Resettlement Plan

The resettlement plan 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. 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 Plan - Addendum Document Stage: Revised Project Number: 45198 November 2017

Viet Nam: Secondary Cities Development Project Package TK-02: Dien Bien Phu Road, Tam Ky City, Quang Nam Province (Section: Km6+309,8 –Km8+106,22)

Prepared by Provincial People’s Committee of Quang Nam.

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PROJECTS CONTRUCTION INVESTMENT MANAGEMENT AUTHORITY OF

QUANG NAM PROVINCE

Loan 3044-VIE

ADDENDUM TO UPDATED RESETTLEMENT PLAN

For Dien Bien Phu Extension Road

Prepared by: Projects construction investment management authority of Quang Nam province

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CURRENCY EQUIVALENTS

(As of August 2017)

Currency Unit = Dong (VND)

$1,00 = 22,400 VND

NOTEs:

(i) The fiscal year (FY) of the Government of Viet Nam ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2015 ends on December 31 2016.

(ii) In this report, "$" refers to US dollars.

(iii) This resettlement plan 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.

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ABBREVIATIONS

ADB – Asian Development Bank AEC – Agriculture Extension Centre AH/AP – affected household/affected person CFLD – Center for Land Fund Development CPC – City People’s Committee DMS – Detailed Measurement Survey DOLISA – Department of Labor, War, Invalids and Social Affairs EA – Executing Agency FS – Feasibility Study FHH – Female-Headed Household HH – Household IA – Implementing Agency IOL – Inventory Of Losses ISC – Implementation And Support Consultant LURC – Land Use Right Certificate PC – People’s Committee PMU – Project Management Unit PPC – Province People’s Committee RCS – Replacement Cost Study ROW – Right-Of-Way RP – Resettlement Plan SCDP – Secondary Cities Development Project VND – Vietnamese Dong VTC – Vocational Training Centre WU – Women’s Union

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GLOSSARY

Affected persons (APs)

- Refers to any person or persons, household, firm, private or public institution that, on account of changes resulting from the Project, will have its (i) standard of living adversely affected; (ii) right, title or interest in any house, land (e.g., residential, commercial, agricultural, and/or grazing land), water resources or any other fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence or habitat adversely affected, with or without physical displacement.

Compensation - This is payment given in cash or in kind to affected persons (APs) at replacement cost or at current market value for assets and income sources acquired or adversely affected by the project.

Cut-off Date - Date prior to which the occupation or use of the project area makes a person, household or entity eligible to receive compensation and assistance under the Project. Persons not covered in the census are not eligible for compensation and other entitlements, unless they can show proof that (i) they have been inadvertently missed out during the census and the DMS; or (ii) they have lawfully acquired the affected assets following completion of the census and the DMS and after the conduct of the detailed measurement survey (DMS). For this project, 23 March 2017 is considered as the cut-off date.

Detailed Measurement Survey (DMS)

- Finalization and/or validation of the results of the inventory of losses (IOL), severity of impacts, and list of APs. The final cost of resettlement can be determined following completion of the DMS.

Entitlements - Refers to a range of measures, such as compensation in cash or in kind, income restoration support, transfer assistance, relocation support, etc., which are provided to the APs depending on the type and severity of their losses to restore their economic and social base.

Land Acquisition - Process whereby any household under the Secondary Cities Development Project, through the Land Fund Development Centre, will alienate all or part of the land it owns or possesses to the ownership and possession of that agency for the project in return for compensation at replacement costs.

Relocation

- Physical relocation of an AP from her/his pre-project place of residence and/or business.

Replacement cost

- Means the amount in cash or in kind needed to replace an asset in its existing condition, without deduction of transaction costs or depreciation and salvageable materials, at prevailing current market value at the time of compensation payment.

Resettlement

- Refers to various measures provided to DPs or AHs to mitigate any and all adverse social impacts of the project, including compensation, relocation, and rehabilitation as needed.

Severely affected Households

- This refers to AHs who will (i) lose 10% or more of their productive land and their main source of income is from

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agriculture and (ii) HHs who conduct business or any other income generating activity in their house and the HHs have to relocate.

Vulnerable groups - These are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized due to the project and specifically include: (i) female-headed households with dependents, (ii) household heads is disability, (iii) households falling under the generally accepted indicator for poverty, (iv) elderly households who are landless and with no other means of support, (v) landless households, (vi) ethnic minorities.

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Contents

1. DESCRIPTION OF THE PROJECT AND SUBPROJECT 13

1.1. Background of the project 13

1.2. Sub-Components in Tam Ky City 13

1.3. The objectives of the resettlement plan 14

1.4. Measures taken to Minimize Negative Impacts 15

2. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 16

2.1. Permanent impacts 16

2.1.1. Impact on land 16

2.1.2. Impacts on houses 17

2.1.3. Impacts on secondary structures and tombs 17

2.1.4. Impacts on crops and trees 18

2.1.5. Impact on business 18

2.1.6. Impact on public property 19

2.1.7. Impact o heritage/cultural herige and conservation areas 19

2.2. Temporary impacts 19

2.3. Unforeseen impacts 19

3. SOCIOECONOMIC SURVEY 19

3.1. Socio-economic information in sub-project Area 20

3.2. Socio-economic information in six communes/wards in subproject area 20

3.2.1. Household demographic 20 3.2.2. Education 22 3.2.3. Occupation 23 3.2.4. Poverty 24

3.3. Socio - economic status of affected households 25

3.4. Gender issues 28

4. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION 29

4.1. Information Disclosure and dissemination 29

4.2. Public consultation 29

4.2.1. Meetings with Local Authorities 29 4.2.2. Consultation with Affected HHs 30

5. GRIEVANCE REDRESS MECHANISM 30

6. POLICY AND LEGAL FRAMEWORK FOR RESETTLEMENT 33

6.1. Relevant Vietnamese Legislation 33

6.2. Quang Nam province Decisions on land acquisition, compensation and resettlement in the province 34

6.3. ADB social Safeguards Policy and Requirements 35

6.4. Project Principles 35

6.5. Eligibility Policy 37

6.6. Reconciliation of Government and ADB Policy on Resettlement 37

7. ENTITLEMENTS, ASSISTANCE AND BENEFITS 40

8. RELOCATIONS AND RESETTLEMENT SITES 46

9. INCOME RESTORATION PROGRAME 46

9.1. Need for an Income Restoration Program 46

9.3. Vocational Training for affected households 47

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9.4. Access to credit Error! Bookmark not defined.

9.5 Budget for implementation of IRP 47

10. RESETTLEMENT BUDGET 48

10.1. Source of budget 48

10.2. Replacement cost survey 48

10.3. Estimation of Resettlement cost 48

11. INSTITUTIONAL ARRANGEMENTS 49

11.1. Provincial People’s Committee of Quang Nam Province 49

11.2. Tam Ky City People’s Committee 50

11.3. Project Management Unit (PMU) 50

11.4. Centre for Land Fund Development of Tam Ky City 51

11.5. Local Administrative Authorities (District, Communes/Ward) 52

11.6. Local Mass Organizations 52

11.7. Project Management and Implementation Support Consultant (PMIS) 52

12. IMPLEMENTATION SCHEDULE 53

13. MONITORING AND REPORTING 54

13.1. Internal Monitoring 54

13.2. External Monitoring and Evaluation 55

List of Figures

FIGURE 1 DIEN BIEN PHU STRATEGIC ROAD .................................................................................................. 14 FIGURE 2 MALE AND FEMALE IN SIX COMMUNES ......................................................................................... 20 FIGURE 3 LOCATION OF TAM KY CITY RESETTLEMENT SITES ......................................................................... 46

List of Tables

TABLE 1 CLASSIFICATION OF HOUSEHOLDS THAT WILL LOSE AGRICULTURAL LAND ................................. 16 TABLE 2 LAND AFFECTED IN THE COMMUNES ............................................................................................ 16 TABLE 3 AFFECTED AREA OF HOUSES ......................................................................................................... 17 TABLE 4 AFFECTED SECONDARY STRUCTURES ............................................................................................ 18 TABLE 5 IMPACTS ON TREES AND CROPS ................................................................................................... 18 TABLE 6 GENDER STRUCTURE OF HHS MEMBERS BY COMMUNE / WARD ................................................ 21 TABLE 7 AGE STRUCTURE OF HHS MEMBERS ............................................................................................. 21 TABLE 8 AGE GROUP BY WARD/COMMUNE ............................................................................................... 22 TABLE 9 EDUCATION LEVEL ......................................................................................................................... 23 TABLE 10 OCCUPATION OF HHS MEMBERS ................................................................................................... 23 TABLE 11 TYPES OF HOUSEHOLDS ................................................................................................................. 24 TABLE 12 TYPES OF HOUSEHOLDS BY COMMUNES/ WARDS ........................................................................ 25 TABLE 13 GENDER OF SURVEYED AH MEMBERS ........................................................................................... 26 TABLE 14 OCCUPATIONS OF SURVEYED HHS ................................................................................................. 26 TABLE 15 INCOME OF HOUSEHOLDS ............................................................................................................. 27 TABLE 16 EXPENDITURE OF HOUSEHOLDS .................................................................................................... 27 TABLE 17 MEETINGS WITH LOCAL AUTHORITIES AND AFFECTED HOUSEHOLDS .......................................... 29 TABLE 18 THE PROCESS OF GRM .......................................................................................................... 32 TABLE 19 GAPS BETWEEN NATIONAL LAWS AND ADB POLICIES AND GAP FILLING MEASURES ................... 38 TABLE 20 ENTITLEMENT MATRIX ................................................................................................................... 41 TABLE 21 INCOME RESTORATION MEASURES ............................................................................................... 47 TABLE 22 ESTIMATION RESETTLEMENT COMPENSATION COST .................................................................... 49 TABLE 23 IMPLEMENTATION SCHEDULE ....................................................................................................... 53

List of Appendixes

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APPENDIX 1 PUBLIC INFORMATION BOOKLET ................................................................................................... 58 APPENDIX 2 MINUTES OF PUBLIC CONSULTATION MEETINGS IN TAM PHU COMMUNE .................................. 59 APPENDIX 3 MINUTES OF PUBLIC CONSULTATION MEETINGS IN TAM THANH COMMUNE ............................. 72 APPENDIX 4 CERTIFICATE OF REPLACEMENT COST SURVEY .............................................................................. 78

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Executive Summary

Project description: The Government of the Socialist Republic of Vietnam has received a loan

from the Asian Development Bank (ADB) is to improve the urban environment and climate

resilience in Buon Me Thuot in the central highland region and the coastal cities of Ha Tinh and

Tam Ky resulting in improved environmental quality and increased coverage of urban infrastructure

and climate change in the three cities.

The Project consists of 11 sub-projects in three secondary cities in the central region of Vietnam,

including Buon Ma Thuot (Dak Lak province), Ha Tinh (Ha Tinh province) and Tam Ky (Quang

Nam province). Two out of the eleven sub-projects are in Tam Ky and they are Thach Ban River

Dyke completion work and Dien Bien Phu urban road construction. Land acquisition is required for

both packages: (i) Package TK-01: Ban Thach River Dike; and (ii) Package TK-02: Dien Bien Phu

road.

The PPC of Quang Nam has planned the construction of the Dien Bien Phu Road with a total

length of 12,24km. The road was divided into 3 parts for construction. The first part with 6.31 km

length was split into various sections, from Hung Vuong crossroads to the new coastal highway

(emergency escape road or route129) and is under construction with funding from SCDP. The

construction work is included in packages TK-02A and TK-02B. The second part now under

construction with 4,14 km length, will link Tam Ky city with the new expressway, and is funded by

Quang Nam Province’s budget. The last part with 1,8 km length, from the emergency escape road

(129) to the coastline (Km6+309.8 to Km8+106.22) has not been constructed yet. Therefore, to

facilitate completion of the whole traffic route, the PPC of Quang Nam decided to construct the

Dien Bien Phu extension road by the Decision No. 4727/QD-UBND dated 30 December 2016

which gives approval for the FS.

This addendum resettlement plan is prepared for the last section of the Dien Bien Phu road

extension that is described above, and is based on (i) the approved FS by the Decision No.

4727/QD-UBND dated 30 December 2016 of Quang Nam PPC (ii) agreement of ADB on the Mid

Term Review Mission from 3 to 8 May 2017, and (iii) results of DMS, public consultations with APs

and the replacement cost survey.

Scope of impact: The Dien Bien Phu extension road subproject affects 65 households (323

people) out of which 57 households (305 people) are severely affected households, and of which

15 households (44 people) have to relocate (07 out of these 15 households will also lose

agricultural land) and 50 households (261 people) lose more than 10% of their agriculture land.

There is 01 vulnerable HHs (this is the poor female headed HH with dependents).

Socio-Economic survey of affected households: The socio-economic status of the affected

households was surveyed by the PMIS Consultant from 27 June to 07 July 2017. Interviews were

held with 63 out of 65 affected households to assess the socio-economic status of the people

affected by land acquisition.

Community consultation and information dissemination: 02 Meetings and public

consultations were held in each affected commune during the preparation and implementation of

the subprojects. The first meeting was held in Tam Phu commune on 10 January 2017 and the

second meeting was held in Tam Thanh commune on 14 January 2017.These meetings

disseminated compensation policies and rehabilitation and support measures. The consultations

with the households include the compensation unit prices for affected assets, project plans,

announcement of the application results of compensation unit prices, interests and entitlements

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and explanations to questions and complaints and the grievance redress mechanism. The Project

Information Manual (PIB) was delivered to the affected families and their communities.

Grievance redress mechanism is set up to address complaints and questions from affected

households related to land acquisition, resettlement and compensation as quickly and

satisfactorily as possible. The families have rights to make any claims regarding the land

acquisition, resettlement, compensation policies, benefits, rates and payment of compensation,

strategies and procedures for resettlement as well as other support programs. According to the

procedures for complaint settlement, the people's committees of the communes, wards and social

institutions play the settlement role at commune level while the district/province people's

committees will be responsible for resolving complaints at the district and province levels. The

courts will be the final level for the settlement of complaints of the affected households. The

grievance redress mechanism will be published to the affected people during public meetings and

consultations.

The Compensation, Allowances and Resettlement Policy: The Compensation, Allowances

and Resettlement Policy is based on the approved resettlement plan of the first section of the

Dien Bien Phu road, newest applicable laws and regulations of the Quang Nam Province on land

acquisition, compensation, resettlement, rehabilitation to ensure that the entitlement is upgraded

and satisfied the ADB's policy on involuntary resettlement as defined in ADB’s Social Safeguard

Policy Statement (SPS-2009). If there is any discrepancy between the regulations of the

Government of Vietnam and ADB, the ADB rules, policies and procedures will be applied.

The rights and entitlements of the affected people (APs) are presented in the entitlement matrix

with the affected people as identified during the detailed measurement survey (DMS). This

entitlement matrix will be applied for preparation of the compensation plan to ensure the

restoration or improvement of APs’ incomes and livelihoods that are affected by the subproject.

Entitlements: The project entitlements adopted are based on ADB’ SPS 2009 on IRP,

Government Laws, Quang Nam Province People’s Committee Decisions on land acquisition,

resettlement and assistance. These entitlements were discussed and agreed with AHs during

public consultations. All compensation is based on the principle of replacement cost. The Da

Nang Evaluation and Financial Services JSC was employed by Quang Nam PPC to carry out a

replacement cost survey (RCS).

Relocation and resettlement: All AHs will be compensated in cash for their affected residential

land and structures. During consultations with AHs, the 14 relocated AHs agreed to move to

Tan Thanh and Tam Phu Resettlement Sites .

Income Restoration and Rehabilitation: The AHs will be provided with various types of cash

assistance for income and livelihood restoration and life stabilization as per government laws

and regulations in addition to payment for affected land and non-land assets. An income

restoration program will be started in Quarter 4, 2017 which will provide cooking training course

to 85 APs.

Institutional Arrangements: Quang Nam PPC is the Executing Agency (EA) for the project.

And Tam Ky City PMU is the Implementing Agency (IA). At the city level, the Tam Ky City

People’s Committee, together with relevant line agencies such as the city land fund

development center (LFDC) and the local authorities will be responsible for the implementation

of the RP.

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Resettlement Budget: The compensation for affected households is based on the replacement

cost of affected assets determined by the Da Nang Evaluation and Financial Services JSC . The

total budget for the implementation of the resettlement plan is VND 22,189,834,865 equivalent to

USD 990,618. This cost includes: (i) The cost of compensation and support for AHs; (ii) The cost

of implementation administration and; (iii) contingency cost. The People's Committee of Quang

Nam province has a responsibility to provide adequate budget and to make timely payments of

the compensation. The PMU in combination with the city land fund development center is

responsible for the direct payments to affected households.

Implementation Schedule: The addendum RP will be prepared in the 4th quarter of 2017 and

should get approval within 2 months afterwards. The construction is expected to be implemented

over one year and will commence in end of 4th quarter of 2017. The detailed of schedule of

resettlement activities are presented in Table 23 below.

Monitoring and Reporting: The Internal Monitoring is the responsibility of the PPC through

PMU with assistance from the resettlement specialist of the Project Management and

Implementation Consultant (PMIS). PMU will submit quarterly monitoring reports to ADB. PMU

has engaged an external monitor (EM) to provide an independent periodic review and assessment

of (i) achievement of resettlement objectives; (ii) changes in living standards and livelihoods; (iii)

restoration of the economic and social base of the affected people; (iv) effectiveness and

sustainability of entitlements; and (v) the need for further mitigation measures as required. Semi-

annual external monitoring reports will be submitted to ADB and PMU.

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1. DESCRIPTION OF THE PROJECT AND SUBPROJECT

1.1. Background of the project

1. Developing the secondary cities of Viet Nam is vital to forestalling the spatial and economic

disparities that can jeopardize the country’s sustained economic growth and attainment of its

development aspirations. Three cities have been selected under the Secondary Cities

Development Project: Tam Ky (Quang Nam Province), Buon Ma Thuot (Dak Lak Province)

and Ha Tinh (Ha Tinh Province).

2. The selected cities are rapidly developing urban areas whose potentials have been

constrained by weak infrastructures services. The economy of these cities, though still largely

agriculture based, indicates significant potential for newly emerging industries and services.

Road development, flood protection and drainage and solid waste management are the three

main development orientations under the SCDP.

1.2. Sub-Components in Tam Ky City

3. Tam Ky is the capital of Quang Nam Province. The core driver of economic growth for Tam

Ky and the surrounding area is the Chu Lai (SEZ). This is a very large area of some 27,000

ha, including 3,000 ha of industrial land.

4. Disaster management is a real concern for the coastal communities in Tam Ky and in Quang

Nam Province, where in the past inadequate storm warning systems and climate resilient

escape routes and rescue routes have not been adequate.

5. The existing roads and transport infrastructure are also not sufficiently attractive to make Tam

Ky competitive.

6. To answer to the above concerns, flood management and strategic roads development sub-

components have been proposed for Tam Ky City:

� Flood Management – Ban Thach River Dyke Completion and Upgrading

� Strategic Roads Development – Dien Bien Phu Road

7. The construction of Dien Bien Phu Road is required for the following key reasons:

� To support Tam Ky planned urban expansion through (a) Residential Development Areas; (b) Chu Lai Special Economic Zone Development; (c) Planned Recreation/Tourism and Cultural Development;

� To develop a strategic road link from the proposed national expressway to the national coastal road (under construction); and

� To improve disaster management facilities by linking Tam Ky urban areas (existing and proposed) to the national coastal road.

8. The two parts of Dien Bien Phu Road with total length of 10.45 km (the red section in figure

1-3) are under construction with funding from both ADB and Quang Nam PPC’s budget. The

third part of Dien Bien Phu (Dien Bien Phu 3B) road extension is about 1,8 km (the yellow

section in figure 1-3) and extends from the emergency escape road (129) to Tam Ky Coastline

(Km6+309.8 - Km8+106.22). The total road width including Right of Way (ROW) is 20m wide.

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9. This addendum to updated Resettlement Plan only focuses on the third part of Dien Bien Phu

road (Dien Bien Phu 3B).

Figure 1 Dien Bien Phu Strategic Road

1.3. The objectives of the Addendum

10. The resettlement plan ensures that the subproject will (i) avoid involuntary resettlement

wherever possible; (ii) minimize involuntary resettlement by exploring subproject and design

alternatives; (iii) enhance, or at least restore, the livelihoods of all displaced persons in real

terms relative to pre-subproject levels; and (iv) improve the standards of living of the displaced

poor and other vulnerable groups.

11. This document is prepared for the last 1,8 km section of Dien Bien Phu road and is based on

the approved detailed design for the road, results of the DMS, replacement cost survey and

consultations with APs.

12. This Addendum is the guiding document that identifies the key issues to address in reconciling

the requirements of ADB’s SPS 2009 on Involuntary Resettlement with national and provincial

government policies on compensation, assistance and resettlement. Concerns for involuntary

resettlement have been integrated in this document and will govern subproject design,

implementation, and monitoring.

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13. This Addendum includes the following:

(i) Policy and procedural guidelines for land acquisition, compensation, resettlement, and strategies that will help ensure full restoration of the AH’s livelihood and standard of living;

(ii) Identification of households and communities to be adversely affected by the subproject, where they are located, what compensation and related alleviating measures is to be provided to them and how and when these measures will be carried out;

(iii) A plan on how AHs will be involved in the various stages of the subproject, including resolution of grievances; and.

(iv) An estimated budget for resettlement implementation.

14. The Addendum is made to minimize negative impacts of sub-project and ensure mitigation

and compensation measures, which will help affected people recover their living standards at

least equal to their condition before the project implementation. To accomplish this, the

resettlement plan will achieve the following objectives:

� Determine the project’s affected areas and negative impacts on affected people as well as the impact on their property and economic - cultural and livelihood impacts;

� Determine affected people’s rights and entitlements to the compensation and support based on the replacement cost principle and the requirements of the national laws and the ADB policies;

� Describe the project’s procedures for compensation and support policy, including the grievance redress mechanism; and

� Describe institutional arrangements and financial requirements to implement plans and monitor the implementation of the resettlement plan.

1.4. Measures taken to Minimize Negative Impacts

15. During IOL, the basic design was shown in the public consultation meetings to obtain the

comments from AHs, their comments were recorded and considered for adjusting or

correcting during prepare the detailed design. The detailed design was presented again to

AHs to let them contribute their opinion and census to minimize the land acquired area of the

subproject but still harmonize with city planning.

16. A public information booklet (PIB) that explains, among others, the policy on cut-off date for

eligibility, will be distributed to the AHs and local governments during the preparation of the

RP. PIB will be distributed to the AHs and local governments, as needed, following ADB‟s

concurrence of the Project RP. Other than the afore mentioned, Government will ensure that

the acquisition of assets, payment of compensation, assistance and rehabilitation of the AHs

will be completed prior to the issuance of notice to proceed (NTP) to start construction works.

17. Meaningful consultations were conducted with affected households on January 2017 to obtain

their expectation toward subproject, contributive comments for basic design to minimize

negative resettlement impacts and specially to receive their consensus. In the consultation

meeting, the design and its explanation were presented to AH to obtain their comments to

avoid the land acquisition as much as possible. The expected construction plan is reviewed

to avoid their cropping season or they are informed at least prior 3 months for their

arrangement of their business or plantation plan. The local people suggested the timing of

daily construction schedule to avoid storm season. The daily construction activities are

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discussed with households to avoid disturbance of their business and travelling. see the

Appendix 2: Minutes of Public Consultation Meetings)

2. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

18. The DMS was conducted by the Land Fund Development Center (LFDC) of Tam Ky City from

October 2016 to 22/03/2017. The DMS collected disaggregated data on all affected land and

assets (structures, trees, crops) as well as affected businesses. The census obtained detailed

information on livelihoods, household composition, income and education qualifications.

2.1. Permanent impacts

19. The DMS results show that 67 families/organizations in 02 communes of Tam Ky City are affected by the component, including 65 households (323 APs) and 02 organizations (Commune People's Committee). Among the 65 AHs, 57 households are severely affected, of which 15 households have to relocate; 7 out of 15 relocated AHs are affected by house and 07 other AHs are affected by both house and agricultural land. In total of 57 severely AHs, there are 50 households that lose over 10% of their productive land consist of 07 households that lose 10% to 30%, 21 households that will lose 30% to 70% and 22 households that will lose more than 70% of their productive land. Table 1 details the number of households in different categories depending on the percentage loss of their agricultural land and relocation.

Table 1 Classification of households that will lose agricultural land

Percentage loss of productive land

Number of households

Tam Thanh Tam Phú Total

10-<30% 01 06 07

30-70% 04 17 21

>70% 08 14 22

Sub-total 13 37 50

Relocated HHs 02 13 151

Source: DMS data

2.1.1. Impact on land

20. The total affected land area is 51,655.7 m2, of which, residential land area is 3,227.1 m2

(counting for 6.25 %) in the 2 wards of Tam Thanh and Tam Phu; agricultural land area is

28,765.8 m2 (55.51%) in the 2 wards of Tam Thanh and Tam Phu, including paddy land of

8,763.6 m2 (16.97%); annual crop land of 573.7 m2 (1,11%); perennial land of 5,067.2 m2

(9.81%); productive forest land of 578.9 m2 (1,12%) aquaculture land (ponds) 13.692,4 m2

(26.51%); non-agricultural land 8,818.2 m2 (17.07%) and surface water area is 10,934.7 m2

(21.17%). Details of impact on land is shown in the table 2 below.

Table 2 Land affected in the communes

1 Double counting 07 AHs lose both agricultural land and house

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Stt Unit

Quantity Total

Tam Thanh Tam Phu Quantity Percentage

(%)

I Residential land m2 400 2,827.1 3,227.1 6.25

II Agricultural land m2 11,764.4 16,911.4 28,675.8 55.51

1 Paddy land m2 0 8,763.6 8,763.6 16.97

2 Annual crop land m2 0 573.7 573.7 1.11

3 Perennial land m2 4,766.4 300.8 5,067.2 9.81

4 Forest productive land

m2 578,9 0 578,9 1.12

5 Aquaculture land m2 6,419.1 7273.3 13,692.4 26.51

III Non-agricultural land

m2 8,818.2 0 8,818.2 17.07

IV Surface water m2 0 0 10,934.6 21.17

Total m2 20,982.6 19,738.5 51,655.7 100

Source: DMS data

2.1.2. Impacts on houses

21. There are 14 households that will be affected by the loss of their entire houses in the two

communes/wards. In Tam Thanh commune there are 02 households and in Tam Phu

commune there are 12 households. The total affected area of houses is 3.044,6 m2, of which,

142.5 m2 of the houses is category 3 and 2902.1 m2 is category 4 . (refer to Table 3 below).

Table 3 Affected area of houses

Communes Unit Grade-3 houses Grade-4 houses Total

Tam Thanh m2 0 400 400

HHs 0 2 2

Tam Phú m2 142.5 2.502,1 2.644,6

HHs 2 11 13

Total m2 142.5 2.902,1 3.044,6

HHs 2 13 15

Source: DMS

House categories are defined as follow: Category 4 houses are single storey solid construction structure (usually made in bricks)

Category 3 houses are having two floors firm structure (usually made in steel and concrete)

2.1.3. Impacts on secondary structures and tombs

22. The quantity of affected structures was measured for compensation, including ancestral

temples, fences and cement floors. There are 45 derelict tombs and 01 ancestral temples to

be relocated. The Tam Ky LFDC in combination with the local authorities will relocate these

derelict-tombs to a graveyard in the city. Regarding the ancestral temple, the host family will

not receive compensation but local authorities will build another one at their request instead.

The figures for the affected structures, detailed by type are shown in

23.

24. Table 4.

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Table 4 Affected secondary structures

No. Types of structure Unit Quantity

Total Tam Thanh Tam Phu

2 Ancestral temple block 0 01 01

3 Concrete beam m3 0 5.32 5.32

4 Concrete entresol m2 0 60 60

5 Wood entresol m2 35 0 35

6 Granite tiles m2 0 111 111

7 Ceramic tiles m2 43 59 102

8 Drilled well with pump unit 0 11 11

9 Latrine substructure unit 2 11 13

10 Outside decorative structure unit 0 18 18

11 Brick pier m3 0 2.52 2,52

12 Cement yard m2 120 1,430 1,550

13 Brick fence md 200 730 930

14 Tombs block 15 30 45

Source: DMS data

2.1.4. Impacts on crops and trees

25. There are many kinds of trees, plants and crops that will be affected, but for the crops, the

PMU will early steps to inform APs about the land acquisition plan so that they do not cultivate

on the land to be acquired. However, the PPC will decide to compensate AHs for one rice

season even though they will not cultivate at that time. There are 351 fruit trees, 3,803 timber

trees 397 decorative trees and 1498 industrial trees that will be affected. In addition, there are

other types of decorative plants planted. The details are shown in Table 5.

Table 5 Impacts on trees and crops

No. Types of trees and

crops Unit

Quantity Total

Tam Thanh Tam Phú

I Rice m2 0 8,127 8,127

II Crops m2 0 287 287

III Trees and Plants

1 Fruit trees tree 23 328 351

2 Timber trees tree 1,801 2,002 3,803

3 Decorative plants m 0 90 90

4 Decorative trees tree 19 360 379

5 Industrial trees tree 618 880 1,498 Source: DMS data

19

2.1.5. Impact on business

26. According to the results of the socio-economic survey, there are no households that do

business or have small businesses.

2.1.6. Impact on public property

27. According to the DMS result, no public properties are affected.

2.1.7. Impact on heritage/cultural herige and conservation areas

28. The component does not affect historical or cultural heritage areas, nature conservation

areas, biosphere reserves or protected forests.

2.2. Temporary impacts

29. To ensure that temporary impacts during construction are minimized, if not avoided entirely,

the civil works contract will include the following provisions: (i) contractor to pay rent for

any land required for construction work space; (ii) to the extent possible, only unused land will

be used as construction work space; and (iii) temporarily used land will be restored or

improved to its pre-Project condition. The temporary impacts of this subproject are mainly

noise and dust, but with the implementation of the appropriate mitigation measures, the

remaining temporary impact will be insignificant Together with the Tam Ky LFDC, the

contractors will undertake the corresponding compensation and allowances for all losses as

provided in the Project Entitlement matrix

2.3. Unforeseen impacts

30. Unforeseen impacts will include any impacts not included or anticipated at the time of

preparing the resettlement plan. Such unforeseen impacts may include (but not necessarily

limited to) additional displaced peoples due to change in land acquisition boundaries,

displaced peoples present at the time of or prior to the cut-off date but not included in the

census; additional losses of property not previously included in the DMS (but present in the

affected area at the time of the DMS); restrictions on land use (such as resulting from right of

way/safety zone restrictions) which were not included or anticipated at the time of the DMS.

Such unanticipated impacts will be included in the resettlement plan mitigation measures and

such mitigation measures are to be consistent with the principles and objectives of the

resettlement plan as specified in item 6.4 above. The means of inclusion will be through either

a Corrective Action Plan or Addendum to the Resettlement Plan and will require both

endorsement by the executing agency and concurrence by ADB.

2.4. Tenure status

31. The DMS results identified that all affected households have land use rights certificates

(LURC) for their affected land.

2.5. Vulnerable HHs

32. Based on the definition of vulnerable HH by the project, the survey results indicate that 01 HH

is considered vulnerable HH. This is poor female headed HH with dependents.

20

3. SOCIOECONOMIC SURVEY

33. The socio-economic status of affected households was conducted in June and July 2017.The

socio-economic data for the households in the project area and affected households are

presented in article 3.1 and 3.2 respectively.

3.1. Socio-economic information in sub-project Area

34. Tam Ky is the capital city of Quang Nam province with a population of approximately 148,000

people. According to statistical data from Tam Ky’s officers, average population density in 7

communes/ wards in Tam Ky is 3,716 people/km2. The population density is quite high, and

indicates the crowded population in city areas.

35. Overall, the province’s socio-economy in the first quarter of 2017 has been stable; industrial

production maintained a good growth rate; indicators of industrial production (IIP) in March

increased 35% compared to the previous month, and rose 6.5% in comparison with the same

period last year. Total retail sales in March were nearly VND 2,300 billion, increasing 6.6%

compared to the previous month, and rising 13% in comparison with the same period last

year. In the first three months of this year, total retail sales reached VND 6,670 billion,

increasing more than 10% compared to the same period last year. Revenue from hotels and

restaurant services was estimated at VND 2,343 billion, increasing 18% compared to the

same period last year, and therein VND 567 billion was from hotel service while revenue from

tourism service was estimated at VND 113 billion, rising by 80%.

36. In addition, total capital mobilized from credit institutions in the first quarter of 2017 was more

than VND 38,000 billion, increasing nearly 37% compared to the same period last year. Total

outstanding loans were over VND 45,000 billion, rising nearly 23.7% compared to the previous

year and increasing nearly 5% compared to the beginning of the year. Up to 21/03/2017, the

province has disbursed nearly VND 600 billion of the capital construction investment plan in

2017, reaching 21% of the plan. The state budget revenue in the 1st quarter of 2017 was over

VND 5,115 billion, rising 31% compared to the same period last year, and equal to 24% of the

yearly estimate; therein, domestic revenue was VND 3,800 billion, rising 42% compared to

the same period last year, and equal to 20% of the yearly estimate; import and export value

was VND 1,266 billion, equal to 20% of the yearly estimate, and increased by 9% compared

to the same period last year. Total local budget expenditure was nearly VND 4,234 billion,

reaching 21% of the yearly estimate, and rising 35% compared to the same period last year.

37. In addition, in the first quarter of 2017, the province has organized many cultural activities and

traditional events. The public administrative center has been in operation for nearly 3 months,

with the role of guiding, receiving and resolving administrative procedures and returning

results to people and businesses and in doing so, it mostly satisfies people and businesses.

Province security is stable and protection in Tet and holidays is guaranteed.

3.2. Socio-economic information in six communes/wards in subproject area

3.2.1. Household demographic

38. The sample surveyed in 6 communes/wards was 1105 households. therein 303 HHs are

female-headed HHs (accounted for 27.4%). The total population of 1,105 households is 3,952

people.

21

Figure 2 Male and female in six communes

Gender structure of HHs members

39. According to the table above, the gender of household members can be divided fairly evenly.

Specifically, there are 2050 male members (51.9%) and 1902 female members (48.1%).

40. Gender structure of members of HHs is relatively uniform between male members and female

members and the difference between the sexes is not much.

Table 6 Gender structure of HHs members by commune / ward

No. Ward/commune

Gender

Male Female

N % N %

1 Tan Thanh 628 51.6 590 48.4

2 Hoa Huong 311 43.3 407 56.7

3 An Phu 272 62.7 162 37.3

4 An My 162 49.1 168 50.9

5 Tam Phu 404 55.5 324 44.5

6 Phuoc Hoa 223 56.6 171 43.4

7 An Xuan 50 38.5 80 61.5

41. For the areas of Tan Thanh, An Phu, Tam Phu, Phuoc Hoa the gender structure of the

members of the family have more men rather than women, most prominently in An Phu where

there were 272 males (62.7%) and 162 females (37.3%). In Hoa Huong, An My, An Xuan, the

number of female members was higher than that of males in the household, typically in An

Xuan, with a male share of 38.5% and female share of 61.5%. In general, in the 7 surveyed

areas, the sex structure in each commune / ward is different but not large.

42. The age of HHs members is divided into six groups: (i) under 6 years old; (ii) 6 to under 18

years old; (iii) 18 to under 35 years old; (iv) 36 to under 45 years old; (v) 45 to under 60; (vi)

over 60 years old. For details see the table below:

Table 7 Age structure of HHs members

Male,

2050

Female,

1902

22

No. Age group N %

1. Below 6 years old 222 5.6 2. From 6 to 18 years old 568 14.4 3. From 18 to 35 years old 1135 28.7 4. From 35 to 45 years old 524 13.3 5. From 45 to 60 years old 906 22.9 6. Above 60 years old 597 15.1

Total 3952 100.0

43. The age group structure shows that the proportion of youth age groups (18 to under 35)

accounts for the highest proportion of 28.7%. Secondly, the proportion of middle-aged people

(from 45 to under 60) accounts for 22.9%. The third group aged 60 and above is (15.1%). Age

group from 6 to under 18 years old was the fourth (accounting for 14.4%); the fifth group aged

(from 35 to under 45) accounts for 13.5%. Under the age of 6 accounts for the smallest

proportion (5.6%). The age structure is divided in proportions that show the prominence of the

nuclear family structure in households in Tam Ky city.

44. The age structure by ward/commune in Tam Ky shows that the proportion of people aged

from 18 to below 35 years has the highest age structure proportion in most of the 7 commune/

ward.

Table 8 Age group by ward/commune

No.

Ward/

commune

Age group

Below 6

years old

From 6 to 18

years old

From 18 to

35 years old

From 35 to

45 years old

From 45 to

60 years old

Above 60

years old

N % N % N % N % N % N %

1 Tan Thanh 50 4.1 98 8.0 344 28.2 201 16.5 333 27.3 192 15.8

2 Hoa Huong 64 8.9 103 14.3 166 23.1 88 12.3 173 24.1 124 17.3

3 An Phu 15 3.5 53 12.2 135 31.1 55 12.7 92 21.2 84 19.4

4 An My 5 1.5 43 13.0 81 24.5 52 15.8 90 27.3 59 17.9

5 Tam Phu 34 4.7 150 20.6 230 31.6 81 11.1 146 20.1 87 12.0

6 Phuoc Hoa 53 13.5 81 20.6 129 32.7 36 9.1 57 14.5 38 9.6

7 An Xuan 1 .8 40 30.8 50 38.5 11 8.5 15 11.5 13 10.0

45. The proportion of people aged from 18 to below 35 years in Tan Thanh is (28.2%), from 35 to

45 years old (16.5%) and from 45 to 60 years old (27.3%). The proportion of people aged

from 45 to below 60 years is the highest age structure proportion in Hoa Khuong and An My

(24.1% and 27.3%, respectively) while for the remaining wards/communes, the age group

from 18 to 35 years old is higher than the other age groups: An Phu (31.1%), Tam Phu

(31.6%), Phuoc Hoa (32.7%) and An Xuan (38.5%),.

3.2.2. Education

46. According to the survey structure in Tam Ky City, the educational level of members in 1105

households was classified into 6 levels: (i) Illiteracy, (ii) Primary school, (iii) Secondary school,

(iv) High school, (v) Vocational training/College/Graduate, (vi) Post graduate.

23

47. According to the above data, education of household members in 7 surveyed areas is

relatively low and there is a significant proportion of illiterate people (200 people, accounting

for 5.1%). Primary level has 701 people (17.7%); secondary school accounts for the highest

rate of 1394 (35.3%), high school has 1120 people (28.3%), vocational/ college/ graduate

training has only 523 people (13.2) and post graduate 14 people (0.4%)

48. Generally, the educational level of the members of interviewed households does not

correspond with the current socio-economic development conditions especially since Vietnam

is in the process of joining the fourth industrial revolution and knowledge economy.

49. The education level of members by commune shows that the highest rates are for education

to secondary school and high school levels.

Table 9 Education level

No. Ward/commune

Education level

Illiteracy Primary

school

Secondary

school High school

Vocational

training/

College/

Graduate

Post

graduate

N % N % N % N % N % N %

1 Tan Thanh 49 4.0 190 15.6 486 39.9 349 28.7 138 11.3 6 0.5

2 Hoa Huong 58 8.1 131 18.2 270 37.6 183 25.5 74 10.3 2 0.3

3 An Phu 18 4.1 89 20.5 133 30.6 141 32.5 51 11.8 2 0.5

4 An My 4 1.2 55 16.7 133 40.3 94 28.5 44 13.3 0 0.0

5 Tam Phu 25 3.4 139 19.1 248 34.1 186 25.5 127 17.4 3 0.4

6 Phuoc Hoa 46 11.7 77 19.5 100 25.4 107 27.2 64 16.2 0 0.0

7 An Xuan 0 0.0 20 15.4 24 18.5 60 46.2 25 19.2 1 0.8

50. The communes / wards where education to secondary school level is the highest proportion

are Tan Thanh (39.9%), Hoa Huong (37.6%), An My (40.3%) and Tam Phu (34.1%).

Communes / wards where secondary school education is the highest proportion were An Phu

(32.5%); Phuoc Hoa (27.2%), and An Xuan (46.2%). According to the above data, the

educational attainment level of most people is secondary school and high school level.

3.2.3. Occupation

51. The local economy is still mainly agricultural. Therefore, the proportion of people working in

agriculture is the highest (36.3%). The highest proportion of age groups is the youth, while the

proportion of students account for 15.1%. Proportions of business people, employees, free

labourers, and privately self-employed are relatively equal (13.7%; 10.7%; 10.1%, 9.5%

respectively).

Table 10 Occupation of HHs members

24

No. Occupation N %

1. Agriculture 1137 36.3

2. Business 431 13.7

3. Employees 337 10.7

4. Self-employed 297 9.5

5. Be hired 302 9.6

6. Housewife 90 2.9

7. Retired 55 1.8

8. Free labour 318 10.1

9. Others 168 5.4

Total 3135 100

52. In addition, the proportion of people working as housewives is 2.9% and retirement is 1.8%.

The number of people that have other occupations accounts for 5.4%, and this proportion

includes the number of people who have lost their working capacity due to old age and some

people with disabilities or work-related accidents. The proportion of people engaged in

agriculture is the largest group and shows similarity with the educational level of HH members

since most of the agricultural population is educated from high school downwards.

53. The number of working-age people is 2792, of which 1235 are women (44.2%). This reflects

the similarity between men and women of working age. At the same time, the results suggest

that there should be active support to help men and women demonstrate equality and

efficiency in labor.

3.2.4. Poverty

54. In Tam Ky City, households are classified into 4 basic types: (i) Poor households; (ii) near-

poor households; (iii) Standard households; (iv) single-person households

55. Poor households and near-poor households are defined in Clause 1, Article 2 of Circular No.

17/2016/TT-BLDTBXH which guides the procedure of reviewing the poor and near-poor

households on a multi-dimensional approach for the period 2016 -2020 and is issued by the

Ministry of Labor, Invalids and Social Affairs. Accordingly, poor households and near-poor

households are the households which, through annual surveys and reviews, meet the criteria

for identifying poor households and near poor households as defined in Clauses 1 and 2,

Article 2 of Decision No. 59/2015/QD-TTg dated 19/11/2015 of the Prime Minister and are

recognized by the Chairman of the Commune People's Committee on the list of poor and near

poor households in the area. Therefore, the results of the survey on the type of household

only recognizes households with certificates from the commune / ward People's Committee

for poor households or near-poor households.

56. A single-person household is defined as a household where either a mother or a father singly

raise their children, any family that is divorced, separated, single, not married yet, or has a

close relationship between a man and a woman, or if married, live separately without

wife/husband.

57. Standard households are households that do not have economic difficulties, meet the basic

needs of food, accommodation, have freedom to participate in social and cultural activities,

and have a stable life.

58. See the table below for details of household types:

Table 11 Types of households

25

No. Type of household N %

1 Poor household 16 1.4

2 Near-poor household 41 3.7

3 Standard household 1029 93.1

4 Single-person household 19 1.7

Total 1105 100.0

59. The above table shows that the number of standard households is 1029 households, (93.1%).

The number of poor households is 16 (1.4%) and the number of near-poor households is 41

(3.7%). The number of single-person households is 19 (1.7%). In Tam Ky City, the number of

poor households makes up a small proportion, so it shows that the poverty reduction activities

are well done. The proportion of standard households is the majority, and shows that the

household economy is stable but there is no great development.

60. In the 7 communes / wards, most of the households are standard households, especially, in

Phuoc Hoa, where the percentage of standard households is 100%. In the remaining

communes / wards, the majority are still standard households: Tan Thanh (93.4 %), Hoa

Huong (86.6 %), An Phu (90.7 %), An My (95.6%), Tam Phu (97.0%), An Xuan (90.9%).

Table 12 Types of households by Communes/ Wards

No. Communes/ Wards

Types of household

Poor

household

Near-poor

household

Standard

household

Single –

person

household

N % N % N % N %

1. Tan Thanh 6 1.9 11 3.5 295 93.4 4 1.3

2.Hoa Huong 4 2.2 10 5.4 161 86.6 11 5.9

3.An Phu 4 2.2 13 7.1 166 90.7 0 0.0

4.An My 0 0.0 3 3.3 87 95.6 1 1.1

5.Tam Phu 0 0.0 3 1.5 191 97.0 3 1.5

6.Phuoc Hoa 0 0.0 0 0.0 99 100.0 0 0.0

7.Tan Thanh 2 6.1 1 3.0 30 90.9 0 .00

61. Poor households and near-poor households are concentrated in Tan Thanh (poor

households: 1.9% and near-poor households: 3.5%); Hoa Huong (poor households: 2.2% and

near poor households: 5.4%); and An Phu (poor households: 2.2% and near poor households:

7.1%).

3.3. Socio - economic status of affected households

62. The socio-economic status (SES) of affected households is based on the SES survey that

was conducted from 28 June to 07 July 2017 on 61 out of 65 AHs (57 severely affected

households and 04 marginally affected households) living in the 2 communes of Tam Thanh

and Tam Phu and are affected by the extension of Dien Bien Phu road, from the emergency

escape road (129) to the coastline (Km6+309.8 to Km8+106.22).

26

63. The land that is to be acquired for construction of the extension of Dien Bien Phu road is

agricultural land including paddy, annual crops, perennial, forest productive and aqua-cultural

land. This road will affect residential land also and affected households will have to relocate

to the Tan Thanh and Tam Phu resettlement sites.

64. The socio-economic survey was conducted simultaneously in both Tam Thanh and Tam Phu

communes, so it is therefore presented below for both communes.

65. General information of AHs: There were 61/65 HHs are interviewed, since four HHs did not

answer due to long-term absence and these HHs are only marginally affected. Among the 61

interviewed AHs who are affected by the Dien Bien Phu road extension, there are 323

persons, of which 166 are male (51.4 %) and 157 are female (48.6 %). Among the 61 surveyed

people, there are 29 men (47.5%) and 32 women (42.5%). Of the 61 HHs, 35 heads of HHs

are male and 26 heads of HHs are female. All of these HHs belong to the Kinh group. The

average household size is 4.96.

Table 13 Gender of Surveyed AH Members

Components No. of Surveyed

HHs

Members Average household

size Male Femal

e Total

Dien Bien Phu Extension Road

61 166 157 323 4.96

Percentage(%) 51.4% 48.6% 100%

Source: socio-economic survey, 06-07/2017

Livelihoods and income

66. Among 61 surveyed HHs, 59 HHs have jobs and 2 HHs with elder members who have

reached the retirement age (3.3%), are entitled to State subsidies, and have mature children.

There are 33 HHs doing agriculture work which accounts for 54%, 12 HHs with aquaculture

land ownership which accounts for 3.3%, 8 HHs working for the private sector or being

employed as workers which accounts for 13.2%, 03 HHs running small scale businesses e.g.

selling seafood at markets, which accounts for 4.9% and only 01 HH doing tailoring which

accounts for 1.6%. Most of the HHs doing agriculture have additional occupations; women

tend to work as hired labors in services or raising cattle whereas men tend to work in

construction occupations e.g. bricklayers or porters. 100% of children in school age (6-15

years old) have attended school. All heads & members of the HHs are literacy.

Table 14 Occupations of surveyed HHs

Component Dien Bien Phu

extension road

Main occupations

Ag

ricu

ltu

re

Aq

uacu

ltu

re

Go

vern

men

t

Ag

en

cy

Sm

all

sc

ale

bu

sin

es

s

Hir

ed

at

pri

vate

secto

rs o

r a

s

wo

rkers

Tail

ori

ng

Un

em

plo

yed

To

tal

No. of HHs 33 12 02 3 8 1 2 61

Percentage 54% 19.7% 3.3% 4.9% 13.2% 1.6% 3.3% 100%

Source: socio-economic survey, 06-07/2017

27

67. According to the survey results, by HH level, the lowest income is 200,000 VND/month and

the highest is 60,000,000 VND/month. The average income is 8,238,000 VND. Total income

calculated by the sum of main income sources and extra income sources is specified in

68. Table 15. Measured by income per capita, the lowest income is 200,000 VND /month and the

highest is 10,000,000 VND/month, average income per capita is 1,555,820 VND/month. HHs

with the lowest income are the head of HHs who are elderly, who mainly rely on the

government subsidies and the mature children (providing food and in-kind, not in cash).

Among the surveyed HHs, there is 1 poor HH given a recognition certificate in 2017.

Table 15 Income of households

Component Dien Bien

Phu extension road

The main income

source (VND)

Additional

income (VND)

Total income (VND)

Income calculated by HH

The lowest income 100,000 - 200,000

The highest income 60.000.000 15,000,000 60,000,000

Average income 5.757.213 2,382,623 8,238,197

Income per capita

The lowest income 100,000 0 200,000

The highest income 10,000,000 7,500,000 10,000,000

Average income 1,087,276 449,969 1,555,820

Source: socio-economic survey, 06-07/2017

69. The results show that the expenditure for family food and living cost accounts for about

54.74%, for health care 10.13%, education 14.25%, other expenditures e.g. weddings or

funerals and other unexpected expenditures 20.88%. This indicator shows that other

expenditures accounts for an enormous part of the total family expenditure. As for health care

expenditure, except for the government workers and healthcare-insured HHs under

preferential treatment policies, most of the HHs have to purchase voluntary healthcare

insurance for the family members. This helps reduce considerably the spending on

healthcare.

Table 16 Expenditure of households

Component Dien Bien Phu

extension road

Family expenditure

Food,

living cost

Health

care Education Others Total

The average expenditure of a HH 3.295.082 609.918 857.869 1.256.311 6.019.180

The expenditure rate 54.74% 10.13% 14.25% 20.88% 100%

Source: socio-economic survey, 06-07/2017

Access to social services

28

70. According to the survey result, 100% of the HHs have access to the national electricity grid.

There are 56 HHs using borehole water of which 2 HHs use dug-wells as an additional water

source, 06 HHs use tap-water with 01 of these 06 using dug-well water as an additional water

source. Most of the HHs believe that the quality of dug-well water is good and this kind of

water is used for daily bathing and cooking. There are 59 households (96.72%) that use

sanitary facilities for their family, only 2 HHs (3.28%) have no toilets.

71. Among the 59 surveyed HHs, 20 HHs have bicycles, 39 HHs have motorcycles, 1 HH has a

DVD player, 01 HH has an electric generator, 27 HHs have refrigerators, 05 HHs have

computers and 01 HH has a sewing machine.

3.4. Gender issues

72. Development projects can impact differently on men and women. The impacts on women are

often overlooked when mitigation measures focus solely on the nominal heads of households

alone to the exclusion of other household members. The compensation process associated

with land acquisition has the potential to alienate women from household assets if

compensation is not made to both spouses heading households. Female-headed households

face additional challenges associated with resettlement – especially when they are reliant on

extended family and social networks for the care and socialization of children.

73. A Gender Action Plan (GAP) has been prepared under the SCDP Project. This Gender Action

Plan includes specific actions and strategies that are gender responsive and culturally

appropriate.

29

4. INFORMATION DISCLOSURE AND PUBLIC CONSULTATION

4.1. Information Disclosure and dissemination

74. During RP preparation, information on the subproject was delivered to AHs through the PIB

and through loudspeakers within the project area. The compensation plan will be disclosed to

all AHs before and after submission for approval.

4.2. Public consultation

4.2.1. Meetings with Local Authorities

75. Two consultations have been organized with different stakeholders, including local authorities,

social organizations and affected people. During public consultation meeting the schedule of

the DMS, entitlements and replacement cost for compensation have been disclosed to the

Affected Households. PPMU delivered information on the results of DMS via distribution of

compensation plan to AHs. In the Public Consultation Meeting PPMU and LFDC also

presented (i) Project’s components; (ii.) GOV’s laws and procedures on land acquisition;

ADB’s policies on Involuntary Resettlement; (iii) Project’s Compensation Policy and

Entitlements; (iv) Project Impacts and Entitlements for each type of impact; (v) Preparation of

Resettlement Plan; (vi) Budget Costs and Tentative Implementation Schedule and (vii)

Grievance Redress Mechanism. The meeting allowed the participants to their questions for

clarifications on the resettlement policies, particular compensations and entitlements. Most of

AHs concerned about the compensation price, the time of handing over the land and request

to acquire the remaining land area that insufficient for cultivation. Representative of LFDC

response the AH’s question one by one. Basically, all participants confirmed that they

understood the project’s compensation policies and agreed with the replacement unit costs of

the land acquisition and resettlement plan. (Refer to Appendix 3: Minutes of Public

Consultation.

76. Results of the consultations have been summarized and are reflected in the table below.

Table 17 Meetings with Local Authorities and Affected Households

Date Location Participants Issues Discussed

10 Jan 2017 Quy Thuong Village, Tam Thanh Phu commune

Representatives of: - Tam Ky LFDC - Quang Nam PMU - Urban Management

Dept. - Local authorities - Affected households

Including 12 males and 05 females

Informed the AHs about the Compensation and Resettlement Policy

14 Jan 2017 Community hall of Tam Thanh commune

Representatives of: - Tam Ky LFDC - Quang Nam PMU - Urban Management

Dept. - Local authorities - Affected households

Including 19 males and 25 females

Informed the AHs about the Compensation and Resettlement Policy

30

4.2.2. Consultation with Affected HHs

77. Information dissemination and consultation with affected persons and involved agencies will

reduce the potential for conflicts and minimize the risk of Project delays. Furthermore, this

approach will enable the Project to design the resettlement and rehabilitation program so that

it meets the needs and priorities of the affected people, and in this way, potentially maximizing

the economic and social benefits of the investment. The objectives of the public information

campaign and the consultation program are as follows:

� To fully share information with the AHs about the proposed project components and activities

� To obtain information about the needs and priorities of the AHs, as well as information about their reactions to proposed policies and activities;

� To ensure that AHs are enabled to make fully informed decisions that will directly affect their incomes and quality of life, and that they will have the opportunity to participate in activities and decision-making about issues that will have a direct effect upon them;

� To obtain the maximum level of co-operation and participation of the AHs and communities in activities necessary for resettlement planning and implementation;

� To ensure transparency in all activities related to land acquisition, compensation, resettlement and rehabilitation.

5. GRIEVANCE REDRESS MECHANISM

78. A well-defined grievance redress mechanism (GRM) for SCDP has been established to

address AH’s grievances, complaints, and requests regarding land acquisition,

compensation and resettlement in a timely and satisfactory manner .

79. AHs (men and women) can lodge their complaints regarding any aspect of the land acquisition

and resettlement requirements such as entitlements, rates and payment and procedures for

the implementation of resettlement and income restoration programs.

80. The project grievance mechanism has been set up to address specific grievances relating to

SCDP but also follows the requirements of the Vietnamese laws and regulations. In Vietnam

there is an existing procedure for redress of grievances of certain fields: (i) Grievance Law

No. 02/2011/QH13 dated 11/11/2011 and Decree No.75/2012/ND-CP dated 3/10/2012; (ii)

Law on Denunciation No. 03/2011/QH13 dated 11/11/2011 and Decree No. 76/2012 dated

03/10/2012, and Circular No. 07/2014/TT-TTCP dated 31/10/2014 of the Government

Inspectorate on handling complaints, denunciations and petitions. However, ADB requires a

Grievance mechanism to be established for the project so in implementing the SCDP

Grievance Mechanism an appropriate level of communication and coordination will be

maintained with both of these departments and it has already consulted and disclosed to

affected households before get approval from PPC. And it is approved through the Official

Letter No.3882/UBND-KTTH dated 26 July 2017. The GRM for Dien Bien Phu extension road

will follow the approved GRM of SCDP project.

81. The grievance mechanism is formalized through written procedures and is specifically

addresses the requirements of both the project and affected local communities. In SCDP most

grievances will originate from persons affected by land acquisition and resettlement but can

also originate from damage to property or land caused by construction work or from

environmental damage and as a result of perceived irregularities during bidding processes.

31

82. The grievance mechanism establishes processes and procedures and these form part of an

ongoing community engagement strategy, with regular communication and feedback between

project staff and community members. Questions, suggestions and requests for information

about the project from the community members can be communicated using the same means

as for their concerns or complaints, but specific procedures will be put in place to deal with

their grievances. These procedures will be developed in a participatory manner that is

responsive to the views of all groups within the communities and other stakeholders.

83. The process of GRM for the SCDP project are described as follows.

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Table 18 The process of GRM

Process

Description

Time

• Face to face meeting with Stakeholder • Phone, fax, letter or email • Recorded by Ward officials, Contractor

or PMU staff • Completion and submission of

grievance form

1 Day

• Record grievance in Grievance Form and log on Grievance Database or Logbook

• Receipt of grievance acknowledged through appropriate communication medium, but must be recorded in writing

5 Days

• PMU to coordinate with other concerned agencies and assess and assign grievance significance

7 days

Investigate Grievance and Develop

Response to Grievance

• Consult with relevant parties • Identify further action required • May require site visits and discussions

with other stakeholders

28 Days after

receipt of

grievance

• Response provided to complainant including, if necessary an indication of additional time and resources required to resolve grievance

30 Days after

receipt of

grievance

• Confirm with complainant that grievance can be closed, or determine what follow-up is necessary.

• If the grievance is to be closed, grievance sign-off is required.

38 Days

• Record final sign-off of grievance according to significance

• If grievance cannot be closed return to step 2 to re-assess or recommend whether third party arbitration is necessary

38 Days to 3

Months

depending on

significance

Identification of

Grievance

Grievance logged and

acknowledged

Assess significance of

grievance

Investigate grievance

and develop response

Communication of

response

Complainant

Response

Close grievance

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6. POLICY AND LEGAL FRAMEWORK FOR RESETTLEMENT

84. The legal and policy framework for compensation, resettlement and rehabilitation applied for

this subproject is defined by current laws, decrees and related legal documents of the

Government of Vietnam and ADB SPS (2009) policies on Involuntary Resettlement. In the

event of any discrepancy between the laws and regulations of the Government and the

procedures and policies of the ADB on involuntary resettlement, the policies and requirements

of the ADB shall be complied with. This is entirely consistent with the Government's Decree

No.16/2016 /ND-CP dated 16/03/20162 on the management and use of official development

assistance (ODA) and preferential loans from donors. This is the basic principle stated in

Decree No.16/2016 /ND-CP, Article 46 regarding the compensation, support and

resettlement: "The compensation, support and resettlement of programs and projects shall

comply with the provisions of the current laws and international treaties on ODA and

concessional loans the Socialist Republic of Vietnam is a member. In case of differences

between the provisions of the domestic laws with the international treaties, the international

treaties shall be applied". Ordinance No.34/2007/PL-UBTVQH11 of the National Assembly

dated 20/4/2007 on the democracy implementation in communes, wards and towns regulating

the public information on "projects, works and investment priorities, implementation schedule,

compensation, support and resettlement plan for land clearance related to such projects and

works in communes, wards and towns".

6.1. Relevant Vietnamese Legislation

85. The current legal documents required by law for land acquisition, compensation, support and resettlement of the Government of Vietnam are as follows:

� Land Law No.45/2013/QH13 dated November 29, 2013 of the National Assembly of

the Socialist Republic of Vietnam, replacing Land Law 2003;

� Decree No.43/2014/ND-CP dated May 15, 2014 of the Government, detailing the

implementation of some provisions of Land Law 2013;

� Decree No.44/2014/ND-CP dated May 15, 2014 of the Government on evaluating land

prices;

� Decree No.45/2014/ND-CP dated May 15, 2014 of the Government, regulating the

collection of land-use lease;

� Decree No.46/2014/NĐ-CP dated May 2014 of the Government, regulating the water

surface lease;

� Decree No.47/2014/ND-CP dated May 15, 2014 of the Government on compensation,

support and resettlement when the State acquires land, replacing Decree

197/2004/ND-CP and Decree 69/2009/ND-CP;

� Decree No.104/2014/ND-CP dated November 14, 2014 of the Government on land

price frame;

� Circular No.36/2014/TT-BTNMT dated June 30, 2014, detailing the land valuation

method; building and adjustment of specific land prices and consultation for land-price

valuation;

2 This RP is prepared in 2017, therefore the The Decree No 16/2016/NĐ-CP ngày 16/3/2016 on the management and use of official

development assistance (ODA) and preferential loans from donors will be used and replaced for Decree 38/2013/ND-CP

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� Circular No.37/2014/TT-BTNMT dated June 30, 2014, detailing regulations on

compensation, support and resettlement when the State acquires land;

� Decree 35/2015/NĐ-CP dated 13/04/2015 on the management of paddy land use;

� Decree 11/2010/ND-CP, dated on 24 Feb 2010 on management and protection of

road, and Decree 100/2013/ND-CP amending Decree 11/2010/ND-CP.

� Decree No. 16/2016/NĐ-CP dated March 16, 2016, on the management and use of

official development assistance (ODA) and preferential loans from donors;

� Ordinance No.34/2007//PL-UBTVQH dated 20/4/2007 of the National Assembly

Standing Committee on the implementation of democracy in communes, wards and

towns;

� Law on Complaints No.02/2011/QH1 dated November 11, 2011 of the National

Assembly of the Socialist Republic of Vietnam;

� Law on Denunciation No.03/2011/QH13 dated November 11, 2011 of the National

Assembly of the Socialist Republic of Vietnam;

� Decree No.75/2012/ND-CP dated October 3, 2012, detailing the execution of some

articles of the Law on Complaints;

� Decree No.76/2012/ND-CP dated October 3, 2012 detailing the execution of some

articles of the Law on Denunciation.

86. The provisions relating to public disclosure of Land Law 45/20013/QH13, Clause 1, Article 67

requires disclosure of information for affected persons "Before issuing a decision on land

recovery, at least 90 days prior to the recovery of agricultural land or 180 days prior to the

recovery of non-agricultural land, competent state agencies shall notify the land users of the

land recovery. The contents to be notified include land recovery, investigation, survey,

measurement and inventory plans".

87. The provisions concerning conservation of cultural property are: The Law on Heritage dated

June 29, 2001 and the Law on amending and supplementing a number of articles of the Law

on Cultural Heritage dated June 18, 2009; Decree No.98/2010/ND-CP dated September 21,

2010, detailing the implementation of some articles of the Law on Cultural Heritage and the

Law amending and supplementing a number of articles of the Law on Cultural Heritage.

6.2. Quang Nam province Decisions on land acquisition, compensation and resettlement in the province

88. In addition to the legal documents of the Government of Vietnam, Quang Nam province has

issued legal documents, guiding the application of the Government’s provisions and

implementation of land acquisition, compensation and resettlement in Quang Nam province.

The following decisions provide the provisions for compensation, support and resettlement

when the Government acquires land in the province:

• Decision No.43/2014/QD-UBND dated December 22, 2014 of the People's Committee of Quang Nam province that provides regulations on compensation, support and resettlement when the State recovers land in Quang Nam province;

• Decision No.02/2016/QD0UBND dated June 15, 2016 of the People's Committee of Quang Nam province that provides regulations on amendments and supplements to some articles in the Decision No.43/2014/QD-UBND dated December 22, 2014 of the regulation

35

on compensation, assistance and resettlement when the state acquire land in Quang Nam province;

• Decision No.44/2014/QD-UBND dated December 22, 2014 of the People's Committee of Quang Nam province that promulgates regulations on unit prices for building houses, structures, works, assets on land to make restitution when the State acquires land in Quang Nam province;

• Decision No.39/2015/QD-UBND dated December 21, 2015 of the People's Committee of Quang Nam province that issues regulations on the unit prices of crops and trees; tree planting density; livestock, support rates for marine/river occupation to perform compensation, support and resettlement when the State recovers land in Quang Nam province;

• Decision No.48/2014/QD-UBND dated December 25, 2014 of the People's Committee of Quang Nam province, promulgating regulations on land prices, land price tariff for period 2015 to 2019 in Quang Nam province;

6.3. ADB social Safeguards Policy and Requirements

89. The ADB Safeguard Policy Statement (2009) consolidates three existing safeguard policies:

involuntary resettlement (IR), indigenous peoples (IP), and environment. The objectives of the

IR policy are to (i) avoid involuntary resettlement, (ii) explore alternatives to avoid involuntary

resettlement, (iii) restore livelihoods and (iv) improve living standards of poor and vulnerable

households. The IP policy objectives are to (i) design and implement projects that fosters full

respect for IP's identity, dignity, human rights, livelihoods systems, and cultural systems, and

cultural uniqueness as defined by IPs themselves and (ii) ensure that IPs receive culturally

appropriate social and economic benefits, do not suffer adverse impacts as a result of

projects, and can participate actively in projects that affect them. The policy on

environment is discussed in a separate environment report.

90. The ADB Policy on Gender and Development (1998) adopts gender mainstreaming as a key

strategy for promoting gender equity, and for ensuring that women participate in and that their

needs are explicitly addressed in the decision-making process for development

activities. The new safeguard policy and requirements also reiterates the importance of

including gender issues in the preparation of safeguards documents at all stages to ensure

that gender concerns are incorporated, including gender-specific consultation and

information disclosure. This includes special attention to guarantee women’s assets,

property, and land-use rights and restoration/improvement of their living standards; and to

ensure that women will receive project benefits. Other policies of the ADB that have a bearing

on resettlement planning and implementation are the (i) Public Communications Policy; and

(ii) Accountability Mechanism Policy.

6.4. Project Principles

91. The objectives of the ADB Safeguard Policy Statement (SPS-2009) concerning Involuntary

Resettlement are to avoid or minimize the impacts on people, businesses and others affected

by the acquisition of land and other assets, including livelihood and income. Where

resettlement is not avoidable, the overall objective of the ADB SPS is to enhance, or at least

restore, the livelihoods of all AHs in real terms relative to pre-project levels; and to improve

the standards of living of the displaced poor and other vulnerable groups by compensating for

lost assets at replacement costs and by providing, as necessary, various forms of support.

The main policy principles are to:

36

a. Screen the project early on to identify past, present & future involuntary

resettlement impacts and risks. Determine the scope of resettlement planning

through a survey and/or census of AHs, including a gender analysis related to

resettlement impacts and risks.

b. Carry out meaningful consultations with affected persons, host communities, and

concerned non-government organizations. Inform all affected Households of their

entitlements and resettlement options. Ensure their participation in planning,

implementation, and monitoring and evaluation of resettlement programs. Pay

particular attention to the needs of vulnerable groups, especially those below the

poverty line, the landless, the elderly, women and children, and Indigenous Peoples,

and those without legal title to land, and ensure their participation in consultations.

Establish a grievance redress mechanism to receive and facilitate resolution of the

affected persons’ concerns. Support the social and cultural institutions of Affected

Households and their host population. Where involuntary resettlement impacts and

risks are highly complex and sensitive, compensation and resettlement decisions

should be preceded by a social preparation phase.

c. Improve, or at least restore, the livelihoods of all Affected Households through (i) land-

based resettlement strategies when affected livelihoods are land based where

possible or cash compensation at replacement value for land when the loss of land

does not undermine livelihoods, (ii) prompt replacement of assets with access to

assets of equal or higher value, (iii) prompt compensation at full replacement cost for

assets that cannot be restored, and (iv) additional revenues and services through

benefit sharing schemes where possible.

d. Provide physically and economically Affected Households with needed assistance,

including the following: (i) if there is relocation, secured tenure to relocation land,

better housing at resettlement sites with comparable access to employment and

production opportunities, social and economic integration of resettled persons into

their host communities, and extension of project benefits to host communities; (ii)

transitional support and development assistance, such as land development, credit

facilities, training, or employment opportunities; and (iii) civic infrastructure and

community services, as required.

e. Improve the standards of living of the displaced poor and other vulnerable groups,

including women, to at least national minimum standards. In rural areas, provide them

with legal and affordable access to land and resources, and in urban areas, provide

them with appropriate income sources and legal and affordable access to adequate

housing.

f. Develop procedures in a transparent, consistent, and equitable manner if land

acquisition is through negotiated settlement to ensure that those people who enter into

negotiated settlements will maintain an equal or better income and livelihood status.

g. Ensure that Affected Households without titles to land or any recognizable legal rights

to land are eligible for resettlement assistance and compensation for loss of non-land

assets.

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h. Prepare a resettlement plan elaborating Affected Households’ entitlements, the

income and livelihood restoration strategy, institutional arrangements, monitoring and

reporting framework, budget, and time-bound implementation schedule.

i. Disclose a final resettlement plan, including documentation of the consultation process

in a timely manner, before project appraisal, in an accessible place and a form and

language(s) understandable to affected persons and other stakeholders. Disclose the

final resettlement plan and its updates to affected persons and other stakeholders.

j. Conceive and execute involuntary resettlement as part of a development project or

program. Include the full costs of resettlement in the presentation of project’s costs

and benefits. For a project with significant involuntary resettlement impacts, consider

implementing the involuntary resettlement component of the project as a stand-alone

operation.

k. Pay compensation and provide other resettlement entitlements before physical or

economic displacement. Implement the resettlement plan under close supervision

throughout project implementation.

l. Monitor and assess resettlement outcomes, their impacts on the standards of living of

Affected Households, and whether the objectives of the resettlement plan have been

achieved by taking into account the baseline conditions and the results of resettlement

monitoring. Disclose monitoring reports.

6.5. Eligibility Policy

92. All AHs who are identified in the project-impacted areas by the cut-off date will be entitled

to compensation for their affected assets and rehabilitation measures sufficient to assist them

to improve or at least maintain their pre-project living standards and income-earning capacity.

The cut-off date will be the date of the notice of land acquisition once the project will be

formally approved.

93. Those who encroach into the Component area after the cut-off date will not be entitled to

compensation or any other assistance. They will be given sufficient advance notice to vacate

premises and dismantle affected structures prior to project implementation.

6.6. Reconciliation of Government and ADB Policy on Resettlement

94. The resettlement and compensation policies for the Secondary City Development Project are

to be in accordance with ADB requirements and laws of the Government of the Socialist

Republic of Vietnam. Under the ADB policy, it is a condition of funding that the Bank’s

requirements are met in relation to resettlement, compensation and rehabilitation to all DPs

as defined in the ADB SPS 2009 on Involuntary Resettlement.

95. With the promulgation of Land Law 2013 and the guiding documents, including Decree

No.43/2014/ND-CP, Decree No.44/2014/ND-CP, Decree No.47/2014/ND-CP which are

directly related to the land acquisition, compensation, support and resettlement, the policy of

the Government of Vietnam has become more consistent with the ADB's policy statement on

involuntary resettlement (SPS 2009). However, there are some differences between the

Government’s policies and the ADB's policy on involuntary resettlement.

38

96. Decree No.43/2014/ND-CP: This decree provides common rules on the matters relating to

granting of land-use right certificates (LURC) and land-use issues such as land quota,

conditions for the transfer of land-use rights, administrative procedures related to land use

(LURC, land recovery and requisition, land dispute settlement...).

97. Decree No.44/2014/ND-CP on land prices. This Decree prescribes the valuation method for

land price; building and adjustment of land price frame; specific land valuation and consulting

activities for determining prices. Under the provisions of this decree, when the common land

prices in the market increase 20% or more compared with the maximum land prices or

reduces 20% or more compared with the minimum land prices in the land price frame for the

period of 180 days or more, the provincial People's Committee will have to adjust the land

prices.

98. Land Law 2013, Decree No.47 and Circular No.37 are the main legal instruments that give

guidance and regulations on the rights and entitlements to the compensation, support and

resettlement when the State recovers land. Under the provisions of Decree No.47/2014/ND-

CP, when the State recovers land, if users do not have papers on land-use rights stipulated

in Clause 1, 2 and 3 of Article 100 of the Land Law and Article 18 of Decree No.43/2014/ND-

CP but are eligible for the issuance of certificates of land-use rights, ownerships of houses

and other assets attached to land, they shall be compensated for land.

99. The differences between the Government’s laws and decrees and the ADB's policy on

resettlement and compensation and how to solve these differences for this subproject are

presented in the table below.

Table 19 Gaps between National Laws and ADB Policies and Gap Filling Measures

Land Law 2013, Decree 47/2014/ND-CP, Decree

44/2014/ND-CP ADB SPS 2009 Project Policy

Criteria of severe AHs

Decree 47/2014/ND-CP, Article 19, Item 3: APs losing 30% or more of productive agriculture land are considered severely impacted and are entitled to livelihood restoration measures.

The involuntary resettlement impacts of an ADB-supported project are considered significant if 200 or more persons will experience major impacts, which are defined as (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income generating).

Losing 10% or more of the household’s productive assets and/or relocation shall be considered as the threshold of severely affected HHs

39

Land Law 2013, Decree 47/2014/ND-CP, Decree

44/2014/ND-CP ADB SPS 2009 Project Policy

APs without LURC

Land Law 2013, Article 77, item 2 and article 92: Persons who has used land before 1st July 2004 and directly be involved in agriculture production on the acquired land without LURC or illegalizable will be compensated for the acquired land area but not exceed quota of agricultural land allocation. But no compensation for non-land assets in the following cases: (i) the assets subject to the land recovery as stipulated in one of items a, b, d, đ, e, I, clause 1, article 64 and items b, d, clause 1, article 65 of the Land Law 2013; the assets created after the notification on land acquisition; and (iii) unused public infrastructures and other works.

Those APs without legal title to land will be included in consultations. Ensure that APs without titles to land, or any recognizable legal rights to land, are eligible for resettlement assistance and compensation for loss of non-land assets created before cut-off date at replacement costs, including dwellings, structures and other improvements to land such as crops, irrigation, at full replacement cost.

Project affected people, without legal or recognizable legal claims to land acquired, will be equally entitled to participation in consultations and project benefit schemes where possible, and be compensated for their losses of non-land assets at replacement costs, such as dwellings and structures created before cut-off date. They will be entitled to resettlement assistance and social support to assist them to improve or at least restore their pre-project living standards and income levels.

Safeguards cover involuntary restrictions on land use or on access to legally designated parks and protected areas. Covers temporary and partial losses.

Compensation for structures

Land Law 2013, Article 89, item 1: houses/structures used for living purpose will be compensated at replacement cost. Decree 47, article 9: other houses/structures will be compensated equal to the remaining value of the affected house plus some percentage of current value but total compensation amount is not exceed value of the new house/structure.

Rate of compensation for affected houses/structures and other assets will be calculated at full replacement costs without any deductions for salvageable materials or depreciation, based upon: i) fair market value, ii) transaction costs, iii) interest accrued, iv) transitional and restoration costs, v) other applicable payments.

Full compensation at replacement cost will be paid for all affected structures without any deductions for salvageable materials or depreciation, full replacement costs, based upon: i) fair market value, ii) transaction costs, iii) interest accrued, iv) transitional and restoration costs, v) other applicable payments

Monitoring No monitoring indicators indicated

Monitoring indicators specified for internal and external monitoring and reporting. In case of significant or sensitive impacts, an external monitoring organization is required to conduct monitoring on RP implementation

The EA must undertake internal monitoring according to the critical indicators.

Since anticipated negative impacts of the project are minor, there is no need to recruit an external monitoring organization.

40

Land Law 2013, Decree 47/2014/ND-CP, Decree

44/2014/ND-CP ADB SPS 2009 Project Policy

Third-party validation of consultation related to land donations

Not required. The borrower is required to engage an independent third-party to document the negotiation and settlement processes to openly address the risks of asymmetry of information and bargaining power of the parties involved in such transactions.

In case of land donations involving marginal portions of land, the LIC will verify and report on the negotiation and settlement processes as part of the due diligence report. A voluntary donation form signed by the landowners, witnesses, and village leaders will be attached in the report.

7. ENTITLEMENTS, ASSISTANCE AND BENEFITS

100. The rights and entitlements of people affected by the project (including compensation,

allowances, resettlement and livelihood restoration) are detailed in the entitlements matrix

below, which are consistent with the impacts identified during the detailed measurement

survey (DMS). It should be noted that these benefits cannot be reduced. Benefits will be

supplemented, if necessary, based on the results of the DMS and consultation with displaced

persons. Project entitlements are based on the governmental and provincial decisions about

compensation, resettlement and rehabilitation measures as well as ADB's SPS (2009) on

involuntary resettlement. The beneficiaries should be consistent with the cut-off date.

101. This matrix has been discussed and agreed with the Center for and Land Fund Development

and the PMU, in charge of the implementation of resettlement activities on behalf of Tam Ky

People’s Committee.

102. Entitlements for each type of AHs are based on the types and levels of losses. The

entitlements also provide various measures aimed at providing opportunities for AHs to

obtain development benefits from the project as well as assisting vulnerable AHs to improve

their living standards. The entitlement matrix for people affected by extension road 3B is

shown as follows.

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Table 20 Entitlement Matrix

No Impact/Influence and

application (*)

Level of impacts Eligible persons Entitlements Implementation issues

A Permanent impact

I LAND

1.1 Agriculture land impact (paddy land, annual crop land, perennial crop land, types of forest land, aquaculture land)

Marginal impact: losing less than 10% of their total productive land

Land users with LURC08

AHs

Cash compensation for affected land area at replacement cost; and

Subsistent allowance: Support in cash of 400,000 VND/person/month for all household members for 04 months if no relocation, 12 months if relocation; and

Cash allowance for job training/creation, equal to:

- 3 times of value of affected paddy land area, annual crop land or salt-making land;

- 2.5 times of value of affected aquaculture land;-

Supports and allowances will be paid simultaneously with the payment of compensation.

Support for job training/creation is applied only for households and individuals who are directly involved in agricultural production;

A supported area shall not exceed a local standard area of allocated agricultural land

Significant impact: losing 10% or more of their total productive land (remaining unaffected portion is viable for productive use)

Land users with LURC 57 AHs

Cash compensation for affected land area at replacement cost; and

Subsistent allowance: Support in cash of 400,000 VND/person/month for all household members for:

- Losing 10-30% of total land holding: 04 months if no relocation, 12 months if relocation;

- losing 30-70% of total land holding: 06 months if no relocation, 12 months if relocation; and

If remaining land area is unusable or uneconomic, it will be recovered and compensated at replacement cost.

Supports and allowances will be paid simultaneously with the payment of compensation.

Support for job training/creation is applied only for households and individuals which are

42

No Impact/Influence and

application (*)

Level of impacts Eligible persons Entitlements Implementation issues

- losing more than 70% of total land holding: 12 months if no relocation, 24 months if relocation. AND

Cash allowance for job training/creation, equal to:

- 3 times of value of affected paddy land area, annual crop land or salt-making land;

- 2.5 times of value of affected aquaculture land;-

directly involved in agricultural production.

A supported area shall not exceed a local standard area of allocated agricultural land.

1.2 Residential land impact

19 AHs

Acquired land without houses/structure thereon

Land user with LURC 04

AHs

Cash compensation for land and investment cost on remaining land for the acquired land at replacement cost.

Acquired land with houses/structure thereon and have to resettle

Land user with LURC

15 AHs

- Cash compensation for the acquired land at replacement cost; and

- Compensation for house/structure at replacement cost without deduction of salvageable materials; and

- Transition assistance regulated in Part III below; and

- House rental support of 1,000,000 VND/month/household for 12 months; and

- Compensation for moving cost, equal to the rates of 3,000,000 VND (01 HH), 5,000,000 VND (01 HH); 5,500,000 VND (05 HHs) and 6,000,000 VND (08 hộ).

II NON-LAND ASSETS

43

No Impact/Influence and

application (*)

Level of impacts Eligible persons Entitlements Implementation issues

2.1 Impact on houses and structures

Totally Impacted house (or partly affected but the remaining part is not usable)

Land-owners regardless LURC or legalizable for LURC with houses/structures created before the cut-off date.

15 AHs

Cash compensation at replacement cost for the affected house without deduction of salvageable materials.

Assets, attached to the affected land built after the notice of land acquisition (cut-off date), shall not be compensated.

2.2 Impact on plants and crops

All plants/crops created before the cut-off date on affected land regardless of ownership status.

65 AHs

Cash compensation for damaged plants/crops at market values at time of compensation.

Affected households will be notified of land acquisition prior to 90 days so that they can harvest crops or stop farming on land to be recovered.

III TRANSITION ASSISTANCE AND ALLOWANCES

3.1 Subsistent (Life stabilization) allowance

Severe impact: losing 10% or more of productive land, or relocation

Land users regardless LURC status and directly farming

57 AHs

a) Subsistent (Life Stabilization) allowance

- losing less than 30% of productive land: Cash allowance of 400,000 VND (equivalent to 30kg rice) per person per month for all family members for a period of 4 months.

- losing 30-70% of productive land: Cash allowance of 400,000 VND (equivalent to 30kg rice) per person per month for all family members for a period of 6 months if no relocation and 12 months if relocation;

- losing 70-100% loss of productive land: Cash grant of 400,000VND (equivalent to 30kg rice) per household member for a period of 12 months if not required to relocate and for a period of 24 months if required to relocate;

AHs not eligible for compensation of affected agricultural land will be entitled to stabilization allowance and income restoration program.

44

No Impact/Influence and

application (*)

Level of impacts Eligible persons Entitlements Implementation issues

b) Entitled to participation in the income restoration program (IRP)

3.2 Vulnerable group

Affected by the subproject

01 AH - 3,000,000 VND/household.

The support amount will be paid simultaneously with the payment of compensation.

3.3 Rewards

All AHs and Ors who hand over land on time.

65 AHs

For the recovery of agricultural land (including gardens, ponds and houses in the same parcels of land), relocation of graves and structures, the bonus will be equal to 5% of total value of compensation and assistance of land and property on land to be acquired but the maximum is not higher than 7,000,000 VND/household for the cases to be recovered more than 70% of agricultural land and 5,000,000 VND/household for other cases.

For the recovery of residential land, production/business land, non-agricultural land, the bonus will equal to 5% of the total value of compensation, support for acquired land and property on acquired land but the maximum amount is not higher than 10,000,000 VND/household for households who move entire houses, building or property on land and 5,000,000 VND/household for other cases.

Moving on schedule as notified by the Compensation Board.

Households, organizations and individuals whose business land, residential land, agricultural land has just been recovered but handed over to the subproject on time, they will be rewarded both bonuses at the same time.

B Temporary impacts

Temporary impact during construction

Impact less than 2 years

Land users regardless land use status;

All assets on affected land regardless ownership status.

No compensation for land because it will be returned to owners after using.

Compensation for standing trees/crops and income lost during period of temporary use.

All negative impacts during construction should be considered and compensated adequately and timely under the project policy.

45

No Impact/Influence and

application (*)

Level of impacts Eligible persons Entitlements Implementation issues

For property on affected land, the compensation will base on the replacement cost as stated above.

Improve or at least restore the affected land to pre-project condition before returning to the owners.

All the crops and trees lost or impacted during the construction will be compensated as rental equally to the income loss of the land owner.

Temporary impacts shall be addressed under the external monitoring reports and the internal monitoring reports.

Impact more than 2 years

Land users regardless land use status

Pay compensation for income lost from subsequent duration or compensation for land if required by the land owner.

46

8. RELOCATIONS AND RESETTLEMENT SITES

103. According to the DMS data and through meaningful consultations with AHs, 15 households

have to relocate and they agreed to move to Tan Thanh and Tam Phu Resettlement Sites

which are about 0.9 km from their existing residences. Additionally, these sites are also the

host resettlement sites where affected people in Dien Bien Phu road (Package TK-02) have

already relocated to live, therefore, their beneficiaries and entitlements will be kept the same,

this is one of advantages for them in a new area.

104. Two households agreed to relocate to Tan Thanh and 13 households agreed to relocate to

Tam Phu Resettlement Site. The Land Fund Development Center of Tam Ky city is

responsible for handing over land plots in the resettlement sites for relocated households and

working with the city authorities to issue Land Use Right Certificates (LURC) to the relocated

households without any fees related to the issuance of LURC. According to the Land Law

2013, LURC will include the ownership of houses constructed thereon. Therefore, LURC

should be granted to the relocated households after completion of house construction.

Figure 3 Location of Tam Ky City Resettlement Sites

9. INCOME RESTORATION PROGRAME

9.1. Need for an Income Restoration Program

105. The adverse impact on income is one of the most significant effects of resettlement for men

and women, the effects of which can be long lasting with inter-generational consequences.

Restoration of income is one of the greatest challenges to successful post-resettlement

rehabilitation. The success of resettlement planning in restoring living conditions is thus

inextricably bound to income restoration and effective income restoration in turn necessitates

a clear understanding of livelihoods, capacities and risks faced by those displaced.

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Table 21 Income Restoration Measures

Affected Livelihood Income Restoration Measures

Severely AHs

Living stabilization allowance (income support) for 6-24 months (cash allowance); refer to the sub-item I.2.2 in the table 23 Job creation assistance allowance (equivalent to 2 to 3 times the PPC compensation rate per m2

for agriculture land (cash allowance); refer to the sub-item I.2.21 in the table 23

Vocational Training for people in working age (based on results of need assessment survey)

Vulnerable AHs Assistance to poor HHs and other categories of vulnerable HHs.

106. It is proposed that the IRP will be implemented by the Tam Ky City Agriculture Extension

Services Centre under the Department of Agriculture and Rural Department (for agriculture

activities) and by the Tam Ky City Vocational training Centre under the Department of Labour

Invalids and Social Affairs (for training ).

9.2. Vocational Training for affected households

107. According to the result of survey, most of APs in Tam Thanh and Tam Phu communes would

like to learn cooking and do small business.Currently, there is the Vietnam – Korea joint

project of Tam Thanh Mural Village was developed from June 2016 by the Korean

Foundation. The aim of project is “Art for Better Community” and now this attracts a

considerable of tourist to visit and generates a significant income to people around the project.

The extra income is from opening the small food shop to sell the local special/ traditional

foods and seafood.

108. The number of person entitled to the IRP is about 85 persons (of 57 severely AHs and

vulnerable AH). Tam Ky City has its own Employment Resource Center (VTC) to provide

vocational training. Trainees under working age range (women is 15- 55 years old and men

are 15 - 60 years old) are entitled to participation in the training without payment. Most of the

training sessions are short-term of 3 months.

109. The Tam Ky City Vocational Training Center (VTC) will be responsible for conducting

occupational training courses according to the need of participants.

9.5 Budget for implementation of IRP

110. The budget for IRP of 85 affected people will be estimated based on the Decision 3577/QĐ-

UBND dated October 14, 2016 as table below .

Table 22 Estimation budget for Income Restoration Programe

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No. of

Eligible

person

Type of

vocation

Training cost

allowance (1

person/course)

Meal allowance

(meal/person/lear

ning day)

Learning

day

(estimated)

Amount

85 Cooking/S

mall

business

3,000,000 30,000 66 days 423,300,000

111. Total cost estimate for the Income Restoration Program for AHs in the Dien Bien Phu extension road (3B road) is estimated about 423,300,000 VND, equivalent to 18,897 USD. This budget will be provided by Quang Nam PPC through counterpart fund. The IRP progress, budget as well as the number of participants will be monitored in the Semi-annual Internal Monitoring Report3.

10. RESETTLEMENT BUDGET

10.1. Source of budget

112. All costs for land acquisition, compensation and resettlement of the sub-project will be taken

from the counterpart fund of Quang Nam province.

10.2. Replacement cost survey

113. The Da Nang Evaluation and Financial Service Joint Stock Company was employed to survey

market prices as a basis for compensation of affected households at replacement cost and

these prices will be discussed with affected households in public consultation meetings. The

method of determination of replacement cost are for land, house, structure, trees and crops

are directive comparison method, pricing methods and collection methods. The people living

near the subproject area is also selected to interview also to identify the exchange prices.

The result of study is specified in the Certificate of Evaluation (Appendix 4) was issued and

submitted to Tam Ky Land Fund Development Branch on 27 March 2017.

10.3. Estimation of Resettlement cost

114. Table 23 summarizes the estimated resettlement cost of the sub-project, including (i)

compensation for permanently acquired land,; (ii) compensation for structures, houses, trees,

crops and tombs; (iii) allowances; (iv) administration and implementation cost; and (v)

contingency cost. The resettlement cost excludes the costs for support consultancy and

external monitoring.

115. Based on the result of DMS and agreed replacement prices, the total estimated cost for the

implementation of the resettlement plan is VND 22,189,834,865 equivalent to USD 990,618

(the rate of exchange: 1USD = 22,400 VND). The details are shown in Table 233 below.

3 The Quarterly Internal Monitoring Report is prepared if requested

49

Table 23 Estimation Resettlement Compensation Cost

Nr Items Unit Amount

I Compensation and allowances VNĐ 15,453,308,133

I.1 Compensation VNĐ 10,813,815,935

I.1.1 Land VNĐ 3,103,338,800

I.1.2 Houses/structures/tomb VNĐ 7,385,050,895

1.1.3 Trees/crops VNĐ 325,426,240

I.2 Allowances VNĐ 4,639,492,198

I.2.1 Job training/creation VNĐ 3,001,760,800

I.2.2 Subsistent assistance + new resident creation

VNĐ 1,053,600,000

I.2.3 Transportation 83,500,000

I.2.4 House rental VNĐ 168,000,000

I.2.5 Reward VNĐ 329,631,398

I.2.6 Vulnerable person (poor HH) VNĐ 3,000,000

II Support for resettlement VNĐ 2,185,370,000

III Administration VNĐ 549,353,562

3.1 Implementation (2%) VNĐ 349,353,562

3.2 Cadastral measurement VNĐ 200,000,000

IV Replacement cost survey (RCS) 100,000,000

V Relocation of infrastructure 1,500,000,000

VI Subtotal (I+II+II+IV+V) VNĐ 19,788,031,695

VII Contingency (10%) (VIx10%) VNĐ 1,978,803,170

VIII Income Restoration Programe (vocational training)

VNĐ 423,000,000

Total (VI+VII) VNĐ 22,189,834,865

USD 990,618

11. INSTITUTIONAL ARRANGEMENTS

11.1. Provincial People’s Committee of Quang Nam Province

1. The Provincial People’s Committee (PPC) of Quang Nam Province is the executing agency

(EA) and will oversee all subproject activities including the implementation of RP. The Quang

Nam PPC will have to endorse the RP. The Quang Nam PPC could also delegate such

endorsement to the Tam Ky City PC. The PPC is responsible for resolving complaints and

grievances of the APs.

50

2. A Project Steering Committee (PSC) is already operating in Tam Ky City and is headed by

the PPC Vice Chairman, and includes representatives of provincial and city government

agencies. The PSC will continue to coordinate the implementation of the Project and provide

policy guidance. The PSC will be chaired by the PPC Vice Chairman, and will normally include

representatives from the following organizations: (i) Department of Construction (DOC); (ii)

Department of Planning and Investment (DPI); (iii) Department of Finance (DOF); (iv)

Department of Natural Resources and Environment (DONRE); (v) Provincial and/or City

Women’s Union (WU); (vi) Chairman or Vice Chairman of the concerned Project City, and

(vii) other agencies or entities that may be recommended by the PPC.

3. The PSC will continue to assist the PPCs by: (i) monitoring Project implementation; (ii) making

decisions related to Project implementation within the power of the local authorities; (iii)

approving Project documents related to, for example, resettlement plans procurement plans,

and bidding and contract documents; and (iv) coordinating relevant agencies of the provinces

and the PMU in the project implementation process.

11.2. Tam Ky City People’s Committee

4. The Tam Ky City People’s Committee (CPC) is the implementing agency (IA) and will oversee

all subproject activities including the implementation of the uRP. If PPC delegates the

endorsement responsibility to the Tam Ky City PC, the CPC will be responsible for

endorsement of the RP and approval of compensation plan.

11.3. Project Management Unit (PMU)

5. A Project Management Unit (PMU) has been established within the existing institutional

structures in Tam Ky City. Tam Ky City PMU is the Implementing Agency (IA) for all sub-

components.

6. The functions of the PMU includes: (i) monitoring and coordinating all Project activities in

subproject cities; (ii) supervising the consultants responsible for design, preparation of tender

documents, construction supervision, and other activities; (iii) preparing bid plans, work

plans, and annual budget plans; (iv) managing the prequalification of contractors, bid

evaluations, bid awarding and contract signing; (v) site compensation and clearance; (vi)

supervising work plans and ensuring quality control of work carried out by contractors and

Project Management and Implementation Support Consultant (PMIS); (vii) supervising and

monitoring project-related resettlement and environmental activities; and (viii) preparing

periodic project progress and annual reports for submission to the PPC and ADB.

7. Related to resettlement, PMU will work closely with local administrative authorities, regarding

resettlement planning and implementation. Together with the PMIS, the PMU will provide

technical support, designs and schedule of the subproject implementation for all parties to

follow up and minimize the potential effects on land and people and make sure that all RP

activities are properly addressed and implemented prior to construction activities. The PMU

will be responsible for the preparation of quarterly resettlement progress reports.

51

11.4. Centre for Land Fund Development of Tam Ky City

8. A new resettlement organization was established at the provincial and district level. Since

2015, the Center for Land Fund Development (CFLD) have been given more responsibilities.

CLFD at the provincial level are under DONRE while at the district/City level they are under

the District/City People's Committees.

9. In Tam Ky City, the Centre for Land Fund Development (CLFD) is established under the Tam

Ky City People’s Committee and has the mandate to implement all resettlement activities.

10. For this project, the Tam Ky City CLFD has been assigned to work directly with PMU to

prepare and implement the resettlement plan with other relevant institutions. The CLFD will

implement the DMS, establish a database of AHs, prepare compensation plans, and make

payments for compensation, assistance and allowances.

Specific to the Project, the CFLD will execute the following tasks:

- Issue Notice of Land Acquisition when the project will be formally approved;

- Inform AHs about Detailed Measurement Survey process;

- Conduct Detailed Measurement Survey;

- Prepare AHs database;

- Prepare compensation plans in line with resettlement plans;

- Prepare individual “AH Compensation Forms” which detail all types of losses with their

corresponding established compensation rates. This will also include all types of relocation

and rehabilitation assistance.

- Inform AHs regarding the payment schedule at least two (2) weeks in advance.

- Present proposed compensation amounts to AHs and explain in detail the AH’s rights

and entitlements based on Project policies and explain how compensation

amounts were calculated;

- If compensation payments are acceptable to AHs, process payment and inform AHs

of the exact date of release of payment;

- Effect compensation payment. Copies of compensation payment documents will be

provided to AHs. Copies will also be provided to the Implementation and Support

Consultants and external agency for monitoring and reporting.

- Review grievances in consultation with main stakeholders and HHs who raised the

grievances, and submit recommendations to resolve grievances to District and Province

PCs.

- Prepare and update regularly a database and lists of AHs, including information regarding

disbursement dates for monitoring purposes.

52

11.5. Local Administrative Authorities (District, Communes/Ward)

11. The concerned local administrative authorities at district and commune level play an important role in the planning and implementation of resettlement-related activities. Their roles and responsibilities are to:

- Coordinate and work closely with the concerned stakeholders in relation to the conduct of

consultation, census and DMS and other resettlement-related activities;

- Act as grievance officers and ensure that grievances are resolved;

- Assist AHs during the negotiation and compensation process;

- Involve the local-based organizations to carry out the RP activities;

- Certify the list of AHs and sign compensation documents; and;

- Monitor and register new settlers in the area. The local authorities will be responsible for

informing residents and new settlers not to construct houses/structures in the areas where

there will be improvements/construction.

11.6. Local Mass Organizations

12. Mass organizations relevant to the various AH profiles, needs and impacts will participate in

the development and implementation of assistance measures for AHs. Mass organizations in

Viet Nam are types of community based organizations. Such organizations would include the

Fatherland Front, Women’s Union, Farmer’s Union and other relevant organizations.

11.7. Project Management and Implementation Support Consultant (PMIS)

13. The Project Management and Implementation Support Consultant (PMIS) will include a local

resettlement specialist, to assist and supervise all social and resettlement- related activities.

The responsibilities of the resettlement specialist include the following:

- Work closely with PMU, Centre for Land Fund Development, local authorities at all levels

on all resettlement-related activities;

- Assist in the conduct of the information campaigns, public consultation and community

participation;

- Assist in the verification of census, inventory of losses and detailed measurement survey

activities;

- Check the accuracy of the AH database prepared and provide improvements if necessary;

- Assist in the preparation of RP;

- Assist and improve, if necessary, procedures for the coordination of resettlement and

compensation activities;

53

- Ensure that grievances are addressed promptly and properly and that grievance redress

mechanism is functioning well;

- Provide necessary training on grievance if needed;

- Establish and implement liaison mechanisms to ensure proper technical and logistical

support to PMU, local administrative authorities, resettlement committees and concerned

government departments

- Establish and implement procedures for ongoing internal monitoring;

- Design and deliver capacity development activities for all relevant agencies, as needed, in

the areas of ADB resettlement policy; participation and communication; gender and

development; and livelihood restoration.

12. IMPLEMENTATION SCHEDULE

14. The plan for the resettlement implementation of this sub-project is presented in the following

table, including (i) preparation the addendum; (ii) implementation of resettlement activities;

and (iii) construction activities. Contractors for each civil works contract can be awarded only

after affected households receive full compensation and are resettled which are confirmed in

the resettlement monitoring report.

15. All resettlement activities will be coordinated with the civil works schedule. Land acquisition

and relocation of affected households cannot commence until this Addendum has been

reviewed and approved by ADB.

16. The EA will not issue a notice to proceed civil works until all compensation for APs have been

satisfactorily completed, agreed rehabilitation assistance is in place, and that the site is free

of all encumbrances.

Table 24 Implementation Schedule

RP Updating Start End

Public Consultation and dissemination of project information

Jan 2017 March - 2017

Conduct DMS based on detailed design 1st Quarter 2017 2nd Quarter 2017

Mobilize independent evaluator to carry out replacement cost survey

1st Quarter 2017 1st Quarter 2017

Prepare the final Addendum 2nd Quarter 2017 3rd Quarter 2017

Consult AHs on subproject impact, entitlements and final options

2nd Quarter 2017 2nd Quarter 2017

Submit RP to ADB for review and concurrence

4th Quarter 2017 4th Quarter 2017

Disclose approved Addendum to AHs and Uploading on ADB website

4th Quarter 2017 4th Quarter 2017

Addendum Implementation

54

Disbursement of Compensation and Payment to Ahs

4th Quarter 2017 4th Quarter 2017

Relocation of AHs and Land clearance 4th Quarter 2017 4th Quarter 2018

Implementation of Income Restoration Program

1st Quarter 2018

Submission of internal and external monitoring report

Quarterly for internal report and semi-annual

for external report

Quarterly for internal report and semi-annual

for external report

ADB has “No Objection” to Notice of Possession of Site to Civil Works Contractor

1st Quarter 2018

Start of Civil Work 2nd Quarter 2018 2nd Quarter 2019

13. MONITORING AND REPORTING

13.1. Internal Monitoring

17. PMU is directly responsible for internal monitoring of RP implementation. In particular, PMU

with assistance from the Project Management and Implementation Support Consultants

(PMIS) will supervise and manage monitoring of resettlement activities and implementation

arrangements.

18. PMU will provide quarterly reports to ADB. PMU will ensure that the reports of the Project

Implementation and Support Consultants include in their progress reports, the status of the

resettlement plan implementation, information on location and numbers of people affected,

compensation amounts paid by item, and assistance provided to AHs.

19. The objectives of the monitoring program are (i) to ensure that the standard of living of AHs

are restored or improved; (ii) to monitor whether the overall project and resettlement

objectives are being met; (iii) to assess if rehabilitation measures and compensation are

sufficient; (iv) to identify problems and risks; and (v) to identify measures to mitigate problems.

20. The range of activities and issues that need to be recorded and verified, include:

- Compensation, allowance payments and delivery of assistance measures;

- Re-establishment of AH settlements and business enterprises;

- Reaction of AHs, in particular, to resettlement and compensation packages; and

- Re-establishment/improvement of income levels

21. The principal indicators for internal monitoring of resettlement activities include the following:

- Timely and complete disbursement of compensation to AHs according to the compensation

policy agreed in the RP;

- Timely and complete delivery of relocation, income restoration and rehabilitation allowances

and measures;

- Allocation of replacement land and development of individual and/or group resettlement

sites and infrastructure;

55

- Public information dissemination and consultation procedures;

- Adequacy of resettlement sites;

- Adherence to grievance procedures and identification of outstanding issues that require

further attention and resolution;

- Attention given to the priorities of AHs regarding the options offered;

- Completion of resettlement activities required before the award of civil works contracts.

- Participation of poor and vulnerable HHs throughout the process of project implementation;

- Restoration and improvement of socioeconomic conditions of AHs.

22. On a quarterly basis, PMU will prepare a resettlement monitoring report for their own sub-

component. The report will be submitted to PCC and ADB. The scope of the report will

include:

- The number of AHs by category of impact, district, commune and village, and the status of

compensation payments, AH relocation and income restoration measures for each category;

(ii) The status of disbursement of cash and allocation of replacement land and housing.

- The amount of funds allocated and disbursed for a) resettlement program operations and

b) compensation, assistance and resettlement activities.

- The activities, levels of participation, outcomes and issues of the Information Dissemination

and Consultation Program

- The status and outcomes of complaints and grievances redress and any outstanding

issues requiring further attention by provincial or district authorities, or ADB assistance.

- Implementation problems, including delays, lack of personnel or capacity, insufficient funds,

etc.; proposed remedial measures; and, revised resettlement implementation schedule.

13.2. External Monitoring and Evaluation

23. PMU has hired an independent External Monitor consultant (EMC) to monitor the

implementation of RP for sub-projects. The EMC’s contract should be amended to include

the external monitoring of the Dien Bien Phu road extension works. The main objectives of

external resettlement monitoring are:

(i) To verify the results of internal monitoring reports prepared by PMU and Center for Land Fund Development (CLFD) of Tam Ky City;

(ii) To examine whether provision of compensation and other agreed forms of assistance complies with the approved RPs;

(iii) To assess whether supplemental assistance measures have been provided in accordance with the IRPs, and the extent to which they have been effective in restoring incomes and living standards for severely affected households;

(iv) To assess the effectiveness, impact and sustainable level of resettlement management agencies and procedures;

56

(v) To propose necessary adjustments in the implementation of RPs and IRPs to improve implementation effectiveness.

24. Strategic lessons for future policy formulation and planning will also be drawn from the monitoring and evaluation of resettlement. This is possible through a Post-Resettlement Implementation Evaluation Study that will be carried out 6-12 months following completion of all resettlement activities.

25. The external monitor will cover specific issues such as, but not limited to, the following:

i. Public consultation and disclosure activities;

ii. Awareness of affected people on resettlement rights and entitlements, grievance redress, resettlement process, and project schedule

iii. Establishment of market rates for land and non-land assets;

iv. Documentation of impacts and payments (DMS, compensation documents,) as per agreed RP;

v. Coordination of resettlement activities with construction schedule;

vi. Land recovery and transfer procedures;

vii. Relocation of households, public assets, and sacred structures

viii. Quality of preparation and adequacy of planned relocation sites

ix. Level of satisfaction of AHs with the provisions and implementation of the RPs;

x. Effectiveness and efficiency of grievance redress mechanism (documentation, process, resolution);

xi. Effectiveness, impact and sustainability of entitlements and rehabilitation measures/income restoration programs, and the need for further improvement, as required;

xii. Gender impacts and strategy;

xiii. Capacity of AHs to restore/re-establish livelihoods and living standards, especially the severely affected, poor and vulnerable households. Monitor and assess the assistance and support provided or to be provided to these households;

xiv. Unanticipated impacts, or any resettlement impacts caused during construction activities;

xv. Participation of AHs in RP planning, updating and implementation;

xvi. Institutional capacity, internal monitoring and reporting;

xvii. Channeling of government funds for payment of land, non-land assets and allowances to the affected households (if done transparently, efficiently, and effectively);

xviii. Integration with host community;

xix. Restoration/improvement of affected public, communal, and community assets.

26. Monitoring of RP implementation will be based on desk review and field visits, meetings with

various ministries and local officials, and affected households. Review baseline data that was

collected under the socio-economic survey during RP preparation and updating to assess

changes in: household income and expenditures, expenditure composition patters, primary

57

and secondary occupations, borrowing amounts and debts patterns, materials conditions and

possessions of consumer items, land area and tenure arrangements, school attendance of

children, health, and distances to public services and infrastructure. Additional survey may

be carried out as necessary. Separate meetings will be held with women and vulnerable

households. Monitoring indicators and findings will be disaggregated by gender.

27. The contract of the External Monitoring Consultant (EMC) is currently ongoing. The

monitoring and evaluation period of Dien Bien Phu road extension is expected to be from

third quarter 2017 to 4th quarter 2019.

28. Monitoring reports will also include a summary of outstanding issues and how these issues

were addressed, and if there are still outstanding issues that require further action, including

a number of case studies that require follow-up monitoring. If the findings indicate that RP

objectives have not been achieved, the external monitor will propose appropriate alternative

actions or approaches. The reports will also describe any good practice and lessons learned

that may be useful for future activities.

29. The EMC will submit semi-annual monitoring report to ADB and PMU within two weeks after

completion of the monitoring activity. The type of reports to be submitted to PMU and ADB

are: (i) Inception Report; (ii) Semi-annual Monitoring Reports; and (iii) Post-evaluation

Report.

58

APPENDIXES

Appendix 1 Public Information Booklet

The Quang Nam Province People’s Committee, with the

assistance from the Asian Development Bank (ADB), is

addressing the needs for the urban development of Tam Ky City.

Projects Construction Investment Management Authority of

Quang Nam Province to manage the Project. The Project

includes 2 components

Component 1

Flood Management – Ban Thach River Dyke completion.

Component 2

Enlargement & improvement of Dien Bien Phu Road (including

bridges) going through 07 wards/communes including: An My,

Phuoc Hoa, Tan Thanh, An Phu wards; and , Tam Thanh, Tam Phu

communes.

Why is this Project necessary to implement?

The refection of the Ban Thach River Dyke will reduce

significantly the extend and frequency of flooding. Flood dykes

will be landscaped and will provide additional recreational

space/walkway for the population.

The roads improvement will provide significantly better access

in the city and will reduce traffic congestion.

Scope of impact

For Component 1, a total of around 300 HHs (20 relocated HHs)

will be affected. For Component 2, a total of around 500 HHs

(130 relocated HHs) will be affected. For the Dien Bien Phu

extension road, a total of around 65 HHs (14 relocated HHs).

Who are the affected households (AHs)?

Entitled AHs are those persons who are located within the

affected area at the date the project will be publicly announced.

The cut-off-date for eligibility is the date of the notification for

land acquisition. Persons who encroach into the area after the

cut-off-date will not be entitled to compensation or any other

form of resettlement assistance.

What are the resettlement policies and principles of the

Project for affected households?

The basic resettlement principles of the Project are:

a) All APs are entitled to be compensated for their lost assets,

incomes and businesses at replacement cost, and provided

with rehabilitation measures sufficient to assist them to

improve or at least maintain their pre-project living

standards, incomes and productive capacity.

b) Lack of legal rights to the assets lost will not prevent APs

from entitlement to compensation.

c) Compensation for affected assets shall be provided at

market rates.

d) Preparation of resettlement plans and their

implementation is to be carried out with participation

and consultation of affected people.

e) Payment of compensation for affected assets and

relocation of AHs to new sites will be completed prior

to commencement of any construction activities.

f) Specific assistance will be provided for ethnic

minorities, female headed-households, families with

disabled, and other vulnerable families.

When the Detailed Measurement Survey (DMS)will take

place?

This activity will be carried out after the detailed design of

the 3 components (end of 2013) has been completed. The

DMS will identify all affected assets (land, structure, trees,

crops etc.) of each HH. The DMS team will be composed of

project representatives (PMU staff), the Resettlement

Committees, commune staff. The DMS will only be carried

out in the presence of the AHs. AHs will be informed prior

to the survey.

When the Project is expected to commence?

The detailed design will take place by the end of 2013. Land

acquisition and resettlement will take place by mid-2014

and the civil works for all components are expected to start

by mid-2015 and be completed in 2018.

When other consultation will take place?

Consultation with AHs will continue during the detailed

design phase and before the DMS. AHs will receive a

written invitation to join the public meetings.

If there are disagreements or problems arising during the

Project such as compensation or general project-related

disputes, do I have the right to complain?

Any AH may file a complaint or grievance. The Project

includes a Grievance Redressal Process and AHs may

present their complaints to the concerned local

administrative officials and RCs, either verbally or in

writing.

The complaint can be filed first at the commune level and

can be elevated to the highest provincial level if the AHs

are not satisfied with the decisions made by the commune

or district. AHs will be exempted from all taxes and

administrative and legal fees associated with filing and

resolving the dispute.

Anybody who has questions or concerns about the Project,

can contact the following persons:

Mr. Dang Ba Du - Director of PMU Quang Nam, 510 Hung

Vuong Street, Tam Ky City, Tel: 0905666999

59

Appendix 2 Minutes of Public Consultation Meetings in Tam Phu Commune

60

61

62

63

64

65

66

Translation:

SOCIALIST REPUBLIC OF VIETNAM

Independence – Freedom – Happiness

MINUTES OF PUBLIC CONSULTATION MEETING

Today, at 8:30 A.M, dated 10th Jan 2017, at Community House of Quy Thuong Village, Tam Phu

Commune. The participants are, as follows:

I. REPRESENTATIVES OF LANDFUND DEVELOPMENT CENTER- TAM KY

BRANCH

Mr. Nguyen Ngoc Trai

Mr. Nguyen Van Minh

Mr. Nguyen Luong Bang

Position: Director

Position: Officer

Position: Officer

II. REPRESENTATIVES OF PROJECT MANAGEMENT UNIT OF INVESTMENT AND

CONSTRUCTION PROJECT IN QUANG NAM PROVINCE

Mr. Huynh Quoc Huy Position: Officer

III. REPRESENTATIVES OF TAM KY CITY AUTHORITIES

Mr. Nguyen Duc Anh Position: Officer of Investment Management Division

IV. REPRESENTATIVES OF LOCAL AUTHORITIES

Mr. Nguyen Van Luong Secretary of Party Committee – Chairman of Tan Phu

Commune People’s Council

Mr. Nguyen Duc Vuong Chairman of Tan Phu Commune People’s Committee

Mr. Do Van Tu Chairman of Vietnam Fatherland Front – Tan Phu

Commune

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Mr. Pham Van Phong Secretary of Party cell of Quy Thuong Village

Mr. Duong Van Anh Leader of People – Quy Thuong Village

Mr. Tran Van Tri Cadastral Officer of the Commune

Mr. Ho Xuan Anh Chairman of Commune Farmer’s Union

Ms. Tran Thi Binh Chairman of Commune Women’s Union

V. HOUSEHOLDS

And households whose land will be acquired for sub-project.

Resided in Quy Thuong Village, Tam Phu Commune, Tam Ky City.

+ Contents of the meeting:

Announcement of policy for investment and construction the project; the resettlement policies for

compensation, support for land clearance for Secondaries Cities Development Project in Quang

Nam, Ha Tinh and Dak Lak province.

- Tam Ky Subproject (Section: Dien Bien Phu Road Extension – Section: Km6+309,8 – Km8

+106,22), section from Tam Phu Commune, Tam Ky City, Quang Nam Province.

- Mr. Nguyen Duc Vuong – Chairman of Tam Phu Commune’s People Committee started

with the reasons of the meeting.

- Mr. Nguyen Ngoc Trai – Director of Land Fund Development Center – Tam Ky Branch:

+ Announcement No.394/TB – UBND dated Sep 13th 2016 of Quang Nam PPC, agreement on

additional location, routes for investing and constructing for completion of Ban Thach River

dyke and Dien Bien Phu Road Extension under SCDP in Quang Nam, Ha Tinh and Dak Lak –

Tam Ky City Subproject.

+ Decision No. 4727/QD-UBND dated Dec 30th 2016 of Quang Nam PPC, approval for

supplement of Feasible Study of SCDP in Quang Nam, Ha Tinh and Dak Lak – Tam Ky City

Subproject ( Component: Dien Bien Phu Road extension – Section: Km6+309,8 – Km8 +

106,22).

+ Legal documents are applied for compensation, support and resettlement:

- Land Law in 2013

- Decree No.43/2014/QD-UBND dated May 15th 2014 of Government, detailed regulations

for Land Law implementation.

- Decree No.47/2014/ND-CP dated May 15th 2014 of Government, regulations on

compensation, compensation, support, resettlement when Government acquires land.

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- Decision No.43/2014/QD-UBND dated 22th December 2014 of Quang Nam Provincial

People’s Committee on promulgation of regulations on compensation, support, resettlement

upon land acquisition in Quang Nam province.

- Decision No.02/2016/QD-UBND dated 15th January 2016 of Quang Nam Provincial

People’s Committee, adjusting and supplementing some Articles on compensation, support,

resettlement upon land acquisition in Quang Nam province attached promulgation to

Decision No.43/2014/QD-UBND dated 22th December 2014 of PPC.

- Decision No.3219/ QD-UBND dated 12th Sep 2016 of Quang Nam PPC, promulgating

regulations process, procedures for compensation, support, resettlement upon land

acquisition in Quang Nam province.

- Decision No.48 /2014/QD-UBND dated 25th December 2014 of Quang Nam Provincial

People’s Committee, promulgation of land price, land pricing table from 2015-2019 in the

province.

- Project Resettlement Policy by the Decision No. Decision No. 1091 TTg-QHQT dated 29

July 2013

- For resettlement: It is estimated to implement the host resettlement site in Quy Thuong

village, land lots will be estimated to be allocated 300m2.

- For resettlement policy: for households whose residential lands are acquired, the

compensation method is land for land for 1st land lot.

- For the views of compensation, support, resettlement works: It is ensured to be public,

democracy, transparent, equality.

- To request Vietnam Fatherland Front – Tan Phu Commune and organizations, members,

local people to monitor the implementation of compensation, support, land clearance

works.

- For the project’s progress: It is expected that the acquired land will be handed – over on

30th Apr. Therefore, local people are requested to make conditions, support and cooperate

well with land clearance team in declaration and inventory.

- Agricultural lands, aquaculture land (ponds,) tombs will be measured detailly,

compensation plans expected to prepare prior to Lunar New Year of 2017 and made 80%

payment for compensation before 22nd Jan 2017 ( equivalent to 25th Dec 2016 – lunar

calendar) in case of getting approval , 100% payment will be made.

- * People’s views:

1/ Mr. Nguyen The Van:

Local people completely agree with the policy of Government for the project. However, timing

for compensation is too fast, especially for housing clearance. Inside the land clearance of

project, there is an ancestral temple, so it is requested that Government arrange other land for

rebuilding the ancestral temples. Years ago, the ancients were planning to build ancestral

temples and left a lot of land lot for this purpose so Government is requested to arrange other

lands for constructing ancestral temples. Are revolutionary cadres being supported when

Government acquires the land?

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2/ Mr. Duong Dao:

- Completely agree with policy for road construction. However, where is the resettlement

land for tombs to be moved?

- House clearance has to go in parallel with arranging resettlement land for the people.

- Prior to ancestral temples to be cleared, it is requested to have a consolidated agreement

from 4 organizations, and arrange other land to reconstruct the ancestral temples .

3/ Ms. Nguyen Thi Luyen

Her house is partly acquired, is it possible to re-build a house in the remaining land? Is resettlement

land being provided for her?

4/ Mr. Nguyen Thanh Choi

Shrimp pond is only partly acquired, he requests that the remaining one be taken because he can

not do business anymore.

- Answers from Mr. Nguyen Ngoc Trai – Director of Land Fund Development Center – Tam Ky

Branch.

- Principally, for agricultural land clearance, within the compensation scope of the project, if 70%

land is acquired, consideration can be made for compensating the whole lot (After households

propose request for compensating the whole land lot)

- For lands of ancestral temples: if the land of ancestral temples is registered with cadastral

documents, consideration will be made for providing another land for reconstruction.

- In resettlement policy, there is no regulation for supporting the revolutionary cadres when their

houses are cleared.

- For houses that are partly cleared, during implementation, consideration will be made for each

specific case.

- In the case of land with tombs, the tombs will be moved to tomb areas in Tam Phu Commune.

If a household has lineage tombs, Government will provide money to buy lands for those lineage

tombs (700,000 dong/ tomb)

- For resettlement policy, equality and transparency are ensured, in which consideration will be

made for families under preferential treatment policy, people with meritorious services to the

revolution, veterans, relatives of martyrs and the potential value of the land before clearance.

- Resettlement policies will provide the following support: support for moving, stability for

production and living, support for families under preferential treatment policy, reward for

obedience to resettlement conditions.

- If the HH needs to fix the remaining part of the house (kitchen, toilet etc), compensation for

house repair will be considered, but it is requested that people write a letter to the Commune PC

for resolving the issues as regulated.

- Resettlement land will not be provided to households in cases where his/her land is only partly

acquired.

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Ideas of Mr. Nguyen Van Luong – Secretary of Party Committee – Chairman of Tan Phu Commune

People’s Council.

- There are many projects which are implemented in Tam Phu commune, however, up to now;

there only one project in Quy Thuong Village. When this project is finished, the socio –

economic situation of the Commune will be developed. On behalf of the Director of the Board,

thank you for the care of the Province, the city, for Tam Phu commune generally and for Quy

Thuong, Ngoc My Village specifically. Mostly agricultural lands and shrimp ponds are acquired

in this project; full land clearance is made for 12 households. It is requested that when

compensation and resettlement are implemented, households quickly accept payment,

compensation and hand over lands for Government to start construction in a timely manner.

- The meeting finishes at 11:00 at the same day, it is public read for people and to be accepted for

the contents.

REPRESENTATIVES OF TAM KY

BRANCH OF LANDFUND

DEVELOPMENT CENTER

(Signed and sealed)

Nguyen Ngoc Trai

REPRESENTATIVES OF PROJECT

MANAGEMENT UNIT OF

INVESTMENT AND

CONSTRUCTION PROJECT OF

QUANG NAM PROVINCE

(Signed)

Huynh Quoc Huy

REPRESENTATIVES OF LOCAL

AUTHORITIES

(Signed)

Duong Van Vinh

REPRESENTATIVES OF DIVISIONS,

DEPARTMENTS OF TAM KY CITY

REPRESENTATIVES OF THE HOUSEHOLDS

(Signed)

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Pham Van Minh, Duong Thanh Dao,

Nguyen Thanh Trung, Duong Gia Tuan

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Appendix 3 Minutes of Public Consultation Meetings in Tam Thanh Commune

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Translation

SOCIALIST REPUBLIC OF VIETNAM

Independence – Freedom – Happiness

MEETING MINUTES

Public policy announcement for project’s implementation of Extension Dien Bien Phu Road

(through Tam Thanh commune, Tam Ky City, Quang Nam Province)

Today, dated 14th Jan 2017, at Meeting Hall of Tam Thanh Commune People’s Committee. The

participants are, as follows:

No. Full name Position/Address

1. Mr. Nguyen Thanh Binh Tam Thanh Commune People’s Committee

2. Mr. Tran Dinh Quy Cadastral officer of Tam Thanh Commune

3. Mr. Tran Minh Hoang Officer of Tam Thanh Commune

4. Mr. Tran Van Be Chairman of Vietnam Fatherland Front – Tam Thanh Commune

5. Ms. Vo Thi Kim Thu Chairman of Commune Women’s Union

6. Mr. Pham Thanh Minh

7. Mr. Nguyen Chuong Ly Chairman of Farmer’s Union- Thanh Tan Village.

8. Mr. Phan Dinh Hai Secretary of Party cell of Thanh Tan Village

9.

10. Mr. Nguyen Ngoc Trai Director of Land Fund Development Center – Tam Ky Branch

11. Mr. Nguyen Luong Bang Officer

12. Mr. Tran Huu Nam Thanh Tan Village

13. Ms. Tran Thi Tac Thanh Tan Village

14. Mr. Do Ngoc Chau Thanh Tan Village

15. Mr. Tran Van Sau Thanh Tan Village

16. Mr. Tran Tan Thu Thanh Tan Village

17. Ms. Huynh Thuy Duong Thanh Tan Village

18. Ms. Nguyen Thi Mai Thanh Tan Village

19. Mr. Nguyen Xuan Nhi Thanh Tan Village

CONTENTS OF THE MEETING:

In implementation of the content of Announcement No.394/TB-UBND dated 19th Sep 2016 of

Quang Nam PPC on Agreement of additional location, orientation for construction investment,

finishing the Dike of Ban Thach River and Dien Bien Phu Road Extension under Secondaries Cities

Development Project in Quang Nam, Ha Tinh and Dak Lak Province – Tam Ky city Subproject.

Land fund Development Center – Tam Ky Branch cooperated with Tam Thanh Commune PPC to

hold public meeting with affected people by project Dien Bien Phu Road Extension, section

through Tam Thanh Commune, for announcing policies on land acquisition, compensation, support

and resettlement.

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Mr. Bind – Chairman of Tam Thanh Commune People’s Committee made statement on the

meeting about purposes and meaning of the project.

Mr. Trai – Director of Land Fund Development Center – Tam Ky Branch disclaimed

announcement on Agreement on location, policies of land acquisition, and investment scope of the

project. Legal documents of Government, Quang Nam PPC on land acquisition, compensation,

support and resettlement.

Procedures for compensation implementation in accordance with Decision No.3219/QD – UBND.

To request households to obey the due date, maximum for 07 days for origin of land, 10 days for

draft plan.

Household’s views:

- To request the consideration to fully compensate for the case of partly affected to

aquaculture land.

- To request announcement of handover land timing.

These followings taken after discussion:

- Timing for aquaculture: expected to finish before 30th Apr 2017.

- For the specific policy, project officers will explain directly to households during

implementation.

- For aquaculture land, consideration will be taken for fully land compensated.

The meeting finishes at 10:30 at the same day, it is public read for the people and to be accepted

for the contents.

PARTICIPANTS

REPRESENTATIVES OF TAM

THANH COMMUNE

(Signed)

Nguyen Thanh Binh

REPRESENTATIVES OF TAM KY

BRANCH OF LANDFUND

DEVELOPMENT CENTER

(Signed and sealed)

Nguyen Ngoc Trai

REPRESENTATIVES OF

HOUSEHOLDS

(Signed)

Tran Huu Nam, Nguyen Thi Tuc

REPRESENTATIVES OF VIETNAM

FATHERLAND FRONT – TAM

THANH COMMUNE AND LOCAL

AUTHORITIES

( Signed)

Vo Thi Kim Thu

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Tran Van Be

Pham Thanh Minh

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Appendix 4 Certificate of Replacement Cost Survey

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Translation:

DANANG APPRAISAL AND

FINANCIAL SERVICE JOINT STOCK

COMPANY

No: 09/CT-DGD – TK

SOCIALIST REPUBLIC OF VIETNAM

Independence – Freedom – Happiness

Danang, dated 27th March 2017

Certificate of Valuation

Respectfully to: Land Fund Development Center - Tam Ky Branch

Based on Principal contract dated 22th March 2017 between the Land Fund Development Center -

Tam Ky Branch and Danang Appraisal and Financial Service Joint Stock Company on the

consulting services for identifying land replacement prices and replacement prices for trees, crops

and animal breeding.

Based on Appraisal Result Report No.09/BC-Cty dated 27th March 2017 of Danang Appraisal and

Financial Service Joint Stock Company.

Danang Appraisal and Financial Service Joint Stock Company provides Certificate of Valuation

for land price No. 09/CT-DGD – TK dated 27th March 2017 with the following contents:

1. Purpose of Appraisal

To serve as a basis to submit to the authorities for approval of land prices for implementation

of compensation.

2. Time of Appraisal

At the time of March 2017.

3. Basis for Appraisal

3.1 Central Government’s documents

- Law No. 11/2012/QH13 dated on June 20, 2012 of The National Assembly on Prices

- Law on Lands No.45/2013/QH13 dated 29th November 2013

- Decree No.89/2013/ND-CP dated 6th August 2013 of Government on detailed regulations

for implementation of price appraisal of the Law on Prices.

- Decree 43/2014/ND-CP, dated 15 May 2014 detailing a number of articles of the Land Law

- Decree 44/2014/ND-CP, dated 15 May2014 on land prices

- Decree No.45/2014/ND-CP dated May 15, 2014 of the Government on collection

of land use levies.

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- Decree No. 47/2014/ND-CP, dated 15 May 2014 on compensation, support and

resettlement upon land recovery.

- Decree No.01/2017/ND-CP dated January 06, 2017 of the Government amending and

supplementing a number of decrees detailing the implementation of the Land Law.

- Circular No.76/2014/TT-BTC dated June 16, 2014 of the Ministry of Finance, guiding

some articles of Decree No.45/2014/ND-CP on land use levy collection.

- Circular No. 36/2014/TT-BTNMT dated June 30, 2014, on land pricing method;

compilation of and adjustment to land price lists; determination of specific land prices and

consultancy on land pricing.

- Circular No. 37/2014/TT-BTNMT dated June 30, 2014 of the Ministry of Natural

Resources and Environment detailing compensation, support and resettlement upon land

recovery by the State.

- Circular No.05-BXD/DT dated 9th February 1993 on the classification of the housing

categories.

- Vietnam Valuation Standards were promulgated at:

- Circular No.158/2014/TT-BTC dated 27th Oct 2014, promulgation of the Standard

Valuation Vietnam Number 01, 02, 03 and 04.

- Circular No.28/2015/TT-BTC dated 06h March 2015 of the Ministry of Finance,

promulgating Vietnam Valuation Criteria No.05, 06 and 07.

- Circular No.126/2015/TT-BTC dated 20th August 2015 of Ministry of Finance,

promulgating Vietnam Valuation Criteria No.08, 09 and 10.

3.2 Local legal documents:

- Decision No.43/2014/QD-UBND dated 22th December 2014 of Quang Nam Provincial

People’s Committee (PPC), promulgation of regulations on compensation, support,

resettlement upon land acquisition in Quang Nam province.

- Decision No.02/2016/QD-UBND dated 15th January 2016 of Quang Nam PPC, adjusting

and supplementing some Articles on compensation, support, resettlement upon land

acquisition in Quang Nam province attached promulgation to Decision No.43/2014/QD-

UBND dated 22th December 2014 of Quang Nam PPC.

- Letter No.443/UBND –KTTH dated 01st February 2016 of Quang Nam PPC, corrigenda of

contents of Clause 3, Article 2 of Decision No.02/2016/QD-UBND dated 15th January

2016.

- Decision No.44/2014/QD-UBND dated 22th December 2014 of Quang Nam PPC,

promulgation on pricing regulations of building houses, structures, constructions, assets on

lands for compensation, support and resettlement when Government acquires land in

Quang Nam province.

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- Decision No.39/2015/QD-UBND dated 21st December 2015 of Quang Nam PPC,

promulgation on unit prices of trees, crops, tree density, cattles ; supporting level for marine

and aquaculture exploiting assets for compensation, support and resettlement when

Government acquires land in Quang Nam province.

- Decision No.48/2014/QD-UBND dated 25th December 2014 of Quang Nam PPC,

promulgation of land price, land pricing table from 2015-2019 in the province.

- Decision No.42/2015/QD-UBND dated 22nd December 2015 of Quang Nam PPC,

promulgation on regulation of adjustment rate for land price in the Quang Nam Province.

- Decision No.43/2015/QD-UBND dated 22nd December 2015 of Quang Nam PPC,

adjustment and supplement some contents of Decision No.28/2014/QD-UBND dated 25th

December 2014 of Quang Nam PPC.

- Decision No.30/2016/QD-UBND dated 20th December 2016 of Quang Nam PPC

adjustment of Decision No.48/2014/QD-UBND dated 25th December 2014 of Quang Nam

PPC, and Decision No. 43/2015/QD-UBND dated 22nd December 2015 of Quang Nam

PPC, price and land pricing table from 2015-2019 in the province.

- Decision No.2352/QD-UBND dated 1st July 2016 of Quang Nam PPC, promulgation of

regulation for processes and procedures for specific land price identification in Quang Nam

province.

- Announcement on land acquisition No.173/TB-UBND dated 23th March 2017 of Tam Ky

City People’s Committee for construction of Dien Bien Phu Road (section from road of

flood prevention and natural relief to Coastal Square of Tam Ky city) under the SCDP –

Tam Ky subproject.

4. Asset Status for Appraisal

4.1 Assets for Appraisal

Replacement price: Land use right and trees, crops and cattle in Tam Thanh and Tam Phu

Commune, Tam Ky City, Quang Nam province are affected by SCDP in Quang Nam, Ha

Tinh and Dak Lak provinces – Tam Ky city Subproject ( Component: Dien Bien Phu Road

extension – Section: Km6+309,8 – Km8 + 106,22).

4.2 Asset Status for Appraisal

4.2.1 Replacement price of roads in Tam Thanh Commune and Tam Phu Commune

No. AFFECTED ROADS/ AREAS

I Tam Thanh Commune

1 The existing Thanh Nien Road, section from Mr. Tran Phuoc’s house ( Thanh

Tan Village) to area adjacent to Binh Nam

II Tam Phu Commune

1 The resident areas of remaining villages

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In the cases where there are gardens and ponds inside the house lot at some positions in

resident areas, they are not accepted as residential land.

4.2.2 Replacement price of Agricultural land

a) Agricultural land:

- Paddy land

- Remaining land for cultivation of annual crops

- Land for cultivation of perennial trees

- Land for aquaculture

b) Classification of agricultural land: The classification is implemented in accordance

with regulation at article 15, Circular No.36/2014/TT-BTNMT dated 30th June 2014

of Ministry of Natural Resources and Environment, of which:

- Location 1: refers to such lots as have the most favorable elements and conditions.

4.2.3 Replacement price for trees, crops and cattle

Comply with the list as attached with Decision No.39/2015/QD-UBND dated 21st

December 2015 of Quang Nam PPC on promulgation of unit price for trees, crops, plant

density, livestock’s; support levels for marine exploiting and aquaculture assets for

compensation, support, resettlement when the lands are acquired by the Government in

Quang Nam province.

5. Appraisal methods

Applicable methods are directive comparison method, pricing methods and collection

methods.

6. Results of appraisal

- The product of appraisal service is the land replacement price in Tam Thanh Commune and

Tam Phu Commune, Tam Ky city, Quang Nam province which are affected by Dien Bien

Phu Road project ( section from road of flood prevention and natural relief to Coastal

Square of Tam Ky city) under the SCDP – Tam Ky subproject. The appraisal is made by

Consultant Team of Danang Appraisal and Financial Service Joint Stock Company and the

proposed Replacement price is presented in detailed as follows:

6.1 Resident lands on the roads in Tam Thanh and Tam Phu Commune:

No. AFFECTED AREAS/ ROADS REPLACEMENT PRICE

( dong/m2)

I Tam Thanh Commune:

1 The existing Thanh Nien Road, section from Mr.

Tran Phuoc’s house ( Thanh Tan Village) to

adjacent to Binh Nam

998,000

II Tam Phu Commune

1 The resident areas of remaining villages 342,000

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6.2 Agricultural lands

No. AFFECTED AREAS/ ROADS REPLACEMENT PRICE

( dong/m2)

I Tam Thanh, Tam Phu Commune: Location 1

A Paddy land 55,000

B Remaining land for cultivation of annual crops 55,000

C Land for cultivation of perennial trees 58,000

D Land for aquaculture 58,000

- Replacement price for residential land of the existing Thanh Nien Road, section from Mr.

Tran Phuoc’s house ( Thanh Tan Village) to the area adjacent to Binh Nam in this certificate

of valuation applies for land lots with 25m width, and more than 25m width, land lots with

the front owned by other owners ( L, T shape lot), land lot with more than 2 facades in

accordance with regulations at Section 3 Article 5 Decision No.48/2014/QD-UBND dated

25/12/2014 of Quang Nam PPC, on promulgation of land price during 2015 -2019 in Quang

Nam province.

- For garden lands and ponds in the same land lot with the house but not recognized as

residential land, the replacement land price will comply with Section 1, Article 2, Decision

No,02/2016/QD-UBND dated 15 January 2016 of Quang Nam PPC.

- Appraisal results for residential land prices at these locations are calculated for

compensation at market prices, it’s not counted for re-purchased resettlement land with

priority prices.

- Appraisal results for agricultural land price have not mentioned supporting fees for

agricultural land and employment conversion and job hunting.

6.3 Trees, crops and cattle

The list of replacement unit prices for trees, crops and cattle is applied in accordance with

regulations of Decision No.39/2015/QD-UBND dated 21st December 2015 of Quang Nam

Provincial People’s Committee regarding the promulgation of unit prices for plants, crops,

plant density, cattle, supporting level for marine and aquaculture exploitation assets in order

to implement compensation, support, resettlement for land acquisition in Quang Nam

province.

Notes for appraisal results:

- Appraisal results are only used for stated purposes in Section 1 of Certificate of Valuation.

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- Land Fund Development Center - Tam Ky Branch and stakeholders are responsible for the

accuracy of information relating to appraisal of assets which were provided to Da nang

Appraisal and Financial Service JSC during the appraisal time.

- Appraisal JSC issues 01 original and 03 main copies: 02 main copies for customers, 02

copies as achieved at the company.

- Copies without Notary’s certification are invalid.

- Duration of Certificate of Valuation is from issuance date: 06 months.

Appraiser

( Signed)

Dang Thi An Thinh

Appraiser’s Card No. 06155 issued on 13th

Jan 2009

DIRECTOR

( Signed and sealed)

Duong Thi My Lang

Appraiser’s Card No.V09.218 issued on

2nd Mar 2010

DANANG APPRAISAL AND

FINANCIAL SERVICE JOINT

STOCK COMPANY

ORIGINAL COPY

Danang, 27th March 2017

Certificate of Valuation is issued 2 more copies for customer.

DEPUTY DIRECTOR

Dang Thi An Thinh