Social Monitoring Report

Project Number: 39038 15 September 2007

PRC: ROAD NETWORK DEVELOPMENT PROJECT External Monitoring and Evaluation Report (No. 2)

Prepared by: Winlot Consulting Ltd. , People’s Republic of

For Heilongjiang Province - Road Construction Project Linquan Project Construction Management Office

This report has been submitted to ADB by Heilongjiang Province Jixi-Nehe Road Construction Project Linquan Project Construction Management Office and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

ADB financed

Heilongjiang Road Network Development Project

External Monitoring and Evaluation Report (No.2)

Winlot Consulting Ltd. September 15, 2007

1

Content

1 THE SCOPE AND METHODOLOGY OF THE SECOND

EXTERNAL MONITORING AND EVALUATION...... 8

1.1 THE SCOPE AND PERIOD OF THE SECOND EXTERNAL M&E ...... 8 1.2 THE METHODOLOGY OF THE SECOND M&E ...... 8 1.3 LAWS AND POLICES FOLLOWED BY THE M&E...... 9

2 THE PROGRESS OF LAND ACQUISITION AND HOUSE

DEMOLITION, RESETTLEMENT AND THE PAYMENT OF

COMPENSATION FEES...... 11

2.1 THE PROGRESS OF LAND ACQUISITION AND HOUSE DEMOLITION ...... 11 2.2 SUMMARY OF COMPENSATION FUND IN PLACE FOR LAND ACQUISITION AND HOUSE DEMOLITION ...... 15 2.3 VIEWS OF M&E THIS TIME ON THE PROGRESS OF LAND ACQUISITION AND HOUSE DEMOLITION ...... 19

3 RESETTLEMENT INSTITUTIONS ...... 21

4 THE IMPLEMENTATION OF LAND ACQUISITION AND

RESETTLEMENT OF CITY...... 22

4.1 IDENTIFICATION OF THE SCOPE OF THE ACQUIRED LAND...... 22 4.2 COMPENSATION STANDARD OF TIELI CITY FOR LAND ACQUISITION ...... 22 4.3 THE PROGRESS OF LAND ACQUISITION OF TIELI CITY ...... 25 4.4 THE PROGRESS OF LAND COMPENSATION FEES PAYMENT OF TIELI CITY...... 26 4.5 IDENTIFICATION OF THE SCOPE OF HOUSE DEMOLITION OF TIELI CITY...... 28 4.6 COMPENSATION STANDARD FOR HOUSE DEMOLITION OF TIELI CITY...... 28 4.7 THE PROGRESS OF HOUSE DEMOLITION OF TIELI CITY...... 34 4.8 CONCLUSION OF THE M&E FOR THE LAND ACQUISITION AND HOUSE DEMOLITION OF TIELI CITY ...... 34

5 THE IMPLEMENTATION OF LAND ACQUISITION AND

2 RESETTLEMENT OF QING’AN COUNTY ...... 36

5.1 IDENTIFICATION OF THE SCOPE OF THE ACQUIRED LAND ...... 36 5.2 COMPENSATION STANDARD OF QING’AN COUNTY FOR LAND ACQUISITION.36 5.3 THE PROGRESS OF LAND ACQUISITION OF QING’AN COUNTY ...... 39 5.4 THE PROGRESS OF LAND COMPENSATION FEES PAYMENT OF QING’AN COUNTY 41 5.5 IDENTIFICATION OF THE SCOPE OF HOUSE DEMOLITION OF QING’AN COUNTY 43 5.6 COMPENSATION STANDARD FOR HOUSE DEMOLITION OF QING’AN COUNTY43 5.7 THE PROGRESS OF HOUSE DEMOLITION OF QING’AN COUNTY...... 44 5.8 CONCLUSION OF THE M&E FOR THE LAND ACQUISITION AND HOUSE DEMOLITION OF QING’AN COUNTY...... 44

6 THE IMPLEMENTATION OF LAND ACQUISITION AND

RESETTLEMENT OF ...... 45

6.1 IDENTIFICATION OF THE SCOPE OF THE ACQUIRED LAND ...... 45 6.2 COMPENSATION STANDARD OF SUILING COUNTY FOR LAND ACQUISITION..46 6.3 THE PROGRESS OF LAND ACQUISITION OF SUILING COUNTY ...... 47 6.4 THE PROGRESS OF LAND COMPENSATION FEES PAYMENT OF SUILING COUNTY 50 6.5 IDENTIFICATION OF THE SCOPE OF HOUSE DEMOLITION OF SUILING COUNTY52 6.6 COMPENSATION STANDARD FOR HOUSE DEMOLITION OF SUILING COUNTY52 6.7 THE PROGRESS OF HOUSE DEMOLITION OF SUILING COUNTY ...... 55 6.8 CONCLUSION OF THE M&E FOR THE LAND ACQUISITION AND HOUSE DEMOLITION OF SUILING COUNTY...... 56

7 THE IMPLEMENTATION OF LAND ACQUISITION AND

RESETTLEMENT OF CITY ...... 57

7.1 IDENTIFICATION OF THE SCOPE OF THE ACQUIRED LAND ...... 57 7.2 COMPENSATION STANDARD OF HAILUN CITY FOR LAND ACQUISITION ...... 57 7.3 THE PROGRESS OF LAND ACQUISITION OF HAILUN CITY...... 59 7.4 THE PROGRESS OF LAND COMPENSATION FEES PAYMENT OF HAILUN CITY61 7.5 IDENTIFICATION OF THE SCOPE OF HOUSE DEMOLITION OF HAILUN CITY ....63 7.6 COMPENSATION STANDARD FOR HOUSE DEMOLITION OF HAILUN CITY...... 63 7.7 THE PROGRESS OF HOUSE DEMOLITION OF HAILUN CITY ...... 63 7.8 CONCLUSION OF THE M&E FOR THE LAND ACQUISITION AND HOUSE DEMOLITION OF HAILUN CITY ...... 64

3 8 THE IMPLEMENTATION OF LAND ACQUISITION AND

RESETTLEMENT OF ...... 65

8.1 IDENTIFICATION OF THE SCOPE OF THE ACQUIRED LAND ...... 65 8.2 COMPENSATION STANDARD OF BAIQUAN COUNTY FOR LAND ACQUISITION 65 8.3 THE PROGRESS OF LAND ACQUISITION OF BAIQUAN COUNTY ...... 66 8.4 THE PROGRESS OF LAND COMPENSATION FEES PAYMENT OF BAIQUAN COUNTY 69 8.5 IDENTIFICATION OF THE SCOPE OF HOUSE DEMOLITION OF BAIQUAN COUNTY 71 8.6 COMPENSATION STANDARD FOR HOUSE DEMOLITION OF BAIQUAN COUNTY71 8.7 THE PROGRESS OF HOUSE DEMOLITION OF BAIQUAN COUNTY...... 72 8.8 CONCLUSION OF THE M&E FOR THE LAND ACQUISITION AND HOUSE DEMOLITION OF BAIQUAN COUNTY...... 72

9 THE IMPLEMENTATION OF LAND ACQUISITION AND

RESETTLEMENT OF ...... 73

9.1 IDENTIFICATION OF THE SCOPE OF THE ACQUIRED LAND ...... 73 9.2 COMPENSATION STANDARD OF LINKOU COUNTY FOR LAND ACQUISITION...73 9.3 THE PROGRESS OF LAND ACQUISITION OF LINKOU COUNTY ...... 74 9.4 THE PROGRESS OF LAND COMPENSATION FEES PAYMENT OF LINKOU COUNTY 76 9.5 IDENTIFICATION OF THE SCOPE OF HOUSE DEMOLITION OF LINKOU COUNTY78 9.6 COMPENSATION STANDARD FOR HOUSE DEMOLITION OF LINKOU COUNTY 78 9.7 THE PROGRESS OF HOUSE DEMOLITION OF LINKOU COUNTY...... 79 9.8 CONCLUSION OF M&E FOR THE LAND ACQUISITION AND HOUSE DEMOLITION OF LINKOU COUNTY ...... 80

10 THE IMPLEMENTATION OF LAND ACQUISITION AND

RESETTLEMENT OF ...... 81

10.1 IDENTIFICATION OF THE SCOPE OF THE ACQUIRED LAND...... 81 10.2 COMPENSATION STANDARD OF FANGZHENG COUNTY FOR LAND ACQUISITION 81 10.3 THE PROGRESS OF LAND ACQUISITION OF FANGZHENG COUNTY ...... 82 10.4 THE PROGRESS OF LAND COMPENSATION FEES PAYMENT OF FANGZHENG COUNTY 85 10.5 IDENTIFICATION OF THE SCOPE OF HOUSE DEMOLITION OF FANGZHENG

4 COUNTY 87 10.6 COMPENSATION STANDARD FOR HOUSE DEMOLITION OF FANGZHENG COUNTY 87 10.7 THE PROGRESS OF HOUSE DEMOLITION OF FANGZHENG COUNTY...... 87 10.8 CONCLUSION OF M&E FOR THE LAND ACQUISITION AND HOUSE DEMOLITION OF FANGZHENG COUNTY ...... 87

11 THE IMPLEMENTATION OF LAND ACQUISITION AND

RESETTLEMENT OF ...... 89

11.1 IDENTIFICATION OF THE SCOPE OF THE ACQUIRED LAND...... 89 11.2 COMPENSATION STANDARD OF TONGHE COUNTY FOR LAND ACQUISITION89 11.3 THE PROGRESS OF LAND ACQUISITION OF TONGHE COUNTY...... 90 11.4 THE PROGRESS OF LAND COMPENSATION FEES PAYMENT OF TONGHE COUNTY 92 11.5 IDENTIFICATION OF THE SCOPE OF HOUSE DEMOLITION OF TONGHE COUNTY 94 11.6 COMPENSATION STANDARD FOR HOUSE DEMOLITION OF TONGHE COUNTY 94 11.7 THE PROGRESS OF HOUSE DEMOLITION OF TONGHE COUNTY ...... 94 11.8 CONCLUSION OF M&E FOR THE LAND ACQUISITION AND HOUSE DEMOLITION OF TONGHE COUNTY...... 94

12 IMPLEMENTATION OF LAND ACQUISITION AND HOUSE

DEMOLITION AND RESETTLEMENT OF ALL RELATED FOREST

ADMINISTRATION BUREAU...... 96

13 CONCLUSION AND RECOMMENDATION ...... 97

13.1 CONCLUSION ...... 97 13.2 RECOMMENDATION...... 98

5 Lists of Tables Table 1 Progress of the Resettlement Work (up to Jun. 30, 2007) ...... 12 Table 2 Summary of Resettlement Compensation Fund...... 15 Table 3 Detail of Resettlement Compensation Fund...... 16 Table 4 Detail of Resettlement Compensation Fund...... 17 Table 5 Detail of Resettlement Compensation Fund...... 17 Table 6 Detail of Resettlement Compensation Fund...... 18 Table 7 Detail of Resettlement Compensation Fund...... 18 Table 8 the Arrangement of the Compensation for...... 24 Table 9 the Compensation Standard for Other Land Acquisition of Tieli City...... 25 Table 10 Statistic of Actual Land Acquisition of...... 26 Table 11 Statistic of the Land Compensation Fees Payment ...... 27 Table 12 Details of the Actual Scope of House Demolition and Related Compensation Standard of Tieli City (by households)...... 29 Table 13 Compensation Standard for Demolished House...... 32 Table 14 the Arrangement of the Compensation for...... 37 Table 15 the Compensation Standard for Other Land Acquisition...... 38 Table 16 Statistic of Actual Land Acquisition of...... 39 Table 17 Statistic of the Land Compensation Fees Payment ...... 42 Table 18 Statistic of Forest Land Compensation Fees ...... 43 Table 19 The Arrangement of the Compensation for ...... 47 Table 20 Statistic of Actual Land Acquisition of...... 49 Table 21 Statistic of the Land Compensation Fees Payment...... 51 Table 22 Statistic of Forest Land Compensation Fees ...... 51 Table 23 the Actual Scope of Demolished Houses and the Detailed Compensation Fees of Suiling County ...... 53 Table 24 Compensation Standard for the Demolished Houses...... 55 Table 25 The Arrangement of the Compensation for ...... 58 Table 26 Statistic of Actual Land Acquisition of...... 60 Table 27 Statistic of the Land Compensation Fees Payment ...... 62 Table 28 Statistic of Forest Land Compensation Fees ...... 63 Table 29 the Arrangement of the Compensation for...... 65 Table 30 Statistic of Actual Land Acquisition of...... 68 Table 31 Statistic of the Land Compensation Fees Payment ...... 70 Table 32 Statistic of Forest Land Compensation Fees ...... 71 Table 33 the Arrangement of the Compensation for ...... 74 Table 34 Statistic of Forest Land Compensation Fees ...... 75 Table 35 Statistic of Actual Land Acquisition of...... 75 Table 36 Statistic of the Land Compensation Fees Payment...... 77 Table 37 Details of the Actual Scope of House Demolition and Related Compensation Standard of Linkou County ...... 78

6 Table 38 Details of the Actual Scope of Attachments ...... 79 Table 39 Land Compensation Standard of Fangzheng County ...... 82 Table 40 Statistic of Forest Land Compensation Fees ...... 83 Table 41 Statistic of Actual Land Acquisition of...... 84 Table 42 Statistic of the Land Compensation Fees Payment ...... 86 Table 43 Land Compensation Standard of Tonghe County...... 90 Table 44 Statistic of Forest Land Compensation Fees ...... 90 Table 45 Statistic of Actual Land Acquisition of...... 91 Table 46 Statistic of the Land Compensation Fees Payment ...... 93

7 1 The Scope and Methodology of the Second External Monitoring and Evaluation

1.1 The Scope and Period of the Second External M&E

1. The scope of this No.2 M&E is to monitor and evaluate the conditions of land acquisition, house demolition and resettlement induced by the main highway from Linkou County to Baiquan County and the linking roads including eight cities and counties (Linkou County, Fangzheng County, Tonghe County, Tieli City, Suiling County, Hailun County, Qing’an County and Baiquan County) and Taoshan Forest Administration Bureau.

2. According to the M&E plan, M&E team implemented the second M&E survey for the land acquisition and house demolition and resettlement induced by the main road construction and the linking roads construction from Jun. 24 to Aug. 12 of 2007. At Sep. 15, 2007, M&E team finished this M&E report. The period of M&E this time increased 2 weeks, because it was rained frequently within the period of M&E this time, the space length of this highway is 800km and the actual roundabout travel length for the survey is about 1,600km, the traffic condition is bad because many roads are broken induced by the project construction and many officials and interviewees were not present at that time.

3. The datum of M&E this time is up to Jun. 30, 2007. M&E team, essentially, did the work through comparing such datum with the datum of RP.

1.2 The Methodology of the Second M&E

4. The methodology adopted by M&E this time includes referring to relevant datum, interviewing with persons responsible of relevant departments and field study. The focus points of M&E this time are the progress of resettlement, the use of resettlement fund, the resettlement policy adopted and resettlement institutions and to evaluate resettlement quality of the project through interviewing with affected persons and officials and the way of field study.

5. Linq uan Highway Improvement Project was started at the beginning of May, 2007 as the climate of Heilongjiang Province is special and the construction period only concentrates on the period from May to October. As a result of that, during the period of M&E this time, all staffs of the PMO devoted their energy into the work of the project administration, resettlement and coordination of house demolition, and had no time to

8 summarize the datum which showed the progress of the project construction and resettlement work. Up to Aug. 12, 2007, the PMO still could not provide the datum that showed the progress of the project construction and the payment of resettlement fees.

6. The datum obtained by M&E this time are composed by the achievements of the interview with the departments responsible for land acquisition and house demolition of all project cities and counties (such as national land resource bureau, traffic administration bureau and construction administration bureau, etc.), the statistic showing the summary of the progress of land acquisition and house demolition and the payment of land compensation fund, and the investigation with the samples.

7. Therefore, the datum obtained by M&E this time are mainly from the statistic that showed the progress of land acquisition and house demolition and the payment of resettlement fund, which are offered by the departments responsible for land acquisition and house demolition. It is anticipated that the M&E next time can further analyze and evaluate the progress of the project construction and the work of resettlement, at the M&E next time is in winter and the EA can have sufficient time to calculate and summarize relevant datum.

8. Up to Jun. 30, 2007, the work of land acquisition and house demolition induced by the linking roads construction had not been started, so there is no any surveyed datum about it.

1.3 Laws and Polices Followed by the M&E

9. Laws and polices followed by the M&E are shown as the following:

a. Land Administration Law of PRC (implemented from Jan. 1, 1999 and revised in Mar, 2004); b. Forest Administration Law of PRC (implement from Apr. 29, 1998); c. Land Administration Regulation of Heilongjiang Province (implemented from Jan.1, 2000); d. Notification for Charging for the Four Items of Forest Land Occupation issued by Forest Administration Department, Price Administration Department and Financial Department of Heilongjiang Province (HLCLZ[1992]303, implemented from Dec. 2, 1999); e. Regulation of Heilongjiang Province on the Charge and Use of the Farmland Restoration Fees (HTZF[2001]111); f. Basic Farmland Protection Regulation of Heilongjiang Province (revised) (issued at Jun. 30, 1995);

9 g. Notification on the Charge Standard for the Farmland Restoration Fees issued by Land Administration Bureau, Financial Department, Price Administration Department and Agricultural Commission of Heilongjiang Province (issued at Aug. 12, 1991); h. Notification on the Charge of Land Administration Fees issued by Land Administration Bureau, Financial Department, Price Administration Department of Heilongjiang Province (issued at Jun. 20, 1995); i. Involuntary Resettlement Policy of ADB (issued in Nov. 1995) and Resettlement Handbook; j. The Standard for the Output Value of the Farmland of Heilongjiang Province (HTZF[2000]36); k. Resettlement Plan of Road Network Development Project of Heilongjiang Province (Communication Department of Heilongjiang Province, Feb. 24, 2006); l. In April, 2007, real estate evaluation and consultation companies that have relevant qualification evaluate the land compensation standards of Tieli City, Linkou County and Suiling County.

10 2 The Progress of Land Acquisition and House Demolition,

Resettlement and the Payment of Compensation Fees

2.1 The Progress of Land Acquisition and House Demolition

10. Up to Jun. 30, 2007, the work of land acquisition of the project had been finished and the project construction is implemented smoothly. Headquarters of Linquan Highway Project of Expressway Construction Bureau of Heilongjiang Communication Department signed the land compensation contract with Heilongjiang National Land Resource Department, and then the former one paid land compensation fees to the departments responsible for land acquisition and house demolition of all project cities and counties, and eventually these departments paid such compensation fees to affected persons according to relevant laws and regulation of PRC.

11. Headquarters of Linquan Highway Project of Expressway Construction Bureau of Heilongjiang Communication Department signed the contract for house and attachments compensation with people’s governments of all project cities and counties, and then the former one paid the compensation fees to the departments responsible for land acquisition and house demolition of all project cities and counties, and eventually these departments paid such compensation fees to affected persons according to relevant laws and regulation of PRC.

11 Table 1 Progress of the Resettlement Work (up to Jun. 30, 2007) Demolished Houses (unit: ㎡) Land Acquisition unit:mu Persons County(or No. RP removing to RP City) Actual Actual/Planned Actual Actual/Planned Planned the new Planned houses 1 Linkou County 1792 1753.33 98% 2058.16 2107.62 102% Fangzheng Un-demolished， 2 81 0% 1171.66 1109.72 95% County un-statistic Tonghe 3 5217.5 Un-demolished 0% 1577.21 1622.19 103% County 4 Tieli City 1320 3107.20 235% 881.26 807.24 92% Qing’an Un-demolished， 5 1153 0% 916.2 1010.84 110% County un-statistic 6 Suiling County 1006 4102.7 408% 1225.45 1545.36 126% Un-demolished， 7 Hailun City 154.5 0% 900.38 1012.83 112% un-statistic Baiquan Un-demolished， 8 319.8 0% 1130.4 1229.78 109% County un-statistic Total 11043.80 11260.61 102% 9860.72 10445.58 106% Linkou Forest 9 Administration 833.71 0% Bureau Forest 10 Administration 2144 0% 2465.71 0% Bureau Forest 11 Administration 783 0% 1751.741 0% Bureau Forest 12 Administration 619 0% 2 2857.072 0% Bureau Forest 13 Administration 181.978 0% Bureau Forest 14 Administration 50.27 0% Bureau Sub-total 3546.00 0.00 0% 8140.48 0.00 0% 15 Total 77% 18001.67 58%

12 Remark: the data is from the achievements of the investigation with the departments responsible for land acquisition and house demolition of all project cities and counties.

12. Up to Jun. 30, 2007, the work of permanent land acquisition for main road construction had been finished. The total area of the acquired land of the eight project cities and counties is 10,445.58mu, accounting for 106% of the estimated amount shown by the RP. The six forest administration bureaus had not started the work of summarizing land acquisition and could not offer relevant datum. All the affected farmers had received land compensation fees. The work of temporary land occupation and related houses demolition was still being consulted.

13. The total area of the demolished houses of Linkou County is 1,753.33 ㎡, which is 98% of the one shown by the RP. Houses of four households had been demolished, and the house-demolished persons rented houses or lived in the relatives’ houses. Up to Jun. 30, 2007, all the house-demolished persons had not constructed new houses with the main reason was that the new housing sites were not determined.

14. The total area of the demolished houses of Tieli City is 3,107.2 ㎡, which is 235% of the one shown by the RP. It is impossible to make clear why the actual area of the demolished houses is one time than the area shown by the RP, as the PMO did not offer the summary of the datum about house demolition. Up to Jun. 30, 2007, all the house-demolished persons had not constructed new houses with the main reason was that the new housing sites were not determined.

15. The total area of the demolished houses of Suiling County is 4,102.7 ㎡, which is 408% of the one shown by the RP. It is impossible to make clear why the actual area of the demolished houses is three time than the area shown by the RP, as the PMO did not offer the summary of the datum about house demolition. Up to Jun. 30, 2007, all the house-demolished persons had not constructed new houses with the main reason was that the new housing sites were not determined

16. Up to Jun. 30, 2007, real estate evaluation companies, which were entrusted by Tieli City, Linkou County and Suiling County, had re-evaluated the compensation standard for the demolished houses within the three districts. The evaluated compensation standards, which are all higher than the standard suggested by the RP, were promulgated to the public. However, the house-demolished persons were not satisfactory with such evaluated compensation standards. House demotion administration offices of the three districts are further consulting the compensation standard with those house-demolished persons to expect the house demolition contract to be achieved as soon as possible. These companies are respectively Heilongjiang Xinheng Real Estate Evaluation Co. Ltd. (entrusted by Tieli City), Linkou Sida Real Estate Evaluation Co. Ltd. (entrusted by Linkou

13 County), and Hexing Real Estate Evaluation Co. Ltd. (entrusted by Suiling County).

17. The compensation standard for house demolition of Baiquan County and Qing’an County and Hailun City is consulted between the project contractors who are entrusted by the PMO and house-demolished persons. It is anticipated that the actual compensation standard is higher than the one shown by the RP. Up to Jun. 30, 2007, the final compensation standard had not been determined, and M&E team had no way to investigate the compensation standard that all parts agreed with.

18. The compensation standard of Fangzheng County is directly between the project contractor and house-demolished persons with regarding to the compensation standard suggested by the RP. Government of Fangzheng County suggested that all types of demolished houses are compensated at the highest level of CNY 450 per ㎡, but those house-demolished persons supposed the standard is a little low and did not agree house demolition. Up to Jun. 30, 2007, the work of consultation was still being done, so M&E team also had no way to investigate the compensation standard that all parts agreed with.

19. Real Estate Administration Bureau of Tonghe County is responsible for house demolition. This bureau evaluated the compensation standard of the demolished houses. However, the evaluated compensation standard is over 40% than the compensation standard shown by the RP, that is, the house compensation for Tonghe county should add over CNY 10 million for the house demolition, which is inacceptable for EA. As a result of that, the compensation standard is still consulted and the work of house demolition is not started. M&E team also had no way to investigate the compensation standard that all parts agreed with.

20. Up to Jun. 30, 2007, the work of house demolition of the eight cities and counties had not been started, the main reason of which is that house-demolished persons were still consulting the compensation standard with the local departments responsible for house demolition and related contract could not be achieved. However, as the amount of demolished houses is limited and those houses to be demolished are not located in the key section of the project construction, it is impossible to bring negative impact on the project construction temporarily.

21. According to the investigation, up to Jun. 30, 2007, there were two house-demolished households moving into the new houses in Taoshan Forest Administration Bureau. The two households engage in small-scaled business. In order to avoid the negative impacts induced by the project construction on their business, they earlier construct their new houses by using their own money but not the compensation

14 fees (they have not gotten). Up to Jun. 30, 2007, Taoshan Forest Administration Bureau had not achieved house demolition contract with other house-demolished households.

22. The work of house demolition is delayed for 2 months compared with time regulated by the RP. Although the delayed house demolition has not bring negative impacts on the project construction, it can be anticipated that the work of new house construction will delay for 4 months (to the end of September 2007) as the final house demolition compensation contract is not timely achieved and the procedure of housing sites is complex. If relevant measures are not adopted at present, most house-demolished persons cannot construct new houses before the winter of 2007 and the project construction in 2008 will be affect to some extent.

2.2 Summary of Compensation Fund In place for Land Acquisition and House Demolition

23. The resettlement compensation fund are shown as Table 2 to Table 7. It is known from Table 2, the PMO has paid CNY 74.70 million as the compensation fund for permanent land acquisition to departments responsible for land acquisition and house demolition of all project cities and counties, accounting for 49% of the budget shown by the RP; CNY 6.17 million as the compensation fund for temporary land occupation, accounting for 83% of the budget; CNY 7.51 million as the compensation fund for house demolition, accounting for 128% of the budget and; CNY 10.85 million, accounting for 19% of the budget. Although the rate of compensation fund in place for land acquisition is only 49%, the work of land acquisition has been finished. The rate of compensation fund in place for house demolition is 128%, which shows that the compensation standard for house demolition is higher than the one regulated by the RP. However, house-demolished persons still believe such compensation standard is a little lower than they expected and do not accept house demolition. So the local government should strength the work of consultation for house demolition and accept the compensation standard evaluated by the real estate evaluation companies so as to start the work of house demolition as soon as possible and reduce negative impact on further project construction.

Table 2 Summary of Resettlement Compensation Fund of the Project (up to Jun. 30, 2007) Unit: ‘000 CNY Total Item Planned In place In place / Planned Permanent Land 151,643.00 74,695.36 49%

15 Acquisition Temporary Land 7,416.40 6,167.14 83% Occupation Demolished House 5,887.00 7,507.24 128% Compensation Forest Land Compensation 56,389.10 10,847.45 19% Sub-total 221,335.50 99,217.18 45% Remark: the data is from statistic of departments responsible for land acquisition and house demolition of all project cities and counties. The fund in place is the fund that the PMO has been paid, but not the fund that has been paid to land-acquired persons and house-demolished persons.

24. The rates of compensation fees in place for permanent land acquisition of Qing’an County and Suiling County are the highest, which is respectively 105% and 89%, and the rate of paid-in compensation fees for temporary land occupation of Suiling Countiy is the highest, which is 162%.

Table 3 Detail of Resettlement Compensation Fund of the Project (up to Jun. 30, 2007) Unit: ‘000 CNY Tieli City Qing’an County Item In place / In place / Planned In place Planned In place Planned Planned Permanent Land 7,433.20 5,280.28 71% 7,297.50 7,664.04 105% Acquisition Temporary Land 348.00 - 0% 1,337.60 - 0% Occupation Demolished House 2,671.25 - - Compensation Forest Land 1,089.60 866.11 79% 1,493.20 352.30 24% Compensation Sub-total 8,870.80 8,817.64 99% 10,128.30 8,016.34 79% Remark: the data is from statistic of departments responsible for land acquisition and house demolition of all project cities and counties. The fund in place is the fund that the PMO has been paid, but not the fund that has been paid to land-acquired persons and house-demolished persons.

16 Table 4 Detail of Resettlement Compensation Fund of the Project (up to Jun. 30, 2007) Unit: ‘000 CNY Suiling County Hailun City Item In place / In place / Planned In place Planned In place Planned Planned Permanent Land 14,937.80 13,273.35 89% 3,369.60 979.88 29% Acquisition Temporary Land 2,435.50 3,936.84 162% 362.30 1,862.68 514% Occupation Demolished House 3,855.81 - - Compensation Forest Land 2,039.70 1,167.89 57% 7,333.80 5,634.27 77% Compensation Sub-total 19,413.00 22,233.90 115% 11,065.70 8,476.83 77% Remark: the data is from statistic of departments responsible for land acquisition and house demolition of all project cities and counties. The fund in place is the fund that the PMO has been paid, but not the fund that has been paid to land-acquired persons and house-demolished persons.

Table 5 Detail of Resettlement Compensation Fund of the Project (up to Jun. 30, 2007) Unit: ‘000 CNY Baiquan County Linkou County Type Planned In place In place / Planned Planned In place In place / Planned Permanent Land 14,238.10 7,443.85 52% 26,561.10 15,604.91 59% Acquisition Temporary Land 534.90 - 0% 397.10 - 0% Occupation Demolished House - - 980.17 Compensation Forest Land 4,891.80 2,246.87 46% 433.50 78.43 18% Compensation Sub-total 19,664.80 9,690.72 49% 27,391.70 16,663.51 61% Remark: the data is from statistic of departments responsible for land acquisition and house demolition of all project cities and counties. The fund in place is the fund that the PMO has been paid, but not the fund that has been paid to land-acquired persons and house-demolished

17 persons.

Table 6 Detail of Resettlement Compensation Fund of the Project (up to Jun. 30, 2007) Unit: ‘000 CNY Fangzheng Tonghe

County County Type In place / In place / Planned In place Planned In place Planned Planned Permanent Land 57,646.90 12,359.21 21% 20,158.70 11,808.09 59% Acquisition Temporary Land 1,688.00 - 0% 264.60 - 0% Occupation Demolished House - - - Compensation Forest Land 271.10 16.41 6% 1,539.90 441.91 29% Compensation Sub-total 59,606.00 12,375.62 21% 21,963.20 12,250.00 56% Remark: the data is from statistic of departments responsible for land acquisition and house demolition of all project cities and counties. The fund in place is the fund that the PMO has been paid, but not the fund that has been paid to land-acquired persons and house-demolished persons.

Table 7 Detail of Resettlement Compensation Fund of the Project (up to Jun. 30, 2007) Unit: ‘000 CNY

Taoshan Forest Administration Bureau Type Planned In place In place / Planned

Permanent Land Acquisition 281.74

Temporary Land Occupation 367.62

Demolished House Compensation -

Forest Land Compensation 11,722.40 43.27 0%

Sub-total 11,722.40 692.63 6%

Remark: the data is from statistic of departments responsible for land acquisition and house demolition of all project cities and counties. The fund in place is the fund that the PMO has been

18 paid, but not the fund that has been paid to land-acquired persons and house-demolished persons.

2.3 Views of M&E This Time on the Progress of Land Acquisition and House Demolition

25. According to the investigation, up to Jun. 30, 2007, the rate of compensation fund for permanent land acquisition is 49%. There is 90% of this fund having been paid to land-acquired farmers. The other unpaid fund is the fund that is used for the compensation for the permanent land acquisition of linking roads construction and the fund that should be paid to village committees, which bring little negative impact on the land use of main road construction and the project construction.

26. The implemented compensation standard for land acquisition and house demolition corresponds with relevant laws and polices of PRC, relevant regulations of Heilongjiang Province and resettlement policy of ADB.

27. According to the analysis on the statistic of department responsible for land acquisition and house demolition, up to Jun. 30, 2007, the compensation fund in place for house demolition is 128%, which shows that such standard is higher than the one suggested by the RP. Such compensation standard is evaluated by the real estate evaluation companies that have relevant qualification, which is acknowledged by relevant law. However, house-demolished persons are still not satisfactory with it. Up to Jun. 30, 2007, there were only two house-demolished households moving into the new houses, but most of house-demolished persons refused to receive the compensation fund. They still live in the houses that are to be demolished but not construct new houses, as it is hard to purchasing new housing sites and the procedure of new housing sites is complex. However, the work of house demolition at present does not bring negative impact on the project construction temporarily, as the project belongs to old road improvement project, the amount of demolished houses is not so much and the demolished houses are not located in the key section of the project construction. Nevertheless, house-demolished persons will lose the time before winter to construct new houses due to the delayed house demolition. If the work of new house construction is implemented after May of 2008, the project construction will be affected to some extent. If forced house demolition is adopted, these house-demolished persons will find temporary housing to live in difficultly, which will bring negative impacts on the production and living of these house-demolished persons.

28. Up to Jun. 30, 2007, the EA or the departments of the project cities and counties responsible for the work of house demolition had not summarized the conditions of the facilities of electricity and communication and the attachments on the ground, so there is

19 no relevant datum of such items. According to the investigation, there are 80% of such items being signed compensation contract and started to be demolished, which does not bring negative impacts on the project construction.

20 3 Resettlement Institutions

29. Linquan Highway Improvement Project of Heilongjiang Province establishes resettlement office to specially take charge of the work of land acquisition and house demolition and resettlement of the project. Concretely, the responsibility of such institution is to identify the scope and amount of acquired land and the compensation standard for land acquisition and house demolition and deal with the problems appeared in the progress of land acquisition and house demolition.

30. National land resource bureaus, construction commissions and traffic administration bureaus of all project cities and counties take charge of doing the work of land acquisition and house demolition within the area under their own administration, offering the datum of land acquisition and house demolition and implemented resettlement policies, monitoring the payment of the compensation fees and solving the problems (such as traffic, water supply and electricity supply) induced by the project construction.

31. Forest administration bureaus of all project cities and counties take charge of do the work of forest land acquisition and related house demolition, offering relevant datum and implemented resettlement policies and monitoring the use of the acquired forest land and the compensation fees.

32. Governments of all project towns (or townships) are responsible to coordinate with national land resource bureaus, construction commissions and traffic administration bureaus of all project cities and counties to implement the work of land acquisition and house demolition.

33. Forest plants take charge of the forest land acquisition.

34. Village committees involved in the project are responsible to report the datum of land acquisition and house demolition, the conditions of acquired land and its property owners and users and the population and labour forces of the village, participate in the survey for land acquisition and house demolition, select the new housing sites, reflect the complaints of house-demolished persons, determine the plan for agriculture restoration and organize the work of house reconstruction.

35. Resettlement institutions of the project are complete and all of them cooperate well, esp. the work of land acquisition is implemented smoothly so that the project can be timely constructed.

21 4 The Implementation of Land Acquisition and Resettlement of

Tieli City

4.1 Identification of the Scope of the Acquired Land

36. Measurements of the actually permanent land acquisition: It is based on the actual achievements obtained from the baseline survey and the registered scope of land acquisition and the amount and quality of various attachments that are contracted among property owners, villager groups, governments of relevant towns or townships, project implementation unit and the national land resource bureau of relevant counties and cities. As for those that are beyond the regulated scope as the design is alternated during the project implementation, the identification of such measurements is also adopted the same method.

37. Measurements of the actually temporary land occupation: If the temporary land occupation is unavoidable, the national land resource bureau of relevant counties and cities should consult with the project construction units and land property owners to together determine the area and scope of the occupied land and the project construction units and land property owner should sign the related contracts. If the grounding crops and attachments are involved in the project construction, the project construction units should implement relevant standards and obtain relevant approvals in terms of regulated procedures.

4.2 Compensation Standard of Tieli City for Land Acquisition

38. According to Article 47 of Land Administration Law of PRC, as for land acquisition, compensation shall be made according to the original purposes of the land acquired. Compensation fees for land acquisition include land compensation fees, resettlement subsidy and compensation for standing crops and attachments on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement subsidy shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated through the amount of cultivated land acquired dividing by number of the land that each capital owns. The resettlement subsidy for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. But the maximum resettlement fee per hectare of the land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition.

22 39. According to Article 26 of the Regulation of Heilongjiang Province for Land Administration, the units who are involved in land acquisition should get land compensation fees, resettlement subsidy and compensation for standing crops and attachments on the land. The land property owners and land users of the acquired land should hold the certificates for the land property to go to local land administration departments for registering the compensation for land acquisition. Land compensation fees should be paid to the property units of collective land, and village collectivities should establish special accounts for the arrangement of the living subsidy for the persons affected by land acquisition and the construction of village infrastructures and collective enterprises. As for the use of land compensation fees, it is essential to get the supports of over 2/3 of villager representatives or over 2/3 of villagers and then obtain the approval of the government of related township. As for the persons who need the resettlement of village collectivity, resettlement subsidy should be paid to the property units of collective land; while as for those who need resettlement of other units, resettlement subsidy should be paid to those units; however, as for those who do not need unified resettlement, resettlement subsidy can be paid to those persons or used for purchasing social assurance for them if those persons agree with such resettlement pattern and sign related contracts with village collectivities. The determination of the standard for land compensation fees and resettlement subsidy can be referred to relevant regulations of Land Administration Law of PRC.

40. The standard for land compensation fees and resettlement subsidy of Tieli City is implemented according to the standard of the maximum amount regulated by Land Administration Law of PRC, that is, the land compensation fees is 10 times the average output value of the three years preceding the acquisition of the cultivated land and the resettlement subsidy for each agricultural person to be resettled is 6 times the average annual output value of the three years preceding the acquisition of the cultivated land. So the sum of land compensation fees and resettlement subsidy is 16 times the average output value of the three years preceding the acquisition of the cultivated land. According to the Regulation of Heilongjiang Province for Land Administration, land compensation fees is paid to the property units of collective land (that is, village committee) and resettlement subsidy is paid to the persons who need resettlement. However, as the land-acquired farmers believed the compensation standard was a little low, National Land Resource Bureau of Tieli City determined to pay all the land compensation fees, which should be paid to village collectivities, to these land-acquired farmers, that is, the compensations fees paid to land-acquired farmers is 16 times the average output value of the three years preceding the land acquisition, which is over 167% of the regulated compensation standard. The arrangement of the compensation for cultivated land acquisition of Tieli City is shown as Table 8, and the compensation standard for other land acquisition of Tieli City is shown as Table 9.

23

Table 8 the Arrangement of the Compensation for Cultivated Land Acquisition of Tieli City Relevant Regulations of PRC and Heilongjiang Province Implementaion Standards of Tieli City

Land Resettlement Land Resettlement Type Compensation Subsidy Total Compensation Subsidy Total Fees Fees

6-10 times the 4-6 times the 10-16 times the 10 times the 6 times the average 16 times the average annual average annual average annual average annual annual output value average annual Standard output value of the output value of the output value of the output value of the of the three years output value of the three years three years three years three years three years

Object of Village Committee Land-Acquired Land-Acquired Land-Acquired Land-Acquired the Persons Persons Persons Persons Payment

Remark: the data is from the statistics of National Land Resource Bureau of Tieli City.

24 Table 9 the Compensation Standard for Other Land Acquisition of Tieli City Standard of Land Compensation Fees and Resettlement

Subsidy ( CNY per mu) Type of Land Actual Implementation The RP Actual Implementation Divided by the RP

Dry Land 6616.00 6616.00 100%

Irrigation Land 9604.80 9604.80 100%

Rural Road 1654.00 1654.00 100%

Vegetable Land 14407.20 14407.20 100%

Wasted Pond 1654.00 1654.00 100%

Pond for Fish Breeding 12006.00 12006.00 100%

Land for Water Using 1654.00 1654.00 100%

Housing Site 1654.00 1654.00 100%

Vegetable Plastic Greenhouse

Unused Land (waste grass land)

Unused Land (soaked land)

Orchard

Grassland

Compensation for Dry Land

Standing Crops Irrigation Land

Total

Remark: the data is from the RP and the statistics of National Land Resource Bureau of Tieli City.

4.3 The Progress of Land Acquisition of Tieli City

41. According to the analysis of the surveyed datum of National Land Resource Bureau of Tieli City, the work of permanent land acquisition brought by the main roads construction has been finished. The actual area of the acquired land is shown as Table 10. It can be concluded that the area of the acquired land of Donghe Village and Aiguo

25 Village is over 190% compared with the RP, the one of Changbai Village and Yunshan Village is over 124% compared with the RP and the total area of the acquired of the city is over 121% compared with the RP. According to the introductions of the EA, some land is possibly added after relevant construction lines readjusted.

Table 10 Statistic of Actual Land Acquisition of All Towns (or Townships) of Tieli City (Up to Jun. 30, 2007) Land Acquisition (including temporary land occupation Town (or Administration Village and forest land) unit: mu Township) Planned Actual Actual/Planned

Wangyang Town Hongguang 132.64 129.71 98%

Kaoshan 27.6

Donghe 19.85 37.69 190%

Changshan 30.33 38.86 128%

Nianfeng 32.57 33.45 103% Nianfeng Town Yunshan 75.47 103.15 137%

Aiguo 53.51 105.35 197%

Aimin 136.25 168.64 124%

Lingyunshan 132.06 95.42 72%

Fengshou 52.1 52.58 101% Taoshan Township General Forest Land 14.37

Total of the City 664.78 806.84 121% Remark: the actual data is from statistics of National Land Resource Bureau of Tieli City, while the planned data is from the RP.

4.4 The Progress of Land Compensation Fees Payment of Tieli City

42. The payment of all the land compensation fees adopts monetary pattern. The procedure of such payment is as the following: First, the land-acquired farmers sign the compensation contracts with National Land Resource Bureau of Tieli City; second, all the land compensation fees are paid to the land-acquired farmers. The payment pattern of such land compensation fees should get the agreements of villagers groups, which include the amount of households, population, conditions of land acquisition, the resettlement ways for land-lost farmers, the allocation of land compensation fees, the discussion of villagers’ congress and the signatures of villagers’ representatives, and

26 then obtain the verification and approval of village committees, governments of relevant towns (or townships), agricultural economy station of Tieli City, Financial Bureau of Tieli City and National Land Resource Bureau of Tieli City. After the verification, National Land Resource Bureau of Tieli City will pay the land compensation fees to each land-acquired farmer by adopting monetary pattern. When these farmers receive the compensation fees, they should sign their names.

43. Up to Jun. 30, 2007, the progress of land compensation fees of all villages of Tieli City is shown as Table 11. The fund in place is accounting for 71% of the budget regulated in the RP. As the PMO, at present, has no way to calculate the actual amount of acquired land and the amount of land compensation fees that is based on the kinds of land and compensation standard, it is impossible to analysis and evaluate the rate that the land compensation fees paid presently is accounting for the total land compensation fees.

Table 11 Statistic of the Land Compensation Fees Payment of All Villages of Tieli City (up to Jun. 30, 2007) Total of Land Resettlement Administrative Amount of Compensation Compensation Subsidy (Unit: Village Household Fund Fees (Unit: ‘000 ‘000 CNY) (Unit: ‘000 CNY) CNY)

Hongguang 74 965.52 589.55 375.97

Kaoshan 16 174.03 108.60 65.42

Donghe 31 154.90 96.35 58.55

Changshan 52 252.86 137.10 115.76

Nianfeng 16 280.58 173.46 107.12

Yunshan 36 795.19 492.85 302.34

Aiguo 31 496.08 306.89 189.19

Aimin 56 1,097.35 680.98 416.37

Lingyunshan 33 610.29 381.26 229.03

Fengshou 45 453.49 282.51 170.98

Total 390 5,280.28 3,249.55 2,030.73 Remark: the data is from the statistics of National Land Resource Bureau of Tieli City.

27 4.5 Identification of the Scope of House Demolition of Tieli City

44. The EA entrusts Construction Commission of Tieli City to take charge of the work of house demolition within Tieli City. The EA, House Demolition Administration Office of Construction Commission of Tieli City get together with the property owners of the demolished houses to determine the scope of house demolition after field measurement. Details of the demolished houses that are gotten through baseline survey and field measurement are shown as Table 12.

4.6 Compensation Standard for House Demolition of Tieli City

45. In April, 2007, House Demolition Administration Office of Construction Commission of Tieli entrusted Heilongjiang Xinheng Real Estate Evaluation Co. Ltd. to evaluate the demolished houses within the scope of Tieli. After such evaluation, all kinds of demolished houses and related compensation standard are shown as Table 12 and Table 13. The total area of affected houses, including the demolished houses and related attachments, is 5,410.58 ㎡; and all the fees for house demolition is estimated as CNY 2.63million. The area of the demolished houses is 3,107.20 ㎡, which is over 135% compared with the 1,320 ㎡ regulated in the RP.

46. The evaluated compensation standard achieved by Heilongjiang Xinheng Real Estate Evaluation Co. Ltd. is not less than the compensation standard regulated in the RP. If the EA implements such evaluated compensation standard, the budget regulated in the RP will be exceeded.

28 Table 12 Details of the Actual Scope of House Demolition and Related Compensation Standard of Tieli City (by households) Unit Price of Covered Area Compensation Fees No. Property Owner the Compensation Remark (㎡) (Unit: ‘000 CNY) (Unit: CNY/㎡) 1 Liu Liming 144.00 680 97.92 storehouse 40.00 60 2.40 2 Wang Chunxia 70.00 780 54.60 storehouse 30.00 260 7.80 3 Li Xiang 45.00 700 31.50 storehouse 57.60 160 9.22 4 Song Wenfu 88.00 700 61.60 storehouse 30.00 260 7.80 cellar for 1.00 1,500 1.50 Only one item storing vegetable surrounding wall 103.00 120 12.36 5 Liu Guojun 73.00 360 26.28 6 Wang Jingyu 47.40 260 12.32 7 Mi Zhaoyang 48.00 260 12.48 storehouse 20.00 120 2.40 housing 27.30 260 7.10 8 Wu Xiangwen 32.34 120 3.88 9 Chen Jianjun 216.00 15 3.24 10 Liang Haisheng 131.40 15 1.97 11 Feng Chunsheng 400.00 1,200 480.00 storehouse 81.60 160 13.06 12 Guo Dewei 70.00 400 28.00 13 Li Chunming 40.00 400 16.00 storehouse 20.00 50 1.00 hogpen 1.00 1,000 1.00 Only one item 14 Wei Chengju 30.00 300 9.00 hogpen 20.00 15 0.30 15 Zhou Yulan 50.00 260 13.00 16 Cui Rui 20.00 150 3.00 17 Wang Zaiquan 20.00 100 2.00 18 Wu Tieshan 90.00 800 72.00 storehouse 70.00 100 7.00 storehouse 20.00 60 1.20 steel surrounding wall 34.00 80 2.72

29 Unit Price of Covered Area Compensation Fees No. Property Owner the Compensation Remark (㎡) (Unit: ‘000 CNY) (Unit: CNY/㎡) sample-structured house 16.00 180 2.88 19 Zhao Zhongai 140.00 1,000 140.00 20 police station 0 office 242.73 700 169.91 office 26.84 700 18.79 21 Si Guoqing 49.59 600 29.75 office 19.52 650 12.69 22 Wang Bo 70.00 360 25.20 23 Lian Haifu 70.00 300 21.00 24 Zhou Zhigang 74.00 150 11.10 25 Gao Xinglin 88.00 600 52.80 26 Luo Yanhui 46.06 200 9.21 storehouse 12.00 30 0.36 27 Lv Kaiqing 88.00 260 22.88 28 Guo Wu 47.05 100 4.71 storehouse 15.00 60 0.90 Lv Kaiqing 20.00 100 2.00 29 Zhang Haitao 49.50 100 4.95 storehouse 30.00 40 1.20 30 Ju Haitao 50.00 300 15.00 storehouse 15.75 100 1.58 31 Liu Wenming 92.00 20 1.84 hogpen 1.00 150 0.15 32 Li Mengsheng 25.00 600 15.00 33 Qi Chengxiang 18.80 300 5.64 34 Jiang Keyun 67.80 300 20.34 35 Jin Chunxing 44.08 100 4.41 36 Fan Zhaoyang 45.00 300 13.50 37 Song Guiguo 40.00 100 4.00 38 Xu Guoxin 52.70 100 5.27 39 Wang Yujun 43.61 100 4.36 40 Zhang Jingfen 48.00 120 5.76 41 Huo Shicai 60.00 500 30.00 42 Checkpoint 36.30 500 18.15 oil storage 99.21 500 49.61 43 Nanhe Beadhouse 20.00 40 0.80

30 Unit Price of Covered Area Compensation Fees No. Property Owner the Compensation Remark (㎡) (Unit: ‘000 CNY) (Unit: CNY/㎡) hennery 125.00 10 1.25 44 Yinglichu Workshop 100.25 500 50.13 Basement 100.00 260 26.00 45 Hu Baoyu 16.13 150 2.42 housing 60.00 240 14.40 storehouse 20.00 60 1.20 46 Guo Yuhai 56.00 60 3.36 47 Shi Shuang 37.44 60 2.25 48 Hao Jifang 90.00 500 45.00 storehouse 42.00 60 2.52 Office for Hydroelectric 120.49 500 60.25 Administration balefire flatform 94.09 200 18.82 hall 1.00 42,000 42.00 Only one item general house 27.00 150 4.05 general house3 30.00 150 4.50 facility for baking dry 49 1.00 31,500 31.50 Only one item of Liu Liming 50 Bafurong Restaurant 150.00 1,300 195.00 Bafurong Housing 98.00 1,000 98.00 51 Workshop of Jili Rice Factory 210.00 1,050 220.50 Fees for Facility Removal 1.00 8,000 8.00 Only one item

Total 2630.23

Remark: the data is from Construction Commission of Tieli City and Heilongjiang Xinheng Real Estate Evaluation Co.Ltd.

31 Table 13 Compensation Standard for Demolished House and Attachment of Tieli City (by the type of building) Compensation Total of The Type of Item Unit:㎡ Standard (Unit: Compensation Fees Compensation CNY) (Unit: CNY) Brick-concrete Ⅰ 100 260 26000 Ⅱ 256 500 128000 Ⅲ 400 1200 480000 Ⅳ 150 1300 195000 Ⅳ 1 1500 1500 Brick-wooden Ⅰ 20 100 2000 Ⅱ 32.34 120 3880.8 Ⅲ 36.125 150 5418.75 Ⅳ 60 260 15600 Ⅳ 70 360 25200 Ⅵ 250.25 500 125125 Ⅶ 137.59 600 82554 Ⅷ 19.52 650 12688 Ⅸ 144 680 97920 Ⅹ 402.57 700 281799 Ⅺ 70 780 54600 Ⅻ 90 800 72000 ⅩⅢ 238 1000 238000 ⅩⅣ 210 1050 220500 ⅩⅣ 0 Steel-concrete Ⅰ 347.4 15 5211 Ⅱ 34 80 2720 Ⅲ 103 120 12360 Boarding-earth Ⅰ 57.6 160 9216 Ⅱ 60 240 14400 Grass-earth Ⅰ 15 60 900 Ⅱ 312.69 100 31269 Ⅲ 68 120 8160 Ⅳ 74 150 11100 Ⅳ 46.06 200 9212 Ⅵ 260.7 260 67782 Ⅶ 281.6 300 84480 Ⅷ 73 360 26280 Ⅸ 110 400 44000

32 Compensation Total of The Type of Item Unit:㎡ Standard (Unit: Compensation Fees Compensation CNY) (Unit: CNY) Wooden Ⅰ 125 10 1250 Ⅱ 92 15 1380 20 20 400 12 30 360 50 40 2000 20 50 1000 235.44 60 14126.4 70 100 7000 58 150 8700 81.6 160 13056 16 180 2880 94.09 200 18818 1 1000 1000 1 42000 42000 Fees for Facility Concrete 1 8000 8000 Removal Facility for 1 31500 31500 Baking Dry Total 2548345.95

Remark: the data is from Construction Commission of Tieli City and Heilongjiang Xinheng Real Estate Evaluation Co.Ltd.

33

4.7 The Progress of House Demolition of Tieli City

47. UP to Jun. 30, 2007, the house demolition work of Tieli City was started (the houses to be demolished have not been demolished and the house-demolished farmers have not begun to construct new houses). Through field study, it can be concluded that the house-demolished farmer believed that the compensation standard is lower than the one they expected and refused to receive the compensation fees, although the estimated prices that Heilongjiang Xinhui Real Estate Evaluation Co. Ltd. offered is higher than compensation standard regulated in the RP. As the house-demolished farmers have not received compensation fees and the procedures of new housing sites examination should get the approval of the government of Tieli City, which will last long terms, most house-demolished farmers have not begun to construct new houses at present.

4.8 Conclusion of the M&E for the Land Acquisition and House Demolition of Tieli City

48. Up to Jun. 30, 2007, the fund in place for permanent land acquisition was accounting for 71% of the total and all land compensation fees for permanent land acquisition have been paid to all land-acquired farmers and the compensation standard is 167% of the one regulated by PRC’s law and relevant regulation of Heilongjiang Province, which gets satisfactions of land-acquired farmers. The work of permanent land acquisition for main roads construction of Tieli City has been finished. Meanwhile, there is no exact statistical datum obtained from temporary land occupation, but it is estimated that there are 80% having been finished with regarding to the explanations of relevant land administration departments. All the land compensation fees paid by the PMO have been paid to all the land-acquired farmers, and misappropriation has not been found.

49. Up to Jun. 30, 2007, the linking roads within the scope of Tieli City was not started and the related work of land acquisition and house demolition was also not implemented.

50. Up to Jun. 30, 2007, Tieli City was finished the work of demolished house evaluation, but the house demolition administration department has not achieve the final contract with the house-demolished farmers. The work of house demolition has not been started and the compensation fees have not been paid to house-demolished farmers. Most house-demolished farmers believe that the procedure of new housing sites examination is complex and they are not offered relevant assistances and supports from the governments of townships and village committees. Compared with the RP, the work of house demolition is deferred for 2 months, but it is impossible to bring negative impacts on the project construction as the houses to be demolished are not located in the key section of the project. If the house-demolished farmers have not moved to the new

34 houses before the winter of 2007, it is probable to bring negative impacts on the project construction which is implemented in the May of 2008.

35 5 The Implementation of Land Acquisition and Resettlement of

Qing’an County

5.1 Identification of the Scope of the Acquired Land

51. Measurements of the actually permanent land acquisition. It is based on the actual achievements obtained from the baseline survey and the registered scope of land acquisition and the amount and quality of various attachments that are contracted among property owners, villager groups, governments of relevant towns or townships, project implementation unit and the national land resource bureau of relevant counties and cities. As for those that are beyond the regulated scope as the design is alternated during the project implementation, the identification of such measurements is also adopted the same method. 52. Measurements of the actually temporary land occupation. If the temporary land occupation is unavoidable, the national land resource bureau of relevant counties and cities should consult with the project construction units and land property owners to together determine the area and scope of the occupied land and the project construction units and land property owner should sign the related contracts. If the grounding crops and attachments are involved in the project construction, the project construction units should implement relevant standards and obtain relevant approvals in terms of regulated procedures. 53. As for the fragmentary land that is left after the planned land acquired, which is hard to be cultivated by using machines, local farmers require the PMO can acquire such land and pay relevant compensation fees. At present, the EA has no sufficient time to consult with the farmers to calculate the amount of the area of such land and determine relevant compensation standard.

5.2 Compensation Standard of Qing’an County for Land Acquisition

54. The compensation standard for irrigation land is CNY 746.67 per mu and the one for dry land is CNY 493 per mu, which all adopt the estimated prices regulated in the RP. The compensation standard for forest land also adopts the estimated prices regulated in the RP, which is shown as Table 14. The compensation standard for other land is shown as Table 15.

36 Table 14 the Arrangement of the Compensation for Cultivated Land Acquisition of Qing’an County

Land Area of Output Resettlement Times of Land Times of Compensation Total Acquired Land Value of the Subsidy Item Compensation Resettlement Fees (Unit: ‘000 (unit: mu) Land (Unit: (Unit: ‘000 Fees Subsidy (Unit: ‘000 CNY) CNY/mu) CNY) CNY) Irrigation 141.10 746.67 10 6 1,053.58 632.15 1,685.73 Land Dry Land 2.49 493.33 10 6 12.27 7.36 19.63 Total 1,065.85 639.51 1,705.36 Objects Regulated by Village Land-acquired

of the the PRC Committee Farmers Payment Land-acquired Village Implemented Ｐaid Unpaid Farmers Committee Remark: the data is from the RP and National Land Resource Bureau of Qing’an County.

55. According to relevant regulations of PRC, the land compensation fees, which is paid to village committees, shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land; and the resettlement subsidy, which is directly paid to land-lost farmers for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. The land compensation standard of Qing’an County adopts the maximum amount regulated by the law of PRC; in addition, the compensation standard used for land-lost farmers is raised 10 times, which is over 67% of the one regulated by the law of PRC. All of these farmers are satisfactory with such compensation standard and received the land compensation fees. The work of permanent land acquisition, which is used for the main roads construction within the scope of Qing’an County, is finished at present. 56. As for these farmers whose land is planned to be acquired in 2006 but not acquired and uncultivated at that time, they are also compensated the same output value of 2006, the compensation standard of which is CNY 267 per mu of dry land and CNY 533 per mu of irrigation land. These farmers agree such compensation standard.

37

Table 15 the Compensation Standard for Other Land Acquisition of Qing’an County Standard of Land Compensation Fees and Resettlement

Subsidy ( CNY per mu) Type of Land Actual Implementation The RP Actual Implementation Divided by the RP

Dry Land 7,897.60 7,897.60 100%

Irrigation Land 11,952.00 11,952.00 100%

Rural Road 1,974.40 1,974.40 100%

Vegetable Land 19,200.00 19,200.00 100%

Wasted Pond - - 100%

Pond for Fish Breeding - - 100%

Land for Water Using 1,974.40 1,974.40 100%

Housing Site 1,974.40 1,974.40 100%

Vegetable Plastic Greenhouse 5,336.00 5,336.00 100%

Unused Land (waste grass land) 987.20 987.20 100%

Unused Land (soaked land) -

Well -

Orchard -

Grassland -

Compensation for Dry Land 266.80 266.80 100%

Standing Crops Irrigation Land 533.60 533.60 100%

Total

Remark: the data is from the RP and National Land Resource Bureau of Qing’an County.

38 57. The compensation standard for forest land acquisition is according to the estimated prices regulated by the laws and regulations of PRC.

5.3 The Progress of Land Acquisition of Qing’an County

58. According to the analysis for the survey datum from National Land Resource Bureau of Qing’an County, the work of permanent land acquisition for main road construction with Qing’an County is finished, the compensation standard of which gets the satisfactions of farmers. Up to Jun. 30, 2007, the actual area of acquired land calculated by National Land Resource Bureau of Qing’an County is shown as Table 16. It can be seen from Table 10 that as a part of lines located in Qing’an County is optimized, the project construction in Qing’an County detours the villages to be affected by land acquisition in the RP, which include Jiusheng Village, Xunsheng Village, Lanhe Village, Gengxin Village, Fuyou Village and Yumin Village. These villages are not affected by the project constructed, but after the line adjusted, there are some villages and one unit to be added and involved in the land acquisition, which include Jiuhong Village, Jiuyang Village, Qingqiang Village, Xinfu Village, Shuangfu Village, Tongxing Village, Yongfu Village and highway administration station. The actual area of permanently acquired land is 1,010.35mu, which is 173% of the one regulated in the RP. The main reason is that some land is added after part of lines are adjusted and the ways of existing roads reconstruction is discarded; in addition, the real landform has a little difference with the one designed, which make the area of acquired land to be changed and increase some land. As for the detailed reasons, it is possible to be further achieved by getting relevant datum from the EA, which needs the EA to spend time to collect such datum. 59. The work of forest land acquisition of Qing’an County has been finished at present. The total area of such land is 225.6mu, which decreases 14.25mu compared with the planned 239.85mu and reduces 6% than the RP.

Table 16 Statistic of Actual Land Acquisition of All Towns (or Townships) of Qing’an County (Up to Jun. 30, 2007) Land Acquisition (including temporary land occupation and Town (or Administration Village forest land) unit: mu Township) Planned Actual Actual/Planned

Fengshou Fengtian 77.97 104.86 134%

Town Fengshou 6.1 8.23 135%

Jiusheng Jiuwang 155.89 152.35 98%

39 Land Acquisition (including temporary land occupation and Town (or Administration Village forest land) unit: mu Township) Planned Actual Actual/Planned

Township Jiuhong 84.71

Jiuyang 54.02

Jiusheng 1.15 0%

Xunsheng 100.91 0%

Plant for Storing Good Seed 26.37 32.89 125%

Qing’an Qingqiang 5.77

Township Qingfu 23.52 38.57 164%

Highway Administration 5.43 Station

Xinglong 23.19 5.58 24%

Xinfu 87.73

Lanhe 38.53 0% Zhifu Town Gengxin 38.25 0%

Fuyou 16.96 0%

Shuangfu 91.98

Tongfu 43.52 99.87 229%

Tongle 27.4 134.01 489% Tongle Town Yumin 3.96 0%

Tongxing 1.33

Xinfu 14.55 Zhifu Town Yongfu 49.08

Forest Administration Bureau 39.39 of Qing’an County

Total of the county 583.72 1010.35 173% Remark: the actual data is from statistics of National Land Resource Bureau of Qing’an County, while the planned data is from the RP.

40 5.4 The Progress of Land Compensation Fees Payment of Qing’an County

60. National Land Resource Bureau of Qing’an County takes charge of the work of land acquisition but not signs the land compensation contract with the land-acquired farmers. Land compensation fees are directly paid to the land-acquired farmers and they should sign their names on the tables of land compensation fees and resettlement subsidy. All the land compensation fees that should be paid to land-lost farmers have been paid to these farmers. The compensation standard is over 67% of the one regulated by the law of PRC. The work of permanent land acquisition has been transferred to the construction unit to be implemented. The land compensation fees that should be paid to village committees have not been paid in, but it does not affect the work of land transferring. 61. Up to Jun. 30, 2007, the progress of land compensation fees payment is shown as Table 17, and the actual compensation fees in place is accounting for 105% of the budget regulated by the RP. As the PMO, at present, has not calculated the actual amount of acquired land and the amount of land compensation fees that is based on the kinds of land and compensation standard, it is impossible to analysis and evaluate the rate that the land compensation fees paid presently is accounting for the total land compensation fees. However, with regarding to the fees have been paid to the farmers affected, which is 10 times the average output value of the three years preceding the acquisition of the cultivated land, and the fees have not been paid to relevant village committees, which is 6 times the average output value of the three years preceding the acquisition of the cultivated land, it is estimated that the rate of land compensation fees in place is 10/16 equalling to 62.5%. 62. The total compensation fees for forest land acquisition are CNY 1.43 million, which is shown as Table 18. Up to Jun. 30, 2007, such fees were paid to the forest administration department of the county, but the work of forest land acquisition was finished and the construction work was transferred to the project construction unit.

41 Table 17 Statistic of the Land Compensation Fees Payment of All Villages of Qing’an (up to Jun. 30, 2007) Land Total of Resettlement Administration Amount of Compensation Compensation Fund Subsidy Village Household Fees (Unit: ‘000 CNY) (Unit: ‘000 CNY) (Unit: ‘000 CNY) Fengtian 140 1,106.35 689.14 417.21

Fengshou 59.19 37.00 22.20

Jiuwang 153 1,739.64 1,066.72 672.92

Jiuhong 52 962.36 598.47 363.89

Jiuyang 28 627.14 390.95 236.19

Plant for Storing 393.17 245.73 147.44 Good Seeds

Qingqiang 1 75.93 47.46 28.47

Qingfu 38 389.42 241.63 147.78

Highway

Administration 42.89 26.81 16.09

Station

Xinglong 3 16.13 7.33 8.80

Xinfu 28 362.03 233.83 128.19

Shuangfu 53 573.07 342.55 230.52

Tongfu 81 971.89 614.88 357.01

Tongle 8 222.00 150.03 71.97

Tongxing 9 13.77 8.60 5.16

Xinfu 4 46.58 20.99 25.60

Yongfu 8 62.47 35.65 26.82

Total 390 7,664.04 4,757.78 2,906.26

Paid Unpaid

Remark: the data is from the statistic of National Land Resource Bureau of Qing’an County.

42 Table 18 Statistic of Forest Land Compensation Fees of Qing’an County (Unit: ‘000 CNY) Area of Compensation Plant Compensation Acquired Fees for Forest Resettlement Town (or Township) Storage Fees for Total Land (unit: Land Subsidy Fees Broken Wood mu) Acquisition Zhifu Town 361.32 32.01 38.88 52.38 484.59 Jiusheng Township 91.34 11.13 5.14 21.20 128.82 Tongle Town 540.20 65.84 30.39 118.04 754.46 Fengshou Town 5.20 0.63 0.29 2.24 8.37 Qing’an Township 30.40 3.71 1.71 17.84 53.66 Total of Qing’an 255.60 1,028.46 113.32 76.40 211.70 1,429.89 County

5.5 Identification of the Scope of House Demolition of Qing’an County

63. As for the work of house demolition within the scope of Qing’an County, the EA appoints special staffs to directly get together with the contractors and house property owner, according to the project drawing, to determine the scope of house demolition through field measurement. Up to Jun. 30, 2007, the EA had no way to calculate the actual scope of demolished houses, so there is no detailed table to reflect the conditions of house demolition of this county.

5.6 Compensation Standard for House Demolition of Qing’an County

64. The EA plans to consult with property owners of the demolished houses to determine the implemented compensation standard, which is based on the compensation standard suggested by the RP. Up to Jun. 30, 2007, the EA did not achieve the compensation contract for house demolition with these property owners. At present, the work of consultation is still being implemented, so M&E this time has no way to obtain the compensation standard for house demolition.

43 5.7 The Progress of House Demolition of Qing’an County

65. Up to Jun. 30, 2007, the EA did not achieve the compensation contract for house demolition with property owners of the demolished houses and the compensation fees were not paid. It can be concluded that the work of house demolition was not started and the houses to be demolished houses were not demolished and the house-demolished farmers have not built new houses. In addition, the procedure of new housing sites examination is complex; and the price of second hand housing site is a little higher so that these house-demolished farmers believe the compensation standard regulated by the RP is a little lower and cannot agree the existing compensation contract offered by the EA.

5.8 Conclusion of the M&E for the Land Acquisition and House Demolition of Qing’an County

66. Up to Jun. 30, 2007, all land compensation fees for permanent land acquisition have been paid to all land-acquired farmers and the compensation standard is over 67% of the one regulated by PRC’s law and relevant regulation of Heilongjiang Province, which gets satisfactions of land-acquired farmers. The work of permanent land acquisition for main roads construction of Qing’an County has been finished. Meanwhile, there is no exact statistical datum obtained from temporary land occupation, but it is estimated that there are 85% having been finished with regarding to the explanations of relevant land administration departments.

67. Up to Jun. 30, 2007, the linking roads sub-project within the scope of Qing’an County was not started and the work of land acquisition and house demolition was also not implemented.

68. Up to Jun. 30, 2007, the EA had no sufficient time to calculate the area of the fragmentary land left by the major land acquisition, which is also acquired, and related compensation fees was not paid, but the EA promised that it would offer reasonable compensation fees for such land. The work of the fragmentary land acquisition will not bring any negative impacts on the project construction and the postponed compensation will also not bring negative impacts on the life of the farmers affected.

69. Up to Jun. 30, 2007, the EA did not achieve the compensation contract for house demolition with property owners of the demolished houses and the compensation fees were not paid. It can be concluded that the work of house demolition was not started and

44 the houses to be demolished houses were not demolished and the house-demolished farmers have not built new houses. Most house-demolished farmers believe that the procedure of new housing sites examination is complex and they are not offered relevant assistances and supports from the governments of townships and village committees. Compared with the RP, the work of house demolition is deferred for 2 months, but it is impossible to bring negative impacts on the project construction as the houses to be demolished are not located in the key section of the project. If the house-demolished farmers have not moved to the new houses before the winter of 2007, it is probable to bring negative impacts on the project construction which is implemented in the May of 2008.

6 The Implementation of Land Acquisition and Resettlement of

Suiling County

6.1 Identification of the Scope of the Acquired Land

70. Measurements of the actually permanent land acquisition. It is based on the actual achievements obtained from the baseline survey and the registered scope of land acquisition and the amount and quality of various attachments that are contracted among property owners, villager groups, governments of relevant towns or townships, project implementation unit and the national land resource bureau of relevant counties and cities. As for those that are beyond the regulated scope as the design is alternated during the project implementation, the identification of such measurements is also adopted the same method.

71. Measurements of the actually temporary land occupation. If the temporary land occupation is unavoidable, the national land resource bureau of relevant counties and cities should consult with the project construction units and land property owners to together determine the area and scope of the occupied land and the project construction units and land property owner should sign the related contracts. If the grounding crops and attachments are involved in the project construction, the project construction units should implement relevant standards and obtain relevant approvals in terms of regulated procedures.

45 6.2 Compensation Standard of Suiling County for Land Acquisition

72. The compensation standard for irrigation land is CNY 667 per mu and the one for dry land is CNY 453 per mu, which all adopt the estimated prices regulated in the RP. The compensation standard for forest land also adopts the estimated prices regulated in the RP, which is shown as Table 19.

46

Table 19 The Arrangement of the Compensation for Cultivated Land Acquisition of Suiling County

Output Land Resettlement Total Area of Value of Times of Land Times of Compensation Subsidy (Unit: Item Acquired Land the Land Compensation Resettlement Fees (Unit: ‘000 ‘000 (unit: mu) (Unit: Fees Subsidy (Unit: ‘000 CNY) CNY) CNY/mu) CNY) Irrigation 866.89 666.67 10 6 5,779.24 3,467.54 9,246.78 Land Dry Land 488.81 453.33 10 6 2,215.93 1,329.56 3,545.49 Total 1,355.69 7,995.17 4,797.10 12,792.27 Regulation of Village Land-acquired Objects the PRC Committee Farmers of the Land-acquired Village Payment Implementation Ｐaid Paid in partly Farmers Committee Remark: the data is from the RP and National Land Resource Bureau of Suiling County.

73. According to relevant regulations of PRC, the land compensation fees, which is paid to village committees, shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land; and the resettlement subsidy, which is directly paid to land-lost farmers for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. The land compensation standard of Suiling County adopts the maximum amount regulated by the law of PRC; in addition, the compensation standard used for land-lost farmers is raised 10 times, which is over 67% of the one regulated by the law of PRC. All of these farmers are satisfactory with such compensation standard and received the land compensation fees. The work of permanent land acquisition, which is used for the main roads construction within the scope of Suiling County, is finished at present.

74. The compensation standard for forest land acquisition is according to the estimated prices regulated by the laws and regulations of PRC.

6.3 The Progress of Land Acquisition of Suiling County

75. According to the analysis for the survey datum from National Land Resource Bureau of Suiling County, the work of permanent land acquisition for main road construction with

47 Suiling County is finished, the condition of which is shown as Table 20. It is known from Table 20 that the project construction needs to re-acquire new land as a part of the main road readjusted and the originally planned road abandoned. Therefore, it can be concluded that some villages involved in land acquisition in the RP are not affected by land acquisition in fact but some land is added as the readjustment of the construction line. To sum up, after land acquisition readjustment, the total area of acquired land with Suiling County is 2,046.86mu, which increase 99% compared with the RP. In addition, the real landform has a little difference with the one designed, which make the area of acquired land to be changed and increase some land. As for the detailed reasons, it is possible to be further achieved by getting relevant datum from the EA, which needs the EA to spend time to collect such datum.

76. The work of forest land acquisition of Suiling County has been finished at finished. The total area of such land is 189.67mu, which decreases 55.73mu compared with the planned 245.4mu and reduces 23% than the RP.

48 Table 20 Statistic of Actual Land Acquisition of All Towns (or Townships) of Suiling County (Up to Jun. 30, 2007) Land Acquisition (including temporary land occupation and Town(or Administration Village forest land) unit: mu Township) Planned Actual Actual/Planned Weixing 44.98 147.39 328% Nuomin 3.79 Nierhe Zhendong 135.73 Town Shuanghe 71.96 Fubei 132.47 696.85 526% Shuanghe 22.4 Fuguo 17.74 Shangji 240.3 132.92 55% Huhelan 23.06 Baotian 40.9 46.97 115% Shangji 39.14 40.09 102% Township Daoxiang 23.06 Nuominhe 9.92 0% Ping’an 4.7 17.75 378% Zhendong Village of 61.23 0% Houtou Town Kaoshan Town 5 3.74 75% Kaoshan 46.69 33.44 72% Shuanghe 88.03 66.94 76% Jiujiang 53.76 58.32 108% Kaoshan Dongfanghong 25.15 19.84 79% Town Guangmang 98.95 154.7 156% Shengli 103.3 146.15 141% 104.14 Fushan 7.86 Qijing 29.46 18.42 63% Plant for Storing Good 17.89 Seeds Railway 0.66 Forest Administration 0.77 Bureau Highway Adm. Station 0.32 Economic Adm. Bureau 5.2 0% Finance Bureau 33.94

49 Total of the County 1029.18 2046.86 199% Remark: the actual data is from statistics of National Land Resource Bureau of Suiling County, while the planned data is from the RP.

6.4 The Progress of Land Compensation Fees Payment of Suiling County

77. The payment of all the land compensation fees adopts monetary pattern. The procedure of such payment is as the following. The land-acquired farmers sign the land compensatio contract with National Land Resource Bureau of Suiling County; and then the EA pay the compensation fees which is 10 times the output value of the three years preceding the acquisition of the cultivated land; and then National Land Resource Bureau of Suiling County directly pays all the compensation fees (including land compensation fees and resettlement subsidy) to those land-acquired farmers and at the same time the land-acquired farmers who receive the fees should sign their names on relevant tables. All the land compensation fees that should be paid to land-lost farmers have been paid to these farmers. The compensation standard is over 67% of the one regulated by the law of PRC. The work of permanent land acquisition has been transferred to the construction unit to be implemented. The land compensation fees that should be paid to village committees have not been paid in, but it does not affect the work of land transferring.

78. Up to Jun. 30, 2007, the progress of land compensation fees of all villages of Tieli City is shown as Table 21. The fund in place is accounting for 89% of the budget regulated in the RP, the rate of which is high. As the PMO, at present, has not calculated the actual amount of acquired land and the amount of land compensation fees based on the kinds of land and compensation standard, it is impossible to analysis and evaluate the rate of the land compensation fees paid presently accounting for the total land compensation fees. However, with regarding to the fees have been paid to the farmers affected, which is 10 times the average output value of the three years preceding the acquisition of the cultivated land, and the fees have not been paid to relevant village committees (but the PMO primarily estimates there is 50% of the fees to be paid in), which is 6 times the average output value of the three years preceding the acquisition of the cultivated land, it is estimated that the rate of land compensation fees in place is (10 ＋6×50%)/16＝81.25%.

79. The compensation standard for forest land acquisition of Suiling County is shown as Table 22. Up to Jun. 30, 2007, the compensation fees for forest land acquisition has not been paid.

50

Table 21 Statistic of the Land Compensation Fees Payment of All Villages of Suiling (up to Jun. 30, 2007) Total of Resettlement Land Compensation Administrative Amount of Compensation Subsidy Fees Village Household Fund (Unit: ‘000 CNY) (Unit: ‘000 CNY) (Unit: ‘000 CNY) Shangji Township 112 1,178.02 734.43 443.59 Fubei 156 6,351.91 3,969.95 2,381.97 Huhelan 14 246.12 153.82 92.29 Jiujiang 12 447.36 274.16 173.20 Dongfanghong 499.76 312.35 187.41 Qijing 12 133.64 83.53 50.12 Shuanghe 579.17 303.60 275.58 Baotian 453.55 283.47 170.08 Individual plus Daoxiang Village 256.11 160.07 96.04 Collectivity Village 246.12 - 246.12 Collectivity Guangmang 510.90 319.31 191.59 Shengli 716.22 447.64 268.58 Individual plus Fushan Village 749.15 468.22 280.93 Collectivity Village 57.03 - 57.03 Collectivity Ping’an 6 126.85 79.28 47.57 Weixing 553.87 346.17 207.70 Plant for Storing 167.56 101.23 66.32 Good Seeds Total 13,273.35 8,037.23 5,236.12

Table 22 Statistic of Forest Land Compensation Fees of Suiling County (Unit: ‘000 CNY) Area of Compensation Acquired Plant Compensation Fees for Forest Resettlement County Land Storage Fees for Total Land Subsidy (unit: Fees Broken Wood Acquisition mu)

51 Suiling County 189.67 0 72.59 672.70 246.09 991.38

6.5 Identification of the Scope of House Demolition of Suiling County

80. As for the work of house demolition within the scope of Suiling County, the EA appoints special staffs to directly get together with the contractors and house property owner, according to the project drawing, to determine the scope of house demolition through field measurement. With baseline survey and field measurement, the condition of the houses needed to be demolished is shown as Table 23.

6.6 Compensation Standard for House Demolition of Suiling County

81. In April, 2007, the EA entrusted Suihua Hexing Real Estate Evaluation Co. Ltd. to evaluate the houses that are to be demolished. With such evaluation, the types and compensation standard of all houses that are to be demolished are shown as Table 23 and Table 24. From the two tables, it can be concluded that total area of such houses is 4,102.70 ㎡ and total compensation fees for house demolition are CNY 3.86 million, which increases 408% compared with the estimated area shown by the RP, but it is hard to analyse the reasons why the actual demolished area is over 3 times than the planned area before the EA does the work of statistic and makes relevant analysis.

82. Compared with compensation standard stated in the RP, the compensation standard evaluated by Suihua Hexing Real Estate Evaluation Co. Ltd. is no less than the former one. If the EA implement such evaluated compensation standard, the final compensation fees will exceed the budget shown by the RP.

52 Table 23 the Actual Scope of Demolished Houses and the Detailed Compensation Fees of Suiling County Total of Area of the Unit Price of the Compensation No. Property Owner Demolished Compensation Remark Fees House (unit: ㎡) (Unit: CNY per ㎡) (Unit: ‘000 CNY)

1 Li Guohui 345 838.46 289.27

2 Li Zhongsheng 85.1 813.31 69.21 Highway Administration 3 Bureau 280 838.46 234.77

4 Zhai Lijun 72 670.77 48.30

5 Li Guohui 400 670.77 268.31

6 Man Hongzhang 56 754.61 42.26

7 Li Shishan 144 830.08 119.53

8 Li Zhijun 96 821.69 78.88

9 Li Zhijun 118 821.69 96.96

10 Li Wanjun 360 821.69 295.81

11 Li Wanjun 301 637.23 191.81

12 Li Guojun 96 813.31 78.08

13 Li Hongjun 96 813.31 78.08

14 Yuan Ping 84 804.92 67.61

15 Yuan Ping 126 813.31 102.48

16 Li Shujun 118 821.69 96.96

17 Li Shujun 72 670.77 48.30

18 Yao Limin 19.1 400 7.64

19 Guan Mingyou 71.6 400 28.64

20 Yao Lixin 29.9 400 11.96

21 Li Zhijun 370 1413.04 522.82

53 22 Li Wanjun 525 1413.04 741.85

23 Li Wanjun 238 1413.04 336.30 Remark: the data is from Suihua Hexing Real Estate Evaluation Co. Ltd.

54

Table 24 Compensation Standard for the Demolished Houses and Attachments of Suiling County Compensation Total of the Type of the Type of Area (unit: ㎡) Standard (Unit: Compensation Fees House Compensation CNY/㎡) (Unit: ‘000 CNY) Brick-concrete 280.00 838.46 234.77 370.00 1,413.04 522.82 Brick-wooden 301.00 637.23 191.81 144.00 670.77 96.59 56.00 754.61 42.26 84.00 804.92 67.61 403.10 813.31 327.85 692.00 821.69 568.61 144.00 830.08 119.53 345.00 838.46 289.27 763.00 1,413.04 1,078.15 Earth-grass 120.60 400.00 48.24 Others 400.00 670.77 268.31 Total 4,102.70 3,855.81 Remark: the data is from Suihua Hexing Real Estate Evaluation Co. Ltd.

6.7 The Progress of House Demolition of Suiling County

83. Up to Jun. 30, 2007, the Government of Suiling County had announced the compensation standard evaluated by Suihua Hexing Real Estate Evaluation Co. Ltd. for one month and a half, but part of house-demolished persons believed that the compensation standard was a little lower and continued to consult the implemented compensation standard with the EA. To sum up, up to Jun. 30, 2007, the house demolition fees had not been paid to the property owners of the demolished houses and the work of house demolition had not been start and those house-demolished persons still lived in the houses that are to be demolished.

55 6.8 Conclusion of the M&E for the Land Acquisition and House Demolition of Suiling County

84. Up to Jun. 30, 2007, the fund in place for permanent land acquisition is accounting for 89% of the total and all land compensation fees for permanent land acquisition have been paid to all land-acquired farmers and the compensation standard is 67% of the one regulated by PRC’s law and relevant regulation of Heilongjiang Province, which gets satisfactions of land-acquired farmers. The work of permanent land acquisition for main roads construction of Suiling County has been finished. Meanwhile, there is no exact statistical datum obtained from temporary land occupation, but it is estimated that there are 80% having been finished with regarding to the explanations of relevant land administration departments. All the land compensation fees paid by the PMO have been paid to all the land-acquired farmers, and misappropriation of the compensation fees has not been found.

85. Up to Jun. 30, 2007, the linking roads sub-project within the scope of Suiling County was not started and the work of land acquisition and house demolition was also not implemented.

86. Up to Jun. 30, 2007, Suiling County has finished the work of demolished house evaluation, but the EA has not achieved the final contract with the house-demolished persons; and the work of house demolition had not been started and new houses had not been constructed by the house-demolished persons. Compared with the RP, the work of house demolition is deferred for 2 months, but it is impossible to bring negative impacts on the project construction as the houses to be demolished are not located in the key section of the project. If the house-demolished persons have not moved to the new houses before the winter of 2007, it is probable to bring negative impacts on the project construction which is implemented in the May of 2008.

56 7 The Implementation of Land Acquisition and Resettlement of

Hailun City

7.1 Identification of the Scope of the Acquired Land

87. Measurements of the actually permanent land acquisition. It is based on the actual achievements obtained from the baseline survey and the registered scope of land acquisition and the amount and quality of various attachments that are contracted among property owners, villager groups, governments of relevant towns or townships, project implementation unit and the national land resource bureau of relevant counties and cities. As for those that are beyond the regulated scope as the design is alternated during the project implementation, the identification of such measurements is also adopted the same method.

88. Measurements of the actually temporary land occupation. If the temporary land occupation is unavoidable, the national land resource bureau of relevant counties and cities should consult with the project construction units and land property owners to together determine the area and scope of the occupied land and the project construction units and land property owner should sign the related contracts. If the grounding crops and attachments are involved in the project construction, the project construction units should implement relevant standards and obtain relevant approvals in terms of regulated procedures.

89. As for the land that is left after the planned land acquired, which is hard to be cultivated by using machines, local farmers require the PMO can acquire such land and pay relevant compensation fees. At present, the EA has no sufficient time to consult with the farmers to calculate the amount of the area of such land and determine relevant compensation standard.

90. As for the identification of the scope of forest land acquisition, the EA signs the compensation contract with Forest Administration Bureau of Hailun City and then the latter signs the same contract with all relevant villages.

7.2 Compensation Standard of Hailun City for Land Acquisition

91. The compensation standard for dry land is CNY 493 per mu, which all adopt the estimated prices regulated in the RP. The compensation standard for forest land also

57 adopts the estimated prices regulated in the RP. The compensation standard for other land is shown as Table 25.

Table 25 The Arrangement of the Compensation for Cultivated Land Acquisition of Hailun City

Land Output Value Resettlement Resettlement Area of Times of Land Times of Compensation of the Land Subsidy Subsidy Item Acquired Land Compensation Resettlement Fees (Unit: (Unit: ‘000 (Unit: ‘000 (unit: mu) Fees Subsidy (Unit: ‘000 CNY/mu) CNY) CNY) CNY) Dry Land 113.70 493.33 10 6 560.93 336.56 897.48 Total 113.70 493.33 10 6 560.93 336.56 897.48 Regulation of Objects the PRC Village Land-acquired

of the Regulation of Committee Farmers Payment the PRC Land-acquired Village Land-acquired Implementation Paid in partly Farmers Committee Farmers Remark: the data is from the RP and National Land Resource Bureau of Hailun City

92. According to relevant regulations of PRC, the land compensation fees, which is paid to village committees, shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land; and the resettlement subsidy, which is directly paid to land-lost farmers for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. The land compensation standard of Hailun City adopts the maximum amount regulated by the law of PRC; in addition, the compensation standard used for land-lost farmers is raised 10 times, which is over 67% of the one regulated by the law of PRC. All of these farmers are satisfactory with such compensation standard and received the land compensation fees. The work of permanent land acquisition, which is used for the main roads construction within the scope of Hailun City, is finished at present.

93. The compensation standard for forest land acquisition is according to the estimated prices regulated by the laws and regulations of PRC.

58 7.3 The Progress of Land Acquisition of Hailun City

94. According to the analysis for the survey datum from National Land Resource Bureau of Hailun City, the work of permanent land acquisition for main road construction with Hailun City is finished, the compensation standard of which gets the satisfactions of farmers. Up to Jun. 30, 2007, the actual area of acquired land calculated by National Land Resource Bureau of Hailun City is shown as Table 26. It is known from Table 20 that the project construction needs to re-acquire new land as a part of the main road readjusted and the originally planned road abandoned. Therefore, it can be concluded that some villages involved in land acquisition in the RP are not affected by land acquisition in fact but some land is added as the readjustment of the construction line (there are 12 villages added to be involved in the land acquisition). To sum up, after land acquisition readjustment, the total area of acquired land with Hailun City is 1,153.77mu, which increase 1035% compared with the RP. In addition, the real landform has a little difference with the one designed, which make the area of acquired land to be changed and increase some land. As for the detailed reasons, it is possible to be further achieved by getting relevant datum from the EA, which needs the EA to spend time to collect such datum

95. The work of forest land acquisition of Hailun City has been finished at finished. The total area of such land is 899.13mu, which increases 204.33mu compared with the planned 694.8mu and reduces 29% than the RP.

59 Table 26 Statistic of Actual Land Acquisition of All Towns (or Townships) of Hailun City (Up to Jun. 30, 2007) Land Acquisition (including temporary land Town(or Administrative occupation and forest land) unit: mu Township) Village Planned Actual Actual/Planned Lixing 9.12 99.6 1,092%

Qunzhong 30.65 74.09 242%

Zhonghou 2.96 147.09 4,969%

Haiwang 7.11 88.05 1,238% Yonghe Town Yonghe 11.39

Jingjian 33.96

Yongyuan 3.12 Temporary land 130.43 occupation of the Town Liuhe 79.13

Shengli 15.81 73.59 465%

Zixin 48.91

Qiansheng 3.02 64.95 2,151%

Qianjin Town Yong’an 2.26 33.08 1,464% Shuangquan 68.41

Qianjin 34.48

Minzhong 11.84 Temporary land 50.86 occupation of the Town Gonghe 17.2

Gongxiang 22.3 Gonghe Township Fenghou 74.75

Zhongping 24.71

Hailun Township Hucheng 8.41

Hainan Town Dongxin 40.51 10.28 25%

60 Temporary land 54.57 occupation of the Town Total of the County 111.44 1,265.21 1,135% Remark: the actual data is from statistics of National Land Resource Bureau of Hailun City, while the planned data is from the RP.

7.4 The Progress of Land Compensation Fees Payment of Hailun City

96. The payment of all the land compensation fees adopts monetary pattern. The procedure of such payment is as the following. Firstly, National Land Resource Bureau of Hailun City signs the land compensation contract with relevant village committees, and then these village committees sign the same contract with land-acquired farmers and eventually National Land Resource Bureau of Hailun City pay the land compensation fees to these land-acquired farmers according to the 10 times compensation standard after they sign their names on the table of land compensation fees acceptance. All the land compensation fees that should be paid to land-lost farmers have been paid to these farmers. The compensation standard is over 67% of the one regulated by the law of PRC. The work of permanent land acquisition has been transferred to the construction unit to be implemented. The land compensation fees that should be paid to village committees have not been paid in, but it does not affect the work of land transferring.

97. Up to Jun. 30, 2007, the progress of land compensation fees payment is shown as Table 27, and the actual compensation fees in place is accounting for 29% of the budget regulated by the RP. As the PMO, at present, has not calculated the actual amount of acquired land and the amount of land compensation fees that is based on the kinds of land and compensation standard, it is impossible to analysis and evaluate the rate that the land compensation fees paid presently is accounting for the total land compensation fees. However, with regarding to the fees have been paid to the farmers affected, which is 10 times the average output value of the three years preceding the acquisition of the cultivated land, and the fees have not been paid to relevant village committees, which is 6 times the average output value of the three years preceding the acquisition of the cultivated land.

98. Up to Jun. 30, 2007, all the compensation fees for forest land acquisition had been paid to the land-acquired farmers.

61 Table 27 Statistic of the Land Compensation Fees Payment of All Villages of Hailun (up to Jun. 30, 2007) Total of Land Resettlement Amount of Compensation Compensation Administrative Village Subsidy (Unit: Household Fund Fees (Unit: ‘000 ‘000 CNY) (Unit: ‘000 CNY) CNY) Lixing Village of 1.97 - 1.97 Yonghe Town Qunzhong Village of 30 222.94 130.58 92.36 Yonghe Town Zhonghou Village of 201.00 119.88 81.12 Yonghe Town Haiwang Village of 24.39 4.78 19.61 Yonghe Town Yonghe Village of 11.84 7.40 4.44 Yonghe Town Jingjian Village of 27.87 17.42 10.45 Yonghe Town Liuhe Village of 34.71 20.79 13.92 Qianjin Town Shengli Village of 14 132.23 79.86 52.37 Qianjin Town Zixin Village of 5.27 - 5.27 Qianjin Town Qiansheng Village of 45.38 27.38 18.00 Qianjin Town Yong’an Village of 6.46 - 6.46 Qianjin Town Shuangquan Village 6.58 - 6.58 of Qianjin Town Dongxin Village of 89 259.24 152.83 106.41 Hainan Town Total 979.88 560.93 418.96 Remark: the data is from the statistic of National Land Resource Bureau of Hailun City.

62

Table 28 Statistic of Forest Land Compensation Fees of Hailun City (Unit: ‘000 CNY) Area of Compensation Plant Compensation Acquired Fees for Resettlement City Storage Fees for Total Land Forest Land Subsidy Fees Broken Wood (unit: mu) Acquisition Hailun City 899.13 4,781.60 582.89 269.74 5,634.27

7.5 Identification of the Scope of House Demolition of Hailun City

99. As for the work of house demolition within the scope of Hailun City, the EA appoints special staffs to directly get together with the contractors and house property owner, according to the project drawing, to determine the scope of house demolition through field measurement. Up to Jun. 30, 2007, the EA had no way to calculate the actual scope of demolished houses, so there is no detailed table to reflect the conditions of house demolition of this county.

7.6 Compensation Standard for House Demolition of Hailun City

100. The EA plans to consult with property owners of the demolished houses to determine the implemented compensation standard, which is based on the compensation standard suggested by the RP. The compensation standard for house demolition of Hailun City may exceed the compensation standard regulated by the RP or at least equal to the compensation standard adopted by the project counties or cities around as the smooth information communication. Up to Jun. 30, 2007, the EA had not achieve house demolition contract with the persons affected, so there is no concrete compensation standard for house demolition of Hailun City at present.

7.7 The Progress of House Demolition of Hailun City

101. Up to Jun. 30, 2007, the work of house demolition within the scope of Hailun had not been started, which dallied over 2 years, but the project construction was not affected as the house needed to be demolished did not locate in the key section of the project.

63 7.8 Conclusion of the M&E for the Land Acquisition and House Demolition of Hailun City

102. Up to Jun. 30, 2007, the progress of land compensation fees payment is shown as Table 26, and the actual compensation fees in place is accounting for 29% of the budget regulated by the RP, the rate of which is low. However, the land-acquired persons are still satisfactory with the compensation standard as it is over 67% than the compensation standard regulated by the law of PRC and relevant regulations of Heilongjiang Province. Although they are not paid land compensation fees at present, the work of land acquisition is implemented smoothly. The acquired land has been transferred to the project construction unit, which bring little negative impact on the project construction. Misappropriation of land compensation fees is not found.

103. Up to Jun. 30, 2007, the linking roads sub-project within the scope of Hailun City has not been started and the work of land acquisition and house demolition has also been implemented.

104. Up to Jun. 30, 2007, the EA has not achieved the final contract with the house-demolished persons; and the work of house demolition had not been started and new houses had not been constructed by the house-demolished persons. Compared with the RP, the work of house demolition is deferred for 2 months, but it is impossible to bring negative impacts on the project construction as the houses to be demolished are not located in the key section of the project. If the house-demolished persons have not moved to the new houses before the winter of 2007, it is probable to bring negative impacts on the project construction which is implemented in the May of 2008.

64 8 The Implementation of Land Acquisition and Resettlement of

Baiquan County

8.1 Identification of the Scope of the Acquired Land

105. The method of measurement for the scope of permanent land acquisition and temporary land occupation keeps the same as the one of other cities or counties.

106. As for the land that is left after the planned land acquired, which is hard to be cultivated by using machines, local farmers require the PMO can acquire such land and pay relevant compensation fees. The PMO has advanced compensation fees for such land partly. At present, the EA has no sufficient time to consult with the farmers to calculate the amount of the area of such land and determine relevant compensation standard.

107. As for the identification of the scope of forest land acquisition, the EA signs the compensation contract with Forest Administration Bureau of Tonghe County and then the latter signs the same contract with all relevant villages.

8.2 Compensation Standard of Baiquan County for Land Acquisition

108. The compensation standard for irrigation land is CNY 667 per mu and the one for dry land is CNY 467 per mu, which all adopt the estimated prices regulated in the RP, which is shown as Table 29. Table 29 the Arrangement of the Compensation for Cultivated Land Acquisition of Baiquan County

Land Resettlement Total Area of Output Value of Times of Land Times of Compensation Subsidy (Unit: Item Acquired Land the Land (Unit: Compensation Resettlement Fees (Unit: ‘000 ‘000 (unit: mu) CNY/mu) Fees Subsidy (Unit: ‘000 CNY) CNY) CNY) Total 656.12 10 6 13798.86 8064.10 21862.96 Objects Regulation of Village Land-acquired

of the the PRC Committee Farmers Payment Land-acquired Village Implementation No.1 Ｐaid In place Farmers Committee

65 Village Land-acquired No.2 Ｐaid In place Committee Farmers Remark: the data is from the RP and National Land Resource Bureau of Baiquan County.

109. According to relevant regulations of PRC, the land compensation fees, which is paid to village committees, shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land; and the resettlement subsidy, which is directly paid to land-lost farmers for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. The land compensation standard of Baiquan County adopts the maximum amount regulated by the law of PRC; in addition, the compensation standard used for land-lost farmers is raised 8--10 times (shown as Table-29), which is over 67% of the one regulated by the law of PRC. However, although all of the house-demolished persons have been paid the land compensation fees, they are still unsatisfactory with the existing compensation standard compared with the 10 times compensation standard adopted by other cities or counties. Up to Jun. 30, 2007, the work of permanent land acquisition for main road construction within the scope of Baiquan County had been finished and the acquired land had been transferred to the project construction unit.

110. The compensation standard for forest land acquisition is according to the estimated prices regulated by the laws and regulations of PRC.

8.3 The Progress of Land Acquisition of Baiquan County

111. According to the analysis for the survey datum from National Land Resource Bureau of Baiquan County, the work of permanent land acquisition for main road construction with Baiquan County is finished, the actual area of acquired land calculated by National Land Resource Bureau of Baiquan County is shown as Table 30. It is known from Table 30 that the extent of land readjustment is much. Most of the villages affected need to be added over 50% of land acquisition, esp. the actual area of the acquired land of Dafuye Village is 53 times the planned area and the one of Xingguo Village is 12 times. In addition, there are 12 villages to be added for land acquisition as the readjustment of the project line. The actual area of acquired land of Baiquan County is 1,229.16mu, which exceeds for 128% compared with the RP.

112. The main reason why so much exceeded land acquisition is induced by the readjustment of the project line. in addition, the real landform has a little difference with the one designed, which make the area of acquired land to be changed and increase some land. As for the detailed reasons, it is possible to be further achieved by getting relevant datum from the EA, which needs the EA to spend time to collect such datum.

66 113. The work of forest land acquisition of Baiquan County has been finished. The total area of such land is 899.13mu, which decreases 204.33mu compared with the planned 694.8mu and reduces 29% than the RP.

67

Table 30 Statistic of Actual Land Acquisition of All Towns (or Townships) of Baiquan County (Up to Jun. 30, 2007) Land Acquisition (including temporary land Town (or Township) Administration Village occupation and forest land) unit: mu Planned Actual Actual/Planned Hexin 185.37 235.58 127% Jiusheng 2.21 60.25 2,726% Lihua 8.67 Sandao Township Fuye 0.48 25.86 5,388% Xiangrong 36.19 58.55 162% Gexin 20.39 Heshun 15.49 74.69 482% Zhengli 5.87 22.1 376% Xingzhan 93.01 154.86 166% Xingguo Town Xingguo 2.79 35.12 1,259% Aizhong 12.27 58.98 481% Shuangren 22.21 51.42 232% Liuhe 24.09 25.19 105% Yongjiu 50.57 80.31 159% Zhenjiao 44.28 82.73 187% Baiquan Township Yixin 27.15 28.97 107% Gongnong 2.95 Limin 18.1 Fengchan Town Xiangqian 13.75 13.66 99% Xinsheng Town Xing’an 36.48 Flax Machined Plant 10.52 Sugar Machined Plant 0.42 Baiquan Township Agricultural Product 14.51 Research Station Baiquan Forest Plant 6.68 Baiquan Nursery and 36.25 Forest Land Sandao Township Irrigation Area 1.6 Toll-gate Xintan Forest Plant 2.28 64.32 2,821% Total of the County 538.01 1,229.16 228% Remark: the actual data is from statistics of National Land Resource Bureau of Baiquan County, while the planned data is from the RP.

68 8.4 The Progress of Land Compensation Fees Payment of Baiquan County

114. The payment of all the land compensation fees adopts monetary pattern. The procedure of such payment is as the following. Firstly, National Land Resource Bureau of Baiquan County signs the land compensation contract with relevant village committees, and then these village committees sign the same contract with land-acquired farmers and eventually National Land Resource Bureau of Baiquan County pay the land compensation fees to these land-acquired farmers according to the 8-10 times compensation standard after they sign their names on the table of land compensation fees acceptance. All the land compensation fees that should be paid to land-lost farmers have been paid to these farmers. The compensation standard is over 33% to 67% of the one regulated by the law of PRC. The work of permanent land acquisition has been transferred to the construction unit to be implemented. The land compensation fees that should be paid to village committees have not been paid in, but it does not affect the work of land transferring.

115. Up to Jun. 30, 2007, the progress of land compensation fees payment is shown as Table 32, The fund in place is accounting for 52% of the budget regulated in the RP. The PMO, at present, has no way to calculate the actual amount of acquired land and the amount of land compensation fees that is based on the kinds of land and compensation standard, it is impossible to analysis and evaluate the rate that the land compensation fees paid presently is accounting for the total land compensation fees. However, with regarding to the fees have been paid to the farmers affected, which is 8 -10 times the average output value of the three years preceding the acquisition of the cultivated land, so it is estimated that the rate of fund in place is about from 50% to 62.5%.

69 Table 31 Statistic of the Land Compensation Fees Payment of All Villages of Baiquan (up to Jun. 30, 2007) Total of Land Resettlement Compensation Compensation Amount of Subsidy Administrative Village Fund Fees Household (Unit: ‘000 (Unit: ‘000 (Unit: ‘000 CNY) CNY) CNY) Hexin Village of Sandao Township 169 1,427.11 531.63 895.48 Jiusheng Village of Sandao 151.77 56.77 95.00 Township Lihua Village of Sandao Township 5.54 1.37 4.16 Fuye Village of Sandao Township 3.56 1.34 2.23 Xiangrong Village of Sandao 14 270.85 101.37 169.48 Township Heshun Village of Xingguo Town 14 156.83 58.37 98.45 Zhengli Village of Xingguo Town 26 44.58 16.43 28.14 Xingzhan Village of Xingguo Town 69 710.70 260.55 450.15 Xingguo Village of Xingguo Town 80 113.04 40.40 72.63 Aizhong Village of Xingguo Town 11 92.68 34.37 58.31 Shuangren Village of Xingguo Town 46.44 14.58 31.86 Liuhe Village of Baiquan Township 61 733.14 272.65 460.49 Yongjiu Village of Baiquan Township 21 1,278.52 478.23 800.28 Zhenjiao Village of Baiquan 114 1,633.98 606.80 1,027.18 Township Yixin village of Baiquan Township 44 206.24 76.07 130.17 Limin Village of Baiquan Township 44.37 13.02 31.35 Xiangqian Village of Fengchan Town 39 101.56 38.03 63.53 Baiquan Flax Machined Plant 43.52 - 43.52 Baiquan Sugar Machined Plant 1.75 - 1.75 Agricultural Product Research 83.73 31.40 52.33 Station Irrigation Area of Sandao Township 3.84 - 3.84 Toll-gate 129.02 47.64 81.38 Xintan Forest Plant 161.11 58.61 102.51 Total 662 7,443.85 2,739.62 4,704.24 Remark: the data is from the statistic of National Land Resource Bureau of Baiquan County.

116. Up to Jun. 30, 2007, the statistic for temporary land occupation of a part of towns (or townships) had not been finished, so it is hard to exactly evaluate and analyse the

70 actual progress of the work of temporary land occupation. However, according to estimate of National Land Resource Bureau of Baiquan County, payment of the compensation for temporary land occupation has been finished over 80%.

117. Up to Jun. 30, 2007, the compensation fees for forest land acquisition had been paid to land-acquired farmers, the detailed condition of which is shown as Table 32.

Table 32 Statistic of Forest Land Compensation Fees of Baiquan County (Unit: ‘000 CNY) Area of Compensation Acquired Plant Compensation Fees for Resettlement County Land Storage Fees for Total Forest Land Subsidy (unit: Fees Broken Wood Acquisition mu) Baiquan County 573.66 483.12 302.09 167.49 1339.17 2,246.87

8.5 Identification of the Scope of House Demolition of Baiquan County

118. As for the work of house demolition within the scope of Baiquan County, the EA appoints special staffs to directly get together with the contractors and house property owner, according to the project drawing, to determine the scope of house demolition through field measurement. Up to Jun. 30, 2007, the EA had no way to calculate the actual scope of demolished houses, so there is no detailed table to reflect the conditions of house demolition of this county.

8.6 Compensation Standard for House Demolition of Baiquan County

119. The EA plans to consult with property owners of the demolished houses to determine the implemented compensation standard, which is based on the compensation standard suggested by the RP. The compensation standard for house demolition of Baiquan County may exceed the compensation standard regulated by the RP or at least equal to the compensation standard adopted by the project counties or cities around as the smooth information communication. Up to Jun. 30, 2007, the EA had not achieved the compensation contract for house demolition with these property owners, so there was no concrete compensation standard.

71 8.7 The Progress of House Demolition of Baiquan County

120. Up to Jun. 30, 2007, the work of house demolition had not been started and the relocation for house-demolished was delayed for 2 month. However, the project construction is not affected as the demolished houses are not located in the key section of the project construction.

8.8 Conclusion of the M&E for the Land Acquisition and House Demolition of Baiquan County

121. Up to Jun. 30, 2007, the fund in place for permanent land acquisition was accounting for 52% of the total (Table31) and all land compensation fees for permanent land acquisition have been paid to all land-acquired farmers and the compensation standard is 33--67% of the one regulated by PRC’s law and relevant regulation of Province, which gets satisfactions of land-acquired farmers. The acquired land has been transferred to the project construction unit and the main road construction was started at April 29, 2007, so the project construction is not affected. Although the actual compensation standard is higher the one regulated by the law of PRC, a part of land-acquired farmers are still unsatisfactory with such compensation standard compared with the ones adopted by other project cities and counties. Misappropriation of the compensation fees is not found.

122. Up to Jun. 30, 2007, the linking roads sub-project within the scope of Baiquan County has not been started and the work of land acquisition and house demolition has also been implemented.

123. Up to Jun. 30, 2007, the EA has not achieve the final contract with the house-demolished persons; and the work of house demolition had not been started and new houses had not been constructed by the house-demolished persons. Compared with the RP, the work of house demolition is deferred for 2 months, but it is impossible to bring negative impacts on the project construction as the houses to be demolished are not located in the key section of the project. If the house-demolished persons have not moved to the new houses before the winter of 2007, it is probable to bring negative impacts on the project construction which is implemented in the May of 2008.

72 9 The Implementation of Land Acquisition and Resettlement of

Linkou County

9.1 Identification of the Scope of the Acquired Land

124. The method of measurement for the scope of permanent land acquisition and temporary land occupation keeps the same as the one of other cities or counties.

125. As for the land that is left after the planned land acquired, which is hard to be cultivated by using machines, local farmers require the PMO can acquire such land and pay relevant compensation fees. The PMO has advance compensation fees for such land acquisition.At present, the EA has no sufficient time to consult with the farmers to calculate the amount of the area of such land and determine relevant compensation standard.

126. As for the identification of the scope of forest land acquisition, the EA signs the compensation contract with Forest Administration Bureau of Linkou County and then the latter signs the same contract with all relevant villages.

9.2 Compensation Standard of Linkou County for Land Acquisition

127. The compensation standard for irrigation land is CNY 747 per mu and the one for dry land is CNY 473 per mu, which all adopt the estimated prices regulated in the RP. 128. According to relevant regulations of PRC, the land compensation fees, which is paid to village committees, shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land; and the resettlement subsidy, which is directly paid to land-lost farmers for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. The land compensation standard of Linkou County adopts the maximum amount regulated by the law of PRC; in addition, the compensation standard used for land-lost farmers is raised 10 times, which is over 67% of the one regulated by the law of PRC. However, up to Jun. 27, 2007, the work of permanent land acquisition for main road construction within the scope of Fangzheng County was finished and the acquired land was transferred to project construction unit to implement the project

73 construction. The EA has paid the entire resettlement subsidy to land-lost farmers and all the land compensation fees to village committees. Table 33 the Arrangement of the Compensation for Cultivated Land Acquisition of Linkou County Output Land Resettlement Area of Value of Times of Land Times of Compensation Total Subsidy Acquired Land the Land Compensation Resettlement Fees (Unit: ‘000 Item (Unit: ‘000 (unit: mu) (Unit: Fees Subsidy (Unit: ‘000 CNY) CNY) CNY/mu) CNY) Total 10 6 6,021.48 9,583.43 15,604.91 Regulation of Village Land-acquired

Objects the PRC Committee Farmers of the Land-acquired Village No.1 Ｐaid Ｐaid Payment Implementation Farmers Committee No.2 Remark: the data is from the RP and National Land Resource Bureau of Linkou County.

129. The compensation standard for forest land acquisition is according to the estimated prices regulated by the laws and regulations of PRC.

9.3 The Progress of Land Acquisition of Linkou County

130. According to the analysis for the survey datum from National Land Resource Bureau of Linkou County, the work of permanent land acquisition for main road construction with Linkou County is finished at Jun. 27, 2007. The statistic of actual area of acquired land of Linkou County is shown as Table 35. It is known from Table 35, the main road within the scope of Linkou County is not changed too much. Compared with the RP, the actual area of acquired land increases for 13%. There are only four villages, which are Dongfeng Village, Kaoshan Village, Hexi Village and Hexing Village, to be added 50% compared with the RP. 131. The work of forest land acquisition of Linkou County has been finished at present. The total area of such land is 60.99mu, which increases 22.74mu compared with the planned 38.25mu and reduces 59% than the RP, the detailed condition of which is shown as Table 41.

74 Table 34 Statistic of Forest Land Compensation Fees of Linkou County (Unit: ‘000 CNY) Area of Compensation Acquired Plant Compensation Fees for Forest Resettlement County Land Storage Fees for Total Land Subsidy (unit: Fees Broken Wood Acquisition mu)

Linkou County 60.99 78.46 78.46

Table 35 Statistic of Actual Land Acquisition of All Towns (or Townships) of Linkou County (Up to Jun. 30, 2007) Land Acquisition (including temporary land Town (or Administrative Village occupation and forest land) unit: mu Township) Planned Actual Actual/Planned Xinghua 41.21

Zhendong 91.47 63.71 70%

Food Machined Company 39.19 Linkou Township Dongfeng 35.38 68.22 193%

Dongguan 46.1 56.78 123%

Forest Land of Linkou Township 13.06

Stockbreeding Administration Bureau of Linkou County 35.05 0%

Kuishan Town Taiping 87.18 87.57 100%

Guchengsi 105.1 104.37 99%

Gucheng Guchengsan 51.18 46.29 90% Township Guchenger 56.75 47.48 84%

Guchengyi 35.38 36.11 102%

Kaoshan 52.02 79.56 153%

Hexi 91.76 151.52 165%

Yongjin 1.41

Jiantang Town Tuchengzi 179.06 157.1 88%

Hexing 3.1 8.39 271%

Xiaobaishun 231.91 194.69 84%

Forest Land of Jiantang Town Forest Administration Station of Diaoling Diaoling Township Township

75 Land Acquisition (including temporary land Town (or Administrative Village occupation and forest land) unit: mu Township) Planned Actual Actual/Planned Sihe 249.51 236.79 95%

Sanjiazi 284.58 338.15 119%

Forest Land of Diaoling Township 47.9

Sandaotong Wudaohezi 230.3 210.12 91% Township Sandao Company 76.93

Total of the County 1865.83 2106.57 113% Remark: the actual data is from the statistic of National Land Resource Bureau of Linkou County and the planned data is the RP.

9.4 The Progress of Land Compensation Fees Payment of Linkou County

132. The payment of all the land compensation fees adopts monetary pattern. The procedure of such payment is as the following. The EA pays the land compensation fees to National Land Resource Bureau of Linkou County, and then the bureau signs the land compensation contract with relevant village committees and pays the land compensation fees to economic administration stations of the project towns (or townships), and eventually these stations directly pays the land compensation fees to land-lost farmers. As for the land compensation fees that should be paid to village committees, the bureau directly pays the fees to the account of these village committees. 133. From May 24 to Jun. 27 of 2007, all land-lost farmers were paid all of the land compensation fees that should be paid to them, the standard of which was over 67% than the one regulated by the law of PRC; and all village committees were also paid all of the land compensation fees that should be paid to them. The permanently acquired land has been transferred to project construction unit. 134. The progress of land compensation fees payment is shown as Table 37 up to Jun. 30, 2007. The actually paid fund is accounting for 70% of the budget shown by the RP. However, the actual rate of fund in place is 100%, whereas the land compensation fees that should be paid to land-lost farmers and village committees are completely paid. 135. Up to Jun. 30, 2007, the statistic for temporary land occupation of a part of towns (or townships) had not been finished, so it is hard to exactly evaluate and analyse the actual progress of the work of temporary land occupation. However, according to estimate of National Land Resource Bureau of Linkou County, payment of the compensation for temporary land occupation has been finished over 90%.

76 Table 36 Statistic of the Land Compensation Fees Payment of All Villages of Linkou (up to Jun. 30, 2007) Land Total of Compensation Resettlement Administration Amount of Compensation Fund Subsidy (Unit: Village Household Fees (Unit: ‘000 (Unit: ‘000 CNY) ‘000 CNY) CNY) Xinghua 304.92 189.69 115.23 Zhendong 476.69 297.14 179.55 Food Machined 291.23 180.82 110.41 Company Dongfeng 514.78 321.29 193.49 Dongguan 426.38 265.36 161.02 Taiping 662.34 413.71 248.63 Guchengsi 787.44 491.44 296.00 Guchengsan 349.95 218.54 131.41 Guchenger 357.79 223.41 134.39 Guchengyi 271.40 169.16 102.24 Kaoshan 847.09 525.26 321.83 Hexi 1,137.24 668.47 468.77 Yongjin 16.80 10.50 6.30 Tuchengzi 1,228.43 759.28 469.15 Hexing 56.77 34.06 22.71 Xiaobaishun 1,482.44 923.86 558.58 Forest Administration of Diaoling - - - Township Sihe 1,750.09 1,085.81 664.28 Sanjiazi 2,424.55 1,458.51 966.04 Wudao 1,643.54 989.02 654.51 Sandao Company 575.04 358.08 216.96 Total 15,604.91 9,583.43 6,021.49

Remark: the data is from the statistic of National Land Resource Bureau of Linkou County.

136. Up to Jun. 30, 2007, all of the compensation fees for temporary forest land occupation had been prepared, but the related contract had not been signed so that the land-lost farmers were paid the compensation fees.

77 9.5 Identification of the Scope of House Demolition of Linkou County

137. House Demolition Administration Office of Construction Commission of Linkou County gets together with contactor and the property owners of the demolished houses to determine the scope of house demolition after field measurement.

9.6 Compensation Standard for House Demolition of Linkou County

138. The EA entrusts Traffic Administration Bureau of Linkou County to take charge of the work of house demolition within the scope of Linkou County. In April of 2007, the EA entrusts Linkou Sida Real Estate Evaluation Co. Ltd. to assess all the houses that should be demolished. The compensation standard for house demolition is shown as Table 37 and Table 38.

Table 37 Details of the Actual Scope of House Demolition and Related Compensation Standard of Linkou County Unit Price of Covered Area Compensation Fees No. Property Owner the Compensation Remark (㎡) (Unit: CNY) (Unit: CNY/㎡) 1 Ma Ping 189.6 501 94989.6 Demolished 2 Liu Fude 313.25 302 94601.5 Demolished 3 Wang Xiaotai 392 280 109760 Demolished 4 Feng Zhenyang 62.13 280 17396.4 5 Yin Yunde 65.4 280 18312 Demolished 6 Jiang Hongyi 42 280 11760 7 Zhao Yongsheng 78 769 59982 8 Ning Guilv 78 760 59280 9 Zhang Jingguo 61.75 350 21612.5 10 Wang Yong 84 760 63840 11 Du Changjin 40 500 20000 12 Xu Xiang 110.5 760 83980 13 Zhang Dianchen 52.2 500 26100 14 Pan Xue 72 700 50400 15 Lv Zihong 72 500 36000 16 Zhang Kunbao 40.5 400 16200 Total 1753.33 784214 Remark: the data is from Linkou Sida Real Estate Evaluation Co. Ltd.

78 Table 38 Details of the Actual Scope of Attachments and Related Compensation Standard of Linkou County Compensation Covered Unit Price of Compensation fees for Well No. Property Owner Area the Compensation Fees Remark (unit : CNY) (㎡) (Unit: CNY/㎡) (Unit: CNY)

1 Tong Yi 63.3 100 6330 2000 2 Tong Yi 72 100 7200 3 Wang Guangjun 62 242 15004 Demolished 4 Liu Fude 0 2000 Demolished 5 Zhang Zezhi 22 100 2200 Demolished 6 Di Guoqing 22 100 2200 Demolished 7 Yin Dequan 21.4 100 2140 Demolished 8 Yin Dequan 21.4 100 2140 1000 Demolished 9 Feng Zhenyang 21 100 2100 1000 10 Jiang Hongyi 0 2000 11 Wang Sheng 41.2 260 10712 12 Wang Yong 48 100 4800 13 Wang Yong 40 100 4000 1000 14 Wang Jiashuang 103 100 10300 1000 15 Zhang Dianchen 0 1000 16 Zhao Yongsheng 81 100 8100 1000 17 Ning Guichang 113 100 11300 1000 18 Shi Ruihai 42.5 100 4250 19 Tan Fuquan 28.7 100 2870 20 Pan Xue 34.4 100 3440 1000 21 Zhang Kunbao 50 100 5000 Total 886.9 104086 14000 118086 Remark: the data is from Linkou Sida Real Estate Evaluation Co. Ltd.

9.7 The Progress of House Demolition of Linkou County

139. Up to Jun. 30, 2007, the work of house demolition had been finished for 30%, but the house-demolished persons had not begun to construct new houses and their relocation was delayed for 2 month. However, the project construction is not affected as the demolished houses are not located in the key section of the project construction. 140. According to the investigation, the reason why the house-demolished persons did not construct new houses is that the procedure of purchasing new housing site is

79 much complex and relevant towns (or townships) had not offered effective assistances to these house-demolished persons.

9.8 Conclusion of M&E for the Land Acquisition and House Demolition of Linkou County

141. Up to Jun. 30, 2007, the compensation fees in place for permanent land acquisition is accounting for 70% of the estimated amount offered by the RP, which is shown as Table 37, and the compensation standard is over 67% than the one regulated by the law of PRC and relevant regulations of Heilongjiang Province. All the compensation fees that have to be paid to affected farmers and village committees having been paid, so the actual rate of fund in place is 100%. The acquired land has been transferred to project construction unit for project construction. Misappropriation of the compensation fees is not found.

142. Up to Jun. 30, 2007, the linking roads sub-project within the scope of Linkou County was not started and the work of land acquisition and house demolition was also not implemented.

143. Up to Jun. 30, 2007, the work of house demolition had been finished for 30%, but the house-demolished persons had not begun to construct new houses and their relocation was delayed for 2 month. However, the project construction is not affected as the demolished houses are not located in the key section of the project construction. If the house-demolished farmers have not moved to the new houses before the winter of 2007, it is probable to bring negative impacts on the project construction which is implemented in the May of 2008.

80 10 The Implementation of Land Acquisition and Resettlement of

Fangzheng County

10.1 Identification of the Scope of the Acquired Land

144. The method of measurement for the scope of permanent land acquisition and temporary land occupation keeps the same as the one of other cities or counties.

145. As for the fragmentary land that is left after the planned land acquired, which is hard to be cultivated by using machines, local farmers require the PMO can acquire such land and pay relevant compensation fees. Up to M&E this time, the PMO has advanced part of compensation fees for the acquisition of such land to the farmers affected. At present, the EA has no sufficient time to consult with the farmers to calculate the amount of the area of such land and determine relevant compensation standard.

146. As for the identification of the scope of forest land acquisition, the EA signs the compensation contract with Forest Administration Bureau of Fangzheng County and then the latter signs the same contract with all relevant villages.

10.2 Compensation Standard of Fangzheng County for Land Acquisition

147. The compensation standard for the dry cultivated land of Fangzheng County is CNY 493 per mu, the irrigation land is CNY 787 per mu, both of which adopt the estimated price regulated by the RP.

148. The method of Fangzheng County for determining land compensation fees keeps the same as Qing’an County. According to relevant regulations of PRC, the land compensation fees, which is paid to village committees, shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land; and the resettlement subsidy, which is directly paid to land-lost farmers for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. The land compensation standard of Fangzheng County adopts the maximum amount regulated by the law of PRC; in addition, the compensation standard used for land-lost farmers is raised 10 times (see table 39), which is over 67% of the one regulated by the law of PRC. Up to Jun. 30, 2007, the work

81 of permanent land acquisition for main road construction within the scope of Fangzheng County was finished and the acquired land was transferred to project construction unit to implement the project construction.

Table 39 Land Compensation Standard of Fangzheng County Output Land Resettlement Total Area of Value of Times of Land Times of Compensation Subsidy (Unit: Item Acquired Land the Land Compensation Resettlement Fees (Unit: ‘000 ‘000 (unit: mu) (Unit: Fees Subsidy (Unit: ‘000 CNY) CNY) CNY/mu) CNY) Total 10 6 4,047.77 6,469.63 10,517.40 Regulation of Village Land-acquired Objects the PRC Committee Farmers of the Land-acquired Village Payment No.1 Ｐaid Ｐaid Implementation Farmers Committee

No.2 Remark: the data is from the RP and National Land Resource Bureau of Fangzheng County.

149. The compensation standard for forest land acquisition is according to the estimated prices regulated by the laws and regulations of PRC.

10.3 The Progress of Land Acquisition of Fangzheng County

150. According to the analysis of the surveyed datum of National Land Resource Bureau of Fangzheng County, the work of permanent land acquisition brought by the main roads construction has been finished. The actual area of the acquired land is shown as Table 41. It can be known from Table 41 that only the area of acquired land of Hongxing Village and Dongsheng Village is over 50% compared with the RP. Compared with other cities and counties, the conditions of land acquisition of Fangzheng County have little changes.

151. The work of forest land acquisition of Fangzheng County has been finished at present. The total area of such land is 311.27mu, which increases 282.17mu compared with the planned 29.1mu and add 970% than the RP, the detailed conditions of which is shown as Table 40.

82

Table 40 Statistic of Forest Land Compensation Fees of Fangzheng County (Unit: ‘000 CNY) Compensation Plant Compensation Area of Acquired Fees for Forest Resettlement County Storage Fees for Total Land (unit: mu) Land Subsidy Fees Broken Wood Acquisition

Fangzheng County 311.27 2.89 2.10 11.51 16.49

83 Table 41 Statistic of Actual Land Acquisition of All Towns (or Townships) of Fangzheng County (Up to Jun. 30, 2007) Land Acquisition (including temporary land Town (or Administration Village occupation and forest land) unit: mu Township) Planned Actual Actual/Planned

Anle 160.72 13.07 100% Anle 147.85

Lianhua 53.47 23.1 43%

Xincheng 25.09 15.03 60%

Fengyu 103.69 65.36 63%

Xiangyang 154.39 164.29 106%

Hongxing 95.83 158.69 166%

Songnan Middle School 8.79

Songnan Farmland 15.44

Liming 95.83 65.05 68%

Fangzheng Pasture 18.74 Plant for Storing Good Seeds of 65.02 53.87 83% Fangzheng County Dongsheng 49.07 74.8 152%

Hongqi Farmland 141.75 Bridge Section of Hongqi 115.52 35.25 31% Farmland Traffic Administration Bureau of 6.6 Fangzheng County Qingshan 18.96 24.76 131%

Zhongxing 40.88 41.26 101%

Plant for Storing Good Seeds 29.86 19.24 64%

Lianhua 9.24

Hongguang 2.21 0%

Jianguo 0.61 0%

Individual Forest Land 7

Total of the County 1011.15 1109.17 110%

84 Remark: the actual data is from statistics of National Land Resource Bureau of Fangzheng County, while the planned data is from the RP.

10.4 The Progress of Land Compensation Fees Payment of Fangzheng County

152. The payment of all the land compensation fees adopts monetary pattern. The procedure of such payment is as the following. The EA pays the land compensation fees to National Land Resource Bureau of Fangzheng County, and then the latter one signs the land compensation contract with relevant village committee and pays the land compensation fees to these village committees, and then the land-lost farmers can get land compensation fees from these village committees. And these village committees have to submit the table that signed by the land-lost farmers who have receive the land compensation fees to National Land Resource Bureau of Fangzheng County for files keeping. Misappropriation of such land compensation fees is not found.

153. Up to Jun. 30, 2007, the EA has paid resettlement subsidy for land-lost farmers and land compensation fees for village committees to National Land Resource Bureau of Fangzheng County, and the latter one has pay all the fund to land-lost farmers and village committees.

154. Up to Jun. 30, 2007, the progress of land compensation fees payment is shown as Table 42, and the actual compensation fees in place is accounting for 21% of the budget regulated by the RP. However, with regarding to all the compensation fees that have to be paid to affected farmers and village committees having been paid, so the actual rate of fund in place is 100%.

155. Up to Jun. 30, 2007, the scope of temporary land occupation of some towns or townships was still redesigned or the site of the one was reselected the site, so the progress of temporary land occupation of Fangzheng County has not been evaluated or analysed exactly at present. However, according to the estimate of National Land Resource Bureau of Fangzheng County, the work of temporary land occupation has been finished 70% of the total.

156. Up to Jun. 30, 2007, all the compensation fees for forest land acquisition had been paid to Forest Administration Bureau of Fangzheng County, but all affected farmers had not gotten such fees as some of them going out for work temporarily.

85 Table 42 Statistic of the Land Compensation Fees Payment of All Villages of Fangzheng County (Jun. 30, 2007) Total of Resettlement Land Compensation Administrative Amount of Compensation Subsidy Fees Village Household Fund (Unit: ‘000 CNY) (Unit: ‘000 CNY) (Unit: ‘000 CNY) Anle 164.65 102.91 61.74 Anle 1,861.81 1,163.63 698.18 Lianhua 290.94 181.84 109.10 Xincheng 189.22 118.26 70.96 Fengyu 822.53 514.03 308.51 Xiangyang 2,016.14 1,260.09 756.05 Hongxing 1,731.61 1,078.97 652.64 Songnan Middle 102.15 63.85 38.31 School Songnan Farmland 194.41 121.50 72.90 Liming 758.67 474.17 284.50 Fangzheng Pasture 159.11 - - Plant for Storing Good Seeds of 635.30 397.06 238.24 Fangzheng County Dongsheng 917.54 573.47 344.08 Hongqi Farmland 1,258.90 - - Bridge Section of 108.24 - - Hongqi Farmland Traffic Administration Bureau of 53.87 30.86 23.02 Fangzheng County Qingshan 268.53 167.62 100.91 Zhongxing 393.62 148.63 244.99 Plant for Storing 315.56 - - Good Seeds Lianhua 116.40 72.75 43.65 Total 12,359.21 6,469.63 4,047.77

Remark: the data is from the statistic of National Land Resource Bureau of Fangzheng County and RP.

86 10.5 Identification of the Scope of House Demolition of Fangzheng County

157. House Demolition Administration Office of Construction Commission of Fangzheng County gets together with contactor and the property owners of the demolished houses to determine the scope of house demolition after field measurement. The work of house demolition is not to much as there are only one farmer’s houses and 4 pounds to be demolished.

10.6 Compensation Standard for House Demolition of Fangzheng County

158. Special staffs appointed by the EA appoints and project construction contractors consulted with the house-demolished persons to discuss about the compensation standard, which is based on the compensation standard offered by the RP and Land Administration Law of PRC and relevant regulations of Heilongjiang Province. Up to Jun. 30, 2007, the final compensation standard for house demolition had not been determined and the EA did not achieve the compensation contract for house demolition with these property owners. However, it can be estimated that the implemented compensation standard is higher than the compensation standard offered by the RP.

10.7 The Progress of House Demolition of Fangzheng County

159. UP to Jun. 30, 2007, the house demolition work of Fangzheng County had not been started, house-demolished persons and the EA had not achieved the final compensation contract and these house-demolished persons had not found appropriate housing sites for their new houses. However, as there are only one household’s houses and 4 pounds to be demolished, the project construction is not affected by such house demolition.

10.8 Conclusion of M&E for the Land Acquisition and House Demolition of Fangzheng County

160. Up to Jun. 30, 2007, the compensation fees for permanent land acquisition in place is accounting for 21% of the estimated amount offered by the RP, which is shown as Table 42, and the compensation standard is over 67% than the one regulated by the law of PRC and relevant regulations of Heilongjiang Province. All the compensation fees that have to be paid to affected farmers and village committees having been paid, so the actual rate of fund in place is 100%. The acquired land has been transferred to project construction unit for project construction. Misappropriation of the compensation fees is

87 not found. The reason why the budget of compensation fees offered by the RP is higher than the actual one will be further analysed after the EA provides the M&E agency with the actual area of acquired land of Fangzheng County and relevant fees.

161. Up to Jun. 30, 2007, the linking roads sub-project within the scope of Fangzheng County was not started and the work of land acquisition and house demolition was also not implemented.

162. UP to Jun. 30, 2007, the house demolition work of Fangzheng County had not been started, and house-demolished persons had not found appropriate housing sites for their new houses. Compared with the RP, the work of house demolition is deferred for 2 months. However, as there are only one household’s houses and 4 pounds to be demolished, the project construction is not affected by such house demolition.

88 11 The Implementation of Land Acquisition and Resettlement of

Tonghe County

11.1 Identification of the Scope of the Acquired Land

163. The method of measurement for the scope of permanent land acquisition and temporary land occupation keeps the same as the one of other cities or counties.

164. As for the fragmentary land that is left after the planned land acquired, which is hard to be cultivated by using machines, local farmers require the PMO can acquire such land and pay relevant compensation fees. Up to M&E this time, the PMO has advanced part of compensation fees for the acquisition of such land to the farmers affected. At present, the EA has no sufficient time to consult with the farmers to calculate the amount of the area of such land and determine relevant compensation standard.

165. As for the identification of the scope of forest land acquisition, the EA signs the compensation contract with Forest Administration Bureau of Tonghe County and then the latter signs the same contract with all relevant villages.

11.2 Compensation Standard of Tonghe County for Land Acquisition

166. The compensation standard for dry land of Tonghe County is CNY 467 per mu, and the one for irrigation land is CNY 667 per mu, both of which adopt the estimated price regulated by the RP.

167. The method of Tonghe County for determining land compensation fees keeps the same as Qing’an County. According to relevant regulations of PRC, the land compensation fees, which is paid to village committees, shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land; and the resettlement subsidy, which is directly paid to land-lost farmers for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. The land compensation standard of Tonghe County adopts the maximum amount regulated by the law of PRC; in addition, the compensation standard used for land-lost farmers is raised 10 times, which is over 67% of the one regulated by the law of PRC. Up to Jun. 30, 2007, the work of permanent land acquisition for main road construction within the scope of Tonghe County was finished and the acquired land was transferred to project construction unit to implement the project construction.

89

Table 43 Land Compensation Standard of Tonghe County Land Area of Output Resettlement Times of Land Times of Compensation Total Acquired Value of the Subsidy Item Compensation Resettlement Fees (Unit: ‘000 Land (unit: Land (Unit: (Unit: ‘000 Fees Subsidy (Unit: ‘000 CNY) mu) CNY/mu) CNY) CNY) Total 10 6 4,584.11 7,223.98 11,808.09 Regulated by Village Land-acquired

Object of the PRC Committee Farmers Land-acquired Village the No.1 Ｐaid Ｐaid Implemented Farmers Committee Payment No.2

Remark: the data is from the RP and statistic of National Land Resource Bureau of Tonghe County.

168. The compensation standard for forest land acquisition is according to the estimated prices regulated by the laws and regulations of PRC, which is shown as Table 44. Table 44 Statistic of Forest Land Compensation Fees of Tonghe County (Unit: ‘000 CNY) Area of Compensation Acquired Plant Compensation Town (or Fees for Resettlement Land Storage Fees for Total Township) Forest Land Subsidy (unit: Fees Broken Wood Acquisition mu) Tonghe County 255.96 132.57 76.79 232.55 441.91

11.3 The Progress of Land Acquisition of Tonghe County

169. It is known from Table 45 that there is little changes had happened in the main road within the scope of Tonghe County, and the area of acquired is increase 10% compared with the standard of the RP. Only the area of acquired land of Hongxing Village and Dongsheng Village is over 50% compared with the RP. Compared with other cities and counties, the conditions of land acquisition of Tonghe County have little changes.

90 170. The work of permanent forest land acquisition for main road construction within the scope of Tonghe County has been finished. The area of acquired forest land is 255.96 mu, which increases 4.4 mu compared with 251.55 mu regulated by the RP and is over 1.75%. Table 45 Statistic of Actual Land Acquisition of All Towns (or Townships) of Tonghe County (up to Jun. 30, 2007) Land Acquisition (including temporary land occupation and Town (or Administration Village forest land) unit: mu Township) Planned Actual Actual/Planned Chengdong 37.06 33.36 90%

Huoju 104.89 118.59 113%

Jinhe 17.94 26.66 149%

Yonghe 30.13 42.16 140%

Daxing 48.91 51.2 105%

Huashu 89.37 90.63 101%

Sima 84.21 98.85 117%

Malanghe 166.54 212.05 127%

Qingshan 21.35 51.96 243%

Hongxing 52.82

Chuankou 159.36 299.88 188%

Qingcha 27.34 70.43 258%

Heping 82.39 109.33 133%

Fengshan 70.41 76.32 108%

Fengyang 119.03 126.31 106%

Tonghe Township 72.25 Forest Administration Station of Fengshan 20.18 Township Tonghe Construction 1.12 Company Individual Forest Land 7.6

Hongxing 42.44 0%

91 Total of the County 1101.37 1561.71 142% Remark: the actual data is from statistics of National Land Resource Bureau of Tonghe County, while the planned data is from the RP.

11.4 The Progress of Land Compensation Fees Payment of Tonghe County

171. The payment of all the land compensation fees adopts monetary pattern. The procedure of such payment is as the following. The EA pays the land compensation fees to National Land Resource Bureau of Tonghe County, and then the latter one signs the land compensation contract with relevant village committee and pays the land compensation fees to these village committees, and then the land-lost farmers can get land compensation fees from these village committees. And these village committees have to submit the table that signed by the land-lost farmers who have receive the land compensation fees to National Land Resource Bureau of Tonghe County for files keeping. Misappropriation of such land compensation fees is not found.

172. Up to Jun. 30, 2007, the EA has paid resettlement subsidy for land-lost farmers and land compensation fees for village committees to National Land Resource Bureau of Tonghe County, and the latter one has pay all the fund to land-lost farmers and village committees. There is only one land-lost household refusing to accept the compensation fees, who believes that all of the compensation fees, that is, according to 16 times, should be paid to individuals.

173. Up to Jun. 30, 2007, the progress of land compensation fees payment of all villages of Tonghe County is shown as Table 46. The actual fund paid is accounting for 63% of the budget regulated by the RP. The reason for such difference will be analysed until the EA offers the final data for such change. However, with regarding to all the compensation fees having been paid to relevant farmers and village committees, it can be concluded that all the land compensation fees are paid in.

174. Up to Jun. 30, 2007, the scope of temporary land occupation of some towns or townships was still redesigned or the site of the one was reselected the site, so the progress of temporary land occupation of Tonghe County has not been evaluated or analysed exactly at present. However, according to the estimate of National Land Resource Bureau of Tonghe County, the work of temporary land occupation has been finished 75% of the total.

92 175. Up to Jun. 30, 2007, all the forest land compensation fees were paid to Forest Administration Bureau of Tonghen County by the EA. This bureau has signed compensation contract with the farmers affected. Up to M&E this time, there are only 5 households having not receive the compensation fees, as their forest land has not measured. All the farmers affected are satisfactory with the compensation standard.

Table 46 Statistic of the Land Compensation Fees Payment of All Villages of Tonghe (up to Jun. 30, 2007) Administrative Total of Resettlement Land Compensation Amount of Village or Other Compensation Fund Subsidy (Unit: Fees (Unit: ‘000 Household Units (Unit: ‘000 CNY) ‘000 CNY) CNY) Chengdong 935.41 584.63 350.78 Huojv 951.65 592.65 359.00 Jinhe 280.30 175.19 105.11 Yonghe 407.96 256.03 151.94 Daxing 537.00 335.62 201.37 Huashu 920.81 575.51 345.30 Sima 968.99 601.35 367.65 Mazhanghe 1,856.67 1,045.18 811.50 Qingshna 248.97 151.50 97.48 Hongxing 498.29 307.66 190.63 Chuankou 1,272.68 780.88 491.80 Qingcha 270.24 172.75 97.48 Heping 754.03 482.41 271.62 Fengshan 563.31 350.70 212.61 Fengyang 980.98 624.48 356.50 Tonghe 360.79 187.44 173.35 Total 11,808.09 7,223.98 4,584.11

Remark: the data is for the statistic of National Land Resource Bureau of Tonghe and the RP.

93

11.5 Identification of the Scope of House Demolition of Tonghe County

176. The EA, House Demolition Administration Office of Construction Commission of Tieli City get together with the property owners of the demolished houses to determine the scope of house demolition after field measurement.

11.6 Compensation Standard for House Demolition of Tonghe County

177. The EA entrusts House Property Administration Bureau of Tonghe County to take charge of the work of house demolition. The bureau evaluated the demolished houses, but the EA believed the evaluated compensation standard is too high and exceeds CNY 10 million compared with the RP. At present, the EA is still consulting with the bureau for the compensation standard. Up to Jun. 30, 2007, they hadn’t achieved any contract and the bureau refused to offer its evaluated compensation standard. It is estimated that the final compensation standard is higher than the one suggested by the RP.

11.7 The Progress of House Demolition of Tonghe County

178. Up to Jun. 30, 2007, House Property Administration Bureau of Tonghe County, house-demolished persons hadn't achieved the compensation contract with the EA and these house-demolished persons hadn’t determined their new housing site. The work of house demolition of Tonghe County was not started.

11.8 Conclusion of M&E for the Land Acquisition and House Demolition of Tonghe County

179. Up to Jun. 30, 2007, the compensation fees in place for permanent land acquisition is accounting for 63% of the estimated amount offered by the RP and the compensation standard is over 67% than the one regulated by the law of PRC and relevant regulations of Heilongjiang Province. All affected households and village committees have received the compensation fees, expect one household who believes that the compensation standard is a little lower refuses to accept the compensation fees. Therefore, the rate of compensation fees in place is 100%, while the rate of compensation fees acceptance is 99%. The acquired land has been transferred to project construction unit for project construction. Misappropriation of the compensation fees is not found.

94

180. Up to Jun. 30, 2007, the linking roads sub-project within the scope of Tonghe County was not started and the work of land acquisition and house demolition was also not implemented.

181. Up to Jun. 30, 2007, the work of house demolition had not been started. As the house-demolished persons live in the urban area of Tonghe County, their expectation for the compensation standard is high and the final compensation fees are probably exceeding CNY 10 million than the budget offered by the RP and it is hard to achieve the compensation contract. Compared with the RP, the work of house demolition is deferred for 2 months. In order to not affect the house-demolished persons to build their new houses before winter of 2007 and avoid bring negative impacts on the project construction in 2008, the People’s Government of Tonghe County should further consult with the house-demolished persons for the compensation standard under the conditions of guaranteeing the actual compensation standard is not less than the estimated standard offered by the RP so that the project can be constructed smoothly.

95 12 Implementation of Land Acquisition and House Demolition and Resettlement of All Related Forest Administration Bureau

182. Up to Jun. 30, 2007, the forest administration bureaus of Linkou, Fangzheng, Xinglong, Langxiang and Tieli had not summarized the conditions of land acquisition and house demolition within their own area under administration, and the EA had not calculated the amount of land acquisition and house demolition of these forest administration bureaus. Therefore, M&E this time cannot evaluate the conditions of land acquisition and house demolition of these forest administration bureaus.

96 13 Conclusion and Recommendation

13.1 Conclusion

183. The datum obtained by M&E this time are sourced from the statistic of the departments responsible of the eight project cities and counties. However, the EA has not offered the statistic of land acquisition and house demolition and the datum from those departments responsible is not complete, so it is hard to analyze why some datum are changed too much at large extent.

184. The governments of the eight project cities and counties devote much attention to the work of land acquisition and house demolition and resettlement of the project, and the national land resource bureaus, traffic administration bureaus and construction commissions of these cities and counties take responsible for the work of land acquisition and house demolition and resettlement, which is the base of the smooth implementation of the project.

185. Headquarters of the project has paid much attention to the work of land acquisition and house demolition and relevant compensation. They overcome various problems and coordinate the work to guarantee the project can be implemented smoothly. They not only obey the project plan to work but also deal with the problems flexibly so as to make the project can be constructed smoothly and timely.

186. According to the survey, up to Jun. 30, 2007, the rate of land compensation fund in place for permanent land acquisition is 49% and there are about 90% of land-acquired farmers being paid the land compensation fees. The other unpaid-in land compensation fund is the compensation fund that is used for the permanent land acquisition of brand line construction and the fund that is paid to relevant village committees. All of the land used for the project construction has been transferred to the project construction contractors. Therefore, the unpaid-in compensation fund will not bring negative impact on the land use of main road construction.

187. The compensation standard adopted by the project corresponds with relevant laws and regulations of PRC and land compensation standard regulated by the Government of Heilongjiang Province and the related police of ADB. There are 85% of the project cities and counties adopting the implemented compensation standard to be 67% higher than the compensation standard regulated by PRC and Heilongjiang Province, and there are 15% of the project cities and counties adopting the implemented compensation standard to be 33% to 67% higher than the compensation standard

97 regulated by PRC and Heilongjiang Province. Most of the affected farmers are satisfactory with the implemented compensation standard and accept it. At present, misappropriation of the land compensation fees is not found. 188. Up to Jun. 30, 2007, all project cities and counties had entrusted the real estate evaluation agencies which have qualification to evaluate the compensation standard for the demolished houses or directly consulted with the house-demolished persons. With such evaluation and consultation, it can be concluded that the implemented compensation standards for house demolition adopted by all project cities and counties are all higher than the compensation standard suggested by the RP. However, the expectation of house-demolished persons for the compensation standard is higher than the evaluated compensation standards, the EA or the departments of the project cities and counties responsible for the work of house demolition only achieved a few of house demolition contract with house-demolished persons, the rate of which was no more than 1% of the total. The work of house demolition had been delayed for 2 months. However, the work of house demolition at present does not bring negative impact on the project construction temporarily, as the project belongs to old road improvement project, the amount of demolished houses is not so much and the demolished houses are not located in the key section of the project construction.

189. Up to Jun. 30, 2007, the EA or the departments of the project cities and counties responsible for the work of house demolition did not have time to summarize the conditions of the facilities of electricity and communication and the attachments on the ground, so there is no relevant datum of such items. According to the investigation, there are 80% of such items being signed compensation contract and started to be demolished, which does not bring negative impacts on the project construction.

190. Up to Jun. 30, 2007, the forest administration bureaus of Linkou, Fangzheng, Xinglong, Langxiang and Tieli had not summarized the conditions of land acquisition and house demolition within their own area under administration, and the EA had not calculated the amount of land acquisition and house demolition of these forest administration bureaus. Therefore, M&E this time cannot evaluate the conditions of land acquisition and house demolition of these forest administration bureaus.

13.2 Recommendation

191. With the faith of constructing the new houses before the winter of 2007 and avoiding to bring negative impacts on the life of house-demolished persons and the project construction implemented in 2008, the EA should achieve the house demolition compensation contract with the house-demolished persons as soon as possible. Governments of the project cities and counties should offer assistances to these

98 house-demolished persons for new housing sites selection and simplify the procedure of housing site examination.

192. Governments of the project cities and counties should also offer assistances to the temporary land occupation and put the work of temporary land occupation into practice as soon as possible to reduce negative impacts on the project construction. The Contractor should get relevant approvals according to some procedures and achieve the accurate statistic datum.

193. The EA or the departments of the project cities and counties responsible for the work of house demolition should get together to finish the measurement and identification of the fragmentary land that to be implemented and determine the related compensation standard as soon as possible.

194. As for the standing crops compensation fees, the EA or the departments of the project cities and counties responsible for the work of house demolition should get the list of farmers who did not plant crops in 2006 and calculate the area of uncultivated land and pay the standing crops compensation fees as soon as possible.

195. The EA should summarize the data of land acquisition and house demolition as soon as possible to make the monitoring and evaluation for the progress of resettlement to be implemented smoothly.

196. The EA or the departments of the project cities and counties responsible for the work of house demolition should pay much attention to keep the files of land acquisition and house demolition and summarize the statistic datum. Especially, the capacity of keeping and dealing with the files of land acquisition and house demolition and summarizing the statistic datum should be much strengthened.

99