SFG2428 REV SOUTH EAST ASIA DISASTER RISK MANAGEMENT (SEA DRM) PROJECT FOR LAO PDR RESETTLEMENT POLICY FRAMEWORK Prepared by: DEPARTMENT OF WATERWAYS MINISTRY OF PUBLIC WORKS AND TRANSPORT LANXANG AVENUE VIENTIANE, LAO PDR APRIL 2017 VERSION 5 TABLE OF CONTENTS LIST OF TABLES .............................................................................................ii LIST OF FIGURES ............................................................................................ii LIST OF APPENDICES ....................................................................................ii LIST OF ACRONYMS ......................................................................................iii TERMS AND DEFINITIONS .............................................................................v ACKNOWLEDGEMENTS ............................................................................. viii 1.0 PROJECT DESCRIPTION ......................................................................1 2.0 PRINCIPLES GOVERNING RESETTLEMENT ......................................3 3.0 RESETTLEMENT PROCESS AND APPROVAL ...................................4 4.0 CATEGORIES OF DISPLACED PERSONS ..........................................6 5.0 DISPLACED PERSONS ELIGIBILITY CRITERIA .................................7 6.0 LEGAL FRAMEWORK ASSESSMENT .................................................8 7.0 ASSET VALUATION ............................................................................ 14 8.0 ORGANIZATIONAL PROCEDURES FOR ENTITLEMENTS ............. 17 9.0 LINKING RESETTLEMENT TO CIVIL WORKS .................................. 23 10.0 GRIEVANCE REDRESS MECHANISM ............................................... 24 11.0 ARRANGEMENTS FOR FUNDING RESETTLEMENT ...................... 27 12.0 PARTICIPATORY CONSULTATIONS .................................................. 27 13.0 MONITORING AND REPORTING ....................................................... 28 14.0 VOLUNTARY LAND DONATION (VLD) FRAMEWORK ..................... 29 15.0 BUDGET TO IMPLEMENT THE RPF .................................................. 31 SEA DRM Project – Lao PDR i Resettlement Policy Framework LIST OF TABLES Table 1 Gap analysis between the World Bank Involuntary Resettlement Policy (OP/BP 4.12) and Lao PDR 2016 Decree on Compensation and Resettlement of People Affected by Development Projects. ...........................................................................................11 Table 2 Entitlement matrix. ......................................................................................................18 LIST OF FIGURES Figure 1 GRM process. .............................................................................................................26 LIST OF APPENDICES Appendix A1 Resettlement Plan Formats Appendix A2 Land Donation Protocols Appendix A3 Voluntary Land Donation Form SEA DRM Project – Lao PDR ii Resettlement Policy Framework LIST OF ACRONYMS ARAP Abbreviated Resettlement Action Plan CBO Community Based Organizations CSO Civil Society Organizations DIA Designated Implementing Agency DOW Department of Waterways DPWT Department of Public Works and Transport EGDP Ethnic Group Development Plan EGEF Ethnic Groups Engagement Framework EPL Environmental Protection Law ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FGD Focus Group Discussion GoL Government of Lao PDR GRC Grievance Redress Committee ICT Information and Communications Technology IDA International Development Association IEE Initial Environmental Examination LRSP-2 Lao Road Sector Project 2 M&E Monitoring and Evaluation MOF Ministry of Finance MONRE Ministry of Natural Resources and Environment MoICT Ministry of Information, Communication and Tourism MPI Ministry of Planning and Investment MPWT Ministry of Public Works and Transpiration NPA Non-Profit Associations OP/BP World Bank Operational Policies PAH Project Affected Households PAP Project Affected People PDoNRE Provincial Department of Natural Resources and Environment PDR People's Democratic Public PDO Project Development Objective PIU Project Implementation Unit PMU Project Management Unit PRO Project Resettlement Office RAP Resettlement Action Plan RPF Resettlement Policy Framework RoI Region of Influence SDS Social Development Specialist SEA South East Asia SEA DRM South East Asia Disaster Risk Management SIA Social Impact Assessment SEA DRM Project – Lao PDR iii Resettlement Policy Framework ToR Terms of Reference VRS Village Resettlement Sub-committees WB World Bank WBG World Bank Group SEA DRM Project – Lao PDR iv Resettlement Policy Framework TERMS AND DEFINITIONS Beneficiary – all persons and households from the villages who voluntarily seek to avail of and be part of the project. Compensation – payment in cash or in kind of the replacement cost of the acquired assets for the project. Cut-off Date – the date prior to which the occupation or use of the project area makes residents/users of the project area eligible to be categorized as affected persons. The cut-off date is established in the Resettlement Action Plan (RAP). It normally coincides with the date of the census of affected persons within the project area boundaries, or the date of public notification regarding the specific civil works that would cause displacement. Persons not covered in the census, because they were not residing, having assets, or deriving an income from the project area, are not eligible for compensation and other entitlements. Displaced persons – refers to all of the people who, on account of the activities listed above, would have their (1) standard of living adversely affected; or (2) right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed temporarily or permanently; (3) access to productive assets adversely affected, temporarily or permanently; or (4) business, occupation, work or place of residence or habitat adversely affected; and “displaced person” means any of the displaced persons, including those who have no legal recognizable right or claim to the land they are occupying. Eligible land holders – refers to affected persons who (a) hold title to land; or (b) do not hold title but whose possession of land can be legalized with a title pursuant to the Land Law of Lao People’s Democratic Republic (PDR) including those who have no legal recognizable right or claim to the land they are occupying, but who are nonetheless entitled to assistance to restore their living standards, livelihoods, and any land-affixed assets affected. Entitlement – range of measures comprising compensation, income restoration support, transfer assistance, income restoration, and relocation support which are due to affected people, depending on the nature of their losses, to restore their economic and social base. Household – means all persons living and eating together as a single social unit. Income restoration – means re-establishing income sources and livelihoods of Project Affected Households (PAH) to a minimum of the pre-project level. Improvements – structures constructed (dwelling unit, fence, waiting sheds, pig pens, utilities, community facilities, stores, warehouses, etc.) and crops/plants planted by the person, household, institution, or organization. Land acquisition – the process whereby a person involuntary loses ownership, use of, or access to, land as a result of the project. Land acquisition can lead to a range of associated impacts, including loss of residence or other fixed assets (fences, wells, tombs, or other structures or improvements that are attached to the land). SEA DRM Project – Lao PDR v Resettlement Policy Framework Project Authorities – refers to the Ministry of Public Works and Transport (MPWT), the Ministry of Planning and Investment (MPI), Ministry of Finance (MOF), Ministry of Natural Resources and Environment (MONRE) and Ministry of Information, Communication and Tourism (MoICT). Project Affected Persons (PAP) or Households (PAH) – includes any person, households, entity, organizations, 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, plantations, grazing, and/organizing land), water resources, fish ponds, communal fishing grounds, annual or perennial crops and trees, 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, permanently or temporarily, with or without displacement. Rehabilitation – refers to assistance provided to persons seriously affected due to the loss of productive assets, incomes, employment or sources of living, to supplement payment of compensation for acquired assets, in order to achieve, at a minimum, full restoration of living standards and quality of life. Compensation for assets often is not sufficient to achieve full rehabilitation. Replacement cost – is the method of valuation of assets which determines the amount of compensation sufficient to replace lost assets, including any necessary transaction costs. Compensation at replacement cost is defined as follows: For agricultural land, it is the pre-sub-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labor and contractors' fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Such additional assistance is distinct from resettlement measures to be provided under other clauses in World Bank Operational Policies (OP/BP) 4.12, Para. 6. Replacement Cost Study (RCS) - The main objective of the RCS is to determine the rate of land prices based on actual transaction records of the affected areas, of affected main and secondary1 structures and other immovable assets. This study would be conducted by an independent appraiser. Based on the results of RCS, the PAH will receive compensation at replacement cost (reflecting market price) from RoUM for their loss of land and property due to the sub-project. The RCS will be implemented during the DMS. 1 This includes fences, wells, toilets, kitchens, etc. SEA DRM Project – Lao PDR vi Resettlement Policy Framework Resettlement – means that all measures should be taken to mitigate any and all adverse impacts of a project on PAP property and/or livelihood’s, including compensation, relocation (where relevant) and rehabilitation as needed. Unit Costs for Lands - The affected private lands will most likely fall under the land categories of either residential or commercial lands. The way to obtain data on market rates is to gather data on recent land sales at/around the sub-project area. Methods for data collection include direct interviews (i) real estate agents in CBD, (ii) land owners at/around the sub-project area who are both PAHs and non-PAHs, and (iii) local authorities at/around the sub-project area. Per results of the RCS, the unit costs of land covered with recognized proofs of ownership, structures and other immovable assets are provided. Unit Costs for Structures - The houses/structures affected by the sub-project have been categorized into two main groups – house/dwelling and other structures. The methodology employed for costing house/structures includes a quantity survey and detailed measurement of the component parts of each structure and a determination of the market value of the house/dwelling. Other structures such as wells and fences, and cultural assets such as stupas, have to be compensated at their market price, and the results of the specific rates of structures are provided. Vulnerable Groups – are distinct groups of people who might suffer disproportionately or face the risk of being further marginalized by the effects of resettlement and specifically include: (i) households headed by women, the elderly or disabled; (ii) households living below the poverty threshold; (iii) the landless; and (iv) Indigenous Peoples (OP/BP 4.10), including ethnic groups. SEA DRM Project – Lao PDR vii Resettlement Policy Framework ACKNOWLEDGEMENTS This safeguards report was prepared in support of the proposed South East Asia Disaster Risk Management (SEA DRM) Project to be funded by the World Bank Group (WBG) through an International Development Association (IDA) loan to Lao People’s Democratic Republic (PDR), Cambodia, and Myanmar. The report was prepared by the Lao PDR Department of Waterways (DOW) under the direction of Mr. Hongla Sengmuang, Director General, Mr. Khamseng Aly, Deputy Director of Division, and Mr. Phimmasone Seng Soriyanong, Technical Staff. Technical assistance and support was provided to DOW by Mr. Jim Hamilton, Ms. Derin Henderson, Mr. Vongphet Soukhavongsa, Mr. Ananh Xaiyavong, Mr. Jim Webb and Mr. Grant Bruce from Hatfield Consultants Mekong. The authors would like to thank the World Bank Group for their support and, in particular, Dr. Henrike Brecht, Task Team Leader, Mr. Sybounheung Phananouvong, Social Safeguard Specialist and Mr. Peter Crawford, Environmental Safeguard Specialist. The authors would also like to thank the government of Lao PDR staff including the Deputy District Governor of Xay District in Oudomxay Province who made time for consultations and the village representatives in Ban Nasao and Ban Nalao who provided comments and feedback on the potential impacts of the proposed sub-projects. SEA DRM Project – Lao PDR viii Resettlement Policy Framework 1.0 PROJECT DESCRIPTION The goal of the proposed World Bank Group (WBG) funded South East Asia Disaster Risk Management (SEA DRM) Project is to reduce the risk of flooding and enhance disaster risk financing capacity within the Lower Mekong Sub-region. The proposed SEA DRM Project will be funded by the WBG through an International Development Association (IDA) loan in three South East Asia (SEA) countries – namely, Lao PDR, Cambodia, and Myanmar. The project will allow these aforementioned riparian countries to achieve and expand outcomes in three key areas, including flood risk management investments, disaster risk assessment and financing, and a zero-balance contingent emergency response component. The overall tripartite country SEA DRM Project objective is “to promote and harmonize disaster risk management at the regional level”. Each of the three SEA countries have developed a number of sub - projects which will be subject to further assessment and consideration for funding purposes. The Lao PDR country-specific DRM Project Development Objective (PDO) is “to help reduce the risk of flooding and enhance disaster risk financing capacity within the Mekong region”. The Lao PDR DRM Project is comprised of the following five components: Component 1: Urban Flood Risk Management This component includes a set of structural and non-structural investments designed to strengthen flood resilience in Oudomxay Province, particularly, for the provincial capital of Muang Xay and areas in close proximity. Urban flood risk management infrastructure investments proposed for Oudomxay’s provincial capital and proximity include financing for riverbank protection, dike, drainage canal, flood gates, weir and riverside parks. Such infrastructure will protect the urban core from flash floods that occur regularly during the rainy season. The designated implementing agency (DIA) for this sub-project will be the Department of Waterways (DOW) under the MPWT. Component 2: Hydromet Modernization and Disaster Risk Management Systems This component includes financing for capacity building measures to enhance and strengthen forecasting, early warning and disaster risk management systems in the MONRE. This component is further bifurcated into two sub-components including: (i) weather forecasting and early warning systems to strengthen the Department of Meteorology and Hydrology (DMH) capacity to predict floods and enhance early warning communication systems; and (ii) DRM through enhanced regulatory capacity in the Department of Disaster Management and Climate Change (DDMCC). Component 3: Disaster Risk Financing and Insurance This component includes technical assistance to increase financial resilience of Lao PDR against natural disaster and climate risks in terms of the Government of Lao PDR’s (GoL) capacity to meet post-disaster funding needs. This component is further segregated into three sub-components including: (i) national-level disaster risk financing technical assistance for the development of a national financial protection strategy building on a combination of national and regional disaster risk financing instruments. The strategy would build on existing GoL capacity and previous World Bank (WB) support to the MOF and Ministry of Planning and Investment (MPI); (ii) establishment of the Asia Disaster Resilience Insurance Fund (ADRIF) to support activities for the establishment of a regional disaster risk pooling mechanism; and (iii) financing of the GoL contribution to join the ADRIF. SEA DRM Project – Lao PDR 1 Resettlement Policy Framework Component 4: Project Management This component will support management and implementation of the project. It will include technical and fiduciary staff who will be seconded to the Project Management Unit (PMU) from relevant implementing departments. The project management component will finance institutional support and capacity development for implementation and fiduciary arrangements; including procurement, financial management, management of safeguards issues, internal and external auditing, and the establishment of the project monitoring, evaluation and reporting systems. Component 5: Contingency Emergency Response This “zero component” allows rapid reallocation of project proceeds for emergency recovery and reconstruction support in the event of a declared disaster. This component would finance disbursements against a positive list of critical goods and/or the procurement of specific works, goods, services and operation costs required for emergency recovery. An Emergency Response Operational Manual would be developed for this component detailing financial management, procurement, safeguards and any other necessary implementation arrangements to be submitted to and accepted by the WBG prior to the disbursement of project proceeds. Major safeguards documents to be developed for the Lao PDR Project include an environmental and social management framework (ESMF), ethnic group engagement framework (EGEF) and resettlement policy framework (RPF). The current RPF for the project only covers Components 1 and 2 above. The other three components either do not have works associated with them (i.e., Components 3 and 4) or, are being conducted under separate contract (i.e., Component 5). Based on the initial consultations with the recipients regarding possible investments, the project will likely trigger the following two WB social safeguard policy: Indigenous Peoples (OP/BP 4.10) and Involuntary Resettlement (OP/BP 4.12) and the following five WB environmental safeguard policies: Environmental Assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04) Physical Cultural Resources (OP/BP 4.11), and Projects on International Waterways (OP/BP 7.50). The DIA presented a detailed project proposal to the WBG. The proposed urban flood risk management infrastructure sub-projects will be located in Oudomxay’s provincial capital, Muang Xay, and close proximity along the Nam Mao and Nam Kor rivers. Infrastructure investments potentially include riverbank protection, dike(s), drainage canal reparation and flood gates, weir and riverside park(s). Some PAP and PAH may be required to vacate lands presently occupied and relocate elsewhere, either on a temporary or permanent basis. Other inconveniences may occur including the acquisition of land and minor relocation of temporary buildings and houses, and damage to crops and commercial-value trees located in the dike construction zone, drainage canal and flood gates, weir and riverside park(s) footprint. Potential adverse direct and indirect environmental and social impacts may be related to: (i) sensitive environmental and social sites within the dike construction zone, drainage canal and weir areas such as natural habitats, protected areas, wetlands, cultural resources; (ii) potential economic impacts on small and medium business and/or informal economic activities; (iii) interaction of construction workers with local communities, especially ethnic groups; (iv) potential damage to private property and community infrastructure, and nuisances to communities caused by construction activities; (v) localized environmental impacts due to construction activities with significant slope instability and erosion, impact on drainage patterns; (vi) dust, noise and construction debris will inevitably cause some level of discomfort for local people living in the vicinity; and (vii) exacerbation of road safety hot spots within the SEA DRM Project – Lao PDR 2 Resettlement Policy Framework vicinity of civil engineering and construction sites. Road safety issues during construction and operation were highlighted by the local people during consultation. It is possible that relocation may be required by PAP and PAH who occupy land within the dike construction zone and weir areas. If the riverside parks are included in the list of proposed sub-projects, then a number of PAP and PAH may be required to relocate elsewhere. Acquisition of land will also be required on a temporary or permanent basis for riverbank protection, dike, drainage canal and flood gates. As both relocation of PAP and PAH and acquisition of land may be required, but the exact location and design features of the investments have yet to be defined, it was agreed that an RPF was the appropriate instrument to guide the terms of reference (ToR) for subsequent design and feasibility studies (and to adhere to the requirements of OP 4.12). At the design and feasibility stage, more extensive and comprehensive baseline information will be obtained to guide decision making during project implementation. The MOF is also considering another component to support the urban flood risk management sub- project initiatives, namely, hydrological and meteorological forecasting services and related capacity building and institutional strengthening in MONRE Department of Meteorology and Hydrology (DMH). Depending upon location for hydrometeorological station(s)2, small amounts of land may be required. If the screening process determines that private land is required for the hydromet stations, then the provisions of this resettlement policy framework will apply. While the non-structural investments planned (under sub-component 1.2) will involve technical assistance, some of these plans or studies financed under this component (such as land use planning or the design of green investments) could lead to changes in land use or relocation of households if implemented. For example, in the case of land use planning, the plans produce could identify possible no-build zones, where existing households may need to be relocated from. These plans and studies will therefore assess potential resettlement impacts and risks, and appropriate measures to address such impacts and risks will be developed as needed. The relevant TORs for these activities will include provisions to this effect. 2.0 PRINCIPLES GOVERNING RESETTLEMENT This RPF was prepared as a component of the ESMF for the Lao PDR DRM Project and provides guidance to decision-makers if a proposed sub-project requires use of land on a temporary or permanent basis and/or acquisition of land. Accordingly, the RPF was prepared to establish policies and procedures for preventing (avoiding), minimizing, mitigating and compensating for negative (adverse) impacts related to land acquisition resulting from a proposed sub-project. The objective of the RPF is to minimize involuntary resettlement and provide a framework for assessing concerns of PAP and PAH which may be subject to loss of livelihoods, assets and well-being because of the proposed sub-project. The World Bank Involuntary Resettlement policy (OP/BP 4.12) is triggered when a development project (or sub-project) financed by the World Bank results in people losing land, other assets, or access to productive resources which may cause disruption to, or loss of, livelihood (i.e., property and assets), well-being and/or other entitlements. The RPF provides decision-makers 2 It should be noted that the footprint for hydrometeorological stations (e.g., rain gauges, river/streamflow gauges, satellite, etc.) is expected to be minimal. If existing hydrometeorological stations are upgraded and modernized, it is likely that a WBG safeguards policy instrument Category “C” can be applied. However, if new hydrometeorological stations are being considered then, depending upon location (i.e., public or private land), a Category “B” safeguards policy may apply. SEA DRM Project – Lao PDR 3 Resettlement Policy Framework with guidelines and processes for ensuring that PAP and PAH will improve their livelihoods and well- being or, at least, to restore them to levels prevailing at project commencement. The RPF provides details on the instruments to be prepared, and the measures to be taken, during specific stages of sub-project design and feasibility assessment, and during implementation. The RPF sets out the guideline for determining compensation eligibility and a description of what that compensation might entail. An RPF (as opposed to a resettlement action plan) is the appropriate instrument at this stage of project preparation, as the project is in the planning stages and a decision has not been made by the GoL and the WBG about which proposed sub-projects will be funded, and the exact location or design features of those sub-projects. Such a determination until the project is under implementation when more comprehensive and up-to-date sub-project information is available, and a resettlement action plan (or abbreviated resettlement action) can be prepared. The RPF will be considered applicable if proposed sub-projects affect households and communities which may be displaced, even on a temporary basis. Situations which may be subject to acquisition of land or relocation of PAP and PAH involve investment in urban flood risk management infrastructure, including physical works, such as construction and reparation of riverbank protection, dike, drainage canal and flood gates, and riverside park(s). In such situations, screening typologies will help decision-makers determine the safeguards measures for preventing (avoiding) or mitigating adverse effects. 3.0 RESETTLEMENT PROCESS AND APPROVAL The World Bank environmental and social safeguards policies require the borrower country (Lao PDR) to prepare an ESMF and RPF consistent with GoL laws and addendums and any applicable treaty, such as the 1995 Mekong Agreement, concerning internationally shared waters. These safeguards documents must be prepared, publicly disclosed, and free, prior and informed consultation undertaken to ensure proposed sub-project impacts (positive or adverse effects) are discussed before project appraisal. Once the specific proposed sub-project locations are known, then an Abbreviated Resettlement Action Plan (ARAP) or RAP can be prepared as part of project implementation but before any infrastructure works are undertaken. The RPF is focused on providing guidelines for the development of a site-specific ARAP/RAP (OP/BP 4.12) during proposed sub-project implementation. As mentioned, while involuntary resettlement is expected to be minimal, PAP and PAH who are located on land within the dike construction zone, weir area and riverside park(s) may be relocated as a result of the proposed sub-project(s). Additionally, other land acquisition on a temporary or permanent basis may occur and, in this case, the GoL Decree on Compensation and Resettlement of People Affected by Development Projects (192/PM, 2016) as well as the World Bank’s operational policy on involuntary resettlement (OP/BP 4.12) requires that an ARAP/RAP be developed and fully implemented. The MPWT in association with relevant ministries such as the MPI, MOF, and MONRE will provide the general direction for the planning of the relocation and land acquisition process, ensure coordination between various stakeholders concerned with the project, including those directly connected with relocation and monitoring implementation. At commencement of the sub-projects, stakeholders will be consulted to establish planning principles and work arrangements aimed at identifying and mitigating adverse social impacts induced by the sub-projects. Annex 1 discusses the narrative content of the ARAP/RAP documents which outline what information to obtain through baseline surveys, valuation of properties, and a determination regarding compensation, whether in the context of temporary or SEA DRM Project – Lao PDR 4 Resettlement Policy Framework permanent relocation and compensation or in the context of mitigating other sub-project related social impacts. ARAP/RAP preparation must include the following principles for PAP and PAH so that they are: ▪ Informed about their options and rights pertaining to relocation and compensation; ▪ Consulted on, offered choices among, and provided with technically and economically feasible relocation and/or compensation alternatives; and ▪ Provided prompt and effective compensation at full replacement cost for losses of assets and access which are attributable to the sub-project. Adequate public consultation and participation are mandatory requirements of the ARAP/RAP process. In addition, PAP and PAH must be made aware of: ▪ Their options and rights pertaining to land donation, relocation and/or compensation; ▪ Specific technically and economically feasible options and alternatives for relocation or resettlement sites; ▪ Process of and proposed dates for relocation, resettlement and/or compensation; ▪ Effective compensation rates at full replacement costs for loss of assets and services; and ▪ Proposed measures and costs to maintain or improve their standards of living and well-being. As the DIA, the MPWT DOW will have one Social Development Specialist (SDS) to work alongside the PMU team. Among other duties, the role of the SDS is to monitor implementation of both the RPF and site-specific (i.e., region of influence [RoI]) ARAP/RAP to ensure that appropriate actions are addressed in relation to potential acquisition of land, relocation and/or resettlement issues. Upon approval of the RPF, potential social impacts for each sub-project that requires land acquisition (including land donation), relocation or resettlement will be addressed. It is important to use a participatory approach to engage stakeholders, civil society organizations (CSO), PAP and PAH to ensure broad acceptance of the proposed sub-projects in the RoI. A screening and review process should be used for land acquisition, relocation and resettlement, and a compensation planning process, if applicable. The main purpose of utilizing a screening and review process is to identify land acquisition, relocation or resettlement, and/or compensation issues associated with proposed sub-projects in their RoI. For optimum planning, screening should take place during the initial stages of the RPF process so that the SDS is well-informed to develop the ARAP or RAP. The ARAP/RAP requires site-specific, sub-projects’ footprint or RoI, comprehensive information to identify the following parameters: ▪ Persons who will be affected (positively or adversely) by the sub-projects; ▪ Persons eligible for compensation and/or assistance; and ▪ Type of compensation and assistance and/or assistance required. Following completion, the ARAP/RAP will be submitted to the DIA for approval, following which, it will be forwarded to the World Bank. SEA DRM Project – Lao PDR 5 Resettlement Policy Framework Sub-projects that affect fifty households or less in terms of loss of assets and livelihoods require an ARAP to be prepared. The ARAP includes the following information: (i) brief description of the sub- project, location and its impacts; (ii) consultation with PAP and PAH; (iii) baseline information of PAP and PAH; (iv) category of PAP and PAH by degree and type of impacts; (v) entitlement for compensation, allowances and rehabilitation or restoration assistance by category of impacts in a compensation matrix; (vi) information on relocation site, where applicable; (vii) institutional responsibilities for implementation and monitoring; (viii) grievance redress procedures; (ix) estimated cost of resettlement and yearly budget; and (x) time-bound plan for implementation. A sub-project that affects more than 50 households in terms of loss of assets and livelihoods requires a RAP to be prepared. Typically, the RAP would include the following: (i) brief description of the sub- project, location and its impacts; (ii) principles and objectives governing resettlement preparation and implementation; (iii) legal framework; (iv) baseline information of PAP and PAH; (v) category of PAP and PAH by degree and type of impact(s); (vi) entitlement to compensation, allowances, and rehabilitation or restoration assistance by category of impacts in a compensation matrix; (vii) information on relocation site together with socio-economic conditions on the secondary PAP and PAH and host communities; (viii) institutional arrangement for planning and implementation; (ix) participatory procedures during planning and implementation; (x) grievance redress procedures; (xi) estimated cost of resettlement and annual budget; (xii) time-bound action plan for implementation; and (xiii) internal and external monitoring procedures, including the ToR for external monitoring and evaluation. Appendix A1 provides resettlement outline formats including annotated ARAP and RAP documents. 4.0 CATEGORIES OF DISPLACED PERSONS The Lao PDR sub-projects will have both positive and adverse (negative) impacts on people in Oudomxay’s provincial capital, Muang Xay, and vicinity where urban flood protection measures are under consideration. It is reasonable to presume that households, commercial enterprises and public infrastructure (e.g., schools, health clinics and hospitals, government buildings’ boundary fences) whose properties encroach the dike construction zone, drainage canal and floodgates, weir and riverside parks will potentially be affected adversely, if only in a minor way. Once the sub-project locations are known and land acquisition or associated impacts are identified, resettlement planning should begin. The DIA will carry out, or cause to be carried out, a census survey to identify and enumerate all PAP and PAH, and a socio-economic survey conducted to determine the range and scope of impacts in the RoI.. The surveys, which may be undertaken separately or simultaneously, determine whether an ARAP or RAP is necessary. Although all project activities have the potential to affect all categories of people in the respective RoI locations (whether categorized by race, religion, ethnicity, gender, age, economic status, land tenure or other), only activities that require relocation either on a temporary or permanent basis are considered to have the potential of causing serious displacement problems. The RPF recognizes that certain social groups may be less able to restore their living conditions, livelihoods and income levels; and therefore, are at greater risk of impoverishment when their land and other assets are affected. During the ARAP/RAP social assessment, the project will identify any specific needs or concerns that should be considered for the different populations (ethnic peoples and vulnerable groups – women and female/male youth and children, the elderly and disabled, landless, and poor, etc.) without means of support. Gender integration will be considered during the planning and implementation of the ESMF, RPF and EGEF processes. SEA DRM Project – Lao PDR 6 Resettlement Policy Framework 5.0 DISPLACED PERSONS ELIGIBILITY CRITERIA Following Lao PDR laws and regulations on acquisition of land and, in consideration of the World Bank Involuntary Resettlement policy (OP/BP 4.12), the basic principles of land acquisition and land donation for the project include the following elements: ▪ Minimize negative or adverse impacts as much as possible; ▪ Carry out land adjustment or compensation to improve or, at least, restore the pre-project income and living standards of PAP and PAH; ▪ Ensure free, prior and informed consultation with PAP and PAH on land donation, land acquisition and compensation arrangements, and ensure the process is well documented; and ▪ Provide compensation, if applicable, for private assets at replacement rates, prior to commencement of urban flood risk management infrastructure investments. Displaced persons may be classified in one of the following three groups: a) Those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); will be entitled to compensation for the land they lose, all assets affixed to the land, as well as income restoration measures; b) Those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the resettlement plan will be will be entitled to compensation for the land they lose, all assets affixed to the land, as well as income restoration measures; and c) Those who have no recognizable legal right or claim to the land they are occupying, will be entitled to all assets affixed to the land, as well as income restoration measures. In cases where the remaining portion of land is no longer viable they will be entitled to a replacement plot. Persons covered under a) and b) are provided compensation for the land they lose, and other assistance in accordance with para. 6. Persons covered under c) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the sub-project area prior to a cut-off date established by the borrower and acceptable to the Bank. All PAP and PAH comprised of different populations (see Table 2: Entitlement Matrix) will be provided with compensation (if deemed legal owner or occupant during census), and rehabilitation and restoration if: (i) their land is acquired for project purposes (ii) their income source is directly and adversely affected; (iii) their houses are partially or fully demolished; and (iv) other assets (i.e., crops, trees and facilities) or access to these assets will be reduced or damaged due to land acquisition. Those PAPs or PAHs who have encroached upon public land will have the right to claim compensation for their lost assets such as house/structures, trees and/or crops, and will not necessarily have the right to compensation for land that they cannot establish ownership of or a right of access to.3 Table 1 compares applicable GoL legislation with the WB Involuntary Resettlement operational policy (OP/BP 4.12). Thus, land acquisition and/or land donation and its effect on income sources either on a temporary or permanent basis will apply to all proposed sub-projects in Lao PDR under the SEA DRM Project 3 Lao PDR DRM Project funds may be used to compensate for land acquired under the project as well as pay expenses such as income restoration and moving allowances for both formal and informal occupants at the impacted sites. SEA DRM Project – Lao PDR 7 Resettlement Policy Framework regardless of whether they are directly funded by the World Bank or not. The policy applies to all PAP and PAH regardless of the number or the severity of the induced impact. As mentioned, attention is to be given to the needs of different populations (ethnic peoples and vulnerable groups – women and female/male youth and children, the elderly and disabled, landless, and poor, etc.). 6.0 LEGAL FRAMEWORK ASSESSMENT Moderate environmental and social impacts are anticipated as the proposed urban flood risk management infrastructure investments will require acquisition of land either on a temporary or permanent basis and PAP and PAH may be required to relocate if riverside park(s) are included in the proposed infrastructure investment. Subsequent feasibility and design studies will be guided by the World Bank safeguards documents prepared in line with applicable national laws and the World Bank’s Operational Policies on Involuntary Resettlement. The key Lao PDR legislation and policies relevant to the environmental and social management of the project include: ▪ Constitution of the Lao People’s Democratic Republic (1991, amended 2003 and 2015); ▪ Environmental Protection Law (EPL, 2013); ▪ Ministerial Instruction No. 8030/MONRE on Environmental and Social Impact Assessment (ESIA) and Initial Environmental Examination (IEE) of Investment Projects (2013); ▪ Public Involvement Guideline (2012); ▪ Water and Water Resources Law (1996); ▪ Forestry Law (2007); ▪ Wildlife Law and Aquatic Law (2007); ▪ Decree on Compensation and Resettlement of People Affected by Government Projects (No. 84/GOL, 5 April 2016); and ▪ Land Law (2003). Lao PDR has formulated many laws, decrees, regulations and guidelines for environmental conservation and protection, specifically covering land, forest, water, aquatic and wildlife. The revised Environmental Protection Law (EPL, 2013) is the nation’s principal environmental legislation. The EPL set up unified environmental management for environmental resources with the objective of preserving and facilitating sustainable use of natural resources. The EPL includes measures for the protection, improvement, mitigation and restoration of the environment and guidelines for environmental management and monitoring. MONRE is responsible for implementation of the EPL and various ministries have issued guidelines for implementing provisions of the EPL. Lao PDR regulations applicable to the development of infrastructure projects include the Ministerial Instruction No. 8030/MONRE (2013) and the Environmental Assessment Guidelines (2012) which provide direction to the environmental and social assessment process in Lao PDR. Additionally, the more recent Ministerial Instructions on Public Involvement in the Process of Environmental Impact Assessment of Investment Projects provide updated guidance on the environmental and social assessment process. SEA DRM Project – Lao PDR 8 Resettlement Policy Framework Established in 2005 and revised in 2016, the Decree on Compensation and Resettlement of People Affected by Development Projects has particular relevance to the Lao PDR DRM Project. The decree describes the principles, rules and measures to mitigate adverse social impacts and to compensate for damages that result from involuntary land acquisition or repossession of land and fixed or movable assets, including changes in land use and/or restriction of access to community or natural resources affecting PAP livelihood and income sources. The decree aims to ensure that PAP and households are compensated and assisted to improve or maintain their pre-project incomes and living standards, and are not made worse off than they would have been without the project. The provisions will be applied during the preparation and implementation of the social impact assessment (SIA), the social impact mitigation and monitoring plan, and/or the ARAP/ RAP. The World Bank states that economic development requires, to varying degrees, providing infrastructure and facilities that improve livelihoods and well-being through the expansion of economic opportunities. WBG investment projects must pass the litmus test of its own environment and social safeguards polices and the borrower country for a sub-project to receive funding. These safeguards policies help decision-makers to identify, prevent (avoid), minimize or mitigate harms to people and their environment. The World Bank safeguards policies also require borrower governments (GoL) to address specific environmental and social risks as a prerequisite to obtaining WBG financing for development projects. The project is characterized by a number of proposed sub-projects with little or no detail of the final short list of urban flood risk management infrastructure sub-project investments. The ESMF provides an overarching safeguards document governing the approach, processes and specific instruments to guide and inform the Environmental and Social Management Plan (ESMP), ARAP/RAP and Ethnic Group Development Plan (EGDP), and other safeguard instruments and measures (if applicable) during sub-project infrastructure investment feasibility and design studies. Most aspects of the World Bank Involuntary Resettlement Policy (OP/BP 4.12) are adequately addressed in Lao PDR law. The overarching objective of the project in relation to land and asset acquisition is to assist the PAP and PAH to restore their livelihoods, at least, to the level equal to their pre-project level. Specific principles that apply include: ▪ Urban flood risk management infrastructure investments should avoid residential areas wherever possible to minimize the physical relocation of PAP and PAH, and select the infrastructure footprint that minimizes acquisition of privately or publicly held productive land; ▪ Ensure design standards minimize the need to impose land use restrictions on adjoining areas; ▪ Develop fair and transparent procedures, as defined in the Entitlement Matrix of this RPF to determine compensation for (i) temporary loss of land and/or assets during riverbank protection, construction and reparation works; (ii) permanent acquisition of land and/or assets; and (iii) restrictions on use of land that may be applied to areas adjoining the sub-projects’ river conservation zone footprint and RoI; ▪ Acquire land (or right to use land) through negotiated agreements and with the use of the power of eminent domain only as a last resort; SEA DRM Project – Lao PDR 9 Resettlement Policy Framework ▪ Upon completion of the urban flood risk management infrastructure riverbank protection, construction and reparation works, restore land as best as possible to its original condition in the event of temporary disruption to enable landowners/users/lessees to resume their pre-sub- project activities; ▪ Keep PAP and PAH, and communities fully informed about the sub-projects, the process that will be followed to acquire and compensate for land, and their related rights and avenues for redress; ▪ Ensure that aggrieved PAP and PAH will have redress and recourse options and that solutions are in line with principles stipulated in this RPF and, more importantly, are employed; ▪ All PAP and PAH, without regard to legal status of property, will receive support of various kinds, as per the principles set out in the Entitlement Matrix (see Section 8.0, Table 2), to assist them in their efforts to maintain their livelihoods and well-being prevailing prior to the project. PAP and PAH who may have adverse possession of land (i.e., squatters) may not be compensated for loss of land but can receive compensation for loss of other assets which had been established with their own finances, and for loss of income such that they assisted in their efforts to maintain their livelihoods and well-being. Detailed measures to be implemented will be determined based on a RoI census and socio-economic baseline survey conducted when the ARAP/RAP is developed; ▪ PAP and PAH will be notified of the project implementation schedule and consulted regarding the principles of land acquisition and loss of, or damage, to assets; and ▪ Damages to assets, such as standing crops, trees, fences and kiosks, and loss of income (including loss of harvest) will be minimized, however inevitable, and will be compensated without regard to legal status of ownership according to the Entitlement Matrix illustrated in Table 1. The recently revised (2016) Decree on Compensation and Resettlement of People Affected by Development Projects provides the principles, mechanisms and procedures to mitigate adverse social impacts and to compensate damages that result from involuntary land acquisition or repossession of land and fixed or movable assets. The Compensation and Resettlement (C&R) decree aims to ensure that PAP and PAH are compensated and assisted to improve or maintain their pre-project incomes and standard of living, and are not made worse off than they would have been without the project. The Decree (No. 84/GOL, 2016) is largely consistent with the main principles of the World Bank’s Involuntary Resettlement policy (OP/BP 4.12). Table 1 provides a gap analysis between the World Bank policy on Involuntary Resettlement (OP/BP 4.12) with the Lao PDR 2016 Decree (No. 84/GOL). SEA DRM Project – Lao PDR 10 Resettlement Policy Framework Table 1 Gap analysis between the World Bank Involuntary Resettlement Policy (OP/BP 4.12) and Lao PDR 2016 Decree on Compensation and Resettlement of People Affected by Development Projects. Subjects OP 4.12 Compensation and Resettlement Decree No. 84/GOL (2016) Gap/Project Measures 1. Land Property 1.1. Policy objectives PAPs (Project Affected Persons) should PAP are compensated and assisted to improve or maintain their pre- OP 4.12 Policy Procedures will be applied - be assisted in their efforts to improve project incomes and living standards, and are not made worse off cash compensation at replacement cost for their livelihoods and standards of living than they would have been without the project. land and structures will be paid without or at least to restore them, in real terms, deduction for depreciation or salvageable to pre-displacement levels or to levels materials. prevailing prior to the beginning of Also – income additional payments will be project implementation, whichever is made to restore incomes, crops, trees as well higher as moving costs. 1.2. Support for affected Financial assistance to all project PAP who do not have legal land title, land use certificate or other PAPs who do not have legal title, land use households who have affected persons to achieve the policy acceptable documentation indicating their land use right, including certificates or other acceptable documentation no recognizable legal objective (to improve their livelihoods customary and traditional land use right, only provides the right to indicating their land use right will still be entitled right or claim to the land and standards of living or at least to claim compensation for their lost assets such as house/structures, to Financial assistance to achieve the objective they are occupying restore them, in real terms, to pre- trees and/or crops, and not land. of the involuntary resettlement policy (to displacement levels or to levels improve their livelihoods and standards of living prevailing prior to the beginning of or at least to restore them, in real terms, to pre- project implementation, whichever is displacement levels or to levels prevailing prior higher) to the beginning of project implementation, whichever is higher) Vulnerable PAPs will receive special assistance. OP 4.12 Policy Procedures will be applied. 1.3. Compensation for Compensation at full cost for all PAP who do not have legal land title, land use certificate or other Compensation at full replacement cost will be illegal structures structures regardless of legal status of acceptable documentation indicating their land use right, including given for all structures affected, regardless of the PAP’s land and structure. customary and traditional land use right, only provides the right to legal status of the land and structure. claim compensation for their lost assets such as house/structures, trees and/or crops, and not land. Provide moving allowance based on structure types. OP 4.12 Policy Procedures will be applied. SEA DRM Project – Lao PDR 11 Resettlement Policy Framework Table 1 (Cont’d.) Subjects OP 4.12 Compensation and Resettlement Decree No. 84/GOL (2016) Gap/Project Measures 2. Compensation 2.1. Methods for Compensation for lost land and other Article 2: Independent appraiser conducts replacement determining assets should be paid at full cost study for all types of assets affected in ▪ The compensation shall be in the form of land, material or compensation rates replacement costs, order to establish compensation, which are money for the land, agricultural products, livestock and incomes that are affect by development projects based on compensation appraised by IRC/GDR to ensure full value. replacement costs. Article 4 6. Compensation value means the value calculated in the form of OP 4.12 Policy Procedures will be applied material, money or land, constructed facilities, agricultural products, livestock and incomes which have been affected by development projects. Article 9 ▪ Project owners, in collaboration with the committee for compensation and resettlement at the local level, must estimate the value for compensation for land, constructed facilities, crop products, livestock and potential incomes and organize consultations with affected people by selecting the right and appropriate options based on prices applied by the state, market prices or average prices applicable for period of compensation and based on the types of properties and locations. ▪ The prices applied by the state (middle prices) are the prices specified in a separate regulation which are identified and regulated by the Ministry of Natural Resources and Environment from time to time. 2.2. Compensation for Loss of income sources should be Article 9 OP 4.12 Policy Procedures will be applied – loss of income sources compensated (whether or not the ▪ Provision of agriculture land in appropriate ways including the loss of income will be restored to pre- or means of livelihood affected persons must move to another creation of new livelihood options and stable income generation displacement rates regardless of the legal location) activities and promotion of local crafts/industry in addition to status of the affected person agricultural production activities for the affected people. SEA DRM Project – Lao PDR 12 Resettlement Policy Framework Table 1 (Cont’d.) Subjects OP 4.12 Compensation and Resettlement Decree No. 84/GOL (2016) Gap/Project Measures 2.4. Livelihood Provision of livelihood restoration and Article 13: Because the impacts are expected to be minor, restoration and assistance to achieve the policy ▪ In parallel with the establishment of resettlement plan as income restoration will be addressed on a case assistance objectives. prescribed in article 10 of this decree, the project owner must by case basis, with additional payments being coordinate with the compensation and settlement committee at made to restore incomes and livelihoods to pre- the local level to collect information on livelihood and income displacement rates. generation matters of the affected people in details to establish the livelihood rehabilitation plan to contribute to the management and monitoring social and environmental impacts within the project development framework. 2.5. Consultation and Participation in planning and Article 5: Extensive consultation and participation will be disclosure implementation, specially confirming the The compensation and resettlement shall be carried out in conducted at every stage of RAP planning and eligibility criteria for compensation and compliance with the following principles: implementation. assistance, and access to Grievances Redress Mechanisms 1. Protection of the rights and legitimate benefits of affected people; 2. Ensure equality, correctness, transparency, disclosure and OP 4.12 Policy Procedures will be applied. fairness; 3. Ensure coordination, consultation and participation between the project owner, affected people, state agencies and other relevant stakeholders. 3. Grievance Redress Mechanism Procedures for Grievance redress mechanism should Article 23: Grievances from PAP and PAHs in connection recording and be under Government Officials In case the affected view that the project owner does not comply with with the implementation of the RP will be processing grievances Responsibilities for handling grievances the plan for compensation, resettlement and rehabilitation of people’s handled through negotiation with the aim of with clear procedures for recording and livelihood in accordance with this decree or other related plans that achieving consensus. Complaints will go processing grievances affect their interests, they are entitled to request to related authorities through three stages before they may be to solve the request(s) according to the procedures stipulated in elevated to a court of law as a last resort. paragraph 1, article 24 of this decree. 4. Monitoring & Evaluation Internal and external independent Article 27: The PMU in close coordination with GDR-IRC monitoring are required ▪ The project owner must set up a management unit of will conduct internal monitoring on resettlement compensation and resettlement to take charge of monitoring implementation. The monitoring will include and examination by himself other than other parties. The unit is progress reports, status of the RP obliged to make reports to the state audit-inspection implementation, information on location and organizations concerning the monitoring and examination of the numbers of people affected, compensation implementation of the plan for compensation, allocation and amounts paid by item, and assistance provided relocation, and rehabilitation of people’s livelihood of the to PAHs. The report of monitoring results will development project as stipulated in the overall plan, at each be prepared by MRD and submitted to IRC and period. WB on a quarterly basis. SEA DRM Project – Lao PDR 13 Resettlement Policy Framework Certain principles must be supported to address gaps in existing Lao PDR legal provisions. The RPF is based on a philosophy that the project must serve the needs of society and ensure PAP and PAH are at least as well off due to sub-project implementation as they were prior to commencement of proposed urban flood risk management infrastructure investment. This can be ensured through the following objectives: ▪ Avoid involuntary resettlement where feasible and minimize resettlement where population displacement is unavoidable; ▪ Ensure that displaced people receive compensation, assistance and livelihood restoration so that they would be at least as well off as they would without the project; ▪ PAP and PAH will benefit from the sub-projects; ▪ Project stakeholders (including PAP and PAH) are consulted and given the opportunity to participate (as practical) in the design, implementation and operation of the sub-projects; and ▪ Appropriate assistance and compensation (cash or in-kind) is provided to adversely impacted PAP and PAH, and different populations who may have usage or customary right to the land or other resources taken for sub-projects. 7.0 ASSET VALUATION The GoL agreed to a methodology for valuing affected assets as per the World Bank-financed Lao Road Sector Project 2 (LRSP-2). Accordingly, the following narrative draws heavily from the LRSP-2 best practice RPF example and is complemented by the field visits undertaken as part of this assignment, stakeholder and community consultations, and professional judgment. The sub-projects may impact PAP directly or indirectly and it may not be possible to eliminate the need for land acquisition. Although involuntary resettlement is not expected during implementation of the sub- projects, it is possible and likely that local communities, PAP and PAH elect to make a voluntary contribution of affected land without compensation. In this case, the sub-project must address the issue of voluntary donation. This would only be acceptable for marginal impacts and only when benefits to PAP and PAH can be assured and the impact is less than 10 % of the total land area. The process of consultation with potential contributors should be conducted in an open and transparent manner by the Village Resettlement Sub-committees (VRS) with decisions regarding voluntary contributions based on free, prior and informed consultation with PAP and PAH. Local authorities must document the consultation process and agreement as part of the urban flood risk management infrastructure investment for Oudomxay provincial capital and vicinity. The treatment of PAP and PAH must comply with relevant World Bank policies and procedures. It is possible that ethnic groups can be affected directly or indirectly by the proposed sub-projects. In this case, an EGDP is prepared as a separate guiding document based on the EGEF for the project. Where the proposed sub-projects directly or indirectly impact ethnic groups, then the necessary safeguards instruments and measures will be developed to guide the feasibility and design studies prior to project appraisal. Accordingly, the consultation process and any planned prevention (avoidance) or mitigation measures must be documented. If ethnic groups were adversely affected by sub-projects due to the requirement for land acquisition or, other induced negative impacts (i.e., loss of livelihood, assets, well-being and/or other entitlements) then, the EGEF would discuss these direct or indirect effects and provide guidance for the development of social safeguards instruments and measures. The RPF provides guidance on acquisition of land and other assets which may result in disruption or loss of livelihood and income to PAP and PAH. SEA DRM Project – Lao PDR 14 Resettlement Policy Framework The RPF also includes guidance on voluntary acquisition of land or other assets (including restrictions on asset use) caused by project and sub-project implementation either through contribution or with compensation by communities; which are described in Section 14.0 and Appendix A2 of this document. The MPI will establish principles and procedures to ensure equitable treatment for, and restoration of, any person adversely affected by project implementation. Two forms of acquisition of land will be considered under the Lao PDR DRM Project including: ▪ Voluntary Contributions: will be accepted as long as the free, prior and informed consultation process is followed and adhered to, and such a situation is well documented by local authorities. Voluntary Land Donations can only be justified when the proposed sub-projects will likely directly benefit the PAP and PAH, and when the sub-project location is not fixed to the site. However, voluntary land and/or asset contributions will not be considered if sub-projects are site-specific (i.e. they must be located at that site because of its unique locational or physical characteristics), would significantly harm the livelihoods and well-being of individual owners or users (i.e., land acquisition will not constitute more than 10 % of PAP and PAH income generating assets or involve the relocation of the household residential structure see Table 1); and ▪ Voluntary Contributions with Compensation: persons who contribute land or other assets have the right to seek and receive compensation4. In such cases, project authorities will ensure that compensation terms are agreed to before sub-projects are undertaken. These terms will include: o Replacement of land with an equally productive plot or other equivalent productive assets; o Materials and assistance to replace fully solid structures that will be demolished; o Replacement of damaged crops and commercial-value trees, at market value; and o Other acceptable in-kind compensation. In cases where land will be purchased, replace cost will be paid. Replacement cost – is the method of valuation of assets which determines the amount of compensation sufficient to replace lost assets, including any necessary transaction costs. Compensation at replacement cost is defined as follows: For agricultural land, it is the pre-sub-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labor and contractors' fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet 4 Lao PDR DRM Project funds may be used to compensate for land acquired under the project as well as pay expenses such as income restoration and moving allowances for both formal and informal occupants at the impacted sites. SEA DRM Project – Lao PDR 15 Resettlement Policy Framework the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Replacement costs will be calculated on the basis of a replacement cost study. The main objective of the RCS is to determine the rate of land prices based on actual transaction records of the affected areas, of affected main and secondary5 structures and other immovable assets. This study would be conducted by an independent appraiser. Based on the results of RCS, the PAH will receive compensation at replacement cost (reflecting market price) from RoUM for their loss of land and property due to the sub- project. The RCS will be implemented during the DMS. Where necessary, the GoL will also provide special assistance in the form of suitable land, rental allowances, livelihood restoration payments, disruption allowances, as well as special payments to vulnerable populations affected by the project (ethnic peoples, women and female/male youth and children, the elderly and disabled, landless, and poor, etc.). The main principle is that PAP and PAH are not made worse off by implementation of the proposed sub-projects. 5 This includes fences, wells, toilets, kitchens, etc. SEA DRM Project – Lao PDR 16 Resettlement Policy Framework 8.0 ORGANIZATIONAL PROCEDURES FOR ENTITLEMENTS As the DIA, the MPWT has the lead responsibility for the sub-projects and implementation of the RPF. The MPWT DOW in association with the Provincial Department of PWT Oudomxay Waterway Sector Project Implementation Unit (PIU) will develop and implement the abbreviated resettlement action plan/resettlement action plan in the respective footprint for each sub-project according to the policies and procedures articulated in the RPF, relevant Lao PDR national laws and decrees, and the World Bank safeguards policy (OP/BP 4.12). In addition to MPWT DOW, a number of other government departments will play instrumental roles in the design, construction and operation of the project. Pursuant to the active legislation, MONRE is responsible for environmental issues. MPI is responsible for legal matters regarding land ownership and expropriation. Table 2 shows the general entitlements for compensation and restoration assistance guidelines for the project. However, the ARAP/RAP may provide more specific details or additional allowances. As the DIA, MPWT DOW is responsible for supervising and providing implementation support for safeguards, including the ESMP, ARAP/RAP and EGDP. Compensation will be reviewed and managed or monitored by the Provincial and District Resettlement Committees, which will be established in accordance to the Decree 84, 2016 on compensation and resettlement. Village Resettlement Sub- committees (VRS) will also be established as needed in villages where land acquisition and resettlement will occur, and the VRS will facilitate compensation and consultation with the project affected people and their households and manage the grievance redress mechanism at the village level. The VRS will be established within villages where land acquisition and resettlement impact exist. It is incumbent upon the DIA to assist in the formation of the resettlement committees and provide training and capacity development in relation to the compensation entitlements and ARAP/RAP. The DIA will have a supervisory role and will ensure that provisions contained in the ARAP/RAP are implemented, monitored and reported. The MPWT DOW will be responsible for the organizational arrangements associated with implementing and delivery of entitlements relevant to mitigating adverse impacts and compensation. The process for implementing the mitigation measures should include: ▪ Determine if land acquisition and loss of other assets will occur or voluntary land donation or relocation is required (a census and detailed socio-economic surveys need to be conducted on PAP within the RoI after confirmation of sub-projects’ footprint); ▪ Develop a detailed list of all PAP and PAH in the RoI; ▪ Determine what each PAP and PAH would lose in terms of livelihoods and assets (land, crops, trees); ▪ Determine what the timeframe is for compensation, if any; ▪ Development of a ARAP/RAP and submission to the World Bank for “no objection” to proceed; ▪ Provide compensation in-kind or cash, if applicable; and ▪ Determine what the preferred compensation is, ensuring a participatory process. SEA DRM Project – Lao PDR 17 Resettlement Policy Framework Table 2 Entitlement matrix. Type of Losses Entitled Persons Entitlements Implementation Issues A. Loss of Land Residential Land Legal owner or occupant ▪ With remaining land sufficient to rebuild houses/structures: ▪ Legal owners are those who have land use certificates identified during census (i) Cash compensation at replacement cost which is equivalent to or land titles from the Land Titling Project. and tagging. the current market value ▪ Voluntary donation of minor strips of residential land will of land of similar type and category, and free from transaction only be allowed by the project provided that the costs (taxes, administration fees) and (ii) District government to following criteria are strictly complied with: (i) the PAP’s improve remaining residential land at no cost to PAP/PAH (e.g., total residential land area is not less than 300 m2; (ii) if filling and leveling) so PAP/PAH can move back onto a plot. the PAP/PAH’s total residential land area is more than ▪ Without remaining land sufficient to rebuild houses/structures: 300 m2, the strip of land that can be donated cannot be (i) Replacement land equal in area, same type and category, more than 5% of the total land area; and (iii) there are without charge for taxes, registration and land transfer, with land no houses, structures or fixed assets on the affected title (assuming Land Titles are available in the area); if not, land portion of land. survey certificate, OR (ii) cash compensation at replacement cost ▪ Voluntary donation according to these criteria which is equivalent to the current market value of land of similar will follow the process in accordance with World Bank’s type and category, free from transaction costs (taxes, Operational Policy, which is the same as the administration fees) plus assistance to purchase and register land. Government’s Decree 192/PM/2005. B. Loss of Structures Totally Affected Owners of affected ▪ Cash compensation at replacement cost for the entire structure ▪ Adequate time provided for PAP/PAH to rebuild/repair Houses/Shops, and houses whether or not equivalent to current market prices of (i) materials, with no their structures. Secondary Structures land is owned (regardless deduction for depreciation of the structure or salvageable (kitchen, rice bins) of legal status). materials; (ii) materials transport; and (iii) labor cost to cover cost Partially Affected for dismantling, transfer and rebuild; and Houses/Shops but no ▪ Timely provision of trucks for hauling personal belongings at no ▪ Affected houses and shops that are no longer viable are longer viable cost to the PAP. those whose remaining affected portion are no longer (Will require relocation) usable/habitable. ▪ ▪ SEA DRM Project – Lao PDR 18 Resettlement Policy Framework Table 2 (Cont’d.) Type of Losses Entitled Persons Entitlements Implementation Issues B. Loss of Structures (Cont’d.) Partially Affected Owners of affected ▪ Cash compensation at replacement cost for the affected portion of  Houses and Shops and houses whether or not structure equivalent to current market prices of (i) materials and secondary structures land is owned. labor, with no deduction for depreciation of the structure or for (Will not require salvageable materials (ii) materials transport, and (iii) cost of relocation) repair of the unaffected portion. Electricity Poles Electricity Companies. ▪ Cash compensation for cost to dismantle, transfer and rebuild.  C. Loss of Livelihoods Activities Including Crops, Trees and Ponds Productive Land Legal owner or occupant ▪ For marginal loss of 10% (or less) of land, cash compensation ▪ Legal owners are those who received land utilization (paddy, garden, and identified during census at replacement cost which is equivalent to the current market certificates or land titles from the Teak Plantation) and tagging. value of land within the village, of similar type, category and Land Titling Project. productive capacity, free from transaction costs (taxes, administration fees), or ▪ Replacement land of similar type, category and productive ▪ Voluntary donation will not be applied for any assets capacity of land within or nearby the village, with land title. except for very minor losses of land holding as defined under this RPF. ▪ If the impacts on the total productive land is 10% or more, as a priority, replacement land of similar type, category and productive capacity of land within or nearby the village, with land title (assuming Land Titles are issued in the area). If not, land use certificate to be issued. Alternatively, at the request of PAP or PAH, cash compensation at replacement cost plus assistance to purchase and register land. SEA DRM Project – Lao PDR 19 Resettlement Policy Framework Table 2 (Cont’d.) Type of Losses Entitled Persons Entitlements Implementation Issues C. Loss of Livelihoods Activities Including Crops, Trees and Ponds (Cont’d.) Fishpond Owner of affected ▪ Cash compensation of affected portion at replacement cost which ▪ Adequate time provided for PAP to harvest fish stocks. (Remaining area is still fishpond. is equivalent to the current market value viable or can still meet of fishpond, labor and rent of equipment to excavate fishpond, free expected personal or from transaction costs (taxes, administration fees). commercial yield) ▪ If the currently held fish stocks will not be harvested before the ▪ Voluntary donation of fishpond land will not be allowed project takes possession of the fishpond, then cash compensation by the project. for the projected mature value of fish stock held at the time of compensation.  ▪ District government to restore/repair remaining fishpond. If support cannot be provided by the contractor, the PAP will be entitled to cash assistance to cover for payment of labor and rent of equipment to restore/repair fishpond. Crops and Trees Owner of crops and trees ▪ If standing annual crops are ripening and cannot be harvested, whether or not land is cash compensation at replacement cost equivalent to the highest owned. production of crop over the last three years multiplied by the current market value of crops. ▪ For perennial crops and trees, cash compensation at replacement cost equivalent to current market value based on type, age, and productive capacity. ▪ For timber trees, cash compensation at replacement cost equivalent to current market value based on type, age and diameter at breast height (DBH) of trees. SEA DRM Project – Lao PDR 20 Resettlement Policy Framework Table 2 (Cont’d.) Type of Losses Entitled Persons Entitlements Implementation Issues C. Loss of Livelihoods Activities Including Crops, Trees and Ponds (Cont’d.) Loss of business Owners of shops. ▪ For businesses (shops) cash compensation equivalent to the ▪ It is estimated that it will take one day to move the income during average daily revenue for the business over the previous 12 shops if made of traditional materials relocation or during months.  (bamboo)/movable (can be carried without totally dismantling/repair of dismantling the structure) and approximately four weeks affected portion (without – maximum - to re-establish business in another relocation) location. It will take about two days to remove and repair affected portion of shop made of permanent materials (such as good wood and concrete). Because these structures will not be relocated, business can commence as soon as repairs are completed.  ▪ The rate will be verified through interviews with informal shop owners to get an estimate of daily net profit. Severe impacts on Vulnerable PAP/PAH ▪ An additional allowance of 1-month supply of rice per person in ▪ The poorest will be those below the national poverty vulnerable PAP such as the poorest, or the household. line as defined in the poverty partnership agreement (Relocating PAP and households headed by with World Bank. those losing 10% or women, the elderly, or ▪ Eligible to participate in income restoration program. more of their productive disabled, and ethnic assets) group. ▪ The contractors will be required make all reasonable efforts to recruit severely affected and vulnerable PAP as laborers for road construction and road maintenance works. Transition subsistence Relocating households – ▪ Relocating PAP/PAH without any impact on business or source of allowance relocating on residual incomes will be provided with cash or in-kind assistance land or to other sites. equivalent to 16 kg of rice at current market value for 3 months Severely affected PAP per household member. losing 10% ▪ Relocating PAP/PAH with main source of income affected or more of their (i.e., from businesses) or PAP losing more than 10% of their productive land. productive land will be provided with cash or in-kind assistance equivalent to 16 kg of rice at current market value for 6 months per household member. SEA DRM Project – Lao PDR 21 Resettlement Policy Framework Table 2 (Cont’d.) Type of Losses Entitled Persons Entitlements Implementation Issues D. Loss of Common Property Resources Permanent loss of Villagers or village ▪ Compensation at replacement cost for present/existing structures  physical cultural households. based on its present value. resources/public structures/village or collective ownerships Graves located in the Owners of graves. ▪ Compensation for the removal, excavation, relocation, reburial affected areas and other related costs will be paid in cash to each affected family. E. Temporary Impacts Due to Sub-Project Construction or Maintenance Temporary Use of Land Legal owner or occupant. ▪ For agricultural and residential land to be used by the civil works ▪ The construction supervision consultant will ensure that contractor as by-pass routes or for contractor’s working space, the (i) location and alignment of the by-pass route to be (i) rent to be agreed between the landowner and the civil works proposed by the civil works will have the least adverse contractor but should not social impacts; (ii) that the landowner is adequately be less than the unrealized income and revenue that could be informed of his/her rights and entitlements as per the generated by the property during the period Project resettlement policy; and (iii) agreement reached of temporary use of the land; (ii) cash compensation between the landowner and the civil works contractor at replacement cost for affected fixed assets (e.g., structures, are carried out. trees, crops); and (iii) restoration of the temporarily used land within 1 month after closure of the by-pass route or removal of equipment and materials from contractor’s working space subject to the conditions agreed between the landowner and the civil works contractor. Transportation Relocating households – ▪ Provision of dump trucks to haul all old and new building materials ▪ PAP/PAH may also opt for cash assistance. The allowance to other sites. and personal possessions. amount (cost of labor and distance from relocation site) to be determined during implementation. SEA DRM Project – Lao PDR 22 Resettlement Policy Framework MPWT DOW as the DIA would be responsible for public consultation and public disclosure of information to national and subnational government, stakeholders and civil society organizations (Non-Profit Associations, Community Based Organizations (CBO), communities, and PAP and PAH. Consultations and community participation would be conducted throughout the sub-projects’ planning process, design and implementation stages. Planning and acquisition of land and other assets from PAP and PAH will follow a free, prior and informed consultation process and be well documented. PAP and PAH will receive prior information regarding the form of compensation (if applicable), relocation and other assistance available to them, including: ▪ Relevant details about the sub-project; ▪ ARAP/RAP and various degrees of sub-project impact; ▪ Details of entitlements under the ARAP/RAP and PAP and PAH requirements for accessing entitlements; ▪ Compensation process and rates; ▪ Relocation and resettlement site development consultations to obtain agreement through free, prior and informed consultation and support of PAP and PAH from participation in the consultations; ▪ Implementation schedule with timetable for delivery of entitlements; and ▪ Information concerning grievance redress mechanisms and how to utilize them. 9.0 LINKING RESETTLEMENT TO CIVIL WORKS As mentioned, the project is expected to cause moderate physical relocation as a result of proposed sub- projects related to the urban flood risk management infrastructure investments in Oudomxay’s provincial capital, Muang Xay, and vicinity. Urban flood risk management infrastructure initiatives may require the permanent use of some areas for riverside protection, dike, drainage canal and flood gates, weir and riverside park(s) will require acquisition of land. In addition, temporary use of some areas will be required for borrow pits or waste disposal sites which may result in unexpected low-level impacts, including disruption of access or damage to property (i.e., land and buildings). Urban flood risk management infrastructure initiatives may also require the relocation of temporary structures, temporary occupation of plots of land or may cause damage to crops and trees within the dike construction zone, other footprint (i.e., drainage canal and flood gates, weir and riverside parks) or RoI. Acquisition of land would be identified during implementation when final urban flood risk management infrastructure design becomes available and the extent of land acquisition required and its impact on PAP and PAH are known. However, it may be surmised that even temporary displacement and dislocation of businesses in the short term may have an adverse social impact on communities and different populations. Local communities, PAP and PAH may elect to make a voluntary contribution of affected land without compensation. This situation should only be acceptable for marginal impacts when benefits to PAP and PAH can be assured, and where the sub-project is not site-specific. The process of consultation with potential contributors should be conducted in an open and transparent manner by the resettlement committees with decisions regarding voluntary contributions based on free, prior and informed consultation and voluntary choice by affected people. Local authorities must document the consultation process and agreement as part of the urban flood risk management infrastructure investment. SEA DRM Project – Lao PDR 23 Resettlement Policy Framework All PAP and PAH, without regard to legal status of property, will receive support of various kinds, as per the principles outlined in the Entitlement Matrix, to assist them in their efforts to maintain their livelihoods and well-being prevailing prior to implementation of the project. Those who may have adverse possession (i.e., squatters) will not be compensated for loss of land but will receive compensation for loss of other assets which have been established with their own finances, and for loss of income such that they are assisted in their efforts to maintain their livelihoods and well-being. Detailed measures to be implemented will be determined based on the census and socio-economic survey conducted when the ARAP or RAP are developed. PAP will be notified of the sub-project implementation schedule and consulted regarding the principles of land acquisition and loss of, or damage to, assets. Damages to assets, such as, standing crops, trees, fences and kiosks, and loss of income, including loss of harvest will be minimized, although some disruption is inevitable. Where disruption occurs, PAP and PAH will be compensated without regard to legal status of ownership according to the Entitlement Matrix provided in this RPF (Table 2). A market survey will be conducted to assess the prevailing market prices of land and construction materials for affected structures, crops and relevant items which will be used as the unit prices to determine compensation. This exercise will provide assurance to communities and PAP and PAH that they will be able to purchase equivalent value replacement land. Loss of income and assets will be compensated on a net basis without tax, depreciation or any other deduction. Cut-off dates for Eligibility A census and household survey will be conducted as soon as the urban flood risk management sub- projects have been confirmed in order to develop an inventory of project impacts on PAP and PAH and business. Care will be taken to set cut-off dates immediately after the determination of the final sub- projects are confirmed. The household survey will be used to record all loss of assets incurred as a result of project implementation. A binding legal instrument will be used to record all loss of assets which will be signed by PAP and PAH, their neighbors, and representatives of local government. Compensation paid to each affected entity will be based on the legal instrument and a detailed methodology to calculate compensation which is articulated in the ARAP/RAP. Relocation / Taking Possession of Site / Commencement of Civil Works Once a binding legal agreement is signed, compensation and other assistance (replacement land, transportation allowance, etc.) must be provided in a prompt manner (within one month), and in accordance with the principles land out in RAP. The DIA cannot take full possession of the land until the required compensation and assistance is provided and the PAP and PAH have vacated the land in accordance with the legal agreement signed. Also, civil works cannot commence on the land until the land is vacated and the DIA has taken full possession. 10.0 GRIEVANCE REDRESS MECHANISM As the DIA, MPWT DOW will establish a grievance redress committee at the village level, as well as the district and provincial level. These will be established to deal with resettlement related grievances as they arise. These committees will receive, evaluate and facilitate the resolution of PAP and PAH concerns, complaints and grievances. Grievance redress committees would be comprised of representatives of PAP and PAH, community leaders, and independent civil society organizations (Non- SEA DRM Project – Lao PDR 24 Resettlement Policy Framework Profit Association and CBO) in addition to representatives from village and district levels, and PMU and PIU authorities. If the grievance relates to a dispute over the valuation of an asset to be acquired, then the DIA will acquire of an additional independent assessor to inform the decision of the relevant grievance redress committee. The grievance redress committees will function, for the benefit of PAP and PAH, during the entire life of the sub-projects, including the defects liability period. Consultation with PAP and PAH will take place early in the process of the project planning. Prior to sub- project commencement, village leaders will conduct a survey of directly affected people’s land and assets. Village leaders will conduct free, prior and informed consultation with affected groups, including businesses and PAP and PAH to discuss options in the case of land acquisition and land donation. The whole process will be well documented. All complaints and grievances will be received in writing, or if given verbally then written at the same time and place, from PAP and PAH and duly recorded by each level of the grievance committee. PAP and PAH will be exempted from all administrative and legal fees incurred pursuant to the grievance redress procedures. Grievances related to any aspect of the proposed sub-projects will be dealt with through negotiations with the ultimate aim of reaching a consensus. Grievance redress procedures aim to provide a time-bound and transparent mechanism to voice and resolve social and environmental concerns linked to the sub-projects. These grievance redress procedures are not meant to circumvent the government’s inbuilt redress process, nor provisions of the national laws, but rather to address PA P and PAH concerns and complaints promptly, making it readily accessible to all segments of PAP and PAH and different populations and scaled to the risks and impacts of the sub-projects. The ARAP or RAP will establish the means for PAP and PAH and displaced businesses to bring complaints to the attention of relevant project authorities. Grievance procedures should include reasonable performance standards, including time required to respond to complaints and should be provided without charge to those displaced persons. The ARAP/RAP should also state other avenues available to aggrieved persons if the project-related procedures fail to resolve complaints. Article 23 and 24 of the C&R Decree (No. 84/GOL, 2016) requires the project to establish an effective mechanism for grievance resolution. The decree requires that the sub-project proponent, Provincial Department of Public Works and Transport (DPWT) Oudomxay Waterway Sector, is responsible for setting up the grievance redress mechanism and to take actions to resolve issues. The ESMF contains details on the grievance redress mechanism for the Lao PDR DRM Project. Grievances related to environmental and social issues from directly or indirectly affected ethnic groups as a result of implementation of sub-projects will be resolved by the Grievance Redress Committee (GRC) through the project grievance redress mechanism presented in Figure 1. However, the complainant also retains the right to bypass this procedure and can address a grievance directly to the DPTW PIU office or the national assembly, as provided by law in Lao PDR. At each level grievance details, discussions and outcomes will be documented and recorded in a grievance logbook. The status of grievances submitted and grievance redress will be reported to Provincial DPWT Oudomxay Waterway sector management through the monthly report. In order to effectively and quickly resolve grievances PAP and PAH may have, the following process will be applied: ▪ Stage 1: if PAP and PAH are not satisfied with the resettlement plan or its implementation, PAP and PAH can issue a verbal or written complaint to the Provincial or District Resettlement Committee. If it is a verbal complaint, the village should deal with this complaint and document it in a written record. The Provincial or District Resettlement Committee should resolve the complaint or grievance within two weeks; SEA DRM Project – Lao PDR 25 Resettlement Policy Framework ▪ Stage 2: if PAP and PAH are not satisfied with the result in Step 1, PAP and PAH can file an appeal with the project resettlement office (PRO) after PAP and PAH receives the decision made in Step 1. The PRO should make a decision within two weeks; ▪ Stage 3: if PAP and PAH are not satisfied with the result of Step 2, PAP and PAH can file an appeal with the provincial resettlement committee at the Provincial Department of Natural Resources and Environment (PDoNRE) for administrative arbitration after receiving the decision made by the PRO. The administrative arbitration organization should make the arbitrated decision within 20 days; and ▪ Stage 4: if PAP and PAH are still unsatisfied with the arbitrated decision made by the administrative arbitration organization, after receiving the arbitrated decision, PAP and PAH can file a lawsuit in a civil court according to the relevant laws and regulations in Lao PDR. Figure 1 GRM process. Local Resolution Measures Solved End If NOT Grievance Redress Committee (Project Level) Solved in End 10 days? If NOT PDoNRE Solved in End 20 days? If NOT If still unresolved, RAP may choose to exercise their right under Lao PDR law to refer the matter to a court of law. PAP and PAH can make a complaint or appeal on any aspects of the sub-projects’ design and implementation, including issues related to resettlement. A complaint and grievance feedback form will be developed under the project and made available at Oudomxay’s provincial capital, Muang Xay, and SEA DRM Project – Lao PDR 26 Resettlement Policy Framework vicinity, including where PAP and PAH live, for use by PAP and PAH to raise complaints or grievances. PAP and PAH will be clearly informed of the complaint and appeal channels described above through village meetings and other forms of communication. Information and Communications Technology (ICT) and media tools should be used to communicate issues and information. Opinions and suggestions on resettlement provided by concerned people and organizations should be documented and resettlement organizations, at various levels, should study and address any issue in a timely manner. The organizations addressing the PAP and PAH complaint and appeal process shall not charge fees. Any expenses incurred due to submission of complaints and/or appeals should be classified as unexpected expenses, and paid for by the relevant DIA. 11.0 ARRANGEMENTS FOR FUNDING RESETTLEMENT The RAP will include detailed description of the costs for compensation and other restoration entitlements as part of the process to compensate relocated PAP and PAH. Arrangements will be made for PAP and PAH property and assets to be classified on the basis of agricultural land, residential land, business land, houses, business assets and other holdings. Detailed budgetary estimates will make adequate provision for contingencies and the ARAP/RAP will explicitly establish sources for all funds required. The ARAP/RAP will ensure that fund flows are compatible with the timetable for payment of compensation and provision of all other assistance. The costs of resettlement (compensation for land, structures, livelihood restoration, etc.) will be financed from the IDA Credit up to a maximum of US$900,000. Exact costs for resettlement are unknown at this stage of the project but will be determined in accordance with the Decree No. 84 on Compensation and Resettlement Management in Development Projects (2016) and the 2005 Technical Guidelines on Compensation and Resettlement in Development Projects and complemented by the WB OP 4.12 Involuntary Resettlement. 12.0 PARTICIPATORY CONSULTATIONS As discussed above, PAP and PAH will participate throughout the development and implementation process of land acquisition and the land donation process. PAP and PAH will be consulted by the relevant village councils or VRS, district and provincial authorities. The PAP and PAH will be invited to participate in public meetings in the early stages of the process and will be provided with reliable information on the proposed urban flood risk management infrastructure sub-projects, its impacts and proposed mitigation measures and economic restoration activities. Information publicly disclosed will also include cut-off dates for each sub-project, eligibility criteria and entitlements, modalities of compensation, complaints and grievance redress procedures. The PAP and PAH and different populations will be provided with opportunities to present their ideas and suggestions as inputs into the planning and implementation of the sub-projects. This will be accomplished through a series of participatory exercises and focus group discussion (FGD) with PAP and PAH, to ensure affected parties have a stake in the process. The PAP and PAH will also benefit from a dedicated consultation process during the preparation of the relevant ARAP/RAP. This will include consultation meetings at the beginning of the ARAP/RAP preparation process to discuss the potential impacts and possible mitigation measures, and prior to the finalization of the ARAP/RAP to ensure the PAP and PAH are in agreement with the mitigation measures proposed. Throughout, ARAP/RAP implementation, monthly meetings will be held with PAP and PAH to garner their feedback on how the process can be improved. There will also be face to face meetings with individual PAPs throughout the process, as well as a meeting to finalize and sign the compensation agreement. SEA DRM Project – Lao PDR 27 Resettlement Policy Framework As previously mentioned, PAP and PAH will be involved in various committees, including the grievance redress committee (to be established), which will ensure their participation in the decision-making process throughout various stages of the ARAP/RAP process, including preparation and implementation. Following sub-project completion, a survey could be undertaken by the MPWT DOW PMU amongst PAP and PAH to assess their level of satisfaction with the process and results of the ARAP/RAP. 13.0 MONITORING AND REPORTING Monitoring is a key component of the project implementation. As the DIA, MPWT DOW will appoint adequate full-time staff as part of the internal monitoring process. These staff will monitor the process of land acquisition or land donation in collaboration with local village or district authorities. If necessary, capacity building will likely need to be given on the monitoring process for designated GoL staff at the onset. Internal Monitoring Contents of the internal monitoring reports that will be issued on a monthly basis include: ▪ Payment and use of the funds for land acquisition compensation and restoration; ▪ Support to the vulnerable groups; ▪ Land readjustment and reallocation; ▪ Quality and quantity of newly reclaimed land; ▪ Schedule of the above activities; ▪ Implementation policies and rules in the resettlement plan; ▪ Participation and consultation of the affected people during the ARAP/RAP implementation; and ▪ Staffing, training, work schedule and resettlement operation at various levels. Quarterly monitoring visits will be undertaken as per specific activities in order to: ▪ Improve environmental and social management practices; ▪ Ensure the efficiency and quality of the environmental and social assessment processes; ▪ Establish evidence- and performance-based environmental and social assessment for the project; and ▪ Provide an opportunity to report the results of safeguards instrument impacts and proposed mitigation measures’ implementation. With regard to the sub-project implementation, the MPWT DOW DIA PMU will conduct monitoring activities during the feasibility studies and ESMP to determine the extent to which mitigation measures are successfully implemented. Monitoring will focus on three key areas: (i) compliance monitoring; (ii) impact monitoring; and (iii) cumulative impact monitoring. SEA DRM Project – Lao PDR 28 Resettlement Policy Framework External Monitoring In conjunction with internal monitoring by MPWT DOW staff, it will be important to include procedures for external monitoring and evaluation (M&E). The external M&E function aims to provide regular monitoring and evaluation of land acquisition and land donation for the project to assess whether objectives were achieved or not. Through formal surveys, interviews with PAP and PAH, FGD and other information collection methods, the external M&E function would look at the whole process of land acquisition or land donation for PAP and PAH. The external monitoring will also provide an early alarm function for the project management department and a complaint and grievance channel for PAP and PAH. External monitoring indicators will include: ▪ Progress: including the preparation of the ARAP/RAP, and implementation of compensation; ▪ Quality: including to what extent PAP and PAH are satisfied with compensation and restoration; ▪ Compensation Fund: including the payment and use of the funds for land acquisition compensation; ▪ Affected People: including PAP and PAH socio-economic situation before and after the project and economic restoration of the affected people; ▪ A qualified external monitoring entity will come from an independent organization, such as a civil society organization (Non-Profit Associations [NPA], CBO), academic research institute or consultancy in Lao PDR. The major responsibilities of the external monitoring organization will include: o Develop the ARAP/RAP in conjunction with the internal monitoring team; o Observe all the aspects of the ARAP/RAP and its implementation; provide M&E reporting to the World Bank through the PRO; and o Provide technical consulting services to the PRO in terms of information investigation and processing. 14.0 VOLUNTARY LAND DONATION (VLD) FRAMEWORK In accordance with community customary practices, villagers may choose to voluntarily contribute land or assets without compensation, under certain conditions. This may be justified if the sub-project provides a direct benefit to the affected people; provisions for voluntary land donations (VLDs) are included in Appendix A2 and a draft form in Appendix A3. However, most of the infrastructure projects that will be financed by the Project (e.g. riverside protection, dike, drainage canals, flood gates and the riverside park[s]) would not meet the principles for VLD as these are site-specific infrastructure. 1. Scope of voluntary land donation. VLD is applied for beneficiary communities with no involuntary land acquisition and based on community-driven demand. VLD will be accepted when small areas of private land and assets where the affected users of the assets and land have agreed to give their land and other assets as a voluntary contribution to the sub-project. No individual or family will lose more than 10% of their land, or other assets worth more than 800,000 LAK. Smallholder of residential land with area of 300 m 2 or less will not be allowed for VLD. Additionally, the land portion to be voluntarily donated shall be free of houses, structures or other fixed assets. The land to be donated should also be free of squatters, encroachers or SEA DRM Project – Lao PDR 29 Resettlement Policy Framework any other claims from other potential owners. For this type of sub-project, the DIA should prepare a report showing that the land users have been fully informed about the sub-project, and about their right to refuse to give their land and other assets without compensation. This report will be called the “Voluntary Land Donation Report”. 2. Voluntary contribution is an act of informed consent. Sub-project staff will assure that voluntary contributions are made with the prior knowledge that other options are available including compensation in replacement values, and are obtained without coercion or duress. PAPs have the right to refuse to donate assets and receive their entitlement and compensation for their land and assets lost. They will be fully informed of their rights and access to grievance mechanisms described in this RPF. The DIA social safeguards specialist must verify the voluntary nature of the donation well in advance of civil works. 3. Due Diligence. The voluntary land donation due diligence will be documented in the sub- project investment’s feasibility assessment report and will incorporate at a minimum the following: a) Verification and documentation that land required for the project is given voluntarily and the land to be donated is free from any dispute on ownership or any other encumbrances; b) Verification that no individual household will be impoverished by the land donation (i.e., no more than 10% of total land holding donated) will require that community development groups negotiate livelihood restitution measures such as reduction in operation and maintenance fees or sharing of cultivable land of other beneficiary community members; c) Verification that land donation will not displace tenants or bonded labor, if any, from the land; d) Meaningful consultation has been conducted in good faith with all potential land donors. Documented verification that land donors are in agreement with the sub-project and its benefits. Separate discussions to be held with women and community groups as required to facilitate meaningful participation; and e) Assurance that a community mechanism for investment activity implementation is operational and has a fair system of grievance redress, as well as a system for project monitoring and reporting; and f) Verification that the sub-project requiring the land is not site specific (dependant on the unique locational or physical characteristics of the land). 4. Documentation. Sub-project staff will document the voluntary land donation due diligence report in each beneficiary community that requires donation of private land. They will ensure completion of the written consent form for land donation (see sample in Appendix A3). The donation will be verified by two witnesses who are community leaders but not the direct beneficiaries of the investment activity, to ensure that the land was voluntarily donated without any form of duress. The voluntary land donation due diligence information will be verified during sub-project detailed design and updated as necessary. SEA DRM Project – Lao PDR 30 Resettlement Policy Framework 5. Voluntary Land Donation Monitoring. The voluntary land donation issues will be monitored by sub-project staff and the World Bank periodically review the land donation agreement forms and randomly interviewing the donors. During review missions, WB will verify that land donation due diligence has been conducted in accordance with the above procedures. The agreement form should be included in the RAP completion report as an annex with the original hard copy provided to the PAP or PAH for their reference. 6. Grievance Redress Mechanism. Anticipated grievances may relate to coercion for land donation or a donation of more than 10% of private land holding, leading to impoverishment. Any complaint will go to the grievance redress committee (GRC) established for the sub- projects. Procedure for handling the complaint describe in Section 10.0. 15.0 BUDGET TO IMPLEMENT THE RPF Implementation costs for the RPF will include land acquisition, relocation site development, compensation costs, allowances and administration costs, preparation of the RAPs, valuation of assets by a independent expert, and contingency. The cost for implementation is estimated to be between 1.7% and 3% (USD 500,000 to USD 900,000) of the total credit amount. This is based on an estimate that the project will acquire no more than ten individual households or commercial establishments (valued at between USD 20,000 and USD 30,000, and may possibly impact an additional 50 agricultural plots with an estimated value of between USD 5,000 and USD 10,000. An additional USD 50,000 to USD 100,000 has been included to cover expenses such as income restoration and moving allowances. These costs will be used to cover the resettlement costs of both formal and informal occupants of the impacted sites. However, as the exact locations and detailed designs of the sub-projects will not be known until implementation begins, it is expected that 3% of the value of the credit represents the upper limit of expenditure on resettlement costs of the project. SEA DRM Project – Lao PDR 31 Resettlement Policy Framework APPENDICES Appendix A1 Resettlement Plan Formats Abbreviated Resettlement Action Plan (ARAP): Annotated Document Contents and Information Requirements Introduction ▪ Project (one paragraph): refer to the RPF that covers the project and provides the policies and principles for the ARAP; ▪ Brief description of the sub-project development objectives and intended beneficiaries; and ▪ Describe the activities that will give rise to impacts that require “resettlement” (i.e. , anything that causes loss of land, assets or elements of PAP livelihood – not only physical relocation, but also, loss of trees, temporary relocation of roadside stall (kiosk), and comprised access. Census of PAP and Inventory of Assets ▪ Brief description of how the data was gathered (e.g., household survey); ▪ Table of PAP and PAH, contact details, affected livelihoods, assets, value of affected dwelling/structures/assets; and ▪ Brief comment about any significant differences, sources of vulnerability of PAP and different populations (ethnic peoples and vulnerable groups – women and female/male youth and children, the elderly and disabled, landless, and poor, etc.), or state that they are representative of the general socioeconomic profile of the country. Compensation to be Provided ▪ Forms of compensation to be provided (e.g., cash or in-kind); ▪ Description of the conditions for voluntary donation (if applicable), including: o Free, prior and informed consultation made of the PAP own volition and is un-coerced with the decision-making ability to withhold consent; o No severe impacts on living standards; no physical relocation and less than 10 % of PAP livelihood assets affected; o Availability of complaints and compensation procedure; and o Documentation and independent verification of the donation of land or assets. Consultation with Affected Persons ▪ Brief description of the general public disclosure communications to announce the project and invite comment; ▪ Subsequent consultations with known or self-identified PAP; o Alternatives discussed with PAP and the community; and o Dissemination of information about the cut-off date for registering as PAP; availability of a complaints/grievance mechanism (details in RPF Section 10.0). ▪ Arrangements for formal disclosure of resettlement instrument; availability for public disclosure, review and comment, and posted on MPWT and the World Bank websites. SEA DRM Project – Lao PDR A1-1 Resettlement Policy Framework Institutional Responsibilities for Delivery of Compensation ▪ Responsible agency; ▪ Method of notification to PAP; ▪ Timing of settlement (before the incidence of the loss to be compensated); ▪ Method of verification, disclosure and witnessing of the settlement (i.e., annex form for recording and witnessing handover of entitlement); and ▪ Process for handling complaints or grievances, appeals. Implementation Reporting and Monitoring ▪ Institutional responsibilities for reporting and monitoring of the ARAP; ▪ Independent participation in monitoring (e.g., CSOs, research institutes, etc.); and ▪ Summary report on consultation with the wider community (append attendance register to document). Timetable and Budget ▪ Time and task matrix; and ▪ Source and flow of funds: o Consultation costs; o Personnel costs; o Office overhead expenses; o Compensation funds; and o Monitoring and reporting costs. SEA DRM Project – Lao PDR A1-2 Resettlement Policy Framework Resettlement Action Plan (RAP): Annotated Document Contents and Information Requirements Introduction ▪ General description of the project in relation to policies and principles which inform the RAP; ▪ Describe sub-project development objectives and intended beneficiaries briefly; and ▪ Describe the activities that will give rise to impacts that require “resettlement” and comprised access. Scope ▪ Level of detail varies with the magnitude and complexity of the resettlement; ▪ Collect up-to-date and reliable information, including: o The proposed resettlement and its impacts on the displaced persons and other adversely affected groups; and o Legal issues involved in resettlement. ▪ Any issue described below which is not relevant to sub-project circumstances, should be explained. Description of the Sub-projects ▪ Short detailed narrative on sub-projects and activities; and ▪ Identification of the sub-projects and/or activities’ project area and footprint. Potential Impacts Identified ▪ Project component or activities that give rise to resettlement; ▪ Zone of impact and RoI of sub-projects; ▪ Alternatives considered to prevent (avoid) or minimize resettlement; and ▪ Mechanisms established to minimize resettlement, to the extent possible, during project implementation. Main Objectives of the Resettlement Program ▪ Defines the purpose and objectives. Socio-economic Studies ▪ Conducted in early stages of sub-project preparation and with the involvement of potentially displaced people, including: o The results of a census survey covering:  Current occupants of the affected area to establish a basis for the design of the resettlement program and to exclude subsequent inflows of people from eligibility for compensation and resettlement assistance; SEA DRM Project – Lao PDR A1-3 Resettlement Policy Framework  Standard characteristics of displaced households, including a description of production systems, labor, and household organization; and baseline information on livelihoods (i.e., production levels and income derived from both formal and informal economic activities) and standards of living including health status and well-being of the PAP and PAH;  The magnitude of the expected loss of assets (i.e., total or partial) and the extent of displacement, physical or economic;  Information on vulnerable groups or persons (OP/BP 4.12, paragraph 8) for whom special provisions may have to be made; and  Provisions to update information on the displaced PAP and PAH livelihoods and standards of living at regular intervals so that the latest information is available at the time of their displacement. ▪ Other studies describing the following: o Land tenure and transfer systems, including an inventory of common property natural resources from which PAP derive their livelihoods and sustenance, non-titled usufruct systems (i.e., fishing, grazing, or use of forest areas) governed by local recognized land allocation mechanisms, and any issues raised by different tenure systems in the sub- project footprint; o Patterns of social interaction in the affected communities, including social networks and social support systems, and how they will be affected by the sub-projects; o Public consultation and social services that will be affected; and o Social and cultural characteristics of displaced communities, including a description of formal and informal institutions (i.e., civil society organizations including CBO, NPAs) that may be relevant to the consultation strategy and to designing and implementing the resettlement activities. Legal Framework ▪ Findings of an analysis of the legal framework, covering: o The scope of the power of eminent domain and the nature of compensation associated with it in terms of both the valuation methodology and the timing of payment; o The applicable legal and administrative procedures, including a description of the remedies available to displaced persons (PAP and PAH) in the judicial process and the normal timeframe for such procedures, and any available alternative dispute resolution mechanisms that may be relevant to resettlement under the sub-projects; o Relevant law (including customary and traditional law) governing land tenure, valuation of assets and losses, compensation, and natural resource usage rights; customary personal law related to displacement; and environmental laws and social welfare legislation; SEA DRM Project – Lao PDR A1-4 Resettlement Policy Framework o Laws and regulations relating to the agencies responsible for implementing resettlement activities; o Gaps, if any, between local laws covering eminent domain and resettlement and the World Bank’s resettlement policy (OP/BP 4.12), and the mechanisms to bridge such gaps; and o Any legal steps necessary to ensure the effective implementation of resettlement activities under the sub-projects, including (as appropriate) a process for recognizing claims to legal rights to land (i.e., claims that derive from customary law and traditional usage – see OP/BP 4.12, paragraph 15 b). Institutional Framework ▪ Findings of an analysis of the institutional framework, covering: o Identification of agencies responsible for resettlement activities and CSOs that may have a role in project implementation; o Assessment of the institutional capacity of such agencies and CSOs; and o Any steps that are proposed to enhance the institutional capacity of agencies and CSOs responsible for resettlement implementation. Eligibility ▪ Definition of displaced persons (PAP and PAH) and criteria for determining their eligibility for compensation and other resettlement assistance, including relevant cut-off dates. Valuation of Land ▪ Methodology to be used in valuing losses to determine their replacement cost; and a description of the proposed types and levels of compensation under local law and such supplementary measures as are necessary to achieve replacement cost for lost assets. Resettlement Measures ▪ Description of the packages of compensation and other resettlement measures that will assist each category of eligible displaced persons (PAP and PAH) to achieve the objectives of the policy (see OP/BP 4.12, paragraph 6). In addition to being technically and economically feasible, the resettlement packages should be compatible with the cultural preferences of the displaced persons, and prepared in consultation with them. Site Selection, Site Preparation, and Relocation ▪ Alternative relocation sites considered and explanation of those selected, covering: o Institutional and technical arrangements for identifying and preparing relocation sites, whether urban or rural, for which a combination of productive potential, locational advantages, and other factors is at least comparable to the advantages of the old sites, with an estimate of the time needed to acquire and transfer land and ancillary resources; SEA DRM Project – Lao PDR A1-5 Resettlement Policy Framework o Any measures necessary to prevent land speculation and influx of ineligible persons at the selected sites; o Procedures for physical relocation under the sub-projects; including timetables for site preparation and transfer; and o Legal arrangements for regularizing tenure and transferring titles to resettlers. Housing, Infrastructure, and Social Services ▪ Plans to provide (or, to finance PAH provision of) housing, infrastructure (e.g., water supply, feeder roads), and social services (e.g., schools, health services, etc.); plans to ensure comparable services to host populations; any necessary site development, engineering, and architectural designs for these facilities. Environmental Protection and Management ▪ Description of the boundaries of the relocation area; and an assessment of the environmental impacts of the proposed resettlement and measures to mitigate and manage these impacts (coordinated as appropriate with the ESMP of the main investment requiring the resettlement). Community Participation ▪ Description of the strategy for consultation with and participation of PAH and hosts in the design and implementation of the resettlement activities; ▪ Summary of the views expressed and how these views were taken into account in preparing the resettlement plan; ▪ Review of the resettlement alternatives presented and the choices made by displaced persons regarding options available to them, including choices related to forms of compensation and resettlement assistance, to relocating as individual families or as parts of pre-existing communities or kinship groups, to sustaining existing patterns of group organization, and to retaining access to cultural property (e.g., places of worship, pilgrimage centers, cemeteries); and ▪ Institutionalized arrangements by which displaced people (PAP) can communicate their concerns to project authorities throughout planning and implementation, and measures to ensure that such different populations (ethnic peoples and vulnerable groups – women and female/male youth and children, the elderly and disabled, landless, and poor, etc.), are adequately represented. SEA DRM Project – Lao PDR A1-6 Resettlement Policy Framework Integration with Host Populations ▪ Consultations with host communities and local governments; ▪ Arrangements for prompt tendering of any payment due the hosts for land or other assets provided to PAH; ▪ Arrangements for addressing any conflict that may arise between PAH and host communities; and ▪ Any measures necessary to augment services (e.g., education, water, health and productive services) in host communities to make them at least comparable to services available to PAH (i.e., resettlers). Grievance Procedures ▪ Affordable and accessible procedures for third-party settlement and disputes arising from resettlement; such grievance mechanisms should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms. Organizational Responsibilities ▪ Organizational framework for implementing resettlement, including identification of agencies responsible for delivery of resettlement measures and provision of services; ▪ Arrangements to ensure appropriate coordination between agencies and jurisdiction(s) involved in implementation; and ▪ Measures (including technical assistance) needed to strengthen the implementing agencies’ capacity to design and carry out resettlement activities; provisions for the transfer to local authorities or PAH (resettlers) themselves of responsibility for managing facilities and services provided under the project and for transferring other such responsibilities from the resettlement implementing agencies, when appropriate. Implementation Schedule ▪ Schedule covering all settlement activities from preparation through implementation, including target dates for the achievement of expected benefits to PAH (resettlers) and hosts and terminating the various forms of assistance. The schedule should indicate how the resettlement activities are linked to the implementation of the overall project. Costs and Budget ▪ Tables showing itemized cost estimates for all resettlement activities, including allowances for inflation, population growth, and other contingencies; timetables for expenditures; sources of funds; and arrangements for timely flow of funds; and funding for resettlement, if any, in areas outside the jurisdiction of the implementing agencies. Monitoring and Evaluation ▪ Arrangements for monitoring and evaluation activities by the implementing agency, supplemented by independent monitors as considered appropriate by the World Bank, to ensure complete and objective information; SEA DRM Project – Lao PDR A1-7 Resettlement Policy Framework ▪ Performance monitoring indicators to measure inputs, outputs, and outcomes for resettlement activities; ▪ Involvement of the displaced persons (PAP and PAH) in the monitoring process; and ▪ Evaluation of the impact of resettlement for a reasonable period after all resettlement and related development activities have been completed using results of resettlement monitoring to guide subsequent implementation. SEA DRM Project – Lao PDR A1-8 Resettlement Policy Framework Appendix A2 Land Donation Protocols The process will include the following: 1. Official information and initial assessment. Determining the appropriateness of VLD in the circumstances of the project. Activities that will require VLD as a result of the screening process and the land study specifically the Voluntary Land Contribution Report sub-project staff will inform the village head and villagers or land owners through official notification on where the activities will be implemented that will require VLD. Record and document the reasons why donation of land is appropriate for the project. The DIA will take into consideration the following details for such documentation: o What the land will be used for; o How much land the project will require on both a permanent and temporary basis; o How much of the land will be donated; o What alternatives to donation exist (e.g., right of use, right of way); o The terms of the donation; o The identities of the parties who intend to donate; o The beneficiary of the donation; and o Any details that are relevant to why donation may be appropriate. Preparation of land survey map and schedule of land acquisition 2. After collected the information related to land and assets which will be affected by sub-project implementation, the responsible official, with assistance from the related persons, will prepare a land survey map and a schedule of land acquisition. The land survey map shows each parcel of land that will be affected, and each parcel of land should be given a code (a letter or number). Figure A2.1 Example of land survey map. 15 18 16 17 19 House Land boundary project land 18 Land parcel number SEA DRM Project – Lao PDR A2-1 Resettlement Policy Framework 3. Verification of voluntary donations. The following conditions will be confirmed by the Committee including the Village Chief. a) Confirmation that affected people agree to donate land or asset, based on a face to face meeting; b) No one would lose more than 10% of the total productive assets; c) The total land holding of the affected person should be 200 m 2 or more; and d) No physical relocation necessary. 4. Initial Village Consultation. Under the village head leadership, a consultation process will be launched to invite different interest parties, including land owners to discuss and ratify the appropriateness of the voluntary basis of land donation. 5. Transferring and formalizing the land. Process for land donation includes very clear procedures that explain the process that should be followed to transfer the land, and appropriate ways to formalize the respective transfer. The process includes consideration of the legal and administrative requirements based on the legal framework of Lao PDR. The process will describe a clear and transparent decision-making process. 6. Verification process (surveys) to identify land ownership and use. Village Chief and Technical Assistant will ensure that the land study will include specific surveys to understand the type of land rights that exist in the sub-project area, and to identify any particular issues relating to land ownership and use. The specific surveys must be conducted on each parcel of land proposed for donation to identify: a) The owner or owners of the land; b) The users of the land, or any parties that occupy the land (either physically or through ownership of an asset or conduct of livelihood or business activities on the land); c) Any competing claims of ownership or use; d) Structures and assets on the land; and e) Any encumbrances on the land. 7. It is important to: (i) identify the right that is being transferred (an ownership right, a use right, a right of way, etc.); and (ii) check whether the transferee actually has the right s/he claims to have. In many circumstances where careful due diligence has not been carried out, significant conflict has arisen at a later stage when another party claims that they have the same or a competing right. In some circumstances – but not all – the transferee will have documentary evidence of such right. Where no such evidence exists, the due diligence can establish rights by speaking with local community officials and neighbours. 8. Public consultations and disclosure. The decision to donate must be taken on the basis of a full understanding of the sub-projects and the consequences of agreeing to donate the land. Accordingly, the parties that will be affected by the donation (the owners and users of the land) must be provided with accurate and accessible information regarding what the land will be used for, for how long, and the impact the donation will have on them and their families. It is important that prior written notification indicating the location and amount of land that is sought be provided and that its intended use for the sub-project is disclosed. SEA DRM Project – Lao PDR A2-2 Resettlement Policy Framework 9. Where the intention is to deprive the parties affected by the donation of the land permanently, or for a significant length of time, this must be made clear. It should be noted that in many communities the concept of alienation of land is uncommon and difficult to understand, and care needs to be taken to ensure that the implications of this are fully understood. It is also important to decide who else should be consulted about the proposed donation; for example, spouses and older children. 10. There should be a clear agreement as to which party will pay the costs associated with the donated land. This could include measurement costs, documentation and notarial fees, transfer taxes, registration fees. It should also include the costs of re-measuring/re-titling the transferee’s remaining land and any new documentation relating to it. Establishing informed consent 1. The Village Chief, in coordination with sub-project staff, verifies the informed consent or power of choice by the people who would donate land or an asset. In particular, the following will be verified and documented in the voluntary donation report: a) What the land is going to be used for, by whom and for how long; b) That they will be deprived of the ownership or right to use the land, and what this really means; c) That they have a right to refuse to donate the land; d) Whether there are alternatives to using this land; e) What they will need to do to donate the land (e.g., execute documents, get spousal consents, pay taxes); f) The effect of the donation on their family, and what they can do if they (or their family or heirs) want the land back; and g) All conditions provided in the paragraph 2 above. 2. The right to refuse must be a legitimate right, unconditional, and the potential transferee must be capable of exercising it in the local community and political context. For this reason, it is important to be sure that the decision to donate is undertaken without coercion, manipulation, or any form of pressure on the part of public or traditional authorities. For collective or communal land, donation must be based upon the informed consent of all individuals using or occupying the land. 3. Proper documentation. During the VLD process for sub-project investments, it is important to distinguish between: (a) the agreement to donate the land; and (b) the document that carries out and evidences the legal transfer of the land. While it is important to have evidence of an intention and agreement to donate the land, it is equally important to ensure, where required and appropriate, that the land is legally transferred. While the process relating to the legal transfer of the land is frequently complicated and time consuming, it must be addressed. [In specific circumstances, for example where the land is being transferred to the community, it may not be necessary to legally transfer the land. However, experience indicates that lack of formal transfer can create significant uncertainty in the future, which impacts on the sustainability of the infrastructure and services, and can have a negative effect on community relations.] (Appendix A3) SEA DRM Project – Lao PDR A2-3 Resettlement Policy Framework 4. Village Chief and sub-project staff should: a) Identify the appropriate documentation, including the agreement to make the transfer and any legal documentation that may be required; b) Ensure that the agreement: ▪ Refers to the consultation has taken place; ▪ Sets out the terms of the transfer; ▪ Confirms that the decision to transfer was freely made, and was not subject to coercion, manipulation, or any form of pressure; ▪ Attaches an accurate map of the land being transferred (boundaries, coordinates); ▪ Sets out who will bear the costs of the transfer (e.g., notarial fees, taxes, title issues) and documenting the residual land rights; c) Ensure that all necessary parties sign the documents, including obtaining consent from spouses and children over a certain age; d) Ensure that the transfer and title is registered or recorded; and e) Ensure that the land remaining after the donated land is excised is properly titled, registered or recorded. 5. It is also important to maintain a record of the process that has been followed. Such documents could include the following: a) The notification indicating the location and amount of land that is sought and its intended use for the project, with a record of when and where this was made public; b) Records of the consultations that were held and what was discussed; c) A copy of the due diligence that was conducted; d) Copies of each of the formal statements of donation, establishing informed consent as described above, and signed by each owner or user involved; e) Copies of all documents, registrations or records evidencing the legal transfer of the land; and f) A map, showing each parcel of land. The Project Management Unit should maintain a record with documentation for each parcel of land donated. Such documentation must be available for World Bank review, and for review in relation to any grievances that may arise. SEA DRM Project – Lao PDR A2-4 Resettlement Policy Framework Grievance redress arrangements. The sub-project specifies means by which donors (and, potentially, persons whose use or occupancy was not recognized in the transfer of land) may raise grievances, and measures to ensure consideration of, and timely response to, grievances raised. The grievance process includes participation of reviewers not directly affiliated with the project implementing agency. The grievance process imposes no cost upon those raising grievances, and participation in the grievance process does not preclude pursuit of legal remedies under the laws of the country. SEA DRM Project – Lao PDR A2-5 Resettlement Policy Framework Appendix A3 Voluntary Land Donation Form SEA DRM Project – Lao PDR A3-1 Resettlement Policy Framework Voluntary Land Donation Form Province / Region: District: Village: Sub-project ID: Name of land owner: ID Number: Beneficiary of the project: Y/N Sex: Age: Occupation: Address: Description of land that will be Area affected: Total Ratio of land Map code, taken for the project: landholding affected to if available: area: total land held: Description of annual crops growing on the land now and project impact: Details Number  Trees that will be destroyed  Fruit trees  Trees used for other economic or household purposes  Mature forest trees  Other Describe any other assets that will be lost or must be moved to implement the project: Value of donated assets: 1. By signing or providing thumb-print on this form, the land user or owner agrees to contribute assets to the sub-project. The contribution is voluntary. If the land user or owner does not want to contribute his/ her assets to the project, he or she should refuse to sign or provide thumb print, and ask for compensation instead. Date: ............................... Date: ............................... District PMO representative’s signature Affected persons’ signature (for PAH, signatures of both husband and wife are required) SEA DRM Project – Lao PDR A3-2 Resettlement Policy Framework