Northern and Central Regions Water Supply and Sanitation Sectors Project

Resettlement Plan

February 2009

Lao PDR: Northern and Central Regions Water Supply and Sanitation Sectors Project

Prepared by Department of Housing and Urban Planning, Ministry of Public Works and Transport, for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 31 March 2009)

Currency unit – KN KN1.00 = $0.00011 $1.00 = KN8,573

ABBREVIATIONS ADB Asian Development Bank AP affected person(s) CAT community action team DAFEO District Agriculture and Forestry Extension Office DMS detailed measurement survey DRC district resettlement committee DCTPC Department of Communication, Transport, Post and Construction DPWT District Staff Public Works and Transport DUHP Department of Housing and Planning EA executing agency the Government Government of Lao PDR HH household IEE initial environmental examination IMA independent monitoring agent IOL inventory of losses IPSA initial poverty and social assessment LAR land acquisition and resettlement LURC land use rights certificate LWU Lao Women Union Lpcd liter per capita per day m meters MPWT Ministry of Public Works and Transport M&E monitor and evaluation NCRWSSP Northern and Central Regions Water Supply and Sanitation Sector Project OPWT Office of Public Works and Transport the Project Northern and Central Regions Water Supply and Sanitation Sector Project P. B Consultant package B consultant PAFO Provincial Agriculture and Forestry Office PIB public information booklet PIU project implementation unit PCU project coordination unit PNP provincial nam papa PPME program for project performance monitoring and evaluation PRA aparticipatory rapid appraisal PRC provincial resettlement committee RC resettlement committee RF resettlement rramework ROW right-of-way RP resettlement plan

SES socioeconomic survey sqm square meters TAMU technical assistance management unit VEI village environmental improvements WASA water supply authority

WEIGHTS AND MEASURES km (kilometer) – 1,000 meters kg(kilogram) – 1,000 grams

GLOSSARY Affected person – As per Decree 192 on Compensation and Resettlement of People Affected by Development Projects (July 2005), any person or organization affected by a project, who in the context of acquisition of assets or change in land use, would have their: (i) standard of living adversely affected; (ii) right, title or interest in all or any part of a house, land (including residential, commercial, agricultural, plantations, forest and grazing land) water resources or any other moveable or fixed assets acquired or possessed, in full or in part, permanently or temporarily adversely affected; (iii) business, occupation, place of work or residence areas adversely affected with or without displacement; and/or (iv) community resources adversely affected. Compensation – Payment in cash or in-kind at replacement cost for an asset to be acquired by the Project. Cut-off date – The date that a population record or census, preferably at the project identification stage, serves as an eligibility cut-off date in order to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. The cut- off date is the date when the census for the RP was completed. The Cut-Off date for this Project is 31/3/2012 for Module 3, and 31/5/2012 for Module 1 and 2. Land acquisition – The process whereby a person is compelled by the Government through the Executing Agency of the Project to alienate all or part of the land s/he owns or possesses in favor of the State in the implementation of the Project or any of its components in return for consideration. Meaningful – A process that (i) begins early in the project preparation stage consultation and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures,

the sharing of development benefits and opportunities, and implementation issues. Replacement cost – The method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets is not taken into account. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures necessary to meet the replacement cost standard. Stakeholders – Individuals, groups, organizations interested in and potentially affected by the project or having the ability to influence a project. Vulnerable group – As per Decree 192 on Compensation and Resettlement of People Affected by Development Projects (July 2005), distinct groups of people who might suffer disproportionately from the loss of fixed and movable assets, other assets and production base or face the risk of being marginalized from the effects of resettlement and specifically include: (i) divorced or widowed female headed households with dependents and low income; (ii) households with disabled or invalid persons; (iii) households with persons falling under the generally accepted indicator for poverty as defined by the Ministry of Labor and Social Welfare, or the landless; and (iv) elderly households with no means of support.

NOTES (i) The fiscal year (FY) of the Government of ends on 30 September. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2009 ends on 30 September 2009.

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

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “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.

NORTHERN AND CENTRAL REGIONS WATER SUPPLY AND SANITATION SECTOR PROJECT

NAMTHA DISTRICT TOWN, LOUANG NAMTHA PROVINCE SHORT RESETTLEMENT PLAN

Department of Housing and Urban Planning (DHUP) Ministry of Public Works and Transport (MPWT)

February 2009

TABLE OF CONTENTS

ABBREVIATIONS ii PROJECT MAP iii SUBPROJECT MAP OF NAMTHA DISTRICT TOWN, LOUANG NAMTHA PROVINCE iv

I. INTRODUCTION 1

II. THE SUBPROJECT AND SCOPE OF LAR 1 A. The Subproject Description 1 B. The Scope of Land Acquisition and Resettlement 2 1. General 2 2. Scope 3 3. Vulnerable groups 4

III. LEGAL FRAMEWORK AND PROJECT PRINCIPLES 5 A. Legal Framework 5 1. Laws and Regulations 5 B. Project Provisions and Principles 6 1. Eligibility 6 2. Categories of APs 6 3. Type and level of loss 6 4. Entitlements 7

IV. PARTICIPATION AND CONSULTATION 8 A. Preparation of Subproject Resettlement Plan 8 B. Implementation of the Subproject RP 9 C. Grievance and Redressal 9

V. IMPLEMENTATION ARRANGEMENTS 10 A. Roles and Responsibilities 10 B. Project Budget 11 C. Implementation Schedule 12 D. AP Database 13

Tables Table 1: Affected Households and Persons in Namtha 4 Table 2: Loss of Land, Structures and Trees in Namtha 4 Table 3: LAR Costs Namtha 11

Attachments Attachment 1: Village-level Impacts 14 Attachment 2: District Unit Cost Estimates 15 Attachment 3: Inventory of Losses 16 Attachment 4: Record of Consultations with APs 17 Attachment 5: Form for Consultation with no longer APs 18

ABBREVIATIONS

ADB Asian Development Bank AP affected person(s) CAT Community Action Team DAFEO District Agriculture and Forestry Extension Office DMS detailed measurement survey DRC District Resettlement Committee DCTPC Department of Communication, Transport, Post and Construction DPWT District Staff Public Works and Transport DUHP Department of Housing and Planning EA Executing Agency the Government Government of Lao PDR HH Household IEE Initial Environmental Examination IMA Independent Monitoring Agent IOL inventory of losses IPSA Initial Poverty and Social Assessment LAR land acquisition and resettlement LURC Land Use Rights Certificate LWU Lao Women Union Lpcd Liter per capita per day m Meters MPWT Ministry of Public Works and Transport M&E monitor and evaluation NCRWSSP Northern and Central Regions Water Supply and Sanitation Sector Project OPWT Office of Public Works and Transport the Project Northern and Central Regions Water Supply and Sanitation Sector Project P. B Consultant Package B Consultant PAFO Provincial Agriculture and Forestry Office PIB public information booklet PIU Project Implementation Unit PCU Project Coordination Unit PNP Provincial Nam Papa PPME program for project performance monitoring and evaluation PRA Participatory Rapid Appraisal PRC Provincial Resettlement Committee RC Resettlement Committee RF Resettlement Framework ROW right-of-way RP Resettlement Plan SES socioeconomic survey sqm square meters TAMU Technical Assistance Management Unit VEI village environmental improvements WASA Water Supply Authority

PROJECT MAP

PEOPLE'S NORTHERN & CENTRAL REGIONS REPUBLIC OF WATER SUPPLY & URBAN DEVELOPMENT CHINA PROJECT

5.Sing Luang Namtha LUANG 6.Namor MYANMAR NAM THA 8.Ban Mom Xai BOKEO 7.Ngoi Xam Nua OUDOM XAY Houayxay LUANG HOUAPHANH Houn PRABANG Luang 9.Xamtay Prabang XAYABURY Phonsavanh 1.Nan XIENG Xayabury VIETNAM KHOUANG 2.Khoune

Phonhong Gulf of Tonkin VIENTIANE BORIKHAM XAY 10.Keo Oudon

4.Xanakham VIENTIANE Mekong River

3.Kenethao Thakhet THAILAND

LEGEND:

Capital City Savannakhet Secondary Town

Provincial Capital

Candidate Project Town International Boundary N Provincial Boundary

Project Province 0 50 100 M ekong River Pakse Kilometers National Road

Other Road

Notes: 1. Boundaries are not necessarily authoritative. 2. Numbers adjacent to town names indicate development priorities.

iii

SUBPROJECT MAP OF NAMTHA DISTRICT TOWN, LOUANG NAMTHA PROVINCE

THONGTHONGTHONG OMOMOM

B.VIENGTAI

20.98°N20.98°N

PEPE

NamThaNamThaNamTha NAMTHOUNGNAMTHOUNG

B.VIENGNEUA 20.97°N20.97°N ELEVATEDELEVATED RESERVOIRRESERVOIR

LOUANGNAMTHA AIRPORT LOUANGNAMTHA AIRPORT LOUANGNAMTHA AIRPORT

- Villages Information in the Service Area: NAMNGENNAMNGEN No. of ID Village Name Total Female Main Water HHs with HHs Population Population Source Latrines 1 B. VIENGNEUA 278 1133 - - - - - 20.96°N20.96°N 2 B.VIENGTAI 118 557 - - - 20.96°N20.96°N - - 3 B.LOUANG 318 1806 - - - - - 4 B.KHON 191 1045 - - - TaluangTaluang - - NamNam 5 B.DONKHOUN 162 889 - - - - PHIENGNGAMPHIENGNGAM - PHIENGNGAMPHIENGNGAM 6 B.MAI 75 354 - - - B.LOUANG - PROPOSEDPROPOSED WTPWTP NANOINANOI - (Option(Option(Option 1)1)1) 57 330 - - - 7 B.PASAK - - 20.95°N20.95°N NamLeuyNamLeuy 8 B.POUNG 157 975 - - - NamLeuyNamLeuy - - B.POUNG 9 B.PHOXAISAVANG 135 793 - - - - B.KHON - 10 B.THA-OR. 58 297 - - - B.PASAK - -

11 B.NALEU 67 468 B.DONKHOUN

12 B.DONMOUN 145 859 NamThaNamThaNamTha NamThaNamThaNamTha 20.94°N20.94°N KEY MAP B.MAI 22°N22°N22°N NAMTHA DISTRICT  B.THA-OR 20°N20°N20°N 20°N20°N20°N PROPOSEDPROPOSED WTPWTP NamLeuNamLeu (Option(Option(Option 2)2)2)

20.93°N20.93°N 18°N18°N18°N B.NALEU

16°N16°N16°N B.PHOXAISAVANG

101.38°E 101.38°E 101.38°E 101.39°E 101.39°E 101.39°E 101.4°E 101.4°E 101.4°E 101.41°E 101.41°E 101.41°E 101.42°E 101.42°E 101.42°E 101.43°E 101.43°E 101.43°E 101.44°E 101.44°E 101.44°E 101.45°E 101.45°E 101.45°E

14°N14°N14°N

98°E 98°E 98°E 100°E 100°E 100°E 102°E 102°E 102°E 104°E 104°E 104°E 106°E 106°E 106°E 14°N14°N14°N108°E 108°E 108°E

98°E 98°E 98°E 100°E 100°E 100°E 102°E 102°E 102°E 104°E 104°E 104°E 106°E 106°E 106°E 108°E 108°E 108°E 98°E 98°E 98°E 100°E 100°E 100°E 102°E 102°E 102°E 104°E 104°E 104°E 106°E 106°E 106°E 108°E 108°E 108°E B.DONMOUN

20.92°N20.92°N Legend: Village boundary MCTPC LAO PDR Bridge Department of Housing and Base Map - Namtha Urban Area ( LOUANG NAMTHA ) Road Stream / River 0 500 1000 2000m. Urban Planning WAC Programme Approved by: Graham Jackson Dwg. No. : NT-PD-01 Garden Slight forest Northern and Central Regions Water Supply and Checked by: Graham Jackson Date : 04/Nov/07 Fish pond Dense forest ( 3.3 centimeter = 1 kilometer ) Sanitation Sector Project (NCRWSSP) Designed by: khanthachack .S Projection : Lon/Lat (WGS 84) Rice field Buildings / Houses ADB-Grant No. 0016-LAO Digitized by: khanthachack .S Scale : 1/30.000 Slash and burn Grass land

I. INTRODUCTION

1. This short Resettlement Plan (RP) for Namtha District Town in Louang Namtha Province is prepared based on an initial assessment of the land acquisition and resettlement (LAR) impacts during subproject preparation for the Northern and Central Regions Water Supply and Sanitation Sector Project from November 2008 to February 2009. The LAR impacts in Namtha District Town are insignificant1, or ADB category B. The purpose of this RP is to ensure that all affected people (APs) will be compensated at replacement cost at current market value for their losses, and provided with rehabilitation measures so they are at least as well off as they would have been in the absence of the Project. The RP (i) identifies the legal and policy frameworks of the Lao Government and appropriate ADB guidelines; (ii) sets out procedures and policies on LAR to guide mitigation of impacts during project implementation; (iii) identifies an initial IOL and (iv) includes an estimated budget for implementing this RP.

2. This short RP should be read together with the Appendix on non variable information on resettlement procedures for the 3d Phase. This Appendix contains the revised information of the Resettlement Framework on the definition of terms, legal framework, project principles, voluntary contributions, entitlements, roles and responsibilities of EA, PCU, PIU and consultants, payment procedures, reserve fund, internal and external monitoring procedures and reporting. The current short RP contains the subproject’s rough estimate of losses. It will be updated after the detailed design is completed and the DMS done.

II. THE SUBPROJECT AND SCOPE OF LAR

A. The Subproject Description

3. The Project will benefit about 97,000 people by 2015 in 12 subproject towns. About 30,000 people (or 30%) are estimated to be urban poor. An additional 90,000 rural poor in surrounding areas will indirectly benefit from improved roads access to urban markets and government services. The Project aims to provide safe, reliable and affordable piped water supply, essential urban infrastructure, and village environmental improvements in 12 small district towns2 located in 8 provinces in the northern and central regions of Lao PDR. The Project will also strengthen water sector regulation, policy development and sector sustainability by providing support to the regulating authority and promoting policy, tariff and institutional reform. It has a strong focus on community participation that complements the Project’s objectives of reducing poverty, and promoting health and hygiene within communities. As a sector loan project, the design of the Project encourages a demand-based approach.

4. The subproject in Namtha District Town is one of 12 candidate subproject towns selected in the sector Project. Namtha District Town consists of 12 villages with a total population of 9,488 in 2007, of which 4,621 are female. The remaining 11 subproject towns include: in the first phase: (i) Nan, Luang Prabang Province, (ii) Kenethao, Sayaboury Province and, (iii) Houn, Oudomxay Province, in the second phase: (iv) Keo Oudom, and (v) Xanakham in Vientiane Province; (vi) Khoun, Xiangkhoang Province;

1 LAR must be insignificant for each candidate subproject town in order for it to meet Project eligibility (see para 19). 2 Provincial and district towns, with populations ranging from 5,000 to 20,000 are classified as small towns. Most of these small towns do not have piped water supply with house connections. These towns also lack the essential urban infrastructure and services.

(vii) Xamtay, Huaphanh Province; (viii) Sing, Louang Namtha Province; in the third phase: (ix) Ngoi, Luang Prabang Province; (x) Namor, Oudomxay Province; (xi) Namkeung, Bokeo Province.

5. The Water Supply Development for Namtha aims to provide safe, affordable, reliable piped water supply with individual household connections to communities within 12 core villages3. The water supply scheme is planned to supply 120 Lpcd by 2030 to 80% of the population of the core villages’ in Y2030. A provision is also made for water use by the airport facilities including fire fighting. The subproject will include: (i) piped water supply system, (ii) public sanitation facilities, (iii) some improvement of roads in Ban Louang if funds permit.

6. This component will include the construction of: (i) a pump intake at the Nam Tha river, about 1 km of the town center; (ii) a raw water transmission main; (iii) a water treatment plant (WTP) with presedimentation, flocculation, sedimentation, rapid gravity filtration and chlorination facilities, plant office, and small water testing laboratory; (iv) a clear water reservoir at the WTP site and transmission main which will deliver treated water to the town; and (v) individual metered service connections.

7. The Urban Environmental Improvement Component will improve: selected drainage, and public sanitation facilities in Namtha’s core villages. It will: (i) upgrade the drainage system to relieve annual flooding and waste water from the improved sanitation facilities; (ii) upgrading of gravel roads; and (iii) install water supply and toilets with septic tanks in the centre of town. The sanitation facilities will be proposed in detail later in extended consultation with inhabitants of the core villages.

B. The Scope of Land Acquisition and Resettlement

1. General

8. The Project will entail temporary impacts during construction when the water supply pipe network is laid out and during some improvements of road and drainages.

9. Some permanent impacts will take place due to placement of water treatment plants and improvements in roads and roadside drains. Land acquisition for the roads improvement will include the right-of-way as much as possible and where possible, road improvement will be within the existing alignments.

10. Part of the participation, awareness and community actions subcomponent, village environmental improvements (VEI) may involve minor land acquisition. Improvements may include footpaths and tertiary drainage. Sanitation facilities will also be decided upon during that time. As these improvements are demand-driven, the exact scope and land requirements will not be known until implementation and will fall under the category of directly benefiting communities and involving community decision- making and management for which no resettlement actions are required.

3 Louang, Khon, Donkhoun, Mai, Pasak, Poung, Phoxaisavang, Tha-Or, Naleu, Donmoun, Viengtai, Viengneua

2. Scope

11. Village-level impacts are in Attachment 1. One of the criteria for Project eligibility is that LAR shall be insignificant for each subproject town. The scope of LAR in Namtha subproject town is “insignificant” as the number of households experiencing major impacts4 is only two (9 APs) (at the WTP site). Sludge from the WTP will go directly to the river or in a waste land area adjacent to the mountain of the WTP.

12. Land acquisition and resettlement will affect a total 310 households (1,739 APs), mostly temporarily. (See also Table 1) No households are expected to require relocation. 307 Households (771 APs) included in the above will experience a temporary loss of land that will be used during pipe-laying activities (22 of these households have a pipe passing their agricultural land and the remaining households have residential land). This land will be restored and returned to the AP and therefore will not be compensated. Impacts from water supply works are very minor for each of the families and mostly involve broken cement slabs in front of the houses to allow for the pipe laying. Such minor losses, including temporary, will be compensated. (See also Table 2)

13. The roads fall under the category of distributor roads5 for which ROW is 12 meter. The width of the roads will be so designed as to avoid loss of land. The land to acquired for the road improvement is mostly land in the ROW zone. No households are expected to require relocation or have major impacts from road improvements. Losses will mostly be permanently removed cement slabs and veranda roofs (from bamboo and wood) according to current material costs. In case there is any land loss outside the ROW, the land should be compensated according to current market prices for land.

14. Drainage work will acquire some land, around 1 meter width between houses and the road. This is mostly land in the ROW and will not affect houses or structures.

15. Because road improvements and water pipe lines laying will be done in the most densely populated area of town, businesses will be affected (initial count indicate that there are a potential 187 businesses among the affected households). Most of those businesses are small and sell food, fresh or in dried form, and the losses will be minimal. The duration of the civil works will have to be shortened as much as possible in order to minimize losses in income.

16. The water pipe laying might affect some fruit trees and rubber seedlings (an initial count of 49 trees). If pipe laying takes place in the wet season 9 households with rice land might be affected temporarily and will have to be compensated accordingly. If pipe laying takes place in the dry season 1 household’s vegetables might be affected temporarily.

4 Major impact is defined as those households that will be (i) physically displaced from housing, and/or; (ii) lose more than 10% of their income-generating source; and/or (iii) lose more than 40% of their residential structure. 5 According to Agreement from the minister on the rules and regulations of town planning, no. 209, 05/02/1996, MCTPC.

Table 1: Affected Households and Persons in Namtha Impact Affected Total Households and APs Major Impacts Households Business

Perm Temp

HHs HHs HHs APs EMHH % FHH % HHs APs EMHH FHH HHs Drainag e/Rd 0 0 0 0 0 0 0 0 0 0 0 0 0 Water Supply 3 307 310 1,739 42 13.55 66 21 2 9 2 0 187 Total 3 307 310 1,739 42 13.55 66 21 2 9 2 0 187 AP=affected person; EMHH=ethnic minority households; FHH=female-headed households; HH=household. Source: Initial IOL by PIU of Namtha District Town, 2009. *1 structures outside land title markers

Table 2: Loss of Land, Structures and Trees in Namtha Impact Land Loss (sqm) Households Loss at Structural Loss Trees Houses (sqm) Households number Residential Agriculture Government Houses (no) Perm Temp Perm Temp Perm Temp Perm Temp Perm Temp Drainage /Rd ------Water Supply 2,940 10,000 1,827 0 126.8 0 0 0 1,810 49 Total - 2,940 10,000 1,827 0 126.8 0 0 0 1,810 49 AP=affected person; EM=ethnic minority; HH=household; perm=permanent; sqm=square meters; temp=temporary Source: Initial IOL by PIU of Namtha District Town, 2009.

3. Vulnerable groups

17. There are 14 female-headed households (16 %) out of the 90 interviewed households in the core villages. The majority of the interviewed households is Lao (66 households, 66%) under the main language group of Tai Kadai (also called Lao Loum). Many of them are actually from Tai Yuan descent, also an ethnic group under the main Tai Kadai language group and they call themselves just ‘Lao’ nowadays. Also under this main language group are 28 Tai Dam households (26%) but they are patrilateral like many ethnic groups under the Mon-Khmer language group. There are 12 Hmong households (11%), under the Sino-Tibetan main language group (also called Lao Sung) among the interviewed households in the core villages. Also there are 3 Khmu households (3%) who are under the Mon-Khmer main language group (also called Lao Theung). Extra attention will be paid during detailed design to minimize LAR impacts for the households of non Tai Kadai descent and the female headed households.

18. Only 1 of the interviewed households in the core villages and is determined to be very poor.

19. Two households will experience major impacts or major loss because of land acquisition for the WTP. Because these household are loosing more than 10% of their

productive land they are severely affected and they will have to be compensated accordingly. As they are vulnerable households6 they should receive special assistance.

III. LEGAL FRAMEWORK AND PROJECT PRINCIPLES

A. Legal Framework

1. Laws and Regulations

20. The policy framework and entitlements in this RP have been built upon the laws of the Government of Lao PDR, principally the Constitution (1991) and the Land Law (1997, 2003), the Road Law (1999), Decree 192/PM on Compensation and Resettlement (July 2005), the Regulations for Implementing Decree 192/PM and Technical Guidelines for Compensation and Resettlement of People Affected by Development Projects (November 2005), Asian Development Bank (ADB) Policy on Involuntary Resettlement (1995), and Government approved RPs for other ADB projects. Lao Laws and Regulations and ADB policy on Resettlement are also discussed in the Appendix to this short RP on non variable information under separate cover.

21. The Land Law provides the issuance of a Land Title, which attests provisional ownership rights to use agricultural as well as forestland (Articles 17-18 and 21-22). Land titling is being undertaken under the AusAid/World Bank project in a number of towns. Under this project Land Titles and Land Survey Certificates are issued. It has not been completed in Namtha project town for all villages although the initial survey is on the way. For the villages7 where Land Titling has not been done yet APs will only have Land Use Rights Certificates (Form 01), Land Tax Payment Receipts and/or Residency Certificates. Form 01 are certificates of land use for taxation and are considered evidence of land use but not as legal title.

22. The recent changes in the Government of Lao PDR legislation related to compensation and resettlement in development represents a significant improvement in the rights of citizens when their livelihoods, possessions and society are affected by development projects.

23. Both Lao Law and ADB policies entitle APs to compensation for affected land and non-land assets at replacement cost. However, definition of severely affected APs varies between ADB (OMF2 para 5) at 10% and Decree 192/PM (Article 8) at 20% of income generating assets affected. However in accordance with Decree 192/PM (Article 6) which entitles all APs to economic rehabilitation assistance to ensure they are not worse off due to the Project, the 10% definition of severely affected will be adopted as part of the Project’s resettlement policy.

6 Vulnerable: female headed, ethnic minority, poor 7 Louang, Khon, Donkhoun, Mai, Pasak, Poung, Phoxaisavang, Tha-Or, Naleu, Donmoun, Viengtai, Viengneua

B. Project Provisions and Principles

1. Eligibility

24. Identification of APs was carried out as part of the social assessment during the subproject preparation. Inventory of APs will continued after revisions in design and will finalized at DMS. Lack of legal rights will not affect the eligibility to compensation for land use, structure, and income losses.

25. The cut-off date for Namtha that sets the eligibility for entitlement is 26 January 2009.

2. Categories of APs

26. Based on the initial design of the piped water systems and urban improvements, the following categories of persons are expected to be affected: - those with permanent land use rights: this includes those who have the legal and legalizable land use rights, as in agricultural land, and have legal title of the land or a certificate to ensure the right of land use. They are entitled to full compensation. - those with temporary land use rights: this includes those who have the right to use land temporarily with a written/verbal permit issued by the village or commune authorities and who do not meet the legalization criteria as users with permanent rights. They will not be entitled to compensation for the affected land but will receive an allowance to offset anticipated loss of income. - occupiers whose trees and standing crops are affected: they will be compensated at full market prices regardless of the legal status of land use rights. - people losing part of their residential or commercial land - people losing part of their house or other physical structures they constructed - people temporarily loosing income during implementation of the civil works.

3. Type and level of loss

27. The following categories and types and levels of Project-induced impacts in the realm of resettlement are foreseen: (i) loss of land use; (ii) partial loss of residential or commercial structures; (ii) temporary loss of income; (iii) loss of standing crops and trees; (iv) loss of community assets, and (v) loss of government waste land.

28. Loss of land use: residential, commercial and commune land will be acquired for the construction of the WTP. The water treatment plant will acquire land from two individual households. Water pipes will be laid within the existing ROW to avoid any unnecessary LAR impacts. Where the main pipes will cross agricultural fields they will be laid deeper than the usual 1.30 m. Temporary loss of land is land that will be used during construction or pipe-laying activities, and will be restored and returned to the AP. There

is little distinction between residential land and ‘garden’ land so that residential land can include trees and flowers.

29. Loss of residential or commercial structures: Residential or commercial structural losses will be minimized as much as possible. Partial loss of structures or temporary affects may be expected during construction. Complete loss of structures will be avoided by reducing the width of the carriage way and drain.

30. Structural loss will be permanent or temporary. Many of the structures that will be affected (i.e. fences) are made of temporary materials (i.e., bamboo and wood), which are easily moveable. Some structures also will include cement slabs in front of shops or homes that will be affected due to piped water supply and roads improvement. The Project will minimize these impacts during detailed design. During construction, access to shops and homes will not be restricted, as temporary planks will be provided to owners. The Project will also provide cement covers over road-side drains to ensure continued access after construction from the road to the property.

31. Loss of business and income opportunities: This includes shop owners, employees, mobile stalls and other non-agricultural income generation activities. It is not foreseen that any of the identified APs will loose their income permanently or for more than 10% of total productive assets.

32. Loss of standing crops, might occur during the construction of piped systems, and will be temporary. Loss of trees might occur during the laying of the main transmission lines for raw and treated water and this will be permanent loss.

33. Some loss of governmental, and public assets will occur.

4. Entitlements

34. The Project entitlements have been designed to provide compensation, resettlement and rehabilitation for lost assets and restore or enhance the livelihoods of all categories (directly and indirectly affected, title holders and non-title holders such as Form 01) of affected people. The entitlement matrix for the Project is in Table 2 of the Appendix for non variable information on resettlement. Entitlements are based on the categories of APs as previously defined.

35. The rates for compensation and cash entitlements for rehabilitation and allowance payable to APs have been adjusted over the last 3 years, based on actual inflation8.

8 2005: 7.16, 2006: 6.81, 2007: 4.51, 2008: 8.05 (Nov’ 08) (Bank of Lao PDR website)

IV. PARTICIPATION AND CONSULTATION

36. This short RP was prepared by the executing agency (EA), with the assistance of the P. B consultants and in consultation with respective provincial and district authorities. During IPSA interviews with selected households from the total of 109 interviewed households of the core villages in the socio-economic survey were held. A summary of consultations with all stakeholders is given in Attachment 4. The EA for the Project is the Ministry of Public Works and Transport (MPWT). The Project Coordination Unit (PCU) that has been established under MPWT will coordinate LAR activities during the implementation of the subprojects. During the planning stage of the subproject, the following steps were taken.

A. Preparation of Subproject Resettlement Plan

37. Step 1. A team of social surveyors was engaged for conducting socioeconomic surveys and resettlement census. In 2007, the social team conducted surveys in Namtha District.

38. Step 2. From end 2008, initial consultations were made with various stakeholders at the provincial, district and village levels in Namtha, including villagers and members of mass organizations. These consultations were held during initial town visit to Louang Namtha province and Namtha district. Individuals that visited Namtha included MPWT/DHUP, PCU and the P. B consultants team. A list of priorities was noted for Namtha subproject town.

39. Step 3. The RF and Lao Decree and Regulations on Resettlement were presented and explained in a meeting with the District Governor in January 2009. Also a meeting on resettlement procedures was held with the PIU Chief and Staff. These staff distributed the PIB to the potential APs and village heads. APs were informed of their rights to lodge grievances about the LAR-related issues. The responsibility to set up a DRC and grievance redressal procedures were discussed and agreed upon. Also guidelines were given to minimize and avoid any unnecessary LAR during a transect walk.

40. Step 4. In January 2009, the subproject scope was shared by the P. B engineers with Namtha district people. During these discussions provincial officials from Louang Namtha Province also attended. Priorities for the subproject were reconfirmed and core villages agreed upon.

41. Step 5. A social assessment team visited Namtha in February 2009. Interviews with villagers and APs were conducted to determine their views about the subproject in Namtha during the IPSA.

42. Step 6. Data for the initial IOL have been collected by the PIU. The short RP was drafted and translated into Lao language and disclosed to PIU, district officials and representatives from mass organizations in a meeting.

B. Implementation of the Subproject RP

43. Participation and consultation with stakeholders in Namtha district and in Louang Namtha province will continue during subproject appraisal and implementation. Grievance redressal procedures will be disclosed again to APs before the commencement of LAR activities.

44. Step 7. After initial engineering designs had been completed a workshop in Namtha was conducted in February 2009 about all resettlement and DMS procedures and PIUs were explained in detail all the resettlement steps to be taken from initial social assessment to Construction. (See Attachment 2 in the Appendix to the RP on non variable information under separate cover). This workshop included a transect walk through the planned water supply and drainage system and interviews with village heads and vulnerable APs. PIU together with representatives of the mass organizations will conduct the DMS after detailed designs are completed. Individual losses will be calculated and recorded according to the local compensation rates and allowances. Based on that, PCU will prepare the compensation plan.

45. Step 8. The P. B consultant for Resettlement will visit Namtha again to share the RP, solve unclear data from DMS and agree on the compensation plan. After that, PCU will complete the RP.

46. Step 9. The final RP will be sent to the subprojects and ADB and compensation declarations for individual APs will be prepared and delivered to the APs per household by the PIU. APs then have 14 days the time to review the RP and sign and return the declarations or to make objections to the village head and GRC (see section C this section).

47. Step 10. After receipt of the signed compensation declarations by PIU, PIU can oversee payment. In case of objection, the problem first has to be solved before starting payment. Following approval by the ADB, the MPWT has the authority to coordinate the start of resettlement activities, either payment of compensations or restoration works.

C. Grievance and Redressal

48. Article 13 of Decree 192/PM outlines requires the Project to establish Grievance Redress Committees (GRC) after GOL approval of the project, but in advance of any resettlement activities. Because of the small scope of LAR, it was discussed that the DRC should appoint persons responsible for grievance, redressal and conflict resolution. The responsible persons could consist of:  Local government representatives (provincial and district)  Village Heads  Men and women representatives of AP households from each village (in addition to the Village Head)  Village elders, local level representative of mass organizations (including LWU and Lao Front for National Construction (LFNC) or non-benefit organizations  MPWT representative

49. APs who file a complaint will be exempted from all taxes, administrative, and legal fees. Complaints can be filed first at the village level and can be elevated firstly to the district level and secondly to the provincial level if APs are not satisfied. The APs may present their complaints to the concerned local administrative officials and resettlement committees. All grievances regarding any aspect of relocation or compensation shall be acted on within 30 days. Attempts should be made to settle the issues at the village level through community consultation, involvement of the social/resettlement specialist as required, the Lao Women’s Union, and any other concerned local-based organizations. All complaints and resolutions will be properly documented by the concerned resettlement committee and will be made available for review during post-evaluation and monitoring.

50. The consulted stakeholders will be able to inquire about any component during organized stakeholder consultation meetings and informally. The PIU will distribute the PIBs in which the grievance and conflict resolution procedure is explained to village heads and APs. During data collection for the initial IOL the APs were informed of their right to lodge grievances and they were informed when the short RP was ready for public viewing at the PIU’s office.

51. During preparation, DMS and the process of giving out compensation awards, APs continuously have the right to lodge grievances. APs will be informed during consultation, surveys and at the time of compensation, of their rights to grievance and the procedures for making a complaint.

V. IMPLEMENTATION ARRANGEMENTS

A. Roles and Responsibilities

52. The roles and responsibilities of EA, PCU, PIU and consultants can be found in the Appendix on non variable information.

53. A District Resettlement Committee (DRC) has been established in the Namtha district chaired by the District Governor. Members of the DRC would typically include representatives of OPWT, PNP, DAFEO, LWU, Lao Front for National Construction, and representatives of APs including ethnic groups. One member of the district resettlement committee will also be a member of the PIU, to help coordinate LAR activities with the civil works schedule. Also one of the DRC members will be the same person assigned as part of the Community Action Team (CAT) within the PIU, to ensure APs also benefit from the community-based activities under the Project. The DRC will work with the PIU in conducting consultation among APs, preparing final IOL and valuation of assets, identifying and allocating replacement land for those severely affected, ensuring smooth cooperation with local mass orgnizations, and resolving grievances. District officials will be trained in resettlement procedures as part of the Project’s implementation assistance and capacity building component.

54. ADB shall approve the civil works contract for the subproject to be financed from the loan proceeds after the Government has satisfactorily completed all land acquisition, and resettlement activities, including the establishment of rehabilitations measures. The timely availability of counterpart funds is necessary in order for this arrangement to work.

B. Project Budget

55. The estimated cost of LAR for the Ngoi subproject is initially estimated as 89,099,572 kip (10,482 US$) which includes the base LAR costs and a 20% reserve fund. These costs have been based on a rapid assessment of losses by the PIU, P. B consultants, and APs perceptions in February 2009. The calculation of LAR cost estimates for Namtha are in Table 3.

56. The above budget includes a reserve fund of 20% to accommodate the situations described in the Appendix on Non Variable Information and the additional situation of sudden price hikes that might occur after the final compensation calculation. Although unit cost prices are taken at the latest possible date before calculation of costs, or were adjusted according to official inflation rates from original date of supplication of unit costs form, prices are going up daily in the current volatile market.

57. An initial IOL and unit cost form have being prepared by the PIU (see Attachment 2 and 3) and the detailed IOL will be prepared at DMS. Based on the IOL the actual LAR costs will be calculated. The Government will be responsible for providing timely counterpart funds for all LAR activities.

58. If pipe laying takes place in the wet season 9 households with rice land might be affected temporarily and will have to be compensated accordingly (around 608,000 kip). If pipe laying takes place in the dry season 1 household’s vegetables might be affected temporarily and will have to be compensated (around 176,000 kip).

Table 3: LAR Costs Namtha Item Total US Dollars Amount (kip) (1 US$ = kip) 8500 1 Land Residential Land (permanent) - - Residential Land (temporary; not paid) 183,648,000 21,606 Agricultural Land (permanent) 16,200,000 1,906 Agricultural Land (temporary; not 6,491,000 764 paid) 2 Houses - - 3 Business - Temporarily affected during civil works* 34,436,435 4,051 4 Structures -

123,390,119 14,516

Item Total US Dollars Amount (kip) (1 US$ = kip) 8500 5 Trees -

7,644,600 899 6 Crops - annual yield 91,253,988.00 10,736 7 Other Assets - - Subtotal base Resettlement costs 272,925,142 32,109 Rehabilitation Allowances - Living Allowance 3 mnths - - Living Allowance 6 mnth 4,830,000 568.24 Repair Allowance 1,740,000 204.71 Special Assistance - - Transport Allowance - Subtotal Allowances 6,570,000 773 Sub Total LAR Costs 279,495,142 32,882 Total LAR Costs minus 1 million kip 74,759,879 8,795.28 Minus amounts < 50,000 kip 510,236 60.03 Total LAR Costs to be compensated 74,249,643 8,735.25 Reserve Fund 20% 14,849,929 1,747 Total LAR Costs 89,099,572 10,482 The costs and allowances are based on cost estimates for replacement costs at market value in Jan 2009 *1 road construction for 5 months and laying water pipe for 3 days *2 based on 20 kg/person/month; around 4.500 kip/kg rice

C. Implementation Schedule

59. Details on roles and responsibilities of all parties and on compensation payment procedures can be found in the Appendix to the RP on non variable information. All resettlement activities will be coordinated with the civil works schedule for the Namtha subproject. ADB will approve the civil works contract for the subproject to be financed from the loan proceeds after the Government has satisfactorily completed, in

accordance with the approved RP for the subproject, compensation payments and resettlement measures. Establishment of rehabilitation assistance shall be in place and the area required for civil works should be free of all encumbrances before the commencement of civil works.

D. AP Database

60. A database for IOL has been started during subproject preparation and will be maintained during implementation. A single file for each subproject town will be created, with individual worksheets for each subcomponent causing LAR impacts. The IOL will be updated after the detailed design survey is completed. New APs found during implementation will be added to the database. This database will be given to the subproject sites. APs from the first survey who will no longer be APs due to changes in the design will be given notice. A form for their signature for notification will be distributed (see Attachment 5) to the PIUs for their use.

Attachment 1: Village-level Impacts

No Namtha District Ethnicity Component Village Impact Village Name 1 Donmoun Lao, Tai Water supply- pipes Households will be temporarily All of this Yuan affected during laying of the pipe villages lines. expected to 2 Mai Lao, Tai WTP Households will be temporarily have water Yuan Sludge pond affected during laying of the pipe supply Water supply- pipes lines. 3 Households will be permanently affected by land acquisition for the WTP. 3 Pasak Tai Dam Water supply- pipes Households will be temporarily affected during laying of the pipe lines. 4 Louang Lao, Tai Water supply- pipes, Households will be temporarily Yuan, Tai road and drainage affected during laying of the pipe Dam improvements lines. Road and drainage improvements will only affect some businesses. 5 Khon Lao, Tai Water supply- pipes Households will be temporarily Yuan affected during laying of the pipe lines. 6 Donekhoune Lao, Tai Water supply- pipes Households will be temporarily Yuan, Tai affected during laying of the pipe Kao lines. 7 Tha Or Lao, Khmu, Water supply- pipes Households will be temporarily Tai Yuan affected during laying of the pipe lines. 8 Phonexaysavang Khmu, Tai Water supply- pipes Households will be temporarily Dam, Tai affected during laying of the pipe Yuan, Lao lines. 9 Nalue Tai Dam, Water supply- pipes Households will be temporarily Khmu affected during laying of the pipe lines. 10 Poung Tai Dam Water supply- pipes Households will be temporarily affected during laying of the pipe lines. 11 Viengtai Lao Yuan Water supply- pipes Households will be temporarily affected during laying of the pipe lines. 12 Viengneua Lao Yuan Water supply- pipes Households will be temporarily affected during laying of the pipe lines.

Attachment 2: District Unit Cost Estimates

Estimations by PIU

Attachment 3: Inventory of Losses

Estimations by PIU and TA Resettlement

Attachment 4: Record of Consultations with APs

Number of Date Agency/Person Type of Participants Discussion/Responses/Outcomes Participants male female 2006 ADB, MCTPC 3 1 Staff  voluntary donation mechanism  voluntary donation according to the agreed criteria 2007 Namtha district 21 7 Village Heads and Mass  Introduced the purpose and town and villages Organizations, methodology of socioeconomic Social survey team stakeholders, potential APs survey (SES) and resettlement census in villages  SES of 109 heads of households (12 core villages) Nov ‘08 Namtha district 6 0 PIU staff, Prov. Water  Discussions on lay-out and civil town and villages Supply , District Water works PIU, P. B Supply, District Governor  Identification for WTP location Consultants engineers Jan ‘09 Namtha district 4 0 Dep. District Governor, PIU  Lao Decree and Regulations town, P. B  RF Consultant  Need for DRC Resettlement  Need for cut-off data  Need for Grievance and Redressal Responsible Persons  Steps for PIU  Form for IOL AP Jan ‘09 Namtha district 7 0 PIU staff, Prov. Water  Agreement on Project Procedures town Supply , District Water  Discussion on pricing P. B Consultants Supply, District Governor  Agreement on core villages engineers, MPWT Feb ‘09 Namtha district 22 3 PIU Chief, PIU accountant  Explanation of initial RPs and IOL town, P. B TA (♀), PIU staff District,  preparation and training for DMS Resettlement District OPWT (DRC), Dep  further explanation of resettlement Head Water Supply District, procedures Deputy Lao Front (DRC), District Police (DRC), District Justice (DRC), Deputy Party Control (DRC), Chief District Land (DRC), District Deputy LWU (♀; DRC), Village Heads of Ban Tha-Or, Donmoun, Nalue, Phoxaisavang (in DRC), Deputy Heads of Ban Pasak, Phoung, Mai (♀) (heads in DRC), Lao Front from Ban Poung, Mai, Deputy Party Control Ban Pasak, Representatives of APs from Ban Mai and Ban Luang (DRC) Feb ‘09 Namtha district 3 staff 14 PIU Staff, Staff District  Assess social impact of project town, TA Social 7 village household Water Supply, Village especially on vulnerable groups Assessment heads members heads, villagers  Perceptions of APs 14 household members . Date = date the consultation took place . Agency/person = agency/person conducting the consultations . Participants = Ministries, NGOs, affected people, local communities, etc. that participated in the session . Discussion/Responses/Outcomes = summarize what was discussed, participants reactions, and key outcomes

Date:

Signature: The Chief of PIU …………………….

Attachment 5: Form for Consultation with no longer APs

LAO PEOPLE’S DEMOCRATIC REPUBLIC

Province:

District:

Persons who were APs in the previous design should be told if they are no longer affected after revision of the design. They can sign after the visit by the responsible persons.

No. Name Village Date Visited Signature Signature Visit by whom of former of former AP AP’wife

Certified by the Chief of the Village: …………

The Chief of PIU …………………….

NORTHERN AND CENTRAL REGIONS WATER SUPPLY AND SANITATION SECTOR PROJECT

NGOI DISTRICT TOWN, LUANG PRABANG PROVINCE SHORT RESETTLEMENT PLAN UPDATE

Department of Housing and Urban Planning (DHUP) Ministry of Public Works and Transport (MPWT)

October 2009

TABLE OF CONTENTS

ABBREVIATIONS ii PROJECT MAP iv SUBPROJECT MAP OF NGOI DISTRICT TOWN, LUANG PRABANG PROVINCE v

I. INTRODUCTION 1

II. THE SUBPROJECT AND SCOPE OF LAR 1 A. The Subproject Description 1 B. The Scope of Land Acquisition and Resettlement 2 1. General 2 2. Scope 3 3. Vulnerable groups 5

IV. PARTICIPATION AND CONSULTATION 8 A. Preparation of Subproject Resettlement Plan 8 B. Implementation of the Subproject RP 9 C. Grievance and Redressal 10

V. IMPLEMENTATION ARRANGEMENTS 10 A. Roles and Responsibilities 10 B. Project Budget 11 C. Implementation Schedule 12 D. AP Database 13

Attachments Attachment 1: Village-level Impacts: 14 Attachment 2: District Unit Cost Estimates 15 Attachment 3: Inventory of Losses 16 Attachment 4: Record of Consultations with APs 17 Attachment 5: Form for Consultation with no longer APs 19 Attachment 6: User Agreement Forms for Use of Land/Trees 20

Tables Table 1: Affected Households and Persons in Ngoi 4 Table 2: Loss of Land, Structures and Trees in Ngoi 4 Table 3: LAR Costs 11

ABBREVIATIONS

PROJECT MAP

PEOPLE'S NORTHERN & CENTRAL REGIONS REPUBLIC OF WATER SUPPLY & URBAN DEVELOPMENT CHINA PROJECT

Phonhong Gulf of Tonkin VIENTIANE BORIKHAM XAY 10.Keo Oudon

4.Xanakham VIENTIANE Mekong River

3.Kenethao Thakhet THAILAND

LEGEND:

Capital City Savannakhet Secondary Town

Provincial Capital

Candidate Project Town International Boundary N Provincial Boundary

Project Province 0 50 100 M ekong River Pakse Kilometers National Road

Other Road

Notes: 1. Boundaries are not necessarily authoritative. 2. Numbers adjacent to town names indicate development priorities.

iii

SUBPROJECT MAP OF NGOI DISTRICT TOWN, LUANG PRABANG PROVINCE

KEY MAP 22°N22°N22°N 20.615_N20.615_N20.615_N22°N22°N22°N

NGOI DISTRICT  20°N20°N20°N 20.61_N20.61_N20.61_N B.VIENGKHAM 18°N18°N18°N

20.605_N20.605_N20.605_N

16°N16°N16°N

NamBakNamBak B.LAKHON 20.6_N20.6_N20.6_N 14°N14°N14°N

100°E100°E100°E 102°E102°E102°E 104°E104°E104°E 106°E106°E106°E 108°E108°E108°E

20.595_N20.595_N20.595_N

NamBakNamBak B.NONGBIA 20.59_N20.59_N20.59_N

Total_HHs_With_Latrine B.PAKBAK in each villages 20.585_N20.585_N20.585_N 179 7 B.SOPHOUN NamNam OuOu 68 B.NONGKIEW-TAI 20.58_N20.58_N20.58_N B.NONGKIEW-NEUA 20.58_N20.58_N20.58_N 170 54 B.PAKBAK B.NONGBIA B.NONGKIEW-NEUA NamNam OuOu B.VIENGKHAM 20.575_N20.575_N20.575_N 74 193 B.LAKHON B.NONGKIEW-TAI

20.57_N20.57_N20.57_N Graph of: Village_Data1 MUANGNGOIMUANGNGOI

B.SOPHOUN 1312 ProposedProposed 1400 On GROUND RESERVOIR 20.565_N20.565_N20.565_N 1400 1200 1200 1000 1041 659 800 660 1000 903 600 262 367 287 800 400 240 600 Houay-HounHouay-Houn ProposedProposed 200 178 400 472 510 154 96 0 200 WTP 20.56_N20.56_N20.56_N 440 68 8 0 191 53 6 ProposedProposed 118 ProposedProposed Total_Pop 185 5 6 B.LAKHON 88 INTAKEINTAKEINTAKE Female_Pop 13 B.VIENGKHAM 17 B.NONGBIA 4 B.PAKBAK No_Of_HHs B.NONGKIEW -NEUA

102.525_E 102.525_E 102.525_E 102.53_E 102.53_E 102.53_E 102.535_E 102.535_E 102.535_E 102.54_E 102.54_E 102.54_E B.NONGKIEW102.545_E 102.545_E 102.545_E -TAI 102.55_E 102.55_E 102.55_E 102.555_E 102.555_E 102.555_E 102.56_E 102.56_E 102.56_E 102.565_E 102.565_E 102.565_E 102.57_E 102.57_E 102.57_E 102.575_E 102.575_E 102.575_E 102.58_E 102.58_E 102.58_E 102.585_E 102.585_E 102.585_E 102.59_E 102.59_E 102.59_E 102.595_E 102.595_E 102.595_E 102.6_E 102.6_E 102.6_E 102.605_E 102.605_E 102.605_E 102.61_E 102.61_E 102.61_E 102.615_E 102.615_E 102.615_E 102.62_E 102.62_E 102.62_E 102.625_E 102.625_E 102.625_E 102.63_E 102.63_E 102.63_E 102.635_E 102.635_E 102.635_E

102.525_E 102.525_E 102.525_E 102.53_E 102.53_E 102.53_E 102.535_E 102.535_E 102.535_E 102.54_E 102.54_E 102.54_E 102.545_E 102.545_E 102.545_E 102.55_E 102.55_E 102.55_E 102.555_E 102.555_E 102.555_E 102.56_E 102.56_E 102.56_E 102.565_E 102.565_E 102.565_E 102.57_E 102.57_E 102.57_E 102.575_E 102.575_E 102.575_E 102.58_E 102.58_E 102.58_E 102.585_E 102.585_E 102.585_E 102.59_E 102.59_E 102.59_E 102.595_E 102.595_E 102.595_E 102.6_E 102.6_E 102.6_E 102.605_E 102.605_E 102.605_E 102.61_E 102.61_E 102.61_E 102.615_E 102.615_E 102.615_E 102.62_E 102.62_E 102.62_E 102.625_E 102.625_E 102.625_E 102.63_E 102.63_E 102.63_E 102.635_E 102.635_E 102.635_E 102.525_E 102.525_E 102.525_E 102.53_E 102.53_E 102.53_E Female_Headed_HHs102.535_E 102.535_E 102.535_E 102.54_E 102.54_E 102.54_E 102.545_E 102.545_E 102.545_E 102.55_E 102.55_E 102.55_E 102.555_E 102.555_E 102.555_E 102.56_E 102.56_E 102.56_E 102.565_E 102.565_E 102.565_E 102.57_E 102.57_E 102.57_E 102.575_E 102.575_E 102.575_E 102.58_E 102.58_E 102.58_E 102.585_E 102.585_E 102.585_E 102.59_E 102.59_E 102.59_E 102.595_E 102.595_E 102.595_E 102.6_E 102.6_E 102.6_E 102.605_E 102.605_E 102.605_E 102.61_E 102.61_E 102.61_E 102.615_E 102.615_E 102.615_E 102.62_E 102.62_E 102.62_E 102.625_E 102.625_E 102.625_E 102.63_E 102.63_E 102.63_E 102.635_E 102.635_E 102.635_E B.SOPHOUN

LAO PDR Legend: Project boundary MCTPC Bridge Base Map - Ngoi Urban Area ( Louang Prabang ) B.MAI Core Villages Department of Housing and Stream / River Road 0 500 1000 2000m. Urban Planning Approved by: Graham Jackson Dwg. No. : NG-PD-01 WAC Programme Garden Slight forest Northern and Central Regions Water Supply and Checked by: Graham Jackson Date : 04/July/07 Fish pond Dense forest ( 3.3 centimeter = 1 kilometer ) Sanitation Sector Project (NCRWSSP) Designed by: khanthachack .S Projection : Lon/Lat (WGS 84) Rice field Buildings / Houses Digitized by: khanthachack .S Scale : 1/30.000 Slash and burn ADB-Grant No. 0016-LAO Grass land

I. INTRODUCTION

1. This short Resettlement Plan (RP) for Ngoi District Town in Luang Prabang Province is prepared based on an assessment of the land acquisition and resettlement (LAR) impacts during subproject preparation for the Northern and Central Regions Water Supply and Sanitation Sector Project from November 2008 to February 2009 and updates based on the DMS. The LAR impacts in Ngoi District Town are insignificant1, or ADB category B. The purpose of this RP is to ensure that all affected people (APs) will be compensated at replacement cost at current market value for their losses, and provided with rehabilitation measures so they are at least as well off as they would have been in the absence of the Project. The RP (i) identifies the legal and policy frameworks of the Lao Government and appropriate ADB guidelines; (ii) sets out procedures and policies on LAR to guide mitigation of impacts during project implementation; (iii) identifies an IOL and (iv) includes an estimated budget for implementing this RP.

2. This short RP should be read together with the Appendix under separate cover on Non Variable Information on Resettlement Procedures for the 3d Phase. This Appendix contains the revised information of the Resettlement Framework on the definition of terms, legal framework, project principles, voluntary contributions, entitlements, roles and responsibilities of EA, PCU, PIU and consultants, payment procedures, reserve fund, internal and external monitoring procedures and reporting. This Appendix has been distributed to the 4 subprojects of Phase 3 before starting the inventory of losses. The current short RP contains the subproject’s specific information and an estimate of losses based on the DMS.

II. THE SUBPROJECT AND SCOPE OF LAR

A. The Subproject Description

4. The subproject in Ngoi District Town is one of 12 candidate subproject towns selected in the sector Project. The remaining 11 subproject towns include: in the first phase: (i) Nan, Luang Prabang Province, (ii) Kenethao, Sayaboury Province and, (iii) Houn, Oudomxay Province; in the second phase: (iv) Keo Oudom, and (v) Xanakham in Vientiane Province; (vi) Sing, Louang Namtha Province; (vii) Xamtay, Huaphanh

Province and, (viii) Khoun, Xiangkhoang Province; in the third phase: (ix) Namor, Oudomxay Province; (x) Nam Keung in Bokeo Province and, (xi) Namtha, Louang Namtha Province.

5. The Water Supply Development for Ngoi aims to provide safe, affordable, reliable piped water supply with individual household connections to communities within 5 core villages in Ngoi District and 2 in Nam Bak District3 with a total population of 5,016 in 2007 of which 2,396 are female. 2 Villages4 with a population of 1,256 in 2007 of which 600 are female, will be included in the capacity design of the WTP but will not have connections. The water supply scheme is planned to supply 90% of the projected population of the core villages with 120 Lpcd by 2027. The subproject will include: (i) piped water supply system, (ii) public sanitation facilities, and (iii) improvement of the drainage system.

6. This component will include the construction of: (i) an intake tower built into the riverbank of the Houay Houn river about 1,5 km upstream of the center of town; (ii) a raw water transmission main; (iii) a 1,790m3/day capacity water treatment plant (WTP) on a plateau on the mountain on the opposite side of the road from the intake; it will consist of presedimentation, flocculation, sedimentation, rapid gravity filtration and chlorination facilities, plant office, and small water testing laboratory; (iv) a clear water reservoir at the WTP site and transmission main which will deliver treated water to the town; and (v) individual metered service connections.

7. The proposed urban environmental improvements will realign and resection 298m of road with open-lined roadside drain. Upgrading of culverts and the outlet will from part of this work. The subproject will also procure a small tuk-tuk or tractor based maintenance vehicle and vacuum tanker and basic tools for servicing septic tanks and operation and maintenance of the drainage systems. A clay-line pit, located on flood-free land outside the core area, will be constructed for septage disposal. Other sanitation facilities will be proposed later in extended consultation with inhabitants of the core villages.

B. The Scope of Land Acquisition and Resettlement

1. General

8. The Project will entail temporary impacts during construction when the water supply pipe network is laid out.

9. Permanent impacts will take place due to placement of intake and water treatment plant, improvements in roads and roadside drains, and priority drainage work. Land acquisition for drainage construction will solely be in the right-of-way and road and drainage improvement will be within the existing alignments.

3 Nong Kiew Tai, Sop Houn, Pak Bak, Nong Bia, Nong Kiew Neua, Viengkham, Lakhon

4 Ban Houay Leck, Ban Nong Ian

2. Scope

11. Village-level impacts are in Attachment 1. One of the criteria for Project eligibility is that LAR shall be insignificant for each subproject town. The scope of LAR in Ngoi subproject town is “insignificant” as the number of households experiencing major impacts5 is only 8 (37 APs) due the WTP, intake and reservoir. The WTP site is at private land used for teak tree plantation. The private land for the reservoir is used as agricultural land for corn, kha (a root like ginger) and a natural growing plant used to make oil. The private land for the intake is used for fruit trees. The sludge lagoon of 2,900 m2 will be next to the WTP site is at government land covered by scrub bush.

12. Land acquisition and resettlement will affect a total of 64 households (215 APs) including many households with only minor inconvenience in removing fences temporarily. (See also Table 1) One household will require relocation to make room for the road to the reservoir. 15 households (70 APs) included in the above will experience a temporary loss of land that will be used during pipe-laying activities. This land will be restored and returned to the AP and therefore will not be compensated. Impacts from water supply works are very minor for each of the families and mostly involve broken cement slabs in front of the houses to allow for the pipe laying. Such minor losses, including temporary, will be compensated (if more than the 1 million kip deducted for the free water connection). (See also Table 2)

13. The roads fall under the category of urban roads6 for which ROW is 12 meter. The width of the roads will be so designed as to avoid loss of land. Road improvements will be kept to a minimum mainly linked to drainage works. The land to acquired for the road improvement is land in the ROW zone that is being used under the agreement with the local authorities that structures will be removed when this area will have to be used for the purpose that it is planned for, namely public facilities. Therefore, there will be no compensation for the land but only for the loss of structures.

14. Drainage work will acquire some land, around 1 meter width between houses and the road. This is mostly land in the ROW but many houses have extended their verandas and selling stalls in this area with temporary permission of the local authorities. There are 28 households (107 APs) affected by drainage works. As their land in the ROW is not titled, they will not be compensated for land but only for structural and income losses.

5 Major impact is defined as those households that will be (i) physically displaced from housing, and/or; (ii) lose more than 10% of their income-generating source; and/or (iii) lose more than 40% of their residential structure. 6 According to the Road Law of 1999

15. Because road improvement and drainage works will be done in the most densely populated area of town 25 businesses might be affected. However, only 4 of them think it is not possible to open their business during the construction whereas all the other businesses think they can stay open without loosing income. The duration of the drainage and road works will have to be shortened as much as possible in order to minimize losses in income.

16. The water pipe laying and drainage will affect 58 trees of 10 households. The WTP, intake and reservoir have 211 trees from 9 households. However, the PIU will make user agreements with the households who have trees in the required area of the WTP where there will not yet be any construction so that they can still harvest these trees at a later stage. See Attachment 6. In this way only 5 households will be immediately experience a loss of 61 trees.

See IOL in Attachment 3.

Table 1: Affected Households and Persons in Ngoi Impact Affected Total Households and Major Impacts Households APs Business Perm Temp HH HHs HHs HHs APs EMHH % FHH % HHs APs EMHH FHH Water

Supply 0 15 15 70 1 1% 2 3% 0 - 0 0 2 Drain 28 0 28 107 2 2% 4 4% 0 - 0 0 2 WTP 18 3 21 38 2 5% 0 0% 8 37 0 0 0 Total 46 18 64 215 5 2% 6 3% 8 37 0 0 4 AP=affected person; EMHH=ethnic minority households; FHH=female-headed households; HH=household. Source: Detailed Measurement Survey for Ngoi District Town, 2009. *1 structures outside land title markers

Table 2: Loss of Land, Structures and Trees in Ngoi Impact Land Loss (sqm) Households Loss at Structural Trees Houses Loss (sqm) Residential Agriculture Govn/Com Houses (no) Households No

Perm Temp Perm Temp Perm Temp Perm Temp Perm Temp Water Supply 0 72 0 0 0 4 0 0 0 15 57 Drain 128 - 0 0 0 0 0 0 128 0 1 WTP - 0 16,672 1,455 147 0 1 0 0 0 211 Total 128 72 16,672 1,455 147 4 1 - 128 15 269 AP=affected person; EM=ethnic minority; HH=household; perm=permanent; sqm=square meters; temp=temporary Source: Detailed Measurement Survey for Ngoi District Town, 2009.

3. Vulnerable groups

17. There are 6 female-headed households (3 %) amongst the affected households.

18. The majority of the affected households is Lao under the Tai Kadai main language group (also called Lao Loum). There are 2 (3%) Khmu families among the interviewed households. They are under the Mon-Khmer language group and are patrilinial. There are 3 Hmong households (5%) (also called Lao Sung). None of the affected households are determined to be very poor.

19. There will be 8 households (37 APs) experiencing major impacts or major loss because of land acquisition for the WTP (6 households), the intake (1 household) and the reservoir (1 household). 1 Of these households has to be relocated. As they are severely affected they will have to be compensated accordingly. None of these households are vulnerable households7.

III. LEGAL FRAMEWORK AND PROJECT PRINCIPLES

A. Legal Framework

1. Laws and Regulations

21. The Land Law provides the issuance of a Land Title, which attests provisional ownership rights to use agricultural as well as forestland (Articles 17-18 and 21-22). Land titling is being undertaken under the AusAid/World Bank project in a number of towns. Under this project Land Titles and Land Survey Certificates are issued. It has been completed in Ngoi subproject town for most villages. For some villages8 where Land Titling has not been done yet APs will only have Land Use Rights Certificates (Form 01), Land Tax Payment Receipts and/or Residency Certificates. Form 01 are certificates of land use for taxation and are considered evidence of land use but not as legal title. The latter is also the case for most of the agricultural land around Ngoi.

7 Vulnerable: female headed, ethnic minority, poor 8 Viengkham, Lakhon

B. Project Provisions and Principles

1. Eligibility

24. Identification of APs was carried out as part of the socio-economic survey and social assessment during the subproject preparation. Inventory of APs continued after finalization of design and was completed at DMS. Lack of legal rights will not affect the eligibility to compensation for land use, structure, and income losses.

25. The cut-off date for Ngoi that sets the eligibility for entitlement is the end of January 2009.

2. Categories of APs

26. Based on the initial design of the piped water systems and urban improvements, the following categories of persons are expected to be affected: - those with permanent land use rights: this includes those who have the legal and legalizable land use rights, as in agricultural land, and have legal title of the land or a certificate to ensure the right of land use. They are entitled to full compensation. - those with temporary land use rights: this includes those who have the right to use land temporarily with a written/verbal permit issued by the village or commune authorities and who do not meet the legalization criteria as users with permanent rights. They will not be entitled to compensation for the affected land but will receive an allowance to offset anticipated loss of income; most land in the declared ROW falls under this category since the occupants agreed to use this land only until civil works would begin; - occupiers whose trees and standing crops are affected: they will be compensated at full market prices regardless of the legal status of land use rights. - people losing part of their residential or commercial land - people losing part of their house or other physical structures they constructed - people temporarily loosing income during implementation of the civil works.

3. Type and level of loss

27. The following categories and types and levels of Project-induced impacts in the realm of resettlement are foreseen: (i) loss of land use; (ii) partial loss of residential or

commercial structures; (ii) temporary and permanent loss of income ; (iii) loss of standing crops and trees; and (iv) loss of government waste land.

28. Loss of land use: residential and commercial land will be acquired for the drainage works. The water treatment plant will acquire agricultural land from 19 individual households and the intake and reservoir from another 2 households. Water pipes will be laid within the existing ROW to avoid any unnecessary LAR impacts wherever possible. Temporary loss of land is land that will be used during construction or pipe-laying activities, and will be restored and returned to the AP. There is little distinction between residential land and ‘garden’ land so that residential land can include trees and flowers.

29. Loss of residential or commercial structures: Residential or commercial structural losses will be minimized as much as possible. But some partial or full loss of houses is expected due to drainage works. 1 Household has to remove the house to give way to the access road to the reservoir.

30. Structural loss will be permanent or temporary. Due to drainage works 13 households will have permanent structural loss. Most of the structures that will be affected are cement slabs in front of shops or homes. The Project has minimized these impacts during detailed design. Temporary structural impacts due to water pipe laying will affect 11 households with minor losses of cement slabs mostly. During construction, access to shops and homes will not be restricted, as temporary planks will be provided to owners. The Project will also provide cement covers over road-side drains to ensure continued access after construction from the road to the property.

31. Loss of business and income opportunities: This includes shop owners, employees, mobile stalls and other non-agricultural income generation activities. The 8 households who are severely affected by the WTP, intake and reservoir will loose more than 10% of their total productive assets. 25 Business will be affected by drainage works and water pipe laying but only 4 of these businesses expect serious loss of income.

32. Loss of standing crops will occur due to the construction of the reservoir. The reservoir will acquire land that is now used for ‘kha’ (a ginger like crop), corn and an oil giving plant. Loss of some trees will occur during laying of the pipe system and a lot of teak trees will be lost to the WTP. However, an agreement will be made with the owners of the trees that gives them the right to cut the trees at a later stage if they are not in the way of initial construction. See Attachment 6.

33. Loss of governmental assets (land) will occur at the sludge pond. Community land is temporarily lost at the temple stairs in Nambak due to water pipe laying.

4. Entitlements

35. The rates for compensation and cash entitlements for rehabilitation and allowance payable to APs have been adjusted over the last 3 years, based on actual inflation9.

IV. PARTICIPATION AND CONSULTATION

36. This RP was prepared by the executing agency (EA), with the assistance of the P. B consultants and in consultation with respective provincial and district authorities. During IPSA interviews with selected households from the total of 83 interviewed households in the socio-economic survey were held. A summary of consultations with all stakeholders is given in Attachment 4. The EA for the Project is the Ministry of Public Works and Transport (MPWT). The Project Coordination Unit (PCU) that has been established under MPWT will coordinate LAR activities during the implementation of the subprojects. During the planning stage of the subproject, the following steps were taken.

A. Preparation of Subproject Resettlement Plan

37. Step 1. A team of social surveyors was engaged for conducting socioeconomic surveys and resettlement census. In December 2007, the social team conducted surveys in Ngoi District.

38. Step 2. From end 2008, initial consultations were made with various stakeholders at the provincial, district and village levels in Ngoi and Nam Bak, including villagers and members of mass organizations. These consultations were held during initial town visit to Luang Prabang province and Ngoi and Nam Bak districts. Individuals that visited Ngoi and Nam Bak included MPWT/DHUP, PCU and the P. B consultants team. A list of priorities was noted for Ngoi and Nam Bak subproject town.

39. Step 3. The RF and Lao Decree and Regulations on Resettlement were presented and explained in a meeting with the District Governor in December 2008. Also a meeting on resettlement procedures was held with the PIU Chief and Staff. These staff distributed the PIB to the potential APs and village heads. APs were informed of their rights to lodge grievances about the LAR-related issues. The responsibility to set up a DRC and grievance redressal procedures were discussed and agreed upon. Also guidelines were given to minimize and avoid any unnecessary LAR during a transect walk.

40. Step 4. In January 2009, the subproject scope was shared by the P. B engineers with Ngoi and Nam Bak district people. During these discussions provincial officials from Luang Prabang Province also attended. Priorities for the subproject were reconfirmed and core villages agreed upon.

41. Step 5. A social assessment team visited Ngoi and Nam Bak in February 2009. Interviews with villagers and APs were conducted to determine their views about the subproject in Ngoi and Nam Bak during the IPSA.

9 2005: 7.16, 2006: 6.81, 2007: 4.51, 2008: 7.63 (2008), 2009: only 1.12 till June ‘09 (Bank of Lao PDR website)

B. Implementation of the Subproject RP

43. Participation and consultation with stakeholders in Ngoi and Nam Bak districts and in Luang Prabang province continued during subproject implementation. Grievance redressal procedures has been disclosed again to APs before the commencement of LAR activities.

44. Step 7. After initial engineering designs have been completed a workshop in Ngoi and Nam Bak was conducted in February 2009 about all resettlement and DMS procedures and PIUs were explained in detail all the resettlement steps to be taken from initial social assessment to Construction. (See Attachment 2 in the Appendix to the RP on non variable information under separate cover). This workshop included a transect walk through the planned water supply and drainage system and interviews with village heads and vulnerable APs. Based on that, PCU prepared the compensation plan and initial RP.

45. Step 8. The P. B consultant for Resettlement visited Ngoi again in May 2009 to share the initial RP and train the PIU and DRC about DMS. Then, PIU together with representatives of the mass organizations conducted the DMS after detailed designs were completed. Individual losses were calculated and recorded according to the local compensation rates and allowances. During August/September 2009, the PIU and Resettlement Committee checked and confirmed the calculation sent back by PCU. Then the final RPs were prepared by PCU.

46. Step 9. The final RP was sent to the subprojects and ADB and compensation declarations for individual APs will be prepared and delivered to the APs per household by the PIU. (See Attachment 3 of the Appendix on Non Variable Information for the form Declaration for Affected Persons) APs then have 14 days the time to review the RP and sign and return the declarations or to make objections to the village head and GRC (see section C this section).

47. Step 10. Following approval by the ADB, the MPWT has the authority to coordinate the start of resettlement activities, either payment of compensations or restoration works. After receipt of the signed compensation declarations by PIU, PIU can oversee payment. (See Attachment 4 of the Appendix on Non Variable Information for the form Receipt of Compensation Payment for Affected Persons) In case of objection, the problem first has to be solved before starting payment. Also written agreements for voluntary contribution (conform Attachment 1 of the Appendix to the RP on Non Variable Information) will be prepared to confirm that all APs who contributed voluntarily were aware of their rights for compensation.

C. Grievance and Redressal

48. Grievances can be directed to the DRC for consultation. 49. The consulted stakeholders were able to inquire about any component during organized stakeholder consultation meetings and informally. The PIU distributed the PIB in which the grievance and conflict resolution procedure is explained to village heads and APs. During data collection for the IOL the APs were informed of their right to lodge grievances and when the short RP would be ready for public viewing at the PIU’s office. 50. APs were informed during consultation and DMS and will be reminded at the time of compensation of their rights to grievance and the procedures for making a complaint. These APs will be exempted from all taxes, administrative, and legal fees. Complaints can be filed first at the village level and can be elevated firstly to the district level and secondly to the provincial level if APs are not satisfied. The APs may present their complaints to the concerned local administrative officials and resettlement committees. All grievances regarding any aspect of relocation or compensation shall be acted on within 30 days. Attempts should be made to settle the issues at the village level through community consultation, involvement of the social/resettlement specialist as required, the Lao Women’s Union, and any other concerned local-based organizations. All complaints and resolutions will be properly documented by the concerned resettlement committee and will be made available for review during post-evaluation and monitoring.

V. IMPLEMENTATION ARRANGEMENTS

A. Roles and Responsibilities

51. The roles and responsibilities of EA, PCU, PIU and consultants can be found in the Appendix on Non Variable Information. See Attachment 2 of the Appendix on Non Variable Information for Resettlement for: ‘Steps Scheduling from DMS to Construction’ and ‘Activities for the preparation of the short RP by PCU’. 52. A District Resettlement Committee (DRC) was officially established at 22 Dec 2008 in the Ngoi district and at 26 Dec 2008 in Nambak district. Members of the DRC are for Ngoi district: Head of personnel office (chief of DRC), Dep. PIU Chief, Staff OPWT Ngoi, Planning, Party Control (1 man; 1 woman), Staff District Land and Finance Section, Staff Land Section Ngoi, Staff District Education, Staff District Health, (representative of APs, District LWU (♀), District Agriculture staff (2 ♀), village heads, And for Nambak district: Deputy of Forestry (chair), Deputy of Health, Staff District Personnel Nambak (♀) Staff Land Section Nam Bak, Staff OPWT Nam Bak, village heads.

53. The DRC will work with the PIU in conducting consultation among APs, preparing final IOL and valuation of assets, identifying and allocating replacement land for those severely affected, ensuring smooth cooperation with local mass organizations, and resolving grievances. District officials were trained in resettlement procedures and DMS as part of the Project’s implementation assistance and capacity building component. 54. ADB shall approve the civil works contract for the subproject to be financed from the loan proceeds after the Government has satisfactorily completed all land acquisition,

and resettlement activities, including the establishment of rehabilitations measures. The timely availability of counterpart funds is necessary in order for this arrangement to work. B. Project Budget

55. The estimated cost of LAR for the Ngoi subproject is estimated as 139,967,556 kip (16,467 US$) which includes the base LAR costs and a 20% reserve fund. These costs are based on the estimations of unit costs by the DPWT in district towns and the final IOL (in June 2009) and APs perceptions during DMS. The unit cost form and detailed IOL can be found in respectively Attachments 2 and 3. The calculation of LAR cost estimates for Ngoi are in Table 3. 56. An initial IOL and unit cost form have being prepared by the PIU (see Attachment 2 and 3) and the detailed IOL will be prepared at DMS. Based on the IOL the actual LAR costs will be calculated. The Government will be responsible for providing timely counterpart funds for all LAR activities.

Table 3: LAR Costs

NGOI WTP and WS WTP, WS and Drainage Item Total US Total US Dollars Amount (kip) Dollars 1 Amount 1 US$ = US$ = kip: (kip) kip: 8500 8500

1 Land Residential Land (permanent); not - calculated because only user right 8,960,000 1,054 Residential Land (temporary): not calculated 3,926,000 462 3,926,000 462 Agricultural Land (permanent) 18,126,500 2,133 18,126,500 2,133 2 Houses - -

2,704,000 318 2,704,000 318 3 Business - - - Temporarily affected during civil works 58,500 7 1,808,500 213 4 Structures - -

1,290,000 152 15,343,350 1,805 5 Trees - -

9,600,000 1,129 9,685,000 1,139 6 Crops - -

NGOI WTP and WS WTP, WS and Drainage Item Total US Total US Dollars Amount (kip) Dollars 1 Amount 1 US$ = US$ = kip: (kip) kip: 8500 8500

63,229,278 7,439 63,229,278 7,439 7 Other Assets - - - - Subtotal base Resettlement costs 95,008,278 11,177 110,896,628 13,047 Rehabilitation Allowances - - Living Allowance 3 mnths - - Living Allowance 6 mnth 16,200,000 1,906 16,200,000 1,906 Repair Allowance 1,095,000 129 1,220,000 144 Special Assistance - - - Transport Allowance 975,000 115 975,000 115 Subtotal Allowances 18,270,000 2,149 18,395,000 2,164 Sub Total LAR Costs 113,278,278 13,327 129,291,628 15,211 LAR Costs minus 1 million kip and > 50,000 kip 109,821,278 12,920 116,639,630 13,722 Reserve Fund 20% 21,964,256 2,584 23,327,926 2,744 Total LAR Costs 131,785,533 15,504 139,967,556 16,467 The costs and allowances are based on cost estimates for replacement costs at market value in June 2009 *1 road construction for 5 months and laying water pipe for 3 days *2 based on 20 kg/person/month; around 3.000 kip/kg rice

C. Implementation Schedule

57. Details on roles and responsibilities of all parties and on compensation payment procedures can be found in the Appendix to the RP on Non Variable Information, under separate cover.

58. All resettlement activities will be coordinated with the civil works schedule for the Ngoi subproject. ADB will approve the civil works contract for the subproject to be financed from the loan proceeds after the Government has satisfactorily completed, in accordance with the approved RP for the subproject, compensation payments and

resettlement measures. Establishment of rehabilitation assistance shall be in place and the area required for civil works should be free of all encumbrances before the commencement of civil works.

D. AP Database

60. A database for IOL has been started during subproject preparation and will be maintained during implementation. A single file for each subproject town will be created, with individual worksheets for each subcomponent causing LAR impacts. The IOL will be updated after the detailed design survey is completed. New APs found during implementation will be added to the database. This database will be given to the subproject sites. APs from the first survey who will no longer be APs due to changes in the design will be given notice. A form for their signature for notification was distributed (see Attachment 5) to the PIUs for their use.

Attachment 1: Village-level Impacts:

No Ngoi District Ethnicity Component Village Impact All of this Village Name villages 1 Viengkham Lao Water supply- pipes No households will be affected expected to Khmu have water 2 Lakhon/Nakhon Lao Water supply- pipes 8 Households will be temporarily supply affected during laying of the pipe lines. 3 Nong Kiew (Tai Lao Water supply- pipe 8 Households will be temporarily and Neua) Khmu and drainage affected during laying of the pipe Hmong improvements lines. Drain construction will Chinese affect 28 households. Vietnamese 4 Sop Houn Lao WTP and intake 8 Households are severely Khmu Reservoir affected by the WTP. 13 Other Hhmong Sludge pond households will loose land but Water supply- pipes. less than 10% of their productive assets. 5 Pak Bak Lao Water supply- pipes No households will be affected Khmu 6 Nong Bia Lao Water supply- pipes No households will be affected Khmu Tai Dam

Attachment 2: District Unit Cost Estimates

Form Unit Costs provided by PIU

Attachment 3: Inventory of Losses

IOL provided by PIU

Attachment 4: Record of Consultations with APs

Number of Date Agency/Person Type of Participants Discussion/Responses/Outcomes Participants male female 2006 ADB, MCTPC 3 1 Staff  voluntary donation mechanism  voluntary donation according to the agreed criteria Dec ‘07 Ngoi district town 21 6 Village Heads and Mass  Introduced the purpose and and villages Organizations, methodology of socioeconomic Social survey team stakeholders, potential APs survey (SES) and resettlement census in villages  SES of 83 heads of households (7 core villages) Nov ‘08 Ngoi district town 5 0 PIU staff, Prov. Water  Discussions on lay-out and civil and villages Supply , District Water works PIU, TA engineers Supply, District Governor  Identification for WTP location Jan ‘09 Ngoi district town, 7 1 District Governor Ngoi, PIU  Lao Decree and Regulations P. B Consultant Chief, PIU staff  RF Resettlement  Need for DRC  Need for cut-off data  Need for Grievance and Redressal Responsible Persons  Steps for PIU  Form for IOL AP Jan ‘09 Ngoi district town 7 0 PIU staff, Prov. Water  Agreement on Project Procedures TA engineers, Supply , District Water  Discussion on pricing MPWT Supply, District Governor  Agreement on core villages Feb ‘09 Ngoi district town, 14 5 Dep. PIU Chief, District  Explanation of initial RPs and IOL P. B TA (DRC), District OPWT Ngoi  preparation and training for DMS Resettlement (DRC), Party Control (1  Further explanation of resettlement man; 1 woman (DRC)), procedures Staff District Land and Finance Section (DRC), District Land Ngoi (DRC), District Land Nam Bak (DRC), District OPWT Nam Bak (DRC), District Education (2 in DRC), Staff District Health (DRC), Staff District Personnel Nambak (♀) (DRC), District LWU (♀) (DRC), District Agriculture staff (2 ♀), Village authorities of Ban Nakhone, Ban Sophoun (in DRC), Ban Pakbak, Ban Viengkham, Ban Nongkieo (in DRC), Representatives of APs from Ban Sophoun Feb ‘09 Ngoi district town, 3 staff 12 PIU Staff, Staff District  Assess social impact of project TA Social 6 village household Water Supply, Village especially on vulnerable groups Assessment heads members heads, villagers  Perceptions of APs 12 household members 20-22 May Ngoi district town, 11 1 Deputy of District Governor,  Support PIU to do DMS ‘09 TA Resettlement PIU chief, PIU deputy,  Get final IOL data for final District Public work PIU calculation of compensation for full member, LWU and chief RP (for ADB) villages  Start Payment Procedure June ‘09 Ngoi PIU and 51 hh All APs and chief villages  DMS Resettlement Committee

Number of Date Agency/Person Type of Participants Discussion/Responses/Outcomes Participants Aug-Sept Ngoi PIU and 51 hh APs and chief villages  Confirmation of IOL data ‘09 Resettlement Committee . Date = date the consultation took place . Agency/person = agency/person conducting the consultations . Participants = Ministries, NGOs, affected people, local communities, etc. that participated in the session . Discussion/Responses/Outcomes = summarize what was discussed, participants reactions, and key outcomes

Date:

Signature: The Chief of PIU …………………….

Attachment 5: Form for Consultation with no longer APs

LAO PEOPLE’S DEMOCRATIC REPUBLIC

Province:

District:

Persons who were APs in the previous design should be told if they are no longer affected after revision of the design. They can sign after the visit by the responsible persons.

No. Name Village Date Visited Signature Signature Visit by whom of former of former AP AP’wife

Certified by the Chief of the Village: …………

The Chief of PIU …………………….

Attachment 6: User Agreement Forms for Use of Land/Trees

The District Water Authorities have to select which form (a or b) they want to use.

WTP Ngoi: Form a Agreement on Use of Land

For land owners/users having trees/structures/crops outside WTP Construction Area but within the whole WTP area

This is an agreement between

District Water Authorities of District Ngoi, Province Luang Prabang and Name: Age: with residence located in ……… village,

It is agreed that household (NAME) confirms that it will transfer land of ………. square meters located at the WTP area to the local authority for the agreed price.

It is also agreed that mentioned household (NAME) can continue to use the above land and trees located at the WTP area until the District Water Authorities need it with the following conditions:

(i) District Water Authorities will give notice to the owner/user of the need to use the land 2 months in advance (ii) Owner/user will be allowed to cut the trees on the land or be given compensation for the trees/crops on the land based on the market value for those trees/crops (iii) Owner/user does not have to pay rent for using the land

Assets currently at the land for use by the owner/user: Type of Area Unit Rates Total Comment Loss (sqm)/Unit Structures Crops Trees Other I sign that I agree with this agreement

Signature: …………………………… …………………………………. The owner/user of the land/structure/crops/trees Wife/Husband of the owner/user ……………………………….

District Water Authorities

Certified by:

The Chief of the Village: ……… The Chief of DRC: ……..

Date: Ngoi District

This agreement falls under the Law of the Lao People’s Democratic Republic

WTP Ngoi: Form b Agreement on Claim Rights on Trees/Crops

For land owners/users having trees/structures/crops outside WTP Construction Area but within the whole WTP area

This is an agreement between

District Water Authorities of District Ngoi, Province Luang Prabang and Name:

Age: with residence located in ……… village,

It is agreed that household (NAME) confirms that it will transfer land of ………. square meters located at the WTP area to the local authority for the agreed price.

It is also agreed that mentioned household (NAME) can continue to claim the rights to the trees and crops on the above mentioned land located at the WTP area until the District Water Authorities needs the land with the following conditions:

(iv) District Water Authorities will give notice to the owner/user of the need to use the land 2 months in advance (v) Owner/user will be allowed to cut the trees or harvest the crops on the land or be given compensation for the trees/crops on the land based on the market value for those trees/crops (vi) Owner/user does not have to pay anything to the District Water Authorities for the right to cut and sell the trees/crops

Assets currently at the land for use by the owner/user: Type of Area Unit Rates Total Comment Loss (sqm)/Unit Structures Crops Trees Other I sign that I agree with this agreement

District Water Authorities

Certified by:

The Chief of the Village: ……… The Chief of DRC: ……..

Date: Ngoi District

This agreement falls under the Law of the Lao People’s Democratic Republic

21 NORTHERN AND CENTRAL REGIONS WATER SUPPLY AND SANITATION SECTOR PROJECT

NAMKEUNG DISTRICT TOWN, BOKEO PROVINCE SHORT RESETTLEMENT PLAN UPDATE

Department of Housing and Urban Planning (DHUP) Ministry of Public Works and Transport (MPWT)

October 2009

TABLE OF CONTENTS

ABBREVIATIONS ii PROJECT MAP iv SUBPROJECT MAP OF NAMKEUNG DISTRICT TOWN, BOKEO PROVINCE v

I. INTRODUCTION 1

II. THE SUBPROJECT AND SCOPE OF LAR 1 A. The Subproject Description 1 B. The Scope of Land Acquisition and Resettlement 2 1. General 2 2. Scope 3 3. Vulnerable groups 4

III. LEGAL FRAMEWORK AND PROJECT PRINCIPLES 5 A. Legal Framework 5 1. Laws and Regulations 5 B. Project Provisions and Principles 5 1. Eligibility 5 2. Categories of APs 6 3. Type and level of loss 6 4. Entitlements 7

IV. PARTICIPATION AND CONSULTATION 7 A. Preparation of Subproject Resettlement Plan 7 B. Implementation of the Subproject RP 8 C. Grievance and Redressal 9

V. IMPLEMENTATION ARRANGEMENTS 9 A. Roles and Responsibilities 9 B. Project Budget 10 C. Implementation Schedule 12 D. AP Database 12

Attachments Attachment 1: Village-level Impacts 13 Attachment 2: District Unit Cost Estimates 14 Attachment 3: Inventory of Losses 15 Attachment 4: Record of Consultations with APs 16 Attachment 5: Form for Consultation with no longer APs 17

Tables Table 1: Affected Households and Persons in Namkeung 4 Table 2: Loss of Land, Structures and Trees in Namkeung 4 Table 3: LAR Costs 10

ABBREVIATIONS

PROJECT MAP

PEOPLE'S NORTHERN & CENTRAL REGIONS REPUBLIC OF WATER SUPPLY & URBAN DEVELOPMENT CHINA PROJECT

Phonhong Gulf of Tonkin VIENTIANE BORIKHAM XAY 10.Keo Oudon

4.Xanakham VIENTIANE Mekong River

3.Kenethao Thakhet THAILAND

LEGEND:

Capital City Savannakhet Secondary Town

Provincial Capital

Candidate Project Town International Boundary N Provincial Boundary

Project Province 0 50 100 M ekong River Pakse Kilometers National Road

Other Road

Notes: 1. Boundaries are not necessarily authoritative. 2. Numbers adjacent to town names indicate development priorities.

iii

SUBPROJECT MAP OF NAMKEUNG DISTRICT TOWN, BOKEO PROVINCE

2000 4000 6000 8000 10000 12000 14000 16000

2268000 2268000 2268000

600 520 B.Laolouang

440 380 380 600 640 LEGENDS 540 760 760 760 540 480 540 800 840 B.MAI CORE VILLAGES 460 480 380 440 Nam Gnao 480

800 460 ROAD

2266000 2266000 2266000 B.Phonxai 460 440 Nam Gnon 700 440 STREAM / RIVER 400 400 400 380 440 420 440 CONTOUR LINE 500 380 540 420 440 460 360 460 HOUSES 460 380 560 400 420 400 B.Thaikhan 380 480 600 740 800 380 800 380 440 420 380 400 400

440 B.Phakham380 - Villages Information in the Service Area: 400 740 B.Phonsavat Proposed 400 380 360 380 440 On GROUND RESERVOIR ( Status in 2007 ). Nam K 440 420 380 e 360 u 380 400 380 500 n 400 380 440 ID Village Name No. of Total Notes

g 440

2264000 2264000 2264000 500 Proposed B.Namkeung-Kao 460 400 Proposed480 B.Namgnon-Mai HHS. Pop. 400 380 INTAKE 380 380 WTP 380 480 360 740 1 B.NAMGNON-MAI 181 997 B.Namgnon-Kao500 360 400 380 B.Xiangchai 360 500 400 400 2 B.NAMGNON-KAO 122 541 380 400 420 380 380 500 B.Doydeang 460 3 B.NAMKEUNG-KAO 390 1855

420 420

400 380 380 B.Namkeung-Mai 400 4 B.NAMKEUNG-MAI 204 1010

380

500

440

2262000 2262000 2262000 5 B.DOYDEANG 81 386

B.SIDOYNGENG or 6 88 436 B.Singkham B.HOUAYPHOUNE 380 360

380 KEY MAP

N 380 22?N A B.Sithat 360 HOUAYXAI DISTRICT

M B.Namngiou

2260000 2260000 2260000

380

B.Sidoyngeng K 20?N

(B.Houayphoune) H O N G

O N H 18?N

K G B.Houakhoua M A

N 16?N

2258000 2258000 2258000

102?E

100?E

108?E 14?N

104?E 106?E

2000 4000 6000 8000 10000 12000 14000 16000 MCTPC LAOPDR Department of Housing and Base Map - Namkeung Urban Area ( Bokeo ) Urban Planning WAC Programme Approved by: Graham Jackson Dwg. No.: HX-PD-01 Northern and Central Regions Water Supply and Checked by: Graham Jackson Date: 08/April/07 Sanitation Sector Project (NCRWSSP) Designed by: Khanthachack .S Revised Date: 00/00/00 ADB-Grant No. 0016-LAO Digitized by: Khanthachack .S Scale: 1:100.000

I. INTRODUCTION

1. This short Resettlement Plan (RP) for Namkeung District Town in Bokeo Province is prepared based on an initial assessment of the land acquisition and resettlement (LAR) impacts during subproject preparation for the Northern and Central Regions Water Supply and Sanitation Sector Project from November 2008 to February 2009 and updates based on the DMS. The LAR impacts in Namkeung District Town are insignificant1, or ADB category B. The purpose of this RP is to ensure that all affected people (APs) will be compensated at replacement cost at current market value for their losses, and provided with rehabilitation measures so they are at least as well off as they would have been in the absence of the Project. The RP (i) identifies the legal and policy frameworks of the Lao Government and appropriate ADB guidelines; (ii) sets out procedures and policies on LAR to guide mitigation of impacts during project implementation; (iii) identifies an initial IOL and (iv) includes an estimated budget for implementing this RP.

II. THE SUBPROJECT AND SCOPE OF LAR

A. The Subproject Description

4. The subproject in Namkeung Subproject Town is one of 12 candidate subproject towns selected in the sector Project. Namkeung Subproject Town consists of 9 villages with a total population of 5,571 in 2007, of which 2,765 are female. The remaining 11 subproject towns include: in the first phase: (i) Nan, Luang Prabang Province, (ii)

Kenethao, Sayaboury Province and, (iii) Houn, Oudomxay Province, in the second phase: (iv) Keo Oudom and (v) Xanakham both in Vientiane Province (vi) Xamtay, Huaphanh Province; (vii) Khoun, Xiangkhoang Province; (viii) Sing, Louang Namtha Province, in the third phase: (ix) Ngoi, Luang Prabang Province; (x) Namor, Oudomxay Province; (xi) Namtha, Louang Namtha Province.

5. The Water Supply Development for Namkeung aims to provide safe, affordable, reliable piped water supply with individual household connections to communities within 6 core villages3 (one village including 3 of the total number of villages). One village, Ban Sithat, will not be connected but have an allowance for WTP and pipe capacity. The water supply scheme is planned to supply 120 Lpcd by 2027 to 90% of the population of the core villages’ in Y2027. The subproject will include: (i) piped water supply system, (ii) public sanitation facilities, and (iii) some improvements of roads in Ban Namkeung Mai.

6. This component will include the construction of: (i) a tower intake and raw water pumping station on the bank of the Mekong river, about 4 km of the town center (ii) a raw water transmission main; (iii) a 1,600 m3/day water treatment plant (WTP) on a hill on the other side of the road from the intake with presedimentation, flocculation, sedimentation, rapid gravity filtration and chlorination facilities, plant office, and small water testing laboratory; (iv) transmission main which will deliver treated water to the town; and (v) individual metered service connections.

7. The Urban Environmental Improvement Component will realign and resection 324m of road with open-lined roadside drain. Upgrading of culverts and the outlet will from part of this work. Other sanitation facilities will be proposed later in extended consultation with inhabitants of the core villages.

B. The Scope of Land Acquisition and Resettlement

1. General

8. The Project will entail temporary impacts during construction when the water supply pipe network is laid out.

9. Permanent impacts will take place due to placement of intake tower, water treatment plant and some improvements of roads in Ban Namkeung Mai. Land acquisition for the road improvement will be within the right-of-way and will be within the existing alignments.

3 NamGnon-mai, NamGnon-kao, Namkeung-kao, Namkeung-mai (includes B.Pakham, B. Xiangchai, B.Singkham), Doydaeng, SydonGneng/HouayPoun

2. Scope

11. Village-level impacts are in Attachment 1. One of the criteria for Project eligibility is that LAR shall be insignificant for each subproject town. The scope of LAR in Namkeung subproject town is “insignificant” as the number of households experiencing major impacts4 is only 1 household (4 APs) due the intake construction. Sludge will be disposed of in the Mekong river without environmental adverse impacts.

12. Land acquisition and resettlement will affect 79 households (361 APs) including many households with only minor inconvenience in removing fences temporarily. (See also Table 1) No households are expected to require relocation. 54 households (248 APs) included in the above will experience a temporary loss of land that will be used during pipe-laying activities. This land will be restored and returned to the AP and therefore will not be compensated. Impacts from water supply works are very minor for each of the families and mostly involve broken cement slabs in front of the houses to allow for the pipe laying. Such minor losses, including temporary, will be compensated. (See also Table 2)

13. The WTP site is at private waste land. 1 Household is affected and will have to be compensated for the land.

14. The sludge lagoon of 2,900 m2 will be near the WTP site at government land covered by scrub bush.

15. The roads fall under the category of urban roads5 for which ROW is 12 meter according to the urban planning department of the province. The width of the roads will be so designed as to avoid loss of land. The land to acquired for the road improvement is all land in the ROW zone that is being used under the agreement with the local authorities that structures will be removed when this area will have to be used for the purpose that it is planned for, namely public facilities.

16. 23 Households will be affected by road improvements besides land loss in the ROW which is not being compensated. Losses mostly will be permanently removed cement slabs and veranda roofs (from bamboo and wood) according to current material costs. Also 16 of these households will experience loss of income because of road construction.

17. Because road improvement works will be done in the most densely populated area of town, 45 businesses will be affected. The duration of the drainage and road works will have to be shortened as much as possible in order to minimize losses in income.

18. The water pipe laying and road construction will affect 32 fruit trees of 8 households.

See initial IOL in Attachment 3.

Table 1: Affected Households and Persons in Namkeung

Impact Affected Total Households and APs Major Impacts Households Business

Perm Temp HHs HHs HHs APs EMHH % FHH % HHs APs EMHH FHH HH Roads 23 0 23 105 0 - 2 9 0 0 0 0 16 WTP 2 0 2 8 1 50 0 - 1 4 1 0 0 Water Supply 0 54 54 248 6 11 2 4 0 0 0 0 29 Total 25 54 79 361 7 9 4 5 1 4 1 0 45 AP=affected person; EMHH=ethnic minority households; FHH=female-headed households; HH=household. Source: Detailed Measurement Survey for Namkeung District Town, 2009. *1 structures outside land title markers

Table 2: Loss of Land, Structures and Trees in Namkeung Impact Land Loss (sqm) Households Loss at Structural Trees Houses Loss (sqm) number Residential Agriculture Govn/Com. Houses (no) Households Perm Temp Perm Temp Perm Temp Perm Temp Perm Temp Roads 342 - 0 0 0 0 0 0 692 - 2 WTP - 0 6,900 0 0 0 0 0 0 0 0 Water Supply - 336 0 150 0 5 0 0 0 349 30 Total 342 336 6,900 150 0 5 0 0 692 349 32 AP=affected person; EM=ethnic minority; HH=household; perm=permanent; sqm=square meters; temp=temporary Source: Detailed Measurement Survey for Namkeung District Town, 2009.

3. Vulnerable groups

19. There are 4 female-headed households (5%) of all affected households in 5 core villages.

20. None of the households are determined to be very poor. 7 Households are from Khmu ethnic descent, a subgroup of the Mon-Khmer language group. All the other households are from the Tai Kadai language group (also called Lao Loum) although they are from different ethnic groups (Thai Neua, Kalom, Lue, Kheun).

21. One household is likely to experience major impacts because of major loss of land used for agriculture. They will have to be compensated accordingly. This is a vulnerable household6 and should therefore receive special assistance.

6 Vulnerable: female headed, ethnic minority, poor

III. LEGAL FRAMEWORK AND PROJECT PRINCIPLES

A. Legal Framework

1. Laws and Regulations

22. The policy framework and entitlements in this RP have been built upon the laws of the Government of Lao PDR, principally the Constitution (1991) and the Land Law (1997, 2003), the Road Law (1999), Decree 192/PM on Compensation and Resettlement (July 2005), the Regulations for Implementing Decree 192/PM and Technical Guidelines for Compensation and Resettlement of People Affected by Development Projects (November 2005), Asian Development Bank (ADB) Policy on Involuntary Resettlement (1995), and Government approved RPs for other ADB projects. Lao Laws and Regulations and ADB policy on Resettlement are also discussed in the Appendix to this short RP on non variable information under separate cover.

23. The Land Law provides the issuance of a Land Title, which attests provisional ownership rights to use agricultural as well as forestland (Articles 17-18 and 21-22). Land titling is being undertaken under the AusAid/World Bank project in a number of towns. Under this project Land Titles and Land Survey Certificates are issued. It has not been done in Namkeung subproject town. Therefore, APs only have Land Use Rights Certificates (Form 01), Land Tax Payment Receipts and/or Residency Certificates. Form 01 are certificates of land use for taxation and are considered evidence of land use but not as legal title.

24. The recent changes in the Government of Lao PDR legislation related to compensation and resettlement in development represents a significant improvement in the rights of citizens when their livelihoods, possessions and society are affected by development projects.

25. Both Lao Law and ADB policies entitle APs to compensation for affected land and non-land assets at replacement cost. However, definition of severely affected APs varies between ADB (OMF2 para 5) at 10% and Decree 192/PM (Article 8) at 20% of income generating assets affected. However in accordance with Decree 192/PM (Article 6) which entitles all APs to economic rehabilitation assistance to ensure they are not worse off due to the Project, the 10% definition of severely affected will be adopted as part of the Project’s resettlement policy.

B. Project Provisions and Principles

1. Eligibility

26. Identification of APs was carried out as part of the social assessment during the subproject preparation. Inventory of APs will continued after revisions in design and will be finalized at DMS. Lack of legal rights will not affect the eligibility to compensation for land use, structure, and income losses.

24. The cut-off date for Namkeung that sets the eligibility for entitlement is end of January 2009.

2. Categories of APs

26. Based on the initial design of the piped water systems and urban improvements, the following categories of persons are expected to be affected: - those with permanent land use rights: this includes those who have the legal and legalizable land use rights, as in agricultural land, and have legal title of the land or a certificate to ensure the right of land use. They are entitled to full compensation. - those with temporary land use rights: this includes those who have the right to use land temporarily with a written/verbal permit issued by the village or commune authorities and who do not meet the legalization criteria as users with permanent rights. They will not be entitled to compensation for the affected land but will receive an allowance to offset anticipated loss of income. - occupiers whose trees and standing crops are affected: they will be compensated at full market prices regardless of the legal status of land use rights. - people losing part of physical structures they constructed - people temporarily/permanently loosing income due to the civil works.

3. Type and level of loss

27. The following categories and types and levels of Project-induced impacts in the realm of resettlement are foreseen: (i) loss of land use; (ii) partial loss of residential or commercial structures; (ii) temporary and permanent loss of income; (iii) loss of standing crops and trees; (iv) loss of community assets, and (v) loss of government waste land.

28. Loss of land use: residential and commercial land will be acquired for road improvement (in case of sufficient funds). The water treatment plant will acquire land from four individual households. Water pipes will be laid within the existing ROW to avoid any unnecessary LAR impacts. Where the main pipes will cross agricultural fields they will be laid deeper than the usual 1.30 m. Temporary loss of land is land that will be used during construction or pipe-laying activities, and will be restored and returned to the AP. There is little distinction between residential land and ‘garden’ land so that residential land can include trees and flowers.

29. Losses, even partial, of residential or commercial structures are not foreseen due to the large width of the roads in town. Partial loss of structures or temporary affects may be expected during construction. Complete loss of structures will be avoided by reducing the width of the roads.

30. Structural losses will be permanent or temporary. Many of the structures that will be affected (i.e. fences) are made of temporary materials (i.e., bamboo and wood), which are easily moveable. And many structures are cement slabs in front of shops or homes that will be affected due to piped water supply and road improvement. The Project will minimize these impacts during detailed design. During construction, access to shops and homes will not be restricted, as temporary planks will be provided to owners. The Project will also provide cement covers over road-side drains to ensure continued access after construction from the road to the property.

31. Loss of business and income opportunities: This includes shop owners, employees, mobile stalls and other non-agricultural income generation activities. Most of the identified APs will loose their income only temporarily during water pipe laying and minor road improvements and only if there is substantial road improvement some households may loose income permanently or for more than 10% of total productive assets because of the need to relocate.

32. Loss of standing crops will occur during the construction of piped systems, and will be temporary. Loss of quite a number of trees will occur because of land acquisition for the WTP and during the main pipe laying and this will be permanent loss.

33. Loss of governmental and community assets (the cement place stairs of a temple) will occur.

4. Entitlements

36. The Project entitlements have been designed to provide compensation, resettlement and rehabilitation for lost assets and restore or enhance the livelihoods of all categories (directly and indirectly affected, title holders and non-title holders such as Form 01) of affected people. The entitlement matrix for the Project is in Table 2 of the Appendix for non variable information on resettlement. Entitlements are based on the categories of APs as previously defined.

37. The rates for compensation and cash entitlements for rehabilitation and allowance payable to APs have been adjusted over the last 3 years, based on actual inflation7.

IV. PARTICIPATION AND CONSULTATION

36. This RP was prepared by the executing agency (EA), with the assistance of the P. B consultants and in consultation with respective provincial and district authorities. During IPSA interviews with selected households from the total of 108 interviewed households in the socio-economic survey were held. A summary of consultations with all stakeholders is given in Attachment 4. The EA for the Project is the Ministry of Ministry of Public Works and Transport (MPWT). The Project Coordination Unit (PCU) that has been established under MPWT will coordinate LAR activities during the implementation of the subprojects. During the planning stage of the subproject, the following steps were taken.

A. Preparation of Subproject Resettlement Plan

37. Step 1. From end 2008, initial consultations were made with various stakeholders at the provincial, district and village levels in Namkeung, including villagers and members of mass organizations. These consultations were held during initial town visit to Bokeo province and Namkeung Subproject. Individuals that visited Namkeung included MPWT/DHUP, PCU and the P. B consultants team. A list of priorities was noted for Namkeung subproject town.

7 2005: 7.16, 2006: 6.81, 2007: 4.51, 2008: 7.63 (2008), 2009: only 1.12 till June ‘09 (Bank of Lao PDR website)

38. Step 2. A team of social surveyors was engaged for conducting socioeconomic surveys and resettlement census. In December 2008, the social team conducted surveys in Namkeung Subproject.

39. Step 3. The RF and Lao Decree and Regulations on Resettlement were presented and explained in a meeting with the District Authorities in January 2009. Also a meeting on resettlement procedures was held with the PIU Chief and Staff. These staff distributed the PIB to the potential APs and village heads. APs were informed of their rights to lodge grievances about the LAR-related issues. The responsibility to set up a DRC and grievance redressal procedures were discussed and agreed upon. Also guidelines were given to minimize and avoid any unnecessary LAR during a transect walk.

40. Step 4. In January 2009, the subproject scope was shared by the P. B engineers with Namkeung Subproject people. During these discussions provincial officials from Bokeo Province also attended. Priorities for the subproject were reconfirmed and core villages agreed upon.

41. Step 5. A social assessment team visited Namkeung in February 2009. Interviews with villagers and APs were conducted to determine their views about the subproject in Namkeung during the IPSA.

B. Implementation of the Subproject RP

43. Participation and consultation with stakeholders in Namkeung district and in Bokeo province continued during subproject implementation. Grievance redressal procedures were explained again to APs during IOL and DMS activities.

44. Step 8. After initial engineering designs had been completed a workshop in Namkeung was conducted in February 2009 about all resettlement and DMS procedures and PIUs were explained in detail all the resettlement steps to be taken from initial social assessment to Construction. (See Attachment 2 in the Appendix to the RP on non variable information under separate cover). This workshop included a transect walk through the planned water supply and drainage system and interviews with village heads and vulnerable APs. Based on that, PCU prepared the compensation plan and initial RP.

45. Step 8. The P. B consultant for Resettlement visited Namkeung again in June 2009 to share the initial RP and train the PIU and DRC about DMS. Then, PIU together with representatives of the mass organizations conducted the DMS after detailed designs were completed. Individual losses were calculated and recorded according to the local compensation rates and allowances. During August/September 2009, the PIU and Resettlement Committee checked and confirmed the calculation sent back by PCU. Then the final RPs were prepared by PCU.

46. Step 9. The final RP was sent to the subprojects and ADB and compensation declarations for individual APs are in the process of being prepared and delivered to the APs per household by the PIU. (See Attachment 3 of the Appendix on Non Variable

Information for the form Declaration for Affected Persons) APs then have 14 days the time to review the RP and sign and return the declarations or to make objections to the village head and GRC (see section C this section).

C. Grievance and Redressal

V. IMPLEMENTATION ARRANGEMENTS

A. Roles and Responsibilities

51. The roles and responsibilities of EA, PCU, PIU and consultants can be found in the Appendix on non variable information, under separate cover.

52. District Resettlement Committees (DRCs) have been established in Tonpeung and Huayxay districts (at 23 January 2009) chaired by the District Deputy Governors. Members of the DRC typically include representatives of OPWT, PNP, DAFEO, LWU, Lao Front for National Construction, and representatives of APs including ethnic groups. One member of the district resettlement committee is also a member of the PIU, to help coordinate LAR activities with the civil works schedule.

53. The DRC worked with the PIU in conducting consultation among APs, preparing final IOL and valuation of assets, identifying and allocating replacement land for those severely affected, ensuring smooth cooperation with local mass organizations, and

resolving grievances. District officials were trained in resettlement procedures and DMS as part of the Project’s implementation assistance and capacity building component.

B. Project Budget

The estimated cost of LAR for the Namkeung subproject is estimated as 131,968,151 kip (15,526 US$) which includes lost business and structure compensation for road improvement works (total of 80,265,464 kip (9,443 US $), the base LAR costs and a 20% reserve fund. These costs have been based on the estimations of unit costs by the DCTPC in district towns and APs perceptions during DMS (in June 2009). Based on the IOL the actual LAR costs was calculated. The calculation of LAR cost estimates for Namkeung are in Table 3.

57. The detailed IOL and updated unit cost form were prepared by the PIU at DMS. The unit cost form and detailed IOL can be found in respectively Attachments 2 and 3. The Government will be responsible for providing timely counterpart funds for all LAR activities.

58. If pipe laying takes place in the wet season 11 households with rice land might be affected temporary and will have to be compensated accordingly. However, costs will be neglectable and well within the reserve funds (325,000 kip).

Table 3: LAR Costs

Namkeung WS and WTP WS, WTP and Road Item Total US Dollars(1 Total Amount US Dollars(1 Amount US$ = kip) (kip) US$ = kip) (kip)

1 Land 8500 8500 Residential Land (permanent; - - not paid) 10,912,000 1,142.62 Residential Land (temporary; not paid) 9,454,400 990 9,454,400 989.99 Agricultural land (permanent) 3,840,000 402 3,840,000 402.09 Agricultural land (temporary; not paid) 4,665,000 488 4,665,000 488.48 2 Houses ------3 Business - - Temporarily affected during civil works* 5,460,840 642 25,278,740 2,974

Namkeung WS and WTP WS, WTP and Road Item Total US Dollars(1 Total Amount US Dollars(1 Amount US$ = kip) (kip) US$ = kip) (kip) 4 Structures - -

41,772,609 4,914 122,550,823 14,418 5 Trees - -

1,199,500 141 1,606,500 189 6 Crops - - annual yield 1,998,000 235 1,998,000 235 7 Other Assets - - - - Subtotal base Resettlement costs 54,270,949 6,385 155,274,063 18,268 Rehabilitation Allowances - -

Living Allowance 3 mnths - Living Allowance 6 mnth 3,260,000 384 3,260,000 384 Repair Allowance 288,000 34 288,000 34 Special Assistance - - Transport Allowance - - - Subtotal Allowances 3,548,000 417 3,548,000 417 Sub Total LAR Costs 57,818,949 6,802 158,822,063 18,685 Recalculated above 1 million kip 29,757,996 3,501 110,023,459 12,944 Minus Small Amounts not paid 50,000 6 50,000 6 Sub Total LAR Costs > 1million kip 29,707,996 3,495 109,973,459 12,938

20 % Reserve Fund 5,941,599 699 21,994,692 2,588 Total LAR Costs > 1 million kip 35,649,595 4,194 131,968,151 15,526 The costs and allowances are based on cost estimates for replacement costs at market value in June 2009 *1 road construction for 5 months and laying water pipe for 3 days *2 based on 20 kg/person/month; around 5,000 kip/kg rice

C. Implementation Schedule

60. Details on roles and responsibilities of all parties and on compensation payment procedures can be found in the Appendix to the RP on non variable information, under separate cover.

61. All resettlement activities will be coordinated with the civil works schedule for the Namkeung subproject. ADB will approve the civil works contract for the subproject to be financed from the loan proceeds after the Government has satisfactorily completed, in accordance with the approved RP for the subproject, compensation payments and resettlement measures. Establishment of rehabilitation assistance shall be in place and the area required for civil works should be free of all encumbrances before the commencement of civil works.

D. AP Database

62. A database for IOL has been started during subproject preparation and will be maintained during implementation. A single file for each subproject town will be created, with individual worksheets for each subcomponent causing LAR impacts. The IOL will be updated after the detailed design survey is completed. New APs found during implementation will be added to the database. This database will be given to the subproject sites. APs from the first survey who will no longer be APs due to changes in the design will be given notice. A form for their signature for notification was distributed (see Attachment 5) to the PIUs for their use.

Attachment 1: Village-level Impacts

No Namkeung Ethnicity Component Village Impact District Village Name 1 Lao, Khmu, Water supply- pipes 5 Households will be temporarily All of this Ban NamGnon- Samtao affected during laying of the pipe villages mai lines. expected to 2 Lue Water supply- pipes 1 Households will be severely have water WTP affected by the intake and 1 will supply Intake loose waste land to the WTP Sludge Pond 6 Households will be temporarily Ban NamGnon- affected during laying of the pipe kao lines. 3 Lue Water supply- pipes 14 Households will be Ban Namkeung- Kheun temporarily affected during laying kao of the pipe lines. 4 Lue Road improvement 23 Households will be Thai Neua Water supply- pipes permanently affected by road construction 23 Households will be Ban Namkeung- temporarily affected during laying mai of the pipe lines. 5 Lue Water supply- pipes 2 Households and 1 temple access will be temporarily affected during laying of the pipe Ban Doydaeng lines. Ban Kalom Water supply- pipes 1 Household will be temporarily 6 SydonGneng/ affected during laying of the pipe HouayPoun lines.

Attachment 2: District Unit Cost Estimates

Form Unit Costs provided by PIU and from meeting with DRC

Attachment 3: Inventory of Losses

IOL provided by PIU

Attachment 4: Record of Consultations with APs Number of Date Agency/Person Type of Participants Discussion/Responses/Outcomes Participants male female 2006 ADB, MCTPC 3 1 Staff  voluntary donation mechanism  voluntary donation according to the agreed criteria Nov ‘08 Namkeung 6 0 PIU staff, Prov. Water  Discussions on lay-out and civil Subproject town Supply , District Water works and villages Supply, District Governor  Identification for WTP location PIU, P. B consultant engineers Dec ‘08 Namkeung 18 5 Village Heads and Mass  Introduced the purpose and Subproject town Organizations, methodology of socioeconomic and villages stakeholders, potential APs survey (SES) and resettlement Social survey team census in villages  SES of 108 heads of households (6 core villages) Jan ‘09 Namkeung 4 0 Dep. District Governor, PIU  Lao Decree and Regulations Subproject town, Chief and PIU  RF P. B consultant  Need for DRC Resettlement  Need for cut-off data  Need for Grievance and Redressal Responsible Persons  Steps for PIU  Form for IOL AP Jan‘09 Namkeung 5 0 PIU staff, Prov. Water  Agreement on Project Procedures Subproject town Supply , District Water  Discussion on pricing P. B engineers, Supply, District Governor  Agreement on core villages MPWT Feb ‘09 Namtha Subproject 13 0 PIU Chief, OPWT Huayxay,  Explanation of initial RPs and IOL town, P. B TA Dep PIU, Party Control Ban  preparation and training for DMS Resettlement Namkeung Mai (DRC), PIU  further explanation of resettlement staff District (2 ps), District procedures Health Tonpeung (DRC), Deputy District Agriculture(DRC), Deputy District Huayxay and Tonpeung Land (DRC), Village Heads of Ban Namkeung Kao, Namkeung Mai, Sidoyngeng, Nangnon Mai, Doydaeng (DRC), Deputy Head Party Control Ban Namkeung Mai (DRC) Feb ‘09 Namkeung 3 staff 10 PIU Staff, Staff District  Assess social impact of project Subproject town, 5 village household Water Supply, Village especially on vulnerable groups TA Social heads members heads, villagers  Perceptions of APs Assessment 10 household members May ‘09 PIU + DRC 14 3 DRC  Continue to visit affected villages June ‘09 Namkeung district 10 6 PIU chief, PIU deputy, 2  Support PIU to do DMS town, TA PIU member, village chief  Get final IOL data for final Resettlement of each village, LWU in calculation of compensation for full each village RP (for ADB)  Start Payment Procedure July ‘09 PIU 81 hh All affected households  Conduct DMS Aug-Sept Namkeung PIU 81 hh All AP HHs  Confirmation of DMS data ‘09 and DRC . Date = date the consultation took place . Agency/person = agency/person conducting the consultations . Participants = Ministries, NGOs, affected people, local communities, etc. that participated in the session . Discussion/Responses/Outcomes = summarize what was discussed, participants reactions, and key outcomes

Attachment 5: Form for Consultation with no longer APs

LAO PEOPLE’S DEMOCRATIC REPUBLIC

Province:

District:

Persons who were APs in the previous design should be told if they are no longer affected after revision of the design. They can sign after the visit by the responsible persons.

No. Name Village Date Visited Signature Signature Visit by whom of former of former AP AP’wife

Certified by the Chief of the Village: …………

The Chief of PIU …………………….