Lao Cai City (Vietnam)

The development objective of the Medium Cities Development Project is to promote sustainable urban development in the three medium sized cities of Lao Cai, Vinh, and Phu Ly through an integrated package of priority infrastructure investments based on a clear strategic vision for each city's development. Negative impacts include: permanent loss of agriculture land, loss of residential land, house/structures and graves, loss of standing crops and trees, loss of income and business/productive assets, and loss of community assets. Mitigation measures include: 1) land for land compensation is prioritized, and if land is not available or per Displaced Persons (DP's) request cash compensation for crops and trees at market replacement prices; 2) cash compensation for crops and trees at market price; 3) compensation for affected structures at replacement cost; 4) cash compensation for entire residential land at full replacement cost, plus additional cost for basic infrastructure development; 5) DPs are entitled to compensation for affected crops in cast at replacement value; and 6) licensed business and production households whose income is affected will be compensated or supported for losses in business equivalent to 50 percent of their actual annual income