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The Kunming-Haiphong Transport Corridor – Noi Bai-Lao Cai Highway Project

Road links, people's lives

By Abby Don   
08:31' AM - Thursday, 06/01/2011
Road links, people's lives
The Kunming-Haiphong Transport Corridor – Noi Bai-Lao Cai Highway Project
By Abby Don*

Construction of the Kunming-Haiphong Transport Corridor-Noi Bai Lao Cai Highway Project, Phu Tho Province, Vietnam. Photo by Tum Nyro/ForumPHU THO PROVINCE, VIETNAM, 5 Jan 11 – One of the largest finance packages extended by the Asian Development Bank (ADB) to Vietnam (and one of the country’s highest priority infrastructure investments), the highway project will support the country’s “poverty reduction program through enhanced economic growth and provide access for currently isolated communities to economic and social services.” The project will also strengthen connectivity with neighboring countries: China to the north, Laos to the west, and Cambodia to the south-west, and “facilitate rapid expansion of cross-border trade and commerce.”

With a projected cost of US$1.2 billion, the 264-km stretch Lao Cai-Hanoi highway project will connect the northwest region, specifically the provinces of Lao Cai, Yen Bai, Phu Tho and Vinh Phuc with the booming economic centers that have developed around Hanoi. Under the assistance from other financing agencies, the section of the highway from Noi Bai to Hanoi and Haiphong has been improved. The road upgrading of the Noi Bai-Lao Cai section will complete the Kunming-Haiphong Transport Corridor.

Construction of the Kunming-Haiphong Transport Corridor-Noi Bai Lao Cai Highway Project, Phu Tho Province, Vietnam. Photo by Tum Nyro/ForumThe road project is a large-scale infrastructure project “involving substantial investment and social and environmental impacts – requires detailed economic and financial analyses, and safeguard arrangements.” The project necessitates acquisition of residential and agricultural lands, large excavations and resettlement of project-affected people.

A representative from the Vietnam Expressway Corporation (VEC), a state-owned enterprise under the Ministry of Transport (MOT), said that more than 25,000 households in the provinces of Vinh Phuc, Phu Tho, and Yen Bai must be relocated, and that the resettlement cost is an estimated US$100 million.

In Phu Tho province, 85 kilometers from Hanoi, more than 8,000 households will be affected, in fact, resettlement in some areas is already underway. In Phu Ninh district, 96 households are affected. Thuoc (not her real name) lives in village 2, Phu Ninh commune had to give up three hectares of their ricefield, including their home, to give way to the road project. In exchange, her family received VND30,000 per square meter or around VND900 million. Six months ago, they moved to their new 400-square meter new house. The other 400-square meter house belongs to her father. She said, "the condition of the new land is not good unlike our old land.” Her family did not go to the resettlement site because “it is not ready for people to move in and live. The electricity and water systems are not good.”

Construction of the Kunming-Haiphong Transport Corridor-Noi Bai Lao Cai Highway Project, Phu Tho Province, Vietnam. Photo by Tum Nyro/ForumSeveral others raised their concern about compensation, resettlement and livelihood restoration. In one village, two out the 18 families have yet to receive their compensation. In another commune, the families do not agree with the compensation package. The cost to build their new houses was more than the amount given to them.

“The form of support is appreciated, but it has to be suitable and commensurate to the needs of the people,” they said. Others expressed the worth of their old homes in non-material terms. “Our houses are homes of our forefathers. Our land, including the trees and plants, are part of our lives and identities.”

Another village in the Phu Ninh district, village 9, has been home to Quan (not her real name) for more than four decades. She had to give up 0.4 hectare (or 25%) of her 1.6-hectare ricefield. As compensation, she was given VND12 million. “Before, my family earns VND10 million for two harvest seasons. Now, it’s only VND5 million.” Quan added that 50% of the family income comes from the ricefield, aside from selling vegetables and fruits which completes the other half of their source of income. How do they manage now given the budget deficit? Quan responded, “my husband and daughter have to work to augment our income. They both work in a nearby industrial company.”

When asked about how she finds the road project, with surprising optimism Quan said, “the government tells us it is good project and that it will bring good for the development of the country’s economy and bring social benefits to the people. I lost a portion of my ricefield. It is difficult, but the situation is even more difficult to those who lost their homes. I feel for them.”

Chinh (not his real name), one of the village heads also shared the same sentiment. "I know about the project and that it is good for the economy. I know that it is a foreign-funded projects and VEC is also part of it. It was presented to the district and meeting in the commune-level.” Chinh added, “the road project will make transportation much easier, but the village people should be protected from the project. The loss of their lands, ricefields and homes should be addressed by the authorities.”

*Abby Don is the research and publications coordinator of the NGO Forum on ADB.
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