NTPC Nam Theun 2 Power Company Ltd. Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1:General Information October 2007 1)ocument No. I N T P C ~ S ~ K410 3 o o 4 1 0o o o oI I A ( IJ C'ontidcnt~al Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1. Information General October 2007 Table of Contents Page List of Acronyms ......................................................................................................................iv Foreword ....................................................................................................................... 1 Executive Summary ..................................................................................................................2 1 Introduction ..................................................................................................................4 1.1 The Nam Theun 2 Hydroelectric Power Project . rationale. description and its regional context .....................................................................................................................4 1.1.1 Rationale ............................................................................................................4 1.1.2 Description ........................................................................................................4 1.1.3 Regional context ................................................................................................5 1.2 NT2 Project affected areas .......................................................................................6 1.3 Efforts to minimize displacements and resettlement .............................................9 1.4 Purpose and Objectives of the Resettlement Action Plan .....................................9 2 NT2 Project impact ....................................................................................................10 2.1 Socio-economicSurvey ...........................................................................................10 2.1.1 Ethnic groups ..................................................................................................10 2.1.2 Gender .......................................................................................................10 3 Legal Framework of NT2 Compensation and Entitlements ...................................12 3.1 Introduction .........................................................................................................12 3.2 Legal framework ....................................................................................................12 3.3 The Concession Agreement ....................................................................................12 3.3.1 Compensation and Resettlement ...................................................................12 3.4 Eligibility ................................................................................................................13 3.4.1 PAH .Project Affected Households: ............................................................13 3.5 PAH Entitlements .................................................................................................13 3.5.1 Nam Theun 2 Resettlement Policy ................................................................20 3.5.2 Resettlement Committee Regulations ...........................................................21 3.5.3 World Bank and Asian Development Bank Operational Procedures .......21 4 Institutional Arrangement ......................................................................................... 22 4.1 Overall Organization and Coordination of Responsibilities ..............................22 4.2 GOL Resettlement Organizations ..................................................................... 23 4.3 NTPC1sResettlement Organization ......................................................................23 4.4 Grievance Committee .............................................................................................24 4.5 Other Agencies and Organizations ....................................................................... 26 4.5.1 Provincial Authorities ....................................................................................26 4.5.2 Lao Women's Union (LWU) ..........................................................................26 4.5.3 Consultants and Contractors .........................................................................26 4.5.4 International programs ..................................................................................27 4.5.5 NGOs ...............................................................................................................27 5 Public Consultation, Participation, Disclosure (PCPD) And Grievance ...............28 5.1 Introduction ............................................................................................................28 5.2 Approach. objectives and components of Project Land Consultations .............29 NTPC-S-K04-0304-00000 1-A Page i of 66 Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1. General Information October 2007 5.2.1 Approach and objectives ...............................................................................9 2 5.2.2 General ............................................................................................................29 5.2.3 Baseline Study Consultations ........................................................................30 5.2.4 Village and District-level Recurrent Consultations .....................................30 5.2.5 Consultations on the relocation of Physical and Cultural Resources (PCR) ..........................................................................................................................31 5.2.6 Disclosure ........................................................................................................32 5.2.6.1 IEC strategy ....................................................................................................32 5.2.6.2 Exit Strategy ..................................................................................................33 5.2.7 Grievance Redress Mechanism (GRM) ........................................................33 5.3 Special consideration of vulnerable groups .........................................................34 5.3.1 Gender action planning ..................................................................................34 5.3.2 Ethnic minority development planning ........................................................35 6 Compensation. income and livelihood restoration ..................................................36 6.1 General principles of compensation and livelihood restoration .........................36 6.1.1 Compensation entitlement .............................................................................38 6.2 PAH impacted less than 1O0/o ................................................................................38 6.3 PAH impacted More than 10% .............................................................................39 6.3.1 Interim and final compensation ....................................................................41 6.3.2 Land .................................................................................................................41 6.3.3 Crops, trees. fish ponds and other productive assets ..................................42 6.3.4 Project Land Livelihood Restoration Strategy .............................................42 6.3.4.1 Introduction ....................................................................................................42 6.3.4.2 Development of irrigation - a misconception ..............................................42 6.3.4.3 Farmers' preferences .....................................................................................43 6.3.4.4 Integrated strategy for livelihood restoration ..............................................43 (a) PAH selection criteria for livelihood activities .............................................44 6.3.4.5 Rice production improvement (wet season) .................................................45 6.3.4.6 Cash Crops and Horticulture ........................................................................46 6.3.4.7 Livestock production improvement ..............................................................48 6.3.4.8 Non-agriculture based skills and small scale business ................................51 6.3.4.9 Financial Analysis ...........................................................................................51 6.3.4.10 Final Cash Compensation ..............................................................................52 6.3.4.1 1 Social support measures .................................................................................53 6.4 Infrastructure Replacement and improvement ...................................................54 6.4.1 Houses and other fixed structures .................................................................54 6.4.2 Water supply ...................................................................................................54 6.5 Common Resources ...............................................................................................54 6.5.1 Common property structures ....................................................................5 5 6.5.2 Common property resources .........................................................................55 6.6 Allowances and Transitional Measures ................................................................55 7 Monitoring and Evaluation .......................................................................................56 7.1 Introduction ............................................................................................................56 7.2 Internal monitoring ................................................................................................56 7.2.1 Monitoring activities ......................................................................................56 7.2.2 Gender and ethnicity related monitoring .....................................................57 7.2.3 Monitoring of construction phase social impacts ........................................57 NTPC-S-K04-0304-000001-A Page ii of 66 Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 7.3 External monitoring ...............................................................................................58 8 Project Land Budget ..................................................................................................58 9 Implementation Schedule ..........................................................................................60 List of Tables Table 1.RAP. impacted area. LPA and number of PAHs affected by the NT2 Project ...2 Table 2 Entitlement Matrix from the Concession Agreement. Schedule 4. Part 1Clause . 15.2 ..........................................................................................................14 Table 3 Main Disclosure and Consultation Activities . .......................................................3 0 Table 4 Asset type and classification . ...................................................................................37 Table 5 PAH priorities for supplemental livelihood options (Gnommalath and Mahaxai . District) ........................................................................................................ 43 Table 6 Livelihood Activity Financial Projections . .............................................................52 Table 7 Project Land budget . ................................................................................................59 List of Figures Figure 1.Project Location and Key Infrastructure ..............................................................7 Figure 2 Project Land Area (not including transmission line) . ............................................8 Figure 3 Project Land Organizational Chart . .....................................................................24 Figure 4 The Grievance Redress Mechanism . .....................................................................25 Figure 5 Compensation flowchart for PAHs affected 4 0 % . .............................................39 Figure 6 Compensation flowchart for PAHs affected >lo% of their income . ..................40 Figure 7 Compensation flowchart for impacted common property . .................................55 NTPC-S-K04-0304-00000 1-A Page iii of 66 Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume I-General Information October 2007 LIST OF ACRONYMS ADB Asian Development Bank CA Concession Agreement CDP Construction Demobilisation Phase CIC Committee for Investment and Co-operation COD Commercial Operation Date CRS Compensation and Rehabilitation Scheme CW Construction Works DAFO District Agriculture and Forestry Office DGC District Grievance Committee DJD Districts Justice Department DWGs District Working Groups EAMP Environmental Assessment and Management Plan EDL Electricite du Laos EGAT Electricity Generating Authority of Thailand EM Ethnic Minorities EMDP Ethnic Minorities Development Plans ESL Earth Systems Lao GDP Gross Domestic Product GOL Government of Lao PDR GPARLSP Governance Reform and Livelihood Strengthening Program, Khammouane Province GRM Grievance Redress Mechanism HC Head Contractor HH Household IDA International Development Agency IFC International Finance Cooperation IF1 International Finance Institutions IMA Independent Monitoring Agency IPM Integrated Pest management KCCI Kharnmouane Chamber of Commerce and Industry LNFC Lao National Front for Construction LPA Land Parcel Area LPRP Lao People's Revolutionary Party LST Livelihood Survey Teams LWU Lao Women's Union LYO Lao Youth Union MAF Ministry of Agriculture and Forestry MU Management Unit MTDP Mekong Tourism Development Project NAFES National Agriculture and Forestry Extension Service NAFRI National Agriculture and Forest Research Institute NBCA National Biodiversity Conservation Areas NFEDC Non-Formal Education Development Centre NGO Non-government Organisation NT2 Nam Theun 2 NTFP Non-Timber Forest Products NTPC Nam Theun 2 Power Company NUL National University of Laos NTPC-S-K04-0304-000001-A Page iv of 66 Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 ODA Official Development Assistance PAFO Provincial Agricultural and Forestry Office PAH Project Affected Household PC Provincial Courts PCA Preliminary Construction Agreement PCPD Public Consultation, Participation and Disclosure PCPL Preliminary Construction Phase Lease PCR Physical and Cultural Resources PDR People's Democratic Republic PGC Project Grievance Committee PIP Project Implementation Plan POE Panel of Social and Environmental Experts PLRP Project Land Resettlement Plan PRF Poverty Reduction Fund PTO Provincial Tourism Office RAP Resettlement Action Plan RC Resettlement Committee RDC Resettlement Development Committee RMO Resettlement Management Office RMU Resettlement Management Unit KO Resettlement Office SDP Social Development Plan S-E Survey Socio-economic Survey SMEC Snowy Mountain Engineering Company SMMP Social Management and Mitigation Plan SNV Netherlands-based NGO STEA Science, Technology and Environment Agency TL Term Lease uxo Unexploded Ordnance VDC Village Development Committee VDP Village Development Plans VGC Village Grievance Committee VR Village Resettlement VRC Village Resettlement Committee VTE Vientiane VVW Village Veterinary Worker WB World Bank XBF Xe Bang Fai NTPC-S-K04-0304-000001-A Page v of 66 Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1-General Information October 2007 FOREWORD The general requirement from IFIs in relation to the RAPSis to have a comprehensive planning document submitted for no objection prior to the beginning of the PL activities. The documentation prepared to comply with this requirement was featured in Volume 4 of the SDP and subsequently accepted by IFIs at appraisal and made available to the public via website and at the NTPC public offices in Thakek and Vientiane Laos PDR. However, ADB policy requires a definitive rather than programmatic resettlement plan and so further documentation of the resettlement process was needed to satisfy ADB needs. The first draft of these additional planning documents was provided in June 2005 for review by IF1and other monitoring agencies. Since then, seven drafts have been produced reflecting the evolving implementation of the PL Programme and the useful comments and recommendations of IFIs during various missions and in between monitoring missions. Despite the absence of non objected RAPs, most of the working components that generate outputs needed for implementation of the PL programme and that typically should be described in the RAPs (what we intend to do, how to do it, when it should be done etc...) have been operational since FC or soon after FC. Components of the RAP that relate to disclosure for example were already operational since FC and communities were consulted on their assets, the expected loss and agreement was reached on asset compensation as well as interim compensation. PL office has all the files and dated records with GOL, DWG, HH and NTPC signatures to show that adequate engagement was made with the impacted communities. Thus, only the documentation of the process has been missing rather than the activities themselves. Many activities have had to evolve due to community preferences gauged by consultations. This is also reflected in the various drafts of the RAPs. This present document thus started as a detailed planning document but now serves also as an implementation record and reference document. It is therefore written mostly as a plan but it should be understood that in fact many of the "planned" activities are already well underway. It includes a general volume and five resettlement action plans (six volumes altogether) which are collectively intended to document the resettlement process which started in 2005 and is ongoing. NTPC-S-K04-0304-00000I-A Page 1of 66 Nam Theun 2 Hydroelectric Project ResettlementAction Plan Volume 1-General Information October 2007 EXECUTIVE SUMMARY The NT 2 Project has been designed and developed over a period of 10 years since 1995 with the active involvement of multi-lateral lenders, governments, NGOs and private companies. The Project's social, environmental and economic safeguards will ensure the minimization of construction and operation impacts on society and the environment and will ensure (among other things) the provision of adequate compensation for project affected households. Once in operation, the Project is expected to become by far the largest single source of foreign exchange income to Laos. To optimize the use of these revenues, the Government of Lao PDR has agreed with the World Bank to implement a Poverty Reduction Fund (PRF) that is being initially sourced from International Development Agency (IDA) funds, and then, on a later stage, from the Government's taxes, royalties and dividend revenues once the Project commences operation. As seen in table 1, the total number of impacted households in Project Land is 2,738. A total of 394 households are affected by Nam Theun 2 construction work to more than 10 percent of their annual income. The current figure is considerably lower than the previously calculated 565. This is due to recalculations in civil works undertaken in an effort to reduce impacts and households affected by the project. As can be seen below, most of the impacted HHs reside in LPAs covered by RAP 3. RAP Impacted areas (District) Land Parcel Area (LPA) HH HH Total affected affected affected HH , >lo% -40% 1 Khamkeut District 1a 10 14 24 6a, 6b 2 Nakai District (Oudoumsouk, 18, 7 172 179 Phonphanpek, Nongbouakham 20a, 20b, and Thalang) 21a, 21b, 26a, 26b 3 Gnommalath 33,34,35,36 377 142 529 38a, 38b, 38c, 38d Mahaxai Disposal Areas, Access 10 Roads 4 Road 8B, 12 37 0 1368 1,368 (Thakhek, Gnornrnalath, 51,56,57 Mahaxai, Nakai, Khamkeut) Phou Phathoung Quarry and Access 40,42 5 Transmission Lines 52,53,54,55 0 638 638 (Gnornmalath, Mahaxai, Thakhek Districts and parts of Savannakhet Province) Total 394 2344 2,738 Source: NTPC, GnommalathOfice, 2007 Table 1. RAP, impacted area, LPA and number of PAHs affected by the NT2 Project. NTPC-S-K04-0304-000001-A Page 2 of66 Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1 -General Information October 2007 The acquisition and either temporary or permanent use of land for construction and operation has resulted in impacts including disturbance, and temporary or permanent loss of land and assets, all of which has required compensationto those PAHs who may be owners and/or users of the impacted land and assets. Compensation includes asset purchase or cash compensation, direct replacement of land or assets in another location, or short and long term measures to restore impacted livelihoods or incomes. The Resettlement Action Plan (RAP) sets out the procedures and requirements for compensation for PAHs within Project Land and the actions that NTPC has taken and will continue to take to mitigate adverse effects, compensate for losses and provide development benefits to the PAHs affected by the project. NTPC-S-K04-0304-00000I-A Page 3 of 66 Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1- General Information October 2007 Introduction 1.1 The Narn Theun 2 Hydroelectric Power Project -its rationale, description and regional context 1.1.1 Rationale The Narn Theun 2 project is widely considered as an outstanding example of how the Government of the Lao PDR is working with the private sector and multilateral organizations to develop a model of sustainable development from industrial projects with strong economic, social, and environment fundamentals. With the export of 995 MW of electricity to the Electricity Generating Authority of Thailand (EGAT) at a very competitive tariff and the supply of 75 MW of electricity to Electricite du Laos (EDL). The Project is forecasted to generate average annual revenues of US$ 82 million to Laos (35% of its total revenue) in the form of taxes, royalty charges and dividends over the life of the 25 year concession. At the end of the concession, the Project will be transferred to the Government without cost and with all revenues thereafter accruing to the Government. The Project will be, by far, the largest single source of foreign exchange income to Laos, and its largest single contributor to the Gross Domestic Product (GDP) and fiscal revenues. To optimize the use of these revenues, the World Bank, other multilateral institutions and the Lao Government are working together to establish and ensure that the Project's revenues will effectively serve the long-term development of the country. Thus, the Government of Lao PDR has agreed with the World Bank to implement a Poverty Reduction Fund that is being, initially sourced from International Development Agency (IDA) funds, and then from the Government's taxes, royalties and dividend revenues once the Project commences operation. Special administrative units have been established to deal with both the implementation of the Project and the effective management and allocation of the financial resources gained from the Project. 1.1.2 Description The Narn Theun 2 Project (NT2) involves the development of a hydroelectric scheme in the three provinces of Khammouane, Bolikharnxay and Savannakhet Provinces in Central Laos. It requires constructing a dam on the Narn Theun River, a tributary of the Mekong River, 250 km east of Vientiane. This will create a 450 square kilometre reservoir on the Nakai Plateau which will necessitate the relocation and rehabilitation of livelihoods of more than 1,000households. Water from the Narn Theun reservoir will be diverted by an intake structure, located about 40 kilometres upstream from the dam into a diversion tunnel excavated in the Phu Ark escarpment. The water in this tunnel will then drop approximately 350 meters before entering the turbines in a powerhouse located at the foot of the escarpment. The water discharged from the powerhouse will then flow to another river system, the Xe Bang Fai (XBF), which also flows into the Mekong River, through a purpose-built downstream channel. The additional water in the XBF will potentially impact paddy land, fisheries, riverside gardens and other livelihood activities. Restoration of pre project incomes in these so-called downstream areas are part of another programme called the Downstream Livelihood Restoration project. Transmission lines to the Thai border (via Savannaket) and to Thakhek Province town, the construction or upgrade of some 150 kilometres of roads, quarries and soil deposit sites and other NT2 Project structures shall be built. NT2 is owned by the Narn Theun 2 Power Company Limited (NTPC), a limited company registered under the laws of the Lao PDR, in which the GOL has a 25% equity stake. NTPC and the GOL are NTPC-S-K04-0304-000001-A Page 4 of 66 Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1 - General Information October 2007 committed to meeting the World Bank (WB)'s and Asian Development Bank (ADB)'s economic, social and environmental guidelines as outlined in the CA Schedule 11 Clause 48.1 which includes amongst others: Involuntary Resettlement( WB, OP 4.12), Cultural Property (WB, OP 4.11) Indigenous People (WB, OD 4.20); Policy on Indigenous Peoples (ADB; F3/BP and F3/OP), Policy on Involuntary Resettlement (ADB; F2/BP and F2lOP) and Policy on Gender and Development (ADB; C2IBP and C2/OP) Operations Manual Sections Fl/BP and Fl/OP, Environmental Considerations in ADB Operations 1.1.3 Regional context The NT2 Project area is in central Lao PDR and straddles the provinces of Bolikhamxay, Khammouane and Savannakhet as seen in figure 1. The region is characterized by intensive rural development along the lowland flood-plains of the Mekong River and by sparsely populated mountains to the north and northwest. Nine districts are affected by NT2 Project activities, which are Khamkeut, Nakai, Gnommalat, Mahaxai, Xe Bangfai, Thakhek, Nong Bok, Xaibouly and Khanthabouly, with most activities taking place in the districts of Nakai, Gnommalath and Mahaxai. The climate of the area is influenced by the southwest monsoon (wet season) which normally affects the area fiom May to October; and by the northwest monsoon (dry season) lasting from November until April. Average annual rainfall over the Plateau is approximately 2,600 mm per year and at the dam site approximately 2,800 mm per year. Rainfall distribution is markedly seasonal with over 88% falling between April and September during the southwest monsoon, and only 12% falling between October and March during the northwest monsoon. This causes substantially high flows in the Nam Theun in the months of July and August (SMEC March 2003). Land use is dominated by agriculture, predominantly rice (paddy) cultivation in the alluvial lowlands, whilst forestry and upland agriculture (swidden or 'slash-and-bum') agriculture occur on the Nakai Plateau. There are two National Biodiversity Conservation Areas (NBCA), the Phou Hin Poun and the Nakai - Nam Theun nearby, which are visited by an increasing number of tourists, although still on a small-scale. In 1999, the total population in Khammouane Province was estimated to be 331,044, with a density of 20.3 persons/km2,which is close to the average Lao PDR population density of 22.1 p/km2.In terms of ethnicity, the region is populated by a wide range of ethnic groups, which could be divided into four main ethno-linguistic families: Tai-Lao, representing the majority population, and three ethnic minority groupings: Austro-Asiatic, Meo-Yao and Tibeto-Burman. The main groups in the lowland areas are Tai-Lao majority and some Austro-Asiatic groups. In the mountainous areas, numerous Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 (NTFPs). In the context of the planned resettlement program, sustainable food production is a critical component to improved livelihood and well-being as well as to alleviate poverty. The Downstream Areas along the XBF are typical of many lowland areas in Lao PDR with its dependency on paddy cultivation, fishing and some degree of non-agricultural income. Over 85% of the population derives some of its income from agriculture. Irrigated paddy and rain-fed paddy yields in the lowlands are more than double that of the Nakai Plateau although frequent flooding reduces average yields substantially quite frequently, especially in the lower DS areas.. Dry-season riverbank gardens supply most of the vegetables for local consumption. Riverine forests and wetlands provide an additional but limited source of edible plants, aquatic animals, NTFPs and herbal medicines. The reliance on the XBF as a source of food is a central aspect of the lowland or "river-based" livelihoods. The seasonal changes in river flow and remaining fish migration patterns determines how communities harvest and manage the natural resources of the river Although there are few full-time fishermen along the XBF, many riparian households, if not most, fish in the river at different times of the year. Fish is the main source of protein and most fish are consumed locally with only small surplus catches reaching local markets. 1.2 NT2 Project affected areas The NT2 project affected areas use to be part of the Ho Chi Minh Trail and was heavily bombed during the Indo-China War therefore UXO clearance is required prior to construction. The construction and operation of NT2 will result in a range of impacts to the biophysical, socio-economic and cultural environments of the NT2 Project Area. The project is divided into three main areas which have been the subject of resettlement andlor compensation and livelihood restoration: 1. The Reservoir Area on the Nakai Plateau All of these affected households are entitled to relocation to a preferred agreed location, new housing, physical and community infrastructure. In addition, an extensive range of livelihood restoration program activities will be offered. 2. The NT2 Project (construction) Lands The acquisition of Project Land for the construction of NT2 Project components will result in impacts ranging from disturbance, temporary and permanent land and asset acquisition, and will require compensation to Project Affected Households (PAH) and restoration of their livelihoods. 3. Downstream (of the Power Station) and the XBF Communities downstream of the power station, along the XBF, and, to a much lesser Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1-General Information October 2007 38 which have PAH impacts, and 28 which have no impacts on PAH. This was assessed by the baseline studies. The acquisition and either temporary or permanent use of land for construction and operation has resulted in impacts including disturbance and temporary or permanent loss of land and assets, all of which have required compensation to those PAHs who may be owners andlor users of the impacted land and assets. Compensation includes asset purchase or cash compensation, direct replacement of land or assets in another location, or restoration of impacted livelihood. A series of plans, which includes land acquisition and compensation agreements with PAHs has been developed for review by the NTPC and the GOL and submission to the IFIs, after which formal approval and payment of compensation or implementation of livelihood rehabilitation programs will be undertaken. Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1-General Information October 2007 Nam Theun 2 Hydroelectric Project ResettlementAction Plan Volume 1-General Information October 2007 1.3 Efforts to minimize displacements and resettlement Efforts have been made by the HC and CD of NTPC to minimize Nam Theun 2 Project land requirements by modifications in method of construction and construction design. Thus, the total number of impacted households has been minimized. Updates and modifications on PAH numbers, compensation payments and livelihood restoration program implementation will be presented in follow up plans and monthly reports as required. 1.4 Purpose and Objectives of the Resettlement Action Plan The RAP has been developed under the following guiding assumptions and principles: I. Funding is assured with all partners agreeing that the RAP is to be fully financed by the NT2 Project. 2. Resettlement planning is to be integrated with the general NT2 Project design from the earliest stages of NT2 Project preparation. 3. The GOL will develop and adopt the appropriate policies to ensure proper and just resettlement, including the development of an applicable Resettlement Policy for the NT2 Project. 4. Nakai Resettled people living standards and income earning capacity will improve to at least the national poverty level, and PAHs will be provided with adequate support during the transition period; resettlement is to be avoided or minimized wherever feasible. 5. Identified gender concerns and specific women's needs and perspectives are to be considered in all components, strategies and planned activities; women and men will have equal opportunity to participate in decision-making, training and the NT2 Project benefits. 6. People to be resettled or directly affected will play an active role in the design, planning, implementation and monitoring of the RAP. 7. Traditional organizational structures, religious beliefs and resource use will be taken into account during resettlement planning and implementation; appropriate consultation and participatory methods are to be used, utilizing local knowledge in developing production systems that suit the people's needs and the environment and which avoid dependency on NT2 Project or government agencies. 8. The planning, implementation and compensation processes will be open and transparent but follow prescriptive IF1guidelines. Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1-General Information October 2007 2 NT2 Project impact 2.1 Socio-economic Survey A census and inventory of assets were compiled and additional studies quantified the net returns from income streams and established replacement values for land and other assets. This information has been used by resettlement planners to enhance their understanding of household income and of how the income can be restored after resettlement is complete. It also provides a baseline for the identification of monitoring and evaluation indicators that will help to assess the success of livelihood restoration and other sustainable development programs. The above information can be found in the SDP Volume 4. An up-to-date data set is being maintained throughout the project period for monitoring and implementation. 2.1.1 Ethnic groups Estimates of the ethnic distribution of significantly impacted households in all Project Land (of which 93% fall into LPA 33-38) are as follows: Makong: 77.2% Lao Loum: 22.3% Hmong: 0.5% Thus, as indicated above, thegreat majority of NT2 Project affected households belong to the ethnic minority groups of the Brou or Makong, an Austro-Asiatic / Mon-Khmer ethno-linguistic group (Chazke 1999, Schlesinger 2003). They exhibit a considerable degree of adaptation and assimilation in relation to the dominant lowland (Lao) culture but, nevertheless, have retained some minority characteristics, including less integration into market place economics and some degree of ethnic language and self- identity. The Brou's subsistence-based economy relies on imgated and rain-fed paddy cultivation, with only limited surplus for trading and barter (cash crops, livestock, fish). They have private ownership of paddy and riverside gardens, while grazing areas and forests are managed communally. Traditional institutions for the most part have merged with formal political institutions. Brou language is spoken at home and in villages, but today in many cases Brou is only praticed among the elders. The NT2 Project assists these potentially vulnerable PAHs by providing an ethnic specialist to bridge any language or cultural bamers and this individual aids in communication between the PAHs and NT2. 2.1.2 Gender Women, whether ethnic minority or Lao Loum women, traditionally play a significant role in agriculture and thus hold a significant status within the household economy. Amongst the Lao Loum, land was traditionally inherited along matrilineal lines. There are a number of affected households with a single head, male or female, which are expected to be . . . . . .. . .... .. ..... -. ..-- - . . . . .. . . a Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1 -General Information October 2007 Young women and children selling non-timberforest products(Mahaxai District) Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1- General Information October 2007 3 Legal Framework of NT2 Compensation and Entitlements 3.1 Introduction Involuntary resettlement is not new to the Lao people. Centuries of human and natural disasters have seen villages and groups of villages forced to relocate to survive. What is relatively new is the need for people to relocate in order to make way for development of projects considered to be in the national interest, such as hydroelectric schemes. Due in part to the size of the NT2 Project and previous experience of other hydropower schemes, a number of legislations have been introduced to deal specifically with the NT2 Project. This legislation guarantee rights to those people who are to be resettled as a result of the NT2 Project including their rights to land and forest use. Furthermore, the Lao National Assembly has approved the agreement under which the concession for the NT2 Project is granted to NTPC detailing, inter alia, the obligations of both NTPC and the GOL to the resettlers. The Social Development Plan (Vol. 1, Chapter 3, Appendix C and D) provides details of the legal framework. 3.2 Legal framework In the case of Project Land impacts, the NT 2 Project's Concession Agreement (revisions of March 2005), Schedule 4 Part 1is the relevant policy document. In the 'Nam Theun 2 Resettlement Policy' and the 'Concession Agreement', the NTPC and the GOL have developed compensation and livelihood restoration and improvement guidelines. These legal and policy documents were based on available GOL legislation and policies as well as on the World Bank safeguard policies. More recently, the Asian Development Bank (ADB) safeguard polices have become relevant, as have the draft 'National Policy and Guidelines on Resettlement'. The RAPShave been drafted and will be implemented in accordance with the revised 'Concession Agreement', World Bank and ADB safeguard policies, and the NT2 Resettlement Policy. 3.3 The Concession Agreement The specific obligations of NTPC and the GOL to resettle PAHs are set out under the Concession Agreement ("CA") that was signed on 3 October 2002 between NTPC and the GOL, represented by the Committee for Investment and Co-operation and acting for and on behalf of the Lao PDR. This Concession Agreement was amended in March 2005. Under this CA, the GOL grants NTPC the right to implement the Project on a build, own, operate and transfer basis for a period of 25 years (the "Concession Period") following the occurrence of the Commercial Operations Date, subject to any extensions for Force Majeure. 3.3.1 Compensation and Resettlement Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1-General Information October 2007 specifies that the monitoring of the resettlementprocess will be performed both internally by the Company and the GOL and also by independentparties. Specific compensation and livelihood restoration entitlements for Project Land impacts are presented in Schedule 4, Part 1,Clause 13 'Resettlement Activities in Project Land Areas', and in the EntitlementMatrix, clause 15.2. 3.4 Eligibility All those peoples or communities who have land, assets or seek a livelihood from any Project Land area at the time that the Baseline Study Phase 2 is undertaken,are considered as eligible for compensation and rehabilitation. 3.4.1 PAH Project Affected Households: - Project Affected Households (PAHs) are, according to the Concession Agreement, schedule4, Part 1, Section 1.2, ".. the Resettlers and persons residing on or in the vicinity of Project Land, who on account of the execution of the Project, had or would have their: (i) standard of living adversely affected; or (ii) right, title, or interest in any house, land (includingpremises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed, temporarily or permanently; or (iii) access to productive assets adversely affected, temporarily or permanently; or (iv) business, occupation, work or place of residence or habitat adversely affected, temporarily or permanently" By definition, it is these PAH who are entitled to any applicable compensationand rehabilitation. However, any particular land or assets may be related to more than one PAH. For example, when the land is owned by one PAH but used to gain a livelihood by another different PAH (who is usually paying some type of rent to the owner PAH) then there are two eligible PAHs for this one asset. Thus, eligibility is based on: (a) ownership; and (b) use. Ownership may have various forms, from formal to informal.There are no formal "land titles" as such yet issued for land or assets in the Project Area. However, ownership is officially recognized in the Lao PDR by the registration of land and assets for the purposes of tax. In the case where there are no tax registration certificates, customary use and ownership will be recognized, and this is usually well known in each village. However, in the case that there is a dispute as to the owner then it is up to the Village Grievance Committee, in the first instance, to decide or to resolve any issues relating to customary and traditional ownership and use right over a particular land or asset. There may be cases where land or assets have recently been purchased for the specific intent of being applicable for compensation from the NT2 Project. Such cases are generally known by the community and reported to the NT2 Project. They will go before the Village or District Grievance committee for "......-., ~ r l ; a a r l ; r ~ t ; n nh n r ~ ,the nnrlr r\rrmnroo+n nnt mrr;atnmrl;* thn hnanl;*n . ~ ~ ---..;--A ..-.Aa- +LaP A Nam Theun 2 Hvdroelecttic Proiect Resettlement Action Plan Volume 1- General Information October 2007 Table 2. EntitlementMatrix from the ConcessionAgreement, Schedule 4, Part 1 Clause 15.2 TYPE OF L W ENTITLEDHE ( [CONaEW$ATKYNA mREHAEEFFATIONIb¶usmws 1: Permanentloss of land 1 1.1:Permanent ( Documented owners ( Project Affected Persons (PAHs) will be entitled to compensation in cash or I 1 lossof residential (validated by village I I the provision of replacement land, as below: I land (home lot) Or non- (i) If the PAH wants replacement house plot land then they will be provided renting occupants with replacement land of atequal size and amenity to the lost land identified during the in a location acceptable to PAH. In this case no cash will be paid. The Baseline Study) land will be cleared and levelled at the expense of the Company. (ii) Such replacement land will be provided with access to a road, of at least equal amenity to the current access. If the current~lostland is also supporting a dwelling which has access to electricity, then the PAH will also be provided with access to electricity at the replacement land. (iii) Such replacement land will be provided with full land title in the name of both husband and wife. (iv) If the owner wants cash compensation then the Company will pay for the land at its replacement value as estimated by the local market value 01 the year in which compensation is paid in a similar situation of a non- affected village in the same District. (v) If the land is partially affected and the remaining landholding is sufficient to re-establish houses and structures, PAHs may opt to receive cash compensation for affected portion of land and structures. (vi) If the land is partially affected and the remaining landholding is not sufficient to rebuild affected houses and structures, the Company will acquire the entire landholding. (vii)Those receiving cash for land must undergo financial management training. (viii) Any registration and land transfer fees will be paid by the Company on behalf of the PAHs. 1.2: Permanent Documented owners PAHs will be entitled to compensation in cash or the provision of loss of business or occupants identified replacement land, as below: land during Baseline Study (i) If the PAH wants replacement business land then they will be provided with replacement land of at least equal size and amenity in a location with comparable commercial advantage. In this case no cash will be paid. (ii) Such replacement land will be provided with access to a road, of at least equal amenity to the current access. The PAH will also be provided with access to electricity (brought to the land lot) if they previously had access to electricity. Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1- General Information October 2007 ENTITLEDHH COMPENSATIONAND REHABILiTATIONMEASURES Documented owners Significantly affected farmers, i.e. who lose 10% or more of their productive with or without I (cash 1 and imputed income generating) land assets, are entitled to replacement certificate at the time land and income rehabilitation measures, as follows: of Baseline Study. (i) Land of the same type, and of a total annual productivity at least equal to the lost (average) annual productivity of the lost land; (ii) Production assistance for at least 2 years to ensure that the replacement land actually fully reaches the production targets. Production assistance to consist of fertilizer, seed, extension assistance; 1 (iii) Where imgated land is lost the replacement land must be imgated; (iv) Where rainfed land is lost, the replacement land may be rainfed or imgated; and (v) Such replacement land will be provided with full land title in the name of both husband and wife. Where no replacement land is available, assistance to develop alternative forms of livelihood activity such as non-land-based opporlunities which will generate at least as much 'income' as the lost land generated including, for example, training and access to credit. In cases where a significantly affected farmer's, i.e. who lose 10%or more of their productive (cash and imputed income generating) land assets, is entitled to replacement land. and income rehabilitation measures, but request a lump sum cash payout instead, then this case will be considered by the District , Grievance Committee, whose decision will partly depend on: (a) the PAH's ability to handle cash payment; and (b) the PAH's plan of what to do with the cash payment. The cash payment in this case will be based on: (c) the 'market value' of that lost land, as assessed at the actual time of land acquisition; or (d) the cash equivalent of seven (7) years' gross production from the lost land; or (e) the actual replacement cost of the land as assessed at the actual time of payment of compensation. In cases where less than 10% of a PAH's productive (cash and imputed income generating) land assets are impacted then cash compensation is applicable. The amount payable will be based on: (a) the 'market value' of that lost land, as assessed at the actual time of land acquisition; or I (b) the cash equivalent of seven (7) yean' gmss production from the lost . ~ Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1 - General Information October 2007 TYPE0PI;OIS;B ENTFFLUgBB 2.1 : Temporary Owners or non-renting Extreme care shall be taken by contractors to avoid damaging properties impacts during occupants whose land Where damages do occur, the Company shall pay compensation construction (but not structures) is immediately to PAHs. Damaged assets will be restored to its former affected by condition. construction activities Any impacts on the usage of the land, or income or livelihood derived from the land that is impacted by the temporary loss of land will be compensated to the PAII, up to the value, or according to the utility, of that loss. In addition, if crops or trees are lost, then a further cash compensation for loss of crops and trees at market values and compensation for loss of net income from subsequent crops that cannot be planted for the duration of the lease. I If the disruption continues for more than one year, PAHs have an option to (i) continue the temporary use arrangements or (ii) sell the affected land to the Company at full replacement cost at current market value. I I ( Cash compensation for any damage to structures at replacement cost at 1 current market value and for repairing structures. 3: Loss of house and other fixed structures 3.1: Permanent Owners/occupiers The same standard as for Resettlers for housing and other structures applies, loss of houses identified during as follows: and other Baseline Study the labour cost associated with the dismantling of existing houses and other .I structures I structures; (rice I stores, toilets, transportation of dismantled housing and other materials to new house lot kitchens, etc.) (which are not however considered as materials to make up the minimum house standard) or, if the PAH requests, transportation of the non-dismantled house or transportation of materials and reconstruction of the original house; the provision of new materials for construction of new house and other structures; the house materials are to be either: (a) the minimum standard of wood walls and floors, tin roof and cement house footings; or (b) to the standard of materials as used in the current/lost houses, I I ( depending on the choice of the PAH; construction of new house and other structures or equivalent labour cost paid; house design to be approved by the village and the PAH, but to be in general accordance with the design for the Resettlers; minimum housing area not less than current house area or 14m1 of construction area per person of - whichever is greater, and depending on the choice of the PAH; I. households with 7 or more persons containing two families have the option to . -~~. A . L Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1 -General Information October 2007 TYPEOFLQSS ENTFLZEDHH COMPENSATIONAND REHABiLlTATIONMeASURES provision of domestic water supply to at least the standard of current water supply; for partially affected houses/structures, compensation will be paid equivalent I I I to a) the replacement value of the affected portion based on current market I value, or b) the costs of repairing the property to its original or better condition. 3.2: Permanent Owners/occupiers Compensation at full replacement cost sufficient for PAHs to build a new 1loss of shops, ( identifiedduring the I structure of equivalent size and standard, with equivalent amenities, in a I other businesses Baseline Study. location with comparable commercial advantage. Compensation for lost income during the transition period as described below. 4: Loss of crops, trees, other productiveassets 4.1: Fruit trees Owner or person with Compensation for fruit trees will be based on the type, age and productivity customary right to and the cost of production and rearing of trees. The following compensation I Iharvest (in cases ( will be payable: where impact is only a) a lump-sum amount to cover the maintenance and rearing of trees. on crop production and not related to the b) compensation equivalent to the annual productive value, as should be land) determined for the next seven (7) years. Two months notice will be given to PAHs to harvest crops before construction commences. Two months notice to PAHs to harvest crops before construction commences. Mass of fruit production depends on tree age as per IOL. 4.2: Timber trees Owner or person with Compensation will be the NPV of the felled tree. I I customary usage / I rights' 4.3: Fish ponds Owner or person with Either customary usage rights (a) Replacement fish pond of equal size andlor productivity and amenity, 1 plus assistance to stock and feed fish for 6 months; or (b) lump sum cash payment equivalent to 7 years lost productivity of the fish pond. Two months notice to PAHs to collect fish. 4.4 Garden and Owner of the crops Compensation for any crop unharvested at the time of relocation, or Project field crops Impact, based on gross harvest income. Standing crops will be compensated at full replacement cost regardless of maturity of crops. Additional compensation for one year's agricultural production or more until replacement land is productive. I I Two months notice (before the Projects impacts is expected to be felt) will be . . .... . I Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1- General Information October 2007 5.1 Wage Wage labourers whose Cash compensation equivalent to the greater of their existing wage and labourers in jobs have been lost or minimum wage for up to six months, depending on the duration of relocating interrupted by, or as a interruption, paid on a monthly basis. businesses or in result of, the Project businesses temporarily 'affected during construction (such as reduced 1 5.2 Ag"ultural Wage labourers whose Cash compensation equivalent to the greater of their existing wage and 1wage labourers jobs have been lost or minimum wage for up to six months, depending on the duration of - 6: Loss of common property structures 6.1:Electricity Community Relocate or place underground to maintain service. and telecom lines 6.2: Road and Community Full restoration, replacement by alternative route, or the new resettlement tracks area fully serviced by road of at least equivalent standard and amenity. 6.3: Irrigation Community Full restoration, replacement, or the new resettlement area fully serviced by -channels 1imgation system and channel of at least equivalent standard and amenity. 6.4: Water source Community Full restoration, replacement by alternative water source, or the new 1 I 1 resettlement area fully serviced by road of at least equivalent standard and (6.5 Schools, Community Full restoration to original or better condition, or replacement if necessary at 1clinics, other locations identified in consultation with affected communities and relevant L i government authorities at no cost to the community. buildings, bridges 16.6 Town Oudomsouk town ( The Company will undertake community and town planning and prepare and implement a design for a reorganized town, in consultation with local authorities and residents, to restore the impacted section of the town to its L 1pre-Project conditions or better. 7: Loss of common property resources 7.1: Loss of Villagers who have In case where the loss of the NTFP gathering area represents more than 10 % NTFP gathering had customary rights of a village's NTFP gathering area, then a replacement NTFP area will be areas to the common identified and allocated. prope* In case where alternative NTFP gathering area cannot be identified, then, depending on the preference of the village, the Company will either: I I I (a) provide funds and TA for the domestication of NTFPs; or I Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume I - General Information October 2007 TYPEOFLQSS ENTFFLEDHH COMPENSATIONAND REHAB&ITATION MEASURES should be used collectively for income restoration measures andlor new infrastructure. 7.2: Loss of Villagers who have In cases where the loss of the firewood gathering area represents more than firewood and had customary rights 10 % of a village's firewood gathering area, then a replacement firewood area 1 wood I product Ito the common ( will be identified and allocated. gathering areas propew resource 1 In cases where alternative firewood gathering areas cannot be identified, then, depending on the preference of the village the Company will provide funds and TA for the establishment of firewood plots over a 2 year implementation period. 1 7.3 Loss of fish 1 Either: and aquatic (a) cash compensation, based on the value of the annual loss of catch x 5 products years; or I I 1 (b) provision of replacement fish or protein production systems; or 1 I I 1 (c) provision of alternative livelihood enterprises which produce net income equivalent to that lost. 8: Allowances and TransitionalMeasures 8.1 Disturbance Significantly impacted USD 15 per person. allowance PAHs (those whose land or income is impacted by more than 10%) and PAHs relocating 8.2 Materials All relocating PAHs In kind assistance with vehicles and labourers. 1 transport I with structures / Preference to be given to local transportation and labourers, particularly allowance All relocating tenants PAHs. 8.3 Rental Tenants in rental Six months rent at prevailing market rate. allowance properties adversely Any penalties associated with ending lease early paid by government affected by Project Land. Landlords whose Six months rent allowance will be provided, to allow for rebuilding and rental property is finding tenants. adversely affected by Payment of penalties for ending lease contract early. Proiect Land. ( 8.4 Business I Owners of small I An allowance equal to six months income (as assessed for each business transition businesses and shops during the Socio-Economic Survey referred to in clause 5.2). , allowance identified in the Baseline Study 8.5: Transitional All relocating PAHs Rice and protein will be provided as required to Project Affected Persons to Food Assistance and PAHs severely the extent that their rice and protein production and intake has been impacted Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 TYPEOFLOSS EFRlTLEDBB COMl'ENSATION AND REWILfTAfiONMEASURES successful. 8.6: TransitionalIAll relocating PAHs I Cash will be provided as required to Project Affected Persons to the extent lncome and PAHs severely that their income has been impacted by the Project and such income not yet Assistance I affected by loss of restored. This will be assessed by the Village Development!Resettlement productive (income I Committees, and confirmed by the District social welfare office, and generating) assets who reviewed from time to time by monitors. The income assistance shall be are identified in the provided by the Company on a quarterly basis, or more regularly, if required. Implementation Plan, and whose livelihood restoration program I1 has not yet been fully implemented or I successful. I 8.7 Special All relocating PAHs 300,000 kip for each family below the poverty line. assistance and PAHs (equivalent to one months salary for the head of household which is assumed significantly impacted to be the time taken for moving which a family with none or little assets or (those whose land or savings and may be required to pay out of pocket expenses) income is impacted by more than 10%)and who are identified I during the Baseline Survey as being below the Poverty Line. PAHs without 300,000 kip for each family without sufficient labour resources to relocate. as 1adequate labour to 1 decided by the Village Development/ResettlementCommittee. assist with Entitlement is additive, i.e. poor families without sufficient labour receives resettlement activities 600,000 kip. PAHs whose Food security (rice and protein supplement) as required until restoration of livelihood restoration livelihood. program has not yet Regular internal monitoring will be essential and prompt delivery of food been fully security as soon as it is needed. A special fund will be available to enable Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1-General Information October 2007 The Nam Theun 2 Resettlement Policy outlines the basic principles and measures governing the resettlement of agricultural and forestry production areas and compensation to the population of the Nam Theun 2 Project zones, with the view of upgrading or ensuring sustainable livelihoods. It provides for the participation of the population in the consultation, planning and design process of their new settlement and production areas. It also provides for the application of special measures towards vulnerable groups such as ethnic minorities, women, the disabled, the elderly and the youth. All activities for vulnerable groups are aimed to assist as needed and foster self-reliance. Development of a resettlement policy specific to NT2 has taken place in parallel with the preparation of the draft national policy. Its process followed a number of steps which are documented in detail in the SDP Vol. 4, Chapter 5. 3.5.2 Resettlement Committee Regulations While the NT2 ResettlementPolicy and more recently the Concession Agreement (CA) of 2002 is the overarching framework describing the resettlement principles, the above documents stated that more specific regulations will be issued dealing with individual procedures for the successful implementation of the policy. Thus, as detailed planning and implementation proceeded, regulations were passed by the Resettlement Committee at the recommendation of the Resettlement Management Unit and NTPC. These regulations are executed by the Provincial Governor (also Chairman of RC) and have the authority of a Provincial Decree. These additional regulations were later added into the Concession Agreement and any future procedures will be added accordingly. 3.5.3 World Bank and Asian ~ e v e l o ~ m eBank Operational Procedures n t The NT2 Resettlement Policy details guiding objectives, principles and provisions under which resettlement is carried out. It follows the principles of the three applicable World Bank Policies: Operational Policy 4.12: Involuntary Resettlement. Operational Directive4.20: Indigenous People. Operational Policy 4.11:Cultural Property. More recently, after the Asian Development Bank (ADB) has also become a partner in the NT2 Project, the ADB safeguards policies also became relevant to the social and resettlement program of the NT2 Project, including: ADB Policy On Involuntary Resettlement( 1995)and Operations Manual( OM ) F2 ADB Policy on Indigenous Peoples( 1998)and OM F3 ADB Policy on Gender and Development ( 1998)and OM C2 Other NT2 applicable IF1 Guidelines are shown in CA schedule 11 Clause 48.1. NTPC and GOL are fully committed to comply with these World Bank and Asian Development Bank requirements and Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 4 InstitutionalArrangement The institutional and organizational framework for the Nam Theun 2 Project, and the responsibilities of the parties involved are presented in detail in the Social Development Plan (Chapter 6 of Volume 1). The present chapter presents a detailed summary relating specifically to the Project Land program only. 4.1 Overall Organizationand Coordinationof Responsibilities In response to the Projects resettlement component, GOL has established specific resettlement organizational units. Collectively, these organizations, in cooperation with NTPC, form the GOL agencies responsible for implementing the NT2 Project's Social Development Plan (SDP) and RAPs. NTPC has, in turn, established a Social and Environment Division to manage and implement NTPC's responsibilities detailed in the SDP and the RAPs. Detailed descriptions of these institutions, including their responsibilities and staffing, are presented in detail in the SDP (Vol. 4, Chapter 8) and various annual versions of the AIP provided to Interested Parties in June of every year. The relationship and coordination between the GOL and the NTCP, first outlined in the CA of 3110102, has been refined. Within this overall framework and through their parallel agencies, the GOL and the NTPC are jointly responsible for the planning, implementation and outcomes of the social and resettlement program of the NT2 Project. However, GOL or NTPC will take specific, or primary responsibility for certain program components, of have equally shared responsibilities for other components, as summarized below: 1. NTPC and GOL sharejoint responsibility for the conduct of surveys, whereas NTPC takes the lead in data analysis; 2. NTPC has primary responsibility for infrastructure design and construction, with GOL support as required; 3. GOL has primary responsibility for consultations with villagers and community development, with NTPC support as required; 4. NTPC has primary responsibility for budget preparation, disbursements and acquittals; 5. NTPC and GOL sharejoint responsibility for program scheduling and monitoring; 6. GOL and NTPC share joint responsibility for development and support to livelihood restoration programs such as agriculture, livestock, forestry and fisheries; and 7. GOL has primary responsibility for disbursement of compensation to PAH, with NTPC support as required. 8. GOL has primary responsibility for grievance processes The following mechanisms were put in place to ensure close coordination and cooperation between the GnT and NTPC. Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume I -General Information October 2007 4.2 GOL Resettlement Organizations Until recently, no formal administrative structure existed in Lao PDR to deal with involuntary resettlement caused by large development projects. For a small number of cases, which involved involuntary resettlement, ad hoc institutional arrangements had been made at the project level for resettlement implementation. The 2003 'Decree on Involuntary Resettlement and Compensation' designates the Water Resource Energy Agency (WREA) formerly the Science, Technology and Environment Agency (STEA) as the regulatory agency charged with the responsibility for policy oversight. Through this decree, WREA is authorised to: 1. Disseminate information, 2. review, evaluate and approve or otherwise Resettlement Plans, 3. review monitoring reports; and 4. provide technical guidelines to Implementing Agencies. In the case of the Nam Theun 2 Project, the Government has established specific units (or committees) to work with the NTPC to plan and implement the Project, including: the Resettlement Committee (RC); the Resettlement Management Unit (RMU); and the District (Resettlement and Compensation) Working Groups (DWG). These units or committees are staffed by current GOL staff that are seconded to work either full time or part time for the Nam Theun 2 Project. Further details on roles, functions, responsibility and staffing of the Resettlement Committee, the Resettlement Management Unit and the District Resettlement Working Groups can be accessed from the SDP (Vol4, Chapter 8). 4.3 NTPC's ResettlementOrganization The NTPC, in close cooperation with the GOL's RC and RMU, has established a number of organizational units be specifically responsible for all social and resettlement activities of the NTPC, namely: 1. The Resettlement Office (Nakai) 2. Project Lands Office (Gnommalath) 3. Downstream Program Office (Thakek) The NTPC's Project Land Office will be responsible for the following within PLjurisdiction: 1. providing sufficient human resources to ensure the objectives and targets of the SDP and RAPSare met by the engagement of national and international experts; 2. providing prompt and adequate compensation to the resettlers and the other PAH in Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1 -General Information October 2007 Figure 3 shows the recently updated organizationalchart for the Project Land program. NarnTheun 2 Power Co., Ltd. Project Land U.pp*lp L D8bb.S. FORP. L Lk.I(OSk U... lockMcer C o ~ u t . n l Cmmunk.lbn Omar Figure 3. Project Land Organizational Chart 4.4 Grievance Committee Regardless of how well conceived, planned and executed the resettlement program may be, individual or village complaints will occur. To ensure that the basic rights and interests of resettlers are protected, concerns adequately addressed and entitlements delivered, a grievance procedure has been designed for the NT2 Project. The procedure is presented in figure4. Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1 -General Information October 2007 I Appeal to the VillageWevance Committeeof Eldm . Appeal to Project GrievanceCommittee and Court at the District kvel advice+ Figure 4. The Grievance RedressMechanism Capacity building and training will occur to provide the agencies with the knowledge and capacity to properly deal with PAH grievances. The grievance procedure, and more particularly the agencies involved, have recently been reviewed in order to avoid lengthy procedures for addressing grievances. At present there are three agencies involved in reviewing and adjudicating on grievances brought forward by villagers, namely: 1. Village Grievance Committee, composed of an equal number of women and men elders and nther identified individllals frnm the cnmrn~lnitv which will he strenothen~dhv the NT7 Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 This Grievance Redress Mechanism (GRM) reviews and adjudicates upon grievances submitted by any persons, firstly at the village, then the District and finally the Provincial level (if the earlier step could not resolve the grievance) or RMU level. The GOLs RMU, the DWGs and the NTPC can be called in occasionally as technical specialists or witnesses to any grievance hearing. 4.5 Other Agencies and Organizations 4.5.1 Provincial Authorities Khammouane, Savannakhet, and Bolikharnxay Provinces are represented on Resettlement Committee and in the Resettlement Management Unit. Many aspects of the resettlement implementation require the approval and support of the provincial governments including all land allocation activities for resettlement purposes. Similarly all changes in government service facilities, such as setting up new clinics and schools in the villages also require approval by different departments of the provincial governments. Allocating rights to existing forests to villages requires permission from the provincial government. These approvals will need to be either granted prior to construction commencing, as a fast track approval system or as authority delegated to the RMU, so that delays do not hamper Project implementation. It is important, therefore, that during the resettlement planning and implementation, the RMU work closely with concerned provincial governments and departments to keep them fully informed on progress. The Provincial Office of technical line ministries will also play a crucial role in the Project Land programs, especially the Provincial Office of Agricultufe and Forestry, who will, through the RMU provide technical support and coordination in the rehabilitation of livelihood of those whose productive lands are impacted by the NT 2 Project. 4.5.2 Lao Women's Union (LWU) The LWU will play an important role in the implementation of the resettlement component of the Project. Representatives of provincial LWU and district level LWU will be staff members of the RMU, and the DWG. In other words, they will be an integral part of the management team that carries out resettlement activities for the Project. However, the LWU should not be viewed as the only means of addressing gender concerns. As requested by the LWU and the participants of the Gender Workshop of December 2004, women technicians and leaders of relevant district and provincial departments will be involved in all aspects of NTPC work. 4.5.3 Consultants and Contractors M o n x r n f the tprhniral artiviti~rrnnr~minor~lnratinninfractnirh~r~and livelihnnd mn he ramed niit Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1- General Information October 2007 promote women as role models for professional activities. Some examples of the types of contracts are found below: 1. Studies and surveys such as baseline studies and soil surveys within the identified agricultural land. Most socio-economic and other surveys will be undertaken jointly by NTPC and GOL, although some activities may be sub-contractedto GOL agencies. 2. Construction, including house construction by locallnational contractors using the villagers as labourers, electricity installations by qualified contractors, irrigation infrastructure by regionallnationalcontractors and road construction also by local contractors. 4.5.4 International programs The NT2 Project will look out for establishing partnerships with other international or bilateral programs with a complementary focus and operating in the same areas, such as the UNDPIWorld BankISNV supported 'Governance Reform and Livelihood Strengthening Program, Khammouane Province' (GPARLSP). Their major outputs have been defined as to include: 1 .Strengthening provincial governance through improved coordination, re-organisation, improved financial management and widened public awareness. 2. Enabling balanced development of a market economy that includes simplified regulations for businesses and enterprises, strengthening of the Governance Reform and Livelihood StrengtheningProgram, Khammouane Province' (GPARLSP). 3. Livelihood strengthening through opening of new market opportunities' for rural producers, giving particular emphasis to the role of women in market-oriented activities, improved natural resource management, and developing methodologies for a District Development Fund. Particular issues included in the GPARLSP Program and explicitly set to be carried out jointly with NTPC include mitigating measures for NT2 Project impact and capacity building activities measures for the RMU. 4.5.5 NGOs NGOs have skills that may assist government organizations in carrying out specific tasks. Such tasks may include developing and implementing agricultural activities, organizing community-based development activities, aspects of the health program and adult education. These activities will not only help to develop village-based organizations and build capacity, but also provide excellent training opportunities for staff from provincial and district agencies. For example, an NGO was tasked to conduct the Social Impact Survey and Livelihood Baseline for Project Land. To strengthen the drive for transparency and public disclosure, NGOs are also invited to attend NTPC's public forum Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 5 Public Consultation, Participation, Disclosure (PCPD)And Grievance 5.1 Introduction Information dissemination, consultation and participation with a wide range of stakeholders are crucial processes for planning and implementation of compensation, resettlement and livelihood restoration programs. Broadly defined, stakeholders include any individual or group affected or believed to be affected by the NT2 Project; and any individual or group that can play a significant role in shaping or affecting the NT2 Project, either positively or negatively, including the host community (IFC 2002). Early consultations and information sharing have helped to manage public expectations concerning the impact of the NT2 Project. Subsequent consultations provide opportunities for the NT2 Project and representatives of people affected by the Project to negotiate compensation packages and eligibility requirements, resettlement assistance, livelihood assistance and the timing of resettlement activities. NT2 Project has organized and facilitated a series of participatory workshops with NT2 Project stakeholders throughout the planning and implementation of its various activities. The purpose of these consultations is summarized as follows: Informing the stakeholders about the NT2 Project, its impact and measures to mitigate those impacts Provide opportunities for PAHs to voice their concerns and propose alternatives Negotiating compensation packages and eligibility for entitlements Identifying choices for resettlement sites and timing of relocation Agreeing on development initiatives and livelihood restoration programs Develop procedures for redressing grievance and resolving disputes Develop feedback mechanisms for effective monitoring and evaluation Those consultations convened by the NT2 Project included Project representatives, relevant government authorities, representative of concerned 'mass organizations' and members of the affected communities. Poorer strata of the rural society, female-headed households and other members of vulnerable groups (minorities, elderly people, disabled persons, and youth) have been given particular attention as they may find it difficult to defend their interest in a public forum. For example, PAHs who are impacted by the NT2 Project but were not included during initial impact assessments and asset registration or believe that they have not been adequately compensated may submit their complaint through the Village District Grievance Committee (DGC). When cash compensation is necessary, rates for compensation are determined by DWG, based on prevailing local rates (for agricultural products) or replacement cost (for residential structures if NTPC does not build). In the event that the PAH is not satisfied with the compensation proposed, they have an opportunity to submit a complaint. The DGC adjudication may reject some applications or partially Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1- General Information October 2007 5.2 Approach, objectives and components of Project Land Consultations 5.2.1 Approach and objectives The objective of the Public Consultation, Participation and Disclosure (PCPD) process is to develop and maintain avenues of communication between the NT2 Project and stakeholders in order to ensure that their views and concerns are incorporated into Project designs and implementation arrangements. The feedback from consultation is an important component of the planning process leading to the formulation of mitigation measures (i.e. alternative livelihood options) and compensation plans for project affected communities. For Project Land, consultation was carried out in small group discussions with directly impacted households as opposed to village-level consultations as those canied out for the Nakai Plateau and the Xe Bang Fai Downstream areas. This method of consultation was more appropriate to address the needs of the PAHs in Project Land. Thus, in Project Land meetings consisted of smaller groups and were more focused in terms of information dissemination and discussion of compensation. The NT2 Project's PCPD process carried out for Project Land had the followingcomponents: 1. Baseline Study Consultations 2. Village and District-level Recurrent Consultations 3. Consultationson the relocation of Physical and Cultural (Spiritual) Resources (PCR) 4. Setting up a grievance redress mechanism 5.2.2 General Information on the impacts, entitlements, and compensationoptions has been, and will continue to be disclosed to the affected people. A Public Information Centre is located in the provincial capital, Thakek. Tools to disseminate information and seek feedback of the PAHs include: posters maps and satellite photo maps; poster size lists of affected households and their affected assets; = poster size schedules of the actual resettlement (house relocation) tasks; = town loud speaker broadcasts; and a wide range of consultative meetings and workshop (see below) poster size Entitlement Matrix; poster of the grievance mechanism Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1- General Information October 2007 6 1 Baseline Study Phase 2 Consultation IDec 2004 to March 2005 1 contractor,NTPC I >assets registration >socio economicsurvey 7 Public Posting of May 2005 GoL, NTPC (a) list of PAHs and impacted assets (b) maps of impacts - (c) scheduleof resettlement activities 8 Impacts review and land and fixed assets compensation May/June2005 GoL, NTPC consultations 9 Furtherconsultationswith borderlinePAHs; 1 June2005 GoL, NTPC - 10 Consultationswith existingowners in Resettlement Site (June2005 GoL, NTPC 11 Occupation and LivelihoodsConsultations ( June-July 2005 NTPC, GoL 1 12 House design finalizationconsultations ( June-July 2005 NTPC, GoL 13 Resettlement SiteLayout and PAH plot selection(size and June-July 2005 NTPC, GoL location) consultations 14 Wells and domesticwater source October2005 NTPC, GoL --- 15 Outbuildingsconsultations October2005 16 Consultationsfor drafting of Compensation Agreements October- December 2005 NTPC, GoL 17 Consultationsfor compensation with PAHs Ongoing NTPC, GOL Table 3. Main Disclosureand Consultation Activities 5.2.3 Baseline Study Consultations The baseline study was camed out in 2003 and 2004 to obtain information regarding livelihoods, land and assets both in and outside Project Land of each potentially affected PAH using questionnaire forms, informal discussions and satellite photomaps. The information collected during the consultation has been used to estimate impacts and outline potential mitigation measures. Baseline studies were conducted according to RAP categorization. Prior to the commencement of baseline/livelihood survey in each village, a meeting was arranged with the family heads in the village to provide a brief description of the NT2 Project and to explain the purpose of the survey. The structure of the survey was then described to the PAH. The PAHs were requested to prepare relevant documentation, e.g. Family Books, land certificates and tax receipts, prior to their survey appointment. Village authorities, particularly the Village Chief and Deputy Village Chief, were also requested to provide ongoing assistance to the process of arranging survey appointments with each of the PAH. The survey was conducted by two Livelihood Survey Teams, each team consisted of a team leader, an enumerator and at least one representative from the district government. Where required, the government staff assisted in translation from Lao to Makong language during the survey. They also ---:-*-A C--:l:-- :-:A--*:C.:-- *Lo:- l n - r l n-rl n o o n t o th4r .=v;rt;nn r\- t h n ontn1l;tn ; m n m n n r k o o n r l nn Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1-General Information October 2007 While the NT2 Project explained to each PAH the policy entitlements and the various livelihood restoration options that the Project considers as possible, appropriate and feasible, the PAHs were tasked to review and discuss these options amongst each other and present ideas and preferences. Thus, village and PAH consultations have been undertaken in five steps: I. An introductory workshop for Project staff, representatives and the villagers is conducted. This activity is one day training for village-based trainers. This is followed with a one or two day activity of consultations, depending on the size of the LPA and the population to be affected. 2. The establishment or strengthening of village organizations, including the setting up of a Grievance Committee and Village Compensation Committees is carried out. 3. Following participatory reviews of collected data on impacted assets, a draft Compensation and Rehabilitation Scheme is produced and is presented and discussed at either the village level or the Project Land level. 4. Problem analysis is carried out at village level with both men and women. During this activity, data on the NT2 Project impact on household levels are verified and PAH livelihood restoration preferences are identified. 5., The draft version of the preliminary Compensation and Rehabilitation Scheme forms the basis of the final Compensation and Rehabilitation Scheme document for public disclosure and discussion. While the compensation scheme is developed primarily with the participation of affected villagers, the scheme must be approved by other key stakeholders, such as the NTPC, the DWG, the RMU (Resettlement Management Unit) and the RC (Resettlement Committee). These stakeholders will undertake a combined review of the proposed compensation scheme and options as proposed by villagers. Where possible, a consensus on a compensation scheme is reached and presented to the village for their acceptance or otherwise. Final consultations will be carried out to ensure that each and every PAH is fully aware and informed about the impacts and their individual compensationand rehabilitation schemes. 5.2.5 Consultations on the relocation of Physical and Cultural Resources (PCR) PCR consultationswere carried out in three steps, namely: Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 consultations with villagers through focus group discussions. These focus group discussions were the primary key in identifying PCR objects and sites. Discussion on PCR mitigation The second phase in PCR consultations occured in November-December 2004 in eight identified villages that have physical and cultural resources within or near their villages under Project Land. Discussions were carried out to identify mitigation measures and/or relocate resources in a manner acceptable to village elders and spiritual leaders as well as the general population. The focus was on practical arrangements involving the participation of villagers (SDP, Vol. 4, Chapter 6, Tab. 6- 4 details PCR consultations and responses). Members of all relevant ethnic groups participated in village level discussions. For example a PCR, the cemetery at Phonphanpek Village, was identified and as construction activities had commenced close by, village elders requested measures to appease the spirits there. Safeguards for PCR adjacent to Project Land In the Ethnic Minority Development Plan (EMDP) for Project Land, (SDP, Vol. 4, Chapter 4), measures are outlined for safeguarding PCRs adjacent to Project Land, including demarcation or active preservation measures. In order to identify sites and suitable measures, consultations have been carried out with affected villages and the results have been incorporated into plans allowing the Head Contractor to alert employees working within proximity of PCRs. Villagers are , responsible for supervising and monitoring such sites. 5.2.6 Disclosure Adhering to the Concession Agreement and the World Bank and ADB safeguards and policies, information, documents and reports are to be disclosed and available to the public. This action promotes better understanding and awareness not only to the stakeholders but most importantly to all concerned individuals and answers NTPC's responsibility for public accountability. As previously discussed consultations have been camed out to inform all PAHs regarding entitlements and losses of land and assets. It is anticipated that changes will occur during project implementation which in turn will modify the number of PAHs affected and the corresponding losses. NTPC will implement an information, education and communications (IEC) strategy to disseminate information in 2007. 5.2.6.1 IEC strategy To ensure that PAHs are fully aware of their rights to compensation and livelihood Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1- General Information October 2007 These activities will be conducted in collaboration with the DWG and RMU. 5.2.6.2 Exit Strategy The Project Land Program aims to provide all PAHs with their entitlements and provide livelihood assistance until the PAHs are capable of sustaining the livelihood starting from procurement of input to sale of products independently. The program intends to gradually reduce its intensity as pre-project level incomes are attained. Continuous monitoring and evaluation of performance of the PAH will occur to assess sustainability of the activities. The PAH will be provided with ongoing technical advice and training as required. The Project Land Program aims to phase out and merge with the Downstream Program in 2008 as once the dam is in operation, all Project Land will be considered part of the Downstream Area. At this stage PAHs involved in the Project Land Program will be involved in the Downstream Program and specific issues can be raised through the GRM. By 2008, most, if not all, compensation activities will be completed and livelihood restoration will be focused on technical advice and training without substantial capital input. This strategy is in line with the community development approach of the Downstream Program. During the implementation of the livelihood restoration program, NTPC staff and consultants will work closely with District Authorities to ensure local government support and follow through. Building the capacity of the local government will enable PAHs to seek advice from local authorities once the Project Land program has phased out. 5.2.7 Grievance Redress Mechanism (GRM) The GRM reviews and adjudicates upon grievances submitted by any individual, firstly at the village, then at the district and finally at the provincial level, if each earlier step could not resolve the grievance. The GOL's RMU, the DWGs and the NTPC will provide technical specialists or witnesses to any grievance hearing. The findings of the DGC and PGC are considered binding for the RMU and RO. The Committee must maintain a public record showing all claims received and the decisions made, which must be taken within 30 days. The DGC & PGCs cannot award compensation that goes beyond what is established as a matter of practice or what would be outside the limits of the budgets agreed to by the NT2 Project and Resettlement Committee. Beyond the DGC, access to the PGC or the Provincial Court is a last resort (for more details on this process SDP, Vol. 1, Chapter 6, Section 6-7, and Vol. 1, Chapter 8, Section The basic steps to lodging grievances are as follows: Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1 -General Information October 2007 Step 3. DGC (District Grievance Committee): VGC sends PAH application to DGC, DGC collaborates with PL/NTPC and RMU for another 15days of investigation after receipt. After 15 days DGC, PLMTPC and RMU informs PAH of the outcome of the investigation and the decisions made. If the PAH is satisfied the issue is closed, if the arbitration is unsatisfactory to the PAH then the issue will be transferred to the next level. Step 4. District People's Court & RC (Provincial Governor/ Chairman of the Resettlement Committee). DWG will send the case file to the District People's Court & RC to investigate and make a decision. If the outcome still doesn't satisfy the PAH it will be handed over to the final level. Step 5. Provincial Court This is the last level of investigation. A Decision made by this court will be final and binding. Most grievances are settled by step 3. 5.3 Special consideration of vulnerable groups Vulnerable groups in this document are understood as people who by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage, or social status may be more adversely affected by resettlement than others and who may be limited in their ability to claim or take advantage of resettlement assistance and related development benefits. * Supplemental livelihood options have been understood as cdntributing to the alleviation of poverty, which is still widespread in all the villages affected by the NT2 Project. In recent years there has been growing acceptance in development practice that poverty reduction requires opportunities for the poor and organizations working on their behalf. It has been recognized that poverty is a complex and diverse phenomenon with quantitative (e.g. income, life expectancy) as well as qualitative (social capital, empowerment, ability and opportunity to exert influence on political and economic processes, etc.) components. 5.3.1 Gender action planning In most countries women comprise a disproportionately large number of the poor (ADB, 2001; The World Bank, 2003). Gender discrimination limits women's access to resources, opportunities and public services necessary to improve the standard of living for themselves and their families. As a result, women are often the first to suffer when resettlement is planned or executed badly. Women tend to rely more heavily than men do on informal support networks, such as the help of friends, neighbors, or relatives for child care for example. Women with children also have less physical mobility to travel to find ways of earning a livelihood. For these reasons, efforts to maintain continuity of social ties and its intricacies affected by the NT2 Project - whether through the.physical design of . .. . - . . . . *. Nam Theun 2 Hydroelectric Project ResettlementAction Plan Volume 1-General Information October 2007 New economic opportunities brought about by the NT2 Project's livelihood support program, improved road access and other development openings introduces risks such as a loss of status for women, particularly those from ethnic minorities. The following strategies have been adopted to ensure that gender issues are addressed: 1. The use of a CLO (Community Liaison Officer) will enable the project to better understand the particular situation and needs of Makong. 2. Project monitoring and real time evaluation should disaggregate data gathered by gender and be reported on in a similar fashion. 3. The livelihood restoration development process should ensure that women's perspectives are given equal weight in decision making and that women have the opportunity to f'ully engage in decision making. 4. Household livelihood restoration measures must be agreed upon by both the male and female heads of household. 5. Households with a single head, male or female, are expected to be particularly vulnerable because of reduced household labour availability. The Project should place particular emphasis on these households through establishing a 'vulnerable households' listing that detail those facing the greatest difficulties. 5.3.2 Ethnic minority developmentplanning It was acknowledged that ethnic minorities in the context of Lao society are a vulnerable group and that the planning process addresses this in the various programs and mitigation measures. It was also recognized that some ethnic minorities and communities are particularly vulnerable, in terms of livelihoods, economic well-being and power relations, and that additional measures are required. Measures adopted took into consideration the differences and inequalities between ethnic minorities/cornmunities and how these may have adverse impacts on the more vulnerable groups unless additional measures are taken. About 75% of the local population for Project Land are from various minority groups. Following the World Bank and ADB policy guidelines, groups with a distinct social and cultural identity from the dominant society may be classed as vulnerable or disadvantaged in the context of the development processes. Hence, the RAP emphasizes the necessity of identifying specific needs and aspirations through prior consultation in order to create conditions for participatory planning, implementation and monitoring, minimizing potentially adverse effects and encouraging developments that will lead to economic and social improvements. Consequently, relevant material and recommendations in the Ethnic Minority Development Plan (EMDP) have been incorporated f'ully into the RAP and mitigation plans. Note however, that while the majority of local people may be from ethnic minority origins, in the project affected areas, they are in fact the majority and so while they can remain vulnerable, some aspects of resettlement, such as preparation of the PAH for resettlement in "foreign" temtory do not ,.-..- ..--,Io.,+-...4.,- :Aa..,.+:--- ..:-,.n*I.,. D A U - .-.I.- ,I:A 4?n.., -l.-.-:--11-. ..-l-,.-&-A .-.:&L:- *L- ---.A Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1 -General Information October 2007 6 Compensation,income and livelihood restoration 6.1 General principles of compensation and livelihood restoration Every household or each community that utilizes or owns land or other assets or seek livelihood from any area defined for Project Land at the time that the Baseline Study Phase 2 was undertaken are considered eligible for compensation. Ownership can be defined as either formal or informal. There are no formal land titles for land or assets in the project area though ownership is officially recognized in Lao PDR by the registration of land and assets for the purposes of tax. In some instances, impacted land and assets are not allocated to a particular PAH, but to members of a village or community. This is often the case for forests, grazing lands and fishing areas, which are considered community rather than private assets. In these cases the village is the eligible affected entity. Activities aimed at capacity-building should attempt to strike a balance between capacity building of local government agencies (District-level) and community-based, local formal and informal institutions and leaders, with particular emphasis on PAHs, and amongst them, on women, the poor and other disadvantaged groups. Livelihood restoration and other development are designed to be camed out through District and Village ResettlemendDevelopment Committees, which, with their personnel composition, mirrors the formal Party structure. In addition to those Committees, attention should be paid in future activities to the encouragement and strengthening of informal, self-help community-based PAH initiatives. The underlying principle of the NT2 Project's Social program is that lost income is fully compensated. As a general rule, there are three main types of possible compensation: 1. Payment of cash compensation for lost production, income or fixed assets; or 2. Compensation by way of direct replacement, andlor 3. Rehabilitation or income restoration. Compensation schemes have been developed based on entitlements as per the CA Entitlement Matrix. Table 2 below, based on the CA Entitlement Matrix, lists the loss of land, assets and livelihoods that is eligible for compensation 1. Land Agricultural land (permanend Business land temporary loss) Residential land (home lot) 2. Houses and other Houses fixed structures Farm buildings (e.g. rice huts, rice barns, storage facilities) Other buildings (shops) Nam Theun2 HydroelectricProject ResettlementAction Plan Volume 1- General Information October 2007 Schools, clinics, government buildings Electricity Roads, tracks and bridges Town (planning) 6. Community NTFP areas property resources Firewood and other wood product gathering areas Fish and other aquatic products 7. Allowancesand Disturbance allowance transitional measures Transport allowance Rental allowance Business transition allowance Transitional food/income assistance Other special assistance Grievance entitlements Table 4. Asset type and classification Source: CA Entitlement Matrix for People aflected by NT2 Project ConstructionActivities Compensation entitlements are reviewed with each PAH for verification and finalization. Compensation is based on three main factors: 1. Significanceof impact: Cash compensation is provided for PAHs who are not significantly affected by the project. This applies to PAHs whose livelihoods are less than 10%' affected by the project., Instances where PAHs are significantly impacted (e.g. loss of more than 10 % of the families land and/or livelihood), direct land replacement or development of alternative livelihoods is promoted. Requirements of PAHs: Compensation type provided also depends on the concerns and proposals of the PAHs. For example, PAHs impacted greater than 10% can request for final cash compensation. The CA requires financial planning assistance be provided by NTPC. Such a request requires the approval of the DWG and RMU. Some vulnerable groups such as the elderly or widowed who cannot take up the livelihood options may also opt for final cash compensation. Also PAHs who would like to purchase land or assets elsewhere may also opt for final cash compensation. These PAHs are required to present business plans for approval to ensure responsible financial investments. 3. Legallphysical barrier to replacement: In cases where there is a legal or physical barrier to replacement, rehabilitation or relocation of land or assets or alternative income producing opportunities, cash compensation may be ., . . . .. .. .. -. . -- ... 3 ,- -*-.- *-* Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1-General Information October 2007 6.1.1 Compensation entitlement As described above, entitlements depend on particular aspects that classify households or the community as eligible for compensation. The above activities delineated compensation into 4 main classifications: 1. Project Affected Households (PAH) PAHs are divided into two main classes: i. PAH impact of less than 10%: Household income is not significantly affected. Productive (cash and imputed income generating) land assets are impacted at a value less than 10% of the total amount. ii. PAH impact of more than 10%: PAHs whose income and assets are significantly affected by the activities of NT2. Productive (cash and imputed income generating) land assets are impacted at a value more than 10% of the total amount. Within these classes are special groups such as those classified as vulnerable from the baseline survey. Compensation provided requires both spouses to sign the compensation forms to ensure transparency and disclosure. 2. Infrastructure replacement and improvement Infrastructure replacement is applied for community structures such as schools and water points where NTPC replaces the affected structure. Infrastructure improvement is related to community level improvements such as bore hole drilling and hand pump provision for health and sanitation purposes placed throughout the village. 3. Community Resources Resources that are not assigned or owned by a PAH but are utilized by a number of individuals from a village are classified as a community resource. For example, fishing areas in waterways are considered as a community resource and compensation must be provided to the impacted group. A village fund is allocated for each affected community and the utilization of these finds are determined by the village in consultation with NTPC and the District. 4. Allowances and transitional measures As stipulated in the CA, allowances and transitional assistance will be provided on a case to case basis as the need arises. For example, interim compensation could be provided to PAHs who have not been severely impacted, or those who are considered Nam Theun 2 Hydroelectric Project ResettlementAction Plan Volume 1 General Information - October 2007 2. the cash equivalentof seven (7) years gross production from the lost land; or 3. the actual replacement cost of the land as assessed at the actual time of payment of compensation. Compensation is providedunder the following categories: 1. Interim compensation It has been decided that due to delays in the availabilityof baseline data (in relation to pre FC start date of construction) and asset appraisal values in RAP 3, PAHs will receive interim compensationuntil final compensationis provided for. 2. Final cash compensation Final cash compensation is the one-time payment for loss of fixed assets, such as land or common property resources. The flowchart (fig 6) depicts the process involved and the outcomes of each step as explained in each section below. Project Affected Household Disturbance Allowance < or > than 10% FinalCash Compensation Fieure 5. Comoensation flowchart for PAHs affected 4 0 % Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1 -General Information October 2007 PAHs who wish to obtain final cash compensation as opposed to livelihood restoration measures, will be assisted in developing business plans for the cash compensations that they opt to receive. The Project Land office, together with RMU and DWG will provide expert assistance so that the cash compensation received will be used for appropriate productive enterprises. If the PAH cannot prove to DWG's satisfaction that they will utilize the cash for livelihood, then they will be required to continue with livelihood restoration measures to restore pre-project level income. During the initial implementation stage of the Project Land Program PAHs are provided with the opportunity to be involved in livelihood restoration measures as endorsers and pioneers. This will encourage other PAHs to be involved as examples of success will be available. The flowchart (fig 7) depicts the process involved and the outcomes of each step as explained in each section below. Disturbance Allowance 0 < or > than 10% affected > 10%affected restorationand assistance ,a Livelihood Restoration Develo ment Advice Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1- General Information October 2007 6.3.1 Interim and final compensation Compensation is provided under the following categories: 1. Interim compensation Interim compensation is based on production losses and is paid on an annual basis until household income has reached pre-Project level. Production losses are based on an approved estimate submitted by the villagers and verified by the Village Head and the District Working Group. Value of interim compensation paid is not deducted from capital investment made for livelihoodprogramme development. 2. Final compensation Final compensation is the one-time payment for loss of fixed assets, such as land or the equivalent of 7 years gross production of the land. 6.3.2 Land Significantly affected farmers are in principle entitled to replacement land; of the same type, with productivity equal or greater than that of the lost land. Though it would provide optimum benefits for the project and the PAHs if the 'Land for Land' scheme were implemented for the relevant PAHs, PAHs in Project Land who have lost part, or all of their land cannot be guaranteed to receive new land. To address the loss of land, and in turn livelihood, two approaches are being utilized (consistent with CA): 1. New land development Unproductive land is identified and negotiation occurs between NTPC and the land owner. In exchange for land clearing and UXO clearance of the entire plot, NTPC receives 50% of the total land area to redistribute to PAHs. It is anticipated that such land will be provided to PAHs who reside within a close proximity to the newly developed land. As this new land is not suitable for rice cultivation, alternative livelihood activities are identified. These land parcels are developed into highly productive perennial gardens. PAHs will be provided with infrastructural improvements and agricultural development assistance to develop the land. Livelihood assistance is provided to the PAH under the crops and horticulture livelihood strategy of the project. 2. Reclamation of land Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 Initial assessments have identified potential uses for around 85 Ha of the area in Gnommalath for livelihood restoration activities. Borrow pits have potential as fish ponds whereas spoil areas can be converted into upland gardens. A detailed assessment will be carried out once the HC has completed the work in the area. NTPC will negotiate with the HC regarding the earlier return of land to be utilized for livelihood activities. Compensations for other fixed structures, such as rice huts, storage room, pigpens, etc. are determined on a case by case basis as this is dependent on size, roofing, wall, and flooring materials previously used. 6.3.3 Crops, trees, fish ponds and other productive assets Compensation is provided for crops not yet harvested at the time of relocation based on gross harvest income. Standing crops are compensated at full replacement cost regardless of maturity of crops. Compensations for trees are based on the type, age and productivity and the cost of production and rearing of trees. With respect to fish ponds, a lump sum cash payment will be made equivalent to 7 years lost productivity of the fish pond as part of the final payment. 6.3.4 Project Land Livelihood Restoration Strategy 6.3.4.1 Introduction The impacts of construction activities on the livelihood of the local population have to be seen in different perspectives and time frames. PAHs who live on the Nakai Plateau (outside of the Nakai Reservoir inundation area) as well as people in Gnomrnalath, Mahaxai, Xe Bang Fai, Xaibouly, and Kaysone Phomvihan Districts who are significantly affected by construction activities, including road and transmission line construction are considered as PAHs of Project Land. The Project Land Livelihood Restoration Strategy is mainly concerned with PAHs whose livelihoods are severely impacted by construction activities. Within numerous Project Land areas, basic sources of food supply and income have been irreversibly damaged by construction activities. In general, primary income of local people in the affected areas is derived from land-based agriculture, NTFPs, livestock and fishery yet rice production still plays a key role with regard to food security. It is anticipated that the affected population will now be increasingly exposed to market logic and rules, and do not have the skills and knowledge to take advantage of better income opportunities. NTPC will provide guidance and training to ensure that PAHs are well equipped to take advantage of the new opportunities, many of which will be non land based. Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1- GeneralInformation October 2007 The development of irrigation in the Gnommalath Plain through the use of water from the future Downstream Channel described in the SDP as a key element for agricultural development and livelihoodrestorationhas essentiallybecome an obsolete option due to the following: 1) The Downstream channel as currently designed is not a multi-purpose channel and is not suitable for irrigation due to its hydraulic properties (elevationin relation to surroundingland) and the fact that releases cannot be guaranteed to be timed with agricultural requirements in mind. 2) Water in the Downstream Channel will only be available after COD in December 2009. The water quality in the Downstream Channel will most likely be unsuitable for domestic or agricultural use for several years after 2009. Additionally, development of irrigation for the sole purpose of rice production during the dry season on sandy soils with medium fertility is unlikely to provide yield levels which could provide a substantialincome improvement for the local population. 6.3.4.3 Farmers' preferences In order to create a successful livelihood strategy, a participatory approachwas utilized. Involving the farmers in deciding on the types of viable livelihood options encouragesprogram ownership which in turns promotes success. Initial consultationswere conducted with the full list of PAHs according to the baseline survey. When asked about their priorities for livelihood restoration measures, a total of 412 households of significantly impacted PAH fiom 16 villages in Gnomrnalath and Mahaxai District, representing 93 percent of the total number of affected households in Project Land, gave highest priority to rice paddies and the raising of large animals, in particular, cattle. Data shows that they also showed preference for vegetable gardens, small livestock (pigs, goats, poultry), fish farming and mushroom growing as shown in the table 3 below. (Livelihood options chosen t1'' choice 1Rice paddy ( Large livestock ( Vegetable garden 1 Table 5. PAH priorities for supplementallivelihood options (Gnommalathand Mahaxai District) There are considerablevariationsamong PAHs with respect to their preferred options; details are available in RAP 3. In addition,the requestby the research team to identify at least three most favored choices provided some valuable insight into farmerpreferences. Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 PAHs around 30 % have lost more than 90 % of their income. They are considered to constitute a priority group for livelihood restoration measures. Irrigation development, as discussed earlier, will not provide new or better income opportunities for those PAHs who have lost more then 90 % of their land and other income sources. At present, the implementation strategy is to apply an integrated approach for livelihood restoration and general agricultural development. (a) PAH selection criteria for livelihood activities The flowchart for selection criteria for livelihoodactivities is as follows: Livelihood Restoration Strategy Selection Process 1PAH Consultation held by NTPC and DAFO PAHS are informed I- / about each IEC Workshop on Livelihood option Livelihood and the necessary Strategies inputs (land. labour, etc.) -- -------- - PAH registration I for Livelihood Resource verification by DAFO and NTPC Detailed Livelihood IEC Workshop for qualified PAHs PAH agreement and registration Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1-General Information October 2007 This process allows for the identification of labour needs and capacity of the PAH to implement the livelihoodrestoration activity chosen. As each option requires certain inputs,variable land allocation and labour force, the PAHs are provided with a variety of activities and decides based on the requirements for each activity and hisher level of interest in the activity. The selection criteria are utilized for all livelihoodactivities though PAHs are provided the opportunity to choose more than one activity to be involved in should they have the capacity to do so. 6.3.4.5 Rice production improvement(wet season) The importance of rice production for the local population is evident and well documented. Improvementsthrough a range of interventions for PAHs who lost substantialparts of their rice land in order to recover their lost production to a maximum degree have been included in the livelihood replacement strategy. During the dry season the soil in the Gnommalath Plain is well suited for field crops, vegetables and forage crops. The residual effect of nutrients in the topsoil will be beneficial for the following wet season production of rice. Goals for the rice improvement strategy are closely related to other livelihoodrestoration activities, and can be summarized as follows: a) overall improvement of food security for all households and communities; b) promotion of crop diversification during the dry season; c) prom~tionof land use for forage production in the dry season; and, , d) Livestock improvement. Rice improvement is achieved by providing the following: 1. Improved rice varieties Improved rice varieties are provided to the PAHs for planting. These varieties perform better than local variety 2. New planting techniques Technology provides better planting techniques and the knowledge is given to the PAHs to increase their yield. 3. Fertilizer The PAHs are provided with chemical and organic fertilizer 4. Pest control Pests have been identified as a serious problem for wet season rice production and NTPC will provide training and materials to protect and reduce the incidence of losses. The main cause of losses is gall midge, an insect that can destroy crops on a large scale. Chemical means of pest control will be avoided and focus will be placed on natural means. 5. Training Training will be provided for all PAHs involved in rice production to increasetheir yield for Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1 - GeneralInformation October 2007 season. An increase in wet season rice production allows for other options to be considered as alternative crops during the dry season. Improvements in rice production is not considered as the main means of livelihood restoration and improvement, but as a key element in providing opportunity and confidence building by improving food security. Rice fields in the Gnommalath Plain (Photo:H.-D.B) 6.3.4.6 Cash Crops and Horticulture Seasonal and Perennial Horticulture production has been identified as one strategy to replace lost production areas along river banks and other locations permanently used for project infrastructure. Two types of cash crops and horticulture production methods are to be implemented: 1. The cultivation of perennial gardens with a variety of h i t trees combined with annual vegetables under non-irrigated conditions or partially irrigated conditions, and 2. The cultivation of seasonal gardens during the dry season in former rice fields using existing irrigation facilities and promoting the use of more efficient irrigation methodologies. This production can play a bigger role in providing more income for ... D A U" L;,h 1,"t 0 "..hntn"t;nl ..,rt;,n nf +ha;-..,,A..,-t;.,& 1,"A Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1 -General Information October 2007 Mushroom production The mushroom species, Pleurotus ostreatus and P. sajor-caju are naturally growing species of mushroom in the Mekong region. It is an edible, fast growing h g u s that is resilient and has high market value. These species of mushroom are usually harvested from the forest for personal consumption. The potential of growing and selling mushrooms has been identified and is one of the livelihood strategies implemented by the project. NTPC, together with the DWG and DAFO assist the PAHs in producing mushrooms. This strategy will be carried out as follows: The PAHs are provided with a mushroom house, inputs and training by NTPC. Continuous technical knowledge and marketing training will be provided for the PAHs to promote sustainable livelihood as after one cycle of implementation PAHs are projected to provide their own inputs from profits. This strategy provides an opportunity for other PAHs to gain an understanding of how to cultivate mushrooms in a controlled setting and the mechanisms involved in the process, from inception to sale. It also provides information to all PAHs involved on the costs and required labour input and effort required to maintain this activity. PAHs will also be trained in each step in the life cycle of mushrooms as the initial stages of producing s p a v is a necessary step in ensuring local availability of inputs. Vegetableproduction PAHs who decide to produce vegetables will be provided with assistance from NTPC, DWG and DAFO. This assistance will be based on the recommended crops from the horticultural market survey. This strategy will be camed out as follows: The PAHs are provided with fencing material, inputs and training by NTPC. Vegetable gardens are prepared for cultivation either in upland gardens or in rice paddies during the dry season. Seeds and fertilizer are provided to the PAH to plant within the garden. Continuous technical and marketing training will be provided for the PAHs to promote sustainable livelihood as after one cycle of implementation PAHs will be required to provide their own inputs from profits. This strategy provides an opportunity for other PAHs to gain an understanding of how to cultivate vegetable crops and the mechanisms involved in the process, from planting to sale. Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1 - General Information October 2007 Assistance with setting up upland gardens and dry season rice paddy cultivation is given to the PAH. Seedlings, fencing and fertilizer are provided and PAHs are given training from the onset of the activity to ensure program follow through from production to sale. Non timberforest product restoration The various construction activities at the Power House, Switch Yard, Regulating Pond, Regulating Dam, Downstream Channel and Transmission Line have resulted in destruction of forest areas and natural resources, which were previously used by the local population for activities related to timber and non-timber forest products (NTFPs). As NTFPs play an important role in rural communities as a food and income source, the destruction of forest areas has had a direct impact on the livelihood situation of the local communities. A major source of food and a substantial share of family income is derived from NTFPs, which are still harvested in a traditional way, and which are limited to a specific range of products. Perennial crops for which there is an existing market, such as Jatropha curcas known in Laos as 'Mak Nhiau' will be introduced. This perennial crop will be well-suited for the re-vegetation of spoil areas, channel embankments and upland gardens. Jatropha is also well known as the oil extracted from its seeds are used for making biodiesel fuel. The farmers will be encouraged to maintain a mixed plantation of Jatropha, a mixture of Eagle ,wood/hittrees, pigeon pea for wax (strick lack), pineapple, rice and other vegetable in the low lying central part of the land and rattan, berberlin, eagle wood and other natural trees on higher land under natural forest. The NTFP strategy is implemented as follows: NTPC will provide fencing, and inputs, such as Jatropha seedlings and fruit tree seedlings, for PAHs and provide assistance in preparing the soil for cultivation, at least for the first year, providing the PAH with capital for the succeeding year. Continuous technical training will be provided for the PAHs to promote sustainable livelihood and follow through marketing techniques. This strategy provides an opportunity for other PAHs to gain an understanding of how to grow mixed crops and its benefits. 6.3.4.7 Livestock production improvement Livestock plays an important role in the household economy either as cattle, small livestock or fish. Traditionally, livestock is perceived as an asset. Raising livestock is not labour intensive and local species are resilient to disease. Crops have set seasons and harvest periods whereas livestock can be Nam Theun 2 Hydroelectric Project ResettlementAction Plan Volume 1 - General Information October 2007 security and cash income. For PAHs who have lost a major share of their land, an expansion of small livestock production under improved conditionscan substantiallycompensatefor lost income. Livestock Sale of livestock account for more than 50 percent of cash income in many upland areas and over 95 percent of livestock is produced by smallholders, with only a small number of commercial pig and poultry enterprises near major cities. Thus, as the survey on PAH priorities for livelihood alternative shows, PAHs primary interest restswith large animals. The potential for expansion is related to the availability of sufficient grassland and grazing areas, which will be difficult to identify or to develop in the area. Non-land dependent livestock like pigs are encouraged due to the unavailability of land. For all types of animals raised, emphasis will be focused on improvements of raising conditions,feeding,hygiene, veterinary serviceand market conditions. The raising of small livestock like pigs, and the improvement of feeding conditions can be combined with the enhancement of upland gardens by including cassava, corn and sweet potatoes into the cropping pattern. The best economic benefits with this kind of livestock can only be obtained, if farmersare able to produce their own feed material. With diminishinggrazing lands for large animal's alternative ways of feeding, such as the cut and carry system, is promoted as a means to produce fodder crops in gardens close to the animal pen. As raising small livestock is the responsibility of,the rural women, who have to carry a substantial workload already, attention should be given to the gender aspects of related activities.Given the recent spread of the bird-flu epidemic, traditional methods of chicken raising must changed. The combined raising of ducks and chicken must be stopped, as ducks are the main transmitters of H5N1. The livestock raising strategy is implemented as follows: The PAHs are provided with cattle pens, inputs for forage material and training by NTPC. For PAHs who raise cows and other types of larger livestock,pens are constructed.For pig raising, PAHs are provided with piglets and grass roofing for existingpens. Forage type plant seed material (i.e. stylus grass, sorghum) is provided to the PAH for planting. PAHs are also provided with rice bran and feed for pigs. Continuoustechnical and marketingtraining will be provided for the PAHs to promote sustainablelivelihood as after one cycle of implementation PAHs will be required to provide their own inputs from profits. This strategyprovides an opportunity for other PAHs to gain an understandingof how to ,..I+:..,+, FA,,,, ,,+,-.,I ,,A -,:,e,.;.. 1: ..--&--I. Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1 General Information - October 2007 market for frogs (Ranidae) and frog raising. The project has focused on the potential market for frog raising and will provide the opportunity for interested PAHs to raise frogs for sale and consumption. The frog raising strategy is implemented as follows: NTPC provides frog tanks, juvenile frogs and feed. NTPC supports the PAH through training and advice of a frog consultant until the frogs are sold. A limited number of PAHs are trained by the consultant for worm raising. Breeding training to produce tadpoles is provided to a limited number of PAHs complete the production cycle at the local level to ensure local availability ofjuvenile frogs. The first cycle of juvenile frogs will be raised by the selected PAHs and bought by NTPC to distribute to involved PAHs to begin the market cycle. Continuous technical knowledge and marketing training will be provided for the PAHs to promote sustainable livelihood as after one year of implementation PAHs are required to provide their own inputs from profits. This strategy provides an opportunity for other PAHs to gain an understanding of how to maintain frog pens and raise frogs for consumption and sale. Aquaculture Aquatic resources are an integral component of most upland Lao people's livelihoods providing food, employment and income, and thus play a dominant role in many poverty reduction programs. The wild fish population is under serious threat due to over-fishing, and the flow regime change in the Xe Bang Fai River after COD together with the subsequent change of water quality will have an additional impact on the fishery. The demand for raised fish will increase substantially over the next few years. This provides a good opportunity for PAHs to be involved in aquaculture and take advantage of the demand market. NT2 Project affected farmers are supported in the establishment of fish ponds as well as raising fish in rice fields. Initially existing ponds will be improved by: 1. Emptying existing ponds and extracting all fish to ensure that predatory species have been removed, 2. Disinfecting the ponds by liming; and, 3. Providing fencing material to protect the pond from predators. The project will also support PAHs involved in the aquaculture strategy to dig new ponds. All PAHs Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1-General Information October 2007 NTPC will provide fingerlings and inputs for PAHs until they sell fish, at least for the first cycle, providing the PAH with capital for the succeeding cycle. Continuous technical and marketing training will be provided for the PAHs to promote sustainable livelihood and disease free fish stock. 6.3.4.8 Non-agriculturebased skills and small scale business Due to the limited land availability, non-agricultural livelihood restoration options are explored and also developed. Construction of Nam Theun 2 hydroelectric facilities will require a substantial number of skilled and unskilled labourers. This demand for labour will diminish prior to COD as major civil works are completed, with very little demand for labour during the operational phase. During the construction phase it is important for local people in general and PAHs in particular to prepare for the post- const~uctionperiod by seeking means to maintain their non-agricultural income through other employment or investment in small scale businesses. Non-formal training in non-agricultural based trades provides necessary skills and knowledge to help in this process, and additional support mechanisms for the initial start-up of household businesses can be implemented. The actual conditions in affected communities are faced with additional challenges related to ethnicity and educational background. Around 75% of the PAHs are of the Makong ethnic group. The literacy rate, especially among the female Makong population is low and presents a serious constraint to their access to formal or education. The operation of small-scale businesses is traditionally the domain of the female members of a household. Non-agricultural based options In line with PAH priorities, non-agricultural livelihood options will focus on training for: 1. small-scale business and trade, 2. handicraft (weaving, basket making, etc.) and, 3. trade skills development (construction, plumber, electrician, carpenter, mechanic, beautician, etc.). The Khammouane Vocational Centre in Thakhek is a well equipped and staffed training center for craft skills where PAHs could obtain skills training such as sewing, hairdressing, basket weaving and food preparation among others. NTPC will provide repeated training and the necessary equipment for starting new businesses. This activity is focused more for women or disadvantaged PAHs unable to work the field the other options Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1-General Information October2007 Activities Cost production Yield Unit sale Total gross Net income Kip price income LAK LAK Fish Cat fish 2500pcs 2 690 000 3864kg 16000 6182400 2 910000 (x2) Carp 1500pcs 1975 000 2625kg 16000 4200000 2 225000 Frog 2500 pcs 2 055 000 134kg+sm 12000+ 4 612 800 2 557 800 (x2) Forage , 1575000 4 calves 1500000 6000000 4 425000:2 , I Pig 2 animals I I 900 000 1 IO~iel+2A 1 I~OOOO+ 3600 000 1 I 1 700- Mushroom 1500bags 471 500 / 231 kg 1 15000 1 3 465 000 ( 2 993 500 (x2) Rice 2600000 1 2500kg I 2000 1 5 000000 1 2 400 000* 1 Cash crops in dry season ] 170000 1 280kg 1 4667 1 1 200 000 1 1030 000 1 Negetable Land Development 188000 ( mixed 1 mixed 1 3262 000 1 3 074 000 (MixedgardenRJTFPIjatrofa 1 695 500 1 mixed 1 mixed 1 8684 000 1 7 988 500 1 (max in year 5 ) 2 427 000 mixed mixed 4 250 000 1873 000 I I I I P Table 6. LivelihoodActivity Financial Projections It is projected that taking into account each PAHs income lost and the number of activities they are involved in, the PAHs are able to maintain pre-project level income, and in some cases, exceed this. 6.3.4.10 Final Cash Compensation As previously discussed, significantly affected PAHs are also able to request for final cash , compensation in lieu of livelihood restoration activities. In order to avail of this option, the PAH must exhibit that they will utilize the compensation provided for livelihood related activities sustainably. The process for PAHs affected more than lo%, requesting cash compensation for assets lost follows a 5 step approach: 1. PAH requests for cash compensation 2. DWG and RMU assesses if the PAH is eligible for Final Cash Compensation according to 5 criteria established by DWG and RMU 3. If eligible, the PAH, with help from PL staff and DWG, will make a Family Livelihood Restoration Proposal that needs to be approved by DWGIRMUMTPC 4. Payment of proposed activities 5. Monitoring PAH request A PAH impacted more than 10%that wants cash compensation in stead of participation into the livelihood program should submit a request to the DWG. Government of Laos Selection Criteria Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1- General Information October 2007 Family Livelihood Restoration Plan (FLRP) Each PAH will be required to plan for a way to restore their own livelihood. The expected annual income of the activity should be at least equal to the annual income lost. The PAH will be assisted by a team composed of DWG and NTPC on how to prepare the plan, but the PAH is required to formulate their own ideas. If more funds are required for the planned activity than the total cash compensation value for lost assets, then the PAH should present a financing plan. If not all funds are required for restoring lost annual income, additional funds can be spend as the PAH whishes on other activities. Motorbike and Mobile phone can be considered an investment expenses if market access / information is required for a small enterprise. The FLRP will be tested on internal consistency, practicality of implementation, estimated success rate of the business and level of livelihood restoration by a committee comprising DWG, RMU and NTPC. Planning will be done in 3 successive steps. First, after attending the initial consultation meeting, each PAH will be requested to make an initial plan of how they intend to restore their livelihood. Following the initial plan, more discussions will take place with each individual PAH, to fill in a form which looks into the income generated fiom the LR plan. In the third round of consultation, a final form will be used to summarize the LR plan. Consultation with PAH will be performed by a team consisting of the following 4 people: 1. District Finance Department 2. District Agriculture and Forestry Office (DAFO) 3. District Lao Women's Union (LWU) 4. NTPC Project Lands family finance consultant. Payment RMU will make full compensation payment into a personal bank account (BCEL - GML branch) in the name of the PAH. Signatures of both partners will be required to make cash withdrawals. Monitoring Regular monitoring, monthly for the first 6 months, thereafter quarterly, will be conducted by the family finance trainer and the DWG, to assess the progress of livelihood restoration by the PAH. If required, advice or additional training will be provided to facilitate livelihood restoration. If the PAH cannot prove to DWG's satisfaction that they will utilize the cash for livelihood, then they will be required to continue with livelihood restoration measures to restore pre-project level income. 6.3.4.11 Social support measures Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume 1-General Information October 2007 For adjusting existing or establish new livelihoods alternatives, there is a need to ensure that these activities are suitable for rural women and sensitive to the division of labour. Rural women in Laos like elsewhere in South East Asia are the backbone of agricultural production, processing and marketing, of domestic work and household economy. They are responsible for health, nutrition, water supply and feeding of their families. With more and younger men migrating to town and city centres seeking more profitable employment opportunities, women become increasingly involved in work which was traditionally men's work, such as land preparation, irrigation, planting and harvesting. Separate meetings with female PAHs revealed that major interests regarding livelihood alternatives rests with rice production, small livestock raising (poultry), mushroom growing, vegetable production, weaving and collection of NTFP. 6.4 Infrastructure Replacement and improvement 6.4.1 Houses and other fixed structures PAHs that lose their house plots are entitled to receive a new house or to rebuild their existing houses on a new plot with the support of NTPC. PAHs that lose fixed structures will also receive a new structure or be compensated in cash for the loss. Cost for material, labour, transportation and other directly related cost for either the new house or the dismantling and rebuilding of the existing houses and other structures is paid for by NTPC. The minimum housing area has been set at not less than the current house area or 14m2of housing area per person. Impacted houses and fixed structures that have electricity connections, electricity supply and electricity fittings will have the same fittings restored as well as domestic water supply to at least the standard of current water supply. 6.4.2 Water supply Wells that are affected by the NT2 Project-related construction work are to be replaced and restored to at least pre-project levels. Nam Theun 2 HydroelectricProject ResettlementAction Plan Volume 1 -General Information October 2007 Common Property Common property Restoration1 Replacement Figure 7. Compensationflowchart for impacted commonproperty 6.5.1 Common property structures Inigation structures, electricity lines, roads, tracks and bridges, government buildings (schools, health centres, temples) that are affected by NT2 Project-related construction work are to be fully restored or replaced to at least pre-project levels. 6.5.2 Common property resources In case where villages have lost more than 10 percent of their NTFP gathering area, a lump sum cash payment equivalent to 7 years of the value of impacted (lost) NTFPs is deposited into the village development fund. Domestication of some NTFPs can be found within the framework of the livelihoodrestoration program. 6.6 Allowances and Transitional Measures All impacted PAHs receive a one-time paid Disturbance Allowance of Kip 150,000 per household, including those living along the road. RAPS 1, 2, 3 and 5 allocate 150,000 Kip per person within the project affected household whereas in RAP 4, disturbance allowance provided is 150,000Kip per Project Affected Household. Nam Theun 2 Hydroelectric Proiect Resettlement Action Plan Volume 1-General Information October 2007 7 Monitoring and Evaluation 7.1 Introduction Monitoring and evaluation is an important and integral part of any project or program carried out. Its role is to provide information that allows for successhl adaptive management and is a tool to disseminate information. Information is usually collected in different forms and formats depending on the need of the user of the data, which in turn can possibly create inconsistencies regarding data compatibility and relevance. Construction related data serves different purposes to Social and Environmental related collected data. Also, expected changes and modification during project implementation with regards to utilized Land Parcel Areas (LPAs) and the number of affected assets will need to be well documented for monitoring purposes. Maintaining a database and recording the changes will prove to be beneficial for long term monitoring and evaluation. To ensure that the Project Land program is implemented successfully and that the villagers materially improve their livelihood after resettlement, a monitoring program will be implemented consisting of two components, internal and external: Internal monitoring will be conducted by the GOLIRMU and the NTPCIRO as a tool to assist in tracking progress and identifying problems during implementation and making necessary adjustments. External monitoring will be conducted by teams of independent monitors, who will use the internal monitoring data and possibly gather primary data to assess whether resettlement objectives have been met, such as assess resettlement efficiency, effectiveness, impact and sustainability, and whether resettlement entitlements and procedures were appropriate for meeting the objectives, and provide recommendations on necessary changes to the plans. The details of the overall monitoring approach is described in a document on the monitoring framework of NTPC. A summary of specific aspects for PL is provided below. 7.2 Internal monitoring 7.2.1 Monitoring activities The main monitoring activities will include: 1. Monitoring of detailed planning: Tracking the progress of the inventory of losses, registration of these losses and PAH (the Baseline Study), consultations with PAH, the preparation and disclosure of updated Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1 -General Information October 2007 Process monitoring is conducted to ensure that the consultation activities are being implemented, with due regard to gender and ethnic differences; and to ensure and record the effective implementation of the grievance mechanism. The main aim of the internal monitoring is to identify any problems with implementation and report those back to management for corrective action if needed. While outcome process monitoring will be the primary responsibility of the External and Independent Monitoring Agency, the internal monitoring teams will be required to obtain the socio economic data to measure the progress being made towards restoring land-based productivity andor income levels. This is done via a Living Standard Monitoring type survey. The survey focuses on the impacts brought about by the NT2 project, the compensation packages that the PAHs have or will receive and the processes in which the PAHs were informed about the project. This is captured through a random sampling survey of PAHs affected less than ten percent and a census of those affected more than ten percent. Questions asked are focused on the following topics: 1. Household information- Queries on the status of the household and other general information. 2. Infrastructure Replacement/Impact- Queries regarding replaced infrastructure and project impacts. 3. Grievance- Queries regarding the grievance procedure. 4. Consultation- Queries regarding the consultations held and the information disseminated to the PAHs. 5. Livelihood Restoration- Queries regarding the livelihood restoration activities provided and the results of these. This section ,alsoinquires about the satisfaction of the PAHs involved in these activities. 6. Compensation- This section tackles the different types of compensation PAHs have received. 7. Expenditure and Consumption- Queries to obtain purchase trends and changes in expenditure. 8. Subjective Wellbeing- Queries regarding PAHs present situation. The survey aims to assess PAHs situations and obtain feedback regarding the strategy implemented by the Project Land Office. The survey will also provide guidance on components that are still being implemented by the Project Land Office. 7.2.2 Gender and ethnicity related monitoring Monitoring will include the collection of data based on ethnicity indicators. This involves disaggregating information based on the different ethnic groups to ensure that smaller and more vulnerable minorities, especially in villages of mixed ethnic identity, are monitored. Likewise, all data collection will be gender disaggregated, and gender specific monitoring will involve an ongoing evaluation of gender roles and the division of labour at the level of the household in order to ensure that either men or women are not overburdened by new tasks in relation to previous labour practices. Nam Theun 2 HydroelectricProject Resettlement Action Plan Volume 1-General Information October 2007 A transitional monitoring system to be implemented during the construction period has been designed and is already in operation for some components such as the UXO Survey and Clearance Program, which has already begun. Information will be collected on the numbers and types of in and out- migrants during this period. Special attention will be placed on identifying the types and motives of camp followers in order to identify any potential socially-unacceptable activities which may develop. District authorities will be responsible for monitoring in and out-migration throughout the extensive construction areas. Training and capacity development is already being provided to district authorities by the RMU in preparation for their monitoring role. 7.3 External monitoring The Concession Agreement requires an independent assessment of whether the specific objectives for Project Affected Household have or will be met, and whether actions taken adequately address the mitigation and compensation requirements. These assessments will be made by two independent monitoring and evaluation bodies: - An Independent Monitoring Agency (IMA) consisting of a team of individuals with extensive experience in resettlement planning, implementation and monitoring, socio-economic survey and analysis, rural development and environmental impact assessment, composed of both Lao national and international experts, and - a Panel of Social and Environmental Experts (POE), who will act independently of both GOL and NTPC and in accordance with relevant World Bank guidelines, assessing whether mitigation measures and resettlement procedures adequately protect both the environment and the interests of those affected by the ~rojece. Project Land Budget The budget for all activities within Project Land is as follows: Project Land Particulars Budget 2004- COD Project Land (Camp follower and PCR not included) TOTAL Resettlement for Project Land [Compensation Program] 6,188,337 - Nam Theun 2 Hydroelectric Project Resettlement Action Plan Volume I General Information - October 2007 RAP 4 -Road 8 & 12 (GML & MHX Districts) 381,200 RAP 5 - 115kV & 500kV transmission lines 384,459 Program Management 1,378,820 Table 7. Project Land budget I S8Jnl3rUJS40 UO!J JOP!JJOO / Sl8MOJ - s a u n u o p ! S d V d %OL< A/ddn.S JeJRM JUe - - sesnoq Jueuewd ( ~ 8 P0~ Q ~ ! I ~ 4'A S d V d %01> uosred l e d ' s d w S d V d %OL< u 11 ( A e a P ~ O V ! I ~ A - S d V d %01> , ( ~ e Pa~ ~ V ! 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