technical assistance consultant’s report · 11. translation of draft letter from song thang...

Technical Assistance Consultant’s Report

Project Number: 36352 May 2005

Socialist Republic of Viet Nam: Song Bung 4 Hydropower Project Phase I

Prepared by Jeremy Bird, Jay Roop, and Be Quynh Nga

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and

Government cannot be held liable for its contents. ADB and the

Song Bung 4 Hydropower Project, Vietnam

ADB TA 4475-VIE: PPTA Phase I

REPORT

on

WATER RESOURCES, ENVIRONMENTAL AND SOCIAL ISSUES

prepared for the

ASIAN DEVELOMENT BANK

and the

GOVERNMENT OF VIETNAM

FINAL REPORT

5 May 2005 Consultants:

Jeremy Bird Jay Roop

Be Quynh Nga

CONTENTS

ABBREVIATIONS AND ACRONYMS......................................................................................V

EXECUTIVE SUMMARY .......................................................................................................VII

1. INTRODUCTION ............................................................................................................ 1

2. PROJECT CONTEXT AND DESCRIPTION................................................................... 2 2.1 Sector Context .................................................................................................. 2 2.2 Introduction to the Vu Gia – Thu Bon Basin ..................................................... 4 2.3 Project Description............................................................................................ 6

2.3.1 Proposed Project Layout and Operation ........................................ 6 2.3.2 Socio-economic Setting.................................................................. 7 2.3.3 Environmental Setting .................................................................. 10

2.4 Consultations Undertaken .............................................................................. 11 2.5 Spatial Context ............................................................................................... 12

3. INSTITUTIONAL SETTING .......................................................................................... 13 3.1 Institutional Context for Hydropower Planning................................................ 13

3.1.1 Electricity of Vietnam.................................................................... 13 3.1.2 Stakeholder Analysis.................................................................... 14

3.2 Institutional Reforms in Water Resources Management and Status of River Basin Organizations .............................................................................. 16

3.3 Institutions Responsible for Environmental Assessment ................................ 18 3.3.1 Institutions Responsible for Reviewing EIA Reports and

Issuing EIA Certificates ................................................................ 18 3.3.2 EVN Environmental Assessment and Environmental

Management of Hydropower Projects .......................................... 21 3.3.3 Institutions Responsible for Preparing Song Bung 4 EIA

Report .......................................................................................... 23 3.4 Institutional Setup for Forest and Nature Reserve Management in the

SB4 Watershed............................................................................................... 25 3.4.1 Institutions Responsible for Forest Management in Quang

Nam.............................................................................................. 25 3.4.2. Institutional Arrangements for Forest Management ..................... 27 3.4.3. Institutions Responsible for Design and Implementation of

the Proposed Quang Nam Biodiversity and Natural Resource Conservation Strategy.................................................................. 28

3.4.4. Institutions Responsible for Managing Anthropogenic Pressures on the Song Bung Watershed ..................................... 28

3.5. Institutions Involved in Resettlement Planning and Implementation............... 29 3.5.1. Responsibility at the Project Level ............................................... 30 3.5.2 Provincial Level ............................................................................ 32 3.5.3. District Level................................................................................. 33

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3.5.4. Commune Level ........................................................................... 34 3.5.5. Other Social Issues ...................................................................... 35

4. WATER RESOURCES MANAGEMENT ISSUES........................................................ 36 4.1 Song Bung 4 Project in the Context of the Vu Gia-Thu Bon River Basin........ 36 4.2 Challenges Facing Basin Management .......................................................... 37 4.3. ADB Policy and Large Dams .......................................................................... 39 4.4 Promoting Institutional Cooperation for IWRM in the Vu Gia Basin................ 40

4.4.1. Institutional Arrangements for Basin Management – Recent Initiatives ...................................................................................... 41

4.4.2. A First Step: Establishing a Water Resources Review Committee.................................................................................... 41

4.4.3. Potential Focus Areas for the Review Committee........................ 43 4.5. Basin Modeling – Optimizing Reservoir Operations ....................................... 44 4.6. Summary of Water Resources Management Recommendations for

Phase II........................................................................................................... 46

5. ENVIRONMENTAL ISSUES......................................................................................... 48 5.1 Environmental impacts associated with hydropower projects......................... 48 5.2 Priority Impacts to Further Study/Address during Phase II ............................. 50

5.2.1 Impacts of the Project on Terrestrial and Aquatic Biodiversity ..... 50 5.2.2 Impacts on Protected Areas......................................................... 51 5.2.3 Impacts on Reservoir Sustainability and management of the

watershed..................................................................................... 52 5.2.4 Impacts on Forest Cover ............................................................. 53

5.3 Assessment of Cumulative Impacts................................................................ 57 5.4 Capacity to Conduct EIAs and Implement EMPs ........................................... 58 5.5 Summary of Environmental Recommendations ............................................. 61 5.6 Indicative Cost Estimate of the Likely Environmental Mitigatory

Measures During Construction and Operation ............................................... 64

6. SOCIAL ISSUES .......................................................................................................... 66 6.1 Social Impacts Associated with Hydropower Projects .................................... 66 6.2 Profile of Project Affected People ................................................................... 67

6.2.1 Resettlement – Villagers in the Reservoir Area............................ 67 6.2.2 Other Directly Affected People ..................................................... 71 6.2.3 Indirectly Affected People............................................................. 71

6.3 Approach to Resettlement Planning ............................................................... 72 6.3.1 Principles Adopted under Vietnamese Regulations for

Resettlement ................................................................................ 72 6.3.2 Existing Consultation Process Relating to Resettlement

Planning ....................................................................................... 76 6.3.3 Concerns of Project Affected People ........................................... 77

6.4 Recognition of Upstream and Downstream Community Interests .................. 78

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6.5 Recommendations for Phase 2 ...................................................................... 80 6.5.1 Consultation Strategy................................................................... 80 6.5.2 Scope of Mitigation Measures...................................................... 83 6.5.3 Capacity Building.......................................................................... 84 6.5.4 Policy Dialogue ............................................................................ 86

7. SUMMARY OF RECOMMENDATIONS FOR SUBSEQUENT STAGES OF PROJECT PLANNING AND DEVELOPMENT............................................................. 88 7.1 Conclusions .................................................................................................... 88 7.2 Recommendations for Planning and Development of the Song Bung 4

Project and Related Activities ......................................................................... 88 7.2.1 PPTA Phase II.............................................................................. 88 7.2.2 Livelihood Development Program ................................................ 90 7.2.3 Pilot Demonstration Activity for IWRM ......................................... 90 7.2.4 Advisory TA Cluster – Policy and Capacity Building ................... 90

ANNEXES

1. PPTA Phase 1 – Consultant’s Terms of Reference 2. Bibliography 3. List of people met 4. Stakeholder analysis – rights, risks and responsibilities 5. Organization Charts (EVN, FPD, STNRMB, DARD) 6. National Procedures for EIA Clearance 7. Institutional arrangements for harvesting forest products under Decision 04/2004/Q 8. Responsibilities of national, provincial and district agencies in resettlement planning

under Decree 197/2004/ND-CP 9. Checklist of ADB Water Policy Implementation in relation to the Project 10. Initiating Integrated Water Resources Management in the Vu Gia-Thu Bon River basin

– Outline proposal for an ADB Pilot Demonstration Activity 11. Translation of Draft letter from Song Thang Management Board to HPPMB3 12. Information on Song Thanh Nature Reserve 13. Priority Projects Identified in the Quang Nam Conservation Strategy 14. Involuntary resettlement policy in Vietnam 15. Notes on visit to A Vuong Resettlement Area 16. Summary of Mission Schedules 17. Photographs (separate file)

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FIGURES

Figure 1: Location of Song Bung 4 and Other Hydropower Projects in Vu Gia –Thu Bon Basin................................................................................................................3

Figure 2: Schematic Representation of Hydropower Projects in the Vu Gia – Thu Bon Basin .......................................................................................................................3

Figure 3: Location of Affected Villages ...................................................................................7 Figure 4: Organizational Chart of Ministry of Environment and Natural Resources .............. 19 Figure 5: Organizational Chart of Quang Nam DoNRE ........................................................ 20 Figure 6: Organization Chart of HPPMB3............................................................................. 24 Figure 7: Process for Obtaining an EIA Certificate for SB4 .................................................. 25 Figure 8: Song Bung 4 Watershed and Boundaries of Forest Management Areas .............. 26 Figure 9: Process for Approving the SB4 Resettlement Plan and Its Implementation........... 31 Figure 10: Interpreted Satellite Image Composite of Quang Nam Province ........................... 51 Figure 11: Encroachment of the Reservoir into Song Thanh Nature Reserve ........................ 52 Figure 12: Direct Threats Ranking Exercise for Quang Nam Province................................... 53 Figure 13: Forest Cover in the Project Area ........................................................................... 56

TABLES

Table 1: Status of Planned Hydropower Projects in the Vu Gia – Thu Bon Basin .................5 Table 2: Population of Nam Giang District ............................................................................8 Table 3: Ethnic groups in Nam Giang District in 2003 ...........................................................8 Table 4: Spatial Context...................................................................................................... 12 Table 5: Summary of Roles of Key Agencies and Stakeholder Groups............................... 14 Table 6: Institutional Framework for Managing Anthropogenic Pressures on the Song

Bung Watershed ................................................................................................... 29 Table 7: Type, Quality and Quantity of Forest Land to be Cleared...................................... 55 Table 8: Proposals for Strengthening Capacity for Environmental Assessment and

Management ......................................................................................................... 59 Table 9: Indicative Costs for Environmental Mitigation plan ................................................ 64 Table 10: Population of the Directly Affected Villages – Resettlement (up to end of

January 2005) ....................................................................................................... 68 Table 11: Productivity of Some Main Crops in Zuoih Commune, 2004 ................................. 69 Table 12: Total Output of Husbandry Sector of Zuoih Commune, 2004 ................................ 69 Table 13: Comparison of ADB Resettlement Policies with Vietnam Policies......................... 75 Table 14: Focus Areas for Consultations .............................................................................. 80 Table 15: Proposals for Strengthening Capacity for Social Assessment and

Management ......................................................................................................... 84

The views expressed in this draft report are those of the authors and do not necessarily reflect the official position of ADB or the Government of Vietnam or any of its agents.

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ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank bcm billion cubic metres CIA Cumulative Impact Assessment CPRGS Comprehensive Poverty Reduction and Growth Strategy DANIDA Danish International Development Agency DARD Department of Agriculture and Rural Development (provincial) DoF Department of Finance (provincial) DoI Department of Industry (provincial) DPI Department of Planning and Investment (provincial) DoNRE Department of Natural Resources and Environment (provincial) DoT Department of Transport (provincial) DWRM Department of Water Resources Management (of MoNRE) DPC District People’s Committee EIA Environmental Impact Assessment EMP Environmental Management Plan EMDP Ethnic Minority Development Plan EMS Environmental Management System EVN Electricity of Vietnam FAO United Nations Food and Agriculture Organisation FHD Foliage Height Density FPD Forest Protection Sub-Department (provincial) FS Feasibility Study GMS Greater Mekong Subregion GoV Government of Vietnam HCMC Ho Chi Minh City HPPMB3 Hydropower Project Management Board No 3 (of EVN) IP Indigenous Peoples IWRM Integrated Water Resources Management kV kilovolt LDP Livelihood Development Program mcm Million cubic metres MARD Ministry of Agriculture and Rural Development MoI Ministry of Industry MoNRE Ministry of Natural Resources and Environment MoSTE Ministry of Science, Technology, and Environment MOSAIC Management of Strategic Areas for Integrated Conservation (WWF program) MPI Ministry of Planning and Investment MW megawatt NHP National Hydropower Plan NWRC National Water Resources Council NWRS National Water Resources Strategy ODA Overseas Development Agency PAP Project Affected Person / People PAH Project Affected Household PDA Pilot Demonstration Activity PECC3 Power Engineering Consulting Company No. 3 (of EVN) PFS Pre-feasibility Study PMU Project Management Unit PPC Provincial Peoples Committee PPTA Project Preparatory Technical Assistance QN Quang Nam (province) RAP Resettlement Action Plan RBO River Basin Organization RCC Roller Compacted Concrete ROW Right of Way SIDA Swedish International Development Agency SB2, SB4, SB5 Song Bung hydropower projects nos. 2, 4 and 5

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SFE State Forest Enterprise SSTA Small Scale Technical Assistance STNRMB Song Thanh Nature Reserve Management Board TOR Terms of Reference TWh Terawatt hours UXO Unexploded ordnance VEPA Vietnam Environmental Protection Agency VP Vice President VWRAP Vietnam Water Resources Assistance Project WB World Bank WCD World Commission on Dams WWF WWF International

Acknowledgements Considerable assistance was provided to the Consultants by a wide range of organizations and individuals in providing information, arranging meetings and making the necessary logistical arrangements for the valuable field visits. Appreciation is due to all those that contributed but are too numerous to mention by name. Thanks go to the staff of EVN, HPPMB3, PECC3, other line ministries in Hanoi (MoI, MoNRE, MARD), a wide range of provincial agencies in Quang Nam and Da Nang provinces and the officers of Nam Giang District. Particular gratitude is owed to the people of Zuoih Commune who provided an insight into the issues affecting them. Staff of WWF MOSAIC program, National Hydropower Plan Study, and ADB TA 3528 also deserve considerable thanks for their cooperation and sharing their information. At ADB, we would like to acknowledge the assistance of project staff and mission members from Manila and VRM as well as the support staff who assisted with meeting arrangements and contractual matters.

Jeremy Bird, Jay Roop, Be Quynh Nga

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EXECUTIVE SUMMARY

The planned 165 MW Song Bung 4 Hydropower Project is located in the mountainous region of Quang Nam province in central Vietnam. It will involve the construction of a 120m high dam, pressure tunnel to a power station located about 4 km downstream and dual 220kV transmission lines to Da Nang. It is one of eight large-scale hydropower projects planned by Electricity of Vietnam for the Vu Gia-Thu Bon Basin to be implemented in the next 5 years. Impoundment of the reservoir will require the relocation of approximately 940 people predominantly from the Ca Tu ethnic minority.

A feasibility study, resettlement plan and environmental impact assessment for the Project are under preparation by the Government and are expected to be approved in early 2006. Construction is scheduled to begin in 2007. ADB has been requested to support the financing of the project. As an initial step in its planning and appraisal process, ADB financed a small-scale technical assistance to assess a number of issues related to water resources planning and management in the basin, environmental issues and social issues. This Phase I of ADB’s project preparatory technical assistance (PPTA) is the subject of this report. Output from Phase I will be used to inform the scope of the Phase II study, during which the environmental impact assessment, resettlement action plan, ethnic minority development plan and other requirements of ADB policies will be prepared. Phase II of the PPTA is scheduled for approval by ADB in June 2005, with mobilization of consultants in September 2005.

The scope of Phase I included the institutional framework for management of water resources in the basin including the possible role of a river basin organization; identification of stakeholders involved in planning and management of basin water resources; issues related to participatory watershed management; preliminary identification of social and environmental impacts including cumulative impacts; identification of threats to protected areas, including the need for and extent of compensatory forestry; outline of a consultation strategy; consideration of the scope of livelihood development support; and the need for capacity building for implementation of environmental and social mitigation measures.

A fact-finding field visit for Phase I was undertaken in January 2005 followed by a presentation of the issues to ADB staff in Manila. The Consultants’ preliminary draft report was subsequently reviewed by ADB project staff in February 2005 and a second field visit was made in March 2005. This culminated in Hanoi on 21 March 2005 with a wrap up discussion involving EVN, other line ministries and the ADB. This report outlines the prevailing regulatory framework for water resources, environmental and social issues, and GoV processes for approval of environmental impact assessments and resettlement plans; identifies the institutional context within which the project is being planned; and makes recommendations for Phase II.

Based on this review, the Consultants concluded that the issues identified can be addressed to meet the requirements of ADB safeguard policies and that there is scope in the current planning process to introduce the necessary enhancements to the project design and planning of social and environmental mitigation measures. ADB involvement would provide an opportunity to incorporate livelihood improvements and poverty reduction measures for the affected population, to take a pro-active approach to offsets for biodiversity protection and compensation of habitat loss, and to enhance the formulation and implementation of the environmental management plan.

Areas for particular focus in the environmental and social assessment components of Phase II of the PPTA are outlined in Sections 5 and 6 of the report. On environmental issues, they include studies to establish baseline information on aquatic resources, mitigation measures for loss of forest cover, assessment of cumulative impacts, mitigation of impacts to the Song Thanh Nature Reserve, studies to address identified threats in the watershed to the sustainability of the reservoir (particularly gold mining and road construction), and capacity building for agencies involved with environmental assessment and management. On social issues, attention is drawn

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to the specific lifestyle, traditions and needs of ethnic minorities and the requirement to plan and design mitigation measures recognizing cultural sensitivities. In particular, livelihood opportunities need to be identified including access to, and sustainable use of, forest resources. The scope of direct impacts on upstream and downstream communities due to changes in river flow and water quality is identified and raised as an issue as government policies do not currently recognize such groups as eligible for compensation. An outline consultation strategy is proposed to be considered in more detail by Phase II consultants in preparing the Resettlement Action Plan, Ethnic Minority Development Plan, Gender Action Plan and Public Health Action Plan and for conduct of the Environmental Impact Assessment.

As one of four projects in the Song Bung sub-basin it will not be possible to disaggregate the social impacts related to loss of aquatic resources in the river system. There are also likely to be other, less well-defined, indirect impacts of the project, some of which will be positive and others negative. To satisfactorily address the negative impacts, a separately financed Livelihood Development Project is proposed for the Song Bung sub-basin.

Existing capacity for assessment of social and environmental impacts and management of mitigation plans is considered limited and programs are proposed for institutional strengthening at two levels. The first relates directly to project impacts and would be financed though the Project. The second relates more to the institutional level including policy development and the organizational structure and staffing of EVN and its subsidiary agencies. These would be supported through a separate technical assistance program.

Concerns raised by ADB over the sectoral approach to planning of water resources in the Vu Gia – Thu Bon basin are considered valid and there is considerable scope to introduce the principle of integrated water resources management, raise awareness and knowledge about the importance of other uses of the rivers’ resources in the basin that are not currently prominent in the planning process, such as riverine fisheries, and develop recommendations to introduce a more comprehensive approach. At the same time, the study found that, whereas there will be local adverse impacts to be addressed in the next stage of processing, the plan for hydropower development in the basin does not conflict with other basin-wide planning initiatives. Rather it provides secondary benefits for flood management, dry season irrigation and salinity management.

A Pilot Demonstration Activity (PDA) is proposed to facilitate establishment of a Water Resources Review Committee for the Vu Gia Basin as a first step to promoting cross-sectoral dialogue on integrated water resources management. The initial meetings of the Committee will determine the need for a river basin organization and plan for its development. In parallel, a computer simulation of the water resources in the basin is proposed under Phase II to develop a better understanding of the scale of future impacts and opportunities for optimizing reservoir operation rules. This would then feed into national level discussions on environmental flows that are taking place as part of the development of the National Water Resources Strategy. A related study by the Ministry of Natural Resources and Environment (MoNRE) to develop guidelines for hydropower licensing, as required by a recent decree under the Water Law, will be conducted over the next two years. It will provide insight into how new concepts to Vietnam such as integrated water resources management and environmental flows will be operationalized. Close coordination will be required between the PPTA Phase II, EVN and the team preparing the guidelines.

Beyond the boundaries of the SB4 project, a range of broader policy focus areas were identified for dialogue between ADB and Government of Vietnam (GoV). These include the opportunities for benefit sharing for affected communities through a share of project revenues and financial provisions for protecting the operational life of reservoirs through watershed management services. Establishing corporate environmental and social policies for EVN is proposed as a component of the capacity building measures.

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1. INTRODUCTION 1. Building on ADB’s past support in the field of power transmission, the Government of Vietnam (GoV) in 2003 requested ADB to consider financing power-generating infrastructure to meet the rapidly increasing demand for electricity in the country. Subsequent discussions on GoV priorities led to agreement to include a project preparatory technical assistance (PPTA) in the country program for the Song Bung 4 (SB4) Hydropower Project located in the Vu Gia – Thu Bon River Basin in Quang Nam province, central Vietnam. 2. Acknowledging both the considerable challenges facing hydropower development and the significant advances made over the past decade in planning and development of such projects, ADB and Electricity of Vietnam (EVN) agreed to a two stage approach to project preparation. The first phase – the subject of this report – provides an opportunity to scope the potential issues related to water resources management, the environment and social development. Output of Phase 1 of the PPTA includes the detailed terms of reference (TOR) for the Environmental Impact Assessment (EIA), Social Assessment, compensatory forestry plan, and participatory watershed management plan;1 a stakeholder analysis that identifies communities that will be affected by the SB4 project and associated mitigation measures; a strategy for participation during Phase II; and a proposal for introducing the principles of integrated water resources management. The TOR for Phase 1 are given in Appendix 1. 3. Phase II of the PPTA will undertake the social and environmental assessment, technical review and economic analysis and in doing so will examine the issues identified here in more detail, build on the outputs of GoV’s planning process, prepare the project for ADB financing, and ensure that ADB safeguard policies are accommodated in the design. The current schedule envisages approval of the Phase II PPTA in May-June 2005 with mobilization of consultants in September 2005. 4. The project setting and description are introduced in Section 2 of the report together with a categorization of the spatial context within which the various issues are examined – from project level to basin level. This is followed by a description of the institutional setting for hydropower planning, water resources management, environmental assessment and management, forest management, and resettlement planning in Section 3. Each of the specific aspects examined on water resources, environment and social issues together with recommendations for Phase II are described in Sections 4, 5, and 6 respectively. A summary of the recommendations and proposals for financing modalities are presented in Section 7 together with the Consultants’ overall conclusion on the appropriateness of Song Bung 4 for further processing in ADB’s Vietnam program.

1 TOR were communicated separately to ADB.

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2. PROJECT CONTEXT AND DESCRIPTION 5. The following description has been summarized from information provided in EVN’s Master Plan 2000-2010, the National Hydropower Plan, SB4 pre-feasibility study and other documents listed in the Bibliography in Appendix 2. 2.1 Sector Context 6. Demand for electricity in Vietnam has grown at a rate of approximately 15% over the past 5 years and this rapid growth, linked to 7-8% annual growth in the domestic economy, is expected to continue with power sales and maximum power demand expected to reach 80.4 terawatt-hour (TWh) and about 17,000 megawatt (MW) by 2010 – approximately double the current figures. Installed capacity is currently about 9,000 MW, of which 46% is generated from hydropower and the remainder from fossil fuels (gas, coal and oil). Usable hydropower potential in Vietnam has been estimated at 14,000 to 17,000 MW. EVN is the dominant provider of electricity in the country, responsible for over 90% of the current generating capacity. In 2003 EVN added more than 1,000MW generating capacity, 4,367 km of power lines and 5,819 MVA transformer capacity.2 EVN claims to supply electricity to 98% of all districts, of which 93% of communes have access to the national grid. 7. EVN’s Master Plan for the period 2000-2010 identifies the importance of expanding hydropower along with other generation technologies and efficiency improvements in the sector to meet the country’s future electricity needs. This master plan for the electricity sector is currently being updated by the Institute of Energy and will take into account the findings of the National Hydropower Plan (NHP) Study and other developments. The NHP has applied technical, economic, social and environmental screening criteria to a range of projects across the country. The report of Phase 3 of the NHP process, which includes the Vu Gia – Thu Bon Basin, is scheduled for mid-June 2005. Eight projects comprising approximately 1,100 MW are recommended in the draft NHP for development in the basin, including Song Bung 4. A Vuong is now under construction and SB4 project is included in EVN’s plan for power development as a priority project scheduled for operation in the period 2008-2010. The location of the projects is depicted in Figure 1 and a schematic representation showing proposed diversions through the power tunnels is shown in Figure 2.

2 See http://www.evn.com.vn/default_e.asp

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Figure 1: Location of Song Bung 4 and Other Hydropower Projects in Vu Gia –Thu Bon Basin

Source: NHP

Figure 2: Schematic Representation of Hydropower Projects in the Vu Gia – Thu Bon Basin

GULF OF TONKIN Vu Gia

Thu Bon

Song Bung

A Vuong

Song Bung 5

Song Con 2

Dak Mi 4

Song Bung 2

Song Bung 4

Dak Mi 1

Song Tranh 2

River Power diversion

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2.2 Introduction to the Vu Gia – Thu Bon Basin 8. Located in central Vietnam, the Vu Gia – Thu Bon Basin lies between the Truong Son mountain range on the border with Lao PDR in the west and the Gulf of Tonkin in the east: a coastline that includes Da Nang, the third largest city in Vietnam, Hoi An – an historic centre and popular tourist attraction, and Tam Ky, the provincial capital of Quang Nam. The two major river systems, Vu Gia and Thu Bon, join approximately 36km upstream of the coast and are contained within the administrative borders of Quang Nam and Da Nang with a catchment area of 11,510 km2.3 Upstream of the confluence with the Thu Bon, the Vu Gia River splits, with the main channel reaching the sea at Da Nang, and the minor channel joining the Thu Bon to reach the coast at Hoi An.4 A more detailed description of the Vu Gia – Thu Bon Basin is given in the NHP Study.5 9. There are two distinct topographic zones in the basin – the relatively narrow mountainous area with maximum elevation of 2,600 m that features a large number of steep tributaries, and the flat coastal zone prone to annual flooding and opening up to a complex interconnected coastal river system. Both zones are in the order of about 50 km wide. The combined flows of the Vu Gia and Thu Bon rivers, close to their confluence, range from a mean monthly low of 104 m3/s in the dry season (January to August) to 1,356 m3/s in the wet season (September to December). There is significant inter-annual variability of flows across the basin. Total annual rainfall ranges from about 2,000 mm in the central and downstream areas to more than 4,000 mm in the southern mountainous areas, with the average for the SB4 catchment being 2,650 mm. Estimates of daily flood flows in the estuarine plain are of up to 20,000 m3/s leading to flooded depths of 3 to 4m. 10. SB4 is located on the Bung River a few kilometers upstream of the confluence with the A Vuong River and is one of eight planned hydropower projects in the basin (Figures 1 and 2). Projects in the Vu Gia Basin include the cascade of Song Bung 2, Song Bung 4, and Song Bung 5; the A Vuong project currently under construction; the Dak Mi 1 and Dak Mi 4 projects on the Khai tributary; and the Song Con project on the Con River. Both the Khai tributary and the Song Con join the Bung River downstream of SB5, although the Dak Mi 4 project involves an inter-basin diversion to the Thu Bon. There is one planned hydropower project, Song Thang 2, in the upper Thu Bon system. Table 1 presents the current status and development schedule for the planned projects.

3 A very small part of the catchment area of some of the upper tributaries of the basin is situated in the

mountainous areas of Kon Tum province but is not considered of significance for management of the basin. 4 In the tropical storm of 2000, a new channel (New Quang Hue River) opened up from the Vu Gia that

significantly altered the flow regime in the coastal plain directing the bulk of the Vu Gia discharge away from Da Nang towards Hoi An. The Government is implementing river training works to restore the original river course with assistance of the World Bank’s Vietnam Water Resources Assistance Project (VWRAP).

5 See NHP Study Phase 2, Inception report, Vol. 2, Chapter 5, dated 27 April 2004.

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Table 1: Status of Planned Hydropower Projects in

the Vu Gia – Thu Bon Basin

Study Status Project / (Consulting Company)

Capacity (MW)

Live Storage Capacity

(mcm)

Cost ($m equiv.) PFS FS

Plan for Construction

A Vuong (PECC2)

210 266.5 250 Approved – Nov ‘01

Approved 2003-2008

Song Bung 2 (PECC3)

108 82.2 117 Approved – Oct ‘04

Due June ’05 Qtr. 3 2006 – 2010

Song Bung 4 (PECC3)

165 468a 220 Being appraised by GoV

Due Apr-Jul '05 2007-2011

Song Bung 5 (PECC3)

85 0 77-100 Due Apr-Jun ‘06 Due May-Aug ‘07 2008-2011

Song Con 2 (PECC3)

38 2.2 55 2003 Not known Project owner COSEVCO

Dak Mi 1 (PECC2)

225 223 310 Due May-Aug ‘05 11/06-12/06 PECC2

2008-2012

Dak Mi 4 (PECC2)

196 212.0 213 2003 Not known Project owner changed

Song Tranh 2 (PECC1)

162 521.1 201 2002 FS being appraised

2005-2010

Total 1,189 1,775 a Figure taken from PECC3 pre-feasibility study. NHP states 371 mcm. Need to clarify with PECC3. Other data

from NHP Chapter 5

Source: HPPMB3 and NHP 11. The mean annual flow of the VG-TB is 19.1 billion cubic meters (bcm) of which the active storage of the eight proposed hydropower reservoirs accounts for approximately 9%. This provides a relatively small opportunity for flood management although one that needs to be assessed further. 12. Land use along the coastal plains includes intensive agriculture, mainly rice; the recent establishment of industrial zones that are rapidly expanding particularly around Da Nang and Tam Ky; and tourist resources along the coast, including Hoi An and the historic lands of My Son. Further upland there is a combination of subsistence agriculture and forest land, including almost 100,000 ha of the provincial Song Thanh Nature Reserve. The geology comprises mainly metamorphic rocks, including granite, with numerous fault structures to be considered in siting of the dam and reservoir. 13. On the global scale, the environmental processes of Quang Nam belong to the Annamite Range Moist Forests Ecoregion, but at the regional scale, three smaller ecoregions cover parts of the province; these being the Northern Vietnam Lowland Rain Forest, the Southern Vietnam Lowland Dry Forest and the Southern Annamites Montane Rain Forest.

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2.3 Project Description

2.3.1 Proposed Project Layout and Operation 14. The SB4 project comprises a 120m high dam and reservoir of 468 million cubic meter (mcm) live storage capacity, fluctuating from a dead water level of 192.5m to a flood water level of 233.6m. Reservoir surface area is 18.43 sq km at normal water level of 230m. At pre-feasibility study stage, a concrete-faced rockfill dam was proposed, although more recently, a roller compacted concrete (RCC) construction has been considered. A spillway, 75m long, fitted with 5 radial gates and with design capacity of 12,700 m3/s, will be located in the left side of the dam. Stored water will be released though a 3km long tunnel and 135 m head drop to the power station equipped with two 82.5 MW Francis turbines (see schematic diagram in Figure 2). Discharges from the power station return to the Bung River approximately 4 km downstream of the dam. There is currently no plan for a bottom outlet structure and, apart from periods of flood flow, the reach of the river from the dam to the power station will effectively be dry except for inflows from the three minor tributaries joining the Bung River upstream of the power station and the A Vuong River.6 The catchment area of the reservoir is 1,477 km2, approximately 14% of the Vu Gia-Thu Bon Basin. Dual 220 kV transmission lines, 85 km long, will connect the project to the southern grid in Da Nang.7 15. The Government’s pre-feasibility study (PFS) for the project was carried out by Power Engineering Consulting Company No. 3 (PECC3) based in HCMC and has been submitted to Government for approval, (PECC3, 2004). PECC3 is currently preparing the Feasibility Study (FS), including preparation of GoV’s EIA and undertaking preliminary consultations on the resettlement plan to assess feasibility of relocation within the project area. The Feasibility Study is scheduled to be submitted to EVN for initial comment in May 2005 with approval scheduled for late 2005/early 2006. Technical design of the project will be reviewed during Phase II of the PPTA and there remains flexibility within the current processing schedule to introduce any necessary changes.8 Construction is currently scheduled to commence in 2007 with operation in 2011. 16. Storage of water in the basin’s hydropower reservoirs will to some extent modify the seasonal variability of river flows by reducing flood peaks and increasing current dry season flows. Both are considered as beneficial factors for the floodplain with the possibility of reduced flooded depths and increased availability of water for irrigation in the dry season (see Section 4). As with all the hydropower projects in the basin, electricity generation will respond to demand of the grid which, subject to seasonal fluctuations, is generally characterized by two periods of peak requirements, one in the morning and one in the evening. Return water flows from the power station to the river will therefore have a marked diurnal fluctuation in contrast to the more gradual fluctuations currently experienced in the natural river system. Operation throughout the year will also differ to accommodate downstream irrigation requirements in the dry season and to maintain capacity for flood management in the wet season. The duration of operation listed in the PFS amounts to approximately 47% (4,164 hours per year) with about 80% of its electricity being generated during the dry season.

6 The A Vuong River also has a significantly reduced natural flow downstream of its dam due to the power

tunnel diversion that re-enters the Bung River approximately 5km downstream of the SB4 power station. 7 The alignment of the transmission lines is not yet known. One option is to connect with lines from A Vuong at

Thanh My and follow an existing route to Da Nang. 8 For example, in addition to a change to an RCC construction, consultants for NHP indicated that power system

optimization modeling may require a change to the minimum water level.

7

2.3.2 Socio-economic Setting 17. Song Bung 4 is in Nam Giang District and directly affects the three communes of Ta Bhing, Zuoih and Chaval (Figure 3). Located in the north of the province, Nam Giang is one of six mountainous districts,9 covers an area of 1,836 sq km and, in 2003, had a population just exceeding 20,000. It is composed of one district town, Thanh My, and 8 rural communes comprising a total of 60 villages (see Table 2). Neighboring districts to the north are Dong Giang and Tay Giang, to the south are Phuoc Son and Que Son, and to the east is Dai Loc.

Figure 3: Location of Affected Villages

1km 2km 3km 4km 5km 6km 7km

Chaval Commune Population – 2122 Ethnicity: >50% Ca Tu ethnic minority None to be relocated

Ta Bhing Commune Population – 2505 Ethnicity: >50% Ca Tu ethnic minority Potentially 60 people to be relocated

Zuoih Commune Population – 1310 Ethnicity: Almost 100% Ca Tu ethnic minority 940 people to be relocated

Pa Rum A

Pa Rum B

Pa Di

Thon 2

Power Tunnel Diversion

Power Station

Dam

Highway 14D

(In dark blue)

9 Nam Giang District is situated between the coordinates of 107010' – 107045' eastern longitude and 15025' -

15050' northern latitude.

8

Table 2: Population of Nam Giang District

Commune Population

Thanh My town 6,268

Ca Dy 2,398

Ta Bhing 2,505

Chaval 2,122

La Dee 1,973

La Ee 1,571

Dac Pring 834

Dac Pree 1,130

Zuoih 1,310

Total 20,111

Source: Nam Giang District People’s Committee 18. Ethnic groups represent 79% of the population, mainly from the Ca Tu and Gie Trieng minorities (see Table 3). Other groups include the Muong, Thai and Nung peoples. Following reunification in 1975, a number of Kinh people, the ethnic majority in Viet Nam, moved into the area in larger numbers, particularly to Thanh My. Ethnic languages are widely spoken although there is an increasing knowledge of Kinh in the villages, particularly among men. Traditionally, Ca Tu people live in extended families that include more than two generations. The Consultants were informed by villagers that, according to 1999 GoV policy to divide households, most Ca Tu families have lived in nuclear families.10

Table 3: Ethnic groups in Nam Giang District in 2003

Total Ethnic Group Household People

Female Population

Kinh 832 4,269 (21%) 2,131

Ca Tu 2,141 11,443 (56%) 5,632

Gie Trieng 741 4,305 (21%) 2,148

Other ethnic groups 97 350 (2%) 169

Total 3,811 20,367 10,080 (49%)

Source: Statistical Yearbook of Nam Giang District, and Quang Nam provincial Board for Ethnicity and Mountainous area, 2003

19. Livelihoods in upland areas are based on a pattern of shifting cultivation including rainfed rice, maize, cassava and other crops and are characterized by relatively low productivity and food insecurity. Limited land is available for more intensive double cropping. Average food output per capita in ethnic minority communes is just 240 kg/year. Small scale irrigation is achieved by building low level weirs across streams and diverting water through bamboo pipes and other simple devices. Garden watering often uses water from wells. Livestock rearing including cattle and poultry is based on the custom of natural rearing with limited facilities for disease control. Ca Tu people are also involved in handicrafts at a basic level like weaving, porcelain making, forging, and knitting. The incidence of poverty among Ca Tu people is over 50% compared to the average of 37% for the District. Ten per cent are reported to have insufficient food for 3 to 6 months of the year.

10 Officials from Nam Giang District indicated that they were not following such a policy. This issue and its consequence for resettlement planning should be investigated further in Phase II.

9

20. Similar to other areas in Nam Giang District, fishery is a regular activity in the project area that constitutes an important part of the daily diet for the Ca Tu people.11 Men use casting nets, lift nets, fish pots and fishing rods to catch fish in rivers and streams. Women and children use baskets or their hands to hunt for fish. Although fishing occurs throughout the year, the preferred time is during the dry season when river levels are low and pools exist. Women tend to fish after finishing their work in the fields. Shrimp and fish are also increasingly raised in village ponds. Both capture and culture fisheries are estimated to provide about 20% of total food needs. They are also an important food for ceremonies such as weddings, construction of new houses and the start of the new cropping season. 21. The daily market at Thanh My is approximately 68 km from the Zuoih Commune and takes approximately 2 hours to reach by motorcycle in the dry season. In the wet season the road is often not passable and it takes several hours to walk to the main highway. No local markets exist in the villages and although Kinh people travel to the villages to procure produce, the price paid is low in comparison to the market. Construction of the Ho Chi Minh Highway and national road 14D through Chaval together with opening of the border crossing to Lao PDR will lead to new developments and opportunities within the next few years. 22. Drinking water is obtained through gravity extraction from rivers and streams and is led along bamboo or plastic pipes to very simple gravel filtration systems. There are serious concerns over the overexploitation of surface water for irrigation in the dry season and the pollution of both surface and underground sources by waste water. Reported cases of common diseases related to water in the District in 2003 included diarrhea (1099 cases), dysentery (474), malaria (371), goiter and trachoma (62). 23. Nearly three-quarters of women in Vietnam are active in the agricultural sector, where they have chief responsibility for sowing and planting, crop tending and harvesting, and animal husbandry. Women tend to work fewer hours than men in the formal wage labor market due to their added household and family responsibilities. In Ca Tu families, men are the head of household and their main occupation includes hunting, fishing, and clearing of land for shifting cultivation. Apart from their household and family duties including taking care of children, cooking, fetching water, washing and housework, women also take part in other productive work such as clearing land for cultivation, sowing, gardening and fetching firewood, bamboo shoots, rattan and forest vegetables. They also weave cloth products for their own use or for sale. Despite working longer hours than men, Ca Tu women have a relatively low status in families and in the community. The men generally have the right to take family decisions and participate in public activities. Ca Tu women generally play a limited role in dealings with outsiders. 24. The number of people to be resettled due to the reservoir inundation at normal water level of 230m is 940 people from the 5 villages of Zuoih communes (185 households) – see Figure 3.12 No information is currently available on the extent of resettlement on land required for project construction (project lands), but it is not expected to significantly increase this number. The impacts on these groups and others directly and indirectly affected by the project are described in Section 6.2.

11 Data on fish catches is very limited and uncertain. Surveys will be included in Phase II livelihood analysis. 12 Resettlement plan prepared by PECC3 (May 2004). Clarification should be sought from PECC3 on the

precise level used for determining the number of people to be resettled – whether it was the full supply level of 230m or the flood level of 233m. This needs to be addressed early in Phase II. Also there is a question over the need to relocate 60 people from Ta Bhing (see Section 6).

10

2.3.3 Environmental Setting 25. The SB 4 project area is located in Quang Nam’s Southern Annamites Montane Rain Forest. Mean slope angle ranges from 25o to 30o and mean elevation from 900 to 1000 meters above sea level. The climate of the project area is humid and tropical. It experiences a hot, dry season between April and August; a hot, wet season between September to December; and a mild, dry season between January and March. 26. Vegetation of the project area can be classified as either natural forests – broadleaf evergreen, with their composition and structure depending on altitude, aspect and precipitation – or swidden areas of low scrub, banana plants, and other productive vegetation. 27. Song Bung River has a number of diverse and valuable aquatic habitats. This includes headwaters (maintaining forest cover in key head waters of each sub-catchment), rapids (maintaining such heterogeneous and dynamic environments is critical for species restricted to these areas and species which utilize them for specific stages of lifecycles), and intact lowland rivers. 28. The taxonomy of freshwater fish in Song Bung River is not well known for two reasons. First, there are no known published scientific studies on aquatic species. Second, the nature of eastern slope Annamitic streams (isolated catchments with high habitat diversity that empty directly into the East Sea) lends itself towards high levels of endemism. Hence, extrapolating from species lists in nearby rivers may not provide suitable accuracy for the purposes of fisheries management and endangered species protection. 29. Water quality in the Song Bung River is also not well known. Published scientific studies on basic water quality parameters such as temperature, turbidity, pH, metals, and nutrients were not available during the study period. In the absence of quantitative data, visual observations of rivers in Nam Giang (e.g. Song Thang, Song Bung, Song Cai) along with consultation with local communities in January and March 2005 raised two water quality issues: turbidity and mercury contamination.

i. Turbidity. Individual rivers have markedly different levels of turbidity.13 Some water bodies are clear, others are varying shades of brown. The reasons for the ranges of coloration seem, in order of influence: (i) river-based gold mining14 including machine-operated dredging, river-side excavations and hand-panning;15 (ii) soil erosion and landslips due to poor erosion control design/construction/maintenance on Highway 14D, village roads and access roads; and (iii) natural sediment transport from mountainous areas exacerbated by shifting cultivation. According to local people, turbidity has increased dramatically during the past five years. The significance of this impact is considered to be major negative: most households in the project area previously relied upon surface water for domestic water supply; now many households believe the water unsuitable for domestic use and are having to seek alternate sources (e.g. groundwater).

13 Comparison of turbidity was conducted by observing the confluence and mixing of two or more river

tributaries at a number of locations. 14 Quang Nam DoNRE estimates 10,000 illegal mining operations in Quang Nam at present. 15 Gold mining by dredging re-suspends the river bed: if this bed is contaminated then it will, inter alia, release

the contaminants back into the river. The significance of contaminant release depends upon the composition of the river bed.

11

ii. Mercury. Mercury is a process output of gold panning/dredging operations. Mercury waste will likely either be dumped in the river or released as airborne particles. The significance of this impact in Song Bung is unknown but could be major negative: mercury bio-accumulates up the food chain to fishes, livestock, and humans.

30. Soil quality is generally clay or argillaceous (partial clay). According to local farmers, the soil is of suitable quality for crops of low and medium productivity. Granite is the dominant geological formation in and near Song Bung 4. 31. The main human-induced environmental concerns found in soil and sediment are dioxins and unexploded ordnance (UXO). Agent Orange, a chemical defoliant sprayed on forest areas during the war, remains persistent (especially in sediment) and new generations of local people are still affected by Agent Orange causing disabilities in children. The amount of UXOs in the project area is not well known because much of the land has not been tilled or disturbed in the last 30 years. However, discussions with Van Tuong Military Company revealed that, in general, metal detection surveys near Nam Giang District are about 200 signals/hectare.16 Signals come from a combination of spent artillery shells, equipment remnants, and UXOs. Intact and leaking drums of herbicides are also regularly found and recovered by the military company. 2.4 Consultations Undertaken 32. Procedural requirements of the Government for consultations with affected people on potential infrastructure projects are not as detailed as those of ADB and in the past have focused mainly on interactions between the various representatives of EVN, including those undertaking the master plan and pre-feasibility and feasibility studies, and representatives of the people in the form of the provincial, district and commune level peoples’ committees. This conventional approach has been supplemented by activities under the NHP including two provincial level workshops (termed Type A Stakeholder meetings) and village level consultations undertaken by local institutes as part of developing a stakeholder profile, identifying beneficial and negative consequences and thereby providing input to the social screening criteria, (Type B Stakeholder meetings).17 33. During the period 4-10 July 2004, NHP survey teams conducted participatory rural appraisals in two villages in Zuoih commune and interacted with 37 people from Con Dong village just south of the proposed reservoir and 20 people from Pa Rum A village, one of the villages to be resettled.18 Information was summarized on 20 topics including people’s views about resettlement, ethnicity, host area relations, water related health, directly affected and partly affected people, schools, cultural artifacts, livelihoods and access to water. Seven priority areas were raised as mitigation measures if the project was to proceed. These included sustainable agriculture including irrigation; assistance for agricultural production, diversification and livestock; a system of markets and services; rural water supply; access to upper secondary school in the vicinity and lower secondary school in the commune; electricity connections; and access to forest and use of forest products.

16 Equal to 200 objects per hectare. 17 See NHP, Stage 2 Phase I, Vol. II Annex to Main report Chapter 1. In the case of the Vu Gia – Thu ban basin,

the initial provincial level workshop was held in Tam Ky on 18 June 2004 and the second workshop is scheduled for 26-27 April 2005. The report of the first meeting by facilitators, World Village Foundation, showed a relatively low turnout at the first meeting and limited awareness of the issues. Out of the 29 people at the workshop, four came from Nam Giang District, including the Chair of the Women’s Union.

18 The consultations included two participatory observations, two community mappings, two ecological slice mappings, six in-depth interviews, four focus group discussions and two community discussions (see report prepared by the National Institute of Anthropology for NHP).

12

34. Subsequent consultations between PECC3 and all the communities in the reservoir area focused on identifying the scope for resettlement sites within the neighboring areas. It was clear from the Phase I field visits that there was a high level of awareness of the SB4 project although this was mainly on issues related to resettlement, arising from consultations, rather than on the rationale or feasibility of the project itself. 35. Meetings were held by the Phase I PPTA team in January 2005 and by ADB project staff in March 2005 in the following villages: Thon 2, Pa Dhi, Pa Rum B and Cong Don. They included a meeting with commune officials, open meetings in the village community hall and meetings with villagers in their houses at which others participated. Those people consulted acknowledged the need for such projects to meet national electricity demand, but expressed mixed feelings about the impact that it would have on their lives. Older people in particular are reluctant to move, whilst others expressed a willingness to relocate provided that opportunities for a better life are made available. Feedback from these meetings is reported in Section 6.3.3 and is reflected in the design of the participation strategy proposed for Phase II (see Section 6.5.1). Phase I consultants also made preliminary contact with local representatives of WWF International and the International Rivers Network. 2.5 Spatial Context 36. Throughout this report, reference is made to ‘impacted areas’ and ‘zones of influence’ – ranging from a relatively narrow focus on the Song Bung 4 project area, up to the wider boundary of the Vu Gia – Thu Bon Basin. The classification in Table 4 has been proposed in this report as a frame of reference for these geographic areas within which the discussions on institutions, water resources, and environmental and social issues will take place in the following chapters. The zoning of areas used in the TOR for the environmental impact assessment (EIA) is cross-referenced in the table.

Table 4: Spatial Context

Geographic Area Description Includes Following EIA Zones

Project area Area to be occupied by the civil works associated with the project, formation of a reservoir and resettlement sites.

1- Reservoir area 2- Access roads 3- New resettlement area 4- Construction area and camps

Transmission line corridor

Zone of influence of the new section of the 220 kV transmission line from Song Bung 4 to Da Nang.

8- Transmission line

Watershed Area that drains into Song Bung 4 reservoir (including the area draining into Song Bung 2). A part of the Song Thanh Nature Reserve lies in the southern part of the watershed (see Figure 8).

11- Watershed 12- (part) - Peripheral impact zone

Song Bung River sub-basin

Area that drains into the Song Bung River up to the confluence with the Song Cai. Includes SB2, SB4, SB5, and A Vuong projects.

9- Bung River – upstream of SB4 5- Bung River – dam to power station 6- Bung River - power station to A

Vuong confluence 7- Bung River – A Vuong confluence

to Vu Gia 12- (part) - Peripheral impact zone

Vu Gia River Basin

Area that drains into Bung, Cai and Con rivers and flows to the coast at Da Nang. Includes above projects, Song Con 2, Dak Mi 1 and Dak Mi 4.a

10- Vu Gia to sea 12- (part) - Peripheral impact zone

Vu Gia-Thu Bon River Basin

Area that drains the complete Vu Gia and Thu Bon River systems to the coast. Includes the above projects plus Song Tranh 2.

a A part of the flow from the Vu Gia River joins the Thu Bon River through the Quang Hue River. Dak Mi 4 transfers flow from the Song Cai to the Thu Bon River system.

13

3. INSTITUTIONAL SETTING 37. Planning, approval and implementation of hydropower projects are highly regulated activities in Vietnam, involve a wide range of agencies – albeit through rather segregated rather than integrated mechanisms. As with other infrastructure projects, the governing regulatory framework and approval processes have recently undergone considerable change. Some of these changes require further clarification and implementation guidelines will be developed over the coming months in parallel with further processing of the SB4 project. 38. The following sections outline the role of EVN in hydropower planning and introduce the range of other stakeholders involved (Section 3.1); summarize the institutional reforms for water resources management at national level that will influence planning and operation of hydraulic infrastructure (Section 3.2); and describe the institutional structures for preparation and approval of EIAs and environmental management (Section 3.3), for forest management including a large part of the SB4 watershed (Section 3.4) and for resettlement planning (Section 3.5). A more detailed stakeholder analysis is given in Annex 4. 3.1 Institutional Context for Hydropower Planning

3.1.1 Electricity of Vietnam 39. Electricity of Vietnam (EVN) is a state-owned corporation operating in the areas of generation, transmission, distribution and sales of electric power. Its President and CEO reports to a Board of Management and oversees the work of seven groups, each headed by a Vice President (VP) (see the Organization Chart in Annex 5). 40. Expansion plans prepared by EVN’s Investment Development group in response to overall planning directions set by the Ministry of Industry and EVN’s Board are articulated through a master plan – currently the Master Plan for 2000-2010 which is being updated. Realization of the plans for hydropower generation projects is the overall responsibility of EVN’s Construction Management Department under VP (Generation Construction) with individual project development delegated to one of the generation project management boards, for example, Hydropower Project Management Board No.3 (HPPMB3) in the case of SB4. EVN has four consulting companies reporting to VP (Investment and Development): Power Engineering Consulting Companies (PECC) 1, 2, 3 and 4. They provide services for survey, investigation, design and construction supervision. PECC3, located in HCMC, is currently undertaking the feasibility study for SB4 (see also Table 5). Operation of the SB4 project will be the responsibility of a hydropower operations board to be established for the Vu Gia – Thu Bon projects which will respond to electricity demand as articulated by the National Dispatch Centre A0 (in Hanoi) and Regional Dispatch Center A3 (in Da Nang) that report to VP (Network Operation). The institutional structure of EVN relating to environmental and social aspects are described separately in Sections 3.3 and 3.4. 41. Pre-feasibility studies (PFS) prepared for new projects are submitted by EVN to the Ministry of Industry (MoI) and then to the Prime Minister’s Office where they are circulated to relevant ministries for comment, including Ministry of Natural Resources and Environment (MoNRE) and Ministry of Agriculture and Rural Development (MARD), prior to approval. Approval of the PFS marks a significant step in the process and effectively defines the layout and configuration of the project and constrains the nature of options that be explored in later stages of study and design. In their comments on the PFS for SB4, MARD suggested that a greater emphasis be placed on the multipurpose aspects of the project. The project remains designated as a single purpose project although opportunities for the needs of downstream

14

irrigation and flood management can still be reflected in the operational rules. In the past, the Feasibility Study (FS) has followed a similar approval process although a new decree issued by the Government in February 2005 means that the FS can possibly be approved by MoI alone.19

3.1.2 Stakeholder Analysis 42. The full range of stakeholders involved in the planning and implementation process – government agencies, the project proponent, affected people, financiers and others including non-government agencies – are summarized in Annex 4. For each category of stakeholder, the analysis presented in the annex identifies their rights, risks and responsibilities: rights that are defined through legal and regulatory frameworks as well as customary rights and norms, for example, those of ethnic minority groups; risks that are faced by the stakeholder either as a result of a voluntary action such as deciding to finance the project or an involuntary action such as the consequences for affected people; and the responsibilities that accompany the role of the stakeholders in the development process.20 43. In planning hydropower projects, EVN takes the central role and there is limited interaction with other line agencies other than through the formal circulation of the PFS and FS reports referred to in Section 3.1.1. As such, interaction occurs at a relatively advanced stage of the planning process leaving little opportunity for fundamental changes to be introduced. Specific roles of the various agencies involved in planning of Song Bung 4 hydropower project are presented in Table 5.

Table 5: Summary of Roles of Key Agencies and Stakeholder Groups

Agency / Group Role in Relation to Song Bung 4

Prime Minister’s Office Approval of PFS and Resettlement Plan.

Ministry of Planning and Investment (MPI) Coordinates review of PFS by line ministries.

Ministry of Finance (MoF) Guidance on compensation and review of compensation plan.

Ministry of Industry (MoI) Regulatory and approval body for electricity sector including FS and review of RP.

Electricity of Vietnam (EVN)

HPPMB3

PECC3

Local resettlement consultant Operation Board

Dispatch Centers

Planning, appraisal, financing and operation of hydropower projects • Managing the implementation process. Overseeing

EIA and RP preparation • Survey, planning and design, prepare EIA and

preliminary resettlement plan • Prepare detailed resettlement plan • Project operation. Utilizing water resources within the

regulatory framework of investment license, EIA, water law, water resources license

• Defines day to day electricity generation requirements

NAT

ION

AL

Ministry of Agriculture and Rural Development (MARD) including sub agencies – Department of Water Resources Management and Institute of Water Resources Management.

Planning of major projects for agriculture, irrigation, drainage, flood control, forestry, rural development including coastal zone management. Currently responsible for river basin management (see Section 4). Prepared Vu Gia – Thu Bon Basin Plan (2004)

Continued on next page

19 Discussions held at the wrap up meeting for Phase I in March 2005 indicated that further clarity on the

implementation details of the Decree were needed, especially as it applies to foreign funded projects. 20 Bird, J., Haas, L., and Mehta, L. 2005. Forthcoming scoping report – ‘Rights, risks and responsibilities

approach to stakeholder participation’.

15

Table 5 – Continued Agency / Group Role in Relation to Song Bung 4

Ministry of Natural Resources and Environment (MoNRE)

Responsible for clearance of environmental assessment and issuing environmental certificate. State management of water resources. Issue of license for hydraulic infrastructure

Ministry of Science and Technology (MOST) Setting water quality standards

NA

TIO

NA

L

General Dept of Hydrometeorology Hydrology and meteorology networks and data collection.

Quang Nam and Da Nang: Party, People’s Committee (PPC) / Department of Planning and Investment (DPI)

Overall development vision for the province and setting of priorities among sectors at provincial level. Review Resettlement Plan – PPC responsible for implementation of RP.

Departments of Industry (DoI) Responsible for promoting industrial zones and planning of small to medium scale electricity generation – plan prepared for 31 hydropower plants in QN, each less than 20MW.

Department of Agriculture and Rural Development (DARD) and sub-agencies, including Irrigation and Drainage Management Companies

Similar role to MARD for planning provincial scale projects. Operation of irrigation projects and secretariat function for provincial flood management committee. Responsible for State Forest Enterprises managing production forests.

Department of Natural Resources and Environment (DoNRE)

Land registration and administration. Monitoring and enforcement of environmental standards. Emerging role in water resources management.

Departments of Education, Health, Transport Involved in provision of services to affected communities.

Da Nang Water Supply Company, Quang Nam Department of Construction

Planning and supply (treatment and distribution) of municipal and industrial water supply and sanitation.

Forest Protection Department (FPD) Overall planning, management and co-ordination of both special use forests and protection forests.

Song Thanh Nature Reserve Management Board (STNRMB)

Operational management of the Special Use forest of Song Thanh Nature Reserve.

PR

OV

INC

IAL

Ethnic Minorities Committee Involved in discussions with Nam Giang District People's Committee on resettlement planning to guarantee the active participation of ethnic minority peoples.

Nam Giang District People’s Committee and line departments

Responsible for implementation of aspects of resettlement plans as assigned by the PPC.

Women’s Union, Youth Union Involved in discussions on mitigation measures including resettlement planning

Zuoih and Ta Bhing Commune Peoples Committees (and others upstream and downstream)a

Involved in discussions on resettlement during FS and implementation of RP.

Directly affected villages – resettlement area, project lands.

Consulted on resettlement during FS

DIS

TRIC

T, C

OM

MU

NE

, VIL

LAG

E

Directly affected people upstream and downstream (e.g. Dai Loc District) and indirectly affected population

Not currently consulted

a Under Vietnamese regulations, only those communities to be resettled and those losing land or other physical assets are currently consulted.

16

44. In relation to resettlement aspects, there has been interaction between EVN and the affected districts and population. For SB4, this mainly involved HPPMB3 and PECC3 in discussion with Nam Giang District People’s Committee, the affected commune committees and individual households. The sub-set of stakeholder groups involved in discussions on social mitigation measures is elaborated in more detail in Section 6, particularly regarding the nature of impacts, rights that each group has under Vietnamese legislation and the risks that they face in the development process. 3.2 Institutional Reforms in Water Resources Management and Status of River

Basin Organizations 45. Planning of water resources in Vietnam has historically been undertaken on sectoral lines with limited integration.21 The framework for a more integrated approach is, however, provided by the 1998 Water Law,22 with specific mention of the integrated use of water resources when developed for hydroelectricity23 and emphasis on the establishment of river basin organizations (RBOs) to act as a focus for cross-sectoral processes. The stated role of river basin management is ‘unified management of the planning’.24 46. Since passage of the 1998 Vietnam Water Law, there have been a number of institutional changes affecting responsibilities for water resources management. In 2002, the responsibility for state water management functions was transferred from the Ministry of Agriculture and Rural Development (MARD) to the newly established Ministry of Natural Resources and Environment (MoNRE), thereby providing a separation from line agency responsibility for service delivery in the irrigation, drainage and flood control sub sectors of MARD.25 MoNRE created a Department of Water Resources Management (DWRM) to oversee these functions. 47. The National Water Resources Council (NWRC) established under provisions of the Water Law has been significantly more active since the transfer of responsibility to MoNRE. Secretariat functions to the NWRC are fulfilled by DWRM. Among the progress made has been publication of a National Water Resources Profile in October 2003 and the preparation of a draft National Water Resources Strategy (NWRS) that is due to be submitted to the Council for approval in mid-2005. ADB, together with the Government of the Netherlands, have provided considerable support to this process and to building capacity of the new institutions.26 48. Of particular importance for hydropower planning in the future will be the 2004 Decree on Licensing that requires licenses to be issued for the exploitation of surface and groundwater and for waste water discharge.27 Hydropower projects are covered by this decree and a license for the Se San 3A project has already been issued although on a rather 21 See for example World Bank: Vietnam Water Resources Sector Review, 1996 paras 5.27-5.31 and Office of

the Water Resources Council: National Water Resources Profile, 2003, s3.2. 22 Law No.8/1998/QH10 of May 20, 1998. 23 Particularly Section 29.3 ‘Organizations and individuals that exploit and use water sources for hydro-electricity

must comply with the process of operating and regulating water ratified by the competent State agency, ensure the integrated use of water sources except for the exploitation and use of water sources for hydro-electricity for small-scale for family use’.

24 Section 64.1(a) 25 Prime Minister’s Decree 91/2002/ND-CP dated 11 November 2002. 26 ADB TA Cluster 3528-VIE, Subproject 1: Capacity Building for Water Resources Management approved on

30 October 2000. 27 Government Decree 149/2004/ND-CP on Regulation on Licensing of Water Resources Exploration,

Exploitation, and Utilization and Waste Water Discharge into Water Sources, dated 27 July 2004.

17

ad-hoc basis due to the current lack of detailed implementation guidance.28 A proposal is currently being considered by the Norwegian Development Agency, NORAD, for support to DWRM in developing a system and guidelines for licensing hydropower projects. The first draft of the guidelines is planned to be available for consultation in early 2007. It is to be expected that special emphasis will be given in the guidelines to ensuring compatibility with the forthcoming National Water Resources Strategy, building on the principles of integrated management in the Water Law. 49. In parallel to the development of the NWRS, consideration is being given to the concept of environmental flows.29 A brief study and familiarization tour for key agency staff to South Africa, where the this concept is now being operationalized, is being prepared by consultants working with DWRM under USAID financing and linked to ADB TA 3528-VIE. The World Bank defines environmental flows as ‘the water that is left in a river ecosystem, or released into it, for the specific purpose of managing the condition of that ecosystem’. Although there is no explicit requirement for environmental flows under the Water Law, the focus on environmental protection both in the Law and the Decree on Licensing and the inclusion of environmental flows in the draft NWRS has led to this initiative to explore how to operationalize these requirements. 50. The focus on river basin planning and organizations in the Water Law is consistent with ADB’s Water Policy. However there is currently an institutional vacuum relating to river basin management as the clarification on responsibility for state water resources management associated with the establishment of MoNRE did not extend to RBOs, which remains the responsibility of MARD. A new RBO decree has been drafted that is intended to transfer responsibility to MoNRE. Comments have been received from other ministries and the issue is expected to be tabled for a decision by the Prime Minister within the next 6 months. 51. Three RBOs have been established to date by MARD and preparations for an RBO for the Vu Gia – Thu Bon Basin was at an advanced state at the time of the Consultants’ first mission in January 2005.30 In each case the institutional model follows a centralized pattern with the chair being a Vice Minister of MARD and strong representation of national level ministries that tends to dominate provincial representation. EVN is not a member in its own right, but represented through MoI. 52. Experience from the three existing RBOs shows difficulties in creating local ownership and financial sustainability with each organization generally being active only when external technical assistance support is present. It is apparent that a new model is required for river basin management that is more focused on addressing specific issues and more closely reflects the institutional realities on the ground (see Section 4.2 on the implications for the Vu Gia –Thu Bon Basin). Future initiatives in the basin to establish an RBO will also need to consider the proposed functions of a Thu Bon River Basin Steering Committee to be established under VWRAP by MARD by June 2006 with representation of Quang Nam province, the City of Da Nang and MoNRE.31 The role of the Steering Committee is to support basin-wide flood management, water allocation, and planning and

28 The license is issued after environmental clearance. At this formative stage, the licensing requirements for

hydropower projects are not clearly articulated although consistency with the Water Law and river basin plans are clearly articulated in the Decree, Art 5(1).

29 See World Bank Technical Note C1, Environmental Flows: Concepts and Methods available at http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000094946_03071704181089

30 The three existing RBOs are Red – Thai Binh River, Cuu Long River and Dong Nai River. These are basins with complex water resources management issues and a large number of provinces involved in each case.

31 The establishment of the Steering Committee is a condition of the World Bank loan to Vietnam for VWRAP, see Section 6 of the Project Appraisal Document, 2004.

18

management of water resources infrastructure, and to guide and review feasibility studies prepared under the VWRAP project. 53. A proposal to introduce discussion in the Vu Gia Basin on the principles of IWRM is discussed in Section 4.4.2. 3.3 Institutions Responsible for Environmental Assessment

3.3.1 Institutions Responsible for Reviewing EIA Reports and Issuing EIA Certificates

54. MoNRE was established under Decree 91/2002/ND-CP ‘Decree of the Government providing for the functions, duties, powers and organizational structure of the Ministry of Natural Resources and Environment’. Decree 91 states that MoNRE is a GoV body that carries out ‘…State management of land, water and mineral resources, the environment, hydrometeorology, surveying and mapping throughout the country.’ Under MoNRE are several agencies, departments, centers, and enterprises (Figure 4). The most relevant for Song Bung project are:

i. Water Resource Management Agency

To assist the Minister in the state management on water resources including rainwater, surface water, underground water and the Socialist Republic of Vietnam territorial waters.

Decision 600/2003/QD-BTNMT dated 8 May 2003

ii. Vietnam Environment Protection Agency (VEPA)

To implement the state environmental management activities in terms of environmental inspectorate and supervision, pollution prevention, environmental quality improvement, natural conservation, environmental technology promotion and public awareness enhancement.

Decision 108/2002/QD-BTNMT dated 31/12/02

iii. Department of EIA Appraisal

To assist the Minister in exercising the state management of environmental impact assessments and appraisal.

Decision 14/2004/QD-BTNMT dated 16/6/2004

19

Figure 4: Organizational Chart of Ministry of Environment and Natural Resources

55. MoNRE’s procedures for managing the environmental assessment and review process are guided by numerous policies, including:

i. Decree 175/CP/1994. On Guidance for the Implementation of the Law on Environmental Protection.

ii. Circular 490/1998/TT-BKHCNMT. Circular Letter of Guidance on Setting Up and Appraising the Environmental Impact Assessment (EIA) Report for Investment Projects.

iii. MoNRE, 2001. Guidelines on Environmental Impact Assessment for Hydropower Projects.

iv. Decision 143/2004/ND-CP. In regard to The Amendment of The Decree No.175/CP Article 14 dated November 18, 1994 concerning the Implementation of Environmental Protection Law.

56. Decision 143/2004/ND-CP clarifies the central-provincial responsibilities for environmental review and assessment. The decision lists a number of project characteristics that trigger a MoNRE (i.e. central-level) review and appraisal process. According to this

20

decision, if a project has any one of these characteristics then the project qualifies for a MoNRE-level review and appraisal process. Song Bung 4 project has three qualifying characteristics and therefore a MoNRE-level (as opposed to province-level) assessment will most likely be conducted. These three characteristics are:

i. The Project is partly located within a nature conservation area.

ii. The Project impacts more than one province.

iii. The Project has a reservoir capacity of greater than 100 million cubic meters.

57. Circular 490/1998/TT-BKHCNMT lists a number of project characteristics, of which any one qualifies the project for a Category I level EIA.32 The Song Bung 4 project has two qualifying characteristics and therefore a Category I assessment will most likely be conducted. The two characteristics are:

i. The Project is partly located within a nature conservation area.

ii. The Project has a reservoir capacity of greater than 100 million cubic meters.

58. CP/175/1998 states that MoNRE may form an “appraising council” (also known as “review committee”) of up to 9 people to review and appraise the EIA report. The review committee may not exceed 9 people, and typically includes MoNRE staff, consultants, and DoNRE staff from the affected provinces.33 In the case of Song Bung 4, it is likely that MoNRE will invite Quang Nam DoNRE to play a key role on the EIA review committee. Quang Nam DoNRE’s organizational chart is presented in Figure 5.

Figure 5: Organizational Chart of Quang Nam DoNRE 32 A comparison of GoV Category ‘I’ and ADB Category ‘A’ EIAs is presented in ADB, 2004: Harmonization of

Environmental Safeguards, Procedures, and Practices in Vietnam. This comparison found that the majority of information requirements are similar, however, ADB tends to have more requirements for public consultation, disclosure, and environmental management plans.

33 Article 15 also states that the Appraising Council may include ‘possibly the representatives of social organizations and ordinary people’ but in practice such persons rarely sit on appraising committees.

Environment Division

(4 people)

HEADS OF THE DEPARTMENT - Director - Mr. Duong Chi Cong - Vice-director: Mr. Ha, Mr. Dung, Mr. Vien

Secretariats (19 people)

Land Division (12 people)

Division for Mineral, Water,

Meteo-hydrology (3 people)

Resources & Environment

Inspectors (5 people)

Center for Meteo-hydrology, Natural

Resources and Environment

(≈ 105 people)

Town, District Divisions for Natural Resources and

Environment (totally, ≈ 230 people in all

the towns and districts)

Quang Nam Urban

Environmental

Company

(>200 people)

21

59. Discussions between the Consultants and Quang Nam DoNRE revealed that the department’s main activities are in land administration, meteorology, inspection, and urban management. The department’s environment division is quite modest in size (4 persons), and in general has limited capacity to implement the Law of Environmental Protection and its pursuant circulars, decrees, and guidelines relating to environmental impact assessment. During Consultant interviews with the Quang Nam DoNRE it was revealed that they have limited budget and experience to monitor basic environmental characteristics of the province, such as water quality and air quality. These comments are consistent with the Consultants’ review of the State of the Environment Report for Quang Nam.34 This 100 page report presented ½ page of data water quality, and about ½ page of data on air quality. With such simple data sets it is difficult for DoNRE provide substantive scientific input to the EIA review committee. In particular, it will be difficult for them to review the EIA and speak with technical authority on suitable water quality management approaches and standards for the reservoir and downstream areas. 60. Da Nang DoNRE may also be invited to participate on the EIA review committee for the Project. This is because some of the surface water downstream of Song Bung 4 is used for Da Nang’s domestic water supply. Da Nang DoNRE’s organizational framework is similar to that of Figure 5. However, Da Nang’s environmental capacity is much stronger: they house a relatively experienced Environmental Management Division (EMD) that is responsible for conducting or contributing to EIAs. They also operate an Environmental Protection Centre (EPC) which acts as an environmental consulting arm to DoNRE.

3.3.2 EVN Environmental Assessment and Environmental Management of Hydropower Projects

61. Some of Electricity Vietnam’s seven operating hydropower plants have received environmental impact assessment certificates from MoNRE or its predecessor, Ministry of Science, Technology and Environment (MoSTE).35 EVN is planning to build 23 plants between 2003-2010.36 Some of these new plants are being constructed and have been issued EIA certificates already (A Vuong, Son La) but the majority are still in Pre-FS stage and therefore have yet to apply/receive EIA certificates. From these points, it can be said that EVN is now at a stage where it is rapidly building experience in hydropower EIAs, and this experience is being developed in a new regulatory nexus (MoNRE and its EIA hydropower guidelines are less than five years old). Projects like A Vuong and Son La are setting standards and providing lessons for EVN as it prepares for numerous EIAs to be conducted in parallel over the coming years. 62. Donors, GoV scientific bodies, and NGOs alike are also interested in drawing lessons and experiences from EVN’s hydropower projects. For example:

• ADB and WB independently conducted ‘due diligence’ investigations of three hydropower projects: Son La (2400 MW, 9.26 billion cubic metres); Ham Thuan Da Mi (472 MW, 695 million cubic metres), and Huoi Quang (540 MW).

34 SOE reports are still considered classified information, and therefore, the Consultants were only allowed to

review the report within MoNRE offices. 35 In operation: Hoa Binh, Thac Ba, Tri An, Thac Mo, Ham Thuan – Da Mi – Da Nhim, Song Hinh, Yali. Those

projects built prior to the Law on Environmental Protection may not have EIA certificates. 36 Dao Van Hung, EVN General Director, as quoted by BBC. December 20, 2003. This number is used here as

a guide only…the actual number of projects likely change based on new work conducted by National Hydropower Project and Institute of Energy.

22

• The State Research Program on Natural Resources and Environment has provided the World Commission on Dams their comments and observations on environmental impacts caused by the Hoa Binh hydropower project (1900 MW, 8.5 billion cubic meters).

• The Centre for Resource and Environmental Studies conducted a review of environmental management and resettlement at the Yali hydropower project (720 MW, 1 billion cubic metres).

• The Consultants visited A Vuong hydropower project (210 MW, 267 million cubic metres) and discussed its environmental management and resettlement programs with EVN and local people.

63. Based on these investigations, reviews, and discussions, the following comments can be made:

i. Comments on central-level environmental management systems

a) EVN possesses some basic components on an environmental management system: a central level environmental office; dedicated environmental staff (albeit limited in number); and relatively clear systems for processing EIA reports within EVN.

b) EVN lacks some basic components of an environmental management system: an environmental policy, a senior authority to implement the policy, internal technical guidelines for environmental management, etc.

c) An environmental assessment of the EVN master plan was not submitted to MoNRE, even though Circular 490/1998/TT-BKHCNMT calls for EIA reports of sector development plans.37 However, the Swedish International Development Agency SIDA financed National Hydropower Study did conduct a basic environmental analysis of projects, and partly based on this analysis, is working with EVN to consider revisions to the Master Plan.

ii. Comments on EIA timing

a) In some cases, a project’s detailed EIA was approved at the same time as the detailed technical design, in which case it may be too late to use the environmental analysis to improve the technical design. It was suggested that this occurs because environmental assessment is considered of relatively low significance to the FS.

b) Construction may commence before approval of detailed design under a technicality that does not declare this as actual project construction. It was suggested that this occurs in order to keep the critical path of construction to a minimal length.

c) Construction may commence before the EIA is approved. Construction before EIA approval is a contravention MoNRE policies (esp. CP 490/1998 … see below) but it was noted in one report that ‘special approvals’ can be issued to allow this to occur. This

37 EIA reports of sector and regional development plans are not commonly submitted to MoNRE for appraisal.

Hence, it is important to note that EVN’s lack of sector-level EIA does not create substantial tension or conflict with GoV.

23

observation is consistent with the Consultants’ experience in other Vietnamese development sectors.

iii. Comments on EIA content38

a) EIA reports often present an enormous amount of information, but are lacking in analysis of impacts.

b) Impact significance is rarely defined in a rigorous manner.

c) EIA reports may identify mitigation measures and monitoring activities, but the reports do not usually present such information in the breadth and depth that international reviewers considered to be viable as environmental management plans.

d) Environmental screening of projects is not required.

e) Consultation occurs but is usually limited to discussion with local government representatives, not their constituents. At least one report interpreted government guidelines to mean that public consultation – in the manner promoted by ADB – is not required.

iv. Comments on implementation of Environmental Management Plans (EMPs)

a) Construction and operation phase environmental management requirements are not well articulated by responsibility, action, or budget. Therefore, it is difficult to evaluate whether or not a project’s EMP is being successfully implemented.

b) Negative impacts noted included scouring of riverbeds (for numerous kilometers downstream), increased sedimentation, loss of terrestrial, aquatic, and avian species, and reservoir/downstream eutrophication. On the other hand, positive impacts such as flood control, improved water supply, irrigation, and of course, improved electricity supply, were noted by some authors.

64. The aforementioned comments raise a question: can the design and implementation of EMPs be improved to minimize hydropower’s negative impacts whilst still retaining its positive impacts? The answer is most likely ‘yes’ if they are: (i) supported politically by the highest levels of EVN to strengthen the management structure and financing of EMPs, and (ii) supported technically by donors with capability to build technical capacity and support development of internal management systems. Further presentation of capacity building for environmental management is provided in Section 5 of this report.

3.3.3 Institutions Responsible for Preparing Song Bung 4 EIA Report 65. EVN has assigned Hydropower Project Management Board Number 3 (HPPMB 3) to be responsible for preparing the project’s EIA submission to MoNRE and implementing the projects’ Environmental Management Plan. HPPMB3 will prepare the submission through their Environment and Resettlement Department. This department has 19 staff members and is currently working on four hydropower projects: Song Ba Ha in Ba Basin (Phu Yen province), and A Vuong, Song Bung 4, and Song Tranh 2 in the Vu Gia -Thu Bon Basin (see

38 EIA content comments should not be seen as a failure on the part of EVN to comply with MoNRE’s EIA

requirements. Indeed a review of MoNRE’s requirements revealed that they tend to favor highly descriptive reports, with little guidance the requirements for project screening, analysis of alternatives, definitions of significant impacts, public consultation, and environmental management plans.

24

organization chart in Figure 6). Two specialists are assigned to SB4. Both are trained in civil engineering and have limited resettlement and environment training/experience and at most they have been involved in one or two previous relevant projects.

Figure 6: Organization Chart of HPPMB3

66. Notwithstanding the challenges noted above, HPPMB3’s Environment and Resettlement Department have a support network to prepare the EIA. EVN’s central level Department of Science, Technology, Environment and Telecommunications provides technical and review support of HPPMB3’s draft EIA reports. Power Engineering and Consulting Company No.3 (PECC3) acts as general contractor to conduct environmental studies and prepare the environmental assessment report. Key steps towards EVN receiving the EIA certificate are presented in Figure 7 and procedures for EIA clearance are presented in Appendix 6. As indicated, the approval process of the Feasibility Study is separate to that of the EIA, although the FS must be completed prior to consideration of the EIA by MoNRE’s review committee.

Mr. Tran Van Hai Project Manager

Mr. Tran Ngoc An Vice- Project Manager

Mr. Le Duong Thuan Vice- Project Manager

Mr. Nguyen Van Le Vice- Project Manager

Environment & Resettlement Department

Technical Dept.

Operators of Hydropower Plants

Material Planning

Dept.

Finance Dept.

Project Dept Administrative & Personnel

Department

Direct management Normal procedure Notes:

Mr. Le Trung Thanh Department Head

Song Ba Ha Project

A Vuong Project Song Bung 4

Project Song Tranh 2

Project

Tran Dinh Hon B. Eng.

Nguyen Minh Chien B. Eng.

25

Figure 7: Process for Obtaining an EIA Certificate for SB4

3.4 Institutional Setup for Forest and Nature Reserve Management in the SB4

Watershed

3.4.1 Institutions Responsible for Forest Management in Quang Nam 67. The majority of the watershed area of SB4 comprises forest land with shifting agriculture close to settlements. The Quang Nam Forest Protection Sub-Department (FPD) is an independent body that reports to both the Quang Nam People’s Committee (PC) and the central-level Forest Protection Department. An organizational chart of FPD is found in Annex 5.

HPPMB3 drafts EIA TOR and budget

EVN reviews TOR and budget

HPPMB3 retains PECC3 as general contractor to EIA

PECC3 arranges and oversees EIA sub-contracts

Sub-contract 1 Sub-contract 2 Sub-contract ‘n’

PECC3 Drafts EIA Report

HPPMB3 Reviews EIA

EVN Reviews EIA Report

MoNRE forms EIA Review Committee and conducts review as per CP 490

MoNRE issues EIA certificate

EVN Submits EIA to MoNRE

EIA field work

HPPMB3 Discusses Report with: Quang Nam and Da Nang DoNRE Quang Nam and Da Nang DARD

Revise if necessary

Revise if necessary

Revise if necessary

EVN approves TOR and budget

Revise if necessary

FS Study must be complete, though not necessarily approved. Submission of FS is an EIA review condition stipulated in CP 490/1998: Setting and Appraising EIA Reports.

26

68. FPD holds provincial responsibility for managing both special use forests and protection forests under Decision 08/2001/Q§-TTg: Regulation on management of protection forests, special-use forests, production forests and natural forests. As part of their duties they also monitor the activities of State Forest Enterprises (SFEs) and manage the activities of nature reserves. The closest such SFEs and nature reserves to the Project are: Song Thanh Nature Reserve, Ca Dy SFE, and P’Rao SFE. As Figure 8 shows, the core zone of the Song Thanh Nature Reserve covers a significant part of the Song Bung 4 watershed to the south of the proposed reservoir. See Appendix 11 for more information on Song Thanh Nature Reserve.

Figure 8: Song Bung 4 Watershed and Boundaries of Forest Management Areas

Source: Adapted from WWF, 2004, Conservation Assessment of Quang Nam province. 69. The ‘remaining forested areas’ in the Song Bung 4 watershed are either under STNRMB buffer zone,39 district-level FPD (therefore still under FPD), or commune-level management (relatively independent of FPD). According to FPD, DARD, and other sources, it is likely that the management of ‘remaining forested areas’ in the Song Bung watershed will be re-allocated via one of two scenarios: 39 SNTR buffer zone is not shown in Figure 8. It is an area equivalent in size to STNR and located adjacent to

the reserve’s northern and eastern boundaries.

Song Bung 4 Reservoir Estimate of watershed boundary for Song Bung 4 reservoir Song Thanh Nature Reserve Core Zone

P’Rao SFE

Ca Dy SFE

Forest Cover

More study required to determine quality and extent of forest cover (presented for relevant areas of Song Bung 4 watershed only).

27

i. Scenario 1. STRNMB assumes expanded responsibility for forested area in

the Song Bung watershed. Under this option FPD will request expansion of STNR core zone to include a large tract of land (estimated to be in the tens of thousands of hectares) north of Highway 14D and west of Song Bung 4 reservoir. The rationale for this option is that STNRMB currently has very little political control over activities in the Reserve’s buffer zone, where much of Song Bung watershed is located. Although this is the favored of option of FPD, they noted that an increase in the STNRMB’s autonomy would not likely come with a commensurate increase in staffing and/or operational budget. FPD stated that under these conditions it is unlikely that STRNMB would have sufficient resources to conduct watershed management duties for the entire Song Bung watershed.

ii. Scenario 2. STNRMB geographic boundaries of responsibility remains unchanged. FPD proposes to DARD that STNR reduce its buffer zone boundaries substantially to allow for a second management board to be formed north of Highway 14 D. The rationale for this option is purely related to financial/human resources aspects, as new management boards must be provided with staff and operational budget.

70. Regardless of the selected option, the resulting management board would be responsible for conducting forest management, not multiple-sector watershed management. This is articulated in Decision 200/2004/ND-CP: Decree on the Arrangement and Development of State Forest Enterprises that is designed to guide the formation and authorities of forest management boards. 71. The Quang Nam Department of Agriculture and Rural Development (DARD) is responsible for implementing many articles of the Forest Law (2004). DARD holds a number of the province’s key rural development and management functions. Of most interest to the Project, the Forestry Sub-Department is responsible for managing production forests (some SFEs, non-timber forest production) under Decision 08/2001/Q§-TTg: Regulation on management of protection forests, special-use forests, production forests and natural forests. An organizational chart of Quang Nam DARD is found in Annex 5. 72. Pressures on the watershed are identified in Section 3.4.4 and the strategy to minimize adverse effects and promote the sustainability of the reservoir are outlined in Sections 5.2.3 and 5.5(v).

3.4.2. Institutional Arrangements for Forest Management 73. EVN does not have an internal compensatory forestry policy. Rather, they follow the generic guidance provided in Decision 04/2004/Q - BNN- LN: Harvesting of Timber and Other Forest Products that provides detailed instruction on forestry planning, harvesting, salvaging, collecting non-timber forest products in both protection forests and production forests. The institutional arrangements for harvesting forests under this decision are presented in Annex 7. 74. There are no known GoV policies that require financial support for forestation or forest protection garnisheed from: (i) EVN revenues generated from conducting forestry activities, or (ii) GoV revenues generated by EVN paying stumpage fees and/or forestry rights. Discussion of issues related to ADB’s Forestry Policy is contained in Section 5.2.4.

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3.4.3. Institutions Responsible for Design and Implementation of the Proposed Quang Nam Biodiversity and Natural Resource Conservation Strategy

75. One of the most relevant provincial environmental management initiatives in Quang Nam is the proposed Quang Nam Biodiversity and Natural Resource Conservation Strategy 2005-2020 (the Conservation Strategy). The Conservation Strategy was jointly drafted over a three-year period by Quang Nam Forest Protection Department (FPD) and WWF Mosaic Project (Quang Nam). Numerous provincial departments were also consulted during the drafting period.40 The Conservation Strategy lists a number of biodiversity and conservation values within Quang Nam, identifies threats and risks to maintaining and protecting those values, and proposes approximately USD 4.85 million in activities during Phase I (2005-2010) to achieve the Conservation Strategy’s short-term objectives. Clearly, the estimated cost of supporting all activities is beyond the expected available budget of Quang Nam People’s Committee and it is hoped about USD 3.90 million will come from external financing. In preparation to garner external financing, the strategy is designed as a series of components such that external agencies, (in particular, Overseas Development Assistance (ODA) can easily identify and support specific activities. 76. The Conservation Strategy proposes a Steering Committee chaired by the Vice-Chairman of the Provincial People’s Committee responsible for forestry. Proposed Steering Committee Members are: Director of Forest Protection Sub-Department, Director of Department of Agriculture and Rural Development, Director of Department of Natural Resources and Environment, Department of Fisheries, Department of Education and Training, Social and economic unit of the People’s Council. Responsibilities of Steering Committee members are to:

• Conduct annual critical review of progress towards actions and targets;

• Conduct 5-year strategy target setting;

• Ensure all departments’ work is benefiting the strategy; and

• Ensure districts and departments work and plan towards the scientifically-based priorities outlined in this strategy.

3.4.4. Institutions Responsible for Managing Anthropogenic Pressures on

the Song Bung Watershed 77. The main anthropogenic pressures affecting Song Bung water quality are mining, road development, trade-driven forestry, and forest conversion (for shifting cultivation). The local agencies responsible for managing these pressures are presented in Table 6.

40 The Conservation Strategy was agreed upon by the Quang Nam People’s Provincial Council (highest council

in Quang Nam) in April 2005. It is expected that the Quang Nam People’s Committee Chairman will sign the Conservation Strategy prior to July 2005.

29

Table 6: Institutional Framework for Managing Anthropogenic Pressures

on the Song Bung Watershed

Government Agency Managing Pressure Pressure

Sustain-ability Impact Province District Commune

Stakeholders Creating the Pressures

Mining (river dredging, riverbank excavation, gold panning)

High Negative Impact

• DoI (planning) • DoNRE (licensing,

monitoring, enforcement)

• District Dept. of Industry (enforcement)

• No formal responsibility, but informal tolerance

• Legal operators (very few)

• Illegal operators - mechanized operations and individuals (very common, many operators are not local people)

Roads a (national provincial, project access)

High Negative Impact

• DoT (design, construction, management of Class 1,2,3 roads)

• DARD (planning of forest roads)

• EVN (planning of access roads)

• District Dept. of Transport: Planning, construction, management responsibility for Class 4 and 5 roads

• Some construction monitoring and maintenance of Class 5 roads

• Mining and logging operations (access roads)

Forestry Trade-driven illegal logging

Medium Negative Impact

• FPD (planning for timber extraction)

• District DoF (control of timber extraction)

• Commune PC: support District to control timber extraction

• Local people (ethnic minorities and Kinh majority)

• Forestry companies

Forest Conversion (to shifting agriculture)

Medium Negative Impact

• DARD (policy level interventions)

• District DARD (management)

• Commune PC, village chiefs, family heads, farmers’ unions create operating rules

• Individual farmers

a Vietnam class 1,2,3 roads are paved provincial/national highways. Vietnam class 4 and 5 roads are unpaved district/commune level roads.

3.5. Institutions Involved in Resettlement Planning and Implementation 78. The process for preparing and approval of a Resettlement Plan (RP) for Song Bung 4 is depicted in Figure 9. The existing roles of provincial, district and commune level and project authorities in the planning and implementation of resettlement are summarized below. More detailed description of the responsibilities of national and provincial agencies as mandated under Decree 197/2004/ND-CP (that implements provisions of the 2004 Land Law) is given in Annex 8. 79. The Song Bung 4 project will have impacts on people, land, structures, and forest and river resources which raises a wide range of issues to be dealt with outside the jurisdiction of HPPMB3. It requires involvement of a broad spectrum of national, provincial, district and commune level organizations. The current realization is that compensation alone is not sufficient to mitigate the impacts and efforts are needed to ensure livelihoods are at least restored. The national resettlement framework currently focuses mainly on those people to be physically relocated and others that lose physical assets. Issues related to compensation for other directly and indirectly affected people and to the process and timing are addressed in Section 6.

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3.5.1. Responsibility at the Project Level

Hydro Power Project Management Board No. 3 (HPPMB3) 80. HPPMB3 is responsible for preparing and submitting the Project’s RP to EVN and for its implementation. Within HPPMB3, preparation of the RP is coordinated by the Environment and Resettlement Department from where two specialists have been assigned for SB4. Both are engineers and have limited formal resettlement training/experience and background in the social sectors. HPPMB3 has limited and relatively weak capacity for resettlement planning and implementation and relies on subcontracting work to its consultants. 81. HPPMB3’s roles and responsibilities include:

• Organization and implementation of the PFS and FS including contracting with consulting company (PECC3) and other local consultants;

• Preparation of the RP in accordance with the provisions of the Decree 197/2004/ND-CP on Compensation, Assistance and Resettlement;

• Preparation of plans for compensation, assistance and resettlement; implementation of compensation, assistance and resettlement including submittal to competent levels for approval under stipulations of the Quang Nam Provincial People’s Committee; and responsibility for compliance with policies for compensation, assistance and resettlement;

• Acquisition of land under Land Law (Art.105, 107, 109);

• Submitting the Resettlement Plan and FS to provincial and district People's Committee for review and then to EVN and Quang Nam province for approval;

• Involvement in resettlement site development: developing infrastructure such as road, houses, schools, health facilities;

• Establishing livelihood rehabilitation measures for affected people: irrigation works, water supply, rice fields, agro-forestry, animal raising and job creation;

• Participation in the Compensation, Assistance and Resettlement Board (Vice-head and member of Compensation, Assistance and Resettlement Board);

• Contracting with PECC 3 or other local consultants to prepare Temporary Regulations of Compensation and Resettlement;

• Guiding, elucidating and answering land users’ complaints about matters relating to compensation, assistance and resettlement; and

• Monitoring of implementation.

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RP field work

HPPMB3 drafts RP TOR and budget

HPPMB3 retains local consultant for consultation

and conducting RP

EVN reviews TOR and budget

Consultant arranges and oversees RP

Inventory of affected people

Consultation with people to select resettlement site

Preparing criteria for compensation

Consultant submits RP to HPPMB 3, Quang Nam DPC and PPC

Quang Nam PPC review and approve RP

HPPMB3 submit RP

EVN submit RP to MoI

MoI review RP depending on opinions of relevant Ministries

MoI submit RP to Prime Minister

PM approval

Quang Nam PPC forms Compensation, Assistance & Resettlement Board

Compensation, Assistance & Resettlement Board forms Assistance

Working Group

Assistance Working Group help to conduct implementation and monitoring

of RP

EVN approves RP

Figure 9: Process for Approving the SB4 Resettlement Plan and Its Implementation

EVN approves TOR and budget

Revise if necessary

Revise if necessary

Revise if necessary

Revise if necessary

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Consultancy for Resettlement Planning

82. As general contractor for the Feasibility Study, PECC3 has undertaken preliminary consultations in the affected villages on the options for resettlement with the aim of ensuring that sufficient suitable land and other resources are available for relocation of Project Affected People (PAPs) in the same locality. The responsible group within PECC3 is the Environmental & Computer Department which has assigned three specialists for the Song Bung 4 project. These staff are qualified engineers but have minimal formal resettlement training/experience and limited background in social sectors. PECC3 has limited experience and weak capacity for resettlement planning and implementation. The output of their work will comprise preliminary conclusions and recommendations for resettlement which will be reported in the draft FS. The PPTA Phase I team was informed that a separate local consultant will be recruited to undertake the detailed resettlement planning and preparation of Resettlement Plan which is tentatively scheduled for submission to EVN in December 2005 and approval by Quang Nam provincial authorities in March 2006. 83. Roles and responsibilities of the resettlement consultant include:

• Consulting with people on reservoir inundation and land acquisition for project construction;

• Conducting surveys, consultations and investigations, and recommending options for resettlement sites;

• Accurate reporting of the views of interest groups;

• Preparing the criterion for eligibility for entitlements under the project, developing the entitlements, and preparing Resettlement Plan;

• Preparing Temporary Regulations of Compensation and Resettlement; and

• Submitting the Resettlement Plan to HPPMB 3, DPC and PPC for review and then to EVN. EVN will forward the Resettlement Plan to MoI and the Prime Minister for approval (see Figure 9).

3.5.2 Provincial Level

84. Roles and responsibilities of Quang Nam PPC include:

• Reviewing and approving the Resettlement Plan;

• Authorizing the District People’s Committee to approve compensation, assistance and resettlement schemes;

• Taking the final decision on compensation unit costs, subsidies, allowances and supporting policies to PAPs;

• Approving land acquisition;

• Coordinating between the relevant institutions and provincial departments on implementation of the Resettlement Plan and fair compensation to PAPs;

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• Forming the Compensation, Assistance and Resettlement Board headed by Chairman or Vice-Chairman of the DPC; and

• Instructing relevant agencies to settle complaints, denunciations from citizens on compensation, assistance and resettlement under authorities provided by law.

85. Roles and responsibilities of Quang Nam provincial agencies include:

• Provincial Finance - Price Service, Department of Agricultural and Rural Development, Department of Construction and Department of Cadastry are responsible for studying and recommending compensation unit prices according to the types of houses, land, forest and properties and for submitting to the Provincial Chairman for approval;

• Department of Natural Resources and the Environment is responsible for issuance of permits on clearance and cutting of trees and the environmental compliance certificate for the resettlement site; and

• Committee for Ethnic Minorities role is to target poverty reduction; secure the active participation of ethnic minorities; capacity building within ethnic minority communities and within government; and promoting sustainable development of natural and human resources, and mutual respect and responsibility among the parties involved.

86. Quang Nam province has had relatively limited experience with resettlement schemes for major infrastructure projects, particularly projects financed by external donor agencies.

3.5.3. District Level 87. At district level, the groups involved in the resettlement planning process include Nam Giang District People's Committee and its related divisions – the Division of Planning and Investment and Division of Natural Resources, Environment and Technology. Usual responsibilities of the district administration include (i) taking part in managing resettlement and land allocation; (ii) management of forest, water resources, minerals and environment, and protecting natural resources; and (iii) controlling the illegal exploitation of natural resources. Similar to the provincial level, they have limited experience and capacity in resettlement planning. As the Project is large and exceeds the managing capacity of the district administration, it therefore takes a supporting role to PECC3 in: carrying out PFS and FS; in submitting ideas of compensation criteria; in selecting resettlement sites; in developing the resettlement plan; and assessing the effects on environment. Their roles include:

• DPC participates in the provincial level Compensation, Assistance and Resettlement Board (headed by Chairman or Vice Chairman of DPC). Its members are leaders from relevant provincial departments, relevant district divisions, commune authorities (chairman of commune and commune cadastral official), and representatives of affected people. It guides the work of the Compensation, Assistance and Resettlement Board and organizes implementation of compensation, assistance and resettlement schemes as authorized by the Provincial People's Committee;

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• Compensation, Assistance and Resettlement Board often forms Assistance Working Group of Compensation and Resettlement from staff of relevant district divisions, commune leaders, representatives of traditional leaders, village chiefs and affected people. Assistance Working Group assists in developing and implementing the Resettlement Plan;

• Work in collaboration with HPPMB3 and EVN to implement construction investment projects, schemes to set up resettlement areas at localities as authorized by the Provincial People's Committee;

• Division of Natural Resources, Division of Environment and Technology, Division of Finance and Divisions of Agricultural & Rural Development, Division of Planning & Investment (all at the district level) are responsible for coordination with HPPMB3 and PECC3 in identifying and making provisions for the agricultural and residential replacement land. They participate in Compensation, Assistance and Resettlement Board and Assistance Working Group to implement the resettlement plan, the program of developing ethnic minorities, the plan of protecting the forest and natural resources and the plan of restoration livelihood;

• Deal with complaints, grievances from citizens concerning compensation, assistance and resettlement within authorized powers. Co-ordinate, with departments with relevant functions, to implement rulings of decisions of competent agencies; and

• Monitoring of the management of relevant activities in project implementation (compensation and resettlement, environmental protection etc.)

3.5.4. Commune Level

88. The authorities in the commune (Zuoih and Ta Bhing) have not previously had to deal with the resettlement process and therefore the procedures are new and limited capacity exists. They are responsible for organizing meetings between PECC3, the People's Committee and the villages to inform PAPs about the project, their entitlements and approved compensation. Their roles and responsibilities include:

• Participating in planning consultations and negotiations on mitigation measures;

• Organizing publicity campaigns about the purposes of land recovery, policies of compensation, assistance and resettlement associated with the Project;

• Declaring current livelihood status, problems and needs;

• Providing the link between PAPs and the competent institutions throughout the period of implementing the Resettlement Plan;

• Providing a mechanism of communication for notifying authorities of non-compliance issues;

• Participating in the Compensation, Assistance, and Resettlement Board and the Assistance Working Group to identify the land and property of relocated people;

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• Co-ordinating and providing assistance in the payment of compensation and funds for transitional support and in resettlement arrangements for relocated people to enable site clearance; and

• Monitoring of the implementation of relevant project activities (such as resettlement, construction etc.).

89. The various social organizations (Fatherland Front, Women's Union, Youth's Union, Farmer's Union) participate in planning consultations and negotiations on mitigation measures representing their constituents. There are currently no local NGOs working in the area on resettlement issues.

3.5.5. Other Social Issues 90. Separate to the compensation and livelihood restoration elements of the Government’s resettlement process, it is evident that there is generally weak capacity in addressing other social impacts such as HIV/AIDS, sexually transmitted diseases, human trafficking and child labor. This includes questions over the extent that the project promoter’s recognize the direct impact of infrastructure projects on increasing the risk/incidence of such social impacts and their willingness to take responsibility including financing the necessary mitigation interventions.

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4. WATER RESOURCES MANAGEMENT ISSUES 91. One of the three main focus areas of Phase I of the PPTA is determining the extent that the planning and implementation of the Song Bung 4 Project is consistent with principles of ADB’s Water Policy, in particular regarding the principles of Integrated Water Resources Management (IWRM) and the Project’s influence on other existing and potential water uses. Section 4.1 looks at the planning context for hydropower in the basin and the relationship with other basin studies. A summary of how the planning for the project addresses the main directions of ADB’s Water Policy, using a checklist approach developed for examining ongoing and proposed projects, is provided in Annex 9. At the national level there is a high degree of consistency attributable in part to extensive support to reforms in the water sector from ADB and other external agencies. At the project level, there are differences that need to be addressed during Phase II, particularly related to the extent and nature of consultations and impacts of the proposed hydropower project on other users. These tend to be negative at a local level in the Song Bung sub-basin, but more positive further downstream on the coastal plain. 92. Specific water resources issues currently experienced in the basin and others that will result from the development of hydropower projects are briefly outlined in Section 4.2 together with the broader challenges facing introduction of IWRM. Large dams are inherently sensitive undertakings and the recent debate at global level has been mirrored within international financing institutions such as ADB. ADB’s policy with respect to large dams is discussed in Section 4.3. 93. Section 4.4 then outlines recent initiatives to establish a River Basin Organization (RBO) and makes a proposal for an alternative approach to facilitate cross-sectoral dialogue on IWRM that can be initiated within the coming months; will develop a greater sense of local ownership; will test out mechanisms for dialogue among involved agencies; and provide an opportunity to influence the current stages of planning and design of the hydropower projects and their future operation. 94. Sound technical analysis is required as a basis for examining alternative operational scenarios for the basin’s hydropower infrastructure and examining ways of optimizing benefits and minimizing adverse impacts. An initiative based on hydrodynamic modeling of the Vu Gia Basin is proposed in Section 4.5 to be undertaken as part of Phase II of the PPTA. Finally, Section 4.6 summarizes the main recommendations related to water resources management, both directly related to the Project and the broader policy aspects. 4.1 Song Bung 4 Project in the Context of the Vu Gia-Thu Bon River Basin 95. Recent sectoral planning studies covering the Vu Gia – Thu Bon Basin include EVN’s national Master Plan 2000-2010 that is currently being updated; the National Hydropower Plan (NHP) that applied technical, financial, social and environmental screening criteria to review and refine the EVN plan; agriculture and flood control planning work undertaken in preparation of the World Bank’s Water Resources Assistance Project (VWRAP); and provincial plans for irrigation and small scale hydropower development.41 Linkages with other initiatives focusing on the environmental uses of the basin’s water resources, including the emerging Quang Nam Conservation Strategy, are not explicitly made in these studies.

41 Discussions with QN Department of Industry indicated that 31 small scale hydropower projects have been

identified in the Province to be developed by private investors. The Department of Agriculture and Rural Development has plans for expanding the coverage of existing irrigation projects that currently have very low utilization.

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96. Sector-specific plans are an essential input to any water resources planning system. The question of interest here is more whether such individual sector plans are prepared within an overall framework of common policy objectives for the basin, with clear priorities established and with procedural mechanisms in place to resolve potential competing uses and conflicts, to promote optimization of water resources management, and to encourage efficiency of investment. 97. As with other basins in Vietnam, planning has so far been undertaken along sectoral lines. However in this case, the outcome does not appear to have led to conflicts between uses at a macro scale although there are likely to be significant impacts on local water resources due to the change in flow regime. Song Bung 4 appears in the NHP as a priority project for the Vu Gia Basin. The master plan prepared for MARD also includes the SB4 Project together with a number of other planned hydropower projects (Nippon Koei, 2003). It recognizes and accounts for the benefits likely to be provided from hydropower development due to opportunities for increased dry season irrigation, lower flood peaks and reduced salinity in the coastal zone. There remain, however, opportunities for improved planning to both minimize adverse impacts and optimize benefits to other sectors (see Sections 4.4 and 4.5). 98. Whether or not the SB4 Project is part of the optimum water usage strategy for the Vu Gia Basin is a difficult question to answer at this stage until more detailed knowledge of the environmental and social impacts is known.42 Certainly the fact that it is included in both the basin’s hydropower and water resources plans demonstrates that there is no fundamental conflict in the thinking behind development of water resources in the basin. Also, given its over-season storage characteristics, the macro-level influences of increasing dry season availability of water and reducing flood peaks are considered as benefits. However, the extent of local level impacts on fish habitats and stocks in the Song Bung Basin to be determined under Phase II and the extent that any such loss can be avoided through providing managed releases to the river system or mitigated through other measures is required information in order to make a conclusion on the question of optimum usage. The assessment of cumulative impacts of the basin’s hydropower projects as a whole is also necessary to this understanding. 4.2 Challenges Facing Basin Management 99. A brief summary of water resources in the VG-TB Basin is given in Section 2.3 Some of the issues to be addressed in taking an integrated water resources management approach include:

• Annual flash flooding of the agricultural plain (in the range of 30-40,000 ha in 1999) with flooded depths up to 4m and also in urban areas including Tam Ky, Hoi An and Da Nang. Damage caused in 1999 was estimated at VND 760m (approximately $50m);

• Salinity intrusion in the river estuaries adversely affecting intakes for irrigation and water supply intakes;

• Insufficient dry season flows for irrigation, degraded, incomplete and inefficient irrigation systems;

42 The Consultants note some concerns regarding the values assigned to social and environmental screening

criteria in the NHP. For example, the impacts on the Nature Reserve and biodiversity corridors do not appear to have been reflected in the broader master planning process.

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• Water shortage for Da Nang from existing supply sources and concerns over salinity intrusion;

• Ensuring a poverty focus for water allocation and investment programs;43

• River bank erosion and formation in 2000 of a new river channel from the Vu Gia sub-basin to Hoi An (Quang Hue River) exacerbating dry season shortages and saline intrusion in Da Nang and flooding in Hoi An – now being addressed under VWRAP;

• Land use issues, for example high levels of sediment in the river system from soil erosion and landslips caused by mining activities, road construction and shifting cultivation. This is both a local issue affecting villages and a macro issue requiring additional water treatment costs for urban areas;44

• Heavy metal pollution resulting from mining operations;

• Industrial and urban pollution of surface and groundwater;

• Potential contamination of water storages from dioxins (e.g. Agent Orange);

• Coastal erosion and typhoon damage;

• Lack of knowledge on the linkage between the hydrologic system, the aquatic ecosystem and the dependency of people’s livelihoods on aquatic resources;

• Lack of information on the importance of wetlands in the province;45 and

• Need to optimize operation of reservoirs in the upper basin for benefits downstream.

100. Some signs of a lack of an overarching framework or cross-sectoral institutional arrangement for integrated management include:

• MARD studies do not reflect the full extent of plans and sequencing of hydropower developments;46

• Lack of effective interaction among the agencies on the potential for multi-purpose operation of the hydropower reservoirs (flood protection, salinity control etc);47

43 See for example McGrath, T., 2004. Central Region Water Resources Sector Project: process for the

development of Provincial Water Resources Investment Strategies, ADB RETA 6123. 44 For example, Da Nang Water Supply Company reported that the quantity of alum required to settle sediment

out of drinking water had doubled since construction of the mountain pass. 45 Initial consultations reveal minimal extent of coastal wetlands, unlike the important biodiversity areas in

neighboring Thua Tien Hue Province to the north. 46 The basin development scenario to 2020 used by the Institute of Water Resources Planning, MARD, includes

only 4 out of the 8 hydropower projects planned, including SB4. 47 In their comments on the SB4 pre-feasibility study, MARD noted the lack of attention to multi-purpose benefits

although this does not appear to have led to any changes in the project planning process. Although the total volume of water stored in the reservoirs is a relatively small proportion of the mean annual flow, there may be operational considerations that could reduce flood peaks.

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• Lack of discussion on the consequences of reservoir operation for the river system downstream as it affects access to local water resources and safety, role of river-based fisheries and seasonal distribution of flows;

• Limited recognition of the importance of instream fisheries and consequences of water resources infrastructure development;

• Lack of baseline information, for example studies on aquatic resources; and

• Limited dissemination of planning outputs among other agencies, for example the Forest Protection Department and DARD do not have access to layouts of the proposed reservoirs.

101. In addition, the existing planning process including PFS and FS appears relatively centralized with limited consultation or opportunity for inputs from provincial or district agencies at the formative stages of planning when alternative configurations can be considered. 102. An institutional mechanism is described in Section 4.4 as an initial step to address some of these issues and to promote greater integration among agencies. More detailed information on the specific threats to the watershed and sustainability of the proposed reservoir are covered in Section 5.2 due to their close linkage with management proposals for forest areas and the extent of coverage of the core and buffer zones of the Song Thanh Nature Reserve in the Project’s watershed. 4.3. ADB Policy and Large Dams 103. The Government’s commitment to the Project is clearly very firm. Future consultations to be held under Phase II of the PPTA, to supplement those already held (see Section 2.4), will essentially therefore be focused on providing feedback on the project layout, design and operation and on the planning process for mitigation measures. The general perception of stakeholders towards the Project’s goals and its justification can be fed back into these design and planning processes, but it is unlikely at this advanced stage they would materially affect Government’s decision whether or not to proceed. As such, the requirement of ADB’s Water Policy for feedback from stakeholders on the justification of the project will effectively be limited to the consultations already made with national agencies, provincial representatives, and a limited number of district and commune representatives that attended the NHP workshops.48 Feedback from a wider group of stakeholders including affected people under the Phase II consultations would be undertaken prior to any formal commitments of both the Government and ADB and can influence the project design and mitigation measures.

48 The revision to para. 32 of ADB’s Water Policy approved on 28 January 2005 reads "ADB will adopt a

cautious approach to large water resource projects – particularly those involving dams and storage – given the record of environmental and social hazards associated with such projects. All such projects will need to be justified in the public interest and stakeholders must be provided with the opportunity to comment on the justification with their views considered. The ADB will promote the informed participation of government, civil society, and other stakeholders in the country in an open and inclusive manner towards this end."

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104. In the review of its 1995 Energy Policy, ADB indicates support for the general approach recommended by the World Commission on Dams (WCD, 2000), (Energy 2000).49 Its preliminary response to the WCD report is also generally supportive of the overall direction of WCD’s strategic priorities although it questions the applicability of some of the guidelines for implementation.50 More recently, the conclusion of inter-departmental discussions within ADB has indicated that ADB’s framework of policies is adequate to incorporate WCD’s recommendations on a case by case basis as considered appropriate by the local context. The WCD report has been translated into Vietnamese. A preliminary multi-stakeholder workshop on the report, financed by ADB, was held in Hanoi in February 2002.51 Points raised in the summary of the Hanoi workshop included the positive contribution of dams to the country’s development, legacy issues related to past resettlement projects, need for benefit-sharing mechanisms for affected communities, direct consultation with communities, greater attention to the needs of ethnic minorities and biodiversity conservation, and the need for regular review of operating rules in consultation with local people. It is proposed the scope of PPTA Phase II studies include a comparative analysis of the SB4 project with the seven strategic priorities proposed by WCD. 105. ADB does not have a specific policy on dam safety but follows international good practice including establishment of an independent panel of experts. In view of the current move towards harmonization of policies in Vietnam with other international financing agencies and the Government, and the requirement of MARD under VWRAP to ‘formulate recommendations regarding the establishment of a national dam safety coordination mechanism to ensure consistency among the various agencies responsible for dam safety’ by 31 December 2005, it is proposed that ADB and EVN consider adopting the World Bank Operational Policy 4.37 on Dam Safety for the project and take into account the findings of the ongoing study on dam safety being undertaken by MARD.52 4.4 Promoting Institutional Cooperation for IWRM in the Vu Gia Basin 106. Addressing the challenge of introducing principles of IWRM at basin level needs also to reflect the direction of reforms at national level. The National Water Resources Strategy currently being drafted by MoNRE will provide guidance in this regard once it has been circulated for comment. A draft should be available prior to commencement of Phase II. Preliminary indications are that the section on exploitation and use may include the following focus:

• Multipurpose focus of infrastructure projects where possible with integrated planning from an early stage;

49 “Public power generation: ADB will continue to assist its DMCs when power generation capacity additions

(including hydropower capacity), which are beyond the private sector capability or interest, are needed. In the design of such projects, care will be taken to minimize adverse impacts and to maximize economic efficiency and support for renewable energy development, where feasible. For new hydropower projects, the approach of the World Commission on Dams will be pursued”.

50 See for example the preliminary analysis of the WCD report undertaken by ADB staff at http://www.adb.org/NGOs/adb_responses.asp

51 A summary of the workshop can be read at http://www.unep-dams.org/documents/Default.asp?DocumentID=366

52 See World Bank Project Appraisal Document for the Vietnam Water Resources Assistance Project (VWRAP), Section 6 Key Credit Conditions and Covenants. OP4.37 is available at http://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/toc2/C12766B6C9D109548525672C007D07B9?OpenDocument.

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• Infrastructure reflects the principles of IWRM including justifiable in the context of the river basin, economically and socially justified, an efficient investment and environmental impacts do not pose significant risks;

• Existing systems are to be made more efficient to help meet new demands; and

• Consideration of environmental flows.

4.4.1. Institutional Arrangements for Basin Management – Recent

Initiatives 107. Recognizing the shortcomings in the existing system, and that greater integration across sectors will be required in the future as demands on water resources grow, there is already support, both at national and provincial levels, for establishing an RBO for the Vu Gia – Thu Bon Basin. The Provincial People’s Committees of both Da Nang and Quang Nam have indicated their interest in such an organization. An RBO would provide the natural home for setting water resources objectives, establishing priorities and development criteria for the basin and promoting a more cross-sectoral approach to planning processes. 108. Establishing an RBO for the Vu Gia – Thu Bon Basin would also be consistent with the direction of ADB’s Water Policy and provide a vehicle for a more integrated and decentralized approach to water resources management in the medium term. However, as noted in Section 3.2, there remains considerable uncertainty regarding the future responsibility at national level for establishing and overseeing RBOs, and there remain major questions about their effectiveness under the current, rather centralized, institutional model. A draft decree to transfer responsibility from MARD to MoNRE has been circulated for inter-ministerial comment and the next step will be a decision by Government. It is a process that could be completed within the next six months, but may take considerably longer. Assistance is already being provided by ADB to MoNRE to provide clarity on institutional responsibilities through the new decree and to develop the necessary regulatory framework.53 109. Further discussion on the composition and role of an RBO for the Vu Gia – Thu Bon Basin, in the context of the SB4 project, will be guided by the new regulatory framework. Once an RBO is formed, the provision of capacity building support could be considered in parallel with any future financing for hydropower development in the basin. However, clarification of the institutional arrangements and building of capacity within DWRM of MoNRE to initiate new RBOs will be too far in the future to benefit the Song Bung 4 project. Hence, an alternative institutional approach is presented in Section 4.4.2 for the near term that both initiates a more integrated planning approach and cooperation among agencies and, as a result, provides a building block and lessons for establishment of a future RBO.

4.4.2. A First Step: Establishing a Water Resources Review Committee 110. As indicated above, there are numerous issues that would benefit from dialogue in an inter-agency forum to promote the IWRM principles. The upper basin is relatively undeveloped at this stage in terms of water resources infrastructure and, therefore, there remains an opportunity to pursue a more integrated approach and to incorporate the outcome in the design of new hydraulic structures. At the same time, allowance can be made in the design for adaptive management in the future as the needs of the basin and societal values change over time. As an initial practical step, a better understanding needs to 53 Ref to TA 3528-VIE Subproject 1.

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be developed of how the various interventions and alternative management options interact and affect each other. 111. To facilitate this process and provide a foundation and learning experience for establishment of an RBO at some time in the future, a Water Resources Review Committee for the Vu Gia Basin comprising key stakeholders with an interest in the operation and the impacts of the hydropower facilities is proposed. Functions of the Review Committee need to be considered in detail at its first meeting but in general terms could include identifying and addressing key water resources management issues in the basin; assessing the range of options for operational rules for the hydropower reservoirs to optimize benefits across sectors; reviewing related reports and submissions from stakeholders; and making recommendations to EVN and other line agencies related to the planning and management of the basin’s infrastructure. 112. In the case of a large basin, the question inevitably arises as where to draw the boundaries of influence. This question is complicated in the case of the Vu Gia – Thu Bon Basin, not so much by the size of the basin, but by the complexity of the interconnected river system along the coast. The discussion in Section 4.5 makes the case for focusing initially on the Vu Gia Basin. 113. Composition of the Review Committee needs to be further discussed with Quang Nam and Da Nang authorities and EVN. As a starting point for that discussion, a preliminary arrangement is proposed. The following principles are offered for consideration:

• Strong level of provincial ownership;

• Recognition of the importance of both national objectives and provincial priorities;

• Consistency with Vietnam’s emerging regulatory framework for water resources planning and management;

• Balanced and neutral chairmanship;

• Inclusiveness of stakeholders with a genuine interest;

• Technical competence; and

• Secretariat independent of line agency responsibility for service provision.

114. Membership of the proposed Review Committee would be drawn from the following groups and others with an interest in the basin’s water resources:

• Vice Chairmen of Quang Nam and Da Nang PPC responsible for DoNRE and DARD;

• EVN (Hanoi, HPPMB3, Operation Board);

• MoNRE, MARD;

• DoNRE, DARD, DoI, DPI, Hydromet Service, Department of Health, Department of Transport (DoT) (Quang Nam and Da Nang);

• Forest Protection Department, Quang Nam;

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• Song Thang Management Board;

• Water Supply Company Da Nang;

• Representative of irrigation companies (Vu Gia catchment);

• Committee for Ethnic Minorities;

• Representatives of the Women’s Union and Youth Union;

• Representatives of District People’s Committee’s in the Vu Gia Basin;

• Commune representative from each of the 8 hydropower projects;

• Institutes / Consultants (PECC3, Institute of Water Resources Planning, NHP, specialist institute on aquatic resources, PPTA Phase 2 consultants);

• NGOs active in the water and environment sectors, e.g. WWF MOSAIC; and

• Observers to be considered.

115. As the bulk of the impacts and issues to be considered by the Review Committee will involve the upper and middle basin, it is proposed that the Chair of the Committee should be the Vice Chairman of Quang Nam PPC responsible for DoNRE and DARD. The Committee’s Vice Chair would be the Vice Chairman of Da Nang PPC.54 The Quang Nam DonRE is proposed as the Committee’s Secretariat as suggested in the meeting with Quang Nam PPC. 116. To further develop the concept of the Review Committee and facilitate its formation and initial meetings, it is proposed that the relevant ADB department, (MKID, MKAE or VRM), apply for financial support from Pilot Demonstration Activity facility within the Water Cooperation Fund of ADB. Although limited to $50,000, it would be sufficient to initiate the process, determine its viability and provide time to identify a source of bilateral support for longer term assistance to the Committee and ultimately an RBO for the VG-TB Basin.55 An outline proposal for the PDA is given in Annex 10.

4.4.3. Potential Focus Areas for the Review Committee 117. Determining priority areas for discussion will be one of the first activities of the Committee. A number of areas have emerged from this Phase I study for consideration related to the basin and also to broader policy issues. 118. At basin level, a more integrated approach offers opportunities to optimize water resources management, including operation of the network of hydropower projects to increase electricity generation from the basin’s resources; possible use of SB5 reservoir as a re-regulating reservoir for SB4 and A Vuong; optimize secondary benefits for flood management, dry season irrigation and salinity intrusion in the coastal zone; and minimize disruption to aquatic ecosystems. Such an approach requires dialogue among the various 54 The basis for this proposal is the relatively limited influence that the projects will have on Da Nang compared

with Quang Nam. 55 At the wrap up meeting with EVN held on 21 March 2005, it was proposed that future bilateral support could

be channeled through a future ADB TA Cluster (see Section 7).

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sectors to set priorities and criteria for optimization and also the modeling capability to investigate alternative operating scenarios. The goal is a win-win outcome for both hydropower generation and other water users in the coastal floodplain. 119. At policy level, one of the key issues relates to the appreciation and acceptance of the value of aquatic ecosystems. The discussion on environmental flows56 is just beginning in Vietnam as part of the development of the National Water Resources Strategy. In the future, this is likely to gain prominence and may become a consideration in the licensing of hydropower projects. It is therefore proposed that baseline studies on aquatic resources in the Song Bung River sub-basin be incorporated into the Phase II PPTA. Raising awareness of the issues at provincial level can also be facilitated by involvement of key provincial figures in national level studies on environmental flows and in particular, exploring the possibility of their participation in a study tour to South Africa currently being planned. 120. In the wider basin context, a strategic assessment of aquatic resources is proposed to determine whether there are specific tributaries or river reaches that, either from a livelihood or a conservation perspective, merit special attention in a similar way that terrestrial biodiversity is covered by protected areas. Adopting such an approach offers an opportunity to take a more strategic perspective of endangered aquatic resources. Ideally, such an assessment should be undertaken as a component of the master planning process and used in the project screening process. This has not been considered in the development of the National Hydropower Plan.57 Of importance here for future project development is the opportunity to overcome the limitations of incremental assessments inherent with a project-by-project approach to planning to identify critical resources for conservation. Emphasis can be given to increasing the understanding of aquatic resources and provisions that need to be made in planning and operating projects to minimize their impact. This concept can be further considered by the Review Committee including the possible sources of additional financial resources needed, perhaps as an extension to the Quang Nam Biodiversity and Natural Resource Conservation Strategy 2005-2020 (the Conservation Strategy). 121. The experience gained from meetings of the Review Committee will provide valuable insight into how river basin institutions can be promoted where a small number of provinces are involved and will contribute to development of a new institutional model. 4.5. Basin Modeling – Optimizing Reservoir Operations 122. Basic simulation modeling of the reservoir system in the upper basin and power system modeling will be undertaken in Phase 3 of the NHP in May 2005. The level of detail will be rather general aimed at confirming assumptions used in the master planning process. The modeling is not expected to lead to any major changes in project layout for SB4, but may affect design parameters; for example, it may recommend altering minimum supply levels.

56 The World Bank defines environmental flows as ‘Environmental flows are the water that is left in a river

ecosystem, or released into it, for the specific purpose of managing the condition of that ecosystem. (ref Technical Note C2.)

57 Although the screening criteria used in the NHP included officially designated protected areas, e.g. nature reserves, the focus on comparative ranking across a range of parameters does not appear to pay specific attention to the value of aquatic resources – partly as there is little available data. In contrast, in the case of the Norwegian planning process, a dual approach was adopted to prepare a master plan for development of hydropower in parallel with a protection plan identifying reaches of rivers that were restricted from development.

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123. More detailed hydrodynamic modeling and reservoir simulations would be required to assess the extent of environmental impacts and to evaluate opportunities for optimizing benefits to other sectors. Terms of reference for aspects relevant to the EIA have already been prepared by ADB and transmitted to EVN.58 The following areas are proposed for investigation from a water resources perspective, both as an input to project design and in support of the work of the proposed Water Resources Review Committee:59

• Assess alternative reservoir operational regimes on water availability for irrigation in the coastal plain, flood management and salinity intrusion;

• Assess the potential to use SB5 as a re-regulating reservoir;60

• Within the constraints imposed by needs of other sectors, optimize operation of the reservoirs in the Vu Gia Basin and Song Bung sub-basin for electricity generation;

• Assess the consequences of increased soil erosion and/or landslips associated with road construction and mining on sedimentation in reservoirs and generating capacity;

• Investigate effect of rapidly fluctuating water levels downstream of the power station on fish habitats, use of the riverbanks for agriculture and livestock grazing, and safety considerations for riverbank users and children;

• Assess consequences of changes in water quality and temperature to downstream users (e.g. on rural and urban water supplies, fish stocks, irrigation etc.);

• Assess the opportunities for introducing environmental flows;61 and

• Evaluate the effectiveness and trade-offs of introducing bottom outlets in the dams for adaptive management and dam safety considerations.

124. In defining the boundaries of the modeling exercise, it is important to include those areas that both contribute to and are affected by changes in the river flow regime. Although the whole Vu Gia-Thu Bon Basin is the ultimate focus of any new institutional arrangements for basin management, it is proposed that, as a first stage, the modeling be limited to the Vu Gia Basin. There are two main reasons. First the Vu Gia and Thu Bon sub-basins join low in the basin, relatively close to the coast where the influence of hydropower developments in the upper basin will have been considerably reduced. Second, seven out of the eight hydropower projects including SB4 are in the Vu Gia sub-basin.62 Restricting the modeling to a smaller boundary of the Song Bung sub-basin would significantly limit the utility of any

58 Modeling would provide information on the distance downstream that reservoir operation has an impact,

thereby allowing more accurate identification of affected communities and definition of mitigation measures. 59 Inevitably there is some overlap in these areas with the environmental and social issues identified. 60 Raised as a possibility by NHP consultants. 61 It is not possible to estimate the cost of adopting environmental flows until considerably a more detailed

understanding of the system and its response to changes in flow and water quality has been developed. At that stage, some indication of the trade off with electricity generation can be considered.

62 Modeling would reflect the reinstatement of the original water course at the Vu Gia – Thu Bon confluence being supported under the VWRAP project and consequent redistribution of the bulk of Vu Gia flows towards Da Nang.

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results by omitting the effects of the Dak Mi 1 and Dak Mi 4 projects, located on the Khai River and connecting to the Song Bung just downstream of SB5. Dak Mi 4 involves a diversion of water out of the Vu Gia Basin to the Thu Bon Basin and the consequences of reduced flow in the Vu Gia system will need to be assessed.63 125. Additional cross-sectional survey information and synthetic flow data will be required. A detailed plan for collection of these data and calibration of the model should be prepared in the inception stage of PPTA Phase II for implementation prior to the end of December 2005. 126. Developing an in-house capability within EVN for further refinement of the model and provision of an advisory service to stakeholders on future operations is proposed as a more sustainable option than sub-contracting the work to another agency. Discussions have been initiated with EVN and ADB on the various procurement options for modeling software and training. 127. Output from the modeling studies and deliberations of the Review Committee will provide useful insight for initiatives underway at national level, in particular the development of sector-specific guidelines on hydropower licensing and emerging discussions on environmental flows. 4.6. Summary of Water Resources Management Recommendations for Phase II 128. Recommendations related to the development of hydropower and water resources management in the Vu Gia-Thu Bon focus on:

i. Developing Institutional Capacity for IWRM Establish a cross–sectoral Water Resources Review Committee as an initial step to introducing the principles of integrated water resources management and developing recommendations to address identified challenges (see Sections 4.4.2 and 4.4.3). Initial support to be provided through a Pilot Demonstration Activity (PDA) funded by ADB. This may contribute in the medium term to establishment of an RBO and require additional resources for capacity building.

ii. Assessing and Optimizing Alternative Reservoir System Operation

Rules Develop a computer simulation model for the reservoir and river system to investigate a range of alternative operational rules and make recommendations that benefit other water sectors as well as electricity generation (as part of Phase II, see Section 4.5).

iii. Improving knowledge on Aquatic Resources in the Basin and Links to

Livelihoods Undertake baseline studies on aquatic resources for the Song Bung River sub-basin as part of environmental impact studies (initiated with PECC3 and to be continued in Phase II) and consider undertaking a strategic assessment of aquatic resources in the Vu Gia Basin to identify specific areas for protection of endangered species and those of value to local inhabitants (see Section 4.4.3).

129. Each of these activities will provide insight and valuable experience to reforms currently being considered at national level, including the ongoing discussions on RBOs and

63 Implications of increased flows for the Thu Bon basin will also need to be assessed as part of its EIA.

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emerging discussions connected to drafting of the National Water Resources Strategy, in particular the multi-purpose uses of reservoirs, preparation of guidelines on hydropower licensing and the development of guidance on environmental flows. It is recommended that a link be developed between EVN, the Phase II consultants, PDA facilitator, MoNRE and consultants under ADB TA 3528 for interaction on these issues.

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5. ENVIRONMENTAL ISSUES 130. The main focus of PPTA Phase I environmental tasks was to assess available documentation including ongoing EIA studies, review experience and existing procedures, identify major potential areas of impact, consider issues related to protected areas and compensatory forestry, prepare the TOR for environmental assessment under Phase II and identify capacity building needs of agencies responsible for environmental assessment and management. Section 5.1 introduces a generic list of environmental impacts associated with hydropower projects and the spatial scope for assessment under Phase II. Four areas are outlined in Section 5.2 for particular attention – terrestrial and aquatic resources, impacts on protected areas, sustainability of the reservoir, and impacts on forest cover. The latter two provide input to subsequent recommendations for protecting the watershed. Cumulative impacts of SB4 in the context of other hydropower development in the basin is considered in Section 5.3. Capacity to conduct EIAs and implement Environmental Management Plans (EMPs) is assessed in Section 5.4 with recommendations made both for corporate level and for project-related processes. A summary of environmental recommendations is provided in Section 5.5. 5.1 Environmental Impacts Associated with Hydropower Projects 131. Environmental impacts can be identified under the main activities associated with hydropower development, namely project planning and site selection, construction, and hydropower plant operation:

i. Project planning and site selection

a) Loss of sensitive and valued ecosystems;

b) Loss of biodiversity;

c) Disruption to the regulatory functions and free ‘services’ provided by natural ecosystems, such as flood control, watershed hydrology regulation, waste removal etc.;

d) Change in flow of river and impacts on other uses downstream (e.g. for agricultural irrigation, fisheries, navigation, water supply and impacts on other natural ecosystems such as wetlands);

e) Encroachment onto environmentally/culturally sensitive land (e.g. areas of pristine forest that might be opened up as a result of access roads etc.);

f) Impairment of navigation; and

g) Impacts on the movement and composition of fish stocks.

ii. Construction

a) Disruption of habitats and biodiversity from construction activities including flooding of reservoir, transmission and distribution lines, and traffic movements;

b) Encroachment into sensitive or valued ecological environments, that may result in habitat loss, secondary land clearing or erosion of reservoir slopes;

c) Increased soil erosion through excessive spoil and/or exposed soil surfaces;

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d) Loss of land and population relocation due to flooding of reservoir and construction of other facilities, and placement of towers and substations for transmission lines;

e) Increased runoff and sedimentation from grading for access roads, tower pads and substation facilities; all of which have the potential to damage aquatic ecosystems;

f) Increased potential for flooding due to interrupted natural drainage patterns;

g) Effects on ground and surface water hydrology and water quality and resultant effects on biodiversity (e.g. wetlands);

h) Impacts related to quarrying and borrow pits;

i) Visual impacts; and

j) Disruption to fish migration routes and habitats.

iii. Plant operation and maintenance

a) Changes in downstream hydrology, water quality, aquatic flora and fauna;

b) Changes in the nutrient load and consequent impacts on aquatic life and natural replenishment of nutrients during flood cycles;

c) Decrease in river productivity resulting from sediment held within the reservoir no longer being deposited on the floodplain;

d) Erosion/scouring of the riverbed due to the release of sediment-free water leading to bank erosion;

e) Siltation of reservoir as a result of reduced water flow behind the dam leading to reduced generation productivity;

f) Release of toxic chemicals such as hydrogen sulphide and methane (and consequent oxygen depletion) in the reservoir due to the breakdown of submerged vegetation and the release of nutrients from submerged soil. This is extremely corrosive to turbines and noxious to aquatic plants and fish both in the reservoir and downstream when water is released;

g) Barrier to fish movement and migration and potential impacts on their productivity;

h) Chemical contamination of water courses, from maintenance of rights-of-way;

i) Safety of downstream inhabitants due to rapidly changing river levels downstream of power station;

j) Secondary impacts on forestry and biodiversity as a result of access roads enabling poaching and illegal logging of timber; and

k) Conflicts over water supply for downstream users including water for irrigation, wetland replenishment, domestic and industrial uses etc.

132. The environmental study area includes the (i) Project area (dam site, reservoir and associated works – access roads, construction areas/camps, resettlement locations); (ii) transmission line corridor (right of way (ROW) of transmission line); (iii) watershed (area that drains into Project area); iv) Bung River sub-basin (area that drains into the Song Bung River

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up to the confluence with the Song Cai); (v) Vu Gia River Basin (area that drains into the Song Bung, Cai and Con rivers and flows to the coast at Da Nang); (vi) Vu Gia – Thu Bon River Basin (area that drains the complete Vu Gia and Thu Bon River systems to the coast), (see also Table 4). 5.2 Priority Impacts to Further Study/Address during Phase II 133. Within the aforementioned list of environmental impacts, there exist impacts that warrant early investigation in order to fully assess and mitigate their significance. These impacts are:

i. Impacts of the project on terrestrial and aquatic biodiversity;

ii. Impacts on protected areas;

iii. Impacts on reservoir sustainability; and

iv. Impacts on forest cover.

5.2.1 Impacts of the Project on Terrestrial and Aquatic Biodiversity

134. The following biodiversity impacts will likely occur:

i. Loss of aquatic biodiversity (upstream, within the reservoir, and downstream). Losses will occur in the reservoir area due to substantially changing the habitat from river based to lake based characteristics. Losses will occur downstream due to river diversions, changes in downstream water quality, and changes in downstream flow rates. Losses will occur along the length of the river for migratory aquatic species that can no longer travel along the river’s length due to dams and river diversions. The significance of these losses is unknown at this stage because there are no known taxonomic and population studies of aquatic species in Song Bung River.

ii. Loss of a terrestrial biodiversity corridor. According to a recent conservation assessment carried out by WWF (2004), a biodiversity corridor exists between Song Thanh Nature Reserve and a currently unprotected natural forest area just north of Highway 14 D (see Figure 10). The boundaries of the corridor and the biodiversity value of the area north of Highway 14 are interpreted from satellite images and have yet to be ground-truthed with field studies.

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Figure 10: Interpreted Satellite Image Composite of Quang Nam Province

5.2.2 Impacts on Protected Areas 135. The Song Thanh Nature Reserve Management Board has drafted a letter to HPPMB3 outlining the consequences of reservoir inundation impacts on the Nature Reserve. According to the letter (See Appendix 11 for unofficial English version), the reservoir will flood 78 hectares of core-zone and 144 hectares of buffer zone. In addition, the current design is to re-align Highway 14D southward into the Reserve’s core zone (see Figure 11). The encroachment into the Reserve could create significant environmental impacts as follows:

i. Both the road and the reservoir will increase access to the Reserve, and therefore, may increase the risk of animal trafficking, illegal mining, illegal trade-driven forestry, and illegal forest conversion to swidden agriculture.64

ii. A reconnaissance field survey through the proposed inundation area found the forest to be reasonably intact secondary growth that likely supports valuable forest corridors that adjoin upland and lowland areas.65

64 Alternatives such as embankment and bridge construction at the existing alignment should be considered

under Phase II. 65 A track follows the Ta Vin tributary and information gathered during the March 2005 field visit indicates it is

well used by people entering the Reserve for mining activities.

Road 14D in Ta Bhing, Chaval and Zuoih communes divides Song Thanh Nature Reserve from the block of forest to the north. This northern forest block has high conservation value so its continued linkage with Song Thang would buffer the reserve from threats, maintain ecological and evolutionary processes and permit dispersal of wide- ranging species.

Approximate location of reservoir (in blue). Note how it bisects the biodiversity corridor

Source: WWF

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Figure 11: Encroachment of the Reservoir into Song Thanh Nature Reserve

5.2.3 Impacts on Reservoir Sustainability and Management of the Watershed

136. The Song Bung watershed has provided a reliable source of domestic and drinking water for as long as villagers in Zuoih commune can remember. However in recent years villagers noted a significant decline in Song Bung water quality. Many villagers say the river is now too turbid to be used for drinking or domestic purposes. Some say that the water is also contaminated and is making their animals sick. 137. Local villagers claim that two recent anthropogenic pressures – mining and road development – are the most likely causes of recent Song Bung water quality changes. These pressures are to some extent linked (road development gives more access to mineral resources). The conclusions drawn by villagers are consistent with the threat analysis conducted by WWF, 2004, Conservation Assessment for Quang Nam Province, which ranks these two threats along with trade-driven illegal logging as overall threats to conservation in Quang Nam.

Proposed reservoir location according to members of Song Thanh Nature Reserve. According to HPPMB3, Highway 14D will be realigned to extend southward into Song Thanh Nature Reserve. According to Song Thanh Nature Reserve Management Board, the current reservoir design encroaches 78 hectares into the core zone of the nature reserve along the Ta Vin tributary (Park zones 300 and 301).

HW 14 D

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Figure 12: Direct Threats Ranking Exercise for Quang Nam Province66

138. Considering the above threat analysis, protecting the Song Bung watershed for the purposes of maintaining water quality for drinking water, irrigation and fishing; sustaining reservoir fisheries; and extending the life of electricity generation by reducing sediment transport in the Song Bung can be narrowed down to the following two priority management objectives:

i. Minimize soil erosion and landslips as a result of road construction, mining activities, trade-driven illegal logging, forest conversion (shifting agriculture); and

ii. Minimize surface water contamination as a result of mining activities, settlements and agriculture (including drawdown areas of the reservoir).

139. There are already numerous agencies at the province, district, and commune level that are responsible for managing a broad scope of anthropogenic pressures (see Table 6). However, the effectiveness of current management approaches to minimize water quality impacts seems to be minimal and recommendations to strengthen the capacity to protect the watershed are included in Section 5.5(v).

5.2.4 Impacts on Forest Cover 67 140. The area of forest to be cleared is roughly estimated by the Consultants to be about 1,600 hectares. This estimate was developed from the following line of deductive reasoning:

66 Source: WWF, 2004. Conservation Assessment for Quang Nam Province. 67 The information presented in this section is based on three points of reference: 1) Forest cover information

provided by WWF, 2004; 2) Project information and relief maps provided by HPPMB 3; and 3) field trips conducted by the Consultants during early 2005.

Impact Intensity

Extent

SNTFP

FC TDH TDIL GM

SH SL SF

TDF TNTFP

Rank Code Threat 1 TDH Trade Driven Hunting 1 TDIL Trade Driven Illegal Logging 1 GM Gold Mining 2 FC Forest Conversion 3 TNTFP Trade Driven HTFP harvest 4 SH Subsistence Hunting 4 SL Subsistence Logging 4 SF Subsistence Fishing 5 TDF Trade Driven Fishing 7 SNTFP Subsistence NTFP harvest

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i. The Project will acquire land to build the reservoir, access roads, construction camps, transmission lines, associated infrastructure, and resettlement areas.

ii. The reservoir area requires about 1,800 hectares of land acquisition. Other civil works and resettlement areas will account for a few hundred hectares of land acquisition. In total, between 2,200-2,700 hectares may be acquired.

iii. The project area is relatively undeveloped by humans, therefore most civil works will require forest clearing.

iv. Consistent with observation (ii), above, the proportion of area that will require forest clearing will be relatively large. 1,600 hectares represents about 60-70% of land acquired for the Project, but a more precise figure will be determined under Phase II.

141. ADB’s Forestry Policy states ADB will not finance any rural infrastructure or other public investment project that contributes significantly, directly or indirectly, to deforestation or to the degradation and depletion of forests. Should any such deforestation or degradation become inevitable, the Bank will insist upon a compensatory mechanism to reforest or rehabilitate equivalent areas as appropriate in full consultation with affected communities. 142. In order to better understand how to apply the Forestry Policy to the Project, some preliminary research has been conducted to estimate more details on the type, quality, and quantity of forest land to be cleared. The results of this research are presented below:

i. In an attempt to harmonize forest-related definitions, the Food and Agriculture Organisation (FAO) 68 identified twenty-two definitions of the term ‘Primary Forest’. These definitions vary in length and detail, but generally have the same basic content. One example is:

PRIMARY FOREST (syn. pristine, virgin, or old growth forest) Forest which has never been subject to human disturbance, or has been so little affected by hunting and gathering that its natural structure, functions and dynamics have not undergone any unnatural change.

ii. FAO identified 18 definitions of the term “Secondary Forest”. These definitions

also vary but have the same basic content. One example is:

SECONDARY FOREST: Forest that is subject to various intensities of logging, or to a long cycle of shifting cultivation, but that still contains indigenous trees and shrubs.

iii. Based on a review of all 40 definitions and ADB Forestry Policy definitions, it

is likely that the vast majority of forested area to be cleared by the Project is ‘secondary forest’. Humans have been conducting swidden cultivation and selective logging in the project area for generations, and more recently, the effects of war (Agent Orange, exploded ordnance) have certainly disrupted forests to the point where they may not possess the characteristics presented in most definitions of ‘primary forest’.

68 http://www.fao.org/documents/show_cdr.asp?url_file=/DOCREP/005/Y4171E/Y4171E36.htm

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iv. Notwithstanding point (iii), most of the area to be inundated possesses a high degree of foliage height density (FHD). FHD is positively correlated with biodiversity of birds, mammals, etc.

v. Therefore, it is reasonable to assume that although much of the Song Bung area is secondary forest, those forests are complex and viable. These complex, viable forests are certainly a dominant landscape in the project area and therefore should be well understood prior to further disruption by the SB4 project. Table 7 presents a preliminary assessment of forest type, quality, and quantity. This assessment should be further detailed during Phase II PPTA.

Table 7: Type, Quality and Quantity of Forest Land to be Cleared

Forest Type

(General Description) Forest Quality

(in the Project Area) Cleared Area

(%) Cleared

Area (ha)

Lowland Forest (0-300m) Harbors species restricted or largely restricted to it. The freshwater system of this habitat is likely to act as an important source of fish stocks and biodiversity

• Most forested area looks to be secondary growth (this should be confirmed during PPTA Phase II).

• The secondary growth is moderately diverse vegetation interspersed with regenerating swidden cultivation areas.

• There are numerous corridors where animals can travel from upland areas to the existing Bung River.

• 75% of project’s cleared forest land

• cleared for reservoir and resettlement area

1,200 ha

Lowland Hill Forest (300-700m) This is broadleaf evergreen forest dominated by members of the Fabaceae, Dipterocarpaceae and Lythraceae. It is distinguished from forest below 300m by a greater number of ephiphytes and the presence of some members of the Magnoliaceae, Lauraceae and Fagaceae.

• Secondary and possibly some primary growth (to be confirmed by PPTA Phase II).

• Secondary growth is relatively diverse vegetation capable of supporting reasonable levels of biodiversity.

• ~ 25% of project’s cleared forest land

• cleared for reservoir, resettlement area and related infrastructure

385 ha

Lower Montane Forest (700-1200m) The transition zone from lowland hill to lower montane forest varies according to local conditions, but is usually quite abrupt. Lower montane forest does not hold members of the Diptercarpaceae unlike lower elevation habitats. It is dominated by members of the Fagaceae, Lauraceae, Magnoliaceae and Theaceae with the Pinaceae, Podocarpaceae, Araliaceae and Sapotaceae characterising the habitat.

• Secondary and possibly some primary growth (to be confirmed by PPTA Phase II).

• Secondary growth is relatively diverse vegetation capable of supporting reasonable levels of biodiversity.

• <1% of Project’s cleared forest land

• may be cleared for related infrastructure

<15 ha

143. The relative proportion of cleared area to the total area of forest type in the Song Bung watershed is not well known. However, a simple overlay of available information, presented in Figure 13, yields the following observations:

i. Most of the Lowland Forest in Song Bung 4 watershed will be flooded. The loss of this lowland forest may be significant as it currently provides some of the closest lowland access for upland animal species in Quang Nam. Lowland

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forest is by far the most threatened habitat type in the watershed (and Central Truong Son) due to clearance for agriculture and ease of access owing to the short distance to settlements and flat terrain. Many lowland faunal species found in this habitat are also found in lowland hill forest, but some species are restricted to this habitat type. The freshwater system of this habitat is likely to act as an important source of fish stocks and biodiversity.

ii. Some of the Lowland Hill Forest in the Song Bung 4 watershed will be cleared. Although not as threatened as lowland forest, this habitat faces similar threats to that of Lowland Forests in Central Truong Son.

iii. Very little of the Lower Montane Forest in the Song Bung 4 watershed will be cleared. This habitat supports the highest levels of species richness, due in part, to it holding both lowland and montane species, but also due to its varied topography. It should be noted that high species richness, does not equate to species being restricted to this habitat and in fact many species are found in this habitat, but their core population source is in adjacent lower or higher elevation habitat.

Figure 13: Forest Cover in the Project Area

Source: adapted from WWF, 2004

Song Bung 4 Reservoir Estimate of Watershed Boundary for Song Bung 4 Reservoir

Based on SSTA field trips and HPPMB3topographic maps, the Consultants estimate that this area elevates westward to become a combination of secondary growth Lowland Hill Forest and secondary growth Lower Montane Forest. In addition some secondary growth Lowland Forest occurs along the base of the Song Bung river.

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5.3 Assessment of Cumulative Impacts 144. The Project is being developed in conjunction with about 30 small and medium-scale, and 7 other large-scale hydropower projects in the Vu Gia – Thu Bon Basin. Hence, ADB’s policy requirement on assessment of cumulative impacts will be engaged. Conversely, the GoV does not have a policy requirement to identify and evaluate cumulative impacts and therefore proponents of domestically-financed projects do not normally scope the environmental assessment in a manner that cumulative impacts can be identified, evaluated, and monitored.69 145. Although there is no documented requirement for assessment of cumulative impacts, HPPMB3’s EIA has taken steps towards assessing cumulative impacts. These steps are being supported by ADB, who recently developed a draft TOR for a national consultant to conduct assessment of cumulative impacts of water quality impacts through reservoir water quality modeling as follows:

The consultant will develop a number of scenarios for analysis using the model. The scenarios will be developed in conjunction with the other PPTA consultants. The scenarios should include, but not be limited to, the following elements:

(i) a range of specified rainfall and runoff regimes (ii) a set of differing configuration of dams on the Song Bung

a. Song Bung 4 only b. Song Bung 2 and Song Bung 4 c. Song Bung 2, Song Bung 4, and Song Bung 5

146. In addition to water quality monitoring, there are a range of further opportunities to identify and assess cumulative impacts. The following list gives examples of cumulative impacts that may need to be studied during the Phase II PPTA:

i. Changes in hydrological regime downstream of the power station;

ii. Morphological changes in the river channel due to erosion and sedimentation;

iii. Changes to coastal stability;

iv. Impacts caused by erosion of steep slope areas;

v. Impacts on fish and fish habitat;

vi. Loss of aquatic biological diversity;

vii. Loss of subsistence fisheries;

viii. Impacts on wildlife and wildlife habitat;

ix. Impacts on of biological diversity;

x. Impacts on harvesting non-timber forest products;

69 Personal communication with MoNRE in February 2005 noted that although cumulative effects are not

required in EIA Hydropower Guidelines or CP 490/1998: Setting up and Appraising EIA Reports, MoNRE reserves the right to require cumulative effects assessment as part of the EIA report. However, the rigor and compatibility of a Vietnamese cumulative effects assessment with ADB policy is not clear.

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xi. Impacts on sustainable forestry options;

xii. Potential for mobilization of contaminants that may be present in soil and vegetation in the proposed reservoir area, through the food chain into the fish and other edible aquatic organisms;

xiii. Social infrastructure;

xiv. Ethnic values;

xv. Gender values; and

xvi. Socio-economic development.

147. The boundaries for each cumulative impact should be consistent with the impact area. In most cases, the cumulative impact area would fall into one of the following areas:

i. Watershed (area that drains into Project area);

ii. Bung River sub-basin (area that drains into the Song Bung River up to the confluence with the Song Cai);

iii. Vu Gia River Basin (area that drains into the Song Bung, Cai and Con rivers and flows to the coast at Da Nang); and

iv. Vu Gia – Thu Bon River Basin.

148. The end result of the environmental assessment should be a clear and practical analysis that states (recognizing the paucity of data) that the impacts on a certain parameter of the total development is X, of which Song Bung 4 contribution is Y. Then a view can be taken as to whether X is acceptable. If not, changes need to be made; maybe a change to Song Bung 4, or to the wider group of proposed developments. 5.4 Capacity to Conduct EIAs and Implement Environment Management Plans

(EMPs) 149. The EIA design, development, and implementation process requires a strengthened institutional, human resource, and financial capacity to achieve the objectives of ADB’s safeguard policies.

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Table 8: Proposals for Strengthening Capacity for Environmental

Assessment and Management

EMS Component Current Status: Song Bung 4 Project

Potential for Capacity Development70

Overall Corporate Structure - EVN

Corporate-level Environment Policy No corporate-level environment policy

ADB could support development of an EVN environment policy;

ADB could include approval of environment policy as loan covenant or loan condition.

Senior EVN member responsible for overseeing environmental policy and environmental matters

No senior-level EVN member responsible for overseeing environmental policy and/or environmental matters

ADB could include assignment of senior level person to environmental policy or environmental matters as part of loan covenant or loan condition.

Corporate-level Environment Unit responsible for implementing environmental policy

No stand-alone environment unit; instead, there is one central-level environmentalist for all of EVN’s hydropower projects. Person is overburdened and therefore has limited time to support PMUs. Without corporate environmental policy their support tends to be ad hoc.

ADB could include technical assistance for strengthening of corporate level environment unit and include outcome as part of loan covenant or loan condition.

PFS and FS Phases of Song Bung 4 Project

PMU71 level staff allocated to oversee PFS and FS phase environmental matters (e.g. EIA report)

PMU has one senior-level and two intermediate level engineers overseeing the Song Bung 4 social, resettlement, and EIA components of the PFS and FS. The institutional structure of this arrangement seems adequate, but it is not clear if the experience of the intermediate staff is adequate to management large and complex EIAs.

ADB could support on-the-job training of PMU environmental team members as part of PPTA Phase II.

Project budget suitable to support PFS and FS environmental matters

The standard budget for EIAs allocated to hydropower projects is said to be about USD 12,500/EIA. This is a small proportion of what is generally required for PMU to produce an EIA acceptable to ADB safeguard policies.

ADB could work co-operatively with PMU to revise/detail /support budget as part of PPTA Phase II72


70 Guidance to construct environment loan covenants and conditions are found in: ADB, 1993: Environmental

Loan Covenants: Principles, Checklists, and Samples. ADB Environment Paper No. 12. 71 PMU = HPPMB 3 72 Partially being conducted during PPTA Phase I, likely that more effort will be required during Phase II.

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Table 8 – Continued

EMS Component Current Status: Song Bung 4 Project

Potential for Capacity Development a

Adequately qualified and available contractors to support PMU’s environmental activities

PECC3’s environmental staff have reasonable experience conducting technical components of EIAs that are required by GoV. However, they are generally lacking in additional areas required by ADB, for example:

• stakeholder consultation, • public disclosure, • cumulative assessment, • breadth of technical studies

being conducted, • determination of impact

significance, • EMP design and budget

ADB could support on-the-job training of contractor as part of PPTA

ADB could include expanded EIA report contents/approach as part of loan covenant or loan condition.

Construction Phase

PMU staff allocated to oversee and report on construction phase EMP

Same PMU staff that oversee PFS and FS also oversee construction phase. In one sense, this continuity is very positive, in the other sense, their modest experience makes it unclear how effectively they can manage the construction-phase EMP.

ADB could support on-the-job training of PMU environmental team members as part of PPTA Phase II.

Budget suitable to support EMP’s construction phase

Construction-phase budget is not known for Song Bung 4. However, experience from other EVN projects is that budgets are modest in size and general in content. In many cases EMP budgets are eliminated during construction in order to save costs.

ADB could work co-operatively with PMU to revise/detail budget as part of PPTA Phase II.

Accountable implementation of construction phase EMP with clear compliance mechanisms and financing modalities could be ADB loan covenant or loan condition.

Operations Phase

Management Board staff allocated to oversee and report on operations-phase EMP

Management Board will be housed in PMU and under the direction of Vice-Project Manager, Hydropower Operations (see Section 3 for organizational chart). The organization of the Song Bung 4 Management Board will be similar to A Vuong Management Board. Like A Vuong, it is unlikely that an environmental specialist will be assigned to the Management Board, and therefore, it is not clear how the Board will conduct and report on operations-phase EMP activities.

ADB could include appropriate person(s) assigned to implement and report on the operations phase EMP as loan covenant or loan condition.

Budget suitable to support EMP’s operation phase

Same comments as “construction-phase budgets for EMP”

Same comments as “construction-phase budgets for EMP”.

a Guidance to construct environment loan covenants and conditions are found in: ADB, 1993: Environmental Loan Covenants: Principles, Checklists, and Samples. ADB Environment Paper No. 12.

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5.5 Summary of Environmental Recommendations 150. HPPMB 3’s consultant, PECC3, has completed a draft EIA report for the Song Bung 4 project. The report presents a substantial amount of information on a wide range of environmental topics. ADB’s PPTA Phase II environmental activities will largely be oriented to draft a ADB Category A EIA report that: (i) adopts/adapts the work presented in the draft EIA report; and (ii) conducts complementary work in selected areas of EIA technical assistance and EIA capacity development assistance. 151. Recommendations for EIA technical assistance in the Phase II PPTA include:

i. Technical studies to establish baseline information on aquatic resources: upstream, downstream, and within reservoir area. Due to lack of aquatic resources information there is a need to prepare basic information for the EIA and EMP. Specific tasks include

a) design and manage aquatic resources surveys;

b) identify and assess project impacts on aquatic resources;

c) prepare mitigation measures and monitoring requirements for aquatic resources, complete with cost estimates, for incorporation into the EMP; and

d) make a preliminary assessment of aquatic resources in tributaries of the Vu Gia Basin and, where appropriate, make recommendations for future protection and management to maintain habitats of locally important species (see also Section 4.4.3).

ii. Technical studies to review and update baseline information on terrestrial resources: upstream, downstream, within reservoir area. Review and update existing information on terrestrial resources and diversity. This task will be coordinated with task (iii) (below), but takes a broader scope to include animal as well as plant diversity.

iii. Technical support to further develop a framework/budget for mitigating the impacts of forest cover loss. HPPMB 3’s consultant, PECC3, is currently collecting some basic information to support this task. As part of their EIA tasks they will: assess forest losses cause by construction of the project; propose and select alternatives for reforestation; assess compensation possibility for forest loss; schedule for reforestation plan implementation and management; and propose policies and human resource management plans. The PPTA Phase II should integrate this information into a broader list of tasks that include:

a) estimate area of submerged area and related project lands;

b) estimate types /quality of vegetation loses in the submerged area and related project lands;

c) establish objectives for compensating for vegetation losses;

d) prepare selection criteria for supporting compensation areas;

e) analyze available areas for the ability to achieve selection criteria;

f) identify forestry types and targets (in ha) for selected areas;

g) develop strategies to achieve targets (planting, seeding);

h) develop activities to achieve strategies;

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i) develop institutional arrangements to achieve activities;

j) draft budget for activities;

k) develop financing plan for the budget;

l) identify benefit stream(s) for achieving objectives, strategies, and activities; and

m) identify and analyze the risks/assumptions faced with implementing the activities.

iv. Technical studies to further develop assessment of cumulative impacts. HPPMB3’s consultant, PECC3 is currently conducting water quality modeling of cumulative impacts. The PPTA Phase II should build upon the work of HPPMB3 and integrate assessment of cumulative impacts into all of its EIA activities (see Section 5.3).

v. Technical support to mitigate impacts to Song Thanh Nature Reserve: a) propose a conservation off-set to compensate for any loss in the

biodiversity and any adverse impacts on the Song Thang Protected Area due to the Project. This may be developed in close collaboration with the ADB RETA 6213:GMS Biodiversity Conservation Corridor Initiative;

b) propose approaches to mitigate the impacts of encroachment and increased access by the Project;

c) conduct technical studies and provide EVN with options to minimize or eliminate road development in the Song Thanh Nature Reserve; and

d) propose a financing mechanism to support impact mitigation measures noted above.

vi. Technical studies and assistance to evaluate and manage highest priority threats in the Song Bung 4 watershed (road development, mining, shifting agriculture)73

a) Roads:

• Review current experience with road construction in the project area, including national, provincial, project and forest access roads and determine the likely long-term impacts on the reservoir.

• Propose guidelines for road alignment, design, construction and maintenance in steep upland areas. These can be partially adopted from previous guidelines produced through rural roads project loans to Vietnam supported by ADB, WB, and DFID.

• Propose guidelines for integrating environmental considerations into the procurement process of goods and services for constructing and maintaining roads supported by the project. These can be partially adopted from previous guidelines produced through rural roads project loans to Vietnam supported by ADB, WB, and DFID. Recommend procedures for monitoring and review.

73 The proposed Water Resource Review Committee should play an integral role in review the results of these

studies and making recommendations on how to proceed with addressing issues raised for managing mining, road development, and swidden agriculture on water resources.

63

• Make recommendations for implementation of the guidelines under the project and more broadly for other projects and agencies including the scope of a separate technical assistance being considered for capacity building for environmental management.

b) Gold mining:

• Review existing mineral resources maps and reports for the project area and upstream of the project area.

• Design and manage reconnaissance mining activity surveys to estimate the numbers and types of mineral resource extractions undertaken within and upstream of the project area.

• Design and manage reconnaissance mineral resource surveys and sampling in the field to estimate the potential for future mineral development upstream of Song Bung 4.

• Estimate the operation-phase mining scenario: types of miners, numbers of miners, extraction areas, mine-life of extraction areas.

• Work with other team members to estimate the contribution of mining activities to sediment loading of the Song Bung 4 reservoir.

• Analyze the capacity of DoNRE to manage sedimentation and water quality impacts of legal and illegal mining upstream of the Song Bung 4 reservoir.

• Based on the results of the aforementioned tasks, evaluate the significance of mining on the Project, and, if the impacts are significant, draft a strategy for EVN and GoV to mitigate these impacts to acceptable levels. The strategy could include: results of surveys, prediction of operation-phase mining impacts on the Project, and relevant mitigation and management measures (e.g. zoning, low impact mining methods, and changes to reservoir operation, institutional changes).

c) Shifting agriculture: • Prepare guidelines for low impact swidden agriculture and

sustainable utilization of forest resources to be included in the proposed Livelihood Development Program (LDP) for the Song Bung sub-basin – including proposals for awareness raising and farmer training.

vii. Technical support for strengthening the EMP: a) design of detailed measures to mitigate impacts of construction and

operation;

b) clarify institutional responsibilities to implement, monitor, and report on the EMP;

c) drafting of appropriate loan covenants and conditions to ensure effective EMP implementation; and

d) drafting of procedures for integrating environmental considerations into the procurement processes of goods and services financed under the Project.

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5.6 Indicative Cost Estimate of the Likely Environmental Mitigatory Measures During Construction and Operation

152. Based on some of the initial discussions held in Phase I and to respond to the Consultants’ TOR, tentative indicative costs can be suggested for some of the components of an EMP. Table 9 presents such indicative costs for three basic types of construction and operation-phase mitigation measures:

i. Long-term measures to support operational budgets of government agencies that must continually absorb the negative externality imposed upon them by the Project (e.g. protected areas management, fisheries management);

ii. Long-term measures to support operational budgets of government agencies that can improve project efficiency by minimizing external impacts (gold mining, road building); and

iii. Short-term measures to support activities that can rectify impacts caused by the Project (e.g. re-forestation, connection of biodiversity corridors).

153. Costs for amending the Project design or operation and for construction related mitigation measures are not included at this stage.

Table 9: Indicative Costs for Environmental Mitigation plan a

Impact Mitigation Measure Unit Cost Rationale for Unit Cost # Units Sub-total

(USD)

Support the implementation of Quang Nam Conservation Strategy’s Project 8: Freshwater Conservation

USD 130,000

Unit cost represents 100% of Project 8 because impact of Song Bung 4 Project on aquatic biodiversity is large

1 130,000

stocking reservoir first year

360,000 1 360,000

capture fishery (engines, boats, gear)

545,000 1 545,000

cage aquaculture 800,000 1 800,000

backyard hatchery 30,000 1 30,000

Impact on aquatic biodiversity

Support reservoir aquaculture to mitigation loss of local fishery b

training 350,000

Estimates provided by DANIDA’s aquaculture program in Vietnam, based on information inputs from Consultant. (Excel spreadsheet available upon request)

1 350,000 a Does not include social/resettlement mitigations. Costs in this table do not account for inflation. b Assuming water quality and other studies determine the viability of reservoir fisheries. DANIDA’s published

experience in stocking Vietnamese reservoirs found that success is variable: they are currently favoring lake cage cultures.


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Impact Mitigation Measure Unit Cost Rationale for Unit Cost # Units Sub-total

(USD)

Impact on terrestrial biodiversity

Support the implementation of Quang Nam Conservation Strategy’s Project 7: Habitat connectivity and restoration USD

200,000

Unit cost represents 100% of Project 8 because impact of Song Bung 4 Project on terrestrial biodiversity is large

1 project 200,000

Impact on protected areas

Support the implementation of Quang Nam Conservation Strategy’s Project 4: Protected Area Development USD

20,000/year

Unit cost represents partial costs of Project 8 because impact of Song Bung 4 Project is focused on one small area of one large protected area

25 years 500,000

On-land UXOs detection and removal - Depth: Up to 3.0m

2,236 USD/ha ? ?

On-land UXOs detection and removal - Depth: Up to 5.0m : VND

2,737 USD/ha ? ?

Surveying, preparing cost estimates (On-land up to 5.0m deep)

92 USD/ha ? ?

Under-water UXOs detection and removal - Depth: Up to 3.0m

4,383 USD/ha ? ?

Surveying, implementation planning, preparing cost estimates (Up to 3.0m deep under water)

153 USD/ha ? ?

On-land survey work, up to 1.5m deep

6,123 USD/ha ? ?

Preliminary survey work in order to do marking, localizing the areas where there is poisonous chemicals and/or poisons (On-land)

214 USD/ha

? ?

Clearing

Removing, transporting and treating contaminated areas

10,649 USD/ha

Unit cost estimates provided by Van Tuong Military Company, based on information inputs from Consultant (full text of proposal available upon request) # units should be estimated at later stages of the project

? ?

Impact on reservoir sustainability

PPTA Phase II Mining guidelines implemented (partially supports Quang Nam Conservation Strategy’s Project 10:Gold Mining) PPTA Phase II Road guidelines implemented

• USD 10,000/year/ mining guideline

• USD 5,000/road guideline

Estimate of GoV operational costs of implementing guidelines developed during PPTA II

• 2 guidelines • 25 years 375,000

Impact on forest cover

Replant or rehabilitate forested areas

USD 200 to USD 700 hectares (depends on type/location of mitigation)

Unit costs from relevant GoV policies (e.g. Programme 661); and discussions with FPD

1,600 hectares 320,000 to 1,120,000

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6. SOCIAL ISSUES 154. The description of social issues and recommendations for subsequent stages of investigation starts in Section 6.1 with a generic description of social impacts resulting from hydropower projects. Section 6.2 profiles those people directly and indirectly affected by the Song Bung 4 project, indicating in broad terms the nature and extent of the impacts. Procedures under Vietnam’s prevailing regulatory framework are outlined in Section 6.3 together with the extent of consultation processes to date and some concerns voiced by affected people. Section 6.4 focuses on communities upstream and downstream who are generally are ineligible for compensation under the national system, but who are covered by ADB safeguard policies. The concluding part, Section 6.5, sets out a consultation strategy for Phase II of the PPTA, examines the scope of mitigation measures, and identifies areas for capacity building and future policy dialogue. 6.1 Social Impacts Associated with Hydropower Projects 155. Social impacts typically associated with hydropower development involving large dams include but are not necessarily limited to:74

i. Project area (reservoir, new resettlement area, access roads, other construction areas, transmission corridor)

a) loss of housing, land and other physical assets;

b) impoverishment risks, loss of current means of livelihood including agriculture, access to natural resources (e.g. fishing, forest resources etc), joblessness, food insecurity;

c) breakup of village units, cultural identity, and social networks; marginalization of ethnic groups and increased gender disparity;

d) disruption to host communities from in-migration and greater pressure on their land and livelihood resources;

e) reduction in water quality and water flow with increasing water borne diseases;

f) social stress and loss of social resilience caused by resettlement;

g) loss of cultural heritage;

h) reduction in biodiversity affects livelihoods – pressure on resources from workers and camp followers;

i) influx of workers and camp followers disrupt cultural identity and norms of ethnic groups, introduce health risks, alcoholism, prostitution, spread of HIV/AIDS and other STDs, and human trafficking;

j) reduced opportunities for development during project planning periods – ‘planning blight’;

k) job opportunities;

l) opportunities for shop owners and service provider increase but may cause local inflation and shortages of essential goods;

m) improved access to markets; 74 This list was compiled with reference to the Summary EIA for Nam Theun 2 project in Lao PDR and the report

of the World Commission on Dams.

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n) improved irrigation potential;

o) opportunities for reservoir fisheries; and

p) opportunity for rural electrification.

ii. Watershed:

a) introduction of resource restrictions that reduce livelihood opportunities;

b) increased pressure on natural resources from incoming population and workers;

c) reduced fish populations due to disruption of migration routes and spawning grounds; and

d) similar threats to livelihoods and culture as listed above.

iii. Downstream River:

a) changes in river flow regime and water quality causing loss of fish and reduced nutrition, incomes and livelihoods, especially in ‘dry’ river reaches between dam and power station;

b) flooding of riverbank agricultural land and loss of grazing land;

c) reduction in water quality;

d) increased threats of water borne diseases;

e) increased risk to human and animal safety due to rapidly fluctuating water levels;

f) threat of landslips and erosion on river banks;

g) disruption to navigation;

h) increased irrigation opportunities to higher levels in the dry season;

i) reduced flooding on the coastal plain in the wet season; and

j) reduced saline intrusion in the coastal plain in the dry season.

156. The extent of social impacts will be determined in Phase II as part of the social assessment. 6.2 Profile of Project Affected People 157. Groups that are directly and indirectly affected by the project are identified as part of the wider stakeholder analysis presented in Annex 4 using a framework of rights, risks and responsibilities to describe their involvement and roles. A profile of the affected populations is presented below.

6.2.1 Resettlement – Villagers in the Reservoir Area 158. Table 10 indicates the distribution of the 940 people from 185 households to be resettled from the reservoir area within the four villages from Zuoih commune in Nam Giang District (Pa Rum A, Pa Rum B, Pa Di and Thon 2).75 These villages are located in the upper 75 Further detailed surveys are required under Phase II to assess whether these figures also included people

living in the zone of the reservoir prone to flood surcharge, namely between full supply level of 230m and the maximum flood level of 233m.

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reaches of the proposed reservoir as shown on Figure 3. Earlier indications were that an additional 60 people from 10 households in Ta Bhing village, close to the dam site may also need to be relocated and their situation would need to be clarified under Phase II. Based on the current understanding, total land flooded by the reservoir is 1,843 ha of which agricultural land accounts for 243ha, forestry land for 1,536ha, unused land for 57ha, cemeteries for 1.4ha, land for construction 0.83ha, and residential land is 4.8ha. Of this 220 ha is within the core and buffer zones of Song Thanh Nature Reserve (see Section 5.2.2). Fixed assets affected by the reservoir include 188 timber houses with metal sheet and thatch roofs, 4 dug wells, 21 classrooms, 4 rooms of communal health station, 6 rooms of communal People’s Committee, 1 footbridge, part of national road 14D, and 29 small scale irrigation works.

Table 10: Population of the Directly Affected Villages – Resettlement (up to end of January 2005)

Villages No. of Households No. of People

Pa Rum A (Zuoih) 33 195

Pa Rum B (Zuoih) 49 247

Pa Di (Zuoih) 55 251

Thon 2 (Zuoih) 48 247

Total 185 940

159. Zuoih Commune is located 19 km from Chaval commune, and to national road 14 D. The 185 households to be relocated represent approximately half of all households in the commune. Almost all villagers belong to the Ca Tu ethnic minority with 1 Gie Trieng household and 3 households belonging to the ethnic majority Kinh people. The incidence of poverty varies from 26% in Thon 2 to approximately 70% in Pa Rum A (24 families). 160. Inhabitants of the affected villages are the native population of the area who have lived there for many generations although not always in fixed villages. The village of Pa Bang was their designated home and they moved to permanent settlements in their current locations in 1975. Previously they often lived in small groups in the steep valleys. The village unit was all important and run by the village head and patriarch. Community customs and rules governed social relationships with no class distinctions although there was acknowledgement of differences in levels of ‘wealth’. Common values centered on equality, privacy and help to the community. New political and social systems based on the Party system have been set up since 1975, but the old customs remain influential. 161. No archaeological artifacts, cultural and historical relics or tourist attractions have been classified in the three villages and the two communes to date. All communes have cemetery areas but these are scattered widely and in some cases villagers reported there were no records or markers to identify graves. Thon 2, Pa Rum B and Pa Di villages have cemeteries with more than 1,000 graves. Unlike the Kinh people, under local customs it is not normal for graves to be relocated. Discussion with people however, indicated an expectation that Government should assist in moving the graves either to a higher location or to the resettlement areas and that appropriate ceremonies and rites should be performed. Communal facilities in the three villages include a newly constructed community house in Zuoih used for meetings and public cultural activities; a school in Pa Rum B village and two other schools in Pa Di and Thon 2 villages.

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162. Agriculture plays a dominant role in the economic structure of communes as local people’s incomes are mostly dependent on farming and forestry. Primary activities include upland cultivation, some rice cultivation near streams, rearing livestock, hunting and collection of forest products including medicines and herbs. The people of the commune have a basic subsistence livelihood. Villages are established close to streams and comprise traditional stilted wooden houses with thatch roofs although more recently corrugated roof sheets are being used. In Zuoih commune, people catch fish for their family’s needs and for sale. In Thon 2 village, reports indicate that each household sold about 20-30 kg per year on average. The people of villages Pa Rum B and Pa Di catch fish 2-3 times in the week and sometimes sell it (2-3 kg/month), whereas in Pa Rum A village, people catch fish for their own consumption only because they are far from the commune center. Fish ponds are increasingly being constructed in the villages as an additional source of protein. Production from agriculture and livestock for Zuoih commune is given in Tables 11 and 12.

Table 11: Productivity of Some Main Crops in Zuoih Commune, 2004

Crops Area (ha) Productivity (quintal /ha)

Rice Upland rice Wet rice Cassava area Sugarcane Orange Banana Vegetables Beans Pineapple Lemon

222

14.5 2.6 1.4 1.9

29.1 5.1 133

3.49 0.9

2442

159

1,463

Table 12: Total Output of Husbandry Sector of Zuoih Commune, 2004

Head

Buffalo 43

Cow 217

Pig 436

Poultry (of which is chicken) 2,683 (1,767)

Horse 21

Goat 47

Source: Annual Report of Socio-Economic Situation of Zuoih Commune People's Committee

163. Markets in the area are poorly developed compared to the national situation with no village or commune market. Kinh traders from Dai Loc District and Thanh My township drive by motorcycle on a daily basis to transport goods such as vegetables and meat from town to sell in the villages and to buy village produce – pigs, chicken, maize and cassava – at a considerably lower price due to the lack of marketing or cooperative arrangements. Although there are some small household shops in the villages, people have to travel 70-80 km to the district market in Thanh My for other items. People expressed their expectations that the Government would fund the building of commune markets where they could exchange their

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products at a fair price. No information has been made available about the prospect for markets in resettlement areas yet. 164. In each village of Zuoih commune there are three semi-solid built classrooms. Pupils at grades 1 to 2 have lessons in the village. Pupils at grades 3 to 5 go to the Commune primary school in Zuoih. One pupil studying at grade 6 to 8 goes to the Commune lower secondary school while grades 9 to 12 students can go to the upper secondary boarding school in Nam Giang District town. To the end of December 2004, the total number of pupils in Zuoih commune schools was 211. There is a general tendency for older children to drop school in order to work with the family or as a result of shortage of funds to cover boarding costs. 165. Zuoih communal health center has five rooms with total area of service room, living rooms and sanitary facilities of about 100 m2. Equipment and facilities including medicine board, sterilized tools, stethoscope, equipment for minor operations, injection tools, childbed, and gynaecological table, etc. There are 3 health staff at assistant doctor level, all men and Ca Tu. The Centre provides common health services including pregnancy testing and child delivery. However in the Commune, more than 90% of pregnant mothers delivered their babies at home and only about 10% of women who had difficult labor or felt weak, went to the commune health center. The high incidence of home births is due to traditional custom and due to the distance to the health facilities. Health Program 135 covers all villages so all people are provided health examinations and basic medical care free of charge. 166. Gender issues to be addressed in PPTA Phase II include the different roles of men and women, the added burden on women during and after the resettlement process, and the reluctance of Ca Tu women to get involved in participatory processes facilitated by outsiders. 167. The rights of the affected people under various government legislation and regulations include, but are not limited to:

• Constitutional rights – Constitution of the Socialist Republic of Vietnam (1992) (Art. 17, 18, 23, 58);

• Right to land – Land Law (Art. 105, 106);

• Right to compensation – Land Law (Art. 39, 42, 106) Decree 197/2004/ND-CP (Art. 18- 26);

• Right of access to water – Water Law (Art. 1, 22, 23); Land Law (Art. 102);

• Right of access to fish in river – Water Law (Art. 1, 22);

• Right of access to forest resources – Land Law (Art. 75, 76, 77);

• Traditional/customary rights – Land Law (Art. 100, 101); Decree 197/2004/ND-CP (Art. 23);

• Right to ancestral property – Land Law (Art. 98, 99); Decree 197/2004/ND-CP (Art. 22);

• Right to complain – Land Law (Art.106, 138, 139); Decree 197/2004/ND-CP (Art. 49); and

• Rights of ethnic minority people – Constitution of Social Republic of Vietnam (1992) (Art. 5); Instruction 525/TT issued by the Prime Minister on

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November 2, 1993 (this Instruction includes detailed guidelines for accelerated development of the uplands and ethnic minority areas.

168. Other provisions to consider are the obligations of GoV in respect of national legislation or applicable international regulations in relation to HIV/AIDS, human trafficking, and child labor.

6.2.2 Other Directly Affected People 169. At this stage of planning, it is not possible to determine the numbers of people that may need to be relocated or will lose land or other assets due to construction of other project facilities and temporary works – the project lands. PECC3 and HPPMB3 have indicated their intention to minimize this number and further investigation will be required during Phase II of the PPTA. 170. Construction of the dam introduces a barrier to migratory species and changes in river flow regime and water quality are likely to have a significant impact on fish stocks in the river both upstream and downstream of the proposed dam site and on the use of the river banks for agriculture and livestock grazing. At this stage, no information is available on the extent of these impacts and hence it is not yet possible to estimate the numbers of likely people affected (see also Sections 4.4.3, 5.2.1 and 6.4). Fishing impacts will be experienced in Nam Giang District, downstream in Dai Loc, where most of the boatmen live and beyond. Detailed surveys will be required to determine how many people are affected, but as a guide to potential scale, Nam Giang District alone has a population of approximately 20,400 people, a significant proportion of whom will be affected to some degree. It will involve many more villages than those being resettled with varying proportions of ethnic minorities. Although only a few boats were seen fishing in the river during field visits in March 2005, the boatmen clearly were very familiar with the various reaches of the river and skilled in passing the rapids. Consultations with villages in Zuoih commune76 confirmed the importance of river fish in the local diet. 171. Disaggregation of the fisheries impacts between various hydropower projects in the basin will be problematic due to their close interaction. A proposal to address this issue is made in Section 6.4.

6.2.3 Indirectly Affected People 172. Indirectly affected people include those in a zone around the project area that may either be better off as a result of livelihood development opportunities emerging from the development or potentially worse off as a result of pressure on resources they use. The encroachment into the area could create significant impacts due to improved road access to the upstream area and forest, thereby increasing the risk of illegal activities such as removal of non-timber forest products, logging, gold mining and fishing. Protecting the rights of local people to use natural resources, as listed above, need to be addressed when considering the influence and increased pressure on resources from incomers. Other short-term impacts during construction and the influx of workers are likely to have major long-term impacts on the traditional way of life and values of local people if not carefully controlled.

76 Pa Rum B, Pa Dhi, Thon 2

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6.3 Approach to Resettlement Planning

6.3.1 Principles Adopted under Vietnamese Regulations for Resettlement 173. Compensation and resettlement policy for development projects has improved significantly in the past decade. Before 1992, the land belonged to the State with State or collective land use rights and could in many cases be recovered without compensation, or compensation paid only to the local government or collective organizations using land. No clear compensation level for affected assets was defined but the compensation was mainly based on the agreement. However the 1992 Constitution and 1993 Land Law provided a legal basis for present compensation and resettlement policy. These were subsequently updated through the 2003 Land Law. Art. 42 (clauses 2, 3, 4) provide a new framework for compensation rates "Land users shall be compensated in the form of allocating new land with the same land use purpose with the recovered land; Resettlement zones shall be planned to shelter various resettlement projects, and the development conditions of the resettlement zones should be equal or higher than those of the recovered residential area; in cases where the land of households, individuals who directly engage in production activities are recovered and there is no land for compensation in order for them to continue production activities, in addition to the compensation in cash, the persons whose land is recovered shall receive support from the state to stabilize their lives, be trained in new careers and be arranged with new jobs". 174. The current regulations governing resettlement and compensation are:

i. Decree 197/2004/ND-CP issued on 3 December, 2004 which replaced Decree 22/1998/ND-CP. This decree regulates compensation, assistance and resettlement when the State recovers land for purposes of national defense and security, national interests, public interests and economic development as stipulated in Article 36 of Government Decree 181/2004/ND-CP dated 29 October 2004 on the implementation of the Land Law;

ii. Circular 116/2004/TT-BTC on guiding the implementation of the Government’s Decree 197/2004/ND-CP dated 03 December 2004 on Compensation, Assistance and Resettlement when the State recovers land;

iii. Decree 188/2004/ND-CP on methods of determining land price and price frame for various types of land; and

iv. Direction of the Primer Minister on speeding up the disbursement of the official development aid (ODA) capital source 17/2004/CT-TTg.

175. One of the key changes has been to prioritize land for land compensation and include compensation for assets on the land. Recent approaches to resettlement for hydropower projects include upgrading facilities, including service provision for new villages (electricity and water), health services and education as reflected in the new Land Law. Transitional support for lost income is also provided. 176. Primary principles of the current regulations (according to the Decree 197/2004/ND-CP) are based on the principle of compensation for lost assets:

• Replacement land for housing (Art.6);

• Resettlement areas to have built infrastructure before moving (Art. 33, 34, 35);

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• Compensation for lost assets, houses and structures (Art. 19);

• Replacement or cash compensation for productive land (Art. 10, 24);

• Compensation for relocation (Art.27);

• Transitional assistance of 30 kg rice per person per month for one year for persons who have to move to places of difficult socio-economic conditions (Art. 28);77 and

• Measures to be taken to stabilize livelihoods and living conditions in resettlement areas (Art.36).

177. The 2003 Land Law states that displaced people should have residences in at least the same condition as the pre-project condition or better. 178. Eligibility for compensation has been an area of diversity between GoV regulations and ADB policy. In the past, GoV policy recognized only those with legal land certificates or who, on a case by case basis and at the discretion of the PPC, can otherwise prove eligibility based on previous use of the land. Eligibility in the absence of formal certificates has been further clarified in the 2003 Land Law and Decree 197/2004/CP-ND (Art. 8). According to the ADB’s Policy on Involuntary Resettlement and Operations Manual (OM) F2 on Involuntary Resettlement, where land and assets are lost, then titled78 and legally recognized affected people are entitled to compensation and the other assistance to at least restore their economic and social base. Non-titled affected people, including displaced tenants, sharecroppers, and squatters, are entitled to various options of resettlement assistance, provided that they cultivated/occupied the land before the eligibility cut-off date. Resettlement assistance to non-titled affected people may also include replacement land. The resettlement package may include measures to ensure that such affected people are able to find alternative sites or income sources, depending on their losses. 179. Where government compensation for land is inadequate to restore the affected people's economic and social base, additional socially appropriate measures are required. Compensation entitlements are not available for people moving into the project location, or for assets that are constructed after the eligibility cutoff. "Affected persons includes any people, households, firms, or private institutions who, on account of changes that result from the project will have their (i) standard of living adversely affected; (ii) right, title, or interest in any house, land (including residential, commercial, agricultural, forest, and/or grazing land), water resources, or any other moveable or fixed assets acquired, possessed, restricted, or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence, or habitat adversely affected, with or without displacement." In the case of SB4, ADB’s Indigenous Peoples (IP) Policy is invoked which recognizes the potential vulnerability of ethnic minorities and requires development of an Ethnic Minority Development Plan (EMDP) with the primary policy objective of ensuring ‘that indigenous peoples have opportunities to participate in and benefit equally from

77 Also, any economic entity or business and production household holding a business license, which has to

discontinue its business and production, will be assisted with a payment equal to a maximum of 30% of one year’s revenue after taxation, according to the average rate of revenue of the immediate previous 3 years certified by the tax agency.

78 Such claims may result from recognition of prescriptive rights, from adverse possession, from continued possession of public lands without eviction, through eligibility for a government titling process, or from customary or traditional usage.

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development’, that development initiatives affecting them are effective and sustainable, and to provide effective safeguards against any adverse impacts.79 180. A number of other limitations of Decree 197/2004/ND-CP were identified in the Consultant’s review:

• Lack of clear regulation on disclosure of information to PAPs;

• Lack of detail on grievance procedures;

• Transitional support only for a limited initial period; and

• No coordination with other local level development programs.

181. Decree 197/2004/ND-CP extends the scope of project affected households to include assistance for production and life in resettlement areas, assistance for occupational change and job creation and for the employees of relocating enterprises during the time business and production stop but does not cover households that are not being resettled or otherwise do not lose assets (Art. 28, 29). In contrast to ADB policies, the following categories of affected persons are not considered eligible for compensation under Decree 197/2004/ND-CP:

• People losing non-physical assets;

• People losing community resources such as forests, range of land, fishing areas;

• People renting affected properties;

• People losing income-earning opportunities; and

• People losing social and cultural networks and activities.

182. Further comparison of GoV and ADB policies is given in Table 13. The major differences relate to compensation objectives, eligibility, consultation requirements, monitoring and compliance mechanisms.

79 See ADB1998, Indigenous People Policy available at http://www.adb.org/IndigenousPeoples/policy.asp

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Table 13: Comparison of ADB Resettlement Policies with Vietnam Policies

Main Points of ADB Resettlement Policy Existing Policy of Vietnam (Documented or Accepted Practice Through Precedence)

Involuntary resettlement should be avoidable, relocation should be minimized by exploring all viable project options.

Not mentioned in document but in practice attention is often given to reducing resettlement during initial studies.

Involuntary resettled people should be compensated and assisted, so that their economic and social future would be generally as well-of as the absence of project.

Policy refers explicitly to restoring housing, measures to be taken to assist production and life in resettlement areas (Decree 197/2004:Art. 36).

PAPs should be informed fully and consulted on resettlement and compensation options.

Art. 39 of the New Land Law stipulates: At least ninety days prior to the recovery of agriculture land or one hundred and eighty days prior to the recovery of non-agricultural land, the authorized State bodies shall notify the land user of the reasons for removal; and the overall plan for compensation, site clearance and resettlement.

Existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible, and resettlers should be integrated economically and socially into host communities.

Not mentioned

The absence of legal title to land of affected groups should not be a bar to compensation; particular attention should be paid to households headed by women and other vulnerable groups, such as indigenous people and ethnic minorities, and appropriate assistance provided to help them improve their status.

Eligibility linked to legal certificates or demonstration of entitlement according to established principles. Non-physical assets, community resources, tenants, etc not recognized (see text).

As far as possible, involuntary resettlement should be conceived and executed as a part of the project.

Decree 52/1999/ND-CP stipulates that Resettlement Plan will be included in project’s contents to be reviewed and approved and initially forms the basis for this issue.

The full costs of resettlement and compensation should be included in the presentation of project costs and benefits.

Decree 197/2004/ND-CP requires that developer/ proponent is responsible for paying all compensation and resettlement costs must be included in total project’s cost (Art. 39).

Resettlement Plan should be prepared in case of project causing involuntary resettlement.

Stipulated in Decree 52/1999/ND-CP in principle.

Compensation for affected asset should be based on replacement cost.

Compensation for actual loss but in many cases being insufficient to replace affected asset.

Compensation and resettlement should be completed before project’s implementation.

Infrastructure for housing should be provided before relocation. Decree 197/2004/ND-CP stipulates that before the arrangement of residential land for households and individuals, resettlement areas must have been built with comprehensive infrastructure to ensure similar or better conditions than original places of residence (Art. 35).

Proper income restoration program should be prepared.

Not mentioned.

Participation of stakeholders in resettlement planning and implementation.

Art. 39 Decree 197/2004/ND-CP stipulates: The Compensation and Resettlement Board includes the Representatives of relevant Department, Project developer/ proponent, and representatives of the Commune People’s Committee where the land is recovered, and representatives of affected people.

Clear mechanisms for grievance redress. Art. 49. Decree 197/2004/ND-CP stipulates: If any person from whom land has been recovered does not agree with the decision on compensation, assistance and resettlement, he or she has the right to make complaints under the provisions of law. The responsibilities to handle complaints, the time validity for complaints and the order to handle complaints are to be implemented under provisions in Article 138 of the Land Law 2003 and Article 162, 163, 164 Government’s Decree 181/2004/ND-Cp dated 29 October 2004 on the implementation of the Land Law.

Need of independent monitoring Resettlement Plan’s implementation.

Not mentioned.

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183. Observance of ADB’s Indigenous Peoples Policy in Phase II of the PPTA will seek to ensure that ethnic minorities are informed, consulted and mobilized to participate in the Project. Their participation can both provide them benefits with more certainty, and protect them from any potential adverse impacts of the Project. Consultations with and participation of the minority population, their leaders and local government officials will be an integral part of the EMDP. Particular attention will be needed on:

• Avoidance of adverse effects in the project design;

• Sustainable mitigation measures for ethnic minorities adversely affected by the Project including those upstream, downstream and in the peripheral impact zone;

• Ensuring affected populations are as least as well-off as without the project;80

• Equal opportunities for indigenous peoples;

• Informed participation in the conception, planning and implementation of project measures affecting them;

• A development plan that takes into full account the desires and preferred options of indigenous peoples; and

• Support for viable and sustainable production systems.

184. A key principle of ADB’s IP Policy is that ‘it is preferable that the net impact a project will have on indigenous peoples be not only positive, but also perceived by indigenous peoples as positive’. It supports the continuity and development of indigenous peoples’ communities including:

• Legal recognition of ancestral domain and the traditional rights of indigenous peoples over land and resources; and

• Recognized legitimacy of the indigenous peoples to direct the course of their own development and change.

185. The objectives of GoV policies include supporting eligible poor and vulnerable groups. With the agreement of EVN, this provides a window of opportunity to go beyond the minimum requirements and accommodate livelihood improvement objectives, for example in a manner consistent with ADB’s IP Policy.

6.3.2 Existing Consultation Process Relating to Resettlement Planning 186. According to Vietnamese policy, the participation of affected households focuses on notification81 and on direct participation by encouraging PAPs to be involved in discussions 80 Note that ADB resettlement policy requires vulnerable groups to be better off after the project 81 Art. 49. Decree 197/2004/ND-CP stipulates: If any person from whom land has been recovered does not agree with the decision on compensation,

assistance and resettlement, he or she has the right to make complaints under the provisions of law. The responsibilities to handle complaints, the time validity for complaints and the order to handle complaints are to be implemented under provisions in Article 138 of the Land Law 2003 and Article 162, 163, 164.

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and decisions on issues relevant to compensation and resettlement through their representatives in the Compensation, Assistance & Resettlement Board (Decree 197/2004/ND-CP). A number of issues associated with past approaches include:

• Consultation mechanisms are relatively top down and more focused on informing the affected population rather than involving them in decisions and providing feedback – no encouragement for active participation;

• Data collection is simple and formalized with an emphasis on obtaining signatures in support of the resettlement;

• Lack of social specialists in PECC3 and HPPMB3to conduct social assessment (lack of skills and experiences of project officials and local staff);

• No specific focus on indigenous peoples, gender and cultural aspects; and

• No special arrangements for consultation with vulnerable groups – (women, old, young, shy people) and no consistency in use of local Ca Tu language.

187. Although visual inspections and consultations are held on alternative relocation sites, scientific investigations of land availability, soil suitability and access to clean water tend to be carried out only on the preferred site rather than on each of the alternative sites. This therefore limits the information on which affected people can voice their opinion and make informed decisions affecting their future. 188. Consultations on resettlement for SB4 are relatively advanced. The opinions of two of the villages to be resettled have been collected by PECC3 whose draft report and resettlement plan will be sent to HPPMB3 and district officials for review in April 2005. Discussions with HPPMB3 in March 2005 indicated that the FS will contain a range of options and that these will be further discussed with affected people, the Commune and District officials as part of the detailed resettlement planning stage to be facilitated by a separate local consultant under HPPMB3. Close collaboration between this consultant and PPTA Phase II consultants will be required. The review process is outlined in Figure 9 and approval from the Prime Minister’s Office is currently scheduled for the end of 2005.

6.3.3 Concerns of Project Affected People 189. Villagers expressed concerns over the proposed resettlement with some, particularly older people, voicing strong desire to remain in their villages. Others indicate support for a move on the expectation that opportunities will be provided for them to improve their livelihoods. Currently there is a significant amount of uncertainty about their prospects in the new location which is unsettling. Losses will include houses and associated facilities (e.g. cattle pens and fowl cages); irrigated rice land; developed upland farmland; fruit trees; access to forest land, timber and non-timber products; rivers and streams for fishing; graves – a particularly sensitive subject as there is no culture of moving them; schools; health center and access bridge between villages. People are looking for opportunities in the resettlement areas including better communications and road access, provision of electricity, access to health services; sufficient water for irrigation; better market facilities and access; maintaining their cultural identity; and generally improving their livelihoods. 190. Concerns have also been voiced by Cong Don villagers, one of the potential resettlement sites, due to the potential impacts of an influx of new people on their resources and traditional way of life.

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191. According to a briefing during the March 2005 field visit:

• Thon 2 village preference is to relocate to Pa Bang, north of the proposed reservoir;82

• Pa Rum A preference is to relocate to Khe Bon (a tributary of the Song Bung close to their existing location where they previously cultivated land); and

• Pa Rum B and Pa Di preference is to relocate to Khe Zuoih (where Pa Di currently cultivates land).

192. Commune leaders have indicated they would prefer all resettlers to relocate to one location near Cong Don, a village about half way between the offices of Zuoih Commune at Pa Rum B and road 14D at Chaval. The reason appears to be to make commune administration easier, maintain the center of the Commune close to Cong Don and avoid separation of villages by the reservoir. Cost considerations of providing infrastructure and services to resettled villages have influenced the view of EVN. The District, however, would like to ensure the development of the whole commune and supports whatever options are chosen by the affected villages. 193. The next steps in the process of selecting the most appropriate resettlement sites will be (i) to conduct technical studies to assess the feasibility of the proposed options: soil capability assessment, water availability for household and agricultural use, sufficient land with good agricultural potential, proximity to forest and fishing resources; and then (ii) to take the findings back to the resettlers for their opinions and preferences. 194. Visits by the Consultants to the resettlement site being constructed for A Vuong reservoir in the neighboring commune Ma Cooih of Dong Giang District identified significant concerns of the local population, lack of attention to their traditional way of life and a reluctance to move to the new location (see Annex 15). Lessons from this project should be incorporated into the planning for SB4. 6.4 Recognition of Upstream and Downstream Community Interests 195. As indicated in Section 6.3, Vietnamese policy entitles those who stand to lose their land and property attached to land to compensation and assistance. Others whose livelihoods are affected such as fishing or use of other community resources are not considered eligible for compensation. Experience from other projects in the region clearly shows that such impacts can be very significant and lead to impoverishment in communities that are already below the poverty line. 196. Impacts include loss of fish in rivers due to changes in the aquatic ecosystems and habitats, loss of riverbanks for agriculture and livestock grazing due to rapidly fluctuating water levels on a daily basis, and loss of agricultural land and forest resources in the reservoir areas. In areas upstream of the reservoir, there is also a potential for backwater flooding as a result of sediment deposition in the headwaters. 197. All groups affected by such losses are considered as directly affected people under ADB safeguard policies and eligible for compensation. According to the ADB definition, project affected households (PAHs) are defined as those who stand to lose all or part of their physical and non-physical assets, including homes and communities, productive lands and 82 This would involve construction of an access road from the dam site.

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resources such as forests, range of lands, fishing area, or important cultural sites, commercial proper ties, tenancy, income-earning opportunities, social and cultural networks and activities. 198. At this stage it is not possible to determine the numbers of people involved, either those whose livelihoods are directly changed as a result of the project or those in what is termed the peripheral impact zone, who may be indirectly affected. No surveys in these areas have been carried out and the required hydrodynamic modeling that would provide information on the extent of changes in river regime downstream of the dam has not yet been undertaken. Determination of impacts is also constrained by the lack of aquatic baseline surveys and lack of knowledge on the linkage between river flows and aquatic resources. The consultation strategy outlined in Section 6.5 to be undertaken in Phase II of the PPTA will need to be implemented to gather sufficient information on the nature and scale of potential losses for each of these groups. It should be possible to collect relatively definitive information for losses from agriculture and grazing. For fisheries however, the current lack of knowledge on linkages between aquatic resources and hydrology in the areas may mean that it is only possible to use the surveys to ascertain the upper boundary of loss – for the scenario that a total breakdown of fishing in the rivers occurs. 199. Given the interconnected nature of hydropower development in the basin and complexity of interaction between hydrology and aquatic ecology, it will be difficult to accurately demarcate impacts on river fisheries to be attributed to an individual dam. Also, as the river system is currently in a relatively pristine state and the developments will all occur within a few years of each other, entering into a debate about whether one project or another – whichever is developed first – is responsible for the impacts on fish and hence livelihoods is rather academic. In the absence of more scientific evidence, the following simplified approach is proposed as a means of attributing impacts, and hence costs of mitigation, for further consideration in Phase II of the PPTA:

i. Impacts on villages in the Song Bung sub-basin extending from the head reach of one reservoir down to the head reach of the next reservoir could be assigned as direct impacts of the upper project and mitigation costs included in its budget;83 and

ii. Livelihood impacts on villages in the Vu Gia Basin that are not likely to be mitigated (either due to lack of policy coverage for such impacts under GoV regulations or in tributaries and areas of peripheral impact where attribution would be problematic) could be addressed under a separately financed livelihood development program for the basin.

83 In this scenario mitigation costs would be apportioned in the following manner:

• SB2 would be responsible for impacts experienced in villages located between the headwaters of the Song Bung to the upper limit of the SB4 reservoir;

• SB4 would be responsible for impacts experienced in villages located between the upper limit of SB4 and the upper limit of the SB5 reservoir;

• A Vuong would be responsible for impacts experienced in villages located between the upper reaches of A Vuong and its confluence with the Song Bung; and

• SB5 would be responsible for impacts experienced in villages located between the upper limit of SB5 and the point downstream in the Vu Gia basin at which impacts diminish below an insignificant amount to be determined under the environmental and social assessments.

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6.5 Recommendations for Phase II of the PPTA

6.5.1 Consultation Strategy 200. The strategy for consultations under Phase II of the PPTA needs to build on the various processes initiated under the National Hydropower Plan, the pre-feasibility and feasibility studies and Phase I of the PPTA (see Section 2.4). The focus areas for consultations are summarized in Table 14. This section deals in detail with consultation processes related to social mitigation measures, whereas those related to water resources, watershed and environmental aspects are covered in Chapters 4 and 5.

Table 14: Focus Areas for Consultations

Spatial Context Topic Target Group Project area Relocation, compensation and

livelihood development • Villages and communes to be relocated and

others experiencing losses • Host communities • District and Provincial authorities

Transmission corridor Relocation, compensation and livelihood development

• Villages and communes to be relocated and others experiencing losses

• Host communities • District and Provincial authorities

Song Bung sub-basin 1. Mitigation for other direct project impacts

2. Livelihood development

program for indirect project impacts

• Villages and communes along Song Bung River with impacts directly attributable to the project, such as loss of fish, reduction in water flows, water quality impacts

• Villages and communes along Song Bung

River and in peripheral areas with indirect livelihood impacts and impacts related to other hydro projects in the sub-basin

• District and Provincial authorities

Watershed (see Section 5.2.3)

Protection of watershed and sustainable resource use

• Mining operations • Road authorities • Villagers involved in agriculture and

collecting forest products from the watershed • Forest enterprises and management boards • District and Provincial authorities

Vu Gia River Basin (see Section 4.4)

Planning and operation of hydropower within the basin

• Representatives of water users • District and Provincial agencies • Water Resources Review Committee

General (see Section 5.3)

EIA and environmental management plan

• Affected villages and communes • District and Provincial agencies • National agencies • General public

201. The aims of the public information campaign and consultation program with project affected people are to:

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• Provide full and impartial information to affected people about the project, its activities, and potential impacts that affect them, and to provide an opportunity for their feedback on the project;

• Explore a range of options for minimizing project impacts, and for those impacts that cannot be avoided, ensure participation in the design of mitigation measures;

• Gather information about the needs and priorities of affected people as well as their feedback on proposed resettlement and compensation policies, options and activities;

• Obtain the co-operation, participation and feedback of affected people on activities to be undertaken in resettlement planning and implementation, in particular on the location for resettlement, planning and design of housing, land and community facilities, and provision of livelihood opportunities;

• Ensure implementation compliance for all activities related to land acquisition, resettlement and rehabilitation;

• Explore options for livelihood development based on sustainable use of natural resources;

• Consultation with watershed residents and those in the peripheral impact zone who use the natural resources in the watershed, to identify sustainable and non-sustainable resource use practices and to design alternatives to unsustainable practices; and

• Provide a mechanism for continued dialogue, raising of concerns and monitoring of implementation.

202. Basic principles for the consultation should include inclusiveness, openness, neutral facilitation; encouraging active participation; providing an environment that is not intimidating for vulnerable groups (women, old, young, shy people); use of Ca Tu language; and a mechanism to provide feedback on outcomes and demonstrating how the contributions made have been accommodated or reasons they have not. Full opportunity should be given for affected people to ask questions and clarify policies and entitlements. The two-way flow of information between community and those consulting them should be sensitive to cultural traditions and take into account social justice principles of equity and accessibility. In this way, community ownership of the final outcome can be encouraged. 203. Clarity is also necessary on the nature and purpose of the specific meeting, whether it is for information and dissemination on the project and possible options, consultation to collect opinions or expand the range of options, or for taking decisions, for example on relocation site or village layout and house design. Participatory Rural Appraisal methodologies will be used where appropriate. Initial contact meetings should ideally start with commune-level familiarization although at this stage there is already a considerable awareness of the proposed project and so the initial step for the Consultation Strategy will be to explain how this approach differs and builds on the discussions already held, laying out the current status of planning, the decisions to be taken and the process to be adopted. 204. Separate consultation plans will be needed for each of the affected areas (see Table 14) with a level of intensity that is commensurate with the nature and scale of impacts, the numbers of people involved and the ability of existing administrative structures to reflect accurately the current situation. For each category, a multi-level approach can be used starting at commune and village level and progressively involving household groups and

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vulnerable groups separately. More detailed livelihood surveys for a sample of the population will be required particularly for directly affected people downstream and others that are generally excluded from the detailed inventories undertaken as part of the current national process. 205. Based on ADB’s operational manual,84 consultations on resettlement should cover the following: "The policy requires that the executing agency disseminates information to and closely consults affected people during resettlement planning and implementation. The consultation is to be carried out as early as possible in the project cycle so that the views of the affected people are taken into account in formulating the compensation and rehabilitation measures....Resettlement information on compensation and resettlement options must be disclosed to the affected people before the first MRM,85 in a form and language that they can understand. This may be in the form of a resettlement information brochure or leaflet, a summary resettlement plan, or a complete resettlement plan to be provided to affected people in a language they can understand, in an accessible place." 206. Consultation is proposed on the following:

i. For reservoir and upstream/downstream/project construction land impacts: During the inventory of losses of 100% of affected households – consult on: • categories of losses and their impacts • resettlement site options and preferences • entitlements for various types of losses • procedures and timing of delivery of entitlements, development of

resettlement sites, relocation • livelihood options and preferences

Present the summary of the draft RP (reflecting the results of the above consultations) for consultation, make any necessary revisions and feedback to PAPs as necessary.

ii. Similarly for issues related to watershed protection.

207. Socio-economic surveys also need to be carried out covering 10% of affected and 20% of severely affected people.86 208. The contact point for organizing meetings will be the Commune People's Committee who will make a public announcement of time and location of meeting, indicating who should attend the meeting and its purpose and expected outcome. A schedule of subsequent meetings with smaller interest groups can then be discussed. The Ca Tu language should be used throughout, and due to relatively low levels of literacy, a combination of written information leaflets, posters and pictorial booklets should also be used to communicate the key issues and options. 209. Consultants should work in collaboration with Assistance Working Group (AWG) to implement participatory consultation (see Section 3.5.3). AWG assists the consultants in the participatory consultation process by acting as a conduit for the two-way flow of information 84 OM Section F2/OP, 29 October 2003. 85 Management Review Meeting – an internal ADB process during loan processing following the loan fact

finding mission. 86 Based on discussions with ADB staff.

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between consultants and the broader villages. Further more, members of an AWG will provide the consultants with local knowledge regarding the range and diversity of interests within the villages. In assisting the consultants in participatory consultation, the AWG will conduct a range of information dissemination and information collection activities throughout the course of the study. 210. Phase II consultants will need to work closely with the local consultants recruited by HPPMB3 in implementation of the Consultation Strategy to arrive at a common approach that satisfies both GoV and ADB policy requirements and process.

6.5.2 Scope of Mitigation Measures 211. Drawing on experience from similar projects and based on the requirements of GoV and ADB policies, the following mitigation measures may be required:

• Resettlement villages with housing designed according to the wishes of the villagers and reflecting cultural values;

• Security of land tenure for each family (with provision of land titles in the names of both spouses) and for village territory and village common property resources.

• Replacement agricultural land – land management and land use planning should be part of Resettlement Plan;

• Sufficient space for rearing livestock, productive gardens and fish ponds;

• Adequate water supply for domestic and agricultural purposes;

• Plans for access and sustainable use of community resources (timber, NTFPs, fish etc);

• Community management of reservoir fisheries and other common resources;

• Provision of sanitation;

• All-weather access roads to markets;

• Adequate education;

• Health facilities, health care and food security during transition (including health and nutrition baselines) and health education (including awareness programs in HIV/AIDS, drug abuse, alcoholism and human trafficking);

• Access to reliable mains electricity at subsidized rates;

• Extension services in sustainable cropping and diversification of income generation;

• Transitional support for livelihood loss extending over several years with clear plan for phasing out transitional arrangements;

• Livelihood development programs appropriate to the culture and affordable level of inputs;

• Technical support;

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• Family crisis support;

• Role in community management of protected areas; and

• Employment opportunities.

212. Replacement of all losses and restoration to pre-project conditions is a minimum; however, the poor and vulnerable, such as these ethnic minority communities, should be assisted to improve their income levels and living standards. Replacement agricultural land is a minimum, but it is preferable to improve productivity such as through provision of land suitable for irrigated rice production. In fulfilling these requirements there is considerable scope for achieving both GoV and ADB priority objectives of reducing poverty in remote areas as a consequence of the Project.

6.5.3 Capacity Building 213. As indicated in Section 3.5 and similar to the need for strengthening capacity for environmental management, addressing and effectively mitigating social impacts is dependent on improving institutional capacity. The design, development, and implementation of the resettlement process will require strengthened institutions, experienced human resources, and financial capacity to achieve the objectives of ADB’s safeguard policies. Table 15 introduces some of the areas for consideration in capacity building.

Table 15: Proposals for Strengthening Capacity for Social Assessment and Management

Component Song Bung 4 Hydropower Project Potential for Capacity Development

Overall Corporate Structure – EVN

Corporate-level Social Policy

No corporate-level social policy

ADB could support development of an EVN social policy. ADB could include approval of social policy as loan covenant or loan condition.

Senior EVN member responsible for overseeing social policy and social matters

No senior-level EVN member with social studies qualifications responsible for overseeing social policy and/or social matters

ADB could include assignment of senior level person to social policy or social matters as part of loan covenant or loan condition.

Corporate-level social specialist responsible for implementing social policy

No social specialist for all of EVN’s hydropower projects.

ADB could include technical assistance for social assessment and social management and include outcome as part of loan covenant or loan condition.

Hydro Power Project Management Board No. 3 (HPPMB3), Power Engineering Consulting Companies (PECC3)

No social specialist in staff and limited capacity for resettlement planning and implementation.

Increasing social assessment and management skills in staff. ADB could include technical assistance such as: • training workshops to improve knowledge and

working skills in development projects; • providing methods and standards for

consultations with communities and participatory processes (especially ethnic minorities and vulnerable groups such as the poor, the aged, and women, etc. – for example, how to collect information, how to use Participatory Rural Appraisal, how to apply a gender approach in evaluating projects);


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Component Song Bung 4 Hydropower Project Potential for Capacity Development

Hydro Power Project Management Board No. 3 (HPPMB3), Power Engineering Consulting Companies (PECC3) (cont'd)

• providing socio-economic surveying methods- for example in PFS and FS phases to investigate carefully cultivable land include the quality of land of resettlement site;

• providing the staff of these groups with relevant documents: guidelines on participatory processes, guidelines and policies of the International Finance Institutions, guidance and case studies on implementing development projects in a cultural sensitive way with the objective of stabilizing livelihoods and creating income opportunities.

Village, commune and district level authorities

Weak capacity for resettlement planning and implementation

ADB could include technical assistance such as: • Organize training workshops to:

o raise awareness of involuntary resettlement and indigenous peoples policies for development projects and associated entitlements;

o review potential negative influences in the process of involuntary resettlement and how they can be successfully addressed in the local social and cultural context, preserving living environments and ethnic cultural traditions, etc.;

o raise gender awareness; o provide summary documents in an appropriate

format on involuntary resettlement: negative influences and how to overcome them (stabilize their livings, create jobs and employment, preserve traditional cultural values, etc.; and

o raise awareness about health and other social impacts of hydropower/construction projects and resettlement (increased risk of HIV/AIDs and other STDs, communicable diseases, human trafficking, rape, alcoholism, family violence);

• Improve methods and standards for consultations with communities and participatory processes, etc.;

• Organize field visits for representatives of affected people to derive lessons from other resettlement sites (for example the A Vuong and Song Hinh (SIDA- financed) Hydropower Projects); and

• Budgetary allocation for capacity-building for officers of village, commune and district levels to support affected people adapting to new living conditions.

Affected people No experiences in such development project , especially in resettlement process and Resettlement Plan

• Organize participatory consultations to raise awareness of the issues and provide an opportunity to give their opinions and expectations (see proposed consultation strategy)

• Provide communication documents in the form of leaflets about the project, compensation policies, the right to participate in process of project planning and implementation, etc.

• Organize field visits to derive lessons from other resettlement sites as for district officials.

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214. Underlying any capacity-building program is the reality that most of the expansion program for hydropower in Vietnam will be located in remote areas and the impacts will be experienced predominately by ethnic minorities. Recognizing and valuing differences of ethnic minorities and seeking culturally appropriate ways of working is already acknowledged as important. The challenge now becomes one of introducing this principle into day to day working practices and planning processes. Some areas where additional emphasis is required include:

• Earlier and more in-depth social and ethnic studies in order not to change the lifestyle and situation for the ethnic minorities involuntarily;

• Promoting the process of adaptive change, recognizing that it must be accomplished by the people themselves, and that they will inevitably have to devise many different ways of doing it; and

• Identifying local preferences through direct consultation, incorporation of indigenous knowledge into project approaches, and appropriate early use of experienced specialists are core activities for any project that affects ethnic minorities and their rights to natural and economic resources.

6.5.4 Policy Dialogue

215. This initial review of social issues related to the SB4 project has highlighted benefit sharing as a key area where further policy dialogue between ADB, GoV and EVN could lead to a more inclusive and comprehensive approach to the mitigation of social impacts. Such dialogue could contribute to the overall goal of poverty reduction and of ensuring that affected local communities benefit from the developments made in their vicinity in the national interest. In particular, the dialogue should focus on developing a framework and mechanisms for benefit sharing among directly affected people of hydropower projects (e.g. through a share of revenues).87 216. Addressing differences between the definition of directly affected people in GoV and ADB policies on resettlement as noted in Sections 6.2 to 6.4 will clearly facilitate future engagement between the two agencies and overcome delays in subsequent planning and processing of projects. 217. Adaptation to new conditions and restoration of livelihoods also requires long-term support and assignment of the responsibility and a source of financing for social and environmental impact monitoring and mitigation after physical project development is complete. Revenue-sharing mechanisms provide an opportunity for this, perhaps through opening a funding window of an environment fund. 218. As with environmental policy dimensions discussed in Section 5.5, further study on benefit sharing and the definition of directly affected people could be supported through technical assistance with linkages developed to the ongoing process of policy harmonization being discussed among the Government and donors. 219. Recommendations for capacity development assistance in Phase II PPTA include:

87 Various models exist in different countries, including assigning a proportion of revenues, establishment of a

trust fund, equity in the project. See for example a review undertaken by the World Bank on ‘Benefit sharing from dam projects’ at http://www-esd.worldbank.org/documents/bnwpp/2/FinalReportBenefitSharing.pdf

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i. EVN training (central level, HPPMB3 level) to strengthen their environmental and social safeguard management capabilities;

ii. MoNRE training (central level, QN and DN DoNREs) to support their ability to review hydropower project EIA reports; and

iii. Capacity strengthening to enable effective implementation of measures to overcome threats to the Song Bung 4 watershed management in accordance with ADB requirements.

220. There are also a number of opportunities outside the scope of PPTA Phase II to provide EVN with program-level support for improved environmental management capacity. These include:

i. Technical support to develop EVN and/or MoNRE Guidelines for cumulative assessment in the hydropower sector;

ii. Technical support to develop an Environmental Policy and other components of an environmental management system for EVN’s central level;

iii. Technical support to strengthen the legal framework for environmental management and assessment of hydropower sector (e.g. development of ministerial or prime ministerial circulars, decrees, regulations);

iv. Capacity building support for strengthening of corporate level environment unit; and

v. Include approval of environmental management system as a loan covenant or loan condition for future sector loans (if any) to MoI/EVN.

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7. SUMMARY OF RECOMMENDATIONS FOR SUBSEQUENT STAGES OF PROJECT PLANNING AND DEVELOPMENT

7.1 Conclusions 221. The preliminary review of the water resources, environmental and social aspects of the proposed Song Bung 4 Hydropower Project under Phase I of the PPTA has increased understanding of the issues to be addressed during Phase II from both ADB and EVN perspectives, clarified steps in the national planning processes and their current status, and facilitated scoping of inputs required for the next stage of investigation. 222. One of the questions raised during this assignment relates to the expansion of ADB’s support to the electricity sector in Vietnam to include hydropower generation. In particular, whether it is possible for SB4 to be implemented according to ADB policies and international good practice. The Consultants consider that it is possible to both meet the requirements of ADB’s safeguard policies and the general expectations of EVN on the timetable for implementation of the Project provided there are no significant delays in the mobilization of Phase II consultants (envisaged for September 2005) and there remains flexibility to incorporate Phase II recommendations in the Government’s planning processes and documents. The positive nature of the discussions held at EVN in the wrap up meeting for Phase I supported this view. 223. GoV is clearly committed to extensive expansion of hydropower. ADB’s entry into the sector at this stage offers an opportunity to significantly influence the implementation of both externally financed and nationally financed projects by taking a long-term commitment, including policy dialogue and capacity building in parallel to project specific support. Although at a relatively advanced stage of project planning, the SB4 project can provide such a vehicle. Risks clearly remain at a number of different levels, but these can be considerably reduced if a proactive stance is taken in areas such as offsets for biodiversity conservation, commitment to livelihood development, recognition of the needs of traditional cultures, and introduction of the principles of integrated water resources management. Additional financing modalities will be required for these elements in the short term coupled with policy dialogue to encourage their adoption in future projects in a more systematic way. 7.2 Recommendations for Planning and Development of the Song Bung 4 Project

and Related Activities 224. Recommendations for future processing of the proposed project, capacity building and policy dialogue are presented in sections in this report on water resources (Section 4.6), environment (Section 5.5), and social issues (Section 6.5). These are summarized below based on the proposed implementation arrangement and financing modality.

7.2.1 PPTA Phase II 225. Detailed comments on the TOR for Phase II and scope of the TA including social and environmental assessments have been provided separately by the Phase I consultants to ADB project staff. 226. As part of requirements for social and environmental assessment and the appraisal carried out on technical, economic and financial aspects, the following focus areas have been proposed for Phase II of the PPTA:

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i. Water resources (Section 4.6): • Assessing and optimizing alternative reservoir system operation rules

against a range of criteria through development of a computer simulation model for the Vu Gia Basin.

ii. Environment (Section 5.5):

• EIA technical assistance and preparation of an EIA and EMP including: ο studies to establish baseline information on aquatic resources

upstream, downstream and within the reservoir area; ο support to further develop a framework/budget for mitigating

impacts of forest cover loss; ο support to further develop assessment of cumulative impacts; ο support to mitigate impacts to Song Thanh Nature Reserve; ο studies and assistance to evaluate and manage highest priority

threats in the Song Bung 4 watershed; and ο support for strengthening the Environmental Management Plan.

• Capacity development assistance in relation to EVN and MoNRE for EMP and at provincial and district level for watershed protection.88

iii. Social (Section 6.5):

• Specific attention to the traditional and cultural values and norms of the ethnic minorities throughout the planning process;

• Social assessments and development of the Resettlement Plan, Ethnic Minority Development Plan and Gender Action Plan and Public Health Action Plan including consultation strategy (Section 6.5.1); and

• Capacity development assistance in relation to EVN, HPPMB3 PECC3 and provincial, district and commune level for resettlement planning and implementation (Section 6.5.3).

iv. Technical

• Issues related to introducing international good in dam design were included in the Consultants’ recommendations for study under Phase II including: ο options for introducing a bottom outlet for releasing water to the

river downstream of the dam and provide the opportunity for adaptive management;

ο viability of multiple offtakes and aeration devices to improve water quality;

ο potential for flushing reservoir sediment; ο options for using SB5 as a re-regulating reservoir for SB4; and ο dam safety - coordination with ongoing policy development under

the World Bank VWRAP project and provisions for warning of downstream population.

• As a cross cutting issue, a review of the proposed project against the seven strategic priorities of the World Commission on Dams was recommended.

88 The assessment of threats to sustainability of the reservoir suggested that a targeted approach to deal with

the source of these threats would be a viable approach to watershed management. Establishing a new watershed management board was not considered necessary. Issues that require cross-sectoral dialogue could be raised in the Water Resources Review Committee.

90

7.2.2 Livelihood Development Program

227. A grant financed program is proposed for improving livelihoods for indirectly affected people (see section 6.2.3) and those affected by other hydropower projects in the Song Bung sub-basin (as described in Section 6.4). Through this modality, ADB has an opportunity to add considerable value to its involvement with SB4.

7.2.3 Pilot Demonstration Activity for IWRM 228. A Pilot Demonstration Activity (PDA) is proposed to develop institutional capacity for IWRM. This would be initiated through establishment of a cross-sectoral Water Resources Review Committee for the Vu Gia Basin (Section 4.4.2).

7.2.4 Advisory TA Cluster – Policy and Capacity Building 229. A range of policy and capacity building aspects have been identified that go beyond the SB4 project. A cluster of technical assistance programs managed under the umbrella of ADB and including financial and technical support from other external financing agencies is proposed. Further elaboration of the scope of the TA Cluster can be developed jointly with the processing of Phase II of the PPTA. The proposed Cluster has three subprojects:

i. Subproject 1: Revenue sharing. Two components include: a) Benefit sharing for affected communities including options for targeting

of project revenues and approach to harmonizing definitions of directly affected people (Section 6.5.4); and

b) Watershed management – options for financing watershed protection services to enhance sustainability of the reservoir (Section 5.5.3).

ii. Subproject 2: Capacity building of EVN and provincial agencies for

environmental and social assessment and management. A number of areas of support are described in Sections 5.5 and 6.5.3.

iii. Subproject 3: Capacity building support for IWRM/RBO. The PDA is

intended to initiate cross-sectoral dialogue on IWRM in the Vu Gia - Thu Bon Basin. Longer term support and capacity building will be required after its establishment (in particular if the Committee recommends establishment of an RBO) and to finance specific technical studies in support of their discussions. (Section 4.4.2).89

89 One such study area is the strategic assessment of aquatic resources, consideration to protection of

designated tributaries and the concept of environmental flows (Section 4.4.3).

91

Song Bung 4 Hydropower Project, Vietnam

ADB TA 4475-VIE: PPTA Phase I

ANNEXES

1. PPTA Phase 1 – Consultant’s Terms of Reference 2. Bibliography 3. List of People Met 4. Stakeholder Analysis – Rights, Risks and Responsibilities 5. Organization Charts (EVN, FPD, STNRMB, DARD) 6. National Procedures for EIA Clearance 7. Institutional Arrangements for Harvesting Forest Products

under Decision 04/2004/Q 8. Responsibilities of National, Provincial and District Agencies in

Resettlement Planning under Decree No. 197/2004/ND-CP 9. Checklist of ADB Water Policy Implementation in Relation to

the Project 10. Initiating Integrated Water Resources Management in the Vu

Gia-Thu Bon River basin – Outline proposal for an ADB Pilot Demonstration Activity

11. Translation of Draft Letter from Song Thanh Management Board to HPPMB3

12. Information on Song Thanh Nature Reserve 13. Priority Projects Identified in the Quang Nam Conservation

Strategy 14. Involuntary Resettlement Policy in Vietnam 15. Notes on Visit to A Voung Resettlement Area 16. Summary of Mission Schedules 17. Photographs

Annex 1

92

Annex 1: PPTA Phase 1 - Consultant’s Terms of Reference 1. The implementation of the Phase 1 of the project preparatory technical assistance (PPTA) will require the services of a Senior Water Resource Planner, Environment Specialist and a domestic Social Development Specialist. The Water Resource Planner will be responsible for the coordinating the inputs of the other specialists with the aim of achieving a quality output within the required time frame. The Phase I of the PPTA will include the following tasks. 2. Senior Water Resource Planner (2.5 person-months – International)

(i) Take overall responsibility for coordinating the SSTA and consolidating the inputs of other specialists working on the SSTA into a Final SSTA Report;

(ii) Compile and review available reports, studies, and other relevant data related to the Vu Gia–Thu Bon River Basin, focusing on sustainable water resources management, ongoing and proposed social and economic development, and the consequences of such development on the environment in the basin;

(iii) Review the present institutional and legal frameworks for water resources management in the basin, and analyze the relationships among relevant agencies at the central and provincial levels and propose a strategy to improve the coordination of agencies involved in management of water resources;

(iv) Based on the input provided by the other experts in the SSTA team, identify the communities that are likely to be indirectly affected (i.e. both adversely and positively) by the project and other developments of the river basin (i.e., both downstream and upstream of the project site), make a preliminary assessment of the nature and severity of the likely environmental and social impacts, and provide recommendations for consideration by the social development experts of the Phase II of the PPTA. Prepare an indicative cost estimates of likely mitigatory measures (including environmental flows if necessary) of indirect impacts. The Social Development expert and the Environmental expert are expected to provide input to this task;

(v) Identify stakeholders who are involved or likely to be involved in planning, management, and development of basin water resources; and analyze their roles, rights, responsibilities, and relationships with other stakeholders;

(vi) Based on the National Hydro Planning study and other relevant studies, assess whether the proposed project is part of the optimum water usage strategy for the river basin. Asses whether the proposed project is in line with the current draft of the National Water Sector Strategy of Vietnam;

(vii) Make recommendations for strengthening the environmental and social safeguard management capabilities of EVN and the implementing agency (HPPMB 3), as necessary;

(viii) Recommend suitable institutional arrangement that may include a river basin organization (RBO) for the Vu Gia–Thu Bon Basin in the context of ongoing national initiatives to operationalize Integrated Water Resource Management (IWRM) and other ongoing initiatives at river basin level. Identify any necessary institutional capacity building for the recommended institutional arrangement; and

(ix) After reviewing the existing status of the watershed, on-going watershed management programs in the Vu Gia–Thu Bon basin (i.e. A Vuong Watershed management project supported by WWF) and the likely impacts of future

Annex 1

93

developments, recommend an indicative framework for watershed management and prepare detailed terms of reference (TOR) for developing a Participatory Watershed Management Plan and an indicative cost estimate of implementing such plan if watershed requires protection during Phase II of the PPTA.

3. Environmental Specialist (2 person-months – International) (i) Review all relevant documents and studies, in particular, the Environment

Impact Assessment of the Project currently being carried out by PECC3 under the feasibility study;

(ii) Review of experience with the environmental assessment and environmental management of similar hydropower projects in Vietnam;

(iii) Collect information on currently protected or planned protected areas in the Vu Gia–Thu Bon Basin including the management plans for these protected areas;

(iv) Review existing institutional arrangements for compensatory forestry and recommend an initial framework for implementing the compensatory forestry program for the project. Make an indicative estimate of the cost involved 90 and prepare a detailed TOR for the preparation of Compensatory Forestry Plan during Phase II of the PPTA;

(v) Coordinate with other specialists in identifying the communities and people likely to be both positively and adversely affected (both directly and indirectly) by the Project;

(vi) Based on review of documents and experience and participation in consultation activities, identify major environmental and social issues and concerns, including issues related to cumulative impacts;

(vii) Prepare an indicative cost estimate of the likely environmental mitigatory measures; and

(viii) In accordance with ADB’s Environment Policy (2002) and Environmental Assessment Guidelines (2003), the consultant will prepare detailed terms of reference (TOR) for the conduct of an Environmental Impact Assessment (EIA) including (i) preparation of an EIA Report and (ii) a SEIA Report; and for conduct of a Social Analysis required in the preparation of (i) a Resettlement Plan and (ii) an Ethnic Minority Development Plan.

4. Social Development Specialist (2 person-months – Domestic)

(i) Review all relevant documents and studies, in particular, the Resettlement Plan prepared during the prefeasibility study and the findings from the expanded scope of the Feasibility Study currently being carried out by PECC3 and the detailed measurement survey of affected people in the context of relevant ADB policies;

(ii) Identify any additional requirements to comply with ADB’s social safeguard policies and the indicative cost estimates of any additional requirements required;

(iii) Conduct site visits to identify the scope of the resettlement and livelihood impacts related to the study area of the Environmental Assessment;

(iv) Propose a strategy for undertaking participatory consultations with the affected people during the Phase II of the PPTA taking into cultural, education and social context of the affected people;

90 Compensatory forestry as defined by the ADB Forestry Policy (1995).

Annex 1

94

(v) Make an assessment of the EA/IA's capacity for managing and the enforcement capacity of social safeguard requirements of the provincial agencies of Quang Nam Province;

(vi) In accordance with ADB’s Policy on Involuntary Resettlement (1995), assist the Environment Specialist to prepare detailed TOR for the conduct of Social Assessment;

(vii) Identify any relevant sociocultural issues that needs to be considered in the detailed TOR for Phase II consultants responsible for preparing social safeguard documents to meet ADB requirements; and

(viii) Coordinate with other specialists in identifying the communities and people likely to be both positively and adversely affected by the Project and identify the specific gender related issues relevant for indirectly affected people.

5. The study area for the purpose of Environmental Impact Assessment should be divided into the following spatial areas: (i) the reservoir area for Song Bung 4; (ii) any new utility corridors, new access roads, new road alignments (e.g. highway 14 D), or road upgrading; (iii) the new resettlement area, (iv) construction camps and staging areas, (v) the downstream portion of Song Bung from dam site to power station, (vi) downstream portion of Song Bung from the power station to A Voung power station, (vi) downstream portion of Song Bung from A Voung power station to confluence with Song Vu Gia, and (vi) the 220 KV transmission line corridor. For assessment of cumulative impacts related to hydrological changes, the study area should also include: (i) reach of Song Bung from upper end to the Song Bung 2 reservoir to upper end of Song Bung 4 reservoir, and (ii) reach of Song Vu Gia from confluence with Song Bung to the sea. To estimate the changes in hydrological regime, which is necessary to assess the downstream impacts, the following hydropower projects are to be considered: Song Bung 4, Song Bung 2, Song A Vuong, and Song Bung 5. Preconstruction, construction, and operational impacts are to be assessed. 6. It is expected that the consultants will undertake field work of 1 month at the beginning of the assignment for collecting all the necessary information, data and reports of studies, to undertake consultations with relevant stakeholders from central government agencies, provincial agencies and non-governmental organizations and to visit the project sites required for completing the tasks mentioned above. At the completion of the fieldwork the consultants will prepare an issue paper highlighting (i) the key environmental, social and water resource management issues of the proposed Project; (ii) the scope of the watershed management, compensatory forestry plan, environmental impact assessment and the resettlement and other social safeguard documents to be prepared under the Phase II of the PPTA. A tripartite meeting will be held to discuss the issue paper with EVN and HPPMB 3. 7. The consultants will take into account the feedback received from ADB, EVN, and HPPMB 3 and produce the final draft report within 2 months of the assignment. The final draft report would also address all the items of the TOR. It would specifically provide a detailed TOR for the EIA, framework for compensatory forestry plan with an indicative cost estimate, and recommendation regarding RBO and watershed management.

Annex 2

95

Annex 2: Bibliography

ADB. 2005. Environmental Due Diligence of Son La and Huoi Quang Hydropower Station Projects. Draft Mission Report (restricted). BirdLife International. 2001. Sourcebook of Existing and Proposed Protected Areas in Vietnam. DANIDA. undated. Water Sector Program Support, WaterSPS – project brochure. ERM. June 2004. Harmonisation of Environmental Safeguard Procedures and Practices in Vietnam. EVN. 2004. Baseline Studies of Environmental Aspects, Phase II Report. GEC Global Environmental Consultants. 2003. Environmental Impact Assessment for Vietnam Resources Assistance Project, v2 report 4 Quang Hue – Vu Gia Control Works. GoV. 1998a. Electricity Law. ——— 1998b. Environment Law. ——— 1998c. Forestry Law. ——— 1998d. Water Law. ——— 2004a. Decree No. 149/2004/ND-CP on Regulation on Licensing of Water Resources Exploration, Expolitation and Utilisation and Waste Water Discharge into Water Sources, July 27. ——— 2004b. Decree No. 188/2004/ND-CP on Methods of determining land price and price frame for various types of land. Hanoi 16 November 2004. ——— 2004c. Decree No. 197/2004/ND-CP on Compensation Assistance and Resettlement when the State recovers land. Hanoi 3 December 2004. ——— 2004d. Decree No. 200/2004/ND-CP on Arrangement, Reform and Development of State Forestry Enterprises. Hanoi 3 December 2004. ——— 2004e. Land Law, Order of the State President No 23/2003/L-CTN dated 10 December 2003, effective 1 July 2004. National Political Publisher. Institute of Geography. undated. National Hydropower Study Stage 2. Baseline Studies of Environmental Aspects, Phase II reports: Vu Gia-Thu Bon, HPP Song Bung 4. Institute of Water Resources Planning. 2002. Preliminary Work on the Vu Gia–Thu Bon Basin Plan for World Bank Vietnam Water Resources Assistance Project (VWRAP). MARD Central Project Office. 2003. EIA for Vietnam Water Resources Assistance Project, Executive Summary (November 2003) & Vol 3 Draft Public Consultation Report (August 2003).

Annex 2

96

McGrath, T. and Nguyen Quang Ngoc. 2004. Central Region Water Resources Sector Project: Process for the development of Provincial Water Resources Investment Strategies, ADB RETA 6123. MoF. 2004. Circular No 116/2004/TT-BTC guiding the implementation of Decree No. 197/2004/ND-CP. Hanoi 7 December 2004. MoNRE. 2001. Environment Impact Assessment Hydropower Guidelines. ——— 2004. Project Document on cooperation between MoNRE and Norwegian Water Resources and Energy Directorate regarding Licensing of Hydropower Projects, Draft 20 December 2004. MPI. 2004. Final Result Analysis Report, Song Hinh Multipurpose Project. NIAPP. NHP report. Nippon Koei. 2003. Study on Nationwide Water Resources Development and Management in the Socialist Republic of Vietnam, for Japan International Cooperation Agency and MARD (8 volumes). ——— September 2003. Thu Bon Integrated River Basin Plan. Report prepared for the Vietnam Water Resources Assistance Project. Office of the National Water Resources Council. 2003. National Water Resources Profile. PECC3. undated a. Draft of Environmental Impact Assessment and Resettlement Plan of Bung 4 Hydropower Project. ——— undated b. Song Bung 4 Hydropower Project, Preliminary Environmental Impact Assessment PECC3. 2004a. September 2004. Bung 4 Hydropower Project Pre-Feasibility Study. Main Report ——— 2004b. Technical Drawings of Song Bung 4 (in Vietnamese). Stockholm Environment Institute. 2004. Resettled but not restored: Evaluation of the resettlement process in Song Hinh Hydropower. SWECO. undated. Vu Gia Thu Bon Basin report ——— 2004. National Hydropower Plan Study, Stage 2, Inception Report. Vietnam Water Partnership. 2004. Discussions in Vietnam on the Report of the World Commission on Dams, Scoping Report. World Bank. 2004. Vietnam Water Resources Assistance Project, Project Appraisal Document. ——— 2005. Vietnam Hydropower Generation, Review of Environmental Safeguards. Draft Report (restricted).

Annex 3

97

Annex 3: People Met Central Government Agencies

Lam Du Son Vice President, Electricity of Vietnam Ho Viet Hao Specialist, Project Appraisal Department, EVN Le Thi Ngoc Quynh Environmental Specialist, EVN Luong Lan Dung International Cooperation Department, EVN Tran Van Hai Chairman, Hydropower Project Management Board No. 3, EVN Tran Ngoc An Project Manager, Song Bung 4, HPPMB3, EVN Nguyen Minh Chien Deputy Chief, Environment- Resettlement Department, HPPMB 3 Tran Van Hon Officer, Environment- Resettlement Department, HPPMB 3 Pham Dinh Duy Interpreter, HPPMU3, EVN Le Thi Bach Duong Dispatch Centre, A3 Da Nang, EVN Pham Thanh Trong Dispatch Centre, A3 Da Nang, EVN Ho Van Tai Director, International Cooperation, Ministry of Industry Do Duc Quan Deputy Director, Energy and Petroleum Dept. Mo Ms Hong State Bank of Vietnam (ADB desk) Pham Xuan Su General Director, Department of Water Resources, MARD Le Duc Nam Deputy Director, Department of Water Resources, MARD Pham Cuong Hung Department of Water Resources, MARD Nguyen Quang Duong Vice Director, Department of Forestry, MARD Nguyen Tuong Van Env. Management and Forestry Economic Planning Division, MARD Dao Trung Chinh Deputy Director, Department of Land, MoNRE Nguyen Thai Lai Director, Dept. of Water Resources Management, MoNRE Hung Dept. of Water Resources Management, MoNRE Hoang Dong Tung Center for Environmental Monitoring, Data and Information Provincial Agencies

Quang Nam

Le Minh Anh Vice Chairman, Quang Nam People's Committee Tran Van Tri Director, Department of Planning and Investment Nguyen Chanh Duc Economic Management Division, DPI Huynh Van Muoi Expert, DPI Ho Tan Son Director, Department of Agriculture and Rural Development Planning

Department, DARD Nguyen Hoai Phung Deputy Director, Irrigation Bureau, DARD Nguyen Minh Tuan Deputy Director, Irrigation Bureau, DARD Duong Chi Cong Director, Department of Natural Resources and Environment Luu Van Ba Chief, Natural Resources and Environment Division, DoNRE Nguyen Van Ba Deputy Chief, Natural Resources and Environment Division, DoNRE Doan Van Thanh Chief, Water Resources Management Division, DoNRE Ho Xuan Tinh Deputy Director, Department of Culture and Information (DoCI)

Annex 3

98

Do Thinh Chief, Professional Management Division, DoCI Nguyen Thanh Thai Vice Director, Department of Industry Vo Thi Head, Electricity Mgmt. Division, Department of Industry Dinh Van Phuc Vice Officer, Department of Industry Diep Thong Phuong Head, Forest Protection Department Thai Truyen Deputy Chief, FPD Dong Dinh Nguyen Chief, Forest Protection Division, FPD Tran Van Thu Vice Director, Song Thanh Nature Reserve Management Board Ho Tuan Officer, STNRMB Anh Vau Hong Officer, STNRMB A Lan Tia Deputy Manager, Committee for Ethnic Minorities Nguyen Van Thanh Staff, Committee for Ethnic Minorities

Da Nang Nguyen Truong Anh Deputy Director, Da Nang Water Supply District, Commune and Village

Cho Rum Nhun Chairman, Nam Giang District People's Committee Nguyen Huu Duong Chief, Planning and Investment Dept., Nam Giang District Nguyen Tien Dung Chief, Natural Resources and Environment Dept, Nam Giang District Phuc Field visit, Natural Resources and Environment Dept, Nam Giang District Ta Ngon Da Community chairman, Zuoih commune Blang Nuoc Village chief, Village 2 Blinh Hanh Chief of Father's Front Blin Dong Village chief, Pa Di Village A Viet Co Village chief, Pa Rum B Village Blin A Do Village chief, Con Don Village Zo Rum Nhiu Village chief, Pa Rum A village Alang Bang Community Chairman, Mo Coi Commune, Dong Giang District Multilateral and Bilateral Agencies

Phil Brylski Sector Coordinator, Environment and Social Development Pham Hung Cuong Sr. Operations Officer, Rural Development and Natural Resources Mgmt. Phil Grey Energy Specialist, World Bank Makoto Uchida Representative (Energy), Japan Bank for International Cooperation Francis Frey Senior Programme Officer, Agence Française de Développement Nicole Motteux Vietnam Program Coordinator, US-Asia Environmental Partnership Bradford Philips Country Director, ADB Hanoi Pradeep Perera Financial Specialist, ADB Manila Pieter Smidt Senior Implementation Officer, ADB Hanoi William Costin Senior Implementation Officer, ADB Hanoi Nguyen Nhat Tuyen Social Development Officer, ADB Hanoi

Annex 3

99

Consultants

Duong Thi Thanh Truc Head, Environment and Scientific Research, Power Engineering & Consulting Company No. 3

Nguyen Thi Anh Thi Deputy Manager, Hydroelectricity Design Dept, PECC3 Goran Lifwenborg Team Leader, National Hydropower Project TiiaRiita Granfelt Socio-economist, National Hydropower Project Dam Kim Nhung Institute of Geography Des Cleary Team Leader, National Coordination for Water Resources Mgmt. Colin Steley Project Management Expert, Second Red River Basin Sector Project Poul-Erik Frederiksen Chief Technical Adviser, Water Sector Program Support, DANIDA Jesper Knudsen Team Leader, Support to Capacity Building Water Resources Institutes Tim McGrath Senior Consultant, Rural Development and Poverty Reduction Vic Hobcroft Team Leader, Dong Nai Water Resources Project Cecil Hood Consultant on Land Law Steven Dudka Tiberon Minerals Ltd. NGOs

Jack Tordoff Regional Coordinator, Asia Programme, BirdLife International Pham Tuan Anh Vietnam Programme Manager, BirdLife International Vu Minh Hoa Program Officer, Wetlands and Water Resources, IUCN Jessica Illaszewicz Programme Assistant, IUCN Dao Thi Viet Nga International Rivers Network Dan Rocovits World Village Foundation Nguyen Hoang My Quynh World Village Foundation Lan Huong World Village Foundation Barney Long Coordinator, MOSAIC Programme, WWF, Quang Nam Fergus MacDonald Forest Conservation Officer, WWF Indochina, Vietnam Programme Richard McNally Coordinator, Vietnam Annamites Ecoregion, WWF Indochina

Annex 4

100

Annex 4: Song Bung 4 Hydropower Project – Preliminary Stakeholder Identification (draft 15 April 2005)

This annex is presented as a draft framework and work in progress for more detailed development and completion during Phase II as – including articulation of the rights under national legal and regulatory framework and customary rights.

Interest Groups Organization / Groupings Rights Risks Responsibilities

Gov

ernm

ent

Central Government National Assembly

Communist Party

Ministry of Planning and Investment

Ministry of Finance

Ministry of Industry

Ministry of Natural Resources and Environment (EIA, WR Licensing)

Ministry of Agriculture and Rural Development (forestry, agriculture, rural development)

Ministry of Science and Technology

Ministry of Public Health

Hydrometeorology Department State Bank of Vietnam

• Ultimate decision making authority

• Development mandate and right to manage natural resources provided by Constitution (Arts. 17,18...) and sector legislation

• Regulatory functions (e.g. Investment License, EIA,…)

• State Management functions (Water Law Art 2, 22, 23), Environment Law (…), Forest Law (…), …

• Right to develop water/energy resources and protect the environment pursuant to national laws and regulations (…)

Right to appropriate land for public purpose (Land Law Arts. 105, 107, 109)

• Risks related to the right and duty to formulate national development policies

• Risks inherent in undertaking dam projects against those of other initiatives and ‘do nothing’ options (given demand for water and electricity services)

• Macro-level and external risks, e.g. regional security, global and regional economy, and climate change

• Risks of public rejection of government choices

• Risks of failure of economic, public safety or environmental regulation

…

• Commitment to sustainable development

• Codifying international commitments into national laws (e.g. MDGs, Conventions, including protecting rights of individuals under Int’l Covenants of Civil and Political Rights (IECPR) and Economic, Social and Cultural Rights (IESCR) ratified in 1982)

• Establishing policies and guidelines for resettlement, environmental protection, etc.

• Master plans for electricity provision (EVN), water resources management (MARD), water supply to all citizens (WASA), etc.

• Public safety • Commitment to Integrated

Water Resources Management

Annex 4

101


Central Government (cont'd) • Duties defined under the UN Declaration on Right to Development (Article 2(3)) – e.g. policies and legal framework to meet development needs and e.g. policies and legal framework to meet development needs and development

• Approvals of Pre-feasibility study, Feasibility Study, EIA, Resettlement Plan, Investment License, License for Hydraulic Infrastructure

• Providing enabling environment for consultation processes including appeals mechanisms

• Comply with agreements reached on mitigation measures

• Monitoring of policy implementation

…

Gov

ernm

ent

Provincial Government Provincial People's Committees (Quang Nam and Da Nang)

Depts. of Planning and Investment Depts. of Agriculture and Rural Devt. (flood, irrigation, forestry..)

Irrigation Management Companies

• Rights delegated to provinces from central level – similar to above for programs and projects within provincial jurisdiction

• Risks of unanticipated impacts and their affect on the people and natural resources of the province

• Risks of public rejection of government choices

•

• Similar to above for projects and processes within provincial jurisdiction

Particular responsibility for implementation of: • land administration • forest protection • water quality • water supply provision • irrigation management and

flood protection

Annex 4

102


Provincial Government (cont'd) Depts. of Natural Resources &

Env (land administration, water quality, ….)

Forest Protection Depts.

Depts. of Industry

Department of Information and Culture

Committee for Ethnic Minorities

Provincial Flood Committee

Provincial Compensation, Resettlement and Assistance Board

Water Supply Companies

• Review, approval and implementation of Resettlement Plan

• Monitoring of policy and project implementation

Gov

ernm

ent

District Administration District People's Committees and associated departments of Nam Giang. Other districts upstream and downstream that may be affected include Dai Loc, Dong Giang, Duy Xuyen, Da Nang and Hoi An

• Similar to above • Recommendation of

resettlement plan

• Risks of unanticipated impacts and their affect on the people and natural resources of the district province

• Risks of public rejection of resettlement options

• Particular responsibility for local level implementation of

• resettlement and land allocation

• forest management • local water supply • environmental

management

Dev

elop

er

Dam developer / owner/ operator / utility

Electricity of Vietnam (EVN)

Hydro Power Project Management Board No. 3 (HPPMB3) (implementation)

• Rights for planning, investment and development established under its statute

• Right to utilize national water resources subject to regulatory framework (Investment License (MPI), EIA Certificate (MoNRE), Water Resources License (MoNRE)

• Geological, hydrological risk

• Construction risk, dam safety

• Market risks – economic risks

• Risks of unforeseen impacts (environmental, social, sedimentation.)

• Financial risk of delay • Reputational risk

• Conform to procedures and norms of national laws

• Act in accordance with corporate guidance and statements of corporate social responsibility (see EVN website)

Annex 4

103


Dev

elop

er

Dam developer / owner/ operator / utility (cont'd)

Hydropower Operating Board (Central Region) – currently under HPPMB 3

EVN Regional Dispatch Centers (A0 – Hanoi and A3 – Da Nang)

EVN Environment Dept

• Right to acquire land under Land Law (Art. 105, 107, 109)

• Contractual rights …

• Comply with commitments of environmental management plan, resettlement plan and ethnic minority development plan

• Financing of resettlement plan and environmental management plan measures

• Comply with covenants of financing agencies

• Internal monitoring of mitigation measures

Affe

cted

Peo

ple

/ Com

mun

ities

Communities to be resettled in reservoir area

Villages in Zouih commune (940 people): • Pa Rum A (195 people) • Pa Rum B (247 people) • Pa Dhi (251) • Thon 2 (247)

Ta Bhing commune: Possibly Ta Bhing (60 people to be verified)

• Constitutional rights (1992) (Arts. 17, 18, 23, 58)

• Rights to land - Land law (Art. 105,106)

• Right to compensation – Land Law (Art. 39, 42, 106) and Decree 197/2004/ND-CP (Art. 18- 26)

• Rights of access to water for household use -Water Law (Art 1, 22, 23) Land Law (102)

• Right of access to fish in river - Water Law (Art 1, 22)

• Access to forest resources – Land Law (Arts. 75, 76, 77)

• Traditional / customary rights – Land Law (Art 100, 101); Decree 197/2004/ND-CP (Art. 23)

• Rights to ancestral property -Land Law (Art 98- 99); Decree 197/2004/ND-CP (Art. 22)

• Risks to income and livelihood and absorbing proposed resettlement measures

• Risk of insufficient cultivable land

• Loss of access to natural resources and common property, (river, forest, agricultural and grazing land)

• Risk to absorbing the shock of dislocation/disruption

• Loss of cultural identity • Break up of domestic group

relationships • Risk of loss of living

condition in natural environment

• Health risks including STDs • Risks to future generations

of biodiversity loss • Risks of trafficking in

women and children, child labor and other social evils

• Participate in planning consultations and negotiations on mitigation measures

• Declare current livelihood status, problems and needs

• Assist authorities in implementation of agreements reached on resettlement mitigation

• Notify authorities of non-compliance issues

• Follow grievance redress procedures

• …

Annex 4

104


Communities to be resettled in reservoir area (cont'd)

• Right to complain – Land Law (Art 106, 138, 139); Decree 197/2004/ND-CP (Art. 49)

• Rights of ethnic minority people – Constitution of Social Republic of Vietnam (1992)

• (Art. 5); Instruction 525/TT issued by the Primer Minister on November 2, 199391

• Entitlement to livelihood improvement under ADB involuntary resettlement policy…

Communities affected by construction areas, works camps, power station, access roads, transmission lines

Villages in Zouih, Ta Bhing, Chaval, Dai Loc and adjacent communes to transmission line corridor. Location and numbers of people to be determined in Phase II

• As above • As above • As above

Affe

cted

Peo

ple

/ Com

mun

ities

Host communities for resettlement

Zouih commune – locations to be decided (Cong Don, Pa Bang, Khe Zouih, Khe Rong), also possibly Cha Val and Ta Bhing communes. Location and numbers to be determined in Phase II

• As above • Threats to income and livelihood due to pressures from incoming population

• Risk of limitation of cultivable land

• Pressures on natural resources and infrastructure

• Threat to cultural identity • Threat to domestic group

relationships

• Participate in planning consultations and design of mitigation measures

• Assist authorities in implementation of agreements reached on resettlement mitigation

• Obligation towards integration of incoming people

91 Art. 5 of the Constitution of the Socialist Republic of Vietnam (1992) reads: "The Socialist Republic of Vietnam is the unified State of all nationalities living on the territory of

Vietnam. The State carries out a policy of equality, solidarity and mutual assistance among all nationalities, and forbids all acts of national discrimination and division. Every nationality has the right to use its own language and systems of writing, to preserve its national identity, and to promote its fine customs, habits tradition and culture. The state carries out policy of comprehensive development and gradually raises the material and spiritual living conditions of the national minorities".

Annex 4

105


Host communities for resettlement (cont'd)

• Health risks including STDs • Risks to future generations

of biodiversity loss • Risks of trafficking in

women and children, child labor and other social evils

…

• Monitoring - notify authorities of non-compliance issues


…

Upstream riverine communities (fishing, use of water for drinking and agriculture, area in backwater of reservoir)

Tay Giang District (SB2) • Ga Ri, Chom, A Xan, A

Truy communes

Nam Giang District (SB4): • Ta Bhing, Zouih, La Ee,

Chaval, Dac Pre, Dac Pring, La Dee, Xa laee

Tay Giang District: • Lang commune

Location and numbers to be determined in Phase II

• As above • Threats to income, livelihood and nutrition due to changes in hydrology and aquatic resource impacts i.e. risk to fish stocks due to dam construction and blockage to fish migration

• Risk of increase flooding by backwater of reservoir


• …


• Assist authorities in implementation of agreements reached on environmental mitigation

• Monitoring – notify authorities of non-compliance issues


• …

Affe

cted

Peo

ple

/ Com

mun

ities

Downstream riverine communities (fishing, riverbank agriculture, water supply, flooding)

Nam Giang District: • Ta Bhing, Zouih, Thanh My Dai Loc District: • Dai Son, Dai Hong Dong Giang District: • Ma Cooih, KA Dang, Dai

Lanh, Dai Long, Dai Quang, Dai Nghia, Dai Hiep

Da Nang Municipality Duy Xuyen District Hoi An municipality Extent of downstream impacts to be determined under Phase II

As above • Threats to income, livelihood and nutrition due to changes in hydrology and aquatic resource impacts i.e. risk to fish stocks due to dam construction and blockage to fish migration

• Risk of contamination of water supplies and fish loss due to low water quality

• Risk to public safety of dam break and unannounced power station discharge





• …

Annex 4

106


Affe

cted

Peo

ple

/ Com

mun

ities

Watershed As for upstream communities • Right to land • Right to utilize forest

resources • Rights of protection to

provincial conservation areas, special use forest)

• Risk of exploitation of forest areas and increased hunting from in-migration and improved access roads

• Risk to biodiversity in particular Song Thanh Conservation Area

• Risk of increased soil erosion sue to access roads and cultivation


• Assist authorities in implementation of agreements reached on environmental mitigation

• Compliance with conservation regulations related to the nature Reserve



Peripheral impact zone (pressure on resources, rural business (service provision, catering, entertainment …), loss of traditional values, social disruption)

Indirect impact zones to be determined during Phase II.

• As above • As above • As above

Lowland urban areas (water supply, flooding)

To be determined on basis of model simulations: • Dwellings in floodplain,

(reduced flood peak) • Da Nang Water Supply

(reduced salinity)

• To be completed • No project specific risks - Positive impacts expected although scope remains to optimize flood and salinity benefits

• To be completed

Affe

cted

Peo

ple

/ Com

mun

ities

Lowland rural areas (agriculture, water supply, flooding, salinity)

To be determined on basis of model simulations: • Farmers in ?? communes

(increased dry season irrigation, reduced flood peak)

• Villages in ?? communes (increased dry season water levels, reduced flood peak)

• To be completed • As above • To be completed

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107


Affe

cted

Pe

ople

/ C

omm

uniti

es Industrial users List industrial areas potentially

affected: • Sand extraction from rivers

• To be completed • As above • To be completed

Fina

ncie

rs

Financiers (public, private, domestic, foreign)

Project financing: • Govt. (MoF) • Asian Development Bank • Co-financiers? • Provincial and District (for

resettlement component) • Local banks • Export Credit Agencies (for

equipment, contractors) Related development programs: • Danida (Water Sector

Support) • World Bank (VWRAP) • NORAD / Sida (Nat’l

Hydropower Plan, Hydropower Licensing)

• Investment rights (as provided in mandates of international organizations, national commerce law, trade treaties, procurement regulations, etc)

• Rights for recourse to arbitration prescribed in international agreements, or prescribed in contracts made in the country that invoke international charters (e.g. FIDIC)

• Right to invest in property in accordance with national legislation

• …

• Investment risk (composed of competitive risk, market risk, political risk and project risks)

• Reputational risk • …

• Compliance with national laws and regulations

• Compliance with safeguard policies (IFIs, ECAs etc)

• Implement industry standards and international good practice (e.g. Equator Principles)

• Corporate behavior linked to national laws and international commitments, where they are codified in national law

• Compliance with development orientation (for development finance institutions)

• Responsible to shareholder expectations

• …

Oth

er

Other interested parties Vietnamese unions / associations: • Fatherland Front • Women’s Union • Youth Union • Cooperatives • Water User Associations …

• Rights established under governing law and mandate of the organization

• Right of access to information

• Right to consultation and participation in decision-making processes

• Right to seek redress in case of violations of the rights of interest groups or contractual violations

• Risks to interests of its membership

• …

• Accurate representation of the views of interest groups

• Objective monitoring and analysis

• Independence / disclosure of interests

• …

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108


NGOs: • WWF (MOSAIC program) • BirdLife International • World Village Foundation • Int’l Rivers Network


• Rights to freedom of expression (including representation of environmental interests as defined in international conventions and national legislation)

• Right to consultation and participation in decision-making processes??

• Right to seek redress in case of violations of the rights of interest groups or contractual violations

• Risks to interests of its membership

• Risks to the environment, endangered species

• Reputational risk


• Objective monitoring and analysis

• Independence / disclosure of interests

Oth

ers

Other interested parties (cont'd)

Consultants: • PECC3 (SB4 consultant) • Resettlement consultant • Inst. Water Res Planning • SWECO (NHP consultant) • ADB-PPTA Phase 1 and 2

consultants


• Rights under commercial law

• Contractual rights

• Commercial and financial risks

• Unforeseen impacts • Professional risk • Reputational risk

• Follow national standards and procedures and donor policies

• Good practice • Act in accordance with

corporate guidance and statements of corporate social responsibility


• Independent monitoring and evaluation

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109


Contractors: • Civil, M&E works • Equipment suppliers • UXO clearance (Van

Truong Co.)


• Rights under commercial law


• Commercial and financial risks

• Construction risks • Unforeseen impacts • Professional risks • Reputational risk

• Follow national standards and procedures and donor policies

• Good practice • Act in accordance with

corporate guidance and statements of corporate social responsibility Comply with commitments of environmental management plan, resettlement plan and ethnic minority development plan

• Internal monitoring

Oth

ers

Other interested parties (cont'd)

Universities / academics Professional associations Dam safety inspectorate



• Professional risk • Reputational risk

• Independent monitoring • Regulation of standards

Note: Sub-sets of the stakeholder analysis can be prepared for a range of different purposes by extracting the relevant groups of stakeholders – for example for (i) discussions on integrated water at river basin level, (ii) planning and design of social and environmental mitigation measures, (iii) operational aspects once the project is commissioned. EIA zones defined by ADB: 1. Reservoir area

2. Access roads 3. New resettlement area 4. Construction area and camps 5. Bung River - dam to power station. 6. Bung River – power station – A Vuong confluence 7. Reservoir area 8. Access roads 9. New resettlement area

10. Construction area and camps 11. Bung River - dam to power station. 12. Bung River – power station – A Vuong confluence 13. Bung River – A Vuong to Vu Gia 14. Transmission line 15. Bung River – upstream SB4 16. Vu Gia river to sea 17. Watershed 18. Peripheral impact zone

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110

Annex 5 – Organization Charts – EVN, FPD, STNRB, DARD 1. 2. Annex 5.1: Electricity of Vietnam 3.

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111

Annex 5.2: Organizational Chart of Quang Nam Forest Protection Department

Director

Vice-Director Vice-Director

Forest Management

and Protection

Legal Administration Mobile Unit

Vice-Director

Forest Management

and Protection

Legal Administration

Ranger Stations

Rangers

Technical Support

District Director A

District Director B

District Director C

District Director n..

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112

Annex 5.3: Organizational Chart of Song Thanh Nature Reserve Management Board

Cha Val CenterPesonnel: 03

Phuoc Son CenterPesonnel: 02

Communities & Development Dept.Personnel: 05

Technical & Planning Dept.Pesonnel: 02

Administrative & Pesonnel Dept.Pesonnel: 02

Regulation Inspector Dept.Pesonnel: 01

Accounting Dept.Pesonnel: 01

TaBhing StationPersonnel: 07

Lan Vien StationPersonnel: 06

Forest Protection Division

Mr. Tran Van thuDirector

(Acting Director)

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113

Annex 5.4: Organizational Chart of the Quang Nam Department of Agriculture and

Rural Development ORGANIZATION CHART OF QUANG NAM DEPARTMENT OF AGRICULTURAL RURAL DEVELOPMENT

Mr. Phan Van HauVice Director

(Forestry)

Mr. Nguyen Thanh QuyVice Director

(Breeding)

Rural Development Sub-dept.

Forestry Sub-dept.

Irrigation Sub-dept.

District stations

Vegetable Protection Sub-dept.

District stations

Veterinary Sub-dept.

Experimental Centers

Center for Agriculture &Agricultural Encouragement

Portable Water Center

Administration group

Agricultural & Rural DevelopmentProject Management Board

Forestry ProjectManagement Board

Project Management Boards

Phuoc SonAfforestration Yard

Ca DyAfforestration Yard

Song KonAfforestration Yard

Tra MyAfforestration Yard

Quyet ThangFarm

Forestry ProductsExport Company

Thu Bon Argricultural &Forestry Products Export Company

Prao Argricultural &Forestry Products Export Company

Afforestration YardsFarms, Production Co.

Secretariat

Mr. Vo Van CuongVice Director

(Plantation)

Mr. Nguyen Van TienVice Director

(Irrigation)

Mr. Nguyen Van CapVice Director

(Co-operative Economy &Settled Residence - Fixed cultivation )

Mr. Ho Tan SonDirector

(General management)

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114

Annex 6: National Procedures for EIA Clearance a) FOR DOMESTIC-FINANCED PROJETS: under CP 490/1998, Guidelines for Setting Up and Appraising EIA, a preliminary EIA is required with the FS as part of the investment license application. The preliminary EIA must have the following contents:

I Summary of Major Environmental Impact Factors 1. Describe data on existing environmental conditions. 2. Describe the production technology processes (raw materials used,

list of chemicals, etc). This is more for industrial projects, not so relevant to hydropower.

3. Describe major factors that may cause environmental effects, give estimates of air emissions, wastewater, noise levels). Predict level of effects on the environment.

II Summary of Proposed Remedy Options for Negative Environmental

Effects of the Project. In most cases the preliminary EIA is a couple of pages long, very general and not requiring a lot of effort. The full-scale EIA is required after the investment license is received and before construction begins (i.e. during detailed design).

b) FOR FOREIGN FINANCED PROJECTS: The full scale EIA, as specified in CP 490/1998 is to be submitted prior to, and a condition of, receiving the investment license application. This clause is set up to accommodate WB, ADB, and other donor’s need to complete the EIA earlier in the project cycle. In this scenario, one copy of the FS must be submitted along with eight copies of the EIA (seven copies in VN, one copy in English), to MoNRE’s EIA review committee.

Guidance for establishing EIA review committees for Category I projects is found in: Government Decree 175/CP 1994: Government Decree on Providing Guidance for the Implementation on the Law on Environmental Protection,

Article 15 of the decree states:

2) a. The Ministry of Science, Technology, and Environment shall decide the establishment of an Appraising Council at the Central Level.

3) The composition of the Appraising Council includes scientists, managing officials, possibly the representatives of social organizations, and ordinary people. The number of Council members cannot exceed 9.

In practice the minister will invite:

• MoNRE’s EIA Department Director to chair the Appraising Council (more commonly called the “ review committee”

• At least one EIA Department staff member to co-ordinate the committee • The DoNRE director of each impacted province

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115

• Well-known Vietnamese technical experts (usually associated with MoNRE) who can provide a rigorous critique of the subject area

• One representative from the proponent agency (e.g. for hydropower, the minister may invite one representative from MOI or EVN).

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116

Annex 7: Institutional Arrangements for Harvesting Forests Under Decision 04/2004/Q

1. Department of Forestry (i) Timely provide guidance of all legal documents and instructions by the

Government in the field of State management on forest harvesting.

(ii) Submit to the Prime Minister the annual harvesting plan for harvest timber and other forest products.

(iii) Assign target for volume to be harvested from natural forest for the following year to provinces and cities.

(iv) Carry out appraisal of harvesting designing records and business production plans for provinces and cities.

(v) Summarize timber harvesting plan and submit it to the Ministry of Planning and Investment for assigning official plans to localities.

(vi) Submit to Ministry to make decisions allowing provinces in whole country to open forests for harvesting.

(vii) Check management of forest harvesting undertaken by localities and units.

(viii) Steer and approval forest management plan for forest owner.

(ix) Process potential problem in harvesting within competent assigned by Ministry.

2. Provincial People’s Committee

(i) Chairmen of the provincial People's Committees and cities must be responsible for State management towards each forest type in local area. Steer all district and commune administrative levels to implement fully the function of State management over the whole area. Gradually remove and proceed to stop illegal forest destruction.

(ii) Regularly check and supervise DARD, Provincial Forest Protection Department, relevant committees and sectors to implement State management function on forest harvesting. More specifically:

(iii) Detail and direct the implementation of legal documents of the Government, sectors relating to harvesting on the provincial area.

(iv) Supervise and direct the DARD to review and approve detailed harvesting plan of each forest owner summarizing harvesting designs and make decisions for granting harvesting permits after the decision for opening the forest for harvesting has been issued by the Ministry of Agriculture and Rural Development.

(v) Steer provincial departments, committees and sectors relating to the implementation of regulations on forest harvesting management.

(vi) Steer administrations at district and commune levels to perform fully the function of State management on forest harvesting within the area of their responsibility.

3. Provincial Department of Agriculture and Rural Development

(i) Provide guidance of all legal documents and instructions by the Ministry of Agriculture and Rural Development and the Provincial

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117

People’s Committee in the field of State management on forest harvesting.

(ii) Based on the annually harvesting target assigned by the Ministry of Agriculture and Rural Development, assign yield target of harvesting plan to forest owner, submitting Provincial People's Committee, steer design harvesting of forest owner according to this regulation.

(iii) Push up the designing for harvesting; carry out evaluation of forests and approve harvesting designs for units under the province.

(iv) Summarize main harvesting plans in the whole province, then submit to the Provincial People’s Committee for approval and submit to the Ministry of Agriculture and Rural Development.

(v) Carry out giving timber and other forest products harvesting permits for forest owners as stipulated at this regulation and make decision for harvested termination with the units who do not follow the rules.

(vi) When time for harvesting terminates, implement procedures for certifying harvesting and closing the forest gate. Make public the forest areas to be opened for harvesting and closing the forest gate after harvesting.

(vii) Manage and instruct the use the tree marking seal which following current regulation of the MARD.

(viii) Co-ordinate with Provincial Forest Protection Department checks and supervises harvesting activities.

(ix) Make harvest design cost, forest appraisal, marking added trees in main harvesting, utilized harvesting, salvage harvesting then submit to Provincial PC for decision and guiding the implementation of the provincial decisions.

(x) Approving and announcing log storage system to forest owners following this regulation.

4. Forest Protection Department

(i) Check and supervise forest harvesting conducted by forest owners and harvesting units in accordance with the Law.

(ii) Detect timely violations of regulations on harvesting of forest products of organizations and individuals in forest harvesting so as to timely treat according to current stipulations.

(iii) Implement to mark with FPD seal correctly at log storage as stipulated at Decision 69/2001/QĐ- BNN- KL for making files for history of timber, forest products of forest owner and calculated permit error as clause 3 article 15 of Decision 69 and refer to clause 1 article 20 of this regulation as a basis for natural resources tax (if products from natural forest) and circulating of forest products.

(iv) Only permit for making FPD seal on sections, internodes... have marked by forest owner with tree marking and number with paint on timber histories; legal circulating timber must fully tree marking seal and FPD seal on the timber.

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5. Institutional Arrangements for Reporting (i) Forest owners belonging to the Province, report to the Provincial

Department of Agriculture and Rural Development and also send report to the local district.

(ii) Forest owners belonging to Companies or Corporations not under supervision of the province, report to the companies, Corporations and Provincial Department of Agriculture and Rural Development and also send report to the local district.

(iii) Forest owners belonging to Sectors (army, Interior, Education, etc) report to the upper management bodies and Provincial Department of Agriculture and Rural Development.

(iv) Harvesting by households is responsible by commune PC who makes statistics and report to the district Department of Agriculture and Rural Development summaries and reports to the District People’s Committee and Provincial Department of Agriculture and Rural Development. Reporting to the provincial Department is done within last 15 days of the year.

(v) Provincial Department of Agriculture and Rural Development summaries, report to Ministry of Agriculture and Rural Development and Provincial People’s Committee on first 15 days of following year.

6. Contents of Reporting (i) Area for harvesting as compared with objects and harvesting design

record.

(ii) Volume, types of products for each object as compared with the harvesting design record.

(iii) Evaluation of performance of regulations, manuals.

(iv) Violations (if any) and forms of treatment applied.

(v) Other matters (production cost, selling price, processing situation, marketing of products).

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119

Annex 8: Responsibilities of National, Provincial and District Level Agencies in Resettlement Planning Under Decree No. 197/2004/ND-CP

Responsibilities of Ministry of Finance, Ministry of Planning and Investment, Ministry of Construction, Ministry of Natural Resources and Environment According to Decree 197/2004/ND-CP (Art. 46) 1. Responsibilities of the Ministry of Finance:

(i) Checking and guiding the implementation of the compensation, assistance and resettlement policies.

(ii) Chairing and collaborating with relevant Departments to guide and handle complications about land prices, property prices and policies of compensation, assistance in the compensation, assistance resettlement as proposed by the Provincial People's Committee.

2. Responsibilities of the Ministry Planning and Investment:

Guiding and inspecting the planning and implementation of resettlement projects under regulations of the laws on management of investment construction.

3. Responsibilities of the Ministry of Construction:

(i) Guiding and inspecting the identification of the legitimacy of houses and other construction work to calculate compensation. Guiding the setting up of planning for constructing resettlement areas, standards of houses and structures built at resettlement areas.

(ii) Guiding, inspecting the identification of prices of other houses and structures to make compensation, assistance and resettlement within assigned powers.

4. Responsibilities of the Ministry of Natural Resources and Environment:

Inspecting the implementation of specific land use plans and planning for each investment project; identifying land owners who are entitled or not entitled to compensation, assistance to establish the basis for the calculation of compensation and assistance. Granting houses or land-use-right certificates for resettled people.

The People's Committee at Various Levels (Art. 43)

1. The Provincial People's Committee has responsibilities to:

(i) Instruct, organize, make notifications, mobilize all organizations, individuals on compensation, assistance, resettlement and site clearance policies in correct conformity with the land recovery decision of competent State agencies.

(ii) Instruct agencies, departments and the Commune to:

(a) Develop projects for resettlement, for resettlement areas in service of land recovery.

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(b) Devise schemes for compensation, assistance and resettlement in accordance with their power.

(iii) Approve or authorize the District People’s Committee to approve compensation, assistance and resettlement schemes.

(iv) Approve land prices, release a property price table for the calculation of compensation, specify rates of assistance, measures of assistance within their authorized power, resettlement arrangement schemes, schemes for training for job shifting within authorized power.

(v) Instruct relevant agencies to settle complaints, denunciations from citizens on compensation, assistance and resettlement under authorities provided by law.

(vi) Ensure objectivity and fairness when compensation, assistance and resettlement are considered and decided when the State recovers land under authorities provided in this Decree.

(vii) Decide or authorize the District People’s Committee to take coercive measures regarding cases of people who deliberately refuse to implement the State’s land recovery decision under authorities.

(viii) Instruct, examine and deal with violations in cases of compensation, assistance and resettlement.

2. District People’s Committees where there is land recovered have responsibilities to:

(i) Instruct, organize, make notifications, mobilize all organizations and individuals on compensation, assistance, resettlement and site clearance policies in correct conformity with the land recovery decision of competent State agencies.

(ii) Instruct the Compensation, Assistance and Resettlement Board at the same level and organize the implementation of compensation, assistance and resettlement schemes. Implementing the approval of compensation, assistance and resettlement schemes as authorized by the Provincial People's Committee.

(iii) Work in collaboration with departments, organizations and agencies and investment project owners to implement construction investment projects, schemes to set up resettlement areas at localities as authorized by the Provincial People's Committee.

(iv) Deal with complaints, denunciations from citizens concerning with compensation, assistance and resettlement within authorized powers; release decisions on coercion and take coercive measures towards cases within powers; co-ordinate with departments with relevant functions, to implement coercion under decisions of competent agencies.

3. Commune People’s Committees have responsibilities to:

(i) Organize publicity campaigns about the purposes of land recovery, policies of compensation, assistance and resettlement of projects.

(ii) Work in collaboration with the Compensation, Assistance and Resettlement Board to implement the identification of land, property of recovered people.

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121

(iii) Co-ordinate with and create favorable conditions for the payment of compensation money, assistance money and resettlement arrangement to land-recovered people and enable the site clearance.

Responsibilities of Departments, Agencies, Organizations at Provincial Level (Art. 44) 1. The Department of Finance is responsible to:

(i) Chair and collaborate with relevant agencies to submit to the Provincial People’s Committee for approval of land prices and property price table (except for houses and other building structures) to calculate compensation, rates of assistance, measures of assistance and resettlement at localities to submit to the Provincial People’s Committee for decisions.

(ii) Chair the appraisal as regulated in Article 41 of the Decree.

(iii) Examine the payment of compensation money, assistance money and costs for the implementation of compensation, assistance and resettlement at localities.

2. The Department of Planning and Investment is responsible to: Guide and examine

the planning of resettlement projects and the implementation of resettlement projects. 3. The Department of Construction and the Department of Architectural Planning is

responsible to:

(i) Guide the identification of scale, area, legitimacy or illegitimacy of built structures associated with recovered land to serve as a basis for the calculation of compensation for damage and assistance for each subject.

(ii) Identify prices of houses and structures associated to the land to calculate the compensation for damage to submit to the People’s Committee of the same level for approval.

(iii) Chair and co-ordinate with agencies of right functions to identify the location, the scale of resettlement areas to be in conformity with the general development planning of localities to submit to competent State agencies for approval.

4. The Department of Natural Resources and Environment is responsible to:

(i) Guide the identification of land areas, categories of land, types of land and conditions for land eligible for compensation and ineligible for compensation when the State recovers land.

(ii) Guide the identification of scale and area of land to see if it is eligible or ineligible for compensation, the rate of compensation or assistance for each user of recovered land to serve as a basis for the calculation of compensation and assistance for each subject.

(iii) Chair and coordinate with Department of Planning and Investment, Department of Construction to submit to Provincial People's Committee for decisions on the scale of land recovery of each project.

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Annex 9 Checklist of ADB Water Policy Implementation in Relation to the Project Project. No. & Title: TA 4475- VIE Song Bung 4 Hydropower Project Phase I Prepared by: J. Bird Date: 12 April 2005 Sub-sector Project Classification:

Water resources management Watershed management Others (specify) – Hydropower

ADB Policy Actions Compliance Comments

National Policies and Reforms 1. ADB will help develop comprehensive

water policies in the DMCs. Yes Being undertaken under ADB TA

3528-VIE including development of draft National Water Resources Strategy (NWRS)

2. Assistance for undertaking water sector assessments will be provided to ensure that policy formulation and sector reforms are well grounded.

Yes National Water sector Profile prepared and other assessments undertaken under TA 3528-VIE

3. Because project planning and implementation are commonly fragmented among many institutions, ADB will support the optimization of agency functions for planning and implementation. It will also focus on the development of effective cross-sectoral coordination mechanisms, such as a neutral sector apex body that can oversee the policy formulation and sector reform process.

Yes National Water Resources Council established and functioning

4. Support will be provided for the review and revision of water legislation particularly in the areas of water rights and allocation among competing uses, water quality standards, groundwater use, demand management, resource conservation, private participation, and institutional responsibilities for water sector functions at national, regional or basin, local, and community levels.

Yes Identified as an activity under the NWRS and will be reform of legislation will be initiated under Water Sector Support Program

Water Resources Management 5. ADB will help the DMCs introduce IWRM

and undertake comprehensive water resource assessments in river basins as a basis for future water investment projects.

Partial Sector specific basin studies have been carried out by MARD / IWRP for water resources and by National Hydropower Plan for hydropower. The need for, and focus of, more detailed assessment will be determined by the proposed Review Committee.

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Water Resources Management (cont’d) 6. To implement IWRM, ADB will support the

establishment of river basin organizations (both formal and informal) to facilitate stakeholder consultation and participation, and to help improve planning, information gathering, monitoring, and advisory services to local and national authorities.

Yes Initial steps are proposed to introduce cross-sectoral dialogue on IWRM through a Water Resources Review Committee for the Vu Gia basin. This could provide the foundation for an RBO for the Vi Gia-Thu Bon basin if considered necessary by the various stakeholder agencies and once institutional issues at national level relating to ministerial mandate for establishing RBOs has been resolved.

7. ADB will encourage the DMCs to adopt participatory and negotiated approaches for water allocation.

Yes The hydropower project will increase availability of dry season flows for irrigation and other uses downstream particularly of value in the coastal plain. However, more locally in the Song Bung sub-basin impacts are likely to be negative due to daily fluctuations in flow and impacts on fish habitats. One of the roles of the Review Committee will be to assess procedures for basin planning and water allocation.

8. ADB will pursue the protection and rehabilitation of degraded forestlands. To rehabilitate watersheds, ADB encourages the involvement of local communities and NGOs.

Yes Opportunities to reduce current threats to watershed from mining, road construction and shifting agricultures are being explored as well as forest management and protection of biodiversity through extension of biodiversity corridors. WWF International is assisting and the project may support components of the Quang Nam Conservation Strategy.

9. ADB will promote wetland conservation and improvement in a river basin context.

Partial The project is not expected to impact on sensitive wetlands. The extent of any wetland areas and need for special management provisions is included as an item for consideration by the Review Committee.

Conserving Water 10. ADB will consistently advise governments

of the need to adopt cost recovery principles in their water policies and strategies.

Yes Included in the draft NWRS under TA 3528-VIE

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Fostering Participation 11. ADB will promote participation in the

management of water resources at all levels and collaborate in fashioning partnerships between governments, private agencies, NGOs, and communities.

Yes Included in the draft NWRS under TA 3528-VIE. At project level, the consultation strategy for those affected by the project including those upstream and downstream will examine issues of access to and management of natural resources including water resources.

12. Water projects supported by ADB will incorporate carefully designed components that promote the participation of civil society in identifying needs and issues, designing solutions, and establishing mechanisms for monitoring and dispute resolution.

Yes The project’s participation strategy includes the involvement of civil society and arrangements for community management of natural resources.

12a. Projects with large dam components ‘will need to be justified in the public interest, and stakeholders must be provided with the opportunity to comment on the justification with their views considered.’92

Partial Consultations undertaken by the Government and EVN focused mainly on mitigation measures and have taken into account the views of affected people in their design. Consultations under the National Hydropower Plan Study at provincial and village level have dealt with wider issues of hydropower development – its benefits and impacts. More extensive consultations are proposed for PPTA Phase II with mechanisms included to ensure stakeholder views are incorporated into design of mitigation measures.

13. The key elements in a gender approach to planning, implementing, and evaluating of water sector activities are (i) including a gender analysis at the design stage, (ii) incorporating explicit gender equity provisions in the objectives and scope of the activity, and (iii) disaggregating data in monitoring and management information systems along gender lines. These elements will be incorporated in ADB’s water sector operations.

Yes A Gender Plan will be prepared under Phase II of the PPTA for implementation under the Project.

92 This section of the checklist was added by the consultants to reflect recent changes in para 32 of ADB’s

Water Policy, see http://www.adb.org/Water/Policy/approved-revision.asp.

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Improving Governance 14. ADB will promote the development of

sustainable plans for capacity building; these will include the establishment of indigenous institutional arrangements for skills development at basic and advanced levels. The plans will incorporate processes that allow the sharing of sub-regional or regional experiences.

Yes At national level this is part of ADB TA 3528. At basin level, the need for capacity building will be assessed by the review Committee and proposed Pilot Demonstration Activity. Further funding may be necessary to support the recommendations of such a program and will be considered by the PDA. Recommendations for capacity building for environmental management and implementation of social safeguards are included in PPPTA Phase I report.

Questionnaire on Project Framework 15. Has the project framework reflected the

water policy in the goal, objectives sections?

NA Reference to Water Policy will be included in TA paper for PPTA Phase II

16. Has the project framework included measurable indicators in the project objectives/ outputs/ activities sections?

NA To be considered in the project design after PPTA Phase II.

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Annex 10: Initiating Integrated Water Resources Planning in the Vu Gia Basin – Outline Proposal for an ADB Pilot Demonstration Activity (PDA)

1. The following proposal reflects initial discussions on the concept of establishing a Water Resources Review Committee for the Vu Gia Basin in Vietnam with the aim of promoting the principles of Integrated Water Resources Management. Positive feedback was received from both the People’s Committee of Quang Nam Province and ADB. It is proposed that MKID / VRM submit this proposal for a Pilot Demonstration Activity (PDA)93 for consideration of ADB’s Water Sector Cooperation Fund.

I. Background and Rational 2. The water resources context of the basin includes the following issues:

(i) Major expansion plans for approximately 1,200 MW hydropower in the VG-TB; basin including planned storage of 1,800 mcm – relatively undeveloped status of basin now;

(ii) Existing highly sectoral approach to water resources planning, hydropower, irrigation, environment, etc;

(iii) Interaction between operation of hydropower projects and downstream uses – fluctuating water levels, impacts on fish resources and agriculture, potential for flood management, salinity management and increased dry season irrigation in coastal areas;

(iv) Concerns over deteriorating water quality;

(v) High incidence of poverty in upper basin and majority of population are ethnic minorities;

(vi) Institutional vacuum for river basin management pending new Decree expected by end 2005;

(vii) Concerns raised over centralized and unsustainable approach to RBOs in Vietnam to date;

(viii) Scope for benefits to all sectors through an integrated system approach – optimized electricity generation from cascade, reduced flood peaks/duration, reduced salinity, irrigation, more sustainable land use practices in watershed; and

(ix) Potential to introduce payments for environmental services under the new Forestry Law.

3. A more integrated approach to basin management is consistent with ADB support to institutional reforms in the water sector and investment portfolio in energy and water sectors. With regard to the boundaries to be considered for this activity, it is proposed that, as an initial step, the focus be on the Vu Gia river basin. Although there is interconnectivity between the Vu Gia and Thu Bon basins on the coastal plain, the Vu Gia basin can be considered as relatively independent, with the majority of the flow after the confluence directed eastwards to Da Nang. The complex interconnected river system in the coastal plain is more a feature of the Thu Bob river system. Seven of the eight proposed hydropower projects are also located in the Vu Gia basin and there influence will be mostly felt within that

93 For further information on PDAs, see http://www.adb.org/water/pda/default.asp

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basin. As capacity is built for interaction and needs emerge, the boundary can be extended to include the Thu Bon basin.

II. Objectives 4. Immediate objectives of the PDA are to (i) introduce relevant government agencies and community representatives in the basin to the principles of IWRM and the importance of coordination among sectors including water allocation, land use and social and environmental considerations; (ii) provide a forum to consider alternative operation modalities of the proposed hydropower projects to optimize benefits across water sub-sectors; and (iii) develop recommendations and follow-up for operationalizing IWRM within the basin. In the medium term, the experience gained from the PDA dialogue will provide valuable lessons to determine the composition and approach of a new RBO for VG-TB basin.

III. Scope of Work / Description of Activities 5. The PDA will involve the following activities:

(i) Establishment of a Vu Gia Water Resources Review Committee, chaired by a Vice Chair of the Quang Nam People’s Committee (responsible for DoNRE and DARD) and comprising key stakeholders with an interest in the consequences of hydropower development in the basin;94

(ii) Awareness raising seminars / workshops on integrated water resources management, direction of national reform process in the water sector and role of water in addressing the country’s Comprehensive Poverty Reduction and Growth Strategy (CPRGS);

(iii) Dialogue across sectoral interests on optimizing of water resources allocation in the basin taking into account changes in flow conditions as a result of hydropower development and recommendations for more integrated and participatory processes for water allocation. Sectors include water supply, irrigated and upland agriculture, flood management, wetlands;

(iv) Review and make recommendations on the operational rules of proposed hydropower projects to ensure benefits to other sectors and safety of downstream inhabitants;95

(v) Devise a process for obtaining inputs from communes not directly represented on the Committee (see item 7) and review of consultations undertaken as part of the PPTA Phase II Participation Strategy;

(vi) Assess critical IWRM issues in the basin and recommendations for addressing them – including water use and related measures to reduce poverty, watershed management (land and forest use), social aspects and ecological needs;

(vii) Facilitate development of measures under PPTA Phase II to minimize impacts from mining and road construction activities in the upper basin;

94 Preliminary discussions were held with PPC Vice Chairman, Mr. Le Minh Anh in March 2005 at which he

agreed in principle to chair the Committee and directed that the Director of DoNRE, Mr. Duong Chi Cong should be the main contact person.

95 Input to these discussions will be provided from results of computer modeling of the river basin to be undertaken in PPTA Phase II.

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(viii) Dissemination of output among water users in the basin.

6. The Review Committee would also consider the need and possible structure of a future RBO or alternative cross-sectoral body for the Vu Gia – Thu Bon basin taking into account institutional developments at a national level. Based on the preliminary recommendations prepared under the PDA, proposals can be developed for longer term technical assistance for building capacity and local ownership of any new institutional model.

IV. Implementation Schedule Arrangements, Institutional Management Arrangements and Proponent

7. Awareness raising among key stakeholders could commence in June 2005 leading to formal establishment of the Review Committee in July 2005. The first meeting of the Review Committee is proposed in August/September 2005 so that its initial deliberations can be reflected in the inception phase of the Phase II consultants. The timeframe for discussing alternative operation scenarios for the SB4 and other hydropower projects is September 2005 to April 2006 prior to finalization of the Phase II consultants report. Recommendations for follow-on support after the PDA need to be prepared in time to be considered in the planning processes of various bilateral agencies. 8. The PDA will be implemented and facilitated by a part-time individual international Consultant with experience of similar institutional processes in the water sector in Vietnam and ability to interact with national and provincial agencies at a senior level. The Consultant will arrange for support from local consultants as facilitators as necessary and for local costs related to workshops and consultations. 9. In relation to hydropower development, the Review Committee would be an advisory body to EVN, MOI and the Government of Vietnam. Mechanisms for interaction between various agencies and the Committee will be worked out during the PDA. Its recommendations could be conveyed through the office of the Vice Chairman of Quang Nam PPC as Chair of the Committee. PECC3 and Phase II consultants will provide necessary technical input to the discussions.

V. Expected Results 10. Output from the PDA will include but not necessarily be limited to:

(i) A functioning cross-sectoral committee for considering optimizing water resources management;

(ii) A range of options for hydropower operation in the basin;

(iii) Raised awareness of the benefits of IWRM and a catalyst for establishing a formal RBO if considered necessary;

(iv) Recommendations on addressing critical IWRM issues in the Vu Gia basin; and

(v) Provincial linkage to institutional reforms being implemented at national level in the water resources sector including those supported by ADB, and the Governments of the Netherlands, Denmark, and USAID.

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VI. Measurable Performance Indicators 11. In the short term the output of the project will be determined on the level of participation and commitment of key stakeholders to the working of the Review Committee. Towards the end of the process, the extent to which recommendations for improving operation of water resources infrastructure in the basin have been developed with relevant stakeholders through a meaningful dialogue will provide a benchmark against which to measure its success and the readiness of institutions to move from a sectoral to a more integrated approach. Beyond the life of the PDA, the incorporation or otherwise of the institutional design and lessons learned for establishment of a formal RBO or alternative initiative for promoting IWRM will mark the contribution of this pilot activity.

VII. Stakeholder Participation 12. The composition of the Review Committee is given in Section 4.4.3 of the main text. 13. Stakeholder representation needs to reflect both the macro level concerns, for example of storing water from one season to another, the influence of land use and local-level concerns related to deterioration of water quality and impacts on fish stocks. Ensuring effective participation of water users in province-scale committees is not a straightforward task and will require a tiered approach in which commune and district representatives on the Review Committee are able to hold pre- and post-meeting consultations with representatives from other communes. The identification of commune representatives and structuring of feedback meetings will be designed on the basis of a stakeholder analysis undertaken for the basin using the rights, risks and responsibilities approach summarized in Annex 4. Using this approach, particular emphasis will be give to ensuring representation of vulnerable groups including ethnic minorities, women and the elderly.

VIII. Scope for Replication / Use in other DMCs 14. Given the concerns raised about existing institutional models for RBOs in Vietnam, there is considerable potential for developing a new institutional structure that is both more responsive to local issues and is financially sustainable. By ensuring active participation of the major players, focusing the initiative in the PDA on identified problem areas and looking for win-win solutions, it is expected that a number of lessons will be learnt for consideration in the other 15 major river basins in Vietnam, particularly those with smaller numbers of provinces involved, or sub-units of the larger basins.

9. Cost Estimate 15. Tentative costs for the PDA are currently estimated at $50,000 comprising:

(i) Initial awareness raising seminar / workshop $ 5,000 (ii) Meetings of the Review Committee (4 no.) $ 10,000 (iii) Facilitator, international consultant (part time) $ 20,000 (iv) Local facilitator $ 8,000 (v) Dissemination $ 5,000 (vi) Travel for consultant $ 2,000

16. A more detailed division of costs and breakdown of line items will be prepared by the Consultant during the initial month of the assignment.

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Annex 11: Translation of Draft Letter from Song Thanh Management Board to HPPMB 3 and Information on Song Thanh Nature Reserve

SONG THANH NATURE RESERVE Comments on the impacts by Song Bung 4 HPP 1. Geographical co-ordinates From – 15o12' to 15o41' Northern latitude From – 107o20' to 107o46' Eastern longitude North – to 14D National Road East – limited by two watersheds of Thanh River and Cai River South – to Kon Tum Province West – to Laos border 2. Total area of core zone: 93,249 ha, includes 99 sub-zones. Forest land – 88,879 ha, accounts for 95.3% Land with big trees scattering and grass – 3,175 ha, accounts for 3.4%

Agricultural land – 1,195 ha, accounts for 1.28% 3. Functional areas of the Natural Reserve

(i) Highly protected areas I, II: Total area of 76,816 ha, includes 81 sub-zones located in the following communes:

(a) LaDee Commune includes 15 sub-zones: 347, 349, 351, 352 and from 354 to 369;

(b) LaEe Commune includes 3 sub-zones: 259, 260, 261;

(c) DacPring Commune includes 30 sub-zones: 376, 377, 378 and from 382 to 408;

(d) DacPre Commune includes 9 sub-zones: from 367 to 375;

(e) TaBhing Commune includes 4 sub-zones: 308, 309, 310, 311;

(f) Kham Duc Town includes 5 sub-zones: 622, 623, 624, 630, 631;

(g) Phuoc Nang Commune includes 4 sub-zones: 677, 678, 679, 682;

(h) Phuoc Duc Commune includes 1 sub-zone: 673;

(i) Phuoc My Commune includes 6 sub-zones: 700, 704, 705, 708, 709, 710; and

(j) Phuoc Cong Commune includes 4 sub-zones: 713, 714, 715, 716.

(ii) Ecologically recovered areas I, II, III: Total area of 16,433 ha, includes 18

sub-zones located in the following communes:

(a) LaDee Commune includes 2 sub-zones: 346, 353;

(b) DacPring Commune includes 2 sub-zones: 279, 280;

(c) TaBhing Commune includes 9 sub-zones: 296, 297, 299, 300, 301, 304, 205, 306, 307;

(d) Phuoc My Commune includes 3 sub-zones: 701, 706, 707;

(e) Cha Val Commune includes 1 sub-zone: 342; and

(f) Ca Dy Commune includes 1 sub-zone: 322.

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4. Total area of the buffer zones: The total area is 108,398 ha located in 12 communes and 1 town of Nam Giang district and Phuoc Son district. A forestation project for the period of 2001-2010 has been implemented on 5 million ha of new forest, this is a separate project owned by Song Thanh Natural Reserve Management Board.

Project area: 38,976 ha, includes the following items:

(a) Forest protection: 10,443 ha (not started yet);

(b) Naturally recovered: 16,540 ha (not started yet);

(c) Naturally recovered with additional forestation: 2,000 ha (274.6 ha completed); and

(d) New forestation: 2,496 ha (111 ha completed).

On the basis of the maps of Song Bung 4 Reservoir and Song Thanh Natural Reserve: 1. For Song Thanh Natural Reserve: At NWL of 230m in the reservoir, 78 ha of ecologically recovered areas will be flooded, which are identified as sub-zones 300, 301 located along Ta Vinh Valley. 2. For the buffer zones projected by Program No. 661: At NWL of 230m in the reservoir, 144.5 ha will be flooded. In which:

(a) Agricultural land: 31 ha;

(b) Naturally recovered forest: 19.5 ha of sub-zone 294 and 68 ha of sub-zone 337 (planned, not started yet); and

(c) Naturally recovered with additional forestation: 26 ha of sub-zone 298 (planned, not started yet).

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Appendix 12: Information on Song Thanh Nature Reserve96

Song Thanh Proposed Nature Reserve

Alternative Site Name(s) Investment Plan Prepared Sjong Thanh-Dak Pring Yes

Province(s) VCF Eligibility Criteria Met Quang Nam A, B, C

Area Social Screening Criteria Met 93,249 ha A, B, C

Coordinates Conservation Needs Assessment Prepared 15�13' - 15�41'N, 107�21' - 107�50'E Yes – 2003

Agro-Ecological Zone Operational Management Plan Prepared South Central Coast Yes – 2003

Decreed by Government Tracking Tool Completed Yes Yes – 2003 (score: 25)

Management Board Established Map available Yes Yes Management History 1. Song Thanh is not listed on any government decision regarding the Special-use Forests system (MARD 1997). The original proposal to establish a nature reserve at the site was made following a biological and socio-economic survey of western Quang Nam province by the WWF Indochina Programme, the Forest Inventory and Planning Institute (FIPI), the FPD of MARD, and Quang Nam Provincial FPD (Wikramanayake et al. 1997). 2. Based on this proposal, an investment plan for Song Thanh was prepared by FIPI in 1999. This investment plan proposed establishing a nature reserve in Nam Giang and Phuoc Son districts. The total area of the proposed nature reserve was given as 93,249 ha, comprising a strict protection area of 75,737 ha, a forest rehabilitation area of 17,512 ha, and an administration and services area of 50 ha. In addition, a buffer zone of 108,398 ha was defined (Anon. 1999). 3. A management board for Song Thanh proposed nature reserve was established by Quang Nam Provincial FPD in May 1999, and, in October 1999, the investment plan was approved by MARD (Thai Truyen, Vice-director of Quang Nam Provincial FPD verbally 2003). Based on a staffing ratio of one member of staff for every 1,000 ha, the management board should have 93 members of staff. However, as of February 2003, the management board only had 23 members of staff plus one driver (Thai Truyen, Vice-director of Quang Nam Provincial FPD verbally 2003).

96 Source: Birdlife International et al, 2003. Sourcebook on Protected Areas. Second Edition.

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4. Song Thanh is included on a list of Special-use Forests to be established by the year 2010, prepared by the FPD of MARD, as a 93,249 ha nature reserve (FPD 2003); this list has not yet been approved by the government. Topography and Hydrology 5. The topography of Song Thanh proposed nature reserve is mountainous, with numerous peaks over 1,000 m. The highest points are in the south of the proposed nature reserve, which rises in elevation towards the Kon Tum plateau. The west of the proposed nature reserve is drained by the Dak Pring and Tam Paete streams, tributaries of the Boung River, which flows from west to east to the north of the proposed nature reserve. The south and east of the proposed nature reserve is drained by the Giang River, a tributary of the Cai River, which flows in a northerly direction to the east of the proposed nature reserve. The Boung and Cai Rivers come together to form the Vu Gia River, one of the major rivers in Quang Nam province. Biodiversity Values 6. Forest land covers 88,879 ha or 95% of the proposed nature reserve, and the vegetation is dominated by evergreen forest. The investment plan lists a total of 831 vascular plant species as occurring at Song Thanh, of which 23 are endemic to Vietnam (Anon. 1999). One species recorded, Parashorea buchmanii, was a new record for Vietnam, and three species in the genera Dinochloa, Melocalamus and Cephalostachyum may be new to science (Le Nho Nam 2001). 7. The investment plan lists 53 species of mammal, 183 species of bird, 44 species of reptile and 21 species of amphibian as occurring at Song Thanh proposed nature reserve (Anon. 1999). However, it seems that these figures may include some species expected to occur at the site based upon their known distributions, but not yet recorded in the field. Therefore, these data must be treated with caution. Mammal taxa of particular conservation concern that are reported to occur at Song Thanh include four Indochinese endemics: Red-shanked Douc Pygathrix nemaeus, Grey-shanked Douc P. cinerea, Large-antlered Muntjac Muntiacus vuquangensis and Annamite Muntjac M. truongsonensis (Anon. 1999). The latter species was only described in 1998, from specimens collected in what is now Tay Giang district, 40 km to the north of Song Thanh proposed nature reserve (Pham Mong Giao et al. 1998). In addition, the globally endangered Tiger Panthera tigris has been recorded at the proposed nature reserve on the basis of tracks (Tran Van Thu, Vice-director of Song Thanh proposed nature reserve verbally 2003). 8. In the extreme south of the proposed nature reserve, close to the border with Kon Tum province, there are a number of high mountains, supporting a significant area of upper montane evergreen forest. Contiguous areas of similar habitat in Kon Tum province, within Ngoc Linh (Kon Tum) Nature Reserve, have been shown to be important for a number of globally threatened and restricted-range bird species, including two recently described species: Golden-winged Laughingthrush Garrulax ngoclinhensis (Eames et al. 1999a) and Black-crowned Barwing Actinodura sodangorum (Eames et al. 1999b). Because of its presumed importance for the conservation of these species, the southern part of Song Thanh proposed nature reserve is included within Lo Xo Important Bird Area (Tordoff 2002). 9. Song Thanh proposed nature reserve is contiguous with Ngoc Linh (Kon Tum) Nature Reserve to the south, and the Lao border to the west. It is, therefore, part of one of the largest areas of contiguous conservation coverage in Vietnam (Le Nho Nam 2001). From

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a regional conservation perspective, Song Thanh is an important link in a chain of natural habitat in the central Annamite mountains. Conservation Issues 10. Only 41 households live within the proposed nature reserve, and a further 4,598 households inhabit the buffer zone (Thai Truyen, Vice-director of Quang Nam Provincial FPD verbally 2003). Although the population density in the buffer zone of Song Thanh proposed nature reserve is only 12 people per km2, it is one of the poorest areas in Quang Nam province. Local people, who are mainly members of the Ka Tu, Gie-trieng and Mnong ethnic minorities, rely heavily on forest land and resources for their livelihoods. Therefore, shifting cultivation, fuelwood collection, illegal logging and wildlife trapping are major threats to biodiversity (Le Nho Nam 2001). 11. Local communities are not, however, the major source of threat to biodiversity at Song Thanh proposed nature reserve: hunting, logging and gold mining by outsiders, and infrastructure development all pose greater threats (B. Long in litt. 2003). The Ho Chi Minh National Highway, which is currently being constructed through western Quang Nam province, bisects the south-east of the nature reserve, while a minor road linking Ben Giang town in Quang Nam province with Dakchung district in Laos, which bisects the north-west of the nature reserve, is currently being upgraded to a major highway. As well as the direct impacts of these road developments in terms of habitat loss, they may also facilitate future settlement of in-migrants along their routes, increasing population pressure in the buffer zone, and, hence, pressure on natural resources within the proposed nature reserve, or, even, isolating the proposed nature reserve from contiguous forest areas to the north and south. 12. Raising awareness of the importance of biodiversity conservation is a priority, not only for the local people but also for the forest protection staff, who have little knowledge or experience of conservation, having mostly graduated in silviculture. Additional obstacles to the effective functioning of the forest protection staff are poor living and working conditions, under-developed infrastructure, and lack of communications, office and technical equipment (Le Nho Nam 2001). Other Documented Values 13. Song Thanh proposed nature reserve plays an important role in catchment protection for the Vu Gia River, one of the major rivers in Quang Nam province, which originates in the area. In addition, there exists the potential to develop Song Thanh as a site for scientific study (Le Nho Nam 2001). Related Projects 14. Since 1999, the WWF Vietnam Programme has supported a number of Tiger conservation activities at Song Thanh, including awareness raising, Tiger surveys and conservation training for nature reserve staff. In addition, the WWF Emergency Fund has supported basic equipment and infrastructure for the proposed nature reserve, including the construction of two community centers in the buffer zone of the proposed nature reserve, and numerous small, targeted activities, including community patrol groups. 15. Since 2002, the WWF Vietnam Programme, in collaboration with Quang Nam Provincial FPD, has been implementing an integrated program of activities in Quang Nam

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province, as part of the Management of Strategic Areas for Integrated Conservation (MOSAIC) Project. A number of project activities have been implemented at Song Thanh proposed nature reserve, including participatory rural appraisals in buffer zone villages, and a participatory three-dimensional protected area mapping exercise with local stakeholders to look at potential boundary adjustments. This approach is being further strengthened by a MacArthur Foundation grant focusing on protected area development at Song Thanh. To date, a conservation needs assessment has been conducted, an operational management plan has been prepared, and preparation of a full management plan has begun. In addition, training is being provided in conservation biology, law enforcement and protected areas management, and the management board has recently undergone a restructuring process to maximize individual staff outputs. Furthermore, a series of activities are being implemented in the buffer zone, including conservation education, land allocation to local communities and co-management agreements (B. Long in litt. 2003). Conservation Needs Assessment 16. A conservation needs assessment was conducted in 2003 by the nature reserve management board, with technical assistance from the WWF/Quang Nam Provincial FPD MOSAIC Project. Operational Management Plan 17. An operational management plan was prepared in 2003 by the nature reserve management board, with technical assistance from the WWF/Quang Nam Provincial FPD MOSAIC Project. Eligibility Against VCF Criteria 18. The site is eligible for VCF support because it meets criteria A, B and C.

Criterion Eligibility AI CA1 - Central Annamites AII VN046 Lo Xo BI Proposed Special-use Forest BII Nature Reserve BIII Under provincial management CI Management board established CII

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Social Screening Requirements 19. A social screening report has not been prepared for the site.

Criterion Eligibility A The People’s Committee chairmen of all communes located in the

buffer zone and core area of the national park were consulted in the preparation of the conservation needs assessment.

B People living in the buffer zone and core area, and all sections of these communities, were consulted during the preparation of the conservation needs assessment.

C Draft results of the conservation needs assessment were fed back to all local communities and their comments were taken into account in the final conservation needs assessment.

D Literature Sources Anon. (1997) Assessment on biodiversity and possibility for the establishment of nature reserves in the west of Quang Nam province. Hanoi: WWF Indochina Programme, the Forest Inventory and Planning Institute and the Forest Protection Department. Anon. (1997) [Assessment on biodiversity and possibility for the establishment of nature reserves in the west of Quang Nam province]. Hanoi: WWF Indochina Programme, the Forest Inventory and Planning Institute and the Forest Protection Department. In Vietnamese. Anon. (1999) [Investment plan for Song Thanh Nature Reserve]. Hanoi: Forest Inventory and Planning Institute. In Vietnamese. Dang Huy Huynh (1998) [Some data from a Truong Son Muntjac recently collected from south-western Quang Nam province]. Lam Nghiep [Vietnam Forest Review] November/December 1998: 56-58. In Vietnamese. Eames, J. C., Le Trong Trai and Nguyen Cu (1999a) A new species of laughingthrush (Passeriformes: Garrulacinae) from the Western Highlands of Vietnam. Bull. Brit. Orn. Club 119(1): 4-15. Eames, J. C., Le Trong Trai, Nguyen Cu and Roland Eve (1999b) New species of barwing Actinodura (Passeriformes: Sylviidae: Timaliinae) from the Western Highlands of Vietnam. Ibis 141: 1-10. FFI Asian Elephant Conservation Programme (2000) Vietnam's elephant crisis: conservationists illuminate Quang Nam elephant situation; conflicts are testing peoples' tolerance. Press release by Fauna and Flora International-Indochina Programme, 11 April 2000. FFI Asian Elephant Conservation Programme (2000) [Vietnam's elephant crisis: conservationists illuminate Quang Nam elephant situation; conflicts are testing peoples' tolerance]. Press release by Fauna and Flora International-Indochina Programme, 11 April 2000. In Vietnamese.

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Le Nho Nam (2001) Song Thanh Nature Reserve: potentials and challenges. Quang Nam: Song Thanh Nature Reserve Management Board. In English and Vietnamese. Nguyen Quoc Dung (1997) [A report on the socio-economic situation in western Quang Nam province]. Hanoi: WWF Indochina Programme, the Forest Inventory and Planning Institute and the Forest Protection Department. In Vietnamese. Pham Mong Giao, Do Tuoc, Vu Van Dung, Wikramanayake, E., Amato, G., Arctander, P. and MacKinnon, J. R. (1998) Description of Muntiacus truongsonensis, a new species of muntjac (Artiodactyla: Muntiacidae) from central Vietnam, and implications for conservation. Animal Conservation (1998) 1: 61-68. Song Thanh Nature Reserve Management Board (2002) Song Thanh Nature Reserve. Information booklet produced by Song Thanh Nature Reserve Management Board. In English and Vietnamese. Tordoff, A. W. ed. (2002) Directory of important bird areas in Vietnam: key sites for conservation. Hanoi: BirdLife International in Indochina and the Institute of Ecology and Biological Resources. Vietnam News (2002) Song Thanh to be a national park. Vietnam News 20 July 2002. Vu Van Dung, Nguyen Quoc Dung, Bui Dac Tuyen and Hoang Trong Tri (1997) [A report on the fauna of western Quang Nam province]. Hanoi: WWF Indochina Programme, the Forest Inventory and Planning Institute and the Forest Protection Department. In Vietnamese. Vu Van Dung, Nguyen Quoc Dung, Bui Dac Tuyen and Hoang Trong Tri (1997) [A report on the vegetation of western Quang Nam province]. Hanoi: WWF Indochina Programme, the Forest Inventory and Planning Institute and the Forest Protection Department. In Vietnamese. Wikramanayake, E., Vu Van Dung and Pham Mong Giao (1997) A biological and socio-economic survey of west Quang Nam province with recommendations for a nature reserve. Hanoi: WWF Indochina Programme, the Forest Inventory and Planning Institute and the Forest Protection Department. Wikramanayake, E., Vu Van Dung and Pham Mong Giao (1997) [A biological and socio-economic survey of west Quang Nam province with recommendations for a nature reserve]. Hanoi: WWF Indochina Programme, the Forest Inventory and Planning Institute and the Forest Protection Department. In Vietnamese

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Annex 13: Priority Projects Identified in the Quang Nam Conservation Strategy Project 1. Forest classification, mapping, demarcation and gazettement Aim To clearly identify the legal status of each hectare of forest to permit decisions on Special-

Use Forest gazettement, State Forest enterprise reform and land allocation to be made and implemented

Objectives 1. To obtain provincial consensus on classification criteria for each forest type 2. To map the different forest types based on GIS analysis 3. To demarcate each forest type through commune level map distribution and discussion

Rational Forest land use planning and legal gazettement of allocation contracts is currently restricted by the lack of clear maps showing the distribution of each forest type. This is slowing socio-economic development and preventing the establishment of locally applicable natural resource management. a. Meetings and workshops on classification criteria Responsible department: DARD Partner departments: FPD, DONRE, PPC Outcomes: Clear and widely understood and accepted classification

criteria for the three forest types b. Data collection for classification criteria from provincial datasets and field

surveys within each FMU Responsible department: DARD Partner departments: FPD, DONRE Outcomes: Transparent classification process due to standard data

collection methods c. Identification of all proposed Special-Use Forest and reformed State Forest

Enterprise boundaries Responsible department: FPD Partner departments: DARD, DONRE Outcomes: Provincial level consensus on the number and location of

Special-Use Forests and SFEs d. GIS based classification analysis to identify the distribution of the three forest

types on the FMU and sub-FMU levels Responsible department: DARD Partner departments: FPD, DONRE Outcomes: Provincial wide consensus on the distribution of the three

forest types e. Production of commune level maps on the distribution of the three forest types Responsible department: DARD Partner departments: FPD, DONRE Outcomes: Commune and district authorities fully aware of the

distribution of each forest type f. Commune level consultation and field visits to provide awareness on the

distribution of and management restrictions for each forest type Responsible department: DARD Partner departments: FPD, DONRE

Activities

Outcomes: Community level awareness on the distribution of and management requirement of each of the three forest types

Actions addressed 2.1.1, 2.1.4, 2.1.5, 2.3.2 Timeframe 2005-2006 Budget US$ 200,000

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Project 2. Sustainable community forest management Aim To increase development options and sustainable forest management practices

for forest edge communities through legal ownership, management and protection facilitated by community consensus and capacity building

Objectives 1. To legalize forest edge community access to and management and protection of local natural resources

2. To establish locally applicable forest management systems in each community including protection and monitoring

3. To ensure the capacity exists at all levels to permit sustainable community forest management

Communities are the primary forest manager in the majority of forests in Quang Nam and whilst they view natural resources as an important part of their livelihood and development they current have little rights over such resources leading to local over harvest and exploitation by outside people and companies hampering socio-economic development at all levels.

a. Land allocation Responsible department: DONRE Partner departments: FPD, DARD Outcomes: Increased development opportunities and decreased over

exploitation of natural resources through community legal rights over harvest, management and protection of natural resources

b. Community-based natural resource management including the design of community agreements and monitoring mechanisms

Responsible department: FPD Partner departments: DONRE, DARD Outcomes: Community natural capital is stabilized or increased due to

commune level sustainable harvest mechanisms agreed to by all community members and protected and monitored by community groups

c. Establishment of ‘Village Protection Teams’ Responsible department: FPD Partner departments: DONRE, DARD Outcomes: Community resources protected within ‘closed access’ forest

areas through a legal, community protection institution d. Capacity building Responsible department: All Partner departments: FPD, DONRE, DARD

Activities

Outcomes: Communities and relevant departmental agents are fully competent and appropriately organized and deployed to allow sustainable natural resource management throughout Quang Nam

Actions addressed 2.1.2, 2.1.3, 2.2.1, 2.2.2, 2.2.3, 2.2.4, 2.2.6, 2.2.7 Timeframe Throughout Budget US$ 1,040,000

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Project 3. Wildlife law enforcement strengthening Aim Unsustainable exploitation and illegal activities related to forest and freshwater

resources are reduced to sustainable levels enabling protection, maintenance and restoration of biodiversity, economic, social and cultural values throughout Quang Nam

Objectives 1. To re-organize and intensively train FPD to enable effective law enforcement 2. To increase enforcement effort to significantly reduce wildlife crime 3. To enhance cooperation between all enforcement agencies to create a

coordinated response to wildlife crime Rational Illegal hunting and logging is rapidly destroying the natural resource base of

Quang Nam leading to a loss of natural capital for forest edge communities and the imminent extinction of many important elements of biodiversity from Quang Nam.

a. Create an enabling environment for effective wildlife law enforcement Responsible department: PPC Partner departments: WLESG departments Outcomes: All provincial enforcement agencies work together through an

agreed action plan, monitored by a provincial task force with the aid of a multi-departmental violation database

b. Enforcement operations Responsible department: FPD Partner departments: WLESG departments Outcomes: Wildlife crime violations are significantly reduced through

increased effort and efficiency in field, trade, retail and transport enforcement operations

c. Capacity building Responsible department: FPD Partner departments: WLESG departments Outcomes: Enforcement operation efficiency is significantly increased

through a trained, equipped and appropriately deployed ranger force in collaboration with closely cooperating, trained agencies

d. Provincial legislation strengthening Responsible department: PPC Partner departments: WLESG departments

Activities

Outcomes: Provincial regulations greatly assist in the prevention and removal of wildlife crime including prosecution levels appropriate to provincial priorities and a fining system that enables operational costs to be recovered

Actions addressed 4.1.1, 4.1.2, 4.1.4, 4.1.6, 4.2.1, 4.2.2, 4.2.3, 4.2.4, 4.2.5, 4.2.6, 4.3.1, 4.3.2, 4.3.3, 4.3.4

Timeframe Throughout Budget US$ 491,000

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Project 4. Protected area development Aim To ensure representative areas of the four terrestrial and one marine

biogeographic regions are legally protected and under effective, locally applicable management

Objectives 1. To secure legal protection of key habitat areas in each of the five biogeographic regions of Quang Nam province

2. To ensure biodiversity and natural resources are effectively conserved in core habitat areas permitting provincial level ecosystem recovery and restoration over time

3. To harbor community consensus on protected area objectives and location Rational Protected areas are the cornerstone of conservation efforts to preserve

representative samples of intact natural systems. In order to ensure the long-term survival and restoration of Quang Nam’s environment, biodiversity and natural resources such areas need to be established in each of the biogeographic regions of the province.

a. Gazettement of Special-Use Forests in biogeographic region Responsible department: FPD Partner departments: DI, PPC, DPC, CPC Outcomes: Legal protection of core areas of the four terrestrial and one

marine biogeographic regions of Quang Nam b. Protected area management planning Responsible department: Management boards (FPD) Partner departments: DARD, DONRE, DPC, CPC, DEM Outcomes: Prioritized management actions based on clearly identified

threats allow focused use of resources to effectively mitigate threats and conflicts

c. Management board capacity building Responsible department: FPD Partner departments: DARD, DONRE, DPC, CPC Outcomes: Management boards are able to effectively mitigate threats

based on adaptive management plans d. Boundary demarcation and reserve zoning Responsible department: Management boards (FPD) Partner departments: DARD, DONRE, DPC, CPC, DEM

Activities

Outcomes: Community conflict is minimized and enforcement effort focused through consultation on boundary and resource use zone demarcation

Actions addressed 1.2.1, 1.2.2, 1.2.3, 1.2.4, 1.2.5, 1.3.1, 1.3.2, 1.3.3, 1.3.4, 1.3.5, 1.3.6 Timeframe 2005-2009 Budget US$ 660,000

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Project 5. Forest Protection Department strengthening Aim To create capacity at all levels within the primary agency responsible for

biodiversity and natural resource conservation to enable effective implementation of this strategy to meet its targets and those of related national and provincial strategies and programs.

Objectives 1. To re-structure and re-deploy rangers in a more effective way at provincial, district and protected area levels

2. To train rangers to effectively conduct enforcement, community and biological duties

3. To equip rangers to allow effective and safe conduction of activities 4. To develop the capacity for adaptive management based on provincial and

district level monitoring programs A well trained, managed and equipped ranger force will increase motivation,

decrease corruption and enable the successful implementation of this strategy. a. Re-structuring and re-deployment of Quang Nam Forest Protection Department Responsible department: FPD Partner departments: PPC, DPC Outcomes: Effective implementation of activities through clear job

descriptions, line management systems, personnel monitoring and the formation of trained, integrated teams within districts and between district and province level.

b. Training for increased ranger competencies Responsible department: FPD Partner departments: DARD, DONRE Outcomes: Effective implementation of activities through training based on

a provincial training plan linked to the re-organized department organizational chart leading to clear career planning and therefore increased motivation levels among rangers

c. Field and office equipment purchase Responsible department: FPD Partner departments: DF Outcomes: Increased ranger efficiency and safety due to the availability of

both basic and technological equipment d. Development and training for a provincial monitoring system Responsible department: FPD Partner departments: CP, IP, TP, DONRE, DARD, DOF, DOST

Activities

Outcomes: Pro-active enforcement and conservation action through provincial and district level database monitoring systems for biodiversity and violations linked to a GIS

Actions addressed 1.1.7, 2.2.6, 2.2.7, 3.1.2, 4.1.3, 4.1.3, 4.2.5 Timeframe 2005-2008 Budget US$ 230,000

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Project 6. Priority species Aim To secure the future of all priority 1 species by 2008 in at least one location and

lay the foundations for species recovery across Quang Nam province Objectives 1. To understand the distribution of and threats to priority 1 species

2. To protect priority populations of each priority 1 species through enforcement and local community consensus to conservation

3. To increase the awareness of priority 1 species within local communities and key policy makers

Rational Priority 1 species are an integral part of the natural heritage of Quang Nam and act as conservation flagships as well as indicators of the success of conservation and sustainable harvest mechanisms.

a. Review the status, distribution and threats to priority 1 species Responsible department: FPD Partner departments: DONRE, DARD Outcomes: Identification of key locations for and main threats to priority

species to enable effective distribution of resources for their conservation

b. Protection of key populations Responsible department: FPD Partner departments: DONRE, DARD Outcomes: At least one population of each priority 1 species protected in

the most important location in Quang Nam through effective enforcement and community-based conservation initiatives

c. Increase awareness of priority species among key stakeholders Responsible department: CEWG Partner departments: FPD, DCI

Activities

Outcomes: Increased support for the conservation of priority 1 species at both the community and policy maker level so increasing the effectiveness of conservation action

Actions addressed 3.1.1, 3.1.3, 3.1.4, 3.1.5, 3.2.1, 3.2.2, 3.3.1, 3.3.3 Timeframe 2005-2008 Budget US$ 342,000

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Project 7. Habitat connectivity protection and restoration Aim To secure habitat connectivity, maintaining the integrity of the forest and

freshwater ecosystems of Quang Nam Objectives 1. To protect and restore the five critical habitat connectivity areas in Quang

Nam 2. To create a policy and implementation framework that will prevent the

disruption of habitats in the future Rational Habitat connectivity is essential for the maintenance of a stable ecosystem and is

especially important in the conservation of wide-ranging species such as tiger and migratory species such as the anguilla eels.

a. District level protection and restoration plans developed and implemented for the five critical habitat connectivity areas

Responsible department: FPD Partner departments: DARD, DONRE, DPI, DOT Outcomes: The integrity of the forest ecosystem of Quang Nam is secured

and enhanced enabling adaptation to environmental changes over time and facilitating the survival of wide-ranging species and the dispersal of other species

b. Prevention and management of habitat disruption through infrastructure development

Responsible department: PPC Partner departments: DPI, DOI, DOF, FPD, DONRE, FPD

Activities

Outcomes: The impact of Infrastructure development is removed or minimized and monitored through policy changes, appropriate EIAs and effective construction monitoring

Actions addressed 1.1.4, 1.5.2, 1.5.4 Timeframe 2006-2009 Budget US$ 200,00

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Project 8. Freshwater conservation Aim To activate and effectively implement freshwater conservation and management Objectives 1. Assessment of freshwater management priorities, roles and responsibilities

2. Effective field management and conservation activated 3. Study the effects of dam construction on freshwater biodiversity, flood control

and local livelihoods and investigate the possibility of electricity companies paying for mitigation measures and environmental services

Rational Freshwater and its resources and biodiversity are often ignored and yet play a very important role in the life of the majority of the population of Quang Nam whether as a source of freshwater, fish or irrigation, industrial uses (cooling systems, sand dredging), electricity generation or through negative effects of flooding. Resources must be managed so all benefit and those disenfranchised by one use are compensated by the benefactor.

a. Assessment of management priorities and the roles and responsibilities of each department in implementing these

Responsible department: PPC Partner departments: DONRE, DOF, FPD, DARD, CEM, DOI, DPI Outcomes: Clear priorities, roles and responsibilities set enabling

appropriate distribution of resources and monitoring of actions b. Effective management of freshwater and its resources Responsible department: DOF Partner departments: DONRE, FPD, CEM, PPC, DPC, DI Outcomes: Freshwater and its resources are effectively managed through

district level multi-departmental management boards for watershed and community-based river system initiatives

c. Studies on the effect of dams and recommendations for fair distribution of resources and profits

Responsible department: PPC Partner departments: DPI, FPD, DOF, DONRE, DARD, CEM, DOST

Activities

Outcomes: The effects on community livelihoods and biodiversity from the current glut of planned dams are minimized through dam design, location and payment for environmental services by electricity companies

Actions addressed 1.1.5, 1.4.1, 1.4.2, 1.4.3, 1.4.4, 1.5.5 Timeframe 2005-2007 Budget US$ 130,000

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Project 9. Conservation education Aim To ensure key stakeholders are aware of the importance of natural resource and

biodiversity conservation to the sustainable development of Quang Nam province Objectives 1. To create an enabling environment for effective conservation education

throughout the departments and districts of Quang Nam province 2. To conduct a series of high profile awareness campaigns targeting key issues

identified during a provincial conservation education needs assessment Rational Much of this strategy requires support from a range of stakeholders to enable

effective implementation. Such support will only be obtained when all stakeholders are fully aware of the importance of each of the activities described here and the consequences of either not or weakly conducting these activities.

a. Create an enabling environment for effective conservation education Responsible department: CEWG Partner departments: PPC, FPD, DPC, CPC Outcomes: A wide range of stakeholders will be easily targeted by

awareness and education activities through a network of trained educators at all levels with a provincial remit for implementation of conservation awareness and environmental education work

b. Conduct a series of high profile awareness campaigns Responsible department: CEWG Partner departments: CID, FPD, DONRE, DARD

Activities

Outcomes: Critical issues such as watershed protection, sustainable use of natural resources, biodiversity protection and protected areas will be clearly understood by a range of stakeholders at all levels and geographical locations

Actions addressed 5.1.1, 5.1.2, 5.1.3, 5.2.1, 5.2.3, 5.2.3, 5.4.1, 5.4.2 Timeframe Throughout Budget US$ 195,000

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Project 10. Gold mining Aim To control and monitor gold mining throughout Quang Nam Objectives 1. To review the mining sector of Quang Nam province including all concessions

and illegal mining to provide clear guidelines on the requirements of mining activities, where mining is/is not allowed and mitigation measures to reduce impacts on health, local livelihoods and biodiversity

2. Removal of all illegal mining and its negative effects on health, local livelihoods and biodiversity

Rational The current gold rush in Quang Nam is large and uncontrolled resulting in major direct and indirect effects on health, local livelihoods, culture and biodiversity. Mining requires close regulation, monitoring and enforcement for it to be of benefit not detriment to Quang Nam, but is profitable enough to finance such activities itself.

a. Review the mining sector of Quang Nam province Responsible department: DONRE Partner departments: PPC, DOI, FPD Outcomes: Clarification of laws, policy and responsibilities will enable

effective implementation and funding of mitigation measures and monitoring so increasing prospects for communities and biodiversity in areas with gold deposits

b. Removal of all illegal mining Responsible department: DPC Partner departments: CP, FPD, DOI, DONRE

Activities

Outcomes: Access to freshwater and fish stocks, a decrease in conflict with outsiders, cultural erosion and community cohesion and the removal of local wildlife populations will increase local community access to natural resources and so facilitate socio-economic development through sustainable use of natural resources

Actions addressed 2.3.6, 2.3.7, 2.3.8 Timeframe 2005-2009 Budget US$ 150,000

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Annex 14: Involuntary Resettlement Policy in Vietnam 1. In Vietnam policies relating to compensation and resettlement for development projects are subject to ongoing improvements. Before 1992, all land belonged to the State, was subject to State or collective land use rights, and could in many cases be recovered as required without compensation, or with compensation paid only to those local government or collective organizations that were using the land. No clear compensation level for affected assets was defined, with compensation being mainly based on agreements. 2. However the Constitution 1992 and the Land Law 1993 established a legal basis for present compensation and resettlement policy. The principles contained in these pieces of legislation were embodied by Decree 90/CP dated August 17, 1994 and then by Decree 197/2004/ND-CP issued on December 03, 2004 by the Government relating to compensation for loss when the State recovers land for the purposes of national defense, security and national public interest (land recovered for development projects is considered as being for the national interest). 3. A summary of legal documents relevant to compensation and resettlement for development projects to date are:

• Circular No.1792- TTg defines temporary regulations on compensation for houses,

land, perennial, trees and crops of local people in areas required for economic development and city expansion. This circular was issued by the Premiers Office on January 11, 1970 and states the principles of compensation as “properly ensure economic interests of agricultural and cooperative and entire people.” With that Circular, the awareness of affected people changed from being “given proper consideration to interests and livings of land users…” in the previous Decree 151 to having their rights to be properly compensated recognized.

• Decision No 186 HDBT on compensation for agricultural land and forest land

required for use for other purposes was promulgated on May 31, 1990 by the Council of Ministers. Compensation rates for agricultural land and forest land in this Decision are dependant on area, quality and geographical location of land.

• Decree 90/CP was issued on August 17, 1994 and addresses compensation for

losses when the State recovers land for the purposes of national defense, security and national and public interest, and includes four chapters

(i) Chapter I: Entitlements of compensation policy; (ii) Chapter II: Compensation for Loss of Land; (iii) Chapter III: Compensation for Loss of Assets; and (iv) Chapter IV: Organization for implementation.

• Decree 22/1998/ND-CP was issued on April 24, 1998 and replaced Decree 90/CP.

This decree deals with compensation for losses when the State recovers land for the purposes of national defense, security and national and public interest. Decree 22/1998/ND-CP is currently the most important document relating to compensation and resettlement policies of the Vietnamese Government (together with Circular 145/1998/TT-BTC issued on November 4, 1998, guiding the implementation of the Decree). In comparison with Decree 90/CP, Decree 22/1998-CP shows many

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improvements relevant to compensation and resettlement policy for affected people including:

(i) Structure: Decree 22/1998/ND-CP has 6 chapters with 40 articles (Decree

90/CP has 4 and 17, respectively). Besides numerous articles which supplement existing chapters of Decree 90/CP, it has 2 new chapters named “Policy of Support” and “Establishment of resettlement site”.

(ii) Scope of application: Decree 22/1998-CP is similar to Decree 90/CP in its

scope, but the definition of land use for the purposes of national and public interests has been broadened, and now includes land for the purposes of production projects EPZ, Industrial Zones, recreation centers, tourists areas, new urban development, living quarter areas and other investment projects licensed by competent State authorities, and land for other projects for public utilities, which are not for local trading purpose and stipulated by the Provincial, Cities People’s Committee (Art. 1). This Decree will not be applied to the land recovered for development of public commune works under the mode of popular mobilization.

(iii) Responsibilities for compensation payment: Article 2 of Decree

22/1998/ND-CP clearly stipulates: Individuals or organizations, who are assigned or leased land by the State (land users or developers) to use for purposes of national defense, security and national and public interests, are responsible for making compensation payment for recovered land and real assets attached to land.

(iv) Eligibility for compensation: a) For land losses (Art. 6); b) For houses,

structures and other assets (art. 16 and 18).

(v) Method and level of compensation: a) for land; b) For houses and structures (Art. 17); c) For affected persons who are renters of State- owned houses; d) For technical infrastructure constructions; e) For grave; g) For tree, crop; h) For cultural constructions, historical relics, temples and pagodas.

(vi) Time of compensation payment: not clearly defined in the Decree and

relevant Circulars.

(vii) How to receive compensation: procedure of implementation of compensation for losses (Art. 34).

(viii) Assistance policies for social and economic rehabilitation: Support for

stabilization of production and life for those who have to move another place; allowance for job severance to the employees of the enterprise that has to move in the period of production and business stoppage; provides training support expenditure for agricultural laborers.

(ix) Resettlement sites (Art. 28, 29, 30 and 31): The provincial People’s

Committee shall decide or empower the district People’s Committee to decide and organize the setting up of a concentrated- resettlement site or group – resettlement site suited to the actual situation in the locality. The building of the resettlement site must be planned according to the investment project and must be approved by the competent State agency as currently prescribed for investment and construction. Before apportioning land to households and individuals, the resettlement site must have in place the appropriate

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infrastructure in accordance to the plans on residential land, and construction land of the locality.

(x) Participation of affected households: Art. 28 of the Land Law stipulates:

“Before land recovery, the land user shall be notified of the reason, time, and plan of relocation and methods of compensation”. Decree 22/1998/ND-CP shows an advance in encouraging project affected households (PAHs) to directly participate in discussion and decision on issues relevant to compensation and resettlement, by regulation on inclusion of PAHs representatives in Resettlement Committee.

(xi) Grievance redressed: Art. 38 of Decree 22/1998/ND-C.

• Decree 52/CP was issued on July 8, 1999 and came into effect on July 23, 1999 (to

replace Decree 42/CP dated July, 1992 and Decree 92/CP dated August 23, 1997). It deals with regulations on investment and construction management. The Decree contains regulations relevant to preparation, review, approval, and implementation of resettlement plans of investment projects. Specific requirements of the decree are as follows:

o Art. 23 states that the main contents of pre-feasibility report should include

description of selection of construction area and estimated land use, resettlement and social, environmental impacts (with analysis and evaluation in detail) as well as to assess socioeconomic effectiveness of the investment. Art.34 regulates that the feasibility report should present specific location option (or area of location, construction line) in accordance with construction planning (including documents showing location selection which also points out solutions to minimize social and environmental impacts); Land clearance option, resettlement plan (if any).

o Art. 27 and 30 require that a Resettlement plan will be included in Project’s

review and approval contents. o Art. 35 on preparation of construction ground stipulates: Developer is

responsible for compensation and land clearance activities can be implemented by either the developer itself or hiring a responsible local organization.

o Art. 66 state that compensation, land clearance and resettlement expenditure

should be included in Total Construction Budget Estimate. • The Land Law 2003: The new Land Law was passed by the National Assembly of

the Socialist Republic of Vietnam on 26 November 2003 at the XIth Tenure, 4 Session. This Law became effective as of 1 July 2004, replacing the 1993 Land Law (and Laws on amendments and supplements to some articles of the Land Law 1998 and 2001). The newly approved Land Law marks an important benchmark in the process of improvement of the land policy and legislation of Vietnam at the same time meeting new demands of the country's development during this period of time. Specific requirements of the Land Law are as follows:

o Article 39. Recovery of land for the purposes of national defense,

security, national benefits, public benefits:

(i) The State shall carry out land recovery, compensation and site clearance when the land use planning and plans have been publicized

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or when investment projects having land use demands in conformity with the land use planning and plans have been approved by authorized State bodies.

(ii) At least ninety days prior to the recovery of agricultural land or one

hundred and eighty days prior to the recovery of non-agricultural land, the authorized State bodies shall notify the land user of the reasons for which the land is to be recovered; the time and plan for removal; and the overall plan for compensation, site clearance and resettlement.

(iii) After the recovery decision has been issued and the plan for

compensation, site clearance, and resettlement has been approved by authorized State bodies and publicly announced, the person whose land is recovered shall have to comply with the land recovery decision.

(iv) If the person whose land is recovered does not comply with the land

recovery decision, the People's Committee that has the authority to decide the land recovery shall have the right to enforce its decision. The person subject to the enforcement shall have to comply with the enforcement decision but has the right to complain.

o Article 42. Compensation, resettlement for persons whose land is

recovered

(i) In cases where the State recovers land whose users hold land tenure certificates or who are eligible to be granted with land tenure certificates in accordance with Art. 50 of the Land Law, such land users shall be entitled to compensation, except for cases stipulated in clauses 2,3,4,5,6,7,8,9,10, 11, 12 of Art. 38 and Points b, c, d, dd and g, Clause 1, Art. 43 of the Land Law.

(ii) Land users shall be compensated in the form of allocating new land

with the same land use purpose with the recovered land. In cases where there is no land for compensation, such land users shall be compensated with the value of land use rights at the time of the recovery decision.

(iii) Resettlement zones shall be planned to shelter various resettlement projects, and the development conditions of the resettlement zones should be equal or higher than those of the recovered residential area.

(iv) In cases where the land of households, individuals who directly engage in production activities are recovered and there is no land for compensation in order for them to continue production activities, in addition to the compensation in cash, the persons whose land is recovered shall receive supports from the State to stabilize their lives, be trained in new careers, and be provided with new jobs.

o Article 105. General right of land users

Land users shall be entitled to the following general rights:

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(i) To be issued with a land tenure certificate; (ii) To benefit from the results of their labour and investment in the land; (iii) To enjoy the benefits derived from works constructed by the State for

protecting and improving agriculture land; (iv) To receive State guidance and assistance in the process of

rehabilitation and fertilization of agricultural land; (v) To be protected by the State against infringements for their legal land

use rights; (vi) To complain, denounce, sue against breaches of land legislation.

o Article. 106. Rights to exchange, transfer, lease, sub-lease, inherit,

donate land use right; mortgage, guarantee, make capital contribution in the form of land use rights and receive compensation upon recovery of land by the State Land users shall have the rights to exchange, transfer, lease, sublease, inherit, donate land use rights; mortgage, guarantee, making capital contribution with land use rights as stipulated in clause 2, art. 110, clause 2 and 3, art. 112; clause 2, 3, 4, 5, 6, 7 and 8, Art. 113; clause 2, Art 115; point b, clause 1, points b, c, d, dd and e, clause 3, Art. 119, point b, clause 1, point b and c, clause 2, Art. 120 of the Land Law, if they meet the following conditions: (i) Have the land tenure certificate; (ii) The land is not subject to any disputes; (iii) The land use right is not confiscated to ensure the execution of court

decisions and judgments; (iv) Within the land use term. Land users shall be compensated when the State recovers land as stipulated in Section 4 Chapter II of this Law.

• Decree 197/2004/CP-ND (Hanoi, December 03, 2004): This Decree replaces Decree

No. 22/1998/ ND-CP dated 24 April 1998 of the Government on making compensation for losses when the State recovers land for use in purposes of national defence, security, national interests, public interests. The earlier provisions on compensation, assistance, resettlement when the State recovers land, which are contrary to this Decree, are now annulled.

4. o Application scope (Art.1)

(i) This Decree regulates compensation, assistance and resettlement

when the State recovers land for purposes of national defense and security, national interests, public interests and economic development as stipulated in Article 36 of Government Decree No 181/2004/ND-CP dated 29 October 2004 on the implementation of the Land Law.

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(ii) In any case where a project uses official development aid (ODA), if the

compensation, assistance and resettlement as required by the sponsor are different from the provisions of this Decree, then before signing an International Treaty, the host agency of the investment project shall have to report to the Prime Minister for consideration and decision.

(iii) In any case where the International Treaty signed or participated in by

Vietnam contains regulations that are different from the ones provided in this Decree, then the regulations of the Treaty shall be applied.

(iv) Cases that do not fall within the scope of application of this Decree

(a) Population communities that construct and restore public works serving the common interest of the whole community using funds contributed by the public or assisted by the State budget.

(b) When the State recovers land that does not fall within the

scope of the application provided in item 1 of this Article of this Decree.

o Subjects of application (Art.2) which are stipulated in Article 2 Decree

No. 197/2004/ND-CP are as follows:

Organizations, population communities, religious institutions; households, individuals within the country, Vietnamese who are settled overseas, foreign organizations or individuals that are using the land to be recovered by the State (thereafter are generally called persons from whom land is recovered) and are eligible for land, property compensation shall be compensated as regulated. In cases of having no place to live after the land recovery, resettlement will be arranged. Payment for compensation and arrangement of resettlement shall not be made to:

(i) Persons who are lessees or borrowers of land from persons from

whom the land is recovered. (ii) Any person who promised his contribution of capital to join a business

venture or organization but has not transferred the Land Use Rights or property owning rights to that business venture or organizations.

(iii) Other subjects who are not allocated land or leased land by the State. The settlement of compensation or assistance payments (if any) between a legal land user and the owner of property on the recovered land who is the lessee or the borrower from someone else, or who is the contributor of capital to joint a business venture or organization will be made under the regulations on civil relations and signed economic contracts.

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o Payment for compensation, assistance and resettlement (Art. 3) which is stipulated in Article 3, Decree No. 197/2004/ND-CP is as follows:

(i) In cases where the State recovers land to be used for purposes

stipulated in item 1 Article 1 Decree No. 197/2004/ND-CP, the State shall have to implement the compensation, assistance and resettlement.

(ii) Persons who are allocated or leased land by the State to be used for

purposes stipulated in item 1 Article 1 Decree No. 197/2004/ND-CP shall have the responsibility to make payment for compensation, assistance and resettlement. Foreign organizations or individuals, Vietnamese who are settled overseas and who invest in Vietnam and who are allocated land by the State with the collection of land use fees, or are leased land by the State shall not have to pay for the costs of compensation, assistance and resettlement.

(iii) In cases where the persons allocated or leased land by the State with

the collection of land use fees or land lease rents have to pay the costs of compensation, assistance and resettlement for the persons from whom the land is recovered, the money used for compensation, assistance and resettlement shall be subtracted from the land use fees or land lease rents that must be paid. The specific rate of subtraction is provided in the Government Decree on land-use-fee collection and the Government Decree on land-lease-fee collection.

o Resettlement which is stipulated in Article 4 Decree No. 197/2004/ND-CP

shall only be implemented in one of the following cases:

(i) 4.1. A household or individual who has to move their residence because the whole of their residential land is being recovered or the remaining area of land after recovery is smaller than the quota for new land allocation at the locality (with the exception of cases where that household or individual has no demand for resettlement).

(ii) 4.2. The remaining area after recovery is not appropriate for

residential house construction under planning for a household or individual.

(iii) 4.3. A household or individual who is using residential land situated

within the safety corridor when a public work with the protection safety corridor is being constructed has a need to move the residence.

(iv) 4.4. Other cases shall be decided by the Chairman of the People’s

Committee of a province or city under central control (thereafter generally called the Provincial People’s Committee) to be appropriate with the current land law and the actuality at that locality.

o Compensation principles are stipulated in Article 6 Decree No.

197/2004/ND-CP. Some items of this Article are as follows:

(i) As stipulated in item 2: Persons who are recovered of a certain type of land shall be compensated by the allocation of new land with the same purpose of use. If there is no land available for such

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compensation, they shall be compensated with Land Use Rights at the time of the recovery decision. Some cases are as follows (a) Compensation shall only be made in accordance with

agricultural land for persons who are entitled to use agricultural land under regulations of law but deliberately use it as non-agricultural land.

(b) Any person who is entitled to use non-agricultural land (which

is not residential land) under regulations of law but deliberately uses it as residential land, then compensation shall only be made in accordance with non-agricultural land (which is not residential land).

(ii) The compensation shall be made by the allocation of new land with

the same purpose of use. If there is no land available for such compensation, compensation shall be made by residential houses or money to be appropriate with the current land law and the actuality at that locality.

(iii) Item 3 provides cases where land users who are eligible for

compensation when the State recovers land but have not fulfilled their financial liabilities on land under regulations of law, then the sum of financial liabilities must be subtracted from the money for compensation, assistance in order to be reimbursed to the budget. The financial liabilities include: land use fees that must be paid, land lease rents for the land leased by the State, income tax from the transfer of Land Use Rights for other lots of land of the persons from whom the land is recovered (if any), money obtained from fines on law violations on land, compensation money for the State when damage is caused in the use and management of land, fees and charges in the use and management of land.

(iv) In cases where the financial liabilities on land that must be paid are

greater than or equal to the land compensation money, the deducted money shall be at maximum equal to the money for land compensation.

(v) 1.3. The area eligible for compensation is that which is identified on

the actual land – the actual measurement of the recovered area of land of each land user.

o Eligibilities for land compensation are stipulated in Article 8 Decree No.

197/2004/ND-CP. Some items of this Article are as follows:

(i) Item 2 stipulated that any land allocation decision from a competent State agency under regulations of law on land means the agency competent in land allocation must be in accordance with regulations of law on land at the time of having the decision.

(ii) Some of the papers stipulated in item 3 are as follows:

(a) Point a) stipulates that dossiers of Land Use Rights prior to 15th October 1993 issued by a competent agency during the course of executing land policies of the Republic Democratic

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State of Viet Nam, the Republic Provisional Revolutionary Government of Southern Viet Nam and the Socialist Republic of Viet Nam shall be implemented in accordance with the guidance of the Natural Resources and Environment Department.

(b) Point c) stipulates that there are legal dossiers on inheritance,

offer of Land Use Rights or property attached to the land, dossiers of the allocation of compassionate houses attached to the land, including:

(1) dossiers of inheritance under regulations of law

(2) dossiers of the gift of a house or land notarized by a

notary public or certified by the Commune People’s Committee at the time of offer

(3) dossiers of allocation of a compassionate house

attached to the land of a house-allocating organization or agency and are certified by the Commune People’s Committee

(iii) Point e) stipulates that there are dossiers on concessional purchase of

a dwelling house attached to residential land under law regulations which is guided as follows:

(a) Houses with dossiers of concessional house purchase or

purchase of the house attached to residential land must be residential house under the State’s ownership.

(b) A residential house under the State’s ownership includes a

house taken over from the ex-regime, a house without its owner and has been identified as owned by the State, a house built from the State budget for investment, a house built by money sourced from the State budget, a house built by money in form of mutual work between the State and the people and other houses under the State ownership.

(c) There are dossiers of concessional house purchase or

purchase of the house attached to the residential land owned by the State prior to 05 July 1994.

(d) There are dossiers of the purchase of a house under the State

ownership issued by an agency, an administrative unit, a unit of people’s army forces, a State organization and a State enterprise, an organization specialized in house-for-sale management under regulations in the Government Decree No 61/CP dated 05 July 1994 on house trading, selling and buying.

(iv) Item 6 stipulates that: A household or individual who is using land

without any of the various kinds of dossiers prescribed in item 1, 2, 3 of Article 8, Decree No. 197/2004/ND-CP, but the land has been stably used since before October 15th 1993. It makes no difference between the person who has been using the land before October 15th

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1993 or after October 15th 1993, provided that the land is now certified by the Commune People's Committee as being without any disputes, its owner shall be compensated when the State recovers the land.

o Land prices for calculating compensation and the remaining costs of

investment in land are prescribed in Article 9 Decree No. 197/2004/ND-CP. Some items of this Article are as follows:

(i) Item 1 prescribes that the land price for calculating compensation

must be the price of the land having the same use purpose with the land subject to recovery at the time of the land recovery decision annually released by the Provincial People’s Committee on 01 January under the Government regulations. Compensation shall not be made in accordance with the price of the land whose use purpose will be changed after recovery. Compensation shall not be made in accordance with the land price due to the fact that the actual use of the land fails to match land use purpose under regulations of law.

(ii) Item 3 prescribes the remaining costs of investment in land are the

actual costs invested in the land by land users to use it for approved land use purposes. These costs have not been able to be recovered by the time the State recovers the land. Amounts of the remaining costs of investment in land must be proved by sufficient dossiers, documents and facts. The remaining costs of investment in land are identified as equal to the total reasonable costs of investment in the land in money terms subtract the amount of money that corresponds to the time of having used the land. Amounts of the remaining costs of investment in land comprise:

(a) Land use fees of the time of not having yet used the land in

cases of timed land allocation, or the land lease money that has been paid in advance for the time of not having yet used the land (with documents and receipts of having paid the money).

(b) Costs of site filling, costs of restoring the land in accordance

with the status quo of the land when being allocated or leased, which are consistent with land use purposes. Any cases where the recovered non-agricultural land or residential land has been compensated in accordance with the prices of non-agricultural land or residential land, compensation will not be made for the costs of site filling or costs of land restoration.

(c) Other relevant amount of costs.

(iii) The Provincial People’s Committee shall decide on the identification of the amounts of remaining costs of investment in land under the request of the Department of Finance to be appropriate with the actual situations at the locality. Costs without adequate dossiers, documents and facts will not be eligible for compensation.

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o Compensation and assistance for agricultural land of a household or individual are prescribed in Article 10 Decree 197/2004/ND-CP. Some contents of this article are as follows: (i) Agricultural land as prescribed in Article 10 comprises: land for annual

tree planting (land for rice growing, pasture land used for raising cattle, other types of land for annual tree planting); land for perennial tree planting; forestry land (forest land for production; protective forest land; special-use forest land); land for marine animals breeding; land for salt production; other types of agricultural land under regulations in item 4 Article 6, Government’s Decree No 188/2004/ND-CP dated 29 October 2004

(ii) Item 1 and 3 prescribe cases of compensation by a new land

allocation with the same use purpose. Depending on the actual land bank at the locality, the quota of new land allocation for each household will not exceed the recovered area of land and will not exceed the quota of agricultural land allocation in the locality. If there is no land available for compensation, then compensation will be made by money in accordance with the price of the agricultural land of the same category in the locality.

(a) In any case where the land price of the new allocated land is

lower than that of the recovered land, in addition to being allocated the new land, the person from whom the land is recovered will be compensated in cash for that difference in value. In any case where the recovered land area is bigger than the new allocated land area, compensation will be made in cash for such difference in area (bigger).

(b) In any case where the land price of the new allocated land is

higher than that of the recovered land, compensation will be made by a new allocation of land with the area corresponding to the value of the Land Use Rights of the recovered land and appropriate with the actual land bank at the locality.

(iii) Item 2 prescribes the compensation of the agricultural land lying scattered inside the residential area, pond land or garden land adjacent to the land in residential area. Apart from being compensated according to the price of the agricultural land of the same category, assistance will also be made in cash. The land prices for calculating the assistance are from 20% to 50% of the prices of the adjacent residential land. It is specifically guided as follows:

(a) Agricultural land that lies scattered in the residential area must

be plots of land inside the residential land.

(b) Garden or pond lands adjacent to the land inside a residential area are plots of land that have at least one side adjacent to the land inside the residential area.

(c) The specific rates of assistance are between 20% and 50%

and are decided by the Provincial People’s Committee under the request of the Department of Finance with the participation

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of relevant departments to be appropriate with the actual situations in the locality.

(iv) Item 5 prescribes compensation when agricultural land used by

households or individuals under piecework contracts given by State-owned agricultural or forestry stations is recovered. It is specifically guided as follows:

(a) When the State recovers land from any farm household or

individual under piecework contracts who is directly engaged in agricultural production and the source of life mainly comes from agricultural production, the household or individual will not be entitled to land compensation, but will be compensated for the remaining costs of investment in the land and will be supported. In cases of forestry land which has been planned for forests for production and business and which has been assigned to a household or an individual to use in a stable and long-lasting manner, when the State recovers land, they are entitled to land compensation. In cases of not yet being assigned for a stable and long lasting use, when the State recovers land, they will not be entitled to land compensation, but they are entitled to the costs of investment in the land.

(b) When the State recovers land in any case where the forestry

land already planned for protective forests or special-use forests or land that belongs to protective forests or special-use forests assigned by the State to agricultural or forestry stations, People’s Committees at various levels or the Management Board on protective forests, special-use forest assigned under piecework contracts to organizations, households or individuals for them to afforest, raise, take care of and protect forests within their localized area using funds sourced from the State budget, that household or individual will not be entitled to land compensation, but they shall be compensated for the trees planted on the land. The rate of compensation is equal to the rate of product division under regulations in the inter-Circular between the Ministry of Finance and the Ministry of Agriculture and Rural Development No 80/2003/TTLT/BNN-BTC dated 03 September 2003 guiding the Prime Minister’s Decision No 178/2001/QD-TTg dated 12 November 2001 on rights to enjoy benefits, obligations of households and individuals who are assigned or leased land or are under piecework contracts of forests and forestry land.

o Compensation for non-agricultural land (except for residential land) of households or individuals which is regulated in Article 11 Decree No 197/2004/ND-CP; is as follows:

(i) When the State recovers land a household or an individual Land who

has used it as a site for the construction of non-agricultural production and business place of a household or individual and this land was originally residential land which was then assigned to that household or individual to use in a stable and long lasting manner or that household or individual is eligible for a grant of Land Use Rights

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certificate, that land will be compensated according to the residential land price.

(ii) Any household or individual who is using non-agricultural land with a

time use limit acquired by means of transfer, inheritance, offer, donation, or by being assigned by the State with the State collecting land use fees will be entitled to compensation according to non-agricultural land price. In any case where a household or individual is using land leased by the State or the Commune People’s Committee within their assigned authority, the household or individual will only be compensated for the remaining costs of investment in the land when the State recovers the land.

o Compensation for agricultural land, non-agricultural land of

organizations (Art.12)

(i) Any organization using agricultural land or non-agricultural land allocated by the State and has paid land use fees or received land transfer from a legal land user with paid land use fees or money paid for purchasing a transfer of Land Use Rights that was not sourced from the State’s budget, will be compensated when the State recovers land.

(ii) Any organization which has been leased land or allocated land by the

State which does not have to pay land use fees or has paid land use fees sourced from the State budget will not be compensated for land when the State recovers land, but will be compensated for the remaining costs of investment in the land if that invested money was not sourced from the State budget.

(iii) In cases of religious organizations that have been using land in a

stable manner, if the land was assigned by the State without collection of land use fees or lease rents, it will not be eligible for compensation but will be compensated for the remaining costs of investment in the land.

o Compensation for non-agricultural land which is residential land that is

regulated in Article 13 Decree No 197/2004/ND-CP is as follows:

(i) Residential land which is identified under regulations in Article 50, 83, 84, 87 of the Land Law 2003 and Article 45, 46, 47, 48, 79, 80 Decree 181/2004/ND-CP, will be compensated in cash in accordance with price of residential land when the State recovers land.

(ii) The identification whether the land is residential land is so that when

the State recovers land compensation will be made in accordance with residential land when the State recovers land under the guidance of the Department of Natural Resources and Environment.

(iii) If a person from whom the land is recovered must move residence,

the person will be compensated by a new land allocation, by a resettlement house or by money in accordance with the value of the Land Use Rights at the time the recovery decision is released.

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o Principles of compensation on property are regulated in Article 18 Decree No 197/2004/ND-CP. Some items in this Article are specifically guided as follows:

(i) Item 1 makes stipulations about properties attached to the land which

include: a house or structure built as a single one; a house or structure built systematically within a land precinct (hereafter referred to as a house or structure), grown trees or plants on land.

(ii) Item 5 makes stipulations about properties attached to the land which

are established after the notification of the land recovery decision shall not be compensated, including grown trees or plants on land.

o Compensation for a house or structure built on land is stipulated in

Article 19 Decree No 197/2004/ND-CP. Some items in this Article are specifically guided as follows:

(i) Item 2 makes stipulations about properties which are houses or other

structures (not included in regulations in item 1) are specifically guided as follows:

(a) The demolition of a built house or structure, which affects other

structures resulting in the impossibility to use them in conformity with original designs or construction planning or in the forceful demolition, these affected structures shall be compensated.

(b) The identification of the remaining percentage of quality of a

damaged house or structure implemented by the agency in charge of the implementation of compensation, assistance and resettlement with the participation of specialized agencies. The remaining percentage of quality of a house or structure is identified in accordance with guidance from the Ministry of Construction and other relevant Ministries and agencies.

(c) In cases where a work with technical infrastructural

composition is no longer able to be used or actually unused at the time the decision to recover is made, it shall not be compensated when the State recovers land.

(ii) In cases where a built house or structure which is partially demolished and the remaining part is unable to be used; or a demolished house or structure affects other structures within the same land precinct, but it still exists without being able to be used in conformity with the original designs or construction planning, that structure shall be compensated for the whole structure under stipulations in Article 19 Decree No 197/2004/ND-CP and under guidance in this Circular.

o Handling of some specific cases of compensation and assistance on

houses or structures as regulated in Article 20 Decree No 197/2004/ND-CP. Some items in this Article are specifically guided as follows:

(i) Item 1 makes stipulations about houses or other structures which are

eligible to be built on the land with eligibility for compensation shall be

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compensated under regulations in Article Decree No 197/2004/ND-CP and under guidance in this Circular.

(ii) Point a) item 2 specifies houses or other structures which are

ineligible to be built on the land with eligibility for compensation as stipulated in Article 8 Decree No 197/2004/ND-CP and which were built before 01 July 2004 shall be compensated under Article 19 Decree No 197/2004/ND-CP and under guidance in item 2 of this Part. If they have been built since 01 July 2004 onwards and the building was not in conformity with the land use purposes under regulations of law, they shall not be compensated. In special cases, the Provincial People’s Committee shall consider the forms of assistance for each specific case to be appropriate with the actual situations at the locality.

o Compensation for removal of graves and tombs (Art.22)

In cases of removal of graves and tombs, the rates of compensation money will be calculated for the cost of land, cost of digging, exhumation, removal, rebuilding and other directly related eligible costs. People’s Committees will specify the rate of compensation to be appropriate with local practices and actual situations.

o Compensation for cultural works, historical monuments, worship houses, communal houses, pagodas, shrines, ancestral temples (Art.23) For any cultural work, historical monument, house of worship, communal house, pagoda, shrine or ancestral temple, that has to be removed when land is recovered for projects, then the compensation for the removal of cultural works, historical monuments, house of worship, communal house, pagoda, shrine or ancestral temple will be decided by the Prime Minister if they are Central-managed works, and by the Chairman of the Provincial People's Committee if they are local-managed works.

o Compensation for grown plants and livestock is stipulated in Article 24 Decree No 197/2004/ND-CP. Some items of this Article are as follows:

(i) Item 1) stipulates that the compensation rate for annual crops equals

the yield value of a harvested crop. The yield value of the harvested crop is calculated according to the highest crop production during the immediate 3 years earlier of the main crop at the locality according to the average current price of the agricultural products of the same category at the locality at the time of land recovery.

(ii) Item 2 makes stipulations about compensation for perennial trees.

Perennial trees include industrial trees, fruit trees, trees for wood, trees for leaves, forest trees as regulated in item 1 Article 2 in the Government’s Decree No 74/CP dated 25 October 1993 regulating in details the implementation of the Law on Agricultural Land Use Taxation. When the State recovers land, compensation shall be made in accordance with the existing value of the plantation. This value excludes the value of the Land Use Rights. The existing value of the perennial plantation used to calculate compensation is identified as follows:

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(a) Grown trees that are in the investment cycle or in the period of capital construction, the existing value of that plantation is the total original investment expenses and the expenses of care counted till the time of land recovery which is calculated in cash according to the current price at the local market.

(b) Perennial trees, which are the kind that are harvested once

(trees for wood) and which are in the period of harvesting, the existing value of that tree garden eligible for compensation shall equal (=) the quantity of each kind of grown tree multiplied (x) by the selling price for 1 tree of the same kind, same age, same size or same ability of producing yield in the local market at the time of recovery subtracts (-) the value of return (if any).

(c) Perennial trees, which are the kind that are harvested many

times (fruit trees, trees for oil, trees for resin) and which are in the period of harvesting, the existing value of the tree garden eligible for compensation is the local selling price of the tree garden at the time of recovery subtracts (-) the value of return (if any).

(d) Perennial trees, which have reached the due time for

concessional reduced purchase, compensation is only made for the expenses of tree cutting for the owner of that tree garden.

(iii) Original investment expenses, expenses of care, expenses of tree

cutting as mentioned in this item shall be calculated in cash according to the average rate of expenses in the locality which is specifically provided by the Provincial People's Committee for each kind of tree.

(iv) In any cases where grown trees and minor forestry products that are

cultivated on the forestry area allocated by the State to a household or individual for cultivation, breeding, protection or afforestation, and at the time of being allocated, the land was bare land or bare hills and the household or individual had to invest in the afforestation with their own money, compensation shall correspond to the selling price of trees that are felled at the access to the forest of the same category in the locality at the time of having the land recovery decision, after deducting the value of return (if any).

o Handling of compensation money for properties under State ownership,

which is stipulated in Article 25 Decree No 197/2004/ND-CP, is as follows:

Any organization from which land is recovered by the State which is subject to damage to properties assigned by the State for management and use and they have to move to a new place, they are eligible to use the compensation money for properties to invest in the new place in accordance with the investment project approved by a competent level. This amount of compensation money for properties shall be paid by the persons who are allocated or leased land by the State. If this amount is not fully used, the remaining amount shall be paid into the State budget.

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o Assistance for life stabilization and production stabilization as stipulated in item 2 Article 28 Decree No 197/2004/ND-CP, is as follows:

When the State recovers land from economic organizations or business and production households resulting in their discontinuation of business and production, they will be assisted equal to a maximum of 30% of a year’s after tax revenue, according to the average rate of revenue of the immediate previous 3 years. The after tax revenue will be identified based on the financial report approved by a taxation agency. In any case where it has not been approved by a taxation agency, the identification of after tax revenue shall be based on the after tax revenue declared by the organization in the financial reports or reports on the output of business and production activities at the end of each year that have already been sent to the tax agency.

o Assistance for occupational change and job creation as stipulated in

Article 29 Decree No 197/2004/ND-CP, is as follows:

(i) Assistance for occupational change for workers of working age in households from whom the agricultural land for production is recovered is implemented in the form of assisting a part of the cost for vocational training in local vocational centers. Specific assistance rates shall be decided by the Chairman of the Provincial People's Committee to be appropriate with the actual situations at that locality.

(ii) In any cases where the locality has not been able to organize training

for occupational change and the project developer of the recovered land fails to organize the occupational training or the persons who are entitled to the occupational training assistance, then the assistance shall be made in cash. The specific rates of money assistance shall be decided by the Chairman of the provincial People's Committee to be appropriate to the actual situations at that locality.

o Assistance for people renting houses which are not under State

ownership as stipulated in Article 30 Decree No 197/2004/ND-CP, is as follows:

When the State recovers land from any household or individual holding a permanent resident registration at a locality, who is renting a house which is not owned by the State, and who has to move away from the original residence as a result, will be assisted for the cost of removal that equals the rates prescribed in Article 27 Decree No 197/2004/ND-CP. The persons who are assisted must possess a house lease contract.

o Other forms of assistance as stipulated in Article 32 Decree No 197/2004/ND-CP are as follows: In addition to being assisted as prescribed in Article 27, 28, 29, 30 and 31Decree No 197/2004/ND-CP, depending on the actual situations at the locality, the Chairman of the Provincial People's Committee shall decide other measures of assistance to ensure the stabilization of life and production for people from whom land is recovered. The additional amount of assistance money shall be paid by the persons who are allocated or leased the recovered land by the State. In any case where land is recovered according to land use plans and planning but there have not been any land use projects,

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the land bank using organization shall have to be responsible for such payment.

o Arrangement for resettlement is stipulated in Article 34 Decree No 197/2004/ND-CP. Some items in this Article are as follows:

(i) Notify publicly the schemes of arrangement for resettlement. Create

opportunities for resettled households to have a look at their resettlement place and publicly discuss on the estimated plan of arranging households for resettlement.

(ii) The area of the new allocated land in the resettlement place for

households or individuals must not exceed the quota for new residential land allocation provided by the locality.

(iii) The land price for calculating land use fees at the resettlement place

shall be decided by the Provincial People's Committee under the Government regulations on the methods of determining land prices and price frames of various kinds of land. The selling price of a resettlement house shall be decided by the Provincial People's Committee based on the single price unit of construction and the actuality at the locality. The house-leasing price shall be decided by the Provincial People's Committee to be appropriate with the actual situations in the locality.

(iv) Any household or individual who is allocated land or is eligible for a

house purchase or house lease in the resettlement place must pay the land use fees, house purchase fee, house lease rent under regulations of law and this amount shall be deducted from the money for compensation or assistance. If there is any difference, that difference shall be paid in cash as stipulated.

(v) Any organization that is assigned the task of managing a resettlement

area and arranging for resettlement has the responsibility to collect land use fees or house purchase fees from the person who is entitled to the arrangement for resettlement.

o Measures to be taken to assist production and life in resettlement areas

are prescribed in item 1 Article 36 Decree No 197/2004/ND-CP These measures include support in terms of seeds for the first crop of agricultural production, support of services in agricultural and forestry encouragement, plant protection, services, cultivation and animal husbandry techniques and supports in terms of professional skills in industrial and trading business and production. Then, depending on the actual situations at the locality, the Chairman of the Provincial People's Committee shall provide forms of support in cash or materials to be appropriate.

o Article 37. Rights and obligations of land-recovered people who have to move their residences Rights are as follows: (i) To be entitled to residential registration documents in resettlement

areas.

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(ii) To be given priority in residential registration for themselves and for

other members of their families at new dwelling places and to be given priority in the shifting of schooling for family members who are of school age.

(iii) To be entitled to refuse to move into any resettlement area that fails to

meet the publicly informed and posted-up conditions. (iv) To be supplied with house design models free of charge. Obligations are as follows: (i) To implement movement into the resettlement areas following the

exact time specified under regulations of competent State agencies. (ii) To build houses and structures strictly in conformity with planning and

carry out other obligations under regulations of law. (iii) To pay for house purchase, or land use fees under stipulations of the

Law. o Resettlement for special projects (Art. 38)

The Prime Minister shall make a decision, or submit it to the Government for decision, regarding special resettlement policies, with the highest rates of support which cover all expenditures for the setting up of a new resettlement area, building of houses, restoration of rice fields, the construction of socio-economic infrastructure, assisting the stabilization of production and life and other means of assistance depending on each specific case in any cases of special projects decided by the Government or the National Assembly, which require all the people of a community to vacate, and which influence the whole community's life, socio-economic, cultural and other traditional aspects.

o Article 39. Entrusting the task of compensation, assistance and settlement

(i) Given the actual situations at the locality, the Provincial People's

Committee shall entrust the implementation of compensation, assistance, and resettlement to:

(a) The Compensation, Assistance and Resettlement Board of a

district, town or city under Provincial control (generally referred to as district level).

(b) The Land Bank Development Organization.

(ii) The Compensation, Assistance and Resettlement Board at district level will be chaired by the Leader of the People’s Committee and members will include:

(a) Representative of Finance Department – Deputy Chairman of

the Board. (b) Project developer – Standing member.

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(c) Representative of Natural Resources and Environment

Department – Member. (d) Representative of the Commune People’s Committee where

the land is recovered – Member. (e) From one to two representatives of land-recovered

households. (f) A number of other members to be decided by the Chairman of

the Compensation and Resettlement Board in accordance with the actual situations of the localities.

o Responsibilities of the Compensation, Assistance and Resettlement

Board (Art.40)

(i) The Compensation and Resettlement Board assists the People’s Committees of the same level to devise and implement schemes of compensation, assistance and arrangement of resettlement. The Board works on the principle of collectivity and decisions will be made by majority of votes and in any case of equal votes, the half with the vote of the Chairman of the Council will prevail.

(ii) Responsibilities of the members of the Board:

(a) The chairman of the Board instructs members in the Board to

devise submit for approval and implement the schemes for compensation, assistance, and resettlement arrangement.

(b) Project developers have responsibilities to help the Board’s

chairman devise schemes for compensation, assistance and resettlement arrangement; ensure sufficient expenditure to timely pay compensation money, assistance and resettlement.

(c) Representatives of land-recovered people have responsibilities

to reflect the aspirations of land-recovered people and people who have to move their residence, and to encourage land-recovered people to implement the removal, site clearance at the correct rate.

(d) Other members execute tasks under the assignment and

instruction of the Board’s chairman in accordance with responsibilities of their own department.

(iii) The Compensation and Resettlement Board is responsible for the

accuracy, sensibility of the statistics and figures, the legitimacy of land and properties eligible for compensation, assistance or ineligible for compensation, assistance in the Schemes for compensation, assistance, and resettlement.

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o Appraisal of the implementation of compensation, assistance and resettlement arrangement of projects (Art. 41)

(i) Appraisal is made for the scheme of compensation, assistance and

resettlement for the following cases:

(a) Land-recovery projects which involve land from 2 or more districts, towns, communes or cities under central control.

(b) Projects whose schemes for compensation, assistance and

resettlement are approved by the Provincial People’s Committee.

(ii) The contents of the appraisal include:

(a) The application of policies on compensation and assistance of

the projects; (b) The application of land prices and property prices to calculate

compensation. (c) Schemes for arranging resettlement.

(iii) The appraisal of the implementation of compensation, assistance and

resettlement arrangements will be chaired by the Department of Finance working in collaboration with relevant agencies in accordance with characteristics of each project. If necessary, the Provincial People's Committee shall establish Appraisal Board chaired by the Manager of the Department of Finance.

(iv) The maximum time allowed for the appraisal is 15 working days,

counting from the day of receiving the proposal for the scheme appraisal for compensation, assistance, and resettlement of the project. If there is no opinion from the appraisal agency after the above-mentioned deadline, the Chairman of the People’s Committee at a competent level shall approve the scheme.

(v) Any schemes on compensation, assistance and resettlement for

projects that do not fall within regulations in item 1 of this Article do not have to be appraised.

(vi) After receiving recommendations from the appraisal agency, project

developers will help the Compensation, Assistance and Resettlement Board to complete the compensation, assistance and resettlement scheme to be submitted to competent State agencies for approval.

o Negotiations of compensation, assistance (Art, 42) Either persons who are allocated or leased land or the Land Bank Development Organization can negotiate with people from whom land is recovered about the rate of compensation, assistance under regulations in this Decree and any negotiated rate will be implemented accordingly. In such cases the State shall not organize or implement compensation and assistance.

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o Responsibilities of the organization entrusted with the implementation of compensation, assistance and resettlement (Art. 45)

(i) Devise schemes for compensation, assistance and resettlement;

implementation of compensation, assistance and resettlement to submit to competent levels for approval under stipulations of the Provincial People’s Committee, and be responsible for the accuracy, appropriation in the policies of the schemes for compensation, assistance and resettlement.

(ii) Guide, elucidate and answer land users’ complaints about matters

relating to compensation, assistance and resettlement. (iii) Other tasks under regulations of law stipulated by the People’s

Committee of a province or city under Central control.

o Article 47. Coercion of implementation of decision on land recovery and

site clearance

(i) People’s Committees at various levels in collaboration with socio-political organizations, mass organizations are to encourage people from whom land is recovered to voluntarily comply with the decisions on land recovery and site clearance. In any case where regulations on compensation, assistance and resettlement have been correctly implemented, but the persons from whom the land is recovered deliberately refuse to comply with the land recovery decision, the agency that makes the decision on land recovery may issue a coercive decision and implement the coercion under the provisions of the law.

(ii) Given the actual situations at localities, the Provincial People's

Committee shall assign levels or authorize the district People’s Committee to issue a coercive decision and implement the coercion.

o Expenses for the implementation of compensation, assistance, resettlement (Art. 48)

(i) The organization which is in charge of implementing compensation,

assistance and resettlement has the responsibility to estimate expenses for this task of each projects as follows:

(a) In the case of any expense for which an estimated rate,

standards and unit price provided by a competent State agency already exists, the implementation will be in accordance with current regulations.

(b) In the case of any expense that has not had or does not have

an estimated rate, standards or unit price, an actual estimate is to be made in conformity with the characteristics of each project and the actual situations at each locality.

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(c) Expenses of document printing, stationery, petrol, logistics and other expenses serving the machinery of management will be calculated according to the actual demands of each project.

(ii) No more than 2% of the total expenses for compensation, assistance

of the project will be deducted to meet the expenses of ensuring the implementation of compensation, assistance and resettlement. The specific rates shall be decided by the Provincial People’s Committee to be appropriate with the actual situations at the locality and depending on the scale, characteristics and nature of each kind of project, spending, payment, drawing a balance sheet shall be implemented under regulations of law.

o Complaining and handling of complaints (Art.49)

If any person from whom land has been recovered does not agree with the decision on compensation, assistance and resettlement, he or she has the right to make complaints under the provisions of law. The responsibilities to handle complaints, the time validity for complaints and the order to handle complaints are to be implemented under provisions in Article 138 of the Land Law 2003 and Article 162, 163, 164 Government’s Decree No 181/2004/ND-Cp dated 29 October 2004 on the implementation of the Land Law. While waiting for their complaints to be handled, complainants are required to comply with the decision on land recovery and to hand over the land strictly according to schedule and time decided by competent State agencies.

• Circular 116/2004/TT-BTC of The Ministry of Finance The Circular guides the implementation of the Government’s Decree No. 197/2004/ND-CP dated 03 December 2004 on Compensation, Assistance and Resettlement when the State recovers land.

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Annex 15: Notes on Consultant’s visit to Resettlement Area of A Vuong Hydropower Project

Brief Background on the Relocating Community – Ma Cooih. 1. Villagers from Ma Cooih commune, part of Dong Giang district, will be relocated as a consequence of building the A Vuong hydropower project. It includes five villages (A Giang, A Den, A Xo, Tro Gung, Ta Seng) of which four will move – A Xo village does not need to relocate. The most remote village is A Giang which is 11 km from the main road. 2. Relocation involves 315 households (HH) with 1,421 inhabitants, almost of them from the Ca Tu ethnic minority group. Since 2002, 34 HHs of Kinh people, who were living in Thanh nien lap Nghiep village from Quang Ngai Province, also came to live in this commune. They have come here as part of a new economy strategy campaign. Therefore, total population of this commune is 1,539 people. The poverty rate is about 30% including 104 poor HHs with 524 inhabitants. There are 25 HHs reported to suffer from insufficient food and about 15 HHs reported as better off. 3. The culture and socio-economic conditions of inhabitants in Ma Cooih commune are almost the same as Zuoih commune. They live in cottage style houses on stilts surrounded by forest. They cultivate the surrounding hills based on a shifting cultivation life style. Their main income is from wet rice cultivation (about 1000 m2 per HH in general). Besides this, they cultivate maize, manioc, and dry rice and trees on the hill slopes (2 hectares of forest per HH). The main tree being cultivated in the forest areas is cinnamon tree (as part of an afforestation contract from the Forestry Department for the past 5 -10years). Other important sources of income are from breeding cows, buffalo, chicken, and fish (they sell approximately half of this for cash and the rest is used in their HHs). 4. They also exploit products and animals from forest like animal trapping, harvesting forest products like rattan, young bamboo and other herbal leaves, honey and trees. They indicated though that these products are now limited. Before 2000, they used to catch fish along the stream to sell and feed themselves, but the construction of the hydropower project and sand exploitation for construction has so diminished fish populations that they now have fish in the market. Their average income per year is 3 million VND. Resettlement Area of A Vuong Hydropower Project 5. The resettlement Area of A Vuong hydropower project included three areas (near the main road) for about 300 HHs. Site clearance has been carried out and construction of houses, schools and health centers is underway. Houses are laid out on a grid arrangement. The total area for each HHs is 400m2, of which area for house is 42 m2 with inside area for living of 35 m2. Next to the houses are kitchens, bathrooms and toilet (19 m2 in total). The houses are rendered concrete block construction raised on concrete columns – it is about 1.8m from the ground to house floor level. Roofs are made of corrugated iron sheets. Each HH received 200 m2 for wet rice cultivating and about 1 to 1.5 ha forest land. Infrastructure such as electricity, water, school, health center and commune house will be provided for inhabitants in the resettlement area. 6. The overall impression is that the layout represents more of an urban rather than traditional rural environment with very high housing density, approximately six meters between houses. All HHs receive the same floor area, and so HHs with larger families will be constrained to live in cramped conditions. The Consultants were informed by HPPMB3 that those to be relocated selected the type of housing from a number of alternatives including traditional wood and thatched houses.

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7. The area is sloping with considerable earth movements required to provide flat building plots. The natural surroundings and scenery has been considerably disturbed in the process with topsoil removed. People here are clearly not familiar with the changes to their new living environment, living close to each other, with little room for house gardens and concerns about the heat of the summer where no shade currently exists from trees. 8. Though this project has a plan to improve their livelihoods, the people met during the visit raised concerns about their future income sources and the loss of forest land to cultivate industrial trees such as cinnamon tree (each cinnamon tree will be compensated by cash payment of 150,000 VND, while if this tree could be harvested, they would earn triple this amount). Cultivable land will also be more limited – each HH used to have from 2 to 3 hectares of land but now they will have a half of this area and there are concerns about the quality of land for agriculture, especially the land for new wetland rice. 9. Due to the high density of housing in the new area, cattle breeding cannot develop as there are no grass fields for cows and buffalo and people are not allowed bring their cattle into the forest. Job creation is difficult because education levels are low and Ca Tu people do not have experience or tendency to manage small businesses, unlike the Kinh people. Their expectation is to learn carpentry, but as the government prevents exploiting forests then this work is no more available to them. 10. The PAPs were asked to provide their opinions about the resettlement area program. The Head of the commune said that “ 50% of HHs want to have house with ground floor but the provincial government guide was to build house on stilts. Some of people from the affected villages came to visit the resettlement sites but they did not want to move there – their impression is that it should be a tourist village instead. They themselves want to build their own houses on hill slopes with forest surrounded them, and requested that the project should support them to build their new houses. 11. The biggest loss is to their traditional living culture. Ca Tu people living in a pre-social class, cultural spatial, and therefore they only know about village customs, rules and regulations. Until now, relations between commune authority and head of village defines community relationship and their culture, socio-economic and life style. However, the gathering of a big group of people living in a spatially restricted area and near the main road will significantly disrupt this pre-social class. On one hand, living with Kinh people will create favorable opportunities for using infrastructure like electricity, water, health center, easy transport and commercial exchange. On the other hand, these conditions will lead to a loss of the physical and nonphysical culture of the people. For example, moving the community house (Guoih house) will be a break with their architectural style and identity that goes back a long time. Traditional customs are not to move villages or tombs and the result of doing so is for community relationships and family relationships to be changed and ties broken. Moreover, mixed living with the Kinh people will gradually diminish their customs like weaving cloth products, undertaking customs for weddings and funerals, folk songs and their own musical instruments. In their place will be access to factory made clothes, television with modern entertainment programs and karaoke bars, such as those near commune People's Committee. 12. Some benefits will come, but there are also significant threats to the traditional way of life and cultural value systems. In addition, there will be an influx of a large number of workers for the project (approximately 1000 workers included drivers and servers for the construction) who will introduce risks to the environment, to health and particularly raise health issues like STDs, HIV/AIDS, and other social evils like trafficking in women and children, gambling and alcohol. These risks will be more serious when the border crossing with Lao is opened and goods traffic increases. All of these issues need to be addressed in

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order to find a locally appropriate solution for maintaining the living conditions of PAPs and also maintaining the character and culture of the ethnic minority group.

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Annex 16: Summary of Mission Schedules The following meeting schedules provide an indication of the mission activities. Timings are ‘as requested’ and do not necessarily reflect the final arrangements. Mission 1 Meeting Schedule: January 11-January 26th Hanoi Meetings

Date/Time Meeting Agency/Venue Tuesday, 11 January 8:30 –9:30 Pieter Smidt VRM

9:30 –11:00 Colin Steley Hasan Moninuddin Des Cleary

VRM 7th Floor, 23 Phan Chu Trinh St. Tel: 9 343374

14:00 – 15:30 Courtesy Visit to Mr. Lam Du Son Ms Le Thi Ngoc Quynh Environmental Specialist

EVN 18 Tran Nguyen Han St. Tel: 9 344 371

16:00 –17:00 Mr. Anders Hiort National Hydropower Plan 3 Thai Ha St. Tel: 7 343 641

Wednesday, 12 Jan 8:30 –9:30 Dr. Mai Thanh Dung

Deputy Director MoNRE Environmental Impact Assessment Division 83 Nguyen Chi Thanh Tel: 7 334 247/0912065854

9:00 –10:00 Mr. Bui Ngoc Tuan MoNRE Land Admin and Natural Resources 83 Nguyen Chi Thanh Tel: 7 734239/0913238259

10:15 – 11:00 Mr. Nguyen Thai Lai Director General

Department of Water resources Management 51 Quang Trung St. Tel: 0913009882/9437 080

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Date/Time Meeting Agency/Venue 11:15-12:00 Mr. Hoang Duong Tung

Director Center for Environmental Monitoring, Data and Info 39 Tran Hung Dao Tel: 9 439 781/ 0903421197

14:00 –15:00 (confirmed)

Mr. Pham Xuan Su Director

Water Resources Management Dept. 2 NGoc Ha St.

15:00 –16:00

Mr. Nguyen Ngoc Binh Director

Department for Forestry 2 NGoc Ha St. Tel: 8 438 689/0903 436 367

16:15 –17:15 Mr. Poul-Erik Frederisken DANIDA Water Sector Program 2 Ngoc Ha St.

Thursday, 6 January 8:30 –9:30 Mr. Makoto Uchida

Representative JBIC 63 Ly Thai To St.

9:30-10:30 Mr. Philip Brylski Social and Environment Coordinator

World Bank 63 Ly Thai To St

10:30 –11:30 Mr. Laurent Msellati Social Sector Coordinator

World Bank 63 Ly Thai To St

13:30 –14:30 ( can not meet)

Mr. Tran Minh Hien Vietnam Country Director

WWF 40 Cat Linh

15:00 –16:00 (confirmed)

Mr. Dan Rocovits Managing Director

WVF 76 Hang Trong

Friday, 14 Jan 8:30 – 9:30 (confirmed)

Ms. Dao Thi Viet Nga International River Network

VRM

10:00 –11:00 Mr. Ta Van Huong Director

MOI Energy and Petroleum Department 54 Hai Ba Trung St.

13:30 –14:30 Ms. Vu Thi Hoa IUCN 44/4 Van Bao St.

15:00 –16:00 (confirmed)

Mr. Jack Tordoff Birdlife International

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Quang Nam /Danang Meetings

Date/Time Location Meeting Participants Purpose of Meeting Mission Members

HPPMB 3 and PECC 3 Monday, January 17th; 0900h

Danang (HPPMB3 office)

• Director HPPMB3 • Mr. Khai Deputy Director

of PECC 3 • Ms. Truc, Head of

Environment Division of PECC 3

The mission will work with HPPMB 3 to confirm the basic purpose and approach to completing the SSTA. The mission will request from the Director: • a mission meeting schedule (revisions can be made

during this meeting if appropriate) • the names of HPPMB 3 staff that will assist the

consultants with co-ordination and administrative tasks during the mission;

• information on office space for the mission; • an overview of current and planned hydropower

development in Quang Nam; and • the contribution of HPPMB3 in water resources

management in Quang Nam.

Pradeep Perera Bob Everitt Jeremy Bird Jay Roop Be Quynh Nga

Monday January 17th; 1000h

Danang (HPPMB3 office

• HPPMB3 Staff assigned to Song Bung 4

• Ms. Truc, Head of Environment Division of PECC 3

• Mr. Khai Deputy Director of PECC 3

The mission will spend the remainder of the morning discussing a number of water resource management, social, and environmental issues related to hydropower development (e.g. scope of impacts, HPPMBs technical and institutional to addressing those impacts) with relevant HPPMB 3 and PECC 3 staff members. At this meeting the mission would like to receive: • three A0-sized maps showing the proposed impact

area of the Song Bung project • Three A3 – sized maps of Quang Nam province and all

current and proposed hydropower projects • Advice on progress to completing FS report of Song

Bung 4 • Advice on progress to completing EIA report of Song

Bung 4 • Advice on progress to completing RAP report of Song

Bung 4


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Monday January 17th; 1330h


Informal meetings and working in HPPMB 3 office

Mission will work independently in HPPMB 3 office. The mission may request informal meetings and support by relevant HPPMB 3 and/or PECC 3 staff.


Tuesday January 18th, 0830h


Informal meetings and working in office

Mission will work independently in HPPMB 3 office. The mission may request informal meetings and support by relevant HPPMB 3 staff.

Bob Everitt Jeremy Bird Jay Roop Be Quynh Nga

8. QUANG NAM PROVINCIAL-LEVEL AGENCIES Tuesday January 18th, 1530h

Tam Ky (Quang Nam PC)

• Quang Nam People’s Committee: appropriate-level PC representative

• DoNRE • DARD • Dept of Culture and

Information • Department of National

Defence

This is a brief ‘courtesy meeting’ to: 1) inform key department directors on the purpose and objectives of the mission; 2) request the co-operation and support of their departments during the mission; and 3) receive any relevant comments or questions presented by meeting participants.


Wednesday January 19th, 0830h

Tam Ky (DARD)

DARD: DARD representatives with expertise in: • Forestry • Agriculture and Rural

Development • Planning, and • Water resource

management

The mission would like to learn about DARD’s organizational structure and departmental responsibilities as they relate to developing hydropower schemes in Quang Nam province. Example topics include: • DARD’s contribution to water resource planning and

management in Quang Nam province. The mission is particularly interested in learning about the role of DARD in planning for water resources for multiple and/or conflicting uses (e.g. hydropower and irrigation)

• DARD’s contribution to managing forests and re-forestation programs in Quang Nam province. The mission is particularly interested in learning if DARD has any experience in supporting ‘compensatory forestry’ for areas of Quang Nam province that have been flooded in order to build water reservoirs.


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• DARD’s contribution to identifying and managing agriculture impacts created by building and operating water reservoirs (both in the reservoir area and downstream of the reservoir).

• DARD’s responsibility for managing proposed and existing protected areas in Quang Nam province.

• DARD’s participation and experiences with River Basin Organizations in Quang Nam province.

The mission would be grateful if DARD can provide the mission: 1) an organizational chart of each division participating in the meeting; and 2) a province-level maps of current and proposed protected areas in Quang Nam province.

Wednesday January 19th, :00h

Tam Ky (DoNRE)

DoNRE: Representatives with expertise in: • Environmental

Management • Forest Protection • Hydro-Meteorological • Land Administration • Water resource

management responsibility

The mission would like to learn about MoNRE’s organizational structure and departmental responsibilities for contributing to the development of hydropower schemes in Quang Nam province. Example topics include: • DoNRE’s contribution to the environmental review and

assessment process of hydropower schemes (please use previous hydropower examples when possible).

• DoNRE’s contribution to water resource planning and management in Quang Nam province. The mission is particularly interested in learning about the role of DoNRE in planning water resources for hydropower schemes.

• DoNRE’s contribution to managing land administration processes for developing hydropower schemes (please use previous hydropower examples when possible).

• DoNRE’s participation and experiences with River Basin Organizations in Quang Nam province.

• The mission would be grateful if DoNRE can provide an organizational chart of each division participating in the meeting.


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Thursday January 20th, 0830h

Tam Ky (DoCI)

Dept of Culture and Information: • Director or designate

(brief introduction only) and

• Representative from Cultural and Historic Sites Division

The mission would like to learn about DOCI’s organizational structure and departmental responsibilities for contributing to the development of hydropower schemes in Quang Nam province. Example topics include: • DOCI’s contribution to identifying and managing the

preservation of cultural and historic sites. • The mission is especially interested in learning how

DOCI works with development agencies (e.g. EVN) to manage the preservation of cultural and historic sites when those sites may be significantly affected by the agency’s development proposal (example of development proposal – building a large reservoir in or near cultural or historic sites.

The mission would be grateful if DoNRE can provide an organizational chart of each participating division.


Thursday January 20th 10:00h

Tam Ky (DND)

Department of National Defence: • Leader or representative

with knowledge in the following areas: o clearing of UXOs o remediating herbicides

from contaminated soils

The mission would like to learn about DND’s departmental responsibilities for contributing to the development of hydropower schemes in Quang Nam province. Example topics include: • Managing the identification and clearing of UXOs • Providing security and/or labor services when

constructing and operating hydropower schemes


Thursday January 20th, 14:00h

Tam Ky (DoLISA)

DOLISA Director or designate

Mission team members would like to learn about DOLISA’s departmental responsibilities in supporting involuntary resettlement programs.

Be Quynh Nga


Tam Ky (EMC) Ethnic Minority Committee members

Mission team members would like to learn about EMCs authorities and responsibilities for ethnic minority people in Quang Nam province.

Jeremy Bird Be Quynh Nga

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Tam Ky (Office of Management Board for Sonh Thanh Nature Conservation Area)

Management Board members

Mission team member would like to learn about the organizational structure, duties, and functions of the Management Board for the Sonh Thanh Nature Conservation Area.

Bob Everitt Jay Roop

Nam Giang District Level Meetings Friday January 21st, 1400h

Thanh My town (Nam Giang PC)

District People’s Committee representatives who are responsible for the following areas: • Water resources

management • Involuntary resettlement • Forest management • Land administration • Environmental

Protection • Ethnic Minority People

In addition, the following may be invited: • District-level Farmer’s

Union • District-level Women’s

Union

The mission will provide: 1) a brief summary of the mission and its interest in Song Bung 4; 2) request the co-operation and support of the district during their visit to Nam Giang, and 3) receive any relevant comments or questions presented by meeting participants.


Zuoih Commune Level Meetings Saturday January 22nd 1400h

Zuoih commune (Zuoih PC)

• PC Chairman (or designate)

• Hamlet Leaders • Commune-level

Farmer’s Union • Commune-level

The mission will provide: 1) a brief summary of the SSTA and its interest in Song Bung 4; 2) request the co-operation and support of the commune during the mission’s visit to Zuoih, and 3) receive any relevant comments or questions presented by meeting participants.

Jeremy Bird Jay Roop Be Quynh Nga

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Women’s Union The mission will request the PC to provide: • Social data of project affected villages (numbers of

people in village, numbers of ethnic minority people, income levels, etc)

• Information on social infrastructure (health clinics, schools, roads, water supply etc)

• Information on management of forest land and water resources within the commune boundaries

Sunday January 23rd Zuoih commune (field trip to five hamlets of Zuoih commune)

Informal visit and discussion with hamlet leader and selected households

The mission will visit project-affected hamlets to gain first-hand knowledge on the social, environmental, and water resources character of hamlets. These visits will be informal and it is hoped that the mission’s members can meet village leaders and households.

Jay Roop Be Quynh Nga

Monday January 24th Zuoih commune (continued field trip to five hamlets of Zuoih commune)

Informal visit and discussion with hamlet leader and selected households

The mission will visit project-affected hamlets to gain first-hand knowledge on the social, environmental, and water resources character of hamlets. These visits will be informal and it is hoped that the mission’s members can meet village leaders and households.

Jay Roop Be Quynh Nga

Field Trip to Downstream Impact Areas Tuesday January 25th Communes that

may receive downstream impacts

Some Nam Giang District PC members may be requested to attend field trip

The mission will travel via walking and 4WD to a number of pre-determined downstream site locations in order to observe social and environmental character of potentially impacted downstream areas. The exact locations will be selected in consultation with HPPMB 3 and other relevant agencies.

Be Quynh Nga

Tuesday January 25th

or Thursday January 27th

Sonh Thanh Nature Conservation Area

To Be Announced Mission plans a field trip to Sonh Thanh Nature Conservation Area.

Jay Roop

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Quang Nam Provincial Level Monday January 24th Tam Ky To Be Announced Jeremy Bird will advise later if assistance to set up

meetings is required. Jeremy Bird

Tuesday January 25th Tam Ky To Be Announced Jeremy Bird will advise later if assistance to set up meetings is required.

Jeremy Bird

Wednesday January 26th


• Director HPPMB3 • Other relevant HPPMB 3

staff

Closure meeting: • The mission members will summarize the mission

results. • The mission members will receive final comments and

questions by HPPMB 3 Director and relevant HPPMB 3 staff.

Jeremy Bird Jay Roop Be Quynh Nga

Mission 2 Meeting Schedule: February 17-18th Date/Time Location Meeting Participants Purpose of Meeting Mission Members

9. QUANG NAM Thursday February 17th


• Mr. Duy, HPPMB 3 • Prepare for Tam Ky Meetings • Debrief Results of Mission 1 • Initiate Mission 3 logistics (boats, accommodation, etc)

Jay Roop

Friday February 18th Danang (HPPMB3 office

• DARD • FPD • WWF

• Hold individual meetings with each agency; discuss the institutional arrangements for forest management in Quang Nam province.

Jay Roop

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Mission 3 Meeting Schedule: March 11-23rd

Date Agency/Location Mission Members97 Comments Danang Friday March 11 HPPMB 3 PP, MH, JB, Nga, JR Early Morning:

• Jay to meet with Duy, to go over meeting arrangements. • Jay to finalize landcruiser and translation arrangements. Noon: • All mission members will meet at DN airport, have lunch together to go over

logistics and meeting schedules. Sat March 12 – Sunday March 13

Nam Giang District Zouih commune, host communities

PP, MH, Nga HPPMB3 Co-ordination Activities – Zuoih Commune Arrange to visit Zuoih commune March 12th and March 13th: Parum B; Thon 2, and Pa Di. Purpose of the trip is to discuss the resettlement process and schedule for Song Bung 4 project. This meeting will be attended by two foreigners (Mrs. Marla Huddleston, Mr. Pradeep Perera) and one Vietnamese (Mrs. B.Q. Nga). Please make arrangements for them to overnight in Zuoih commune on March 12th.

Monday March 14 and

Tuesday March 15

Nam Giang (i) Downstream areas

Monday March 14: PP, MH, Nga, JR, JB Tuesday March 15: Nga, JR

HPPMB3 Co-ordination Activities – Nam Giang Arrange boats for downstream trip on Song Bung river as follows: • Day 1: Two boats meet us at Cau Ta Vin at 0830 (location km 26+888.3m on

HW 14 D: see photo). We will travel from Cau Ta Vin to Song Bung bridge. We will arrive at Song Bung bridge before dinner time;

• Day 2 One boat meets us at Song Bung Bridge at 0830. One boat travels from Song Bung Bridge to Dai Loc. We will arrive in Dai Loc before dinner. Please make sure there are good-quality life jackets for all the mission team members. We will bring our own food.

Purpose of trip is to: 1) estimate the numbers and types of downstream users; and 2) estimate the size and types of downstream ecological areas.

97 UM= Urooj Malik, Director, Mekong Infrastructure Division, ADB; PP = Pradeep Perera, Energy Specialist ADB; MH = Marla Huddleston, Resettlement Specialist, ADB; JB = Jeremy Bird

Senior Water Resources Consultant; Nga = Be Quynh Nga, Social Specialist; JR = Jay Roop, Environmental Specialist, blue = translator 1; yellow = translator 2.

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Date Agency/Location Mission Members97 Comments Tuesday March 15 Nam Giang –

District Offices PP, MH, JB HPPMB3 Co-ordination Activities – Nam Giang and Danang

• Morning: Arrange a meeting with Nam GIang District Authorities responsible for resettlement. Ms. Truc from PECC 3 will join.

• Afternoon: Marla meets Mr. Anh and Mr. Hon of HPPMB 3 in Danang in the afternoon. Ms. Truc from PECC 3 will join.

Purpose of meetings is to discuss resettlement process and schedule for Song Bung 4 project.

Wednesday March 16 Nam Giang – Song Thanh Nature Reserve

PP, JB, JR HPPMB3 Co-ordination Activities – Nam Giang Arrange to visit Song Thanh Nature Reserve. Our main interest is to visit the 221 hectare area of the Song Bung 4 Reservoir that impacts that Song Thanh Nature Reserve. We want to do this by motor cycle or walking. The purpose of the meeting with the Director is: • Receive any comments he has about the proposed 222 hectare impact area • Discuss with him the concept of expanding the Song Thanh Nature Reserve

Management Board to expand a watershed management board for Song Bung and Song Thanh watershed

Thursday March 17 Tam Ky • PPC Vice Chair • FPD • •

PP, JB, JR HPPMB3 Co-ordination Activities – Tam Ky Arrange one-hour meetings for the mission with • PPC Vice Chair for DoNRE / DARD: Mr. Le Minh Anh. Purpose of meeting is

to introduce issues related to integrated water resources management and the formation of a working group on water usage of the VGTB basin.

• Director of FPD: Purpose of meeting is: Follow up on potential for financing of elements of the Conservation Strategy and issues related to watershed management.

Friday March 18 Tam Ky • WWF • DoNRE •

PP, JB, JR HPPMB3 Co-ordination Activities – Tam Ky Morning Meetings Arrange one-hour meetings for the mission with • Mr. Barney Long, WWF. Purpose of meeting is: Follow up on potential for

financing of elements of the Conservation Strategy and WWF involvement in Phase 2 PPTA

• Director DoNRE (Duong Chi Cong) and the Chief of their Water Resources Management Section (Doan Van Thanh) to follow up in more detail on the proposal to form a working group for integrated water resources management.

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Date Agency/Location Mission Members97 Comments Friday March 18 Debrief, HPPMB3,

Da Nang PP, JB, JR, Nga HPPMB3 Responsibilities – Da Nang Afternoon Meeting

• Meeting time to start at 2 pm • Persons to meet:

o Mr. Hai o Mr. An o Mr. Hon o people at HPPMB 3 who are supposed to be operating the project after it is

commissioned o Power Dispatch ‘A3’ in Da Nang– Duy knows the contact person

• Purpose of meeting is (i) Brief HPPMB3 on relevant issues emerging from the

SSTA (ii) Review current status of resettlement discussions (iii) Discuss proposal for future computer modeling of the basin related to optimization of project and basin operation and impacts of flow changes downstream (iv) Discuss arrangements for additional EIA data collection (v) Follow-up on any logistical issues related to the field trip.

Monday March 21 Meetings in Hanoi as required

PP, JB, JR, Nga ADB VRM Responsibilities – Hanoi Please arrange the following meetings: • SWECO – Goran Lifwenborg – discuss progress of NHP Phase 3 in VGTB

basin. Location: SWECO Office • VRM – Brad Philips, Location: ADB VRM (morning or afternoon) • EVN – meet Mr. Toan or Ms. Quynh to debrief them on the information

collected to date. Location EVN. (morning or afternoon) • DWRM, DoNRE – meet Mr. Lai to receive update from him: 1) on the proposal

for an RBO in VGTB basin, 2) hydropower licensing guidelines and 3) consideration of modeling work. Location: Mr. Lai’s office in DoNRE. (morning or afternoon)

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Date Agency/Location Mission Members97 Comments Tuesday March 22 Meetings with

EVN VP in Hanoi UM, PP, MH, JB, JR, Nga EVN Responsibilities – Hanoi

Meeting chaired by EVN VP Son. a. Location: EVN. b. Participants: EVN will issue invitations c. The following is expected to occur at the meeting

• present the findings of the consultants and to highlight the policy gaps between EVN’s current practices and ADB requirements

• reach agreement on how to bridge these gaps and to ensure that EVN’s FS would not be finalized before ADB PPTA is finalized

d. At the end of the meeting an MOU will be signed and the draft PPTA Phase II paper would be given to EVN for comments

ADB VRM Responsibilities – Hanoi Meeting with other lending institutions and bilateral donors to present the general policy issues impacting on hydro power sector and to see how ADB can cooperate with them especially on water resource management issues.

Tuesday, March 23 Team wrap up meeting

PP, JB, JR, Nga Team meeting and any follow up meeting with EVN on the MOU.

187

Annex 17: Photographs

1 – Song Bung River

Day 1 – loading up

Song Bung – a few kilometers upstream of dam site

Boats emerging from the numerous rapids

Paddling downstream – (fish catch in tow)

Fish catch

Fish in restaurant

188

Typical view of rapids

Access road to SB4 damsite

Handling the boats though rapids

Boy fishing near Thon 2

Fishing boats traveling upstream

Dwelling on riverbank

189

Floating logs downstream (cut log hung under tyres)

Cows on bank of Song Bung

Vegetation on riverbank

Paddling out of rapids

One of many gold panning dredgers in Song Bung

Typical open reach of Song Bung

190

View of dam site from road

Power station construction site – A Vuong

Higher turbidity from Song Thanh near Nam Giang District Office

Downstream of Thanh My

Sand extraction for construction

Flood-level post in rice fields near Tam Ky

191

2 – Zuoih commune

View of surrounding hills from Zuoih

Housing at Thon2

Funeral procession – Thon 2

Entering Pa Dhi

Women outside house in Pa Dhi

Village group- Pa Dhi

192

Woman sifting through cassava seeds

Fish pond – Pa Dhi

Village meeting with Mission – Pa Dhi

Housing – Pa Dhi

Traditional house – Pa Rom Bi

Communal open area – Pa Rum B

193

Cong Don – water supply

Weaving in Cong Don

Road construction and erosion -

View of Song Bung from Thon 2 to Zuoih

Footbridge – to Pa Rum B from Zuoih

School – Zuoih commune

194

3 – Song Thanh Nature Reserve

Traditional house in Le Bo B – on edge of Reserve

Forest above Le Bo B

Undergrowth about 1 km into Reserve

Canopy about 1 km into Reserve

Forest Ranger – about 1 km above Le Bo B

Forest canopy

195

Logs on road to Nam Giang

Setup for sawing logs above Le Bo B

View across Nature Reserve –Cai River

Ta Vin River looking upstream

Ta Vin River – about 1km upstream of road bridge

Creeper on banks of Ta Vin river

196

4 – A Vuong resettlement site and construction areas

A Vuong resettlement site A Vuong resettlement housing under

construction

A Voung resettlement housing

A Vuong resettlement housing – kitchen and toilet

Construction road

Construction area above Song Bung

technical assistance consultant’s report · 11. translation of draft letter from song thang...

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