Resettlement and Ethnic Development Plan Project Number: 41924 June 2014 Document Stage: Final Nam Ngiep 1 Hydropower Project (Lao People’s Democratic Republic) Main Report Prepared by Nam Ngiep 1 Power Company Ltd. for the Asian Development Bank The final report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Resettlement and Ethnic Development Plan for Nam Ngiep 1 Hydropower Project Updated Version, June 2014 REDP of The Nam Ngiep 1 Hydropower Project List of Contents EXECUTIVE SUMMARY .................................................................................................................................. VI LIST OF TABLES ......................................................................................................................................... XXIV LIST OF FIGURES ..................................................................................................................................... XXVIII ABBREVIATIONS .......................................................................................................................................... XXX CHAPTER 1 - INTRODUCTION ................................................................................................................ 1 1.1 SCOPE OF THE REDP ............................................................................................................................ 2 1.2 STRUCTURE OF THE REPORT ................................................................................................................. 4 CHAPTER 2 - PROJECT DESCRIPTION .................................................................................................. 6 2.1 PROJECT HISTORY ................................................................................................................................. 6 2.2 DESCRIPTION OF THE NNP1 HYDROPOWER PROJECT ........................................................................ 8 2.3 DESIGN CHANGES TO REDUCE PROJECT IMPACTS ............................................................................ 17 2.4 PROJECT IMPACT ZONE ...................................................................................................................... 19 CHAPTER 3 - LEGAL FRAMEWORK ..................................................................................................... 26 3.1 NATIONAL LAWS AND POLICIES AND ADB POLICY REQUIREMENTS .............................................. 26 3.2 PRINCIPLES AND METHODOLOGIES FOR VALUATIONS AND COMPENSATION RATES ..................... 42 3.3 SOCIAL SAFEGUARDS, GENDER AND DEVELOPMENT, SOCIAL PROTECTION, AND ETHNIC GROUPS 44 CHAPTER 4 - CROSSCUTTING SOCIAL ISSUES IN THE PROJECT IMPACT ZONE .............. 46 4.1 SOCIOECONOMIC PROFILES ................................................................................................................ 46 4.2 DEMOGRAPHY AND POPULATION CHANGES .................................................................................... 48 4.3 ETHNICITY .......................................................................................................................................... 51 4.4 SOCIAL ORGANIZATION AND CULTURAL RELATIONS ...................................................................... 51 4.5 INFRASTRUCTURE ............................................................................................................................... 52 4.6 SCHOOL ATTENDANCE ...................................................................................................................... 53 4.7 LITERACY AND EDUCATION LEVELS .................................................................................................. 55 4.8 HEALTH .............................................................................................................................................. 56 4.9 GENDER .............................................................................................................................................. 58 4.10 INFORMATION AND SERVICES ............................................................................................................ 70 4.11 AGRICULTURE AND HORTICULTURE LANDUSE ................................................................................. 71 4.12 RICE SUFFICIENCY (FOOD SECURITY) ................................................................................................ 73 4.13 LIVESTOCK .......................................................................................................................................... 75 4.14 FOREST UTILIZATION ......................................................................................................................... 76 4.15 HUNTING ............................................................................................................................................ 77 4.16 FISHERIES AND AQUACULTURE .......................................................................................................... 77 4.17 TOURISM ............................................................................................................................................. 81 4.18 IMPUTED INCOME ............................................................................................................................... 81 4.19 CASH INCOME .................................................................................................................................... 82 4.20 TOTAL INCOME ................................................................................................................................... 84 ii REDP of The Nam Ngiep 1 Hydropower Project 4.21 HOUSEHOLD EXPENDITURE ............................................................................................................... 84 4.22 POVERTY ............................................................................................................................................. 85 4.23 VULNERABLE HOUSEHOLDS .............................................................................................................. 92 CHAPTER 5 - ENTITLEMENT POLICY AND ELIGIBILITY ............................................................. 96 5.1 BACKGROUND .................................................................................................................................... 96 5.2 OVERALL POLICY AND ELIGIBILITY ................................................................................................... 96 5.3 IMPLEMENTATION FRAMEWORK ...................................................................................................... 105 5.4 IMPACT CATEGORIZATION ............................................................................................................... 111 5.5 INDIVIDUAL HOUSEHOLD CONSULTATIONS ................................................................................... 113 5.6 REPLACEMENT ASSETS ..................................................................................................................... 115 5.7 CASH COMPENSATION ..................................................................................................................... 116 5.8 COMMUNITY PROPERTY ................................................................................................................... 118 5.9 PRE-COMPENSATION TRAININGS .................................................................................................... 119 5.10 TRANSITIONAL MEASURES AND DURATION ................................................................................... 120 5.11 SPECIAL MEASURES FOR VULNERABLE HOUSEHOLDS .................................................................... 122 5.12 CHANCE FINDS PROCEDURE ............................................................................................................ 123 5.13 ADDRESSING UNANTICIPATED IMPACTS ......................................................................................... 123 CHAPTER 6 - LIVELIHOOD AND INCOME RESTORATION PLAN .......................................... 125 6.1 OBJECTIVES AND SCHEDULE OF ACTIVITIES .................................................................................... 125 6.2 LIVELIHOOD OPTIONS FOR PAPS OPTING FOR SELF-RESETTLEMENT .............................................. 126 6.3 LIVELIHOOD OPTIONS FOR PAPS OPTING FOR PROJECT RESETTLEMENT ....................................... 127 6.4 OFF-FARM ACTIVITIES ...................................................................................................................... 140 6.5 FISHERIES .......................................................................................................................................... 142 6.6 MARKET ACCESS AND VALUE CHAIN DEVELOPMENT ................................................................... 143 CHAPTER 7 - ETHNIC DEVELOPMENT PLAN ................................................................................ 145 7.1 ETHNIC GROUPS IN LAO PDR ........................................................................................................