Nam Theun 2 Trip Report and Project Update - BankTrack

International Rivers NetworkAppendix 2: VIOLATIONS OF NT2 LEGAL FRAMEWORKThe following section highlights key violations of theConcession Agreement and of World Bank and ADB policies,but does not provide a comprehensive analysis of allcontract breaches.• Three of the eight resettled villages on the Plateauthat IRN visited complained of water supplyshortages.Concession AgreementSchedule 4, Part 17.8.2 The Company must ensure that the following requirementsare satisfied prior to confirmation of the sites in paragraph 7.8.1:• all villagers have visited the site and been provided with technicalinformation (in an easily understood form);• all villagers have agreed on the site;9.1.4 The GOL and the Company shall ensure that at all timesduring the Resettlement Implementation Period, appropriatesteps are taken to mitigate against the additional risks to ethnicminority groups and vulnerable households and will ensure thatplans addressing the issue of culturally sensitive development ofProject Affected People (“Ethnic Minorities Development Plans”)are implemented, having due regard to the SDP. This willinclude the following:• relocation of Vietic or other vulnerable groups into separateadministrative village units with clearly demarked boundariesand rights to resources,…;• Vietic villagers in Sop Hia have not all agreed tomove with other villagers to Resettlement Area 7.8.5.5 Irrigation and household water supply and distribution toeach house and farm lotThe Company shall provide good quality year-round water supplyto Resettlers for household use (in accordance with nationalstandards) for the duration of the Resettlement ImplementationPeriod from, as close as reasonably possible to each of their houses(at a minimum of 1 outlet per five houses….)8.7.1 Relocation of Resettlers shall not be commenced until afterthe Resettler housing and essential community infrastructure andservices are complete (including, without limitation, the villageaccess road, allocated farm plots, schools, housing and clinics andavailability of water for Resettlers households and as far aspossible, water for gardening).9.1.2 The GOL will take appropriate steps to ensure that:• the forest resources in the Resettlement Area are for the exclusiveuse and benefit of the plateau Resettlers for seventy (70)years from the establishment of the NPVFA; and9.6.1 The RO, with assistance from the RMU will procure thata plan for sustainable forestry …will be developed immediatelyafter the Resettlers have been relocated and land allocation hasbeen completed. The plan will be developed for the purpose ofproviding employment and other economic returns to theResettlers and will be based on the principle of community ownershipof the forest resource, allowing the Resettlers to participatedirectly in the financial benefits from sustainable commerciallogging of these forests.9.6.7 The RO, with assistance from the RMU shall ensure that:• the stated components of the Community Forestry Program(institutional development, natural resource management,forestry business and enterprise development and forestimprovement with local species) are implemented in a mannerwhich shall achieve the objectives referred to in 9.6.1above; and• appropriate steps are taken to mitigate against the risks of theCommunity Forestry Program.10.6.1 The GOL will hand over the community forest to theNakai Forest Association after theAssociation has been established, and the Forest ManagementPlan has been prepared by theCompany and approved by the GOL and the forest managementcontract has been signed asprovided in clause 9.7.• Forest resources in the resettlement area have reportedlynot been transferred for the VFA’s exclusive useand benefit.33