PEOPLE’S REPUBLIC OF CHINA LIAONING PROVINCIAL GOVERNMENT THE WORLD BANK

RP398

Public Disclosure Authorized V.2 Public Disclosure Authorized

LIAONING MEDIUM CITIES URBAN INFRASTRUCTURE PROJECT Public Disclosure Authorized URBAN ENVIRONMENT COMPONENT

DESIGN REVIEW AND ADVISORY SERVICES RESETTLEMENT ACTION PLAN EXECUTIVE SUMMARY REPORT Public Disclosure Authorized

DECEMBER 2006 No. 1350185

PEOPLE’S REPUBLIC OF CHINA LIAONING PROVINCIAL GOVERNMENT THE WORLD BANK PEOPLE’S REPUBLIC OF CHINA LIAONING PROVINCIAL GOVERNMENT THE WORLD BANK

LIAONING MEDIUM CITIES (LMC-2)

URBAN INFRASTRUCTURE ENVIRONMENTAL PROJECT -

DESIGN REVIEW & ADVISORY SERVICES RESETTLEMENT ACTION PLAN EXECUTIVE SUMMARY REPORT

This document has been produced by the Consortium SOGREAH Consultants as part of the FASEP Grant (French Government Grant) to Liaoning Provincial Government (Job Number 1350185) This document has been prepared by the project team under the supervision of the Project Director following Quality Assurance Procedures of SOGREAH in compliance with ISO9001.

APPROVED BY INDEX PURPOSE OF MODIFICATION DATE AUTHOR CHECKED BY (PROJECT MANAGER)

A First Issue 31/12/2005 CSJ MJP GDM

INDEX DISTRIBUTION LIST CONTACT ADDRESS

LUCRPO (Liu Jinxing, Zhao Wei, Liu [email protected], 1 Dong) [email protected]

[email protected] 2 DGTPE/ME [email protected]

3 The World Bank (Mr. Greg Browder) [email protected]

SOGREAH (Head Office, SOGREAH [email protected] 4 China) [email protected] LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE OF CONTENTS

1 INTRODUCTION TO THE ENVIRONMENT COMPONENT ...... 6

1.1 KEY OBJECTIVES OF THE PROJECT ...... 6 1.2 LMC-2 ENVIRONMENT COMPONENT SUB-PROJECTS...... 7 1.3 RESETTLEMENT MITIGATION MEASURES ...... 13 1.4 DUE DILIGENCE ISSUES...... 13

2 PROJECT IMPACTS...... 16

2.1 AFFECTED PROPERTY AND PERSONS ...... 16 2.1.1 Permanent Land Acquisition ...... 17 2.1.2 Temporary Collective Land Acquisition ...... 17 2.1.3 House Demolition ...... 18 2.1.4 Ground attachment...... 18 2.2 SOCIAL ECONOMIC BACKGROUND OF PROJECT AREAS ...... 21 2.3 ETHNIC MINORITIES IN PROJECT AREAS...... 22

3 POLICY OBJECTIVES AND LEGAL FRAMEWORK...... 24

4 COMPENSATION ...... 27

4.1 COMPENSATION STANDARD OF RURAL COLLECTIVE LAND ACQUISITION ...... 27 4.2 COMPENSATION OF PERMANENT STATE-OWNED LAND ...... 31 4.3 COMPENSATION STANDARD OF TEMPORARY LAND ACQUISITION...... 31 4.4 HOUSE DEMOLITION ...... 32 4.5 COMPENSATION STANDARD OF AFFECTED INFRASTRUCTURE AND GROUND ATTACHMENT ...... 33 4.6 ENTITLEMENT MATRIX...... 35

5 REHABILITATION MEASURES FOR LIVELIHOODS OF DPS ...... 39

5.1 COMPENSATION AND RESETTLEMENT OF PERMANENT LAND ACQUISITION...... 39 5.2 COMPENSATION AND RESETTLEMENT OF TEMPORARY LAND ACQUISITION...... 45 5.3 RURAL HOUSE DEMOLITION, COMPENSATION AND RESETTLEMENT...... 45 5.4 AFFECTED INFRASTRUCTURE AND GROUND ATTACHMENT...... 46

6 ORGANIZATION AND IMPLEMENTATION ARRANGEMENTS...... 47

6.1 ORGANIZATION...... 47 6.2 ORGANIZATION STRUCTURE...... 48 6.3 IMPLEMENTATION TIMETABLE ...... 48

7 BUDGET AND FUNDING ARRANGEMENTS...... 51

7.1 BUDGET...... 51 7.2 CAPITAL SOURCES AND ALLOCATION...... 53

8 PUBLIC PARTICIPATION, CONSULTATION AND GRIEVANCE...... 54

SOGREAH – 1350185 PAGE I JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT 8.1 PUBLIC PARTICIPATION ...... 54 8.2 GRIEVANCES...... 58

9 MONITORING AND EVALUATION ARRANGEMENT ...... 59

SOGREAH – 1350185 PAGE II JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

LIST OF TABLES

TABLE 1-1: LMC-2 PROJECT COMPONENTS...... 10 TABLE 1-2: SUB-PROJECTS WITHOUT LAND ACQUISITION AND DEMOLITION...... 12 TABLE 1-3: LINKAGE ISSUES REVIEW ...... 13 TABLE 2-1: PROJECT AFFECTED PERSONS...... 16 TABLE 2-2: PERMANENT LAND ACQUISITION ...... 19 TABLE 2-3: TEMPORARY COLLECTIVE LAND ACQUISITION OF SUB-PROJECTS ...... 20 TABLE 2-4: ETHNIC MINORITY DISTRIBUTION IN PROJECT AREAS...... 23 TABLE 4-1: ANNUAL OUTPUT VALUE STANDARD FOR LAND ACQUISITION COMPENSATION ...... 27 TABLE 4-2: LAND ACQUISITION COMPENSATION MULTIPLE AND STANDARD ...... 29 TABLE 4-3: LAND ACQUISITION TAX ...... 30 TABLE 4-4: COMPENSATION STANDARD OF TEMPORARY COLLECTIVE LAND ACQUISITION...... 31 TABLE 4-5: COMPENSATION STANDARD OF AFFECTED INFRASTRUCTURES AND ATTACHMENTS...... 33 TABLE 4-6: ENTITLEMENT MATRIX ...... 36 TABLE 5-1: LAND ACQUISITION AFFECTED VILLAGES ANALYSIS ...... 41 TABLE 5-2: LAND ACQUISITION AFFECTED HOUSEHOLD ANALYSIS ...... 42 TABLE 5-3: REHABILITATION MEASURES OF LAND ACQUISITION...... 43 TABLE 6-1: RESETTLEMENT INSTITUTIONS FOR LMC-2...... 47 TABLE 6-2: SCHEDULE OF LAND ACQUISITION & DEMOLITION AND CONSTRUCTION...... 49 TABLE 6-3: SUB-PROJECT LAND ACQUISITION AND DEMOLITION SCHEDULE ...... 50 TABLE 7-1: LMC-2 RESETTLEMENT BUDGET...... 52 TABLE 7-2: RESETTLEMENT CAPITAL SOURCES...... 53 TABLE 8-1: PUBLIC PARTICIPATION PROCEDURE ...... 55 TABLE 8-2: POLICY DISCLOSURE PROCEDURE ...... 57 TABLE 9-1: MONITORING & EVALUATION AND REPORTING SCHEDULE...... 60

SOGREAH – 1350185 PAGE III JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

FIGURES

FIGURE 1-1: LOCATION OF LMC-2 PROJECT CITIES ...... 9 FIGURE 6-1: LMC-2 RESETTLEMENT INSTITUTES ORGANIZATION STRUCTURE ...... 48

SOGREAH – 1350185 PAGE IV JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

ABBREVIATION

DP Displaced Person

EDZ Economic Development Zone

Liaoning Medium Cities (LMC-2) Urban Infrastructure LMC-2 Project

Liaoning Urban Construction and Rehabilitation Project LUCRPO Office

M&E Monitoring and Evaluation

NRCR National Research Centre for Resettlement

PMO Project Management Office

PRO Project Resettlement Office

RAP Resettlement Action Plan

WB World Bank

WTP Water Treatment Plant

WWTP Wastewater Treatment Plant

SOGREAH – 1350185 PAGE V JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Introduction to the Environment Component

1) Key Objectives of the Project

Urban infrastructure supports the economic development and the carrier of society and human habitat. With the development of the economy and society and the rapid increase of urban population, the problems of the environment, resources and infrastructure in Liaoning province is becoming more and more serious. In the opinion of the Central Committee of the Communist Party of China and State Council, implementation of the northeast old industry base revitalization strategy points to the importance of infrastructure development is an important support to northeast old industry base revitalization. It should improve water resources and utilization, promote commercialization of urban wastewater and solid waste disposal, establish some environmental protection programs for pollution treatment and integrated reuse of water. The strategic implementation of revitalization of the old northeast industrial base will promote the sustainable development of economy, society and population; resources and environment; minimize the difference between regional developments; and accelerate regional economy development. Liaoning province intends to apply funds from a World Bank loan to assist the development of urban infrastructure and comprehensive environment programs.

SOGREAH – 1350185 PAGE 6 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT 2) LMC-2 Environment Component Sub-Projects

There are 12 sub-projects under the LMC-2 Environment Project, of which 8 involve land acquisition and resettlement. Eight (8) resettlement plans are prepared according to World Bank requirements (as shown on

SOGREAH – 1350185 PAGE 7 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-1); the other 4 sub-projects do not have any land acquisition and resettlement. Land for construction includes 1) urban streets; 2) state owned land in vacancy;, see

SOGREAH – 1350185 PAGE 8 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT TABLE 0-2, so RAP is unnecessary.

FIGURE 0-1: LOCATION OF LMC-2 PROJECT CITIES

G-1: Gaizhou Wastewater Treatment Plant

SOGREAH – 1350185 PAGE 9 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-1: LMC-2 PROJECT COMPONENTS

No. sub-projects Project contents Remarks Anshan Municipality z Upgrade an existing 150,000 t/d water purifying plant Anshan Water (removal Mn/Fe) 6 mu paddy field is 1 Supply – WTP and z Construct/upgrade 122 km distribution pipeline/network taken permanently Network Upgrading z Install/upgrade the measuring meter for 65,000 RAP needed households z Construct/upgrade the existing Yuhuangshan water 3.17mu dry land is plant and Zhongyangpu water field taken permanently Haicheng Water z Construct/upgrade 74.1 km distribution and 3.2 mu collective 2 Supply Extension pipeline/network land for temporary and Upgrading z Install 25,000 water meters. acquisition; RAP needed Fushun Municipality (a)Fushun Sewerage Upgrading z Newly construct Liushan-Guchengzi Interceptors: 7,813 m z Rehabilitate Urban Sewers/Channels: upgrade 20.665 km wastewater interceptors, 8.32km open channels and 5.325km sub-sewers. (b)Fushun Integrated River Works (Eastern Part of Hun Fushun River) No land acquisition 3 Wastewater z Flood Protection Embankment: construct concrete slab and demolition Project revetment along the river bank from the east of Tianhu Bridge to the south of Zhangdang Bridge. Total length will be 8.1km. z Drainage System: construct 5.54km sewer pipelines and 2 pump stations. z Road Construction: 8.41km road from Tianhu Bridge to Zhangdang Bridge. To rules, two villages (Xiaoyanwu and Dongbao of Wudao z solid waste collection, storage and transfer to disposal village) will be moved and upgrade 14 existing old collection stations Fushun Solid to avoid environment z a sanitary landfill and associated leachate treatment / 4 Waste Expansion pollution. 238 disposal facilities, with daily capacity of 600 ton/day & Upgrading households and and 17 years service life. 14187m2 rural

houses will be demolished. RAP needed Yingkou Municipality z Newly construct 100,000m3/day Eastern Wastewater nd Treatment Plant. 2 mu permanent and Yingkou 2 z Drainage and interceptor sewers in southern and 180 mu temporary 5 Wastewater eastern districts, 68035 m. land acquisition; Project z Upgrade two pump stations and newly construct 6 RAP needed pump stations z Construct a new solid water disposal plant (820 t/d) 1121.79mu Yingkou EDZ Solid permanent land 6 with collection/transfer system Waste Treatment acquisition z Close the existing solid waste dumping site RAP needed

z Construct the intake work, a 700,000 t/d purifying water plant and 31.3 km transportation pipeline 47mu permanent and Yingkou Shimen z Upgrade water distribution system: newly construct 939 mu temporary 7 reservoir Water 46.216 km and upgrade 13.351 km land acquisition; Supply Upgrading z Newly construct reclaimed water pipelines for RAP needed 65.263km.

SOGREAH – 1350185 PAGE 10 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT No. sub-projects Project contents Remarks

120.3mu state- z 50,000 ton/day WWTP in Phase I, (to be enlarged in Gaizhou Waste owned farmland 100,000 ton/day in Phase II) water treatment (cultivated land of 8 z Newly construct 3.65 Km Interceptor plant state-owned farm z Upgrade / newly construct 16.38km Sewers and attachment; z Newly construct 1 Sewerage Pump Station RAP needed

Panjin Municipality

6 mu permanent and Panjin 2nd z Upgrade 7.59 km sewage and 5 pump stations; 29.4 mu temporary 9 Wastewater z 50,000 tons/day WWTP, 11.28 km networks and 1 land acquisition Project pump stations; RAP needed

z Pipeline Upgrading: 133.5 km Water Distribution Pipeline Upgrading. z Water Loss Monitoring Equipments: Purchasing 4 sets Panjin Water of water loss Monitoring Equipments and No land acquisition 10 Supply Distribution corresponding vehicles and demolition Upgrading z Water Meters (and Meter Chambers): Install 205 bulk meters for Residential Districts; Replacement of 93,262 water meters and 6,217 underground meter chambers. 270mu useless state z Construct a new sanitary landfill plant (675 t/d) with the owned land which Panjin Solid Waste collection/transfer system belongs to company 11 disposal z Eliminate the existing waste combustion plant of Liaohe oil filed is required RAP needed Huludao (Xingcheng) z Upgrade 24682.4 m water distribution networks (DN100-1000) Xingcheng Water z Construct two boosting pump stations No land acquisition 12 Supply Distribution z Water meters system upgrading: install 2200 water and demolition Upgrading meters and 220 meter wells.

SOGREAH – 1350185 PAGE 11 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

1 TABLE 0-2: SUB-PROJECTS WITHOUT LAND ACQUISITION AND DEMOLITION

No. Project Construction land use Remarks 1) Sewage ditches without attachments are open ditches for draining sewage. the land is used for public infrastructures 2) Most of sewage pipes are laid in the middle of roads and some in the side, which will move trees and communication poles temporarily but be restored after construction. In general, average width of road is 35 m, and average digging width of pipe construction is 2 m. 3) There was earth bank. New bank is bank-road. Flood no house control slope and roads locate in the scope of former demolition, Fushun bank so it dose not involve land acquisition and only public 1 Sewerage demolition; drainage project is under the new bank and infrastructures Upgrading existing roads or changed from former ditches so no land temporary acquisition and demolition. moving 4) During survey dated September 2005, there is no crop on land between embankments. But during Bank mission visiting Fushun in June 2006, it is found that there is a little amount of crop on land between embankments. If there is crop to be affected during implementation, compensation will be identified based on resettlement policy framework ( RPF) and compensation for one season of crop will be paid. Distribution pipe will be laid under vacancy land in 32 Panjin Water residential blocks. Average digging width is 22 m without land Supply acquisition, house demolition and affected person. But no land 2 Distribution construction of pipe may affect pedestrian lane, greening belt acquisition or Upgrading and power pole etc. Cost for reconstruction and rehabilitation demolition for this kind of impacts and road will be listed in engineering cost. Panjin Solid 3) The landfill site is located at waste land which originally No affected Waste disposal was a living basis of no.6 branch of the second drilling person, company under Liaohe Oil Field. Total area of the land is 270 mu. 4) Liaohe Oil Field obtained the land in 1980’s and given it to no.6 branch of the second drilling company as living basis. At present, wasted structures in the land include school, shops, first aide service, workshop supplying water for the 3 whole basis, kid garden and 25 residential building. 5) The living basis was moved to Huanxiling oil area in 2000 according to production necessity. All staffs also moved to Huanxiling area and Xinglongtai district. 6) The living basis has been wasted and Liaohe Oil Field has no plan for use of the land. So no person is affected by the project. Compensation for the living basis will be identified by negotiation between Liaohe Oil Field and Panjin Government and will be listed in the engineering cost.

1The four subprojects land acquisition and resettlement analysis were also presented, furthermore, in case land acquisition and resettlement to be happened in the stage of implementation, compensation and restoration actions will be identified based on resettlement policy framework (RPF).

SOGREAH – 1350185 PAGE 12 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT No. Project Construction land use Remarks 1) Upgrading former pump stations 2) Water meters upgrading undertakes in sub-districts. 3) Pipes are laid under pedestrian lane of road. The Xingcheng affected roads include east Yanhe road, Nanyan street, no land Water Supply 4 Sijia road, Binhai road and Hongshi road. But acquisition or Distribution construction of pipe may affect pedestrian lane, greening demolition Upgrading belt and power pole etc. Cost for reconstruction and rehabilitation for this kind of impacts will be listed in engineering cost.

7) Resettlement Mitigation Measures

During project planning and design, the socio-economic impact on local areas has been considered, and where feasible, alternative project designs have been adopted. Where it is not possible to avoid land acquisition, wasteland, shoal and state-owned land has been used to minimize cultivated land acquisition. Where it is not feasible to avoid demolition, the scale has been minimized2.

The Design Institute have analyzed the pipe route so that water supply and wastewater pipelines will be laid within road reserves to avoid house demolition. The sites for solid waste landfill have sufficient earth resource as cover material, or suitable borrow areas are available (not cultivated land).

8) Due Diligence Issues

Linkage projects refer to those projects that have direct relationships with project construction function or benefits during project preparation and implementation. Local Project Management offices and sub-project agencies have analyzed all sub- projects and found LMC-2 does not involving due diligence issues (see below).

TABLE 0-3: LINKAGE ISSUES REVIEW

No. Sub-projects Linkage sub-projects review conclusion No new water plant after this project to increase water supply capacity. Upgraded water distribution system Anshan Water can satisfy the water supply of Jiancheng district. Future Supply – WTP urban areas will be served by other systems 1 (groundwater wells and separate networks), that will not No linkage projects and Network normally feed into LMC-2 project components. There is Upgrading no construction of parallel project relating to the project, and the project to be built can provide function independently. Haicheng After LMC-2, water supply capacity will be same with 2 Water Supply existing system and separate new systems will be No linkage projects Extension and developed to the south and west of the city. There is no

2 Under LMC-2 environment component, only three (3) simple guardhouses will be demolished.

SOGREAH – 1350185 PAGE 13 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT No. Sub-projects Linkage sub-projects review conclusion Upgrading construction of parallel project relating to the project, and the project to be built can provide function independently. The sewer capacities are designed to serve existing developed areas of the city, so future wastewater flows will not increase significantly. All additional flows will be treated at the Sanbaotun WWTP and not need extra Fushun WWT capacity increase. The IRW component on the 3 Sewerage south bank (under LMC-2) is the final investment for the No linkage projects Upgrading city riverfront improvement program. There is no potential for future extension of the proposed initiative. There is no construction of parallel project relating to the project, and the project to be built can provide function independently. This project can serve 20 years for Fushun solid waste Fushun Solid disposal but future site for landfill will inevitably be Waste 4 required after 20 year life of LMC-2. There is no No linkage projects Expansion & construction of parallel project relating to the project, and Upgrading the project to be built can provide function independently. The project constructs WWT and sewage facilities in the western city and future development in the western part Yingkou 2nd of the city will connect to the system. The plant and 5 Wastewater system was designed to handle the future flows. There is No linkage projects Project no construction of parallel project relating to the project, and the project to be built can provide function independently. Project can satisfy the solid waste treatment requirement of EDZ in20 years. Remediation of existing open landfill Yingkou EDZ will result in improved urban environment and removal 6 Solid Waste No linkage projects and treatment of leachate. There is no construction of Treatment parallel project relating to the project, and the project to be built can provide function independently. The proposed transmission / distribution system capacity Yingkou Water matches the plant capacity. New separate systems will 7 Supply be developed for future city development. There is no No linkage projects Upgrading construction of parallel project relating to the project, and the project to be built can provide function independently. All wastewater from urban and suburb area of Gaizhou Gaizhou Urban will be collected and treated through construction of the Wastewater project. Future wastewater flow has been considered in 8 No linkage projects Treatment the project. There is no construction of parallel project Project relating to the project, and the project to be built can provide function independently. Future development in the eastern part of the city will Panjin 2nd connect to the existing WWTP, and was designed to 9 Wastewater handle the future flows. There is no construction of No linkage projects Project parallel project relating to the project, and the project to be built can provide function independently.

This project can serve 10 years for Panjing solid waste Panjin solid disposal. There is no construction of parallel project 10 waste disposal No linkage projects relating to the project, and the project to be built can project provide function independently.

Panjin Water No increased supply capacity proposed under LMC-2. 11 Supply Separate new systems will be developed to city No linkage projects Distribution development. There is no construction of parallel project

SOGREAH – 1350185 PAGE 14 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT No. Sub-projects Linkage sub-projects review conclusion Upgrading relating to the project, and the project to be built can provide function independently. No increased supply capacity proposed under LMC-2. Xingcheng Separate new systems will be developed to city Water Supply 12 development. There is no construction of parallel project No linkage projects Distribution relating to the project, and the project to be built can Upgrading provide function independently.

SOGREAH – 1350185 PAGE 15 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Project Impacts

In order to prepare the resettlement plans, each municipality/city organized personnel in August and September 2005 to investigate requirements for land acquisition, temporary land, ground attachment and demolished houses. The Resettlement Plan was finalized in September 2005 based on World Bank requirements and procedures. During these investigations, affected persons took part. The investigation teams listened to the views of residents and enterprises relating to land acquisition and demolition, handed out questionnaires, and consulted with them. For the Yingkou wastewater treatment plant, information was announced to the public through newspapers, and the resulting views and opinions were taken into consideration.

9) Affected Property and Persons

Project land acquisition and demolition affects 5 municipalities, 8 districts (counties /towns) and 23 villages. Permanent land acquisition is 1,680.26 mu, including 1,259.96 mu collective land (including 481.96 mu collective cultivated land) and 420.3 mu state-owned land (including 120 state-owned cultivated land); temporary collective land acquisition is 1,091.6 mu. Demolished house area was 14,347 m2. Main impacts are permanent land acquisition, temporary land acquisition, house demolition, infrastructure, and ground attachments. The project affects 5,853 persons, including permanent land acquisition affecting 395 persons (including 273 labours), temporarily affecting 4,726 persons and house demolition 732. No vulnerable group is affected by project. The project affected population is given in TABLE 0-1.

TABLE 0-1: PROJECT AFFECTED PERSONS

Housing Rural collective Temporary Sub-project demolition land land Total acquisition acquisition Anshan Water Supply – WTP and 0 6 6 Network Upgrading Haicheng Water Supply Extension and 0 34 44 78 Upgrading Fushun Solid Waste Expansion & 732( Including Upgrading 24 persons who affected by land 0 0 742 acquisition as well) Panjin 2nd Wastewater Project 0 13 18 31 Yingkou 2nd Wastewater Project 0 6 80 86 Yingkou Water Supply Upgrading 0 3 4,584 4,587

SOGREAH – 1350185 PAGE 16 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT Housing Rural collective Temporary Sub-project demolition land land Total acquisition acquisition Yingkou EDZ Solid Waste Treatment 0 261 0 261 Gaizhou Urban Wastewater Treatment 0 72 0 72 Project Total 732 395 4,726 5,853 Note: the affected persons of the guard houses are counted in land acquisition affected population

10) Permanent Land Acquisition

Under LMC-2, Eight (8) sub-projects3 involve permanent land acquisition:

‹ Anshan Water Supply – WTP and Network Upgrading; ‹ Haicheng Water Supply Extension and Upgrading; ‹ Fushun Solid Waste Expansion & Upgrading; ‹ Panjin 2nd Wastewater Project; ‹ Yingkou 2nd Wastewater Project; ‹ Yingkou Shimen Reservoir Water Supply Upgrading; and ‹ Xingcheng Solid Waste Treatment Project. ‹ Gaizhou Urban Wastewater Treatment Project

Project permanent land acquisition affects the following 11 villages: Liujiazi village, Shagangtai village, Dayu village, Gujia village, Chenggezi village, Jiatun village, Gaolicheng village, Tuotaipu village, Shagangtai village, Xiaoyanwu village and Xihai state Farm. The primary effects are land acquisition and ground attachments. Besides, Permanent land acquisition is 1,680.26 mu, including 420.3 mu state-owned land (including 120 state-owned cultivated land) and 1,259.96 mu collective land (including 481.96 collective cultivated land) and direct affected population is 395 including 273 labours. Detailed land acquisition of each project is given in Table 2-3.

11) Temporary Collective Land Acquisition

The following four (4) sub-projects involve temporary collective land acquisition:

‹ Haicheng Water Supply Extension and Upgrading; ‹ Panjin 2nd Wastewater Project; ‹ Yingkou 2nd Wastewater Project; ‹ Yingkou Water Supply Upgrading.

The total temporary collective land is 1,091.6 mu, of which most is cultivated land. The period for acquiring land is at least three months, but normally does not exceed 12 months. Project temporary collective land acquisition affects 22 villages: Santaizi, Qiantang, Houtang, Chengzi, Dayu, Weijia, Gujia, Gaojia,

3 Since preparation of this RAP, the Xingcheng Solid Waste Project has been cancelled.

SOGREAH – 1350185 PAGE 17 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT Chengzi, Shimenxi, Quanyangou, Bangshibao, Malianyu, Luosuizhai, Gaotun, Meicun, Daqianmaling, Shentun, Xigao, Jiatun, Gaolicheng and Feiyunzhai affecting 4,726 people. Project construction includes water supply pipelines and sewer pipelines, which will occupy state-owned land temporarily without affecting people and resettlement directly apart from temporary access constraints. All expense for the above is listed in the construction costs and are therefore not included in the project resettlement plan. Temporary land acquisition for each sub-project is given in TABLE 0-4.

12) House Demolition

There are three simple guard houses to be demolished for the solid waste landfill site in Yingkou Economic Development Zone with total area of 60m2. These three simple guard houses are used for looking after orchards, not for permanent living. Affected population has been included in land acquisition impact.

Xiaoyanwu village and Dongbao of Wudao village should be moved to avoid environment pollution by Fushun solid waste disposal plant extension. 238 households and 732 villagers were affected and 14187m2 rural houses were demolished.

In addition, Gaizhou Urban Wastewater Treatment Project involves demolition of 50 m2 assembled house and 50 m2 brick-wood house. And those DPs by the demolition have been included in land acquisition impact.

TABLE 2-2 HOUSE DEMOLITION INVOLVED IN THE PROJECT

Rural Living Agricultural Sub-Project Total House House Fushun Solid Waste Expansion & Upgradingà 14187 0 14187 Yingkou EDZ Solid Waste Treatmentà 0 60 60 Gaizhou Urban Wastewater Treatment Projectà 0 100 100 Totalà 14187 160 14347

13) Ground attachment

The project affects the following 18 types of ground attachments and public infrastructure: trees, grape vines, stone dam, vegetable sheds, guard houses, tombs, warehouse, attached house, fence, simple toilet, hog pen, vegetable vault, hand pump well without electric pump, sunk well, poultry house, livestock pens, household electricity( electricity meter, power leakage device and electricity meter case ) and brick floor surface.

SOGREAH – 1350185 PAGE 18 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-3: PERMANENT LAND ACQUISITION

Collective Land (mu) State Affected Sub-project Woodlands Sub- land Total Remarks Paddy field Dryland Orchard Wasteland Population (hill land) Total (mu) Anshan Water Supply – Liujiazi village of WTP and Network 6 6 6 6 Shoushan Town, Upgrading Liuyang county Haicheng Water Supply Santaizi and Dayu 3.17 3.17 3.17 34 Extension and Upgrading villages 24 affected persons are included in to the Fushun Solid Waste 33 41 74 74 persons who affected by Expansion & Upgrading house demolition Xiaoyanwu village Panjin 2nd Wastewater Gujia village of 6 6 150 156 13 Project Shuangsheng street Yingkou 2nd Wastewater Chengzi village of 2 2 150 152 6 Project Lunan Town Jiatun village of Yingkou Water Supply Tuandian Town and 47 47 47 3 Upgrading Gaolicheng , village of Qingshiling Town Tuotaipu and Yingkou EDZ Solid Waste 26.79 405 690 1121.79 1121.79 261 Shagangtai villages Gaizhou Urban Wastewater Xihai state Farm and 120.3 120.3 72 Treatment Project Hongfa coal trade shop Total 14 62.96 405 41 737 1259.96 420.3 1680.26 395

SOGREAH – 1350185 PAGE 19 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-4: TEMPORARY COLLECTIVE LAND ACQUISITION OF SUB-PROJECTS

Collective land (mu) Vegetable Direct Affected Sub-project Remarks Paddy field Dryland Land Woodland Waste land Total Population (garden) Haicheng Water Supply 2.7 0.5 3.2 44 Santaizi and Dayu villages Extension and Upgrading Panjin 2nd Wastewater Weijia village, Gujia village, 3.9 25.5 29.4 18 Project Gaojia village Qiangtan, Houtang and Chengzi Yingkou 2nd Wastewater 120 120 80 villages of Lubian Town and Project Lunan Town Yingkou Water Supply 939 939 4,584 14 villages affected Upgrading Total 123.9 939 2.7 0.5 25.5 1091.6 4,726

SOGREAH – 1350185 PAGE 20 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT 14) Social Economic Background of Project Areas

The project affected areas include Panjin city, Gujia village, Anshan city and Liujiazi village of Shoushan town of Liaoyang county, Haicheng city and Santaizi village of this economic development zone and Dayu village of Dongsi town, Yingkou city and Lunan Bangshibao, Gaotun, Tuandian and Qingshiling towns; Tuotaipu village and Shagangtai village of Lutun town, Yingkou economic development zone; Sandaobian village of Hongyazi Town and Qingshui village of Baitang Towns of Xingcheng city.

Panjin municipality is located in the southwest of Liaoning and is an important petroleum and chemical industry base. The whole municipal area is 4,071 km2. By the end of 2003, the central urban area is 26 km2. And the constructed area is 52 km2. The existing population is 1.2million with an urban population of 566,000. The urban population density is 2,128 persons/km2. GDP in 2004 was RMB36.87 billion, of which primary industry was RMB4.11 billion, secondary RMB22.86 billion and tertiary industry RMB7.6 billion. In 2004, the urban residential income was RMB 9,509 per annual and the rural farmer income was RMB4,630.

Anshan municipality is located in the middle of Liaoning province and has an important steel and iron industry base; it is called “Steel City”. It governs Haicheng County-level city, two counties (Tai’an and Youyan), and four districts (Tiedong, Tiexi, Lishan and Qianshan). Anshan is 19 km long from south to north and 7 km long from east to west. The urban area is 131 km2. By the end of 2004 the urban population of Anshan was 1.46million (administration area population 3.47million).

Fushu municipality is located in the east mountain area of Liaoning province. The city is 6-8 km wide from south to north and 36km long from east to west. The total urban and rural area is 10,816 km2 and city area is 674.8km2. the area of Jiancheng District is 115.31 km2. Fushun administrates three counties and four districts. The whole registered population is 2.255 million and urban population is 1.415 million. City population density is 1977 person/km2 . The total production value in 2004 was RMB 37.5 billion , the primary industry added value was RMB2.8billion, industry added value was RMB22.5billion and the tertiary industry was RMB12.2billaion The income of urban residents in 2004 was RMB7008. The net income of farmers was RMB 3580.

Haicheng county-level city is in the south of Anshan municipal area and has a population of 334,000. It is a county-level city of Anshan municipality with the constructed area of 28 km2. In 2003, the GDP of Anshan municipality was RMB

SOGREAH – 1350185 PAGE 21 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT 20.5 billion. The primary industry was RMB 2.3 billion, secondary industry was RMB 10.7 billion and tertiary industry was RMB 7.5 billion.

Yingkou municipality is in the southwest of Liaoning province close to Bohai Sea. It has paper making, textile, light industry and machinery as the leading industries. The Yingkou port is the most important for northeast China. At present, the total municipal population is 2.3million with 701,000 in the central urban area. In 2004, GDP was RMB 31.8 billion, of which primary industry was RMB 3.7 billion, secondary industry was RMB 17 billion and tertiary industry was 11.1 billion. The annual average income of urban residents was RMB 8,128 and rural farmer was RMB 3,868.

Yingkou Economic Development Zone lies in the centre of the Liaotung peninsula and is governed by Yingkou municipality. It is a comprehensive newly developed city with harbor, industry, trade and tourism. This harbour serves northeast Asia with bulk cargo, containers and carrying trade, bonded warehouses, and processing facilities. The EDZ area is 268 km2 including Bayuquan district, Xiongyue town, Hongqi town and Lutun town. In 2005, the urban population was 335,000.

Xingcheng municipality is located in the southwest of Liaoning province, in the middle of Liaoxi Corridor and also is a county-level city under Huludao municipality. Xingcheng is a national tourist centre and an important place connecting north China and abroad. Xingcheng governs five sub-district agencies, five towns and 20 townships. The total area is 2,148km2 and the population of the administration area is 546,600 including 150,000 in the urban area. GDP in 2004 was RMB 4.1 billion and the average farmer’s income was RMB 2,962.

Gaizhou county level city under Yingkou Municipality is located in the northeast of Liaodong peninsula, and in east of Liao River Delta. There are 14.9 km2 built area and 184 thousand populations in Gaizhou. Industry, agriculture, forest, herd and aquiculture have been developing rapidly in Gaizhou since 1992, also industry became leading economy. Total GDP in 2004 is 3.5 billion Yuan, increasing percentage on the primary, the secondary and the tertiary industry respectively is 34.4%, 38.1% and 27.5%. Recently average increase ratio of GDP in a year in Gaizhou is 16.6%

15) Ethnic Minorities in Project Areas

Liaoning is a province with many nationalities. There are 51 ethnic minorities including Hans, such as Man Zu, Mongols, Hu Zu, Korean and Xibo Zu. There

SOGREAH – 1350185 PAGE 22 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT are 6.7 million minority group people accounting for 16% of the total population in Liaoning province. There are eight Ethnic Autonomous Counties: Buxin, Kezuo Mongolian Autonomous County, Xinbin, Youyan, Qingyuan, Benxi, Hengren and Kuandian Man Zu Autonomous County. The total population is 3.33 million and accounts for 8% of whole province population. The area of the ethnic autonomous county is 34,000 km2 (23% of whole province area). There are two county level cities (Fengcheng and Beining) that are Ethnic Autonomous Counties. The ethnic minority counties, whose population accounts for over 40% of the local population, are Xingcheng, Suizhong, Yixian, Kaiyuan and Xifeng; the others are scattered. In the municipalities of Anshan, Fushun, Yingkou, Panjin and Huludao (Xingcheng), minorities are not living together so LMC-2 does not concern ethnic minority communities.

TABLE 0-4: ETHNIC MINORITY DISTRIBUTION IN PROJECT AREAS

Characteristics Percentage Sub-project Population Minority Population (Concentrated/Not (%) concentrated) Anshan 1,460,000 56,000 4% Not concentrated (CUA) Fushun 2,255,000 129,000 6% Not concentrated (CUA) Yingkou 2,297,000 180,000 8% Not concentrated (CUA) 30,800 Panjin 1,244,000 2% Not concentrated (CUA)

Total 7,256,000 395,800 CUA—central urban area

SOGREAH – 1350185 PAGE 23 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Policy Objectives and Legal Framework

In order to accomplish the task of land acquisition and demolition caused by LMC-2 and guarantee the legal rights of affected persons and enterprises and to support project implementation, project policy is prepared according to the following land acquisition and demolition regulations:

‹People’s Republic of China ‹Liaoning Province ‹Anshan municipality ‹Fushun municipality ‹Panjin municipality ‹Yingkou municipality ‹Tieling municipality ‹Huludao municipality, and ‹World Bank OP4.12 Involuntary Resettlement

The main legal framework comprises:

National Laws and Regulations

¾ Land Administration Law of the People's Republic of China (adopted on 28 August 2004) ;

¾ Regulations for the Implementation of the Land Administration Law of the People's Republic of China (adopted on 28 August 2004) ;

¾ Guiding Opinions on Improving the System of Land Acquisition, Compensation and Resettlement (adopted on 3 November 2004 ) .

Local Regulations and Policies

¾ Measures of Liaoning Province on implementing the Land Administration Law of the People's Republic of China (adopted on 1 April 2002) ,

¾ Circular of Liaoning provincial government on land acquisition and compensation task and farmer’s legal rights protection( No. 27, 2004); and

¾ Measures of Liaoning Province on Implementation of Farmland Occupation Tax.

World Bank Policy

¾ World Bank operational policies OP4.12 Involuntary Resettlement and its Annex (adopted on 1 January 2002);

SOGREAH – 1350185 PAGE 24 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT ¾ World Bank operational procedures BP4.12 Involuntary resettlement and its Annex (adopted on 1 January 2002) .

The objective of project resettlement policy is to minimize the adverse affects brought by land acquisition and demolishment. Displaced persons4 will be provided compensation at full replacement cost5 for loss of assets and assisted to restore or even surpass former living standards. Main policies are as follows:

¾ When possible, resettlement plans should be conceived as development opportunities, so that those affected may benefit from project activities.

¾ Lack of legal rights does not bar displaced persons in peaceful possession from compensation or alternative forms of assistance.

¾ Compensation rates refer to amounts to be paid in full to the individual or collective owner of the lost asset, without deduction for any purpose. Also Individual owners receive compensation for affected structures and other fixed assets, and villages receive compensation for acquired land in rural areas.

4 “Displaced persons” refers to all the people who, on account of the activities listed above, would have their (1) standard of living adversely affected ; or (2)right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed temporarily or permanently; (3) access to productive assets adversely affected, temporarily or permanently; or (4)business, occupation, work or place of residence or habitat adversely affected; and “displaced person” means any of the displaced persons.

5 "Replacement cost" is defined as follows: For agricultural land, it is the pre-project or pre- displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. For land in urban areas, it is the pre- displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labor and contractors' fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Such additional assistance is distinct from resettlement measures to be provided under other clauses in OP 4.12, para. 6.

SOGREAH – 1350185 PAGE 25 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT ¾ When cultivated land is acquired, it often is preferable to arrange for land- for-land replacement through collective land redistribution. In some cases, as when only small proportions of income are earned through agriculture, alternative measures such as payment of cash or provision of employment are acceptable if preferred by the persons losing agricultural land.

¾ Replacement houseplots, sites for relocating businesses, or redistributed agricultural land should be of equivalent use value to the land that was lost.

¾ Transition periods should be minimized. Compensation should be paid prior to the time of impact, so that new houses can be constructed, fixed assets can be removed or replaced, and other necessary measures can be undertaken before displacement begins.

¾ Displaced persons are consulted during the planning process, so their preferences regarding resettlement arrangements are considered; resettlement plans are disclosed in a publicly accessible manner.

¾ The previous level of community infrastructure and services and access to resources will be maintained or improved after resettlement.

¾ The borrower is responsible for meeting costs associated with land acquisition and resettlement, including contingencies.

¾ Resettlement plans include adequate institutional arrangements to ensure effective implementation of resettlement measures.

¾ Resettlement plans include arrangements for internal and external monitoring of resettlement implementation.

¾ Resettlement plans include procedures by which displaced persons can pursue grievances.

SOGREAH – 1350185 PAGE 26 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Compensation

The LMC-2 compensation standard is decided according to above legal framework and actual conditions in the affected municipalities. The time of displaced persons eligibility definition is the announcement date of demolition. After this date, displaced persons can not build new houses, expand and rebuild houses, can not change the use purpose of land and house and can not rent land or rent and sale or buy houses. The people influx after this certain date is not regarded as eligible displaced persons.

16) Compensation Standard of Rural Collective Land Acquisition

Based on the related policies and regulations of Liaoning province and the participating municipalities, land acquisition compensation includes land compensation, resettlement subsidy and young seed compensation, calculated as the legal annual output value multiple. Local governments should increase annual output standard of land acquired and adjust it with the development of economy. Annual output value is calculated as the local comprehensive output of crop and economy but not single crop production. In accordance with the actual situation of Liaoning, the annual output value per mu of municipalities is not less than RMB 2,000, county level cities or towns are not less than RMB 1500 and in other place not less than RMB 1,000. Economic developed areas also should increase the standard. For woodlands, grassland and other land acquisition, it should adjust the standard with the new annual output value. Land compensation, resettlement subsidy and young crop compensation are calculated as the legal annual output value multiple, as given inTABLE 0-1, TABLE 0-2 and TABLE 0-3.

TABLE 0-1: ANNUAL OUTPUT VALUE STANDARD FOR LAND ACQUISITION COMPENSATION

Sub-Project Liaoning Provincial Municipal Remarks Policy Policies Annual output value per At present, municipalities Anshan Water Supply – WTP mu: municipal cities are No of Liaoning province do and Network Upgrading not less than RMB not have draft local 2,000, county level standards according to Haicheng Water Supply cities or towns not less the provincial land No Extension and Upgrading than RMB 1,500; other acquisition and places not less than resettlement policy. They Fushun Solid Waste RMB 1,000. all report their actual No Expansion & Upgrading situation to Liaoning province.

SOGREAH – 1350185 PAGE 27 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT Sub-Project Liaoning Provincial Municipal Remarks Policy Policies province. Panjin 2nd Wastewater Project No

Yingkou 2nd Wastewater No Project

Yingkou Water Supply No Upgrading

Yingkou EDZ Solid Waste No Treatment

Gaizhou Urban Wastewater No Treatment Project

SOGREAH – 1350185 PAGE 28 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-2: LAND ACQUISITION COMPENSATION MULTIPLE AND STANDARD

Annual Multiple Compensation Standard RMB/mu Production Sub-Project Land Type Value Land Resettlement Subtota Land Resettlement Young Subtotal RMB/mu Compensation Subsidy l Compensation Subsidy Crops

Anshan Water Supply – WTP and paddy field 1,333 6 4 10 8,000 5,330 13,330 1,333 Network Upgrading Haicheng Water Supply Extension Dryland 1,000 10 6 16 10,000 6,000 16,000 1,000 and Upgrading Fushun Solid Waste Expansion & Dryland 2,000 7 6 13 14,000 12,000 26,000 2,000 Upgrading Waste land 2,000 3 0 3 6,000 0 6,000 0 Panjin 2nd Wastewater Project paddy field 2,000 15 15 30 30,000 30,000 60,000 2,000 Yingkou 2nd Wastewater Project paddy field 2,000 15 15 30 30,000 30,000 60,000 2,000 Yingkou Water Supply Upgrading Hill land 1,500 3 0 3 4,500 0 4,500 0 Orchard 1,000 10 6 16 10,000 6,000 16,000 0 Yingkou EDZ Solid Waste Hill land 1,000 6 4 10 6,000 4,000 10,000 0 Treatment Dryland 1,000 15 9 24 15,000 9,000 24,000 1,000 Gaizhou Urban Wastewater Dry land 1,500 6 4 10 9,000 6,000 15,000 1,500 Treatment Project Affected Affected Affected Receiver villages persons persons

Note: young crop compensation is not calculated in land compensation standard if young crop compensation happening depends on actual land acquisition situation.

SOGREAH – 1350185 PAGE 29 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-3: LAND ACQUISITION TAX

Fees paid for use of New Land Farmland Acquisition Land Cultivation Fee Project Land Type Land Construction Administration Fee Tax (RMB/mu) Tax (RMB/mu) (RMB/mu) (RMB/mu) (RMB/mu)

Anshan Water Supply – WTP and Paddy field 3,663 6,666 11,322 1,253 22,904 Network Upgrading Haicheng Water Supply Extension Dryland 3,663 6,666 11,322 1,199 22,850 and Upgrading Fushun Solid Waste Expansion & Dryland 4,000 6,666 18,648 1,800 31,114 Upgrading Panjin 2nd Wastewater Project Paddy field 3,663 6,666 18,648 1,399 30,376 Yingkou 2nd Wastewater Project Paddy field 3,663 6,666 18,648 1,399 30,376 Yingkou Water Supply Upgrading Hill land 9,333 1,200 10,533 Orchard - - 11,334 1,733 13,067 Yingkou EDZ Solid Waste Hill land - - 11,334 1,733 13,067 Treatment Dryland 4,000 6,666 11,334 1,733 23,733 Gaizhou Urban Wastewater Dry land 4,000 6666 0 1333 12,000 Treatment Project Receiver Finance Bureau Finance Bureau Land Bureaus Land Bureaus

SOGREAH – 1350185 PAGE 30 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT 17) Compensation of Permanent State-owned Land

The land taken by the project becomes urban infrastructure land. State-owned land can be obtained through land assignment according to national laws. Panjin state-owned land can be obtained through a paid transfer. The compensation standard for Gaizhou state-owned farms is as same as collective land acquisition.

TABLE 0.4 COMPENSATION STANDARD FOR PERMANENT STATE-OWNED LAND ACQUISITION

Amount of permanent state- Compensation Sub-projects Affected unit owned land standard (mu) Panjin 2nd Wastewater Project To be obtained 150 State owned land with no cost Yingkou 2nd Wastewater Project To be obtained 150 Zhongyan Group with no cost Gaizhou Urban Wastewater Treatment 120 Xihai Farm 15000 Yuan/mu Project Hongfa Coal To be obtained 0.3 trading shop with no cost 420.3

18) Compensation Standard of Temporary Land Acquisition

Most pipes of this project are laid under roads, in river embankment or within drainage channels so it only involves temporary state-owned land acquisition and road resurfacing. Only a part of the pipelines (water supply and drainage pipes) need to use rural collective land temporarily. The land taking period is at least three months and would not normally exceed 12 months. The compensation standard for temporary collective land acquisition is in accordance with the use and the affected period. Compensation is mainly for young crop compensation and land restoration that is implemented by project units. Detailed compensation standards are given in TABLE 0-5.

TABLE 0-5: COMPENSATION STANDARD OF TEMPORARY COLLECTIVE LAND ACQUISITION

Young Administra Total Sub-project Type crop Land Restoration tion Fee RMB/mu RMB/mu Haicheng Water Vegetable Project unit to Supply Extension 3,000 -- 3,000 land(garden) restore land and Upgrading Project unit to Woodlands 1,000 -- 1,000 restore land Panjin 2nd Project unit to Paddy field 2,000 - 2,000 Wastewater Project restore land

SOGREAH – 1350185 PAGE 31 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT Yingkou 2nd Project unit to Paddy field 2,000 -- 2,000 Wastewater Project restore land Yingkou Water Project unit to Dryland 1,500 -- 1,500 Supply Upgrading restore land

19) House Demolition

Though measure and calculation, the replacement cost of the three simple guard houses is RMB 50/m2 in Yingkou EDZ solid waste project,.

The replacement cost of assembled house is 100 Yuan/m2 and the replacement cost of brick-wood house is 200 Yuan/m2 in Gaizhou Urban Wastewater Treatment Project.

Fushun solid waste disposal plant extension project involve the move of Xiaoyanwu village and Dognbao of Wudao village. So, housing site is provided by land exchange and compensate affected villagers as house resettlement cost. Affected villagers rebuild house. The resettlement cost of house: brick- concrete structure : 700Yuan/m2, brick-wood:650 Yuan/m2. In addition, moving allowance 300 Yuan/household. If land exchange affects dryland (corn), the young crop will be compensated as 2000 Yuan/mu according to the notice of Liaonning government on to do well the land acquisition and compensation work to protect the legal rights of farmers.

TABLE 4.6 COMPENSATION FOR HOUSE DEMOLITION

Agricultural Rural house Sub-projects house Compensation standard (m2) (m2) Fushun Solid Waste Expansion & Brick-concrete: Ã Upgrading 14187 700Yuan/ m2; Brick- wood: 650/ m2 Ã 2 Yingkou EDZ Solid Waste Treatment 60(simple guard 50 Yuan/m

house) Gaizhou Urban Wastewater Treatment 50(simple à Project assemble 100 Yuan/m2 Totalà house) 50(simple brick- wood guard 200 Yuan/m2 house) Total 14187 160

SOGREAH – 1350185 PAGE 32 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT 20) Compensation Standard of Affected Infrastructure and Ground

Attachment

Compensation standard of ground attachments is given in Table 0-7.

TABLE 0-7: COMPENSATION STANDARD OF AFFECTED INFRASTRUCTURES AND ATTACHMENTS

Sub-projects Type Unit Compensation Remarks Adult tree RMB / each 64 Panjin 2nd Wastewater Project Young trees RMB / each 8 Stone dam RMB / m 100 Vegetable sheds RMB / mu 40,000 Private Yingkou 2nd Wastewater Project Cypress RMB / tree 80 Garden division Poplar RMB / mu 2,250 Private Yingkou Water Supply Upgrading Grape RMB / tree 45 Private RMB / tree 800 Tree older than 40 Pear tree RMB / tree 500 15-40 years RMB / tree 300 younger than 15 RMB / tree 840 older than 40 RMB / tree 700 30-40 years Plum tree RMB / tree 500 15-30 years RMB / tree 300 Younger than15 RMB / tree 2,000 older than 50 RMB / tree 1,200 40-50 years RMB / tree 800 30-40 years Apple tree Yingkou EDZ Solid Waste RMB / tree 500 20-30 years Treatment RMB / tree 300 15-30 years RMB / tree 200 Younger than 15 RMB / tree 1,000 older than 30 Jujube tree RMB / tree 200 Younger than10 RMB / tree 300 older than15years Peach tree RMB / tree 200 younger than15 Annual production 50 Apricot tree RMB / tree 200 jin, 1 RMB/jin Guard house RMB / house 1,000 50 RMB /m2 Vegetable shed RMB / m 200 Tomb RMB / tomb 600 Fushun Solid Waste Expansion & Storage house RMB / m2 200 Upgrading

SOGREAH – 1350185 PAGE 33 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT Sub-projects Type Unit Compensation Remarks Upgrading Side house RMB / m2 100 Enclosure wall RMB / m3 145 Simple toilet RMB /each 50 Piggery RMB / m2 16 Cellar RMB /each 100 Manual well RMB /each 350 (without motor) Pipe well (200mm

SOGREAH – 1350185 PAGE 34 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT Sub-projects Type Unit Compensation Remarks Hen house RMB /m2 50 Assembled house RMB / m2 100 Brick-wood house RMB / m2 200 Sheep house RMB / m2 50 Well RMB /each 800 80Yuan/m deep Enclosure wall RMB /m 5

21) Entitlement Matrix

The compensation entitlement matrix is given in Table 0-8.

SOGREAH – 1350185 PAGE 35 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-8: ENTITLEMENT MATRIX

Impact Degree Compensation Policy Compensation Standard Permanent land acquisition Farmland, non-agricultural land and All affected villages/ brigades can gain Anshan water supply: paddy field compensation RMB (affected households 93 and crop loss. Project takes 1680.26 mu compensation. 8,000/mu, resettlement subsidy RMB 5,330/mu, young affected population 395, permanently, including 1259.96 mu Affected 93 households (395 persons) will get crop compensation RMB1,333/mu. including 273 labors) collective land and 420.3 mu state young crop compensation. land Affected persons will get cash compensation if Haicheng Water Supply: dryland land compensation Land acquisition impact is at most affected villages do not redistribute farmland. RMB10,000/mu, resettlement subsidy RMB6,000/mu, 9.8% in affected villages. Resettlement subsidy and some land young crop compensation RMB1,000/mu, vegetable land compensation are used for income and young crop compensation RMB3,000/mu. livelihoods restoration, Affected village will provide employment help Fushun Solid Waste Expansion & Upgrading: in local enterprises to affected persons and dryland land compensation RMB14,000/mu, resettlement training to restore their income. subsidy RMB12,000/mu, young crop compensation RMB2,000/mu, wasteland compensation RMB6,000/mu,

Panjin 2nd Wastewater: paddy field compensation RMB30,000/mu, resettlement subsidy RMB30,000/mu, young crop compensation RMB2,000/mu.

Yingkou 2nd Wastewater: paddy field land compensation RMB30,000/mu, resettlement subsidy RMB30,000/mu, young crop compensation RMB2,000/mu. Yingkou Water Supply: waste hill land compensation RMB4,500/mu, dryland young crop compensation RMB1,500/mu. Yingkou EDZ Solid Waste: orchard: land compensation RMB10,000Yuan/mu, resettlement subsidy RMB6,000/mu, hill land land compensation RMB 6,000/mu, resettlement subsidy RMB4000/mu,

SOGREAH – 1350185 PAGE 36 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Impact Degree Compensation Policy Compensation Standard Dryland land compensation RMB15000/mu, resettlement subsidy RMB9000/mu,. Gaizhou Wastewater: dryd land compensation RMB12,000/mu, resettlement subsidy RMB 6000/mu, young crop compensation RMB1,500/mu. Temporary land Project takes 1091.6 mu collective Affected persons gain young crop Haicheng Water Supply: vegetable land young crop acquisition land temporarily and the period is 3 compensation if they restore their land. compensation RMB3,000/mu. months at least and one year at Affected persons will get land restoration most. 22 villages and 4,726 persons compensation as annual land yield. Panjin 2nd Wastewater: paddy field young crop are affected. compensation RMB2,000/mu.

Yingkou 2nd Wastewater: paddy field young crop compensation RMB2,000/mu. Yingkou Water Supply: dryland young crop compensation RMB1,500/mu. Rural house Demolished rural house: 14,187m2, The property owners of affected houses will Compensation is decided by house resettlement cost: affected 238 households and 732 be compensated as resettlement cost and Brick-concrete: 700Yuan/ m2 housing site. people. Brick-wood: 650 Yuan/ m2 Rebuild first then demolition; rebuild by farmers themselves. Brick-concrete: 700Yuan/ m2; Brick-wood: 650/ m2 Moving allowance 300 Yuan/ household. Ground attachments 8,830 adult and 12 young poplars, The owners of affected ground attachments Ground attachments taken will be compensated with cash 437m stone dams 5,750 cypresses; can get cash compensation. as replacement cost. 4mu greenhouses; 13,800 grape Standard: RMB64/adult poplar, 8 Yuan/young, stone dam trees, 40mu poplar garden; Standard: RMB64/adult poplar, 8 Yuan/young, RMB100/m; RMB80/cypress, greenhouses stone dam RMB100/m; RMB80/cypress, RMB40,000/mu; RMB45/grape tree, poplar garden 14,246 fruit trees, 60m2 guarding greenhouses RMB40,000/mu; RMB45/grape RMB2,250/mu; houses, 3 tombs, 133 m steel frame tree, poplar garden RMB2,250/mu; sheds,200m2 warehouse, 274m2 fruit trees are compensated as market price, guarding attached house 2375m3 fences, 156 fruit trees are compensated as market price, house RMB50/m2, RMB600/tomb, steel frame shed simple toilets, 7807 hog pens, 61 guarding house RMB50/m2, RMB600/tomb, RMB200/m.

SOGREAH – 1350185 PAGE 37 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Impact Degree Compensation Policy Compensation Standard vegetable vaults, 116 hand pump steel frame shed RMB200/m. wells, 600 sunk wells, 643 poultry warehouse RMB 200 /m2, attached house RMB 100 /m2, house, 2312m2 livestock pens 238 warehouse RMB 200 /m2, attached house fence RMB 145/m3, simple toilet RMB 50 each, hog pen households electricity, RMB 100 /m2, fence RMB 145/m3, simple RMB 16 each, vegetable vault RMB 100each, hand pump 14978m2brick floor toilet RMB 50 each, hog pen RMB 16 each, well RMB 350each, sunk well RMB 100each, poultry surface,sophora tree 197; vegetable vault RMB 100each, hand pump house,RMB 60 each, livestock pens RMB 45/m2, well RMB 350each, sunk well RMB 100each, household electricity RMB 140/ household, brick floor peach 2020, jujube tree 420, poultry house,RMB 60 each, livestock pens RMB 10 /m2, sophora tree 20Yuan/tree. chestnut tree 20, grape 6824, plume RMB 45/m2, household electricity RMB 140/ tree 3940, pear tree 1215, walnut household, brick floor RMB 10 /m2, sophora tree Various type of trees are compensated as market price, tree 500, poplar tree 13680, sophora 20Yuan/tree. hen house 50Yuan/m2assembled house 1200, willow 2300, yellowwood tree 100Yuan/m2brick-wood house 200Yuan/m2sheep 1300, young tree 1550, hen house Various type of trees are compensated as house 50Yuan/m2well 800Yuan/eachenclosure wall 218m2, assembled house 50m2, market price, hen house 5Yuan/m; brick-wood house 50m2, sheep 50Yuan/m2assembled house house 150m2, well 8, enclosure wall 100Yuan/m2brick-wood house 100m; 200Yuan/m2sheep house 50Yuan/m2well 800Yuan/eachenclosure wall 5Yuan/m;

SOGREAH – 1350185 PAGE 38 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Rehabilitation Measures for Livelihoods of DPs

The resettlement goal of this project is make sure that DPs can get good resettlement, restoration and all the lost assets can be compensated and enable them to share in the project benefits. Displaced persons should be given allowance for their temporary difficulties and assisted in their efforts to improve their livelihoods and standards of living and enterprise production and/or at least to restore them (in real term) to pre-displacement levels or to levels prevailing at the beginning of project implementation, whichever is higher.

22) Compensation and Resettlement of Permanent Land Acquisition

Impact analysis

There are 8 sub-projects involving permanent land acquisition with a total of 1,680.26 mu, in which 1,259.96 mu collective land (including 481.96 mu collective cultivated land) and 420.3 mu state-owned land (including 120 state-owned cultivated land). Permanent collective land acquisition includes paddy land, wasteland, orchard, and dryland. The investigation into land acquisition of the project areas is given in Table 0-1. In the affected villages, the highest impact of land acquisition is 9.8% which is not considered significant. The Land Acquisition Household Analysis

SOGREAH – 1350185 PAGE 39 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Table 0-2) shows that most farmers’ farmland is not taken totally.

SOGREAH – 1350185 PAGE 40 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-1: LAND ACQUISITION AFFECTED VILLAGES ANALYSIS

Proportion of Pre-land Acquisition Proportion Cultivated Working of Cultivated land Land per Effect Rate Net Income Outside Agricultural Sub-project Village Population Cultivated Cultivated Acquisition Person after of Land per Person Income Income Land Land per (mu) Land Acquisition (RMB) Compared to Compared (mu) Person Acquisition on-agricultural to Total Income Anshan Water Supply – WTP and Liusanjiazi 472 900 1.91 6 1.89 0.67% 4,500 70% 60% Network Upgrading Haicheng Water Santaizi 1,892 1,900 1.00 1.06 1 0.06% 4,489 21% 50% Supply Extension Dayu 1,700 1,450 0.85 2.11 0.85 0.15% 3,455 23% 50% and Upgrading Fushun Solid Waste Xiaoyanwu Expansion &      È  È È village Upgrading Panjin 2nd Gujia 5,000 1,800 0.36 6 0.358 0.3% 4,000 3.2% 26% Wastewater Project Yingkou 2nd Chengzi 1,710 5,200 3.00 2 3 0.03% 5,015 3% 25% Wastewater Project Yingkou Water Jiatun 1,859 3,159 1.70 15(forest land) 1.69 0.5% 2,500 70% 50% Supply Upgrading Gaolicheng 1,637 1,520 0.93 32(forest land) 0.91 2.1% 1,650 60% 50% Yingkou EDZ Solid Tuotaipu 2,100 4,605 2.19 225 2.09 4.8% 3,700 60% 75% Waste Treatment Shagangtai 1,600 2,100 1.31 206.79 1.18 9.8% 4,500 22% 20% Gaizhou Urban NO.1 and 120(state- Wastewater No.2 group owned 2800 1900 0.67 0.64 6% 4000 20% 30% Treatment Project of Xihai cultivated State Farm land)

SOGREAH – 1350185 PAGE 41 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT TABLE 0-2: LAND ACQUISITION AFFECTED HOUSEHOLD ANALYSIS

Affected Farmland Impact Degree Affected Project Househ per Villages 100% 100-75% 75-50% 50%-25% Less 25% old Person Non- Non- Non- Non- Non- Cultivated Cultivated Cultivated Cultivat Cultivated Cultivate Cultivat Cultivated Cultivat Cultivat land land land ed land land d land ed land land ed land ed land Anshan Water 2(collectiv Supply – WTP and Liusanjiazi 2 e reserved Network land) Upgrading Haicheng Water Santaizi 3 1 3 Supply Extension Dayu 4 0.85 4 and Upgrading Fushun Solid Xiaoyanw Waste Expansion 8  2 1 5 u village & Upgrading Panjin 2nd Wastewater Gujia 3 0.36 3 Project Yingkou 2nd Wastewater Chengzi 2 3 2 Project 1(contract Jiatun 1 1.7 Yingkou Water land) Supply Upgrading Gaolichen 0 0.93 g Tuotaipu 27 2.19 1 3 4 5 14 Yingkou EDZ Solid Shagangt Waste Treatment 28 1.31 2 1 3 22 ai 15(collecti Gaizhou Urban Xihai ve Wastewater State 15 0.6 reserved Treatment Project Farm land) Total 93 0 1 4 3 2 4 8 5 52 14

SOGREAH – 1350185 PAGE 42 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Resettlement Plan and Measurers

Project affects 273 labourers as given in TABLE 0-3. The affected villages or farms will get land compensation and resettlement subsidy, and land contractors will get young crop compensation.

TABLE 0-3: REHABILITATION MEASURES OF LAND ACQUISITION

Resettleme Project Rehabilitation Measures Remarks nt members Affected land is village reserved land. Affected Affected land is village Anshan Water 4 villages are responsible for adjusting land to reserved land Supply affected persons and sign contracts with them. z Resettlement subsidy, young crop Impact degree is 20% compensation and not less than 80% (maximum) land compensation will give to affected Haicheng persons. Affected persons resettle Water Supply themselves. They can continue their jobs 17 Extension and or operate private business with Upgrading compensation. z Village committee will provide employment information and training or assistance for affected persons. z Resettlement subsidy, young crop Impact degree of land compensation will be given to affected acquisition is 7.7% , and villager. They can continue their jobs or agricultural income is operate private business with about 20%. Fushun Solid compensation. Waste z They will redistribute the rest of the 663 16 Expansion & mu farmland in the same year of land Upgrading acquisition within the village. z Village committee will provide employment information and training or assistance for affected persons.

z Main income of affected villagers does The maximum Effect not come from agriculture, and rate of land acquisition agricultural income accounts for small is 24% and the percentage of total incomes. maximum percentage of Resettlement subsidy, young crop agricultural income compensation and not less than 80% accounting for total land compensation will be given to all income in affected villagers in affected villager group. they person is 29%. So Main Panjin 2nd can continue their jobs or operate private income of affected Wastewater 6 business with compensation. villagers does not come Project z Village committee will help affected from agriculture. Effects persons to clothes factory, loading for income is not factory, prefab factory and brick factory significant. The affected work. This village is planning to set up a person can increase plastic wholesale market and also can their income through employ some laborers. developing private z 3) Village committee will provide business or working in employment information and training or some factory after land assistance for affected persons. acquisition. Resettlement subsidy and young crop Permanent land Yingkou 2nd compensation will be given to affected persons acquisition is only 2 mu Wastewater 4 and they resettle themselves. Villages provide and impact degree is Project help to affected persons resettlement. only 0.03% Yingkou Water Affected household contracted a village waste Land acquisition affects 2 Supply hill in 2004 with a contract period of 30 years. waste hills only and all

SOGREAH – 1350185 PAGE 43 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT Resettleme Project Rehabilitation Measures Remarks nt members He is going to plant sheep feedstuff but it is not are village collectives developed yet, so his income is not affected except 15 mu and it only need to return his contract cost. contracted by one household. z Resettlement subsidy, young crop Affected village has no compensation and not less than 80% reserved land for land compensation will be given to readjustment but affected persons. Affected persons agricultural income is Yingkou EDZ resettle themselves. They can continue small; most income is 177 Solid Waste their jobs or operate private business with derived from tertiary compensation. industry. z Village committee will provide employment information and training or assistance for affected persons. z Young crop compensation and ground 120 mu cultivated land attachment compensation will be given to affected by the project is affected villagers. And surplus land rents reserved land of Xihai will be returned to affected villagers. State Farm. In addition, z The affected farm is close to Bohai sea, Main income of affected fish capture on sea is very popular. Also villagers does not come the Farm has 3 enterprises and more from agriculture, and than 100 households who have their own agricultural income fish-catching ships and more than 200 accounts for small households engaging on process of sea percentage (20%) of Gaizhou food in the affected Farm. A big amount total incomes. Urban of labors are needed for these activities Wastewater 47 relating sea. At present, there are more Treatment than a half of labors in the affected farm Project engaging on activities relating to sea. Average salary in a year is 18,000- 23,000 Yuan/person that is far more than incomes from land. So the village committee will help affected persons to work in fishing ship or factory based on willingness of affected persons. z Village committee will provide business information and training or assistance if affected persons hope developing private business. Total 273

The use of land compensation and resettlement is decided by the will of affected persons. The land taken is located in urban planned areas, so affected labourers work or do business in central areas. The income from land accounts for a small portion of whole family income; they all have other income sources. Through consultation with affected persons, some land compensation (about 80%) and all resettlement subsidies will be handed out directly to them. Land compensation can be used for village infrastructure improvement, economic development and affected people’s income restoration. The use of acquired land needs discussion at villagers meeting, and finance should be disclosed.

Labourers of the right age will be included in the town employment service scope according to the principle of market employment. They can get employment introduction and vocational guidance from municipal public service institutions or (all levels) in the place of registered permanent residence.

SOGREAH – 1350185 PAGE 44 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT 23) Compensation and Resettlement of Temporary Land Acquisition

There are four sub-projects involving temporary land acquisition. They are Haicheng Water Supply Extension and Upgrading, Panjin 2nd Wastewater Project, Panjin Solid Waste Treatment and Yingkou 2nd Wastewater Project. Total collective land acquisition is 1,091.6 mu and most is cultivated land. Land taking period is at least three months and one year at most. Temporary collective land acquisition affects 22 villages and accounts for 4.5% of total village farmland. Temporary land taken affects 4,726mu. The persons affected temporarily will get young crop compensation according to their yield per mu and the affected period. The compensation is higher than the production value of affected land in one year. The contractor will re-cultivate and then return the land to affected persons at the end of the “land taking period”.

1.1 Rural house demolition, compensation and resettlement

For the environment security, Fushun solid waste disposal plant extension project need 14,187 m2 rural houses which affected 238 households and 732 villagers of Xioayanwu village and Dongbao of Wudao village.

Affected villagers decided to rebuild houses in their village through negotiation. Wanghua district land bureau takes the charge of the new housing site by land exchange. The farmers whose farmland is changed to housing site will get young crop compensation. The affected land is all dryland. The young crop compensation standard is RMB 2000/mu. For Xioayanwu village and Dongbao of Wudao village, the housing site is changed to farmland. The soil can be available to the rich soil when farmland is changed to housing site to satisfy the growth of crops. Before house demolition, affected villagers can get compensation as house resettlement cost brick-concrete RMB 700/m2, brick-wood RMB 650/ m2, moving allowance RMB 300/househodl .

Through investigation, there are agricultural people and non-agricultural people in affected household. Totally there are 46 non-agricultural people in affected Xiaoyanwu village and all of affected people in Dongbo of Wudao village are agricultural people. By negotiation between Land Management Bureau of Wanghua district and affected people, same resettlement policy with agricultural people will be adopted for all non-agricultural people, that means house site and compensation based on replace cost will be provided for all affected non- agricultural people.

To listen to the opinions of affected persons by hearings. The new resettlement site of Dongbao of Wudao village locates between Qidaogou and Badaogou, the south of former residential place. This new site is 1000m far away from solid waste plant.

SOGREAH – 1350185 PAGE 45 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT The resettlement site of Xiaoyanwu locates in the farmland of northwest of Jinjiagou. This site is 700 m far away from solid waste plant. These two resettlement sites own convenient transport and safe water quality so affected villagers are all satisfied.

Wanghua district national land bureau is in the charge of electricity supply, communication and road public infrastructures rebuilding of new resettlement sites. The related expense has been included in RAP. Meanwhile, Wanghua district land bureau also take responsibility of taking back land using license of former housing site and house property license and destroy them and transact new licenses for villagers.

In general, there will be no extra expense to affected villagers by moving work in these two villages in their living, production, medicine, communication and schooling. It will not decrease level of living and environment whereas moving can improve their residential environment. Investigation showed that most affected villagers hope to improve residential condition and living quality through moving. Agricultural household will be resettled in former village. Village and brigade will no be repealed. So, for the affected villagers, the habit of living and production, social and cultural background and social relationship will not be damaged.

24) Affected Infrastructure and Ground attachment

Project organization should compensate for the affected infrastructure and ground attachments to property rights organizations for them to rebuild. The restoration measures for demolished facilities should be planned and arranged in advance. In actual operation, measures should suit differing conditions to ensure safety and effectiveness, avoid delay and errors, and minimize the adverse effect to nearby people.

As for affected civil public infrastructure, demolition is based on the project working drawings. No effect to project construction is prerequisite to minimize displacement, where feasible. As for the demolition of affected pipelines, demolishers must guarantee not to affect residents (including unnecessary displaced persons) along the pipelines, and the demolition could only take place after rebuilding (or displacement).

SOGREAH – 1350185 PAGE 46 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Organization and Implementation Arrangements

25) Organization

The Liaoning Urban Construction and Renewal Project Office (LUCRPO) was established in 1986 to manage World Bank financed projects. With its experience of three previous loan financed project, it is well placed to guide the preparation of this resettlement plan and implementation of LMC-2 land acquisition. Sub-project offices (PMOs) have been set up to take charge of LMC-2 implementation, including resettlement preparation, land acquisition and demolition administration, and internal supervision and monitoring. Organizations and agencies, and their responsibilities for each sub-project are given in table 6-1.

TABLE 0-1: RESETTLEMENT INSTITUTIONS FOR LMC-2

Resettlement Administrative RAP Preparation Monitoring Project Implementation Institution Institutions Agencies Agencies Anshan Water Anshan environmental NRCR of Supply – WTP and project office, Anshan Anshan tap water Liaoyang county Hohai Network tap water general general company land bureau University Upgrading company Haicheng urban Haicheng Water Liaoning provincial Haicheng land NRCR of construction investment Supply Extension Urban-Rural Planning acquisition affairs Hohai Co., Ltd, Haicheng tap and Upgrading design Institute station University water company Fushun solid Fushun urban road & Fushun urban road & Wanghua district NRCR of waste plant traffic PMO traffic PMO land bureau Hohai extension project University Panjin 2nd Liaoning provincial Liaoning provincial Panjin land NRCR of Wastewater urban construction Urban-Rural Planning acquisition service Hohai Project project office design Institute station University Panjin urban Liaoning provincial Panjin land NRCR of Panjin Solid Waste construction project Urban-Rural Planning acquisition service Hohai disposal office design Institute station University Yingkou 2nd NRCR of Yingkou drainage Yingkou drainage Yingkou municipal Wastewater Hohai company company land bureau Project University Yingkou Water Yingkou water business Yingkou water Yingkou municipal

Supply Upgrading group business group land bureau Yingkou EDZ Yingkou EDZ planning planning NRCR of Yingkou EDZ Solid &construction bureau &construction bureau Land office of Lutun Hohai Waste Treatment environmental environmental Town University sanitation development sanitation development

SOGREAH – 1350185 PAGE 47 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT Resettlement Administrative RAP Preparation Monitoring Project Implementation Institution Institutions Agencies Agencies Gaizhou Urban Gaizhou Urban Gaizhou Urban NRCR of Government of Wastewater Drainage Limited Drainage Limited Hohai Xihai town Treatment Project Company Company University

Project resettlement implementation institutions serve the local land bureaus; their main responsibilities are social economy investigation, public participation organization, RAP preparation, RAP implementation, land acquisition registration, related procedure handling, signing compensation and resettlement agreements with affected persons, villager committee resettlement and income restoration monitoring, reporting advice and suggestions of displace persons to superior bureaus, staff training, reporting on the land acquisition and resettlement situation, and dealing with problems during implementation.

Organization Structure

The RAP organization structure for LMC-2 is given in Figure 6.1 below.

FIGURE 0-1: LMC-2 RESETTLEMENT INSTITUTES ORGANIZATION STRUCTURE

Liaoning Provincial Urban Construction and Renewal Project Office

Subproject Leading Team NRCR M&E Institute Municipal land and Project Owners or Project Subproject Land Acquisition and Demolition Administration Offices Implementation Departments Departments

Design Institute Affected Village Committee

Displaced Persons

26) Implementation Timetable

In accordance with project implementation schedule, LMC-2 will be implemented in phases from June 2006 to the end of 2010. The schedule of land acquisition, demolition and resettlement interlinks with the implementation plan of each sub-

SOGREAH – 1350185 PAGE 48 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT project. Land acquisition, demolition and resettlement task will commence in March 2006 and end in February 2009.

The LMC-2 project construction and land acquisition, demolition and resettlement schedule for each sub-project are as follows:

¾ Project land using plan is decided based on the project construction schedule

¾ Enough time should be allowed for land acquisition, demolition and resettlement before construction work starts.

¾ Land acquisition and demolition should be finished one month before using land for construction activities.

The overall land acquisition, demolition and construction schedule is shown in Table 0-, and the detailed land acquisition and demolition schedule is given in Table 0-2.

TABLE 0-2: SCHEDULE OF LAND ACQUISITION & DEMOLITION AND CONSTRUCTION

Project Construction Schedule Resettlement Schedule Anshan Water Supply – WTP and 2006.6-2008.12 2006.10-2006.12 Network Upgrading Haicheng Water Supply Extension 2006.6-2008.12 2006.10-2007.12 and Upgrading Fushun solid waste plant extension 2007.12-2008.12 2006.10-2007.10 Panjin 2nd Wastewater Project 2006.6-2008.12 2006.10-2007.12 Yingkou 2nd Wastewater Project 2006.6-2008 2006.10-2007.12 Yingkou Water Supply Upgrading 2006.6-2008.12 2006.5-2008.6 Yingkou EDZ Solid Waste 2006.6-2006.12 2006.5-2006.12 Treatment Gaizhou Urban Wastewater 2007.1-2009.12 2006.6-2007.12 Treatment Project

SOGREAH – 1350185 PAGE 49 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT TABLE 0-2: SUB-PROJECT LAND ACQUISITION AND DEMOLITION SCHEDULE

Project Anshan Haicheng Fushun Yingkou Yingkou Panjin 2nd Yingkou 2nd Gaizhou Implementation Tasks Water Water solid Water EDZ Solid Wastewater Wastewater Wastewater Phase Supply Supply waste Supply Waste Preparation Land acquisition and demolition 2005.11 2006.3 Phase scope decision 2005.6 2005.8 2005.8 2005.8 2005.8 2003.6 Physical quantity investigation 2005.6 2005.11 2006.4 2005.8 2005.8 2005.8 2005.8 2006.6 Primary social economy 2006.4 2005.7 2005.11 2005.8 2005.8 2005.8 2005.8 2006.6 investigation RAP consultation 2005.8 2005.11 2006.4 2005.9 2005.9 2005.8 2005.8 2006.6 RAP preparation 2005.9 2005.11 2006.5 2005.10 2005.9 2005.9 2005.9 2006.6 RAP disclosure 2005.12 2005.12 2006.5 2005.12 2005.12 2005.12 2005.12 2006.7 RAP approval 2006.2 2006.2 2006.7 2006.2 2006.2 2006.2 2006.2 2006.7 Exam and approval procedure of 2006.7 2006.2 2006.2 2006.2 2006.3 2006.3 2006.3 2007.1 rural collective land acquisition Land acquisition and demolition 2006.7 2006.3 2006.3 2006.3 2006.3 2006.3 2006.4 2007.3 meeting; policy announcement land acquisition and demolition 2006.7 Implementation 2006.3 2006.4 2006.3 2006.4 2006.4 2006.5 2007.3 notice Phase Compensation and resettlement 2006.8 2006.5 2006.5 2006.5 2006.5 2006.6 2006.6 2007.4 consultation Construction land delivery 2006.6 2006.6 2007.10 2006.6 2006.8 2006.8 2006.8 2007.4 Displace persons’ income 2007.11 2006.10 2006.10 2006.10 2006.10 2006.10 2006.10 2007.10 restoration M&E Monitoring and evaluation 2006.12 2006.12 2007.12 2006.12 2006.12 2006.12 2006.12 2007.12

SOGREAH – 1350185 PAGE 50 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Budget and Funding Arrangements

27) Budget

The LMC-2 budget includes land acquisition compensation and compensation for demolition of guard houses and ground attachments demolition. These are referred to as the basic expense. The calculation of the stipulated fee and tax is as follows: implementation administration is 3% of basic expense; survey & design are 2%; contingency is 10%, and M&E is 2% of the basic expense.

The total resettlement budget is RMB 75.37 million, including land compensation of RMB 19.56 million accounting for 26%. Residential house demolition compensation is RMB 9.46 million, for 13% and ground attachment compensation is RMB 19.74 million (26%). Project budget is given in detail in TABLE 0-1.

SOGREAH – 1350185 PAGE 51 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-1: LMC-2 RESETTLEMENT BUDGET

Anshan Water Haicheng Fushun solid Panjin 2nd Yingkou 2nd Yingkou Water Yingkou EDZ Supply – WTP Water Supply waste plant Gaizhou Total expense Project Wastewater Wastewater Supply Solid Waste and Network Extension and Wastewater (RMB 10,000) Project Project Upgrading Treatment Upgrading Upgrading Part : Land 8.00 6.25 105.99 37.2 36.4 162.00 1,402.30 198 1956.14 - (1): Permanent Land

Acquisition a. Paddy Field 8.00 37.2 12.4 57.6 b. Dryland 5.39 92.4 64.30 198 360.09 c. Wasteland 13.59 21.15 34.74 d. Orchard 648.00 648 e. Hill Land 690.00 690 - (2): Temporary Land 0.86 0 0.78 24 140.85 166.49 Part : House Demolition 946 0.30 946.3 Compensation a. Guard House 946 0.30 946.3 Compensation Part : Ground Attachments 536.68 60.89 62 71.10 1001.50 242 1974.17 and Public Infrastructure Sub-total of Part to 8.00 6.25 1588.67 98.87 98.4 233.10 2,404.10 440 4877.39 Part : Other Expense à a. Administration Fee (3%) 0.24 0.188 47.66 2.97 2.952 6.99 72.12 13.20 146.3195 b. Survey & Design 0.16 0.13 31.77 1.98 1.968 4.66 48.08 8.80 97.543 Expense(2%) c. Contingency (10%) 0.80 0.63 158.88 9.89 9.84 23.31 240.41 44.0 487.755 d. M&E Fee (2%) 0.16 0.13 31.77 1.98 1.968 4.66 48.08 8.80 97.543 e. Tax 13.75 7.24 102.7 18.23 0.7998 49.51 1,494.42 144 1830.655 Total Expense 23.11 14.56 1961.45 133.92 115.93 322.24 4,307.22 658.80 7537.21

SOGREAH – 1350185 PAGE 52 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT 28) Capital Sources and Allocation

Liaoning Province environment component project financed by the World Bank belongs to urban infrastructure and, based on the project schedule, resettlement funds come from municipal government finance.

According to the compensation policy and resettlement plan standard, each municipal project owner allocates the resettlement fund to the demolition implementation bureaus, and the latter pays compensation to the affected persons or land administration bureaus.

TABLE 0-2: RESETTLEMENT CAPITAL SOURCES

World Percentag Total Bank Resettlement e Investment Capital Project Loan Fund (RMB Of Total (RMB sources (US $ million) Investment million) million) (%) Anshan Water Supply – WTP and Municipal 258.31 15.47 0.23112 0.1% Network Upgrading Finance Haicheng Water Supply Extension Municipal 118.60 7.30 0.1456 0.1% and Upgrading Finance Municipal Fushun solid waste plant extension 95.38 6.00 19.6145 20.6% Finance Municipal Panjin 2nd Wastewater Project 268.84 2230 133.92 0.5% Finance Municipal Yingkou 2nd Wastewater Project 483.00 30.00 1.1593 0.2% Finance Municipal Yingkou Water Supply Upgrading 305.58 19.00 3.2224 1.1% Finance Yingkou EDZ Solid Waste Municipal 150.00 5.77 43.0722 28.7% Treatment Finance Gaizhou Urban Wastewater Municipal 144.2 9.84 658.8 4.6% Treatment Project Finance Municipal Total 1821.91 115.68 7537.21 4.1% Finance

SOGREAH – 1350185 PAGE 53 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Public Participation, Consultation and Grievance

29) Public Participation

According to national, provincial and subproject municipal policies and regulations for land acquisition and demolition, the project should protect the legal rights of displaced persons and enterprises, and minimize the discontent and dispute. For LMC-2 construction, the displacement and resettlement policy and implementation rules, and the resettlement plan should be prepared well to successfully achieve the goal of resettlement. This project pays much attention to consultation with displaced person, and has listened carefully to their opinions on the resettlement policy and plan and its implementation.

SOGREAH – 1350185 PAGE 54 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-1: PUBLIC PARTICIPATION PROCEDURE

Schedule Anshan Haicheng Yingkou Yingkou Contents Place Participator Method Fushun Panjin 2nd Yingkou 2nd Gaizhou Water Water Water EDZ Solid Main Conclusion solid waste Wastewater Wastewater Wastewater Supply Supply Supply Waste Physical Quantity Land Bureaus, Affected Investigati Investigation in Project Unit and Physical Quantity Villages on 2005.6 2005.11 2006.3 2005.8 2005.6 2005.8 2005.8 2006.6 Project Areas Affected Villager Data Acquisition Together Representatives To know the Project Area Social social economy Land Bureaus, Economy Situation Affected Consultati situation and Project Unit and Investigation and Villages on 2005.8 2005.11 2006.4 2005.9 2005.8 2005.8 2005.9 2006.6 resettlement Affected Villager Compensation & Together intent of affected Representatives Resettlement Intent villages and villagers Basically decided Land bureaus, project Compensation and Land project unit and Prepare 2005.9 2005.11 2006.5 2005.9 2005.9 2005.9 2005.9 2006.6 compensation resettlement policy bureau affected villager together and resettlement representatives policies Land bureaus, Affected Basically decided project unit and Prepare Resettlement plan villages 2005.9 2005.11 2006.5 2005.9 2005.9 2005.9 2005.10 2006.6 resettlement affected villager together method and plan representatives

SOGREAH – 1350185 PAGE 55 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

During the resettlement plan preparation, subproject land acquisition bureaus, implementation agencies and design organizations announced the project resettlement plan to affected persons in different ways and through many channels as given in TABLE 0-2. At the same time, they have heard the opinions of the displaced persons and consulted with them.

SOGREAH – 1350185 PAGE 56 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

TABLE 0-2: POLICY DISCLOSURE PROCEDURE

Disclosure Schedule Remarks Disclosure way Files Anshan Water Haicheng Fushun solid Panjin 2nd Yingkou 2nd Yingkou Water Yingkou EDZ Gaizhou and language Supply Water Supply waste Wastewater Wastewater Supply Solid Waste Wastewater Project Chinese, 2006.3 2005.10 2005.9.8 2006.7 introduction newspaper General introduction of Chinese, 2005.6 2005.11 2006.3 2005.8 2005.9 2005.8 2005.8 2006.6 project land workshop acquisition Municipal policies of land Chinese, 2005.6 2005.11 2006.4 2005.9 2005.9 2005.10 2005.9 2006.6 acquisition and workshop house demolition Anshan Daily Anshan Daily Fushun Daily Panjing Daily Yingkou Daily Yingkou Daily Yingkou Daily Gaizhou Daily 2006.1.2 2006.1.24 2006.1.13 2006.1.25 2006.1.11 2006.1.25 2006.7.17 5 2006.5.26 Resettlement Anshan Water Environmental Project Chinese, plan report Supply Yingkou management Gaizhou office or Yingkou water newspaper Company wastewater office of Urban disclosure Anshan PMO Panjing PMO resources owner website Fushun PMO treatment Yingkou Drainage Company www.ASZLS.c Company development Company Ltd. om Zone Chinese, hand Resettlement out to displaced After approval by World Bank plan booklets persons

SOGREAH – 1350185 PAGE 57 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT 30) Grievances

The grievance mechanism was established during the project resettlement plan workout and implementation. Four phases of grievance are as follows:

¾Phase 1: Displaced persons can appeal by verbal or paper way to project demolition & resettlement offices or local land acquisition agencies if they are not satisfied with the resettlement plan. Each subproject land and demolition implementation organization refers to the sub-reports of the resettlement plan.

¾Phase 2: If displaced persons are still not satisfied with the decision of Phase 1, they can appeal to project agencies or project offices after receiving decision notice. Project agencies and the project office refer to the sub-reports of the resettlement plan.

¾Phase 3: If displaced persons are still not satisfied with the decision of Phase 2, they can appeal to the project municipality land or demolition bureaus and ask for administrative arbitration after receiving a decision notice. Administrative arbitration agency should make decisions within ten days. Each subproject land and demolition bureau see the sub-reports of resettlement plan.

¾Phase 4: If displaced persons are still not satisfied with the decision of Phase 3, they can sue at law under civil procedures on any aspect of the resettlement after receiving a decision notice.

Displaced persons can prosecute any aspect about resettlement including the compensation standard. Displaced persons should be informed about their rights pertaining to grievances through meetings or other ways. Media will be used for propaganda and the advice and suggestions about resettlement will be arranged to inform terms for resettlement organizations at different levels to deal with. Appeal and grievance to every agency or organization is free and the reasonable cost from it will be expended from the contingency of project land acquisition & demolition offices.

SOGREAH – 1350185 PAGE 58 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

Monitoring and Evaluation Arrangement

To achieve successful implementation of the demolition and resettlement plan, land acquisition, demolition and resettlement monitoring and evaluation will be done according to World Bank OP4.12 Involuntary Resettlement and Guiding to Resettlement Monitoring and Evaluation of China Projects Financed by World Bank. Monitoring is divided into twp parts: internal monitoring of resettlement organizations and external one. Monitoring and evaluation will begin in November 2006 and end in February 2009 and internal and external monitoring report will be submitted to the World Bank every half year.

LUCRPO will take charge of internal monitoring and the implementation by each subproject leading team, project office, land administration bureau and house demolition bureaus to ensure that land acquisition and demolition will be undertaken according to the plan principles and schedules by the implementation agencies. The purpose of internal monitoring is to maintain the good responsibility of the resettlement agencies during implementation.

External independent monitoring and evaluation is the activity that the independent monitoring institute conducts in respect to land acquisition, demolition and resettlement. NRCR of Hohai University will undertake the LMC-2 external monitoring. The scope of external monitoring includes: responsibility for resettlement network, land acquisition and demolition, implementation and compensation of resettlement, demolition and restoration of displaced persons, enterprises and shops, investigation and analysis of living standard of resettlers. Independent monitoring occurs where the institution, which is independent of resettlement implementation agencies, checks and evaluates all the implementation activities of land acquisition, demolition and resettlement over a long-term and overall view. Independent monitoring institution, by following the project resettlement activity, will evaluate if resettlement undertakes national relevant laws or regulations about land acquisition, demolition and resettlement, if accords with World Bank OP4.12 Involuntary Resettlement; if living standard of displaced persons improves or at least keep the same level of pre-project. Monitoring institution will give suggestions to relevant bureaus about problems found in monitoring and help to solve these problems.

SOGREAH – 1350185 PAGE 59 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT TABLE 0-1: MONITORING & EVALUATION AND REPORTING SCHEDULE

Internal External Sub-project Remarks M&E Reporting M&E Reporting 2007.6 2007.8 Internal and 2006.11 2006.12 Anshan Water external M&E 2007,5 2007,6 Supply once every half 2007.11 2007.12 year 2006.11 2006.12 2006.11 2006.12 2007,5 2007,6 2007,11 2007,12 External M&E 2007.11 2007.12 go with the Haicheng actual land

Water Supply acquisition and 2008.11 2008.12 demolition implementation 2009.11 2009.12 Fushun solid 2006.12 2006.12 2006.12 2006.12 Once internal waste 2007.3 2007.3 2007.12Ã 2007.12 M&E every 2007.6 2007.6 three months 2007.9 2007.9 and once 2007,12 external M&E 2007,12 every year 2006.11 2006.12 2007,11 2007,12 2007,5 2007,6 2008.11 2008.12 External M&E 2007.11 2007.12 go with the Panjin 2nd actual land

Wastewater acquisition and 2008.11 2008.12 demolition implementation 2009.11 2009.12 2006.11 2006.12 2007,11 2007,8 External M&E 2007,5 2007,6 2008.12 go with the nd Yingkou 2 2007.11 2007.12 actual land Wastewater 2008.11 2008.12 acquisition and demolition 2009.11 2009.12 implementation 2006.11 2006.12 2007,6 2007,8 External M&E 2007,5 2007,6 2008.11 2008.12 go with the Yingkou 2007.11 2007.12 actual land Water Supply 2008.11 2008.12 acquisition and demolition 2009.11 2009.12 implementation 2006.11 2006.12 External M&E 2007.11 2007.12 go with the 2006.11 2006.12 Yingkou EDZ actual land 2007,5 2007,6 Solid Waste acquisition and 2007.11 2007.12 demolition implementation 2006.11 2006.12 2007,11 2007,8 External M&E 2007,5 2007,6 2008.12 go with the Gaizhou 2007.10 2007.11 actual land Wastewater acquisition and demolition implementation

SOGREAH – 1350185 PAGE 60 JULY 2006 LIAONING PROVINCIAL GOVERNMENT – THE WORLD BANK LIAONING MEDIUM CITIES (LMC-2) URBAN INFRASTRUCTURE PROJECT – DESIGN REVIEW ADVISORY SERVICES RESETTLEMENT ACTION PLAN-EXECUTIVE SUMMARY REPORT

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