SOUTH EAST ASIA DISASTER RISK MANAGEMENT (SEA DRM) PROJECT for LAO PDR Project ID No: P170945

SOUTH EAST ASIA DISASTER RISK MANAGEMENT (SEA DRM) PROJECT FOR LAO PDR Project ID No: P170945

Component 1: Integrated Urban Flood Risk Management In Muang Xay, Oudomxay (ODX) Province

Final Abbreviated Resettlement Action Plan 1 (ARAP1)

Volume 1 Main Report

Prepared by: DEPARTMENT OF WATERWAYS MINISTRY OF PUBLIC WORKS AND TRANSPORT VIENTIANE, LAO PDR

November, 2020 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province

Table of Contents Abbreviations and Acronyms ...... i Definitions and Terms ...... iv Executive Summary ...... 1 1 Introduction ...... 1 1.1 Purpose of this document ...... 1 1.2 Project Information ...... 1 1.3 Project Proponent ...... 3 1.4 Project Objectives and Outcomes ...... 3 2 Description of Component 1 ...... 4 2.1 Project Location ...... 4 2.2 Sub-project Design and Area of Influence ...... 6 3 Potential Impacts Identified ...... 9 3.1 General Impacts ...... 9 3.2 Land and Displacement Impacts ...... 10 3.3 Inventory of Loss ...... 11 3.4 Affected Communal Infrastructures ...... 13 3.5 Gender Considerations ...... 14 4 Socio-economic Census Data of Affected Village and Households ...... 14 4.1 Population and Households in the Affected Village ...... 14 4.2 Ethnic Groups ...... 15 4.3 Religions ...... 16 4.4 Infrastructures and Facilities ...... 16 4.5 School Facility and Health Centers ...... 19 4.6 Education ...... 19 4.7 Disease and Treatment Practices ...... 20 4.8 Employments and Incomes ...... 20 4.9 Labour Migration ...... 20 4.10 Land Use ...... 20 4.11 Cultural and Historical Infrastructure ...... 21 4.12 UXO Risk ...... 21 4.13 Poverty Groups ...... 22 4.14 Vulnerability Groups (VG) ...... 22 5 Legal Framework ...... 22 5.1 Objectives of Compensation Policy ...... 22 5.2 Policy, Legal, and Institutional Settings for Compensation ...... 23 5.2.1 National Legal and Regulatory Framework ...... 23 5.2.2 World Bank Policy on Involuntary Resettlement (OP/BP 4.12) ...... 25 5.2.3 Key Differences in Lao PDR Law and World Bank Policies on Involuntary Resettlement ...... 26 6 Institutional Framework ...... 31 7 Resettlement Strategy and Eligibility ...... 33 7.1 Key Principles ...... 33 7.1.1 Cash Compensation Approach ...... 34 7.1.2 House and Asset Relocation ...... 34 7.1.3 Additional Livelihood Restoration Measures...... 35 7.1.4 Compensation Principles ...... 35 7.2 Compensation Categories ...... 36 7.2.1 Permanent Loss...... 36 7.2.2 Temporary Loss ...... 36 7.2.3 Temporary Disturbance ...... 37 7.3 Eligibility Policy ...... 37 7.3.1 Categories of Displaced Persons ...... 37 7.3.2 Displaced Persons Eligibility Criteria ...... 38 7.3.3 Eligibility Cut-Off Date ...... 39

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7.4 Entitlements ...... 40 7.4.1 Rates for Compensation ...... 41 7.4.2 Compensation Matrix ...... 42 7.5 Resettlement Measures...... 45 7.6 Site Selection, Site Preparation, and Relocation...... 46 7.7 Housing, Infrastructure, and Social Services ...... 47 7.8 Livelihood Restoration Measures ...... 47 8 Organization and Implementation Structure ...... 48 8.1 Government Agencies ...... 48 8.2 Provincial Resettlement Committee (PRC) ...... 49 8.3 District Resettlement Committee ...... 50 8.4 Measures for Organizational Capacity Building ...... 51 9 Community Participation, Consultation and Information Disclosure ...... 52 10 Grievance Redress Procedures ...... 58 11 Action Plan and Implementation Schedule ...... 62 12 Compensation Budget ...... 65 13 Monitoring and Evaluation ...... 70 14 Attachments ...... 71

• Attachment 1 Inventory of Loss Form (IOL) • Attachment 2 Village and PAHs Social Economic Census Form • Attachment 3 Decision of Provincial Governor on Unit Rate for Compensation Costs • Attachment 4 Methodolog1y of Unit Rate Assessment • Attachment 5 Provincial Agreement on Establishment of PRC • Attachment 6 Other Agreements issued by the Province • Attachment 7 Cut-Off-Date • Attachment 8 Minutes of Valuation of Building Condition and Compensation Amount of 8 PAHs living in public land • Attachment 9 Minutes of Consultation with 8 PAHs living in public land • Attachment 10 Confirmation of available Residential Land and Houses of 8 PAHs living in public land • Attachment 11 List of Participants in November 2019 to March 2020 • Attachment 12 Results of Consultations in May 2020 • Attachment 13 Minutes of Meeting and List of Participants in May 2020 • Attachment 14 Photos of Consultation Meetings • Attachment 15 GRM Monitoring Form • Attachment 16 Compensation Offset Line

List of figures Figure 1 Project Location ...... 5 Figure 2 Location Map of the Package 1 (9 million US$) and Lot 1 ...... 7 Figure 3 General Plan for Add Package 1 (16 million US$)...... 8 Figure 4 GRM Procedure ...... 60

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List of Tables Table 1 Scope of works to address flooding in Muang Xay ...... 6 Table 2 List of affected villages located in project Lot 1 activities ...... 9 Table 3 Compensation Offset Line of Project Lot 1 Activity ...... 11 Table 4 Summary of all Losses (private) ...... 12 Table 5 Affected Government Land and Communal Infrastructures ...... 13 Table 6 Affected Trees in the Government Land (Stadium Land) ...... 14 Table 7 Population and Households in Affected Villages ...... 15 Table 8 Number of Household and Population to be affected by the Project Lot 1 ...... 15 Table 9 Ethnic Groups in Affected Villages ...... 15 Table 10 Ethnic Groups of Affected Households ...... 15 Table 11 Religions in Affected Villages ...... 16 Table 12 Religions in the Affected Households ...... 16 Table 13 Abbreviations of Infrastructure and Facilities in the Villages ...... 16 Table 14 Infrastructure and Facilities in the Affected Villages ...... 18 Table 15 Summary of Supporting Facilities of Affected HHs in Cheng Village ...... 18 Table 16 Number of School and Health Center in the Affected Villages ...... 19 Table 17 Distances from Each Village to School and Health Center/Hospitals ...... 19 Table 18 Level of Education in the Affected Villages ...... 19 Table 19 Agriculture Land in Affected Villages ...... 20 Table 20 Land Use in the Affected Villages ...... 21 Table 21 Gap analysis between the World Bank Involuntary Resettlement Policy (OP/BP 4.12) and Lao PDR 2016 Decree on Compensation and Resettlement of People Affected by Development Projects ...... 27 Table 22 Entitlement Matrix ...... 42 Table 23 Locations and Participants of Consultation Meetings ...... 52 Table 24 Results of Meeting in Nov 2019-Jan 2020 ...... 52 Table 25 Number of Participants in May 2020 ...... 54 Table 26 Summary of Consultation Results in May 2020 ...... 54 Table 27 Future Consultations ...... 56 Table 28 GRM Contact Persons ...... 61 Table 29: ARAP1 Implementation Schedule ...... 62 Table 30 Total Compensation Cost ...... 65 Table 31 Total Compensation Cost for Affected Structures and Trees ...... 66 Table 32 Dismantlement and Transportation Costs ...... 67 Table 33 Allowance Cost (Rice)...... 68

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Abbreviations and Acronyms ADRIF Asia Disaster Resilience Insurance Fund AP Affected People ARAP Abbreviated Resettlement Action Plan CBO Community Based Organizations CERD International Convention on the Elimination of All Forms of Racial Discrimination COI Cooridoor of Impact COC on GBV Code of conduct on gender-based violence COC on VAC Code of conduct on violence against children C&R Compensation and Resettlement CSO Civil Society Organizations DDMCC Department of Disaster Management and Climate Change DIA Designated Implementing Agency DESIA Department of Environment and Social Impact Assessment DMH Department of Meteorology and Hydrology DMS Detail Measurement Survey DONRE District Office of Natural Resources and Environment DOP Department of Planing DOW Department of Water Ways DPWT Department of Public Works and Transport DRFI Disaster Risk Financing and Insurance DRC District Resettlement Committee DRM Disaster Risk Management DRO District Resettlement Office EDPD Environmental Research and Disaster Protection Division ECC Environmental Compliance Certificate EDL Electricite Du Laos EG Ethnic Group EGEF Ethnic Groups Engagement Framework EGEP Ethnic Group Engagement Plan EGDP Ethnic Group Development Plan EMDP Ethnic Minority Development Plan EPL Environmental Protection Law ESCOP Environmental and Social Code of Practice ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESMMP Environmental and Social Management and Monitoring Plan ESCoP Environment and Social Code of Practice FGD Focus Group Discussion FPICP Free, Prior and Informed Consultation Process GBV Gender-Based Violence GOL Government of Lao PDR

GRC Grievance Redress Committee GRM Grievance Redress Mechanism GRS Grievance Redress Service ICCPR International Convention on Civil and Political Rights ICESCR International Convention on Economic, Social and Cultural Rights ICT Information and Communications Technology IEE Initial Environmental Examination IOL Inventory of Loss IR Involuntary Resettlement LFND Lao Front for National Development LWU Lao Women Union LRS-2 Lao Road Sector Project 2 MAF Ministry of Forestry M&E Monitoring and Evaluation MOF Ministry of Finance MOICT Ministry of Information, Communication and Tourism MONRE Ministry of Natural Resources and Environment MPI Ministry of Planning and Investment MPWT Ministry of Public Works and Transport NGO None Gevernment Organization NPA Non-Profit Association NRA National Regulatory Authority OP/BP World Bank Operational Policies PAH Project Affected Households PAP Project Affected Persons PDO Project Development Objective PDR People’s Democratic Republic PIU Project Implementation Unit PM Prime Minister PMU Project Management Unit PONRE Provincial Office of Natural Resources and Environment PRC Provincial Resettlement Committee PIU Project Implementation Unit PRO Project Resettlement Office PTRI Public Works and Transport Research Institute PUDA Provincial Urban Development and Administration PUDAA Provincial Urban Development and Administration Authority RAP Resettlement Action Plan RCS Replacement Cost Study RoI Region of Influence RP Resettlement Policy RPF Resettlement Policy Framework RSS Regional Safeguards Secretariat SEA-DRM Southeast Asia Disaster Risk Management Project for Lao PDR

SDS Social Development Specialist SIA Social impact assessment UDAA Urban Development and Administration Authority UXO Unexplosed Ordinance VRS Village Resettlement Sub-committees VAC Violence Against Children WB World Bank WBG World Bank Group

Definitions and Terms • Beneficiary - all persons and households from the villages who voluntarily seek to avail of and be part of the Project. • Compensation - payment in cash or in kind of the replacement cost of the acquired assets for the project. • Cut-off Date – the date prior to which the occupation or use of the project area makes residents/users of the project area eligible to be categorized as affected persons. The cut-off date is established in the Resettlement Action Plan (RAP). It normally coincides with the date of the census of affected persons within the project area boundaries, or the date of public notification regarding the specific civil works that would cause displacement. Persons not covered in the census, because they were not residing, having assets, or deriving an income from the project area, are not eligible for compensation and other entitlements. • Displaced persons - refers to all of the people who, on account of the activities listed above, would have their (1) standard of living adversely affected; or (2) right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed temporarily or permanently; (3) access to productive assets adversely affected, temporarily or permanently; or (4) business, occupation, work or place of residence or habitat adversely affected; and “displaced person” means any of the displaced persons, , including those who have no legal recognizable right or claim to the land they are occupying. • Eligible land holders – refers to affected persons who (a) hold title to land; or (b) do not hold title but whose possession of land can be legalized with a title pursuant to the Land Law of Lao People’s Democratic Republic (PDR) including those who have no legal recognizable right or claim to the land they are occupying, but who are nonetheless entitled to assistance to restore their living standards, livelihoods, and any land-affixed assets affected. • Entitlement – range of measures comprising compensation, income restoration, transfer assistance, income substitution and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base. • Household - means all persons living and eating together as a single social unit. The census used this definition and the data generated by the census forms the basis for identifying the household unit. • Income restoration - means re-establishing income sources and livelihoods of PAPs to a minimum of the pre-project level. • Improvements – structures constructed (dwelling unit, fence, waiting sheds, pig pens, utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household, institution, or organization. • Land acquisition - the process whereby a person involuntary loses ownership, use of, or access to, land as a result of the project. Land acquisition can lead to a range of associated impacts, including loss of residence or other fixed assets (fences, wells, tombs, or other structures or improvements that are attached to the land).

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• Project Authorities – refers to the Ministry of Public Works and Transport (MPWT), the Ministry of Planning and Investment (MPI), Ministry of Finance (MOF), Ministry of Natural Resources and Environment (MONRE) and Ministry of Information, Communication and Tourism (MoICT). • Project Affected Persons (PAP) or Households (PAH) – includes any person, households, entity, organizations, firms or private institutions who, on account of changes that result from the project will have their (i) standard of living adversely affected; (ii) right, title, or interest in any house, land (including residential, commercial, agricultural, forest, plantations, grazing, and/organizing land), water resources, fish ponds, communal fishing grounds, annual or perennial crops and trees, or any other moveable or fixed assets acquired, possessed, restricted, or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence, or habitat adversely affected, permanently or temporarily, with or without displacement. • Rehabilitation – refers to assistance provided to persons seriously affected due to the loss of productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life. Compensation for assets often is not sufficient to achieve full rehabilitation. • Replacement cost- is the method of valuation of assets which determines the amount of compensation sufficient to replace lost assets, including any necessary transaction costs. Compensation at replacement cost is defined as follows: For agricultural land, it is the pre-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labor and contractors' fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Such additional assistance is distinct from resettlement measures to be provided under other clauses in OP 4.12, Para. 6. • Replacement Cost Study (RCS) - The main objective of the RCS is to determine the rate of land prices based on actual transaction records of the affected areas, of affected main and secondary1 structures and other immovable assets. This study would be conducted by an independent

1 This includes fences, huts, toilets, kitchens, etc.

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appraiser. Based on the results of RCS, the PAH will receive compensation at replacement cost (reflecting market price) from RoUM for their loss of land and property due to the sub-project. The RCS will be implemented during the DMS. • Resettlement – means that all measures should be taken to mitigate any and all adverse impacts of a project on PAP property and/or livelihood’s, including compensation, relocation (where relevant) and rehabilitation as needed. • Unit Costs for Lands - The affected private lands will most likely fall under the land categories of either residential or commercial lands. The way to obtain data on market rates is to gather data on recent land sales at/around the sub-project area. Methods for data collection include direct interviews (i) real estate agents in Community Based Organizations (CBO) (ii) land owners at/around the sub-project area who are both PAHs and non-PAHs, and (iii) local authorities at/around the sub-project area. Per results of the RCS, the unit costs of land covered with recognized proofs of ownership, structures and other immovable assets are provided. • Unit Costs for Structures - The houses/structures affected by the sub-project have been categorized into two main groups – house/dwelling and other structures. The methodology employed for costing house/structures includes a quantity survey and detailed measurement of the component parts of each structure and a determination of the market value of the house/dwelling. Other structures such as wells and fences, and cultural assets such as stupas, have to be compensated at their market price, and the results of the specific rates of structures are provided. • Vulnerable Groups - are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) households headed by women, the elderly people or people with disability and housholds with no labors, (ii) households living below the poverty threshold, (iii) the landless, and (iv) ethnic groups.

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Executive Summary The Lao People’s Democratic Republic (Lao PDR) is frequently impacted by flood which causes extensive damage to properties and impacts people life. Between 1991 and 2013, on average, 200,000 people per year were affected by various floods, which pose a serious threat to wellbeing life and socio-economic development in Lao PDR. Muang Xay, the capital town of Oudomxay province (ODX) also had been highly damaged by serious flood in 2008, 2013 and 2017. Therefore, the Government of Lao PDR (GOL) through Ministry of Public Works and Transport (MPWT), Department of Waterway (DOW) is implementing the Lao PDR Southeast Asia Disaster Risk Management Project (Lao-DRM or the Project) with financing from the World Bank (WB) The Project became effective on 11 October, 2017 with a commitment amount of US$30 million. The Project aims to reduce the risk of flooding in the priority area and enhance disaster risk financing capacity of Lao PDR. The Project consists of 5 components namely Component 1: Urban Flood Risk Management, Component 2: Hydromet Modernization and Disaster Risk Management Systems, Component 3: Disaster Risk Financing and Insurance, Component 4: Project Management, and Component 5: Contingency Emergency Response. This Abbreviated Resettlement Action Plan (ARAP) prepared by the DOW, MPTW of Lao PDR covers the Lot 1 of project activities under Component 1: Urban Flood Risk Management to be implemented in Muang Xay, ODX and known as (ARAP1). The Lot 1 includes river works (dike and riverbank protection), weir, riverside parks, and riverside road, drainage and flap gates in Muang Xay of which the advanced design with Corridor of Impacts (COIs) have been determined. The ARAP1is subject to possible revision to capture further development and fanilzation of the detailed work design with COIs to be firmed up by the work contractor being selected.

Objective of the Abbreviated Resettlement Action Plan The overall objective of resettlement planning is to avoid involuntary resettlement (IR) wherever possible; to minimize IR impacts by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all affected people (AP) relative to pre-project levels; and to improve the standards of living of poor APs and other vulnerable groups. The objectives of the ARAP1 are to: (i) serve as a binding document to ensure a fair and transparent process for participation, identification and mitigation of involuntary resettlement (IR) impacts, and payment of compensation and provision of assistance to affected people (AP); (ii) guide the Project Management Unit (PMU) at the DOW of MPWT in clearly identifying, compensating, and restoring the livelihoods of PAPs; and (iii) provide direction for the PMU in updating/finalizing, implementing and monitoring the ARAP1. The ARAP1 identifies measures to ensure that APs are, (i) informed about, and consulted on, the proposed project and agree in principle with the Project; (ii) informed about their options and rights pertaining to involuntary resettlement impacts; (iii) consulted on, offered choices among, and provided with suitable compensation and/or resettlement alternatives; and (iv) provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the Project.

Scope of Land Acquisition and Resettlement

Within a Lot 1 Project COIs ranging from 1,5 m to 137 m identified from the river bank alignments, it is determined that 9 households (42 people including 22 women) in Cheng village located on the right side along Nam Kor river running through Muang Xay would be affected by the project activities under Lot 1 (USD4.5 million). Impacts take various forms including household resettlement and loss of industrial trees. The Lot 1 project activities are located in public land with 5 single story houses (entirely affected), 2 incomplete structures (only post and basement beam), 1 wooden house, 9 secondary structures and 60 industrial trees will be affected. These structures are located in public land; however, compensation will be made for all affected structures (8 households) and trees (2 households). It was agreed that compensation for land acquired will not be provided because firstly, all these 9 PAHs were well-informed and aware that the land plots occupied and used belong to the state (provincial authority) with a series of written notifications provided by the Provincial Governor, Provincial Office of Natural Resources and Environment (PONRE) and Provincial Office of Public Work and Transport in 2014, 2015 and 2016 respectively before occupying the land (see Annex 6), and lastly none of these 9 PAHs are considered to be poor and vulnerable based on the Poverty Criteria Decree, 2017 and the definition of the vulnerable group provided in this ARAP, Section of Definition. Moreover, all these PAHs possess their own plots of residential land with more permanent houses with more solid structures identified (evidence with the pictures of land and houses owned is provided in Annex 10). Thus, the land occupied are mainly used as a garden and plantation.

The estimated total cost for compensation and income restoration is LAK1,312,527,400 or about USD145,837 (USD1=9,000LAK) covering compensation for affected structures and industrial trees, dismantlement, transportation, and transition support (rice). This amount of budget for ARAP1 implementation excludes compensation cost for affected communal public utilities and infrastructures/assetswhich (electric grid, water supply and telecommunication system) will be covered under a separate relocation plan and implementation arrangement with concerned agencies.

Impacts on Land and Assets Within one affected village (Cheng Village), it is determined that the impacts on land and assets are considered as minor impacts as only 9 households (HHs) with 5 single story houses, one wooden house, 2 incomplete house structures, 9 secondary structures and 60 industrial trees will be affected. These structures are located in public land; however, compensation will be made for all affected structures (8 HHs) and affected trees (2 HHs). Please refer Attachment 8 Minutes of Valuation of Building Condition and Compensation Amount of 8 PAHs living in the public land. The details of losses are broken down in the table below: No. Name of PAP Type of Description Unit Affected Valuation of Remarks Loss Number Building Condition (%) 1 Mr. Bounsavath Single Concrete post, m2 90 75 4 years Chanthaloun story house Tile floor, used Brick wall, Tile roof

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No. Name of PAP Type of Description Unit Affected Valuation of Remarks Loss Number Building Condition (%) Kitchen Concrete post m2 62.5 62 4 years and floor, used Brick wall and Zinc roof 2 Ms. Soutchay House Post post 6 Vonglom structure Beam m 27 Single Concrete post, m2 16 80 1 year story house Concrete floor, used Brick wall, Tile roof Porch of Wooden m2 12 80 1 year house structure, Zinc used roof Industrial Teak tree tree 10 tree 3 Mr. Sengchanh House Post post 6 Vonglom structure Beam m 27 4 Mr. Thongvanh Single Concrete pos, m2 120 75 4 years Thaiphathep story house Wooden floor, used Brick wall, Tile roof Kitchen Wooden post, m2 15 65 4 years Concrete floor, used Wooden wall, Zinc roof 5 Mr. Somphone Single Concrete post, m2 110 80 4 years Chithakrang story house Tile floor, used Brick wall, Tile roof Kitchen Wooden post m2 18 60 4 years and floor, used Wooden wall, Zinc roof Parking Wooden post, m2 21 40 4 years Zinc roof used 6 Mr. Khammanh Single Concrete post, m2 72 70 2 years Chittakrang story house Tile floor, used Brick wall, Zinc roof Kitchen Wooden post, m2 21 60 4 years Wooden floor used and wall, Zinc roof Toilet Concrete post m2 4 50 4 years and floor, used Wooden wall and Zinc roof Animal Wooden post, m2 4 30 4 years husbandry Ground floor, used

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No. Name of PAP Type of Description Unit Affected Valuation of Remarks Loss Number Building Condition (%) Wooden wall, Zinc roof

7 Mr. Xayysan + Moveable Bamboo post m2 6 50 Ms. Khambai hut and floor, Zinc roof 8 Mr. Khamkong Wooden Wooden post m2 54 70 2 years Vongphachanh house and wall, Zinc used roof 9 Mr. Khamlar Industrial Teak tree tree 42 Inthani tree Rosewood tree 8

Measures to Minimize Impacts and Resettlement

Efforts have been made to minimize the resettlement impacts by analysis of design options to reduce the width of the COIs. In addition, and as part of the project’s resettlement policy, PAHs who are required to resettle will be provided with sufficient time and support to rebuild their new houses and shops prior to the commencement of civil works. The project will ensure that PAPs are able to continue to have access to their houses and their present livelihood activities during project implementation to the extent possible. Impacts on their livelihood and business will also be minimized through close and effective constract management and work supervison by PMU and their supervision consultant to ensure that ESMP is effectively complied with and that works are completed as per workplan and timeframe to be agreed.

Legal and Policy Framework

This ARAP1 for ODX project complies with the World Bank’s OP 4.12, applicable provisions of Decree 84 of the Lao Government on Compensation and Resettlement, the Drecree on Environmental Impact Assessment (2019) and other relevant national legislation including the Land Law, 2019. Wherever, gaps and discrepancies exist between the WB OP. 4.12 and the GOL policies, the former (the WB policy) will prevail as per the the Project Agreement.

The individuals, households and businesses that will likely be affected by the the construction works have been surveyed and consulted. Compensation costs have been calculated based on the rates determined by the survey team endorsed by the Decision of Provincial Governor, No. 1105/GOV.ODX, dated 15 September 2020 for affected buildings and trees.

Implementation Arrangements

The Project Management Unit (PMU) established under DOW of MPWT will be responsible for overall project management and coordination with concerned agencies and donors at the central level. Responsibility for day-to-day sub-project implementation, work supervision, safeguard implementation and monitoring of the ARAP1 lies with the Implementation Unit (PIU) established in the Water Ways Sector of the Provincial Department of Public Works and Transport (DPWT) in

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Oudomxay province. The PIU/DOW is partnered with and supported by Environment and Disaster Prevention Division (EDPD) under the Public Work and Transport (PTRI) under MPWT to ensure ARAP1 as well as associated safeguard instruments including Environmental and Social Management Plan (ESMP) and Ethnic Group Engagement Plan (EGEP) are prepared, effectively implemented and monitored by the PIU in accordance to the national legislations and World Bank Policy 4.12. Pursuant to the active legislation, MONRE is responsible for environmental compliance review. MONRE is also responsible for legal matters regarding land ownership and expropriation. In other words, the PMU /DOW through its provincial agency (PIU/PDPWT) are responsible for supervising and implementing safeguards, including the ARAP1 with the technical assistance and support from EDPD/PTRI. ARAP 1 and compensation including Grievance Redress Mechanism (GRM) will be reviewed and monitored by the Provincial and District Resettlement Committees, which will be established in accordance with the Decree 84, 2016 on compensation and resettlement. Village Resettlement Sub-committees (VRS) will also be established as needed in villages where land acquisition and resettlement will occur.to facilitate ARAP preparation and implementation including consultation with PAP and manage the grievance redress mechanism at the village level.

Monitoring

The ARAP monitoring and evaluation consist of two parts: the internal resettlement monitoring and the external resettlement monitoring and evaluation. The PMU with technical support from EDPD/PTRI will carry out internal monitoring of the implementation. Quarterly internal monitoring reports will be submitted to the DOW, PTRI/EDPD management and WB. The DOW will engage an independent entity or consultant to do external monitoring of the project on a semi- annual basis. The external monitoring consultant will assess and certify the completion of ARAP1 and resettlement process befor the commencement of the civil work. Both internal and external monitoring reports will be disclosed publicly.

Budget The total cost for ARAP1 implementtaion is estimated at LAK1,312,527,400 or about USD145,837 (USD1=9,000LAK) for compensation and income restoration. This excludes cost for affected communal infrastructures/assets, government land (stadium land), trees and crops in the govenment land of which relocation arrangement will be made separately with the concerned government entities. The total budget is broken down in the table below:

No. Description Total Compensation Total Compensation Cost (LAK) Cost (USD) 1 Compensation cost for 1,268,717,400 140,969 affected structures and inductrial trees 2 Dismantlement and 28,450,000 3,161 Transportation Costs 3 Transition support in the form 15,360,000 1,707 of rice

Total Compensation Cost 1,312,527,400 145,837

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1 Introduction 1.1 Purpose of this document 1. This Abbreviated Resettlement Action Plan (ARAP1) of the Southeast Asia Disaster Risk Management Project for Lao PDR or SEA-DRM (hereafter ‘the Project’) has been prepared by the Department of Water Ways (DOW) for the Ministry of Public Works and Transport (MPTW) of the Lao People’s Democratic Republic (Lao PDR). This ARAP1 covers Lot 1 of the project activities under Component 1 of the project that will be implemented in Muang Xay, Oudomxay province. This ARAP1 (hereinafter referred to ARAP1) has been prepared in line with the national regulatory requirements as well as meeting the World Bank’s Safeguards Policies. 2. This ARAP1 complies with the World Bank’s OP 4.12 on Involuntary Resettlement, Decree 84 (2016) of the Lao Government (GOL) on Compensation and Resettlement for People Affected by Development Projects, and the Decree on Environmental Impact Assessment (2019). Where gaps and discrepancies between World Bank’s OP 4.12 and the GOL legislations identified in this ARAP1, the former will prevail. 3. The objectives of the ARAP1 are to: (i) serve as a binding document to ensure a fair and transparent process for participation, identification and mitigation of involuntary resettlement (IR) impacts, and payment of compensation and assistance to affected people (AP); (ii) guide the Project Management Unit (PMU) at the Department of Water Ways of MPWT in clearly identifying, compensating, and restoring the livelihoods of PAPs; and (iii) provide direction for the PMU in updating/finalizing, implementing and monitoring the ARAP1. 4. The ARAP1 identifies measures to ensure that APs are, (i) informed about, and consulted on, the proposed project and agree in principle with the Project; (ii) informed about their options and rights pertaining to involuntary resettlement impacts; (iii) consulted on, offered choices among, and provided with suitable compensation and/or resettlement alternatives; and (iv) provided prompt and effective compensation at full replacement cost for loss of assets attributable directly to the Project. 5. Scope of ARAP1: ARAP1 covers potential social impacts, land acquisition, household resettlement and livelihood and income losses anticipated from the Lot 1 of key project activities under Component 1 of the Lao DRM project. These include profile improvement, dike, riverbank protection, weir and riverside parks in Muang Xay, the provincial town of Oudomxay province. Lot 1 is planned to be implemented from December2020. ARAP1 also provides impact mitigation measures and compensation required to be provided PAPs and PAHs for their assets, land, livelihood and income affected and lost in Cheng villages in Muang Xay town as a result of project implementation. 1.2 Project Information 6. Lao PDR is frequently impacted by flood which causes extensive damage to properties and impacts people life. Between 1991 and 2013, on average, 200,000 people per year were affected by various floods, which pose a serious threat to wellbeing life and socio-economic development in Lao PDR. The Muang Xay City also had been highly damaged by serious flood in 2008, 2013 and 2017. 7. Therefore, the Government of Lao PDR is implementing the Lao PDR Southeast Asia Disaster Risk Management Project. The South East Asia Disaster Risk Management Project for Lao PDR (Lao-DRM or the Project) is being implemented with financing from the World Bank (WB) with an

Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 1/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province aim to reduce the risk of flooding and enhance disaster risk financing capacity of Lao PDR. The Project was approved on July 6, 2017 and became effective on 11 October, 2017, with a commitment amount of US$30 million. 8. The Project consists of 5 components: a) Component 1: Urban Flood Risk Management - This component includes a set of structural and non-structural investments designed to strengthen flood resilience in Oudomxay Province, particularly, for the provincial capital of Muang Xay and areas in proximity. Urban flood risk management infrastructure investments proposed for Oudomxay provincial capital and proximity include financing for riverbank protection, dike, drainage canal, flood gates, weirs and riverside parks. Such infrastructure will protect the urban core from flash floods that occur regularly during the rainy season. The designated implementing agency (DIA) for this sub-project will be the DOW under the MPWT. b) Component 2: Hydromel Modernization and Disaster Risk Management Systems - This component includes financing for capacity building measures to enhance and strengthen forecasting, early warning and disaster risk management (DRM) systems in the Ministry of Natural Resources and Environment (MONRE). This component is further bifurcated into two sub-components including: (i) weather forecasting and early warning systems to strengthen the Department of Meteorology and Hydrology (DMH) capacity to predict floods and enhance early warning communication systems; and (ii) DRM through enhanced regulatory capacity in the Department of Disaster Management and Climate Change (DDMCC). c) Component 3: Disaster Risk Financing and Insurance - This component includes technical assistance to increase financial resilience of Lao PDR against natural disaster and climate risks in terms of the Government of Lao PDR’s (GOL) capacity to meet post-disaster funding needs. This component is further segregated into three sub-components including: (i) national-level disaster risk financing technical assistance for the development of a national financial protection strategy building on a combination of national and regional disaster risk financing instruments. The strategy would build on existing GOL capacity and previous WB support to the Ministry of Finance (MOF) and Ministry of Planning and Investment (MPI); (ii) establishment of the Asia Disaster Resilience Insurance Fund (ADRIF) to support activities for the establishment of a regional disaster risk pooling mechanism; and (iii) financing of the GOL contribution to join the ADRIF. d) Component 4: Project Management - This component will support management and implementation of the project. It will include technical and fiduciary staff that will be seconded to the Project Management Unit (PMU) from relevant implementing departments. The project management component will finance institutional support and capacity development for implementation and fiduciary arrangements; including procurement, financial management, management of safeguards issues, internal and external auditing, and the establishment of the project monitoring, evaluation and reporting systems. e) Component 5: Contingency Emergency Response - This “zero component” allows rapid reallocation of project proceeds for emergency recovery and reconstruction support in the event of a declared disaster. This component would finance disbursements against a positive

list of critical goods and/or the procurement of specific works, goods, services and operation costs required for emergency recovery. An Emergency Response Operational Manual would be developed for this component detailing financial management, procurement, safeguards and any other necessary implementation arrangements to be submitted to and accepted by the WBG prior to the disbursement of project funds. 1.3 Project Proponent 9. The GOL through the MPTW is the Project proponent for Component 1 of the Project. The project will be implemented through existing GOL structures of the line ministries. Component 1 will be implemented by DOW within MPWT, Component 2 by DMH within MONRE, Component 3 and 5 by SRD within MOF, and Component 4 will be overseen by DOP in MPI. National DRFI Working Group has been established, chaired by MOF. 10. MPI is responsible for overall coordination of the project. MPI will procure specialists to provide expertise and support related to procurement, FM, safeguards compliance, and project management (M&E) related to the overall project. Component-specific works and consultants will be procured by DOW, DMH, and MOF 11. The Project Management Unit (PMU) under DOW of MPWT will be responsible for overall project management and coordination with concerned agencies and donors at the central level, An Implementation Unit (PIU) is established in the Water Ways Sector of the Provincial Department of Public Works and Transport (DPWT) in Oudomxay province for day-to-day sub-project management and work supervision. The PIU/DOW is partnered with and supported by Environment and Disaster Prevention Division (EDPD) under the Public Work and Transport (PTRI) under MPWT to ensure ARAP1 as well as associated safeguard instruments including Environmental and Social Management Plan (ESMP) and Ethnic Group Engagement Plan (EGEP) are prepared, effectively implemented and monitored under the Project in accordance to the national legislations and World Bank Policy 4.12. 12. The contact details for the Project proponent of Component 1 is as follows:

Ministry of Public Works and Transport of Lao PDR Department of Waterways Lanxang Avenue, Vientiane Capital, Lao PDR Contact: 856-21 412250 Fax: 856-21 412250 1.4 Project Objectives and Outcomes 13. The Project Development Objective (PDO) is to reduce the impacts of flooding in Muang Xay of Oudomxay (ODX) Province and enhance capacity of the Government of Lao PDR (GOL) to provide hydro-meteorological services and disaster response. 14. The project will directly provide benefit to communities in the urban area of Muang Xay, which has a population of 98,000, with 50 percent estimated to be female. End users of improved hydro meteorological services and weather information include particularly the population of the Nam Ou River Basin, comprising the Oudomxay (307,622), Luang Prabang (431,889), and Phongsali Provinces (177,989) also benefit from the project. National- and local-level project stakeholders will benefit from capacity and institution-building activities. Indirect project beneficiaries include (a) travelers passing through Muang Xay, as the most important traffic junction in northern Lao PDR; (b) the country’s population benefitting from more reliable, actionable, and better communicated Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 3/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province weather, climate, hydrological, and early warning information; and (c) the wider population of Lao PDR benefitting from improved institutional capacities for disaster risk finance and integration of DRM into sector strategies 15. The achievement of the PDO will be measured through the following key indicators: (i) Percentage of urban population in Muang Xay protected from floods, of which are female (percentage). (ii) Satisfaction of weather information end-users increased (Yes/No). (iii) Lao PDR has information and capacity to access sovereign disaster risk insurance (Yes/No). 2 Description of Component 1 2.1 Project Location 16. The Oudom Xay Province is located in the northwest of Lao PDR and is bordered by China to the north as well as by five other Lao provinces, the Phongsaly Province to the northeast, the Luang Prabang Province to the east and southeast, the Xayabouly Province to the south and southwest, the Bokeo Province to the west, and the Luang Namtha Province to the northwest. The Oudom Xay Province consists of seven districts and 471 villages and covers an area of 15,370 ㎢ 17. The Muang Xay City, provincial capital, is situated in the north part of the province and covers an official area of 399 ㎢ although the majority of the population live within an area of 72.5 ㎢. The Muang Xay City is situated and surrounded by scenic mountains in the Nam Kor River Basin. The town lies in the Muang Xay which borders the Namo District to the northwest, the La District to the northeast, the Nambak District of the Luang Prabang Province to the east and the Beng, Nga and Nalae Districts of the Luang Namtha Province to the west. 18. This project area covers the Nam Kor River and its tributaries in the Oudom Xay Province. Accordingly, it is required to understand the characteristics of the Nam Kor River Basin. In this section, therefore, general conditions of the project area including geographical, hydrological, and socioeconomic conditions of the Nam Kor River Basin and flood characteristics are presented, especially within the Muang Xay City.

Figure 1 Project Location

2.2 Sub-project Design and Area of Influence 19. The preliminary design of the works under Component 1 of the Project which is covered under this ARAP1 includes 1.3km river bank protection works on the right side of Nam Kor River (river profile improvement, dike and bank-protection), rehabilitation and upgrading of Park 2, road improvement, Nam Kor movable weir and one small flap gate. 20. Based on the preliminary design, the Project works will include (i) River works for river profile improvement comprising excavation/dredging and construction of dike and river bank- protection, (ii) Construction and/or rehabilitation of two Riverside Parks including improvement of existing access roads, (iii) Demolition of 1 existing weir and construction of a movable weir in Nam Kor downstream of Park 2, and (iv) Construction and/or rehabilitation of small flap gates for urban drainage improvement. The feasibility study recommended for a total investment of about US$44 million for addressing the flood issues in Muang Xay. However, given limited fund available, only Package 1 (valued at about US$16 million) will be implemented (in 2 Lots) under the LDRM-AF project which is established to mitigate flood damage of 20-year return period floods (Figure 3). The section of Lot 1 is from Nam Kor Br. 2 to Nam Kor Br. 4 in the right side of the Nam Kor River as figure below. Its length is 1.3 km and the cost estimation of Lot 1 is US$4.5 million. Details are provided in table 1 below. Table 1 Scope of works to address flooding in Muang Xay

Package Scope of Works Budget (USD) Package 1 Lot 1 consists of 5 works as follows: Lot 1 Riverworks: Dike, Riverbank-protection, dredging on the US$16M (with river bed: an additional Nam Kor River: L=1.3km, right side (calculated along the budget of US$7 centerline of the river channel) million from Riverside Park 2 (11,800m2): Rehabilitation and upgrading WB fund in of Park 2 March 2020). Riverside Road (L=950m): Road improvement near the Riverside Park 2 Nam Kor Movable Weir (1 weir): Located in Nam Kor downstream of the Riverside Park 2 Drainage and Flap Gate (1 gate): Construction of one small flap gates to improve effectiveness of urban drainage. Package 1 Lot 2 consists of 4 works as follows: Lot 2 Riverworks: Dike, Riverbank-protection, dredging on the river bed: Nam Mao River (upstream): L=4.0 km (calculated along the east side riverbank) Nam Kor River (upstream): L=1.3 km (calculated along the east side riverbank) Nam Kor River: L=1.75 km, left side (calculated along the centerline of the river channel) Riverside Park 1 (22,000m2): Construction of River Park 1 Drainage and Flap Gate (13 gates): Construction of 13 small flap gates to improve effectiveness of urban drainage.

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Package Scope of Works Budget (USD) Resettlement Area (4.9 ha): Development of a new resettlement area near Phu That Pagoda at the Nam Mao River (see Figure 2 below). Total According to the Feasibility Study report, there have been Investment recommendations for the structural measures necessary to US$ 44.2 mitigate flood damage in the Nam Kor river basin against a million design flood with a 20-year return period. The (This cost recommendations also include the structures to be includes implemented under Package 1 above. Package 1) Recommended structural measures for this package are as below: i) Riverworks: Dike, Bank-protection, dredging on the river bed – Dike: 20.0 km (Nam Kor and Nam Mao river) – Bank-protection: 6.1 km (Nam Kor and Nam Mao river) – Dredging: 8.0km (Nam Kor and Nam Mao river) ii) Nam Mao Retention Pond and 2 Lateral Weirs: 1.63 million m2 iii) 26 Drainages and Flap Gates iv) Improvement of Existing Weir and Construction of 1 Movable Weir v) 2 Bridges and 2 Riverside Parks However, two reservoirs in the upstream of the basin have been recommended for long-term measure to mitigate flood damage in the Oudomxay province.

Figure 2 Location Map of the Package 1 (9 million US$) and Lot 1

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Figure 3 General Plan for Add Package 1 (16 million US$)

21. The Report on Feasibility and Preliminary Design (FS/PD) prepared by FS/PD Consultant provides information on the detailed facility alignment and the layout plans including information on the major construction methods and an estimated cost taking into account the feasibility study and GOL’s opinion on priorities.. However, this information has been and may be further adjusted and reconsidered taking into account the needs to avoid and minimize potential impacts due to land acquisition and relocation of affected peoples. Table 2 briefly describes the Area of Influence and Villages to be potentially covered by the ARAP1.

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Table 2 List of affected villages located in project Lot 1 activities

Project Activities Village Name Remarks River works: Nam Kor river: L=1.3km (calculated Cheng IOL Survey Completed. along the centerline of the river channel)

Riverside Park 2 (11,800m2): Riverside Park 2 located near the new Cheng IOL Survey Completed stadium. Riverside Road (L=950m): Road Cheng IOL Survey Completed improvement near the Riverside Park 2

Nam Kor Movable Weir (1 ea): Located 1. Cheng IOL Survey Completed in Riverside Park 2 on the Nam Kor river

1 Flap Gate Cheng IOL Survey Completed 22. The details of project description can be found in Attachment 1A in ESMP Report prepared to be applied under the same sub-project. 3 Potential Impacts Identified 3.1 General Impacts 23. Positive Impacts: It is expected that investments in Muang Xay urban flood risk management will have both positive and negative impacts that could ensue as a result of sub-project implementation of the proposed riverbank protection, drainage canal reparation, dike and flood gates, and riverside park(s) infrastructure. The urban flood risk management sub-project activities will be beneficial for the majority of Muang Xay residents whose properties and livelihoods will be largely unaffected due to the proposed infrastructure investments. It is expected that construction and installation of urban flood risk management infrastructure investment will bring socioeconomic, health and ecological benefits, such as, protecting the river from siltation and sedimentation as a result of runoff and riverbank erosion, and reducing the loss of lives and/or livelihoods caused by flooding. The project will help create an environment of safety, health and well-being for the majority of people who have suffered from the effects of flash flood events in the past. 24. Negative Impacts: for construction of new infrastructure (dike, riverbank protection, movable weir, riverside parks, and riverside road, drainage and flap gates) in Oudomxay’s provincial capital, Muang Xay, and vicinity, it is likely that for most people, the potential negative (adverse) impacts will be moderate, temporary and localized, although cumulative effects cannot be discounted. However, for people living in the areas identified for the construction of two riverside park(s), adverse impacts due to resettlement and/or the loss of riverine land are anticipated. During the preliminary community consultations in the provincial capital, it was determined that some households living in the areas identified for the riverside park(s) are from ethnic groups (Khmu, Phou Noi). With a Project Corridor of Impacts (COIs) identified at 1,5 m to 137 m, it is determined that household in 16 villages would be affected by the project investments. Impacts take various forms of asset and income losses including land acquisition, household resettlement and

Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 9/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province livelihood and income losses from the key project activities under Component 1 of the DRM project. Based on the engineering design and COIs identified for the Lot 1 project activities (US$4.5 million), the IOL has been conducted in one villages (B. Cheng) within the offset line ranging from 1.5m to 17m from river bank alignment as detailed in Table 3 below. It is determined that the impacts on land and assets within B. Cheng are considered as minor impacts as only 9 households with 5 single story houses, one wooden house, 2 incomplete structures, 9 secondary structures and 60 industrial trees will be affected. These structures are located in public land; however, compensation will be made for all affected structures (owned by 8 HHs) and affected trees (2 HHs). 25. Ethnic Groups: as this project work will have an impact on minority ethnic groups (EGs) such as Khmu and Hmong. An EGEP will be prepared as a standalone document to comply with EGEF. EGEP provides procedures, process, implementation and monitoring arrangements and budget to ensure that mitigation measures to address and minimize negative impacts on ethnic groups. EGDP also ensures that they receive necessary support to engage in and benefit from the project investments in an inclusive and culturally appropriate manner 26. Physical Cultural Properties and Sensitive Areas: for the most part, local hospitals, schools, temples and markets are found outside the COIs which are mainly within conservation area boundary designated by the provincial authority (urban development planning), thus the civil works would unlikely cause major impacts to these sensitive areas. However, a detailed Environmental and Social Management Plan (ESMP) is prepared as a standalone document to be applied by the subproject in accordance with ESMF. The ESMP including both envirimental, social, health and safety measures, chance findings and good civil engineering practices (e.g., ESCoP) will be applied to mitigate potential adverse impacts induced by the proposed sub-project.

3.2 Land and Displacement Impacts 27. The project is expected to cause moderate physical relocation as a result of the proposed sub- project related to the urban flood risk management infrastructure investments in Oudomxay’s provincial capital, Muang Xay. Urban flood risk management infrastructure initiatives may require the permanent use of some areas for riverside protection, dike, drainage canal and flood gates, weir, riverside park(s) and riverside road under the Lot 1. These project activities (US$4.5 million) will affect 5 single story houses (entirely affected), 2 incomplete structures (only posts and basement beams), 1 wooden house, 9 secondary structures and 60 industrial trees. These structures are located in public land; however, compensation will be made for all affected structures (8 HHs) and affected trees (2 HHs) based on the Decision of Provincial Governor, No. 1105/GOV.ODX, dated 15 September 2020 for affected buildings and trees. . 28. In addition, temporary use of some areas will be required for borrow pits or waste disposal sites which may result in unexpected low-level impacts, including disruption of access or damage to property (i.e., land and buildings). Urban flood risk management infrastructure initiatives may also require the relocation of temporary structures, temporary occupation of plots of land or may cause damage to crops and trees within the dike construction zone, other footprint (i.e., drainage canal and flood gates, weir and riverside parks) or RoI.

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29. The process of consultation with potential contributors has been conducted in an open and transparent manner by the resettlement committees and PTRI with agreements reached on compensation, resettlement process and timeframe. voluntary contributions based on informed consent and choice by affected people. Local authorities have documented the consultation process, outcomes and agreement as part of the urban flood risk management infrastructure investment. 30. All PAPs and PAHs including those without legal status of property and land, will receive compensation and support of various kinds, as per the principles outlined in the Entitlement Matrix, to assist them in their efforts to maintain their livelihoods and well-being prevailing prior to implementation of the project. Those who may have encroached or illegally occupied land after the cut-off date will not be compensated for loss of land but will receive compensation for loss of other assets which have been established with their own finances and for loss of income such that they are assisted in their efforts to maintain their livelihoods and well-being. 31. PAPs were notified of the ODX project implementation schedule and consulted regarding the principles of land acquisition and loss of, or damage to, assets. Damages to assets, such as, structures, village infrastructures, standing crops, trees, fences, and loss of income, including loss of harvest will be minimized, although some disruption is inevitable. Where disruption occurs, PAP and PAH will be compensated without regard to legal status of ownership according to the Entitlement Matrix. 32. A market survey has been conducted to assess the prevailing market prices of land and construction materials for affected structures, crops and relevant items which will be used as the unit prices to determine compensation. This exercise will provide assurance to communities and PAP and PAH that they will be able to purchase equivalent value replacement land and rebuild new houses and other types of structures affected. Loss of income and assets will be compensated on a net basis without tax, depreciation or any other deduction.

3.3 Inventory of Loss 33. Due to phasing strategy and the engineering design currently available for the Lot 1 project activities (US$4.5 million), the IOL has been conducted in one village (B. Cheng) within the offset line ranging from 1.5m to 17m from river bank alignment as summarized in Table 3 below. Further detail is in Attachment 16. Detailed measurement survey and land and asset valuation have been conducted during the ARAP1 preparation. The current design results in loss of public land which have been occupied by 9 households, 5 completed single story houses, 2 incomplete structures, 9 secondary (associated) structures, and 60 industrial trees. These structures belong to 8 households and 60 industrial trees belong to 2 households. Table 3 Compensation Offset Line of Project Lot 1 Activity Project Activities Offset Line (m) River works: Nam Kor: Dike, Bank protection, 1.5 to 13 Riverside Park 2 located near the new stadium. 15 to 16 Riverside Road (L=950m): Road improvement near the Riverside 14 to 17 Park 2 Nam Kor Movable Weir (1 ea): Located in Riverside Park 2 on the 10 to 13 Nam Kor river

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34. During the preparation of this ARAP1, the survey team has completed the inventory of loss (IOL) in one affected village (B. Cheng). Table 4 below summarizes the results of inventory of loss in this village. The Lot 1 activity will affect 9 households (HHs) with 5 single story houses (entirely affected), one wooden house, 2 incomplete houses (only post and basement beam), 9 secondary structures and 60 industrial trees will be affected as detailed in table 4 below. These structures are located in public land (the Provincial Stadium Land); however, compensation will be made for all affected structures (8 HHs) and affected trees (2 HHs). Please refer to Attachment 1 for IOL forms. Table 4 Summary of all Losses (private) No. Name of PAP Type of Description Unit Affected Valuation of Remarks Loss Number Building Condition (%) 1 Mr. Bounsavath Single Concrete post, m2 90 75 4 years Chanthaloun story house Tile floor, used Brick wall, Tile roof Kitchen Concrete post m2 62.5 62 4 years and floor, used Brick wall and Zinc roof 2 Ms. Soutchay House Post post 6 Vonglom structure Beam m 27 Single Concrete post, m2 16 80 1 year story house Concrete floor, used Brick wall, Tile roof Porch of Wooden m2 12 80 1 year house structure, Zinc used roof Industrial Teak tree tree 10 tree 3 Mr. Sengchanh House Post post 6 Vonglom structure Beam m 27 4 Mr. Thongvanh Single Concrete pos, m2 120 75 4 years Thaiphathep story house Wooden floor, used Brick wall, Tile roof Kitchen Wooden post, m2 15 65 4 years Concrete floor, used Wooden wall, Zinc roof 5 Mr. Somphone Single Concrete post, m2 110 80 4 years Chithakrang story house Tile floor, used Brick wall, Tile roof Kitchen Wooden post m2 18 60 4 years and floor, used Wooden wall, Zinc roof

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No. Name of PAP Type of Description Unit Affected Valuation of Remarks Loss Number Building Condition (%) Parking Wooden post, m2 21 40 4 years Zinc roof used 6 Mr. Khammanh Single Concrete post, m2 72 70 2 years Chittakrang story house Tile floor, used Brick wall, Zinc roof Kitchen Wooden post, m2 21 60 4 years Wooden floor used and wall, Zinc roof Toilet Concrete post m2 4 50 4 years and floor, used Wooden wall and Zinc roof Animal Wooden post, m2 4 30 4 years husbandry Ground floor, used Wooden wall, Zinc roof 7 Mr. Xayysan + Moveable Bamboo post m2 6 50 Ms. Khambai hut and floor, Zinc roof 8 Mr. Khamkong Wooden Wooden post m2 54 70 2 years Vongphachanh house and wall, Zinc used roof 9 Mr. Khamlar Industrial Teak tree tree 42 Inthani tree Rosewood tree 8

Sources: Field Survey, May 2020 3.4 Affected Communal Infrastructures 35. Affected Communal Infrastructures: The project will acquire approximately 3,000 m2 of provincial stadium land for development of a riverside park. Removal or relocation of 59 ashes stupa will need to consult with the temple and its owners. A proportion of the temple land (1,040 m2) in Cheng village will be acquired by the project (see table 5 and 6 below). Compensation for public utilities and infrastructure will require further consultations with relevant stakeholders. Table 5 Affected Government Land and Communal Infrastructures

No. Type of asset Unit Affected Area 1 Stadium’s land m2 3,000 2 Steel gate m2 10.8 3 Asphalt road m2 8,000 4 Fence m 1,000

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Table 6 Affected Trees in the Government Land (Stadium Land)

No. Type of Tree Unit Number Remark 1 Banana tree Tree 27 already compensated 2 Mango tree Tree 28 already compensated 3 Jack fruit tree Tree 31 already compensated 4 Longan tree Tree 27 already compensated 5 Papaya tree Tree 41 already compensated 6 Bamboo Bamboo 45 already compensated 7 Rosewood tree Tree 91 already compensated 8 Teak tree Tree 131 already compensated Total 421

3.5 Gender Considerations 36. A gender-responsive social assessment has been made during consultation of the ARAP1 and EGDP to identify potential impacts for different populations (ethnic peoples and vulnerable groups – women and female/male youth and children, the elderly and disabled, landless, and poor, etc.) in relation to their health and safety concerns. 37. Gender mainstreaming and integration has been promoted in the planning to encourage active participation of women and this will continuously be encouraged during implementation and M&E to strengthen implementation and monitoring of project activities that can be carried out by local authorities with active engagement of local communities on the use of nature-based/green infrastructure solutions and waste (solid and liquid) management to reduce pollution along the waterways. A gender specialist was mobilized while training and capacity building are being conducted since project planning throughout the project construction and operation. 4 Socio-economic Census Data of Affected Village and Households 38. The census and socioeconomic information and data collection was carried out from 24 February to 4 April 2020, using the village census survey form. Data processing and analysis were implemented by the expert team in Vientiane Capital. This Section provides census data and information of village and households to be affected from the project Lot 1 activity (US$ 4.5 million) as indicated in Section 2.2. The results of socio-economic census survey are summarized in the following sections and the data collection form is in Attachment 2. 4.1 Population and Households in the Affected Village 39. For the Project Lot 1 activity, only Cheng village will be affected. The village census survey indicates that Cheng village comprise 206 households with a total population of 1,136 people (565 females). However, only 8 households with 42 PAPs (22 female PAPs) will be affected from the Project Lot 1 activity as shown in table 7 and table 8 below.

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Table 7 Population and Households in Affected Villages

No Village Total No. of Houses Total No. of Total Female Family population 1 Cheng 206 235 1,136 565 Sources: Field Survey, March 2020 Table 8 Number of Household and Population to be affected by the Project Lot 1

No. Village Total No. of HHs Total No. of AP Female 1 Cheng 9 42 22

Sources: Household Survey, May 2020 4.2 Ethnic Groups 40. The sub-ethnic groups population in the project affected village include Lao Tai 929 (461 female), Phounoi 21 (10 female), Hor 100 (56 females) and Khmu 86 (38). The population of the villages is dominated by Lao Tai, which covers about 82% (929 people; 461 females) of the total population in Cheng village followed by Pounoi and Hor (10%) and Khmu (8%). For more information about number of ethnic groups presents in the following table 9. 41. The Lot 1 activity will affect 9 households in B. Cheng including 6 Khmu households and 3 Lao Tai households. For more information about number of ethnic groups presents in the following table 10. 42. Lao language is the main languages used by Lao Lum. It is the official langue of the country. Lao Lum lives in the lowland area of the province and believes in Buddhism. Khmu (often referred to as Lao Theung) traditionally live in the middle hill areas, are animist, tend to practice swidden agriculture, utilise forest products and are relatively isolated from the dominant lowland culture - although there has been assimilation and integration for centuries. This linguistic family includes 32 ethnic groups and related sub-groups. Their language links them to the Mon and the Khmer. Table 9 Ethnic Groups in Affected Villages

Lao Tai Phunoi Hor Khmu No. Village Population Total Female Total Female Total Female Total Female

1 Cheng 1,136 929 461 21 10 100 56 86 38 Sources: Field Survey, March 2020 Table 10 Ethnic Groups of Affected Households

No. Village Total Population Female Lao Tai group Khmu group HHs HHs Pop. Female HHs Pop. Female

1 Cheng 9 42 22 3 14 7 6 28 15 Sources: Field Survey, May 2020

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4.3 Religions 43. For the Project Lot 1 activity, only Cheng village will be affected. The primary religion in the affected villages is spirit practiced by about 62% (148 families) and the remaining villagers believe in Buddhism (87 families). Out of the households in Cheng Village affected by Lot 1, only 9 households with 14 PAPs practice Buddhism and 28 PAPs are animists with different traditional ceremonies to worship their ancestors. Please see table 11 and table 12 below for more information. Table 11 Religions in Affected Villages

No Village No. of Family Buddhism Spirit 1 Cheng 235 87 148 Sources: Field Survey, March 2020 44. Majority of affected households in B. Cheng believe in spirit with different traditional ceremonies to worship their ancestors. Table 12 Religions in the Affected Households

No. Village Affected HH Affected People Buddhism Spirit 1 Cheng 9 42 14 28

4.4 Infrastructures and Facilities 45. Data on key infrastructure for village economy, trade, education, health and transport was collected during the village surveys including availability of market, shops, companies, hotels/guesthouses, cars, trucks, rice mills, factories and industries, water supply, etc. For the Project Lot 1 activity, only Cheng village will be affected. The village census survey indicates that Cheng village has relatively good infrastructure, public utilities and services including 1 company, 1 factory, 3 hotels/guesthouses, more than 70 cars/pick-up trucks and 43 smaller shops. Please see table 14 and table 15 below for more information. Table 13 Abbreviations of Infrastructure and Facilities in the Villages Type of infrastructure and facilities Abbreviations Unit ວິດຖ່າຍ (Latrine) L HH ຕະຫຼາດຂອງບ້ານ (Market) M Number ບໍລິສັດ ແລະ ຫ້າງຮ້ານຂະໜາດໃຫຍ່ (Big Company) BC Number ຮາ້ ນຂາຍເຄ່ ອ ງຍ່ ອຍ (small shop) SS Number ໂຮງແຮມ ແລະ ບ້ານພັກ (Hotel and Guesthouse) HG Number ເສນັ້ ທາງທ່ ໃ ຊໄ້ ດທ້ ຸກໆລະດູການ (All weather land road) A-R Number ເສນັ້ ທາງເຮອ (Boat transportation) BT Number Public PB ລົດໂດຍສານປະຈໍາທາງ ແລ່ນຈາກບ້ານໄປຫາເມອງ/ແຂວງ (Public bus) transport ລດົ 4 ລໍ ້ ຫຼ 6 ລໍ ້ (Pick-up and Truck) P-T Car

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Type of infrastructure and facilities Abbreviations Unit ລົດໄຖນາເດນຕາມ (Tractor) T Tractor ໂຮງສເ ຂາົ້ (Rice mill) RM Number ຈາໍ ນວນຫຼງັ ຄາເຮອ ນທ່ ໃ ຊໄ້ ຟຟາ້ (Electricity Household) EH HH ໂຮງຈກັ ໂຮງງານທ່ ມ ຢ ່ ູພາຍໃນບາ້ ນ (Industrial factory) ID Number ນໍາ້ ສາ້ ງ (water well) WW Well ນໍາ້ ບາດານ (Drilled bore) DB HH/tap ນໍາ້ ລນິ (Gravity fed water) GW HH/tap ນໍາ້ ປະປາ (Pipe water) PW HH ຫວ້ ຍ/ແມ່ ນໍາ້ (River and lake) R-L River

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Table 14 Infrastructure and Facilities in the Affected Villages

No. of Household No. Village 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 L M BC SS HG AR WT PB PT T RM EH IF W DB GW PW RL 1 Cheng 206 0 1 43 3 5 0 0 70 11 0 206 1 0 0 0 206 1 Sources: Field Survey, March 2020

Table 15 Summary of Supporting Facilities of Affected HHs in Cheng Village

Affected Car Motor- Bicycle Fan TV Refrigerator Satellite Electric Electric Electric Sewing Water Washing Telephone HHs bike Receiver Generator Pan Stove machine supply machine 9 2 12 2 3 10 9 8 1 13 1 1 8 5 30

Sources: Household Survey, May 2020

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4.5 School Facility and Health Centers 46. There is 1 primary school, with total 5 classrooms, and oversight by 6 teachers. The total number of secondary school and high school together is 1 school, 3 classrooms and 27 teachers are available to provide the service to the public. However, those schools are not affected in term of land requisition. Table 16 provides statistics on the current school infrastructure in the project village. 47. There is no health center located in the affected village. However, they still can access to the district and provincial health center and hospital. The distance is about 500 meters to 1 kilometer far from village. See the table 17 below for more information. Table 16 Number of School and Health Center in the Affected Villages

No. Village No. of Primary School No. of Secondary/High Remark) school School Class Teacher School Class Teacher

[1] room [3] room

[2] [4] 1 Cheng 1 5 6 1 3 27 Buddha hight School

Sources: Field Survey, March 2020 Table 17 Distances from Each Village to School and Health Center/Hospitals

School Hospital Secondary No. Village Primary and District Province School High school

1 Cheng 500 m 1 km

Sources: Field Survey, March 2020 4.6 Education 48. It is noticed that number of students’ enrolment at high school level is relatively high. This represents number of youths is high in the affected villages. It is also noticed that current number of students at higher diploma and bachelor’s degrees are also high. There is no uneducated person in Cheng Village. Table 18 outlines education statistics in project villages. Table 18 Level of Education in the Affected Villages

No. Village Primary school Lower High school Higher Bachelor secondary degree diploma degree and school beyond Total Female Total Female Total Female Total Female Total Female

1 Cheng 102 50 215 100 80 20 170 60 20 8

Sources: Field Survey, March 2020

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4.7 Disease and Treatment Practices 49. According to the field survey, there is no malnutrition issue or epidemic disease in the last two years. When people feel sick, they use services from the public hospital and health center nearby. Some of them may buy medicine from a clinic or pharmacy to treat their illness. The current situation of COVID-19 pandemic has impacted the socio-economic conditions as a whole. There is no case of Corona virus infection in Oudomxay Province. The province health authorities as well as the provincial authorities from other sectors have implemented the mitigation measures based on the relevant Prime Minister Instructions and Orders such as PM Order No.06. 4.8 Employments and Incomes 50. Occupations of affected people in the Cheng village includes government officials (including teachers, soldiers, general public services in provincial and district government departments represent approximately 26% of total affected people) and other of this population is currently engaged in private sector employment, family business and students 51. For the Project Lot 1 activity, only Cheng Village will be affected. The village census survey indicates that the affected village has different sources of income including agriculture (25 families), business and services (138 families), general employment (180 families) and government employment (45 families). However, the main income of the 8 affected households in Cheng Village is from government employment. 4.9 Labour Migration 52. For the Project Lot 1 activity, only Cheng Village will be affected. The village census survey indicates that the affected village has different sources of income including agriculture (25 families), business and services (138 families), general employment (180 families) and government employment (45 families). However, the main income of the 9 affected households in Cheng Village is from government employment. 4.10 Land Use 53. Based on the results from the field survey, land use in the project area in each village use land for different purposes and under 3 main categories as follows: a) residential land (structures, private, community and public infrastructure and utilities, home garden), b) Agricultural Land (rice paddy, upland rice paddy, industrial tree plantation, fish pond, other agriculture activities, and c) Forest land (village production forest land, spiritual land/graves. 54. In Cheng village, the village to be affected by the Project Lot 1 activity, the residential land is about 40 ha; agricultural land is about 2ha and cemetery 1 ha. However, the 9 PAHs built their houses and planted the industrial trees in public land (Provincial Stadium Land). Therefore, only affected structures and industrial trees will be compensated. Please see table 19 and table 20 for more details. Table 19 Agriculture Land in Affected Villages

No. Village Type No. of family Area (Ha) Total product of Sell (Kg) last year/Kg 1 Cheng Paddy field 10 2 2.5T/Ha 5,000

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Sources: Field Survey, March 2020 Table 20 Land Use in the Affected Villages

No. Village Total area of Residential Agricultural Cemetery village (Ha) land (Ha) Land (Ha) (Ha)

1 Cheng 53 40 2 1 Sources: Field Survey, March 2020 4.11 Cultural and Historical Infrastructure 55. The survey collected information on what kind of cultural and archaeological heritage, pre- historic remains, and historic sites that could be affected by the project. The following lists of cultural and archaeological heritage significance were identified in the project villages. For the Project Lot 1 activity, only Cheng village will be affected by the project; however, the temple and cemetery will not be affected by the Project Lot 1 activity. During the consultation, affected villagers indicated that in case the project will be affect the cemetery, they request the project to closely coordinate with local authorities and older people in the community to conduct proper customary practice to ask for permission and apologize the spiritual ancestors in order to move them to new place, and compensation should be made to the affected people as well. There is no any culturally significant heritage to be affected by the project Lot 1 activity. 4.12 UXO Risk 56. An unexploded ordinance (UXO) is military ammunition or explosive device which has failed to function as intended when initially deployed. Lao PDR is, per capita, the most heavily bombed country in the world and despite clearing efforts, UXO is still present in much of the country, with approximately 25% of Lao PDR’s10,000 plus villages being UXO contaminated. The Lao National Regulatory Authority (NRA) estimates there are 80 million UXO scattered throughout the country, the majority of which are cluster munitions. Much of the data on UXO in the country is supplied by the US military. However, these data are not comprehensive, and bombing undertaken by the Thai and Lao governments has not been fully documented or mapped. 57. Lao PDR has high risk due to unexploded ordnance (UXO). However, for Muang Xay City, compared to other areas of Lao PDR, or other districts within Oudomxay Province, there is a low risk of encountering any UXO, particularly in the proposed subproject sites. However, ODX of DPWT should be required to discuss with the responsible agencies and local authorities and provide confirmation on the UXO safety and/or the required actions to ensure UXO safety of any sites where major construction activities are planned. A survey and risk assessment for UXO in the construction area will need to be carried out as part of the project preparation. If the report identifies that there is a risk of encountering UXOs, the construction contractor should prepare an UXO Survey and Clearance Plan and implement this plan for relevant sub-project construction sites. The plan should include: (i) detailed procedures for identifying, securing and disposing of UXOs; and (ii) clear instruction to all staff on how to behave if an UXO is found. 58. The National UXO/Mine Action Standards (2012) provides the minimum standards and requirements for all UXO/mine action conducted in Lao PDR. The purpose of this standard is to

Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 21/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province ensure safety, efficiency and effectiveness in UXO/mine action. It applies to all organizations to use this standard as the basis for the development of their projects and standard operating procedures. In late 2016, GOL also issued an order requiring all investment projects to take actions to reduce UXO risk before commencing the project activities. The Project may require to consult with the NRA for conducting UXO risk assessment in the project area. If the project development areas are identified as low priority/low UXO impact threat, the project would not undertake area clearance. However, if the initial assessment identifies medium to high risks, the project will need to involve a certified UXO clearance organization before land use and land preparation for construction of new houses and agriculture production. 4.13 Poverty Groups 59. The Guideline number 0830/MAF, dated 06/04/2018 on guideline for implementation the decree 384, 2017 sets the Criteria for Poverty Graduation and Development. Section 4 of this guideline indicates that families that graduate from poverty are the families that have achieved six criteria for graduation of families’ from poverty defined in the Decree 348/GOL, but still do not have stabilization, and are vulnerable with risk to fall back into poverty as they have not yet achieved the majority of criteria for developed families such as: political aspects, education, cultural, environmental, and national defense-peace keeping. Importantly, although members of a family have occupations, they remain at subsistence income. They do not have savings to ensure economic stability of their families. Average income per person should be not less than 5.6 million kip or USD700 per person per year. However, based on the field survey results, considering the criteria set above, there is no poor family in Cheng village and household to be affected by the Project Lot 1 activity. 4.14 Vulnerability Groups (VG) 60. As per the given definition above, vulnerable groups are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) households headed by women, the elderly people or people with disability and households with no labors, (ii) households living below the poverty threshold, (iii) the landless, and (iv) ethnic groups. Based on the field survey, there are no vulnerability groups in the project area. There is no vulnerable group in Cheng village and no vulnerable household to be affected by the Project Lot 1 activity. 5 Legal Framework 5.1 Objectives of Compensation Policy 61. The main objective of compensation policy under this ARAP1 is to ensure that all persons subjected to adverse impacts (displaced persons or PAPs) are compensated at replacement cost for loss of land and other assets and otherwise provided with any rehabilitation measures or other forms of assistance necessary to provide them with sufficient opportunity to improve, or at least restore, their incomes and living standards. Given the nature of the project activities, the project area will need land acquisition and/or compensation. The compensation and resettlement relevant policies of the World Bank and GOL will be applied to address temporary impacts and RAP or ARAP1 will be prepared and implemented in accordance with the policies.

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5.2 Policy, Legal, and Institutional Settings for Compensation 5.2.1 National Legal and Regulatory Framework 62. Severe environmental and social impacts are anticipated as the ODX project will require acquisition of land either on a temporary or permanent basis and PAP and PAH living in the areas identified for the construction of two riverside park(s), major impacts due to resettlement and/or the loss of riverine land is required. Subsequent feasibility and design studies were guided by the World Bank safeguards documents prepared in line with applicable national laws and the World Bank’s Operational Policies on Involuntary Resettlement. 63. Lao PDR has several laws and regulations governing the utilization and environmental and social impact management of natural resources (i.e., land, forest, water, aquatic and wildlife, etc.). First promulgated in 1999, the Environmental Protection Law (EPL) was revised in 2012 and describes the principles, regulations and measures for managing, monitoring, restoring and protecting the environment including pollution control and impact assessment processes. Additionally, a number of decrees, regulations and guidelines were established during the past decade. This includes Decree 021 on Environmental Impact Assessment (EIA), in 2019, Decree 84 on Compensation and Resettlement in 2016. The EPL assigns the Ministry of Natural Resources and Environment (MONRE) to be the lead ministry responsible for establishment and ensure effective implementation of follow-up regulations and guidelines as needed. MONRE is responsible for review of an Environmental Impact Assessment (EIA) and issuance of an Environmental Compliance Certificate (ECC) while the Provincial Office on Natural Resources and Environment (PONRE) is responsible for review of an Initial Environmental Evaluation (IEE) process and issuance of the ECC. In late 2017, as part of MONRE internal organization, the Department of Environment and Social Impact Assessment (DESIA) has been separated into the Department of Natural Resources and Environment (DNEP) responsible for ESIA review and the Natural Resources and Environmental Inspection Office (NEIO) responsible for technical inspection of compliance. In March 2020, MONRE has reformed the internal organization and the Department of Environment (DOE) is responsible for EIA review and approval. 64. The MONRE Ministerial Agreement (No. 8056/MONRE) provides a list of investment policies and activities which require an IEE or, as necessary, an ESIA. Following agreement with the WB on the proposed project Component 1 urban flood risk management infrastructure design and feasibility study, DOW will conduct sub-project screening based on the aforementioned decree to determine if the project should be guided by an IEE or ESIA. Reporting requirements for Component 2 of the project are not readily defined in the Ministerial Agreement (No. 8056/MONRE) and therefore would need to be reviewed with MONRE once the scale of the works is known. An IEE typically includes studying, surveying, researching and analyzing data to estimate potential positive and adverse environmental and social impacts, including impacts on health, that may arise from investment projects listed in Group 1 of the MONRE Ministerial Agreement No. 8056/MONRE and includes identifying measures to prevent and mitigate possible environmental and social impacts. An ESIA, required for investment projects listed in Group 2 of the Lao PDR Ministerial Agreement No. 8056/MONRE, includes the aspects listed for an IEE but may also include appropriate alternatives and environmental and social management plans

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(ESMMPs) to prevent or mitigate potential impacts that may occur during all phases of an investment project. 65. As the proposed ODX project is anticipated to have a linear length greater than 1km and is comprised of several sub-projects, remark 1 of the Ministerial Agreement (No. 8056/MONRE) has been considered during the initial discussion with MONRE on scope of the assessment and the reporting requirements. An Environmental Impact Assessment (ESIA) covering all activities of the ODX project will be required. These supporting standalone documents would normally include, at a minimum, an Environmental and Social Management and Monitoring Plan (ESMP), and other safeguard documents to be required by the project such as the Abbreviated Resettlement Action Plan (ARAP1), and the Ethnic Group Engagement Plan (EGEP) being prepared and approved by the WB as well as other safeguards plans and procedures. Additionally, the Remark 4 of the Ministerial Decision (No. 8056/MONRE) stipulates that if the investment project [likely] requires compensation and resettlement according to the Decree on Compensation and Resettlement (No. 84/GOL, 2016), an EIA is required regardless of the project type or size. 66. The key Lao PDR legislation and policies relevant to the environmental and social management of the project include: 1) Constitution of the Lao People’s Democratic Republic (1991, amended 2003 and 2015); 2) Environmental Protection Law (EPL, 2012); 3) Environmental Impact Assessment Decree (No 21, January 31, 2019 4) Public Involvement Guideline (2012); 5) Decree on Compensation and Resettlement of People Affected by Government Projects (No. 84/GOL, 5 April 2016); and 6) Land Law (2003) with the revised version expected to be approved in late 2019. 7) Resettlement and Occupation Law (2018) 8) Labour Protection Law (revised, 2013) 67. EIA/IEE Process including Compensation and Resettlement includes: • Decree on Environmental Impact Assessment (EIA), No. 21/GOL, dated 31 January 2019. This revised Decree provides rules, regulations and measures on management and monitoring implementation of environmental impact assessment activities to make sure that such activities are proceeded correctly with transparency and in concerted form with purpose to protect [environment], mitigate [and] remedy impacts on environment, ensuring that the compensation is reasonable, relocation and occupational resumption and restoration of livelihood of the affected people is improved more than before, making management and use of the natural resources is efficient, securing the rights and interests of the nation and the people, contributing to the implementation of the National Social and Economic Development Plan in the direction of green and sustainability; • Decree on Compensation and Resettlement of People Affected by Development Projects (No. 84/GOL, 5 April 2016). This revised Compensation and Resettlement (C&R) decree describes the principles, regulations and standards to mitigate adverse social impacts and to compensate for damages that result from involuntary land acquisition or Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 24/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province

repossession of land and fixed or movable assets; including changes in land use, restriction of access to community or natural resources affecting community livelihood and income sources. The decree aims to ensure that project affected people (PAP) are compensated and assisted to improve or, at least, maintain their pre-project incomes and living standards, and are not made worse off than they would have been without the project. The decree describes the stringent compensation principles, particularly for those PAPs who do not have legal land title, land use certificate or other acceptable documentation indicating their land use right. Unlike the previous Decree (No. 192, 2005) which gave the right to this group of PAP to claim compensation not only for their lost assets but also for their lost rights and/or privileges to use of the land, the revised Decree only provides the right to claim for their lost assets such as house/structures, trees and/or crops. It is noted that the Decree (84/PM) is largely consistent with the main principles of the Bank’s Involuntary Resettlement Policy (OP/BP 4.12) which are discussed in the LDRM-AF ESMF. Any discrepancies that may be found in the provisions of the revised C&R Decree and the WB OP/BP 4.12 safeguards policy shall be governed by the WB policy. • Law on Resettlement and Occupation (2018) applies for both government and private sector development projects. This law aims to define, regulate, manage and monitor resettlement and livelihood for Lao population of all ethnic groups to ensure that those who are in areas identified for resettlement and livelihood are provided with stabilized residential and production land and occupation with ultimate goals to address illegal relocation, eliminate poverty, improve livelihood, security and social order, develop small villages into rural small towns contributing to national socio-economic development and national security. Article 22.1also states that people affected by settlement and livelihood program (governed under this law) will be provided with compensation for land and assets lost at a replacement cost, providing that she/he has official land (use or title) documents. The Article 22.4 recognizes customary land use that if certified by the local authority and concerned sector, the affected person is eligible for compensation as specified in the above Article. Article 22.5 discusses that in event if person affected by settlement and livelihood program does not have official land (use or title) document, she/he will not be provided with compensation for the land lost (acquired) but assets (structures, trees and crops) located on the land parcel acquired. 5.2.2 World Bank Policy on Involuntary Resettlement (OP/BP 4.12) 68. The World Bank states that economic development requires, to varying degrees, providing infrastructure and facilities that improve livelihoods and well-being through the expansion of economic opportunities. WBG investment projects must pass the litmus test of its own environment and social safeguards polices and the borrower country for a sub-project to receive funding. These safeguards policies help decision-makers to identify, prevent (avoid), minimize or mitigate harms to people and their environment. The World Bank safeguards policies also require borrower governments (GOL) to address specific environmental and social risks as a prerequisite to obtaining WBG financing for development projects.

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69. The project is characterized by a number of the proposed sub-projects with little or no detail of the final short list of urban flood risk management infrastructure sub-project investments. The ESMF provides an overarching safeguards document governing the approach, processes and specific instruments to guide and inform the Environmental and Social Management Plan (ESMP), RAP/ARAP1 and Ethnic Group Engagement Plan (EGEP), and other safeguard instruments and measures (if applicable) during ODX project infrastructure investment feasibility and design studies. 70. The OP/BP 4.12 is triggered for this Project. It requires that all investments and activities financed under the Project comply with the policy whether or not they are directly funded in whole or in part by the World Bank funds. The OP/BP 4.12 provides essential guidance on objectives and principles that are applicable in projects generating land acquisition and resettlement-related impacts. Key objectives and definitions are as follows: a) Every reasonable effort will be made to avoid or minimize the need for “land acquisition”, and to minimize all resettlement-related adverse impacts. If land acquisition and associated adverse impacts cannot be avoided, the principle objective of the RPF is to ensure that all persons subjected to adverse impacts (“displaced persons”) are compensated at “replacement cost” for lost land and other assets and otherwise provided with any “rehabilitation” measures or other forms of assistance necessary to provide them with sufficient opportunity to improve, or at least restore, their incomes and living standards. b) The definitions on “displaced persons”, “replacement cost”, “land acquisition”, “rehabilitation”, and “cut-off-date” provided in this report will be used. 71. The WB policy on Public Consultation and Information Disclosure (OP/BP 17.50), which defines the Bank’s requirements for giving the public access to project information and documentation, will also apply. 5.2.3 Key Differences in Lao PDR Law and World Bank Policies on Involuntary Resettlement 72. The recently revised (2016) Decree on Compensation and Resettlement of People Affected by Development Projects provides the principles, mechanisms and procedures to mitigate adverse social impacts and to compensate damages that result from involuntary land acquisition or repossession of land and fixed or movable assets. The Compensation and Resettlement (C&R) decree aims to ensure that PAP and PAH are compensated and assisted to improve or maintain their pre-project incomes and standard of living, and are not made worse off than they would have been without the project. The Decree (No. 84/GOL, 2016) is largely consistent with the main principles of the World Bank’s Involuntary Resettlement policy (OP/BP 4.12). Table 21 below provides a gap analysis between the World Bank policy on Involuntary Resettlement (OP/BP 4.12) with the Lao PDR 2016 Decree (No. 84/GOL). The Project will follow the World Bank OP 4.12 where discrepancies are identified.

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Table 21 Gap analysis between the World Bank Involuntary Resettlement Policy (OP/BP 4.12) and Lao PDR 2016 Decree on Compensation and Resettlement of People Affected by Development Projects

Subjects OP 4.12 Compensation and Gap/Project Measures Resettlement Decree No. 84/GOL (2016) 1. Land Property 1.1. Policy PAPs (Project • PAPs are compensated and OP 4.12 Policy Procedures objectives Affected Persons) assisted to improve or will be applied - cash should be assisted maintain their pre-project compensation at replacement in their efforts to incomes and living cost for land and structures improve their standards and are not made will be paid without deduction livelihoods and worse off than they would for depreciation or standards of have been without the salvageable materials. living or at least project. Also – income additional to restore them, in payments will be made to real terms, to pre- restore incomes, crops, trees displacement as well as moving costs. levels or to levels prevailing prior to the beginning of project implementation, whichever is higher 1.2. Support Financial • PAP who do not have legal PAPs who do not have legal for affected assistance to all land title, land use title, land use certificates or households project affected certificate or other other acceptable who have no persons to acceptable documentation documentation indicating recognizable achieve the policy indicating their land use their land use right will still be legal right or objective (to right, including customary entitled to Financial claim to the improve their and traditional land use assistance to achieve the land they are livelihoods and right, only provides the objective of the involuntary occupying standards of right to claim compensation resettlement policy (to living or at least for their lost assets such as improve their livelihoods and to restore them, in house/structures, trees standards of living or at least real terms, to pre- and/or crops, and not land. to restore them, in real terms, displacement to pre-displacement levels or levels or to levels to levels prevailing prior to prevailing prior the beginning of project to the beginning implementation, whichever is of project higher) implementation, whichever is Vulnerable PAPs will receive higher) special assistance.

OP 4.12 Policy Procedures will be applied. 1.3. Compensation at • PAP who do not have legal Compensation at full Compensation full cost for all land title, land use replacement cost will be given for illegal structures certificate or other for all structures affected, structures regardless of acceptable documentation regardless of legal status of legal status of the indicating their land use the land and structure. PAP’s land and right, including customary structure. and traditional land use Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 27/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province

Subjects OP 4.12 Compensation and Gap/Project Measures Resettlement Decree No. 84/GOL (2016) right, only provides the Provide moving allowance right to claim compensation based on structure types. for their lost assets such as house/structures, trees OP 4.12 Policy Procedures and/or crops, and not land. will be applied.

2. Compensation 2.1. Methods Compensation for Article 2: Independent appraiser for lost land and • The compensation shall be conducts replacement cost determining other assets in the form of land, material study for all types of assets compensation should be paid at or money for the land, affected in order to establish rates full replacement agricultural products, compensation, which are costs, livestock and incomes that appraised by IRC/GDR to are affect by development ensure full replacement costs. projects based on compensation value. OP 4.12 Policy Procedures will be applied Article 4 • Compensation value means the value calculated in the form of material, money or land, constructed facilities, agricultural products, livestock and incomes which have been affected by development projects.

Article 9 • Project owners, in collaboration with the committee for compensation and resettlement at the local level, must estimate the value for compensation for land, constructed facilities, crop products, livestock and potential incomes and organize consultations with affected people by selecting the right and appropriate options based on prices applied by the state, market prices or average prices applicable for period of compensation and based on the types of properties and locations. • The prices applied by the state (middle prices) are the prices specified in a separate regulation which Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 28/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province

Subjects OP 4.12 Compensation and Gap/Project Measures Resettlement Decree No. 84/GOL (2016) are identified and regulated by the Ministry of Natural Resources and Environment from time to time.

2.2. Loss of income Article 9 OP 4.12 Policy Procedures Compensation sources should be • Provision of agriculture will be applied – loss of for loss of compensated land in appropriate ways income will be restored to pre- income (whether or not including the creation of displacement rates regardless sources or the affected new livelihood options and of the legal status of the means of persons must stable income generation affected person livelihood move to another activities and promotion of location) local crafts/industry in addition to agricultural production activities for the affected people.

2.4. Provision of Article 13: Because the impacts are Livelihood livelihood • In parallel with the expected to be minor, income restoration restoration and establishment of restoration will be addressed and assistance to resettlement plan as on a case by case basis, with assistance achieve the policy prescribed in article 10 of additional payments being objectives. this decree, the project made to restore incomes and owner must coordinate with livelihoods to pre- the compensation and displacement rates. settlement committee at the local level to collect information on livelihood and income generation matters of the affected people in details to establish the livelihood rehabilitation plan to contribute to the management and monitoring social and environmental impacts within the project development framework.

2.5. Participation in Article 5: Extensive consultation and Consultation planning and • The compensation and participation will be and implementation, resettlement shall be carried conducted at every stage of disclosure specially out in compliance with the RAP planning and confirming the following principles: implementation. eligibility criteria • Protection of the rights and for compensation legitimate benefits of OP 4.12 Policy Procedures and assistance, affected people; will be applied. and access to • Ensure equality, Grievances correctness, transparency, Redress disclosure and fairness; Mechanisms • Ensure coordination, consultation and Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 29/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province

Subjects OP 4.12 Compensation and Gap/Project Measures Resettlement Decree No. 84/GOL (2016) participation between the project owner, affected people, state agencies and other relevant stakeholders.

3. Grievance Redress Mechanism Procedures Grievance Article 23: Grievances from PAP and for recording redress • In case the affected view PAHs in connection with the and mechanism that the project owner does implementation of the RP will processing should be under not comply with the plan for be handled through grievances Government compensation, resettlement negotiation with the aim of Officials and rehabilitation of achieving consensus. Responsibilities people’s livelihood in Complaints will go through for handling accordance with this decree three stages before they may grievances with or other related plans that be elevated to a court of law clear procedures affect their interests, they as a last resort. for recording and are entitled to request to processing related authorities to solve grievances the request(s) according to the procedures stipulated in paragraph 1, article 24 of this decree.

4. Monitoring & Evaluation Internal and Article 27: The PMU in close external • The project owner must set coordination with GDR-IRC independent up a management unit of will conduct internal monitoring are compensation and monitoring on resettlement required resettlement to take charge implementation. The of monitoring and monitoring will include examination by himself progress reports, status of the other than other parties. The RP implementation, unit is obliged to make information on location and reports to the state audit- numbers of people affected, inspection organizations compensation amounts paid concerning the monitoring by item, and assistance and examination of the provided to PAHs. The report implementation of the plan of monitoring results will be for compensation, prepared by MRD and allocation and relocation, submitted to IRC and WB on and rehabilitation of a quarterly basis. people’s livelihood of the development project as stipulated in the overall plan, at each period.

73. Certain principles must be supported to address gaps in existing Lao PDR legal provisions. The RPF is based on a philosophy that the project must serve the needs of society and ensure PAP and PAH are at least as well off due to sub-project implementation as they were prior to

Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 30/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province commencement of proposed urban flood risk management infrastructure investment. This can be ensured through the following objectives: 1) Avoid involuntary resettlement where feasible and minimize resettlement where population displacement is unavoidable; 2) Ensure that displaced people receive compensation, assistance and livelihood restoration so that they would be at least as well off as they would without the project; 3) PAP and PAH will benefit from the sub-projects; 4) Project stakeholders (including PAP and PAH) are consulted and given the opportunity to participate (as practical) in the design, implementation and operation of the sub-projects; 5) Appropriate assistance and compensation (cash or in-kind) is provided to adversely impacted PAP and PAH, and different populations who may have usage or customary right to the land or other resources taken for sub-projects. 6 Institutional Framework 74. The PMU-MPWT DOW has the lead responsibility for the ODX projects and implementation of the ARAP1. The MPWT DOW in association with the Provincial Department of PWT Waterway Sector Project Implementation Unit (PIU) in the provinces of Oudomxay and PTRI/EDPD has developed ARAP1 according to the policies and procedures articulated in the RPF, relevant Lao PDR national laws and decrees, and the World Bank safeguards policy (OP/BP 4.12). In addition to MPWT DOW, a number of other government departments will play instrumental roles in the design, construction and operation of the project. Pursuant to the active legislation, MONRE is responsible for environmental issues. MPI is responsible for legal matters regarding land ownership and expropriation. 75. The PMU-MPWT DOW with the technical assistance and support from EDPD/PTRI are responsible for supervising and providing implementation support for safeguards, including the ARAP1. Compensation will be reviewed and managed or monitored by the Provincial and District Resettlement Committees, which will be established in accordance to the Decree 84, 2016 on compensation and resettlement. Village Resettlement Sub-committees (VRS) will also be established as needed in villages where land acquisition and resettlement will occur, and the VRS will facilitate compensation and consultation with the project affected people and their households and manage the grievance redress mechanism at the village level. The VRS will be established within villages where land acquisition and resettlement impact exist. 76. It is incumbent upon the PMU to assist in the formation of the resettlement committees and provide training and capacity development in relation to the compensation entitlements and ARAP1. The PMU with the support from EDPD/PTRI will have a supervisory role and will ensure that provisions contained in the ARAP1 are implemented, monitored and reported. 77. The PMU-MPWT DOW will be responsible for the organizational arrangements associated with implementing and delivery of entitlements relevant to mitigating adverse impacts and compensation. The process for implementing the mitigation measures should include:

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▪ Determine if land acquisition and loss of other assets will occur or voluntary land donation or relocation is required (a census and detailed socio-economic surveys need to be conducted on PAP within the RoI after confirmation of sub-projects’ footprint); ▪ Develop a detailed list of all PAP and PAH in the RoI; ▪ Determine what each PAP and PAH would lose in terms of livelihoods and assets (land, crops, trees); ▪ Determine what the timeframe is for compensation, if any; ▪ Development of a ARAP/RAP and submission to the World Bank for “no objection” to proceed; ▪ Provide compensation in-kind or cash, if applicable; and ▪ Determine what the preferred compensation is, ensuring a participatory process.

78. MPWT DOW with assistance from PTRI/EDPD would be responsible for public consultation and public disclosure of information to national and sub-national government, stakeholders and civil society organizations (Non-Profit Associations, Community Based Organizations (CBO), communities, and PAP and PAH. Consultations and community participation would be conducted throughout the sub-projects’ planning process, design and implementation stages. Planning and acquisition of land and other assets from PAP and PAH will follow a free, prior and informed consultation process and be well documented. PAP and PAH will receive prior information regarding the form of compensation (if applicable), relocation and other assistance available to them, including: • Relevant details about the ODX project; • ARAP1 and various degrees of ODX project impact; • Details of entitlements under the ARAP1 and PAP and PAH requirements for accessing entitlements; • Compensation process and rates; • Relocation and resettlement site development consultations to obtain agreement through free, prior and informed consultation and support of PAP and PAH from participation in the consultations; • Implementation schedule with timetable for delivery of entitlements; and • Information concerning grievance redress mechanisms and how to utilize them.

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7 Resettlement Strategy and Eligibility 79. This section provides the compensation, resettlement and livelihood restoration strategy that will be applied for different categories of impacts and PAPs associated with land acquisition for the Project. The strategy considers national laws and regulations, and international standards for formal and informal land tenure.

7.1 Key Principles 80. Most aspects of the World Bank Involuntary Resettlement Policy (OP/BP 4.12) are largely addressed in Lao PDR law. The overarching objective of the project in relation to land and asset acquisition is to assist the PAP and PAH to restore their livelihoods, at least, to the level equal to their pre-project level. Specific principles that apply include: 1) Urban flood risk management infrastructure investments should avoid residential areas wherever possible to minimize the physical relocation of PAP and PAH, and select the infrastructure footprint that minimizes acquisition of privately or publicly held productive land; 2) Ensure design standards minimize the need to impose land use restrictions on adjoining areas; 3) Develop fair and transparent procedures, as defined in the Entitlement Matrix of this RPF to determine compensation for (i) temporary loss of land and/or assets during riverbank protection, construction and reparation works; (ii) permanent acquisition of land and/or assets; and (iii) restrictions on use of land that may be applied to areas adjoining the sub- projects’ river conservation zone footprint and RoI; 4) Acquire land (or right to use land) through negotiated agreements and with the use of the power of eminent domain only as a last resort; 5) Upon completion of the urban flood risk management infrastructure riverbank protection, construction and reparation works, restore land as best as possible to its original condition in the event of temporary disruption to enable landowners/users/lessees to resume their pre-sub-project activities; 6) Keep PAP and PAH, and communities fully informed about the sub-projects, the process that will be followed to acquire and compensate for land, and their related rights and avenues for redress; 7) Ensure that aggrieved PAP and PAH will have redress and recourse options and that solutions are in line with principles stipulated in this RPF and, more importantly, are employed; 8) All PAP and PAH, without regard to legal status of property, will receive support of various kinds, as per the principles set out in the Entitlement Matrix, to assist them in their efforts to maintain their livelihoods and well-being prevailing prior to the project. PAP and PAH who may have adverse possession of land (i.e., squatters) may not be compensated for loss of land but can receive compensation for loss of other assets which had been established with their own finances, and for loss of income such that they

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assisted in their efforts to maintain their livelihoods and well-being. Detailed measures to be implemented will be determined based on a RoI census and socio-economic baseline survey conducted when the ARAP1 is developed; 9) PAP and PAH will be notified of the project implementation schedule and consulted regarding the principles of land acquisition and loss of, or damage, to assets; and 10) Damages to assets, such as standing crops, trees, fences and kiosks, and loss of income (including loss of harvest) will be minimized, however inevitable, and will be compensated without regard to legal status of ownership according to the Entitlement Matrix illustrated in this report.

7.1.1 Cash Compensation Approach 81. The urban context of much of the project area combined with its linear nature and limited availability of vacant land of reasonable proximity and / or quality to the land that will be acquired for the Project, means that cash compensation is an appropriate approach. Based on socioeconomic and land use surveys conducted in Project Affected Villages, this was the general preference of Affected Persons consulted over compensation in kind. Key reasons why this approach is generally preferred include: • Freedom to choose a preferred new location, size and quality of the land; • Having cash compensation enables Affected Persons to buy larger and cheaper pieces of land, and build a better house elsewhere rather than having physical replacement of land equivalent to the advantage of the previous one; • Cash compensation creates opportunity to bargain for land and invest the savings in enterprise-based livelihoods; and • The amount of time required for the physical resettlement process starting with identification and preparation of new suitable land and accommodation will be lengthy and less efficient for the Affected Person and for development of the Project. 82. The cash compensation approach is consistent with the GOL policy and approach to compensation and livelihood restoration implemented for other similar projects in Lao PDR. Affected households will also be provided with an option to select like-for-like compensation e.g. land for land, in line with international standards.

7.1.2 House and Asset Relocation 83. The 8 Project Affected Households (PAHs) with affected housing structures are located in public land (the Provincial Stadium Land) and they all have residential land and house in other areas. Therefore, cash compensation will be made for their affected structures and trees with assistance from the Project on dismantlement and transportation to the new place. The cost of dismantlement and transportation is based on market estimation and provided in Table 32. Please refer to Attachment 9 Minutes of Consultation with 8 PAHs living in public land and Attachment 10 Confirmation of available Residential Land and Houses of 8 PAHs living in public land.

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7.1.3 Additional Livelihood Restoration Measures 84. The detailed approach to livelihood restoration is outlined in Section 9. The key principles of the approach of providing additional livelihood restoration measures in addition to cash compensation are:

• Eligible Affected Persons will receive compensation and livelihood rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income earning capacity and production levels. In some circumstances this will require additional measures beyond cash compensation; • Affected Persons who stand to lose part of their productive land will not be left without a means to sustain their current standard of living, for example through provision of compensation and other livelihood restoration measures; • Particular attention will be paid to the needs of the poorest Affected Persons, and socially and economically vulnerable groups. This may include those without legal title to the land or other assets, households headed by females, the elderly or disabled, and other vulnerable groups, such as people living in extreme hardship; and • For severely affected people sustainable livelihood restoration measures will be identified in consultation with Affected Persons.

7.1.4 Compensation Principles 85. Compensation for Affected Persons will be based on the following principles:

• Affected Persons who will experience impacts and losses under the Project will be entitled to adequate and prompt compensation for land and assets lost; • The Project will replace or pay compensation for assets lost as a result of displacement and in addition will:

− Provide disturbance allowances to assist Affected Persons with their relocation; − Pay an allowance for loss of income incurred because of relocation (if appropriate/required). • Cash compensation for loss of land will be based on open market value; • All community assets destroyed or whose land is required for the Project will be compensated and assistance provide for re-establishment of the assets; • For affected business, lost income will be compensated by way of a disturbance allowance, taking into account the nature of the business and transition period, and that access to similar opportunities will be facilitated through the livelihood restoration program; • Where there is loss of income due to destruction of community assets, additional compensation will be considered for damages and destruction to property; • Household with crops and gardens within the Project areas will be compensated for the loss of land and / or derived livelihood; • Lack of formal legal rights to assets lost will not deprive any Affected Person from receiving compensation and entitlements. Distinctions will not be made between Affected Persons “with” and “without” formal legal land titles; and

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• For any cultural sites such as cemeteries affected, compensation and / or relocation will be done in accordance with cultural norms and regulatory requirements with adequate compensation allocated to facilitate the process.

7.2 Compensation Categories 86. The compensation categories defined below identify the compensation scenarios that the Project and affected persons will experience:

• Permanent Loss; • Temporary Loss; and • Temporary Disturbance.

7.2.1 Permanent Loss 87. Permanent loss occurs when land and/or assets are permanently transformed from their pre-Project use. This also applies to land permanently alienated by the Project – e.g. land within the Project Development Area where, for safety reasons, residents will not be permitted to cultivate and / or use land regardless of whether it is directly affected by the Project. When permanent loss of land is less than 10% of a household’s productive assets, in-kind compensation should be the preferred compensation (from the perspective of the Project), but cash could be allowed if households prefer. When permanent loss is 10% or greater of a household’s productive assets, the land and/or asset owner should be offered in-kind compensation of land and assets of equal or greater productivity at the time that the property is appropriated by the Project. In case suitable replacement land is not available, alternative livelihood restoration strategies may need to be designed. 88. The “replacement land” will need to be sufficient to actually replace lost land and assets with land of equal productivity, or assets of equal value/quality/size. The “replacement option” should also be sufficient to incorporate transaction costs at local market value at the time of compensation (i.e. market value plus an appropriate percentage or lump sum to account for such costs and inconvenience). Provision of a “productivity allowance”, may be required, to compensate for any differences in productivity of the replacement land. The Project will also provide livelihood support to prepare the land and bring it to the level of productivity of land lost.

7.2.2 Temporary Loss 89. Temporary loss may occur when land is temporarily used for Project activities (e.g. construction area) or temporarily alienated, where the owner does not have access to the land during the period it is utilized for the Project. Land and/or assets should be returned to the affected household as close to their original condition as possible or as agreed by both parties. 90. In such instances, landowners (including village administration and custom owners) are offered a “rental (or subsistence) allowance” for the period of loss sufficient to cover the economic / livelihood loss incurred by the temporary loss of access to this land. The “rental allowance” is equivalent to the lost productive value of the land at the local market value for the year in which the loss occurred. 91. At the end of the “rental period” the productivity of the land is assessed against the productivity prior to the “rental period”. If the productivity of the land has not been adversely

Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 36/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province impacted the land will be returned to the Landowner. However, if the land has been adversely impacted, landowners can be offered either: a. In-kind compensation in the form of replacement land (hectare for hectare, quality for quality) of equal productivity; or b. Assistance to restore the productivity of the land. 92. Temporary Loss entitlements are discussed in further detail in the Entitlement Matrix (Table 22).

7.2.3 Temporary Disturbance 93. Temporary disturbance will occur in areas adjacent to Project activities, that, while the owner will still have access and use of their property, that access and use may be disturbed by Project activities (e.g. land disturbed for temporary construction access road). Depending on the severity of disturbance, the landowner may be offered a “disturbance allowance” for the period of disturbance. The “disturbance allowance” would be sufficient to cover the economic loss incurred by the disturbance. 94. At the end of the “disturbance” period, the productive value of the land (or other livelihood stream) should be assessed against the value prior to the “disturbance” period. If the land (or other livelihood stream) has been adversely impacted, landowners will be offered: a. Replacement land or compensation for productivity loss; or b. Assistance to restore the productivity of the land. 95. Temporary Disturbance entitlements are discussed in further detail in the Entitlement Matrix (Table 22)

7.3 Eligibility Policy

7.3.1 Categories of Displaced Persons 96. The Lao PDR sub-projects will have both positive and adverse (negative) impacts on people in Oudomxay’s provincial capital, Muang Xay, and vicinity where urban flood protection measures are under consideration. It is reasonable to presume that households, commercial enterprises and public infrastructure (e.g., schools, health clinics and hospitals, government buildings’ boundary fences) whose properties encroach the dike construction zone, drainage canal and floodgates, weir and riverside parks will potentially be affected adversely, if only in a minor way. 97. Although all project activities have the potential to affect all categories of people in the respective RoI locations (whether categorized by race, religion, ethnicity, gender, age, economic status, land tenure or other), only activities that require relocation either on a temporary or permanent basis are considered to have the potential of causing serious displacement problems. The RPF recognizes that certain social groups may be less able to restore their living conditions, livelihoods and income levels; and therefore, are 98. At greater risk of impoverishment when their land and other assets are affected. During the ARAP1/RAP social assessment, the project will identify any specific needs or concerns that should be considered for the different populations (ethnic peoples and vulnerable groups – women

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7.3.2 Displaced Persons Eligibility Criteria 99. Following Lao PDR laws and regulations on acquisition of land and, in consideration of the World Bank Involuntary Resettlement policy (OP/BP 4.12), the basic principles of land acquisition and land donation for the project include the following elements: a. Minimize negative or adverse impacts as much as possible; b. Carry out land adjustment or compensation to improve or, at least, restore the pre-project income and living standards of PAP and PAH; c. Ensure free, prior and informed consultation with PAP and PAH on land donation, land acquisition and compensation arrangements, and ensure the process is well documented; and d. Provide compensation, if applicable, for private assets at replacement rates, prior to commencement of urban flood risk management infrastructure investments. 100. Displaced persons may be classified in one of the following three groups: a. Those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); will be entitled to compensation for the land they lose, all assets affixed to the land, as well as income restoration measures; b. Those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the resettlement plan will be will be entitled to compensation for the land they lose, all assets affixed to the land, as well as income restoration measures; and c. Those who have no recognizable legal right or claim to the land they are occupying will be entitled to all assets affixed to the land, as well as income restoration measures. In cases where the remaining portion of land is no longer viable they will be entitled to a replacement plot. 101. Persons covered under a) and b) are provided compensation for the land they lose, and other assistance in accordance with Para. 6. Persons covered under c) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the sub-project area prior to a cut-off date established by the borrower and acceptable to the Bank. 102. All PAP and PAH comprised of different populations (see Entitlement Matrix) will be provided with compensation (if deemed legal owner or occupant during census), and rehabilitation and restoration if: (i) their land is acquired for project purposes (ii) their income source is directly and adversely affected; (iii) their houses are partially or fully demolished; and (iv) other assets (i.e., crops, trees and facilities) or access to these assets will be reduced or damaged due to land acquisition. Those PAPs or PAHs who have encroached upon public land will have the right to

Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 38/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province claim compensation for their lost assets such as house/structures, trees and/or crops, and will not necessarily have the right to compensation for land that they cannot establish ownership of or a right of access to.2 103. Thus, land acquisition and/or land donation and its effect on income sources either on a temporary or permanent basis will apply to all proposed sub-projects in Lao PDR under the SEA DRM Project regardless of whether they are directly funded by the World Bank or not. The policy applies to all PAP and PAH regardless of the number or the severity of the induced impact. 104. Attention is to be given to the needs of different populations (ethnic peoples and vulnerable groups – women and female/male youth and children, the elderly and disabled, landless, and poor, etc.).

7.3.3 Eligibility Cut-Off Date 105. The eligibility cut-off date should be the date of completion of the census and assets inventory of persons affected by the Project. Persons becoming part of the Project Affected Households after the cut-off date are not eligible for compensation and/or livelihood restoration assistance, unless they are a part of the natural growth of the community (i.e. marriage, birth). Similarly, fixed assets (such as built structures, crops and fruit trees) established after the date of completion of the assets inventory, or an alternative mutually agreed on date, should not be compensated, unless they are considered to be a part of the community’s natural growth. 106. ‘If adequate public notice of the cut-off date has been given, persons who settle in the project site after that date are not entitled to compensation for lost assets or any other form of resettlement assistance’ (World Bank Group’s Handbook for Preparing a Resettlement Action Plan, 2002). 107. In addition to the Letter of Cut-Off-Date issued by the Governor of Muang Xay on 6 July 2016, the DPWT of Oudomxay Province has recently issued new Cut-Off Date letter on 12 February 2020 to notify Government departments, organizations, people’s army, public security, village authorities and other line agencies within the Muang Xay City that between 2020 and 2022, the DPWT of Oudomxay Province will implement the Flood Risk Management Project (Urban Flood Protection) in Nam Kor, Nam Mao and Nam Hin Rivers (Attachment 7). The letter emphasises the project activity will require land acquisition on Nam Mao and Nam Kor Rivers, and therefore the DPWT notifies all stakeholders who are currently managing Nam Mao, Nam Hin and Nam Kor Rivers to provide cooperation and follow the notification as follows: • Do not construct any structure such as house, restaurant, services shop, animal pen/coop, riverbank protection, and other buildings on preserved areas of Nam Mao, Nam Hin and Nam Kor Rivers; • Do not excavate soil, gravel, sand, fill or cut the river channel without permission from relevant authorities;

2 Lao PDR DRM Project funds may be used to compensate for land acquired under the project as well as pay expenses such as income restoration and moving allowances for both formal and informal occupants at the impacted sites.

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• For existing houses, restaurants, shops and other buildings within riverbank areas of Nam Mao, Nam Hin and Nam Kor that have been constructed previously shall not be upgrade or extended until the project has completed the survey – design, inventory of land and assets. Buildings or structure occurred outside the project development areas can be improved but it will require obtaining permission based on relevant regulations. 108. The Governor of Oudomxay province has recently established a Provincial Resettlement Committee (PRC) (No. 039/PG.UDX, dated 09/01/2020) (please see Attachment 5). The Agreement also appointed the Committee’s Secretariat and its technical team with responsibility to conduct data collection and assessment of project impacts. The Agreement gives the authority to the DPWT to serve as the leading agency responsible for compensation and resettlement works in consultation with relevant provincial and district authorities. Therefore, the inventory of loss of land and assets of affected people, households and other public and community infrastructure has been the responsibility of the PRC and its secretariat. The consultant will work closely with the PRC to ensure the identification, assessment and valuation of land and assets are conducted in compliance with the national laws and regulation as well as applicable international standards. 109. More recently, the Provincial Governor of Oudomxay province has established an ad hoc committee (No. 518/PG.UDX, dated 20/5/2020) responsible for development of compensation rates for DRM project (please refer to Attachment 6). This committee is leading by the DPWT in cooperation with various provincial and district government agencies as well as affected communities on establishment of appropriate compensation rates that are accepted by all key stakeholders.

7.4 Entitlements 110. The Project entitlements presented in the Entitlement Matrix and summarized below will address the various types of losses that may potentially occur due to Project implementation, as identified and presented in this ARAP1. As set out above, the absence of legal or formal title to land is not a bar to compensation. Both male and female members of Project Affected Households should be equally consulted, and their rights recognized. Negotiations, compensation payments, and livelihood restoration, should be with both male and female head/s of each household. 111. The compensation measures to be provided by DOW should include in-kind compensation and/or cash for land and other structures at full replacement cost acceptable to all Project Affected Households. Specifically, the following compensation and associated provisions should be provided: • Cash compensation for agricultural land loss at equivalent at full replacement cost. The option should also be provided for agricultural land-for-land replacement of equal productive capacity acceptable to Project Affected Households; • Cash compensation for residential land and asset loss at equivalent at full replacement cost. The option should also be provided for DOW to provide replacement of residential land and assets of equal size acceptable to Project Affected Households;

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• Community land-for-land replacement of equal value acceptable to the affected people will need to be provided, or cash equivalent at full replacement cost if there is no community land available; • Cash compensation for renters, crops, trees and other productive assets lost due to the Project; • Replacement or re-installation of like for like utilities and facilities, such as wells, sanitation facilities, and road networks where these are impacted by the Project; and • Compensation for relocation of public works and other collective assets through in- kind replacement of structures to equivalent or higher standard. 112. The actual compensation entitlements should be finalized and agreed upon in consultation with the Provincial and District authorities. DOW should formalize outcomes of this consultation in a Compensation Agreement and liaise with the local authorities to determine compensation rates.

7.4.1 Rates for Compensation 113. The value of compensation for assets should be based on replacement cost, and the value of compensation for lost production should reflect estimated net income lost (i.e. with deduction of cost of production), irrespective of whether compensation is provided in cash or in-kind. 114. The Provincial Resettlement Committee (PRC) has recently established as per the Agreement of the Provincial Governor (No. 518/PG.UDX, dated 20th May 2020). The Committee was established specifically for Project to oversee the compensation activities associated with the Project. This committee will also confirm the compensation rates to be used so they are consistent for all Project Affected Households. Please refer to Attachment 3 the Decision of Provincial Governor, No. 1105/GOV.ODX, dated 15 September 2020 on the compensation unit rates. 115. Further details on the intended compensation for affected structures and industrial treesare provided in the entitlement matrix below. 116. Rates of compensation were determined based on actual value of land and assets at open market prices (please refer to Attachment 4). A summary of rates of compensation calculation principles are outlined below: • Lowland rice paddy: compensation = (loss land area x market price of land in each zone) + compensation for crops, whereas: Compensation for crop = crop yield (tonne/ha/year) x area x price of crop (Kip/tonne) x 5 (years). The calculation is based on actual crop yields and open market prices. • Agriculture land: Compensation = (loss land area x price of land in each zone) + tree/crop compensation. • Residential land: Compensation = (loss land area x price of land in each zone) + damage cost of structure (if applicable). • Trees and Crops: Compensation = (land clearance cost + seedling cost) + maintenance cost x number of trees maintained).

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• For annual crops: there will be no compensation provided for annual crops as prior to the commencement of the project, the contractor will allow the farmers to harvest their produces at least six months in advance. If the farmers are not formally informed and the project is required to use the land where crops are not ready for harvest, the project then will provide compensation for annual crops as per the valuation of the PRC.

7.4.2 Compensation Matrix 117. All affected households are entitled to the various entitlements for losses anticipated under the Project and compensation measures set out in the following table 22 matrix. Table 22 Entitlement Matrix

Type of Losses Entitled Entitlements Implementation Issues Persons A. Loss of Land Residential Legal owner With remaining land sufficient to Legal owners are those who have Land or occupant rebuild houses/structures: (i) Cash land use certificates or land titles. identified compensation at replacement cost Voluntary donation of minor during which is equivalent to the current strips of residential land will only census and market value be allowed by the project tagging. of land of similar type and provided that the following category, and free from transaction criteria are strictly complied with: costs (taxes, administration fees) (i) the PAP’s total residential and (ii) District government to land area is not less than 300 m2; improve remaining residential land (ii) if the PAP/PAH’s total at no cost to PAP/PAH (e.g., filling residential land area is more than and leveling) so PAP/PAH can 300 m2, the strip of land that can move back onto a plot. be donated cannot be more than 5% of the total land area; and (iii) Without remaining land sufficient there are no houses, structures or to rebuild houses/structures: fixed assets on the affected (i) Replacement land equal in area, portion of land. same type and category, without Voluntary donation according to charge for taxes, registration and these criteria land transfer, with land title will follow the process in (assuming Land Titles are accordance with World Bank’s available in the area); if not, land Operational Policy, which is the survey certificate, OR (ii) cash same as the Government’s Decree compensation at replacement cost 84/PM/2016. which is equivalent to the current market value of land of similar type and category, free from transaction costs (taxes, administration fees) plus assistance to purchase and register land. B. Loss of Structures Totally Owners of Cash compensation at replacement Adequate time provided for Affected affected cost for the entire structure PAP/PAH to rebuild/repair their Houses/Shops, houses equivalent to current market prices structures. and Secondary whether land of (i) materials, with no deduction Structures is owned for depreciation of the structure or

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Type of Losses Entitled Entitlements Implementation Issues Persons (kitchen, rice (regardless of salvageable materials; (ii) bins) legal status). materials transport; and (iii) labor Partially cost to cover cost for dismantling, Affected transfer and rebuild; and Houses/Shops Timely provision of trucks for Affected houses and shops that but no longer hauling personal belongings at no are no longer viable are those viable cost to the PAP. whose remaining affected portion (Will require are no longer usable/habitable. relocation) Partially Owners of Cash compensation at replacement Affected affected cost for the affected portion of Houses and houses structure equivalent to current Shops and whether or market prices of (i) materials and secondary not land is labor, with no deduction for structures owned. depreciation of the structure or for (Will not salvageable materials (ii) materials require transport, and (iii) cost of repair of relocation) the unaffected portion. Electricity Electricity Cash compensation for cost to Poles Companies. dismantle, transfer and rebuild.

C. Loss of Livelihoods Activities Including Crops, Trees and Ponds Productive Legal owner For marginal loss of 10% (or less) Legal owners are those who Land (paddy, or occupant of land, cash compensation received land utilization garden, and identified at replacement cost which is certificates or land titles from the Teak during equivalent to the current market Land Titling Project. Plantation) census and value of land within the village, of tagging. similar type, category and productive capacity, free from transaction costs (taxes, administration fees), or Replacement land of similar type, Voluntary donation will not be category and productive capacity applied for any assets except for of land within or nearby the very minor losses of land holding village, with land title. as defined under this RPF.

If the impacts on the total productive land is 10% or more, as a priority, replacement land of similar type, category and productive capacity of land within or nearby the village, with land title (assuming Land Titles are issued in the area). If not, land use certificate to be issued. Alternatively, at the request of PAP or PAH, cash compensation at replacement cost plus assistance to purchase and register land.

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Type of Losses Entitled Entitlements Implementation Issues Persons Other Poor and PAPs or households whose Identification of vulnerable livelihood Vulnerable livelihoods is based on the service PAPs/PAHs who rely on natural impacts people sector or in hunting, fishing, resources would be relatively gathering or otherwise exploiting difficult in urban context. natural resources that are lost or adversely affected by the Project shall receive training support for economic restoration in alternative sustainable livelihoods. During the construction phase, about 13 shops will suffer certain amount of income losses, as they may lose their customers due to construction work and access constraints. These shops will receive compensation of 3 months net income calculated based on their actual monthly net income. For the informal business, the calculation will be based on their income-tax paid monthly. Livelihood assistance or to have access to the work associated with the construction work of the Project. The measures focus on avoiding potential social risks and are organized around the themes that include: a) reducing barriers to access to markets, trading and employment opportunities; b) empowerment through good governance, sound participatory processes and effective organization of the poor; and c) reducing vulnerability to poverty through building social assets (such as an allowance of 1 month supply of rice per person in the household with the allowance equivalent to 16 kg of rice at current market price and increased security of tenure). Other special assistances to the poor HHs and vulnerable groups are provided in Section 8.8 D. Loss of Common Property Resources Permanent loss Villagers or Compensation at replacement cost of physical village for present/existing structures cultural households. based on its present value. resources/ public

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Type of Losses Entitled Entitlements Implementation Issues Persons structures/ village or collective ownerships Graves located Owners of Compensation for the removal, in the affected graves. excavation, relocation, reburial and areas other related costs will be paid in cash to each affected family.

E. Temporary Impacts Due to Sub-Project Construction or Maintenance Temporary Use Legal owner For agricultural and residential The construction supervision of Land or occupant. land to be used by the civil works consultant will ensure that the (i) contractor as by-pass routes or for location and alignment of the by- contractor’s working space, (i) rent pass route to be proposed by the to be agreed between the civil works will have the least landowner and the civil works adverse social impacts; (ii) that contractor but should not the landowner is adequately be less than the unrealized income informed of his/her rights and and revenue that could be entitlements as per the Project generated by the property during resettlement policy; and (iii) the period agreement reached between the of temporary use of the land; (ii) landowner and the civil works cash compensation contractor are carried out. at replacement cost for affected fixed assets (e.g., structures, trees, crops); and (iii) restoration of the temporarily used land within 1 month after closure of the bypass route or removal of equipment and materials from contractor’s working space subject to the conditions agreed between the landowner and the civil works contractor. Transportation Relocating Provision of dump trucks to haul PAP/PAH may also opt for cash allowance households – all old and new building materials assistance. The amount (cost of to other sites. and personal possessions. labor and distance from relocation site) to be determined during implementation.

7.5 Resettlement Measures 118. Displaced persons will be entitled to the following types of compensation and rehabilitation measures. The proposed package here will be consulted with affected people during the field survey data collection: (1) Displaced persons losing agricultural land: a) The preferred mechanism for compensation of lost agricultural land will be through provision of replacement land of equal productive capacity and satisfactory to the displaced person. If satisfactory replacement land cannot be identified, compensation at replacement cost may be provided.

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b) Displaced persons will be compensated for the loss of standing crops at market price, for economic trees at net present value, and for other fixed assets (ancillary structures, wells, fences, irrigation improvements) at replacement cost. c) Compensation will be paid for temporary use of land, at a rate tied to duration of use, and the land or other assets will be restored to prior use conditions at no cost to the owner or user. (2) Displaced persons losing residential land and structures a) Loss of residential land and structures will be compensated either in-kind (through replacement of house site and garden area of equivalent size, satisfactory to the displaced person, or in cash compensation at replacement cost. b) If after partial land acquisition the remaining residential land is not sufficient to rebuild or restore a house of other structures of equivalent size or value, then at the request of the displaced person the entire residential land and structure will be acquired at replacement cost. c) Compensation will be paid at replacement cost for fixed assets. d) Tenants, who have leased a house for residential purposes will be provided with a cash grant of three months rental fee at the prevailing market rate in the area and will be assisted in identifying alternative accommodation. (3) Displaced persons losing business a) Compensation for loss of business will involve, as relevant: (i) provision of alternative business site of equal size and accessibility to customers, satisfactory to the displaced business operator; (ii) cash compensation for lost business structures: and (iii) transitional support for loss of income (including employee wages) during the transition period. (4) Infrastructure and access to services a) Infrastructure (such as water sources, roads, sewage systems or electrical supply) and community services (such as schools, clinics or community centers) will be restored or replaced at no cost to the communities affected. If new resettlement sites are established, infrastructure and services consistent with local standards will be provided at no cost to the relocated persons.

7.6 Site Selection, Site Preparation, and Relocation 119. The project is in the process of finalizing the design of the project and preparing for the field survey in order to have clear data for the estimation of costs for the compensation for different impacts. The proposed resettlement area is located near Phu That Pagoda at the Nam Mao river in the area of 4.9ha (please fee figure 3). In case of relocation will happen the site selections, site preparation and relocation plan will be designed, and report will cover information about the selected site and below information, but not limited to:

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1) Institutional and technical arrangements for identifying and preparing relocation sites, whether urban or rural, for which a combination of productive potential, locational advantages, and other factors is at least comparable to the advantages of the old sites, with an estimate of the time needed to acquire and transfer land and ancillary resources; 2) Any measures necessary to prevent land speculation and influx of ineligible persons at the selected sites; 3) Procedures for physical relocation under the sub-projects; including timetables for site preparation and transfer; and 4) Legal arrangements for regularizing tenure and transferring titles to resettle. 120. The action plan is integrated in Section 13.

7.7 Housing, Infrastructure, and Social Services 121. The project is in the process of finalizing the design of the sub-project and preparing for the field survey in order to have clear data for the estimation of costs for the compensation for different impacts. Thus, this report does not yet included the plan to provide (or, to finance PAH provision of) housing, infrastructure (e.g., water supply, feeder roads), and social services (e.g., schools, health services, etc.); plans to ensure comparable services to host populations; any necessary site development, engineering, and architectural designs for these facilities. The plan will be designed after the completion of the final design and the field survey, as well as site selection. Thus, compensation and relocation of the above public and community infrastructures and public utilities will be covered in a separate relocation plan to be prepared and implemented by the concerned agencies and technical service providers before the commencement of project activities (works).

7.8 Livelihood Restoration Measures 122. All eligible APs are entitled to income restoration measures sufficient to assist them to improve or at least maintain their pre-project living standards, income earning capacity and production levels. 123. In case the vulnerable and poor households are affected by the project activity. They are the following groups of households: a) Divorced or widowed female headed households with dependents and low income between 240,000 to 500,000 Kip per month per capita; b) Households with disabled or invalid persons and with low income between 240,000 to 500,000 Kip per month per capita; c) Households with persons falling under the government poverty line of 240,000 Kip per month per person; and d) Elderly households with no means of support and with low income between 240,000 to 500,000 Kip per month per capita. 124. These vulnerable households will need support for livelihood assistance or to have access to the work associated with the construction work of the Project. Thus, special measures,

Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 47/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province additional to the compensation entitlements, aimed to improve their status to bring them up to an acceptable level above the poverty line will be applied for the vulnerable group. 125. The measures focus on avoiding potential social risks and are organized around the themes that include: a) reducing barriers to access to markets, trading and employment opportunities; b) empowerment through good governance, sound participatory processes and effective organization of the poor; and c) reducing vulnerability to poverty through building social assets (such as an allowance of 3 month supply of rice per person in the household with the allowance equivalent to 16 kg of rice at current market price and increased security of tenure). The allowance cost is provided in Table 33 126. Article 15 of the Decree on Compensation and Resettlement Management in Development Project (No. 84, 2016) requires that there must be a special assistance to address the needs of the vulnerable groups who are affected by the development projects in order for these groups of people to overcome poverty and to restore their livelihood conditions based on the supervision of the provincial or district compensation and resettlement committee. 127. Special assistance to vulnerable groups may include: • Ensuring they rightfully receive their compensation; • Protection from opportunistic relatives; • Open bank accounts; • Special support for widows and children from female headed households to access support from the Provincial or District Committee for Compensation or designated representative at the district and provincial levels so as to enable them to process their entitlements; • Financial literacy training; • Find new land and / or accommodation; • Livelihood restoration (e.g. training) with special consideration of vulnerable groups; • Securing land tenure in new location. 8 Organization and Implementation Structure 128. The implementation framework of this ARAP1 complies with the World Bank’s OP 4.12, some provisions of Decree 84 of the Lao Government, and the Decree on Environmental Impact Assessment (2019) in consultation with the relevant national legislations including the Land Law, 2019.

8.1 Government Agencies 129. The institutional structures to be put in place for the implementation of the ARAP1 for the Project will be consistent with national guidelines and will include: • Department of Waterways under the MPWT who is the Project Owner (PO) led by the Director General as the Project Director; • Provincial Department of Public Work and Transport (PDPWT) in Muang Xay Oudomxay, the Sub-Project Owner;

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• Public Works and Transport Research Institute (PTRI) partnered to support preparation of safeguard instruments (ESMF, CRPF, EGEF and ESMP, ARAP1, EGEP), monitoring and reporting on implementation of the safeguard instruments including ARAP1; • Provincial Resettlement Committee (PRC, Oudomxay Province) led by the Provincial Vice-Governor and comprises of relevant provincial departments in charge of oversight and review of ARAP1 preparation, compensation and GRM; • District Compensation and Resettlement Units (Muang Xay) by the District Vice- Governor of Muang Xay and comprises of relevant district offices which serves as a secretariat of PRC) in charge of supervision, review and report on ARAP1 implementation, compensation and handling with GRM;

8.2 Provincial Resettlement Committee (PRC) 130. A Provincial Resettlement Committee (PRC) will be established for the Project in Oudomxay Province. PRC members will be appointed by the Governor of the Province. The PRC’s main role will be to oversee the implementation of ARAP1 for the project, and the committee will meet at least quarterly or more regularly if required. 131. The PRC has been recently established with an Agreement of the Provincial Governor (No. 039/PG.UDX, dated 09/01/2020) which include representatives from provincial cabinet office, Lao Front for National Development, PONRE, Public Security, DPWT, Provincial Propaganda Office, and District Governor (refer to below). The chair of the committee should be the Provincial Governor or Vice-Governor. Representatives of the PRC should include: • Vice-Governor of Oudomxay province; • Provincial Department of Natural Resources and Environment (PONRE) staff; • Provincial Justice Department representatives (if required for grievance redress). • Lao Front for National Development (LFND); • Department of Public Works and Transport (DPWT); • Provincial Public Security; • District Governor. 132. The specific responsibilities of the Provincial Resettlement Committee (PRC) are outlined in Decree 84, Article 20 as follows: • Supervise, manage the planning and implementation of the plan for compensation, resettlement and rehabilitation of the livelihood of people of the project owner and units under his supervision; • Appoint a unit to manage the compensation and resettlement, and an operation unit of the compensation and resettlement; • Consider and approve a plan for the environmental, social and natural management, follow-up and examination of the development project before the final endorsement of the Ministry of Natural Resources and Environment;

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• Work out a policy and define a unit of compensation, set the duration of maintenance of the allocation-resettlement area, transitional period and the period of livelihood rehabilitation of each development project; • Consider and timely settle the request(s) relating to compensations, allocation resettlement and the rehabilitation of people’s livelihood according to its mandate and responsibilities; • Report on its performance to the government and make copies and distribute them to the Ministry of Natural Resources and Environment at each period; • Issue decisions or notices as references for the implementation of the plan for compensation, resettlement and the rehabilitation of people’s livelihood; • Provide information for the affected and other stakeholders concerning the development project, benefits and impacts, progress in the implementation of the plan for compensation, resettlement and rehabilitation of people’s livelihood throughout the implementation of the development project; and • Exercise rights and perform other duties as assigned by the government.

8.3 District Resettlement Committee 133. The further planning and implementation of the project will be undertaken in coordination with district government agencies, through the establishment of District Resettlement Committee t (DRC) for each district affected by the project, which will be appointed by the PRC. The main function of the DRC will be to represent the interest of the PAPs and stakeholders in dealing with Project impacts and mitigation measures with regards to resettlement and land impacts. • Guide and facilitate the implementation of activities related to the plan for compensation, resettlement and rehabilitation of people’s livelihood in its locality; • Support and render co-operation, co-ordinate with and join the unit to manage the compensation, and resettlement and the project owner in implementing timely the plan for compensation, resettlement and rehabilitation of people’s livelihood in its locality; • Consider and timely settle the request(s) related to the compensation, and resettlement and rehabilitation of people’s livelihood according to its mandate and responsibilities; • Report the unit’s performance to the management unit of compensation and resettlement, and other related parties at each period (in this case reporting would be to the PRC); • Supply information to the affected and other stakeholders on the development project, benefits, and impacts, progress in the implementation of the plan for compensation, resettlement and rehabilitation of people’s livelihood throughout the implementation of the development project; and • Exercise rights and perform other duties as assigned by the management unit of the compensation, and resettlement, and higher authorities. 134. The members of the DRC will include representatives from all districts potentially affected by the project. The DRC will be chaired by the District Governors or Vice-Governors of the

Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 50/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province relevant districts. The representatives from each district required to provide full and balanced advice on ARAP1 implementation include: • Vice-Governor Muang Xay; • Provincial Office of Natural Resources and Environment (PONRE) staff; • District Office of Natural Resources and Environment (DONRE) staff; • District Justice Department representatives (if required for grievance redress); • District Forestry Officer; • District Agriculture Officer; • District Land Officer; • Lao Women Union (LWU) representatives; • Lao Front for National Development (LFND); • representatives; and • Village chiefs from affected villages, including traditional leaders as required. 135. Village Authority is responsible for facilitating ARAP1 preparation and implementation and dealing with GRM at village level. The Village Authority includes Village Mediation Committees or Units (VMCs/VMUs) in charge of receiving, addressing and recording grievances in GRM logbook (See Attachment 15), and escalating pending grievance that could not be resolved at village level to district and provincial level committees respectively.

8.4 Measures for Organizational Capacity Building 136. The Project is expected to create positive impacts on the environment by improving climate resilience of the road and reducing greenhouse gas emissions from traffic per kilometer travelled. The Project will also provide significant capacity building through on-the-job training, the introduction and implementation of ODX project. 137. The PMU with the support from EDPD/PTRI will have a supervisory role in planning, capacity building and monitoring the implementation of ARAP1 to ensure that provisions contained in the ARAP1 are implemented, monitored and reported through the following capacity buildings: • Institutional capacity building may be required to effectively carry out implementation activities in the affected areas. This is particularly important as livelihood restoration (beyond cash compensation) is a critical component of the program and is not a legislative requirement, meaning that Local Governments and organizations within affected communities may not have had prior experience with mobilization, implementation support and monitoring of livelihood restoration measures. • Institutional capacity building could include training activities, workshops and technical assistance provided in advance of entitlement distribution and land acquisition. Capacity building would improve the institutional groups’ understanding of the objectives of the ARAP1. Capacity assessment should be included in all livelihood restoration initiatives to confirm that the stakeholders involved will have the capacity to implement the initiatives proposed, and capacity building activities should target any gaps identified. Lessons learnt

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from previous similar projects will be important to incorporate into capacity building exercises. 9 Community Participation, Consultation and Information Disclosure 138. PAPs and PAHs have been invited to participate in public meetings in the early stages of the ARAP1 preparation. They were provided with reliable information on the proposed ODX project, its impacts and proposed mitigation measures and economic restoration activities. Information publicly disclosed will also include cut-off dates for each sub-project, eligibility criteria and entitlements, modalities of compensation, complaints and grievance redress procedures. The PAP and PAH and different populations were provided with opportunities to present their ideas and suggestions as inputs into the ARAP1 and Unit Rate preparation process through a series of participatory exercises and focus group discussion (FGD) with PAP and PAH, to ensure affected parties have a stake in the process. 139. During the preparation of compensation unit rate, consultations have been undertaken at various levels with the district and village authorities and the representative of the affected people and it will continue throughout the Project. So far, the consultation focused on setting the unit prices for compensation, defined type of affected assets, affected people and how compensation process and grievance process will be placed and implemented. Table 23 below summarized the meetings jointly attended by the consultant team, local authorities and affected people/households. List of participants are in Attachment 11. Table 23 Locations and Participants of Consultation Meetings

Dates Meeting Locations Male Female Total 22 Nov 2019 Oudomxay province 34 7 41 21 Jan 2020 Oudomay province 30 7 37 11 Mar 2020 Oudomxay province 14 7 21 Total 78 21 99

140. Brief results from these consultation events are summarized in the following table 24. Table 24 Results of Meeting in Nov 2019-Jan 2020

Meeting Objectives Results from the meting date 22 Nov To discuss • The field mission aims to complete at less 80% of 2019 project’s data collection on, especially data on affected compensation unit assets. 21 Jan 2020 price; to present • Data to be used for the analysis should be a unit price data combination of data from the survey and secondary collection form, data collected from village and district authorities. affected people • Composition of the Grievance Redress Mechanism data collection member should be improved. GRM committee at form. provincial and district level should be the lead and assigned technical staff to coordinate and

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Meeting Objectives Results from the meting date implement together with the project team at the field level. • Development Project as a based compensation unit price for this project. However, some items, the unit prices should be adjusted to ensure it is in line with the PM order 084/PM (2016). • Unit price for rubber plantation tree has to adjust to market price. • The land title for the affected land should be used based on the land title to be provided by the land owner. • To avoid any issues in the future regarding conflict on land, no new land title to be issued from December 2019 onward, for the land located in the project area. • In the future, more consultation meetings to be organized with the affected people. • Muang Xay authority issued a notification of prohibits to do permanent construction in the project area, affective from beginning of August 2017. • Detail name of affected people is not yet available, as this is a preliminarily data collection.

11 Mar To discuss • Agreed to apply market price. 2020 compensation unit • Compensation to be provided to the affected people price that who use form 01, following rule and regulation. consolidated the • Residential land that has minutes not allowed to do market prices; to any construction on the land, but not following the present and minutes, that land will not be compensated. discuss numbers • More than 90% of affected people constructed and types of structural infrastructures along the river side, which affected asset; before defined the right of way along the riverside follow up on data 20 meters. The compensation should be provided to collection; present them based on the current situation. work plan. • Compensation for trees and bamboo trees shall be made for the big trees only. • Vegetable growth along the riverside shall be compensated according to effect of annual sale volume/amount. • Upon approval of the compensation unit price, dissemination of this information and all attachments will be made and announced to affected household. • Types of land and assets affected by the project will be applied to those that their livelihood affected by the project.

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141. During 11-29 May 2020, the consultant has conducted consultation with affected with a total number of 20 participants of which 8 are female. Participants are from affected households (men, women, ethnic minorities, and disadvantaged people), village authorities, representatives from Muang Xay Women's Union, Lao National Front for Development and Provincial Public Work and Transport (please see list of participants in Attachment 13). The result of consultation meeting is summarized in table 25 below. The objectives of consultation are: • To disseminate information on project: positive and negative impacts and mitigation measures; • To obtain opinions, concerns and recommendations of community people about implementation of the project; • To conduct Inventory of Loss (IOL); • To collect data and information for development of ARAP1, EGEP and EIA. Table 25 Number of Participants in May 2020

No. Village Date No. of Participants Total Female 1 Cheng 18/5/2020 20 8

142. Results from the consultation are highlighted in table 26 below and details are provided in Attachment 12. Table 26 Summary of Consultation Results in May 2020

Positive Impacts Negative Impacts Recommendations • The Project will have • Concern over taking • Livelihood restoration activities potential impacts advantage of the should be provided to affect across Muang Xay contractor to take over all households particularly those City. However, it will the land after being having only one plot of create economic handed over to the farmland/grazing land and is benefits in the future project. impacted by the project. such as income • Some impacts on land, • The relevant project management generation and better loss of agricultural land, committees must allocate new household economic and difficulties land for land compensation for conditions as the associated with affected people/households. people can increase relocation/resettlement. • The project should carry out land sales of their goods • Potential disturbance and asset surveys and use the and services. The from construction results as the basis for calculation local people can set activities such as noise, of compensation in an up shops to provide dust, wastes and other appropriate and fair approach. services to visitors; health issues. • The project should have proper • There will be better • The loss of land would approach for management of road networks affect household income. construction impacts. equipped with • Concern over difficulties • Conduct awareness to affected drainage and flap in association with people to comprehend the need gates which will then relocation/resettlement, if for the project, construction reduce potential applied.

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Positive Impacts Negative Impacts Recommendations annual floods, as well • Avoid or if not possible, works, and compensation before as reduce riverbank minimize impacts on land the construction begins. erosion; and/or houses of local • Provide explanation to local • The city landscape people as much as people to understand about the will be more possible. project requirements in general attractive with public • The new relocation area so that they receive correct parks and recreational would not be satisfied by information in accordance with areas for outdoor the affected people or it relevant laws and regulations. activities such as may be located far from • Avoid an approach that allows exercises. the city. construction begins first and the • Better social • Some impacts on then addresses compensation connectivity; agricultural land. issues. • Enhance social and • Financial costs and time • Consultations are required with community for relocation and/or new local people and agreement is awareness on flood settlement. made with the land owner on its protection. • Potential social issues value and compensation methods such as robbery. (e.g. land for land or cast). • Some families would lose • Identify key relevant regulations their houses while some and policy on compensation and people have only one livelihood restoration so that house/property. people are better-off after the • Land for land project. compensation is • Compensation must be preferred for residential completed before begins project land. The measurement of construction. land must be correct with • The project, district and clear marks and the provincial authorities are calculation of responsible for project compensation rates implementation, and if people are should be appropriate to engaged in some extent, it would avoid mental health be more beneficial. issues over the project. • The village and district authorities and the project team will have to work together.

143. Throughout, ARAP1 implementation, monthly meetings will be held with PAP and PAH to garner their feedback on how the process can be improved. There will also be face to face meetings with individual PAPs throughout the process, as well as a meeting to finalize and sign the compensation agreement. 144. PAP and PAH will be involved in various committees, including the grievance redress committee (to be established), which will ensure their participation in the decision-making process throughout various stages of the ARAP1 process, including preparation and implementation. Following ODX project completion, a survey could be undertaken by the MPWT/DOW/PMU/PTRI amongst PAP and PAH to assess their level of satisfaction with the process and results of the ARAP1.

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145. The project supports a participatory and consultative approach involving meaningful engagement with different populations (ethnic peoples and vulnerable groups – women and female/male youth and children, men, the elderly and disabled, landless, and poor, etc.), CSOs (NPAs, CBOs) and other relevant stakeholders. The approach was intended to enhance ownership and general understanding of different populations through free, prior and informed consultation and public access to information for the ESMF and safeguard management instruments (i.e., RAP/ARAP1, EGEP and ESMP, EGDP), roles and responsibilities, and perceptions as a basis for improving coordination and achievement of the project objectives. The participatory and consultative approach should ensure effective communication and coordination with all stakeholders and different populations at national and local levels. 146. Both English language and Lao language versions of ARAP1 will be posted on the MPWT official government website and, otherwise, distributed to national and local governments, key stakeholders and civil society organizations, and different populations two weeks prior to the second public consultation meeting. Initial results suggest that most of the stakeholders and different populations support the proposed sub-project initiatives. 147. Once the final safeguard instruments are accepted by the World Bank, the documents will be disclosed (in both English and Lao languages) on the MPWT website. The documents will be sent to the Bank for review by the World Bank and, once finalized, submitted to the Bank InfoShop and, re-disclosed in Lao PDR. 148. The consultation with affected communities shall be implemented and undertaken continuously throughout the construction phase. Consultation report of each consultation shall be made with minutes of meeting along with attendance records and the signatures of all participants. The future consultations are listed in table 27 below. Table 27 Future Consultations

No. Consultation Objectives Methods Implementing Timeline Body Pre-construction 1 Consultation with To finalize draft Open PTRI/EDPD July- PAHs and Provincial meeting and August2020 concerned Agreement on DPWT/PIU stakeholders at Compensation provincial, district Unit Rate and village levels 2 EIA Reports: To obtain Open MONRE/PTRI August- consultation comments on the Meetings /EDPD and September meeting with draft EIA report DOW 2020 concerned local and incorporate all authorizes comments into the (provincial and revised EIA report district levels) and representatives from affected villages.

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No. Consultation Objectives Methods Implementing Timeline Body 3 ARAP1 To confirm and Meetingss PTRI/EDPD Jul-Oct 2020 Implementation: verify and obtain and open and Consultation with consent from PAP discussion DPWT/PIU concerned on their losses and s authorities and compensation affected amount households on confirmation of loss and compensation amount and method. Separate consultations may need to be conducted with vulnerable households and individuals to ensure that their concerns and needs have been met. Construction Phase 4 Consultations with To inform PAP on Open Contractor, Throughout affected project meeting CSC, DPWTs construction communities on construction phase project activities, activity and impacts, schedule and construction potential risks as schedule and work well as community plan health and safety 5 Consultation To optain Meeting, PTRI/EDPD Throughout various community opinion/ideas and Focused and construction development proposal from PAP Group DPWT/PIU phase measures and on livelihood Discussio livelihood restoration n and In- restoration initiatives. depth initiatives. Interview 6 Dissemination of To educate PAP Open Contractor, Throughout community health on community meeting CSC, DPWTs construction and safety with health and safety phase affected and accient communities prevention measures 7 Ad hoc meetings To address or Open Contractor, Throughout on a basis where solve conflicts Meeting, CSC, construction substantial changes Focused DPWT,PIU, phase have been made or Group PTRI conflict has arisen Discussio

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No. Consultation Objectives Methods Implementing Timeline Body due to accident, n and In- misunderstanding depth or other causes. Interview Operation Phase 8 Consultation on the To obtain opinion Open PTRI/EDPD O&M Phase preparation and of water user Meeting, and development of an groups (WUG) and Focused DPWT/PIU emergency action to develop EAP Group plan (EAP) for Discussio Muang La and n and In- establishing a depth water user groups Interview (WUG) for Nam Kor 9 Consultation on To obtain opinion Open PTRI/EDPD O&M Phase Green Clean and of local Meeting, and Beautiful (GCB) community on Focused DPWT/PIU community participatory GCB Group network on waste community Discussio management in network on waste n and In- ODX (Moving management depth towards GCB for Interview ODX)

10 Grievance Redress Procedures

149. The DIA, MPWT DOW and DPWT have established a grievance redress committee at the village level, as well as the district and provincial level. Please refer to ARAP1 for more details. These were established to deal with resettlement related grievances as they arise. These committees will receive, evaluate and facilitate the resolution of PAP and PAH concerns, complaints and grievances. Grievance redress committees will be comprised of representatives of PAP and PAH, community leaders, and independent civil society organizations (Non-Profit Association and CBO) in addition to representatives from village and district levels, and PMU and PIU authorities. If the grievance relates to a dispute over the valuation of an asset to be acquired, then the DIA will acquire an additional independent assessor to inform the decision of the relevant grievance redress committee. The grievance redress committees will function, for the benefit of PAP and PAH during the entire life of the sub-projects, including the defects liability period. 150. Throughout the project planning, implementation and operation, all complaints and grievances may be received in writing, or if given verbally then written at the same time and place, members of the affected ethnic group community and duly recorded by each level of the grievance redress process (community, district, provincial). A template or form will be developed that is easy to understand and to fill in for anyone who wishes to issue a complaint. Members of affected ethnic group communities will be exempted from all administrative and legal fees incurred

Lot 1 Abbreviated Resettlement Action Plan, November 2020 Page 58/86 Lao PDR South East Asia Disaster Risk Management Project Component 1: Integrated Urban Flood Risk Management in Muang Xay, Oudomxay (ODX) Province pursuant to the grievance redress procedures. Grievances related to any aspect of the proposed project will be dealt with through negotiations with the ultimate aim of reaching a consensus. Grievance redress procedures aim to provide a time-bound and transparent mechanism to voice and resolve social and environmental concerns linked to the project. These grievance redress procedures are not meant to circumvent the government’s inbuilt redress process, nor provisions of the national laws, but rather to address members of ethnic group communities’ concerns and complaints promptly, making it readily accessible to all segments of ethnic group communities and scaled to the risks and impacts of the project. 151. The EGEP will establish the means for members of affected ethnic group communities to bring complaints to the attention of relevant project authorities. Grievance procedures should include reasonable performance standards, including time required to respond to complaints and should be provided without charge to those displaced persons. The EGEP should also state other avenues available to aggrieved persons if the project-related procedures fail to resolve complaints. Article 23 and 24 of the C&R Decree (No. 84/GOL, 2016) require the project to establish an effective mechanism for grievance resolution. The decree requires that the sub-project proponent, Provincial Department of Public Works and Transport (DPWT) Oudomxay Waterway Sector, is responsible for setting up the grievance redress mechanism and to take actions to resolve issues. 152. The ESMF contains details on the grievance redress mechanism for the project. Grievances related to environmental and social issues from directly or indirectly affected ethnic groups as a result of implementation of project will be resolved by the Grievance Redress Committee (GRC) through the project grievance redress mechanism presented in Figure 5 below. 153. However, the complainant also retains the right to bypass this procedure and can address a grievance directly to the DPTW PIU office or the national assembly, as provided by law in Lao PDR. At each level grievance details, discussions and outcomes will be documented and recorded in a grievance logbook. The status of grievances submitted and grievance redress will be reported to Provincial DPWT Oudomxay Waterway sector management through the monthly report. In order to effectively and quickly resolve grievances PAP and PAH may have, the following process will be applied: a) Stage 1: If PAP and PAH are not satisfied with the resettlement plan or its implementation, the person can issue oral or written complaint to the village committee or the District Resettlement Office (DRO). If it is oral complaint, the village should deal with this complaint and make written records. Village committee or DRO should solve the complaint within two weeks. b) Stage 2: If PAP and PAH are not satisfied with the result of step 1, he/she can file appeal with the Project Resettlement Office (PRO) after he receives the decision made in step 1. The PRO should make a decision within two weeks. c) Stage 3: If PAP and PAH are not satisfied with the result of step 2, he/she can file appeal with provincial Resettlement Committee for administrative arbitration after receiving the decision made by the PRO. The administrative arbitration organization should make the arbitrated decision within 10 days.

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d) Stage 4: If PAP and PAH are still unsatisfied with the arbitrated decision made by the administrative arbitration organization, after receiving the arbitrated decision, he/she can file a lawsuit in a civil court according to relevant laws and regulations in Lao PDR.

Local Resolution Measures

Solved End

If NOT Grievance Redress Committee (Project Level)

Solved in 10 days? End

If NOT PDoNRE

Solved in 20 days? End

If NOT If still unresolved, RAP may choose to exercise their right under Lao PDR law to refer the matter to a court of law.

Figure 4 GRM Procedure 154. Members of ethnic group communities can make a complaint or appeal on any aspects of project’ design and implementation, including issues related to resettlement. A complaint and grievance feedback form will be developed under the project and made available at Oudomxay’s provincial capital, Muang Xay, and vicinity, including in ethnic group communities, for use by community members to raise complaints or grievances. Ethnic group community members will be clearly informed of the complaint and appeal channels described above through community meetings and other forms of communication. 155. PAP and PAH can make a complaint or appeal on any and all aspects of project design and implementation, including issues related to resettlement. A hotline phone will be established with dedicated staff assigned to so that PAPs or complainants will not be charged for their phone calls used to raise their grievances and their complaints are responded in an efficient manner. PAP and PAH will be clearly informed of the complaint and grievance redress mechanism and appeal channels described herewith through village meetings and other channels. In addition, a complaint box should be made available in a convenient location of the village.

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156. The Project organizations addressing the community level complaint and appeal process shall not charge any fee. Any expenses incurred due to complaint and appeal should be paid as unexpected expenses and paid for by the Project. The communities and individuals who believe that they are adversely affected by a WB supported project may submit complaints to existing project-level grievance redress mechanism or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaints to the WB’s independent Inspection Panel which determines whether harms occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the WB’s attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit www.worldbank.org/grs. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. 157. The communities and individuals who wish to submit their complaints to existing project- level grievance redress mechanism or the WB’s Grievance Redress Service (GRS) could be done by contacting the following relevant staff and organizations: Table 28 GRM Contact Persons

No Name and Position Organization Contact . Surname Number 1 Mr. Somchith Provincial Deputy Steering 020 918 73334 Panyasack Governor ,Economic Committee Work Leader 3 Mr. Phommasouk Muang Xay Deputy Head of the 020 999 80669 Monechandy Governor Secretariat 4 Mr. Khamdam President of Muang Xay Deputy Head of 020 566 43633 Phongmany Lao Front for National the Secretariat Development Office 5 Mr. Somsanith Chief of village Thin Village 020 55139636 Inthavong 6 Mr. Phonekeo Chief of village Nawarnoy Village 030 92092041 Sisongkham 7 Mr. Mounsy Chief of village Vanghai Village 020 55198494 Phommachanh 8 Mr. Chainga Chief of village Pasak Village 020 99644443 9 Mr. Sonephet Chief of village Monetai Village 020 55781982 Duangboubpha 10 Mr. Vanxay Chief of village Longkordeua 020 56526501 Bountapha Village 11 Mr. Sisongkham Chief of village Cheng Village 020 59336455 12 Mr. Chansitham Chief of village Homsouk Village 030 2219412 Xayyalath 13 Mr. Chandy Ly Chief of village Nongmaenga 030 9044877 Village 14 Bounsy Xaylasa Chief of village Laksi Village 030 4900317

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No Name and Position Organization Contact . Surname Number 15 Mr. Khamphai Chief of village Donekeo Village 020 59795899 Anouvong 16 Mr. Thong Chief of village Viengsa Village 030 4877939 Phommasone 17 Mr. Bounvai Chief of village Houaykhoum 020 22061511 Village 18 Mr. Khamsao Chief of village Nasao Village 020 22379291 Xaythana 19 Mr. Khamsang Chief of village Namy Village 020 58971770 Phatthala 20 Mr. Bounhom Chief of village Nalao Village 020 55581118 Yordbounhak 11 Action Plan and Implementation Schedule

158. The overall schedule covering all settlement activities from preparation through implementation, including target dates for the achievement of expected benefits to PAH (resettles) and linked to the implementation of the overall project is presented in the following table 29.

Table 29: ARAP1 Implementation Schedule

No Task Description Responsibility Schedule 1 Establishment of The PRC will oversee the PRC and January 2020 PRC implementation of the ARAP1 MPWT/DOW including the preparation phase. 2 Notify Cut-Off- PIU disseminate Cut-Off Date PIU Mar 2020 Date letter issued by DPWT of Oudomxay Province. 2 Establishment an An ad hoc committee was MPWT/DOW and May 2020 ad hoc committee established to develop Provincial for compensation compensation rates for the loss authorities of land and assets in the DRM project areas. 3 Government Capacity building for key MPWT/DOW May 2020 capacity building Government stakeholders e.g. members of PRC. 4 Finalization of Final ARAP1 will follow review Consultant in June 2020 Resettlement and update of draft ARAP1 association with Action Plan DOW/MPTW 5 Completion of the The inventory of loss of land PRC and the May 2020 inventory of loss and assets in Cheng village Consultant completed before finalization of the ARAP1. 7 Conduct ongoing The PRC, MPWT/DOW and the PRC, DOW and June-July formal consultation Consultant to notify the Consultant 2020 and public stakeholders of project activities disclosure with and allow participation in

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No Task Description Responsibility Schedule affected planning and decision making communities and particularly on compensation relevant authorities and resettlement works. 8 Conduct detailed Formal consultation with PAPs MPWT/DOW and May-August measurement of concern, and valuation of DPWT 2020 survey (DMS) of 100% of assets impacted by the land and assets Project and its associated works affected by the to be conducted. DRM’s subprojects. 9 Identification of Identification of compensation MPWT/DOW and August 2020 compensation/resto and restoration measures should DPWT and PRC ration requirements consider any factors of for land and assets vulnerability identified during impacted by the detailed measurements and DRM project. consultation. 10 Issuance of Issuance of compensation and MPWT/DOW and September compensation / additional restoration measures DPWT and PRC 2020 restoration for land and assets impacted at requirements for the project development sites in land and assets agreement with asset owner. impacted by the Information on compensation Project. amounts and processes, requirements that Affected Persons must fulfil before payment is affected and payment timing will be communicated to Affected Persons. All compensation payments will be made prior to land acquisition and through the designated bank accounts of Affected Persons 11 Asset owners Resettlement / relocation MPWT/DOW and October 2020 impacted by the activities to include demolish DPWT and PRC project their houses, move their assets to development will the new premises, harvest of be required to crops, transportation of livestock resettle and any additional support required to restore activities at new site (e.g. installation of equipment, fencing etc.). 12 Delivery of Implementation of various MPWT/DOW and From livelihood community development DPWT and PRC October - restoration support measures and livelihood December for severely restoration initiatives. Villages 2020 affected affected by construction to be PAPs/PAHs prioritised for livelihood (expected to lose restoration. Initiatives to then

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No Task Description Responsibility Schedule >10% of continue for villages to be productive assets affected by sub-project and entirely development activities. resettle) and the vulnerable and poor 13 New resettlement Land registration and titling for PoNRE, PRC and 20 Dec-2020 of PAPs affected/deducted land parcels DOW - 30-Jan- and for new land parcels 2021 compensated or purchased by PAPs/PAHs (if requested) as well as associated costs to be also included in ARAP1 14 Relocation of Relocation of public utilities EDL and concern 01- 30 - public utilities and (electricity, telephone lines and agencies September infrastructure water supply system) 2020 15 Inspection and All structures and assists verification of compensated have to be Social safeguard End of ARAP1/compensat removed before hand over the specialist of October 2020 ion completion by project site to contractor. Supervision supervision Social safeguard specialist of (ISWS) consultant consultant to Supervision (ISWS) consultant recommend site will review and certify if the handover to PIU compensation and resettlement and contractor to are completed and recommend start work PIU to hand over the project site to contractors to start their works. 16 Monitoring the Follow up/monitoring ARAP1 MPWT/DOW and September implementation of during and after resettlement DPWT and PRC 2020 - ARAP1 with GRM including GRM and include the December - continue to be results in the safeguard 2022 active until the end monitoring report of the project works 17 Completion audit A completion audit will be WB, Consultant September- undertaken once all mitigation October 2020 measures have been completed to assess whether the ARAP1 provisions have been met. 18 Reporting Completion Report Preparation MPWT/DOW and November - for Resettlement and DPWT and PRC December Compensation 2022

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12 Compensation Budget

159. Based on the inventory, estimation of the compensation and income restoration for each affected asset such as residential land, structure or building and trees was estimated based on the Draft Unit Rate for Compensation Costs. The results of these gives a preliminary estimate at LAK1,312,527,400 or about USD145,837 (USD1=9,000LAK)for compensation and income restoration as summarized in the Table 30 below including compensation for affected structures and industrial trees, dismantlement and transportation, and allowance (rice). This amount of budget for ARAP1 implementation excludes a) compensation cost for affected communal infrastructures/assets, b) operational costs including perdiums, travel related costs, accommodation, monitoring and reporting, capacity building or training for implementing agencies and committees, and c) costs for relocation of public utilities (e.g electric system, water supply, telecommunication lines. The operational costs are covered in separate project management budget which include safeguard implementation, monitoring and consultants’ costs while the costs for relocation of public and communal infrastructures will be prepared and implemented under separate arrangement. 160. A preliminary compensation unit rates for DRM project is being finalized by the PRC in consultation with DOW/MPTW. Indicative rates for a single concrete houses range between 2,700,000 Kip/m2 and 4,200,000 Kip/m2 depending on its structure and construction materials. Compensation rates for one-floor wood house are significantly lower and were initially set between 816,000 Kip/m2 and 2,640,000 Kip/m2 reliant on structures and construction materials. Similarly, the compensation rates for double storey concrete houses vary between 2,680,000 Kip/m2 and 4,340,000 Kip/m2 determining by its primary construction materials. The Decision of Provincial Governor, No. 1105/GOV.ODX, dated 15 September 2020 on Compensation Rates for DRM Project is provided in Attachment 3. Please refer to Attachment 8 for Minutes of Valuation of Building Condition and Compensation Amount of 8 PAHs living in the public land. 161. Monitoring is a key component of the project implementation. MPWT DOW will appoint adequate full-time staff as part of the internal monitoring process. These staff will monitor the process of ARAP1 implementation, land acquisition or land donation in collaboration with local village or district authorities. If necessary, capacity building will likely need to be given on the monitoring process for designated GOL staff at the onset. Table 30 Total Compensation Cost

Total Compensation Cost 1,312,527,400 145,837

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Table 31 Total Compensation Cost for Affected Structures and Trees

No. Name of PAP Type of Loss Description Unit Affected Unit cost Valuation of Building Total Compensation Number (LAK/m2) Condition (%) Cost (LAK) 1 Mr. Single story Concrete post, Tile floor, m2 90 3,840,000 75 259,200,000 Bounsavath house Brick wall, Tile roof Chanthaloun Kitchen Concrete post and floor, m2 62.5 360,000 62 13,950,000 Brick wall and Zinc roof Total 273,150,000 2 Ms.Soutchay Single story Post post 6 400,000 2,400,000 Vonglom house Beam m 27 130,000 3,510,000 Concrete post, Concrete m2 16 2,640,000 80 33,792,000 floor, Brick wall, Tile roof Porch of Wooden structure, Zinc roof m2 12 300,000 80 2,880,000 house Industrial tree Teak tree tree 10 120,000 1,200,000 Total 43,782,000 3 Mr. Sengchanh House Post post 6 400,000 Installed post 2,400,000 Vonglom structure Beam m 27 130,000 3,510,000 Total 5,910,000 4 Mr. Thongvanh Single story Concrete pos, Wooden floor, m2 120 4,200,000 75 378,000,000 Thaiphathep house Brick wall, Tile roof Kitchen Wooden post, Concrete m2 15 300,000 65 2,925,000 floor, Wooden wall, Zinc roof Total 380,925,000 5 Mr. Somphone Single story Concrete post, Tile floor, m2 110 4,200,000 80 369,600,000 Chithakrang house Brick wall, Tile roof Kitchen Wooden post and floor, m2 18 300,000 60 3,240,000 Wooden wall, Zinc roof Parking Wooden post, Zinc roof m2 21 300,000 40 2,520,000 Total 375,360,000 6 Mr. Single story Concrete post, Tile floor, m2 72 3,211,000 70 161,834,400 Khammanh house Brick wall, Zinc roof Chittakrang Kitchen Wooden post, Wooden floor m2 21 300,000 60 3,780,000 and wall, Zinc roof

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No. Name of PAP Type of Loss Description Unit Affected Unit cost Valuation of Building Total Compensation Number (LAK/m2) Condition (%) Cost (LAK) Toilet Concrete post and floor, m2 4 420,000 50 840,000 Wooden wall and Zinc roof Animal Wooden post, Ground floor, m2 4 300,000 30 360,000 husbandry Wooden wall, Zinc roof Total 166,814,400 7 Mr. Xayysan + Moveable hut Bamboo post and floor, Zinc m2 6 300,000 50 900,000 Ms. Khambai roof 8 Mr. Khamkong Wooden Wooden post and wall, Zinc m2 54 420,000 70 15,876,000 Vongphachanh house roof

9 Mr. Khamlar Industrial tree Teak tree tree 42 120,000 5,040,000 Inthani Rosewood tree 8 120,000 960,000 Total 6,000,000

Total Compensation Cost (LAK) 1,312,527,400 Total Compensation Cost (USD) 145,837

Table 32 Dismantlement and Transportation Costs

Transportation Cost Transportation Dismantlement No. Name of PAP Type of Loss Price per Total Transportation Distance / km Cost No. of Trip Trip Cost

1 Mr. Bounsavath Single story house 5,000,000 300,000 3 900,000 5 Chanthaloun and kitchen 2 Ms.Soutchay Single story house, 300,000 1 300,000 5 Vonglom porch and post 1,500,000 Mr. Sengchanh 3 0 0 0 0 Vonglom 4 house posts 500,000 4 Mr. Thongvanh Single story house 250,000 5 1,250,000 2 Thaiphathep and kitchen 5,000,000 Mr. Somphone 5 Single story house, 5,000,000 300,000 5 1,500,000 5 Chithakrang kitchen and parking

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Transportation Cost Transportation Dismantlement No. Name of PAP Type of Loss Price per Total Transportation Distance / km Cost No. of Trip Trip Cost Single story house, 6 Mr. Khammanh kitchen, toilet and 3,500,000 350,000 4 1,400,000 7 Chittakrang animal husbandry Mr. Xayysan + Ms. 7 500,000 0 0 0 0 Khambai Movable hut 8 Mr. Khamkong 1,500,000 300,000 2 600,000 5 Vongphachanh Wooden house Total 22,500,000 5,950,000 Grand Total (LAK) 28,450,000 Grand Total (USD) 3,161

Table 33 Allowance Cost (Rice)

Name of PAP Type of Loss No. of Family Assistance Rice/Person Price per Kg Total Cost (LAK) No. Member Duration (Kg) (LAK) 1 Mr. Bounsavath Single story house 5 3 16 10,000 2,400,000 Chanthaloun and kitchen 2 Ms.Soutchay Single story house, 4 3 16 10,000 1,920,000 Vonglom porch and post 3 Mr. Sengchanh 4 house posts 5 3 16 10,000 2,400,000 Vonglom 4 Mr. Thongvanh Single story house 6 3 16 10,000 2,880,000 Thaiphathep and kitchen 5 Mr. Somphone Single story house, 4 3 16 10,000 1,920,000 Chithakrang kitchen and parking 6 Mr. Khammanh Single story house, 4 3 16 10,000 1,920,000 Chittakrang kitchen, toilet and animal husbandry

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Name of PAP Type of Loss No. of Family Assistance Rice/Person Price per Kg Total Cost (LAK) No. Member Duration (Kg) (LAK) 7 Mr. Xayysan + Ms. Movable hut 0 - Khambai 8 Mr. Khamkong Wooden house 4 3 16 10,000 1,920,000 Vongphachanh Total Cost (LAK) 15,360,000 Total Cost (USD) 1,707

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13 Monitoring and Evaluation

162. Monitoring is a key component of the project implementation. MPWT DOW will appoint adequate full-time staff as part of the internal monitoring process. These staff will monitor the process of ARAP1 implementation, land acquisition or land donation in collaboration with local village or district authorities. If necessary, capacity building will likely need to be given on the monitoring process for designated GOL staff at the onset. 163. Internal Monitoring: 1) Contents of the internal monitoring reports that will be issued on a monthly basis include: a) Payment and use of the funds for land acquisition compensation and restoration; b) Support to the vulnerable groups; c) Land readjustment and reallocation; d) Quality and quantity of newly reclaimed land; e) Schedule of the above activities; f) Implementation policies and rules in the resettlement plan; g) Participation and consultation of the affected people during the ARAP1 implementation; and h) Staffing, training, work schedule and resettlement operation at various levels. 2) Quarterly monitoring visits will be undertaken as per specific activities in order to: a) Improve environmental and social management practices; b) Ensure the efficiency and quality of the environmental and social assessment processes; c) Establish evidence- and performance-based environmental and social assessment for the project; and d) Provide an opportunity to report the results of safeguards instrument impacts and proposed mitigation measures’ implementation. 3) With regard to the sub-project implementation, the MPWT DOW DIA PMU will conduct monitoring activities during the feasibility studies and ESMP to determine the extent to which mitigation measures are successfully implemented. Monitoring will focus on three key areas: (i) compliance monitoring; (ii) impact monitoring; and (iii) cumulative impact monitoring. 164. External Monitoring: 1) In conjunction with internal monitoring by MPWT DOW staff, it will be important to include procedures for external monitoring and evaluation (M&E). The external M&E function aims to provide regular monitoring and evaluation of land acquisition and land donation for the project to assess whether objectives were achieved or not. Through formal surveys, interviews with PAP and PAH, focus group discussion (FGD) and other information collection methods, the external M&E function would look at the whole process of land acquisition or land donation for PAP and PAH. The external monitoring will also provide an early alarm function for the project management department and a

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complaint and grievance channel for PAP and PAH. External monitoring indicators will include: a) Progress: including the preparation of the ARAP1/RAP, and implementation of compensation; b) Quality: including to what extent PAP and PAH are satisfied with compensation and restoration; c) Compensation Fund: including the payment and use of the funds for land acquisition compensation; d) Affected People: including PAP and PAH socio-economic situation before and after the project and economic restoration of the affected people; e) A qualified external monitoring entity will come from an independent organization, such as a civil society organization (Non-Profit Associations [NPA], CBO), academic research institute or consultancy in Lao PDR. The major responsibilities of the external monitoring organization will include: • Develop the ARAP1/RAP in conjunction with the internal monitoring team; • Observe all the aspects of the ARAP1/RAP and its implementation; provide M&E reporting to the World Bank through the PRO; and • Provide technical consulting services to the PRO in terms of information investigation and processing. 14 Attachments

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