SFG1531 Socialist Republic of Vietnam Ministry of Industry and Trade VIETNAM ENERGY EFFICIENCY For INDUSTRIAL ENTERPRISES PROJECT (VEEIEs) Ethnic Minority Planning Framework (Final) Hanoi, October of 2015 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) TABLE OF CONTENTS ACRONYMS AND ABBREVIATION.............................................................................2 SECTION 1. INTRODUCTION ...................................................................................... 3 1.1. PROJECT DESCRIPTION .............................................................................................. 3 1.2. ETHNIC MINORITY PLANNING FRAMEWORK (EMPF) ................................................. 5 1.3 ETHNIC MINORITIES IN VIETNAM ...............................................................................6 SECTION 2. POTENTIAL IMPACTS OF THE PROJECT ..........................................8 2.1 POTENTIAL BENEFITS FOR LOCAL COMMUNITIES ......................................................... 8 2.2 ADVERSE IMPACTS ON LOCAL COMMUNITIES .............................................................. 8 SECTION 3. LEGAL FRAMEWORK RELATED ETHNIC MINORITIES .............. 10 3.1 LEGAL STATUS OF M INORITY E THNIC GROUPS ......................................................... 10 3.2 POLICIES AND LEGAL PROVISIONS OF VIETNAM RELEVANT TO THE ETHNIC MINORITIES ..................................................................................................................................... 10 3.3 THE WORLD BANK POLICY ON INDIGENOUS PEOPLES ............................................... 11 SECTION 4. CONSULTATION AND INFORMATION DISCLOSURE ................... 13 SECTION 5. COMPLAINTS AND GRIEVANCES ..................................................... 15 SECTION 6. MONITORING AND EVALUATION ..................................................... 18 SECTION 7. GUIDELINES FOR ETHNIC MINORITY DEVELOPMENT PLAN (EMDP) ........................................................................................................................... 19 7.1 PROJECT PRINCIPLES FOR ETHNIC MINORITY DEVELOPMENT PLAN ........................... 19 7.2 ISSUES IN LAND ACQUISITION AND RELOCATION OF ETHNIC MINORITIES ................. 19 7.3 PREPARATION OF ETHNIC MINORITY DEVELOPMENT PLAN ....................................... 20 General Directorate of Energy 1 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) Acronyms and Abbreviation AP Affected Person CEMA Committee for Ethnic Minority Affairs CPEE Clean Production and Energy Efficiency DP Displaced Person DPC District People’s Committee EE Energy efficiency EMDP Ethnic Minority Development Plan EMPF Ethnic Minority Planning Framework EMs Ethnic Minorities ESCOs Energy Service Companies GFU Grievance Facilitation Unit IBRD International Bank for Reconstruction and Development IDA International Development Association IEs Industrial Enterprises MOIT Ministry of Industry and Trade MONRE Ministry of Natural Resources and Environment NOL No Objection Letter of WB OP Operational Policy PB Participating Bank PC People’s Committee PCR physical cultural resources PFIs Participating Financial Institutions PMB VEEIEs Projects Management Board PMU Project Management Unit, representing Project Owner PO Project Owner PPC Provincial People’s Committee SA Social Assessment TA Technical Assistance VEEIEs Vietnam Energy Efficiency for Industrial Enterprises WB World Bank General Directorate of Energy 2 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) SECTION 1. INTRODUCTION 1.1. Project Description Vietnam is one of the most energy intensive countries in East Asia in which Industrial growth has been one of the key drivers of Vietnam’s increasing energy intensity, accounting for 48 percent or almost half of the final energy use. Subsequently, Vietnam Government has its best efforts on energy efficiency (EE)/saving promotion such passed Law on Energy Efficiency and Conservation, issued a series of decrees to promote EE by the Prime Minister, and set a target of 5-8% for energy savings from 2012 to 2015 compared to the forecast energy demand. The Vietnam Energy Efficiency for Industrial Enterprises (VEEIEs project) is one of the Government’s effort as a national target program. The proposed overall project objective is to improve energy efficiency in the industrial sector and contribute to achieving the government’s energy efficiency and GHG reduction objectives. The current design does not envisage any constraint on the type and size of industrial enterprises participating in the VEEIEs project. Eligibility could be determined by setting minimum energy savings requirements and demonstrating the financial performance of the enterprise. This is an integrated IBRD/IDA-funded project designed to help remove the principal barriers to investments in industrial EE projects including components as follows. Component 1 – Energy Efficiency Investment Lending (US$312 million, of which US$200 million from IBRD, US$50 million from PFIs, and US$62 million from IEs) • This component consists of an EE lending program of US$312 million over five years: (a) US$200 million in IBRD debt financing; (b) PFIs will co-finance project activities, financing 20 percent of the loan to IEs; and (c) sub-borrowers (i.e. IEs) will contribute 20 percent of investments as equity financing, which is common practice for loan applications in Vietnam. • A US$200 million IBRD loan will be on-lent by MOF to selected PFIs. The PFIs in turn will lend the funds to IEs and/or energy service companies for EE investment subprojects. Their lending rates will be determined based on market conditions and will adequately cover the financing and operating costs and provide for a reasonable profit margin for the PFIs. • The PFIs will be selected in accordance with financial and non-financial criteria. Non-financial criteria will include demonstrated EE lending strategy/commitment, experience and ability to generate a solid EE project pipeline. The selection of PFIs will fully comply with the Bank’s OP10.0 requirements. The IBRD funds will be allocated among the selected PFIs based on the demonstrated pipeline and remaining funds will be allocated on a first come, first served basis. • An Operational Manual (OM) will be developed which outlines selection criteria for sub-borrowers and subprojects, appraisal procedures and guidelines, roles and responsibilities of the PFIs and the government, PFIs’ internal institutional arrangement for project implementation, technical evaluation, environmental and social, procurement and financial management frameworks that are consistent with the Bank and Vietnamese Government rules and procedures. During project implementation, the PFIs will be responsible for identifying, appraising, and financing subprojects that meet the criteria in the General Directorate of Energy 3 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) OM, and bear all associated risks. Component 2 – Technical Assistance and Capacity Building for Improving Energy Efficiency (US$3million financed through IDA) • This TA and capacity building component will assist: (a) MOIT and relevant government agencies, which are responsible for EE policies and targets, to implement voluntary agreements with relevant industries, improve incentives for industry to carry out EE investments and develop mandatory EE standards and benchmarks in the energy-intensive industries; (b) PFIs to improve their knowledge, experience and expertise in identifying, appraising, and implementing EE lending projects in the industrial sector and business development to generate deal flows; and (c) IEs and EE service providers (such as ESCOs) to develop bankable projects. This component will be closely linked with the ongoing CPEE on developing EE policies and industry voluntary agreements. • IFC is providing advisory services to Vietinbank and is working with the Bank to identify a suitable support capacity mechanism once the PFIs are identified. Under the existing CPEE project, the Bank is providing TA to key energy consuming IEs to develop voluntary agreements, which could form a key part of the pipeline. The TA and capacity building for PFIs will include support to: (a) capacity building and training, particularly to staff at both the HQ and branches as well as risk assessment staff, including support for the development of necessary procedures, and the creation of an adequate knowledge base to evaluate and extend EE loans; (b) marketing and business development to generate a robust EE lending pipeline; (c) support to due diligence of eligible EE sub-loans, including financial, technical, social and environmental assessments; and (d) development of energy conservation-related financing instruments and risk management tools. • TA and capacity building to MOIT will support: (a) assessment of National EE target program period 2010-2015 and preparation for implementation of next phase EE target program period 2016-2020; (b) strengthen the policy and legal and regulatory framework for EE in IEs; (c) develop relevant energy use standards and establishment of EE industrial benchmarks; and (d) develop ESCOs, scale up and encourage EE voluntary agreement, and conduct a communication campaign to raise awareness on EE for IEs. • The TA and capacity building to the PFIs include: (i) business startup, including creation, organization, staffing, and initial business plan of the EE lending business unit (or team); (ii) capacity building and training, including support for the development of necessary financial instruments, procedures, and the creation of an adequate knowledge base to evaluate and extend energy efficiency loans; (iii) marketing and development of an EE subproject pipeline; (iv) support to due diligence of eligible EE sub-loans, including financial, technical, social and environmental assessments; and (v) development of energy conservation-related financing instruments and risk management tools. • The TA and capacity building for IEs will include support to: (a) identify EE projects and prepare relevant energy audits, technical design and EE project preparation; and (b) raise awareness through a communication campaign organized jointly with relevant industry associations. Capacity building on safeguards for the PFIs, ESCOs, and IEs as well as on-the-job training will be provided. TA to ensure adequate capacity for the review and implementation of General Directorate of Energy 4 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) safeguard issues will also be considered. 1.2. Ethnic Minority Planning Framework (EMPF) This Ethnic Minority Planning Framework (EMPF) is prepared based on the World Bank ’s OP 4.10 – Indigenous People (July, 2005 revised in April 2013 ) and the Vietnam’s relevant laws and regulations. This EMPF will be applied to all subprojects of VEEIEs with presence of ethnic minorities, and provides a framework for the required information dissemination and consultation process and formulation of Ethnic Minority Development Plans (EMDPs) for subprojects in order to ensure cultural, economic and social benefits of affected people. The EMPF will provide a framework on the process to be followed, field investigations to be carried out, and documentations to be prepared depending upon the types and scale of the impacts and applicability of the EMPF. Training and capacity building programs, to ensure adherence to the EMPF, will be carried out as part of the project mobilization and institutional strengthening for all involved, i.e. provincial authorities, participating banks, subproject developers, and the administrative units, responsible for reviewing subproject proposals against the eligibility criteria. Objectives of the EMPF In Vietnam, ethnic minority groups generally share the following characteristics: - An intimate understanding and long stay in the territory, land or area of their ancestors closed attachment to the natural resources; - Self-identification and recognized by neighboring members by their distinctive culture; - A language different from the national language; - A long traditional social and institutional system; - A self-provided production system. From the Bank perspective, OP 4.10 - Indigenous People as “a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: - self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; - collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; - customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and - an indigenous language, often different from the official language of the country or region” (OP 4.10, paragraph 4). The Bank's OP 4.10 - Indigenous People indicates that the strategy for addressing the issues pertaining to indigenous peoples must be based on the Free, Prior and Informed Consultation of the indigenous people themselves. Thus, identifying local preferences through direct consultation, incorporation of indigenous knowledge into project approaches, and appropriate early use of experienced specialists are core activities for any project that affects indigenous peoples and their rights to natural and economic resources. The main objective of the ethnic minority policy framework is to ensure that the development process fosters full respect for their dignity, human rights, cultural uniqueness and that ethnic minorities do not suffer adverse impacts during the General Directorate of Energy 5 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) development process and they will receive culturally-compatible social and economic benefits. The EMPF provides a framework for not only mitigate, but ensure benefits among the EMs of impacts and based on the free, prior and informed consultations with affected ethnic minority people. The EMPF ensures: (a) how to avoid potential adverse impacts on ethnic minority communities; or (b) when potentially adverse impacts on ethnic minority peoples are unavoidable, be minimized, mitigated, or compensated; and (c) ensure that EMs receive social and economic benefits in a culturally appropriate manner and inclusive in both gender and intergenerational terms, and obtain broad community support for the proposed sub-projects. 1.3 Ethnic Minorities in Vietnam Vietnam is a multiethnic country with over fifty distinct groups (54 are recognized by the Vietnamese government), each with its own language, lifestyle, and cultural heritage. Many of the local ethnic groups are known collectively in the West as Montagnard or Degar. The largest ethnic groups are: Kinh (Viet) 86.2%, Tay 1.9%, Tai Ethnic 1.7%, Mường 1.5%, Khmer (Khơ Me) 1.4%, Hoa 1.1%, Nùng 1.1%, Hmong 1%, others 4.1% (1999 census). The Viet (Kinh) people mainly inhabit in the Red River delta, the central coastal delta, the Mekong delta and major cities. The other 53 ethnic minority groups, totaling over 8 million people, are scattered over mountain areas (covering two-thirds of the country's territory) spreading from the North to the South. Among ethnic minorities, the most populated are Tay, Thai, Muong, Hoa, Khmer, Nung... with a population of around 1 million each, while the least populated are Brau, Roman, Odu with several hundred people each. The Viet people succeeded in establishing a centralized monarchy right in the 10th century. The Cham people once boasted a flourishing culture early in the history. The Tay, Nung, and Khmer peoples had reached high levels of development with the presence of various social strata. The Muong, H’mong, Dao, Thai peoples... gathered under the rule of local tribal heads. Many ethnic groups divided their population into social echelons, especially those who lived in mountainous areas. A number of ethnic minorities had mastered some farming techniques. They grew rice plants in swamped paddy fields and carried out irrigation. Others went hunting, fishing, collecting and lived a semi-nomadic life. However, a fundamental solidarity among ethnic groups has been established on top of this difference as a result of a century long cooperation on the soil of Vietnam. Right in the first century of the history, a mutual supplement in economic relationship between lowland people and mountainous people was formed. This solidarity had been unceasingly strengthened during wars of resistance for defending the country. Through the shared struggle for defending and building of the country and the mutual assistance for co-existence and development, a common community between the Viet people and other ethnic minority peoples had been established and continuously consolidated and developed. Ethnic minorities in Vietnam have enjoyed better legal and political status than minority groups have in many other countries in the region, or around the world. The State of Viet Nam has the policy of not discriminating against indigenous peoples as showed by the presence of Council for Ethnic Minority in the National Assembly. The Constitution that ethnic minority people could use their own languages to reserve its cultural distinctions. In the Government of Viet Nam, Committee of Ethnic Minorities Affairs (CEMA – a ministerial level agency) is responsible for all activities related to enthic mi nority people. In general, ethnic minority people have received many benefits as a result of government policies. They have received preferential treatment in college admission processes and other supports (e.g. cooking oil, kerosene, and iodized salt have been provided to them at heavily subsidized rates. The government, foreign donor agencies, and many NGOs have organized numerous General Directorate of Energy 6 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) development and special assistance programs that targeted ethnic minorities. Very large sums of money have been invested with the intention of helping the uplands in general and ethnic minorities in particular to “catch up” with lowland areas. And yet ethnic minorities in Vietnam are still severely disadvantaged. While many - probably most - ethnic minority households have better material standards of living today than they did ten or fifteen years ago, they are still not catching up with the rest of the country economically. Indeed, they are in many ways falling further behind. The remaining poor are harder to reach; they face difficult challenges of isolation, limited assets, low levels of education, poor health status—and poverty reduction has become less responsive to economic growth. Ethnic minority poverty is a growing and persistent challenge. Although Vietnam’s 53 ethnic minority groups make up less than 15 percent of the population, they accounted for 47 percent of the poor in 2010, compared to only 29 percent in 1998. Using a new poverty line that better reflects living conditions of the poor, 66.3 percent of minorities ar e poor in 2010 compared to only 12.9 percent of the Kinh majority population (WB, 2012). There are many reasons for the pervasive poverty of ethnic minority groups in Vietnam. The EM peoples are struggling and confronting challenged when having to deal wit h severe stresses placed upon them from population growth, natural resources depletion, and cultural dislocation resulting from decades of externally imposed change. General Directorate of Energy 7 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) SECTION 2. POTENTIAL IMPACTS OF THE PROJECT 2.1 Potential benefits for local communities The implementation of Energy Efficiency Project (EEP) will be an important factor for economic development in remote and rural areas, and provide more opportunities for rural households to access good electricity supply quality, convenient transport systems, and better job switching. The Government’s Poverty Reduction program will be more effective, reducing the gaps between regions. IE will improve their production efficiency by using preferential loans. They will be able to expand the production in the localities, strengthen the quality of customers’ services, reduce electric loss, and increase the number of users. Local communities have opportunities to approach new culture and technique, improve the quality of their lives and access better public services. Potential positive impacts of EEP on the ethnic minority community are described in the Table 1, as follows. Table 1 Beneficial Impacts of EEP No. Beneficial Impacts Description Positive support to the local socioeconomic Improving the spiritual and material development/support, crafts activities and 1 life of local people, contribute to services, improving the spiritual and material development and poverty reduction life of local people. The pre-construction, construction, operation 2 Creating more jobs for local people activities all require local general/skilled workers. The road leading to the IE’s plant through villages will be expended and upgraded. The Creating favorable conditions for 3 transportation of agricultural products and production activities. travelling of local people will thus become much easier and more convenient. 2.2 Adverse impacts on local communities Potential negative impacts of EEPs on the ethnic minority community are described in the following table. Table 2 Adverse Impacts of EEP No. Adverse Impacts Description Implementing the subproject components will acquire part of productive land of HHs within subproject area, adversely affecting Acquisition of productive land, production activities of the local people. 1 affecting livelihoods of local people Income from crops, farm produce of local people is affected due to several perennial plants, fruit trees are affected by construction activities of the subproject. General Directorate of Energy 8 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) No. Adverse Impacts Description Spoil rock/soil, debris, construction materials would drop onto farming fields Temporary impacts on production 2 during construction, and installation activities of local people activities would impact on production of households concerned. Subproject activities as transport of construction materials, construction activities, etc. would cause pollution in 3 Environmental pollution subproject and adjacent areas due to noise, dust, smoke, pollution of water and soil, hazardous waste, etc. A large number of workers will come and work in the community for a period of time. Impacts on native culture and This is also likely to pose a threat for issues 4 social security related to social security and cultural conflicts (i.e. commercial sex, drug abuse, theft etc.) Given the large number of workers and that some of them who are recruited but not 5 Risks for labor accidents trained, and are inexperienced in terms of labor safety, the chances of labor accidents are high. During the construction of the subproject, there is no way can avoid communicating Risks for HIV/AIDS infection, women 6 between workers and local people, so there trafficking and other social evils is a chance for HIV infection, women trafficking, and other social evils. General Directorate of Energy 9 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) SECTION 3. LEGAL FRAMEWORK RELATED ETHNIC MINORITIES 3.1 Legal Status of Minority Ethnic Groups All ethnic groups in Vietnam enjoy full citizenship and are protected on terms of equality under the law and national constitution. According to Article 60 of the Constitution (2013) stipulates that the State will take charge of and will ensure the promotion of the cultural values of all the nationalities in Vietnam. The Constitution ensures that all nationalities enjoy equal status. Nationalities other than Kinh are not designated as ethnic minorities in the Constitution, but “ethnic minorities” are recognized in development policies for mountainous regions. Articles 61 of the Constitution designate nationalities living in the mountainous regions as “national minorities” and stipulate that they will be given priority in education and health-care. A number of ethnic groups with small population numbers and important development constraints are recognized as “especially difficult national minorities” in development policies. 3.2 Policies and legal provisions of Vietnam relevant to the ethnic minorities To address land related issues and others in order to achieve purposes of hunger eradication and poverty reduction for the whole poor people in Vietnam in general and ethnic minorities in particular, many policies have passed by the Government of Vietnam, however in the framework of this EMPF, some key policies which take major influence on these purposes are presented, as follows: • The Electricity Law No. 28/2004/QH11 and the Law No. 24/2012/QH13on amending and supplementing a number of articles of the Electricity Law No. 28/2004/QH11 on support for the electricity sale price in rural, mountainous, border and island areas. • Decree of the Prime Minister No. 05/2011/NĐ-CP dated 14/ 01/2011 on ethnic Minorities work. • Decision of the Prime Minister No.132/QD-TTg, dated on 8th Oct., 2002 on allocation of productive and residential land funds for ethnic minorities in Central Highlands of Vietnam; • Program 134 or Decision of the Prime Minister No.134/2004/QD-TTg, dated on 20th July, 2004 regarding policies on providing the poor and hard-life ethnic minorities with productive and residential land; houses; and domestic water.; • Program 135 according to Decision of the Prime Minister No.135/1998/QD-TTg, dated on 31st July, 1998 and Decision of the Prime Minister No.551/QD-TTg, dated on 04 April, 2013 on supporting infrastructure investment, production for extremely poor/border communes, ones located in historic safety zones, and extremely poor villages; • Decision of the Prime Minister No. 153/2004/QĐ-TTg, dated on 17th Aug., 2004 regarding Strategic orientation for sustainable development in Vietnam (Agenda 21 of Vietnam) and Decision of the Prime Minister No. 432/2012/QĐ-TTg, dated on 12th April, 2012 regarding Approval of Strategic sustainable development in Vietnam, period 2011-2020. Participation/Grassroot Democracy To implement Directive No. 30-CT/TW of the Politburo dated 18th Feb., 1998 on the preparation and implementation of the regulation of democracy at grassroots level, the Government issued Decree No.79/2003/ND-CP dated 7th July, 2003 replacing Decree No 29/1998/ND-CP dated 11th May 1998, and issuing Ordinance No.34/2007/PL-UBTVQH11 General Directorate of Energy 10 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) dated 20 April, 2007 on the implementation of democracy in communes, ward and township levels. These Decree and Ordinance provide the basis in Vietnam to encourage formal participation of commune authorities. Today, community participation in the preparation of development plans at local level has been institutionalized in number of provinces, particularly those with significant ethnic minority population. The cultural, linguistic and social differences of upland ethnic groups, as well as the special needs of the economically disadvantaged groups are thus recognized. Legal Framework Implementation The Government agency responsible for upland ethnic groups is Committee for Ethnic Minority Affairs (CEMA). CEMA is a ministerial-level agency under the Government, performs its functions of state management on ethnic minority affairs nationwide and on public services within its authorities. The specific functions and tasks of the Committee are prescribed at the Decree No.60/2008/ND-CP dated 9th May, 2008 prescribing the functions, tasks, powers and organization structure of the Committee for Nationalities. In addition to the national office in Hanoi, CEMA has departments in each province. In 1995, CEMA developed a framework for External Assistance with the Development of Ethnic Minorities. This framework resulted in a strategy for the development of ethnic minority people within the Government’s goal of stability, sustainable growth and reduction of poverty. The key points of this framework are: - To fight against poverty; - To encourage active participation of the populations of ethnic minorities in their own development; - To reinforce the institutions involving ethnic minorities; - To develop natural and human resources in a sustainable manner; and - To ensure mutual respect between, and increase responsibility of, the parties involved. 3.3 The World Bank Policy on Indigenous Peoples The objective of the Bank’s policy on Indigenous People, OP 4.10 is to ensure that the development process fosters full respect for their dignity, human rights, and culture uniqueness. More particularly the central objective of the policy is to ensure that indigenous peoples do not suffer adverse effects during the development process, and that they receive benefits which are culturally appropriate to them. The strategy to meet the objectives of the Bank’s policy in addressing the issues pertaining to indigenous peoples must be based on their free, prior and informed participation of the indigenous people themselves, which requires identifying local preferences through direct consultation. Indigenous people are commonly among the poorest segments of a population. They engage in economic activities that range from shifting agriculture to wage labor or small-scale market- oriented activities. The definition of Indigenous Peoples used by World Bank is very similar to the Government of Vietnam” definition of Ethnic Minorities. Any project proposed for the World Bank financing that have a significant effect on ethnic minorities are required to follow the following procedure: - A screening to identify whether ethnic minorities are present in or have collective attachment to the project area; - If ethnic minorities are present, a social assessment will be prepared to determine the project’s potential positive and adverse impacts, and to examine if modification of the project design can minimize any adverse impacts and enhance positive benefits; - A process of free, prior and informed consultation with the effected ethnic minority communities in order to identify their views and to ascertain whether there is broad General Directorate of Energy 11 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) community support for the project; - If the free, prior and informed consultation concludes that ethnic minority communities broadly support the project, an Ethnic Minority Development Plan (EMDP) will be prepared in consultation with the communities, outlining the benefits that they will receive from the project and how any adverse impacts have been minimized or mitigated; and - Disclosure of the plan. To ensure that ethnic minority groups are included in appropriate ways in the development process, the policy requires the preparation of an Indigenous Peoples Plan (IPP). Although the policy is about Indigenous People, all ethnic minority groups (with the exception of Hoa/Chinese) in Vietnam are considered indigenous; therefore the IPP process is referred to as the EMDP process in Vietnam. General Directorate of Energy 12 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) SECTION 4. CONSULTATION AND INFORMATION DISCLOSURE Consultation activities will be continuously conducted throughout various stages of the project implementation (e.g. planning, implementation, monitoring). During these processes, public information and consultation will be conducted to gather information for assessing the project resettlement impacts and to provide recommendations on possible alternative technical options to reduce and/or mitigate potential negative resettlement impacts on local population and to proactively address issues or problems that may emerge during implementation. Local authorities, affected communities and EMs will be informed about the project proposal, its objectives and proposed activities, at an early stage of project preparation. The key discussion points will be focused on the development needs and priorities of local locality and their perception toward the project objectives. EMs will also be consulted on project potential impacts and possible measures to reduce potential negative impacts, and improve benefits for local people. (see Table 3 for further information) Meaningful consultation will be conducted through open public consultation to achieve the following objectives: (i) involvement of EMs and stakeholders in resettlement planning and enable them to participate in the assessment of impacts and risks; (ii) participation in making decision that affects their lives; (iii) transparency in information of benefits and entitlements and (iv) understanding the role of stakeholders and EMs in the application of OP 4.10. The consultation methods will be tailored to each targeted group, including (but not limited to) participatory rapid appraisal, stakeholder consultations through site and household visits, public meetings, focus group discussions and the household socioeconomic survey. The consultation process confirms that affected EM communities (i) broadly support project objectives; (ii) are aware of project benefits, and believe them to be culturally appropriate; (iii) have had sufficient opportunity to identify their preferences and constraints, as relate to compensation and resettlement as well as environmental issues. For Energy Efficiency for Industrial Enterprises Project, a two-step consultation process is designed to ensure the compliance with the Indigenous People Policy (OP4.10) of the World Bank: - During the project preparation, consultations with EM groups through free, prior and informed consultations to obtain their broad support. Responsible staff of Implementing Agencies (IAs) and commune’ authorities identify potentially affected EM communities and conduct consultations. Women of EM communities will be encouraged to join the consultation. Topics of group discussions include project information; potential impacts and proposed mitigation measures; concerns and question of ethnic minority people (EMs); and their broad support the project. - During the project implementation, consultations with EMs groups to obtain information on the particular needs, challenges and any potential areas where additional support and/or different kind of support may be required. IAs will ensure that all EMs groups are included in the consultation process and that the consultations are conducted in an interactive way, promoting open discussion. At subproject level, the respective EMDP will define specific actions defining how each EMs will be fully informed and consulted by the project management unit and the relevant unit of District Peoples' Committee (DPC) and/or Communes Peoples' Committees (CPC). The participation of women in consultation process will be prioritized. Implementing Agencies (IAs) are responsible for establishing and maintaining suitable tools/instruments to ensure that all activities related to consultation, participation and disclosure will be properly tracked and documented. Per requirement of OP 4.10, the Vietnamese version of this EMPF and all EMDPs will be General Directorate of Energy 13 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) available to the public at the PFIs, PMBs, project sites and VDIC in Vietnam before and after it is approved by the Government. The English version of all EMPF and EMDPs will be disclosed in VDIC in Vietnam and in the InfoShop in Washington, D.C. both before and after they are approved by relevant authorities. All social safeguard instruments will also be made available at relevant websites. To the extent possible, the PMB will made social safeguard instruments publically available through newspaper, leaflets, local radio to ensure a wide access to this information. Table 3 Consultation Schedule for EMDP No. Task Responsible person Material & forms Inform ethnic minority commune Project brochure IEs or 1 leaders and local authorities about (IEs to provide consultants the sub-project sample) Conduct screening to determine types and numbers Provide 2 of ethnic minority households living in area of IE or IE’s Consultants Screening/EM zone of influence of subproject. Inventory Form Request EM commune leaders, local authorities to 3 IEs, PFIs Official letter help with completing Screening/EM Inventory Undertake social impact assessment ethnic SIA Form minority households in zone of influence/area of subproject. Conduct focus group discussions with 4 IE or IE’s Consultants three separate groups of ethnic minorities as part of SA: leaders; men; and women 5 Analyze and write up findings of SA IE or IE’s Consultants SIA Form Meet EM leaders and members and discuss 6 IE or IE’s Consultants findings of SA Prepare Action Plan with local Action Plan 7 authorities, ethnic minority IE or IE’s Consultants Form representatives and their leaders Meet with designed Engineers to discuss feedback from the 8 IE or IE’s Consultants commune and use information to design and mitigation measures 9 Send all Inventories, SAs, Action Plans to PFIs IEs Summarize information and submit to IDA/World Bank. Important – the reports should be submitted 10 PFIs with submission of its proposed subproject Program. IEs, PFIs, Local authorities, Monitor implementation of Ethnic Minority Action Representatives of 11 Monitoring Reports Plan EM, Independent Monitors for RP implementation. General Directorate of Energy 14 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) SECTION 5. COMPLAINTS AND GRIEVANCES The IEs shall establish a complaints and grievances mechanism to receive and resolve the resettlement, cultural conflicts, access natural resources, livelihood and agricultural land issues of project-affected communities/person/EMs. The mechanism shall be based on principles as (i) proportionality; (ii) accessibility; (iii) transparency; and (iv) cultural appropriateness, as follows. (i) Proportionality means scaling the mechanism to the project needs. In a project with low potential adverse impacts, simple and direct mechanisms for problem solving is preferred for addressing and resolving complaints such as public meetings, telephone hotline, existing media, brochures, and a community liaison officer; (ii) Accessibility means establishing a mechanism which is clear, free of charge and easy to access for all segments of the affected communities/EM households and other potential stakeholders. The best way of achieving this is to localize the point of contact. This is valid both for the owner and its construction contractor. Related to that, staff with the appropriate skills, training and familiarity with community liaison work should be employed in the field as quickly as possible. Accessibility enables owner to build more constructive relationships with local communities. This will also help intervene quickly in any dispute or social unrest and in an appropriate manner because maintaining a regular presence of a familiar face in the field greatly helps engendering trust and thus, constructive and closer relations; (iii) Transparency means that members of the affected communities know who is responsible for handling the complaints and communicating the outcomes of corrective actions to be taken about the complaints. This will be helpful in that people have confidence in the grievance mechanism to be used both by project owner and the construction contractor; (iv) Culturally appropriateness means having cultural sensitiveness while designing and executing the grievance mechanism. To implement these principles, the IEs will be accessible to its stakeholders and should respond to their complaints in the shortest possible time. The critical issue for responding to complaints is to ensure that all received complaints are recorded; relevant division of the IEs is responsive to complaints; and that corrective actions are mutually acceptable. Thus, responses to complaints will be satisfactory for both parties, actions are followed up, and the complainants will be informed about the outcomes of the corrective actions. (see Figure 1) In case, there is no agreement between the parties and the project affected communities/person, complaints and grievances shall be submitted to state justice system with responsibilities as follows. First level - At Commune People’s Committee (CPC) An aggrieved affected household may bring his/her complaint before the receiving department of a Commune People’s Committee to be received and guided for necessary procedures. The CPC will meet personally with the aggrieved affected household and will have 5 days following the lodging of the complaint to resolve it (Note: in remote and mountainous areas, the complaint should be resolved within 15 days. The CPC secretariat is responsible for documenting and keeping file of all complaints that it handles. Upon issuance of decision of CPC, the complainants can make an appeal within 30 days. If the second decision has been issued and the household is still not satisfied with the decision, the household can elevate his/her complaint to the DPC. General Directorate of Energy 15 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) Second level - At District People’s Committee (DPC) Upon receipt of a complaint from a household, the DPC will have 15 days (or 45 days in remote and mountainous areas) following the lodging of the complaint to resolve the case. The DPC is responsible for documenting and keeping file of all complaints that it handles. Upon issuance of decision of DPC, the complainants can make an appeal within 30 days. If the second decision has been issued and the household is still not satisfied with the decision, the household can elevate his/her complaint to the PPC. Third level - At Provincial People’s Committee (PPC) Upon receipt of complaint from the household, the PPC will have 30 days (or 45 days in remote and mountainous areas) following the lodging of the complaint to resolve the case. The PPC is responsible for documenting and keeping file of all complaints. Upon issuance of decision of PPC, the household can make an appeal within 45 days. If the second decision has been issued and the household is still not satisfied with the decision, the household can elevate his/her complaint to the court within 45 days. Final level - Court of Law Decides Should the complainant file his/her case to the court and the court rule in favor of the complainant, then provincial government agency will have to increase the compensation at a level to be decided by the court. In case the court will rule in favor of PPC, the complainant will have to receive compensation as described in the approved compensation plan and comply with all requirements of land clearance. To assure that the mechanism described above is pragmatic and acceptable to affected EMs, consultations with local authorities and affected communities about this mechanism is in need, particularly consultations with vulnerable groups. General Directorate of Energy 16 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) Complaints and Grievances from Affected Person/Ethnic minority households (AP/EMHH) Verbally or in writing Community Representative (CR) Verbally or in writing IEs (Complaints and Grievances team) Discuss among (AP)/(CR) and/(The IE and /or EPC contractor) AP/EM HH may resort to the Court No of Law Decides Agreement obtained? Yes Action as agreed Close out Figure 1 Basic Complaints and Grievances Mechanism of the Project General Directorate of Energy 17 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) SECTION 6. MONITORING AND EVALUATION To ensure that the EMDPs are transparently implemented and complies with the EMPF and the World Bank’s Indigenous People Policy (OP4.10), a monitoring and evaluation mechanism is necessarily established for all project components throughout the process of the project implementation. Monitoring and evaluation is a continuous process. The PMB will be in charge of the internal monitoring and an external agency recruited by PMB will be in charge of the independent monitoring and evaluation. To the extent possible, PMB will consider to integrate the internal and external monitoring required under OP 4.10 into similar task under OP 4.12. The findings of both RP monitoring and EMDP monitoring should be included in one report to submit to the PMB and PFIs and the WB for review. The internal monitoring will be monthly conducted by the PMB, with the following objectives: - ensure that all negative impacts of the subprojects on EMs are mitigated, minimized or compensated in compliance with EMDP under this EMPF; - ensure that measures of benefit maximization and adverse impact mitigation are implemented in culturally appropriate way for ethnic peoples; - identify whether the free, prior and informed consultations for ethnic people communities are conducted in culturally appropriate manner for ethnic peoples or not; - determine if complaint procedures are followed the EMPF and propose solutions if there are pending issues; - conform with relocation and land clearance and construction commencement to ensure that affected EMs have been provided with compensation, allowance, and relocation satisfactorily before construction commencement. The external monitoring will be conducted by an external agency specialized in the social science. Key indicators of external monitoring and evaluation are presented as follow: - Public consultation and awareness of project benefits, resettlement policy and entitlements of affected EM (if relevant); - Level of satisfaction of affected EMs with the provisions and implementation of the EMDP; - Grievance redress mechanism (documentation, process, resolution); - Effectiveness and sustainability of entitlements and income rehabilitation measures for affected EMs; - Gender impacts and strategy; - Capacity of affected EMs to restore/re-establish livelihoods and living standards. Special attention provided or to be provided to severely affected and vulnerable households; - Resettlement impacts caused during construction activities; - Participation of affected EMs in EMDP planning, updating and implementation; - Institutional capacity, internal monitoring and reporting; and - Channeling of government funds for compensation payment and allowances for severely affected EMs if any. General Directorate of Energy 18 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) SECTION 7. GUIDELINES FOR ETHNIC MINORITY DEVELOPMENT PLAN (EMDP) During the preparation phase of the subprojects the main focus will be to carry out the screening, social assessments and option assessment, establish the institutional framework, inform and sensitize all the affected ethnic minority communities, conduct a free, prior, and informed consultation with the communities, and assess whether the communities are provided their broad support for the subproject. 7.1 Project principles for Ethnic Minority Development Plan The basic ethnic minority development principles of the project include: - Ethnic minorities are encouraged to participate in all project activities and they will benefit from the project in a way which is culturally appropriate; - Adverse impacts on ethnic minority communities, as distinct and vulnerable groups, should be avoided or minimized by exploring all viable options; - Preparation of EMDP (as part of project preparation) and its implementation is to be carried out with participation and consultation of ethnic minority people; and - Implementation schedule and budget for EMDP (including participatory mechanisms and surveys) and implementation must be incorporated into each project. 7.2 Issues in Land Acquisition and Relocation of Ethnic Minorities In case of acquisition of land occupied by EM, both the Resettlement Policy Framework and this EMPF must be complied with. The policy requires a Resettlement Plan compatible with ethnic minorities’ cultural preferences, using a land-based resettlement strategy. The following will be observed in regard to preparation for land acquisition and relocation of ethnic minorities: • The REDP will not agree to physical relocation of ethnic minority peoples if they have not provided their broad support; • Affected ethnic minorities, together with consultative committee, participate in the preparation of any relocation; • Food security in the new settlement is ensured at a minimum to the degree of the previous settlement; • The relocation sites would have access to facilities and services at least of the same level, if not better, to the land lost; • Information on relocation to affected ethnic minorities is provided using the communication guidelines recommended in the following section; • Relocation of affected communities would be completed before construction work starts; • If directly affected by a project, ethnic minorities are entitled to compensation for all lost land and affected assets, incomes and businesses at replacement costs and provided with rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, incomes and productive capacity; • Lack of legal rights to assets and access lost or adversely affected will not bar them from entitlement to such compensation and rehabilitation measures; • In case where relocation or displacement of ethnic minority households is required, General Directorate of Energy 19 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) efforts shall be made so that the level of existing infrastructure and the social and cultural institutions of the people being resettled, the host community and community they moved from should be maintained or improved; • Compensation for ethnic minorities, female headed-households, families with the disabled or elderly will be carried out with respect for their cultural values and specific needs. 7.3 Preparation of Ethnic Minority Development Plan a. Screening As a first step Screening will be carried out to identify presence of ethnic minority communities and anticipated opportunities and risks that are related to the implementation of the project. Screening will also identify the environmentally sensitive and socially critical areas including special use forests that would be excluded from any proposed project activities. All communes that are candidates for sub-Project will be visited (at the time of first consultation with communes) by a team made up of the World Bank Task Team, IEs, and local authority. Prior to the visit, the respective IEs will send a letter to the communes informing the commune leaders that they will be visited by the respective IE or project consultants which would like to discuss sub-project. The letter will request that the communes invited to the meeting have representatives of farmers and women associations, village leaders, and key staff of commune for discussion on the sub-project. If there are ethnic minorities in the commune, their leaders should be invited to the meeting as well. During the visit, the commune leaders and other participants will present their views with regards to the sub-project. At this visit, the team will undertake a screening for ethnic minority population with the help of ethnic minority leaders and local authorities. The screening will check for the following: • names of ethnic groups in the commune • total number of ethnic minority groups in the commune • percentage of ethnic minority of commune population • number and percentage of ethnic minority households along the zone of influence of the proposed sub-Project. Table 4 Screening Guidelines for EMDP When to do screening: At the time of the first consultation with a commune. What information to collect: The screening will collect demographic data of ethnic minorities who live along the zone of influence. How to collect the information: It can be obtained from ethnic leaders, village leaders and commune authorities. Who will do the screening: IE or their Consultants Time required: The screening of each commune will take about one day to complete. b. Social Assessment If the results show that there are ethnic minority communities in the zone of influence of the proposed sub-project, a Social Assessment (SA) will need to be undertaken by the IE or their Consultants for those project areas to evaluate the project’s potential positive and adverse effects on the ethnic minority communities, and to examine project alternatives where adverse effects may be significant. The breadth, depth, and type of analysis in the social assessment are General Directorate of Energy 20 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) proportional to the nature and scale of the proposed project’s potential effects on the ethnic minority communities, whether such effects are positive or adverse. The social assessment is carried out by the social scientists (consultants) whose qualifications, experience, and TOR are cleared by the Bank. The SA will include: baseline data, institutional analysis, it will determine the framework for consultation during the project cycle. Information will be gathered from several separate group meetings: ethnic minority leaders; ethnic minority men; and ethnic minority women, especially those who live in the zone of influence of the proposed work under sub-project. Discussions will focus on sub-project positive and negative impacts, community support; and recommendations for design and implementation of sub-project. The borrower will be responsible for analyzing the SA, and for leading the development of an action plan with the ethnic minority communities, project engineers and other staff. Various decisions on next steps will be described as follows: • If the SA indicates significantly adverse impacts and/or strong resistance of the ethnic minority community, IE or their Consultants is required to explore alternative options. It is worth to note that the impacts are not only in terms of land losses (which are regulated in respective RP), but also other intangible impacts at community level; • If the ethnic minority community supports the sub-Project implementation an EMDP will be developed to address the potential positive or negative impact of the subproject. Table 5 Social Assessment Guidelines for EMDP When to conduct SA: If the screening results show that there are ethnic minority households along the zone of influence of the subproject, a social impact assessment will be undertaken. What information to collect: The SA will gather relevant information on the following: demographic data, social, cultural and economic situation; and social, cultural and economic impact-positive and negative-of the proposed sub- project. How to collect the information: Information will be gathered separate group meetings with the following ethnic minority groups: 1) EM leaders; 2) EM men; and 3) EM women, especially those who live in the zone of influence. Who will conduct the SA: IE or their Consultants. Time required: The SA data collection for each commune will take about two to three days. It will take another two or three days to analyze the data and prepare the final report. c. Ethnic Minority Development Plan (EMDP) When the SA identified that the proposed subproject affects EMs, an EMDP is required for the subproject to ensure that (a) EM peoples affected by the subproject receive culturally appropriate social and economic benefits; and (b) when potential adverse effects on EMs are identified, those adverse effects are avoided, minimized, mitigated, or compensated for. When ethnic peoples are the sole or the overwhelming majority of direct project beneficiaries, the elements of an EMDP should be included in the overall project design and in RP of the subproject, and a separate EMDP of each subproject is not required. The IAs is in charge of preparing EMDP with the technical support of qualified social consultant. The EMDP will be prepared in a flexible and pragmatic manner, and its level of General Directorate of Energy 21 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) detail varies depending on the specific project and the nature of effects to be addressed. The EMDP includes the following elements: (i) A summary of the information on the legal and institutional framework applicable to EMs on the demographic, social, cultural, and political characteristics of the affected Ethnic Peoples’ communities, the land and territories that they have traditionally owned or customarily used or occupied, and the natural resources on which they depend; (ii) A summary of the social assessment; (iii) A summary of results of the free, prior, and informed consultation with affected ethnic peoples’ communities that was carried out during the project prepar ation and led to broad community support for the project; (iv) A framework for ensuring free, prior, and informed consultation with affected ethnic peoples’ communities during the project implementation; (v) An action plan of measures to ensure that the EMs receive social and economic benefits that are culturally appropriate, including, if necessary, measures to enhance the capacity of the project implementing agencies; (vi) When potential adverse effects on ethnic peoples are identified, making a appropriate action plan of measures to avoid, minimize, mitigate, or compensate for these adverse effects; (vii) The cost estimates and financing plan for the EMDP; (viii) Accessible procedures appropriate to the project to address grievances by the affected ethnic peoples’ communities arising from project implementation. When designing the grievance redress procedures, the availability of judicial recourse and customary dispute settlement mechanisms among the Ethnic Peoples should be taken into account; (ix) Mechanisms and benchmarks appropriate to the project for monitoring, evaluating, and reporting on the implementation of the EMDP. The monitoring and evaluation mechanisms should include arrangements for the free, prior, and informed consultation with the affected ethnic peoples’ communities. d. Implementing EMDP All EMDPs prepared under VEEIEs must be reviewed by PFI and WB before the official implementation. IE or their Consultants need to discuss and get Bank’s NOL before entering the official preparation of such document. IAs is responsible to collaborate with relevant local authority in implementing EMDP. All activities of the EMDP implementation throughout a subproject should take place in a culturally appropriate way for affected EM people. The IE or their Consultants will set up routines for regular dialogue and meetings with local authorities, representative community groups, and traditional leaders representing EMs. Mass organizations, particularly the Women’s Union, will play an active role in implementing and monitoring of the EMDP. The capacity of the executing agencies at province and district levels for social safeguard implementation should be strengthened and improved to meet the WB’s requirements. It also needs to build capacity of local communities on implementation and monitoring of RP and EMDP. Therefore, IE or their Consultants is responsible for providing training courses and workshops on the implementation and monitoring of RP and EMDP for local executing agencies and communities. The training should be organized before starting any activities relating to the implementation of RP and EMDP. Training courses should be held at each level General Directorate of Energy 22 Vietnam Energy Efficiency for Industrial Enterprises Project Ethnic Minority Planning Framework (EMPF) including province, district and commune so that different stakeholders could be involved in. The training courses given to ethnic peoples should be in a culturally appropriate manner for them. The EMDP should have an implementation schedule that is coordinated with the subproject implementation. Logically, social impact assessments and group meetings should be undertaken before sub-project designs are prepared. Compensation for land acquisition should be satisfactorily completed at least one month prior to start of civil work. Monitoring should take place at the recommended and specified times by the EMDP during project cycle. The budget for the EMDP implementation will be estimated during the EMDP preparation based on specific activities proposed for each EMDP. The EMDPs will define and provide budgets for the implementation. The funding for the preparation and implementation of EMDPs comes from the Governmental counterpart fund (could be included in budget for the social safeguard policy implementation of the project). Table 6 Action Plan Preparation Guidelines for EMDP When to prepare action plan: Immediately after the SA, if the ethnic minority supports for the sub-project. How to prepare an action plan: The plan to be prepared based on the results of consultation and participation of EM groups. What is in an action plan: It will consist of (1) legal framework; (2) mitigation activities; (3) technical identification of development; (4) institutional arrangement for implementation; (5) implementation schedule; (6) monitoring and evaluation; and (7) cost and financing plan. Who will prepare the action plan: IE or their Consultants in coordination with the commune leaders, ethnic minority leaders in consultation with the EM community and district authority. Who will implement the action plan: IEs and MOIT’s PMBs, Communes and EM leaders. General Directorate of Energy 23