Resettlement Monitoring Report

Project Number: 33439-013 July 2012

PRC: Soil Conservation and Rural Development II Project

Prepared by Research Institute of Agricultural Economy, Fujian Academy of Agriculture Sciences (FAAS) , Fujian Province, PRC

For Fujian Project Management Office

This report has been submitted to ADB by the Fujian Project Management Office and is made publicly available in accordance with ADB’s Public Communications Policy (2011). It does not necessarily reflect the views of ADB. Your attention is directed to the “Terms of Use” section of this website.

ADB Financed Project

Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2),

External Monitoring Report

Research Institute of Agricultural Economy, Fujian Academy of Agriculture Sciences (FAAS) July 2012

CONTENTS 1. Foreword ...... 3 2. Progress of the Resettlement and Land Acquisition Work ...... 4 3. Variations of Land Acquisition Area and Reasons ...... 6 4. Investment in the Resettlement and Land Acquisition Work ...... 10 5. Implementation of Resettlement and Land Acquisition Policies ...... 15 6. Income and Livelihood Restoration ...... 16 7. Public Participation and Appeal Mechanism ...... 22 8. Implementation of the Resettlement and Land Acquisition Work ...... 23 9. Conclusion and suggestions ...... 26

External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China

1. Foreword Experts and staff at the Research Institute of Agricultural Economy, FAAS have formed a monitoring survey team according to the Loan Agreement between the People’s Republic of China and the Asian Development Bank (ADB), and as entrusted by the Fujian Management Office of ADB Financed Projects. , The Project has a total of 103 subprojects that cover the activities including water and soil conservation, integrated agriculture, agro-processing, agriculture market, small hydropower, rural water supply and rural infrastructure. Generally, the scales of these subprojects are quite small, belonging to the expansion or rehabilitation. The implementation of the subprojects under the components of soil conservation plantation, livestock and aquaculture, agro-processing and agriculture market has not involved the resettlement like land acquisition or housing demolition . Of 9 small hydropower schemes, only 2 subprojects were involved the acquisition of arable land. In accordance with the ADB Involuntary Resettlement Policy, the RPs prepared for these two subprojects were approved by the ADB.. Among the remaining 7 subprojects, 2 subprojects were the technical renovation or rehabilitation subprojects, while the constructions of other 5 subprojects were only affected certain flood plain, and did not acquire arable land and housings as well. Of 17 rural water supply subprojects, only 3 subprojects involved the acquisition of arable lands. In accordance with the ADB Involuntary Resettlement Policy, the RPs prepared for these 3 subprojects were approved by the ADB. The remaining subprojects mainly involved the expansion of water plant or expansion/development of water supply pipelines, without any arable land acquisition or housing demolition. Under the component of rural road and flood dike, all the rural road subprojects were just for the expansion or upgrading on the existing right of ways , while the flood control facilities were constructed on the flood plain, without any arable land acquisition or housing demolition . Therefore, total of five subprojects involved in the arable land acquisition. In accordance with the ADB Involuntary Resettlement Policy, these subprojects prepared the short RPs, and external monitoring for them is required to be carried out conducted the resettlement monitoring activities. 1.1 Methods and scope of monitoring The monitoring survey team has conducted an overall evaluation of the resettlement and land acquisition process and the economic development of the affected areas by data collection, questionnaire survey and field survey. This report has been prepared by the Research Institute of Agricultural Economy, FAAS. 1.2 Priorities of this stage of monitoring and evaluation This report aims to sum up the implementation process of resettlement and land acquisition, the disbursement of compensation fees for land acquisition, the production capacity and livelihood restoration of the affected population, information disclosure and public participation, and the social and economic changes before and after resettlement and land acquisition of the resettlement and land acquisition work of the Fujian Water and Soil Conservation Project (Phase 2) (hereinafter referred to as the “Project”) comprehensively and systematically. 1.3 Persons responsible for monitoring and contact information

3 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China Table 1-1 Persons responsible for monitoring and contact information Member of Project Team Position Tel Researcher, Research Institute of Agricultural Leader Weng Zhihui 0591-87869455 Economy, FAAS Assistant Researcher, Research Institute of Lin Haiqing 0591-87869455 Agricultural Economy, FAAS Participants Intern Researcher, Research Institute of Ke Wenhui 0591-87869455 Agricultural Economy, FAAS Researcher, Research Institute of Agricultural Director Zeng Yurong Economy, FAAS Subproject Project Leader Assistants Gaotun Small Hydropower Huang Zhongjian Zhang Xiuluo, Ren Shuqian, Zhuo Changliang Station Project Suicheng Water Supply Expansion Project, Jianning Yu Fuxiang Chen Fanghong County Meizhou Water Supply Huang Jinxian Zhu Yuxin Project Dongxi Water Supply Zheng Chunmei Chen Kaida Project, Tingzhou Hydropower Zhang Daodi Ruan Ximing, Wang Beihuang Development Project

2. Progress of the Resettlement and Land Acquisition Work The subprojects under the Project cover water and soil conservation, integrated agriculture, rural infrastructure, and assistance services and management. The affected areas cover 40 out of the 85 counties of Fujian Province. Five subprojects are involved in the resettlement and land acquisition work, which are the Gaotun Small Hydropower Station Project, the Suicheng Water Supply Expansion Project, , the Meizhou Water Supply Project, the Dongxi Water Supply Project, Xianyou County and the Tingzhou Hydropower Development Project. 2.1 Progress of the Resettlement and Land Acquisition Work In the practical land acquisition work, the communication time with the affected households was longer than expected, and the funds were available behind schedule, holding back the land acquisition work, and rendering some subprojects unable to complete this work as planned. In Suicheng Water Supply Expansion Project, Jianning County, land acquired was compensated for during construction in order to shorten the period of farmland being affected, so that land acquisition was not completed on schedule. In general, the land acquisition work has been completed on schedule for most of the subprojects. A. Gaotun Small Hydropower Station Project 41.94 mu of land has been acquired permanently and 6.3 mu of land occupied temporarily for the Gaotun Small Hydropower Station Project along with 40,593 individuals of young crops. Survey and counseling began in December 2004, the measurement of the land acquisition area

4 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China was completed in December 2004, and the payment of compensation fees and land acquisition completed in August 2005. B. Suicheng Water Supply Expansion Project, Jianning County 36.35 mu of land has been acquired permanently and 42.63 mu of land occupied temporarily for the Suicheng Water Supply Expansion Project, Jianning County along with 80 individuals of young crops. Survey and counseling began in November 2005, the measurement of the land acquisition area was completed in May 2006, and the payment of compensation fees and land acquisition completed in July 2007. The actual progress of land acquisition was behind schedule by 8 months, mainly because land acquired was compensated for during construction in order to shorten the period of farmland being affected (land was not acquired until construction). C. Meizhou Water Supply Project 12 mu of land has been acquired permanently and 24 mu of land occupied temporarily for the Meizhou Water Supply Project. Survey and counseling began in January 2005, the measurement of the land acquisition area was completed in February 2005, and the payment of compensation fees and land acquisition completed in May 2005. The actual progress of land acquisition was largely consistent with the schedule. D. Dongxi Water Supply Project, Xianyou County 12.7 mu of land has been acquired permanently and 217.3 mu of land occupied temporarily for the Dongxi Water Supply Project, Xianyou County along with 1,986 fruit trees. Survey and counseling began in May 2004, the measurement of the land acquisition area was completed in February 2006, and the payment of compensation fees and land acquisition completed in August 2007. The actual progress of land acquisition was behind schedule by 13 months, mainly because the communication time with the affected villagers was longer than expected. E. Tingzhou Hydropower Development Project 103.56 mu of land has been acquired permanently and 27.2 mu of land occupied temporarily for the Tingzhou Hydropower Development Project along with 93 fruit trees, 67 forest trees and 325 bamboos. Survey and counseling began in December 2005, the measurement of the land acquisition area was completed in July 2006, and the payment of compensation fees and land acquisition completed in April 2007. The actual progress of land acquisition was consistent with the schedule.

2.2 Progress of disbursement of compensation fees for resettlement and land acquisition A. Gaotun Small Hydropower Station Project Gaotun Small Hydropower Station Project: 553,996.7 yuan in resettlement funds was appropriated in 2004. During the implementation of resettlement and land acquisition, the progress of fund disbursement was largely in step with that of construction. B. Suicheng Water Supply Expansion Project, Jianning County Suicheng Water Supply Expansion Project, Jianning County: 210,000 yuan in land acquisition fees was paid in 2005, 218,500 yuan paid in 2006 and 153,361 yuan in 2007, 581,861 yuan in total. During the implementation of resettlement and land acquisition, the progress of fund disbursement was largely in step with that of construction. C. Meizhou Water Supply Project Meizhou Water Supply Project: 372,400 yuan in resettlement funds was appropriated in 2005.

5 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China During the implementation of resettlement and land acquisition, the progress of fund disbursement was largely in step with that of construction. D. Dongxi Water Supply Project, Xianyou County Dongxi Water Supply Project, Xianyou County: 1,190,244 yuan in resettlement funds was appropriated in 2007. During the implementation of resettlement and land acquisition, the progress of fund disbursement was largely in step with that of construction. E. Tingzhou Hydropower Development Project Tingzhou Hydropower Development Project: 807,282 yuan in land acquisition fees was paid in 2007 and 538,188 yuan paid in 2008. During the implementation of resettlement and land acquisition, the progress of fund disbursement was largely in step with that of construction.

3. Variations of Land Acquisition Area and Reasons 3.1 Difference between project construction and the resettlement and land acquisition plan The actual area of permanently acquired land of the Project is 206.55 mu, 18.44 mu more than planned (188.11 mu); the actual area of temporarily occupied land was 317.43 mu, 1.27 mu less than planned (318.7 mu); 43,144 individuals of young crops were actually affected, 632 more than planned. Of the permanently acquired land area of the Project, the barren land area of the Suicheng Water Supply Expansion Project, Jianning County increased greatly, but there was little impact on the public, because the barren land was owned by the collective, and the other land acquisition areas were consistent with the plan; the actual area of temporarily occupied land was largely consistent with the plan. The increased quantity of affected young crops is attributed mainly to the statistical error in the Gaotun Small Hydropower Station Project due to numerous young bamboos. Table 3-1 Comparison of actually acquired land for the 5 subprojects with the resettlement and land acquisition plan Permanent land acquisition (mu) Temporary land occupation (mu) Land type Planned Actual Planned Actual Flood land 34.75 37.38 Paddy field 4.56 4.56 108.2 103.4 Dry land 2.1 1.9 109.6 109.93 Barren land 20 36.35 Vegetable 7.5 7.5 plot Sloping field 11.1 10.8 Woodland 96.6 96.6 69.4 72.6 Arable land 19 18.96 24 24 42,512 43,144 Young crops individuals individuals 188.11 mu + 206.55 mu + Total 42,512 43,144 318.7 317.43 individuals individuals 6 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China

A. Gaotun Small Hydropower Station Project In the actual area of permanently acquired land, there was 37.38 mu of flood land, 2.63 mu more than planned (34.75 mu), and 4.56 mu of paddy field, consistent with the plan; in the area of temporarily occupied land, there was 6.3 mu of dry land, 1.1 mu more than planned. 40,593 young bamboos were actually affected, 630 more than planned (39,963). Generally, the actual area of land acquisition and the quantity of affected young bamboos were largely consistent with the plan.

Table 3-2 Comparison of actually acquired land for the Gaotun Small Hydropower Station Project with the resettlement and land acquisition plan Permanent land Temporary land Land type Ownership acquisition (mu) occupation (mu) Planned Actual Planned Actual

Gaotun Reservoir Flood land 34.75 37.38 Village Power Paddy field 4.56 4.56 station Dry land 5.2 6.3 Reservoir Young 39,963 40,593 area Farmer bamboo individuals individuals 39.31 mu + 41.94 mu + Total 39,963 40,593 5.2 6.3 individuals individuals

B. Suicheng Water Supply Expansion Project, Jianning County In the actual area of permanently acquired land, there was 36.35 mu of barren land, 16.35 mu more than planned (20 mu); 15.6 mu of paddy field was occupied temporarily, consistent with the plan; 19.53 mu of dry land was occupied temporarily, 2.07 mu less than planned (21.6 mu); 7.5 mu of vegetable plot was occupied temporarily, consistent with the plan. 80 fruit trees were actually affected, 40 less than planned (120). Generally, the actual area of land acquisition and the quantity of young crops were largely consistent with the plan except that the barren land area varied greatly.

Table 3-3 Comparison of actually acquired land for the Suicheng Water Supply Expansion Project, Jianning County with the resettlement and land acquisition plan Permanent land Temporary land Land type Ownership acquisition (mu) occupation (mu) Planned Actual Planned Actual Barren Village 20 36.35 land collective Paddy Farmer 15.6 15.6 field

7 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China

Dry land Farmer 21.6 19.53 Vegetable Farmer 7.5 7.5 plot 120 80 Fruit trees Farmer individuals individuals 20 mu + 36.35 mu Total 120 + 80 44.7 42.63 individuals individuals

C. Meizhou Water Supply Project In the actual area of permanently acquired land, there was 12 mu arable land, consistent with the plan; 24 mu of arable land was occupied temporarily, consistent with the plan. Generally, the actual area of land acquisition was consistent with the plan.

Table 3-4 Comparison of actually acquired land for the Meizhou Water Supply Project with the resettlement and land acquisition plan Permanent land Temporary land Land Ownership acquisition (mu) occupation (mu) type Planned Actual Planned Actual Arable Farmer 12 12 land Arable Farmer 24 24 land Total 12 12 24 24

D. Dongxi Water Supply Project, Xianyou County In the actual area of permanently acquired land, there was 10.8 mu of sloping field, 0.3 mu less than planned (11.1 mu); 1.9 mu of dry land, 0.2 mu less than planned (2.1 mu). 63.7 mu of paddy field was occupied temporarily, 3.9 mu less than planned (67.6 mu); 84.1 mu of dry land, 1.3 mu more than planned (82.8 mu); 69.5 mu of shrub forest, 3.1 mu more than planned (66.4 mu). 1,986 fruit trees were actually affected, 56 more than planned (1,930). Generally, the actual area of land acquisition and the quantity of affected fruit trees are consistent with the plan.

Table 3-5 Comparison of actually acquired land for the Dongxi Water Supply Project, Xianyou County with the resettlement and land acquisition plan Permanent land Temporary land Land type Ownership acquisition (mu) occupation (mu) Planned Actual Planned Actual Sloping 11.1 10.8 field Dry land 2.1 1.9

Paddy field Farmer 67.6 63.7

8 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China

Dry land Farmer 82.8 84.1 Shrub 66.4 69.5 forest 1,930 1,986 Fruit trees Farmer individuals individuals 13.2 mu + 12.7 mu + Total 1,930 1,986 216.8 217.3 individuals individuals

E. Tingzhou Hydropower Development Project In the actual area of permanently acquired land, there was 6.96 mu of arable land, largely consistent with the plan (7 mu); 96.6 mu of woodland, consistent with the plan. 24.1 mu of arable land was occupied temporarily, largely consistent with the plan (0.9 mu less than planned). 93 fruit trees were actually affected, 6 more than planned (87); 67 forest trees were actually affected, 7 less than planned (60); 325 bamboos were actually affected, 27 less than planned (352). Generally, the actual area of land acquisition and the quantity of young crops are largely consistent with the plan.

Table 3-6 Comparison of actually acquired land for the Tingzhou Hydropower Development Project with the resettlement and land acquisition plan Temporary land Permanent land acquisition (mu) Land type Ownership occupation (mu) Planned Actual Planned Actual Arable land Farmer 7.0 6.96 Reservoir Woodland Collective 96.6 96.6 Paddy field Farmer 25 24.1 Woodland Collective 3 3.1 Construction Fruit trees Farmer 87 individuals 93 individuals Forest Collective 60 individuals 67 individuals Bamboo Farmer 352 individuals 325 individuals 103.6 mu + 499 103.56 mu + 485 Total 28 27.2 individuals individuals

3.2 Reasons for variations in land acquisition area and quantity of young crops There are three main reasons for variation in land acquisition area: First, part of the acquired land was under-registered; second, variations of the construction plan resulted in variations in the actually affected land area or quantity of young crops; and third, there were numerous young bamboos, leading to statistical difficulties. A. Gaotun Small Hydropower Station Project In the actual area of permanently acquired land, there was 37.38 mu of flood land, 2.63 mu more than planned (34.75 mu) due to measuring errors; 6.3 mu of dry land was occupied temporarily, 1.1 mu more than planned (5.2 mu) due to under-registration. 40,593 young bamboos 9 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China were affected, 630 more than planned (39,963), because there were numerous young bamboos, leading to statistical difficulties and errors. B. Suicheng Water Supply Expansion Project, Jianning County In the actual area of permanently acquired land, there was 36.35 mu of barren land, 16.35 mu more than planned (20 mu), because part of the acquired land was under-registered, and the land acquisition area was increased due to the construction of the Project; 80 fruit trees were actually affected, 40 less than planned (120), because the diversion route was optimized. D. Dongxi Water Supply Project, Xianyou County 63.7 mu of paddy field was occupied temporarily, 3.9 mu less than planned (67.6 mu), because the project design was optimized; 1,986 fruit trees were actually affected, 56 more than planned (1,930), because the project design was optimized. There were more affected fruit trees due to under-registration. E. Tingzhou Hydropower Development Project The actual area of land acquisition and the quantity of affected young crops were largely consistent with the plan.

4. Investment in the Resettlement and Land Acquisition Work 4.1 Difference between total investment in the resettlement and land acquisition work and the resettlement and land acquisition plan The actual total investment in the resettlement and land acquisition work of the Project was 4,334,648.7 yuan, 364,633.5 yuan more than planned, actually paid compensation fees for resettlement and land acquisition were 384,5943 yuan, 433,544.6 yuan more than planned; actually paid management fees and accidental costs were 488,705.7 yuan, 68,911.1 yuan less than planned. The total investment was higher mainly because more compensation fees were paid to the affected households. During the communication with them, there were some differences between the planned compensation rates and their expectations. Through repeated consultation with them, the compensation rates was increased to some extent, so that the compensation fees for land acquisition actually paid varied greatly from the plan.

Table 4-1 Comparison of total investment in the resettlement and land acquisition work of the Project with the former plan (Unit: yuan) Compensation fees Management fees and Item for resettlement and Total accidental costs land acquisition Planned 3,412,398.4 557,616.8 3,970,015.2 Actually paid 3,845,943 488,705.7 4,334,648.7

A. Gaotun Small Hydropower Station Project The actual total investment in the resettlement and land acquisition work of the Gaotun Small Hydropower Station Project was 553,996.7 yuan, 73,183.7 yuan more than planned, of which actually paid compensation fees for land acquisition were 481,737 yuan, 65,448.6 yuan more than planned; actually paid management fees 24,086 yuan, 3,271.6 yuan more than planned; and actually paid accidental costs 48,173.7 yuan, 4,463.7 yuan more than planned.

10 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China

Table 4-2 Comparison of total investment in the resettlement and land acquisition work of the Gaotun Small Hydropower Station Project with the former plan (Unit: yuan) Compensation fees Management Item for resettlement and Accidental costs Total fees land acquisition Planned 416,288.4 20,814.4 43,710 480,813.0 Actually paid 481,737 24,086 48,173.7 553,996.7

B. Suicheng Water Supply Expansion Project, Jianning County The actual total investment in the resettlement and land acquisition work of the Suicheng Water Supply Expansion Project, Jianning County was 581,861 yuan, 183,594 yuan more than planned, of which actually paid compensation fees for land acquisition were 505,966 yuan, 161,146 yuan more than planned; actually paid management fees 25,298 yuan, 8,057 yuan more than planned; and actually paid accidental costs 50,597 yuan, 14,391 yuan more than planned.

Table 4-3 Comparison of total investment in the resettlement and land acquisition work of the Suicheng Water Supply Expansion Project, Jianning County with the former plan (Unit: yuan) Compensation fees Management Item for resettlement and Accidental costs Total fees land acquisition Planned 344,820 17,241 36,206.1 398,267.1 Actually paid 505,966 25,298 50,597 581,861

C. Meizhou Water Supply Project The actual total investment in the resettlement and land acquisition work was 372,400 yuan, consistent with the plan, of which actually paid compensation fees for land acquisition were 366,000 yuan, and actually paid management fees and accidental costs 6,400 yuan, both consistent with the plan.

Table 4-4 Comparison of total investment in the resettlement and land acquisition work of the Meizhou Water Supply Project with the former plan (Unit: yuan) Compensation fees Management fees and Item for resettlement and Total accidental costs land acquisition Planned 366,000 6,400 372,400 Actually paid 366,000 6,400 372,400

D. Dongxi Water Supply Project, Xianyou County The actual total investment in the resettlement and land acquisition work of the Dongxi Water Supply Project, Xianyou County was 1,190,244 yuan, 106,092.7 yuan more than planned, of which actually paid compensation fees for land acquisition were 1,146,770 yuan, 176,770 yuan more than planned; actually paid management fees 23,869 yuan, 12,954 yuan less than planned; and actually paid accidental costs 19,605 yuan, 57,723.3 yuan less than planned. 11 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China

Table 4-5 Comparison of total investment in the resettlement and land acquisition work of the Dongxi Water Supply Project, Xianyou County with the former plan (Unit: yuan) Compensation fees Management Item for resettlement and Accidental costs Total fees land acquisition Planned 970,000 36,823 77,328.3 1,084,151.3 Actually paid 1,146,770 23,869 19,605 1,190,244

E. Tingzhou Hydropower Development Project The actual total investment in the resettlement and land acquisition work of the Tingzhou Hydropower Development Project was 1,636,417 yuan, 1,763 yuan more than planned, of which actually paid compensation fees for land acquisition were 1,345,470 yuan, 30,180 yuan more than planned; actually paid management fees 96,892 yuan, 9,473 yuan less than planned; and actually paid accidental costs 193,785 yuan, 18,944 yuan less than planned.

Table 4-6 Comparison of total investment in the resettlement and land acquisition work of the Tingzhou Hydropower Development Project with the former plan (Unit: yuan) Compensation fees Management Item for resettlement and Accidental costs Total fees land acquisition Planned 1,315,290 106,365 212,729 1,634,384 Actually paid 1,345,470 96,892 193,785 1,636,147

4.2 Difference between compensation fees for resettlement and land acquisition and the resettlement and land acquisition plan The actually paid compensation fees for land acquisition under the Project were 384,5943 yuan, 667,684.6 yuan more than planned (3,178,258.4 yuan). This was because the planned compensation rates of the subprojects were not imposed on the affected households; instead, they were communicated with in depth in full consideration of their interests so that they are compensated for satisfactorily as the case may be. A. Gaotun Small Hydropower Station Project In the Gaotun Small Hydropower Station Project, the actual amount of compensation for flood land was 282,592 yuan, 19,882 yuan more than planned; that for paddy field 59,690 yuan, consistent with the plan; that for dry land 58,269 yuan, 44,307 yuan more than planned; and that for young crops 81,186 yuan, 1,260 yuan more than planned. Generally, all compensation fees were equivalent to or higher than the plan.

Table 4-7 Gaotun Small Hydropower Station Project and the resettlement and land acquisition plan Quantity (mu or Amount of compensation Land type Ownership individual) (yuan) Planned Actual Planned Actual Gaotun Reservoir Flood land 34.75 37.38 262,710 282,592 Village 12 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China

Power Paddy field 4.56 4.56 59,690.4 59,690 station 58,269 Reservoir Dry land 5.2 6.3 13,962 (including canal area restoration) Young Young Farmer 39,963 40,593 79,926 81,186 crops bamboo 44.51 mu + 48.24 mu + Total 39,963 40,593 416,288.4 481,737 individuals individuals

B. Suicheng Water Supply Expansion Project, Jianning County In the Suicheng Water Supply Expansion Project, Jianning County, the actual amount of compensation for barren land was 381,700 yuan, 171,700 yuan more than planned; that for paddy field 46,800 yuan, consistent with the plan; that for dry land 42,966 yuan, 4,554 yuan less than planned; that for vegetable plot 22,500 yuan, consistent with the plan; and that for fruit trees 12,000 yuan, 6,000 yuan less than planned.

Table 4-8 Difference between compensation fees for resettlement and land acquisition of the Suicheng Water Supply Expansion Project, Jianning County and the resettlement and land acquisition plan Quantity (mu or Amount of Land type Ownership individual) compensation (yuan) Planned Actual Planned Actual Barren Village 20 36.35 210,000 381,700 land collective Paddy Farmer 15.6 15.6 46,800 46,800 field Dry land Farmer 21.6 19.53 47,520 42,966 Vegetable Farmer 7.5 7.5 22,500 22,500 plot 120 80 Fruit trees Farmer 18,000 12,000 individuals individuals 64.7 mu + 78.98 mu Total 120 + 80 344,820 505,966 individuals individuals

C. Meizhou Water Supply Project In the Meizhou Water Supply Project, the actual amount of compensation for permanently acquired arable land 336,000 yuan, consistent with the plan; and that for temporarily occupied arable land 30,000 yuan, consistent with the plan.

Table 4-9 Difference between compensation fees for resettlement and land acquisition of the Meizhou Water Supply Project and the resettlement and land acquisition plan 13 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China

Quantity (mu or Amount of Land Ownership individual) compensation (yuan) type Planned Actual Planned Actual

Arable Farmer 12 12 336,000 336,000 land Arable Farmer 24 24 30,000 30,000 land Total 36 36 366,000 366,000

D. Dongxi Water Supply Project, Xianyou County In the permanently acquired land of the Dongxi Water Supply Project, Xianyou County, the actual amount of compensation for sloping field was 216,000 yuan, 49,500 yuan more than planned; and that for dry land 53,200 yuan, 7,000 yuan more than planned. In the temporarily occupied land, the actual amount of compensation for paddy field was 191,100 yuan, 11,700 yuan less than planned; that for dry land 185,020 yuan, 2,860 yuan more than planned; that for shrub forest 104,250 yuan, 4,650 yuan more than planned, and that for fruit trees 397,200 yuan, 358,600 yuan more than planned.

Table 4-10 Difference between compensation fees for resettlement and land acquisition of the Dongxi Water Supply Project, Xianyou County and the resettlement and land acquisition plan Amount of Quantity (mu or individual) Land type Ownership compensation (yuan) Planned Actual Planned Actual Permanent Sloping 11.1 10.8 166,500 216,000 land field acquisition Dry land 2.1 1.9 46,200 53,200 Paddy Farmer 67.6 63.7 202,800 191,100 Temporary field land Dry land Farmer 82.8 84.1 182,160 185,020 occupation Shrub 66.4 69.5 99,600 104,250 forest Fruit trees Farmer 1930 1986 38,600 397,200 230 mu + 230 mu + Total 1,930 1,986 735,860 1,146,770 individuals individuals

E. Tingzhou Hydropower Development Project In the permanently acquired land of the Tingzhou Hydropower Development Project, the actual amount of compensation for dry land was 80,600 yuan, 21,080 yuan more than planned; that for woodland 772,800 yuan, consistent with the plan; that for paddy field 101,400 yuan, 7,800 yuan more than planned; and that for flood land 203,200 yuan, consistent with the plan. In the temporarily occupied land, the actual amount of compensation for paddy field was 126,525 yuan, 14 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China 4,725 yuan less than planned; that for woodland 7,750 yuan, 3,250 yuan more than planned, that for fruit trees 29,760 yuan, 3,660 yuan more than planned; that for forest trees 12,060 yuan, 60 yuan more than planned; and that for bamboos 11,375 yuan, 945 yuan less than planned.

Table 4-11 Difference between compensation fees for resettlement and land acquisition of the Tingzhou Hydropower Development Project and the resettlement and land acquisition plan

Ownershi Quantity (mu or individual) Amount of compensation (yuan) Land type p Planned Actual Planned Actual

Dry land Farmer 3.1 3.1 59,520 80,600

Permanent Woodland Collective 96.6 96.6 772,800 772,800 land acquisition Paddy field 3.9 3.9 93,600 101,400 Flood land 25.4 25.4 203,200 203,200

Temporary Paddy field Farmer 25 24.1 131,250 126,525 land occupation Woodland Collective 3 3.1 4,500 7,750 Fruit trees Farmer 87 93 26,100 29,760

Forest Collective 60 67 12,000 12,060

Bamboo Farmer 352 325 12,320 11,375

157 mu + 499 156.2 mu + 485 Total 1,315,290 1,345,470 individuals individuals

5. Implementation of Resettlement and Land Acquisition Policies 5.1 Policies and regulations on resettlement and land acquisition In order to carry through the resettlement and land acquisition policies comprehensively and properly, and ensure successful resettlement and land acquisition work, the project team has identified the following policy principles in accordance with the Land Administration Law of the People’s Republic of China (1998), the local regulations and the ADB policies on resettlement: (1) Negative impacts should be minimized; (2) Resettlement/compensation should be conducted so that the affected population can at least restore the standard of living prior to project implementation; (3) The options of compensation and the resettlement and land acquisition plan should be so designed that the affected population has full rights to information/consultation, and is consulted with; (4) The affected properties should be compensated for in strict conformity with the compensation rates; and (5) Full compensation and assistance should be offered before land acquisition.

5.2 Implementation of Resettlement and Land Acquisition Policies According to the policy principles of resettlement and land acquisition established by the

15 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China project team, a field survey was conducted during the preliminary design and planning stage of the subprojects to minimize the number of affected households in consideration of actual topography; during land measurement, compensation for land acquisition and collection of comments on land acquisition, door-to-door communication and consultation was conducted, without disturbing the regular order of life of households; during land acquisition, publicity and public consultation was conducted properly to make the public know the necessity of the Project and support work related to the Project positively; since no public panic arose from any unnecessary public opinion, the negative impacts of the Project were minimized; compensation fees for land acquisition were disbursed in strict conformity with the rates agreed on with the households, and no fund was retained or embezzled, and full compensation and assistance had been offered before land acquisition.

6. Income and Livelihood Restoration Compensation for land acquisition and livelihood restoration are a key component of the resettlement and land acquisition work, and concerns the immediate interests the affected population, economic development and social stability. A scientific and rational compensation and assistance system is an important indicator of implementing a scientific outlook on development in all aspects and building a harmonious socialist society. With the principles of protecting the lawful rights and interests of the affected population and maintaining social stability, the Research Institute of Agricultural Economy, FAAS has evaluated the compensation work in the resettlement and land acquisition work, with focus on the rationality of compensation rates, and the disbursement and use of compensation fees.

6.1 Compensation for resettlement and land acquisition 6.1.1 Compensation rates of resettlement and land acquisition The compensation rates for land acquisition of the Project were fixed on the basis of “giving more, taking less and loosening control”, and a high level of flexibility was applied in practice, so that not only the interests of the affected households could be maintained, but also issues related to unbalanced compensation and assistance could be solved to show the project team’s care for the displaced persons. (1) Compensation and assistance rates for land acquisition were improved and unified. In order to avoid inconsistency compensation and assistance rates in the same area or project, ensure the successful construction of the Project and maintain social stability, the same rates were applied in the same area. In addition, compensation rates varied from place to place depending on an area’s development level. (2) The scope of compensation and assistance for the displaced persons’ properties was expanded appropriately. Prevailing policies were drafted based on practical issues encountered during resettlement and land acquisition: First, after resettlement and land acquisition, scattered trees and crops belonging to the affected households out of the planning area that were damaged during construction were included in the scope of compensation for land acquisition. Second, a certain amount of compensation was provided for temporarily occupied land that subject to destructive damage during construction and could not be restored to the condition prior to construction despite of restoration measures taken after construction. Third, poor households

16 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China permanently affected by land acquisition were given an extra subsidy as the case may be.

6.1.2 Difference between actual compensation and the resettlement and land acquisition plan The compensation rates that varied greatly in the Project included the following: In the permanently acquired land of the Dongxi Water Supply Project, Xianyou County, the compensation rate for sloping field was increased to 20,000 yuan/mu from the planned level of 15,000 yuan/mu, and that for dry land increased to 28,000 yuan/mu from the planned level of 22,000 yuan/mu. In the permanently acquired land of the Tingzhou Hydropower Development Project, the compensation rate for dry land was increased to 26,000 yuan/mu from the planned level of 19,200 yuan/mu, and in the temporarily occupied land, the compensation rate for woodland was increased to 2,500 yuan/mu from the planned level of 1,500 yuan/mu. In the subprojects, the affected households were communicated with to take their interests well into account, and actual compensation rates were equivalent to or higher than the plan as the case may be. A. Gaotun Small Hydropower Station Project In the Gaotun Small Hydropower Station Project, the actual compensation rate of flood land was 7,560 yuan, with a multiple of 14, consistent with the plan; and that for paddy field 13,090 yuan, with a multiple of 14, consistent with the plan. In the temporarily occupied land, that for dry land 2,685 yuan, with a multiple of 3, consistent with the plan; and that for young bamboos 2 yuan, consistent with the plan.

Table 6-1 Gaotun Small Hydropower Station Project and the resettlement and land acquisition plan Permanent land acquisition Temporary land occupation Quantity Compensation Compensation Compensation Compensation Land Quantity (mu) type (mu/individual) multiple rate (yuan) multiple rate (yuan) Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Flood 34.75 37.38 14 14 7,560 7,560 land Paddy 4.56 4.56 14 14 13,090 13,090 field Dry land 5.2 6.3 3 3 2,685 2,685 Young 39,963 40,593 2 2 bamboo

B. Suicheng Water Supply Expansion Project, Jianning County In the permanently acquired land of the Suicheng Water Supply Expansion Project, Jianning County, the actual compensation rate for barren land was 10,500 yuan, with a multiple of 14, consistent with the plan. In the temporarily occupied land, the actual compensation rate for paddy field 3,000 yuan, with a multiple of 2, consistent with the plan; that for dry land 2200 yuan, with a multiple of 2, consistent with the plan; that for vegetable plot 3,000 yuan, with a multiple of 2, consistent with the plan, and that for that for fruit trees 150 yuan, consistent with the plan.

17 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China Table 6-2 Difference between actual compensation of Suicheng Water Supply Expansion Project, Jianning County and the resettlement and land acquisition plan Permanent land acquisition Temporary land occupation Quantity Compensation Compensation Compensation Compensation Land type Quantity (mu) (mu/individual) multiple rate (yuan) multiple rate (yuan) Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Barren land 20 36.35 14 14 10,500 10,500 Paddy field 15.6 15.6 2 2 3,000 3,000 Dry land 21.6 19.53 2 2 2,200 2,200 Vegetable 7.5 7.5 2 2 3,000 3,000 plot Fruit trees 120 80 150 150

C. Meizhou Water Supply Project In the Meizhou Water Supply Project, the actual compensation rate for permanently acquired arable land was 28,000 yuan, with a multiple of 14, consistent with the plan; and that for temporarily occupied arable land 1,250 yuan, with a multiple of 2, consistent with the plan.

Table 6-3 Difference between actual compensation of Meizhou Water Supply Project and the resettlement and land acquisition plan Permanent land acquisition Temporary land occupation Quantity Compensation Compensation Compensation Compensation Quantity (mu) Land type (mu/individual) multiple rate (yuan) multiple rate (yuan)

Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual

(Permanent) 12 12 14 14 28,000 28,000 arable land (Temporary) 24 24 2 2 1,250 1,250 arable land

D. Dongxi Water Supply Project, Xianyou County In the permanently acquired land of the Dongxi Water Supply Project, Xianyou County, the actual compensation rate for sloping field was 20,000 yuan, 5,000 yuan more than planned, with a multiple of 26.67, higher than planned; and that for dry land 28,000 yuan, 6,000 yuan more than planned, with a multiple of 25.45, higher than planned. In the temporarily occupied land, the actual compensation rate for paddy field was 3,000 yuan, with a multiple of 2, consistent with the plan; that for dry land 2,200 yuan, with a multiple of 2, consistent with the plan; that for woodland 1,500 yuan, with a multiple of 2, consistent with the plan; and that for fruit trees 120 yuan, 100 yuan more than planned.

Table 6-4 Difference between actual compensation of Dongxi Water Supply Project, Xianyou County and the resettlement and land acquisition plan Land type Permanent land acquisition Temporary land occupation

18 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China

Quantity Compensation Compensation Compensation Compensation Quantity (mu) (mu/individual) multiple rate (yuan) multiple rate (yuan) Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Sloping 11.1 10.8 20 26.67 15,000 20,000 field Dry land 2.1 1.9 20 25.45 22,000 28,000 Paddy 67.6 63.7 2 2 3,000 3,000 field Dry land 82.8 84.1 2 2 2,200 2,200 Woodland 66.4 69.5 2 2 1,500 1,500 Fruit trees 1,930 1,986 20 120

E. Tingzhou Hydropower Development Project In the permanently acquired land of the Tingzhou Hydropower Development Project, the actual compensation rate for dry land was 26,000 yuan, 6,800 yuan more than planned, with a multiple of 21.67, higher than planned; that for woodland 8,000 yuan, with a multiple of 16, consistent with the plan; that for paddy field 26,000 yuan, 2,000 yuan more than planned, with a multiple of 17.33, higher than planned; and that for flood land 8,000 yuan, consistent with the plan. In the temporarily occupied land, the actual compensation rate for paddy field was 5,250 yuan, with a multiple of 3.5, consistent with the plan; that for woodland 2,500 yuan, 1,000 yuan more than planned, with a multiple of 5.8, higher than planned; that for fruit trees 320 yuan, 20 yuan more than planned; that for woodland 180 yuan, 20 yuan less than planned; and that for bamboos 35 yuan, consistent with the plan.

Table 6-5 Difference between actual compensation of Tingzhou Hydropower Development Project and the resettlement and land acquisition plan Permanent land acquisition Temporary land occupation Quantity Compensation Compensation Compensation Compensation Land type Quantity (mu) (mu/individual) multiple rate (yuan) multiple rate (yuan) Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Planned Actual Dry land 3.1 3.1 16 21.67 19,200 26,000 Woodland 96.6 96.6 16 16 8,000 8,000 Paddy field 3.9 3.9 16 17.33 24,000 26,000 Flood land 25.4 25.4 16 14 8,000 8,000 Paddy field 25 24.1 3.5 3.5 5,250 5,250 Woodland 3 3.1 3.5 5.8 1,500 2,500 Fruit trees 87 93 300 320 Forest 60 67 200 180 Bamboo 352 325 35 35

19 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China 6.1.3 Disbursement of compensation fees The disbursement of compensation fees to the 297 households involved in land acquisition under the 5 subprojects was monitored, including 26 in the Gaotun Small Hydropower Station Project (23 affected by permanent land acquisition and 3 by temporary land occupation), 11 in the Suicheng Water Supply Expansion Project, Jianning County (all affected by temporary land occupation), 16 in the Meizhou Water Supply Project, 18 in the Dongxi Water Supply Project, Xianyou County (8 affected by permanent land acquisition and 10 by temporary land occupation), and 226 in the Tingzhou Hydropower Development Project (4 affected by permanent land acquisition and 222 by temporary land occupation). All households received full compensation at a time, and most of them are satisfied with the disbursement of compensation fees. 6.1.4 Use of compensation fees 197 households were subject to follow-up survey during external monitoring for the use of compensation fees, of which 106 used fees for agricultural production, small businesses and other means of income restoration, accounting for 53.8% of the sample; and 91 used fees for medical treatment, children’s education and daily expenditure, accounting for 46.2%.

6.2 Production restoration measures for resettlement and land acquisition The production restoration measures for resettlement and land acquisition include the following mainly: First, the affected households were employed temporarily during the construction period to increase their income; second, after the completion of the Project, jobs were offered to the affected households as maintenance staff of the Project; and third, after the completion of the Project, cheaper and more convenient hydropower was available locally, thereby improving local productivity and increasing farmers’ income. A. Gaotun Small Hydropower Station Project 35 people out of 15 affected households worked on the construction site as casual workers, and were paid 25 yuan/day each; the reservoir dam has improved irrigation conditions for 1,000 mu of downstream farmland, increased the income on such farmland from 400 yuan/mu to 1,000 yuan/mu, and increased the affected households’ income accordingly. B. Suicheng Water Supply Expansion Project, Jianning County During construction, temporary job opportunities were offered to the affected households preferentially, and a casual worker on the site was paid 25 yuan/day; benefiting from safe, reliable and convenient drinking water, the affected population’s waterborne diseases have been reduced and quality of life improved greatly; in addition, thanks to the improved infrastructure, the local industry has developed, and the affected population’s income has improved. C. Meizhou Water Supply Project The project provides safe, healthy and convenient drinking water to the local people, reducing the incidence of waterborne diseases and improving their quality of life greatly; thanks to the improved infrastructure, the local industry has developed, and the affected population’s income has improved. D. Dongxi Water Supply Project, Xianyou County The project has benefited the local people in four ways: First, safe, healthy and convenient drinking water was available, reducing the incidence of waterborne diseases and improving their quality of life greatly; second, job opportunities were available during construction to increase their income; third, economic construction was strengthened through water quality improvement,

20 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China increasing the income of the affected households accordingly; and fourth, thanks to the improved infrastructure, local industrial and agricultural products have developed, thereby increasing the local people’s income. E. Tingzhou Hydropower Development Project 40 people out of 18 affected households worked on the construction site as casual workers, and were paid 25 yuan/day each. Moreover, 3 regular jobs as operation and maintenance workers of the hydropower station were offered to 3 materially affected households (one per household), who received free training and were paid over 12,000 yuan/year each.

6.3 Comparison of residents’ income before and after resettlement According to the survey of 289 affected households, the income of 289 households (100%) increased after land acquisition, indicating that land acquisition did not affect their livelihoods. On the contrary, the Project has helped increased their income to some extent.

Table 6-6 Comparison of residents’ income before and after resettlement Number Average income (yuan/Yr) Number of of Before After land households for Project affected After land land acquisition at long term househo acquisition acquisition end of 2011 affection lds Gaotun Small Hydropower Station 26 2,566 3,566 4866 None Project Suicheng Water Supply Expansion Project, 17 3,080 3,190 6310 None Jianning County Meizhou Water Supply 16 2,850 4,410 7205 None Project Dongxi Water Supply 212 3,380 3,910 6590 None Project, Xianyou County Tingzhou Hydropower 18 3565 4050 5960 None Development Project Note: The post-land acquisition income of the Gaotun Small Hydropower Station Project was the average of 2006-2008; that of the Suicheng Water Supply Expansion Project, Jianning County was that in 2008; that of the Meizhou Water Supply Project was the average of 2006-2008; that of the Dongxi Water Supply Project, Xianyou County was that in 2008; and that of the Tingzhou Hydropower Development Project was that in 2008.

According to the questionnaire or oral survey, in the Gaotun Small Hydropower Station Project, 26 households were affected, whose average annual income was 2,566 yuan before land acquisition and all household annual income was increased. Average annual income at end of 2011 was increased to 4,866 yuan.

In the Suicheng Water Supply Expansion Project, Jianning County, 17 households were 21 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China affected, whose average annual income was 3,080 yuan before land acquisition and 3,190 yuan after land acquisition, up 110 yuan, and annual income of households was increased. Average annual income at end of 2011 was increased to 6,310 yuan.

In the Meizhou Water Supply Project, 16 households were affected, whose average annual income was 2,850 yuan before land acquisition and 4,410 yuan after land acquisition, up 1,560 yuan, and annual income of households was increased. Average annual income at end of 2011 was increased to 7,205 yuan.

In the Dongxi Water Supply Project, Xianyou County, 212 households were affected, whose average annual income was 3,380 yuan before land acquisition and 3,910 yuan after land acquisition, up 530 yuan, and annual income of households was increased. Average annual income at end of 2011 was increased to 6,590 yuan.

In the Tingzhou Hydropower Development Project, 18 households were affected, whose average annual income was 3565 yuan before land acquisition and 4,050 yuan after land acquisition, up 1,509 yuan, and annual income of households was increased. Average annual income at end of 2011 was increased to 5960 yuan

7. Public Participation and Appeal Mechanism 7.1 Public participation The project team disclosed the following information on the land acquisition work by means of billboard and door-to-door visit to the affected population: ① the laws, regulations and policies on land acquisition; ② quantities of physical properties affected by land acquisition; ③ compensation rates for land acquisition; ④ the government plan for production and income restoration for the affected households after land acquisition; and ⑤ the appeal procedure for resettlement and land acquisition. After disclosing land acquisition information, the project team organized face-to-face discussions with the affected households through village officials to listen to their opinions and suggestions, and adopted their rational suggestions on land acquisition, e.g., increasing compensation rates reasonably.

7.2 Appeals Since the compensation for land acquisition for the affected households varied greatly, complaints could hardly be avoided in practice. In order to ensure the affected households’ support for and understanding of the Project, the project team assigned a person to be responsible specifically for this and provided channels for the affected households to raise complaints and appeals. To ensure the right to appeal of the affected households in respect of land acquisition and resettlement, a detailed appeal mechanism was established within the policy framework of resettlement. There are three appeal channels for the Project: (1) A affected household may submit an oral or written appeal to the village committee or the

22 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China local PMO, and the project team shall be responsible for coordination; (2) If the affected household is dissatisfied with the coordination of the project team, it may submit the appeal to the local PMO or the specialized administrative agency; (3) If the affected household is dissatisfied with the disposition of the local PMO or the specialized administrative agency, it may submit a complaint letter to the competent county, municipal or provincial authorities, or file a suit in the County court. The monitoring results indicate that during the whole land acquisition process, the channels of appeals for resettlement and land acquisition were smooth, and the affected households were largely satisfied with the solutions to their complaints. Most of the complaints of the affected households about the Project were focused on under-registration and compensation rates, and the solutions of the project team to their oral appeals were satisfactory. There was no major complaint or appeal about compensation rates or mode.

8. Implementation of the Resettlement and Land Acquisition Work The monitoring results indicate that the land approval formalities of all the subprojects complied with the pertinent state provisions, and there were no violations such as land use before approval. 8.1 Land approval procedure A. Gaotun Small Hydropower Station Project Flood land and paddy field: approved by the Songxi County Government (SCPG Zong [2003] No.054) B. Suicheng Water Supply Expansion Project, Jianning County The 36.35 mu of barren land acquired permanently for construction was pre-approved by the Jianning County Land and Resources Bureau ([2006] No.020), and the Provincial People’s Government approved the farmland used for other purposes and acquired land of Jianning County with Document FPPG Land [2006] No.444 in November 2006. The woodland involved was reported to the Dept. of Forestry of Fujian Province for approval (FPFD Approval [2006] No.264). The land acquisition information was posted in Shuinan Village, Suicheng Town. The 42.63 mu of temporarily occupied land was measured by Xinxing Water Resources & Hydropower Co., Ltd. together with the Jianning County Land and Resources Bureau, the village committee and villagers according to the construction drawings, and a compensation agreement for temporary land occupation was signed and posted. The compensation fees were paid to the affected households in cash. The fruit trees acquired during construction were counted by Xinxing Water Resources & Hydropower Co., Ltd. (construction agency), the village committee and villagers on site, and a fruit tree compensation agreement was signed (the rate was fixed by the Jianning County Government) and posted. The compensation fees were paid to the affected households in cash. C. Meizhou Water Supply Project Meizhou Island Water Supply Company filed an application for land use, which was approved by the Meizhou Island Land and Resources Sub-bureau. The 12 mu of permanently acquired land was acquired by the Meizhou Island Administrative Committee and made available to Meizhou Island Water Supply Company. The 24 mu of temporarily occupied land was measured by Meizhou Island Water Supply Company together with the Meizhou Island Land and Resources

23 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China Sub-bureau, the Town Land Administrative Office, the village committee and villagers according to the construction drawings, and a compensation agreement for temporary land occupation was signed and posted. The compensation fees were paid to the affected households in cash. D. Dongxi Water Supply Project, Xianyou County Sloping field and dry land: ① Xianyou County Water Supply Company filed an application for land use; ② The Xianyou County Land and Resources Bureau approved the application ([2007] No.306); and ③ The land acquisition notice was posted. E. Tingzhou Hydropower Development Project Paddy field and dry land: approved by the Dept. of Land and Resources of Fujian Province ([2005] No.091) Woodland: approved by the Dept. of Forestry of Fujian Province with Document FPFD Approval [2005] No.022

8.2 Resettlement and land acquisition executing agencies A project team was organized under the Resettlement and Land Acquisition Management Office to lead the land acquisition work in all aspects. The block diagram of implementation of the resettlement and land acquisition work is as follows:

Resettlement and land Government, forestry and land/resources departments (Fujian Provincial People’s acquisition teams Government, Dept. of Forestry of Fujian Province, (county or township county governments, land and resources bureaus) level) Supervising agency Resettlement and land acquisition teams

Finance Resettlement Planning Internal monitoring

External monitoring Village committee, (Research Institute villagers of Agricultural Economy, FAAS)

8.3 Disbursement procedure of resettlement funds The disbursement procedure of compensation fees for land acquisition in the resettlement and land acquisition work of the Project was simple and practical. The disbursement process was orderly, and the supervision mechanism was lawful and effective. A. Gaotun Small Hydropower Station Project First, specialized technicians of the County Water Resources Bureau surveyed the range of land acquisition on site and posted the measuring results. Second, the affected households signed for confirmation. B. Suicheng Water Supply Expansion Project, Jianning County First, the Jianning County Land and Resources Bureau was responsible for the field

24 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China measurement and posting of the acquired land. Second, the compensation rates were approved by the Jianning County Land and Resources Bureau, and the Jianning County Land and Resources Bureau entered into a compensation agreement for land use with the affected households, who signed on the list of affected properties. Third, Xinxing Water Resources & Hydropower Co., Ltd. transferred the amount on the list of affected properties to the special account designated by the Jianning County Land and Resources Bureau, which then transferred the amount to the special account of the credit cooperative designated by Shuinan Village, Suicheng Town. Fourth, the village committees received cash from the credit cooperative according to the amount on the signed list of affected properties, and disbursed it to the affected households. C. Meizhou Water Supply Project First, the Meizhou Island PMO was responsible for supervision, Meizhou Island Water Supply Company, the Town Land Administrative Office and the Meizhou Island Land and Resources Sub-bureau was responsible for the field measurement and posting of the acquired land. Second, the compensation rates were approved by the Meizhou Island Land and Resources Sub-bureau, and Meizhou Island Water Supply Company entered into a compensation agreement for land use with the affected households, who signed on the list of affected properties. Third, the water supply company transferred the amount on the list of affected properties calculated by the Meizhou Island Land and Resources Sub-bureau to the special account of the credit cooperative designated by the Meizhou Town Government. Fourth, the village committees received cash from the credit cooperative according to the amount on the signed list of affected properties, and disbursed it to the affected households under the supervision of the Meizhou Island PMO. D. Dongxi Water Supply Project, Xianyou County First, the Xianyou County PMO was responsible for supervision, and Xianyou County Water Supply Company, the Town Land Administrative Office and the Xianyou County Land and Resources Bureau were responsible for the field measurement and posting of the acquired land. Second, the compensation rates were approved by the Xianyou County Land and Resources Bureau, and Xianyou County Water Supply Company entered into a compensation agreement for land use with the affected households, who signed on the list of affected properties. Third, Xianyou County Water Supply Company transferred the amount on the list of affected properties calculated by the Xianyou County Land and Resources Bureau to the passbooks of the affected households. E. Tingzhou Hydropower Development Project First, the Government and the Municipal Resettlement Administration employed specialized technicians for the field measurement and posting of the displaced persons’ affected properties. Second, the displaced persons confirmed the posted data and signed on the list of affected properties. Third, the Changting County PMO conducted resettlement monitoring, and the Yanggu Xiang Land Administrative Office was responsible for the management and disbursement of compensation fees, and distributed passbooks to the affected households. Fourth, the affected households received cash at the township credit cooperative. The monitoring results indicate that compensation fees were disbursed openly and

25 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China transparently in the resettlement and land acquisition work of the Project, in which the affected households participated adequately, the affected households’ opinions and suggestions were adopted, and the disbursement procedure and amount of compensation fees were recognized by the affected households.

8.4 Effectiveness of implementation of resettlement and land acquisition The project team drew on a set of successful experience in resettlement and land acquisition management, such as the financial management system for resettlement and land acquisition, and the internal administrative procedures for compensation rates for land acquisition and the resettlement and land acquisition organization, so that the resettlement work was conducted orderly. The resettlement and land acquisition management agencies at all levels carried through the state policies on resettlement and land acquisition carefully within their respective scope of responsibilities, and enacted many corresponding policies and measures for issues arising from their work. The implementation of these policies and measures ensured successful resettlement and land acquisition work, and also promoted the stability and development of the affected areas.

9. Conclusion and suggestions 9.1 Conclusion 1. The Research Institute of Agricultural Economy, FAAS conducted systematic monitoring and evaluation of the implementation process of resettlement and land acquisition, the disbursement of compensation fees for land acquisition, the production capacity and livelihood restoration of the affected population, information disclosure and public participation in an objective and fair manner. The whole monitoring process complied with the ADB requirements for external monitoring of resettlement and land acquisition. 2. Some of 39 subproject proposed during the project preparation were screened to be likely involved the resettlement including land acquisition or housing demolition. Of them , the short RPs for 10 subprojects were prepared in accordance with the ADB’s Involuntary Resettlement Policy, most of these subprojects were small hydropower schemes, while the remaining subprojects would not likely involve resettlement activities as they were only the expansion subprojects,. However, due to some 3 years delay of the start of the Project implementation the constructions of 9 in the 10 subprojects of which the short RPs were prepared were completed before the effectiveness of the ADB loan. They were not eligible for the ADB loan financing in accordance with the provisions set in the Project Agreement. The resettlements of these subprojects were implemented in line with the Government’s requirements related to the resettlement. . During the implementation of the Project, there were only5 subprojects involved in the arable land acquisition. In accordance with the ADB’s Involuntary Resettlement Policy, the short RPs for these subprojects were prepared, while the external monitoring for them were required to be carried out. 3. The resettlement and land acquisition work of the Project (5 subprojects) was conducted pursuant to the schedule of the resettlement and land acquisition plan, the overall progress of land acquisition was largely consistent with the resettlement and land acquisition plan, and

26 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China the progress of fund disbursement was largely in step with that of construction. In the practical land acquisition work, under the Suicheng Water Supply Expansion Subproject, land acquired was compensated for during construction in order to shorten the period of farmland being affected, so that land acquisition were not be completed on the expected schedule, which had the certain impacts on the construction completion of the subproject in time. In addition, in a few subprojects the funds for resettlement were not in place on the timing basis, due to the contingency which affected the progress of land acquisition in certain degree. However, these funds were fully paid to farmer households finally and the constructions of these subprojects were completed in time. 4. The actual area of land acquisition was generally consistent with the plan, and there were some variations in practice for the following three reasons mainly: First, part of the acquired land was under-registered; second, variations of the construction plan resulted in variations in the actually affected land area or quantity of young crops; for example, 16.35 mu of additional barren land was acquired permanently in the Suicheng Water Supply Expansion Project, Jianning County due to the construction of the Project; and third, there were numerous young bamboos, leading to statistical difficulties. 5. The land acquisition process was conducted according to the relevant systems. The compensation system for land acquisition established in the Land Administration Law was further amended and improved to ensure that the affected households could be compensated for reasonably, and that compensation fees could be available to them on schedule. All compensation rates exceeded those promised to ADB, which was good to the protection of the affected households’ rights, and the restoration and improvement of their livelihoods and production capacity. According to the questionnaire or oral survey, the production capacity and livelihoods of the affected population were well restored after land acquisition. The income of all the 289 affected households surveyed increased after land acquisition. 6. Internal and external financial review: All compensation funds under the resettlement and land acquisition plan were paid by county land acquisition offices directly to the affected collectives and individuals, in which those for acquired land and other affected facilities had been paid to the communities and individuals concerned before land acquisition. To ensure the successful implementation of the resettlement and land acquisition plan, the PMOs should establish an auditing mechanism at all levels so that all funds can be used for intended purposes. In addition, the village committees’ use of collective compensation fees should also be subject to annual auditing. 7. Information disclosure and transparency: To ensure the successful conduct of the resettlement and land acquisition work and the protection of the affected households’ interests, public meetings were held with the affected population to explain or discuss the applicable laws, regulations, policies, compensation rates, land compensation rates and calculation methods, economic restoration measures, the use of compensation fees and matters of the Project involving the interests of villages and the public.

9.2 Suggestions It is recommended that proper supports and assistances on the production capacity restoration and sustainable development should be provided by the concerned government departments in corporation with the ongoing programs for constructions of new socialism countryside and poverty

27 External Monitoring Report of the Resettlement and Land Acquisition Work under the Fujian Water and Soil Conservation Project (Phase 2), China alleviation to those APs whose livelihood were materially affected.

Note: The Research Institute of Agricultural Economy, FAAS monitored and evaluated the resettlement and land acquisition process of the Project scientifically, precisely and objectively, and collected data and information on resettlement and land acquisition by means of field survey and interview, etc. as the basis of study and evaluation of the resettlement and land acquisition work. It would report existing or potential issues during implementation, and suggest solutions to the project owners, the resettlement and land acquisition executing agencies and the PMOs so that to promote the continual rehabilitation of effected households .

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