MFCB NCC DON SAHONG HYDROPOWER PROJECT, LAO PDR SOCIAL IMPACT ASSESSMENT FINAL JANUARY 2013 Prepared For: MEGA FIRST CORPORATION BERHAD Prepared By: National Consulting Company Vientiane, Lao PDR MFCB NCC SOCIAL IMPACT ASSESSMENT TABLE OF CONTENTS 1 INTRODUCTION ........................................................................................................... 8 1.1 THE PROJECT .......................................................................................................... 8 1.2 OBJECTIVES OF THE SOCIAL IMPACT ASSESSMENT..................................................... 8 1.3 SIA PROCESS .......................................................................................................... 8 1.3.1 The SIA Team....................................................................................................................................8 1.3.2 Data collection at district level.........................................................................................................9 1.3.3 Data collection at village and focus group level ..............................................................................9 1.3.4 Data collection at household level.................................................................................................. 11 1.3.5 Data analysis .................................................................................................................................. 11 2 PROJECT DESCRIPTION........................................................................................... 12 2.1 DESCRIPTION OF THE DSHPP AND PROJECT FEATURES........................................... 12 3 POLICY FRAMEWORK FOR COMPENSATION AND RESETTLEMENT .................. 13 3.1 RELEVANT RESETTLEMENT LAWS AND REGULATIONS ............................................... 13 3.2 PROJECT RESETTLEMENT POLICY ........................................................................... 13 3.2.1 Defining Eligibility ......................................................................................................................... 13 3.2.1.1 CRITERIA FOR ELIGIBILITY ................................................................................ 14 3.2.2 Gender Mainstreaming Strategy..................................................................................................... 15 3.3 THE PROJECT’S RESETTLEMENT POLICY.................................................................. 18 3.3.1 Basic Principles .............................................................................................................................. 18 3.3.2 Compensation Principles................................................................................................................ 19 3.3.3 Relocation Principles...................................................................................................................... 19 3.4 ENTITLEMENT TO COMPENSATION AND ASSISTANCE UNDER PROJECT ....................... 21 3.4.1 Entitlement...................................................................................................................................... 21 3.4.2 Special Assistance and Allowance .................................................................................................. 21 3.5 OTHER INSTITUTIONAL ARRANGEMENTS: INTERAGENCY CO-ORDINATION................... 22 4 BASELINE INFORMATION......................................................................................... 23 4.1 THE PREVIOUS STUDIES ......................................................................................... 23 4.2 REGIONAL SETTING ................................................................................................ 23 4.3 ISLAND COMMUNITIES ............................................................................................. 23 4.4 SOCIO-ECONOMIC ANALYSIS OF PROJECT AREA....................................................... 24 4.4.1 Introduction and Methodology ....................................................................................................... 24 4.4.2 Population Characteristics ............................................................................................................. 25 4.4.3 Sufficiency and Disadvantaged Groups.......................................................................................... 25 4.4.4 Electricity, Transportation and Communications........................................................................... 26 4.4.5 Cottage Industries........................................................................................................................... 27 4.4.6 Access to Education Facilities ........................................................................................................ 27 4.4.7 Access to Water, Sanitation and Health Services ........................................................................... 27 4.4.8 Occupations .................................................................................................................................... 28 4.4.9 Food Consumption.......................................................................................................................... 28 4.4.10 Trade .......................................................................................................................................... 28 4.4.11 Services....................................................................................................................................... 29 4.4.12 Household Income and Expenditure Patterns ............................................................................ 30 4.4.13 Energy Use Patterns................................................................................................................... 32 4.4.14 Local Village Administration ..................................................................................................... 33 4.4.15 Gender Roles and Patterns in Local Villages............................................................................. 33 4.4.16 Village Rights to Natural Forests and their Management.......................................................... 34 4.4.17 Land Use and Tenure ................................................................................................................. 35 4.4.18 Local Livelihoods ....................................................................................................................... 36 4.4.19 Villagers’ Perceptions on Effects of DSHPP.............................................................................. 38 4.5 PUBLIC HEALTH...................................................................................................... 39 4.5.1 Public Health status in the region .................................................................................................. 39 4.5.2 Public Health Situation in Champasak Province............................................................................ 40 Social Impact Assessment – DSHPP FINAL January 2013 i MFCB NCC 4.5.3 Malaria and Dengue Fever............................................................................................................. 41 4.5.4 STI &HIV/AIDS .............................................................................................................................. 43 4.5.5 Intestinal Parasitic Infections......................................................................................................... 43 4.5.6 Schistosomiasis............................................................................................................................... 44 4.5.7 Variation in access.......................................................................................................................... 46 4.5.8 to safe water and sanitation in the region....................................................................................... 46 4.5.9 Nutritional Status............................................................................................................................ 46 4.5.10 Conclusions on Public Health Status ......................................................................................... 46 4.6 UNEXPLODED ORDNANCE (UXO) IN PROJECT AREA ................................................. 47 5 LIVELIHOOD RESTORATION AND DEVELOPMENT STRATEGY............................ 48 5.1 PRINCIPLES GUIDING LIVELIHOOD RESTORATION...................................................... 48 5.2 UNDERSTANDING LIVELIHOOD SYSTEMS .................................................................. 49 5.2.1 Livelihood Systems in the Project Area .......................................................................................... 49 5.3 LIVELIHOOD SYSTEM ANALYSIS ............................................................................... 51 5.3.1 Agriculture in Livelihood Systems .................................................................................................. 51 5.3.2 Fishery Resources in Livelihood Systems ....................................................................................... 52 5.3.3 Livestock in Livelihood Systems...................................................................................................... 53 5.3.4 The Role of Trading and Employment ............................................................................................ 53 5.3.5 Land Allocation and Right of Access .............................................................................................