GOL Resettlement Principles
The NT2 Resettlement Priciples
Article 1: Objectives of the Resettlement Principles
This policy outlines the basic principles and measures governing the resettlement: provision of agricultural and forestry production areas and compensation to the population of the Nam Theun 2 Project zones. with the view of upgrading and esuring sustainable livelihoods
It provides that the population participates in the consultation, planning and design process of their new settlement and production areas.
It provides for the application of special measures as required towards ethnic minorities and vulnerable persons to assist them to take care of their needs and foster self- reliance.
It provides for the construction of infrastructure in new settlements areas in accordance with designs approved by the Resettlement Committee in the best interests of the population in and around the resettlement areas.
The population to be resettled should materially improve its standard of living after relocating: individual household incomes should be above the national poverty line within four years after physical relocation and should be supported in the interim period.
The policy provides for replacement land being available to all those interested: cash compensation would only be considered for those with specific plans to permanently move out of the district.
The resettlement and rehabilitation plans will be conceived and executed as specific development plans.
Article 2: Policy Areas
The areas of this policy are those where the population is directly and indirectly impacted by the Nam Theun 2 Project, including:
The dam and reservoir area covers the territory of 15 villages in Nakai District.
The powerhouse. weir and water basin, outflow channel from the powerhouse and first portion of the high voltage transmission line.
Outflow canal to the Xe Bangfai river and the middle portion of the high voltage transmission line.
The 1 15kV transmission line. from Mahaxai to Thakhek.
Nongbok and Xe Bangfai Districts:
Xe Bangfai downstream
May affeted by releasing water from the reservoir ad to Xe Bangfai downstream and Remaining portion of the high voltage transmission line.
Khanthanbourv District : and Remaining portion of the high voltage transmission line.
The resettlement policy is directly linked to the above Project components and operation of the powerhouse. dam and reservoir.
Article 3: Selection of Resettlement Areas
Based on the preferences of the reservoir population and in accordance to the Decree 193/PM of December 2000, three areas have been selected for resettlement
Area I: Near Nakai town (Khammouane Province) covering an approximate area of 1.600 hectares.
Area 2: On the west of Ban Done and Ban Khon Khene. Nakai District (Khammouane Province). covering an approximate area of 10.300 hectares.
Area 3: On the west of Ban Nakai Tay and Ban Nakai Neua (Khammouane Province). covering an approximate area of 10.900 hectares.
Article 4: Compensation Policy
Compensation based on the principle of replacement cost will be provided for agricultural lands, gardens. building land. fruit trees. houses. schools. hospitals. dispensaries. temples. cemeteries. markets. buildings and any other assets and activities that will be affected.
The Project will provide housing and agricultural-forestry production land for each
household in the reservoir area at the time of the population and assets survey. For any household not wishing to receive any such land or housing. the Project will pay cash compensation at replacement cost based on the local market value prevailing at the time.
Fruit trees shall be compensated according to the agreement between the concerned parties and/or locally prevailing market prices.
Schools. hospitals. dispensaries. markets. temples. clubs. cemeteries. roads and other constructions owned by the State and the village will be re-built by the Project or will be otherwise compensated for at their replacement cost.
The dismantling of old houses and construction cost of new replacement houses will be. Jointly with the owners. determined by the Project and will be compensated. Transportation to the resettlement area (including wood prepared by the population) and labor and equipment provided by each family will be compensated. Each house may be designed by the population itself according to their preference. Moving of household goods including livestock will be arranged at no cost to the household.
Villagers resettling outside the resettlement areas (to other localities) will receive full compensation from the Project in one single payment for agricultural land. gardens. fruit trees. houses. building land and other losses and will be provided transportation to their destination. Any self-resettlement proposals must be reviewed for feasibility and approved by the Resettlement Committee before agreement to cash payment.
Food security will be provided to households until the Policy_ income target has been met. according to the Regulations.
All persons that sustain a loss under the Pro , ject will be entitled to adequate and prompt compensation or replacement of assets lost.
Under this policy, regulations will be made that classify those who are entitled to compensation and the level of compensation entitlement.
Households in the Project's Reservoir Area as of October-1998 will be entitled to compensation and have been registered, including those household of national growth and household of any government employees who have been assigned to the area since the registration process
Article 5: Other Provisions
The resettlement transition period (from relocation to self-sufficiency) will be minimized and adequate social. economic and environmental support will be provided during this period.
Those to be resettled will. as a matter of their preference. be relocated on the sites situated on the Nakai Plateau in areas as mentioned in Article 3. Those few households wishing to relocate off the Nakai Plateau will have that option and will be paid adequate compensation.
Villages will be resettled as villages and according to their traditional groupings, where two or more villages are to be combined in a new location, agreement of all concerned villages will be obtained. Living standard in the new villages must be better than before.
New- villages will be provided with appropriate community infrastructure as specified in the Resettlement Action Plan.
Insofar as changes in household economic activities are proposed. the replacement opportunities will recognize the ability and interest of the persons affected; new activities will be introduced on a sound economic basis. with risks identified and understood.
All compensation. relocation and rehabilitation costs will be borne by the Project. with funds disbursed through an appropriate institutional structure.
All those affected b\ the Project will have the same basic rights. although entitlements may vary.
Proof of residency or traditional use from the Village administration is required to establish the right to compensation.
The allocation of farm/house lots will recognize family composition. households with large numbers of present or future labour-force members will be considered for allocation of plots that can accommodate larger or expanding households.
The socio-cultural composition of the affected villages will be recognized in the resettlement plans and their implementation. Special measures will be planned for vulnerable groups.
All affected persons will have effective access to grievance procedures that would deal with problems that may emerge at the household or village level.
The program of resettlement will be linked to the Project construction program; reservoir impoundment will not proceed until all affected persons have been relocated in accordance with the approved resettlement schedule.
Any host people affected by the resettlement program will be compensated according to the degree of the impact.
Article 6: Implementation
The NT2 Resettlement Committee will be responsible to carry out the effective implementation of the Resettlement Action Plan and for the coordination of the organizations involved: the Resettlement Committee will instruct the Resettlement Management Unit (RMU).
The NT2 Resettlement Committee and the Resettlement Management Unit (RMU) will prepare the Regulations under this policy.
The NT2 Resettlement Policy is to be recognized and supported by Ministries, Organizations equivalent to the Ministries. Organizations and local administrative Authorities for effective implementation.
Article 7: Validity
This policy replaces the NT2 Resettlement Policy No. 023/SPC, dated 5 February 1998 and will be come effective on the date of signature entered upon.
Reference to the Lao PDR Law No. 01/95, dated 08 March 1995:
Reference to the Forestry Law No. 01 /96, dated 11 October 1996:
Reference to the Land Law No. 01 /97, dated 12 April 1997:
Reference to the Decree No. 193/PM on the establishment of the Nakai-Nam Theun NBCA. Corridor Areas, NT2 Project Reservoir Area, and Resettlement and Forest Area for people affected by the Project. dated 29 December 2000.
Reference to the Decree No. 37/PM on the approval of the allocation of the Resettlement and Forest Area to people and village organizations affected by the Nam Theun 2 Project for carrying out forestry business activities, dated 12 April 2002.
Reference to the proposals of the Resettlement Committee No. 098 /G.km, dated 1 Jul 2002.
Deputy Prime Minister
President of Committee for Planning and Cooperation