Integrated Road Network Development Project (RRP PRC 40626)

RESETTLEMENT PLAN1

A. Scope of Land Acquisition and Resettlement Impacts

1. The proposed new Longling– Highway Corridor output includes a 135 km expressway and a 23 km Class II road. The expressway starts at the end of the Baoshan-Longling Expressway in Longling County, passes (Luxi City) and ends at Mengmao Township of Ruili City. A new Class II road will continue from the end of the Longling–Ruili Expressway (LRE) to Nongdao Border Port. The link road totals to 23 km in length. It will traverse 35 villages of 12 townships in Longling county, Luxi city and Ruili city.

2. The total permanent land acquisition will be 11,528.2 mu,2 of which the arable land, forestland and other land account for 44.6%, 49.2%% and 6.2% respectively. Total house/building demolition will amount to 73,878.3 m2. It is roughly estimated that a total of 27,500 persons will be affected, including 24,750 persons (90%) by land acquisition, 1,380 persons (5%) by house demolition and 1,370 persons (5%) by both. In terms of area distribution, 5,600 (20%), 14,700 (53%) and 7,200 (26%) persons are from Longling, Luxi and Ruili, respectively.

B. Policy Framework

3. The resettlement objectives are to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels. The Resettlement Plan (RP) is in line with the Chinese laws and regulations, as well as ADB’s Safeguard Policy Statement (2009). Key PRC laws and regulations include: (i) the Land Administrative Law (2004), (ii) the Decision on Reinforcing Reform in Land Administration by the State Council (State Council [2004] No.28), and (iii) Forest Law of the People‘s Republic of (1998). Meanwhile, Yunnan Province also formulated relevant regulations including: (i) Regulations on Land Administration in Yunnan Province (Implemented on 1 January 2000), (ii) Methods of Forest Land Administration in Yunnan Province (No.43 File in 1997), (iii) Notice of Yunnan Provincial People’s Government on Issuing Tentative Method for Basic Endowment Insurance of Farmers Affected by Land Acquisition (Yunzhengfa [2008] 226) (18 November. 2008), and (iv) Unified Standards for Annual Output Value and Regional Integrated Land Price Compensation in Land Acquisition in Yunnan Province (July 2009). All these documents have provided essential guidelines for RP preparation and implementation.

4. The Project compensation and entitlement policy is designed to cover compensation for lost land and non-land assets, including assistance to restore or enhance livelihoods of all affected persons (APs). APs will receive compensation at replacement costs for land and non-land assets in cash. Moreover, various assistance will be available to severely affected persons and vulnerable groups. An entitlement matrix is included in the RP.

C. Resettlement and Rehabilitation

5. With regard to permanent land acquisition, there are six major measures for livelihood restorations: (i) cash compensation for APs to purchase and/or rent arable land and/or forestland use rights in long terms; (ii) allocation of land for vulnerable households either by land adjustment or new farmland reclamation; (iii) cash compensation for APs to invest in agricultural

1 The full resettlement plan is accessible from the following weblink: http://www.adb.org/documents/Resettlement_Plans/PRC/40626/40626-01-prc-rp-01.pdf. 2 1 hectare equals 15 Chinese mu. 2 infrastructure and/or adjust crop and animal production structures; (iv) training of APs, especially women, on agricultural techniques and non-farm skills; (v) provision of endowment insurance subsidy for APs with the per capita arable land of less than 0.3 mu after acquisition; and (vi) priority for employment on project construction.

6. Regarding residential house demolition, there are three major relocation and restoration options: (i) cash compensation and self-purchase of new houses (40.3% of surveyed households, mostly from peri-city villages, prefer this option); (ii) unified planning and provision of house plots by government and APs rebuild their new houses by themselves by using compensations (36.1% of surveyed households prefer this option); and (iii) unified planning and building of replacement houses of equal floor areas by government (18.5% of surveyed households are in favor of this option). In addition, moving and transitional allowances and assistance will be provided to affected households during relocation.

7. As to villages seriously affected, once they are identified upon the completion of final design and detailed measurement survey, a detailed rehabilitation plan for each village will be developed and included in the final RP. Key strategies will include: (i) village specific actions, (ii) integration with ongoing government initiatives, and (iii) integration of resettlement measures with the project's EMDP and other action plans.

8. Special assistance will be provided to vulnerable groups, including: (i) additional relocation subsides, (ii) free labor assistance for relocation if affected, (iii) priority for technical training, and (iv) employment for project construction. The vulnerable groups in this RP include: (i) Wubao3 households, (ii) households with disabled members, (iii) female-headed households, (iv) households of smaller4 ethnic minority groups, and (v) Dibao5 households.

D. Information Disclosure, Participation and Consultations

9. During the preparation of this RP, a number of consultation meetings were organized at prefecture, county, township and village levels. In addition, more than 200 households were targeted and interviewed for sample household socioeconomic survey. A consultation workshop was organized to present this draft RP to various stakeholders from the Dehong prefecture and the affected counties in February and March 2010 that included the ADB project team. During the consultation meetings/workshop and interviews information about the project and resettlement planning activities were provided to various stakeholders. The opinions and concerns raised by various stakeholders about the planning and implementation of resettlement activities were incorporated in the RP. RP updating and implementation will continue to follow the project's participation approach and a follow-up Consultation and Participation Plan is included in the RP.

10. The RP has been made available in Chinese language in the affected townships, counties and prefectures. A Public Information Booklet (PIB) has been disseminated to affected villages and APs in May 2010. Thereafter, the detailed process of the information disclosure and notification procedures used by the local government will be continued (see details in the RP).

3 Households enjoy five guarantees- a community-based relief system: (i) food, (ii) clothing, (iii) housing, (iv) healthcare, and (v) burial arrangement after death. 4 They include De’ang and Achang. 5 Poor covered by the minimum rural living standard program (net income CNY 693/person each year). 3

E. Grievance Redress

11. The Project will ensure that APs have clear and accessible mechanisms and procedures to address complaints and grievances about any aspect of land acquisition, compensation and resettlement. The grievance redress mechanisms include: (i) reconciliation and resolution of complaints and grievances at township level, as possible; (ii) appeal to county resettlement office if the grievance is not resolved at township level or if the AP is not satisfied with the township level decision; (iii) appeal to prefecture resettlement office if the grievance is not resolved at county level or if the AP is not satisfied with the county level decision; and (iv) the APs may choose to appeal to the civil division of a people’s court according to the civil court procedure. APs also have the option to address complaints directly to the Project Resettlement Office.

F. Implementation Arrangement and Schedule

12. The Project Resettlement Office of the LongRui Expressway Company (LREC) will be responsible for the resettlement planning, consultation, financing, implementation and monitoring the delivery of entitlements in time. The local government is responsible for resettlement implementation and delivery of entitlements, as stipulated in the RP. Prefecture, county and township governments will establish their respective resettlement offices and taskforces, together with villagers’ committees and groups, to implement this RP. With the assistance of the local government resettlement offices, LREC will undertake internal monitoring and reporting to ensure compliance with the provisions of the RP. A training program is included in the RP for building the capacities of resettlement personnel at various levels.

13. It is scheduled that land acquisition and housing demolition will be started in April 2011 and most of the resettlement activities will be completed by September 2012. However, rehabilitation of housing and livelihoods may take longer to complete. LREC has agreed to a set of supervision milestones with ADB to ensure timely and effective implementation of the resettlement activities.

G. Resettlement Budget

14. All expenses incurred during land acquisition and resettlement will be included in the general budget of the project. The total estimated resettlement budget is CNY 551.8 million, it includes:(i) costs for permanent land acquisition of CNY 316.5 million; (ii) compensation for temporary land occupation of CNY 24.6 million; (iii) compensation for houses demolition and relocation of CNY 43.7 million; (iv) compensation for scattered trees of CNY 4.1 million; (v) compensation for ground affiliated facilities of CNY 1.6 million; (vi) compensation for special facilities of CNY 12.4 million; and (vii) other costs of CNY 148.9 million. YPDOT and LREC will ensure timely provision of counterpart funds for resettlement and will meet any unforeseen obligations in excess of the resettlement budget in order to satisfy resettlement objectives.

H. Monitoring and Evaluation

15. The internal and external monitoring of RP implementation are agreed to be conducted. Monitoring methodologies and major indicators are specified in the RP. LREC will engage an independent agency as external monitor for semi-annual monitoring & evaluation of resettlement implementation activities and rehabilitation of living standards, livelihoods and incomes until 2 years after the completion of land acquisition and resettlement. External monitoring and evaluation reports will be forwarded directly to both LREC and ADB. A TOR for external monitoring is attached to the RP.