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World Bank Document 41797 Public Disclosure Authorized Public Disclosure Authorized ISOCIAL A\SSESSMAEtI( RtEPORT' RUIAL DISTRIBUTION PROJECT Hanoi, Sept. 2007 Public Disclosure Authorized IJ.. I ~- Public Disclosure Authorized I TABLE OF CONTENTS ABBREVIATIONS ...................................................... 3 I. INTRODUCTION ..................................................... 4 1. Project description ........ .................................................... 4 2. Objectives and issues of Vietnam's Rural Electrification program .............................. 4 3. Role of the Social Assessment in Project Design ......................................... 5 3.1. Social assessment objectives ................................................... 5 3.2. Methodologies used in the SA .................................................. 6 11. SOCIAL ASSESSMENT ANALYSIS ............................................ 6 1. Demographic and Socio-economic profile of Project affected populations ......................... 6 2. Social and kinship organization of communities ......................................... 23 3. Stakeholders ............................................................... 26 III. MAIN CONCLUSIONS AND RECOMMENDATIONS FOR PROJECT DESIGN AND IMPLEMENTATION ................................................... 37 1. Potential benefits to stakeholders .................................................. 37 2. Adverse impacts on stakeholders and mitigation measures .................................. 37 3. Training needs of local community groups ............................................ 38 ANNEX ............................................................. 40 ANNEX 1. Summary of Provincial population and ethnic minorities ............................. 40 ANNEX 2.TOR ............................................................... 79 REFERENCE ......................................................... 82 I2 Abbreviations EVN Electricity of Vietnam RD Rural Distribution PC Power Company PPC Provincial People's Committee DPC District People's Committee SA Social assessment PMU Project Management Unit EM Ethnic Minority WB World Bank NGO Non-governmental organization EIA Environment Impact Assessment EMP Environment Management Plan RAP Resettlement Action Plan EMDP Ethnic Minority Development Plan 3 1. INTRODUCTION 1. Project description Vietnam's Rural Distribution project focuses on rehabilitating and increasing the capacity of existing distribution lines and substations and standardizing them to 110, 35 and 22kV to enable them to meet the growing demand more efficiently, provide better quality and quantity of electric power for productive uses, and reduce power loss. The Project is proposed to cost US$ 158.5 million, of which about US$ 107 million would be financed by IAD. It would be implemented by Power Companies (PCs) under the supervision of EVN. 2. Objectives and issues of Vietnam's Rural Electrification program The major challenge facing the program is how to connect a large number of rural, remote and inaccessible households to the grid electricity. Vietnam has made spectacular progress on confronting this challenge and as a result 4% of those communes and 10% of those households to the national grid. However, further efforts should be made to meet the remaining two objectives, namely improving the service quality and connecting the remaining households to the grid. Improving service quality: Expand the right to use, and the medium and lower lines in the RD network and develop electricity agencies to improve the quality of electricity to be supplied to manufacturers and households. The increase in electric use shows the increase in electric- consuming rural trade services. Customers require the service to improve its quality throughout 24 hours a day and reduce electric shortage and slight changes in voltage frequency which may harm electric appliances. The improved service will help increase manufacturers' use of electricity and rural economic growth and households' quality of life. Expand the right to electricity use to 10% of the remaining households. Currently, 10% of the remaining households who have no right to use electricity live in poorest communes or remote and especially difficult areas where there is a major geographical challenge to the connection. The costs of electricity connection are very high while it is impossible for the province, district or commune to find a funding resource and the households are too poor to make a contribution. Basing on advantages and suitability of each sub-projects as well as the concern of PCs, the project was divided into 7 components, each PC takes care of I component. They include PCI, PC2, PC3, Hai Phong PC, Hai Duong PC, Ninh Binh PC and Dong Nai PC. 47 sub-projects which belong to 7 components were divided into the following items: A 35/22kV sub-project included all sub-projects and lines in a province, and a 1 10 kV sub-project included 1 10 kV sub- stations and 110 kV lines. The list of the proposed 47 sub-projects included 31 items on repair and expansion of the 35 or 22 kV network. However, this list will be refined during the project preparation. The project is proposed to cost US$158.5 million, including US$107 million financed by IDA. This project will be implemented by (PCs) under the supervision of EVN. 53 sub-components of the project will be implemented in 43 provinces in Vietnam, namely Nam Dinh, Nghe An, Thanh Hoa, Bac Giang, Ha Nam, Thai Binh, Vinh Phuc, Bac Ninh, Phu Tho, Quang Ninh, Hoa Binh (PC1), Tien Giang, Ben Tre, Tay Ninh, An Giang, Can Tho, Vinh Long, Hau Giang, Long An, Ba Ria -Vung Tau, Binh Phuoc, Binh Thuan, Dong Thap, Binh Duong, Kien Giang, Soc Trang, Ca Mau, Tra Vinh, Ninh Thuan (PC2), Quang Binh, Quang Tri, Thua Thien Hue, Quang Ngai, Binh Dinh, Phu Yen, Quang Nam, Gia Lai, Dak Lak, Lam Dong (PC3), Hai Phong, Hai Duong, Dong Nai, and Ninh Binh. 4 3. Role of the Social Assessment in Project Design 3.1. Social assessment objectives The overall purpose of the Social Assessment (SA) is to assist the preparation team in designing and implementing the proposed project with the support and active involvement of individuals and groups that will potentially be the most directly affected by project activities. The SA is seen as an integrated method of the Project design and process to include participation and social analysis in the Project design and preparation work to ensure that the Project objectives are well set and that the proposed means to achieve them are appropriate. The SA process will help appropriately identify the Project primary beneficiaries and their needs. The SA is also necessary in order to ensure that the Project is designed to avoid or minimize any adverse impacts and social costs the Project could cause to local society. The SA will provide guidance during project preparation to re-design project activities or propose mitigation measures to lessen any adverse impacts and social costs the Project may have. The SA was carried out to see if the national legal framework affected the outcomes of the project's proposed objectives. So, the national legal and institutional framework was reviewed and legal documents and national policies were compared with WB Safeguard Policy to find out the gaps and measures to bridge these gaps. Special attention was paid to the legal framework, laws and regulations currently in force relating to land ownership and land use right and the land traditionally owned, used or occupied by EM communities, possible positive and negative impacts on EM communities if the project objectives were not appropriate, or any possible change in customary laws relating to land use right or division of resources and interests of the affected community, or any possible social disputes after a large number of workers moved in from outside. Customary laws were reviewed, and modem legal matters and methods to mitigate the infringement of these customary laws were made clear. The SA was also to find out if project implementers were aware of the significance of EM tangible cultural objects such as areas sacred to their cultural and spiritual lives, indigenous knowledge, and the protection of natural resources which the affected communities based on to exist (for example, forest areas and water resources). In this case, the SA was also conducted in replaceable areas after consulting community leaders and the whole affected community. Measures were also defined to ensure livelihood and basic rights of EM people through the strengthening of the legal framework. The SA also reviewed the capacity of implementing agencies in working with EM groups and the capacity of these agencies and NGOs in participation in the preparation, implementation and evaluation of project activities. The SA was viewed as an iterative process of consultations to take place throughout the project's life cycle, not just as a report to prepare for project implementation. Social investigation and analysis were continuously and systematically carried out along with Project implementation. So, the monitoring and evaluating indicators that were set up as a result of the SA may require further refinement in later stages of the Project. SA was conducted to impact on project design by studying the following aspects: (i) Studied socio-economic issues to ensure the interventions proposed by the project are appropriated to local development; (ii) Acknowledged the expectations and views of local businesses, farmers and other local people to ensure the project objectives of
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