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1 Social Monitoring Report 1 st Semi-Annual Report July 2018 VIE: GMS Southern Coastal Corridor Project Prepared by Cuu Long Corporation for Investment, Development and Project Management of Infrastructure (CIPM) for the Asian Development Bank.

VIE: GMS Southern Coastal Corridor Project€¦ · The Southern Coastal Corridor Project (the Project) comprised originally (i) rehabilitation and construction of 96.1 km of national

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Page 1: VIE: GMS Southern Coastal Corridor Project€¦ · The Southern Coastal Corridor Project (the Project) comprised originally (i) rehabilitation and construction of 96.1 km of national

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Social Monitoring Report

1st Semi-Annual Report

July 2018

VIE: GMS Southern Coastal Corridor Project

Prepared by Cuu Long Corporation for Investment, Development and Project Management of

Infrastructure (CIPM) for the Asian Development Bank.

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This social monitoring report is a document of the borrower. The views expressed herein do not

necessarily represent those of ADB's Board of Directors, Management, or staff, and may be

preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of

or reference to a particular territory or geographic area in this document, the Asian Development Bank

does not intend to make any judgments as to the legal or other status of any territory or area.

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Loan 2372-VIE/Grant 0095-VIE and Additional Loan 2988-VIE/Grant 0337-VIE: GMS

Southern Coastal Corridor Project

INTERNAL MONITORING REPORT

Second Quarterly 2018

I. Introduction:

1. The Southern Coastal Corridor Project (the Project) comprised originally (i) rehabilitation and

construction of 96.1 km of national highways from Ca Mau to Rach Gia (the first stage of the Project)

and (ii) implementation of HIV/AIDS and human trafficking awareness and prevention program. Loan

2372-VIE and Grant 0095-VIE finance civil works and consulting services for 43.0 km of the project

road and HIV/AIDS program, and KEXIM finances $120 million for civil works and consulting services

for 53.1 km of the project road.

2. An additional loan of $26.0 million from ADB Special Funds resources (Loan 2988-VIE) and

additional grant of $12.0 million from DFAT (Grant 0337-VIE) were approved on 11 February 2013 to

finance (i) enhanced soft ground treatment measures, (ii) cost overrun in (a) land acquisition and

resettlement (LAR) and (b) general price escalation, and (iii) detailed design and implementation

support (DDIS) for an ensuing project for construction of a 102 km road section from Rach Gia to Ha

Tien (the second stage of the Project).

3. The highway traverses 3 wards, 18 communes, 4 towns, 5 districts and 1 city in Ca Mau and Kien

Giang provinces. The scope of the Project includes the construction of 2 lanes (i.e., 1 lane each way)

for the whole Project road and several bridges over waterways and canals.

4. Major objectives of the Project are to promote economic activities and facilitate trade between

Cambodia, Thailand, and Viet Nam and to improve the prospects for poverty reduction along the

Southern Economic Corridor. The Project will contribute towards economic diversification and

development along the Southern Coastal Corridor (a 924 kilometer road along the Gulf of Thailand from

Bangkok through Thailand, Cambodia and ending at Nam Can in southern Viet Nam) by reducing

transport costs and improving access for the movement of goods and people between GMS countries,

specifically Cambodia, Thailand and Viet Nam. The Project will (i) reduce transport times and costs and

induce more efficient movement of passengers and goods between GMS countries and within the

Project affected provinces, and (ii) provide improved road connectivity between rural areas and

provincial centers.

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II. Land Acquisition and Resettlement

5. Based on the final engineering design of the road, the detailed measurement survey (DMS) of

losses was conducted in 2011-2012. The total of affected households - according to the DMS results

was 2,622. The resettlement plans for the road sections were updated and submitted to ADB for review

and approval.

Table 1: Submission and Approval of Updated Resettlement Plans (URPs)

Road Section URP Dates of URP submission

by CL CIPM

Date of URP approval

by ADB

Total No. of AHs (HH)

Minh Luong- Thu Bay March 2012 20 March 2012 717 Thu Bay - Nga Bac June 2010 11 July 2010 612 Nga Bac - Ca Mau March 2011 21 February 2011 880 Xa Xia - Ha Tien March 2013 21 April 2012 413

Total of Affected Households 2622

6. However, during the construction activities, due to the divisions of the affected households to

more than one household (e.g., one household divided into one or two households) or some minor

changes of the road design, the number of affected households was changed. The final number of

affected households by the Project is 2,685 (63 HHs increased) including 1,754 households in Kien

Giang province and 931 households in Ca Mau province.

Table 2: Final Number of the Affected Households by the Project

Provinces Districts Affected Households Total No. of HHs who lost from 10% of

total production land holding (HH) No. of relocation households (HH)

No. of vulnerable households (HH)

Kien Giang

Xa Xia – Ha Tien 428 560

135

375 Minh luong – Thu Bay 723

Thu Bay – Nga Bac 603 Ca Mau Nga Bac – Ca Mau 931 364 85 232

Total 2685 924 220 607

7. The acquired land areas are 1,252,966 m2 of Kien Giang province and 1,444,278 m2 of Ca Mau

Provinces. Of the total affected land, 35,7% (963,363.3 m2) is agricultural land and 1.7% (47,067.12 m2)

is residential land. Numbers of households who had only agricultural land and residential land affected

are 446 households and 577 households, respectively. There are 1,662 households who have both

residential land and agricultural land affected.

8. Among 607 vulnerable affected households, 239 households is female headed households, 363

was poor households, and 5 households headed by disable/child. There are 1,144 severely affected

households, of which 924 households who lost from more than 10% of total production landholding of

the household and 220 relocation households.

9. There is no ethnic minority reside in the project area. The Project (Loan 2372 and Loan 2988)

is categorized as Category A for Involuntary Resettlement as per the ADB's SPS, 2009. Originally, the

Project was categorized as Category B for Indigenous Peoples because there are Hoa (Chinese people)

in Ha Tien district (Kien Giang Province). However, according to the Government's Regulation on Ethnic

Minorities in Vietnam and ADB's definition on Indigenous Peoples, the Hoa is no-long considered as

ethnic minority as they are totally well integrated in the society and there is no difference of the Hoa and

the Kinh (the majority ethnic) in all aspects.

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III. Progress of Land Acquisition and Resettlement to 30 June 2018

3.1. Compensation and Assistance

10. Among the total of 2,685 affected households, 2,680 households were paid the compensation

and assistance as of 30 June 2018, accounting for 99.81%. The remaining households include five (05)

households (An Minh District, Kien Giang province) who are with internal disputes on the affected land

and the cases are being settled by the district court (the affected land was handed-over by the

households in 2011 and the compensation and assistance amounts were deposited in the Provincial

Treasury); and nine (09) households (Thoi Binh District, Ca Mau province) who were partially received

the assistance amount due to lack of resettlement budget. The status of compensation and assistance

payment is described in the Table 3 below.

Table 3: Status of Compensation and Assistance Payment

Provinces Districts No. of

AHs

Compensation and Assistance Payment

No. of AHs who were

fully received

compensation and

assistance payment

No. of AH who were

not received

compensation and

assistance payment

No. of AH who were not

fully received

assistance payment

Kien Giang Ha Tien 428 428 0 0

An Bien 624 624 0 0

Chau Thanh 99 94 5 0

An Minh 603 607 0 0

Ca Mau Thoi Binh 931 922 0 9

11. The remaining five households (An Minh District, Kien Giang province) who are with internal

disputes on the affected land, CL CIPM is following up with the district court on the court decisions.

Once the decisions are made by the court for the cases, CL CIPM will coordinate with the District

Board for Compensation and Site Clearance to make compensation for the households following the

decisions of the court.

12. With regarding to the nine households in Ca Mau province who have not yet been paid for the

assistance, one one-hand, CL CIPM is discussing with the Provincial People Committee of Ca Mau

Province (PPC) on the possibility of advancing the amount by the PPC to make payment for the

households first then CL CIPM will pay back to the PPC once the Withdrawal Applications 7,8,9 have

been approved by ADB; on the other hand, CL CIPM is working with the MOT, MOF and ADB for the

Withdrawal Applications get approval soon.

13. To end of June 2018, compensation budget disbursed by CL CIPM to the provinces (through the

Provincial Department of Transport - PDOT) is as below

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Table 4: Resettlement Budget Disbursement and Liquidation

Provinces Road

Sections

Compensation and Assistance

Total Amount Needed (VND)

Total Amount Transferred to PDOTs (VND)

Total Amount that Needs to

be Transferred to PDOTs

(VND)

Unused Amount by

PDOT (VND)

Notes

Kien Giang

Xa Xia - Ha Tien & Thu Bay - Nga Bac

187,180,808,787 184,286,827,177 2.893.981.610

Minh Luong - Thu Bay

109,487,692,638 110,376,401,462 1.200.000.000 2,387,000,000

Although the unused amount is VND 2,387 billion of this Minh Luong – Thu Bay road section, the amount cannot be used to pay for the items of other road sections because, according to the Laws of Budget Management - this budget amount was in 2016 Budget Year Plan. Unused amount has to be paid back to the Government but cannot be used for the items that have been planned in the Budget Year 2018.

Ca Mau Nga Bac - Ca Mau

336,772,757,000 334,400,000,000 2,372,757,000

Total 623,310,625,994 618,040,824,639 6.465.757.000 2,387,000,000

14. Affected land was fully handed over to the Project in December 7th 2013 by Kien Giang and Ca

Mau provinces

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3.2. Relocation

15. Of 2,685 affected households, 220 households had to relocate, accounting for 8.19%. Most of these

households (150 households representing 68.18%) opted for receiving the allowance and self-

relocating. The remaining households (70 households) chose to resettle at the resettlement site (RS)

of the Project.

Table 5: Number of households who have to relocate by Road Sections

Provinces Districts Number

of AHs

Number of

AHs who

have to

relocate

Of which

Number of AHs

who relocate at the

resettlement sites

Number of

AHs who

self-relocate

Kien Giang

Xa Xia -Ha Tien 429 39 0 39

Minh Luong – Thu Bay 752 44 3 41

Thu Bay – Nga Bac 612 52 0 52

Ca Mau Nga Bac – Ca Mau 880 85 15 70

Total 2673 220 18 202

16. All of these households were allocated the land plot at the RS with the Land Use Rights

Certificate. The RS of the Project in Kien Giang and Ca Mau provinces were developed with full basic

infrastructure such as internal road, water for daily and domestic activities, electricity; and drainage

system. The number of households who have to relocate disaggregated by districts is shown in the

below Table 6. It is noted that the RS prepared in Ca Mau province with full basic infrastructure but no

affected households has constructed new house in. The reasons are: (i) they have another land plot to

re-build their affected house; (ii) they find a place that is more suitable for their business operation; and

(iii) they reserve the plot for their son/daughter.

Table 6: Number of households who have to relocate by Districts and Province

Provinces Districts

Numbe

r of

AHs

Number of AHs who

have to relocate

Of which

Number of AHs who

relocate at the resettlement

sites

Number of AHs who

self-relocate

Kien

Giang

Ha Tien 428 39 0 39

An Bien 624 41 0 41

Chau Thanh 99 3 3 0

An Minh 603 52 52 0

Ca Mau Thoi Binh 931 85 15 70

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3.3. Income Restoration

17. IRP in Kien Giang Province (IRP Road Sections). Total number of registered households for

IRP Road Section in Kien Giang province is 895 including 165 households participated in the

demonstration stage and 730 households took part in the full-implementation stage. IRP inputs

(materials for agricultural extension and tools for non-agricultural business development) were provided

to all IRP participating households. Trainings for the households were organized by the technical

agencies (Agricultural Extension, Fishery, Occupational Centers, etc.), and service providers. The

training participants were provided the documents to use in IRP implementation. However,

refresher/following-up trainings have not yet been carried out as in the agreed IRPs due to the lack of

funds.

18. IRP in Kien Giang Province (Tac Cau-Xeo Ro Ferry). Total number of households who

registered for the Tac Cau – Xeo Ro Ferry IRP in Kien Giang province is 512. The IRP inputs were

provided to 332 households in February 2017, accounting for 63.87%. The remaining households (180

households) have not yet been provided any inputs and trainings due to the unavailability of fund.

19. IRP in Ca Mau Province. Total number of registered households for IRP Ca Mau Province is

725. The IRP inputs were provided to all the households in March 2017. However, there are eight (08)

households where the provided piglets by the IRP during demonstration phase died because of the

diseases and they have not yet been re-provided with the input. In addition, due to the unavailability of

fund, trainings have not yet been organized as required in the agreed IRP to the participating

households.

20. The VAT issue: As the inputs for IRP participating households (IRP for affected households

by Xeo Ro Ferry closure) were deducted by 10% to pay for the VAT, CL CIPM discussed with Kien

Giang Province IRP Steering Board in May 2018 and agreed that this amount must be provided back

to the households. The amount has been included in the budget that Kien Giang Province advanced

to the Provincial IRP Steering Board in September, 2018 to complete the IRP. So, the inputs for IRP

participating households that were deducted now is being made to the IRP participating households.

21. The IRP budget disbursement and Liquidation to end of June 2018 is as below:

Table 7: Budget for IRP Implementation

IRPs Required Budget

(VND)

Transferred

Amount (VND)

Required Budget to

Complete the IRPs

(VND)

IRP Kien Giang Road Sections 13,047,592,686 10,074,681,992 2,972,910,694

IRP Kien GiangTac Cau - Xeo

Ro Ferry 5,786,714,603 3,120,318,008 2,666,396,595

IRP Ca Mau Province 11,251,834,072 9,630,213,551 1,621,620,521

Total 30,086,141,361 22,825,213,551 7,260,927,810

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3.4. Grievance Redress Mechanism

22. Regarding to land acquisition and resettlement, there is one outstanding grievance of the

household (Household Tran Van Nam in Thoi Binh District, Ca Mau province) to the construction

contractor. Due to construction activities, an area of land of the household was affected. The

household and the construction contractor could not reach an agreement on the compensation

amount for the affected land area. The household agreed for the construction activities to continue but

lodged his complaint to the district court. It is expected that the case would be settled in December,

2018.

23. With the IRP, the eligible households to IRP Kien Giang province (Tac Cau- Xeo Ro Ferry)

who have not yet been provided IRP assistance are sending complaint letters to various local

government agencies (District People's Committees, Kien Giang Provincial People's Committee, Kien

Provincial People's Council, Kien Giang Provincial DOLISA, and Kien Giang Provincial Delegation to

the National Assembly) requesting the IRP to be implemented for them. The households also sent

their representatives to directly meet with the concerned agencies to express their strong request for

the IRP to be implemented.

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IV. Compliance with the Loan Covenants

24. In term of resettlement planning, the project is in compliance with the Loan Covenants.

Resettlement Plans were prepared and updated reflecting the principles and requirements of the

Government's policies and ADB's SPS (2009). Compensation, assistance, land acquisition and

relocation were only commenced after the updated resettlement plans for the road sections had been

accepted by ADB.

25. Compensation for affected land and assets was made by replacement cost. Qualified and

independent replacement cost appraiser was engaged by the provinces to conduct the replacement

cost survey. All assistance and allowances as indicated in the updated resettlement plans were

provided to the affected households, except nine households in Ca Mau province (due to the lack of

budget).

26. Income Restoration Program was prepared and is being implemented to the severely affected

households and vulnerable affected households.

27. The grievance redress mechanism was established in consultation with affected households,

communities and local authorities and it works effectively.

28. However, two partly compliant issues of the Project on land acquisition and resettlement

include (i) the shortage of the budget to complete the assistance to nine households and to complete

the IRP for the severely affected households and vulnerable affected households in Kien Giang

Province. CL CIPM is working with relevant agencies, including ADB to bring the Project backs to full

compliance.

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V. Action Plan to Solve the Outstanding Issue

29. Below is the action plan to solve the outstanding issues regarding to land acquisition and

resettlement of the Project. The action plan has been discussed and agreed with Ca Mau and Kien

Giang PPCs and the Provincial IRP Steering Committees.

Table 8: Action Plan to Complete the Outstanding Issues

No Issues Actions Due Date Responsible Agencies

1 Complete assistance for nine households in Ca Mau Province

a. Discuss with Ca Mau PPC on the possibility of advancing the amount by the PPC to pay to the households.

b. Work with MOT, MOF and ADB to complete all the paper works for the Withdrawal Applications 7,8,9 get approval by ADB to have budget to pay to the PPC (if the PPC advances the amount)

30 September 2018

30 December 2018

CL CIPM

Ca Mau PPC

CL CIPM

2 Complete IRP in Ca Mau and Kien Giang Province

a. Discuss with Ca Mau Provincial IRP Steering Committee on completion of the IRP (budget is sufficiently disbursed)

b. Discuss with Kien Giang PPC on the possibility of advancing the amount by the PPC to complete the IRP.

31 August 2018.

31 August 2018

CL CIPM

Ca Mau IRP Steering Committee

CL CIPM

Kien Giang PPC

3 Decisions of Courts on the grievances

a. Follow up with the courts on the court decisions.

b. Coordinate with the district boards for compensation and site clearance to make payment to the households based on the court decisions.

December 2018.

January, 2019

CL CIPM

Relevant district boards for compensation and site clearance

30. Once this Internal Resettlement Monitoring Report has been accepted by ADB, CL CIPM will

share it to Kien Giang and Ca Mau PDOTs and Provincial IRP Steering Committees. The documents

will be posted in public places such as communal headquarter offices, village meeting halls, office of

district boards for compensation and site clearance, office of PDOTs, etc. The Report will also be

posted to ADB and CL CIPM websites.

31. The next semi-annual internal resettlement monitoring report will be submitted to ADB on 15

January, 2019.

32. As the IRPs in Kien Giang and Ca Mau provinces will be completed in December 2018 and the

compensation/assistance for the remaining households (05 in Kien Giang Province and 09

households in Ca Mau province) will be completed at the same time, post-resettlement evaluation will

be carried out by CL CIPM in December 2018.

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VI. Appendices

- Letters to Ministry Official Transport (MOT):

+ The letter No. 1952/CIPM-IMC dated 02/08/2018 of Cuu Long CIPM, No extension the Grant 0095-

VIE (SF) of the Southern Coastal Corridor Project (SCCP1).

- Letters Cuu Long CIPM to Ca Mau Province:

+ The letter No. 1731/CIPM-IMC dated 12/07/2018, refunding the borrowed capital for payment the

additional remain quantity of the Land acquisition and resettlement of the Southern Coastal Corridor

Project (SCCP1) in Ca Mau province.

- Letters Ca Mau Province to Cuu Long CIPM.

+ The letters no. 16/GPMB dated 23/03/2018 for Provide assistance for affected business for the Land

acquisition and resettlement of the Southern Coastal Corridor Project (SCCP1) in Ca Mau province.

+ The letter No. 5407/UBND-XD dated 18/07/2018 for kindly request of the Cuu Long CIPM.

+ The letter No. 26/GPMB dated 08/08/2017 for demand of remain fund for the Land acquisition and

resettlement the Land acquisition and resettlement.

- Letters Cuu Long CIPM to Ca Mau Province.

+ Letter no. 2019-IMC dated 10/08/2018 for explanation for the liquidation document to be 25 billion

VND of clause of refund for the Land acquisition and resettlement of the Land acquisition and

resettlement.

+ Letter No. 2025/CIPM-IMC 13/08/2018 for request to borrow the fund for carry out additional remain

quantity of IRP of the Southern Coastal Corridor Project (SCCP1) in Kien Giang province.

+ The letter No. 3541/BTC-QLN dated 28/03/2018 for Withdrawal application No. 0007, 0008, 0009

liquidation of funds of the Land acquisition and resettlement and income restoration program of the

Southern Coastal Corridor Project (SCCP1) in Ca Mau province.

- Letter SMEC Consultant to Cuu Long CIPM.

+ The letter No. SCCP. 4.56/3954 dated 06/08/2018 of SMEC Consultant for reply to Cuu Long CIPM´s

letter No. 1763CIPM/IMC for the invoice issue.

- Letter Cuu Long CIPM to ADB Bank.

+ The letter No. 2005/CIPM-CMC 09/08/2018 for Submission the benefit monitoring and evaluation

(BME) after completion and project completion report (PCR) for SCCP.

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