Shaanxi Mountain Road Safety Demonstration Project (RRP PRC 46042)

Resettlement Framework (Draft)

May 2015

PRC: Shaanxi Mountain Road Safety Demonstration Project

Prepared by Office of Projects with Foreign Capital of Shaanxi Provincial Transport Department for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 10 July 2014) Currency unit – Yuan (CNY) CNY1.00 = $0.16243 $1.00 = CNY6.1565

ABBREVIATIONS AAOV – Average Annual Output Value ACG – Ankang City Government ACTB – Ankang City Transport Bureau ADB – Asian Development Bank AHs – Affected Households APs – Affected Persons AV – Administrative Village CRO – County Resettlement Office DI – Design Institute DMS – Detailed Measurement Survey DRO – District Resettlement Office FS – Feasibility Study HD – House Demolition HDG – Hanyin District Government HPMO – Hanyin District Project Management Office LA – Land Acquisition LAB – Land and Resources Bureau LAR – Land Acquisition and Resettlement LEF – Land-Expropriated Farmer L&RO – Land & Resources Office MOU – Memorandum of Understanding M&E – Monitoring and Evaluation NDRC – National Development and Reform Commission PADO – Poverty Alleviation and Development office PDRC – Provincial Development and Reform Commission PPTA – Project Preparatory Technical Assistance PRA – Participatory Rural Appraisal PRO – Project Resettlement Office RIB – Resettlement Information Booklet RP – Resettlement Plan SCG – Shangluo City Government SCTB – Shangluo City Transport Bureau SES – Socioeconomic Survey SPS – Safeguards Policy Statement of ADB SPTD – Shaanxi Provincial Transport Department TRO – Township Resettlement Office XCG – Xunyang County Government XPMO – Xunyang County Project Management Office

WEIGHTS AND MEASURES km – kilometer m2 – square meter mu – 666.7 m2

NOTES In this report, "$" refers to US dollars.

This resettlement framework 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. Your attention is directed to the “terms of use” section of this website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

ADB Loan Project (TA-8440)

Shaanxi Mountain Road Safety Demonstration Project (Road Safety Component)

Resettlement Framework

Office of Projects with Foreign Capital of Shaanxi Provincial Transport Department

May 2015

COMMITMENT LETTER

Xunyang County People’s Government applies for the loan to Asian Development Bank for the Xunyang County Component of Shaanxi Mountain Road Safety Demonstration Project. Therefore,the implementation of the project must satisfy the social safeguard policy of ADB.This plan represents a key requirement of ADB, and becomes the basis for the project implementation of land acquisition and demolition as well as relocation and resettlement.The Resettlement Plan adheres to relevant laws and regulations of the People's Republic of China,Shaanxi Province,Ankang City and Xunyang County. In order to better accomplish the relocation and resettlement work, the plan also includes some additional actions and implementation and monitoring arrangement.

Xunyang County People’s Government hereby confirms the content of this report and ensures that the land acquisition, demolition, resettlement, compensation and budget fund of the project are all executed according to the Resettlement Plan. The plan is formulated based on the data of feasibility study report of the project and the preliminary survey on social impacts.The plan will be updated based on detailed design, detailed measurement survey and census of the affected persons.The updated Resettlement Plan should obtain the approval from ADB before the commencement of any land acquisition or demolition,and prior to the award of civil works.

County Magistrate of Xunyang County People’s Government

COMMITMENT LETTER

Hanbin District People’s Government applied for the loan to Asian Development Bank for the Hanbin District component of Shaanxi Mountain Road Safety Demonstration Project.Therefore,the implementation of the project must satisfy the social safeguard policy of ADB.This plan represents a key requirement of ADB, and becomes the basis for the project implementation of land acquisition and demolition as well as relocation and resettlement.The Resettlement Plan adheres to relevant laws and regulations of the People’s Republic of China,Shaanxi Province, Ankang City and Hanbin District and ADB’s Safeguards Policy Statement (SPS 2009) on involuntary resettlement.In order to better accomplish the relocation and resettlement work, the plan also includes some additional actions and implementation and monitoring arrangement.

Hanbin District People’s Government hereby confirms the content of this report and ensures that the land acquisition, demolition, resettlement, compensation and budget fund of the project are all executed according to the Resettlement Plan. The plan is formulated based on the data of feasibility study report and preliminary design of the project and the preliminary survey on social impacts. The plan will be updated based on detailed design, detailed measurement survey and census of the affected persons. The updated Resettlement Plan should obtain the approval from ADB before the commencement of any land acquisition or demolition, and prior to the award of civil works.

District Magistrate of Hanbin District People's Government

GLOSSARY

Affected person (or – Those who are physically displaced household) (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas Compensation – Money or payment in kind to which the people affected are entitled in order to replace the lost asset, resource or income Entitlement – Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base Income restoration – Reestablishing income sources and livelihoods of people affected Resettlement – Rebuilding housing, assets, including productive land, and public infrastructure in another location Resettlement Impact – Loss of physical and non-physical assets, including homes, communities, productive land, income-earning assets and sources, subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms Resettlement Plan – A time-bound action plan with budget setting out resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring and evaluation Vulnerable Group – Distinct groups of people who might suffer disproportionately from resettlement effects, as specified in this plan

CONTENTS 1 PROJECT OVERVIEW AND BACKGROUND ...... 1

1.1 PROJECT BACKGROUND ...... 1 1.2 PREPARATION OF RPS AND RF ...... 6 1.3 SCOPE OF THE RURAL ROAD SAFETY IMPROVEMENT SUB-PROJECT AND RF ...... 6

2 SOCIAL AND ECONOMIC PROFILE OF THE PROJECT AREA ...... 8

2.1 SOCIOECONOMIC PROFILE OF ANKANG CITY AND SHANGLUO CITY ...... 8 2.2 SOCIOECONOMIC PROFILE OF PROJECT COUNTY AND DISTRICT ...... 8 2.3 SOCIOECONOMIC PROFILE OF PROJECT AFFECTED AREA ...... 9

3 LEGAL FRAMEWORK AND POLICIES ...... 11

3.1 OVERVIEW OF RELEVANT LAWS, REGULATIONS AND POLICIES ...... 11 3.2 THE PRC’S LAWS AND REGULATIONS ON LAR ...... 11 3.3 RELEVANT POLICIES OF SHAANXI PROVINCE AND XUNYANG COUNTY ...... 13 3.4 ADB’S POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ...... 13

4 COMPENSATION PRINCIPLE AND ENTITLEMENT ...... 16

4.1 RESETTLEMENT PRINCIPLES ...... 16 4.2 COMPENSATION RATE FOR PERMANENT LAND ACQUISITION ...... 16 4.3 COMPENSATION RATE FOR TEMPORARY LAND OCCUPATION ...... 17 4.4 COMPENSATION RATE FOR HOUSE DEMOLITION ...... 17 4.5 COMPENSATION FOR GROUND ATTACHMENTS AND INFRASTRUCTURE ...... 19 4.6 COMPENSATION FOR YOUNG CROPS ...... 19 4.7 ENTITLEMENT MATRIX ...... 19

5 RESETTLEMENT AND INCOME RESTORATION MEASURES ...... 22

6 INSTITUTIONAL ARRANGEMENTS ...... 24

6.1 INSTITUTIONAL ARRANGEMENTS ...... 24

7 RESETTLEMENT BUDGET ...... 26

7.1 RESETTLEMENT BUDGET ...... 26 7.2 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 26

8 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 28

8.1 PUBLIC PARTICIPATION ...... 28 8.2 GRIEVANCES AND REDRESS ...... 28

9 IMPLEMENTATION OF RP ...... 31

10 MONITORING, EVALUATION AND REPORT ...... 32

11 PROCEDURAL GUIDELINES FOR RP PREPARATION AND DUE DILIGENCE ...... 33

1 Project Overview and Background

1.1 Project Background

1. Shaanxi Province is one of the lesser developed provinces with per capita GDP, per capita urban income and per capita rural income at about 100%, 84% and 73% of the national averages in 2012, ranking 14th, 18th and 26th respectively among the 31 administrative provinces and regions in PRC. Fifty of Shaanxi’s 107 counties have been officially designated national poverty counties.

2. The project is located in Ankang and Shangluo, two prefecture-level cities of southern Qinba Mountain of Shaanxi. Qinba Mountain is one of the 11 poorest regions targeted for concentrated interventions under the 2011−2020 poverty reduction strategy of PRC Government. The proposed project will benefit three counties (Xunyang County, Hanyin District and Shangnan County), all of which have been designated as national poverty counties since the 1990s. In 2012, Shaanxi province raised the poverty line to CNY 2,785, which is higher than the national poverty line of CNY 2,300. Based on this, the overall poverty incidence of Shaanxi is 30%, with the ratios of the project county/district of Xunyang, Hanyin and Shangnan being 40%, 38.6% and 34.3% respectively.

3. Lack of adequate transport accessibility and a poor quality of the road network are some of the major constraints on the social and economic development of the region.

4. The primary objectives of the road rehabilitation components are threefold: 1) to upgrade network capacity for an expanding transport volume in the area, and 2) to provide all-weather access to the village and county roads that connect to the trunk roads, and 3) to improve the road safety condition of these rehabilitated roads and an additional 660 km of rural roads.

5. The Project will comprise four components. (i) Component 1: Rehabilitation of 187.05 km arterial highways, including 60.25 km of S102 Xunyang – Xiaohe Highway, 34.39 of G316 section from Xunyang – Ankang City Center Highway and 92.41 km S224 Shangnan County Chengguan Town – boundary of Shaanxi and Hubei provinces; (ii) Component 2: Rehabilitation of 8 rural roads with the total distance of 139.656km, including three township roads in Xunyang County, Hanyin District and Shangnan County (one each county/district) and five village roads in Xunyang County (three) and Hanyin District (two); (iii) Component 3: Improvement of the road safety of components 1 and 2 and other road sections of about 660km; This Framework covers only the proposed road safety upgrades to the 660 km of rural roads; and (iv) Component 4: Capability building and agency development, with the focus on the systematic capability of Shaanxi Provincial Transport Department related to road safety.

6. Table 1-1 listed the 11 roads for both rehabilitation and safety improvement and Table 1-2 has the information of the 25 rural roads for safety improvement only.

Table 1-1: Overview of Rehabilitation and Safety Improvement Roads of Shaanxi Mountain Road Safety Demonstration Project No. of Class No. of Total The poor County/ Road Towns/ No. and villages population population district component townships Length benefited benefited benefited traversed I Ankang City 8 40 37,250 11,908 Xunyang-Xiaohe Highway (S102 Class II 1 4 14 15,823 3,660 provincial trunk 60.25 km road) Shuhe-Xiaohe Class IV 2 Highway (County 2 13 19,806 2,445 38.405km trunk road) Xunyang Lijiaba - Baiguo Class IV 3 1 1 1,046 560 village road 7.879km Donggou - Luojia Class IV 4 1 1 1,083 606 village road 7.253km Yangpo - Class IV 5 Liangheguan 1 1 4,035 1,809 16.618km village road Xunyang Xunyang – Class II 6 4 8 7,205 2,387 & Hanyin Ankang (G316) 34.39km Yanba - Class IV 7 Dongqiao 2 4 3,792 1,438 10.697km township highway Zaobao - Class IV 8 Hanyin Yousheng Village 1 1 700 261 4.157km road Zaobao - Class IV 9 Wujiashan village 1 1 803 296 9.335 km road II Shangluo City 6 19 25,468 9,287 Shangnan - boundary of Class II 10 5 13 18,305 6,605 Shaanxi and 92.41 km Shangnan Hubei (224) County Xianghe - Class IV 11 Shuigou township 2 7 8,471 3,083 45.312km highway Total 11 section 326.7 14 59 62,718 21,195 Sources: Shaanxi Provincial Project PMO and Design institute

Table 1-2: Basic Information of 25 Rural Roads for Safety Improvement District/ Length Total budget No. Name of road County (km) (CNY) X213 Section from Hengkou Town to Yeping 1 Town 43.00 7,374,695 X210 Section from Wuci Intersection to 2 Hanyin District Dongzhen Village 62.67 10,397,177 3 Y103 Section from Zhangtan to Qingtao Village 40.11 7,521,895 4 Y201 Section from Aijiahe to Baohe Bridge 11.50 2,210,914

District/ Length Total budget No. Name of road County (km) (CNY) Y202 Section from Longtangou to Gongjin 5 Village 9.70 1,845,024 Subtotal 166.98 29349705 6 X304 50.56 6,479,917 7 Y201 Section from Shagoukou to Liulitan 20.56 3,789,313 Y203 Section from Bailiu Town to Bailiu 8 Gerocomium 25.56 3,276,391 9 Y206 Section from North Xiaohe to Shiliwa 15.81 2,707,764 10 Y212 Section from Mogou to Yangshan Village 20.20 3,427,869 Y301 Section from Hongjun Town to Dongchuan 11 Village 10.50 1,951,115 12 Y302 Section from Liangheguan to Sanhe 10.95 1,185,664 Xunyang Y303 Section from Shuanghe Bridge to County 13 Guochang Village 24.56 1,355,086 Y304 Section from Ganxiqiaotou to Maping 14 Town 22.10 2,594,237 15 Y305 Section from Lvhe Bridge to Lijia Dam 5.84 1,367,964 16 Y308 Section from Pingding to Pailou 9.38 741,797 17 Y311 Section from Shenhe to Pingan 20.90 2,905,951 Y312 Section from Dongchuan estuary to 18 Shengjia 9.95 1,496,754 19 Y313 Section from Zongxi to Wuwang 8.84 983,163 Subtotal 255.71 63,612,690 20 X313 Section from Bailang Town to Sizhuangzi 23.50 3,205,404 X316 Section from Zhaochuan Town to Bailuchu 21 Village 39.10 5,549,461 22 Y206 Section from Liangjiafen to Shizhuhekou 23.00 3,521,203 Shangnan 23 Y335 Section from Pohekou to Wenhuaping 21.42 3,905,723 County Y338 Section from Taijihe Town to Xianghe 24 Town 30.95 5,206,989 Y339 Section from Xianghe Town to Zijingguan 25 Town 9.45 1,556,613 Subtotal 147.42 22,945,393

Total 150,170,773 570.11 Sources: Shaanxi Provincial Project PMO and Design institute

7. Figure 1, 2 and 3 show the project roads distribution.

Figure 1: Ankang City (S102, G316) and Rural Roads

Figure 2: Shaanxi Mountain Road Safety Demonstration Project (Shangnan Highway)

Figure 3: Road Safety Component Roads

1.2 Preparation of RPs and RF

8. Financed by ADB, the project needs preparation of Resettlement Plan (RP) before project construction, based on the standard requirements of ADB of the loan-aided project. On April 8-11, 2014, ADB Project Preparation Technical Inception Mission (short for “Inception Mission”) visited Xi’an and determined the content, principle and requirement of project Resettlement Plans. The “Inception Mission” and SPTD (the executing agency) confirmed: The project RPs include the following: (i) Formulating three independent RPs for trunk highway and township highway by units of the 3 project implementation counties and district. One RP for each county/district is required to cover its trunk highways and township roads; (ii) Formulating independent RPs for village roads by county (district). Because no village road upgrading are included in Shangnan County, the RPs for village roads only involves Xunyang County and Hanyin District; and (iii) A resettlement framework (RF) for road safety subproject.

1.3 Scope of the Rural Road Safety Improvement Sub-project and RF

9. Road safety improvement is the main output of the whole project. For component 1 and 2, the road safety improvement is integrated into road rehabilitation, five separate RPs have been prepared to deal with the potential resettlement impact caused.

10. For the remaining roads with only road safety improvement, currently 25 rural roads in total length of 570 km are identified (details see Table 1-2). The detailed scheme for construction content is still undergoing, no accurate land acquisition and house demolition information are available. Overall, those roads will not include any major widening or realignment. This is not expected to lead to resettlement. However, to deal with any unexpected LAR impacts this RF is prepared to guide assessment of LAR impacts and wherever required developing appropriate safeguards measures including preparing RPs.

11. Prior to undertaking the road safety improvement, the SPPMO through the respective county/district PMOs will screen the proposed roads for potential LAR impacts and submit the screening outcomes to the ADB for review and approval. If the screening process identifies specific LAR impacts, a RP appropriate to the LAR impacts will be prepared and submitted to the ADB for review and approval.

12. No sample RPs are prepared for this RF as there are already 5 RPs have been prepared for the other two components of the project that will result in LAR. On advise of ADB, a due-diligence report (Appendix 1) has been prepared that indicates implementation of road safety measures on 25 roads will not result in and land acquisition and resettlement.

13. Project PMO will ensure that during project implementation, the LAR impacts of the road safety components are monitored and reported. PMO will also ensure that these reports are submitted to the ADB as part of PPMS reporting. On completion of road safety component, the component will be audited and an audit report indicating no LAR impacts for the component will be submitted to the ADB. If any LAR impacts are identified that have remained unresolved, project EA will ensure that corrective action plan is prepared and implemented.

2 Social and Economic Profile of the Project Area

14. The sub-project is located in Hanyin District and Xunyang County of Ankang City and Shangnan County of Shangluo City.

2.1 Socioeconomic Profile of Ankang City and Shangluo City

15. Located in the southeast of Shaanxi Province, Ankang City is at the junction of Sichuan, Shaanxi, Hubei and Chonqing provinces. Bounded by Han River, Ankang City is divided into two regions, Qinling Mountain area in the north and Daba Mountain area in the south. With Han River, Chihe River, Yuehe River as the boundary of Qinling Mountains and Daba Mountain, its landform is characterized by towering high mountains in north and south and basin valley in the middle. Ankang City administers one district and nine counties, totaling 161 towns, 1,634 villages and 16,386 village groups. Ankang has a total area of 23,534.5 km2 and a total population of 2,633,600 (Changhzurenkou, 1 including floating 2 in population but excluding floating-out population) with an urban population of 950,000 (36%). In 2013, it achieved GDP of CNY 60.455 billion, with a growth of 13.4% compared to 2012. Therein, the added values of primary, secondary, and tertiary industries amounted to CNY 9.057 billion, CNY 32.140 billion and CNY 19.258 billion respectively. Per capita GDP reached CNY 22,938, an increase of 13.3% over 2012. Annual urban per capita disposable income was CNY 22,533, an increase of 11.0% from 2012. Rural per capita net income was CNY 6,624. The registered unemployment rate in urban area was 3.3%, and the overall level of consumer price increased by 2.7% in 2013.

16. Shangluo City of Shaanxi Province is located at the southern foot of east section of Qinling Mountains and at the junction of three provinces of Hubei, Henan and Shaanxi. It is named after Shangshan Mountain and Luoshui River within its territory. Shangluo County administered 1 district and 6 counties, totaling 163 towns, 912 villages and an area of 19,300 km2 and a population of 2,427,400. In 2013, Shangluo City achieved the regional GDP of CNY 51.088 billion, increasing by 12.6% compared with that of last year, which is 1.6% higher than the average growth of Shaanxi Province. The general financial revenue is CNY 3.97 billion, of which the local financial revenue is CNY 2.568 billion, respectively increasing by 17.7% and 19.4% compared to previous years. The urban per capita disposable income is CNY 22,257, and rural per capita net income is CNY 6,223, with year-on-year growth of 11.3% and 14.7% respectively; the registered urban unemployment rate is controlled within 3.4%; while the consumer price index is controlled within 2.6%.

2.2 Socioeconomic profile of project County and District

17. Xunyang County is one of the nine counties of Ankang City, located at the southeast of Shaanxi Province, and the east section of Qinling-Daba Mountains, with Han River running through. The county is situated in the junction of Han River and Xunhe River. Covering a total area of 3,554 km2, the county administers 22 towns and 318 villages (communities), with total population of 427,300. Its economic and social development is at the preliminary stage of industrialization. In 2013, it achieved GDP of CNY 10 billion, increasing by 13.5% compared to 2012. The total investment in fixed assets was CNY 7.7 billion, an increase of 27%; the total retail sales of consumer goods was CNY 2.314 billion, up by 13.52%; the general financial

1 “Changzhurenkou”: The regular population that lives in the area, excluding floating-out population but including floating-in population. 2 Floating population are those who work in the place over 6 months a year but who’s “Hukou” is registered in another place.

revenue was CNY 1.634 billion, an increase of 8.78%, the general local budget revenue was CNY 464 million, up by 21.51% in 2013. The industries above a designated scale achieved the output value of CNY 10.589 billion, an increase of 27.5%; the urban per capita annual disposable income was CNY 22,741, an increase of 10.3%; the rural per capita net income increased by 14.3% to CNY 6,757.

18. Hanyin District is the capital of Ankang prefecture level city located at the southeast of Shaanxi province. Its economic and social development is at the preliminary stage of industrialization. Covering a total area of 3,652 km2, Hanyin District administers 22 towns and 318 villages (communities). In 2013, Hanyin District achieved GDP of CNY 16.303 billion, with year-on-year growth of 14.6%. Therein, the added value of primary industry amounted to CNY 1.92 billion, increasing by 5.8%; the added value of secondary industry amounted to CNY 6.89 billion, increasing by 21.9%; the added value of tertiary industry amounted to CNY 7.493 billion, increasing by 11.4%. The added values of primary, secondary and tertiary industries respectively accounted for 11.8%, 42.3% and 45.9% in GDP. The per capita total output value reached CNY 18,722, increasing by 14.5% than that of last year. The total registered population of the whole district reached 1.0193 million, including agricultural population of 794,100 and non-agricultural population of 225,200. The urban per capita total annual income was CNY 22,115, and the urban per capita consumption expenditure was CNY 15,447; the rural per capita net income was CNY 5,920, and per capita living expenditure was CNY 4,839.

19. Shangnan County is one of the 6 counties of Shangluo City, located at the junction of Hubei, Henan and Shaanxi Provinces, is the southeast portal of Shaanxi. It covers an area of 2307km2. The County administers 13 towns, totaling 164 villages and three communities, with the population of 239,000, of which 209,400 is agricultural3 population. There is cultivated land of 195,000 mu, with 0.9 mu per capita. Shangnan County has a long history and abounds in resources of biodiversity, minerals, tourism and hydro energy. The forest coverage rate is 62.5%. It has been successively named as “Home of Chinese Tea” and “Top 100 Counties of Tea Produce”; it has 1,192 kinds of herb medicinal plants and is reputed as “natural herb medicine hub”. Shangnan is located at Qinling-Bashan Mountains. The basic geographical landform in Shangnan is shallow mountains and hills. Due to poor transport conditions, its social and economic development is restricted. Shangnan is national identified poverty-stricken county. In 2013, it achieved GDP of CNY 5.4 billion, increasing by 12.8% compared to 2012. The total investment in fixed assets was CNY 5.8 billion, an increase of 27.2%; the total retail sales of consumer goods was CNY 1.1 billion, up by 13.8%; the general financial revenue and local financial revenue was CNY 403 million, an increase of 7.2 %, the general local budget revenue was CNY 291 million, up by 10.4% in 2013. The urban per capita annual disposable income was CNY 22,307, an increase of 11.2%; the rural per capita net income increase by 15.8% to CNY 6,400.

2.3 Socioeconomic Profile of Project Affected Area

3 Agricultural and non-agricultural population in the traditional statistics population refers to the “Hukou system”. Those who’s “Hukou” is registered in rural villages including floating-out population short term (less than 6 months a year) or long term (over 6 months a year) are all categorized as agricultural population regardless whether they still engaged in agricultural activities or not. Those who’s “Hukou” registered in urban communities are all categorized as non-agricultural population. Traditionally non-agricultural population refers to urban population. But as it exclude floating in population (mainly from the rural village), the actual urban population is larger than the non-agriculture population in the statistics yearbook.

20. There is no survey conducted for APs from the 25 rural road for road safety due to no AHs identified yet. But in the same project county/district, for the 3 trunk roads, 3 township roads and 5 village roads with integrated road safety improvement with road rehabilitation, total 804 AHs surveyed. Of the surveyed households, per household cultivated land is 5.1, 7.5 and 4.1 mu in Hanyin, Xunyang and Shangnan respectively and per capita cultivated land is 1.23, 1.88 and 1.1 mu respectively. The cultivated land mainly refers to plain dryland and sloping dryland and the major crops are corn and wheat, with yearly net return of about CNY 500-900 per mu.

21. The field household survey and group discussion found that over 80% of the household income is derived from non-farming and agricultural income contributed less than 20%. Cultivated land rental is about CNY 200-300 per mu/year where convenient transport and irrigation is available.

3 Legal Framework and Policies

3.1 Overview of Relevant Laws, Regulations and Policies

22. The resettlement policies of this project are based on ADB’s policies and on the laws and regulations of the People’s Republic of China (PRC). These are as follows.

23. The relevant ADB policy is:  ADB Safeguard Policy Statement (2009), Safeguard requirement 2: Involuntary Resettlement

3.2 The PRC’s Laws and Regulations on LAR

24. The PRC relevant laws and regulations include the following:

(1) The Land Administration Law of the People’s Republic of China

25. (Amended at the Eleventh Session of the Standing Committee of the Tenth National People’s Congress on August 28, 2004; and effective as of then)

26. Main contents: formulations on land ownership, overall land use plan, cultivated land protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and manner of relocation of relocated people.

(2) Regulations on the Protection of Basic Cultivated Land

27. (No.257 Decree of the State Council of The People’s Republic of China on December 27, 1998)

28. Main contents: in line with Agriculture Law of the People’s Republic of China and the Land Administration Law of the People’s Republic of China, concrete formulations for the country’s protection of basic cultivated land, including delimitation, protection, supervision and management, legal responsibility, etc.

(3) Interim Regulations on Cultivated Land Use Tax of the People’s Republic of China

29. (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008)

30. Main contents: formulations about tax contribution standard and contribution range of state construction occupied cultivated land

(4) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28)

31. Main contents: In order to use the land properly, to protect the legal rights of the farmers whose land is expropriated, to maintain social stability, and to perfect the land expropriation and resident relocation system, the decision puts forward the guiding principle and way to perfect the compensation of land expropriation. The decision requires all the county, city and province governments to take effective measures to ensure that farmers’ living standards will not

decrease after their land is expropriated, and that according to laws in force, the land compensation, relocation compensation, ground ancillary facilities and young crop compensation are paid in full and in time. If after the payment of land compensation and relocation compensation in accordance with the laws in force, the farmers whose land has been expropriated cannot maintain their original living standard and their social safeguards cannot be paid, the province, autonomous region and/or municipality government should agree to provide further relocation compensation. If the sum of land compensation and relocation compensation reaches the legal upper limit, but the farmers whose land has been expropriated cannot maintain their previous living standard, the local people’s government can offer subsidy with the state-owned land income. The government of province, autonomous region and/or municipality should work out and promulgate the standard of output value or price of land. The land expropriation should be the same price for the same land. National key construction projects should incorporate the expense of land expropriation into its budget.

(5) Notice on the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of China (November 3, 2004, Guotuzifa [2004] No. 238)

32. The main contents: to put forward how to carry through The Decision of the State Council on Deepening the Reform and Strictly Enforcing Land Administration especially aiming at some problems during the land expropriation compensation and relocation system. There are two aspects: (i) To formulate unified annual output value standard. The provincial land and resources administration along with relevant agencies woks out the minimum unified annual output value of every county in the province, then announce and carry out it after the approval of the province government. The workout of unified annual output value standard should consider the type and quality of expropriated land, the investment on the land, the price of agricultural products, the grade of land, and so on. (ii) To affirm unified annual output value multipliers. The unified annual output value times of land compensation and resettlement subsidy should ensure the farmers whose land is expropriated retain a standard no lower than before and be worked out within the legal limit. According to the legal unified annual output value times, if the land compensation and resettlement subsidy couldn't ensure that the peasants whose land is expropriated can maintain the original living level or pay for their social security, the times can be increased after the approval of provincial government. If the sum of land compensation and resettlement subsidy is 30 times as the unified annual output value, the farmers whose land is expropriated couldn't retain the original living standard, the local government can provide subsidy from the state-owned land income. If the basic farmland is expropriated by the legal approval, the land compensation should be carried out according to the highest compensation standard announced by the local government.

(6) Real Property Right Law of the People’s Republic of China (Order of the People’s Republic of China No. 62, in effect as of October 1, 2007)

33. Main contents: In accordance with the Constitution Law, the present Law is enacted with a view to maintaining the basic economic system of the state, protecting the socialist market economic order, clearly defining the attribution of the property, utilization of property, and safeguarding the real right of the right holder. The civil relationships incurred from the attribution and utilization of the property shall be governed by the present Law.

3.3 Relevant Policies of Shaanxi Province and Xunyang County

(1) Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People’s Congress on November 30, 1999, and effective on January 1, 2000)

34. Main contents: in line with the Land Administration Law of the People’s Republic of China, and the reality in Shaanxi Province, concrete formulations on the land administration in Shaanxi Province.

(2) Regulations on Land Acquisition for Construction Project of Shaanxi Province. No.78 document issued and effective as of January 8, 2002 by Shaanxi Provincial People’s Government

35. Main contents: to regulate the land acquisition in Shaanxi Province. According to The Land Administration Law of the People’s Republic of China and Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province, the regulations put forward the principal and method for Shaanxi Province construction projects to protect, explore and use land reasonably, and to guarantee construction land environment and to balance the land use and the land reclaim.

(3) Notice on the Average Standard of Unified Annual Output Value and Section Comprehensive Land Price on Land Acquisition in Shaanxi Province [No. 36 Shaanzhengbanfa (2010)]

36. Main contents: standardize the compensation criteria for unified land acquisition in Shaanxi, and make correction for the policies on different price of the same land, imbalance of the regions and low compensation criteria during land acquisition.

(4) Supplementary Notice on Related Issues on the Center of Ankang City Construction Land Acquisition and Demolition and Farmers Affected by Land Acquisition Old-age Insurance (An Zheng Fa (2009) No. 15)

37. Main contents: to regulate the procedure of construction land acquisition, compensation standard of land acquisition and ground attachment, compensation standard of demolition and relocation, resettlement and farmers affected by land acquisition old-age insurance in the center Ankang City, etc.

3.4 ADB’s Policy Requirements on Involuntary Resettlement

38. ADB involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary.

39. The objectives of the policy: To avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at

least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups.

40. The basic principle include: (i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. (iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.

(ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. (xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

4 Compensation Principle and Entitlement

4.1 Resettlement Principles

41. The principles for compensation and entitlement of the Project have been developed in accordance with the regulations and policies of the PRC and ADB, with the aim of ensuring that APs obtain sufficient compensation based on replacement cost and assistance so that their production and livelihoods are at least restored to pre-project levels. Table 4-1 presents the resettlement principles.

Table 4-1: Resettlement Principles of the Project No. Principle 1 Involuntary resettlement should be avoided where feasible. 2 The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project. The rate of compensation for acquired housing, land and other assets will be calculated at full replacement costs. 3 The APs are given compensation in full replacement cost and assistance in resettlement whether legal title is available or not. 4 If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land. 5 The IA will ensure that APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the RP. 6 The IA will ensure that no physical displacement or economic displacement will occur until (i) compensation at full replacement cost has been paid to each AP for project components or sections that are ready to be constructed; (ii) other entitlements listed in the RP have been provided to APs; and (iii) a comprehensive income and livelihood rehabilitation program, supported by an adequate budget, is in place to help APs improve, or at least restore, their incomes and livelihoods. 7 Vulnerable groups are provided special assistance or treatment so that they lead a better life, and all APs should have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. 8 The resettlement plan should combine with the overall planning of county/ city/ district. 9 If feasible, changing from “agricultural to non-agricultural” status can be provided to LEF on a voluntary basis. 10 All resettlement cost is included in the project budget and sufficient to cover all affected aspects. The fund needs to be paid in time. 11 The IA and an external monitoring agency will monitor and measure the progress of implementation of the RP and will prepare monitoring reports to ensure that the implementation of the RP has produced the desired outcomes.

4.2 Compensation Rate for Permanent Land Acquisition

42. According to the Shaanxi Land Acquisition Policy (Shaan Zheng Ban Fa [2010] No.36)， in the project district/county Hanyin and Xunyang area, the unified AAOV of irrigated land is CNY1,197, and the compensation multiple is 25, and therefore compensation standard is CNY 29,928 per mu. However, in the Supplementary Notice on Land Acquisition and Demolition for Ankang Central City Construction and Land-requisitioned Farmers’ Endowment Insurance (An Zheng Fa [2009] No.15), the compensation standard (including compensation for land and resettlement subsidy) for paddy increased to CNY60,000, cultivated land (dryland) has increased to CNY 54,000 per mu. In order to benefit the affected households, this RP takes the compensation policy of Ankang city (An Zheng Fa [2009] No.15) as the resettlement policy basis

to employ the higher compensation standard (CNY 54,000 vs CNY 29,928) and it can be implemented after the approval of local people’s government.

43. For Shangnan in Shangluo City, the unified AAOV of irrigated land is CNY1,137, and the compensation multiple is 21, and therefore compensation standard is CNY 23,883 per mu. However, in the Implementation Plan for Land Acquisition, Demolition and Environment Protection for Shangnan Section of the Second Line of Nanjing-Xi’an Railway (Shang Zheng Ban Fa [2012] No.97), the compensation standard (including compensation for land and resettlement subsidy) for cultivated land (dryland) has increased to CNY 25,000 per mu. In order to benefit the affected households, this RP takes the compensation policy of Shangluo city (Shang Zheng Ban Fa [2012] No.97) as the resettlement policy basis to employ the higher compensation standard (CNY 25,000 vs CNY 23,883) and it can be implemented after the approval of local people’s government.

44. The compensation for homestead adopts 90% of the plain dryland, namely CNY48,6000 in Hanyin and Xunyang of Ankang City and 22,500 in Shangnan County of Shangluo City.

45. Table 4-2 has summarized the compensation standard for land acquisition of this RP by land category.

Table 4-2: Compensation Standard for the Project Land Unit (CNY/mu) Land category Hanyin Xunyang Shangnan* Paddy field 60,000 60,000 N.a Plain dryland 54,000 54,000 25,000 Sloping dryland 45,000 45,000 20,000 Homestead 48,600 48,600 22,500 Garden/Forest land 22,500 22,5000 5000 Barren land4 No compensation * Shangnan belongs to Shangluo prefecture locates more north of the Qinba mountain where soil is poorer, climate is dryer and the overall economic situation is poorer than Ankang prefecture.

4.3 Compensation Rate for Temporary Land Occupation

46. The project design scheme does not anticipate any large-scale temporary land occupation. In case of temporary land occupation, compensation will be paid to the APs annually based on the young crop compensation standard in this RP and full recovering of land to its previous use.

4.4 Compensation Rate for House Demolition

47. This component is not likely to have any house demolition anticipated. In case there is any, the compensation for all houses demolished will follow the following principles. (i) Full replacement costs without depreciation: House demolition will be compensated at replacement costs. Table 6-3 has the detailed cost estimations

4 Most of such land acquired will be the slope sides of the already existing roads. These slope sides are mountainous, rocky and of poor quality soil and have no economic value for the local peoples.Village collective has the ownership of the land. Only a few mu owned by individual households that remains unused. Consultations and negotiations with the village collectives have been undertaken that the land is non-productive and will not result in the loss of income. Land rights will remain with the village collective and the road will remain village collective asset. These consultations indicate that the villages will benefit from the all-weather land and will help improve their incomes and livelihood and no compensation will be paid for this barren land. It is discussed many times from the initial candidate road listing to preliminary design to RP survey. Villagers clearly understand about the project impact and benefits.

based on the local house construction practice by type. The affected persons shall receive full replacement price without depreciation for the original house. Meanwhile, the affected people can use the building materials of the original house free of charge/cost. (ii) Various voluntary replacement choices available: The affected household can choose scattered settlement by providing similar condition of individual housing site, or choose concentrated settlement by participating in new rural construction scheme or other planning construction projects of the government, or self-settlement by using cash compensation. (iii) No demolition prior to new house ready/or agreement on new house plot/ apartment units signed: No house demolition will commence prior to the new house constructed or transition house arranged. Transition period should not over 6 months. The affected households will obtain transition compensation prior to moving to the new house. In case of some household facing difficulties of moving, village committee and the PMO will provide assistance of transport. For those household facing difficulties to find transition house, the village committee and PMO will provide assistance in renting.

48. The compensation base price adopted in this plan is listed in Table 4-3. It has been discussed with the affected people and local PMO and matches the current local market price of replacement. The housing land compensation will be distributed prior to demolition, and the housing site shall be arranged within the same village group or village as much as possible. The location selection and allocation details will be arranged after a villager representative conference organized by village committee. The “three supplies and one leveling” for the homestead will be carried out by the project construction unit, and the expense is included in construction budget.

Table 4-3: Compensation Standard for House Demolition Base Type Structure type Unit price Remark (CNY) Brick-concrete CNY /m2 1000 The compensation for the house is 2 Brick-timber CNY /m 800 determined based Earth-wood CNY /m2 400 on market price Compensation evaluation (by a for house certified appraiser) Makeshift house CNY /m2 200 but not less than the proposed base price. CNY1000 for a household with CNY housing loss over Moving subsidy 1000 2 /time 15 m and CNY600 for house loss less 2 than 15 m . Other subsidy Transitional period for house is six months. In CNY / case of time Transition subsidy 2 4 month/m exceeding, the actual time will be counted.

Base Type Structure type Unit price Remark (CNY) Signing Empty and hand agreement CNY /HH 4000 over the house in 20 days Early Signing Empty and hand moving agreement CNY /HH 2000 over the house reward in 30 days Signing Empty and hand agreement CNY /HH 1000 over the house in 40 days

4.5 Compensation for Ground Attachments and Infrastructure

49. The compensation standard for the ground attachment facilities and infrastructure of the project is determined based on the principle of “replacement price”, shown in Table 4-4.

Table 4-4: Compensation Standard for Ground Attachments and Infrastructure Compens Item Unit ation standard Pig, sheep and cattle fence CNY/m2 220 Brick fence CNY/m3 400 Soil fence CNY/m3 120 Toilet Brick single/ each 600 Tomb Brick single (CNY/tomb) 1200 Concrete terrace CNY/m2 40 Water well CNY/m3 400 Fruit bearing (CNY/tree) 60-300 Fruit tree Not fruit bearing （CNY/tree) 10-30 Timber tree DBH of over 10cm (CNY/tree) 50-200 Bamboo m2 40 Sources: Hanyin District, Xunyang and Shangnan County Government

4.6 Compensation for Young Crops

50. The compensation for young crops is CNY 1,200, which is calculated based on the article 29 of Measures for Implementation of The Law of Land Administration of the People’s Republic of China in Shaanxi, and unified annual output value of the project area.

4.7 Entitlement Matrix

51. The entitlement matrix has been established in accordance with the applicable policies in this chapter.

Table 4-5: Entitlement Matrix Entitled Type of Impact Degree of Impact Entitlement Compensation rates persons Compensation of LA includes land compensation fee, resettlement subsidies to affected village and then to APs from village: In the case of limited amount of land The compensation standards for LA are acquisition in a village, and the village has established in Table 4-2 reserved land to be allocated to APs, the The compensation standard for young crops compensation fee will be reserved by the is CNY1200 per mu. village for village infrastructure

improvement or maintenance. to be identified The proportion of LA compensation In the case where there is no reserved during All affected distribution to APs depends on agreement in Permanent LA village land to redistribute to APs, implementation people each village. Two factors affect the compensation will be proportionally design proportion: 1) the previous percentage distributed to APs based on an practiced for other project taken land from agreement made by village meeting. the village if any to ensure consistence and Compensation for young crops will be equality paid to owners directly. 2) Whether there is a need of village facility The project will make efforts to avoid repair agreed by all APs. acquiring land while standing crops are ready for harvesting and if unavoidable prior notice will be given and consultations will be done with the owners. Temporary land occupation fee will be paid to land owners yearly. The duration cannot be over two years. In any case occupation period need to be extended, To be identified negotiation with owners in advance Temporary land during required. CNY1300 a year in Hanyin and Xunyang, APs occupation implementation Land restoration fee will be paid to those 1137 for Shangnan. design who are responsible for restoration. After completion of 2 years, temporarily occupied land will be restored by the contractors to the original quality and will be handed back to the land owners. Residential To be identified to be identified Cash compensation including market The compensation standard is established in housing during during price of house plot and house at Tables 4-3.

Entitled Type of Impact Degree of Impact Entitlement Compensation rates persons demolition implementation construction replacement cost will be paid to AHs The affected households will also receive design directly; movement subsidy in lump sum of AHs are provided various choices of CNY1000/HH. house relocation. If the AH facing Transition subsidy is CNY4/m2 monthly in difficulties to buy similar house plot with maximum 6 months. the compensation rate, the local township government has responsibility to provided one without additional costs to AH. Moving subsidy and transition subsidy will paid to AHs in lump sum directly; All will be compensated at replacement cost, and paid directly to the proprietors. Ground Compensation standard is established in Affected public facilities will be attachments Table 6-4. Proprietors reconstructed by the owner according to and public Special facilities will be negotiated case by the original size, standard and function. facilities case Cost is included in the resettlement budget.

5 Resettlement and Income Restoration Measures

52. The main content of rural road safety component is to add or improve road safety facilities with no major widening, realignment and new construction sections planned. Therefore there is no large scale land acquisition anticipated. The output is unlikely to result in any house or structure demolition. The rehabilitation measures, if required, will be selected by each individual household. The overall scheme is as follows:

(1) Cash compensation and distribution

53. The affected villages/village groups will be compensated in cash based on the standards discussed in Section 4. The land compensation distribution from village to AP has two scenarios: 1) If the land acquisition is a relatively large amount and the village has not enough reserved land to be allocated to APs, which is common in the project area, 100% of the compensation will be distributed to APs directly. 2) If the land acquisition amount is small and the village has enough reserved land (e.g. returned from a household which has moved to the city) to be allocated to APs to cover their land loss fully, then the APs will be allocated land and the compensation will be reserved for village infrastructure maintenance or improvement. Standing crops compensation rate is CNY 1,200, of which 100% will be paid to the affected households. This compensation will be added to the overall compensation standard of the AH.

54. The compensation rate is very generous compared the current land lease price. According to the current land-leasing price in the project area, plain dryland, which is the main cultivated land type, is CNY 200-300 depending on location for convenience of transport. The project compensation for plain dryland per mu is CNY 54,000 that is worth of 180 years land leasing price at the existing higher rate of CNY 300. Due to limited land acquisition per household and high compensation rate, most of APs are not worried about loss caused by land acquisition.

55. However, to ensure that the affected households use the compensation in a rational manner, the PMO and other related agencies will provide guidance and required training. The following are restoration options and assistance measures for permanent land acquisition.

(ii) Agricultural resettlement

56. For those AH interested in agricultural activities, they will use the cash compensation to improve the remaining land by increase of fertilizer use or change grain crops plantation to cash crops plantation such as ginger, chili, fruit trees, and garden plant seedlings which require intensive labor and capital investment. It is estimated that a plantation of ginger, chili and fruit will generate income of about CNY 1,200-2,000 per mu compared to that of CNY 900 of grain plantation. It is an increase of about 33% to 122% a year. It will be easy for the chosen household to offset their economic loss caused by land acquisition.

57. For the garden seedlings and fruit tree plantation, training will be provided. For other crop plantation types, training is not desired by APs because most households have such skills already.

(iii) Arranged Jobs

58. In this the project EA and IA committed to give priority to employing APs for the project generated job opportunities during construction.

(iv) Non-farming employment/business

59. As the land acquisition caused income loss per household is quite limited and agricultural income is no longer their main income sources, AH may choose to spend the land compensation and saved time on non-farming employment or self-employment business to offset their income loss. Relevant skill training will be provided to the APs as necessary or required, so budget will be included in the resettlement plan as required.

(v) Training

60. Based on the restoration options chosen by the AHs, training programs will be designed to meet the specific needs and preferences of AHs.

61. For the households that choose agricultural restoration measures, agricultural technical training such as gardening plant seedling producing, fruit tree plantation and other cash crop plantation will be provided as required.

62. For the non-farming employment, skill training will include landscaping, house decoration, handicraft production, car repair, and other skills.

(vi) Recovery Plan of Ground Attachments and Special Facilities

63. The special facilities affected by the project are mainly power lines, telecommunication lines, etc. To minimize disruption to residents, detailed surveys have been done and the budget has been included in the RP budget. The relevant line agencies will be responsible for detailed relocation planning and rebuilding electric power and communication facilities.

6 Institutional Arrangements

6.1 Institutional Arrangements

64. Since resettlement is a very comprehensive task that needs the assistance and cooperation of various departments, the relevant departments shall participate in and support resettlement implementation. Each affected township or village has one or two chief leaders responsible for resettlement. The agencies responsible for the LA and the HD in the Project are:  Shaanxi Provincial (Communication Department ADB Loan) Project Leading Group (SPPLG)  Office of Projects with Foreign Capital of Shaanxi Provincial Transport Department  Shaanxi Provincial (Communication Department ADB Loan) Project Management Office (SPPMO) in Foreign Funds Project Office (FFPO)  Xunyang County ( ADB Loan Road) Project Management Office (XCPMO)  Xunyang County (ADB Loan Road) Project Resettlement Office (XCPRO)  Ankang City (ADB Loan Road) Project Leading Group (ACPLG)  Shangluo City (ADB Loan Road) Project Leading Group (SCPLG)  Shangan County  Project town/township governments (PTG)  Village committees (residents committee）  Project design Institute (DI)  External independent monitoring and evaluation agency  Other departments: Land Resources Bureau (LRB), Women’s Federation, Labor and Social Security Bureau.

65. The Organizational Chart shows in Figure 6-1.

Leading Group of Shaanxi ADB Loan Mountainous Road Safety Demonstration Project and Its Office

Project Leading Group of Design Ankang City (APLG) and Agency its office (APMO)

Xunyang County Project

Internal Office monitoring External monitoring unit

Xunyang County Project Resettlement Office

Project town resettlement office (TRO) under Town Government (TG)

Community and village committee

Affected people

AH by AH Infra HD by struc LA ture

Figure 6-1: Project Relocation Organizations

7 Resettlement Budget

7.1 Resettlement Budget

66. Shaanxi Provincial (Communication Department ADB Loan) Project Leading Group (SPPLG) and SPPMO will ensure that adequate budget for land acquisition and relocation is made available. All costs of compensation, relocation, and livelihood restoration will be considered project costs. For rural-roads with resettlement impacts, the RP and the sub-project budget will provide an itemized budget for all resettlement activities including LAR compensation and subsidies, provisions for setting up resettlement unit, staff training and capacity building, monitoring and evaluation, and resettlement plan preparations. SPPLG and SPPMO will ensure the flow of funds to its project county level general offices that will be responsible for the payment of compensations.

67. The compensation for land acquisition and demolition and other costs of each subproject will be paid to the affected people and units by the county PMOs through their resettlement offices in accordance to compensation policies and standards confirmed in resettlement plans prepared.

7.2 Management and Disbursement of Resettlement Funds

68. Land compensation fees and resettlement subsidies should be used in full consultation with the APs; young crop fees are paid directly to the affected persons; compensation fees for infrastructure and attachments are paid to the affected entities or individuals.

69. To ensure that the resettlement funds are available both timely and completely, and the APs’ production, livelihoods and income are restored, the following measures will be taken: (i) All costs related to this RP shall be included in the total budget of the project. (ii) Land compensation fees and resettlement subsidies shall be fully paid up before land acquisition, so as to ensure that all affected people are properly resettled. (iii) For AH who choose cash compensation, 50% of compensation fees for HD shall be paid to the APs upon execution of the HD compensation agreement, and the balance shall be paid upon house handed over. For AH who choose unified relocation option, balance of the compensation by deduction of the new house price will be paid at one time after the agreement is signed. For AHs who choose reconstruction of houses by themselves, new housing plot will be allocated by village committee or township government when the agreement is signed, and all compensation should be paid when the AH hands over or vacates the house. If a plot/unit is provided, that compensation for homestead will be deducted. The moving allowance will be provided at handover/vacation of the house, and transition allowance will also be provided as required. (iv) To ensure the smooth implementation of land acquisition, relocation and resettlement, the finance and supervision institutions at all levels will be established to ensure that all funds will be paid both timely and completely. (v) No budget is estimated yet as the project design is not ready yet. The resettlement costs may be increased due to the change of the Project scope and related LAR impacts, the increase of the compensation standards and price inflation, but the IA will ensure that compensation fees are fully paid. The budget shall be modified as necessary in the RP or updated RP.

70. Figure 7-1 shows the resettlement funds distribution flow.

Disbursement of resettlement funds

Land acquisition Compensation fees for compensation infrastructure and Housing agreement and ground ancillary facilities demolition fees payment of fees

Sign agreement

50% of relocation fees

Relevant units or

individuals ttlement subsidy ttlement

Hand over/vacate Rese

Land compensation fees compensation Land house

Compensation fees for young trees young for fees Compensation

Direct payment Affected people The balance should be paid

Payment Village committee before LA Ask for villager’s opinions through village meetings

Figure 7-1: Resettlement Funds Flow of Distribution

8 Public Participation and Grievance Redress

8.1 Public Participation

71. According to relevant policies and regulations of ADB, the PRC, Shaanxi Province Transport Department with Foreign Funds and the project counties and district, it is required to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives. It is necessary to develop a sound framework and implementation rules, preparing an effective RP, and organizing proper implementation.

72. The main stakeholders refer to the groups directly affected by the project, including: (1) those suffering land loss and property loss; (2) the villages to be benefited in the project area; (3) all organizations and companies directly participating in project construction and operation, such as construction contractor.

73. This resettlement framework sets the requirements for public consultation and participation in case a resettlement plan is required to be prepared for the road safety component of the project. The borrower client will conduct meaningful consultation with affected persons. Meaningful consultation is a process that (i) begins early stages of the preparation of the project and is carried out on an ongoing basis throughout the project cycle, (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected peoples, (iii) is undertaken in an atmosphere free of intimidation or coercion, (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups, and (v) enables the incorporation of all relevant views of affected peoples and stakeholders into decision making.

8.2 Grievances and Redress

74. To ensure rehabilitation and improvement of the affected persons’ production, livelihood and living conditions, the provincial and county PMO closely consulted with the affected persons to reduce complaints. A mechanism is set up to provide AP with opportunities to complain and to solve problems.

8.2.1 Grievances

75. Contents of grievances include any aspect of resettlement, for example, house compensation, quantity of assets, land compensation, selection of housing sites, and income loss, relocation fees and compensations during house rebuilding, etc.

8.2.2 Grievance Procedures

76. The public participation is always encouraged in the process of compiling and implementing the RP. No substantial dispute is expected to arise; however there may be some unforeseeable problems that occur in the process. In order to solve such potential problems effectively and ensure the project construction and land acquisition to be carried out successfully, a transparent and effective appeal channel has been set up.

77. The grievance procedures will be operative throughout the entire construction period so that they can be used by villagers to deal with problems relating to infrastructure rehabilitation, such as the reconstruction of irrigation networks, the positioning and design of drainage culverts,

local road access, the use of temporary land, etc. In this way villagers will have an effective procedure to bring these matters to the attention of IA and the contractors, as well as a forum, for their timely resolution. As an additional measure, village leaders will be provided with a name and contact point (e.g. Telephone number), to whom they can raise matters relating to the road construction as and when they arise.

78. The basic procedure of the grievance solution is: APs-Village committees- Township or town government- county resettlement office-Provincial PMO resettlement division.

79. The basic grievance redress system is as follows: (i) Stage 1: If APs have any dissatisfaction with RP or implementation, they may report to the villagers’ committee. The villagers’ committee or the APs may directly appeal to the resettlement offices for negotiated resolution or put forward an oral or written grievance. The resettlement offices record the complaints and resolve the problems within two weeks after the receipt of the complaints if the grievance is oral. (ii) Stage 2: If the APs who lodge the complaints are not satisfied with the results of the Stage 1, they may lodge a grievance to Xunyang county PMO and TRO, after receiving the decision. The latter will make resolution within two weeks. (iii) Stage 3: If the persons who lodge the complaints are still not satisfied, they may after receiving the decision, lodge complaints to the SPPMO for arbitration. The latter will make arbitration decision within three weeks. (iv) Stage 4: If the persons are still dissatisfied with the decision of the Stage 3, they may, after receiving the arbitration decision, appeal to administrative setups step by step (township office, county office, authorities of letters and calls, administrative supervision, disciplinary inspection and procurement department) according to Administrative Procedure law.

80. The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures such as village notice boards, to ensure they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by resettlement office that receives these grievances.

81. At any point, if the appellant is dissatisfied, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law of the PRC.

82. The APs may also express grievance to the external monitoring agency, who would then report it to Xunyang County resettlement office, Xunyang Land and Resource Bureau, and SPPMO. Alternatively, the APs may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the APs may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012).5

83. All the grievances received, oral or written will be recorded and their redress will be recorded as well and these will be made available to the external monitoring agency or ADB review missions on request. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. During the whole construction period of the Project, these appeal procedures shall remain effective to

5 For further information, see http://www.adb.org/Accountability-Mechanism/default.asp.

ensure that the APs can use them to address relevant issues. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be published to affected population on mass media.

8.2.3 Grievance Redress Principle

84. The resettlement offices at each level must perform onsite investigations on the complaints from the people and closely consult with them on their opinions before providing practical and justified redress opinions in accordance with the principles and standards specified in national laws and ADB’s involuntary resettlement safeguards principles enshrined in the RP. The complaints that could not be solved must be submitted in a timely manner to the higher resettlement department, and the RO at each level are required to provide assistance on investigations.

8.2.4 Contents and Form of Reply to Complaints a.) Contents  Description of the complainants’ grievance;  Results of investigations;  National policies, and the ADB’s principles and standards specified in RP;  Resolution and its basis; and  The complainant has the rights to appeal to the higher resettlement department or to the courts. b.) Form of Reply  For complaint concerning individual case, the reply can be directly delivered to the complainant in written form.  For complaints frequently addressed, notify the local village or sub-village by convening village meeting or issuing documents.

8.2.5 Report of Grievance

85. During implementation of the RP, the resettlement units shall make proper records and management of the complaints and solutions, and report them to the provincial PMO in written form monthly.

9 Implementation of RP

86. If a rural road safety improvement component requires preparation of a RP, it will include detailed implementation schedule for resettlement activity. The schedule of resettlement program will be closely linked with the construction content, works quantity, time limit, resettlement objects and modes, and other factors. The payment of compensation for land acquisition and demolition, the providing of other livelihood rehabilitation measures (in cash or in kind) and the allocation of subsidies or allowance should be paid in installment in time.

10 Monitoring, Evaluation and Report

87. As the land acquisition and house demolition impact for rural roads safety improvement are very limited, no large scale land acquisition and house demolition anticipated but some small size land for road safety facilities (most of them will not exceed the existing road bed), the implementation of this road safety component will be internally monitored to (i) confirm there are no LAR impacts on certain road sections and (ii) monitor the RP implementation on road section with impacts. The overall monitoring will be undertaken by the SPPMO. The monitoring will involve reviewing of the monitoring documents submitted by the project county/district PMO as well as site visits to verify that the RP is being implemented in accordance with the specified provisions. The PPMO will prepare a consolidated report as part of the quarterly progress report for review by the ADB.

88. The specific content of the PMO’s internal monitoring report will include: (i) The implementing progress and quality of projects for APs economic rehabilitation/improvement; (ii) The investigation, coordination and suggestions for the main problems existing in resettlement institutions during the implementing process; (iii) The allocation, disbursement, and use of resettlement compensation; and (iv) Resettlement participations and consultation in the implementing period.

89. The restoration of family income, particularly the vulnerable group after relocation and resettlement will be reported annually.

11 Procedural Guidelines for RP Preparation and Due Diligence

90. The SPPMO will provide overall oversight to undertake a due diligence to ensure that the involuntary resettlement safeguards are being adhered to in implementation of the rural roads safety improvement. As part of the due diligence process, prior to providing investment for any rural road, the person in charge of resettlement at the SPPMO will ensure that the respective counties where the rural roads are located, carry out an initial screening of impact assessment to determine whether the road safety improvement involves land acquisition or involuntary resettlement including an assessment of the degree and significance of the LAR impact.

91. Where land acquisition or involuntary resettlement impacts are identified, a RP will be prepared by project county/district PMO. The RP plan can cover all road sections that have completed (i) detailed design and (ii) detailed measurement survey for sections with LAR impacts. The RP should be reviewed by the EA for their endorsement, disclosed to affected persons and then submitted to ADB for review, approval and website posting.

92. Based on road design, SPPMO will ensure that all the rural roads under the project are screened in accordance to the IR Screening Checklist provided under Table 11-1. The screening results will be summarized for resettlement impacts of project in accordance to the Table 11-2. The screening outcomes (both checklist and summary) for all the roads are submitted to the ADB for review to ensure that no rural road safety improvement that could result in LAR impacts be started until appropriate safeguards measures, including preparing a RP and ADB approval, are in place.

Table 11-1: Involuntary Resettlement Screening Checklist Probable Involuntary Resettlement Effects Yes No Not Known Remarks Involuntary Acquisition of Land

1. Will there be land acquisition? 2. Is the site for land acquisition known? 3. Is the ownership status and current usage of land to be acquired known? 4. Will easement be utilized within an existing Right of Way (ROW)? 5. Will there be loss of shelter and residential land due to land acquisition? 6. Will there be loss of agricultural and other productive assets due to land acquisition? 7. Will there be losses of crops, trees, and fixed assets due to land acquisition? 8. Will there be loss of businesses or enterprises due to land acquisition? 9. Will there be loss of income sources and means of livelihoods . due to land acquisition? Involuntary restrictions on land use or on access to legally designated parks and protected areas 10. Will people lose access to natural resources, communal facilities and services? 11. If land use is changed, will it have an adverse impact on . social and economic activities?

Probable Involuntary Resettlement Effects Yes No Not Known Remarks 12. Will access to land and resources owned communally or by the state be restricted? Information on Displaced Persons: Any estimate of the likely number of persons that will be displaced by the Project? [ ] No [ ] Yes If yes, approximately how many?

Are any of them poor, female-heads of households, or vulnerable to poverty risks? [ ] No [ ] Yes Are any displaced persons from indigenous or ethnic minority groups? [ ] No [ ] Yes

Table 11-2: Resettlement Impacts Summary County______Township______Road Name___ Road Code___ Road Class___ Total Length___ Rehabilitation Length____ Contractor Package Number___ Cost Estimation___ Affected Village Name______Number of Affected Villages_____ Item Remarks 1. Land Acquisition Areas of acquired land Mu Of which farm land Households affected Number 2.Houses Demolished Areas of demolished houses Square meters Households affected Number 3. Affected People Households affected Number Person affected Number 4. Resettlement Cost Land compensation and resettlement CNY subsidy House compensation CNY Other costs CNY 5. Disclosure to Affected Persons Full consultation with APs Yes or No Disclosure of entitlements & rates Yes or No Grievance mechanism in place Yes or No

Appendix 1: Due Diligence Report for Resettlement Impact Assessment of the Additional Road Sections for Safety Improvement

1. The government of Shaanxi and the Asian Development Bank (ADB) are developing a project that will see investments in more than 890 km of roads in Ankang and Shangluo, two prefecture-level cities in the Qinba Mountains area that have populations of 2.95 million and 2.41 million, respectively. Together, these municipalities account for almost 15% of Shaanxi Province’s population.

2. Improving road safety is a particular focus of the project. According to the Department of Public Security (DPS), in the five years to 2012 there were 9,831 deaths and 30,021 injuries on the roads in Shaanxi. Based on Ministry of Transport Research Institute of Highway (RIOH) estimates, the economic cost of these deaths and serious injuries is CNY 31 billion (USD 5 billion). It is acknowledged that some sources, including the World Health Organization (WHO), indicate that road deaths may be under reported.

3. The project has three components requiring civil works with the potential of land acquisition and house demolition impacts: 1) Component 1: Rehabilitation of 187 km arterial highways, including 60.25 km of S102 Xunyang – Xiaohe Highway, 34.36 km of G316 section from Xunyang – Ankang City Center Highway and 92.35 km S224 Shangnan County Chengguan Town – boundary of Shaanxi and Hubei provinces; 2) Rehabilitation of 8 rural roads with the total distance of 139.6 km, including one township road each in Xunyang County, Hanyin District and Shangnan County and three village roads in Xunyang County and two in Hanyin District. 3) Component 3: Improvement of the road safety of components 1 and 2 and additional 25 rural road sections of about 569.66 km.

4. For component 1 and 2, the road safety improvement is integrated into road rehabilitation, a series of separate RPs have been prepared to deal with the potential resettlement impact caused. For component three of the additional 25 sections of about 570 km, no land acquisition and house demolition identified from technical review and filed observation Of RP survey. However, to deal with any unanticipated LAR impacts a Resettlement Framework has been prepared. On advice of ADB, this due-diligence report is prepared rather than sample RPs. As evident by 5 RPs prepared for the project, it will not be difficult for the Project EA/IAs to prepare an RF based RP if the need arises during the project implementation. a.) Due Diligence Undertaken for RP issues of additional section of Road Safety component 5. The China Road Assessment Program (ChinaRAP), a collaboration of the RIOH and the International Road Assessment Program (iRAP), played a significant role in the development of the project, helping to demonstrate the impact of rigorous and data driven road safety assessment and design practices to reduce crash rates and provide a model. The project was able to leverage baseline road assessments conducted in 2012 by ChinaRAP and funded by the World Bank Global Road Safety Facility (GRSF). It also involved interactive star ratings of designs as they were developed by local design institutes. No other design improvements are involved in this component.

6. The PPTA undertook a standard review and technical due diligence of the proposed highway preliminary designs for the trunk roads and the rural roads that were to receive rehabilitation and upgrading. This investigation reviewed alignments, realignment decisions,

tunnels, bridges and general design standards and materials. This design stage included the majority of engineering-related road safety enhancements.

7. The ChinaRAP team then reviewed the designs and analyzed higher levels of road safety intervention that might further reduce safety concerns to vehicle occupants, pedestrians, cyclists and motorcyclists. These additional considerations in the most part, related to lane and intersection markings, signage, use of rumble strips, pedestrian crossings, village warning signs, speed bumps, warning lights etc. The interventions could also include minimal use of small passing bays (within existing ROW) on narrow roads.

8. All land acquisition and resettlement resulting from the realignments or widening of trunk and rural roads has been addressed in individual resettlement plans. A resettlement framework for the 25 additional roads that were to receive only road safety enhancements is prepared, to be used in the event that road safety enhancement recommendations caused land acquisition or resettlement impacts. Though many possible road safety improvements could potentially have been chosen for these additional roads, the proposed improvements also needed to generate a suitable benefit cost ratio level. Due to the very low levels of traffic on these 25 additional roads, major (and costly) road safety interventions were not to be implemented. The ChinaRAP team and the Executing Agency have advised that no land acquisition or resettlement will result from the selected road safety improvements.

9. The project resettlement survey included conducted field visit to 8 out of 25 selected additional sections for road safety improvement. According to the technicians, most of the road safety measures (signage, speed control facilities, etc.) are designed within the road sub-grade, a few may at the edge of the road sub-grade but still within the right of way (ROW). No road safety facilities were designed beyond the ROW.

10. In case any minor land acquisition or structure demolition required during the implementation, a RF was developed to cover the proposed road safety upgrades to the 25 section 569.66 km of rural roads was developed. The FFPO，Xunyang and Hanyin PMO committed to follow the RF to develop RP if any LA and structure demolition is required. This requirement will also be included in the bidding documents.

11. Screening checklist has been developed under the RF for screening and assessing the potential LAR impacts of road safety measures implementation on 25 roads. FFPO and the two project IAs will ensure that these roads are screened for LAR impacts prior to the commencement of work and the screening results will be submitted for ADB review and in case potential LAR impacts are identified for a road, a RP will be prepared based on the RF and will be submitted to the ADB.

12. FFPO though Xunyang and Hanyin PMOs will ensure that during project implementation, the LAR impacts of the road safety components are monitored and reported. FFPO will also ensure that these reports are submitted to the ADB as part of PPMS reporting. On completion of road safety component, the component will be audited and an audit report indicating no LAR impacts for the component will be submitted to the ADB. If any LAR impacts are identified that have remained unresolved, FFPO will ensure that corrective action plan is prepared and implemented.

Table 1: List of additional road sections visited by PPTA team to scanning RP impacts Distric Visit by LAR Lengt Total t/ N survey impact Name of road h budget Count o. team identified (km) (CNY) y X213 Section from Hengkou Town to 1 Yeping Town 43.00 7,374,695 X210 Section from Wuci Intersection to 2 Dongzhen Village 62.67 10,397,177 Hanyin Y103 Section from Zhangtan to Qingtao 3 District Village 40.11 7,521,895 Y201 Section from Aijiahe to Baohe yes No 4 Bridge 11.50 2,210,914 Y202 Section from Longtangou to yes No 5 Gongjin Village 9.70 1,845,024 Subtot 166.98 29349705 al 6 X304 50.56 6,479,917 Y201 Section from Shagoukou to 7 Liulitan 20.56 3,789,313 Y203 Section from Bailiu Town to Bailiu 8 Gerocomium 25.56 3,276,391 Y206 Section from North Xiaohe to Yes No 9 Shiliwa 15.81 2,707,764 Y212 Section from Mogou to Yangshan 10 Village 20.20 3,427,869 Y301 Section from Hongjun Town to Yes No 11 Dongchuan Village 10.50 1,951,115 Xunya Y302 Section from Liangheguan to 12 ng Sanhe 10.95 1,185,664 County Y303 Section from Shuanghe Bridge to Yes No 13 Guochang Village 24.56 1,355,086 Y304 Section from Ganxiqiaotou to Yes No 14 Maping Town 22.10 2,594,237 Y305 Section from Lvhe Bridge to Lijia 15 Dam 5.84 1,367,964 16 Y308 Section from Pingding to Pailou 9.38 741,797 17 Y311 Section from Shenhe to Pingan 20.90 2,905,951 Y312 Section from Dongchuan estuary 18 to Shengjia 9.95 1,496,754 19 Y313 Section from Zongxi to Wuwang 8.84 983,163

Subtot al 255.71 63,612,690 X313 Section from Bailang Town to 20 Sizhuangzi 23.50 3,205,404 X316 Section from Zhaochuan Town to 21 Bailuchu Village 39.10 5,549,461 Shang Y206 Section from Liangjiafen to nan 22 Shizhuhekou 23.00 3,521,203 County Y335 Section from Pohekou to 23 Wenhuaping 21.42 3,905,723 Y338 Section from Taijihe Town to Yes No 24 Xianghe Town 30.95 5,206,989

Distric Visit by LAR Lengt Total t/ N survey impact Name of road h budget Count o. team identified (km) (CNY) y Y339 Section from Xianghe Town to Yes No 25 Zijingguan Town 9.45 1,556,613 Sub-tot al 147.42 22,945,393

Total 570.11 150,170,773 Sources: Shaanxi Provincial Project PMO and Design institute 13. According to the ChinaRAP road safety reports, the road safety enhancements for these roads are limited to: roadside safety barriers, lateral vibration lines, speed humps, warning piles, road signs, pedestrian crossings, flashing yellow lights and marked parking areas for buses.