Union (IUCN), Wildlife Conservation Society (WCS) and Centre for Protected Areas and Watershed Management (CPAWM). GoL 2007a Forestry Law No.6/NA; 24 December 2007. Lao People's Democratic Republic National Assembly, Vientiane, Lao PDR. GoL 2007b Wildlife Law 07; 24 December 2007. Lao People's Democratic Republic National Assembly, Vientiane, Lao PDR. ICEM (2003a). Lao PDR National Report on Protected Areas and Development. Review of Protected Areas and Development in the Lower Mekong River Region. Indooroopilly, Queensland, International Centre for Environmental Management. Johnson, A. In press. A landscape summary for the Nam Et-Phou Louey National Protected Area, Lao PDR. In Synergies and tradeoffs between biodiversity conservation and local livelihoods of the Lower Mekong countries. Bogor: Center for International Forestry (CIFOR) Schlemmer, G. (2002). Community livelihoods analysis, Nam Et Phou Louey National Biodiversity Conservation Areas. Vientiane, World Conservation Union (IUCN) and Ministry of Agriculture and Forestry (MAF).