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Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project (RRP PRC 44007)

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Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project (RRP PRC 44007) Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project (RRP PRC 44007) Resettlement Plan June 2012 PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Prepared by Fuzhou City Investment and Development Company for the Asian Development Bank. This 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. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. PPTA 7595-PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Resettlement Plan Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Final Resettlement Plan Fuzhou City Investment and Development Company June 2012 PPTA 7595-PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Resettlement Plan CURRENCY EQUIVALENTS (as of 25 June 2012) Currency unit – Yuan (CNY) CNY1.00 = $0.15707 $1.00 = CNY6.3665 ABBREVIATIONS AAOV – average annual output value ADB – Asian Development Bank APs – affected persons CNY – Chinese yuan DRO – demolish and resettlement office EA – executing agency FB – financial bureau FDRC – Fuzhou Development and Reform Committee FCIDC – Fuzhou City Investment Development Company FMG – Fuzhou Municipal government FPMO – Fuzhou project management office FUMRB – Fuzhou Urban Management Regulatory Bureau GDP – Gross domestic product HH – Household IA – implementing agency JPO – Jiangxi Project Office JPMO – Jiangxi Project Management Office LAR – land acquisition and resettlement LRB – land and resources bureau M&E – monitoring and evaluation PMO – project management office PRC – People’s Republic of China PRMO – Project Resettlement Management Office RC – resettlement community RO – resettlement office RP – resettlement plan VG – vulnerable group WEIGHTS AND MEASURES mu – 0.033 ha ha – Hectare km – Kilometer km2 – square kilometer m – Meter m2 – square meter m3 – cubic meter t – ton NOTE In this report, "$" refers to US dollars. PPTA 7595-PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Resettlement Plan Contents KEY TERMINOLOGY EXECUTIVE SUMMARY I. PROJECT INTRODUCTION 1 A. Background 1 B. Project Description 1 C. Impact Area 4 D. Preparation of the Resettlement Plan 5 II. RESETTLEMENT IMPACT 6 A. Measures to Minimize Land Acquisition and Resettlement Impacts 6 B. Project Impact Survey 6 C. Findings of the Resettlement Impact Measurement Surveys 7 D. Impact Assessment 12 III. SOCIOECONOMIC PROFILES OF THE IMPACTED AREAS 15 A. Social and Economic Status of the Impacted Areas 15 B. Socioeconomic Profiles of the Affected Towns and Villages 16 C. Analysis of Affected Women in Project Areas 26 IV. LEGAL FRAMEWORK AND RESETTLEMENT POLICIES 28 A. Applicable Laws & Regulations and Decrees 28 B. Relevant Clauses of the Laws & Regulations and Decrees 29 C. The ADB Involuntary Resettlement Policies 34 D. Policy Differences between ADB and PRC 35 E. Compensation Rates Adopted for the Project 37 F. Entitlement Matrix 38 V. RESETTLEMENT SCHEME AND INCOME REHABILITATION 41 A. Resettlement Targets 41 B. Resettlement Population 41 C. General Resettlement Strategy 42 D. Resettlement Plan 43 E. Safeguard Measures for Resettling Vulnerable Groups 52 F. Gender Issues during Resettlement and Income Restoration 53 VI. PUBLIC PARTICIPATION AND CONSULTATION 54 A. Objectives of Consultation and Participation 54 B. Disclosure of Resettlement Policy and Resettlement Plan 60 VII. GRIEVANCE REDRESS MECHANISMS 62 A. Grievance Channels 62 B. Principle of Grievance Treatment 63 C. Reply to Grievance 63 D. Record, Feedback and Follow-up of Grievance 63 VIII. INSTITUTION AND RESPONSIBILITIES 65 A. Institutional Setup 65 B. Responsibilities 66 C. Capacity Building 67 PPTA 7595-PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Resettlement Plan IX. MONITORING AND EVALUATION 70 A. Internal Monitoring 70 B. External Resettlement Monitoring 71 C. Community Monitoring 74 D. Post Assessment of the Resettlement 74 X. RESETTLEMENT BUDGET 75 A. Land Compensation 75 B. Temporary Occupied Land 76 C. Compensation for Housing and Attached Facilities 76 D. Cost for Resettlement Site Preparation 77 E. Cost for Decoration 78 F. Subsidy for Temporary Housing 78 G. Relocation Cost 78 H. Cost for Incentive 78 I. Cost for Property Management 79 J. Vulnerable Group Subsidies 79 K. APs Compensation Costs 79 L. Special Facilities Compensation 79 M. Other Costs 80 N. Land Taxes and Land Administration Fees 80 O. Basic Contingency 82 P. Total Investment Budget for Resettlement 82 XI. RESETTLEMENT PLAN IMPLEMENTATION PROCEDURES AND SCHEDULE 84 A. Activities Prior to Resettlement 84 B. Activities during Resettlement 84 APPENDICES 88 PPTA 7595-PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Resettlement Plan KEY TERMINOLOGY 1. The Resettlement Plan (RP) was prepared according to the relevant laws and regulations of the People’s Republic of China (PRC), Jiangxi Provincial Government, and the Asian Development Bank (ADB) concerning involuntary resettlement. The purpose of the RP is to present a resettlement and rehabilitation action plan for the project affected persons (APs) so as to ensure that the APs will benefit from the proposed project and improve their standard of living or at least rehabilitate their standard of living after the completion of the project. The resettlement plan is a legally binding agreement on land acquisition and resettlement implemented by the Fuzhou municipal government and the Fuzhou Investment Development Company as the project implementing agency. The company will be responsible to implement the RP by providing adequate funding and ensuring accurate execution by relevant agencies of Fuzhou municipal government. 2. Displaced Persons. There are three categories of ‘Displaced Persons’: (i) persons with formal legal rights to land lost in its entirety or in part; (ii) persons who lost the land they occupy in its entirety or in part who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under nation laws; and (iii) persons who lost the land they occupy in its entirely or in part who have neither formal legal rights nor recognized or recognizable claims to such land. 3. In case of first two categories of displaced people, the borrower/client is required to compensate either in way of adequate and appropriate replacement land and structure or in cash at full replacement cost for the losses as well as relocation assistance. For the third category, compensation is provided for the loss of assets other than land at full replacement cost. Under the third category, only those displaced people are eligible for compensation who occupied the land or structure in the project area prior to the cut-off date. 4. The Definition of “Resettlement”. “Resettlement” refers to a re-arrangement so that APs can benefit from the project. It includes: (i) relocation of living sites; (ii) creation of new jobs for the persons whose employment is affected; (iii) rehabilitation of or compensation for affected land, working space, trees, and infrastructures (iv) rehabilitation of the APs whose living standard of living or quality of life is affected due to land acquisition and resettlement; (v) rehabilitation or compensation provided to affected individuals or public enterprises; and (vi) rehabilitation of affected cultures or common properties. 5. The Definition of Rehabilitation. “Rehabilitation” refers measure to assist APs in continuing their production activities and/or improve or at least maintain their standard of living (relative to the level before the project). The purpose of a “resettlement plan” is to ensure a proper resettlement and rehabilitation of the APs, compensate for their losses, and maintain or improve their standard of living. In order to achieve this purpose, the plan provides measures to restore APs’ incomes and maintain their standard of living. Affected productive resources including shops and enterprises, public properties, infrastructure, and cultural properties will be improved or at least rehabilitated to at least maintain the original level before the project. PPTA 7595-PRC: Jiangxi Fuzhou Urban Integrated Infrastructure Improvement Project Resettlement Plan 6. Cut-off Date. The cut-off date refers to the date when detailed measurement survey is conducted, and all those whose assets were affected within the scope of impacts will be entitled for compensation and rehabilitation in accordance with the RP. 7. Definition of Replacement Cost. Replacement Cost refers to a method of asset evaluation that uses market price to replace lost property or uses its closest equivalent, adding any transaction cost, for example, administration cost, tax, registry fee and the cost for gaining (owning or using) qualification. If the standard is not stipulated in any national law, a replacement cost is necessary to be complemented to it. The replacement cost is determined on the basis of the higher one of the current market price and the market price prior to property lost. In the absence of the functional market, a compensation structure shall be used to make the living level of APs recover at least to the level when losing
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