LAO PDR: AGRICULTURAL DEVELOPMENT …...2015/09/21  · LAO PDR: AGRICULTURAL DEVELOPMENT PROGRAM POLICY FRAMEWORK FOR COMPENSATION, RESETTLEMENT AND REHABILITATION OF PROJECT AFFECTED

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LAO PDR: AGRICULTURAL DEVELOPMENT PROGRAM

POLICY FRAMEWORK FOR COMPENSATION, RESETTLEMENT AND REHABILITATION OFPROJECT AFFECTED PERSONS

November 2000

A. The Project

1. The Lao People's Democratic Republic (Lao PDR) is one of the poorest and leastdeveloped countries in East Asia. Rural poverty, found primarily in farming households who liveat the subsistence level, is a major concern. At the same time, agriculture remains the majorsector of the economy. Against this background, and based on discussions with the Government,the proposed project should be designed to initiate a program of investments and institutionalcapacity building needed to support agricultural growth, and thereby reduce rural poverty. Astrong emphasis on community involvement and participation will be an integral feature of theproposed project.

2. Four provinces - Khammouane, Champasak, Saravane and Attapeu, all located in thesouthern half of the country - have been proposed by the Government, based on several criteria,for the project. Poverty is widespread in all four provinces; its incidence is particularly high inthe latter two. Attapeu, to the extreme south, is difficult to reach, and is isolated due to the lackof good roads.

3. The magnitude of adverse impact from the Project is anticipated to be very marginal(based on available information, no land acquisition and involuntary resettlement is expected) asthe infrastructure components will focus on rehabilitation of existing irrigation systems andaccess tracks and the construction of hand pumps and open wells. However, it is possible thatduring the course of implementation some land may need to be acquired and some compensationmay need to be paid to project affected persons (PAPs). To adequately address the rehabilitationand compensation of the people who could possibly be affected by the acquisition of land underthe Project, the Government of the Lao PDR and LADP has adopted this Policy Framework forLand Acquisition, Involuntary Resettlement and Rehabilitation of Project Affected Persons (theResettlement Policy). It will be implemented by the respective units (e.g., Department ofIrrigation for irrigation systems, Department of Transport and Communications for access tracks,and Department of Public Health for water supply) together with the Provincial ProjectImplementation Office under the coordination of the MAF National Project Office.

B. Resettlement Policy

4. The Resettlement Policy will adopt the principles of previous resettlement policiesprepared for Bank-assisted projects in the country. The principle objective of the Policy is toensure that all (PAPs) will be compensated for their losses at replacement costand provided withrehabilitation measures to assist them to improve, or at least maintain, their pre-project livingstandards and income earning capacity.

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5. The Policy lays down the principles and objectives, eligibility criteria of PAPs,entitlements/compensation, legal and institutional framework, modes of compensation andrehabilitation, peoples participation features and grievances procedures that will guide thecompensation, resettlement and rehabilitation of the PAPs.

C. Project Affected People

6. The project affected people (PAP) include the following persons to be identified by thebaseline information collected for each of the sub-projects where there are land, property or assetacquisition:

(a) persons whose houses and other structures are in part or in total affected (temporarilyor permanently) by the project;

(b) persons whose agricultural/residential and commercial land is in part or in totalaffected (permanently or temporarily) by the project;

(c) persons whose businesses are affected in part or in total (temporarily or permanently)by the project;

(d) persons whose crops (annual and perennial) and trees are affected by the Project; and(e) person whose other assets are affected by the project.

D. Principles and Objectives

7. The principles outlined in the World Bank's Operational Directives 4.30 on InvoluntaryResettlement have been adopted in preparing this Policy framework. In this regard the followingprinciples and objectives would be applied:

(a) Acquisition of land and other assets, and resettlement of people will be minimized asmuch as possible.

(b) All PAPs are identified in the project impacted areas as of the date of thebaselinesurveys (see paragraph 17). They are entitled to be provided with rehabilitation measuressufficient to assist them to improve or at least maintain their pre-project living standards,income earning capacity and production levels. Lack of legal rights to the assets lost will notbar the PAP from entitlement/compensation to such rehabilitation measures.

(c) The rehabilitation measures to be provided are: (i) cash compensation at replacementcost without deduction for depreciation or salvage materials for houses and other structures;(ii) agricultural land for land of equal productive capacity acceptable to the PAP;I (iii)replacement of residential and commercial land of equal size acceptable to the PAP; (iv) andtransfer and subsistence allowances.

(d) Replacement residential and agricultural land will be as nearby as possible to the landthat was lost, and acceptable to the PAP.

"Agricultural land for land of equal productive capacity" means that the land provided as compensationshould be able to produce the same or better yield the PAP was producing on his/her previous land. Theproduction should be in the planting season inmediately following the land acquisition. It can be for afuture period if transitional allowance equal to the household's previous yield is provided to the PAPhousehold while waiting for the land to get back to the same productivity as the previous land.

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(e) Plans for acquisition of land and other assets and provision of rehabilitation measureswill be carried out in consultation with the PAPs, to ensure minimal disturbance.

(f) The compensation, resettlement and rehabilitation activities will be satisfactorilycompleted before a no objection from the World Bank will be provided for award of contractof civil works under each sub-project See section on Institutional Arrangements forresponsibilities.

(g) The sources of funding for the compensation and rehabilitation of PAPs will befunded as follows: compensation for productive, residential and commercial land will comefrom the village land through the approval of the Governor's Office; and cashcompensation for structures, trees, crops, income loss and rehabilitation assistance willcome from the provincial counterpart fund in the Project.

(h) The MAF-National Project Office will see that institutional arrangements are in placeto ensure effective and timely design, planning, consultation and implementation of thecompensation program.

E. Partial Resettlement Plan

8. In case where the impact of land and property acquisition by the each sub project2component are minor , a partial Resettlement Plan for each such project component will be

prepared by the respective Provincial Project Implementation Office (PPIO) and submitted to theWorld Bank for its concurrence.

9. Each partial Resettlement Plan will include: (a) an inventory; (b) a socioeconomicsurvey; (c) detailed compensation and entitlement information; (d) payment and rehabilitationschedule; and (e) cost estimate and funding source. The forms are found in the attachments. Theimplementation arrangements are discussed in paragraph 17.

10. The partial Resettlement Plan will be implemented and compensation completedsatisfactorily before an approval can be provided by the NPO for award of civil works contractunder each sub-project.

F. Full Resettlement Plans

11. In case where the impact of land and property acquisition by the each sub projectcomponent are significant3, a full Resettlement Action Plan for each sub project component willbe prepared by the respective PPIO in accordance with the provisions of this Policy. The fullplan will be submitted by the National Project Office (NPO) to the World Bank for itsconcurrence.

12. Each Plan will include: (a) an inventory; (b) a socioeconomic survey; (c) detailedcompensation and entitlement information; (d) implementation and rehabilitation activities; (e)

2 Impacts are considered minor if no affected people are physically displaced and less than 10 % of theirproductive assets are lost.Impacts are considered significant if the following conditions apply:* the affected people are physically displaced and more than 10 % of a household's productive

assets are lost; or* 200 or more people are affected for each sub-project (as per OD 4.30).

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grievance procedures; (f) arrangements for monitoring and evaluation, (g) implementationschedule and; and (h) cost estimate and funding source. The implementation arrangements arediscussed in paragraph 17.

13. The MAF-National Project Office will ensure that the compensation, resettlement andrehabilitation activities will be satisfactorily completed before a no objection from the WorldBank will be provided for award of contract of civil works under each sub-project.

14. The sources of funding for compensation and rehabilitation of the PAPs will be funded asfollows: compensation for productive, residential and commercial land will come from the villageland through the approval of the Governor's Office; and cash compensation for structures, trees,crops, income loss and rehabilitation assistance will come from the provincial counterpart fund inthe Project. See paragraph 17 for implementing arrangements.

G. Village Investment for the Poor

15. The Project will have a community-driven development component known as VillageInvestment for the Poor (VIP). This component will have a menu which will include activitiesrelated primarily to agricultural production, livestock and livelihood activities. Should a VIP sub-project be approved which requires land and/or property acquisition, this policy will apply andthe cost will be borne by the proponent group and the village.

H. Legal Framework

16. The legal context in Lao PDR has been changing rapidly over the last few years. Aconstitution was introduced in 1991, forestry and water resources laws in 1996, and land law in1997. While they are subject to interpretation, the various legislative initiatives provide a legalfoundation for the consideration of resettlement and compensation.

The Constitution (August 14, 1991)

Article 8: All ethnic groups have the right to protect, preserve and promote their finecustoms and culture. All acts of division and discrimination among ethnicgroups are prohibited.

Article 22: Lao citizens are all equal before the law.

On Forestry, No. 001 (October 11,1996)

Article 7: Individuals and organizations having received forest and forest land allocationsfrom the State for their preservation and management shall be entitled tocompensation and interest, such as the use of wood, gathering of forestryproduce, etc.

Article 59: The forest and forestry operations management agencies include the Ministry ofAgriculture and Forestry, the Provincial/Municipal Agriculture-ForestryServices, the District Agriculture-Forestry Offices and the Village administrativeauthorities.

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On Water and Water Resources, No. 006 (October, 1996)

Article 28: When resettlement is necessary from the area and vicinity of water sourcesdevelopment projects, project owners shall provide assistance in providingappropriate shelters and livelihoods for the resettled population. The funds usedto finance resettlement assistance or compensation to the population shall beincluded in the projects' investment.

Preservation of Cultural Heritage

Notice No 943, implementing Article 19 of the Constitution of Lao PDR, Decrees No. 99, 174,194 of the Prime Minister of Lao PDR (19 December 1992, 13 December 1993 and 12 November1994 respectively) covers preservation of historic sites, traditional and artistic heritage, traditionalarchitecture and places of worship (more than 50 years old). The regulations prohibit removal,destruction or alteration of these items without authorization of GOL.

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

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

Article 18: The district ... may grant the right to use agricultural land within itsadministration...

Article 21: The State authorizes individuals to use forests lands (defoliated or degraded) notto exceed three hectares per one laborer in a family

Article 22: The district ... may grant the right to use forest land within its administration...

Article 63 The right of an individual to use land shall terminate when the State takes backthe land in the public interest.

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

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

I. Institutional Arrangements

17. The responsibility for implementing the Policy and Resettlement Plans are as follows:

(a) The National Project Office (NPO) under the MAF has the overall responsibility forimplementing the Policy and ensuring that all compensation, resettlement and rehabilitationactivities are satisfactorily completed before providing approval for award of civil workscontracts in the case of Partial Resettlement Plans or for submitting requests for noobjection from the World Bank for award of civil works contracts in the case of fullResettlement Action Plans.4

4 NPO will be assisted by World Bank staff in review and approval of Partial Resettlement Plans in thefirst year of the project after which it will take over the responsibility on its own.

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(b) It will facilitate the discussions between the province and the Governor's Officeregarding compensation for land acquired for the sub-projects.

(c) It will monitor the PPIO's work to ensure that the activitiesare carried out in asatisfactory manner.

(d) It will ensure that reports are submitted to the World Bank Office inVientiane on a regular basis.

(e) The Provincial Project implementation Office (PPIO) is responsible for obtaining allrelevant completed PAP inventory and socio-economic surveys for the infrastructure sub-project in its province. It will prepare the compensation package for PAPs according to theProject's Resettlement Policy and in cooperation with the appropriate provincial agenciesand the Governor's Office.

(f) It will send a copy of the completed forms (inventory, socio-economic survey andcompensation information) to DAFO in the district. It will ensure that the compensationin land or in cash is available for the DAFO to pay the PAPs. (Refer to paragraph 7c fortypes of compensation).

(g) It will monitor the proper implementation of DAFO regarding consultation withPAPs and the payment of compensation and other entitlements.

(h) It is also responsible for organizing the orientation and training on this policy for theconcemed DAFO staff and the Village Head so that they can carry out the ResettlementPlans, consultation with PAPs and implement the payment of compensation and otherrehabilitation entitlement to PAPs in a timely manner and as agreed.

(i) The DAFO, under the guidance of the PPIO is responsible for the following activitiesunder the Resettlement Plans: information dissemination about the Project and theResettlement Policy, consultation with PAPs, payment of compensation and otherrehabilitation entitlements to PAPs in a timely manner.

(j) It should report to the PPIO if there are any problems with the Resettlement Plans andimplementation..

J. Entitlement/Compensation Policy

18. PAPs will be entitled to the following types of compensation and rehabilitation measures:

(a) PAPs losing agricultural land and crops

i) Compensation of lost agricultural land will be through provision of "land for land"arrangements of equal productive capacity of the lost land and satisfactory to thePAPs.

ii) PAPs will be compensated for the loss of standing crops, fruits and trees at marketprice.

iii) PAPs whose land is temporarily taken by the works under the Project will becompensated for their loss of income, standing crops and for the cost of soil

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restoration and damaged infrastructure based on the temporarily impacted period.If this period is more than two years, the impact is to be permnanently considered.

(b) PAPs losing residential land and structures

i) The mechanism for compensating loss of residential land and structures will be:(1) the provision of replacement residential land of equivalent size, satisfactoryto the PAPs; and (2) cash compensation reflecting full replacement cost of thestructures, without deduction for depreciation or salvage materials.

ii) If the impact on residential land and/or structure is minor, cash compensation atreplacement cost acceptable to the PAP will be provided.5

iii) If the residential land and/or structure is partially affected by the Project and theremaining residential land is not sufficient to rebuilt the residential structure lost,then at the request of the PAP the entire residential land and structure will beacquired at full replacement cost, without depreciation. The threshold ofinsufficient remaining residential land is to be determined based on theconsultation with PAPs.

(c) PAPs losing commercial land, structures and business

i) The mechanism for compensating loss of business will be: (I) the provision ofalternative business or commercial site of equal size and accessibility to customers,satisfactory to the PAP; (2) cash compensation for lost business structure reflectingfull replacement cost of the structures, without depreciation; and (3) cashcompensation for the loss of income during the transition period.

ii) PAPs will also be provided compensation at full replacement cost, withoutdeduction for depreciation and salvage materials for any other fixed assets affectedin part or in total by the Project.

K. People's Participation

19. The PAPs will participate throughout the various stages of the planning andimplementation of the partial or full Resettlement Plans. For these purposes and prior to thepreparation of the Resettlement Plans, the PAP will be informed of the provisions of this Policy atpublic meetings held by the respective PPIO, DAFO and Village Committees. (See Annex 4 forSteps in Land/Property Acquisition and Compensation).

20. Each household PAP will be fully informed by the relevant DAFO and/or VillageCommittees of their entitlements/compensation and rehabilitation choices under the ResettlementPlans. After compensation, each PAP household will sign an acceptance letter

21. For the community driven development VIP sub-projects, the community proponentgroup will, if necessary, plan and decide among themselves how to deal with land and/or propertyacquisition based on the Policy. The Village Committee will be responsible for informing PAPsof the provisions of this Policy and to ensure that they are satisfied with the outcome.

Minor impact on residential land is defined as less than 20% of the total residential land holding andthe remaining area is not less than 200 m2.

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22. Provincial monitoring will obtain feedback from PAPs to see if there has beencompliance with Resettlement Policy. The World Bank team will also monitor these activities inits regular supervision missions during the period of project implementation; consultation withPAPs and beneficiaries will be conducted.

L. Implementation Arrangements

Implementation Schedule

23. A detailed implementation schedule of the various activities to be undertaken will beincluded in each Resettlement Plan.

24. 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 the World Bankcan be provided for award of civil works contract under each sub-project.

Complaints and Grievances

25. Complaints and grievances related to any aspect of the Resettlement Plans, including thedetermined quantities and price of the lost assets, will be handled as follows:

(a) As a first stage, PAPs will present their complaints and griwvances to the VillageCommittee, and the Committee will have to provide a written response to the PAP withinfifteen calendar days of receiving the complaint. If the PAP is not satisfied with thedecision of the village, the PAP may present the case to the DAFO within fifteen calendardays of receiving the written response from the Village Committee. The decision of theDistrict should be rendered within fifteen calendar days of receipt of the PAP's appeal andif the PAP is not satisfied with the decision of district, the PAP may present the case to thePPIO and the same procedure as at the district level will be applied.

(b) Another option, after the village and district appeals have been tried, is for the PAPto appeal to the representative of the National Assembly at the provincial level. Thisrepresentative acts like an ombudsperson and can initiate results quickly.

26. PAPs will be exempted from all taxes, administrative and legal fees.

Supervision, Monitoring and Evaluation

27. Implementation of the Resettlement Plans will be regularly supervised and monitored bythe respective DAFO and PPIO. The findings will be recorded in quarterly reports to befumished to NPO. The World Bank team will also monitor these activities in its regularsupervision missions during the period of project implementation.

M. Costs and Budget

28. Each Resettlement Plan will include detailed cost of compensation and otherrehabilitation entitlements and relocation of PAPs, if that be the case, with a breakdown byagricultural land, residential land, business land, houses, other structures, businesses, other assetsand cost for compensation or Resettlement Plan implementation. The cost estimates will makeadequate provision for contingencies.

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29. The Resettlement Plans will also include information on how the funds will flow and thecompensation schedule.

30. It will clearly state from where the sources of fund will come. For the infrastructurecomponents, compensation for productive, residential and commercial land will come from thevillage land through the approval of the Governor's Office. Cash compensation for structures,trees, crops, income loss and rehabilitation assistance will come from the provincial counterpartfund of the Project.

31. For VIP sub-projects, all compensation will be the responsibility of the proponentcommunity group and the village.

ANNEX

1. Steps in Land/Property Acquisition and Compensation

FORMS:I . Inventory (Census) of Project Affected People2. Socio-Economic Household Data of Project Affected People3. Compensation/Entitlements of Project Affected People

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ANNEX 1: STEPS IN LAND/PROPERTY ACQUISITION AND COMPENSATION

For Each Sub-Project Involving Land and Property Acquisition

Activity Responsible When

Orientation and training in the Compensation, Resettlement NPO and PPIO Introduction of Projectand Rehabilitation policy and procedures will be provided todistricts and communes

1. District works with villagers to select and prioritize development VDC, DDC and DAFO During planning periodactivities including infrastructure for construction and/orimprovement

2. VDC consults and discuss potential land and structure VDC During planning periodacquisition impact with affected head of household

3. Provincial and District engineers design infrastructure and Provincial and District During start offinalizes exact amount of land and structure to be affected Engineers implementation

4. Complete inventory and socio-economic survey of affected Provincial and District During start ofhouseholds Engineers and DAFO implementation

5. Hold another consultation with affected households and agrees DAFO and VDC During start ofon compensation and provide contact names and address for implementationgrievance/complaints

6. Complete entitlement form and set schedule and funding PPIO and DAFO. During start ofsource for payment implementation

7. PPIO submits all completed forms to NPO for review PPIO Three months beforeaward of contract forconstruction

8. NPO reviews and approves Partial Resettlement Plans and NPO Three months beforesubmits full Resettlement Action Plan to World Bank award of contract for

construction9. World Bank reviews and approves Full Resettlement Action World Bank Three months before

Plans award of contract forconstruction

10. PPIO pays cash compensation to affected households from PPIO One month beforeprovincial budget for affected structures, trees, crops and award of contract forrehabilitation assistance. construction for PartialVillage provides compensation for affected agricultural and and Full Resettlementroductive land from village land bank. Action Plans

11. World Bank provide 'no objection letter (NOL) for award of World Bankcontract for construction work in the case of sub-projects withfull RAP.

VDC - Village Development CommitteeDDC - District Development CommitteeDAFO - District Agriculture and Forestry OfficePPIO - Provincial Project Implementation OfficeNPO - National Project Office

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Form I

LAO PDR: AGRICULTURAL DEVELOPMENT PROJECT

Inventory of Project Affected People

Province: District: Village:

Survey Name of Head No. of Total Land- Land to be Land Use Loss as Loss ofNo. of Household Persons holding of Acquired Type * % of Total Loss of Assets Loss of Crops Other Other Losses

___________ in Hhold Hhold-M2 (M2) AssetsStructures Structures Area of Fruit trees Eg.,permanent temporary residential land lost Type Paddy area Other graveyards, Residence Business Income

(M2) (M2) lost and Number (M2) (Specify) wells, etc. (rented) Lost Loss(M2) (Type & No.)

*Land Types are as follows (change land type as appropriate for the Dstrict):1. Irrigated rice land 4. Forest land 7. Garden land2. Rainfed rice land 5. Wasteland 8.3. Dry land (foothills) for cultivation 6. Residential land 9.

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Form 2

LAO PDR: AGRICULTURAL DEVELOPMENT PROJECT

Socio-Economic Household Data of Project Affected People

Province: . District: Village:

Name of Household Member Sex A Ethn Edti Occupation and EmEstimatedSurvey Address of (please put name of Head of Household first) ge mc ucation Sources of mployment Total Income

No. Household up Income per Year(KIP)

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Form 3

LAO PDR: AGRICULTURAL DEVELOPMENT PROJECT

Entitlements of Project Affected People

Province: District: Village:

Name of Compensation for Land Compensation for Structures Compensation for Crops & Trees Compensation for Other Assets TotalSurvey Head of CmestofrLadand Losses

No. Household (e.g., graveyards, wells, (KIP)__________ businesses, etc.)

Quantity Unit Price Entitlement Quantity Unit Price Entitlement Quantity Unit Price Entitlement Quantity Unit Price Entitlement(M2) (KIP per (KIP) (M2) (KIP per (KIP) Unit (KIP) (KIP) Unit (KIP) (KIP)

M2) M2) .

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