Nam Theun 2 Trip Report and Project Update - BankTrack

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Nam Theun 2 Trip Report and Project Update12.3.1 The RMU shall coordinate the provision of income supportincorporating the following key principles:• during the Resettlement Implementation Period, the Companywill provide to the RMU (for distribution in accordance withregulations made under the NT2 Resettlement Policy) rice andprotein supplements for vulnerable households through therice bank modality until they attain and sustain theHousehold Income Target.• Nong Boua villagers are no longer receiving rice supportsand have reported selling buffalo and otherassets to buy rice. NTPC and the GoL plan to endprotein support 37 weeks after relocation.13.1 Preparation of detailed resettlement plans for Project Lands(c) The Company’s exact requirements for Project Lands willbe identified at or around the time of Financial Close afterwhich time the Company will finalise the compensation agreementsfor Project Affected Persons (on a household by householdbasis). …(d) The Company shall ensure that compensation in the form ofcash and replacement housing applicable to each household is providedto each affected household and that compensation paymentand relocation is satisfactorily completed prior to the handoverof land to the Company in accordance with the updated resettlementplans.(e) The Company shall ensure that compensation in the form oflivelihood restoration is provided to eligible Project AffectedPersons prior to hand over of land where reasonably possible.(g) The Company agrees that it will prepare the updated resettlementplans in accordance with applicable World Bank andAsian Development Bank Safeguard Policies and in consultationwith GOL and the Project Affected Persons and/or Projectaffected villages in question.• Project Lands compensation agreements were notdeveloped until the year after Financial Close.Compensation payments and livelihood restorationwere not provided prior to the handover of land.World Bank and ADB Safeguard Policies have notbeen complied with (see next section).Schedule 4, Part 29 Detailed description of Environmental Measures1 Water quality monitoring and maintenance of beneficial uses(f )… Water in the Downstream Channel must at least be suitablefor irrigation purposes.3 Water quality improvements through reduction of biomass inReservoir Area by salvage logging during construction(a) The Company shall ensure that a survey of present biomass inthe inundation area based on a satellite image of the NakaiPlateau shall be completed by suitably competent and expert personsprior to the Construction Phase.Such survey will update thebiomass estimate in the area to be inundated. The results shall beused to propose means for maximising removal of biomass inhigh biomass areas of the Nakai Reservoir. The priority shallbe to clear the vegetation in areas which will be permanentlyflooded. The vegetation along the Nam Theun will be removedat the last moment in order to reduce the stress to the aquaticcommunity.• There are no plans to maximize biomass removal inhigh biomass areas of the reservoir and predictionsare that water in the downstream channel will not besuitable for irrigation purposes.19. Wildlife program Element E—Adaptive managementprogramThe Company and the GOL will develop and implement anadaptive management program for the wildlife program byestablishing a committee, comprising suitably competent andexpert persons, to oversee the implementation and review theeffectiveness of the wildlife program.The adaptive management committee will meet regularly toreview the findings of the wildlife studies and the experimentalapproach to wildlife management and to make recommendationsfor improving the effectiveness of the wildlife program.• No committee has been established and none of therequired wildlife plans have been finalized ordisclosed.3.1 Mitigation of Project Impacts by Head ConstructionContractor during the Construction Phase(a) Without limiting clause 9, the Company agrees that, by theHead Construction Contract it will ensure that theHCCEMMP:(ii) adequately addresses each of the following activities in orderto avoid, alleviate, mitigate or remedy or otherwise address theProject Impacts within the Construction Areas:(A) meeting effluent standards and water quality requirementsfor discharges into surface waters and groundwater;(B) controlling drainage, erosion and sedimentation;(E) landscaping, rehabilitating and revegetating theConstruction Areas;34
International Rivers Network(F) managing on-site waste;(G) managing use and storage of chemicals, preventing anddeveloping emergency plans for chemical pollution incidents;(H) controlling noise, emissions and dust;28 Road construction and operationThe Monitoring Program shall be such as will enable theCompany to monitor and ensure compliance by the HCC withthe provisions in the HCCEMMP relating to road design, constructionstandards and applicable mitigation measures prior toand during the construction of those roads by the HCC. In thatregard the HCCEMMP shall provide for:(a) the alignment of roads to be designed to:(i) avoid large trees to the greatest extent reasonably practicableand otherwise so as to minimise damage to vegetation;(b) construction management to ensure that disturbance is limitedto the road easement;(c) the restriction of construction to the dry season when possible;(d) protection of susceptible soil surfaces with seeding and/ormulch;(e) protection of drainage channels with berms or fabric barriers;(f ) construction of sedimentation ponds and implementation ofother sediment control measures as necessary;(p) road quality and stability standards to be implemented;(q) erosion mitigation measures to be implemented;• The Lender’s Engineer and the Panel of Experts haveraised concerns about the Head ConstructionContractor and the subcontractors’ impacts in theseareas.World Bank and Asian Development BankPoliciesInvoluntary Resettlement PolicyWorld Bank OP 4.12: “Displaced persons should be meaningfullyconsulted and should have opportunities to participate in planningand implementing resettlement programs.” The policy coversthose people who suffer “direct economic and social impacts”including “loss of income sources or means of livelihood, whetheror not the affected persons must move to another location”.ADB OM Secton F2/BP: “Affected people are to be consulted oncompensation and/or resettlement options, including relocationsites, and socioeconomic rehabilitation. Pertinent resettlementinformation is to be disclosed to the affected people at key points,and specific opportunities provided for them to participate inchoosing, planning, and implementation options. Grievanceredress mechanisms for affected people are to be established. Whereadversely affected people are particularly vulnerable groups, resettlementplanning decisions will be preceded by a social preparationphase to enhance their participation in negotiation, planning,and implementation.”• The failure to ensure a meaningful consultationprocess has contributed to the confusion with theProject Lands compensation and livelihood restorationprocess.World Bank OP 4.12 requires that “taking of land and relatedassets may only take place after compensation has been paid”.• Compensation was not paid to Project Lands villagersbefore their lands and assets were taken.World Bank OP 4.12: “Preference should be given to land-basedresettlement strategies for displaced persons whose livelihoods areland-based…. If land is not the preferred option of the displacedpersons, the provision of land would adversely affect the sustainabilityof a park or protected area, or sufficient land is not availableat a reasonable price, non-land-based options built aroundopportunities for employment or self-employment should be providedin addition to cash compensation for land and other assetslost. The lack of adequate land must be demonstrated and documentedto the satisfaction of the Bank.”• It does not seem that sufficient replacement land hasbeen found for Project Lands villagers.World Bank OP 4.12: As a condition of appraisal of projectsinvolving resettlement, the borrower provides the Bank with therelevant draft resettlement instrument which conforms to thispolicy, and makes it available at a place accessible to displacedpersons and local NGOs, in a form, manner, and language thatare understandable to them. Once the Bank accepts this instrumentas providing an adequate basis for project appraisal, theBank makes it available to the public through its InfoShop. Afterthe Bank has approved the final resettlement instrument, theBank and the borrower disclose it again in the same manner.ADB OM Section F2/BP: “A satisfactory resettlementplan/framework must be submitted by the EA or the projectsponsors to ADB, preferably together with the project feasibilitystudy, but in any case, before project appraisal.”35
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