Nam Theun 2 Trip Report and Project Update - BankTrack

International Rivers NetworkLivelihood restoration failuresNTPC and the GoL are failing to meet commitmentsmade in the Concession Agreement and the 2005 NT2Social Development Plan concerning replacement landand irrigation for Project Lands villagers. No alternativestrategies to restore the livelihoods of significantlyaffected villagers have been disclosed. Once again, amajor mid-stream change to project plans has leftaffected people in the lurch.According to the Concession Agreement, ProjectLands villagers who lose 10% or more of their productiveland assets are entitled to replacement land of thesame type and of at least equal productivity unless noreplacement land is available. The World Bank’s involuntaryresettlement policy requires:Preference should be given to land-based resettlementstrategies for displaced persons whose livelihoods areland-based…. If land is not the preferred option of thedisplaced person… or sufficient land is not available ata reasonable price, non-land-based options builtaround opportunities for employment or self-employmentshould be provided in addition to cash compensationfor land and other assets lost. The lack of adequateland must be demonstrated and documented to the satisfactionof the Bank (World Bank InvoluntaryResettlement Policy, OP 4.12).NTPC said that “livelihood restoration is in progress,but it cannot always be land-for-land.” The WorldBank said that many people preferred cash and hesitatedwith land replacement. It is not clear if any replacementland has been provided to villagers who desire it,or what alternative livelihood restoration measures arebeing implemented in other cases.The Panel of Experts reported that there was a “dearthof land and water available for conversion to [paddyfield] to replace the considerable acreage absorbed bythe building of the large downstream channel in particular”(PoE, 11th Report, p. 23). Land-for-landreplacement is critical, especially given the importanceof paddy to villagers’ livelihoods. The GoL and NTPCshould document and publicly report any cases inProject Lands CompensationEntitlementsAccording to the Concession Agreement,Project Lands affected people are entitled tocash or replacement land for loss of residentialor business land, compensation for temporaryimpacts during construction, compensation forfixed structures, fruit trees, timber trees, fishponds, garden and field crops, common propertystructures (electricity, roads, irrigationchannels, water supply, school, etc.) and commonproperty resources (loss of forest productsand firewood gathering areas and loss of fishand aquatic products). For permanent losses ofland that constitute less than 10% of a person’sproductive assets, affected people areentitled to cash compensation for the marketvalue of the land, the cash equivalent of sevenyears’ gross production or the actual replacementcost of the land.For permanent losses of agricultural land, significantlyaffected farmers (those who lose10% or more of their productive land assets)are entitled to land of the same type and productivityof the land that was lost, as well asproduction assistance for at least two years. Ifno replacement land is available, NTPC mustprovide assistance to develop alternative nonlandbased livelihood activities that generateat least as much income. If villagers prefer alump sum cash payout, the amount is based onthe market value of the land, the cash equivalentof seven years’ gross production or theactual replacement cost of the land.Significantly affected villagers are also entitledto disturbance allowance, transitional foodassistance and transitional income assistance.21