Heilongjiang Road Development II Project (Yichun–Nenjiang)

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Resettlement Planning Document

Resettlement Plan Document Stage: Draft for Consultation Project Number: 42017 June 2009

PRC: Heilongjiang Road Development II Project (Yichun–Nenjiang)

Prepared by Heilongjiang Provincial Communications Department.

The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

ADB Loan

Heilongjiang Road Development II Project (Yichun-Nenjiang)

Resettlement Plan

Heilongjiang Provincial Communications Department

June 2009

Contents

LIST OF ACRONYMS ...... 7 Executive Summary ...... 9 Chapter 1 Project Overview...... 14 1.1 Foreword ...... 14 1.2 Project Introduction...... 15 1.3 Project affected area ...... 16 1.4 Measures on reduction of resettlement...... 18 1.4.1 Measures on minimized land requisition ...... 18 1.4.2 Measures on route optimization ...... 18 1.5 Project preparation and compilation of resettlement plan...... 18 1.5.1 Project design...... 18 1.5.2 Compilation of resettlement planning...... 19 Chapter 2 Project Area’s Economic and Social Situations ...... 20 2.1 Administrative Zoning in Affected Area ...... 20 2.2 Social & Economic Status in the Affected Area ...... 21 2.2.1 Land Area and Population...... 21 2.2.2 Regional Gross Value of Production ...... 21 2.2.3 Population status ...... 22 2.2.4 Employed Population Distribution Among Different Sectors...... 22 2.2.5 Industrial Structure Ratio of Employed population...... 23 2.2.6 Cultivated land area...... 23 2.2.7 Gross agricultural output value structure ...... 24 2.2.8 Income of rural and urban residents...... 24 2.2.9 Per capita financial revenue and expenditure...... 25 2.2.10 Education status ...... 26 2.3 Household Sampling Survey in Affected Area ...... 26 2.3.1 Sample Analysis ...... 26 2.3.2 Cultivated Land Status of Sampling Household...... 27 2.3.3 Rural People Per Capita Income...... 27 2.3.4 Planting Sector Revenue and Expenditure ...... 28 2.3.5 Sampling household per capita income structure ...... 28 2.3.6 Sampling household per capita expenditure...... 28 2.3.7 Gender structure of sampling household ...... 29 2.3.8 Age structure of sampling household...... 29

2.3.9 Sampling household ethnic minority status...... 30 2.3.10 Vulnerability status of sampling household...... 30 2.4 AP’s Attitudes Towards to the Project ...... 30 2.4.1 Survey on Attitude to Highway Construction...... 30 2.4.2 Survey on Poverty Status Along the Route...... 32 Chapter 3 Impacts of Project Land Requisition and Resettlement...... 35 3.1 Definition and scope of project impact ...... 35 3.2 Investigation of material indexes...... 35 3.3 Project impact...... 36 3.3.1 Impact scope of the highway...... 36 3.3.2 Impact of land requisition ...... 37 3.3.3 Impacts of the Project on Enterprises ...... 41 3.3.4 Impact to Structure Demolition...... 42 3.3.5 Impact to forest...... 42 3.3.6 Impact to auxiliary facilities...... 43 3.3.7 Affected population...... 43 3.4 Project impact analysis ...... 47 3.4.1 Impact analysis on occupied cultivated land...... 47 3.4.2 Analysis on impact of removal...... 48 3.4.3 Analysis on impact to enterprise ...... 48 3.4.4 Analysis on forest land requisition...... 48 Chapter 4 Legal and Policy Framework...... 49 4.1 Policy basis ...... 49 4.1.1 Summary of Key Domestic Policies and Regulations ...... 49 4.1.2 ADB Policies...... 50 4.1.3 Policy Gaps ...... 51 4.2 Compensation Standards...... 52 4.2.1 Land compensation rates ...... 52 4.2.2 House compensation standards...... 55 4.2.3 House relocation policy ...... 56 4.2.4 Compensation for infrastructures and attachments ...... 56 4.3 Entitlement Matrix ...... 57 Chapter 5 Resettlement and Rehabilitation Plan ...... 59 5.1 Objectives and Tasks...... 59 5.1.1 Resettlement Objectives ...... 59 5.1.2 Resettlement Tasks...... 59 5.2 Resettlement Principle ...... 59

5.2.1 Resettlement Principle...... 60 5.3 Overall Rehabilitation Plan ...... 60 5.4 Analysis of Livelihood Restoration Options ...... 61 5.4.1 Natural Condition and Land Resources ...... 61 5.4.2 Key Features of Affected Persons...... 61 5.4.3 Economic Development Potential of the Affected Area ...... 62 5.4.4 Infrastructure of Production and Living ...... 62 5.5 Rehabilitation Plan for LAR ...... 63 5.5.1 Production Rehabilitation Plan ...... 63 5.5.2 Resettlement Plan for House Demolition ...... 64 5.5.3 Enterprises Rehabilitation Plan ...... 65 5.5.4 Economic Rehabilitation Plan of Significant Affected Villages...... 65 5.6 Rehabilitation Plan for Public Facilities ...... 66 5.6.1 Rehabilitation Plan for Irrigation Channels...... 66 5.6.2 Rehabilitation Plan for Electricity Lines ...... 66 5.6.3 Rehabilitation Plan of Telecom Lines...... 66 5.7 Protection of Vulnerable Groups ...... 67 Chapter 6 Resettlement Budget and Financing...... 68 6.1 Basic Cost...... 68 6.1.1 Land compensation (excluding forest land) ...... 68 6.1.2 Forest land requisition compensation ...... 70 6.1.3 House compensation and resettlement subsidy ...... 72 6.1.4 Infrastructures and attachments...... 72 6.1.5 Enterprise house compensation and resettlement subsidy ...... 73 6.2 Taxes and Fees ...... 73 6.3 Overhead cost ...... 74 6.4 Contingencies...... 74 6.5 External M&E Cost ...... 74 6.6 Overall Budget of the LAR...... 74 6.7 Investment Plan by Year...... 75 6.8 Fund Allocation and Disbursement Procedure ...... 76 6.8.1 Disbursement Principle...... 76 6.8.2 Organizations Responsible for Resettlement Finance...... 76 6.8.3 Funds Flow ...... 76 Chapter 7 Resettlement Institutions ...... 78 7.1 Organization Framework ...... 78 7.2 Responsibilities of Each Organization...... 78

7.2.1 Heilongjiang Qiannen Highway Project Resettlement Office (PRO) ...... 78 7.2.2 County (City) LRMB/PROs...... 79 7.2.3 Forest Bureaus ...... 80 7.2.4 Management Bureau of State Farms ...... 80 7.2.4 Town and Township Government ...... 80 7.2.5 Forest Farms and State Farms ...... 80 7.2.6 Village Committee ...... 81 7.2.7 Survey and Design Institute (Highway DI) ...... 81 7.2.8 External MEA...... 81 7.3 Staffing...... 81 7.4 Measures to Strength Organizational Capacity ...... 82 7.5Training Plan for Management Personnel ...... 82 Chapter 8 Negotiation, Participation and Appeal Process...... 84 8.1 Public Participation ...... 84 8.1.1Purpose of Participation ...... 84 8.1.2Principal Parts of Public Participation ...... 84 8.1.3Principle of Public Participation ...... 84 8.1.4Participation Activities Conducted and Future Plan ...... 85 8.1.5Methods of Public Participation ...... 86 8.2 Public Participation in the Preparation Phase of the Resettlement Plan .87 8.2.1Public Participation in the Pre-feasibility Study Phase...... 87 8.2.2 Public Participation in the Feasibility Study Phase ...... 87 8.2.3 Public Participation during the Process of RP Compilation ...... 87 8.3 Public Participation during the Implementation of RP...... 94 8.3.1 Public Participation in House Reconstruction ...... 94 8.3.2 Participation in Production Rehabilitation...... 94 8.3.3 Participation in the Use of Compensation Fund for Land Acquisition ...... 94 8.3.4 Public Participation during the Implementation Process...... 94 8.4 Disclosure of LAR and Resettlement Policies and RP ...... 95 8.4.1 Publicize Measurement Results of the Project Impact...... 95 8.4.2 State Compensation Policies ...... 95 8.4.3 Preparation and Distribution of RIB for the relocated Households95 8.4.4 Hold Meetings...... 95 8.5 Grievance and Appeal Mechanism...... 95 Chapter 9 Monitoring and Assessment...... 98 5

9.1 Internal M&E ...... 98 9.1.1 Objective and Task...... 98 9.1.2 Organization and Staff...... 98 9.1.3 Monitoring Contents ...... 98 9.1.4 Internal M&E Procedure ...... 99 9.1.5 Reporting ...... 99 9.2 External M&E...... 99 9.2.1 Objective and Tasks...... 99 9.2.2 Organization and Staff...... 99 9.2.3 Main Indicators for M&E ...... 100 9.2.4 M&E Measures ...... 100 9.2.5 M&E Procedure ...... 101 9.3 M&E Report ...... 101 9.3.1 Internal M&E Report on Progress ...... 101 9.3.2 Resettlement Completion Report ...... 103 9.3.3 Independent M&E Report...... 103 Chapter 10 Resettlement Implementation Schedule ...... 105 10.1 Progress links of resettlement and project construction...... 105 10.2 Key Tasks of Permanent Land Acquisition and Temporary Land Occupation...... 105 10.3 Key Tasks of Resettlement for Residents’ House Demolition...... 106 10.4 Overall schedule of land requisition, removal and resettlement ...... 106

Appendix 1 Terms of Reference for Independent External Monitoring...... 108 Appendix 2 Resettlement Information Handbook...... 111 Appendix 3 Relevant Laws and Regulations ...... 124 Appendix 4 Status of Affected Town, Township, State Farm, Forestry Farm...149 Appendix 5 Land Acquisition Tables ...... 156 Appendix 6 Special Resettlement Plan for Villages of Serious Impacts due to Land Requisition ...... 160

LIST OF ACRONYMS AAOV Average Annual Output Value ADB Asian Development Bank AP Affected People CNY China Currency: Yuan DI Design Institute DPA Direct Project Area EA Executive Agency FB Forest Bureau FMB State Farms Management Bureau GDP Gross Domestic Production HH Household HPCD Heilongjiang Provincial Communications Department HPMO Heilongjiang Project Management Office HSSA Heilongjiang Social Science Academy IA Implementation Agency IDPA Indirect Project Area LAR Land Acquisition and Resettlement LG Local Government LRMB Land and Resources Management Bureau MEA Monitoring and Evaluation Agency PMO Project Management Office PRC People’s Republic of China PRO Project Resettlement Office RIB Resettlement Information Booklet RP Resettlement Plan RRA Rapid Rural Appraisal SDAP Social Development Action Plan TA Technical Assistance TG Town or Township Government TOR Terms of Reference VC Village Committee

WEIGHTS AND MEASURES

ha – hectare km – kilometer kg kilogram m – meter m2 – square meter m3 – cubic meter mm – millimeter mu _ 1/15 hectare

Executive Summary

A. Introduction

The proposed Qian-Nen highway is an important corridor in the middle part of Heilongjiang Province. The total project length is 426.71 km, and the total project construction length is 354.6 km. Within the total project length, the expressway length is 278.34 km, and the construction expressway length is 206.23 km. The project also will construct 5.1 km link road to link with town and farms. The project will require a lot of land acquisition and some household relocation. The resettlement planning and implementation is designed to ensure that the affected persons will be better-off or at least not worse-off as a result of the Project. Overall, the land acquisition and resettlement impacts of the Project will be significant. A full Resettlement Plan for the road project and a short Resettlement Plan for the bus station construction have been prepared.

B. Scope of Land Acquisition and Resettlement

The Qian-Nen Highway project will permanently occupied 20，097 mu of land (include 64.1 mu for link road), among which the cultivated land accounts to 7547.5 mu (include 14.3 mu for link road), the forest land accounts to 9484.5 mu, and the other land accounts to 3015.1 mu. The percentage of cultivated land is 37.6% and forest land is 47.3%. Of which the permanently occupied land of main road is 20,032.8 mu, which are 7,533.2 mu of cultivated land, 9,484.5 mu of forest land and others are 3,015.1 mu. The temporary land will reach 2,019 mu, among which the cultivated land is 772.2 mu, the forest land is 534.2 mu, and the wasteland is 712.6 mu. The percentages of the three types are 38.2%, 26.5% and 35.3% separately. The temporary land occupied by main road is 1,998.2 mu. Of which, cultivated land is 772.2 mu, forest land is 531.4 mu and wasteland is 694.6 mu.

The permanent land acquisition will affect about 3,500 households or about 14,000 people. About 10 households and 1 enterprise will be relocated. A total of 1,936.6 m2 brick houses and 242.8 m2 storage buildings will be demolished. In addition, some productive assets, ground attachments, and public infrastructure and facilities will be affected, including electric poles, cables, high voltage tower, well, fence, toilets, road, and trees, etc. Of the total affected population, 2,000 households or 8,000 people affected are rural residents, and 1,500 households or 6,000 persons are state farms’ workers and state forestry farms’ workers.

In order to avoid or minimize land acquisition and resettlement, there was close consultation with the local officials and village committees, forestry farms and state farms during the preliminary and final Feasibility Study stages.

C. Laws, Regulations and entitlement

The compensation of the permanent land loss is based on the Land Administration Law of PRC(1998) and the Implementation Regulations of Integrated Price for Land Acquisition Based on the Region and Location of Heilongjiang Province, 2009. The house demolishment is based on the negotiation with the affected people and refers to the local resettle price. The RP prepared comply with PRC laws and regulation of resettlement of Heilongjiang Province and ADB’s Policy on Involuntary Resettlement. Based on the consultations with local governments and those affected, and the Integrated price of the area, a set of compensation standards was adopted by the respective city and county project management offices and implementing agencies. The resettlement principles established for the Project are (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives; for instance, the road alignment avoided to cross the populous town set; (ii) compensation and entitlements provided are based on integrated land price or replacement value and must be adequate to allow those affected to at least maintain their pre-project standard of living, with the prospect of

9 improvement; (iii) land temporarily occupied and the period for disruption are to be kept to a minimum; (iv) the per capita landholding after land acquisition will be sufficient to maintain the previous livelihood standard; (v) where land allocation per capita is not sufficient to maintain the previous livelihood standards, other income-generating activities will be provided for; (vi) a preferential policy will be provided to vulnerable groups in such things as compensation, payment of special fund, minimum living guarantee, and employment; (vii) all those affected will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans, and project timing; and (viii) close monitoring and timely actions will be carried out to identify and resolve any problems.

D. Consultation and Grievance Redress

The people affected will be notified about the key elements of the RP prior to ADB loan appraisal. On various occasions during meetings, interviews, group discussions, public consultation workshops, and community consultation meetings, local representatives have participated in the planning and concerns have been integrated into the RP. The information booklet of the project also will be distributed to affected villages and households. And the RP also will be provided to forestry farms, state farms, and affected villages. The respective city and county will establish project resettlement units for supervising implementation, continuing public consultation, monitoring progress and responding to grievances. The grievance address procedures will be established and the explanations will be included in the resettlement information booklets.

E. Resettlement Strategy

For land acquisition, based on the integrated land price, 30% of the land compensation will be paid in cash to the affected villages to be used as the basic infrastructure improvement, and 70% of the land compensation will be paid to affected households directly. For residential houses and non-residential houses to be demolished, compensation will be paid to owners. The payment will be made in cash according to the appraised value of the property. The households that have to relocate will also receive a relocation allowance. Compensation for standing crops, auxiliaries and other assets will also be paid directly to the affected units and households.

The resettlement strategy encompasses (i) the restoration of livelihoods and income, and (ii) the replacement of housing. For people losing housing, house demolition compensation will be paid in cash to the affected households, meanwhile, house plot for house construction also will provided to them to construct new houses. Assistance will be provided to construct new houses or find available housing close to their original community, if that is their preference. The respective city or county PMO and local governments will provide necessary assistance for house construction and relocation during resettlement implementation.

Among the affected villages and towns, the maximum average farmland per capital is 19.9 mu, and the minimum is 4.6 mu, and the average is about 11 mu or so. Because road occupation distributing along the road as strips, so there is few land occupation for affected families really, and it affects not greatly. Averagely speaking, 7.5% farmland per capital will be acquired in each affected household. Even if the affected families lose 10% of their farmland, land acquisition would not result in the serious influence in these villages because there is an abundant area of farmland area for most affected villages. Based on analysis, there are only 13 village groups which land acquisition is over 3% of original farmland in 35 affected village groups and 8 village groups which land acquisition is over 4%, and only 2 over 6%. It would not result in upheaval in their lives to reduce few farmlands. On the contrary, the development opportunity brought after building road and compensation for land acquisition can make them participate into various non-agricultural production more actively, creating the new opportunity to improve their income.

The measures for economic rehabilitation include: (i) 70% of the land compensation will be paid to affected household, and they can use these money to hire farmland from state farms nearby; (ii) provision of employment opportunities during the project construction phase; (iii) preference policy (credit, tax, etc) will be provided to the APs by the local government to encourage them to engage other sectors, such as small business; (iv) agricultural technique and non-agricultural skills training will be provided by local government. The 5 affected county or city governments all ensure that the APs will have the priority to be trained each year and the training budget will be provided by the county government; and (v) after the completion of the highway, the affected households will be given priority to be employed in the routine maintenance of the highway.

F. Vulnerable Groups

Based on the survey, absolute poor households are not finding in the sample households. However, some of old solitary people are found in the sampling households. They are vulnerable group in community. For these affected people, the policy of “Provisional Measures of Old-Age Insurance for Peasants Involved in Land Requisition in Heilongjiang Province” can be adopted to help them. Once they get the social security, their livelihood will be guaranteed.

G. Institutional Arrangement

Respective city, county, farm, forestry farm PMO will have at least 1 full-time staff responsible for land acquisition and resettlement. They will work closely with relevant village officials, land administration bureaus and will be responsible for supervision and monitoring of resettlement.

H. Resettlement Costs

The cost estimate for land acquisition and resettlement is about 48 million USD, equivalent to CNY 325.9 million in the exchange rate of 1 USD = 6.8 CNY, including contingencies (Table 1). Resettlement implementation will be scheduled to precede the project construction schedules. See Table 2.

I. Monitoring and Evaluation

Internal and external monitoring of RP implementation will be conducted. Monitoring methodologies are specified in the RP. Internal supervision and monitoring will be done by each county, city, farm, and forestry farm PMO to ensure compliance with the provisions of the RP. The PMO and IA have agreed to a set of supervision milestones with ADB, to ensure timely and effective implementation of resettlement activities (see table 9). External monitoring and evaluation will be carried out by an independent agency under contract to the PMO/IA. External monitoring reports will be forwarded directly to both the PMO and ADB

Table 1 Resettlement Cost of Qiannen Highway Project Compensation cost (million CNY) Item Main Link subtotal road road Basic Compensation for permanent land I 120.002 0.735 120.737 Cost acquisition

Compensation for temporary land use 7.103 0.058 7.161

Compensation for forest land 141.283

Compensation cost (million CNY) Item Main Link subtotal road road House compensation and movement 1.173 subsidy Enterprises’ house compensation and 0.055 movement subsidy Compensation for Infrastructure and 11.4998 attachments

Total of basic cost 281.9088

II Taxes and fees 22.816

III Overhead cost (1% of the basic cost) 2.8191

IV External M&E cost (0.5% of the basic cost) 1.4095

V Contingency（6% of the basic cost) 16.9145

Total 325.87

Staff Training 0.252*

*Training cost will shared by the Local Government and related Provincial Department, not included in the total budget.

Table 2. The implementation schedule of Resettlement Plan

Item Scheduled progress I. Land Requisition 2009.10.1~2011.12 1. Issuance of Resettlement Information Handbook 2009.1 2. Publish compensation criteria 2009.1 3. Detailed investigation and measurement (cut-off date) 2009. 3~4 4. Negotiation and determination of compensation amount 2009.1~10 5. Land requisition compensation payment 2009.10-2010.5 II. Rehabilitation of production losses 1. Formulate land adjustment measure and detailed plan, make 2009. 1-3 negotiation with affected people. 2. Land reclamation plan 2009.5 3. Land adjustment implemented 2009.5-2010.5 4. Other economic rehabilitation measures implemented 2009.5-2011.5 III. House removal and relocation 1. Investigation of affected assets and valuation 2009.3 2. Publish investigation results in announcement board and inform 2009.3 affected people 3. After negotiation with household, conclude a compensation 2009.3-10 agreement of house relocation 4. Select homestead land 2009.5

Item Scheduled progress 5. House compensation payment 2009.10 6. Level homestead land 2010.5 7. Build new houses 2010.5-10 8. Move into new houses 2010.7-10 9. Remove old houses 2010.7-10 IV. Special facilities rehabilitation 2010.5-10 V. Monitoring and Supervision 1. Internal monitoring and supervision and quarterly reporting 2009.12 2. External monitoring and evaluation (M&E) and reporting - Base Survey and Report 2009.10-12 - First semi-annual M&E Report 2010.04-05 VI. Commencement of Civil Works 2010.05

Chapter 1 Project Overview 1.1 Foreword 1. In accordance with laws and regulations of P.R.C, ADB policies on involuntary resettlement, other principles regarding social securities and related social aspects, this resettlement plan is developed in reference to PRC’s laws/regulations and local governments’ policies on land acquisition and resettlement. This plan describes a policy framework to mitigate the adverse impacts caused by the planned Qianfeng Farm to Nenjiang Highway Project through series of remediation measures. Also the resettlement plan for the affected people and rehabilitation plan for the seriously affected villages are involved in the framework including how and when to take these measures. 2. As ADB and IA are concerned, the primary purpose of resettlement plan is to ensure the people who unavoidably lose lands or properties in the development program have the same or better livelihood and living standards compared with that under “non-projects” situations. All the policies, suggestions and compensation measures in this resettlement plan are oriented to this purpose. The implementation agency has set up Qian-Nen Road project resettlement Leading Group and Office to construct and manage this Project. The resettlement office of the Project will directly assume the responsibility for the preparation, implementation, internal monitoring and financing of the resettlement plan. 3. The RP includes all of the contents in various aspects of land acquisition, relocation and resettlement induced by the planned Project. 4. The RP is prepared out on the basis of preliminary design report of the Project and the public participation in the affected area and the socio-economic survey in the relocated area. 5. The RP is compiled on the following basis, (i) Land Administration Law of People’s Republic of China, 2004 (ii) Forest Law of People’s Republic of China, 1998 (iii) Land Administrative Regulations of Heilongjiang Province, 2000 (iv) Notice on issues relating to regularize and adjust compensation criteria for occupied forest land promulgated by Forest Department, Price Bureau and Financial Department of Heilongjiang Province (H.L.L.F.[2007] No.185 dated December 17, 2007). (v) Notice on Issuance of “Tentative Method for levy, Utilization and Management of Forest Vegetation Rehabilitation Fee” of Ministry of Finance and State Forest Administration Bureau dated October 25, 2002, C.Z.[2002] No.73ltivation fee collection and use regulations of Heilongjiang Province, 2001 (vi) Heilongjiang Province Implementation Method of Regional Land Acquisition Integrated Price, 2009 (vii) Notice issued by Heihe Municipal Government for Implementation of “Standard of Area Integrated Price for Land Requisition of Heihe City”, December, 2008 (The regulations are same with the provincial policy) (viii) Notice to Unite Farmland Occupancy Tax Rate for Highway Construction, Ministry of Financial, 1989 (ix) Heilongjiang Management Methods of Accepting and Using Farmland Reclamation Fee, 2001 (x) Heilongjiang Basic Agricultural Land Prevention Regulations (Revised), 1995

(xi) The notice of print and distribution the regulation of ‘ The standards of Farmland re-cultivation fee collection of Heilongjiang Province’, 1991 (xii) The notice of print and distribution the regulation of ‘Land management fee collection regulations of Heilongjiang Province’, 1995, Land Administration Bureau, Price Bureau, Finance Department of Heilongjiang Province. (xiii) Provisional Measures of Old-age Insurance for Peasants Involved in Land Requisition in Heilongjiang Province, 2008 (xiv) Heilongjiang Provincial Farmland Occupation Tax Regulation, 2008 (xv) ADB’s Involuntary Resettlement Policy, 1995 1.2 Project Introduction 6. The highway Qianfeng Farm – Nenjiang passes through the province from west to east, traverses the Sanjiang Plain and the hinterland of Xiaoxinganning, and connects with Nenjiang Plain. The distance of the highway accounts to 824km. In the northern center area, the route will pass across five regions including Jiamusi, Hegang, Yichun, Suihua and Heihe, connect with Daxinganling area, and later link to such 8 framework highways as Longitudinal 1, Longitudinal 2, Radiant 4, Radiant 3, Radiant 2, Longitudinal 6 and Horizontal 1. In addition, it will link 6 highways (Suibin – Jiamusi, Jinshantun – Tieli, Suihua – Bei’an, Wudalianchi – Nahe, Nenjiang – Heihe, and Nenjiang – Laodaodian). The proposed highway will become an important passageway from west to east in northern area of Heilongjiang Province.

7. The project actual mileage and highway section: The project actual mileage and highway section are as follows, see table 1-1:

Table 1-1 Construction and Class Level of Proposed Project

No Description Classification Length (km) Connecting Point Remark 1 Expressway 163.63 Zhaoguang Interchange Note 1 Yichun ‐ Bei'an East 2 Bei'an East ‐ Bei'an North Expressway 72.11 Zhanhe Interchange 10.47 Class II (Exist) Longzhen 3 Bei'an ‐ Wudalianchi Expressway 42.60 Jianhua Interchange Note 2 4 Bei'an North to Nenjiang Class II 135.49 Longzhen 5 Nenjiang to Province Border Class I 12.88 G111 Intersection Note 3 6 Branch Road Class I Nenjiang Branch 3.31 G111 Intersection to Nenjiang Class III 1.06 Geqiushan Branch Intersection @ K40+60 Class III 0.73 Qixingpao Branch Intersection @ K51+600

Total Expressway Length = 278.34 km Total Construction Expressway Length =206.23 km Total Project Length = 426.71 km Total Project Construction Length =354.60 km Total Branch Road Length =5.10 km

Note 1. The proposed roadway shares with Ji‐Hei Expressway from Zhaoguang Interchange to Zhanhe Interchange, and uses the existing Class II road from Zhanhe Interchange to Longzhen to start the new Class II segment. 2. The expressway starts the shared section with Ji‐Hei Expressway from Zhaoguang Interchange to Jianhua Interchange, and continues to Huanxingling Toll Plaza at Wudalianchi GeoPark. The section includes 11.93 km Class I road as a transition to the existing Class II road at the Wudalianchi GeoPark.

3. The segment ends at the end of Nenjiang Bridge in Inner Mongolia. The segment is built as Class I road with intention to upgrade to expressway in future. 1.3 Project affected area 8. The definition of the project area is grouped into three parts. The first part is the area along the proposed project alignment that is affected by the land acquisition and house demolishment. The second part is a corridor with about 20 km width on each side of the project highway from Cuiluan Forestry District of Yichun City in east to Nenjiang County of Heihe City in west. This area is called as the Direct Project Area (DPA) and includes 48 towns/ townships/ forestry farms/ state farms. This will be addressed in the Social Impact Analysis Report. And the third area is all 5 counties/cities/districts, which is called the Indirect Project Area (IDPA). Table 1-2 shows the basic natural characteristics of IDPA of the Project. The project will affect 4 counties (cities) and 1 municipality. The beneficiary population will be 2.487 million, and the affected area will be 56,053 km2. Figure 1 shows the road map of Heilongjiang Road II project.

Table 1-2: Basic Natural Characteristics of IDPA of the Project

Total Population County/City Total Area No. of Towns/ No. of Population Density /District (km2) Townships Villages (10,000) ( person/km2) Cuiluan District 1,561 5.4 4 N.A* 34.6 Suiling County 4,238 33 11 76 77.9 Bei’an County 7,194 47.1 9 62 65.5 Wudalianchi 37.2 9,846 36.6 11 96 City Nenjiang 33.4 15,109 50.4 13 142 County Total of IDPA 36,387 172.5 44 376 45.9

9. The regions directly affected by the project involve towns with jurisdiction of 4 counties and 1 municipality, 3 forest bureaus of Heilongjiang Forest Industry Bureau, 6 farms bureau under 2 farms of Province Agricultural Reclamation Bureau, 3 prison farms of Provincial Judicial Department and 1 logistics base of Provincial Military Command. It will directly affect more than 650,000 people (the population of all the forestry bureau and state farms, towns and townships the proposed road will directly pass through), shown in following Table 1-3. Table 1-3 Population Distribution of Directly Affected Area

Area Number of HH Population Percentage

Forestry Bureaus 50613 128377 19.7%

State Farms 123012 361191 55.3%

Towns and Townships 48520 163130 25.0%

Total 222145 652698

Figure 1: The Location of Heilongjiang Road II Development Project

1.4 Measures on reduction of resettlement

1.4.1 Measures on minimized land requisition 10. Taking full consideration of the local governments’ demands on the highway, PMO has entrusted Design Institute to carry on several reconnaissance and verification, and then after full verification with Heilongjiang Development and Reform Committee, Heilongjiang Provincial Communication Department, technical assistance (TA) experts of ADB, the final program of the highway direction is determined. Mainly it observed the following principles: i. The highway does not directly go through cities, towns and townships, or populous villages; nor does not affect schools, hospitals, mines and large-scale enterprises. ii. The highway is constructed far away from the scenic resorts and protected historical and cultural sites. iii. The highway alignment minimizes farmland acquisition as much as possible using the land with low economic value such as deserted hills, beaches, wasteland and existing roads as much as possible. iv. The highway is constructed far away from the villages and townships with quite small average land per capita as much as possible. v. The highway is constructed far away from nature, reserve areas and the Wudalianchi geo park.

1.4.2 Measures on route optimization 11. The route alignment in the feasibility study report has fixed some important sections in advance so they will not to be affected in advance. After that, the highway direction plan was preliminarily determined on the basis of comprehensive analysis on engineering, environmental protection, resettlement, etc. 12. On the basis of the preliminary design, we carried out site investigation, collected information with regard to surface relief, sightseeing, ancient relics, mineral source and economic development program, and asked local government and residents for opinions on the alignment of the highway. 13. We calculated the quantity of land requisition and relocation, asked local residents for opinions, and deeply investigated the local social economy. In addition, we carefully made investigations on the present situations of population, rural land, cultivated land, population structure and economy in different land acquisition area. 14. When choosing sites of service area or temporary works, a joint investigation was made by the design institute, local government and land sector to minimize the use of cultivated land. 15. After analysis and comparison mentioned above, we adjusted the plan on the basis of local farmers’ opinions and then finalized the resettlement plan. 1.5 Project preparation and compilation of resettlement plan 1.5.1 Project design (1) Project pre-feasibility study 16. In early 2006, Communications Department of Heilongjiang Province decided to pursue ADB loan for the section Yichun – Nenjiang of the project Qianfeng Farm – Nenjiang.

In March 2006, it entrusted provincial highway survey and design institute to prepare a feasibility study report. 17. In August 2006, the project working team carried out site investigation on alignment of the route, key control nodes, technical standard and construction size and prepared a recommended plan. 18. In 2007, consultation meetings were held with local cities along the proposed route. (2) Project feasibility study 19. On June 20, 2008, the provincial highway survey and design institute completed compilation of project feasibility study report. 20. From June 18 till June 28, 2008, the project feasibility study report was preliminarily reviewed. 21. On July 13, 2008, the design institute finalized the project feasibility study report based on experts’ opinions. (3) Preliminary design 22. In November 2008, the project preliminary design report was formulated. 23. In February 2009, ADB officials assessed the preliminary design report and presented recommended improvements. 24. The resettlement planning was prepared and revised based on the preliminary design report. (4) Construction drawing design and the revised road alignment in April, 2009

1.5.2 Compilation of resettlement planning 25. In September 2008, project preparations. The work at this stage mainly concludes: (a) prepared work procedure and work plan; (b) held 15 work conferences such as workshop, coordination meeting and demonstration meeting; and (c) formulated investigation plan for key problems of content and structure in relation to resettlement planning. 26. In December 2008, site investigation. The investigation team carried out investigation to 4 counties and 1 municipality and towns, villages, forest bureau and its forest farms, state farms of provincial General management bureau of state farms and its branches and affected enterprises and institutions along the route. 27. The project study team adopted different measures including investigation table, questionnaire and villager meetings, thereby collecting over 1000 written materials. 28. In December 2008, the draft resettlement planning was compiled, and the project report started to be analyzed, calculated and prepared. A smooth cooperation was run between 5 studying team members and 12 investigation team members. The outcome data from investigation activities were used to calculate resettlement population number, assess social impacts, determine compensation criteria and compile the project report. 29. In January 10, 2009, the preliminary Resettlement Plan was submitted to the highway project office. 30. With guidance and assistance of ADB resettlement expert, the Resettlement Plan was revised. From February 18 till 21, 2009, a secondary investigation was held for key affected villages, farms and forest bureaus; also, a rehabilitation plan was formulated, and the revised draft Resettlement Plan was completed on April , 2009 and submitted to ADB for review. 31. Based on the comments of ADB resettlement expert, the Resettlement Plan was finalized and submitted to HPCD to approve and then, submit to ADB.

Chapter 2 Project Area’s Economic and Social Situations 2.1 Administrative Zoning in Affected Area 32. In order to understand the social & economic situation in the affected area and livelihood status of affected people, the project office entrusted the Academy of Social Sciences of Heilongjiang Province (HSSA), according to requirement of ADB, to carry out an investigation on social and economic situation in the affected area on the basis of the project proposal and the project feasibility study, HSSA provided basic information to the project analysis. In addition, a sampling survey was conducted for 411 households. The investigation was made by means of questionnaire and interview. The investigation and the data submitted by Statistics Bureau of Heilongjiang Province and statistics office at county level, Yichun City, Suiling County, Bei’an City, Wudalianchi City and Nenjiang County were used to estimate the people to be directly affected by the proposed project. The natural and social & economic conditions in the affected area were as described in the following subsections. For administrative jurisdiction in the affected area (the proposed road will affect the land or houses), please refer to Table 2-1. Table 2-1 Administrative Jurisdiction in the Project Affected Area City or County Administrative title Administrative Jurisdiction Changfu Township Haijiang Township Nenjiang Heihe City Nenjiang Town County Municipality Sishilihe Forestry Center Nenjiang County Nenjiang Farm Provincial General 93 Management Management Bureau Qixingpa Farm Bureau of State Farms Shuangquan Town Wudalianchi Heihe City Xinfa Township City municipality Xinglong Township Geqiushan Farm Provincial General Weishan Farm 93 Management Management Wudalichia City Bureau Yinlonghe farm Bureau of State Farms Wudalianchi Military Farm Military Military Huayuan Farm Yongfeng Farm Provincial Justice Department Fenghuangshan Farm Bei’an City Erjing Town Heihe City Zhaoguang Township Bei’an City Municipality Chengjiao Township

Hongxing Farm Provincial Provincial General General Management Management Bureau of State Bureau of State 20

City or County Administrative title Administrative Jurisdiction Farms: Bei’an Farms branch Tongbei Forestry Bureau Provincial Songhuajiang Forestry Suiling County Suiling Forestry Bureau Forestry Bureau Industry Bureau Yichun City Yichun City Cuiluan Forestry Bureau Municipality

2.2 Social & Economic Status in the Affected Area 2.2.1 Land Area and Population 33. The highway is designed to pass across Yichun City, Bei’an City, Wudalianchi City, Nenjiang County and Suiling County. The total population in the affected area is 2.487 million, accounting for 6.5% of the provincial total. The total area is 56,053 k m2, accounting for 12.3% of the provincial total. The statistic indicators are directly used from Yichun City level, excluding counties and cities level under jurisdiction of Yichuan City. Table 2-2 shows indicators by county/city. Table 2-2 Administrative Information of Each City and County Number of Number of County Land Area Population Village Townships and (city）（sq.km）（10000 person） Committee Towns (Districts） s Bei’an City 7194 47.1 9 62 Wudalianchi 9846 36.6 11 96 City Nenjiang 15109 50.4 13 142 County Suiling County 4238 33.0 11 76

Yichun City 19576 81.6 15 *

Province 454000 3824 * * Source from Heilongjiang Statistical Yearbook 2008 * Data are not available

2.2.2 Regional Gross Value of Production 34. The gross domestic production (GDP) in the project area is CNY 22.99 billion, accounting for 3.3% of the total GDP in Heilongjiang Province. The per capita GDP in the affected area is lower than provincial average, among which the per capita gross value of production in Suiling County is the lowest, less than 1/3 of the provincial average level. See Table 2-3.

Table 2-3 GDP of Each County (City) in 2007

GDP GDP per capita County Year (100 million CNY) (CNY)

Bei’an City 36.0 7639

Nenjiang County 60.0 11941

Suiling County 17.0 5173

Wudalianchi City 26.9 8958

Yichun City 90.0 10858

Province 7065.0 18478

Source from Heilongjiang Statistical Yearbook 2008

2.2.3 Population status 35. Among the cities and counties along the route, the income in Yichun City is mainly focused on forest economy. The forest bureaus are responsible for forest industry in different districts. The staff members of forestry bureaus and State farms are non-agricultural population. As a result, the ratio of rural population in Yichun City seems low, just accounting for 4.2%. In Wudalianchi City, it is lower due to greater number of State farms directly under central and provincial management. The rural population in other counties is equivalent to or slightly higher than provincial average level.

Table 2-4 Population and percentage of project area in 2007 (unit: 10,000 persons) Population Population Rural County or Urban Rural of State of Population population city population population Farms Forestry percentage Bureaus Bei’an 47.1 27.7 19.4 41.2% 15.8% 6.4% Nenjiang 50.4 26.8 23.6 46.8% 27.0% 0 Suiling 33.0 13.1 19.9 60.3% 0 6.2% Wudalianchi 30.0 18.7 11.3 37.7% 33.0% 9.6% Yichun 81.6 78.2 3.4 4.2% 0 100% Province 3824 2061 1763 46.1% - - Source: Year book of Heilongjiang, 2008

2.2.4 Employed Population Distribution Among Different Sectors 36. The statistics of employment are mainly focused on non-agricultural population. According to Table 2-5, the employment in Bei’an City, Wudalianchi City, Nenjiang County and Suiling County are mainly distributed in the first industry and the 3rd industry. It clearly shows less industrial employment. The distribution proportion of employment in Yichun City is successively decreased in 1st, 2nd and 3rd industry. It shows that agriculture, forestry and forestry processing are the main employment sectors for local people.

Table 2-5 Employment by Sector (unit: 1,000 persons) Number of County Primary Secondary Tertiary Employed (City) Sector Sector Sector Person

Bei’an City 24.6 7.0 3.6 13.9

Wudalianchi City 27.6 15.3 0.5 11.8

Nenjiang County 21.1 2.8 5.3 13.0

Suiling County 20.1 7.8 1.1 11.2

Yichun City 174.0 83.0 61.0 30.0

Province 18276.0 7987.0 3952.0 6337.0 Source from Heilongjiang Provincial Statistical Yearbook 2008

2.2.5 Industrial Structure Ratio of Employed population 37. The employment people along the route are mainly distributed in 1st and 3rd industry. The ratio of 3rd industry employment people in Nenjiang County is relatively greater. In 1st industry, the ratio of employment people in Yichun City is slightly greater than that of provincial average level. In 2nd industry, the ratio of employment people in Yichun City is higher than that of provincial average level. The ratios in other counties are apparently lower than that of provincial average level, shown in table 2-6. Table 2-6 Table of Percentage of Employed Person by Industry (%) Primary Secondary Tertiary County (City) Industry Industry Industry

Bei’an City 28.5 14.6 56.5 Wudalianchi City 55.4 1.8 42.8 Nenjiang County 13.3 25.1 61.6 Suiling County 38.8 5.5 55.7 Yichun City 47.7 35.1 17.2 Province 43.7 21.6 34.7 Source from Heilongjiang Provincial Statistical Yearbook 2008 2.2.6 Cultivated land area 38. Except for Yichun City, the per capita cultivated land area in other cities and counties are higher than that of provincial average level. The forest mainly occupies in Yichun City, the cultivated land area is relatively less. The indicators in Bei'an City, Wudalianchi City and Nenjiang City are higher than the provincial average of 10 mu. The indicator in Suiling County is lower than it. The indicator in Nenjiang County is two times than that of provincial average

Table 2-7 Land Area and Land Area per Capita of Each City and County (Unit: mu) Cultivated Land Cultivated Land Cultivated Land County (City) Area per Rural Area Area per Capita Person Bei’an City 2,322,759 11.9 4.9

Wudalianchi City 1,666,012 14.8 4.8

Nenjiang County 4,703,793 19.9 9.4

Suiling County 1,655,007 8.3 5.1

Yichun City 2,940,015 - 2.3

Province 175,500,000 10 4.6 Source from Heilongjiang Provincial Statistical Yearbook 2008

2.2.7 Gross agricultural output value structure 39. In the primary sector, the agriculture (planting industry) in Bei’an City, Wudalianchi City, Nenjiang County and Suiling County has occupied the most. It shows that planting industry is still the main production activity for local farmers, shown in Table 2-8. Forestry and animal husbandry are of much less importance in terms of value. Table 2-8 Output Value of Primary Sector (unit:10,000 CNY)

Animal Husbandry County (City) Total Farming (%) Forestry (%) Fishery (%) (%)

Bei’an City 158,578 130,880(83%) 6,676(4.2%) 20,178(12.7%) 774(0.5%)

Wudalianchi City 151,361 113,744(75%) 18,050(11.9%) 16,740(11%) 2,022(1.3%)

Nenjiang County 271,419 228,660(84%) 3,111(1.1%) 39,310(14.4%) 338(0.1%)

Suiling County 132,312 88,559(67%) 13,517(10.2%) 25,986(19.6%) 3,330(2.5%) 45,984 1,447 Yichun City 160,782 81,034(50.4%） 32,156（20%）（28.6%）（0.95%） Source from Heilongjiang Provincial Statistical Yearbook 2008

2.2.8 Income of rural and urban residents 40. The three indicators of staff and workers along the route including average wage, per capita disposable income of rural and urban residents, and per capita end-year deposit balance of rural and urban residents are lower than that of provincial average level. It shows that the income of rural and urban residents along the route is relatively lower. Among which, the farmer per capita net income in Nenjiang County is slightly higher than that of provincial average level. The farmer per capita net income in Suiling County is only 2,800 CNY, accounting for less than 2/3 of that of provincial average level.

Table 2-9 Income of Each County and City (unit：CNY) Annual Per Annual Per Per Capita Capita Capita Balance of Disposable Disposable County (City) Average Salary Saving Deposit Income of Income of of Urban Urban Rural Households Households Household

Bei’an City 14,717 6,886 9,579 4,003

Wudalianchi 11,834 5,975 8,538 4,067 City Nenjiang 17,308 7,075 8,148 4,356 County

Suiling County 11,999 4,340 5,279 2,800

Yichun City 9,658 7,415 8,813 4,675

Province 19,386 10,245 11,712 4,132

Source from Heilongjiang Provincial Statistical Yearbook 2008

2.2.9 Per capita financial revenue and expenditure 41. The financial status along the route is relatively poor. The per capita general budget revenue is much lower that the provincial average. Among which, the revenue in Suiling County is as low as CNY86 per capita. The ratio of financial revenue and GDP along the route is lower than that of provincial average level. It shows that the local economic benefit is lower than the provincial average. The per capita general budget expenditure is lower than the provincial average. However, the ratio of financial expenditure and GDP has become higher. It shows that the flexibility of financial expenditure scale becomes poorer (see Table 2-10) Table 2-10 Financial Income and Expenditure of Each County and City (unit: CNY) General General Percentage of Percentage Budgetary Budgetary Financial of Financial County (City) Financial Financial Revenue to Expenditure Revenue per Expenditure GDP to GDP Capita per Capita Bei’an City 198 2.6% 1,774 23.2% Wudalianchi City 101 1.1% 1,420 15.8% Nenjiang County 184 1.5% 1,174 9.9% Suiling County 86 1.7% 1,501 29.1% Yichun City 260 2.4% 1,695 15.4% Province 1,515 8.2% 2,533 18.8% Source from Heilongjiang Provincial Statistical Yearbook 2008

2.2.10 Education status 42. The education status in affected cities and counties is in the good level, see table 2-11. Table 2-11 Table of Education Information of Each County and City Number of The Enrollment Number of Students in The Enrollment Rate of Students in County (City) Regular Rate of Primary Secondary Primary Secondary School School Schools School Bei’an City 24,470 99.5 28,773 99.1

Wudalianchi City 16,859 99.7 24,062 99.5

Nenjiang County 27,589 99.8 31,728 99.3

Suiling County 20,378 99.6 21,431 99

Yichun City 42,000 99.6 35,000 100

Province 1,715,000 99.5 1,937,000 98.7 Source from Heilongjiang Provincial Statistical Yearbook 2008 2.3 Household Sampling Survey in Affected Area 2.3.1 Sample Analysis 43. The 411 effective samplings mainly come from Bei’an City, Wudalianchi City and Nenjiang County. The samplings from Suiling County and Yichun City account for 17% of the total. The reason is that the most areas in Yichun City and Suiling County is forests; the region the highway passes through is forestry farm where there is less population and the population density is lower, the most local people are employed by forest bureau, they are state-owned staff and workers whose economic income comes from wage income, so the influence of the project land acquisition is minimal compared to other counties, shown in table 2-14. Table 2-12 Survey Sample Distribution

City or County Number of Sample Percentage

Bei’an City 49 12%

Nenjiang County 91 22%

Wudalianchi City 201 49%

Suiling County 33 10%

Yichun City 37 7%

Total 411 100%

2.3.2 Cultivated Land Status of Sampling Household 44. According to the survey, the local farmer’s per capita cultivated land area and household-owned cultivated land area in Bei’an City, Nenjiang County and Wudalianchi City are consistent with the government statistics. As the samplings in Suiling County and Yichun City come from staff and workers of forest bureau, the production mode mainly focused on forest industry and agricultural sideline operation; therefore, the per capita cultivated land area and household-owned cultivated land area are quite different with the government statistics. Table 2-13 Cultivated Land Area of Sampling Household Unit: mu Cultivated Land Area of Per Capita Cultivated City or County Household Land Area Bei’an City 43.6 13.2 Nenjiang County 47.5 15.8 Wudalianchi City 35.7 11.1 Suiling County 14.1 3.2 Yichun City 4.1 1.2 Provincial (Rural Person) 11.8

2.3.3 Rural People Per Capita Income 45. The per capita gross income comes from planting industry, equals to the total sum of labor force income, direct grain subsidies income and planting industry income. As for per capita labor force income, the per capita labor force income in the project area (CNY774) is relatively higher than the average level in Heilongjiang Province. The per capita labor force income in Nenjiang County seems slightly lower because the per capita cultivated land in this area is relatively larger and the farmers spent more time on agricultural activities and have no time to go outside working. According to samplings, the farmer per capita net income in Wudalianchi City and Suiling County is lower than the provincial average. On the other hand, the farmer per capita net income in Bei’an City, Nenjiang County and Yichun City are apparently higher than the provincial average. Table 2-14 Rural Income per Capita (Unit: CNY) Per Capita Annual Per Capita Annual Per Capita City or County Non-farming work Gross Income Net Income Income Bei’an City 10823 890 4648 Nenjiang County 11326 578 4883 Wudalianchi City 8505 777 3754 Suiling County 8320 678 3254 Yichun City 8460 694 4149 Provincial 7732 774 4132

2.3.4 Planting Sector Revenue and Expenditure 46. According to per-mu income of planting industry, the production efficiencies in different regions are equivalent. The per-mu income in Suiling County and Yichun City are slightly lower because of local restricted production conditions. Table 2-15 Per-mu Income of Planting Sector CNY

Gross Income Expenditure for Net Income from City or County from Planting Planting Planting

Bei’an City 707 458 249 Nenjiang County 692 433 259 Wudalianchi City 674 442 232 Suiling County 654 437 217 Yichun City 679 449 230

2.3.5 Sampling household per capita income structure 47. According to the survey, the main household income comes from crop planting, accounting for 88% of the total. The ratio of wage income accounts for 8% of the total. Due to government measures, the direct grain subsidies accounts for 4% of the total. According to structure of gross income, crop planting has become the main production mode. But within the net income, the net income ratio of planting industry in household is apparently lower than that in gross income due to the large of costs of planting sector. On the other hand, the ratio of income from labor force and breeding industry is higher than that of planting industry within the family net income. Table 2-16 Percentage of Gross Income Structure unit: CNY

Income Item Percentage

Wage Income 8%

Income from Planting 88%

Direct Subsidy for Grain 4%

2.3.6 Sampling household per capita expenditure 48. The per capita total expenditure size of sampling household is lower than that of provincial average level. The lowest exists in Suiling County as low as 2370 CNY. The highest exists in Yichun City as high as 2690 CNY, 420 CNY lower than that of provincial average level. It shows that the living standard of the local people along the proposed highway route is still relatively low.

Table 2-17 Expenditure Per Capita (unit: CNY) Per Capita Total City or County Per Capita Living Expenditure Expenditure

Bei’an City 8802 2627

Nenjiang County 9116 2673

Wudalianchi City 7002 2512

Suiling County 6720 2370

Yichun City 7510 2690

Provincial average 7631 3117

2.3.7 Gender structure of sampling household 49. The proportion of male and female in sampling household is 55:45, which is equivalent to that of provincial average value. It has become an important factor of local social harmony. Table 2-18 Gender Structure

City or Male Female Total County Population Percentage Population Percentage Bei’an City 100 56% 79 44% 179 Nenjiang 177 54% 151 46% 328 County Wudalianchi 366 55% 294 45% 660 City Suiling County 64 56% 51 44% 115 Yichun City 65 54% 53 46% 118 Total 772 55% 628 45% 1400 2.3.8 Age structure of sampling household 50. The population aged from 18 - 60 accounts for 69% of the total. It shows that the status of labor force in sample households is relatively better. The population aged over 60 accounts for 15% of the total. It shows the pension expenditure in sampling household will increase in the future. Table 2-19 Age Structure

Age Category Population Percentage

Childhood： 0- 6 45 4% Youth： 7-17 141 12% Youth and Middle Age：18-60 810 69% Old： 60 over 171 15%

2.3.9 Sampling household ethnic minority status 51. The ethnic minority population in the affected area along the route is not many, accounting for 3.65% of the total. Table 2-20 Ethnic Minority Household Bei’an Nenjiang Wudalianchi Suiling Yichun District Total County County City County City Sampling 49 91 201 33 37 411 Household Ethnic 6 3 3 1 2 15 Household Percentage 12.24% 3.30% 1.49% 3.03% 5.41% 3.65%

2.3.10 Vulnerability status of sampling household 52. There are not absolute poor residents in sampling households. However, greater numbers of old solitary people are found in the sampling households. They are vulnerable group in community. Therefore, they shall be helped in progress of land requisition and resettlement. Table 2-21 Vulnerability Status of Sampling Household Bei’an Nenjiang Wudalianchi Suiling Yichun District Total County County City County City Sampling 49 91 201 33 37 411 Household Old Solitary 5 12 15 6 7 45 Household Percentage 10.20% 13.19% 7.46% 18.18% 18.92% 10.95%

2.4 AP’s Attitudes Towards to the Project

2.4.1 Survey on Attitude to Highway Construction 53. Analysis on highway construction opinion questionnaire: the questions include: 1. Opinions on highway construction; 2. Opinions on impacts of highway to them and compensations for interest loss. As for the first question, the sampling households identically agreed on highway construction. The farmers of the sampling households who agreed on highway construction account for 96.48% of the total. The farmers who agreed on land requisition account for 79.77% of the total. As for the question whether farmers agree on housing resettlement, the farmers who accept it account for 77.13% of the total. Moreover, the interviewees who think that the highway construction will promote local economic development and improve their lives account for 94.43% of the total. As for the current living status, the people who think it is backward account for 81.52% of the total. It shows that the people along the route positively support and agree on implementation of the project. Meanwhile, they are expecting the proposed highway to promote advancement and development of local economic society. 54. As for the 2nd set of questions, the answers of the sampling households vary. For example, the people who think that compensation money shall be paid to APs directly by a special institute in charge of land requisition and resettlement account for 62.17% of the total. The people who think that compensation money shall be paid to APs directly by Villager Committees accounted for 37.83% of the total. As for mode of compensation, the people who chose monetary compensation accounted for 55.15% of the total. On the other hand, the

30 people who think that they shall be compensated with money and new houses has accounted for 25.59% of the total. As for possible adverse impacts of the highway construction, the people who think that highway construction will not influence environment or the impacts will be less has accounted for 91.9% of the total. The interviewees who think that highway construction will not influence children studies and farmer’s trip or the impacts will be less has accounted for 89.44% of the total. As for the last question, 90.32% of the people know how to declare and safeguard legitimate rights and interests in case of violation of lawful rights in progress of land requisition and resettlement. It shows diversified characteristics of sampling households in process of safeguarding their rights and interests. The diversified difference of affected group shall be correctly understood and paid due attention. 55. As for negative effects of the proposed highway, people who think that it is not safe because of great numbers of vehicles has accounted for 53.23% of the total. People who think that the negative effects mainly focuses on vehicle emissions and noise has accounted for 38.24% of the total. As for whether they will participate in highway construction and generate cash income, people who said yes has accounted for 93.84% of the total. As for how to generate cash income after completion of the highway, people who think that they shall learn advanced agricultural technology has accounted for 36.92% of the total. People who think that they will do business to generate cash income has accounted for 32.82% of the total. Table 2-22 AP’s Awareness and Options No. Item Percentage

Do you agree to construct the Agree 96.48% 1 highway? disagree 3.52%

Do you agree to acquire your Agree 79.77% 2 farmland to construct the highway? disagree 20.23%

Do you agree to demolish your Agree 77.13% 3 houses to construct the highway? disagree 22.87% Do you think that the highway will Able 94.43% 4 promote economic development and improve people living? Unable 5.57%

Whether do you want to utilize the Yes 99.71% 5 land compensation for production? No 0.29% Township Government 0.00% Do you think the compensation fund 6 will be disbursed via which of the Village Committee 37.83% following organizations? Land Acquisition Institutions 62.17% Do you agree on the compensation Agree 77.71% 7 rate for land acquisition and relocation? disagree 22.29%

Do you think the current living Yes 81.52% 8 situation is lower? No 18.48% 9 Which type do you like to be cash compensation 55.15% resettled? Supply new houses 7.65% arrange employment 11.61%

No. Item Percentage Combination of cash compensation and new 25.59% houses Impacted very much 9.09% Do you think the highway will do 10 much impact on the current natural General impact 75.07% environment No impact 15.84% Impacted very much 10.56% Do you think the construction of the 11 highway will do impact on children General impact 68.62% schooling and villager going out? No impact 20.82% During the process of LAR, if your Know 90.32% 12 legal rights are deprived, do you know to appeal? Unknown 9.68%

Do you think the project will help you Able 87.39% 13 to change the poverty situation? Unable 12.61% Convenient for going to school 17.92% or out What kind of benefit the project can Convenient for transporting 14 63.44% take? agriculture product Have chance to do other 18.64% business Will the project do harm to your Possibly 27.57% 15 home? Unlikely 72.43% Unsafe for too much vehicle 53.23% Gas and noise from vehicle 38.24% 16 What kind of harm the project does? Kidnap of female and child 4.13% Easy be infected for much 4.39% person from outside Would you like the number of your Yes 93.84% household take part in the highway 17 construction for getting some No 6.16% income? No plan same as before 14.62% Learn advance techniques for After the implementation of the 36.92% 18 project, how do you to increase your agriculture planting income? Other business 32.82% go out to work 15.64%

2.4.2 Survey on Poverty Status Along the Route 56. In progress of poverty survey, the people who think they are poor accounted for 47.73% of the total. On the other hand, the people who think they are not poor accounted for 41.36% of the total. The poverty mainly arises from illness or lack of labor force. The additional

32 expenses for children education become another reason of poverty. The main household difficulty was lower income, accounting for 57.92% of the total. The people who think they feel difficult due to illness has accounted for 23.76% of the total. As for what is the main income of the household, the people whose income mainly come from planting industry has accounted for 92.24% of the total. As for sales of agricultural products, the people who wait for purchase at home has accounted for 93.81% of the total. As for agricultural input, the people whose input come from small loan has accounted for 41.26% of the total. On the other hand, the people whose input come from household deposit has accounted for 39.01% of the total. As for the question who keeps income in the households, the people who said it was jointly kept by both spouses has accounted for 61.57% of the total. As for the question about participation of medical insurance, the people who have participated accounted for 97.21%. On the other hand, the people who have participated in pension insurance accounted for 2.9%.

Table 2-23 Poverty Situation Survey No Item Percentage Yes 47.73% 1 Is your household poor? No 41.36% Close to poverty 10.91% Have illness or disability 32.60% Child is in school 21.55% The main reason of your 2 No labor 26.52% poverty Poor transport condition 13.26% Poor natural resources 6.08% Heavy burden for child’s education 16.83% Heavy burden from illness 23.76% 3 Main difficulty faced Low income 57.92% Other 1.49% Planting 92.24% 4 Main income resources Breeding 1.37% Work at outside 6.39% Sale by household 96.17% Sale style of your 5 Sale by cooperation shop 0.00% agriculture product Sale under help by village 3.83% Waiting for the buyer 93.81% 6 Sale style Transporting to outside by yourselves 6.19% Saving 39.01% Fund resource of 7 Small amount loan 41.26% agriculture investment Borrow from other 19.73% 8 Does small amount loan Yes 87.90%

No Item Percentage have effect on your No 12.10% income Male 26.39% Who control the income 9 Female 12.04% of the Household Male and Female 61.57% Male 47.64% Who are the main labors 10 Female 4.72% for producing Male and Female 47.64% 1 69.13% How many children your 11 2 25.50% household have Above 3 5.37% Primary school 52.08% Middle school 32.29% 12 Your child is enrolled at Senior secondary school 7.29% Higher education (university) 8.33%

The style of going to By walk 41.89% 13 school Taking bus 58.11% Higher education (university) 67.14%

The education level of Graduate Senior secondary school 15.71% 14 your child Graduate middle school 15.71% Graduate primary school 1.43%

Do you accept the Have 50.90% 15 government subsidy Never 49.10% Subsidy fund 42.55% What the style of the 16 Food 57.45% government subsidy Other material 0.00% Do the member of your Yes 97.21% 17 HH joint the Cooperation Heath Insurance No 2.79% Do the member of your Yes 2.90% 18 HH joint the rural pension insurance No 97.10%

Further information on the socio-economic status of the affected towns, townships, State farms is provided in Appendix 4.

Chapter 3 Impacts of Project Land Requisition and Resettlement 3.1 Definition and scope of project impact 57. Permanent land acquisition: all varieties of farmland and non-farmland including irrigated land, dry land, vegetable land, fishing pond, forest land, wasteland and other land within the redline of land acquisition for the highway. 58. Building demolition: buildings including brick house, thatched cottage, brick and timber house, simple house and workshops within the redline of the highway from Qianfeng farm to Nenjiang. 59. Ground attachment: ground attachment including trees, fruit trees, young trees; all varieties of green seedlings on the farmland within the redline of the highway from Qianfeng farm to Nenjiang. 60. Electric power, telecommunication and water conservancy facilities demolition: the electric power, telecommunication and water conservancy facilities including electric wire, telecommunications wire within municipal or county, metal wire of hanging cable, photowire of hanging cable, metal wire of covered cable and photowire of covered cable within the redline of the highway from Qianfeng farm to Nenjiang Road. 61. Affected household: refers to all of the households having got all or part physical or immaterial property damage induced by the implementation of the Project. In the Project, it refers to all the households who have land, buildings or ground attachment within the redline of the highway and those who have lost all or part of livelihood because of the implementation of the Project. 62. Affected collective: the collectives who have land, buildings, or ground attachment located within the redline. 63. Affected enterprises and institutions: those enterprises and institutions who have land, buildings, or ground attachment within the redline. 64. Project impact type: the land locating within the redline belongs to the impact of permanent land acquisition; building or ground attachment locating within the redline belongs to the impact of demolition. The scope of the Land acquisition and resettlement (LAR) in the RP includes all the LAR along the main road and service centers and that for temporary land use. 3.2 Investigation of material indexes 65. At Oct. 2008, the staff authorized by Heilongjiang Provincial Survey and Design Institute and local governments have conducted a comprehensive survey on the population, houses, land, facilities and other affected physical indicators within the redline of the proposed highway. 66. The survey on the physical indicators is divided into survey on the land acquisition, survey on the population affected by LAR, survey on the house and attachment demolition, survey on the scattered trees, survey on the rural productive and living facilities and special socio-economic survey on the APs. 67. Survey on land acquisition: after DI’s field investigation to determine the scope of land acquisition, the surveys on all kinds of land is conducted by the survey group based on the terrain map with proportion of 1:2000 and the boundary of redline, the current using situation of the land, property ownerships and land grades. 68. Survey on population: the APs in the Project consist of two types, land acquisition and house demolition. The population affected by demolition is registered for statistics door by

35 door. For those affected by land acquisition, the surveyors, land assistants of townships, village committee heads, and village group leaders calculated the actual affected households due to the actual land acquisition along the highway alignment. 69. Survey on house and attachment: to register for statistics by field measurement by property ownerships and structures door by door and to register attachment for statistics. 70. Survey on scattered trees: count the scattered trees on the spot within the affected area to distinguish the fruit trees from other trees and then to register for statistics by tree species. 71. Survey on facilities: on the basis of the current data complied by every supervising department, the surveyors and the relevant staffs of the supervising departments conducted to check for registration together. 72. Socio-economic survey on the APs: to conduct survey and statistics on scope of APs impacted by the land acquisition, house demolition of the main road and link road. 3.3 Project impact 3.3.1 Impact scope of the highway 73. According to the table 3-1, the direct affected regions include 4 counties, 1 city, 2 management bureaus of State farms, 3 forest bureaus, and 1 logistics bases of provincial military command and the land of prison administration bureau of provincial judicial department. The administrative units in the affected area include Nenjiang County, Wudalianchi City, Bei’an City, Suiling County, Yichun City, Management Bureau of State Farms No.93, Bei’an Management Bureau, logistics base of provincial military command and Songhuajiang Forest Bureau. The project will affect 9 towns, 17 administrative villages, 35 village groups, 6 State farms of provincial General Management Bureau of State Farms, 3 farms of prison administration bureau of provincial judicial department, 1 logistics bases and 3 forest bureaus. Detailed impact tables for the State farms and forest farms are provided in Appendix 5. Table 3-1 Resettlement Impact Scope Shuguang villagers’ Shuguang village group Panjia villagers’ group Haijiang Fufa villagers’ group Hongta village township Minfa villagers’ group Houshengli villagers’ Shengli village group Qianshengli group Nenjiang Nenjiang Changjiang village Changjiang group 3 town County Nenjiang Aiguo group 1 Aiguo group 2 Aiguo village Aiguo group 3 Changfu Aiguo group 4 township Donggancun group 1 Donggan village Donggancun group 3 Zhonghe village Zhonghe group 1 Forestry Sishilihe Forestry farm Bureau 93 Management Bureau of Nenjiang farm State Farms Qixingpao farm Wudalianchi Wudalianchi Longtou village Longtou group 1 Shuangquan City Shuangquan Shuangquan group 2 town village Shuangquan group 1

Sihe group 1 Sihe group 2 Sihe village Sihe group 3 Sihe group 4 Xinlong Xinghuo group 4 township Xinghuo village Xinghuo group 3 Xinghuo group 1 Hongsheng group 4 Hongsheng village Hongsheng group 5 Hongsheng group 3 Xinfa Hexin village township Bei’an Geqiushan farm Management Weishan farm Bureau of Yinlonghe farm State Farms Department of Justice of Yongfeng farm Heilongjiang Military Wudalianchi farm Jianwei group Jianshe group Erjing town Jianhua village Jian’an group Jianhua group Bei’an City Zhaoguang Dongfeng village Dongfeng group 8 township Beihe village Beihe group 5 Chengjiao Bei’an Jianmin village Group 1 township Department of Justice of Huanyuan farm Heilongjiang Fenhuangshan farm Bei’an Management Bureau Hongxing farm of State Farms Songhuajiang Forestry Tongbei forestry bureau Bureau Songhuajiang Forestry Suiling Suiling forestry bureau Bureau Yichun Yichun City Cuiluan forestry bureau

3.3.2 Impact of land requisition 74. The highway will permanently require 20,097 mu (include 64.1 mu for link road) of land, among which the cultivated land accounts to 7547.5 mu (include 14.3 mu for link road) , the forest land accounts to 9484.5 mu, and the other land accounts to 3,015.1 mu. The percentage of cultivated land is 37.6% and forest land is 47.3%. Of which the permanently occupied land of main road is 20,032.8 mu, which are 7,533.2 mu of cultivated land, 9484.5 mu of forest land and others are 3,015.1mu. 75. The temporary land will reach 2,019mu, among which the cultivated land is 772.2mu, the forest land is 534.2 mu, and the wasteland is 712.6mu. The percentages of the three types are 38.2%, 26.5% and 35.3 separately. The temporary land occupied by main road is 1,998.2 mu. Of which, cultivated land is 772.2mu, forest land is 531.4mu and wasteland is 694.6mu. (1) Occupied Land of the Main Highway 1. Permanent land acquisition 76. The highway will permanently require 20,032.8 mu of land, among which the

37 cultivated land accounts to 7533.2 mu (37.6%), the forest land accounts to 9484.5 mu (47.3%), and the other land accounts to 3,015.1 mu (15%). See table 3-2, table 3-3, table 3-4 and table 3-5.

Table 3-2 Land to be Acquired from Forestry Bureaus and State Farms (mu) District Administrative Title Land Area Yichun Cuiluan Forestry Bureau 1742.6 Suiling Suiling Forestry Bureau 4810.9 Tongbei Forestry Bureau 3843.1 Hongxing Forestry Bureau 2241.4 Fenghuangshan Farm 220 Huayuan Farm 57.1 Bei’an Provincial Military Base 85.3 Yongfeng Farm 330.2 Weishan Farm 539.8 Geqiushan Farm 511.2 Yinlonghe Farm 894.1 Qixingpao Farm 656.5 Nenjiang Nenjiang Farm 229 Sishilihe Forestry Farm 230.8 Total 16392

Table 3-3 Land to be acquired from Each Township and Town (mu) District Administrative title Land Area Haijiang Township 427.6 Nenjiang Nenjiang Town 182.8 Changfu Township 34.3 Shuangquan Town 231.4 Wudalianchi Xinglong Township 1447.6 Xinfa Township 550.3 Erjing Town 151.4 Bei’an Zhaoguang Town 455.2 Chengjiao Township 160.2 Total 3640.8

Table 3-4. Land Acquisition Areas from State Farms and Forestry Farms unit: mu Farms and Dry Forestry Unused Vegetable Fish Residential Location Grassland Lawn Old road others Total forestry farms farmland land land garden pond land Cuiluan forestry Yichun 25.1 1672.9 23.4 11.1 10.1 1742.6 bureau Suiling forestry Suiling 418.0 4144.6 195.8 1.1 10.1 25.5 15.8 4810.9 bureau Tongbei forestry 565.4 2641.2 587.9 1.3 43.5 3.8 3843.1 Bei’an bureau Hongxing farm 1805.6 166.1 249.7 19.5 0.5 2241.4 Fenghuangshan 199.9 20.1 220 farm Huanyuan farm 32.9 4.7 13.3 6.2 57.1 Wudalianc Military farm 77.4 1.1 5.5 1.3 85.3 hi Yongfeng farm 222.5 1.6 21.5 22.1 22 40.5 330.2 Weishan farm 301.0 119.4 9.3 110.1 539.8 Geqiushan farm 75.3 137.4 1.7 2.4 294.4 511.2 Yinlonghe farm 242.2 284.4 11.1 356.4 894.1 Qixingpao farm 80.6 166 50.1 359.8 656.5 Nenjiang farm 150.5 34 40.3 0.2 4 229 Nenjiang Sishilihe forestry 168.1 24.7 29.8 1.2 5.8 1.2 230.8 farm Total 4364.6 9398 1056.9 142.3 60.3 0.2 6.0 32.2 1259.5 71.9 16392

Table 3-5. The Land Acquisition Areas from Towns and Townships mu Dry Rice Vegetable Forestry Residential Fish Old Grass Un-used others Sub-total farmland paddy garden land area pond road

Haijiang 420 2 0.3 1.1 2.6 1.6 427.6 Nenjiang 157 1.1 24.7 182.8 Nenjiang Changfu 34 0.3 34.3 Sub-total 611 2 0.3 1.1 4 26.3 Shuangquan 184 5 9.1 21.4 1.1 10.8 231.4 Xinglong 1335.2 11 76.9 24.5 1447.6 Wudalianchi Xinfa 482 7 8 45.3 8 550.3 Sub-total 1919 7 24 9.1 143.6 33.6 10.8 Erjing 138.6 4.1 6 2.7 151.4 Zhaoguang 248.4 58.4 148.4 455.2 Bei’an Chengjiao 160.2 160.2 Sub-total 547.2 62.5 6 148.4 2.7 Total 3159.4 7 2 86.5 15.1 292 0.3 1.1 40.3 37.1 3640.8

2. Temporary land Acquisition of the main highway 77. The temporary land acquisition of the main highway reaches 1,998.2mu. Table 3-6 Temporary Land Use for the Main Highway

Location Land acquisition (mu) Cuiluan Forestry Bureau 52.5 Suiling Forestry Bureau 514.2 Tongbei Forestry Bureau 13.4 Nenjiang 299.9 Wudalianchi 296.7 Bei’an 98.9 Hongxing farm 722.6 Total 1,998.2

(2) Impact on Land for the Link Road 78. The project also will construct 5.1 km link road to link with town and farms. The total three link roads located in Nenjiang, Geqiushan farm and Qixingpao farm separately. The permanent land acquisition for the link roads is 64.1 mu, of which 14.3 mu is farmland. A. Permanent land acquisition 79. The permanent land acquisition for the link road is 64.1mu. Table 3-7 Permanent Land Acquisition for Link Road

Location Land Title Land acquisition area (mu) Weishan Farm 14.7 Wudalianchi City Geqiushan Farm 20.5 Qixingpao Farm 14.6 Nenjiang County Haijiang Township 14.3 Total 64.1

B. Temporary land use for the link road 80. The temporary land use for the link road is 20.8mu. Table 3-8 Temporary Land Acquisition for Linking Road Location Land title Land acquisition area (mu)

Nenjiang County Haijiang Township 20.8

3.3.3 Impacts of the Project on Enterprises 81. Only one enterprise is affected but it suspended in 2007. The affected structures are the abandoned warehouses, no residential structures are affected.

Table 3-9 Impact of Affected Enterprise Enterprise Brick houses（m2） Jinzhu Hongye Ltd. 117

3.3.4 Impact to Structure Demolition 82. There are 1936.6 m2 of brick buildings will be demolished for the construction of the proposed highway. And there are 242.8 m2 warehouses also will be demolished. The households will be resettled is only 10 households. All are brick structures.

Table 3-10 Structure Removal Information Brick house Storage building Town or Township (owner) （m2）（m2） Suiling Forestry Bureau 328 111 Yongfeng Farm 470 Main Shuangquan road 178 Wudalianchi Township Weishang 440.6 91.8 Farm Sigongli Gang of Nenjiang road 277 management station Branch Lixin Village of Nenjiang town, 126 40 road Nenjiang county Jinzhu Hongye Ltd. 117 Total 1,936.6 242.8

3.3.5 Impact to forest 83. For impacts of the Project to forests according to forest industry investigation team, please refer to Table 3-11. The affected forests include those on permanent and temporary land occupied by the main highway and the link roads. Table 3-11 Quantity of Impacted Forestry Broadleaf tree diameter, quantity Coniferous , diameter, quantity Economically profitable 5<φ<1 10<φ< 5<φ<1 10<φ< φ<5 ф 〉15 φ<5 ф 〉15 seedlings Administrative 0 15 0 15 title Timber Timber Timber Timber Timber Timber Timber Timber Willow Poplar Pine wood wood wood wood wood wood wood wood

(unit) (unit) (unit) (unit) (unit) (unit) (unit) (unit) (m2) (m2) (m2) Cuiluan Forestry 22010 95939 85888 21243 49605 33607 29552 6979 Bureau 3 Suiling Forestry 24557 11734 99619 18526 83642 35235 38076 8586 Bureau 6 6 Tongbei 18243 83680 55253 14754 98829 89488 68737 12613 Forestry Bureau 7 Hongxing Farm 2830 1650 6094 7385 504 5330 745 11720

Milatry farm 57 0 106 340 88

Broadleaf tree diameter, quantity Coniferous , diameter, quantity Economically profitable 5<φ<1 10<φ< 5<φ<1 10<φ< φ<5 ф 〉15 φ<5 ф 〉15 seedlings Administrative 0 15 0 15 title Timber Timber Timber Timber Timber Timber Timber Timber Willow Poplar Pine wood wood wood wood wood wood wood wood

(unit) (unit) (unit) (unit) (unit) (unit) (unit) (unit) (m2) (m2) (m2)

Bei’an City 1712 7593 2673 413 428 214 171 43

Nenjiang 1460 6 12161 3457 Wudalianchi 17698 4576 1243 City Yinlonghe Farm 1397 4626 1169 359 2118 1412 47

Weishan Farm 1042 2949 311 4 139 1395 649 34 Geqiushan 3194 130 2431 Farm Qixingpao Farm 6 11563 3457 1800 7985 67279 31981 25421 23350 16749 14902 Total 87479 40110 1800 7985 5 9 3 6 3 7 3.3.6 Impact to Auxiliary Facilities Table 3-12 Impact Facilities and Attachment

Item Facility Unit Quantity

Concrete electric pole Pole 286 Timber electric pole Pole 171 Public photo-cable M 9825 facilities cable M 88710 high voltage tower Set 4 CATV wire Pole 17 Grove Grove 40 Fence m 965 Fencing wall（Brick） m 417 Well Well 8 Attachment Sign brand unit 43 Underground bee vault sq.m 54 Corral sq.m 19 Toilet Set 40 Iron gate set 6

3.3.7 Affected population 84. The affected population involves: 1. Actual affected population, e.g. the population affected by demolish and land requisition; 2. The calculation number of rural population based on the “Land Administration Law of the People’s Republic of China”. The population data is a calculation result based on the rural land village/group collective ownership of China. It is just used as an important indicator for analysis on impact degree of land requisition. This population data is calculated from following formula: 85. People who lost their all farmland=total farmland acquisition number÷farmland per capita

86. The agricultural population to be resettled reaches 936 persons. They are those who have completely lost their land after calculation on the basis of per capita owned land. The data from above formula is only the theoretical number, the actual people who lost their all farmland is few due to the land acquisition is disperse into many households and people. (1) Population affected by land requisition 87. According to calculation, the land requisition affects 3500 households. The passage of the highway through towns and villages affected 2000 households. The passage of the highway through farms and forest bureaus affects 1500 households. A. Calculation of population affected by passage of highway through towns and villages 88. According to calculation, the population completely losing their land has reached 477 persons, roughly about 150 households (refer to Table 3-13). However, according to statistics of sampling households, the average loss of farmland will only be 5% - 10% at the household level. Therefore, the number of affected households will reach 1500-3000. In consideration that the highway will crosscut land ridges in most villages where the highway passes through, the number of affected households is expected greater. The impact degree of each household seems less. Therefore, we take 7.5% as the impact degree. The number of directly affected households will reach 2000 households. Please refer to Table 3—13.

Table 3-13 Population of Affected Town and Township Cultivated Population Cultivated Proposed Population Land per who Site Land Area Requisition (persons) Capita lose (mu) Land (mu) (mu) land Shuguang villagers’ 5337 827 6.5 9 1 Shuguang village group Panjia villagers’ group 5147 753 6.8 7 1 Haijiang Fufa villagers’ group 3570 605 5.9 6 1 Hongta village township Minfa villagers’ group 5791 756 7.7 9 1 Houshengli villagers’ 8691 956 9.1 261 29 Shengli village group Qianshengli group 4000 496 8.1 130 16 Nenjiang Nenjiang town Changjiang village Changjiang group 3 5026 787 6.4 157 25 county Aiguo group 1 3921 385 10.2 5 0 Aiguo group 2 3940 390 10.1 6 1 Aiguo village Aiguo group 3 3900 380 10.3 3 0 Changfu Aiguo group 4 3924 385 10.2 5 0 township Donggancun group 1 3400 350 9.7 7 1 Donggan village Donggancun group 3 3350 346 9.7 4 0 Zhonghe village Zhonghe group 1 3022 333 9.1 4 0 subtotal 63,019 7,749 8.56 613 86 Wudalianchi Longtou village Longtou group 1 1900 542 3.5 46 13 Shuangquan city Shuangquan group 2 4880 897 5.4 84 15 town Shuangquan village Shuangquan group 1 4850 892 5.4 54 10 Xinlong Sihe group 1 2666 287 9.3 32 3 township Sihe group 2 2434 288 8.5 39 5 Sihe village Sihe group 3 4874 799 6.1 78 13 Sihe group 4 2765 308 9.0 47 5 Xinghuo village Xinghuo group 4 2600 260 10.0 94 9

Cultivated Population Cultivated Proposed Population Land per who Site Land Area Requisition (persons) Capita lose (mu) Land (mu) (mu) land Xinghuo group 3 3600 368 9.8 94 10 Xinghuo group 1 6000 603 10.0 284 29 Hongsheng group 4 4086 531 7.7 185 24 Hongsheng village Hongsheng group 5 4860 602 8.1 195 24 Hongsheng group 3 3354 770 4.4 205 47 Xinfa township Hexin village 7327 1600 4.6 489 105 subtotal 56,196 8,747 7.2 1,926 308 Jianwei group 12150 1348 9.0 50 6 Jianshe group 8264 966 8.6 20 2 Erjing town Jianhua village Jian’an group 3706 311 11.9 9 1 Jianhua group 8150 1637 5.0 60 12 Bei’an city Dongfeng village Dongfeng group 8 2700 310 8.7 109.5 13 Zhaoguang town Beihe village Beihe group 5 3200 380 8.4 138.9 16 Chengjiao Group 1 2021 390 5.2 74 14 Jianmin village township Group 2 2041 375 5.4 86.2 16 subtotal 42,232 5,717 7.78 574.6 80 total 161,447 22,213 7.85 3,113.6 477

B. Calculation of population affected by passage of highway through agricultural and forest farms 89. According to calculation, the population completely losing their land has reached 459 persons, roughly about 150 households. According to statistics of sampling households, the impact of land requisition will accounts for 5% - 10%. The affected households will reach 2000 – 1000 households. We take 7.5% as the impact degree. The number of directly affected households will reach 1500. Please refer to Table 3—14. Table 3-14 Affected Population of Affected State Farms and Forestry Farms Cultivated Cultivated Farms and Population Occupied Location Land Land per AP forestry farms （person） Land Area (mu) Capita Hongxing Farm 335475 11892 1823.8 28.2 65 Nenjaing 386745 11359 150.5 34.0 4 Farm The Geqiushan Provincial 241905 7816 75.3 30.9 2 General Farm Weishan Management 228570 10132 301 22.6 13 Bureau of Farm Qixingpao State Farms 467115 14048 80.6 33.3 2 Farm Yinglonghe 334920 12609 242.2 26.6 9 Farm Huayuan Farm - - 32.9 - - Provincial Justice Yongfeng Farm - - 222.5 - - Fenghuangshan Department - - 199.9 - - Farm Wudalianchi Military - - 77.4 - - farm Tongbei Songhuajiang 118920 32281 663.3 3.7 179 Forestry Bureau Forestry Suiling Forestry Bureau 155851 46052 499.9 3.4 147 Bureau Cuiluan Yichun 37335 50238 25.1 0.7 36 Forestry Bureau Sishilihe Nenjiang 28995 373 168.1 77.7 2 Forestry Center Total 4364.5 459 - Data is not available 3.4 Project impact analysis 3.4.1 Impact analysis on occupied cultivated land 90. The highway will occupy 7547.5 mu of cultivated land, accounting for 37.6% of the total requisite land. Among which, there are 3168.4 mu of occupied land in towns and villages, accounting for 40.9% of requisite cultivated land. There are 4379.1 mu of occupied land in agricultural farms and forest farms, accounting for 59.1% of requisite cultivated land. The per capita cultivated land where the highway passes is relatively greater, so the requisition scale of each household is less and the impact degree will be lower. However, the impact scope will be wider (i.e., affect more households). Large quantities of cultivated land exist in agricultural and forest farms where the highway passes. Investigations revealed that (i) the land area of agricultural farm is greater, (ii) the per capita cultivated land area is several times of that of

47 provincial per capita cultivated land, (iii) much of the agricultural farm belongs to state-owned system, (iv) the land contracted by farm employees is adjusted in short period, even adjusted every 1 year, (v) there is waste land is available for reclamation. Therefore, the occupied land will bring about little impact on the affected farms. The forest farms, where the highway passes, mainly engage in operation of forest industry. The income from planting industry is not the main source of income. The land requisition will bring about certain of impacts to staff and workers of forest farms. However, it will be less and can be mitigated.

3.4.2 Analysis on impact of removal 91. The houses which will be removed totally reach 1936.6 m2 in area and warehouse area reach to 242.8 m2. Overall, the size of house removal and resettlement is very small. There are 10 farmer households, 2 units, 1 enterprise which will be affected by the project. The 2 units are Yongfeng Farm of Jail Management Bureau and Sigongli Gang of Nenjiang Highway Management Station. The removed houses are main for warehouse. After compensation warehouses will be built quickly. Peasant’s houses to be removed and resettled are distributed at both sides of the highway. In the affected villages, it is easier to find homestead lands suitable for new houses in original villages. The newly built houses will be relocated along the highway or in the original villages as applicable as possible. The highway does not bring about demolish and resettlement of urban residents’ houses.

3.4.3 Analysis on impact to enterprise 92. The highway will affect 1 enterprise, mainly involving removal and resettlement of houses. This enterprise has suspended its operation in 2007. Therefore, the house demolish has no impact on operational income and workers re-arrangement.

3.4.4 Analysis on forest land requisition 93. The land requisition of forest land will totally reach 9,534.3 mu, accounting for 47.1% of the acquired land. Of which, forest land of Forestry Bureau and Farm accounts to 9447.8, accounting for 99.1%. The affected forest bureaus are under leadership of provincial forest industry administration bureau. They are state-owned. However, forest bureaus have not been empowered to cut forest trees for sales due to implementation of state forest protective policy. The state will allocate maintenance fund to forest bureaus for purpose of forest maintenance according to actual forest area maintained by them. The main income comes from diversified economy, non-forestry economy and breeding industry. As a result, the requisition of forest land will not bring about significant impacts to staff and workers of forest farms. Because of vast areas in forest farms, the small quantity of cultivated land requisition may be easily addressed by cash compensation. Contrarily, the highway construction can greatly promote forest farm’s economic development. At present, it is understood that a large number of non-timber forest products are not sold because of inconvenient transportation. In addition, the forest tourism resources cannot be also developed.

Chapter 4 Legal and Policy Framework 94. Legal and policy framework for this project has two sets of sources: PRC’s laws and regulations and ADB’s Policy on Involuntary Resettlement. The purpose of this chapter is aimed to describe land acquisition, demolition and resettlement policies as well as strategy concerning compensation and rehabilitation measures. The implementation of resettlement activities will be carried out strictly and consistently with the compensation rates and resettlement program stipulated in this RP. 4.1 Policy basis 95. The policies and regulations referred by the Project are mostly listed as follows: a) Land Administration Law of People’s Republic of China, 2004 b) Forest Law of People’s Republic of China, 1998 c) Land Administrative Regulations of Heilongjiang Province, 2000 d) Notice on issues relating to regularize and adjust compensation criteria for occupied forest land promulgated by Forest Department, Price Bureau and Financial Department of Heilongjiang Province (H.L.L.F.[2007] No.185 dated December 17, 2007). e) Farmland cu Notice on Issuance of “Tentative Method for levy, Utilization and Management of Forest Vegetation Rehabilitation Fee” of Ministry of Finance and State Forest Administration Bureau dated October 25, 2002, C.Z.[2002] No.73ltivation fee collection and use regulations of Heilongjiang Province, 2001 f) Heilongjiang Province Implementation Method of Regional Land Acquisition Integrated Price, 2009 g) Notice issued by Heihe Municipal Government for Implementation of “Standard of Area Integrated Price for Land Requisition of Heihe City”, December, 2008 h) Notice to Unite Farmland Occupancy Tax Rate for Highway Construction, Ministry of Financial, 1989 i) Heilongjiang Management Methods of Accepting and Using Farmland Reclamation Fee, 2001 j) Heilongjiang Basic Agricultural Land Prevention Regulations (Revised), 1995 k) The notice of print and distribution the regulation of ‘ The standards of Farmland re-cultivation fee collection of Heilongjiang Province’, 1991 l) The notice of print and distribution the regulation of ‘Land management fee collection regulations of Heilongjiang Province’, 1995, Land Administration Bureau, Price Bureau, Finance Department of Heilongjiang Province. m) Provisional Measures of Old-age Insurance for Peasants Involved in Land Requisition in Heilongjiang Province, 2008 n) Heilongjiang Provincial Farmland Occupation Tax Regulation, 2008 o) ADB’s Involuntary Resettlement Policy, 1995

Details are provided in Appendix 3.

4.1.1 Summary of Key Domestic Policies and Regulations 96. The most important regulation in Heilongjiang Province is the “Heilongjiang Province Implementation Method of Regional Land Acquisition Integrated Price”, which be put in practice in 2009. 97. The integrated price for occupied land within jurisdiction area of Heilongjiang Province shall follow this regulation. The land area integrated price in this method means regional compensation criterion of occupied land according to the factors including type of occupied land, production value, location, grade of farming land and quantity of local per capita cultivated land, land supply relationship, economic development level, and minimum living standard level for urban residents. It excludes compensation criteria for attachments and

49 young crops on the ground. The land requisition area shall be classified based on administrative village. The boundary shall be coordinated with that of administrative village. 98. The compensation fee for requisition land shall be calculated according to land area integrated price and occupied land area. 99. The compensation fee determined by land area integrated price shall be used as follows after payment of social welfare expenses which shall be paid by collective economic organization and individual: 70% for subsidies of farmer resettlement, 30% for infrastructure and public facilities construction, establishment of village-owned enterprise and farmer living subsidies organized by collective economic organization which holds ownership of collective land. In case that the land requisition compensation fee is not enough for farmer social welfare expenses, the local government shall pay with income from sales of using right of state-owned land, properly solve the issues including farmer’s employment, housing and social welfare security. The farmers whose land have been requisition in this method mean farmers who have registered as agricultural population and own management right of rural contracted collective land according to law.

4.1.2 ADB Policies 100. For this Project, the following ADB policy principles will also be applied: (i) Involuntary resettlement should be avoided whenever feasible. (ii) Where population displacement is unavoidable, it should be minimized by providing viable livelihood options. (iii) Replacing what is lost. If individuals or a community must lose all or part of their land, means of livelihood, or social support systems, so that a project might proceed, they will be compensated and assisted through replacement of land, housing, infrastructure, resources, income sources, and services, in cash or kind, so that their economic and social circumstances will be at least restored to the pre-project level. All compensation is based on the principle of replacement cost. (iv) Each involuntary resettlement is conceived and executed as part of a development project or program. ADB and executing agencies or project sponsors, during project preparation, assess opportunities for affected people to share project benefits. The affected people need to be provided with sufficient resources and opportunities to reestablish their livelihoods and homes as soon as possible, with time-bound action in coordination with the civil works. (v) The affected people are to be fully informed and closely consulted. Affected people are to be consulted on compensation and/or resettlement options, including relocation sites, and socioeconomic restoration. Pertinent resettlement information is to be disclosed to the affected people at key points, and specific opportunities provided for them to participate in choosing, planning, and implementation options. Grievance redress mechanisms for affected people are to be established. Where adversely affected people are particularly vulnerable groups, resettlement planning decisions will be preceded by a social preparation phase to enhance their participation in negotiation, planning, and implementation. (vi) Social and cultural institutions. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. (vii) No formal title. Indigenous groups, ethnic minorities, pastoralists, people who claim for such land without formal legal rights, and others, who may have usufruct or customary rights to affected land or other resources, often have no formal legal title to their lands. The absence of a formal legal title to land is not a bar to ADB policy entitlements. (viii) Identification. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cutoff date, preferably at the project identification stage, to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits.

(ix) The Poorest. Particular attention must be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly indigenous peoples. Appropriate assistance must be provided to help them improve their socio-economic status. (x) The full resettlement costs are to be included in the presentation of project costs

4.1.3 Policy Gaps 101. In comparing the gaps between ADB and PRC policies, Table 5-2 shows the distinctive differences in the aspects of information disclosure and consultation.

Table 4-1：Gaps between ADB & PRC Policies on Involuntary Resettlement

No ADB Policies Differences Involuntary No difference resettlement should be Usually conducted with technical and financial optimization 1 avoided whenever (alternative analysis) feasible Where population No difference displacement is c.f. Clause 13 of No. 28 document 2 unavoidable, it should be minimized by providing viable livelihood options Replacement No difference 3 compensation of what is With compensation and assistance lost Each involuntary Slight difference ADB resettlement is Also see No. 10 procedure 4 conceived and executed has been as part of a development and will be project or program. followed The affected people ADB are to be fully informed Different； procedure and closely consulted. has been 5 Usually no consultation, and the information disclosure are and will be conducted after RP approval in China followed Social and cultural No difference 6 Institutions With compatibility analysis, China is experienced on this aspect No formal title Different； According to Chinese laws and regulation, no compensation for ADB demolition of no-formal-title structures or beyond-approved-date procedure 7 temporary structures. But in practice, the structures will be has been compensated at lower price according to a negotiated agreement. and will be While ADB policies policy is inclusive; it recognizes all persons followed affected by the project as eligible for compensation and rehabilitation irrespective of legal or ownership titles. Identification of No difference 8 Compensation Entitlement (ADB statement “as early as possible” is somewhat vague) The poorest & Vulnerable No difference 9 Groups Provided assistance The full resettlement costs Slight difference ADB are to be included in the The full costs of land acquisition for national key procedure 10 presentation of project development projects shall be included in the overall project has been costs and benefits budget. and will be followed 102. Notwithstanding the minor difference in clause or statement, the most significant difference is on procedures, ADB requires RP preparation starting from the beginning of

51 project preparation. In Chinese practice, it will only be considered during the project land approval stage with no detailed social economic survey and no consultations with potential APs at that time. Meanwhile, during the time of project preparation, there are no specific persons responsible for RP affairs on a proposed project. 103. For some domestic central government funded small-scale projects, the only budget provided was for engineering works and the RP costs were left to the county or township government. 104. It is very unlikely that project resettlement can achieve a successful result without a well-prepared RP. In short, the successful implementation of resettlement work needs strong enforcement of currently improved regulations and policies. 105. Fortunately, this situation is changing and this Project is beyond that scope, as Heilongjiang province has well prepared local by-laws for land acquisition and resettlement, and there are no substantial differences from ADB policies. Efforts have been made on this Project to bridge this gap by training and coaching IA staff throughout. Furthermore, an ADB senior resettlement specialist, and the PPTA consultants have explained the processes and procedures to the IAs to ensure that they fully understand ADB requirements and PRC policies on involuntary resettlement. This is just a start; further measures will be adopted after the PPTA stage and before RP implementation. 4.2 Compensation Standards

4.2.1 Land compensation rates (1).Compensation rates for project permanently requisition land A. Compensation rates for land acquisition in towns and farms

Table 4-1 Compensation Rates for Permanently Land Acquisition Compensation Rates Location Farms and Towns or townships CNY/M2

Changfu township 19.46 Haijiang township 20.98 Nenjiang town 20.94 Nenjiang Sishilihe forestry farm Refer to Table 4-2 Nenjiang farm 16.08 Qixingpao farm 16.08 Shuangquan town 21.54 Xinfa township 38.69 Xinlong township 19.82 Yinlonghe farm 16.08 Geqiushan farm 16.08 Wudalianchi Weishan farm 16.08 Huayuan farm 20.64 Yongfeng farm 21.54 Fenghuangshan farm 20.64 Military farm of Wudalianchi 38.69 Bei’an Erjing town 15.8 Zhaoguang town 16.3 Chengjiao township 15.8

Compensation Rates Location Farms and Towns or townships CNY/M2

Hongxing farm 16.3 Tongbei forestry bureau Refer to Table 4-2 Suiling Suiling forestry bureau Refer to Table 4-2 Yichun Cuiluan forestry bureau Refer to Table 4-2 Note: since the location of Nenjiang farm, Qixingpao farm, Geqiushan farm, Yinlonghe farm, Weishan farm are near Caoyang township, the integrated price of land of above farms will be same with the price of Caoyang township. 106. Compensation for young crops: 6% of land integrated price. B. Forest land compensation standards 107. The compensation for forest land composes of forest vegetation rehabilitation fee, forest land compensation fee, forest trees compensation fee and resettlement subsidy fee.

Table 4-2 Compensation Rates for Forestry land

Item Type Rates

Important eco-forestry 5 Wood cultivating land for the 3 maturing wood Firewood 2 Fencing wood, special usage Forestry land 5 compensation wood rates Type of Forestry land Economically profitable wood 3

Scattering wood and （CNY/㎡） 2 shrubbery land Nursery wood 5

Land is not mature 2

Land no wood 1 Compensation for Below 5 (exclude 5) 20 woods (CNY／unit) 5—10(exclude10) 30

Man-made wood 10—15(exclude 15) 40 scale (diameter ,cm) 15—20(exclude 20) 50

20—30(exclude 30) 60

Above 30 70 More 20% than man-made Nature wood wood Nursery wood CNY/㎡ 30

Item Type Rates

Economically profitable 3-5 times the direct economy value and wood resettlement cost Resettlement subsidy （CNY/ 2.25 ㎡） Timber wood, economically profitable wood, firewood, 6 nursery wood Wood isn’t matured 4 Compensation Protection wood and special usage wood 8 rates for forest State key fencing wood and state special usage wood 10 replanting fee （CNY/㎡） Scattering wood and shrubbery land 3 Woods suitable for forestry, deforesting and fire 2 2 times the Forest land in Urban and urban planning area standard above

(2) Compensation standards for project temporarily occupied land A. Compensation standards for farmland

Table 4-3 Compensation standards for temporary farmland use Use time Compensation Policy Rates 1 year 10% of the integrated price See Table 4-1 2 year 20% of the integrated price

B. Forest land compensation standards 108. The compensation for temporary forest land includes forest land compensation fee, forest tree compensation fee and pre-paid forest vegetation rehabilitation fee. Table 4-4 Compensation Policies for Forestry land for temporary

Item Type Rates Important 5 eco-forestry Wood cultivating land for the 3 maturing wood Firewood 2 Forestry land Fencing wood, compensation 5 rates Type of Forestry land special usage wood Economically 3 （CNY/㎡） profitable wood Scattering wood 2 and shrubbery land Nursery wood 5 Land is not mature 2 Land no wood 1

Item Type Rates Below 5 (exclude 5) 20 5—10(exclude10) 30 Man-made wood scale 10—15(exclude 15) 40 (diameter ,cm) 15—20(exclude 20) 50 Compensation 20—30(exclude 30) 60 for woods Above 30 70 (CNY／unit) More 20% than Nature wood man-made wood Nursery wood CNY/㎡ 30 3-5 times direct economy value Economically profitable wood and resettlement cost Timber wood, economically profitable wood, firewood, 6 nursery wood Wood isn’t matured 4 Protection wood and special usage wood 8 Compensation State key fencing wood and state special usage wood 10 rates for forest Scattering wood and shrubbery land 3 replanting fee （CNY/㎡） Woods suitable for forestry, deforesting and fire 2 2 times of the Forest land in Urban and urban planning area standar d above

4.2.2 House compensation standards 109. According to site survey and researches together with construction bureaus, the house compensation criteria were established. Considering that house removal and resettlement is mainly centralized in rural area, agricultural farms and forest farms other than urban area, the house compensation criteria did not take account of urban assessment pricing approaches. Table 4-5 Compensation rates for house demolish (Yuan/m2) Structure standards Unit Compensation rates Brick house (Grade 1) m2 550 Brick house (Grade 2) m2 510 Brick house (Grade 3) m2 470 Adobe house with tile m2 440 Adobe house with grass m2 400 Temporary house m2 360

Table 4-6 House Structure Criteria Structure Base Wall Ceiling Brick house Stone, Timber frame, red tile and sheet Brick (Grade 1) concrete iron Brick house Stone, heavy Timber frame, red tile and sheet Red brick (Grade 2) sand iron Brick house Red brick, Timber frame, concrete tile, Red brick (Grade 3) heavy sand asbestos tile and felt oil paper Earth and tile Red brick, Half earth and Timber frame, asbestos tile and house heavy sand half brick felt oil paper Earth house (thatched None earth Grass cottage) Simple house none Board or brick asbestos tile and felt oil paper

4.2.3 House relocation policy 110. In order to help the APs move and reconstruct their houses to at least the same living standard, the Project will provide the relevant costs including transporting cost for movement, subsidy for work-delay, flat cost for housing plot and preparation cost for the rural relocated households. The detailed compensation fees can be seen in Table 4-7. Table 4-7 Subsidies for the APs Movement and Transition Description Unit Compensation Fees

Transporting cost for movement Yuan/household 200

Subsidy for work-delay Yuan/household 100

Flat cost for housing plot Yuan/household 200

4.2.4 Compensation for infrastructures and attachments 111. Other facilities and attachment affected by the project are listed as Table 4-8. Table 4-8 Compensation Rate for Infrastructure and Attachments Item Facility unit Rates（CNY） Concrete electric pole Pole 3000 Timber electric pole Pole 1000 Public photo-cable m 100 facilities cable m 100 high voltage tower Set 40000 CATV wire Pole 3000 Grove Grove 100 Fence m 100 Fencing wall（Brick） m 150 Well Well 10000 Attachm Sign brand unit 2000 ent Underground bee vault m2 1000 Corral m2 500 Toilet Set 300 Iron gate set 200

4.3 Entitlement Matrix 112. The entitlement matrix is designed according to the relevant policies in the related chapters. Refer to Table 4-9 Table 4-9 Compensation Entitlement Matrix

Type of Loss Impact Degree Entitled Entitlements Policy/Rate of Persons Compensation

Temporary Land Total 2,019 mu Affected Cash 10% of the Occupation land, of which villagers and compensation integrated price 1,998.2 mu state farms, for 1 year affected by main forestry farms occupation and road, 20.8 mu by 20% for 2 years. link road The rates refer to Tables 4-1, 4-2

Permanent Land Total 16441.8 14 State farms Cash Different farms Acquisition of mu land will be and state compensation have different State Farms and required by the forestry farms based on the integrated price. Forestry Farms project (16,392 (about 1,500 rate of Refer to Tables m in main road households) integrated prices 4-1 and 4-2 and 49.8 mu in link road,)

Permanent Land Total 3,555.1 Villagers and Cash Different town or Acquisition of mu land will be village compensation township have Collective Lands required by the committees of 9 based on the different project (3,640.8 towns and rate of integrated price. mu in main road townships integrated prices Refer to Tables and 14.3 mu in (about 2,000 4-1 and 4-2 link road) households)

House 1,936.6 m2 brick 10 households, Cash Refer to Tables Demolition buildings and 2 units and 1 compensation at 4-5 and 4-6, 4-7 242.8 m2 enterprise replacement warehouses will costs be demolished

Trees About 2 million Related forestry Cash Refer to Table broadleaf trees farms and state compensation 4-2 and coniferous farms, villagers based on the trees, tree types and economically the diameter of profitable trees trees will be cut by the project.

Auxiliary 286 concrete Property owners Cash Refer to Table Facilities electric pole, compensation, 4-8 171 timber based on the electric pole, relocation costs 9,825 m photo cable, 88,710 m cable, 4 sets high voltage

Type of Loss Impact Degree Entitled Entitlements Policy/Rate of Persons Compensation tower, 17 CATV wire pole, 40 groves, 965 m fence, 417 m brick fencing wall, 8 wells, 43 sign brand, 54 m2 underground bee vault, 19 m2 corral, 40 sets toilet, and 6 iron gates will be affected

Vulnerable Affected by the Few elders living Same Special groups house demolish alone, disabled, compensation assistance, and land woman-headed rates with other subsidy, and acquisition families, poor. villagers. priority will be provided to them

Chapter 5 Resettlement and Rehabilitation Plan 113. Based on (i) the wide negotiation and consultation with the APs; (ii) the resettlement programs proposed by every affected village; (iii) the existing national policies, laws and provincial regulations; and (iv) the ADB policy requirements on involuntary resettlement, the TA group and IA has compiled the RP with the assistance of the DI and county/municipal and township governments. 5.1 Objectives and Tasks

5.1.1 Resettlement Objectives 114. The overall objective of the resettlement and rehabilitation is to ensure that the living and production base of the affected area is rehabilitated, affected laborers reemployed, and the incomes and living standards of the APs increased or at least at the level before land acquisition. 115. Currently the rural population in the affected area is mostly working in agricultural production and their income comes from planting, cash trees, forestry operation products (such as mushroom and Chinese herb medicine, etc) and animal husbandry. Based on the actual productive and living standard of the every affected village, the corresponding village/group development plan is to be worked out to realize the following resettlement objectives: (1) The productive standard of the APs will be restored after the resettlement; （2）The APs incomes will be restored to at least the level before resettlement; （3）The affected public infrastructure, schools, hospitals, social safeguard, natural environment and traffic situations will be improved to some extent after movement; （4）Those families affected by house demolition will have their living environment improved by the resettlement; （5）For the enterprises, it is to mitigate the damage induced by the LAR and if inevitable the cessation lost will be compensated and the enterprises will be properly resettled for reconstruction to rehabilitate productive and business standard as soon as possible; (6）The rural productive land to be temporarily used will be recovered by contractors for farming with rehabilitation and increase the APs’ productive and business activities, employment opportunity and economic income as much as possible.

5.1.2 Resettlement Tasks 116. In the project there are 3,500 households and 14,000 persons involved in the land acquisition of the main road and linking road and 10 households with 40 persons involved in the house demolition. 5.2 Resettlement Principle 117. The basic guideline of resettlement for the Project is to respect the APs’ needs to maintain or improve their current production and living tradition. The resettlement affected households with land loss will take the readjustment of local agricultural structures (mostly of planting production, dry land changed to be irrigated and allocation of the remaining land within the village), and the APs will be rearranged in the original town, village and group. The LAR will firstly meet the APs’ basic physical living need. Meanwhile taking the long-term potential as start and making full use of the local resources, the LAR methods will be adapted to the local situations to explore the economic development means of the affected area. In the 59 area headed by agriculture, in the premise ensuring the foodstuff output rate, the second industry, forestry, pasture, sideline and the tertiary industry will be developed to set up proper industrial structure step by step supported by the local government. On the basis of skills training, the APs will make full use of the compensation provided by the government to ensure the living and productive standard be the same or be increased. The APs will try best to increase their own income steadily and sharing the development opportunity induced by the Project.

5.2.1 Resettlement Principle 118. Guided by resettlement policies in Section 4.1, the Project has formulated the following resettlement and rehabilitation principles for land acquisition and house demolition, (1) The Resettlement Plan content of land acquisition and house demolition covers resettlement and restoration of APs on the main road and 22 linking roads; (2) The local economic and social development, resource utilization, economic growth and environmental protection must be considered for making resettlement of land acquisition and house demolition. Considering local specific circumstance, make a feasible plan, to restore or improve their economic production, and create the basic condition for the long-term development; (3) The objective of the Resettlement Plan for land acquisition and house demolition is to “be beneficial to production, convenient for life”. (4) The standard and scales of restoration are to restore the original scale and levels in principle, at the same time, still pay attention to thinking continual development locally, to satisfy certainly the need in future. (5) The relationship between nation, collective and individuals is considered, also other relationship considered. (6) Make use of the local resources well, such as constructing water conservancy establishment, new cultivated farmland, paddy field changed from the drought land etc. strengthening the agriculture development strengths, making displaced persons’ living level attain or exceed the original level gradually. (7) Include clauses to improve living conditions of affected persons, such as, women, national minority, poor population and other vulnerable groups. 5.3 Overall Rehabilitation Plan 119. In the western section of the main highway, because the project construction mostly upgrade and reconstruct the existing highway alignment, it needs only limited requisition of land along the road line, and very few scattered houses need to be dismantled and removed. Most of affected families in this section will lose less than 10% of their land; also, the per capita land holding is very large, so the project will not cause significant impacts to the production and life of most families and village groups. In the eastern section of the highway, an expressway will be constructed along a new alignment; however, this area is less densely populated and is mostly forest land. Furthermore, the land is managed by State Farms or forest Farms, so the impact of the lost land will not be significant and affected workers will be rearranged within the Farms. After discussions with village families, groups, village, town and affected the owners of enterprise property, according to the suggestion of affected persons, and thinking over the reality of affected area, the basic restoration strategies are as follows: (1) All villagers who were affected by this project will be rehabilitated in the original community and will keep the original production systems, lifestyles, customs, habits and the social relations; (2) Houses of villagers to be demolished will be rebuilt by themselves, and the building materials of the old house will be used freely according to their will; (3) Concerning the partial loss of production, there are several solutions. Some village groups will readjust the reserve land and give these lands to families lost land. For the villages without remaining reserve land, affected persons will be (i) helped to change dry farmland into paddy field, and adjust agriculture industrial structure to improve the land utilization; and (ii) provided allowances for vocational training to develop non- agriculture 60

industry etc. so as to restore affected persons living level. Some State Farms and Forest Farms, the affected workers will be rearranged in other operations or farmland; the compensation will be retained by the affected administrative entity for reinvestment in new business opportunities. 5.4 Analysis of Livelihood Restoration Options

5.4.1 Natural Condition and Land Resources 120. The affected area is quite large and less developed in its economy correspondingly, especially its second Industry and tertiary sectors. The average net income per capital of villagers is equivalent to the average of the whole province. Due to low agricultural investment, few crop species, limited water conservancy facilities and flood, drought and other natural disasters, the production level of local farmers needs to be improved. Therefore, APs could improve their production level and productivity if they adopt scientific farming methods, heighten the agriculture production investment, upgrade crop category, improve water conservancy facilities, improve the control standard of fighting a flood, strengthen the ability of fighting a drought, and develop the potential of farmland. 121. Among the affected villages and towns, the maximum average farmland per capita is 19.9 mu, and the minimum is 4.6 mu, and the average is about 11 mu. Because the land acquisition for the new highway affects a narrow strip of land, for the impact on affected families is quite small. On average, 7.5% of the farmland per capita will be acquired. 122. Even if the affected families lose 10% of their farmland, land acquisition would not result in the serious influence in these villages because there is an abundant area of farmland area for most affected villages. Based on analysis of the 44 affected village groups, there are only 13 village groups which land acquisition is over 3% of original farmland and 8 village groups which land acquisition is over 4%, and only 2 over 6%. It would not result in upheaval in their lives to reduce few farmlands. On the contrary, the development opportunity brought after building road and compensation for land acquisition will enable them to participate in various non-agricultural production activities, which can improve their incomes. 123. For the State Farms and Forest Farms, the impact of land acquisition is even less, the available land for reallocation is larger, and the affected persons are State workers so their livelihoods are guaranteed. However, with the limitation on logging, some Forest Farms are quite poor and have few revenues for economic development. The new expressway, construction employment and compensation for land requisition will provide money for some new investments on the Farms (tourism) or may provide the chance for surplus workers to move into larger towns where employment opportunities, public services and living conditions are much better.

5.4.2 Key Features of Affected Persons 124. The affected rural farmers are mainly of Han nationalities. Since they have lived together for a long term, they have already formed a network within their communities. In order to minimize the impact on their living habits and avoid damaging their social network or extend the original cultivation distances of the affected households, while planning the RP the affected households relocated will be arranged in the original village or the villages or groups nearby. The rural affected households will mainly restore or increase their productive and living standard by means of perfecting basic farmland facilities, readjusting agricultural structure, improving crop species and strengthen agricultural development power. In addition, the affected households are encouraged to take part in the construction and service of the Project to meet the Project’s need of labor force and to increase their income as well. Therefore, the RP concentrates on the land base, encourages the affected households to work in agriculture and to create development opportunities for the second and tertiary industries. In this manner, there will be no adverse impacts to their lifestyles but they will have an opportunity to improve their production and incomes, especially those close to the Class II section of the highway.

5.4.3 Economic Development Potential of the Affected Area 125. The natural advantage of the affected area is rich farmland and a labor force empowered with fairly good potential for development. In the future economic development, the advantage of resources and improvement of traffic situation will benefit more types of production. For example, by means of increasing technical inputs and the APs’ skill development (education, scientific training, etc. – see Section 6.5.1), the productive standard will be enhanced for better development of agriculture, forestry and pasture, integrated development of trade, tourism and traffic. By utilizing land resource and developing production, the productive and living standard of the relocated households will be increased, and in the future the environment of the project area will be improved increasingly along with the economic development of the affected area. 5.4.4 Infrastructure of Production and Living (1) Traffic 126. The construction of the highway will affect the existing traffic means, and thus the designers have taken the corresponding engineering measures to mitigate the impact as much as possible. This includes constructing pedestrian bridges in the populated areas such as village main road, schools and hospitals for security of humans and livestock. Apart from this, for the local economic development, 3 linking roads will be upgraded (Nenjiang link road of class I with the length of 3.31 km; Geqiushan link road of class III with the length of 1.06 km; and Qixinpao link road of class III with the length of 0.73 km), which will benefit for many people in the project area. Therefore the construction of the Project will not only improve the traffic of the local residents, speed transportation of goods and personnel and improve the local economic development, but also improve the living environment and infrastructure of the local residents after resettlement. The traffic situation after reconstruction will lead to further development of the project area. (2) Water Supply 127. The rural residents in the Project area are mainly using the well water, which is very convenient for them. Some parts of the highway will go through some zones of irrigated land with advanced irrigation system, and thus during the implementation of the highway the main ditches and irrigation system will be avoided from damage as much as possible. For those inevitable to be damaged, the Project will take the responsibility to relocate and restore it to be the standard before movement as quickly as possible, to keep the irrigation continuous. Any losses from damages will be compensated by the Project. (3) Electric power supply 128. All of the electric power supply facilities affected by the Project will be reconstructed due to the original function and dimensions, to avoid impact on the electric power supply to the residents. Where necessary, temporary lines will be provided to maintain continuous electricity supply. (4) Medical service and education facilities 129. The construction of the highway will not affect any facilities of medical service, education or other social services. The facilities of the affected towns and villages can be utilized as usual. For the facilities (road, irrigation system, etc) damaged by the highway, the Project will be responsible to ensure there is no inconvenience to the APs. After the construction the highway, it will be more convenient for the farmers in the affected area to go to the towns or counties (municipalities) for schooling and medical service. (5) Fuel supply 130. Most of the residents’ fuel comes from the straws of the crops and thus the highway construction will have no impact on the fuel supply for the residents.

5.5 Rehabilitation Plan for LAR 5.5.1 Production Rehabilitation Plan 131. During the process of impact survey and resettlement planning, the resettlement planning group and the TA consultants had held some meetings to collect opinions among the affected counties, towns, administrative villages and groups. The meeting participants consist of officials from governments at every level, village leaders and affected villager representatives. In analysis of the data on geographic location, land resource occupancy, crop structure and residents’ income of every village, and on the basis of affected families’ and villager representatives’ opinions with full consideration of most of APs’ desire, there are two main approaches for production rehabilitation: one is to pay the compensation cost directly to the APs and the other one is to use the compensation cost by the collective for readjustment of agricultural structure, improvement of crop species, increase of technical inputs and increase of agricultural outputs. The APs have the right to choose reserve land or cash compensation. Due to the discussions, the instructive relocation, resettlement and economic rehabilitation methods for the affected villages had been determined as follows. (1) Cash compensation to affected households 132. One approach is to disburse the compensation cost directly to the affected individuals via affected village and village group in accordance with the compensation rate adopted by the government and the farmland amount damaged. It seems that most of the villagers surveyed selected this approach. If most affected families still have enough farmland left and they can develop new non-agricultural income sources. This approach is beneficial because it can ensure sufficient foodstuff consumption and provide extra funds for other non-agricultural production, such as economically profitable crops, pasture breeding and other sidelines. (2) Reserve land distribution and production development plan 133. The other approach is to distribute reserve land to APs. The compensation (land compensation and resettlement subsidy) will be disbursed to the affected village group for improvement of irrigation or development of non-agricultural business. This approach will ensure all affected villagers still have sufficient land after farmland acquisition and the compensation fund for land acquisition is united managed and utilized by the affected collective. The Land Administrative Law has stipulated the detailed procedure for the land transfer, and thus the local government and collective will take the charge of land redistribution. Note, for the State Farms and Forest Farms, this process is handled internally and is very simple because the lands are assigned annually to the workers. (3) Additional measures for economic rehabilitation 134. In order to restore the APs’ production and living standard, the following specific measures will be taken by the resettlement departments. 1) During construction, EA will encourage contractors to give jobs available to APs and use the local construction materials. The poor affected rural laborers with ability will have priority. Some men can find jobs as builders and women can do some small business, such as cooking food for the builders, selling some commodities or planting vegetation along the highway. 2) Local country credit union will give the resettlers priority, providing certain amount of loans, supporting them to develop individual and privately owned businesses. The industry and commerce department and the tax department will give them convenience in the application procedure, tax and so on. 3) A series of training will be provided to the APs by the county government. The training activities include training of agricultural technique and non-agricultural skills. At present, in order to develop the economy and improve the farmer’s income, each county government will prepare the skill training plan and necessary budget. The 5 affected city or county governments all ensure that the APs will have the priority to be trained each year and the training budget will be provided by the county government.

The agricultural training will be conducted by the agricultural bureau, pasture bureau, poverty reduction office and All China Women’s Federation and local agencies and it made up with new crop planting, new planting technique, new pasture breeding and other agriculture-based activities. And the relevant personnel of county agricultural technique stations will be invited to have these trainings on agriculture and planting in the area demolished. By all of these means, the quality and quantity of crops, pasture mature will be increased and then the APs’ income and profit will be increased. As for the non-agricultural training, the skills of all varieties of sideline or work outside will be involved in. The training will be funded by the Project and the relevant organizations such as agriculture bureau, labor bureau, women’s federation and others are responsible for this. 4) After the completion of the highway, the affected households will be given priority to be employed in the routine maintenance of the highway. 5) In accordance with the related regulations, the farmland reclamation cost submitted to the provincial government can be fully returned to every affected county for the land reclamation and production rehabilitation of the affected area. Also, about 70% of the forestry reclamation cost submitted to the provincial government can be returned to the affected counties for planting fruit trees or other economically profitable woods and production rehabilitation of the affected area. For this, the detailed implementation plan will be provided by every county government before land acquisition and the PMO will coordinate and supervise implementation. This will benefit farmers in the Project area, especially poor villages.

5.5.2 Resettlement Plan for House Demolition 135. In general, the house demolition and relocation in the Project is relatively small, because the affected 10 rural households will be resettled in the original village groups or towns. Due to the actuality of every affected household and every village group, the resettlers will be resettled nearby and the village groups who have the households with houses demolished will supply assistance in provision and selection of housing plot. (1) Selection and standard of housing plot 136. In the villages, there are 10 rural families need to be resettled in this project. According to the final survey result, there is a lot of remaining wasteland in the project area; all resettled families can resettle down in the village group very easily and get housing plot. According to the impact degree and actuality of every village, affected families will be resettled near their original houses and some wastelands in the village groups. Local government will provide these displaced persons help in examining, approving and selecting the housing plot and servicing the new housing plots. 137. For some families mainly engaged in the non-agricultural business, for example, some businessmen still have a little amount farmland, and they are rich enough. According to the government policy of becoming the small town, they can choose going to the nearby town and purchasing houses and house demolition provides them an opportunity to improve the residence environment on the contrary. (2) Plan for leveling housing plot and providing facilities 1) Ground leveling 138. Since the house reconstruction will be implemented in scattered the places with relatively proper geological situation within the village group will be selected out for ground leveling. After leveling the new houses can be constructed. For the independent relocated households there is no need to develop housing plot organizationally and the ground leveling activities will be taken over by the demolished households. 2) Civic facilities 139. Water supply. According to the existing condition of the resettlers, new wells will be built by resettlers themselves using compensation received for the old wells. 140. Electric power supply. Every relocated household will be connected with wire of

220v free of cost. 141. Road access. Because the new house plot will be located near the existing road or residential plots, generally, no new access road will need to be constructed. 142. Broadcasting and TV. Existing broadcasting and TV utilities will be used for the new housing. Affected television receiving equipment of resettlers will be reinstalled. 143. Hospital and school. All of the affected rural households will be resettled in the original village group and after resettlement they can utilize the existing facilities of schools, hospitals and clinics, so there is no impact compared with that before. (3) House reconstruction 144. While constructing the houses, the local tradition, agricultural production and socio-economic development demand will be taken into consideration. The construction will be carried out based on the wishes of the relocated households. The compensation for demolition, moving and transition subsidies will be directly provided to relocated households. During the house reconstruction phase, every household will be subsidized once with CNY500, including transporting cost for movement, subsidy for work-delay and cost for housing plot level up. 145. There are no urban households which need be resettled.

5.5.3 Enterprises Rehabilitation Plan 146. There is one enterprise affected by the highways, but it has stopped production. So only the compensation for house demolition needs to be paid to the Jinzhu Hongye Ltd. There is no need for rehabilitation.

5.5.4 Economic Rehabilitation Plan of Significant Affected Villages 147. Analyzing the effect of land acquisition, the RP compilation group investigated 13 village groups whose land acquisition area is over 3% of original farmland area. The main purpose of investigation is to (i) analyze the degree of impact by village group after land acquisition in detail, (ii) collect the current socio-economic information of villages and groups, and (iii) on the base of consulting widely local opinion, formulate a practical and effective village economic rehabilitation plan. 148. The basic procedure of the project group is as follows. For each key affected village group, the planning group firstly discuss with village cadres and representatives of affected families to verify the impact of land acquisition and economic displacement on village groups, especially affected families. Then, analyzing the industrial structure of villages and groups, income structure of village families, natural resources and local folk customs and so on, and consulting with consultative experts, the planning group brought forward primary opinions. At last, combining the feedback opinions of village cadres and affected families, and discussing with local government, the planning group made this final restoration plan. Table 5-1 shows village circumstance of affected village groups. Appendix 6 shows the village development plans of significantly affected villages. Table 5-1 Village Groups Who Lose More Than 3% of Total Farmland Farmland Proposed Farmland Popu- Population Affected Affected sites Land per Acquired area lation Losing Land* ratio Capita Land

Houshenli 8691 956 9.1 261 29 3.0% Haijiang Shenli Township village Nenjiang Qianshenli 4000 496 8.1 130 16 3.3%

Nenjiang Changjiang Changjiang 5026 787 6.4 157 25 3.1% Town Village Group 3

Farmland Proposed Farmland Popu- Population Affected Affected sites Land per Acquired area lation Losing Land* ratio Capita Land Xinghuo 2600 260 10 94 9 3.6% Xinghuo Group 4 Village Xinghuo 6000 603 10 284 29 4.7% Group 1 Xinglong Hongsheng 4086 531 7.7 185 24 4.5% Township Group 4 Wudalianchi Hongsheng Hongsheng 4860 602 8.1 195 24 4.0% village Group 5 Hongsheng 3354 770 4.4 205 47 6.1% Group 3 Xinfa Hexin 7327 1600 4.6 489 105 6.7% Township village Group 1 2021 390 5.2 74 14 3.7% Chengjiao Jianming Group 2 2041 375 5.4 86.2 16 4.2% Bei’an Group 5 Beihe 3200 380 8.4 138.9 16 4.3% Zhaoguang Group 8 Dongfeng 2700 310 8.7 109.5 13 4.1% * Equivalent to full loss of farmland 5.6 Rehabilitation Plan for Public Facilities 149. The special facilities affected by the highway will include irrigation channels, tractor-ploughing roads, electricity lines, and telecom lines. The detailed survey on the proper impact on the APs’ living style had been conducted and the investigations and interviews had been held on purpose of collecting the opinions and suggestions from the local governments, relative departments and the relocated households. These suggestions have been adopted in the Project design and RP as shown below. All the facilities will be rehabilitated fully, mitigating the impact as much as possible.

5.6.1 Rehabilitation Plan for Irrigation Channels 150. The implementation of the Project will mitigate the damage on the irrigation channels as much as possible. For those inevitable to be affected, the culvert will be placed through the road and the parallel open ditch in the protection area will be reconstructed along the road. The Contractors will ensure that the normal supply of irrigation water is available on time; otherwise, compensation will be pad for any loss of crop production.

5.6.2 Rehabilitation Plan for Electricity Lines 151. In accordance with the preliminary design, where electricity lines cross the highway, the high pole will be used; where the electricity lines affect the highway direction, the electric wire will be reconstructed in the particular section. The relevant electric power department will take the charge of planning and reconstruction of the electricity lines.

5.6.3 Rehabilitation Plan of Telecom Lines 152. Where telecom lines cross the highway, the high pole will be used; where the telecom lines affect the highway direction, the telecom lines will be reconstructed in the particular section. The relevant functions will take the charge of planning and reconstruction of the telecom lines.

5.7 Protection of Vulnerable Groups 153. For the vulnerable groups including the elders living alone, the disabled, woman-headed families, and particularly poor families, the Project will provide extra economic and physical assistance. According to the RP, the vulnerable groups will get special assistance from the Project, especially, (1) They will have first priority to receive the replacement farmland in the same quantity and quality from the reserve land; (2) For the relocated households belonging to the vulnerable groups, the IA of the Project will entrust the relevant towns and villagers to supply physical assistance while house reconstruction and movement through the local county or city government; (3) For all vulnerable groups, the IA will supply special subsidy to them for house reconstruction to keep their living standard. The subsidy standard will be determined due to the actuality and need; (4) The livelihood rehabilitation training for the APs will give priority to the need of the vulnerable groups for them to master the special skills for livelihood as much as possible and to remove the poverty. (5) The APs of vulnerable households will be given priority to be employed during Project implementation and operation. (6) The local government and village committee will help vulnerable APs gain the small amount of loans from the Poverty Reduction Office and/or the Women’s Federation, providing help and guide for their starting an undertaking, avoiding investment risk as far as possible.

Chapter 6 Resettlement Budget and Financing 154. The compensation cost for the LAR of the Project is made up of the physical cost, relevant taxes and costs, administrative cost; M&E cost, contingency and assistance to the vulnerable groups.

6.1 Basic Cost 6.1.1 Land compensation (excluding forest land) 6.1.1.1 Permanently requisition land compensation 155. The total expenditure of permanently requisition land is CNY 120.737 million. Among which, the expenditure of land requisition along the main alignment accounts to CNY 120.002 million, and the same along the link roads is CNY 735,000. (1) Compensation for the main highway

A：Compensation cost for requisitioned land of towns

Table 6-1 Compensation Cost for Towns Land Acquisition of Main Road (10,000CNY) Compensation District Township or Town Land area (mu) cost

Haijiang Township 427.6 598.3

Nenjiang Town 182.8 255.3

Nenjiang County Changfu Township 34.3 44.5

Shuangquan Town 231.4 332.5

Xinglong Township 1447.6 1913.7

Wudalianchi City Xinfa Township 550.3 1420.1

Erjing Town 151.4 159.6

Zhaoguang Town 455.2 494.9

Bei’an County Chengjiao Township 160.2 168.8

Total 3640.8 5387.8

B. Compensation cost for land acquisition of State farms’ land

Table 6-2 Compensation Cost for State Farms of Main Highway Land Compensation District Administrative title Acquisition Cost (10000CNY) Area (mu) Bei’an city Hongxing Farm 2456.8 2241.4 Fenghuangshan Farm 302.9 220 Huayuan Farm 78.7 57.1 Provincial Military Base 220.1 85.3 Yongfeng Farm 518.2 330.2 Weishan Farm 579.0 539.8 Geqiushan Farm 548.3 511.2 Yinlonghe Farm 959.0 894.1

Nenjiang Qixingpao Farm of Nenjiang County 704.1 656.5 County Nenjiang Farm 245.7 229 Total 6612.4

(2) Compensation for the link roads

156. The expenditure of permanently requisitioned land along the four link roads is CNY 735,000

Table 6-3 Compensation for Requisitioned Land of Link Roads (10,000CNY)

District Administrative title Compensation Cost

Weishan Farm 15.8 Wudalianchi City Geqiushan Farm 22.0

Qixingpao Farm 15.7 Nenjiang County Haijiang Township 20.0

Total 73.5

6.1.1.2 Temporarily occupied land compensation 157. The compensation fee for temporarily occupied land reaches CNY 7.161 million, among which, the main highway will account to CNY 7.103 million and the link roads will account to CNY 58,200. (1) Compensation for temporarily occupied land along the main highway 158. Not having determined the specific amounts of land to be occupied, the average comprehensive land values in each area were used to estimate the costs.

Table 6-4 Compensation Criterion for Township and Town’s Temporary Occupation of Land of Main Highway

District Nenjiang Wudalianchi Bei’an

Average Rate 20.89 25.39 15.8 (Yuan/ m2)

Table 6-5 Compensation for Temporary Occupied Land of Main Highway Compensation Land Acquisition Administrative Title Cost (10000 CNY) Area（mu） * Cuiluan Forestry Bureau (woodland） 52.5 31.5

Tongbei Forestry Bureau (woodland) 13.4 8.0

Suiling Forestry Bureau (woodland) 514.2 308.7

Nenjiang County 299.9 83.6

Wudalianchi city 296.7 100.5

Bei’an city 98.9 20.8

Hongxing farm 15.7

Total 1275.6 710.3 *The compensation cost is based on 20% (for 2 years) of the integrated price to calculate. The compensation cost = Land Acquisition Area × 20% × Average rate

Table 6-6 Compensation for Temporary Occupied Land of Link Roads

District Administrative title Cost (10,000 CNY)

Nenjiang County Haijiang Township 5.82

6.1.2 Forest land requisition compensation 159. As for forest land requisition, the project office entrusted forest investigation, planning and design sector to carefully carry out survey on forest industry sources requisition of affected forest bureaus and statistics of physical quantity of forest land and trees. 160. The budget of forest requisition in resettlement planning is calculated thereby. The compensation for forest land composes of forest land compensation fee, forest vegetation rehabilitation fee, resettlement subsidy fee and forest tree compensation fee. The compensation fee for forest land requisition totally accounts to CNY141.28 million, of which CNY21.92 million is for land compensation, CNY43.84 million is for forest rehabilitation, CNY16.44 million is for land resettlement subsidy and CNY59.08 million is for the timber cost. The compensation unit prices for forest land compensation fee and forest vegetation rehabilitation fee are respectively CNY3.0/ m2 and CNY6.0/ m2.

Table 6-7 Forest Land Requisition Compensation Cost of Main Highway (10000 CNY) Forestry Forestry land Forest Land Administrative District Area Compensation Vegetation Resettlement Total title (mu) Cost Rehabilitation Subsidy Cuiluan Yichun Forestry 1742.6 366.6 733.2 275.0 1,374.8 Bureau

Suiling Forestry Suiling 4810.9 986.3 1972.7 739.7 3,698.7 Bureau

Tongbei Bei’an Forestry 3843.1 793.0 1585.9 594.7 2,973.6 Bureau

Sishilihe Nenjiang 230.8 46.2 92.4 34.6 173.2 Forestry Farm

Total 10627.4 2192.1 4384.2 1644 8,220.3

161. Compensation cost for timber and wood along the highway are listed as Table 6-8.

Table 6-8 Compensation Cost for Timber and Wood (10000 CNY) County city(owner) Compensation cost Cuiluan Forestry Bureau 1601.6 Suiling Forestry Bureau 1896.2 Tongbei Forestry Bureau 1875.7 Hongxing Farm 166.2 Military farm 2.8 Bei’an City 41.8 Nenjiang 81.8 Wudalianchi City 55.3 Yinlonghe Farm 36.9 Weishan Farm 20.9 Geqiushan Farm 25.1 Qixinghe Farm 103.8 Total 5908.0

6.1.3 House compensation and resettlement subsidy 162. The cost of houses demolish compensation, relocation is CNY 117,800. Among which, the compensation fee for houses demolish is CNY 117,300, and the subsidy fee for resettlement is CNY 5,000. Table 6-9 House Demolish Compensation Cost Rates for rural Compensation Structure unit house（CNY/ Total Area (m2) Cost m2） (10,000CNY) Brick house（Class I） m2 550 1659.6 91.3

Brick house（Class II） m2 510 388 19.8

Brick house（Class III） m2 470 131.8 6.2

Total 2179.4 117.3

Table 6-10 Subsidy for Resettlement (CNY)

Rates（CNY/HH） Household Compensation Cost

Transporting cost for movement 200 10 2000

Subsidy for work-delay 100 10 1000

Flat cost for housing plot 200 10 2000

Total 5000

6.1.4 Infrastructures and attachments 163. The compensation for infrastructures and attachments affected by the project totally reaches CNY 11.4998 million. Among which, the compensation for infrastructures is CNY 11.094 million, and the same for attachments reaches CNY 405,800. Table 6-11 Compensation for Infrastructure and Attachment Rate Cost Item Facility unit Quantity （CNY）（10,000CNY） Concrete Pole 236 3000 85.8 electric pole Timber Pole 131 1000 17.1 electric pole Public photo-cable m 9425 100 98.3 facilities cable m 84710 100 887.1 high voltage Set 4 40000 16 tower CATV wire Pole 17 3000 5.1 Attachment Graves Grave 40 100 0.4 Fence m 965 100 9.65 Fencing wall m 417 150 6.26 （Brick） 72

Rate Cost Item Facility unit Quantity （CNY）（10,000CNY） Well Well 8 10000 8 signbrand unit 43 2000 8.6 Underground m2 54 1000 5.4 bee vault Corral m2 19 500 0.95 Toilet Set 40 300 1.2 Iron gate set 6 200 0.12 Total 1149.98

6.1.5 Enterprise house compensation and resettlement subsidy 164. As the enterprise has suspended operation, the removal only focuses on offices, and the structure of office is the same as that of resident’s housing, therefore, the compensation follows compensation criteria of resident’s house.

Table 6-12 Compensation for Enterprise Brick Compensation subsidy for Enterprise Total building（m2） Cost resettlement

Jinzhu Hongye Ltd. 117 54990 500 55490

6.2 Taxes and Fees 165. Cultivated land occupation tax: in accordance with Notice to Unite Cultivated Land Tax for Highway Construction issued by Financial Department, the cultivated land occupation tax is to be collected at CNY1.5/ m2. 166. Cultivated land reclamation fee: in accordance with Heilongjiang collecting and using method of cultivated land reclamation cost, the cultivated land reclamation fee is CNY333/mu. 167. Land administrative fee: in accordance with Heilongjiang Collecting and Management Method for Land Administrative Cost. For the farmland in county seat, municipality at county level, township planning area, the administrative cost is to be collected at CNY2.00 to 2.50/ m2; for non-farmland it is CNY1.50 to 2.00/ m2; for the farmland beyond the urban planning area, it is CNY1.00/ m2 and for the non-farmland it is CNY0.80/ m2. 168. For the land occupied temporarily, land restoration cost is 2.00/ m2.This fund will be used to restoration farmland that is temporarily used by project contractors. The contractor deposits a sum of money with the county land bureau, to ensure the land is properly restored. The deposit will be given back to the contractor once the restoration works are done satisfactorily. 169. The Project needs to pay all varieties of taxes and fees amounting to CNY22.213 million totally, shown in Table 6-13.

Table 6-13 All Varieties of Taxes and Fees for the Project Rate Qty Cost Taxes and fees Type (Yuan/mu) (mu) (CNY10,000)

Farmland occupation Farmland 999 7547.5 754 tax

Farmland 667 7547.5 503.4 Land administrative fee Non-farmland 533.6 12549.5 669.6

Land reclamation fee Farmland 333.3 7547.5 251.6

Farmland restoration Farmland occupied 1334 772.2 103.0 costs temporarily

Total 2281.6

6.3 Overhead cost 170. The overheads cost in use of daily office work in progress of land requisition, house removal and resettlement including purchase of office equipment, staff wages, transportation and resettlement staff training, etc, it will account for 1% of the basic expenditure, or CNY 2.819 million. 6.4 Contingencies 171. The physical contingency refers to the cost induced by the unexpected design change leading LAR change during the implementation of the Project. 172. The price contingency refers to the cost set aside for the change of compensation price because of price rise or other reasons properly along with time change. 173. The contingency is estimated 6% of the basic cost. 6.5 External M&E Cost 174. The external M&E cost is calculated at 0.5% of the basic cost. 6.6 Overall Budget of the LAR 175. The overall cost of land acquisition and resettlement amounts to CNY326.403 million, shown in Table 6-14.

Table 6-14 Resettlement Cost of Qiannen Highway Project Compensation cost (million CNY) Item Main Link Subtotal road road Compensation for permanent land 120.002 0.735 120.737 acquisition

Compensation for temporary land use 7.103 0.058 7.161

Compensation for forest land 141.283

Basic House compensation and movement I 1.173 Cost subsidy Enterprises’ house compensation and 0.055 movement subsidy Compensation for Infrastructure and 11.4998 attachments

Total of basic cost 281.9088

II Taxes and fees 22.816

III Overhead cost (1% of the basic cost) 2.8191

IV External M&E cost (0.5% of the basic cost) 1.4095

V Contingency（6% of the basic cost) 16.9145

Total 326.403

Staff Training 0.252*

*Training cost will shared by the Local Government and related Provincial Department, not included in the total budget. 6.7 Investment Plan by Year 176. In accordance with the schedule of implementation, the investment plan by year has been worked out with specifics shown in Table 6-15. Table 6-15 Resettlement Investment Plan by Year

Year 2008 2009 2010 2011 2012 合计

Investment（CNY 652.8 26,112.2 3,264.0 1,958.4 652.8 32,640.3 10000）

Proportion 2% 80% 10% 6% 2% 100%

6.8 Fund Allocation and Disbursement Procedure

6.8.1 Disbursement Principle 177. All of the costs related to LAR will be taken into the overall budget of the Project and the compensation cost for LAR and other costs will be disbursed by the project IA to the related enterprises and individuals via Land and Resources Management Bureau (LRMB); 178. The compensation cost for land acquisition will be disbursed by the LRMB to the administrative villages via bank and the latter will utilize the fund into production rehabilitation for the affected village groups; 179. The compensation for land acquisition will be distributed within 3 months of approval of the land acquisition agreements 180. To ensure the LAR is implemented smoothly, PMO will set up financial and supervising departments at all levels to keep all fund allocated in time.

6.8.2 Organizations Responsible for Resettlement Finance 181. The organizations that are responsible for the rural LAR fund is the special financial ones in the project owner, LRMB, township and village committee. 182. The resettlement fund adopts the allocation system step by step from the superior to the subordinate and the organizations at all levels will follow the financial balance and audit institutions strictly to regularly check and report fund and usage, to suggest mending and remedy measures for the unexpected situation to keep the fund can be allocated and used as planned. 183. To keep the resettlement fund used for its special usage, prohibiting any organization’s cut or embezzlement.

6.8.3 Funds Flow 184. Based on the compensation policy and standards stipulated in the resettlement plan, the Project Office shall sign “Houses Removal Agreement” and “Land Acquisition Agreement” with County Land Bureau. 185. The County Land Bureau (on behalf of the Project Resettlement Office) shall sign the compensation agreement for land acquisition with Village Committees concerned. 186. According to the related policy stipulations, the land compensation fee and subsidy will be paid by the Project Office to the County Land Bureau. The County Land Bureau will distribute funds to affected villages, village groups and affected individuals with assistance of township governments. The flows of compensation funds are presented in Table 6 – 16.

Table 6-16 Funds Flow

Villages or Land compensation → PMO → → LRMB → → Groups Villages or Resettlement subsidy → PMO → → LRMB → → → HHs Young crop Resettlement → PMO → → LRMB → → compensation HHs Houses & auxiliaries Resettlement → PMO → → LRMB → → compensation HHs Temporary land → PMO → → LRMB → → Individuals Compensation Moving and Transfer Resettlement → PMO → → LRMB → → Allowances HHs

Compensation for → PMO → → LRMB → → Individuals scattered trees

Special facilities Relevant line → PMO → → compensation agencies Resettlement planning & design → PMO → Design institutes fee

Relevant departments M&E cost → PMO → and external monitor Implementation → PMO → Resettlement Implementation agencies management fee

Chapter 7 Resettlement Institutions 7.1 Organization Framework 187. The resettlement organizations are key to ensure the resettlement planning, management and implementation of compensation, resettlement and income restoration and reconstruction. The organizations set up for or involved in the LAR and resettlement of the project include: (1) Project Resettlement Office (PRO) (2) City(County) Land and Resources Management Bureau (5 cities and counties) (LRMB) , 2 Forest Bureaus (FB) under General Forest Bureau and 2 State Farms Management Bureaus (FMB) under the Provincial General Management Bureau of State Farms. (3) Township Government and Forest Farms (4) Village committee and Village group (5) Independent External MEA (6) Heilongjiang Transport Planning, Survey and Design Institute (DI) The organization framework of resettlement is listed as following Figure 7-1.

Figure 7－1 Resettlement Organization Chart

PMO

PRO

LRMB External

FB FMB MEA

Forest and Farm

VC Workers

Enterprise or Owner APs Other owners 7.2 Responsibilities of Each Organization

7.2.1 Heilongjiang Qiannen Highway Project Resettlement Office (PRO) 188. Main responsibilities: (1). Organizing and leading functions: To organize the related departments including Heilongjiang Traffic Planning, Reconnaissance and Design Institute and HSSA to conduct LAR survey and socio-economic survey with analysis and treatment of survey data; to entrust

HSSA to study out the survey report on the socio-economy and poverty along the highway and to study and carry out the SDAP along the highway. (2). To organize the compilation of RP: To entrust HSSA, on the basis of full negotiation with the affected households and enterprises, to prepare the RP due to the actual data of preliminary design and state and provincial regulations and policies. (3). To disclose the LAR policies: LAR policies mainly include state and Heilongjiang policies and regulations on LAR, compensation rate and methods of every types, rights and obligations of the APs and implementing procedures. (4). To provide operational training for the resettlement personnel at county level: Its main purpose is to make the local LAR personnel get familiar with the LAR activities and procedure, master the specific operational methods, and treat the potential issues in the LAR for higher working efficiency; (5). To compile implementing timetable for RP (6). To sign contract with county (municipality): Due to the compensation rate and timetable stipulated in RP, the organizations are to sign implementing contract with local resettlement office to clarify the rights, obligations and benefits. PMO will supervise and urge the local resettlement departments to implement the RP strictly due to the requisitions of contract; (7). To allocate and supervise the use of compensation cost and the like (8). To organize and coordinate the relations between the LAR departments (9). To transact the relocation procedure (10). urges the implementation of RP (11). To arrange the supervision activities of resettlement. To examine the experience and qualification of the independent MEA and to sign M&E contract with an experienced MEA with introduction of RP to the MEA (12). To check independent M&E report (13). To prepare report with procedure and submit to PMO (14). To supply resettlement budget; and (15). To lead internal monitoring and supervision activities, compile internal progress report, to participate into the audit of fund disbursement and use, and prepare and submit a resettlement completion report to ADB.

7.2.2 County (City) LRMB/PROs 189. The LRBs are the key departments who are responsible for the specific implementation of the RP. They will possess the technical ability to manage the survey data and also have some authority to make decisions on some specific issues. During the key phase of the implementation, they will be supported fully by all of the relevant departments. 190. Its main responsibilities are, (1) Due to the LAR data supplied by PMO and resettlement policies, the TOR of RP in the prefecture will be prepared. The compensation rate and timetable of RP will be consistent with the RP formulated by PRO of Heilongjiang High-graded Highway Administrative Bureau; (2) To sign implementing contract with PRO of Highway Project; (3) To implement RP; (4) To supervise on the land acquisition, movement of houses, infrastructure, attachment, enterprises and institutions; (5) To conduct the training for township resettlement personnel; (6) To instruct and supervise on the implementation of township resettlement groups;

(7) To accept and allocate the compensation fund in name of the affected enterprises and individuals and supervise on its use; (8) To be responsible for solution of the disputes in traffic, water conservancy, telecom and environment pollution raised in the implementation of the Project; (9) To submit working report to PRO of Road II Highway Project.

7.2.3 Forest Bureaus (1) Due to the LAR data supplied by PMO and resettlement policies, the TOR of RP in the prefecture was prepared. The compensation rate and timetable of RP is consistent with the RP formulated by PRO of Heilongjiang High-graded Highway Administrative Bureau; (2) To implement RP within the jurisdiction of forest bureaus; (3) To supervise on the land acquisition, movement of houses, infrastructure, attachment, enterprises and institutions; (4) To submit working report to PRO of Qiannen Highway Project.

7.2.4 Management Bureau of State Farms (1) To compile TOR of resettlement for Farm Management Bureau based on LAR data and material and resettlement policy which are provided by Qiannen highway PMO. (2) To implement TOR of resettlement (3) To monitor land acquisition, movement of houses, infrastructure and attachment, enterprises and institutions; (4) To submit working report to PRO of Qiannen Highway Project.

7.2.4 Town and Township Government 191. As the specific IA for resettlement, every township government involved in the Project along the Highway takes over the following obligations, (1) To check, supervise and record the resettlement activities in the prefecture; (2) To assist the county PRO to supervise on the land acquisition, movement of houses, infrastructure, attachment, enterprises and institutions. (3) To supervise on livelihood restoration; (4) To be responsible for examination and approval of village-based agricultural production rehabilitation planning; (5) To submit working reports to the county PRO; (6) To assist the project owner to solve living and production of the affected households; (7) To organize the approval procedure for the housing plot and reconstruction of the new houses for relocated households; and (8) To be responsible for coordination and solution of the disputes in LAR, traffic, water conservancy, telecom and environment pollution raised in the implementation of the Project.

7.2.5 Forest Farms and State Farms 192. As the specific IA, every forest farms involved in the Project along the Highway takes over the following obligations: (1) To check, supervise and record the resettlement activities in the prefecture; (2) To assist the forest bureau to supervise on the land acquisition, movement of houses, infrastructure, attachment, enterprises and institutions.

(3) To be responsible for examination and approval of village-based agricultural production rehabilitation planning within their farms; (4) To submit working reports to the county PRO; (5) To assist the project owner to solve living and production of the relocated households; (6) To organize the approval procedure for the housing plot and reconstruction of the new houses; (7) To be responsible for coordination and solution of the disputes in LAR, traffic, water conservancy, telecom and environment pollution raised in the implementation of the Project.

7.2.6 Village Committee 193. Main responsibilities are the following: (1) To check the LAR data for submission, land and asset property ownership and access, population and labor force; (2) To participate in the LAR survey; (3) To identify and approve resettlement site; (4) To report the complaints of APs; (5) To formulate agricultural rehabilitation and production rehabilitation planning (6) To organize house demolition and reconstruction and to supply help to the vulnerable group, including ethnic minorities; and (7) To report working progress.

7.2.7 Survey and Design Institute (Highway DI) 194. Main responsibilities are the following: (1) To determine the LAR scope and to conduct physical indicator survey; and (2) To avoid or minimize LAR impact by optimization of design.

7.2.8 External MEA 195. As the independent external MEA of the Project, has the following obligations: (1) Conduct household baseline survey and set up database (provide copy to ADB); (2) As the independent supervision institute, it monitors RP and its implementation and submits M&E reports to EA and ADB. The responsibility is detailed in Chapter 9; (3) Offer TA suggestions to PRO and IA at every level during the period of survey and RP compilation. 7.3 Staffing 196. Due to the demand of resettlement, every organization will be staffed with full-time personnel and equipped with computers and other official facilities as well. The details can be seen in Table 7-2.

Table 7-2 Staffing of LAR Personnel Resettlement Personnel Qualification Operational Affiliated Organization Total of the Personnel Time Facility 5 Junior college PRO 10 August 2009 computer above s 5 county LRMBs Forestry Bureau under General Forestry Technical 20 Bureau 60 secondary school August 2009 computer Management Bureau above s under the General Management Bureau of State Farms External MEA 5 Undergraduate Dec. 2009

7.4 Measures to Strength Organizational Capacity 197. To ensure the LAR and resettlement activities be implemented smoothly and successfully, the PRO of the Project will adopt the following measures to strengthen the capacity of the organizations at all levels. (1) To select the personnel with quite good business quality, strong responsibility, strong organizational and coordinating abilities and knowing of computer to keep the personnel relatively steady; (2) To strengthen the training on the basic knowledge of ADB policy and LAR to improve their business quality. The training contents include State and local policies and regulations of LAR, ADB resettlement handbook, data management in computer, LAR implementing approaches, fund management method, AP’s living and production rehabilitation measures, and treatment of AP’s grievance. (3) Supply adequate fund and facilities for the relevant organizations; and (4) Establish a database to ensure the smooth information reporting between organizations, and strengthen reporting and internal monitoring system to solve problems as soon as possible.

7.5Training Plan for Management Personnel (1) Training purpose 198. To conduct training for the management and technical personnel related to the LAR of Qiannen Highway Project to make know of the relevant LAR contents and to ensure the RP be taken into action comprehensively. (2) Training receivers 199. Due to the working contents, the training is classified into two types. 200. One is the LAR management personnel. Its purpose is to have training on LAR and urgent measures to the senior personnel of the Project totally 42 persons including 3 from the PMO, 2 from the transport department, 2 from DI, 2 from external MEA, 3 from every county (municipality), 6 from forestry bureau and 12 from farm bureau . The purpose of the training is to make them known of the new method and management experience of the advanced countries and it is to propaganda and populist among all the LAR staff in the Project.

201. The other one is the LAR working personnel. Every county (municipality) has 10 persons and totally it amounts to 50. The purpose of training is to understand the relevant contents and resettlement policy of the Project to assist and ensure the RP be implemented smoothly. (3) Training style 202. The training is classified into two levels, the super management personnel is trained in Harbin with sponsorship of PMO and lecturers of ADB officials, other government officials and consultants; the general LAR personnel is to be trained in every county (municipality) with sponsorship of every county state land resource bureau and instruction of PMO. (4) Training Time 203. Due to the training receivers and contents, the training is conducted in three times: First, 2009.7.15~20 Second, 2009.12.1~15 Third, 2010.3.15~20 (5) Training Content 204. Training content includes project profile and background, resettlement law and rule, resettlement plan, resettlement management, procedure, M&E, funds and its management, monitoring control and complain treatment etc. (6) Training cost 205. The cost for each training is CNY 84,000 and the total is CNY 252,000 for whole.

Chapter 8 Negotiation, Participation and Appeal Process 8.1 Public Participation

8.1.1 Purpose of Participation 206. The participation or consultation of APs is the start of all resettlement activities, which is also been taken as basic method. The APs active participation into the whole process of relocation such as project design, planning and implementation, formulation of policies or other decision-making of significant issues will be very helpful for better RP, for smooth implementation of the Project and for reduction of adverse impact.

8.1.2 Principal Parts of Public Participation 207. The stakeholders refer to those who have direct benefit in the development of the Project including key stakeholders and subordinate stakeholders. Also, the stakeholders to participate in the consultation refer to the people affected by land acquisition and relocation (including those be relocated and the local residents in the resettlement area). The key stakeholders in this project are APs, county leaders, village leaders, officers of farm and forestry bureau, township PRO, county LRMB and PMO.

8.1.3 Principle of Public Participation 208. The principle of public participation includes: (1) Information sharing. The information sharing is the firstly important principle for the participation. During the preparation and verification phase, the project management will prepare for sharing all information about the Project including planning, design, several programs for selection and probable impact of the Project. During the process of preparation, planning and implementation, the information to be publicized includes that on the Project and its impact, compensation policy and disbursement progress, RP, possible resettlement sites, IA and timetable and grievance procedures and etc. (2) Attention to the significant issues. APs’ participation into the preparation of RP is helpful to make know of the significant issues that APs focus on. (3) AP’s participation has the following detailed contents,

＊ During the process of RP design and implementation, the people relocated and the local residents of the resettlement sites have been consulted regarding their opinions and the RP has tried its best to represent the APs’ desire.

＊ To determine the final selection from the several programs with APs and these selection include all kinds of compensation and assistance plan, RP for single family and resettlement style based on community or family.

＊ To participate in every phase of the Project. All of the stakeholders or their representatives will participate into all phases of the Project. (4) Organizational framework. To ensure the stakeholders participate in the decision-making of the whole project, the proper organizational framework will supply opportunity for the APs to speak out their focus to fully represent the desire of the vulnerable groups of minorities, those who have no legal property rights of land, poor population and women.

8.1.4 Participation Activities Conducted and Future Plan 209. All of the stakeholders especially the APs, village leads and community organizations (e.g., All China Women’s Federation) will participate in all the phases of the Project. Detailed participation activities already conducted and the participation plan in the future can be seen in Table 8-1 Table 8-1 Participation Activities and Participation Plan in the Future Phase Key activities AP’s participation Timetable

z publicize information of the project intent z socio-economic survey in the affected area z determine the z participate into the stakeholders and groups public meetings affected by the Project z determine to select z supply design programs the project design to for comparison to be mitigate or increase convenient to mitigate Oct 10th Determination, demolition relocation 2008 to Jan. social z assist to study out all z propose and select the 10th 2009 assessment of the programs of programs of and survey compensation, compensation, resettlement and resettlement and income income rehabilitation rehabilitation for selection z set up coordination committee participated by project owner, local governments and APs representatives z help to select compensation plans and resettlement sites z participate into survey z census on the APs z help to study out z discuss about several programs of compensation rates, compensation, compensation styles and movement and scopes income z discuss about income rehabilitations for Project rehabilitation selection selection by means Feb. 1st Feasibility z submit compensation of public meetings 2009 to Sep. Study rights and qualification and family surveys 30th 2009 Research and articles z participate into the RP preparation z prepare for compensation discussion meetings and RP of residents in the z publicize LAR information resettlement sites z determine grievance z put forward opinion procedure on the qualification

article z assist the prepare compensation and RP z put forward suggestions on

Phase Key activities AP’s participation Timetable grievance and dispute transaction

z take part in the local representative z set up local Group and decision-making participate into the committee or local activities of representative Group implementation Implementation participated by the APs z take part in the local of the Project z sign agreement on LAR decision-making Oct. 1st and RP z community organizations committee 2009 to Sep. participate into the z sign agreement on 1st 2011 implementation of RP LAR z ensure the validity of the z make decisions on grievance procedure management of public land z utilize the existing grievance transaction system

Sep. 1st M&E of z assist survey z M&E on the 2011 to Dec. resettlement z participate into M&E implementation of RP 30th 2011

8.1.5 Methods of Public Participation (1) Direct Participation: 210. Villager group discussion. By means of group discussion with the villager representatives or village leaders, the key issues that the villagers focus on are discussed to collect villagers’ opinion and then collect the local governments’ suggestions on the issues. 211. Coordination meeting of enterprises and institutions are to negotiate fully with the enterprises and institutions on movement sites, compensation rates and the other issues to get final consensus. 212. Project awareness and disclosure. Heilongjiang Qiannen Highway PRO prepared Resettlement Information Booklet (RIB) and will distribute it to the APs to provide information on project impact, compensation rates, resettlement policies, APs rights and obligations, management organizations and participation procedure for them to make know of the details of the RP. (2) Indirect Participation 213. The public can reflect complaints, opinions and suggestions to the village committees and PRO departments, MEA at every level. The PRO and county resettlement office will give feedback of transaction due to the procedure.

8.2 Public Participation in the Preparation Phase of the Resettlement Plan

8.2.1Public Participation in the Pre-feasibility Study Phase 214. During the pre-feasibility study period, the PMO encouraged public consultation in project areas. Some meetings were held with the village community, the villagers in order to get their opinion about the project, especially on resettlement and land acquisition.

8.2.2 Public Participation in the Feasibility Study Phase 215. During the feasibility study period, the PMO encouraged public consultation in project areas. Some meetings were held with the village community, the villagers in order to get their opinion about the project, especially on resettlement and land acquisition. 8.2.3 Public Participation during the Process of RP Compilation (1) Participation during the Process of Policy Making 216. To study out the proper policies of compensation, the RP compilation group had conducted wide consultation with the 5 county LRMBs, construction bureaus, electric power bureaus and telecom company in succession for several times, including the departments of farm, forestry bureau. The details of participating departments and participants are shown in Table 8-2.

Table 8-2 Participation during the Process of Policy Making

Participating Time Participants Contents Style Departments

Nenjiang Communication Bureau, Nenjiang Compensation rate Land Bureau , for land acquisition, Nenjiang Forestry solution of rural Bureau , Nenjiang housing plot, Water Affairs Bureau, compensation rate Negotiation Nenjiang Construction Dec. 15th Principal of for forest land, in Bureau, Nenjiang 2008 department reconstruction price meetings Electric Power of channel, pipeline, Company, Nenjiang rehabilitation rate Netcom Company, for electric and Nenjiang Mobile telecom facilities Company and Nenjiang Unicom Company

Participating Time Participants Contents Style Departments

Bei’an Communication Nov. 17 th Principal of Compensation rate Negotiation Bureau, Bei’an Land 2008 department for land acquisition, in Bureau , Bei’an solution of rural meetings Forestry Bureau , housing plot, Bei’an Water Affairs compensation rate Bureau, Bei’an for forest land, Construction Bureau, reconstruction price Bei’an Electric Power of channel, pipeline, Company, Bei’an rehabilitation rate Netcom Company, for electric and Bei’an Mobile telecom facilities Company and Bei’an Unicom Company

Wudalianchi Compensation rate Communication for land acquisition, Bureau, Land Bureau , solution of rural Forestry Bureau , housing plot, Water Affairs Bureau, compensation rate Negotiation Nov. 18th Principal of Construction Bureau, for forest land, in 2008 department Electric Power reconstruction price meetings Company, Netcom of channel, pipeline, Company, Mobile rehabilitation rate Company and Unicom for electric and Company telecom facilities

Suiling Compensation rate Communication for land acquisition, Bureau, Land Bureau , solution of rural Forestry Bureau , housing plot, Water Affairs Bureau, compensation rate Negotiation Nov.20th Principal of Construction Bureau, for forest land, in 2008 department Electric Power reconstruction price meetings Company, Netcom of channel, pipeline, Company, Mobile rehabilitation rate Company and Unicom for electric and Company telecom facilities

Yichun Compensation rate Communication for land acquisition, Bureau, Land Bureau , solution of rural Forestry Bureau , housing plot, Water Affairs Bureau, compensation rate Negotiation Nov. 22th Principal of Construction Bureau, for forest land, in 2008 department Electric Power reconstruction price meetings Company, Netcom of channel, pipeline, Company, Mobile rehabilitation rate Company and Unicom for electric and Company telecom facilities

Participating Time Participants Contents Style Departments

Construction station, Electric Power Station, Compensation rate Netcom company for land acquisition, station, Mobile solution of rural company station, housing plot, Unicom company compensation rate Negotiation station, Land and Nov. 26th Principal of for forest land, in resources station, 2008 department reconstruction price meetings Forestry station, and of channel, pipeline, water affairs station of rehabilitation rate Geqiushan farm, for electric and Weishan farm, 93 telecom facilities Agricultural Cultivation Bureau Resource division, Compensation rate Land and resource for land acquisition, division, Construction solution of rural division, Transport housing plot, management station compensation rate Negotiation Nov. 30th Principal of of Suiling Forestry for forest land, in 2008 department Bureau, Tongbei reconstruction price meetings Forestry of of channel, pipeline, Songhuajiang Forestry rehabilitation rate Bureau, and Cuiluan for electric and Forestry Bureau telecom facilities

Compensation rate for land acquisition, solution of rural housing plot, compensation rate Negotiation Provincial Justice Dec.10th for forest land, in Department 2008 reconstruction price meetings of channel, pipeline, rehabilitation rate for electric and telecom facilities

(2) Participation in process of socio-economic survey 217. The RP compilation group had collected socio-economic situation of the counties or municipalities and townships along the highway and visited statistics bureau, poverty reduction office and the other departments. The participating time, process, departments and participants can be seen in Table 8-3. Table 8-3 Participation during the Process of Social Economy Survey

Participating Time Participants Contents Style Departments

Nenjiang Statistical Bureau, civil administration bureau, Social Poverty alleviation office, Nov. 17th economy Negotiation in Religion and minority Principal 2008 situation along meetings affair office, and the highway statistician of town and township along the alignment

Statistic Bureau, Civil Bureau, Poverty alleviation office, Social Religion and minority Nov. 18th economy Negotiation in

affair office, and the 2008 situation along meetings statistician of town and the highway township along the road alignment of Bei’an City

Statistic Bureau, Civil Bureau, Poverty alleviation office, Social Religion and minority Nov. 20th economy Negotiation in affair office, and the 2008 situation along meetings statistician of town and the highway township along the road alignment of Wudalianchi City

Statistic Bureau, Civil Bureau, Poverty alleviation office, Social Religion and minority Nov 22th economy Negotiation in affair office, and the 2008 situation along meetings statistician of town and the highway township along the road alignment of Suiling County

Participating Time Participants Contents Style Departments

Statistic Bureau, Civil Nov. 15th Social Negotiation in Bureau, Poverty 2008 economy meetings alleviation office, situation along Religion and minority the highway affair office, and the statistician of town and township along the road alignment of Yichun City

Persons who responsible Nov. 24th principal Social Negotiation in for statistic, civil affairs, 2008 economy meetings poverty alleviation and situation religion and minority affairs of Hongxing Farm

Persons who responsible Nov. 26th principal Social Negotiation in for statistic, civil affairs, 2008 economy meetings poverty alleviation and situation religion and minority affairs of Geqiushan Farm and Weishan Farm

Persons who responsible Nov, 30th principal Social Negotiation in for statistic, civil affairs, 2008 economy meetings poverty alleviation and situation religion and minority affairs of Suiling Forestry, Tongbei Forestry and Cuiluan Forestry

Provincial Justice Dec. 10th Negotiation in Legal issues Department 2008 meetings

Persons who responsible for statistic, civil affairs, Social April, 2th poverty alleviation and economic Communication 2009 religion and minority survey affairs of Yinlonghe farm

（3）Public Participation of Impact Determination and Village group Development Plan 218. In order to study out the feasible rehabilitation plan for significant village groups and the relocation program for the seriously affected enterprises, the RP compilation group had conducted wide public participation and consultation with the LRMB, forest bureaus especially village committee leaders, representatives of affected rural households and property owners of affected enterprises. The participating time, process, departments and participants can be seen in Table 8-4

Table 8-4 Public Participation of Impact Determination and Village group-based Rehabilitation Plan Participating Time Participants Contents Style departments Measure out the proportion of permanent farmland Nenjiang State Land acquisition Resource Bureau, compared to the Forest Bureau, original Communication farmland, Bureau, Land measure the assistant of the APs of Nov 18th Principle, Negotiation in administrative permanent land 2008 households meetings villagers along the acquisition, highway, village rehabilitation committee chief, part measures of of affected rural affected village households, affected groups and rural enterprises farmers and selection of housing plot of the village groups

Measure out the proportion of permanent farmland Bei’an State Land acquisition Resource Bureau, compared to the Forest Bureau, original Communication farmland, Bureau, Land measure the assistant of the APs of Nov. 19th Principle, Negotiation in administrative permanent land 2008 households meetings villagers along the acquisition, highway, village rehabilitation committee chief, part measures of of affected rural affected village households, affected groups and rural enterprises farmers and selection of housing plot of the village groups

Wudalianchi State Measure out the Land Resource proportion of Bureau, Forest permanent Bureau, Nov. 22th Principle, farmland Negotiation in Communication 2008 households acquisition meetings Bureau, Land compared to the assistant of the original administrative farmland, villagers along the measure the

Participating Time Participants Contents Style departments highway, village APs of committee chief, part permanent land of affected rural acquisition, households, affected rehabilitation enterprises measures of affected village groups and rural farmers and selection of housing plot of the village groups

Measure out the proportion of permanent farmland Suiling State Land acquisition Resource Bureau, compared to the Forest Bureau, original Communication farmland, Bureau, Land measure the assistant of the APs of Nov. 23th Principle, Negotiation in administrative permanent land 2008 households meetings villagers along the acquisition, highway, village rehabilitation committee chief, part measures of of affected rural affected village households, affected groups and rural enterprises farmers and selection of housing plot of the village groups Yichun State Land Nov. 16th Principle, Measure out the Negotiation in Resource Bureau, 2008 households proportion of meetings Forest Bureau, permanent Communication farmland Bureau, Land acquisition assistant of the compared to the administrative original villagers along the farmland, highway, village measure the committee chief, part APs of of affected rural permanent land households, affected acquisition, enterprises rehabilitation measures of affected village groups and rural farmers and selection of housing plot of the village groups

Participating Time Participants Contents Style departments Leaders of Zhaoguang April 2th, Communication Social and town, Bei’an city 2009 by phone economic survey

8.3 Public Participation during the Implementation of RP

8.3.1 Public Participation in House Reconstruction （1）Compensation rate for house demolition 219. The compensation rate for house demolition will be discussed directly with the relocated households. Before movement, the relevant LAR and resettlement departments will negotiate with the relocated households and sign the agreement on the compensation rate. The negotiation result will be publicized before the signature of agreement for the public supervision before movement.

（2）House Reconstruction of the Relocated Households 220. In the LAR preparation phase, the relevant departments had conducted surveys on the resettlement sites and house construction methods. Due to the survey result, most of the relocated households would like to be resettled in the original village group and construct the houses themselves. The governments at every level will provide assistance in different stages of the house reconstruction.

（3）Old house demolition 221. All of the houses to be demolished will be compensated at the replacement price without discount. The relocated households can choose to demolish before reconstruct or reconstruct first and then demolish, according to their own willingness. The usable materials from the old houses can be used by the relocated households without deduction from the compensation fund.

8.3.2 Participation in Production Rehabilitation 222. The APs including the indirect APs of the affected village groups will be rehabilitated due to the specific measures in the rehabilitation plan and the APs participated into the whole process.

8.3.3 Participation in the Use of Compensation Fund for Land Acquisition 223. In accordance with the land property ownership of the affected area, the compensation fund for land acquisition will be directly disbursed to the administrative village or village group and the latter must not skimp or embezzle. The compensation fund will be used on clear purpose in planning. The use of the compensation fund will be discussed in the villagers meeting and after two-third villagers approve, it can be used with the supervision and participation of the villager representatives.

8.3.4 Public Participation during the Implementation Process 224. The construction of the Project will cause a certain impact on the local communities. In order to enhance the APs benefits from the Project, the local residents will be encouraged to take part in the construction of the Project and create the advantage to utilize the local materials and labor force.

8.4 Disclosure of LAR and Resettlement Policies and RP 225. In order to inform the APs of the RP contents, the LG and PRO at every level will publicize the resettlement policies and encourage the public to participate in the activities by the following means.

8.4.1 Publicize Measurement Results of the Project Impact 226. After the completion of detailed investigation and measurement on the LAR and resettlement for Qiannen Highway Project, all types of impact will be publicized to the APs and communities, which will be conducted before the disbursement of compensation fund.

8.4.2 State Compensation Policies 227. Due to the new provisions of the Land Administrative Law, before land acquisition, the affected villages and village groups will be informed of the compensation program including compensation rate for land acquisition and house demolition. All of the compensation rate will be agreed before LAR.

8.4.3 Preparation and Distribution of RIB for the relocated Households 228. The PRO of the Project has drafted a detailed RIB of LAR (see Appendix 2) to ensure the local governments and residents understand the RP, stipulations of compensation and resettlement policies, rights protection and grievance procedure. The RIB will be handed out to every relocated household in the Project area in the end of October 2009. Before the implementation of the RP and resettlement, the relevant LAR notifications will be publicized via newspaper, broadcast, TV and bulletin board in the language the APs understand among the affected towns, villages and village groups, mainly to increase understanding of the resettlement policies, compensation rate and grievance procedure. The work should be implemented as soon as possible after Heilongjiang high-grade Highway Management approves the RP.

8.4.4 Hold Meetings 229. To fully understand the relevant resettlement policies, regulations, rules and specific compensation rate, the public meetings will be held for the APs in October 2009 8.5 Grievance and Appeal Mechanism 230. During the process of RP compilation and implementation, the public participation is to be encouraged. However in the whole process there will likely be some unexpected problems. To solve the problems effectively and ensure the successful implementation of the construction and land acquisition, a transparent and effective letter grievance and appeal channel will be set up and the procedure includes the following steps. (1). Step 1 231. If the relocated households have any rights been intruded at any aspect of the LAR, they can put forward their complaints and appeal to the village committee by oral or written forms. If just oral complaints, the latter will record down, review and give solution or decision within 2 weeks. (2). Step 2 232. If the APs are still dissatisfied with the decision of Step 1, they can appeal to township government/forest farm. After review, the township government/forest farm will give a decision within 2 weeks.

(3). Step 3 233. If the APs are still dissatisfied with the feedback of Step 2, they can appeal to the county LRMB/forest bureau. After review, they will receive the feedback. (4). Step 4 234. If the APs are still dissatisfied with the decision of the county LRMB/forest bureau, they can appeal to the PRO directly. (5). Step 5 235. If the APs are still dissatisfied with the feedback of the Project PRO, after they receive the feedback they can sue to the People’s Court following the civil laws procedure. 236. The specific appeal procedure can be seen in Figure 8-1. 237. The relocated households can appeal in any aspect of the relocation including compensation rate and price. 238. Via the participation into public meetings and RIB received, the relocated households will be informed of the rights to appeal. Meanwhile, the complaints and grievance procedure will be publicized to the APs via media. The relevant departments will review the APs’ opinions and suggestions and the PRO at every level will treat the information in time and effectively. 239. Every organization will receive the APs’ complaint and appeal without charge and the related cost induced by this will be expended from the contingency.

Figure 8-1 Appeal and Grievance Procedure

Provincial, municipal, PRO district, county People’s Court

Provincial, municipal, district, county principle County LRMB/Forest MEA check and supervision bureau departments

Provincial, municipal, Township/Forest farm district, county grievance reception office

Village committee

Resettlers

Chapter 9 Monitoring and Assessment 240. In order to implement RP smoothly and realize the objective of good resettlement, regular M&E will be carried out in the whole implementation stage due to the requisition of ADB. The M&E can be divided into two parts: internal and external M&E. 241. The internal M&E activities will be conducted by provincial PMO and county LRMBs to ensure that the organizations involved observe the principle and timetable of RP to conduct LAR and resettlement. Its purpose is to keep the resettlement organizations good function during the implementation. 242. The external M&E activities mainly are carried out by the independent MEA to carry out regular independent M&E on the LAR and rehabilitation. The independent M&E is done by the MEA separate from the resettlement IA to evaluate the LAR and rehabilitation and check all of the implementation in comprehensive and long-term perspectives. The independent MEA will follow up the resettlement of the Project to evaluate whether the resettlement is done in consistent with the relevant state policies and laws of LAR; whether it is done in accordance with the ADB policies; and whether the APs’ living and productive standard is increased or at least kept in the original level of non-project period. The independent MEA will put forward suggestions on the issues found out in the monitoring to the relevant IA to keep the issues solved in time during the implementation of resettlement. 9.1 Internal M&E

9.1.1 Objective and Task 243. The objective of internal M&E is to conduct monitoring due to the supervision obligations stipulated in RP in the implementing process to ensure the project be conducted smoothly and the APs’ legal rights and benefits. The provincial auditing departments will also conduct independent supervision on the relevant departments of highway construction due to the laws and regulations in its prefecture. The superior organizations have the obligation of supervision on its subordinate organizations to ensure that the RP and procedure be carried out.

9.1.2 Organization and Staff 244. The internal M&E on the land acquisition and relocation will be conducted by the PRO of the Project and specifically by the 5 county PROs, townships and village PRO organizations along the highway. For effective internal M&E result, all of the PROs have been staffed with full-time professional personnel at every level. They are responsible for the specific compilation and implementation of the RP and conduct the internal M&E activities.

9.1.3 Monitoring Contents 245. The main contents of the internal M&E are listed as follows, (1) Allocate and use the compensation fund; (2) Prepare houses for relocation; (3) Select and arrange new housing plot; (4) Reconstruct houses for APs; (5) Assist vulnerable groups; (6) Arrange employment of the APs and assist them in living; (7) Readjust and allocate land; (8) Allocate and disburse compensation fund for land loss; (9) Relocate and rehabilitate, reconstruct shops and enterprises; (10) Restore and reconstruct facilities;

(11) Arrange time for the activities above; (12) Conduct the policies in RP; (13) Public participation and consultation during the implementation phase; (14) Receive grievance and sue, and treat, report the result; (15) Focus on the women and minorities; (16) Staff arrangement, training, working plan and the working efficiency of PRO.

9.1.4 Internal M&E Procedure 246. The PRO of the Project put forward the working framework for the M&E on LAR activities of the affected households and set up database for land acquisition, house resettlement and demolition with M&E on the whole resettlement process. 247. During the implementation phase, the county PROs will set up related database and update it along with the RP progress. Meanwhile, they will record the activities taking place for the moment and report the progress to the project PRO of the provincial High-graded Highway Administrative Bureau for the continuous M&E. 248. In the internal M&E system mentioned above, a series of tables have been formulated for the villagers report the actuality to the PRO of the Project in time. The county PROs and township LAR teams are very significant in the internal M&E system. The PRO of the Project will check and supervise LAR regularly and report the progress summary to ADB once half a year.

9.1.5 Reporting 249. After implementation of LAR activities, the subordinate PROs will report the progress once every three months; due to the reports of every PRO, the PRO of the project will report progress to ADB quarterly within first year and on every April 30th and October 31st since the beginning of the second year.. 250. PRO will also prepare land acquisition and resettlement completion report for submission to ADB when land acquisition and resettlement activities are successfully finished. 9.2 External M&E

9.2.1 Objective and Tasks 251. The external M&E activities will be taken by the external MEA which is independent of the IA and its tasks are to conduct M&E on land acquisition, demolition and whether the resettlement objectives be realized. In this way, the opinions and suggestions on LAR, house reconstruction and APs’ living standard will be put forward to supply forecasting and warning system for the project management and supply channel for APs to report their opinions. The terms of reference for the external resettlement monitoring and evaluation are included in Appendix 1. 252. The external MEA will report to the LG of the Project PRO independently and conduct follow-up survey on the RP, M&E on LAR activities to supply suggestions for formulation and decisions of reducing measures. The resettlement monitoring reports from the external monitoring agency will be submitted to EA and simultaneously to ADB. 253. For external M&E agency, the main tasks are baseline survey, regular monitoring (semiannual or annual) and annual evaluation after resettlement activities are completed.

9.2.2 Organization and Staff 254. The institute will provide advice to the Project PRO and conduct surveys on the APs’ living standard and incomes. The MEA will also submit annual reports to the Project PRO and ADB.

9.2.3 Main Indicators for M&E 255. Main indicators for monitoring: (1) Progress. Including preparation and implementation of land acquisition, house reconstruction and house demolition. (2) Quality. Including quality of civil work and APs’ satisfaction degree. (3) Investment. Including fund allocation and use.

256. Main indicators for evaluation: (1) Economic situation. Economic development including asset, productive materials, living materials and income and expenditure before and after LAR. (2) Environmental situation. The living standard including traffic, culture and education, sanitation and commercial facilities before and after LAR. (3) Employment. Change of employment including employment rate, TA for the different APs especially the vulnerable groups such as poor and minority families. (4) Community development. Economic and environmental development in the affected area, neighborhood and public participation after resettlement. (5) Conditions of vulnerable groups and minorities. The impacts on affected minorities, poor families, the disabled, the elder, kids and women before and after the LAR. .

9.2.4 M&E Measures 257. The M&E will be conducted based on the survey data supplied by DI and IA of the Project. For full understanding, the sample survey, questionnaire, and rapid rural appraisal (RRA) will be utilized for evaluation. To select out the typical data including the families relocated, affected villages and towns will be taken as indicator system of different types of APs. Based on the latest research of China and overseas on living quality, the survey result will be analyzed and evaluated with comparison. Apart from this, the vulnerable groups will be surveyed as a focus. 258. In general the external MEA will conduct the following activities: (1) Survey on the APs’ living standard 259. Baseline survey on the Project will be conducted including collecting that on the living standard of APs sampled (initial sample will be selected in random). The living standard will be investigated one a year to monitor the change of the AP’s living standard. The necessary data can be collected by means of regular survey, random interview and field survey and then the data will be analyzed and evaluated. The vulnerable groups will be surveyed at the same time. 260. The survey consists of the indicators of living standard, among which some indicators will be taken as the dynamic ones to evaluate the living standard before and after LAR. And the indicators selected out will be verified whether they are able to indicate the actual productive and living standard in the baseline survey reasonably and then due to the actuality they will be readjusted to ensure the data got can represent the real situations both in quality and quantity. 261. Sample scale: for the households/villages affected by LAR, 10% AHs and 20% villages in 5 counties affected by the land acquisition, and 50% households of affected by house resettlement, and each of the affected State Farms and Forest Farms will be surveyed. Meanwhile, a certain proportion of minorities, vulnerable groups will be taken into consideration, either while sampling households or by focus group discussions. (2) Public survey 262. The independent MEA will participate into the public consultations organized by the villages and towns. In this way, the MEA will evaluate the efficiency of the public participation and the AP’s reflection and attitude to the RP. These activities will be conducted

100 during the RP implementation and for two years after completion. (3) Collect APs’ opinion 263. The independent MEA will visit township governments, village committees and villagers for many times to collect the APs’ opinion and visit the APs who have grievance. The MEA will report the affected individuals and collective’s opinion and suggestions to the PRO, providing suggestions for working promotion and making the LAR activities more smooth and efficient. (4) Other obligations 264. The independent MEA will provide suggestions to the PRO and compile M&E reports and during the term of M&E it will function the following. - selection of resettlement sites; - construction of houses; - production arrangement and rehabilitation (utilization of fund); - assistance to the vulnerable groups; - resettlement of shops; - reconstruction of facilities and infrastructure; - disbursement of compensation fund; - resettlement of APs induced by LAR; - employment of labor force; - training for labor force; - schedule of the activities above; - supervision on the efficiency of the resettlement organizations; - compensation for the collective land use; - change of APs’ income, expense and asset actuality; - employment and increase of income for the over plus labor force.

9.2.5 M&E Procedure - prepare a work plan based on the TOR; - identify software of computer for M&E; - formulate out survey outline, questionnaire and record card for villages and families in sample; - complete baseline survey; - set up information system for M&E; - conduct survey for efficient monitoring on LAR, including community socio-economic survey, IA, village group-based survey, family-based survey, survey on other affected objects such as enterprises and etc; - classify M&E information and set up database; - analyze in comparison; - compile M&E report (half a year during implementation, annually thereafter for 2 years); - translate report into English; and - address any comments on reports from APs, local officials, PRO and ADB.

9.3 M&E Report

9.3.1 Internal M&E Report on Progress (1) Cycle 265. After the commencement of LAR activities, the subordinate LAR offices will report the progress of resettlement to the superior offices regularly; due to the reports of every PRO office, the PRO will submit the progress report to ADB quarterly/semi-annually.

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Table 9-1 Schedule for Internal M&E Progress Reporting Time Content Report

January 2010, year Land acquisition and resettlement Internal M&E report end July 2010, mid year Land acquisition and resettlement Internal M&E report

October 2010 Land acquisition and resettlement Internal M&E report

April 2011 Land acquisition and resettlement and Internal M&E report income restoration October 2011 Land acquisition and resettlement and Internal M&E report income restoration

(2) Format and Contents 266. The compilation of the progress report submitted by PRO will meet the requisitions of ADB. And generally the report will be made up of two parts. ——the literal part will describe the progress of resettlement, disbursement and use of compensation fund, problems and difficulties raised in the implementation and corresponding measures in detail; ——fill statistical data in the past 6 months into tables; by means of comparison between plan and actuality of land acquisition, house demolition, reconstruction and use of compensation fund to represent progress in detail. Table 9-2 is the land acquisition and resettlement progress report.

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Table 9-2 LAR and Resettlement Progress Report LAR and resettlement progress report Unit: ______Cut-off Data for Reporting contents: Month Date Year Filling-up date: Month Date Year Proportio Actual Qty in Accumul n of Item Unit completi plan ation completi on on Disbursement of

compensation fund Old house demolition Reconstruction of new

houses Permanent land

acquisition Temporary land use Relocation of

enterprises Readjustment of land Reporter: Signature (Principal): Cachet:

9.3.2 Resettlement Completion Report 267. After actual completion of the resettlement activities, PMO of Heilongjiang Provincial Communication Department will prepare for a resettlement completion report. The report will stipulate the details of the resettlement implementation including land acquisition, house demolition, movement of resettle people, living and income rehabilitation, budget, schedule and grievance and appeal. And then the report will be submitted to ADB before the final independent M&E report on resettlement.

9.3.3 Independent M&E Report 268. Within 1 month after the activities ended, the independent MEA will report the progress authorized. When submitting progress report to ADB, the PMO will attach the M&E reports annually got from the independent MEA. (1) Cycle 269. Schedule of external M&E is shown in Table 9-3. The frequency of monitoring for affected household should be implemented once per year after the completion of RP.

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Table 9-3 Schedule for External M&E by PMO Time Content Status Preliminary land acquisition and August 2009 resettlement progress up to August Submitted 2009

Land acquisition and resettlement

January 2010 progress up to December 2009

Land acquisition and resettlement

April 2010 progress for the first quarter

Land acquisition and resettlement

July 2010 progress for the second quarter

Land acquisition and resettlement

January 2011 progress up to December 2010

Resettlement and income

July 2011 restoration progress

Resettlement and income

January 2012 restoration progress

January 2013 Resettlement completion report

(2)Content - summary of baseline survey (attached at the back of the report); - progress of land acquisition and house demolition; - production construction and rehabilitation; - house demolition and reconstruction; - APs’ living standard survey; - disbursement and use of compensation fund; - evaluation on implementation and efficiency of IA; - assistance to women, vulnerable groups and minorities; - relocation and restoration of affected shops and enterprises; - problems and suggestions; - follow up the former problems and evaluate the solutions to the problems; - implementing summary in 3 to 5 pages.

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Chapter 10 Resettlement Implementation Schedule 10.1 Progress links of resettlement and project construction 270. The resettlement schedule has been linked up with that of the project construction schedule. The main resettlement activities will commence in October 2009 and will be completed by December 2011. The basic principles of processing arrangement are listed as followings: (1) The LAR scope of the Project will be determined finally based on the design map (redline) of the Project. (2) The land acquisition will be completed before the commencement of each section of construction; (3) The land readjustment, where required, will be completed in the spare time of farming and within 12 months of land acquisition; (4) The affected enterprises will be paid for business cessation loss, which will be done before the construction of the Project; (5) The settlement and disbursement of compensation fund will be paid fully after the two parts sign agreement and before dispossession of land or assets; (6) The restoration and reconstruction of every facility will be completed before the commencement of every section of construction or movement of APs. The impact on irrigation channel, drainage ditch, telecom wire and local roads will be mitigated to the least and the productive loss will be avoided; (7) The APs will be notified of house demolition at least 3 months in advance and at least 3 months after the notification and before the cut-off date for house demolition compensation will be given to them for reconstruction of new houses and they can salvage materials from the old houses before the completion of the new houses; (8) The construction time for the APs’ houses will be avoided in winter; no demolition in winter will be ensured. 10.2 Key Tasks of Permanent Land Acquisition and Temporary Land Occupation 271. For permanent land acquisition, the main tasks are below: (1) The specific map of LAR scope will be determined by Heilongjiang Highway Reconnaissance and Design Institute due to the scope of reconnaissance and design, to clarify the scope and quantity of LAR and quantity of house demolition; (2) PMO will apply for land use license to the planning department and land acquisition certificates to Heilongjiang Land and Resources Department; (3) Approval and issuance of land acquisition certificates; (4) PMO negotiates with the 8 county land bureaus on compensation for land acquisition, signs agreements of land acquisition and transacts land use procedures; (5) County land bureaus and every related town and village and APs determine the LAR scope and quantity on spot;

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(6) County land bureaus and every related towns and villages sign agreement on land acquisition; the village committee or farm informs the APs; (7) Disbursement of compensation fund to the village committee or farm; (8) Transact legal procedure; and (9) Project acquires land. (10) Village committee decides how to utilize the compensation funds based on meetings with APs and village representatives. 272. For temporary land occupation, the main tasks are below: (1) The Contractor must seek land use approval from the land bureau and pay a deposit fee for land restoration; (2) AHs are informed and the Contractor signs land occupation contract with AHs; (3) The temporary land users pay the compensation to the AHs. If there are standing crops, the compensation for standing crops will also be paid to the AHs directly; (4) The project can occupy the land according to the contracted time, which is normally no more than 2 years; and (5) Give back the land to the AHs and the project will restore its original use. 10.3 Key Tasks of Resettlement for Residents’ House Demolition (1) According project approval and land use approval, check the scope of construction land and freeze the building permits in the affected area. At same time, according to document of approval for the project construction and land using permission, notify AHs of the construction scope of the project. (2) According to registered resident and population and data of property right provided by housing management department, organize staff to investigate households and check them in the field, including amount of households and population, character of housing property right, housing structure, housing area and attachments on land, etc. (3) Sign written agreement of compensation with AHs and do enough mobilization activities. (4) The APs get the compensation and help from IA on house plot approval, construction material purchasing during transition period. (5) Moving into new house and the old one will be demolished.

10.4 Overall schedule of land requisition, removal and resettlement 273. According to project construction land requisition and resettlement preparation and implementation activity progress, the project overall schedule of land requisition, removal and resettlement is formulated. For details, please refer to Table 10-1.

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Table 10-1 Resettlement Implementation Schedule Item Scheduled progress I. Land Requisition 2009.10.1~2011.12 1. Issuance of Resettlement Information Handbook 2009.1 2. Publish compensation criteria 2009.1 3. Detailed investigation and measurement (cut-off date) 2009. 3~4 4. Negotiation and determination of compensation amount 2009.1~10 5. Land requisition compensation payment 2009.10-2010.5 II. Rehabilitation of production losses 1. Formulate land adjustment measure and detailed plan, make 2009. 1-3 negotiation with affected people. 2. Land reclamation plan 2009.5 3. Land adjustment implemented 2009.5-2010.5 4. Other economic rehabilitation measures implemented 2009.5-2011.5 III. House removal and relocation 1. Investigation of affected assets and valuation 2009.3 2. Publish investigation results in announcement board and inform 2009.3 affected people 3. After negotiation with household, conclude a compensation 2009.3-10 agreement of house relocation 4. Select homestead land 2009.5 5. House compensation payment 2009.10 6. Level homestead land 2010.5 7. Build new houses 2010.5-10 8. Move into new houses 2010.7-10 9. Remove old houses 2010.7-10 IV. Special facilities rehabilitation 2010.5-10 V. Monitoring and Supervision 1. Internal monitoring and supervision and quarterly reporting 2009.12 2. External monitoring and evaluation (M&E) and reporting - Base Survey and Report 2009.10-12 - First semi-annual M&E Report 2010.04-05 VI. Commencement of Civil Works 2010.05

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Appendix 1 Terms of Reference for Independent External Monitoring 1. Introduction 1. Due to ADB’s requisition, the loaned Project involving resettlement will be conducted with M&E. To ensure the implementation of Heilongjiang Qianfeng farm to Nenjiang Highway Project be in consistence with the stipulations of RP, PMO entrusted HSSA as the external MEA to conduct external independent M&E activities during and after the project implementation. 2. Objectives and Requirements of Monitoring and Evaluation 2. The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. After independent M&E, ADB and project supervising departments can learn fully whether the LAR activities conducted in time and realize the expected objective in quality, put forward the problems and suggestions to mend the activities. The specific content of the M&E is listed as follows: I. M&E on LAR Schedule Includes:1) LAR schedule and compensation; 2) Forest land Acquisition schedule and compensation. II. M&E on schedule of residential house demolition and resettlement Includes:1) house demolition schedule and compensation; 2) movement and resettlement schedule. III. M&E on enterprise and institution demolition and resettlement schedule Includes: 1) enterprise and institution demolition schedule and compensation; 2) reconstruction schedule; 3) movement and resettlement schedule. IV. M&E on fund fulfillment and utilization Includes:1) fund fulfillment; 2) fund utilization (plan and actuality). V. APs’ Income, Living and Production Rehabilitation Includes: follow-up M&E on social economy before and after LAR in the affected area, every year to conduct a follow-up survey on the income, living and production standard of the sample households, to evaluate the rehabilitation after resettlement until the income is rehabilitated.

3. Monitoring Indicators 3. The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP: i. To protect the APs and affected enterprises’ rights of compensation, housing, farmland and employment specifically listed in the RP; ii. To develop economic production: reallocation of farmland, land recovery, supplies employment opportunity to the APs. iii. To supply houses for selection: APs must move into the houses before land acquisition; they much obtain the transmission subsidy in time. iv. To rehabilitate pubic infrastructure: the infrastructure will be rehabilitated in the resettlement site, at least to the original standard.

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v. APs’ satisfaction degree: APs’ satisfaction degree with the aspects of RP, appeal procedure and timely solution of the problem. vi. Standard of living: Throughout the implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socio-economic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation. vii. Participation of affected persons: Involvement of APs in measurements of impacts, negotiation of compensation, decisions for collective investment of land compensation, and monitoring of progress. viii. Support for vulnerable households: impacts on children, the elderly and other vulnerable groups and implementation of preferential policies, income restoration measures, and improvements in women’s status. ix. Adequacy of resettlement funds: full and timely disbursement of resettlement budget, results of financial audits and increased in funding meet any shortfalls. 4. M&E Methods 4. The M&E on the APs economic income, living and production standard will take quantitative and qualitative methods and the survey includes to visit the IA of the Project, local government officials, village leaders and 10% of all kinds of affected households (impact of permanent land acquisition, house demolition and enterprises) and as well, the focused group discussion can be carried out. 5. Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include: The status and function of women: Closely monitor any change in women’s status, function and situations. At least 50% of APs surveyed will be women. 6. Care and attention to vulnerable groups: Closely monitor living conditions of elders, the handicapped, and other vulnerable groups after resettlement, to ensure that no hardship is experienced. 5. Contents and Distribution of Independent Monitoring Reports 7. A monitoring report will include, among other things: Summary of findings and conclusion of investigations and evaluation; Major problems identified (existing and potential); Recommended mitigation or prevention measures which need to be taken; Assessment of previous follow-up actions. 8. The Monitor will provide ABD and the Heilongjiang Project Management Office (HPMO) with monitoring reports every six months during the implementation of the RPs. After the PMOs prepare their resettlement completion reports, the Monitor will conduct annual evaluations for two years, or until all issues have been successfully resolved. 9. All reports will be provided in English and Chinese. PMOs shall ensure that information on the progress and status on all aspects of land acquisition and resettlement activities will be provided to the external monitor for verification. The Monitor will forward copies of the reports directly to ADB.

6. Duration and Frequency of Visits The consulting services will be required during a period of 3 years (2009 to 2011).

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10. The external monitoring will be conducted half a year during implementation, each time it should last one month. The survey can be conducted due to the schedule of every section. 11. The M&E schedule and reporting is arranged as follows.

Table 1-1 External Independent M&E Schedule and Report

Time Content Status Preliminary land acquisition and August 2009 resettlement progress up to August Submitted 2009

Land acquisition and resettlement

January 2010 progress up to December 2009

Land acquisition and resettlement

April 2010 progress for the first quarter

Land acquisition and resettlement

July 2010 progress for the second quarter

Land acquisition and resettlement

January 2011 progress up to December 2010

Resettlement and income

July 2011 restoration progress

Resettlement and income

January 2012 restoration progress

January 2013 Resettlement completion report

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Appendix 2 Resettlement Information Handbook

I. Project Introduction 1. The highway Qianfeng Farm – Nenjiang passes through the province from west to east, traverses the Sanjiang Plain and the hinterland of Xiaoxinganning, and connects with Nenjiang Plain. The distance of the highway accounts to 824km. In the northern center area, the route will pass across five regions including Jiamusi, Hegang, Yichun, Suihua and Heihe, connect with Daxinganling area, and later link to such 8 framework highways as Longitudinal 1, Longitudinal 2, Radiant 4, Radiant 3, Radiant 2, Longitudial 6 and Horizontal 1. In addition, it will link 6 branches (Suibin – Jiamusi, Jinshantun – Tieli, Suihua – Bei’an, Wudalianchi – Nahe, Nenjiang – Heihe, and Nenjiang – Laodaodian). It becomes an important passageway from west to east in northern area of Heilongjiang Province. 2. The project actual mileage and highway section

Total Expressway Length = 278.34 km Total Construction Expressway Length =206.23 km Total Project Length = 426.71 km Total Project Construction Length =354.60 km Total Branch Road Length =5.10 km

Note 1). The proposed roadway shares with Ji‐Hei Expressway from Zhaoguang Interchange to Zhanhe Interchange, and uses the existing Class II road from Zhanhe Interchange to Longzhen to start the new Class II segment. 2). The expressway starts the shared section with Ji‐Hei Expressway from Zhaoguang Interchange to Jianhua Interchange, and continues to Huanxingling Toll Plaza at Wudalianchi GeoPark. The section includes 11.93 km Class I road as a transition to the existing Class II road at the Wudalianchi GeoPark. 3). The segment ends at the end of Nenjiang Bridge in Inner Mongolia. The segment is built as Class I road with intention to upgrade to expressway in future.

II. Project impact 1. Definition of the Project Impact (1) Permanent land acquisition: all varieties of farmland and non-farmland including irrigated land, dry land, vegetable land, fishing pond, forest land, wasteland and other

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land within the redline of land acquisition for the highway. (2) Building demolition: buildings including brick house, thatched cottage, brick and timber house, simple house and workshops within the redline of the highway form Qianfen Farm to Nenjiang. (3) Ground attachment: ground attachment including trees, fruit trees, young trees; all varieties of green seedlings on the farmland within the redline of the highway from Qianfen Farm to Nenjiang. (4) Electric power, telecommunication and water conservancy facilities demolition: the electric power, telecommunication and water conservancy facilities including electric wire, telecommunications wire within municipal or county, metal wire of hanging cable, photowire of hanging cable, metal wire of covered cable and photowire of covered cable within the redline of the highway from Qianfen Farm to Nenjiang. (5) Affected household: refers to all of the households having got all or part physical or immaterial property damage induced by the implementation of the Project. In the Project, it refers to all the households who have land, buildings or ground attachment within the redline of the highway and those who have lost all or part of livelihood because of the implementation of the Project. (6) Affected collective: the collectives who have land, buildings, or ground attachment located within the redline. (7) Affected enterprises and institutions: those enterprises and institutions who have land, buildings, or ground attachment within the redline. (8) Population Structure of AP: population structure of affected household. (9) Project impact type: the land locating within the redline belongs to the impact of permanent land acquisition; building or ground attachment locating within the redline belongs to the impact of demolition. The scope of the LAR in the RP includes all the LAR along the main road and service centers and that for temporary land use.

3. The project will affect 4 counties (cities) and 1 municipality. The affected population will reach 2.487 million, and the affected area will be 56,053 km2. The regions directly affected by the project involve towns with jurisdiction of 4 counties and 1 municipality, 3 forest bureaus of Heilongjiang Forest Industry Bureau, 6 farms of Province Agricultural Reclamation Bureau, 3 prison farms of Provincial Judicial Department and 1 logistics base of Provincial Military Command. It will directly affect 650,000 people. (1) Impact analysis on occupied cultivated land 4. The highway will occupy 7547.5 mu of cultivated land, accounting for 37.6% of the total requisite land. Among which, there are 3168.4 mu of occupied land in towns and villages, accounting for 40.9% of requisite cultivated land. There are 4379.1 mu of occupied land in agricultural farms and forest farms, accounting for 59.1% of requisite cultivated land. The per capita owned cultivated land where the highway passes is relatively greater. The requisition scale of each household is less. The impact degree will be lower. However, the impact scope will be wider. The greater deals of cultivated land exist in agricultural and forest farms where the highway passes. Considering that the land area of agricultural farm is greater, the per capita cultivated land area is several times of that of provincial per capita cultivated land, the agricultural farm belongs to state-owned system, the land contracted by farm employees is adjusted in short period, even adjusted every 1 year, there is waste land is available for reclamation, therefore, the occupied land will bring about less impacts on the affected farms. The forest farms, where the highway passes, mainly engage in operation of forest industry. The income from planting industry is not dominated. The land requisition will bring about certain of impacts to staff and workers of forest farms. However, it will be less.

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(2) Analysis on impact of removal and relocation 5. The houses which will be removed totally reach 1936.6 m2 in area and 242.8 m2 warehouse. In overall, the size of house removal and resettlement is small. There are 10 farmer households, 2 units and 1 enterprise which will be affected by the project. The houses to be removed and resettled are distributed at both sides of the highway. In the affected villages, it is easier to find homestead lands suitable for new houses in original villages. The newly built houses will be relocated along the highway or in the original villages as applicable as possible. The highway does not bring about removal and resettlement of urban residents’ houses. (3) Analysis on impact to enterprise 6. The highway will affect 1 enterprise, mainly involving removal and resettlement of houses. The said enterprise has suspended operation. Importantly, the operational income due to removal and resettlement of houses has not decreased. (4) Analysis on forest land requisition 7. The land requisition of forest land will totally reach 9,534.3 mu, accounting for 47.1% of the acquired land. Of which, forest land of Forestry Bureau and Farm accounts to 9447.8, accounting 99.1% of total forest land occupied. The affected forest bureaus are under leadership of provincial forest industry administration bureau. They are state-owned. However, forest bureaus have not been empowered to cut forest trees for sales due to implementation of state forest protective policy. The state will allocate maintenance fund to forest bureaus for purpose of forest maintenance according to actual forest area maintained by them. The main income comes from diversified economy, non-forestry economy and breeding industry. As a result, the requisition of forest land will not bring about significant impacts to staff and workers of forest farms. Because of vast areas in forest farms, small quantity of cultivated land requisition may be easily compensated through corresponding allocation measure. Contrarily, the highway construction can greatly promote forest farm’s economic development. At present, it is understood that large number of forest products did not be sold because of inconvenient transportation. In addition, the forest tourism resources cannot be also developed. III. Resettlement and Rehabilitation Plan 1. Resettlement Principle

（1） The resettlement plan content of land acquisition and house demolition covers resettlement and restoration of APs on the main road and 4 branch roads;

（2） The local economic and social development, resource utilization, economic growth and environmental protection must be considered for making resettlement of land acquisition and house demolition. Considering local specific circumstance, make a feasible plan, to restore or improve their economic production, and create the basic condition for the long-term development;

（3） The base of resettlement plan for land acquisition and house demolition is to “be beneficial to production, convenient for life”.

（4） The standard and scales of restoration are to restore the original scale and levels in principle, at the same time, still pay attention to thinking continual development locally, to satisfy certainly the need in future.

（5） The relationship between nation, collective and individuals is considered, also other relationship considered.

（6） Make use of the local resources well, such as constructing water conservancy establishment, new cultivated farmland, paddy field changed from the drought land etc. strengthening the agriculture development strengths, making displaced persons’ living level attain or exceed the original level gradually;

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（7） Include clauses to improve life levels of affected persons, such as, women, national minority, poor population and other vulnerable groups.

2. Overall plan of land requisition, removal and resettlement

（1） All villagers who were affected by this project were resettled in the original community to keep the original production and life styles, keep the customs, habits and the social relations, avoid bringing affected persons unfamiliar feeling because moving into the new resettled area;

（2） For lowering the production and life effect to displaced families, houses of villagers will be demolished and rebuilt by themselves, and the building materials of the old house will be used freely according to their will;

（3） For the production, parts of village groups will readjust the empty remaining land and give these lands to families lost land. For the villages without remaining land, who are mainly helped to change drought farmland into paddy field, adjust agriculture industrial structure to improve the land utilization, and provide them allowance for training them to develop non- agriculture industry etc. so as to assurance and restore displaced persons living level;

（4） The urban residents can purchase the house in market freely after gaining compensation at the reconstruction price;

（5） The affected enterprises recover the production as soon as possible after getting the subsidy for moving equipments and loss from cessation of production.

IV、Policy Base and Compensation Criterion 1. Policy Referred by the Project 8. The policies and regulations referred by the Project are mostly listed as follows:

（1） Land Administration Law of People’s Republic of China, 2004

（2） Forestry Law of People’s Republic of China, 1998

（3） Land Administration Regulations of Heilongjiang Province, 2000

（4） The inform of adjust the compensation fee of forestry land acquisition, 2007, Forestry Department, Price Bureau and Financial Department of Heilongjiang Province.

（5） The temporary regulations of forestry recover fee, 2002, Ministry of Finance and State Forestry Bureau.

（6） Farmland cultivation fee collection and use regulations of Heilongjiang Province, 2001

（7） The basic farmland protection regulations of Heilongjiang Province, 1995

（8） The notice of print and distribution the regulation of ‘ The standards of Farmland re-cultivation fee collection of Heilongjiang Province’, 1991

（9） The notice of print and distribution the regulation of ‘ Land management fee collection regulations of Heilongjiang Province’, 1995, Land Administration Bureau, Price Bureau, Finance Department of Heilongjiang Province.

（10） Implementation Regulations of Farmland Acquisition Tax, 2008

（11） Implementation Regulations of Integrated Price for Land Acquisition Based on the Region and Location of Heilongjiang Province, 2009

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（12） Temporary Insurance Regulations for Retired Farmers Whose farmland be acquired of Heilongjiang Province, 2008

（13） ADB’s Involuntary Resettlement Policy, 1995

2 Compensation rates (1). Compensation criteria for permanently occupied land A. Farming land compensation rates

Appendix table 2-1 Compensation Rates for Permanently Land Acquisition (CNY/㎡)

Location Farms and Town or townships Compensation Rates Changfu township 19.46 Haijiang township 20.98 Nenjiang town 20.94 Nenjiang Sishilihe forestry farm - Nenjiang farm 16.08 Qixingpao farm 16.08 Shuangquan town 21.54 Xinfa township 38.69 Xinlong township 19.82 Yinlonghe farm 16.08 Geqiushan farm 16.08 Wudalianchi Weishan farm 16.08 Huayuan farm 20.64 Yongfeng farm 21.54 Fenghuangshan farm 20.64 Military farm of Wudalianchi 38.69 Erjing town 15.8 Zhaoguang town 16.3 Bei’an Chengjiao township 15.8 Hongxing farm 16.3 Tongbei forestry bureau - Suiling Suiling forestry bureau - Yichun Cuiluan forestry bureau - Note: The land price of Nenjiang Farm, Qixingpao Farm, Geqiushan Farm, Yinlonghe Farm, Weishan Farm refered comprehensive price of Chaoyang Township in Wudalianchi City because their latitude are same with Chaoyang’s and locations are near. Compensation for young crops: 6% of land area integrated price. B. Forest land compensation rates 9. The compensation for forest land composes of forest vegetation rehabilitation fee, forest land compensation fee, forest trees compensation fee and resettlement subsidy fee.

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Appendix Table 2-2 Compensation Rates for Forestry Land

Item Type Rates

Scattering wood and （CNY/㎡） 2 shrubbery land Nursery wood 5

Land is not mature 2

Land no wood 1

Below 5 (exclude 5) 20

5—10(exclude10) 30

Man-made wood 10—15(exclude 15) 40 scale (diameter ,cm) 15—20(exclude 20) 50 Compensation for woods 20—30(exclude 30) 60 (CNY／unit) Above 30 70 More 20% than man-made Nature wood wood Nursery wood CNY/㎡ 30 Economically profitable 3-5 times the direct economy value and wood resettlement cost Resettlement subsidy （CNY/ 2.25 ㎡） Timber wood, economically profitable wood, firewood, 6 nursery wood Wood isn’t matured 4 Compensation Protecting wood and special usage wood 8 rates for forest State key fencing wood and state special usage wood 10 replanting fee （CNY/㎡） Scattering wood and shrubbery land 3 Woods suitable for forestry, deforesting and fire 2 2 times the Forest land in Urban and urban planning area standard above

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(2) Compensation criteria for project temporarily requisite land A. Farming land compensation criteria Appendix Table 2-3 Compensation standards for temporary farmland use Use time Compensation policy Criterion Integrated price of 1 year 10% of the integrated price the region Integrated price of 2 year 20% of the integrated price the region

B. Forest land compensation criteria 10. The compensation for temporary forest land includes forest land compensation fee, forest tree compensation fee and pre-paid forest vegetation rehabilitation fee. (3) House removal compensation criteria 11. According to site survey and researches together with construction bureaus, the house compensation criteria were established. Considering that house removal and resettlement is mainly centralized in rural area, agriculture farms and forest farms other than urban area, the house compensation criteria did not take account of urban assessment pricing approaches. Schedule 2-4 shows the details of house removal compensation criteria, and Schedule 4-6 shows the corresponding structure. Appendix Table 2-4 Compensation standards for house demolish (Yuan/ m2) Structure Unit Compensation Standards Brick house (Grade 1) m2 550 Brick house (Grade 2) m2 510 Brick house (Grade 3) m2 470 2 Adobe house with tile m 440 2 Adobe house with grass m 400 2 Temporary house m 360

Appendix table 2-5 House Structures Wall Structure Land Foundation Foundatio House Cover n Stone material and Wood framework, red tile and Brick house (class 1) Brick concrete iron sheet Stone material and Wood framework, red tile and Brick house (class 2) Red brick sand iron sheet Wood framework, cement Brick house (class 3) Red brick and sand Red brick tile, asbestos tile and tar paper Semi-earth Wood framework, asbestos Soil and tile house Red brick and sand and tile and tar paper semi-brick Earth house (grass house) Null Soil Grass Plate or Simplified house Null Asbestos tile and tar paper brick

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(4) Removal and relocation compensation criteria 12. In order to help affected population relocate and rehabilitate living standard, the project will pay relocation households for transportation fee, subsidy fee of idle time, homestead land leveling fee and three-supply fee. For details, please refer to appendix table 2-7.

Appendix Table 2-6 Subsidies for APs’ Movement Compensation Description Unit Criterion

Transporting cost for movement Yuan/household 200

Subsidy for work-delay Yuan/household 100

Flat cost for housing plot Yuan/household 200

(5) Compensation for infrastructures and attachments 13. For other infrastructures and attachments affected by the project, please refer to appendix table 2-7. Appendix Table 2-7 Compensation Rate for Infrastructure and Attachment

Item Facility Unit Criterion（CNY）

Concrete electric pole Pole 3000

Timber electric pole Pole 1000

Public photo-cable m 100 facilities cable m 100

high voltage tower Set 40000

CATV wire Pole 3000

Graves Grave 100

Fence m 100

Fencing wall（Brick） m 150

Well Well 10000 Attachm Sign brand unit 2000 ent 2 Underground bee vault m 1000 2 Corral m 500

Toilet Set 300

Iron gate set 200

V. Resettlement Institution 14. The Heilongjiang Province Qianfeng Farm – Nenjiang Highway Project Office will be responsible for overall planning of the project land requisition and relocation, and also for the

118 project resettlement management. Annexed schedule 5-1 shows the resettlement origination framework of Qian-Nen highway project. 15. The detailed implementation of resettlement shall be carried out by government execution agency including land resource administration bureaus and town-level governments in 5 counties (cities). 16. The government institutions participating in the project land requisition and resettlement are as follows: 17. At province level: Heilongjiang Province Qian-Nen Highway Project Office; 18. At City/County level: Land Resources Administration Bureaus in Yichun City, Suiling County, Bei’an City, Wudalianchi City and Nenjiang County; 3 forest bureaus under Forest Industry Administration Bureau and 6 farms under Agricultural Reclamation Administration Bureau. 19. At town level: town-level government, forest farm and agricultural farm. 20. External independent monitoring and assessment institution.

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Project Office

Project Resettlement Office

City/County Land Sources Administration Bureau

Forest Bureau, External Agricultural Independent Reclamation Bureau Monitoring Town level government & Assessment Agricultural and forest Institution farm

Villager committee Staff and workers of agricultural and forest farm

Property owner of Relocation Property owner of enterprise or shop household other assets

Appendix schedule: Resettlement organization framework of Qian-Nen Highway Project

VI. Grievances Redress and Appeal 21. During the process of RP compilation and implementation, the public participation is to be encouraged. However in the whole process there are still some problems unexpected. To solve the problems effectively and ensure the successful implementation of the construction and land acquisition, a transparent and effective letter grievance and appeal channel has been set up and the basis treatment procedure includes the following steps: I. Step 1 If the relocated households have any rights been intruded at any aspect of the LAR, they can put forward their complaints and appeal to the village committee at oral or written forms. If just oral complaints, the latter will record down and give a treatment and they will give solution or decision within 2 weeks. II. Step 2 If the appealers are still dissatisfied with the decision of Step 1, they can appeal to township government/forest farm after they got the decision and the township government/forest farm will give out decision within 2 weeks. III. Step 3 If the APs are still dissatisfied with the feedback of Step 2, they can appeal to the county LRMB/forest bureau after they got the feedback. IV. Step 4

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If the APs are still dissatisfied with the decision of the county LRMB, they can appeal to the PRO directly. V. Step 5 If the APs are still dissatisfied with the feedback of the Project PRO, after they receive the feedback they can sue to the People’s Court due to the civil laws procedure. 22. The specific appeal procedure can be seen in Chart.

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Provincial, municipal, PRO district, county People’s Court

Provincial, municipal, district, county principle County LRMB/Forest bureau MEA check and supervision departments

Provincial, municipal, Townships/Forest farm district, county grievance reception office

Village committee

APs by relocation

VII. Resettlement fund allocation 23. For resettlement fund allocation and target, please refer to Table 2-8 as follows:

Appendix Table 2-8 Basic Expenditure Allocation Targets Expenditure list Target

Land compensation fee 70% Farmer household

Land compensation fee 30% Villager Committee

Compensation for young crops Contractor

Cultivated land reclamation fee Land Administration Bureau

Land management fee Land Administration Bureau

Tax on cultivated land occupation The State

House removal and relocation compensation fee Property owner (urban and rural residents)

House removal and relocation compensation fee Property owner of enterprise and (enterprise and institutional unit) institutional unit Professional infrastructure removal and relocation Property owner fee 4 forest land subsidy fees Affiliated forest bureau

24. The fund allocation procedure for land requisition and removal is as follows: The land requisition, removal and resettlement fund will be paid by a bank appointed by the Employer to county-level land resources administration bureau. The county-level land resources

122 administration bureau will pay compensation fee to affected villager committees and related property owners. After that, villager committees will pay the same to land contractors. 1. Allocation principle 25. The cost relating to land requisition and removal will be completely listed into the project overall budget. The compensation fee of land requisition and removal as well as the others will be paid by land resources administration bureau to relevant units and individuals; 26. The land requisition fee will be paid to administrative villages by a bank through land resources administration bureau. In principle, it shall be used for production rehabilitation of affected village groups; 27. The land compensation fee will be paid 3 months before land requisition; 28. In order to ensure successful implementation of land requisition, removal and resettlement, the project office must different-level financial and monitoring institutions to ensure timely allocation and availability of related fund. 2. Institution responsible for resettlement finance (1) The institution responsible for compensation fund of rural land requisition include the Employer, Land Resources Administration Bureau, special financial sectors at town and villager committee level. (2) The resettlement fund will be allocated step by step from the top to the root. For purpose of guarantee of timely allocation and availability, the institutions at all levels shall strictly follow financial settlement and auditing system, regularly check and report the fund availability and usage, and draft amendment and rectification measures on unexpected situations. (3)The resettlement fund shall be used for special purpose. Any retaining or embezzlement is prohibited.

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Appendix 3 Relevant Laws and Regulations

1. Land Administrative Law of PRC, 2004

1. Article 10 land collectively owned by peasants will be organized legally by the collective economic committee; peasant collective-owned land respectively owned by more than two villages will be managed by the rural collective institutes of village or farmer teams; collective land subordinated to village (town) farmers will be managed and administrated by village (town) collective economic forms.

2. Article 14 Land owned by farmer collectives shall be operated under a contract by members of the economic organizations of the farmer collectives for crop cultivation, forestry, animal husbandry or fishery. Within the duration of the contract for operation of land, any appropriate readjustment of the land between individual contractors shall be made with the agreement of at least two-thirds of the members of the villagers assembly or of the representatives of villagers and submitted to the township (town) people's government and the agriculture administration department of the people's government of the county for approval.

3. Article 24 People’s government of all levels should strengthen land use plan and management and implement gross control for construction land.

4. Article 31 National protective arable land is forbidden to be changed into non-arable land. Land occupancy compensation policy is implemented by nation. In case land is approved for non-agricultural construction, the principle of “ cultivating according to occupation” must be observed; non-observance cultivation or cultivated land not conforming to the requirements, land cultivation fees shall be paid as per the regulations as specified by province, autonomous or municipal level.

5. Article 42 Land damage caused by digging, sinking and occupying shall be restored in charged by relevant regulations of the nation; non-restoration or non-observance shall be subjected to land recovery expenses.

6. Article 47 Land acquired shall be compensated for on the basis of its original purpose of use. Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and standing crop crops on the acquired land. Compensation for acquisition of cultivated land shall be six to ten times the average annual output value (AAOV) of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person of the unit the land of which is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four to six times the AAOV of the

124 acquired cultivated land for three years preceding such acquisition. However, the highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition.

7. Standards of land compensation and resettlement subsidies for acquisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for acquisition of cultivated land. Standards for compensation for attachments and standing crop crops on the acquired land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government. For acquisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State. If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the farmers needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition.

8. Article 48 After deciding on the policy of land acquisition compensation, announcement shall be issued by relevant local government and opinions of the collective farmers and local organizations shall be listened.

9. Article 49 The rural collective economic organization, the land of which is acquired, shall accept supervision by making known to its members the income and expenses of the compensation received for land acquisition. The compensation and other charges paid to the unit for its land acquired is forbidden to be embezzled or misappropriated.

10. Article 50 Local people's governments at all levels shall support the rural collective economic organizations, the land of which is acquired, and the farmers in their efforts to engage in development or business operation or to start enterprises.

11. Article 54 Nation-owned land used by the construction unit shall be obtained by such compensable attitude as selling; however, the following types of construction land as approved by the people’s government above county level can be obtained by appropriation”:

(I) National governmental organization land use (II) Urban infrastructure land and public welfare land (III) Infrastructure construction land primarily supported by the nation related to energy, transportation and water conservancy works, and (IV) Land of other purposes as specified by law or administrative regulations

12. Article 57 Where land owned by the State or by farmer collectives needs to be used temporarily for construction of projects or for geologic prospecting, the matter should be subject to approval by the land administration departments of people's governments at or

125 above the county level. However, if the land to be temporarily used is located in the area covered by urban planning, the matter shall be subject to agreement by the urban planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has the land-use right, enter into a contract for the temporary use of the land with the land administration department concerned, or the rural collective economic organization, or the villagers committee and pay compensation for it in accordance with the provisions of the contract. The land users temporarily make use of land in accordance with the provisions of the contract and can not build permanent construction. Generally the time of land use temporarily is not beyond 2 years.

13. Article 58 In case that the following conditions are met, and subject to approval of the people’s government or government with approval right, national land use right may be retrieved: (I) land use for public interest; (II)when land needs to be regulated arising from old city reconstruction for implementation of urban planning.

14. Article 62 Rural peasants can only own one residence for each household, with the area not exceeding the standard for province, autonomous region and municipalities. Rural residences shall meet the overall planning of town land utilization and maintain the original residing base and village spare area. Rural residing land shall be inspected by town people’s government and approved by country-level government; in which, where farmer-used land is occupied; procedures shall be addressed according to Article XXXXIV of this law. It is not approval that rural peasants who have sold or leased their houses apply for the residence again.

2. Forest Law of the People's Republic of China,1998

15. Article 18 Prospecting, mining and various construction projects shall not occupy or occupy as little as possible forest lands; in case of necessary occupancy or expropriation of forest lands, upon examination and approval of the competent forestry authorities under the people's government above the county level, the examination and approval formalities for land needed for construction shall be gone through in line with relevant land administration laws and administrative regulations; and the land-use organization shall pay forest vegetation recovery expenses in line with the relevant provisions of the State Council. The forest vegetation recovery payments shall be used for designated purposes; the competent forestry authorities shall use them, according to relevant stipulations, for forestation, recovery of forest vegetation; the area of forestation shall not be smaller than the area of forest vegetation reduced as a result of forest lands occupied or expropriated. The competent forestry authorities at a higher level shall periodically urge and inspect the competent forestry authorities at a lower level in the organization of forestation and recovery of forest vegetation.

16. No organization and private individual shall divert the forest vegetation recovery payments. The competent auditing authorities of the people's government above the county level shall strengthen their supervision of the situation in connection with the use of the forest vegetation recovery payments.

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3. Land Administrative Regulations of Heilongjiang Province, 2000

17. Article 16 The enterprises and individuals who work in non-agricultural construction and have got license of farmland acquisition should be responsible for reclaiming the farmland in the same quantity and quality of the farmland acquired on the wasteland suitable for agricultural production determined due to the overall planning. Where farmland in the local municipality (county in its prefecture excluded) and counties is reclaimed by the land users themselves, they should sign supplementary farmland agreement with the municipal and county people’s governments to clarify the term and requisition for reclamation. Where that is reclaimed cross municipality and county, the land users should sign supplementary farmland agreement with the supervising department of provincial people’s government. Where the land users have difficulty in farmland reclamation by themselves, they should hand in the farmland reclamation cost of CNY5, 000 to 30,000/ha to the supervising department of the county people’s government especially for the new farmland reclamation. The specific rate, use and management method for the farmland reclamation should be determined by the land supervising department of the provincial people’s government.

18. Article 26 For the land acquisition, the land compensation cost, resettlement subsidy, compensation for standing crops, ground buildings, and attachment should be disbursed to the enterprises whose land is acquired. The property owners and access owners whose land is acquired should go to the land supervising department of the local people’s government to register for LAR with the land property license.

19. The land compensation cost should be disbursed to the land property owners and the rural collective economic organizations should set up special account for special deposit as living subsidy for the rural households whose land is acquired and its own infrastructure construction to develop village enterprises. Where the land compensation is used, it must be agreed by more than 2/3 villagers or participants of villager meeting, submit for township people’s government for approval.

20. Where the laborers to be resettled by the collective economic organizations, the resettlement subsidy should be disbursed to the enterprises who have the property of collective land; where laborers to be resettled by other enterprises, the resettlement subsidy should be disbursed to the resettlement enterprises; where no need to resettle laborers, after collecting the opinions of laborers to be resettled and signing agreement of no resettlement with the collective economic organizations, the resettlement subsidy should be disbursed to the laborers to be resettled or used for insurance cost for them.

21. The compensation for standing crops, ground buildings and attachments should be disbursed to the operator of land contract and the proprietors of ground buildings and attachment.

22. No organization or individual is allowed to break into or embezzle the land compensation fund, resettlement subsidy and other relevant costs induced by the land acquisition.

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23. Article 27 For the land acquisition, the compensation fund should be disbursed due to the following rates.

i.The compensation cost for farmland acquisition should be 6 to 10 times of the AAOV in the past 3 years before land acquisition, where the AAOV in the past 3 years is not easy to calculate, it can be determined by the municipal and county people’s government due to the local actuality to study out the specific compensation standard of AAOV for dry land, irrigated land and vegetable land, and then submit to the land supervising department of provincial people’s government for approval before announcement for implementation by the municipal and county people’s government;

ii. Where the construction land including housing plot and village enterprises is acquired, the compensation cost is 4 times of the dry land’s AAOV in the past 3 years;

iii. Where the farmland newly reclaimed for 3 years below is reclaimed, the compensation should be 2 times of the output value in the past year for development investment;

iv. Where unused land and the farmland deserted for more than 4 years and 10 years below are reclaimed, the compensation cost is 2 times of the dry land’s AAOV in the past 3 years;

v. Where fishing pond is acquired, the compensation fund is 3 times of the AAOV in the past 3 years before land acquisition;

vi. Where garden plot, grassland and seed land are acquired, the compensation is 6 times of the AAOV of the type;

vii. The compensation rate for forest land acquisition is conducted in consistence with relevant state regulations.

24. Article 28 the resettlement subsidy for land acquisition should be disbursed due to the following standards,

i.Where farmland is acquired, the resettlement subsidy is 4 to 6 times of its AAOV in the past 3 years before land acquisition, and its calculation of AAOV should be conducted due to the first stipulation of Item 1 of Article 27;

ii. Where garden plot, fishing pond is acquired, the resettlement subsidy should be 3 times of its AAOV in the past 3 years before acquisition;

iii. Where construction land for housing plot, village enterprises, waste hill, waste land, grassland, seed land, unused land, farmland deserted for more than 4 years and below 10 years and that is newly reclaimed below 3 years, no resettlement subsidy should be disbursed;

iv. Where forest land is acquired, the resettlement subsidy should be conducted due to the relevant state regulations.

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25. Article 29 Where there are standing crops on the land acquired, the compensation for them should be disbursed with the standard of output value of that season that year. Where there are buildings, constructions and other attachments on the ground acquired, the compensation should be conducted due to the relevant state and provincial regulations or with the standard determined after the two parts’ negotiation; if no regulation or existing standard, the municipal, county government should determine it due to the actual value of loss. Before land acquisition and after the land supervising department of municipal and county government announces the forecast of land acquisition to the institutions or individuals whose land is to be acquired, the crops, trees or facilities that the latter plant or construct in urgency on the area determined to be acquired should never get compensation.

26. Article 30 Where the construction project is to use the state agricultural land whose access belongs to other institutions legally, the cost should be determined due to the compensation for land loss, disbursement, and resettlement.

27. Where the construction project is to use the construction land whose access belongs to other institutions or individuals legally, the project institution should give proper compensation to the land users in reference to the urban basic land price. Where the construction project is approved by law to use the state unused law, there is no need to disburse land compensation cost and resettlement subsidy.

28. Where the villages and towns need to use collective land for development of public facilities or commonwealth cause, those farmers whose land is acquired should be given resettlement subsidy or resettled the laborers who are suitable for some relevant regulations to work in the village enterprises, or adjusted with land.

29. Article 35 Where the construction, reconnaissance of earth quality, laying telecom wires and burying underground pipeline for the construction project need to use land temporarily, it should be approved by the land supervising departments of municipal and county people’s government. Among those, for the temporary land use in the state forest land area of reclamation and forestry, it should be approved by the organizations authorized by the land supervising department of provincial people’s government; for the temporary land use in the urban planning area, it should be agreed by the relevant urban planning supervising department before submission for approval.

30. Where it is to temporarily use the state land whose access has not been determined, the land users should sign interim contract of land use with the land supervising departments of municipal and county governments; where it is to temporarily use the rural collective land state land now used by other institutions, the land users should sign interim contract of land use with the original land users and land owners. The land users should disburse the compensation cost for temporary land use due to the stipulations in the contract.

31. The term for temporary land use should not exceed 2 years. The temporary land users should utilize the land on the purpose as the contract stipulates, permanent buildings are prohibited. Within 1 year after the term, the temporary land users should

129 recover or reclaim the land, if the land can not be recovered to the original situation the land reclamation cost should be handed in to the land supervising departments.

4. Notice on issues relating to regularize and adjust compensation criteria for occupied forest land promulgated by Forest Department, Price Bureau and Financial Department of Heilongjiang Province (H.L.L.F.[2007] No.185 dated December 17, 2007)

32. According to stipulations of “Forest Law of the People’s Republic of China”, it is necessary to adjust compensation criteria of occupied and acquisition forest land for purpose of safeguarding immediate interests of forest owner and ensuring successful implementation of national projects. Besides the forest vegetation rehabilitation fee which shall be strictly paid according to “Notice on Tentative Method of Forest Vegetation Rehabilitation Fee Payment and Utilization Management Issued by Financial Ministry and State Forest Industry Administration Bureau retransmitted by Provincial Financial Department and Provincial Forest Administration Department” (H.C.Z.[2003] No.17), the forest land compensation fee, forest tree compensation fee and resettlement subsidy fee would have been adjusted. The related issues are as follows:

I. Levying scope

33. The projects which occupied and acquired forest land approved according to law, units or individuals who changed usage of forest land shall return forest trees to owners, be charged with forest land compensation fee, forest tree compensation fee and resettlement subsidy fee (the forest land occupied by farmers for house building according to criteria shall follow related national regulations).

34. For approved temporarily occupation and requisition of forest land, the Employer shall pay forest land compensation fee and forest tree compensation fee following related chargeable standard.

35. To cut trees for purpose of occupation, requisition and temporary use of forest land, it shall be necessary to apply for cutting license according to law. The unit occupying, acquisition or temporarily use forest land shall return to forest owner after cutting (the expenditure arising from forest cutting shall be at his cost). In case of contract, the contract engagement shall be followed.

II. Charge standard

36. The construction units or individuals whose application for occupation or requisition of forest land has been approved shall pay compensation fees according to the followings in due course of time:

1).Forest land compensation fee standard: follow the standards in annexed schedule.

2). Forest tree compensation fee standard: follow the standards in annexed schedule.

3). Resettlement subsidy fee is 1500 CNY/mu.

III. Management and utilization of charges

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1) Forest land compensation fee and forest land compensation fee

37. To occupy or temporarily use state-owned forest land with approval according to law, the forest land compensation and forest tree compensation fee shall be respectively charged by provincial and county (city) level forest administration sector. Among which, the provincial level forest administration sector will retain 30%, and the county or city-level forest administration sector will retain 70%. To occupy or temporarily use state-owned forest land in forest industry after approval according to law, the provincial forest department will retain 20%. The other charges will be retained by forest industry. To requisite or temporarily use collective forest with approval according to law, the county or city-level forest administration sector will charge forest land compensation fee and forest tree compensation fee. The charged amount shall be returned to owners of forest land and/or forest tree. In case of contract for occupied land or temporarily used forest land, the contract engagement shall be followed.

2) Resettlement subsidy fee

38. To occupy state-owned forest land and requisite collective forest land with approval according to law, the county or city-level forest administration sector will charge resettlement subsidy fee. The charged amount shall be returned to owners of forest land.

3) The forest land compensation fee, forest tree compensation fee and resettlement subsidy fee charged by forest administration sectors at all levels are government non-tax revenue. The charges will be paid to corresponding special financial account in the proportion and controlled under Two Lines of Management Mechanism of Receipts and Expenditures according to stipulations in “Notice of Opinions on Deepening Reform of Two Lines of Management Mechanism of Receipts and Expenditures and Further Strengthening Financial Management Promulgated by Ministry of Finance and retransmitted by General Office of the State Council” (G.B.F.[2001] No.93). The Expenditures shall be used for required and occupied forest land’s investigation and design, site inspection, submission of documents for approval and protection and management of forest sources, plantation, forest cultivation, and resettlement subsidies for occupied forest land. It is strictly prohibited to embezzle for other purposes.

IV The chargeable units shall apply for “License of Charge” in price administrative sector and use charge invoices which are printed by financial sectors.

V. The “Notice on Issues Relating to charge 4 Fees for Occupied Forest Land Promulgated by Provincial Forest Department, Price Bureau and Financial Department of Heilongjiang Province (H.L.C.L.[1992] No.303) will be terminated at the same time.

39. The Notice shall come into effect since January 1, 2008. The duration of trial implementation shall be 1 year.

Appendix table : Criteria of forest land compensation fee and forest land compensation fee

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Land Scattering Wood Fencing Economically Important wood, Land isn’t Land no cultivating firewood wood, special profitable Nursery wood eco-forestry shrubbery matured wood land usage wood wood type land

CNY／ 5 3 2 5 3 2 5 2 1 sq.m

Appendix Table Compensation rate for Woods item Compensation rate Wood diameter(cm) type (CNY／unit) Below 5 (exclude 5) 20 5—10(exclude10) 30 10—15(exclude 15) 40 Man-made wood 15—20(exclude 20) 50 20—30(exclude 30) 60 Above 30 70

40. The compensation for natural forest shall be 20% higher than that for artificial forest. The compensation for young trees in nursery gardens shall be 30 CNY/ m2.

41. The compensation criterion for economic forest shall be 3-5 times of the annual direct value of the same tree species and the replacement cost including rehabilitation of tree land, seedlings, forest plantation and related management.

5. Notice on Issuance of “Tentative Method for levy, Utilization and Management of Forest Vegetation Rehabilitation Fee” of Ministry of Finance and State Forest Administration Bureau dated October 25, 2002, C.Z.[2002] No.73

42. Tentative Method for Levy, Utilization and Management of Forest Vegetation Rehabilitation Fee

Chapter General Principles

43. Article 1 In order to protect forest sources and promote sustainable development of state forest industry, the method is hereby formulated according to related stipulations in “Forest Law of the People’s Republic of China” and “Implementation Rules of Forest Law of the People’s Republic of China” (State Council Order No.278).

44. Article 2 The forest vegetation rehabilitation fee shall be regarded as governmental fund, controlled by financial budget, used for special purpose. The balance levied in last year shall be used in next year.

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45. Article 3 The levy, utilization and management of forest vegetation rehabilitation fee shall be supervised and monitored by financial and auditing sectors as well as upper forest administrative department.

Chapter II Levy

46. Article 4 To requisite, occupy or temporarily occupy forest land by the projects including mineral investigation and exploration, building roads, water conservancy, electricity and telecommunications with approval of forest administrative sector over county-level, the land use units shall prepay forest vegetation rehabilitation fee to the said sector according to this method.

47. Article 5 The forest administrative sector over county-level shall pre-charge forest vegetation rehabilitation fee according to the followings:

48. For occupation or temporarily occupation of forest land in the important forest area which the State Council has determined, the State Council forest administrative department or its entrusted unit shall be responsible for levy.

49. For occupation or requisition of forest land without the area, the forest administrative departments at provincial, prefecture and municipality level shall be responsible for levy.

50. For temporary occupation of forest land without the area, the forest administrative departments at county, city and province level shall be responsible for levy according to authorization in “Management Method on Review and Approval for Occupation and Requisition of Forest Land” promulgated by the State Forest Bureau (the State Forest Bureau Order No.2). Among which, for which shall be approved by the State Forest Bureau, the forest administrative departments at provincial, prefecture and municipality level shall be responsible for levy.

51. Article 6 The levying criterion of forest vegetation rehabilitation fee shall be calculated and determined by the cost of investigation and design as well as forest plantation and cultivation required by forest vegetation rehabilitation for not less than the area of occupied or requisition forest land. The details of levy shall be as follows:

52. For timber forest land, economic forest land, fuel wood forest land and nursery garden land, the charge will be 6CNY/ m2

53. For forestation land of young forest, the charge will be 4CNY/ m2.

54. For protection forest land and special purpose forest land, the charge will be 8CNY/ m2. For state important protection forest and special purpose forest land, the charge will be 10CNY/ m2.

55. For open forest land and shrub land, the charge will be 3CNY/ m2.

56. For suitable land for forest, cut-over land and burned land, the charge will be 2 CNY/ m2.

57. For forest land in urban area and urban planning area, the charge will be 2 times of the situation mentioned above. For farmer’s occupation of forest land for building houses,

133 the forest vegetation rehabilitation fee will not be charged for the moment during “11th Five-year Plan”.

58. Article 7 The forest administrative departments above county level shall use the governmental fund receipts printed by Ministry of Finance and financial departments at provincial, prefecture and municipality level according to affiliation when they levy forest vegetation rehabilitation fee.

59. Chapter VI Supplementary Provisions

60. Article 18 The method shall come into effect since January 1, 2003. In case of conflict of related regulations at province, prefecture and municipality level, this method shall prevail.

61. Article 19 The method shall be interpreted by Ministry of Finance and State Forest Bureau only.

62. Article 20 The financial and forest administrative departments at province and municipality level may formulate corresponding implementation rules according to the method and submit to Ministry of Finance and State Forest Bureau for record.

6. Heilongjiang Province Implementation Method of Regional Land Acquisition Integrated Price, 2009

63. Article 1 In order to promote reform of rural occupied land system, perfect compensation and resettlement mechanism of occupied land, regularize actions of occupied land compensation and resettlement, safeguard farmer’s lawful rights and implement the principle of the same price for the same land for occupied land, this method hereby formulated according to “Land Administration Law of the People’s Republic of China”, “Land Administration Rules of Heilongjiang Province” and “State Council’s Decision on Deepening Reform and Strictly Controlling Land” (G.F.[2004] No.28) and in combination with provincial actual situations.

64. Article 2 The compensation and resettlement for occupation of rural collective land within jurisdiction area of Heilongjiang Province is applied to this method.

65. Article 3 The compensation criterion for occupied land within jurisdiction area of Heilongjiang Province shall follow the comprehensive premium on regional films determined by occupied jurisdiction region. The land area integrated price in this method means regional compensation criterion of occupied land according to the factors including type of occupied land, production value, location, grade of farming land and quantity of local per capita cultivated land, land supply relationship, economic development level, and minimum living standard level for urban residents. It excludes compensation criteria for attachments and young crops on the ground. The land requisition area shall be classified based on administrative village. The boundary shall be coordinated with that of administrative village.

66. Article 4 The people’s governments at city and county level shall be responsible for organization and calculation of land area integrated price in different regions and organize

134 hearing meetings according to related stipulations of the state and related provinces. The land sources administration departments shall be responsible for balance of land area integrated price among affected regions. After approval of provincial government, it shall be announced and implemented by people’s governments at city level.

67. Article 5 Prior to December 31, 2008, the people’s governments at all levels shall publish land area integrated prices, including land area integrated price and implementation date in affected area as well as relevant requirement. In addition, the related information shall be submitted to provincial government for record and meanwhile send a copy to provincial land resources administration department within 5 days after publication. Once announcement and implementation of land area integrated price, it shall be strictly implemented and cannot be reduced without prior consent. The people’s government at city and county level shall adjust calculation of land area integrated price every 2 or 3 years according to changes of regional economic development level, land supply and demand relationship, and urban and rural social guarantee system, and publish and implement it after approval of provincial government.

68. Article 6 The compensation fee for requisition land shall be calculated according to land area integrated price and occupied land area.

69. Article 7 The compensation fee determined by land area integrated price shall be used as follows after payment of social welfare expenses which shall be paid by collective economic organization and individual: 70% for subsidies of farmer resettlement, 30% for infrastructure and public facilities construction, establishment of village-owned enterprise and farmer living subsidies organized by collective economic organization which holds ownership of collective land. In case that the land requisition compensation fee is not enough for farmer social welfare expenses, the local government shall pay with income from sales of using right of state-owned land, properly solve the issues including farmer’s employment, housing and social welfare security. The farmers whose land have been requisition in this method mean farmers who have registered as agricultural population and own management right of rural contracted collective land according to law.

70. Article 8 The number of resettled people means that of people whose land have been requisition and await to be resettled. It shall be determined by that quantity of land which has been requisition divided by the quantity of per capita cultivated land before requisition. The resettled people shall be fixed by collective economic organization among farmers who all or most of land has been requisition.

71. Article 9 In case of young crops or attachments existing on requisition land, the property owner shall be compensated. Compensation for young crops may be compensated according to 4% - 6% of land area integrated price. The compensation for ground attachments and housing relocation shall follow urban removal and relocation method of local people’s government. Or, the city-level people’s government shall separately draft related rules. After pre-announcement of land requisition by city and county-level people's government, any urgently planted, cultivated and constructed young crops or ground attachments will not be compensated.

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72. Article 10 For 1-year temporary use of farmer collective land or state-owned land necessary for project construction and geological exploration, the property owner of requisition land shall be compensated with 10% of land area integrated price, 20% of the same for 2 years.

73. Article 11 The county and city-level people’s government shall review, approve and implement compensation and resettlement plan for requisition land according to land requisition plan approved by the State Council or provincial government. The compensation fee for land requisition, ground attachments and young crops shall follow compensation and resettlement plan of land requisition and budget approved by financial sector.

74. Article 12 Local people’s governments (administration) at municipal (area) and county (municipal) levels should timely integrate sources of financial, land resource, labor and social security, agricultural, civil administration and police departments to implement the tasks of compensation and reimbursement fees.

75. Article 13 The police should timely serve the peasants who should be changed as urban residential registration due to land requisition.

76. Article 14 The civil administration should improve the subsistence allowance system, to cover the eligible peasants who are involved in land requisition.

77. Article 15 As per the old-age insurance police for peasants involved in land requisition the labor and social security department should enter the peasants who are listed by the collective economic organization into the insurance. A unified urban and rural employment service system should be established step by step, due to which the favorable employment and reemployment policy and the employment aid for the vulnerable group could reach the peasants involved in land requisition.

78. Article 16 Local people’s governments (administration) at municipal (area) and county (municipal) levels should include the expenditure of land requisition compensation into the revenue and expenditure budget of state-owned lands usage. Implementation of the revenue collected from leased lands should firstly ensure full payment for the land requisition compensation, and allowances for social security and for maintaining original living conditions of the peasant involved in land requisition. The relevant regulations have to be strictly followed to make sure that the budget for land requisition compensation includes the social security expenditure for peasants involved in land requisition.

79. Article 17 Local people’s governments and financial departments at all levels should take good care of the financing, transferring, and payment installing of the money needed to enter the peasant involved in land requisition into the social security, ensure the fund can be timely and properly used, and eventually establish a long-term subsistence security mechanism for the peasant involved in land requisition.

80. Article 18 The financial department should directly transfer the compensation for land requisition, ground attachment and crops to the accounts of social security, individual and rural collective economic organizations respectively. Collective economic

136 organizations should provide detailed lists of peasants involved in land requisition. Based on the lists compensation for land requisition, ground attachment and crops as well as the resettlement fees can be distributed to the individuals via registered bank cards or bankbooks, reducing intermediate links to prevent retention, misuse and diversion of the fund, and to ensure the legal rights of the peasant involved in land requisition.

81. Article 19 Registration alteration procedure of the requisitioned land should be handled by the land resource administration as per the relevant laws and regulations. If the local people’s governments (administration) at municipal (area) and county (municipal) levels could not finance sufficient land requisition compensation fund, or the social security measures have not been implemented, it is not allowed to force any land requisitioned by any authority.

82. Article 20 Local people’s governments at all levels should try all the efforts to provide peasants involved in land requisition with free targeted professional skill trainings, to create possibilities that the entities using the requisitioned land could employ the peasants. The entities using the requisitioned land should try to create and/or offer job opportunities for the peasants involved in land requisition. The first employment period of the peasants should not be less than three years.

83. Article 21 If the peasant whose land has been requisitioned is not willing to leave his collective economic organization, and if the collective economic organization has other available land resource, the land of the collective economic organization can be granted to the peasant with the consent of more than 2/3 of the villagers or the consent of more than 2/3 of the villager committee members, but the land requisition compensation due to the peasant should be given to the collective economic organization; if the collective economic organization does not have any resource available, the peasant involved in land requisition can exchange land with others who would give the land and take the compensation.

84. Article 22 If the local government and the responsible administration can not provide basic living and producing conditions for all the peasants who lose land due to the requisition, with the consents of the local villagers and the resettlement area local administration, the municipal (area), and county (municipal) government (administration) could integrate all the available resources to resettle the abovementioned peasants in other areas, and the allowances for those people should be transferred to the authorities offering jobs to the peasants.

85. Article 23 In case that the requisitioned land is not enough for one resettlement requirement, the resettlement can be completely replaced with financial compensation: the allowances which should be used for resettlement can be directly given to the people; after the peasants being entered in the old-age insurance, if they are willing to find other solutions than the resettlement offered by the government, resettlement compensation agreements can be signed with these people so that all the allowances which should be used for resettlement can be paid to the people.

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86. Article 24 Rural collective economic organizations should timely open the revenue and expenditure of land requisition compensation to all the members of the organization for supervision. The financial, land resource, agricultural departments and civil administration and the police at municipal (area) and county (municipal) levels should strengthen the cooperation to supervise and ensure that the land requisition compensation can be properly distributed at a full amount and also the resettlement can be correctly implemented, supervising the rural economic organizations for reasonable usage of the land requisition compensation revenue. The concerned authorities should timely rectify any retention, diversion, occupation or delay payment of the land requisition compensation, if there is any. Those who break the discipline due the abovementioned misbehaviors should be timely handled by the disciplinary department for penalty; and if any crime is constituted the people should be investigation by legal authorities for criminal responsibility.

87. Article 25 For land requisition applied for approval before (and included) December 31st, 2008, resettlement should be implemented according to the following conditions:

88. If the State Department and the provincial government have approved the land requisition application, the approved land requisition compensation plan should be implemented accordingly.

89. If the preparation of land requisition has been approved as per the relevant legal regulations and also the requisition application has been installed in the provincial government or the State Department for changing usage of farming land, and/or approval for land requisition, the proposed land requisition compensation plan should be implemented.

90. If the preparation of land requisition has been implemented according to the relevant legal regulations, but the application for changing usage of farming land, and/or land requisition has not been submitted to the provincial government or the State Department, the land requisition compensation should be implemented based on the area comprehensive price of the requisitioned land.

91. Article 26 Local people’s governments (administration) at municipal (area) and county (municipal) levels should make a further improvement of the land requisition organization, strengthen management and improve requisition regulations, give more efforts to build a honest and industrious requisition team to make sure the involved peasants will be properly resettled and compensated.

92. Article 27 Local people’s governments (administration) at municipal (area) and county (municipal) levels should widely introduce the concept of area comprehensive price to the public before implementation. The price should be open and explained to the public, to keep social stability and a harmonious development of the city.

93. Article 28 Resettlement and compensation for requisitioned state-owned land can be referred to this regulation.

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94. Article 29 This regulation will be put into force since January 1st, 2009.

7. Notice issued by Heihe Municipal Government for Implementation of “Standard of Area Integrated Price for Land Requisition of Heihe City” (December 31st, 2008)

95. As per “State Department Decision on Strengthening Reform and Management of Land Resource” (GF [2004] No28), the municipal government drafted “Standard of Area Comprehensive Price for Land Requisition of Heihe City”. The standard has been approved by Heilongjiang Provincial Government via the correspondence HZ [2008] No127. Herewith, the standard is issued for implementation, and relevant issues are notified as follows:

1) Since January 1st, 2009 land requisition compensation (including compensation for requisitioned land and allowances for resettlement) should be implemented as per “Standard Area Comprehensive Price for Land Requisition of Heihe City”.

2) Compensations for ground attachments and construction should be implemented as per “Provisional Measures for Urban Removal and Resettlement of Heihe City”.

3) All the local people’s governments at county (municipal) and district levels should widely introduce the relevant area comprehensive price for land requisition of the concerned area to the public by all available means, and timely feed back to the municipal government.

4) Generally the area comprehensive price for land requisition should be adjusted every 2 or 3 years according to the actual status of the concerned area.

5) Land requisition compensation for state-owned farming lands should be referred to the standard for land requisition area comprehensive price.

Integrated Land Price of Nenjiang County CNY/㎡

No. Price District

Nenjiang-1 16.93 Woduhe township

Duobaoshan town, Helongmen Township, Zuohutan Nenjiang -2 18.27 Township, Menluhe Township

Lianxing Township, Xinshen Township,Haijiang Town, Nenjiang -3 19.46 Changfu Town, Qianjin Town, Linjiang Township

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No. Price District

Haijiang Town (Shenli Village, Shuguang Village, County Nenjiang -4 20.98 Seeds Farm）, Changfu town (Changqing village, Yongfeng Village),Qianjin town (Wenzhi Village)

Nenjiang -5 19.5 Shuangshan Town, Yilaha town

Nenjiang -6 19.42 Keluo town

Nenjiang -7 18.73 Taxi township, Baiyun township, Maihai Township

Nenjiang -8 20.94 Changjiang township

Nenjiang town (Juxiang village, Lixin village, Xinhe village, Dongxiao village, Huimin Village, Out of Nenjiang -9 31.94 Sijichuncheng, Tuanjie Villing, Out of Sijiqingcheng, Xuguang)

Nenjiang -10 26.03 Sijia Village

Bei’an City Land Acquisition Integrated Price CNY/㎡

No. Price District

1 15.8 Erjing town Chengjiao township 2 60.5 (excluding Jianmin, Xinwei, Shuangqing village) Chengjiao township（the original Shenli township, Jianmin 3 15.8 Xinwei Shuangqing village） Dongshen, Xingdong Seeds Farm，81850Military Farm, 4 15.8 Tongxubin

5 16.8 Qinghua Farm

6 16.8 81312Military Farm

7 16.8 Shensi Farm

8 16.8 81067Military Farm

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No. Price District

9 16.8 Breeder Farm

10 16.8 81562，81700Military Farm

11 16.3 Zhaoguang town

12 16.3 Gangyao Forestry Center

13 16.3 81773，81413Military Farm

14 16.3 81852，81672 Military Farm, Forestry of Shihua Township

15 16.3 Ynagjia township

16 16.8 Xingdong Seeds Farm, Tongxing Town Haixing Township（excluding Xingwang Village, Haixing Village, 17-1 16.8 Xinglong Village） Haixing Township（Xingwang Village, Haixing Village, Xinglong 17-2 20.6 Village

18 20.6 Zhuxing Township

19 16.5 81365 Military Farm

20 16.5 81323 Military Farm

Integrated Price of Wudalianchi City

No Price District

Qingshan town, Deli Village, Wusan Village, Qingshan village, 1 38.69 Hexin village, Provincial Military Farm, Longtou village, Longfeng village

Chaoyang township, Lianhua Committee, Stock Farm, Fugang 2 16.08 Farm, Xing’an forestry center(part)

3 14.85 Xing’an township, Xing’an Forestry Center (part)

Gudonghe Forestry Center, Gudonghe Seeds Farm、6409、 4 18.53 65053Military Farm（81425）、 Longzhen Farm of Military （81513、81595）

Longzhen, Nemoer, 65659 Military Seeds Farm（81054）、 5 21.37 65352 Military Farm(81389)

6 18.42 65571 Military Farm (81378)、

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No Price District

7 20.59 Tuanjie township, Daqing Farm

8 21.54 Shuangquan Town, Yongfeng Farm, Xinfa Township

9 19.29 Heping Town, Taiping Township, Siping, Jianshe Township

10 19.82 Xinglong Township

11 20.64 Huashan Jail, Fenghuangshan Jail, Huayuan Farm

Integrated Price of Wudalianchi geopark

No. Price District

1 21.55 Longquan village, Qingquan village, Linquna Village, Seeds Farm

Wudalianchi Yuanzhong Farm、Jiaodebu Forestry Center,, Yaoquan 2 17.48 Forestry Center, Xiaogushan Forestry Center, Dalian Military College Farm、 65301Military Farm, 80301Military Farm

8. Notice to Unite Farmland Occupancy Tax Rate for Highway Construction, Ministry of Financial, 1989

96. For the area with the average tax rate of CNY5/ m2 above checked and ratified by the Department, it is to collect at CNY2/ m2; for the area with the average tax rate of CNY5/ m2 below, it is to collect at CNY1.5/ m2.

97. Where it is quite difficult to hand in taxes for the highway that state adopts labor to supersede for cost in the remote and poor areas, the provincial and municipal financial departments (bureaus) should check and testify it, put forward specific opinions and then submit to financial department for approval to take favorable consideration.

98. The local governments should conduct the tax collection well for the highway constructors, without self decision on deduction, delay or exemption. For the ratepayers who have defaulted to be taxed should be treated due to the relevant regulations.

9. Heilongjiang Management Methods of Accepting and Using Farmland

Reclamation Fee， 2001

99. Article 6 Where the institutions and individuals who work in non-agricultural construction and who are approved to use farmland, it should be the farmland users who is responsible to reclaim the farmland in quantity and quality equal to the original farmland

142 on the waste land suitable for agricultural cultivation determined by the overall planning. If the land users have difficulty in reclamation by themselves, the farmland reclamation cost should be paid to the land supervising departments at county level above due to the quantity of land acquired. Where the construction projects need to use the land beyond the planning area and belong to traffic, water conservancy, military facilities projects, the farmland reclamation should be paid at the rate of CNY5,000/ha.

10. Heilongjiang Basic Agricultural Land Prevention Regulations (Revised), 1995

100. To revise the original Item 1 of Article 16 to be the following, “Where the non-agricultural construction projects are approved by State Council to acquire or use basic agricultural land, the land users including institutions and individuals should take charge of reclamation the farmland in quantity and quality equal to the original, in addition to handing in relevant taxes and costs due to the state and provincial regulations; if no condition to reclaim or not suitable for it, the farmland reclamation cost should be paid to the people’s government at county level above in accordance with the regulations of Heilongjiang Land Administrative Regulations, where the vegetable land in the protection area for basic agricultural land, the construction fund for new vegetable land should be paid due to relevant regulations.”

101. The regulation put in force since the date of announcement.

102. After revise Heilongjiang Basic Agricultural Land Protection Regulations in consistence with the decision, it should be publicized over again.

11. The notice of print and distribution the regulation of ‘ The standards of Farmland re-cultivation fee collection of Heilongjiang Province’, 1991

103. Article 1 In accordance with the stipulation of Article 10 of Heilongjiang Land Reclamation Implementation Methods (IM hereinafter), the rate is formulated.

104. Article 2 The enterprises and individuals working in productive construction in the provincial prefecture, causing damage on land should conduct reclamation due the IM, that is to conduct reclamation by the enterprises and individuals causing land loss; if they have no ability to reclaim, the others who have the ability can contract to reclaim; or to hand in land reclamation cost to the local land supervising departments and the latter take charge of this. In the last case, the enterprises and individuals causing land loss should pay land reclamation cost to the land supervising departments due to the Rate.

105. Article 8 For the land damaged by press, and to be reclaimed without removing piling-up as the reclamation planning, the land reclamation cost should be collected at the rate of CNY0.20 to 0.50/ m2.

106. Article 9 For the land damaged by press, and to be used for other production and construction without removing piling-up as the reclamation planning, the land reclamation cost should be collected at the rate of CNY0.10 to 0.20/ m2.

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12. The notice of print and distribution the regulation of ‘Land management fee collection regulations of Heilongjiang Province’, 1995, Land Administration Bureau, Price Bureau, Finance Department of Heilongjiang Province

107. Article 4 Collecting Standard of Land Administrative Cost

I. For the state infrastructure, and that of state institutions and enterprises, collective institutions and enterprises, foreign invested enterprises, all kinds of joint ventures, stock enterprises and private-owned enterprises the farmland in the urban planning areas is allocated or acquired, the land administrative cost of CNY2.50 to 3.00/ m2 should be collected once, for the non-farmland, it should be CNY2.00 to 2.50/ m2; for the farmland in the prefecture of county seat, municipality at county level and administrative towns, the administrative cost should be determined CNY2.00 to 2.50/ m2 once and for the non-farmland, it is CNY1.50 to 2.00/ m2; for the farmland beyond the urban planning area is acquired or allocated, the land administrative cost is determined CNY1.00/ m2 once, and for the non-farmland, it is CNY0.80/ m2.

II. For the productive enterprises and individuals (farmers excluded) in agriculture, forest, pasture, sideline and fishing ponds need to acquire and allocate land for agricultural and pasture production, the land administrative cost of CNY0.03/ m2 should be collected once; for the land use for the agricultural and pasture production, it is CNY0.80/ m2.

108. Article 10 For the land use for infrastructure, its collecting methods of land administrative cost should be combined with the authorized limitation of the construction land license by the land administrative departments at all levels one-off.

109. As for the land use for construction projects in prefecture is approved by the municipality (county), the land administrative cost should be collected by the municipal (county) land supervising departments. And in the month the land is approved, 20% of the administrative cost should be handed to the provincial land administrative bureau and the other 80% should be returned to the county land administrative departments.

110. As for the land use for construction projects approved by province and state, the land administrative cost should be collected by the provincial land administrative bureau directly from the project land users and in the month the land is approved, the 80% of the land administrative cost should be returned to the land administrative departments of the municipality (county) in whose prefecture land is acquired or allocated.

13. Provisional Measures of Old-Age Insurance for Peasants Involved in

Land Requisition in Heilongjiang Province，2008

Chapter One General Principles

144

111. Article 1 To properly solve the problem of social security for peasants involved in land requisition, guarantee basic living conditions for the peasants when they become old, and also protect their legitimate rights and interests, the Measures (Provisional Measures of Old-Age Insurance for Peasants Involved in Land Requisition in Heilongjiang Province) have been drafted based on the actual status of the province, particularly according to regulations issued by General Office of the State Department, including “Guidelines to Employment Trainings and Social Security for Peasants Involved in Land Requisition” (GBF [2006] No.29), and “Notification for Standardizing Management of Revenue and Expenditure Collected from Leased State-owned Land Use Right” (GBF [2006] No.100).

112. Article 2 The Measures are only applicable for the peasant who has a registered rural residential identity in the administrative area of the province, maintains rural collective land operation contract, and the land has been approved by the government for requisition.

113. Article 3 The peasants whose land has been requisitioned should be entered in the old-age insurance as per the Measures. A timely payment for insurance premium should be maintained by the peasants, so that when the specified age is reached the peasants can receive monthly pension money from the insurance.

114. Article 4 Expenses for the old-age insurance of the peasants involved in land requisition should be organized by the local governments at all levels. The concerned administrative governmental entities should take care of the parts included in the insurance according to the entities’ function. The land resource department should be responsible to collect basic data of the requisitioned land; the financial department should be in charge of installing and supervising old-age insurance pension payment to the peasants; and the labor and social security department should deal with specifying and managing of old-age treatments.

115. Article 5 The old-age insurance pension for the peasants involved in land requisition should be adapted to the actual status of local economy, and should be higher than the standard for the local urban subsistence security allowance.

Chapter Two Qualification Confirmation for Old-Age Insurance

116. Article 6 Due to ages, the qualified peasants who are to be entered in the old-age insurance should be divided in premium-paying peasants and pension-receiving peasants.

1. The qualified males from 16 to 59 years, and the qualified females from 16 to 54 years should be identified as premium-paying peasants; 2. The qualified males at/over 60 years and the qualified females at/over 55 years (including the peasants whose residential identities have been change from rural to urban registration but their land has also been requisitioned) should be identified as pension-receiving peasants.

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The calculation related to ages should be taken referring to the issuing date of the government approved “Announcement of Land Requisition Compensation Proposal”.

117. Article 7 Qualification confirmation for old-age insurance

In accordance with the number of peasants to be entered in old-age insurance confirmed by the municipal and county governments, the local villager committee should confirm the peasants’ qualification for those whose complete or most of the land has been requisitioned for entering in the insurance. After these confirmed peasants are also approved in a villager meeting or in a villager representative meeting with the consent of over 2/3 of the meeting participants, the insurance application of the approved qualified peasants should be submitted to the municipal and county rural social security and old-age insurance organization for handling.

118. Article 8 After qualification has been confirmed for the peasants whose land has been requisitioned old-age insurance for the peasants should be implemented according to the following conditions:

1. The peasants who are changed from rural to urban residential registration should be entered in the old-age insurance according to the Measures, but if and when they would be covered in the urban employee basic old-age insurance should be done as per their own wishes. If the peasant has already been in the rural old-age insurance before his registration changed, the paid premium and the due interest for the rural old-age insurance should be returned to the peasant at lump sum. After land requisition, if the peasant is provided with an employment in urban area, the urban employee old-age insurance should be offered for the peasant as per the relevant regulations. 2. Due to land requisition, if the peasant losses complete or most of his land but still maintain a rural residential registration, the relevant entities should enter the peasant into the old-age insurance as per the Measures. If the peasant has already been covered in the old-age insurance, the insurance should be remained, and the premium should be installed accordingly.

119. Article 9 Within 30 days after submitting the list of qualified peasants to be entered in the old-age insurance to the relevant entities for record, the villager committee should provide the required identity certificates to the municipal and county rural social old-age insurance entities for filing the old-age insurance. As soon as the applications and

146 qualification of the peasants verified by the rural old-age entities, the peasants should be provided with a book of old-age insurance for peasants involved in land requisition.

120. Article 10 The Measures are not applicable for the peasants of the following conditions:

1. After land requisition, the peasant receives a land of the same size and quality as the requisitioned land; 2. The peasant has already been covered in the urban employee old-age insurance and provided with the treatment of the basic old-age insurance; and 3. The peasant moves his residential registration out of the city and the county after receiving the land requisition compensation and the allowances for resettlement.

Chapter Three Financing and Payment Installing of Old-Age Insurance Premium

121. Article 11 Old-age insurance premiums for the peasants involved in land requisition should be financed via the following sources:

1. Land requisition compensation and the allowances for resettlement installed for the households and the village collective economic organization; and 2. The allowance contributed by the government due to the revenue from the leased land.

14. Heilongjiang Provincial Farmland Occupation Tax Regulation， 2008

122. Article 1 In order to make a reasonable use of land resources, strengthen management of land, protect farming land, and standardize management of farming land occupation tax collection, the province drafted the Measures in accordance with “Provisional Regulation for Farmland Occupation Tax of PRC” (State Department Order No51) and “Implementation Rules of Farmland Occupation Tax of PRC” (Joint Order No.49, Finance Ministry and State Taxation Administration), as well as with the actual status of the province.

123. Article 2 The taxpayer who is obliged to pay farmland occupation tax refers to any entity or individual occupies farmland in the administrative area of the province, including cultivated land, wooded land, grassland, land for farmland water conservancy, water surfaces for breeding, and fishing beach land, for any house construction or committing with any business other than agricultural construction. The taxpayer of the abovementioned conditions should file farmland occupation tax as per the Regulation (Heilongjiang Provincial Farmland Occupation Tax Regulation).

124. Article 4 Taxpayer’s provisional use of farmland should also comply with the Regulation and pay for the farmland occupation tax. If the taxpayer can reinstate the

147 provisional occupied land to the original status for farming, the paid farmland occupation tax will be fully returned to the taxpayer.

125. Provisional occupation of farmland refers to the taxpayer’s short-term usage of farmland which should not be exceeding 2 years, for construction or geological survey purpose but without leaving any permanent construction in the used area.

126. Article 14 If the occupied farmland will be used for railways, highways, airport runways, aircraft hardstand, harbors, and sea-route area, the farmland occupation tax should be installed at a favorable rate of 2 yuan per square meter.

127. This favorable tax policy for railways only refers to the construction of railway foundation, bridges, culverts, tunnels and reserved ground along the railway in accordance with the specification of the Regulation. However, if the occupation of farmland for to the use of special access railroad and railways should be taxed at the local farmland occupation tax rate.

128. This favorable tax policy for highways should be limited to the occupation of construction main body of approved national, provincial, county, township highways, and village roads which constitute the rural highway, as well as the drainages along the both sides of the road. Occupation due to special highways and urban motorway should be taxed at the local farmland occupation tax rate.

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Appendix 4 Status of Affected Town, Township, State Farm, Forestry Farm

1. Farm Economy Indicators

（1）Population

Appendix Table 4-1 Population of Each Farm Number of HH Population at Net income per No. Farm at end of year end of year Capita（CNY）（HH）（person）

1 Weishan Farm 3,041 10,132 7,501

2 Geqiushan Farm 3,283 78,16 8,624

3 Hongxing Farm 3,951 11,892 7,703

4 Yinlonghe Farm 4,125 12,609 7,024

5 Qixingpao Farm 5,217 14,048 8,409

6 Nenjiang Farm 4,317 11,359 9,001

Total 23,934 67,856

（2）Enterprise of Farm

Appendix Table 4-2 Status of Farm Enterprises (2007) unit: unit

Transportation Wholesale Hotel and Industry No. Farm and storage and retail Catering enterprise enterprise enterprise enterprise

1 Weishan Farm 3 1 1 0

2 Geqiushan Farm 4 1 1 0

3 Hongxing Farm 4 1 2 0

4 Yinlonghe Farm 4 1 2 0

5 Qixingpao Farm 2 0 2 0

6 Nenjiang Farm 1 0 2 0

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（3）Education and Sanitation of Farm

Appendix Table 4-3 Education and Sanitation of Farm (2007) Number of Health No. Farm School institutions

1 Weishan Farm 2 14

2 Geqiushan Farm 2 6

3 Hongxing Farm 2 24

4 Yinlonghe Farm 2 22

5 Qixingpao Farm 3 1

6 Nenjiang Farm 2 1

（4）Land Resource of Farm

Appendix Table 4-4 Status of Farm Land (2007) (unit: mu) Barren land Cultivated No Farm Forest Area can be Land Area cultivated

1 Weishan Farm 228570 111705 0

2 Geqiushan Farm 211905 115005 3810

3 Hongxing Farm 335475 42660 49785

4 Yinlonghe farm 334920 112665 43455

5 Qixingpao Farm 467115 206745 65115

6 Nenjiang Farm 386745 89025 0

(5)GDP of Farm Appendix Table 4-5 GDP by Industry (20007) (unit: 10,000 CNY)

Primary Secondary Tertiary No Farm GDP Industry Industry Industry

1 Weishan Farm 17046 10815 1636 4595

2 Geqiushan Farm 17896 9605 3221 5070

3 Hongxing Farm 23784 15542 1680 6562

4 Yinlonghe farm 19716 12762 2609 4345

5 Qixingpao Farm 29203 20552 1777 6874

6 Nenjiang Farm 23577 17296 1491 4790

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（6）Output of The Primary Industry of State Farms

Appendix Table 4-6 Primary Industry Output of Farm (2007) (unit: 10,000CNY)

Animal No. Farm Total Farming Forestry Fishery Husbandry

1 Weishan Farm 23066 17164 52 5430 21

2 Geqiushan Farm 20623 12718 46 7805 54

3 Hongxing Farm 31141 24689 120 5709 90

4 Yinlonghe Farm 28516 21823 436 6022 176

5 Qixingpao Farm 37250 27344 303 7831 136

6 Nenjiang Farm 32290 23426 198 7256 21

2. Social and Economy Status of Forestry Bureau

（1）Population Appendix Table 4-7 Population in 2007 Number of HH Population Income total Forestry officer Bureau Person HH Person 1000CNY

Tongbei 1457 12533 32548 19600

Suiling 1567 20254 46052 47866

Cuiluan 2622 17826 49777 56940

（2）The Output of Primary Industry of Forestry Bureau Appendix Table 4-8 Output of Primary Industry (unit: 10000 CNY) Un-forestry industry of Total Industry related forestry Forestry forestry industry system Bureau Sub- Sub- Sub- State- State-Owned Private State-Owned Private Private total total total Owned

Tongbei 18072 3181 14891 4207 3181 1026 13865 0 13865

Suiling 25285 12908 13187 11298 11298 0 13987 800 13187

Cuiluan 6666 3364 3302 3616 3364 252 3050 0 3050

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（3）Structure of Secondary Industry Appendix Table 4-9 Structure of Secondary Industry (unit: 10000CNY) Un-forestry industry of Total Industry related forestry Forestry forestry industry system Bureau Subtotal State-Owned Private Subtotal State-Owned Private Subtotal State-Owned Private

Tongbei 6628 3039 3589 2174 2174 0 4454 865 3589

Suiling 7642 1723 5919 2910 432 2478 4732 1291 3441

Cuiluan 16788 0 16788 9018 0 9018 7770 0 7770

（4）Structure of Tertiary Industry Appendix Table 4-10 Structure of Tertiary Industry (unit: 10000CNY) Non-forestry industry of Total Industry Related Forestry Forestry forestry industry system Bureau Subtotal State-Owned Private Subtotal State-Owned Private Subtotal State-Owned Private

Tongbei 5671 351 5320 7 7 0 5664 351 5313

Suiling 5191 939 4252 147 0 147 5044 939 4105

Cuiluan 5639 0 5639 1219 0 1219 4420 0 4420

（5）Tourism and Service Appendix Table 4-11 Forestry Tourism and Services Industry (unit: 10000CNY) Total Forestry Bureau Subtotal State-Owned Private

Tongbei 7 7

Suiling 147 0 147

Cuiluan 1219 0 1219

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3. Social and Economy Indicators of Each Township and Town

（1）Population Appendix Table 4-12 Population of Each Township and Town Number of Number of village Population: Site Township Household : Male Female Committee: person HH unit Xinfa 10 4951 16084 8600 7484 Township Wudalianchi Xinglong 7 3239 10174 5596 4758 City Township Shuangquan 8 4914 16419 9195 7221 Township

Erjing Town 7 5361 18586 10480 8106

Zhaoguang Bei’an City 7 3997 13711 7420 6321 Town Chengjiao 7 4336 12450 6424 6026 Township Haijiang 16 13848 41846 23434 18412 Town Nenjiang Changfu 12 6160 20005 10803 9202 County Town Nenjiang 5 1714 13825 7604 6221 Town

Total 48520 163130

（2）Cultivated Land Status Appendix Table 4-13 Cultivated Land Situation of Town and Township Cultivated Cultivated Land Dry Wet Forest Site Township Land Area per land land land area Area Capita Xinfa 122565 7.6 122565 0 2220 Township Wudalianchi Xinglong 86385 8.5 86385 0 825 City Township Shuangquan 121530 7.4 114510 3000 1110 Township Erjing Town 185940 10.0 185565 375 11535 Zhaoguang Bei’an City 183540 13.4 183090 450 Town Chengjiao 129900 10.4 12840 150 Township Nenjiang Haijiang 448810 10.7 448810 0 County Town

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Cultivated Cultivated Land Dry Wet Forest Site Township Land Area per land land land area Area Capita Changfu 353430 17.7 353430 0 4044 Town Nenjiang 61995 4.5 61995 0 Town

（3）Facilities for Living and Production Appendix Table 4-14 Facilities for Living and Production Drinking Site Township Electric Post- Telecom Highway CATV water Xinfa 10 10 10 5 10 10 Township Wudalianchi Xinglong 7 7 7 7 5 7 City Township Shuangquan 8 8 8 8 2 8 Township

Erjing Town 7 7 7 7 7 7

Zhaoguang Bei’an City 7 7 7 7 7 7 Town Chengjiao 7 7 7 7 7 7 Township Haijiang 16 16 16 16 16 16 Town Nenjiang Changfu 12 12 12 12 12 12 County Town Nenjiang 5 5 5 5 5 5 Town

（4）Per Capita Income Structure of Rural Person Appendix Table 4-15 Per Capita Income Structure of Rural Person Income Outsider Planting Forestry of Agricultural Transportation work income income Site Township farmers income per income per income per per per capita capita per capita capita capita capita Xinfa 2990 2516 2204 43 183 789 Township Wudalianchi Xinglong 3333 5322 5322 7 11 302 City Township Shuangquan 3104 3237 3237 2 39 459 Township

Erjing Town 3952.9 5901 5901 55 592 1507 Bei’an City Zhaoguang 4421.5 5762 5278 4 45 523 Town

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Income Outsider Planting Forestry of Agricultural Transportation work income income Site Township farmers income per income per income per per per capita capita per capita capita capita capita Chengjiao 4248.9 4824 4824 4 112 2568 Township Haijiang 4435.8 4323 4323 2 85 549 Town Nenjiang Changfu 4361.4 5136 5114 6 9 516 County Town Nenjiang 2887.6 2294 2250 1 93 256 Town

（5）Social Security Appendix Table 4-16 Social Security Information Number Number of Number of of persons persons persons Beadhouse* participated participated benefit Site township and Welfare the basic the from the house medical endowment lowest insurance insurance life guarantee Xinfa 1 9435 108 348 Township Wudalianchi Xinglong 1 5239 228 City Township Shuangquan 1 11207 70 182 Township

Erjing Town 1 760

Zhaoguang Bei’an City 1 Town Chengjiao 1 Township Haijiang 1 Town Nenjiang Changfu 1 County Town Nenjiang 1 Town * Beadhouse is for the old-aged persons to spend their rest of life

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Appendix 5 Land Acquisition Tables I Impact of Land Acquisition Affected by Main Road 1. Impact of Land acquisition affected by main road (1). Impact of land Acquisition from Forest and Farm (excluding land for service area and toll gate )

Appendix Table 5-1 Land acquisition areas of State farms and forest farms (unit: mu) Locatio Farms and Dry Forestry Un-used Vegetable Fish Residential Old Grassland lawn Others Total n forestry farms farmland land land garden pond land road Cuiluan forestry Yichun 25.1 1672.9 23.4 11.1 10.1 1742.6 bureau Suiling forestry Suiling 418.0 4144.6 195.8 1.1 10.1 25.5 15.8 4810.9 bureau Tongbei forestry 565.4 2641.2 587.9 1.3 43.5 3.8 3843.1 Bei’an bureau Hongxing farm 1805.6 166.1 249.7 19.5 0.5 2241.4 Fenghuangshan 199.9 20.1 220 farm Huanyuan farm 32.9 4.7 13.3 6.2 57.1 Wudalia Military farm 77.4 1.1 5.5 1.3 85.3 nchi Yongfeng farm 222.5 1.6 21.5 22.1 22 40.5 330.2 Weishan farm 301.0 119.4 9.3 110.1 539.8 Geqiushan farm 75.3 137.4 1.7 2.4 294.4 511.2 Yinlonghe farm 242.2 284.4 11.1 356.4 894.1 Qixingpao farm 80.6 166 50.1 359.8 656.5 Nenjian Nenjiang farm 150.5 34 40.3 0.2 4 229 g Sishilihe forestry 168.1 24.7 29.8 1.2 5.8 1.2 230.8 farm Total 4364.6 9398 1056.9 142.3 60.3 0.2 6.0 32.2 1259.5 71.9 16392

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(2). Impact of land Acquisition from townships and towns (excluding land for service area and toll gate)

Appendix Table 5-2 Land acquisition areas of towns and townships Dry Rice Vegetable Forestry Residential Fish Old Grass Un-used others Sub-total farmland paddy garden land area pond road

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2. Impact of Temporary Occupied Land of the Main Road Appendix Table 5-3 Temporary Land Acquisition of Main Road (mu) Land Occupied Administrative Title Dry land Forest land Barren land Cuiluan Forestry Bureau 42 10.5 Suiling Forestry Bureau 514.2 Tongbei Forestry Bureau 6.7 6.7 Nenjiang County 299.9 Wudalianchi 0.9 295.8 Bei’an 98.9 Hongxing Farm 722.6 772.2 531.4 694.6

II. Impact of Land Requisition of Link Road 1. Permanent Land Requisition of Link Road Appendix Table 5-4 Impact of Permanent Land Acquisition of Branch Road (mu) Land Occupied Administrative Location Protection Title Vegetable Original Dry land forestry land road land Weishan Farm 2.8 11.9 Wudalianc hi Geqiushan Farm 20.5

Qixingpao Farm 0.6 14.0 Nenjiang Haijiang Township 12.7 1.6

Total 12.7 3.4 1.6 46.4

2. Temporary Land Requisition of Link Road

Appendix Table 5-5 Temporary Land Acquisition for Link Road (mu)

Land Acquisition Location Land title Nenjiang County Haijiang Township Forest Land Barren land

Location Land title 2.8 18.0

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3. Impact to forest Appendix Table 5-6 Quantity of Impacted Forestry Broadleaf tree diameter, quantity Coniferous , diameter, quantity 10<φ< 10<φ<1 Economically profitable wood φ<5 5<φ<10 ф 〉15 φ<5 5<φ<10 ф 〉15 15 5 Willow Poplar Pine Administrative Title Timber Timber Timber Timber Timber Timber Timber Timber Seeding Seeding Seeding wood wood wood wood wood wood wood wood (m2) (m2) (m2) (unit) (unit) (unit) (unit) (unit) (unit) (unit) (unit) (m2) (m2) (m2)

Cuiluan Forestry Bureau 220103 95939 85888 21243 49605 33607 29552 6979 Suiling Forestry Bureau 266548 115475 106762 27381 144654 77292 102926 20080 Tongbei Forestry Bureau 182437 83680 55253 14754 98829 89488 68737 12613 Hongxing Farm 75 980 5579 7344 92 5269 752 11694 Military Base 57 0 106 340 88 Bei’an City 9593 3173 113 Nenjiang 1460 6 12161 3457 Wudalianchi City 19060 4886 1543 Wudalianchi Farm 140 7036 690 Weishan Farm 285 612 Geqiushan Farm 3194 130 2431 Qixingpao Farm 6 11563 3457 1800 7985 Total 688223 312013 260286 103937 293180 205762 212342 51454 1800 7985 0

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Appendix 6 Special Resettlement Plan for Villages of Serious Impacts due to Land Requisition

1. Among the villages impacted due to the land requisition for the highway, there are 9 villages lost over 3% of the farmland because of the permanent use (for details please refer to Table 6-1). The villages over 4% of whose farmland has been requisitioned are identified as the villages of serious impacts due to land requisition. There are 5 villages involved, mainly allocated in Xinglong Township and Xinfa Township of Wudalianchi City. With the guidance of ADB resettlement experts, special site visits and investigation in these 5 villages have been implemented by the entity responsible for drafting the resettlement plan. Via meeting and discussion with the households and village chiefs, the special resettlement plan for villages of serious impacts due to land requisition was installed. Appendix Table 6-1 Important Village Group

Cultivated Proposed Cultivated Popu- Population Affected Site Land per Acquisition land area lation Losing Land ratio Capita Land

Houshenli 8691 956 9.1 261 29 3.0% Haijiang Shenli Township village Nenjiang Qianshenli 4000 496 8.1 130 16 3.3% Nenjiang Changjiang Changjiang 5026 787 6.4 157 25 3.1% Town Village Group 3 Xinghuo 2600 260 10 94 9 3.6% Xinghuo Group 4 Village Xinghuo 6000 603 10 284 29 4.7% Group 1 Xinglong Hongsheng 4086 531 7.7 185 24 4.5% Township Group 4 Wudalianchi Hongsheng Hongsheng 4860 602 8.1 195 24 4.0% village Group 5 Hongsheng 3354 770 4.4 205 47 6.1% Group 3 Xinfa Hexin village 7327 1600 4.6 489 105 6.7% Township

Group 1 2021 390 5.2 74 14 3.7% Chengjiao Jianmin township village Group 2 2041 375 5.4 86.2 16 4.2% Bei’an Beihe village Group 5 3200 380 8.4 138.9 16 4.3% Zhaoguang town Dongfeng Group 8 2700 310 8.7 109.5 13 4.1% village

1. Special resettlement plan for Group 1 of Xinghuo Village, Xinglong Township in Wudalianchi City

2. This group maintains 6000mu of farmland, with a total population of 603. Generally each villager could have nearly 10mu of farmland. Due to the highway, 284mu of farmland of the group will be requisitioned, which takes 4.7% of the total farmland of the group. The major

160 crops of the group are soybeans. In 2008 the average income of the villagers was about 4000yuan. 3. After information exchange and discussion with the village chief, it was clear that due to the alignment of the highway will horizontally cut into the village so that more households of the village will be impacted than in other villages. Fortunately only a small part of the farmland of each impacted households will be requisitioned, the land requisition will not cause a bad financial impact on the households. Based on the actual status of the village, a special resettlement plan is installed as follows: 4. To reduce the impact on the villages in planting due to the horizontal cut of the land requisition, the local land resource authorities in charge of land requisition extended 5m wide along the both sides of the highway. The extended area will be used by the households for cow breeding as a compensation, and even the extended area should be requisitioned land, but the household still maintain the right to use the land. 5. Most of the households commit with cow breeding, and the village has been quite famous for cow breeding. To increase the amount of cows will lead to an increase of income of the households which will balance the impact due to the land requisition. 6. For the households who are willing to continue with farming, they can rent farmland from other villagers or the neighboring farms. The village keeps only a very short distance from the neighboring Huayuan Farm, Fenghuangshan Farm, and Huashan Farm. Before land requisition, there are already some household rent lands from the farms. As long as the households receive land requisition compensation, they can use the money to pay for more rent farmland, and to increase their income.

2. Groups 3, 4, and 5 of Hongsheng Village, Xinglong Township in Wudalianchi City 7. Due to the similarities in location, average land resource, and crops, and also belonging to the same administrative village, these 3 groups will be covered in the same special resettlement plan. 8. After information exchange and discussion with the village chief, it was clear that due to the alignment of the highway will horizontally cut in the village so that more households of the village will be impacted than in other villages. Fortunately only a small part of the farmland of each impacted households will be requisitioned, the land requisition will not cause a bad financial impact on the households. Based on the actual status of the village, a special resettlement plan is installed as follows: 9. Soybeans are the major crops planted by the households. The products are usually collected by agents in the village. However, due to the poor road condition, the agents often offer a price 2-3 cents cheaper than in other areas. As long as the highway construction is finished, the price of soybeans should be increased. The average output of soybeans in the village is about 200kilo per mu. Each mu of land could produce 10yuan more to the households, which means the average income will be increased 70 to 80 Yuan per mu. 10. The village has plenty of labor resource. Income due to labor supply takes a high proportion in the net income of the households. When the highway is ready, it will become easier and faster to work in other areas, which will also increase the income of the households. 11. The village lacks reserve farmland, so no land can be offered to the households whose land has been requisitioned. But the households who are willing to continue with farming can rent farmland from the neighboring Yongfeng Farm and Huayuan Farm for planting. Before land requisition, there are already some households renting lands from the farms. As long as the households receive land requisition compensation, they can use the money to pay for more rental farmland, and to increase their income.

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12. To reduce the impact on the villages in planting due to the horizontal cut of the land requisition, the local land resource authorities in charge of land requisition extended 5m wide along the both sides of the highway. The extended area will be used by the households for cow breeding as a compensation, and even the extended area should be requisitioned land, but the household still main the right to use the land.

3. Hexin Village, Xinfa Township in Wudalianchi City

13. The village maintains a total farmland of 7327mu, with a population of 1600. Each village occupies 4.6mu of farmland. Due to the highway, 489mu of farmland will be requisitioned, which takes 6.7% of the total and leads to 105 villagers completely off from farmland. The village is situated in the suburb area of Wudalianchi City, cycling Wudalianchi Town. Planting and breeding are the main supporting business of the village. 14. After information exchange and discussion with the village chief, it was clear that due to the alignment of the highway will horizontally cut in the village so that more households of the village will be impacted than in other villages. Fortunately only a small part of the farmland of each impacted households will be requisitioned, the land requisition will not cause a bad financial impact on the households. Based on the actual status of the village, a special resettlement plan is installed as follows: 15. Planting only gives a very small contribution to the average income of the villagers. More villagers are committing with breeding of chicken and cows. After receiving land requisition compensation, the households can expand the breeding business to increase their income. 16. As the Heilongjiang provincial area comprehensive price for land requisition is installed, Wudalianchi city also fixes the local area comprehensive price for land requisition. Because of the village’s location is closer to the urban area, so that the price of the land requisitioned in the village is quite favorable: 38.69yuan per square meter, twice of the prices in other areas. In this case the villagers are willing to give their land and to take the land requisition compensation. With the compensation, the villagers can develop breeding business. 17. Due to the advantage of location, the villagers could also commit with labor supply. The village is quite close to the urban area. As long as the highway is finished, the local transportation and tourism businesses will be promoted. There are already some households are working with transportation. The village has also provided trainings and measures to create more possibilities for the households to work in services other than agriculture. 4. 5th Group of Beihe Village, 8th Group of Dongfeng Village, Zhaoguang Town, Bei’an 18. There are 3200 mu cultivated land and 380 population in Beihe village. The cultivated land per capita is 8.4 mu. The project occupied 138.9mu cultivated land. Population who lost all their land is 16 persons. The affected percentage is 4.3%. 8th Group of Dongfeng village has 2700 mu cultivated land and population is 310 persons. The cultivated land per capita is 8.7mu. Land occupied by the project is 109.5mu. The population who lost all their land is 13 persons. The affected percentage is 4.1%. 19. The population and cultivated land area per capita of the two villages are similar and the industry structures of two villages are same. The land occupied by the project only affected few to household. The main reasons are affected households are much but the occupied land of each household is few. Another reason is the cultivated land per capita is more. After improving agriculture technical and increasing the unit production of land, the lost of land can be expanded. The main measures are followings.

○1 The main land is dry land and its irrigation condition isn’t so developed. According technologies such as water saving and developing irrigation, the unit production can be increased. Based on the communication with officials of Zhaoguang Town Government, Town Government will support the two villages to utilize the compensation fund from Collective Land

162 to rehabilitate irrigation facilities and improve irrigation condition. Last unit production and income will be increased.

○2The income from breeding industry of the two village are higher. The households will use land compensation fund supporting increasing investment on. Town Government will carry out technical training for households who carried out breeding industry in order to improve the breeding level and increase side income for rural households.

○3Town Government will organize households and push the labor going out working and increase income from service industry.

5. 2nd Group of Jianmin Village, Chengjiao Township, Bei’an City

20. There are 2041 mu cultivated land and 375 persons totally. The cultivated land per capita is 5.4mu. Occupied land is 86.2mu. The population who lost all their land are 16. The affected percentage is 4.2%. Even the cultivated land per capita isn’t so more but it has an advantage location. So the influence by occupied land is light. The main measures for reviving are listed as followings:

○1 It is near Bei’an city. Households can step into vegetable planting to increase income from land, from the households who have gained benefit from vegetable planting, and it is known that the input for vegetable planting technology is much. Households show that they will put compensation fund from land occupied into vegetable planting. Township Government will support necessary training and engage technical experts for guiding, too.

○2 Engaging in service industry. Fully play the advantage location of Bei’an city and engage in service and labor outputting in Bei’an city. At current, the job such as odd job and temporary job can be found easily. Households can be qualified for these jobs after accepting necessary technical training.

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