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

(Hanbin District)

(Report No. 1)

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

March 10, 2017

Contents 1 PROJECT INTRODUCTION ...... 1

1.1 PROJECT OVERVIEW ...... 1 1.1.1 Hanbin District Subproject ...... 1 1.1.2 Project investment and implementation process ...... 4 1.1.3 Executing and implementing agencies ...... 4

1.2 AFFECTED AREA OF PROJECT ...... 7

2 LA & HD IMPACTS...... 0

2.1 AFFECTED TYPE ...... 0

2.2 RESETTLEMENT IMPACTS OF THE SUBPROJECT ...... 0

2.3 AFFECTED VULNERABLE GROUPS ...... 3

3 MONITORING ON PROJECT LA & HD ...... 4

3.1 SCOPE OF MONITORING ...... 4

3.2 INTRODUCTION OF INVESTIGATION AGENCY ...... 5

3.3 INVESTIGATION METHODS ...... 6

3.4 MONITORING PROCEDURES ...... 6

3.5 MONITORING INFORMATION AND DATA ANALYSIS ...... 7 3.5.1 Introduction of socioeconomic situation of the project affected area ...... 7 3.5.2 Survey of rural women in project areas ...... 8 3.5.3 Survey of poverty in project areas ...... 9 3.5.4 Survey data of project affected villages ...... 10

4 LAND ACQUISITION, HOUSING DEMOLITION AND RESETTLEMENT ...... 13

4.1 AFFECT AND COST OF LA & HD ...... 13

4.2 COMPENSATION STANDARD OF LA & HD ...... 13 4.2.1 Compensation Rate for Permanent Land Acquisition ...... 13 4.2.2 Compensation Rate for House Demolition ...... 14 4.2.3 Resettlement plan and economic recovery measure ...... 16

5 PUBLIC PARTICIPATION ...... 21

6 CONCLUSIONS AND SUGGESTIONS ...... 23

6.1 ASSESSMENT ON PROJECT ACQUISITION AND RESETTLEMENT ...... 23

6.2 PROBLEMS AND SUGGESTIONS ...... 24

APPENDIX 1 SCENE PHOTOS OF SECOND EXTERNAL MONITORING ...... 25

APPENDIX 2 RESETTLEMENT POLICIES OF SOUTHERN SHAANXI AREA ...... 27

APPENDIX 3 STATEMENT FOR DETAILS OF HOUSE DEMOLITION (FEBRUARY 2017) ...... 30

List of tables

Table 1-1 Basic Information of Hanbin District Subproject ...... 2 Table 1-2 List of Towns and Administrative Villages affected by LA&R ...... 8 Table 2-1 Data of acquired land (February 2017) ...... 1 Table 2-2 House Demolition ...... 2 Table 2-3 Data of Ground Attachments (February 2017) ...... 2 Table 3-1 Social and Economic Status of Ankang City in 2016 ...... 7 Table 3-2 Social and Economic Status of Hanbin District in 2016 ...... 8 Table 3-3 Selected Indicators of the Affected Towns in 2016 ...... 8 Table 3-4 Sample Household Distribution by Road and Town ...... 10 Table 3-5 List for Sampling Proportion (February 2017) ...... 11 Table 3-6 Survey summary sheet for basic information of sampling families ...... 12 Table 4-1 Statistical table for expense on land acquisition and house demolition of Hanbin Project (February 2017) ...... 13 Table 4-2 Compensation Standard for the Project Land Unit (CNY/mu) ...... 14 Table 4-3 Compensation Standard for House Demolition ...... 16 Table 5-1 Public consultation and participating activity ...... 21

List of figures

Figure 1-1 Project distribution ...... 4 Figure 1-2 Project Relocation Organizations ...... 7

1 Project introduction 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, a city 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：Component 1: Rehabilitation of 193 km 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; 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; Component 3: Improvement of the road safety of Component 1 and 2 and other road sections of about 660 km; Component 4: Capability building and agency development, with the focus on the systematic capability of Shaanxi Provincial Transport Department related to road safety. 5. 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 Hanbin District Subproject

6. Hanbin District Highway Road Subproject includes four highways – (1) reconstruction of G316 between the Xunyang County border to Hanbin District in Ankang City (hereinafter called Hanbin Section of Ankang-Xunyang Highway, Ankang-Xunyang Highway for short); (2) rehabilitation of Yanba Town to Dongqiao Village highway (hereinafter referred to as Yanba-Dongqiao Highway); (3) rehabilitation of two village roads such as Zaobao to Yousheng highway (hereinafter called Zaobao- Yousheng Highway) and Zaobao to Wujiashan highway (Zaobao-Wujiashan Highway), with total

1 construction length of 34.886km. 7. Ankang-Xunyang Highway is a reconstruction project for secondary road G316. It starts from Lvhe Town in Xunyang County, enters Hanbin District via Lijiazhuang Village, Xuejiawan Village, Duanjiahe Village, Gaobiliang Village, and Bei’an Village in Xunyang County, and leads to the end of Hanjiang River Bridge in Jinxing Village via Longquan Village, Zaoyang Village and Dongwan Village in the west. 8. Yanba-Dongqiao Highway is a reconstruction project for a grade-4 highway from the central community of Yanba Town in Hanbin District to Dongqiao Village. It starts from Yanba Town, is connected to Jihe-Yanba Highway, and ends at Dongqiao Village of Yinghu Town via Heihu Village, Tangtai Village and Guiping Village, forming a T-shaped intersection with S207. Its total length is 10.699km. 9. Zaobao-Yousheng Highway is a reconstruction project for the highway from Zaobao in Hanbin District to Yousheng Village. With the starting point of K0+000 (K13+020 of Gaoju-Zaobao Highway), it goes around the mountain and ends at K4+156.675 in Yousheng Village. The total length is 4.157km. This project is an extension highway, with designed speed of 15km/h and 10km/h for special section. 10. Zaobao-Wujiashan Highway is a reconstruction project. With the starting point of K0+000 (K12+360 of Gaoju-Zaobao Highway), it goes around the mountain and ends at K4+318.737 in Wujiashan, with the length of 4.319km; the branch starts from K1+525 of main line, goes around the existing village road, and ends at K5+016.138 across the bealock at K3+700, with the length of 5.016km; the whole length is 9.335km. The project is an extension highway, with design speed of 15km/h and 10km/h for special section. Table 1-1 Basic Information of Hanbin District Subproject Construction Scope of project’s Project Category Project construction content grade impact Affect one town It starts from Lvhe Town in Xunyang Construction (Zaoyang Town), County and stops at the end of standard for three villages Ankang-Xunyang Road Hanjiang River Bridge via Duanjiahe secondary (Zaoyang, Highway (G316) reconstruction Town, Zaoyang Town, and Guanmiao national Dongwan, Town, with the total length of 34.386km. road Longquan), with 885 people It starts from Yanba Town, is connected Affect two towns to Jihe-Yanba Highway, and ends at Technical (Yinghu, Yanba), Yanba-Dongqiao Dongqiao Village of Yinghu Town via Road standard for four villages Highway (township Heihu Village, Tangtai Village and reconstruction grade-4 (Dongqiao, Heihu, road) Guiping Village, forming a T-shaped highway Tangtai, Guiping), intersection with S207. Its total length is with 355 people 10.699km.

2 Zaobao-Yousheng Highway is a reconstruction project for the highway from Zaobao in Hanbin District to Affect one town Technical Zaobao-Yousheng Yousheng Village. With the starting (Zaoyang), two Road standard for Highway (village point of K0+000 (K13+020 of Gaoju- villages (Gaoju, reconstruction extension road) Zaobao Highway), it goes around the Yousheng), with highway mountain and ends at K4+156.675 in 74 people Yousheng Village. The total length is 4.157km. Zaobao-Wujiashan Highway is a reconstruction project. With the starting Affect one town Technical point of K0+000 (K12+360 of Gaoju- (Zaoyang), two Zaobao-Wujiashan Road standard for Zaobao Highway), it goes around the villages (Gaoju, (village road) reconstruction extension mountain and ends at K4+318.737 in Maliu), with 128 highway Wujiashan, with the total length of people 9.335km.

3 Figure 1-1 Project distribution

1.1.2 Project investment and implementation process

11. By February 2017, acquisition and relocation work in Hanbin Section of Ankang - Xunyang Highway has achieved new progress. 9 households affected by the housing demolition have signed demolition and resettlement agreement and got all compensation expense and temporary settlement expenses. At present, all of them have moved into temporary shelters; land acquisition agreement for a total of 47.495mu has been signed, including paddy field (irrigable land) of 1.726mu, dry land of 23.001mu, dry sloping land of 35.457mu, homestead of 1.726mu, forest land (including the new afforestation land) of 18.365mu, accounting for 48.5% of total land acquisition area (97.788mu). However, land acquisition compensation expense has not been paid by now. 12. Because Shaanxi Highway Management Department has not made any reply for the bid and bidding procedure of the project, therefore, there is no land acquisition and house demolition in other sections beside the actual land acquisition work in Hanbin Section of Anxun Road. The monitoring report will mainly describe and monitor the social economic development index of implementation area and affected persons. 1.1.3 Executing and implementing agencies

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

13. SPPLG is the leading agency responsible comprehensively for the overall deployment of the Project and solving major issues. The group will include Comprehensive Planning Division and Road Management Division lead by a deputy director of Shaanxi Provincial Transport Department. 14. SPPMO in Foreign Funds Financed Project Office (FFPO) is the working body of SPPLG as

4 coordinating agency in charge of applying for ADB loan, coordinating the formulation and implementation of RP, monitoring and evaluation of the RP implementation, including funds flow of compensation of LA and HD.

(ii) Hanbin District Project Management Office (SCPMO)

15. Hanbin District People’s Government is the implementing agency of this Project, and the project leading group consists of heads from relevant bureaus, including transport bureau, land and resources bureau, resettlement bureau, development and reform bureau, etc. Hanbin District Project management Office (SCPMO) is the project implementation agency, and the office is located at Hanbin District Traffic Transport Bureau, and is responsible for the project management, coordination, supervision, direction, quality assurance and annual planning, and the follow-up monitoring of the implementation, reporting to Shaanxi Provincial Project Leading Group regularly. 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) Hanbin District Project Resettlement Office (SCPRO)

16. The SCPMO, consisting of 4 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 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 Hanbin PMO.

(iv) Town/township Government

17. The town/township resettlement offices, headed by each Town/township leader are comprised of key officials of the land and resources office, police office, civil affairs office and village committees. The main responsibilities are: ‹ Participating in the survey of the Project, 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.

5 (v) Village committees and village groups

18. 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 any, ‹ To choose resettlement sites and distribute 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, housing and ancillary facilities demolition and reconstruction; ‹ Reporting the progress in land acquisition and resettlement; ‹ Preparing clearance letter to confirm the facility and infrastructure restored and meet their requirement.

(vi) Agency of preparing RP

19. SPPMO entrusted Shaanxi Academy of Social Science to prepare “RP”, and its main responsibility covers preparing RP and providing corresponding training for implementation personnel of resettlement in provincial, municipal and township project offices.

(Vii) Internal supervision agency

20. Hanbin District 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 the requirements of the RP, and guarantee all the affected people can get their rights and interests.

(viii) Designing Institute

21. During project planning and design period, designing institute shall accurately investigate land acquisition, house demolition, environment carrying capacity, available resources and other physical index, assist the government where the project locates in preparing RP, preparing budget investment estimation scheme for compensation of land acquisition and house demolition, and preparing relevant drawings. 22. During project implementation period, designing institute shall provide designing document, technical

6 specification and drawings and notifications to owners and disclose designing situation to project offices at all levels.

(IX) External independent monitoring and evaluation agency

23. 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.

Leading Group of Shaanxi ADB Loan Mountainous Road Safety Demonstration Project and Its Office

Hanbin District Project Management office with ADB Loan

Project design institute Hanbin District Project Resettlement Office Internal monitoring

Project Town resettlement office

External monitoring Village/ Community committees

Affected people

AH by HD AH by LA Infrastructure

Figure 1-2 Project Relocation Organizations 1.2 Affected area of project

24. The impact of land acquisition and demolition of the project involves three towns and ten administrative villages. See Table 1-2 for reference.

7 Table 1-2 List of Towns and Administrative Villages affected by LA&R

Name of town Name of village/ neighborhood committee Road Components affected affected Ankang-Xunyang Zaoyang Zaoyang, Dongwan, Longquan Highway (national road) Yanba-Dongqiao Highway (township Yanba, Yinghu Dongqiao, Heihu, Tangtai, Guiping road) Zaobao-Yousheng Zaoyang Gaoju, Yousheng Highway (village road) Zaobao-Wujiashan Zaoyang Gaoju, Maliu Highway (village road) Total 3 10 1.3 Project change 25. At present, there is no project change occurred.

8 2 LA & HD Impacts 26. 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 LAR impacts are relatively scattered, and the quantity of LAR is not huge. Project LA&R started to be implemented in August 2016. External monitoring agency of project LA&R counted and registered the affected quantity and varieties of the project. Confirmation has been made in baseline report for relocation and settlement. In February 2017, external monitoring agency monitored the affect of project relocation for a second time, and confirmed the affected quantity of project acquisition and demolition. See details in table 2-1~table 2-3. 2.1 Affected type 27. (1) Land: LA&R types of this subproject are classified into: irrigable land, dry ground, homestead, hilly land, and woodland. 28. (2) House: demolished houses of this project include the following four types: brick structure, brick- wood structure, civil structure, simple structure. 29. (3) Housing auxiliaries: enclosure, toilet, archway, breeding house, etc. 30. (4) Ground attachments: include fruit tree, timber tree, nursery, adopting mu as compensation calculation unit. 31. (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 resettlement impacts of the subproject 32. In this subproject, a total of 302.42 mu of rural collective land areas will be permanently acquired, including 84.53 mu of dry ground, 17.51 mu of housing plots, 126.75 mu of forest land, and 73.63 mu of barren land. All is collectively-owned land acquisition. Yanba-Dongqiao Highway involves 46.61 mu of temporarily-occupied land, including 29.16 mu of dry land and 17.45 mu of paddy field. See details in Table 2-1 for the condition of permanently acquired collective land. 33. The project will involve 7,707 m2 of building demolition, including 5,613 m2 brick concrete building, 250 m2 of brick-wood buildings, and 1,844 m2 earth wood housing. Zaobao-Yousheng Highway is not affected by LA&R. See Table 2-2 for reference. 34. According to the survey, during the implementation of this subproject, 1,442 persons in 386 households are affected by LA&R. 35. 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 serves as the calculating unit of compensation cost. Beside Ankang - Xunyang Highway and Yanba - Dongqiao Highway, scattered ground attachments are covered in the pavement of two village roads fundamentally.

0 Table 2-1 Data of acquired land (February 2017)

Acquisition Permanent land acquisition (mu) expenditure Village Road Town (ten AHs APs committee/community Irrigable Dry Hilly Homestead Forest Wasteland Subtotal thousand land ground land Yuan) Dongwan 0 12.53 0 2.08 4.01 0 18.62 38.01 35 116 Ankang-Xunyang Zaoyang Highway Zaoyang 0 26.57 0 6.9 26.36 0 59.83 95.13 92 373 Longquan 0 12.68 0 5.95 0 0 18.63 45.09 112 396 Subtotal 3 0 51.78 0 14.93 30.37 0 97.08 178.23 239 885 Heihu 0 9.52 0 0.23 0 3.67 13.42 25.60 13 52 Yanba-Dongqiao Yanba Tangtai 0 10.68 0 0.67 20.15 3.72 35.22 39.58 21 85 Highway Guiping 0 8.47 0 0.87 46.57 0 55.91 46.42 28 112 Yinghu Dongqiao 0 0.78 0 0.35 29.66 0 30.79 17.57 35 158 Subtotal 4 0 29.45 0 2.12 96.38 7.39 135.34 129.17 97 355 Zaobao-Yousheng Gaoju 0 0.8 0 0 0 22 22.8 9.70 8 34 Zaoyang Highway Yousheng 0 0.5 0 0 0 23.7 24.2 9.55 10 40 Subtotal 2 0 1.3 0 0 0 45.7 47 19.25 18 74 Zaobao-Wujiashan Gaoju 0 0.8 0 0 0 11.3 12.1 5.96 11 42 Zaoyang Highway Maliu 0 1.2 0 0.46 0 9.24 10.9 7.27 21 86 Subtotal 2 0 2 0 0.46 0 20.54 23 13.22 32 128 Total 3 10 0 84.53 0 17.51 126.75 73.63 302.42 339.87 386 1442

1

Table 2-2 House Demolition

House demolition (㎡) Affected by HD

Road Town Village Brick & Brick- Earth- Subtotal Hs Ps concrete wood wood Dongwan 650 80 0 730 3 12 Ankang-Xunyang Zaoyang Zaoyang 3270 0 770 4040 12 46 Highway Longquan 1106 0 0 1106 4 15

Subtotal 5026 80 770 5876 19 73 Heihu 0 0 150 150 1 4 Yanba Tangtai 76 0 380 456 6 27 Yanba-Dongqiao Guiping 311 27 409 747 7 36 Highway Yinghu Dongqiao 200 43 55 298 4 28

Subtotal 587 70 994 1651 18 95 Gaoju 0 0 0 0 0 0 Zaobao-Yousheng Zaoyang Yousheng 0 0 0 0 0 0 Highway Subtotal 0 0 0 0 0 0 Gaoju 0 0 0 0 0 0 Zaoyang Zaobao-Wujiashan Maliu 0 100 80 180 2 8

Subtotal 0 100 80 180 2 8 Subtotal 5613 250 1844 7707 39 176 Proportion % 72.8% 3.3% 23.9% 100 \ \

Table 2-3 Data of Ground Attachments (February 2017)

Ankang-Xunyang Yanba-Dongqiao

Project Unit Highway Highway Subtotal Quantity Quantity Livestock pen ㎡ 110 21 131 Brick fence m 410 0 410 Toilet per 8 2 10 Streetlight per 15 0 15 Gate per 1 0 1 Well per 13 0 13 Pole per 141 13 154 Cable m 25700 0 25700 Fruit tree per 2799 0 2799 General timber per 4332 267 4599

2 2.3 Affected vulnerable groups

36. The vulnerable groups affected by the project mainly include the elderly with no other supporting family members, women headed families, orphans, family under MLSS, the disabled, poverty families, etc. A total of 86 households of vulnerable groups are affected by the project. 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 in Hanbin District

Type Definition standard Number of households (HH) Annual per capital income lower 21 Very poor under MLSS than CNY1560. Single-parent with children under 14 10 Single-parent family years old, family without father or mother (divorce or death) Family with women as primary 14 Women lead family labors, without young and middle- aged men labors (18-55 years old) The elderly over 60 years old without 8 Elder family children, relatives and other supporting members Family with the members identified 10 The disabled as level I or level II disabled according to national standard Family with member losing work 23 Family with long-term patients capacity due to disease or need long-term medical care Total 86 Note: above aggregated and smmary data has excluded repetitive computation, according to poverty standard that Hanbin District annual income is less than CNY 2950 in 2016, 86 households belonging to vulnerable groups are poor households. The number of vulnerable families increased 8 households than the planned data of relocation, beside the natural error between actual measured data and planned data, the rise of poverty standard (annual per capital income increased to CNY 3,015 from CNY 2,780) also expands the scope of poor families. However, the amount of recovery fund for vulnerable groups in this plan will not be affected. Because in recent two years, the state had conducted targeted poverty alleviation and made significant result, vulnerable groups got more attention and compensation fees and poverty degree deceased significantly. Therefore, the planned 1% recovery amount can meet the need.

37. According to the survey, poverty causes include 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 huge burden to the families.

3 3 Monitoring on project LA & HD

38. In July 2016, relocation and resettlement agreement was signed and project LA&R monitoring work was initiated. From August to September 2016, monitoring personnel measured the resettlement impacts of project and carried out monitoring of Phase I for each link of compensation payment for LA&R and the signing process of each party’s agreement. From February to March 2017, monitoring unit carried out external monitoring of Phase II for affected area of the subproject. Scope for external monitoring of two phases covered 19 administrative villages in 6 towns. 3.1 Scope of monitoring

39. The monitoring of the Project contains three parts: (1) land acquisition, housing demolition and resident relocation impact survey; (2) The project affected area socio-economic survey; (3) living standard survey of affected persons. 40. (1) Main contents of land acquisition, housing demolition and resident relocation impact investigation are: a. The quantity of the project occupied land, housing 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 demolishing buildings of the project; compensation of housing demolition; d. The economical situation of the affected households; e. The economical situation of the affected villages; f. The bearing capacity to the land acquisition, housing 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.

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

42. (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; 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.

4 3.2 Introduction of investigation agency

43. Monitoring of the project affected area is undertaken by Shaanxi Kexin Consulting Co., Ltd. entrusted by Hanbin District Traffic Transport Bureau, Shaanxi Province. Shaanxi Kexin Consulting Co., Ltd. bears completed 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, housing 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, housing 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, housing demolition and relocation of Shaanxi poor rural development; ‹ 2002.6-2003.12 Loan project of Asian Development Bank- preparation for RP on land acquisition, housing demolition, resident relocation, poverty reduction, social investigation, project LA&R 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 RP on LA&R 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, housing demolition and relocation of Shaanxi Ankang road development project ( Ankang to border of 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 relocation of Jiangxi Shihutang Navigation and Hydro-power Complex Project (Cooperative project); ‹ 2010.6-2011.7 Preparation of RP on LA&R of “Shaanxi Emergency Assistance for Wenchuan Earthquake Reconstruction Project” (loan project of Asian Development Bank). ‹ 2010.7-2012.12 Preparation of LA&R of “Xi’an Urban Road Network Improvement Project” (loan project of Asian Development Bank). ‹ 2013.1-2015.7 Preparation of monitoring report on LA&R of “Xi’an Urban Road Network Improvement Project” (loan project of Asian Development Bank).

44. Besides the above work, every year the panel will hand in some monitoring and evaluating reports to World Bank and ADB. The panel obtained the affirmation and praise from the owners, World Bank and Asian Development Bank. The panel owns more than 20 consulting experts and information investigators, among whom 10 have advanced titles. At present, Shaanxi Kexin Consultant Company

5 has become a famous consulting organ of land acquisition, housing demolition and resettlement in northwest of China. 3.3 Investigation methods

45. The interactive monitoring method, which becomes popular in the world recently, was adopted in the project. Meanwhile, by combining traditional available method of monitoring investigation, increasing participatory method to monitoring investigation becomes an outstanding feature of this monitoring investigation. The advantages are as below: both the interest-relevant and non- interest-relevant took part in the investigation, as participants of monitoring work, 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: 46. 1According 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. 47. 2The application of the traditional survey methods: field work, household investigation, villagers conference, visiting relevant bureaus in charge looking up statistics, local chronicles and laws. 3.4 Monitoring procedures

48. Relocation agreement of the project was signed, and project land acquisition and housing demolition work started in July 2016. From August 2016 to September, monitoring personnel retrospectively monitored the resettlement impact of project and signing process of agreement between parties, and tracked and monitored each link of payment and compensation for land acquisition and housing demolition of project. Monitoring unit carried out external monitoring of Phase II for affected area of project, covering 10 affected administrative villages, and tracked and monitored the affected households and villagers of project in the external monitoring of Phase I. The monitoring panel reviewed 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 and households of all the villages, and the industry structure, economic advantage and disadvantage, the affect of LA&R, and the economic rehabilitation measures in the following three years, and improved economic recovery plan for

6 3 tracking and survey villages. 49. Meanwhile, the monitoring panel held a systematic survey on the socioeconomic development in the affected area, and held discussions with the relevant departments 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 Ankang City

50. Ankang City is located in the southeast of Shaanxi Province, adjacent to Qinling Mountain to the north and Bashan Mountain to the south. East-west Hanjiang River crosses it and a basin valley is in the center. Ankang City administers 1 district and 9 counties such as Hanbin District, Xunyang County, Baihe County, Shiquan County, Pingli County, Ziyang County, Langao County, Ningshan County, Zhenping County and Hanyin County as well as 161 towns/townships, with an area of 23,529 km2 and a population of 2.65 million. 51. In 2016, Ankang City achieved the regional GDP of CNY 78 billion. The general financial revenue was CNY 7.78 billion (for the city), including CNY 10 billion for primary industry, CNY 47.5 billion for secondary industry and CNY 28.5 billion for tertiary industry. The urban per capita disposable income is CNY 26,140, increasing by 9% than that in last year; rural per capita net income is CNY 8,780, increasing by 11% than that in last year. See Table 3-1 for details. Table 3-1 Social and Economic Status of Ankang City in 2016

No. Item Unit Ankang City 1 Land area km2 23529 1.1 Cultivated land area 10,000mu 570.14 2 Population 10000Person 265 2.1 Agricultural population 10000Person 117.45 2.2 Non-agricultural population 10000Perdons 147.55 3 GDP CNY 100 million 860.0 3.1 Primary industry CNY 100 million 100.0 3.2 Secondary industry CNY 100 million 475.0 3.3 Tertiary industry CNY 100 million 285.0 3.4 Per capita GDP CNY/person 32452 4 Urban per capita disposable income CNY/person 26,140 5 Rural per capita net income CNY/person 8,780 Source: 2016 planning bulletin of national economy and social development of Ankang City

2) Socioeconomic profile of Hanbin District

52. Hanbin District is the center of politics, economy, culture, and traffic information in Ankang City of Shaanxi province. Located in the southeast of Shaanxi Province and central region in Ankang City of upstream of Hanjiang River, it is adjacent to Xunyang County to the east, Ziyang County and Hanyin County to the west, Zhen’an County in Shangluo City and Ningshan County in Ankang City to the north, and Pingli County and Langao County to the south. With the area of 3,652 km2, Hanbin District administers 30 towns, 4 subordinate offices, 876 administrative villages, and 69 neighborhood committees, with a total population of 1,008,400.

7 53. In 2016, it achieved GDP of CNY 25.36 billion, increasing by 10% compared to 2015. The expected fiscal revenues was CNY 2.34 billion, an increase of 4%, covering general budget revenues of CNY 632 million, up by 12%; the urban per capita annual disposable income was expected to reach CNY 26,400, and the rural per capita net income reached CNY 8,610, increasing by 8.5% and 9.6% respectively. See Table 3-2 for details. Table 3-2 Social and Economic Status of Hanbin District in 2016

No. Item Unit Hanbin District 1 Land area km2 3463 1.1 Cultivated land area 10,000mu 148.45 2 Population 10000Person 100.84 2.1 Agricultural population 10000Person 74.96 2.2 Non-agricultural population 10000Persons 25.88 3 GDP CNY 100 million Yuan 253.6 3.1 Primary industry CNY 100 million Yuan 22.71 3.2 Secondary industry CNY 100 million Yuan 115.13 3.3 Tertiary industry CNY 100 million Yuan 115.76 3.4 Per capita GDP Yuan/person 39763 4 Urban per capita disposable income Yuan/person 26400 5 Rural per capita net income Yuan/person 8610 Source: 2016 planning bulletin of national economy and social development in Hanbin District of Ankang City. 3Socioeconomic profile of affected townships and villages

54. The project LA&HD affects three towns in Hanbin District, including Zaoyang Town, Yanba Town and Yinghu Town. There are 19,762 households with 79,429 people and a rural labor force of 51,629 in the three towns. (See Table 3-3) Table 3-3 Selected Indicators of the Affected Towns in 2016

Rural Per capita Rural per capita Population Cultivated HH Town HHs actual labor cultivate land annual net (persons) land (mu) Size (person) (mu/person) income (CNY) Zaoyang Town 5792 23863 15511 29975 4.12 1.26 8625 Yanba Town 3845 15572 10122 16500 4.05 1.06 6713 Yinghu Town 10125 39994 25996 37292 3.95 0.93 10052 Total 19762 79429 51629 83767 4.02 1.05 8968 Data source: Survey on impacts on socioeconomics and LAR in February 2017. 3.5.2 Survey of rural women in project areas

55. In 2016, the new population statistics has not been made in Hanbin District. General situation of women in the report of this stage is mainly described based on the data of baseline report, and update has been made in the information of sampling survey, see the contents below:

8 56. Population in Hanbin District is 1,008,400; proportion of female population was 48.3%, of which the rural women accounted for about 69.5% in total female population. Women are playing important roles in agricultural sector as well as rural family life. 57. Based on the monitoring survey of Phase II, in 2016, there were smaller differences in the education level between women and men compared with that in 2015. To be specific, 22 persons in 205 sampling women never accepted formal education, accounting for 22%, higher than male respondents (11.2%). Similarly, female respondents with 7~9 years of education (25.9%), is lower than that for males (38.5%), and female respondents with 10-12 years of education (2.9%), is lower than that for males (9.3%). Meanwhile, 49.2% female obtained primary education, lower than that of men (41%). Based on the above data, differences of education level between female and male is becoming smaller. 58. The respondents who work outside increased slightly than previous year. Among the 429 persons, 54 persons worked outside for medium and long term, accounting for 12.6%. Most of the persons working outside were male (accounting 14.3%), while females accounting for 5.8%. In addition, 25.9% males worked outside based on season, while only 8.3% female were the same. Female need to manage farm work and take care of family members. Above data and proportion basically remained the same as previous year, no obvious change. 59. All females take charge for household work. The survey indicated that women only take slightly higher domination position than men in tiny business activity. However, among the respondents, only 1.5% of females were village cadres compared to males (5.2%), indicating that women’s participation in decision-making at village level was lower than that for men. 60. Male still plays a leading role in 84% families (265 households). In many cases, the vast majority of families is based on the form of “men dominate outside, women dominate inside, men manage great event, and women manage small matter” to make decisions. In decision making, such as purchasing car, house or managing shops, respondents all indicated that males tended to have more experience and knowledge than females. The responsibility usually belonged to householders in some major family decision making, such as renting land and borrowing, and males also took the lead in such aspects. For other family lives, such as family savings, purchasing television, furniture, washing machine, electric cooker and other durable and daily consumable goods, males and females shared equal rights in decision making, and females even had more dominant power. Participation of females in community was still less than that of males, because there were fewer females in decision making agencies. Female members in village committees accounted for less than 10% in 10 investigated villages. 3.5.3 Survey of poverty in project areas

61. Because poverty population in the state, Shaanxi Province and Hanbin District has not been released in 2016, therefore, data analysis on poverty persons of the project will be updated in next report.

9 3.5.4 Survey data of project affected villages A. Socio-economic Surveys

62. The project road traverses 10 administrative villages/communities of the 3 affected townships. As shown in Table 3-4, the average household size in affected village is 3.5~5 people, per capita cultivated land is 1.0~2.0mu, per capita annual income is CNY 4,548~9,250. The conventional agricultural crops are mainly corn and wheat. According to the survey, the affected villages are mainly distributed along the existing roads which need to be improved. Benefiting from the economic development in Ankang City and Hanbin District, non-agricultural economy realizes rapid development and agriculture is not the main industry any longer. Hence, the income source of villagers in the project area mainly comes from secondary and tertiary industry. Table 3-4 Sample Household Distribution by Road and Town

Cultivat Per Rural net Town/town Populati Lab ed HH capita income Road Village HH ship on or land(mu size cultivat (CNY/perso ) ed land n/year) 1,4 Dongwan 579 2,049 2,048 3.54 1.00 9,250 Ankang- 98 1,1 Xunyang Zaoyang Zaoyang 520 2,012 2,039 3.87 1.01 8,678 Highway 85 Longquan 368 1,305 856 1,399 3.55 1.07 7,985 1,46 3,5 Subtotal 3 5,366 5,486 3.66 1.02 8,625 7 39 Yinghu Dongqiao 438 1,928 802 3,364 4.40 1.74 7,845 Yanba- Heihu 138 578 315 966 4.19 1.67 6,450 Dongqiao Highway Yanba Tangtai 139 548 320 1,022 3.94 1.86 5,545 Guiping 189 945 511 1,127 5.00 1.19 4,548 1,9 Subtotal 4 904 3,999 6,479 4.42 1.62 6,105 48 Zaobao- Gaoju 247 1,050 627 1,750 4.25 1.67 4,948 Yousheng Zaoyang Highway Yousheng 198 985 702 1,600 4.97 1.62 4,969 2 1,3 Subtotal 445 2,035 3,350 4.57 1.65 4,945 29 Zaobao- Gaoju 247 1,038 629 1,750 4.20 1.69 4,985 Wujiashan Zaoyang Highway Maliu 215 1,012 419 2,015 4.71 1.99 5,150 2 1,0 Subtotal 462 2,050 3,765 4.44 1.84 4,998 48 3,27 7,8 Total 3 10 13,450 19,080 4.10 1.42 6,358 8 64 Data source: Survey on impacts on socioeconomics and LAR in February 2017..

B. The data of Survey sample

63. Survey villages cover three towns affected by land acquisition and housing demolition of Hanbin District subproject, and 6 sample villages including four administrative villages of Dongwan, Zaoyang, Yousheng and Maliu in Zaoyang Town and two administrative villages of Tangtai and Guiping in Yanba Town, with two administrative villages for Ankang-Xunyang Highway, two administrative

10 villages for Yanba-Dongqiao Highway, one administrative village for Zaobao-Yousheng Highway, and one administrative village for Zaobao-Wujiashan Highway. Sampling survey households amount to 207, accounting for 53.6% of 386 households. 104 households among 207 affected households are selected from 6 sampling villages. The sampling proportion is 50.2%. Table 3-5 List for Sampling Proportion (February 2017)

No. Sample village Town AHs Sampling households Sampling proportion 1 Dongwan Village Zaoyang Town 35 19 54.3% 2 Zaoyang Village Zaoyang Town 92 42 45.7% 3 Tangtai Village Yanba Town 21 12 57.1% 4 Guiping Village Yanba Town 28 15 53.6% 5 Yousheng Village Zaoyang Town 10 5 50.0% 6 Maliu Village Zaoyang Town 21 11 52.4% Total 207 104 50.2%

1Nationality and gender

64. The 104 sample AHs have a total population of 429, an average population of 4.13 per household. There are no ethnic minority groups. There are 205 females (47.8%) of the total surveyed population. They mainly engage in agricultural plantation, housework, and family care. 2Education background

65. Of the 104 surveyed households (429 people), 131 people have received primary education (30.5%); 218 people received junior high school education (50.8%); 23 people had received junior college or above education (5.4%); 57 people have received no education (13.3%). 3Age structure

66. Among the 104 household 429 sampled people, 92 are aged under 18 years (21.4%), 298 are aged from 18~60 years (69.5%), and 39 people over 60 (9.1%). 4Annual household income

67. The surveyed affected households have an average annual income of CNY 26,900 of which agricultural income forms CNY 4,670 per household, animal husbandry income CNY 2,380 per household, main household income comes from industry and sideline of CNY 19,850, 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 lent to relatives to use without charge. In total, per capita annual net income is CNY 5,875. 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.

11 5Annual family expenditure

68. The per household total annual expenditure is CNY 24,545 including operating expenditure of CNY 3,845; living expenditure of CNY 14,050; other expenditure of CNY 6,650. Table 3-6 Survey summary sheet for basic information of sampling families

Survey project 104 AHs

Time February 2017

Population (person) 429 Labor (person) 238 Population engaged in agriculture (person) 98 Per capita cultivated land (mu) 1.4 Annual per capita net income (CNY) 5,875 Per household cultivated land (mu) 4.6 Annual per mu output value of cultivated land (CNY) 1,056 Farming (CNY) 4,670 Annual per household net income Cultivation (CNY) 2,380 26,900 (CNY) industry and sideline (CNY) 19,850

Productive expenditure (CNY) 3,845

Annual per household expenditure Living expenditure (CNY) 14,050 24,545 (CNY)

Other expenditure (CNY) 6,650

Per capita housing (m2) 35 Productive mechanical value (CNY’0000) 1.3 Value of major living goods (CNY’0000) 2.6

12 4 Land acquisition, housing demolition and resettlement 4.1 Affect and cost of LA & HD

69. Up to February 2017, land acquisition of Hanbin Section in AnXun Roadway Project has signed land acquisition with APs, with 47.495mu of land in total, including paddy land (irrigable land) of 1.726mu, dry flat land of 23.001mu, dry sloping land of 35.457mu, homestead of 1.726mu, forestland (including farmland returning to forest) of 18.365mu. But at present, compensation expenses for land acquisition have not been paid. 70. House demolition of 9 households in Hanbin Section of AnXun Roadway Project has been completed totally, involving in 37 persons, with total acquisition and demolition area of 1,993.27m2, of which, brick-concrete structure of category I of 1,219.9m2, brick-wood structure of category I of 366.92m2, brick-wood structure of category II of 186.72m2, civil engineering structure of category I of 82m2, simple house of 137.73m2. Total expenses for acquisition and demolition are CNY 1,932,409, including CNY 1,590,342.00 for house, CNY 90,567.00 for ground attachments, CNY 36,500.00 for transitional expenses of house, and CNY 215,000 awards for resettlement. 71. For other APs that have not signed the agreement, PMO is negotiating with them actively, to appropriately arrange affected persons; and compensation for all types is based on the principle of resettlement plan, and is implemented per agreement of LA & HD agency, affected villages (group) and affected persons.

Table 4-1 Statistical table for expense on land acquisition and house demolition of Hanbin Project (February 2017)

LA Ground attachment House demolition Total (CNY’0000) (CNY’0000) (CNY’0000) (CNY’0000) - 9.0567 184.1842 193.2409

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

72. According to Land Acquisition Policy in Shaanxi Province (Shan Zheng Ban Fa [2010] No.36), the unified AAOV and compensation times for Hanbin District in the project is determined by Land Acquisition Policy in Shaanxi Province, the former is CNY 1,197, and the latter is 25, as well as the compensation standard is CNY 29,928/mu. However, based on Supplementary Notice on Land Acquisition and House Demolition of Central City Construction and Relevant Endowment Insurance Problems for and House Demolition Affected Households in Ankang (An Zheng Fa [2009] No.15), compensation standard (covering land compensation and resettlement subsidy) for cultivated land (dry land) is improved to CNY 54,000/mu. In order to make affected persons gain the interests, the compensation standard in Ankang City (An Zheng Fa [2009] No.15) is taken in resettlement plan as basis of resettlement policy, and the higher standard

13 (CNY 54,000 and CNY 29,928) is adopted. But compensation rate for homestead is not defined in Notice on Land Acquisition and House Demolition of Central City Construction and Relevant Endowment Insurance Problems for and House Demolition Affected Households in Ankang (An Zheng Fa [2009] No.15). The following contents are added for compensation standard of homestead in the resettlement plan. 73. 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 project shall not exceed the legal limit – six times the unified AAOV of the project area. However, during the field consultation, the APs pointed out that this policy was made a long time before 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 48,600 per mu as the project standard for rural housing plot. The above land involved is confirmed to be one category of the land, and as for the compensation after project implementation, the land category identified by local land department shall prevail. Table 4-2 Compensation Standard for the Project Land Unit (CNY/mu)

Irrigable Dry flat Dry slope Forest Home Category Others Barren land land land land -land stead Compensation 60,000 54,000 45,000 22,500 48,600 18,000 No compensation Standard Note: The above standards are available for acquisition of collective land. But land acquisition of state- owned land is directly appropriated without compensation.

4.2.2 Compensation Rate for House Demolition

74. The compensation for all houses demolished will follow these principles： 75. 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 RAP. Table 5-4 has the detailed cost estimations based on the local house construction practice by type. According to demolition resettlement plan and structure and type of house, the affected persons shall receive full replacement price without depreciation for the original house. Meanwhile, the affected people can use the building materials of the original

14 house free of charge/cost. 76. Villagers who lose their house can get homestead from their villages and choose scattered resettlement, or choose centralized resettlement by participating in new rural construction scheme or other planning construction projects of the government, or self-settlement by using cash compensation. Relocation households will obtain temporary transition fees before moving into the new houses. They can also arrange themselves or ask the village or PMO to assist in rental houses for them. 77. According to relevant regulations of ADB policy and state, price evaluation shall be used for urban resident’s house on state-owned land and village residents’ house on collective land in Hanbin District. Compensation shall be given for house demolition based on “replacement price”, and it shall be determined by evaluating market price, which is not less than basic price of compensation formulated in the plan. And the price in the plan is basically equal with market price for house in the same area. Homestead for relocation shall be obtained before demolition, and specific land shall be determined by the village committee by convening the villager congress, and it shall be chosen within their group or village as far as possible. The “three supplies and one leveling” for the homestead will be carried out by the project construction unit, and the expenses shall be included in construction budget. 78. According to the document of Han Zheng Ban Fa [2015] No.111, this resettlement plan updates the compensation standard for LR&D: CNY 1,000/m2 for frame structure, CNY 900/m2 for brick- concrete structure of category I, CNY 850/m2 for brick-concrete structure of category II, CNY 750/m2 for brick-wood structure of category I, CNY 700/m2 for brick-wood structure of category II, CNY 600/m2 for earth-wood structure of category I, CNY 550/m2 for earth-wood structure of category II, and CNY 200/m2 for makeshift. During the period of resettlement, nonrecurring subsidy is paid to each household: CNY 4,000 for three people or more, CNY 4,500 for 4~6 people, and CNY 5,000 for 7 people or more. Based on the document of Shan Zheng Ban Fa [2014] No.47 issued by the General Office of Shaanxi Province People’s Government for resettlement work in Southern Shaanxi, the incentive fee is CNY 10,000~45,000 for each relocated household. Assuming the incentive fee for each relocated household is CNY 20,000 and average housing area per household is 152 m2 (see Hanbin District resettlement plan), each relocated household can obtain extra CNY 132/m2. With the addition of the original relocation standard, the new compensation standard is higher than the original one in fact. 79. The compensation standards adopted in this plan is listed in Table 4-1. It is discussed the affected people and local PMO and matches the current local market price of replacement. 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

15 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 CNY Frame 1,000 /m2 Including policy incentive CNY compensation fees, the real Brick-concrete 900 /m2 compensation is up to CNY Compensation 1,032/m2 for house Including policy incentive CNY Brick-timber 750 compensation fees, the real /m2 compensation is up to.CNY 880. Including policy incentive CNY Earth-wood 600 compensation fees, the real /m2 compensation is up to.CNY 732 The removal reward is merged into Policy this item. The removal reward and CNY / incentive 10,000~45,000 the policy incentive compensation HH Other subsidy compensation are based on distance, location, for house transitional period and so on. demolition Resettlement subsidy for each CNY / household: CNY 4,000 for 3 people Transition fee person/ 4,000~5,000 or more; CNY 4,500 for 4-6 people; month CNY 5,000 for 7 people or more.

4.2.3 Resettlement plan and economic recovery measure

80. The component will involve demolition of 7,707 m2 of housing and will affect 39 households with 176 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 Project 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 homestead allocation a) Cash compensation without new house construction

81. 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 for 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 and cash reward of CNY 10,000 per person will be granted once the written application is approved. b) Cash compensation with existing house expanding or rehabilitation

16 82. 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 and cash reward of CNY 10,000 per person will be granted once the written application is approved. c) Reconstruct new house with purchasing homestead by APs

83. For those who choose to construct new houses by themselves and purchase housing plot by themselves, or they use their existing housing land, the project will compensate their housing plot and structures according to the Project standards. After several discussions with AHs, it was agreed that the current compensation standard is generally enough to purchase similar condition housing plot in the same area. If an AH purchases a housing plot cheaper than the compensation standard, the savings belongs to the AH. If a household chooses to reconstruct their new house in a better place (e.g. closer to town center area or a wider space) voluntarily, they will need to pay the additional costs by themselves.

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

84. For those who are willing to purchase new houses on residence area based on village development planning of new village, cash compensation for homestead and replacement expenses will be paid to them directly. In terms of discount negotiation and overall implementation condition, both location and quality of house are better than that of planned demolition house, and the promised price is based on construction cost, and is higher than compensation standard but lower than price of commercial housing. AHs that accept survey can continue to discuss the details of selection for centralized relocation site. In September 2016, resettlement site of Yanba Town entered Phase III, and near 5,000 persons can be settled, so the affected persons of Yandong Highway can be settled basically.

(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. There will be no additional cost to the AHs. 86. The provided housing plot can either be located in a concentrated area or a single housing plot. In either case, water, electricity supply and road will be made available, and the land leveling will be done by the project. The design fee also will be covered by the project. Other subsidy policies. AHs also enjoy the following rights and interests: 87. (1) Enjoy labor employment training at first; 88. (2) Enjoy social security policy in project implementation area; people who comply with the

17 requirements can be included into Employment and Social Security System for Land- acquisitioned Villagers in Ankang City. 89. Enjoy appropriate positions in project implementation area. Including posts engagement of contracts from PMO and posts from enterprises in the project implementation area.

(4) Economy recovery plan for vulnerable groups

90. The project shall establish support fund of CNY 252,000 for the vulnerable groups to support the vulnerable groups affected by the project. The main affected vulnerable groups all are the poor, including single parent family and women-led 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. 91. If AHs want to develop non-agricultural business, such as purchasing vehicle for business traffic, running maintenance point, and developing other businesses, the priority in loan shall be given. A. Land acquisition affected households ‹ Priorities will be given in providing land transfer information, thus assisting them in obtaining land needed in production development. ‹ 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 handled in priority; ‹ Priorities will be given in LEF endowment insurance and new rural endowment insurance to eligible AH.

‹ If AHs want to develop non-agricultural business, such as purchasing car for business traffic, running maintenance point, and developing other businesses, the priority in loan shall be given for family seriously affected. B. House demolition affected households ‹ Priorities will be given in providing information to vulnerable group to participate in the resettlement exchange platform. ‹ If the senior without family, poor households and other special vulnerable groups choose to reconstruct new house by themselves, priority will be given in arranging relocation housing land. In addition, a one-off extra poor subsidy support payment of CNY 5,000 will be provided once the corresponding certificates are provided. ‹ If special vulnerable group such as Wubao (five-guarantee households), and the senior without family supported by the Civil Administration Department in the house demolition empty their house within prescribed time limit, a one-off extra poor subsidy support of CNY 3,000 will be provided once the corresponding certificates are provided ‹ Minimum size housing will be guaranteed for the poor.

C. Including eligible vulnerable groups in MLSS as a priority 92. According to the Minimum Living Standard Scheme (MLSS) policy of Hanbin District of Xunyang

18 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 290/month. D. Providing rural medical assistance to eligible vulnerable groups 93. Rural medical assistance will be provided to eligible vulnerable groups by governments of Hanbin District and Xunyang County Government to solve the problems that they have difficulty in receiving medical treatment.

(6) Women’s Development Measures

94. 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. 95. Ensure women’s equal rights: During the period of formulating RP, women representatives of affected persons and Women’s Federation are met respectively, which aimed at making women express their needs, expectation and suggestions for resettlement and recovery measures. Most women including female head of a household stressed their concerns, namely: a. getting compensation on time; b. choosing resettlement ways and residence land; c. using limited cultivated land to improve agricultural production; d. using compensation expenses provided by the project or petty loan to run a small business at home or agricultural product trade fair or market. Relevant measures for solving these concerns have been included in RP. 96. Provide preferential training method and contents for women: 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 skills working in factories. Women’s training needs has also been covered in RP, and training budget is 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. 97. Provide and assist women in applying for job opportunities related to the project: 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.

(6) Recovery Plan of Special Facilities

98. The special facilities affected by the project are mainly power lines, telecommunication lines, etc.

19 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.

20 5 Public Participation

99. 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 March 1, 2017. Details are shown in Table 5-1. Table 5-1 Public consultation and participating activity

Participants and Time Organizer Objective Issues, comments and suggestions number Shaanxi

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

100. According to the requirement of the RP and ADB, all the stages of the project implementation should conduct public consultation 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. 101. 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 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 a smooth implementation of project. At present, most resettlement will of affected villagers tend to accept currency compensation and allocation of homestead, and they

21 think scattered resettlement can be conducted by using straightening idle land. Most people consider that the site of centralized relocation is limited and will destroy the original network of interpersonal relationships, so it is better to stay the original place. However, relocation households who have signed agreement are satisfied with compensation expenses, and they understand and support the inconvenience brought by project construction. In addition, they hope that the project can be completed as far as possible, and they can get rid of temporary resettlement.

22 6 Conclusions and Suggestions 6.1 Assessment on project acquisition and resettlement

102. (1) 302.42 mu of land in the project is permanently expropriated and 7,707 m2 buildings are demolished; there are 386 households (1,442 people) affected by land acquisition of the project, of which 39 households (176 people) are simultaneously affected by housing demolition and land acquisition. It was founded in the second external monitoring survey that land acquisition agreement for totaling 47.495mu of land was signed in Hanbin Section of Anxun Highway Project, including 1.726mu of paddy field (irrigable land), 23.001mu of dry plain ground, 35.457mu of sloping dryland, 1.726mu of homestead and 18.365mu of forestland (including farmland returning to forest), but the land acquisition cost has not been paid. It can be seen from monitoring condition that land acquisition implementation scheme was based on the original road track basically, and did not affect the life quality of affected person; in addition, the project implementation party also considered the affected households’ benefits comprehensively, and brought more convenient transportation and logistics through project implementation, which assisted in improving life and production condition greatly. Hence, the masses showed great expectation for the project. 103. (2) House demolition has been completed for 9 households, which involved 37 persons, total demolition area of 1,993.27m2, with a total of CNY 1,932,409 of house demolition expenses are paid. At present, relocation household has moved in makeshift shelters. In project demolition, the benefits of affected persons by project and residents along the line were fully considered, and the related parties are encouraged to participate in these projects actively, especially for benefits of the weak, female and poor population, special attention was given in project, so as to protect these personnel from adverse effect of project acquisition and demolition. The project coordinating group established in project implementation village has made a fruitful work in encouraging community member to participate, project participation and project implementation and supervision, etc., and it has become an effective carrier in realizing project participation. 104. (3) Due to economic and social development and construction of all-round well-being society, especially the implementation of local targeted poverty alleviation work, standard of land acquisition and house demolition and compensation, expenses of ground attachments all abode by the principle of “holding the bottom-line standard and pursuing higher instead of lower”, thus some reasonable opinions and requirements proposed by the masses were actively taken in effect of project acquisition and demolition and preparation work, thus ensuring the smooth transition of masses in implementation of the project. Therefore, complaints from the affected household and illegal behaviors did not appear. 105. (4) Because the bidding and bid program of project have not been approved by Shaanxi Highway Management Department, so, at present, the construction of each subproject and land acquisition and house demolition in Hanbin Project have not been constructed except Anxun

23 Highway. Project Party and Supervision Department are driving institution company conforming to the requirements to construction actively. 6.2 Problems and suggestions

106. Our supervision and consulting work have been supported by PMO of Foreign Capital Division of SPTD and Hanbin District Transport Bureau (Hanbin District PMO), thus going smoothly. Besides expressing thanks to various relevant organizations, we propose the following suggestions for later land requisition and demolishing: 107. (1) At present, the most important thing is that the bidding and bid work of project have not started, so the implementation and specific implementation of project are seriously affected; and the masses also very expect that the project can be implemented as soon as possible. It is suggested to actively communicate with Shaanxi Highway Management Department as soon as possible to drive the smooth implementation of bidding and settlement of Construction Party. 108. (2) Hanbin District PMO has done lots of work in land acquisition and house demolition; at present, the personnel arrangement is quite stable, and land acquisition and house demolition personnel has certain understanding for project policy and information, all of which play a positive role in promoting acquisition and demolition management of the project.. However, acquisition and demolition personnel should further understand the policy and master land acquisition and house demolition information more comprehensively, especially in public consultation and information publicity; otherwise, masses will reduce the confidence and support for project construction. It is suggested that related institutions and staffs shall be kept stable in the future work, and strengthen business and policy training at the same time, thus accomplishing twice as much with half effort for project land acquisition and house demolition. 109. (3) Due to the advancement of local resettlement policy, government and Project Office encourage affected person to choose the centralized relocation mode of house demolition; meanwhile, they also can enjoy relocation subsidies provided by government. However, the affected households tend to choose resettlement on site, the requirements of all affected households cannot be fulfilled for shortage of land resources at present. It is suggested that affected household should strengthen supporting infrastructure in resettlement sites, such as education, entertainment facilities, supporting public service, thus exerting great attraction to affected household and providing more policy preferential loans for affected household, to promote them to integrate in through urbanized employment and entrepreneurship, and realize sustainable development for family through land acquisition and house demolition. 110. The external monitoring of this project started to implement in February 2017. The deficiency of incomplete and inaccurate information and data collection in the report shall be complemented in the next resettlement monitoring report.

24 Appendix 1 Scene photos of second external monitoring

Diagram form 1: Acquisition and demolition personnel of project are examining resettlement makeshift shelters on the site

Diagram form 2: External immigration monitoring experts are checking acquisition and demolition and resettlement conditions

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Diagram form 3: Acquisition and demolition personnel of project are discussing resettlement scheme with affected residents

Diagram form 4: Local responsible persons are visiting the affected residents by acquisition and demolition

26 Appendix 2 Resettlement policies of Southern Shaanxi area About Opinions on Further Strengthen and Standardize 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 Statement for details of house demolition (February 2017) Class I Clas Amount Award of Class s I of Class Sim Compen for and brick- I of Total brick II of ple sation ground Transiti compens concret civil compe Total - brick- hous (RMB attachme on fee ation for e- engin nsation timb timber e Yuan) nt (RMB resettlem structur eering er Yuan) ent ed Li 272.1 28.8 269,66 284,29 308,79 Jiayo 27.06 14,635 4,500 20,000 6 8 2.00 7 7 ng Ding 152.0 125. 16.8 254,24 263,31 293,31 Yixia 28.62 9,070 5,000 25,000 0 40 0 4.00 4 4 ng Ai 186.4 69.5 219,93 30,588. 250,52 275,02 Chua 4,500 20,000 4 2 6.00 3 4.3 4.3 nwen Ai 172. 12.0 131,41 142,68 167,18 Chua 11,275 4,500 20,000 00 5 0.00 5 5 nwu Ai Chua 107,30 114,39 138,89 83.00 82.00 7,091.2 4,500 20,000 nhon 0.00 1.2 1.2 g Chen 198.9 56.0 223,83 233,55 308,05 Kaizh 48.04 9,720 4,500 70,000 0 0 8.00 8 8 ong Hou Zhou se 9,792.0 9,792.0 Gaoy foun 9,792 0 0 ao dati on Ding 211.2 24.0 194,88 201,06 225,56 6,187.5 4,500 20,000 Jun 0 0 0.00 7.5 7.5 Ding 199.2 179,28 181,28 205,78 Zhihu 2,000 4,500 20,000 0 0.00 0 0 i 1,219. 366. 186.7 137. 1,590,3 1,680, 1,932,4 Total 82.00 90,567 36,500 215,000 90 92 2 73 42.00 909 09

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