RESETTLEMENT PLAN (DRAFT ) by tzm16628

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									   MEKONG TOURISM DEVELOPMENT PROJECT


 LAO: LUANG NAMTHA AIRPORT IMPROVEMENT




       RESETTLEMENT PLAN (DRAFT)


             OFFICE OF THE PROVINCIAL GOVERNOR
PROVINCE OF LUANG NAMTHA, LAO PEOPLE’S DEMOCRATIC REPUBLIC

                       OCTOBER 2002




       THIS IS NOT A BOARD APPROVED DOCUMENT.
                                                                      Mekong Tourism Development Project
                                                       Resettlement Plan: LAO: Luang Namtha Airport Improvement




                                    TABLE OF CONTENTS
1.  Introduction..........................................................................................................1-1
  1.1.     Project Scope............................................................................................1-1
2. Scope Of Land Acquisition And Resettlement.....................................................2-1
  2.1.     Socio-Economic Profiles of APs................................................................2-1
  2.2.     Perception towards Resettlement .............................................................2-2
  2.3.     Census and Inventory of Losses...............................................................2-3
  2.4.     Proposed Land Allocation and Resettlement Site Development...............2-8
3. Project Principles and Objectives ........................................................................3-1
  3.1.     Legal Framework ......................................................................................3-1
  3.2.     Project Principles and Objectives..............................................................3-2
4. Eligibility And Entitlement ....................................................................................4-1
  4.1.     Project Affected People (AP) ....................................................................4-1
  4.2.     Projects Impacts and Entitlements............................................................4-1
5. Consultation And People’s Participation..............................................................5-1
  5.1.     During RP Preparation ..............................................................................5-1
  5.2.     During RP Implementation ........................................................................5-1
6. Grievance Redressals .........................................................................................6-1
7. Implementation Arrangements ............................................................................7-2
  7.1.     National Tourism Authority of Laos PDR (NTAL)......................................7-2
  7.2.     Office of the Provincial Governor ..............................................................7-2
  7.3.     Compensation and Resettlement Committees..........................................7-2
  7.4.     Local Administrative Authorities ................................................................7-3
  7.5.     Lao Women’s Union and Local-Based Organizations...............................7-3
  7.6.     Village Consultative Group........................................................................7-4
  7.7.     Project Supervision Consultants ...............................................................7-4
8. Resettlement Strategies ......................................................................................8-1
  8.1.     Consultation and Disclosure of Resettlement Documents ........................8-1
  8.2.     Updated RP...............................................................................................8-1
  8.3.     Payment to APs and Assistance During Relocation .................................8-1
9. Implementation Schedule ....................................................................................9-1
10. Supervision, Monitoring and Evaluation ............................................................10-1
  10.1.    Internal Monitoring ..................................................................................10-3
  10.2.    External Monitoring and Post-Evaluation ................................................10-3
11. Cost Estimates ..................................................................................................11-1
  11.1.    Compensation for Land...........................................................................11-1
  11.2.    Compensation for Affected Houses and Structures ................................11-1
  11.3.    Compensation for Trees..........................................................................11-2
  11.4.    Cost Estimates for the Resettlement Site Development .........................11-3
  11.5.    Relocation and Rehabilitation Allowance ................................................11-3
  11.6.    External Monitoring and Post Evaluation ................................................11-4
  11.7.    Administrative /Operational Costs...........................................................11-4
  11.8.    Contingencies .........................................................................................11-4
  11.9.    Total RP Cost Estimates .........................................................................11-5




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                                                                   Mekong Tourism Development Project
                                                    Resettlement Plan: LAO: Luang Namtha Airport Improvement




                                            LIST OF TABLES
Table 2-1 – List of APs, affected land and houses......................................................2-4
Table 2-2 – Affected shops .........................................................................................2-7
Table 2-3 – Affected structures ...................................................................................2-7
Table 2-4 – Affected Trees..........................................................................................2-7
Table 4-1– Entitlement Matrix .....................................................................................4-5
Table 9-1 - Implementation Schedule .........................................................................9-1
Table 10-1 - Monitoring and Evaluation Indicators....................................................10-1
Table 11-1 – Cost Estimates: Houses and Structures ..............................................11-1
Table 11-2 - Value of Trees (in KIP)..........................................................................11-2
Table 11-3 – Cost Estimates: Trees..........................................................................11-2
Table 11-4 – Cost Estimates: Resettlement Site Development ................................11-3
Table 11-5 – Cost Estimates: Relocation and Rehabilitation Allowance...................11-3
Table 11-6 – Cost Estimates: External Monitoring and Post Evaluation Activities....11-4
Table 11-7 - Total Cost Estimates ...........................................................................11-5




                                                GLOSSARY

     ADB                                Asian Development Bank
     AP                                 Affected Person
     EA                                 Executing Agency
     DMS                                Detailed Measurement Survey
     IOL                                Inventory of Losses
     Km                                 Kilometer
     LAO PDR                            LAO People’s Democratic Republic
     NTAL                               National Tourism Authority of Lao PDR
     PCRC/DCRC / VCRC                   Provincial /District / Village Compensation and
                                         Resettlement Committee
     Project                            Mekong Tourism Development Project
     PPIO                               Provincial Project Implementation Office
     RP                                 Resettlement Plan
     SA                                 Social Assessment




October 2002                                                                                                         ii
                                                     Mekong Tourism Development Project
                                         Resettlement Plan: LAO: Luang Namtha Airport Improvement




                             DEFINITION OF TERMS
Resettlement Plan (RP) is a time-bound action plan with budget setting out
resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and
evaluation.
Affected Person (AP) indicates any juridical person being as it may an individual, a
household, a firm or a private or public who, on account of the execution of the
Project, or any of its components or sub-projects or parts thereof would have their:
       (i)     right, title or interest in any house, land (including residential, agricultural
               and grazing land) or any other fixed or moveable asset acquired or
               possessed, in full or in part, permanently or temporarily; or
       (ii)    business, occupation, work, place of residence or habitat adversely
               affected; or
       (iii)   standard of living adversely affected.
Severely Affected Person for this Project is defined as a person who will (a) lose more
than 10 percent of total agriculture/aquaculture land holding, and/or (b) relocate
and/or lose more than 50 percent of their main residential and/or commercial
structure, and/or (c) lose more than 10 percent of total income sources due to the
Project.
Land Acquisition means the process whereby a person is compelled by a public
agency to alienate all or part of the land s/he owns or possesses, to the ownership and
possession of that agency, for public purpose in return for fair compensation.
Replacement Cost means the cost of replacing lost assets and incomes, including cost
of transactions. If land, it means the cost of buying a replacement land near the lost
land with equal productive potential and same or better legal status, including
transaction costs. If structures, the replacement cost is the current market value of
building materials and required labor. Market prices will be used for crops, trees and
other commodities.
Resettlement Effects mean all negative situations directly caused by the
Project/subproject, including loss of land, property, income generation opportunity,
and cultural assets.
Relocation means the physical relocation of an AP from her/his pre-Project place of
residence.
Rehabilitation means the process to restore income earning capacity, production
levels and living standards in a longer term. Rehabilitation measures are provided in the
entitlement matrix as an integral part of the entitlements.
Compensation means payment in cash or in kind to replace losses of land, housing,
income and other assets caused by a project.
Significant Resettlement Effect for each subproject means 200 people or more will
experience major impacts. “Major” impacts being physical displacement from housing
and/or more than 10 percent of the household’s productive (income generating)
assets are lost.




October 2002                                                                                   iii
                                                        Mekong Tourism Development Project
                                            Resettlement Plan: LAO: Luang Namtha Airport Improvement




1. INTRODUCTION

Project Scope

The specific objective of the Mekong Tourism Development Project (or the
“Project”) is to promote sustainable tourism development through the
improvement of infrastructure projects, pro-poor and community-based
sustainable tourism, and sub-regional cooperation in order to preserve and
protect the Mekong River, its environs and its cultural and historical heritage.
The Project aims to mitigate environmental degradation from unplanned and
unsustainable development, and develop human resources within the sub-
region.

The proposed subproject in Lao PDR is the Luang Namtha Airport Improvement.
This subproject consists of improving and extending the runway, constructing a
drainage system, passenger terminal and small control tower, and providing
emergency and fire service equipment and air navigation services.

The existing airport runway is only 1,200m, which is 300m short of the 1,500m
runway standard. In addition, the runway is in poor condition, full of patches,
encroached with vegetation and lacks a drainage system.              Thus, it is
considered unsafe especially during the rainy season. At present, the airport is
unable to receive ATR72 (70 seats) and only receives Chinese built YN7 (50
seat) and YN12 (12 seats).

109 families in Vieng Neua Village will be affected by the airport improvement
and will be required to relocate to a new resettlement site. The resettlement
site which will be developed by the Government of Luang Namtha is just
across or within 1 km away from the existing village. Each Project Affected
Person (AP) will be provided with a residential land area of 18x20 sq.m. The
resettlement site will be developed and basic infrastructure such as electricity,
roads and water supply will be provided. Final design of the resettlement site
will be carried out during Project implementation.

During the RP preparation, consultations, census and preliminary inventory of
losses survey (IOL) were carried out by the District Compensation and
Resettlement Committee in May 2002. In July 2002, a team of surveyors
continued to do additional IOL activities and socio-economic survey work in
close coordination with the DCRC.

During RP implementation, a detailed measurement survey of all losses and a
replacement cost study will be carried out and this RP will be updated.



1
 Asian Development Bank, Involuntary Resettlement Policy, Manila, 1995; also, Asian Development
Bank, Handbook on Resettlement: A Guide to Good Practice, 1998.

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                                                Mekong Tourism Development Project
                                    Resettlement Plan: LAO: Luang Namtha Airport Improvement



The cost of RP is estimated at 8,517,947,611KIP (USD851,795). The actual cost
will be calculated only after the detailed design of the subproject, and
detailed measurement survey of each AP, and calculation of actual
replacement costs for all categories of losses. This cost estimate will be adjusted
during Project implementation to meet budget shortfalls, if any, and to achieve
the resettlement objectives of this Project.




October 2002                                                                            1-2
                                              Mekong Tourism Development Project
                                  Resettlement Plan: LAO: Luang Namtha Airport Improvement




2. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

Socio-Economic Profiles of APs

A total of 109 households in Vieng Neau Village will be required to relocate to
a proposed resettlement site which is just across or about 1km away from the
existing village. Socio-economic Information, using structured questionnaires
(see Annex 1) were collected from 107 of the 109 APs 9-14 July 2002.

The total household population is 655. Almost half (49 percent) of them have
households members between 4-6, followed by those with more than seven (7)
household members at 41 percent. Only a small percentage (9 percent) have
three (3) members and below. The average household size is 6.1. Males slightly
outnumber females at 51 percent. The total population belongs to the Lao
Loum (Lowland Lao) ethnic group.

There is a slight variation between household members who reached primary
and lower secondary school at 34 and 31 percent. 18 percent claimed that
they had no formal education. Only a small percentage (3 percent) reached
university level.

Less than half of the total population belongs to the economically active
population. 21 percent claimed that they are currently unemployed (ages
between 18-59). The 79 percent who are presently earning derive most of their
income from farming (48 percent), employed as government official (12
percent) and in the construction sector (14 percent). Household members
who are engaged in trading and livestock raising are at 14 and 12 percent
respectively. A small percentage are shopowners (six households) and the
remaining 20 percent are employed as drivers and electricians.

Households who have kitchen gardens are at 36 percent. Only a twenty-five
percent sell their produce within the village. Chili, eggplant and mint are
commonly grown in their gardens while some produce lettuce, string beans
and morning glory. Additional sources of income are derived from raising farm
animals. 85 percent of these households raise chickens and ducks. More than
a third (36 percent) raise pigs while more than a quarter have buffalos.

Households who claimed that they have an average income of more than $31
per month are at 54 percent. 31 percent said that they have an average
earnings ranging from $16 to $30 per month. Only 15 percent of the
respondents have less than $15 average income per month.

In terms of community involvement, only 5 percent of the total population are
members of a community organization (Lao women’s union and youth union).



October 2002                                                                          2-1
                                                Mekong Tourism Development Project
                                    Resettlement Plan: LAO: Luang Namtha Airport Improvement



When respondents were asked on what are the five most common problems in
the community, robbery ranks the highest, followed by livestock raising (lack of
proper knowledge and training that leads to death of animals). The third is
poor basic facilities (dirty water, no drainage system, bad roads and electricity)
followed by problems on rice production (problems with snails, flooded rice
fields during raining season). Drug problem ranks five in their list.

In terms of land use, most of them have occupied the area for more than 20
years. Of the 95 households who have provided information on the land they
are presently occupying, more than half (55 percent) of these families have
land areas between 500-1,000 m2. 63 households (59 percent) claimed that
they have no other land. Of the 44 households who have other land, one third
of them have already been the land informally within or near the proposed
resettlement site.

Houses with total floor areas of 50m2 and below are at 49 percent followed by
those houses with total floor areas between 51 to 100 m2 at 43 percent. Only
three (3) houses have an estimated floor area of 120 while one (1) house has a
total floor area of 250 m2. The houses are mostly on-stilts (91 percent) using
bamboo materials for walls (61 percent), a combination of bamboo and
timber (29 per cent) or timber only (10 percent). Zinc is commonly used for
roofing materials (61 percent) while more than a quarter (27 percent) use
thatch materials. A combination of tile, thatch and zinc are at 12 percent.

Electricity in Luang Namtha is only available from 6:00 pm to 10:00 pm. Among
the APs, almost all (96 percent) are connected to the local power grid. Only
10 households have telephone lines at home. As for their ownership of
vehicles, bicycles are commonly owned by the households. 18 households
own motorbikes and only four (4) households have 4x4 pickups. There are five
(5) who have tractors.

All households derive their water supply from deep wells. In terms of sanitation,
only a small proportion (12 percent) claimed that they do not have toilets.
Garbage disposal is done by burning and burying.


Perception towards Resettlement

Apart from the consultation meetings held by the District Compensation and
Resettlement Committee (DCRC) headed by the District Governor, households
were also asked about their awareness, attitude and perception towards the
project and resettlement. All respondents stated that they are aware of the
proposed project and they agree to be relocated at the proposed
resettlement site.

84 respondents expressed the opinion that more efforts should be made by the
government to consult them properly and regularly. Respondents also stated
that there should be a project committee in order to deal with their concerns
and suggestions directly. They added that the government should inform them

October 2002                                                                            2-2
                                                Mekong Tourism Development Project
                                    Resettlement Plan: LAO: Luang Namtha Airport Improvement



on the approved plans and schedule of the Project in order for them to plan
ahead before the actual relocation.

In terms of compensation for their losses, majority (76 percent) of the
respondents say that they should be compensated for all losses (land,
structures and trees) at market prices. Some 14 percent stated to have their
own land and that replacement land should be of equal size of what was lost
so they will be able to rebuild their houses and maintain their standard of living.
Only Three (3) households expressed the need for the provision of skills training
program and assistance on livestock raising.          Only 10 percent of the
respondents say that they will leave the decision to the government.

Moving and re-establishing to the new site will take an average of 1-3 months
based on the estimates made by the 59 respondents. 39 households estimated
that it will take them 4-6 months. 10 (ten) households responded that it will
depend on the how long it takes to compensate them and what type of
assistance the government will provide.

Majority (83 percent) expressed their concerns during the relocation period.
They say that they will not be able to work while they are rebuilding their
houses. 15 percent say that need transportation assistance in order to move.
Three (3) households say that they will not be able to move and rebuild their
houses since they are too old. Additional requests made are the provision of
structure materials and labor during relocation.

All households asked the government to develop the resettlement site as soon
as possible. Provision of electricity ranks the highest followed by school,
market, good roads, and water supply. They also requested for a temple at
the new resettlement site. Some households want a football field for their
children. Provision of telephone lines was also one of their requests.


Census and Inventory of Losses

The Census and preliminary Inventory of Losses (IOL survey) was carried out by
the District Compensation and Resettlement Committee (DCRC) in May 2002.
In July 2002, a team of surveyors worked closely with the DCRC representatives
such as the Village Chief of Vieng Neua and DCTPC and conducted a more
detailed survey of all losses. Names of APs, size of land, number of houses,
other structures and materials used were identified.




October 2002                                                                            2-3
                                                   Mekong Tourism Development Project
                                       Resettlement Plan: LAO: Luang Namtha Airport Improvement




A)     Loss Of Land and Affected Houses

Table 2-1 shows list of APs, affected land and houses.

Table 2-1 – List of APs, affected land and houses.
                                        Total
                           Affected    House                                        Materials
                                                  Style Of    Materials Used For
IOL#       Name Of APs       Land       Floor                                       Used For
                            (sq.m.)                House            Wall
                                        Area                                          Roof
                                       (Sq.M)
1       Mr. Bounleurn         735.00     41.25    2 Storey      Timber+brick           Tile
2       Mr. Tuithon         2,217.00    252.00    On-stilt          Timber             Zinc
3       Mr. Oula            1,000.00     54.00    2 Storey    Timber+bamboo            Zinc
4       Mr. Thongloun         878.80     72.25    2 Storey       Brick+timber          Zinc
5       Mr. Noiduangkeo       750.00     45.50    On-stilt    Timber+bamboo            Zinc
6       Mr. Duangkham         806.56     63.00    On-stilt          Timber             Zinc
7       Mr. Noichaihong     1,342.00     74.88    On-stilt    Timber+bamboo            Zinc
8       Mr. Khamphanh       1,112.61     77.00    On-stilt          Timber             Zinc
9       Mr. Somket          1,098.00     60.84    On-stilt          Timber             Zinc
10      Mr. Noithy            800.00     61.20    On-stilt    Timber+bamboo         Tile+zinc
11      Mr. Chanthy         1,377.00     81.00    On-stilt    Timber+bamboo            Zinc
12      Mr. Maykhanh          774.00     50.40    On-stilt    Timber+bamboo            Zinc
13      Mr. Nankheung       1,475.70     69.60    On-stilt    Timber+bamboo            Zinc
14      Mr. Noithon         1,480.00     49.00    On-stilt    Timber+bamboo            Zinc
15      Mr. Peng              510.00     40.00    On-stilt    Timber+bamboo        Zinc /thatch

16      Mr. Milanoi           415.80     54.00    On-stilt          Timber             Zinc
17      Mr. Noiinkham         486.40     56.00    On-stilt    Timber+bamboo            Zinc
18      Mr. Khamkeo         1,738.80    123.25    On-stilt          Timber             Zinc
19      Mr. Kongkham          700.00     72.00    On-stilt    Timber+bamboo            Zinc
20      Mr. Chankeo           582.00     64.00    On-stilt    Timber+bamboo            Zinc
21      Mr.Mayneung         1,361.20     63.00    On-stilt    Timber+bamboo            Zinc
22      Mr. Singthong       1,250.00     98.00    On-stilt    Timber+bamboo            Zinc
23      Mr. Khamphengud     1,030.33     50.00    On-stilt    Timber+bamboo            Zinc
24      Mr. Noiphommy       3,500.00     37.50    On-stilt    Timber+bamboo            Zinc
25      Mr. NoiNouanim        600.00     37.50    On-stilt    Timber+bamboo            Zinc
26      Mr. Noichai           912.27     60.50    On-stilt          Timber             Zinc
27      Mr. Noipanh         1,024.00     40.00    On-stilt    Timber+bamboo            Zinc
28      Mr. Bounchure       3,756.00     50.00    On-stilt          Timber             Zinc
29      Mr. Onseng            586.60     50.00    On-stilt    Timber+bamboo            Zinc
30      Mr. Noisyking       1,270.00     54.00    On-stilt    Timber+bamboo            Zinc
31      Mr. Noithon         1,196.00     50.00    On-stilt     Timberbamboo            Zinc
32      Mr. Chaison         1,398.00    120.00    On-stilt         Bamboo              Zinc
33      Mr. Souvanh         1,303.20     72.00    On-stilt    Timber+bamboo            Zinc
34      Mr. Thongpan          576.64     36.00    On-stilt         Bamboo              Zinc
35      Mr. Noikham         1,064.00     64.00    On-stilt    Timber+bamboo        Zinc /thatch



October 2002                                                                                  2-4
                                                 Mekong Tourism Development Project
                                     Resettlement Plan: LAO: Luang Namtha Airport Improvement



                                      Total
                          Affected   House                                        Materials
                                                Style Of    Materials Used For
IOL#      Name Of APs       Land      Floor                                       Used For
                           (sq.m.)               House            Wall
                                      Area                                          Roof
                                     (Sq.M)
36     Mr. Vannavong        313.00     70.00    On-stilt         Bamboo              Zinc
37     Mr. Intha          1,200.00     54.00    On-stilt    Timber+bamboo            Zinc
38     Mr. Amphon           511.20     67.50    On-stilt         Bamboo              Zinc
39     Mr. Lakhoun          800.00     35.00    On-stilt         Bamboo              Zinc
40     Mr. Sivixay          811.87     44.00    On-stilt         Bamboo              Zinc
41     Mr. Bounchan         862.90     56.00    On-stilt         Bamboo              Zinc
42     Mrs. Chanseng        596.00     32.00    On-stilt         Bamboo              Zinc
43     Mr. Tuiduangkham     547.50     40.00    On-stilt         Bamboo              Zinc
44     Mr. Inpanh           767.00     56.00    On-stilt         Bamboo              Zinc
45     Mr. Noiphet          576.00     40.00    On-stilt         Bamboo              Zinc
46     Mrs. Kiengson        900.00     56.00    On-stilt         Bamboo              Zinc
47     Mr. Keo Ondavong     838.00     35.00    On-stilt         Bamboo              Zinc
48     Mr. Thongsingpin     510.00     31.50    On-stilt         Bamboo              Zinc
49     Mr. Phomma           650.00    120.00    On-stilt    Timber+bamboo            Zinc
50     Mr. Bounnam        1,600.00     60.00    On-stilt         Bamboo              Zinc
51     Mr. Inkeo            537.80     64.00    1 Storey          Timber             Zinc
52     Mr. Chai             702.00     66.00    On-stilt         Bamboo              Zinc
53     Mr. Noichanthon      776.00     70.00    On-stilt         Bamboo              Zinc
54     Mr. Nansiphon        585.60     40.50    On-stilt         Bamboo          Zinc /thatch
55     Mr. Duangkeo       1,269.00     70.00    On-stilt         Bamboo              Zinc
56     Mr. Inkham           953.00     48.00    On-stilt    Timber+bamboo        Zinc /thatch
57     Mr. Tuisaychampa     600.00     40.00    On-stilt         Bamboo              Zinc
58     Mr. Somphonpin     1,102.90     60.00    On-stilt         Bamboo              Zinc
59     Mr. Khampengmy       700.00     48.00    On-stilt         Bamboo              Zinc
60     Mrs. Inkhamvanh      635.00     64.00    On-stilt         Bamboo              Zinc
61     Mr. Chitha           850.00     72.00    On-stilt         Bamboo              Zinc
62     Mr. Bounpheng      2,464.00     54.00    On-stilt    Timber+bamboo            Zinc
63     Mrs. Sengkeo       4,000.00     65.00    On-stilt    Timber+bamboo            Zinc
64     Mr. Feungthong       283.00     45.00    On-stilt         Bamboo              Zinc
65     Mr. Somsack          692.20     50.00    On-stilt         Bamboo              Zinc
66     Mr. Leng                        30.00    On-stilt         Bamboo              Zinc
67     Mr. Noichurn       1,500.00     48.00    On-stilt         Bamboo              Zinc
68     Mr. Noiphompanh      290.00     40.00    On-stilt         Bamboo              Zinc
69     Mr. Chandeng         511.50     72.00    On-stilt         Bamboo              Zinc
70     Mr. Phouvong         600.00     30.00    On-stilt         Bamboo          Zinc /thatch
71     Mr. Khamyong                    45.00    1 Storey         Bamboo              Zinc
72     Mr. Sipaseurt                   36.00    1 Storey         Bamboo              Zinc
73     Mr. Chanthasouk      109.25     39.55    1 Storey         Bamboo              Zinc
74     Mr. Sengkaly         800.00     67.50    1 Storey         Bamboo          Zinc /thatch

75     Mr. Bounthanom       580.00     24.00    1 Storey         Bamboo              Zinc



October 2002                                                                                2-5
                                                Mekong Tourism Development Project
                                    Resettlement Plan: LAO: Luang Namtha Airport Improvement



                                     Total
                         Affected   House                                        Materials
                                               Style Of    Materials Used For
IOL#      Name Of APs      Land      Floor                                       Used For
                          (sq.m.)               House            Wall
                                     Area                                          Roof
                                    (Sq.M)
76     Mr. Chanh                      28.00    On-stilt         Bamboo            Thatch
77     Mr. La            1,156.00     48.00    On-stilt         Bamboo            Thatch
78     Mr. Kham          1,086.40     73.35    On-stilt          Timber         Zinc /thatch
79     Mr. Noisongseng     446.00     90.00    On-stilt         Bamboo            Thatch
80     Mr. Mayhong       1,000.00     69.00    On-stilt         Bamboo            Thatch
81     Mr. Khamkeo         914.56     48.00    On-stilt         Bamboo            Thatch
82     Mr. Poulao          500.00     70.00    On-stilt         Bamboo            Thatch
83     Mr. Sinouan       1,268.00    104.50    On-stilt         Bamboo          Zinc /thatch
84     Mr. Panh            551.80     72.00    On-stilt         Bamboo           Tile/ thatch
85     Mr. Sithon          799.00     55.00    On-stilt         Bamboo            Thatch
86     Mr. Thongkhoun      622.20     32.00    On-stilt         Bamboo            Thatch
87     Mr. Takham        1,330.00     42.00    On-stilt         Bamboo            Thatch
88     Mr. Nanchanh        600.00    100.00    On-stilt         Bamboo            Thatch
89     Mr. Xay                        27.00    On-stilt         Bamboo            Thatch
90     Mr. Thongphet                  24.00    On-stilt         Bamboo            Thatch
91     Mr. Ma                         24.00    On-stilt         Bamboo            Thatch
92     Mr. Bounphet      2,000.00     33.00    On-stilt         Bamboo            Thatch
93     Mr. Loun                       24.00    On-stilt         Bamboo            Thatch
94     Mr. Keotan                     30.00    On-stilt         Bamboo            Thatch
95     Mr. Keota           360.00     63.00    On-stilt         Bamboo            Thatch
96     Mr. Kurn          1,000.00     24.00    On-stilt         Bamboo            Thatch
97     Mr. Uttha           651.00     50.00    On-stilt         Bamboo            Thatch
98     Mr. Kongnin                    32.00    On-stilt         Bamboo            Thatch
99     Mr. Keo                        24.00    On-stilt         Bamboo            Thatch
100    Mrs. On             636.80     24.00    On-stilt         Bamboo            Thatch
101    Mr. Hurn            800.00     42.00    On-stilt         Bamboo            Thatch
102    Mr. Yanh                       24.00    On-stilt         Bamboo            Thatch
103    Mr. Kampheng        370.50     24.00    On-stilt      Zinc+bamboo          Thatch
104    Mr. Khamsy                     66.00    On-stilt    Timber+bamboo        Zinc /thatch
105    Mr. Noiyong         868.00     63.00    On-stilt         Bamboo            Thatch
106    Mr. Yord          1,000.00     60.00    On-stilt         Bamboo            Thatch
107    Mr. Noiphanh        600.30     28.00    On-stilt         Bamboo            Thatch
108    Mr. Bounmy                     49.00    On-stilt         Bamboo            Thatch
109    Mr. Vanhdy          480.00     30.00    On-stilt         Bamboo            Thatch
       Total              92,173




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                                                                   Mekong Tourism Development Project
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B)           Small Shops

In addition to the affected houses, there are six (6) small shops identified during
the Inventory of Losses (Table 2-2).

Table 2-2 – Affected shops
 IOL #                 Name of ShopOwner          Floor Area (sq.m.)      Materials Used      Materials used
                                                                            For Walls           For Roofs
         2       Mr. Tuithon                                     43.20         bamboo            Zinc / tile
     19          Mr. Kongkham                                    12.00         bamboo            Zinc / tile
     36          Mr. Peng Vannavong                              14.00         bamboo            Zinc / tile
     68          Mr. Noiphompanh                                 11.50         bamboo            Zinc / tile
     73          Mr. Amphon Chanthasouk                           8.10         bamboo            Zinc / tile
     104         Mr. Khamsy                                      10.50         bamboo            Zinc / tile
                                  6                             117.00



C)           Other Structures

Other affected structures identified are given in Table 2-3.

Table 2-3 – Affected structures
                                                      Qty.    Average         Common              Common
                       Type of Structures                    Floor Area      materials used       materials
                                                               (sq.m.)         for walls        used for walls
A            Toilets                                  66         4.00          Bamboo              thatch
b            Kitchen                                  91         14.5           Bamboo           Thatch/zinc
c            Rice Storage Bin                         76         11.5           Bamboo                Thatch
d            Pigpens                                  12         6.39           Bamboo                Thatch
e            Chicken pens                              7         5.00           Bamboo           Thatch/Zinc
f.           Buffalo pens                              8         8.00           Bamboo                Thatch
g            Other Structures (deepwells)              7        16.00           Bamboo                Thatch
.



D)           Loss of Trees

A total of 1,838 trees were inventoried. The breakdown is shown in Table 2-4.

Table 2-4 – Affected Trees
                                      Type of Trees                                        Quantity

     1        coconut                                                                                    356
     2        Teakwood                                                                                    28
     3        Bamboo                                                                                     407
     5        Mango                                                                                      496
     6        Jackfruit                                                                                   40
     7        Tamarind                                                                                   141


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                            Type of Trees                                     Quantity

 8         Longan                                                                           122
 9         Grapefruit                                                                        71
 10        Lemon                                                                             41
 11        custard apple                                                                      9
 12        Other fruits                                                                     127
                                                                                          1,838



E)     Relocation of Temple

The temple will not be affected by the Project. However, this will be relocated
to the new resettlement site based on the requests of the APs.


Proposed Land Allocation and Resettlement Site Development


The Government of Luang Namtha Province is proposing to allocate an
average of 18x20 sq.m. (360 m2) of residential land to each AP. The proposed
resettlement site is just across the village. The area is acceptable to APs since
they have been utilizing the land for agricultural purposes. The resettlement
site development plan proposed by the provincial government, which
incorporates the requests of the APs, consists of the following:

      a)        Road construction and rehabilitation
      b)        Bridges
      c)        Electricity (source will come from China)
      d)        Water Supply
      e)        Temple

To date, preliminary designs and cost estimates have already been carried out
by the DCTPC of Luang Namtha province. Final designs and budget will be
submitted to the Office of the Governor for final approval.




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3. PROJECT PRINCIPLES AND OBJECTIVES

The Resettlement Policy Framework for the Project has been built upon the laws
of the Government of Lao PDR, the ADB’s Policy on Involuntary Resettlement
(1995), ADB Handbook on Resettlement: Guide to Good Practice (1998), and
the Draft National Resettlement Policy2.

This Project will be bound by the principles and conditions stated in this
Resettlement Plan that will be approved by the ADB and NTAL. If there are any
gaps between ADB and Government policy, ADB policy supersedes. The
principles and objectives are to ensure that all APs will be compensated for
their losses at replacement cost and provided with rehabilitation measures in
order to assist them to improve, or at least maintain, their pre-project living
standards and income earning capacity.


Legal Framework

The legal context in Lao PDR has been changing rapidly over the last few
years. A constitution was introduced in 1991, forestry and water resources laws
in 1996 and land law in 1997. While they are subject to interpretation, the
various legislative initiatives provide a legal foundation for the consideration of
resettlement and compensation.


    a) On Land, No. 001 (April 2, 1997)

    Article 5: The State protects the legal rights and benefits of those who have
    effectively received the right to use land including the rights to transfer it.

    Article 18: The district …. may grant the right to use agricultural land within
    its administration….

    Article 63: The right of an individual to use land shall terminate when the
    State takes back the land for public interest.

    Article 70: When it is necessary to use an individual’s land in the public
    interest, the State must make appropriate compensation for damages.

    Article 71: In determining damages, there must be a Committee comprised
    of representatives of interested parties to determine the value of the
    damages.

2
  A Draft National Resettlement Policy was prepared by the Lao PDR Government in 1995 and presented
by the Science, Technology and Environment Agency to the ADB RETA 5935 Regional Workshop on
National Resettlement Policy Enhancement and Capacity Building at ADB Headquarters in 2002. The
draft policy is the basis for a Ministerial decree on Resettlement that is being prepared under the
Environment and Social Program Loan 1867-LAO, approved on 6 December 2001.

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                                                 Mekong Tourism Development Project
                                     Resettlement Plan: LAO: Luang Namtha Airport Improvement



   b) Draft National Resettlement Policy
   If approved, the Draft National Resettlement Policy would provide full
   compensation and rehabilitation at essentially the same levels required
   under the ADB’s Policy on Involuntary Resettlement.


Project Principles and Objectives

For this Project, the basic principles and objectives are:
   a) Acquisition of land and other assets, and resettlement of people will be
      minimized as much as possible.

   b) The census or inventory of losses to be carried out as part of the
      resettlement planning process for the infrastructure sub-projects will
      represent the cut-off date for eligibility. Eligible persons are entitled to
      be provided with compensation and rehabilitation measures sufficient
      to assist them to improve or at least maintain their pre-project living
      standards, income earning capacity and production levels.

   c) Lack of formal legal rights to the assets lost will not bar APs from
      entitlement/compensation and to rehabilitation measures.                 No
      distinctions will be made between APs with and without full legal title.

   d) Plans for acquisition of land and other assets and provision of
      replacement land and rehabilitation measures will be carried out in
      consultation with the APs to ensure minimal disturbance.

   e) Compensation rates for physical assets (land, house/building/other
      structures) and non-physical assets (lost income from productive assets
      or jobs) will be calculated at replacement cost or at current market
      value at the time of compensation.

   f) Compensation for houses and other structures will cover full
      replacement costs of materials and labor sufficient for APs to build their
      houses and structures of the same size and standard.


   g) Affected populations that stand to lose only part of their physical assets
      will not be left with a proportion that will be inadequate to sustain their
      current standard of living; such a minimum size being identified and
      agreed during the resettlement planning process.

   h) Affected populations will be systematically informed and consulted
      about the Project, the rights and options available to them and
      proposed mitigating measures, and to the extent possible be involved in
      the decisions that are made concerning their resettlement.




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   i)   The consultative process will include not only those affected, but also
        representatives of the local governments of the areas in which the
        Project is located, host communities' community leaders, civil society
        organizations such as NGOs, and members of local people’s
        organizations.

   j)   Existing cultural and religious practices will be respected and, to
        maximum extent practical, preserved.

   k) Special measures will be incorporated in the resettlement plan to
      protect socially and economically vulnerable groups such as the ethnic
      minorities, women-headed households, children, and elderly people
      without support structures and people living in extreme poverty.

   l)   The previous level of community services and resources will be improved
        after resettlement.

   m) There will be effective mechanisms for hearing and resolving grievances
      during the implementation of the Resettlement Plan.

   n) The compensation, resettlement and rehabilitation activities will be
      satisfactorily completed before a No-Objection from the ADB will be
      provided for award of contract of civil-works under each sub-
      component project.

   o) The Executing Agency (EA) will see that institutional arrangements are in
      place to ensure effective and timely design, planning, consultation and
      implementation of the land acquisition, compensation, resettlement,
      and rehabilitation program.

   p) Where a host community is affected by the resettlement of others into
      that community, the host community will be involved in any resettlement
      planning and decision-making. All attempts will be made to minimize
      the adverse impacts of resettlement upon host communities.

   q) Adequate budgetary support will be fully committed and made
      available to cover the costs of land acquisition and resettlement within
      the agreed implementation period. Owing to practices established
      under current Government procedures, clear budget commitments are
      required for critical activities such as formal detailed physical surveys
      and administrative functions associated with compensation and
      resettlement.

   r) Appropriate reporting (including auditing and redress functions),
      monitoring and evaluation mechanisms, will be identified and set in
      place as part of the resettlement management system. An external
      monitoring group will be hired by the Project and the said group will
      evaluate the resettlement process and final outcome. Such groups may
      include qualified NGOs, research institutions or universities. Monitoring
      reports will be forwarded directly to the ADB.

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                                             Mekong Tourism Development Project
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   s) Construction activities will not commence until the required lands have
      been fully acquired and the affected people are appropriately
      compensated and relocated in accordance with the principles set out
      above.




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                                                           Mekong Tourism Development Project
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4. ELIGIBILITY AND ENTITLEMENT

A cut-off date of eligibility for entitlement is May 2002 when the Census was
carried out and completed by the DCRC.

Persons who encroach the area after the above cut-off date will not be
entitled to compensation or any other form of resettlement assistance.

APs who have been included in the May 2002 census but have moved to the
new resettlement site prior to Project implementation will still be entitled to the
same amount of compensation and assistance as described in this section.

Project Affected People (AP)

The project affected people (APs) include the following persons to be
identified during census where there is land, property, asset acquisition or
resettlement involved:

    a) Persons whose agricultural, residential, or commercial land is in part or in
       total affected (temporarily or permanently) by the Project;
    b) Persons whose houses and other structures are part or in total affected
       (temporarily or permanently) by the Project;
    c) Persons whose businesses or source of income are part or in total
       affected (temporarily or permanently) by the Project;
    d) Persons whose crops (annual and perennial) and trees are affected by
       the Project; and
    e) Persons whose other assets are part or in total affected (temporarily or
       permanently) by the Project.


Projects Impacts and Entitlements

Entitlements for each type of APs are based on the types and levels of losses.
Entitlement Matrix for the Project is shown in Table 4-1


A) Temporary Loss of Agricultural, Residential or Commercial Land (i.e. loss of
   use of land for a period less than one year e.g. during construction).

    a) No compensation for land if returned to original user. However, the
       Project will pay rent to APs during the temporary use of APs’ land;




3
  Impacts are considered insignificant if less than 200 people experience major impacts. “Major” impacts
being physical displacement from housing and/or more than 10 percent of the household’s productive
(income generating) assets are lost.


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                                                 Mekong Tourism Development Project
                                     Resettlement Plan: LAO: Luang Namtha Airport Improvement



   b) Restoration of land to its previous or better quality by providing measures
      to improve land quality in cases of land being adversely affected or
      acidified;

   c) Cash compensation for loss of crops and trees at market prices and
      compensation for loss of net income from subsequent crops that cannot
      be planted for the duration of the lease; and

   d) If the disruption is more than one (1) year, APs have an option to (a)
      continue the temporary use arrangements or (b) sell affected land to
      the Project at full replacement cost.

B) Permanent Loss of Agricultural, Residential and Commercial Land

      a) Agricultural land

          (i) Compensation will be through the provision of a “land-for-land“
              arrangements with full legal title to land and of equal productive
              capacity of the lost land satisfactory to APs. If APs opt for cash
              compensation, the amount will be equivalent to current market
              value. The APs will be free from taxes, registration and land
              transfer.

          (ii) If the impact on the land is minor or less than 10% of the total
               landholdings of APs, the AP may opt for cash compensation
               equivalent to the replacement cost at current market value of
               land.

      b) Residential Land

          (i) Compensation will be through the provision of a “land-for-land”
              arrangements with full legal title to land and of equivalent size
              satisfactory to APs. If APs opt for cash compensation, the amount
              will be equivalent to current market value. The APs will be free
              from taxes, registration and land transfer.

          (ii) If the impact on the residential land is minor or less than the 10%
               of the total landholdings of APs, the AP may opt for cash
               compensation equivalent to the replacement cost at current
               market value of the affected land.

          (iii) If the residential land and/or structure is partially affected by the
                Project and the remaining residential land is not sufficient to
                rebuild the residential structure lost, then at the request of the
                APs, the entire residential land and structure will be acquired at
                replacement cost without depreciation.             The threshold of
                insufficient remaining residential land is to be determined based
                on the consultation with APs.



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                                                Mekong Tourism Development Project
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          (iv) All APs that are entitled to relocate to a fully serviced
               resettlement site will be provided full legal title to an equivalent
               plot of land.

      c) Commercial Land

          (i) Compensation will be through the provision of alternative
              business or commercial site with full legal title to land and of
              equal size and accessibility to customers satisfactory to APs.    If
              APs opt for cash compensation, the amount will be equivalent to
              current market value. The APs will be free from taxes, registration
              and land transfer.

          (ii) If the impact on the commercial land is minor or less than 10% of
               the total landholdings of APs, the AP may opt for cash
               compensation equivalent to the replacement cost at current
               market value of the affected land.

          (iii) If the commercial land and/or structure is partially affected by
                the Project and the remaining commercial land is not sufficient to
                rebuild the commercial structure lost, then at the request of the
                APs, the entire commercial land and structure will be acquired at
                full replacement cost. The threshold of insufficient remaining
                commercial land is to be determined based on the consultation
                with APs.

C) Houses, Private/Commercial Structures

      a) Compensation for affected houses, private/commercial structures at
         full replacement cost sufficient for APs to build a house/commercial
         structure of the same size and standard and without deduction for
         depreciation or salvageable materials.

      b) Tenants renting structures are entitled to three (3) months’ rent at
         prevailing market rate in the area and assistance to identify
         alternative accommodation, transport allowance and transition
         allowance.

D) Crops and Trees

      a) Annual Crops – APs will be given two (2) months notice that the land
         on which their crops are planted will be used by the Project and that
         they must harvest their crops in time. If standing crops are ripening
         and cannot be harvested, eligible APs will be compensated for the
         loss of the unharvested crops at current market value.

      b) Perennial Crops and Trees – APs will be compensated for the loss of
         fruit and timber trees. The value will be calculated as the annual
         produce value multiplied by a five (5) years factor. This will


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                                               Mekong Tourism Development Project
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          compensate for lost income until the newly planted seedlings bear
          fruit. APs will be assisted in planting new trees.

          APs will be awarded the full value of any lost crops where the plants
          are near or ready to harvest.

E) Loss of Common Property Resources

      a) Affected land will be replaced in areas identified in consultation with
         affected communities and relevant organizations.

      b) Restoration of affected community buildings and structures to
         original or better condition.

      c) If income loss is expected (e.g. irrigation, community forest, income
         from fishpond), the affected village will be entitled to compensation
         for the total production loss (over 3 years). This compensation should
         be used collectively for income restoration measures and/or new
         infrastructure.

F)    Materials Transport and Transition Subsistence Allowance

      a) Materials Transport Allowance. Relocating APs will receive assistance
         in cash or in kind to transport household effects, new and
         salvageable materials to new sites.

      b) Housing Transition Subsistence Allowance. Relocating APs will
         receive a lumpsum of 1,200,000 kip during transition. This is based on
         the existing paid labor for rice planting at 20,000 kip per day
         multiplied by 60 days wages during the transition period for AP (the
         number of days may vary as it is estimated that it takes 2-3 months to
         rebuild the house at new sites).

      c) Business Transition Allowance. For relocating businesses without tax
         declarations such as shops or small restaurants, a lumpsum of
         1,200,000 kip (equivalent to 60 days wages) or equivalent to three (3)
         months provincial minimum wage, whichever is greater.                For
         businesses with tax declarations, the amount will be calculated
         based on the business income tax statements that they could
         provide multiplied by three (3) months (the number of months may
         vary, 3-6 months, depending on the type of structure and estimated
         time to rebuild a new one and re-establish business at the new site).
         All businesses will be notified 3-4 months in advance to relocate and
         rebuild new business structures at new sites. This will allow businesses
         to avoid disruption of operation and continue operating while they
         are rebuilding new structures at the new sites.

          For employees, cash compensation for lost salary/wages for each
          day they cannot work while business is reorganizing at new site.


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                                                           Mekong Tourism Development Project
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         a) Special Assistance for socially and economically vulnerable
            households. APs belonging to vulnerable groups including the very
            poor headed by the aged without support, women, disabled, or
            ethnic minorities are entitled to an additional special allowances
            amounting to 200,000kip based on identified needs and priorities.
            Households with more than one factor of vulnerability being entitled
            to a 200,000kip special allowance for each factor. For example,
            households who are very poor and with elderly household head
            would be entitled to 400,000kip. In addition APs will receive any
            necessary support to obtain replacement land and resettlement.
            Relocating vulnerable households will also be assisted in rebuilding
            their homes if traditional sources of community or family support are
            insufficient.
Table 4-1– Entitlement Matrix
    Type of Loss       Entitled Persons    Compensation and rehabilitation          Implementation Issues
                                                    measures
I. LOSS OF LAND

A. Temporarily       Legal owners or      Cash compensation for loss of            If temporary disturbance
    Affected         occupants            income, standing crops and trees.        is more than one (1) year,
    Agricultural,    identified during    Restoration of land to its previous      the APs have the option
    Residential or   the census           or better quality by providing           to sell the land to the
    Commercial                            measures to improve land quality         Project at replacement
    Land                                  in cases of land being adversely         cost at current market
                                          affected or acidified.                   value.


B. Permanently       Legal owners or      As a priority, compensation will be      If the impact on land is
    Affected         occupants            through “land for land                   minor or less than 10% of
    Agricultural,    identified during    arrangements” with full legal title      the total landholdings,
    Residential or   the census           satisfactory to APs. (for agricultural   APs may opt for cash
    Commercial                            land – equal size and productive         compensation for the
    Land                                  capacity ; for residential land –        affected land equivalent
                                          equivalent size ; and for                to replacement cost at
                                          commercial land – equal size and         current market value.
                                          accessibility to customers).

                                          If APs opt for cash
                                          compensation, the amount will
                                          be equivalent to current
                                          market value. The APs will be
                                          free from taxes, registration
                                          and land transfer.



II. LOSS OF HOUSES & OTHER STRUCTURES

Affected Houses,     Owners identified    a) Compensation at full                  All relocating APs with
Private/Commercial   during the census       replacement cost sufficient for       permanent or temporary
Structures                                   APs to build a house of the           houses/structures are
                     Tenants renting         same size and standard and            entitled to materials
                     houses/structures       without deduction for                 transport allowance.
                                             depreciation or salvageable
                                             materials.
                                          b) Tenants renting structures are
                                             entitled to three (3) months’
                                             rent at prevailing market rate
                                             in the area and assistance to
                                             identify alternative


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                                                           Mekong Tourism Development Project
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   Type of Loss        Entitled Persons    Compensation and rehabilitation         Implementation Issues
                                                       measures
                                             accommodation and
                                             transport allowance and
                                             transition allowance.

III. LOSS OF CROPS AND TREES
                      Owner or person     Annual Crops – APs will be              If standing crops are
                      with customary      given two (2) months notice             ripening and cannot
                      usage rights        that the land on which their            be harvested, eligible
                                          crops are planted will be used          APs will be
                                          by the Project and that they            compensated for the
                                          must harvest their crops in             loss of the
                                          time.                                   unharvested crops at
                                                                                  current market value.
                                          Cash compensation for loss of
                                          crops at annual produce
                                          current market value.

                                  Perennial Crops and Trees –                     APs will be assisted in
                                  APs will be compensated for                     planting new trees.
                                  the loss of fruit and timber
                                  trees. The value will be
                                  calculated as the annual
                                  produce value multiplied by a
                                  five years factor. This will
                                  compensate for lost income
                                  until the newly planted
                                  seedlings bear fruit.
IV. LOSS OF COMMON PROPERTY RESOURCES

Common               Affected             a) Restoration of affected              The compensation will
Property             communities or          community properties to              be used collectively
Resources            concerned               at least previous condition;         for income restoration
                     government              OR                                   measures and/or new
                     agencies             b) Replacement in areas                 infrastructure
                                             identified in consultation
                                             with affected communities
                                             and relevant authorities;
                                          c) If income loss is expected
                                             (e.g. irrigation, community
                                             forest, community grazing
                                             land), the village is entitled
                                             to compensation for the
                                             total production loss (over
                                             3 years).

V. INCOME RESTORATION
A. Materials     FOR relocating           Assistance will be in cash or in kind
     Transport   APs that are             to transport household effects,         In cases that vehicles
     Allowance   required to move         new and salvageable materials to        and laborers are not
                                          new sites                               sufficient for reloating
                 back or relocate
                                                                                  APs, cash compensation
                 to other areas           The Government of Luang                 will be provided.
                                          Namtha will provide vehicles and        Resettlement
                                          laborers to APs during relocation.      committees, in
                                                                                  consultation witn APs, will
                                                                                  calculate the amount.
B. Housing           For relocating       Lump sum of 1,200,000 kip
    Transition       APs that are         (equivalent to 60 days wages)
    Allowance        required to move


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                                                           Mekong Tourism Development Project
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   Type of Loss        Entitled Persons    Compensation and rehabilitation         Implementation Issues
                                                    measures
                     back or relocate
                     to other areas
C. Business          For owners of        a) For relocating businesses            All businesses will be
    Transition       business                without tax declarations             notified 3-4 months in
    Allowance        identified during       such as shops or small               advance to relocate
                     census                  restaurants, a lumpsum of            and rebuild new
                                             1,200,000 kip (60 days               business structures at
                                             wages) or equivalent to              new sites. This will allow
                                             three (3) months provincial          businesses to avoid
                                             minimum wage, whichever              disruption of operation
                                             is greater.                          and continue
                                                                                  operating their
                                          b) For businesses with tax              business while they are
                                             declarations, the amount             rebuilding new
                                             will be calculated based             structures at the new
                                             on the business income tax           sites.
                                             statements that they could
                                             provide multiplied by three
                                             (3) months (the number of
                                             months may vary, 3-6
                                             months, depending on the
                                             type of structure and
                                             estimated time to rebuild a
                                             new one and re-establish
                                             business).

                                          c) For employees, cash
                                              compensation for lost
                                              salary/wages for each day
                                              they cannot work while
                                              business is reorganizing at
                                              new site.For employees,
                                              Cash compensation for lost
                                              salary/wages for each day
                                              they cannot work while
                                              business is reorganizing at
                                              new site

D. Special           APs belonging to     A 200,000kip special                    For example,
    assistance for   vulnerable           allowance plus additional               households that are
    socially or      groups including     cash and other assistance               very poor and with
    economically     the very poor        based on identified needs and           elderly household
    vulnerable       headed by the        priorities, households with more        head will be entitled
    households       aged, women,         than one factor of vulnerability        to 400,000kip.
                     disabled, or         being entitled to a 200,000kip
                     ethnic minorities    allowance for each factor.

                                          In addition APs will receive any
                                          necessary support to obtain
                                          replacement land and
                                          resettlement. Relocating
                                          vulnerable households will also be
                                          assisted in rebuilding their homes if
                                          traditional sources of community
                                          or family support are insufficient.




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5. CONSULTATION AND PEOPLE’S PARTICIPATION

During RP Preparation

A public meeting held by the DCRC last 9 May 2002 was participated in by the
village committee, village front, village police, village women’s union, and
residents of Vieng Neua Village. In addition, consultations with the Vice
Governor of Luang Namtha province, DCTPC officials, village chief and APs
were also conducted from 4-13 July 2002 were conducted by the survey team.

The consultation meetings have involved the following discussions:

      •   Proposed airport improvement
      •   Relocation issues
      •   Entitlement and compensation
      •   Objectives of the census and Inventory of Losses and socio-
          economic surveys
      •   Objectives of the Compensation and Resettlement Committee
      •   Need for active participation of the community
      •   Proposed resettlement site development

Consultation and social survey shows that APs agree to be relocated to the
proposed resettlement site. However, the APs requested that the following
requests will be made available to them:

      •   To properly allocate the land to APs immediately;
      •   To be compensated for their houses and structures, trees and crops
          in cash or in kind at market rates;
      •   Quick and concrete decision and action on the proposed land
          allocation relocation program and schedule;
      •   Develop the resettlement site by constructing bridges, road,
          provision of electricity and water supply;
      •   Relocate the temple to the new site;
      •   Assistance during relocation
      •   Continue the consultation process to enable them to plan ahead
          and be ready during the actual relocation.


During RP Implementation

The APs will participate throughout the various stages of the planning and
implementation of the RPs. The draft RP will be presented to the affected
communities before project resettlement implementation. To ensure that
information about the Project, entitlements, compensation and rehabilitation
options and grievance mechanisms written in the draft RP are in place, a
Public Information Booklet (see Annex 1) has been prepared and will be

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                                                Mekong Tourism Development Project
                                    Resettlement Plan: LAO: Luang Namtha Airport Improvement



translated into Lao language. The said will be distributed to APs prior to project
resettlement implementation. The booklet has been written in way that is easily
understood by the affected communities and it includes the following:

      •   Objectives of the Project
      •   Project policies on entitlement and compensation
      •   Project schedule and activities
      •   Implementation Arrangements
      •   Grievance redressals
      •   Details and explanation on the calculation of and basis for
          compensation
      •   Project management
      •   Monitoring
      •   Importance of community participation


Lessons learned from other development projects show that APs are often
asked for donations and/or “service fees” by Project staff, local
officials/organizations. Thus, APs are obliged to share or contribute a portion of
their compensation payment as part of the administrative requirements for
compensation payment. To avoid this, it should be clearly written in the Public
Information Booklet that APs are not allowed to give or donate a portion of
their money to any officials/members of any Project staff, local authorities and
organizations.

The Public Information Booklet, posting of Project activities and schedule in
village and project offices will be carried out and updated regularly. These
activities will continue throughout the implementation of the Project.
In addition to the Public Information Booklet, use of radio announcements and
preparation of local newsletters will be used as part of the pubic information
campaign.




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                                                Mekong Tourism Development Project
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6. GRIEVANCE REDRESSALS
All APs have the right of appeal against any aspect of decisions made not in
accordance with the RP or with commitments given to them, or on which they
disagree with the level or manner of compensation, including land, house or
shop or stall relocation and compensation.

The main objectives of the grievance procedure are to provide a mechanism
to ensure that the compensation and resettlement programs have been
implemented accurately and fairly, alleviating any adverse effects on APs, to
mediate conflict and to avoid lengthy litigation that is unfair to APs and can
delay the project. It also provides people who have objections or concerns
about their assistance with an accessible and known procedure through which
to raise their objections and have them resolved.

The APs will be made fully aware of their rights to grievance and the
procedures by doing so verbally and in writing during consultation, survey and
time of compensation. The APs may present their complaints to the concerned
local administrative officials and the resettlement committees. The complaint
will be filed first at the village level/committee and will be elevated to the
highest or provincial level if the APs are not satisfied with the decisions made by
the village and district levels/committees. Local administrative authorities and
resettlement committees at each level will settle the complaint within 15 days.
The APs will be exempted from all taxes, administrative and legal fees.

Experiences show that not all APs have writing skills and the ability to express
grievances verbally. Therefore, the APs will be encouraged to seek assistance
from the Village Consultative Group (VCG), family members, village heads, or
community organizations in order to have their grievances recorded in writing
and to ensure that all disputes are properly recorded and resolved in a
participatory manner.

Every attempt will be made to settle the issues at the village level through
community consultation, involvement of social and resettlement experts as
required and concerned local-based organizations.       All complaints and
resolutions will be properly documented by the concerned Compensation and
Resettlement Committees.




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                                                   Mekong Tourism Development Project
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7. IMPLEMENTATION ARRANGEMENTS

National Tourism Authority of Laos PDR (NTAL)

The National Tourism Authority of Laos (NTAL) is the primary executing agency
and will oversee all subproject activities including RPs and will coordinate
closely with the Office of the Governor. NTAL will provide technical assistance
if necessary.


Office of the Provincial Governor

The Office of the Provincial Governor is responsible for the over-all planning,
implementation, monitoring of the Project including the RP. The Office of the
Governor will create a Provincial Project Implementation Office (PPIO) and will
be headed by a full-time Provincial Project Coordinator to coordinate,
manage and supervise all Project and resettlement-related activities. The PPIO
will coordinate closely with NTAL for over-all Project program and schedule,
Civil Aviation Office and DCTPC for design and civil works, and
PCRC/DCRC/VCRC for resettlement issues. The Office of the Governor will
report directly to ADB.


Compensation and Resettlement Committees

To date, the District Compensation and Resettlement Committee (DCRC) has
been created in April 2002 and is headed be the District Governor. The DCRC
is composed of members from the following district departments: Finance
Office, Police Office, Assets Office, Land Office, Construction Transportation,
Post and Communications and Village Chief of Vieng Neau village.

Their roles and responsibilities are to:

       •   hold consultation meetings with the APs and concerned groups;
       •   encourage community participation from project planning,
           implementation to monitoring;
       •   conduct census and Inventory and detailed measurement surveys;
       •   establish database of APs on socio-economic, physical losses, and
           income;
       •   determine the market rates /replacement cost for all kinds of loss
           incurred;
       •   act as grievance officers;
       •   carry out resettlement site development planning in consultation
           with APs;
       •   provide assistance to APs during compensation and relocation;
       •   prepare report regularly on progress and outstanding issues ; and
       •   monitor all RP activities

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                                                Mekong Tourism Development Project
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A Village Compensation and Resettlement Committee (VCRC) will also be
established since there will be relocation involved. This will be composed of
representatives from the APs, Village Chief, Village Land Office, Village
Women’s Union, Village Police and other village organizations such as farmers,
youth, and village elders. The responsibilities of the VCRC are, but not limited
to the following:

       •   ensure that all information regarding the project and RP activities are
           provided to APs;
       •   participate actively in all public meetings and consultations held by
           the Office of the Governor and PCRC/ DCRC;
       •   encourage the participation of APs from project planning to
           implementation;
       •   act as grievance officers at the village level and will forward
           complaints to DCRC if APs are not satisfied with the decisions;
       •   coordinate with the PCRC/DCRC on all project and RP-related
           activities;
       •   identify vulnerable groups (female-headed households, elderly,
           disabled) that will be needing special assistance during relocation).


Local Administrative Authorities

The concerned local administrative authorities play a very important role in the
planning and implementation of resettlement-related activities. Their roles and
responsibilities are to:

   •   coordinate and work closely with the concerned CRCs at all levels and
       other departments in relation to the conduct of consultation, census
       and social surveys and resettlement-related activities;
   •   act as grievance officers and ensure that grievance are resolved;
   •   assist APs during the negotiation and compensation process;
   •   involve the local-based organizations to carry out the RP activities;
   •   certify the list of APs and sign compensation documents;
   •   monitor and register new settlers in the area. The local authorities will be
       responsible for informing residents and new settlers not to construct
       houses/structures in the areas where there will improvement/
       construction.


Lao Women’s Union and Local-Based Organizations

Local-based organizations such as the Lao Women’s Union, Farmers, Elders,
Youth and Trade Union represent the Compensation and Resettlement
Committees at all levels. They will actively participate in the planning and
implementation of the RP and in the public information and consultation
programs.



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                                                Mekong Tourism Development Project
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Village Consultative Group

Consultation and people’s participation is integral in planning, management,
monitoring and evaluation. The participation of APs during implementation of
the RP and subsequent activities is even more critical than their participation
in the planning phase. A Village Consultative Group (VCG), composed of all
APs in Vieng Neua Village, will be created to ensure their participation in the
decision-making process during Project implementation.                 This group
approach is an effective forum for expressing their individual and communal
concerns and bringing them to the notice of the Project management. The
consultative group meetings will be held as and when necessary and at the
village level. Members of the VCG will be appointed and will represent APs or
act as liaisons in all meetings held at all levels to ensure that information and
decision made during the said meetings will be conveyed to all APs during
their regular consultative group meetings.

Project Supervision Consultants

The Project Supervision Consultants will have at least one (1)
Social/Resettlement Expert to assist and supervise all social and resettlement-
related activities. Their responsibilities are, but not limited to, the following:

•      Work closely with the local authorities and Compensation and
       Resettlement Committees at all levels on all resettlement-related
       activities;
•      Assist in the conduct of the information campaigns and community
       participation;
•      Assist in the verification of census, inventory of losses and detailed
       measurement survey activities;
•      Check the accuracy of the AP database prepared and provide
       improvements if necessary;
•      Assist in the preparation of an updated RP;
•      Assist and improve if necessary, procedures for the coordination of
       resettlement and compensation activities;
•      Ensure that grievances are addressed promptly and properly;
•      Establish and implement liaison mechanisms to ensure proper technical
       and logistical support to NTAL, Civil Aviation, Project Office, and
       Compensation and Resettlement Committees;
•      Establish and implement procedures for ongoing internal monitoring.




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                                                  Mekong Tourism Development Project
                                      Resettlement Plan: LAO: Luang Namtha Airport Improvement




8. RESETTLEMENT STRATEGIES

Consultation and Disclosure of Resettlement Documents

The Office of the Provincial and District Governors, Compensation and
Resettlement Committees will:

   •   Continue to implement consultation and public participation of APs
       throughout the duration of the Project.
   •   Public Information Booklet will be translated into Lao language and
       copies will be distributed to the affected communities prior to project
       resettlement implementation. Other forms of information dissemination
       (radio, local newsletter) will also be used.
   •   Create a Project database to record all meetings, agreements,
       grievances and actions taken for proper documentation.

All consultation and public participation activities will be supported by the
concerned departments, local administrative units and concerned groups. All
consultation and participation programs will be properly documented.


Updated RP


During Project Implementation, the RP will be updated and a joint validation of
losses and detailed measurement survey will be undertaken by the DCRC
together with the APs, local administrative authorities, VCG and local-based
organizations to maintain transparency and participation throughout the
compensation process. The compensation unit rates at replacement cost for
land and other assets will be established and will be used as compensation
rates for the Project.

Once replacement costs are established, the rates will be applied to the results
of the joint validation of losses and detailed measurement survey to calculate
entitlements for each AP. An “AP Compensation Form” will be prepared which
details all types of losses with its equivalent established rates. These rates will
be reviewed and updated on an annual basis during the course of project
implementation.


Payment to APs and Assistance During Relocation

DCRC will:
     a)        Prepare individual “AP Compensation Form” which details all types of
               losses with its corresponding established compensation rates. This will
               also include all types of relocation assistance.


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                                                Mekong Tourism Development Project
                                    Resettlement Plan: LAO: Luang Namtha Airport Improvement



       b)      Inform APs regarding payment schedule at least two (2) weeks in
               advance.

       c)      Present to APs proposed compensation amount. Explain in detail
               APs’ rights and entitlements based on Project policies and explain
               how compensation amount were calculated.

       d)      Leave the “AP Compensation Form” to APs for further review and
               inform AP to decide and submit the form within fourteen (14)
               days.

       e)      If compensation payment is acceptable to APs, process payment
               and inform APs of exact date of release of payment.

       f)      Effect compensation payment.         Copies of compensation
               payment documents will be provided to APs. Copies will also be
               provided to Project Supervision Consultants and external agency
               for monitoring and reporting.

       g)      Prepare and update regularly list of APs containing date of
               payment made to the AP data base for proper recording and
               monitoring.

       h)      Issue advance notification for land clearance upon receipt of
               compensation by APs.

APs will:

       a)      Seek assistance from VCG, family members during the
               compensation process. APs will request for clarification and
               explanation, if there is any.

       b)      Review carefully AP Compensation Form within fourteen (14)
               days. If APs are not satisfied with the proposed compensation
               payment or if there is disagreement between AP and PIO and
               resettlement committees, APs will file a complaint using the
               grievance process presented in this RP.

       c)      Sign the said documents and acknowledge receipt of
               compensation payment if all compensation documents are in
               order.

       d)      Request PIO and resettlement committee to reschedule day of
               payment if APs will not be available to claim compensation on
               the scheduled date.

       e)      Obtain one (1) copy of all compensation forms.

       f)      Clear the area within the specified time in order for construction
               works to begin.

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                                                Mekong Tourism Development Project
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CRC, local administrative authorities, local-based organizations will:

   a) Witness payment process based on the schedule made by DCRC.

   b) Ensure that APs are aware of their rights and entitlements.

   c) Document grievances if there is any.

   d) Sign as witness to the compensation activity.




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                                                     Mekong Tourism Development Project
                                         Resettlement Plan: LAO: Luang Namtha Airport Improvement




9. IMPLEMENTATION SCHEDULE

Subproject Resettlement Plans will include detailed implementation schedules
coordinated with the civil works schedule for the subproject. The schedule for
all resettlement activities will be agreed and settled by all stakeholders before
resettlement activities begin.

All subproject RPs will be reviewed prior to Broject implementation.

Satisfactory payment of compensation and provision of other rehabilitation
entitlements and relocation, if that be the case, will be completed before a no
objection from ADB will be provided for award of civil works contract.

Table 9-1 - Implementation Schedule
                                Tasks                                      Schedule
Undertake consultation and participation programs                          July 2003
Establish Provincial Project Office under the Office of the                July 2003
Provincial Governor
Establish Compensation and Resettlement Committees at all                  July 2003
Levels
Create Village Consultative Group                                          July 2003
Implement internal monitoring activities                                   July 2003
Mobilize External Monitoring Agency (random visits,                       August 2003
observations)
Carry out joint verification of Assets and detailed                September/October 2003
measurement survey
Update compensation rates and apply Project entitlements          September/October 2003
Update RP and obtain ADB concurrence                                   October 2003
Implement External monitoring –Benchmark KARE                          October 2003
Develop Resettlement Site                                         October/November 2003
Present Compensation Payment to APs                                    October 2003
Effect Compensation Payment                                           November 2003
Assist in the relocation of APs                                 December 2003-February 2004
Implement External monitoring -post-evaluation KARE                     April 2004




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                                                         Mekong Tourism Development Project
                                             Resettlement Plan: LAO: Luang Namtha Airport Improvement




10.    SUPERVISION, MONITORING AND EVALUATION


The objectives of the monitoring program are (i) to ensure that the standard of
living of APs are restored or improved; (ii) to monitor whether the overall project
and resettlement objectives are being met; (iii) to assess if rehabilitation
measures and compensation are sufficient; (iv) to identify problems or potential
problems; and (v) to identify methods of responding immediately to mitigate
problems.

A monitoring and evaluation program will be implemented to (a) record and
assess project inputs and the number of persons affected and compensated,
and (b) confirm that former subsistence levels and living standards are being
re-established.

The range of activities and issues that would therefore have to be recorded
and checked, include:
   •   land acquisition and transfer procedures;
   •   compensation payments;
   •   construction of replacement houses by APs;
   •   re-establishment of APs and business enterprises;
   •   reaction of APs, in particular, to resettlement and compensation
       packages; and
   •   re-establishment of income levels.

Table 10-1 - Monitoring and Evaluation Indicators
   Type            Indicator                             Examples of Variables

PROCESS        Staffing              •   Number of Project staff and job function
INDICATOR                            •   Number of department and local administrative officials
                                          available for tasks
                                     •   Number of CRC members and job function
               Consultation,         •   Number of consultation and participation programs held with
               Participation , and        various stakeholders
               Grievance             •   Number of VCG members and number of meetings held
               Resolution            •   Grievances by type and resolution
                                     •   Number of local-based organizations participating in project
               Procedures in         •   Census and asset verification/quantification procedures in
               Operation             place
                                     •   Effectiveness of compensation delivery system
                                     •   Number of land transfers effected
                                     •   Coordination between Office of the Governor and other
                                          agencies
OUTPUT         Acquisition of        •   Area of cultivation land acquired
INDICATOR      Land                  •   Area of communal/government land acquired
               Buildings             •   Number, type and size of private houses/structures acquired
                                     •   Number, type and size of community buildings acquired
               Trees and Crops       •   Number and type of private trees acquired
                                     •   Number and type of government/community trees acquired
                                     •   Number and type of crops acquired
                                     •   Crops destroyed by area, type and number of owners

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                                                       Mekong Tourism Development Project
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   Type            Indicator                            Examples of Variables

               Compensation        •   Number of households affected (land, buildings, trees, crops)
               and                 •   Number of owners compensated by type of loss
               Rehabilitation      •   Amount compensated by type and owner
                                   •   Number and amount of payment paid
                                   •   Number of replacement houses constructed by concerned
                                         owners
                                   •   Number of replacement businesses constructed by
                                         concerned owners
                                   •   Number of owners requesting assistance for additional
                                        replacement land
                                   •   Number of replacement land purchases effected
                                   •   Number of delivery of entitlements
                                   •   Number of use of entitlements by APs
                                   •   Suitability of entitlements to APs as per RP objectives
               Reestablishment     •   Number of community buildings repaired or replaced
               of                  •   Number of seedlings supplied by type
               Community           •   Number of trees planted by government agency
               Resources           •   Number of basic services such as electricity, water supply,
                                         roads, sanitation and drainage
IMPACT         Household           •   Employment status of economically active members
INDICATOR      Earning             •   Landholding size, area cultivated and production volume, by
               Capacity                  crop
                                   •   Selling of cultivation land
                                   •   Changes to livestock ownership – pre- and post disturbance
                                   •   Changes to income-earning activities (agriculture) – pre- and
                                         post disturbance
                                   •   Changes to income-earning activities (off-farm) – pre- and
                                         post disturbance
                                   •   Amount and balance of income and expenditure
               Changes to Status   •   Participation in community-based programs
               of                  •   Participation in airport construction
               Women               •   Participation in commercial enterprises
               Changes to Status   •   School attendance rates (male/female)
               of                  •   Participation in airport construction
               Children
               Settlement and      •   Growth in number and size of settlements
               Population          •   growth in market areas
                                   •   Influx of illegal settlers/squatters

The various indicators and benchmarks will be monitored by means of two
monitoring mechanisms:

   •   ongoing internal monitoring of process and output indicators at both
       Central and Project level;
   •   external monitoring and evaluation by an external agency to assess the
       extent to which resettlement and rehabilitation objectives have been
       met.




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                                                 Mekong Tourism Development Project
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Internal Monitoring

The Office of the Governor at the provincial and district levels and
Compensation and Resettlement Committees at all levels are responsible for
the internal monitoring of RP implementation.            They will supervise the
resettlement activities and will provide quarterly reports to NTAL and ADB. They
will ensure that the reports of the Project Supervision Consultants include in their
progress reports, status of the resettlement plans, and information on location
and numbers of people affected, compensation amounts paid by item,
relocation, grievances and assistance provided to APs.

Baseline information on the socio-economic situation of APs has been properly
recorded and filed during the preparation of this RP. This database will be
used to assist the external monitoring agency to evaluate the overall
effectiveness of the RP.

The ADB will also monitor these activities in its regular supervision missions during
the period of project implementation.


External Monitoring and Post-Evaluation

External Monitoring and Post-Evaluation exercise will be an additional method
through which the attainment of resettlement and compensation objectives
will be assessed. A suitably qualified domestic agency will be engaged to
undertake monitoring and post-evaluation exercises.

External Monitoring will be of two kinds: random observation visits and
consultation with APs. Conduct of community workshops or focus groups will
also provide APs the opportunity to discuss both the positive and negative
aspects of their resettlement, compensation and re-establishment. An
inclusive problem-solving approach will be followed, using local experiences
and realities as the basis for solutions.

One monitoring survey of a sample of APs known as Knowledge, Attitude,
Response and Experience or KARE survey will be undertaken using the same
survey questionnaire as for the baseline survey to obtain comparable data to
determine the status and/or progress in meeting Project objectives. As shown
in Monitoring and Evaluation Indicators in Table 10-1, one of the purposes of
the KARE survey is to establish a long-term basis for the monitoring and ongoing
evaluation of the varying awareness, responses to, actions and experience of
APs based on the same panel sample of households. Apart from the impact of
resettlement to APs, it will also allow in the monitoring and evaluation of the
benefits and developmental opportunities brought or will bring about by the
Project over time.



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                                              Mekong Tourism Development Project
                                  Resettlement Plan: LAO: Luang Namtha Airport Improvement



The KARE survey will be carried out in two (2) stages: i) benchmark
questionnaire survey based on a sub-sample drawn from the 100 percent
population and ii) follow-up survey using the same panel sample. The latter
will be carried out six months later.

External monitoring activities will commence for a period of one year. The
domestic team will be composed of one (1) Sociologist or Social Development
Specialist and two (2) social enumerators. All reports will be submitted to the
Office of the Governor, NTAL and ADB.

Post-evaluation activities will also be carried out one (1) year after the
completion of all relocation activities.




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                                                       Mekong Tourism Development Project
                                          Resettlement Plan: LAO: Luang Namtha Airport Improvement




11.     COST ESTIMATES

The RP budget will only be considered as estimates.           During Project
implementation, the costs will have to be revised and updated in order to
meet any budget shortfalls and to achieve the resettlement objectives.

Rates are base-dated             July    2002,    at   the    following     exchange        rate:
1USD=10,000kip.

Compensation for Land

Land-for-land arrangements will be applied. The government has proposed an
area of 18x20 sq.m of land for each AP at the new resettlement site. All APs,
including those households who have no land at the affected site (APs sharing
land with their relatives) will also be allocated with land at the new
resettlement site.


Compensation for Affected Houses and Structures

The estimates shown below are based on the survey carried out in July 2002.
These costs are equivalent to full replacement costs. Unit rates were provided
by the residents and the village chief of Vieng Neau Village. During Project
implementation, a joint validation of losses detailed measurement survey will
be carried out with APs. The compensation rates for all types of losses will also
be established and will be applied to process compensation payment to each
AP.

The estimates calculated for affected houses and other structures is at
                                              1,573,742,125kip (USD157,374).

Table 11-1 – Cost Estimates: Houses and Structures
       House and Structures                   Quantity                 Cost Estimates (KIP)
House                                               109                            1,439,942,725
Shops                                                  6                                7,000,000
Toilet                                                  66                             15,370,000
Kitchen                                                 91                             67,079,400
Rice storage                                            76                             39,015,000
Pigpen                                                  12                              1,360,000
Chicken                                                  7                                355,000
Buffalo stable                                           8                                720,000
Others(fences, garage)                                   7                              2,900,000
Temple*                                                  1                           536,650,000
TOTAL COST ESTIMATES                                                               1,573,742,125
* Please note that the temple will not be affected but will be moved to the new resettlement site
based on the requests of the APs.




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                                                                  Mekong Tourism Development Project
                                                   Resettlement Plan: LAO: Luang Namtha Airport Improvement



Compensation for Trees

The values of trees were calculated based the annual produce value
multiplied by a five (5) years factor. This will compensate for lost income until
the newly planted seedlings bear fruit.

Information were collected from residents, farmers, and the Ministry of Forestry
and Agriculture in July 2002. Table 11-2 shows the value of trees.

Table 11-2 - Value of Trees (in KIP)
                                   Average    Ave. Selling        Average
                                                                                Compensation
                       Cost of      annual      Price in           Annual                           Total Value per
    Type of Trees                                                                 Value for 5
                      Seedling     Produce      Luang            Produce of                               tree
                                                                                years lost yield
                                   per Tree    Namtha               Tree
coconut                  8000         50        1,000/pc          50,000              250,000          258,000
Mango                    7000         30        1,000/kg          30,000              150,000          157,000
tamarind                 7000         30        3,000/kg          90,000              450,000          457,000
Longan                   7000         25        3,000/kg          75,000              375,000          382,000
Lemon                    6000        100        1,000/pc          100,000             500,000          506,000
Custard apple            3000         20        3,500/kg          70,000              350,000          353,000
others                                10        1,000/kg          30,000              150,000          150,000
jackfruit                             10        1,000/pc          30,000              150,000          150,000
grapefruit                            10        1,000/kg          30,000              100,000          100,000
teakwood                                                          20,000              100,000          100,000
bamboo                                                            30,000              150,000          150,000


Based on the value of trees described above, the total amount allocated for
affected trees is at                          404,234,000kip (USD40,423).

Table 11-3 – Cost Estimates: Trees
                            Type of Trees               Qty.          Total Value per           Cost Estimates
                                                                            tree
1             coconut                                    356              258,000                   91,848,000
2             mango                                      496                157,000                 77,872,000
3             tamarind                                   141                457,000                 64,437,000
4             longan                                     122                382,000                 46,604,000
5             lemon                                      41                 506,000                 20,746,000
6             custard apple                                  9              353,000                 3,177,000
7             others *                                   127                150,000                 19,050,000
8             jackfruit *                                40                 150,000                 6,000,000
9             grapefruit *                               71                 100,000                 10,650,000
10            teakwood                                   28                 100,000                 2,800,000
11            bamboo                                     407                150,000                 61,050,000
              TOTAL COST ESTIMATES                                                                 404,234,000




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                                                     Mekong Tourism Development Project
                                         Resettlement Plan: LAO: Luang Namtha Airport Improvement




Cost Estimates for the Resettlement Site Development

Preliminary designs and cost estimates were calculated by the DCRC and
DCTPC. The amount will be updated during Project implementation.

Table 11-4 – Cost Estimates: Resettlement Site Development
                 Details                    Qty           Unit Price (USD)   Cost Estimates (USD)
Road (13.7 km)                                                                      555,600,000
    Clearance (sq.m)                       37,800              2,500.00
    Access Road – New (sq.m.)              76,500              2,500.00
    Grading (sq.m.)                        40,500              2,500.00
    Drainage (cm)                          27,400              2,500.00
    Drainage (60 cm)                        154             650,000.00
Water Supply                                                                       2,000,000,000
Electricity (22kV-high voltage) (km)        13.7           120,000,000             1,644,000,000
TOTAL COST ESTIMATES                                                              4,199,600,000



Relocation and Rehabilitation Allowance

The total amount allocated for this item is estimated at                         251,400,000kip
(USD25,140).

Table 11-5 – Cost Estimates: Relocation and Rehabilitation Allowance
Type Of Allowance                          No. of APs         Entitlement per      Cost Estimates
                                                                 AP (USD)              (USD)
Materials Transport Allowance                       109           1,000,000.00          109,000,000
Housing Transition Allowance                        109           1,200,000.00         130,800,000
Business Transition Allowance                        6            1,200,000.00           7,200,000
Special Assistance for Vulnerable APs*               22             200,000.00           4,400,000
TOTAL COST ESTIMATES                                                                   251,400,000
*20% of the total APs are considered vulnerable (poor) based on the Social and Poverty Impact
Analysis conducted in July 2002




October 2002                                                                                 11-3
                                                     Mekong Tourism Development Project
                                         Resettlement Plan: LAO: Luang Namtha Airport Improvement




External Monitoring and Post Evaluation

The estimated budget for external monitoring and post-evaluation activities is
74,000,000kip (USD7,400).

Table 11-6 – Cost Estimates: External Monitoring and Post Evaluation Activities
                                     Activities                                         Cost
                                                                                     Estimates
A   Random visits (3 visits)
    One (1) Sociologist/Social Development Specialist (@USD100x12 person-days)       12,000,000
    Admin Cost (airfare, transportation, reporting)                                   5,000,000

B   Conduct of KARE Survey (in two stages)
    One (1) Sociologist / Social Development Specialist (@USD100x20persondays)       20,000,000
    Two (2) Social Enumerators (@USD20x40persondays)                                  8,000,000
    Admin Cost (airfare, transportation, survey materials, reporting)                10,000,000

C   Post-Evaluation
    One (1) Sociologist / Social Development Specialist (@USD100x10persondays)       10,000,000
    Two (2) Social Enumerators (@USD20x20persondays)                                  4,000,000
    Admin Cost (airfare, transportation, survey materials, reporting)                 5,000,000
     TOTAL COST ESTIMATES                                                           74,000,000


Administrative /Operational Costs

The Project will allocate 10 percent of the total compensation cost for
operational cost/administrative costs.         These include consultation,
dissemination and participation programs, grievance redressals, joint validation
of inventory and detailed measurement survey, processing of compensation
payment and internal monitoring.

The amount is calculated at                            703,962,613 KIP (USD70,396)


Contingencies

The amount allocated for contingencies (10%) is 774,358,874kip (USD77,436).




October 2002                                                                                11-4
                                                            Mekong Tourism Development Project
                                               Resettlement Plan: LAO: Luang Namtha Airport Improvement




Total RP Cost Estimates

The total cost estimates for this Project is                   8,517,947,611KIP (USD851,795).

Table 11-7 - Total Cost Estimates
                              ITEMS                            TOTAL COST               TOTAL COST
                                                             ESTIMATES (KIP)          ESTIMATES (USD)
 A.      Land, houses and structures
 1       Land                                                 land-for-land              land-for-land
 2       House                                                    1,439,942,725                    143,994
 3       Shops                                                         7,000,000                       700
 4       Toilet                                                      15,370,000                      1,537
 5       Kitchen                                                     67,079,400                      6,708
 6       Rice storage                                                39,015,000                      3,902
 7       Pigpen                                                        1,360,000                       136
 8       Chicken                                                         355,000                         36
 9       Buffalo stable                                                  720,000                         72
 10      Others                                                        2,900,000                       290
 11      Temple                                                     536,650,000                     53,665
 B.      Trees                                                      404,948,000                     40,495
 C       Resettlement Site Development
 1       Land
 2       Road Development                                           555,600,000                     55,560
 3       Provision of Water Supply                                2,000,000,000                    200,000
 4       Provision of Electricity                                 1,644,000,000                    164,400
 D       Rehabilitation Allowance
 1       Materials Transport Allowance                              109,000,000                     10,900
 2       Housing Transition Allowance                               130,800,000                     13,080
 3       Business Transition Allowance                                 7,200,000                       720
 4       Special Assistance                                            4,400,000                       440
 E       External Monitoring Agency                                  74,000,000                      7,400
                                                                                                    70,396
 E       Administrative/Operational costs (10%)
                                                                    703,962,613
         Sub-Total (A-E)                                          7,743,588,738                   774,359
 F.      Contingency (10%)                                          774,358,874                     77,436
 G.      RP TOTAL COST ESTIMATES                                  8,517,947,611                   851,795
A1        18 x 20 sq.m. of land to be allocated to AP at the new resettlement site
A2-A11    Government will provide additional materials at no cost to RPs
C1        Government property to be developed at no cost to APs.
C2-C3     As estimated by DCTPC based on preliminary designs
D1         For budget purposes only. Government will provide labor and army trucks during relocation. Cash
          assistance will be provided if labor and army trucks cannot accommodate all APs
D4        20% are considered poor based on the Social Impact Analysis conducted in July 2002.
G.        RP cost will be updated and revised during Project implementation to meet budget shortfalls and
          achieve the resettlement objectives.




October 2002                                                                                         11-5
                                       Mekong Tourism Development Project
                                               Annex 1: Public Information Booklet




                 FIGURE 1: PROPOSED AIRPORT PROJECT


                            INSERT MAP




               LUANG NAMTHA AIRPORT IMPROVEMENT

                 PUBLIC INFORMATION BOOKLET
                             Prepared by:

                   National Tourism Authority of Lao
                                  and
                Provincial Government of Luang Namtha


                             October 2002

October 2002                                                                 11-2
                                                  Mekong Tourism Development Project
                                                            Annex 1: Public Information Booklet



1. QUESTION: WHAT IS THE MEKONG TOURISM DEVELOPMENT PROJECT?

ANSWER: The Lao PDR, together with the Royal Kingdom of Cambodia and Socialist
Republic of Vietnam, and with assistance from the Asian Development Bank (ADB),
intends to promote sustainable tourism development through the improvement of
infrastructure projects, pro-poor and community based sustainable tourism, and sub-
regional cooperation in order to protect the Mekong River, its environs and its cultural
heritage.

2. QUESTION: IS IT TRUE THAT YOU ARE GOING TO IMPROVE LUANG
NAMTHA AIRPORT?

ANSWER: Yes. One of the sub-projects in Lao is to improve Luang Namtha airport
which include the resurfacing and extension of the runway, a new taxiway and apron,
runway grading and drainage system, a new passenger terminal, fence of terminal
area, control tower and operation building, navigation and communication equipment.


3. QUESTION: WILL WE BE AFFECTED BY THE AIRPORT IMPROVEMENT?

ANSWER: The design and construction of the airport will attempt to avoid or at least
minimize the impacts on the communities. Based on the initial census and inventory of
potential losses of physical assets conducted last August 2002, there are some
affected houses, residential and agriculture land and other properties of the people
identified within the proposed improvement. During detailed design, these potential
effects may be avoided or minimized since actual alignments will be determined
through consultation with you and the rest of the local communities. After detailed
design, the area that will be affected by the Project will be marked on the ground and
houses will be marked so APs will know that they will be affected.

In case the effects on land, houses and structures can not be avoided, affected
persons (APs) will be properly compensated in cash or in kind for their land, houses,
structures, crops and trees and even communal properties in order for them to restore
their lost assets, resource or income. Rehabilitation assistance will also be provided to
APs who will be required to relocate in another location within their village.

4. QUESTION: WHAT IF MY LAND WILL BE AFFECTED BY THE PROJECT?

ANSWER: A resettlement site has been identified and will be developed by the
Government of Luang Namtha. The area is is just across Vieng Neua Village or within
1 km away from. Each Project Affected Person (AP) will be provided with a residential
land area The resettlement site will be developed and basic infrastructures such as
electricity, roads and water supply will be provided. Final design of the resettlement
site will be carried out during Project implementation. Those APs who have no land
and have sharing housing arrangements with other APs in the affected village will also
be provided residential land at the new site.




October 2002                                                                              11-3
                                                   Mekong Tourism Development Project
                                                              Annex 1: Public Information Booklet




5. QUESTION: DO WE NEED TO HAVE A LAND TITLE IN ORDER TO BE
COMPENSATED?

ANSWER: No. Lack of formal legal rights to land does not prevent any APs from
receiving compensation and rehabilitation assistance. All people who were occupying
or using the affected land at the time of the official cut-off date will be entitled to full
compensation and assistance under the Project.

6. Question: DOES COMPENSATION APPLY TO MY AFFECTED HOUSES OR
STRUCTURES?

ANSWER: Yes. Houses and structures that will be affected by the project will be
compensated at replacement cost sufficient for you to rebuild a house/structure of the
same size and standard and without deduction for depreciation or salvageable
materials.


7. QUESTION: WHAT ABOUT MY CROPS AND TREES?

ANSWER: Affected crops and trees will be compensated at current market value.
Compensation for crops will be based on the anticipated harvest at market value while
trees will be based on the type, age and productivity.


8. QUESTION: WHAT ABOUT OUR COMMON PROPERTY RESOURCES?


ANSWER: For common property resources, the affected land will be replaced in areas
identified in consultation with affected communities and relevant organizations.
Affected buildings and structures will be restored to original or better condition. If
community income loss is expected (e.g. irrigation, community forest, income from
fishpond), the affected village will be entitled to compensation for the total production
loss (over 3 years). This compensation should be used collectively for income
restoration measures and/or new infrastructures.

9. QUESTION: HOW DO YOU DETERMINE REPLACEMENT COST OR CURRENT
MARKET VALUE FOR OUR LAND AND OTHER ASSETS?

ANSWER: The compensation unit rates at replacement cost for land and other assets
will be established and will be used as compensation rates for the Project. Once
replacement costs are established, the rates will be applied to the results of the joint
validation of losses and detailed measurement survey to calculate entitlements for
each AP. These rates will be reviewed and updated on an annual basis during the
course of project implementation.

10. QUESTION: IN CASE THERE WILL BE RELOCATION OF HOUSES OR
BUSINESS INVOLVED,HOW CAN THE PROJECT HELP ME REBUILD MY
HOUSES DURING RELOCATION?

ANSWER: Apart from the compensation for loss of land and other assets at
replacement costs, the Project will ensure that the standard of living of APs is

October 2002                                                                                11-4
                                                 Mekong Tourism Development Project
                                                           Annex 1: Public Information Booklet



maintained or improved after the Project. Therefore, the Project shall provide
relocation and subsistence allowance to relocating APs:

•       Housing Relocation Allowance of 1,200,000kip or equivalent to 30kg or rice
        per person in the household for six (6) months whichever is greater.
•       Business Relocation Allowance of 1,200,000kip or equivalent to 30kg or
        rice per person in the household for six (6) months whichever is greater.
•       Special Assistance for socially and economically vulnerable households
        like the very poor or households headed by the aged, women, disabled without
        support will be entitled to an additional special allowances amounting to
        200,000kip per household based on identified needs and priorities.

11. QUESTION: DOES THAT MEAN THAT ANYBODY IN OUR COMMUNITY CAN
CLAIM FOR COMPENSATION?

ANSWER: No. Entitled APs are those persons who will have been surveyed during the
detailed measurement survey. Cut-off-date of eligibility is the date that the survey is
completed. Persons who encroach the area after the cut-off-date will not be entitled to
compensation or any other form of resettlement assistance.

12. QUESTION: DO WE NEED TO CLEAR THE AFFECTED AREA IMMEDIATELY
ONCE OUR LAND, HOUSES OR STRUCTURES HAVE BEEN IDENTIFIED AS
AFFECTED?

ANSWER: No. Clearing the project area will only take place after compensation for
affected land or other lost assets has been received by APs and that basic
infrastructures (electricity, water, roads) at the new resettlement site have been in
place. After the AP has acknowledged receipt of payment, the Project shall provide a
reasonable time and assistance for APs to clear the area in order for construction
activities to commence.

13. QUESTION: DO WE NEED TO PAY ANY ADMINISTRATIVE OR SERVICE
FEES TO THE PROJECT ONCE WE RECEIVE OUR COMPENSATION?

ANSWER: No. The APs are not allowed to pay any service fees or donations. APs
who are asked for service fees or donation by any government or project staff in the
area must report directly to Provincial authority or to the Project Coordination Unit,
Ministry of Tourism.


14. QUESTION: IF THERE WILL BE DISAGREEMENTS OR PROBLEMS THAT
ARISE DURING PROJECT IMPLEMENTATION SUCH AS COMPENSATION,
TECHNICAL AND GENERAL PROJECT-RELATED DISPUTES? DO I HAVE THE
RIGHT TO VOICE OUT MY COMPLAINT?

ANSWER: Yes. Any AP may file a complaint. The APs may present their complaints
to the concerned local administrative officials and resettlement committees. The
complaint can be filed first at the village level and can be elevated to the highest or
provincial level if the APs are not satisfied with the decisions made by the village and
district levels/committees. APs will be exempted from all taxes, administrative and
legal fees.

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                                                          Mekong Tourism Development Project
                                                                      Annex 1: Public Information Booklet



Attempts will be made to settle the issues at the village level through community
consultation, involvement of social and resettlement experts as required, NGOs and
mediators and facilitators if required. The concerned resettlement committees will
properly document all complaints and resolutions.
15. QUESTION: WHEN IS THE PROJECT EXPECTED TO COMMENCE?

ANSWER: The civil works is expected to start in June 2003 and be completed at the
end of 2008.

16. QUESTION: AS A RESIDENT OF LUANG NAMTHA PROVINCE, WHAT CAN I
DO TO HELP?

ANSWER: We would like you to participate fully in all consultation meetings and other
project-related activities to ensure that you are fully informed and your views are
known and taken into account. Your active participation during the survey, detailed
design and implementation will allow us to determine measures to mitigate impacts, to
identify problems or potential problems, and to identify methods of responding
immediately to mitigate these problems.

17. QUESTION: HOW WILL YOU KNOW IF THE OBJECTIVES OF THIS PROJECT
ARE MET?

The National Tourism of Lao and the Provincial Government will monitor all project
activities. A independent agency will also be engaged to monitor and report on
resettlement implementation and recommend solutions to problems that APs may
raise. Quarterly Reports will be prepared and submitted to ADB and NTAL. A post-
resettlement impact evaluation will also be undertaken to assess whether impacts of
the Project have been mitigated adequately and the pre-project standard of living of
APs have been restored as a result of the resettlement and project.

The ADB will also monitor these activities in its regular supervision missions during the
period of project implementation.




If you have further queries and suggestions, please call or see us at:
Province of Luang Namtha -Office of the Governor :_______________________________
NTAL- Project Coordination Unit :__________________________________________




October 2002                                                                                        11-6

								
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