SFG2201-V1-IPP-P103238-Box396258B-PUBLIC-Disclosed-5-20-2016

Public Disclosure Authorized SFG2201 V1 ETHNIC MINORITIES DEVELOPMENT PLAN (EMDP) July 2014 TRUNG THU HYDROPOWER CONSTRUCTION PROJECT Muong Tra, Tua Chua district – Dien Bien province Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Ethnic Minorities Development Plan (EMDP) Prepared by: Trung Thu Hydro Power JSC ABBREVIATIONS AH Affected Household AP Affected Person CPC Commune Peoples’ Committee DMS Detailed Measurement Survey DPC District Peoples Committee DRC District Resettlement Committee EMPF Ethnic Minority Plan Framework EMDP Ethnic Minorities Development Plan GOV Government of Vietnam HH Household IOL Inventory of Losses LAR Land Acquisition and Resettlement LURC Land Use Rights Certificate MOF Ministry of Finance MOLISA Ministry of Labor, Invalids and Social Assistance NGO Non-Government Organization PPC Provincial People Committee RP Resettlement Plan TOR Term of Reference USD United States Dollar VND Vietnamese dong WB World Bank ii GLOSSARY Affected person Affected household / - Means any person, household, firm or private institution who, on account of changes resulting from the Project, or any of its phases or sub-projects, will have its (i) standard of living adversely affected; (ii) right, title or interest in any house, land (including residential, commercial, agricultural, forest, salt mining and/or grazing land), water resources or any other moveable or 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 displacement In the case of affected household, it includes all members residing under one roof and operating as a single economic unit, who are adversely affected by a project or any of its components Detailed Survey Measurement - With the aid of the approved detailed engineering design, this activity involves the finalization and/or validation of the results of the inventory of losses (IOL), severity of impacts, and list of APs earlier done during RP preparation The final cost of resettlement can be determined following completion of the DMS Compensation - Means payment in cash or in kind to replace losses of land, housing, income and other assets caused by the Project All compensation is based on the principle of replacement cost, which is the method of valuing assets to replace the loss at current market rates, plus any transaction costs such as administrative charges, taxes, registration and titling costs Ethnic minority - People with a group status having a social or cultural identity Distinct from that of the dominant or mainstream society Income restoration Income program - This is the re-establishment of sources of income and livelihood of the affected households restoration - A program designed with various activities that aim to support affected persons to recover their income / livelihood to pre-project levels The program is designed to address the specific needs of the affected persons based on the socio-economic survey and consultations Land acquisition - Refers to the process whereby an individual, household, firm or private institution is compelled by a public agency to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purposes in return for compensation at replacement costs Relocation - This is the physical relocation of an AP from her/his pre-project place of residence and/or business Severely households affected - This refers to affected households who will (i) lose 10% or more of their total productive land and/or assets, (ii) have to relocate; iii Stakeholders - Individuals, groups, or institutions that have an interest or stake in the outcome of a project The term also applies to those potentially affected by a project Stakeholders include land users, country, regional and local governments, implementing agencies, project executing agencies, groups contracted to conduct project activities at various stages of the project, and other groups in the civil society which may have an interest in the project Vulnerable groups - These are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) single-female headed households with dependents, (ii) disabled household heads, (iii) households falling under the generally accepted indicator for poverty, (iv) children and the elderly households who are landless and with no other means of support iv Table of contents SUMMARY vii I INTRODUCTION A B C Overview of the Renewable Energy Development Project Introduction of Trung Thu Hydropower Project Objectives of the EMDP II LEGAL FRAMEWORK OF THE EMDP A B C Legal documents and national policies on the ethnic minority community Policies and programs on ethnic minority community Policies of World Bank on ethnic minority community III SOCIO-ECONOMIC CHARATERISTICS OF ETHNIC MINORITY COMMUNITY IN THE PROJECT AREA 10 A B Overview of ethnic minorities in the project are 10 Socio-economics characteristics of ethnic minority groups affected by the project 15 IV INFORMATION DISCLOSURE AND COMMUNITY CONSULTATION 22 A B C Information disclosure 22 Community consultation and participation 22 Results of information disclosure and community consultation 23 V ASSESSMENT OF PROJECT IMPACTS TO ETHINIC MINORITIES 30 A B Positive impacts 30 Negative impacts 32 VI THE MITIGATION MEASURES AND DEVELOPMENT FOR ETHNIC MINORITIES 36 A B C The mitigation measures 36 Maintaining and Promoting Measures 39 The development measures for the ethnic minorities 40 VII INSTITUTIONAL ARRANGEMENT AND IMPLEMENTATION PLAN 45 A B Institutional Arrangement 45 Implementation Plan 45 VIII COMPLAINTS AND GRIEVANCE REDRESS MECHANISM 47 IX MONITORING AND EVALUATION 48 A B General requirements for monitoring and evaluation 48 Monitoring indicators 49 X BUDGET AND DISBURSEMENT PLAN 51 v List of tables Table I-1: Items and basic parameters of Trung Thu hydropower project Table II-1 Legal documents of the Vietnamese Government for ethnic minorities Table III-1 Information on EM in affected area 11 Table III-2: Ethnic Minority Affected Households in SES 15 Table III-3: Main income source of head of EM household 16 Table III-4: Average land-use types of ethnic minority households by each commune 16 Table III-5: Yields of annual crops by each affected commune 16 Table III-6: Forms of livestock and number of animals by each affected commune 17 Table III-7: General information on percentage of gender in affected communes 19 Table IV-1: Time, venue and number of participants in consultaion meetings by commune 22 Table IV-2 Summary of discussions and comments at the consultation meetings 23 Table IV-3: The concerns of the affected community and commitments of the work owner 26 Table V-1: Positive impacts of Trung Thu hydropower project 30 Table V-2: Negative impacts of Trung Thu hydropower project 32 Table VI-1: Measures to mitigate negative impacts 36 Table VI-2: Maintaining and Promoting Measures 39 Table VI-3: The development measures for the ethnic minorities 41 Tabe VII-1: Implementation Progress of EMDP 46 Table IX-1: Monitoring indicators in EMDP 49 Table X-1: Total funds for implementation of EMDP 51 Annexes ANNEX LIST OF AHs – TRUNG THU HYDROPOWER PROJECT 54 ANNEX LIST OF HOUSEHOLDS ATTENDED THE MEETINGS 62 ANNEX CONSULTATION MEETING MINUTES 68 ANNEX SOME PHOTOS OF CONSULTATION 84 vi SUMMARY Introduction The general objective of the Renewable Energy Development Project is to support the development of renewable energy sources producing electricity with lowest costs in sharing with the national total electricity generation under commercial sustainability and ensuring social and environmental sustainability Trung Thu Hydro Power Project has been proposed to research with aims of taking full advantage of natural run-off of Nam Nuc river to generate electricity sharing with regional and national power network at highest electric-power capacity (30MW) Trung Thu hydropower Project is located at the headwork, close to Nam Muc estuary flowing into Da river in Pa Ham commune, Muong Cha district and Trung Thu commune of Tua Chua district, Dien Bien province The construction items of Trung Thu Hydro Power Project consist of a Nam Muc reservoir with an area of 290.2ha and a capacity of 30.7 cubic meters; The construction complex consists of a gravity dam with a dimension of 252m x 45m and a spillway dam with height of 45m; Shore energy system includes water intake, a pressure tunnel with 25m in length, a open-typed hydropower plant behind the dam with a capacity of 30MW The open-typed distribution station with an area of 16x25m plans to be built on the upstream position of the plant with a height of 243m The reasonable choice of the position will make advantages for not only construction but operation management According to the WB’s safeguard policies on Ethnic minority, the Borrower must execute the safeguard measures for the ethnic minority as the project has certain impacts on the ethnic minority Based on such a basic, this EMDP prepared for the Trung Thu Hydropower Project aims to ensure that negative and positive impacts have been considered, and relevant measures have also been proposed to eliminate risks or highly mitigate the impacts of the project on the lives and culture of the ethnic minority at affected areas Legal Framework for the EMDP Vietnam’s Constitutions in 1946, 1959, 1980 and 1992, along with other legal documents (updated until 2014) related to works and the development strategies for the ethnic minority as well as the ethnic development policies of the World Bank (WB) – OP4.10 are the important legal foundations in the preparation of the EMDP for the Trung Thu Hydropower Project; the ethnic minority-related policies of the local and government as well a WB have been applied in combination with the EMDP to ensure that the ethnic minority community living around the Trung Thu Hydropower Project is consulted and provided with a full of information, and participated in the implementing stages of the Project, benefits from the Project, and the negative impacts of the Project on culture, economics and society are highly mitigated Socio-economic characteristics of ethnic minority community in the project area There are 21 ethnic minority groups living around the project site; however, a large number of these groups are H’Mong group (45.2%) and Thai group (46.37%), the remaining groups account for a very lowest rate Agricultural production is main source of income of the ethnic minority community in the project area, as results of the household survey with 157 interviewees show that 153 households (97.4%) have their incomes from agricultural production However, agricultural production has still been in vii manner of autarky and no market orientation, thus many households are poor according to the living standards of the poor as regulated by GOV In terms of infrastructure and social services, through the GOV’s policy programs of hunger eradication and poverty reduction, such as program 134, 135, 30A, etc there are many funds investing in agricultural production and infrastructure for the households of the ethnic minorities, thus in recent year the infrastructure has been improved clearly, the households in the project site have chance to use electricity and radio station, etc Information dissemination and community consultation Many consultant meetings and group discussions were held in June 2014 with the participation of stakeholders, especially local authorities and vulnerable households, to provide households with the full information on the project and activities from initial stage to operation stage of the project, and to get households’ feedback and comments proposing measures within the development plan The consultant meetings were organized in communes of districts which are affected by the project, with a total of 77 participants including local officers, the leader of hamlets, and ethnic minority affected households In the next stage of the project, the dissemination and consultant meetings with local authorities and households will be held frequently at each important stage or necessary time of the project Assessment of impacts of the project 10 Potential impacts of the project include positive and negative impacts discussed carefully at the consultant meetings and group discussions among the project implementing partners and relevant agencies as well as households affected Basically, there were not seriously negative impacts of the project on local households’ lives and belief culture as well as manners and customs Mitigation and development measures for the ethnic minority 11 There are some unavoidable impacts out of expectation, resulting from recover some production areas of households and relevant activities during the implementing period of the Trung Thu Hydropower Project Consequently, all of the negative and positive impacts have been studied and discussed, even at smallest impacts Accordingly mitigation measures or advanced measures have been proposed to improve or help the ethnic minority to recover soon and stabilize the production of households like initial time prior to the project implementation at least Institutional arrangement and implementation plan 12 The implementation of the ethnic minority development plan needs to have a coordination of organizations and agencies from provincial level to local level and the ethnic minority community at local The Client of the Trung Thu Hydropower Project will be a lead organization and coordination with other implementation organizations Trung Thu Hydropower JSC has responsibilities to provide funds for implementing all activities/tasks proposed in the EMDP and to report to stakeholders Complaints and Grievance redress mechanism 13 Complaints and Grievance redress mechanism in this EMDP have been made based on Vietnam’s laws on complaints and denunciations, consulted with local authorities, the ethnic minority community and also involving in particular cultural characteristics and traditional culture mechanisms of the ethnic minority community in the project area viii Monitoring and evaluation 14 Proposed measures and implementing timeframe of the EMDP for the Trung Thu Hydropower Project will be monitored closely to (i) ensure the implementing progress of the plan; (ii) undertake rightly the mitigation measures of the plan; (iii) assess effectiveness of the measures and propose supplement measures if necessary; (iv) identify potential or generated problems to the ethnic minority community during the implementing period of the project; and (v) identify quick response measures to mitigate these issues 15 Independent and internal monitoring system, monthly and quarterly monitoring reports will be submitted to the Project Management Board and World Bank (WB) Independent monitoring agency will be recruited to implement the independent monitoring, and the independent assessment will be made annually, except for the beginning period of the project with monitoring requirement of twice per year Budget and disbursement plan 16 Total budget of implementing development measures within the EMDP is 165.275.000 VND (approximately US$7.870,2) including the contingency cost of 10% Implementation costs will be paid by the Trung Thu Hydropower JSC be responsible to fund for implementing all activities of the EMDP required ix I INTRODUCTION A Overview of the Renewable Energy Development Project 17 The goal of the Renewable Energy Development Project is to support the development of the electricity–generated renewable energy sources with lowest costs to share with the national electricity network based on the commercial sustainability, and ensuring the social and environmental sustainability The project has components: (i) Component of investment project implementation; (ii) Component of institutional establishment; and (iii) Component of information channel development 18 Component of investment project implementation consist of (i) Allow commercial banks to reborrow funds to provide valid loans for the renewable energy projects with a maximum capacity of 30MW invested by private investors, and (ii) Technical support to enhance the capacity of the participating banks and investors of sub-projects in the preparation, appraisal, financing and the implementation of the renewable energy projects in comply with international practice This component will be coordinated by the Renewable Energy and Rural Electricity Project Management Board (PMB) of Ministry of Industry and Trade This component consists of two sub-components as follows: • • • • • Provide credits to support investment in renewable energy: Provide credits to support investment in renewable energy: Private investors will establish sub-projects in small hydropower sectors, wind power and biomass with a maximum capacity of 30MW in accordance with the criterions of the renewable energy development project including environmental and social safety standards Investors commit to contribute equity with at least 20% of the total investment capital and will make a maximum loan from the participating banks with 80% of the total investment capital of the subproject The participating banks are selected based on competition and will be responsible to appraisal the valid renewable energy sub-projects under the proposal of investors, and provide loans for the projects meeting fully requirements of the banks The participating banks will allow the subprojects to make a loan in accordance with the commercial clauses identified by the market, and be fully responsible to credit risks of the loans Valid loans will be refinanced 80% of loan value for the participating banks or 64% of the total investment value of the sub-projects, meaning that the participating banks will commit to make a loan of at least 16% of the total investment value in each sub-project’s budget and investors will contribute equity of 20% total investment capital After the letters requesting re-borrow were approved, the participating banks will achieve re-loan from the renewable energy development project (World Bank – WB) ratified by Ministry of Finance (MOF) Re-loan from the renewable energy development project will be sponsored from WB’s capital through the loan of MOF in accordance with the clauses of WB It is anticipated that about 20-25 subprojects will be sponsored through the re-loan mechanism When operating, the total design capacity of these projects will be at 210MW and generate the annual electricity capacity of 880GWh Technical Assistance to implement the investment project: The technical assistance of Component will support the general management of the renewable energy development project, check validity of the loans and enhance capacity for the participating bank, investors and other stakeholders The Project Management Board will manage the technical support The technical support will focus on providing investors with necessary skill guidelines to identify the