MINISTRY OF TRANSPORTATION VIETNAM EXPRESSWAY CORPORATION

Public Disclosure Authorized – Quang Ngai Expressway Development Project

(Credit No. 4941-VN/4942-VN)

SU- RAP FOR HOA VANG , DA NANG CITY

CONSULTING SERVICE: UPDATING THE RESETTLEMENT ACTION PLAN FOR REMAINING SUBPROJECTS (SU-RAP)

Public Disclosure Authorized UNDER THE CONTRACT CS1 – CONSTRUCTION SUPERVISION CONSULTANT

Public Disclosure Authorized

Prepared by VEC December 2017 Public Disclosure Authorized

MINISTRY OF TRANSPORT VIETNAM EXPRESSWAY CORPORATION

Da Nang- Quang Ngai Expressway Development Project (Credit No. 4941-VN/ 4942- VN)

SU- RAP FOR HOA VANG DISTRICT, DA NANG CITY

CONSULTING SERVICE: UPDATING RESETTLEMENT ACTION PLANS FOR REMAINING SUBPROJECTS (SU-RAP) UNDER THE CONTRACT CS1 - CONSTRUCTION SUPERVISION CONSULTANT

PROJECT OWNER CONSULTANT FIRM

DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

TABLE OF CONTENTS

PART I: INTRODUCTION ...... 1 A. Project Overview ...... 1 B. Scope of Impacts by the project ...... 1 C. Current Status Of Compensation And Support ...... 2 D. Objectives of the Report ...... 3 PART II: RESETTLEMENT DUE DILIGENCE REVIEW ...... 4 A. Detailed Measurement Survey (DMS) ...... 4 B. Socio-Economic Situation Of Surveyed Households ...... 8 C. General Assessment On Land Acquisition, Compensation And Resettlement ...... 12 D. Compensation and Assistance ...... 12 E. Description of Replacement Cost Survey (RCS) implementation ...... 12 F. Development of Resettlement Areas ...... 14 G. Income Restoration Program ...... 15 H. Grievance redress mechanism ...... 16 I. Information disclosure and community consultation ...... 17 J. Monitoring ...... 19 K. Supervision by World Bank ...... 20 L. Compliance Matrix ...... 21 M. Corrective Action Plan ...... 38 PART III: ANNEXES ...... 40 Annex 1: Template of Questionnaire for Socio-Economic Survey ...... 41 Annex 2: Minutes of public consultation ...... 50 Annex 3: Replacement Cost Survey and Regulations on implementation of Compensation, Assistances and Resettlement in Da Nang city ...... 52 Annex 4: Minutes of Handing-over of Cleared Land to the Project ...... 56

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

LIST OF TABLES

Table 1: Summary of Impacts of the Project in Hoa Vang district ...... 2 Table 2: Type of affected land in each commune ...... 5 Table 3: Number of affected graves by the project, section across Hoa Vang district ...... 5 Table 4: Costs for compensation, assistance and resettlement – HoaVang district ...... 6 Table 5: Summary of socio-economic information of communes in HoaVang district ...... 9 Table 6: Summary of information on affected persons ...... 10 Table 7: Summary of educational level of household heads ...... 10 Table 8: Summary of average income/person/month of affected households ...... 11 Table 9: Decisions on Replacement Price In Hoa Vang District ...... 13 Table 10: Scope of Resettlement Areas ...... 14 Table 11: Number of affected households by construction of resettlement areas ...... 15 Table 12: Consultation time and locations ...... 18 Table 13: Summary of discussions and comments at consultation meetings ...... 19 Table 14: Issues identified by the Banks and VEC’s response ...... 20 Table 15: Compliance Matrix ...... 22 Table 16: Corective Action Plan ...... 38

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

ABBREVIATIONS

CPC Communal People’s Committee DPC District People’s Committee DARD Department of Agriculture and Rural Development DOC Department of Construction DOF Department of Finance DONRE Department of Natural Resources and Environment DPI Department of Planning and Investment DOT Department of Transport DMS Detailed Measurement Survey AH Affected household EMA External Monitoring Agency FS Feasibility Study GoV Government of Vietnam IDA International Development Association – World Bank IOL Inventory of Loss LURC Land Use Right Certificate LFDC Land Fund Development Center MOLISA Ministry of Labor, Invalids and Social Affairs MOT Ministry of Transport NGO Non-Government Organization PPC Provincial People’s Committee RCS Replacement Cost Survey RAP (or RP) Resettlement (Action) Plan SES Socio-Economic Survey TOR Terms of Reference USD US Dollar VND Vietnamese dong WB World Bank WU Women Union

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

DEFINITIONS

Affected Person(s) Affected Person(s) (APs) are the persons who are affected by WB- (APs) funded projects, resulting in: a. Relocation or loss of residence; b. Loss of assets or ability to access such assets; c. Loss of income sources or means of livelihood, regardless of relocation; and d. The involuntary restriction of access to legally designated parks or protected areas causing adverse impacts on their livelihoods; Involuntary Unavoidable resettlement losses resulted by a development project in resettlement which affected people have no option but to rebuild their lives, incomes and asset bases elsewhere.

Resettlement Additional support provided to APs who are losing assets (particularly Assistance productive assets), incomes, employment or sources of living, to supplement the compensation payment for acquired assets to achieve, at a minimum, the full restoration of living standards and quality of life same as their pre-project condition.

Cut-off date The date after the project is approved when the project boundaries are marked on the ground and announced to APs and local people. Affected persons and local communities will be informed of the cut- off date for each Project component, and any persons moving into the project area after that date will not be entitled to compensation and assistance under the Project.

Detailed The finalization and/or validation of the results of the inventory of Measurement Survey asset losses (IOL), severity of impacts, and list of APs done during the (DMS) preparation of the final resettlement plan.

Compensation Payment in cash or in other forms for impacts on land, houses, income and other affected assets due to land acquisition for the project implementation.

Entitlements The range of measures comprising compensation, assistance, income restoration support, transfer assistance, income substitution, relocation and resettlement support, which are owed to the APs to restore their economic and social base depending on the type and severity of their losses.

Host community The community is living at the project area, in the proposed resettlement sites.

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

Income The restoration and/or improvement of income sources and restoration/Livelihood livelihoods of relevant APs. improvement

Land Acquisition The process by which the State issued administrative decisions to acquire the land-use rights or land allocated to users as regulated.

Relocation/ Relocation means APs’ movement away from their old residence and Resettlement Site resettlement site means a new residence of APs.

Replacement Cost The amount of money, which is needed to replace an affected asset and cover the transferring costs for such assets, including costs of materials and labor forces as follows: a. Replacement cost definition is used to calculate the compensation payment for an affected asset based on the market prices plus transferring costs including taxes, costs of transportation and labor force, etc. (OP 4.12, note 11). Market prices are determined by the PMU with the confirmation of the local authorities and consultation with the affected persons. The methods of determining current market prices should be updated from time to time; b. Houses and other related structures based on current market prices of materials and labor without depreciation or deductions for salvaged building materials plus fees for obtaining the ownership papers; c. Standing crops based on the current market value of the crop at the time of compensation; d. Perennial crops and fruit trees will be compensated by cash equivalent to the current market value given for the type, age and productive value of such trees (future production) at the time of compensation;

Replacement Cost The process involved in determining the replacement cost of land, Survey houses and other affected assets based on market surveys.

Vulnerable Groups Individuals or distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of land and property recovery or resettlement and specifically includes: (i) households falling under the current MOLISA benchmark poverty line, (ii) households with martyrs, wounded soldiers, people's armed forces heroes and labor heroes, and families with those who sacrificed for the revolution; (iii) Any additional groups determined by Socio-Economic Survey and public consultation.

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

EXECUTIVE SUMMARY Introduction 1. On 10/9/2010, Ministry of Transport issued the Decision No. 2656/QD on approval of Da Nang - Quang Ngai Expressway Development Project with a total investment of US$1,472 billion (equivalent to VND 28,000 billion) from loans of World Bank (WB), Japan International Cooperation Agency (JICA) and counterpart fund of the Government of Vietnam, with a total route length of 139.2km and 4 lanes in the phase 1 and expansion of 6 lanes in the phase 2. 2. The Construction of Da Nang - Quang Ngai Expressway Development Project affected 13 districts/towns of three (3) provinces/cities of Da Nang, Quang Nam and Quang Ngai. Scope of Impact by the Project 3. Resettlement Action Plans (RAP) for three provinces of Da Nang, Quang Nam and Quang Ngai was adopted by WB and the Government in June 2010 and amended in June 2011. The RAP prepared based on the basic design and initial Inventory of Loss (IOL) should be updated in accordance with the detailed design and Detailed Measurement Survey before carrying out compensation, site clearance and construction. According to regulations of the Government of Vietnam, the compensation, support, resettlement and site clearance under the Da Nang-Quang Ngai Expressway Development Project have been decentralized to district level. Accordingly, SU- RAP for each respective district/city shall be prepared, so 13 SU-RAP is expected to be prepared. 4. The report describles the project impacts on three communes (Hoa Nhon, Hoa Phong and Hoa Tien) of Hoa Vang district, Da Nang city only. The Detailed Measurement Survey (DMS) implemented by the Land Fund Development Center of Hoa Vang district and they confirmed that total acquired land area is 866,347 m2 including residential land, agricultural land, cemetery land and etc. used by 1,721 households and 03 Commune People’s Committees (CPCs). A large number of affected households lose more than one type of property such as land, structures/ buildings, and annual trees and crops. There are 468 households entirely affected with residential land and houses and shall be relocated. In addition, there are 118 affected graves that need to be removed. 5. As of 06/2017, the land acquisition activity has basically completed and all acquired land have been turned over to the Project, for construction. Otherwise, implementation of the compensation, support and resettlement for Hoa Vang district has fulfilled 99% due to some on-going additional supports for relocation and vulnerable households. Therefore, the DDR is prepared for this Hoa Vang district. Resettlement Due Diligence Review 6. As above mentioned, total 866,347 m2 land of 1,721 AHs and 03 Communal PC have been acquired and handed over to the project. Regarding to payment of compensation packages, though the compensation budget is available, 15 households haven’t received yet their compensation and supporting costs, because of their absence (12 land users were not identified and other 03 HHs are on long-term business trips). Total compensation and support cost for these unreceived households is 10 billion VND (equivalent to 500,000 USD).

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

7. The DD reviewed and indicated that the project pending issues consist of (i) 10 additional support packages for house rentals, subsistence for AHs in Hoa Nhon, etc., is under approving procedure and (ii) 06 cases with inaccuracy of DMS and 31 case who are suffering from flooding due to the expressway construction in Hoa Phong and Hoa Tien commune are being undergone with DMS. Expectedly, the issue will be completely handled to in Quarter IIIs, 2017. 8. Basic infrastructures have been built in three resettlement areas. As of June 2017, there are 397/468 relocated households have received land lots in i) Hoa Nhon Resettlement Site (about 14 ha), Resettlement Site along Hoa Tho Tay-Hoa Nhon road (10.2 ha) and Le Son 1, Hoa Tien Resettlement Site (9.8ha). Remaing 71 AHs opted for self-relocation. Corrective Action Plan and Implementation Arrangements 9. Due Diligence report is prepared and to send to EPMU/VEC for review, before submitting to WB for approval. After DDR endorsed by the Bank, Da Nang City’s Land Fund Development Center will make compensation, assistance payments, and resettlement for affected people and implement site clearance for construction. 10. Due to pending issues, Corrective Action Plan is proposed, which includes (i) additional supporting packages for 10 households who requested additional supports for livelihood stabilization and (ii) conducting DMS for above mentioned 37 cases. It is confirmed that this will be carried out by Da Nang city and to be completed by Q3/2017 11. Non-compliance issues and activities proposed by corrective action plan will be assigned to EPMU. They will coordinate with other shareholders in Da nang City to review, prepare additional supporting packages and to compensate for households, expectedly before 15/10/2017.

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

PART I: INTRODUCTION

A. Project Overview 1. Da Nang - Quang Ngai Expressway Development Project, which is part of North-South Expressway, is set up to improve traffic system through creation of a safe road for vehicles with heavy transport and high speed and management of institutional strengthening for expressway system. In long term, this route also serves a variety of strategic objectives as contribution to improving environment, reducing traffic congestion and accidents on National Highway 1A, saving travel time between localities and complement of international transport connections of economic triangle (Laos - Cambodia - Vietnam) via East-West economic corridor to ports in Central area of Vietnam. Thus, Vietnam will have many investment opportunities and promote development of key economic regions in the Central, contributing to improving people’s lives in the country in general and 3 provinces/cities of Da Nang, Quang Nam and Quang Ngai in particular. Besides, the route also has significant meaning to emergency aid for the Central People who have frequently suffered from floods and have been affected severely. 2. On 10/9/2010, Ministry of Transport issued the Decision No. 2656/QD-BGTVT on approval of investment Project with the following main contents: ❖ Total project cost is US $1,472 billion (equivalent to VND 28,000 billion) funded by WB, Japan International Cooperation Agency (JICA) and counterpart fund of Government of Vietnam. ❖ Time of implementation in Phase 1 (4 lanes) is from 2011 to 2016. ❖ Client is Vietnam Expressway Corporation (VEC). ❖ Project Management Unit: - Project Management Unit 85 (PMU85): section from KM0 - KM65; - Project Management Unit 1 (PMU1): section from KM65 - KM131. ❖ Technical design unit, bid support as the Consortium of Nippon Koei Consultancy Company, Nippon Engineering Consultants, Chodai and Thai Engineering Consultants.

B. Scope of Impacts by the project 3. Da Nang- Quang Ngai Expressway Development Project goes through Hoa Nhon, Hoa Phong and Hoa Tien communes, Hoa Vang district with total length of 8.0 km. While measures to minimize permanently affected land area were studied and evaluated, land acquisition for the project construction is unavoidable. In addition, during the project construction, another land area will be temporarily affected by construction activities of the contractor. The temporarily affected area will be updated in detail in the implementation stage.

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

Table 1: Summary of Impacts of the Project in Hoa Vang district

Items Unit Scope of Impacts

1. Affected households (HHs): HHs 1,721

Member of Ahs Persons 7,070 In which1 - Households impacted with residential land HHs 468 + Partial impact HHs 136 + Total impact HHs 332 - Households impacted with agricultural land HHs 1,252 + Households losing less than 20% HHs 834 + Households losing 20% or more HHs 418 - Other affected land (managed by commune/ PCs) HHs 3 2 2. Affected area M 866,347 In which + Residential land m2 145,351 + Land of religious institutions m2 587 + Agricultural land m2 639,440 + Others (public land) 80,969 3. Displaced households HHs 468 4. Households affected with graves HHs 47 5. Affected business households HHs 27 + Registered business households 15 + Non-registered business households 12 6. Vulnerable households HHs 123 + Poor households 21 + Social Policy families 40 + Households with disabled persons 20 + Women headed households 42 (Sources: DMS, 06/2017) Notes: Several households might lose more than one type of land; therefore, total number per land type may be greater than total actual number of AHs. C. Current Status Of Compensation And Support 4. At the time of the report preparation, entire 866,347 m2 affected area have been acquired and turned over to the project. Otherwise, compensation for the land area and on-land assets has completed for 99 percent (%), because (i) 15 HHs have yet to receive due to their absence; (ii) additional supports for 10 HHs who have received compensation and support based on their

1 Several households might be affected more than one type of land; therefore, total number per land type may be greater than total actual number of AHs.

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City entitlements, then request additional supports for their livelihood rehabilitation; and (iii) conducting DMS for other 37 case due to inaccuracy of current DMS and arraising issues (the parcel of land is not located in the espressway area, but suffering from flooding due to construction of the road). D. Objectives of the Report 5. Resettlement Action Plans for 3 provinces/cities including Da Nang, Quang Nam and Quang Ngai were cleared by the World Bank and the Government of Vietnam in March 2010. However, the RAPs were prepared based on basic design and initial inventory of loss (IOL), thus the database was unclearly identified, and it should be updated according to detailed design and DMS before conducting compensation, site clearance and construction commencement. In which, DMS is implemented separately in different districts, thus, updated RAPs shall be implemented according to each responding district (SU-RAP). 6. On 13/9/2013 VEC submitted a proposal to World Bank for approval on the advance payment for compensation by PCs of participating province. On 05/10/2013, the approval on the implementation of compensation and site clearance for impacts/influences without displacement of AHs was issued. Up to date, the compensation for the district has been basically completed. Thus, to ensure the compliance with the policies on compensation, assistance and resettlement as specified in DQEP’s resettlement policy framework and RAP which was prepared and approved for Dang Nang city; by the Aide Memoire dated October 2015 on preparation of Due Diligence Report on compensation, assistance and resettlement and updating of remaining subprojects (AHs have not been compensated), thereby, the updated Resettlement Action Plan for Hoa Vang district is prepared. 7. The SU-RAP of Hoa Vang district, Da Nang city aims to (i) summarize actual impacts of the project’s work items in all affected communes of Hoa Vang district (ii) assess the compliance with policies specified in RAP in terms of advance payment for compensation as proposed by VEC and clarify the differences (if any) and propose settlement solutions, and (iii) prepare a corrective actions and implementation schedule.

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DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

PART II: RESETTLEMENT DUE DILIGENCE REVIEW

A. Detailed Measurement Survey (DMS) 8. DMS in Hoa Vang district has been carried out from 2011 to date. Currently, 192 compensation options (or called plans) have been prepared by relevant agencies. 9. The process of detailed measurement survey (DMS) has been well done in all affected communes. The affected households were informed of the time of DMS and they were involved in all steps of DMS and signed DMS minutes. Land measurement was mechanically conducted by companies and made into cadastral mapping of localities. The DD results showed that 100% of surveyed households confirmed that they involved in the DMS and signed DMS form. Over 98% of surveyed households confirmed that DMS figures for their affected assets are correct. They said that DMS results have been disseminated publicly to households. Some cases such as insufficient measured data, incorrect identification of land origin, incorrect determination of the age of trees and etc. were reflected directly with CPCs or DMS officials. For incorrect measurement of affected area claimed by 06 households in Hoa Tien communes, the review and measurement will be re- conducted in the end of 07/2017 by the implementing unit. 1. Summary of Impacts on Land and Structures in Hoa Vang district 10. The acquired land area by the project is 866,347 m2 of 1,721 HHs and 3 PCs. a) Impacts on land - There are total 1,721 affected households due to permanent land acquistion, in which: Area of residential land (ONT) is: 145,351 m2, of all 468 HHs affected with residential land, there are 332 severely affected households as losing the entire residential land and structure on land. - Religious land: 587 m2 - Agricultural land: 639,440 m2; there are total 1,252 households affected with agricultural land, including 418 severely AHs (affected from 20% or more cultivated land area). - Affected public land: 80,969 m2 belonging to 3 communal PCs; the land includes specialized land, river and stream land, surface water and cementary land. b) Works: - Structures: There are 332 severely AHs due to loss of all structures, 136 households lost part of structures, 468 households affected with auxiliary works. - Trees and crops: The implementation of the project will affect trees and crops of 1,721 households, in which there are 502,540 m2 of rice field and crop cultivated land. Besides, there are 12,914 trees of all types affected (including 6,780 fruit trees and 6,134 timbers). d) Impact on business - Of all 1,721 households affected by the project, 27 business households are affected by the project execution. e) Vulnerable groups

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- Out of 1,721 AHs, there are 123 HHs are the vulnerable, of which there are 21 poor households, 40 policy households, 20 households with the disabled and 42 woman-head households with dependents. 11. Details about impacts on land of communes are presented in the table below: Table 2: Type of affected land in each commune

Residential Agricultural Religious Public No. Communes Unit Total land land land land m2 123,977 198,588 587 33,349 356,501 1 Hoa Nhon HH 371 486 1 PC 858 m2 21,374 423,386 - 10,082 454,842 2 Hoa Tien HH 97 722 - PC 819 m2 - 17,466 - 37,537 55,003 3 Hoa Phong HH - 44 - PC 44 m2 145,351 639,440 587 80,969 866,347 Total HH 468 1,252 1 PC 1,721 (Sources: DMS, June 2017) (Notes: Several households might have more than one type of land; therefore, total number per land type may be greater than total actual number of AHs). 2. Impacts on Public Works 12. During the implementation of the Detailed Measurement Survey (DMS), Hoa Vang Land Fund Development Center identified various public works (as of irrigation canals, electricity line, …) to be affected by Da Nang- Quang Ngai Expressway Development Project. Then, relocation and restoration of these public works were carried out before the construction stage, with supports from the VEC and Da nang city. 3. Impacts on Graves 13. Total 118 affected graves owned by 47 households were removed. As time of June 2017, all households and organizations whose graves are affected by the project, section across Hoa Vang district, were provided with sufficient amount of compensation and support and already moving graves to 02 central burial complex at locality. Table 3: Number of affected graves by the project, section across Hoa Vang district No. of affected No. of graves to No. of displaced No. Communes households, be displaced graves organizations 1 Hoa Nhon 16 34 34 2 HoaTien 31 84 84 Total 47 118 118 (Source: Detailed Measurement Survey, June2017)

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4. Total Cost For Compensation And Assistance 14. The budget for compensation and assistance in Hoa Vang district, Da Nang city is 476,965,000,000 VND, equivalent to USD 22.18 million. All compensation, support and resettlement costs of the project are allocated from counterpart funds from the Government of Vietnam. VEC is responsible for working with the Ministry of Planning and Investment (MPI), Ministry of Finance to arrange adequate fund for the implementation of the updated RAP. 15. Unit price for compensation is based on replacement cost prepared by an independent valuation agency. This rate is promulgated by Da Nang City People’s Committee at the Decision No. 8213/2013/QD-UBND dated 23/11/2013 and Decision No.6885/QD - UBND dated 10/10/2016 and applied to for the compensation and site clearance under Da Nang – Quang Ngai Expressway Development Project, section through the HoaVang section of Da Nang city. 16. Compensation and resettlement budget includes the costs of preparation and implementation of resettlement plans, management, and internal monitoring of resettlement. VEC is responsible for hiring external monitoring consultants for the whole project, as this cost is not mentioned in Table below. Detailed fund allocation for implementing compensation, supports and resettlement in Hoa Vang District, Da Nang City is provided as follows: Table 4: Costs for compensation, assistance and resettlement – HoaVang district

No. of Volume (m2)/ No. Items Amount AHs Unit cost A Land 894,996.1 213,041,511,400 Affected residential land 468 82,867.9 99,441,480,000 Affected agricultural land 1,252 680,308.9 104,767,570,600 Support handover for households 253 52,049.5 3,560,185,800 Public land (transport, irrigation land) 3 9,472.8 - B Works, structures 78,911,961,123 1 House (m2) 468 28,214 55,017,300,000 2 Kitchen (m2) 1,245 1,862,520,000 3 Auxiliary works (m2) 456 577,549,200 4 Wall (m) 9,528 3,611,112,000 5 Yard (m2) 15,872 4,523,520,000 6 Water tank (m3) 125 63,125,000 7 Gate pier 1,312 852,800,000 8 Graves 118 3,047,934,923

C Trees, Crops 7,037,763,000 1 Trees 1,860 234,674,000 2 Crops (Rice) 680,309 6,803,089,000 D Subtotal 1 D = A+B+C 298,991,235,523 E Allowances 20,839,300,000 3,000,000 468 1,479,000,000 1 Moving, resettlement VND/HH

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1,500,000 468 VND/HH/month 4,437,000,000 2 House rental for displaced households *6 months 3 Subsistence 1,252 8,000 VND/m2 4,506,480,000 3,000,000 21 39,000,000 5 Supporting poor households VND/HH 3,000,000 45 135,000,000 6 Supporting business households VND/HH 2,500,000 1,721 4,400,000,000 7 Incentive bonus VND/HH 8,000,000 493 3,944,000,000 VND/HH F Subtotal 2 F = D + E 319,830,535,523 G Management Cost 31,983,053,552 1 Implementation arrangement (2%) Equivalent (2%) 6,396,610,710 Contingencies 25,586,442,841.8 2 Contingencies (8%) 8% 2 H Grand Total H = F + G 351,813,589,075 Round 351,810,000,000 17. In addition, as proposed by Land Fund Development Center of Da Nang city, the costs for compensation, support and resettlement will be added with 02 more contents: • Amount for 71 households arising self-relocated: 50 billion (VEC transferred money in March 2017) • Amount for arising difficulties, compensation for houses and land: 10 billion VND (additional budget is allocated for payment of: i) 10 options in difficult situations; ii) 01 residential land lot of 268 m2 of Mrs. Duong Thi Chinh’s in Hoa Phong commune and 06 land parcels that need to be re-measured in Hoa Tien commune. 18. Therefore, the cost of compensation for Da Nang – Quang Ngai Expressway is VND 411,810,000,000 (Four hundred and eleven billion, eight hundred and ten million Vietnamese dong). This doesn’t include cost for construction of 03 resettlement sites of the project, which estimates at around VND 65,155,000,000. 5. Pending Cases 19. As time of June 2017, all AHs in Hoa Vang district were compensated and supported, then turned over their cleared land to the project. According to consultations results with the representatives of wards authorities, the AHs agreed with the project implementation. However, some households have requested for additional supports. They are:  Hoa Nhon Commune: 10 additional support plans for affected AHs as of house rental, subsistence and so on is under approval process.  Hoa Phong commune: Mrs. Duong Thi Chinh (Mr. DuongThuy’s daughter) is using land plot No.94, with an area of 268 m2, rice land with household registration book (LURC).

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Now the land plot is not economica viabe for agricultural productive use because of being flooded as result from the project construction. She requested the Site Clearance Compensation Committee to acquire entire plot of land. However, the Site Clearance Compensation Committee had not resolve because the land lot is outside the project ROW. So far, the Committee only provides hers with crop supports but not acquire the entire land lot. People’s Committee of Hoa Phong commune also requested the Site Clearance Compensation Committee to acquire entire land area owned by Mrs. Duong Thi Chinh to ensure subsistence of her family.  Hoa Tien commune: (i) 06 cases with incorrect data of land measurement have not been resolved yet. Commune People’s Committee requested re-measuring the affected land area of these 06 households; (ii) 30 cases with distorted cultivated land area which is not economica viable for production after acquisition. These households requested the Compensation Committee to acquire the entire land acquisition, however, up to date, these cases have not been resolved yet; 20. During the construction process, there are also some impacts or damages on some infield traffic roads and local roads in Hoa Tien commune. Hoa Tien Commune People’s Committee requested the construction unit to reinstate these roads for the locality.

B. Socio-Economic Situation Of Surveyed Households 21. Socio-economic and resettlement survey has been conducted for 518 households, accounting for 30% of total affected households in 3 communes including Hoa Nhon, Hoa Phong and Hoa Tien. In which 268 AHs lost 20% or more of the total land area and 250 severely AHs (155/493 relocated households and 95/418 households lost 20% or more of the total land area). The household questionnaire has been developed based on the actual conditions, the awareness level of AHs. In each commune, the Consultant carried out one group discussion and in-depth interviews with relevant officials, including: Commune People’s Committees, representatives of Women's Union, Farmer’s Association, and Commune-level Fatherland Front. In addition, relevant documents have been studied and collated for the best socio-economic survey results. The socio- economic characteristics of the affected areas and affected people are as follows: 1. Socio-economic Characteristics Of Affected Area 22. Da Nang city is in a strategic position as the middle of the country, it borders Thua Thien Hue province to the North, Quang Nam province to the West and the East Sea to the East. The city is 759 km away from Ha Noi to the North and 964km away from to the South. Da Nang is the largest transportation local point in the Central Region in terms of railways, waterways, roads (National Highway 1A, 14B), and international air routes. 23. Total area of Da Nang city is about 1,283 km2, of which the inner-city area is 241.51 km2; The city consists of 6 districts of Hai Chau, Thanh Khe, Son Tra, Ngu Hanh Son, Lien Chieu and Cam Le; 2 suburban districts of HoaVang and Hoang Sa. 24. In 2015, the average population of Da Nang city is 1,029,110 people, increasing by 21,457 persons compared to 2014, and the growth rate represents 2.1%. At the time, the gap between living conditions of urban and rural resident tends to be greater. Average income in urban area is 3,818 thousand VND/person/month, increasing 5.62% compared to 2014; meanwhile, the average income of the rural population is 2,180 thousand VND/person/month, increasing 3.07% in

Page 8 of 70 DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City comparison with 2014. The workforce aged 15 to 24 years old accounts for 14.1% of total labor force, increasing 2.1 percentage points over 2010 but still lower than the national average level (14.9%). 25. Hoa Nhon commune is located in the North of the Hoa Vang district administrative center, with a total natural area of 32.59 km2, total population of 14,838 people, 4,080 households and a population density of 396 people/km2. The commune has 3 agricultural service cooperatives, with 15 villages in which 7 villages are along the Tuy Loan river, adjacent to Hoa Phu commune, 8 villages running along the mountain sides, bordering Hoa Son commune, 7 villages are recognized as a city-level historical relics. 26. Hoa Phong commune is located in Hoa Vang district administrative center, it borders Hoa Tien commune to the East, Hoa Khuong commune to the South, Hoa Nhon commune to the North, Hoa Phu commune to the West. The commune is run through by National Highway14 b, Road 14 g, the road ADB 5. The natural area of the commune is over 18.59 km2, with a population of 16,259 people, 4,140 households, in which more than 70% are agricultural production households. There are 15 villages and 91 residential groups in the whole commune. 27. Hoa Tien commune is located in the of Hoa Vang district, about 13km away from Da Nang city center and 5.6km from Hoa Vang district’s administrative center; it borders Hoa Chau commune to the East, Hoa Phong and Hoa Khuong commune to the West, Hoa Tho Tay commune to the North (Cam Le district), and Dien Tien commune (Quang Nam province) to the South. Total area of the commune is 1,394 hectares, in which agricultural land area is 807 hectares. Hoa Tien commune includes almost all types of terrain: mountains, hills, creeks, countryside, sand dunes, etc. The whole commune has 12 villages, 4,151 households with 16,522 people. 28. In terms of agriculture, local people are mainly engaged in livestock breeding in small scale, cultivation of rice maize, potato, cassava, etc. Agro-forestry and fishery production accounts for a small scale. 29. In 2015, there is total number of 1,235 poor and near poor households in the 03 communes. The poverty percentage is 4.1% (509 households). Average income/person/year is 30.5 VND million/ person/year (Hoa Nhon commune); 30.4 VND million/person/year (Hoa Phong commune) and 31 VND million/person/year. Detailed socio-economic situation in communes is shown in the following table: Table 5: Summary of socio-economic information of communes in HoaVang district

No. of average No. of HH EM people Average Communes No. of HHs main members (%) scale/HH labors/HH Hoa Nhon 3,980 14,838 0 3.8 2 Hoa Phong 4,140 16,259 0 3.9 2.2 Hoa Tien 4,151 16,522 0 4.0 2.7 Total 12,171 47,619 0 3.9 2.3 (Source: Socio-economic survey, June 2017)

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2. Socio-economic characteristics of affected persons ❖ Characteristics of household members 30. Out of 518 surveyed households, there are total 2,057 household members; the average household size is 4 people per household. Of which, female percentage accounts for 50.7% of total AHs. The number of people in working age at from 19 to 60 years old represents 40.7%. Details are as follows: Table 6: Summary of information on affected persons Communes No. of No. of Percen Age (%) HHs person tage of s female 0-5 6-18 19-35 36-60 above 60 Hoa Nhon 216 865 51.2 19.3 25.6 22.7 17.5 14.9 Hoa Phong 79 324 50.4 18.5 24.8 23.3 18.3 15.1 HoaTien 223 868 50.5 18.6 25.9 22.5 17.8 15.2 Total 518 2,057 50.7 18.8 25.4 22.8 17.9 15.1 (Source: Socio-economic survey June 2017)

❖ Educational level 31. According to survey data from 518 AHs, the average rate of household heads graduated from primary school is 8.7%, these persons are mostly older than 60 years old. The number of people with college or university degree accounts for 13.7% of total AHs. Summary of educational level of AHs is shown below: Table 7: Summary of educational level of household heads Commune Primary school Secondary school High school College/ Total university Hoa Nhon 8.6 44.8 32.3 14.3 100 Hoa Phong 8.4 45.6 32.2 13.8 100 Hoa Tien 9.2 45.3 32.4 13.1 100 Average % 8.7 45.3 32.3 13.7 100 (Source: Socio-economic survey June/2017)

32. Through the survey, educational level of affected household’s members in the project area: 8.4% of primary school graduation (mostly the elderly people is over 60 years old). 45.9% of secondary school graduation, 33.3% and 10.4% of high school and college/university, respectively; the number of post graduated person makes up 2.1% and the illiterate/uneducated represents 0%. ❖ Occupation 33. Survey results from 518 AHs show that average income of the households ranges from 1.5 to 2 million VND/person/month, the percentage of households with main income source from agriculture accounts is 55.5%; however, the income is only brought by household heads, excluding other sources from their children. In addition, the survey results found that apart from farming time,

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76.6% of household heads still had time to work on other occupations to increase their income, including brick layers, freelance, etc. Therefore, in fact, the number of households mainly living on agriculture is insignificant. 34. For members at working age, in addition to 518 interviewed household heads, 393 people are in working age. According to the survey, 38.5% of household members are workers, civil servant (151 persons), followed by 36.2% of household members as free labors and employed workers (143%), 18.9% of members work with small business and services, (75 persons), the remaining 6.4% (24 persons) are unemployed and housewives. ❖ Income 35. The main income of AH heads is from agriculture production and forestry (55.5%); civil servant (24.1%), business (12.6%), free labor and workers (7.8%). The average income/person/year of AHs is as follows: Table 8: Summary of average income/person/month of affected households Average income/person/month (VND) Communes <500,000 501,000- 1,201,000- 2,501,000- > Total 1,200,000 2,500,000 4,000,000 4,001,000 Hoa Nhon (%) 0 2.3 45.4 36.1 16.2 100 Hoa Phong (%) 0 2.5 36.7 44.3 16.5 100 Hoa Tien (%) 0 2.7 45.7 38.1 13.5 100 2.5 42.6 39.5 15.4 100 (Source: Socio-economic survey June 2017)

36. However, the survey found that the main income source of households is not from agriculture. Specifically, only 81 households (15.7%) live on farming, 205 households (39.5%) gain main income from jobs as workers and civil servants, 136 (26.3%) households count on small business operation, the remaining 96 households (18.5%) have the main income from free labor and hired employment. ❖ Water use 37. The survey results show that 100% of AHs use tap water and water from deep drilled wells for their daily activities such as eating and bathing. No household has to beg water from neighbors. In the project area, all households no longer use water from ponds and lakes for living and eating. ❖ Toilets 38. 100% of households own hygienic toilets. The majority of households use septic toilets in their families, accounting for 86%, and the number of households using the two-compartment toilet occupies 14%. There is no household using of public toilets or without toilets. ❖ Waste collection and environmental sanitation 39. Waste collection - environmental sanitation: Currently, 100% of communes in the project area have established waste collection system which has been efficiently implemented with a frequency of garbage collection of once a day. ❖ Electric use

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40. All AHs are connected to the national grid. These households use electricity for lighting and television needs. Charcoal or wood stoves are used for cooking. ❖ Domestic utilities 41. Throughout the field survey, 100% of households own motorbikes and bicycles. The percentage of households with TV and radio and speakers accounts for 98.7% and 76.9 % respectively. The findings show that 62.4% of households use telephones and 15.3% have cars and other machines. ❖ Poor households and vulnerable households 42. Out of 518 surveyed AHs, there are 13 vulnerable households who are the poor, and there are no households with the elderly, female headed households, policy households or households with the disabled. Ethnic minority households are not found in the affected area.

C. General Assessment On Land Acquisition, Compensation And Resettlement 43. Total land acquired for the Da Nang-Quang Ngai Expressway Development Project, section through Hoa Vang district is 866,347 m2. As of June 2017, Hoa Vang district Land Fund Development Center has acquired all 866,347 m2 and compensated and supported to 1,721 affected households and 03 communal PCs. During the DD review, it is confirmed that there are some pending cases including: 10 additional support packages for house rentals, subsistence for AHs in Hoa Nhon, etc., is under approving procedure and (ii) 06 cases with inaccuracy of DMS and 31 cases which are suffering from flooding due to the expressway construction in Hoa Phong and Hoa Tien communes.

D. Compensation and Assistance 44. At the time of the field survey in June 2017, a total of 866,347 m2 owned by 1,721 households and three (03) CPCs were provided compensation and assistance. Total paid cost was VND 401,810,000,000. The remaining amount for additional assistance for households is 10 billion. This is additional compensation payment which is envisaged for completion in Quarter III/2017.

E. Description of Replacement Cost Survey (RCS) implementation 45. In accordance with the objectives and principles of the Project’s RPF, as same as Quang Ngai and Quang Nam PPCs, Da Nang City PC issued decisions to implement the main objectives and principles of the project resettlement policy in the context of the applicable national and provincial laws and provisions. The entitlements set forth in the resettlement action plan in 2011 and entitlements approved by the People's Committee of Dang Nang Province are not entirely the same. In some aspect, some entitlements regulated by the Da nang city PC are more preeminent than some in the resettlement action plan in 2011 whereas some under the project provisions have not been applied correctly and sufficiently. Specifically, the local decisions are listed in the below table.

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Table 9: Decisions on Replacement Price In Hoa Vang District

Contents Items 2012* 2013** 2014*** 2015 2016**** 2017

1. Replacement Updated Updated Updated Updated and cost Survey (for and and and approved approved approved approved (co-efficient land, structures and tree, crop…) (co- (co- (co- = 1.0) efficient = efficient efficient = 1.0) = 1.0) 1.0) 2. Compensation options prepared in 192 1 6 51 84 35 15 accordance with each decision 3. No. of AHs 2 listed in each 4,113 HHs 6 22 1,795 1,424 728 138 decision (Source: DMS, 06/2017) Note: 2012*: Decision No. 62/2012/QD- UBND dated 30/12/2011, Decision No. 63/2012/QD-UBND dated 20/12/2012; 2013**: Decision No. 8213/2013/QD- UBND dated 23/11/2013, Decision No. 8348/2013/QD- UBND dated 29/11/2013; 2014***: Decision No. 1789/2014/QD-UBND dated 25/03/2014, Decision No. 4376/2014/ QD-UBND dated 17/12/2014, Decision No. 2512/2014/QD- UBND dated 24/04/2014; 2016****: Decision No. 6885/2016/QD- UBND dated 10/10/2016 46. According to the requirements in the World Bank’s Policy on Involuntary Resettlement (OP 4.12), Replacement Cost Survey should be undertaken to make the basis for calculation of replacement costs for land/trees/assets/structures affected by the project, so Replacement Cost Survey is carried out and a list of additional unit costs for the project is shown in the above table. In detail, on 20/12/2012, Da Nang City People’s Committee issued Decision 62/2012/QD-UBND on regulations on all types of land on the city area and Decision 63/2012/QD- UBND on compensation, assistance and resettlement when the State recovers lands and Decision 8213/QD- UBND dated 23/11/2013 stipulating on unit price for compensation under DQEP in Hoa Vang district. In 2016, for updating the unit prices, the Da Nang city Peoples Committee issued Decision 6885/QD – UBND dated 10/10/2016 of Da Nang City Peoples Committee regulating the compensation unit prices for application in the compensation and site clearance of Da Nang – Quang Ngai Expressway Development Project, section going through Hoa Vang district to replace the compensation unit prices before 2016. 47. Given these Decisions which have been issued and publicized by Provincial Peoples Committee in the project communes, the compensation unit prices applied by the project have been updated annually by an independent pricing valuer, but its result is closed to those prepared in 2013 and perceptions of local people surveyed. Therefore, based on the Bank’s requirements on OP4.12, the DD assessed that the replacement costs applied for the project compensation are unacceptable.

2 Total number of households stated in compensation options may be higher than actual affected households because some households named in various compensation options.

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48. In order to meet the Bank’s OP4.12, in addition to the above-mentioned compensation package, Da Nang city PC have issued many kinds of supporting and allowances as stipulated in Decision No.63/2012/QĐ-UBND (and its amendments, time to time), which presents: a) For AHs who are by loss of productive land: will be provided of (i) subsistence allowance for all AHs and APs who directly joining in agricultural production when the State acquires lands of gardens, ponds (excepting for aquaculture land, forest production land, public land managed by ward/commune PC that is temporary used by households and people) is 8,000 VND/m² regardless of magnitude of land acquired; (ii) support 1.5 times of agricultural land price, but the maximum area to be supported will not be over 4,000 m²/HH (the local quota for land allocation), applicable for both cases. b) For AHs who are by loss of residential land: will be provied of (i) transportation and transitional allowances, house rental, bonus 5-8% of compensation package for quick removal…) c) For vulnerable AHs including HH with meritorious services to the revolution, the poors, disablity…: will be also provided of several types of allowances 49. In conclusion, based on the consultations with local affected people, the DD assessed that the implementation of compensation and assistances in Da Nang city, of which the provision of “other allowances” as metioned in GoV regulations have not met the Bank’s objective of OP4.12. Therefore, aiming at fully meet the Bank’s objective of OP4.12 the VEC will work with Da Nang city and provide additional special support packages that could enable restoring the AH’s livelihood as compared with pre-project conditions.

F. Development of Resettlement Areas 50. Out of 1,721 affected households, there are 468 displaced households (including 371 households in Hoa Nhon and 97 households in Hoa Tien). So far, 397 households have received compensation and handed over the land. 71 households are self-relocated. 51. Displaced households relocate to 03 resettlement sites: Hoa Nhon Resettlement Area (about 14 hectares), resettlement area along Hoa Tho Tay - Hoa Nhon road (more than 10.2 ha) and Le Son 1 Resettlement site, Hoa Tien Commune (0.8 ha). Total number of 1,017 land plots having been allocated for resettlers, 397/468 households have received 516 lots in the resettlement site and already moved in. They also received land use certificates right after 2-4 weeks of measurement and verification. 52. Compensation and support costs for construction of the 03 resettlement sites are VND 60,155,000,000 (Sixty billion, one hundred and fifty-five million dong). The proposed scope for construction of Resettlement Areas is shown in the table below: Table 10: Scope of Resettlement Areas Compensation Total area Number of No Resettlement Area cost (billion (m2) land lots (lot) dong) 1 Hoa Nhon Resettlement Area 139,937 37,041 397

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Compensation Total area Number of No Resettlement Area cost (billion (m2) land lots (lot) dong) 2 Hoa Tho Tay - Hoa Nhon Resettlement 102,610 8,879 362 Area 3 Le Son 1 Resettlement site, Hoa Tien 98,139 14,235 258 Commune Total 60,155 1,017

53. The number of affected households by land acquisition for constructing resettlement site is 715 households, of which 156 households are marginally affected with residential land and garden, they don’t have to relocate, 559 households are affected with agricultural land (420 AHs with less than 20% of total agricultural land affected and the remaining 139 AHs are affected with over 20% land area). Currently, these households have received compensation amount and handed over land for construction. Table 11: Number of affected households by construction of resettlement areas Number of affected households Residential Total Total Agricultural No Resettlement areas Cost land, garden area households land land (households) (households) (households) 1 Hoa Nhon Resettlement 331 139,937 37,041 78 253 Area 2 Hoa Tho Tay - Hoa Nhon 102,610 8,879 154 2 152 Resettlement Area 3 Le Son 1 Resettlement 98,139 14,235 230 76 154 site, Hoa Tien Commune Total 60,155 715 156 559

54. Land acquisition for constructing resettlement sites have been completed by the Da Nang city Land Fund Development Center in 2015; Until now, all 03 resettlement sites have been completed. Households who are subjected to land acquisition for construction of resettlement sites will be entitled to the compensation, assistance and resettlement policies under the Da Nang – Quang Ngai Expressway Development Project. Costs for resettlement sites construction are financed by Vietnam Expressway Corporation (VEC).

G. Income Restoration Program 55. Out of 1,721 affected households, 418 households lose more than 20% of their productive land, and none of them lose more than 70% of their agricultural land. By this survey, it is found that occupation of household heads is mainly in agriculture sector (55.5%); workers (24.1%), business persons (12.6%), freelance and hired employees (7.8%). However, their main income is not from agriculture, because other members of the families work in freelance, services, handicraft and so on with income higher than farming sector. Moreover, because the negative impacts from the project are insignificant while benefits brought about to the community are remarkable, all

Page 15 of 70 DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City households in the area are aware of their benefits such as more job opportunities when more industrial zones are to be invested in. Hence, local people strongly support the project. 56. For the 468 AHs who are subject to relocation, according to survey results, community consultation and assessment of resettlement demand of AHs in the project area, the majority of local residents want to relocate in resettlement sites near their former residence for convenience in living activities and subsistence. Based on the wishes of the people and the local situation, three resettlement sites were built in two communes of Hoa Nhon and Hoa Tien. The results of the consultations show that people highly appreciate the quality of infrastructure of the resettlement sites and the living conditions of the households in the resettlement site is viewed as better than in the previous place. The new place is near with schools, health centers which facilitate the health care and children schooling. 57. In addition, relocated households also hope to receive support for speeding up procedures of land ownership certificate and legal assistance to build a new house and quickly stabilize their lives.

H. Grievance redress mechanism 58. Compliance and effectiveness of complaints are assessed in two aspects: (i) Grievance redress mechanism; and (ii) time for grievance redress. 59. Grievance redress mechanism is developed in RAP and has been already disseminated to affected people through community meetings. The remaining grievances/complaints can be classified to the following types, in order of importance:  Complaints/ grievances on impact on construction activities by the Contractor such as blocking of irrigation channel/flow, crack of house due to rolling/compaction activities, land slide during rainy seasons due to embankment, flood discharge due to blocking by the expressway, split of communities... These complaints account for a large part of the complaints/grievances which remain unsolved and can not be settled right away since the joint cooperation of many agencies is needed for technical issues in deciding addition of frontage roads, culverts.  Addition of supporting as of house rental, allowances, provision of additional plots in the RSs 60. As result of checking grievance documents ans based on discussions with resettlement unit, at the Due Diligence preparation time, there are still 16 pending grievance cases3 in Hoa Vang district of Da Nang city, which are being followed-up and periodically reported by External Monitoring and CS1 Consultants. So the DD assessed that complaint records are filed to keep track of complaint handling progress and that Grievance redress mechanism complies with policy framework of the project. 61. The project has established a mechanism for collecting and resolving specific complaints to ensure affected people’s rights when they are not satisfied or when they encounter any arising problems during the implementation of compensation, assistance and resettlement process of the project. Complaints will be handled by competent staffs and those having direct responsibility Site Clearance Compensation Committee at all levels. In addition, an independent monitoring consultant will be established and work throughout the project to gather information from

3 More detail about these case, please refer to Table 13 bellowed.

Page 16 of 70 DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City conducted field surveys for assisting project owner to be aware of feedbacks from local peoples on related problems as well as consultation for prompt solutions to problems. 62. Through AH’s interview, time for grievance redress on issues relating to AH’s compensation has not been complied with requirements set forth in the policy framework of the project, as well as RAP’s provisions. According to survey’s results, time to resolve complaints has not met households’ expectations, because some households report that it takes a very long time for them to receive feedback on their complaints from related parties.

I. Information disclosure and community consultation 63. In general, information dissemination and community consultation have been carried out throughout the process of project implementation and has been well done in all affected communes. Relevant documents such as Resettlement Action Plan, minutes of Inventory of Loss, approved detailed compensation plan are publicly disclosed and informed local people in the project area, especially affected households. 64. The community consultation process was strictly conducted in accordance with RAP in order to provide necessary information about project information and its benefits to affected households. Information Disclosure and Public Consultation during RAP Preparation 65. Information disclosure and public consultations have been conducted throughout project implementation phase to disclose and introduce about the Project to AHs and communities at the project communes. APs are informed thoroughly of implementation plan of resettlement activities, including: (i) public consultation contents for works, implementation plan, site clearance plan, construction plan, (ii) detailed measurement survey, (iii) official and legal list of affected persons and their entitlements, (iv) compensation volume and compensation rate, (v) compensation payment plan and other allowances, and (vi) other issues such as income restoration program for APs, grievance redress mechanism, monitoring and evaluation. Related information and documents must be made available at PC offices of affected communes/ cultural houses, or posted in easily visible places. Project Information Booklet (PIB) was given to AHs and made publicly at commune People’s Committees, village cultural houses 66. For Da Nang - Quang Ngai Expressway Development Project, information disclosure and public consultations have been carried out throughout the preparatory phase (RAP preparation phase in January 2011) to implementation phase of compensation and resettlement to ensure that affected households and stakeholders are timely informed of land acquisition, compensation and resettlement as well as opportunities to participate and express wishes and concerns related to resettlement activities. According to evaluation survey results during the field trip of Consultants in March 2016, most households responded that they were well-informed and understood about the project as well as the plan of resettlement activities in the district and were fully satisfied with the disclosure of information about the project. Information Disclosure and Public Consultation During DDR Preparation 67. In the process of preparing this DDR, many consultation meetings with affected households and communities who have not been paid compensation and assistance, were hold in June 2017 in

Page 17 of 70 DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City order to discuss and evaluate impacts and ensure that aspiration and feedbacks from local community will be reflected in the Report. 68. As stated in the previous section, at the time of preparing this DDR, most affected households have been paid compensation and assistance. Results of discussions with stakeholders in the process of information disclosure and public consultation carried out in June 2017 showed that VEC, District Compensation and Assistance Committee, LFDC and stakeholders implemented fully steps such as disclosure of information about the project, compensation and assistance policies, consultation with affected households about activities related to land acquisition, construction and mitigation measures. However, in order to strengthen further information about the project as well as additional policies according to agreed provisions of the Project. Table 12 below describes information about consultation meetings (Minutes and images of consultation meetings are shown in Annex 2). Table 12: Consultation time and locations

Time Venue Participants Contents

- Grasp the compensation Hoa Nhon situation in the commune to Commune 26/6/2017 carry out replacement price People’s surveys; and Committee - Update information about site clearance progress in order to - Land Fund Development prepare updated resettlement Center of Hoa Vang Hoa Phong action plan. District. Commune - Compensation for affected 26/6/2017 - Leaders of Communal People’s households; resettlement People’s Committees. Committee arrangement for displaced - Representatives of households. affected households. - Complaints and grievance - Consultants. redress mechanism

Hoa Tien - Livelihood restoration for Commune households 27/6/2017 People’s - Discuss with the commune and Committee agree on time of public consultation, socio-economic surveys. (Source: Socio-economic Survey, June 2017) 69. The methods used in public consultation including meetings, interviews with individual and focus group discussions. Local people in affected villages are willing to discuss and share information. Women and the youth are invited and encouraged to contribute ideas. Outputs of Information and Public Consultation

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70. Affected households and local people consciously support implementation of the project and project compensation policy. Besides, affected households also reflect indirect impacts after land acquisition; especially related issues are summarized in the table bellow. Table 13: Summary of discussions and comments at consultation meetings No Communes Community comments 1 Hoa Nhon - 10 affected households request to be supported with house rental and Commune subsistence. 2 Hoa Phong - Mrs. Duong Thi Chinh (Mr. Duong Thuy’s daughter) is using in land Commune lot No.94, with an area of 268 m2, field land with land ownership certificate. During the project execution, in the land lot is exposed to water stagnancy, disabling the rice production. Mrs. Duong Thi Chinh expected that Board of Site Clearance will recover entire land lot; however, the Site Clearance Compensation Committee refuses to approve because it is out of the project area boundary and only provides her with supports for the crop. Hoa Phong communal People's Committee has requested the Site Clearance Compensation Committee to acquire unproductive land area of Mrs. Duong Thi Chinh's household to ensure their living conditions. 3 Hoa Tien - There are 06 unresolved cases of incorrectly measured land area after Commune the acquisition. Communal People's Committee requests to re-conduct measurement of affected land area of these 06 households. - The construction unit damaged some intra-field roads and local roads in Hoa Tien commune. Hoa Tien Communal People's Committee request to reinstate the local road. (Source: Socio-Economic Survey, June 2017) 71. According to outputs from the consultation with the Land Fund Development Center of Hoa Vang district in June 2017, most of the issues commented in the public consultation (April 2015) such as infrastructure in the resettlement area, isolation due to lack of roads, cracks caused by the highway construction, etc., have been resolved. Currently, after compensation, there are some issues to be dealt with such as: re-measurement for acquired land area of 06 households in Hoa Tien communes and acquisition of remaining distorted land lots, flooded land plots which are ineligible for production of households in Hoa Nhon and Hoa Phong communes.

J. Monitoring 72. The implementation of grievance redress mechanism complies with the Policy Framework and RAP of the project has been approved by WB. 73. The implementation of compensation activities is monitored regularly to ensure that it is implemented as planned and that mitigating measures designed to address the project’s adverse social impacts are adequate and effective. Thus, the internal and external monitoring will be t through the project stages.

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74. The EPMU/VEC are responsible for internal monitoring, overseeing the formation, function, and activities of resettlement. The EPMU/VEC regularly submits monthly progress reports of RAP to the WB. 75. VEC selected DOWHA consultant for external monitoring. The Consultant was mobilized in 2013 and prepared 03 monitoring reports. They have monitored the implementation every twice a year, prepared and submitted reports to WB.

K. Supervision by World Bank 76. In addition to internal and external resettlement monitoring, WB have also conducted supervision of resettlement implementation. The supervision mission of October/2015; April/2016 and September/ 2016 identified the key issues and problems: Table 14: Issues identified by the Banks and VEC’s response No Issues identified by the Banks VEC’s Response and Remark Recommendation 1 For physical displace As new GoV land law households, total packages for regulation, if AH’s compensation and support is compensation package is not not enough for buying land enough for buying land plot plot and construction of new in resettlement site, they will house in resettlement site be supported with the 2 Land plots provided in the differences. resettlement site is not suitable Beside that additional for shop-runner. supporting packages recently 3 Price for land plot in have been provided to AHs to resettlement site is high. ensure that their livelihood are restored to pre-project implementation. 4 Compensation rate is not As above mentioned, in equilavent to market price; addition to compensation package, Da Nang city PC have issued many kinds of supporting and allowances as stipulated in Decision No.63/2012/QĐ-UBND to ensure that the combination of compensation and support package is enable that the rate is equilavent to market price 5 Current compensation and This issue have been support package is exclusive of discussed with Da Nang PC, allowance for temporary loss and many additional of business, subsistences, supporting packages have rental allowance; been provided. Eventually,

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the DD confirmed that 10 cases are still pending, which are under documentation procedure made by Da Nang PC. 77. The above-mentioned issues raised by the Bank have been discussed in many rounds of meeting between the Bank, VEC and Da nang city but so far it is yet to be addressed.

L. Compliance Matrix 78. Based on the assessment of implementation of compensation, allowances and assistance and resettlement, the compliance matrix is shown below:

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Table 15: Compliance Matrix

Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC

1 Agricultural User owns long- Compensation Compensation: Non-Complied production term, legal and - AP will be compensated by “land Compensation rate is replacement cost 1,252 AHs land recognized for land” with similar use purpose and surveyed by an independent LUR or compensated in cash at full consultancy company, implemented in replacement cost for the affected consultation with stakeholders and land area. issued separate cost unit approved by Da - If the remaining land is unviable for Nang Provincial People's Committee continued production, entire land according to Decision No. will be acquired and fully 8213/2013/QD-UBND dated on compensated at the request of APs. 23/11/2013. - Job changing allowance in cash

equal to 3 times of compensation Complied rate; or providing one lot of Job changing allowance

residential land or one lot of non- The allowance is from 1.5 times for agricultural production or business agricultural land and 3,500 VND/m² for lot equal to the residential land perennial trees. allocation limit as stipulated by PPC. - Subsistence and production allowance: cash compensation equivalent to 30 kg of Subsistence and production Complied rice/person/month at local market allowance

price; duration of allowance cash compensation equivalent to 30 kg corresponding to the rate of lost of rice/person/month at local market

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC agricultural land and type of price; duration of allowance impacts. Especially: corresponding to the rate of lost

Below 20% land loss will be agricultural land and type of impacts. accumulated until loss of 20% to Especially: get allowance; The subsistence allowance for farming 20% – 70% land loss and: directly AHs and APs when the State o No relocation: 6 months; acquires agricultural land of gardens, o Relocation: 12 months; ponds (excepting for aquaculture land, o Moving to difficult areas: forest production land, public land 24 months; managed by ward/commune PC that is More than 70% land loss and: used by households and people) is 8,000 o No relocation: 12 months; VND/m² (eight thousand VND per sq o Relocation: 24 months; meter), but the maximum area to be o Moving to difficult areas: supported will not be over 4,000m²/HH 36 months; (four thousand sq meter per HH). - Participate in the Income Restoration Program of the project.

- Vocational training and job

creation allowance for HHs who lose more than 20% of total agricultural land area or lose less than 20% but the remaining land is unviable for continued production: AP will be assisted with tuition fee for short vocational training course of 3,000,000 VND/person/course in maximum, meal allowance of

15,000 VND/person/attending day; Page 23 of 70 DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC transportation allowance of Vocational training and job creation 200,000 VND/person/course in Affected people will be compensated in Complied maximum for those who have to cash with 100% of replacement cost and travel a distance equal to or more will be provided with information on than 15 km far from training place. vocational training and appropriate career options. Households losing agricultural land within the ward or rural residential area will be supported by 30% of the average land price in the area. Income allowances and other supports. Organizations and individuals that are provided agricultural land by the State for other purposes shall prioritize to recruit laborers of households whose agricultural land is completely recovered for the purpose used by these organizations and individuals. - Will be refunded the rental for the Users with Land managed by ward/commune PC or Complied affected land corresponding to the temporary LUR handed over for production with remaining land lease period. If the or leased rights continuous use without and disputes remaining land is unviable for from 01st July 2014 until the land continued production, the project acquisition time will be supported no will acquire entire land and refund more than 60% agricultural land price. the full payment at the request of APs.

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC - Will be compensated for any investment they have made on the affected land or 30% of the replacement cost of the affected land, whichever is higher. - Will not be compensated for land Land users with Affected persons will be supported in Complied but will be compensated for unrecognized cash equivalent to 60% of replacement remaining land investment cost. In LUR cost for the acquired land. case the AP is utilizing the public land for agricultural production, In case affected persons are utilizing they will be compensated for 100% public land for production, they will be of crops and trees at market prices. compensated for 100% of trees and crops at market price. - Compensation 2 Residential Users with Compensation Non-Complied - In case the remaining land is viable land legal, long-term for continued use without Compensation is paid by replacement (468 AHs) and recognized relocation, AP will be compensated price and surveyed by an independent LUR in cash at the replacement cost for consulting company, in consultation the affected land. with stakeholders; and a separate unit cost will be issued according to Decision - In case of relocation, AP will be compensated by either: No. 8213/2013/QD-UBND dated on • Cash at full replacement cost for 23/11/2013 of Da Nang CPC. entire land plus additional allowance for self-relocation equivalent to unit cost of Self-relocated households will be Non-Complied investment per household at the supported with unit investment cost for resettlement site, or; the infrastructures in concentrated resettlement area as 95,000,000 VND/HH for households in minor plot, Page 25 of 70 DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC • If the price of plot in 170,000,000 VND/HH for those who live in major plots and the highest resettlement site is higher than one of affected plots: AP will be amount of 430,000,000 VND for assisted the difference. households arranged in the front of NH 14B (based on the on the Decision • If the price of lots in resettlement site area is lower No.798/QD-UBND dated 25/3/2014 of than one of affected lots: AP can Da Nang CPC). receive resettlement land and the difference in cash. • Free from taxes and transaction Households are supported differences to costs. ensure price unit for resettlement land Complied - Subsistence and production equal to compensation rate for affected allowances in cash equivalent to land. 30kg of rice/person/month at local market price for HHs, whose

accommodations are affected but productive land is not lost: Subsidence and production • House area is narrowed: 3 allowances Complied months; • Relocation: 6 months; Households who have houses and • Moving to the areas with register permanent address in the project difficult socio-economic site before land is acquired by the state conditions: 12 months; will be compensated by following levels:

a) Allowances for 06 (six) month/person in case of displacement.

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC b) Allowances for 3 (three) months/person in case of acquisition of Complied partial house, the remaining can still be resided in. - Allowance for moving: • Moving within the

remaining land: 2,400,000 VND/HH; Allowance for moving • Moving within province: • 3,000,000VND for households Complied 5,000,000 VND/HH; moving within the remaining land; • Moving outside province: • 4,500,000VND for households 7,500,000 VND/HH. moving within the province and - House renting allowance: • 10,500,000 VND for households • For cases, who were allocated moving outside the province. with resettlement land: • Households, who construct house • HH with 5 people or less: on the remaining land area, will be 9,000,000 VND/HH/6 months supported with 1,500,000

• HH with 6 people or more will dong/hh/month within 3 months for get additional allowance of moving assets to another place. The 900,000 VND/6 months for amount may be adjusted due to

each additional person. depreciation. • For cases, who were under land acquisition but not being

provided with resettlement House renting allowance land yet, the additional allowance is as follows: • Displaced households who have • HH with 5 people or less: house temporarily affected will be Complied 1,500,000 VND/HH/month supported to hire temporary house in resettlement area. Page 27 of 70 DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC • HH with 6 people or more will • If the temporary houses are get additional allowance of unavailable, displaced households will 150,000 VND/month for each be supported with 1,500,000 additional person. VND/month. House renting time will be from the time that households hand over

land until they receive land/house in - Allowance for moving of water resettlement area, in accordance with meter, electric meter and fixed notification of house arrangement unit, telephone: 650,000 – 2,000,000 plus 6 months of supporting amount for VND/ HH to pay for installation house rental during the construction of cost of electric system, water new house. system and telephone at new

accommodation. Allowance for moving of water meter, electric meter and telephone: Water meter 1,290,000 VND/HH, Electric meter: 1,161,000 VND/HH for type of single phase, 1,935,000 VND for type of 3 phases, Telephone: 774,000 VND/HH, cable television: 839,000 VND/HH. - Compensation rate shall be either Land users have Support 60% of agricultural land for Complied equivalent to the remaining temporary LUR households using public land. investment costs of land or 30% of or land lease price of replacement land, certificates depending on whichever is higher.

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC - Not compensated by land, but User with AH will be compensated in cash for Complied compensated for remaining land unrecognized acquired land by 60% by replacement investment cost LUR price.

- For the cases without LURC due to

the illegal conversion of land using purposes from the other types of Households affected by the project will land to residential land, be supported with an amount for compensation shall be based on the acquired land area by 50% replacement value of original land. price. - Houses: to be compensated in cash 3 Architectural Owner Compensation is paid by replacement Complied at replacement cost for the affected structures with/without price and surveyed by an independent part. In case the remaining part is (468 AHs) LURC, consulting company, in consultation not viable for continued use, it will with/without with stakeholders; and a separate unit be acquired at the request of the Construction cost will be issued according to Decision affected people. Compensation Permit No. 8213/2013/QD-UBND dated on payment is sufficient to rebuild 23/11/2013 of Da Nang CPC. houses as the same with previous ones at current market cost. - Other structures: to be Households affected by the project will compensated in cash using the be compensated or supported with 100% market price of materials and replacement price without any manpower. depreciation of materials that can be - For system of machinery and utilized or depreciated. production lines, which can be disassembled and movable, costs and damages (if any) in

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC dismantlement, transportation and For houses and structures without installation shall be compensated. construction permits in the planned - For slightly affected buildings and locations in the city, upon the scope and structures: supported reparation legality of the land, houses and costs in cash to restore situation or structures, the compensation and better than initial conditions. support will be based on the proposal of the compensation and site clearance committee. - Crops: to be compensated 100% at 4 Trees and Owner Compensation is paid by replacement Complied market price. crops regardless of price and surveyed by an independent - Perennial trees (timber trees and (12,914 affected tenure status consulting company, in consultation fruit trees): to be compensated at trees) with stakeholders; and a separate unit replacement cost. cost will be issued according to Decision No. 8213/2013/QD-UBND dated on 23/11/2013 of Da Nang CPC. - Compensation in cash for the cost 5 Public assets Owner or assets Cash compensation for cost of repair Complied of repairing or restoring works or and culture management and rehabilitation. according to agreement between (03 Communal facilities agency the owner and the District People’s Compensation, Assistance and Committee) Resettlement Committee.

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC - To be compensated in cash for cost - Households will received full 6 Graves Households Complied of land, exhumation, relocation, supporting amount for moving, affected or reburial and other related expenses reconstruction and other related (118 affected group of consistent with local customs and costs by replacement cost stipulated graves) households traditions under the Decision affected - Relocation allowance: No.8213/2013/QD-UBND dated • 2,400,000 VND for graves 23/11/2013 and Decision buried less than1 year; No.63/2012 dated 10/12/2012 of Da • 1,700,000 VND for graves Nang city PC. buried from 1 - 2 years; - Besides: • 1,200,000 VND for graves • 5,000,000 VND for graves buried from 2 - 3 years; buried less than1 year; • 600,000 VND for graves • 3,000,000 VND for graves buried more than 3 years; buried from 1 - 2 years;

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC - For the land part which is Complied 7 Temporary Owner of For the land part which is temporarily temporarily acquired for loss of land affected land acquired for construction: (i) Costs for The tentative construction: (i) Costs for land rent land rent shall be paid in cash at least length of the shall be paid in cash at least equal equal to net income which is obtained affected road to net income which is obtained from affected assets during interruptive section is 3 km. from affected assets during stage due to land acquirement; and (ii) The construction interruptive stage due to land land shall be restored within 3 months unit has acquirement; and (ii) land shall be after being used; The Project shall make recovered about restored within 3 months after compensation payments at replacement 2.5 km of Road being used; VEC shall pay cost or compensate by “land for land” if 409, the compensation rates according to affected land is not restored within 3 remaining ADB replacement cost or plan of land for months by Contractor after being used 5 500 m are land if affected land is not restored (agreement among parties shall be under within 3 months by Contractor after monitored by external monitoring construction, so being used (agreement among agency). it is not yet parties shall be monitored by reinstated. external monitoring agency). - Owner of - Allowance for ceasing business in 8 Impact on Economic organizations, business Complied business losses cash equivalent to 30% of actual business, households contributing business income and/or annual income. (27 AHs) production income tax by a certain amount per business and month regulated by tax agency will be manufacture are - Relocation assistance. supported with 06 (six) months of affected due to - Workers in production and business business income tax that has been paid land units and state agencies affected by consecutively before verification time acquisition. land acquirement will receive (attached with receipt); In case the tax is - Workers in allowance equivalent to the not contributed in 06 (six) consecutive business or minimum salary according to months, the compensation will be production provincial regulations in the calculated as the actual tax amount establishments. maximum conversion time of 6 contributed and recorded in the receipt Page 32 of 70 DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC months and will be assisted to find for consecutive months before the

out the replacement jobs. verification time. For economic organizations, business households contributing business income tax according to annual income, upon financial settlement report approved by the tax agency, the compensation will be 20% (twenty percent) of 01 (one) after-tax income. Each after-tax income is calculated as average amount of 03 (three) consecutive years before the verification time. If the economic organizations and business households operating under 03 (three) years, the after-tax income will be the amount stated in the financial settlement report of operated years.

Workers in business agencies and households affected by the land acquisition by suspension of business activities will be provided with an allowance under regulations of Labor Law and the supporting time will be based on actual situation. The compensation is equal to 70% of wage

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC of social insurance. The compensation duration will not exceed 06 months. Affected assets of enterprises, business households will be compensated according to the existing price of the work. The existing price of houses, structures damaged is determined by the percentage (%) of quality of remaining houses and structures multiple with price for constructing houses and structures with technical standards as stipulated by the Ministry. If the remaining structures' quality is less than 60%, the compensation will be 60%; the quality is more than 60%, the compensation will be added to 5%, but the compensation amount will not be over 100% of new construction price for houses and structures which have similar technical specifications as damaged ones. The system of machineries, production lines, production systems can be dismantled and transported; only the costs of dismantling, transport and re- installation are compensated.

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC Moving support is according to actual costs for production and business facilities. Economic organizations, households and individuals leasing site for production and business will be supported with an allowance for suspension of production and business by 50% of regulated levels. - To be assisted a sum of money: 9 Loss land and Vulnerable HHs Households who have to relocate, Complied on-land assets • Preferential HHs (Social Policy displace and belong to policy household. Heroic Mother, war veterans, (123 HHs) wounded and sick soldiers or Households who have more than 03 martyr’s families: 1,000,000 – (three) members as martyrs or 4,000,000 VND/HH; Vietnamese Heroic Mothers, a 1/4 war • Poor HHs: 3,000,000 – invalids, armed forces hero, labor hero: 5,000,000 VND/persons will be supported with 7,500,000 (seven • Other vulnerable households million five hundred thousand Vietnam (households with heads as dong) VND/HH. dependents, heads as alone elderly, ethnic minorities households) are assisted from Households with 02 (two) members are 1,000,000 VND – 3,000,000 martyrs or 01 (one) 2/4 war invalids: VND; will be compensated 4,500,000 (four - Having rights to join IRP. million five hundred thousand Vietnam - To be assisted on vocational training dong) VND/HH. and employment.

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Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC - HHs without manufacturing land Households with 01 (one) member is will be considered to be allocated martyr or 01 (one) 3/4 war invalids, 4/4 land following the commune’s wounded soldiers: will be compensated limit. 3,000,000 (three million Vietnam dong) VND/HH. Households certified by local authorities will be supported 3,000,000 (three million Vietnam dong) VND/HH. - Those who have lease house contract 11 Leased houses Households for Those who have lease house contract NA owned by State and not renting houses owned by State and not compensated, No AHs compensated, however if however if households have separate households have separate household registration at residential household registration at residential area, households will be supported in area, households will be supported cash to find new residential site by 60% in cash to find new residential site land value and 60% house value. by 60% land value and 60% house value. Relocation allowance with amount of - Relocation allowance with amount 3,500,000 VND/HH for leased of 3,500,000 VND/HH for leased households not owned by State before households not owned by State the time of planning and have legal before the time of planning and house leasing contract. have legal house leasing contract. Allowance for moving assets and - Assets moving allowance support identification of replacement for identification replacement accommodation. accommodation. 12 Incentive HHs hand over 3. 3,000,000 – 5,000,000 VND/HH. (i) 5% compensation value for houses, Complied bonus site timely auxiliary structures, structures, trees (1,721 AHs) (excluding land compensation value and Page 36 of 70 DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

Policies applied in the district are in accordance with No. 8213/2013/QD- Type of Project policy/ Entitlement UBND dated 23/11/2013 and Decision No. Eligibility Evaluation impacts regulated in RAP No. 63/2012 dated 10/12/2012 and Decision No. 6885/QD-UBND dated 10/10/2016 of Da Nang CPC other supporting policies) will be given to organizations, households and individuals, equivalent to 50,000,000 (five thousand million) dong. (ii) 8% compensation value for houses, auxiliary structures, structures, trees (excluding land compensation value and other supporting policies) will be given to organizations, households and individuals, equivalent to 50,000,000 (five thousand million) dong or more. The maximum bonus will not exceed 8,000,000 (eight million dong) VND/HHs. (iii) For tents, gardens and forests, forests, the bonus is equal to 50% of the above stipulated levels, but must not exceed 2,500,000 (two million, five hundred thousand dong) VND/household.

Page 37 of 70 DỰ ÁN PHÁT TRIỂN DƯỜNG CAO TỐC DÀ NẴNG- QUẢNG NGÃI Updated Resettlement Action Plan – Hoa Vang district, Quang Ngai province

M. Corrective Action Plan 76. As above-mentioned descriptions, there are still pending and unresolved problems. This issue is presented in the table below together with the proposed corrective action plan. Cost of the corrective action plan will be paid by the VEC and Da Nang CPC. Table 16: Corective Action Plan No. Implementing Issue Solution Time unit I Temporary impact Hoa Tien commune: Construction unit Construction Complete in - During the construction reinstates 500 m of unit Quarter III /2017 process, the construction ADB5 road for Hoa Tien unit disturbed 3km of in- commune field and transportation road in Hoa Tien commune. To the reporting time, the construction unit has reinstated about 2.5km of Road 409, the remaining 500m of ADB 5 road are under construction and has yet to be reinstated. II Permanent impacts 1 Hoa Nhon Commune: Request Da Nang City Da Nang CPC Complete in July - Additional supports People's Committee to and Hoa Vang 2017 for subsistence of 10 soon approve the option District options after land so that Hoa Vang District People’s acquisition. Land Fund Development Committee Center can prepare an additional compensation plan. 2 Hoa Phong Commune: - Request Da Nang CPC Da Nang CPC Complete in -The process of to give approval so that and Hoa Vang Quarter III/2017 construction results in the Site Clearance District flood of 268m2 Compensation People's agricultural land of, Committee can prepare a Committee, Mrs. Duong Thi Chinh. site clearance plan for Site Clearance Currently, the land lot Mrs. Duong Thi Chinh. Compensation is unable to can’t be Committee used for production. 3 Hoa Tien Commune: - Request Da Nang City Da Nang CPC Complete in - 06 cases relating to People's Committee to and Hoa Vang Quarter III/2017 incorrectly measured grant approval so that District DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

data of actual acquired Site Clearance People's area Compensation Committee, - 30 cases with distorted Committee to re-measure Site Clearance cultivated land area land areas of 36 Compensation which is not economica households. Committee viable for production after acquisition In the course of construction, the construction unit damaged some intra- field roads and local roads in Hoa Tien commune. Hoa Tien Commune People's Committee request reinstating the road. 4 Key issues identified VEC will work with Da VEC and Da Q4/2017 during Bank supervision Nang CPC to study and Nang CPC mission of prepare additional October/2015; package which aim to April/2016 and addressed issues raised September/ 2016; and by the Bank Mission (see other non-complied Section K) and item 1 issues identified in the and 2 in Table 15: Compliance Matrix (i.e Compliance Matrix. replacement cost for The proposal will be agricultural and submitted to WB for residential land). review and acceptance before implementation.

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PART III: ANNEXES

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Annex 1: Template of Questionnaire for Socio-Economic Survey

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Page 49 of 70 DỰ ÁN PHÁT TRIỂN DƯỜNG CAO TỐC DÀ NẴNG- QUẢNG NGÃI Updated Resettlement Action Plan – Hoa Vang district, Quang Ngai province

Annex 2: Minutes of public consultation

DA NANG – QUANG NGAI EXPRESSWAY DEVELOPMENT PROJECT Updated Resettlement Action Plan (SU-RAP) – Hoa Vang district, Da Nang City

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Annex 3: Replacement Cost Survey and Regulations on implementation of Compensation, Assistances and Resettlement in Da Nang city

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Annex 4: Minutes of Handing-over of Cleared Land to the Project

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Annex 5: Specifications and affected scope of the Da Nang – Quang Ngai Expressway Development Project

Main specifications of Expressway

Route length 139.2km (Expressway: 131.18km, Connecting road: 8.02km), the starting point at Tuy Loan interchange in Hoa Vang district, Da Nang city, the ending point at Hoa Vang district, Da Nang city Type/ Level Expressway: Type A, Grade 120 Connecting road: Level III, Plain

Design speed Expressway: 120km/h (Tunnel: 100km/h) Connecting road: 80km/h Width Expressway, Road and Bridge: 25.5m Tunnel: 2x13.05, Connecting road: 12.0m Number of lanes 4 lanes in the 1st stage (6 lanes in the final stage)

Traffic operation and 01 Traffic Management Center, 01 Expressway Operation Office, equipment system 09 Toll Plaza Offices, 02 Service areas, 04 Parking areas

Impact scope of the Expressway

Length Province Section Package District (m)

Da Nang KM000+000 - KM008+000 8,000 PKG1 Hoa Vang, Dien Ban

KM008+000 - KM016+750 8,750 PKG2 Dien Ban

KM016+750 - Km18+750 2,000 PKG3A Dien Ban

Dien Ban, Duy Quang KM018+750 - KM021+500 2,750 PKG3B Nam Xuyen Duy Xuyen, Que KM021+500 - KM032+600 11,100 PKG4 Son

Que Son, Thang KM032+600 - KM042+000 9,400 PKG5 Binh

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Length Province Section Package District (m)

KM042+000 - KM052+000 10,000 PKG6 Thang Binh

Thang Binh, Phu KM052+000 - KM065+000 13,000 PKG7 Ninh

Phu Ninh, Tam Ky KM065+000 - KM081+150 16,150 PKG A1 city, Nui Thanh

KM081+150 - KM099+500 18,350 PKG A2 Nui Thanh, Binh Son

KM099+500 - KM110+100 10,600 PKG A3 Binh Son Quang Ngai KM110+100 - KM124+700 14,600 PKG A4 Binh Son, Son Tinh

KM124+700 - KM131+180 6,480 PKG A5 Son Tinh, Hoa Vang

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Annex 6: Pictures of working with local authorities (June 2017)

(Da Nang city Land Fund Development Center No.3)

( Hoa Phong Commune, Hoa Vang district, Da Nang city)

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