Viet Nam: Implementation and Monitoring of Song Bung 4 Hydropower Project Resettlement and Ethnic Minority Development Plan

Sovereign Project | 45108-001 Status: Active

Summary

On 26 June 2008, the Asian Development Bank (ADB) approved Loan 2429-VIE: Song Bung 4 (SB 4) Hydropower Project for $196 million, which became effective on 16 January 2009. The Project consists of the construction of a 156-megawatt hydropower plant on the Song Bung in the Vu Gia-Thu Bon river basin and a 110-meter (m)-high roller compacted concrete dam on the same river with a crest length of 367 m. The Project is located in Nam Giang District of Quang Nam Province in Central Viet Nam, which is predominantly inhabited by indigenous people belonging to the Co Tu ethnic minority.

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Project Name Implementation and Monitoring of Song Bung 4 Hydropower Project Resettlement and Ethnic Minority Development Plan
Project Number 45108-001
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7861-VIE: Implementation and Monitoring of Song Bung 4 Hydropower Project Resettlement and Ethnic Minority Development Plan
Technical Assistance Special Fund US$ 225,000.00
TA 7861-VIE: Implementation and Monitoring of Song Bung 4 Hydropower Project Resettlement and Ethnic Minority Development Plan (Supplementary)
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Energy - Large hydropower generation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

On 26 June 2008, the Asian Development Bank (ADB) approved Loan 2429-VIE: Song Bung 4 (SB 4) Hydropower Project for $196 million, which became effective on 16 January 2009. The Project consists of the construction of a 156-megawatt hydropower plant on the Song Bung in the Vu Gia-Thu Bon river basin and a 110-meter (m)-high roller compacted concrete dam on the same river with a crest length of 367 m. The Project is located in Nam Giang District of Quang Nam Province in Central Viet Nam, which is predominantly inhabited by indigenous people belonging to the Co Tu ethnic minority.

The SB 4 Hydropower Project will result in the relocation of more than 1,200 Co Tu ethnic minority people in Zuoih commune in Nam Giang District. The resettlement cost is funded by the Electricity of Viet Nam (EVN). The Project is also supported by a complementary grant of $2 million financed by the Japan Fund for Poverty Reduction (JFPR) under Grant 9120: Livelihood Improvement of Vulnerable Ethnic Minority Communities Affected by the SB 4 Hydropower Project in Quang Nam Province. The JFPR project was approved by ADB on 26 June 2008 and became effective on 10 November 2008.

The SB 4 Hydropower Project has several negative social impacts on the people who live in the reservoir, downstream, and upstream areas. The impacts include the (i) relocation of more than 1,200 people living in the reservoir area, which represents more than 97% of the people in the area, and 27,340 people from 89 villages along the Bung River downstream and upstream of the dam; and (ii) acquisition of land for more than 500 ethnic minority people for the development of resettlement sites and access roads to resettlement sites. In view of these, SB 4 Hydropower Project is considered a high-risk project.

Project Rationale and Linkage to Country/Regional Strategy

The Project involves the development of a 156 megawatt (MW) hydropower plant with a 114 meter (m) dam which, when impounded, will create a reservoir with surface area of 15.8 square kilometers (km2). The reservoir requires the resettlement of 253 households in four villages, mostly belonging to the Co Tu ethnic minority group. It will also inundate 129 hectares (ha) of the Song Thanh Nature Reserve. Since the Project is the first and only large hydropower project financed by ADB in the Socialist Republic of Viet Nam (Viet Nam), ADB had intensively supported the resettlement process and livelihood development programs of the affected persons (APs) through a grant of $2 million under JFPR 9120-VIE: Livelihood Improvement of Vulnerable Ethnic Minority Communities Affected by the Song Bung 4 Hydropower Project in Quang Nam Province (JFPR). However, the JFPR, after exhausting its funds, had to close on 28 February 2013 before entirely completing the scheduled livelihood development activities due to the delayed relocation of the APs ascribing to the delay in the main construction works of the Project. This resulted in the livelihood programs on agriculture, livestock, fishery and agro-forestry to be terminated prematurely before the APs of three out of four villages relocated to the resettlement sites even though the JFPR was envisioned to have at least two years of activities after physical relocation.

The Government of the Socialist Republic of Viet Nam (the Government) and Vietnam Electricity (EVN) have requested ADB to continue its assistance to ensure that the APs' livelihoods are sustainable and that the environment is managed appropriately after impounding of the dam scheduled in August 2014. ADB agreed to this request based on the understanding that (i) assistance is required for the APs given that they have only recently started their new lives in the resettlement sites; (ii) the APs need to develop financial literacy to ensure prudent use of their compensation money; and (iii) downstream and upstream impacts of the reservoir and its operation on the APs and the environment should be monitored closely after impounding of the reservoir and adequately reported.

The revised impact is that the livelihoods of the APs are sustainable. Average income and subsistence production of APs are targeted to be restored to at least pre-project levels by December 2018. The annual surveys conducted by the Ministry of Labor Invalids and Social Affairs will be the data sources.

The revised outcome is that involuntary resettlement and environmental management plans are successfully implemented. The performance indicator is the appropriate implementation of REMDP and Environmental Management Plan in accordance with both government and ADB provisions by November 2016.

Impact Livelihoods of the APs are sustainable

Project Outcome

Description of Outcome Involuntary resettlement and environmental management plans successfully implemented.
Progress Toward Outcome

The loan has closed in December 2015. ADB review missions continue to ensure that resettlement outcomes are being closely monitored.

Continuous assessment through financial literacy consultants, community mobilizer and impact assessment experts and the SB4 HPMB are being done.

Implementation Progress
Description of Project Outputs

APs adapted to new lifestyle in the resettlement sites.

APs' access to financial services and resources secured.

Awareness of social and resettlement impacts widely disseminated.

Project and associated interventions assessed independently.

Status of Implementation Progress (Outputs, Activities, and Issues) The APs livelihood sources have been reduced - fishing, gold panning, and animal hunting. An increased in income from better access to markets and forest protection has been noted. A financial literacy program has been offered under the TA and APs' knowledge and skills were enhanced as shown by increase in awareness on savings, spending and livelihood investment. The long term impacts of the resettlement remain unknown, especially the introduction of agricultural methods and livelihoods, combined with large injection of cash into these communities. An impact assessment will be done by the end of 2016 to assess changes in livelihoods.
Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were held with the affected communities, government officials, and commune officials to discuss the Project, resettlement activities, impact of the Project, mitigating measures, and livelihood improvements. Consultations were held with the affected communities to discuss reservoir inundation impacts, proposed resettlement sites, and their entitlements, downstream and upstream riverine impacts and proposed entitlements, project construction, land acquisition, and potential health impacts. Further consultation will be held during the implementation phase.
During Project Implementation ADB review missions ensure that consultations are held with the affected communities. Given the expansion of the S-CDTA, financial literacy has been included in the project's scope to ensure prudent use of the compensation money. Continuous assessments for downstream and upstream impacts of the project are being discussed also with the affected communities. An initial social impact assessment has been prepared to evaluate the involuntary resettlement impacts caused by the Project.

Business Opportunities

Consulting Services A change in S-CDTA scope was necessary to address additional activities for the project. These additional activities required additional fielding of individual consultants. Consultants were selected in accordance with the ADB's Guidelines on the Use of Consultants by the Asian Development Bank and Its Borrowers (March 2013, amended from time to time). The S- CDTA executing agency is ADB, with the SEEN as the implementing agency. Disbursements under the S-CDTA done in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time).
Procurement No procurement envisaged.

Responsible Staff

Responsible ADB Officer Michiko Suga
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
Last PDS Update 18 Mar 2016

TA 7861-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Sep 2011 - 09 Sep 2011 31 Dec 2012 31 May 2017 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
725,000.00 0.00 0.00 0.00 0.00 0.00 725,000.00 09 Sep 2011 547,321.23

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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