Land Acquisition and Compensation Plan

October 2018

Lao PDR: Second Greater Mekong Sub-Region Corridor Towns Development Project

LNT A3 – Luang Namtha Urban Recreation

Facilities Subproject

Prepared by the Department of Housing and Urban, Ministry of Public Works and Transport, Lao PDR for the Asian Development Bank

CURRENCY EQUIVALENTS (as of October 2018)

Currency Unit - Lao Kip (Kip)

- US Dollar ($) K 8,500 = $1.00

ABBREVIATIONS

ADB - Asian Development Bank AP/AH - affected person/affected household CAF - compensation agreement form COI - corridor of impact CPSC - Central Project Steering Committee DMS - detailed measurement survey DES - Department of Education and Sport DHUP - Department of Housing and Urban Planning (MPWT) DCIT - Department of Culture, Information, and Tourism DPWT - Department of Public Works and Transport DRC - District Resettlement Committee EA - executing agency EM - external monitor GMS - Greater Mekong Sub-region GMS2 - Second Greater Mekong Sub-region Corridor Towns Development Project GoL - Government of Lao PDR GRC - Grievance Redress Committee GRM - grievance redress mechanism IA - implementing agency Lao PDR - Lao People’s Democratic Republic MPWT - Ministry of Public Works and Transport PCU - Project Coordination Unit PIB - project information booklet PIC - Project Implementation Consultants PICTO - Provincial Information, Culture and Tourism Office PPSC - Provincial Project Steering Committee PRC - Provincial Resettlement Committee RCS - replacement cost study ROW - right-of-way SES - socioeconomic survey SPS - Safeguard Policy Statement

WEIGHTS AND MEASURES

ha - hectare m - meter m2 - square meter

NOTE

In this report, "$" refers to US dollars.

This land acquisition and compensation 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. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Lao People’s Democratic Republic Peace Independence Democracy Unity Prosperity

Ministry of Public Works and Transport Department of Housing and Urban

Department of Public Works and Transport, Luangnamtha Province

Land Acquisition and Compensation Plan:

LNT A3 – Urban Recreation Facility and Night Market

Subproject

Prepared by

Project Coordination Unit

October 2018

Second Greater Mekong Sub-Region Corridor Towns Development Project

ADB Loan Nos. 3315/8296-LAO

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CURRENCY EQUIVALENTS (as of October 2018)

Currency Unit - Lao Kip (Kip)

- US Dollar ($) K 8,500 = $1.00

ABBREVIATIONS

ADB - Asian Development Bank AP/AH - affected person/affected household CAF - compensation agreement form COI - corridor of impact CPSC - Central Project Steering Committee DMS - detailed measurement survey DES - Department of Education and Sport DHUP - Department of Housing and Urban Planning (MPWT) DCIT - Department of Culture, Information, and Tourism DPWT - Department of Public Works and Transport DRC - District Resettlement Committee EA - executing agency EM - external monitor GMS - Greater Mekong Sub-region GMS2 - Second Greater Mekong Sub-region Corridor Towns Development Project GoL - Government of Lao PDR GRC - Grievance Redress Committee GRM - grievance redress mechanism IA - implementing agency Lao PDR - Lao People’s Democratic Republic MPWT - Ministry of Public Works and Transport PCU - Project Coordination Unit PIB - project information booklet PIC - Project Implementation Consultants PICTO - Provincial Information, Culture and Tourism Office PPSC - Provincial Project Steering Committee PRC - Provincial Resettlement Committee RCS - replacement cost study ROW - right-of-way SES - socioeconomic survey SPS - Safeguard Policy Statement

WEIGHTS AND MEASURES

ha - hectare m - meter m2 - square meter

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DEFINITION OF TERMS

Affected person (AP) /

Affected Household (AH)

- 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 (including residential, commercial, agricultural, forest 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 (AH), it includes all members residing under one roof and operating as a single economic unit, who are adversely affected by the project or any of its components.

Corridor of impact

- Refers to the area required for permanent works plus a minimum additional width for operation of construction equipment to build the required permanent works.

Compensation - It is payment in cash or in-kind at replacement cost for an asset acquired by the Project.

Cut-off date

- This refers to the date prior to which the occupation or use of the project area (i.e., right-of-way or ROW) makes residents/users of the project area eligible to be categorized as AHs. The cut-off date for subprojects in Luangnamtha is 25 November 2017 as declared in the 23 November 2017 decision of the Luangnamtha Provincial Governor and disseminated broadly through town and village authorities. The executive decision of the Luangnamtha Governor identified the subprojects in Luangnamtha and their respective ROWs, advising all concerned not to construct or use any portion thereof, especially government land. Persons who occupy government land inside the ROW subsequent to the cut-off-date are not eligible to compensation and other entitlements. The Provincial Resettlement Committee (PRC) reiterated the cut-off-date in public meetings and discussions with affected households (AHs) during and subsequent to the conduct of the detailed measurement survey (DMS).

Detailed Measurement Survey (DMS)

- With the aid of approved detailed engineering drawings, this activity involves updating the results of the IOL, severity of impacts, and list of APs that was done earlier during the preparation of the feasibility study resettlement (RP). The final cost of resettlement is determined following completion of the DMS. The DMS was conducted in June 2018 for 1 affected person (AP).

Entitlement - This refers to a range of measures comprising compensation, income restoration support, transfer assistance, income substitution, relocation support, etc. that are provided to the APs/AHs, depending on the type and severity of their losses, to restore their economic and social base.

Land acquisition

- Refers to the process whereby an AP/AH is compelled by the government through the project’s executing agency to alienate all or part of the land it owns or possesses to the ownership and possession of that agency for public purpose in return for compensation at replacement cost.

Rehabilitation and income restoration

- This refers to additional cash or in-kind support provided to APs/AHs losing productive assets, incomes, employment or sources of living, to supplement compensation for assets acquired by the project, in order to achieve full restoration of living standards and quality of life.

Relocation

- This is the physical transfer of an AP/AH from his/her pre-project place of residence and/or business.

Replacement cost

- This refers to the amount in cash or in-kind, including transactions costs and taxes, needed to replace an asset and is the value determined as compensation for:

i） Agricultural land and fishponds based on market prices that reflect recent land sales prior to the commencement of the Project or displacement, and in the absence of such recent sales, based on productive value;

ii） Residential land based on market prices that reflect recent land sales prior to

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the commencement of the Project or displacement, and in the absence of such recent land sales, based on similar location attributes;

iii） Houses and other related structures based on current market prices of materials and labor without depreciation nor deductions for salvaged building materials;

iv） Annual crops equivalent to the highest production of crop over last three years multiplied by the current market value of crops;

v） Perennial crops and trees based on current market value per the type, age, diameter at breast height and productive capacity; and

vi） Other assets (i.e., cultural, aesthetic) based on current market value for repairing and/or replacing assets or the cost of mitigating measures.

Replacement Cost Study

- This involves the conduct of empirical research to determine the amount of compensation needed for an AP/AH to be able to buy a replacement of an asset lost to the project and/or to recoup lost income.

Resettlement - This refers to all measures taken by Project authorities to mitigate any and all adverse social impacts on the AHs, including compensation for lost assets and incomes, and the provision of income restoration relocation assistance as needed.

Resettlement Plan

- This is a time-bound action plan with budget setting out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation.

Severely affected households

-

This refers to APs/AHs that will (i) lose 10% or more of their aggregate productive landholdings, (ii) have to relocate; and/or (iii) lose 10% or more of their total income sources due to the project.

Significant Project Impact

- This means that the subproject has 200 or more severely affected persons (i.e. at an average household size of 5.1 in Luangnamtha Province, this is equivalent to 39 severely affected households or SAHs).

Vulnerable groups

- These are distinct groups of people who might suffer disproportionately or face the risk of further marginalization due to displacement from assets and sources of incomes and they specifically include: (i) female headed households with dependents, (ii) disabled and/or elderly household heads, (iii) households falling under the generally accepted indicator for poverty, (v) landless households, (vi) indigenous people or ethnic minorities.

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TABLE OF CONTENT

DEFINITION OF TERMS III LIST OF TABLES VI LIST OF FIGURES VI EXECUTIVE SUMMARY VII I. INTRODUCTION 1

A. Background 1

B. Civil Works to be Carried Out 1

C. Measures to Minimize Adverse Social Impacts 1

D. Focus of the LACP 2

II. PROJECT IMPACTS 7

A. Prologue 7

B. Affected Landholdings 7

C. Affected Primary Structures 7

D. Affected Other Structures 8

E. Affected Fruit and Timber Trees 8

F. Temporary Impacts 8

G. Affected Population 8

H. Unforeseen Impacts 9

I. Summary of Impacts 9

III. SOCIOECONOMIC PROFILE OF AHs 10

A. Basic Information on the AH Heads 10

B. Household Size 11

C. Primary Occupation of AH Heads 11

D. Income 11

E. Sanitation 12

F. Household Amenities 12

IV. PROJECT RESETTLEMENT POLICY AND ENTITLEMENTS 14

A. Project Principles 14

B. Project Entitlements 15

C. Cut-off Date for Eligibility to Project Entitlements 18

D. Unit Costs of Affected Assets 18

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 19

A. Vendors 19

B. Recreation Park 20

C. During RP Implementation 20

VI. GRIEVANCE REDRESS 21

VII. INSTITUTIONAL ARRANGEMENTS 23

A. Executing Agency and Implementing Agency 23

B. Provincial Resettlement Committee 23

C. Indicative Schedule of LACP Preparation and Implementation 23

VIII. RESETTLEMENT COSTS 24

A. Compensation for Land 24

B. Compensation for Primary Structures 24

C. Compensation for Other Structures 24

D. Affected Trees 24

E. Cash Assistance to Eligible AHs 24

F. Budget for Temporary Stalls of Night Market Vendors 25

G. Source of Funds for Resettlement 25

H. Flow of Funds for Compensation and Cash Assistance 25

I. Implementation, Administration and Contingency Costs 25

J. Estimated Cost of Resettlement 25

IX. MONITORING AND EVALUATION 27

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A. Internal Monitoring 27

B. External Monitoring 27

APPENDIX 1 DMS QUESTIONNAIRE 28

APPENDIX 2 MASTER LIST OF AFFECTED HOUSEHOLDS 34

APPENDIX 3 SOCIOECONOMIC SURVEY QUESTIONNAIRE 35

APPENDIX 4 LUANGNAMTHA GOVERNOR’S DECISION ON UNIT RATES 41

APPENDIX 5 REGISTRATION OF PARTICIPANTS, 28 JUNE 2018 57

APPENDIX 6 MINUTES OF MEETING STAKEHOLDERS, 26 JULY 2018 63

APPENDIX 7 REGISTRATION OF PARTICIPANTS, 17 OCTOBER 2018 65

APPENDIX 8 MEETING WITH AMBULANT VENDORS 67

APPENDIX 9 PARTICIPANTS REGISTRATION, 18 OCTOBER 2018 68

APPENDIX 10 BUDGET PROPOSAL FOR THE TEMPORARY STALLS 69

APPENDIX 11 PRESENT LOCATION OF NOODLE SHOP OF ONE AP 72

LIST OF TABLES

Table II-3 Summary of Impacts ............................................................................................. 9

Table III-1 Residence of the AHs ........................................................................................ 10

Table III-2 Ethnic Affiliation of the AH Heads ....................................................................... 10

Table III-3 Religion of the AH Heads ................................................................................... 10

Table III-4 Primary Occupation of the AH Heads ................................................................. 11

Table III-5 Monthly Per Capita Income of the AHs ............................................................... 11

Table III-6 Source of Water ................................................................................................. 12

Table III-7 Toilet Facilities ................................................................................................... 12

Table III-8 Power Used for Lighting and Cooking ................................................................ 12

Table III-9 Ownership of Appliances .................................................................................... 12

Table III-10 Ownership of Appliances and Transportation ................................................... 13

Table IV-1 Project Principles ............................................................................................... 14

Table IV-2 Entitlement Matrix .............................................................................................. 15

Table VI-1 Grievance Redress Process .............................................................................. 21

Table VII-1 Schedule of LACP Preparation and Implementation ......................................... 23

Table VIII-1 Cash Assistance for Vulnerable AHs ............................................................... 24

Table VIII-2 Budget for Temporary Stalls ............................................................................ 25

Table VIII-3 Summary of Resettlement Costs ..................................................................... 26

LIST OF FIGURES

Figure I-1 Location of Subproject .......................................................................................... 3

Figure I-2 Layout of the Recreation Park and Sports Building ............................................... 4

Figure I-3 Close-up Image of the Location of the Night Market .............................................. 5

Figure I-4 Renovated Night Market ....................................................................................... 6

Figure II-1 Affected Primary Structure ................................................................................... 8

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EXECUTIVE SUMMARY

A. Background

1. The Government of Lao People’s Democratic Republic (Lao PDR), with assistance from the Asian Development Bank (ADB), is implementing the Second Greater Mekong Sub-region Corridor Towns Development Project (referred hereinafter as GMS2) under ADB Loan 3315-Lao and Loan 8296-Lao. The 2 towns in this project, Huayxai of Bokeo Province and Luangnamtha of Luangnamtha Province, are part of the North-South Economic Corridor (NSEC), which links Lao PDR with People's Republic of China (PRC), Thailand and Myanmar. The 2 towns were chosen due to their economic potential, infrastructure constraints, and commitments to the project. The Ministry of Public Works and Transport (MPWT), along with its Department of Housing and Urban Planning (DHUP), is the executing agency (EA). At the provincial level, the province’s Department of Public Works and Transport (DPWT), assisted by the Project Implementation Unit (PIU) for Luangnamtha subprojects, is the implementing agency (IA).

2. This land acquisition and compensation plan (LACP) is for LNT A3 Urban Recreation and Sports Facility and Night Market Subproject located in Luangnamtha Town. The subproject involves the rehabilitation of an existing 4.5 ha recreation park in Ban Xaisomboun that includes a sports building, and the upgrading of an existing 926 m2 night market building located on the market’s existing perimeters of 2,080 m2 in Ban Phonxai.

B. Scope of Land Acquisition and Resettlement Impacts

3. No land acquisition will occur in the upgrading of both facilities. However, 1 person will be affected by the demolition of an empty 135 m2 former noodle shop inside the recreation park.1 A detailed measurement survey (DMS) of this affected asset was done on 19 June 2018. A socioeconomic survey (SES) on the AP’s household was carried out in September 2018.

4. Thirty-four regular vendors at the night market will move to an adjoining road where they will continue their nightly business activities while the night market is being renovated. Also, 5 residents on the road where the night market vendors will relocate temporarily will be inconvenienced by the constriction of the roadway, although they will not lose any asset. In addition, 4 ambulant vendors selling souvenir items to tourists roam around Luangnamtha Town, including the night market, on a regular basis.

C. Measures to Minimize Impacts and Resettlement

4. Arrangements to mitigate the temporary displacement of the vendors have been planned. The Provincial Information, Culture and Tourism Office (PICTO), administrator of the night market, will construct temporary stalls on one side of a road at the back of the night market to allow vendors to continue their nightly business while the market is being renovated. Unhampered access to and from government offices that border the side of the road where the temporary stalls will be constructed will be maintained during the day. Similarly, access to and from the 5 houses on the other side of the road will remain open any time of the day. The project will restore to pre-project condition the side of the road where

1 The contract of the affected person (AP) with the Department of Education and Sport (DES), administrator of the recreation park, to operate a noodle shop in the park ended prior to the start in November 2017 of consultations with stakeholders in Lauangnamtha on GMS2. Notwithstanding, DES did not evict the concessionaire, and it took him until May 2018 to find a plot to rent and build a new noodle shop. To date, the AP’s former noodle shop in the recreation park is intact; to be demolished only after he is paid compensation for the empty structure.

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the temporary stalls have been constructed after completion of the renovation of the night market.

D. Legal and Policy Framework

5. The project resettlement policy is articulated in the agreed June 2015 resettlement plan (RP). The resettlement policy has been developed from the laws of the Government of Lao PDR, principally the Constitution (1991), the Land Laws (1997 and 2003), the Road Law (1999), Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Project, No.192/PM (7 July 2005), as amended by Decree No. 84 (5 April 2016); Regulations for Implementing Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Project, No.2432/STEA (11 November 2005); Decree on Environmental Assessment (February 2010); updated Technical Guidelines for Implementing Decree 192/PM (March 2010); and ADB’s 2009 Safeguard Policy Statement (SPS). Provisions and principles adopted in the project resettlement policy will supplement the provisions of relevant decrees currently in force in Lao PDR. Wherever a gap exists, the higher standard will apply.

E. Participation, Disclosure and Grievance Redress

6. Public consultations with stakeholders of GMS2 in Luangnamtha started on 25 November 2017. Specific to the night market vendors, the first public consultation with them was held on 28 June 2018 at PICTO. Main agenda of that meeting revolved around the renovation plan for the night market and its operation and management. Also discussed was the project’s resettlement policy. On 26 July 2018 a second consultation at PICTO was held with vendors and the 5 residents living on the road at the back of the night market where temporary stalls will be constructed. Another meeting with residents of the road where stalls of the night market vendors will be constructed temporarily was held on 17 October 2018 at PICTO. During that meeting, the 5 residents raised the following concerns: (i) increased volume of trash at their place, (ii) increased noise, and (iii) disturbance because the night market operates from 5 to 11 PM daily. Measures to mitigate said concerns were discussed, and the residents did not raise any other concerns.

7. A group consultation with ambulant vendors was carried out on 15 October 2018 at the night market. The ambulant vendors are the least affected by the temporary closure of the night market because they roam around town freely to sell their wares. Likewise, on 18 October 2018 at the Department of Pubic Works and Transport (DPWT) office, the PIU held a consultation-meeting with residents living near the recreation park where plans for the renovation of the park and sports building were discussed.

8. To coincide with the endorsement by MPWT of the LACP to ADB, (i) the executive summary of the draft LACP, including a list of AHs, will be posted at village offices; and (ii) the draft LACP will be posted in relevant offices of Luangnamtha Province and Luangnamtha Town, and on the ADB website. Following concurrence by ADB of the LACP, a summary of the agreed LACP will again be posted at village offices, while the full text of the agreed LACP will be uploaded on the ADB website. Social monitoring reports will be available at project village offices and will be submitted to ADB for web posting.

9. Grievances or concerns of AHs and other stakeholders in Luangnamtha will pass through 4 levels with the aim of resolving them amicably and expeditiously. The process starts from the village level, followed by the district level, then the provincial level, and finally the central (Ministry) level. The grievance redress process does not bar any aggrieved party from filing its complaint directly with the court for adjudication. An aggrieved AH or stakeholder may also bring its complaint directly to ADB.

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F. Vulnerability and Gender Issues

10. The SES found 22 AH heads that fall in one or more categories of vulnerability as defined in the agreed June 2015 project RP. Among them were 9 female AH heads, 1 of who was 65 years of age, poor, and belonged to the Khmmu ethnic minority group. All 4 ambulant vendors were women and of the Akha ethnic minority group. The 14 other AH heads were males, 5 of whom were elderly. One of the elderly male AH heads belonged to the Hmong ethnic minority group, while another belonged to the Khmmu ethnic minority group. Two of the male AH heads were poor. Each of these AH heads are entitled to receive a one-time cash assistance, regardless of the number of categories of vulnerability that an AH falls, in the amount of LAK 1,500,000.

G. Implementation Arrangements

10. MPWT is the project-executing agency (EA), assisted by the Project Coordinating Unit (PCU) that is based at the Department of Housing and Urban Planning. With guidance from the Provincial Project Steering Committee (PPSC), the province’s Department of Public Works and Transport is the implementing agency (IA), assisted by the Project Implementation Unit (PIU) of Luangnamtha. The Provincial Resettlement Committee (PRC), with support from the 2 subproject villages, will assist the IA in holding consultations with AHs, confirming the results of the DMS, establishing compensation rates, undertaking final agreement on compensation with the AHs, managing compensation funds for disbursement to the AHs, monitoring the implementation of the LACP, and acting as grievance officers.

H. Monitoring

11. The PCU, with support from the PIU, will carry out internal monitoring of the implementation of the LACP starting from the time of submission of the draft LACP to ADB for concurrence. Quarterly internal monitoring reports will be submitted to MPWT and ADB. Internal monitoring reports will be disclosed publicly.

I. Resettlement Cost and Indicative Schedule of LACP Implementation

12. The direct cost (i.e., compensation and cash allowances of AHs), inclusive of 10% contingency is calculated at LAK 333,940,293.5 (US$ 39,287). Administrative costs involved in the preparation of the LACP, preparation of compensation documents, and disbursement of compensation, not to mention the cost of internal monitoring, are included in other budget items of GMS2. The Provincial Government of Luangnamtha will ensure the timely provision of funds for compensation and allowances. The PCU will only issue the notice to commence civil works in the subproject following clearance by ADB of the LACP and when: (i) AHs have been paid their compensation and allowances in full, and (iii) the area required for civil works is free of all obstructions.

Schedule of LACP Preparation and Implementation

Activities Schedule Detailed measurement survey November-December 2017 Market study and decision on project unit rates March 2018 Public consultation with AHs and other stakeholders November 2017 – October 2018 Submission by PCU of the draft LACP to ADB October 2018 Posting of the draft LACP in relevant government offices and on the ADB website

October 2018

ADB concurrence to the LACP November 2018 Payment of compensation and allowances November 2018 Clearing of the ROW November 2018 Start of civil works December 2018 Start of internal monitoring (with quarterly progress reports) October 2019

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I. INTRODUCTION

A. Background

1. The Government of Lao People’s Democratic Republic (Lao PDR), with assistance from the Asian Development Bank (ADB), is implementing the Second Greater Mekong Sub-region Corridor Towns Development Project (referred hereinafter as GMS2) under ADB Loan 3315-Lao and Loan 8296-Lao. The 2 towns in this project, Huayxai of Bokeo Province and Luangnamtha of Luangnamtha Province, are part of the North-South Economic Corridor (NSEC), which links Lao PDR with People's Republic of China (PRC), Thailand and Myanmar. The 2 towns were chosen due to their economic potential, infrastructure constraints, and commitments to the project. The Ministry of Public Works and Transport (MPWT), along with its Department of Housing and Urban Planning (DHUP), is the executing agency (EA). At the provincial level, the Department of Public Works and Transport (DPWT), assisted by the Project Implementation Unit (PIU) for Luangnamtha subprojects, is the implementing agency (IA).

2. This land acquisition and compensation plan (LACP) is for LNT A3 Urban Recreation and Sports Facility and Night Market Subproject located in Luangnamtha Town. (See Figure I-1 for a satellite image of the subproject’s components).

B. Civil Works to be Carried Out

3. The subproject will rehabilitate an existing 4.5 ha recreation park that includes a sports building in Ban Xaisomboun. (See Figure I-2 for the layout of the recreation park and sports building). In addition, the subproject will upgrade an existing night market on a 2,080 m2 government land in Ban Phonxai. Other than renovating ancillary facilities, such as toilets and parking area, the subproject will upgrade a 926 m2 covered pavilion in the night market (see Figure I-3 and Figure 1-4).

C. Measures to Minimize Adverse Social Impacts

4. Arrangements to mitigate the temporary displacement of vendors have been planned. The Provincial Information, Culture and Tourism Office (PICTO), administrator of the night market, will construct temporary stalls on one side of a road at the back of the night market to allow vendors to continue their nightly business uninterrupted while the market is being renovated. Unhampered access to and from government offices that border the side of the road where the temporary stalls will be constructed are to be maintained during the day. Similarly, access to and from the 5 houses on the other side of the road will remain open any time of the day. The project will restore to pre-project condition the side of the road where the temporary stalls have been constructed after completion of the renovation of the night market. The Project Implementation Unit (PIU) will ensure that these mitigation measures are observed diligently.

5. The civil works contractor may require the temporary use of landholdings outside of the perimeters (right-of-way or ROW) of the subproject’s components transporting materials and as work area. To ensure that temporary impacts during construction will be avoided, if not minimized, the contract for civil works will include the following provisions: (i) contractor to pay rent for any land required for construction work outside of the subproject ROW; (b) to the extent possible, only idle land will be used as construction work area to avoid disruption to households and business establishments; and (c) temporary use of land will be restored or improved to its pre-project condition. The Project Implementation Unit (PMU) will review any written agreement with the AHs, payment records, and disbursement of payments to ensure proper monitoring and compliance with the project resettlement policy.

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D. Focus of the LACP

6. This LACP for LNT A3 Urban Recreation Facility and Night Market Subproject should be read in conjunction with the June 2015 Luangnamtha Subproject resettlement plan (RP) agreed by the ADB the MPWT. This LACP will not discuss at length applicable portions of the former, such as discussion of relevant laws, principles of public participation, grievance resolution, etc. Instead, this LACP will focus on the results of the detailed measurement survey (DMS), a brief socioeconomic profile of the affected households (AHs), the entitlements due to these AHs, public consultations held, and the amount needed to pay AHs their compensation and allowances.

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Figure I-1 Location of Subproject

Source: Google Earth, accessed on 27 October 2018

Night Market

Recreation Park

Sports Building

Main Luangnamtha Road

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Figure I-2 Layout of the Recreation Park and Sports Building

Legend

1 Recreation park marker

2 Parking lot for bicycle and motor

bikes

3 Parking for cars

4 Flower garden

5 Fountain

6 Multi-purpose area

7 Relaxation garden

8 Seat, pavilion

9 Exercise area

10 Pond

11Playground

12 Restaurant

13 Landmark

14 Seat area

15 Sport hall

16 Fence

17 Gate

18 Stage

19 Toilet

20 Bridge

Source: Project Implementation Consultants

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Figure I-3 Close-up Image of the Location of the Night Market

Source: Google Earth, accessed on 27 October 2018

Night Market

Road where temporary market stalls will be constructed

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Figure I-4 Renovated Night Market

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II. PROJECT IMPACTS

A. Prologue

7. There are 5 subprojects in Luangnamtha, including LNT A3 Urban Recreation and Sports Facility and Night Market. Prior to the DMS at various subprojects, the Provincial Resettlement Committee (PRC), composed of representatives from the Department of Public Works and Transport (DPWT), the Project Coordination Unit (PCU), and Village Resettlement Committees (VRC) on 22 November 2017 held a workshop on the project’s resettlement policy and procedures, including the DMS, payment of compensation at replacement cost, public consultation and participation, and the grievance redress process. The workshop was followed by village level public consultations starting on 25 November 2017 where the following concerns were discussed: (i) the policy on cut-off-date for eligibility to project entitlements; (ii) land acquisition and compensation process; (iii) role of the DMS and compensation team, the resettlement and compensation committee, and the grievance redress committee; (iv) the need for public consultation and participation; (v) the grievance redress mechanism; and (vi) schedule and process of the DMS and socioeconomic survey (SES), including filling-up of the asset registration form. (See Appendix 1 for the DMS questionnaire used).

8. The PRC met again on 18 December 2017 to discuss the results of the DMS, including the highlights of village level public consultations held earlier.2 During the meeting, the PRC formed a task force to study and come up with the unit rates for computing compensation for project affected assets based on (i) rates used in other project, (ii) government legislated rates, and (iii) market prices.3

9. The survey group hired by PCU was made up of 3 individuals, one of who was responsible for taking notes and filling in the DMS questionnaire. The other 2 members completed the tagging, photographing and measurement of affected assets. Each completed DMS questionnaire was signed or thumb-printed by a representative of the PRC, the survey group, and a representative of the AH. A duplicate of the DMS questionnaire was left with the AH. At the conclusion of the DMS, the survey group encoded the DMS questionnaires onto an asset registration form.

10. Specific to the LNT A3 Urban Recreation and Sports Facility and Night Market Subproject, the PRC conducted the DMS for the affected asset of 1 person at the recreation park on 19 June 2018. To date, the PRC has yet to meet with the AP at the recreation park to discuss with him entitlements.

B. Affected Landholdings

11. No landholding will be acquired for the subproject.

C. Affected Primary Structures

12. One structure inside the recreation park is totally affected (see footnote 1). The 135 m2 structure is made of various types of construction materials, specifically, roof of corrugated tin sheets; posts of concrete and wood; walls of bricks, plywood, and corrugated tin sheets; and floor of concrete cement. While the structure of the AP is entirely affected, he

2 Discussed were the results of the DMS in other suprojects of Luangnamtha. DMS for the LNT A3 Subproject was conducted in June 2018 only because there was just one affected person. 3 The Provincial Governor of Luangnamtha on 18 June 2018 approved the unit rates for computing compensation for assets affected by the project.

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cannot be considered as severely affected because the same is no longer in use and is just waiting to be demolished as explained in footnote 1.

Figure II-1 Affected Primary Structure

Noodle shop and concessionaire. Photo taken in December 2017 Sports building former noodle shop

D. Affected Other Structures

13. There are no affected other structures.

E. Affected Fruit and Timber Trees

14. Affected trees inside the recreation park belong to the Department of Education and Sport.

F. Temporary Impacts

15. Thirty-four regular vendors at the night market will move to an adjoining road where they will continue their nightly business activities while the market is being renovated. Also, 5 residents on the road where the night market vendors will relocate temporarily will be inconvenienced by the constriction of the roadway, although they will not lose any asset. In addition, 4 ambulant vendors selling souvenir items to tourists roam around Luangnamtha Town, including the night market, on a regular basis.

16. As mentioned in paragraph 4, arrangements to mitigate the temporary displacement of the vendors have been planned. Vendors will not experience disruption in their business operation while the night market is being renovated.

G. Affected Population

17. The owner of the former noodle shop at the recreation park is Vietnamese and lives alone; his family is in Vietnam. On the other hand, the 34 night market vendors are made up of 159 persons, including 86 (54.1%) females. The 4 ambulant vendors are made up of 16 persons, including 10 females. The 5 residents are made up of 27 persons, including 15 males. In all, the 44 AHs, inclusive of the Vietnamese, are made up of 203 persons. The average household size among the AHs is 4.6. (See Appendix 2 for the master list of AHs).

9

H. Unforeseen Impacts

18. New AHs/APs that will emerge in the course of project implementation (for example, due to changes in project scope) will be provided the same entitlements as those of the other AHs/APs.

I. Summary of Impacts

19. Table below gives a summary of the assets that AHs will lose on account of the subproject.

Table II-1 Summary of Impacts

Items Unit/

Quantity Area/Length/

Count

Land 0

Affected primary structure (1 AH) 135.0

Former noodle shop of mixed construction materials (tin sheets, plywood, wood, and concrete) m2 135.0

Various other structures 0

Timber and fruit trees 0

Temporary impacts

Vendors and residents at the night market no. 43

10

III. SOCIOECONOMIC PROFILE OF AHs

20. A socioeconomic survey (SES) covering all 44 AHs was carried out in June and October 2018. A questionnaire was used in the survey. (See Appendix 3 for an English translation of the survey form used).

A. Basic Information on the AH Heads

21. The residents of the 44 AHs are scattered in 16 villages of Luangnamtha. Eleven of the night market vendors reside in Phonxai, the location of the night market, while the rest of the night market vendors live in various other villages. Two each of the ambulant vendors live in Phonxai and Lukkham Villages, respectively. This information only shows that transferring temporarily the stalls of the vendors on the road at the back of the night market should not be a problem for the vendors who are used to commuting from home to the marketplace.

Table III-1 Residence of the AHs

Village Count Village Count

Houakhoua 2 Thong Om 1

Lukkham 2 Thongchai Neua 1

Namcang 1 Thongchai Tai 6

Namhom 2 Vieng Kham 1

Namtha 1 Vieng Neua 2

Nongbouavieng 1 Vieng Ngern 2

Oudomsin 7 Vieng Tai 3

Phonxai 11 Xaysomboun 1

Total 27 Total 17

22. Thirty-five of the AH heads (79.5%) were males. All 4 ambulant vendors were women, while the 5 other women AH heads were night market vendors. The youngest age among the AH heads was 25, a woman, while the oldest age was 75, a man. The average age among the AH heads was 48.6 years. Excluding the Vietnamese AP, 10 of the AH heads belonged 5 recognized ethnic minority groups in Lao PDR. These are Akha (4 AHs), Khmmu (3 AHs), Hmong (1 AH), Phounoi (1 AH), and Yao (1 AH). All 4 ambulant vendors belonged to the Akha group, while only 1 woman AH head among the night market vendors belonged to an ethnic minority group, the Khmmu. All 44 AH heads reportedly could read and write.

Table III-2 Ethnic Affiliation of the AH Heads

Ethnic Group Count Ethnic Group Count

Akha 4 Phounoy 1

Hmong 1 Taidam 18

Khmmu 3 Viet 1

Lao 7 Yao 1

Leu 8

23. With regards religious affiliation, 28 of the AH heads (63.6%) reported animism as their religion, while the rest reported Buddhism. Among the male AH heads, 22 (62.9%) reported animism as their religion. Likewise, 6 of the women AH heads (66.7%) reported animism as their religion.

Table III-3 Religion of the AH Heads

Gender Animism Buddhism Total

Male 22 13 35

Female 6 3 9

11

Gender Animism Buddhism Total

Total 28 16 44

B. Household Size

24. The 44 AHs, inclusive of the Vietnamese, were made up of 203 persons. The average household size among the AHs was 4.6

C. Primary Occupation of AH Heads

25. Nineteen of the AH heads (43.2%) reported vending as their main occupation. All female AH heads were into selling as their primary occupation. Among the 35 male AH heads, majority of them (10 persons or 28.6% each) reported vending and working in government, respectively, as their primary occupation.

Table III-4 Primary Occupation of the AH Heads

Occupation Count

% of Total Male Female Total

Vendor 10 9 19 43.2 Shop 4 4 9.1 Government employee 10 10 22.7 Private employee 2 2 4.5 Farming 3 3 6.8 Livestock 2 2 4.5 Hired labor 4 4 9.1

Total 35 9 44 99.9

D. Income

26. The monthly per capita household income of majority of the AHs (16 AHs or 36.4%) was within the LAK 1 million bracket. Twelve of the AH heads (27.3%) reported to have a monthly per capita household income of less than LAK 1 million but above the poverty threshold of LAK 240,000 per person for urban areas.4 The reported monthly per capita household income of 7 AHs (15.9 % of the total) was within the LAK 2 million bracket. There were 3 AHs that reportedly lived below the poverty line.

Table III-5 Monthly Per Capita Income of the AHs

Income Level (LAK) Male-

headed Female-headed

Total % of Total

8 million 1 - 1 2.3 5 million 2 - 2 4.5 3 million 2 1 3 6.8 2 million 5 2 7 15.9 1 million 14 2 16 36.4 Less than 1 million 9 3 12 27.3 Less than 240,000 2 1 3 6.8

Total 35 9 44 100.0

4 Per Decree No. 285/PM, issued on 13 October 2009 and remains applicable until 2015. Government has not yet issued a new poverty threshold.

12

E. Sanitation

27. The AHs get water for washing and drinking from various sources. Thirty-three of the AHs (75.0%) reportedly have piped water. Likewise, 29 AHs (65.9%) reportedly get water from open well (bore hole) also.

Table III-6 Source of Water

Source of Water

Number of AHs

Night Market Vendors

Ambulant Vendors

Vietnamese AP

5 Residents Total

Piped water supply 30 0 1 2 33

Tubewell/borehole 25 4 0 0 29

Protected/Covered dug well 8 0 0 0 8

Unprotected/Open dug well 10 4 0 0 14

River, lake , stream 12 4 0 0 16

28. Some of the AHs have 2 general types of toilets, water-sealed and dry pit latrine. Majority of the AHs (35 AHs or 79.5%) reportedly have water-sealed (pour or flush) toilets. Nineteen AHs (43.2%%) also reported to have dry pit latrines with concrete floor. None of the ambulant vendors has water-sealed (pour or flush) toilet.

Table III-7 Toilet Facilities

Toilet Facilities Number of AHs

Night Market Vendors

Ambulant Vendors

Vietnamese AP

5 Residents Total

Water sealed/ pour flush toilet 29 0 1 5 35

Dry pit latrine with floor slab, covered hole 15 4 0 0 19

F. Household Amenities

29. All 44 AHs have electricity. With regard fuel used for cooking, majority of the AHs use both LPG and wood/charcoal; 36 AHs (81.8%) use LPG, while 38 (86.4%) also use wood/charcoal.

Table III-8 Power Used for Lighting and Cooking

Fuel/Energy for Lighting and Cooking

Number of AHs

Night Market Vendors

Ambulant Vendors

Vietnamese AP

5 Residents Total

With electricity connection 34 4 1 5 44

Liquefied petroleum gas (LPG) 30 0 1 5 36

Wood/Charcoal 28 4 1 5 38

30. With regards ownership of appliances, all 44 AHs reported to own an electric fan, while 42 AHs (95.5%) reportedly own each a telephone and a television set. Likewise, 40 AHs (90.9) owned a rice cooker; 34 (77.3%), a refrigerator; and 33 (75.0%), a satellite dish.

Table III-9 Ownership of Appliances

Appliances Number of AHs

Night Market Vendors

Ambulant Vendors

Vietnamese AP

5 Residents Total

Telephone 34 2 1 5 42

Electric fan 34 4 1 5 44

Air Condition 10 0 0 4 14

Refrigerator 28 0 1 5 34

Rice cooker 34 0 1 5 40

Television 34 2 1 5 42

13

Appliances Number of AHs

Night Market Vendors

Ambulant Vendors

Vietnamese AP

5 Residents Total

Satellite dish 25 2 1 5 33

CD player or DVD 22 0 1 2 25

Radio 25 4 1 2 32

31. Most of the AHs (43 households or 97.7%) owned a bicycle, while 36 AHs (81.8%) owned a motorbike. Twenty-nine of the AHs (65.9%) owned a car or pick-up. Seventeen AHs (38.6%) owned a truck.

Table III-10 Ownership of Appliances and Transportation

Transportation Number of AHs

Night Market Vendors

Ambulant Vendors

Vietnamese AP

5 Residents Total

Car / Pick-up 24 0 0 5 29

Truck 12 0 0 5 17

Tricycle (tuktuk, jumbo) 3 0 0 0 3

Motor bike 30 0 1 5 36

Bicycle 34 4 0 5 43

Boat 4 0 0 0 4

14

IV. PROJECT RESETTLEMENT POLICY AND ENTITLEMENTS

32. As mentioned in Chapter 1 (para 6), the legal basis of the project resettlement policy has been discussed in detail in the June 2015 Luangnamtha Subproject RP agreed by MPWT and ADB. The resettlement policy has been developed from the laws of the Government of Lao PDR, principally the Constitution (1991), the Land Laws (1997 and 2003), the Road Law (1999), Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Project, No.192/PM, dated 7 July 2005, as amended by Decree No. 84, dated 5 April 2016; the Regulations for Implementing Decree of the Prime Minister on Compensation and Resettlement of People Affected by Development Project, No.2432/STEA, dated 11 November 2005; the Decree on Environmental Assessment (EA), February 2010 (112/PM); the March 2010 updated Technical Guidelines for Implementing Decree 192/PM; and ADB’s 2009 Safeguard Policy Statement (SPS). Provisions and principles adopted in the project resettlement policy will supplement the provisions of relevant decrees currently in force in Lao PDR. Wherever a gap exists, the higher standard will apply.

A. Project Principles

33. Table below highlights the project’s resettlement principles.

Table IV-1 Project Principles

No. Topic Key Principles

1 Owners / Users of Affected Assets

Owners and/or users of affected assets and loss of resources or access to resources shall be entitled for compensation and rehabilitation measures.

2 Lack of legal rights to the assets lost would not bar the project-affected people from entitlement to such compensation and rehabilitation measures.

3 Land Acquisition, Compensation and Resettlement (LACP) Planning

If possible, involuntary resettlement and loss of land, structures and other assets and incomes shall be avoided and minimized by exploring all viable options

4 Preparation of resettlement plans and their implementation shall be carried out with participation and consultation of project-affected people.

5 Schedule of budget for resettlement planning (including socio-economic surveys and/or census) and implementation shall be incorporated in project planning and financing.

6

Compensation for Affected Persons (APs) / Affected Households (AHs)

Project affected people shall be provided with compensation for their lost assets, incomes and businesses. The provision with rehabilitation measures shall be sufficient to assist project-affected people in improving or at least maintaining their pre-project living standards, income levels and productive capacity.

7 Replacement of affected assets shall be provided following the principle of replacement costs, without deduction for the value of salvaged materials, taxes, transaction costs and depreciation.

8

Payment of compensation or replacement of affected assets and any resettlement to new locations all concerning project affected people shall be completed prior to the award of civil works contract. Rehabilitation measures must also be in place, but not necessarily completed, as these may be ongoing activities

9

Compensation and rehabilitation assistance for ethnic minorities, and socially disadvantaged such as households headed by women, the disabled and elderly, the landless and poor would be carried out with respect for their cultural values and specific needs.

15

B. Project Entitlements

34. Table below outlines the entitlements of APs/AHs based on the type and severity of their losses, in addition to their socioeconomic condition.

Table IV-2 Entitlement Matrix

Type of Losses Entitled Persons Entitlements Implementation

Issues A. Land Residential Land Owners with legal

title (Legal users are those with recognized land use rights such as registered title, land certificate, survey certificate, tax receipts and including unregistered users as per Land Law) (0 AH)

Cash compensation at the replacement cost value according to agreed rate With remaining land sufficient to rebuild affected houses/ structures of similar size: (i) Cash compensation for the affected portion at replacement cost which is equivalent to the prevailing market value of land of similar type and category, and free from transaction costs (taxes, administration fees); and (ii) Project contractor to improve remaining residential land at no cost to APs (e.g. filling and leveling) so APs can move back on remaining plot. Without remaining land sufficient to rebuild houses/ structures: Replacement land equal in area, same type and category and acceptable to the AH, without charge for taxes, registration and land transfer OR cash compensation at replacement cost which is equivalent to the prevailing market value of land of similar type and category, free from transaction costs (taxes, administration fees) plus assistance to purchase and register land.

Voluntary donation of land will not be allowed by the project. If land-for-land is offered, title or LURC should be registered to both husband and wife

Agricultural land Owners with legal title (Legal users are those with recognized land use rights such as registered title, land certificate, survey certificate, tax receipts and including unregistered users as per Land Law) (0 AH)

Cash compensation at the replacement cost value according to agreed rate

Voluntary donation of land will not be allowed by the project. If land-for-land is offered, title or LURC should be registered to both husband and wife

Pond area Owners with legal title (Legal users are those with

Cash compensation at the replacement cost value according to agreed rate

Voluntary donation of land will not be allowed by the project.

16

recognized land use rights such as registered title, land certificate, survey certificate, tax receipts and including unregistered users as per Land Law) (0 AH)

B. Loss of Trees

Owner of trees (Legal users are those with recognized land use rights such as registered title, land certificate, survey certificate, tax receipts and including unregistered users as per Land Law) (0 AH)

For perennial trees/ cash compensation at replacement cost equivalent to current market value based on type, age, and productive capacity as per rate agreed by the grievance resettlement committee For timber trees, cash compensation at replacement cost equivalent to current market value based on type, age and diameter at breast height (DBH) of trees.

APs have the right to use salvageable trees. Compensation will be based on the volume of recovery at current market value of timber trees. AHs to be given advance notice of any tree removal.

E. Structures Fully affected structures

Owners regardless of tenure status, fully affected (1 AH)

Cash compensation at replacement cost for the affected portion equivalent to prevailing market prices of (i) materials, with no deduction for depreciation of the structure or salvageable materials; (ii) materials transport; and (iii) labor cost to cover cost for dismantling, transfer and rebuild. Includes right to salvage material from structure Provision of all taxes, registration costs, and other fees incurred for replacement structure. Rental allowance will be provided to the HHs with houses rebuilt or removed. Transport allowance will be provided to all HH relocating structures

Partially affected structures

Owners regardless of tenure status, partially affected (0 AH)

Cash compensation at replacement cost for the affected portion equivalent to prevailing market prices of (i) materials, with no deduction for depreciation of the structure or salvageable materials; (ii) materials transport; and (iii) labor cost to cover cost for dismantling, transfer and rebuild. Includes right to salvage material from structure.

17

Provision of all taxes, registration costs, and other fees incurred for replacement structure. For partially affected main structures where the remaining structures remain viable for continued use, a repair allowance of 10% of the compensation amount will be provided.

F. Business Disruption

Owners regardless of tenure status (34 AHs)

Loss of income /profit for 2 months Decree 192: persons whose businesses are affected due to the project, in addition to compensation for lost land, structures, and income, assistance shall be given to finding replacement sites with comparable commercial advantage.

The project will construct temporary stalls on one side of the road behind the market in order to preclude disruption in the business operation of 34 regular vendors.

G. Assistance / Income restoration Assistance for severely affected Household

Household losing more than 10% of their productive land, or are required to relocate, or lose business, or have small remaining area not sufficient for agri/aqua production (0 AH)

Allowance of 1-month wages (50,000/day)/AH The contractors will make all reasonable efforts to employ the severely APs for construction Decree 192: All APs severely affected by the project due to loss of 10% or more of productive income generating assets (loss of agricultural, industrial or commercial land), means of livelihood, employment or business and access to community resources shall be entitled to income restoration measures in addition to their entitlement for compensation and other allowances enabling them to attain pre-project livelihood levels.

Special assistance to vulnerable AH

Vulnerable households (22 AHs)

Provision to restore their living conditions, livelihoods and income levels according to Decree 192; Allowance of 1-month wages (50,000/day)/AH

Repair allowance Repair of structures partially affected on remaining land (0 AH)

Provision of repair allowance equivalent to 10% of the compensation amount.

Rental Allowance All AHs who will reconstruct house on remaining land

Provision of rental allowance during reconstruction of houses for 3 months at the rate of

18

(0 AH)

750.000 kip/household/month

Transportation Allowance

All HHs with houses and shops/restaurant fully affected (1 AH)

Provision for transport of materials to new location or cash assistance of 500,000 LAK/AH

Unanticipated impacts / assistance

AP identified with unanticipated impacts during updating RP

The unanticipated impacts identified during the DMS will be addressed in accordance with the policy specified in the RP

C. Cut-off Date for Eligibility to Project Entitlements

35. This refers to the date prior to which the occupation or use of the project area (i.e., right-of-way or ROW) makes residents/users of the project area eligible to be categorized as AHs. The cut-off date for subprojects in Luangnamtha Town is 25 November 2017 as declared in the 23 November 2017 decision of the Luangnamtha Provincial Governor and disseminated broadly through town and village authorities. The executive decision of the Luangnamtha Governor identified the subprojects in Luangnamtha and their respective ROWs, advising all concerned not to construct or use any portion thereof, especially government land. Persons who occupy government land inside the ROW subsequent to the cut-off-date are not eligible to compensation and other entitlements. The Provincial Resettlement Committee (PRC) reiterated the cut-off-date in public meetings and discussions with affected households (AHs).

D. Unit Costs of Affected Assets

36. As mentioned earlier (para 8), the Provincial Resettlement Committee (PRC) met on 18 December 2017 to discuss the results of the DMS.5 During the meeting, the PRC formed a task force that would carry out a study and recommend the unit rates for computing compensation for project affected assets based on (i) rates used in other projects in the town, (ii) existing government legislated rates, and (iii) market prices. The Provincial Governor of Luangnamtha on 18 June 2018 approved the unit rates for computing compensation for assets affected by the project (See Appendix 4 for the Provincial Governor’s decision on the unit rates for calculating compensation for GMS2 subprojects in Luangnamtha).

5 Refers to the DMS carried out in other subprojects in Luangnamtha.

19

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

37. As mentioned earlier (para 7), public consultations with stakeholders of various subprojects in Luangnamtha started on 25 November 2017. Spearheading the consultations was the Provincial Resettlement Committee, composed of representatives from the Department of Public Works and Transport (DPWT), the Project Coordination Unit (PCU), and Village Resettlement Committees (VRC). Among others, matters discussed during the public consultations were: (i) the policy on cut-off-date for eligibility to project entitlements; (ii) land acquisition and compensation process; (iii) roles of the DMS and compensation team, the resettlement and compensation committee, and the grievance redress committee; (iv) need for public consultation and participation; (v) the grievance redress mechanism; and (vi) schedule and process of the DMS and socioeconomic survey (SES).

A. Vendors

38. Specific to the night market vendors, the first public consultation with them was held on 28 June 2018 at the Provincial Information, Culture and Tourism Office (PICTO). Main agenda of this meeting revolved around the renovation plan for the night market. Also discussed was the project’s resettlement policy. A total of 104 persons attended, 95 (91.3%) of who were women. (See Appendix 5 for a scanned copy of the registration of participants).

39. On 26 July 2018 a second consultation at PICTO was held with vendors and the 5 residents living on the road at the back of the night market. Discussed during this consultation was the place on which to relocate the vendors while the night market is undergoing renovation. Three roads were considered: (i) the road section in front of Provincial Tourism Office and the Provincial Interior Office, (ii) the road section in front of the Provincial Financial Office, and (iii) the road section in front of the Public Work and Transport office near the old sports building. The participants were informed that the project will construct temporary stalls, and that there would be no change in the market fees that vendors presently pay when they move to the temporary roadside stalls.The vendors were assured of a place at the night market following its renovation and will pay the same fees as they do presently. At the conclusion of the dialogue, the participants chose the road section in front of Provincial Tourism Office and the Provincial Interior Office as the temporary place for the vendors. Twenty-seven persons attended the consultation, including 11 women. (See Appendix 6 for a scanned copy of the minutes of meeting issued by PICTO on 32 July 2018).

40. Another meeting with residents of the road where stalls of the night market vendors will be constructed temporarily was held on 17 October 2018 at PICTO. The 5 residents raised the following concerns: (i) increased volume of trash at their place, (ii) increased noise, and (iii) disturbance because the night market operates from 5 to 11:30 PM daily. At the end of the meeting, the residents agreed with the plan to use half of the road for the night market vendors. It was also agreed that the closing of business operation at the temporary site of the market would be changed to 11 PM. Likewise, the flow of traffic through the road would be managed and that residents would have unhampered access to and from their homes. Seven persons attended the meeting, including 5 women. (See Appendix 7 for a scanned copy of the registration of participants).

41. A group consultation with ambulant vendors was carried out on 15 October 2018 at the night market. The ambulant vendors are the least affected by the temporary closure of the night market because they roam around town freely. (See Appendix 8 for pictures of the ambulant vendors during the meeting).

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B. Recreation Park

42. On 18 October 2018 at the Department of Pubic Works and Transport (DPWT) office, the PIU held a consultation-meeting with residents living near the recreation park. Nine persons, including 2 women, attended. Discussed during the meeting was the plan to rehabilitate the park and sports building. The participants welcomed this development. (See Appendix 9 for a scanned copy of the registration of participants).

C. During RP Implementation

43. Consultation and disclosure activities with the AHs and stakeholders will continue during the implementation of the LACP. Following concurrence by ADB to the LACP, a full copy of the same in Lao language will be made available at the PCU and DPWT, and a summary version in Lao language at the offices of affected villages. Social monitoring reports will also be made available at village offices and the same will be uploaded on the ADB website.

21

VI. GRIEVANCE REDRESS

44. Article 13 of Decree 192/PM requires the Project to establish an effective mechanism for grievance resolution. Lao legal requirements for this mechanism are further described in Part VI of the Decree’s Implementing Regulations, and in detail in the Technical Guidelines. The objectives of this mechanism are to ensure AHs’ satisfaction with the implementation of the RP.

45. Decree 192/PM determines that the prime responsibility for grievance resolution rests on the Project proponent. As they are responsible for carrying out Project works which are likely the source of grievances (such as the DMS, establishing replacement costs, determining other allowances as well as any other project related matters), they are best placed to respond to and resolve grievances in the most timely and acceptable method. However, should AHs remain dissatisfied, they may bring up their complaints for resolution as described below.

Table VI-1 Grievance Redress Process

Steps, Actions and Levels of Intervention Duration

▼ V I LL A G E

1

1.1 The AP (Complainant) explains problem/issue verbally or in writing to one of the following;

Village mediation committees (VMCs), village women union, GMS2 village coordinator, village senior advisor, construction site supervisor, contractor engineer, and district project coordinator. They would be the first contact for affected persons (APs) to raise their concerns. If unwritten the VC will record details of the complaint and provide consideration based on their traditional method of conciliation and mediation. Multiple points of entry for grievances is encouraged although said written grievance should be submitted to the VMC as the repository for grievances. At the village level, AP files a complaint/grievance verbally or in writing to the Village Committee to seek faster resolution at village level.

1.2 The VMC is responsible for land acquisition and compensation (LAC) issues and/or the village would establish a sub-project related village LAC committee.

1.3 The committee aims to provide clarifications and solutions within its village and with the complainant.

1.4 This mediation aims at a sub-project internal immediate solution.

1.5 If the complaint cannot be solved at this stage, the next step applies.

10 days

▼ S U B – P R O J E C T

2

If not solved before:

2.1 Complainant presents complaint/s or grievance/s verbally or in writing.

2.2 A sub-project grievance committee (SPGC) would be the second contact for affected people (APs) to address their concerns.

2.3 Registration of the complaint by SPGC.

2.4 In collaboration with VMC and AP this SPGC would elaborate on the complaint.

2.5 If the complaint cannot be solved at this stage, the next step applies.

further

10

days

▼ D I S T R I C T

3

If not solved before:

3.1 APs would address their complaints to the Grievance Redress Committee (GRC).

3.2 Involvement of authorities and departments

3.3 Collaboration with APs, SPGC and village committee.

further

10

days

22

Steps, Actions and Levels of Intervention Duration

3.4 This level aims at a formal, mutual agreement to solve the grievance.

3.5 If the complaint cannot be solved at this stage, the next step applies.

▼ P R O V I N C E

4

If not solved before:

4.1 APs with or without support from CSO/NGO, but with assistance from the sub-project would address their complaints to the provincial departments and possibly the governor’s office.

4.2 Shall involve the GRC.

4.3 Can involve independent, external advice on the issues of the complainant.

4.4 This level aims at a formal, mutual agreement to solve the grievance.

4.5 Before applying step 5, provincial and district staff should make final efforts to find an agreement with the AP.

3.6 If the complaint cannot be solved at this stage, the next step applies.

further

10

days

▼ C O U N T R Y

5

If not solved before:

5.1 Final step to solve land acquisition, boundary and/or compensation issue.

5.2 Court will take note and register the case.

5.3 Court to provide final decision.

5.4 In case of required actions, the complainant and/or sub-project proponent is obliged to follow the findings and decision of the court.

Open, but

further

20

days

Notes

N-1: The shown approach is in line with the Technical Guidelines on Compensation and Resettlement of Affected People by Development Project, March 2010.

N-2: The shown days per step should be understood as a maximum duration.

N-3: The grievance procedures are also applied for environment related complaints.

46. An aggrieved AH may also bring its complaint directly to the ADB Lao Resident Mission, or to the ADB Office of the Special Project Facilitator. The PCU will keep a record of grievances received, including names and pertinent information about the AHs, nature of the complaints, dates the complaints are lodged, and resolution of the same. Grievances not resolved will also be recorded, detailing negotiations and proposals which could not be agreed on, and the dates these negotiations took place.

.

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VII. INSTITUTIONAL ARRANGEMENTS

A. Executing Agency and Implementing Agency

47. The Ministry of Public Works and Transport (MPWT), along with its Department of Housing and Urban Planning (DHUP), is the executing agency (EA). The Department of Public Works and Transport (DPWT), through the Project Implementation Unit (PIU) of Luangnamtha, is the implementing agency (IA) and is responsible for the direct supervision and execution of the subproject.

B. Provincial Resettlement Committee

48. A provincial resettlement committee (PRC) has been established in the province with members from relevant departments, including DPWT, Lao Women’s Union (LWU), and Department of Finance and Investment and Planning. The role of the PRC in LACP preparation and implementation includes (i) conducting consultation meetings with the AHs; (ii) establishing compensation rates at replacement cost for affected assets; (iii) conducting, reviewing and confirming the DMS data; (v) approving final agreement on compensation with the AHs; (v) managing funds for compensation disbursed by the Provincial Department of Finance; (vi) monitoring all RP activities; and (vii) acting as a grievance officer. The Village Resettlement Committee (VRC) supports the PRC.

C. Indicative Schedule of LACP Preparation and Implementation

49. Table below summarizes the various inter-related activities in the preparation and implementation of the LACP. Land acquisition cannot commence until the LACP has been concurred in by ADB. The PCU will not allow construction activities in any component of the subproject until payment of compensation and allowances of AHs has been completed satisfactorily and the site is free of encumbrances.

Table VII-1 Schedule of LACP Preparation and Implementation

Activities Schedule Detailed measurement survey November-December 2017 Market study and decision on project unit rates March 2018 Public consultation with AHs and other stakeholders November 2017 – October 2018 Submission by PCU of the draft LACP to ADB October 2018 Posting of the draft LACP in relevant government offices and on the ADB website

October 2018

ADB concurrence to the LACP November 2018 Payment of compensation and allowances November 2018 Clearing of the ROW November 2018 Start of civil works December 2018 Start of internal monitoring (with quarterly progress reports) October 2018

24

VIII. RESETTLEMENT COSTS

50. Following sections discuss in detail the compensation and assistance the project will provide the AHs/APs for their losses.

A. Compensation for Land

51. No land will be acquired for the subproject.

B. Compensation for Primary Structures

52. The AP that owns a 135 m2 semi-permanent structure (former noodle shop) at he park is entitled to receive LAK 117,450,000 in compensation. In addition, the AP will receive a one-time cash allowance of LAK 500,000 to transport materials that he wants to salvage from his abandoned structure. The AP is not eligible to receive an income restoration allowance for reason explained in footnote 1. (See Appendix 11 for a satellite view of the present location of the noodle shop).

C. Compensation for Other Structures

53. The subproject will not acquire any other structures.

D. Affected Trees

54. The subproject will not acquire any trees.

E. Cash Assistance to Eligible AHs

55. Cash allowance amounting to LAK 33,000,000 will be given to 22 vulnerable AHs.

Table VIII-1 Cash Assistance for Vulnerable AHs

HH - ID Women Headed

65 Yrs. and Over

Physical Condition

Ethnicity Poor Special

Assistance

NT_501 ✓ Akha 1,500,000

NT_502 ✓ Akha 1,500,000

NT_503 ✓ Akha 1,500,000

NT_504 ✓ Akha 1,500,000

NT_199 Viet 1,500,000

NT_436 Phounoy 1,500,000

NT_437 65.00 Hmong 1,500,000

NT_400 72.00 1,500,000

NT_403 ✓ 1,500,000

NT_405 65.00 1,500,000

NT_406 ✓ 1,500,000

NT_408 ✓ 1,500,000

NT_413 Khmmu 1,500,000

NT_415 Yao 1,500,000

NT_418 ✓ 1,500,000

NT_420 68.00 1,500,000

NT_421 ✓ 1,500,000

NT_422 ✓ 65.00 Khmmu ✓ 1,500,000

NT_423 ✓ 1,500,000

NT_424 Khmmu 1,500,000

NT_425 ✓ 1,500,000

NT_428 75.00 1,500,000

Total 9 6 1 11 3 33,000,000

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F. Budget for Temporary Stalls of Night Market Vendors

56. The Provincial Information, Culture and Tourism Office (PICTO) on 21 June 2018 submitted to the PRC the estimated cost to set up temporary stalls for vendors on the road behind the night market. The budget estimate was prepared following the 18 June 2018 public meeting (see para 38). It was agreed that the cost of the temporary market will be borne by the subproject. (See Appendix 10 for a scanned copy of the letter with budget details).

Table VIII-2 Budget for Temporary Stalls

Item

Description Number Unit Cost Cost

1 Tables 100 180,000 16,200,000

2 Chairs 318 38,000 12,084,000

3 Tents 44 420,000 18,000,000

4 Fuel 200,000

5 Labor cost 1,000,000

6 Moving the water taps and meters 3,200,000

7 Set up power supply and power outlets 97,448,085

8 Signage 6 500,000 3,000,000

9 Traffic cones 6 250,000 1,500,000

Total Budget 152,632,085

G. Source of Funds for Resettlement

57. Funds for the implementation of the LACP, including payment of compensation and cash assistance to AHs, is borne by the provincial government of Luangnamtha.

H. Flow of Funds for Compensation and Cash Assistance

58. Based on the compensation plan approved by the PRC, the PIU will request the Department of Finance to disburse the budget for paying the compensation and allowances of AHs. The compensation money and cash allowance of the AHs will be remitted to their individual bank accounts.6 The PRC and VRC will notify the AHs about the time their monies are remitted to their bank accounts.

I. Implementation, Administration and Contingency Costs

59. Administrative costs connected with the implementation of the LACP, in addition to the cost of monitoring, are included in other budget items of the whole project. Therefore, only the cost of compensation, cash allowance, measures to mitigate the temporary relocation of vendors, and a 10% contingency are reflected in this LACP. The DPWT will ensure that adequate funds are made available as and when necessary for the efficient and timely implementation of resettlement.

J. Estimated Cost of Resettlement

60. The estimated costs of resettlement for the subproject is calculated at LAK 333,940,293.5 or US$ 39,287.

6 Subsequent to the approval of the compensation plan of the AHs, the PIU will open a bank account for the AH.

26

Table VIII-3 Summary of Resettlement Costs

Items Amount (LAK)

Compensation 117,450,000 Abandoned semi-permanent structure 117,450,000 Allowance 33,500,000 Transportation of 1 AP 500,000 Vulnerable AHs 33,000,000

Mitigation of resettlement impacts 152,632,085

Construction of temporary night market stalls 152,632,085

Total Cost of Compensation, Allowances and Mitigation 303,582,085.00

Contingencies (10% of cost of compensation and allowances) 30,358,208.50

Grand Total 333,940,293.5 (US$ 39,287)

27

IX. MONITORING AND EVALUATION

A. Internal Monitoring

61. The PCMU, in cooperation with the PIU, will regularly monitor the implementation of the LACP to help ensure that resettlement is implemented as planned. Internal monitoring will commence from the time of submission of the draft LACP to ADB for concurrence. Quarterly internal monitoring reports will be submitted to MPWT and ADB. Internal monitoring reports will be disclosed publicly

62. Internal monitoring and evaluation will assess the implementation of the LACP according to the following criteria:

a. Assessing if mitigation measures and compensation are sufficient.

b. Identifying methods of responding expeditiously to mitigate problems.

c. Smooth transition between LAC activities and civil works.

d. The grievance redress mechanism is functioning.

e. Safeguard contractual obligations of the civil works contractor are complied with.

f. Provisions of the loan covenant are met.

B. External Monitoring

63. External monitoring will be carried out by an independent entity for the whole project. The external monitor (EM) will submit semi-annual reports to ADB and PCU. Its tasks include verification, evaluation and review of the following:

a. Internal monitoring reports.

b. Consultation process and procedures to resolve complaints.

c. Land acquisition, resettlement and relocation procedures.

d. Payment of compensation of AHs based on the entitlement matrix.

e. Satisfaction of AHs regarding the implementation of the LACP.

f. Adequacy of income restoration assistance provided.

g. Relocation of AHs.

h. Implementation of gender and indigenous specific actions.

i. Project impacts on the lives of AHs after their resettlement.

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APPENDIX 1 DMS QUESTIONNAIRE

ຄ າ ພ ັ ະ າ ັ ວ ັ າ ລວ ະ ັ ະ ັພາ ພັ ັ ັ ັ ັ າ 2 .Page 1 of 6 ລະ ັ ຄຄ:

ຄ າ ພ ັ ະ າ ັ ວ ັ າ ລວ ະ ັ

າ ັພາ ພັ ັ ັ ັ ັ າ 2

ລາວ ັ ັ ັ ັ ລ ັ .

3315/8296 LAO

ັ ັ ັ ຄັ ວ ັ

ລະ ັ ຄັ ວ ັ HX

ຊັ ັ ັ ວໜັ າຄ ຄັ ວ

ຊັ ັ ຄັ ັ ັ ລັ

ັ າ ັ ັ ັ ັ ັ

ັ

ວ

ັ ັ ັ ັ ັ ັັ ຊ ັ ັ

ຊັ ັ ຄ າ ຍັ ຍ

ັ ັ ັ າ

ັ າ ຊ ັ ັ ັັ ັ ັ

ັ ຊ ັ ັ ັັ ັ ັ

ວ ັ ັ ັ ຊ ັ ັ

ະ ພ ັ ັ ັ o ັ ັ ັ າ , o ັ ັລະ ັ , o ັ ະ ັ ັ າ, o ັ ັ າ ວັ າ , o ັ ັ ໆ

(ລະ ັ)

ລາຍ າ ຊ ັ ັ ັ ວ

ລະ ັ ຊ ັ ັ

ັ ັ ັ ພັ ັ ັ ັ :

29

30

31

32

33

34

APPENDIX 2 MASTER LIST OF AFFECTED HOUSEHOLDS

HH-ID Village Name of Head HH Gender of AH Head

Age of AH

Head Ethnicity Religion Occupation

NT_501 Lukkham Zapho Female 58 Akha Spirit Souvenir Seller

NT_502 Phonxai Yertou Female 63 Akha Spirit Souvenir Seller

NT_503 Lukkham Sor Female 60 Akha Spirit Souvenir Seller

NT_504 Phonxai Boulo Female 61 Akha Spirit Souvenir Seller

NT_199 Xaysomboun Touy Male 43 Viet Spirit Shop

NT_435 Phonxai Thongdam Male 38 Lao Buddhism Shop

NT_436 Phonxai Khamsouk Male 41 Phounoy Buddhism Shop

NT_437 Phonxai Somchai Male 65 Hmong Spirit Shop

NT_438 Phonxai Xomphou Male 38 Leu Buddhism Government employee

NT_439 Phonxai Phonsavanh Male 36 Taidam Spirit Government employee

NT_400 Thongchai Tai Boualeua Male 72 Taidam Spirit Farming

NT_401 Houakhoua Bounhouam Male 44 Taidam Spirit Hired labor - most of the year

NT_402 Phonxai Thongdam Male 38 Lao Buddhism Shop

NT_403 Nongbouavieng Chanthone Female 25 Lao Buddhism Not Specify

NT_404 Vieng Ngern Bounthone Male 43 Taidam Spirit Government employee

NT_405 Oudomsin Sunthone NOYBOUNKEO Male 65 Taidam Spirit Government employee

NT_406 Vieng Neua Sunthone BOUNTHONG Male 62 Leu Buddhism Disable

NT_407 Namtha Sone Male 43 Leu Buddhism Hired labor - most of the year

NT_408 Thongchai Neua Khamnang Female 53 Leu Buddhism Not Specify

NT_409 Vieng Kham Somsanit Male 38 Leu Buddhism Not Specify

NT_410 Vieng Tai Yok KEOBOUNMY Male 54 Taidam Spirit Livestock

NT_411 Thongchai Tai Khamsy Male 55 Taidam Spirit Employee - private sector

NT_412 Vieng Tai Khampherng Male 47 Taidam Spirit Hired labor - most of the year

NT_413 Thongchai Tai Norkeo (Orkeo) Male 59 Khmmu Spirit Hired labor - most of the year

NT_414 Namcang Somxay Male 31 Leu Buddhism Government employee

NT_415 Vieng Tai Thorlinthong Male 58 Yao Spirit No skills

NT_416 Vieng Ngern Xayvong Male 62 Leu Buddhism Employee - private sector

NT_417 Phonxai Xay Chanhthaonsy Male 37 Taidam Spirit Shop

NT_418 Thongchai Tai Sonephet Female 44 Taidam Spirit Not Specify

NT_419 Thongchai Tai Khamlai SYPASERT Male 49 Lao Buddhism Government employee

NT_420 Thongchai Tai Hia Male 68 Taidam Spirit Not Specify

NT_421 Phonxai Sisouphanh Male 51 Lao Buddhism Business

NT_422 Oudomsin Long Female 65 Khmmu Spirit Not Specify

NT_423 Namhom Thongsay Male 44 Taidam Spirit Shop

NT_424 Oudomsin Bounny Male 32 Khmmu Spirit Government employee

NT_425 Vieng Neua Phavanh Female 42 Lao Buddhism Not Specify

NT_426 Houakhoua Houam Male 46 Taidam Spirit Business

NT_427 Namhom Khamphan Male 47 Lao Buddhism Government employee

NT_428 Thong Om Thone Male 75 Taidam Spirit Farming

NT_429 Oudomsin Mian Male 54 Taidam Spirit Farming

NT_430 Phonxai Noy Male 31 Leu Buddhism Business

NT_431 Oudomsin Bounsy SYSAAT Male 49 Taidam Spirit Livestock

NT_432 Oudomsin Tam LORMIXAY Male 33 Taidam Spirit Government employee

NT_433 Oudomsin Khammoun PASANMIT Male 52 Taidam Spirit Government employee

35

APPENDIX 3 SOCIOECONOMIC SURVEY QUESTIONNAIRE

36

37

38

39

40

41

APPENDIX 4 LUANGNAMTHA GOVERNOR’S DECISION ON UNIT RATES

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

APPENDIX 5 REGISTRATION OF PARTICIPANTS, 28 JUNE 2018

58

59

60

61

62

Photo of the consultation

63

APPENDIX 6 MINUTES OF MEETING STAKEHOLDERS, 26 JULY 2018

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APPENDIX 7 REGISTRATION OF PARTICIPANTS, 17 OCTOBER 2018

66

Photo of the consultation with the 5 residents

67

APPENDIX 8 MEETING WITH AMBULANT VENDORS

68

APPENDIX 9 PARTICIPANTS REGISTRATION, 18 OCTOBER 2018

69

APPENDIX 10 BUDGET PROPOSAL FOR THE TEMPORARY STALLS

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APPENDIX 11 PRESENT LOCATION OF NOODLE SHOP OF ONE AP

Former location at recreation park

Present location of noodle shop