Resettlement Policy Framework of Xining Urban Transit Project

Home , Chengbei District, Chengdong District, Chengxi District

RP1456

Public Disclosure Authorized The World Bank Funded Qinghai Xining Urban Transit Project

Resettlement Action Plan

Public Disclosure Authorized

Project Construction Management Office for the World Bank Funded Qinghai Xining Urban Transit Project

March 2013 Public Disclosure Authorized

Commitment Letter

The World Bank Funded Qinghai Xining Urban Transit Project will involve land acquisition, demolition and resettlement. Thus, in order to protect the basic rights and interests of the displaced persons and restore or raise the production or living standard of the displaced persons after relocation, the Resettlement Action Plan is prepared as the basis for the implementation of land acquisition, demolition and resettlement of this project in accordance with the involuntary resettlement policy (OP4.12) of World Bank and the pertinent laws and regulations of the central and local governments. Xining municipal government has reviewed the Resettlement Action Plan and consented that the project is to be implemented in accordance with the requirements of this Plan to guarantee the distribution of resettlement funds at full amount in time and the proper relocation of the affected population with fair compensation. We therefore enjoin the Project Construction Management Office for the World Bank Funded Qinghai Xining Urban Transit Project to take charge of the implementation and management of land acquisition, demolition and resettlement of this project by coordinating related departments.

Xining Municipal Government (Official Seal) Mayor (or deputy mayor-in-charge)： (signature) (date)

Foreword I. Purpose of preparing this resettlement action plan 1 The resettlement action plan (RAP) is prepared in accordance with the applicable laws of the People’s Republic of China and local regulations and a series of provisions in the Bank Operational Policy OP4.12 on Involuntary Resettlement for the purpose of “developing an action plan for resettlement and restoration for the people affected by the project, so that they benefit from the project, their standard of living is improved or at least restored after the completion of the project”.

II. Definitions of terms Displaced persons 2 Based on the criteria for eligibility for compensation, “Displaced Persons” may be classified in one of the following three groups: a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); b) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the Resettlement Plan; and c) those who have no recognizable legal right or claim to the land they are occupying. 3 Persons covered under paragraphs 2(a) and (b) are provided compensation for the land they lose, and other assistance. Persons covered under paragraph 2(c) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objective set out in this policy, if they occupy the project areas prior to a cut-off datei established by the borrower and acceptable to the World Bank. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in paragraph 2(a), (b), or (c) are provided compensation for loss of assets other than land.

Compensation and resettlement measures 4 To address the following impacts of the involuntary taking of land: (i) displacement or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the APs must move to another location, a Resettlement Plan or a resettlement Policy Framework shall be prepared to cover the following: (a) The Resettlement Plan or resettlement Policy Framework includes measures to ensure that the displaced persons are: (i) informed about their options and rights pertaining to resettlement; (ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and (iii) provided prompt and effective compensation at full replacement costii, for losses of assets attributable directly to the project. (b) If the impacts include physical displacement, the Resettlement Plan or resettlement Policy Framework includes measures to ensure that the displaced persons are: (i) provided assistance (such as moving allowances) during displacement; and (ii) provided with residential housing, or housing sites, or, as required, agricultural sites for i Normally, this cut-off date is the date the census begins. The cut-off date could also be the date the project areas was delineated, prior to the census, provided that there has been an effective public dissemination of information on the area delineated, and systematic and continuous dissemination subsequent to the delineation to prevent further population influx. ii "Replacement cost" is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into account.

which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site. (c) Where necessary to achieve the objective of the policy, the Resettlement Plan or resettlement Policy Framework also includes measures to ensure that displaced persons are: (i) offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; (ii) provided with development assistance in addition to compensation measures described in paragraph 4(a)(iii), such as land preparation, credit facilities, training, or job opportunities. 5 Cut-off date: means the date of publication of the announcement of land acquisition and property demolition in this project. After this date, the displaced persons shall not build, rebuild or expand their properties; shall not change the uses of their properties and land; shall not lease their land, lease, sell or purchase their properties; and any person that moves in after this date shall not qualify as a displaced person.

1. Project Introduction and the Results of the Already Conducted Public Consultation

1.1 Project background

Xining is going through a fast process of urbanization and motorization, as urban construction land increased from 63.8km2 in 2003 to 72.9km2 in 2009 and the car parc increased ten fold from 1991 to 2011.

In such context, the growth in roads can’t catch up with the increase in quantity of motor vehicles in this city, the contradiction between the two being increasingly apparent. During 2000 to 2009, the annual rate of growth in total length of roads within its jurisdiction was only 3.4%, but the annual rate of increase in car parc (excluding motorcycle) reached 14.8%.

The supply of road facilities is far from enough to meet the demands arising from the increase of motor vehicles and therefore the traffic jam is getting worse in Xining, which is reflected on: the disordered traffic and frequent occurrence of accidents; the lower running speed of buses, which has seriously affected the transporting capacity and efficiency; the sharp contradiction between supply and demand of parking space has largely blocked the traffic smoothness.

In order to improve the urban infrastructure of Xining city to meet the demands of urban traffic development, Xining city applied for loans from the World Bank to use them in the construction of urban infrastructure project. This project includes the construct of urban roads, public transit and intelligent transportation system as well as capacity building so as to improve Xining’s urban traffic conditions. The overall goal is to supply rapid, comfortable and safe services to citizens to facilitate the traffic between the center of the city and its western areas by implementing the green transport demonstration corridor project characterized by human orientation and buses priority. 1.2 Project composition

Xining urban transit project mainly includes four subprojects: 1) urban roads; 2) public transit; 3) intelligent traffic management; and 4) organization setting and capacity building. See table 1-1 for the introduction to project contents. The

5 subproject of urban roads mainly contains three urban roads to be newly constructed: Xicheng Avenue, westward extension of Western Wusi Road and the Fifth Road, with land acquisition and demolition involved. In the subproject of public transit, Yanxiaocun (Yanxiao Village) public transit transfer junction involves land acquisition, but the land acquisition had been completed before the pre-appraisal of the World Bank funded project, so it won’t be considered in this Resettlement Action Plan.

Table 0-1 Introduction to Project Contents Project Subproject Contents of Construction Impacts 1) Xicheng Avenue (from south ring expressway overpass toll station to Qaidam Road), about 3.70km long from south to north, serving as urban trunk road, width of boundary lines: 50m, two-way six lanes; newly construct water supply & drainage system, rains and sewage pipe network, general pipe trench, as well as the supporting facilities, including lighting, traffic management and urban landscaping. 2) Westward extension of Western Wusi Road (from Xicheng Avenue to Fourth Road), about 3.49km long from west to east, Land serving as urban trunk road, width of boundary lines: 60m, acquisition 1. urban roads two-way eight lanes; newly construct water supply & drainage and system, rains and sewage pipe network, general pipe trench, as demolition well as the supporting facilities, including lighting, traffic involved management and urban landscaping. 3) Fifth Road (from westward extension of Western Wusi Road to Qaidam Road), about 1.02km long from south to north, serving as urban trunk road, width of boundary lines:40m, two-way six lanes; newly construct water supply & drainage system, rains and sewage pipe network, general pipe trench, as well as the supporting facilities, including lighting, traffic management and urban landscaping. 1) Wusi Road integrated public transit corridor, including arrangement of bus lane, motor vehicles traffic organization schemes, crossing widening and canalized reconstruction, Land Xining roadside entrances reconstruction, pedestrian crossing acquisition urban reconstruction, non-motor vehicle traffic improvement, involved transit parking improvement, coordinated control of area traffic only in project 2. public transit signal, bridge works, water drainage and other piping works, Yanxiaocun landscaping works, lighting works etc. public 2) Yanxiaocun public transit transfer junction, including the transit layout of the public transit transfer junction, energy saving transfer and emission reducing facility and its monitoring, junction environmental design, traffic safety and personal safety related facilities, passenger facilities and operation facilities. 1) Upgrading and improvement of traffic signal control system 2) Construction of bus signal priority system 3) Construction of traffic video surveillance system No land 4) Construction of traffic guidance system 3. intelligent acquisition 5) Construction of traffic flow monitoring system traffic or 6) Construction of electronic police system management demolition 7) Construction of traffic incidents monitoring system involved 8) Bus lane violations snapshot system 9) Construction of police mobile system 10) Upgrading and reconstruction of intelligent traffic management and command center No land 4. organization 1) Research on urban transit related issues acquisition setting and 2) Project management and technical support or capacity 3) Professional skill improvement and capability training demolition building 4) Publicity and education involved

1.3 Project preparation and implementation progress of Resettlement Action Plan

The expert panel from the World Bank conducted pre-identification for the World Bank Funded Qinghai Xining Urban Transit Project during October 17-18, 2011 and conducted formal identification and initially determined the organizations that would be responsible for the preparation of the Feasibility Report, Resettlement Action Plan and Environmental Impact Assessment Report. During February 8-15, 2012, the staff of the resettlement consulting agency – Center for Involuntary Resettlement Research of China Three Gorges University went to Xining, where they made a door-to-door physical indicators investigation and had communication with the project office about the related projects and the compensation policies for land acquisition. In April 2012, China Three Gorges University received from the project office the 1:500 map of the project boundary area in electronic form which indicates the topographic and land type conditions explicitly and established the land information system by using ARC-GIS software. During May 10-11, 2012, the expert panel from World Bank investigated the technical progress of the preliminary preparation work. More specifically, the expert panel had a detailed assessment on the work including feasibility study, resettlement action plan and environmental impact assessment and put the opinions agreed based on the investigation results into the memorandum. Soon after this meeting, the project office concluded a cooperation contract regarding the preparation of the resettlement action plan with the resettlement consulting agency – Center for Involuntary Resettlement Research of China Three Gorges University. During June 12 to June 20 of 2012, the resettlement consulting agency discussed with Xining Project Office on detailed rules and work scheme for the household survey of physical indicators, and during June 21 to July 15 after issuing the Notice of Ceasing Construction in the affected area in June 20, the first physical indicators investigation was developed in the support of local government organs and the consulting agency also carried out socio-economic survey and the survey about resettlement wish among the affected households. During August to September of 2012, the consulting agency sorted out and analyzed the materials obtained from the first field investigation, established database and submitted investigation report. On December 5 and 6, 2012, World Bank experts, Xining project office and other related agencies reviewed the midterm technical proposal of the feasibility report, and the consulting experts on 8 resettlement and environmental impact assessment also reported their work progress at the conference and minutes of meeting was formed to guide the work of next stage. During January 8-18, 2013, the consulting agency, with the aids of the project office and the governments at all levels in the affected area, carried out public participation and consultation activities among the affected villagers to solicit their opinions and wishes on compensation standard and resettlement methods, including questionnaire survey, symposium and individual interview. During this period, the project office and the consulting agency conducted investigation and statistics on the increment of real objects to be demolished. Finally, On the basis of the above mentioned investigation and public consultation, the Center for Involuntary Resettlement Research of China Three Gorges University finished the first draft of the Resettlement Action Plan in February 2013. 1.4 Identification of related projects

Related projects means other projects directly related to the function or benefits of the project construction during the project preparation or implementation process, that is, the projects related to this project and constructed synchronously with this project during the project preparation and construction process but not funded by World Bank loans.

The identification of the related projects is very important during project design process. Xining project office and World Bank experts have also identified the related projects when doing identification of this project. Analysis indicates that the related projects of this project mainly include South Ring Expressway, Western Section of Western Wusi Road (the Fourth Road – Huangshui Road), and the reconstruction and expansion of Qaidam Road. As for South Ring Expressway, land acquisition and resettlement work had been started before the identification of the World Bank funded project (2011) and Resettlement Due Diligence Report shall be submitted according to the involuntary resettlement policies of World Bank. Although Yanxiaocun public transit transfer junction is part of the World Bank Funded Xining Urban Transit Project, the work of land acquisition and occupation had been completed before the identification of this project, so it is identified as the related project incorporated in the Due Diligence Report (See Appendix 2). Planning Road 1 and Planning Road 2, as the interior paths within Yanxiaocun public transit transfer junction, are covered in the

Due Diligence Report. The feasibility report has been completed for the construction of Western Section of Western Wusi Road (the Fourth Road – Huangshui River section) and the reconstruction and expansion of Qaidam Road. Xining municipal government guarantees that the resettlement work involved in these related projects will be implemented in accordance with the resettlement policies adopted for World Bank funded project. According to the involuntary resettlement policies of World Bank, a resettlement policy framework has been prepared for them (see Appendix 3).

Table 0-2 The Related Projects Quantity of land to be Construction Subproject Contents requisitioned and houses to time be demolished Road length: Xining Qaidam Road Land to be requisitioned: 1808.73m, with width June 2014 to (Wuzhong Village – about 54mu, structures to be expanded from 20m to June 2015 Yanxiao Village) demolished: about 22073m2 40m Land to be requisitioned: Western Section of 228mu; there are few western Wusi Road structures along the road, Road length: Simultaneously (the Fourth Road – only several small 2532.26m, width: 60m with this project Huangshui Road) to processing plants at the be newly constructed starting point on both banks of Huangshui River 1.5 Public participation already conducted and main results

The information about the public participation activities conducted during project preparation is shown in Table 0-3.

Table 0-3 Main public participation activities during the project preparation Organization Content and Comments and Date Participants Actions and effects Unit theme suggestions Advisory organizations, Xining World project Fairness, Result of the survey f From Survey of Bank Funded offices, justice, and physical quantity is June, physical Project township accuracy shall obtained, which won the 2012 to quantity Construction government, be followed acceptance of the village July, affected by the Management affected during the groups and displaced 2012 project Office village survey persons groups and persons Personnel Enhancing the Xining World from the understanding of the Bank Funded From Social-economic Information implementing project, gaining the Project June,2011 survey; survey disclosure; units and understanding and support Construction to July, of resettlement transparency and affected for the resettlement policy Management 2011 wishes justice of policies village and knowing about the Office groups and wishes of displaced

Organization Content and Comments and Date Participants Actions and effects Unit theme suggestions persons persons on resettlement.

1. The majority

of people hoped 1.Monetary resettlement to obtain shall be the main measure monetary for land acquisition; compensation for meanwhile, social the land endowment insurance, acquisition to training, and job Advisory make up the loss opportunities shall be organizations, incurred from the provided; Xining World project Survey of land acquisition; 2. Compensation of house Bank Funded offices, resettlement 2. Compensation demolition shall comply Project January, township intent; standards for with the replacement price, Construction 2013 governments, consultation of house demolition selection of resettlement Management affected resettlement shall be made houses shall comply with Office village plan based on the the principle of proximity groups and current policies and shall be planned and persons applied in Xining built concentratedly. and the Meanwhile, the compensation government shall provide amount shall be the accompanying sufficient to buy construction of resettlement infrastructures and public houses service facilities.

Xining World Township Soliciting public Bank Funded From late governments, opinions on the Resettlement Action Plan is Project February, affected Resettlement published on internet on Construction 2013 to village Plan and March 28, 2013. Management April groups and improving the Office persons plan

Table 0-4 shows the feedbacks to the opinions collected through public participation and consultation.

Table 0-4 Major opinions collected through public participation and consultation and corresponding solutions Opinions of the Issues Solutions affected population After repeated surveys and consultation, the project management office and the planning bureau delimit a resettlement area of 30mu, east to Taobei Village at a distance of 150m and on the north side of the westward extension of Western Wusi Road, and plan to build two multi-storey apartment buildings with sufficient resettlement housing for dislocated households to choose. A piece of land with area 15mu in east of Xicheng Avenue and 200m south of Taobei Village and Wangjiazhai is allocated to be used for the construction of one Wangjiazhai Village Selection of multi-storey building for the resettlement of relocated both accept the resettlement households. This resettlement site has been approved by the resettlement in sites Planning Bureau. Taobei and Wangjiazhai village committees multi-storey residential guarantee that the resettlement houses will be constructed apartments. according to the basic construction procedures and the supervision from superior competent authority and from the mass will be welcomed. The construction costs of resettlement site come from the compensation for homestead as initial fund and from partial compensation for house demolition. The project office promises to finish infrastructure construction in resettlement site to avoid extra burden for the relocated households. Policy on use of land acquisition compensation fund in this project: the compensation for contracted land shall be distributed by district/county resettlement office directly to the contracting households in the form of passbook or bank card number without any intermediate link; the compensation for collective land shall be given to the collective and its use shall be determined through consultation at villagers meeting. The compensation for house demolition for each household is A part of affected apparent, because house compensation policy and standards Utilization population worries that will be published and the results of physical indicators and they cannot obtain the investigation must be signed by relocated households for distribution compensation directly acceptance. Agreement will be signed before house demolition of which may be held and each household will be assigned with a designated bank compensation back or embezzled by account. After signing the agreement, the compensation fund funds some intermediate will be transferred by the project office or Chengbei District links. government directly to their designated bank accounts to prevent that the fund is retained or embezzled. Both villages will self-fund the construction of resettlement houses, so village committees promise to collect the homestead compensation from relocated houses for such purpose, and if it is insufficient, partial compensation for house demolition will be taken from the relocated houses based on the cost price of construction and installation.

Opinions of the Issues Solutions affected population The resettlement will be organized in accordance with the principle of “resettlement before demolition” and relocation grants will be given to the dislocated households. The Concern They worry that the transition period is 30 months, with transitional allowance: 4 about the transitional period will Yuan/m2/month. If extension is necessary, the dislocated transitional be long. households will be arranged at the public rental houses at the period nearby tools factory area for free during extension period, but without extra allowance. The relocation grants meet the needs for the rental. The village collectives will use part of the compensation for collective-owned land to purchase or update the new rural social pension insurance. For land-expropriated households with a per capita land area of no more than 0.3 mu, endowment insurance will be handled in accordance with the They hope relevant Concern Circular of the Land and Resources Bureau of Xining on procedures for their about old-age Forwarding the Notice of the General Office of Qinghai old-age security can be security Provincial Government on Forwarding the Interim Measures dealt with. of the Department of Human Resources and Social Security and Other Departments concerning Social Endowment Insurance of the Land-Expropriated Peasants (No. 11[2013] of Xining Land and Resources Bureau). The affected villagers have known the related policies. According to the villager’s opinions, village committees are responsible for the construction and management of resettlement houses. The resettlement construction must be done according the state capital construction Construction procedures and resettlement sites must keep in line and They hope the with the overall urban plan. The village committees management resettlement in will notify the progress of the resettlement site plans of multi-storey resettlement residential apartments. and construction of resettlement houses to villagers, houses and accept the opinions from villagers. The project office helps village committees deal with the land procedures for the multi-storey apartments, guides the construction of resettlement sites, and assist the censorate to inspect the use of resettlement funds. (1) Per capita housing area of the resettlement house is 50 m2, with one household as a unit. (2) For a demolished house whose per capita housing area is lower than 50 m2, the household can purchase the resettlement house at the cost price with a per capita housing area of 50 m2. If the per capita housing area of the resettlement house They hope the exceeds 50 m2, the household can purchase the resettlement Concern resettlement house house at a favorable price equal to the cost for the excess part about 2 will be large enough within 10% of 50 m , and at the market price for the rest resettlement and the allocation can excess part. houses be fair. (3) For a demolished house whose area is larger than that of the resettlement house, monetary compensation will be paid for the excess part. (4) House allocation will be made public by village committee. (5) the village committees will sign the agreements with the villagers on the placement apartment assignment and the purchase.

Opinions of the Issues Solutions affected population Storage for They hope it can be A special warehouse will be built at the resettlement sites for agricultural convenient. storing agricultural implements. implements They hope they are Rights of received more The disabled has the preoption right on the floor selection. disabled attentions 1) Provide pension insurance policy for the land-expropriated peasants with women covered as soon as possible; 2) Establish an information openness and transparency mechanism in respective of land acquisition and house demolition to ensure that women enjoy equal rights to compensation, to know and to sign for the use and distribution of property; 3) Establish a menu-type employment and training system to offer one package service including demands of enterprises, How will affected supply of training and selection of women according to their females fully enjoy the Affected interests so as to decrease the blindness of women when development females getting a job. opportunities brought 4) Two hotels with different levels will be built up in by this project? Yanxiaocun public transit transfer junction. They will give priority to provide more job opportunity for the local women. So do same other commodity networks. 5) Exert the effect of women organizations to the full extent, such as Women’s Federation and Family Planning Association and integrate women development and gaining of opportunities well with activities of these organizations to attract and guide women to enjoy the opportunities brought by the development.

About the concrete process and details of public participation and consultation, see the chapter 9 of this report “public participation and consultation”.

2. Analysis of project impacts

According to the involuntary resettlement norms and requirements of World Bank, a field investigation is necessary before project implementation to learn about the project impacts suffered from by the displaced persons. It aims to comprehensively collect information about the conditions of the affected households, the type and quantity of the houses to be demolished and the type and quantity of land to be requisitioned in the affected area and about the socio-economic development of the affected area so as to provide reference data for project design optimization and provide information for the preparation of Resettlement Action Plan.

On June 20, 2012, the government of Chengbei District of Xining and Xining Project Office jointly published the Notice of Ceasing Construction in the affected area. On July 21, under the lead of Xining project office, the Center for Involuntary Resettlement Research of China Three Gorges University (the resettlement consulting agency) conducted the first physical indicators investigation. An investigation team was formed consisting of the staff of the assessment agency, the officers from the governments of district-, county- and town (township)-levels and the village leaders. This investigation that was conducted seriously provided reliable data and information for the formulation of Resettlement Action Plan. During this process, the physical quantity was inspected for all the land to be requisitioned and the residential and nonresidential houses to be dismantled in the affected area. And at the same time, the Working Group for the Preparation of Resettlement Action Plan investigated the socio-economic conditions of the villages, subdistricts and households affected by land acquisition and demolition. The investigation of the physical quantity of land acquisition and demolition was attended by all affected households. During January 8-18, 2013, the consulting agency carried out public consultation activity to examine the resettlement schemes and the wishes of the displaced persons with the support from the project office and local government, and through this activity, it was found that the increment of physical quantity of house demolition in the affected area was very large after the first physical indicators investigation, so site survey and map measurement were conducted for increment of physical quantity of house demolition. Main results of the first and second investigation are summarized as follows:

2.1 Overview of impacts of land acquisition and demolition

Based on the statistics and materials obtained from the first and second physical indicators investigation, the basic information about land acquisition and demolition involved in this project is shown as follows: Affected administrative divisions: Xining Urban Transit Project affects one district (Chengbei), one county (Huangzhong), three towns (Dabaozi, Xibao, Mafang Subdistrict Office) and six villages. House demolition impacts: Total area of demolition: 150261.145km2, of which the area from the first investigation: 47806.145 km2 and the area from the second investigation: 102455km2. Totally, 121 households containing 527 persons are affected by house demolition and the private houses to be demolished totaled up to 144468.38km2. Affected enterprises and public institutions: 7, with area of demolition: 5792.73km2. Land acquisition impacts: Collectively-owned land to be requisitioned: 788.09mu, including cultivated land: 534.45mu and non-cultivated land: 253.64mu, with 481 households containing 1921 persons affected. State-owned land to be requisitioned: 8.46mu, all of which is state-owned construction land. According to the overall planning of Xining city, the location of main part of this project is within urban planning and development area, not within the scope of basic farmland protection area.

Fig. 2-1 Common residence in the affected area (1) Fig. 2-2 Common residence in the affected area (2)

Fig. 2-3 Common residence in the affected area (3) Fig. 2-4 Common residence in the affected area (4) 2.2 Results analysis of the first investigation of land acquisition

Based on the statistics of the first physical indicators investigation, this project totally covers an area of 791.55mu, including 783.09mu collectively-owned land and 8.46mu state-owned land to be requisitioned. The collectively-owned land to be requisitioned contains 529.45mu cultivated land and 253.64mun non-cultivated land. The state-owned land to be requisitioned is all of the nature of state-owned construction land. 2.2.1 Rural collective land to be requisitioned

This project is located at the outer suburb of Xining City, so the use of collective land is characterized by the followings: Firstly, most of the collective land is for agricultural use, mainly cultivated land, only small amount for fishpond. Secondly, the nonagricultural land mostly is homestead land. The village-owned collective construction land is mainly concentrated at Zuoshu Village. Thirdly, because it is located at suburbs, the use of land is highly intensive, and most of the land has been circulated to serve as greenhouse or nursery stock base. According to physical indicators investigation, the conditions of the collective land to be requisitioned in this project are shown as follows: The collective land to be requisitioned from Wuzhong Village is totally 168.86mu, including 126.86mu cultivated land, 74 households affected, of which 70mu has been transferred to serve as nursery stock base, and including 42mu non-cultivated land, mainly for roads and temporarily occupied construction land (resettlement house). There is 3.48mu land used as greenhouse in the cultivated land. The collective land to be requisitioned from Taobei Village is totally 355mu, including 217mu cultivated land, 159 households affected, of which about 131mu has been transferred from villagers to serve as nursery stock base and 28.71mu is used for

greenhouse, and including 138mu non-cultivated land, mainly for roads and homestead. The collective land to be requisitioned from Dabaozi Village is totally 68.76mu, including 61.76mu cultivated land, 52 households affected, of which 26.5mu is used for greenhouse, and including 7mu non-cultivated land, mainly for roads, wasteland and the land occupied by auxiliary facilities. The collective land to be requisitioned from Sanqi Village is totally 20.38mu, including 18.38mu cultivated land, 20 households affected, all of which is used for nursery stock base, and including 2mu non-cultivated land, mainly for water channel and wasteland. The collective land to be requisitioned from Wangjiazhai is totally 107.14mu, including 75.14mu cultivated land, 103 households affected, of which 47mu has been transferred to serve as nursery stock base and 1.19mu is used for greenhouse, and including 32mu non-cultivated land, mainly for homestead. The collective land to be requisitioned from Zuoshu Village is totally 67.95mu, including 35.31mu cultivated land which contains 0.5mu greenhouse and 12mu nursery garden, and including 32.64mu non-cultivated land, which mainly is collective construction land and also small amount of homestead and forest land.

Table 2.1 Ownership and conditions of the collective land to be requisitioned Land acquisition Affected area Land owner Land conditions (mu) Wuzhong Village 168.86 Wuzhong Village Cultivated land Taobei Village 355 Taobei Village Cultivated land and homestead Dabaozi Village 68.76 Dabaozi Village Cultivated land (mainly greenhouse) Sanqi Village 20.38 Sanqi Village Cultivated land Wangjiazhai 107.14 Wangjiazhai Cultivated land and homestead Collective construction land Zuoshu Village 67.95 Zuoshu Village and cultivated land Total 783.09

Table 2.2 Category and quantity of the collective land to be requisitioned (mu) Cultivated land Village Nursery Greenhous Non-cultivated land Total Total Crop field garden e Wuzhong Village 126.86 70 3.47 53.39 42 151.86 Taobei Village 217 146.52 28.71 41.78 138 355 Dabaozi Village 61.76 20 26.5 15.26 7 61.76 Sanqi Village 18.38 16.38 2 2 18.38 Wangjiazhai 75.14 47 1.19 26.95 32 96.14 Zuoshu Village 35.31 12 0.5 22.81 32.64 60.95 Total 529.45 311.9 50.37 162.19 253.64 788.09

2.2.2 State-owned land to be requisitioned

Three parcels of state-owned land to be requisitioned in this project are used by Xining No.1 Vocational School, a steel mill and a parking lot, totally 8.46mu, all of which is of the nature of state-owned construction land, mainly concentrated at the territory of Zuoshu Village. Table 2.3 Quantity of the state-owned land to be requisitioned (mu) Enterprises and public Area to be Total area Severity of impact institutions occupied (mu) Xining No.1 Vocational 1.16 120 Not large School Xichuan Metal Products Plant (steel mill), at 3.52 20.1 Going through it Huangzhong County Parking lot of Qinghai 3.78 400 Occupying a corner Wutong Group Total 8.46 2.3 Results analysis of the first investigation of house demolition

According to the physical indicators investigation, the building area to be demolished in Xining Urban Transit Project reached 47806.145m2, including 1) 42013.415m2 for residential buildings; 2) 5792.73m2 for the buildings used by enterprises and public institutions. See table 2.5 for details about the building area to be demolished in this project.

Table 2.5 Area of the buildings to be demolished in Xining Urban Transit Improvement Project (m2) Area used as Area used by enterprises and public Subproject Total residence institutions Western Wusi Road 29387.515 29387.515 Xicheng Avenue 12625.9 5792.73 18418.23 Total 42013.415 5792.73 47806.145 In terms of the structure of buildings, the area of frame structures: 588.415m2, the area of brick-concrete structure: 43074.03m2, brick-wood structure: 2008.14m2, the earth-wood structure: 254.96m2, the earth-concrete structure: 13.35m2 (only one at Zuoshu Village), utility room: 1605.72km2 and other structures: 261.5313.35m2. See table 2.6 for details on the classification of the buildings.

Table 2.6 Area of the classified buildings to be demolished in Xining Urban Transit Improvement Project (m2) Principal room (m2) Utility Earth- room Total Frame Brick-concrete Brick-wood Earth-wood Other 2 concrete (m ) Private 42013. 588.415 37306.6 1982.84 254.96 261.53 1605.72 residences 13.35 415 Enterprises and public 5792.7 5767.43 25.3 institutions 3 47806. Total 588.415 43074.03 2008.14 254.96 13.35 261.53 1605.72 145

2.3.1 Private residences to be demolished

According to the information and statistics obtained from the survey, the private residences to be demolished in Xining Urban Transit Improvement Project has a total area of 42013.415m2, with 121 households containing 523 persons affected, of which 29387.515km2 is concentrated at Western Wusi Road (Taobei Village), where 74 households are involved and 12625.9m2 is concentrated at Xicheng Avenue (mainly Wangjiazhai), where 47 households are involved. In terms of the structure of buildings, the area of brick-concrete structure: 37306.6km2, brick-wood structure: 37306.6m2, the earth-wood structure: 1982.84km2, the earth-concrete structure: 13.35m2, utility room: 1605.72m2 and other structures: 114.185m2. See table 2.7 for the area of the residences to be demolished and the analysis about structure classification.

Table 2.7 Area of the classified private residences to be demolished No. of Principal room (m2) Utility households/ Subproject room Total persons Brick- Earth- Frame Brick-wood Earth-wood Other (m2) affected concrete concrete Western

Wusi 74/327 588.415 26393.82 855.11 66.48 114.185 1369.408 29387.515

Road Xicheng 47/200 10912.79 1127.725 188.44 147.345 236.315 12625.9 Avenue 13.35 Total 121/527 588.415 37306.61 1982.84 254.96 13.35 261.53 1605.723 42013.415

2.3.2 Buildings of enterprises and public institutions to be demolished

According to the information and statistics obtained from the survey, the buildings of seven enterprises and public institutions need to be demolished in Xining Urban Transit Project, with a total area of 5792.73m2, mainly concentrated at Zuoshu Village. 20

Table 2.8 Buildings of enterprises and public institutions to be demolished (unit: m2) Enterprises and public institutions Brick-concrete Brick-wood Total Xichuan Metal Products Plant (steel 4562.25 mill), at Huangzhong County Duobarunbei Cement Plant 223.69 Jieling Materials Recycling 102.58 Company Xining No.1 Vocational School 152.25 Xining Xichuan Cement Pipe Plant 483.23 25.3 Wangjiazhai Villagers Committee 243.43 Total 5767.43 25.3 5792.73

2.3.3 Affected attachments and fixtures

Many attachments and fixtures are affected by land acquisition and demolition in this project, so only main attachments and fixtures are listed in the following:

Table 2.9 Affected Attachments and fixtures in Xining Urban Transit Improvement Project Decorative Cement Adobe Simple Sunning Type Cesspool Water cellar Brick wall Gate tower Brick gate seat ceramics on flooring wall shed ground interior wall Quantity 2867.447 52.15 6.7 1581.394 3500.432 407.05 7 54.472 219.95 188.72 Aluminum Aluminum Aluminum plastic Heatable alloy doors Steel Interior External facing Type alloy alloy doors & steel Tread Glazed tile ceramic tile & windows window facing brick brick window windows window bed (poor) Quantity 1580.0775 1786.8175 508.625 54.76 289.905 240.698 4672.685 5882.478 733.165 601.875 Ceramic tile Stainless Ceramic Wood Marble Wood Type kitchen Rails steel Curtain rod operation Tile paintings Fixed cabinet wainscot flooring window range handrail cabinets Quantity 23.96 472.89 811.31 332.24 274.85 119.85 69.49 94.62 215.455 146.55 Steel Water Fixed Brick Sandwich Brick Type Doghouse window Iron gate Pig house supply Well wardrobe column color plate ground enclosure device Quantity 172.985 16.761 34.3 39 564.245 329.523 1320.145 475.756 68 215.94 Electric Anti-theft Steel window Aluminum Marble Flower Operation Type Water pool Floor tile Heating unit cooking door partition partition worktop bed table range Quantity 18 208 52.65 99.1555 20.83 74.11 2190.1 105 58.215 67 Foundation Aluminum 24Single of precast Electricity Heatable Garden Granite Gypsum board Type Crypt alloy pvc ceiling plastered slab meter brick bed wall worktop ceiling enclosure wall enclosing wall Quantity 90 29 455.5 130.835 1514.86 7.42 1116.135 946.225 186.25 143.09 Rubble Steel Kitchen Wood Solid wood Paint-free Various Type slope Guardrail Toilet (m2) Shrine window range suspended door and door door and partitions protection ceiling (set) ceiling pocket door pocket Quantity 79.71 247.7824 66.88 6.135 230.71 23 15.66 118 116 276.535 Aluminum Aluminum Door and Antique Wooden Road Composite alloy doors & Operation Type Floor tile alloy sliding window Slope bricks shelf door bricks wood floor windows, cabinets door pockets without glass Quantity 14212.71 28.915 109 141.63 34.515 610.48 247.3 87.545 971.25 11.16 Note: there are 24 tombs to be moved in this project, all located at Wangjiazhai.

Table 2.10 Affected scattered plants in Xining Urban Transit Improvement Project Deciduous Deciduous Deciduous Flower Flower Flowering Flower trees Fruit tree Fruit tree Fruit tree Type arbors arbors arbors trees trees shrubs (small) (large) (medium) (small) (large) (medium) (small) (small) (medium) (cluster) Quantity 64 62 84 69 193 469 79 159 136 514 Elm Pepper tree Pepper tree Pepper tree Evergreens Evergreens Evergreens Bamboo Narrow-leaved Type Pine (medium) (large) (medium) (small) (large) (medium) (small) (cluster) oleaster Quantity 7 15 16 33 25 1 9 9 33 3 Dragon Chinese Clove Medlar Cypress (h Sabina Grapevine flowering Type spruce herbaceous seedling Peony (small) Poplar (small) ＝1m) chinensis (small) plum (small) peony (small) Quantity 1 2 31 3 3 1 3 1 8 7

2.3.4 Affected scattered plants

The affected plants mainly are deciduous arbors and flowering shrubs in courtyards. 2.4 Affected vulnerable population

2.4.1 Identification of the affected vulnerable population

Vulnerable population means the group of persons who are most vulnerable to harms and has no ability of adaption to the changes brought by the project among the affected population, mainly including the following types of persons: ● Elderly person of no family, which means the elderly above 65 who is single and has no legal obligor of support; ● Single parent family (female householder), which means the family in which the householder is single and has minor children; ● Orphan, which means the children under 16 who have lost their parents; ●Poor family, which means the urban families holding Certificate for Residents Enjoying Subsistence Allowances issued by Xining City or the identified poor rural families; ●The disabled, which means the persons who have completely or partially lost the ability of doing something in normal methods due to the loss or abnormality of some tissue or function mentally, physiologically or from the view of human structure. ● Families having other difficulties The identification of vulnerable population will be based on field survey and the requirements of pertinent policies and regulations. In project implementation process, the resettlement office will accomplish the identification through household survey, neighborhood interview and the verification by community committee. 22

2.4.2 Affected households identified as vulnerable population

The survey shows that among the affected population, there are 17 households identified as vulnerable families, containing 67 persons. See table 2-11 for the vulnerable families affected by this project.

Table 2.11 The affected vulnerable families No. of No. Name Village Description members 1 HU Chengming Wangjiazhai 1 Disabled 2 ZHANG Hui Wangjiazhai 2 Disabled 3 MA Yongde Wangjiazhai 5 Disabled Household enjoying the 4 SUN Chengzhu Wangjiazhai 5 minimum living guarantee Elderly person of no 5 SI Qiquan Wangjiazhai 1 family 6 PENG Bingmei Wangjiazhai 4 Female householder family Female householder 7 LUO Jinlian Wangjiazhai 4 family Household enjoying the 8 DING Xiaoping Wangjiazhai 4 minimum living guarantee 9 SI Shengquan Wangjiazhai 3 Disabled 10 MA Fenglan Wangjiazhai 6 Disabled SHANG 11 Wangjiazhai 7 Disabled Yuzhong 12 CHEN Shengxing Taobei 1 Elderly person of no family 13 YANG Delian Taobei 7 Female householder family 14 REN Guilan Taobei 8 Disabled 15 GOU Xuejian Wuzhong 5 Disabled 16 GOU Shengming Wuzhong 4 His wife is disabled 17 PENG Wuchun Zuoshu 5 His daughter is disabled Total 17 72 2.5 Affected infrastructure

There are fewer infrastructures affected by this project, only 6971.66m cement & sandstone road, 569.3m U-shape water channel (m3) and some telegraph poles. 2.6 Results of the second physical indicators investigation During the process of the second investigation, site survey and map measurement are conducted only for the increment of house demolition and the results show that the brick-concrete structures have an increase of 102455m2, all of which are private residences. The results of the increment survey are general, not giving the details of individual villages.

3. Socio-economic Overview of Project Affected Area

3.1 Socio-economic conditions of the targeted city/district

Xining Urban Transit Improvement Project affects one district (Chengbei), one county (Huangzhong), three subdistricts/towns (townships) and six villages/communities. The socio-economic development conditions of the targeted city and counties are described as follows: The city of Xining, called “Ning” for short, is thus named for its connotation of “peace of western border area”. It is located at eastern Qinghai province and the upper reaches of Huangshui River - one tributary of the Yellow River, surrounded by mountains with several rivers converging here. It is just a gate to access to Qinghai-Tibet Plateau, so it was called “throat to Western Sea” for its important geographic position. With profound history and culture, abundant natural resources and diversified folk customs, it is a shinning pearl at Qinghai-Tibet Plateau. Xining, as the capital of Qinghai province, is the political, economic, scientific, cultural and traffic center of the whole province and also the main industrial base. It administrates Chengdong District, Chengzhong District (containing Chengnan New District), Chengxi District, Chengbei District, Haihu New District and National Economic Development Zone as well as three counties, namely Datong, Huangzhong and Huangyuan, covering a total area of 7649km2, 380km2 of which is directly under the municipal’s administration. Up to November 1, 2011, it had a population of 2.2087 million, taking up 39.25% of the province. The citizens come from 34 peoples including Han, Hui, Tibetan, Tu, Mongol, Salar etc., 25.55% of which are minority. In this city, Buddhism, Islam, Taoism, Christian and Catholicism coexist and especially Tibetan Buddhism and Islam have great influence. In 2011, the city’s gross regional production reached CNY 77.07 billion. The primary industry had an increase of CNY 2.741 billion, taking up 1.32% in the gross value of production, the secondary industry had an increase of CNY 41.128 billion, taking up 62.68%, and the service industry had an increase of CNY 33.201 billion, taking up 36.00%. From the perspective of demands, the consumption and investment still largely stimulated the economic growth. In the same year, the fixed asset investment in 2011 reached CNY 52.801 billion, an increase of 31.01% and total retail sales of social consumer goods reached CNY 27.129 billion, an increase of 17.05%. In terms of the operation quality, the general budget revenue of this city was CNY

4.525 billion, a growth of 31.1%, 16.1 points higher than the economic growth rate. The total retail sales of social consumer goods was CNY 27.1429 billion, an increase of 17.05% over the previous year; the urban per capita disposable income was CNY 15,841.64, an increase of 12.47% over the previous year; the rural per capital net income was CNY 6,633.96, an increase of 21.36% over the previous year; the urban registered unemployment rate was 4.13%. Chengbei District of Xining, Qinghai Province is located at north western area of this city. Xining municipality revoked the administrative setting of the suburbs in 1986 and established Chengbei District by redefining the territory of Chengxi District. The towns originally administered by the suburbs were included into Chengdong, Chengxi and Chengbei districts. Presently, Chengbei District administers two towns (Dabaozi and Ershilipu), three subdistrict offices (Xiaoqiao, Chaoyang and Mafang), 38 administrative villages and 23 community committees, and therefore is the largest new type municipal district of this city. It covers an area of 138km2 and has a population of 299,000 (based on 2010 the sixth population census), of which the registered permanent residents are 213,400, covering 30 peoples including Han, Hui, Tibetan, Mongol, Tu etc.

Table 3.1 Socio-economic conditions of Chengbei District in project affected area (2010) Chengbei District of Indicators Xining Total population (ten thousand) 29.90 Population Rural population (ten thousand) 6.15 Rural labor (ten thousand) 3.80 Total area (ha.) 2133 Cultivated land Irrigable land (ha.) 1956 Grain output (ton) 2136 Gross domestic product (ten thousand Yuan) 1302749 Output value (ten thousand Yuan) 16197 Primary industry Percentage (%) 1.24 Output value (ten thousand Yuan) 911197 Output value Secondary industry Percentage (%) 69.94 Output value (ten thousand Yuan) 375355 Service industry Percentage (%) 28.81 Per capita GDP (Yuan) 43570.2 Urban per capita disposable income (Yuan) 14483 Revenue Rural per capita net income (Yuan) 9537 Source: 2011 Xining Statistic Yearbook (Xining Municipal Statistics Bureau)

Qinghai-Tibet Railway and Xining-Datong Railway go through this district by traversing Xichuan and Beichuan rivulets. The urban area is connected with the suburban counties by Xining-Datong Highway, Xining-Huangyuan Highway, Lanzhou-Xining Expressway and Haihu Road overpass. With over 20 bus lines and 25 the mobile communication, data exchange and Internet that covers all the corners, this district has convenient transportation and communication. In this district, the very old Shenna relics, the Ningshou Tower in Beichan Temple, the “earthen building” built against the mountain by use of the mystical Danxia landform, the “Statues of Warriors’ Attendants in Open Air” standing on the cliff, the miraculous “Nine Grottos and Eighteen Caves” and the Gothic Architecture Park on Dadunling Mountain, all attract the tourists from home and abroad. In addition, for many colleges and universities and agricultural and pastoral research institutions gather here, especially the provincial key comprehensive university – Qinghai University, this district has reasonable layout with rich human resources and matured medical facilities. Over 20 large-scale closed-type specialized markets in ceramics, furniture, building materials, Chinese-Tibetan medicine and others with complete supporting facilities and the characteristic specialized markets such as the Furniture, Stones and Decorative Materials Market near Beishan Temple, Huangshui River Market, Beishan International Commodities Market, Chaoyang Building Materials General Market make this district the largest collecting and distributing place of goods and materials in this province, with steels, timbers, ceramics, fertilizer and other production materials outflowing to Tibetan area and other provinces of the whole country. Chengbei District is also the largest industrial cluster in Xining. There are 245 industrial enterprises. The special steels, engineering machinery, numerically controlled machine tools, silicon irons, handmade Tibetan carpets and cashmere products are famous both at home and abroad. An industrial system that covers chemical industry, building materials, light textile, pharmacy, power sector and others with metallurgy and mechanics as pillar has been formed. The products manufactured here have been sold to all areas of China and also more than ten foreign countries and areas. Chengbei District is also an important agricultural area. It is endowed with fertile land and advantageous irrigation conditions, because Huangshui River and Beichuan River traverse this district. The sown area of farming crops is 39095mu, 80% of which is for cash crops. In recent years, Chengbei District has made great efforts to adjust its economic structure of agriculture, develop facility agriculture and raise the proportion of suburban stock farming in agricultural economy so as to increase the technological content in agriculture and promote the production and development of famous, distinctive and top-quality products. The plantation of cash crops mainly including vegetables, flowers, nursery stock and Chinese-Tibetan medicine and the 26 promotion of agricultural industrialization have made this district a “vegetable” production base, flowers planting base and high-efficiency agricultural demonstration area. Huangzhong County is thus named from its connotation of “Huangshui basin” in general recorded in historical literatures. It was directly administered by the province after the establishment of New China, then transferred to be under the direct administration of Xining municipality during January 1960 to July 1961, recovered to be directly administered by the provincial government in August 1961, later it was merged into Haidong area in 1979, and was returned to the territory of Xining in January 2000. Huangzhong County is located at eastern Qinghai Province and is the transition between the northwestern loess plateau and Qinghai-Tibet Plateau. It is a cool and semi-arid place at Qinghai-Tibet Plateau, surrounded by mountains in three directions, with Niangniang Mountain (part of Qilian mountain range) at its northwest and Laji mountains at its southwest. In the territory of this county, the topographic and geomorphic conditions are very complicated for many valleys, gullies, mountains and rivers. The terrain is high in its south, west and north areas and is low in southeast area. Huangshui River flows from west to east across the central area and waters from fourteen rivers including Danan River, Xina River and Yungu River converge into Huangshui River from south, west and north directions in the shape of a fan. Town of Lushaer where government of the county is located is 25km away from Xining city. Huangzhong County encloses Xining city at its west, south and north directions. It covers an area of 2700km2, elevation: 2225-4488m, annual average temperature: 5.1°C, mean annual precipitation: 509.8ml and annual evaporation capacity: 900-1000ml.

Table 3.2 Socio-economic conditions of Huangzhong County in project affected area (2010) Indicators Huangzhong County Total population (ten thousand) 43.78 Population Rural population (ten thousand) 42.37 Rural labor (ten thousand) 25.45 Total area (ha.) 56479 Cultivated land Irrigable land (ha.) 13474/ Grain output (ton) 134720 Gross domestic product (ten thousand Yuan) Output value Output value (ten thousand Yuan) 102844 Primary industry Percentage (%) 11.42 Output value Output value (ten thousand Yuan) 678733 Secondary industry Percentage (%) 75.40 Service industry Output value (ten thousand Yuan) 118658 27

Percentage (%) 13.18 Per capita GDP (Yuan) Urban per capita disposable income (Yuan) 14483 Revenue Rural per capita net income (Yuan) 4781 Source: 2011 Xining Statistic Yearbook (Xining Municipal Statistics Bureau) Presently, Huangzhong County administers 10 towns including town of Xibao, 5 townships and 393 administrative villages, with a population of 437,800 (based on 2010 the sixth population census), including 116,700 minority. 3.2 Socio-economic conditions of the targeted towns (townships)

This project affects three towns and subdistricts, namely Town of Dabaozi, Town of Xibao and Mafang subdistrict. Their socio-economic conditions are described as follows: The town of Dabaozi, is under the jurisdiction of Chengbei District and locates at the western suburbs of Xining, 13km away from the downtown, connecting with Xining Special Steel Co., Ltd. on the east, adjoining the town of Duoba of Huangzhong County on the west, facing the town of Pengjiazhai of Chengxi District across Xichuan Rover on the south, and adjacent to the town of Lijiashan and the township of Haizigou of Huangzhong County on the north, covering an area of 45km2. It administers 13 administrative villages, with permanent residents: approximately 30,000 and cultivated land: 17766mu. It was an area under the jurisdiction of Huangzhong County in 1949, transferred to be administered by Xining municipality in 1956, retransferred to the jurisdiction of Dongfeng Commune in 1958, then it was independent in 1961 with the establishment of Dabaozi Commune, changed to a township in 1984 and was put under the administration of Chengbei District in 1986. The town of Dabaozi is on the Tang-Tibet Ancient Road and at the throat of the path between Qinghai and Tibet and therefore is an important town through which to access to Tibet. Xining-Huangyuan Expressway, 109 national road and Dandong-Lhasa Expressway (under construction) go through its territory and the bus lines and long distance passenger transportation lines extend in all directions conveniently. On aspect of agriculture, there are already 14 agricultural parks mainly including flowers, pollution-free vegetables, fruits and other distinctive agricultural products and also more than 3000 energy-saving greenhouses. It encourages the development

28 of new agriculture integrating fruits picking, land adoption and leisure tourism. The planting area of cash crops accounted for 87% of the total sown area in 2009. And on aspect of industry, many industrial parks have been established mainly including wood processing, metallurgy, foods processing, building materials and nursery garden in the area covering Jinjiawan, Balang, Songjiazhai, Dabaozi Village, Zhunan and Beicun Village. Mafang subdistrit locates at the central southern area of Chengbei District, Xining, Qinghai Province, with the territory bordering on Huangshui River on the south, adjoining the township of Haizigou of Huangzhong County on the north, connecting with Xiaoqiao subdistrict on the east and adjacent to the town of Dabaozi on the west, covering an area of 12km2. It has a permanent resident population of 58,000, most of which are Han people, also including Hui, Manchu, Tu and other minorities. It administers 9 community residents committees, namely Yanzhuang, Qinggong, Mafangdong, Xinle, Xingfu, Xixingyuan, Qiyun, Guangming and Xincun, and 4 village residents committees, namely Yanzhuang, Mafang, Xixingyuan and Sanqi Village. Town of Xibao: In August 2006, the County of Huangzhong revoked its administrative division as a township and changed it to be a town. It locates at northeastern Huangzhong County, 9km away from the county town, covering an area of 103km2. It has a population of 23988, most of which are Han people, also including some minorities such as Tibetan, Hui and Tu etc. It administers 19 village residents committees. See Table 3-2 for the socio-economic conditions of these towns, townships and subdistricts.

Table 3.2 Socio-economic conditions of the targeted towns/townships in project affected area (2011) Indicators Dabaozi Mafang Xibao Total no. of households 4610 18551 6002 Total population 30000 58000 23988 Population Agricultural population 21000 8583 Total no. of labor resources (person) 15428 11422 Total area (mu) 17766 40825 Cultivated land Irrigable land (mu) 16331 Total agricultural output value (ten thousand Agriculture 7651 Yuan) Township No. of enterprises 68 21 enterprises Growth (ten thousand Yuan) 5800 1973.4 Revenue Rural per capita net income (Yuan) 9982.73 5859

3.3 Socio-economic conditions of the affected villages

To learn about the detailed socio-economic conditions of the affected villages, the organization responsible for the preparation of Resettlement Action Plan collected the socio-economic information of six affected villages and had a general analysis on the socio-economic development. See Table 3-3 for the socio-economic conditions of these villages. Among the six affected villages, the rural per capita net income is 7000-12000. Sanqi Village has the highest value, i.e. 11466 Yuan and Zuoshu Village has the lowest value, i.e. 7108 Yuan. Analysis shows that the percentages of agricultural income in total economic income of these sample villages are as follows: Taobei Village: 27.36%, Wangjiazhai: 9.23%, Dabaozi Village: 11.4%, Wuzhong Village: 34.9%, Sanqi Village: 5.83% and Zuoshu Village: 18.28%. It’s found from the in-depth interviews with the leaders and villagers that similar with most areas in China, the dependence of villagers on the incomes on land has a downtrend and nonagricultural incomes have become a more and more important source of incomes with the development of local economy. Because it’s near the urban area, young people in the villages go out to work or do business in most of the year and the not much cultivated land is mainly planted by the elderly and women family members. Or, cultivated by others hired. Some villagers working or doing business outside may go back home to help the cultivation and harvest in busy seasons.

Table 3.3 Socio-economic conditions of sample villages

Incomes from Including Rural Percentages working outside Total per of Population Per capita (1) Incomes from farming, forestry, animal economic capita agricultural Cultivated cultivated husbandry, side line production and fishery No. of Income Town Village income net income in land (mu) land (ten thousand Yuan) (2) (3) (4) (5) (6) labors (ten (ten income total (mu) Forestry Family Industry Construction Transportation Commerce Service exported thousand No. of No. of thousand) Grain Stock economic Labors Subtotal and fruit sideline (person) Yuan) households persons crop farming (Yuan) income（%） growing production Taobei 366 1815 1390 1652 0．91 1652 452 300 132 20 200 500 112 36 72 200 280 10228 27.36 Village Wangjiazhai 183 795 642 712 0．9 740 68.35 68.35 480 672 9270 9.23 Dabaozi Wuzhong 603 2456 1602 2380 0.96 2304 804 154 750 1000 1400 7347 34.90 Village Dabaozi 685 2721 2409 2305 0.85 1938 221 221 32 5 1200 1680 10822 11.40 Village Mafang Sanqi 1321 4153 2400 1369 0.33 7083 413 72 2 339 760 2670 350 102 81 1880 2707 11466 5.83 Zuoshu Xibao 414 1564 1200 1425 0.91 4295 785 135 600 50 2600 150 60 500 700 7108 18.28 village Total 6 3572 13504 9643 9843 0．73 18012 2743.35 950.35 2 1071 820 3560 3170 644 203 153 5260 7439 9373 17.83 Note: this table is based on the survey of village residents committees and partial statistical data.

It can be seen from the above analysis that because all these villages affected by this project locate at the surrounding areas of the town or township, they have close relationship with the economy of towns, the nonagricultural economies are active, the proportion of agricultural economy in the economic aggregate of each village is tending smaller and the living standard of most of the villagers usually is higher than the average standard of the local area. Even if Zuoshu Village has the lowest per capital income among these affected villages, however its total income is the highest in the town of Xibao. 3.4 General conditions of the affected families

To analyze the socio-economic characteristics of the displaced households, the organization that is responsible for the preparation of Resettlement Action Plan conducted surveys among the displaced households in such methods as follows. The data about total population and total number of households were obtained from the first household survey, the household register and the documents concerning grain direct subsidies and new rural cooperative medical and health care insurance. The information we can get from household register includes gender, age and education level (but only limited to Taobei Village, Wangjiazhai, Sanqi Village and Wuzhong Village) and from the documents concerning direct grain subsidies, we can get the data about the land contracted by the households. The data about their family incomes were obtained from the on-site questionnaire survey in following method: general survey was conducted among the relocated households and the households with housing demolished and land requisitioned concurrently with the first household survey of physical indicators, from which 121 questionnaires were obtained; and a questionnaire survey was also conducted among the members of the households with land requisitioned on the field at the time of identifying their contracted land occupied by the project, from which 71 questionnaires were obtained.

Table 3.4 Sample distribution of questionnaire survy Households with housing Total no. of Households with land Relocated households demolished and land households Total no. of requisitioned requisitioned included in affected No. of Total No. of Total No. of Total questionnaire households samples Number samples Number samples Number Survey Taobei 33 33 28 29 35 123 107 231 Village Wangjiazhai 42 42 5 5 20 63 58 130 Wuzhong 15 74 15 74 Village Dabaozi 2 48 2 52 Village Sanqi Village 1 20 1 20 Zuoshu 5 5 1 1 1 44 7 44 Village Total 80 80 34 35 71 430 190 551

3.4.1 The households affected by land acquisition

1) Basic family conditions There are totally 384 households affected only by land acquisition, containing a population of 1759, averagely 4.58 persons per household. Among the 1225 persons included in the survey, there are 616 females, accounting for 49.88% and 896 labors, accounting for 73.14%. Most of the affected persons are rural residents. Usually, the men go out for work and the women do farming work at home and sometimes also go out for work in the slack season. A. Analysis of age composition and gender Among the 1225 persons included in the survey, the age distribution is as follows: there are 232 persons under 18, accounting for 18.49%, including 134 males, 20.97% in the total number of male samples and 98 females, 15.97% in the total number of female samples; there are 896 persons between 18~60, accounting for 71.39%, including 446 males, 69.8% in the total number of male samples and 450 females, 73.05% in the total number of female samples; there are 127 persons above 60, accounting for 10.12%, including 59 males, 9.22% in the total number of male samples and 68 females, 11.04% in the total number of female samples. See table 3-5 B. Education background Among the 904 persons included in the survey, the education background is as follows: there are 491 persons who have only finished or even haven’t finished primary school education, accounting for 54.31%, including 230 males, 51.92% in the total

number of male samples and 261 females, 56.62% in the total number of female samples; there are 334 persons who have only finished high school education, accounting for 36.95%, including 167 males, 37.70% in the total number of male samples and 167 females, 36.23% in the total number of female samples; there are 79 persons who have senior high school diploma or higher level degrees, accounting for 8.74%, including 46 males, 10.38% in the total number of male samples and 33 females, 7.16% in the total number of female samples. The education level is low in general. See table 3-5.

Table 3-5 Statistical characteristics of the total population affected by land acquisition Male Female Total Items Number % Number % Number % ≤18 134 20.97% 98 15.91% 232 18.49% 18-60 446 69.80% 450 73.05% 896 71.39% Age ≥60 59 9.23% 68 11.04% 127 10.12% Subtotal 639 100.00% 616 100.00% 1255 100.00% Primary school and below 230 51.92% 261 56.62% 491 54.31% Education High school 167 37.70% 167 36.23% 334 36.95% background Senior high school and above 46 10.38% 33 7.16% 79 8.74% Subtotal 443 100.00% 461 100.00% 904 100.00% Labors 446 49.78% 450 50.22% 896 100.00% Note: there are totally 384 households affected by land acquisition, containing 1759 persons, of which the age of 504 persons is unknown and the education background of 855 persons is unknown.

2) Conditions of land resources As for the 326 households, totally 1525 persons included in the survey, the total area of the land contracted by them is 1585.92mu, averagely 4.86mu per household. The per capita cultivated land is approximately 1.02mu, a litter higher than the results calculated from the statistical information and surveys shown in table 3-3. But this difference is reasonable in consideration of the understatement of the cultivated land in the statistical information.

Table 3-6 Statistics of land use conditions of the population affected by land acquisition

Land per Per capita land Items Quantity (mu) household (mu/person) (mu/household)

Land contracted (mu) 1585.92 4.86 1.04 Note: there are 326 households whose contracted lands are affected, covering totally 1525 persons.

3) Incomes and expenditures of the displaced persons The statistical analysis shows that among the 72 households included in the survey, the annual per capita income is 8340.33 Yuan, of which 6512.32 Yuan comes from non-farming work outside, accounting for 75.85%, 1158.08 Yuan comes from agricultural earnings, accounting for 13.49%, and 915.64 Yuan comes from other sources, accounting for 10.66%. Except that the per capita income is a little lower, all other data are basically in conformity with the statistical results. In terms of expenditures, the annual per capita expenditure is 8731.77 Yuan, of which agricultural expenditure is 245.71 Yuan, accounting for 2.81%, living expenditure is 3930.50 Yuan, accounting for 45.01%, and other expenditures is 4555.39 Yuan, accounting for 52.17%. See table 3-7 for the structure of the family incomes and expenditures.

Table 3-7 Incomes and expenditures of the households affected by land acquisition Per capita Items Proportions (%) (Yuan/person) Incomes from nonfarm work outside 6512.32 75.85% Annual family Agricultural incomes 1158.08 13.49% income Others 915.64 10.66% Total 8586.04 100.00% Agricultural expenditure 245.71 2.81% Annual family Living expenditure 3930.50 45.01% expenditures Others 4555.39 52.17% Total 8731.77 100.00% Per capita net income 8340.33 / Note: Net income= total income – productive expenditure

The above survey and analysis show that the incomes earned by working outside take up 75.85% of the total income of the affected households and it is one of the main sources of incomes, and that the lower proportion of other incomes indicates that the dependence of their incomes on land has a rather large decrease and it also verifies the aforementioned statistical results.

3.4.2. Relocated households 1) Basic family conditions There are 121 households, totally 536 persons affected by house demolition. However, the gender and age of 12 persons are unknown in survey data. So the statistical survey covers 524 persons, including 246 males and 278 females, taking up

46.95% and 53.05% respectively. A. Age structure Among the121 households, totally 524 persons included in the survey, the age distribution is as follows: there are 114 persons under 18, accounting for 21.76%, including 52 males, 21.714% in the total number of male samples and 62 females, 22.30% in the total number of female samples; there are 335 persons between 18~60, accounting for 63.93%, including 158 males, 64.23% in the total number of male samples and 177 females, 63.67% in the total number of female samples; there are 75 persons above 60, accounting for 14.31%, including 36 males, 14.63% in the total number of male samples and 39 females, 14.03% in the total number of female samples. See table 3-7. B. Education background The education background is as follows: there are 231 persons who have only finished or even haven’t finished primary school education, accounting for 51.91%, including 107 males, 50.00% in the total number of male samples and 124 females, 53.68% in the total number of female samples; there are 171 persons who have only finished high school education, accounting for 38.43%, including 84 males, 39.25% in the total number of male samples and 87 females, 37.66% in the total number of female samples; there are 43 persons who have senior high school diploma or higher level degrees, accounting for 9.66%, including 23 males, 10.75% in the total number of male samples and 20 females, 8.66% in the total number of female samples. See table 3-7 for details about the education background of family members of the resettlement households in all towns and townships in the survey.

Table 3-7 Statistics of the persons and labors affected by house demolition Male Female Total Items Number % Number % Number % ≤18 52 21.14% 62 22.30% 114 21.76% 18-60 158 64.23% 177 63.67% 335 63.93% Age ≥60 36 14.63% 39 14.03% 75 14.31% Subtotal 246 100.00% 278 100.00% 524 100.00% Primary school and below 107 50.00% 124 53.68% 231 51.91% Education High school 84 39.25% 87 37.66% 171 38.43% background Senior high school and above 23 10.75% 20 8.66% 43 9.66% Subtotal 214 100.00% 231 100.00% 445 100.00% Labors 158 47.16% 177 52.84% 335 100.00% Note: totally 121 households, covering 536 persons, of which the age of 12 persons and the educational background

of 91 persons are unknown.

2) Residential conditions of the relocated households Among the 121 households included in the survey, their houses mainly are of brick-concrete and brick-wood structure. The socio-economic survey shows that the total area of the houses to be demolished is 42013.38m2, 78.77% of which is brick-concrete structure and 11.24% is earth-wood structure, and the average residential area per household is 347.21m2, per capita area nearly 80m2. The drinking water here all comes from tap water. 3) Residential environment of the relocated households Among the 121 households included in the survey, it’s averagely 3.06km for each household to the nearest town, 2.73~4.12km averagely to the nearest primary school and high school, 1.71km averagely to the nearest medical service institution, 1.01km averagely to their contracted lands and 8.27km averagely to the nearest working place. See details in table 3-8.

Table 3-8 Residential environment of the households affected by house demolition Residential environment Average distance To medical institution (km) 1.71 To primary school (km) 2.73 To high school (km) 4.12 To town (km) 3.06 To working place (km) 8.27 To contracted lands (km) 1.01 According to the results analysis of the socio-economic survey, most of the houses in which the relocated households now live were built in 1990s and have poor structures and old decorations due to the long history. On the other hand, the infrastructure in the residing area of the relocated households is incomplete, for example, coal burning is required for heating in winter and there are no water drainage facilities. Although the drinking water comes from tap water, the water supply is limited to only four hours a day. So the construction of this project and the resettlement activity bring a chance for the households to improve their living conditions and environment.

3.4.3 Households with houses demolished and land requisitioned

To verify the results of the aforesaid survey, the households with housing demolished and land requisitioned are separated from the relocated households. See table 3-9, 3-10 and 3-11 for the results of the statistics. It can be seen from the results

that the characteristics of the households with housing demolished and land requisitioned are in conformity with those of the households only affected by land acquisition, such as low education level (especially the women), high percentage of labors, high incomes earned by working outside, high “other expenditures” and high per capita net income. The difference is mainly reflected on per capita cultivated land, which is 1.56mu for the households with housing demolished and land requisitioned, a litter higher than that of the households only affected by land acquisition.

Table 3-9 Statistics of the persons and labors affected by land acquisition and demolition Male Female Total Items Number % Number Number % ≤18 15 19.74% 16 18.60% 31 19.14% 18-60 51 67.11% 60 69.77% 111 68.52% Age ≥60 10 13.16% 10 11.63% 20 12.35% Subtotal 76 100.00% 86 100.00% 162 100.00% Primary school and below 33 47.14% 42 59.15% 75 53.19% Education High school 27 38.57% 24 33.80% 51 36.17% background Senior high school and above 10 14.29% 5 7.04% 15 10.64% Subtotal 70 100.00% 71 100.00% 141 100.00% Labors 35.92% 60 64.08% 111 100.00% Note: totally 34 households, covering 162 persons, of which the education background of 21 persons is unknown.

Table 3-10 Statistics concerning the land use conditions of the persons affected by land acquisition and demolition Per household Per capita Item Quantity (mu) (mu/household) (mu/person) Contracted land (mu) 250.40 7.59 1.56 Note: there are 33 households, totally 162 persons whose contracted lands are affected.

Table 3-11 Incomes and expenditures of the households affected by land acquisition and demolition Per capita Items Proportions (%) (Yuan/person) Incomes from nonfarm 5520.21 61.72% work outside Annual family Agricultural incomes 2096.70 23.44% income Others 1326.34 14.83% Total 8943.26 100.00% Agricultural expenditure 541.40 8.07% Annual family Living expenditure 3007.90 44.83% expenditures Others 3160.97 47.11% Total 6710.61 100.00% Per capita net income / Note: Net income= total income – productive expenditure, 32 households are included in the statistics.

3.5 Effect of project construction on women development

3.5.1．Analysis of women in the project area Education: The survey concerning family status of the affected households shows that in the affected area, women’s education level is lower than men’s: the proportion of men with high school education is higher than women 4.19%. The proportion of women with high school education is lower than man 2.61%. The proportion of women with primary school and below (56.48%) is much higher than man (49.69%). The details of statistics on the gender education level can be seen in table 3-12.

Table 3－12 statistics on the gender education level in the investigation samples

Educational level Female (%) Male (%)

Primary school and below 56.48 49.69

High school 35.9 38.51

Senior high school and above 7.62 11.81

Income and family status: The investigation shows that the proportion of women income in the family is much lower than men (see table 3-13), mostly within 30-40%.

Table 3-13 Percentage of women labor’s income in family income No. of Percentage of Percentage of Percentage of households women labor’s women labor’s women labor’s as data income in family income in family income in family sources income (maximum) income (minimum) income (average) Wuzhong Village 8 50% 10% 30% Wangjiazhai 25 50% 10% 37% Taobei Village 29 60% 1% 31% Zuoshu Village 5 40% 20% 32% Dabaozi Village 2 40% 40% 40% Total 69 60% 1% 34% According to the socio-economic survey in the affected area, going out for work is a common mode of employment and means of livelihood for rural labors and the land contracted by peasant families is mainly farmed in a simple sustaining production mode by the elders, women and minors. For the women, especially the middle and aged women between 40 and 50 and above, due to the barrier of low personal quality and the drag of household duties (e.g. taking care of the elder and children), most of them have

to stay at home and undertake the heavy agricultural productive work and household duties, so they are in a weak position socially and economically.

Ma Yuhuan, female, 38, Han ethnicity, lives at Wangjiazhai. There are four members in my family except me: my husband, son, daughter and younger brother-in-law. My son is in grade 2 in primary school and my daughter is in her first year in high school. We have 5mu contracted land, on which wheat, rape or broad bean is grown, with not very good harvest (500kg wheat per year, output of rape and broad bean is unknown). The earning from land is only two to three thousand Yuan every year by selling wheat or broad bean. I stay at home to do agricultural work and take care of children, my husband work for Xilin Iron & Steel Group with monthly salary of 2500 Yuan or so. The family income mainly depends on my husband’s work.

Lu Yuxiu, female, 60, Han ethnicity, lives at Wangjiazhai. There are four members in my family. My grandson is in primary school. We have 2mu contracted land (one greenhouse and other land used to grow wheat and rape). My son and daughter-in-law both work at Xining. My son is mainly engaged in transportation and my daughter-in-law does some odd jobs. I mainly do agricultural work (crop farming). The gross income of my family is about fifty thousand Yuan per year (including nonagricultural income), mainly depending on the earnings of my son and daughter-in-law by working outside. My son decides for the family in big things.

Social network:

A survey concerning social network shows that the locals contact more with their relatives, friends and neighbors and the aid of those persons is most preferred when they encounter difficulties in production and life. So women care more about resettlement method and most of them accept collective resettlement. Child is also one of their major considerations. A considerable portion of women expressed that they wanted to deposit the compensation fund to use it for child’s education in future. There is an interesting comparison that the men require the compensation fund to be distributed openly and

transparently and they give priority to building house and doing business in respective of the use of compensation fund.

Cao Yufang, female, Han ethnicity, lives at Taobei Village.

There are five members in my family, including my parents and my 3 year old child who attends kindergarten. We have 6.6mu land, farmed by my husband and me.

We haven’t considered the issue concerning the use of compensation fund, but we hope the fund won’t be issued in the lumpsum method. It’s better for the government to deposit part of the fund for pension program or the child’s future education.

3.5.2 analysis of resettlement impacts on women

Positive impacts (1) improving the living conditions According to the results analysis of the socio-economic survey, most of the houses in which the relocated households now live were old decorations and poor in structures and infrastructure. For example, coal burning is required for heating in winter and there are no water drainage facilities. Although the drinking water comes from tap water, the water supply is limited to only four hours a day. So the construction of this project and the resettlement activity bring a chance for the households to improve their living conditions and environment.

(2) increasing the job opportunities and raising economic income

Most of the women are full of expectation for the project construction, because they think that the opportunities far exceed the risks brought by this project. On one hand, road construction makes traffic smoother and reduces travelling costs so that it’s more convenient for their husbands to go to work and their children to go to school. On the other hand, the construction of resettlement houses and host communities not only improves their living standard and environment but also brings new job opportunities, particularly, road construction promotes local development and generates more development chances.

(3) Reducing housework

Most of housework is done by women in the project area. The current inconvenience in water supply and sewer in community makes household clean and hygiene, water intaking and storage, and home heating in winter arduous. As resettlement is finished, water supply and home heating will obtain good solutions. In addition, the sewage is emitted into the pipeline network, which reduces greatly women housework.

Negative impacts

(1) inconvenience in daily life in the transitional period

In transitional period, some inconvenience caused by rental or starter home might create certain troubles to daily life of affected residents, particularly, to women who are responsible for cooking, household management.

In construction period, earth excavation and stack of building materials might cause certain traffic jams, which bring some inconvenience to the local residents.

(2) decrease in agricultural income The elders and women are the first influenced by land acquisition in this project. Land acquisition decreases their income and may further relegate their economic status in family. So the social security after land acquisition is of the most concern for them. Therefore, providing the peasants including women with reliable basic pension insurance is an essential security measure and is of significance to raise women’s social and economic status.

3.6 Ethnic minorities in the affected area

Xining, as capital city of Qinghai Province, shows the characteristic of multiple peoples’ coexistence in its population, including 38 ethnic minorities. But compared with other places in the same province, Xining is a city where Han people is most concentrated. According to the sixth population census, Xining has a permanent population of 2,208,700, including 1,635,200 Han people, accounting for 74.03% and 573,500 ethnic minorities, accounting for 25.97%, mainly Tibetan, Hui, Tu, Salar and Mongol. The ethnic minorities live together over vast areas while some live in individual concentrated communities in small areas, mainly at Datong County, Huangzhong County and Chengdong District. But the six villages directly affected by

this project all are composed of Han people, so there is no such issue concerning effects on ethnic minorities in this project.

4 Laws, Regulations and Policies

The resettlement work of the World Bank Funded Qinghai Xining Urban Transit Project will strictly follow the relevant laws, regulations and policies of the People’s Republic of China, Qinghai Province, Xining City and local governments. Meanwhile, the planning and implementation of the resettlement work will fully comply with involuntary resettlement policies of the World Bank. See the following table for the policy framework.

Table 4.1 Resettlement Policy Framework Level Policy documents Effective time Land Administration Law of the People’s Republic of China 2004-08-28 Regulation on the Implementation of the Land Administration Law of the 1998-12-27 Peoples Republic of China (Order No.256 of the State Council) The Decision of the State Council on Furthering the Reform and 2004-10-21 Intensifying the Land Administration (No. 28 [2004] of the State Council) Guiding Opinions on Improving Compensation and Resettlement System for 2004-11-3 Land Acquisition (No. 238 [2004] of the Ministry of Land and Resources) Circular of the State Council on Intensifying the Land Control (No. 31 2006-8-31 [2006] of the State Council) Notice of the General Office of the State Council on Forwarding the Guiding Opinions of the Ministry of Labor and Social Security on Effectively Performing the Career Training and Social Security Work for 2006-4-10 the Peasants Whose Lands are Expropriated (No. 29 [2006] of the General Office of the State Council) Measures for Announcement of Land Expropriation (Order No. 10 of the 2002-1-1 Ministry of Land and Resources) Notice of the Ministry of Land and Resources on Furthering Strengthening Management on Land Acquisition (issued by the Ministry of Land and 2010-6-26 Resources on June 26, 2010) Notice on Improving the Policies of Financial Discounts for Small

The state and central ministries and agencies and ministries central and state The Guaranteed Loans and Accelerating the Women's Start-up Businesses and 2009-7-27 Employment (No. 72 [2009] of the Ministry of Finance) Regulation on the Expropriation of Buildings on State-owned Land and 2011-1-21 Compensation (Order No.590 of the State Council) Assessment Method for the Expropriation of Buildings on State-owned Land 2011-6-7 (No.186 [2010] of the Ministry of Housing and Urban-Rural Development) Measures of Qinghai Province on Implementing Land Administration Law 2006-10-1 of the People’s Republic of China (Draft Revision)

Opinions of the People’s Government of Qinghai Province on the

Implementation of the Decision of the State Council on Furthering the 2005-4-26 Reform and Intensifying the Land Administration Notice of the Department of Land and Resources of Qinghai Province on Issuing Compensation Standard for Land Acquisition and Demolition Involved in the Construction of the Second Double Line Project of 2009-5-13

Lanzhou-Xinjiang Railway (No.33 [2009] of Department of Land and Qinghai province Qinghai Resources of Qinghai Province) Notice of the People’s Government of Qinghai Province on Releasing the 2010-5-1 Uniform Standards of Annual Output of Requisitioned Land and the

Level Policy documents Effective time Composite Land Price of Requisitioned Tracts of Land Urgent Notice of the Department of Supervision, the Department of Land and Resources, the Department of Housing and Urban-Rural Development and the Office for Rectifying of Qinghai Province on Further Strengthening 2011 the Administration of Land Acquisition and Demolition and Maintaining the Legal Rights and Interests of the Masses (No. 24 [2011] of the Department of Supervision of Qinghai Province) Opinions of the People’s Government of Qinghai Province on the Implementation of the Regulation on the Expropriation of Buildings on 2011-4-10 State-owned Land and Compensation (No. 24 [2011] of the People’s Government of Qinghai Province) Notice of the General Office of Qinghai Provincial Government on Forwarding the Interim Measures of the Department of Human Resources and Social Security and Other Departments concerning Social Endowment 2012-12-28 Insurance of the Land-Expropriated Peasants (No. 336 [2012] of the General Office of Qinghai Provincial Government) Notice of the General Office of Xining Municipal Government on Issuing Compensation and Resettlement Plan for Land Acquisition and Demolition 2011-8-9 Involved in Xining Station Renovation Project and Related Projects (No. 179 [2011] of the General Office of Xining Municipal Government) Notice of Xining Municipal Government on Issuing Compensation Standards and Price Assessment Rules for House Demolition and 2004-3-4 Resettlement (No. 30 [2004] of Xining Municipal Government) Opinions of Xining Municipal Government of Qinghai Province on Establishing Rural Subsistence Security System (No. 83 [2007] of the 2007-2-14 General Office of Xining Municipal Government) Compensation and Resettlement Measures for the Demolition of Residential 2007-2-8 Buildings on Rural Collective Land in Xining

Notice of the General Office of Xining Municipal Government of Qinghai Province on Issuing Land Acquisition and Demolition Scheme for Xining 2010-2-10 Railway Station Comprehensive Renovation Project Request of Xining Municipal Government concerning the Compensation Standards for Land Acquisition and Demolition Involved in Xining Station 2011-4-25 Renovation Project and Related Projects (No. 53 [2011] of Xining Municipal Government) Xining municipality Xining Circular of Xining Municipal Government on Forwarding the Urgent Notice concerning Further Strengthening the Administration of Land 2011-9-19 Acquisition and Demolition and Maintaining the Legal Rights and Interests of the Masses (No. 133 [2011] of Xining Municipal Government) Notice of the General Office of Xining Municipal Government on Issuing Compensation and Resettlement Plan for Land Acquisition and Demolition 2012-6-3 Involved in Guoluo Road Eastward Extension Project Circular of Xining Bureau of Land and Resources on Forwarding “Notice of the General Office of Qinghai Provincial Government on Forwarding the Interim Measures of the Department of Human Resources and Social 2013-1-11 Security and Other Departments concerning Social Endowment Insurance of the Land-Expropriated Peasants” (No.11 (2013) of Xining Bureau of Land and Resources)

Request concerning the Implementation Scheme of the Pilot Work of Urban 2011-9-13 Residents Social Endowment Insurance in Huangzhong County Announcement of Chengdong District Government of Xining City on

Local Local Resettlement and Compensation Plan for House Demolition Involved in 2010-8-25

or county or of district district of regulations regulations East Section of the Second Double Line Project of Lanzhou-Xinjiang

Level Policy documents Effective time Railway Compensation Plan for Land Acquisition and Demolition Involved in Xining 2012-11-12 Fenghuangshan Expressway Construction Project Opinions of the General Office of CPC Xining Chengbei District Committee and the General Office of Chengbei District Government of Xining on the 2012-5-31 Implementation of Land Acquisition, Demolition and Resettlement in Key Projects of Chengbei District

Operational Policy OP4.12 on Involuntary Resettlement and Its Appendixes 2002-1-1

d d Business Procedures BP4.12 on Involuntary Resettlement and Its Worl Bank 2002-1-1 Appendixes

4.1 Extracts from relevant laws and regulations of national ministries and agencies and the province

4.1.1 Regulations on land ownership and land use right

● The People's Republic of China resorts to a socialist public ownership of land, i.e. an ownership by the whole people and ownerships by collectives. Land in urban districts shall be owned by the State. Land in rural areas and suburban areas of cities excluding those belonging to the state prescribed by law belongs to peasants' collective ownership; house sites, land allotted for personal needs and hilly land allotted for private use belongs to peasants' collective ownership (Article 2 and 8 of The Land Administration Law of the People's Republic of China). ● In order to meet the demands of public interests, it is allowed to expropriate the collectively-owned lands, the premises owned by entities and individuals or other realties in statutory authority and by following statutory procedures. When collectively-owned land is requisitioned, it is required to pay land compensation, resettlement allowance, the compensations for land attachments and green crops and other costs in full amount in accordance with law and arrange social security costs for the land-expropriated farmers to guarantee their livelihood and protect their lawful rights and interests. When the premises owned by entities and individuals or other realties are requisitioned, it is required to offer compensation for demolition and relocation in accordance with law and protect the lawful rights and interests of the expropriated persons; when individuals’ residential houses are requisitioned, it is required to guarantee the living conditions of the expropriated persons (Article 42 of Real Right Law of the People's Republic of China).

4.1.2 Regulations on compensation standards for land acquisition and demolition

● The local governments at and above county level shall take effective measures to guarantee that the living standard of the land-expropriated farmers won’t be impaired by land acquisition and that the land compensation, resettlement allowance and the compensation for land attachments and green crops will be paid in full amount in time in conformity with laws. If the land compensation and resettlement allowance specified by the existing laws are not enough to maintain the original living standard of the land-expropriated farmers or not enough to pay the social security costs for the farmers who lose their lands due to land acquisition, the resettlement allowance shall be increased upon the approval of the government of the province, autonomous region or the municipality directly under central government. If the sum of land compensation and resettlement allowance arrives at the statutory limit but still not enough to maintain the original living standard of the land-expropriated farmers, the local government may use the profits earned from the paid use of state-owned land as supplementation. The government of the province, autonomous region or the municipality directly under central government shall formulate and release the uniform standard of annual output and the composite land price for land acquisition in each city or county to realize the compensation in the same place with the same price. As for the national key construction projects, the costs of land acquisition must be listed into budget estimate in full amounts (Article 12 of The Decision of the State Council on Furthering the Reform and Intensifying the Land Administration). ● The municipal or county government who makes the decision of house expropriation shall make compensation to the expropriated persons, including: (1) Compensation for the value of the expropriated house; (2) Compensation for relocation and temporary resettlement caused by house expropriation; (3) Compensation for the loss resulting from suspension of production or business due to house expropriation The municipal and county government shall offer specific measures to offer the expropriated persons with appropriate allowances and rewards.

The compensation for the value of the expropriated house shall be not lower than the market price of the similar real estates on the announcement date of the house expropriation decision. The value of the expropriated house shall be determined by the properly qualified real estate appraisal organ in accordance with assessment methods for house expropriation. An application for review may be submitted to the real estate appraisal organ if there is any objection to the value of the expropriated house that is determined through appraisal. If the objection still exists to the review results, the Committee of Experts for Real Estate Appraisal may be invited to conduct appraisal verification. The assessment methods for house expropriation are formulated by the competent authority of housing and urban-rural development of the State Council. And, during the formulation process, public opinions shall be solicited openly among the society (Articles 17 and 19 of Regulation on the Expropriation of Buildings on State-owned Land and Compensation). ● Implement the uniform standards of annual output of requisitioned land and the composite land price of requisitioned tracts of land in an overall way. Formulating the uniform standards of annual output of requisitioned land and the composite land price of requisitioned tracts of land is an important measure to improve the land acquisition and compensation system and guarantee the compensation at the same place with the same price and is also a necessary demand to raise the compensation standard for the requisitioned land and maintain the rights and interests of the peasants, so the uniform standards of annual output of requisitioned land and the composite land price of requisitioned tracts of land must be strictly implemented for the expropriation of rural collective land in all kinds of construction projects. The land used in new construction projects must go through strict pre-examination process to ensure that the compensation for the requisitioned land is calculated according to the uniform standards of annual output of requisitioned land and the composite land price of requisitioned tracts of land that have been released and is listed into the budget estimate in full amount. When the lands used in construction projects are located in the area where the same annual output and the same composite land price are adopted, the compensation standard shall be basically the same to realize the compensation at the same place with the same price. The dynamic adjustment system of compensation standard for the expropriated land

shall be established in all areas to make adjustment every two to three years according to the economic development and the growth of per capita incomes so as to gradually raise the compensation level. Adjustment shall be made in such way as soon as possible if the existing compensation standard has been used longer than the time limit; otherwise, the use of land won’t be approved in examination process (Notice of the Ministry of Land and Resources on Furthering Strengthening Management on Land Acquisition, June 2010). ● Notice of the People’s Government of Qinghai Province on Releasing the Uniform Standards of Annual Output of Requisitioned Land and the Composite Land Price of Requisitioned Tracts of Land This standard is applicable for the calculation of the compensation for the expropriated collective land. Compensation shall be calculated by referring to this standard and other related regulation when state-owned agricultural land and construction land are expropriated. This standard is composed of two parts, i.e. the Uniform Standards of Annual Output of Requisitioned Land and the Composite Land Price of Requisitioned Tracts of Land. Xining adopts the composite land price of requisitioned tracts of land, and compensation is calculated according to different kinds of composite land prices for the requisitioned tracts of land The uniform standards of annual output of requisitioned land are adopted in other counties (cities) of the province, and the compensation shall be calculated according to the corresponding level of standard of annual output in different areas.

4.1.3 Regulations on resettlement approaches of the land-expropriated peasants

● The local governments at and above county level shall develop specific measures to guarantee the long-term livelihood of the land-expropriated peasants. In the projects with steady profits, the peasants can invest with the legally-approved land use right of construction land. Within the urban planning area, local governments shall incorporate the peasants who lose their lands due to land acquisition into the urban employment system and establish social security system for them; Outside the urban planning area,

when rural collective lands are requisitioned, local governments shall reserve necessary cultivated land or arrange jobs for the peasants within their administrative regions. Those land-expropriated peasants who can’t reach basic production and living conditions shall be resettled in other places (Article 13 of The Decision of the State Council on Furthering the Reform and Intensifying the Land Administration). ● The land-expropriated peasants can choose from the following resettlement approaches: (1) agricultural production placement: when the rural collective land outside of urban planning area is requisitioned, the mobile rural collective land reserved in advance, the contracted land returned by the contracting peasants voluntarily, the increased cultivated land generated during the circulation of contracted land and the land development and consolidation process shall be used to provide necessary cultivated land to the land-expropriated peasants so that they can engage in agricultural production continuously; (2) Job placement: conditions shall be created actively to offer skill training for free and arrange proper jobs for those land-expropriated peasants. In the same conditions, the land-expropriated peasants shall be given priority by the employers. If the expropriated rural collective land is within urban planning area, the land-expropriated peasants who lose their lands due to land acquisition shall be incorporated into the urban employment system and social security system shall be established for them; (3) Investment and bonus placement: in the projects that have long-term steady profits, the rural collective economic organizations can negotiate with the land users to invest with the compensation and resettlement costs for land acquisition or the approved land use right of construction land at appraisal price on the condition that the peasants are consent. The rural collective economic organizations shall conclude a contract with the peasants to specify that the profits will be provided in the form of preferred stock; (4) Non-local resettlement: if the area can’t provide basic production and living conditions to the land-expropriated peasants due to land acquisition, the non-local resettlement may be conducted under the uniform organization of the government and by fully considering the opinions of the rural collective economic organizations and the peasants (Article 2 of Guiding Opinions on Improving Compensation and Resettlement System for Land Acquisition).

4.1.4 Regulation on information disclosure about land acquisition

●During land acquisition, the rural collective land ownership and the rural land contracted management right shall be maintained. Before land acquisition is reported for approval in accordance with laws, the purpose, land location, compensation standards and resettlement approaches shall be notified to the land-expropriated peasants; the survey results about the current conditions of the land to be requisitioned shall be confirmed by the rural collective economic organizations and the peasants; if necessary, the authority of land and resources shall organize a hearing according to related provisions. The documents concerning the notification to or the confirmation from the land-expropriated peasants shall be taken as essential documents to be submitted for the approval of land acquisition. The establishment and improvement of the system for the settlement of disputes over the compensation for and relocation due to land acquisition by coordination and ruling shall be accelerated to protect the lawful rights and interests of the land-expropriated peasants and land users. The approved land acquisition shall be publicized except for special circumstances (Article 14 of the Decision on Furthering the Reform and Intensifying the Land Administration). ● The governments of the province, autonomous region and the municipality directly under central government shall make out proper allocation method of land compensation inside the rural collective economic organizations in the principle of land compensation mainly being used for the land-expropriated peasants. The rural collective economic organizations shall publish the information concerning the incomes & expenditures and allocation method of land compensation to receive the supervision from their members. The agricultural and civil affairs authorities shall enhance the supervision on the allocation and use of land compensation inside the rural collective economic organizations (Article 15 of the Decision on Furthering the Reform and Intensifying the Land Administration). ●Administrative agencies should disclose government information promptly and accurately. When administrative agencies discover false or incomplete information that affects or might affect social stability and disturbs the social management order, they should release, within their scope of responsibility, accurate government information to clarify the situation. (Article 6 of the Regulation of the People's Republic of China on the Disclosure of Government Information).

●Government information to be disclosed on administrative agencies’ own initiative should be disclosed by means of government gazettes, government websites, press conferences, as well as through newspapers and other publications, radio, television and other methods that make it convenient for the public to be informed (Article 15 of Regulation of the People's Republic of China on the Disclosure of Government Information). ● The people’s governments at all levels shall set up government information reading places in the state archives and public libraries and install appropriate facilities and equipment to make it convenient for citizens, legal persons and other organizations to obtain government information. Administrative agencies may set up, as needed, places and facilities, such as public reading rooms, materials request stations, information bulletin boards, and electronic information screens to disclose government information. Administrative agencies should provide the state archives and public libraries with government information disclosed on their own initiative in a timely manner (Article 16 of Regulation of the People's Republic of China on the Disclosure of Government Information). ● When house expropriation meets with the provisions of Article 8 of Regulation on the Expropriation of Buildings on State-owned Land and Compensation, the project employer shall file an application to the department of house expropriation accompanied by the approval documents of the construction project, the certificates certifying the conformity with related planning, land use planning red-line map of construction project and the documents about the grant of the state-owned land use right etc. The department of house expropriation shall post notification of house expropriation stating the rights and obligations of the expropriated persons in the range of house expropriation within 3 days upon the receipt of the application and related materials from the project employer, and shall entrust the implementation department of house expropriation to conduct through investigation on the ownership, location, purpose, build area and other conditions of the houses in the target area and the expropriated persons shall offer cooperation. The department of house expropriation shall publish the investigation results among the expropriated persons in the range of house expropriation (Opinions of the People’s Government of Qinghai Province on the Implementation of the Regulation on the Expropriation of Buildings on State-owned

Land and Compensation). 4.2 Involuntary resettlement policies of the World Bank

● The implementation of resettlement work shall be coordinated with the implementation of project investment components to prohibit the presence of moving or restrictive occupation before the implementation of necessary resettlement measures. As for the impacts included in the paragraph 3(a) of the policy, the measures include providing compensation or other necessary assistances for relocation prior to moving and preparation and before providing well-equipped resettlement sites. Especially, land acquisition and related assets can only arise after the payment of compensation (after the resettlement sites and relocation grants have been provided to the displaced persons if possible). As for the impacts corresponding to the paragraph 3(b), the measures to assist the displaced persons shall be implemented according to the action plan (as part of the project). ● The land-based resettlement strategy shall be given priority for the displaced persons who live on land, including resettling them on public land or the purchased or otherwise obtained private land. The substitutive land provided to the displaced persons, if any, shall be at least equivalent to the expropriated land on aspects of potential productivity, location and other factors. If the displaced persons won’t give priority to the land-based resettlement strategy, or if the provided land may have adverse impact on the sustainability of the park or protection zone or if it is impossible to obtain adequate land at a proper price, the non-land-based employment or self-employment resettlement scheme shall be offered in addition to cash compensation for the losses of land and other properties. In case of lack of sufficient land, explanations and records shall be made as required by the bank. ● Qualification criteria: the displaced persons are composed of three types: The persons who have formal land ownership (including the common law and traditional law acknowledged by the laws of the country); The persons who had no formal land ownership at the beginning of the survey but claimed the possession of the land or assets if such claim is recognized by the laws of this country or is accepted after the confirmation process of resettlement action plan; The persons whose rights or claims on the land possessed by them are not

recognized. 4.3 Resettlement policy framework of this project

All resettlement policies to be implemented by this project must comply with the resettlement policies issued by Qinghai Province, Xining municipality, the World Bank and other related places. This Resettlement Action Plan will be implemented after approved by the World Bank and Xining municipal government.

4.3.1 Requisition of collective land and resettlement policies

The compensation principle, compensation standard, land acquisition procedures and supervision mechanism for the land acquisition and resettlement in this project are formulated in accordance with the Land Administration Law of the People’s Republic of China, Regulation on the Implementation of the Land Administration Law of the Peoples Republic of China, Regulation on the Expropriation of Buildings on State-owned Land and Compensation, Measures of Qinghai Province on Implementing Land Administration Law of the People’s Republic of China (2006), Notice of the Ministry of Land and Resources on Furthering Strengthening Management on Land Acquisition (June 2010), Notice of the People’s Government of Qinghai Province on Releasing the Uniform Standards of Annual Output of Requisitioned Land and the Composite Land Price of Requisitioned Tracts of Land and related policies of Xining City, Chengbei District and Huangzhong County. The compensation standard for expropriated land in the affected area of this project will not be lower than the compensation standard specified in the above documents. Since most of the expropriated land is distributed at Chengbei District of Xining and according to Notice of the People’s Government of Qinghai Province on Releasing the Uniform Standards of Annual Output of Requisitioned Land and the Composite Land Price of Requisitioned Tracts of Land, Taobei Village, Wangjiazhai, Dabaozi Village and Wuzhong Village all are category-II land sections, the composite land section price is 90,000 Yuan/mu and the compensation for green crops is 2700 Yuan/mu. Most of the cultivated land has been transferred out or leased out to serve as nursery stock base or vegetable base by building greenhouses, so according to Sheet 5 in Notice of Qinghai Province on Issuing Compensation Standard for Land Acquisition and Demolition

Involved in the Construction of the Second Double Line Project of Lanzhou-Xinjiang Railway, the compensation for nursery stock is 36000 Yuan/mu when calculated based on the rational assumption that the highest price is 9 Yuan/plant and there are 4000 plants/mu. It’s stipulated in the same document that the compensation shall be made for the attachments of greenhouses according to the second and third items in Sheet 3, using standard for the second-class steel-frame structure: 57 Yuan/m2 or 38000 Yuan/mu. The compensation for homestead land or the land of other purposes shall be made by referring to the cultivated land (crop field), but no compensation for green crops.

4.3.2 Policy on permanent occupancy of state-owned land

The state-owned land occupied by this project is obtained by way of paid resumption and unpaid allocation. If the state-owned land use right is obtained by way of allocation, the compensation shall be made according to 60% of the standard land price; if the state-owned land use right is obtained through all kinds of contracts, the compensation shall be made according to the difference between the standard land price and the amount corresponding to the period of use; if the state-owned land use right is obtained by means of bid, auction or listing, the compensation shall be made according to the difference between the price at which the land is obtained by such means and the amount corresponding to the period of use, see No. 53 [2011] of Xining Municipal Government, April 25, 2011 (Request of Xining Municipal Government concerning the Compensation Standards for Land Acquisition and Demolition Involved in Xining Station Renovation Project and Related Projects,).

4.3.3 Demolition of residential houses and resettlement policy

1) Demolition of rural residential houses and resettlement policy The compensation standard and resettlement scheme for the demolition of rural residential houses are formulated through full consultation with the affected households in accordance with the related regulations and policies of the state, the province and the municipality. The relocated households will receive compensation for the demolished houses in the principle of full replacement price by considering the difference on house structure, and also the transitional costs, relocation grants and relocation rewards.

The one-off cash compensation shall be made for house attachments and fixtures after field appraisal conducted by a qualified real estate appraisal organ in accordance with the assessment and compensation standard of attachments in this plan. The principle of “resettlement before demolition” shall be followed to fully consider the actual conditions of the displaced persons. Transitional resettlement, such as temporary resettlement houses or transitional houses, or transitional compensation in cash as displaced persons required shall be provided to guarantee that “the persons whose houses are demolished have place to dwell”. On the basis of the conformity with laws, regulations and related policies, the affected villages shall finally determine the resettlement mode through democratic discussion and decision at the villagers’ conference by considering the land conditions and the wishes of the relocated households: resettlement in multi-storey residential apartments or disperse-resettlement. 2) Demolition of nonresidential houses and resettlement policy A. Compensation policy for nonresidential houses on state-owned land The compensation for the demolished houses used for commercial, office or other nonresidential purposes on state-owned land shall be made with one-off method in cash after appraised by a qualified real estate appraisal organ. The units that do need non-local resettlement due to large area of overall demolition shall be reported to and decided by the municipal government. B. Compensation policy for nonresidential houses on collective land The nonresidential houses on collective land that are affected by this project all are used for production and business of enterprises. Cash compensation shall be the main resettlement method, including compensation for the construction costs of the houses and for the loss resulting from suspension of production and business. C. Compensation for economic losses incurred from business suspension As for the losses of production and business arising from the demolition of the houses used for production and business of enterprises, 12 months’ compensation shall be made with one-off method according to the minimum wage standard of previous year at Xining City, and the number of the employees shall be calculated by referring to the employment contracts kept in the department of labor and social security in the last month before the publicity of house demolition announcement and also the tax payment

certificates of the previous year.

4.3.4 Transitional allowance, moving allowance and traffic allowance for primary and high school students

1) Transitional allowance: if transitional resettlement is required for the demolition of residential houses due to road construction or if the residential houses of villagers on collective land need to be demolished, transitional allowance shall be paid at 4 Yuan/m2/month based on the building area of the houses. The transition period is 30 months. If extension is necessary, application shall be made. 2) Moving allowance: 1000 Yuan for each household with one-off payment method, and 120 Yuan/vehicle (vehicle load: 5 tons) for the units based on the actual moving volume with one-off payment method; 3) Traffic allowance for primary and high school students: 300 Yuan/person with the one-off payment method. The number of primary and high school students shall be calculated according to the actual situations, at most two in one family.

4.3.5 Supporting policies for vulnerable population

The households enjoying the minimum living guarantee, enjoying the five guarantees and having disabled members whose houses are demolished can receive ten thousand Yuan per household as allowance for the difficulty in moving by presenting the corresponding certificates in addition to the compensation and resettlement provided according to the compensation and resettlement standard for demolition of villagers’ houses. The disabled has the priority to choose their apartments in which floor.

5. Compensation Standard for Resettlement

According to the law and policy framework applied in the project and with the aim to recover and improve the livelihood of the affected population in a short term, basing on the practical conditions of the affected area of the project, the compensation standards for resettlement of the project was made after the full consultation with the relevant authorities in Xining and the affected population. If new and preferential policies are issued by Xining Municipal Government during the implementation of the project, the new policies shall prevail. 5.1 Compensation standards for expropriation of rural collective land

According to the Land Administrative Law of the People’s Republic of China, the Guiding Opinions on Improving Compensation and Resettlement System for Land Acquisition, the Measures of Qinghai Province on Implementing Land Administration Law of the People’s Republic of China(Draft Revision), Notice of the People’s Government of Qinghai Province on Releasing the Uniform Standards of Annual Output of Requisitioned Land and the Composite Land Price of Requisitioned Tracts of Land as well as other relevant laws and regulations in Xining, the land compensation standards of the project was formed after the consultation with the affected population and based on the practical conditions of the affected area. See Table 5-1.

Table 5-1 Compensation Standard for Acquisition of Rural Collective Land in the Affected Area Compensation standard (Yuan/mu) Compensation for green crop, Type of the land Composite land price of nursery stock and ground Total requisitioned tracts of land attachments Cultivated land 90,000 2,700 92,700 (crop field) Nursery garden 90,000 36,000 126,000 Greenhouse 90,000 38000＋2700 130700 According to field survey, the crops planted here, mainly wheat or rape, have only one harvest every year. The wheat has high production but low production value; the case for rape is on the contrary. Generally, for wheat, the production is 400kg/mu, the unit price is 2.4-2.8Yuan/kg, so the gross income is about 1000-1200Yuan/mu without

deducting the costs: 500-600Yuan/mu (fertilizer and pesticide). For rapeseed, the unit price is 5.6-6Yuan/kg and the production is 250-300kg/mu, so the production value is 1400-1800Yuan/mu without deduction of costs: 600-700Yuan/mu. Taking the maximum values 700Yuan/mu for wheat and 1200Yuan/mu for rapeseed as pure income of land, it can be seen that the compensation standard is 128 times (for wheat) or 75 times (for rape) the pure land income. Much of the land has been circulated or leased out with rent usually not more than 1500Yuan/mu/year, so the compensation standard is over 60 times such income level. Even if taking 2700Yuan/mu compensation for green crops as annual value of production, the current standard is still 33 times the income level and it absolutely conforms to the provisions of the Land Administration Law.

Table 5.2 Tax standard for land acquisition Tax Collection standard Charge for the paid use of newly 27,997Yuan/mu added construction land Cultivated land reclamation fee 3,600Yuan/mu Cultivated land occupancy tax 1333.33Yuan/mu Land administrative fee 4% 5.2 Compensation for permanently-occupied state-owned land

Table 5.3 Compensation standard for acquisition of state-owned land Base land Compensation standard Affected unit price(Yuan/mu) (10,000Yuan/mu) Xining No.1 Vocational 260,000 156,000 School Xichuan Metal Products Plant, Huangzhong County 260,000 156,000 (steel mill) Parking lot of Qinghai 260,000 156,000 Wutong Group

The acquisition of state-owned land of the project includes three parts: Xining No.1 Vocational, the steel mill, and parking lots, all the three are state-owned construction land, covering 8.46mu in total. If the state-owned land use right is obtained through allocation, the compensation standard shall be 60% of the base land price (See Table 5.3).

5.3 Compensation standard for land to be occupied temporarily

A certain area of land shall be occupied temporarily during the construction, and the temporary land occupation plan shall be made based on the construction progress and scale. At current preparatory stage, only temporary land occupation plan shall be implemented. The charges shall be identified as certain proportion of the specified construction and installation fee and shall be included in the site preparation fee and temporary facility fee specified under the Feasibility Report. The fees shall be excluded in the land acquisition and demolition budget estimate. 5.4 Compensation standard for rural residential houses to be demolished

According to the resettlement survey and activities of public participation, the Notice of Xining Municipal Government on Issuing Compensation Standards and Price Assessment Rules for House Demolition and Resettlement (No.30 [2004] of Xining Municipal Government) (hereunder called the No.30), issued in 2004 by Xining Municipal Government, remains to be the main legal basis for the compensation and resettlement policies for house demolition in the major municipal engineering construction projects in recent years. This document specifies the compensation standards and price assessment rules for house demolition and resettlement in Xining according to the principle of replacement price. During the seven or eight years of its implementation since the date of promulgation (April 3, 2004), no other policies have been issued as a substitution. Still based on policies specified under the No.30 and in consideration of the practical conditions of the project area, the compensation standard for the demolition of rural residential houses is formulated for this project (see Table 5.4).

Table 5.4 Compensation standard for the demolition of rural residential houses Types of Types of Compensation affected Unit Notes Construction standard items Frame Yuan/ m2 1,230 Land price excluded, and the Residential structure compensation of houses Brick-concrete Yuan/ m2 1,124 90,000Yuan/mu of homestead Wood- brick Yuan/ m2 1,112 land shall be paid to rural

Earth-wood Yuan/ m2 1,035 collective unit. Earth-concrete Yuan/ m2 998

Utility room Yuan/ m2 600 Demolition Yuan /household 1,000 subsidy Transition period shall be Other within 24 months. If extension compensation Transition is necessary, the dislocated fund Yuan/Month/ m2 4 allowance households will be arranged at the public rental houses at the nearby tools factory area. To judge whether the compensation standard for the demolition of rural residential houses in this project can meet the demand of relocated households to rebuild houses, an analysis is carried out on construction costs of houses in local area. It’s known from the analysis that replacement prices are as follows: 1227.28Yuan/m2 for frame structure, 785.93Yuan/m2 for brick-concrete structure, 774.57Yuan/m2 for brick-wood structure and 681.09Yuan/m2 for earth-wood structure, all lower than the compensation prices for the houses of the same structure specified in this project. In addition, the resettlement consulting agency investigated the house construction around the project area and found that the real construction cost is lower than the compensation cost for the house with the same structure set by the project. So the compensation fund provided to the relocated rural households is sufficient for them to build the houses with the same structure and the same area.

Considering that the centralized resettlement method in multi-storey residential buildings is used in most cases for demolition of houses on collectively-owned land within urban construction and planning scope of Xining city in recent years, an analysis is carried out on whether the above compensation standard can meet the need to purchase resettlement house from perspective of the construction and installation costs of multi-storey resettlement buildings. It’s found from the survey that the construction and installation cost of multi-storey buildings in the affected area is 1500Yuan/m2 (after deducting various taxes and fees including the charges for three supplies and one leveling) and according to the results of the first physical indicators investigation, the per capita living area is 80m2. According to the above compensation standard, the compensation amount for brick-concrete structure is 89920Yuan, which is equivalent to 60m2 of multi-storey buildings. Field survey shows that although the per capita living area is 80m2, rather large space is used for storage of agricultural machinery and as depot and the actual living area is about 50-60m2/person. The resettlement site is

equipped with tent like structure or basement specially used for the storage of agricultural machinery and as depot, so per capita resettlement area of 50-60 m2 can meet displaced person’s demand absolutely. Furthermore, each displaced family has one or two extra house for rental.

Finally, compared with the price of the commodity houses in the surrounding area, the price of commodity houses nearby the tools factory area is about 3000Yuan/m2, which is 1000Yuan higher than the construction and installation cost of multi-storey resettlement buildings, that is to say, the displaced persons move in new houses without spending one dollar and the new houses have potential of increasing value immediately by 1000Yuan/m2. After the confirmation of house compensation standards, during the demolition, qualified appraisal organ shall be commissioned to evaluate the compensation.

The relocated households affected by the project shall obtain relocation grants and transitional allowance in addition to the compensation for house demolition. Relocation grants are as follows: 1000 Yuan for each household with one-off payment method, and 120 Yuan/vehicle (vehicle load: 5 tons) for the units based on the actual moving volume with one-off payment method. In case of demolition of residential houses of villagers on collective land, transitional allowance shall be paid at 4 Yuan/m2/month based on the building area of the demolished houses. The transition period is 30 months. If extension is necessary, the dislocated households will be arranged at the public rental houses at the nearby tools factory area for free during extension period, with relocation grants but without transitional allowance. 5.5 Compensation standard for demolition of non-residential houses

According to the survey, five non-residential enterprises and one public institution are affected in the project, including Xining No.1 Vocational School and the steel mill (not in production), the two of which are built on state-owned land. Three organizations built on collectively-owned land are affected in the project, of which in suspension of production and one in normal operation.

5.5.1 Compensation standards for demolition of non-residential houses built on collectively-owned land

With regard to non-residential houses built on collectively-owned land affected in the project, the compensation standard for nonresidential houses is established based on the principle of full replacement price and according to the provisions of No. 30[2004] Document. See Table 5.5.

Table 5.5 Compensation standards for demolition of non-residential houses built on collectively-owned land

Types of Affected Compensation Types of Structures Unit Note Items standard Buildings of enterprises Brick-concrete Yuan/m2 1,014 used for production and Brick-wood Yuan/m2 969 office Losses resulting from suspension of Yuan/ 12 months production and m2/month business Equipments moving Yuan/(per set) fee Other compensation 12 months’ funds allowance shall be Transitional paid at one time, allowance Yuan/person/m and another (employees’ salary onth proposal and review allowance) shall be made for another transition

A total area of 1,052.93m2 of brick-concrete structures and 25.3m2 of brick-wood structures, covering Duobarunbei Cement Plant, Jieling Materials Recycling Company, Xining Xichuan Cement Pipe Plant and Wangjiazhai Villagers Committee, are affected in the project. Duobarunbei Cement Plant and Jieling Materials Recycling Company have stopped production. As a result of consultation, only monetary compensations shall be made without other forms of compensations.

5.5.2 Compensation standard for demolition of non-residential houses built on state-owned land

With regard to non-residential houses built on state-owned land affected in the project, the compensation standard for nonresidential houses is established based on the principle of full replacement price and according to the provisions of No. 30[2004]

Document. See Table 5.6.

Table 5.6 Compensation Standard for Demolition of Non-Residential Houses Built on State-Owned Land

Types of Compensation Types of structures Unit Notes affected items standards Buildings of enterprises Brick-concrete used for Yuan/m2 1,225 structures production and office Losses resulting from suspension of Yuan/m2/mo 12 months production and nth business Equipments moving Yuan/(per Other fee set) compensation 12 months’ funds allowance shall be Transitional allowance Yuan/person paid at one time, and (employees’ salary /month another proposal and allowance) review shall be made for another transition Brick-concrete structures of Xichuan Metal Products Plant (steel mill) and Xining No.1 Vocational School, covering 4,714.5m2 will be affected in the project. The steel mill is no longer in production and doesn’t intend to recover the production. As the demolition area of Xining No.1 Vocational School is not large, its teaching activities won’t be disturbed. As a result of consultation, only monetary compensations shall be made without other forms of compensations. 5.6 Compensation standards for vulnerable population

14 households, totally 67 persons as vulnerable population will be affected in the project. According to the project implementation practice in Xining and the Opinions of Xining Municipal Government of Qinghai Province on Establishing Rural Subsistence Security System (No. 83 [2007] of the General Office of Xining Municipal Government), the project office has decided to provide extra allowance amounting to 10,000 Yuan for the extremely needy households, the households enjoying minimum living standards, the households having disabled member and female householder families, in order to resume their production and living during resettlement.

5.7 Compensation standards for attachments

According to the Notice of the Department of Land and Resources of Qinghai Province on Issuing Compensation Standard for Land Acquisition and Demolition Involved in the Construction of the Second Double Line Project of Lanzhou-Xinjiang Railway (No.33 [2009] of Department of Land and Resources of Qinghai Province), the project office has commissioned a qualified appraisal organ, which has conducted investigations on attachments among affected households and has provided compensation standards for all kinds of attachments affected (See Table 5-7 and Table 5-8).

Table 5-7 Summary sheet of unit prices of attachments affected in World Bank project

Unit Unit Unit Unit No. Attachments No. Attachments No. Attachments No. Attachments Price Price Price Price Ceramic tile Cement 110 120 36 Rubble slope 198 1 21 kitchen 41 Water pool 61 flooring Yuan/M2 Yuan/pc Yuan/pc protection Yuan/M2 range 1000－ Wood 90 750 60 2 Cesspool 1200 22 42 Anti-theft door 62 Guardrail 2 wainscot Yuan/M2 Yuan/pc Yuan/M Yuan/M2 350 20 Steel window 68 600 3 Water cellar 23 Rails 43 63 Toilet Yuan/pc Yuan/m partitions Yuan/M2 Yuan/M2 Stainless 32 140 Aluminum 162 300 4 adobe wall 24 steel 44 64 Shrine Yuan/M2 Yuan/M2 partition Yuan/M2 Yuan/pc handrail 90－100 25 180 Steel window 68 5 brick wall 25 Curtain rod 45 Marble worktop 65 Yuan/M2 Yuan/M Yuan/M2 ceiling Yuan/M2 36 Marble 192 90 Kitchen 100 6 Simple shed 26 46 Flower bed 66 Yuan/M2 flooring Yuan/M2 Yuan/M2 range Yuan/pc Ceramic Wood 2400 280 17 96 7 gate tower 27 operation 47 Floor tile 67 suspended Yuan/pc Yuan/M2 Yuan/M2 Yuan/M2 cabinets ceiling Solid wood Brick door 800 Tile 90 860 8 28 48 Heating unit 30 元/片 68 door and seat Yuan/set paintings Yuan/M2 Yuan/set door pocket Paint-free Sunning 110 Wood 77 140 720 9 29 49 Operation table 69 door & door ground Yuan/M2 window Yuan/M2 Yuan/M2 Yuan/set pocket Decorative 75 Fixed 480 Electric cooking 680 Various 280 10 ceramics on 30 50 70 Yuan/M2 cabinet Yuan/M2 range Yuan/set partitions Yuan/M2 interior wall Aluminum 205 Fixed 560 150 80 11 31 51 Electricity meter 71 Floor tile alloy window Yuan/M2 wardrobe Yuan/M2 Yuan/pc Yuan/M2 Aluminum Aluminum alloy doors & 137 Brick 396 80 210 12 32 52 Crypt 72 alloy sliding windows Yuan/M2 column Yuan/M2 Yuan/pc Yuan/M2 door (poor) Aluminum Door and 205 Sandwich 380 Heatable brick 100 260 13 alloy doors & 33 53 73 window Yuan/M2 color plate Yuan/M2 bed Yuan/M2 Yuan/pc windows pockets plastic steel 220 60 95 440 14 34 Doghouse 54 Garden wall 74 Antique shelf window Yuan/M2 Yuan/pc Yuan/M2 Yuan/M2 15 Steel window 68 35 Steel 68 55 Aluminum alloy 162 75 Wooden door 120

Yuan/M2 window Yuan/M2 enclosure Yuan/M2 Yuan/M2 enclosure 110 120 200 55 16 Tread 36 Iron gate 56 Granite worktop 76 Road bricks Yuan/M2 Yuan/pc Yuan/M2 Yuan/M2 Interior 60－80 Brick 17 40 Composite 85 17 37 57 Pvc ceiling 77 facing brick Yuan/M2 ground Yuan/M2 Yuan/M2 wood floor Yuan/M2 Aluminum External 50－90 256 Gypsum board 31 alloy doors 170 18 38 Pig house 58 78 facing bricks Yuan/M2 Yuan/M2 ceiling Yuan/M2 & windows, Yuan/M2 without glass 120 Water supply 370 24Single 90 60 19 Glazed tile 39 59 79 Slope bricks Yuan/M device Yuan/pc plastered wall Yuan/M2 Yuan/M2 Heatable 480－ Foundation of 110Yuan/ 51 Operation 260 20 ceramic tile 2 40 Well 1000 60 precast slab 2 80 2 M Yuan/M cabinets Yuan/M bed Yuan/pc enclosing wall Note: there are 24 tombs to be moved in this project. Tomb relocation fee is 300yuan/each.

Table 5-8 Summary Sheet of unit prices of Scattered plants affected in World Bank project

Unit Unit Unit Unit No. Attachments Price No. Attachments Price No. Attachments Price No. Attachments Price (￥) (￥) (￥) (￥) Deciduous Flower trees Bamboo Pepper tree 1 22.5 9 72 17 54 24 90 arbors (large) (large) (cluster) (large) Deciduous Flowering Flower trees Pepper tree 2 arbors 18 10 54 18 shrubs 27 25 45 (medium) (medium) (medium) (cluster) Deciduous Flower trees Pepper tree 3 13.5 11 27 19 Elm (medium) 18 26 27 arbors (small) (small) (small) Chinese Evergreens Fruit trees 4 54 12 90 20 Pine 36 27 herbaceous 27 (large) (large) peony Evergreens Fruit trees narrow-leaved Clove tree 5 45 13 45 21 45 28 40 (large) (medium) oleaster (small) Evergreens Fruit trees Dragon spruce Medlar 6 27 14 27 22 27 29 40 (small) (small) (small) (small) Grapevine 7 Cypress 27 15 Sabina chinensis 36 23 4 30 Peony (small) 27 (small) 8 Poplar 22.5 16 Flowering plum 54

6. Resettlement and Rehabilitation Implementation Plan

6.1 Objectives, methods and principles of resettlement and rehabilitation

6.1.1 Objectives

According to the requirements of World Bank’s involuntary resettlement implementation policies, national laws and regulations, the overall resettlement objective of World Bank Funded Xining Urban Transit Project is to recover and improve the living standard and production of the affected population. Specific objectives are: ● Resettle the displaced households and provide monetary compensations according to the replacement cost, so as to ensure that their living quality and environment will return to or go beyond previous standards; ● Provide compensations for all kinds of affected land attachments according to replacement cost; ● Compensate for or restore infrastructure to previous functions; ● Restore or improve public infrastructure and community environment of affected communities; ● Resettle affected labor forces, guarantee their long-term livelihood, restore and improve their living standard, and make sure that no peasant will lose their job permanently from land acquisition.

6.1.2 Methods

The plan focuses on simultaneous resettlement and rehabilitation of the living standard and production of the affected population. Living resettlement and rehabilitation is mainly about restoration of demolished houses and living facilities. It mainly includes: ● Provide monetary compensation or resettlement housing for demolished houses, the living quality and environment of which shall not be lower than previous levels;

● Guarantee that all necessary living facilities and services are provided in the new living surroundings; Production resettlement and rehabilitation is mainly about labor reemployment and restoration of production facilities. It mainly includes: ● Provide reasonable compensations for expropriated land to protect the income source of affected population from land acquisition; ● Provide assistance to the production and employment of labor forces in the affected population, and protect their long-term living from land acquisition.

6.1.3 Principles

● Full participation of affected population in the entire resettlement process The affected population or their representatives shall participate in the negotiations on housing and facility compensation standards, relocation place selection, demolition schedule arrangement, rehabilitation schedule arrangement, fund allocation, use and management of resettlement fund, restoration measures of production and operation, etc. Such negotiations shall be conducted in forum of affected population representative or resident peasant consultations. ● All kinds of personal compensations shall be delivered fully and directly to property owner. Any company or individual is prohibited from retaining or embezzling other’s compensations. ● Provide assistance and care to vulnerable population. 6.2 Resettlement of displaced households in rural areas

Resettlement of displaced households is an important part of this resettlement plan, and it is also a topic under repetitive negotiations between Project Office and the affected population. The project demolishes rural housing of 146468.38m2 (including living room and utility room), affecting 121 households and 527 residents. The demolished houses have problems such as insufficient indoor and living facilities, aging structure, poor lighting, and ill-equipped living surroundings. This land acquisition and resettlement project also provides an opportunity to improve the living conditions and surroundings of the displaced households. During June to July 2012 and January 8th to 18th in 2013, the Project Office and the

resettlement consulting agency twice made extensive and in-depth investigation and consultation among the population affected by house demolition. The first time is to publicize existing Xining urban construction policies on land acquisition, relocation and reconstruction, introduce the implementation methods of house demolition in similar projects under construction and get to know the resettlement wishes of the displaced households as the basis for the formulation of resettlement plan. At that time, three resettlement methods are provided for choice of the displaced persons: 1) monetary resettlement, with compensation to be made according to the replacement price and the housing problem to be solved by the displaced persons themselves; 2) centralized construction of multi-storey residential apartments for centralized resettlement; 3) allocation of homestead land according to the principle of “one residence per household” in the range of the village for centralized resettlement, with houses to be constructed by the households themselves or by the village collective uniformly. Almost all villagers in Taobei village chose the mode of centralized construction of multi-storey residential apartments for centralized resettlement. At Wangjiazhai Village, there are totally 42 households affected by house demolition in this project and 33 households participated in this investigation. The result of the investigation shows that no one chooses monetary resettlement, 22 choose the method of “one residence per household” and 11 choose the mode of multi-storey residential apartments. Only five households are affected by house demolition in Zuoshu Village. They can not be resettled in the mode of multi-storey residential apartments and have to choose “one residence per household”. One of the project areas - Chengbei District has been included in the overall urban construction planning of Xicheng New District. According to the policies of Ministry of Land and Resources and Xining municipality, for demolished houses on collective land within urban construction planning area, in principle, homestead land will not be provided to the affected households. Instead, uniform reconstruction planning is adopted for their resettlement. In recent years, all kinds of urban construction projects in Xining City basically adopt the method of concentrated resettlement in multi-storey residential apartment, and there are some successful cases. For instance, transformation of Chaoyang Village and Sitaizi Village due to the construction of airport high-speed landscape corridor (Xining Section) provides valuable experience for the concentrated

resettlement in multi-storey residential apartment in this project (See figure 6-1 and 6-2).

Figure 6-1Chaoyang Village Resettlement site Figure 6-2 Sitaizi Village Resettlement Site Therefore, before the second public consultation, through repeated consultation and exploration by the project office and the municipal bureau for urban planning, two resettlement sites are defined. Site 1 is located 150 meters in east of Taobei Village and on the north side of westward extension of Western Wusi Road. It is planned to build two multi-storeyed commercial-residential buildings here for the resettlement of the households with houses demolished in Taobei Village. Site 2 is located 200 meters in south of Wangjiazhai Village and on the east side of Xicheng Avenue. It is planned to build one multi-storeyed commercial-residential building here for the resettlement of the households with houses demolished in Wangjiazhai Village (See Figure 6-3 and 6-4). The resettlement site is near to the original residence of the households, and is fully equipped with public facilities such as plumbing and winter heating. It makes their life more convenient with higher quality, and minimizes the negative effect on the effected families on aspects of social relations, living habits and etc.

Figure 6-3 Opinions of Xining Planning Bureau on Location of Resettlement Sites

Figure 6-4 Location of Resettlement Sites in Map (Red Points)

The focus of the second public consultation is Wangjiazhai Village. The Project Office, Chengbei District government and resettlement consulting agency illustrate the advantages of multi-storeyed residential apartment resettlement method: 1) complete public facilities and better living environment; 2) it is organized by the Village Committee which the villagers are familiar with and trust; 3) concentrated resettlement won’t change neighborhood relations; 4) specific place for storage of agricultural machinery and other articles; 5) successful cases of concentrated resettlement in multi-storeyed residential apartment in Chengbei District and other regions. They also explain the risk of “one residence per household”: 1) risk of second-time relocation due to the trend of urban development planning in Xining City and the development of the surrounding area; 2) the organizer of second-time relocation might be City relocation department instead of the village committee; 3) households might be resettled in a scattered way, which will break up the original community; 4) resettlement site may be far from the original residence. After the first round publicity and negotiation, Wangjiazhai Village have known the opinions from Taobei Village, they also required the concentrated resettlement mode in multi-storeyed residential apartments. The village

committee promises to implement the construction of resettlement housing according to the basic construction procedures and accept the supervision from superior government and the public (see figure 6-5 and 6-6).

Figure 6-5 Commitment Letter of Wangjiazhai Figure 6-6 Commitment Letter of Taobei Village

The resettlement plan for affected villages is as follows: Taobei Village： The total resettlement area is 20mu, and the resettlement house is allocated as 50m2 per capita and 1 house per household. For demolished houses less than 50m2 per capita, the resettlement house can also be allocated as 50m2 per capita. For less than 10% of excessive area, it can be purchased at cost price, over than 10% of excessive area shall be purchased at market price. The model and house type adopt the mature house type of multi-storey residential apartment in Haihu New District, and the resettlement housing is built as commercial-residential building, i.e. 1st floor built for business use, allocated to the relocated households or treated as collective property, while the 2nd – 6th floors provided for the relocated households to choose and purchase. The “Three supplies and one leveling”, landscaping and road construction of the resettlement area shall be accounted by World Bank Project Office according to the government’s unified planning, and sharing expenses with displaced households is

prohibited. Apart from the cost expenses such as water meter, electricity meter and digital TV set-top box, it shall guarantee that the displaced households are not charged of installation and access fees of water, electricity and cable TV.

Fig.6-4 Multi-storey resettlement Fig. 6-2 Multi-storey resettlement apartment in Haihu New District (1) building in Haihu New District (2) Wangjiazhai: The total resettlement area is 15mu, and the resettlement house is allocated as 50m2 per capita and 1 house per household. For demolished houses less than 50m2 per capita, the resettlement house can also be allocated as 50m2 per capita. For less than 10% of excessive area, it can be purchased at cost price, over than 10% of excessive area shall be purchased at market price. The model and house type adopt the mature house type of multi-storey residential apartment in Haihu New District, and the resettlement housing is built as commercial-residential building, i.e. 1st floor built for business use, allocated to the relocated households or treated as collective property, while the 2nd – 6th floors provided for the displaced households to choose and purchase. The “Three supplies and one leveling”, landscaping and road construction of the resettlement area shall be accounted by World Bank Project Office according to the government’s unified planning, and sharing expenses with displaced households is prohibited. Apart from the cost expenses such as water meter, electricity meter and digital TV set-top box, it shall guarantee that the displaced households are not charged of installation and access fees of water, electricity and cable TV. Zuoshu Village: Although Zuoshu Village requires the resettlement mode of multi-storey house, they have to accept the “one residence per household” because of only five households affected by demolition. Project Office promises to coordinate Huangzhong County

government to help the village committee to deal with the relevant land procedures for the displaced households. They will build their resettlement houses on the idle land within the village. 6.3 Compensations for administrative or business office buildings, plants, and operating buildings

1) Administrative office building: The project involves the renovation of Wangjiazhai Village Committee and Xining No.1 Vocational-technical School. Wangjiazhai Village Committee will be compensated at renovation price, and be reconstructed in the resettlement location. Xining No.1 Vocational-technical School has a small area for demolition, which does not affect the normal education activities, and monetary compensation is provided according to the compensation standard after negotiation. 2) Enterprise office building and workshop: this project involves four enterprises including Huangzhong County, Xichuan Metal Product factory (steel mill), Duobarunbei cement factory, Jieling Material Recycling Company, and Xining City Xichuan Cement Tube Mill. Apart from Xining City Xichuan Cement Tube Mill, the other three plants were all out of operation, and have no intention to recover the operation. After negotiation, all the monetary compensations do not involve other compensations. 6.4 Resettlement of affected population

788.09mu of collective land is expropriated, including 534.45mu of arable land, and 253.64mu of non-arable land. It involves 481 households, and 1921 people. 8.45mu state-owned land is all for state-owned construction. According to the site survey, the location of the project is scarce of land resource. Before the land acquisition, area per capita her is less than 1mu. However, except for Taobei Village and Wangjiazhai, the rate of affected arable land is respectively 13.13% and 10.55%, other places all have a rate less than 8%. Therefore, this project does not exert significant impact on local agricultural production resources.

Table 6.1 Basic conditions of affected village Income per Expropriated Influence Place Household Population Arable land Labor capita land rate (%)

Wuzhong 603 2456 7347.26 2380 1602 126.86 5.33 Taobei 366 1815 10228 1652 1390 217 13.13 Dabaozi 685 2721 10821.7 2305 2409 61.76 2.68 Wangjiaz 183 795 9270.74 712 642 75.14 10.55 hai Sanqi 1321 4153 11466 1369 2400 18.38 1.34 Village Zuoshu 414 1700 7108 500 1200 35.31 7.06 Village

The impact of land acquisition on Taobei Village, Wuzhong Village, Sanqi Village, and Wangjiazhai is carried out. Among it, only 3 households in Taobei Village have over 80% of expropriated contracted land, taking up 1.89% of the total affected households; 9 households have 50%-79% of expropriated contracted land, a percentage of 5.66%; 31 households have 20%-49% of expropriated land, a percentage of 19.5%; others are less than 20%. In Sanqi Village, no household has over 65% of expropriated land; only 3 households have over 50% of expropriated land, taking up 15% of the total affected households; 12 households have 20%-49% of expropriated contracted land, a percentage of 60%; 5 households have less than 20% of expropriated contracted land. In Wangjiazhai, 4 households have over 80% of contracted land, taking up 3.88% of the total affected households; 2 households have 50%-79% of expropriated contracted land, a percentage of 1.94%; 17 households have 20%-49% of expropriated contracted land, a percentage of 16.5%; others are less than 20%. In Wuzhong Village, 7 households have over 80% of contracted land, taking up 9.46% of the total affected households; 8 households have 50%-79% of expropriated contracted land, a percentage of 10.81%; 16 households have 20%-49% of expropriated contracted land, a percentage of 21.2%; others are less than 20%. Statistics indicate that land acquisition reduces the total area of contracted land of the affected households, among whom some households have arable land less than 0.3mu per capita (See Table 6.2).

Table 6.2 Requisitioned Households with average arable land less than 0.3mu Householder Family population Village Guo Wanshi 11 Taobei Village Zhang Shengquan 8 Taobei Village Bao Youzhang 6 Taobei Village Wu Hongren 12 Taobei Village Li Shenghu 6 Taobei Village Li Shengying 7 Taobei Village Tao Xuechi 8 Taobei Village

Chen Zhiguo 8 Taobei Village Zhang Youfu 10 Taobei Village Guo Zhengyin 7 Taobei Village Ji Delong 1 Taobei Village Li Fuguo 2 Taobei Village Tang Shengman 4 Wangjiazhai Shang Yuzhong 7 Wangjiazhai Ding Yanjun 8 Wangjiazhai Si Quanyin 8 Wangjiazhai Ma Changtai 8 Wangjiazhai Ma Fenglan 6 Wangjiazhai Ding Yanping 4 Wangjiazhai Li Shengxiu 2 Wangjiazhai Wang Jinhua 4 Wangjiazhai Gou Tinghong 4 Wuzhong Village Gou Xuequan 6 Wuzhong Village Gou Changde 3 Wuzhong Village Gou Xuexian 5 Wuzhong Village Jia Guihua 2 Wuzhong Village Gou Ting’en 3 Wuzhong Village Gou Xuechang 6 Wuzhong Village Yang Wenyu 4 Wuzhong Village Gou Xuelin 6 Wuzhong Village Gou Xuehong 4 Wuzhong Village Gou Lianzhen 2 Wuzhong Village Gou Yongde 1 Wuzhong Village Gou Xuecheng 4 Wuzhong Village Yang Yingsheng 5 Sanqi Village Cao Changfang 5 Sanqi Village Yang Dewei 2 Sanqi Village Wei Fu 6 Sanqi Village Wang Zhanye 10 Sanqi Village Yang Qide 6 Sanqi Village Jing Zhanhua 6 Sanqi Village Li Shilian 6 Sanqi Village Zhou Xiulan 4 Sanqi Village Li Yonggui 4 Sanqi Village Zhang Yude 3 Sanqi Village 45 in total 244 in total

According to the Xining Land Resources Bureau’s notice of forwarding the Notice of the General Office of Qinghai Provincial Government on Forwarding the Interim Measures of the Department of Human Resources and Social Security and Other Departments concerning Social Endowment Insurance of the Land-Expropriated

Peasants (No.11 (2013) of Xining Land Resources Bureau), in terms of rural collective land uniformly expropriated by local land resources bureau, for registered peasant who has remaining arable land per capita less than 0.3mu, if they are above 16-years-old, with secondary land contract warrant and no basic social pension insurance for urban enterprise employees, they can participate the social pension insurance for land-expropriated peasants. The pension insurance fund for land-expropriated peasants shall be collected in certain proportion of the minimal living standard minimal living standard assurance, which includes personal payments, governmental allowance and village collective subsidies. Personal payments. Peasants who participate in the social pension insurance for land-expropriated peasants shall pay off 35% of pension insurances for 15 years based on the minimal living standard assurance of local urban residents. For new land-expropriated peasants (Reservoir migrants included), the payment can be deducted from their land compensations and resettlement subsidies after the verification by local government or organizations. Government subsidies. Local government of county level or above shall provide subsidies for land-expropriated peasant, which shall be 15% of the minimal living standard assurance of local urban residents. Local financial department can first choose to deduct the subsidies for 15 years from land grants. For the insured person eligible for pension, the government shall provide a monthly basic pension of 120 Yuan. Local government of county-level or above who implement land acquisition can reasonably enhance the standards of basic pension and payment grants of the land-expropriated peasants. Collective grants. If conditions allow, the village collective can provide payment grants to the insured persons, according to the standard democratically determined by Village Committee. The social pension insurance base for new land-expropriated peasants shall be timely adjusted to the changes of minimal living standard assurance of local urban residents. Peasants above 60 years old can receive pension monthly. It consists of basic pension and individual account pension. Basic pension is 120 Yuan; individual account pension is the accumulated amount of the savings in individual account divided by 139

(identical to the coefficient of individual account pension used in the present urban employees’ basic pension insurance). Since the policy was formulated at the beginning of this year, detailed rules for implementation are not yet formulated. Project Office promises to formulate these rules before or during the implementation of the project, so as to supervise the local government and the Village Committee to underwrite social pension insurances for the qualified land-requisitioned peasants. For land-expropriated households with arable land per capita larger than 0.3m, currently Xining City has no specified polices. However, the new rural social pension insurance can provide basic living assurance for rural labors when they are aged. Rural residents at or above 16 years old who do not participate in the basic pension insurance for enterprise employees can participate in the new rural social pension insurance in the place of domicile. Payment standards are set at five levels, which are respectively 100 Yuan/year, 200 Yuan/year, 300 Yuan/year, 400 Yuan/year, and 500 Yuan/year, and the five levels respectively get national grants of 35Yuan, 35Yuan, 40Yuan, 45Yuan, and 50Yuan. The new social pension includes basic pension and individual account pension and is provided for life. The basic pension specified by the provincial government is 55 Yuan/month for each person, totaling to 60 Yuan/month by adding 5 Yuan municipal fiscal subsidy. The individual account pension (monthly) is calculated from the amount of savings in individual account divided by 139 (identical to the coefficient of individual account pension used in the present urban employees’ basic pension insurance). Since the new rural social pension insurance system was adopted in 2011, the participation rate of pension insurance has reached 92% in Xining. Survey shows that most of the land-expropriated peasants are willing to use partial land compensation that is generated from the village collective land (land not contracted out) to purchase new rural social pension insurance or raise the insurance level to get more returns and more subsidy from government. Socio-economic survey shows that the major crops planted here are wheat and rape, usually one harvest each year. Generally, the peasants can get 400kg/mu wheat or 250kg/mu rape each year. So the gross income is about 1000-1200 Yuan/mu but the expenditure in fertilizer, pesticides, seeds, machinery and irrigation etc. is about 600 Yuan/mu. That means the earning is only 400-500 Yuan/mu per year regardless of the costs of labor. Presently, the labors at the surrounding area of Xining city can earn more,

for example, as temporary workers at construction sites, the unskilled labors can get 100-120 Yuan per day and the skilled labors can get 150-250 Yuan per day. That is to say the annual income of wheat per mu per year regardless of labor costs is equivalent to only 3-4 days’ incomes per labor by working outside. Therefore, many peasants have abandoned agricultural production and transferred or leased out the land to others as nursery stock base or vegetable greenhouses. For this reason, when the project office and resettlement consulting agency conducted the survey and consultation activity concerning the compensation and resettlement after land acquisition, almost all of the peasants wish their lands to be expropriated. During the survey process, the project office and resettlement consulting agency solicited the opinions of the land-expropriated households on the resettlement methods after land acquisition. Most of the villagers surveyed consent that the compensation for the contracted land shall be offered in full to the land-expropriated households and the compensation for collective land shall be offered to the village collective and the use of such compensation fund shall be decided through villagers meeting. But Taobei and Wangjiazhai Village Committees hold that the compensation for homesteads on which the houses are demolished can be used for construction of the resettlement buildings and if insufficient, the difference shall be made up with partial compensation fund for house demolition paid to the relocated households. During the course of survey and consultation, the majority of dislocated persons think that the local traffic will be greatly improved and there will be more job opportunities when the project starts. The project management office is commissioning a research and development institution to study the feasibility of COD development mode adopted upon the conclusion of this project and commits to leave a certain proportion of job positions for land-expropriated farmers. In the process of implementation, the project will employ local labor force and procure local building materials as far as possible. When the project is finished, local force will be considered first in jobs related to maintenance, sanitation, security and green-keeping. The Village Committee of Sanqi Village plans to take advantage of the construction of “the distributing center for plateau agricultural and sideline products” to develop their own economy and increase job opportunities and income for farmers depending on the wholesale market. The distributing center is the largest one under construction in Xining and it will replace the current Haihu New District Market. With the road construction,

the Taobei Village Committee plans to solve the issue concerning water supply and drainage as well as heating in winter and develop agritainment. At present, mainly due to the short supply of heating, agritainment is operated just from May to October and only three large-scale businesses keep running in winter. Non-agricultural placement will play an important role in the population resettlement. The project management office has contacted Xining Women’s Federation, Xining Jinyi Vocational Training School, Xining Dongyun Driving School, Huangzhong Agricultural Broadcasting School and Huangzhong Diving School for working out a further plan of pre-job training for women, vocational training for housekeeping services, house decoration, accounting, electrician, electric welder, motor vehicle driving, animal husbandry and veterinary and painter, etc. The training plan will further require the opinions from the displaced persons. Yanxiaocun public transit transfer junction and commercial network nearby will provide more job opportunity. Those information will be provided to the affected villagers by stages according to progress of the project implementation and resettlement work. 6.5 Resettlement and recovery for affected women and vulnerable group

In terms of the resettlement and recovery for women and vulnerable group affected by this project, the Project Office and the local government aims to provide all kinds of conveniences for the participation and development of women from the perspective of the long term regional development.

1) Provide pension insurance for land-expropriated peasants that cover women as soon as possible to safeguard the economic status of women;

2) Establish an open mechanism for post information on the compensation of land acquisition and relocation to guarantee that women acquire equal right of compensation and the right to know. It is a prerequisite to inform female family members about the signing of compensation agreement and the issuance of fund.

3) Establish a menu-like system of employee training to provide a package of services including enterprise’s demand of workers, professional training, and women’s choice of interest, so as to reduce blindness in women’s employment.

4) Give full play to women’s organizations such as the Women’s Federation,

Family Planning Association, etc so as to combine the development and opportunities for women with the activities of these organizations. In this way, it can attract and guide women to enjoy the opportunities brought by development. 6.6 Restoration measures of infrastructure and ground attachments

The infrastructure affected in this project includes water supply & drainage pipes, power facilities, country roads, irrigation channels, communication facilities and etc. The project office will have assessment on the affected infrastructure according to the replacement prices and provide reasonable compensation. The subsequent affairs will be taken charged by the respective competent authorities. The restoration measures of the affected infrastructure shall be planned and arranged in advance. In practices, according to the actual conditions of the sites, the restoration shall be performed safely, efficiently, timely and correctly to minimize the adverse effects to the surrounding residents. 6.7 Schedule of Resettlement and Rehabilitation

The civil works of this project is planned to be started in August 2013. The schedule for all resettlement activities is shown in Table 6-1.

Table 6.2 Schedule of resettlement activities

2012 2013 2014 2015 2016 activities 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Project office Establish resettlement office in towns Survey on land acquisition and relocation Initial consultation of resettlement schemes Draft of the resettlement action plan Complementary survey Revise the resettlement action plan Re-consultation of resettlement scheme Improve the resettlement scheme Approve the resettlement plan Begin to implement the

Internal monitoring External monitoring

7. Budget for and Management of Resettlement Funds

7.1 Composition of resettlement funds

Resettlement funds of this project mainly include: compensation costs for land acquisition, demolition and all kinds of attachments; other expenses related to resettlement; administrative expenses for resettlement; and contingency funds.

7.1.1 Compensation costs for land acquisition

Compensation costs for land acquisition cover compensations for land expropriation and various taxes that should be paid including land compensation fee, cultivated land occupancy tax, land administrative charge and other taxes and dues that should be withheld.

7.1.2 Compensation costs for demolition

Compensation costs for demolition includes: 1) Compensation fee for house demolition; 2) Relocation grants, transitional allowance and rewards; 3) Compensation fee for various attachments

7.1.3 Compensation costs for all kinds of attachments

Compensation costs for attachments on the land owned by private households or collective organizations will be calculated in accordance with the actual quantity obtained from the survey and the corresponding compensation standards.

7.1.4 Other expenses related to resettlement

Other expenses related to resettlement mainly refer to the costs occurred in the course of resettlement preparation and implementation, such as expenses for monitoring and evaluating the resettlement by the external monitoring organization and funds for engaging professional agencies to measure and evaluate the relocated objects during the process of land acquisition and relocation. These expenses will be determined as per the charging criteria in the industry or for similar projects.

7.1.5 Administrative expenses for resettlement

Administrative expenses for resettlement are calculated as per 2% of the direct resettlement funds. These expenses are mainly used for items related to the resettlement work including improvement of the agencies, organization and coordination, internal monitoring, independently external monitoring, official and foreign affairs reception, on-the-job trainings, incentives for relocation progress made by implementing units of the project, information collection and release, preparation at earlier stage, salaries and benefits for the personnel, purchase and use of vehicles, vehicle maintenance, communications and daily management, etc.

7.1.6 Contingency funds

There are two kinds of contingency funds: material and price (excluding expenses caused by temporary change of engineering design). And the two kinds of contingency funds are calculated as per 10% of the fundamental costs. 7.2 Budget for resettlement funds

Based on compensation standards and statistical quantity relevant to all kinds of affected items, the total cost of the resettlement related to the World Bank Funded Qinghai Xining Urban Transit Project amounts to 398571400.2 Yuan. See Table 7-1 for specific budget for the funds.

Table 7-1 Budget sheet for compensation to and resettlement of dislocated persons involved in the World Bank Funded Qinghai Xining Urban Transit Project

Compensation Total Percentag No. Item Unit standard (Yuan/ Physical Budget for e (%) unit) quantity costs (Yuan) Fundamental costs for the 1 Yuan 343706940.5 86.235 resettlement Compensation cost for permanent 1.1 Yuan 784.09 113440652 28.462 land acquisition 1.1.1 Cultivated land mu 92700 162.19 15035013 3.772 1.1.2 Nursery garden mu 126000 311.9 39299400 9.860 1.1.3 Greenhouse mu 130700 60.37 7890359 1.980 1.1.4 Homestead land mu 90000 72 6480000 1.626 1.1.5 land in other kinds of use mu 90000 140.54 12648600 3.173 1.1.6 Collective construction land mu 90000 32.64 2937600 0.737 Permanent occupancy of state-owned 1.1.7 mu 156000 8.46 1319760 0.331 land 1.1.8 Index of purchasing resettlement mu 386700 35 13534500 3.396

farmland Social insurance fee for Yuan/ 1.1.9 27000 529.46 14295420 3.587 land-expropriated peasants mu Service charge for land acquisition 1.2 3403219.56 0.854 (3% of land acquisition costs) 1.3 Land acquisition fee 22138844.3 5.555 Administrative charge for expropriated 1.3.1 Yuan 788.09 4537626.08 1.138 land (4% of land acquisition costs) Yuan/ 1.3.2 cultivated land occupancy tax 1333.33 534.45 712598.2185 0.179 mu Yuan/ 1.3.3 Cultivated land reclamation fee 3600 534.45 1924020 0.483 mu Charge for the paid use of newly Yuan/ 1.3.4 28000 534.45 14964600 3.755 added construction land mu Compensation for residential house 1.4 Yuan 144868.4 185333963.1 46.500 demolition 1.4.1 Frame structure M2 1230 588.415 723750.45 0.182 1.4.2 Brick-concrete structure M2 1124 140161.6 157541638.4 39.527 1.4.3 Brick-wood structure M2 1112 1982.84 2204918.08 0.553 1.4.4 Earth-wood structure M2 1035 254.96 263883.6 0.066 1.4.5 Earth-concrete structure M2 998 13.35 13323.3 0.003 1.4.6 Others M2 998 261.53 261006.9 0.065 1.4.6 Utility room (in rural areas) M2 600 1605.723 963432 0.242 Yuan/ 1.4.7 Transitional allowance month/ 4 144468.42 17336210.4 4.350 M2 House Transitional allowance for public 1.4.8 hold × 3484800 0.874 rental housing set × month Yuan/ 1.4.9 Relocation grants househ 1000 121 121000 0.030 old Yuan/ 1.4.10 Relocation rewards househ 20000 121 2420000 0.607 old Ten Compensation for non-residential thousa 1.5 5792.73 6867449.2 1.723 house demolition nd Yuan Yuan/ 1.5.1 Brick-concrete structure 1014 1052.93 1067671.02 0.268 M2 Yuan/ 1.5.2 Brick-wood structure 969 25.3 24515.7 0.006 M2 Yuan/ 1.5.3 Brick-concrete structure(state-owned) 1225 4714.5 5775262.5 1.449 M2 Compensation for attachments and 1.6 Yuan 9452528.5 2.372 fixtures on the land 1.6.1 Scattered flower and fruit trees (big) unit 90 95 8550 0.002 Scattered flower and fruit trees 1.6.2 unit 45 194 8730 0.002 (medium) 1.6.3 Scattered flower and fruit trees (small) unit 27 161 4347 0.001 1.6.4 Scattered plants (big) unit 54 144 7776 0.002 1.6.5 Scattered plants (medium) unit 45 274 12330 0.003 55

1.6.6 Scattered plants (small) unit 27 593 16011 0.004 1.6.8 All-wood door and door pocket set 860 118 101480 0.025 1.6.9 Paint-free door and door pocket set 720 116 83520 0.021 1.6.10 Various partitions M2 280 276.535 77429.8 0.019 1.6.11 Heatable ceramic tile bed M2 110 23.96 2635.6 0.001 1.6.12 Toilet M2 600 66.8 40080 0.010 1.6.13 Cement flooring M2 110 2867.447 315419.17 0.079 1.6.14 gate tower unit 2400 7 16800 0.004 1.6.15 brick wall M2 100 3500.432 350043.2 0.088 1.6.16 Anti-theft door unit 750 208 156000 0.039 1.6.17 Rails M 20 811.31 16226.2 0.004 1.6.18 Aluminum alloy window M2 205 1580.08 323916.4 0.081 1.6.19 Floor tile M2 80 14212.71 1137016.8 0.285 1.6.20 Aluminum alloy window (poor) M2 137 1786.82 244794.34 0.061 1.6.21 External facing brick M2 90 5882.478 529423.02 0.133 1.6.22 Power line M 3000000 0.753 1.6.23 Communication cable M 3000000 0.753 House 1.7 Grants to vulnerable populations 10000 14 140000 0.035 hold House evaluation fee (5‰ of the 1.8 total price of the houses and Yuan 1008269.704 0.253 accessories) Relocation cost for entrusted 1.9 houses(2‰ of the total costs for Yuan 1922014.123 0.482 demolition) Costs for land leveling (calculated in 2 accordance with 35% of the total M3 60 元/M3 150261.2 3163883.73 0.794 demolition area) Administrative costs(2% of the 3 Yuan 6874138.81 1.725 fundamental costs) Expenses for resettlement planning, 4 monitoring and assessment(1.5% of Yuan 5155604.107 1.294 the fundamental costs) Training cost (1% of the 5 Yuan 3437069.405 0.862 fundamental costs) Contingency funds (10% of the total 6 Yuan 36233763.65 9.091 costs) 7 Total investment Yuan 398571400.2 100.000 8 Percentage % 100

Notes1: The 500000 yuan cost for independently external monitoring is covered in “expenses for resettlement planning, monitoring and assessment” (tentative 5 years) and paid by the World Bank loan.

Notes2: The tomb relocation fee is paid in contingency fund. 7.3 Receiver and distribution of resettlement fund

7.3.1 Receiver of resettlement funds

The resettlement funds of this project will be allocated to different receivers in accordance with the ownership of different affected items. See Table 7-2 for detailed information. In order to make sure that the compensation funds can be given to affected persons and units in time and in full, we will give full play to the role of external monitoring organization, internal monitoring departments and state audit institutions as well as minimize intermediate links so as to distribute resettlement funds to individuals and units directly in simple and practicable manner.

Table 7-2 Receiver of resettlement funds

Receiver Category of the funds Village Compensation costs for collective land that has not been contracted, attachments collectives and facilities owned by the collectives, etc. Compensation costs for contracted land, house demolition, attachments, green Households crops (only for households whose green crops are to be expropriated), relocation costs, transitional allowance, etc. Other sectors Taxes and dues related to land acquisition

7.3.2 Source and flow of resettlement funds

Resettlement funds for the World Bank Funded Qinghai Xining Urban Transit Project are raised by the project management office. They will be allocated to receivers of the compensation via special accounts with no intermediary link so as to avoid retention and embezzlement.

7.4 Disbursement, management and monitoring of resettlement funds

7.4.1 Disbursement of resettlement funds

The disbursement of resettlement funds involved in this project will be done in light of the following principles:

 All costs relevant to land acquisition and relocation are counted into the project total estimated budget. Compensation costs for land acquisition and relocation involved in each subproject are audited by the implementing unit of it who shall report the costs to the project management office so as to apply for appropriation. The compensation funds are paid directly through special accounts to affected units and persons.  All kinds of compensations paid to individual households are granted to the

affected families via the special account of the resettlement office under the jurisdiction of the local government;  Land compensations shall be disbursed after the land has been expropriated.

7.4.2 Management and monitoring of resettlement funds

 The disbursement of resettlement funds shall be in strict accordance with state laws and regulations relevant to land acquisition and relocation as well as policies specified in the Resettlement Action Plan, the amount of which shall be consistent with what is specified in the assessment report and may not be lower than the compensation standards or smaller than the compensation scope defined in the Resettlement Action Plan.  Project implementing unit reports the monthly construction schedule to the project office every month, checks the disbursement statement and submits it with the signature of the principal personnel in charge of the project implementing unit to the financial section who will allocate the funds. The project management office disburses the progress payment according to the progress payment statement with the signature and approval of the project implementing unit and the financial department of the project management 58

office will deliver the funds directly to the receivers of compensations.  Compensation costs for land, houses and accessories, relocation costs and transitional allowance are verified by the project implementing unit.  The project management office engages a professional organization to conduct internal inspection on the utilization of resettlement funds.  Financial and audit departments of Xining City monitor and audit the utilization of special funds.  The external monitoring organization for the resettlement shall conduct specific tracking and monitoring about the payment of compensation funds to affected households and villages during the external monitoring process.

8 Resettlement Organizations

8.1 Organization setting

To effectively carry out the resettlement work of Xining Urban Transit Improvement Project, the governments at all levels in Xining start from the organization setting and capability improvement to guarantee the smooth going of the preparation and resettlement work of the project. Since October 2011, the Leading Group of Xining Urban Transit Project, the Xining World Bank Funded Project Construction Management Office (project office) and the resettlement agencies at all levels have been set up and their duties have been defined. The organizations related to resettlement work mainly include: ●Leading Group of Xining World Bank Funded Projects ●Xining World Bank Funded Project Construction Management Office (project office) ●Resettlement offices at all districts and counties ●Resettlement Working Group at the affected villages ●Resettlement consulting agency - Center for Involuntary Resettlement Research of China Three Gorges University See the chart of resettlement organizations in figure 8-1.

Figure 8-1 Resettlement Organizations of Xining Urban Transit Project

Leading Group of Xining World Bank Funded Projects

Xining Project Office Resettlement consulting agency

Resettlement Office Resettlement of Chengbei District Office of Huangzhong County

Villages and households affected by land acquisition and relocation

8.2 Responsibilities of the organizations

8.2.1 Leading Group of Xining World Bank Funded Projects

·Exercise leadership in project preparation and implementation in an overall way ·Decide major resettlement policies ·Coordinate relations between resettlement organizations and government organs

8.2.2 Xining World Bank Funded Project Construction Management Office (project office)

·Apply to related departments for the permits for land use planning and construction ·Coordinate related departments to formulate the policies in resettlement action plan ·Coordinate the progress of project construction and the implementation progress of resettlement action plan ·Coordinate the work of the resettlement organizations ·Offer training for the resettlement directors at all levels ·Report the implementation progress of resettlement work ·Coordinate and communicate with other departments during resettlement implementation process ·Examine the resettlement fund plan of all subprojects ·Offer guidance for and have supervision on the implementation of resettlement work of all subprojects ·Take charge of the management of resettlement documents and files ·Take charge of the internal monitoring of resettlement work ·Responsible for the reception work for the resettlement experts from World Bank during project preparation and implementation process ·Handle complaints and appeals from the displaced persons during resettlement process ·Communicate with external monitoring agency during resettlement implementation process

8.2.3 Resettlement offices at districts and counties

·Organize and conduct detailed resettlement survey ·Implement the resettlement work specifically ·Make out and report to higher organs the resettlement fund plan ·Track and urge the disbursement of resettlement funds ·Handle complaints and appeals from the displaced persons during resettlement process ·Provide assistance to the work of external monitoring agency ·Collect and sort out the materials required by internal monitoring report ·Submit resettlement archives to the project office ·Receive the inspection of World Bank resettlement experts together with the project office

8.2.4 External monitoring agency

During resettlement planning and implementation process, the external monitoring agency is responsible for the external monitoring of the resettlement work and submits resettlement progress report and monitoring report to the project office and World Bank. The details about its responsibilities are described in the chapter of “external monitoring”. 8.3 Staffing and Equipments of the resettlement organizations at all levels

The Environment and Resettlement Team of the Project Office takes charge of the resettlement work of this project, currently consisting of 4 persons, who have strong ability of organization and coordination and are proficient in computer and other work skills. The resettlement offices of Chengbei District and Huangzhong County are also composed of high-quality and experienced workers who are qualified enough for the resettlement work. See roster of staff in table 8-1. The conditions of staffing and equipments of the resettlement organizations at all levels are given in table 8-2 and 8-3.

Table 8-1 Roster of staff of the resettlement organizations at all levels Resettlement organizations Director Staff Municipal project office Wang Yong Li Weixin, Suo Nan Zha Xi,Zhang

Huanyong Resettlement office at Zhang Shengwen Li Junbang Huangzhong County Chengbei District Huang Xiangfu Suo Mingwei

Table 8-2 Staff arrangement of the resettlement organizations at all levels Resettlement Staff Qualification Period organizations Persons proficient in foreign language, Municipal project computer and engineering technology From February 2012 to the 4 office and familiar with environment and end of resettlement work resettlement policies Resettlement offices Education background above senior From February 2012 to the at districts and 4 high school, with experience of end of resettlement work counties engaging in similar work for long term

Table 8-3 Equipments at the resettlement organizations of all levels Organizations Computer Camera Working car Offices (m2) Project office 4 1 1 200 Resettlement offices at districts and 4 2 2 200 counties 8.4 Measures to improve the capability of the organizations

In order to improve the quality of the staff of the resettlement organizations at all levels, enhance the capability of the resettlement organizations, make the staff familiar with the laws and regulations concerning resettlement and know more about the demands of World Bank on involuntary resettlement, and guarantee the smooth going of the resettlement work, the project office has organized the staff for many times to learn from the domestic similar projects, learn about the procedures of the resettlement work in World Bank funded project and master involuntary resettlement policies. In addition, the project office also provides series of training to the staff on state laws and regulations concerning resettlement, World Bank Operational Policies OP4.12/BP4.12 on Involuntary Resettlement and resettlement work skills. See details about the training in table 8-4.

Table 8-4 Business training schedule for resettlement staff Training Training content Trainees Date No. provider A B C D Learn the resettlement work experience of the world bank 1 Project office Staff of project office February 2012 funded projects from other provinces 2 Project office Resettlement work procedures, Staff of project office March 2012

training on resettlement and survey Computer operation and data 3 Project office Staff of project office April 2012 processing Learn about resettlement 4 Project office regulations of the state and World Staff of project office May 2012 Bank operational policy Funds appropriation procedures 5 Project office and its management and Staff of project office May 2012 supervision Resettlement information 6 Project office Staff of project office June 2012 processing methods Staff of project office and Resettlement procedures and 7 Project office district & county resettlement June 2012 policies offices Staff of project office and Resettlement policies of World 8 Project office district & county resettlement July 2012 Bank offices Staff of project office and Latest policies about land 9 Project office district & county resettlement August 2012 acquisition and relocation in China offices Resettlement work experience of Staff of project office and December 10 Project office other World Bank funded projects district & county resettlement 2012 in China offices 8.5 Plan of further improving the capability of the organizations

To more effectively implement the Resettlement Action Plan, ensure the benefits of the affected population and meet with the overall project progress schedule, the project office will carry out the following measures to further enhance the capability of the organizations to improve the work efficiency. 1. Leaders responsibility system: major leaders in the project office will take the lead to constitute a strong resettlement leading team. 2. Staffing with high-quality workers: the staff of the resettlement organizations at all levels are required to have strong understanding of policies and professional ability, especially the work experiences among the masses. 3. Definition of responsibilities: define the duties and responsibilities of the resettlement organizations at all levels according to the demands of World Bank and related laws and regulations of the state. 4. Training of resettlement staff: have the resettlement staff trained on resettlement policy, information management or other aspects based on the actual conditions of the resettlement work. PMO will accept the ways of “going-out” and “bring in” to learn from and communicate with experienced organizations. 5. Exertion of the supervision from the masses and public opinions: publicize all

information concerning resettlement work to the masses and the social public, distribute resettlement information booklet, provide hot-line for consultation and complain from the affected to receive supervision from the masses and public opinions at any time. 6. Project office will irregularly hold resettlement briefings and inform the resettlement organizations at all levels in the form of briefing. 7. The project office shall equip the resettlement organizations at all levels with necessary vehicles and office facilities to meet the needs of their work. See the schedule of capability improvement and training in table 8-5.

Table 8-5 Future schedule of business training for resettlement organizations Training provider Training content Trainees Date No. A B C D Learn the resettlement work Staff of project office and 1 Project office experience from other World district & county resettlement 2013-2014 Bank funded projects offices Project office and Staff of project office and Resettlement policies of World 2 resettlement district & county resettlement February 2013 Bank consulting agency offices Project office and Latest changes of the policies Staff of project office and 3 resettlement about land acquisition and district & county resettlement March 2013 consulting agency relocation in China offices Draw lesions from the Staff of project office and 4 Project office resettlement work experience district & county resettlement April 2013 of other areas offices Staff of project office and Computer operation and data 5 Project office district & county resettlement May 2013 processing offices Resettlement procedures and Staff of district & county 6 Project office policies for World Bank funded resettlement offices and June 2013 projects village resettlement teams Staff of district & county Resettlement policies and 7 Project office resettlement offices and July 2013 practices village resettlement teams Explore international 8 Project office experience on resettlement Staff of project office 2013-2015 work

9. Public Participation and Consultation

To make the resettlement work of the World Bank Funded Qinghai Xining Urban Transit Project practical and reliable, safeguard the lawful rights and interests of relocated people and units, diminish dissatisfaction and disputes, project t office attaches great importance to the participation of and consultation with relocated people and prepares the Resettlement Action Plan on the basis of public consultation and transparency. During the decision-making process of the planning, design, and implementation of the project, the project office, relevant authorities in Chengbei District and Huangzhong County, and three affected towns, sub-street offices as well as six village committees widely publicize the information of this project by various means, solicit the opinions of affected people and consult with them about problems of common concern. The results of public participation and consultation provide reference for the improvement of the resettlement plan. 9.1 Basis of public consultation

9.1.1 Demands of domestic laws and regulations on public consultation with the displaced persons

Domestic laws and regulations on public consultation during the land acquisition and relocation and resettlement of displaced persons are as follows:

Table 9.1 Domestic laws, regulations and policies on public consultation during land acquisition and relocation and resettlement of displaced persons Type Policy Article Main content

Laws Constitution of Article 2, The people administer state affairs and manage the People’s Chapter I economic, cultural and social affairs through various Republic of channels and in various ways in accordance with the China (2004) law. Land Article14, Within the validity term of a contract, the adjustment Administration Article16, of land contracted by individual contractor should get Law of the Chapter II, the consent from the villager’s committee; disputes People’s Republic Article48, arising from the ownership or use right of land shall of China (1998) Chapter V be settled through consultation among parties concerned; Regulation on the Article10, The competent departments of land administration of Implementation Article25, municipal, county people's governments shall, upon of the Land Article26, approval of the general plan of land use and land Administration Chapter III, acquisition plan, organize its announcement. Funds Law of the Chapter V earmarked for land requisition resettlement subsidy People’s Republic must be used for the designated purpose and shall not of China (2003) be diverted to any other purpose. Municipal, county 66

Type Policy Article Main content

and village (township) people's governments should strengthen supervision over the use of resettlement subsidy. Organic Law of Aticle22, The decision made on the villagers’ assembly shall be the Villagers’ Article26, approved by more than half of the participants. Committees of Article28; Transparency of village affairs shall be implemented the People’s Article29, by the villagers’ committee. The administrative Republic of Article30, agencies shall take the initiative to disclose China (2010) Chapter V; government information. Article15, Chapter III Regulations Regulation of the Article9, Article9 Administrative agencies should disclose on People’s Article11 their own initiative government information that Republic of satisfies any one of the following basic criteria: China on the 1) Information that involves the vital interests of Disclosure of citizens, legal persons or other organizations; Government 2) Information that needs to be extensively known Information or participated in by the general public; (2008) 3) Information that shows the structure, function and working procedures of and other matters relating to the administrative agency; and 4) Other information that should be disclosed on the administrative agency’s own initiative according to laws, regulations and relevant state provisions. Article 11 The government information to be emphasized for disclosure by the people’s government at the level of cities divided into districts and the county level people’s governments and their departments should also include the following contents: (I)Important and major matters in urban and rural construction and management; (II)Information on the construction of social and public interest institutions; (III)Information on land requisition or land appropriation, household demolition and resettlement, and the distribution and use of compensation or subsidy funds relating thereto; and (IV)Information on the management, usage and distribution of social donations in funds and in kind for emergency and disaster relief, special care for families of martyrs and military service personnel, and assistance to poverty stricken and low income families. Regulations on Article3, Article 3 The people's governments at all levels and the Letters and Visits Article4, relevant departments of the people's governments at or Article5, above the county level shall effectively handle letters Decree of the Article12 and visits by conscientiously dealing with letters, State Council of receiving visitors, heeding people's comments, the People's suggestions and complaints and accepting their Republic of supervision, so that the people's interests are best China served; The work regarding letters and visits shall be done No. 431 under the leadership of the people's governments at all levels and in adherence to the principles of territorial

Type Policy Article Main content

jurisdiction, responsibilities assumed at different levels, the department in charge being the department responsible and combination of the need to solve problems lawfully, timely and locally with persuasion; Article 5 The people's governments at all levels and the relevant departments of the people's governments at or above the county level shall make policy decisions in a scientific and democratic manner, perform their duties according to law and prevent contradictions and disputes at source from leading to letters and visits; The department for letters and visits or any other relevant departments of the people's government at or above the county level shall, in a timely manner, input the complaint lodged by a letter-writer or visitor into the information system for letters and visits. The letter-writer or visitor may, on the strength of the complaint acceptance certificate issued by the administrative organ, go to the department for letters and visits or the reception place of the relevant department of the local people's government to inquire about the handling of the complaint. The maximum number of visitors shall be no more than five. Policy Notice of Article14, Perfect the land acquisition procedure. The land documents Decisions on Article15, expropriated rural collective economic organizations Furthering Chapter III shall timely disclose the income and expenses and Reform and allocation of land acquisition compensation for public Exerting Strict supervision. Land Management of the State Council (2004) Guiding Opinions Article11, Land acquisition hearings shall be organized; matters on Improving Article21 of land acquisition for approval shall be disclosed; Compensation villagers’ assembly shall be convened by the villagers’ and Resettlement committee. System for Land Acquisition (2004)

9.1.2 Policies of World Bank on public participation activity during involuntary resettlement process

In the World Bank Operational Policy OP4.12 on Involuntary Resettlement, public consultation during preparation and implementation of resettlement plan shall be given importance, including “shall conduct consultations conscientiously with displaced persons to entitle them to participate in the planning and implementation of resettlement plan”; ensure the displaced persons to “understand the technologically and economically feasible plans, participate the consultations and make selection”;

68 and “shall provide the displaced persons and their communities as well as the host communities which receive them with timely and relevant information, and consult with them about resettlement plan and provide with opportunities to participate the planning, implementation and supervision of the plan”. 9.2 Approaches, measures and procedures of public consultation

9.2.1 Participation approaches

Prior to the physical quantity and social and economic surveys of the project, the work outline has been compiled on the content, methods and requirements of the surveys, basing on the opinions from the local government. The survey team will include personnel dispatched from the local government. During the general survey, responsible persons from towns, villages and units and affected population shall participate the survey, and shall be informed with the project necessity, project benefit, project impact, compensation principles and resettlement progress, etc. as well as the consult about the potential resettlement destination of the displaced persons. During the planning of resettlement, the personnel of the resettlement plan shall consult with relevant authorities of the affected areas and towns, collect advice, demands and existing problems, and select the resettlement destination. During the field survey and selection of resettlement destination, the public and personnel from relevant authorities shall participate in the discussion of the resettlement plan. These consultations shall actively promote the smooth implementation of resettlement plan. According to the effectiveness and operability principle, displaced persons shall participate in activities in the following forms: 1) Focus group interviews Focus group interviews covering the overall population shall be organized in the affected villages. The interviewees shall include affected residents, the elderly, women and the disabled in certain proportion. 2) Structured questionnaire surveys The structured questionnaire surveys are designed according to the features of the preparation and designing of the project, obtaining the resettlement wishes of the affected persons and soliciting opinions and suggestions about the resettlement plan.

During the public consultation conducted in the middle of January, 2013, the questionnaire survey of resettlement wishes of relocated households in two villages and land-expropriated households in four villages was made. 3) Symposiums and individual interviews Various forms of symposiums and individual interviews shall be organized in accordance with the activities of public participation to collect relevant information.

9.2.2 Measures of participation and consultation

Symposiums and sampling survey of wishes of displaced persons are the main measures of public participation and consultation, with the aim of illustrating the purpose, content and importance of the project to the affected population and consult with them relevant matters on resettlement planning. Through these surveys, the results from the public participation and consultation shall be given sufficient consideration. Housing and resettlement plan of displaced persons and production resettlement shall comply with the wishes of displaced persons as much as possible based on the principles of the overall plan, achieving reasonable and satisfactory planning. During the implementation of the resettlement plan, symposiums and sampling surveys on wishes of displaced persons shall still be adopted to collect information and wishes of displaced persons and further improve the resettlement plan. Meanwhile, the public can express their complaints, opinions and suggestions to the community, village committees, resettlement departments of all levels and monitoring department. To ensure the displaced persons and local governments are fully informed of the detailed information of resettlement plan as well as the compensation and resettlement plan of the project, from the commencement to the implementation of the project, through public participation (such as symposiums) and local news media (such as TV and the Internet), etc. relevant national laws and regulations on migrants and current involuntary resettlement policies shall be illustrated in order to enable the displaced persons to understand the amount of physical indicators, calculation methods and compensation methods of compensation standards, resettlement measures, appropriation and usage of resettlement compensations and allowances, rights and preferential policies enjoyed by displaced persons, etc. In the meanwhile, information on displaced persons shall be disclosed to the villagers of the host communities to

70 inform them the situation of land acquisition, land compensation standards, fund usage, and conditions of displaced persons in host communities. The transparency of resettlement work shall be enhanced so as to earn support and trust for the project from the two parties and ensure the smooth implementation of the resettlement plan.

9.2.3 Public consultation process

Since June, 2012, with the assistance of the advisory consultants, Xining World Bank Funded Project Construction Management Office has conducted a series of social and economic surveys and public consultations. Public participation in large scale has been achieved during the physical indicator surveys. The detailed content of the public participation and consultation activities:  From June to July, 2012, Xining World Bank Funded Project Construction Management Office has for several times taken the lead to organize qualified appraisal organ and advisory organizations to conduct field surveys in affected areas, publicize basic information on the project, survey on the impact index of physical quantity of the project and know about the family, social and economic situation of the affected population.  While performing the social-economic surveys of displaced persons, the attitude and wishes of them towards the project shall be inquired. The results show that a majority of households support the project, believing the project will effectively improve the local transportation and living environment and facilitate the local economic growth, increase job opportunities and improve the income and living standard of the residents.  While performing the public consultation on resettlement plan, the compensation and resettlement wishes of the displaced persons have been inquired. Their attitude and opinions on the land acquisition and relocation mainly include: publicity and transparency of compensation and resettlement policies, fair and reasonable compensations, supervisions from all walks of the society; compensations based on relevant laws and regulations; improved production and living conditions through the resettlement.  During the preparation of the project, with the assistance of the Xining World Bank Funded Project Construction Management Office, the advisory organization has visited for several times government authorities including relevant government executive authorities and township sub-street offices for

solutions of problems (such as compensation standards, resettlement plans, and relevant policies) presented during the resettlement consultation of the project, and integrate the policies from various authorities, providing diversified policy support and measures for the resettlement. Mostly visited authorities include: Xining Land and Resources Bureau, Housing and Urban-rural Construction Agency, Bureau of Agriculture and Animal Husbandry of Chengbei District, Xining Municipal Ethnic and Religious Affairs Bureau, Xining Municipal Women’s Federation, Dabaozi Town Government, Xibao Town Government, Urban Construction Bureau of Huangzhong County, Land and Resources Bureau of Huangzhong County etc.  Participants on the symposiums held in affected villages include: advisory organizations, project management offices, relevant personnel of township government, village cadres, and representatives of displaced persons. During the symposiums, preliminary knowledge of the allocation plan of compensation funds, consultation about the measures and income recovery plan for the post-acquisition production and development, and consultation about the demolition and resettlement planning have been conducted. See Table 0-3 for the main activities during the project preparation. 9.3 Public consultation regarding the resettlement of dislocated people

During June to July in 2012 and January 8th to 18th in 2013, the Center for Involuntary Resettlement Research of China Three Gorges University has made a questionnaire survey to collect opinions and suggestions from the affected villagers in the form of public participation, held 7 symposiums with 4 villages, and conducted questionnaire inquiries and personal interviews with 150 affected people above 15 years old, under the assistance of the project management office and people’s governments at various levels in the affected area. The following are the major results: 1) Housing compensation standards Information obtained from the resettlement survey and public participation activities indicates that, as major construction projects involving land acquisition and relocation in Xining in recent years have made housing compensation and resettlement policies in accordance with the Notice of Xining Municipal Government

72 on Issuing Compensation Standards and Price Assessment Rules for House Demolition and Resettlement (No. 30 [2004] of Xining Municipal Government) which was released in 2004. Based on the document, the compensation standards for relocation usually take a reasonable rise with respect to the actual conditions. Meanwhile, the survey results have shown that most villagers know something about the current demolition and resettlement policies in Xining and they accept this policy. 2) Housing resettlement sites and methods According to the first public consultation of resettlement intentions, most villagers in Taobei Village tend to accept the multi-storey residential apartment resettlement method. However, most people in Wangjiazhai are against it, and they prefer homestead land method, of which each household is uniformly planned with one homestead land. Zuoshu Village only has 5 land-expropriated households, and they all choose the method of “one house per household”. One of the project area – Chengbei District has been included in the overall urban construction planning of Xicheng New District. According to the policies of Ministry of Land and Resources and the Xining City, for demolished houses on the collective land within the urban construction planning area, in principle homestead land will not be provided to the affected households. Instead, uniform reconstruction planning is adopted for their resettlement. In the recent years, all kinds of urban construction projects in Xining City basically adopt the method of concentrated resettlement in multi-storey residential apartment, and there are some successful cases. For instance, transformation of Chaoyang Village and Sitaizi Village due to the construction of building airport sightseeing corridor (Xining Section) provides experience for the concentrated resettlement in multi-storey residential apartment of this project. Therefore, before second time public consultation, after repeated consultation and exploration of the project office and the municipal bureau for urban planning, two resettlement sites are defined. Site 1 is located at a distance of 150 meters east to Taobei Village and on the north side of Western Expansion of Western Wusi Road. It is prepared to build two multi-storeyed commercial-residential buildings here for resettlement of house-demolished households in Taobei Village. Site 2 is located at a distance of 200 meters south to Wangjiazhai Village and on the east side of Xicheng Avenue. It is prepared to build one multi-storeyed commercial-residential building here for resettlement of house-demolished households in Wangjiazhai Village (See Figure 1, Appendix 2). The resettlement location is near to the original residence of 73 the households, and is fully equipped with public facilities such as plumbing and winter heating. It makes the life convenient and with higher quality, and minimizes the negative effect on the social relations, living habits of the effected families. The focus of second time public consultation is the Wangjiazhai Village. The Project Office, Chengbei District government and resettlement consulting agency illustrate the advantages of multi-storeyed residential apartment resettlement: 1) complete public facilities and better living environment; 2) it is organized by the Village Committee which the villagers are familiar with and trust; 3) concentrated resettlement does not affect neighborhood relations; 4) specific place for agricultural implements and warehousing; 5) successful cases of concentrated resettlement in multi-storeyed residential apartment in Chengbei District and other regions. They also explain the risk of “one house per household”: 1) risk of second-time relocation due to the trend of urban development planning in Xining City and the development in the surrounding area; 2) organizer of second-time relocation might be City relocation department instead of the village committee; 3) households might be resettled in a scattered way, which will break up the original community; 4) resettlement location may be far from the original residence. After publicity and negotiations, Wangjiazhai Village accepted the method of concentrated resettlement in multi-storeyed residential apartment. The village committee promises to implement the construction of resettlement housing according to the basic construction procedures and accept the supervision of upper government and the public. 3) Participation in the utilization and management of land compensation costs Most respondents agree with the policy on the use of compensation funds for land acquisition: land compensation costs of contracted land should be directly issued to household contractor in form of bankbook or bank card by district or county resettlement office; the compensation for collectively-owned land should be owned by the village and its usage should be decided through discussions at the village assembly. They agree that the village committee of Taobei Village and Wangjiazhai Village can pool homestead land compensation funds as set-up fees for constructing resettlement housing, and charge the relocated households with some of the household demolition compensation fees to make up for the shortage. 4) Participation in project construction As the project construction will more or less affect the place in question, public participation is encouraged in the project construction to make people who are 74 affected by the project obtain benefits from the construction and provide the place in question with advantages in selling materials and labor service. The survey shows that the majority of the affected people support those measures. In addition to the above general conclusions, public consultation in different villages has their own features and requirements.

Taobei Village

Table 9.3 Summary table for public opinions and suggestions from Taobei Village Content of the survey Options for questions Respondent percentage (%) I. How much do you know about the construction of the project? Very much. 63.25 A little, but not very clear. 35.29 Nothing. 1.47 II. Are you in favor of the construction of this project? Yes. 93.94 No. 1.52 Don’t care. 4.55 III. Potential advantages related to 0.00 the construction of this project (multiple choice) More convenient traffic 79.41 Income increase 76.47 More job opportunities 72.06 More market information 66.18 Other benefits 26.47 IV. Potential disadvantages related to the construction of this project (multiple choice) Loss of living resources for the old age due 72.06 to land requisition Negative impacts on the environment 4.41 Decrease in living space 48.53 Increase in living costs 47.06 Inadaption to the life after relocation 8.82 V. How much do you know about the compensation policies regarding land acquisition or relocation in Xining City? Very much. 22.06 A little, but not very clear. 66.17 Nothing. 11.76

VI. Opinions and suggestions on land acquisition and relocation involved in this project (multiple choice) Acquiring land and demolishing houses as 79.41 intact as possible Shortening the transitional period 75.76 Employing local labor force as much as 63.23 possible Using local building materials as much as 16.18 possible A fair process for selecting resettlement 70.59 houses Open and transparent distribution of funds 75.00 VII. Requirements related to the utilization of land compensation costs (multiple choice) To pay for old-age security 7.35 The majority of the compensation should 21.21 be given to the affected households directly and the remaining part should be used collectively. To develop a collectively-owned enterprise 29.41 To create collective welfare undertakings 33.82 Conducting job trainings for labor forces 35.29

Providing job opportunities irrelevant to 42.65 agriculture work VIII. Wishes concerning the resettlement after house demolition Centralized resettlement in the new village 92.98 under unified planning Rebuilding houses by themselves on the 7.01 homestead land Monetary compensation and solving the 0 housing problem by themselves

The analysis of the statistical date in Table 9.3 shows the following features:

First, 63.25% of the respondents know much about the construction of the western expansion of Western Wusi Road, 35.29% know a little and only 1.47% know nothing. This shows that the project has gained a high level of publicity among the affected population through public participation activities that have been conducted. Corresponding to this result, about 93.34% of the affected population support the road construction, only 4.55% are indifferent to the project and 1.52% are not in favor of it. The investigation data coincides with the impression and feelings gained during the

76 course of resettlement and socio-economic survey. On the whole, the road construction project has received much support in the affected area and most villagers have great expectations on it. Second, with respect to the impacts of the project, most people think that the road development will make traffic more convenient and increase job opportunities and related information so that they can have more options on work and earn more income. Meanwhile, the respondents concern much about the issue related to the livelihood after the land is expropriated, especially the problem about old-age security. In symposiums and personal interviews, many villagers have shown excitement and expectations about the road construction, but they also feel insecure about their future life, worrying about issues including the disbursement of compensation funds, transparency of the resettlement housing allocation process, the storage of means of production like agricultural implements in the future resettlement neighborhood, and the increase of living costs. Third, 22.06% of respondents are very clear about land acquisition and relocation policies in Xining and the percentage is the highest among the four villages where symposiums have been conducted. Corresponding to this, 11.76% know nothing about relevant resettlement policies and the percentage is low. In this project, it is reasonable that affected population in Taobei Village concerns about relevant policies because Taobei Village suffers the largest area of land acquisition and relocation. With respect to the utilization method of land compensation funds after land expropriation, there is no remarkable peak value of the percentages though a number of people choose providing job opportunities irrelevant to agricultural work, conducting job trainings for labor forces and creating collective welfare undertakings. Fourth, with respect to the housing resettlement methods, 92.98% of the respondents hope to choose the method of centralized resettlement in the new village under unified planning. This shows that the majority of people agree with the current resettlement method of building houses together under unified planning practiced in Xining. The minority of people reject this resettlement method because of the concern about the storage of agricultural machinery. Wangjiazhai Village

Table 9.4 Summary table for public opinions and suggestions from Wangjiazhai Village Content of the survey Options for questions Respondent percentage (%) I. How much do you know about the construction of the project? Very much. 26.42 A little, but not very clear. 64.15 Nothing. 9.43 II. Are you in favor of the construction of this project? Yes. 100.00 No. 0 Don’t care. 0 III. Potential advantages related to 0.00 the construction of this project (multiple choice) More convenient traffic 92.45 Income increase 39.62 More job opportunities 22.64 More market information 9.43 Other benefits 1.89 IV. Potential disadvantages related to the construction of this project (multiple choice) Loss of living resources for the old 86.79 age due to land requisition Negative impacts on the environment 5.66 Decrease in living space 56.60 Increase in living costs 45.28 Inadaption to the life after relocation 22.64 V. How much do you know about the compensation policies regarding land acquisition or relocation in Xining City? Very much. 3.77 A little, but not very clear. 79.25 Nothing. 15.09 VI. Opinions and suggestions on land acquisition and relocation involved in this project (multiple choice) Acquiring land and demolishing 84.91 houses as intact as possible Shortening the transitional period 58.49 Employing local labor force as much 33.96 as possible Using local building materials as 20.75 much as possible

A fair process for selecting 52.83 resettlement houses Open and transparent distribution of 67.92 funds VII. Requirements related to the utilization of land compensation fees (multiple choice) To pay for old-age security 79.25 The majority of the compensation 15.09 should be given to the affected households directly and the remaining part should be used collectively. To develop a collectively-owned 5.66 enterprise To create collective welfare 13.2 undertakings Conducting job trainings for labor 33.96 forces Providing job opportunities 26.42 irrelevant to agriculture work VIII. Wishes concerning the resettlement after house demolition Centralized resettlement in the new 70.00 village under unified planning Rebuilding houses by themselves on 30.19 the homestead land Monetary compensation and solving 0 the housing problem by themselves

First, compared with Taobei Village, the percentage of people who have clear knowledge about the project falls sharply, but it is still higher than those of the rest two villages (Dabaozi Village and Wuzhong Village); and the percentage of people who know a little but not very clear about the project rises markedly. It shows that in the future work various channels and methods should be used better to promote the affected population’s understanding about the project. Anyway, no one objects to the road construction. Second, with respect to the potential impacts of the project, 92.45% of people value most the traffic convenience brought by road construction, and this percentage is significantly higher than those of the other three villages. Among the four villages,

Wangjiazhai Village lies in a most disadvantaged geographical area, whose communications with outside totally depend on a rural highway with broken ends. Compared with Taobei Village, it is at an obviously inferior position as to the distance

79 from the town and working place (see Table 9.6). Disadvantages in geographical location have severely affected the economic development of Wangjiazhai Village. For instance, there is no restaurant and store in the village. From interviews, we learn that both the villagers and cadres have very clear idea about such situation and strongly hope the road construction can utterly change the inconvenient traffic, improve the economic development and increase income.

Table 9.6 Living conditions of dislocated and affected households Living condition Taobei Village Wangjiazhai Village Distance from medical institutions (km) 1.2 3.04 Distance from the primary school (km) 2.17 3.03 Distance from the high school (km) 4.5 2.87 Distance from the town (km) 2.17 6.13 Distance from the working place (km) 1 9.6 Distance from the contracted land (km) 1 0.97

Because of low economic development level and lack of experience in land requisition and demolition in the past, the respondents have more concerns than other villages. Besides worrying about issues related to long-term livelihood security after the land expropriation, they also concern about the decrease in living area, the increase in living costs and inadaption to the life after relocation, which show high percentages than other villages. Third, only 3.77% of respondents know very much about the land requisition and demolition policies, which is a relatively low percentage. About 79.25% have some knowledge about those relevant policies though they do not fully understand them.

15.09% know nothing about policies relevant to resettlement of dislocated people and this percentage is also a little higher. Such pattern is likely to be relevant to the fact that Wangjiazhai Village has never experienced land requisition and demolition before. With respect to the multiple choices related to the utilization of land compensation after land expropriation, 79.25% of the respondents propose to use compensation funds for the expropriated land to buy endowment insurances so as to dispel the worry about elderly life. In addition, more than 33% of respondents support providing job trainings for labor forces after land acquisition.

Fourth, as for the house resettlement method, 70% of the people prefer collective resettlement by uniform planning and only 30.19% of the people choose the method of constructing houses by themselves on allocated homestead (see Table 9.5).

Dabaozi Village

Table 9.8 Summary table for public opinions and suggestions from Dabaozi Village Content of the survey Options for questions Respondent percentage (%) I. How much do you know about the construction of the project? Very much. 18.18 A little, but not very clear. 81.82 Nothing. 0 II. Are you in favor of the construction of this project? Yes. 81.82 No. 0 Don’t care. 18.18 III. Potential advantages related to the construction of this project (multiple choice) More convenient traffic 81.82 Income increase 54.55 More job opportunities 45.45 More market information 45.45 Other benefits 9.09 IV. Potential disadvantages related to the construction of this project (multiple choice) Loss of living resources for the old age 72.73 due to land requisition Negative impacts on the environment 0 Decrease in living space 9.09 Increase in living costs 45.45 Inadaption to the life after relocation 9.09 V. How much do you know about the compensation policies regarding land acquisition or relocation in Xining City? Very much. 9.09 A little, but not very clear. 81.82 Nothing. 9.09 VI. Opinions and suggestions on land acquisition and relocation involved in this project (multiple choice) 81

Acquiring land and demolishing houses 45.45 as intact as possible Shortening the transitional period 0 Employing local labor force as much as 9.09 possible Using local building materials as much 9.09 as possible A fair process for selecting resettlement 9.09 houses Open and transparent distribution of 72.73 funds VII. Requirements related to the utilization of land compensation fees (multiple choice) To pay for old-age security 63.64 The majority of the compensation 36.36 should be given to the affected households directly and the remaining part should be used collectively. To develop a collectively-owned 9.09 enterprise To create collective welfare 9.09 undertakings Conducting job trainings for labor forces 9.09

Providing job opportunities irrelevant to 18.18 agriculture work Notes: one respondent who requires that the compensation be paid to the farm household directly was counted in the group who choose “the majority of the compensation should be given to the affected households directly and the remaining part should be used collectively”.

Dabaozi Village suffers only land expropriation and no demolition. The survey results show the following features: First, although the majority of villagers in Dabaozi Village support the road construction (81.82%), the percentage of people who are indifferent to the project reaches 18.18%, which is far higher than that of other villages. This is because the road construction has small effect on the geographic condition of Dabaozi Village which is located close to Qaidam Road with convenient traffic in addition to the fact that the western expansion of Western Wuxi Road is south to the Qaidam Road. Second, although all the respondents have heard of the project, the percentage of people who have a clear knowledge is not high (18.18%), which is just higher than that of Wuzhong Village (15.78%). This is because the cultivated land of Dabaozi Village mainly lies in the north side of Qaidam Road and they don’t have much concern about the land to be expropriated for the construction of western expansion of Western Wusi Road as that lot has already been contracted out to develop agritourism. From interviews, we learn that many people have not visited the land for a long time

82 and they just care about when they can receive the compensation. Third, people in this village know more or less about the policies concerning land acquisition and relocation in Xining as they have experienced land expropriation before. Their percentage exceeds 90% (respondents who know “very much” and “a little but not very clear”), which is the highest among four villages under investigation. And the percentage of people who know nothing is also the lowest.

Wuzhong Village

Table 9.9 Summary table for public opinions and suggestions from Wuzhong Village Content of the survey Options for questions Respondent percentage (%) I. How much do you know about the construction of the project? Very much. 15.78 A little, but not very clear. 57.89 Nothing. 26.31 II. Are you in favor of the construction of this project? Yes. 68.42 No. 26.31 Don’t care. 5.26 III. Potential advantages related to the construction of this project (multiple choice) More convenient traffic 73.68 Income increase 10.53 More job opportunities 10.53 More market information 15.79 Other benefits 5.26 IV. Potential disadvantages related to the construction of this project (multiple choice) Loss of living resources for the old age 100 due to land requisition Negative impacts on the environment 21.05 Decrease in living space 0 Increase in living costs 21.05 Inadaption to the life after relocation 10.53 V. How much do you know about the compensation policies regarding land acquisition or relocation in Xining City? Very much. 0 A little, but not very clear. 31.59

Nothing. 68.42 VI. Opinions and suggestions on land acquisition and relocation involved in this project (multiple choice) Acquiring land and demolishing 21.05 houses as intact as possible Shortening the transitional period 10.53 Employing local labor force as much 15.79 as possible Using local building materials as much 0 as possible A fair process for selecting 10.53 resettlement houses Open and transparent distribution of 89.47 funds VII. Requirements related to the utilization of land compensation fees (multiple choice) To pay for old-age security 47.37 The majority of the compensation 31.57 should be given to the affected households directly and the remaining part should be used collectively. To develop a collectively-owned 0 enterprise To create collective welfare 0 undertakings Conducting job trainings for labor 0 forces Providing job opportunities irrelevant 36.84 to agriculture work Notes: 5 respondents who require that the compensation be paid to the farm household directly were counted in the group who choose “the majority of the compensation should be given to the affected households directly and the remaining part should be used collectively”.

Results of the survey on Wuzhong Village show the following features: First, although most people know and support the construction of this project, the percentage of people who know nothing about or even object to this project is far higher than those of other villages. Second, there is no respondent who knows very much about policies related to land acquisition and relocation in Xining, and a small number of people know “a little but not very much” (31.59%) and most people know nothing (68.42%). Third, with respect to Question VI “Opinions and suggestions on land acquisition and relocation involved in this project”, 89.47% of respondents choose “open and transparent distribution of funds”, and the percentage is the highest among the four villages. Considering the fact that Wuzhong Village has experienced house demolition before, such a result is unexpected. Therefore, in the future work various channels and

84 methods should be used better to help affected population in Wuzhong Village increase their knowledge about the project and policies related to land acquisition and relocation in Xining as well as make the distribution of funds more transparent. 9.4 Feedbacks on opinions collected through public participation and consultation

During the period from January to March in 2013, the project management office and Center for Involuntary Resettlement Research of China Three Gorges University have summed up comments and suggestions collected from affected population through various channels of public participation, fed back their major concerns to the design institute, environmental impact assessment agencies and relevant departments, and taken those opinions and suggestions into consideration when working out the Resettlement Action Plan. Table 0-4 shows the feedbacks to the opinions collected through public participation and consultation.

Fig. 9-1 Public consultation in Taobei Village Fig. 9-2 Public consultation in Wangjiazhai Village 9.5 Further plan for the consultation with the affected population

With the advancement of the preparation and implementation work of the project, the project management office and resettlement offices at various levels will conduct further consultation with regard to the following major items:  specific comments from the affected population on compensation policies relevant to land acquisition and relocation;  compensations to dislocated households and the relevant disbursement schedule;  the construction situation of resettlement sites;

 issues that are likely to arise during the transitional period;  and other concerns of the affected population. See Table 9.11 for the timetable for further consultation between resettlement offices at different levels and affected population. Grassroots in relevant districts, counties and affected areas can call on consultative meetings on an irregular basis as to issues that need negotiating and reflect the situation to the project management office with reports. The monitoring section shall independently consult with the affected population and collect their complaints and proposals regarding other monitoring issues in addition to participating in consultation meetings organized by the project management office, so as to provide monitoring information to resettlement departments at different levels.

Table 9.11 Timetable for consultation with affected population

Content of the consultation Time Schedule Organizations and personnel involved Compensation policies for February to March Project management office, personnel land acquisition and in 2013 from district and county resettlement relocation agencies, and the external monitoring organization Resettlement methods and March to June in Project management office, personnel specific implementation 2013 from district and county resettlement plan agencies, the design department and the external monitoring organization Rehabilitation of affected Whole process of Project management office, personnel infrastructure project from district and county resettlement implementation agencies, and the external monitoring organization Issues occurring in the Whole process of Resettlement offices at all levels and the process of project project external monitoring organization implementation implementation Collection on suggestions Whole process of Monitoring departments, project and complaints project management office, and personnel from implementation district and county resettlement agencies

9.6 Ways for affected population to participate in consultation during the implementation process

1) The direct way Symposiums shall be held with representatives of affected people or village cadres, so as to collect the major concerns and opinions of the affected people and 86 solicit advice from the township governments, communities and village committees. 2) The indirect way The public can express their complaints, opinions and suggestions to village committees, resettlement departments at different levels and the monitoring department, and resettlement offices should feedback relevant solutions in accordance with the specific handling procedures. 9.7 Transparency of resettlement policies and the Resettlement Information Booklet

In order to help all the affected population gain timely and adequate information on policies and implementation details about the resettlement related to this project and make the resettlement work open, fair and transparent, resettlement agencies at different levels will adopt the following measures to guarantee the transparency of resettlement policies:  Before__ (month) __ (date), 2013, resettlement policies and standards related to this project shall be released publicly in media including Xining Daily and government websites;  Information covering the affected situation of the community, compensation standards, resettlement measures and grievance procedures shall be disclosed at the site of the relevant affected village committee or in some other public places;  Before __ (month) __ (date), 2013, copies of the Resettlement Action Plan shall be distributed at sites of affected village committees or in other public places so that the affected population can refer to them at any time;  The Resettlement Information Booklet shall be delivered to every affected household before the start of the work of land requisition and demolition. The Resettlement Information Booklet shall cover in detail the content of the affected status of each affected household, resettlement policies and compensation standards applicable to this project, implementing schedule of the project and procedures for the solutions to complaints and grievances from the affected population. It will be delivered to the hands of the affected population before the official start of the project, and its format is shown in the Appendix.

10. Complaints and Appeals

The resettlement work is very complex due to the extensive scope the land acquisition and the relocation cover and the involvement of vital interests of dislocated people. Therefore, affected people may inevitably have some opinions or complaints and grievances about the resettlement and compensation during the practical implementation course. In order to obtain rapid and satisfactory solutions to issues concerning the complaints of affected populations, the project management office shall establish a set of transparent, simple and feasible procedures for collecting and handling complaints and grievances, so as to address those issues objectively, impartially and efficiently as well as guarantee the smooth running of the resettlement work. 10.1 Means of collecting complaints and grievances

1) Through reports from village committees or district or county resettlement offices, which cover people’s complaints, schedules, measures and existing problems; 2) Through construction logs the builder faxes to the project owner every day, in which the builder can reflect the impact of people on the construction process; 3) Through coordination issues related to the relocation spotted by the project owner when inspecting the construction site; 4) Through relevant information reflected by the external monitoring organization; 5) Through correspondences, calls and visits from the affected people; 6) Through reports from work stations—the resident agencies of the project owner; 7) Through issues relevant to the resettlement reflected in the inspections conducted by the auditing and discipline inspection departments; 8) Through disbursement of relocation costs recorded in the fund allocation statement of the account in the bank; 9) Through special investigation of internal monitoring. 10.2 Complaint and grievance procedures

 Stage 1 The affected people can express their complaints orally or in writing to the village or community resettlement offices. In case of oral complaints, the village or 88 community resettlement office must record them in written form and make clear replies in two weeks. In case of severe matters concerned which need the instruction from the superior resettlement office, they must try to get replies from the superior resettlement offices in two weeks.  Stage 2 In case that the replies at Stage 1 are not satisfactory, the complainants can appeal to Xining Project Management Office within one month after receiving the replies at Stage 1. And Xining Project Management Office must make decisions about how to handle the complaints in three weeks.  Stage 3 In case that the replies at Stage 2 are still not satisfactory, affected people can appeal to the civil court within 15 days after receiving the replies at Stage 2. 10.3 Principles for handling complaints

Resettlement offices at all levels must conduct field investigations related to complaints from the affected people, fully solicit their opinions, consult with them repeatedly and patiently, and propose handling measures objectively and fairly in light with various principles and standards stipulated in the state laws and regulations as well as the Resettlement Action Plan. With regard to complaints which they are not capable of addressing, they shall report them to the superior resettlement agencies and provide assistance in investigations. In case that the decision-making agency at the previous stage fails to make replies to the appeals within the specified time, complainants have the right to appeal to the superior organization. During the course of resettlement, the project management office requires resettlement offices at all levels to employ at least one female personnel to handle complaints from women who may have their special concerns and grievances. In addition, the resettlement work will also be supervised by local governments and non-government organizations including the Bureau of Civil Affairs and Women’s Federation so as to safeguard the rights and interests of the affected people with women in particular.

10.4 Content and means of reply to complaints

10.4.1 Content of reply

 Brief description of the complaints;  Survey results;  Relevant state provisions as well as principles and standards of the Resettlement Action Plan;  Solutions and its specific basis;  Complainants have the right to appeal to the superior resettlement organization and the civil court, and relevant legal costs shall be paid by the project unit.

10.4.2 Means of reply to complaints

 For individual complaints, replies will be sent directly to complainants in written form.  For some complaints frequently heard, replies will be sent to the communities where the complainants live via holding a village assembly or in the form of document. Reply documents must be sent to the resettlement organizations that the complainants belong to regardless of the reply means. 10.5 Records of and feedbacks on complaints and appeals

During the implementation of the resettlement action plan, resettlement offices should record and manage the information concerning complaints and their solutions, and submit such information in written form to the project management office every month. And the project management office will conduct regular inspections on relevant records. In order to keep an intact record of the complaints from affected population and solutions to relevant issues, the project management office has worked out the registration form to record complaints and appeals. See Table 10-1 for the specific format.

Table 10-1 Complaint and appeal registration form relevant to the resettlement Receiving Time: Location: organization: Name of the Content of the Proposed Practical situation Required solutions complainant complaints solutions of handling

Complainant Recorder

(signature) (signature) Notes: 1. The recorder should record the complaints and requirements of the complainant faithfully. 2. The process of appeal should not be disturbed and interfered by anything. 3. The complainant should be informed of the proposed solutions within the stipulated time.

The main content of this chapter will be issued to the affected populations of this project publicly and delivered to every affected household in the form of open publicity material before the resettlement implementation starts. 10.6 Contact information for the channels to express complaints and appeals

The project management office will arrange special personnel in charge of collecting complaints and grievances from affected people. See Table 10-2 for names of the personnel in charge as well as the phone numbers and addresses of the resettlement offices.

Table 10-2 Information of organizations and personnel that receive complaints and grievances from affected population

Resettlement agencies Contacts Address Telephone number

Project management office Wang Yong 13 Wusi Avenue, Xining Resettlement office in Dabaozi Town Government, Suo Mingwei Chengbei District Chengbei District Resettlement office in Zhang Land and Resources Bureau of

Huangzhong County Shengwen Huangzhong County

11. Resettlement Monitoring

11.1 Internal monitoring

11.1.1 Purposes of internal monitoring

Internal monitoring is continuously conducted by project management office and resettlement organizations to internally monitor the implementation of the Resettlement Action Plan by top-down management system, aiming at grasping the progress of resettlement comprehensively, timely and accurately, finding and solving problems and providing decisive evidences for the smooth running of resettlement. The purposes of internal monitoring are: to standardize and guide the internal monitoring work of those organizations related to the resettlement activities, including project management office and resettlement organizations of this World Bank financed project; make sure the resettlement work is strictly in accordance with the Resettlement Action Plan; make sure monitoring and evaluation activities are conducted orderly and efficiently in compliance with related standards so that related parties can be informed promptly the status of resettlement as well as find and correct the problems during the resettlement. The principles of internal monitoring are: to investigate, understand and evaluate the implementation of Resettlement Action Plan on a regular basis; to conduct data collection and analysis accurately in order to guarantee the accurateness of monitoring results; to appraise the implementation of Resettlement Action Plan in a scientific, objective and impartial manner; and to timely report to the project management office and the World Bank the development of the project so that they can make scientific decisions. The functions of internal monitoring which is an important part of internal project management are to learn the status of resettlement implementation, collect, analyze and share data and information relevant to the progress, fund and quality of resettlement activities through creating and using the resettlement information management system, so as to discover existing or potential problems, look into the causes and propose suggestions and measures on solving the problems. Internal monitoring of the resettlement activities is conducted by the project management office and resettlement organizations, and the project owners are

92 required to submit internal monitoring reports to the World Bank regularly.

11.1.2 Implementing process of internal monitoring

The internal monitoring can be divided into two phases: the preparatory phase and the implementing phase. The preparatory phase starts from the project identification period in the cycle of the World Bank Financed Project, going through project preparation, pre-evaluation and evaluation and ends at the project approval period. The implementing phase starts from the implementation of resettlement and ends at the fulfillment of the goal of resettlement. 1) Preparatory phase of internal monitoring Project management office and local government establish a resettlement organization at the early stage of project preparation. Project management office sets up a specialized agency within itself to take charge of the resettlement work. With capable employees to handle the resettlement work, the agency under the project management office can guarantee the completeness and objectiveness of information and data it provides as well as help organizations in other fields take part in the resettlement work. Internal monitoring and evaluation should start during the project preparation. Preparatory work of project management office includes: —organizing trainings for the personnel working in the project management office and resettlement implementing organizations at all levels concerning resettlement policies and experiences of the World Bank, state resettlement policies, resettlement planning, resettlement implementing and resettlement monitoring and evaluation; —hiring professional agencies and experts as soon as possible to assist the drafting of the Resettlement Action Plan; conducting socio-economic investigation; and completing the Resettlement Action Plan under the help of professional agencies and experts; Preparatory work of resettlement organizations includes: —signing detailed resettlement contracts with project owners; —setting up or improve resettlement organizations at all levels and equipping them with necessary personnel; —organizing trainings for the personnel in resettlement organizations at different levels; working with project owners and their commissioned professional agencies on 93 socio-economic investigations and the formulation of the resettlement action plan; —and setting up resettlement information management system. 2) Implementing phase of internal monitoring At the implementing phase of internal monitoring, the project management office will: —conduct internal monitoring on resettlement activities in accordance with the Resettlement Action Plan; —submit a detailed internal monitoring report to the World Bank semiannually; —timely update statistical data on resettlement implementation and improve the resettlement information management system.

11.1.3 Content of internal monitoring

Internal monitoring will be conducted on the following items:  Organizations and agencies: establishment of the resettlement implementing organizations and associated agencies and their division of labor; staffing and capacity building of resettlement organizations;  Resettlement policies and compensation: formulation and implementation of resettlement policies; implementation of compensations for all kinds of relevant losses (caused by permanent and temporary land acquisition, demolition and relocation of residential houses, enterprises and public institutions, and special facilities, etc.). It is required to specify in particular whether all the compensations are paid in accordance with the standards stipulated in the Resettlement Action Plan and give reasons if there is any change;  Implementing process of demolition and resettlement: the overall and annual schedules; conditions of the establishment and staffing concerning resettlement organizations; the schedule of permanent and temporary land acquisition for the project; implementing progress of the adjustment, expropriation (or appropriation) and allotment of land in the resettlement area (which refers to all the land used for production, housing and public utilities in resettlement activities); and schedules related to house demolition, rebuilding of resettlement houses, moving of dislocated people, construction of public utilities, rehabilitation, relocation and rebuilding of special facilities,

as well as other resettlement activities. Progress report of internal monitoring of demolition and resettlement refers to Table 11-1;  Resettlement budget and its implementation: amount and time of gradual payment of resettlement funds; use and management of resettlement funds by resettlement implementing organizations at all levels; amount and time of payment of compensation funds to owners of affected property (real estate); and supervision over and audit of fund utilization. Internal monitoring report on the schedule of fund utilization refers to Table 11-2;  Resettlement related to farm production and jobs of dislocated persons: major approaches and number of people of rural migrant resettlement, the resettlement of vulnerable population (females families, elderly families, disabled families, etc.), reclamation of temporarily occupied land and the results of resettlement;  House rebuilding and life arrangements for dislocated people: approaches of relocating rural dislocated people and the host communities they go, house rebuilding modes, payment of compensation funds, and the construction of supporting facilities to and the relocation of public utilities (water and electricity supplies, road, etc.);  Complaints, appeals, public participation, consultation, information disclosure, and external monitoring: channels, procedures and responsible organizations related to complaints and appeals; major issues that people have made complaints and appeals about and their handling; main activities, content and forms of public participation and consultation and the corresponding effects; resettlement information booklet and its disclosure; independent monitoring organization and its activities and effects; and the external monitoring organization and its activities as well as results of external monitoring;  Handling of relevant issues in the memorandum book of the World Bank inspectorate;  Existing problems and their solutions.

11.1.4 Internal monitoring methods

Internal monitoring, as conducted within the internal resettlement system to

95 monitor the implementing process of the resettlement from top to bottom, requires to set up an standard, unobstructed and bottom-up information management system of resettlement implementation between the project management office related to the resettlement implementation and resettlement organizations at all levels so as to follow up and reflect the progress of resettlement implementation. Relocation agencies at all levels use the information management system to report the schedule of resettlement implementation, funds and effects from bottom to up as well as handle and analyze the information. The project management office has set up a perfect information management system which can memorize and manage all kinds of data and information related to the implementation activities comprehensively, timely and accurately. Based on the project implementation, this project will adopt the following several methods to conduct internal monitoring: 1) Normalized system of statistical report Project management office will formulate unified reports according to the requirements of the resettlement implementation. The reports should reflect the schedule of resettlement fund appropriation and the completion status of the relocation. And they are regular monthly reports submitted from bottom to up when funds are allocated at the end of every month so that relevant personnel can learn the project schedule through the status of fund appropriation. 2) Regular and non-regular reports Resettlement agencies at different levels shall take various forms to exchange with each other the issues occurred in the course of resettlement implementation and put forward corresponding proposals. 3) Regular joint meetings At the beginning of every month, the project management office holds a resettlement coordination meeting, at which members of resettlement offices at county and village levels report the project schedule and existing problems, or exchange their experience and discuss about the measures of addressing those problems. 4) Inspection Project management office conducts both conventional and unconventional inspections to the work of subordinate resettlement organizations, make in-depth field investigation, deal with resettlement problems on site, and verify the working schedule and the execution of resettlement policies. 96

5) Information exchange with the external monitoring organization Project management office and local implementing organizations should keep constant contact and information exchange with the external monitoring organization and take the findings and their evaluation opinions as reference. 6) Survey Project management office conducts surveys by combining questionnaires and household interviews to inspect the execution of the resettlement plan. The survey on households is conducted in the approach of sampling through selecting a certain number of households or collective enterprises, investigating their resettlement status with reports, and reflecting the actual payment conditions of compensation funds and relocation fees to see whether resettlement is strictly implemented in accordance with the Resettlement Action Plan. Project management office will conduct the first survey after the first sum of compensation funds are paid to affected subjects. When the first survey is completed, the office will adopt improvement measures to address the issues reflected in the survey results and by the channel of complaints, and follow up the implementation of those improvement measures. Follow-up investigations will track in the approach of questionnaire survey on a random basis concerning the placement of labor forces, land readjustment and settlements of complaint problems, and also collect comments and suggestions with respect to public consultation and house selection.

Table 11-1 Progress of land acquisition and house demolition Reporting unit: ______Date: ______/____/______(Year/Month/Day)

Resettlement activities Planned Complete Cumulative Ratio to the Unit quantity d completed total (%) quantity quantity Permanent land acquisition mu Temporary land acquisition mu House demolition m2 Land compensation 10 thousan d Yuan Payment of house relocation 10 compensation thousan d Yuan House reconstruction m2 Author: Signature of responsible personnel: Seal

Table 11-2 Schedule of fund utilization _____District____Town______Village (Community) Date _/____/______(Year/Month/Day)

Affected units Brief Quantity Funds Compensatio Cumulati Funds description (unit) needed n funds ve acquired (Yuan) acquired compens in during the ation proportion reporting funds to total period acquired compensat (Yuan) ion funds (%)

Author: Signature of responsible personnel: Seal

11.1.5 Internal monitoring organizations and personnel arrangement

Personnel of execution organizations related to monitoring are shown in Table 11-3.

Table 11-3 Personnel of execution organizations related to internal monitoring Resettlement organizations Regular staff Total number of personnel at peak period Project management office 4 6 Resettlement offices at the district 4 8 and county levels

11.1.6 Cycle and report of internal monitoring

Internal monitoring is a continuous process, during which there must be at least one overall monitoring in every quarter; in critical periods when major matters like relocation occur, the frequency of monitoring will be increased. During project preparation, internal monitoring organizations will work with the World Bank to draw up regular or non-regular internal reports, whose forms will be based on the requirements of the World Bank and differ according to the project and phase. When the implementation starts, brief weekly and monthly reports and detailed quarterly, semiannual and annual reports are needed for projects with relatively

98 significant influence while brief quarterly reports and detailed semiannual and annual reports are required for projects with less influence. Special reports shall be made in accordance with the requirements of the project management. And a final report shall be done when the project is over. The internal monitoring report shall be made by resettlement agencies at different levels to the people’s governments at their corresponding levels and their superior resettlement organizations and project management offices. The project management office shall submit an internal monitoring report to the World Bank every six months. 11.2 External monitoring

In line with the relevant requirements of the World Bank, during the implementing period of this project, project management office will designate an organization as the external monitoring organ for this project to take charge of the independent monitoring and evaluation concerning the resettlement under this project on the basis of extensive comparison and selection. This organization must have engaged in related work for more than 5 years with rich relevant experience.

11.2.1 Purposes of external monitoring

External monitoring and assessment is conducted by an organization independent of government organs to provide evaluation on the resettlement of dislocated people. Its purposes includes inspecting the implementation of the Resettlement Action Plan from a broad view and in a long term, monitoring and appraising the fulfillment of the objectives of land acquisition, resettlement and relocation, putting forward evaluation opinions and proposals, and taking remedial measures and timely follow-ups, so as to guarantee the results of resettlement implementation. External monitoring will track the land acquisition and relocation and resettlement activities to monitor and evaluate whether the resettlement has: 1) followed the state laws and regulations relevant to resettlement; 2) Followed the policies of the World Bank relevant to involuntary resettlement; 3) And made the living standard of people affected surpass or at least reach the level before resettlement.

11.2.2 External monitoring organization and its staff

The staff in the external monitoring organization must meet the following requirements: 1) Personnel engaged in the external monitoring should have experience in similar work, be expertise in doing socio-economic surveys, understand the requirements of the World Bank in terms of involuntary resettlement policies and know well relevant state and local policies and laws on resettlement. 2) The personnel should be able to conduct social investigations independently, endure hardships and work hard with good skills at communication and exchange.

11.2.3 Responsibilities of the external monitoring organization

The external monitoring organization will undertake the following activities:  conducting baseline survey on the living standard of people affected before the start of the resettlement to know well the basic situation of their life and production;  Tracking and monitoring the implementation of resettlement activities during the process of resettlement. It collects suggestions and grievances from people affected, reflects those issues timely to the project management office and local resettlement offices, and submits monitoring reports to the project management office and the World Bank;  Tracking and investigating changes in the production and living standard of the affected population, and appraising resettlement activities and measures;  Putting forward constructive suggestions based on surveys and full consultation with the affected population to the project management office and local resettlement agencies, so as to guarantee the smooth advancement of resettlement work and the rapid recovery of production and living standard of the population affected.

11.2.4 Methods and steps of external monitoring

The external monitoring organization will monitor the resettlement with the following methods: 1) A database related to the information of the affected population will be set up on the basis of resettlement surveys and regular household interviews will be carried 100 out. The external monitoring organization will conduct dynamic management on the basic information of relocation households and have almost real-time knowledge of dislocated people through the making best of the materials of socio-economic surveys and the resettlement management system established by the project management office. Bases on the information in the database, it will conduct household interviews among affected households, learn the progress of resettlement work, listen to complaints and suggestions from the dislocated people, and at the same time publicize relevant state policies, requirements of the World Bank and the information of the project construction. Household interviews shall be conducted by the external monitoring organization independently without company of personnel from local resettlement agencies or local administrative organs after getting the list and related information of the affected population from primary-level organizations. When doing such interviews, the interviewers should be relatively fixed, that’s to say, one interviewer should visit the same affected area as many times as possible, which will help establish a relationship of mutual trust between interviewers and relocated households and make the resettlement work easier. 2) For the area with dense affected population, non-regular symposiums shall be held. In the area where dislocated households concentrate, the external monitoring organization will listen to the opinions aired by affected people via colloquia. Such colloquia can be formal and informal with or without the presence of personnel from the resettlement agencies at the grassroots level, which depends on the specific situation at the time. 3) Field observation. The personnel from the external monitoring organization will visit the resettlement sites regularly or non-regularly and observe the resettlement progress on site. 4) Case study. The external monitoring organization will focus on analyzing some certain outstanding cases occurred in the process of resettlement, explore the roots of problems, find solutions and propose suggestions for reference. 5) Questionnaire survey. The external monitoring organization will conduct sample survey on the rehabilitation of life and production of dislocated people and their opinions on the resettlement work, and analyze the results promptly. And it will provide suggestions to address the existing problems, which can be used as reference for the resettlement work of next year.

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11.2.5 Main content of external monitoring

1) Monitoring on the resettlement of dislocated households One monitoring focus of the external monitoring organization is placed on the resettlement of this group of affected population. With regard to them, the external monitoring organization will stress the main monitoring indexes covering the following aspects:  whether the compensation price for houses and other land attachments is set in accordance with the principle of replacement cost;  whether compensation funds are allocated in time and in full;  whether the schedule for relocation is reasonable;  whether transition allowances and relocation costs are paid;  whether there is discount in compensation for material objects;  whether the infrastructure related to water and electricity supply and road at new resettlement sites is complete; who is responsible for the management of the infrastructure;  and whether it is easy to get to places like hospitals and schools from the new resettlement site. 2) Monitoring on production resettlement of dislocated people Based on the features of the affected land and its operation, the external monitoring organization will focus on the following aspects when monitoring the production resettlement of dislocated people:  whether the standards of compensation for various kinds of land acquisition is in accordance with relevant state laws;  whether the appropriation procedures for the land compensation can guarantee the affected village obtain its share of funds;  whether the information related to the quantity of to-be-acquired land, the standards of compensation and the amount of compensation is disclosed all over the village and in what form it is disclosed;  if the land compensation is paid directly to a person, then how the scope of distribution shall be determined;  whether there is specific and feasible plan for the concentrated utilization of land compensation;  whether opinions of relevant villagers are inquired during the formulation of

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the plan for the utilization of land compensation, and how such plan is determined eventually. 3) Monitoring on the operation of resettlement agencies Competent, professional and efficiently functioning resettlement agencies guarantee the smooth running of resettlement work. Therefore, monitoring on the operation of those agencies is also a major task of the external monitoring organization, and it is mainly conducted in the approached of field visits to and inspections of working data and records of the targeted agencies. The main content includes:  whether the personnel ratios in resettlement agencies at different levels satisfy demands of the resettlement work;  whether resettlement agencies at various levels have the necessary working conditions;  whether the personnel in resettlement agencies are qualified enough to do the resettlement work;  personnel training in resettlement organizations;  internal information management of resettlement organizations. 4) Monitoring on the resettlement of vulnerable population Vulnerable population which resettlement agencies give special care to is a group that the external monitoring organization should pay much attention to during its monitoring process. The external monitoring organization will track and monitor the vulnerable groups in the affected population under this project with methods of household interviews, questionnaire surveys and case study. Main monitoring indexes covers:  special preferential policies vulnerable groups enjoy during the resettlement;  whether needy families affected get assistance during the relocation process;  rehabilitation measures for production resettlement of affected needy households;  whether special requirements of affected female population are fully considered in the resettlement measures;  whether vulnerable groups, especially women, can obtain job opportunities related to the project; how many people in vulnerable groups are employed in the construction of the project;  and whether there is female personnel in charge of women affairs in 103

resettlement organizations. 5) Baseline survey on the living standard of affected population Before the official start of resettlement implementation, the external monitoring organization will create baseline data related to the resettlement for the World Bank Funded Qinghai Xining Urban Transit Project by means of sample survey in the form of structured questionnaires. In the survey, the monitoring organization will take all the affected households involved in the socio-economic investigations conducted at the preparatory stage of the project as the sample database and conduct stratified sampling. The sampling ratio for the baseline survey on living standard is 10% of the relocated households and families affected by land acquisition. The baseline survey on the living standard of affected households mainly includes: size of the family, production and management, housing construction area, annual household income, employment structure, annual household expenditure, transportation condition, water and electricity supply condition, dwelling environment, and subjective evaluation on the production and living conditions. 6) Monitoring and assessment on resettlement effect When the official implementation of the resettlement starts, the external monitoring organization will follow up and monitor the resettlement effect continuously. With respect to affected households, the external monitoring organization will conduct follow-up survey after half a year upon resettlement. The follow-up survey, similar to the living standard baseline survey, will be conducted by means of sample survey with structured questionnaires. It shall reflect the impact of resettlement on the life and production of respondents so as to help evaluate the effect of resettlement. Considering its sample selection, the follow-up survey shall be conducted in the same principle the living standard baseline survey follows and shall focus on tracking the respondents of the living standard baseline survey. When finishing the baseline survey, the external monitoring organization shall set up a database on all samples which can serve as the sample source of the follow-up survey. For a small number of respondents who are difficult to be tracked after due to various factors, the organization shall replace them with the same type of affected households in the same communities based on the information in the early socio-economic investigation data bank. The content of follow-up survey should be well connected with the living standard baseline survey so that comparison and analysis can be done on changes in 104 life and production of affected households before and after the resettlement. Meanwhile, affected people are inquired about their subjective opinions on the resettlement work, which can be used as reference for the assessment of the effect of the resettlement.

11.2.6 External monitoring report system

The external monitoring organization writes external monitoring reports based on observations and information obtained from surveys. Reports are written mainly for two ends: on one hand, to reflect objectively the progress of and problems in the resettlement work to the World Bank and the project management office; on the other hand, to evaluate the socio-economic effect of the resettlement and to provide constructive comments and suggestions so as to improve the resettlement work. During the reporting cycle, the external monitoring organization should submit to the World Bank and the project management office:  an interim monitoring report concerning the resettlement work in the first half of the year before July 31st every year.  an annual monitoring report before January 31st every year;  a comprehensive post-resettlement appraisal report half a year later upon the conclusion of resettlement work. Conventional monitoring report should at least contain the following aspects: 1) the monitoring object of the report; 2) the progress of the resettlement work; 3) major discoveries of the monitoring organization; 4) major problems; 5) comments and suggestions from external monitoring. Reports submitted by the external monitoring organization to the project management office and the resettlement experts of the World Bank should be in both Chinese and English. Before officially submitting those reports, the external monitoring organization should inform relevant personnel in resettlement offices, ask for their opinions and exchange ideas with regard to the content and form of the report.

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12 Entitlement Matrix

Type of Applied scope Entitled people/ village Compensation policies Right to compensations Compensation Standards losses Cash compensation that is Villages and farm households that sufficient for the affected Cultivated land located have contracted the land, people to maintain current Compensation for cultivated within the scope of the involving 481 affected Monetary compensation is economic and social status. land (crop field) 90,000 project site. This project households with 1,921 people in 6 paid to villages and farm Land acquisition Yuan per mu, for young expropriates administrative villages which households affected by land compensation for contracted crops 2,700 Yuan per mu, permanently an area of including Taobei Village, acquisition under this Permanent land that is distributed to the for nursery stock 36,000 788.09 mu, of which Wangjiazhai Village, Wuzhong project. The production and land loss affected households in total. Yuan per mu, for greenhouse 534.45 mu is cultivated Village and Dabaozi Village in living standards can be Provide old-age pension attachments 38,000 Yuan land, 253.64 mu is Dabaozi Town of Chengbei rehabilitated steadily through insurance for the per mu, and for state-owned non-cultivated land, and District, Sanqi Village in Mafang diverse resettlement land-expropriated peasants. construction land 156,000 8.46 mu is state-owned Community and Zuoshu Village measures. Skill training measures. Yuan per mu. construction land. in Xibao Town of Huangzhong Employment promotion County. measures. Compensation for residential Houses and attachments houses in rural areas: frame located within or structure 1,230 Yuan/m2, Resettlement in multi-storey affected by the scope of Housing compensation shall brick-concrete structure commercial-residential the project site. This House owners, 121 households be higher than complete 1,124 Yuan/m2, brick-wood buildings is adopted; the project will demolish with 523 people affected by replacement price, regardless structure 1,112 Yuan/m2, Loss of Wangjiazhai Village rural residential residential house demolition in of depreciation cost. earth-wood structure 1,035 houses and Committee shall be rebuilt at buildings covering an rural areas, and 7 units of Relocation grants, Yuan/m2, earth-concrete attachments the new resettlement site and area of 149,974.315m2 different types of enterprises and transitional allowance and structure 998 Yuan/m2, and other enterprises and public and structures belonging public institutions. relocation rewards shall be utility room 600 Yuan/m2. institutions agree to accept to enterprises and public provided. Compensation for plants and monetary resettlement. institutions with an area offices of enterprises and of 5792.73m2. public institutions: brick-concrete 1,014

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Yuan/m2 and brick-wood 996 Yuan/m2 (collectively-owned) while brick-concrete 1,125 Yuan/m2 (state-owned).

Temporary Compensation for the loss of Compensation for the loss of occupancy of Land owners and contractors young crops is provided to young crops is obtained to collective help rehabilitation. help rehabilitation. land The disabled can enjoy There are 17 destitute, Vulnerable groups of priority to choose Each household will be Vulnerable low-income, disabled and Priority in resettlement and the affected population resettlement floor and obtain subsidized with 10,000 population female-headed families with 72 additional assistance in this project additional financial Yuan. people altogether. assistance. Compensation shall be paid Compensation shall be paid Attachments by the project undertaking by the project undertaking Various attachments above the owners unit to the owners in unit to the owners in above the ground ground accordance with the principle accordance with the principle of complete replacement. of complete replacement. Various costs and managerial Various costs and fees relevant to the administrative fees relevant All affected Within the scope of the complaints made by affected to the complaints made by All affected population/ units types project site people with respect to affected people with respect resettlement issues shall be to resettlement issues shall exempted. be exempted.

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Appendix 1 Resettlement Information Booklet

Dear Mr. / Ms. ______: As the World Bank Funded Qinghai Xining Urban Transit Project shall be built in the place where your family is located, this booklet is delivered to help you learn the basic information about the project, relevant state policies concerning land acquisition and relocation, as well as its impact on your family. I. Brief introduction to the project The World Bank Funded Qinghai Xining Urban Transit Project is composed of four parts covering the construction of major urban roads, public transit, intelligent traffic management as well as organization setting and capacity building. The project shall start in August 2013 with a construction period of 3 years according to the preliminary plan. II. Laws, regulations and compensation standards relevant to land acquisition and relocation Policies related to land acquisition and relocation occurred in this project are made in accordance with the following laws and regulations:  the Land Administration Law of the People’s Republic of China, which was put into effect in January, 1999 and amended on August 28th, 2004;  the Decision on Furthering the Reform and Intensifying the Land Administration released by the State Council on October 21st, 2004.  the Guiding Opinions on Improving the Compensation and Resettlement System for Land Acquisition released by the Ministry of Land and Resources (November 3rd, 2004);  Notice of the People’s Government of Qinghai Province on Releasing the Uniform Standards of Annual Output of Requisitioned Land and the Composite Land Price of Requisitioned Tracts of Land, May 1st, 2010;  Notice of the Department of Land and Resources of Qinghai Province on Issuing Compensation Standards for Land Requisition and Demolition Involved in the Construction of the Second Double Line Project of Lanzhou-Xinjiang Railway (No.33 [2009] of Department of Land and Resources of Qinghai Province), May 13th, 2009;

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 Notice of Xining Municipal Government on Issuing Compensation Standards and Price Assessment Rules for House Demolition and Relocation in Xining (No. 30 [2004] of Xining Municipal Government), March 4th, 2004;  Notice of the General Office of Xining Municipal Government on Issuing Compensation and Resettlement Plan for Land Requisition and Demolition Involved in the Renovation Project of Xining Station and Related Projects (No. 179 [2011] of the General Office of Xining Municipal Government), August 9th, 2011;  World Bank operational policy OP4.12 Involuntary Resettlement and Appendixes, coming into force on January 1, 2002;  World Bank business procedure BP4.12 Involuntary Resettlement and Appendixes, coming into force on January 1, 2002. See the following table for compensation policies related to land repulsion in this project. Category Compensation Standards I. Land requisition compensation II. Houses III. Land attachments IV. Special infrastructure III. Impact on your family (working place) Compensation Due Items Quantity Remarks standards compensation 1 2 3 4 Total

IV. Planned timetable of the project Item Time Releasing the announcement related to land requisition and demolition Paying funds Land requisition and demolition Moving into new houses Preparation for the project Project construction

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V. Rights and obligations of affected people (I) Rights of the affected people The affected households can obtain all due compensations in accordance with the above standards, and reflect their opinions and suggestions to those agencies at different levels in the order of village, county and the World Bank Project Management Office in Xining. To be specific, they can voice their opinions on the following aspects: base amount of the quantity of compensation, compensation standards, payment time for the compensation and the selection of house reconstruction site. All the resettlement offices must make replies to the complaints from the affected people or reports from subordinate resettlement agencies in 15 days after receiving them. (II) Obligations of the affected people  Be cooperative with the project construction.  Do not build new structures within the area under the investigation when the resettlement survey is over; otherwise, no compensation shall be paid. VI. Complaint and grievance procedures You can express your complaints and grievance about the resettlement work via the following procedures: Stage 1 The affected people can express their complaints orally or in writing to the village or community resettlement offices. In case of oral complaints, the village or community resettlement office must record them in written form and make clear replies in two weeks. In case of severe matters concerned which need the instruction from the superior resettlement office, they must try to get replies from the superior resettlement offices in two weeks. Stage 2 In case that the replies at Stage 1 are not satisfactory, the complainants can appeal to Xining Project Management Office within one month after receiving the replies at Stage 1. And the Project Management Office in Xining must make decisions about how to handle the complaints in three weeks.

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Stage 3 In case that the replies at Stage 2 are still not satisfactory, affected people can appeal to the civil court within 15 days after receiving the replies at Stage 2. VII. Organizations related to land acquisition and resettlement  Organizations at city level The World Bank Project Management Office in Xining Address: 13 Wusi Avenue, Xining Telephone number:  The resettlement organization in Chengbei District of Xining Address: Dabaozi Town Government, Chengbei District Telephone number:  The resettlement organization in Huangzhong County Address: Bureau of Land and Resources of Huangzhong County Telephone number:  The external monitoring organization Address: Telephone number: VIII. Authority for the interpretation of this booklet Xining Project Management Office has the authority for the interpretation of this booklet. Thank you for your support!

Xining Project Management Office March, 2013

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Appendix 2 2010-2012 Resettlement Due Diligence Report

1. Background

According to the policies of involuntary resettlement of the World Bank and expert group of World Bank Funded Xining City Urban Transit Project, the Xining South Ring Expressway Project, Qaidam Road Reconstruction and Expansion Project, Western Section of Western Wusi Road (The Fourth Road – Huangshui Road) can associate with Xicheng Urban Transit Project in function. The implementation office of World Bank Funded Xining City Urban Transit Project shall submit a resettlement due diligence report for all finished or ongoing associated projects during the recent two or three years (2010-2012) so as to prepare the Resettlement Action Plan of land acquisition and relocation of all the subprojects of the World Bank funded project. The report should ensure that the resettlement work in these projects is in accordance with the laws and regulations of Xining City, Qinghai Province and the People’s Republic of China as well as the security policy of the World Bank. This due diligence report reflects the finished or ongoing resettlement work of all the associated 2010-2012 projects. South Ring Expressway Project and Yanxiaocun public transit transfer junction have to submit the due diligence report according to the involuntary resettlement policy of World Bank because the former has launched the land acquisition and house demolition and resettlement and latter has finished its land acquisition prior to the identification of The project (2011). Western Section of Western Wusi Road (The Fourth Road – Huangshui River Section) and Qaidam Reconstruction and Expansion Project just passed the feasibility reports. The Xining Government promises that resettlement work of other associated non-World Bank-funded construction projects will be implemented according to the resettlement policy of the World Bank-funded project. A resettlement policy framework has been prepared as required by the involuntary resettlement policy of World Bank for guiding those associated projects (see appendix 3). 112

2. Land acquisition and relocation of South Ring Expressway

(1) Project Brief Xining South Ring Expressway is the Xining South Ring section of Beijing-Lhasa Line of National Expressway Network, and also an important part of the Qinghai Provincial Expressway Network. It plays an important role in completing the National Expressway Network, implementing the strategic Western Development, improving regional transportation, relieving Xining’s transportation pressure and promoting regional economic and social development. Xining South Ring Road section of Jingzang Expressway starts from Yanggouwan Village in the east and reaches to Zhamalong Village, Huangzhong County in the west, covering the East, Central and West Xining Districts, one County and Dongchuan Industrial Park, totaling a length of 45.94 kilometers. It adopts two-way six-lane standard, design car speed of 100 km/hour, standard roadbed and bridge/culvert width of 33.5m, and construction period of 5 years. The Project was replied by Qinghai Development and Reform Commission with “The Qinghai Development and Reform Commission’s Reply to the Feasibility Report of Xining South Ring Expressway Project” (No.350 [2011] of Qinghai Development and Reform Commission), and the preliminary design was replied by Qinghai Ministry of Transportation with No. 204 [2011] of Qinghai Expressway Transport. The project is funded by national fund and banks, and the construction company is Qinghai High-grade Road Construction Administration. In the end of September, 2012, the project was approved by the State Development and Reform Commission.

(2) Impact of land acquisition and relocation of the project

The project permanently occupied land of 5515.98mu, demolished houses of 520487.71m2, and relocated 7350 tombs. Up till February 8, 2013, it has allocated land of 4163.78mu, demolished houses of 413396.49m2, relocated 4519 tombs, and removed or cut down 1292971 trees.

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Table 1 Progress schedule of land acquisition and relocation of Xining South Ring Section of Jingzang Expressway (Feb.8, 2013)

District/ Land acquisition (mu) House relocation and demolition Tomb relocation Tree cutting and removal County (m2) Attempted Completed Completion Transferred Attempted Completed Completion Attempted Completed Completion Attempted Completed Completion percentage quantity percentage percentage percentage Huangzhong 2251.49 2042 90.70% 1500 134909 128909 95.40% 445 411 92.36% 7784 7259 93.26% County Dongchuan 1175．21 929.98 79.13% 521.41 51169.1 4511.22 8.88% 6112 3285 53.75% 1057898 419933 39.70% Industrial Park East District 518.09 Central 1024.48 710.13 69.31% 625.13 162050.59 127147 78.46% 468 468 199% 165000 165000 100% District Western 546.96 258.01 17.17% 258.01 128759.02 114962.48 89.28% 115 115 100% 340285 District Total 5515.93 4163.78 75.49% 3140.21 520487.71 413396.49 79.42% 7350 4519 61.23% 1292971 Source: Leading group office of land acquisition and relocation of Xining South Ring Expressway

(3) Resettlement organization and agency

Xining South Ring Expressway Project Office was established in August 9, 2011. In order to make a good work of the resettlement, the Project Office established the relocation coordination department, which is responsible to: ● Account for the initial and preliminary review, examination and submission for approval of construction land; ● Organize the alignment, boundary marker embedment of construction land, handle boundary marker transfer procedures, and carry out casual inspections to prevent intrusion of construction land; ● Coordinate with Xining Government and the Land Acquisition and Relocation Department of Haidong Prefecture Administrative Office and timely hand in construction land; ● Actively reinforce contact and communication with all the industrial departments; organize and coordinate industrial relocation and transformation to create conditions for continuous construction; ● Register, classify, organize and file the original materials about land acquisition, house demolition, industrial relocation and transformation. Formulate and fill in Table 08/09/10/11 in the compiling method of completion documents;

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● Precisely audit fees of relocation as well as industrial relocation and transformation, sign the contract agreement, allocate compensations on schedule, establish a full account for relocation fees, and timely file the relevant documents; ● Coordinate the handling of the impact of external environment on project construction, timely report the major problems to upper leaders and guarantee smooth information flow; ● Handle petitions about land acquisition and relocation; ● Draft up relevant documents about land acquisition and relocation as well as external environmental impact; ● Organize and compile documents of land acquisition, relocation and completion of works. Since the Project Office is only a section chief unit under Qinghai High-grade Road Construction Administration, the coordination department of land acquisition and relocation can coordinate with Xining Government, and the land acquisition and relocation of Haidong Prefectural Administrative Office. For the compensation and resettlement for project land acquisition and relocation, the Xining Government and Haidong Prefectural Administrative Office shall take full responsibility, and the key personnel of county and district government of project construction shall be the first person responsible for organization and implementation of the work. Qinghai Office of Land and Resources are responsible for the supervision and coordination of land acquisition and relocation, and the land acquisition center of the provincial Office of Land and Resources carries out whole process tracking and all-round services as well as technical guarantees. According to the actual work of land acquisition and relocation, Xining City establishes South Ring Expressway Land Acquisition and Relocation Leading Group including the transportation, construction, forestry and planning authorities. The group office is set at Xining City Transportation Bureau equipped with professional personnel. In the along East, Central, West Xining Districts, Huangzhong as well as the Dongchuan Industrial Park, relevant organizations for land acquisition and relocation were also established, which are mainly under the charge of the land 115 ministry.

(IV) Resettlement policies

Policies regarding compensation for land acquisition and resettlement In light of the Notice of Specifying Matters Concerned about Compensation for Land Acquisition Involved in the Construction of Xining South Ring Expressway Project (No. 167 [2011] of the Department of Land and Resources of Qinghai Province), compensation for land acquisition involved in the construction of Xining south ring expressway shall be implemented in strict accordance with the principles and standards stipulated in the Notice of the People’s Government of Qinghai Province on Releasing the Uniform Standards of Annual Output of Requisitioned Land and the Composite Land Price of Requisitioned Tracts of Land (No. 26 [2010] of the People’s Government of Qinghai Province). The expropriation of buildings on collective land and state-owned land within Chengdong District, Chengzhong District and Chengxi District of Xining City shall be implemented in accordance with Xining Municipal Government’s Report of Compensation Standards for Land Acquisition and Demolition Involved in Xining Station Renovation Project and Related Projects approved by Qinghai Provincial Government; and compensation standards for other land attachments shall comply with the Notice of the Department of Land and Resources of Qinghai Province on Issuing Compensation Standard for Land Acquisition and Demolition Involved in the Construction of the Second Double Line Project of Lanzhou-Xinjiang Railway (No.33 [2009] of Department of Land and Resources of Qinghai Province). In accordance with the Uniform Standards of Annual Output of Requisitioned Land and the Composite Land Price of Requisitioned Tracts of Land in Qinghai Province (Trial Implementation) which was issued by the People’s Government of Qinghai Province and took effect from May 1st, 2010, the standards for land acquisition involved in the construction of Xining south ring expressway project covering Chengdong District, Chengzhong District, Chengxi District, Huangzhong County and Dongchuan Industrial Park fall into two categories: the composite land

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price for requisitioned tracts of land and the uniform standards of annual output. The standards applicable to Chengdong District, Chengzhong District, Chengxi District and Dongchuan Industrial Park shall comply with the composite land price for requisitioned tracts of land, including three classes: Class I 97,200 Yuan per mu, Class II 90,000 Yuan per mu, and Class III 27,000 Yuan per mu. The standards applicable to Huangzhong County shall comply with the uniform standards of annual output, including five classes. Those areas which the south ring expressway passes through shall be compensated in accordance with Class 1, 2 and 3.

Table II The uniform standards of annual output to be implemented in Huangzhong County

Uniform standard of annual output of Compensation for land acquisition requisitioned land (Yuan/ mu) Class 20 times for irrigable land Irrigable 20 times for dry 11 times for Dry land Grassland (30 times when 0.3 mu land land grassland per capita) 1 1950 1050 165 39000（58500） 21000 1815 2 1560 1020 165 31200（46800） 20400 1815 3 1470 885 143 29400（44100） 17700 1568 4 1305 885 128 26100（39150） 17700 1403 5 1110 750 128 22200（33300） 15000 1403

Compensation for vegetable and garden plots shall be the same to the cultivated land with similar conditions, for wood land shall be 6 times the uniform annual output value of cultivated land with similar conditions, for unutilized land shall be comply with the compensation standards for the type of land adjacent to it, and for young crops shall be the uniform annual output value of the land they grow on. And compensation standards for attachments above the land shall comply with the latest compensation standards regarding large infrastructure construction projects relevant to traffic, energy and water conservancy approved by the provincial government. Compensation for the expropriation of state-owned land shall be implemented in accordance with the above standards. In light of Xining Land and Resources Bureau’s Notice of Forwarding the Notice of the General Office of Qinghai Provincial Government on Forwarding the Interim Measures of the Department of Human Resources and Social Security and Other 117

Departments concerning Social Endowment Insurance of the Land-Expropriated Peasants (No.11 (2013) of Xining Land and Resources Bureau), in terms of rural collective land uniformly expropriated by local land and resources administrative departments, for registered farmers (reservoir migrants included) at the age of 16 and above who has remaining arable land per capita less than 0.3mu with second-round land contract warrant and have not taken out basic social pension insurance for urban enterprise employees, they can participate the social pension insurance for land-expropriated peasants. Social endowment insurance fund for land-expropriated farmers shall be raised in accordance with a certain proportion of the subsistence allowance for local urban residents at the time when the land is expropriated, consisting of individual payment, government subsidies and village collective grants. Individual payment. Farmers who intend to take out the social endowment insurance of land-expropriated peasants shall pay 35% of 15-year endowment insurance premium at one lump sum with the subsistence allowances for local urban residents at the time when land is expropriated as the base. For farmers whose land is newly expropriated, the premium will be withheld at one time from the land compensation and resettlement allowances after the examination and approval by relevant authorities in the local government and organizations at the time when the land is expropriated. Government subsidies. People’s governments at the county level and above to carry out land acquisition shall provide subsidies to help land-expropriated farmers with their individual payment. The subsidizing standard shall be equal to 15% of the subsistence allowance of local urban residents. The local financial department shall allocate a sum of money amounting to 15 years’ payment subsidies from land grants in priority. For the insured (reservoir migrants included) who are eligible for the pension, the local government shall provide a monthly basic pension of 120 Yuan. People’s governments at the county level or above to carry out land acquisition can appropriately increase the standards of basic pension of land-expropriated farmers

118 and payment subsidies in accordance with local economic and social development level. Collective grants: If conditions permit, village collectives can provide grants to the insured, in accordance with the standard democratically determined by Village Committees. The social pension insurance base for new land-expropriated peasants shall be timely adjusted to the changes of minimum living standard guarantee for local urban residents. The insured can get their endowment insurance benefits every month when they reach the age of 60. The endowment insurance benefits consist of basic pension and individual account pension. Basic pension is 120 Yuan; individual account pension is the accumulated amount of the savings in individual account divided by 139 (identical to the coefficient of individual account pension used in the present urban employees’ basic pension insurance). Policies regarding compensation for housing demolition and resettlement Policies regarding compensation for housing demolition and resettlement involved in the construction of Xining South Ring Expressway shall be implemented in accordance with Xining Municipal Government’s Report of Compensation Standards for Land Acquisition and Demolition Involved in Xining Station Renovation Project and Related Projects (No. 53 [2011] of Xining Municipal Government). Monetary resettlement will be adopted as the primary resettlement method with other means as subsidiary. Urban residents living in complete set apartments shall be resettled in houses for removal and relocation caused by major projects with the same area to their original apartments in the resettlement area proposed by the municipal government and they should pay for the excessive housing area at a market price; for those who do not need housing resettlement, they will get compensation in accordance with the construction cost of their houses; with respect to incomplete set apartments, they shall be compensated at the replacement price for self-built houses and their owners are allowed to buy a set of apartment built in the resettlement area proposed by the municipal government.

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With respect to households in financial or material difficulties (disabled households included) which have relevant credentials to entitle them to the minimum living guarantee in the city, the People’s Government of Chengdong District shall resettle them in urban low-rent houses in accordance with relevant provisions. People from other prefectures, counties and provinces who are not registered as permanent residents of the city shall be resettled with one-off monetary compensation in accordance with the assessment price. With respected to the to-be-demolished houses of relocated villagers, those villagers shall be grant with monetary compensation after their houses have been assessed and confirmed by qualified appraisal organs. And they shall be resettled in the new villages under construction by their respective village committees. Structures of enterprises and public institutions shall be compensated at replacement price and with one-off monetary resettlement in principle. Those which need to be resettled in different places shall be reported to the municipal government for approval and unified resettlement. The Qinghai-Tibet Railway Company shall be responsible for relocating its staff and workers in its resettlement area.

(V) Resettlement of affected population

Land acquisition and demolition involved in the construction of south ring expressway has started from May 27th 2011. As of February 8th, 2013, the task of land acquisition has finished 75.49%; the task of housing demolition: 79.42%; and 61.23% of 4,519 tombs have been relocated (according to Table I). The specific land acquisition and demolition as well as resettlement status in various districts and counties along the expressway is as follows: Chengxi District There are 18 enterprises in Chengxi District that need to be relocated. Five have been demolished, and the rest 13 will be removed before April 20th. 17 enterprises accept monetary resettlement, and only a gas station under PetroChina requires to be rebuilt on a new site as it has signed a framework agreement with Qinghai Provincial Government. The relevant procedures for project resettlement are being handled at

120 present. 215 households in Pengjiazhai Village are affected, with 78 land-expropriated households and 136 relocated households. Currently, the task of relocation has completed and the 136 relocated households have all moved into Pengjiazhai New Village (in the Haihu New District). One relocated household with urban residents has bought an apartment and resettled in Pengjiazhai New Village through negotiations after receiving the monetary compensation (See Picture I).

Picture I Pengjiazhai New Village

There are 56 relocated households in Shenjiazhai Village and Nanyoushan Village respectively, with a demolishing area of 89,600 square meters. Each household will be allocated with 0.35 mu homestead land for building their own houses. Yuanshu Village and Hongguang Village have only experienced land acquisition. Chengzhong District The section of south ring expressway passing through Chengzhong District is 6.4 kilometers’ long, occupying 1,790 mu collective and state-owned land. The demolishing area of enterprises and public institutions is about 47,000 square meters in Chengzhong District. Xining Distillery (the current Chongcao Brewery

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Company), Yongtong Building Company and the switch factory have received monetary compensation; and negotiations are still conducted with the Tower Company, the electrical appliance and switchgear company, the post office on the East Nanchuan Road, the Fishery Research Institute and the former building company on the Lirang Street. 145 households with urban residents need to be relocated. 114 households have already been resettled in Runhua Neighborhood (low-cost housing), with 50 square-meter housing area as the compensation and the excessive part to be bought at a price of 3780 Yuan/m2, which is a little expensive than that in Jianan (3200 Yuan/m2), while the market price is at least 4000-5000 Yuan/m2. Shenjiazhai Village in Chengzhong District will undergo resettlement in a new village. Relevant procedures for the construction of new village have obtained official reply at the beginning of this year. Chengdong District There are 112 households with a demolishing area of 45,000 square meters in Chengdong District. 48 households with villagers of Lianhe Village and Tuanjie Village will be resettled in a new village, which will be built by the village committees. At present 45 households have relocated and lived in the transitional area, and there are still three households left. The rest 64 households with urban residents have accepted monetary compensation, and 6 of them have been resettled in Fujiazhai Neighborhood (see Picture II). There are 8 enterprises and public institutions and all of them have accepted monetary compensation.

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Picture II Fujiazhai New Village under construction

Huangzhong County The demolishing task in Huangzhong County involves 11 villages with an area of 138,000 square meters. Houses on 128,700-square-meter land have been pulled down or will be removed in accordance with the signed relocation agreement. 9 households in Baozi Village, 4 households in Fengsheng Village, 7 households in Yingeda Village and 8 households in Guosiyin Village have chosen to resolve the resettlement issue by themselves. The rest households in those four villages, together with 115 households in Zuoshu Village, 48 households in Ganhemen Village and 56 households in Dayagou Village are waiting to be resettled in Duoba New Town, ready to live in multi-storey residential apartments. On the whole, the land acquisition and demolition involved in the construction of south ring expressway has gone smoothly, although there are still some dislocated persons living in the transitional area. This is partly because the rapid urban development of Xining City has led to changes concerning the original resettlement and rehabilitation plan and has delayed the resettlement and rehabilitation of affected population.

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Bureau of Housing and Urban-Rural Development of Huangzhong County at the afternoon on January 17th The centralized resettlement involved in the construction of the South Ring Expressway is at a cost price of 1500 Yuan/ m2. 110 households in Zuoshu Village are planned to be demolished, and the work has started from 2011 and will end in 2013. In the original plan, homestead house resettlement was decided. But according to the development trend of Duoba, residential buildings are adopted to save land.

Xining Municipal government and relevant districts and counties involved in the construction of south ring expressway have adhered to the concept of people first and harmonious land acquisition and relocation during the entire course of the relevant work so as to ensure that lawful rights and interests of the land-expropriated people are not prejudiced (see Picture III). With a practical and realistic style of work, the relevant authorities have measured and checked objects to be relocated accurately, and established and improved the files in accordance with the specified procedures (see Picture IV). For traffic and water conservancy facilities affected by the construction of the expressway, restoration plan has been worked out; and for power and communication facilities affected, relevant units have been contacted timely to rearrange those facilities so as to ensure that the production and life of people along the expressway will not be affected. The use of resettlement fund will be examined by the city auditing department, and resettlement progress will be inspected by the city land management department.

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Picture III All the compensation items have been approved by affected households with their signatures

Picture IV Establishing and completing files

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III Land acquisition involved in the project of Yanxiaocun (Yanxiao Village) public transit transfer junction (I) General information of the project The proposed site for the project of Yanxiao Village public transit transfer junction is located adjacent to Xihuang First-class Highway of Yanxiao Village, Dabaozi Town in Chengbei District, and 10 kilometers away from the downtown area. The public transit transfer junction will witness passengers from places west to Xining City and from rural areas, and link Xining with cities at prefectural level including Huangyuan, Haixi, Hainan, Guoluo and Yushu. It will be built into a first-class passenger depot. With an advantageous geographic location close to Qaidam Road (Xihuang First-class Highway) and the west inter-city expressway, the passenger depot will dispatch a large number of passengers. In view of the construction of Haihu New District and Xicheng New District as well as the westward expansion of the city, a public transport transfer hub, a bus dispatch center, a parking lot, a gas station and relevant service facilities will be built there. Stress will be given to comprehensive commercial development, and function zones for offices, markets, catering service and accommodation will also be created so that land resources can be developed and utilized comprehensively and local economy can gain rapid progress. (II) Resettlement organization and agency Xining Chengtong Traffic Construction and Investment Co., Ltd. is responsible for the project organization and implementation. Xining Institution of Unified Collection is responsible for the land acquisition. Chengbei District Government is responsible for the resettlement. (III) Impact of land acquisition involved in the project The total construction land of this public transit transfer junction project covers an area of 14.19 hectares (about 212.86 mu). The project obtained official reply of approval from the Development and Reform Committee in June 2009. Land acquisition involved in it had been commissioned to Xining Institution of Unified Collection by Xining Chengtong Traffic Construction and Investment Co., Ltd. in 2010 and finished in 2012. No demolition and relocation is involved in this project. 126

(IV) Resettlement of affected population Xining Institution of Unified Collection to which the work of land acquisition was commissioned had conducted one-to-one negotiations with village committees concerned on the compensation for land acquisition. According to our survey, the compensation standard adopted is in line with the current standards specified in relevant policies.

Chen Zhiguo (the Secretary) of Taobei Village on January 14th, 2013 27 mu land was expropriated for the project of the public transit transfer junction, 90,000 Yuan for one mu and 2,700 Yuan for green crops. There is 15 mu land with greenhouse. And tens of thousands of Yuan was compensated for green crops and other facilities. We’re very satisfied.

As land acquisition was done with village committees not individual persons, it is not clear how many households have been affected.

V. Use of resettlement fund

Only land acquisition involved in Yanxiao Village public transit transfer junction. Land compensation is directly transferred to the village committees. The committees have announced the received compensation. The use plans of compensation are still under discussions.

Conclusions

After checking working data related to land acquisition and demolition involved in the construction of Xining south ring expressway and Yanxiao Village public transit transfer junction between 2010 and 2012, we can come to the following conclusions about the relevant resettlement work: Xining South Ring Expressway First, land acquisition and demolition policies regarding the construction of South Ring Expressway between 2010 and 2012 are formulated in strict accordance with relevant laws and regulations as well as policies issued by the state and Qinghai Provincial Government. 127

Second, land acquisition and demolition as well as resettlement of Xining South Ring Expressway between 2010 and 2012 was conducted in accordance with laws and has won support of the affected population, who got involved in the whole process and has been resettled properly. There arose no incident that disturbed the social stability. Third, families which suffered house demolish in Xining South Ring Expressway were well provided to live through the transitional period. Yanxiao Village public transit transfer junction First, compensation standards for land acquisition involved in the project of Yanxiao Village public transit transfer junction complied with relevant laws and regulations as well as policies issued by the state and Qinghai Provincial Government. Second, the process of land acquisition and use of compensation fund are transparent and in compliance with relevant law and regulations. The affected population was satisfied and there was no legal dispute left over.

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Appendix 3: Resettlement Policy Framework of Xining Urban Transit Project

I. Project Background and Related Projects In order to meet the demands of urban traffic development, Xining city applied for loans from the World Bank to use them in the construction of urban infrastructure project. This Project includes four subprojects, i.e. urban roads, public transit and intelligent transportation system and capacity building so as to improve Xining’s urban traffic conditions. According to plans, project implementation period is from 2012 to 2014. During the period from 2012 to 2013, the main work is preliminary approvals, engineering design and bid invitation. Project implementation is actually started from March 2014 and all subprojects are to be delivered for use in 2007. During project design process, Xining project office and World Bank experts have identified the related projects when doing identification of this Project. Analysis indicates that the related projects of this Project mainly include South Ring Expressway, land acquisition for Yanxiaocun public transit transfer junction, western section of Western Wusi Road (the Fourth Road – Huangshui Road) and the reconstruction and expansion of Qaidam Road. Land acquisition, demolition and resettlement work for South Ring Expressway and Yanxiaocun public transit transfer junction had been started before identification of World Bank funded project (2011), and due diligence report (see Appendix 2) shall be submitted according to the involuntary resettlement policy of World Bank. Feasibility report has been completed for the western section of Western Wusi Road (the Fourth Road – Huangshui Road) and the reconstruction and expansion of Qaidam Road. Xining municipal government guarantees that the resettlement work involved in these related projects will be implemented according to the resettlement policies of World Bank funded project. This Policy Framework is prepared to offer guidance for subsequent land acquisition, demolition and resettlement work in the construction project of western section of Western Wusi Road (the Fourth Road – Huangshui Road) and the reconstruction and expansion project of Qaidam Road

II. General Information of the Related Projects (about Resettlement)

Table 1 Related Projects

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Amount of Land Construction Related Projects Construction Contents Acquisition & Demolition Period Reconstruction and expansion project of Road length: 1808.73m, Land acquisition: about Qaidam Road June 2014 width expanded from 54mu, demolition: about (Wuzhong Village – June 2015 20m to 40m. 22073m2 Yanxiao Village), Xining Land acquisition: 228mu; Construction project there are less buildings along of western section of Road length: 2532.26m, the line, only several small Concurrent with Western Wusi Road width: 60m. processing factories on both this Project (the Fourth Road – banks of Huangshui River at Huangshui Road) the starting point

III. Measures to Reduce Involuntary Resettlement and Land Acquisition Under Xining Urban Transit Project, the measures to avoid the involuntary resettlement caused by permanent land acquisition and temporary land occupation have been considered in selection and design of all subprojects. This Resettlement Policy Framework complies with the provisions of OP4.12 part of the operational manual Involuntary Resettlement issued by World Bank in December 2001 and also abides by Chinese laws and regulations, with overall objectives as follows: (a) Avoid and reduce potential adverse impacts, including involuntary resettlement caused by land acquisition and compensation for land acquisition during project implementation process; (b) Strengthen the monitoring and appraisal to timely discover the possible land acquisition and resettlement; (c) Some subprojects that may cause land acquisition and resettlement must be reselected and redesigned. If no resettlement plan is prepared or they are not arranged reasonably according to policy framework, these subprojects can’t obtain funds; (d) Develop measures to minimize the unavoidable adverse impacts to the environment and recover the livelihood of the affected population; (e) Define the duties of all organizations to carry out the livelihood recovery measures; the areas involved in the projects shall formulate policy guidelines for the affected individuals according to the requirements of this policy framework. IV. Policies, Laws and Regulations on Land Acquisition and Resettlement When land acquisition and resettlement can’t be avoided, the resettlement plan 130 shall contain necessary livelihood recovery measures, which must comply with the following laws, regulations and policies: (a) The expropriation of local roads shall strictly comply with the Land Administration Law of the People’s Republic of China and other related laws and regulations issued by Qinghai Province. The organization that needs land for the construction of the proposed subprojects shall file application to local land authority and obtain the use right of land by way of transfer or administrative payment; (b) Land acquisition in the proposed subprojects must follow the procedures specified in Land Administration Law of the People’s Republic of China. Village committee, local government and municipal or district land authority must define the purpose of the projects and determine the amount of land acquisition. Land authorities at all levels must guarantee the sufficient compensation for those households whose livelihood is affected by land acquisition; (c) As for the activities that are covered by the policies of land acquisition and resettlement, including civil works and resettlement work, the definition of related contents must comply with the related laws and regulations of the People’s Republic of China. (d) World Bank OP/BP4.12 must be abided by in respect of the compensation for land acquisition and during preparation and implementation of resettlement plan; (e) Policies adopted by resettlement plan. V. Resettlement and Compensation Principles The following principles will be bound with the projects: (a) Make the most efforts to avoid and decrease land acquisition and involuntary resettlement involved in the projects; (b) If land acquisition and involuntary resettlement can’t be avoided, compensation and livelihood recovery action plan for the displaced persons must be prepared; (c) Sufficient funds shall be supplied to ensure the implementation of resettlement plan; (d) The preparation and implementation of this action plan must be based on the consultation with local government and the displaced persons in respect of all the subprojects which involve resettlement and compensation; (e) Compensation shall be made according to replacement costs, not including depreciation; 131

(f) Compensation shall be made prior to land acquisition and relocation; (g) The affected persons will receive some assistance in relocation and livelihood recovery activities. (h) It shall be ensured that the living standard of the affected persons won’t be lowered after resettlement. (i) All costs relating to land acquisition and demolition will be included in project budget. VI. Organizations and Their Duties Project Office will be responsible for the planning and implementation of the projects in an overall way and the selection and implementation of project contents shall strictly comply with the resettlement action plan.

Planning and statistics team of the Project Office shall designate some persons to specially take charge of the review and management of land utilization in all subprojects. As for the land acquisition caused by the change of project design due to some reasons, the project implementation organization must observe the procedures and requirements of resettlement plan and an updated version of this plan will also be submitted to the Project Office

The resettlement caused by change of project will be implemented by the Project Office and land authority concurrently at the same level. Under the leadership of the Project Office, the implementing organizations will prepare fund allocation and implementation plan according to the policy framework, and supply resettlement manual. Meanwhile, the Project Office will also assist in fund appreciation, adopt reasonable measures, resolve problems and conduct monitoring.

Land authorities of government at all levels will manage lands according to the powers granted by the state, review and check land area and amount, carry out land registration, control land acquisition procedures and monitor the implementation of compensation measures. Only with approval of land authority, all subprojects of this Project can be included in annual investment plan.

VII. Resettlement Action Plan

For the subprojects which involve resettlement work, resettlement plan must be the essential condition to obtain the loan. For such purpose, an appraisal system shall be established to supervise annual investment plan so as to determine the subprojects that involve resettlement work.

Basic procedures of the plan include: (1) socio-economic survey at the affected area; (2) census of the households affected by land acquisition, stock land resources and other assets (including number of family members, householder, name of village, type and amount of lands to be acquired, and severity of impact); (3) preparation for resettlement measures, and compensation

132 standards based on the consultation with the affected population and the compliance with policies, laws and regulations; (4) preparation for action plan and implementation procedures.

Action plan includes: (1) description of related civil works, location and area of lands to be acquired; (2) purpose of land acquisition; (3) related policies and laws; (4) basic data (basic information about affected households); (5) compensation standard; (6) organizations, functions and duties, and staffing; (7) public participation; (8) livelihood and community impact; (9) progress of land acquisition; (10) detailed livelihood recovery measures; (11) cost budgeting and schedule; (12) supervision, monitoring and appraisal of land acquisition.

VIII. Monitoring and Appraisal

The Project Office’s implementation declaration shall include the area of land for construction and compensation standard for land acquisition and it shall be submitted for review. Monitoring staff will inspect and visit the site regularly to confirm problems and propose solutions to the Project Office.

External independent agency will be invited to monitor and appraise the land acquisition and the implementation of resettlement action plan. External independent monitoring agency shall conduct baseline survey and sampling survey prior to resettlement, monitor project progress annually, and appraise the livelihood recovery status of the displaced persons.

IX. Grievance Procedures

Compensation for land acquisition must comply with laws, respect the wishes of the affected population and encourage consultation and public participation. In the preparatory stage of land acquisition, the implementing organizations of subprojects shall, under the management of the Project Office, enter villages and visit peasants, invite village heads and peasants to participate in project appraisal and selection, and hold discussions about the location and amount of lands to be acquired, compensation standard and resettlement scheme. Land acquisition action plan can be singed finally only after consensus is reached with the displaced persons.

The Project Office shall inform the peasants whose lands will be expropriated and inform them of their rights and grievance procedures. The displaced persons can express their dissatisfaction to resettlement scheme to village committee and the village committee shall discuss about solutions with the implementing organizations immediately. The displaced persons can also lodge a complaint orally or in written form to the superior Project Office. The Project Office shall record the complaint on file and solve the problem by consulting with related organs within 10 days upon receipt of the complaint. If the grievance/dispute can’t be resolved by consultation, village committee may apply for review to competent administrative authority or file a lawsuit to the court.

The Project Office is responsible to record all grievances and resolution procedures on file.

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