Final Report – Assessment of Impacts due to

Land Subsidence – Corrective Action Plan

June 2018

Presented by JV of CDM Smith,

WSP Finland, Yooshin
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Area Affected by Land Subsidence

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 Basis to use VCM
• The design and implementation of VCM for the CMDCP was
conducted under the following letters/decisions issued by the MoT:
– Letter No. 7995/BGTVT-KHCN, 25 Sept. 2012 regarding approval of
research guideline on applying VCM method for SST works for CMDRCP;
– Letter No. 846/BGTVT-QLXD dated 25 January 2013 regarding applying
VCM method for SST works for the CMDRCP;
– Decision No. 384: Technical design "Temporary Regulations on Design
and Construction Technology VCM" and of TCVN 9842_201 on sealing
method.
– Decision No., 340/QĐ-BGTVT dated 04 February 2013 on final approval
decision of the technical design for packages CW2A, CW2B and CW2C
of CMDRCP regarding applying VCM method for SST works for the
CMDRCP;
– Decision No., 340/QĐ-BGTVT dated 04 February 2013 on final approval
decision of the technical design for packages CW2A, CW2B and CW2C.
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 Rationale for Compensation of Impacts
• Land subsidence is an unanticipated project impact caused
by VCM works carried out by the contractors and
supervised by the DDIS in accordance with the approved
design and MOT standards.
• Use of VCM has led to land subsidence and has affected
livelihoods and income of farmers.
• Land subsidence impacts triggers both environmental and
social ADB’s Safeguard Statement Policy (SPS 2009)
• Per loan agreement (Schedule 5, para 10(c)) the Borrower
is required to assess unanticipated impacts such as land
subsidence, with detailed description of the event and
preparation of a Corrective Action Plan (CAP).
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 Rationale to Use Project Loan
• There is a clear responsibility of the borrower to address
unexpected impacts such as land subsidence as per the loan
agreement and ADB SPS. Loss of income has to be addressed
and compensated through a Corrective Action Plan.
• The objective of the CAP is to restore income of people
affected through loss of soil productivity.
• CAP is assimilated as an Income Restoration Program (IRP)
and will be an Annex of the Resettlement Plan (RP)
• The CAP should be processed as the former IRP (IRP for
farmers affected through loss of productive land). This IRP
was funded under the loan and was endorsed and
implemented by Dong Thap PPC.

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 Rationale to Use Project Loan
• All safeguards costs related to the project (i.e. land
acquisition and IRP) in Dong Thap Province until now were
financed through the loan.
• The case of the HH affected under the reduced construction
yards (loss of income without land acquisition) constitutes a
precedent. It was funded under the loan, under the budget
for land acquisition & resettlement of Dong Thap Province
(see slide below).
• The loan appears to be the only available source of fund as
no counterpart fund is available. ADB agreed to use the loan;

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 Case of HH Affected by Reduction of
Construction Yards (CY)
• CY were included during the PPTA stage in the land acquisition
plan for CMDCP. Land acquisition for the CMDCP, including the CY,
was publicly announced on 28 September 2011. ADB/DFAT
requested to reduce CY in August 2012, MOT approved reduction
of on 5 November 2012.
• 47 HH, affected by the reduction of the CY, claimed assistance for
loss of production on their land (i.e. lack of care to fruit trees
resulted in loss of productivity, no maintenance for structures,
loss of shrimps, turtles, payment of deposits for HH who planned
to buy other land etc.…).
• An assessment report was prepared by DDIS. On 5 September
2016, CIPM submitted to MOT the proposed budget for approval
(556.000.500 VND equivalent to 25,000 USD).
• Following approval by MOT and Dong Thap PPC, the 47 HH were
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paid in April 2017.
 Types of Impacts due to Land Subsidence
• Short-term impacts (i.e. temporary losses) and ii) long-
term impacts.
– Short-term impacts refer to the loss of income due
to loss of crops as some areas couldn’t be cultivated
due to land subsidence (land subsidence occurred in
early 2016 and has affected 7 crops)
– Long term impacts are the impacts due to the long-
term loss of productivity of land.

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 Compensation for Crops (short-term impacts)
• Total amount of compensation for crops

Period Total Amount of Covered by the Amount

Compensation insurance borrowed to be
company paid back
Up to 2017
2,383,700,278 1,636,557,230 747,143,048
Winter Spring
1,609,390,465 - 1,609,390,465
2018
Summer
Autumn 2018 1,609,390,465 - 1,609,390,465

Total VND 5,602,481,207 1,636,557,230 3,965,923,977

Total USD 245,993 71,858 174,135 9
 Compensation for Crops (short-term impacts)

• Remaining compensation for crops to be paid to farmers.

Crops Total Amount Remaining

Compensation already paid amount be
to farmers paid to farmers
2017-2018
crops 3,096,594,778 896,495,965
3,993,090,743
Summer -
Autumn 1,609,390,465 0 1,609,390,465
2018 crop
Total 5,602,481,207 3,096,594,778 2,505,886,429
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Compensation for Land (long-term impacts)
• Land survey conducted in February and March 2018 with the
participation of farmers;
• Identification of all plots affected (area, owner);
• Identification of average level of all plots;
• Only the area with depth of more than 10 cm was surveyed

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 Compensation for Land (long-term impacts)
• Final results from the land survey

Land Survey
(February -March 2018)
Affected Area by Land Affected Affected
Subsidence (m2) plots HH
Binh Thanh 58,059 33 21
Binh Thanh Trung 292,026 166 102
My An Hung B 317,753 184 124
Total 667,838 383 247

Binh Thanh Binh Thanh Trung My An Hung B

Average depth 32 cm 43 cm 35 cm
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Approach Taken for Compensation for Land

• The best option to restore income is to restore affected land

to pre-impact condition by filling land affected by land
subsidence with topsoil.
• However, due to the volume of topsoil necessary (256,565
m3), this option is not technically feasible.
• It was agreed with all stakeholders during a meeting held on
21 March, that compensation shall be established based on
the equivalent costs of land restoration to pre-impact
condition;

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Determination of Volume of Topsoil Needed to
Restore Land at Pre-Project Level

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 Determination of Costs for Topsoil
Basis to Determine Costs of Topsoil
No. Agencies/ Cost of topsoil Cost of Cost of Cost of
Market survey (VND/ m3) transportation levelling amendment
(VND/ m3/ 2 (VND/ m3) (VND/ m2)
km)
1 Rates by 59,000 15.000
DARD/DOC (Letter No. 455/SXD-QLXD (DARD No. 580/
dated 23 April 2018) SNN-KHTC)
2 Survey by DPC 60,000 – 80,000
Lap Vo Letter 60 /UBND-
TH dated
27/04/2018
Proposed Costs of Topsoil
Volume of topsoil m3 Area Affected (m2)
Cost of topsoil Cost of transportation Total Costs Cost for topsoil
(VND/ m3) and levelling (VND/ m3) (VND/m3) Amendment
(VND/m2)
60,000 59,000 119,000 15,000 15
Example of Determination of Compensation for
Topsoil

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 Proposed Compensation for Land

Affected Affected Proposed Compensation

area Volume
Commune (m2) (m3)
VND USD
Bình Thành 58,059 18,618.6 3,086,497,685 135,521
Bình Thạnh
126,978.6 855,800
Trung 292,026 19,490,833,869
Mỹ An Hưng B 317,753 110,967.90 17,971,478,373 789,088
Sub-Total 667,838 256,565.10 40,548,809,928 1,780,409

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Workshops with Affected Farmers
• Three workshops were held in each affected commune, with
all farmers identified in the land survey on 21, 24 & 26 May;
• Before the workshops, each HH received an invitation letter
and a form with information on each of their affected plots
(i.e. area affected, volume of topsoil needed, location etc.).
• Among the 247 HH, the vast majority (i.e. 234/247) agreed
with the proposed measurement during the workshop and
signed their individual forms;
• 13 HH asked for re-measurement; new measurement was
conducted and on 12 June 2018 all HH agreed with the
proposed measurement and signed their individual forms for
their plot;
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 Corrective Action Plan - Steps
• Approval process: Approval of the report on assessment of
impacts due to land subsidence and of Corrective Action Plan.

Actions By Whom By When

- Report to be submitted by - CIPM - Mid-June
CIPM to ADB/DFAT/MOT for 2018
approval;
- Report to be endorsed by Dong - Dong Thap - Early July
Thap PPC PPC 2018
- Dong Thap PPC to delegate - Dong Thap - Early July
responsibility of PPC 2018
implementation to Lap Vo
District authorities if necessary
- Approval of Report and CAP by - ADB/DFAT/ - Mid July 2018
ADB/DFAT/MOT MOT 19
 Corrective Action Plan - Steps
• Confirmation of the Source of Funds: Confirmation to use the
project loan for short term and long-term impacts due to land
subsidence.

Actions By Whom By When

- CIPM to request authorization from - CIPM - June
MOT and PM to use the project loan 2018
for compensation due to impacts on
land subsidence
- MOT/PM to approve use of project - MOT/P - Mid July
loan M 2018
- MOT to request ADB to use loan fund - MOT - End July
2018
- ADB to accept request from MOT - ADB - End July
2018 20
 Corrective Action Plan - Steps
• Final compensation for short and long-term impacts.

Actions By Whom By When

- MOT/ADB to approve - MOT/ADB - July 2018
compensation costs for short
term and long-term impacts
- MOT to request ADB for project - MOT - July 2018
funds for compensation
- ADB to disburse funds to CIPM - ADB - July 2018
- Final compensation to affected - CIPM/Dong - August
farmers for both short term and Thap PPC. Lap 2018
long-term impacts in each Vo District PC
affected commune;
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 Corrective Action Plan - Budget

Amount
VND USD
1 COMPENSATION FOR CROPS
1.1 Remaining payment up to 2017 747,143,048 32,805
Payment for Winter Spring and
1.2 3,218,780,929 141,330
Summer Autumn 2018
1.3 Sub-Total 1.1. + 1.2 3,965,923,977 174,135
2 COMPENSATION FOR LAND 40,548,809,928 1,780,409
3 Sub-Total Crops and Land 44,514,733,904 1,954,544
4 Contingencies (10%) 4,451,473,390 195,454
5 TOTAL BUDGET 48,966,207,295 2,149,998

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 Corrective Action Plan - Schedule

June July August September October

11 18 25 2 9 16 23 30 6 13 20 27 3 10 17 24 1 8 15 22 29
1 Submission of Assesment Report & CAP to ADB/DFAT & MOT
2 Revision of report following ADB/DFAT & MOT comments
3 Approval of Assessment Report & CAP by ADB/MOT
4 Assessment Report & CAP to be endorsed by Dong Thap PPC
5 Dong Thap PPC to delegate Responsibility to Lap Vo DPC
6 Request approval from MOT/PM to use the loan by CIPM
7 Approval by MOT/PM to use the loan
8 MOT to request ADB to use the loan
9 ADB accepts request from MOT
10 Disbursment from ADB to CIPM
11 Final payment to affected farmers
12 Support to farmers who want to change of crop
13 Monitoring and Follow-up
14 Reporting
15 Liquidation

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