Resettlement Planning Document

Resettlement Plan Document Stage: Final Project Number: 40642 August 2008

PRC: Guangxi Wuzhou Urban Development Project – Pingminchong Geohazard Resettlement and Prevention Project

Prepared by Wuzhou Urban and Rural Construction Planning Design Institute

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

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN

The Wuzhou Dongtai State Assets Operation Corporation, the implementation agency (IA), together with the assistance of the Wuzhou Urban and Rural Construction Planning Design Institute has prepared this Resettlement Plan (RP) for the Pingminchong Geohazard Resettlement and Prevention Component as one of the two components under Guangxi Wuzhou Urban Development Project, which is under application for a loan from the Asian Development Bank (ADB).

The RP fully complies with requirements of the relevant laws, regulations and policies of People’s Republic of China, Guangxi Zhuang Autonomous Region and Wuzhou Municipal Government as well as complies with ADB’s policy on involuntary resettlement.

This RP is based on the feasibility study report (FSR) and socioeconomic survey and Wuzhou Project Management Office (WPMO) hereby confirms the content of this RP and will guarantee the land acquisition and compensation budget being provided according to the provisions of aforesaid plan.

This RP will be revised and approved by ADB before its implementation when the detailed design is completed.

LI Ningbo, Vice Mayor, Wuzhou City Chair of Wuzhou City ADB Loan Project Leading Group

August 2008

TABLE OF CONTENTS

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN 2 LIST OF ACRONYMS AND MEASURES 5

EXECUTIVE SUMMARY 7 E1. Description of the Project and LAR Impacts 7 E2. Resettlement Principles and Entitlements 7 E3. Public Participation and Grievance 8 E4. Resettlement and Livelihood Rehabilitation 8 E5. Institutional Arrangement 8 E6. Cost and Schedule 9 E7. Monitoring and Evaluation 9

I. INTRODUCTION 10 1.1 Background 10 1.2 Description of the Project 10 1.3 Preparation of RP 13

II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT 15 2.1 Measures Taken to Avoid or Minimize LAR Impacts 15 2.2 Methods of LAR Impact Assessment 15 2.3 Scope of LAR Impacts 16

III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION 28 2.1 Socioeconomic Profile of Wuzhou City 28 2.2 Socioeconomic Profile of Pingminchong Valley and APs 29 2.3 Gender Analysis 34

IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE 36 4.1 Public Participation Strategy 36 4.2 Methods and Measures of Public Participation 36 4.3 Public Participation during RP Preparation 36 4.4 Women’s Participation 37 4.5 Information Disclosure 38 4.6 Public Participation Plan during RP Implementation 38

V. APPEALS AND GRIEVANCE PROCEDURES 41

VI. LEGAL FRAMEWORK AND POLICIES 43 6.1 Applicable LAR Laws, Regulations and Policies 43 6.2 ADB’s Involuntary Resettlement Policies 43

6.3 Related Laws and Regulation of PRC 44 6.4 Gaps between ADB and Chinese Policies 47 6.5 Compensation Principles and Standards 49

VII. ENTITLEMENT MATRIX 53

VIII. RESETTLEMENT AND REHABILITATION PLAN 57 8.1 Objectives and Principles of Resettlement Program 57 8.2 Resettlement Plan and Rehabilitation Plan 57

IX. COST ESTIMATES 78 9.1 Compensation and Resettlement Costs 78 9.2 Annual Budget 80 9.3 Flow of Fund 80

X. LAR IMPLEMENTATION SCHEDULE 82 10.1 Principles 82 10.2 LAR Implementation Schedule 82

XI. INSTITUTIONAL FRAMEWORK 87 11.1 Project Resettlement Organizational Set-up 87 11.2 Responsibilities 89 11.3 Institutional Capacity Strengthening 90

XII. MONITORING, EVALUATION AND REPORTING 92 12.1 Internal Monitoring 92 12.2 External Monitoring and Evaluation 93 12.3 Reporting Requirements 95

APPENDICES

APPENDIX 1 RESETTLEMENT INFORMATION BOOKLET 97

APPENDIX 2 TOR FOR EXTERNAL MONITORING AND EVALUATION 1

LIST OF ACRONYMS AND MEASURES

ADB Asian Development Bank AF Affected Families AP Affected Person CNY Chinese Yuan CPC Construction and Planning Committee dia. Diameter DI Design Institute DMS Detailed Measurement Survey EA Executing Agency F Females GDP Gross Domestic Product FSR Feasibility Study Report Ha Hectare HHs Households WMG Wuzhou Municipal Government Dongtai Wuzhou Dongtai State Assets Operation Corporation IA Implementing Agency IMA Independent Monitoring Agency LRB Land Resource Bureau LAR Land Acquisition and Resettlement LSSL Least Subsistence Security Line LRB Land Resources Bureau M Males M&E Monitoring and Evaluation MLG Minimum Living Guarantee MRM Management Review Meeting PLG Project Leading Group PPTA Project Preparatory Technical Assistance PRC Peoples Republic of China RCs Resident Committees RIB Resettlement Information Booklet RO Resettlement Office ROW Right of Way RP Resettlement Plan ToR Terms of Reference US$ United States Dollar WF Women’s Federation WHDAO Wuzhou House Demolishment Administration Office WLRB Wuzhou Land Resource Bureau WMG Wuzhou Municipal Government Wuzhou Urban and Rural Construction Planning & Design WURCPDI Institute km2 Square Kilometer % Percentage ≤ Less than or equal to ≥ Greater than or equal to # Number

mu Chinese area measure for land, 1mu = 1/15 ha (1 ha = 15 mu) Chinese currency Yuan CNY 1 Yuan = 1/7.3 $US ($US1=CNY 7.3)

EXECUTIVE SUMMARY

A. Description of the Project and LAR Impacts

Pingminchong is located in Wanxiu District of Wuzhou City, which is one of the 12 geohazard disaster prone areas in Wuzhou City. Each time, the occurrence of geohazard disaster resulted in human casualties and tremendous economic losses to the Pingminchong community. Due to the historical reasons, many houses were built on the slopes with high density of populations and houses. The houses are closely built and attached, it is difficult to carry out the unified infrastructure reconstruction. To eliminate the impact of geological hazard, the Wuzhou Municipal Government (WMG) has planned to remove the people in Pingminchong to a new resettlement site in Zaochong area and other gaohazard free areas of the city to provide the people with safer and more secured living environment, and to rehabilitate the Pingminchong valley for sale through public bidding auction.

The Project will acquire 289 mu state-owned land in Pingminchong valley permanently with two resident committees (RCs) of Pingdong and Pingxi to be affected. A total of 1,816 households or 5,707 populations living in private houses under the jurisdiction of Pingdong and Pingxi RCs (including 7 family-owned shops with 15 self-employees, and 35 teachers and 117 students in Pingminlu Primary School) will be relocated. Of the total demolished houses, 1,745 households have certificates of house property rights and 71 households have no certificates of house property rights, and 216 households are tenants.

Another 1,116 people from 11 institutions and enterprises (5 institutions including 2 schools, 2 state-owned enterprises, 3 collective-owned enterprises, and 1 private-owned enterprise) will also be affected by both residential and non-residential structure demolishment, including 160 employee households or 458 persons living under the administration of public institutions and enterprises and 358 persons living in the dormitories of the affected institutions and enterprises to be relocated due to residential structure demolishment, and additional 152 employees working in the affected enterprises and 148 teachers and students in the affected school but living outside of Pingminchong valley will also be affected by the relocation due to non- residential structure demolishment.

In total, 150,261 m2 structures will be demolished. Of which, 130,851 m2 are residential private houses and 19,410 m2 of non-residential structure demolishment of institutions, enterprises and shops. Of the total area of non-residential structure demolishment, 5,845 m2 houses or buildings are used for living by employee households or employees themselves. In addition, associated productive assets, ground attachments, and basic infrastructures and special facilities will be removed due to the Project construction.

B. Resettlement Principles and Entitlements

Although the resettlement for Pingminchong Geohazard Resettlement and Prevention is voluntary, the WMG has adopted the same criteria of resettlement program as those for involuntary resettlement to ensure that the APs will be compensated such that they will become economically better-off or no worse-off than before the resettlement.

The resettlement principles established for the Project are: (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible; (ii) All people residing, or making a living within the areas acquired for the Project prior to a formally recognized cut-off date should be considered as affected people (AP). They should receive compensation for all losses,

including assets and livelihoods regardless of land tenure and property right status, and should be entitled to rehabilitation assistance; (iii) compensation and entitlements provided are based on market value or replacement value and must be adequate to allow those affected to at least maintain their pre-project standard of living, with the prospect of improvement; (iv) a preferential policy will be provided to vulnerable groups in such things as compensation, minimum living guarantee (MLG), training and employment, and assistance in relocation; (v) all APs are adequately informed on eligibility for compensation, compensation standards, livelihood and income restoration plans, and project timing; (vi) timely payment of compensation to APs; (vii) no land acquisition, demolishment or dispossession of assets will take place prior to satisfactory compensation of APs; (viii) Resettlement costs will be included as part of Project costs; and (ix) close monitoring and timely actions will be carried out to identify and resolve any problems.

C. Public Participation and Grievance

Public consultation has been the key for the preparation of the RP. From December 2007 to April 2008, series consultation activities were carried out with the APs, RCs, institutions and enterprises, and other project stakeholders. APs have participated in the preparation of the RP through the measurement and socioeconomic surveys, and community meetings. Their concerns and comments have been integrated into the RP. Further consultations will be held during the implementation of the RP. A grievance procedure has been established for the APs to redress their resettlement issues, including five channels: (i) RCs or ROs, (ii) district government; (iii) WPMO, WLRB or WHDAO, (iv) Provincial LRB or HDAO, and (v) by taking legal action to the people’s court.

D. Resettlement and Livelihood Rehabilitation

For people losing houses, there are two resettlement options: i) to receive cash compensation; and ii) replacement house at property rights exchange. The PMO, IA, ROs, and local governments will provide necessary assistance for relocation during resettlement implementation. Although the resettlement will not result in impacts on the livelihood and income of the APs, and affected institutions, enterprises and shops, measures to increase the income and living standards of the APs have been proposed, including (i) provision of employment opportunities during the project construction and operational phases; (ii) development of self- employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment and catering services); (iv) provision of technical training to the APs to increase their skills to be employed in other institutions, enterprises and businesses. Relocated institutions, enterprises and shops will be provided with the options of compensation and resettlement, including relocation allowance and compensation for the loss of production and business stoppage and the loss of working days. The same institutions, enterprises and shops will reemploy the affected employees, and no job loss is expected.

E. Institutional Arrangement

PMO and IA will have at least four and 20 full-time staff responsible for land acquisition and resettlement, respectively. The staff from the resettlement office of the IA will take the lead responsibility for coordinating the planning, implementation, financing, and monitoring of land acquisition and resettlement by working closely with the RCs, district government, land resource bureau, house demolishment administration office, and other organizations involved in implementation of the resettlement program, and will be responsible for supervision and monitoring of resettlement. A training program will be organized for the resettlement officers by

the IMA engaged by the PMO.

F. Cost and Schedule

The preliminary cost estimate for the LAR program is about CNY 221.252 million, equivalent to US$ 31.61 million in 2008 prices, including contingencies. The LAR is scheduled to begin with the construction of host area in Zaochong from March 2009 and complete in March 2012, and the APs from Pingminchong valley will move into the new resettlement houses by the end of June 2012. Civil works can not be started before compensation is paid to APs in full in accordance with recently promulgated State Council Decree #31.

G. Monitoring and Evaluation

Internal and external monitoring of RP implementation will be conducted. Internal supervision and monitoring will be done by IA and ROs to ensure compliance with the provisions of the RP. External M&E will be carried out by IMA under contract to the PMO. External monitoring reports will be directly submitted by the IMA in a timely manner to both IA, PMO and ADB. The first one should be submitted by June, 2009.

I. INTRODUCTION

1.1 Background

Pingminchong is located at the bottom of Baiyunshan Mountain, Wanxiu District of Wuzhou City, which is one of the 12 geohazard disaster prone areas in Wuzhou City. It has slope length of 200 meters, slope height of 80 meters, and natural slope angle of 28-35 degrees, manual slope angle at 40-55 degrees. Due to the historical reasons, many houses were built on the slope with high density of populations and houses. As a result, it leads to over capacity of the slopes without slope protection facilities and with shortage of drainage system. The stability of the slopes is poor. Each year, many slopes involve small scale collapses and slides during raining season. The occurrence of geohazard disaster resulted in human casualties and tremendous economic losses to the Pingminchong community. The water and soil erosion is severe and the ecological environment has been damaged seriously. The geohazard disaster becomes a risk to people’s life and properties. In particular, the “8 June 2006” heavy rainstorm caused a large scale and serious flooding, land slides and debris flows. This caused serious collapse of houses, injuries of people, destroys of infrastructures, and economic losses. For the houses which are closely built and attached, the geohazard usually causes chain effects of collapse, which poses threat to the safety of lives and properties living in the area. Due to the geological condition of Pingminchong, it is difficult to carry out the unified infrastructure reconstruction. To eliminate the impact of geological hazard, the Wuzhou Municipal Government (WMG) has planned to remove the people in Pingminchong to a new resettlement site in Zaochong area and other geohazard free areas of the city to provide the people with safer and more secured living environment, and to rehabilitate the Pingminchong area for sale through public bidding auction.

1.2 Description of the Project

Under the component of Pingminchong Geohazard Resettlement and Prevention, the Project will build a new resettlement community in Zaochong and move about 1,816 individual households or 5,707 persons (including 7 family owned shops with 15 family members as employees and 35 teachers and 117 students in Pingminlu Primary School) living in private houses under the jurisdiction of Pingdong and Pingxi Resident Communities (RCs). Of the total demolished private houses, 1,745 households have certificates of house property rights and 71 households have no certificates of house property rights, and 216 households are tenants.

It will also affect 1,116 people in 11 institutions and enterprises (5 institutions including 2 schools, 2 state-owned enterprises, 3 collective-owned enterprises, and 1 private-owned enterprise), including 160 employee households or 458 persons living under the administration of public institutions and enterprises (Wuzhou Postal Office, Cangwu House Administration Office, Wuzhou Real Estate Bureau) and 358 employees living in the dormitories of the affected institution (school) and enterprises (Wuzhou S&T School, Baiyun Social Welfare Residence, and Pingxi Community Office) to be relocated. Additional 152 employees working in the affected enterprises (Baiyun Social Welfare Residence, Baiyun Palm Brush Factory, Baiyun Paper Box Making Factory, and Liyanxun Enterprise) and 148 students in Pingminlu Primary School but living outside of Pingminchong valley will also be affected by the relocation. The Project will then develop the Pingminchong valley into a piece of landslide-free urban land by cutting the mountain slopes and filling up the valley into terraces treated with geological hazard prevention measures. The treated landslide-free land will be made available for urban development.

In total, 150,261 m2 residential and non-residential structures will be demolished, including

130,851 m2 private residential structures and 19,410 m2 of non-residential structure demolishment of institutions, enterprises and shops. Of the total area of non-residential structure demolishment, 5,845 m2 houses or buildings are used for living by employee households or employees themselves. In addition, associated productive assets, ground attachments, and basic infrastructures and facilities will be removed due to the Project construction.

The Pingminchong Geohazard Resettlement and Prevention Project will represent a new model for integrated urban development combining three efforts for: (i) disaster prevention, (ii) human habitat improvement, (iii) redevelopment of old urban areas; and iv) GIS-based geohazard early warning and forecasting system. The following photos present the residential houses prone to geohazard disaster in Pingminchong valley. Figure 1-1 provides the location map of the Guangxi Wuzhou Urban Development Project (GWUDP).

Overview of Pingminchong Valley Houses Prone to Geohazard Disaster

Figure 1-1 Location Map of Guangxi Wuzhou Urban Development Project

1.3 Preparation of RP

In line with the ADB’s Involuntary Resettlement Policy and the relevant laws, regulations and guidelines issued by the governments of People’s Republic of China, Guangxi Zhuang Autonomous Region and Wuzhou City, the RP has been prepared by Wuzhou Urban and Rural Construction Planning and Design Institute (WURCPDI) on behalf of Wuzhou Dongtai State Assets Operation Corporation (Dongtai). The RP will be reviewed and approved by Wuzhou Municipal Government (WMG) and ADB.

The RP preparation is based on the following relevant project documents and legal documents, and the results of public participation and consultations:

(i) Design Basis:

• Feasibility Study Reports; • Statistic Yearbook of Wuzhou City in 2007; • Wuzhou Urban Development Master Plan; and, • “Eleventh-Five Year Plan” of Wuzhou City.

(ii) Legal and Policy Basis

• Land Administration Law of the PRC, amended in 2004; • Management Law of Urban Real Estate of PRC, 1994; • Urban Housing Demolition Management Regulations of the PRC issued in 2001; • Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003; • Guidelines for Valuation on Urban House Demolishment of PRC; 2004; • Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region; • ADB’s Involuntary Resettlement Policy, 1995; • Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; • Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and, • OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006.

(iii) Public Participation and Community Consultation Activities

• Visits to the Project affected areas; • Consultation meetings with district government and resident committee leaders, representatives, and APs between December 2007 and April, 2008; • Sample socioeconomic survey of affected households in January 2008; • Feedback from the distribution of draft Chinese RP to the affected communities on January 6, 2008; • Land acquisition and resettlement survey information between January and March, 2008; • Focus group discussion during the ADB PPTA phase between March and April, 2008; and, • Consultation workshops on environment and resettlement between January and April, 2008.

The goal of RP preparation includes: i) Through optimal engineering design to avoid or reduce the impacts of land acquisition and resettlement; ii) Resettlement Plan is based on the land acquisition and resettlement indexes and the compensation standard, and the goal is to increase the living standards of the APs, at least not worse-off; iii) Development resettlement is promoted; iv) APs are encouraged to participate in the Resettlement Plan preparation, in particular women; and v) Women’s rights and interests should be fully taken into consideration of the Project.

II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT

2.1 Measures Taken to Avoid or Minimize LAR Impacts

In order to avoid or reduce land requisition and resettlement (LAR) impacts to the minimum, engineering alternatives have been carefully reviewed by taking into consideration of safety for lives and properties living in Pingminchong valley. Stabilization options, including adopting slope cutting and leveling, rainwater diversion drainage, retaining walls, anchor beams, and biological slope protection, etc. have been reviewed. “Without” the engineering stabilization options, the Pingminchong Geohazard Resettlement and Prevention Project will relocate 2,895 households, and demolish 227,949 m2 of structure in total. “With” the engineering stabilization options, it will avoid 1,079 households to be relocated, and 77,688 m2 structures to be demolished at the west side of Pingminlu for Pingminchong valley. The engineering works of slope stabilization will be carried out outside of the houses piece by piece, the 1,079 households do not need to leave the area or houses temporarily for slope stabilization, thus no temporary relocation and related issues will be involved. For those who living in the area to be relocated, temporary transfer and return, phased stabilization work so as not disrupt peoples’ lives and enable them to remain or return have been discussed with the APs. However, at the east side of Pingminlu for Pingminchng valley, the houses are closely built and attached, the geohazard usually causes chain effects of collapse. Moreover, due to the geological condition, it is difficult to carry out the unified infrastructure reconstruction and rehabilitate the area through stabilization options. Thus, WMG has decided to relocate all the households (at the east side of Pingminlu) in the geohazard prone “risk” area to Zaochong area and other geohazard free areas of the city. In addition, the majorities of the APs prefer to move to Zaochong Resettlement Area and other places where are geohazard free areas with less flooding, and are much easier to access to commercial business and employment opportunities and social services, and have great prosperity for future economic development. Table 2-1 is engineering stabilization options to minimize LAR and scope of LAR.

The 1,079 households do not need to leave the area temporarily for slope stabilization. The engineering works of slope stabilization will be carried out outside of the houses piece by piece. Thus, the RP does not need to consider temporary relocation and related issues.

Table 2-1 Engineering Stabilization Options to Minimize LAR and Scope of LAR Impacts No. of Affected Mitigation No. of Affected Land to Be Demolished Households before Measures/Scheme Households after Reserved Affected HHs APs Structures (m2) Mitigation Description Mitigation (mu) 1,816 HHs, 5 1,816 HHs, 5 2,895 HHs, 5 institutions Adopting slope cutting and institutions institutions (including (including 2 schools), 2 leveling, rainwater diversion (including 2 2 schools), 2 state- state-owned enterprises, 3 drainage, retaining walls, schools), 2 state- owned enterprises, 3 collective-owned anchor beams, and biological owned enterprises, collective-owned 150,261 289 6,823 enterprises, 1 private- slope protection, etc. to 3 collective-owned enterprises, 1 owned enterprises, and 7 reduce the risk of geohazards, enterprises, 1 private-owned shops, with 227,949 m2 and the number of affected private-owned enterprise, and 7 structures to be demolished households has decreased enterprise, and 7 shops shops

2.2 Methods of LAR Impact Assessment

The physical identification of impacts mainly relies on the statistical data obtained from the relevant government organizations, questionnaires, measurement survey, and discussion with the APs during field investigation, site visits, meetings, individual interviews, etc.

Between January and March, 2008, under the supervision of PMO and IA, the district government and RCs carried out a full-scale property and socioeconomic surveys to obtain basic data and prepare the RP. The survey is carried out to clarify the quantity and number of the properties affected by the Project. This has provided basic data for the scope of the Project impacts, the calculation of losses caused by LAR, socioeconomic impacts, planning on livelihood restoration of the APs, budget, and monitoring and evaluation.

The Project will affect land, houses, institutions, enterprises and shops, auxiliaries, and ground attachments, including basic infrastructures and special facilities. The quantity and category of the acquired lands and demolished structures were surveyed with the participation of the APs. Resident committees and representatives of the residents were consulted on compensation standards and resettlement plan for land acquisition and resettlement.

2.3 Scope of LAR Impacts

1. 2.3.1 Summary of LAR Impacts

The scope of the Project impacts is mainly determined by the measurement survey on the basis of the FSRs. Based on the impacts identified, the construction of the Project will permanently acquire 289 mu state-owned land, including 44.32 mu wood land, 200.4 mu house plot, 2.68 mu motor road, and 41.6 mu other types of lands.

For residential structure demolishment, a total of 1,816 households or 5,707 populations living in private houses under the jurisdiction of Pingdong and Pingxi RCs (including 15 self-employees in the 7 family owned shops, and 35 teachers and 117 students in Pingminlu Primary School) will be relocated. Of the total demolished houses, 1,745 households have certificates of house property rights and 71 households have no certificates of house property rights, and 216 households are tenants.

Another 1,116 persons in 11 institutions and enterprises (5 institutions 1 , 2 state-owned enterprises, 3 collective-owned enterprises, and 1 private-owned enterprise) will also be affected, including 160 employee households or 458 persons living under the administration of public institutions and enterprises (24 households or 60 persons in state-owned enterprise of Wuzhou Postal Office, 18 households or 45 persons in the public-owned institution of Cangwu House Administration Office, 103 employee families or 308 persons in the public-owned institution of Wuzhou Real Estate Bureau, and 15 households or 45 persons in the public-owned institution of Environment and Sanitation Office), and 358 employees living in the dormitories of the affected school and enterprises (48 persons in the state-owned Baiyun Social Welfare Residence, 10 persons in collective-owned enterprise of Pingxi Community Office, 300 teachers and students in public-owned institution of Wuzhou S&T School) to be relocated. Additional 152 employees working in the affected enterprises (12 persons in state-owned enterprise of Baiyun Social Welfare Residence, 45 persons in collective-owned enterprise of Baiyun Palm Brush Factory, 30 persons in collective-owned enterprise of Baiyun Paper Box Making Factory, 65 persons from private-owned Liyanxun Enterprise) and 148 students in the affected public-owned institution of Pingminlu Primary School but living outside of Pingminchong valley will also be affected by the relocation.

For non-residential structure demolishment, 2 state-owned public institutions of Pingminchong

1 It includes 2 schools: Pingminlu Primary School and Wuzhou S&T School.

Primary School and Wuzhou S&T School, 2 collective-owned enterprises of Baiyun Palm Brush Factory and Baiyun Paper Box Making Factory, 1 private-owned Liyanxun Enterprise, and 7 family-owned shops will be demolished. Table 2-2a provides the summary of the affected households and populations living in private houses under the jurisdiction of Pingdong and Pingxi RCs, and Table 2-2b the summary of the affected households and populations living in the structures of institutions and enterprises.

Table 2-2a Summary of the Affected Households and Populations Community in Pingminchong Valley Item Unit Pingdong Pingxi Total Affected Households and Populations Living in Private Houses Relocated Households No. 1,152 664 1,816 Relocated Populations No. 3,579 2,128 5,707 Status of Houses with Property Rights With Property Rights Households No. 1,101 644 1,745 Without Property Rights Households No. 51 20 71 Status of House Use Used by the House Owners Households No. 1,000 600 1,600 Themselves Rented to Tenants Households No. 152 64 216 Note: The number of affected households and APs include 1,816 private households and 5,707 persons. Of which 7 family owned shops with 15 family members as employees and 35 teachers and 117 students in Pingminlu Primary School are accounted in.

Table 2-2b Summary of the Affected Households and Populations Living in the Structures of Institutions & Enterprises Affected HHs and APs (No.) Nature Name of Institutions & Enterprises HHs APs M F Pingminlu Primary School 1 - 148 79 69 Wuzhou S&T School - 3002 186 114 State-Owned Institutions Cangwu Real Estate Bureau 18 45 25 20 Wuzhou Real Estate Bureau 103 308 176 132 Environment & Sanitation Bureau 15 45 20 25 Subtotal 136 846 486 360 State-Owned Baiyun Social Welfare Residence 2 - 60 26 34 Enterprises Wuzhou Postal Office 24 60 32 28 Subtotal 24 120 58 62 Pingxi Community Office - 10 5 5 Collective- 2 Owned Enterprises Baiyun Palm Brush Factory - 45 25 20 Baiyun Paper Box Making Factory 2 - 30 17 13 Subtotal 24 85 47 38 Private-Owned Liyanxun Enterprise 2 - 65 35 30 Enterprise Subtotal - 65 35 30

TOTAL 160 1,116 626 490 Note: 1 Of the total affected populations in Pingminlu Primary School, 148 are students in Pingminlu Primary School but living outside of Pingminchong valley will also be affected; 2 In total, 152 are employees working in the affected enterprises (Baiyun Social Welfare Residence, Baiyun Palm Brush Factory, Baiyun Paper Box Making Factory, and Liyanxun Enterprise).

In total, 150,261 m2 structures will be demolished by the Project. Of which, 130,851 m2 are private residential structures, including 26,170 m2 frame structures, 91,591 m2 brick-concrete, and 13,090 m2 brick-wood, and 19,410 m2 are non-residential structure demolishment of institutions, enterprises and shops, including 9,043 m2 frame structures, 8,195 m2 brick- concrete, 1,538 m2 brick-wood, and 634 m2 simple structures). Of the total area of non- residential structure demolishment, 5,845 m2 houses or buildings (2,150 m2 frame structures and 3,695 m2 brick-concrete) are used for living by employee households or employees.

In addition, associated productive assets, ground attachments, and basic infrastructures and facilities will be removed due to the Project construction. Table 2-2 provides the summary of the land acquisition and resettlement impacts identified.

Table 2-2 Summary Land Acquisition and Resettlement Impacts Permanent Land Residential Structure of Private Structure of Institutions, Enterprises and Administrative Jurisdiction Total Area Acquisition Houses1 Shops 2 Total of Institutions Enterprises Shops Affected Total Area t Structure Total Area f Total Area (No.) (No.) (No.) Popu. Total Area Of which Total Area Affected o Be APs Demolish- District Street RCs 2 APs (No.) or Living for Business (mu) Farmland (mu) (m ) HHs (No.) Demolished (No.) (No.) 2 (m2) (m2) ment (m ) (m2) Pingdong Wanxiu Pingminlu & Pingxi 289.00 0.00 130,851 1,816 5,707 5,845 13,565 19,410 1,116 5 6 7 6,823 150,261

Total 289.00 0.00 130,851 1,816 5,707 5,845 13,565 19,410 1,116 5 6 7 6,823 150,261 Note: 1 The number of affected households and APs include 1,816 private households and 5,707 persons. Of which 7 family owned shops with 15 family members as employees and 35 teachers and 117 students in Pingminlu Primary School are accounted in. 2 In total, 11 institutions and enterprises (5 institutions including 2 schools, 2 state-owned enterprises, 3 collective-owned enterprises, and 1 private-owned enterprise) will be relocated. For the non-residential structure demolishment of institutions and enterprises, 160 employee households or 458 persons living under the administration of public institutions and enterprises and 358 employees living in the dormitories of the affected institutions and enterprises (Wuzhou S&T School, Baiyun Social Welfare Residence, and Pingxi Community Office) will be relocated. In addition, additional 152 are employees working in the affected enterprises (Baiyun Social Welfare Residence, Baiyun Palm Brush Factory, Baiyun Paper Box Making Factory, and Liyanxun Enterprise) and 148 are students in Pingminlu Primary School but living outside of Pingminchong valley will also be affected.

2.3.2 LAR Impacts by Type of Losses

2.3.2.1 Permanent Land Acquisition

The Project will permanently acquire 289 mu state-owned land, including 44.32 mu wood land, 200.4 mu house plot, 2.68 mu motor road, and 41.6 mu other types of lands. After the land acquisition, the Pingminchong valley will be developed into a piece of landslide-free urban land by cutting the mountain slopes and filling up the valley into terraces treated with geological hazard prevention measures. The treated landslide-free land will be made available for urban development.

For the Project construction, no temporary land occupation will be involved as the equipments and materials will be stored within the area of permanent land acquisition.

2.3.2.2 Residential Private House Demolishment and Associated Auxiliaries

A total of 1,816 individual households or 5,707 persons currently living in private houses under the jurisdiction of Pingdong and Pingxi RCs in Pingminchong will be relocated due to residential structure demolishment, of which 7 households (15 family members as employees) are self- employed business owners and 35 persons are teachers and 117 persons are students in Pingminchong Primary School..

In total, 130,851 m2 private residential structures will be demolished, including 26,1702 m2 frame structures, 91,595.7 m2 brick-concrete, and 13,851.1 m2 brick-wood. Of total residential structures to be demolished, 4,800 m2 structures of 71 households have no house certificates, and 20,351 m2 structures of 216 households are rented to tenants. Some associated auxiliaries attached with the individual households, ground attachments, including basic infrastructures and special facilities will be affected also. Table 2-3 provides the impacts of the residential structure demolishment and affected auxiliaries of individual households living in private houses. None of the households losing residential structure will suffer from livelihood losses permanently or transitionally, except the loss from a couple of working days lost for moving for those who are working and from a couple of days of business stoppage for those who are operating family- based business. The occupation of the APs in labor force consists of temporary workers (42.5%), unemployed (21.5%), full-time workers and cadres (17%), seasonable labors (11.5%), business (5.5%), and others (2%).

Table 2-3 Demolishment of Residential Structure for Individual Households Living in Private Houses and Associated Auxiliaries Community in Pingminchong Valley Item Unit Pingdong Pingxi Total Affected Households and Populations Living in Private Houses Relocated Households No. 1,152 664 1,816 Relocated Populations No. 3,579 2,128 5,707 Total Area of Residential Structure to Be Demolished Frame m2 15,070.2 11,100.0 26,170.2 Brick -Concrete m2 61,505.0 30,090.7 91,595.7 Brick-Wood m2 6,214.8 6,870.3 13,085.1 Subtotal m2 82,790.0 48,061.0 130,851.0 Status of Houses with Property Rights Households No. 1,101 644 1,745 With Property Rights Area of Structures m2 78,790 47,261 126,051

Community in Pingminchong Valley Item Unit Pingdong Pingxi Total Households No. 51 20 71 Without Property Rights Area of Structures m2 4,000 800 4,800 Status of House Use Used by the House Owners Households No. 1,000 600 1,600 Themselves Area of Structures m2 68,000 42,500 110,500 Households No. 152 64 216 Rented to Tenants Area of Structures m2 14,790 5,561 20,351 Associated Auxiliaries Kitchen No. 880 6,006 6,886 Toilet No. 702 530 1,232 Balcony No. 750 560 1,310 Water Meter Set 800 707 1,507 Electric Meter Set 820 680 1,500 Coal Gas Set 700 516 1,216 Telephone No. 750 500 1,250 Cable TV Households 762 590 1,352

2.3.2.3 Non-Residential Structure Demolishment

Within Pingminchong valley, 11 institutions and enterprise and 7 shops will also be relocated. A total of 160 employee households or 458 persons (465 persons are males and 351 persons females) living under the administration of 3 public institutions and 1 enterprise (24 households or 60 persons in state-owned enterprise of Wuzhou Postal Office, 18 households or 45 persons in the public–owned institution of Cangwu House Administration Office, 103 employee families or 308 persons in the public-owned institution of Wuzhou Real Estate Bureau, and 15 households or 45 persons in the public-owned institution of Environment and Sanitation Bureau), and 358 persons are living in the dormitories of the affected school and enterprises (48 persons in state-owned enterprise of Baiyun Social Welfare Residence, 10 persons in collective- owned enterprise of Pingxi Community Office, 300 teachers and students in public-owned institution of Wuzhou S&T School) will be relocated.

Additional 152 employees working in the affected enterprises (12 persons in state-owned Baiyun Social Welfare Residence, 45 persons in collective-owned Baiyun Palm Brush Factory, 30 persons in collective-owned Baiyun Paper Box Making Factory, 65 persons from private- owned Liyanxun Enterprise) and 148 students in the affected Pingminlu Primary School but living outside of Pingminchong valley will also be affected by the non-residential structure demolishment2. The number of the affected owners and employees is included in the number of affected households and APs of residential structure demolishment.

In total, 19,410 m2 non-residential houses, including 2 state-owned institutions (schools), 3 enterprises (2 collective-owned enterprises, and 1 private enterprise), and 7 shops will be demolished. Of the total demolished non-residential structures 9,043 m2 are frame structure, 8,195 m2 brick-concrete, 1,538 m2 brick-wood, and 634 m2 simple structures. Table 2-4 is the impacts of non-residential structure demolishment of the affected institutions and enterprises, and Table 2-5 the affected shops. None of the households losing non-residential structure will

2 Another 152 teachers and students in the Pingminlu Primary School and 15 persons in 7 family-owned shops to be affected by the relocation are included in the number of population to be affected by residential structure demolishment.

suffer from livelihood losses permanently or transitionally, except the loss from a couple of working days or business/production stoppage during the moving period. The occupation of the APs consists of employees of institutions and enterprises, teachers and students, and elders living in social welfare residence.

Table 2-4 Non-Residential Structure Demolishment of the Affected Institutions and Enterprises 2 Structures to Be Demolished (m ) Affected HHs and APs (No.) Production Equipments Name of Institutions & Nature Value to Be Enterprises Brick- Total Frame Brick-Wood Simple HHs APs M F (CNY10,000 Relocated Concrete /Yr) Teaching instruments Pingminlu Primary School 1 3,250 2,600 650 - 148 79 69 N/A & equipments Teaching instruments Wuzhou S&T School 2 3,585 2,933 652 - 300 186 114 N/A State-Owned & equipments Institutions Cangwu Real Estate Bureau 250 250 18 45 25 20 N/A Wuzhou Real Estate Bureau 3,025 500 2,525 103 308 176 132 N/A Environment & Sanitation 670 670 15 45 20 25 N/A Bureau Subtotal 10,780 6,033 4,747 136 846 486 360 Baiyun Social Welfare 600 600 - 60 26 34 N/A State-Owned Enterprise Residence 3 Wuzhou Postal Office 4 250 250 24 60 32 28 N/A Subtotal 850 850 24 120 58 62 Pingxi Community Office 250 250 - 10 5 5 N/A Electric box, Collective- Baiyun Palm Brush Factory 5 2,030 1,530 500 - 45 25 20 600 Owned Enterprises transformer, etc. Baiyun Paper Box Making One production line of 1,260 540 720 - 30 17 13 800 Factory 5 paper box making Subtotal 3,540 2,070 250 1,220 24 85 47 38 Private-Owned Liyanxun Enterprise1 3,940 3,006 300 634 - 65 35 30 750 5 sets of machines Enterprise Subtotal 3,940 3,006 300 634 - 65 35 30 750

TOTAL 19,110 8,953 8,003 1,520 634 160 1,116 626 490 750 Note: 1 In total, 300 teachers and students will be affected. Of which 148 students are living in the school. 2 The number of affected teachers and students is living and studying in Wuzhou S&T School. 3 Of the total affected 60 persons, 48 persons (21 males and 27 females) are living in the residence and 12 persons (5 males and 7 females) are employees who are living outside the residence. 4 In Wuzhou Postal Office building, all are households living there. 5 Now the enterprise has been closed. 5 IBID.

Table 2-5 Non-Residential Structure Demolishment of the Affected Shops Status of Status of Structure Employees Nature of Owner- Type of Equipments to Name of Owner Property Business Demolition (No.) Shops ship Structure Be Relocated Rights License (m2) M F Huang Tianqiu Grocery Private Yes Yes Frame 30 1 1 Refrigerator Meng Jingbo Grocery Private Yes Yes Frame 30 1 1 Refrigerator Peng Jinhuo Grocery Private Yes Yes Frame 30 1 1 Refrigerator Meng Yanping Grocery Private Yes Yes Brick-Wood 18 1 1 Refrigerator Li Fengmei Grocery Private Yes Yes Brick-Concrete 82 1 2 Refrigerator Huang Zhiqiang Grocery Private Yes Yes Brick-Concrete 50 1 1 Refrigerator Beauty & Hair Su Hong Private Yes No Brick-Concrete 60 2 Air-Conditioner Dressing Total 300 6 9 Note: The number of the affected owners and employees is included in the number of affected households and APs of residential structure demolishment. The 7 households use part of their residential unit as shops.

2.3.2.4 Ground Attachments, Basic Infrastructures and Special Facilities

Some ground attachments, and basic infrastructures and special facilities will be affected also. Table 2-6 are the impacts of affected ground attachments, basic infrastructures and special facilities. The affected ground attachments including basic infrastructures and facilities will be rebuilt in the new resettlement site by respective public utility company. The compensation of the costs will be used for the Zaochong resettlement site preparation and included in budget of LAR. The affected regular and fruit trees were planted for greening or landscaping of Pingminchong community by the RCs rather than for sale or family consumption, thus no income loss is expected. The compensation will also be used for greening and landscaping in Zaochong Resettlement Area.

Table 2-6 Affected Ground Attachments, Basic Infrastructures and Special Facilities Item Unit Specification Mapping No. Quantity Public toilet m2 1,050 10KV power pole No. 10 380V power pole No. 26 Transformer (KA) No. 3 Water culvert (concrete) m2 0.5*1.0 3,000 Water culvert (slurry) m2 0.5*0.5 4,225 Water culvert (mud) m2 0.2*0.2 500 Gravel road m2 15,000 Water supply pipe（diameter mm） m DN200 500 Water supply pipe（diameter mm） m DN100 1,550 Water supply pipe（diameter mm） m DN80 80 Water supply pipe（diameter mm） m DN70 80 Water supply pipe（diameter mm） m DN65 290 Water supply pipe（diameter mm） m DN50 3,030 Water supply pipe（diameter mm） set DN25 meter 400 Water supply pipe（diameter mm） set DN20 meter 1,000 Drainage pipe（diameter mm） set DN15 meter 400 m GYTS-12B1 J259 500 Telecommunication cable m GYTS-8B1 J258 3,900

Item Unit Specification Mapping No. Quantity Overhead 24 core and Cable TV optical fiber cable line km 5.1 12 core Artery optical fiber cable (main line) km Overhead 26.5 Connection of Cable TV distribution networks HH 1,106 distribution networks Power cable m2 35 250 Young regular tree (10-30 cm) No. 100 Matured regular tree (over 30 cm) No. 20 Scattered fruit tree (1 year) No. 15 Scattered fruit tree (2 years) No. 18 Scattered fruit tree (3 years) No. 11 Scattered fruit tree (above 5 years) No. 20 Old structure m2 149,961

2.3.2.5 Number of Affected Households and Populations

In total, the relocation of Pingminchong community will affect two RCs, 11 institutions and enterprises (5 institutions including 2 shcools, 2 state-owned enterprise, 3 collective-owned enterprises, 1 private-owned enterprise), and 7 family-owned shops. For the residential structure demolishment of private houses, 1,816 households and 5,707 persons will be relocated (including 7 shop owners with 15 family members as employees and 35 teachers and 117 students in Pingminlu Primary School). Another 1,116 persons from 11 institutions and enterprises (5 state-owned institutions, 2 state-owned enterprises, 3 collective-owned enterprises, and 1 private-owned enterprise) will also be relocated by non-residential structure demolishment, including 160 employee households or 458 persons living under the administration of public institutions and enterprises and 358 persons living in the dormitories of the affected school and enterprises to be relocated, and additional 152 employees working in the affected enterprises and 148 students in the affected Pingminlu Primary School but living outside of Pingminchong valley will also be affected by the relocation. A total of 7 family-owned shops with 15 family members as employees will also be affected. Table 2-7 presents the area of structure demolishment and the number of affected households and populations by structure demolishment.

Table 2-7 Area of Structure Demolishment and Number of Affected Households and Population Type of Structure Demolishment RCs/Institutions & Enterprises Ownership Area (m2) Affected HHs (No.) APs (No.) Residential Structure Demolishment with Households Living in Private Houses Private Houses Total Area 48,061 664 2,128 < 10 0 0 10 ~ 20 0 0 20 ~ 30 5 20 Pingxi RC Range of 30 ~ 40 6 21 Area 40 ~ 50 285 805 50 ~ 60 250 860 60 ~ 70 80 300 70 ~ 80 38 116 Pingdong RC Total Area 82,790 1,152 3,579 Range of < 10 0 0 Area 10 ~ 20 0 0

Type of Structure Demolishment RCs/Institutions & Enterprises Ownership Area (m2) Affected HHs (No.) APs (No.) 20 ~ 30 10 40 30 ~ 40 37 106 40 ~ 50 240 819 50 ~ 60 260 780 60 ~ 70 200 691 70 ~ 80 200 550 80 ~ 100 50 170 100 ~ 120 45 130 120 ~ 140 50 115 > 140 60 178 Subtotal 130,851 1,816 5,707 Non-Residential Structure Demolishment of Public Institutions and Enterprises Pingminlu Primary School 1 3,250 148 Wuzhou S&T School 2 3,585 300 Total Area 250 18 45 Cangwu House Range of Admin. Office 2 10 ~ 20 18 45 Area Public Institutions Wuzhou Real Estate Total Area 3,025 103 308 Bureau 2 Range of Area 20 ~ 50 103 308 Total Area 670 15 45 Environment & Range of 10 ~ 20 5 10 Sanitation Office 2 Area 20 ~ 50 10 35 Subtotal 10,780 136 846 Baiyun Social Welfare Residence 3 600 - 60 State-Owned Wuzhou Postal Total Area 250 24 60 Enterprises Office 2 Range of Area 10 ~ 20 24 60 Subtotal 850 24 120 Pingxi Community Office 2 250 - 10 Collective-Owned Baiyun Palm Brush Factory 4 2,030 - 45 Enterprises Baiyun Paper Box Making Factory 4 1,260 - 30 Subtotal 3,540 85 Private-Owned Liyanxun Enterprise 4 3,940 - 65 Enterprise Subtotal 3,940 65 Family-Owned Shops 5 300 - 0 Subtotal 300 - 0

TOTAL 150,261 1,976 6,823 Note: 1 A total of 300 teachers and students will be affected by non-structure demolishment. Of the total, only 35 teachers and 117 students who are living in Pingmingchong valley are accounted in the number of APs to be affected by residential structure demolishment of individual households in private houses. 2 The APs are living in Pingmingchong valley. 3 The demolishment of Baiyun Social Welfare Residence will affect 60 persons. Of which 48 persons are living in the residence, and 12 persons are living outside of the residence. 4 The APs are living outside of Pingminchong Area. 5 The number of APs are included in the number of APs to be affected by residential structure demolishment.

2.3.2.6 Impacts on Vulnerable Groups

A total of 351 households with 1,004 people or 17.76% of the total individual households have

been identified as vulnerable households to be affected in Pingminchong Geohazard Area of Wanxiu District. Table 2-8 presents the profile and housing condition of vulnerable groups to be affected by the Project. No indigenous people or ethnic minorities will be adversely affected by the Project. The living condition of the vulnerable groups in terms of housing type and size is provided in Table 2-8. All 1,004 vulnerable households have certificates and are not renting any living structures to other people. Of the total affected vulnerable groups, 19 households with “five guarantees” and 32 households living under MLG fund of Wuzhou Civil Affairs Bureau without extra income source, other vulnerable households are working as mini-bus driver, safeguard, factory worker, hotel and restaurant servant, etc. Since all of them will move to Zaochong area, they will maintain their original jobs and their income sources will not be affected.

Table 2-8 Profile and Housing Condition of Affected Vulnerable Groups Households Households Households with Women-Headed with “Five Living under Disabled Small Residential Total Household Gurantees”1 MLG2 Area3 Affected Households and Populations Living in Private Houses (No.) Households 19 32 36 103 161 351 Populations 46 102 78 322 456 1,004 Residential Structure (m2) Frame 10 10 Brick-concrete 4 12 6 52 28 102 Brick-wood 15 20 30 41 133 239 Ranges of Structure Area (No. of Households) < 50 m2 161 161 50 m2 – 60 m2 10 30 29 20 89 60 m2 – 70 m2 9 2 7 73 91 70 m2 – 80 m2 10 10 80 m2 – 100 m2 0 > 100 m2 0 Income Mini-bus driver, safeguard, factory worker, hotel and MLG Sources restaurant servant Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/Promises; 2 Households living under MLG are classified as urban poor households; and, 3 Households with small residential area are those households with residential area of less than 12 m2 per capita.

III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION

2.1 Socioeconomic Profile of Wuzhou City

Wuzhou is a medium-sized city of Guangxi Zhuang Autonomous Region – one of the twelve less developed western provinces and autonomous regions that are targeted by the Government for support under the National Strategy for Development of the West. It is one of the most convenient corridors to connect with Gaungdong, Macau and Hong Kong. With a population of 3.11 million covering a land area of 12,588 km2, Wuzhou Municipality has three urban districts, three counties, and one city at county level under its jurisdiction. In the context of the Project, Wuzhou City refers only to the “city proper” comprising the three urban districts of Wanxiu, Dieshan, and Changzhou. Wuzhou City is a mountainous area of approximately 1,097 km2 with a total population of approximately 489,000 or 149,227 households in 2007, including an urban population of 452,000 and a developed urban area of 32.5 km2. According to the planned goals of the city, it calls for a total urbanized area of 411.2 km2 to serve a population of approximately 683,400.

The City is generally divided into two parts. The eastern part consists of only one urban district of Wanxiu District, which borders Guangdong Province in the east, the Guijiang River in the west, the Xijiang River in the south and Baiyunshan Mountain in the north, is the old “city centre” that has a history of over 2,000 years. The western part, consisting of Dieshan and Wanxiu Districts, has been built in the past fifteen, twenty years. For the Wanxiu District, most of the structures were built on terraces in small valleys3, including the Pingminchong, that run from the south to the north. Dieshan and Wanxiu Districts in the western part of the city have a similar topography to the south and the north, but the central strips of the two newer districts were built primarily by cutting the hill tops and filling the bottoms of the valleys. Yet, because of very restrictive land availability and due to the lack of proper planning, many residential and commercial structures are situated too close to geological hazards-prone areas that frequent disasters (primarily mudslides) result in loss of properties and lives.

The economy of Wuzhou City has kept fast and sustainable growth in recent years. In 2007, Wuzhou Municipality’s GDP reached CNY 32.68 billion, representing an increase of 15.7% over 2006. The fiscal revenue amounted to CNY 2.7 billion, or an increased of 17.1% over 2006. The value of exports grew by 10.7% to US$322 million. The retail sales of consumer goods amounted to CNY 11.13 billion, or an increase of 13.5% over 2006. In 2007, the average per- capita disposable income for urban residents grew by 20.2% over 2006 to CNY 11,362. The average per-capita net income for farmers grew by 14.5% over 2006 to CNY 3,272. More than 15,900 jobs were newly created in 2007. The registered urban unemployment rate was 3.95% or 0.55% lowered than the government-controlled threshold. The basic infrastructure construction of the city has had further improvement and the urban development has grown rapidly.

Wuzhou is one of the earliest industrial bases in Guangxi Zhuang Autonomous Region. As early in the 1920s, Wuzhou was renowned for its thermal power, matches, soap, battery, machinery, textile, metallurgical, pharmaceutical and chemical industries. Today, Wuzhou’s major industries include textile, chemical, food, machinery, electronics, plastics, tannery, pharmaceutical, garment, ship making, printing and light. In 2007, the industrial output of large-scale enterprises grew by 53.8% over 2006 to CNY 26.95 billion. The total profit of the large-scale enterprises grew by 83.44% to CNY 893 million. The industrial output contributed to 64.6% of the economic

3 The local name for valley is “chong”. For example, Pingminchong literally translates into “Pingmin Valley”.

growth in Wuzhou. The export-oriented industrial zone covers 6 km2 at present, and is planned to expand to 60 km2. Enterprises in the zone can benefit not only from preferential policies for open coastal cities and western development but also from local policy of income tax reduction and exemption.

With 95,000 ha or 1.425 million mu of farmland, Wuzhou is also an important commodity grain base for Guangxi Zhuang Autonomous Region. Main crops of Wuzhou include rice, sweet potato, corn, legume, wheat, sugarcane, cassava, sericulture, peanut, and gardening products include fruit tree, vegetable and flowers. The suburb of Wuzhou City is mainly engaged in vegetable, aquatic and livestock.

Wuzhou takes pride in: i) being the largest turpentine production base in China; ii) being the largest synthetic gemstone production base in the world; ii) having China’s largest variation of types of bridges; iii) having 2.1 billion cubic meter of granite reserve; iv) having China’s earliest memorial for Sun Yet-Sen; v) being the largest pet dogs breeding base in Southeast Asia; and vi) being the largest Presbytis francoisi breeding base in Asia. The total employment stands at approximately 190,000 people.

2.2 Socioeconomic Profile of Pingminchong Valley and APs

This survey was undertaken by the Wanxiu District Government (WDO) and RCs under the supervision of PMO and IA between January and March 2008. Its main objectives were: (i) to compile socioeconomic information on the APs likely to lose land or property to the project component; (ii) to obtain information on the extent of APs knowledge of the proposed project; and (iii) to identify APs’ preferences regarding land acquisition, house relocation and income rehabilitation measures.

The survey covers all affected residential households in 2 RCs of Pingdong and Pingxi, and affected institutions, enterprises and shops. A total of 1,976 households or 100% and 6,823 APs were surveyed. Table 3-1 presents the surveyed RCs and households.

Table 3-1 Surveyed RCs and Households Surveyed Households District District Administration Office RCs & Organizations No. % Pingdong Community 1,152 100% Pingxi Community 664 100% Wanxiu District Chengnan Office Subtotal 1,816 100% Institutions & Enterprises 160 100% Subtotal 160 100%

TOTAL 1,976 100%

Pingminchong Geohazard Resettlement and Prevention Project is situated at the bottom of Baiyun Mountain, in the Pingdong Community and Pingxi Community, Pingmin East Road of Wanxiu District. The residential houses are mainly the private houses, and houses and buildings of 4 institutions and 3 enterprises. The non-residential structures are mainly the 2 schools, 3 enterprises, and 7 shops. Most of the residents living in Pingminchong are laid-off workers or unemployed people which are classified as low-income group. They will be allocated with equivalent area of houses in the Zaochong Resettlement Site, with improved quality of

structures and living environment. The young people are mainly engaged as temporary workers and workers for enterprises. Their annual disposal income per capita is CNY 9,040. Table 3-2 provides the brief economic status of affected RCs.

Table 3-2 Economic Status of Affected RCs RCs Item Pingdong Pingxi Total Households (No.) 1,255 664 Total Population (No.) 4,847 2,128 Annual Disposal Income Per Capita (CNY) 9,305 9,506 Industrial Structure Secondary Industry 70% 65% Tertiary Industry 30% 35% Source: Survey conducted by the RCs and Wanxiu District Government.

3.2.1 Demographic Features of APs

The detailed demographic features of surveyed APs are listed in Table 3-3, including age, population composition, education and occupation by gender.

The ages of the surveyed population showed that the population is approximately distributed in normal situation with the majority of the population between 20-50 years old who represent the major workforce and account for 44% of total sampled population. The age intervals are divided based on the population composition, e.g., the students accounted for 19% of the total surveyed population, which is the same with the population of the 7-19 years old (19%). According to this definition, therefore the total work force accounts for 68% of the surveyed population.

Over half of the household members have received junior middle school education, and primary school education ranked second. A total of 13.5% of surveyed members have finished or are pursuing high school. The rest 23.9% have received education from vocational school, college and university. The 15 illiterate respondents (0.25%) are those who are over 55 years old.

The occupation is characterized by the facts that the old people and women generally stay at home, engaged with animal raising and handicrafts while some women go out for some temporary jobs and the young people leave home for seasonable labors. Of the total surveyed population, none of them are engaged in agricultural farming. Unemployed people and temporary workers account for 64%, seasonable labors account for 11.5%, commercial traders account for 5.5%, full-time workers account for 12.5%, and other occupations such as public servants, cadres of institutions and RCs account for the remaining 4.5%.

Table 3-3 Demographic Features of the Surveyed Populations Male Female Total Item Number % Number % Number % No. of Households: 1,976 6,823 100 Household Size: 3.45 Age ≤6 years 166 4.56 175 5.50 341 5 7-19 Years 664 18.24 632 19.85 1,296 19 20-35 Years 758 20.84 538 16.90 1,296 19 36-50 Years 923 25.37 783 24.59 1,706 25 51-60 Years 705 19.38 660 20.73 1,365 20 61-70 Years 226 6.20 252 7.91 478 7 ≥71 197 5.41 144 4.52 341 5 Total 3,639 100.00 3,184 100.00 6,823 100 Composition Kids 182 5.00 159 4.99 341 5 Students 691 18.99 605 19.00 1,296 19 Labor Force 2,475 68.01 2,166 68.03 4,640 68 Retired* 291 8.00 255 8.00 546 8 Total 3,639 100.00 3,184 100.00 6,823 100 Education Illiterate 9 0.25 8 0.25 17 0.25 Primary school 910 25.01 796 25.00 1,706 25.00 Middle school 1,359 37.35 1,189 37.34 2,548 37.35 High school 491 13.49 430 13.51 921 13.50 Vocational School 455 12.50 398 12.50 853 12.50 College 255 7.01 223 7.00 478 7.00 University or Above 160 4.40 140 4.40 300 4.40 Total 3,639 100.00 3,184 100.00 6,823 100.00 Occupation Unemployed 531 21.49 466 21.51 997 21.5 Temporary Workers 1,051 42.48 921 42.49 1,972 42.5 Seasonable Labors 285 11.51 249 11.50 534 11.5 Business 136 5.50 119 5.50 255 5.5 Workers 309 12.50 271 12.50 580 12.5 Cadres 112 4.51 97 4.49 209 4.5 Others 49 2.01 44 2.01 93 2.0 Total 2,473 100.00 2,167 100.00 4,640 100.0 Note: *Retired means 60 years old and above for males and 55 years old and above for females, thus the labor sources related to those who are above 16 years old but not at school and below these ages. Source: Socioeconomic Survey of APs, January 2008.

3.2.2 Housing Conditions

All of the houses in the Project area will be relocated. The survey results show that the average structure area of each household is about 72 m2, with the largest area at 500 m2. Table 3-4 is the area of structure for the surveyed households by income ranges.

Table 3-4 Area of Structure for the Households by Income Range (N=1,816) Poor1 Low Income2 Middle Income Households (No.) 87 864 865 APs (No.) 226 2,981 2,984 Original Residential Area by Households < 50 m2 21 249 313 50 m2 – 60 m2 55 270 185 60 m2 – 70 m2 11 160 109 70 m2 – 80 m2 135 103 80 m2 – 100 m2 29 21 > 100 m2 155 Structure Poor Low Income Middle Income Frame 45 Brick-concrete 22 499 337 Brick-wood 65 517 331 Residential Area by APs Poor Low Income Middle Income < 50 m 48 729 1,060 50 m2 – 60 m3 135 695 641 60 m2 – 70 m3 75 474 330 70 m2 – 80 m3 425 390 80 m2 – 100 m2 79 91 > 100 m2 535 Income Sources Temporary Work 36 604 323 Stable Job (institutions & enterprises) 361 Small business 104 259 Government subsidy (MLG) 51 Others 28 50 Note: 1.The definition of the poor households are those households living under minimum living guarantee (MLG) with average monthly income below CNY 195/capita, the disabled, and households with “Five Guarantees”. 2 The definition of low income households are those with income below CNY 273/capita.

For 216 households renting houses in Pingminchong, the rental cost varies from CNY 100 to CNY 500 per month according to the different area of units. Table 3-5 provides the area of house rental situation in Pingminchong. Most of the rental houses were constructed in 1980s. The houses had no individual toilet and solid waste disposal and public toilet facility is used. The community solid waste disposal and individual household water supply facilities are available. In addition, the paved road and housing stock were old with fairly good condition. Most of the lessees laid-off workers and retired persons live on the government support with income of CNY 3,000 less than city average level. About 70% of them can not afford the houses due to their income level is low, therefore they are renting houses to live. They will move into the rental houses in Zaochong resettlement area.

Table 3-5 House Renting Situation of Households Range of Structure Area Range of Rental Costs Per Month (CNY) Lessee Households (No.) < 50 m2 100 96 50 m2 – 60 m2 120 75 60 m2 – 70 m2 180 45 70 m2 – 80 m2 250 80 m2 – 100 m2 300 > 100 m2 500 Total 216

Most surveyed houses are brick-concrete structures. Of the surveyed households, 70% of their houses are brick-concrete, 20% concrete frame, and the remaining 10% brick-wood.

3.2.3 Land Use

The total area of land is 192,600 m2 (289 mu), including: 133,599 m2 house plot, 29,546 m2 wood land, and 1,783 m2 road. All the lands are owned by the State.

3.2.4 Financial Situation of Households

The incomes are divided into two categories: household members working for the institutions or enterprises and household members self-employed. The expenditures and savings of each household are calculated mainly based on “with fixed income” or “without fixed income” status. Table 3-6 provides the average financial situation of surveyed households in 2007.

Table 3-6 Average Financial Situation of Surveyed Households in 2007 Financial Situation of Households (CNY/Capita) Item Minimum Maximum Mean Std. Deviation Average Income Per Capita 0 28,000 9,040 6,234 Average Expenditure Per Capita 5,000 30,000 8,400 1,653 Average Savings Per Capita -5,000 20,000 3,000 5,862

To understand the financial status of the surveyed households, it is necessary to understand the income sources and expenditure patterns. Statistical data showed that the income shares of Pingminchong valley are ranked at middle lower level of Wuzhou City and the income shares of the households are relatively close each other. As Table 3-7 indicates that the income in the area mainly comes from seasonable labor (50%) from outside, 20% from regular salary and 20% from business, and 10% from others. The expenditures spent on children’s education accounted for 30% and ranked second, just behind food expenditure. For the households who have debts are due to money borrowing for paying their children’s tuition or related costs, particularly for paying education costs for higher education.

After relocation, the APs can keep their original jobs. For those who are engaged in temporary work, the main activities include food catering service, work in private factory, and other social service industries with income of CNY 700-1,000/month. For those who have stable job position in institutions and enterprises, the income level ranges from CNY 1,300 to CNY 2,500 per month. For those operating small business, the income varies from CNY 500 to CNY 2,000 per month depending on business situation. For those poor households mainly living on government assistance (MLG), some may engage in craft work with earnings below CNY 300 per month.

Table 3-7 Income Sources and Expenditures of Surveyed Households in 2007 Items Amount (CNY/Household) Percentage (%) Income Sources Seasonable Labor 15,594 50 Regular Salary 7,018 20 Business 7,018 20 Others 1,558 10 Subtotal 31,188 100 Expenditure Food 10,143 35 Clothes 4,347 15

Items Amount (CNY/Household) Percentage (%) Water, electricity and gas 1,208 4 House Maintenance 1,980 7 Education 8,694 30 Health Care 782 2.7 Culture Recreation 667 2.3 Transport & Communication 1,159 4 Subtotal 28,980 100

Savings 2,208

On average, the expenditure on house maintenance is CNY1,980 per household each year, which was spent on water-proof roof, slope maintenance for prevention of land slide around the houses. During land slides time, they will be evacuated to safe places for temporary transition period with integrated arrangements by the local government.

3.2.5 Identification of Vulnerable Group

The vulnerable group has been identified based on the survey results. Vulnerable group including those who have financial debts, households living under minimum living guarantee (MLG), households enjoying the five guarantees (Households Given/With/Receiving/Enjoying Five Assurances/Promises), disable people, women-headed household, and the households with housing area less than 12 m2 per capita. Of the total surveyed 1,976 households, 351 households or 17.76% have been identified as vulnerable households. These households who live in the public houses rented from the Civil Administration Bureau or their former institutions/enterprises. Most of these households are laid-off families and live on government support.

2.3 Gender Analysis

This section will discuss the gender issues related to the land acquisition and resettlement impacts, including three aspects: (i) gender difference in education, (ii) gender difference in occupation and income, and (iii) gender views related to resettlement.

3.3.1 Gender Difference in Education

Based on the survey data, it is clearly shown from the Project affected area that the overall education levels of women are lower than men. The survey data clearly shows that except women has higher proportion for primary school and slightly higher rate of illiterate, other higher education women received is lower than men. Table 3-8 presents the education difference between male and female.

Table 3-8 Education Difference between Male and Female (%) Primary Middle High Vocational University or Gender Illiterate College School School School School Higher Male 0.2 20 40.0 14 13 8 4.8 Female 0.3 30 34.7 13 12 6 4.0

3.3.2 Gender Difference in Occupation and Income

Similar to and interlinked with the education background of men and women’s groups, women engaged in working are 7% more than men, but 3% less engaged in seasonable laborers

outside than men, and 2% less worked as full-time workers than men. The shares of women’s income in household’s total income range from 5% to 90%, with an average at 38%. Table 3-9 presents women’s share of household income in 2007.

Table 3-9 Women’s Share of Household Income in 2007 Range of Household Household % of Total % of Women’s Share of the Average Women Monthly Monthly Income (No.) Household Total Household Income Income (CNY/capita) < 400 65 3.58 52.20% 183 400 - 600 150 8.26 46.70% 234 601 - 800 543 29.90 37.90% 265 801 - 1000 451 24.83 41.10% 370 1001 – 1500 286 15.75 36.70% 477 1501 - 2000 202 11.12 28.20% 508 2001 - 2500 65 3.58 38.20% 497 > 2,500 54 2.97 43.50% 1,175 Total ;;;;;; 100 38.30%

2. 3.3.3 Gender Perspectives on Resettlement

As a result of geological hazard impacts, the residents in Pingminchong valley are in great anxiety during the rainy seasons. They worried a lot about their houses, the safety of people’s life and properties. Each year, they have to spend some money on the repair of their houses. The survey results show that 80% of the households in Pingminchong valley would like to move out of the area and it would be the sooner the better. The remaining 20% persons do not mind that much as their houses are at the bottom of the Pingminchong valley which have less risks of geohazard. Of the total APs, 75% women would like to move out of Pingminchong valley as early as possible and expect enjoy equal rights and entitlements with men, and 90% men also would like to move out to other places in the city as soon as possible. The remaining 10% of the men are mainly elder people who are accustomed to living in Hedong area and hope to relocate in the close surroundings.

When asked the surveyed APs households on the resettlement issues, the majority of the males and females, in particular the low-income and vulnerable households request fair and timely compensation if their house/buildings have to be demolished. They hope that the government can provide some preferential policies for them. Based on the survey, it indicates that about 80% of females would like to get training to improve their skills or more job opportunities. It has a strong implication that all of these concerns raised should be incorporated in the planning and implementation of resettlement program, and relevant mitigation measures should be formulated and implemented.

IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE

4.1 Public Participation Strategy

Great attention has been paid to public participation under the Project during the planning, and RP preparation. Comments have been solicited from communities, government organizations and affected households.

4.2 Methods and Measures of Public Participation

During the preparation of the project FSR, PMO, IA and DI have held various meetings with the relevant organizations and representatives of communities regarding the land acquisition and resettlement issues and compensation policies. Comments and suggestions have been obtained on the resettlement site, compensation, and livelihood and income rehabilitation plan. The RP has been prepared based on the above.

During the project implementation phase, PMO, IA and RO will encourage local communities to involve in the land acquisition and livelihood rehabilitation and income restoration process.

4.3 Public Participation during RP Preparation

During the RP preparation, all relevant organizations and representatives have participated in the following activities:

(1) During the measurement survey of land acquisition and resettlement between January and March 2008, all levels of relevant organizations responsible for land acquisition and resettlement, community group, representatives of residents (including women) have been involved in the survey activities. During the survey, women were basically on the spots, they carefully checked and read the index investigation final results. (2) From December 2007 to March 2008, the PMO, IA and DI organized many meetings with district leaders, representatives, and APs to publicize the existing national, provincial and municipal resettlement policies and ADB’s Policy on Involuntary Resettlement. Comments have been solicited from the participants for minimizing the project impacts, and formulating the compensation rates, and resettlement and rehabilitation plan. With extensive consultations, the APs who will be affected with different losses all agree with the cash compensation in accordance with the national regulations. (3) During resettlement planning period from December 2007 and April 2008, PMO, IA, DI, and other relevant organizations visited each RC and resident group, held meetings with participation of the community leaders and representatives of residents to solicit their comments on land acquisition and resettlement, compensation policies and standards, resettlement plan, and restoration measures. (4) In order to strengthen the project awareness and outreach, PMO, IA and DI have conducted questionnaire surveys of the APs in January 2008. The survey covered all the RCs and households to be affected; there was extensive representation; and the result is reliable and reflects the preferences of the APs. (5) Consultation workshops on environment and resettlement between January and April, 2008.

During the RP preparation stage, all of the APs have been surveyed and 1,350 representatives of the APs have been consulted and over 15 meetings were organized. These consultation

meetings and investigations have generated lots of interests in the resettlement issues and compensation policies, compensation entitlements, and rehabilitation plan. The APs care less about the re-development of Pingminchong and move back to the original communities they are living. In stead, they express their great concerns about moving to other safe place as soon as possible due to the psychological fear worrying about the possibilities of geohazards. Women are particularly concerns for the geohazard disaster. They are primarily responsible for cleaning up the interior and exterior of the houses after floods and geohazard. They will benefit from the relocation significantly. They think if they can settle down in new site, they can benefit from the convenient transportation facility, the short distance to synthetic gemstone jewelry park and the intensive business environment, thus they can find more job opportunities. The location of new resettlement sites was discussed. In general, the APs wished cash compensation to be used for the purchase their new houses in new resettlement site at Zaochong or other communities and for their livelihood rehabilitation, such as development of self-employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment and catering services) and employment in other institutions, enterprises and businesses through training.

The APs are satisfied with the compensation rate, and resettlement and rehabilitation measures. However, they also expressed their concerns on fair compensation and timely disbursement of compensation payment. Most of the APs are satisfied with designed layout of resettlement site and housing plan, public infrastructures and facilities. The majority of the households will choose replacement houses in the resettlement site. A small proportion of households hope to have bigger new houses than before, they plan to use their savings to purchase extra structures over the original areas of their houses. For those living in small houses (<12 m2 per capita), they will be offered new houses with area of no less than 45 m2 per capita. The area more than 12 m2 per capita will be charged at the price of economy houses. The vulnerable people expressed their concerns for the future livelihood and request the IA to allocate special fund for training to them for additional job and income opportunities.

For those who opted to purchase new houses, their annual family income is around CNY35,000. If the price of commercial houses is CNY1,800/m2, they will use compensation for down payment and mortgage loan for other cost. They need to return bank CNY600 to CNY1,000 per month. It is affordable for them and therefore they satisfied with compensation rate.

For relocation of institutions, enterprises, and other non-residential houses, many issues were discussed with relevant parties, including resettlement options, compensation options, new site, relocating plan. The Chapter 8 provides the details.

4.4 Women’s Participation

Women in the Project area enjoy equal rights with men and they are playing an important role in project planning, design and implementation. During the field survey, about 50% of women have participated in the survey on land acquisition, house demolishment and inventory indexes. Meanwhile, the local government organized the resettlement consultation meeting (at least 30% participants are women) and some representatives of Wuzhou City Women’s Federation were asked to participate in consultation meetings to fully solicit opinion of local women. To sum up, local women are quite concerned about the following issues: 1) move out of Pingminchong as early as possible; and ii) fair compensation standards and timely compensation payment.

4.5 Information Disclosure

4.5.1 Resettlement Information Brochure

In order to help the APs gain a good understanding of the land acquisition and resettlement policies and their entitled rights, IA (Dongtai) in association with DI has prepared a resettlement information brochure (RIB) which is presented in Appendix 1 and will be distributed a copy of RIB to each AP before 10 August, 2008. The main components of the brochure include: (1) general description (including purpose and location) of the project and the socioeconomic benefits; (2) project impacts; (3) laws, regulations and policies of land acquisition and resettlement; (4) basic rights and entitlements of the APs; (5) compensation rates; (6) resettlement and income restoration plan and grievance procedure; and (7) implementation schedule. The affected persons were satisfied with the compensation rates and the rehabilitation measures proposed. They will sign their agreement on the entitlements. The disclosure procedure can increase the transparency during the resettlement implementation. At the same time, it will advise the APs how they can raise their requests and appeal through various channels (including the RCs or ROs, district government, WPMO, WLRB or WHDAO, provincial LRB or HDAO) and various methods (i.e. by visiting, writing letter or telephone).

4.5.2 Distribution of the Resettlement Plan

The draft resettlement plan was distributed to all affected RCs in March 2008. The RP approved by WMG will be redistributed to residents committees before 10 August 2008 to any one wishing to consult the document at the RCs. Copies of the RP will be kept in the Project office and affected RCs. At the same time the RP will be posted on the ADB’s website on 15 August 2008. The RP will be updated based on the detailed measurement survey (DMS) and will be disclosed to the APs and submitted to ADB for review and approval. After ADB approval, the updated RP will also be posted on ADB’s website for disclosure.

4.6 Public Participation Plan during RP Implementation

In order to address the problems and needs of the APs properly and timely regarding land acquisition and resettlement, further consultations with the APs will continue so that all issues may be addressed prior to the start of construction and the implementation of the RP. Meetings will be arranged by the implementation agencies for land acquisition and resettlement, as appropriate. Each affected household will have the opportunity to negotiate the compensation contract, which they will sign with the RO. Table 4-1 provides the public consultation plan and process.

Table 4-1 Public Consultation Plan and Process Target Purpose of Event Form of Event Timing Implementing Agencies Remarks Participants 1. Provide briefings to Community Dec 2007 – PMO, IA, DI, district All APs affected Meetings held with APs in APs on Project & RP. meetings and Jan 2008 government, and RCs by LAR of the each resident community Solicit comments focus group Project and village from APs. discussion 2. Disclosure of RIB Public & August, 2008 PMO, IA, DI, district All APs affected Distribution of RIB to all community government, WLRB, by LAR of the APs to discuss concerns meetings and WHDAO, and RCs Project and suggestions on LAR focus group programmes discussions Undertook discussions

Target Purpose of Event Form of Event Timing Implementing Agencies Remarks Participants with various focus groups to solicit comments & suggestions 3. Conduct Final Site investigations January, PMO, IA, DI, ROs, district All APs affected Inventory survey of all Detailed and household 2009 governments, WLRB, by LAR of the assets and land holdings Measurement Survey interviews WHDAO, and RCs Project (DMS) Collection of socioeconomic data 4. Establishment of Stakeholder October, WMG, PMO, IA, DI, ROs, Relevant WMG will publicize the Cut-Off Date, and meetings 2008 district government, WLRB, stakeholders to cut-off date on Compensation Rate WHDAO, and RCs be involved newspaper of “Wuzhou Deadline Dairy” and community bulletin board once the date is decided. 5. Present Draft Final Public & August, 2008 PMO, IA, DI, district All APs affected Distribution of the draft RP to APs community governments, and RCs by LAR of the RPs to APs to discuss meetings and Project concerns & gaps relating focus group to LAR programmes discussion Undertake discussions with various focus groups to solicit comments & suggestions 6. Advise APs of Public meetings March, 2009 PMO, IA, ROs, district All APs affected Household meetings to Entitlements and governments, and RCs by LAR of the outline entitlements Dates of Project Disbursement 7. Disclose Detailed Public & February, PMO, IA, and ROs Stakeholders, Meetings to be held with Design and Updated community 2009 beneficiaries, and beneficiary population and RP to APs Prior to meetings and APs with APs Submission to ADB focus group for Approval discussion 8. Decision of Stakeholder and March 2011 WMG, PMO, IA, ROs, Relevant Meetings of relevant Payment Scheme community district government, RCs, stakeholders to stakeholders and the APs meetings WLRB and WHDAO be involved 9. House Demolition Mass media and April – June, PMO, IA, ROs, district All APs affected Newspaper of “Wuzhou Notification community bulletin 2011 government, RCs, and by LAR of the Dairy” and community board WHDAO Project bulletin board 10. Relocation Timing Public & June 2011 – PMO, IA, ROs, district All APs affected Meetings to be held with community June 2012 government and RCs by LAR of the beneficiary population and meetings Project with APs 11. Size of Housing Community and April 2011 – PMO, IA, ROs, district All APs affected Commuity and household Chosen household March 2012 government, RCs, and by LAR of the meetings to be held with meetings WHDAO Project beneficiary population and with APs 12. Allocation of Community and April 2011 – PMO, IA, ROs, district All APs affected Commuity and household Housing Unit household March 2012 government, RCs, and by LAR of the meetings to be held with meetings WHDAO Project beneficiary population and with APs 13. Final Move to the Community and June 2011 to RCs or ROs, district All APs affected Commuity and household New Resettlement household June 2012 government; PMO, WLRB by relocation of meetings to be held with Site meetings or WHDAO, Provincial LRB the Project beneficiary population and or HDAO with APs

Target Purpose of Event Form of Event Timing Implementing Agencies Remarks Participants 14. Demolition of Relevant April – PMO, IA, RCs, ROs and PMO, IA, RCs, Relevant stakeholder and Existing Houses after stakeholder and September WHDAO ROs, WHDAO community and household the Move to New Site community and 2012 and APs meetings household meetings 15. Grievance Five channels of January 2009 RCs or ROs, district APs who have Resolve the issues of the Redress after Each grievance – December government; PMO, WLRB any complaint APs through a Stage and procedures 2014 or WHDAO, Provincial LRB related to transparent grievance Agreements or HDAO resettlement channel: (i) VCs or ROs, issues and (ii) district government; compensation iii) WPMO, WLRB or WHDAO, iv) Provincial LRB or HDAO, and (v) by taking legal action to the people’s court. 16. Monitoring Household June 2009 – PMO, IA, ROs, district Random samples Provide recommendations of APs, beneficiaries interviews June 2013 government, WLRB, and update RP monitoring WHDAO, and RC, and plan independent monitoring agency Note: RCs = Resident Committes; RO = Resettlement Office; WHDAO = Wuzhou House Demolishment Administration Office; WLRB = Wuzhou Land Resource Bureau;

For smooth and successful implementation of the resettlement plan, the APs will be encouraged to actively participate in various land acquisition and resettlement activities. The project construction will cause some impacts more or less on local people. In order to ensure the APs could benefit from the project, local people are encouraged to actively participate in the project construction, and necessary consideration and assistance should be provided to local APs in the use of labours.

V. APPEALS AND GRIEVANCE PROCEDURES

APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The first step of grievance procedure established for the Project is through resident committee, which is localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. APs will be informed of the above grievance and appeal procedure through public information meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely. The basic grievance procedures include the following steps.

Stage 1: If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the resident committee or in oral or in written form. If an oral appeal is made, the resident committee will record it on paper and process it. Resident committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2: If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision; the district government office will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 3: If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Wuzhou Project Management Office (WPMO) or Wuzhou Land Resource Bureau (WLRB) or Wuzhou House Demolishment Administration Office (WHDAO) after receiving the decision. The Wuzhou City PMO or WLRB or WHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4: If the aggrieved AP is still unsatisfied with the decision of the WPMO or WLRB or WHDAO, he/she will appeal to the Provincial LRB or HDAO after receiving the decision. The Provincial LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 5: If the AP is still dissatisfied with the decision of the Provincial LRB or HDAO, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision of from Provincial LRB or HDAO. The AP will be informed of the result via written notice. . The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

An independent agency (IMA) will be hired by the WPMO for the overall resettlement monitoring and evaluation of the Project in Wuzhou City. The IMA will inspect and report on the resettlement processes and the operation of the WPMO and relevant organizations involved in the LAR implementation at different levels and correct any errors made during the resettlement

process.

VI. LEGAL FRAMEWORK AND POLICIES

6.1 Applicable LAR Laws, Regulations and Policies

The PRC has established and implemented laws, regulations, and policies on resettlement and compensation for many infrastructure projects. This Project will follow the related Chinese laws, national and provincial regulations and local bylaws and policies, and also include comments and suggestions from APs, and meanwhile meet the requirements of ADB’s Policy on Involuntary Resettlement. The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project.

The land acquisition, demolition and resettlement of this project will be complying with the laws and regulations of PRC, local government and ADB:

¾ Land Administration Law of the PRC, amended in 2004; ¾ Management Law of Urban Real Estate of PRC, 1994; ¾ Urban Housing Demolition Management Regulations of the PRC issued in 2001; ¾ Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003; ¾ Guidelines for Valuation on Urban House Demolishment of PRC; 2004; ¾ Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region; ¾ ADB’s Involuntary Resettlement Policy, 1995; ¾ Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; ¾ Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and, ¾ OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006.

6.2 ADB’s Involuntary Resettlement Policies

ADB Involuntary Resettlement Policy (1995) and Resettlement Operations Manual (OM Section F2) have already specified the 3 important elements of the involuntary resettlement: (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. Some or all of these elements may be present in a project involving involuntary resettlement. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into account the following basic principles:

i) Involuntary resettlement should be avoided whenever feasible; ii) Where population displacement is unavoidable, it should be minimized by exploring viable livelihood options; iii) Replacing what is lost. If individuals or a community must lose all or part of their land, means of livelihood, or social support systems, so that a project might proceed, they will be compensated and assisted through replacement of land, housing, infrastructure, resources, income sources, and services, in cash or kind, so that their economic and social circumstances will be at least restored to the pre-project level. All compensation is based on the principle of replacement cost;

iv) Each involuntary resettlement is conceived and executed as part of a development project or program. ADB and executing agencies or project sponsors, during project preparation, assess opportunities for rehabilitation measures, the affected people need to be provided with sufficient resources and opportunities to re-establish their livelihoods and homes as soon as possible, with time-bound action in coordination with the civil works. v) The affected people are to be fully informed and closely consulted. Affected people are to be consulted on compensation and/or resettlement options, including relocation sites, and socioeconomic rehabilitation. Pertinent resettlement information is to be disclosed to the affected people at key points, and specific opportunities provided for them to participate in choosing planning and implementation options. Grievance redress mechanisms for affected people are to be established. Where adversely affected people are particularly vulnerable groups, resettlement planning decisions will be preceded by a social preparation phase to enhance their participation in negotiation, planning, and implementation; vi) Social and cultural Institutions. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and socially harmony is promoted; vii) No formal title. Indigenous groups, ethnic minorities, pastoralists, migrants/floating population, people who claim for such land without formal legal rights, and others, who may have usufruct or customary rights to affected land or other resources, often have no formal legal title to their lands. The absence of a formal legal title to land is not a bar to ADB policy entitlements; viii) Confirmation of eligibility. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligible cut-off date, preferably at the project identification stage, to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits; ix) The poorest. Particular attention must be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly indigenous peoples. Appropriate assistance must be provided to help them improve their socioeconomic status; x) The full resettlement costs are to be included in the presentation of project costs and benefits. This includes costs of compensation, relocation and rehabilitation, social preparation and livelihood programs as well as the incremental benefits over the without-project situations (which are included in the presentation of project costs and benefits). The budget also includes costs for planning, management, supervision, monitoring and evaluation, land taxes, land fees, and physical and price contingencies. xi) Eligible costs of compensation. Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and to ensure compliance with involuntary resettlement procedures during implementation.

6.3 Related Laws and Regulation of PRC

This project can be implemented based on the PRC Land Administration Law (effective as of January 1, 1999 and amended in 2004), Urban Housing Demolition Management Regulations of the PRC issued in 2001, and Management Law of Urban Real Estate of PRC (effective as of

July 5, 1994) as well as the other relevant laws and regulations.

6.3.1 PRC Land Administration Law

Article 2: The State may requisition land owned by collectives according to law on public interests.

The State introduces the system of compensated use of land owned by the State except the land has been allocated for use by the State according to law.

Article 43: Any unit or individual that need land for construction purposes should apply for the use of land owned by the State according to law.

Article 47: Land acquired shall be compensated for on the basis of its original purpose of use.

6.3.2 Urban House Demolition Management Regulation of PRC

Article 6: The demolition unit can not demolish house/building until obtaining the demolition certificate.

Article 22: The demolition unit should give the tenants compensation according to these regulations. There is no compensation for demolishing illegal building and temporary buildings that exceed the approved period4.

Article 23: Resettlement compensation can be paid out in cash, or by exchange of property rights. The resettlers can choose between the two compensation options – cash compensation or house exchange.

Article 24: The amount of compensation shall be determined on the basis of the assessment of the real estate market, in reference to the location, purpose of use, construction area and other factors.

Article 31: The acquiring unit shall pay a resettlement allowance to the owner of the building or its tenants. During the transition period, if the owner or tenants arrange living places by themselves, the acquiring unit should pay them an allowance for their temporary transition. If the owner and tenants use temporary accommodation provided by the acquiring unit, no temporary transition allowance is necessary.

The standard of the resettlement allowance and temporary settlement allowance will be regulated by the people’s government.

If the demolition extends the transition period for which the acquiring unit is accountable, the acquiring unit shall increase the allowance to the owner or tenants by the months delayed. For those who use the transition building, the acquiring unit shall give a temporary settlement allowance by the months delayed.

Article 33: The acquiring unit shall compensate for production stoppage and business disturbance to any non-residential building.

4 It means beyond the expiry date certification.

6.3.3 Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC

Article 9: When the house demolition administration department issues a house demolition permit, it shall be within 5 days, publicize all contents specified in the house demolition permit, including the name of the Project, structure dismantler, scope of demolition, and time limit of demolishment, implementation unit of demolishment, etc. The announcement should be made in the form of house demolishment notification.

The house demolition administration department and the dismantlers shall properly publicize and explain the relevant matters to the resettlers.

Article 18: The demolition unit and the affected people shall reach agreement on compensation and resettlement for demolition.

For demolition of rental houses, the demolition unit shall reach agreement with the affected people and the tenants on demolition compensation and resettlement.

Article 19: Dismantlees or house tenants should be compensated by dismantlers based on household house property certificate, rental vuchers of public houses and house rental contracts which are effective after issuance date of house demolition permits.

The dismantlees and house tenants signing compensation agreements refer to the property owners with house property certificate and tenants with rental vouchers of public houses or house rental agreement.

Article 20: The agreement of demolition and resettlement compensation shall contain the following contents:

(i) Construction area of the houses to be demolished; (ii) Amount of cash compensation for demolition; (iii) Methods of compensation and resettlement; (iv) Time limit of relation, approach of temporary transition and time limit of temporary transition; and, (v) Other issues mutually agreed by concerned parties.

Article 32: Dismantlers should pay all compensation exclusively for house demolition and relocation purpose and can not be used for other purposes.

House demolition administration department should establish financial regulatory system to enhance financial supervision on the relocation compensation.

Article 34: Dismantlers should compensate the dismantlees in accordance with of the regulation.

Demolition of illegal structures and temporary buildings exceeding approval period should not be compensated. Demolition of temporary buildings within approval period should be compensated. The monetary compensation formula is: monetary compensation = replacement price of temporary structure x remaining period ÷ approved period.

Replacement price refers to replacement price on the date of issuance of housing demolition

permit.

Article 37: Formula for monetary compensation for house demolition is: monetary compensation = unit price of real estate market assessment for demolished house x construction area of house to be dismantled.

The unit price in the preceding section refers to the price of construction area per square meter.

If real estate market assessment price is lower than the lowest compensation rates, the lowest compensation rate should be applied. Lowest compensation rate refers to the average market unit price of purchased public houses in similar structures and locations. The specific criteria should be determined by city and county governments.

Article 38: For decorated houses, except for movable parts and materials, the decoration should be partially compensated. Formula for monetary compensation of house decoration is: monetary compensation of house decoration = replacement price of housing decoration x (standard life duration - actual time used of decoration) ÷ standard life duration.

The replacement price of house decoration in the preceding section refers to replacement price of the same grade house decoration on the date of issuance of housing demolition permit. The standard life duration refer to:

(1) 10 years for residential houses; (2) 7 years for office building; and, (c) 5 years for shops, hotels, restaurants and other business premises.

The lowest monetary compensation for house decoration can not be lower than 20% of replacement price of house decoration.

Article 50: Demolition has been implemented without obtaining a house demolition permit, the house demolition administration department, in accordance with the "Article 34” of the regulation, should order a stop of demolition by warning with a penalty of CNY20 to CNY50 per square meter of demolished houses.

6.4 Gaps between ADB and Chinese Policies

In comparing the gaps between ADB and PRC policies, Table 6-1 presents that the distinctive differences in the aspects of legal rights or property certificates, and information disclosure and consultation which are lacking in content or in time delays.

Table 6-1 Gaps between ADB and PRC Policies Differences Comparison Solutions Relocation There are rules and regulations in PRC related to the It is important that the performance of concerned compensation relocation compensation. But compared to the equivalent management organizations should comply with the policies of ADB, the execution of these regulations are ADB’s policy. Meanwhile, attention should be paid to usually not so transparent. Measures should adopt to make APs’ participation and activities to increase awareness sure that the compensation fee will be distribute timely and of public participations during RP implementation. The sufficiently. IA and ROs should ensure that all of the people understand the policies and procedures regarding land acquisition, resettlement, compensation, payment, and provision of grievance redress and appeal procedures. Besides, the EAs should enhance the internal and external supervision.

Compensation for The existing Chinese Laws do not require compensation for For this project, all affected persons with or without Properties with the acquisition of houses, businesses and land without certificates, irrespective of titles of house ownership and without certificates. According to the ADB regulations, the and land and tenure rights, will be protected. However, Certificates demolished structures, no matter they have certificates or any further illegal construction and temporary without certificates, should all be accounted for. structures built after the authorized deadline for land usage will not be compensated.

Special Provisions Chinese regulations require giving all APs the same For the Project, the issues of vulnerable groups and for Vulnerable treatment without special consideration to vulnerable gender equity will be incorporate in the land acquisition Groups groups. But ADB requires that particular attention must be and resettlement planning and implementation through paid to the needs of the poorest affected people, and the provision of a preferential policy to vulnerable vulnerable groups that may be at high risk of groups in such things as compensation, MLG, impoverishment. Appropriate assistance must be provided to employment and assistance in relocation help them improve their socioeconomic status.

Consultation and According to the requirement of ADB for the RP preparation, To meet the requirements of public consultation and Public Notification the APs should be fully informed and closely consulted. In transparency, ADB’s procedures have been and will be the Land Administration Law of PRC, it provides the followed for the Project. The public consultation and consultation service, but provides no concrete and specific notification should be a part of the management clauses and procedures. During actual practice, usually meetings of the Project. To avoid the circumstance that there is no consultation and no information disclosure until administration departments is unwilling to inform the the approval of RP due to the facts that formal land people, during the preparation of the resettlement plan, acquisition and location are not finalized during the RP the cut-off date should clearly specified in the RP, and preparation stage and the land user is unwilling to inform the measurements and surveys should be carried out in APs. details as much as possible, and a good communication channel should be established with the APs.

Grievance Land Administration Law of PRC provides a grievance Although it is difficult tasks, effective safe measures Procedures procedure, but few people have used the formal procedure should be put into place to strengthen the principles of and the grievance documents are usually incomplete. ADB the resettlement and compensation. Training of the policy requires safe measures to protect the rights of the resettlement staff should be undertaken to ensure that APs and actual methods to solve the disputes of the APs. they will pay more attention to the needs and concerns Therefore, this requires a complete “step-by-step” of the APs. The APs should be well informed regarding management, supervision and subsequent actions to be the grievance procedures and processes, including taken to resolve the issues and disputes of the APs. Further, some good cases of grievance and resolution. Chinese laws tend to the method of “resettlement first, and dispute resolution second”, in contrary, ADB required to take as much time as possible to settle down issues before land acquisition and resettlement. Temporary The most common way in China is to provide temporary To meet the requirements of ADB, the following resettlement house. ADB’s policy is to reduce the resettlement as much measures should be adopted: No temporary as possible and ensure the residents live in the illegal resettlement will be allowed for the resettlement of the houses move to the legal ones. Project. The illegal houses will be compensated as the legal houses and legitimatized after relocation.

6.5 Compensation Principles and Standards

After FSR is approved in August, WMG will determine the cut-off date in collaboration with relevant organizations involved, including PMO, IA, WLRB, WHDAO, and district government. According to the WMG official document (Wuzhengbanfa[2004]No.43) Article 5 of Chapter 1, land acquisition and houses demolishment designated within Geohazard prevention and control scope should be compensated by law. All illegal structures currently in the project area will be compensated. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. WMG will publicize the cut-off date on newspaper of “Wuzhou Dairy” and community bulletin board once the date is decided.

6.5.1 Eligibility

The Project affected persons (APs) who are entitled to receive compensation refer to the persons affected by the involuntary taking of land resulting in (i) relocation or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location. All landowners and users and occupants of houses including the illegal occupants in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities as well as the cut-off date determined by Wuzhou Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or houses built after the cut-off date determined by the local government will not be compensated as mentioned in last paragraph.

6.5.2 Compensation Principles

The principle of the compensation and entitlements established for the Project are as follows: (i) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre project standard of living, with the prospect of improvement; (ii) All the APs, with and without certificates, are to be taken into consideration and accounted for; (iii) Compensation should not be paid to those people who occupy land or construct structures and auxiliaries in the project area after cut-off date determined by the local government; (iv) Adequate compensation should be provided to the APs timely; (v) Where land allocation per-capita is not sufficient to maintain the previous livelihood standards, other income generating activities will be provided for; (vi) A preferential policy will be provided to vulnerable groups in such things as compensation, housing assignment, transfer and employment; (vii) All the APs will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans and project timing; and (vi) Close monitoring and timely actions will be carried out to identify and resolve any problems.

6.5.3 Compensation Standards

a. 6.5.3.1 Permanent Land Acquisition

Based on the compensation standards of land acquisition and resettlement policies of Guangxi Zhuang Autonomous Region, and land valuation conducted by qualified valuation agencies of real estate and land. The permanent acquisition of construction land in Pingminchong does not need to pay as it is government owned land, which will be re-developed for sale through open bid auction. The compensation standard for the construction land in Zaochong is CNY

320,000/mu, and the land compensation for the loss of land will be paid to the Wuzhou Land Resource Bureau directly. Then, LRB will go through the process of preparation of tendering document, determination of bidding company qualifications, issuing tendering notification through mass media, auction and publicizing to sale the land by public bid auction.

b. 6.5.3.2 Residential House Demolishment

For lost house structures and auxiliaries, the compensation rates are presented in Table 6-2 and Table 6-3. All the compensation rates for structures and auxiliaries will be based on replacement value. The compensation for residential houses will be paid to the APs. Relocation and transfer subsidy will be also provided to the APs at the rate of CNY 5/m2, which is regulated in the “Land Acquisition, Resettlement and Compensation Scheme of Wuzhou City Geohazard Prevention and Control Projects” issued by WMG. The compensation of relocation and transfer subsidy at CNY 5/m2 is adequate for the moving of the APs. The average salary of the APs is CNY 750 per month. It is expected that only maximum of 2 production day loss with associated salary loss at CNY50 during the moving for those who are working. The compensation of relocation and transfer allowance is adequate to the APs. For example, the smallest structure area of houses is about 30 m2, the APs can complete moving in 1 day, the salary loss is about CNY25, plus transportation rental cost at about CNY80/day. Thus, the moving and transportation cost them only CNY 105. In comparison with the compensation the APs can get at CNY 125 for relocation and transportation allowance, the compensation is adequate to the APs.

Table 6-2 Compensation Rates of Residential House Demolition No. Type of Structures Unit Compensation Rate (CNY) 1 Frame m2 1,200 2 Brick-Concrete m2 1,000 3 Brick-Wood m2 750 4 Relocation Allowance for Private Households m2 5

Table 6-3 Compensation Rates of Auxiliaries Item Unit Compensation Rate (CNY) Telephone No. 150 Kitchen No. 5,000 Balcony No. 1,000 Water Meter Set No compensation will be paid1 Electric Meter Set No compensation will be paid1 Coal Gas Set 300 Toilet No. 3,500 Cable TV No. 160 Note: 1 New water meters and electric meters will be installed in the new resettlement houses.

c. 6.5.3.3 Non-Residential House Demolishment

Owners of the affected institutions, enterprises, and shops will be provided with commercial business houses located in satisfactory area with the same area as that of demolished structures; the demolished non-residential structures will be compensated at replacement value of CNY 1,200/m2 for frame structure, CNY 1,000/m2 for brick-concrete structure, CNY 750/m2 for brick-wood structure, and CNY 550/m2 for simple structure. In addition, CNY5/m2 will be paid as relocation allowance for those who are living in the affected area as regulated in the “Land Acquisition, Resettlement and Compensation Scheme of Wuzhou City Geohazard Prevention and Control Project”. The compensation of non-residential structures will be paid to the affected

owners.

The salary of employees for the lost working time during the period between the closure of their present production or businesses activities and re-opening of their production or business at new location will be compensated in cash. Based on the duration of the production or business stoppage time and production or business value, allowance of CNY 1,500 at average will be provided to each affected institution, enterprise, and shop for the loss of production and business stoppage, respectively. Allowance of CNY 525 in total will be provided to each affected employee for the loss of working days (Based on a total of 15 days to be lost for each employee with daily salary at CNY35/capita), which is regulated in the “Land Acquisition, Resettlement and Compensation Scheme of Wuzhou City Geohazard Prevention and Control Project” issued by WMG. For the affected employees, their average salary is about CNY900 to CNY 10,000. The compensation at CNY 525 is more than the temporary 15 salary loss at CNY 450 to CNY 500 of the APs. In addition, during the moving period, only a couple of working day loss or business/production stoppage is expected, however to provide the APs more time flexibility to settle down, allowance for 15 days will be provided by the Project. As a result, the compensation is adequate to the APs.

Relocation allowance of CNY 525 in total will be provided to each affected teacher for the loss of working days (Based on a total of 15 days to be lost for each person with daily cost at CNY35/capita). Since the affected schools will be relocated during time of summer vacation, the students will not lose any school time, no cash compensation will be paid to them.

d. 6.5.3.4 Productive Assets

For any other productive assets that will be affected by the Project, such as fruit trees, regular trees and crops, the APs will receive compensation for the losses. The compensation will be at replacement rates, which reflect their current values.

e. 6.5.3.5 Ground Attachments

All affected ground attachments, including basic infrastructures and special facilities will be compensated at replacement rate to reflect the current value. Table 6-4 provides the compensation standards of ground attachments.

Table 6-4 Compensation Standards of Ground Attachments Item Unit Compensation Standards (CNY) Public toilet m2 800 10KV electric pole No. 2,500 380V electric pole No. 2,000 Transformer (kAV) No. 150,000 Water culvert (concrete) m2 150 Water culvert (slurry) m2 120 Water culvert (mud) m2 80 Gravel road m 100 DN200 m 600 DN100 m 300 DN80 m 240 Water supply pipe DN70 m 210 DN65 m 200 DN50 m 150 DN25, DN20, DN15 meter Set 800 GYTS-12B1 communication cable m 146 GYTS-8B1 communication cable m 38.47 Overhead 24 core and 12 core cable TV optical fiber cable line km 30,000 Overhead artery optical fiber cable (main line) km 20,000 Cable TV distribution networks HH 100 35 m2 power cable m 3,000 Scattered fruit tree No. 100 Regular small tree (10-30 cm) No. 50 Matured regular Tree (Over 30 cm) No. 100 Old structure demolishment m2 60

f. 6.5.3.6 Provisions for Vulnerable Groups

Incorporation of the needs and interests of vulnerable groups, special attention will be given to them, particularly the potential difficulties faced by low-income earners in the affected areas in resettlement planning and implementation. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, housing assignment, social security plan, special fund and MLG. Assistances on training with free charge, employment, and micro-credit will be provided to them by the MWG, PMO and IA to restore their living conditions and incomes. During resettlement phase, the women-headed households and disabled and elderly people will be given priority to choose building location and floor.

VII. ENTITLEMENT MATRIX

From the results of inventory surveys, the major impacts of LAR have been identified based on the nature of losses, and an Entitlement Matrix has been prepared as a guide of compensation payments. Compensation for land acquisition, and residential house (private houses and houses and buildings of public institutions and enterprises) and non-residential house (institution, enterprise and shop) demolishment will be paid to all users with or without legal certificates, including APs settled on the land and they are included in the final AP list or are able to prove their occupation of affected plots before the cut-off date determined by WMG. The payment will be made in the forms of “cash” and “replacement house at property right exchange” according to the class and type of dwellings. The relocated households will also receive a relocation allowance. Compensation for standing crops, auxiliaries and other assets, basic infrastructures and facilities will also be paid directly to the affected owners. Any income loss from production/sales and wages will be paid in cash to the APs. The loss of institutions, enterprises and shops will also be compensated in cash. Table 7-1 presents the entitlement matrix.

Table 7-1 Entitlement Matrix Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible Permanent Pingminchong Permanent loss of state land. In Land Reserve Center of WMG The permanent acquisition of state-owned construction land does z PMO, IA, and land total, 289 mu of state-owned not need to pay, which will be re-developed for sale through open ROs acquisition land, including 44.3 mu wood bid auction by Land Reserve Center of MWG. The compensation land, 200.39 mu house plot, standard for the construction land in Zaochong is CNY 400,000/mu, 2.68 mu motor road, and 41.6 and the land compensation for the loss of land will be paid to the mu other lands. Wuzhou Land Administration Bureau directly.

Zaochong 100 mu of state-owned WLRB Compensation will be paid to WLRB in cash at the compensation z WMG, Dongtai, construction land rate of CNY320,000/mu and ROs

Residential structures (1,816 With structures built thereon. Households All affected APs will be provided with compensation fee z Cash compensation for affected residential structures at full z PMO, Dongtai, urban households or 5,707 136,696 m2 residential (71 household or replacement house in planned Zaochong replacement cost of materials and labor with no deduction for ROs, WLRB, persons living in private structures in total, including without house resettlement site and other geohazard free communities depreciation or salvageable materials. The compensation WHDAO, Wanxiu houses under jurisdiction of 28,320 m2 frame, 95,286 m2 certificates) of the city at APs’ preference. standards are: CNY1,200/m2 for frame structure, CNY1,000/ m2 District RCs of Pingdong and Pingxi brick-concrete, and 13,090 m2 brick-concrete, and CNY750/ m2 for brick-wood Government, and brick-wood Cash compensation or replacement house at exchange RCs of property rights will be provided to the APs z Replacement houses of equivalent size at property exchange will 4,800 m2 residential structures be provided in Zaochong resettlement site. without house certificates All users with or without legal house certificate papers including AP settled on the land after after 29/08/98 z House without property right certificates will be legitimized after (Land Law) as long as they are included in the final AP relocation into replacement houses in Zaochong Resettlement list or are able to prove their occupation of affected plots Area. before the cut-off date determined by WMG. z The salvageable materials will be provided to the APs to sale tto Relocation allowance in cash will be provided to the recycling stations for earning some money APs z Relocation allowance will be paid to the APs in cash at CNY5/m2. as regulated by WMG.

20,351 m2 residential structures Tenants (216 All tenants have the right to extend the lease or obtain z The affected tenants will get resettlement allowance in cash at z PMO, Dongtai, are rented to tenants HHs) equivalent compensation. The terms of the extension CNY5/m2 as regulated by WMG. ROs, WLRB, contract are the same as the previous one. WHDAO, Wanxiu District Government, and RCs

Auxiliaries 6,886 kitchens, 1,232 toilets, The APs will be provided cash compensation at replacement value. z Cash compensation will be paid to APs: CNY5,000/each for z PMO, Dongtai, 1,310 balconies, 1,507 sets of kitchen, CNY1,000/each for balcony, CNY300/each for coal gas, ROs, Wanxiu water meters, 1,500 sets of CNY150/each for telephone, CNY800/each for toilet, CNY160/hh District electric meters, 1,216 sets of for cable TV network Government, and coal gas, 1,250 telephones, z Water meters and electric meters will be installed in the RCs

Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible 1,352 households cable TV resettlement site for the household equivalent to the same networks quantity before resettlement. Non-residential structures of With structures built thereon. Affected Cash compensation will be provided to the affected z Cash compensation for affected non-residential structures at full z PMO, Dongtai, 11 institutions and 19,410 m2, including 9,043 m2 owners owners replacement cost of materials and labor with no deduction for ROs, WHDAO, enterprises (including 5 frame structures, 8,195 m2 depreciation or salvageable materials. The compensation Wanxiu District state-owned institutions, 2 brick-concrete structures and All users with or without legal house certificate papers standards are: CNY1,200/m2 for frame structure, CNY1,000/ m2 Government, and state-owned enterprises, 3 1,538 m2 brick-wood structures, including AP settled on the land as long as they are brick-concrete, CNY750/ m2 for brick-wood, and CNY550/m2 for RCs collective enterprises and 1 and 634 m2 simple structure included in the final AP list or are able to prove their simple structure private enterprise) and 7 occupation of affected plots before the cut-off date. The private shops. A total of 160 cut-off date will be determined by WMG z Relocation allowance of CNY 1,500 at average will be provided employee households or 458 to each affected institution, enterprise, and shop for the loss of people living under production and business stoppage as regulated by WMG administration of 3 public institutions and 1 enterprise, Relocation allowance will be paid to the APs in cash at CNY5/m2.for 358 persons living in the those who are living in Pingminchong area as regulated by WMG dormitories of 1 school and 2 enterprises. Additional 152 152 employees working in 4 Affected e Salary loss will be paid to the affected employees for z Relocation allowance of CNY 525 in total will be provided to z PMO, Dongtai, employees in 4 enterprises enterprises but not living in employees loss of 15 working days during production/business each affected employee for the loss of working days (Based on a ROs, WHDAO, and 35 teachers and 117 Pingminchong area will be stoppage total of 15 days to be lost for each employee with daily salary at Wanxiu District students in the affected affected. All employees will be CNY35/capita Government, and Pingminchong Primary compensated in cash for the RCs School, and 15 employees in loss of salary. affected shops will be 148 teachers and students in Affected Loss of working days and school days will be paid to the z Relocation allowance of CNY 525 in total will be provided to affected. the affected Pingminlu Primary teachers and affected teachers and students during the stoppage of each affected teacher for the loss of working days and school School but not living there will students school days, respectively (Based on a total of 15 days to be lost for be affected. Cash compensation each person with daily cost at CNY35/capita as regulated by will be paid to them for the loss WMG. The school will be moved during the time of summer of working days and school vacation, therefore students will not lose any learning time. days

15 employees in 7 family-owned Affected Salary loss will be paid to the affected employees for z Relocation allowance of CNY 525 in total will be provided to shops will be affected (The employees loss of 15 working days during business stoppage each affected employees for the loss of working days (Based on number of APs is included in a total of 15 days to be lost for each person with daily cost at residential structure CNY35/capita as regulated by MWG. demolishment) Ground attachments, Ground attachments to be Owners z Cash compensation for ground attachments will be paid to z PMO, Dongtai, including basic affected: 1,050 m2 toilets, 10 affected owners: CNY800/m2 for toilet, CNY2,500/each for 10KV ROs, Wanxiu infrastructures and special 10KV electric poles, 26 380V electric poles, CNY2,000/each for 380V electric poles, District facilities electric poles, 3 transformers, CNY150,000/each for transformers, CNY150/m m2 for concrete Government, and 3,000 m2 concrete water culvert, water culvert, CNY120/ m2 for slurry water culvert, CNY80/m2 for RCs 4,225 m2 slurry water culvert, mud water culvert, CNY100/m for gravel road, CNY600/m for 500 m2 mud water culvert, DN200 water supply pipe, CNY300/m for DN100 water supply

Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible 15,000 m gravel road, 500 m pipe, CNY240/m for DN80 water supply pipe, CNY210/m DN70 DN200 water supplypipe, 1,550 water supply pipe, CNY200/m DN65 water supply pipe, m DN100 water supply pipe, 80 CNY150/m for DN50 water supply pipe, CNY800/set for DN25 m DN80 water supply pipe, 80 water meters, CNY800/set for DN20 water meters, CNY800/set m DN70 water supply pipe, 290 for DN15 water meters, CNY146/m for GYTS-12B1 m DN65 water supply pipe, telecommunication cable, CNY38.47/m for GYTS-8B1 3,030 m DN50 water supply telecommunication, CNY30,000/ km for overhead 24 core and 12 pipe, 400 set DN25 water core cable TV optical fiber cable line, CNY20,000/km for meters, 1,000 sets DN20 water overhead artery optical fiber cable (main line), CNY100/hh for meters, 400 set DN15 water cable TV distribution networks, CNY3,000/m for power cable, meters, 500 m GYTS-12B1 CNY100/each for scattered fruit tree, CNY50/each for regular telecommunication cable, 3,900 small tree (10-30 cm), CNY100/each for matured regular tree m GYTS-8B1 (over 30 cm), CNY60/m2 for old structure. telecommunication, 5.1 km overhead 24 core and 12 core All infrastructures and facilities will be reconstructed by relevant cable TV optical fiber cable line, department after receiving compensation payment 26.5 km overhead artery optical fiber cable (main line), 1,106 cable TV distribution networks, 250 m power cable, 100 young regular tree (10-30 cm), 20 matured regular tree (over 30 cm), 15 scattered fruit tree (1 year), 18 scattered fruit tree (2 years), 11 scattered fruit tree (3 years), 20 scattered fruit tree (above 5 years), 1,49,961 m2 old structure.

VIII. RESETTLEMENT AND REHABILITATION PLAN

8.1 Objectives and Principles of Resettlement Program

The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: i) Compensation should be paid in cash or physical replacement; ii) Development resettlement is promoted. The livelihood rehabilitation plan will be based on the provision of: a) various employment and income generation opportunities during the Project construction and operation phases; b) development of self-employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry- cleaning house, entertainment and catering services); c) provision of technical training to the APs to increase their skills to be employed in other institutions, enterprises and businesses; iii) Implement the resettlement program properly, comply with related compensation policies, and ensure that the production and living conditions of the affected people are increased or at least restored; iv) The resettlement plan should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration; v) The APs should be consulted for the development of the resettlement plan and for the compensation rates; and vi) Women’s rights and interests should be fully taken into consideration of the Project.

8.2 Resettlement Plan and Rehabilitation Plan

8.2.1 Resettlement Options and Resettlement Plan

8.2.1.1 Permanent Land Acquisition

The land to be acquired in Pingminchong Valley is owned by the state. As part of the process of transparent information disclosure, the affected households have been informed that once they move, the land they vacate will be developed and auctioned during the community consultations for RP preparation. The APs have no objection on it. As the land is owned by the state, the affected households will not pay taxes to the land resource bureau for occupying the land. The taxes will be paid by the developers. The affected households will be provided with the option to move into the new houses in the newly developed land development zone of Pingminchong if they prefer to live in the original place, however the majorities of the APs prefer to move to Zaochong Resettlement Area and other places based on the consultation.

8.2.1.2 Households to Be Relocated by Residential Structure Demolishment

Because of the geological hazard in Pingminchong area, all of the houses there will be relocated. For the residential structure demolishment, 1,816 individual households or 5,707 populations living in private houses will be relocated. According to the field survey up to date, although some of the households are still in the process to make their decision on resettlement options, the majority of households would like to get cash compensation or replacement house in Zaochong resettlement site or other geohazard free areas of the city. The resettlement options of affected households and resettlement location options for the affected households are summarized in Table 8-1a and Table 8-1b, respectively. Of the total relocated households, 63%

or 1,144 households would like to choose replacement houses in Zaochong Resettlement Area, 10% or 182 households would like to purchase commercial houses, 8% or 145 households would like to purchase economy houses, and 19% or 345 households have not made their decision yet, but will choose one of the above mentioned options. The majority of the affected households (68% or 1,235 households) would like to move to Hexi Area, and 13% or 236 households to Hedong Area and 19% or 345 households have not made their decision yet.

Table 8-1a Resettlement Options of Affected Households Resettlement Options of APs (No.) Cash Compensation Haven’t Replacement Houses Total Purchase of Purchase of Made in Zaochong HHs Commercial Economy Decision Resettlement Area House House Yet Pingdong RC 1,152 726 125 92 219 Private Houses Pingxi RC 664 418 57 53 126 TOTAL 1,816 1,144 182 145 345 % 100% 63% 10% 8% 19%

Table 8-1b Resettlement Location Options of Affected Households Resettlement Options of APs (No.) Hedong Haven’t Made Total HHs Hexi Area District1 Decision Yet Pingdong RC 1,152 783 150 219 Private Houses Pingxi RC 664 452 86 126 1,235 HHs choose 236 HHs wished to to live in Zaochong buy commercial TOTAL 1,816 or buy commercial houses or economy 345 houses or economy houses in Hedong houses area % 100% 68% 13% 19% Note: 1 Pingminchong is within Hedong area. Zaochong is located within Hexi area.

The reasons of people haven’t decided where to go yet is due to the reason that the family members themselves have different opinions for their destination to go. However, before DMS, they have to make their final decision to choose either move to Zaochong resettlement area or other communities in the city by taking replacement houses or cash compensation. According to the survey, APs are satisfied with compensation rates and have no objections on the resettlement scheme proposed by the Project.

Of the total relocated households, 182 households would like to purchase commercial houses which are available from open market. The size of structure they currently own ranges from 70 m2 to over 100 m2 in frame or brick-concrete structures. Their annual family income is around CNY 35,000. The compensation for houses in frame structure totals at CNY 120,000 with compensation rate of CNY 1,200/m2. If the price of commercial houses is CNY 1,800/m2 and they intend to buy houses with 100 m2. They will use CNY108,000 compensation money as down payment and take 15 years mortgage loan for remaining cost of CNY 72,000. Thus they need to pay CNY 571 per month as mortgage payment to the banks. It is affordable for them. Therefore they are satisfied with compensation rate. The advantage of purchasing commercial housing include: i) the quality of houses will be higher than economy houses; and ii) houses can be sold freely at any time, but the sale of economy houses need to get approval of the local government with qualification of some criteria, for example, the residents have to live in the houses for several years.

For the 145 households who would like to purchase economy houses, the current price of economy is CNY 1,000/m2. The compensation rate for frame structure is CNY1,200/ m2, which means they can afford bigger houses. The compensation rate of houses in brick-concrete is CNY1,000/m2, which means they can afford the same size houses. The compensation rate for houses in brick-wood structure is CNY750/m2, which means they need to pay additional CNY250/ m2 to fill in the gaps. For the 145 households, although they prefer to choose the purchase of economy houses during the survey in January 2008, based on the recent community meetings in June 2008,they have changed their mind now to move to Zaochong Resettlement Area, they will be offered the same size of replacement houses. The changes are mainly due to the fact that they get to know all the advantages of Zaochong Resettlement Area have after series comparison with other options.

Based on discussion and consultation with the APs, the relocation plan is formulated. For those whose houses will be demolished, the compensation fee in cash will be paid or replacement houses will be made available to them. If the household wants to get the cash compensation, the price of the demolished house will be based on the evaluation price conducted by qualified real estate evaluation agency. The evaluation of the compensation rates should also include the factors of house location, house structure, floor area, storey level, decoration, and the real estate market evaluation rate, etc.

With cash compensation, three options will be provided to the APs: (i) Purchasing a new residential house at real estate markets, (ii) Purchasing an “economy house” provided by the government, and (iii) Renting a subsidized house (with cheap rental cost) provided by the government. The relocated households can make their choices according to their economic situation and personal preference. These options will provide more selection for the APs, which will particularly benefit those households who would like to buy a bigger house and greatly improve their living conditions with additional investment from their savings on new houses.

For those who choose replacement houses, Zaochong resettlement area situated in Xihuan Road of Hexi Area, a well-known synthetic gemstone production base in the World, has been designed to serve as a resettlement site to host these people. According to the feasibility plan, Zaochong area is planned as a “centralized resettlement site”. Photo 1 presents one sample of centralized resettlement houses constructed by WMG to host resettlers. Photo 1: Sample of New Resettlement Houses Constructed by WMG to Host Resettlers from Geohazard Community

Zaochong area is 5 kilometers away from Pingminchong area (see Figure 8-1). The resettlement site has been well planned and approved by WMG. The resettlement site will be well facilitated with social services and infrastructures, such as medical care, financing and commercial services, public transport, schools, entertainment, etc. There is hospital for women

and infants and hospital of red-cross society, Wuzhou College, Xihuan Primary School, Primary School attached to No. 2 Teacher’s College, No. 5 Middle School, No. 1 Middle School, Taihechong Leisure Park, newly built residential zones including Shuimulanshan, Guangsha Garden and Synthetic Gemstone Jewelry Park, and matured residential zones such as Yuehe Garden and Zijinghua Gargen. Zaochong Resettlement Area will have better living environment with convenient transportation, easier access to markets and job opportunities, and higher quality of houses. More important, it is geohazard-free area.

Zaochong

Pingminchong

Figure 8-1 Location of Project Development Area (Pingminchong) in Hedong Area and New Resettlement Site (Zaochong) in Hexi Area

In Zaochong resettlement area, the total planned area is 183,081.35 m2, with total area of structure at 413,745.65 m2. The Area will consist of 3 independent zones, i.e. resettlement zone (including cheap rental houses), economy housing zone, and infant and children’s education zone, with associated facilities such as kindergarten, commercial business area, leisure and greening area, power distribution house, pressure pumping house, etc. The Zaochong new resettlement area enjoys the preferential policies of economy houses. The IA, Dongtai will plan and implement the resettlement, and construct the resettlement site with approval by the local government before the relocation take place. The IA will ensure to make the new houses available to the APs before the structure demolishment in the original place. For the household who wants a new house in the resettlement site, the new relocation house (replacement house) will keep the same floor area as previous one. For the APs who have only one house and with less than 12 m2 structure per capita, new house with 12 m2 per capita will be provided as compensation, for additional area beyond 12 m2 per capita, the price of economy house will be applied.

The resettlement area will be divided into four parts, front, rear, east and west parts. For the front part, there will be eight 6.5-storey buildings with semi-underground parking area5 and two 2-storey commercial housing (including grocery stores); for the west part, there will be four 6- storey and nineteen 6.5-storey low-rise buildings at south-north direction, three 12-storey buildings with underground parking area; for the east part, there will be twenty-two 6.5-storey buildings with underground parking area at south-north direction; for the rear part, there will be twenty-five 6.5-storey buildings with north-west towards south-east direction. The apartments are medium- and small- size, with two to three rooms and one living room. About 70% of the apartments are less than 90 m2. A total of 1,825 house units are available for the resettlement of the affected households, including 1,400 units with floor area of 70 m2 - 90 m2, 300 units with area of 100 m2, 125 units with area of 120 m2. All these economy houses will be constructed for the purpose of resettlement of the affected households. If affected houses who choose to live in the resettlement area and to be compensated with replacement houses, they will be offered with the same size house as their original ones. If they want to buy bigger houses, the extra area will be paid at the price of regular price of economy houses. According to the regulation by WMG that all newly built buildings should be constructed with underground parking space. According to this regulation, underground parking will be constructed in Zaochong Resettlement Area to be used for motorbikes, electric-bicycles, and bicycles of the residents within the resettlement area.

The layout of the Zaochong resettlement community is presented in Figure 8-2. The community is designed to provide full infrastructure services and facilities, including internal roads, road lighting, parking lots and green space.

5 Underground parking is regulated to be constructed by Wuzhou government for all newly built buildings. The underground parking designed in Zaochong Resettlement Area will be used for motorbikes, electric-bicycles, and bicycles of the resident in the resettlement area.

Figure 8-2: Layout of Zaochong Resettlement Site

The economy housing zone is located at the center of the residential area, separated with resettlement zone by south-north and east-west trunk roads within the Area. The zone consists of twenty 18- to 25-storey high-rise buildings with elevators, which has fully taken into consideration of different needs of the resettlers for comfortable and pleasant living conditions with different income levels. The resettlers could choose replacement houses or choose cash compensation to purchase the high-rise building with elevators by using the compensation payment plus paying price difference. Table 8-2 provides the households opting for replacement houses in Zaochong Area. The tenants to be affected will be arranged for rental houses in Zaochong resettlement area.

Table 8-2 Households Opting for Replacement Houses in Zaochong Area N = 1,144 Poor HH Low Income Middle Income Remarks Existing Area of Houses < 50 m2 21 168 242 None of households get lesser than before 50 m2 – 60 m2 55 199 114 because they will get replacement houses. A 60 m2 – 70 m2 11 89 38 total of 132 households will get bigger houses as 70 m2 – 80 m2 54 32 they want bigger space, the price of the houses 80 m2 – 100 m2 27 19 in the resettlement area is about CNY500 lower > 100 m2 75 than the market price and financially they are Type of Housing Poor HH Low Income Middle Income affordable. They will invest additional cash to Frame 45 invest in the extra space. For the poor houses if 2 Brick-concrete 22 499 337 the structure is less than 12 m per capita, they Brick-wood 65 517 331 will get equivalent replacement houses. The Poor HH Low Income Middle Income houses in the resettlement area is much more affordable than available in the market. Size of Houses that the APs Can Afford in New Resettlement Site

< 50 m2 21 157 187 2 2 Some households will choose to get two units of 50 m – 60 m 55 209 117 houses to be equivalent with or bigger than their 2 2 60 m – 70 m 11 93 38 original houses. 70 m2 – 80 m2 57 43 80 m2 – 100 m2 29 29 > 100 m2 98

It is planned that 1 new RC will be set up in Zaochong Resettlement Area. Although the resettlers will be under the jurisdiction of the new RC, the social network, cultural environment and living patterns will almost keep the original ones in Pingminchong area. With improved living environment and housing condition, the resettlement site will be much better than the original Pingminchong area.

In addition to the choice of the resettlement site in Zoachong, the resettlers could purchase commercial houses in the urban area of the city as they wish. Currently the newly developed houses are abundant in urban districts of Wuzhou City. These new houses are mainly located in Xihuan Road, Xidi Road, Xinxing Second Road, Xinxing Third Road and the Hongling new area, with good geographical location. According to Wuzhou Housing Construction Plan (2006-2010), there are 52 thousand apartment units will be constructed during this period, including 46.1 thousand units of commercial buildings. These houses could meet the demands of the residents. According to compensation standard of preliminary confirmation, the average price is CNY 1,200/m2 for frame structure. The households with stable income (working in institutions and enterprises) and some savings, they could afford to purchase commercial housing through mortgage from bank. For these households, their annual family income is about CNY35,000. The compensation for 100 m2 frame structure totals at CNY 120,000 with compensation rate of

CNY1,200/m2. If the price of commercial houses is CNY 1,800/m2 and they intend to purchase houses with 100 m2, they will use CNY 108,000 compensation money as down payment and take 15 years mortgage loan for remaining cost of CNY 72,000. Thus they need to pay CNY 571 per month as mortgage payment to the banks. It is affordable for them. Therefore they are satisfied with compensation rate.

The households whose houses are demolished could also purchase the economy houses provided by the Government. They have the right to ask for the economy houses with floor areas not less than the previous one. For the additional floor areas of the same type of houses, they will pay the cost price of the new house. If they purchase a different type of house, they have to pay for additional floor areas according to the commercial price. Currently the price for economy houses in Wuzhou City ranges from CNY 900 to CNY 1,000 per square meter. Based on the compensation standards of CNY1,200 for frame structure, the relocated APs could afford to purchase a new economy houses for the same area with the compensation. For households who wish to buy economy houses, the current price of economy houses is CNY1,000/m2. The compensation rate for houses in frame structure is CNY1,200/ m2, which means they can afford bigger houses. The compensation rate of houses in brick-concrete is CNY1,000/m2, which means they can afford the same size houses. The compensation rate for houses in brick-wood structure is CNY750/m2, which means they need to make up the gaps of CNY250/ m2. As a result, all of the households who will lose brick-wood structure would choose replacement housing scheme and no affordability issue to them. For 216 households renting houses in Pingminchong, they will move into the rental houses subsidized by WMG in Zaochong resettlement area and they will pay the same rate per month as specified in their rental agreement for equivalent area of housing.

For safety reason, the demolition of the houses can not be carried out by the resettlers themselves. It should be demolished by the qualified house demolishment agency. However, the materials such as doors and windows can be disposed and re-used by the households themselves. The salvageable materials such as doors and windows can be disposed to sale to recycling stations for earning some money by the APs. For houses without property certificates, after relocation into replacement houses in Zaochong Resettlement Area, their status of house ownership will be legitimized. For the tenants, they could have the rights to extend the lease or obtain equivalent compensation with the terms of the extension contract are the same as the previous one. They can rent the houses in Zaochong Resettlement Area

For removing the household auxiliaries, such as telephone, cable TV networks, air conditioner, and water and electric supply facilities, cash compensation for replacement cost should be paid to the affected households at replacement value.

8.2.1.3 Non-Residential Structure Demolishment of Institutions, Enterprises and Shops

In total, 11 institutions and enterprises (5 state-owned institutions including 2 schools, 2 state- owned enterprises, 3 collective-owned enterprises, and 1 private-owned enterprise) and 7 shops will be demolished. A total of 1,116 persons will be affected by the non-residential structure demolishment. Table 8-2 presents the households and populations to be affected due to non- residential structure demolishment and resettlement destination.

Table 8-2 Households and Populations to Be Affected by Non-Residential Structure Demolishment and Destination of Resettlement Affected APs Type of Ownership RCs/Institutions & Enterprises Resettlement Location HHs (No.) (No.) Of the total 35 teachers & 265 students to be affected, 5, 5, and 8 teachers, and 60, 60 and 32 students will be merged into Xihuanlu Primary School in Dieshan District (resettlement area), wenlanlu lu Primary School and the 2nd Primary School of Normal Colleage respectively; 4 teachers and 23 students will be merged into Wenhualu Primary School; 8 teachers and 60 Pingminlu Primary School 1 - 148 students into Fuminlu Primary School; and 5 teachers and 30 students into Yungailu Primary School. These schools are not far from the new resettlement area, which have better teaching facilities and higher teaching quality than that of Pingminchong Primary School. Teachers and Public Institutions students to be relocated agreed with such resettlement arrangements. All affected teachers and 300 students will be moved to the new campus of the School located at the opposite side of “Liangguang Wholesale Market” beside Changzhou District Government Wuzhou S&T School 2 - 300 and built 4 years ago. The new campus is 4 km away from the new resettlement area. All teachers and students do not live in resettlement area. Cangwu House Admin. Office 2 18 45 The institution and All APs will move to Zaochong Resettlement Area. Wuzhou Real Estate Bureau 2 103 308 The institution and All APs will move to Zaochong Resettlement Area. Environment & Sanitation Office 2 15 45 The institution and All APs will move to Zaochong Resettlement Area. Of the total APs, 30 persons (24 elders living in and 6 employees living outside Pingminchong) will be transferred to Fuminlu Social Welfare Residence and 30 persons (24 elders living in and 6 employees living outside Pingminchong) to Yungai Social Welfare Residence. The living Baiyun Social Welfare Residence 3 - 60 State-Owned Enterprises condition of the new social welfare residence is better than that of Baiyun Social Welfare Residence. They have special health care doctors, nurses and employees. All these elders do not need to work. They agreed to move to new place free from geohazard. Wuzhou Postal Office 2 24 60 The institution and All APs will move to Zaochong Resettlement Area. Pingxi Community Office 2 - 10 The institution and All APs will move to Zaochong Resettlement Area. The enterprise has already been shut-down in 2001, the employees has been dismissed. According to the enterprise restructuring and reform policy of PRC in 2000, all employees were Baiyun Palm Brush Factory 4 - 45 offered a severance pay based on their length of service worked in the enterprises. As a result, Collective-Owned Enterprises the enterprise will not be re-established. The enterprise has already been shut-down, the employees has been dismissed in 2003. According to the enterprise restructuring and reform policy of PRC in 2000, all employees were Baiyun Paper Box Making Factory 4 - 30 offered a severance pay based on their length of service worked in the enterprises. As a result The enterprise will not be re-established.

Affected APs Type of Ownership RCs/Institutions & Enterprises Resettlement Location HHs (No.) (No.) The enterprise and affected employees will relocate to the industrial park of Dieshan District (resettlement area). All affected employees live outside of Pingminchong. The industrial park is Private-Owned Enterprise Liyanxun Enterprise 4 - 65 10 km away from Pingminchong. The employees may spend more time on the way to new site but the bus ticket price is the same as that of before, employees will not suffer from any losses. The new resettlement site has been agreed by the affected enterprise. Family-Owned Shops 5 - 0 All shops will be relocated to Zaochong Resettlement Area. TOTAL 160 1,116 Note: 1 A total of 300 teachers and students will be affected by non-structure demolishment. Of the total, 35 teachers and 117 students who are living in Pingmingchong valley are accounted in the number of APs to be affected by residential structure demolishment of individual households in private houses. 2 The APs are living in Pingmingchong valley. 3 The demolishment of Baiyun Social Welfare Residence will affect 60 persons. Of which 48 persons are living in the residence, and 12 persons are living outside of the residence. 4 The APs are living outside of Pingminchong Area. 5 The APs are included in the residential structure demolishment.

Of the above mentioned institutions, enterprises and shops to be demolished, cash compensation or replacement houses will be provided to the affected owners for the demolishment of non-residential structures. For the demolished Pingminlu Primary School, the school will not be re-established, and the compensation will be used to upgrade the equipments and facilities of the host schools, and the affected teachers and students will be arranged to merge into the nearby schools by Dieshan District Education Department (Zaochong Resettlement Area) and Wanxiu District Education Department (Pingminchong Area). The host schools have sufficient resources of teachers and equipments with good quality. The environment of the schools is much better than the old school in Pingminchong.

The affected Wuzhou S&T School is a sub-campus. In total, Wuzhou S&T School currently has 1,500 students, including 850 male students and 650 female students. The school was established in 1984, which is earliest school established in Wuzhou City. The main campus of the School was built 4 years ago, which is opposite to “Liangguang Wholesale Market” and beside Changzhou District Government. In the last more than 10 years, the school has been awarded as an excellent institution. The school has well facilitated with rich resources of teachers, equipments, and advanced teaching with good management. Since the establishment of the school, it has provided a large number of professional technicians to the society. The old school to be demolished has only a small proportion of teachers and students of the School. All the teachers and students will fully move into the newly built main campus. The compensation could be used to improve the equipments and facilities of the school. With nice and pleasant environment of the school, it is expected that the demolishment will benefit the relocated teachers and students.

For the affected state-owned public institutions of Cangwu House Administration Office, Wuzhou Real Estate Bureau, and Environment and Sanitation Office, the state-owned enterprise of Wuzhou Postal Office, collective-owned enterprise of Pingxi Community Office for the employee households living in, and family-owned shops, Zaochong will serve as the resettlement destination.

The demolishment of the state-owned enterprise of Baiyun Social Welfare Residence will affected 60 persons, including 48 elders living in and 12 employees living outside Pingminchong valley. All of them will be transferred into other social welfare residences in Wanxiu District to be arranged by Civil Affairs Bureau. Wanxiu District has 10 social welfare residences for elders (including 2 state-owned social welfare residences and 8 collective-owned social welfare residences). The affected persons in Baiyun Social Welfare Residences will be arranged to 2 state-owned social welfare residences, including 24 elders living in and 6 employees living outside Pingminchong to Fuminlu Social Welfare Residence and 24 elders living in and 6 employees living outside Pingminchong to Yungai Social Welfare Residence. As the new residences is close to their original places which are 1.5 km away from the original area and within the same urban area, it is expected that no barrier for them to be merged into new living environment.

The collective-owned enterprise of Baiyun Palm Brush Factory and Baiyun Paper Box Making Factory have already shut down and stopped production and operation due to the backward of their products, aging of the machineries, inconvenient access to transportation, and loss of profits several years ago. The employees have already been laid-off. The enterprises will not be re-established. The cash compensation will be re-allocated as settlement to the employees worked in the factories before. Now they are engaged as migrant labors working in Guangdong Province, small business, seasonable work or new job positions in similar factories.

For the private-owned Li Yanxun Enterprise, it has a total of 65 employees (35 males and 30 females). The enterprise is mainly specialized in the production of plastic packaging and electronic accessories with annual production value at CNY 7.5 million. Based on the preference of the enterprise, the government will arrange construction land in Tangyuan Industrial Park of Dieshan District to rebuild the enterprise with necessary supports. Tangyuan Industry Park is 25 km away from Pingminchong and is well facilitated with infrastructures. It is convenient for the employees to the work place with bus access without increase of bus fare cost. After relocation, the environment of the enterprise will be greatly improved.

Based on the inventory data measured in January 2008, the Project will affect 7 small family- owned shops with 15 family members as employees. A total of 300 m2 structure will be demolished, which are attached with their residential houses and will be fully demolished due to the Project construction. The demolished shops are characterized by the features: 1) they use first floor along road as business front with small investment; 2) family-based business with family members as employees; 3) the businesses are mainly involved in grocery, beauty and hair-dressing salon.

Based on the preference of the APs for the resettlement of the shops, the resettlement office of IA and the shop owners have agreed that the compensation will be either in cash and replacement shops. All affected shops (7 shops in total) will be relocated to Zaochong Resettlement Area. According to the plan, the resettlement area will be divided into four parts: front, rear, east and west parts. In the front part, there will be two 2-storey commercial housing (including grocery stores) to be built for hosting the shops. The APs will be allocated with equivalent area of their original shops in the new resettlement site while they move into the resettlement area to reside, thus, no affordability issues will be encountered by them. The APs who choose replacement shops or purchase shops in the resettlement area will be given priority to select commercial housing (shops) in the planned resettlement zone. As a result of the demolishment, 15 family members as employees including the owner themselves will be affected. All of them will be re-employed in the same business in convenient location and improved condition of new shops to be re-constructed in the new resettlement site in Zaochong.

After the structure demolishment and relocation and resettlement, All the APs will maintain their current positions / status and living. With improved environment and quality of houses or buildings and increase employment and income generation opportunities, the living standards of the APs will be improved. Although some minor changes of distances will result in for about 5% of the APs, additional bus fare costs will not be involved as same fare applies to travel to all places in the City for one single trip.

8.2.2 Measures for Increase Income for the APs

The overall objective of income rehabilitation plan is to ensure that all APs losing their means of livelihood (in this case their land or working venue) to the project are able to at least maintain their pre-project levels of income and living standards. To achieve the objective, the following income rehabilitation plan has been proposed for any losses:

8.2.2.1 Measures for Individual Households Living in Private Houses

The residents living in Pingminchong valley are mainly engaged in handicraft works, work outside as seasonable labor or do some small businesses in the downtown area. Most of the

APs are laid-off workers or unemployed persons with a low education level and lack of working skills. According to the survey on income in Pingdong and Pingxi resident communities, the average annual income per capita is CNY9,040. The relocation to Hexi Area and other areas will cause some changes of distance for some people, including increase of some distance for about 30% APs and decrease of some distance for about 60% APs. However, as the affected area and resettlement area is close each other, the impact for the change of distance is minor, and a large proportion of the APs will benefit from the shortened distance as a result of the relocation. The relocation will not result in job loss and associated income loss for the APs. All the APs will keep their original jobs. With the implementation of proposed income rehabilitation measures, the living standards and income level of the APs will be increased.

Wuzhou is the world’s largest synthetic gemstone processing industry and sales base. The resettlement site is next to the base, which is located in Xihuan commercial district and close to the offices of municipal government organizations where there are a large number of population flow and prosperous business atmosphere. The area is in need to engage a large number of labor forces as workers and salesmen. As a result, the prosperities will increase job opportunities and more selection of employment for the APs after relocation. The APs expressed that they would like to get assistance on employment, job training and recommendations to a better working position by the Government. Based on the consultation of the APs’ preference, the following income rehabilitation measures have been planned for the resettlers to increase and enhance their incomes: i) investment and operation of small business (such as clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning, entertainment and catering services); ii) training for employment, in particular training for the jobs which require a large amount of labor forces in the nearby synthetic gemstone processing production and sales base; and iii) project-related employment opportunities. The survey results indicate that of the total affected population who are in labor force, 35% of the APs would like to stick with what they are as before, 40% would like to take more training to increase their skills to find jobs like synthetic gemstone processing, secretary or salesmen, and 25% of the APs would like to involve in small business, such as grocery, sideline products, housekeeping, food and restaurant, and others. As all APs will only move to another place and their income sources will remain the same as before. It will not result in any impacts on the livelihood and income of the APs. However, the relocation of the resettlement site will offer the APs more opportunities to earn additional money as Zaochong is a boosting business area and close to Wuzhou synthetic gemstone jewelry park, where has more convenient transportation services. The APs’ income will not be reduced, but increased if they have technical skills through training. The development of small business is one of the options if they have initial investment. Under the LAR program, skill training will be provided to the APs in labor forces who are unemployed persons and temporary workers accounting for about 2,900 persons and the cost of training will be covered by the IA. For those who would like to operate small business, they can loan some money from the local banks with arrangement and assistance by WMG as a guarantor for initial investment.

Through short-term training, the APs could get more access to the improved employment and new business opportunities. For small business investment, market investigation indicates that this types of business cost about CNY 5,000 to CNY15,000. Taking a 20 m2 grocery shop in Xihuan Road as an example, the investment is CNY15,000, the average monthly sales revenue generated from grocery business could be between CNY15,000 to CNY20,000, the monthly gross income could be between CNY3,000 to CNY4,000. If investing in other business such as fruit selling or food and restaurant business, the monthly gross income generated could be between CNY2,000 to CNY2,500. The relocated APs could purchase or rent commercial shops somewhere at their preference to operate their business. They will be given priority to purchase

or rent a business house in the resettlement area.

Currently, Wuzhou is undertaking large scale urban construction, except the commercial houses in the resettlement area, it is predicted that the commercial houses in Wuzhou will reach 700 thousand m2 (at city and district levels) in 2010. The purchase price of commercial shops ranges from CNY5,000 to CNY10,000/m2 according to different locations. Although the purchase or rental price of the new commercial shops is relatively higher than the old ones in Pingminchong, the location is much better with much higher sales potential and more choices of business types. Due to convenient transportation and large volume of population flow, it will be a good investment to make good income to run a small business from either renting or purchasing a commercial shops. For example, for the previous shops, the rental cost is CNY350/month (about 20 m2) and the sale revenue averages at CNY3,000/month. For the commercial shops along streets in relatively good location, the average rental cost will be CNY3,000/month (such as the places adjacent to the Synthetic Gemstone Jewelry Park in Xihuan Road) and the average sales revenue could reach CNY24,000/month, or even higher. Table 8-3 presents the sales price and rental cost of commercial shops, sales revenue and income earnings for difference business location. Of the total relocated 120 households who would like to operate small business, if they have more than one place to live, to purchase commercial shops will be one of their options. Thus, their income will be increased.

Table 8-3 Sales Price and Rental Cost of Commercial Shops, Sales Revenue and Income Earnings for Difference Business Location Rental Cost of Income Price of Commercial Monthly Sales Location Commercial Earnings Shop (CNY/m2) Revenue (CNY) Shop(CNY/month) (CNY) Pingminchong 1,200 350 3,000 600 Within Residential Communities in 2,000 600 8,000 1,600 Hexi Area Surrounding Area next to Jewelry 6,000 3,000 24,000 4,800 Plaza of Xihuan Road Surrounding Area of Xinxing San Lu 10,000 4,500 60,000 12,000 Civil Square

Through the implementation of above rehabilitation measures, the average annual income of the APs could reach to CNY10,100 per capita (with increase of CNY1,060 per year), which is higher than the average income level of the city after relocation according to the income projection by the economic department. Thus, the incomes of the APs are expected to be increased.

8.2.2.2 Rehabilitation Plan for Institutions, Enterprises and Shops

For the demolishment of all affected institutions, enterprises and shops, cash compensation or replacement structures will be provided to all the owners to compensate the structure losses. During the transitional periods, the loss of production/business stoppage for the affected institutions, enterprises and shops and loss of working days or school days will also be compensated. It is expected that the transitional period of relocation is expected to range from one week to a maximum two weeks. As a result, a maximum of 15 days of temporary job loss or school days loss at CNY525 in total will be provided to each affected person. A total of CNY1,500 at lump sum will be paid to each institution, enterprise and shop to compensate the loss of temporary production or business stoppage during transitional period. In addition, the old houses and buildings will not be demolished until the new houses have been constructed in the

new resettlement site or the new houses have been purchased in new communities. Therefore, it is expected that the impacts to the institutions, enterprise and shop is minor and could be manageable.

Of the total affected institutions, enterprises and shops, except temporary production or business and income loss which will be compensated as mentioned above, no other income losses will be resulted from the relocation. The APs in the institutions, enterprises and shops will maintain their original positions and status and receive the fix salaries as before after resettlement, therefore, no income change is expected to them. Due to the nature of business, the APs in Pingminchong Primary School, Wuzhou S&T School, Baiyun Social Welfare Residence, and Pingxi Community Office will keep their original position and status as well as income.

For the affected institutions and enterprises of Baiyun Postal Office, Cangwu House Administration Office, Wuzhou Real Estate Bureau, and Environment and Sanitation Office, Baiyun Palm Brush Factory, Baiyun Paper Box Making Factory, and the shops, income rehabilitation plan has been proposed for them. For the employee households living in the houses or buildings of Baiyun Postal Office, Cangwu House Administration Office, Wuzhou Real Estate Bureau, Environment and Sanitation Office, they will be paid for the loss of working time at the rate of CNY15/day for the moving to the new sites. Their job will keep the same as before.

The production of Baiyun Palm Brush Factory and Baiyun Paper-Box Making Factory has been ceased for many years and the workers have already been laid-off. Each month, they get laid- off living allowance ranging from CNY200 to CNY350 per capita. According to the preference and the actual status of the factories and the discussion with factory owners, the demolished factories will not be rebuilt. Cash compensation will be paid for the structure demolishment. Based on national policy for the compensation fund reallocation, the workers need to be settled. Baiyun Palm Brush Factory has 45 employees (25 males and 20 females). The employees could get a total of CNY 2.21 million as compensation payment. Baiyun Paper-Box Making Factory has 30 employees (17 males and 13 females). The employees could get a total of CNY 1.188 million as compensation payment. The compensation will be reallocated based on the time duration of employee’s working age. According to dismissal settlement method of similar state- or collective-owned enterprises. It is expected that each employee could get compensation of CNY15,000 at lowest and CNY70,000 at highest for dismissal settlement fund. Of the total employees, currently 62 persons are engaged in production labor for other income sources in addition to the monthly laid-off living allowance. Table 8-4 presents the age groups of the employees.

Table 8-4 Age Groups of the Affected Employees Age Groups 20-35 35-55 55-60 Retired Total Baiyun Palm Brush Factory 6 34 3 2 45 Baiyun Paper-Box Making Factory 5 17 5 3 30

For the employees, after they get dismissal settlement fund, they could use it for small business investment or training for reemployment (such as renting commercial shops or space to engage in clothing, repairing, snack, grocery, etc.). The types of business usually need investment between CNY5,000 to CNY15,000. According to the survey results, 15 persons would like to engage in these types of businesses, and 30 persons expressed that they will involve in the training of house keeping, synthetic gemstone processing, beauty and hair-dressing salon, electronic repairing, etc. The training usually takes two weeks to 1 month, with cost to be covered by the IA from the resettlement budget. According to the salary in Wuzhou City, people

hold the common technical job could earn CNY 800 to CNY1,200 per month. As a result, they will benefit from the relocation and settlement fund, employment and business opportunities.

For the affected private-owned Li Yanxun Enterprise, it has a total of 65 employees (35 males and 30 females). The enterprise is mainly specialized in the production of plastic packaging and electronic accessories with annual production value at CNY7.5 million. Based on the preference of the enterprise, the government will arrange construction land owned by the state in Tangyuan Industrial Park of Dieshan District to rebuild the enterprise with necessary supports. Before relocation, the enterprises are located in Pingminchong with inconvenient transportation and access, which caused no space for further development. After relocation, the environment of the enterprise will be greatly improved. With partial compensation, the enterprise could upgrade the production equipments, invest in technology research & development and switch to other types of products, it is expected that the revenue of the enterprise will be increased, which in turn will bring in salary increase for the employees.

All affected shops (7 shops in total) will be relocated to Zaochong Resettlement Area. According to the plan, the resettlement area will be divided into four parts: front, rear, east and west parts. In the front part, there will be two 2-storey commercial housing (including grocery stores) to be built for hosting the shops. The APs will be allocated with equivalent area of their original shops in the new resettlement site while they move into the resettlement area to reside, thus, no affordability issues will be encountered by them. All of the affected employees of the shops are family members and they will continue their previous work in the shops after resettlement. The old customers of the shops will also the relocated to the new resettlement area in Zaochong so that the shops will not lose their original customers. As a result, no income losses from business operation are expected to the APs. In addition, the new location is next to the booming and expanded commercial district and government buildings of Hexi Area, the well facilitated resettlement area will absorb more people to come and live in the area (planned 20,000 to 25,000 persons). Therefore, it is expected that the number of customers and scope of services will be increased in the coming years. Thus, more income will be generated to the affected shop owners than in the original place. Each shop could expect to gain additional average CNY7,000 more than before relocation. During the transitional period of relocation, allowance of business stoppage to affected owners and allowance for loss of working days to the employees will be paid to compensate the temporary losses. Table 8-5 provides the net income, loss of business stoppage and allowance of business stoppage of each affected shop. In addition, of the seven (7) shops to be affected, six (6) have business licenses. After relocation, the one without business license will be issued a certificate of business license by the local government.

Table 8-5 Net Income, Loss of Business Stoppage and Allowance of Business Stoppage of Each Affected Shop Monthly Loss of Average Allowance of Name of Business Net 15 Days Business No. Nature of Shops Owner Ownership Income Business Stoppage (CNY) Stoppage (CNY) (CNY) 1 Grocery Huang Tianqiu Private 1,500 700 1,500 2 Grocery Meng Jingbo Private 300 150 1,500 3 Grocery Peng Jinhuo Private 1,000 500 1,500 4 Grocery Meng Yanping Private 1200 600 1,500 5 Grocery Li Fengmei Private 2,000 1,000 1,500 6 Grocery Huang Zhiqiang Private 1,500 700 1,500 7 Beauty & Hair Dressing Su Hong Private 1,500 700 1,500

8.2.2.3 Project Related Income Generation Opportunities

During the project construction phase, APs can seek some income generation opportunities, mainly providing services related to the Project construction, such as renting spare houses (if available) to the construction contractors as temporary office or to the construction workers as residence, operating grocery kiosks, and providing food, cigarettes and breweries to the construction teams.

During the construction period, the PMO and IA will offer some temporary employment job opportunities, such as excavation for pipeline and structures and soil and earth transportation. During the project operational period, the APs with suitable qualifications will be employed and receive on-the-job training. Women and the poor will be given priority to be employed by the project. After the constructions of the resettlement site have been completed, it is preliminarily planned that following employment opportunities shall be provided for the APs: 10 security guards for the resettlement area, 15 management posts, 5 cleaners and about 30 public welfare position jobs. The ratio of employment for men and women will be 1:2. The salary will be between CNY600 to CNY1,000 per month. As a result, the APs could get access to additional income generation opportunities and additional income. Therefore, the APs will benefit from the resettlement of the Project.

8.2.2.4 Provision of Technical Training to the APs

In recent years, with the rapid development of Wuzhou City’s economy and the establishment of the Wide North Bay Economic Development Zone, the formation of the three-dimensional transportation grid and increased speed of industry transfer in eastern area, Wuzhou City has become the joint that connect the Wide North Bay Economic Development Zone and Wide Pearl River Delta. In the near future, there will be a lot of processing industries move to Wuzhou City, promoting the development of logistics, service industries and tourism. All these will bring in lots of employment opportunities to the city and the technical workers and service labors will be in shortage.

In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the ROs and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The technology training will be consistent with the district economic features, requirements

of the labor market and the enterprises to ensure that the training is practical, efficient and targeted.

By taking into consideration of the low education status and lack of working skills for the major labor force of the affected households, especially women, the IA will ensure that 50% of the trainees will be females. After training of occupational skills, the APs could get job nearby the resettlement area. A total of CNY724,684 has been budgeted as training cost, which will cover the cost for 2,900 persons who are unemployed, temporary workers and seasonable labors, with average training cost CNY250 per person. MWG will provide necessary assistance to the APs who would like to get access to credit from the local banks.

The training will be carried out twice a year, commenced from the third quarter of 2009 and last till first quarter of 2013. The training will be implemented in association with local district government, RCs, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, 50% of women should be included. The training includes:

(1) Public security guard, cleaning, public aesthetic landscaping, maintenance of public facilities, management of parking lot, and others; (2) Horticulture, sewing and knitting, beauty and hairdressing; (3) Maintenance and repair of motorcycle, vehicle, and electronic products; (4) Car decoration and management of cleaning and washing accessories; (5) Food and catering services, and domestic servant services; (6) Sales of products, small business registration and operation; and, (7) Technology on synthetic gemstone processing.

8.2.2.5 Rehabilitation Plan of Ground Attachments

The compensation of ground attachments, including infrastructures and special facilities will be based on the replacement value. Compensation in cash will be paid to the affected owners to reconstruct the ground attachments. The affected basic infrastructures and facilities, such as cable, telephone services, etc. will be re-established in the resettlement site by respective public utility company.

The units with property right will be in charge of the rehabilitation and reconstruction. The rehabilitation measures of the ground attachments should be planned in advance. In practical operation, these measures should be suitable to local conditions to ensure safe, efficient, timely, and accurate, and try to minimize impacts on the local residents.

For the relocation of affected municipal infrastructures and special facilities, the relocation should be carried out according to the project construction maps and drawings. The relocation of the affected municipal infrastructures and special facilities should be reduced as much as possible on the premise that the constructions do not affect the residents in the right of way (ROW). Reconstruction and rehabilitation should be undertaken first, then demolishment.

8.2.2.6 Income Analysis after Resettlement

Table 8-6 provides the income analysis of the APs to be affected by residential structure demolishment and non-residential structure demolishment of institutions, enterprises and shops after resettlement. It can be seen that the income for the APs of Pingminchong Primary School, Wuzhou S&T School, Baiyun Social Welfare Residence, Pingxi Community Office, Cangwu

House Administration Office, Wuzhou Real Estate Bureau, and Environment and Sanitation Bureau will keep the same after relocation due to the nature of fixed job positions. After relocation to the new resettlement area, it is much easier to find new jobs in near factories or gemstone jewelry processing factories with average salary of CNY 800 to CNY 1,000 per month. The average income for the APs of individual households, and the rest of institutions, enterprises and shops will be increased ranging from CNY1,000 to CNY7,000 per year if the income rehabilitation measures are properly implemented.

Table 8-6 Income Analysis Average Annual Average Annual Type of RCs/Institutions, Enterprises & APs (No.) Income before Income after Ownership Shop Relocation (CNY) Relocation (CNY) Residents of Pingxi RC 2,128 9,040 10,100 Private Houses Residents of Pingdong RC 3,579 9,040 10,100 State-Owned Wuzhou Postal Office 60 15,600 16,660 Enterprises Baiyun Social Welfare Residence 60 8,400 8,400 Baiyun Palm Brush Factory 45 9,600 10,600 Collective-Owned Baiyun Paper Box Making Factory 30 8,400 9,400 Enterprises Pingxi Community Office 10 8,000 8,000 Private-Owned Liyanxun Enterprise 45 9,600 10,600 Enterprise Cangwu House Admin. Office 45 8,000 8,000 Wuzhou Real Estate Bureau 308 7,600 7,600 Public Institutions Environment & Sanitation Office 65 9,000 9,000 Pingminlu Primary School 300 - - Wuzhou S&T School2 300 - - Family-Owned Shops 0 15,000 22,000 Note: Please refer to Para. 157 and Para 158 in general practice of service and tertiary industry and Table 8-3 for CNY10,100 calculation.

8.2.3 Special Concerns during Resettlement Process

8.2.3.1 Gender Issue

According to the Chapter of “Women and Economy” documented in Women’s Development Plan of Guangxi Zhuang Autonomous Region (2001-2010), it clearly stated that “The rights of women for work should be protected, it should be ensured that women enjoy the equal right with men on economic resources, the discrimination to women should be forbidden, women and men should have equal status for employment, and women’s labor rights should be protected”. Thus, women have equal entitlement and rights with men for employment and training in the Project.

The household surveys showed that there are many laid-off and jobless women workers in the affected households. They are in inferior position of looking for job opportunities when competing with men. They usually work outside as seasonable labors or run a small business. There are some women-headed households. They are responsible for the households’ tasks. The future welfare of women to be affected is important. Therefore, special attention will be paid to women’s special concerns, such as compensation payments, training programs, and other assistances, to reduce any special social risks caused by the implementation of this Project.

Women will be eligible, on an equal basis, for all compensation payments, training programs

and other assistances to be provided. The houses to be purchased or allocated for resettlement should belong to both wife and husband of a household. In order to protect the properties of the APs, both the names of wives and husbands should be written on the property certificate of houses. In order to ensure this, the EA will carry out explanation and propaganda work to the community women and closely involve them in the resettlement process.

In addition to income support, other relevant measures will be adopted by the Project. Currently the Women’s Federation (WF) of Wuzhou City has initiated at least three programs - “sunshine training program”, “4050 employment training program” and “micro-credit program”. Many laid- off female workers from previous enterprises have been re-employed through these programs. The IA, ROs, WF, and RCs have reached agreement that WF will involve in guiding consultation and public participation for income rehabilitation activities in combination with their current ongoing programs so that female APs can make more earnings than before.

8.2.3.2 Assistance to Vulnerable Households

Of the total affected APs, 351 households or 1,004 persons (17.76% of the total households) are classified as vulnerable groups, including households with “Five Guarantees, households living under MLG, disabled, women-headed households, and households with small residential area less than 12 m2 per capita The local Civil Affairs Bureau and Labor and Social Security Bureau will take the responsibility to incorporate these households into social safeguard program. A monthly MLG of CNY 195 per capita will be provided to them by the local Civil Affairs Bureau. If the vulnerable people could be employed in the resettlement area or by the Project, a minimum salary at CNY580 per month will be guaranteed to them. For their income rehabilitation, the following measures will be adopted: i) training without charge will be provided to them to increase the knowledge and skills of the vulnerable groups; ii) provision of social safeguard measures to them; iii) provision of employment opportunities generated by the Project, and provision of employment information to the vulnerable groups; iv) provision of micro-credit to them.

Table 8-7 Proposed Measures to the Vulnerable Households Types of Vulnerable Households No. of HHs Proposed Measures Provision of MLG by local civil affairs bureau, assistance HHs with “Five Guarantees” 19 during relocation process by WMG, and priority will be given to choose building location and floor by the IA and WMG Provision of MLG by local affairs bureau, provision of training HHs Living under MLG 32 and employment by the IAs, and micro-credit by WMG, and assistance during relocation process by WMG Disabled 36 Provision of MLG by local civil affairs bureau, assistance during relocation process by WMG, and priority will be given to choose building location and floor by the IA and WMG Provision of MLG by local affairs bureau if their income is less than MLG, provision of training and employment by the Women-Headed Household 103 IAs, and micro-credit by WMG, assistance during relocation process by WMG, and priority will be given to choose building location and floor by the IA and WMG Replacement houses will be provided to them, and HHs with Small Residential Area 161 assistance during relocation process by WMG

During the relocation stage, the IA and local government will provide in-kind assistance for the vulnerable groups in the following aspect:

- For the elderly or disabled, priority should be provided to them during the selection of the location and floor of the resettlement buildings; - Provide labor and transportation assistance to the vulnerable groups without charge.

IX. COST ESTIMATES

9.1 Compensation and Resettlement Costs

The resettlement costs are included in the overall budget of the Project. The total cost of resettlement for the Project is estimated to be CNY 221.25 million, equivalent to US$ 31.61 million in 2008 prices, including 15% contingencies (physical and price). The estimated costs include compensation for residential structure and auxiliaries of households living in private houses, residential structure of households and populations living in the houses or buildings of institutions and enterprises, non-residential structure, infrastructure and special facilities, other costs, and contingency. The detailed cost estimates of resettlement are presented in Table 9-1. The summary cost is presented in Table 9-2.

Table 9-1 Detailed Cost Estimates of Resettlement No. Item Unit Quantity Unit Price (CNY) Cost Estimate (CNY) 1 Demolishment of Private Residential Structure & Auxiliaries 149,245,520.00 1.1 Residential Structures m2 130,851.00 132,813,765.00 1.1.1 Frame m2 26,170.20 1,200.00 31,404,240.00 1.1.2 Brick-concrete m2 91,595.70 1,000.00 91,595,700.00 1.1.3 Brick-wood m2 13,085.10 750.00 9,813,825.00 1.2 Relocation Allowance m2 130,851.00 5.00 654,255.00 1.2.1 Relocation allowance m2 130,851.00 5.00 654,255.00 1.3 Auxiliaries 15,777,500.00 1.3.1 Kitchen No. 1,486.00 5,000.00 7,430,000.00 1.3.2 Toilet No. 1,232.00 3,500.00 4,312,000.00 1.3.3 Balcony No. 1,310.00 1,000.00 1,310,000.00 1.3.4 Water meter Set 1,507.00 800.00 1,205,600.00 1.3.5 Ammeter Set 1,500.00 600.00 900,000.00 1.3.6 Coal gas Set 1,216.00 300.00 364,800.00 1.3.7 Telephone No. 1,250.00 150.00 187,500.00 1.3.8 Cable TV HH 1,352.00 50.00 67,600.00 2 Demolishment of Residential Structures of Institutions & Enterprises 6,743,125.00 2.1 Wuzhou S&T School m2 800.00 1,200.00 960,000.00 2.1.1 Frame m2 800.00 1,200.00 960,000.00 2.2 Baiyun Social Welfare Residence m2 600.00 1,200.00 720,000.00 2.2.1 Frame m2 600.00 1,200.00 720,000.00 2.3 Pingxi Community Office m2 250.00 1,000.00 250,000.00 2.3.1 Brick-concrete m2 250.00 1,000.00 250,000.00 2.4 Wuzhu Postal Office m2 250.00 1,200.00 300,000.00 2.4.1 Frame m2 250.00 1,200.00 300,000.00 2.5 Cangwu House Admin. Office m2 250.00 1,000.00 250,000.00 2.5.1 Brick-concrete m2 250.00 1,000.00 250,000.00 2.6 Wuzhou Real Estate Bureau m2 3,025.00 3,125,000.00 2.6.1 Frame m2 500.00 1,200.00 600,000.00 2.6.2 Brick-concrete m2 2,525.00 1,000.00 2,525,000.00 2.7 Environment & Sanitation Office m2 670.00 1,000.00 670,000.00 2.7.1 Brick-concrete m2 670.00 1,000.00 670,000.00 2.8 Relocation Allowance m2 5,845.00 5 29,225.00 2.9 Stoppage Allowance No. 7 1,500.00 10,500.00 2.10 Allowance for Working Day Lost Employee 816 525.00 428,400.00 3 Demolishment of Non-Residential Structure of Institutions, Enterprises and Shops 14,806,375.00 3.1 State-Owned Institutions m2 6,035.00 6,981,600.00 3.1.1 Pingminlu Primary School m2 3,250.00 3,770,000.00 3.1.1.1 Frame m2 2,600.00 1,200.00 3,120,000.00

No. Item Unit Quantity Unit Price (CNY) Cost Estimate (CNY) 3.1.1.2 Brick-concrete m2 650.00 1,000.00 650,000.00 3.1.2 Wuzhou S&T School m2 2,785.00 3,211,600.00 3.1.2.1 Frame m2 2,133.00 1,200.00 2,559,600.00 3.1.2.2 Brick-concrete m2 652.00 1,000.00 652,000.00 3.2 Collective-Owned Enterprises m2 2,790.00 3,399,000.00 3.2.1 Baiyun Palm Brush Factory m2 1,530.00 2,211,000.00 3.2.1.1 Frame m2 1,530.00 1,200.00 1,836,000.00 3.2.1.2 Brick-wood m2 500.00 750.00 375,000.00 3.2.2 Baiyun Paper-Box Making Factory m2 1,260.00 1,188,000.00 3.2.2.1 Frame m2 540.00 1,200.00 648,000.00 3.2.2.2 Brick-wood m2 720.00 750.00 540,000.00 3.3 Private Enterprises m2 3,940.00 3,579,700.00 3.3.1 Liyanxun Enterprise m2 3,940.00 3,579,700.00 3.3.1.1 Brick-concrete m2 3,006.00 1,000.00 3,006,000.00 3.3.1.2 Brick-wood m2 300.00 750.00 225,000.00 3.3.1.3 Simple structure m2 634.00 550.00 348,700.00 3.4 Shops m2 300.00 313,500.00 3.4.1 Frame m2 90.00 1,200.00 108,000.00 3.4.2 Brick-concrete m2 192.00 1,000.00 192,000.00 3.4.3 Brick-wood m2 18.00 750.00 13,500.00 3.5 Stoppage Allowance No. 11.00 16,500.00 3.5.1 Institutions & enterprises* No. 4 1,500.00 6,000.00 3.5.2 Shops No. 7 1,500.00 10,500.00 3.6 Allowance for Working Day Lost Employee 983 525.00 516,075.00 4 Infrastructures & Special Facilities 17,395,193.00 4.1 Public toilet m2 1,050 800.00 840,000.00 4.2 10KV power pole No. 10 2,500.00 25,000.00 4.3 380V power pole No. 26 2,000.00 52,000.00 4.4 Transformer (KA) No. 3 150,000.00 450,000.00 4.5 Water culvert (concrete) m2 3,000 150.00 450,000.00 4.6 Water culvert (slurry) m2 4,225 120.00 507,000.00 4.7 Water culvert (mud) m2 500 80.00 40,000.00 4.8 Gravel road m2 15,000 100.00 1,500,000.00 4.9 DN200 water supply pipe m 500 600.00 300,000.00 4.10 DN100 water supply pipe m 1,550 300.00 465,000.00 4.11 DN80 water supply pipe m 80 240.00 19,200.00 4.12 DN70 water supply pipe m 80 210.00 16,800.00 4.13 DN65 water supply pipe m 290 200.00 58,000.00 4.14 DN50 water supply pipe m 3,030 150.00 454,500.00 4.15 DN25 water meter Set 400 800.00 320,000.00 4.16 DN20 water meter Set 1,000 800.00 800,000.00 4.17 Drainage pipe Set 400 800.00 320,000.00 4.18 GYTS-12B1 telecommunication cable m 500 146.00 73,000.00 4.19 GYTS-8B1 telecommunication cable m 3,900 38.47 150,033.00 4.20 Overhead 24 cores and 12 cores optical 5.1 30,000.00 153,000.00 Km fiber cable line 4.21 Overhead artery optical fiber line km 26.5 20,000.00 530,000.00 4.22 Cable TV distribution networks HH 1,106 100.00 110,600.00 4.23 35 m2 power cable m2 250 3,000.00 750,000.00 4.24 Young regular tree (10-30 cm) No. 100 50.00 5,000.00 4.25 Matured regular tree (over 30 cm) No. 20 100.00 2,000.00 4.26 Scattered fruit tree (1 year) No. 15 100.00 1,500.00 4.27 Scattered fruit tree (2 years) tree 18 100.00 1,800.00 4.28 Scattered fruit tree (3 years) tree 11 100.00 1,100.00 4.29 Scattered fruit tree (over 5 years) tree 20 100.00 2,000.00 4.30 Old structure m2 149,961 60.00 8,997,660.00

No. Item Unit Quantity Unit Price (CNY) Cost Estimate (CNY)

Basic Cost of LAR 188,228,013.00

5 Other Costs 4,789,244.00 5.1 RP Preparation 300,000.00 5.2 Administration 1% of LAR 1,882,280.00 5.3 M&E 1% of LAR 1,882,280.00 5.4 Training 724,684.00 6 Contingency 28,234,202.00 6.1 Physical contingency 10% 18,822,801.00 6.2 Price contingency 5% 9,411,401.00

TOTAL 221,251,459.00 Note: * The number of Wuzhou S&T School is accounted in the number of residential structure demolishment. ** Due to inaccuracy to calculate the inflation rate in proceeding years, the compensation rates in the RP do not include the inflation, but will be adjusted based on the actual inflation rate in that specific year and the budget is included in the contingency of resettlement cost.

Table 9-2 Summary Resettlement Costs No. Item of Compensation Cost Estimates (CNY) 1 Land Acquisition1 0.00 2 Demolishment of Private Residential Structure & Auxiliaries 149,245,520.00 3 Demolishment of Residential Structures of Institutions & Enterprises 6,743,125.00 4 Non-Residential Structure Demolishment 14,806,375.00 5 Demolishment of Infrastructures & Special Facilities 17,395,193.00 6 Basic Infrastructure & Facilities for Rehabilitation of Pingminchong2 0.00 7 Other Costs 4,789,244.00 8 Related Taxes 0.00 9 Contingency 28,234,202.00

TOTAL 221,251,459.00 Note: US$ 1 = CNY 7.0 1 For permanent land acquisition of Pingminchong, no cost will be involved. The land acquisition in the resettlement area of Zaochong will cost CNY32 million, which is included in the engineering cost of the Project. 2 The cost is included in the engineering cost of the Project.

9.2 Annual Budget

According to the project schedule, the project construction will take about 28 months to complete between March 2009 and June 2011. The annual cash flow is estimated to be 50% or CNY 110.63 million in 2009, 30% or CNY 66.38 million in 2010, and 20% or CNY 44.25 million in 2010, respectively. Table 9-3 provides the annual budget of resettlement cost.

Table 9-3 Annual Budget of Resettlement Cost (CNY million) 2009 2010 2011 TOTAL Total Budget (104 CNY) 11,062.58 6,637.55 4,425.03 22,125.15 Proportion of Total Budget (%) 50% 30% 20% 100%

9.3 Flow of Fund

Fund related to resettlement will be distributed through the following channels (See Table 9-4):

Table 9-4 Flow of Fund Residential structure for households living → Dongtai → RO → RC → APs in private houses

Residential structure for households living Institutions or in houses or buildings of institutions and → Dongtai → RO → → APs Enterprises enterprises

Owner of Institution, Enterprise & Non-residential structure → Dongtai → RO → Shop

Auxiliaries → Dongtai → RO → RC → APs

RC, Institution Relocation allowance → Dongtai → RO → → APs & Enterprise

Production or business stoppage allowance Owner of Institution, Enterprise & → Dongtai → RO → Shop

→ Institution, Allowance for salary loss of employees Dongtai → RO → Enterprise & → Employees Shop Owner

Ground → Dongtai → RO → Owner Attachments

Investigation and design cost → Dongtai → Design institute

Office administration costs → Dongtai → LAR implementation agencies

Training cost → Dongtai → Training institutions

M&E → Dongtai → IMA

X. LAR IMPLEMENTATION SCHEDULE

10.1 Principles

The resettlement schedule for land acquisition, house demolition and relocation for the Project will be coordinated with the respective construction schedule. Based on the time schedule of the Project, the land acquisition and resettlement schedule have been developed, reflecting the linkage and consistency between the time schedule of resettlement/land acquisition and civil works construction tasks.

In order to ensure that all aspects of the RPs can be achieved, land acquisition will start at least one month before construction. The resettlement site should be constructed before old housing, institutions, enterprise and shops are demolished. The affected persons must move into their new housing at least one month before the demolition of the houses or businesses. Before the land acquisition and APs are moved, a final measurement survey will be conducted in each RC, and the contracts with each affected household, institution, enterprise and shop will be negotiated and signed. The disbursement of compensation should be paid. Also, arrangements for housing replacement will be established before relocation proceeds.

10.2 LAR Implementation Schedule

Resettlement implementation will be scheduled in stages to coincide with the overall Project schedule between March 2009 and March 2013. The construction of host area in Zaochong will be implemented from March 2009 to March 2012. APs from Pingminchong will start to move into the new resettlement houses from June 2011 and June 2012. It is planned that construction will not take place before APs are fully compensated and relocated to new houses. It is planned that the land acquisition shall be completed before the start of Project construction.

However, before the APs are moved, a final measurement survey will be conducted in RCs, institutions, enterprises and shops. The compensation contracts will be negotiated and signed. Also, arrangements for housing replacement will be established before relocation proceeds. Based on the detailed measurement survey (DMS), the RPs will be updated and submitted to ADB.

The LAR schedule has been divided into four stages:

1) Land Acquisition and Compensation Planning

- Apply for and receive “Planning Land Use Certificate”, “Construction Land Use Certificate” and “House Demolition Certificate”; - Conduct detailed measurement surveys of the affected area to determine the specific losses eligible for payment of compensation; - Identify poor and vulnerable APs; - Finalize compensation/resettlement strategies in consultation with the local governments, APs and their representatives; - Conduct public information/consultations on RPs; - Sign contract; and, - Finalize relocation area.

2) Land Acquisition and Resettlement Activities

- Provide compensation payment; - Construct new houses, infrastructure and other facilities; - Transfer APs to new location; and, - Demolish buildings and other structures.

3) Income Restoration

- Provision of employment opportunities during the Project construction and operation phases; - Assistance in the identification of employment and business opportunities for APs in the local enterprises and businesses; - Targeted training; - Promotion and development of secondary and tertiary industry; and, - Special attention paid to the vulnerable groups.

4) Monitoring

- Hire monitoring agency; - Approve TOR by the Bank; - Monitor LAR; - Monitor income restoration program; - Monitor poverty reduction program and assistance provisions to vulnerable groups; and, - Conduct external evaluation of the Project.

The resettlement supervision milestone is presented in Table 10-1. Based on the project schedule of civil works, the resettlement plan preparation will be continue after the PPTA stage, and the land acquisition and resettlement are planned to commence in March of 2009 and complete in June 2012. The RP planning and implementation schedule with time bound activities is shown in Figure 10-1.

Table 10-1 Resettlement Supervision Milestone No. Resettlement Tasks Target Responsible Agency Deadline Status 1. Disclosure 1.1 - Information booklet 1,976 AFs, 11 IA (Dongtai) and ROs Aug 2008 Planned institutions, enterprises & 7 shops 1.2 - Approved RP 2 resident WMG, District Aug 2008 Planned communities Government, and ROs 1.3 - RP posted on ADB website WMG, PMO, IA and ADB Aug 2008 Planned 2. Approval of RP and Budget $31.61 million WMG, District Aug 2008 Planned (Recheck) Government, and ROs 3. Agreements 3.1 - Compensation rates 2 resident WMG, District May 2008 – In process communities Government, WLRB, Mar 12 WHDAO, ROs, RCs, PMO, and IA 3.2 - Households 1,976 AFs PMO, IA, WLRB, WHDAO, Mar 11 – Planned ROs, and RCs Feb 13 3.3 - Institutions, Enterprises & 11 institutions, PMO, IA, WLRB, WHDAO, Mar 11 – Planned Shops enterprises & 7 and ROs Feb 13

No. Resettlement Tasks Target Responsible Agency Deadline Status shops 4. Detailed Plans 3.1 - Community rehabilitation plans 2 resident PMO, IA, DI, and ROs Mar 09 – Planned communities Mar 13 3.2 - Institution, enterprise / shop 4 institutions, 7 PMO, IA, DI, and ROs Mar 09 – Planned relocation & rehabilitation plans enterprises & 7 Mar 13 shops 3.3 - Plan for vulnerable group 351 AFs or 1,004 PMO, IA, WMG, Wuzhou Mar 09 – Planned persons Civil Affairs Mar 13 Bureau/Wuzhou Labor & Social Security Bureau 3.4 - Training Plans for APs All AFs PMO, IA, ROs, training Mar 09 - Planned institutions Mar 13 6. Establishment of PLG, PMO, IA, respective Jul 08 – To be done Implementation Capacity ROs, WLRB, WHDAO, Mar 09 Others 7. Monitoring & Evaluation 7.1 - Baseline survey 1,976 AFs PMO, IA, and DI Jan 08 Completed 7.2 - Set-up internal supervision As per RP PMO and IA Jul-Aug 08 In process 7.3 - Hiring external monitor As per RP WDSAOC Sept-Oct 08 Planned 7.4 - Internal monitoring reports Quarterly PMO, IA, and RO Mar 09 1st Report 7.5 - External monitoring reports Semi-annual IMA Jun 09 1st Report Dec 09 2nd Report 7.6 - Resettlement Completion 1 report IMA As work is Reports completed in Jul 12 7.7 - Evaluation reports 2 annual reports IMA Dec 13 1st Report Dec 14 2nd Report 8. Documentation of Consultation IA, ROs, RCs Ongoing 9. Documentation of Grievances IA, ROs, RCs Ongoing 10. Flow of Funds / Compensation 10.1 - To IA 50% WMG Jan 09 Pending 10.2 - To affected resident “ “ “ IA and ROs Jun 11 – communities Jun 12 10.3 - To affected households “ “ “ IA and ROs Jun 11 – Jun 12 AFs = Affected Families; DI = Design Institutes; IA = Implementation Agencies; IMA= Independent Monitoring Agency; PLG= Project Leading Group; PMO = Project Management Office; RC = Resident Committee; RO = Resettlement Office; Dongtai = Wuzhou Dongtai State Assets Operation Corporation; WHDAO = Wuzhou House Demolishment Administration Agency; WLRB= Wuzhou Land Resource Bureau; and WMG = Wuzhou Municipal Government.

Figure 10-1 RP Planning and Implementation Schedule 2008 2009 2010 2011 2012 2013 2014 Activities 1 2 3 4 5 6 7 8 9 10 11 12 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV Project Procedure Feasibility study preparation and approval Preliminary design and detailed design Preparation of bidding documents Engineering tendering process & signing contract Detailed design of construction map & preparation Civil work construction from commence to completion Testing and putting into operation Planning of Land Acquisition and Resettlement Land use approval for Pingminchong & Zaochong Finalize the scope of LAR Conduct socioeconomic survey Conduct measurement survey of APs Establishment of cut-off date Determine compensation standards and RP Compensation rate deadline Prepare resettlement plan Conduct detailed measurement survey Identify and confirm poor and vulnerable APs Finalize compensation/resettlement strategies Pre-examination of land acquisition Institutional setup and training Permanent Land Acquisition and Resettlement Hold mobilization meetings and publicize policies Announce public notification Negotiate and sign contracts Disburse compensation payment & acquire land Construction of infrastructure & houses at Zaochong House demolition notification Size of housing chosen Allocation of housing unit Decision of payment scheme Relocation timing Final move to the new resettlement site Grievance redress after each stage & agreement Demolition of existing houses after the move to new site Livelihood and Income Restroration Employment of APs in the Project construction Implementation of measures to increase income of APs

2008 2009 2010 2011 2012 2013 2014 Activities 1 2 3 4 5 6 7 8 9 10 11 12 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV New skill training Institution, enterprise and shop rehabilitation Monitoring and Evaluation Establish internal monitoring system & formats Engage monitoring agency Approve TOR by ADB Training of resettlement staff Monitor LAR activities Monitor income restoration programs Conduct external evaluation

XI. INSTITUTIONAL FRAMEWORK

11.1 Project Resettlement Organizational Set-up

The project leading group is established within the WMG with the PMO as the secretariat communicating with the other stakeholders. As previously mentioned, Dongtai is the project Implementation Agency (IA). Under the IA, there is a resettlement office, responsible for land acquisition and resettlement. The organizational structure is shown in Figure 11-1.

The IA will play a key role during the resettlement process. However, besides the IA, there are other related institutions who will be also involved in the resettlement activities. All these institutions and the staffing are presented in Table 11-1.

Table 11-1 Resettlement Institutions involved and Staffing Institutions Staffing Project Leading Group 6 males & 2 females with experience, Government officers, education level above college Wuzhou Project Management Office (PMO) 2 males & 2 females with experience, Government officer, engineering technicians, education level above college Wuzhou Land Resource Bureau (LRB) 8 males & 2 females with experience, Government officer, education level above college Wuzhou House Demolishment Administration Office (HDAO) 8 males & 3 females with experience, Government officer, education level above college Wuzhou Construction and Planning Commission (CPC) 5 males & 3 females with experience, Government officer, education level above college Wanxiu District Government (WDG) 5 males & 5 females with experience, Government officer, education level above college Dongtai/Resettlement Agency 10 males & 10 females with experience, Engineering technicians and management staff, education level above college Pingminchong RO 25 males & 11 females with experience, officers and representatives of APs, education level bovver college RCs 5 males &15 females with experience, community officials Legal Advisory Office 2 female lawyers DI 3 male senior engineering technicians External Monitoring Agency 2 resettlement specialist

Project Leading Group PMO

Wuzhou Wanxiu District Wuzhou LRB Wuzhou CPC Dongtai - IA Legal Advisory Office DI HDAO Government

IMA Engineering Office Resettlement Office Finance Department Administration Office

Pingminchong Resettlement Office

RCs Institutions, Enterprises & Shops

APs

Figure 11-1 Organizational Structure of LAR Implementation

11.2 Responsibilities

Table 11-2 Responsibilities of Agencies Institutions Responsibilities - Lead, organize, coordinate and formulate policies for the project; - Review the implementation of the RPs. - Conduct internal supervision and inspection. PLG - Make decision for major problems during the land acquisition and resettlement process.

- Perform the overall coordination and organize the project activities - Coordinate the preparation and implementation of the LAR program - Organize and coordinate the preparation of RP. PMO - Provide assistance to women and other vulnerable groups. - Serve as a liaison between ADB and IA and various stakeholders

- Apply for Land Use Planning Certificate and Land Use Construction Certificate to LRB. - Apply for house demolition certificate; - Disburse land acquisition and resettlement fund and supervise the usage; - Direct, coordinate and supervise the implementation schedule of the RP; - Organize and implement internal supervision, determine independent external supervision agency, coordinate internal and external monitoring activities; Dongtai - IA - Report the schedule of land acquisition and resettlement, fund usage and implementation status periodically to ADB; - Provide assistance to women and other vulnerable groups. - Coordinate the handling of the conflicts and problems during the resettlement implementation; and - Report the land acquisition and house demolishment to PLG.

- Organize the socioeconomic survey. - Conduct measurement surveys of land acquisition and house demolishment. - Implement the relocation; - Formulate the resettlement implementation schedule; - Sign the land acquisition and house demolishment agreement with the affected households in association with local government. - Supervise the implementation of RP; Resettlement Office - Manage the information of land acquisition and resettlement. (RO) - Provide assistance to women and other vulnerable groups. - Train the resettlement staff. - Coordinate the handling of conflicts and problems during the RP implementation. - Settle the disputes and grievances through coordination and arbitration. - Handle the illegal action during the land acquisition and relocation process. - Report the land acquisition and house demolishment to IA.

- Designate the scope of land used and approve construction activities on land; Wuzhou Construction & - Issue land usage certificate based on plan. Planning Committee

- Implement the relevant national policies of land acquisition. - Participate in the examination of compensation standards for land acquisition and ground attachments. - Process and approve land acquisition. WLRB - Participate in measurement and socioeconomic surveys. - Participate in the preparation of Resettlement Plans. - Issue Land Use Planning Certificate and Land Use Construction Certificate. - Issue Public Notice of Land Acquisition.

Institutions Responsibilities - Guide, coordinate, and supervise the implementation activities of land acquisition and resettlement. - Coordinate the handling of conflicts and problems during the RP implementation.

- Carry out and implement the regulations and policies related to house demolition. - Review the relevant documents of house demolition plan and resettlement and compensation plan, issue the house demolition certificate. - Register and manage house relocation file; WHDAO - Coordinate, supervise and inspect the house demolition activities and handle conflicts during demolition. - Cooperate with the respective Resettlement Office (RO) to train and examine the resettlement officers.

Legal Advisory Office - Provide legal consultancy during project implementation. - Provide legal assistance in case there is dispute during house demolishment and resettlement. - Assist the measurement and socioeconomic surveys - Assist the preparation of resettlement plans; District Government - Supervise RCs to implement resettlement plan and rehabilitation plan

- Participate in measurement and socioeconomic surveys and formulation of the resettlement and rehabilitation plan. - Participate in the preparation of the RP. - Organize the public consultation; and publicize policies of land acquisition and resettlement. - Consult the compensation payment and distribution. RCs - Organize the production and income restoration activities in resident communities and villages. - Organization the development of secondary and tertiary industries. - Report comments and suggestions of APs to the organizations at upper level - Provide assistance to women and other vulnerable groups.

- Minimize the project impacts through optimizing engineering design. - Identify the scope of land acquisition and resettlement impacts. - Conduct measurement survey and socioeconomic surveys. DI - Assist to prepare the Resettlement Plan. - Provide technical consulting of data collection and processing to the respective municipal PMO and IA.

- Provide technical consulting of land acquisition and resettlement. - Act as an IMA, provide periodic monitoring for the implementation of the Independent Monitoring resettlement plan, and provide independent evaluation report to the municipal PMO, Agency (IMA) IA, RO, and ADB.

11.3 Institutional Capacity Strengthening

11.3.1 Assessment of Institutional Capacity

11.3.1.1 Logistics and Hardware

Currently there is a resettlement office under Dongtai, which is equipped with a few computers. There is a need for additional hardware facilities in the office. In order to ensure the smooth implementation of LAR, Pingminchong Resettlement Office in Dongtai will be established. The

ROs will be facilitated with office facilities, transportation vehicles and communication facilities, mainly including air-conditioner, chairs and tables, computer, printer, telephone set, fax machine, vehicle and some other office necessities. As for the vehicle, a 12-seat van will be leased by Dongtai, the expenditure of the RP will be included in the office expenses. The relevant expenditures for hardware facilities for the ROs are budgeted at CNY 50,000.

11.3.1.2 Financing

It is foreseen that IA can conduct the resettlement tasks more efficiently after the project FSR has been approved and budget has been allocated. During the PPTA stage, all budget spent were pre-paid by IA as well as EA. The lack of financing resources during project preparation stage has definitely hindered the institutional set-up and the preparation progress (including FSR and RP preparation) irrespective of the staff’s capabilities. The RP has considered this issue and adequate management fund for RP implementation has been budgeted in the resettlement budget.

11.3.1.3 Staff Capabilities

During the PPTA stage, the Consultants found that many government officials have rich experiences in dealing with land acquisition and resettlement issues. However, almost nobody has resettlement experience of working in ADB financed projects, and none of them has attended training on ADB involuntary resettlement policies before the Project. Therefore, a systematic training on Involuntary Resettlement will be necessary.

11.3.2 Institutional Capacity Building and Training

The ADB will provide support to train staff on resettlement procedures. A part of the ADB loan for implementation will be provided for institutional capacity building through specific training courses and on the job training with the appointed IMA. The training includes the principals and policies of resettlement, construction planning management, planning and design, management on LAR implementation processes, financial management, quality control, supervision and estimation and project management.

In order to promote the capability and working efficiency of resettlement staff, training will be provided to them. Based on the real situation, the requirements are as follows:

- Training venue will be selected outside of Wuzhou City, preferably those cities which have ADB projects with successful resettlement experiences so that trainees can learn their experiences from investigations or study tours.

- Trainees should be those who will be seconded to the Project to undertake resettlement tasks, and those resettlement officials who participated in the RP discussions with PPTA Resettlement Consultant must participate.

- Training is planned between May and August, 2008.

XII. MONITORING, EVALUATION AND REPORTING

The PMO and IA will regularly monitor and evaluate the implementation of land acquisition and resettlement activities in order to ensure resettlement work is implemented successfully in accordance with the RP, and to achieve the target of appropriate livelihood restoration for APs. The monitoring will comprise two components: internal monitoring and external monitoring. Internal monitoring will be mainly conducted by IA and ROs and will be overseen by the project leading group and PMO to ensure that organizations involved in implementation of land acquisition and resettlement work comply with the principles and schedules of the Resettlement Plan (RP).

The aim of internal monitoring is to encourage the concerned organizations to carry out good performance while the external monitoring and evaluation will be conducted by an independent agency periodically on the activities of land acquisition, demolition and resettlement.

The scope of monitoring on resettlement will cover data collection, analysis, and the reporting of progress for an internal monitoring while the external monitor will check progress but their main role is to evaluate quality and results of resettlement.

Resettlement monitoring will focus on the following two aspects:

- Progress of disbursement and provision of entitlements to APs. - Compared of APs and RCs, institutions, enterprises and shops pre and post resettlement socioeconomic situation, particularly livelihood restoration. Background socioeconomic data collected during the inventory and census surveys will be used in this assessment.

12.1 Internal Monitoring

Internal monitoring will be undertaken by the PMO, Wuzhou Land Administration Bureau, Wuzhou House Demolishment Administration Office, and IA and ROs, to assure the concerned departments to comply with the RP. Internal monitoring and evaluation aims to ensure good performance during the resettlement process.

12.1.1 Objectives of Internal Monitoring

The executive agency will take major responsibility of internal monitoring, covering the activities of affected people, entitlement, advice, grievance, problems, efficiency, timing, and budget, etc.

- Disbursement of entitlements to AP: compensation, housing, and employment, and necessary assistance as specified in the RP.

- Social adaptability and cohesion: impacts with a gender perspective on APs and vulnerable groups, public participation, non-government’s role, AP’s attitudes and opinions after resettlement, number of complaints and appeal procedures, implementation of preferential policies and income restoration measures, and improvements in women’s status.

- Timing of house demolition and restoration: provision of residential and non- residential houses, disbursement of compensation for house replacement costs, and

reconstruction of adequate housing and updating of resettlement schedule and resettlement budget where required.

- Rehabilitation of community facilities and services: Timely rehabilitation of community facilities and services and ensuring that mitigation measures to minimize impacts are implemented.

- Public participation and consultation: Involvement of AP in resettlement implementation as per the public consultation plan outlined in the RP. Review of grievance register and responses to complaints.

- Assistance to vulnerable groups.

It is anticipated that internal monitoring reports will be brief documents reporting on progress to date and identification of issues, how issues were resolved, consultations undertaken, and revisions of the resettlement schedule and disbursement of budget where required.

12.2 External Monitoring and Evaluation

Required by ADB, the PMO will appoint an independent monitoring agency (IMA) to carry out the external monitoring and evaluation on resettlement. The independent agency should have good reputation and successful experience and fully understand ADB’s policy and requirements on resettlement. The PMO will sign a contract with this agency. The terms of reference (TOR) for the independent evaluator are listed in Appendix 3.

12.2.1 Objectives and Requirements of M&E

Objectives The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

z Economic situation prior to and after displacement of land or housing; z Timely disbursement of funds; z Environmental conditions; z Social adaptability after resettlement; z Rehabilitation of the vulnerable groups; z Measures taken to restore affected production and livelihoods of the APs, institutions, enterprises and shops; and, z Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project areas.

Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwords. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IA, local officials, resident community leaders, management staff of institutions and enterprises, and owners of shops, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, other vulnerable groups and unemployed workers.

Monitoring Indicators The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

z Disbursement of entitlements to affected households and institutions, enterprises and shops: compensation, housing, employment, and necessary assistances as specified in the RP. z Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed. z Provision of alternative housing: the affected persons must move into their alternative housing at least one month before the relocation; the compensation for construction of houses should be equivalent to the replacement cost; the affected persons must receive on time their entitlements regarding relocation allowance. z Restoration of basic infrastructure and special facilities: all necessary infrastructure and special facilities should be restored at the resettlement sites at least up to a standard equal to the standard at the original location; the compensation for all infrastructure and special facilities should be sufficient to reconstruct it to the same quality. z Level of AP’s satisfaction: level of APs’ satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored. z Standard of living: Throughout the implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation. z Reemployment of affected staff and workers, and compensation of lost wages. z Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

Special Considerations Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

z The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluating unit will also provide recommendations and assistance to the EA in respect of women’s issues. z Care and attention to vulnerable groups: Closely monitor living conditions of the poor, elders, the handicapped, and other vulnerable groups after resettlement, to ensure that no hardship is experienced. z Monitoring and evaluating will provide information on utilization and adequacy of resettlement funds. The Wuzhou Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

12.2.2 Methodology

The methodology of external monitoring and evaluation are listed as follows:

- Independent agency will conduct baseline survey on the affected area and acquire the baseline data of APs. The investigation about production and AP’s living conditions will be made every year to measure the change. Sample trace investigation of affected households, institutions, enterprises and shops will be adopted. Irregular interview or site visits will be made to acquire sufficient data for evaluation.

- Conduct group discussion and consultation with various groups of people from government, non-government, community and affected people.

- Interview with key persons such as local RC leaders, management staff of institutions and enterprises, and owners of shops regarding resettlement implementation.

- Community public meetings to collect various information on resettlement.

- Make direct observation regarding progress of demolition and replacement and visit the individual or groups.

- Informal investigation or interview by non-sampling means such as with the affected people, employees and staff engaged with resettlement.

12.2.3 Major Tasks

The IMA will monitor and evaluate the resettlement relative with the project and consolidate their findings and assessment into a report to ADB, EA, IA and other concerned departments. These reports can be helpful in the policy-making by concerned department. The affected people and non-government organizations and communities will participate in the evaluation activities.

External monitoring and evaluation will cover the quality assessment on following the aspects:

- Adequacy of compensation and timelines of payment;

- House demolition and resettlement of APs;

- Situation of house and living environment pre and post resettlement; bear in mind with a gender perspective;

- Livelihood restoration of APs;

- Operation and efficiency of the resettlement institutions.

12.3 Reporting Requirements

Internal monitoring reports will be submitted quarterly by project IA to the EA and EA will submit it in the progress report to ADB. The external M&E reports will be submitted directly to EA and ADB simultaneously every six months by the IMA. The external evaluation reports will be

continued once every six months until the completion of the resettlement, and then the annual evaluation reports will also be prepared by the external monitor once every 12 months until Project completion. Finally, after project completion, the EA will prepare a resettlement completion report and submit to ADB.

APPENDIX 1 RESETTLEMENT INFORMATION BOOKLET

1. Introduction

Pingminchong is located in Wanxiu District of Wuzhou City, which is one of the 12 geohazard disaster prone areas in Wuzhou City. Each time, the occurrence of geohazard disaster resulted in human casualties and tremendous economic losses to the Pingminchong community. Due to the historical reasons, many houses were built on the slopes with high density of populations and houses. The houses are closely built and attached, it is difficult to carry out the unified infrastructure reconstruction. To eliminate the impact of geological hazard, the Wuzhou Municipal Government (WMG) has planned to remove the people in Pingminchong to a new resettlement site in Zaochong area and other gaohazard free areas of the city to provide the people with safer and more secured living environment, and to rehabilitate the Pingminchong valley for sale through public bidding auction.

2. Impacts of Land Acquisition and Resettlement

The construction of the Project will acquire 289 mu state-owned land in Pingminchong valley permanently with two resident committees (RCs) of Pingdong and Pingxi to be affected. It will also demolish residential and non-residential structures as well as ground attachments and basic infrastructures and facilities. Table 1 provides the summary of land acquisition and resettlement. Table 2 provides the impacts of the residential structure demolishment and affected auxiliaries of individual households living in private houses, Table 3 the impacts of non- residential structure demolishment of the affected institutions and enterprises, Table 4 the affected shops, Table 5 the area of structure demolishment and the number of affected households and populations by structure demolishment, Table 6 the profile and housing condition of affected vulnerable groups, and Table 7 the impacts of affected ground attachments, basic infrastructures and special facilities

Table 1 Summary Land Acquisition and Resettlement Impacts Permanent Land Residential Structure of Private Structure of Institutions, Enterprises and Administrative Jurisdiction Total Area Acquisition Houses1 Shops 2 Total of Institutions Enterprises Shops Affected Total Area t Structure Total Area f Total Area (No.) (No.) (No.) Popu. Total Area Of which Total Area Affected o Be APs Demolish- District Street RCs 2 APs (No.) or Living for Business (mu) Farmland (mu) (m ) HHs (No.) Demolished (No.) (No.) 2 (m2) (m2) ment (m ) (m2) Pingdong Wanxiu Pingminlu & Pingxi 289.00 0.00 130,851 1,816 5,707 5,845 13,565 19,410 1,116 5 6 7 6,823 150,261

Total 289.00 0.00 130,851 1,816 5,707 5,845 13,565 19,410 1,116 5 6 7 6,823 150,261 Note: 1 The number of affected households and APs include 1,816 private households and 5,707 persons. Of which 7 family owned shops with 15 family members as employees and 35 teachers and 117 students in Pingminlu Primary School are accounted in. 2 In total, 11 institutions and enterprises (5 institutions including 2 schools, 2 state-owned enterprises, 3 collective-owned enterprises, and 1 private-owned enterprise) will be relocated. For the non-residential structure demolishment of institutions and enterprises, 160 employee households or 458 persons living under the administration of public institutions and enterprises and 358 employees living in the dormitories of the affected institutions and enterprises (Wuzhou S&T School, Baiyun Social Welfare Residence, and Pingxi Community Office) will be relocated. In addition, additional 152 are employees working in the affected enterprises (Baiyun Social Welfare Residence, Baiyun Palm Brush Factory, Baiyun Paper Box Making Factory, and Liyanxun Enterprise) and 148 are teachers and students in Pingminlu Primary School but living outside of Pingminchong valley will also be affected.

Table 2 Demolishment of Residential Structure for Individual Households Living in Private Houses and Associated Auxiliaries Community in Pingminchong Valley Item Unit Pingdong Pingxi Total Affected Households and Populations Living in Private Houses Relocated Households No. 1,152 664 1,816 Relocated Populations No. 3,579 2,128 5,707 Total Area of Residential Structure to Be Demolished Frame m2 15,070.2 11,100.0 26,170.2 Brick -Concrete m2 61,505.0 30,090.7 91,595.7 Brick-Wood m2 6,214.8 6,870.3 13,085.1 Subtotal m2 82,790.0 48,061.0 130,851.0 Status of Houses with Property Rights Households No. 1,101 644 1,745 With Property Rights Area of Structures m2 78,790 47,261 126,051 Households No. 51 20 71 Without Property Rights Area of Structures m2 4,000 800 4,800 Status of House Use Households No. 1,000 600 1,600 Used by the House Owners Themselves Area of Structures m2 68,000 42,500 110,500 Households No. 152 64 216 Rented to Tenants Area of Structures m2 14,790 5,561 20,351 Associated Auxiliaries Kitchen No. 880 6,006 6,886 Toilet No. 702 530 1,232 Balcony No. 750 560 1,310 Water Meter Set 800 707 1,507 Electric Meter Set 820 680 1,500 Coal Gas Set 700 516 1,216 Telephone No. 750 500 1,250 Cable TV Households 762 590 1,352

Table 3 Non-Residential Structure Demolishment of the Affected Institutions and Enterprises 2 Structures to Be Demolished (m ) Affected HHs and APs (No.) Production Equipments Name of Institutions & Nature Value to Be Enterprises Brick- Total Frame Brick-Wood Simple HHs APs M F (CNY10,000 Relocated Concrete /Yr) Teaching instruments Pingminlu Primary School 1 3,250 2,600 650 - 148 79 69 N/A & equipments Teaching instruments Wuzhou S&T School 2 3,585 2,933 652 - 300 186 114 N/A State-Owned & equipments Institutions Cangwu Real Estate Bureau 250 250 18 45 25 20 N/A Wuzhou Real Estate Bureau 3,025 500 2,525 103 308 176 132 N/A Environment & Sanitation 670 670 15 45 20 25 N/A Bureau Subtotal 10,780 6,033 4,747 136 846 486 360 Baiyun Social Welfare 600 600 - 60 26 34 N/A State-Owned Enterprise Residence 3 Wuzhou Postal Office 4 250 250 24 60 32 28 N/A Subtotal 850 850 24 120 58 62 Pingxi Community Office 250 250 - 10 5 5 N/A Electric box, Collective- Baiyun Palm Brush Factory 5 2,030 1,530 500 - 45 25 20 600 Owned Enterprises transformer, etc. Baiyun Paper Box Making One production line of 1,260 540 720 - 30 17 13 800 Factory 5 paper box making Subtotal 3,540 2,070 250 1,220 24 85 47 38 Private-Owned Liyanxun Enterprise1 3,940 3,006 300 634 - 65 35 30 750 5 sets of machines Enterprise Subtotal 3,940 3,006 300 634 - 65 35 30 750

TOTAL 19,110 8,953 8,003 1,520 634 160 1,116 626 490 750 Note: 1 In total, 300 teachers and students will be affected. Of which 148 teachers and students are living in the school. 2 The number of affected teachers and students is living and studying in Wuzhou S&T School. 3 Of the total affected 60 persons, 48 persons (21 males and 27 females) are living in the residence and 12 persons (5 males and 7 females) are employees who are living outside the residence. 4 In Wuzhou Postal Office building, all are households living there. 5 Now the enterprise has been closed. 5 IBID.

Table 4 Non-Residential Structure Demolishment of the Affected Shops Status of Status of Structure Employees Equipments Nature of Owner- Type of Name of Owner Property Business Demolition (No.) to Be Shops ship Structure Rights License (m2) M F Relocated Huang Tianqiu Grocery Private Yes Yes Frame 30 1 1 Refrigerator Meng Jingbo Grocery Private Yes Yes Frame 30 1 1 Refrigerator Peng Jinhuo Grocery Private Yes Yes Frame 30 1 1 Refrigerator Meng Yanping Grocery Private Yes Yes Brick-Wood 18 1 1 Refrigerator Li Fengmei Grocery Private Yes Yes Brick-Concrete 82 1 2 Refrigerator Huang Zhiqiang Grocery Private Yes Yes Brick-Concrete 50 1 1 Refrigerator Beauty & Hair Su Hong Private Yes No Brick-Concrete 60 2 Air-Conditioner Dressing Total 300 6 9 Note: The number of the affected owners and employees is included in the number of affected households and APs of residential structure demolishment. The 7 households use part of their residential unit as shops.

Table 5 Area of Structure Demolishment and Number of Affected Households and Population Type of Structure Demolishment RCs/Institutions & Enterprises Ownership Area (m2) Affected HHs (No.) APs (No.) Residential Structure Demolishment with Households Living in Private Houses Total Area 48,061 664 2,128 < 10 0 0 10 ~ 20 0 0 20 ~ 30 5 20 Pingxi RC Range of 30 ~ 40 6 21 Area 40 ~ 50 285 805 50 ~ 60 250 860 60 ~ 70 80 300 70 ~ 80 38 116 Total Area 82,790 1,152 3,579 < 10 0 0 Private Houses 10 ~ 20 0 0 20 ~ 30 10 40 30 ~ 40 37 106 40 ~ 50 240 819 Pingdong RC Range of 50 ~ 60 260 780 Area 60 ~ 70 200 691 70 ~ 80 200 550 80 ~ 100 50 170 100 ~ 120 45 130 120 ~ 140 50 115 > 140 60 178 Subtotal 130,851 1,816 5,707 Non-Residential Structure Demolishment of Public Institutions and Enterprises Pingminlu Primary School 1 3,250 148 Wuzhou S&T School 2 3,585 300 Total Area 250 18 45 Cangwu House Range of Admin. Office 2 10 ~ 20 18 45 Area Public Institutions Total Area 3,025 103 308 Wuzhou Real Range of Estate Bureau 2 20 ~ 50 103 308 Area Total Area 670 15 45 Environment & Range of 10 ~ 20 5 10 Sanitation Office 2 Area 20 ~ 50 10 35 Subtotal 10,780 136 846

Type of Structure Demolishment RCs/Institutions & Enterprises Ownership Area (m2) Affected HHs (No.) APs (No.) Baiyun Social Welfare Residence 3 600 - 60 State-Owned Total Area 250 24 60 Wuzhou Postal Enterprises Range of Office 2 10 ~ 20 24 60 Area Subtotal 850 24 120 Pingxi Community Office 2 250 - 10 Collective-Owned Baiyun Palm Brush Factory 4 2,030 - 45 Enterprises Baiyun Paper Box Making Factory 4 1,260 - 30 Subtotal 3,540 85 Private-Owned Liyanxun Enterprise 4 3,940 - 65 Enterprise Subtotal 3,940 65 Family-Owned Shops 5 300 - 0 Subtotal 300 - 0

TOTAL 150,261 1,976 6,823 Note: 1 A total of 300 teachers and students will be affected by non-structure demolishment. Of the total, only 35 teachers and 117 students who are living in Pingmingchong valley are accounted in the number of APs to be affected by residential structure demolishment of individual households in private houses. 2 The APs are living in Pingmingchong valley. 3 The demolishment of Baiyun Social Welfare Residence will affect 60 persons. Of which 48 persons are living in the residence, and 12 persons are living outside of the residence. 4 The APs are living outside of Pingminchong Area. 5 The number of APs are included in the number of APs to be affected by residential structure demolishment.

Table 6 Profile and Housing Condition of Affected Vulnerable Groups Households Households Households Women-Headed with Small with “Five Living under Disabled Total Household Residential Gurantees”1 MLG2 Area3 Affected Households and Populations Living in Private Houses (No.) Households 19 32 36 103 161 351 Populations 46 102 78 322 456 1,004 Residential Structure (m2) Frame 10 10 Brick-concrete 4 12 6 52 28 102 Brick-wood 15 20 30 41 133 239 Ranges of Structure Area (No. of Households) < 50 m2 161 161 50 m2 – 60 m2 10 30 29 20 89 60 m2 – 70 m2 9 2 7 73 91 70 m2 – 80 m2 10 10 80 m2 – 100 m2 0 > 100 m2 0 Income Mini-bus driver, safeguard, factory worker, hotel and MLG Sources restaurant servant Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/Promises; 2 Households living under MLG are classified as urban poor households; and, 3 Households with small residential area (Only one house in the city with structure less than 49 m2, only apply to house owner).

Table 7 Affected Ground Attachments, Basic Infrastructures and Special Facilities Item Unit Specification Mapping No. Quantity Public toilet m2 1,050 10KV power pole No. 10 380V power pole No. 26 Transformer (KA) No. 3 Water culvert (concrete) m2 0.5*1.0 3,000 Water culvert (slurry) m2 0.5*0.5 4,225 Water culvert (mud) m2 0.2*0.2 500 Gravel road m2 15,000 Water supply pipe（diameter mm） m DN200 500 Water supply pipe（diameter mm） m DN100 1,550 Water supply pipe（diameter mm） m DN80 80 Water supply pipe（diameter mm） m DN70 80 Water supply pipe（diameter mm） m DN65 290 Water supply pipe（diameter mm） m DN50 3,030 Water supply pipe（diameter mm） set DN25 meter 400 Water supply pipe（diameter mm） set DN20 meter 1,000 Drainage pipe（diameter mm） set DN15 meter 400 m GYTS-12B1 J259 500 Telecommunication cable m GYTS-8B1 J258 3,900 Overhead 24 core Cable TV optical fiber cable line km 5.1 and 12 core Artery optical fiber cable (main line) km Overhead 26.5 Connection of Cable TV distribution networks HH 1,106 distribution networks Power cable m2 35 250 Young regular tree (10-30 cm) No. 100 Matured regular tree (over 30 cm) No. 20 Scattered fruit tree (1 year) No. 15 Scattered fruit tree (2 years) No. 18 Scattered fruit tree (3 years) No. 11 Scattered fruit tree (above 5 years) No. 20 Old structure m2 149,961

3. APPEALS AND GRIEVANCE PROCEDURES

APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The basic grievance procedures include the following steps.

Stage 1: If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the resident committee or in oral or in written form. If an oral appeal is made, the resident committee will record it on paper and process it. Resident committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2: If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision; the district government

office will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 3: If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Wuzhou Project Management Office (WPMO) or Wuzhou Land Resource Bureau (WLRB) or Wuzhou House Demolishment Administration Office (WHDAO) after receiving the decision. The Wuzhou City PMO or WLRB or WHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4: If the aggrieved AP is still unsatisfied with the decision of the WPMO or WLRB or WHDAO, he/she will appeal to the Provincial LRB or HDAO after receiving the decision. The Provincial LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 5: If the AP is still dissatisfied with the decision of the Provincial LRB or HDAO, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision of from Provincial LRB or HDAO. The AP will be informed of the result via written notice. . The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

4. LEGAL FRAMEWORK AND POLICIES

The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. The land acquisition, demolition and resettlement of this project will be complying with the laws and regulations of PRC, local government and ADB:

¾ Land Administration Law of the PRC, amended in 2004; ¾ Management Law of Urban Real Estate of PRC, 1994; ¾ Urban Housing Demolition Management Regulations of the PRC issued in 2001; ¾ Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003; ¾ Guidelines for Valuation on Urban House Demolishment of PRC; 2004; ¾ Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region; ¾ ADB’s Involuntary Resettlement Policy, 1995; ¾ Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; ¾ Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and, ¾ OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006. 4.1 Eligibility and Principles of Compensation

The Project affected persons (APs) who are entitled to receive compensation refer to

the persons affected by the involuntary taking of land resulting in (i) relocation or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location. All landowners and users and occupants of houses in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities as well as the cut-off date determined by Wuzhou Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or houses built after the cut-off date determined by the local government will not be compensated as mentioned in last paragraph.

The principle of the compensation and entitlements established for the Project are as follows: (i) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre project standard of living, with the prospect of improvement; (ii) All the APs, with and without certificates, are to be taken into consideration and accounted for; (iii) Compensation should not be paid to those people who occupy land or construct structures and auxiliaries in the project area after cut-off date determined by the local government; (iv) Adequate compensation should be provided to the APs timely; (v) Where land allocation per-capita is not sufficient to maintain the previous livelihood standards, other income generating activities will be provided for; (vi) A preferential policy will be provided to vulnerable groups in such things as compensation, housing assignment, transfer and employment; (vii) All the APs will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans and project timing; and (vi) Close monitoring and timely actions will be carried out to identify and resolve any problems.

4.2 Compensation Standards and Entitlements

Compensation for land acquisition, and residential house (private houses and houses and buildings of public institutions and enterprises) and non-residential house (institution, enterprise and shop) demolishment will be paid to all users with or without legal certificates, including APs settled on the land and they are included in the final AP list or are able to prove their occupation of affected plots before the cut- off date determined by WMG. The payment will be made in the forms of “cash” and “replacement house at property right exchange” according to the class and type of land and dwellings. The relocated households will also receive a relocation allowance. Compensation for standing crops, auxiliaries and other assets, basic infrastructures and facilities will also be paid directly to the affected owners. Any income loss from production/sales and wages will be paid in cash to the APs. The loss of institutions, enterprises and shops will also be compensated in cash. Table 8 presents the eligibility, compensation rates and entitlements.

Table 8 Entitlement Matrix Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible Permanent Pingminchong Permanent loss of state land. In Land Reserve Center of WMG The permanent acquisition of state-owned construction land does z PMO, IA, and land total, 289 mu of state-owned not need to pay, which will be re-developed for sale through open ROs acquisition land, including 44.3 mu wood bid auction by Land Reserve Center of MWG. The compensation land, 200.39 mu house plot, standard for the construction land in Zaochong is CNY 400,000/mu, 2.68 mu motor road, and 41.6 and the land compensation for the loss of land will be paid to the mu other lands. Wuzhou Land Administration Bureau directly.

Zaochong 100 mu of state-owned WLRB Compensation will be paid to WLRB in cash at the compensation z WMG, Dongtai, construction land rate of CNY320,000/mu and ROs

Residential structures (1,816 With structures built thereon. Households All affected APs will be provided with compensation fee z Cash compensation for affected residential structures at full z PMO, Dongtai, urban households or 5,707 136,696 m2 residential (71 household or replacement house in planned Zaochong replacement cost of materials and labor with no deduction for ROs, WLRB, persons living in private structures in total, including without house resettlement site and other geohazard free communities depreciation or salvageable materials. The compensation WHDAO, Wanxiu houses under jurisdiction of 28,320 m2 frame, 95,286 m2 certificates) of the city at APs’ preference. standards are: CNY1,200/m2 for frame structure, CNY1,000/ m2 District RCs of Pingdong and Pingxi brick-concrete, and 13,090 m2 brick-concrete, and CNY750/ m2 for brick-wood Government, and brick-wood Cash compensation or replacement house at exchange RCs of property rights will be provided to the APs z Replacement houses of equivalent size at property exchange will 4,800 m2 residential structures be provided in Zaochong resettlement site. without house certificates All users with or without legal house certificate papers including AP settled on the land after after 29/08/98 z House without property right certificates will be legitimized after (Land Law) as long as they are included in the final AP relocation into replacement houses in Zaochong Resettlement list or are able to prove their occupation of affected plots Area. before the cut-off date determined by WMG. z The salvageable materials will be provided to the APs to sale tto Relocation allowance in cash will be provided to the recycling stations for earning some money APs z Relocation allowance will be paid to the APs in cash at CNY5/m2. as regulated by WMG.

20,351 m2 residential structures Tenants (216 All tenants have the right to extend the lease or obtain z The affected tenants will get resettlement allowance in cash at z PMO, Dongtai, are rented to tenants HHs) equivalent compensation. The terms of the extension CNY5/m2 as regulated by WMG. ROs, WLRB, contract are the same as the previous one. WHDAO, Wanxiu District Government, and RCs

Auxiliaries 6,886 kitchens, 1,232 toilets, The APs will be provided cash compensation at replacement value. z Cash compensation will be paid to APs: CNY5,000/each for z PMO, Dongtai, 1,310 balconies, 1,507 sets of kitchen, CNY1,000/each for balcony, CNY300/each for coal gas, ROs, Wanxiu water meters, 1,500 sets of CNY150/each for telephone, CNY800/each for toilet, CNY160/hh District electric meters, 1,216 sets of for cable TV network Government, and coal gas, 1,250 telephones, z Water meters and electric meters will be installed in the RCs

Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible 1,352 households cable TV resettlement site for the household equivalent to the same networks quantity before resettlement. Non-residential structures of With structures built thereon. Affected Cash compensation will be provided to the affected z Cash compensation for affected non-residential structures at full z PMO, Dongtai, 11 institutions and 19,410 m2, including 9,043 m2 owners owners replacement cost of materials and labor with no deduction for ROs, WHDAO, enterprises (including 5 frame structures, 8,195 m2 depreciation or salvageable materials. The compensation Wanxiu District state-owned institutions, 2 brick-concrete structures and All users with or without legal house certificate papers standards are: CNY1,200/m2 for frame structure, CNY1,000/ m2 Government, and state-owned enterprises, 3 1,538 m2 brick-wood structures, including AP settled on the land as long as they are brick-concrete, CNY750/ m2 for brick-wood, and CNY550/m2 for RCs collective enterprises and 1 and 634 m2 simple structure included in the final AP list or are able to prove their simple structure private enterprise) and 7 occupation of affected plots before the cut-off date. The private shops. A total of 160 cut-off date will be determined by WMG z Relocation allowance of CNY 1,500 at average will be provided employee households or 458 to each affected institution, enterprise, and shop for the loss of people living under production and business stoppage as regulated by WMG administration of 3 public institutions and 1 enterprise, Relocation allowance will be paid to the APs in cash at CNY5/m2.for 358 persons living in the those who are living in Pingminchong area as regulated by WMG dormitories of 1 school and 2 enterprises. Additional 152 152 employees working in 4 Affected e Salary loss will be paid to the affected employees for z Relocation allowance of CNY 525 in total will be provided to z PMO, Dongtai, employees in 4 enterprises enterprises but not living in employees loss of 15 working days during production/business each affected employee for the loss of working days (Based on a ROs, WHDAO, and 35 teachers and 117 Pingminchong area will be stoppage total of 15 days to be lost for each employee with daily salary at Wanxiu District students in the affected affected. All employees will be CNY35/capita Government, and Pingminchong Primary compensated in cash for the RCs School, and 15 employees in loss of salary. affected shops will be 148 teachers and students in Affected Loss of working days and school days will be paid to the z Relocation allowance of CNY 525 in total will be provided to affected. the affected Pingminlu Primary teachers and affected teachers and students during the stoppage of each affected teacher for the loss of working days and school School but not living there will students school days, respectively (Based on a total of 15 days to be lost for be affected. Cash compensation each person with daily cost at CNY35/capita as regulated by will be paid to them for the loss WMG. The school will be moved during the time of summer of working days and school vacation, therefore students will not lose any learning time. days

15 employees in 7 family-owned Affected Salary loss will be paid to the affected employees for z Relocation allowance of CNY 525 in total will be provided to shops will be affected (The employees loss of 15 working days during business stoppage each affected employees for the loss of working days (Based on number of APs is included in a total of 15 days to be lost for each person with daily cost at residential structure CNY35/capita as regulated by MWG. demolishment) Ground attachments, Ground attachments to be Owners z Cash compensation for ground attachments will be paid to z PMO, Dongtai, including basic affected: 1,050 m2 toilets, 10 affected owners: CNY800/m2 for toilet, CNY2,500/each for 10KV ROs, Wanxiu infrastructures and special 10KV electric poles, 26 380V electric poles, CNY2,000/each for 380V electric poles, District facilities electric poles, 3 transformers, CNY150,000/each for transformers, CNY150/m m2 for concrete Government, and 3,000 m2 concrete water culvert, water culvert, CNY120/ m2 for slurry water culvert, CNY80/m2 for RCs 4,225 m2 slurry water culvert, mud water culvert, CNY100/m for gravel road, CNY600/m for 500 m2 mud water culvert, DN200 water supply pipe, CNY300/m for DN100 water supply

Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible 15,000 m gravel road, 500 m pipe, CNY240/m for DN80 water supply pipe, CNY210/m DN70 DN200 water supplypipe, 1,550 water supply pipe, CNY200/m DN65 water supply pipe, m DN100 water supply pipe, 80 CNY150/m for DN50 water supply pipe, CNY800/set for DN25 m DN80 water supply pipe, 80 water meters, CNY800/set for DN20 water meters, CNY800/set m DN70 water supply pipe, 290 for DN15 water meters, CNY146/m for GYTS-12B1 m DN65 water supply pipe, telecommunication cable, CNY38.47/m for GYTS-8B1 3,030 m DN50 water supply telecommunication, CNY30,000/ km for overhead 24 core and 12 pipe, 400 set DN25 water core cable TV optical fiber cable line, CNY20,000/km for meters, 1,000 sets DN20 water overhead artery optical fiber cable (main line), CNY100/hh for meters, 400 set DN15 water cable TV distribution networks, CNY3,000/m for power cable, meters, 500 m GYTS-12B1 CNY100/each for scattered fruit tree, CNY50/each for regular telecommunication cable, 3,900 small tree (10-30 cm), CNY100/each for matured regular tree m GYTS-8B1 (over 30 cm), CNY60/m2 for old structure. telecommunication, 5.1 km overhead 24 core and 12 core All infrastructures and facilities will be reconstructed by relevant cable TV optical fiber cable line, department after receiving compensation payment 26.5 km overhead artery optical fiber cable (main line), 1,106 cable TV distribution networks, 250 m power cable, 100 young regular tree (10-30 cm), 20 matured regular tree (over 30 cm), 15 scattered fruit tree (1 year), 18 scattered fruit tree (2 years), 11 scattered fruit tree (3 years), 20 scattered fruit tree (above 5 years), 1,49,961 m2 old structure.

5. RESETTLEMENT AND REHABILITATION PLAN

The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: i) compensation should be paid in cash or physical replacement; ii) development resettlement is promoted. The livelihood rehabilitation plan will be based on the provision of: a) various employment and income generation opportunities during the Project construction and operation phases; b) development of self-employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment and catering services); c) provision of technical training to the APs to increase their skills to be employed in other institutions, enterprises and businesses; iii) implement the resettlement program properly, comply with related compensation policies, and ensure that the production and living conditions of the affected people are increased or at least restored; iv) the resettlement plan should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration; v) the APs should be consulted for the development of the resettlement plan and for the compensation rates; and vi) women’s rights and interests should be fully taken into consideration of the Project.

For residential houses and non-residential (institutions, enterprises and shops) houses to be demolished, compensation will be paid to owners, including those without house certificates. The payment will be made in cash according to the appraised value of the property. The households, institutions, enterprises and shops that have to relocate will also receive a relocation allowance. Compensation for standing crops, auxiliaries and other assets will also be paid directly to the APs. Income losses resulting from reduced production /sales and wages caused by the Project will be compensated in cash. The resettlement strategy encompasses (i) the replacement of housing, and (ii) the restoration of livelihoods and income. For people losing housing, there are two resettlement options – i) to receive cash compensation and/or ii) replacement house at property rights exchange. The project management office (PMO), implementing Agency (IA), Resettlement Offices (ROs), and local governments will provide necessary assistance for relocation during resettlement implementation.

The measures for economic rehabilitation include: (i) provision of employment opportunities during the project construction and operational phases; (ii) non- agricultural production, including development of self-employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment and catering services); and (iii) provision of technical training to the APs to increase their skills to be employed in other institutions, enterprises and businesses. Relocated institutions, enterprises and shops will be provided with the options of compensation and resettlement. The same institutions, enterprises and shops will reemploy the affected employees, and no job loss is expected. For vulnerable groups, attention and assistance will be given to their special needs and expectations. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, housing arrangement, special fund and MLG, and assistance to restore their living conditions and incomes.

Project Related Income Generation Opportunities During the construction period, the PMO and IA will offer some temporary employment job opportunities, such as excavation for pipeline and structures and soil and earth transportation. During the project operational period, the APs with suitable qualifications will be employed and receive on-the-job training. Women and the poor will be given priority to be employed by the project. After the constructions of the resettlement site have been completed, it is preliminarily planned that following employment opportunities shall be provided for the APs: 10 security guards for the resettlement area, 15 management posts, 5 cleaners and about 30 public welfare position jobs. The ratio of employment for men and women will be 1:2. The salary will be between CNY600 to CNY1,000 per month. As a result, the APs could get access to additional income generation opportunities and additional income. Therefore, the APs will benefit from the resettlement of the Project.

Provision of Technical Training to the APs In recent years, with the rapid development of Wuzhou City’s economy and the establishment of the Wide North Bay Economic Development Zone, the formation of the three-dimensional transportation grid and increased speed of industry transfer in eastern area, Wuzhou City has become the joint that connect the Wide North Bay Economic Development Zone and Wide Pearl River Delta. In the near future, there will be a lot of processing industries move to Wuzhou City, promoting the development of logistics, service industries and tourism. All these will bring in lots of employment opportunities to the city and the technical workers and service labors will be in shortage.

In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the ROs and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The technology training will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted.

By taking into consideration of the low education status and lack of working skills for the major labor force of the affected households, especially women, the IA will ensure that 50% of the trainees will be females. After training of occupational skills, the APs could get job nearby the resettlement area. A total of CNY 724,684 has been budgeted as training cost, which will cover the cost for 2,900 persons who are unemployed, temporary workers and seasonable labors, with average training cost CNY250 per person. MWG will provide necessary assistance to the APs who would like to get access to credit from the local banks.

The training will be carried out twice a year, commenced from the third quarter of 2009 and last till first quarter of 2013. The training will be implemented in association with local district government, RCs, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, 50% of women should be included. The training includes:

(1) Public security guard, cleaning, public aesthetic landscaping, maintenance of public facilities, management of parking lot, and others; (2) Horticulture, sewing and knitting, beauty and hairdressing; (3) Maintenance and repair of motorcycle, vehicle, and electronic products; (4) Car decoration and management of cleaning and washing accessories; (5) Food and catering services, and domestic servant services; (6) Sales of products, small business registration and operation; and, (7) Technology on synthetic gemstone processing.

6. Cost and Schedule

The preliminary cost estimate for the LAR program is about CNY 221.252 million, equivalent to US$ 31.61 million in 2008 prices, including contingencies. The LAR is scheduled to begin with the construction of host area in Zaochong from March 2009 and complete in March 2012, and the APs from Pingminchong valley will move into the new resettlement houses by the end of June 2012. Civil works can not be started before compensation is paid to APs in full in accordance with recently promulgated State Council Decree #31.

Appendix 2 List of Gender Identified Participants

No. of Aps Participating Location Date Responses/Main Issues Discussed/Concerns No. of Total No. of No. of Organizations Participants Males Females Project area of Pingminchong Dec 20, 2007 • Project information briefing PMO, IA, WLRB, and APs 178 106 72 • Comments and suggestions on options to minimize the impacts of LAR, compensation rates and resettlement and rehabilitation plans

Project areas of Jan 11-12, • Overall site layout; PMO, IA, DI, PPTA 12 8 4 Pingminchong and Zaochong 2008 • Surroundings and nearby land-use of the Project areas; Consultants, and APs Resettlement Area • Current users of proposed project site; • Site topography, hydrology, and water; • Resettlement plans and buffer area; • Future plans and layout; • Identification of resettlement impacts and poverty / social impact issues; and, • Concerns and suggestions: fair and sufficient compensation for land acquisition.

Beneficiary area of Jan 15-16, • Community and household socioeconomic profile of the project IA, DI, PPTA Consultants, 11 6 5 Pingminchong 2008 areas through focus group discussion; and APs • Majority of the residents would like to move out of the valley as soon as possible; • Identification of major social issues to the local communities; • Measures to avoid or minimize land acquisition and resettlement impacts; • Lack of drainage facilities, inconvenience of going up and down of the hill, poor house and living conditions, disordered house construction, loss of vegetation in Pingminchong valley; • Knowledge about geohazard by community people; • Major problems encountered by the households living in

No. of Aps Participating Location Date Responses/Main Issues Discussed/Concerns No. of Total No. of No. of Organizations Participants Males Females Pingminchong valley; • Losses to community and families due to geohazard; and, • Community public warning and education of geohazard.

Conference room of WMG February 20, • Women’s Federation (WF) of Wuzhou City has at least three PMO, IA, ROs, WF, RCs, 23 15 8 Building 2008 programs - “sunshine training program”, “4050 employment APs, and PPTA Consultants training program” and “micro-credit program”. Many laid-off female workers from previous enterprises have been re- employed through these programs. The IA, ROs, WF, RCs, and APs have reached agreement that WF will involve in guiding consultation and public participation for income rehabilitation activities in combination with their current ongoing programs so that female APs can make more earnings than before.

Project area of Pingminchong February 29 • The residents in Pingminchong valley are in great anxiety DI 145 111 44 and 30, 2008 during the rainy seasons. They worried a lot about their houses, the safety of people’s life and properties; • Each year, they have to spend some money on the repair of their houses; • Majority of the households in Pingminchong valley would like to move out of the area and it would be the sooner the better and some of the APs do not mind that much as their houses are at the bottom of the Pingminchong valley which have less risks of geohazard; • Majority of women would like to move out of Pingminchong valley as early as possible and expect enjoy equal rights and entitlements with men, and majority of men also would like to move out to other places in the city as soon as possible.

Conference room of WMG Mar 2, 2008 • Agreement with cash compensation or replacement houses in PMO, IA, DI, RCs and APs 31 21 10 Building according with the national regulations • Agreement to move to Zaochong Resettlement Area due to the

No. of Aps Participating Location Date Responses/Main Issues Discussed/Concerns No. of Total No. of No. of Organizations Participants Males Females prosperities of economy and business development and improved living environment

Project area of Pingminchong Mar 15 – 31, • Household demographical and socioeconomic aspects; Survey Team of Wuzhou 300 191 109 2008 • Understanding of the overall Master Plan of Wuzhou City; Statistics Bureau, PPTA • Current geohazard situation and problems; Consultants, and • Satisfaction of government services; households in the Project • Impact issues; beneficiary areas • General attitudes to the Project, concerns and recommendations; and, • Perceived benefits of the Projects.

Project area of Pingminchong Mar 27 • The APs are satisfied with the compensation rate, and PMO, IA, DI, RCs, and APs 200 140 60 resettlement and rehabilitation measures; • APs’ concerns on fair compensation and timely disbursement of compensation payment; • Most of the APs are satisfied with designed layout of resettlement site and housing plan, public infrastructures and facilities; • The majority of the households will choose replacement houses in the resettlement site. A small proportion of households hope to have bigger new houses than before, they plan to use their savings to purchase extra structures over the original areas of their houses. For those living in small houses (<12 m2 per capita), they will be offered new houses with area of no less than 45 m2 per capita. The area more than 12 m2 per capita will be charged at the price of economy houses; • The vulnerable people expressed their concerns for the future livelihood and request the IA to allocate special fund for training to them for additional job and income opportunities.

Office of Pingdong & Pingxi Apr 3, 2008 • Women will be eligible, on an equal basis, for all compensation PMO, IA, DI, RCs, and APs 25 8 17

No. of Aps Participating Location Date Responses/Main Issues Discussed/Concerns No. of Total No. of No. of Organizations Participants Males Females RCs payments, training programs and other assistances to be provided. The houses to be purchased or allocated for resettlement should belong to both wife and husband of a household; • Both the names of wives and husbands should be written on the property certificate of houses; • Explanation and propaganda work to the community women to draw their close involvement in the resettlement process; and, • Women are eager to participate in the resettlement process.

Project area of Apr 8, 2008 • Discussion on employment and training to the APs IA, DI, RCs, and APs 230 161 69 Pingmingchong • Females would like to get training to improve their skills or more job opportunities; • Strong interest to participate in the Project impelementation; and, • Other income generation opportunities to the APs.

Project area of Pingminchong Apr 17, 2008 • Provision of MLG by local affairs bureau if their income is less PMO, IA, DI, Wuzhou Civil 97 63 34 than MLG, provision of training and employment by the IAs, Affairs Bureau, and and micro-credit by WMG, assistance during relocation process vulnerable APs by WMG, and priority will be given to choose building location and floor by the IA and WMG

Beneficiary area of Apr 22, 2008 • Discussion on resettlement plan and rehabilitation plan; PMO, IA, DI, RCs and APs 98 69 29 Pingminchong Geohazard • Majority APs agree with the Zaochong Resettlement Area; and, Resettlement • Rehabilitation options to the APs. Total 1,350 899 461

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APPENDIX 3 TOR FOR EXTERNAL MONITORING AND EVALUATION

A. Introduction

According to the requirements stipulated in the “Regulations on Construction Supervision” promulgated by the Ministry of Construction of the People’s Republic of China (PRC) in 1995, all construction projects shall be properly supervised. It is also a requirement of the Asian Development Bank (ADB) that loan projects that result in land acquisition and resettlement be properly monitored and evaluated. In order for the implementation of the land acquisition and resettlement program of the Guangxi Wuzhou Urban Development Project (GWUDP) to comply with the provisions of the Resettlement Plan (RP), monitoring of implementation, both “internal” and “external”, will be carried out during and after the implementation of the Project.

An independent monitoring agency (Monitor) will be engaged through competitive tenders for the external supervision, monitoring and evaluation. The Consultant will be a PRC consulting entity who has experience in ADB or World Bank projects dealing with resettlement issues.

Monitoring and evaluation will include, but not be limited to:

z Monitoring the progress and effectiveness of RP implementation; z Evaluation of income restoration and post-resettlement conditions of the APs and host communities.

B. Objectives and Requirements of Monitoring and Evaluation

The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

z Economic situation prior to and after displacement of land or housing; z Timely disbursement of funds; z Environmental conditions; z Social adaptability after resettlement; z Rehabilitation of the vulnerable groups; z Measures taken to restore affected production and livelihoods of the APs, institutions, enterprises and shops; and, z Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project areas.

Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwords. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IA, local officials, resident community leaders, management staff of institutions and enterprises, and owners of shops, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, other vulnerable groups and unemployed workers.

C. Monitoring Indicators

The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

z Disbursement of entitlements to affected households and institutions, enterprises and shops: compensation, housing, employment, and necessary assistances as specified in the RP. z Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed. z Provision of alternative housing: the affected persons must move into their alternative housing at least one month before the relocation; the compensation for construction of houses should be equivalent to the replacement cost; the affected persons must receive on time their entitlements regarding relocation allowance. z Restoration of basic infrastructure and special facilities: all necessary infrastructure and special facilities should be restored at the resettlement sites at least up to a standard equal to the standard at the original location; the compensation for all infrastructure and special facilities should be sufficient to reconstruct it to the same quality. z Level of AP’s satisfaction: level of APs’ satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored. z Standard of living: Throughout the implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation. z Reemployment of affected staff and workers, and compensation of lost wages. z Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

D. Special Considerations

Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

z The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluating unit will also provide recommendations and assistance to the EA in respect of women’s issues. z Care and attention to vulnerable groups: Closely monitor living conditions of the poor, elders, the handicapped, and other vulnerable groups after resettlement, to ensure that no hardship is experienced. 3

z Monitoring and evaluating will provide information on utilization and adequacy of resettlement funds. The Wuzhou Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

E. Contents and Distribution of Independent Monitoring Reports

A monitoring report will include, among other things:

z conclusion of investigation and evaluation; z major existing and potential problems; z recommended mitigation or prevention measures which will be incorporated into a revised plan if necessary; z assessment of previous follow-up actions.

The IMA will forward copies of the reports to the Asian Development Bank. JPMO will also submit a resettlement completion report to the ADB, to be followed by post-resettlement impact evaluation reports by the monitor, which should provide further evidence whether adverse effects of the Project have been mitigated adequately, and at least non-affected household income levels have been restored for the APs.

F. Monitoring Schedule

The Monitor will provide the ADB, EA, IA, ROs, WLRB, WHDAO and relevant departments with monitoring reports every six months during resettlement implementation and annual evaluation reports as well within 2 years after the completion of resettlement implementation. Table 1 provides the resettlement monitoring and evaluation schedule.

Table 1 Schedule for Resettlement Monitoring and Evaluation No. Report of M&E Date 1 Baseline Survey of Socioeconomic Information January - March, 2008 2 First Monitoring Report 30 June, 2009 3 Second Monitoring Report 31 December, 2009 4 Third Monitoring Report 30 June, 2010 5 Fourth Monitoring Report 31 December, 2010 6 Fifth Monitoring Report 30 June, 2011 7 Sixth Monitoring Report 31 December, 2011 8 Seventh Monitoring Report 30 June, 2012 9 Resettlement Completion Report 31 December, 2012 10 First Annual Evaluation Report 31 December, 2013 11 Second Annual Evaluation Report 31 December, 2014