RP863 v2

Public Disclosure Authorized Urban and Rural Integrated Pilot Project

Resettlement Policy Framework

Public Disclosure Authorized Chongqing World Bank Project Management Office Chongqing Technology and Business University Dec. 2009

Public Disclosure Authorized Public Disclosure Authorized

1 18 1 Project Introduction

In August 2008, the National Development and Reform Commission (NDRC) formally approved the 84 million USD Chongqing Integrated Urban and Rural Development project (Phase 1) and enlisted it into the Three-year Rolling Plan (2009~2011) of the World Bank Project to facilitate the process and the key tasks of the Chongqing integrated urban and rural development and reform. On the basis of this, the Project management Office (PMO) of the World Bank-funded Chongqing Integrated Urban and Rural Development and Reform Pilot Project under the Chongqing Municipal Development and Reform Commission have reviewed and screened 16 pilot projects based on the principles of “ urgency”,” “ representativeness”, “ effectiveness” and “ public welfare”. The estimated total investment of these projects is 1.31758 billion CNY and 84 million USD will be applied from the World Bank loan. These projects include: • Urban infrastructure construction, including 4 road subprojects and 3 water supply subprojects; • New countryside construction pilot village, including 4 subprojects regarding village road, comprehensive service, safe drinking water, ecological environment, new energy development, rural water resource infrastructure etc; • The capacity building for improving the employing capacity of the migrant workers, including 3 subprojects concerning the employment training centers for the rural surplus labor force; • The grassroots sanitation service system, including 2 subprojects with regard to constructing urban community service center, urban community service station, rural town (township) sanitation station and village sanitation offices etc. The specific names of these subprojects are listed in the table 1 below.

Table 1: Subproject Lists of the Project Types of Subproject Names of the Subprojects Huiyi Road Extension Project in Banan Highway from Nie’ao to Liangting in Xiushan County Phase I Road Road Infrastructure Construction Project In Tongliang County Urban Banqiao Township Road Infrastructure Construction Project Infrastructure in Construction Zhuyi Township Water Supply Work in Huangshui Township Water Supply Project in Shizhu County Water Supply Shiye, Rongxi and Longchi Three Townships Water Supply Project in Xiushan County Construction of Training Base for Skill Training of Migrant Workers for Urban Employment in Construction of Training Base for Skill Training of Migrant Workers for Urban Employment in Wushan County The Capacity Building for the Construction of Training Base for Skill Training of Migrant Migrant Workers Workers for Urban Employment in Tujia Minority Autonomy Prefecture in Shizhu County Construction of Training Base for Skill Training of Migrant Workers for Urban Employment in Chongqing Industrial and Commercial University New Countryside Construction New Countryside Demonstration Project in Xishan, Qingshui Pilot Village and Chuijiao Villages of Qijiang County New Countryside Demonstration Project in Wutu Village of Town in

2 18 Types of Subproject Names of the Subprojects New Countryside Demonstration Project in The Grass-root Sanitation Service System in the District and Grassroots Sanitation Service Counties System The Community Sanitation Service System in Yubei District

Among these 16 subprojects, 5 of 7 urban infrastructure construction projects have land acquisition and house demolition and the relevant RAPs have been prepared. The Zhuyi Township Water Supply Project has no land acquisition and house demolition. Banqiao Township Road Infrastructure Construction Project in Yongchuan District is to build the roads within the village and this will cover land acquisition. The New Countryside Construction Pilot Village Subprojects including Qijiang, Wanzhou and Chengkou have land acquisition but the needed land areas will be adjusted within their respective villages on the basis that these subprojects will be developed and driven by the local communities. The detail of this land adjustment is presented in Appendix 1. The capacity building subprojects have no land acquisition and house demolition and all of them are basically to purchase the equipment except for some minor road updating and rebuilding and decoration of the existing plants in the Subproject of Construction of Training Base for Skill Training of Migrant Workers for Urban Employment in Chongqing Industrial and Commercial University. The sanitation subprojects also have no civil works and therefore no land acquisition and house demolition because 1000 village clinics and 40 town (township) sanitation offices will be operated in the existing buildings. In the Banqiao Township Road Infrastructure Construction Project in Yongchuan District and The three New Countryside Construction Pilot Village Subprojects including Qijiang, Wanzhou and Chengkou, there will be internal land adjustment. The needed land areas for roads, the water purifying plant, the water storage tank, the comprehensive service center and the waste collection stations etc in these subprojects will be obtained through internal land adjustment based on the willingness of the villagers and also on the condition that villagers will be benefited from these projects and manage these facilities by themselves. During the project preparation stage, the project owner and the design institute have conducted the detailed survey on the affected villagers and their villages. They have collected the opinions of local people on the subprojects through public consultation. The villagers are willing to contribute their land for the project construction after the consultation and discussion of the village representative meetings to improve the local infrastructure. At the same time, the project owner will also try its best to minimize the negative impact on the local people. For example, the needed land areas for the project will use the wasteland or the land reserved by the village groups. In the new rural construction pilot project in Dazhou Town of Wanzhou County, the road hardening, the sidewalk upgrading and the road evanescence will be done in the existing ones and no additional land is required. The proposed 1 drinking water tank will be built on the village- reserved land and no any individual farmers will be affected. The most of the infrastructure projects will be built on the existing sites or on the wasteland. Only few of farmers will be affected by land acquisition. When these farmers are affected, the village will mobilize the land reserved to compensate them and therefore, the impact of land acquisition is nearly zero and their income won’t be affected. The ownership of these acquired land for the subproject construction won’t be changed and still belong to the village collectives. So, the subprojects will not have the negative impact on the local people, rather they will benefit from these subprojects by improved road conditions, reducing the traveling or transportation costs and improved living standards. During the project implementation and the monitoring stage, the project owner will keep local people informed of the project and establish the good appeal mechanism (see Attachment 1) to ensure that all the relevant appeals and complaints from local people could be handled appropriately and timely.

3 18 According to the current design, these subprojects won’t cover land acquisition and house demolition. However, these may become possible during the project implementation. In case any of these subprojects cover unexpected land acquisition and house demolition, this RPF must be followed to prepare the relevant document.

2 Principles and Objectives In the World Bank funded project, the borrower or the project owner must take all the necessary measures to mitigate the negative social impacts that brought out from the project. The WB OP 4.12 “Involuntary Resettlement” has provided the relevant objectives and the principles. The project owner must compensate the project-affected people to offset their costs of the losses due to the project negative impact for instance, the relocation, the rehabilitation of the their production and lives. All the necessary measures must be taken to avoid or reduce the land acquisition and all the related negative impact. When land acquisition and the relevant negative impact are not feasible to avoid, the principal objective of this RPF is to ensure that the affected properties of all the affected persons (hereafter “the affected persons”) will be compensated at the replacement value and granted with all the possible rehabilitation measures or the other possible assistances to improve or at least restore their income levels and the living standards. Definition of “Project-affected Persons”: refers to group which is affected, for the implementation of project, in the following fields: a) The living standard is affected or would-be-affected unfavorably; or b) The ownership of any house, rights or interest, land (include housing plot, cultivated land and pasture) or other movable estates or real estates are temporarily or almost permanently taken over or occupied; c) the people whose productive assets temporarily or almost permanently taken over or occupied d) The people whose business operation, occupation, work or living or accustom is unfavorably affected. Definition of “Replacement Cost”: for agricultural land, it is the pre-project or pre- displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labor and contractors’ fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. The World Bank OP4.12 established the key principles for the resettlement planning and implementation. The specific principles for this RPF are as following: (a) Where feasible, the project design and RAP should be conceived as the sustainable development program and the affected persons will be benefited from services and facilities provided by the project. (b) All the displaced persons are entitled to the compensation for their lost properties or other alternative, equivalent means of compensations. In case the displaced persons have no legal rights to the lost properties, these won’t prevent them from the relevant compensation or other alternative, equivalent means of

4 18 compensations. (c) The compensation standards in the RAP are the full amount payable to the affected individual owners or the collective owners without any intentional or unintentional deduction. In china, the affected individual owners will obtain the compensations due to the lost houses and other fixed assets while the village collectives will obtain the compensation for the lost land. (d) The village land adjustment is more feasible way when the farmland is acquired. In some cases where the agricultural incomes account for very small proportion of the total incomes, other means of rehabilitation, such as cash compensation or the employment opportunities are acceptable if the affected persons are willing to do so. (e) The housing plots, shops or the reallocated farmland for the displaced persons should have the equivalent use value compared to pre-project or pre- displacement. (f) The transition period should be minimized. The compensation for the lost properties should be paid to the affected persons before their physical relocation to ensure that new houses could be built beforehand. Meanwhile, all the necessary measures must be taken to minimize the transition period before the project construction starts. (g) The affected persons should be fully consulted during the RAP preparation so that they are informed of options and rights pertaining to resettlement. The RAP must be disclosed to all the affected persons in feasible ways. (h) The community services and the accessible resources after displacement should be maintained or improved. (i) The borrowers are obliged to pay all the relevant costs of land acquisition and resettlement. They must provide all the relevant resources for rehabilitation of the affected persons if necessary. (j) RAP should include the proper institutional arrangement to ensure that the rehabilitation measures could be effectively designed, planned and implemented. (k) The proper arrangement of internal and external monitoring and evaluation should be made during the project implementation. (l) The complaints and the appeal channels must be established and all these relevant information must be provided to the affected persons.

3 RAP Preparation and Approval Procedures The borrower is responsible for preparing and implementing the RAP including paying all the relevant resettlement costs. Once the land acquisition and house demolition are identified and the project impact is scoped, the RAP preparation should be started. The borrower will conduct the socio-economic survey to determine the potential project impacts and identify the possible numbers of the affected persons. This survey will determine whether a complete RAP or an abbreviated RAP is required (refer to relevant part in Annex A of OP 4.12). When impacts on the entire displaced population are over 200 people, a complete RAP is required; when impacts on the entire affected people are minor, or fewer than 200, an abbreviated RAP is required. When the affected persons are not relocated to other places and their lost productive material is less than 10% of the total, the impacts are regarded as “comparatively minor”. If the RAP is required, it must be prepared according to the principles and objectives in this RPF. The main contents of the complete and the abbreviated RAP are shown in Table 2.

Table 2: The Main Contents of Complete and Abbreviated RAP

5 18 Types of Complete RAP Abbreviated RAP RAP z Description of the Project; z Project Impacts; z Potential Impacts; z The Survey on the z Socio-economic Survey and Affected Population; Baseline Survey; z The Resettlement z Legal and Policy Framework; Compensation; z Compensation Policy and z The Feedback from the Standards; Affected Persons; z The Resettlement Measures and z The Responsibilities of the Income Rehabilitation Plan; Implementation Agencies; z Resettlement Site Selection, z The Grievance RAP Main Preparation and Relocation; Procedures; Contents z Rebuilding and Rehabilitation of the z The Rehabilitation Scheme Houses, Infrastructure and Implementation; Community Service of the z Timetable and Budget. Resettlement Site; z Institutional Arrangement and the Implementation Schedule; z Resettlement Costs and Budget; z Public Participation and Information Disclosure; z Grievance Channel; z Monitoring and Evaluation.

4 Legal Framework The principal objective of this RPF is to ensure the resettlement planning and its implementation meets the WB OP 4.12 requirement. In addition, the RAP design has to conform to all the relevant laws and regulations in China, Chongqing Municipality and all the concerned districts and counties. The major legal framework is shown as Table 3.

Table 3: The Project Related Legal Framework Date of Taking Policy Documentation Effective Revised and P.R.C. Land Administration Law taken effective on 28 Aug. 2004 The Decision on deepening Reform for strengthening Land 21 October 2004 Management by the State Council (No.28 (2004) by the State Council) The Guiding Opinion on Improving Land Acquisition Compensation and Rehabilitation Regulations ( No.238(2004) issued by Ministry of 3 November 2004 China Land and Resources

The Notice on Adjusting the Policy on the Compensated Land Use Fee of the New Converted Construction Land jointly issued by Ministry 1 January 2007 of Finance, Ministry of Land and Resources and P.R.C. People’s Bank (No.48 2006) and People’s Bank of China The Tentative Bylaw of the Farmland Occupation Tax of P.R.C 1 January 2008 (Decree No. 511 by the State Council) M

D Chongqing Municipal Land Acquisition Compensation and

R Implemented on u i a s e

n Rehabilitation Method (No.55 of the Order of Chongqing Municipal n t r l i 14 May 1999 d e c i c Government) i v t p t h a a a e n The Notice on the Relevant Issues about Adjusting the Land n l i t t d y Acquisition Compensation and Rehabilitation ( No.45 (2008) by 1 January 2008 Chongqing Municipal Government)

6 18 Date of Taking Policy Documentation Effective The Trial Method of the Basic Pension for those Changing from Rural Residents to Urban Residents due to Land Acquisition before 31 1 January 2008 December 2007 in Chongqing City The Notice on Adjusting Land Acquisition Compensation and Rehabilitation Policy by Governments of all Relevant Districts and 2008-2009 Counties OP4.12 Involuntary Resettlement and its Appendices 1 January 2002 WB BP4.12 Involuntary Resettlement and its Appendices 1 January 2002

5 Reasonable Compensation Standards and Rehabilitation Measures The compensation standards1 will be made on the basis on the above-mentioned legal framework and in combination of the local actual conditions. The criteria for determining eligible affected persons are the cut-off date when the notice for land acquisition and house demolition is issued. After this date, the affected persons are not allowed to build new houses, extend or rebuild the existing ones or change the purpose of houses and land use; they are also not allowed to rent their lands or buy/sell houses. Any affected persons after this date are not eligible for the compensation. The objective of the RAP is to ensure that the affected persons could be compensated at replacement value for their lost properties and improved or at least restore their income levels and standards of living. To achieve this end, all the affected persons should be identified and the planned rehabilitation schemes and measures are best suitable for them. Based on the main types of the project impacts (for example, rural land, houses and incomes etc), the following measures in Table 4 should be taken:

Table 4: Compensation Standards and Measures Types of Project Compensation Standards and Measures Impacts Permanent Land Acquisition Appropriation and Allocation of National Land The arrangement of the basic pension: The land compensation includes the compensation for land acquisition, the compensation for young crops and the resettlement subsidy. The compensation for lost land and Permanent the resettlement subsidy are calculated separately. The land is Land compensated based on the areas of land acquired but regardless of the Acquisition types of land. The resettlement subsidy is calculated based on the of Rural numbers of people who change from rural residents to urban residents. Collective The land compensation is the compensation for the affected village Land collectives. 80% of the land acquisition compensation is firstly allocated

to the basic pension for the urban enterprise employees for those affected people by land acquisition, who will change from rural residents to urban residents. This amount of money is allocated from land

1 Housing will be compensated based on the appraisal value. However, in case the appraised price of houses is lower than that in the RAP, the RAP standards are followed.

7 18 Types of Project Compensation Standards and Measures Impacts resource departments to labor and social security departments; the remaining 20% is then allocated to affected villagers. The delivery patterns of the resettlement subsidy are determined by different ages of affected persons who transfer from agricultural to non-agricultural status. For those under 16 years old, the resettlement subsidy will be paid to the individuals at full amount while for those over 16 years old, the individuals have to pay the 50% of the basic pension for urban enterprise employees. The amount required will be allocated directly by land resources department to social security departments from part of resettlement subsidy. The remaining part is used by the individuals for their daily lives. In case the sum of 80% of the compensation for the lost land plus the part that the individual pays for their basic pension is still not enough for the required amount of the basic pension system, the project owner has to bridge this gap. When the acquired farmland area is not eligible for the criteria of changing the rural residents to urban residents for an affected person, the consultation will be made among the affected village, village groups and the affected households to determine the persons who will change from rural residents to urban residents. The households who change from rural residents to urban residents will allocate their relevant part of land or resettlement subsidy to the households who don’t change from rural residents to urban residents. The lost young crops and trees will be compensated at replacement value. When the houses or buildings become unsafe or lose their functions due to partially land acquisition, the whole area of the relevant land should be acquired. The lost incomes, young crops, the costs for land resumption and the affected infrastructure will be compensated due to temporary land occupation. The compensation for the rural collective-owned land will be made based on the purpose of land and the actual costs. It will include the Temporary compensation for young crops and the costs for land resumption. Land The compensation for the lost young crop is based on the crops in Occupation one-season. There will be no compensation for the occupied state-owned land. However, the affected attachments have to be compensated at the replacement value or be restored by the project owner based on their original design and scale. Several options are provided in the principle of replacement value: building houses and providing to the affected households at a favorable price; providing the housing plots and the affected households building their own houses; cash compensation. Rural The site selection and the house design for the affected persons built House by the project owners have to be fully consulted and confirmed with Demolition them.

All the relevant facilities and services have to be rebuilt and restored including power supply, telephone, cable TV and schools etc. The subsidies for the transition period should be able to ensure that all their properties of the affected households could be moved out

8 18 Types of Project Compensation Standards and Measures Impacts and also obtain the temporary houses to live in. Attachment They are compensated at the replacement value. Affected Persons Provide the alternative locations for shops with the same size and who lost the similar customers. their The shop owners will be compensated in cash at the replacement incomes value for their lost houses and facilities. from their The shop owners will be compensated for all the relevant relocation operation costs and the lost sale incomes during the operation suspension of shops period.

Affected Persons Provide the job opportunities with the same salary level. who lost Provide the cash compensation. their incomes Re-employment training and rehabilitation for the affected persons or due to the other necessary assistance to help them with new job positions. lost jobs

6 Organization Although the owner takes charge of fulfilling the RPF and the RAP mainly, the municipal PMO will assist the local government in the project area to supervise the project implementation according to the requirement of the World Bank to assure the RPF could be successfully met.

7 Implementation Procedure The detail arrangement of the resettlement activities will be included into the RAP. If necessary, payment of compensation, rehabilitation measures of other entitlements (cash or practicality) and relocation should be completed in a month before land acquisition implementing. Additional transitional subsidy will be necessary if it is impossible to pay all compensation or provide other necessary assistances before land acquisition.

8 Grievance Mechanism Because of all-round participation of the affected persons during resettlement implementation, serious grievances might not be occurred in resettlement implementation. Nevertheless, the project grievance procedures will be set up in the RPF to fairly deal with the complaints of the affected persons about land acquisition, compensation and rehabilitation and to avoid the complaints from the affected persons due to the too complicate procedures. The procedure shows as follows: (a) Stage I: If one affected person could not satisfy any contents of the resettlement documents, he could first voice his oral or written complaint to the village committee, the residential committee or the project implementation agency. The organizations mentioned above must give specific reply in two weeks.

9 18 (b) Stage II: If the affected person is not satisfied with the reply in the stage I, he could appeal the county level World Bank’s PMO of subproject area, which will give their reply in 2 weeks. (c) Stage III: If the affected individual does not satisfy with the reply made by the World Bank’s PMO, he can appeal to related district or county governments, which will give their reply in 2 weeks. (d) Stage IV: If he is not happy with the reply in Stage III, they can appeal to civil court according to the code of civil law.

9 Fund Arrangement The resource of compensation of land acquisition and relocation is from domestic counterpart fund. All compensation should be paid to the affected persons by stages before land acquisition and house dismantling.

10 Participating Consultation The owner must establish the consultation mechanism participated by the public in the project area. The RAP must introduce the measure adopted or to be adopted to the affected persons, so that the affected persons could take part in proposed resettlement activities to improve their participation consciousness in improving or recovering income level. In order to assure that the opinions and suggestions of the affected persons could be considered fully, the public participation activity should be implemented prior to the project design and mitigating measure implementation. The public participation activity must run through whole implementation process of the RAP and the external monitoring. In the stage of RAP draft and final RAP, the PMO should release the RAP to the affected persons and the public in special spot. The RAP draft must be released in a month before evaluated by the World Bank, and the final RAP must be released after approved by the World Bank.

11 Monitoring & Evaluation The internal monitoring on resettlement impacts will be implemented by the owner as an independent part of the RAP. The internal monitoring will be implemented running through the whole implementation process and post evaluation process of the project. It will evaluate main implementation targets and completed items of the project. The RAP will be revised based on the internal monitoring if necessary. The monitoring report will be submitted to the PMO periodically. Moreover, an independent and qualified agency will fulfill the external monitoring during the RAP implementation. The monitoring scope and frequency should be confirmed in the RAP. The external monitoring report must be submitted to the PMO and the World Bank

10 18 Appendix 1: The Explanation of the Subprojects Involving Internal Land Adjustment

1. Project Impacts In the Banqiao Township Road Infrastructure Construction Project in Yongchuan District and the New Countryside Construction Pilot Village Subprojects including Qijiang, Wanzhou and Chengkou, there is land acquisition but the needed land areas for the village road, water purifying plant, water storage tank, the comprehensive service centre and the waste collection stations etc will be adjusted within their respective villages on the basis that the local farmers are willing to make the land adjustment and will benefit from the project. The ownership of these lands remains unchanged. The detailed project land use is shown in Table1.

Table 1 Project Land Use ( Unit: mu) Subproject Subtotal Collective Land The Farmland and Forestry Wasteland and Reserved Land Contracted to Farmers others Qijiang 53.62 0 46.17 7.45 Chengkou 19.7 0 8.6 11.1 Yongchuan 299.45 299.45 0 0 Wanzhou 1.5 1 0 0.5

The road hardening, the sidewalk upgrading and the road evanescence in the new countryside construction subproject in Yongchuan will be done in the existing ones and no additional land is required. The proposed 1 drinking water tank will be built on the 1 mu village-reserved land and 0.5 mu wasteland and no any individual farmers will be affected. The road updating component in the New Countryside Pilot Subproject of Wutu Village of Dazhou Town in Wanzhou will acquire the land areas that were originally set aside for the road expansion. However, when these land areas are not enough for the road updating in the subproject, the village collective land reserved will be mobilized for that purpose. All the updated road sections are related to the previous road expansion zone, about 1 meter away from each of the road sides. There will be 299.45mu village collective land to be acquired but no any individual farmers will be affected. The three new countryside subprojects including Xishan, Qingshui and Chuijiao villages in Qijiang County will acquire 53.62mu comprising of 46.17mu farmland contracted to farmers and 7.45mu wasteland. For the land to be acquired, the village collective land reserved will be mobilized to reduce the losses of the farmers. There is 210mu collective land reserved in the relevant affected villages, which is sufficient to compensate the households with the lost land. In this way, the total land holding by farmers remain unchanged. Chengkou Subproject will acquire land of 19.7mu, of which 5.6mu farmland, 2 mu wasteland, 3 mu forestry land and 9.1mu flood land, affecting 17 households with 63 persons. Of 5.6mu farmland, 3mu will be acquired for building village public service centre and the gym place. The village committee will adjust the land from village collective-owned land. The use of the remaining 2.6 farmlands will be based on the ‘case by case’ discussion by the villagers. Most of farmers are willing to contribute their land to support the project. If any land adjustments are required, villagers will discuss and make an agreement among them. The crops affected will be compensated according to the Notice on the Temporary Method of Land Acquisition Compensation and Resettlement by Chengkou County Government (No.33 (2008)). Currently, the subproject planning had been discussed at the village meetings in the affected villages and made the commitment on the compensation of the affected farmers. The local people including affected rural households are eagerly looking

11 18 forward to commencing on these subprojects so that they could benefit from it sooner.

2. Principles of the Project Land Use The principles of the project land use are as follows: z The village collective land reserved and the wasteland should be used for the project to reduce the negative impact on local farmers; z In case the farmland or forestry lands contracted to farmers are to be acquired, these land acquisition should be done open and fair on the basis of the farmers’ willingness. The proposed rehabilitation schemes, either land adjustment or compensation should be fully consulted with the affected farmers. z The relevant measures have to be taken to ensure that the income levels of the affected farmers won’t be affected.

3. The Relevant Laws and Regulations of Land Adjustment Article 14 of Chapter 2 in P.R.C. Land Administration Law: when the land is adjusted among the individual farmers within the term of the contract, it must be agreed by over 2/3 villagers at the village meeting or over 2/3 village representatives and also approved by the town (township) government. The Notice on the Management Regulation of the Villager Case-by-Case Fund Raising and Labor Contribution Forwarded by the General Office of the State Council from Ministry of Agriculture (No.4 (2007)): the applicable cases for this Regulation will be: the village field water resources infrastructure construction, the village road construction, the forestation, the land management relating to the comprehensive agricultural development and all the other public welfare projects that farmers think necessary. The Notice on the Management Regulation of the Village level Case-by-Case Fund Raising and Labor Contribution issued by the General Office of Chongqing Municipal Government (No.197 (2003)): the applicable cases will include the public welfare projects with the production nature, such as the village field water resources infrastructure construction, the village road construction and the forestation. The funding raising and labor contribution in the comprehensive agricultural development projects will be managed separately but only limited to the project types which aim to improve the agricultural production conditions. The Notice of Expediting Rural Highway Development by Chongqing Municipal Government (No.96 (2006)): every project has to follow the principle of self- governance by the villager and a case-by-case consultation method should be adopted. For each project, it has to be agreed by most of villagers and they then have the motivation to build highways voluntarily. The relevant district (city or county) governments should make the favorable policies for using the national-owned resources, such as farmland, forestry land and sand in building the rural highways based on the local conditions. In the spirit of “the industry feeding the agriculture and the urban supporting the rural”, all the resources should be mobilized to contribute to the rural highway construction. The democratic decisions-making patterns, such as the case-by-case consultation, the village regulations and agreements, should be adopted to solve the deficient inputs in the operation and maintenance of the rural highway.

4. The Methods and Approaches to the Internal-village Land Adjustment According to the above laws and regulations, when the villages develop the projects for their public welfare, such as build the village road, the village service centers, the village field water resource infrastructure and the forestation, the development details and the specific criteria, methods and the scopes of the required land adjustment will be determined by the village meeting or the village representative meeting authorized by all the villagers through the case-by-case consultation and discussion( over half of all the villagers or 2/3 of the village representatives agreed). And then the village committees arrange the implementation. These village meetings or the disseminations through

12 18 broadcasting will inform of the villagers about the project aims and make them actively participate into the decision-making process on how to build the roads and how to coordinate the needed land area through the internal land adjustment. The government won’t compensate the acquired farmland and forestry land when they are acquired for the projects serving the village public welfare and agreed at the village meetings or the village representative meetings. However, the government at different levels could provide them the certain assistance based on their financial capacity. The land losses due to the village project for its public welfare will be self-governed by the village committee. There are four approaches of compensations: firstly, the lost land is compensated from the farmland or forestry land reserved by village committee or the village group; secondly, the lost land is compensated from the land leave unused due to the death or migration of the other farmers in the village or the village group; thirdly, the lost land is compensated by the joint share of the project beneficiaries based on their benefit magnitude; finally the lost land is compensated by means of the economic incomes of the village.

5. The Measures to Minimize the Project Negative Impacts The project-required land will be from the wasteland and the land reserved in the village to mitigate the project negative impacts on the farmers. In the 4 subprojects covering the land acquisition, most of them use the wasteland or the land reserved in the village. In case the land acquisition of the individual farmers is inevitable, the village group will mobilize the land reserved to have the internal land adjustment to ensure the land areas of the affected households won’t be reduced. The land adjustment has to be consulted with farmers in the village group and the new agreement will be made. In addition, other ways of compensation are arranged based on the willingness of the affected farmers to ensure that the agricultural incomes of the affected farmers won’t be affected. Furthermore, the ownership of these acquired lands for the project remains unchanged and belongs to the village collectives. The villagers are entitled of the participation in the project and access to the information during the project implementation. In case the affected households, such as the vulnerable group, have difficulties in living after obtaining the compensation, the sub-district office (the Township Government) is responsible for incorporating them into the national assistance system according to the rural low-income policies.

6. Consultations and Participation During the project preparation, the project owner and the design institute have conducted the detail survey on the project impacts. The wide consultations were undertaken to collect the ideas of the villagers on the project through the village meetings and household surveys, minutes of village/group meetings and household interview records were documented and filed to ensure the process is transparent, open and fair. See Table2 for details.

13 18 Table 2 Completed Public Consultation Activities Forms of Public Consultation Results of the Public Subproject Time Place Participants Participation Contents Consultation The Offices of Village leaders, Deputy to Daping, Tongming, the People’s Congress, The land All agreed that the Liangfengya, representatives of the adjustment land reserved in the Xinqiao, Benzun, village committee and the patterns for the village will be used Yongchuan 2009/6/15-17 Meeting Gufo, Liuxi, party branch, the farmer land acquisition for the Gaodongzi, representatives and the due to the road compensation of the Wangjiayan and affected household construction lost land. longmentan villages representatives. Subproject introduction, the Village committee officials, many times of subproject the party secretary, the All expressed the 2009.4.1— household construction Farmers' houses party members and the strong support on 2009.4.26 promotion and location, the land affected households, 5% of the project. mobilization adjustment the village total population methods and Chenkou procedures. Village committee officials, The detail scheme The meeting room the party secretary, the of the land of the Qinglong Village party members, the farmer adjustment, the Village public 2009.4.27 representative representatives and the resolutions and All agreed. service centre, meeting affected households, the land Xianyi Town of accounting for 30% of the adjustment Chenkou County. whole village. procedures etc. Village officials, the village group leaders and the Village to build the village The meeting room farmer representatives. No land acquisition Qijiang 2009.4.3 representative public service of Chuijiao Village Totally 57 people, is required. meeting centre accounting for 1.6% of the total village population.

14 18 Forms of Public Consultation Results of the Public Subproject Time Place Participants Participation Contents Consultation Village officials, the village Farmers are willing group leaders and the to contribute to their Village 11 village road The meeting room farmer representatives. lands and the land 2009.4.5 representative repairing in the of Chuijiao Village Totally 57 people, to be acquired will meeting village accounting for 1.6% of the be adjusted within total village population. the village groups. Village officials in the Village Chuijiao Village, the village Mr.Chen Xianbi’s representative representative meeting home, meeting from the from the Dashan, Animal and Farmers are willing 2009.4.9 Huangshakan Dashan, Huangshakan and human drinking to contribute to their Village Group, Huangshakan and Xifangtai Village Groups, water lands. Chuijiao Village Xifangtai Village totally 197 people, Groups accounting for 5% of the total population. Mr.Zhou Village officials, the village Changchun’s home Village group leaders and the 2009.3.29 in Group 4 of representative farmer representatives, to implement the Qingshui Village, meeting totally 185 persons, 10% of All agreed that the New-countryside Gunan Street the total village population. village collective construction Village officials, the village land will be used to Mr.Zhou subproject at group leaders from Group compensate the lost Changchun’s home Village Shagang of Group 4 and Group 5 and the land of the farmers. 2009.4.29 in Group 4 of representative 4 affected households, totally Qingshui Village, meeting 18 persons, 1%of the Gunan Street whole village. officials working in the promotion the Group 4 and 5 in residential committee, the relevant policies 2009.5.15 Qingshui Village of village officials and the and putting up the Gunan Street village group leaders from slogans Group 4 and 5

15 18 Forms of Public Consultation Results of the Public Subproject Time Place Participants Participation Contents Consultation at Shagang of Group 4 in Qingshui 2009.5.31 Village, Gunan Street Newly-built water tank will need to acquire 1 mu wasteland owned by the village. The Rural household other components of 2009.7.8 Household survey 850 farmers Land adjustment family the subproject will be to update or repair the existing Wanzhou ones. No additional lands are required. All farmers agreed. Discuss and Farmer representatives, 25 confirm the Village village committee village leaders, accounting contents of the 2009.9.10 representative All agreed. meeting for 1.5% of the total New-countryside meeting population. Construction subproject.

16 18 During the project implementation and monitoring stage, the project owner will continue to take measures to ensure that the villagers are fully aware of the project progress. Additionally, the good grievance mechanism will be established to ensure that the complaints about the land acquisition and compensation etc could be solved properly and timely. During the project implementation and monitoring stage, the following process will be further documented and filed as required in the RPF: z Detailed inventory of village land use changes, including size, location, nature/quality, as well as involved households, if any, and agreed necessary compensation for the changes’ impact; and z If the land use changes are related to any farmers’ contracted land or/and income generation, agreements on these matters should be made and signed between the villages and the households, with necessary compensation provisions provided, especially for those vulnerable groups and households.

7. Grievance Channels If villagers have grievances about decisions made by the villager meeting or villager representation meeting, or have grievances about change of land ownership and affected household property compensation, complaints or appeals could be made through the following channels: firstly, they can appeal to the sub district office or the Town (Township) Government to conduct the investigation. If any misconduct or the unreasonable compensation standards are identified in the investigation, the sub-district office or the Town (Township) Government could require the village committee to reorganize the village meeting or the village representative meeting to change the decision following the case-by-case consultation method. The relevant land has to be readjusted and the lost land has to be compensated following the right compensation standards. Secondly, when the misconducts in the he case-by-case consultation method or the violation of regulations by the village leaders during the project implementation which have seriously damaged the interests of the village collectives or the legal entitlements of the individual farmers are identified the farmers can directly prosecute them in the sub-district (township) administrative supervisory organs or the County inspection organs. Names, place, contact persons, phonecalls of organizations mentioned above will be disseminated to the affected persons through public meetings, notice announcement to make them fully understand their rights. These grievance procedures will be effective during the project constructions to ensure the affected persons could raise relevant issues through the appropriate channels and discuss them with the relevant organizations and solve it quickly and efficiently.

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