Social Monitoring Report

Semi-Annual Report March 2017

PRC: Shaanxi Mountain Road Safety Demonstration Project

Prepared by Shaanxi Kexin Consultant Company for the People’s Republic of China and the Asian Development Bank.

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Shaanxi Mountain Road Safety Demonstration Project (Loan No. 3924-PRC)

External Monitoring Report for Resettlement

(Shangnan County)

(Report No.1)

Prepared for: Foreign Fund Financed Project Office of SPTD By: Shaanxi Kexin Consultant Company

March 10, 2017

Contents 1 PROJECT INTRODUCTION AND IMPLEMENTATION PROGRESS ...... 1

1.1 PROJECT OVERVIEW ...... 1 1.1.1 Shangnan County Subproject ...... 2 1.1.2 Project investment and implementation process ...... 3 1.1.3 Executing and implementing agencies ...... 4

1.2 AFFECTED AREA ...... 7

2 LA AND HD IMPACTS ...... 9

2.1 AFFECTED TYPE ...... 9

2.2 AFFECTED QUANTITY ...... 9

2.3 AFFECTED VULNERABLE GROUPS ...... 16

3 MONITORING ON PROJECT LA AND HD ...... 18

3.1 SCOPE OF MONITORING ...... 18

3.2 INTRODUCTION OF INVESTIGATION AGENCY ...... 19

3.3 INVESTIGATION METHODS ...... 20

3.4 MONITORING PROCEDURE ...... 20 3.5 MONITORING INFORMATION AND DATA ANALYSIS ...... 21 3.5.1 Introduction of socioeconomic situation of the project affected area ...... 21 3.5.2 Survey of rural women in project areas ...... 23 3.5.3 Survey of poverty in project areas ...... 24 3.5.4 Survey data of project affected villages ...... 24

4 LAND ACQUISITION, HOUSE DEMOLITION AND RESETTLEMENT ...... 28

4.1 IMPACTS AND COST OF LA & HD ...... 28

4.2 COMPENSATION STANDARD OF LA & HD ...... 28 4.2.1 Compensation Rate for Permanent Land Acquisition ...... 28 4.2.2 Compensation Rate for House Demolition ...... 29 4.2.3 Resettlement plan and economic recovery measure ...... 31

5 PUBLIC PARTICIPATION ...... 36

6 CONCLUSIONS AND SUGGESTIONS ...... 38

6.1 ASSESSMENT ON PROJECT ACQUISITION AND RESETTLEMENT ...... 38

6.2 PROBLEMS AND SUGGESTIONS ...... 39

APPENDIX 1 COMPENSATION AGREEMENT FOR LAND ACQUISITION AND DEMOLITION ...... 41

APPENDIX 2 RESETTLEMENT POLICIES OF SOUTHERN SHAANXI AREA ...... 48

APPENDIX 3 TABLE FOR PROJECT HOUSE DEMOLITION DETAILS OF SHANGNAN COUNTY ...... 51

List of tables

Table 1-1 Basic Information of Shangnan County Subproject ...... 3 Table 1-2 List of Towns and Administrative Villages affected by Road Components ...... 7 Table 2-1 Data of acquired land (2017.2)...... 11 Table 2-2 Data of demolished building ...... 12 Table 2-3 Data of Ground Ancillary Facilities (2017.2) ...... 12 Table 2-4 Data of Affected Vulnerable Groups ...... 16 Table 3-1 Social and Economic Status of Shangluo City in 2016 ...... 22 Table 3-2 Social and Economic Status of Shangnan County in 2016 ...... 22 Table 3-3 Selected Indicators of the Affected Towns ...... 23 Table 3-4 Sample Household Distribution by Road and Town2017.2 ...... 25 Table 3-5 List for Sampling Proportion (February 2017) ...... 26 Table 3-6 Survey summary sheet for basic information of sampling families (February 2017) ...... 27 Table 4-1 Expense on land acquisition and house demolition (February 2017) ...... 28 Table 4-2 Compensation Standard for the Project Land Unit ...... 29 Table 4-3 Compensation Standard for House Demolition ...... 30 Table 5-1 Public consultation and participating activity ...... 36

List of figures

Figure 1-1 Engineering Distribution Map ...... 2 Figure 1-2 Figure for organization ...... 7 Figure 5-1 Relocation site of Qingshan Town ...... 37

1 Project introduction and implementation progress 1.1 Project Overview

1. Shaanxi Province is one of the least developed provinces with per capita GDP, per capita urban income and per capita rural income at about 36.9％,84.7％ and 76.1％ of the national averages in 2015, ranking in 16th, 16th and 25th respectively among the 31 administrative provinces and regions in PRC. Fifty of Shaanxi’s 107 counties have been officially designated national poverty counties.

2. The project is located in Ankang and Shangluo, two prefecture-level cities of southern Qinba Mountain of Shaanxi. Qinba Mountain is one of the 11 poorest regions targeted for concentrated interventions under the 2011−2020 poverty reduction strategy of PRC Government. The proposed project will have direct impact on three counties (Xunyang County, Hanbin District and Shangnan County), all of which have been designated as national poverty counties since the 1990s. The overall poverty incidence of Shaanxi is 10.7%, and county/district of Xunyang, Hanbin and Shangnan being 40％, 38.6％ and 34.3% respectively. Lack of adequate transport accessibility and a poor quality of the road network are some of the major constraints for the social and economic development of the region.

3. The primary objectives of the road rehabilitation components are threefold: 1) to upgrade network capacity for an expanding transport volume in the area, 2) to provide all-weather access to the village and county roads that connect to the trunk roads, and 3) to improve the road safety condition of these rehabilitated roads and an additional 660 km of rural roads.

4. The Project will comprise four components.

5. (1) Component 1: Rehabilitation of 193km arterial highways, including 60.25 km of S102 Xunyang – Xiaohe Highway, 34.39 of G316 section from Xunyang – Ankang City Center Highway and 92.41 km S224 Shangnan County Chengguan Town – boundary of Shaanxi and Hubei provinces; This RP covers only Shangnan-Yunxian Highway. Separate RPs have been prepared for the other two highways.

6. (2) Component 2: Upgrade of 8 rural roads with the total distance of 139.656km, including three township roads in Xunyang County, Hanbin District and Shangnan County and five village roads in Xunyang County and Hanbin District. Of these, this RP covers Xianghe-Shuigou township road (rural road #8) in Shangnan County.

7. (3) Component 3: Improvement of the road safety of Component 1 and 2 and other road sections of about 660 km;

8. (4) Component 4: Capability building and agency development, with the focus on the systematic capability of Shaanxi Provincial Transport Department related to road safety.

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9. The project will benefit 1.7 million local people from the 3 project counties and districts, and many more from the neighboring provinces and counties. Among the 1.7 million beneficiaries, rural and urban residents account for 78% and 22% respectively. 1.1.1 Shangnan County Subproject

10. The Shangnan County Highway Road Subproject includes two highways – (i) rehabilitation of the S224 (provincial road) between Chengguan Town border to Yunxian County in Hubei province section (hereinafter called Shangnan-Yunxian Highway) in total of 92 km, and (ii) rehabilitation of Xianghe to Shuigou highway (rural road component, road #8, hereinafter called Xianghe-Shuigou Highway) a total of 45 km. Figure 1-1 shows the distribution of the project roads. Note: S224 (Shangnan-Yunxian Highway) and rural road #8 Xianghe-Shuigou Highway are covered by this RP.

11. Shangnan-Yunxian Highway (S224 Provincial Highway) project is located in Shangnan County with the starting point near the intersection of southeast county and G312, passing through Qingshan Town, Xianghe Town, and Weijiatai Town, and ending at the border point with Yunxian County of Hebei Province. The total length of the road is 92 km.

12. Xianghe-Shuigou Highway covers a section between Xianghe-Shuigou Town (connecting to provincial road S224) - the section in Guofenglou Town. The starting point is Xianghe Village, and the end point is Balipo village. The length is 45km. Table 1-1 summarizes the basic scope of the subproject. Figure 1-1 Engineering Distribution Map

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Table 1-1 Basic Information of Shangnan County Subproject Clas Component Project construction content Construction grade Scope of project’s impact s The project sub-component impact Reconstruction of the section area covers 5 towns starting from the county town (Chengguan, Qingshan, connecting point of national Xianghe, Fushui2 Roa road 312, most part of the Shangnan-Y Zhaochuan), 13 villages d section is located along the unxian Adopt technology (Sanjiaochi, reco original provincial road 224, Highway Zhangjiaxiang, Huayuan, running through Qingshan standard of secondary (S224 nstr Qingshan, Caojian3, Town, Xianghe Town, and expressway provincial ucti Matidian, Xianghe, Zhaochuan Town1 and ends road) Hongyu, Sanguanmiao, on at the border point with Liangchahe, Yunxian county of Hubei Xiaolingguan ,Longwo province，total length is 92 and Weijiaitai ), and km. 18,305 people, including 6,605 poor people. The impact zone covers 2 Xianghe-Shuigou Highway is Roa towns (Xianghe and a 45-km township road Xianghe-Sh d Guofenglou), 6 villages (connecting to S224 project Adopt technology uigou reco (Xianghe, Qianjiaping, road) connecting Xianghe Highway standard of forth class Lianhuatai, Yaolinghe, nstr town to Guofenglou town4. (township expressway Shuigou5, Balipo, and ucti ROW is widened from 4-4.5m road) Lianhe), and 77496 to 7.5m with improvement of on people, including 3083 the pavement. poor people.

1.1.2 Project investment and implementation process

13. Total investment of the project is CNY 538 million. In November 2015, secondary road project for S224 from county city to Weijiatai called for the bid, and construction units of each section entered the site in July 2016. The five opening bid sections belong subgrade engineering with total contract amount of CNY 136,562,585 Yuan, and have come into construction on November 5, 2016 after the written reply of general monitoring office. It is planned to be fully

1 From the end of 2015 to September 2016, there is change in the administrative division and relationship of administrative subordination of some areas in Shangnan County, and the baseline report for resettlement has been updated accordingly. By the end of 2016, the scope of new towns and villages has been determined for Shangnan County, therefore, the affected areas and quantity of the project were redescribed based on administrative divisions in the external monitoring report of resettlement. 2 At the end of 2015, original Weijiatai Town was incorporated into Zhaochuan Town. Therefore, administrative villages of original Weijiatai Town are affiliated with Zhaochuan Town for administration. 3 Original Shanghe Village was incorporated into Caojian Village. 4 At the end of 2015, original Shuigou Village was incorporated into Guofenglou Town. Therefore, administrative villages of original Shuigou Village are affiliated with Guofenglou Town for administration. 5 At the end of 2015, Taibai Village and Shuigou Village are incorporated into Shuigou Community. 6 In 2015-2016, according to the requirement of the People’s Government of Shaanxi Province on Great LA&R of South Shaanxi, part of the villagers in Guofenglou Town and Xianghe Town moved to relocation sites near the County. Hence, the township population reduced by compared with that in 2014. 3

completed on November 4, 2017 with construction period of one year. 14. By February 28, 2017, accumulated completion condition of each construction unit is as below: 15. Bid SYLJ1 (K4+901-K11+500): total length is 6.599km, contract amount is CNY 27,596,717, 221 thousand m3 of subgrade excavation and 198 thousand m3 of embankment are finished; 400m3 of retaining wall is finished, 3 culverts are constructed, and bridge pile foundation is under construction; inverted arch and cover arch have been completed, an amount of CNY 6,237,000 has been invested in the section, accounting for 22.60% of contract amount. 16. Bid SYLJ2 (K11+500-K23+500): total length is 12km, contract amount is CNY 25,712,931, 220 thousand m3 of subgrade excavation and 90 thousand m3 of embankment are finished; 3,500m3 of retaining wall is finished, 17 culverts are constructed, and 90m of the tunnel is excavated with shotcrete of 90m and inverted arch of 30m. An amount of CNY 4,381,201 has been invested in the section, accounting for 17.04% of contract amount. 17. Bid SYLJ3 (K23+500-K33+000): total length is 9.5km, contract amount is CNY 25,446,495 Yuan, 265 thousand m3 of subgrade excavation and 61 thousand m3 of embankment are finished; 1,800m3 of retaining wall is constructed, 13 culverts are constructed, and No.0 Abutment in Xiaoxigou is completed. The tunnel is 110m with inverted arch of 60m. An amount of CNY 6,716,675 Yuan has been invested in the section, accounting for 26.40% of contract amount. 18. Bid SYLJ4 (K33+000-K45+000): total length is 12km, contract amount is CNY 32,774,421, 95 thousand m3 of subgrade excavation and 30 thousand m3 of embankment are finished; 9,780m3 of C15 rubble concrete for retaining wall is constructed, 10 culverts are constructed, and 7,580m3 of mortar rubble is completed. An amount of CNY 5,711,332 Yuan has been invested in the section, accounting for 17.43% of contract amount. 19. Bid SYLJ5 (K45+000-K54+329): total length is 9.329km, contract amount is CNY 25,032,057 Yuan, 28.5 thousand m3 of subgrade excavation and 0.4 m3 of embankment are finished; 558m3 of retaining wall is constructed, 5 culverts are constructed, 10m of the tunnel is excavated with shotcrete of 9m. An amount of CNY 1,965,900 has been invested in the section, accounting for 7.85% of contract amount. 20. By February 28, 2017, CNY 25,012,000 Yuan was invested to section 1 to section 5, accounting for 18.32% of total contract amount.

1.1.3 Executing and implementing agencies

(i) Shaanxi Provincial Project Leading Group (SPPLG) and Its Office (SPPO)

21. SPPLG is the leading agency responsible comprehensively for the overall deployment of the Project and solving major issues. The group includes the Comprehensive Planning Division and Road Management Division led by a deputy director of Shaanxi Provincial Transport Department. 4

22. Shaanxi Provincial Project Management Office (SPPMO) under the administration of Foreign Funded Project Office (FFPO) of Shaanxi Provincial Transport Department is a coordinating body of Shaanxi Provincial Project Leading Group (SPPLG), which is responsible for early-stage preparation of the projects, compilation of resettlement plans and Asian Development Bank loan application process. After the implementation of the projects, it is responsible for the connection of project implementation agency and Asian Development Bank, and monitoring, coordinating, guiding and evaluating the overall implementation situation of the projects and other work arranged by Shaanxi Provincial Project Leading Group.

(ii) Shangnan Project Management Office (SCPMO)

23. Shangnan County People’s Government is the executing agency of this Subproject, and the project leading group consists of heads from relevant bureaus, including transport bureau, land and resources bureau, development and reform bureau, SCPRO, etc. SCPMO is the implementing agency of the subproject. Its office is located in Transportation Bureau of Shangnan County. It is responsible for project implementation, management and coordination. The main tasks include project quality assurance and annual planning and follow-up monitoring of completed projects, and periodically report to Shaanxi Project Management Office (SPPMO).The main responsibilities in resettlement include organizing the resettlement work of the project, developing the local policy on resettlement activities, coordinating relations among resettlement agencies at all levels, coordinating the work of the bureaus concerned at the preparation and implementation stages, and making decisions and consultation on major issues arising from construction and resettlement.

(iii) Shangnan County Project Resettlement Office (SCPRO)

24. The SCPRO, consisting of 3 persons, responsible for identifying and confirming the quantity of land acquisition and house demolition, special facilities and ground attachments, conducting the DMS and saving data; assisting in preparing the RP and implementing RP; selecting resettlement officials for operational training; organizing public consultation, and communicating resettlement policies; directing, coordinating and supervising LA and resettlement activities and progress; disbursing resettlement costs according to the agreement and handling grievances of APs; assisting and supervising the affected villages to carry out economic rehabilitation plans and ensuring the income restoration of the affected people; carrying out internal monitoring, preparing internal monitoring reports and reporting to Shangnan PMO.

(iv) Town/township Government

25. The town/township resettlement offices, headed by each Town/township leader, are comprised

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of key officials of the land and resources office, police office, civil affairs office and villages. The main responsibilities are: ‹ Participating in the survey of the subproject, and assisting in the preparation of the RP. ‹ Organizing public participation, and communicating the resettlement policies; ‹ Implementing, inspecting, monitoring and recording all resettlement activities within the town; ‹ Settling the house demolition and reconstruction; ‹ Responsible for the disbursement and management of land compensation fees; ‹ Supervision of LA, HD and house restoration; ‹ Reporting LA, HD and resettlement information to the SCPMO; ‹ Coordinating and handling conflicts and issues arising from its work.

(v) Village committees and village groups

26. The resettlement working team of a village committee or village group comprises its key community leaders and representatives of APs and with authorization of villagers’ convention. Its main responsibilities are: ‹ Participating in the socioeconomic survey and DMS; ‹ Assisting in preparing the Relocation and Resettlement Plan; ‹ Organizing public consultation, and communicating the policies on LA and HD; ‹ Organizing village meetings in discussing the proportion of compensation distribution to APs and supervision of the use of reserved funds in a village if necessary; ‹ Choosing resettlement sites and distributing housing land for relocated families; Helping APs to get house construction approvals, ‹ Organizing the implementation of agricultural (including reserved land distribution) and nonagricultural resettlement activities; ‹ Reporting the APs’ opinions and suggestions to the relevant authorities; ‹ Providing assistance to relocated households with difficulties, particularly the vulnerable families ‹ Supervising land acquisition, demolition and reconstruction for housing and ancillary facilities; ‹ Reporting the progress in land acquisition and resettlement; ‹ Preparing approval letter to confirm the facility and infrastructure restored and meet their requirement.

(vi) Internal supervision agency

27. Shangnan County Project Office set up an internal supervision office for land acquisition and resettlement, consisting of 2 persons. The duty of the office is to guarantee all the land acquisition and resettlement officers can fulfill their tasks, carry out based on the requirements of the RP, and guarantee all the affected people can get their rights and interests.

(vii) External independent monitoring and evaluation agency 6

28. The owner has engaged Shaanxi Kexin Consultant Company as external M&E agency. The main responsibility includes: ‹ Monitoring all aspects of resettlement planning and implementation, as an independent M&E agency, conducting base-line surveys, monitoring and evaluating the effectiveness of resettlement and the social adaptability of the APs, including women and vulnerable APs, and submitting M&E reports to SPPMO and ADB semi-annually; ‹ Providing technical advice to the Resettlement Office in data collection and processing.

Figure 1-2 Figure for organization 1.2 Affected area

29. The impact of land acquisition and demolition of the project involves 7 towns and 19 administrative villages. See Table 1-2 for reference.

Table 1-2 List of Towns and Administrative Villages affected by Road Components

Construction Name of town Name of village/ neighborhood committee contents affected Chengguan, Sanjiaochi, Zhangjiagang, Huayuan, Qingshan, Shangnan-Yunxian Qingshang, Caojian, Matidian, Xianghe, Hongyu, Highway Xianghe,Fushui and Sanguanmiao, Liangchahe, Xiaolingguan, Zhaochuan Weijiatai，Longwo

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Construction Name of town Name of village/ neighborhood committee contents affected Xianghe-Shuigou Xianghe and Qianjiaping, Lianghuatai, Yaolinghe, Shuigou, Highway Guofenglou Balipo, Lianhe Total 6 19 Note: LA&R impacts of Shangyun Road and Xiangshui Road equally refers to Xianghe Town.

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2 LA and HD Impacts

30. The project refers to road construction, and the layout is characterized by linear distribution. Therefore, the project land appears as vast affected area and sporadic land occupation. The affect of LA&R is relatively scattered, and the quantity of LA&R is not huge. Project LA&R started to be implemented in August 2016. Relocation agency of project LA&R counted and registered the affected quantity and varieties of the project, and it has been confirmed in baseline report of resettlement for project. In February 2017, external monitoring agency of project resettlement monitored the impacts of land acquisition and house demolition of project for second time and updated and confirmed the impacts of land acquisition and house demoltion. See details in table 2-1~table 2-6. 2.1 Affected type

31. (1) Land: LA&R types of this project are classified into: irrigable land, dry ground, homestead, hilly land, and woodland.

32. (2) House: demolished houses of this subproject include the following four types: brick structure, brick-wood structure, civil structure, simple structure.

33. (3) Housing attachments: enclosure, toilet, archway, breeding house, etc.

34. (4) Ground attachments: include fruit tree, timber tree, nursery, adopting mu as compensation calculation unit.

35. (5) Special facilities are mainly composed of the following five types: infrastructure, water conservancy facilities, communication facilities, electricity supply facilities, and traffic facilities. 2.2 Affected quantity

36. In this subproject, a total of 507.98 mu of land will be permanently acquired, including 3.1 mu of irrigable land, 168.02 mu of dry ground, 20.54 mu of hilly land, 42.09 mu of homestead, 270.93 mu of forest land, and 3.3 mu of waste land, of which, 5.95 mu is state-owned land acquisition and 502.03 mu (including 489.64 mu of collective land acquisition for Shangnan-Yunxian Highway and 12.39 mu of collective land acquisition for Xianghe-Shuigou Highway) is collectively-owned land acquisition. Temporary land occupation is not involved in the subproject. See Table 2-1 for reference.

37. The subproject will involve 19,388.13 m2 of building demolition, including 12,004.7 m2 brick concrete building, 2,109.15 m2 of brick-wood buildings, and 5,274.28 m2 earth wood housing. Only Shangyun Road is affected by HD, and Xiangshui Road is not affected by HD. See Table 2-2 for reference.

38. According to the survey, during the implementation of this subproject, 6,547 persons in 1,622 households are affected by LA, including 6487 villagers in 1598 households, 60 government

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officers in 24 households. Meanwhile, 587 persons in 146 households are affected by LA and HD, and a total of 2 government officers in 1 household are affected by LA and HD.

39. Ground attachments include ground structures, woods (arboretum) and etc. Ground structures include enclosure, stable, tomb, well, pool and other structures. Woods (arboretum) include landscape trees, timber woods, arboretum and nursery, etc. Due to the large number of trees in arboretum, area will serve as the calculating unit of compensation cost.

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Table 2-1 Data of acquired land (2017.2)

Village Permanent land acquisitionmu Acquisition Road Town committee/co Irrigable Dry Hilly Home Forestl Waste expenditure AHs APs Subtotal mmunity land ground land stead and land (CNY'0000) Zhangjiagang 0 5.45 0 2.88 1.18 0 9.51 20.70 67 265 Chengguan Sanjiaochi 0 35.39 0 6.51 60.87 0 102.77 133.56 102 405 Matidian 0 11.04 2.57 0.92 19.24 0 33.77 42.37 104 418 Huayuan 0 17.87 0.36 1.67 12.68 0 32.58 55.20 54 218 Qingshan Qingshan 2.3 6.19 0.64 3.92 4.8 0 17.85 34.36 62 256 Caojian 0.8 15.8 2.04 0.36 29.41 0 48.41 59.86 65 258 Shangn state-owned 0 0.69 0 0 0 0 0.69 0 7 15 an-Yun Sanguanmiao 0 16.77 6.06 8.25 44.9 0 75.98 90.21 231 926 xian highway Xiaolingguan 0 8.59 3.06 3.52 8.94 0 24.11 37.54 71 285 Hongyu 0 5.99 0.13 5.08 12.05 0 23.25 32.59 97 384 Xianghe Xianghe 0 12.76 0.93 2.6 15.43 0 31.72 46.58 71 308 Liangchahe 0 4.13 0.27 2.54 16.84 0 23.78 24.78 60 240 state-owned 0 5.26 0 0 0 0 5.26 0 17 45 Fushui Longwo 0 0 0 0 8.82 0 8.82 4.41 56 225 Zhaochuan Weijiatai 0 16.83 4.48 3.56 32.22 0 57.09 71.57 227 901 Subtotal 13 3.1 162.76 20.54 41.81 267.38 0 495.59 653.74 1,291 5,149 Xianghe Lianhuatai 0 0.09 0 0.05 0 1.80 1.94 0.97 10 41 Yaolinghe 0 0.35 0 0 3.55 1.50 5.40 3.18 23 93 Xaingsh Shuigou 0 2.45 0 0.09 0 0 2.54 6.33 136 575 ui Guofenglou Balipo 0 1.24 0 0.13 0 0 1.37 3.39 62 267 highway Qianjiaping 0 0.69 0 0.02 0 0 0.71 1.77 76 319 Lianhe 0 0.45 0 0 0 0 0.45 1.13 24 103 Subtotal 6 0 5.26 0 0.28 3.55 3.30 12.39 16.72 331 1,398 Total 6 19 3.1 168.02 20.54 42.09 270.93 3.30 507.98 670.45 1,622* 6,547

* Compared with the resettlement plan, the quantity of land acquisition is basically same. The number of households affected by land acquisition has increased, that’s because in the original resettlement plan those who lived together were thought to be one household, but in the baseline survey, the household registration of a lot of those who lived together are actually separated, the original one affected household may now be three households, or even five households. Therefore, the number of affected households increased.

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Table 2-2 Data of demolished building

House demolition (㎡) Affected by HD Road Town Village Brick & Brick-wo Civil Subtotal Hs Ps concrete od structure Zhangjiagang 1,128.22 65.52 172.78 1,366.52 6 26 Chengguan Sanjiaochi 2,210.86 112.11 772.10 3,095.07 22 92 Huayuan 730.64 65 0 795.64 5 25 Qingshan 711.54 643.49 508.85 1,863.88 14 60 Shan Qingshan gnan- Caojian 24.42 62.58 85.32 172.32 4 16 Yunxi Matidian 210.55 146.63 131.48 488.66 6 27 an Sanguanmiao 2,001.06 445.32 1,473.86 3,920.24 23 78 highw Xiaolingguan 1,094.02 160.06 417.34 1,671.42 14 50 ay Xianghe Hongyu 2,146.59 223.90 45.80 2,416.29 15 69 Xianghe 135.95 144.40 417.48 697.83 9 35 Liangchahe 1,104.12 0 104.13 1,208.25 6 21 Zhaochuan Weijiatai 506.73 40.14 1,145.14 1,692.01 22 88 TOTAL 12,004.7 2,109.15 5,274.28 19,388.13 146 587 Proportion % 59.74 10.76 26.53 100 \ \

Table 2-3 Data of Ground Ancillary Facilities (2017.2)

Compensati Num Total price Town Type Project Unit on standard ber (CNY) (CNY) Fushu Ground Overground tomb per 500 5 2500 i structures Asbestos mat m2 80 599.19 47935.2 roof Color steel tile m2 100 295.98 29598 Bunkhouse roof Double m2 120 56.87 6824.4 insulating layer Debris shed m2 60 44.18 2650.8 Enclosure Brick enclosure m 120 203.4 24408 Cylinder per 50 1 50 Covered cob m2 30 34.72 1041.6 wall Covered brick Toilet m2 80 93.88 7510.4 Cheng Ground wall guan structures Covered brick-mixed m2 120 80.37 9644.4 structure Timber frame per 400 4 1600 Stone structure per 500 5 2500 Pigsty Brick structure per 700 38 26600 Shed per 100 41 4100 Tap water point 150 23 3450 Drinking water 100 Water resource per 14 14000 well 0 Pool per 200 14 2800 Overground tomb per 500 56 28000 Brick tomb per 200 6 12000 12

Compensati Num Total price Town Type Project Unit on standard ber (CNY) (CNY) 0 Tombstone archway per 300 2 600 DBH below 5cm strain 30 845 25350 Nontimber DBH 5-10cm strain 100 478 47800 (landscape DBH 11-20cm strain 300 234 70200 trees) DBH >=21cm strain 500 16 8000 DBH 5-10cm strain 20 510 10200 Wood DBH 11-20cm strain 30 351 10530 (forest) Timber forest DBH 21-30cm strain 40 74 2960 DBH >=31cm strain 50 41 2050 Forest (include Timber forest, 200 bamboo mu 679.6 1359200 bamboo forest 0 garden) Mushroom greenhouse m2 20 599.43 11988.6 Concrete ground m2 50 1676.24 83812 Sweet potato cellar per 600 4 2400 Sand piling enrockment m3 10 56.28 562.8 Reservoir m3 500 21 10500 Others 200 Medical materials m2 10 20000 0 500 Tea garden mu 0.6 3000 0 Flower bed m2 30 20.8 624 Asbestos mat m2 80 185.21 14816.8 roof Color steel tile m2 100 154.18 15418 Bunkhouse roof Double insulting m2 120 125.92 15110.4 layer Debris shed m2 60 29.73 1783.8 Foundations Dry stone m2 80 50.2 4016 Enclosure Brick enclosure m 120 28.7 3444 Cylinder per 50 1 50 Covered cob m2 30 47.74 1432.2 wall Covered brick Toilet m2 80 76.48 6118.4 Ground wall structures Covered Qings brick-mixed m2 120 69.42 8330.4 han structure Timber frame per 400 2 800 Stone structure per 500 2 1000 Pigsty Brick structure per 700 29 20300 Shed per 100 17 1700 Tap water point 150 25 3750 Drinking water 100 Water resource per 8 8000 well 0 Pool per 200 16 3200 Underground tomb per 300 4 1200 Overground tomb per 500 46 23000 Tombstone per 300 1 300 Commercial Ф<5cm strain 30 375 11250 Wood wood 5<Ф<10cm strain 100 139 13900 (forest) (landscape 11<Ф<20cm strain 300 154 46200 trees) Ф>=21cm strain 500 29 14500 13

Compensati Num Total price Town Type Project Unit on standard ber (CNY) (CNY) 5<Ф<10cm strain 20 798 15960 11<Ф<20cm strain 30 414 12420 Timber forest 21<Ф<30cm strain 40 101 4040 Ф>=31cm strain 50 47 2350 Forest (include Timber forest, 200 bamboo mu 0.47 940 bamboo forest 0 garden) Mushroom greenhouse m2 20 2146.2 42924 Concrete ground m2 50 1712.54 85627 Sweet potato cellar per 600 15 9000 Others Sand piling enrockment m3 10 20.7 207 Water pipe m 5 4900 24500 200 Peony medical garden mu 77.58 155160 0 Asbestos mat m2 80 25.65 2052 roof Bunkhouse Color steel tile m2 100 12.2 1220 roof Debris shed m2 60 114.07 6844.2 Brick enclosure M 120 11.4 1368 Simple M 200 3 600 constructed Covered cob m2 30 33.3 999 wall Enclosure Covered brick m2 80 79.85 6388 wall Ground Covered structures brick-mixed m2 120 36.84 4420.8 structure Timber frame per 400 1 400 Stone structure per 500 3 1500 Pigsty Brick structure per 700 11 7700 Shed per 100 6 600 Tap water point 150 28 4200 Xiang Pool per 200 28 5600 he Overground Water resource per 500 20 10000 tomb Tombstone per 300 3 900 archway Commercial Ф<5cm strain 30 263 7890 wood 5<Ф<10cm strain 100 108 10800 (landscape 11<Ф<20cm strain 300 28 8400 trees) Ф>=21cm strain 20 398 7960 Wood 5<Ф<10cm strain 30 90 2700 (forest) Timber forest 11<Ф<20cm Strain 40 45 1800 21<Ф<30cm strain 50 11 550 Forest (include Timber forest, 200 bamboo mu 276.8 553600 bamboo forest 0 garden) Mushroom greenhouse m2 20 813.82 16276.4 Concrete ground m2 50 684.35 34217.5 Other Sweet potato cellar per 600 2 1200 Sand piling enrockment m3 10 63.77 637.7 Water pipe M 5 11068 55340

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Compensati Num Total price Town Type Project Unit on standard ber (CNY) (CNY) Asbestos mat m2 80 125.89 10071.2 roof Bunkhouse Double insulting m2 120 15.1 1812 layer Debris shed m2 60 37.6 2256 Enclosure Brick Enclosure M 120 273.7 32844 Cylinder per 50 3 150 Simple m2 200 7 1400 constructed Covered cob m2 30 56.2 1686 Ground wall Toilet structures Covered brick m2 80 80.71 6456.8 wall Stone structure per 500 12 6000 Brick structure per 700 17 11900 Shed per 100 13 1300 Archway Brick structure m2 500 61.13 30565 Tap water point 150 19 2850 Drinking water 100 Water resource per 2 2000 well 0 Pool per 200 21 4200 Xiang Overground tomb per 500 31 15500 he Commercial Ф<5cm strain 30 364 10920 wood 5<Ф<10cm Strain 100 320 32000 (landscape 11<Ф<20cm strain 300 81 24300 trees) Ф>=21cm strain 500 20 10000 5<Ф<10cm strain 20 1701 34020 Wood 11<Ф<20cm strain 30 1245 37350 (forest) Timber forest 21<Ф<30cm strain 40 343 13720 Ф>=31cm strain 50 61 3050 Forest (include Timber forest, 200 bamboo mu 778.2 1556400 bamboo forest 0 garden) Mushroom greenhouse m2 20 156.8 3136 Concrete ground m2 50 3748.03 187401.5 Sweet potato cellar per 600 1 600 Sand piling enrockment m3 10 5.93 59.3 Reservoir m3 500 3.6 1800 Others Water pipe m 5 2300 11500 500 Tea garden mu 7 35000 0 150 Commercial plants m2 20 30000 0 Asbestos mat m2 80 87.37 6989.6 roof Bunkhouse Color steel tile m2 100 94.9 9490 roof Debris shed m2 60 26.92 1615.2 Zhaoc Ground Brick enclosure m 120 77.8 9336 huan structures Covered cob m2 30 20.1 603 wall Enclosure Covered brick m2 80 33.4 2672 wall Stone structure per 500 3 1500 Brick structure per 700 9 6300 15

Compensati Num Total price Town Type Project Unit on standard ber (CNY) (CNY) Shed per 100 8 800 Tap water point 150 13 1950 Drinking water 100 Water resource per 1 1000 well 0 Pool per 200 16 3200 Overground tomb per 500 4 2000 Commercial Ф<5cm strain 30 344 10320 wood 5<Ф<10cm strain 100 99 9900 (landscape 11<Ф<20cm strain 300 63 18900 trees) Ф>=21cm strain 500 10 5000 5<Ф<10cm strain 20 261 5220 Wood 11<Ф<20cm strain 30 296 8880 (forest) Timber forest 21<Ф<30cm strain 40 71 2840 Ф>=31cm strain 50 36 1800 Forest (include Timber forest, 200 bamboo mu 1324.7 2649400 bamboo forest 0 garden) Concrete ground m2 50 1655.02 82751 Sand piling enrockment m3 10 12 120 Others Water pipe m 5 8500 42500 Flower bed m2 30 61.86 1855.8 Total 8235092.2

2.3 Affected vulnerable groups

40. The vulnerable groups affected by the project mainly include the elderly with no other supporting family members, single-mother families, orphans, family under MLSS, the disabled, poverty families, etc. A total of 462 households with 1,693 people of vulnerable groups are affected by HD. See Table 2-4 for the definition standards of vulnerable groups and the number of vulnerable group households. Table 2-4 Data of Affected Vulnerable Groups

Shangnan-Yunxian Highway Type Definition standard (HH) Annual per capital income lower Very poor under MLSS 32 than CNY1560. Single-parent with children under Single-parent family 14 years old, family without father 44 or mother Family with women as primary labors, without young and Women lead family 48 middle-aged men labors (18-55 years old) The elderly over 60 years old Elder family without children, relatives and other 55 supporting members Family with the members identified The disabled according to national standard of 46 level I or level II disabled Family with member losing work Family with long-term capacity due to disease or need 237 patients long-term medical care 16

Shangnan-Yunxian Highway Type Definition standard (HH) Total 462 Note: above aggregated and summary data has excluded repetitive computation, according to poverty standard that Shangnan County annual income is less than CNY 3015 in 2016, 462 households with 1,693 people belonging to vulnerable groups are poor households. 41. According to the survey, poverty causes include the aspects of: (1) Harsh living and production conditions due to geographical location, such as high mountain, poor soil, cold and dry weather; (2) low value-added grain dominated production model due to remote geographical location and poor road condition; (3) Lack of skill – limiting access as migrant labor seeking outside non-farming waged jobs; (4) lack of information; and (5) illness or disability or too senior.(6) Because the kids attend school, tuition fees and living expenses cause a huge burden to the families

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3 Monitoring on project LA and HD

42. In July 2016, project resettlement monitoring agreement was signed, and monitoring on land acquisition and house demolition work was started. From August to September 2016, monitoring personnel took monitoring of Phase I for the measurement for project impacts, each link of payment and compensation for land acquisition and house demolition of project and signing process of agreement between parties. From February to March 2017, personnel unit took monitoring of Phase II to monitor project affected area. 19 administrative villages in 6 towns affected by the project are totally involved in the scope of external monitoring of both two phases. 3.1 Scope of monitoring

43. The monitoring of the subproject contains three parts: (1) land acquisition, house demolition and resident relocation impact survey; (2) The project affected area socio-economic survey; (3) survey of living standard of the affected persons.

44. (1) The main contents of land acquisition, house demolition and resident relocation impacts survey are: a. The quantity of the project occupied land, house demolition and all kinds of special-purpose facilities, the number of affected individuals caused by the Project; b. The quality, output per mu and output value of occupied farmland of the project; compensation of land acquisition; c. The construction value and replacement value of demolished buildings of the subproject; compensation of house demolition; d. The economic situation of the affected households; e. The economic situation of the affected villages; f. The duration of the land acquisition, house demolition and resident relocation of the affected individuals; g. The opinions and attitude of the project, LA&R policies, and economic rehabilitation policies given by affected individuals; h. The opinions and attitude to the project construction of the public.

45. (2) The main contents of the project affected area socio-economic survey are as follows: a. Basic information of the project implementation area; b. Main economic index in the above affected area; c. The impoverished population distribution in the above affected area; d. The living condition of minority nationality and women in the above affected area;

46. (3) The main contents of the affected individuals’ living condition are as follows: a. The information of the affected villages, including population, farmland, per capita income;

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b. The information of the sample households, including the percentage of income from planting, breeding, sideline and industry; c. The working construction and average property of the sample households; d. The formulation and implementation of the economic resume plan. 3.2 Introduction of investigation agency

47. Monitoring of the project affected area is undertaken by Shaanxi Kexin Consultant Company entrusted by Shangnan County Traffic Transport Bureau, Shaanxi Province. Shaanxi Kexin Consultant Company experiences in preparation for resettlement plan and external monitoring of loan project of Asian Development Bank/World Bank, including: ‹ 2000.6-2007.7 Loan project of Asian Development Bank-land acquisition, house demolition, poverty reduction, social investigation and external monitoring of Shaanxi highway development project; ‹ 2001.10-2003.12 Loan project of Asian Development Bank-land acquisition, house demolition, poverty reduction and social investigation of Shanxi highway development project; preparation of Prospectus on Land Acquisition and Demolition; ‹ 2002.6-2002.10 Loan project of World Bank-evaluation report on land acquisition, house demolition and resident relocation of Shaanxi poor rural development; ‹ 2002.6-2003.12 Loan project of Asian Development Bank-preparation for prospectus on land acquisition, house demolition, resident relocation, poverty reduction, social investigation, land acquisition, house demolition and resident relocation of Urban Transport Project of Xi’an City (3rd Ring system); ‹ 2007.5-2008.12 Loan project of Asian Development Bank, key construction project of “Eleventh five-year” in Shaanxi province-preparation for prospectus on emigration, land acquisition, house demolition and resident relocation of Qinling National Wild Botanic Garden Project; ; ‹ 2007.7- bear the loan project of World Bank-monitoring task of development indicator of Shaanxi Ankang road development; ‹ 2007.12- Loan project of World Bank-external monitoring of land acquisition, house demolition and resident relocation of Shaanxi Ankang road development project ( Ankang to Sichuan-Shaanxi expressway); ‹ 2008.4-2009.4 Loan project of World Bank-study on social economic impact evaluation of Shaanxi Ankang local road development project; ‹ 2009.5-2010.7 Loan project of World Bank-monitoring evaluation on resident relocation of Jiangxi Shihutang Navigation and Hydro-power Complex Project (Cooperative project); ‹ 2010.6-2011.7 Preparation of prospectus on land acquisition, house demolition and resident relocation of “Shaanxi Emergency Assistance for Wenchuan Earthquake Reconstruction Project” (loan project of Asian Development Bank).

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‹ 2010.7-2012.12 Preparation of prospectus on land acquisition, house demolition and resident relocation of “Xi’an Urban Road Network Improvement Project” (loan project of Asian Development Bank). ‹ 2013.1-2015.7 Preparation of monitoring report on land acquisition, house demolition and resident relocation of “Xi’an Urban Road Network Improvement Project” (loan project of Asian Development Bank).

48. Besides the above work, every year the consultant expert will hand in some monitoring and evaluating reports to World Bank and ADB. The personnel receive affirm and appraise from the owners, World Bank and Asian Development Bank. The expert group owns more than 20 consultant experts and information investigators, among whom 10 have advanced title. At present, Shaanxi Kexin Consultant Company has become a famous consulting agency on land acquisition, house demolition and resettlement in northwest of China. 3.3 Investigation methods

49. The interactive investigation method, which becomes popular in the world recently and is outstanding characteristics of the investigation of the project, was adopted in the project. Both the interest-relevant and non-interest-relevant took part in the investigation. They controlled and analyzed the content, progress and result of the investigation. Their participation enforced the objection, systemization, completion and validity of the investigation, made the interest-relevant better understand the project, and relieved the negative influence of the implementation. So, their participation is significant to the implementation of the project. The main procedure and methods of the investigation are as follows:

50. (1) According to the requirement of interactive investigation, one main procedure was to set up a consulting committee, which consisted of representative of the project implementation organ, local government officers in the project area, representatives of the affected villagers, representatives of the communities in the project area, and independent experts. The consulting committee can not only give advice to the content, procedure, and progress of the investigation, but also take part in the special investigation and daily investigation. Because some members of the consulting committee live in the project area, they can carry on lasting, close and deep investigation, which avoided the possible mistakes of the data of the investigation.

51. (2) The application of the traditional survey methods: field work, household investigation, villager conference, visiting relevant bureaus in charge looking up statistics, local chronicles and laws. 3.4 Monitoring procedure

52. Resettlement monitoring agreement of the subproject was signed, and project land acquisition and house demolition work started in July 2016. From September 2016, monitoring personnel 20

retrospectively monitored the measurement of resettlement impacts and agreements signing process between parties, and tracked and monitored each link of payment and compensation for land acquisition and house demolition of project. From February to March 2017, personnel unit took monitoring of Phase II for project affected area. 19 administrative villages affected by the project are totally involved. Meanwhile, families in 10 villages (410 households) affected by land acquisition and house demolition selected from external monitoring of Phase I were tracked for monitoring. The monitoring personnel conducted follow-up survey on the economic situation and living and production situation of the above villages and the sample households in the project affected area. The contents of the monitoring include population, land, households of all the villages, and the industry structure, economic advantage and disadvantage, the impact of LA&R, and the economic rehabilitation measures in the following three years, and improved economic recovery plan.

53. Meanwhile, the monitoring personnel held a systematic survey on the socioeconomic development in the affected area, and held a discussion with the relevant department of the local government. 3.5 Monitoring information and data analysis 3.5.1 Introduction of socioeconomic situation of the project affected area

1) Socioeconomic Profile of Shangluo City

54. Shangluo City of Shaanxi Province is located at the southern foot of east section of Qinling Mountains and at the junction of three provinces of Hubei, Henan and Shaanxi. It is named after Shangshan Mountain and Luoshui River within its territory. Shangluo City administers 1 district and 6 counties, totaling 163 towns, 912 villages and an area of 19,300 km2 and a population of 251,010,000. 55. In 2016, GDP of Shangluo City reached to CNY 69.93 billion, increased by 10% compared with the previous year. Of which, GDP of primary industry is CNY 9.665 billion, increasing by 3.7%; that of secondary industry is CNY 37.179 billion, increasing by 12.9%; that of tertiary industry is CNY 23.086 billion, increasing by 8.4%. General financial revenue of the whole city is CNY4.293 billion, and the local financial revenue is CNY 2.677 billion, respectively increasing by 9.9% and 10.2% on the previous year. Urban per capita disposable income is CNY 25,468 and rural per capita net income is CNY 8,358 with year-on-year growth of 8.3% and 8.5% respectively, for details see table 3-1.

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Table 3-1 Social and Economic Status of Shangluo City in 2016

No. Item Unit Shangluo City 1 Land area km2 19,300 1.1 Cultivated land area 10,000mu 293.56 2 Population 10000Person 251.3 2.1 Agricultural population 10000Person 122.36 2.2 Non-agricultural population 10000Perdons 128.94 3 GDP CNY 100 million 699.3 3.1 Primary industry CNY 100 million 96.65 3.2 Secondary industry CNY 100 million 371.79 3.3 Tertiary industry CNY 100 million 230.86 3.4 Per capita GDP CNY/person 27,827 4 Urban per capita disposable income CNY/person 25,468 5 Rural per capita net income CNY/person 8,538 Source: 2016 statistical bulletin and yearbook of Shaanxi province and Shangluo City.

2) Socioeconomic profile of Shangnan County

56. Shangnan County is located at the junction of 8 counties in Hubei, Henan and Shaanxi Provinces, and is the southeast portal of Shaanxi. It covers an area of 2,307 km2. The County administers 10 towns, totaling 101 villages and 23 communities, with the population of 245,900, of which, agricultural population is 127,000 mu, and cultivated land is 195,000 mu. Shangnan County has a long history with abundant resources of biodiversity, minerals, tourism and hydro energy. The forest coverage rate is 62.5%. It has been successively named as “Home of Chinese Tea” and “Top 100 Counties of Tea Production”; it has 1,192 kinds of herb medicinal plants and is reputed as “natural herbal medicine hub”. Shangnan has comparatively perfect infrastructures, and is located at Qinling-Bashan Mountains. The basic geographical landform in Shangnan is shallow mountains and hills. Due to poor transport conditions, its social and economic development is restricted. Shangnan is l identified as a national level poverty-stricken county. 57. In 2016, it achieved GDP of CNY 7.632 billion, increasing by 9.3% compared to 2015. The total investment in fixed assets was CNY 12.207 billion, an increase of 30.1%; the total retail sales of consumer goods was CNY 1.57 billion, up by 13.5%; the general financial revenue and local financial revenue was CNY 397 million, an decrease of 12.6%, the general local budget revenue was CNY 285 million, reducing by 17.3% in 2015. According to permanent residence, the urban per capita annual disposable income was CNY 25,215, an increase of 8.5%; the rural per capita net income increased by 8.8% to CNY 8,420. See table 3-2 for details. Table 3-2 Social and Economic Status of Shangnan County in 2016

No. Item Unit Shangnan County 1 Land area km2 2,307 1.1 Cultivated land area 10,000mu 19.5 2 Population (Changzhurenkou) 10000Person 24.61 2.1 Agricultural population 10000Person 12.71 22

No. Item Unit Shangnan County 2.2 Non-agricultural population 10000Perdons 11.9 3 GDP CNY 100 million Yuan 76.32 3.1 Primary industry CNY 100 million Yuan 12.32 3.2 Secondary industry CNY 100 million Yuan 39.68 3.3 Tertiary industry CNY 100 million Yuan 24.32 3.4 Per capita GDP Yuan/person 31,012 4 Urban per capita disposable income Yuan/person 25,215 5 Rural per capita net income Yuan/person 8,420 Source: 2016 statistical bulletin and yearbook of Shaanxi province and Shangnan town. 3Socioeconomic profile of affected townships and villages

58. 6 town/townships in Shangnan County of Shangluo City are involved in the project LA, of which, Shangyun Road Project affects Chenguan Town, Qingshan Town, Xianghe Town, Zhaochuan Town and Fushui Town; Xiangshui Road affects Xianghe Town and Guofenglou Town. The total population of the 6 townships is 261,202 people with 61,430 households having a rural labor force of 72,843. (See Table 3-3) Table 3-3 Selected Indicators of the Affected Towns

Rural Rural per Per capita Populatio actual Cultivated HH capita annual Town HHs cultivate n land (mu) Size net income labor land (mu) (CNY) (person) Chenggua 34,228 162,320 21,990 31,001 8,755 n 4.74 0.19 Qingshan 2,938 10,889 7221 15,450 3.71 1.42 7,668 Xianghe 5,079 20,049 1,0793 22,283 3.95 1.11 7,993 Fushui 6,134 21,080 9,870 16,150 3.44 0.77 8,504 Zhaochuan 4,907 18,080 10,025 28,226 3.68 1.56 7,200 Guofenglo 7,723 8,144 28,784 12,944 48,668 u 3.53 1.69 Total 61,430 261,202 72,843 161,778 4.25 0.62 8,461 Data source: Survey on impacts on socio-economics and physical impacts in February 2017. 3.5.2 Survey of rural women in project areas

59. In 2015，the proportion of female population was 47.9% in Shangnan, of which the majority was rural women accounting for about 65.9% of total female population. Women are playing important roles in agricultural sector as well as rural household development. 60. Based on the Baseline survey, there are differences in the education level between women and men. Specifically, 23% of female respondents are in the no-schooling category, higher than male respondents (11%). Similarly, female respondents with 7~9 years of education (26%), is

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lower than for males (37%), and female respondents with 10-12 years of education (3%), is lower than for males (8%). However, 49% female obtained primary education, higher than that of men (48%). 61. Most respondents were farmers with 65% of females and 58% of males involved in agriculture on their farmland. Both long-term and seasonal migrant laborers were mostly men. 10% of males were engaged in the long-term migrant labor compared to 4% for women. 22% of men were seasonal migrant labors against only 7% of women. Women were often left at home both for cultivating household land and taking care of household members. 62. Women were 100% responsible for household work. The survey indicated that there were slightly more females running small businesses than men. However, of the respondents, only 1.5% of females were village cadre compared to males (5.1%), indicating that women’s participation in decision-making at village level was lower than for men. 63. Male still plays a leading role in 85% families. In many cases, the vast majority of families is based on the form of “men outside, women inside, men manages great event, and women manages small matter” to make decisions. In terms of investment decision-making, such purchasing car, house or opening a shop, all interviewees indicate that man has more experience and knowledge than woman to make decisions. It is the responsibilities of house owners in these very important aspects of family decision, such as renting land and borrowing or lending money, and man also takes a leading role in this aspect. In other family life such as household savings, purchase of television, furniture, washing machine, electric cooker and other durable consumer goods and daily consumables, both man and woman will share the common right to make decision, however, woman has the higher dominant power. Woman is less than man in the participation of community decision-making because there are less female members in decision-making organ. In 10 villages being investigated, proportion of woman accounts for less than 10% in village committee. 3.5.3 Survey of poverty in project areas

64. Because impoverished people and its occurrence rate in China, Shaanxi Province and Shangnan County have not been published, therefore, real-time data and analysis on impoverished people of the project are not involved in the report. Hence, contents for this part will be updated in the next external monitoring report after acquiring precise data.

3.5.4 Survey data of project affected villages

A. Socio-economic Surveys

65. The project road traverses 19 administrative villages/commuities of the 6 affected townships. As shown in Table 3-4, the average household size in affected village is 2.88~3.94 people, per capita cultivated land is 0.40~1.75 mu, per capita annual income is CNY 6,000~9,700. The conventional agricultural crops are mainly corn and wheat. According to the survey, the income

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source of villagers in the project area mainly comes from secondary and tertiary industry. Table 3-4 Sample Household Distribution by Road and Town2017.2

Per Rural net Cultivate Populati HH capita income Road Town/township Village HH Labor d on size cultivate (CNY/pers land(mu) d land on/year)

Zhangjiagang 434 1,611 1,000 1,406 3.71 0.87 9,107 Chengguan Sanjiaochi 510 1,942 1,100 1,396 3.81 0.72 8,316 Fushui Longwo 550 2,020 1,213 2,484 3.67 1.23 8,620 Huayuan 562 2,019 768 1,300 3.59 0.64 7,203 Qingshan 505 1,929 745 780 3.82 0.40 7,835 Qingshan Shangnan- Caojian 419 1,547 667 2,348 3.69 1.52 8,026 Yunxian Matidian 623 1,802 690 1,500 2.89 0.83 7,314 Highway Xianghe 307 1,212 605 1,099 3.95 0.91 9,608 Hongyun 380 1,402 589 1,672 3.69 1.19 5,956 Xianghe Sanguanmiao 312 1,163 714 1,123 3.73 0.97 6,412 Liangchahe 310 1,150 567 1,705 3.71 1.48 6,020 Xiaolingguan 347 1,161 589 1,267 3.35 1.09 6,533 Zhaochuan Weijiatai 419 1,582 980 2,773 3.78 1.75 6,871 Sub total 5 13 5,678 20,540 10,227 20,853 3.62 1.02 7,610 Xianghe Lianhuatai 386 1,187 628 1,275 3.08 1.07 7,452 Yaolinghe 430 1,503 681 1,388 3.50 0.92 6,623 Xianghe-S Shuigou 440 1,582 885 1,691 3.60 1.07 6,805 huigou Goufenglou Balipo 285 1,104 563 1,119 3.87 1.01 7,301 Highway Qianjiaping 316 1,189 646 1,182 3.76 0.99 7,250 Lianhe 260 943 577 971 3.63 1.03 6,025 Subtotal 2 6 2,117 7,508 3,980 7,626 3.55 1.02 6,916 total 6 19 7,795 28,048 14,207 28,479 3.60 1.02 7,425 Data source: Survey on impacts on socio-economics and physical impacts in February 2017.

B. The data of Survey sample

66. Surveyed villages cover 6 towns affected by land acquisition and house demolition of Shangnan subproject, and 10 sample villages of sampling household, including 8 branch roads (Shangnan to Yunxian County road), including Zhangjiagang Village and Sanjiachi Village of Chengguan Town; Hongyu Village, Xianghe Village and Sanguanmiao Village of Xianghe Town; Weijiatai Village of Zhaochuan Town; Qingshan Community, Caojian Village of Qingshan Town; Longwo Village of Fushui Town There are two township roads, which respectively are Yaolinghe Village and Shuigou Community of Guofenglou Town. Sampling survey households amount to 410, 13~100 households affected by land acquisition and house demolition of project are arranged in each village, with a total of 45.25% in affected household of sample village. There are 906 households affected by land acquisition and house demolition of project in 10 sample villages, and sample villages affected by project land acquisition and house demolition is 55.9% of its total households. Sample distribution is shown in Table 3-5.

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Table 3-5 List for Sampling Proportion (February 2017)

Sampling Sampling No. Sample village Town AHs households proportion 1 Zhangjiagang Chengguan 67 34 50.75% 2 Sanjiaochi Chengguan 102 45 44.12% 3 Qingshan Qingshan 62 28 45.16% 4 Caojian Qingshan 65 30 46.15% 5 Hongyun Xianghe 97 40 41.24% 6 Xianghe Xianghe 71 35 49.30% 7 Longwo Fushui 56 25 44.64% 8 Weijiatai Zhaochuan 227 100 44.05% 9 Yaolinghe Goufenglou 23 13 56.52% 10 Shuigou Goufenglou 136 60 44.12% Total 906 410 45.25%

1Nationality and gender

67. The 410 sample AHs have a total population of 1,545, an average population of 3.77 per household. There are no ethnic minority groups. There are 734 females (47.51%) of the total surveyed population; they are mainly engaged in farming, housework, family caring and other activities. 2Education background

68. Of the surveyed households, 463 people received junior high school education (29.97%); 800 people received senior high school or technical secondary school education (51.78%); 116 people had received junior college or above education (7.51%); 166 people are illiteracy or have never received education, (10.74%); 3Age structure

69. Among the 410 household (1,545 sampled people), 381 are aged under 18 years (24.66%), 1,060 are aged from 18~60 years (68.61%), and 104 people over 60 (6.73%).

4Annual household income

70. The surveyed affected households have an average annual income of CNY 26,030, of which agricultural income forms CNY 4,900 per household, animal husbandry income CNY 2,880 per household, main household income comes from industry and sideline of CNY18,250, such as transportation operation, restaurant, and local small business of buying and selling. Cultivated land rental is about CNY 200~300 per mu where convenient transport and irrigation is available. A more common practice is that where an entire household has migrated out, the land is transferred to relatives to use without charge. In total, per capita annual net income is CNY 6,908. Agriculture is no longer the main income source of the surveyed rural households. This is consistent with the local industry structure where women are engaged in agriculture as well as manual manufacturing and men work in factories or go out for non-farming jobs.

5Annual family expenditure 26

71. The per household total annual expenditure is CNY 22,000 including operating expenditure of CNY 4,000 (17.6%); living expenditure of CNY 12,000 (54.3%); other expenditure of CNY 6,000 (28.1%). Table 3-6 Survey summary sheet for basic information of sampling families (February 2017)

Survey project 410 Ahs Time February 2017 Population (person) 1,545 Labor (person) 1,040 Population engaged in agriculture (person) 320 Per capita cultivated land (mu) 0.98 Annual per capita net income (CNY) 6,908 Per household cultivated land (mu) 3.67 Annual per mu output value of cultivated land (CNY) 1,200 Farming (CNY) 4,900 Annual per household net Cultivation (CNY) 2,880 26,030 income (CNY) industry and sideline (CNY) 18,250 Productive expenditure (CNY) 4,000 Annual per household Living expenditure (CNY) 12,000 22,000 expenditure (CNY) Other expenditure (CNY) 6,000 Per capita housing (m2) 30 Productive mechanical value (CNY’0000) 1.8 Value of major living goods (CNY’0000) 2.5

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4 Land acquisition, house demolition and resettlement 4.1 Impacts and cost of LA & HD

72. Up to February 28, 2017, land acquisition of subproject that has already started to be constructed amounted to 507.98 mu, of which, land acquisition of collective land is 502.03 mu, and state-owned land is 5.95 mu. All land acquisition is for Shangyun Road construction. The subproject plans to demolish buildings of 19,388.13 m2, among which, brick and concrete building is 12,004.7 m2, brick and wood building 2,109.15 m2, and earth wood building 5,274.28 m2. 587 persons in 146 households are involved. At present, land acquisition has been completed totally, compensation for house demolition has started, and demolition agreements with 45 households have been completed. For rest of affected individuals who haven’t signed the agreements, the Project Office is now consulting with them for appropriate resettlement. People affected by the subproject amounts to 1,622 households, 6,547 people. The compensation for land acquisition and house demolition of the subproject is CNY 20,460,800, of which land acquisition compensation is CNY 7,356,600, compensation for groundattachment is CNY 8,235,100, compensation for house demolition is CNY 4,869,100 and compensation for special facilities is negotiated with relevant departments (see Table 4-1). All kinds of compensation, according to principles of RP, are implemented in compliance with agreements among land acquisition and house demolition office, affected villages and affected people. Samples of signed LA&R agreements are shown in Appendix I. At present, compensation for land acquisition and ground attachments in Shangyun Road has been completed basically. Table 4-1 Expense on land acquisition and house demolition (February 2017)

Ground attachment LA (CNY’0000) House demolition (CNY’0000) Total (CNY’0000) (CNY’0000)

735.66 823.51 486.91 2,046.08

4.2 Compensation standard of LA & HD 4.2.1 Compensation Rate for Permanent Land Acquisition

73. According to unified annual production value and compensation multiples set in Unified Annual Production Value of Land Acquisition in Shaanxi Province, unified annual production value and compensation multiples are CNY 1,137 and 21 respectively, and therefore compensation standard is CNY 23,883 per mu. Based on Implementation Scheme for Ensuring the Construction of Land Acquisition Environment of Shaanxi Mountainous Road Safety Demonstration Project Funded by ADB in Shangnan County (Shang Nan Zheng Fa (2015) No.5), compensation standard for irrigable land is CNY 30,000 per mu, that for dry flat land is CNY 25,000 per mu. In order to fully consider the interests of affected persons, compensation policies in Implementation Scheme for Ensuring the Construction of Land Acquisition Environment of Shaanxi Mountainous Road Safety Demonstration Project Funded

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by ADB in Shangnan County (Shang Nan Zheng Fa (2015) No.5) are taken as resettlement policy basis of the subproject, and it can be implemented immediately after approval of local People’s Government.

74. According to land type of the project, the following relevant contents are added in the plan:

75. According to the provision of Measures for Implementation of the Law of Land Administration of the People’s Republic of China in Shaanxi that the compensation for other land is 1-4 times AAOV of middle level cultivated land of local county (city, district), the compensation standard for the housing land and construction land of the subproject shall not exceed the legal limit – six times of the unified AAOV of the subproject area. However, during the field consultation, the APs pointed out that this policy was made a long time ago so the rate cannot reflect the practical market value of the housing site. Based on the provision of Decision on Deepening the Reform and Conducting Strict Land Administration by the State Council (Guo Fa [2004] No.28) that “if the land compensation and resettlement subsidy paid in accordance with the current legal provision cannot help maintain the original living level of the land-requisitioned farmers and the affected farmers cannot pay the social security fees for losing land due to the land acquisition, the people's governments of province, autonomous region or municipality shall approve the increase of resettlement subsidy”, this RP therefore determines that the compensation for housing plot or homestead will be equal to 90% of compensation standard for cultivated land, namely, CNY 22,500 per mu as the subproject standard for rural housing plot. Table 4-2 Compensation Standard for the Project Land Unit

Irrigable Category Dry ground Hilly land Forestland Home stead Barren land land Compensation Standard 30,000 25,000 12,000 5,000 22,500 3,500 (CNY/mu) Note: The above standards are available for land acquisition of collective land. But land acquisition of state-owned land is directly appropriated without compensation.

4.2.2 Compensation Rate for House Demolition

76. Compensation will be given in the principle of compensation for demolished houses and compensation for relocation household with same structure, same area and same location regulated in RP. Per resettlement plan and structure and type of house, the affected persons shall receive full replacement cost without depreciation for the original house. Meanwhile, the affected persons can use the building materials of the original house free of charge/cost. 77. Villagers who lose houses will get homestead from their villages, centralized settlement, requesting for the construction arranged by town/township or village, and scattered settlement or settlement by using compensation and moving cost themselves. Relocated households will

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obtain temporary transitional expense before moving into the new houses. They can also arrange themselves or ask the village or Shangnan PMO to assist in renting houses for them. 78. Before new houses are constructed or transitional houses are provided, original houses cannot be demolished. Transitional period is 10 months tentatively, and once the affected households cannot be relocated in time, the transition subsidy will be provided based on actual time from date of house demolition to moving into new apartment. The affected households will obtain transitional expense before moving into the new houses. If some families have troubles when moving, the village committee and shangnan PMO will offer assistance in transportation. For families who have difficulties in searching transitional houses, the village committee and the shangnan PMO will provide assistance in renting house. 79. On June 7, 2014, the General Office of Shaanxi Province People’s Government issued Notice of Further Strengthening and Standardizing Resettlement and Relocation for Shaanxi (Shaan Zheng Ban Fa [2014] No.47), which standardizes the resettlement and relocation in Southern Shaaxi. On March 27 of 2015, the Shangnan County People’s Government issued Notice of Land Acquisition of Shaanxi Mountainous Road Safety Demonstration Project Funded by ADB in Shangnan County. According to land acquisition and house demolition policy of two documents and requirements of affected people, constitutive structure of compensation cost is adjusted, and resident relocation incentive fee of CNY 1,000 per household in original plan is merged in scope of incentive fee of CNY 10,000~45,000 per relocation household proposed by No.47 document issued by Shaanxi Provincial Development and Reform Commission. According to new policy, actual removal expense of compensation is: brick-concrete CNY 1,274 per m2, brick-timber CNY 806 per m2, and earth-wood CNY 482 per m2. The above standards are averagely higher than compensation standard proposed by first draft of resettlement plan. 80. The compensation standards adopted in this plan is listed in Table 4-1, which have been discussed with the affected people and shangnan PMO, and are complied with the local market price. The housing land compensation will be distributed prior to demolition, and the housing site shall be arranged within the same village group or village as much as possible. The location selection and allocation details will be arranged after a villager representative conference organized by village committee. The “three supplies and one leveling” for the homestead will be carried out by the project construction unit, and the expense is included in construction budget. Table 4-3 Compensation Standard for House Demolition

Compensation Type Structure type Unit Remark standards Including policy incentive CNY compensation fees, the real Brick-concrete 1,000 Compensation /m2 compensation is up to CNY for house 1,247/m2 CNY Including policy incentive Brick-timber 800 /m2 compensation fees, the real 30

Compensation Type Structure type Unit Remark standards compensation is up to.CNY 806. Including policy incentive CNY Earth-wood 400 compensation fees, the real /m2 compensation is up to.CNY 482 The removal reward is merged into Policy this item. The removal reward and CNY / incentive 10,000~45,000 the policy incentive compensation HH compensation are based on distance, location, Other subsidy transitional period and so on. for house The transitional period is from demolition CNY / demolition inspection acceptance to Transition person/ 100 demarcation of homestead Extend subsidy month for another ten months till the date of delivery of resettlement houses.

4.2.3 Resettlement plan and economic recovery measure

81. The subproject will involve demolition of 19,388.13 m2 of housing and will affect 146 households with 587 persons. Field surveys revealed that most of the affected houses have potential safety hazards and are out of repair, and have worse water, electricity supplies and road accessibility, and poor surrounding area sanitation. Guided by the principles of the replacement costs and no depreciation, most APs view that the project provides reasonable compensation standard as set out in Section 4. The subroject also provides several options for APs to choose based on their own conditions, which will positively facilitate to restore or improve their living condition smoothly. The major options include:

(1) Cash Compensation without housing plot allocation a) Cash compensation for new house purchased voluntarily

82. For those households with alternative houses in the city or nearby places or who plan to buy commercial residential house in town and then to give up reconstructing new houses, a written application is required. In addition to cash compensation of housing lot and replacement price of house structure including annex buildings paid in cash to AH directly, an additional resettlement subsidy of CNY 10,000~45,000 per person will be granted once the written application is approved. b) Cash compensation with existing house expanding or rehabilitation

83. Households with an existing house have potential to add more floors, or where the housing plot is big enough to add an annex building, the AP does not need another housing plot. If APs choose this option, a written application is required. In addition to cash compensation of housing lot and house structure including annex buildings, an additional resettlement subsidy of CNY 10,000 ~ 45,000 per person will be granted once the written application is approved.

(2) Centralized relocation in “Village development planning of new village”

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84. For those who are willing to purchase new houses on residence zone based on village development planning of new village, cash compensation for homestead and replacement price will be paid to AH directly. In addition, discount has been negotiated completely and corresponding commitment has been made. On the whole, both location and quality of house are better than that of planned demolition house. House price committed is CNY 1,000-1800/m2, which is only construction cost and meets demolition compensation standard confirmed in the resettlement scheme as well as is far below the price of congeneric commercial housing residential. AF accepted survey believed that such arrangement is quite reasonable and acceptable.

(3) Individual reconstruction on the government allocated housing site

85. If the households have difficulties finding a housing plot, but still want to reconstruct their new houses, the town government has committed to provide the AHs with housing plots acceptable to them. The price will not exceed the compensation standard regardless of actual costs (no matter how much the cost is). There will be no additional cost to the AHs. 86. The provided housing plot can either be in a concentrated area or a single housing plot. In any case, water, electricity supply and road facility will be made available, and the land leveling will be done by the project. The design fee also will be covered by the project. (4) Economic recovery and development plan

87. For households affected by land acquisition house demolition, all affected villages are implementing income restoration measures, which provides effective support for income restoration of people affected by land acquisition house demolition; for example, after implementation of the subproject, small amounts of land are expropriated, economic recovery is intensively carried out in affected villages. Currently, each village has formulated economic recovery plan, striving project implementing agency to provide support for recovery and development of the local economy. Economic recovery and development plan mainly includes: a .Strengthening agricultural science & technology education, and improving labor productivity skill and labor quality. b .Actively organizing surplus labor, and participate in labor service export of project construction to increase income. The subproject started in August 2016. Based on the statistics, there are altogether 739 local labor forces participated in the project construction, including 111 affected persons, 128 poverty-stricken families and 146 women. It is roughly calculated that each person can get CNY 50 to 120 per day as remuneration, thus bringing an extra income for their families, and the income is much higher than that gained from agricultural production. c. Assisting relocation households in engaging in tertiary industry and increase approach of economic sources. d .Restructuring surplus land and increasing output value of unit land.

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e. Promoting the circulation of agricultural and sideline products and increasing the income of agricultural and sideline products.

88. Through the implementation of above measures, the livelihood of residents in the affected villages by the subproject could be improved obviously, such as income increase and production development. 89. In addition, the subproject will arrange skill training for affected households, such as gardening planting nursery garden, fruit tree or other new economic crop planting, arts and crafts products, farm machinery, motorcycles and other vehicles maintenance, stonemason, painter, concreter, waterproof worker, bricklayer, house decoration worker, etc. The skill training shall begin in 2017, the affected households can participate in any of these skill training depending on their needs. (5) Economy recovery plan for vulnerable groups

90. The main affected vulnerable groups all are the poor, totally 462 households, including single parent family and women-headed family, Wubao (five-guarantee households), households affected by disability and illness. A series of additional measures have been put in place to help them in livelihood restoration and relocation restoration. A. Including eligible vulnerable groups in MLSS as a priority 91. According to the Minimum Living Standard Scheme (MLSS) policy of Shangnan County for rural residence, eligible vulnerable groups affected by the Project will be included in the MLSS in time and receive MLSS benefits so as to ensure that the per capita net income of each rural AH is not less than CNY 3,015 a year B. Providing rural medical assistance to eligible vulnerable groups 92. Rural medical assistance will be provided by Shanan County Government to eligible vulnerable groups to solve the problems that they have difficulty in receiving medical treatment. Due to low income or no income, with the addition of suffering from serious illness, children’ educational problems, etc. as well as local backward economy and unfulfillment of medical security, farmers in mountain area go to hospital only until physical problems are very serious, and they have missed the best treatment time of disease at that time. It is a problem that vulnerable groups have difficulty in receiving medical treatment. PMO, town and village committee that affected person is located to research, assess, confirm and reserve CNY 50,000 as reserve fund of medical subsidy for vulnerable groups, which shall be used as medical assistance for vulnerable groups families affected by the project, and the maximum amount for each household is no more than CNY 4,000. C. Giving priority to vulnerable groups in resettlement measures Land acquisition affected households: 93. For vulnerable groups, the following measures are specified to assist them. • Priorities will be given in obtaining replacement land through allocation of reserved land, or

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through land transfer if the vulnerable AH chooses to restore their income through agricultural measures; • The households with a labor force will be given priority in skill training, public welfare positions in government and reserved positions in the project and local government. In case of meeting the condition, small-sum guaranteed loan will be given in priority; • Priorities will be given in LEF endowment insurance and new rural endowment insurance to eligible AH. • If necessary, provide preference loan to the significantly affected households in developing non-farming business, such as purchasing vehicles for transport business, operating repair shops, developing other income generating business, detailed plan will be discussed during implementation. • Apply for special recovery funds established by the project to restore production and living subsidy. PMO, town and village committee where affected person is located research and determine to provide additional CNY 3,000-5,000 for the vulnerable households to assisting in their production restoration and life improvement. House demolition affected households: 94. For vulnerable groups, the following measures are specified to assist them. • Priorities will be given to vulnerable group to choose resettlement locations, floors, size, and etc. • They can apply for special recovery funds established in the project for production recovery and living subsidy. PMO, town and village committee where affected person is located to research and determine that CNY 5,000 will be provided for affected vulnerable groups families, which is used for living allowances and resettlement subsidy in transitional period • Economic housing will be provided for the poor.

(6) Women’s Development Measures

95. During the resettlement process, women’s rights and interests will be fully protected, and women will play an important role in socioeconomic and resettlement activities. To ensure women’s rights and interests, the following relevant measures will be adopted: A.Provide and assist women in applying for job opportunities related to the project: 96. For those who are interested in participating in project job opportunities, Women’s Federation staff at the township and village levels will be responsible for informing them of job opportunities in advance and facilitate women to apply for the employment. Basic skill on landscaping and other relevant skill training will be provided prior to recruitment. 97. After project implementation started, 146 local women have participated in, and all work contents were available to them, including: traffic safety officer, carrying, tidying the engineering objects and chores. They also got the corresponding return, which was far higher than agricultural production revenue calculated with the daily average revenue. The remuneration is 34

helpful for their daily life at home; meanwhile, women will play a more important role in family. B.Enhance the women’s ability to use media: 98. Provide conditions and opportunities for rural women to contact, study and use mass media; support and promote rural women to enhance the ability to use media and communication technology; encourage non-government institutions and enterprises to use various information communication technologies to help women gain information and service. C.Provide preferential training method and contents for women: 99. As women have relatively lower education levels and experience generated in migrant jobs, they have less available employment and income generation choices than men. Training is particularly crucial to them in developing new income sources becoming available through industrialization and urbanization development. They hope to have not only agricultural skill training on horticulture, fruit tree caring, but also non-farming skills with handicraft, urban employment skills such as hotels, restaurants, shopping malls, and garment factories in factories e.g. Women’s training needs has also been covered in RP, and training budget are reserved at the same time. The project will ensure that 40%-60% training opportunities are provided for the affected females. The Women’s Federation representatives together with the employer agencies will further consult with women to develop the training design on methods and contents. 7Recovery Plan of Special Facilities

100. The special facilities affected by the project are mainly power lines, telecommunication lines, etc. To minimize disruption to residents, detailed surveys have been done and the budget has been included in the RP budget. The relevant line agencies will be responsible for detailed relocation planning and rebuilding electric power and communication facilities. (8) Centralized relocation 101. At present, program for site selection of relocation point in Chengguan Town has been approved; the relocation points in Xianghe Town and Qingshan Town have been completed; and main body construction for relocation points in Zhaochuan Town has been completed. 102. Among 45 affected households who signed agreements, only an affected household in Huayuan Village of Qingshan Town is willing to be relocated intensively, and has been settled in resettlement community of Qingshan Town. Other 44 households chose other resettlement ways.

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5 Public Participation

103. During the project preparation, many public consultation and participating activities have been conducted. At the stage of external monitoring, external monitoring of Phase II and public consultation activity are carried out on February 6 to March1, 2017. Details are shown in Table 5-1. Table 5-1 Public consultation and participating activity

Participants Issues, comments and Time Organizer Objective and number suggestions Monitor the measurement of impacting quantity of project, each link of Shaanxi Kexin payment and consulting Baseline compensation for land Company Co., Ltd, Affected towns, investigation, acquisition and house September project office, villages and external monitoring demolition of project, and 1-30, 2016 township, village villagers of Phase I and signing process of cadres of public consultation agreement between Shangnan County parties, socio-economic surveys for affected area, sampling survey for affected households Shaanxi Kexin Consultant Affected towns, External monitoring Track and monitor all February 6, Company, project villages and of Phase II and contents of external -March1, 2017 office, town and villagers public consultation monitoring of Phase I cadres of Shangnan County

104. Per the requirement of the RP and ADB, all the stages of the project implementation should conduct the public participation of the affected persons. So, at the preparation stage of the project, the affected villages set up the project coordinating groups, the 3~5 members of which are the local persons such as village leaders, women representatives and representatives of the vulnerable group. The duty of the group is as follows: a. to select the vulnerable group; b. to organize the villagers to join in the construction of the project; c. to support the monitoring in their own community; d. to put forward suggestion for the compensation and resettlement of the project; e. to call for villagers to support the construction of the project.

105. According to the investigation, project coordination group built by project implementation village runs well, personnel are in place, which promote the successful implementation for land

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acquisition and housing demolition. Besides the land acquisition compensation and other policies are determined by the villager’s representative meeting, most of the questions about the project are determined after the discussion of project coordination group and the masses, which greatly promote the smooth implementation of project.

106. At present, most resettlement will of affected villagers is cash compensation and allocation of homestead, only an affected household in Huayuan Village of Qingshan Town is willing to be relocated in centralized manner. Most villagers think that area of centralized relocation is limited and previous lifestyle and neighborhood relationship will change after settling in centralized resettlement house. Hence, most villagers have consideration about centralized relocation. However, relocation households who have signed agreement are satisfied with compensation expenses. It is understood that actual compensation expenses are slightly higher than compensation standard in resettlement plan. See conditions of relocation site in Figure 5-1.

Figure 5-1 Relocation site of Qingshan Town

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6 Conclusions and Suggestions 6.1 Assessment on project acquisition and resettlement

107. (1) 507.98mu of land in the project is permanently expropriated; there are 1,622 households (6,547 people) affected by land acquisition of the project, of which 1,598 households (6,487 people) are villagers, 24 households (60 people) belong to town government agency staff. 146 households (587 people) are simultaneously affected by house demolition and land acquisition, 1 household (2 people) belonging to town government offices are simultaneously affected by house demolition and land acquisition. For the affected villagers, per cultivated land of the affected people decreases by 0.027mu after land acquisition, the area of per capita cultivated land decreases by 2.65%; for project implementation area, agricultural income is not the main source of livelihood of residents, per capita income of the affected people decreases by about CNY 35 per year, accounts for about 0.44% of annual per capita income, therefore, project land acquisition has little impact on the quality of life for the affected people. Meanwhile, the income of the affected people is expected to reach CNY 2000 per person per year by participating in project services and potential freeway benefit after implementation of the project, which is far more than the losses caused by land decrease. In summary, the masses are very supportive and actively participate in the project construction. 108. For town government agencies, they are state-owned property; land acquisition is directly allotted; house demolition is compensated at market price. After acquisition and relocation for the affected households, through allocated land by the government, they rebuild houses or make use of existing free office location of the government. Therefore, there is little impact on the affected people. 109. (2) Project implementation involves house demolition, and the work is being continuously implemented at present. Demolition for 45 households has been completed, which accounts for 30.82% of all relocation households.

110. (3) Compensation standard for land acquisition and demolition is based on the standard set in resettlement plan; in actual land acquisition and demolition, cost evaluation for land, houses and other ground attachments followed the principle of adopting the higher instead of the lower, and some reasonable requirements proposed by the masses were adopted at the same time, so the actual compensation was slightly higher than the standard in original resettlement plan. At present, the compensation fees of CNY 24,060,800 has been paid, accounting for 62.74% of planned compensation fees.

111. (4) Due to the implementation of the project, the villages affected by the project become the direct beneficiary as well as the participants of the project. After the villagers’ property is acquired, they all get a full amount of compensation. The villages positively assist the affected persons in economic recovery with the compensation fees, take the interest of the project, the

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collective and individual into full consideration, and obtain the full support from various stakeholders to ensure the smooth implementation of the project. In addition, in the implementation of project, the participation of local labor forces and affected persons should be absorbed as far as possible, thus increasing the income of the masses. According to the statistics, since the implementation of project from August 2016, 739 local labor forces have been absorbed, of which there were 111 affected persons of project, 128 poverty-stricken families, and 146 women, which embodied the attention of ADB loan project for women development and poverty alleviation target. Since the implementation of project, land acquisition and demolition are implemented actively and smoothly, without centralized and written complaints from the masses. 6.2 Problems and suggestions

112. Our supervision and consulting work have been supported by Foreign Funds Project Office of Shaanxi Provincial Transport Department (Shaanxi Provincial PMO) , Shangnan County PMO, thus going smoothly. Besides expressing thanks to various relevant organizations, we propose the following suggestions for later land acquisition, house demoltion and relocation:

113. (1) Multiple resettlement modes were proposed for Shangnan Project in RP. Affected persons showed their select intention for different modes in public consultation, and the government and the shangnan PMO preferred to encourage affected persons to choose centralized relocation mode of house demolition. For relocation household choosing centralized relocation, the government provided removal compensation of CNY 10,000~45,000. However, during the external monitoring, monitoring personnel understood that only one relocation household determined the scheme of centralized relocation up to now, and the rest of 145 households involved in are looking on or insist on asking for allocating homestead to build houses in their village. Due to inadequate land resource of each village, basically, there is no land to build houses for relocation household at present. Accordingly, resettlement progress of the project lagged the original plan. Attitude change of affected persons to resettlement scheme is based on the dissatisfaction on the location of centralized relocation, for instance, it is far away from the original place of residence and is uneasy to work in original contracted land after settling in resettlement site. Some people are strange to resident manner, and the other think that auxiliary facilities are lagged. Hence, in order to encourage the masses to actively participate in centralized, improvement of auxiliary facilities in resettlement site, such as water, electricity and natural gas, road, and construction of education, medical treatment, commerce, culture and sports facilities shall be strengthened in addition to policy economic subsidy for centralized relocation household. For conditions that farming area is far away from resettlement site, support in terms of policy or concessional loan can be given after project is completed. Moreover, the government encourages the individual to set up short-distance transportation

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service, increase community culture & sports activities of resettlement site, allay the masses’ concerns for centralized relocation, and accelerate the resettlement process of land acquisition and house demolition of the project.

114. (2) In land acquisition and demolition, Shangnan PMO has undertaken lots of work. At present, the arrangement of staff is relatively stable, and the staff of land acquisition and demolition has certain understanding for project policy and information, thus exerting certain promotion effect for management of land acquisition and demolition of project. Moreover, the staff of land acquisition and demolition should understand policy deeply and master the information of land acquisition and demolition more comprehensively, especially in terms of public consultation and information disclosure, it may easily reduce the confidence and support of masses for the project construction. Therefore, it is suggested that relevant organizations should make land acquisition organization and personnel allocation stable, and strengthen business and policy training for working personnel, thus making twofold results with half the effort can be obtained.

115. 3Besides the land acquisition and demolition organizations of Shangnan PMO, various village groups affected should be familiar with and understand the policies and procedures for land acquisition and demolition, and pay special attention to keeping various records and documents for land acquisition and demolition, including records for villagers’ meetings, consulting activities and information disclosure, thus being convenient for summarizing and querying for land acquisition and demolition. 116. The external monitoring of Phase II of this project started to implement in February 2017, for the incomplete or inaccurate places of information and data collection in the report, these deficiency shall be complemented in the next issue external monitoring report.

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Appendix 1 Compensation Agreement for Land Acquisition and Demolition 1. Compensation Agreement for House demolition

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2. Compensation Agreement for Land Acquisition

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3. Registration Form for Compensation of Ground Attachments

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Appendix 2 Resettlement policies of Southern Shaanxi area About Opinions on Further Strengthening and Standardizing resettlement Work of Southern Shaanxi Area, General Office of People’s Government of Shaanxi Province, Shaan Zheng Ban Fa [2014] No.47

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Appendix 3 Table for project house demolition details of Shangnan County Details for Demolition of Shangnan County project

砖混结构面积 砖木结构面积 土木结构面积 计 序 户名 乡镇 村 备注 m2 m2 m2 m2 1 用福 城 张家岗 264.18 264.18 2 场 城 张家岗 240.72 240.72 3 姜新广 城 张家岗 489.85 65.52 555.37 4 桂国华 城 张家岗 120.97 120.97 5 华 城 张家岗 172.78 172.78 6 何朝旺 城 张家岗 12.5 12.5 7 杨国 城 三角 22.68 22.68 8 村委会 城 三角 33.67 33.67 9 田升 城 三角 24.48 24.48 10 余嗣记 城 三角 42 42 11 黄金均 城 三角 44.45 44.45 12 黄金志 城 三角 44.45 44.45 13 黄玉琪 城 三角 28.7 28.7 14 李清周 城 三角 364.94 364.94 15 李青海 城 三角 151.84 151.84 16 刘振芳 城 三角 328.84 328.84 17 刘振国 城 三角 45.5 13.2 58.7 18 刘振祥 城 三角 47.36 47.36 19 刘明华 城 三角 218.94 218.94

51 砖混结构面积 砖木结构面积 土木结构面积 计 序 户名 乡镇 村 备注 m2 m2 m2 m2 20 刘明德 城 三角 218.94 218.94 21 刘振启 城 三角 238.42 238.42 22 何祥旺 城 三角 94.34 91.56 185.9 23 陈波 城 三角 317.13 317.13 24 守成 城 三角 137.41 137.41 25 守民 城 三角 103.23 103.23 26 用 城 三角 29.04 58.38 87.42 27 守印 城 三角 19.25 74.4 93.65 28 用海 城 三角 301.92 301.92 29 郑基成 青山 花园村 400.02 400.02 30 李金 青山 花园村 123.29 123.29 31 王金贵 青山 花园村 65 65 32 郑中元 青山 花园村 96.02 96.02 33 郑 波 青山 花园村 111.31 111.31 34 查振祥 青山 青山村 19.52 244.44 263.96 35 郑中朝 青山 青山村 114.45 114.45 36 刘小虎 青山 青山村 62.3 62.3 37 周书斌 青山 青山村 142.22 19.32 161.54 38 仁山 青山 青山村 348.6 348.6 39 刘忠 青山 青山村 52.51 52.51 40 余建华 青山 青山村 42.5 42.5

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砖混结构面积 砖木结构面积 土木结构面积 计 序 户名 乡镇 村 备注 m2 m2 m2 m2 41 李荣红 青山 青山村 23.6 55.38 78.98 42 李永胜 青山 青山村 12.65 117.6 130.25 43 姜建国 青山 青山村 45.82 45.82 44 李永平 青山 青山村 48.93 48.93 45 畜牧站 青山 青山村 122 122 244 国有 46 刘小虎 青山 青山村 71.5 71.5 47 喻风兰 青山 青山村 198.54 198.54 48 鲁树林 青山 荐村 24.42 24.42 49 郝德有 青山 荐村 85.32 85.32 50 姚振 青山 荐村 34.98 34.98 51 余锡 青山 荐村 27.6 27.6 52 孙富 青山 马蹄店 44.4 44.4 53 杜 青 青山 马蹄店 40.4 40.4 54 熊华钢 青山 马蹄店 146.63 146.63 55 孙林 青山 马蹄店 40.7 77.52 118.22 56 孙华 青山 马蹄店 50.3 53.96 104.26 57 陈更生 青山 马蹄店 34.75 34.75 58 马根生 湘河镇 三观庙 112.5 18.1 38.3 168.9 59 马根才 湘河镇 三观庙 59.5 59.5 60 张根发 湘河镇 三观庙 272 20.7 292.7 61 姜芳有 湘河镇 三观庙 147 31.3 178.3

53

砖混结构面积 砖木结构面积 土木结构面积 计 序 户名 乡镇 村 备注 m2 m2 m2 m2 62 姜芳成 湘河镇 三观庙 104 20.4 124.4 63 陆建强 湘河镇 三观庙 193.3 17.2 210.5 64 张根山 湘河镇 三观庙 22.1 22.1 65 陆建国 湘河镇 三观庙 250.8 250.8 66 姜芳喜 湘河镇 三观庙 146.76 25.92 172.68 67 陆随 湘河镇 三观庙 154.4 17.72 172.12 68 魏国利 湘河镇 三观庙 152.7 36 153.72 342.42 69 魏国民 湘河镇 三观庙 172.77 172.77 70 曹德林 湘河镇 三观庙 184.5 184.5 71 曹德强 湘河镇 三观庙 165.1 165.1 72 李来 湘河镇 三观庙 110.4 35.1 145.5 73 李金成 湘河镇 三观庙 114.45 114.45 74 王金志 湘河镇 三观庙 156.3 156.3 75 王益 湘河镇 三观庙 100.3 20.8 38.5 159.6 76 曹德新 湘河镇 三观庙 200.7 24.2 224.9 77 汪海洋 湘河镇 三观庙 144.4 27.3 171.7 78 道 班 湘河镇 三观庙 340.6 340.6 79 周 湘河镇 三观庙 40.4 40.4 80 王道祥 湘河镇 三观庙 50 50 81 汪玉芳 湘河镇 小岭观 30.7 30.7 82 吴海朝 湘河镇 小岭观 142.8 19.5 162.3

54

砖混结构面积 砖木结构面积 土木结构面积 计 序 户名 乡镇 村 备注 m2 m2 m2 m2 83 吴海成 湘河镇 小岭观 97.4 17.6 115 84 万相国 湘河镇 小岭观 74.4 74.4 85 田良青 湘河镇 小岭观 4.5 25.2 29.7 86 汪学中 湘河镇 小岭观 151.4 19.7 171.1 87 汪学武 湘河镇 小岭观 147 13.33 160.33 88 汪学雷 湘河镇 小岭观 239.88 239.88 89 杜金有 湘河镇 小岭观 236.64 34.8 271.44 90 汪芳来 湘河镇 小岭观 115.24 115.24 91 齐金生 湘河镇 小岭观 109.1 109.1 92 汪 勇 湘河镇 小岭观 25.2 25.2 93 汪连 湘河镇 小岭观 29.93 36.5 66.43 94 汪学迁 湘河镇 小岭观 100.6 100.6 95 崔子斌 湘河镇 红鱼村 290.4 290.4 96 供社 湘河镇 红鱼村 68.4 68.4 97 粮 站 湘河镇 红鱼村 75 75 98 彭湘 湘河镇 红鱼村 239.9 21.1 261 99 彭少 湘河镇 红鱼村 201.58 201.58

100 彭 湘河镇 红鱼村 11.22 11.22

101 彭程林 湘河镇 红鱼村 21 21 102 彭小宏 1 湘河镇 红鱼村 25.84 25.84

55

砖混结构面积 砖木结构面积 土木结构面积 计 序 户名 乡镇 村 备注 m2 m2 m2 m2 103 彭小宏 2 湘河镇 红鱼村 248.33 248.33 104 水保站 湘河镇 红鱼村 568.57 568.57 105 地税所 湘河镇 红鱼村 89.3 89.3 106 胡海斌 湘河镇 红鱼村 391.35 391.35 107 张理贤 湘河镇 红鱼村 45.8 45.8 108 何双全 湘河镇 红鱼村 38.5 38.5 109 刘民 湘河镇 红鱼村 80 80 110 赵启才 湘河镇 湘河村 104.42 104.42 111 饶 爽 湘河镇 湘河村 23.99 19.8 43.79 112 湘河道班 湘河镇 湘河村 278.4 278.4 113 蔺禄 湘河镇 湘河村 101.26 14.96 116.22 114 震 湘河镇 湘河村 25.2 19.7 44.9 115 刘国成 湘河镇 湘河村 38.9 38.9 116 何桂梅 湘河镇 湘河村 30.9 30.9 117 孔凡才 湘河镇 湘河村 10.7 29.6 40.3 118 郭 湘河镇 两岔河 204.12 204.12 119 魏昌 湘河镇 两岔河 120.03 74.76 194.79 120 魏道栓 湘河镇 两岔河 143.4 29.37 172.77 121 魏昌在 湘河镇 两岔河 234.96 234.96

122 李印水 湘河镇 两岔河 111.47 111.47

56

砖混结构面积 砖木结构面积 土木结构面积 计 序 户名 乡镇 村 备注 m2 m2 m2 m2 123 康银来 湘河镇 两岔河 184.14 184.14 124 康银城 湘河镇 两岔河 106 106 125 李端枝 赵镇 魏家台 216.56 216.56 126 魏国成 赵镇 魏家台 57.16 57.16 127 魏来生 赵镇 魏家台 51.61 51.61 128 魏国清 赵镇 魏家台 56.6 56.6 129 陈 刚 赵镇 魏家台 86.49 86.49 130 郝宗进 赵镇 魏家台 253 253 131 杨宗枝 赵镇 魏家台 21.56 21.56 132 赵恒 赵镇 魏家台 105.84 105.84 133 毛奇东 赵镇 魏家台 41.44 41.44 134 阮林 赵镇 魏家台 153.6 153.6 135 汪春山 赵镇 魏家台 98 98 136 王 锋 赵镇 魏家台 29.28 29.28 137 毛奇忠 赵镇 魏家台 45.88 45.88 138 吴振海 赵镇 魏家台 19.24 19.24 139 吴振东 赵镇 魏家台 183.53 30.38 213.91 140 邱荣双 赵镇 魏家台 30.78 47.52 78.3 141 邱荣耀 赵镇 魏家台 32.56 32.56 142 陈宝成 赵镇 魏家台 42.6 42.6 143 村委会 赵镇 魏家台 17.86 17.86

57

砖混结构面积 砖木结构面积 土木结构面积 计 序 户名 乡镇 村 备注 m2 m2 m2 m2 144 吴长明 赵镇 魏家台 30.38 30.38 145 泊河 赵镇 魏家台 18 18 146 黄英明 赵镇 魏家台 22.14 22.14 总 计 12004.7 2109.15 5274.28 19388.13

58