Nam Theun 2 Hydroelectric Project SOCIAL DEVELOPMENT PLAN: RESETTLEMENT ACTION PLAN - FINAL, October 2007 - Resettlement Action Plan (RAP) - Volume 1:General Information Resettlement Action Plan (RAP) - Volume 2: RAP1 - Kharnkeut District Resettlement Action Plan (RAP) - Volume 3: RAP2 - Nakai District Resettlement Action Plan (RAP) - Volume 4: RAP3 - Mahaxay and Gnommalath District, Khammouane Province Resettlement Action Plan (RAP) - Volume 5: RAP4 Roads - Resettlement Action Plan (RAP) - Volume 6: RAP5 -Transmission Lines NTPC Nam Tbeun 2 Power Company Ltd. Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 Transmission Lines LPA: 52, 53, 54, 55 October 2007 Document No. 3 I N C ( S I K : O lntcrnal T I P 410 3 0 4 1 0 0 0 0 0 6 1 ~ 1 I-' C'ontident~nl II'C propertyand shall not bc used.reproduced.transmlrtedand/or disclosed w~thoutprlor pcrmlsslon Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 .Transmission Lines October 2007 Table of Contents Page 1 Introduction ................................................................................................................... 3 1.1 Resettlement Action Plan 5 ......................................................................................3 1.1.1 Land Parcel Areas .............................................................................................3 1.2 Efforts to minimize resettlement/displacements ....................................................3 2 Compensation Policy and Scheme ...............................................................................5 2.1 Compensation Policy and Scheme ...........................................................................5 2.1.1 Permanent Loss .................................................................................................7 2.1.2 Temporary Impact ..........................................................................................10 2.1.3 Corridor Impact ..............................................................................................12 3 Project affected Household ........................................................................................14 3.1 Baseline ....................................................................................................................14 3.2 Consultation process ...............................................................................................14 3.3 Project Affected Households .................................................................................. 19 3.4 Impact and Mitigation measures ...........................................................................20 List of Tables Table 1.PAH list per LPA ..................................................................................................... 19 Table 2 Type of disturbance. the impact and social mitigation measures . ........................20 List of Figures Figure 1.Map of the Transmission Line .................................................................................4 Figure 2 Definition of Area for compensation . .......................................................................6 Figure 3 Compensation Flowchart . .........................................................................................7 Figure 4 Compensation consultation diagram . ....................................................................14 Figure 5 Compensation consultation discussion . .................................................................15 Figure 6 Flowchart of the Consultation Process (1) . ...........................................................16 Figure 7 Flowchart of the Consultation Process (2) . ...........................................................19 List of Annexes Annex 1 .Inventory of Loss for RAP 5 ..................................................................................21 NTPC-S-K04-0304-000006-A Page 2 of 69 Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 - Transmission Lines October 2007 Introduction 1.1 Resettlement Action Plan 5 The Social and Environmentalaspects of the Transmission Line falls within the responsibilityof the Project Lands office of NTPC. All activities regarding the relocation and compensation of PAHs within the impacted area of the Transmission Line are compiled under Resettlement Action Plan (RAP) 5. 1.1.1 Land Parcel Areas The transmission line covers an area of 139km from Gnommalath, where the power station is found, to the Mekong River at Kaysone, where the electricity is transported over to Thailand for redistribution and sale. The 115kV line runs 30 km whereas the 500 kV line runs the entire length of 139km. As seen in Figure 1,the entire transmission line crosses over two provinces, Khamrnouane and Savanakhet,through five districts namely Gnommalath,Mahaxai, Xe Bang Fai, Xaibouli and Kaysone. Overall 53 villages are affected by the transmission line and its associated construction activities 1.2 Efforts to minimize resettlement/displacements Efforts have been made to minimize the impact of Nam Theun 2 Project requirements. Modifications in design and land requirements have occurred since the design phase and an additional survey was conducted once the final details regarding buffer zone/ corridor size was determined. PAHs were consulted and informedabout the impacts and the compensationthat they would receive. NTPC-S-K04-0304-000006-A Page 3 of 69 Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 - Transmission Lines October 2007 Figure 1. Map of the Transmission Line NTPC-S-K04-0304-000006-A Page 4 of 69 Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5- TransmissionLines October 2007 2 Compensation Policy and Scheme 2.1 Compensation Policy and Scheme The compensationpolicy and schemeof RAP 5 generally follows the overall scheme found in RAP Volume 1 and is similarto that of RAP 3 but there are differences in land utilization. Crop productivityvalues are based on rates from each district and therefore compensation rates and final values differ between districts.Compensation is based on how the land is utilized and to what degree it is utilized, as seen in figure 2. NTPC-S-K04-0304-000006-A Page 5 of 69 Nam Theun 2 HydroelectricProiect Resettlement Action Plan 5 - Transmission Lines October 2007 I - Figure 2. ~efinitioiof Area forcompensation RAP 5 can be visualized as depicted in the following flowchart: NTPC-S-K04-0304-000006-A Page 6 of 69 Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 - Transmission Lines October 2007 e. New material (consistentwith old structure material) is provided f. Tools for constructionis provided to the PAH g. Labour and other related costs are provided to the PAH h. Disturbanceallowance at $15 USD per person (including the initial disturbance allowance) and 300,000 kip transitional assistanceper household is provided for the PAH. NTPC restores infrastructureto at least pre-project level. For example, if a house is electrified, NTPC will provide power points and electricity lines to the relocatedhouse.NTPC also restores all other peripheral infrastructure such as wells, animal pens, storage and shops. 2. Tree ProductivityCompensation As per the CA, PAHs are to be compensated for trees that are impacted by the project and the lost potential production of the tree. Cash compensationis provided for trees such as fruit trees and timber trees. a. Productivetrees: Tree productivity is calculatedusing six factors: Number and type of trees as identified during the initial baseline survey. Productivityof the type of tree as calculated by the DWG. This value is expressed as kilograms derived from the number of trees and the type of fruit it bears per year. As previously explained, each district could have a different value for productivity. In the case of trees, 2, 5 or 7 years productivityis used depending on the type of tree as growth and harvest cycles of trees are different and productivity can be restored to pre- project levels within 2,5 or 7 years. The market price as calculated at the prevailing market rate. The cost of seeds, as derived from the number of trees cut. The cost of maintenanceup to 7 years. Calculation depends on the type of tree, for example, bamboo ,maintenance costs are paid 5 years, banana palm for 2 years and mango trees for 7 years. The cost of clearingbush around the tree (as calculated per square meter between 6 and 10m2per tree). The followingformula is then utilized to determine cash compensation for tree production: Tree Production Value= [Productivity (kglyr) X market price (kiplkg) X 2,5 or 7 years] + [seed cost X # of trees] + [maintenance cost X # of trees X 2,5 or7 years] + [bushclearing cost X designated area around tree (mZ)] NTPC-S-K04-0304-000006-A Page 8 of 69 Nam Theun 2 HydroelectricProject Resettlement Action Plan 5 - TransmissionLines October 2007 b. Non-uroductive trees: Compensationfor non-productive trees is calculated using the following factors: The cost of seeds, as equal to the number of trees cut is calculated. This is determined by the DWG. The cost of maintenance as determined by the DWG. Bush clearing cost as estimated by NTPC and DWG. The age of the trees to be cut (as recorded in the baseline survey). Non-productive Tree Value [seed cost (kiplseed) X # of trees] + [maintenance cost (kip) X# of trees X age of tree (years)] + [bush clearing cost (kip) X area designated around tree (mZ)] 3. Land Value or Production Value PAHs have the option of obtaining cash compensation for either the value of the land or the production value of the land. The formula to determine the cash value is as follows: Land Value= Area (mZ)X price of land (kip/ mZ) The price of the land is estimated and provided by the Prime Minister's Office. The productivity of the land is calculated by the District Working Group (DWG). This value is expressed as kilograms per year. Each district could assign a different value to productivity depending on the rate of productivity within the given district. The price of the produce is also calculated at the prevailing market rate. With these factors in place, the following formula is utilized to determine cash compensation for land production: Production Value Area (mZ)X Productivity (kg/mz)X price of produce (kiplkg) X 7 years Cash compensation is based on the above calculation. NTPC-S-KO4-0304-000006-A Page 9 of 69 Nam Theun 2 HydroelectricProject Resettlement Action Plan 5 - TransmissionLines October 2007 2.1.2 Temporary Impact Temporary impacts are to be expected from the construction of access roads and building areas. These parcels of lands are not purchased by the project and are merely used during construction. There are three areas that experience temporary impacts. The first area is the piece of land immediately around the tower footing. The second is the path between the towers, and thirdly, the access roads to the towers to be constructed. Compensationfor temporarily impacted lands is as follows: 1. Infrastructurereplacement As described in 2.1.1, infrastructure replacement is consistent across all levels of-impactin RAP 5. 2. Land ProductionValue Formula Land production, for example, for paddy rice is calculated using the following factors: The total area affected is calculated by subtracting the area of permanently affected land from the area of remaining land surrounding the tower. Other affected land, such as that of the path to the next tower or access roads is also assessed. The productivity of the land is calculated by the District Working Group{DWG). This value is expressed as kilograms per year. Each district could assign a different value to productivity depending on the rate of productivity within the given district. Only two years is calculated into the equation which is the disturbance period of construction. Productivity is not calculated with regards to the growth and harvest cycle as rice is only affected temporarily and can be restored to pre-project levels immediately. The price of the produce is also calculated at the prevailing market rate. With these factors in place, the following formula is utilized to determine cash compensation for land production: Land Production Value = Area (m2)X productivity (kg/m2)X 2 years X price of produce (kiplkg) 3. Tree ProductivityCompensation As described above in 2.1.1, tree productivity calculations are consistent with compensation provided across all level of impacts in RAP 5. As per the CA, PAHs are to be compensated for trees that are impacted by the project and the lost potential production of the tree. Cash compensation is provided for trees such as fruit trees and timber trees. a. Productive trees: Tree productivity is calculated using six factors: Number and type of trees as identified during the initial baseline survey. NTPC-S-K04-0304-000006-A Page 10of69 Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 - Transmission Lines October 2007 Productivity of the type of tree as calculated by the DWG. This value is expressed as kilograms derived from the number of trees and the type of fruit it bears per year. As previously explained, each district could have a different value for productivity. In the case of trees, 2,5 or 7 years productivity is used depending on the type of tree as growth and harvest cycles of trees are different and productivity can be restored to pre- project levels within 2,5 or 7 years. The market price as calculated at the prevailing market rate. The cost of seeds, as derived from the number of trees cut. The cost of maintenance up to 7 years. Calculation depends on the type of tree, for example, bamboo, maintenance costs are paid 5 years, banana palm for 2 years and mango trees for 7 years. The cost of clearing bush around the tree (as calculatedper square meter between 6 and 10m2per tree). The following formula is then utilized to determine cash compensation for tree production: Tree Production Value= [Productivity (kglyr) X market price (kiplkg) X 2,5 or 7 years] + [seed cost X # of trees] + [maintenance cost X # of trees X 2,5 or7 years] + [bush clearing cost X designated area around tree (m2)] b. Non-productivetrees: Compensation for non-productive trees is calculated using the following factors: The cost of seeds, as equal to the number of trees cut is calculated. This is determined by the DWG. The cost of maintenance as determined by the DWG. Bush clearing cost as estimated by NTPC and DWG. The age of the trees to be cut (as recorded in the baseline survey). Non-productiveTree Value= [seed cost (kiplseed) X # of trees] + [maintenance cost (kip) X# of trees X age of tree (years)] + [bush clearing cost (kip) X area designated around tree (m2)] NTPC-S-K04-0304-000006-A Page 11 of 69 Nam Theun 2 HydroelectricProject ResettlementAction Plan 5 - TransmissionLines October 2007 2.1.3 Corridor Impact The comdor is the 40 meter buffer area on either side of the central line as depicted in Figure 2. This area is cleared of tall trees that would interfere with the transmission line. Infrastructureis also cleared within a 30 meter buffer zone from the central line on either side and PAHs are provided with replacement infrastructure elsewhere. All peripheral infrastructure that the PAH owns will also be replaced to pre-project levels at the new house location. Methods of compensationfor the comdor are as follows: 1. InfrastructureReplacement Infrastructurereplacement is consistent across all levels of impact in RAP 5. 2. Tree ProductivityCompensation Tree productivitycalculationis consistent with compensationprovided across all level of impacts in RAP 5. As per the CA, PAHs are to be compensated for trees that are impacted by the project and the lost potential production of the tree. Cash compensationis provided for trees such as fruit trees and timber trees. c. Productivetrees: Tree productivity is calculatedusing six factors: Number and type of trees as identified during the initial baseline survey. Productivity of the type of tree as calculated by the DWG. This value is expressed as kilograms derived from the number of trees and the type of fruit it bears per year. As previously explained, each district could have a different value for productivity. In the case of trees, 2, 5 or 7 years productivityis used depending on the type of tree as growth and harvest cycles of trees are different and productivity can be restored to pre- project levels within 2, 5 or 7 years. The market price as calculated at the prevailing market rate. The cost of seeds, as derived from the number of trees cut. The cost of maintenanceup to 7 years. Calculation depends on the type of tree, for example,bamboo ,maintenance costs are paid 5 years, banana palm for 2 years and mango trees for 7 years. The cost of clearingbush around the tree (as calculated per square meter between 6 and 10m2per tree). The followingformula is then utilized to determine cash compensation for tree production: NTPC-S-K04-0304-000006-A Page 12of 69 Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 - Transmission Lines October 2007 Tree Production Value= [Productivity (kglyr) X market price (kiplkg) X 2,s or 7 years] + [seed cost X # of trees] + [maintenance cost X # of trees X 2,s or7 years] + [bush clearing cost X designated area around tree (m2)] d. Non-productive trees: Compensation for non-productive trees is calculated using the following factors: The cost of seeds, as equal to the number of trees cut is calculated. This is determined by the DWG. The cost of maintenance as determined by the DWG. Bush clearing cost as estimated by NTPC and DWG. The age of the trees to be cut (as recorded in the baseline survey). Non-productive Tree Value= [seed cost (kiplseed) X # of trees] + [maintenance cost (kip) X# of trees X age of tree (years)] + [bush clearing cost (kip) X area designated around tree (m2)] NTPC-S-K04-0304-000006-A Page 13 of 69 Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 - TransmissionLines October 2007 3 Project affected Household 3.1 Baseline Baseline information was gathered to assess the extent of the impact and identify potential PAHs within the Transmission Line affected area. These data are derived frommeasurementsof whole plots and estimates of impacted areas Detailed design and tower locations were identified and provided to NTPC in June 2006. NTPC conducted a second assessment to identify actual impacts from the construction of the transmission line and PAHs. 3.2 Consultationprocess Followingthe baseline data gathering activity consultations were held with the PAHs. This activity was led by the District Working Group and the Village Chief. The DWG and the VillageChief,together with the PAH have verified the list of expected impact. Presentationswere conductedwithin the villages to fully explain the complicated compensation scheme for RAP 5. Figure 4. Compensationconsultationdiagram NTPC-S-K04-0304-000006-A Page 14of 69 Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 TransmissionLines - October 2007 Figure 5. Compensationconsultation discussion The consultation process is conducted systematically, as depicted in the flowchart below: NTPC-S-K04-0304-000006-A Page 15of 69 Nam Theun 2 HydroelectricProject Resettlement Action Plan 5 - Transmission Lines October 2007 Consultation Process (1) Tower Marker Coordinate Finalized IEC Information Dissemination by NTPC-PL Survey of Assets1 F~rstConsultation Calculationof Compensation (by RMUINTPC-PL) Cash Paymentto PAH by RMUIDWGINTPC u Figure6. Flowchartof the ConsultationProcess(1) NTPC-S-K04-0304-000006-A Page 16of 69 . Nam Theun 2 HydroelectricProject Resettlement Action Plan 5 - Transmission Lines October 2007 Consultation . Process(2) PAH receive compensation t PAHsatisfied PAH dissatisfied PAHfully PAH attends compensated consubtionand workshop IEC (NTPCRMUI 1 1 PAH was unclear Errori;nb;seline of compensation Data verification PAH satisfied by NTPCDWGI RMUNillageChief and PAH NTPC-S-K04-0304-000006-A /* Calculation of Compensation ansultation Nam Theun 2 HydroelectricProject Resettlement Action Plan 5 - Transmission Lines October 2007 3.4 Impact and Mitigation measures There are differenttypes of impacts expected fiom the construction of the transmission line towers. Disturbance Impact Social mitigationmeasures All fixed structuresto be moved From Fixed structures (buildings)must be Compensation for livelihood impacts within 12 mof 115kV centerline, 30m moved From Transmission Line of 500kV centerline, and crops, conidor plantations or forest cut. All fixed structures within 30m of Productiveassets or crops above 2 m Compensation for temporary or centerlinetobe moved and any or 3 m (depending on affected area permanent loss of land and assets vegetationhigher than 2 m is to be clasiffication) must be cut removed; crops and grazing will be allowed to continue; Small areas required for the footings of Forest over 2 m and 3m (depending on Cash compensation equal to replacement the towers. (between 16mX 16mto affected area classification) must be cut value for residential structures. For non- 20m X 20m) residential structure cash compensation to relocate structure. Some land will be disturbed during Small land areas required for footings Compensation for livelihood impacts constructionand stringing, but this is to will be acquired occur duringthe dry season to minimise impact on crops Potential for limited disturbancealong Some increase in heavy traffic along Compensation for temporary or permanent the access road alignments or along any the road loss of land and assets other access which may be required. dust Cash compensation equal to replacement value for residential structures. For non- residential structure cash compensation to relocate structure. Compensation for any unanticipated I livelihood impacts I I I Table 2. Type of disturbance, the impact and social mitigation measures NTPC-S-K04-0304-000006-A Page 20 of 69 Nam Theun 2 Hydroelectric Project Resettlement Action Plan 5 - Transmission Lines October 2007 Annex 1. Inventory of Loss for RAP 5 Final Compensationof the Transmission Line 115 & 500 KV for Gnommalath District (LPA52) Transmission Line 115 KV No Family ID Assets type Type affected Area(m2) Assets type Type affected Area(m2) % Impacted 11 Ban Kownephun I r 1 I KPHOQ I unproductive land I Temporary loss 500 1 unproductive l a n d 1 Permanent loss 1 80 1 4 0 % 1 Rainfed Rice Field Temporary loss 4 KPHOlO Rainfed rice field Temporary loss Permanent loss unproductive land Temporary loss I I Iunproductive land ( Temporary loss ( 250 1