VIE: Mong Duong 1 Thermal Power Plant

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1 7 th Independent Monitoring Report September 2011 VIE: Mong Duong 1 Thermal Power Plant Prepared by the Development Research and Consultancy Center (DRCC) for Viet Nam Electricity (EVN) Thermal Power Project Management Unit 1. The Independent Monitoring Report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB s Board of Directors, Management, or Staff and may be preliminary in nature.

2 DEVELOPMENT RESEARCH & CONSULTANCY CENTER No. 1 Lieu Giai Str. Ba Dinh Dis. Ha Noi City, Vietnam Phone No: (04) Fax: (04) drcc@fpt.vn REPORT ON RESULTS OF EXTERNAL MONITORING OF RESETTLEMENT ACTION PLAN IMPLEMENTATION PROJECT MONG DUONG THERMAL POWER PLANT 1 MONG DUONG ELECTRICITY CENTRE QUANG NINH PROVINCE HA NOI, 2011 Ha Noi, 15 th September

3 Subject: Independent Report submitted by DRCC For Independent monitoring of RAP implementation Mong Duong 1 Thermal Power Plant Project, Quang Ninh Province. TO: ASIAN DEVELOPMENT BANK (ADB) IN HA NOI THE THERMAL POWER PROJECT MANAGEMENT UNIT 1. The Development Research and Consultancy Center (DRCC) would like to submit the report on Independent monitoring of RAP implementation, Mong Duong 1 Thermal Power Plant, Quang Ninh Province. In this report, we would like to present the results of the seventh monitoring batch in the independent monitoring of RAP implementation of Mong Duong 1 Thermal Power Plant Project, Quang Ninh Province. Your consideration and opinions would be highly appreciated. Yours truly, DIRECTOR Nguyen Hong Quang TABLE OF CONTENTS 2

4 I. CONSTRUCTION PROGRESS Package of leveling the delta and rectifying the flow of Mong Duong River Electricity package for construction Package of building working house for the Consultant and PMU at the construction site Package of building road connecting the Mong Duong Electricity Centre and the Highway Consulting package - phase The EPC package Freshwater supply package Design package of cooling water discharge channel:... 7 II. OBJECTIVE OF EXTERNAL MONITORING THE 7 TH BATCH Implementation activities Methods used for this monitoring time... 8 III. MONITORING RESULT Site clearance progress Compensation payment and site clearance Environmental issues IV. CONCLUSION ABBREVIATIONS 3

5 ADB DMS DRCC PC PMU RP TOR Asian Development Bank Detailed Measurement Survey Development Research and Consultancy Center People s Committee Project Management Unit Resettlement Plan Terms of Reference I. CONSTRUCTION PROGRESS For the Mong Duong Thermal Power Plant project, until August of 2011, ground leveling has been completed for 90%. At the time being, main activities are leveling ground and rectifying the Mong Duong river s flow; construction electricity package; 4

6 construction package which connects the Mong Duong Electricity Centre with the Highway 18; Construction package of building working house for the Consultant and PMU at the construction site; discharge channel; completing the operation house and preparing to construct the residential area for the employees, etc. In addition, the PMU and Compensation Committee has been completing the DMS, making compensation plan for the area where the fresh water reservoir is built. According to progress report of the PMU of Mong Duong 1 Thermal Power Plant sent to the Ministry of Trade and Industry, up the July , the construction situation is as follows: 1. Package of leveling the delta and rectifying the flow of Mong Duong River - On November , construction contract was signed with LICOGI Infrastructure Development and Construction Corporation. So far, the construction volume has been completed for 95%. - Handing over the site: The Mong Duong 2 Project: the progress has met schedule; the site has been handed over to AES to start construction of the Mong Duong 2 project. Plot No. 1 (The main plant site 16.5ha): Site handing over is completed. Plot No. 2 (Pumping station, equipment site, technical processing area, etc. 27.6ha): Site handing over is completed. Plot No. 3 (Dry coal store 9.3ha): Construction is made for about 8.6 out of 9.3 ha. It is expected that at the end of August (15/8/2011), site will be handed over. The Mong Duong 1 Project: the progress has met schedule to start the EPC package of the main power plant. 2. Electricity package for construction - On February , the PMU signed contract with the Joint contractor of the Technical energy ltd. company and the branch 1.5 of the Power Construction Joint Stock Company 1. - It has been completed and ready for start of EPC. 5

7 3. Package of building working house for the Consultant and PMU at the construction site - On April , construction contract was signed with the Bach Dang 10 Joint Stock Company. - Until October , the package is completed and handed over to the PMU for management and working. 4. Package of building road connecting the Mong Duong Electricity Centre and the Highway 18 - On September , construction package was signed with the Bach Dang TMC Construction Investment Joint Stock Company - The package is planned to complete at the end of August Assessment on progress: It has met the progress to start EPC. 5. Consulting package - phase 1 - On December , a contract was signed with the Consulting Company WorleyParson (Singapore). - At present, the completed work accounts for 98% of the contract. The Consulting company has been negotiating with the PMU on the EPC package s contract. 6. The EPC package On June , the PMU issued correspondence No. 420/AND1-BEC inviting the Hyundai contractor to negotiate the EPC package in the Mong Duong Thermal Power Project 1. At the time being, the PMU has implementing the final parts in contract negotiation and it is expected that negotiation of the EPC contract will be completed at the end of July It is planned that the EPC contract will be signed in October Freshwater supply package - Plan: Bidding, negotiation and contract: at the end of January Construction duration is 24 months from February 2012 to February

8 8. Design package of cooling water discharge channel: - On February , a consulting contract was signed with the Power Construction Joint Stock Company 1 for construction survey, construction design, making bidding document. - On March , the PMU submitted the document of construction design, estimate and examination report to EVN for approval. - On April , EVN organized a meeting for examining the document. - At present, the Consultant is completing the document based on opinions from the examination meeting. - Plan: Construction activities will be started in February II. OBJECTIVE OF EXTERNAL MONITORING THE 7 TH BATCH The independent monitoring on site clearance activities of the Mong Duong Thermal Power Plant project is implemented. According to requirement in TOR, this task is carried out every 3 months. However, progress of site clearance is normally slower than project progress; the Consultant carries out independent monitoring task based on the field site clearance. This issue is approved by the Mong Duong Thermal Power Plant 1 PMU. 1. Implementation activities: Table 1: Summary of activities in the independent monitoring on site clearance Field activities Objectives Duration Report Socio-economic survey on affected The 1st time households in the clearance area of the power plant October, 2008 Completed report submitted Independent monitoring on RP Completed The 2 nd time implementation in the clearance area of March, 2009 report submitted in the power plant April, 2009 The 3 rd time Monitoring and updating living standards of the relocating households; Visiting and interviewing the households having August September, Completed report submitted in complaints and grievances; Independent monitoring on RP implementation in the 2009 October,

9 clearance area of the line 35kV Socio-economic survey on potential The 4 th time affected households by the fresh water reservoir, verify the shortcomings in compensation for households in the area November, 2009 Completed report submitted in December, 2009 of the power plant Monitoring and updating the construction The 5 th time progress and living standards of the relocating households; Visiting and interviewing the households having complaints and grievances; Independent March, 2010 Completed report submitted in April, 2010 monitoring on RP implementation in the clearance area of the line 35kV and the water pipeline. Monitoring and updating the construction progress and living standards of the The 6 th time relocating households; Visiting and interviewing the households having complaints and grievances; Independent monitoring on RP implementation in the August, 2010 Completed report submitted in September 2010 clearance area of the line 35kV and the water pipeline, dump site, etc. Monitoring and updating the progress of site clearance, living standards of relocating households; Visiting and interviewing the households having The 7 th time complaints and grievances; Independent July 2011 monitoring on RP implementation in the clearance site for building residential area for the employees; cooling water discharge channel, etc. 2. Methods used for this monitoring time: The independent monitoring team met and interviewed the stakeholders to verify compensation payment activities; complaint and grievance of affected households; and to monitor the RP implementation for households affected by construction of the living 8

10 house and households affected by the ending part of cooling water discharge channel. Details are as follows: - The PMU at the PMU s office located in operation house of the Mong Duong Electricity Centre, Cua Ong ward; Cam Pha town; - Mong Duong ward s People Committee, at the Committee s office located in Mong Duong ward, Cam Pha town; - Compensation Committee of Cam Pha town, at the office of People s Committee of Cam Pha town; - Visit and interview the affected households. III. MONITORING RESULT 1. Site clearance progress Compensation payment and site clearance for components and packages of the power plant has been completely carried out by the Compensation Committee and the PMU in co-operation with the People s Committee of Mong Duong ward, Cam Hai commune. The completed payment and solution for shortcomings are all shown in the sixth report. In this seventh monitoring batch, the external monitoring agency focuses on monitoring of the following content: (i) (ii) (iii) Compensation payment for households affected by construction of residential area for the employees has been completed since July ; Compensation payment and site clearance for households affected by the cool water discharge channel have been basically completed on July in the area of Cam Hai commune; DMS for households affected by construction of the freshwater reservoir has been set up. 2. Compensation payment and site clearance 2.1 Residential area for the employees: The number of affected households by construction of residential area for the employees is 20. So far, compensation plan and payment have been made for 11 households. 9 households have petitions that the road in the residential area for 9

11 employees connecting with the Highway 18 would be adjusted in order not to affect these households. Regarding this issue, the Compensation Committee of Cam Pha town has submitted the PPC to consider and issue the official decision. Therefore, compensation plan has not been approved for these 09 affected households (if the road alignment is adjusted, these households will not longer be affected). Compensation payment for 11 households out of 20 households is conducted according to the following decisions: - Decision No. 646/QD-UBND dated February of the Cam Pha Town People s Committee on approval of the compensation, assistance and site clearance plan for the project of building residential area for the employees Mong Duong Electricity Centre, in Mong Duong ward, Cam Pha town. (i) Compensation and assistance amount paid for affected households: VND 210,235,100. (ii) Budget for site clearance and compensation activities: VND 4,204, Decision No. 896/QD-UBND dated April of Cam Pha Town People s Committee on approval of compensation, assistance and site clearance plan for the project of building residential area for the employees Mong Duong Electricity Centre, in Mong Duong ward, Cam Pha town (phase 2). Total compensation amount is VND 5,528,045,300 (i) Compensation and assistance amount paid for affected households: VND 5,419,652,300. (ii) Budget for site clearance and compensation activities (2%): VND 108,393, Decision No. 896/QD-UBND dated June of Cam Pha Town People s Committee on approval of compensation, assistance and site clearance plan (additional) for the project of building residential area for the employees Mong Duong Electricity Centre, in Mong Duong ward, Cam Pha town. Total compensation amount is VND 420,481,300 (i) Compensation and assistance amount paid for affected households: VND 412,481,300. (ii) Budget for site clearance and compensation activities (2%): VND 8,249,

12 - Decision No. 1634/QD-UBND dated June of Cam Pha Town People s Committee on approval of compensation, assistance and site clearance plan (additional) for the project of building residential area for the employees Mong Duong Electricity Centre, in Mong Duong ward, Cam Pha town. Total compensation amount is VND 1,264,049,200 (i) Compensation and assistance amount paid for affected households: VND 1,239,263,900. (ii) Budget for site clearance and compensation activities (2%): VND 24,785, Decision No. 1642/QD-UBND dated June of Cam Pha Town People s Committee on approval of bonus for 09 affected households who dismounted structures and handed over the site in timely manner in project: building residential area for the employees Mong Duong Electricity Centre, in Mong Duong ward, Cam Pha town. Total amount of bonus is VND 38,975,100 (i) Bonus paid for affected households: VND 38,210,900. (ii) Budget for site clearance and compensation activities: VND 764, Decision No. 2135/QD-UBND dated July of Cam Pha Town People s Committee on approval of compensation, assistance and site clearance plan for the project of building residential area for the employees Mong Duong Electricity Centre, in Mong Duong ward, Cam Pha town. Total compensation amount is VND 1,387,468,000. (i) Compensation and assistance amount paid for affected households: VND 1,360,262,700. (ii) Budget for site clearance and compensation activities (2%): VND 27,205, Ending part of the cooling water discharge channel: There are total 22 households affected by the ending part of the cooling water discharge channel. All of them live in the area of Cam Hai commune, Cam Pha town. At the monitoring time, 18 out of these 22 affected households have received compensation cash and site clearance has been carried out according to the following decisions: 11

13 - Decision No. 1269/QD-UBND dated May of Cam Pha Town People s Committee on approval of compensation, assistance and site clearance plan for the Project: ending part of the discharge channel of the Mong Duong Electricity Centre in Cam Hai commune. Total compensation amount is VND 3,684,031,900 (i) Compensation and assistance amount paid for affected households: VND 3,611,796,000. (ii) Budget for site clearance and compensation activities (2%): VND 72,235, Decision No. 1414/QD-UBND dated May of Cam Pha Town People s Committee on approval of compensation, assistance and site clearance plan for the Project: ending part of the discharge channel of the Mong Duong Electricity Centre in Cam Hai commune. Total compensation amount is VND 22,212,600 (i) Compensation and assistance amount paid for affected households: VND 21,777,600. (ii) Budget for site clearance and compensation activities (2%): VND 435, Decision No. 1992/QD-UBND dated July of Cam Pha Town People s Committee on approval of compensation, assistance and site clearance plan for the Project: ending part of the discharge channel of the Mong Duong Electricity Centre in Cam Hai commune. Total compensation amount is VND 6,596,717,500 (i) Compensation and assistance amount paid for affected households: VND 6,467,370,100 (ii) Budget for site clearance and compensation activities (2%): VND 129,347,400. The monitoring team has met representatives of the PMU and visited the households affected by the residential area for the employees in Mong Duong ward and ending part of discharge channel in Cam Hai commune. At the monitoring time, compensation 12

14 payment for 18/22 affected households has been completed. These affected households have received compensation cash without any complaint. For 04 remaining affected households, the Compensation Committee and People s Committee of Cam Hai Commune has identified the land origin for 03 households, namely Tran Hoa; Bui Ha Van and Ha Van Phu. One shortcoming is the case of Mr. Bui Dinh khe, village 3, Cam Hai commune who signed on DMS minute in July Total compensation amount is VND 455,251, Compensation for land is VND 222,109,100; - Compensation for structure is VND 200,689,700; - Compensation for crops is VND 32,452,200; Complaint of Mr. Khe is about the compensation unit price that the rate of VND 55,000 per m 3 of embanking by manual labour is low in comparison with the current market rate. According to Mr. Khe, this compensation rate is not enough to hire labour to do; at present, the price of embanking by machine is VND 8000/m 3 which is still considered low. Mr. Khe has sent complaint to the Site clearance Committee of Cam Pha town on July After discussing with the Site clearance Committee of Cam Pha town, the Cam Hai CPC and conducting consultation with the household of Mr. Bui Dinh Khe, the external monitoring team realizes that the Compensation Committee of Cam Pha town has applied the unit price issued by the Quang Ninh Province People s Committee and their performance is complied with site clearance procedures. In fact, reason of Mr. Bui Dinh Khe s complaint is the inflation causing fast reduction in price. This is an objective issue; therefore, complaint of Mr. Khe does not have sufficient grounds. At present, in September 2011, after being persuaded by the Compensation Committee and the PMU, household of Mr. Bui Dinh Khe has agreed to receive compensation cash for their affected assets and the household does not have any more complaint. 3. Environmental issues The independent monitoring team has visited the construction site and location where the operation house is building. The construction is in progress. We carry out consultation with some households living around the area and know that the construction activities do not cause difficulties to them such as noise and dust, etc. The flood situation as reported in the previous monitoring batches has been improved. The PMU has hired an 13

15 environment consultant agency that is specialized in monitoring and updating the environmental data in the project construction site. According to the consultant agency, at the time being, all environmental issues are still within permitted level. The Consultant unit also has periodically updated report submitted to ADB. IV. CONCLUSION (i) (ii) (iii) (iv) (v) Compensation Committee of Cam Pha town, the Mong Duong Thermal Power Plant PMU and People Committees of Mong Duong ward and Cam Hai commune have given much efforts in co-ordination to implement site clearance and compensation for project affected households. Project information dissemination, public health consulting, detailed measurement survey, pricing for affected assets and making compensation plan, etc. have been carried out well and complied with procedures; therefore, shortcomings and mistakes during the site clearance and resettlement process of the project have been minimized. Compensation and Site Clearance of Mong Duong Thermal plant project in the main plant area and at the pole base positions, water pipes, mud dump site, etc. are all completed. Compensation for land acquisition of 11/20 households in the package of building residential area for the employees has been completed since July There are 09 households expecting that the design of road will be adjusted. Regarding this issue, decision of the Province People s Committee is being waited to know whether the road design is adjusted or not to avoid impact on 09 households in the site to build residential area for the employees. Compensation payment for 19/22 households (land origin of 03 households is being identified) in the ending part of the discharge channel in villages no.3 and no.5 of Cam Hai commune has been completed and there is no complaint or query from local people. Basically, in this 7 th monitoring batch, there are not many new activities and the project progress has not changed much compared to the 6 th monitoring report submitted in September This monitoring batch mainly focuses on compensation payment and solving shortcomings of 2 packages which are 14

16 building residential area for the employees in the main plant area in Mong Duong ward and ending part of cooling water discharge channel in the area of Cam Hai commune. (vi) For the construction site of fresh water reservoir, DMS and compensation plan has been prepared. According to the Mong Duong Thermal Power Plant PMU, it is expected that the bidding, site clearance and compensation payment will be carried out in the fourth quarter of ANNEX LIST OF OFFICIALS AND HOUSEHOLDS PARTICIPATING IN THE INTERVIEW Name Address Status Nguyen Cong Chi Official of the PMU In charge of Site Clearance 15

17 Nguyen Van Quang Official of the PMU in Mong Duong In charge of Site Clearance Nguyen Tien Quang Compensation Committee of Cam Pha Town Deputy-head Bui Thi Suu Chairman of Cam Hai CPC Ha Thi Tieu Village 5, Cam Hai commune Land, structure, pond, grade 4 house. Ngo Thi Huong Village 5, Cam Hai commune Land, trees, structure, grade 4 house Khong Van Man Village 3, Cam Hai commune Doan Xuan Hue Village 3, Cam Hai commune Do Van Lan Village 3, Cam Hai commune Bui Dinh Khe Village 3, Cam Hai commune Bui Thanh Duoc Village 3, Cam Hai commune Khong Thi Hai Village 3, Cam Hai commune Nguyen Thi Ut Village 4, Cam Hai commune Pham Van Tinh Village 4, Cam Hai commune Land, structure Khong Van Viet Village 5, Cam Hai commune Khong Van Binh Village 5, Cam Hai commune Ngo Doan Suu Village 5, Cam Hai commune Ha THi Tieu Village 5, Cam Hai commune Do Van Ly Village 5, Cam Hai commune Nguyen Van Tan Village 5, Cam Hai commune Le Chi Tho Village 5, Cam Hai commune Nguyen Minh Tien Zone 8, Mong Duong ward Affected on land Vu Viet Vinh Zone 8, Mong Duong ward Affected on land Nguyen Thi Lien Zone 8, Mong Duong ward Affected on land Dao Van Quang Zone 8, Mong Duong ward Affected on land Bui Van Dung Zone 8, Mong Duong ward Affected on land Tran Thi Riem Zone 8, Mong Duong ward Affected on land Pham Van Tan Zone 8, Mong Duong ward Affected on land Khong Van Quyet Zone 1, Mong Duong ward Structure 16

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