Social Monitoring Report

Project Number: 35338 April 2008

PRC: Roads Development II Project External Monitoring Report on Land Acquisition and Resettlement (III)

Prepared by: Social Investigation Centre of Politics and Public Administration College in Hunan University, People’s Republic of

For Hunan Changji Expressway Construction and Development Corporation

This report has been submitted to ADB by Hunan Provincial Transportation Department and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

Loan Project of Asian Development Bank

The People's Republic of China

Hunan Roads Development Project (II)

External monitoring report on Resettlement of - Expressway(III)

Social Investigation Centre of Politics and Public Administration College in Hunan University

April, 2008

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TABLE OF CONTENTS

CHAPTER1 PROJECT INTRODUCTION 4

CHAPTER2 PROCESS OF LAND ACQUISITION AND RESETTLEMENT 4

CHAPTER 3 METHOD OF EXTERNAL MONITORING 5

CHAPTER4 POPULATION 5

CHAPTER5 RESIDENTIAL HOUSING 7

CHAPTER 6 LAND 9

CHAPTER 7 INCOME 10

CHAPTER 8 CONSUMPTION EXPENDITURE 12

CHAPTER 9 PROPERTY 14

CHAPTER 10 PRODUCT ACTIVITY 16

CHAPTER11 GRIEVANCES AND APPEAL 18

CHAPTER12 CONCLUSIONS 18

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External monitoring report on Resettlement of Changde-Jishou Expressway

I. CHAPTER1 PROJECT INTRODUCTION

The ChangDe-JiShou Expressway is located in the cities of Changde and , west part of Hunan Province. The section as a vital part of -Chongqing corridor, which is also one of eight high- priority western corridors in Western Development Strategy launched by Ministry of Communications. The Expressway is also a part of National Key Expressway System (NKHS) defined by MOC in December 2001 and key Expressway network of Hunan Province. As an arterial corridor, it links the provincial capital Changsha to other four western cities i.e, Changde, Huaihua, Xiangxi and . Among them, Xiangxi has been included in the “State Western Development Strategy”.

II. CHAPTER2 PROCESS OF LAND ACQUISITION AND RESETTLEMENT

The project covers , in Changde City and Yuanling County in Huaihua. The total length of the alignment is 173km, 71,284 km of which located in ChangDe city, 102.5 km of which located in YuanLing county. The project will be widely spread over 22 townships and 97 villages, about 1414 private households and 79 villages require resettlement of people. The relocation area is 225,139 square meter (16553 square meter in DingCheng district, 50167 square meter in TaoYuan county, 158419 square meter in YuanLing county), The total land acquisition area is 15754 mu (1060 ha), 7699mu( 918mu in DingCheng district , 2328.6mu in TaoYuan county,4452.6mu in YuanLing county), 7699mu of which is farmland, accounts for 48.5 per cent of total land acquisition area.

By the end of 2003, preparations for the land acquisition project have been operated, such as signed compensation contracts with village and farmer, the acquired land have been transferred completely by the end of 2005. The land acquisition project ended at the end of 2006.Land compensation and resettlement subsidies have already been allocated. As for the increased compensation later, the added parts have been distributed to affect families.

The project of relocation has been working at the end of 2003, a number of houses have been demolished in beginning of 2004.we had an investigation in 2006,it represented that land compensation and resettlement subsidies have already been allocated to all affected families.

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III. CHAPTER 3 METHOD OF EXTERNAL MONITORING

On the ground of projects about land acquisition and relocation have been finished largely, the present monitor activities include two points mainly: （1）livelihood changes on land acquisition and pre-project, particularly for income recovery.（2）Appeal of affected households and Resettlement agency’s resolution.

In March, 2008, researchers from Politics and Public Administration College of Hunan University conducted a questionnaires survey in the affected area. They interviewed 480 affected households, the major information include: family background, family property, business operating status, income and outcome and so on.

The present report is based on the survey above.

IV. CHAPTER4 POPULATION

There were 480 households (1998 residents) in this survey. The population of per household was 4.16.An increase of lot than that of 2004.

Table 1 Population of surveyed households

2004﹡ 2008 Number of sample county households Population per Population per population population household household

DingCheng 65 224 3.43 228 3.51

TaoYuan 172 659 3.83 652 3.79

YuanLing 243 1062 4.37 1118 4.60

Total 480 1945 4.05 1998 4.16

﹡Data of 2004 come from baseline survey in 2004

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The survey revealed approximately 73.5 percent of families have about 3-5 residents per household, others have about 6-7 residents per household, accounts for12.9 per cent of the total population. The distribution was nearly the same as the baseline survey. (As shown in Table 2)

Table2 Distributions of households’ population

2004 2008 Household population household percentage household percentage

1-2 51 10.6% 53 11.0%

3-5 366 76.3% 353 73.5%

6-7 60 12.5% 62 12.9%

8-10 3 0.6% 12 2.5%

Total 480 100% 480 100%

﹡Data of 2004 come from baseline survey in 2004

The survey presented that approximately 1018 residents were male, occupied 51 per cent, 980 were female, occupied 49 percent .The structure of gender failed to have change compared with the baseline survey in 2004 (male:993, counted 51.1 per cent; female：949, counted 48.9 percent).

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V. CHAPTER5 RESIDENTIAL HOUSING

As is shown in table 3, the per household housing space in surveyed households was 157 square meters，the per capita housing space was 41 square meters. Compared with that of 2004，the per capita housing space increased by 3 square meters. We come to know that floor space of residential house were spacious in affected households in three counties.

Table3 Dwellings of Sample Households 2004 2008 county per household Per capita per household per capita housing housing space housing space housing space space（m2） （m2） （m2） （m2）

Taoyuan 180 47 174 49

Dingcheng 138 40 149 46

Yuanling 140 32 148 34 total 154 38 157 41

﹡Data of 2004 come from baseline survey in 2004

The survey indicated that the ratio of brick-wood structure houses was the highest, accounted for 43 per cent. Compared with that of 2004, the proportion of houses with brick-cement structure had an increase. While houses with Wood and tile structure had considerably drops, it was the result of households with Wood and tile structure had built new brick-wood or brick-cement Structure houses.

YuanLing County, located in mountainous areas, the proportion of houses with brick-tile structure was higher than other counties.

Table4 Constitution of House Structures of Sample Households

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2004 年

Taoyuan Dingcheng Yuanling total Taoyuan

House Structures household percentage household percentage household percentage household percentagehousehold

48 27.9 11 16.9 21 8.6 80 16.7 54

Brick and cement structure

Brick and Wood Structure 77 44.8 44 67.7 96 39.5 217 45.2 83

45 26.2 8 12.3 126 51.9 179 37.3 34

Wood and tile structure

2 1.2 2 3.1 0 0.0 4 0.8 1 Simple structure

172 100 65 100 243 100.0 480 100 172 total

﹡Data of 2004 come from baseline survey in 2004

50% 43.3% 45% 45.2% 40% 37.3% 35% 29.8% 30% 26.3% 2004 25% 20% 16.7% 2008 15% 10% 5% 0.8% 0.6% 0% Brick- Brick-Wood Wood-tile Simple cement Structure structure structure structure

Figure 1 Constitution of House Structures of Surveyed Households

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From data above and present observation, we revealed that the dwelling conditions in affected families have substantially improvement. A wide range of households enjoyed better dwelling conditions than the pre-project. The structure of most new houses has changed from the original wood-tile to new brick-wood now.

VI. CHAPTER 6 LAND

The survey revealed that the per capita farmland in surveyed households was little more than 0.97mu, a decline of 0.67mu than without land acquisition. It was the result of land acquisition of ChangJi Expressway.

It presented that the surveyed household owned few farmland, the per capita farmland of surveyed household in TaoYuan county and DingCheng district was above 1mu.Wherea the per capita farmland of surveyed household in YuanLing county was nothing but 0.68mu.Owned to YuanLing county located in mountainous areas where have few farmland originally. Furthermore, land acquisition of Expressway construction leaded to diminish of farmland.

Table5 Per Capita Farmland Of Sample Households unit：mu DingCheng TaoYuan YuanLing total sample households

2003 2008 2003 2008 2003 2008 2003 2008

Total farmland1.92 1.59 2.05 1.24 1.48 0.68 1.64 0.97

paddy 1.72 1.47 1.44 1.02 0.96 0.53 1.12 0.80

Dry land 0.18 0.12 0.62 0.22 0.48 0.15 0.50 0.17

﹡Data of 2003 come from social-economic survey in 2003.Sample: 637 households

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VII. CHAPTER 7 INCOME

The survey indicated that the per capita annual net income of 480 surveyed households was CNY4,998 (excluding relocation subsistence allowance , if including, the per capita income will be CNY5,291),CNY1,934 more than that of 2003,CNY1450 more than that of 2005 (excluding relocation subsistence allowance).In addition to inflation, there was still considerably high growth.

With the resources of income, we witness that the percentage of wage income counted from 49.9 percent of household net income in 2003 to 68.4 percent in 2007, of which the migrant labor income counted from 38.5 percent of household net income in 2003 to 52.2 percent in 2007.Therefor,the proportion of operating business income occupied from 43.4 percent of per capita net income in 2003 to 31 percent in 2007，of which the ratio of agricultural activities incomes (including agriculture, forestry、husbandry and fishery) occupied from 26.7 per cent of per capita net income in 2003 to 23.2 percent in 2007（As shown in Table 6）.

In the 480 surveyed households, 283 families owned migrant labor income .The average of migrant labor income in each household was CNY19,060 in 2007. However, in the baseline survey of 480 households, 227 families owned migrant labor incomes in 2003. The average of migrant labor income in each household was CNY10,115 in 2003. An increase number of households have migrant laborer, hence the migrant labor income is on the rise simultaneously.

As presented, compared with the baseline survey, the affected households extremely depended on wage income especially migrant labor income, while the proportion of operating business income has declined. In light of less farmland and poor farming comparative efficiency and so on, affected households adept to work away from home for income restoration. What we have to mention is that a number of farmers were working away from home when we visited. As a result, the income was estimated by their relatives and may be higher than their actual income.

Table 6 Constitution of Net Income per Capita of the Investigated Families in 2003 and 2007 Unit：Yuan 2003 2007

Dingch Yuanlin Taoy Dingc Yuanlin Taoyuan total total eng g uan heng g

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amounamounamo percenamouamouamounamoupercen amount t t unt t nt nt t nt t

3,06 3,447 3,305 2,775 100% 4,0886,2975,295 4,998100% Total 4

1,52 1,682 1,488 1,440 49.9% 2,4504,0843,928 3,41968.4% I、Wage income（Yuan） 8

1,18 1,297 1,099 1,125 38.5% 1,6913,2863,081 2,61152.2% including：migrant labor income 1

1,33 1,689 1,591 1,054 43.4% 1,7742,0571,250 1,54831.0% II、 net income of operating business 0 including ： agriculture(farm 、 forestry 、 1,169 1,028 554 817 26.7%1,4301,758823 1162 23.2% husbandry、fishery)

III、Property net income 65 47230 153 5.0% 10 54 35 29 0.6%

IV 、 Transferred income （ excluding 12 179 51 52 1.7% -146 101 82 2 0.0% compensation for land acquisition

﹡Data of 2003 come from baseline survey in 2004.Sample households: 480

Compared with the baseline survey in 2004, we concluded that in present survey, the per capita annual net income of 455 surveyed households in 2007 and 2003 have differences (as for relocation and so on, 25 households among 480 households in the baseline survey of 2004 were absent in present survey), excluded the compensation for land acquisition, about 26% households of per capita annual net income has dropped, and about 74% households have increased (specific data is show in table 7). The further analysis of income resources showed that the migrant labor income in families whose per capita annual net income declined much lower than those families increased. Hence, migrant labor income was the main income resource in affected families, some families failed to obtain enough migrant labor income for lack of labor force. Meanwhile, due to reduction of farmland and relative agricultural cost, those families had a low per capita annual net income (Naturally, the decline of per capita annual net income in some households related to population variety.)

Table 7 per capita annual net income changes of surveyed households in 2003 and 2007

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accumulated Changing amounts household percentage（%） percentage（%）

<-3000 18 4.0 4.0

-3000--2000 21 4.7 8.8

-2000--1000 27 6.1 14.8

-1000-0 50 11.2 26.1

0-1000 65 14.6 40.7

1000-2000 86 19.3 60.0

2000-3000 57 12.8 72.8

>3000 121 27.2 100.0

total 445 100.0

VIII. CHAPTER 8 CONSUMPTION EXPENDITURE

The survey revealed that the average of household consumption expenditure in 2007 was CNY13,349, and the per capita consumption expenditure was CNY3,286. While the baseline survey indicated that the average of household consumption expenditure was CNY8,433 in 2003, and the per capita consumption expenditure was CNY2,099.Absolutely,there were substantially rise in affected households.

Table8 Consumption Expenditure of Sample Households in 2003 and 2007

2003 2007

expenditures mean percent mean percent

1、food 3,536 41.9% 5325 39.9%

2、dressing 601 7.1% 926 6.9%

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3、dwelling 516 6.1% 153711.5%

4、equipments and goods 480 5.7% 529 4.0%

5 transportation and communication 1,018 12.1% 1893 14.2%

6 education and recreation 1,088 12.9% 1638 12.3%

7、Medical treatment 963 11.4% 1045 7.8%

8、others 231 2.7% 456 3.4% total expenditure 8,433 100.0% 13,349 100.0% per capita expenditure 2,099 3,286

﹡Data of 2003 come from baseline survey in 2004.Sample households: 480

The statistical analysis of surveyed households revealed that in addition to the rise of the proportion of dwelling expenditure, other items of consumption expenditures free from absolutely changes. (As shown in Table8 and Figure2) The rise of the proportion of dwelling expenditure was aroused by affected household’s reconstruction and decroation.

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Food 2007 Dressing

7.8% 3.4% Dwelling

12.3% Equipment, goods 39.9% Transportation, communication Education, 14.2% Recreation Medical Treatment 4.0% 11.5% 6.9% Other expenditure

Food 2003 Dressing 2.7% 11.4% Dwelling 41.9% Equipment, goods 12.9% Transportation, communication Education, Recreation 12.1% Medical Treatment

5.7%6.1% 7.1% Other expenditure

Figure2 Constitution of consumption expenditure of surveyed households in 2003 and 2007

IX. CHAPTER 9 PROPERTY

In terms of production, according the survey in 2008, we witness that there was a high proportion of families owning thresher, 10 percent less than that of 2003. The proportions of owning pumps and motor had decreased.

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Tractors and agricultural vehicles failed to have changes in these families. Corresponding data in different counties (district) are shown in Figure3.

80% 70% 68.1% 60% 54.4% 50% 2003年 40% 2008年 30% 23.5% 18.3% 20% 13.5% 20.6% 1.9% 2.1% 10% 2.7% 2.7% 0.8% 0.8% 0% thresher pump motor Tractor agricultural Harvester vehicle

Figure3 Ratios of households Possessing Different Production Tool

In certain extents, durable consumption goods may imply family economic status, material life. The main durable goods were chosen in the survey to measure possessions of durable goods among affected households. From figure4, we acquired that the rates of possession of color TV set and mobile phone soared considerably than the baseline survey. The proportions of owning telephone, motorbike, washing machine and refrigerator also had improvement. While the ownerships of automobile, computer and air conditioning rates were extremely low. The ownerships of black-white TV sets, bicycle had significantly dropped. The phenomenon presented that a series of consumption goods (such as mobile phone) have been owned in rural area widely with rapid development of communication industry in recent years. However, compared with urban areas, affected households who owned expensive consumption goods (such as computer, automobile) in rural areas were still low.

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100% 90.0% 90%

80% 73.5% 70% 64.4% 60% 57.7% 49.4% 51.7% 50% 44.4% 40.8% 40% 35.0% 42.9% 36.2% 31.0% 33.7% 27.7% 30% 24.0% 22.5% 20% 15.8% 10.0% 8.3% 7.3% 4.0% 3.7% 10% 4.4% 1.5% 0.8% 0.6% 0% t e g e e n or er n hi at era cycl V se cycl oni T VCD r ger am bi e ephone le phone o mac c omobile t tel i ot g fri comput nditi M re aut o color TV set r c Mob ashin ai w black-whi 2003 2008

Figure4 Family Possession Ratios of Different Durable Goods in 2003 and 2007

X. CHAPTER 10 PRODUCT ACTIVITY

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Counties and towns along Changde-Jishou Expressway line belong to typical agricultural society with single-product economic structure made up mainly of agriculture. Important agricultural products along the line include grain crops (such as rice, corn and sweet potato), industrial crops (such as vegetables, rape, watermelon, peanut, soybean and ginger), fruits (such as orange, Chinese chestnut, peach and plum) and other products (such as oil-tea camellia, tea and phoebe).

The agriculture activities were primarily dominated by traditional farming methods, with dispersed farming operations. At present, large scale production and industrialization has begun in some agricultural products and achieved obvious economic benefit, such as tea production of Guanzhuang town in Yuanling and western Taoyuan and ginger production in Yuanling County.

From Table 9, we witness that grain production of per household declined from 1946kg in 2003 to 1,528kg in 2007, a decrease of 418kg. It was the result of fewer farmlands. The grain production of per household in Yuanling County Household was intensely lower than that of DingCheng district and Taoyuan County. From statistical data, we concluded that the rapeseed, watermelon and tea outputs of per household have been reduced. In addition, mass households planted tea in Taoyuan County. Generally, scale of breeding poultry and livestock was small. For example, about one pig was bred per household every year.

Table9 Output of Agricultural Products per Household of Investigated Family TaoYuan DingCheng YuanLing total Per household output 2003 2007 2003 2007 2003 2007 2003 2007

Grain (kg) 2144 1782 2762 3182 1587 906 1946 1528

Rapeseed(kg) 41 51 49 62 71 44 57 49

Watermelon(kg) 1 0 0 0 58 2 30 1

Tea(kg) 74 52 0 0 2 1 28 19

Pig 2 1.3 2 0.7 2 1 2 1

Sheep for food 0 0.1 0 0 1 0.1 1 0.1

* Referring to average output of all the investigated families no matter goods were produced in one’s family.

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XI. CHAPTER11 GRIEVANCES AND APPEAL

The survey witness that grievances on resettlement in affected households largely included following aspects:

1. Compensation. A series of affected households reckoned that land compensation standard was low, and they owned few farmlands which would affect life in the long term. A few families indicated that some land out of red line was occupied, yet free from land compensation

2. Impacts on houses and buildings. A range of affected households believed that the bomb of expressway construction caused houses (most of them were new housings) cracked, while they failed to obtain compensation.

3. Impact on water system. In some villages, water systems were destroyed by Expressway construction, irrigation and drinking problems could not be addressed promptly.

4. Impact on local access roads and paths. Construction of Expressway caused a certain negative impact on access to local roads and paths. Some families reflected that gullies which Expressway access to their house lacked decking. Safety would be influenced.

From the information we surveyed, some issues what they reflected have got highly focuses, and would be defeated timely, headaches which free from addressed also should be set store by resettlement agency in the future project.

XII. CHAPTER12 CONCLUSIONS

z Population in affected households failed to have changes.

z As shown in the survey, the per capita housing space was 41 square meters, a wide range

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of households enjoyed better dwelling conditions than without project. The structures of most new houses changed from original wood-tile to new brick-wood. z The survey revealed that the per capita farmland in surveyed households was little more than 0.97mu, a decrease of 0.67mu than without land acquisition. The per capita farmland of surveyed household in YuanLing county was nothing but 0.68mu. z The survey indicated that the per capita annual net income in investigated households was CNY4,998 in 2007, an increase than that of 2003 and 2005.In addition to inflation, there was still considerably high growth. z As presented, compared with the baseline survey, the affected households extremely depended on wage income, especially for migrant labor income, while the proportion of operating business income was declined. z An increase number of households have migrant laborer, hence the migrant labor income is on the rise simultaneously. z Compared with 2003, excluded the compensation for land acquisition, about 26% households of per capita annual net income dropped, and about 74% households increased. Some families failed to obtain enough migrant labor income. Meanwhile, due to reduction of farmland and relative agricultural cost, those families had a low per capita annual net income. z The survey revealed that in 2007 the per capita consumption expenditure was CNY3,286, lots more than that of 2003. z From the statistical analysis of surveyed households, we concluded that except for dwelling expenditure, the proportion of other consumption expenditure hadn’t intensely changes. z The rate of possession of color TV set and mobile Phone soared considerably than the baseline survey. The proportion of owning telephone, motorbike, washing machine and refrigerator also had improvement. z Counties and towns along the Changde-Jishou Expressway belong to typical agricultural society. The grain production of per household declined from 1946 kg in 2003 to 1,528kg in 2007.

19 z Compensation. A number of affected persons believed that standard of land compensation was low, and they owned few farmlands which would affect their life in the long term. A few affected households indicated that some land out of red line was occupied, yet free from land compensation. z Impacts on houses and buildings. A range of affected households believed that bomb in expressway construction caused houses (most of them were new housings) cracked, while they failed to obtain compensations. z Impact on water system. In some villages, water systems were destroyed in construction, irrigation and drinking problems could not be addressed promptly. z Impact on local access roads and paths. Construction of Expressway caused a certain negative impact on access of local roads and paths. Some affected families reflected that gullies which Expressway line access to the front of house lacked decking, Safety would be influenced. z Some issues which they reflected have got highly focus, and would be defeated timely, headaches which free from addressed also should be set store by resettlement agency in the future. z In the case of income recovery, besides effort of affected households, more needs to be done for related agencies. Such as technical training, employment and other key information. Resettlement agency should support vulnerable families properly. z After the projects of land acquisition and relocation, resettlement agency should devote more manpower and resources to guide the affected household's economic recovery and deal with grievances and appeals of affected households. If possible, special assistance should be provided.

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