PRC: Anhui Integrated Transport Sector Improvement Project–X056 Shantou, Sixian County- Minxian, Yongqiao District Section

Updated Resettlement Plan

May 2011

Prepared by Anhui Highway Administration Bureau for the Asian Development Bank.

CURRENCY EQUIVALENTS

Currency unit – Yuan(CNY) $ 1.00 = CNY 6.80

ABBREVIATIONS ACTVC - Anhui Communications Vocational & Technical College ADB - Asian Development Bank AHAB - Anhui Highway Administration Bureau APCD - Anhui Provincial Communications Department Anhui Provincial Communications Investment Group ACIG - Company APs Affected Persons AVs Affected Villages APG - Anhui Provincial Government M&E Monitoring and Evaluation PMO - Project Management Office RP - Resettlement Plan PRC - People’s Republic of China

NOTE (i) In this report, "$" refers to US dollar unless otherwise stated.

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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.

ADB Financed Anhui Integrated Transport Sector Improvement Project

Resettlement Plan for X056 Shantou, Sixian County—Minxian, Yongqiao District Section （updated）

Anhui Highway Administration Bureau

Hohai University

May, 2011

Note on the updated RP

On March 15, 2009, the Anhui Development and Reform Commission gave a reply on the detailed design of X056 with Document ADRC Design [2010] No.204. In April 2010, Anhui Hongtai Traffic Engineering Design Institute Co., Ltd. completed the design of the construction drawings of the subproject. This updated RP is based on the detailed design, the construction drawings, the land survey delimitation report and the field survey mainly. The resettlement impacts, compensation and resettlement policies, the socioeconomic profile, the resettlement budget and the resettlement implementation schedule have been updated mainly, involving all chapters of the draft RP.

A. Summary RP update of X056 Item Updated item Former RP Updated RP Remarks Route length Route length 106.365 decreased by 0.359 Engineering Route length 106.006 km, 1 km, roadbed width 10.5 km, roadbed width design roadbed width 10 meters meters decreased by 0.5 meters Acquiring 365.08 Acquiring 905.57 mu of Acquiring 540.49 mu of mu less of collective Impacts of land collective land, affecting collective land, affecting 2 land, affecting 753 acquisition 1,884 households with 1,091 households with less households 6,455 persons 3,813 persons with 2,642 persons House demolition Demolishing houses of Demolishing houses of area increased by Impacts of 8,672.3 m2, affecting 85 8,820.36 m2, affecting 148.06 m2, affecting 3 house households with 390 134 households with 494 49 more demolition persons persons households with 104 persons The Uniform Annual 28,350-30,030 yuan/mu Output Values and 18,500 yuan/mu for for arable land, Compensation arable land, 12,000 Compensation 14,175-15,015 yuan/mu Rates for Land yuan/mu for non-arable 4 rates for land for construction land and Acquisition of Anhui land, young crop acquisition unused land, young crop Province (APG compensation fees 500 compensation fees 850 [2009] No.132) yuan/mu yuan/mu apply to the updated RP. The subproject will affect The subproject will affect 6,612 people out of 4187 people out of 1190 1,883 households in households in total, in total. in which 6,222 which 3693 people out of people out of 1,798 1056 households are Through optimizing households are affected affected by the design, land by the acquisition of Directly acquisition of collective acquisition is collective land only, 233 5 impacted land only, 120 people out reduced. Therefore, people out of 46 people of 35 households are households are affected the affected affected by both house by both house households are demolition and land demolition and land decreased. acquisition, 374 people acquisition, 157 people out of 99 households are out of 39 households are affected by house affected by house demolition only demolition only Compensation 410 yuan/m2 for 530-630 yuan/m2 for All counties have 6 rates for house masonry concrete masonry concrete promulgated the demolition structure, 260/m2 for structure, 430-530 latest compensation

masonry timber yuan/m2 for masonry rates, which are structure, 160 yuan/m2 timber structure, 380 higher than those in for earth timber yuan/m2 for other the RP. structure, 80 yuan/m2 for structure simple structure Resettlement option for Self-demolition and Self-demolition and 7 house self-rebuilding self-rebuilding demolition Budget decreased Financial 8 39.2868 million yuan 35.2493 million yuan by 4.0375 million budget yuan The land acquisition The land acquisition work Implementation work began in 9 will begin in July 2011 schedule December 2009 and will and end in July 2013. end in December 2012.

Approval ： Chen Shaojun

Review ： Zhang Kui

Specialized ： Yin Jianjun Design

Check ： Yin Jianjun Wang Changcai

Writers ： Zhuang Yan Hang Zhijuan

Yin Jianjun Wang Changchai Cao Songlai Gong Jianmei Participants ： Zhuang Yan Han Zhijuan

Tang Hui Wang Chunxia

Letter of Commitment

Through the Ministry of Finance, Anhui Provincial Government (hereinafter called as APG) has applied for a loan from ADB to finance this subproject. Therefore, it must be implemented in compliance with the guidelines and policies of ADB on social security. This Resettlement Plan is in line with a key requirement of ADB and will constitute the basis for land acquisition, house demolition and resettlement of this subproject. The Plan also complies with the laws of the People's Republic of China and local regulations, as well as with some additional measures and the arrangements for implementation and monitoring for the purpose of achieving better resettlement results. APG hereby approves the contents of this Resettlement Plan and guarantees that funds will be made available as stipulated in the budget. APG has discussed the draft Resettlement Plan with relevant units that have confirmed their acceptance via Anhui Highway Administration Bureau and affected counties, and authorizes the Anhui Project Management Office for ADB Financed Projects as the responsible agency to generally manage the implementation of this subproject and relevant resettlement activities, and the local governments of the affected areas to be responsible for the implementation of this subproject and related resettlement activities within the respective jurisdictions

Executive Summary

1. Background The X056 Shantou, Sixian County—Minxian, Yongqiao District Section Reconstruction Project is one of the subprojects of the ADB financed project – Anhui Integrated Transport Sector Improvement Project. The subproject will further shorten the spatial and temporal distance between Suzhou City and Jiangsu Province, and improve the traffic and investment environment along the route thoroughly. It is also connected to a number of county highways, and has great significance in improving the traffic conditions of the Xiangs (Xiang is a sub-county administrative division in China) and towns, and improving the regional trunk highway network. The land acquisition and resettlement of the subproject involves 16 villages of 5 Xiangs/towns in Sixian County, 12 villages of 4 Xiangs/towns in Yongqiao District and 11 villages of 3 Xiangs/towns in Lingbi County, 39 villages of 12 Xiangs/towns in total. The subproject will commence in 2011 and be completed in 2013, and the implementation plan for land acquisition, house demolition, compensation and resettlement will be put into practice in July 2011, and completed by July 2013. The estimated resettlement expenses of the subproject are 35.2493 million yuan (based on prices of 2011), including basic expenses for land acquisition (occupation) and house demolition, relevant taxes and unexpected expenses, accounting for 9.64% of the whole project budget. 2. Resettlement Impacts The main impacts of the X056 from Shantou, Sixian County to Minxian, Yongqiao District Section Reconstruction Project are permanent land acquisition, temporary land occupation and demolition of residential houses. In the subproject, A total of 4187 people out of 1190 households will be affected. 540.49 mu of collective land will be acquired, including 425.76 mu of farmland (377.05 mu of dry land, 9.69 mu of orchard land, 33.6 mu of woodland and 23.44 mu of other farmland), accounting for 78.77%; 114.71 mu of construction land and unused land (72.14 mu of industrial and mining land, 42.56 mu of other construction land and unused land), accounting for 21.23%. 330 mu of land will be occupied temporarily, all being dry land, including 173.6 mu of land for borrow pits (52.6%), affecting 542 households with 1,921 persons temporarily. Houses of 8,820.36 m2 have been demolished, including 837 m2 in masonry concrete structure (I), 2,980 m2 in masonry concrete structure (II), 139.9 m2 in masonry concrete structure (III), 769.25 m2 in masonry timber structure (I), 1,507.9 m2 in masonry timber structure (II), 1,605.74 m2 in masonry timber structure (III) and 980.33 m2 in other structure, affecting 134 households with 494 persons. In addition, the subproject has also affected some ground attachments, such as tombs, trees and telegraph poles. 3. Policy framework and entitlements To avoid or minimize the negative impacts of land acquisition, the affected villager teams and displaced persons have been consulted on the selection of the relocation sites at the feasibility study stage, and the optimum option has been chosen through comparative selection. This Resettlement Plan has been formulated in accordance with the Land Management Law of the People’s Republic of China (2004), the Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28), the applicable policies of Anhui Province, ADB’s Involuntary Resettlement and policies on social security. The resettlement principles of the subproject are as follows based on the above policies and through consultation with

the local governments and the affected people: (1) Involuntary resettlement should be avoided where feasible; (2) The affected people are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project; (3) The affected people are given compensation and assistance in resettlement whether legal title is available or not; (4) If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land; (5) The affected people fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan; (6) No land should be acquired before the affected people are satisfied with the compensation and resettlement (plan); (7) The executing agency and an independent agency / third party should monitor the compensation, relocation and resettlement operations; (8) The vulnerable groups (including women) are provided special assistance or treatment so that they lead a better life, and all affected people should have an opportunity to benefit from the project; (9) The Resettlement Plan is consistent with the master plans of the affected counties and towns; and (10) The resettlement expenses are sufficient to cover all affected aspects. 4. Resettlement strategy The compensation for permanent land acquisition includes land compensation fees, resettlement subsidies and young crop compensation fees. The uniform annual output value of the affected county is 1,350-1,480 yuan/mu. For farmland, land compensation fees are 6-7 times the uniform annual output value and resettlement subsidy 14 times the uniform annual output value. For construction land and unused land, land compensation fees are 5 times the uniform annual output value and resettlement subsidy 5-5.5 times the uniform annual output value. Temporary land occupation includes that for borrow pits and other purposes. The compensation standards for temporary land occupation of Yongqiao District, Lingbi County and Sixian County are the same, being: single compensation for borrow pits—arable land: 12,000 yuan/mu, non-arable land: 4,000 yuan/mu; other land—4,000 yuan/mu· year. The occupation period will be 2 years. After expiry of the occupation period, the land will be restored by the implementing agencies, with a land reclamation fee of 4,000 yuan/mu. Occupation of arable land should be avoided in the temporary land occupation for borrow pits. If this is unavoidable, low-lying land and derelict land with lower output value and likely to be affected by inland inundation should be occupied where possible. After occupation, borrow pits may be restored as connecting water canals or fishponds. The compensation standards for demolition of residential houses of Yongqiao District, Lingbi County and Sixian County are the same, consisting of house compensation and other compensation, being: masonry concrete structure: 530-630 yuan/m2, masonry timber structure: 430-530 yuan/m2, others（lower than masonry timber structure III ）：380 yuan/m2, moving subsidy: 3 yuan/m2, and living subsidy during transition period: 3 yuan/m2· month, based on 6 months. The measures for income restoration of the affected people include cash compensation, provision of technical training and priority in employment, etc. Since permanent land acquisition is caused by highway construction mainly, the impacts of the subproject are in a linear form. Based on statistical analysis, though the amount of land acquisition is relatively large, it is scattered and has very moderate impact on the regular agricultural production of rural households. According to the different socioeconomic backgrounds of AVs, the use and relocation of land acquisition fees including land compensation and resettlement subsidy which will be determined by village meeting is also different. In general, land compensation and resettlement could be disbursed to affected households directly, collective villagers or invested by the

collectives. The crop compensation will be paid to affected households directly. When they get the compensation, the affected households will use the compensation fees for land improvement and the expanded reproduction of household sidelines. After house demolition, the village collective will plan housing sites in a unified manner or villagers will adjust their housing sites for reconstruction as they wish. The Anhui Project Management Office (PMO) and the Anhui Highway Administration Bureau (AHAB) will assist the department of labor and social security in affected counties to conduct the technical training of the labor force of the affected households (in which the female labor force is about 50%). In the meantime, a special fund will be set up to support the vulnerable groups, with a total amount of 258,500 yuan (0.7% of the resettlement expenses). The Anhui PMO will use this fund specifically to support the vulnerable groups affected by the subproject together with the civil affairs authorities of the affected counties. 5. Public participation and information disclosure All affected people have been informed of the key information of the Resettlement Plan in many ways, such as meeting, interview, villager team discussion, public participation meeting and community consultation (with 30% being women), and involved in the subproject through the above activities. Their opinions have been taken into account in the Resettlement Plan. The resettlement information booklet and the Resettlement Plan（updated） will be distributed to the affected people or village by the end of Dec 2011, and the draft Resettlement Plan will be published on the ADB website by the end of Dec .2011. An appeal channel has been established, and all agencies will accept complaints and appeals from the affected people free of charge, and all costs reasonably incurred will be disbursed from the contingency expenses of the subproject. 6. Complaints and appeals An appeal procedure has been formulated to settle disputes over compensation and other resettlement benefits for the purpose of responding to the affected people’s complaints timely and transparently. Possible complaints may arise from the acquisition of collective land, temporary land occupation and house demolition, etc. In this respect, the Anhui Provincial Communications Department (APCD), the highway administration bureaus of all levels and the affected town governments and village committees will coordinate and settle complaints and appeals possibly arising from the resettlement process. The displaced persons may file an appeal for any aspect of resettlement, including compensation standards. 7. Organization The APCD Foreign-funded Project Management Office (PMO) is the executing agency of the subproject, the Anhui Highway Administration Bureau (AHAB) is an implementing agency of the subproject, and the relevant highway administration bureaus (headquarters) of all levels and town governments will be responsible specifically for the implementation of the Resettlement Plan. 8. Monitoring, evaluation and reporting To ensure the successful implementation of the Resettlement Plan, the subproject will perform internal and external monitoring of the implementation of resettlement. The internal monitoring agency of the subproject is APCD. Internal monitoring will be executed jointly by AHAB and other competent authorities (e.g., land and resources bureau). A monitoring will be submitted to ADB semiannually. The Anhui PMO will entrust an independent monitoring agency to perform external monitoring and evaluation semiannually. The monitoring and evaluation expenses will be included in the estimate of resettlement expenses.

9. Budget for resettlement expenses All expenses incurred during land acquisition and resettlement will be included in the general budget of the subproject. Based on prices of May 2011, the total resettlement expenses of the subproject are35.2493 million yuan, including expenses for the acquisition of rural collective land of 14.0603 million yuan, accounting for 39.89% of total expenses; compensation for temporary land occupation of 4.6544million yuan, accounting for 13.21%; compensation for demolition of rural residential houses of 4.7098 million yuan, accounting for 13.36%; compensation for infrastructure and ground annexes of 2.4268 million yuan, accounting for 6.88%; and taxes and management fees of 9.3980 million yuan, accounting for 26.66%.

Glossary

Affected People affected by project-related changes in use of land, water or person (AP) other natural resources Money of payment in kind to which the people affected are entitled in Compensation order to replace the lost asset, resource or income Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are Entitlement due to affected people, depending on the nature of their losses, to restore their economic and social base Income Reestablishing income sources and livelihoods of people affected restoration Rebuilding housing, assets, including productive land, and public Relocation infrastructure in another location Loss of physical and non-physical assets, including homes, Resettlement communities, productive land, income-earning assets and sources, effect subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms A time-bound action plan with budget setting out resettlement Resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring plan and evaluation Vulnerable Distinct groups of people who might suffer disproportionately from group resettlement effects

Abbreviations

ACTVC - Anhui Communications Vocational & Technical College ADB - Asian Development Bank AHAB - Anhui Highway Administration Bureau APCD - Anhui Provincial Communications Department Anhui Provincial Communications Investment Group ACIG - Company APs Affected Persons AVs Affected Villages APG - Anhui Provincial Government M&E Monitoring and Evaluation PMO - Project Management Office RP - Resettlement Plan PRC - People’s Republic of China

Notes

Currency unit - Yuan $1.00 = 6.80 yuan I ha = 15mu

Contents 1 OVERVIEW OF THE SUBPROJECT ...... 1

1.1 BACKGROUND AND DESCRIPTION OF THE SUBPROJECT ...... 1 1.1.1 Background of the subproject ...... 1 1.1.2 Composition of the subproject and identification of displaced persons .. Error! Bookmark not defined. 1.1.3 Summary of resettlement impacts of the subproject...... Error! Bookmark not defined. 1.2 SOCIAL AND ECONOMIC BENEFITS ...... 4 1.3 INVESTMENT ESTIMATE AND IMPLEMENTATION PLAN OF RESETTLEMENT ...... 4 2 IMPACTS OF THE SUBPROJECT ...... 6

2.1 MEASURES TO AVOID OR MINIMIZE LAND ACQUISITION AND HOUSE DEMOLITION ...... 6 2.1.1 Principles for design and relocation site selection of the subproject...... 6 2.1.2 Comparative selection of options ...... 6 2.2 RANGE OF SURVEY OF LAND ACQUISITION AND HOUSE DEMOLITION IMPACTS ...... 6 2.3 METHODS AND PROCESS OF SURVEY ...... 8 2.4 PERMANENT ACQUISITION OF COLLECTIVE LAND AND IMPACT ANALYSIS ...... 9 2.4.1 Permanent acquisition of collective land ...... 9 2.4.2 Impact analysis of acquisition of collective land ...... 12 2.5 TEMPORARY LAND OCCUPATION ...... 17 2.6 DEMOLITION OF RESIDENTIAL HOUSES AND IMPACT ANALYSIS ...... 20 2.7 AFFECTED INFRASTRUCTURE AND GROUND ANNEXES ...... 24 2.8 AFFECTED POPULATION ...... 27 2.8.1 Summary ...... 27 2.8.2 Affected vulnerable groups ...... 30 2.8.3 Affected women ...... 33 3 SOCIAL AND ECONOMIC PROFILE ...... 34

3.1 SOCIAL AND ECONOMIC PROFILE OF AFFECTED AREAS ...... 34 3.1.1 Social and economic profile of affected city and counties ...... 34 3.1.2 Social and economic profile of affected towns (sub-districts) ...... 34 3.1.3 Social and economic profile of affected villages ...... 36 3.2 SOCIAL AND ECONOMIC PROFILE OF AFFECTED POPULATION ...... 40 4 LEGAL FRAMEWORK AND POLICIES ...... 45

4.1 LAWS, REGULATIONS AND POLICIES APPLICABLE TO RESETTLEMENT ...... 45 4.2 ADB POLICIES ...... 45 4.3 LAWS, REGULATIONS AND POLICIES OF THE PRC ...... 47 4.4 MAIN DIFFERENCES BETWEEN ADB POLICIES AND LAWS OF THE PRC ...... 54 4.5 PRINCIPLES FOR COMPENSATION OF THE SUBPROJECT ...... 55 4.6 CUT-OFF DATE OF COMPENSATION ...... 55 4.7 DETERMINATION OF COMPENSATION STANDARDS FOR RESETTLEMENT IMPACTS OF THE SUBPROJECT ...... 56 4.7.1 Acquisition of collective land ...... 56 4.7.2 Compensation for temporary land occupation ...... 56 4.7.3 Compensation standards for rural house demolition ...... 57 4.7.4 Compensation for annexes and infrastructure ...... 57 4.7.5 Standards for other costs ...... 58 4.7.6 Vulnerable groups ...... 58 4.7.7 Special measures for women ...... 59 4.8 ENTITLEMENT MATRIX ...... 59 5 RESETTLEMENT AND INCOME RESTORATION ...... 63

5.1 PURPOSE OF RESETTLEMENT ...... 63 5.2 RESETTLEMENT AND RESTORATION PLANS FOR AFFECTED VILLAGES ...... 63 5.2.1 Introduction of resettlement and restoration plans for affected villages ...... 63 5.2.2 General strategy of restoration measures for permanent land acquisition ...... 63 5.2.3 General strategy and measures for demolition of residential houses ...... 64 5.2.4 Resettlement and restoration plans for key villages ...... 65

5.3 RESETTLEMENT TRAINING ...... 69 5.4 PROTECTION OF WOMEN’S RIGHTS AND INTERESTS ...... 69 5.5 ASSISTANCE MEASURES FOR VULNERABLE GROUPS ...... 70 5.5.1 Measures for Disable, Wubao and Widows ...... 70 5.5.2 Measures for low-income or poor households ...... 70 5.5.3 Measures for seriously affected households ...... Error! Bookmark not defined. 5.6 RESTORATION PLANS FOR TEMPORARILY OCCUPIED LAND ...... 70 5.6.1 Restoration plan for land occupation for borrow pits ...... 70 5.6.2 Restoration plan for other temporarily occupied land ...... 71 5.7 RESTORATION PLAN FOR INFRASTRUCTURE ...... 71 6 RESETTLEMENT ORGANIZATION ...... 72

6.1 MANAGEMENT AGENCIES FOR RESETTLEMENT IMPLEMENTATION ...... 72 6.1.1 Organizational setup ...... 72 6.1.2 Responsibilities of agencies ...... 72 6.2 STAFFING AND FACILITIES ...... 74 6.2.1 Staffing ...... 74 6.2.2 Facilities ...... 74 6.2.3 Institutional training program ...... 74 7 PUBLIC PARTICIPATION, COMPLAINTS AND APPEALS ...... 76

7.1 PUBLIC PARTICIPATION ...... 76 7.1.1 Participation at the preparation stage ...... 76 7.1.2 Participation plan for the implementation stage ...... 77 7.2 COMPLAINTS AND APPEALS ...... 78 8 RESETTLEMENT BUDGET ...... 80

8.1 RESETTLEMENT BUDGET...... 80 8.2 RESETTLEMENT INVESTMENT PLAN AND SOURCES OF FUNDS ...... 80 8.3 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 81 9 RESETTLEMENT IMPLEMENTATION PLAN ...... 82

9.1 PRINCIPLES FOR RESETTLEMENT IMPLEMENTATION ...... 82 9.2 IMPLEMENTATION SCHEDULE FOR RESETTLEMENT...... 82 10 MONITORING AND EVALUATION ...... 84

10.1 INTERNAL MONITORING ...... 84 10.2 EXTERNAL MONITORING ...... 85 10.2.1 Scope and methods of external monitoring ...... 85 10.2.2 External monitoring reporting ...... 86 10.3 POST-RESETTLEMENT EVALUATION ...... 86 APPENDIXES ...... 87

APPENDIX 1 SCHEMATIC MAP OF THE SUBPROJECT ...... 87 APPENDIX 2 GENDER ANALYSIS OF AFFECTED AREAS ...... 88 APPENDIX 3 POLICIES ON INSURANCE OF FARMERS DEPRIVED OF LAND ...... 90 APPENDIX 4 PUBLIC PARTICIPATION AND MINUTES ...... 97 APPENDIX 5 RESETTLEMENT INFORMATION BOOKLET ...... 100 APPENDIX 6 DETAILED RESETTLEMENT BUDGET ...... 110 APPENDIX 7 EXTERNAL MONITORING OUTLINE ...... 113

List of Tables TABLE 1-1 IDENTIFICATION OF SCOPE OF CONSTRUCTION AND RESETTLEMENT IMPACTS ...... 2 TABLE 2-1 OPTIONS FOR COMPARATIVE SELECTION OF THE SUBPROJECT ...... 6 TABLE 2-2 ADMINISTRATIVE DIVISIONS AFFECTED BY RESETTLEMENT ...... 8 TABLE 2-3 COLLECTIVE LAND TO BE PERMANENTLY ACQUIRED ...... 10 TABLE 2-4 IMPACT ANALYSIS OF ACQUISITION OF COLLECTIVE LAND ...... 13 TABLE 2-5 PROPORTIONS OF LOSS OF LAND OF AFFECTED HOUSEHOLDS ...... 14 TABLE 2-6 DEGREES OF LOSS OF ARABLE LAND OF AFFECTED HOUSEHOLDS ...... 16 TABLE 2-7 WILLINGNESS OF HOUSEHOLDS AFFECTED BY LAND ACQUISITION FOR RESTORATION PLANS ...... 17 TABLE 2-8 SUMMARY OF TEMPORARY LAND OCCUPATION ...... 18 TABLE 2-9 SUMMARY OF RURAL RESIDENTIAL HOUSES AFFECTED BY DEMOLITION ERROR! BOOKMARK NOT DEFINED. TABLE 2-10 DEGREES OF IMPACT OF DEMOLITION OF RESIDENTIAL HOUSES .... ERROR! BOOKMARK NOT DEFINED. TABLE 2-11 AFFECTED GROUND ANNEXES ...... 25 TABLE 2-12 SUMMARY OF AFFECTED POPULATION ...... 29 TABLE 2-13 SUMMARY OF AFFECTED VULNERABLE GROUPS ...... 32 TABLE 3-1 BASIC INFORMATION OF SUZHOU CITY AND THE 3 COUNTIES (DISTRICTS) ...... 34 TABLE 3-2 ECONOMIC INDICATORS OF AFFECTED TOWNS ...... 36 TABLE 4-1 ABSTRACT OF LAND MANAGEMENT LAW AND RELEVANT POLICIES ...... 48 TABLE 4-2 MAIN PROVISIONS OF GUO FA [2004] NO.28 AND MLR FA [2004] NO.238 AND APPLICATION ...... 49 TABLE 4-3 PRINCIPLES FOR RESETTLEMENT OF THE SUBPROJECT ...... 55 TABLE 4-4 COMPENSATION MULTIPLES AND STANDARDS FOR ACQUISITION OF COLLECTIVE LAND OF THE CITIES (COUNTIES) ...... 56 TABLE 4-5 COMPENSATION STANDARDS FOR TEMPORARY LAND OCCUPATION ...... 56 TABLE 4-6 COMPENSATION STANDARDS FOR RURAL RESIDENTIAL HOUSES AND ANNEXES ...... 57 TABLE 4-7 COMPENSATION STANDARDS FOR ANNEXES AND INFRASTRUCTURE ...... 57 TABLE 4-8 TAX STANDARDS FOR RESETTLEMENT OF THE SUBPROJECT ...... 58 TABLE 5-1 WILLINGNESS FOR DEMOLITION OF RESIDENTIAL HOUSES AND RESETTLEMENT OF RURAL RESIDENTS ...... 65 TABLE 5-2 TECHNICAL TRAINING PROGRAM FOR DISPLACED PERSONS ...... 69 TABLE 6-1 STAFFING OF RESETTLEMENT AGENCIES ...... 74 TABLE 6-2 RESETTLEMENT TRAINING SCHEDULE FOR OFFICER AND VILLAGE LEADERS ...... 75 TABLE 7-1 PUBLIC PARTICIPATION AT THE PREPARATION STAGE ...... 76 TABLE 8-1 BUDGET OF RESETTLEMENT EXPENSES ...... 80 TABLE 10-1 PROGRESS REPORT OF LAND ACQUISITION, HOUSE DEMOLITION AND RESETTLEMENT ...... ERROR! BOOKMARK NOT DEFINED. TABLE 10-2 PROGRESS REPORT OF LAND ACQUISITION, HOUSE DEMOLITION AND RESETTLEMENT . 84 TABLE 10-3 IMPLEMENTATION SCHEDULE OF FUND USE ...... 85 TABLE 10-4 SCHEDULE OF RESETTLEMENT MONITORING AND EVALUATION ...... 86

List of Figures FIGURE 3-1 THE AGE STURCTURE ...... 41 FIGURE 3-2 THE EDUCATION STRUCTURE ...... 41 FIGURE 5-1 HOUSES UNDER UNIFIED PLANNING AND HOUSES POTENTIALLY DEMOLISHED OF DONGFENG VILLAGE ...... 67

1 Overview of the Subproject

1.1 Background and description of the subproject

1.1.1 Background of the subproject

Since the beginning of the Tenth Five-year Plan, Anhui Province has realized a rapid growth of traffic infrastructure by increasing investment and accelerating construction under the direction and support of the state macro-policies. An integrated traffic system composed mainly of trunk railway lines, expressways, main navigable channels and key airports has taken form. In particular, as the key link between the expressway network and the rural highway network, the national and provincial trunk highway network of the province plays an important role in creating a multi-layered, efficient highway transport system. However, this trunk highway network can hardly meet future transport demand due to its irrational hierarchical structure, relatively low technical standard of highways, and relatively low equivalent mileage. Therefore, it is necessary to improve the existing trunk highway network to improve its throughput greatly, realize the intensive utilization of land resources, and give full play to the service efficiency of the existing traffic resources at the cost of relatively small land occupation. In order to relieve the financial pressure and make reasonable use of funds to build the trunk highway network, AHAB decided to use ADB lending to rebuild and expand some trunk highways in the province in 2008, of which the reconstruction project of X056 (Shantou, Sixian County—Minxian, Yongqiao District Section) is part. X056 (Shantou, Sixian County—Minxian, Yongqiao District Section) starts from Shantou Town and south Sixian Town, runs through Xiangs/towns like Zhanglou, Dazhuang, Gonggou, Caochang, Dalu and Yugou to the west, and ends at Minxian, Suzhou, with a mileage of 106.006km. The whole section will be built as a Class II highway with a design speed of 60km/hour and a roadbed width of 10 meters. The schematic map of the subproject is shown in Appendix 1.

1.1.2 Summary of resettlement impacts of the subproject

The resettlement impacts of the subproject mainly include permanent and temporary land occupation, and the demolition of rural residential houses, involving 39 villages in 12 Xiangs/towns in Sixian County, Yongqiao District and Lingbi County, including 16 villages of 5 Xiangs/towns in Sixian County, 12 villages of 4 Xiangs/towns in Yongqiao District and 11 villages of 3 Xiangs/towns in Lingbi County. A total of 4187 people out of 1190 households will be affected. 540.49 mu of collective land will be acquired, including 425.76 mu of farmland (377.05 mu of dry land, 9.69 mu of orchard land, 33.6 mu of woodland and 23.44 mu of other farmland), accounting for 78.77%; 114.71 mu of construction land and unused land (72.14 mu of industrial and mining land, 42.56 mu of other construction land and unused land), accounting for 21.23%. 330 mu of land will be occupied temporarily, all being dry land, including 173.6 mu of land for borrow pits (52.6%), affecting 542 households with 1,921 persons temporarily. Houses of 8,820.36 m2 have been demolished, including 837 m2 in masonry concrete structure (I), 2,980 m2 in masonry concrete structure (II), 139.9 m2 in masonry concrete structure (III), 769.25 m2 in masonry timber structure (I), 1,507.9 m2 in masonry timber structure (II), 1,605.74 m2 in masonry timber structure (III) and 980.33 m2 in other structure, affecting 134 households with 494 persons. In addition, the subproject has also affected some ground annexes, such as tombs, trees and telegraph poles. Resettlement impacts in each township are shown in Table 1-1.

Table 1-1 Identification of Scope of Construction and Resettlement Impacts Town/Xian Present situation After construction No Starting and ending Mileage g along the Road Surface Road Surfa Main resettlement impact . pile No. (km) Class Class route bed (m) (m) bed (m) ce (m) K0+000-K0+510 Permanent acquisition of 16.12 mu of land, affecting 112 1 K4+920-K7+060 Shantou 5.35 III 8~9 7 II 10 8.5 people out of 33 households; demolition of 616.75 m2 of K8+020- K11+120 houses, affecting 24 people out of 7 households K0+510- K4+920 Permanent acquisition of57.26 mu of land, affecting 2 Liuwei 5.37 III 8~9 7 II 10 8.5 409 people out of 121 households; demolition of 9 m2 - K7+060 K8+020 of houses, affecting 3 people out of 1 households Permanent acquisition of 2.03 mu of land, affecting 15 K11+120- 3 Wafang 6.06 III 8~9 7 II 10 8.5 people out of 5 households; demolition of 600.52 m2 of K17+180 houses, affecting 53 people out of 15 households Permanent acquisition of 36.36 mu of land, affecting K17+180- 251 people out of 70 households; demolition of 811.5 4 Dazhuang 9.93 III 8~9 7 II 10 8.5 K27+110 m2 of houses, affecting 56 people out of 14 households Permanent acquisition of 17.08 mu of land, affecting K27+110- 5 Huangwei 10.93 III 8~9 7 II 10 8.5 129 people out of 36 households; demolition of 158.6 K38+040 2 m of houses, affecting 15 people out of 5 households Permanent acquisition of 47.03 mu of land, affecting K38+040- 332 people out of 98 households; demolition of 649.14 6 Fengmiao 10.12 III 8~9 7 II 10 8.5 K48+160 m2 of houses, affecting 40 people out of 11 households Permanent acquisition of 6.61 mu of land, affecting 43 K57+200- 7 Yugou 10.53 III 8~9 7 II 10 8.5 people out of 13 households; demolition of 316.9 m2 of K67+730 houses, affecting 17 people out of 5 households Permanent acquisition of 116.22 mu of land, affecting K67+730- 803 people out of 230 households; demolition of 8 Youji 12.36 III 8~9 7 II 10 8.5 2 K80+090 1427.56 m of houses, affecting 98 people out of 27 households Permanent acquisition of 125.09 mu of land, affecting K80+090- 9 Xieji 10.112 III 8~9 7 II 10 8.5 914 people out of 251 households; demolition of 701 K90+800 m2 of houses, affecting 26 people out of 7 households

Town/Xian Present situation After construction No Starting and ending Mileage g along the Road Surface Road Surfa Main resettlement impact . pile No. (km) Class Class route bed (m) (m) bed (m) ce (m) Permanent acquisition of 68.28 mu of land, affecting K90+800-K100+ 475 people out of 136 households; demolition of 10 Langan 9.82 III 8~9 7 II 10 8.5 620 3089.4 m2 of houses, affecting 147 people out of 38 households K100+620-K104 Permanent acquisition of 16.75 mu of land, affecting 11 Zhihe 3.61 III 8~9 7 II 10 8.5 +230 112 people out of 33 households; Permanent acquisition of 31.66 mu of land, affecting K104+230-K106 12 Caocun 2.768 III 8~9 7 II 10 8.5 218 people out of 65 households; demolition of 439.99 +998 2 m of houses, affecting 15 people out of 4 households

1.2 Social and economic benefits

The social and economic benefits of the subproject are as follows: 1. The subproject is an important measure in response to the eastward development strategy of Anhui Province, and to promote the incorporation of Suzhou City the Yangtze River Delta. Suzhou is close to the Yangtze River Delta, and almost at the average level of Anhui’s economy. X056 Shantou, Sixian County—Minxian, Suzhou Highway is an important eastward exit highway of Suzhou. The subproject has great significance in improving the investment environment along the route, shortening the spatial and temporal distance between Suzhou City and Jiangsu Province, and promoting the incorporation of Suzhou and even northern Anhui into the Nanjing Urban Circle and the Yangtze River Delta. 2. The subproject is an important measure in response to “building a new socialist countryside” proposed in the Eleventh Five-year Plan of China. The subproject runs through numerous Xiangs/towns, including Shantou, Dazhuang, Dalu, Yugou, Youji, Jieji and Langan. The subproject can improve the connection between these Xiangs/towns and Yongqiao District or even Jiangsu Province, and give play to the economic influence of cities on Xiangs/towns, and has great significance in driving the development of township enterprises, guiding the orderly transfer of surplus labor to non-agricultural industries and towns, increasing farmers’ income from labor services, and driving the process of urban-rural integration, and is an important measure in response to “building a new socialist countryside”. 3. The subproject is an important measure of improving the regional trunk highway network. The X056 Shantou, Sixian County—Minxian, Suzhou Highway is an important local highway in the north of Suzhou, Anhui, about 106.006km long, connecting the 3 counties (districts) of Sixian, Lingbi and Yongqiao of Suzhou City, and running through Xiangs/towns like Shantou, Dazhuang, Dalu, Yugou, Youji, Jieji and Langan. It is connected to X048 and G206 at both ends, and to G104, S302 and S201 in the urban area and numerous county roads, and is an important passage to Sicheng (seat of Sixian County), Lingcheng (seat of Lingbi County) and Yongqiao District, playing a great supporting role in the economic development of the northern towns of Suzhou. According to traffic volume forecasts, by 2031, the traffic volume of the subproject will be 9,722 cars/day. The existing roads are far from meeting the future traffic demand, and have to be improved. 4. The subproject is a need for the development of resources and the promotion of economic development. Suzhou abounds with natural mineral resources and specialties, especially coal with large reserves and broad distribution, whose proven reserve is about 6 billion tons, accounting for over 10% of the province’s coal resources; Suzhou is an integral part of Huaibei-Huainan Coalfield, and an important energy base in eastern China. Huangkou Oilfield has a predicted petroleum reserve of over 2 billion tons; the proven reserve of coal-bed gas in southern Suzhou is 300 billion m3; marble reserve is 40 million m3, ranking first in China, with over 20 varieties. The Lingbi stone is one of the “Four Strange Stones” of China. The traffic improvement will facilitate the development and utilization of resources.

1.3 Investment estimate and implementation plan of resettlement

The construction investment in the subproject is about 326 million yuan, which will be raised from the following 3 sources: ADB lending, domestic bank lending and funds raised by the employer. The resettlement expenses are 35.249 million yuan, accounting for 9.64% of total investment, all being domestic counterpart funds.

The overall construction period of the subproject is 2 years. In conformity with the construction period, the Resettlement Implementation Plan will be implemented from the end of 2011 to 2013.

2 Impacts of the Subproject

2.1 Measures to avoid or minimize land acquisition and house demolition

2.1.1 Principles for design and relocation site selection of the subproject

Land acquisition and house demolition will be minimized at the construction stage on the following principles: ¾ Avoiding or minimizing the occupation of existing and planned residential areas; ¾ Avoiding or minimizing the occupation of high-quality arable land; ¾ Utilizing existing national and local roads to lead to the proposed construction area; and ¾ Avoiding or minimizing the occupation of environmentally sensitive zones. ¾ Involve affected people in detailed design of alignment and passageways and selection of borrow pits to minimize resettlement impacts.

2.1.2 Comparative selection of options

During the design of the subproject, the negative impacts of construction, especially the number of displaced persons, have been minimized by making field investigation of the affected areas repeatedly and optimizing the project design on the precondition of realizing the intended results. Therefore, the amount of land acquisition and house demolition has been minimized, as shown in Table 2-1.

Table 2-1 Options for Comparative Selection of the Subproject Option 2 Project Option 1 Conclusion (recommendation) The former route runs The demolition area of houses and The road is rerouted to through Zhangshan, stores can be reduced by 7,448 the south of the town, involving the demolition m2, the affected population by 79 avoiding the demolition of of numerous urban households, and the number of numerous urban houses. houses entities by 9. X056 The former route runs The demolition area of houses and The road is rerouted to through Jieji Xiang, stores can be reduced by 6,437 the north of the town, involving the demolition m2, the affected population by 74 avoiding the demolition of of numerous urban households, and the number of numerous urban houses. houses entities by 10.

2.2 Range of survey of land acquisition and house demolition impacts

According to the recommended option, the resettlement impacts of the subproject involve 39 villages in 12 Xiangs/towns of 3 counties (districts). The scope of survey of the impacts of the subproject is shown in

Table 2-2 Administrative Divisions Affected by Resettlement County/district Pile No. Town Affected villages K0+000 ～ K0+510 K4+920 ～ K7+060 Shantou Shantou,Luochang K8+020 ～ K11+120 K0+510 ～ K4+920 Sixian Liuwei Xima ,Gaodu K7+060 ～ K8+020 K11+120 ～ K17+180 Wafang Changwei ,Zhanglou ,Guoji K17+180 ～ K27+110 Dazhuang Wanan ,Jiebei ,Dongfeng ,Hexie K27+110 ～ K38+040 Huangwei Gonggou ,Huaxin ,Caochang ,Wangzhai ,Hongxing K38+040 ～ K48+160 Fengmiao Fengmiao beighborhood committee ,Houzhu ,Mugu K57+200 ～ K67+730 Yugou Zhangzhai ,Zhenglou Lingbi Lilou,Youdong K67+730 ～ K80+090 Youji Youxi ,Youwei ,Zhangdonghu ,Dazhangli K80+090 ～ K90+800 Xieji Zhangshan ,Yunguang ,Xieji ,Matai K90+800 ～ Langan Landong ,Lanxi ,Anshui ,Hancun ,Kanting K100+620 Yongqiao K100+620 ～ Zhihe Tuanjie K104+230 K104+230 ～ Caocun Minxian ,Zhangzhuang K106+998

2.3 Methods and process of survey

In November 2008, the Anhui Provincial Construction Department entrusted the Anhui Highway Design Institute to prepare the Proposal for the ADB Financed Anhui Integrated Transport Sector Improvement Project, which was approved by the Anhui Development and Reform Commission. During August-November 2008, the engineering technicians of the Anhui Provincial Communications Planning, Survey and Design Institute conducted a survey of the affected physical indicators in the affected areas with the assistance of the affected villages and villagers as required by ADB to learn the resettlement impacts of the subproject. In November 2008, the Anhui Transport Administration Bureau entrusted the Anhui Highway Design Institute to prepare the Feasibility Study Report of the S312 Project, which is expected to be approved in July 2009. From December 2008 to March 2009, the resettlement survey team of ACTVC and Hohai University conducted a sampling survey of the social and economic conditions of the affected areas and the rural households (432) affected by land acquisition and house demolition according to the feasibility study report. The survey covered household population, impacts of land acquisition and house demolition, household economic condition and willingness for resettlement, etc. During the survey, the survey team also listened to the opinions of the village committees and the villagers about land acquisition, house demolition and resettlement, and conducted extensive consultation. The main findings were as follows: 1) Almost all affected rural households welcome the project and know the project will be commenced soon. 2) Almost all affected households thought the impacts of land acquisition to them were slight. After land acquisition, they could cultivate the remaining land and prefer to cash compensation, 3) Although the Project involves 3 counties, the affected households thought the unique compensation rate should be established to show the fairness; 4) The compensation should be disbursed in time and transparently and

intermediate links should be minimized as much as possible; 5) To house demolition, it should be implemented after the arrangement of house relocating site and compensation disbursement. In May 2011, with the deepening of design, and the adjustment of Anhui Province’s policies on land acquisition and house demolition, Hohai University was entrusted to conduct an supplementary survey for RP updating.

2.4 Permanent acquisition of collective land and impact analysis

2.4.1 Permanent acquisition of collective land

The subproject will acquire 540.49 mu of collective land, including 425.76 mu of farmland (377.05 mu of dry land, 9.69 mu of orchard land ,33.6 mu of woodland and 23.44 mu of other land), accounting for 78.77%,114.71 mu of construction land and unused land(72.14 mu of towns and mining sites ,42.56 mu of other land), accounting for 21.23%.affecting 3813 people out of 1091 households. The acquisition of collective land is shown in Table 2-3.

Table 2-3 Collective Land to Be Permanently Acquired Farmland Construction land and unused land Affected people District No. Pile No.. Town Village arable Woodla Towns and Total House-h Populati /county orchard Others Subtotal Others Subtotal land nd mining sites olds on K0+000 ~K0+510 Shanto 1 K4+920~K7+060 Shantou 16.12 0 0 16.12 0 0 16.12 33 112 u K8+020~K11+120 K0+510~K4+920 4 Liuwei Xima 57.26 0 0 57.26 57.26 121 409 K7+060~K8+020 7 Wafan Changwei 0.81 0 0 0.81 0 0.81 3 10 K11+120~K17+180 8 g Guoji 1.22 0 0 1.22 0 0 1.22 2 5 Sixian 9 Dongfeng 2 0 0 2 0 0 2 4 13 10 Dazha Jiebei 5.59 9 9 5.59 0 5.59 10 38 K17+180~K27+110 11 ung Hexie 26.76 0 0 26.76 26.76 53 189 12 Wanan 2.01 0 0 2.01 2.01 3 11 16 Caochang 1.73 0 0 1.73 0 0 1.73 5 17 Huang 17 K27+110~K38+040 Wangzhai 5.34 0 0 5.34 5.34 10 37 wei 18 Hongxing 10.01 0 0 10.01 10.01 21 75 Fengmiao 19 beighborhood 29.07 0 1.66 30.73 3.1 3.1 33.83 74 243 Fengmi K38+040~K48+160 committee ao 20 Houzhu 9.69 0 9.69 0 1.49 1.49 11.19 21 79 21 Mugu 1.41 1.41 0.6 0.6 2.01 3 10 26 K57+200~K67+730 Yugou Zhangzhai 6.61 0 6.61 0 6.61 13 43 Lingbi 29 Youwei 4.86 4.86 1.74 3.13 4.87 9.72 19 68 30 Dazhangli 41.18 0.99 42.16 4.01 4.01 46.17 89 312 31 Lilou 0 0 0.3 0.3 0.3 1 3 k67+730~k80+090 Youji 32 Zhangdonghu 0.73 8.35 9.08 10.59 10.59 19.67 37 135 34 Youxi 13.9 13.9 1.12 9.81 10.93 24.84 53 178 35 Youdong 10.09 0.77 10.86 3.26 1.4 4.66 15.52 31 107 36 Zhangshan 61.03 0.38 11.48 1.66 74.55 0.48 0.48 75.03 152 533 37 Yunguang 4.96 0 0.3 5.26 0.9 0.9 6.16 12 43 k80+090~k90+800 Xieji 38 Xieji 12.84 0.31 1.48 0.83 15.45 0.74 1 1.75 17.2 34 127 39 Matai 24.3 24.3 2.4 2.4 26.7 53 211 40 Landing 0.9 0.3 1.2 11.4 6.15 17.55 18.75 37 128 41 Yongqi Lanxi 4.5 1.95 3.45 9.9 19.35 19.35 29.25 59 207 42 ao k90+800~k100+620 Langan Anshui 0.52 0.71 0.8 2.03 0.08 0.08 2.12 3 11 43 Hancun 1.06 1.06 0 1.06 3 8 44 Kanting 11.4 3 0.6 15 2.1 2.1 17.1 34 121 k100+620~k104+23 45 Zhihe Tuanjie 3.5 1.5 6.2 11.2 5.55 5.55 16.75 33 112 0 46 k104+230~k106+99 Caocu Minxian 0.8 0.8 9.3 9.3 10.1 22 69

Farmland Construction land and unused land Affected people District No. Pile No.. Town Village arable Woodla Towns and Total House-h Populati /county orchard Others Subtotal Others Subtotal land nd mining sites olds on 47 8 n Zhangzhuang 6.26 0.6 6.86 14.7 14.7 21.56 43 149 Total 377.05 9.69 33.6 23.44 425.76 72.14 42.56 114.71 540.49 1091 3813

2.4.2 Impact analysis of acquisition of collective land

The villages affected by the subproject have 160500.4 mu of arable land in total, and 377.05 mu of arable land will be acquired in the subproject, accounting for 0.23%. Since the subproject involves road reconstruction in a linear distribution, the people affected by land acquisition will lose part of their land only. A comparative analysis of the arable land of the affected villages before and after land acquisition has been made according to the social and economic survey. Among the 31 affected villages, the proportion of impact ranges from 0.01% (Changwei,Youwei,lanxi,Landong and Anshui Villages) to 1.42% (Dazhangli village). The arable land is affected by land acquisition to a very low extent. In terms of income loss, the per capita loss ranges from 270.3 yuan to 7.35 yuan. The analysis of the villages affected by land acquisition is shown in Table 2-4. Among the 3813 people out of 1091 households affected by land acquisition, 3619 people out of 1043 households have a land loss rate of 0-9%, 194 people out of 49 households 10%-20%, and no rural household has a degree of impact of over 20%. Among the 1043 households with a land loss rate of 0-9%, no affected household has less than 1 mu of arable land, 12 households (1.15%) have 1-3 mu, 320 households (30.68%) have 3-5 mu, and 1,711 households (68.17%) have over 5 mu. Among the 48 households with a land loss rate of 10%-20%, no affected household has less than 3 mu of arable land, 19 households (39.58%) have 3-5mu, and 29 households (60.42%) have over 5 mu. The impact of the households affected by land acquisition is shown in Table 2-5 and Table 2-6. Generally, the affected areas are located in hilly areas, with the morphologic feature of “even generally and uneven locally”. The main crops are millet, corn, cotton, peanut, vegetables, etc., and only a small hilly area around Jiagou produces rice, known as “aromatic rice”. The alluvial soil stratum flooded by the Yellow River of the city is thick and fertile. Except greenhouse vegetables, net agricultural income per mu is about 500 yuan, and accounts for a low proportion in gross income. The nonagricultural industries in the affected areas are food processing, textile, building materials, energy, pharmaceutical and quarrying, etc., which have absorbed a large amount of labor. Meanwhile, the affected areas are also labor exporting areas, where about 20% of labor works outside, and about 80% of the farmers’ income comes from nonagricultural industries. In sum, the land acquisition of the subproject has relatively little impact on the regular agricultural production and agricultural income of the rural households.

Table 2-4 Impact Analysis of Acquisition of Collective Land

Before acquisition Impact of acquisition Proportion affected Income loss(yuan) %of Proportion Average whole District/count Total Total Arabl Affected Affectrd Arabl Proportion of Proportion of Pile No. Village of land Annual loss per Percapita income y house-hold populatio e land house-hold populatio e land house-holds(% population(% acquisitio loss house-hol l loss of s n (mu) s n (mu) ) ) n (%) d percapita l K0+000~K0+510 23851.6 K4+920~ K7+060 Shantou Shantou 893 4530 4851 33 112 16.12 3.70% 2.47% 0.33% 722.78 212.96 6.91% 8 K8+020~K11+120 K0+510~K4+920 84738.8 Liuwei Xima 1076 3585 6347 121 409 57.26 11.25% 11.41% 0.90% 700.32 207.19 6.54% K7+060~ K8+020 7 Changwei 1089 4620 6850 3 10 0.81 0.28% 0.22% 0.01% 1198.8 399.6 119.88 3.61% K11+120~K17+180 Wafang Guoji 1158 4924 7245 2 5 1.22 0.17% 0.10% 0.02% 1805.6 902.8 361.12 9.89% Dongfeng 1706 6397 9429 4 13 2 0.23% 0.20% 0.02% 2960 740 227.69 6.90% Jiebei 1479 5390 6320 10 38 5.59 0.68% 0.71% 0.09% 8273.2 827.32 217.72 5.94% K17+180~K27+110 Dazhuang Hexie 1232 4955 6434 53 189 26.76 4.30% 3.81% 0.42% 39604.8 747.26 209.55 7.11% Wanan 1282 5030 6296 3 11 2.01 0.23% 0.22% 0.03% 2973.32 991.11 270.3 9.01% Caochang 1246 4881 6030 5 17 1.73 0.40% 0.35% 0.03% 2566.66 513.33 150.98 4.52% Wangzhai 1156 4555 5720 10 37 5.34 0.87% 0.81% 0.09% 7909.45 790.94 213.77 6.54% K27+110~K38+040 Huangwei 14821.7 Hongxing 1294 5237 6310 21 75 10.01 1.62% 1.43% 0.16% 705.8 197.62 6.19% 6 Fengmiao 41279.4 neighborhoo 1191 6488 2577 74 243 29.07 6.21% 3.75% 1.13% 557.83 169.87 5.55% 0 K38+040~K48+160 Fengmiao d committee 13759.8 Houzhu 1287 5154 6120 21 79 9.69 1.63% 1.53% 0.16% 655.23 174.17 3.73% 0 K57+200~K67+730 Yugou Zhangzhai 117 501 724.4 13 43 6.61 11.11% 8.58% 0.91% 9386.20 722.02 218.28 0.55% Youwei 761 3044 3235 19 68 4.86 2.50% 2.23% 0.15% 6609.60 347.87 97.20 1.33% 56004.8 k67+730~k80+090 Youji Dazhangli 551 2812 2891 89 312 41.18 16.15% 11.10% 1.42% 629.27 179.50 6.37% 0 zhangdongh 870 3480 2145 37 135 0.73 4.25% 3.88% 0.03% 992.80 26.83 7.35 0.40%

Before acquisition Impact of acquisition Proportion affected Income loss(yuan) %of Proportion Average whole District/count Total Total Arabl Affected Affectrd Arabl Proportion of Proportion of Pile No. Village of land Annual loss per Percapita income y house-hold populatio e land house-hold populatio e land house-holds(% population(% acquisitio loss house-hol l loss of s n (mu) s n (mu) ) ) n (%) d percapita l u 18904.0 Youxi 193 580 1690 53 178 13.9 27.46% 30.69% 0.82% 356.68 106.20 3.22% 0 13722.4 Youdong 428 1682 1818 31 107 10.09 7.24% 6.36% 0.56% 442.66 128.25 2.70% 0 82386.1 Zhangshan 1224 4812 6063 152 533 61.03 12.42% 11.08% 1.01% 542.01 154.57 4.73% 8 Yunguang 1132 4320 5987 12 43 4.96 1.06% 1.00% 0.08% 6696 558 155.72 4.43% k80+090~k90+800 Xieji 17336.0 Xieji 1246 4913 6136 34 127 12.84 2.73% 2.58% 0.21% 509.88 136.5 4.52% 3 Matai 857 3392 4049 53 211 24.3 6.18% 6.22% 0.60% 32805 618.96 155.47 4.67% Landing 1423 5900 7035 37 128 0.9 2.60% 2.17% 0.01% 1287 34.78 10.05 0.37% Lanxi 1084 4401 6641 59 207 4.5 5.44% 4.70% 0.07% 6431.71 109.01 31.07 1.01% k90+800~k100+620 Langan Anshui 669 2673 4065 3 11 0.52 0.45% 0.41% 0.01% 747.15 249.05 67.92 2.13% Hancun 843 3491 5295 3 8 1.06 0.36% 0.23% 0.02% 1519.67 506.56 189.96 5.89% Kanting 1222 4794 7740 34 121 11.4 2.78% 2.52% 0.15% 16302 479.47 134.73 3.93% k100+620~k104+23 Zhihe Tuanjie 1150 4116 6975 33 112 3.5 2.87% 2.72% 0.05% 5005 151.67 44.69 1.40% 0 Minxian 991 4086 3825 22 69 0.8 2.22% 1.69% 0.02% 1073.25 48.78 15.55 0.56% k104+230~k106+99 Caocun Zhangzhuan 8 965 3985 3657 43 149 6.26 4.46% 3.74% 0.17% 8451 196.53 56.72 1.90% g

Table 2-5 Proportions of Loss of Land of Affected Households District/tow Town/xian Land loss Pile No. Village Total n g 0-9% 10%～20% >20％

House-hold Populatio House-hold Populatio House-hold Populatio House-hold Populatio s n s n s n s n K0+000~K0+510 K4+920~ K7+060 Shantou Shantou 33 112 33 112 K8+020~ K11+120 K0+510~K4+920 Liuwei Xima 118 396 3 13 121 409 K7+060~K8+020 Changwei 3 10 3 10 K11+120~K17+180 Wafang Guoji 2 5 2 5 Sixian Dongfeng 4 13 4 13 Jiebei 10 38 10 38 K17+180~K27+110 Dazhuang Hexie 51 180 2 9 53 189 Wanan 3 11 3 11 Caochang 5 17 5 17 K27+110~K38+040 Huangwei Wangzhai 10 37 10 37 Hongxing 20 71 1 4 21 75 71 234 3 9 74 243 K38+040~K48+160 Fengmiao Houzhu 19 72 2 7 21 79 Mugu 3 10 3 10 K57+200~K67+730 Yugou Zhangzhai 13 43 13 43 Yuwei 17 60 2 8 19 68 Lingbi Dazhangli 80 270 9 42 89 312 Lilou 1 3 1 3 k67+730~k80+090 Youji Zhangdongh 33 120 4 15 37 135 u Youxi 48 159 5 19 53 178 Youdong 27 90 4 17 31 107 Zhangshan 147 515 5 18 152 533 Yunguang 12 43 12 43 k80+090~k90+800 Xieji Xieji 34 127 34 127 Matai 50 200 3 11 53 211 Landong 36 124 1 4 37 128 Yongqiao Lanxi 57 198 2 9 59 207 k90+800~k100+620 Langan Anshui 3 11 3 11 Hancun 3 8 3 8 Kanting 34 121 34 121 k100+620~k104+23 Zhihe Tuanjie 33 112 33 112 0

Land loss Total District/tow Town/xian 0-9% 10%～20% >20％ Pile No. Village n g House-hold Populatio House-hold Populatio House-hold Populatio House-hold Populatio s n s n s n s n Minxian 22 69 22 69 k104+230~k106+99 Caocun Zhangzhuan 8 41 140 2 9 43 149 g

Table 2-6 Degrees of Loss of Arable Land of Affected Households Land loss Exiting arable land <10% 10%~ 20% >20% Subtotal <1 mu 0 0 0 0 1～3mu 12 0 0 12 3～5mu 320 19 0 339 >5mu 711 29 0 740 Tatal 1043 48 0 1091

According to the field survey, the households affected by land acquisition have the following willingness for resettlement: a) Use land compensation fees to renovate watercourses and improve water conservancy infrastructure, chosen by 47 households, accounting for 4.31% of all households affected by land acquisition; b) Readjust the structure of crop cultivation from one focused on cereal crops with low economic efficiency, such as corn and wheat, into one focused on crops with higher economic efficiency, such as vegetables and sweet potato, or increase the scale of stockbreeding, chosen by 231 households, accounting for 21.17%; c) Invest land compensation fees in tertiary industry businesses, such as catering, general merchandise and repair, to increase economic income, chosen by 99 households, accounting for 9.07%; and d) Use land compensation fees for skills learning and training, and to look for job opportunities from the outside, chosen by 714 households, accounting for 65.44%. The restoration plan for the impacts of land acquisition is shown in Table 2-7.

Table 2-7 Willingness of Households Affected by Land Acquisition for Restoration Plans Cash Restoration plan (households) Proportion compensation Restructuring Tertiary of land Households Farmland Skills training, (per of crop industry loss improvement employment household) cultivation businesses <10% 1,043 1,043 45 223 96 679 11- 20% 48 48 2 8 3 35 21 -100% 0 0 0 0 0 0 Total 1,091 1,091 47 231 99 714 Proportion 4.31% 21.17% 9.07% 65.44%

2.5 Temporary land occupation Temporary land use for construction means land occupied temporarily during the construction period, including borrow pits, and production, living areas and roads occupied temporarily during construction. All land occupied temporarily by the subproject is collective land, with a total area of 330.00 mu, all being dry land, affecting 1,921 people out of 542 households temporarily. The average period of temporary occupation is 2 years. According to the detailed design of the subproject, in the land occupied temporarily by the subproject, borrow pits will occupy 173.6 mu (52.6%), while the other land will occupy 156.4 mu (47.4%). Borrow pits will be located in mountain land or unused land where possible to avoid any adverse impact on rural households. If occupation of arable land is unavoidable, the following principals would be taken: (i) avoid creating unusable land and adverse environmental impacts, (ii) the selection of sites for burrow areas and spoil areas should include consultation with affected villages and should be in accordance with the township/ villages master plans, land use plans and the new countryside construction plans; (iii) the sites should be concentrated and the impact on arable land should be minimized; (iv) Where possible, site should be selected in low-lying land with bad soil quality; (v) According to the wills of local people, local geographical conditions and environmental regulations, the deep excavations could be restored as part of the local canal system, fishponds, farmland or landfill through different construction methods. The impacts of temporary land occupation are shown in Table 2-8.

Table 2-8 Summary of Temporary Land Occupation Land occupied temporarily Other land occupied Temporarily affected Districit/county Pile No. Town /xiang Village for borrow pits(mu) temporarily Total population Dry land Subtotal Dry land Suntotal Household person K0+000~K0+510 K4+920 ~K7+060 Shantou Shantou 5.2 5.2 3.2 3.2 8.4 15 51 K8+020~K11+120 K0+510~K4+920 Liuwei Xima 3.3 3.3 2 2 5.3 9 31 K7+060~ K8+020 Changwei 2 2 5.2 5.2 7.2 13 41 K11+120~K17+180 Wafang Guoji 4.8 4.8 3.6 3.6 8.4 12 39 Sixian Dongfeng 6.3 6.3 8.9 8.9 15.2 33 112 Jiebei 5 5 6.6 6.6 11.6 21 72 K17+180~K27+110 Dazhaung Hexie 12 12 4.5 4.5 16.5 29 108 Wanan 3.2 3.2 9.2 9.2 12.4 19 67 Caochang 3.5 3.5 2.7 2.7 6.2 8 29 K27+110~K38+040 Huangwei Wangzhai 3.3 3.3 6.8 6.8 10.1 17 68 Hongxing 8.2 8.2 0 8.2 12 45 Houzhu 2.6 2.6 10.2 10.2 12.8 22 71 K38+040~K48+160 Fengmiao Mugu 5.3 5.3 9.4 9.4 14.7 28 95 Yugou neighborhoo 5.2 5.2 4.5 4.5 9.7 15 54 K57+200~K67+730 Yugou d committee Lingbi Zhangzhai 9.2 9.2 5.4 5.4 14.6 31 119 Youwei 8.9 8.9 6.8 6.8 15.7 23 76 Dazhangli 5.4 5.4 9.1 9.1 14.5 21 71 k67+730~k80+090 Youji Youxi 4.5 4.5 4.5 4.5 9 13 49 Youdong 6.2 6.2 8.8 8.8 15 23 76 Zhangshan 19 19 3.6 3.6 22.6 35 123 k80+090~k90+800 Xieji Xieji 15.4 15.4 10.2 10.2 25.6 41 139 Matai 3.6 3.6 8.4 8.4 12 18 73 Landong 4.1 4.1 6.4 6.4 10.5 16 62 Yongqiao k90+800~k100+620 Langan Hancun 7.8 7.8 5.6 5.6 13.4 27 102 Kanting 2.8 2.8 0 0 2.8 3 11 k100+620~k104+23 Zhihe Tuanjie 3.2 3.2 7.2 7.2 10.4 16 57 0 k104+230~k106+99 Caocun Minxian 8.2 8.2 1.4 1.4 9.6 13 47

Land occupied temporarily Other land occupied Temporarily affected Districit/county Pile No. Town /xiang Village for borrow pits(mu) temporarily Total population Dry land Subtotal Dry land Suntotal Household person 8 Zhangzhuan 5.4 5.4 2.2 2.2 7.6 9 33 g Tatal 173.6 173.6 156.4 156.4 330 542 1921

2.6 Demolition of residential houses and impact analysis All residential houses demolished in the project are rural residential houses. 8820.36 m2 of residential houses will be demolished, including 837 m2 of the masonry concrete structure (I), 2980 m2 of the masonry concrete structure(II), 139.9 m2 of the masonry concrete structure (III);769.25 m2 of the masonry timber structure (I), 1507.9 m2 of the masonry timber structure (II), 1605.74m2 of the masonry timber structure (III)and 980.33 m2 in the other structure, affecting 494 people out of 134 households, of which 134 people out of 35 households are also affected by land acquisition. Based on the survey, the subproject has little impact of house demolition, and some towns (e.g., Dazhuang and Sixian) have defined planning control lines for X056 (50m along the road) and made extensive propaganda. In addition, when building their houses, the affected households had already considered the possibility that the existing roads might be broadened, and kept their houses at a certain distance from X056. The residential houses to be demolished in the subproject are shown in

Table 2-9 Summary of Rural Residential Houses Affected by Demolition Person also affected Demolition of residential house Affected person by land acquisition Masonr Masonr Masonr District/count Town/xian y y y Masonr Masonr Masonr Pile No. Village y g concret concret concret y timber y timber y timber Househol Peopl Househol Peopl Others Total e e e structur structur structur d e d e structur structur structur e (I) e (II) e (III) e (I) e (II) e (III) K0+000~K0+510 Shantou 196 72.8 215.65 484.45 5 19 4 15 K4+920~ K7+060 Shantou K8+020~ K11+120 Luochang 132.3 132.3 2 5 0 0 K0+510~ K4+920 Liuwei Gaodu 0 0 0 9 9 1 3 0 0 K7+060 ~K8+020 Zhanglou 123 21.12 144.12 6 22 0 0 K11+120~K17+180 Wafang Changwei 378 60.4 438.4 7 24 1 3 Sixian Guoji 18 18 2 7 0 0 Dongfeng 174 174 3 10 1 3 K17+180~K27+110 Dazhaung Jiebei 63 63 1 4 1 4 Hexie 172 392 10.5 574.5 10 42 5 19 Gonggou 40 40 1 4 0 0 K27+110~ K38+040 Huangwei Huaxin 50 50 1 3 0 0 Hongxing 24 44.6 68.6 3 8 3 8 Fengmiao K38+040~K48+160 Fengmiao neighborhoo 239.25 266.05 143.84 649.14 11 40 2 5 d committee K57+200~ K67+730 Yugou Zhenglou 175 0 80 46.9 0 15 316.9 5 17 0 0 Lingbi 1078.6 Youwei 60 963.1 55.56 22 78 1 4 6 K67+730 ~K80+090 Youji Lilou 140 106.8 246.8 4 15 0 0 Zhangdongh 67.1 35 102.1 1 5 1 3 u K80+090~K90+800 Xieji Zhangshan 222 434 45 701 7 26 2 8 Landong 150 528 160 209.5 1047.5 11 23 3 5 K90+800~K100+62 Langan Lanxi 210 872.5 123.4 1205.9 18 83 6 23 0 Yongqiao Hancun 59 456 321 836 9 41 3 11

K104+230~ Caocun 427.74 12.25 439.99 4 15 2 9 K106+998 Zhangzhuan g 980.3 8820.3 Total 837 2980.24 139.9 769.25 1507.9 1605.74 134 494 35 120 3 6

Among the households affected by the demolition of residential houses, 27 household has a demolition area of 20 m2, accounting for 20.15%, 34 household (25.37%) 21-50 m2, 51 households (38.06%) 51-100 m2, 22 households (16.42%) 101-150 m2 and 36 households (42.4%) 151 m2 or more. Table 2-10 Degrees of Impact of Demolition of Residential Houses Households 21 51 101 District Town <2 Pile No. Village ～～～ >15 subtot /county /xiang 0 50 100 150 1 ㎡ al ㎡㎡㎡㎡ K0+000~K0+510 Shantou 1 3 1 5 K4+920~K7+060 Shantou K8+020~K11+120 Luochang 2 2 K0+510~ K4+920 Liuwei Gaodu 1 1 K7+060~ K8+020 Zhanglou 2 4 6 K11+120~K17+180 Wafang Changwei 1 2 3 1 7

Sixian Guoji 2 2 Dongfeng 3 3 Dazhuan K17+180~K27+110 Jiebei 1 1 g Hexie 3 3 2 2 10 Gonggou 1 1 Huangw K27+110~K38+040 Huaxin 1 1 ei Hongxing 1 2 3 Fengmiao Fengmia K38+040~K48+160 neiborhood 5 2 1 3 11 o committee K57+200~K67+730 Yugou Zhenglou 1 1 3 5 Lingbi Youwei 7 8 6 1 22

K67+730~K80+090 Youji Lilou 4 4 Zhangdong 1 1 hu K80+090~K90+800 Xieji Zhangshan 2 5 7 Landing 1 3 4 3 11 K90+800~K100+62 Langan Lanxi 2 4 8 4 18 Yongqia 0 o Hancun 1 5 3 9

K104+230~K106+9 Zhangzhuan Caocun 1 3 4 98 g

Total 27 34 51 22 0 134

2.7 Affected infrastructure and ground annexes

The subproject affects 14 types of infrastructure and ground annexes, including public toilets, telegraph poles and transformers, as shown in Table 2-11.

Table 2-11 Affected Ground Annexes 380V Pumped Big Small 10KV 380V Tractor Commu Public wooden Transf Power wells, large trees trees Scattered Xiang telegraph telegraph Canals plowing Tombs nication County Pile No. Village toilets telegraph ormers cables opening (non (non fruit trees /town poles poles roads cables poles wells fruit) fruit) / / / / / m2 m2 / M M / / / / K0+000 ～ Shantou 0 0 10 0 0 120 80 2 0 5 1 112 23 3 K0+510 K4+920 ～ Shantou K7+060 Luochang 2 0 7 0 3 120 120 0 0 4 0 98 14 0 K8+020 ～ K11+120 K0+510 ～ Xima 0 15 0 4 110 0 4 0 0 25 8 4 K4+920 Liuwei K7+060 ～ Gaodu 2 2 4 0 8 240 45 1 0 0 3 74 0 0 K8+020 Changwei 1 12 5 20 0 0 0 0 26 0 0 Sixian K11+120 ～ Wafang Zhanglou 0 0 8 0 0 150 25 0 0 15 0 63 0 3 K17+180 Guoji 0 0 8 0 8 35 0 0 0 1 36 0 0 Hexie 0 1 17 2 120 50 0 0 0 0 70 24 2 K17+180 ～ Dazhuan Dongfeng 1 2 10 0 2 0 40 0 0 0 0 75 0 0 K27+110 g Dazhuang 0 1 10 0 1 0 35 0 0 13 0 23 0 0 Wan’an 0 7 2 0 0 0 135 0 2 0 0 53 0 0 Gonggou 0 6 5 0 0 0 125 0 0 0 0 84 0 0 Huaxin 0 10 0 0 120 110 0 0 0 0 88 28 0 K27+110 ～ Huangw Caochang 1 2 15 0 4 45 0 0 5 0 90 22 0 K38+040 ei Wangzhai 2 7 0 3 120 30 0 0 2 54 0 0 Hongxing 15 0 4 35 1 5 0 0 74 0 6 Fengmiao K38+040 ～ Fengmia Neighborhood 2 2 7 0 8 240 40 0 0 0 2 37 0 1 o K48+160 Committee K57+200 ～ Zhangzhai 0 0 38 0 150 45 2 0 15 0 79 34 0 Lingbi Yugou K67+730 Zhenglou 0 0 8 0 8 0 25 0 0 0 0 65 0 0 Lilou 0 0 10 0 0 120 35 0 8 0 0 99 39 0 K67+730 ～ Youji Youdong 1 2 50 0 4 0 40 0 0 0 1 143 31 0 K80+090 Youxi 2 0 7 0 3 120 105 0 0 0 0 112 0 2

380V Pumped Big Small 10KV 380V Tractor Commu Public wooden Transf Power wells, large trees trees Scattered Xiang telegraph telegraph Canals plowing Tombs nication County Pile No. Village toilets telegraph ormers cables opening (non (non fruit trees /town poles poles roads cables poles wells fruit) fruit) / / / / / m2 m2 / M M / / / / Youwei 0 0 15 0 4 0 100 0 10 15 0 37 0 0 Zhangdonghu 2 2 4 0 8 240 40 1 0 0 0 69 5 0 Dazhangli 0 1 12 5 0 0 65 0 0 0 0 26 0 0 K80+090 ～ Zhangshan 0 0 8 0 0 150 35 0 5 0 0 63 0 0 Jieji K90+800 Matai 0 0 8 0 8 0 45 0 0 21 4 36 0 0 Landong 0 1 17 2 0 120 40 0 0 0 0 78 16 0 Lanxi 1 2 10 0 2 0 50 0 10 0 0 63 12 0 K90+800 ～ Langan Anshui 0 1 10 0 1 0 45 1 0 4 0 23 0 5 Yongqia K100+620 Hancun 0 7 2 0 0 0 25 0 0 0 1 53 0 2 o Kanding 0 1 6 0 0 0 50 4 15 0 0 63 0 0 K100+620 ～ Zhihe Tuanjie 0 6 5 0 0 0 60 0 0 15 0 84 0 2 K104+230 K104+230 ～ Minxian 0 0 10 0 0 120 65 0 10 0 0 87 29 0 Caocun K106+998 Zhangzhuang 1 2 15 0 4 0 50 1 0 0 1 112 0 0

2.8 Affected Persons

2.8.1 Summary

The subproject will affect 4187 people out of 1190 households in total, in which 3693 people out of 1056 households are affected by the acquisition of collective land only, 120 people out of 35 households are affected by both house demolition and land acquisition, 374 people out of 99 households are affected by house demolition only, and 1921 people out of 542 households are affected by temporary land occupation. The population affected by the subproject is shown in

Table 2-12 Summary of Affected Population County Sixian Lingbi Yongqiao Total Town 5 3 4 12 Village 16 12 12 40 land occupation Households 250 337 469 1056 only Population 864 1166 1663 3693 House demolition Households 27 39 33 99 only Population 99 143 132 374 Direct impact on Both land Households 15 4 16 35 population occupation and Population 52 12 56 120 house demolition Households 292 380 518 1190 Total Population 1015 1321 1851 4187 Households 188 176 178 542 Temporary population Population 663 611 647 1921

2.8.2 Affected vulnerable groups

For the purpose of the project, vulnerable groups mean the disabled, Wubao, widows, low-income or poor person and ethnic minorities. Based on the survey, the affected population is composed entirely of Han people. The main vulnerable groups affected by the Project are the disabled, Wuhao, widows and low-income persons1. According to the survey, it is estimated that 108 people of 26 households (including 15 people of 4 are disabilities, 52 people of 12 households are Wubao (Five Guarantees) 2 , 37 people of 9 households are low-income and 4 people of 1 households are widows) fall into vulnerable groups and need special attention. The affected vulnerable groups are shown in

1 the annual per capita net income is below 1067 yuan

2 “Wubao” refers to the person who not only loses the labor abilities and income, but has no dependent person regulated by laws. The “Wubao” could get the subsidies or assistance from government as follows: 1) Grain and oils, subsidiary food and fuel; 2) Living goods including clothes, quilt etc, and pocket money; 3) Basic residential housing, 4) Medical subsidies; 5) Funeral affairs

Table 2-13. The vulnerable groups affected by the project will be further identified based on their family structure, labor employment, family resources possessed and other objective conditions, and the information mastered by the local civil affairs authorities. Once any affected household is identified as a vulnerable group, the implementing agencies will offer special assistance during the implementation of resettlement.

Table 2-13 Summary of Affected Vulnerable Groups Low income or poor Wubao house Disability Widows Total County/ Town/ people Village Affected Affected Affected Affected Affected Affected Affected Affected Affected Affected district Xiang house house house house house population population population population population -holds -holds -holds -holds -holds Zhenglou 0 0 1 1 0 0 1 5 2 6 Yugou Yugou 3 13 0 0 1 4 1 3 5 20 Zhangdonghu 2 9 0 0 0 0 1 5 3 14 Lingbi Lilou 2 8 0 0 0 0 1 2 3 10 Youji Dazhangli 1 3 0 0 0 0 1 3 2 6 Youxi 2 12 0 0 0 0 1 3 3 15 Youji 1 5 0 0 0 0 1 4 2 9 Lanxi 1 2 1 4 0 0 2 5 4 11 Langan Anshui 0 0 0 0 0 0 0 1 0 1 Yongqiao Hancun 0 0 1 6 0 0 1 2 2 8 Caocun Minxian 0 0 1 4 0 0 1 3 2 7 Total 12 52 4 15 1 4 9 37 26 108

2.8.3 Affected women

Among the affected people surveyed, there are 503 women, accounting for 45.3% of total population. Among the rural households affected by land acquisition, there is only one household composed mainly of single female labor resulting from bereft of spouse, and the main sources of income of this household is crop cultivation and stockbreeding. According to the survey, the affected women enjoy the same legal rights as men, including contracting of arable land, receiving education, family planning, participation in election, etc. Most of the interviewed female laborers think they have the same autonomy in production and operation as men, and can elect to work or do small business freely. Of course, men and women play different roles in family life and production. More women do housework, bring up children, deal with household sidelines (e.g., household cultivation), and work at manual manufacturing plants, while men deal with transport or work mainly. Generally, the working hours of women are 1.2 times those of men. The impact on the affected women’ income comes mainly from the reduction in agricultural production arising from the acquisition of arable land and the impact on household cultivation arising from house demolition, while the per capita income from crop cultivation and stockbreeding is up to 1,606.6 yuan/person, accounting for 31.8% of household income. In terms of education, boys and girls enjoy equal opportunities in receiving education, and as long as children study hard, their parents would do their best to support their school education. According to the survey, women have the same concerns as men: (a) The compensation standards should be based on land output and resettlement cost; and (b) The compensation fees should be paid directly to the affected rural households based on their needs. Women have the following needs that are different from men: (a) Women ask for an equal degree of cash compensation and land replacement; (b) Women ask for training on crop cultivation, stockbreeding and manual work; and (c) In most households, men play a dominant role in participation, while women also expect to participate in village-level management. See Appendix 2 (Part A) for the gender analysis.

3 Social and Economic Profile

3.1 Social and economic profile of affected areas

3.1.1 Social and economic profile of affected city and counties The subproject involves Suzhou City and its Yongqiao District, Lingbi County and Sixian County. Their social and economic conditions are as follows: Suzhou City—Suzhou City is located at the north gate of Anhui, the south tip of the Huang-Huai Plain, the hinterland of the Huaihai economic region and the west edge of the Yangtze River Delta economic zone, and is the leader of the Longhai economic zone and the bridgehead of the Eurasian Continental Bridge. By the end of 2009, the city had a land area of 9939.8 km2 and a resident population of 6.3519 million out of 1.7206 million households. Yongqiao District—Yongqiao District is located at the junction of Jiangsu, Henan and Anhui Provinces, and is the largest county-level district of China, the seat of the Suzhou Municipal Government, and the political, cultural, financial, economic and trade center of Suzhou City. By the end of 2009, the district had a land area of 2,868 km2 and a resident population of 1.8386 million out of 429,600 households. Lingbi County—Lingbi County is located in the east of the Huaibei Plain and borders Sixian on the east, Yongqiao District on the west, Guzhen and Wuhe Counties, Bengbu on the south, and Tongshan and Huining Counties, Jiangsu on the north. The county has a land area of 2,054 km2 and a resident population of 1.2122 million out of 299,900 households. Sixian County—Sixian County is located in the northeast of Anhui, the south tip of the Huang-Huai Plain and the junction of 5 counties in Jiangsu and Anhui, close to the coastal region and backing on the Central Plains. By the end of 2009, the county had a land area of 1,787 km2 and a total population of 910,900 out of 235,900 households. The social and economic conditions of Suzhou City and its 3 counties/districts are shown in Table 3-1. Table 3-1 Basic Information of Suzhou City and the 3 Counties (Districts) Per City, Total Land capita GDP Households Per capita net county/ population area arable (billion (10,000) 2 income (yuan) district (10,000) (km ) area yuan) (mu) Suzhou 172.06 635.19 9939.8 1.13 541.7 4076.34 City Yongqiao 52.96 183.86 2868 1.90 219.9 4193.38 District Lingbi 29.99 121.22 2054 1.49 78.1 4000.76 County Sixian 23.59 91.09 1787 1.45 73.6 4144.74

3.1.2 Social and economic profile of affected towns (sub-districts) The subproject involves 5 Xiangs/towns in Sixiang County, 3 Xiangs/towns in Lingbi County and 4 Xiangs/towns in Yongqiao District, 12 Xiangs/towns in total. Their economic conditions are as follows: Shantou Town—This town is located in the northeast of Sixian County, with a total area of about 108,000 mu and a population of 73,600. The town features advantaged geographic location and environment, a solid agricultural foundation and a stockbreeding industry of fine-breed pig, and is a typical major agricultural town in Sixian County, growing 10,000 mu of seedless watermelon. For example, there are

over 1,000 hybrid sows in Xujing Village, which produces 25,000 piglets annually. 20,000 surplus laborers go out for work annually, generating an income of about 150 million yuan. Liuwei Town—This town is located 30km from the northeast of Sixian County, with a total area of 83 km2, a population of 49,500 and an arable area of 76,000 mu. It is located in a fertile plain that abounds with wheat and cotton, and also a production base of seedless watermelon, black bean, and black, red and yellow-hearted sweet potato. The town has 650 enterprises in total, including 10 township enterprises, 15 village-run enterprises and 625 private enterprises. Wafang Xiang—This Xiang is located in the northeast of Anhui, typical of the Huaibei Plain, with a total area of 210 km2 and a population of about 61,400. The Xiang abounds with cheap labor resources, and outputs over 18,000 laborers annually. The Xiang features convenient traffic, and is run through by the Shan-Min Highway that is connected to National Highway 104 on the west, 3km away from National Highway 104 only. Dazhuang Town—This town is located 25km from Sixian Town, Anhui, with a total area of 94.7 km2 and a population of about 66,500. 15,000 mu of mulberry field has been developed in the town, and a production system of mulberry cultivation, sericulture, drying and silk reeling has been created. The town has a wheat-cotton inter-planting area of 35,000 mu, with an annual output of 175,000 loads (one load = 50kg) of ginned cotton, and a fruit planting area of 3,000 mu, with an annual output of 6 million kilograms. The “Hongyuan” crisp pear produced by Xiaosong Village sells to central cities like Shanghai and Nanjing. There are about 280 township and village enterprises in this town, including reeling mills, flour mills, furniture plants, timber processing plants, stone-working plants and sheet processing plants. Huangwei Town—This town is located in the northwest of Sixian County, and borders Lingbi County on the west and Liji Town, Huining County, Jiangsu on the north. The town has a population of 66,100, rich resources and convenient traffic, and is the wheat and cotton production base and sheet processing base of the county. Presently, the town has 335 industrial enterprises of all kinds, with a total workforce of 5,600 and a gross industrial output value of 774 million yuan. Fengmiao Town—This town is located in the northeast of Lingbi County, and borders Dalu and Damiao Xiangs on the north, Dayang Xiang and Huangwei Town, Sixian County on the south and the Xinsui River on the west, with a south-north span of 22.5km. The Ling-Shuang and Ling-Sui Highways converge in the town, and there is a developed network of rural highways and watercourses, providing very convenient traffic. The town has a population of about 72,000 and an arable area of 102,000 mu. There are 25 enterprises in the town, including flour mills, agricultural machinery repair stations, plywood and sheet processing plants. Yugou Town—This town is located in the north of Lingbi County, 41km away from the county seat, 20km away from the Xuzhou Guanyin Airport in the north, run through by Provincial Highway 201, boasting significant geographic advantages. The town has a total area of 90.6 km2 and a population of about 60,000. Mountain land, sand and warp land accounts for 1/3 of its territory each. It is the famous “Town of Chime Stone” of China, and its Lingbi stone ranks first among the 4 major famous stones of China. Youji Town—This town is located on the midpoint of Provincial Highway 201 between Lingbi and Xuzhou, 45km away from the seat of Lingbi County in the south and Xuzhou in the north each. The town borders Zhuji Town in the south, Xialou Town in the north and Yugou Town in the east. The town has a population of 53,000 and a total area of 82.21 km2. Youji is a major town of commerce and trade, where the 4 pillar industries of automobile transport, flour processing, commercial distribution and stockbreeding have come into being. Jieji Xiang—This Xiang is located in the northeast of Yongqiao District, 40km away from the urban area. The Xiang has a total area of 108.5 km2 and a population

of about 50,000. The minerals include copper, iron and marble, etc. The township enterprises deal mainly with commerce and trade, marble carving, reed matting and wickerwork. The farm products include wheat, paddy rice, soybean, corn, sweet potato, cotton, tobacco leaf and oils, etc. Langan Town—This town is located in the northeast of Yongqiao District, 50km away from the urban area. The town has a total area of 134.5 km2 and a population of 67,000. The minerals include marble, copper ore and limestone, etc. Gingko, hawthorn, peach, pear, apple and economic forests are widely planted. The farm products include wheat, soybean, corn, sweet potato, cotton, tobacco leaf and oils, etc. The township enterprises deal mainly with commerce and trade, architecture, building materials, cotton ginning and quarrying. Zhihe Xiang—This Xiang is located in the central north of Yongqiao District, 45km away from Suzhou and Xuzhou in the south and north respectively, boasting convenient traffic and rich resources. The Xiang abounds with high-grade wheat, high-grade cotton, high-grade soybean, high-grade watermelon, high-grade carrot and high-grade poplar. The Xiang has a total area of 69.5 km2 and a population of 34,000. Caocun Town—This town is located in the north-most point of Anhui and at the junction of 3 counties in 2 provinces. The town has a population of 62,000 and a total area of 122.64 km2, abounds with resources and products, such as the “Minzi aromatic rice” and the “Songhu Lake characteristic sweet potato”, and is the main production base of wheat, cotton and oils of Yongqiao District. The minerals include coal, kaolin and dolomite, etc. The town has 4 large-scale enterprises and 40 small and medium enterprises, including brickyards, pebble processing plants and building material plants. The economic conditions of the affected Xiangs and towns are shown in Table 3-2. Per capita net Arable Per capita County/ Town/ Agricultural income of Households Population Men area arable area district Xiang population farmers (mu) (mu/person) (yuan/person) Shantou 17746 73615 38206 68315 129180 1.75 3028 Liuwei 13636 49458 25669 45897 90455 1.83 2980 Sixian Wafang 13853 61418 31876 56996 106327 1.73 3010 Dazhuang 15707 66483 34505 61696 99492 1.50 3120 Huangwei 17218 66107 34310 61347 97280 1.47 3022 Fengmiao 17497 77692 40322 72098 101607 1.31 3591 Lingbi Yugou 15568 64366 33406 59732 94650 1.47 3789 Youji 13426 55092 28593 51125 81000 1.47 3650 Jieji 14221 56687 29421 52606 106440 1.88 3530 Langan 17984 72413 37582 67199 104490 1.44 3680 Yongqiao Zhihe 9361 35319 18331 32776 55365 1.57 3212 Caocun 17935 64620 33538 59967 93165 1.44 4220

Table 3-2 Economic Indicators of Affected Towns 3.1.3 Social and economic profile of affected villages The subproject will affect 39 villages in 12 Xiangs/towns. The 39 affected villages have a population of 3.01-5.4 per household, a per capita arable area of 0.40-2.91 mu, and a per capita income of 2703-3663 yuan. The traditional crops of the affected villages are mostly wheat, cotton and corn, and the villages have their respective characteristics. For example, nearly 300 households in 4 villages of Wafang Xiang deal with crop cultivation focused on common Cultivatea mushroom; many villages of Liuwei Town are production bases of seedless watermelon, black bean, and black, red and yellow-hearted sweet potato. Meanwhile, many villages of Wafang Xiang,

Shantou Town and Yugou Town have a developed stockbreeding industry. The main nonagricultural industries of the villages of Caocun and Yugou Towns are coal production, quarrying and pebble processing mainly. The social and economic conditions of the affected villages are shown in Table 3-3.

Table 3-3 Economic Indicators of Affected Villages Per capita Per capita net County/ Xiang Arable area Per household Village Households Persons Including male Labor force arable area income district /town (mu) population (mu/person) (yuan/person) Shantou 893 4530 2350 2718 4851 5.1 1.07 3084 Shantou Luochang 902 4678 2439 2871 4910 5.2 1.05 3112 Xima 1076 3585 1830 2151 6347 3.3 1.77 3170 Liuwei Gaodu 932 4782 2653 2910 5012 5.1 1.05 3098 Changwei 1089 4620 2389 2772 6850 4.2 1.48 3320 Wafang Zhanglou 987 4320 2189 2512 5812 4.4 1.35 3219 Guoji 1158 4924 2567 2954 7245 4.3 1.47 3650 Dongfeng 1706 6397 3349 3838 9429 3.7 1.47 3302 Sixian Jiebei 1479 5390 2815 3234 6320 3.6 1.17 3663 Dazhuang Hexie 1232 4955 2498 2973 6434 4 1.3 2946 Wan’an 1282 5030 2616 3018 6296 3.9 1.25 2999 Caochang 1246 4881 2538 2929 6030 3.9 1.24 3342 Gonggou 1012 4578 2187 2747 6501 4.5 1.42 3112 Huangwei Huaxin 1123 4892 2487 2935 6989 4.4 1.43 3089 Wangzhai 1156 4555 2369 2733 5720 3.9 1.26 3267 Hongxing 1294 5237 2659 3142 6310 4 1.2 3192 Fengmiao 1191 6488 3374 3893 2577 5.4 0.4 3310 Fengmiao Houzhu 1287 5154 2680 3092 6120 4 1.19 3534 Mugu 1033 4618 2401 2771 5943 4.5 1.29 3652 Zhenglou 821 3422 1834 1978 3456 4.2 1.01 3421 Yugou Zhangzhai 117 501 261 301 724.4 4.3 1.45 3470 Lingbi Youwei 761 3044 1583 1826 3235 4 1.06 3305 Dazhangli 551 2812 1356 1687 2891 5.1 1.03 3447 Lilou 357 1316 684 790 2600 3.7 1.98 3342 Youji Zhangdonghu 870 3480 1913 2088 2145 4 0.62 3663 Youxi 193 580 310 348 1690 3 2.91 3556 Youdong 428 1682 892 1009 1818 3.9 1.08 3084 Yongqiao Jieji Zhangshan 1224 4812 2560 2887 6063 3.9 1.26 3267

Per capita Per capita net County/ Xiang Arable area Per household Village Households Persons Including male Labor force arable area income district /town (mu) population (mu/person) (yuan/person) Yunguang 1132 4320 2359 2592 5987 3.8 1.39 3513 Jieji 1246 4913 2565 2948 6136 3.9 1.25 3020 Matai 857 3392 1843 2035 4049 4 1.19 3328 Landong 1423 5900 3032 3540 7035 4.1 1.19 2703 Lanxi 1084 4401 2239 2641 6641 4.1 1.51 3069 Langan Anshui 669 2673 1298 1604 4065 4 1.52 3195 Hancun 843 3491 1910 2095 5295 4.1 1.52 3226 Kanding 1222 4794 2562 2876 7740 3.9 1.61 3427 Zhihe Tuanjie 1150 4116 2320 2470 6975 3.6 1.69 3188 Minxian 991 4086 2510 2452 3825 4.1 0.94 2796 Caocun Zhangzhuang 965 3985 1980 2391 3657 4.1 0.92 2979

3.2 Social and economic profile of affected population

To learn the basic information of the population affected by land acquisition, the social and economic survey team conducted a sampling survey of the affected households. The subproject affects 4187 people out of 1190 households. 260 households were involved in the sampling survey, accounting for 21.85% of all affected households. The sample distribution is shown in Table 3-4.

Table 3-4 Distribution Structure of Sample of Sampling Survey County/ Households Affected Sampling Xiang /town Village district sampled households rate Luochang 5 34 14.71% Shantou Shantou 2 2 100.00% Xima 22 121 18.18% Liuwei Gaodu 1 1 100.00% Changwei 2 9 22.22% Wafang Zhanglou 1 6 16.67% Guoji 1 4 25.00% Dongfeng 1 6 16.67% Sixian Jiebei 2 10 20.00% Dazhuang Hexie 11 58 18.97% Wan’an 3 3 100.00% Caochang 1 5 20.00% Gonggou 1 1 100.00% Huangwei Huaxin 1 1 100.00% Wangzhai 2 10 20.00% Hongxing 5 21 23.81% Fengmiao neighborhood Fengmiao committee 18 83 21.69% Houzhu 6 21 28.57% Mugu 3 3 100.00% Zhenglou 3 5 60.00% Yugou Lingbi Zhangzhai 4 13 30.77% Youwei 12 40 30.00% Dazhangli 18 89 20.22% Lilou 1 5 20.00% Youji Zhangdonghu 8 37 21.62% Youxi 12 53 22.64% Youdong 9 31 29.03% Zhangshan 18 157 11.46% Yunguang 2 12 16.67% Jieji Jieji 9 34 26.47% Matai 12 53 22.64% Landong 12 45 26.67% Lanxi 13 71 18.31% Yongqiao Langan Anshui 3 3 100.00% Hancun 1 9 11.11% Kanding 7 34 20.59% Zhihe Tuanjie 8 33 24.24% Minxian 5 22 22.73% Caocun Zhangzhuang 15 45 33.33%

1) Ethnic and gender analysis The 260 surveyed households have a total population of 1109, a total labor force of 894 and an average household population of 4.25. All the surveyed population is Han people, including 503 women, accounting for 45.3%; women deal mainly with crop cultivation, housework and other productive activities. 2) Age structure Among the 1109 people, 167 are under the age of 18, accounting for 15.0%; 507 aged 18-40, accounting for 45.8%; 386 aged 40-60, accounting for 34.9%; and 48 aged over 60, accounting for 4.3%. See Figure 3-1 for the age structure.

4% 15%

0-18 35% 18-40 40-60 above 60 46%

Figure 3-1 the age sturcture

3) Education Among the 1109 people, 43 are illiterate, accounting for 4.0%; 214 have received primary school education, accounting for 19.3%; 488 have received junior secondary school education, accounting for 44.0%; 216 have received senior / technical secondary school education, accounting for 19.4%; 147 have received college or above education, accounting for 13.3%.

4% 13% illiterate 19% primary school

19% secondary school

senior / technical secondary school college or above 45%

Figure 3-2 the education structure 4) Housing area The 260 surveyed households have a total housing area of 33839 m2, a housing area per household of 129.8 m2, and a per capita area of 30.51 m2. 5) Arable land The 260 surveyed households own 4.71mu of arable land per household or 1.10 mu of arable land per person. The arable land is paddy field and dry land mainly. 6) Household properties Among the 1109 people out of the 260 surveyed households, an average

household owns 1.15 black-and-white TV sets, 0.21 refrigerators, 1.64 electric fans, 0.74 washing machines, 0.14 air-conditioners, 1.07 telephones, 1.08 motorcycles, 0.69 tractors and 0.51 tractors. In terms of household properties, the affected households largely have a medium or low standard of living. 7) Household income and expenditure According to the statistical analysis of the 1109 people out of the 260 surveyed households, per capita annual household income is 4139.2 yuan/person, in which agricultural income is 939.7 yuan/person, accounting for 22.7%; stockbreeding income 666.9 yuan/person, accounting for 16.1%; operating income 1,718.1 yuan/person, accounting for 41.5%; and other income 814.5 yuan/person, accounting for 19.7%. The main sources of income of the farmers mainly include crop cultivation, secondary industries, employment, etc., which is consistent with the local industrial structure in which agriculture and industry are paid equal attention to. Women usually do manual work while farming, while men usually work at a factory or outside. Per capita annual household expenditure is 2370.2 yuan/person, in which household operating expenditure is 289.8 yuan/person, accounting for 21.1%; personal consumption expenditure 1486.7 yuan/person, accounting for 62.7%; tax and charge payment 38.9 yuan/person, accounting for 1.6%; purchase of productive fixed assets 167.4 yuan/person, accounting for 7.1%; and other consumption 389.4 yuan/person, accounting for 16.4%. The sampling survey results of the income and expenditure of the affected households are shown in Table 3-5.

Table 3-5 Analysis of Household Income and Expenditure Per capita Proportion Item (yuan/person) (%) Agricultural income 939.7 22.7 Stockbreeding income 666.9 16.1 Operating income 1718.1 41.5 Other income 814.5 19.7 Annual household income3 Sub-Gross Total 4139.2 100.0 Household operating 289.8 12.2 expenditure Purchase of productive fixed 167.4 7.1 assets Net income4 3682.0 / Personal consumption 1486.7 62.7 expenditure Annual Household 5 Payment of taxes and charges 38.9 1.6 expenditure Other 389.4 16.4 sub-total 2372.2 100.0 Saving6 1767.0 / Source: Baseline survey, 2009.

3 Annual household income= Agricultural income+ Stockbreeding income + Operating income + Other income 4 Net income= Annual household income- Household operating expenditure- Purchase of productive fixed assets 5 Annual household expenditure= Household operating expenditure+ Purchase of productive fixed assets+ Personal consumption expenditure+ Payment of taxes and charges+ other 6 Saving= Annual household income- Household expenditure

8) Willingness for resettlement While conducting the social and economic survey, the survey team also conducted a survey of willingness for resettlement, the results of which are as follows: Awareness: 94.0% of the respondents are aware of the subproject, and 6.0% are unaware; Supportive attitude: 95.0% of the respondents support the subproject, and 5.0% are indifferent; Degree of impact: 80.2% of the respondents think the subproject has no adverse impact; 3.7% think the construction of the subproject will affect traffic; 8.6% think house demolition will cause economic losses to them; and 7.4% think land acquisition may reduce their income. Resettlement for production: 96.4% of the respondents ask for cash compensation without land replacement; 3.6% ask for land reallocation and require that compensation fees should belong to the collective. The public opinion survey is shown in Table 3-6.

Table 3-6 Public Opinion Survey Proportion of selection by affected households (%) No. Question Answer 1 2 3 4 5 Total 1 Are you clear about the subproject? (1) Clear; (2) Not very clear; (3) Unclear 94.0 6.0 0.0 0.0 0.0 100.0 (1) Newspaper; (2) Meeting; (3) Neighbor; (4) 2 Source of the subproject and land acquisition 0.0 13.6 18.5 67.9 0.0 100.0 Social surveyor 3 Do you approve of the subproject? (1) Yes; (2) No; (3) Indifferent 95.0 0.0 5.0 0.0 0.0 100.0 a) State: (1) Yes; (2) No 92.6 7.4 0.0 0.0 0.0 100.0 To whom do you think the subproject is of 4 b) Collective: (1) Yes; (2) No 95.1 4.9 0.0 0.0 0.0 100.0 benefit (multiple choices allowable)? c) Individual: (1) Yes; (2) No 88.9 11.1 0.0 0.0 0.0 100.0 (1) Keeping assets safe; (2) Improving Which benefits do you think the subproject will 5 ecological environment; (3) Increasing 0.0 9.9 90.1 0.0 0.0 100.0 bring to you? income; (4) Other (1) No adverse impact; (2) Impact on traffic conditions due to construction; (3) Possible What adverse impacts do you think will the 6 economic losses due to house demolition; (4) 80.2 3.7 8.6 7.4 0.0 100.0 subproject have on you? Possible reduction of income due to land acquisition; (5) Other adverse impacts Do you know the compensation and 7 resettlement policies for land acquisition and (1) Yes; (2) Somewhat; (3) No 74.1 25.9 0.0 0.0 0.0 100.0 house demolition? During land acquisition and house demolition, 8 will you file an appeal when your lawful rights (1) Yes; (2) No 54.3 45.7 0.0 0.0 0.0 100.0 and interests are infringed upon? (1) Cash compensation without land Willingness for compensation for land replacement; (2) Land reallocation, with 9 96.4 3.6 0.0 0.0 0.0 100.0 acquisition compensation fees going to the collective; (3) Other, specify (1) Secondary and tertiary industries; (2) If you expect cash compensation, what will 10 Work outside; (3) Industrial restructuring; (4) 34.6 46.9 18.5 0.0 0.0 100.0 you do when you receive it? Purchase of insurance; (5) Other, specify What assistance do you expect after land (1) Skills training; (2) Provision of 11 46.9 53.1 0.0 0.0 0.0 100.0 acquisition? employment information; (3) Other, specify

4 Legal Framework and Policies

4.1 Laws, regulations and policies applicable to resettlement

The resettlement policies for the subproject are formulated based on ADB policies and the applicable laws, regulations and policies of China mainly, including: 1) ADB policies ¾ Involuntary Resettlement, November 1995 ¾ Gender and resettlement, February 2003 2) Laws, regulations and policies of the PRC ¾ Land Management Law of the People's Republic of China (effective from January 1, 1999, amended on August 28, 2004) ¾ Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28) (October 21, 2004) ¾ Provisions on Land and Resources Hearing (effective from May 1, 2004) ¾ Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR Fa [2004] No.238) (November 3, 2004) ¾ Measures for the Administration of Preliminary Examination of the Land Used for Construction Projects (Ministry of Land and Resources Order No.27) (November 1, 2004) ¾ Measures on Public Announcement for Requisition of Land (effective from January 1, 2002) 3) Provincial and local policies ¾ Circular of the Anhui Provincial People’s Government on Doing Well in Compensation and Resettlement for Land Acquisition to Protect Farmers’ Lawful Rights and Interests Practically ¾ Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061) ¾ Procedures of Anhui Province on the Implementation of the Land Management Law of the People’s Republic of China (December 1, 2002) ¾ Circular of the Anhui Provincial Finance Department on Farmland Occupation Tax on Highways ¾ Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63)(see Appendix 3) ¾ Notice of transfer of the Opinion on the Implementation of Land Acquisition and House Demolition for Transit Highways of Suzhou Municipality of the municipal communications bureau, land and resources bureau and construction bureau (Su Zheng Fa [2002] No.23) ¾ Interim Procedures of Suzhou Municipality on the Basic Endowment Insurance of Farmers Affected by Land Acquisition (see Appendix 3) ¾ the Notice of the Anhui Provincial Government on the Promulgation of the Compensation Standard for Land Acquisition (APG [2009] No.132 of the Anhui Provincial Government).

4.2 ADB policies

The three important elements of the involuntary resettlement policy are (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 restoration 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 providing 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 affected people to share project benefits. The affected people need to be provided with sufficient resources and opportunities to reestablish 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 restoration. 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 social harmony is promoted. (vii) No formal title. Indigenous groups, ethnic minorities, pastoralists, 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) Identification. 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 eligibility cutoff 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 socio-economic 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 restoration, social preparation and livelihood programs as well as the incremental benefits over the without-project situation (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. Where loans include subprojects, components or investments prepared only after project approval and loans through financial intermediaries that are likely to cause involuntary resettlement, sufficient contingency allowance must be allocated for resettlement prior to approval of the loan. Similarly, resettlement plans should also reflect the timeframe for resettlement planning and implementation. (xi) Eligible costs of compensation. Relocation and restoration 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.

4.3 Laws, regulations and policies of the PRC

For the Project, the Land Administration Law of the People’s Republic of China is the major legal basis. Ministry of Land and Resources and Anhui Province have also promulgated some related regulations and policies. The relevant items on resettlement are shown in Table 4-1. The Decision of the State Council on Deepening Reform and Strengthening Land Administration (Ref. GF [2004]28) was issued in Oct. 2004 and sets out (i) the principles of land acquisition compensation and resettlement compensation, (ii) the compensation standards, (iii) land acquisition procedures, and (iv) monitoring system. Correspondingly, Ministry of Land and Resources issued Guidelines for Strengthening Land Acquisition Compensation and Relocation System (Ref. No. [2004] 238). These documents are as shown in Table 4-2. These documents are the key PRC laws and regulations for this Project.

Table 4-1 Abstract of Land Management Law and Relevant Policies Item Key points Index z The People's Republic of China resorts to a socialist public ownership i.e. an ownership by the whole Land people and ownerships by collectives, of land. Land Management Law, Article ownership z The State introduces the system of compensated use of land owned by the State except the land has 2 been allocated for use by the State according to law. z Any unit or individual that need land for construction purposes should apply for the use of land owned Application for by the State according to law;…… Land Management Law, land used for z Whereas occupation of land for construction purposes involves the conversion of agricultural land into Articles 43 and 44 construction land for construction purposes, the examination and approval procedures in this regard shall be required…… z People's governments at all levels shall strengthen the administration of plans for land use and Procedures of Anhui Province exercise control of the aggregate land for construction purposes. If no planning quota for use of on the Implementation of the farmland for other purposes is available or such quota is exceeded, no additional land for construction Land Management Law of the shall be approved. Saved planning quotas for use of farmland for other purposes may be carried over People’s Republic of China to the next year after approval. (June 26, 2004), Article 13 z The acquisition of basic farmland land exceeding 35 hectares outside the basic farmland, and other Land land exceeding 70 hectares shall be approved by the State Council. Land Management Law, Article acquisition z Acquisition of land other than prescribed in the preceding paragraph shall be approved by the people's 45 authority governments of provinces, autonomous regions and municipalities and submitted to the State Council for the record. z The land administrative authorities of a municipal or county people’s government shall draft a plan for Procedures of Anhui Province use of farmland for other purposes, a farmland replenishment plan, a land acquisition plan and a land on the Implementation of the supply plan to the municipal or county people’s government for approval, and escalate them to Land Management Law of the people’s governments with approval authority for approval. In case of acquisition of woodland, the People’s Republic of China consent of the woodland administrative authorities shall be obtained in advance. (June 26, 2004), Article 33 z For the acquisition of land by the State the local people's governments at and above the county level shall make an announcement and organize the implementation after the approval according to the Land legal procedures. acquisition z After the plan for land compensation and resettlement fees is finalized, related local people's Land Management Law, declaration governments shall make an announcement and hear the opinions of the rural collective economic Articles 46, 48 and 49 system organizations and peasants whose land has been acquired. z Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land acquired and accept their supervision.

z In acquiring land, compensation should be made according to the original purposes of the land acquired. z Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be Land Management Law, Article resettled. The number of agricultural population to be resettled shall be calculated by dividing the 47 amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. However, the Compensation maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average standards for annual output value of the three years prior to the acquisition. land z The land compensation fee for acquisiiton of arable land shall be 6-10 times the average output value acquisition of the preceding 3 years of the acquired arable land…… z The resettlement fee for acquisiiton of arable land shall be 4-6 times the average output value of the preceding 3 years of the acquired arable land…… Procedures of Anhui Province z If the farmers to be resettled are unable to maintain their former standard of living, with the approval of on the Implementation of the the provincial people’s government, the resettlement subsidy may be increased. However, the sum of Land Management Law of the the land compensation and the resettlement subsidy shall not exceed the following limit: (1) In case of People’s Republic of China acquisition of arable land, 30 times the average output value of the preceding 3 years of the acquired (June 26, 2004), Articles 36 arable land;…… and 37 z Young crops on the acquired arable land shall be compensated for at the output value of crops of that season; for perennial crops shall be compensated for at their annual output value; no compensation shall be granted if there is no young crop. z Users who use the land temporarily should use the land according to the purposes agreed upon in the Land Management Law, Article contract for the temporary use of land and should not build permanent structures. The term for the 57 temporary use of land shall not usually exceed two years. Temporary z If state land or land collectively owned by farmers is to be used temporarily for project construction or Procedures of Anhui Province land use geologic examination, such use shall be approved by the land administrative authorities of the local on the Implementation of the municipal or county people’s government; temporary land use within the urban planning area shall be Land Management Law of the approved by the urban planning administrative authorities before submission for approval. People’s Republic of China (June 26, 2004), Article 45

Table 4-2 Main Provisions of Guo Fa [2004] No.28 and MLR Fa [2004] No.238 and Application

Guo Fa [2004] No.28—Improvement of compensation and resettlement systems for MLR Fa Su Zheng Fa [2002] Policy for the subproject land acquisition [2004] No.238 No.23 Uniform compensation standards shall apply to The resettlement plan Fixation of both rural and urban land County-level and above local people’s governments shall take shall conform strictly to uniform annual acquired for construction practical measures so that the standard of living of farmers the applicable policies of of transit highways. The output value the state, Anhui Province affected by land acquisition is not reduced by land acquisition. compensation shall standards and Suzhou Municipality. cover all expenses related to land. Land compensation, resettlement subsidy and compensation for ground annexes and crops shall be paid in full and timely Different compensation pursuant to law. If the land compensation and resettlement standards shall apply to subsidy pursuant to the prevailing laws and regulations are rural and urban houses insufficient to maintain the former standard of living of the farmers demolished for construction of transit Article 12 affected by land acquisition or to pay the social security expenses The annual output value Determination highways in Suzhou City; Improvement of of farmers who lose all land due to land acquisition, people’s of acquired land shall of uniform uniform compensation measures for governments of provinces, autonomous regions and conform to the applicable standards shall apply to compensation annual output provisions of Anhui municipalities directly under the Central Government shall both rural and urban land for land value multiples Province. approve an increased resettlement subsidy. If the sum of the land and house annexes acquisition compensation and the resettlement subsidy attains the statutory within the range of house upper limit and is still insufficient to maintain the former standard demolition for of living of the farmers affected by land acquisition, local people’s construction of transit governments may pay a subsidy from the income from highways in Suzhou City. compensated use of state land. The minimum people’s governments of provinces, autonomous regions and Fixation of compensation for municipalities directly under the Central Government shall fix and integrated land acquisition of arable land Compensation for house publish the uniform annual output value standards or integrated prices for land is 16 times annual output demolition: based on land prices for land acquisition of all cities and counties, so that value (including land acquisition actual demolition area, compensation and the same price applies to the same kind of land. For key areas and house type construction projects of the state, land acquisition expenses must resettlement subsidy) All resettlement be listed in the budgetary estimate in full. Distribution of expenses shall be

Guo Fa [2004] No.28—Improvement of compensation and resettlement systems for MLR Fa Su Zheng Fa [2002] Policy for the subproject land acquisition [2004] No.238 No.23 land included in total project compensation investment. County-level and above local people’s governments shall take Resettlement Cash compensation shall specific measures to guarantee long-term livelihoods of farmers for agricultural be granted as displaced affected by land acquisition. production persons may wish. When unskilled workers For projects with a stable income, farmers may become a Resettlement are needed during shareholder using the right to use of land used for construction by project implementation, approved pursuant to law. reemployment priority shall be given to the affected population. Article 13 Within the urban planning area, local people’s governments shall Proper bring farmers who lose all land due to land acquisition into the Surplus labor after resettlement of urban employment system, and establish a social security nearby resettlement and farmers system; out of the urban planning area, in acquiring land Resettlement land acquisition affected by land collectively owned by farmers, local people’s governments shall acquisition by dividend reserve necessary arable land or arrange appropriate jobs for The displaced persons distribution farmers affected by land acquisition within the same shall be provided with administrative area; farmers without land who do not have the technical training. basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines Non-local for the employment training and social security systems for resettlement farmers affected by land acquisition as soon as possible. Carry out detailed social Disclosure of During land acquisition, the ownership of collective land of and economic survey, information on make field measurement, Article 14 farmers and the right to contracted management of farmers’ land Improvement of land Make declaration and and have the displaced shall be maintained. land acquisition acquisition approval as stipulated households confirm the procedures results. Before land acquisition is submitted for approval pursuant to law, Confirmation of Hold a public the use, location, compensation standard and mode of land participation and policy

Guo Fa [2004] No.28—Improvement of compensation and resettlement systems for MLR Fa Su Zheng Fa [2002] Policy for the subproject land acquisition [2004] No.238 No.23 resettlement of the land to be acquired shall be notified to acquisition consulting meeting. farmers affected by land acquisition; the survey results of the survey results present situation of the land to be acquired shall be confirmed by rural collective economic organizations and farmers to be affected by land acquisition; if necessary, the land and resources authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the farmers affected by land acquisition shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over Organization of compensation and resettlement for land acquisition to protect the land Bulletin of land Distribute the acquisition and house resettlement plan or lawful rights and interests of farmers affected by land acquisition acquisition demolition information booklet. and land users. Approved matters of land acquisition shall be hearing disclosed unless in special cases. Disclosure of Conduct internal If the compensation and resettlement for land acquisition has not approval items monitoring and external been implemented, the acquired land shall not be used forcibly. of land monitoring and acquisition evaluation. Payment of Bulletin of land Article 15 People’s governments of provinces, autonomous regions and compensation acquisition and house Strengthening municipalities directly under the Central Government shall and demolition The compensation fees Supervision formulate the procedures for the distribution of the land shall be paid directly to resettlement over the compensation within rural collective economic organizations on the affected villager expenses for implementation the principle that the land compensation is used for rural teams and villagers. of land land households affected by land acquisition mainly. acquisition acquisition Rural collective economic organizations affected by land Post-approval After land acquisition The Suzhou PMO and acquisition shall disclose the receipt, disbursement and allocation supervision and house demolition, the Land and Resources Yongqiao District shall Bureau shall perform of land compensation fees to their members and accept and inspection hand over the legal supervision and supervision. The agricultural and civil affairs authorities shall of land documents, land usage inspection.

Guo Fa [2004] No.28—Improvement of compensation and resettlement systems for MLR Fa Su Zheng Fa [2002] Policy for the subproject land acquisition [2004] No.238 No.23 strengthen the supervision over the allocation and use of land acquisition permit, etc. on land The auditing bureaus of compensation fees within rural collective economic acquisition and house Suzhou Municipality and organizations. demolition to the the affected districts and construction agency for counties shall audit the reference. compensation fees for land acquisition.

4.4 Main differences between ADB policies and laws of the PRC

Compensation for houses ¾ Difference: ADB policies require compensation standards for replacement costs. Laws of the PRC think depreciation is reasonable, and the compensation standard for an old house should be lower than that for a new house of the same structure. ¾ Solution: Compensation standards are based on replacement costs in all ADB financed products. Compensation for land ¾ Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on average annual output value, but may be unrelated to the cost of income restoration. ¾ Solution: The early-stage solution is to provide replacement land, which is hardly possible. Cash compensation is the preferred choice of most people, though they cannot guarantee the reasonable use of these compensation fees. Therefore, ADB needs to further technical support to monitor the income of seriously affected households, especially those of vulnerable groups and assistance should be provided by local governments to assist those who need support. Compensation for resettlement of vulnerable groups ¾ Difference: ADB policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with pauperization. Chinese provisions do not require social analysis, and compensation is based only on the quantity of loss. ¾ Solution: Special funds are available to assist the vulnerable groups, who will be identified during the detailed survey. All measures have been specified in the Resettlement Plan. Consultation and publication ¾ Difference: ADB policies require the affected people are aware of all relevant information, and consulted with as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, the affected people do not play a strong role in project decision-making, and the disclosure period is usually too short. ¾ Solution: Consultation has begun at the early stage (before and during technical assistance). APCD agrees to disclose the Resettlement Plan to the affected people as required by ADB. Lack of legal title ¾ Difference: ADB policies require all demolished houses, whether lawful or unlawful, shall be compensated for at the same standards. According to Chinese laws, people without local registered residence may not be entitled to the same compensation as local people. In addition, the prevailing Chinese laws stipulate that no compensation shall be provided for the acquisition of land and houses of unlawful owners. ¾ Solution: For ADB financed project, all affected people, whether lawful or unlawful, whether having ownership or right to use, will be protected. The same compensation standards will apply as required by ADB. Resettlement monitoring, evaluation and reporting ¾ Difference: ADB requires internal and external resettlement monitoring.

However, there is no such requirement in Chinese laws, expect for reservoir projects. ¾ Solution: Internal and external resettlement monitoring systems have been established for all ADB financed products, and have been included in the Resettlement Plan. The requirements for internal and external reporting are specified in the Resettlement Plan.

4.5 Principles for compensation of the subproject

The principles for compensation and entitlement of the subproject have been formulated in accordance with the laws, regulations and policies of the Chinese government and ADB, with the aim of ensuring that displaced persons can obtain sufficient compensation and assistance measures so that their production and livelihoods are at least restored to pre-displacement levels. The principles for resettlement of the subproject are shown in Table 4-3.

Table 4-3 Principles for Resettlement of the Subproject Principles 1 Involuntary resettlement should be avoided where feasible. The affected people are granted compensation and rights that can at least 2 maintain or even improve their livelihoods in the absence of the project. The affected people are given compensation and assistance in resettlement 3 whether legal title is available or not. If the land available to everyone is insufficient to maintain his/her livelihood, 4 replacement in cash or in kind and other income-generating activities are provided for the lost land. The affected people fully understand their entitlements, the method and standard 5 of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan. No land should be acquired before the affected people are satisfied with the 6 compensation and resettlement (plan). People should not be displaced until the allocation of a housing plot has been agreed upon. The executing agency and an independent agency / third party should monitor 7 the compensation, relocation and resettlement operations. The vulnerable groups (including women) are provided special assistance or 8 treatment so that they lead a better life, and all affected people should have an opportunity to benefit from the project. The Resettlement Plan must be consistent with the master plans of the affected 9 counties and towns. 10 The resettlement expenses are sufficient to cover all affected aspects.

4.6 Cut-off date of compensation

The cut –off date for eligible compensation will be determined according to the actual project progress in affected areas. Newly reclaimed arable land, newly built houses or settlement in the affected areas of the affected people will not be included in the scope of compensation or subsidy after the cut-off date. Any house built or tree planted for extra compensation only will not be included.

4.7 Determination of compensation standards for resettlement impacts of the subproject

4.7.1 Acquisition of collective land According to the Land Management Law of the People’s Republic of China, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the policies and regulations of Anhui Province on the implementation of the Land Management Law of the People’s Republic of China, the Notice of the Anhui Provincial Government on the Promulgation of the Compensation Standard for Land Acquisition ,the compensation fees for the acquisition of arable land include land compensation, resettlement subsidy and crop compensation. For this subproject, land acquisition will be compensated based on the compensation rates specified in the Notice of the Anhui Provincial Government on the Promulgation of the Compensation Standard for Land Acquisition of Anhui Province. The compensation standards for the acquisition of rural collective land of the districts and counties are shown in Table 4-4.

Table 4-4 Compensation Multiples and Standards for Acquisition of Collective Land of the Cities (Counties) Farmland Construction and unused land Distr Annual Land ict Resettle Crop Compensa Land Resettlem Compensa Town output compe /cou ment compens tion compensat ent tion value nsatio nty subsidy ation standard ion subsidy standard n Dazhuang, Liuwei, Sixi Huangwei, 1480 6 14 850 30450 5 5 14800 an Shantou, Wafang Fengmiao, 1420 7 14 850 30670 5 5.5 14910 Ling Yugou bi Youji 1360 7 14 850 29410 5 5.5 14280 Langan, Yon 1430 7 14 850 30880 5 5.5 15015 Zhihe gqia Jiejie, o 1350 7 14 850 29200 5 5.5 14175 Caocun

4.7.2 Compensation for temporary land occupation Land temporarily occupied for borrow pits will be compensated for at a time, while other temporarily occupied land will be compensated for at the annual output value of the land for the period of impact. Compensation fees for temporary land occupation include compensation for young crops/ground attachments, and land reclamation compensation. To reduce the impact of land acquisition on young crops, the subproject will be constructed after harvest or before seeding as the case may be. According to the construction design, the period of temporary land occupation is 2 years. The compensation standards for temporary land occupation are shown in Table 4-5.

Table 4-5 Compensation Standards for Temporary Land Occupation Type Unit Land type Sixian Lingbi Yongqiao Remarks Land occupied

temporarily for Dry land 12,000 12,000 12,000 yuan/mu borrow pits Ordinary land yuan/mu· year 4,000 4000 4,000 Based on 2 years occupied

Type Unit Land type Sixian Lingbi Yongqiao Remarks temporarily

Land reclamation Dry land 4,000 4,000 4,000 fee yuan/mu

4.7.3 Compensation standards for rural house demolition The compensation standards for houses of different types shall be determined according to the pertinent provisions by reference to the actual prices of the main types of the affected houses and the compensation standards for similar past projects, as shown in Table 4-6. Meanwhile, the housing plot will be provided and allocated prior to house demolition. The location of new residential plots will be decided by villages and APs.

Table 4-6 Compensation Standards for Rural Residential Houses and Annexes Sixian Lingbi Yongqiao Category Structural type Unit Remarks rate (yuan/ unit) Masonry m2 concrete (I) 630 630 630 Masonry m2 concrete (II) 580 580 580 Masonry m2 concrete (III) 530 530 530 Masonry House m2 timber (I) 530 530 530 compensation Masonry m2 timber (II) 480 480 480 Masonry timber m2 (III) 430 430 430 Others (lower than Masonry m2 timber (III)) 380 480 480 2 Moving subsidy yuan /m 3 3 3 Other Living compensation allowance for yuan/㎡·month Based on transition period 3 3 3 6 months

4.7.4 Compensation for annexes and infrastructure The compensation standards for annexes and infrastructure affected by the subproject shall be determined on the replacement cost principle, as shown in Table 4-7.

Table 4-7 Compensation Standards for Annexes and Infrastructure Sixian Lingbi Yongqiao Item Unit Compensation standard Public toilets yuan/piece 180 180 180 10KV telegraph poles yuan/piece 1500 1500 1500 380V telegraph poles yuan/piece 100 100 100 380V wooden telegraph yuan/piece 50 50 50 poles Transformers yuan/piece 20000 20000 20000 Canals yuan/m2 150 150 150 Highways yuan/m 100 100 100

Sixian Lingbi Yongqiao Item Unit Compensation standard Tractor plowing roads yuan/m2 80 80 80 Tombs yuan/piece 300 300 300 Communication cables yuan/m 80 80 80 Power cables yuan/m 40 40 40 Pumped wells, large yuan/piece 2000 2000 2000 opening wells Big trees (non fruit) yuan/piece 10 10 10 Small trees (non fruit) yuan/piece 6 6 6 Scattered fruit trees yuan/piece 30 30 30

4.7.5 Standards for other costs The standards for other costs are shown in Table 4-8.

Table 4-8 Tax Standards for Resettlement of the Subproject Charging standard No. Item Unit Basis/remarks Sixian Lingbi Yongqiao Wan Farmland 2 1 yuan /m2 2 2 Nongcun[2008] occupation tax No.367 Farmland 8` Wan Cai Zong 2 yuan /m2 6 6 reclamation fee7 [2001] No 1061 Land acquisition 3 4% of total land acquisition expenses management fee Surveying, design 4 and research 3% of total land acquisition expenses expenses Administrative 5 5% of total land acquisition expenses expenses Technical training 6 3% of total land acquisition expenses expenses External monitoring 7 and evaluation 2% of total land acquisition expenses expenses 10% of the total amount of land acquisition Contingency expenses, design fees, implementation 8 expenses management fees, training and monitoring expenses

4.7.6 Vulnerable groups In addition to the above compensation policy for land acquisition, the vulnerable groups affected by the subproject are also entitled to some other preferential policies: (1) Vocational training will be given to the labor force in the households of vulnerable groups, and employment information and guidance will also be provided to increase their job opportunities; (2) During the construction of the subproject, the labor force in the households of

7 70% of this money will be used to upgrade or reclaim marginal farmland in rural areas of Anhui, which will benefit poor people; this is the government’s uniform plan.

vulnerable groups will be given priority to in the recruitment for unskilled jobs; (3) A special supporting fund will be set up in cooperation with the labor and social security bureau of each county (district) to provide assistance at 1% of the resettlement expenses of the subproject. (4) Small and simple houses are to be replaced using a minimum house standard for exchange house, or minimum compensation, or free labor supports. (5) When possible, replacement land should be arranged for vulnerable groups in the priority, if that is the desire of the AP. The detailed entitlements are shown in Table 4-9. 4.7.7 Special measures for women In addition to the standard compensation policy for land acquisition, the women are also entitled the following special measures: 1) Opportunities for employment are available, so a target has been for 30% of the unskilled job opportunities created by the Project will be provided to women. 2) The priority in receiving free technical training is available. 8,000 persons will be trained, with not less than 4,000 famales (50%). 3) The affected people women will be provided relevant information during resettlement, and will be encouraged to participate in consultation and resettlement activities. During the resettlement implementation, focus group discussions with affected women will be managed by the AHAB and local government officials to explain the regulations and improve women’s awareness. 4) Compensation agreement must be signed by both spouses. See details in Appendix 2-Part B Gender analysis of women during resettlement.

4.8 Entitlement matrix

Table 4-9 Entitlement matrix Type of Degree of impact Owner Compensation and resettlement policy Implementation issues impact Village meetings to be responsible for deciding on the allocation of 1) Land compensation, resettlement subsidy and 33 villages of 12 funds, the redistribution of land and compensation for collective properties will be paid directly to Xiangs/towns; investment in income generating the village collective economic organization or village activities such as improved Permanent committee 540.49 mu of collective cultivation techniques/ irrigation/ land land small business development/ acquisition training. Higher level authorities to approve 1813 people out of 2) Resettlement subsidy will be paid. and monitor village level proposals 1091 affected 3) Ground annexes and crop compensation will belong to and, if required to facilitate training households their respective owners. programs 1) Based on the period of occupation and the amount of loss, including crop compensation and reclamation fee, with a Notified in advance and paid Temporary 330 mu of temporarily 1921 people out of 542 maximum occupation period of 2 years. accordingly. Restoration of land will land occupied land affected households be monitored by the farmers and occupation 2) After the end of land occupation, the land will be restored local land bureaus. to the original condition, and appropriate economic compensation will be granted.

1) House compensation: calculated at replacement costs of different structural types and quality standards Demolition 2) The affected people will receive a moving subsidy and a of 8820.36 m2 of rural 1921 people out of 542 Village and APs to decide on transition fee. residential houses will be demolished households location of new residential plots.. 3) A housing plot will be provided and allocated prior to house houses demolition 4) House registration fees are waived

1897 women in affected 1) Opportunities of prior employment are available, and 30% Women's federation will arrange Women / households of unskilled job opportunities created by the Project will be awareness education

Type of Degree of impact Owner Compensation and resettlement policy Implementation issues impact provided to women. 2) The priority in receiving free technical training is available. 8,000 persons will be trained, with not less than 4,000 females (50%) . 3) The affected people can have access to relevant information during resettlement, and participate in consultation and resettlement. 4)Compensation agreement must be signed by spouses. 1) Collective retains land compensation and resettlement subsidy and provides monthly allowances and medical 1) Disabled, Wubao and 71 people out of 17 expenses are free to Wubao Widows households 2) Special allowances provided to the Disable 3) Priority of training and employment to labor force in these households

1) Skill training will be provided to 2 family members, at least 2) low-income or poor one by female. And Priority employment (such as outside 37 people out of 9 households (under the jobs or work for the Project construction) will also be 1% of total basic resettlement cost households national poverty line) provided. has been budgeted for these Vulnerable 2) provided pension by local government special measures, and this amount groups could be increased using 1) Skill training will be provided to 2 family members, at least contingencies. one by female. And Priority employment (such as outside jobs or work for the Project construction) will also be 445 people out of 99 provided. 3) seriously affected households losing 2) When possible, replacement land should be arranged as households above 10% land and 85 priority if desired by the affected household. households 3）Replacement of small and simple house will not be less than the minimum housing standards, or minimum compensation or assistance of providing free labor.

Type of Degree of impact Owner Compensation and resettlement policy Implementation issues impact 1) The affected special facilities will be compensated for by the implementing agencies to property owners, and then Special restored by property owners, or restored by the implementing facilities 14 types, such as Property owner agencies according to the former standard and size.( See and ground telegraph poles and trees Table 4-7) annexes 2) The compensation for ground annexes shall be calculated in accordance with the pertinent provisions. Complaints Free of charge. All costs reasonably incurred will be and / All affected people disbursed from the contingency expenses of the subproject. appeals

5 Resettlement and Income Restoration

5.1 Purpose of Resettlement

The purpose of resettlement of the subproject is to design a resettlement and restoration action plan for the people affected by the subproject, so that they benefit from the subproject, and their standard of living is improved or at least restored after the completion of the subproject.

5.2 Resettlement and restoration plans for affected villages

5.2.1 Introduction of resettlement and restoration plans for affected villages The main impact of the subproject is permanent land occupation mainly. Permanent acquisition of collective land involves 11 villages of 5 Xiangs/towns in Sixian County, 12 villages of 4 Xiangs/towns in Yongqiao District and 10 villages of 3 Xiangs/towns in Lingbi County; 377.05 mu of arable land of 33 villages in 12 Xiangs/towns in total, including 97.4 mu of paddy field and 774.2 mu of dry land. permanent land acquisition is caused by highway construction mainly, the impacts of the subproject are in a linear form. Most of the people affected by land acquisition will lose part of their land only, with a proportion of impact of less than 3%. Therefore, land acquisition has little impact on the agricultural production and income of the rural households (see Section 2.4.2 for the impact analysis of land acquisition). According to the sampling survey of the willingness for resettlement of 260 households, all affected households require cash compensation, and will use the compensation fees for business, crop cultivation, stockbreeding and skills learning mainly. In our field survey, almost all affected rural households welcome the subproject; the affected households think the subproject can improve the traffic conditions and make their production and life more convenient. All affected households require cash compensation for land acquisition, because this method is simple to operate. The affected rural households can use the compensation fees for production and livelihood restoration freely. The construction and land acquisition of the subproject will affect the villages to varying degrees. Therefore, the restoration plan is based on the degree of impact, the availability of the remaining land resources and the willingness of the affected people. Through adequate consultation with the village committee and the affected households during the social and economic survey, different economic restoration options have been defined. As discussed above, for most villagers, the impact of land acquisition is relatively low,, and the degree of impact is even. After the land is acquired, the affected people still have a certain amount of land, so most of them prefer cash compensation. For the affected people, this method will ensure that all compensation and rights get to their hands fully and timely. 5.2.2 General strategy of restoration measures for permanent land acquisition The subproject involves permanent land occupation of 33 villages. The livelihood restoration measures for the displaced persons mainly include: a) Direct cash compensation: Determine the compensation standards for land acquisition and the amount of arable land lost in strict accordance with the applicable state and local policies, and pay compensation fees timely to the affected households directly. The compensation fees received by the affected households can be used to grow cash crops, develop household stockbreeding and to deal with nonagricultural

production activities. b) Improvement of agricultural production conditions: The village collectives will raise funds and use some of the compensation fees for the acquisition of the collective land for infrastructure construction in order to improve agricultural production conditions, increase the output of crops, increase farmers’ income indirectly and improve their standard of living, such as improvement of pumped wells, pump stations, pipelines and other irrigation facilities for farmland, improvement of drinking water facilities for villagers to solve their difficulty in domestic water supply, building village roads, and subsidizing widows. c) Agricultural restructuring: The villages will adjust their crop cultivation and stockbreeding structure using their geographic location and market conditions to increase agricultural income. For example, Jieji Town can expand the cultivation of seedless watermelon and greenhouse vegetables; Caocun Town can increase the planting area of greenhouse vegetables, Dazhuang Town can increase the production scale of green shell eggs. d) Labor transfer: The government may take some relevant measures to support the development of some individual enterprises, such as toy, apparel, machining and other labor-intensive enterprises, and create more job opportunities. e) Endowment insurance of farmers affected by land acquisition: Eligible farmers affected by land acquisition 8 may effect the endowment insurance of farmers affected by land acquisition voluntarily, as shown in Appendix 3. In the meantime, during the construction of the subproject, the implementing agencies will take some assistance and supporting measures, including: a) During construction, the affected people will be arranged for labor service with priority, which will bring cash income to the affected people. b) The affected county will give priority to the affected people for jobs in local industry or labor export (at-home work for industry). c) During the whole production restoration process, technical training can be organized for the affected people, such as training on the cultivation of cash crops and stockbreeding. Technicians from the agricultural and labor and social security authorities will be invited to give training on agriculture and cultivation in the affected areas, so that every affected rural household can receive at least one session of agricultural or nonagricultural technical training. These measures will serve to improve the quality and output of crops, increase the economic income of the affected people, and restore their livelihoods. 5.2.3 General strategy and measures for demolition of residential houses The subproject involves house demolition of 22 villages. Through preliminary survey and consultation, the displaced households will be resettled in the following ways: a) After cash compensation, the affected households will select a suitable housing site for self-demolition and self-building as they wish, accounting for 76.12%; b) By signing the agreement, the collectives will plan housing sites for self-demolition and self-building in a unified manner, accounting for 23.88%.

8 Generally, this means affected agricultural population not having the basic living and production conditions or with a per capita arable area of less than 0.3 mu after land acquisition. For farmers affected by land acquisition aged 60 or more for men or 55 or more for women, the pension received by everyone per month shall not be less than 80 yuan in principle paid by government, APs may contribute more voluntarily to increase their pension payments.

The willingness for demolition of residential houses and resettlement of rural residents is shown in .

Table 5-1.

Table 5-1 Willingness for Demolition of Residential Houses and Resettlement of Rural Residents Number of households b) Unified a) Selection of planning of a housing site housing sites for County/ Town/ for Pile No. Village self-demolition district Xiang self-demolition Subtotal and and self-building self-building after cash after cash compensation compensation K0+000 ～ Shantou 5 0 5 K0+510 K4+920 ～ Shantou K7+060 Luochang 2 0 2 K8+020 ～ K11+120 K0+510 ～ K4+920 Liuwei Gaodu 1 0 1 K7+060 ～ Sixian K8+020 Zhanglou 6 0 6 K11+120 ～ Wafang Changwei 7 0 7 K17+180 Guoji 2 0 2 Dongfeng 3 0 3 K17+180 ～ Dazhuang Jiebei 1 0 1 K27+110 Hexie 7 3 10 Gonggou 1 0 1 K27+110 ～ Huangwei Huaxin 1 0 1 K38+040 Hongxing 3 0 3 Fengmiao K38+040 ～ Fengmiao neighborhood 7 4 11 K48+160 committee K57+200 ～ Lingbi Yugou Zhenglou 5 0 5 K67+730 Youwei 16 6 22 K67+730 ～ Youji Lilou 4 0 4 K80+090 Zhangdonghu 1 0 1 K80+090 ～ Jiejie Zhangshan 7 0 7 K90+800 Landing 5 6 11 K90+800 ～ Yongqiao Langan Lanxi 10 8 18 K100+620 Hancun 4 5 9 K104+230 ～ Caocun Zhangzhuang 4 0 4 K106+998 Heji 102 32 134 Total 76.12% 23.88% 100.00%

5.2.4 Resettlement and restoration plans for key villages In order to further make clear the impacts of the subproject and improve the effectiveness of resettlement, the relevant traffic authorities, town governments, administrative villages and villagers have been gathered to hold discussions based on the information provided by the feasibility study report. The impacts of the subproject,

land acquisition and house demolition, and the next-step measures for economic restoration were discussed. Based on the above impact analysis of land acquisition, 39 villages are affected by land acquisition or house demolition, in which 16 villages (Shantou, Zhanglou, Changwei, Dongfeng, Jiebei, Fengmiao Neighborhood Committee, etc.) are affected by both land acquisition and house demolition, so pertinent resettlement and restoration programs have been developed for the 6 relatively seriously affected villages of Fengmiao, Hexie, Matai, Youwei, Lanxi and Wangcun.

¾ Lingbi County A. Fengmiao Neighborhood Committee, Fengmiao Town Fengmiao Neighborhood Committee has 6,488 people out of 1,191 households, including 3,374 men and 3,893 laborers, an arable area of 2,577 mu and a per capita arable area of 0.40 mu. The main crops are wheat and corn. Since the agricultural population of Fengmiao Neighborhood Committee is very small. The villagers’ income comes mostly from industry or tertiary industries, with a per capita net income of 3310 yuan. The subproject will acquire 1.94 mu of arable land of Fengmiao Neighborhood Committee Village permanently, accounting for 0.34% of total arable area, affecting15 people out of 4 households, accounting for 0.34% of the total number of households and 0.23% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 2574.8 yuan, 668.7 yuan per household and 183.65 yuan per capita. There is little impact of land acquisition. After land acquisition, per capita arable area will be 649.14 m2 of residential houses will be demolished, affecting 40 people out of 11 households. ¾ Measures for restoration of production income: Since Fengmiao Neighborhood Committee has over 20 enterprises and is close to towns, the villagers’ income comes mainly from employment and business operation. In addition, the subproject will acquire 1.94 mu of arable land only, so the impact of land acquisition is limited. Based on the survey, the local villagers have two opinions about the compensation for land acquisition: a) They prefer direct cash compensation to the affected households. b) They expect the compensation fees to be distributed evenly in each team, and then the land be reallocated. Which option will be implemented will be determined at a village congress. ¾ Resettlement measures for house demolition: Based on the survey, as to the resettlement for house demolition, most of the villagers of Fengmiao Neighborhood Committee expect that the compensation fees for housing sites will be paid to the village, and then the village committee will adjust their housing sites, for which a house construction permit should have been obtained. ¾ Other Since the soil quality of Fengmiao Neighborhood Committee is suitable for water storage, and the volume of earthwork of a borrow pit is high, the villagers suggest that land with bad soil quality should be used for borrow pits, which will be converted into fishponds and used for aquaculture, usually 3-4 meters deep. B. Youwei Village, Youji Town Youwei Village is located in the northwest of Youji Town and governs 9 natural villages and 19 villager teams. The village has 761 households with 3,044 persons, including 1,583 male and 1,826 laborers; arable area is 3,235 mu, 1.06 mu per capita. The main crops are wheat and cotton. The village’s per capita net income is 3305 yuan. 0.32 mu of arable land of the village will be acquired, accounting for 0.01% of the village’s total arable land area, affecting 3 households with 10 persons, accounting for

0.39% of all households and 0.33% of all villagers of the village; the annual average loss of income arising from land acquisition is estimated to be 440.37 yuan, 146.79 yuan per household and 44.04 yuan per capita. The village is affected by land acquisition to a very low extent. Houses of 1,078.66 m2 have been demolished, affecting 22 households with 78 persons. ¾ Measures for restoration of production income: Since the subproject will acquire o.32 mu of arable land only, the impact of land acquisition is limited. The local villagers has little objection to the compensation for land acquisition. The measure to be taken is to the land compensation will be paid to the collective, the resettlement subsidy and the crop compensation will be paid directly to the affected households, and the village collective will allocate land. ¾ Resettlement measures for house demolition: Since Youwei Village has reserved land, additional housing sites can be allocated to the displaced households. An acceptable option of resettlement for house demolition is the villagers exchange housing sites privately or under the village committee’s unified planning.

¾ Sixian A. Shantou Village, Shantou Town Shantou Village is the seat of the Shantou Town Government. The village has 893 households with 4,530 persons, including 2,350 men and 2,718 laborers; arable area is 2,718 mu, 1.07 mu per capita. The main crops are wheat, corn and soybean. Since the village is the seat of the town government, many villagers deal with small commodity marketing. 16.12 mu of arable land of the village will be acquired, accounting for 0.33% of the village’s total arable land area, affecting 33 households with 112 persons, accounting for 3.70% of all households and 2.47% of all villagers of the village; the annual average loss of income arising from land acquisition is estimated to be 23,851.68 yuan, 722.78 yuan per household and 212.96 yuan per capita. The village is affected by land acquisition to a very low extent. Houses of 484.45 m2 have been demolished, affecting 5 households with 19 persons. ¾ Restoration measures for production income: Since only 16.12 mu of the village is acquired, the impact of land acquisition is minor. The villagers prefer direct cash compensation. ¾ Resettlement measures for house demolition: According to the survey, the 5 households affected by house demolition in Shantou Village have two houses, and the demolished houses are their roadside auxiliary houses (unoccupied) only, so they are affected to a minor extent.

Figure 5-1 Houses under Unified Planning and Houses Potentially Demolished of Shantou Village B. Hexie Village, Dazhuang Xiang

The village has 1,232 households with 4,955 persons, including 2,498 men and 2,973 laborers; arable area is 6,434 mu, 1.3 mu per capita. The main crops are wheat, corn and soybean. The villagers’ main sources of income are crop cultivation and employment, and per capita net income is 2,946 yuan. 26.76 mu of arable land of the village will be acquired, accounting for 0.42% of the village’s total arable land area, affecting 53 households with 189 persons, accounting for 4.30% of all households and 3.81% of all villagers of the village; the annual average loss of income arising from land acquisition is estimated to be 39,604.8 yuan, 747.26 yuan per household and 209.55 yuan per capita. The village is affected by land acquisition to a very low extent. Houses of 574.5 m2 have been demolished, affecting 10 households with 42 persons. ¾ Restoration measures for production income: The village abounds with arable land resources. Only 26.76 mu of arable land has been acquired, 0.14 mu per capita, so the impact of land acquisition is minor. The villagers prefer direct cash compensation. ¾ Resettlement measures for house demolition: According to the survey, the demolished houses of the 10 households affected by house demolition in Hexie Village are their roadside auxiliary houses (unoccupied) only, so they are affected to a minor extent.

¾ Yongqiao District A. Matai Village, Xieji Town Matai Village has 857 households with 3,392 persons, including 1,843 men and 2,035 laborers; arable area is 4,049 mu, 1.19 mu per capita. The main crops are wheat and corn. Many villagers also grow the cash crop seedless watermelon or raise sheep. The village’s per capita net income is 3,328 yuan. 24.3 mu of arable land of the village will be acquired, accounting for 0.6% of the village’s total arable land area, affecting 53 households with 211 persons, accounting for 6.18% of all households and 6.22% of all villagers of the village; the annual average loss of income arising from land acquisition is estimated to be 32,805 yuan, 618.96 yuan per household and 155.47 yuan per capita. The village is not affected by house demolition. ¾ Measures for restoration of production income: The subproject will acquire 24.3 mu of arable land of Lanxi Village permanently, 0.12 mu per capita, so the impact of land acquisition is limited. Based on the survey, the local villagers have two opinions about the compensation for land acquisition: a) They prefer direct cash compensation to the affected households.They can use the money on growing the seedless watermelon and raising sheep. b) They expect the compensation fees to be distributed evenly in each team, and then the land be reallocated. The above options to be implemented will be determined at a village congress during the resettlement implementation.

B. Lanxi Village, Langan Town Lanxi Village has 1,084 households with 4,401 persons, including 2,239 men and 2,641 laborers; arable area is 6,641 mu, 1.51 mu per capita. The main crops are wheat and soybean. The villagers’ main sources of income are crop cultivation and employment, and per capita net income is 3,069 yuan. 4.5 mu of arable land of the village will be acquired, accounting for 0.07% of the village’s total arable land area, affecting 59 households with 207 persons, accounting for 5.44% of all households and 4.7% of all villagers of the village; the annual average loss of income arising from land acquisition is estimated to be 6,431.71 yuan, 109.01 yuan per household and 31.07 yuan per capita. The village is affected by land acquisition to a very low extent. Houses of 1,205.9 m2 have been demolihsed,

affecting 18 households with 83 persons. ¾ Restoration measures for production income: The village abounds with arable land resources. Only 4.5 mu of arable land has been acquired, so the impact of land acquisition is minor. However, since the villagers engage mainly in agriculture and attach great importance to land, they prefer land reallocation. ¾ Resettlement measures for house demolition: As to the resettlement for house demolition, most of the villagers of Wangzhuang Village expect direct compensation to the affected households, and expect that the government should assist them in adjusting housing sites and provide preferences in house construction permit and farmland use tax to the displaced households.

5.3 Resettlement training

Training needs will be identified based on the preference of APs for livelihood income restoration options (see section 5.2.2). To ensure that the displaced persons alter the traditional concept of employment, build up correct professional awareness and master necessary labor skills, the implementing agencies will appropriate special funds for resettlement training. The PMO will provide resettlement training in conjunction with the affected labor and social security authorities, including agricultural technical training, pre-job training and vocational skills training. The agricultural technical training covers fruit tree cultivation and stockbreeding techniques. The pre-job training covers the employment situation, the national employment policies, the protection of labor rights and interests, and professional ethics; the vocational skills training will be held irregularly based on job needs, and include nonagricultural technical training mainly. . To improve training efficiency, the local labour bureaus will cover the APs’ training needs into their annual training plan during resettlement implementation. The general training program is shown in Table 5-2.

Table 5-2 Technical Training Program for Displaced Persons No. Time Subjects Participants Scope of training Budget (10,000 yuan) Affected Agricultural technical 1 Dec. 2011 2,500 5 households training Affected 2 Jun. 2011 2,500 Pre-job training 5 households Affected Vocational skills training 3 Dec. 2012 3,000 5 households (nonagricultural) 4 Other irregular technical training 16

A training plan will be formulated by each seriously affected village with guidance from county/township labor bureau/office and ACWF, and the training subsidies will come from the training budgets.

5.4 Protection of women’s rights and interests

At the preparation stage of the Resettlement Plan, the survey team organized women to participate in the impact survey of the subproject, and consulted them about their ideas for the income restoration plan. Women approve of the subproject and think the subproject is good to traffic improvement and land acquisition has little impact on their livelihoods. They expect cash compensation, employment in the subproject and training on crop and fruit tree cultivation, and stockbreeding techniques. Aiming at the willingness of women, 30% of women will get unskilled job

opportunities at the implementation stage. In addition, the principle of equal pay for equal work will apply to both men and women. However, use of child labor is prohibited. Part of the technical training should be designed to develop women’s labor skills, such as breeding, sewing and weaving skills, in order to keep their income stable. 8,000 persons will receive resettlement training, with not less than 4,000 persons of female labor (50%). Meanwhile, they can have access to relevant information during resettlement, and participate in consultation and resettlement. The compensation agreement will be signed by both spouses. See details in Appendix 2-Part B Gender analysis of women during resettlement.

5.5 Assistance measures for vulnerable groups

According to the survey, 78 people out of 20 households among the people affected by land acquisition fall into vulnerable groups. During the whole relocation process, the PMO, the implementing agencies and local governments will pay particular attention to the resettlement of the vulnerable groups. The Anhui PMO has set up a special fund to support the vulnerable groups at 1% of the basic resettlement expenses, namely 268,300 yuan. They will not only be resettled for livelihood and production according to the implementation plan of the subproject, but also be provided certain assistance to improve their living and production conditions. The key measures are as follows: 5.5.1 Measures for Disabled, Wubao and Widows 1) Collective retains land compensation and resettlement subsidy and provides monthly allowances and medical expenses are free to Wubao 2) Special allowances will be provided to the Disabled 3) The training and employment as a priority to labor force in these households

5.5.2 Measures for low-income or poor households 1) Skill training will be provided to 2 family members, at least one female. 2) Priority employment (such as outside jobs or work for the Project construction) will also be provided. 3) The pension will be provided by local government.

5.5.3 Measures for seriously affected households 1) Skill training will be provided to 2 family members, at least one female. 2) Priority employment (such as outside jobs or work for the Project construction) will also be provided. 3) When possible, replacement land should be arranged as a priority. 4) Small and simple houses are to be replaced using the minimum house standard for exchange house, or minimum compensation, or free labor supports.

5.6 Restoration plans for temporarily occupied land 5.6.1 Restoration plan for land occupation for borrow pits It was found during the survey that the selected sites of borrow pits in different localities are different from those in the restoration plan for land occupation for borrow pits. For example, the villagers of Fengmiao Town expect to select borrow pits where soil quality is bad; since the local soil has a high water storage capacity, borrow pits can be used as fishponds in the future; since Dazhuang Town is affected seriously by floods, the villagers expect that select borrow pits be located in low-lying land with bad soil quality, and connected to the local canal system to minimize the impact on agricultural production and reduce inland inundation. The overall willingness for

borrow pits is that borrow pits should be concentrated and the impact on arable land should be minimized; if this is unavoidable, borrow pits should be selected in low-lying land with bad soil quality; the selected borrow pits should be used as part of the local canal system or fishponds in the future. Therefore, the construction agency is advised to consult with the local people more frequently. In addition, based on the survey, the villagers expect that after construction, the land occupied temporarily should be restored mainly by themselves with the funding of the implementing agencies. 5.6.2 Restoration plan for other temporarily occupied land During construction on temporarily occupied land, strict measures will be taken to protect surface soil and avoid any irrecoverable impact. During excavation, surface soil (recommended thickness 30-50cm) will be collected and piled up separately, and soil loss prevention measures will be taken. After construction, subsurface soil will be backfilled first, and then surface soil will cover the surface evenly, and the site will be leveled to alleviate the impact on the quality of arable land. Temporarily trampled land during construction will harden and should be plowed immediately after construction to restore its looseness. The field irrigation and drainage canals, facilities and plowing roads will also be restored to ensure the basic requirements for farmland irrigation can be met after reclamation.

5.7 Restoration plan for infrastructure The affected special facilities and ground annexes will be compensated for by the implementing agencies to property owners, and then restored by property owners. The restoration measures for demolished facilities must be planned in advance. In practice, these measures should be tailored to practical conditions, be safe, efficient, timely and accurate, and minimize adverse impacts on the nearby residents. For the affected municipal public facilities, the demolition agency should act on the construction drawings of the subproject, and minimize demolition without affecting construction. The demolition agency should rebuild (or relocate) the affected pipelines before demolition without affecting the regular lifestyle of the residents along the route (including those not to be relocated). In addition, for the production and living facilities (canals mainly) affected by the subproject, the design agency conducted an extensive survey of the subproject’s possible impacts on the production and livelihoods of the local residents in the form of discussion and questionnaire survey at the survey and design stage to collect opinions from the local people’s governments, competent authorities, social organizations and local residents. These opinions have been mostly embodied in the project design. Based on field exploration, the design agency took appropriate engineering measures for the affected production and living facilities at the design stage. For example, for canals disconnected due to highway occupation, culverts will be built in the roadbed or new exposed canals parallel to the highway built within the protected area of the roadbed; canals damaged by construction will be repaired after the completion of the subproject. Canals will be built by the construction team or by villagers in a compensated manner. All these costs have been included in the general budget of the subproject, and are no longer listed in the budgetary estimate in this report.

6 Resettlement Organization

6.1 Management agencies for resettlement implementation

6.1.1 Organizational setup To ensure that resettlement is carried out successfully and the expected results are fulfilled, a top down organization must be set up at the implementation stage to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that necessitates the assistance and collaboration of multiple departments, the communications, land and resources, and finance authorities will participate and assist in the implementation of resettlement. Each of the affected towns and villages has 1-2 leaders responsible chiefly for the assistance in resettlement. The agencies responsible for land acquisition and house demolition in the subproject include: ¾ APCD Foreign-funded Project Management Office ¾ AHAB ¾ Municipal/county (including county-level municipal) highway administration bureaus (headquarters)9 ¾ Town resettlement offices ¾ Village committees (neighborhood committees) ¾ Project design agency ¾ Independent monitoring and evaluation agency ¾ Other agency: Land Resource Bureau, House Demolition Office, Women ‘s Federation Labor Bureau, etc.

6.1.2 Responsibilities of agencies ¾ APCD Foreign-funded Project Management Office (Anhui PMO Responsible mainly for organizing the resettlement of the subproject, formulating policies on resettlement activities of the subproject, coordinating relations among all levels of the resettlement organization, and serving as a bridge between ADB and the implementing agencies ¾ AHAB Responsible mainly for handling day-to-day affairs in resettlement planning and implementation, and exercising the management, planning, implementation, coordination, supervision and monitoring functions of resettlement as the project management agency: Formulating the land acquisition, house demolition and resettlement policies for the subproject; Entrusting the design agency to define the affected areas, measure the data on physical objects affected by land acquisition and house demolition, and save such data; Applying for the license for planning of land use and the license for land used for construction; Giving operational training to the key resettlement officials of the land acquisition, house demolition and resettlement office;

9 A construction headquarters will be set up for the subproject based on the highway administration bureau and in conjunction with the land and resources bureau, finance bureau, auditing bureau, demolition office, communications bureau and construction bureau to be responsible for resettlement.

Organizing and coordinating the preparation and implementation of the Resettlement Plan; Responsible for the management and disbursement of the resettlement funds, and supervising the use thereof; Directing, coordinating and supervising resettlement activities and their progress; Directing and assisting in the disposition of complaints; Taking charge of and inspecting internal monitoring, and preparing land acquisition, house demolition and resettlement progress reports; Selecting the external monitoring agency and assisting in external monitoring activities ¾ Municipal/county (including county-level municipal) highway administration bureaus (headquarters) Assisting the design agency in defining the affected areas, measuring the data on physical objects affected by land acquisition and house demolition, and saving such data; Assisting in preparing the Resettlement Plan and responsible for the implementation of resettlement; Selecting key resettlement officials for operational training; Organizing public consultation, and propagandizing the resettlement policies; Directing, coordinating and supervising resettlement activities of the agencies related to land acquisition, house demolition and resettlement and their progress; Responsible for resettlement, paying resettlement expenses pursuant to the agreement, and handling complaints from displaced persons; Implementing internal monitoring activities, preparing internal monitoring reports, and reporting to AHAB regularly; Assisting in external monitoring activities. ¾ Town resettlement offices The town resettlement organization is headed by the leader responsible of each town, and composed of key officials of the land and resources office, the police office, the civil affairs office and the villages. Its main responsibilities are: Participating in the survey of the subproject, and assisting in the preparation of the Resettlement Plan; Organizing public participation, and propagandizing the resettlement policies; Implementing, inspecting, monitoring and recording all resettlement activities within the town; Responsible for the disbursement and management of land compensation fees; Supervising the acquisition, occupation and restoration of land; Reporting land acquisition and resettlement information to the county highway administration bureau; Coordinating and handling conflicts and issues arising from its work. ¾ Village committees (neighborhood committees) The resettlement working team of a village committee is composed of its key officials. Its main responsibilities are: Participating in the social and economic survey and the impact survey of the subproject; Organizing public consultation, and propagandizing the policies on land acquisition and house demolition;

Organizing the implementation of resettlement activities for agricultural and nonagricultural production; Reporting the displaced persons’ opinions and suggestions to the competent authorities; Providing assistance to displaced households with difficulties. ¾ Project design agency At the planning and design stage, it will survey the physical indicators of land occupation and house demolition, the environmental capacity, the usable resources, etc. accurately, and assist the governments in the affected areas in formulating resettlement plans, preparing budgetary investment estimates for compensation for land occupation and house demolition, and drawing the relevant drawings. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the employer timely, make design disclosure to the project management offices of all levels, assist in the implementation of the relocation and resettlement for production of the displaced persons, and improve the resettlement plans based on the practical situation. ¾ Independent monitoring and evaluation agency The employer will employ a qualified monitoring and evaluation agency as the external resettlement monitoring and evaluation agency. Its main responsibilities are: 1) Observing all aspects of resettlement planning and implementation as an independent monitoring and evaluation agency, monitor and evaluate the resettlement results and the social adaptability of the displaced persons, and submit resettlement monitoring and evaluation reports to ADB through the PMO; and 2) Providing technical advice to the PMO in data collection and processing.

6.2 Staffing and facilities

6.2.1 Staffing For the successful implementation of resettlement, all levels of the resettlement organization of the subproject have been staffed with dedicated personnel, and a smooth information communication channel created. The staffing of all levels of the resettlement organization is shown in Table 6-1.

Table 6-1 Staffing of Resettlement Agencies Agency Staff Composition APCD 4 Civil servants AHAB 2 Civil servants, technicians Municipal/county (including county-level municipal) highway 4 Civil servants, technicians administration bureaus (headquarters) Cadres and representatives of displaced Affected towns and villages 4-6 persons External monitoring agency 4 Resettlement experts

6.2.2 Facilities All levels of the resettlement organization can make use of the existing resources. The basic office, traffic and communication equipment is already available, including office desks and chairs, computers, printers, telephones, facsimile machines, means of transport, etc. 6.2.3 Institutional training program To ensure the successful implementation of resettlement, the displaced persons

and the resettlement personnel must be trained under a training program, which will be developed by the PMO and AHAB. A training and human resources development system has been established for the resettlement organization at the municipal, county, town and village levels. Training will be conducted in diverse forms, including expert lecture, technical training courses, visiting and learning from other resettlement projects, and field training of technical and management personnel. The training program is shown in Table 6-2. The scope of training includes: —ADB resettlement policies and principles; —The differences between the provisions of the ADB Policy and PRC Laws, and Policy implementation; —Management of design and implementation of the Resettlement Plan; —Points for attention during the implementation of resettlement; —Resettlement monitoring and evaluation

Table 6-2 Resettlement Training Schedule for officer and village leaders Fund Training Time Location Subjects Scope (10,000 method yuan) June Resettlement Hefei Lecture Resettlement staff 10 2010 operational training Learning and Backbone staff of Field visit of ADB June 2011 Domestic 30 inspection PMO resettlement projects Exchange and December Exchange and discussion on Hefei Resettlement staff 10 2011 lecture experience and existing issues in resettlement

In addition, the following measures will be taken in the subproject to improve the capabilities of the resettlement organization: (1) Define the scope of responsibilities of all levels of the resettlement organization, and strengthen supervision and management; (2) Improve the strength all levels of the resettlement organization gradually, especially specialized technical forces; all personnel must attain a certain degree of professional proficiency and management level; strengthen their technical equipment, such as computers, monitoring equipment and means of transport; (3) Selecting personnel strictly, strengthen operational and technical training, and train the management and technical personnel of all levels of the resettlement organization to improve their professional proficiency and management level; (4) Appoint female officials appropriately and give play to their role in the implementation of resettlement; (5) Establish a database, strengthen information feedback, and ensure the smooth top-down and bottom-up communication of information; leave major issues will be resolved by the resettlement leading group; (6) Strengthen the reporting system and internal monitoring, and solve problems timely; and (7) Establish an external monitoring and evaluation mechanism, and a pre-warning system.

7 Public Participation, Complaints and Appeals

7.1 Public participation

According to the policies and regulations of ADB, the PRC and Anhui Province on land acquisition, house demolition and resettlement, in order to protect the lawful rights and interests of the displaced persons, reduce disputes and complaints, listen to the displaced persons’ opinions and advice, and further improve the policies and implementation rules on land acquisition and resettlement and the Resettlement Plan of the subproject, and organize implementation properly so as to realize the goal of resettling the displaced persons properly, it is necessary to conduct public participation at the preparation and implementation stages of the subproject. 7.1.1 Participation at the preparation stage Since December 2008, under the direction of the technical assistance and consultation experts, the survey team of Anhui Communications Vocational and Technical College (ACVTC) and Hohai University has conducted a series of social and economic surveys and public opinion consultations (with 30% being women). At the preparation stage, the PMO, the implementing agencies and the design agency conducted extensive consultation on land acquisition and resettlement. The updated RP is to be uploaded to ADB website in Dec 2011 The participation activities at the preparation stage are shown in Table 7-1. The minutes of the public participation meeting are shown in Appendix 4. The resettlement Information Booklets (RIBs) are to be handed out in December 2011. The contents of RIB are shown in Appendix 5.

Table 7-1 Public Participation at the Preparation Stage Date Organizer Participants Number Purpose Key opinions and details Introduction to the background and objectives of the Anhui Provincial Affected Feasibility study, subproject Aug. – Communications people, village field visit, Minimizing the occupation Nov. Planning, officials, 140 preliminary of arable land in site 2008 Survey and engineering impact survey selection Design Institute technicians Minimizing impacts on the displaced persons in road routing Assistance in the impact Preparation for survey Government the The villagers’ Dec. departments Resettlement representatives express a 2008 ACTVC concerned and 850 Plan, impact and strong need for the –Feb. villagers’ social and subproject 2009 representatives economic Social and economic surveys survey and displaced households survey Consultation of Government compensation and Hohai departments Preparation for Mar. income restoration plans University, concerned and 230 the income 2009 Canal restoration plan ACTVC villagers’ restoration plan Restoration measures for representatives borrow pits, etc. Disclosure of the Affected Resettlement Disclosure of June. APCD PMO people, villager Plan or compensation standards, 2009 teams information appeal channel, etc. booklet

Date Organizer Participants Number Purpose Key opinions and details Publication of July.. the draft ADB website 2009 Resettlement Plan Government Hohai university, departments May communication concerned and Update survey Updte the Resettlement Plan 2011 bureau of counties/ district villagers’ representatives Publicationg of the Dec.2011 ADB website updated resettlement

7.1.2 Participation plan for the implementation stage With the progress of preparation and implementation, the implementing agencies will conduct further public participation. The public participation arrangements are shown in Table 7-2.

Table 7-2 Public Participation Program of the Subproject Purpose Mode Time Unit Participants Topic Anhui PMO, Highway Disclosure of Bureau, Land & land acquisition Village Resources Bureau; area, Bulletin on land bulletin board affected county’s All affected compensation Jun 2011 acquisition and village highway bureau and people standards and meeting land & resources modes of bureau, town and resettlement, village officials etc. Anhui PMO, Highway Bureau, Land & Bulletin on Village Resources Bureau; compensation Compensation bulletin board affected county’s All affected and resettlement Jun.2011 fees and mode and village highway bureau and people plan for land of payment meeting land & resources acquisition bureau, town and village officials 1) Check for omissions, and confirmation of the final Anhui PMO, Highway quantities Bureau, Land & affected Resources Bureau; Recheck of 2) Detailed list of affected county’s All affected physical Field survey Apr.-May 2011 occupied land highway bureau and people indicators and losses of land & resources the displaced bureau, town and persons village officials 3) Preparation of the basic compensation agreement Anhui PMO, Highway Discussion of Determination Bureau, Land & the final income and Village Before Resources Bureau; All affected restoration plan implementation meeting implementation affected county’s people and the plan for of income (many times) highway bureau and use of restoration plan land & resources compensation

bureau, town and fees village officials Three months Local land & resources Housing plots Village All affected before house bureau, town and / selection meeting people demolition village officials Local labor bureau, Village June 2010~June All affected Discussion of Training plans town and village meeting 2012 people training needs officials 1) resettlement progress and impacts 2) compensation disbursement Village Jun.2011~Dec, town and village All affected Monitoring 3) information participation 2012 officials people disclosure 4) livelihood restoration and housing relocation

7.2 Complaints and appeals

Public participation is encouraged throughout the preparation and implementation of the Resettlement Action Plan. Therefore, it is likely that great disputes will not arise. However, some unexpected issues may arise from this process. In order to address such issues and ensure the successful construction and land acquisition of the subproject, a transparent and effective appeal channel has been established. The basic procedure is as follows: Stage 1: If any right of any displaced person is infringed upon in any aspect of land acquisition and resettlement, he/she can report this to the village committee. Either the committee or the displaced person may seek for a solution from the town government through consultation. After receipt of an appeal, the town government will record it, and study a solution together with the committee and the displaced person within 2 weeks. Stage 2: If the complainant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Suzhou PMO after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the complainant is dissatisfied with the disposition of Stage 2, he/she may file an appeal to AHAB after receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: f the complainant is still dissatisfied with the disposition of AHAB, he/she may file an appeal to the administrative authorities with competent jurisdiction level by level for arbitration in accordance with the Administrative Procedure Law of the People’s Republic of China after receiving such disposition. Stage 5: If the complainant is still dissatisfied with the arbitration award, he/she may bring an action to a civil court in accordance with the Administrative Procedure Law after receiving such award. All agencies concerned will accept the affected people’ complaints and appeals free of charge, and all costs reasonably incurred will be disbursed from the contingency expenses of the subproject. At the whole construction stage, this appeal procedure will remain effective so that the affected people can use it to solve relevant issues. The above appeal channel and the right of appeal will be notified to the displaced persons through the participation process at a public meeting and the resettlement information booklet. In the meantime, appeal proceedings will be

published to the affected population people through media.

8 Resettlement Budget

8.1 Resettlement budget

All expenses incurred during land acquisition and resettlement will be included in the general budget of the subproject. Based on prices of May 2011, the total resettlement expenses of the subproject are35.2493 million yuan, including expenses for the acquisition of rural collective land of 14.0603 million yuan, accounting for 39.89% of total expenses; compensation for temporary land occupation of 4.6544million yuan, accounting for 13.21%; compensation for demolition of rural residential houses of 4.7098 million yuan, accounting for 13.36%; compensation for infrastructure and ground annexes of 2.4268 million yuan, accounting for 6.88%; and taxes and management fees of 9.3980 million yuan, accounting for 26.66%. The resettlement expenses are shown in Table 8-1Error! Reference source not found.. The basis of the budget estimated is explained in section 4.7. See detailed resettlement budget in Appendix 6. Table 8-1 Budget of Resettlement Expenses

Total No. Item Sixian Lingbi Yongqiao Proportion expenses 1 Collective land 392.35 443.52 570.16 1,406.03 39.89% 1.1 Land compensation 114.42 152.87 180.58 447.87 12.71% 1.2 Resettlement subsidy 266.98 280.77 378.34 926.09 26.27% 1.3 Crop compensation 10.95 9.87 11.23 32.05 0.91% 2 Temporarily occupied land 154.12 146.12 165.2 465.44 13.20% 2.1 Land occupied temporarily for borrow pits 90.88 75.68 111.2 277.76 7.88% 2.2 Other land occupied temporarily 63.24 70.44 54 187.68 5.32% 3 Rural residential houses 111.07 117.48 242.43 470.98 13.36% 3.1 Housing compensation 106.45 112.45 233.54 452.44 12.84% 3.2 Other compensation 4.61 5.03 8.88 18.52 0.53% 4 Infrastructure and ground annexes 105.15 91.42 46.11 242.68 6.88% Total of Items 1-4 762.690 798.540 1,023.90 2,585.13 73.34% 5 Land acquisition management fee 15.694 17.741 22.806 56.24 1.60% 6 Surveying, design and research expenses 22.881 23.956 30.717 77.55 2.20% 7 Administrative expenses 38.135 39.927 51.195 129.26 3.67% 8 Technical training expenses[1] 22.881 23.956 30.717 77.55 2.20% External monitoring and evaluation 9 expenses 15.254 15.971 20.478 51.70 1.47% 10 Subsidy for vulnerable groups 7.627 7.985 10.239 25.85 0.73% 11 Contingency expenses 95.391 99.004 126.052 320.45 9.09% 12 Land acquisition taxes 68.754 61.967 70.473 201.19 5.71% Farmland occupation tax 17.189 15.492 17.618 50.30 1.43% Farmland reclamation fee 51.566 46.475 52.854 150.90 4.28% Total of items 5-12 286.616 290.508 362.677 939.80 26.66% Total expenses 1,049.31 1,089.05 1,386.58 3,524.93 100.00% Proportion 29.77% 30.90% 39.34% 100.00%

8.2 Resettlement investment plan and sources of funds

The sources of the resettlement funds are counterpart funds from local finance and domestic loans. Before construction or during implementation, the investment plan will be implemented in stages in order not to affect the production and living conditions of the rural households affected by land acquisition, as shown in Table 8-2. Local government would also finance some related costs including housing sites development costs and livelihood training costs.

Table 8-2 Resettlement Investment Plan of the Subproject Year 2011 2012 2013 Total Investment (10,000 yuan) 1761.52 1409.21 352.30 3,524.93

Proportion 50% 40% 10% 100%

8.3 Management and disbursement of resettlement funds

The land compensation and the resettlement subsidy will be used in adequate consultation with the villagers’ opinions; the crop compensation will be paid to the affected people directly; the compensation fees for infrastructure and annexes will be paid to the entities and individuals concerned. To ensure that the resettlement funds are in place timely and fully, and to ensure the restoration of the production, livelihoods and income level of the affected rural households, the following measures will be taken: ¾ All expenses related to resettlement will be included in the general budget of the subproject; ¾ The land compensation and the resettlement subsidy will be paid up before land acquisition so that all affected people can be resettled properly; ¾ To ensure the successful implementation of land acquisition and resettlement, and to ensure that all funds are disbursed on schedule, all levels financial and supervisory organization will be established.

9 Resettlement Implementation Plan

9.1 Principles for resettlement implementation

According to the implementation schedule of the subproject, the construction works will commence in Oct.2011 and be completed in Oct.2013. To ensure that the resettlement schedule is linked up to the construction schedule, land acquisition will start from July. 2011 and end in July, 2013. The basic implementation principles of resettlement are: ¾ Land acquisition should be completed 3 months before the commencement of construction. The specific time of commencement should be determined as necessary for land acquisition, house demolition and resettlement. ¾ During resettlement, the affected people should have opportunities to participate in the subproject. Before the commencement of construction, the scope of land acquisition will be disclosed, and a resettlement information booklet will be distributed for the purpose of public participation. ¾ All types of compensation should be paid to property owners directly in full within 3 months from the date of approval of the land acquisition compensation and resettlement plans. No entity or individual should use the compensation fees for properties on their behalf, and such fees should not be discounted during disbursement for any reason.

9.2 Implementation Schedule for Resettlement

The overall progress plan for resettlement shall be developed based on the progress of land acquisition. However, this schedule shall be adjusted accordingly if the overall progress deviates. Details are shown in Table 9-1. Table 9-1 Implementation Schedule of Resettlement (As per November 2011) Responsible No. Resettlement Tasks Target Timing Status Agency 1 Disclosure 1.1 Information booklets(updated) 39 AVs PMO & AHAB June 2011 RP posted on ADB 1.2 IA, PMO & ADB Dec 2011 websites(updated) 2 Resettlement Plans & Budgets 2.1 Approval of RP & budgets (and CNY35.2493mill APG and PMO July 2011 compensation rates) ion 2.2 Village rehabilitation plans 39 AVs VCs Dec. 2011 3 Detailed Measurement Surveys (DMS) 3.1 -X056 AHAB Apr. 2011 4 Compensation Agreements 4.1 Village land agreements 39 villages LRBs July 2011 4.2 Household land agreements 1091 AFs VCs July.2011 4.3 House/property agreements 134 AFs LRBs Aug.2011 5 House Relocation 5.1 Dec 2011.-Jan Selection & approval of sites 134 AFs Town, VCs & AFs 2012 5.2 Site infrastructure preparation 14 sites Town & VCs Mar. 2012 5.3 New house construction 134 houses VC or AFs Mar.-Sep 2012 5.4 Moving into new houses 134 AFs AFs Oct-Nov. 2012 5.5 House demolition 134houses Contractor/AFs Dec. 2012 6 Implementation of Rehabilitation Measures 6.1 Land compensation payments 33 villages Towns & VCs July.-Sep. 2011 to AFs and land adjustment

Responsible No. Resettlement Tasks Target Timing Status Agency (where applicable) 6.2 Implement village rehabilitation 33 villages VCs Sep.-Dec. 2011 plans 6.3 Advice for income restoration, Towns, VCs, 1190 AFs Oct.-Dec. 2011 starting business & jobs Labor, ACF 6.4 Implement Training programs 1190 AFs Labor Offices May-Dec. 2012 6.5 Identify vulnerable AF and Labor & Social 26 AFs July.-Dec. 2011 implement support measures Security, PMO 6.6 Identifying and hiring AF for PMO, Labor, Oct. 2011 to Oct.. 2000 APs project construction contractors 2013 7 Resettlement Capacity Building 7.1 Training for AHAB & LRB 15 people ADB Aug.2011 7.2 Training for county & town 400 officers and PMO and LRB Jan.-Feb. 2012 officials and village leaders leaders 8 Monitoring & Evaluation 8.1 Baseline surveys One report Monitor 31 Oct. 2011 ongoing 8.2 Set-up internal supervision As per RP PMO & IA 30 Jun. 2011 8.3 Contract external monitor One PMO 30 Jul. 2011 8.4 Quarterly (as Commencing Internal monitoring reports PMO & IA required) 30 July.2011 8.5 Jun.2012 1stReport External monitoring reports Semi-annual Monitor Jun. 2013 2nd Report 8.6 Dec. 2012 1stReport External evaluation reports Annual Monitor Dec. 2013 2nd Report 8.7 Resettlement Completion one Report IA & PMO June 2014 Report 9 Documentation of Consultation IA Ongoing 10 Documentation of Grievances IA Ongoing 11 Flow of Land Compensation and Resettlement Funds 11.1 - To IAs Initial funds June.2011 11.2 - To villages Most of funds IA July.-Dec. 2011 11.3 - To households Most of funds IA, VCs Aug.-Dec. 2011 12 Commence Land Acquisition and Civil Works 12.1 X056 AHAB July..2011 AF=affected family; AP=affected person; AV=affected village; IA=Implementing Agency; APG=Anhui Province Government; PMO=Project Management Office; AHAB=Anhui Highway Administration Bureau.;LAR=land acquisition and resettlement; RIB=resettlement information booklet; RP=resettlement plan; VC=village committees.

10 Monitoring and Evaluation

To ensure the successful implementation of the Resettlement Plan and realize the goal of resettling the displaced persons properly, the implementation of the land acquisition, house demolition and resettlement activities of the subproject will be monitored and evaluated regularly as required by the ADB resettlement policies, including internal and external monitoring.

10.1 Internal monitoring

The internal monitoring agency of the subproject is APCD. Internal monitoring will be executed jointly by AHAB and other competent authorities (e.g., land and resources bureau). The PMO will prepare a detailed internal monitoring plan for the land acquisition and resettlement activities of the subproject. The scope of monitoring includes: (1) The survey and coordination of and suggestions for key issues of the displaced persons and the implementing agencies during implementation; (2) The restoration level of the household income of the displaced persons after land acquisition; (3) The resettlement and restoration level of the displaced persons after house demolition; (4) The restoration and resettlement of the vulnerable groups in the population affected by land acquisition and house demolition; (5) The disbursement, use and availability of the compensation fees for land acquisition and house demolition; (6) The degree of participation and consultation of the rural households affected by land acquisition and house demolition during implementation; (7) Resettlement training and its results; and (8) The management agencies for resettlement implementation in the affected areas, the training and working efficiency of the implementation personnel. The PMO will submit an internal monitoring report to ADB quarterly. In such reports, the statistical data of the past 3 months will be tabulated to reflect progress through comparison of the actual and planned use of the land acquisition, resettlement and compensation fees. Table 10-1 and Table 10-2 provide some formats. Table 10-1 Progress Report of Land Acquisition, House Demolition and Resettlement ______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Planned Proportion of Item Unit Actual quantity Aggregate quantity completion Permanent land acquisition Mu Temporary land use Mu House demolition area m2 Payment of land 10,000 compensation yuan Compensation for house 10,000 demolition yuan Personnel training Person Job arrangement Person Land adjustment Mu Reported by: Signature (person responsible): Official seal:

Table 10-2 Implementation Schedule of Fund Use ______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Investment Compensation Description Unit/ Adjusted Proportion of Affected unit required received 10 Qty. compensation compensation (yuan) (yuan) Village 1 Village 2 Collectives Displaced households Entities Reported by: Signature (person responsible): Official seal:

10.2 External monitoring

As required by the ADB policies, the PMO will employ a qualified, independent resettlement agency with experienced in ADB projects as the independent resettlement monitoring agency. The external monitoring and evaluation agency will make follow-up monitoring and evaluation of resettlement activities, monitor the progress, quality and funds of resettlement, and provide advisory opinions. It will also make follow-up monitoring of the production level and standard of living of the displaced persons, and submit monitoring and evaluation reports to the PMO and ADB. The external monitoring outline is shown in Appendix 7.

10.2.1 Scope and methods of external monitoring (1) Baseline survey The external monitoring agency will make a baseline survey of the villages affected by land acquisition in the subproject, and collect baseline data on the production level and standard of living of the monitored displaced households (standard of living, production and income levels). The survey of production level and standard of living will be conducted semiannually to track variations in this aspect. The survey methods include follow-up survey of typical sample (sample size: 20% of households affected by land acquisition, 20% of households affected by house demolition, 50% of affected villages; the sample households will be sampled randomly), random interview and field observation to collect necessary data. A statistical analysis will be made on this basis for evaluation. (2) Regular monitoring and evaluation During the implementation of the Resettlement Plan, the external monitoring agency will perform regular follow-up resettlement monitoring of the following activities twice a year through field observation, follow-up survey of the sample households and random interview with the displaced persons: ¾ Disbursement and amount of compensation fees; ¾ Training; ¾ Support to the vulnerable groups; ¾ Restoration and reconstruction of infrastructure and special facilities;

10 Fill building of village-level road (number), labor training and employment or subsidy for vulnerable groups, etc. in “Description”.

¾ Resettlement and restoration of production and livelihoods; ¾ Compensation for property losses; ¾ Schedule for the above activities (applicable at any time); ¾ Resettlement network organization; ¾ Use of compensation fees for collective land and income of the displaced persons; ¾ Increase in employment income of labor; and ¾ Whether the affected people benefit from the subproject. (3) Public consultation The external monitoring agency will attend the public consultation meetings to be held during the implementation of resettlement. By attending these meetings, the external monitoring agency can evaluate the results of public participation. (4) Complaints The external monitoring agency will visit the affected villages regularly, and inquire of the town governments and the implementing agencies that accept complaints about the disposition of complaints. In the meantime, it will also meet complainants and propose corrective measures and suggestions for the existing issues so that the implementation process becomes more effective. 10.2.2 External monitoring reporting The external monitoring and evaluation agency will submit a monitoring report and an evaluation report to ADB and the PMO semiannually. The reporting schedule is shown in Table 10-3.

Table 10-3 Schedule of Resettlement Monitoring and Evaluation Report Date 1 Baseline social and economic survey report Dec, 2011 2 1st monitoring report Jun, 2012 3 1st monitoring report and annual evaluation report Dec, 2012 4 2nd monitoring report Jun. 2013 5 2nd evaluation report and annual evaluation report Dec. 2013 6 Post evaluation report Jun. 2014

10.3 Post-resettlement evaluation

After the completion of the subproject, on the basis of monitoring and evaluation, the post-evaluation theory and methods will be used to make a summary and evaluation of resettlement activities to evaluate successful experience and lessons from land acquisition and resettlement and provide a reference for subsequent resettlement.

Appendixes

Appendix 1 Schematic Map of the Subproject

Appendix 2 Gender Analysis of Affected Areas

Part A – Gender Analysis of Rural Women in the Project Area 1. Legal Rights According to China’s laws, women have equal legal rights with men. of Women However, some women are not fully aware of their rights. The women of the project affected area have relatively good social status. All 2. Status of key issues of a family are determined through discussion both by the husband Women in and wife. Men are the backbones in a family. They attend the important Society meetings of the village. However, women have the influences on them when they are required to make determination. Women have the same title as men. Like other parts of China, in the affected areas, when a daughter is married, her land will remain in her mother’s home and she can only share the land owned by her husband’s home since the 3. Legal title to household contract responsibility system was put into practice in 1982. land and However, if a second round of land contracting is carried out at the affected property village (around 1999), this situation has been corrected. If land acquisition, house demolition and resettlement are involved, women will have equal rights to compensation. 4. Access to common Women have equal rights. property There is no restriction on gender role. However, women do housework and 5. Livelihoods appropriate agricultural production tasks mainly in Chinese rural areas, while and gender men deal with transport or work mainly. Generally, the working hours of women roles are 1.2 times those of men. In the meantime, many young women would also go out for work. 6. Contribution Women’s income is from farming and household sidelines mainly, accounting to household for about 25% of household income. income 7. Intra- Women have an equal voice in decision-making; when men are away for work, household women make decisions. equality Boys and girls enjoy equal opportunities in receiving education, and as long as 8. Educational children study hard, their parents would do their best to support their school levels education. Health conditions are quite good and there is no significant difference in 9. Health nutrition levels compared to men; however, medical expenses are rising which condition is a significant burden for some households, and women may suffer more. Women are represented in all village committees. In the meantime, women 10. Village and have a good informal network in the village and the villager team. Women may government participate in the election of the village committee, and have the right to elect institutions and be elected; local governments attach great importance to women’s development, especially in poverty reduction. Women enjoy a good status in the affected areas, and there is no restriction on Overall gender role; though women seldom participate in the decision-making of public evaluation and affairs of the village collective, they can express their views in many ways (e.g., key risks through male members of the household). B—Gender analysis of women during resettlement Mitigation Gender issue Concern/risk Impact of the subproject measures (1) Cash Women will be Men and women have equal rights to compensation or 1 Land, property deprived of land or compensation for land acquisition, improvement of the and right to properties or have resettlement etc. the project will not quality of remaining compensation no right to have any adverse impacts. land, restructuring compensation. of crop cultivation 2 House Women have no Women have title to houses, and (2) Women have demolition and right to decision house reconstruction is determined title to rebuilt

Part A – Gender Analysis of Rural Women in the Project Area rebuilding making or use the jointly by all family members, so houses. compensation women can participate in the fees. selection of housing site, house construction and transitional housing arrangement, etc. All affected households will lose part of land only, so the affected (1) Women will households will lose part of income receive land only. The compensation fees will be acquisition fees; (2) used at the own discretion of the Women are women will account 3 Restoration of affected households. Only seriously affected even more for at least 50% production and affected households have to change seriously, and among trainees; (3) income after their sources of income. Except cash obtain less during construction, land acquisition compensation, the affected assistance. women can have at households will be aided in restoring least 30% of income through auxiliary measures unskilled job (priority in employment during opportunities. construction, technical training and subsequent support, etc.) This will not lead to gender inequalities. For most households, the impacts of resettlement are not Women will have a 4 Increase in serious. The loss of land and the heavier burden or gender sufficient compensation will help Monitoring fewer inequalities women change the structure of crop opportunities. cultivation (e.g., cultivating more cash crops), which will increase their income. 5 Community The social network The subproject will not affect the No impact network system will be damaged. community network seriously. Serious health or The subproject will not affect the 6 Impact on social problems Provision of villages seriously, but some health / increase due to the stress of assistance together seriously affected households and of social resettlement with the civil affairs vulnerable groups will be faced with problems (violence, AIDS authorities difficulties. propagation, etc.) The resettlement impacts and policies are transparent through the bulletin of land acquisition, the No source of resettlement information booklet and 7 Public information or no consultation meetings; women can Holding a separate consultation and participation in play an active part in the above women’s meeting participation decision making activities. In the resettlement survey, women were surveyed specially, and their opinions taken into account in the Resettlement Plan. The PMO will No channel or 8 Complaints address women’s ability of complaint Women have equal rights. and appeals issues and take or appeal remedies actively. Women’s needs Encourage all are not fully The resettlement funds will be affected people, 9 Monitoring understood or the audited. In the meantime, the especially women, and Evaluation impacts on them external monitoring agency will pay to participate in are not fully special attention to women’s issues. monitoring and considered. evaluation

Appendix 3 Policies on Insurance of Farmers Deprived of Land

Anhui Province

Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63)

All municipal and county people’s governments, all departments of and agencies directly under the provincial government, and agencies of Central government in Anhui: To ensure the employment and social security of farmers affected by land acquisition practically, and maintain their lawful rights and interests, the following opinions are proposed on the employment and social security of farmers affected by land acquisition in accordance with the Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28). 1. Fully realize the importance and urgency of ensuring the employment and social security of farmers affected by land acquisition With the industrialization and urbanization of rural areas, there are an increasing number of farmers affected by land acquisition. It has become an urgent task in our province’s economic and social development to solve production and livelihood issues for farmers affected by land acquisition. Establish a sound employment mechanism and social security system for farmers affected by land acquisition to provide a stable source of income and reliable basic living guarantee to farmers affected by land acquisition, and solve their long-term livelihood issues. This is an embodiment of the important thought of the “Three Represents” and an objective requirement for building a well-being society in all aspects, and has great and far-reaching significance in protecting the lawful rights and interests of farmers affected by land acquisition, maintaining social and political stability, improving the investment environment, and promoting the comprehensive, sustained, rapid and balanced economic and social development of our province. Governments at all levels shall take it an important task and a priority to promote the employment of farmers affected by land acquisition, and accelerating the establishment of the social security system for farmers affected by land acquisition, and perform this task perfectly. 2. Principles to be followed in ensuring the employment and social security of farmers affected by land acquisition (1) Identify subjects of employment and social security reasonably: Subjects of the employment and social security of farmers affected by land acquisition are the agricultural population losing all or most of farmland within the planning area of a city (including organic town) approved for land acquisition by the State Council or the provincial people’s government pursuant to law. Out of the planning area of a city (including organic town), the agricultural population not having the basic living and production conditions, or having a per capita arable area of not less than 0.3 mu, or no longer occupying farmland within rural collective economic organizations after voluntary adjustment and not to be non-locally resettled by local people's governments after land acquisition approved pursuant to law shall also be identified as subjects of employment and social security. The specific criteria and term for the identification of subjects of the employment and social security of farmers affected by land acquisition shall be determined by municipal and county people’s governments based on local conditions. The procedure for the identification of subjects of the employment and social security of farmers affected by land acquisition is: A farmer affected by land acquisition files an application personally; the members of the village collective

economic organization, village committee or villager team discusses his/her eligibility; the town people’s government or sub-district office studies and publishes his/her eligibility; the labor and social security, and land and resources authorities review his/her eligibility, and report to the municipal or county people’s government for determination. (2) Highlight priorities: All local governments shall take the employment of farmers of employment age affected by land acquisition, the endowment insurance of farmers affected by land acquisition and the solution of basic livelihood issues of poor farmers affected by land acquisition as the priorities of their work, and ensure the medical treatment of farmers affected by land acquisition and the education of their children. Effective measures shall be taken to ensure that the standard of living of farmers affected by land acquisition is not reduced due to land acquisition, and that their long-term livelihoods are guaranteed. (3) Scientific measurement and calculation, unified planning, adaptation to local conditions, and steady progress: All local governments shall make unified planning of reform, development and stability, and the near-term, medium-term and long-term interests in local social and economic development, the connection between the employment and social security system for farmers affected by land acquisition with that for other urban residents, and the protection of the interests of farmers affected by land acquisition with different terms of land acquisition and reasons, and inside or outside the urban planning area on the basis of sufficient survey and study, detailed occupation data, and detailed basic information of the land and farmers affected by land acquisition; design practical and feasible specific measures for the employment and social security of farmers affected by land acquisition through scientific measurement and calculation, formulate definite operating procedures and strict working requirements, provide guidance for different types, and ensure steady and orderly progress. 3. Turn the registered permanent residence of farmers affected by land acquisition properly. Farmers affected by land acquisition are encouraged to move to towns. When farmers affected by land acquisition apply for the nonagricultural status in household registration, municipal and county (district) public security authorities shall go through the relevant formalities for them and register them at a nearby jurisdiction free of charge. Those having been turned into the nonagricultural status shall have the same rights to social security, education and residence as the local urban residents, and shall not be discriminated against by any entity or individual. 4. Promote the employment of farmers affected by land acquisition in diverse forms. Governments at all levels shall bring farmers affected by land acquisition into the urban employment system. Public benefit jobs shall be developed to place farmers affected by land acquisition. Where conditions permit, a certain proportion of land used for construction acquired by the state may be reserved for resettlement to absorb the employment of farmers affected by land acquisition. Land users shall give jobs suitable for farmers affected by land acquisition to them first. Farmers affected by land acquisition are encouraged to find jobs and start business independently. Unemployed farmers affected by land acquisition shall be brought into the reemployment service system actively, provided with free vocational training, advice on employment policies, employment information, vocational guidance and referral services; they shall be organized in a planned and orderly manner to participate in employment training and vocational skills training, so as to improve their employment skills and competitive power; and also provided with employment assistance and business startup guidance. 5. Ensure the social security of farmers affected by land acquisition properly (1) Farmers affected by land acquisition that have been turned into the nonagricultural status and are eligible for the basic endowment insurance of

enterprise employees, the basic medical and unemployment insurances for urban workers shall be brought into the scope of these insurances; those having livelihood difficulties and eligible for the minimum living guarantee for urban residents shall be brought into the scope of the minimum living guarantee for urban residents. If rural social endowment insurance and rural cooperative medical systems have been established, and the rural minimum living guarantee system is tried out locally, farmers affected by land acquisition that still have the agricultural status in household registration shall be brought into the scope of the corresponding insurances and guarantee; for those eligible for rural aid for the extremely poor and rural minimum living guarantee, their basic livelihood issues should be solved by providing them with rural aid for the extremely poor and rural minimum living guarantee. (2) Establish an endowment insurance system for farmers affected by land acquisition gradually. An endowment insurance system for farmers affected by land acquisition shall be established gradually throughout the province in about 3 years’ time. Farmers affected by land acquisition having attained 16 years of age upon land acquisition and not covered by urban basic endowment insurance may effect the endowment insurance of farmers affected by land acquisition voluntarily, the funds of which shall be raised jointly by the local government, the village (team) collective and individuals. The contribution of the government shall be disbursed from land transfer income and other incomes for compensated use of state land, and the contribution of the village (team) collective shall be disbursed from the land compensation, the operating income of the collective economic organization, and other incomes of the village (team) collective. The government and collective contributions shall be used to grant basic endowment insurance benefits, and the standard thereof shall not be less than 80 yuan per person-month. The personal payment shall be used as a supplement to endowment insurance benefits. All local governments may guide and encourage farmers to pay premiums to enrich endowment insurance funds and improve the level of endowment insurance. The starting age of receiving endowment insurance benefits shall be 60 years for men and 55 years for women. The finance, and land and resources authorities shall assist in transferring endowment insurance funds for farmers affected by land acquisition to the special account of social security funds opened by the local finance authorities timely and fully, while giving a notice to the labor and social security authorities of the same level. The personal payment, and the government and collective contributions shall be managed in separate account books, in which the latter shall be subject to municipal or county unified planning in principle. If the insured dies, the balance of the principal amount of his/her personal payment may be inherited with interest pursuant to law. Farmers affected by land acquisition eligible for the urban basic endowment insurance of enterprise employees may elect to effect such insurance. In this case, the personal payment to the endowment insurance of farmers affected by land acquisition shall be refunded to the insured at a time, and the endowment insurance of farmers affected by land acquisition shall be cancelled thereupon. 6. Strengthen the leadership of the employment and social security of farmers affected by land acquisition. Governments at all levels shall attach great importance to the employment and social security of farmers affected by land acquisition, and strengthen leadership practically. The leaders chiefly responsible shall take the lead personally. The labor and social security authorities are in charge of this work, and shall play a leading role practically, and the finance, land and resources, agriculture, civil affairs and public security authorities shall perform their respective responsibilities and work closely to ensure the employment and social security of farmers affected by land acquisition. The propaganda, supervision and inspection of the employment and social security of farmers affected by land acquisition shall be strengthened to protect the lawful rights and interests of farmers affected by land acquisition pursuant to law. All municipal and county governments shall formulate the implementation

procedures for the employment and social security of farmers affected by land acquisition according to these opinions and the practical situation, and promote the employment and social security of farmers affected by land acquisition steadily and actively. Where the endowment insurance system for farmers affected by land acquisition cannot be put into practice by 2008, the local people’s government shall explain the reason specifically to the provincial people’s government.

Anhui Provincial People’s Government June 12, 2005

Suzhou Municipality

Interim Procedures of Suzhou Municipality on the Basic Endowment Insurance of Farmers Affected by Land Acquisition

Article 1 In order to improve the social security of farmers affected by land acquisition, protect the lawful rights and interests of farmers affected by land acquisition, and promote balanced economic and social development, these Procedures have been formulated in accordance with the Circular of the State Council on Issues on Further Strengthening Land Control (Guo Fa [2006] No.31) and Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63) and by reference to our city’s practical situation. Article 2 These Procedures apply to the basic endowment insurance for farmers affected by land acquisition within the urban planning area, the economic and technological development zone of Suzhou City, and Yongqiao District, and the collection, payment, management and distribution of basic endowment insurance funds. Article 3 Registered agricultural population deprived of all farmland or having a per capita arable area of less than 0.3 mu after land acquisition, having attained 16 years of age upon land acquisition and having not effected the basic endowment insurance of urban workers after land acquisition with the approval of the State Council or the provincial people’s government may effect basic endowment insurance voluntarily. Article 4 Farmers affected by land acquisition are encouraged to move to towns. When farmers affected by land acquisition apply for the nonagricultural status in household registration, the public security authorities shall go through the relevant formalities for them at a nearby jurisdiction. Farmers affected by land acquisition turned into nonagricultural population and eligible for the minimum living guarantee for urban residents shall be brought into the scope of the minimum living guarantee for urban residents. Article 5 Promote the employment of farmers affected by land acquisition greatly. Job opportunities shall be developed actively to place farmers affected by land acquisition. Land users shall provide jobs suitable for farmers affected by land acquisition to them first. Farmers affected by land acquisition are encouraged to find jobs and start business independently. Unemployed farmers affected by land acquisition shall be brought into the reemployment service system gradually, and provided with free vocational training, advice on employment policies, employment information, vocational guidance and referral services. Article 6 The labor and social security authorities shall be in charge of the basic endowment insurance of farmers affected by land acquisition. The finance, land and resources, agriculture, civil affairs and public security authorities and the relevant town (neighborhood committee) and village committee shall promote the basic endowment insurance of farmers affected by land acquisition

within their respective scope of responsibilities. Article 7 Basic endowment insurance funds for farmers affected by land acquisition funds shall consist of unified funds and personal account funds, and be used specifically for the basic endowment insurance of farmers affected by land acquisition. Article 8 The unified funds shall consist of the contributions of the government and the village (team) collective, and the standards thereof shall be determined on the principle of slight surplus: (1) The contribution of the government shall be disbursed from land transfer income and other incomes for compensated use of state land; the standard is 20 yuan/m2 for transfer of land, in which that for industrial land and land for road construction under urban planning 6 yuan/m2; (2) The contribution of the village (team) collective shall be disbursed from the land compensation, the operating income of the collective economic organization, and other incomes of the village (team) collective; the standard is 4,500 yuan per capita for the insured. The government contribution shall be borne by the municipal finance, the finance of the economic and technological development zone or Yongqiao District depending on the jurisdiction of the land acquired. Article 9 The personal account of the basic endowment insurance of farmers affected by land acquisition funds shall consist of personal payment and interest. A farmer affected by land acquisition may establish a personal account voluntarily, and select from any of the payment standards of 3,600 yuan, 7,200 yuan and 10,800 yuan. If the farmer set up a personal account voluntarily, he/she shall go through the payment formalities upon application for the basic endowment insurance. Interest shall accrue on the principal of the personal account at the one-year bank deposit interest rate of the same period. Article 10 The government contribution to the basic endowment insurance of farmers affected by land acquisition to be raised shall be examined by the labor and social security authorities together with the finance, and the land and resources authorities, reported to the municipal or district government or the management committee of the development zone for approval, and transferred by the special financial account for the basic endowment insurance of farmers affected by land acquisition funds by the finance authorities according to the specified standard. The contribution of the village (team) collective shall be collected or withheld by the land and resources authorities together with the local town people’s government (neighborhood committee), and the personal payment shall be collected by the labor and social security authorities at a time, and transferred to the special financial account for the basic endowment insurance of farmers affected by land acquisition funds timely. Article 11 Basic endowment insurance funds of farmers affected by land acquisition shall be subject to management of the receipt and disbursement lines on the principle of special fund for special use. The unified funds and the personal account funds shall be managed in separate account books. The finance authorities shall be responsible for the management and disbursement of basic endowment insurance funds of farmers affected by land acquisition. Article 12 An eligible farmer affected by land acquisition shall apply for the basic endowment insurance as follows: (1) The farmer files a personal application; after such application is deliberated and adopted by the village (neighborhood) committee, the committee shall complete the Registration Form of Basic Endowment Insurance of Farmers Affected by Land Acquisition of Suzhou City and a list of farmers affected by land acquisition, and submit them to the town people’s government (neighborhood committee) for

examination; (2) After examination, the town people’s government (neighborhood committee) shall disclose the list to the public within 10 days; (3) After review by the labor and social security authorities and the land and resources authorities, shall submit the list to the municipal or district government or the management committee of the development zone for approval, and the labor and social security authorities shall establish a basic endowment insurance account for the insured. Article 13 The starting age of receiving monthly endowment insurance benefits shall be 60 years for men and 55 years for women. Farmers affected by land acquisition who have attained or exceed the age specified in the preceding paragraph upon validation of these Procedures shall receive endowment insurance benefits on a monthly basis from the month following the performance of the procedure specified in Article 12 above. Article 14 Basic endowment insurance benefits for farmers affected by land acquisition shall include basic endowment insurance benefit and personal account endowment insurance benefit. The basic endowment insurance benefit shall be paid from the unified funds, and the personal endowment insurance benefit from the personal account. After the personal account funds have been used out, the benefit shall be paid from the unified funds. In case of personal payment, where the village (team) collective has paid its due contribution in full pursuant to Paragraph 2 of Article 8 above, the standard of the endowment insurance benefit shall be as follows: (1) For personal payment of 3,600 yuan, 130 yuan per capita-month, in which the basic endowment insurance benefit is 100 yuan and the personal endowment insurance benefit is 30 yuan; (2) For personal payment of 7,200 yuan, 160 yuan per capita-month, in which the basic endowment insurance benefit is 100 yuan and the personal endowment insurance benefit is 60 yuan; (3) For personal payment of 10,800 yuan, 190 yuan per capita-month, in which the basic endowment insurance benefit is 100 yuan and the personal endowment insurance benefit is 90 yuan. In case of no personal payment, where the village (team) collective has paid its due contribution in full as stipulated, no personal account endowment insurance benefit shall be granted, and a basic endowment insurance benefit of 100 yuan per capita-month shall be granted For farmers affected by land acquisition before these Procedures come into effect, where the village (team) collective is unable to pay its due contribution, the basic endowment insurance benefit shall be reduced by 20 yuan, while Paragraphs 2 and 3 of this article shall otherwise apply. Article 15 If the insured dies, the balance of the principal amount of his/her personal account may be paid to his/her legal heir or designated beneficiary at a time. Article 16 Farmers affected by land acquisition eligible for the basic endowment insurance of urban workers may effect this insurance. Farmers affected by land acquisition who have effected the basic endowment insurance of urban workers shall no longer be entitled to the endowment insurance benefits stipulated herein; if a personal account has been established in accordance herewith, the funds in such account may be refunded to the insured at a time. Article 17 Basic endowment insurance benefits for farmers affected by land acquisition may be deposited to a state-owned commercial bank or used to purchase national debt for value maintenance or appreciation as stipulated, and shall not be used for investment, lending, mortgage or guarantee for others. Article 18 An endowment insurance reserve system shall be established for farmers affected by land acquisition. The reserve shall be withdrawn from annual land transfer and appreciation income and used as a supplement to endowment insurance

funds for farmers affected by land acquisition endowment insurance. Article 19 No entity or individual shall report or receive basic endowment insurance benefits for farmers affected by land acquisition falsely; if this provision is violated, not only the corresponding amount shall be recovered pursuant to law, but also such entity or individual shall be held legally liable. Article 20 If any agency concerned or a worker thereof neglects its/his/her duties, abuses its/his/her authorities or commits malpractice, so that the endowment insurance funds for farmers affected by land acquisition are not collected in full or are lost, embezzled, or basic endowment insurance benefits for farmers affected by land acquisition are deducted, it/he/she shall be given an administrative punishment pursuant to law; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law. Article 21 The specific procedures of each county on the basic endowment insurance of farmers affected by land acquisition shall be formulated by each county people’s country based on the county’s practical situation by reference hereto. Article 22 These Procedures shall be interpreted by the municipal labor and social security bureau. Article 23 These Procedures shall come into effect on January 1, 2008.

Suzhou Municipal People’s Government, Anhui December 29, 2007

Appendix 4 Public Participation and Minutes

Time March 15, 2009 Location Fengmiao Neighborhood Committee, Fengmiao Town Organizer Lingbi County Highway Bureau Leaders of Lingbi County Highway Bureau and Fengmiao Town Government, Participants Hohai University, ACVTC, 24 representatives of affected villagers (7 women) Topic Willingness for house demolition, land acquisition and resettlement Compensation fees should be distributed within the team, followed by land exchange. Some affected households unwilling to exchange their land may be granted cash compensation directly, and will not be allocated land. Details and The compensation for house demolition should be paid to each household, results which will secure its housing site itself. Borrow pits should be located in land with bad soil quality, and used as fishponds in the future. Time March 14, 2009 Location Zhenglou Village, Yugou Town Organizer Lingbi County Highway Bureau Leaders of Lingbi County Highway Bureau and Yugou Town Government, Participants Hohai University, ACVTC, 23 representatives of affected villagers (3 women) Topic Willingness for house demolition, land acquisition and resettlement The village committee has mobile land. If house demolition is involved, housing sites can be arranged for the affected households. Details and The compensation for land acquisition should be preferably paid directly to the results affected households for use on their production and livelihoods. The water system can be restored by the villagers after receiving a subsidy. Time March 16, 2009 Location Dongfeng Village, Dazhuang Town Organizer Sixian County Highway Bureau Leaders of Sixian County Highway Bureau and Dazhuang Town Government, Participants Hohai University, ACVTC, 18 representatives of affected villagers (4 women) Topic Willingness for house demolition, land acquisition and resettlement Since it has been stipulated in the village from 2001 that housing sites should be 23 meters away from the centerline of roads, the houses to be demolished Details and are discarded or auxiliary houses only. results The compensation for land acquisition should be preferably paid directly to the affected households. The village collective may also withhold a part for watercourse management and water conservancy improvement. Time March 13, 2009 Location Matai Village, Jieji Town Organizer Yongqiao District Highway Bureau Leaders of Yongqiao District Highway Bureau and Jieli Town Government, Participants Hohai University, ACVTC, 19 representatives of affected villagers (4 women) Topic Willingness for house demolition, land acquisition and resettlement 3 households of this village may be displaced. Since their houses were newly Details and built, they expect that their houses will not be demolished. results The compensation for land acquisition should be preferably paid directly to the affected households. It is unlikely to organize land exchange. Time March 13, 2009

Location Lanxi Village, Langan Town Organizer Yongqiao District Highway Bureau Leaders of Yongqiao District Highway Bureau and Lanxi Village Government, Participants Hohai University, ACVTC, 14 representatives of affected villagers (3 women) Topic Willingness for house demolition, land acquisition and resettlement It house demolition is involved, the villagers expect that their houses should be set back locally, or that the government should provide another housing site at Details and the same price. results Since the local people attach importance to land, few people can accept land exchange. The preferred compensation option for land acquisition is direct payment to the affected households. Time March 13, 2009 Location Wangzhuang Village, Caocun Town Organizer Yongqiao District Highway Bureau Leaders of Yongqiao District Highway Bureau and Caocun Town Government, Participants Hohai University, ACVTC, 21 representatives of affected villagers (6 women) Topic Willingness for house demolition, land acquisition and resettlement Time May 18, 2011 Location Office building of the Sixian County Highway Administration Bureau Organizer Sixian County Highway Administration Bureau Participants Sixian County Highway Administration Bureau, Hohai University Changes in land acquisition and house demolition impacts, and compensation Topic policies, etc. in Sixian County 1) Document [2009] No.132 of the Anhui Provincial Government applies to Details and compensation for land acquisition. results 2) Resettlement options should be decided by affected villages at village meetings. Time May 20, 2011 Location Lingbi County Government Organizer Lingbi County Highway Administration Bureau Persons responsible of the Lingbi County Highway Administration Bureau Participants and the Lingbi County Government, Hohai University Changes in land acquisition and house demolition impacts, and compensation Topic policies, etc. in Lingbi County 1) Document [2009] No.132 of the Anhui Provincial Government applies to Details and compensation for land acquisition. results 2) Resettlement options will be decided by affected villages at village meetings.

Discussion with affected household

Appendix 5 Resettlement Information Booklet

ADB Financed Project

Resettlement Information Booklet （RIB）

for X056 Shantou, Sixian County—Minxian, Yongqiao District Section

(updated)

Anhui Provincial Communications Investment Group Company

Anhui, China May, 2011

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A Brief description of the project According to the recommended option，X056 (Shantou, Sixian County—Minxian, Yongqiao District Section) starts from Shantou Town and south Sixian Town, runs through Xiangs/towns like Zhanglou, Dazhuang, Gonggou, Caochang, Dalu and Yugou to the west, and ends at Minxian, Suzhou, with a mileage of 106.006km. The whole section will be built as a Class II highway with a design speed of 80km/hour and a roadbed width of 10.5 meters. The construction investment in the subproject is about 365 million yuan, which will be raised from the following 3 sources: ADB lending, domestic bank lending and funds raised by the employer. The resettlement expenses are 35.2493 million yuan, accounting for 9.64% of total investment, all being domestic counterpart funds. The overall construction period of the subproject is 2 years. In conformity with the construction period, the Resettlement Implementation Plan will be implemented from the end of 2011 to 2013. B Summary of resettlement impacts of the project All living and production areas within the land acquisition range and affected by construction of the X056 (Shantou, Sixian County—Minxian, Yongqiao District Section) Project are areas by the project. The resettlement impacts of the subproject mainly include permanent and temporary land occupation, and the demolition of rural residential houses, involving 39 villages in 12 Xiangs/towns in Sixian County, Yongqiao District and Lingbi County, including 16 villages of 5 Xiangs/towns in Sixian County, 12 villages of 4 Xiangs/towns in Yongqiao District and 11 villages of 3 Xiangs/towns in Lingbi County. 540.49 mu of collective land will be acquired, including 377.05 mu of arable land, affecting 3813 people out of 1091 households; 8820.36 m2 of residential houses will be demolished, affecting 494 people out of 134 households; 330 mu of collective land will be occupied temporarily, all being arable land, affecting 1921 people out of 542 households temporarily,Resettlement impacts are shown in Table 1-1.

Table 1 Key Resettlement Impacts of the Project County Sixian Lingbi Yongqiao Total Town 5 3 4 12 Village 16 11 12 39 Total 128.85 169.86 241.78 540.49 Farmland 128.85 116.13 132.07 377.05 Land acquisition (mu) Construction land and 0 53.73 109.71 163.44 unused land Temporary land occupation (mu) 109.5 106 114.5 330 Demolition of residential houses（㎡） 2196.37 2393.6 4230.39 8820.36 Land-occupation House-holds 250 337 469 1056 only Population 864 1166 1663 3693 House House-holds 27 39 33 99 demolition only Direct Population 99 143 132 374 impact on Both House-holds 15 4 16 35 population land-occupation and Population 52 12 56 120 house-demolition House-holds 292 380 518 1190 Total Population 1015 1321 1851 4187

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County Sixian Lingbi Yongqiao Total House-holds 188 176 178 542 Temporary population Population 663 611 647 1921

C Legal Framework and Policies

C.1 Policies basis

The resettlement policies for the subproject are formulated based on ADB policies and the applicable laws, regulations and policies of China mainly, including: 1) ADB policies ¾ Involuntary Resettlement, November 1995 ¾ Resettlement Manual—A Practical Guide for Practice, 1998 ¾ Resettlement Operations Manual (OM/F2), October 2003 ¾ Gender and resettlement, February 2003 2) Laws, regulations and policies of the PRC ¾ Land Management Law of the People's Republic of China (effective from January 1, 1999, amended on August 28, 2004) ¾ Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28) (October 21, 2004) ¾ Provisions on Land and Resources Hearing (effective from May 1, 2004) ¾ Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR Fa [2004] No.238) (November 3, 2004) ¾ Measures for the Administration of Preliminary Examination of the Land Used for Construction Projects (Ministry of Land and Resources Order No.27) (November 1, 2004) ¾ Measures on Public Announcement for Requisition of Land (effective from January 1, 2002) 3) Provincial and local policies ¾ Circular of the Anhui Provincial People’s Government on Doing Well in Compensation and Resettlement for Land Acquisition to Protect Farmers’ Lawful Rights and Interests Practically ¾ Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061) ¾ Procedures of Anhui Province on the Implementation of the Land Management Law of the People’s Republic of China (December 1, 2002) ¾ Circular of the Anhui Provincial Finance Department on Farmland Occupation Tax on Highways ¾ Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63)(see Appendix 3) ¾ Notice of transfer of the Opinion on the Implementation of Land Acquisition and House Demolition for Transit Highways of Suzhou Municipality of the municipal communications bureau, land and resources bureau and construction bureau (Su Zheng Fa [2002] No.23) Interim Procedures of Suzhou Municipality on the Basic Endowment Insurance of Farmers Affected by Land Acquisition ¾ the Notice of the Anhui Provincial Government on the Promulgation of the Compensation Standard for Land Acquisition (APG [2009] No.132 of the Anhui Provincial Government)

C.2 Main Compensation Rate

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¾ Acquisition of collective land According to the Land Management Law of the People’s Republic of China, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the policies and regulations of Anhui Province on the implementation of the Land Management Law of the People’s Republic of China, the Notice of the Anhui Provincial Government on the Promulgation of the Compensation Standard for Land Acquisition ,the compensation fees for the acquisition of arable land include land compensation, resettlement subsidy and crop compensation. For the subproject, the compensation for land acquisition will be implemented based on the compensation rates specified in the Notice of the Anhui Provincial Government on the Promulgation of the Compensation Standard for Land Acquisition of Anhui Province.

Table 2 Compensation Multiples and Standards for Collective Land Acquisition Farmland Construction and unused land Distri Annual ct Town output Land Resettle Crop Compensati Land Resettleme Compensati /cou value compe ment compens on compensati nt on nty nsation subsidy ation standard on subsidy standard Dazhuan g,Liuwei, Sixia Huangw 1480 6 14 850 30450 5 5 14800 n ei,Shant ou,Wafa ng Fengmia 1420 7 14 850 30670 5 5.5 14910 Ling o,Yugou bi Youji 1360 7 14 850 29410 5 5.5 14280 Langan, Yon 1430 7 14 850 30880 5 5.5 15015 Zhihe gqia Jiejie,Ca o 1350 7 14 850 29200 5 5.5 14175 ocun

¾ Compensation for temporary land occupation

According to the provisions of the state and Anhui Province on temporary land occupation, land temporarily occupied for borrow pits will be compensated for at a time, while other temporarily occupied land will be compensated for at the annual output value of the land for the period of impact. Compensation fees for temporary land occupation include compensation for young crops/ground annexes, and land reclamation compensation. To reduce the impact of land acquisition on young crops, the subproject will be constructed after harvest or before seeding as the case may be. According to the construction design, the period of temporary land occupation is 2 years. The compensation standards for temporary land occupation are shown in Table 3.

Table 3 Compensation Standards for Temporary Land Occupation Type Unit Land type Sixian Lingbi Yongqiao Remarks Land occupied temporarily for Dry land 12,000 12,000 12,000 yuan/mu borrow pits Ordinary land occupied yuan/mu· year 4,000 4000 4,000 Based on 2 years temporarily Land reclamation Dry land 4,000 4,000 4,000 fee yuan/mu

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¾ Compensation standards for demolition of rural residential houses The compensation standards for houses of different types shall be determined according to the pertinent provisions by reference to the actual prices of the main types of the affected houses and the compensation standards for similar past projects, as shown in Table 4. Meanwhile, the housing plot will be provided and allocated prior to house demolition. The location of new residential plots will be decided by villages and APs.

Table 4 Compensation Standards for Rural Residential Houses and Annexes Sixian Lingbi Yongqiao Category Structural type Unit Remarks rate (yuan/ unit) Masonry m2 630 630 630 concrete (I) Masonry m2 580 580 580 concrete (II) Masonry m2 530 530 530 concrete (III) Masonry House m2 530 530 530 timber (I) compensation Masonry m2 480 480 480 timber (II) Masonry timber 2 m 430 430 430 (III) Others (lower than Masonry m2 380 480 480 timber (III)) Based on Moving subsidy yuan/person 3 3 3 6 months Other Living compensation Based on allowance for yuan/㎡·month 3 3 3 6 months transition period

C.3 Entitlement matrix

The entitlement matrix is established in accordance with the applicable policies, as shown in Table 5.

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Type of Degree of impact Owner Compensation and resettlement policy Implementation issues impact Village meetings to be responsible for deciding on the allocation of 1) Land compensation, resettlement subsidy and 33 villages of 12 funds, the redistribution of land and compensation for collective properties will be paid directly to Xiangs/towns; investment in income generating the village collective economic organization or village activities such as improved Permanent committee 540.49 mu of collective cultivation techniques/ irrigation/ land land small business development/ acquisition training. Higher level authorities to approve 1813 people out of 2) Resettlement subsidy will be paid. and monitor village level proposals 1091 affected 3) Ground annexes and crop compensation will belong to and, if required to facilitate training households their respective owners. programs 1) Based on the period of occupation and the amount of loss, including crop compensation and reclamation fee, with a Notified in advance and paid Temporary 330 mu of temporarily 1921 people out of 542 maximum occupation period of 2 years. accordingly. Restoration of land will land occupied land affected households 2) After the end of land occupation, the land will be restored be monitored by the farmers and occupation to the original condition, and appropriate economic local land bureaus. compensation will be granted. 1) House compensation: calculated at replacement costs of different structural types and quality standards Demolition 2) The affected people will receive a moving subsidy and a of 8820.36 m2 of rural 1921 people out of 542 Village and APs to decide on transition fee. residential houses will be demolished households location of new residential plots.. 3) A housing plot will be provided and allocated prior to house houses demolition 4) House registration fees are waived 1) Opportunities of prior employment are available, and 30% of unskilled job opportunities created by the Project will be provided to women. 1897 women in affected 2) The priority in receiving free technical training is available. Women's federation will arrange Women / households 8,000 persons will be trained, with not less than 4,000 awareness education females (50%) . 3) The affected people can have access to relevant information during resettlement, and participate in

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Type of Degree of impact Owner Compensation and resettlement policy Implementation issues impact consultation and resettlement. 4)Compensation agreement must be signed by spouses. 1) Collective retains land compensation and resettlement subsidy and provides monthly allowances and medical 1) Disabled, Wubao and 71 people out of 17 expenses are free to Wubao Widows households 2) Special allowances provided to the Disable 3) Priority of training and employment to labor force in these households The households will be rechecked 1) Skill training will be provided to 2 family members, at least during DMS and closely monitored 2) low-income or poor one by female. And Priority employment (such as outside until sustainable restoration is 37 people out of 9 households (under the jobs or work for the Project construction) will also be achieved households Vulnerable national poverty line) provided. groups 2) provided pension by local government 1% of total basic resettlement cost 1) Skill training will be provided to 2 family members, at least has been budgeted for these one by female. And Priority employment (such as outside special measures, and this amount jobs or work for the Project construction) will also be could be increased using 445 people out of 99 provided. contingencies. 3) seriously affected households losing 2) When possible, replacement land should be arranged as households above 10% land and 85 priority if desired by the affected household. households 3)Replacement of small and simple house will not be less than the minimum housing standards, or minimum compensation or assistance of provide free labor. 1) The affected special facilities will be compensated for by Special the implementing agencies to property owners, and then facilities 14 types, such as restored by property owners, or restored by the implementing Property owner and ground telegraph poles and trees agencies according to the former standard and size. annexes 2) The compensation for ground annexes shall be calculated in accordance with the pertinent provisions. Complaints Free of charge. All costs reasonably incurred will be and / All affected people disbursed from the contingency expenses of the subproject. appeals

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D Resettlement Organization

To ensure that resettlement is carried out successfully and the expected results are fulfilled, a top down organization must be set up at the implementation stage to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that necessitates the assistance and collaboration of multiple departments, the communications, land and resources, and finance authorities will participate and assist in the implementation of resettlement. Each of the affected towns and villages has 1-2 leaders responsible chiefly for the assistance in resettlement. The agencies responsible for land acquisition and house demolition in the subproject include: ¾ APCD Foreign-funded Project Management Office ¾ AHAB ¾ Municipal/county (including county-level municipal) highway administration bureaus (headquarters)11 ¾ Town resettlement offices ¾ Village committees (neighborhood committees) ¾ Project design agency ¾ Independent monitoring and evaluation agency ¾ Other agency: Land Resource Bureau, House Demolition Office, Women Federation and Labor Bureau, etc.

E Complaints and appeals

11 A construction headquarters will be set up for the subproject based on the highway administration bureau and in conjunction with the land and resources bureau, finance bureau, auditing bureau, demolition office, communications bureau and construction bureau to be responsible for resettlement.

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Administrative Procedure Law of the People’s Republic of China after receiving such disposition. Stage 5: If the complainant is still dissatisfied with the arbitration award, he/she may bring an action to a civil court in accordance with the Administrative Procedure Law after receiving such award. All agencies concerned will accept the affected people’ complaints and appeals free of charge, and all costs reasonably incurred will be disbursed from the contingency expenses of the project. At the whole construction stage, this appeal procedure will remain effective so that the affected people can use it to solve relevant issues. The above appeal channel and the right of appeal will be notified to the displaced persons through the participation process at a public meeting and the resettlement information booklet. In the meantime, appeal proceedings will be published to the affected population people through media.

F Implementation schedule of resettlement

The general resettlement schedule of the project has been developed according to the implementation progress of land acquisition of the Xuzhou-Mingguang Expressway Project. The specific implementation arrangements may be adjusted for any deviation in the overall progress of the project. The implementation schedule of resettlement is shown in Table 6.

Table 6 Implementation schedule of resettlement Responsible No. Resettlement Tasks Target Timing Status Agency 1 Disclosure 1.1 Information booklets(updated) 39 AVs PMO & AHAB June 2011 RP posted on ADB 1.2 IA, PMO & ADB Dec 2011 websites(updated) 2 Resettlement Plans & Budgets 2.1 Approval of RP & budgets (and CNY35.2493mill APG and PMO July 2011 compensation rates) ion 2.2 Village rehabilitation plans 39 AVs VCs Dec. 2011 3 Detailed Measurement Surveys (DMS) 3.1 Highway-X056 AHAB Apr. 2011 4 Compensation Agreements 4.1 Village land agreements 39 villages LRBs July 2011 4.2 Household land agreements 1091 AFs VCs July.2011 4.3 House/property agreements 134 AFs LRBs Aug.2011 5 House Relocation 5.1 Selection & approval of sites 134 AFs Town, VCs & AFs Aug.-Oct. 2011 5.2 Oct.2011-Mar. Site infrastructure preparation 14 sites Town & VCs 2012 5.3 House demolition 134houses Contractor/AFs Mar-Aug. 2012 5.4 New house construction 134 houses VC or AFs Mar.-Dec. 2012 5.5 Moving into new houses 134 AFs AFs Jan-Dec. 2012 6 Implementation of Rehabilitation Measures 6.1 Land compensation payments to AFs and land adjustment 33 villages Towns & VCs July.-Sep. 2011 (where applicable) 6.2 Implement village rehabilitation 33 villages VCs Sep.-Dec. 2011 plans 6.3 Advice for income restoration, Towns, VCs, 1190 AFs Oct.-Dec. 2011 starting business & jobs Labor, ACF 6.4 Implement Training programs 1190 AFs Labor Offices May-Dec. 2012 6.5 Identify vulnerable AF and Labor & Social 26 AFs July.-Dec. 2011 implement support measures Security, PMO 6.6 Identifying and hiring AF for 2000 APs PMO, Labor, Oct. 2011 to Oct..

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Responsible No. Resettlement Tasks Target Timing Status Agency project construction contractors 2013 7 Resettlement Capacity Building 7.1 Training for AHAB & LRB 15 people ADB Aug.2011 7.2 Training for county & town 400 officers and PMO and LRB Jan.-Feb. 2012 officials and village leaders leaders 8 Monitoring & Evaluation 8.1 Baseline surveys One RP Monitor 31 Dec. 2011 8.2 Set-up internal supervision As per RP PMO & IA 30 Jun. 2011 8.3 Contract external monitor One PMO 30 Jul. 2011 8.4 Quarterly (as Commencing Internal monitoring reports PMO & IA required) 30 July.2011 8.5 Jun.2012 1stReport External monitoring reports Semi-annual Monitor Jun. 2013 2nd Report 8.6 Dec. 2012 1stReport External evaluation reports Annual Monitor Dec. 2013 2nd Report 8.7 Resettlement Completion one Report IA & PMO June 2014 Report 9 Documentation of Consultation IA Ongoing 10 Documentation of Grievances IA Ongoing 11 Flow of Land Compensation and Resettlement Funds 11.1 - To IAs Initial funds June.2011 11.2 - To villages Most of funds IA July.-Dec. 2011 11.3 - To households Most of funds IA, VCs Aug.-Dec. 2011 12 Commence Land Acquisition and Civil Works 12.1 X056 AHAB July..2011 AF=affected family; AP=affected person; AV=affected village; IA=Implementing Agency; APG=Anhui Province Government; PMO=Project Management Office; AHAB=Anhui Highway Administration Bureau.;LAR=land acquisition and resettlement; RIB=resettlement information booklet; RP=resettlement plan; VC=village committees.

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Appendix 6 Detailed Resettlement Budget

A cost for collective land acquisition Land compensation fee Resettlement subsidy Crops fee Construction land Construction land farmland farmland farmland counties towns and unused land and unused land Dry Orchard Mine Dry Orchard Mine Paddy Dry forestry other other forestry other other land land land land land land land land Dazhuang, Yuan/mu 8880 8880 8880 8880 7400 7400 20720 20720 20720 20720 7400 7400 850 850 liuwei, mu 128.85 0 0 0 0 0 128.85 0 0 0 0 0 0 128.85 sixian huangwei, shantou, 114.42 0 0 0 0 0 266.98 0 0 0 0 0 0 10.95 wanfang 10,000 Yuan Yuan/mu 9940 9940 9940 9940 7100 7100 19880 19880 19880 19880 7810 7810 850 850 Fengmiao, mu 45.37 0 3.07 0 0 5.19 45.37 0 3.07 0 0 5.19 0 45.37 Yugou 10,000 Yuan 45.10 0 3.05 0 0 3.68 90.20 0 6.10 0 0 4.05 0 3.86 Lingbi Yuan/mu 9520 9520 9520 9520 6800 6800 19040 19040 19040 19040 7480 7480 850 850 Youji mu 70.76 0 10.11 0 6.12 29.24 70.76 0 10.11 0 6.12 29.24 0 70.76 10,000 Yuan 67.36 0 9.62 0 4.16 19.88 134.73 0 19.25 0 4.58 21.87 0 6.01 Yuan/mu 10010 10010 10010 10010 7150 7150 20020 20020 20020 20020 7865 7865 850 850 Langan, zhihe mu 21.88 0 7.16 11.35 21.88 0 7.16 11.35 38.4 6.23 0 21.88 10,000 Yuan 21.90 0 7.17 11.36 0 0 43.80 0 14.33 22.72 30.20 4.90 0 1.86 yongqiao Yuan/mu 9450 9450 9450 9450 6750 6750 18900 18900 18900 18900 7425 7425 850 850 Jieji, caocun mu 110.19 0.69 13.26 3.09 27.62 1.9 110.19 0.69 13.26 3.09 27.62 1.9 0 110.19 10,000 Yuan 104.13 0.65 12.53 2.92 18.64 1.28 208.26 1.30 25.06 5.84 20.51 1.41 0 9.37 total 10,000 Yuan 352.91 0.65 32.37 14.28 22.81 24.85 743.96 1.30 64.75 28.56 55.29 32.24 0.00 32.05

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B Total Resettlement Cost Sixian Lingbi Yongqiao Expense Expense Expense No Item Unit rate Quantity rate Quantity rate Quantity Total Proportion (10,000 (10,000 (10,000 （yuan/unit） (Unit) （yuan/unit） (Unit) （yuan/unit） (Unit) yuan) yuan) yuan) 1 Collective land acquisition / / / 392.35 / / 443.52 / / 570.16 1406.03 39.89% 2 Temporary land occupation mu 154.12 146.12 165.2 465.44 13.20% Temporary land occupation for borrow 2.1 mu 90.88 75.68 111.2 277.76 7.88% pits 2.1.1 Land compensation / 68.16 56.76 83.4 208.32 5.91% Cultivated land mu 12000 56.8 68.16 12000 47.3 56.76 12000 69.5 83.4 208.32 5.91% 2.1.2 Land reclamation fee / 22.72 18.92 27.8 69.44 1.97% Cultivated land mu 4000 56.8 22.72 4000 47.3 18.92 4000 69.5 27.8 69.44 1.97% 2.2 Other temporary land occupation / 63.24 70.44 54 187.68 5.32% 2.2.1 Land compensation Mu/year 42.16 46.96 36 125.12 3.55% Cultivated land Mu/year 4000 52.7 42.16 4000 58.7 46.96 4000 45 36 125.12 3.55% 2.2.2 Land reclamation fee / 21.08 23.48 18 62.56 1.77% Cultivated land mu 4000 52.7 21.08 4000 58.7 23.48 4000 45 18 62.56 1.77% 3 Rural residential houses 111.07 117.48 242.43 470.97 13.36% 3.1 Housing compensation 106.45 112.45 233.54 452.45 12.84% masonry concrete structure (I) ㎡ 630 196 12.35 630 0 0 630 641 40.38 52.73 1.50% masonry concrete structure (II) ㎡ 580 87 5.05 580 175 10.15 580 2718.24 157.66 172.85 4.90% masonry concrete structure (III) ㎡ 530 72.8 3.86 530 67.1 3.56 530 0 0 7.41 0.21% masonry timber structure (I) ㎡ 530 90 4.77 530 519.25 27.52 530 160 8.48 40.77 1.16% masonry timber structure (II) ㎡ 480 1194.95 57.36 480 312.95 15.02 480 0 0 72.38 2.05% masonry timber structure (III) ㎡ 430 392 16.86 430 1213.74 52.19 430 0 0 69.05 1.96% Other structure （ lower than masonry ㎡ 380 163.62 6.22 380 105.56 4.01 380 711.15 27.02 37.25 1.06% timber structure (III)） 3.2 Other compensation ㎡ 4.61 5.03 8.88 18.52 0.53% Moving subsidy ㎡ 3 2196.37 0.66 3 2393.6 0.72 3 4230.39 1.27 2.65 0.08% Transition subsidy ㎡·month 3 2196.37 3.95 3 2393.6 4.31 3 4230.39 7.61 15.88 0.45% 4 Ground annexes 105.15 91.42 46.11 242.68 6.88% Public toilets / 180 8 0.144 180 7 0.126 180 2 0.036 0.306 0.01% 10KV telegraph poles / 1500 22 3.3 1500 7 1.05 1500 20 3 7.35 0.21% 380V telegraph poles / 100 155 1.55 100 151 1.51 100 91 0.91 3.97 0.11% 380V wooden telegraph poles / 50 7 0.035 50 5 0.025 50 2 0.01 0.07 0.00% Transformers / 20000 37 74 20000 35 70 20000 15 30 174 4.94% canals yuan/㎡ 150 990 14.85 150 870 13.05 150 390 5.85 33.75 0.96% Tractor plowing roads yuan/㎡ 80 1040 8.32 80 495 3.96 80 465 3.72 16 0.45% Tombs (earth) / 300 4 0.12 300 3 0.09 300 6 0.18 0.39 0.01% Communication cable Yuan/M 80 11 0.088 80 18 0.144 80 40 0.32 0.552 0.02% power cable Yuan/M 40 42 0.168 40 30 0.12 40 40 0.16 0.448 0.01% Pumped wells, large opening wells / 2000 7 1.4 2000 3 0.6 2000 6 1.2 3.2 0.09%

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Sixian Lingbi Yongqiao Expense Expense Expense No Item Unit rate Quantity rate Quantity rate Quantity Total Proportion (10,000 (10,000 (10,000 （yuan/unit） (Unit) （yuan/unit） (Unit) （yuan/unit） (Unit) yuan) yuan) yuan) Big trees (non fruit) / 10 1045 1.045 10 667 0.667 10 662 0.662 2.374 0.07% Small trees (non fruit) / 6 119 0.0714 6 109 0.0654 6 57 0.0342 0.171 0.00% Scattered fruit tree / 30 18 0.054 30 3 0.009 30 9 0.027 0.09 0.00% Total of 1～4 762.690 798.540 1023.9 2585.13 73.34% 5 Land acquisition management fee 10,000 yuan 4% 392.35 15.694 4% 443.52 17.741 4% 570.16 22.806 56.24 1.60% Surveying, design and research 6 10,000 yuan 3% 762.69 22.881 3% 798.54 23.956 3% 1023.9 30.717 77.55 2.20% expenses 7 Administrative expenses 10,000 yuan 5% 762.69 38.135 5% 798.54 39.927 5% 1023.9 51.195 129.26 3.67% 8 Technical training expenses 10,000 yuan 3% 762.69 22.881 3% 798.54 23.956 3% 1023.9 30.717 77.55 2.20% External monitoring and evaluation 9 10,000 yuan 2% 762.69 15.254 2% 798.54 15.971 2% 1023.9 20.478 51.70 1.47% expenses 10 Subsidy for vulnerable groups 10,000 yuan 1% 762.69 7.627 1% 798.54 7.985 1% 1023.9 10.239 25.85 0.73% 11 Contingency expenses 10,000 yuan 10% 953.91 95.391 10% 990.04 99.004 10% 1260.52 126.052 320.45 9.09% 12 Land acquisition taxes 10,000 yuan 68.754 61.967 70.473 201.19 5.71% Farmland occupation tax mu 1334 128.85 17.189 1334 116.13 15.492 1334 132.07 17.618 50.30 1.43% Farmland reclamation fee mu 4002 128.85 51.566 4002 116.13 46.475 4002 132.07 52.854 150.90 4.28% Total of 5~12 286.616 290.508 362.677 939.80 26.66% Total cost 1049.306 1089.048 1386.577 3524.93 100.00%

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Appendix 7 External Monitoring Outline

A Purpose of resettlement monitoring and evaluation According to ADB’s resettlement policy, the resettlement work of the Xuzhou-Mingguang Expressway Project will be subject to external monitoring and evaluation. The land acquisition and resettlement work of project will be tracked and evaluated by checking the progress, funds and management of land acquisition, house demolition and resettlement, and making a comparative analysis of the variation and restoration of the production level and standard of living of the displaced persons affected by land acquisition. While reports are submitted to ADB, the Anhui PMO and the competent authorities regularly (twice a year during the implementation period), information and suggestions will also be provided as a reference for decision-making. Through external monitoring and evaluation, ADB and the implementing agencies can fully understand if the land acquisition and resettlement work is implemented on schedule and according to the quality standard, point out existing issues, and propose suggestions for improvement. B Scope of resettlement monitoring and evaluation (1) Monitoring and evaluation of implementation progress of land acquisition and house demolition ¾ Including: ① progress of land acquisition; ② progress of temporary land occupation; ③ demolition and rebuilding of rural houses; ④ restoration of infrastructure (2) Monitoring and evaluation of availability and utilization of funds ¾ Including: ① availability of funds; ② utilization of funds (planned vs. actual) (3) Monitoring and evaluation of the standard of living of the displaced persons ¾ Including: ① production level and standard living of the displaced persons before displacement; ② production level and standard living of the displaced persons after displacement; ③ comparative analysis and evaluation of production level and standard living of the displaced persons before and after displacement (4) Capacity evaluation of the implementing agencies, public participation, complaints and appeals C Technical route The technical route of external monitoring and evaluation is shown in Figure 1.

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Project initiation

Preparation of monitoring and evaluation outline

Preparation of survey outline, survey form, typical household record card

Design of sampling survey plan

Baseline survey

Setup of monitoring and evaluation management info system

Monitoring and survey

Regional social Monitoring by Monitoring of Monitoring of households and economic implementing villages affected by affected by land acquisition survey agencies land acquisition / house demolition

Compilation of monitoring data, setup of database

Comparative analysis and evaluation

Preparation of monitoring and evaluation report

No Is resettlement monitoring complete?

End

Figure 1 Technical Route Map of External Monitoring

D External monitoring agency The external resettlement monitoring and evaluation work of the project shall be undertaken by an external monitoring agency entrusted by the Anhui PMO and accepted by ADB. E Organization and division of labor of resettlement monitoring and evaluation ¾ The Anhui PMO shall entrust the external monitoring agency to take charge

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of the survey, data collection and computational analysis for monitoring and evaluation, and to review the corresponding findings. ¾ The external monitoring agency shall set up a “resettlement monitoring and evaluation team of the Xuzhou-Mingguang Expressway Project”, whose task is to monitor and evaluate the resettlement work of the project, prepare the monitoring and evaluation outline, select monitoring sites, take charge of field survey, monitoring and in-house analysis, and prepare resettlement monitoring and evaluation reports according to the ADB Policy on Involuntary Resettlement. ¾ During the field monitoring and survey of the resettlement monitoring and evaluation team, the Anhui PMO shall offer assistance in staffing and traffic. F Methods of resettlement monitoring and evaluation ¾ A combination of field survey, computational analysis and comprehensive expert evaluation shall apply to monitoring and evaluation. ¾ The survey shall be conducted comprehensively. The progress, funds, organization and management of implementation shall be surveyed in all aspects, while the displaced households shall be subject to sampling survey. ¾ The sampling survey shall be based on random sampling to track the fixed displaced households in the typical sample. Sampling rates: 10% of households affected by land acquisition, 20% of households affected by house demolition and 50% of the affected villages. ¾ The complete survey shall be conducted in the methods of form survey, discussion and literature search, etc. ¾ Except written materials, photos, audio and video records, real objects shall also be collected. G Reporting of external resettlement monitoring and evaluation The external monitoring agency shall submit a resettlement monitoring report to the Anhui PMO and ADB semiannually, and a resettlement evaluation report annually.

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