RP552 v 6

Public Disclosure Authorized

Anhui Highway Project III (S322 Taohuatan∼Gantang)

Public Disclosure Authorized Resettlement Action Plan

Public Disclosure Authorized

Public Disclosure Authorized

Anhui Provincial Highway Bureau East China Investigation and Design Institute March 2007

Approved by： Bian Bingqian

Reviewed by: Qiu Qingsong

Responsible Designer: Zhou Jianxin

Checked by： Zhou Jianxin

Prepared by： Li Zongjian Zhu Qiang Zhou Jianxin Participated by： Jiang Zhouping Gao Jun Gu Chunrong Le Jianping Tang Xingping

List of Contents

OBJECTIVES OF THE RAP AND THE DEFINITION OF RESETTLEMENT TERMINOLOGY...... 1 1. PROJECT BACKGROUND...... 3 1.2 PROJECT DESCRIPTION ...... 4 1.3 PROJECT SERVICE SCOPE AND IMPORTANCE ...... 5 1.4 MEASURES FOR REDUCING PROJECT IMPACT ...... 5 1.4.1 Planning and Design Stages ...... 5 1.4.2 Construction Stage ...... 6 1.4.3 Resettlement Implementation Stage...... 7 1.5 PROJECT DESIGN AND APPROVAL ...... 7 1.6 PROGRESS SCHEDULE...... 7 1.7 PREPARATION OF RESETTLEMENT PLAN ...... 7 1.8 PREPARATION OF RESETTLEMENT ACTION PLAN ...... 9 1.9 BASES AND TARGET OF PREPARATION OF RAP...... 9 2. SOCIAL AND ECONOMIC CONDITIONS IN PROJECT AFFECT AREA...... 11 2.1 DIRECTLY AFFECTED AREA AND INDIRECT AFFECTED AREA...... 11 2.2 SOCIAL AND ECONOMIC CONDITIONS IN PROJECT AFFECTED AREA ...... 11 2.2.1 Present Social and Economic Condition of Anhui and Zhejiang Province...... 11 2.2.2 Social and Economic Development Status of Each City, County (district) along the Route ...... 14 2.2.3 Social and Economic Status of Each Town(ship) Affected by Project...... 24 2.3 ROAD EXISTING STATUS AND ANALYSIS OF NECESSITY OF REBUILDING ...... 27 2.3.1 Traffic Facility Status ...... 27 2.3.2 Necessity of Road Rebuilding...... 28 2.3.3 Impacts on Production and Living of Local Residents ...... 33 2.4 ANALYSIS OF PROJECT IMPACTS ...... 34 2.4.1 Analysis of basic condition for surveyed village ...... 35 2.4.2 Analysis of Basic Condition of Family ...... 38 2.4.3 Women Position and Participation in Project...... 46 2.4.4 Poverty population and reason ...... 49 2.4.5 No Minority Problem in Surveying Area ...... 50 2.4.6 Attitude and Expectation of Project Construction...... 50 2.5 MAIN CONCLUSIONS ...... 53 3. INVENTORY FOR IMPACT BY LAND ACQUISITION...... 54 3.1 DETERMINATION OF SCOPE OF LAND ACQUISITION...... 54 3.1.1 Permanent Land Acquisition and Impact Scope ...... 54 3.1.2 Temporary Land Occupation for Construction ...... 54 3.2 IMPACT INVENTORY SURVEY METHOD ...... 55 3.3 MAIN INVENTORY RESULTS...... 55 3.3.1 Permanent Land Acquisition ...... 55 3.3.2 Temporary Land Use...... 57 3.3.3 Project Affected Population...... 57 3.3.4 Minority Population ...... 58

i 3.3.5 Relocation of House and its Attachments ...... 58 3.3.6 Individual Business Households ...... 60 3.3.7 Affected Enterprises ...... 60 3.3.8 Scattered Trees ...... 60 3.3.9 Special Facilities ...... 60 3.3.10 Affected Vulnerable Group...... 61 4. POLICY FRAMEWORKS FOR RESETTLEMENT...... 62 4.1 POLICY BASIS...... 62 4.2 RELATIVE LAWS AND REGULATIONS...... 62 4.2.1 Relative Specifications of "Land Administration Law of the People's Republic of China"...... 62 4.2.2 Relative Rules of "Temporary Bylaw of Farmland Possession Tax of the People's Republic of China"...... 65 4.2.3 Relative Rules of Implementation Method of "Land Administration Law of the People's Republic of China" of Anhui Province ...... 66 4.2.4 Relative Rules of “Regulations of Woodland Protection and Management of Anhui Province”...... 68 4.2.5 Relative Contents of “Implementation Method for Levying and Use Management of Forest Vegetation Recovery Cost in Anhui Province”...... 69 4.2.6 Relative Comments of “Notice on Farmland Occupation Tax by Road Construction Issued by Financial Department of Anhui Province”...... 69 4.2.7 Relative Specifications of Operational Policy--OP 4.12 of World Bank ...... 70 4.3 COMPENSATION STANDARD...... 71 4.3.1 Compensation Standard for Land Acquisition ...... 71 4.3.2 Compensation of Housing and its Attachment...... 76 4.3.3 Compensation for Infrastructure in Host Area ...... 78 4.3.4 Compensation for Relocation and Subsidy for Temporary Transition...... 78 4.3.5 Compensation for Scattered Fruit Trees...... 79 4.3.6 Compensation Standard for Special Facilities...... 79 4.4 ENTITLEMENT MATRIX ...... 79 5. RESETTLEMENT AND REHABILITATION SCHEME...... 83 5.1 TARGET AND TASK...... 83 5.1.1 Target...... 83 5.1.2 Task ...... 83 5.2.1 Resettlement Guideline ...... 84 5.2.2 Principles of Resettlement Plan...... 84 5.3 OVERALL RESETTLEMENT SCHEME...... 85 5.4 ANALYSIS OF CARRYING CAPACITY FOR RESETTLEMENT ...... 85 5.4.1 Nature Condition and Land Resource ...... 85 5.4.2 Features of PAPs and relationship between people and land ...... 86 5.4.3 Production and living infrastructures ...... 87 5.4.4 Economic developing and potential of the affected area ...... 87 5.5 RURAL RESETTLEMENT PLAN ...... 88 5.5.1 Production and living resettlement and rehabilitation scheme...... 88 5.5.2 Budget of Production Rehabilitation...... 98 5.5.3 Using and Guarantee of Resettlement Compensation...... 98

ii 5.5.4 Balance of Occupation and Compensation of Cultivated Land ...... 99 5.5.5 Reconstruction plan of host area ...... 100 5.5.6 Public Service Facilities...... 100 5.5.7 Community Management and Housing Construction...... 101 5.5.8 Organization and Management of Resettlement Implementation...... 101 5.5.9 Training Plan ...... 101 5.6 SCHEME FOR RURAL PRODUCTION AND LIVING FACILITIES ...... 102 5.7 REHABILITATION PLAN FOR SPECIFIC FACILITIES ...... 102 6. COST ESTIMATION ON COMPENSATION FOR LAND ACQUISITION...... 103 6.1 COMPILING BASIS ...... 104 6.2 COMPENSATION PRINCIPLES...... 105 6.3 BUDGET OF COMPENSATION...... 105 6.3.1 Compensation for rural resettlers ...... 105 6.3.2 Compensation for reconstruction of specific facilities...... 110 6.3.3 Other fees ...... 110 6.3.4 Contingency ...... 111 6.3.5 Interest of loan during construction period ...... 111 6.3.6 Relevant tax...... 111 6.4 TOTAL BUDGET OF COMPENSATION...... 112 7. RESETTLEMENT IMPLEMENTATION PLAN ...... 117 7.1 IMPLEMENTATION PROCEDURES ...... 117 7.2 SCHEDULE...... 119 7.3 FUND FLOW AND ALLOCATION SCHEME...... 120 7.3.1 Fund Flow ...... 120 7.3.2 Plan of Payment by Transfer ...... 122 8. INSTITUTIONAL ORGANIZATION...... 123 8.1 ESTABLISHING OF ORGANIZATIONS ...... 123 8.2 STRUCTURE AND RESPONSIBILITY OF ORGANIZATION ...... 123 8.3 STAFFING...... 126 8.4 WORK RELATION ...... 128 8.5 MEASURES FOR BUILDING INSTITUTIONAL CAPACITY...... 130 9. PUBLIC PARTICIPATION AND CONSULTATION ...... 131 9.1 PUBLIC PARTICIPATION ...... 131 9.1.1 Public Participation in Project Preparation ...... 131 9.1.2. Public Participation in RAP Preparation...... 132 9.1.3 Public Participation in RAP Implementation ...... 134 9.2 APPEAL MECHANISM AND CHANNEL...... 135 10. MONITORING AND EVALUATION...... 137 10.1 INTERNAL MONITORING ...... 137 10.1.1 Target and Tasks ...... 137 10.1.2 Institution and Staff...... 137 10.1.3 Monitoring Content...... 137 10.1.4 Monitoring Procedure ...... 138 10.2 EXTERNAL INDEPENDENT MONITORING AND EVA L UAT I ON ...... 138 10.2.1 Target and Task...... 138 10.2.2 Main monitored and evaluated indicators ...... 138

iii 10.2.3 Monitoring and Evaluation Measure...... 139 10.2.4 Working Processes ...... 140 11. PLAN FOR REPORT PREPARATION...... 142 11.1 RESETTLEMENT ACTION PLAN (RAP) REPORT...... 142 11.2. RESETTLEMENT PROGRESS REPORT...... 142 11.3 INDEPENDENT RESETTLEMENT MONITORING AND EVAL UAT I ON REPORT ...... 143 APPENDIXES： ...... 145

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Objectives of the RAP and the Definition of Resettlement Terminology This Resettlement Action Plan (RAP) is prepared according to the Laws and Regulations of PRC, and local area as well as the Guidelines of the World Bank (Operational Directive for Involuntary Resettlement OP/B14). The purpose of this document is to set out an Action plan for the Resettlement and Rehabilitation of the Project Affected Persons (PAPs) to ensure that they will benefit from the project and their standards of living will improve or at least be restored after the project impact. Acquisition of land and other assets for the project will adversely affect the livelihood of persons who live, work or earn their living on the land that will be acquired for the project. PAPs are defined as those persons whose income or livelihoods will be adversely affected by land acquisition for the project. PAPs include the following categories: (1) persons who have a title, right, interest, in structures (houses, enterprises, shelters, or public buildings), land (including residential, agricultural, and grazing land) or any other asset acquired or possessed, in full or in part, permanently or temporarily; (2) persons who use the structures, land or assets described above; or persons whose business, occupation, work, place of residence or habitat adversely affected; or (3) persons whose standard of living is adversely affected as a consequence of land acquisition. A definition of PAPs is given below: Definition of the PAPs: “Affected Persons” means a person who on account of the execution of the project had or would have their: a) standard of living adversely affected; b) right, title or interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed, temporarily or permanently; or c) business, occupation, work or place of residence or habitat adversely affected, and “affected Person” means individually all those who qualify as “Affected persons.” PAPs may be individuals or legal persons such as a company, a public institution. Definition of PAPs is not limited to their legal registration or permission to live or conduct business in the affected location, or their title to property. Thus it includes: a) all those affected by the project regardless of their legal rights or absence thereof to the assets being taken; and b) persons without residential permit to live in a certain area. Therefore all such persons who are affected will need to considered and recorded as PAPs, regardless of their legal connection to assets land or location. If there are more than one person, family or household using or holding a title to the same land or property that is acquired, they will be compensated and rehabilitated according

1 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） to the loss they suffer, their rights, and the impact on their living standards. The definition of PAPs is linked directly to the adverse effect of the project, regardless of legal rights title or interest. All PAPs are entitled to the improvement or at least restoration of their standards of living, and compensation for the material losses they suffer. Compensation for assets will cover replacement cost. No deductions or discounts will be applied to the compensation amount for depreciation or other reasons. All PAPs deriving an economic benefit from the affected land and property are entitled to receive rehabilitation benefits in addition to the compensation for their assets lost. Those PAPs without title, authorization or legal permission to reside, conduct business, cultivate land or construct structures are eligible for rehabilitation of their livelihoods and compensation for their assets on an equal footing with those with formal legal title, authorization or permissions to the assets. The term RESETTLEMENT includes: (1) the relocation of living quarters; (2) finding acceptable new employment for those whose jobs are affected; (3) restoration (or compensation) of affected productive resources such as land, workplaces, trees and infrastructure; (4) restoration of other adverse effect on PAPs’ living standards (quality of life) through land acquisition (such as the adverse effects of pollution); (5) restoration of or compensation for affected private and public enterprises; (6) restoration of adversely affected on cultural or common property. Rehabilitation means: the restoration of the PAPs’ resource capacity to continue with productive activities or lifestyles at a level higher or at least equal to that before the project. The objective of this RAP is to provide a plan for the resettlement and rehabilitation of the PAPs so that their losses will be compensated and their standards of living will be improved or at least restored to the pre-project levels. To achieve these objectives the plan provides for rehabilitation measures so that the income earning potential of individuals are restored to sustain their livelihoods. Affected productive resources of businesses (including shops, enterprises) and public property. Infrastructure and cultural property will also be improved or at least restored to their pre-project levels.

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1. Project Background Anhui Province is located in the southeast of China, serving as transtional area from the coast area to inland. In recent years, the economy in Anhui province maintains the good tendency in continued, fast and healthy development, the economy steps into the rising stage of a new round development, but now it still is one of economy not developed provinces in China. In the year of 2005, GNP in Anhui is 537.6 billion Yuan, which is only 32% and 28% of that in Jiangsu and Zhejiang respectively. Especially the traffic is inaccessible in Wannan (south of Anhui) mountain area, the investment environment is poor, various resources can not be developed and used efficiently, the economy lags hehind, it is difficult for people in the mountain area to go to school and hospital, the production and living level falls behind than that in the traffic developed area. In order to quicken the provincial economy, alter the lag condition in Wanna area and promte the economic development in Wannan area, in June, 2006, Anhui Provincial Party committee and government dedided to carry out the stratagem of taking "Two Mountains and a Lake (Huangshan and Jiuhua Mountains and Taiping Lake)" as a head to bright the provincial travel development so as to make the travel trade be an increasing point and main trade in a new round province economy development and realize the goal of being a strong traveling province from a province rich in traveling, and make Huangshan and Jiuhua mountain and Taiping lake become an international famous scenic spot so as to bring economic and social development by travalling. Within the scope of project, it has rich travel resources of Huangshan mountain and Taiping lake (which is the core of scenic spot "Two Mountains and a Lake"), famous Taohuatan (which is also a major scenic spot in travel development and is well known by “Poem for Wang Lun” from Tang dynasty poet, Li Bai), the national key cultura protective relic -- memorial hall of former headquarters of the New Fourth Army, Chinese first ancestral temple, former residence of Wang Jiaxiang, etc.. Because of the restriction in traffic, the scenic spots can not be in series so that the travel scale is restricted, the travel development in local area lags behind, the scale economic benifit can not be formed, and overall development of economy and society in project area is seriously restricted. S322, starting from Shuiyang town near the boundary between Jiangsu and Anhui province in the north and ending at Gantang town of Huangshan area via Xuancheng city and Jingxian county from north to south, is the important highway in Wannan mountain area, but has a “Beheaded highway”, only one in the national and provincial roads within Anhui province boundary. The highway goes from the plain along the south bank of Changjiang River to Wannan mountain area, and covers Xuanchen ~Jingxian~Taohuatan road of Grade-II and Taohuatan~Gantang section (which is not linked by obstruction of Taiping Lake and Longmen mountain range). Now, the transportation from Taohuatan to Huangshan area is by S103 road via rural road from Taohuatan to Shaji because of that the road from Taohuatan to Gantang is of “Beheaded highway”, with low road grade, serious broken road surface, bad road condition, especially poorest condition for the road section at Longmen mountain range (Jiangjia~Majia section, about 7km) with over 12 turnings. According to the survey, the mixing traffic flow in 2004 is 1077 vehicles/day (mini bus), and by the traffic forecast, the annual traffic flow in 2015 will be 2738 vehicles/day (mini bus), and in 2024 will be 5191 vehicles/day (mini bus). By forecast and analysis of traffic condition, the existing highway cannot meet the demand of social and economic development

3 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） and the future traffic transportation in the project area. Therefore, in order to carry out the travel development strategy by "Two Mountains and a Lake" made by Provincial Party Committee and Government, accelerate the travel resource development in Wannan area, develop travel economy vigorously, make the scenic spot of "Two Mountains and a Lake" as core to form a series scenic spots at peripheries, realize the goal to drive the overall economic and social development in the project area by traveling, further perfect the regional road network, improve the traffic conditions and meet the increasing demand in traffic, it is very necessary and urgent to have the project construction. 1.2 Project Description The project is a section in S322, and is mainly of reconstruction road. After reconstruction, the road will be an important provincial road to connect with Huangshan mountain area, Jingxian county and Xuancheng city, at the same time, it will act as an important rural highway on a certain level, and will be the base for development of agricultural and rural economy along the line. The project starts from Taohuatan village in Jingxian County and connects with S322 Jingxian ∼Taohuatan section. It, from the north to south, goes over Yanzi mountain range and Taiping lake nearby Pinglong mountain, and finally connects with S103 near Taizimiao in the east of Gantang town after passing through Longmen town of Huangshan area, and it will connect with Tongling∼ Tangkou expressway by Gantang interchange. According to its position in highway network and estimated traffic quantity, the reconstruction section is designed with bitumen concrete road surface according to standards of the design speed 40km/h, roadbed width 8.5m, the road surface width 7.0mm for Grade-II highway, totaling length 30.28km. See Table 1-2 Major Technical Index for details. Major Technical Index Table 1-1 Description Unit Quantity Remarks

Road class Grade-II Starting point~K14+500 and K28+120~terminal （ K30+280 ） is about Length km 30.28 16.66km, reconstructed according to Grade-II, and K14+500~K28+120 section is Design speed km/h 40 about 13.62km, which is the existing line, only road surface repaired. Vehicle loading class Grade-II

Lane width m 2x 3.5

Roadbed width m 8.5

Large bridge m/ea. 1038/5

Bridge Middle bridge m/ ea. 131/2 culvert Small bridge m/ ea. 43/2

Culvert ea. 55 Including rebuilding 2 Separate ea. / Road crossing crossing Grade ea. 3 crossing

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1.3 Project Service Scope and Importance S322, an important highway in Wananan mountain area, will directly connect with Xuancheng city, Jingxian county and Huangshan area inside, and also link with the China developed area of Changjian Delta via G205, S103, Wu(hu)- Xuan(cheng)- Hang(zhou) expressway and Tongling~ Tangkou expressway (under construction) so that the space-time from it to Hang-Jia-Hu area (most developed area in Zhejiang) and Su-Xi-Chang-Ning (the most developed economic area in Jiangsu province) will be shortened greatly. The project construction will end the history of the “Beheaded road”, improve the road network conditions in Wannan area and further perfect the regional network. The project construction will be helpful to accelerate the development of Wannan travel resource, promote the travel trade to develop into a higher level, implement the strategy of Huangshan and Jiuhua mountains and Taiping Lake as a head in the travel trade development, drive the development of related industry so as to realize goal of driving the overall economic and social development by tour trade. After the project constructed, it will be convenience for the connection of residents in mountain and reservoir area (especial for those in Taohuatan town, Longmen, Jingxian County and Huangshan area), accelerate the flow of people as well as circulation of material and information, improve investment environment, play a role of urban economy to bring rural economic development fully, promote the materials exchange of town and countryside , accelerate the adjustment step in agricultural structure, open the income channel for farmers, increases income of farmers, and make poverty residents along the ling become rich quickly. 1.4 Measures for Reducing Project Impact 1.4.1 Planning and Design Stages During project planning and design stages, the design organization and the project owner have adopted a series of effective measures to reduce the impact of the project on the local social and economic status. A. In the planning stage, the resettlement schemes were optimized and selected with due consideration in social and economic impact of the project such as distribution of resident spot, tourism, cultural relic, agricultural and forestry land, and such impacts were taken as the key factors in selective comparison of the schemes. B. Efforts were made to select the route with the prerequisite that to save land, reduce environment impact, use existing road, avoid demolishing house and relocation of people, not to occupy good field and forest land as far as possible. . C. Pay attention to environment protection and local topography and landform, and select route to be away from sensitive spot of water source, school, hospital, historic and cultural relic, and scenery zone as far as possible. At the same time, reduce to dig earth at nearby place as far as possible during the construction period to avoid water and soil loss, and take proper protection measures for protection when it is inevitable. D. The construction design was optimized to shorten the construction period and the time of house removal and resettlement were rationally arranged with due consideration of construction progress so as to reduce the property loss of the resettlers to a minimum. For example, the house removal and rebuilding are generally arranged in the slack seasons and the

5 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） land will be occupied after the crops harvested. The construction of bridge and culvert shall be completed before the spring ploughing and be favorable for irrigation and flood control. E. The recommended line and alternative line shall be compared with consideration of protecting environment of sight spot (area) by keeping the project away from the sight spot (area) and also arrangement of the main sight spot along the line and purpose of "Rapid Traveling", so that it will effort the service for the development of traveling economy along line as far as possible. F. The design has considered fully the inconvenience on production and living of local residents by the construction of road. For instance: Set necessary traffic safety facility to guarantee the safety of pedestrian and driver on road crossing or dangerous sections; In addition, corresponding engineering measures are taken to resume water channel system and its function to reduce inconvenience to the local people by the road construction. 1.4.2 Construction Stage A. Strengthening public participation mechanism Before project construction, the public notice will be issued in the project affected areas and the host areas clearly to inform the construction starting time, planned project schedules, the compensation policies of land requisition and house removal as well as resettlement so as to receive the public supervision. In the construction period, the local construction materials will be first considered, and the local transportation means and local labors will be first adopted so far as they can meet the technical requirements. The purpose is to make the PAPs benefit from the project. B. Measures to reduce noise To alleviate the noise from construction to residents, avoid the construction as far as possible in rest hours, and often give inspection for construction machinery; the concrete mixing plant shall be far from the population dense area to alleviate the influence for resident life. C. Measures to reduce floating dusts In order to reduce the impact on the environment by the construction, the concrete mixing plant and material storage yard shall be far away from the population dense area and environment sensitive spot; the construction unit shall carry out plan for shipping route for earth and rock transportation, no overloading, with measures to ensure no leakage and sprinkle along the road, maintain a clean environment in the construction site and reduce the construction impact to the surroundings; and the construction roads at the inhabitant concentrated places will be sprayed with water in case of continuous windy fine days to prevent floating dust and try best to reduce dust pollutive source. D. Strengthening epidemic disease prevention and control During construction, large number of population will move into the project area to provide various services. To maintain the public security and the health of the people in the construction area, put an end to fight in the construction area and prevent propagation and contagion of infectious disease, the project unit will request the local policy station and sanitation section to have regular patrol on the site, request the construction unit to clean up

6 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） the living wastes at the construction sites according to the requirement of the local environmental sanitation authorities so as to guarantee the neat of the construction site and avoid the breed and spreading of epidemic disease. 1.4.3 Resettlement Implementation Stage In case that the land acquisition and house removal are unavoidable, the following measures should be adopted to reduce the project impact to the local situation. A. Basic data collection should be strengthened and in-depth analysis on local social and economic status and development trends. The implementation plan that is practical to the local situation should be formulated so as to ensure that the living standard of the PAPs not be lowered by the construction of the project. B. Measures will be adopted to minimize the project impact. For example, in planning the resettlement, efforts will be made to combine the earth excavation of hillock to create farmland, link with water system, dig water pond, solve irrigation problem of surplus land and improve land use condition; C. The internal and external monitoring should be strengthened and the efficient information feedback system and channels should be established to shorten the information processing cycle to a possible extent and to ensure timely solving the problems rising in the implementation of the resettlement. 1.5 Project Design and Approval Anhui highway project-III (S322 Taohuatan ～ Gantang section) is designed by Anhui Provincial Road Investigation and Design Institute. During the feasibility study stage, the design unit made several routes for comparison, and analyzed the technical and economic index of each alternative for impact on local social and economy, land acquisition and resettlement, environment assessment, geological structure, hydrology and meteorology, topography and landforms, construction condition, etc. for the recommended route. The construction unit will arrange soon the review of preliminary design and construction drawing design. 1.6 Progress Schedule According to actual condition of the project and combining with opinion of local government, it is planed to complete all preparations and start the construction before the end of 2007; put into operation by the end of 2009, the construction period is 2.5 years. According to the overall plan progress of construction, now the preparation work for resettlement has been completed and the “Resettlement acting plan” is under compilation based on the requirement of WB. See Chapter 7 for detailed resettlement implementation plan. 1.7 Preparation of Resettlement Plan A. Survey of Project Impact Based on the land acquisition drawing made by Anhui Provincial Road Investigation and Design Institute, the survey team formed by relative technical people from Anhui Provincial Road Investigation and Design Institute made survey on inventory index of house and its attachment, land, special item and scattered trees, etc. for more than 20 days during

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middle-ten-day of July and beginning of Aug. 2006. The survey teams were actively supported and assisted by the local governments, village committees and the PAPs. According to the type of the affected objectives, the project impact survey was categorized into land requisition, house and appendage relocation, scattered fruit tree felling, individual business households, enterprise, special items relocation and PAPs to be Relocation houses in Dongkeng resettled due to house relocation and land requisition. All the Village survey outputs were confirmed by the PAPs or the local people’s governments at different levels. B. Social and Economic Survey For analysis of the project impact and formulation of feasible RAP, each county and district resettlement office organized, with the uniform arrangement by Anhui Road Administration, the related departments to have the detail social and economic survey in the towns (street), villages, village groups and resettlers in the project affected area and the host areas. The survey is performed by collecting the existing statistic data and sample surveying on the site, and can be divided in two aspects. Relocation Houses in Taohua village (1) Basic conditions, social and economic status and development plan: to collect the relevant documents and yearly statistic reports about GNP, national income, output value of industry and agriculture, financial revenue, income level of local people, information of agricultural products and sideline products and their price, agricultural cultivation structures, area of plantation, output per mu and plowland holding condition from the planning, statistics and price management departments of the local governments. All the information collected was analyzed and sorted into various economic indexes, which can macroscopically reflect the local economic and social conditions. (2) Existing living and production conditions of the inhabitants in the area: The living and production indexes of the inhabitants in the land acquisition and resettlement areas (including object for land acquisition and house relocation) are established and sample survey of the affected objects are conducted. The data collection and sample survey were performed simultaneously with the survey of indexes in kind. According to the data actually surveyed, the actual living and production conditions of the local inhabitants and the existing social and economic conditions were analyzed. C. Resettlement Plan Work The resettlement for the project is to be carried out on the developable basic, that is, the host area is provided with basic materials for people’s living and at the same time has the potential for long-term development. The resettlement will be incorporated into the regional economic development so that the resettlers are able to gradually become well off and their life will be equal to or better than before resettlement. The resettlement planning is under the leadership of local county(district) government. The detail survey was first made into the residual land sources on the village group base and the remaining resettlement capacity was

8 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） determined. Then, after collecting the villagers’ opinions and based on the actual conditions of each town(street) and village, the resettlement method and scheme were drafted and discussed by the villagers commissions. Based on the method and scheme, each village worked out their own “Preliminary Resettlement and Land Requisition Plan for Anhui highway project-III (S322 Taohuatan ～ Gantang section)”. Generally, the land-based way is used, and there is no big influence on local economy by the road construction, land adjustment made within same village or same team, or by creating new land or adjusting agricultural structure, let the resettlers living and production condition be restored or better than before the resettlement. Meanwhile, in order to strengthen the leadership and coordination of the resettlement work, each county(district) established the Project Resettlement Leading Groups successively. 1.8 Preparation of Resettlement Action Plan The preparatory work for resettlement action planning was organized by the project construction unit- Anhui Road Administration, and participated by the concerned design institutes, resettlement consulting organization and local governments at different levels. East China Investigation and Design Institute provided the technical guidance, the design institute set the boundaries of resettlement areas and the local government was responsible for formulation of the resettlement schemes for the territory under their jurisdiction. Since Aug. 2006, the resettlement organizations at different levels were successively established, the project affected areas were defined, the work outlines of RAP was prepared, and the work of survey of indexes in kinds, social and economic survey, policy formulation, resettlement schemes and compensation estimation was completed. Now, the “Resettlement Action Plan (RAP) of Anhui highway project-III (S322 Taohuatan ～ Gantang )” and the preparation of resettlement monitoring and assessment have been completed. 1.9 Bases and Target of Preparation of RAP A Policy Frame ⑴ Land Law of the People’s Republic of China ⑵ Implementation Measures of Land Law of the People’s Republic of China of Anhui Province ⑶ Interim Regulation of the People’s Republic of China on Taxation on Land Occupation ⑷Regulations on Forestland Management of Anhui Province ⑸ Non-Voluntary Resettlement, Operational Policy OP 4.12 of the World Bank B. Target of Policy ⑴ Adopt engineering, technical and economic measures to avoid or minimize the land requisition and house relocation to a possible extent. When the land requisition and house relocation are unavoidable, efforts should be made to adopt effective measures to reduce the impact on the local living and production conditions. ⑵ In project preparation stage, the social and economic survey should be conducted and corresponding resettlement plan prepared.

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⑶ The resettlement should be based on the surveyed indexes in kinds and the compensation criteria, and should aim at upgrading or at least restoring the original living and production level of the resettlers. ⑷ Initiate the developable resettlement. The rural resettlement should be on the basis of land and creates job opportunities in the local secondary and tertiary industries. ⑸ Encourage the resettlers and the inhabitants in host areas to participate in planning the resettlement. ⑹ The PAPs should be resettled in their original communities, as a first priority. ⑺ The resettlers and inhabitants originally living in the host areas should be benefited from the project.

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2. Social and Economic Conditions in Project Affect Area 2.1 Directly Affected Area and Indirect Affected Area According to newly compiled "Anhui Provincial Urban System Plan", Anhui province is divided into four economic areas as that: Wanzhong economic area includes Hefei city and its periphery area; Wanjiang economic area includes cities of Ma-Wu-Tong, etc. along a river; Wannan travel economic area includes Huangshan city and its periphery scenic spots; and Wanbei economic area includes two Huai(Huainan and Huaibei), 6 cities of Fuyang, etc.. The project effect involves Huangshan city and Xuancheng city mainly, which are the important cities in Wannan travel economic area. By closely neighboring with Changjiang Delta area (the developed economy area in China), bordering with developed Hang-Jia-Hu area in Zhejiang province in the east, linking with the most developed economic Su-Xie-Chang-Ning area in Jiangsu province in the north, it is a hinterland in economic radiation scope of "Changjiang Delta area". Therefore, based on the geography location and function of the project, the direct affected area is Huangshan mountain area and Jingxian County, and other places of Huangshan and Xuancheng city as well as indirect affected areas of Zhejiang and Jiangsu province. 2.2 Social and Economic Conditions in Project Affected Area 2.2.1 Present Social and Economic Condition of Anhui and Zhejiang Province A Anhui Province ① Present natural condition and features Anhui province, an inland province near river and sea, is located at innerland of the East China, at middle and downstream of Changjiang River and Huaihe river, linking with Jiangsu and Zhejiang province at the east, with Hubei and Henan province at the west, with Jiangxi at the south and with Shangdong at the north. It is about 450km wide from the east to the west, about 570km long from the south to the north, with total area of 139400km2，accounting for 1.45% of total area of the country, placed on the 3rd position of East China and 22nd for whole country. Now, Anhui province governs 17 prefecture level cities, 5 county level cities, 44 districts, 56 counties; by the end of 2005, total population is 65.1551 million, the agricultural population is 51.5481, accounting for 79.1%, the natural population increasing is 6.26.2‰, the population density is 467 person/km2，which is more than 3 times of nation-wide average population density. Anhui province has superiority in resources, rich in the nature resources of land, biology, water, minerals, etc., and has the cultivated land 4.09 million hectare, water surface 1.05 million hectare, in which the breeding area is 480000 hectare. It has the biological resource of 10917 kinds, in which the national protective wooden plants are 30 kinds and treasured wild animal 54 kinds, national protective animal of Grade-I and Grade-II of 18 and 368 kinds respectively. Among them the most valuable ones are Chinese alligator and Chinese River Dolphin. The province has the water resource holding amount of 68 billion m3, which is the 20th position in China. Anhui province has rich minerals resource and developable potential is huge. There has discovered useful minerals over 130 types and the reserved capacity of 67

11 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） kinds, in which 49 kinds are developed and used, and 38 kinds have the reserved capacity in the 10th rank in China. According to price calculation in 1990, the total potential value of the mineral reserves is up to 1920 billion Yuan, at the 10th rank in China. The potential value of the mineral reserves and potential value for more than 11 kinds such as coal, iron, copper, sulphur, alum, etc. are in the top rank in the east China and even in China. The natural landscape in Anhui province is magnificent, with rich humanity landscape and the natural landscape joining with humanity landscape. The major tourism scenes distribute and centralize relatively in south, southwest and east of province, with more than 260 province level tourism spots. Huangshan, Jiuhuashan, Tianzhushan, Qiyunshan and Langyashan mountains are the famous national level scenic spot; 4 spots of Guniujiang,Yaoluoping, etc. are national level natural protection zone; and spots of Dalongshan, Huangzhangyu, etc. are national level forest parks, 3 famous historical cultural places of Bozhou, Shouxian, Shexian are at national level, and 9 national protective cultura relics are Fengyang Zhongducheng, Ming emperor tomb, site of Hexiang ape-man, Xueguo memorial archway in Shexian county, Bozhou theater building. In 1998, Hefei city, Huangshan city and Bozhou city were awarded as nation-wide excellent travel city, Huangshan mountain is awarded as the international protective and management cultural landscapes by United Nations Educational, Scientific and Cultural Organization in 1999, and Jiuhua mountain is named as the civilized scenic spot at national level by Ministry of Construction in China. In recent years, the economy of Anhui province maintains fast, continued, good and healthy development at rising stage in new round of economic development. The industry becomes leading trade for economic increasing of whole province, the industrial classes of whole province are reasonable, and the pillar industries of machinery, home appliance, chemical, energy and raw material, etc. are formed. It is reforming actively on the tradition trades of tobacco and vine, agricultural byproduct processing etc., and fostering greatly leading business of electron, information, new material and biological project etc.; In which the production ability of a lot of products is at front row and the economic foundation is thick and solid. ② Social and economic development status By the end of 2005, the farmland area of whole province is 61.3868 million mu, in which paddy field is 27.3225 million mu, dry land 34.0643 million mu, average land per capita for agricultural population 1.19mu, total annual grain output 26.0531 million ton, average grain per capita 400 kg, average grain output per mu 424kg. The national economy is fast and stably increased, the 3rd industry structure is reasonable day by day. The total production value in 2005 is 537.584 billion Yuan, 11.80% increased than last year. In which, the 1st industry is accounting for 17.8%, 1.0% increased; the 2nd industry accounting for 41.7%, 18.8% increased; and the 3rd industry accounting for 40.5%, 9.9% increased. By the computation of permanent residents, the GDP per capita is 8251 Yuan. The agriculture develops steadily, and industrial production develops fast, the total annual industry and agriculture output value is 623.342 billion Yuan, in which the industry is 73.3% and agriculture 26.7%. By the computation of permanent residents, the gross industry and agricultural output per capita is 9567 Yuan. In 2005, the average income per capita of urban residents is 8471 Yuan, 12.8% increased than last year, the pure income per capita of rural

12 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） residents is 2641 Yuan, 5.7% increased than last year. The development of culture, education and sanitary cause is accelerated. By the end of 2005, there were 93 artistic performance organizations,14 masses artistic houses, 100 cultural houses, 85 public libraries, 42 museums, 3 million wired television users, broadcasting comprehensive population coverage rate 95.6%, and television comprehensive population coverage rate 95%. Totally, there are 19 training units of graduate-students, 81 ordinary colleges, 760 ordinary senior high schools, 3188 middle schools, 20142 primary schools. The entrance rate at middle school stage is 97.78%, the entrance rate at primary school stage is 99.54%, and it eliminates illiteracy 86000 persons. There are totally 9100 sanitary organizations (including clinics, sanitary stations and individual doctors), 117000 sickbeds in hospitals and sanitary stations, 165000 professional sanitary technical people; 23000 rural and village clinics, 45000 rural doctors and health workers. 95% villages have rural sanitary spots, and 16 counties(city) have developed pilot test of new rural cooperative medical service and participated by 6.14 million peasants. B. Zhejiang Province ① Present natural condition and features Zhejiang province, at south of Changjiang Delta, locates at the southeast coast, facing East China Sea in the east, neighboring with Fujian province in the south, Anhui and Jiangxi in the west, Shanghai and Jiangsu in the north. The landform shape in the province is mainly of hills and mountainous region. It has the land area of 101800 km2, the resident population 48.98 million by the end of 2005, and population density of 481 persons / km2. Zhejiang is the comprehensive agricultural district with high output in China, Hang-Jia-Hu plain and Ning-Shao plain in the northeast are the main grain producing area, and also the largest nation-wide silk producing area. The hills in Zhejiang are the main areas to produce bamboo and tea, and the islands in the east coast are the important nation-wide bases for aquatic product. Zhejiang province is rich in travel resource, and possess important landscapes over 800, the water area landscapes over 200, the biological landscape over 100, and humanity landscape over 100. It is well known by the name of "A Land of Fish and Rick, Home of Silk and Tea, State with Rich Cultural Relics, and Area fully with Famous Travel Scenic Spots". It has well known scenic spots such as Hangzhou West Lake with landscape as a drawing, Yantang Mountains with ridges and peaks in south of Zhejiang, Potuoshan with name of sea and Buddha country, Qianjiang tide with great momentum, etc.. By natural views intersecting humanity landscape and obvious characteristics, it is well known at home and aboard, and attracts numerous visitors at home and aboard to have a look at sight-seeing every year. ② Social and economic development status Since open and reforming policy, the provincial economy develops quickly, the major economic index is in the lead rank of nation-wide, and it becomes one of provinces with rapid economic increasing speed in China. In 2005, it realized the GNP 1336.5 billion Yuan, in 4th rank in China. According to price calculation, it increases 12.4% than that in last year, increasing proportion for three industries is 6.5: 53.5: 40 respectively, the total production value per capita is up to 27287 Yuan, 10.8% increasing than that in last year. Now, the regional economy of the province involves fields of manufacturing, processing,

13 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） construction, transportation, breeding, weaving, industry trade and service, with over 100 industrial professions and 30 agricultural byproduct-processing industries. The province possess over 500 economic groups with total industrial output value over a hundred million, in which 52 groups possess over 30% of markets in China. According to statistics, the total industrial output value with special regional economic characteristics in Zhejiang province is accounting for 49% of total. C. Comparison of social and economic development of two provinces in 2005 From the view of economic development at recent ten years, the development speed of Anhui province and Zhejiang province is steady, slightly higher than nation-wide average level, in which, the development speed of Zhejiang province is rapid and the GDP is kept up continuously by two figures. The economic development of Anhui province is higher than nation-wide average level by 1 ～ 3 percent, but the agricultural foundation is weak because the industrial structure needs improvement urgently, the gap between urban and countryside do not change at all, its economic development has certain gap with Zhejiang province. See Table 2-1 for the comparison of economic development of two provinces. Comparison of social and economic indexes of two provinces in 2005 Table 2-1 Population GDP Per capita Ratio of 3 industrial Region Proportion Proportion in GDP Quantity Quantity sectors 4 in China 8 China （ ） （10 persons） （10 Yuan） Yuan （%） （%） Anhui 6515.5 5.0 5375.8 3.0 8251 17.9：41.6：40.5 Zhejiang 4898 3.7 13365 7.3 27287 6.5：53.5：40 China 130756 100 182321 100 13944 12.5：47.3：40.2

2.2.2 Social and Economic Development Status of Each City, County (district) along the Route A. Xuancheng ① Natural resource status and features Xuancheng, 280 km away from Shanghai, locates at the edge of Changjiang Delta area (the developed economy area in China), bordering with developed area of Hang-Jia-Hu in Zhejiang province in the east and linking with the most developed economic area of Su-Xie-Chang-Ning in Jiangsu province in the north. Xuancheng, a well-known historical cultural city and also indrustry trade city with outstanding scenery characteristics, is a southeast gateway city in Anhui province. Now, it governs one city, one district and five counties of Xuanzhou, Ningguo, Langxi, Guangde, Jingxian, Jixi and Jingde, with the land area 12340km2. Xuancheng is rich in natural resources, specialy travel resource and forestry resource. The topographical features in Xuancheng is that: high in the south and low in the north, landforms is complex and various. It has the major forest products of chestnut, Chinese date, hickory, etc., with the output at the front rank in the province.

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Xuancheng has minerals resources of coal, limestone, marble, argil and graphite mainly, which are worth to be used and developed. Especial that storage of limestone, which is used to product cement, is larger, up to 16 billion ton, with a large-scale of bed and good quality, and the raw material for well known "Hailuo Brand" cement is taken from the limestone in Hailuo mountain of Ningguo. Xuancheng is rich in travel resource, and has 4 areas at the state and province protective level, 2 forest parks at state level, 46 key cultura relic protective units at state and provinice level, and 4 well known scenic spots at provinice level. The major travel resources are the natural protective area for Chinese alligator, and landscapes and the wellknown historic sites such as Taiji Cavern (one of four soles in the world), beautiful Taohuatan, site of Former Headquarters of the New Fourth Army, Hushi Ancestral Hall, Residences of Former Wang Jiaxiang and Hushe. Xuancheng is rich in cultural base and has a great numbers of scholars such as Fan Hua, Xie Tiao, Shen Kuo, Wen Tianxiang, etc. lived here one after another, and Li Bai, Chao Yu, Bai Juyi, Du Mu, etc. came here for living. With numerous historical remains and graceful natural spots, the city is wellkown by the reputation of " Xuancheng, a Place Fully with Poets from Ancient ". ② Social and economic development status The agricultural production is mainly of grain, cotton and oil. In recent years, the planting proportion in agriculture drops year by year, but the aquatic breeding and animal husbandry develops gradually. In industry, electromechanical, textiles and light industry, and construction profession, etc. is developed. The development in seven fields such as metal and mineral industry, rubber production, agricultural sideline production and foodstuffs processing, timber processing, wooden-bamboo- bane-palm-grass processing, and the electrical mechanical and apparatus manufacturing are rapidly. By the end of 2005, the total population is 2735600, in which agricultural population is 2266200, accounting for 82.8%, population density 222person/km2, and population natural increase rate 4.73‰. The real labor force in village is 1399300, accounting for 51.1% of total. By the end of 2005, the real farmland area is 2264100mu, in which paddy field is 2024500mu and dry land 239600mu; annual total grain output is 1181200 ton, average land per capita for agricultural population 1mu, the grain per capita 432 kg, and grain output per mu 522 kg. The total production value in 2005 is 25.153 billion Yuan, the proportion of 3 industry sectors is 21.9：37.4：40.7 respectively. The GDP per capita is 9195 Yuan. The total annual industry and agriculture output value is 28.852 billion Yuan, in which the industry is 69.7%, agriculture 30.3%, the gross industry and agricultural product per capita is 10547Yuan. In 2005, the pure income per capita of rural residents is 3157 Yuan. In recent years, Xuancheng, by full use of position advantage by neighboring with Su-Zhe-Hu developed area and according to overall development thought of conforming to the world economy and making its economy into Su-Zhe-Hu economic circle, adopts a series of the effective measures in the soft and hard environmental construction for the economic development, changing of government function and adjusting the economic structure so as to carry out the opening policies further. In 2005, the export value reached to 171.85 million U.S. dollar, 31.3% increased, and the actual foreign capital used reached to 33.98 million U.S. dollar, 45.1% increased.

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③Social and economic development plan The expected goal for overall comfortable society in Xuancheng is that: the total value of national product increases 9.5% in 2003 ∼ 2010, GDP reaches to 1600 U.S. dollar in 2010, average per capita being at state level; and the total value of national product will increase 9.0% in 2011∼2018, the value in 2018 shall be one time more than that in 2010, and average per capita shall exceed 3000 U.S. dollar so as to realize the overall comfortable social goal. During “ Tenth Five-Year Plan", the goal of economic social development is that: to speed up the new industrialization and accelerate the industrial structural optimization and upgrading; carry out the overall development in town and countryside forward and construct a new social rural; promote the central city construction and town construction further and the regional economic development in coordination; step into Su-Zhe-Hu economic circle in all-around and open to outside further; and construct a society with economized resource and friendly environment and raise people's living level continuously. ④ Travel development plan Based on factors such as its position, resources, market potential, traffic condition, development direction, etc., Xuancheng is divided into 5 large travel areas: (1) Xuanzhou ecological and muti-function travel area with characteristic of Chinese alligator: it is mainly consisted of the ecological and popular science travel point of Chinese alligator, and scenic spots of Jingting mountain and Shuidong old street as well as Nanyi Lake. (2) Jingde - Jixi with rural characteristics and Anhui culture: it has scenic spots of Longchuan, Giant Residence in Jiangcun, villages with ancient characteristics, Qingliang Peak, and Dazhangshan Gorge. (3) Guangde –Langxi cavity, stone and bamboo sea area: It has scenic spots of Taiji cavity at Grade-4, Bamboo Theme Park and Shifo Mountain, named as a travel area consisted of “A cavity, a Park and a Mountain". (4) Ningguo ecological and green agricultural area: it is consisted of Qinglong lake and Banqiao natural protective zone at the province level. (5) The cultural travel area with site of former headquarters of the New Fourth Army and old revolution area: it is consisted of scenic spots such as the site of Former Headquarters of the New Fourth Army in Yunling, the Former Main Battlefield in Maolin, Native Place of Rice Paper, Taohuatan – Taiping Lake, and Shuixi Double Tower. With three “sector-type” travel lines ( Xuanzhou - Jingxian - Jixi red cultural travel line; Xuanzhou - Ningguo - Jixi ecological travel line; and Xuanzhou - Jingde - Jixi travel line of native place for leader and characteristic village) as the core, to form a series travel line consisted of “Two Mountains and a Lake”, West Lake, Qiandaohu and periphery regional travel resources. By developing the travel line for foreigners, to form a travel network system with different level. B Huangshan city ① Natural resource status and features Huangshan city, at connecting area of Wan-Zhe-Gan provinces, locates in the south of Anhui province, connecting with Hu-Ning-Hang in the east, E-Gan in the west, and Xuancheng and Chizhou city in the north. It has the gross area of 9807 km2. Huangshan city is an international travel and central city in Wannan area, and has famous nature and cultural legacies. Huangshan city is as the headstream of Anhui business in China, with rich Hui

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(Anhui) cultures consisted of Hui business, Hui drama, Hui dish, Hui vulture, Xin’anjiang theory, Xin’anjing medical, Xinanjiang drawing style and Xin’anjing architecture as well as Hui badge and Hui inkstone with shrewd technology and long traditional arts and crafts. Huangshan has characteristics of rich in travel resources and unique landscape, not only has the only one nature landscape in the world and also has the humanity landscape of Chinese ancient culture with a great number. Haungshan is awarded as one of well-known scenic spots in China in 1985, and listed into world cultural and natural legacy directory by Nations Educational, Scientific and Cultural Organization in 1990. Huangshan has a lot of landscapes with different style, e.g. beautiful Taiping Lake, “Landscape Corridor” of Xin’anjiang, two natural protective areas of Guniujiang with original style at the state protective level and Qingliang Peak at province protective level, and Qiyun mountain (one of four Taoism Holy Lands) as well as Xianxian Ancient Folk House (named as ancient eastern artistic treasure)" and well-known scenic spot of Taiping Lake (named as emerald in south and a sweetheart of Huangshan). Huangshan, rich in the forestry resource, is the important place for producing East China timbers, and is also famous district to produce tea, mulberry, fruit and edible bacterium, and Chinese traditional medicine. The tea planting area and output is at the first rank in China. Among them, teas of “Qihongli”, “Huangshan Maofeng”, “Taiping Houguang” and “Dinggu Dafang” are listed in ten best teas in China and the tea is one of important economic products. It also has special agricultural products of mushroom, dried bamboo shoots, ferny vegetable, Huizhou chrysanthemum, Shexian golden orange, Yixian Chinese torreya, etc.. ② Social and economic development status Huangshan has the planting and forestry in agriculture mainly, the planting covers the economic crops of paddy, wheat, corn, oil plants, tea, mulberry, fruit, etc.. Of which tea takes an important position in agricultural economy and its area and output is in the first rank in China. Travel trade becomes the leading trade in Huangshan national economy, the employees directly for travel trade is near ten thousands, travelers in 2005 reached to 10.013 million person-time, yearly increasing of 12.5%, 2.1 percent high than increasing of total value in production. The total income from travel reached to 6.15 billion Yuan, yearly increasing 10.7%. By taking advantage of local resources fully and based on the needs in travel development, Huangshan has developed the light industrial system with its characteristic. Now, it governs three areas of Tunxi, Huangshan and Huizhou; four counties of Shexian, Xiuning, Qimen and Yixian; and Huangshan scenery area. By the end of 2005, the total population is 1469400, in which agricultural population is 1133200, accounting for 77.1%, and the real labor force in village is 73400, accounting for 50% of total，population density 150 person/ km2, and population natural increasing rate 3.75‰. By the end of 2005, the real formland area in the city is 712500mu, in which paddy field is 633300mu, dry land 79200mu; annual total grain output is 342900 ton, average land per capita for agricultural population 0.63mu, the grain per capita 233 kg, and grain output per mu 481 kg. The total production value in 2005 is 15.998 billion yuan, 12.1% increased than that in the last year. In which, the 1st industry is accounting for 16.4%, 4.1% increased; the 2nd industry accounting for 35.9%, 14.4% increased; the 3rd industry accounting for 47.7%, 13.3% increased. The GDP per capita is 10888 Yuan. The total annual industry and agriculture output value is 11.597 billion

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Yuan, in which the industry is 73.3%, 11.8% increased; and agriculture 26.7%, 5.5% increased. The industry and agricultural product per capita is 7893 Yuan. In 2005, the governable income per capita of rural resident is 8528Yuan, 12.1% increased than last year, and the pure income per capita of rural residents is 3158Yuan, 11.9% increased than last year. The culture, education and sanitary cause is developed. By the end of 2005, there were 5 broadcasting stations with 5 programs, and 5 TV stations with 5 programs, the broadcasting and television comprehensive population coverage rate 90.1% and 97.0% respecitvely. Totally, there are 1 univercity, 152 middle schools and 115 primary schools, with full-time teachers of 13318. The entrance rate at primary school stage is 99.7%. The sanitary cause is strengthened further and medical condition is improved further. By the end of 2005, there are totally 184 sanitary organizations (epidemic prevention stations), 4220 sickbeds, 5503 professional sanitary technical people. ③Social and economic development plan During “Eleventh Five-year Plan, effort will be made to strengthen the central position of travel economy further so as to drive the related development. According to requirement to build “Anhui as a head in travel, travel center in East China, Chinese famous brand in travel and famous scenic spot in the world", and through creating a new mind, setting up the travel trade chain and quickly developing travel trade group, it is to drive the related effect from travel trade, and bring the modern agriculture and new industry as well as and modern service trade, build Huangshan mountain as famous scenic spot as soon as possible, and make industry to develop in coordination. Based on optimization of industrial structure, raising benefit and reducing consumption, it is to ensure that annual increasing of GNP in the area should be up to 4%, GDP in 2010 up to 30 billion Yuan, the financial income up to 2.5 billion Yuan (yearly increasing 15%), the visitors over 20 million person-time, total income from travel up to 20 billion Yuan, foreign visitors up to 1 million person-time with income of 0.25 billion U.S. dollar. The increasing in major economic index should exceed the average of the whole province, the major index of average per capita shall be in the top rank in the whole province, and average production value per capita in 2010 should be 1.5 times more that that in 2000. ④ Travel development plan In the travel development for Huangshan, it is to take Huangshan scenery area as a head and Tunxi as a base, by fully using and reasonably developing the regional natural sight and cultural legacies, it is to form a travel service axis by Huangshan mountain -- Tunxi. It is planned to form a new system with Huangshan sight area as a center and develop the travel resources around. With Tunxi as a best service base in the whole area, it is to form a circular travel system with Tunxi, Yixian, Huangshan and Shexian. (1) Huangshan travel system: it is to construct Gantang with “Landscape" as theme, coordinate the development relation among West gate and North gate of Huangshan as well as Tiaping Lake, develop Taiping vacationer area, and strengthen the function of distributing center in Gantang. (2) Shexian travel system: it is a travel system with ancient folk house and historical cultural city as a theme, effort should be made to apply for Yuliang ancient village and Yuliang dam as the world cultural legacy, which will be connected to travel line of Xucun-Chengkan-Tangyue- Tangmo. (3) Yixian travel system: by Wannan folk house as theme, it is to develop Yixian travel system.

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Comparison of social and economic indexes of two cities in 2005 Table 2-2 Population GDP Per capita Ratio of 3 industrial Region Quantity Proportion in GDP 4 Proportion in Quantity sectors （10 8 China （ ） China（%） （10 Yuan） Yuan persons） （%） Huangshan 146.94 2.3 159.98 3.0 10888 16.4：35.9：47.7 city Xuancheng 273.56 4.2 251.53 4.7 9195 21.9：37.4：40.7 city Anhui 6515.5 100 5375.8 3.0 8251 17.9：41.6：40.5 province C Jingxian ① Natural resource status and features Jingxian, subordinate to Xuancheng city, locates in the southeast of Anhui province, bordering with Xuanzhou city and Ningguo County in the east, Huangshan area and Jingde County in the south, Qingyang County in the west and Nanling County in the north. It, at the boundary of Jiangnan plain and Wannan mountain area, is 66km long from the east to west and 53km wide from the south to north, and has the land area of 2054.5 km2, the population density of 172 person/km2. Jingxian county is one of poverty counties (which shall be supported) in Anhui province mountain area and reservoir area, and has poverty population up to 12700, with poverty rate of 3.6%. Jingxian is rich in minerals resource, and has more than 10 nonmetal mines such as coal, marble, china clay, kaolin, quartz, etc. mainly, with coal storage 20 million ton, marble storage over one hundred million; and has metal mines of iron, copper and golden, manganese, etc. mainly. Now, minerals with different scale have been developed successively, and industries of coal, metallurgy, construction material, etc. have formed in a certain scale. Jingxian is named as “Ancient County in Chinese and well-known District in Jiangzuo” and also named as "City of Rice Paper", and is original and producing place for the treasure rice paper. It is rich in travel resources and famous for " Green Mountain and Beautiful Jiangnan", has over 40 protective relics at state, province and county level, and is one of famous red travel lines. As that it has the ecological travel resources of famous Taohuatan (it is well known by “Poem for Wang Lun” written by Li Bai), the national key protective relic –site of former headquarters of the New Fourth Army, Ancient architecture group of Ming and Qing dynasty, Shuixi Double Tower, Baosheng Temple, Huishui Drift, Caicun Bamboo Sea, now efforts are made to develop those travel resources. ② Social and economic development status It governs 138 villages of 11 town (ship)s. By the end of 2005, the total population is 354100, in which agricultural population is 288900, accounting for 81.6%, the natural population increasing rate is 0.73‰, the real labor force in village is 191000, accounting for 53.8% of toal. Recent years, measures of training and guidence adopted by government, the surpuls labor forces change to work in non-agriculture, and outgoing forces in 2005 are up to 74200 person-time. By the end of 2005, the real formland area in the county is 283000mu, in which paddy field is 251000mu, dry land 32400mu; the reformed farmland with low and middle output is 7600mu, and newly constructed nuisanceless tea and vegetable base is 5000

19 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） mu for each. Annual total grain output is 143200 ton, average land per capita for agricultural population 0.98mu, the grain per capita 404 kg, and grain output per mu 506 kg. The total production value in 2005 is 2.328 billion yuan, 9.1% increased than last year. In which, the 1st industry is accounting for 25.1%, 1.8% decreased; the 2nd industry accounting for 33.4%, 17.2% increased; the 3rd industry accounting for 41.5%，9.9% increased. The GDP per capita is 6575 Yuan. The total annual industry and agriculture output value is 2.664 billion Yuan, in which the industry is 63.7%, and agriculture 36.3%.The industry and agricultural product per capita is 7254 Yuan. In 2005, the pure income per capita of rural residents is 2657Yuan, 6.8% increased than last year. The culture and education cause is developed. Totally, there are 141 schools of all kinds, and the entrance rate at primary school stage is 100%. There were 1 broadcasting station, the broadcasting and television comprehensive coverage population is 330000 and 341000 respecitvely, and the broadcasting and television comprehensive population coverage rate is 93.2% and 96.3% respectively. The sanitary cause is strengthened further and medical condition is improved further. By the end of 2005, there are totally 24 sanitary organizations, 545 sickbeds, and 435 professional sanitary technical people. The sanitary epidemic prevention and health protection of women and children is strengthened continuously, the baby death rate is 14.8 ‰, systematic management rate of children less than 7 years old is 78.8%, systematic management rate for pregnant is 86.0%, and new maieutic measure adopted is 100%. ③Social and economic development plan During "Eleventh Five-year plan", Jingxian, taking scientific development as head and jumping development as a core, will carry out the whole development by constructing the county with ecology, strengthening county by industry and making people being rich. The major goal of national economy and social development is that: GNP will increase over 12%, the proportion of three industrial sectors will be 18:44:38; the financial income shall be increased continuously; and the yearly increasing in the social asset investment shall be 18%. The increasing of average pure income per capita shall be more than 5%. By developing the circulation economy, the energy consumption shall reduce about 20% as compared with that in end of "Tenth Five-year plan". D Huangshan District ① Natural resource status and features Huangshan area is subordinate to Huangshan city, bordering with Xuancheng in the east, linking with Shexian, Huizhou area, Xiuning county and Yixian county in the south, neighboring Chizhou in the west and Jingxian in the north. It has the area of 1775 km2. Huangshan area is a mountain and reservoir area, the infrastructure condition is poor, and is one of 13 supporting poverty and remote mountains districts in Anhui province. It has the agricultural products of grain, oil plants, woods and bamboo mainly as well as mulberry, dried fresh fruit and animal husbandry, vegetable, wheat, Chinese traditional medicine, tobacco etc.. Of which, two teas of "Huangshan Maofeng" and “Tiaping Houguan” is ranked in the 10 ten famous teas. It has the industries of food, mechanical, and forest industry mainly as well as construction material, textile, papermaking, power, coal, metallurgical industry, etc.. Huangshan area is rich in natural resources, especially being famous for travel resources.

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It has numerous well-known nature scenic spots such as Huangshan Mountain - World Cultural and Natural Legacy in directory by Nations Educational, Scientific and Cultural Organization, Taiping Lake (named as a sweetheart of Huangshan), and Huangshan Natural Forestry Park at state level. Besides, it has agricultural byproducts with the local characteristics such as bamboo, timber, tea, and aquatic product. Of which, teas of "Huangshan Maofeng" and “Tiaping Houguan” is well known at home and abroad. It has minerals resources of coal, vanadium, quartz, etc.. Now Huangshan area becomes a travel center in Wannan. It is the important passageway for south provinces of Jiangxi, Fujian and Guangdong to connect Hefei and areas along a river as well as Anhui hinterland; also is the important travel line for four famous ( famous city of Shanghai, famous West Lake in Hangzhou, famous park in Suzhou, and, famous mountain in Huangshan), and is the distributing and vacation center with two mountains and one lake (Huangshan mountain, Jiuhua mountain and Taiping lake). ② Social and economic development status Huangshan area governs 9 community committees, 112 administrative villages, 1 street agency, 11 townships, and 8 towns. By the end of 2005, the total population is 161000, in which agricultural population is 127100, accounting for 78.9%, and the natural population increasing rate is 1.68‰. By the end of 2005, the real farmland area in the county is 149200mu, in which paddy field is 106700mu and dry land 4.25mu. Annual total grain output is 53400 ton, average land per capita for agricultural population 1.17mu, the grain per capita 331 kg, and grain output per mu 358 kg. The total production value in 2005 is 2.172 billion Yuan, 13.8% increased than last year. In which, the 1st industry is accounting for 21%, 2.6% increased; the 2nd industry accounting for 19.5%, 36.0% increased; the 3rd industry accounting for 59.5%, 10.5% increased. The GDP per capita is 13487Yuan. The total annual industry and agriculture output value is 1.514 billion Yuan, in which the industry is 52%, and agriculture 48%. The industry and agricultural product per capita is 9399 Yuan. In 2005, the pure income per capita of rural resident is 3398Yuan, 11.3% increased than last year. Now, the area has accesses connected and telephones, and it is convenient in traffic. The culture and education cause is developed. Totally, there are 141 schools of all kinds, and the entrance rate at primary school stage is 100%. There were 1 library and 19 cultural stations as well as broadcasting station, television station and cable TV set. The broadcasting and television comprehensive population coverage rate is 91% and 93%. There are 21 middle schools and 88 primary schools, with 23955 students. The sanitary cause is strengthened further and medical condition is improved further. By the end of 2005, there are totally 26 sanitary organizations, 454 sickbeds, and 525 professional sanitary technical people. Huangshan area locates at the Wanan mountain area, and is a mountain area and Chencun reservoir area. With less resources per capita and unbalanced resource distribution, the different in living level for people in mountain area is great. ③Social and economic development plan During "Eleventh Five-year plan", Huangshan area will, based on a goal, four focal points and six construction items, develop travel trade, make open to outside, build large market, construct roads to carry construction on Huangshan with better material foundation,

21 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） democracy, safety, ecological environment and civilization. By the leap development, it is to realize the goal of civilized, harmonious, rich and comfortable Huangshan by taking travel as central and industry as pillar. (1) in 2010, GDP will reach to 4.3 billion Yuan, yearly increasing 13%, one time increasing within 5 years. The social asset investment will be 10 billion Yuan within 5 years, and the financial total income will be 0.3 billion Yuan, yearly increasing 14%. The average pure income per farmer will be about 5000 Yuan, yearly increasing 9%. The total production value per capita will be over 3000 U.S. dollar. (2) Accelerate the development of travel project in Taiping lake, perfect the reception capacity for south gate of Huangshan, quicken the construction of Huangshan east and west gate so as to form the travel industrial system with its characteristics and realize the goal of joining with Changjiang Delta and provincial capital (Hefei). It is planned to have travelers over 3.3 million person-time in 2010, yearly increasing 15%, foreign visitors 100 thousand person-time, the total income from travel 2.2 billion Yuan, yearly increasing 26%. See Table 2-3 Social and economic status in 2005 for each county(district) affected by Road Project

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Social and economic status in 2005 for each county(district) affected by Road Project Table 2-3 Anhui Xuancheng Huangshan Jingxian Huangshan Description Unit province city city county area I. Population 1. Total number of household Household 18490000 852170 484981 115130 55733 2. Total population person 65155056 2735630 1469356 354090 161044 In which: agriculture person population 51476316 2266188 1133228 288912 127059 Natural population increase ‰ rate 6.20 3.74 3.75 0.73 1.68 3. Real rural labor force person 29392130 1399305 734356 190513 74955 In which ： for farming, forest, person 17669420 845641 519062 109330 48087 husbandry, sub-line, fishery For industry person 2993425 184137 40188 24362 4610 For building person 2816363 121232 46322 13507 6180 For transportation, storage, person 4994 post communication 836916 52023 13909 2438 For information transmission, computer service person 91083 3278 792 6238 and software business For wholesale, retail, trade, person 17239 hostel and food business 2020720 109503 35458 6094 For others person 2964203 121745 78625 74200 7546 II. National land area Km2 139427 12340 9807 2054.5 1775 III. GDP 108 Yuan 5375.84 251.53 159.98 23.28 21.72 1. First industry 108 Yuan 959.61 55.01 26.16 5.85 4.56 2. Second industry 108 Yuan 2234.23 94.05 57.51 7.78 4.23 3. Third industry 108 Yuan 2182.00 102.47 76.31 9.65 12.93 IV. GDP per capita Yuan 8251 9195 10888 6575 13487 V. Total value of industry and 104 Yuan agriculture 62334180 2885241 1159727 266413 151373 1. Total value of agriculture 104 Yuan 16661915 875302 417361 96660 72591 2. Total value of industry 104 Yuan 45672265 2009939 742366 169753 78782 VI. Total value of industry and Yuan agriculture per capita 9567 10547 7893 7524 9399 VII. Agriculture 1. Farmland area mu 61386765 2264070 712500 283035 149205 In which：paddy field mu 27322485 2024460 633300 250635 106650 Dry land mu 34064280 239610 79200 32400 42555 2. Grain output ton 26053140 1181238 342850 143218 53375 3. Grain possess per capita kg 400 432 233 404 331 4. Land possess per capita for mu agricultural population 1.19 1.00 0.63 0.98 1.17 VIII. Staff annual average wages Yuan 15334 15091 15100 13897 15195 IX. Farmer pure income per Yuan capita 2641 3157 3158 2657 3398

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2.2.3 Social and Economic Status of Each Town(ship) Affected by Project A. Effect conditions along line This project involves 30 villagers groups, 7 administrative villages, 3 town(ship)s of 2 counties(district) along the line (See attachment I for details). In order to analyze the project influence and compile feasible resettlement acting plan, each county(district) people’s government organized the resettlement office and related department, the resettlement consulting unit(ECIDI) and relevant local sectors to form the project survey working group to make a whole survey on general condition of social and economic as well as production and living status of town (ship)s and villages affected by the project from Aug. to Sep. 2006 under the unified arrangement of Provincial Road Bureau. The planned Taohuatan ∼ Gantang highway locates at Wannan mountain area, the effected areas are the remote area or the connected area between rural and suburb, which are rich in the natural resources and travel resources, but it is weak in the traffic condition and water conservancy facility for the most of local rural areas, the agricultural byproduct is not in fast and effective circulation and is basically sold in local, the agricultural structural development is unitary, the usage of travel resource is fairly less, the advantage in resources is not changed into economic benefit, its economic benefit does not play full efficient, the industry development is fairly slow, the rural economic income is mainly from agriculture, especial from planting and aquaculture mainly. In recent years, because of high and high mechanization in agricultural cultivation and the land acquisition for various constructions, average resource per capita decreases gradually, and there are more and more rural surplus labor forces. According to statistic, 20% ~ 40% of the rural surplus labors engage in outgoing work so as to make up insufficiency in family income. Limited by the local traffic and basic facility condition, the various resources is not used and developed reasonable, and the local rural economic condition is poor generally. See Table 2-4 Social and economic status in 2005 for each county (district) affected by Road Project. B. Affected town(ship) condition ⑴ Taohuatan town Taohuatan Town belongs the cultural protective town at province level, and has the area of 86.03km2. It is neighboring with famous travel scenic spot (Huangshan) in the south and the famous Buddhism scenic spot (Jiuhua mountain) in the west, and is 85km away from Huangshan, 90km away from Jiuhua mountain and 144km away from Wuhu. Taohuatan Town has 1 resident committee, 6 administrative villages. By the end of 2005, the total population is 32302, in which agricultural population is 29598, accounting for 91.6%. The real farmland area is 33066mu, the average land per capita for agricultural population 1.12mu. In 2005, the pure income per capita of farmers is 2709Yuan. Taohuatan not only has the natural landscape of mountains and rivers, but also has human culture and sights. The famous poet, Li Bai, was invited by Scholar Wang Lun in Jingxian to visit Taohuatan and drink in " Wanjialou", and wrote a special poem of " Depth Water in Taohuatan can not be matched with friendship of Wang Lun". In order to multiply and keep culture of Taohuatan, the later generations build ancient architecture groups of Taibai building, Yimen, Huaiyuange, Tage’ange, Mengtanxuan, Chinese first ancestral temple

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(Dishi Ancestral Hall), Wenchangge, Wancun and Shuidong old street, Nanyangzhen gateway, etc., which forms the special sight spots in Taohuatan. It is the area with products of paddy, rape and beans, peanut, sesame and tea; the well-known local products of Chinese yam and orchid tea; aquatic products of carp, redfish, famous snowflake fish and other precious fishes; and minerals resources of coal, limestone and quartz stone. The rich product resource has established the important material foundation for developing of Taohuatan economy. ⑵ Longmen township Longmen Town locates in the north foot of Huangshan Mountain, bordering with Xinming town in the east, 26km away from the north gate of Huangshan in the south, connecting with Xinhua town in the west, and neighbouring with Taohuatan in Jingxian County in the north. It is a mountain and reservoir area, and also former revolution area and poverty town. It has 39 villagers’ groups, 8 administrative villages. The total population is 5234 from 1730 households, in which agricultural population is 3024, accounting for 57.8%. It has 27 villagers’ groups from 6 administrative villages, with 4000 persons living by bank of beautiful Taiping Lake. It has the area of 114km2, in which the mountain area is accounting for 71%, with timber quantity of 160000 m3 and bamboo quantity of 4050000; the tea garden area is 4200 mu, with yearly dried tea output 75000 kg. It has rich product resources, good ecological environment, beautiful natural sight, and profundity cultural base. It has the landscapes of Taipingwan, Yaolong Cavern, Huangjindao, the native place of former General Zuo Kuangzheng, with special characteristics. Longmen town is not only the place to plant well-known tea "Taiping Houguan" , and also is the gold section on travel line with "Two Mountains and a Lake ". But the most of local households have to climb maintain if they go out and they have to go by ship if they buy rice because of poor basic facility, separated by Taiping lake and Longmen mountain range, inconvenience traffic and inaccessible information. The major income source of farmers is from tea, woods and bamboo, and outgoing work. The income in 2005 is 4888400 from tea, accounting for 62% of total agricultural income, and 2180900 Yuan from forestry, accounting for 28% of total agricultural income. By the end of 2005, yearly average income per capita is 2013 Yuan. ⑶ Gantang town Gantang town locates at the south of Anhui province, and is the area between famous scenic spot Huangshan and Taiping Lake. It is 130km and 220km away from Tong Ling and Wuhu respectively in the north, and 115km away from Tunxi Air Port. It has S103 road and He-Tong expressway (under construction) passing through, and is the traffic transferring station to "Two Mountains and a Lake”. It has the area of 104km2 and 2 resident committees, 12 administrative villages. By the end of 2005, the total population is 17241, in which the agricultural population is 16043. Gantang town is rich in the products and resources, and has the forest land 99000 mu, standing woods of 170000 m3, bamboos of 3600000, forest covering rate 56.7%, the tea

25 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） garden area of 953 mu, and yearly dried tea output 270000 ton. The cultivated land is 11285 mu, average land per capita for farmers is 0.7mu. Agricultural plants are mainly of paddy, vegetable, fruit and sugarcane. Gantang has numerous well-known scenic spots and historic sites of Liujiaolou, Xingcun Ancestral Hall, Zhongshan Nunnery, Xiaohuangshan, Mengshan National Forest Park, Huangjing island, Caigonggu, Shilihan Natural Protective Area and Cultural Park, undeveloped Jiangjiashan site, etc.. Social and economic status for town(street) affected by Anhui Road Project III S322 Taohuatan~Gantang Table 2-4 Town(ship) Jingxian county Huangshan area Index Taohuatan town Longmen township Gantang town I. Population 1. Gross household （household） 10131 1730 5234 2．Total population（person） 32302 5274 17241 Of which：agricultural population （person） 29598 5011 16043 II. Actual rural laborers （person） 15080 3024 10127 1．Agricultural laborers（person） 6310 2188 1587 2．Industrial laborers 1441 34 1976 3．Laborers in construction industry 2114 111 2323 4．Laborers in transportation, storage and posts and 719 50 523 telecommunications 5．Laborers in wholesale and retail trade and catering 1471 138 865 industry 6．Other laborers in non-agricultural industries 1949 366 2853 III. Farmland area（mu） 33066 75 11285 Of which：paddy field 30510 9993 dry land 2556 75 1292 IV. Garden（mu） 3479 1823 V. Gross income of rural economy（104 Yuan） 25651 1740.7 49500 1．Agriculture 14471 794.68 4403.44 Of which：crop farming 8049 502.66 2439.69 Forestry and fruit 1540 218.09 486.99 Animal husbandry 3950 18.62 1334.36 Aquiculture 132 55.31 142.4 Sideline 800 2．Industry 6395 186.1 10321.98 3．Construction industry 953 266.94 12702.69 4．Transportation trade 1411 40.83 2630.9 5．Catering industry 1914 307.39 4464.63 6．Others 507 144.74 14976.36 V. Income of outgoing work 104 Yuan） 2500 284.44 985.43 VI. Farmer per capita net income（Yuan） 2709 2013 4105

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2.3 Road Existing Status and Analysis of Necessity of Rebuilding 2.3.1 Traffic Facility Status ⑴ Xuncheng Xuancheng, 280 km away from Shanghai, locates at the edge of Changjiang Delta area (the developed economy area in China), bordering with developed area of Hang-Jia-Hu area in Zhejiang province in the east and linking with the most developed economic area of Su-Xie-Chang-Ning in Jiangsu province in the north. Now, the traffic transportation includes highway, railway and waterway. Highway: it has G318, G205 and over ten roads at province level to form a convenient traffic transportation network. It has Wangan railway going through from south to north and Xuanhang railway going through from east to west. By Fuhuai railway, Huainan railway, Wangan railway, Xuanhang railway and Hangyong railway, the East China Second passageway is formed. Xuancheng locates at interchanges of Wangan railway and Xuanhang railway. Xuancheng city is the first stop in economic radiation from East China developed area to the west area, the highway is still major transportation way in local. Though, the traffic network is perfected comparatively, the highway grade is lower. By the end of 2004, the road open to traffic was 4751 km, the proportion of highway with high-grade road surface is less, only 396km, accounting for 8.3% of all roads open to traffic, the highway with secondary-grade road surface is about 2000km, accounting for 42.1%, others are roads with middle and lower grade and roads not open to traffic, accounting for 49.6% of all. In 2004, Xuancheng has the highway passengers of 36.60 million person-time, the transferring passengers 2.319 billion person/km, the highway freight 17.57 million ton, and the circulation volume for goods 2.239 billion ton/km. Therefore, the existing situation of highway with low grade can not meet needs of local economic development day by day. ⑵ Huangshan city Huangshan city locates in the south of Anhui province, connecting with Hu-Ning-Hang in the east, E-Gan in the west, Xuancheng and Chizhou city in the north, and is at connecting area of Wan-Zhe-Gan provinces. Now, Huangshan city has a complete comprehensive transportation network, which is consisted of highway, railway, waterway and aerial transportation. It has Wangan railway going through four counties and two districts in Huangshan to connect with Nanjing in the east and Yingtan in the west, has the navigation way of Xin’anjiang river (which is the gold waterway to Zhejiang Qiandaohu Lake), and also has Huangshan airport (at State Grade-1) with 29 routes to Hefei, Beijing, Guangzhou and Xi'an, etc.. In comprehensive transportation network, the highway transportation is in the leading position. By the end of 2004, the roads open to traffic is 2807km, the proportion for highway with higher grade is less, only 427km highway above Grade-II, accounting for 15.2%; the road below grade-II is accounting for 84.8%, and the road with secondary high-grade is accounting for 67.3%. In 2004, the passengers through highways are 30.45 million person-time, the transferring volume for passengers is 1680.30 million person/ km. The highway freight is 22.21 million ton, and the circular flow for goods is 1237.48 million ton/km. By survey, it shows that highway is a main traffic way for the project affected area because of its characteristics of

27 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） wide covering, extending and directing so that the demand of transportation by a highway increases quickly. But the highways in the project construction area are mainly of ones with Grade-III and Grade-IV, with many problems, those cannot meet needs of economic and tour development along the line. Therefore, the best way to improve traffic transportation condition is to reconstruct the existing highway by heightening its grade. ⑶ Jingxian county Jingxian county is subordinate to Xuancheng city, and highway is major the passageway as that there is not a railway and waterway in blocking. The traffic in Jingxian are that: by highway, it will connect with G205 in the north, S311 and Tong-Tang expressway (under construction) in the south; by railway, it will connect with Wangan railway and Xuanhang railways via Xuanjing highway; by waterway, it has navigation line in Taiping lake to connect 9 towns along the lake. In 2004, the passengers through highways are 1.636 million person-time, and the transferring volume for passengers is 22 million person/ km. In order to accelerate the overall economic social development of poverty area, promote the travel resource in the county to connect with “Two Mountains and a Lake”, and structure a reasonable and shortcut traffic network by expressway, with state and province road as a trunk and the rural road as radiation route as well as village road as extending line, it is necessary to construct S322. ⑷ Huangshan District Huangshan area is subordinate to Huangshan city, and has obvious advantage in its position. With G205, S103 and S218 road going through, Huangshan area becomes Wannan travel center, and is the important passageway to connect with south provinces of Jiangxi, Fujian, Guangdong, etc. as well as Hefei, areas along the river and Anhui hinterland. Now the basic facility for traffic in Huangshan area falls behind, the transportation mainly rely on the highway, but the highway grade is lower. By the end of 2004, the total length of road is 366 km. Of which is only 46km for highway with Grade-II, accounting for 12.5%; 128km for highway with Grade-III, accounting for 35.0%; and 192km for the road with grade-IV, accounting for 52.5%. in 2004, the passengers through highways are 3.76 million person-time, and the highway freight is 4.605 million ton. In order to accelerate the overall economic social development and promote the travel resource, it is necessary to reconstruct the road for heightening its grade. 2.3.2 Necessity of Road Rebuilding ⑴ Requirement of promoting resource development and regional economic development The project is at Wannan mountain area, S322 Taohuatan～Gantang section not open to traffic because of Taiping lake and Longmen mountain range. It is only beheaded highway in Anhui province, which seriously effect the traffic and economy connection along the line. Now, the traffic from Taohuatan to Huangshan area is by S103 via county road from Taohuatan to Shaji town, which is about 82km long. The road is narrow, the roadbed only 7m width and the road surface 5m wide. It is of sand surface road with serious broken surface and more than 12 turnings at Longmen mountain range section (about 7km at Jiangjiakeng ∼

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Majia section), and poor safety. After the project construction completed, the road from Taohuatan to Huangshan will be shortened 51 km, and travel time will be shortened 1 hour. The traffic facilities for town(ship)s along the line are poor, especially inconvenient for Longen town because it separated by Taiping lake and Longmen mountain range, 4000 persons have Existing access to outside in to climb maintain if they go out and they have to go by ship if Lianhong village they buy rice. Their living condition is very bad. The construction of this project will change the weak point in the highway network, put “Beheaded highway” in Anhui province into end, form a skeleton highway network by connecting with G205 and S103 as well as Wuxuanhang highway and S322 Taohuatan~Gantang section, improve the highway network of Wannan mountain area, perfect the regional highway network, improve the local traffic condition, and be convenience for residents along the line.

Interview 1: Wu XX, male, 57 year-old, farmer in Lundu Villagers along Taiping Lake going village of Huangshan area out by ship

His home is at the bank of Taiping Lake; it is inconvenience traffic because of Taiping Lake and Longmen mountain range. He said that villagers go to the county by a ship, about 11 km, and by a bus, about 15km. Because ferryboat and bus has is timing, therefore it would take one day at least for them go to county normally. Especially inconvenience for pregnant woman, it will spend too money (which is hard a family to bear) if she goes to hospital too early, otherwise the pregnant woman and baby will have risk if she goes to hospital just at childbearing time. It is said that a pregnant woman born baby on ferryboat the year before last. Therefore villagers hope and support the project construction, and expect the project construction to start as soon as possible so that they will enjoy the convenient traffic as early as possible. ⑵ Requirments of regionl economic and local resource development The project-affected area is rich in natural resources, it has more than 20 various minerals of coal, iron, gold, calcite, etc.. In which, the storage quantity of calcite is largest in East China. Jingxian is also named as the home of Chinese Rice Paper and wooden comb, and one of province main producing areas with tea, pod, woods and bamboo. Huangshan area is the important place to produce timbers in East China, has the natural arbors over 900 kinds and minerals resources of coal, vanadium, quartz, molybdenum, etc.. At the same time, it is also the area with famous wooden, bamboo, tea, pod, fruit and edible bacterium, and Chinese traditional medicine. Restricted by basic facility condition in traffic, the superior position condition and rich natural resource does not play function in the economic benefit fully. During interviewing, it is known that the project effected area, especial Taohuatan town in Jingxian county and Longmen township in Huangshan area weak in the economic foundation and unitary in the economic structure, so that the agricultural structure should be improved urgently, at the same time, the local goods has to sell in the low price as no deeply processed, and the investment from outside not meet to the expected effect because of the restriction of traffic condition. Huangshan area is famous tea producing area, the tea quality is better, and the tea income

29 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） also is the major part for households in Longmen of Huangshan area. But the price is not ideal because of the inconvenience on traffic transportation. By interviewing, it is known that the tea in Longmen is purchased by tea businessman, obstructed by Taiping Lake, only few of tea businessmen come here to purchase tea. The county has a purchase station, but the price is low, 40~50 Yuan/0.5kg for qualified tea. If they sell tea to the county, the tea price would be 30~40 Yuan/0.5kg after deducting cost of labor and ferryboat. After project constructed, the road will go through from the south to north, and more tea businessmen at peripheries (Hefei, Wuhu, Jiangsu, and other places) will come here for tea, and the tea price would be 70~80 Yuan /0.5kg. The income will increase 2000 Yuan based on output per household 50 Jin (25kg). In another hand, the tea planting area also would be enlarged and tea quality continuously improved as long as the price raising, by developing tea without pollution and famous tea brand, their income will also increase. Therefore, along with the highway construction, it will offer the convenient traffic condition for local and the solid foundation for economic and resource development in area along the line, and accelerate steps of the natural resource advantage changing into the regional economic Tea garden in Lundu village advantage. Interview 2: Huang × ×, male , 56 year-old , farmer from Lundu village of Longnen township in Huangshan area

He said that reconstruction of this road was mentioned several years ago and the measurement was carried out for many times, but he does not know what reason it is not implemented. The inconvenient traffic has a great effect on their production and living, and villagers hope that this highway can be opened to traffic as soon as possible. According to his introduction, the village has no a road to connect with the township, plenty of tea and bamboo can not be transported to outside because of far away from markets and inconvenient traffic, the sale price of tea and bamboo as well as the other agricultural byproduct is very low, they have no much more economic benefit from agricultural products. Therefore, in recent years, villagers neglect in the management of crops, and plenty of surplus labour forces engage in outgoing work. He said that normal the tea is for selling, but less tea businessmen came here for tea because inconvenient traffic, therefore the tea price is low. At the same time, the time for businessmen to purchases tea is very short, about 20 days. Though the selling price is lower than that in market, villagers have to sell for reason that the tea price would be lower after tea purchasing season. He said that if this road opens to traffic, not only the sales of tea is unblocked, by taking travel advantage on Huangshan area, it can drive the agriculture byproduct circulation and promote the development of tea economy, through planting more tea, raising tea quality by intensive cultivation and developing the travel item of “Pleasure Date in Farmer Family”, the surplus labour forces need not to engage in outgoing work.

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⑶ Requirements of travel development in Wannan mountain area The project effected area is rich in travel resources, and Jingxian county and Huangshan area is at the core area with “Two Mountains and a Lake”, and is the travel center and distributing area. Jingxian county has over 40 protective relics at state, province and county level such as famous Taohuatan (well known by “A Poem to Wang Lun” written by Li Bai), the national protective relic –site of former headquarters of the New Undeveloped Hufeng Hall in Fourth Army, Ancient architecture group of Ming and Qing Taohuatan village dynasty, Shuixi Double Tower, Baosheng Temple as well as ecologic travel representatives of Huishui Drift and Caicun Bamboo Sea, and has one of famous red travel lines. It also has numerous well-known nature scenic spots such as Huangshan mountain - world cultural and natural legacy in directory by Nations Educational, Scientific and Cultural Organization, Taiping Lake (named as a sweetheart of Huangshan), and Huangshan Natural Forestry Park at state level. The travel as a new developing trade becomes the pillar in the economic development. Because short of traffic means in the project affected area, buses are the main traffic means for visitors. Whether visitors can go to landscapes in shortcut is the important prerequisite condition for travel development, after the project completed, it will be the most shortcut way for economic developed area to connect with Wannan landscapes. Now, the important highway in Jingxian to connect outside are mainly of S322 and G205, but Beautiful Taiping Lake the grade of two highways in the project effected area are low, with poor road condition, it is hard for a large-scale trailer coach to go in and out, by the restriction of Taiping lake, S322 still is a beheaded road, so that the landscapes in the county cannot be effectively joined with Taiping lake and Huangshan, and the travel development radiation of “Two Mountains and a Lake" is not large. However the road from Huangshan area to Huangshan scenic spot is better, but the road to Taiping Lake is narrow and the carrier capacity is poor, which seriously restricts the effective use and development of Taiping travel resources. Because of the restriction in traffic condition, the local rich travel resource can not be used efficiently and the travel scale is restricted so that it has not a scale economic benefit, the overall development level of local travel resources and the travel income is far below that in the other advanced travel scenic spots. Those are serious restricting the overall economic and social development in the project effected area. The project construction will change the backward situation in traffic facility, offer the foundation guarantee for the enforcement of Wannan travel program, accelerate the development of Wannan travel resource, realize a goal of promoting the travel trade into a higher level by taking Huangshan mountain, Jiuhua Mountain and Taiping Lake (Two Mountains and a Lake) as a head, and promote the development of related trades so as to realize the overall economic and social development along the line by travel trade.

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Interview 3: Hu × ×, male , 46 year-old, Taohuatan village of Taohuatan town in Jingxian county

Now he is a party branch secretary of Taohuatan village. He said that Taohuatan Township has a long history and many humanity sight spots such as Taohuatan, Hufeng Hall, Wancun Old Street and others, which are not developed because of short of capital. Though some foreign investors came here, they thought that visitors and benefit would not be too much because of inconvenient traffic. Last year S322 Taohuatan- county section was completed and open to traffic, the traffic condition is improved already. He thinks that once Taohuatan~Gantang section opens to traffic, the natural scenic spots will efficiently be joined with Huangshan mountain and Taiping lake, and those scenic spots can be developed by capital from outside. Therefore he thinks that the project construction is a very good opportunity for the travel trade development in this region, the village can also, by the development of travel resource, develop supplemental catering trade so as to increase the employment opportunity and increase the rural collective economic income as well as farmers’ income. ⑷ Requirements for residents in project effected area to get rid from poor and become rich, and for promoting local economic development Jingxian county and Huangshan are relative poor counties in the mountain area in Anhui province, with less population and living in scatter, less basic facility, low growth level in merchandise economy, those become the factors to restrict the local economic development. Jingxian (a county in mountain area of Anhui province county and a poor and a key county supported and developed by state) and Huangshan area ( a reservoir area in Anhui province) has the rural poverty population of 16000 and 1900, poverty rate of and 5.12% and 1.47% respectively. The characteristic for residents in mountain area is that those living mountain live of the mountain. The project-affected area has the economy mainly from agriculture, but recent years because of ecological environmental protection, the sales volume of leading products such as bamboo, wood, charcoal and traditional product of mountain area decreases year by year so that the agricultural income for farmer households decreases certainly. Therefore villagers hope that local economic development can be promoted through various way by taking the local resource advantage fully, however, the road in the mountain area is poor, it is very difficult for local economy to develop because of backward situation in the basic facility, the traffic becomes a great obstacle in development. The common understanding of local farmers is that “ Road must be constructed if one wants to be rice" so that residents along the line have a high enthusiasm for highway construction. Now Jingxian and Huangshan, the project effected area, locates at the key region with “Two Mountains and a Lake". Two areas answer the call of Anhui provincial Party committee to develop travel by “Two Mountains and a Lake" actively, have made the ideal of "Building Town by Developing Travel" so as to attract visitors at periphery areas through developing the travel resources of Taiping lake, Taohuatan, etc. and increase the income source of villagers through developing 3rd industry. At the first, the reconstruction of S322 Taohuatan∼Gantang section is helpful for the development of local travel resources, shortening the distance to periphery large cities, attracting more visitors. Secondly, it is helpful to attract capital and information transmission, improve agricultural structure, rise the produce Mulberry field in Taohuatan village

32 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） unit output (such as increasing the planting area of economic crops, improving the crop quality and enlarging the mulberry breed), attract capital to make investment, carry out the primary processing or deep processing for agricultural byproduct but only selling the raw material with a low price. At the same time, highway construction is also helpful to protect the ecological environment and promotes the regional economy developing continuously. The project construction will certainly promote the development of local economy and increase the economic income and living level of local households, then the local household also will not use woods as family major fuel by picking up or felling way. Interview 4: Di × ×, male, 48 year-old, from Taohuatan village of Jingxian county

There are 3 persons in his family, himself, wife and son. He and his wife do farming at home, and they have contracted 10 mu farmland. Of which, 5 mu is planted with paddy, with yearly output of 2800 kg, 3 mu is planted with mulberry and 2 mu is planted with Chinese traditional medicine (Qishu). Now they have 10 pieces of paper for silkworm every year, the annual income from silkworm cocoon 8000 Yuan; the mature period for Qishu is 3∼5 years, no profit now; and the grain is only for self-sufficient and is not sold.

Now the family major economic income is from silkworm cocoon. The project construction involves 0.8 mu land, all paddy fields, accounting for 8% of total paddy land. The land acquisition for the project will have a less effect on his family. Now the goods of this village is transported by tractor, tricycle and other small-sized vehicle normally. Because of poor local traffic condition, businessmen were not willing to come here for purchasing the Chinese traditional medicine, therefore the planting scale for Chinese traditional medicine was not large in the passing years. Now it is said that the road construction will start, he has connected the medicinal businessmen, has planed to plant Ganoderma Lucidum with greenhouse in join venture by using land compensation cost, with the planned investment of 60000 ∼ 70000 Yuan for 10 mu land. In this case he will apply a loan from bank. He has full confidence on that. 2.3.3 Impacts on Production and Living of Local Residents The construction of this project will greatly improve the traffic condition and road status along the line, also raise the road capacity and be convenience for the circulation of goods in project area, and promote the development of local social economy. But at the same time, it also brings various unfavorable influences. According to the inquiry at the site, villagers are worrying about compensation for land acquisition and house relocation during the implementation, but they also express so long as giving reasonable compensation for resettlement according to the policy of country, they will support with construction of this road. For the most farmer households, personal benefit is that they are care for very much undoubtedly, if the self-benefit does not to be practically guaranteed or be intruded, it is hard to avoid a lot of worries. Interview 5: Chen × ×, male, villager from Lianhong village of Taohuatan Town in Jingxian county

According to his introduction, the land acquisition for the highway reconstruction will involves over tens farmland and garden land, the removal of facilities such as partial power line and telephone line, the relocation of a few households, and will cause the damage on the existing irrigation canal, at the same time, it will bring noise and air pollution during highway construction and cause the inconvenience and the confusion for villagers’ production and living. He thinks that those cannot be avoided, but the related department shall have proper solution for those,

33 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） especial paying attention to compensation for the land acquisition. If the government not pays attention fully on the compensation for land acquisition and house relocation, the compensation policy will not be implemented, the benefit of villagers will be infringed, and the contradictory may be arisen during construction. They hope that every compensation cost should be directly paid to villagers according to national relevant policy and the transferring shall be reduced as far as possible. Certainly, the construction of road will bring benefit while bring a lot of social problems, such as occupy the farmland and house relocation, traffic hidden trouble and social security problem, etc., which makes local residents be worry about and this is common problem they are talking about during the interview, but they believe that the construction of road will bring benefit surely for local and personal development. The problems resulting from the construction can be set down completely. They believe that after rebuilding this section, it will improve local traffic condition further, attract foreign capital, develop travel resources, have more investment to set up factory, develop deep processing of local specialties’ and offer more employment opportunity for local persons. On survey, villagers said that they would actively support and cooperate the highway reconstruction so long as the reasonable compensation paid. For example, the special persons were sent by each town (ship) along the line to carry out the corresponding work and cooperation of designing institute during the measurement setting out and inventory index survey at the early stage, many villagers gave the spontaneous help for needs of felling partial woods, and no disputing condition occurred during felling woods. The local people also think that the highway reconstruction is a good deed for the local economic development so that they support the work all away. Interview 6: Zhuo XX, male, 35 year-old, villager from Dongken Village of Longmen Township in Huangshan area

There are 4 persons in his family, 2 children studying at the primary school, himself engaged in outgoing work in Zhejiang province before, now himself and his wife farming at the village. He thinks that it is very correct way of "A road must be constructed if one wants to be rich", which is the experiences from economic developed areas such as Jiangsu, Zhejiang, etc.. He said that after the road construction completed, it can bring more visitors and retailers, they can sell the tea, the local special goods of dried bamboo shoots to visitors, or sell those to other places by shortcut and convenient traffic condition, so that they get better benefit certainly. He thinks that the highway construction will improve the local traffic condition, promote the local economic development, widen the employment way, and bring more development opportunity for his family and Dongken village. He expresses that he supports the project construction and hopes that, also the opinion of the most of villagers, the construction troops shall work with civilization way and place the construction equipment and material on the idle area not to affect the tea garden in the village, and reasonable compensation shall be paid according to relevant policies of state for tea land acquisition. 2.4 Analysis of Project Impacts The analysis of project impact is mainly to understand possible social influence to local people, attitude and response of affected persons, specially for employment mode and income structure of affected families due to land acquisition, seek measures to reduce harmful impact due to decreasing of land after the land acquisition, help us correctly to understand the economic impact by the land acquisition and is helpful to prepare the resettlement acting plan. Therefore, the project survey team carried out survey for 7 villages in the project affected

34 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） area, visited and filled questionnaire paper randomly for 36 households among households regarding for land acquisition and house relocation, accounting for 14.1% of total, detailed survey on basic production and living status, covering all project affected area and having representative and typical features, which can be used as the basis for project assessment. See Table 2-5 for details of samples. Distribution of Survey Samples Table 2-5 Quantity of Quantity of Total affected Surveyed County Town（residential affected Percentage surveyed villages households households （District） district） villages （%） （ea.） （household） （household） （ea.） Taohuatan town 2 2 142 22 15.5 Jingxian Sub-total 2 2 142 22 15.5 Longmen 3 3 70 10 14.3 township Huangshan area Gantang town 2 2 44 4 9.1 Sub-total 5 5 114 14 12.3 Total 7 7 256 36 14.1

2.4.1 Analysis of basic condition for surveyed village ⑴ Typical type of production structure ① Effected villages mainly engaging in traditional agricultural plant and outgoing work They are villages of Lianhong, and Taohuatan village in Taohuatan town of Jingxian County mainly, and the residents in those villages plant the traditional paddy mainly and some of them plant mulberry and raise sericulture. In those villages, because of poor local traffic and basic facility condition and not well economic development level, most of young and mid-aged labors engage in outgoing work. Lianhong village has 340 households with 1236 persons, by the end of 2005, the farmland is 3404mu, in which paddy field is 1804mu and dry land 1600mu. Total labor forces are 504 persons, accounting for 40% of total, engaging in traditional planting and outgoing work mainly. By the statistics, 400 persons go out for labor service each year, about 40% at a long-term, and working place mainly at costal advance provinces and cities as Shanghai, Zhejiang and Guangdong. The males work in the constuction field and females engage in housekeep, house management or work in a factory. By the end of 2005, the pure income of peasants per capita is 2778 Yuan. Taohuatan village has 577 households with 1885 persons, by the end of 2005, the farmland is 3255.5mu, in which paddy field is 2495mu, dry land 760.5mu and the forest land 12500 mu. Total labor forces are 731 persons, the labor force engaging in traditional planting is accounting for 60% of total, in outgoing work is accounting for 30%, and in others is accounting for 10%. By the statistics, 200 persons go out for labor service each year, and working place mainly at Shanghai, Zhejiang, Jiangsu, Guangdong, and Fujian. The males work in the constuction field and females engage in housekeep or other service. Over 90% of labor forces go out at the second and third day of Chinese New Year and come back before the next Chinese New Year, the pure income per capita is 6000 Yuan. By the end of 2005, the

35 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） pure income of per capita in the village is 3010 Yuan. Interview 7: Zhang XX, male, 52 year-old, villager from Lianhong village of Taohuatan town in Jingxian County

There are 4 persons in his family, himself, his wife, a son and a daughter. His family contracts 9 mu paddy field and 2 mu dry land totally. After a part of paddy field altered to plant mulberry (for raising sericulture), the yearly grain from the rest paddy field is 3000kg, 1000kg for themselves, and 2000kg for selling with income of 2800 Yuan. In addition, they raise sericulture for 4 pieces of paper every year, with income 3000 Yuan. His son and daughter engage in outgoing work at Shanghai, his son works at barbershop and his daughter works in a hotel, with income 8000 Yuan every year. ② Rural community mainly planting characteristic economic crops of vegetable and tea, etc. or engaging in water surface breeding They are villages of Yuechun village in Longmen township, and Yuhe village in Gantang town of Huangshan area, and farmers mainly plant the vegetable and tea or raise fishes by net in Taiping lake, and engage in outgoing work at slack season. Yuhe village is about 3km away from the southeast of Gantang town in Huangshan area, and belongs to urban planning area of Huangshan area. The village governs 6 villagers' groups, and has the farmland 1407mu, in which paddy field is 907mu and dry land 500mu. It has 268 households with 786 persons, and total labor forces 586 persons, accounting for 74.5% of total. The labors mainly engage in the agricultural production and work in near areas. Except planting paddy and sugarcane, by taking the geography advantage of nearing urban, the village develops the vegetable Green house vegetable in Yuhe production and has formed a family operation pattern of "Men village planting vegetable and woman selling vegetable". Especially 90% households in Oujiachong villagers' group have greenhouse vegetable. Now the village becomes one of major production bases to provide vegetable for urban in Huangshan area. Yucun village has the tea garden land 645mu, the forest land 11856mu, and water area 6000mu. It is the producing area for famous Taiping Houguan Tea in Huangshan. The village has 201 households with 586 persons, the total labor forces are 337, mainly engaging in tea planting, forest production and aquatic breeding in a reservoir and bay. The total income of the village in 2005 is 1.2624 million Yuan, 65% from the tea, 10% from forestry, 10% from fishery industry, 10% from the outgoing work and 5% from others, and the pure income of per capita in the village is 1955 Yuan. Interview 8: Xia XX, male, 31 year-old, villager from Yanling group of Lundu village in Longmen township of Huangshan area

There are 5 persons in his family, with parents living together. His family income is at middle level in the village. His family contracts 3mu tea garden and 0.3mu dry land. Because of no paddy field, they buy grain mainly, 1500kg rice every year. The yearly income source of family is from tea, the yearly tea output is over 200 kg, in which spring tea is about 150 kg and summer tea is about 70kg. The local tea has a high quality and is well-known ones of Huangshan Maofeng and Taiping Houkui, with annual tea income 8000 Yuan. After tea picking season, his parents manage the tea garden at the village, and young and middle-age labors go out to work. He has been to Hubei and

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Huangshan city to engage in construction field, and his wife went to Shanghai last year to be a housekeeper for 5 months, the income from the outgoing work for him and his wife is about 5000 Yuan. ⑵ Analysis of the village economic condition Because of the discrepancy of natural environment, basic facility and economic consciousness in surveyed five administrative villages along the line, the economic condition of each village is different. Through analysis, it is discovered that they have general characters on the social economy as follows: ① The effected households, mainly having the traditional grain crop as pillar industry, have no more high enthusiasm in farming resulted by the lower profit from the traditional agricultural planting, though the state has established a lot of preferential policies for agricultural production in recent years, the investment cost is increased so that no income or less income is increased in case of output increasing, or the profit is not higher because of small planting scale, therefore it makes the farmer households have no high enthusiasm in farming. ② The outgoing work is an important channel for farmers to increase income and become rich, the labor number and working duration in outgoing work become an important basis to measure whether a village is poor or rich. Through randomly interviewing persons along the line, it is discovered that no matter for a village or a family, the economic base would be more strong if they engage in outgoing work early. Especially for a household, through outgoing work, they can earn more cash, experience the new living style in urban, learn some new value viewpoints, raise their ability, and widen their thought. Anhui province, as one of provinces in China with most labors engaging in outgoing work, the change of agricultural structure is as that the proportion engaging in the agriculture reduces continuously, but labors in outgoing work increase year by year, the project affected area also has this characteristic. Summary of Outgoing Labors Table 2-6 Number of Total Percentage of Villagers migrant outgoing labors population Main locations commission worker against total （person） （person） population Shanghai, Zhejiang, Jiangsu, Taohuatan 1855 220 11.86% Guangdong and Fujian Lianhong 1236 400 32.36% Shanghai, Zhejiang, and Guangdong Shanghai, Zhejiang, Jiangsu, Lundu 1012 208 20.55% Guangdong and Fujian Shanghai, Zhejiang, Shandong, Beijing Dongkeng 618 176 28.48% and Hefei Shanghai, Zhejiang, Jiangsu, and Yuchun 586 105 17.92% Guangdong Data source：From survey team on each village Interview 9: Zhou XX, male, 67 year-old, villager from Dongken Village of Longmen Township in Huangshan area

There are 6 persons in his family. He and his wife are old and not farm any more, and his son and grandson engage in outgoing work in Nanjing. His family contracts 7mu tea garden, which is shifted to others with yearly income of 1400 Yuan. Moreover, they have yearly income 1200 Yuan from bamboo and 10000 Yuan from

37 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） outgoing work. He said that the family economic condition was fine before, but has owed the debt of ten thousands Yuan because of his daughter-in-law falling a serious illness at last year. Now, his son and grandson go out to work in other place. He said that income from outgoing work is rapid than that from selling tea, according to the income now, he will pay off debt after 3 years, which is impossible in the passing years because of the high medicine burden. Now, most of young and middle age labors in the village engage in the outgoing work, basically 1 person per household. ③ The effected villages mainly planting tea and aquatic breeding as pillar industry. Those belong to the mountain area and reservoir villages and are lack in the cultivated land source, and the local rural economic income is mainly from planting tea on the mountain land and breeding on the vast water surface. But now, these areas have weak economic foundations and the residents are very poor. By survey, it is discovered that the area is at the bank of Taiping lake and rich in the travel resources, but because of inconvenience traffic, the resource development and usage level is not high, the circulation of the agricultural byproduct is not effective, the additional value of product is lower, which causes the enthusiasm of villagers in planting and breeding not high and malignant cycle in the local agricultural production. Therefore, highway reconstruction will improve the highway network in this area, make the social connection between counties, areas and provinces be more shortcut, be helpful for sales and transportation of local agricultural products and also be help to attract foreign capital, promote the development of local travel trade, and promote the regional goal of harmonious development in social economy. ④ Areas with vegetable base mainly. Those are at the connection area between rural and urban mainly, with the developed basic facility and obvious advantage in position, most of households have known gradually that traditional planting can only solve the problem of the basic need of family but can not make a family become rich, only through adjusting the agricultural structure and developing the economic crops with high value or agricultural project continuously to make local industry form a scale step by step, and open up various operation channel actively, so that it is possible to increase the economic income. 2.4.2 Analysis of Basic Condition of Family ⑴ Basic condition of family Basic condition of family: There are totally 36 families with 160 persons surveyed this time, among the surveyed people there are 156 agricultural residence registration persons, accounting for 97.5% of total population, and 4 non-agricultural residence registration persons, accounting for 2.5%. Among total population female population is 73 persons, accounting for 45.6% of total, male population 87 persons, accounting for 54.4%. The population surveyed is Han nationality without minorities. 18~59 working age are 101 persons, accounting for 63.1%. Population age distribution in family: Among 36 households with 160 persons, there are 7 persons under 8 years old accounting for 4.4% of total; 27 persons between 8~18 years old accounting for 16.9%; 105 persons between 19~60 years old accounting for 65.6%; and 21 persons over 61 year’s old accounting for 13.1%. Family scale: By the scale of family, the minimum is 1 person and largest 7 persons,

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4.44 persons for average, 1.31 persons more than the average of 3.13 for family scale by national survey in 2005. Family structure: There have 2.8% families living only spouses without kids, 43.6% families belong to spouses living with unmarried kids, 57.2% families belong to parents (or one of parents) living with married kids, 2.8% families belong to living alone bereft spouse, 5.6% families belong to unmarried kid living with father bereft spouse. Cultural level distribution condition: Among the investigated family, there are 156 persons over 6 years old, in which illiterate are 13 persons (accounting for 8.3%), 45 persons with primary school level (accounting for 28.9%), 79 persons with middle school level (accounting for 50.6%), 10 persons with secondary school level (accounting for 6.4%), 7 persons with technical secondary school, technical school and vocational high school level (accounting for 4.5%); and 2 persons with college level (accounting for 1.3%). ⑵ Land resource possess condition Land is the most basic production material to farmers and is also the basic guarantee of survival. Overall, land for farmer per capita in Chaohu city is 1.19mu, in which Huangshan city is 0.63 mu, Xuancheng city 1.00 mu, Huangshan mountain area 1.17mu, and Jingxian county 0.98mu. The project affected area is at Wannan mountain or connection area of Wannan mountain area, and the land as productive material for a family is divided into two parts: one part is cultivated (garden) land, by the survey, there are 9 households without farmland (accounting for 25%), those families belong to Longmen town of Huangshan area, which is the mountain and reservior area town, only with 75mu dry land but without paddy field, planting tea and breeding aquatics mainly. The average tea land area per household is 4.9 mu, the minimum 2.5 mu and maximum 8 mu. there are 27 households with the farmland, accounting for 75%; the average tea land area per household is 6.7 mu, the minimum 0.7 mu and maximum 11.2 mu; and average tea land area per capita is 1.13 mu, the minimum 0.21 mu and maximum 3.33 mu. The land of family is possessed under the name of responsibility field (tea garden), family plot and grain ration field by rural collective. The land change in and out case is few. Other part is consisted of mountain forest land and bamboo forest land. Each household has contracted the mountain forest from collective, the minimum 1.2 mu and maximum 500 mu. ⑶ Living condition By the statistics, among 36 households there are 10 households with brick-concrete structure house (accounting for 30.6%); and 26 households with brick-timber structure (accounting for 69.4%). Living area per household is 109.5m2 and average room per household is 4.1. For fuel-use aspect, 35 households use firewood (accounting for 97.2%); 28 households use liquid gas (accounting for 77.7%); 2 households use coal (accounting for 5.6%); and usually, firewood as major fuel, only use liquid gas in busy seasons and festival time. 15 households have the cable television (accounting for 41.7%); 33 households have programmed control telephone (accounting for 91.6%), and a lot of family have one or more mobile telephone. See Table 2-7 Summary of Living Condition of Households Surveyed in Project Affected Area for details.

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Summary of Living Condition of Households Surveyed in Project Affected Area Table 2-7 Result Jingxian（22 Huangshan area （14 Index Unit Total （36 households） households） households） Quantity Mean Quantity Mean Quantity Mean 1. House structure 10 8 2 (1) brick-concrete 26 14 12 (2) brick-wood 3942 123.19 2369 107.68 1573 157.30 2. Living area m2 147 4.59 88 4.00 59 5.90 3. Number of living room room 4. Fuel 28 18 10 (1) liquid gas yes/no 2 0 2 (2) coal yes/no 35 22 13 (3)firewood yes/no 15 12 3 5.Indoor wired TV yes/no 36 22 14 6.Lighting power yes/no 33 22 11 7. Telephone yes/no 11 5 6 Mobile telephone yes/no

⑷Production and operation way The operation way of family is mainly for land contract, accounting for 91.6%, individual operation is accounting for 5.6 %, and rest 2.8% of families is in other operation ways. From the first row of operation classification, the households for grain planting mainly is accounting for 58.3%, for tea planting is accounting for 27.8%, for other planting (vegetable etc.) is accounting for 5.6%, and for engaging in traffic transportation, building, commercial as well as service trade is accounting for 8.3%. The survey team discovers that actually, a family often carries out the operation of various types, in the time when some family members are engaged in field production mainly to plant paddy, wheat, rape, cotton as well as various vegetable and fruits, they also breed pigs, chicken or cattle, and some family member engage in non-agricultural production mainly by running trade business at local or other places. The output and destination of 3 main agricultural products of families surveyed is as the following: Output and destination of 3 main agricultural products Table 2-8 Unit：ton or piece Type Output Self-use Sale Destination of sale Grain （paddy） 62.6 39.7 22.9 Same county or town Vegetable, melon, and 6 0.7 5.3 Same county or town market fruit Breeding （pig） 24 18 6 Same town and village

40 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang）

⑸ Employment way of labor force There are 105 persons at working age of 18~59 years old, in which 96 persons are engaging in social working (accounting for 91.4%), 42 engaging in agriculture, 11 engaging in non-agriculture, 37 engaging in outgoing (in which 23 persons for outgoing work all the year round, accounting for 62.2 %), 1 cadres, 1 army-man, 1 in towns enterprise, 2 doctors and 1 teacher. There are 9 persons not engaging in social work (accounting for 8.6%), of which 1 person loses labor ability without work, 5 persons do housework, 1 person after graduation from middle school not engage farming or the outgoing work, and 2 are students. The non-agriculture people in project affected area are mainly engaging in catering and other service trades. From analysis of profession characteristic, now the service trade and construction business in large cities has strong ability to absorb labor forces, so that the resetters are engaging in construction business and service profession mainly. Therefore, the construction of this project will bring plenty of employment opportunity and the customer source for meal trading service, building and transportaion service, and will also bring new income source for local resettlers. Employment condition Table 2-9 Unit：Person Description Number % In which：female In which：female 1．For agriculture at home 42 40 19 23 2．For non-agriculture at home 11 10.5 6 5 3．For outgoing work 37 35.2 16 21 4．Cadre 1 1.0 1 5．Army-man 1 1.0 1 6．Doctor 2 1.9 2 7． Town enterprise 1 1.0 1 8. Teacher 1 1.0 1 9 ． Lose labor ability without 1 1.0 1 occupation 10．Do housework 5 4.8 5 11． Other labors 1 1.0 1 12．Student 2 1.9 1 2 Total 105 100 49 57

⑹ Agricultural production time and non-agricultural production time From the questionnaire, 12.7% persons are engaging in agricultural production less than one month per year, 35.9% persons are engaging in agricultural production about 4 months per year, and 51.4% persons are engaging in agricultural production over 180 days. Averagely, male labors are engaging in agriculture for 151 days approximately and 139 days for non-agriculture work, and female labors are engaging in agriculture for 167 days approximately and 125 days for non-agriculture work. For the distribution of labor time, a quite time of them is used to engage in outgoing work, especially that the engaging in outgoing work and trade business becomes the important

41 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） composition of family economy and life. Among 36 households, 22 families had one person at least for outgoing work at last year. Short time for outgoing work is 70 days and longest time is 324 days, meanly 207 days. The main place of outgoing work is at developed area of Beijing, Shanghai, and provinces of Zhejiang, Guangdong and Jiangsu. The outgoing work is in building, garments processing, decoration, transport service, meal trade, household management, housekeeper, etc.. ⑺ Family income The family income had been divided into 10 types in the questionnaire: planting income, forest or domestic breeding income, industrial income, building income, trade and service income, transportation service income, outgoing work income, wages income and other incomes. The basic condition of income of investigated family is listed in Table 2 - 10: Summary of income of family Table 2-10 Unit：Yuan Description Min. Max. Mean 1．Planting income 18000 5687 2．Forest income 15000 472 3．Domestic breeding income 5200 250 4．Industrial income 5．Building income 25000 1300 6．Trade and service income 10000 639 7．Transportation service income 25000 1083 8．Outgoing work income 27000 4889 9．Wages income 16000 781 10．Other incomes 25000 3414 11．Total 3200 40500 18515 12．Cost of family operation 750 23000 4303 13．Pure income after reducing cost of family 2700 35000 14212 operation 14．Pure income per capita in family 1330 8167 3198

From the Table 2 – 10, we can find out that the minimum total income is 3200 Yuan, highest 40500 Yuan, average income 18515 Yuan. After deducting the cost of family operation (productivity regular asset, other productivity expense, etc.), the average pure income per household is 14212 Yuan, minimum total pure income 2700Yuan and highest 35000 Yuan. The pure income per capita of family is 3198 Yuan, higher than the mean level of 3158 Yuan and 3157 Yuan of rural residents of Xuancheng city and Huangshan city in 2005. The average pure income per capita is higher than that of two cities because that the more labors in the project effected area engage in outgoing work, up to 37 persons and 1.03 persons per household, max. 4 persons in a family, so that income from outgoing work is accounting for 26.4% of total family economic income, additionally partial households consider to adjust the agricultural structure and have various operation by taking advantage of regional resource characteristic and region, e.g. partial households in Taohuatan village of Taohuatan town in Jingxian county planting mulberry in the paddy for raising silkworm, and Yuhe village of

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Gantang town in Huangshan area, under prerequisite of guaranteeing the grain ration basically, developing vegetable planting to raise the agricultural output value and increasing income. From the income structure of surveyed households, the average agricultural income per household is 6409 Yuan, accounting for 34.6% of the total, of which the planting income is 5687 Yuan (accounting for 88.7%), which is the main agricultural income source. The non-planting income is 12106 Yuan, accounting for 65.4%. The income from planting is ranked in the first place; the income of outgoing work is in second place, with family average income 4889 Yuan (accounting for 26.4%); the income from others is in the 3rd position (accounting for 13.9%); from the construction industry is in the 4th position (accounting for 7.0%); and from the transportation is in the 5th ( accounting for 5.8%). In general speaking, though the agriculture is still the main operation of family, the proportion of agricultural income in family is reducing step by step, the agricultural income in quite of households is not the main income source. By survey, it shows that quite of households transformed their contracted land to other persons. According to the statistics of economic income and family operation cost, by the end of 2005, the pure income per capita is 3198 Yuan, in Jingxian is 3083 Yuan and Huangshan 3347 Yuan, and the highest in sample households 8167 Yuan and minimum 1330 Yuan. The distribution of pure income per capita is: I〈 1500 Yuan of 3 households, accounting for 8.33%, average pure income per capita in the group 1331 Yuan； 1500〈 I〈 2000 Yuan of 3 households, accounting for 8.33%, average pure income per capita in the group 1984 Yuan； 2000〈 I〈 2500 Yuan of 6 households, accounting for 16.67 %, average pure income per capita in the group 2283 Yuan； 2500〈 I〈 3000 Yuan of 6 households, accounting for 16.67%, average pure income per capita in the group 2798 Yuan ； 3000〈 I〈 4000 Yuan of 9 households, accounting for 25.00%, average pure income per capita in the group 3306 Yuan； 4000〈 I〈 5000 Yuan o of 6 households, accounting for 16.67%, average pure income per capita in the group 4521 Yuan； I 〉 5000 Yuan of 3 households, accounting for 8.33%, average pure income per capita in the group 7806 Yuan；

43 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang）

25.00% 25.00%

20.00% 16.67% 16.67% 16.67%

15.00%

8.33% 8.33% 10.00% 8.33%

5.00%

0.00% 0 0 0 下 0 0 0 00 00 上 0 5 0 0 以 2 2 3 4 50 以 0 0 0 ～ 0 5 0 0～ 0～ 0～ ～ 0 1 0 0 0 5 5 0 50 00 00 1 2 2 3 4

Fig. 2-1 Distribution of pure income per capita of family From the family pure income per capita: the income per capita of Huangshan is the highest, 3347 Yuan, and is 264 Yuan more 3083 Yuan in Jingxian, this is mainly because of different regional ecomical foundation of two counties. The area in Huangshan with highway passing through is the combination area between urban and rural, with better infrastructure condition and economic foundation as well as regional advantage, and the local farmers have more opportunities in employment, engaging in outgoing work and business. But the area in Jingxian with highway passing through is the remote mountain area, the economic income relies on the traditional agriculture planting mainly, and farmers have the production and operation pattern of self-producing and self-sale. In recent years, taking advantage of more project constructed in Huangshan Scentic Spot, most labors have more opportunities to engage in work at near place. See Table 2-11 Summary of Income of Surveyed Families for details.

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Summary of Income of Surveyed Families Table 2-11 Income per capita County Index Under Over （ ） 1500~200 2000~250 2500~300 3000~400 4000~500 district 1500 5000 0 Yuan 0 Yuan 0 Yuan 0 Yuan 0 Yuan Yuan Yuan Whole 3 3 6 6 9 6 3 Sample households Jingxian 1 1 3 5 7 5 (household) Huangshan 2 2 3 1 2 1 3 area Whole 8.33% 8.33% 16.67% 16.67% 25.00% 16.67% 8.33% Percentage of each group Jingxian 2.78% 2.78% 8.33% 13.89% 19.44% 13.89% against sample Huangshan 5.56% 5.56% 8.33% 2.78% 5.56% 2.78% 8.33% households area

Whole 16 18 28 29 30 26 13 Family Jingxian 10 6 14 25 23 20 member per Huangshan household 6 12 14 4 7 6 13 area Whole 10 7 20 18 21 15 10 Labor force Jingxian 6 2 12 14 17 10 per household Huangshan 4 5 8 4 4 5 10 area Whole 1.60 2.57 1.40 1.61 1.43 1.73 1.30

Population Jingxian 1.67 3.00 1.17 1.79 1.35 2.00 born per labor Huangshan 1.50 2.40 1.75 1.00 1.75 1.20 1.30 area Whole 1828 2377 3164 3638 4681 5962 8077 Total income Jingxian 705 2283 3321 3700 4583 5725 per capita Huangshan 1925 2423 3007 3250 5000 6750 8077 area Whole 882 1549 1283 1171 1613 1911 3297 Expenditure per capita Jingxian 705 1783 1335 1138 1558 1694 Huangshan 988 1432 1232 1375 1794 2633 3297 area ⑻ Family expenditures The questionnaire has inquired following family expenses mainly: annual operation expense, food expense, clothing purchase expense, educational expense, medical and health protection expense, traffic expense, entertainment expense, other living expense, etc.. The minimum expense is 4220 Yuan, the highest 29800 Yuan and average expense per household 11935 Yuan. Among the expenses of family, food expense and operational expense is main item, and the 3rd is educational expense. See Table 2-12 for the basic condition of family. From Table 2 –12, we can find out that educational expense has become one of major burdens of a family gradually. Additionally, according to the inquiry on-the-spot that the anti-risk ability of family is weak comparatively, if there is kids to be admitted to university or have serious illness, the savings of several years in home will be expended, even some have to carry debt. The survey team made an interview with villager Zhou Shufang in Dongkong

45 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） village of Longmen township in Huangshan area: There 6 members in the family, old couple, son, daughter-in-law, granddaughter and grandson. His son, granddaughter and grandson engage in outgoing work, the economic condition was better as compared with others in the village. Last year, his daughter-in-law got a serious illness, they have the debt of ten thousands Yuan after spending out the money reserved for building new houses, now his granddaughter has a part-time work in Huangshan area and also takes care on her mother for some times, and his son and grandson engage in outgoing work for paying a debt. The summary of expense of family surveyed is indicated in Table 2-12. Summary of Family Expense Table 2-12 Unit：Yuan Description Min. Max. Mean 1．Annual operation expense 14000 4303 2．Food expense 500 10800 3898 3．Clothing purchase expense 100 2800 639 4．Educational expense 13000 1143 5．Medical and health protection expense 100 15000 652 6．Traffic expense 150 3000 585 7．Living expense 100 1000 226 8．Water, power, telephone expense 180 3900 693 9．Other living expense 4800 304 10．Total expense 4220 29800 12443

⑼ Influence on economic income by land acquisition After the analysis of land acquisition, the land acquisition regards for 256 households, in which 217 households are only involved in the land acquisition (accounting for 84.8%), 23 households involved in both land acquisition and house relocation (accounting for 9.0%), and 16 households only involved in house relocation (accounting for 6.2%). By the survey on family income of 36 households, the mean income of planting is 5687 Yuan, which is mainly from the operation of contracted-farmland (garden). Therefore, the households will loss 33.8 mu farm land (garden), accounting for 14.6% of total. According to preliminary estimation, the agricultural income will be decreased 199000 Yuan, which is accounting for 4.5% of total income. 2.4.3 Women Position and Participation in Project Woman is the major benefit population by the project, therefore it is necessary to understand the special influence for women as well as the attitude of women for the project. The survey team carried out interview, questionnaire and collecting information, etc. to survey the women in the project affected area to participate in public affairs and family affairs. See Table 2-13 for details.

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Survey of women in the project affected area to participate in public affairs and family affairs Table 2-13 Unit：% Description By husband By wife By spouse By elder 1．Control of family property 49.6 11.3 34.6 4.5 2．Decision of production mode 51.2 13.7 29.9 5.2 3．Option of housing 37.4 0 62.6 0 4．Decision of labor division 45.7 5.1 45.3 3.9 5．Decision of purchase of high 35.2 5.4 59.4 0 grade merchandise 6．Decision of kids to enter a 18.7 13.5 67.8 0 higher school 7．Guidance of child study 36.2 28.3 31.8 3.7 8．Attending villagers meeting 63.7 13.3 18.5 4.5 9．Decision of investment or 57.9 0 42.1 0 loan 10 ． Attending neighbors’ 38.4 9.7 46.3 5.6 marriage and funeral activity

Up to the end of 2005, total population of Jingxian is 354100 persons, in which the female is 168400, accounting for 47.55%; and the total population of Huangshan is 161000 persons, in which the female is 77700, accounting for 48.37%. Along with quick development of economy in recent years, the women position in two counties (district) goes up year by year, and they have played more and more important role is participating in political affairs, economic construction and family matters. ——Participation of political affairs Two counties (district) have established and perfected the woman talent database, the proportion of woman cadres in people's government at different levels and rural grass-roots organization increases step by step, 1.1 percent increased as compared with that in 2000. According to statistical information, no matter among the reserved cadres in county, the National People's Congress, government, and the group of Chinese People's Political Consultative Conference or town (ship) party and administrative leading group, the female cadre rate is higher and increases year by year. Special in two committee groups at the village level, the female cadres increase obviously, about or up to 100%. Therefore, woman cadre proportion in two counties in participating state and social affair decision and management is high. ——Education The important program for a hundred years is education. The education level of woman has directly reflected the difference of overall national quality, and has special important meaning for woman to participate in political affairs, economic and social activities, training and education of next generation. Base on the data from related department of two counties, now, the illiterate middle aged women have cleared away basically, middle aged woman literacy rate 98%, and female adult literacy rate 85%, the entrance rate of primary school and middle school for female kids 100%, and children in kindergarten over 70%. The Women's Federations of two counties carried out the science and technology training for rural women

47 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） over 4000 time/person, and generally the rural women in two counties (district) accept the learning and training of practical technical and cultural knowledge. From the above-mentioned data, the women in the project affected area enjoy the basic right to get education, and educational level goes up year by year, the content of education is more extensive and more accords with the demand of female self development. ——Employment Woman enjoys same employment opportunity with male and gets same wage as doing same work. Base on the data from related departments of two counties, the women in employment in Jingshan are 87268 persons, 3202 persons increased as compared with that in 2001, the employment proportion of women is over 40%, and the women in employment in Huangshan are 33123 persons, 2321 persons increased as compared with that in 2001, the employment proportion of women is over 37%. From the analysis of employment for sex proportion, the proportion of female over 50% is centralized in hygiene, social guarantee and social welfare, education, finance, accommodation and meal, and service trade. Woman has played more and more important role in economic construction and social cause development and the profession engaged extensive, and get reasonable economic pay so that female position in family goes up gradually. In rural family, women mainly foster kids, carry out the planting and domestic works, men mainly undertake social intercourse and public activities, and proportion of outgoing work for a long term for men is great. From the accomplishment analysis of sample households by survey and random interviews, the family position of local woman is generally higher, they also have independent on economy, generally, the major event of family finalized by both parties. When man goes out for outgoing work, woman and old persons have undertaken the most farm work, in such family, the wife undertakes more heavy life pressure. Also there have young female as male to go out for outgoing work, when she is at suitable marriage age, she will go home to marry and foster kids, old persons take care of kids, and married women go out for outgoing work again. Usually, the female stays at home and not go out, with lest enthusiasm to participate in social activities. ——Sanitary and medical aspect Base on the data from related departments of two counties, the basic knowledge of popularity rate for family planning in married women exceeds 90%, rural childbirth rate in hospital over 96% (though the cost of hospital is expensive comparatively, but consideration for safety of mother and baby, the most pregnant woman still select childbirth in hospital), the medical inspection for women is over 60%, in the rural area over 50%, the healthy problem of local female getting more and more attention, and women having strong consciousness of sanitary and medical safety comparatively. But it is not ideal for medical inspection before marriage, less than 1%. Additionally, after talking with 5 females in the project affected area, we can discover: ⑴ The concept of male domination and female subordination in project affected area is not obvious, male and female position trend equal. This is mainly with woman in the economic position in family as well as educational level raising up. Parents pay attention for education to boy and girl equally, can complete 9-years duty education, and even borrow money for their children to go to school (not depending on sex) if there is the opportunity for

48 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） their children to enter into higher school. ⑵ The proportion of woman in outgoing work is up year by year. The concept of woman doing domestic work only is changed gradually, the outgoing work has not only to promote woman position in the family, also make rural females have opportunity to experience newborn life and held own future. ⑶ The most females in the project affected area know that the road will be built, and they urgently hope that the road will be constructed soon and express their positive support to the construction of road. 2.4.4 Poverty population and reason The economic development in the project affect district is the lower level in Anhui province. Though the people's government at different levels in the project area adopted measures of improving infrastructure, adjusting industrial structure, shifting and training labor force, supporting poverty with credit, and carrying out developable supporting poverty during "Tenth Five-year Plan", the distribution and population quantity of poverty has changed greatly, there still are a lot of poverty populations in the project effected area. By the end of 2005, the absolute poor population in Jingxian is 12700, poverty rate 3.6%, and the lower income population is 18800, the lower income rate 5.3%. The absolute poverty population in Huangshan area is 1400, poverty rate 0.9%, lower income population is 3500, the lower income rate of 2.2%. According "Tenth Five-year Plan" in two counties, it is planned to solve the problem of the basic need for poverty population within five year, and eliminate poverty basically. See Table 2 – 14 for details. Poverty Population in Project Affected Area Table 2-14 Lower income Absolute poverty Poverty rate Lower income rate Area population population （%） （%） (X104 person) (X104 person) Jingxian 1.27 3.6 1.88 5.3 Huangshan area 0.14 0.9 0.35 2.2 Whole province 178.67 3.5 372.13 7.3

The surveyed group, through collecting related poverty information and visiting, carried out the survey on poverty condition in the project affected area and analysis of poverty reason, and conditions are as follows: ⑴ The road in mountain area is poor and the infrastructure is lag behind, that restricts the local economic development. The most of road in mountain area, effected by topography, are constructed on mountain or brook side, with narrow road surface and poor road condition. During raining or flood season, there would have landslide and road would be destroyed. Now, two counties (district) have a lot of mountain villages without a highway, and the masses still shoulder something for production and living. ⑵ The traditional industry in the mountain area has not competition ability and lacks the new economic increasing point. Since reforming and open, the market economy is deepened continuously, but the output of traditional products of bamboo, wood, tea, charcoal and others in Jingxian and Huangshan area are restricted because of ecological environment

49 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） protection, which causes the local agricultural income to drop certainly. At the same time the masses in the mountain area have less consciousness to against market risk, they do not know about market condition and still are in passive position in market economy so that their small-scale agricultural byproduct is easily impacted. ⑶ The medical and education condition is poor, it is difficulty for households in the mountain area go to hospital and their children to go to school. Now, the medical sanitary facility in the mountain area is not perfected, some farmers have to subject disease without seeing a doctor when they fall ill. As a result, a slight illness develops into serious one, and serious illness makes the household be under the poverty line, and for most of households, poverty is caused by illness. It is also hard for students in the mountain area to enter a higher school, the reason is that the expense for studying in a senior school or above goes up year by year, the annual living and study expense over 4000 Yuan for a student in a senior school and over 8000 Yuan for a college student, which is heavy burden for a household in the mountain area with yearly income only 2000 Yuan. The condition is as that "A household becomes poverty if the family has one person studying in a school". In recent years, the ratio of becoming and returning poverty resulted from one studying in a school is rising. As mention above, the project construction should certainly slow down the poverty in the project affected area for following reasons: ⑴ The reconstruction highway will be helpful to accelerate the development of rich resources in the project affected area, promote the circulation of agricultural byproduct and adjustment of rural structure. At the same time, as long as flowing population increased, it will bring more information and business chance to those along the highway line and more employment opportunity so that the income of local farmers would be increased. ⑵ It would improve the investment environment in the project affected area, attract the outside investment, and promote the development of regional economy. ⑶ The change of idea is an important factor in the economic development and eliminating poverty. The support for getting rid off poverty and becoming rich from outside is not enough, the key issue is to rely on the poverty persons themselves. The improvement of traffic condition would have more information from outside, which will open vision and bring knowledge for the local people so that the consciousness and idea of local cadres and farmers would be changed and eventually purpose of supporting poor would be realized. 2.4.5 No Minority Problem in Surveying Area After seeking literatures and inquiry on related departments, the survey team found that there is a few of minority nationalities of Man, Hui and She in Anhui province and their residences are centralized, but there is no record of minority in the project affected area. Through investigating in each villagers’ group on the spot, no the residential minority is discovered there. Therefore, there is no other residence spot (it means the community of natural village and administrative village) than the Han nationality in the project affected area. 2.4.6 Attitude and Expectation of Project Construction In order to know further the attitude and demand of residents along the line, the survey team made survey on official, residents (including male and female), individual business households of country(district), town(street) and village in the project affected area through

50 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） participating in meeting, group discussion, individual interview and questionnaire. Totally, 117 questionnaires are received. Through the survey, they have also made corresponding expectation for the construction of project while holding their support to the construction of project. 1.1.1.1. 2.4.6.1 Status of knowing the project By the survey, 100% people know the project. The project information is through various channels, in which the information of land acquisition is from the measurement persons, the construction information to related county departments and officials of towns from the government notice and newspaper, and information to others from neighbors, relatives and friends. See Table 2-15. Information channels to corresponding people Table 2-15 Channel Frequency （person） Order

1. From broadcasting or newspaper 33 2 2. From the government notice 21 3 3. From relatives and friends 5 5 4. From neighbors 11 4 5. From others (the measurement persons) 47 1

1.1.1.2. 2.4.7 Attitude to project construction Through the discussion, households visiting and social questionnaires, we know that the residents in project affected area support and welcome for the construction of project, and have known that it will have great promoting roles to reduce transportation cost, accelerate people and raw material and motor vehicle flowage, enlarge the market of agricultural products, raise door-to-door purchase price of agricultural products, speed up information spread and improvement medical services, offer employment opportunity, promote local development, and improve the link with periphery areas as well as attracting investment, but they required to have corresponding measures to solve negative influences to normal living and production of residents along the road and operation of individual business households due to land acquisition and house relocation. By the analysis of questionnaires, there have 39.3% villagers thinking that project construction can bring benefit to themselves, 52.1% thinking that project construction can benefit to their village, 5.2% thinking that project construction has no benefit personally or do not determine. The survey team discovers those thinking that project construction has no benefit personally, now they live at Gantang town, urban and rural connection area in Huangshan area and actually they have experienced fully the traffic convenience. They think that the utilization rate of this section is not high, the land resource hold by them is less, and existing structure would be damaged if the land is acquisitioned since adjustment of agricultural structure completed, therefore their enthusiasm is not height and they have rebellious mind.

51 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang）

1.1.1.3. 2.4.7.1 Attitude on land acquisition and resettlement By the analysis of questionnaires, most of residents (92.3%) would cooperate to the construction of road and obey the land acquisition and resettlement. At the same time those thinking that project construction has no benefit personally, now they would support the construction if the compensation is paid reasonable. From this, it shows that this project has extensive support foundation of the masses. As a whole, they have expressed higher satisfactory degree for housing condition at present, 91.1% persons satisfying housing condition, 5.4% not quite satisfying or not satisfying the housing condition, and 3.7% is indifferent for the housing condition. Among the persons willing to be relocated, 37.9% persons hope to give currency compensation, and 62.1% persons wish clearly to have house plot near the road and build house by themselves. 1.1.1.4. 2.4.7.2 Expectation for project construction Although the most residents in project affected area have expressed the attitude of positive support to project construction, but at the same time, they have also made following expectations for the project construction: ⑴ The road should be away from residence, not occupy or occupy the cultivated land as less as possible, and reduce impact on residents around. ⑵ Based on recent state and local policies and regulations and combining actual condition of in the project affected area, to negotiate and determine reasonable compensation and subsidy standard for land acquisition and relocation as well as the resettlement scheme. They hope basically that the house compensation can be enough for building the house with original level, and the compensation money can directly pay them by one time. ⑶ Under the prerequisite to satisfy related technical requirement or condition, the construction unit should use local construction material and transportation equipment as far as possible, and absorbs more local labor forces to attend construction. ⑷ The construction safety and environment protection shall be reinforced during the construction so as to avoid disturbance and influence on normal production and living. Strict measures shall be worked out to guarantee to use construction equipment safely and prevent excessive noise and rolling farmland and trees; the temporary shortcut shall be constructed to guarantee daily trip; the caution signs shall be installed near schools and shops to guarantee trip safety; and the irrigation and drainage system shall be resumed timely to avoid construction pollution to surface water source. 1.1.1.5. 2.4.7.3 Expressing mode of comments on land acquisition and relocation The villagers express that they will express opinions for compensation way and compensation standard for the land acquisition and house relocation through formal and informal way. Mainly, there are 7 ways, the main way is to find relative government department personally to solve the problem, accounting for 33.8%, secondly is to joint with other people to find relevant government department to solve the problem, accounting for 24.6%; and appeal to the higher authorities for help with other persons is accounting for 21.5%. See Table 2-15 for details:

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Summary of expressing mode of comments on land acquisition and relocation Table 2-15 Frequency Description Percentage （%） （person ） 1.Tolerating 4 6.2 2. Appeal to the higher authorities for help personally 5 7.7 3. Find relative government department personally to solve the problem 22 33.8 4. Through judicial channel to solve problem personally 3 4.6 5. Appeal to the higher authorities for help with other persons 16 24.6 6. Joint with other people to find relevant government department 14 21.5 7. Not agree to demolish housing 1 1.5 Total 65 100

2.5 Main Conclusions Through the analysis of construction influence, main conclusions are as followings: ⑴The project construction would be helpful to drive the fast development of whole provincial travel trade with "Two Mountains and One Lake" as the leading position, and realize the leap progress of a province with strong traveling economy from a province only with travel resources. At the same time, after project construction, it would also be helpful to promote the development of related industries such as catering and service trade along the route and the circulation and sales of agricultural byproduct in the project affected area, and drive the overall development of economy and society in the area. ⑵ Generally, the construction of this project has extensive support foundation of the masses. The construction of project will bring welfare to the publics and economic development opportunity, through effective enforcement of the resettlement acting plan, it will also give chance to improve production condition and living environment, raise the life quality of villagers affected by land acquisition and house relocation. ⑶ The villagers have expressed maximum solicitude for the compensation of land acquisition and house relocation, and wish the compensation program and policy to be open and transparent. For house relocation compensation, villagers wish to compensate its loss and at least can be able to build the house with original standard. At the same time, villagers hope to have house plot near the road to facilitate the commercial and service trade activities. ⑷ The residents in project affected area wish the policy-maker to pay attention to the environment protection during the project construction as well as traffic safety problem after completion of project. ⑸ The villagers will express the opinion for project construction through various ways, mainly find relevant government administrative departments personally to solve the problem, and secondly unite other persons to find relevant government department and appeal for help.

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3. Inventory for Impact by Land Acquisition During Aug. 2006, under the participation and coordination of government at different levels, administrative village and villagers’ group cadres and resettlers, relative technical people from Anhui Provincial Road Investigation and Design Institute made survey on inventory index for affecting population, house and affiliated facility, land, special facility for more than 20 days. See Table 3-1 for details of each inventory index. Summary of inventory index for Anhui road project III （S322 Taohuatan~Gantang section） Table 3-1 Population statistics For house For land Housing Rural Land In which: County Township relocation acquisition demolis population acquisition farmland （district） （town） House Popula House Popula hing needs for 2 (mu) (mu) holds tion holds tion resettlemen (m ) (house (perso (house (perso t(person) hold) n) hold ) n) Total 16 58 126 486 58 3268.92 173.10 109.9 Jingxian Taohuatan 16 58 126 486 58 3268.92 173.10 109.9 Total 23 92 91 348 143 4795.88 523.27 46.79 Huangshan Longmen 21 85 49 182 111 4404.70 460.85 8.20 area Gantang 2 7 42 166 32 391.18 62.69 38.59 Total 39 150 217 834 201 8064.80 696.37 156.69

3.1 Determination of Scope of Land Acquisition The scope for land acquisition of this project is mainly including permanent land occupation and temporary land occupation. 3.1.1 Permanent Land Acquisition and Impact Scope The permanent land acquisition for the project includes road surface, roadbed, bridge and culvert, barrel-drain, intersect works, security facilities and traffic maintenance facilities. All the land requisition areas and the areas where the resident’s living and production condition will be severely affected by the highway construction and can’t be rehabilitated will be included in the project permanent land acquisition scope. The scope of permanent land acquisition area is based on the Project Feasibility Study Report prepared by Anhui Provincial Road Investigation and Design Institute, determined by field survey and be partly adjusted along with the progress of design. The project impact scope will be determined with resettlement plan accomplishment. Based on the survey analysis, because of small portion of land acquisition the people concerned with land acquisition can be arranged within the villager’ group, therefore it is not to consider resettlement problem in the project affected area temporarily. 3.1.2 Temporary Land Occupation for Construction The temporary land occupation includes quarry and sandpit, material mixing plant, borrow area, living and production area during construction and temporary access road for construction.

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3.2 Impact Inventory Survey Method In order to find out the losses by land acquisition and housing demolition as well as to offer realiable basis for compilation of resettlement acting plan and compensation budget, the inventory survey objects are: land acquisition, affected population by land acquisition and house demolition, demolished houses and auxiliaries, individual business households, scattered tree, institutions and enterprise, special facilities, etc.. The main survey methods are described as follows: A Population survey: The population affected by the project was divided into three categories, those affected only by land acquisition, those affected only by house demolition and relocation, and those affected by both land acquisition and housing relocation. Based on the actual population of survey time, all affected persons were registered including their nationality, age, educational level and employment condition. Survey was made from household to household, and the statistics were collected from village to village. B Land survey: According to the 1/2000 relief map and landmark determinded by land department, the land survey data is recorded according to the current ownership, land types and the actual cultivating condition. C House and auxiliary survey: During survey, the houses to be demolished is measured at site one by one and recorded with the house right certificate and house structure, and its affiliated facility is registered one by one. D Individual business households survey: The individual business households are recorded one by one with staff number, anuual turnover and profit. E Institutions and enterprise survey: According to the requirement of “Survey working outline”, carry out overall survey of institutions and enterprises. F Scatter tree survey: The scatter trees in the project affected area was computed at site by its type (fruit tree and other type of trees) and size. G Special facilities survey: The power supply and telecommunication poles were checked at site based on the existing data of responsible department. 3.3 Main Inventory Results 3.3.1 Permanent Land Acquisition The total land acquisition area is 696.37mu, in which farmland area is 156.69mu (accounting for 22.5%)，garden plot 109.04mu (accounting for 15.7%), fish pond 4.86mu (accounting for 0.7%), woodland 371.63mu (accounting for 53.4%), construction land use area 13.85 mu (accounting for 2.0%), and other unsued land 40.3mu (accounting for 5.7%). See Table 3-2 for details.

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Summary of All Kinds of Land Acquisitioned Table 3-2 Unit：mu Unused Farmland Garden Forest land Construct land County Town Villager Fish Total ion Wild （district） （ship） committee Paddy Tea pond Water Subtotal Dry field Sub-total Sub-total Bamboo Wood Shrub Nursery land Sub-total glass field garden surface ground Sub-total 173.10 109.90 93.11 16.79 19.60 19.60 34.06 5.12 28.25 0.69 2.75 6.79 2.12 4.67 Taohuatan Taohuata 43.20 36.14 29.91 6.23 1.08 1.08 0.76 0.76 1.93 3.29 3.29 village Jingxian n Lianhong 129.90 73.76 63.20 10.56 18.52 18.52 33.30 5.12 27.49 0.69 0.82 3.50 2.12 1.38 village Total in Jingxian 173.10 109.90 93.11 16.79 19.60 19.60 34.06 5.12 28.25 0.69 2.75 6.79 2.12 4.67 Sub-total 460.58 8.20 0.00 8.20 81.68 81.68 329.09 28.90 164.20 134.73 1.26 4.86 7.63 29.12 0.00 29.12 Lundu 297.59 7.36 7.36 57.51 57.51 220.84 26.48 59.21 133.89 1.26 1.96 9.92 9.92 village Longmen Dongkeng 86.60 0.00 23.48 23.48 59.97 1.97 58.00 1.38 1.77 1.77 village Yuchun 76.39 0.84 0.84 0.69 0.69 48.28 0.45 46.99 0.84 4.86 4.29 17.43 17.43 Huangshan village area Sub-total 62.69 38.59 35.14 3.45 7.76 7.76 8.48 1.60 0.61 3.58 2.69 3.47 4.39 4.39 Majia Gantang 38.79 20.75 19.15 1.60 6.08 6.08 8.48 1.60 0.61 3.58 2.69 0.14 3.34 3.34 village Yuhe village 23.90 17.84 15.99 1.85 1.68 1.68 0.00 3.33 1.05 1.05 Total in Huangshan 523.27 46.79 35.14 11.65 89.44 89.44 337.57 30.50 164.81 138.31 3.95 4.86 11.10 33.51 33.51 area Total in project 696.37 156.69 128.25 28.44 109.04 109.04 371.63 30.50 169.93 166.56 4.64 4.86 13.85 40.30 2.12 38.18

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3.3.2 Temporary Land Use The temporary land use means land borrowed during the construction period, including sand and aggregates deposit, earth borrow area, material mixing plant, spoil area, production and living area as well as temporary access etc., 142.88 mu in total, of which the cultivated land is 51.54mu and forest land 91.34mu with two years of use period. In order to decrease the impact on environment and residents around from temporary land use as borrow area, the design unit has considered the selection of location of temporary land, construction way and recovery after completion of project. For example, to select the earth borrow area at the coombe which would be filled with earth by natural flow, to dig the pit deeply as a water pond to meet the requirement of irrigation; or to level the land combining with house plot leveling in the host area; preserve the mellow soil on surface and cover it again by construction unit when the project is completed. The project office shall identify the temporary land use way, use time, quality of farmland recovery being at a level before the construction, and compensation standard for the temporary land occupation in the construction contract. See Table 3-3 for survey of classification of temporary land. Summary of temporary land Table 3-3 County Town Administrati Cultivated land Total Wood land （district） （ship） ve village Sub-total Paddy field Dry land Sub-total 51.32 6.07 5.59 0.48 45.25 Jingxian Taohuatan Taohuatan 31.66 4.91 4.43 0.48 26.75 Lianhong 19.66 1.16 1.16 18.5 Sub-total 74.46 44.37 44.37 30.09 Lundu 51.65 29.06 29.06 22.59 Longmen Huangshan Dongkeng 11.25 3.75 3.75 7.5 area Yuchun 11.56 11.56 11.56 Sub-total 17.1 1.1 1.1 16 Gantang Majia 17.1 1.1 1.1 16 Total 142.88 51.54 5.59 45.95 91.34

3.3.3 Project Affected Population The project affected population contains two concepts, one is the population directly affected by the project as for land acquisition and house relocation; Another is the rural population needing for resettlement based on the theoretical calculation of “National land law”, and this population data is the computation result based on the village and collective ownership of rural land in China, which is only for the analysis of land acquisition impact for the resettlement work. By the survey at site, the land acquisition and house relocation will impact actually 256 households with 984 persons, in which only involved in the land acquisition is 217 households with 834 persons, only involved in house relocation 23 households with 91 persons, and involved both in the land acquisition and house relocation 16 households with 59 persons.

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According to the stipulation of Article 47 of the state “Land law”, the land acquisition area is divided by land area per capita in village and group before the land acquisition, so that this project shall arrange 201 rural populations, i.e.:

land acquisition area rural persons need for resettlement =∑------total land area/total rural person

land acquisition area = ∑------land area per capita Based on computation of each group, see Table 3-4 for project affected persons of each type, and see Attachment II for project affected population. Summary of project affected population (S322 Taohuatan –Gantang) Table 3-4 Total Of which Rural Both for land person Only for land Only for house County Administrati acquisition and needs Town（ship） House- acquisition relocation （district） ve village person house relocation resettle-m holds Househ Househ Househ ent person person person olds olds olds (person) Taohuatan 40 149 32 123 7 23 1 3 32

Taohuatan Lianhong 102 395 94 363 2 6 6 26 26 Jingxian Total in 142 544 126 486 9 29 7 29 58 township Total in county 142 544 126 486 9 29 7 29 58 Lundu 48 184 33 124 7 34 8 26 86 Dongkeng 21 78 15 53 5 21 1 4 24 Longmen Yuchun 1 5 1 5 1 Total in 70 267 49 182 12 55 9 30 111 Huangshan town area Majia 24 90 23 87 1 3 18

Gantang Yuhe 20 83 19 79 1 4 14 Total in 44 173 42 166 2 7 32 township Total in area 114 440 91 348 14 62 9 30 143 Total in project 256 984 217 834 23 91 16 59 201

3.3.4 Minority Population By the field survey, there is no minority population in project affected area. 3.3.5 Relocation of House and its Attachments The housing will be relocated for 8064.80m2. By the classification of house structure, brick and concrete house is 1070.10m2 (accounting for 13.3%)；brick and wood house 6219.50m2 (accounting for 77.1%); earth-wood house 723.70m2 (accounting for 9.0%); and simple house 51.5m2 (accounting for 0.6%). See Table 3-5 Statistics for relocation of housing and its attachments.

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Statistics for relocation of housing and its attachments Table 3-5 Housing （m2） Attachment County Administrati Sty and Cement Town（ship） Simple shed Brick fence Telephone （district） ve village Sub-total Brick- concret Brick- wood Earth- wood Simple house lavatory ground Well (ea.) （m2） （m2） （set） （m2） （m2） Sub-total 3268.92 929.90 2173.92 165.10 69.80 0.00 561.90 135.00 8 Taohuatan Taohuatan 2115.22 929.90 1103.52 81.80 27.50 116.80 135.00 4 Jingxian Lianhong 1153.70 1070.40 83.30 42.30 445.10 4 Total in county 3268.92 929.90 2173.92 165.10 69.80 0.00 561.90 135.00 8 Sub-total 4404.70 140.20 3654.40 558.60 51.50 210.80 345.00 30.40 15 7 Lundu 3663.70 140.20 2913.40 558.60 51.50 110.80 6.30 30.40 8 Longmen Dongkeng 717.00 717.00 100.00 7 7

Huangshan Yuchun 24.00 24.00 338.70 area Sub-total 391.18 391.18 50.00 390.00 Majia 102.10 102.10 25.50 Yuhe 289.08 289.08 24.50 390.00 Total in Huangshan area 4795.88 140.20 4045.58 558.60 51.50 260.80 345.00 420.40 15 7 Total in area 8064.80 1070.10 6219.50 723.70 51.50 330.60 345.00 982.30 135.00 23 7

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3.3.6 Individual Business Households By the statistic of survey, the projects construction will not involve any individual business households. 3.3.7 Affected Enterprises By the statistic of survey, the projects construction will not involve any enterprise. 3.3.8 Scattered Trees During the inventory survey, all trees distributed within the land use scope for the road are recorded based on tree type, size and ownership. According to the statistics, this project needs to fell 243206 trees totally, in which fruit tree is 20, and woods 243186. In addition, the statistic of relocation tombs are carried out, and totaling 58 tombs should be relocated. See Table 3-7 Statistics for Relocated Trees and Tombs . Statistics for Relocated Trees and Tombs Table 3-6 Scattered wood and fruit tree（ea.） Tomb County Town Administrative （ea.） Wood Fruit trees （district） （ship） village Total Sub-total ≤10cm >10cm Sub-total 7146 7141 4533 2608 5 46 Taohuatan Taohuatan 229 224 140 84 5 Jingxian Lianhong 6917 6917 4393 2524 46 Total in county 7146 7141 4533 2608 5 46 Sub-total 235106 235106 103952 131154 12 Lundu 92566 92566 7740315163 2 Longmen Dongkeng 77199 77199 7733 69466 10 Huangshan Yuchun 65341 65341 1881646525 area Sub-total 954 939 624 315 15 Gantang Majia 954 939 624 315 15 Total in Huangshan area 236060 236045 104576 131469 15 12 Total in Huangshan area 243206 243186 109109 134077 20 58

3.3.9 Special Facilities The affected special facilities are mainly of power and communication poles, see Table 3-7 Statistics of special facilities in details. Statistics of special facilities Table 3-7 Amount Description Unit Total Jingxian Huangshan area I. Communication facilities 1. Communication cable Pole/km 1.66 0.32 1.34 2. Communication optic cable Pole/km 10.64 4.88 5.76 II. Power facilities

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1. 35kV power line Pole/km 3.18 3.18 2.10kV power line Pole/km 16.47 9.55 6.92 3.220V/380V power line Pole/km 6.9 6.9 4. Transformer set 2 1 1

3.3.10 Affected Vulnerable Group Based on the survey on-the-spot, no vulnerable group is found in this stage for special help, but considering the vulnerable group resulted by possible natural calamity during the implementation period, therefore, the vulnerable group is calculated temporarily based on 20% of resettled households as the vulnerable group in this stage. The actual number and population of vulnerable group shall be decided based on the family member condition, labor employment status, family resource and the material grasped by local administration department. Once the affected family is confirmed for the vulnerable group, the project office will give special help, proper preferential and care, such as for house construction and distribution of resource.

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4. Policy Frameworks for Resettlement The preparation of RAP and implementation of resettlement for this project shall strictly carry out according to relevant requirements in Operational Manual-OP4.12. The implementation of resettlement shall strictly carry out according to compensation standards in RAP and must have approval of World Bank if there is any change during implementation, which shall be sumitted by special report by the construction unit. 4.1 Policy Basis The main laws and policies for the land acquisition and resettlement are as follows： (1) Land Administration Law of the People's Republic of China (which was amended in the 11th Meeting of the Standing Committee of the ninth National People' Congress on Aug. 28, 2004)； (2) Implementation Regulations of Land Administration Law of the People's Republic of China (Decree No. 256 of the State Council of the People's Republic of China)； (3) Protection Regulations of Farmland (Decree No. 257 of the State Council of the People's Republic of China)； (4) Temporary Regulations of Tax for Farmland Occupation of the People's Republic of China (No. 27 (1987)Notification of the State Council of the People's Republic of China)； (5) Implementation Regulations of Forest Law of the People's Republic of China(Decree No. 278 of the State Council of the People's Republic of China)； (6) Management Regulations of Village and Township Planning and Construction (Decree No. 116(1993) of the State Council of the People's Republic of China)； (7) Implementation Method of "Land Administration Law of the People's Republic of China" of Anhui Province (which was amended in the 18th Meeting of the Standing Committee of the ninth National People' Congress of Anhui Province on Sept. 22, 2000)； (8) Relative rules of “Regulations of Woodland Protection and Management of Anhui Province” (which was approved in the 17th Meeting of the Standing Committee of the ninth National People' Congress of Anhui Province on July 9, 2000)； (9) “Notice on Relative Policies of Woodland Compensations” Issued by the Material Price Bureau, Financial Department and Forest Department of Anhui Province （NO.[1995]58, Apr. 14th 1995）； (10) Notice on Farmland Occupation Tax by Road Construction Issued by the Financial Department of Anhui Province (11) Operational Directives OP.4.12, "Involuntary Resettlement" - World Bank 4.2 Relative Laws and Regulations 4.2.1 Relative Specifications of "Land Administration Law of the People's Republic of China" Article 10 Land owned by peasant collectives that belongs lawfully to peasant

62 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） collectives of a village shall be operated and managed by collective economic organizations of the village or by villagers’ committees; land already owned by different peasant collectives that belong to two or more different collective economic organizations in the village shall be operated and managed by the rural collective economic organizations in the village or by villagers’ teams; land already owned by peasant collectives of a township (town) shall be operated and managed by rural collective economic organizations of the township (town). Article 14 Land owned by peasant collectives shall be operated under a contract by members of the economic organizations of the peasant collectives for crop cultivation, forestry, animal husbandry of fishery. The duration of such contract in 30 years. The party that gives out a contract and the party that undertakes it shall sign a contract in which to stipulate the rights and obligations of both parties. A peasant who undertakes to operate a piece of land under a contract shall have the obligation to protect the land and rationally use it in conformity with the purposes of use provided for in the contract. The right of a peasant to operate land under a contract shall be protected by law. Within the duration of the contract for operation of land, any appropriate readjustment of the land between individual contractors shall be made with the agreement of at least two-thirds of the members of the villagers assembly or of the representatives of villagers and submitted to the township (town) people’s government and the agriculture administration department of the people’s government of the county for approval. Article 24 People’s governments at all levels shall exercise close supervision over the plans for land utilization and keep control over the total amount of land used for construction. Article 31 The State protects cultivated land and strictly controls conversion of cultivated land to non-cultivated land. The State applies the system of compensation for use of cultivated land for other purposes. The principle of “reclaiming the same amount of land as is used” shall be applied to any unit that, with approval, uses cultivated land for construction of non-agriculture projects, that is, the unit shall be responsible for reclaiming the same amount and quality of the cultivated land it uses. If conditions for such reclamation do not exist or if the reclaimed land fails to meet the requirements, the unit shall pay expenses for reclamation in accordance with the regulations set by people’s governments of provinces, autonomous regions and municipalities directly under the Central Government and the money shall exclusively be used for reclamation. People’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall formulate plans for land reclamation, see that the unit that uses cultivated land reclaims land according to plan or arrange reclamation according to plan, and conduct inspection before acceptance. Article 42 Land users that cause damage to land as a result of digging, subsiding or crumbling under heavy weight shall be responsible for re-cultivating the land in accordance with the relevant regulations of the State. Where conditions do not permit such re-cultivation or the land re-cultivated does not meet the requirements, the user shall pay charges for re-cultivation, which shall exclusively be used for the purpose, The land re-cultivated shall first be used for agriculture. Article 47 Land requisitioned shall be compensated for on the basis of its original purpose of use. Compensation for requisitioned cultivated land shall include compensation for land,

63 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） resettlement subsidies and attachments and young crops on the requisitioned land. Compensation for requisition of cultivated land shall be six to ten times the average annual output value of the requisitioned land for three years preceding such requisition. Resettlement subsidies for requisition of cultivated land shall be calculated according to the agricultural population needing to be resettled. The agricultural population needing to be resettled shall be calculated by dividing the amount of requisitioned cultivated land by the average amount of the original cultivated land per capita of the unit the land of which is requisitioned. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four to six times the average annual output value of the requisitioned cultivated land for three years preceding such requisition. However, the highest resettlement subsidies for each hectare of the requisitioned cultivated land shall not exceed fifteen times its average annual output value for the three years preceding such requisition. Standards of land compensation and resettlement subsidies for requisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for requisition of cultivated land. Standards for compensation for attachments and young crops on the requisitioned land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government. For requisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State. If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of the Article are still insufficient to help the peasants needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the average annual output value of the requisitioned land for the three years preceding such requisition. The State Council may, in light of the level of social and economic development and under special circumstances, raise the standards of land compensation and resettlement subsidies for requisition of cultivated land. Article 48 Once a plan for compensation and resettlement subsidies for requisition land is decided on, the local people’s government concerned shall make is known to the general public and solicit comments and suggestions from the collective economic organizations, the land of which is requisitioned, and the peasants. Article 49 The rural collective economic organization, the land of which is requisitioned, shall accept supervision by making known to its members the income and expenses of the compensation received for land requisition. The compensation and other charges paid to the unit for its land requisitioned is forbidden to be embezzled or misappropriated. Article 50 Local people’s governments at all levels shall support the rural collective economic organizations, the land of which is requisitioned, and the peasants in their efforts to engage in development or business operation or to start enterprises. Article 54 A construction unit that to use State-owned land shall get it by such means

64 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） of compensation as assignment. However, land to be used for the following purposes may be allocated with the approval of a people’s government at or above the county level: (1) For State organs or military purposes; (2) For urban infrastructure projects or public welfare undertakings; (3) For major energy, communications, water conservancy and other infrastructure projects supported by the State; and (4) Other purposes as provided for by laws or administrative regulations. Article 57 Where land owned by the State or by peasant collectives need to be used temporarily for construction of projects or for geologic prospecting, the matter shall be subject to approval by the land administration departments of people’s governments at or above the county level. However, if the land to be temporarily used in located in the area covered by urban planning, the matter shall be subject to agreement by the urban planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has the land-use right, enter into a contract for the temporary use of the land with the land administration department concerned, or the rural collective economic organization, or the villagers committee and pay compensation for it in accordance with the provisions of the contract. The temporary land user shall use the land for purposes stipulated in the contract for temporary use of the land and may not build permanent structures on it. Generally, the period for temporary use of land shall not exceed two years. Article 62 For villagers, one household shall have only one house site, the area of which may not exceed the standard set by provinces, autonomous regions and municipalities directly under the Central Government. Villagers shall build residences in keeping with the township (town) overall plan for land utilization and shall be encouraged to use their original house sites or idle lots in the village. Land to be used by villagers to build residences shall be subject to examination and verification by the township (town) people’s government. However, if land for agriculture is to be used for the purpose, the matter shall be subject to examination and approval in accordance with the provision of Article 44 of this Law. Approval for other house sites shall not be granted to villagers who have sold or leased their houses. 4.2.2 Relative Rules of "Temporary Bylaw of Farmland Possession Tax of the People's Republic of China" Article 2: The farmland called in this regulation means the land used for planting crops. The land to be occupied that was used for planting crops three years ago is also regarded as farmland. Article 3: The units or individuals who occupy the farmland for non-agricultural construction is the duty person for payment for land possession(hereinafter called as the taxpayer), shall pay the land possession tax according to stipulations of this regulation. Article 4: The land possession tax is computed with the actual area of land occupied by the taxpayer and the tax shall be collected by one time. Article 5: The land possession tax is stipulated as the following:

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1. The average land per capita within the county area(as the same hereinafter) is below 1mu(including 1mu), the land possession tax is 2-10 Yuan per square meter; 2. The average land per capita is between 1-2mu(including 2mu), the land possession tax is 1.6-8 Yuan per square meter; 3. The average land per capita is between 2-3mu(including 3mu), the land possession tax is 1.3-6.5 Yuan per square meter; 4. The average land per capita is above 3mu, the land possession tax is 1-5 Yuan per square meter; Article 9: The financial department shall levy the land possession tax. Land management department should inform in time the financial department after approval to the unit and individual. The unit or individual who got the approval to take over for use or occupy the land shall report to the financial department to pay taxes, presenting the authorized file from the land management department above county level. The land management department shall transfer the land according to the tax receipt or approval files. 4.2.3 Relative Rules of Implementation Method of "Land Administration Law of the People's Republic of China" of Anhui Province Article 18: The wasteland reclamation fee shall list into total investment of project. Article 23: The land use unit and individual shall be responsible for reclamation due to land damage by excavation, falling and rolling; If there is no condition for reclamation, the land reclamation fee shall be paid with 6-9 Yuan per square meter; If the reclamation is not met the requirement, the land reclamation fee shall be paid again with the standard above. The actual method for land reclamation shall be made by the provincial people’s government. Article 33: ┅ take over the land contracted with peasant, should handle land contract change procedure according to the law. If the land is taken over by the state, the land agricultural tax and rationed purchase tasks of relevant agricultural products shall be reduced according to the stipulations. Article 34: The compensation standard of other lands except farmland: (1) Land acquisition for fish pond, lotus pool, reed pond, clump and medicinal material field, etc. 6 times of mean output value of previous 3 years before land acquisition. (2) Land acquisition for orchard, tea fiedl and mulberry field etc. etc. 7 times of mean output value of previous 3 years before land acquisition. If there is no harvest, 6 times of mean output value of previous 3 years before land acquisition. (3) For land acquisition of open-up wasteland less than 3 years, 3-4 times of mean output value in same village (group) of previous 3 years before land acquisition; If it is over 3 years, the compensation shall follow the compensation of farmland. (4) Land acquisition for rural collective construction land, 3-4 times of mean output value in same village (group) of previous 3 years before land acquisition; (5) Land acquisition for other type of land, 2-3 times of mean output value in same village (group) of previous 3 years before land acquisition.

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Land acquisition for woodland, the compensation shall follow relative law and regulations. Article 35: Land acquisition for other lands except farmland, the resettlement subsidy standard for each rural person: (1) Land acquisition for rural land, 3-4 times of mean output value of previous 3 years; (2) Land acquisition for rural collective construction land, 2-3 times of mean output value in same village (group) of previous 3 years. Land acquisition for barren mountain and wasteland, do not pay to resettlement subsidy. Article 36: If the payment of land compensation cost and resettlement subsidy according to this stipulation can not keep original living level, the resettlement subsidy can be increased after approval by the provincical people's government. But, the sum of land compensation cost and resettlement subsidy can not exceed 30 time of mean output value of previous 3 years before land acquisition. Article 37: The compensation standard of young crops and attachments on land: (1) For young crops on land, it shall be compensated according to the output value of crop of same season; for perennial crop, it shall be compensated according to the annual output value; If there is no young crops, do not compensate for it. (2) For fish fly raising for more than 2 years, do not compensate for it; If it is less than 2 years, with compensation of 3-4 times of cost of fish fly. (3) For the compensation of timber forest, shelter-forest and special forest, 10%-20% of value of timber by the tree trunk average size larger than 20cm, and 60%-80% of value of timber by the tree trunk average size between 5-20cm. (4) The compensation of nursery plant, economic forest, firewood forest shall be 2 times of mean output value of previous 3 years before land acquisition; If it has no output, take 2 times of actual cost for afforestation, and 2 times of actual cost for afforestation for sapling forest and new afforestation according to actual investment. (5) The compensation standard of housing and other attachments shall be decided by the provincial people's government. Article 43: One rural household can only be possessed one house plot. For new house residence of rural village,the house plot area is: (1) At suburb, rural town and marketing area，each household shall be not over 160 square meters; (2) At plain area at north of Anhui province, each household shall be not over 220 square meters; (3) At mountain area and hill area, each household shall be not over 300 square meters;

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4.2.4 Relative Rules of “Regulations of Woodland Protection and Management of Anhui Province” Article 2: The woodland in this regulation includes arbor forest land with closing degree over 0.2, bamboo forest, bush forest land, thinning land, cutting-blank, fired land, young forestation, nursery land and suitable forest land planned by the county level people's government. Article 21: It is prohibit to plant agriculture crops on hillside fields more than 25 degree. If it is opened up to plant, it shall return for forest step by step. Local people's government shall work out the plan to return to the forest and encourage measures to return the forest, and organize the enforcement. Specific method shall be made by the provincical people's government. Article 33: The construction unit with authorized application shall pay compensation to the owner of forest land or user based on the following standard: (I) Woodland compensation (1) 4-6 times of output in main felling period of timber forest; (2) 6 times of mean annual output of previous 3 years for econic forest, nursery; If there is no output, 5 times of mean annual output of econic forest, nursery； (3) 2-3 times of compensation of timber forest for shelter-forest and special forest; (4) 70%-90% of compensation of timber forest for firewood forest and other forest; (II) Timber compensation (1) For the compensation of timber forest, shelter-forest and special forest, 10%-20% of value of timber by the tree trunk average size larger than 20cm, and 60%-80% of value of timber by the tree trunk average size between 5-20cm. (2) The compensation of nursery plant, economic forest, firewood forest shall be 2 times of mean output value of previous 3 years; If it has no output, take 2 times of actual cost for forestation; (3) 2 times of actual cost for forestation for sapling forest and new afforestation according to actual investment. (III) Resettlement susidy follows relative provincial regulations. Article 34: The fell-procedures shall be done when the land use unit needs to fell trees on the land approved or occupied according to the laws. The trees belong to the tree owner. Article 37: When construction project or other activity need to occupy temporarily woodland, it shall be approved by forest administrative responsible department above county level people's government and pay compensation according to the stipulation of this regulation. The unit or individual that occupies forest land temporarily must adopt the measures to protect the forest land to prevent slope slip, collapse and water and soil loss.

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The time of temporary occupation of land shall not exceed two years, and not build permanent buildings on the temporary forest land; After completion of land use period, the land use unit or individual must return forest land in time and resume forestry production condition. Article 38: The cost of forest vegetation recovery shall specially use for the afforestation of tree planting and recovery of forest vegetation. It is strictly forbidden any unit and individual to embezzle, occupy and hold back. 4.2.5 Relative Contents of “Implementation Method for Levying and Use Management of Forest Vegetation Recovery Cost in Anhui Province” Article 6: The levy standard is the cost for not less than the area occupied for survey, plan, design and afforestation for forest vegetation recovery. Specific levy standard is as follows: (1) 6 Yuan per square meter for timber forest, economic forest, firewood forest, nursery land and bamboo forest. (2) 4 Yuan per square meter for new forestation land (3) 10 Yuan per square meter for protective forest and special use forest land. (4) 3 Yuan per square meter for thining forest land, bush forest land. (5) 2 Yuan per square meter for suitable forest land, cutting-blank, fired land. The cost for forest land in city and city planning area shall be 2 times of standard above, and the forest vegetation recovery cost will not be paid temporarily during “11th –five-year” plan period for peasant occupies forest land to build residence according to assigned area. Article 10: The forest vegetation recovery cost shall be special fund for special purpose, by the end of the year the surplus of fund shall be turn to next year. The forest vegetation recovery cost shall be special used for afforestation of tree planting, resume forest vegetation organized by forestry responsible department including survey, plan and design, ground making, forestation, fostering, forest right registration and distribution of certificate, management and protection of forest resource, forest fire control and diseases prevention, and management for levy of forest vegetation recovery cost, which shall not be embezzled, moved or diverted. 4.2.6 Relative Comments of “Notice on Farmland Occupation Tax by Road Construction Issued by Financial Department of Anhui Province” Since start of levy farmland occupation tax, some county government and relevant department report to the provincial government to ask to exempt the farmland occupation tax for “No.313 national road, No.405 provincial road, and other roads, the report is transferred to our department to handle it. Now according to No.472 letter by Ministry of Finance(87), instructions from the Ministry of Finance and approval of leaders of provincial government, the notice on farmland occupation tax by road construction is as the following: 1. The land occupation by road construction does not belong to the tax-free scope by the provisional regulation for land occupation tax, it should levy taxes according to the rules.

69 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang）

Considering tense road construction fee, the lower limit of tax for land occupation for road construction is adopted, i.e. 1.6 Yuan per square meter, 1066 Yuan per mu, which shall be paid by land use unit. 2. The scope of low limit preferential tax standard is confined to roadbed and road bridge only, excluding housing construction and other construction by the traffic sectors. 3. This notice is put into effect when you get it. Do not reply again one by one for relative report. 4.2.7 Relative Specifications of Operational Policy--OP 4.12 of World Bank A. Policy Objectives (1) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. (2) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. (3) Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-resettlement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. B. Compensation and subsidy covered Persons affected in their production and living by land requisition are as follows: B. In order to solve production and living difficulty of resettlers due to loss of production material or other properties resulted by mandatory land acquisition for the project financed by the loan of the WB, the WB requests the borrower to compile a resettlement acting plan or resettlement policy frame, in which should have following contents: ⑴The resettlement plan or resettlement policy framework includes measures to ensure the resettlers to: ① notice the right of option and other rights for resettlement; ② undestand feasible scheme in technical and economic aspect, participate in negotiation and enjoy the chance of selection; ③ provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project. ⑵If the impacts include physical relocation, the resettlement plan or resettlement policy framework includes measures to ensure that the resettlers are: ① provided assistance (such as moving allowances) during relocation; and； ② provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at

70 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） least equivalent to the advantages of the old site. (3) Where necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also include measures to ensure that resettlers are: ① offered support after resettlement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; and ② provided with development assistance in addition to compensation measures described in paragraph, such as land preparation, credit facilities, training, or job opportunities. 4.3 Compensation Standard 4.3.1 Compensation Standard for Land Acquisition A. Compensation standard for permanent land acquisition and resettlement subsidy ⑴ Compensation standard for land acquisition Based on the relative rules of Implementation Method of "Land Administration Law of the People's Republic of China" of Anhui Province, the compensation standard for farmland is 6 times of mean output value of previous 3 years before the land acquisition; and the resettlement subsidy for each rural person is 4 times of mean output value of previous 3 years before the land acquisition. By the survey, the climate condition, planting pattern, option of crop kinds and annual output in each county(district) in the project affected area is identical basically. Therefore, according to the annual report of affected administrative villages and the result of social and economic survey in the project affected area, extracted the annual output of each crop from 2003 to 2005, and selected 4 sample villages with good farming condition among 2 counties(district) to compute the annual mean output for previous 3 years by taking consideration of planting charaters and habits, and the unit price of each crop is based on the market price in the first half year of 2006. After computation, the mean annual output of previous 3 years per mu paddy field is 1159.2 Yuan /mu, taking a full figure as 1160 Yuan/mu, see Table 4-1 for details. The cost of young crops is based on loss of one season of crop, i.e. 580 Yuan/mu. Accordingly, the compensation standard of farmland is 1160×（6+4）+580=12180 Yuan/mu. The mean annual output of previous 3 years per mu dry land is 879.7 Yuan /mu, taking a full figure as 880 Yuan/mu, see Table 4-2 for details. The cost of young crops is based on loss of one season of crop, i.e. 440 Yuan/mu. Accordingly, the compensation standard of farmland is 880×（6+4） +440=9240 Yuan/mu.

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Mean annual output for paddy field of sample villages for previous 3 years between 2003~2005 Table 4-1 Unit price Mean annual output between 2003 ～2005 （T） Ratio of Mean annual output value between 2003 ～2005 （Yuan） main and Crops (Yuan/ Taohuatan Lianhong Majia Yuhe Sub-total sideline Taohuatan Lianhong Majia Yuhe Sub-total kg) product Paddy 1.5 1122.67 825.67 177.50 418.33 2544.17 1:0.097 1847348 1358635 292076 688368 4186426 Wheat 1.38 276.00 304.53 580.53 1:0.097 417825 420256 838081 Rape 2.6 146.67 110.93 37.67 75.00 370.27 1 381333 288427 97933 195000 962693 seed Sugarcane 0.6 29.33 11.67 48.07 89.07 1 17600 7000 28840 53440 Vegetable 0.8 153.00 307.20 460.20 1 122400 245760 368160 Watermelon 0.6 61.67 90.00 151.67 1 37000 54000 91000 Cotton 5.8 7.67 7.00 14.67 1 44467 40600 85067 Total 2708573 2107917 556410 1211968 6584868 Paddy field area 2519.22 1804.40 450.00 907.00 5680.62 （mu） Output value per mu paddy field 1075 1168 1236 1336 1159.2 （Yuan/mu）

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Mean annual output for dry land of sample villages for previous 3 years between 2003~2005 Table 4-2 Unit price Mean annual output between 2003 ～2005 （T） Ratio of Mean annual output value between 2003 ～2005 （Yuan） main and Crops (Yuan/ Taohuatan Lianhong Majia Yuhe Sub-total sideline Taohuatan Lianhong Majia Yuhe Sub-total kg) product Wheat 1.38 69.00 76.13 145.13 1:0.907 181585 200357 381942 Corn 1.5 171.67 446.00 3.77 16.10 637.53 1:0.907 282478 733893 6198 26493 1049061 Soybean 2.8 36.00 61.33 8.23 3.77 109.33 1:0.078 108662 185129 24851 11369 330012 Sugarcane 0.6 5.87 5.00 20.60 31.47 1 3795 3234 12360 19389 Potato 1.1 30.00 135.00 11.77 2.93 179.70 1 33000 148500 12943 3227 197670 Peanut 3.2 7.67 10.00 4.00 1.33 23.00 1 24533 32000 12800 4267 73600 Sesame 7 9.67 9.67 19.33 1 67667 67667 135333 Vegetable 0.8 17.00 38.40 55.40 1 13600 30720 44320 Total 701719 1367545 73627 88435 2231326 Dry land area 760.50 1600.00 76.00 100.00 2537 （mu） Output value per mu dry land 923 855 969 884 879.7 （Yuan/mu）

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(2) Compensation criteria for tea garden According to the relative rules of Implementation Method of Anhui Province on "Land Administration Law of the People's Republic of China", land compensation for tea garden will be 7 times of the mean output value of the three years before land requisition; and resettlement subsidy will be 3 times of the mean output value of the three years before land requisition. The land acquisition requisitioned for the project was tea garden, with fine quality, generally tea sold in the location place with low price. According to calculation by analysis on survey results, the yearly output value is 875 Yuan/mu for tea gardens, and 875 Yuan/mu for seedling tree, accordingly the compensation standard of tea gardent is 875×（7+3） +875=9625Yuan/mu. ⑶ Compensation standard for fish pond Based on the relative rules of Implementation Method of Anhui Province on "Land Administration Law of the People's Republic of China", the compensation standard for fish pond is 6 times of mean output value of previous 3 years before the land acquisition; and the resettlement subsidy is 3 times of mean output value of previous 3 years before the land acquisition. The Fish ponds acquisitioned are all simple ponds with fixed fishes, the mean output value for such fish pond in previous 3 years before the land acquisition is 1400 Yuan/mu. Accordingly, the compensation standard of fish pond is 1400 X (6+3) =12600 Yuan/mu. ⑷ Compensation standard of woodland ① Compensation of woodland Based on the relative rules of “Regulations of Woodland Protection and Management of Anhui Province”, the compensation standard for bamboo and timber forest in main felling period is 4 times of mean output value, the compensation is 6 times of mean output value of previous 3 years before the land acquisition for nursery, and is 70% of timber land compensation for new charcoal forest land and others. By calculation, annual output is 1440 Yuan/mu for bamboo forest in the main felling period and 1500 Yuan/mu for timber forest in the main felling period, and 1500 Yuan/mu for nursery. Therefore, the compensation is 5760 Yuan/mu for bamboo forest, 6000 Yuan/mu for timber forest, 4200 Yuan/mu for shrube forest, and 9000 Yuan/mu for nursery. ② Resettlement subsidy Based on the relative rules of Implementation Method of Anhui Province on "Land Administration Law of the People's Republic of China", the resettlement subsidy of forest land is 3 times of mean output value of previous 3 years before the land acquisition, the annual output is 360 Yuan/mu for bamboo forest, 150 Yuan/mu for timber forest, 60 Yuan/mu shrub forest, and 1500 Yuan/mu for nursery. Therefore, the compensation is 1080 Yuan/mu for bamboo forest, 450 Yuan/mu for timber forest, 180 Yuan/mu for shrube forest, and 4500 Yuan/mu for nursery.

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③ Compensation standard for wood Compensation will be 2 times of the yearly output value of timbe compensation for bamboo, 720yuan/mu; 60% of practical storing up value (practical storing up value: 360 yuan/mu) for woods; 20% of wood compensation for shrub forest (72 Yuan/mu), and 2 times of the output value of woods for nursery (3000 Yuan/mu). Therefore, the compensation standard is 5760+1080+720=7560Yuan/mu for bamboo forest, 6000+450+360＝6810 Yuan/mu for timber forest, 4200+180+72＝4452 Yuan/mu for shrube forest, and 9000＋4500+3000=16500 Yuan/mu for nursery in the project affected area . ⑸ Compensation standard for other unused lands Based on the relative rules of Implementation Method of Anhui Province on "Land Administration Law of the People's Republic of China", the compensation standard of other unused land is 2 times of mean output value of the dry land of previous 3 years before the land acquisition, no resettlement subsidy be paid. Therefore, the compensation standard for other unused land is 2×880=1760 Yuan/mu. See Table 4-3 for the compensation standard of each type of land. Summary of compensation standard of different type of land Table 4-3 Unit：Yuan/mu Land Resettlement Compensation of Compensation of Total of No. Description compensation subsidy young crops forest compensation I Farmland 1 Paddy field 6960 4640 580 12180 2 Dry land 5280 3520 440 9240 II Tea garden 6125 2625 875 9625 III Fish pond 8400 4200 12600 IV Forest land 1 Bamboo 5760 1080 720 7560 2 Timber 6000 450 360 6810 3 Shrub 4200 180 72 4452 4 Nursery 9000 4500 3000 16500 Other unused V 1760 1760 land

B. Compensation standard for temporary land According to construction time and charateristics, compensation for temporary used land includes compensation for young crops, compensation for land loss and compensation for recultivation. According to the data provided by Anhui Highway Investigationa and Design Institute, project temporary occupies 142.88 mu land, including 5.59 mu paddy field, 45.95mu dry land and 91.34 mu forest land, and the construction period is 2 years. By calculation, the output value, compensation for young crops and fee for woods loss are as follows: for paddy field,

75 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） the mean output value is 1160 yuan/mu and 580 yuan/mu for young crops; for dry land, the mean output value is 880 yuan/mu and 440 yuan/mu for young crops; and for the forest land, the mean output value is 150 yuan/mu and 360 yuan/mu for young crops. Thus for the temporary used land during construction period, compensation for land loss are as that: 1160 yuan/mu *2 years =2320 yuan/mu for paddy field；880 yuan/mu *2 years =1760 yuan/mu for dry land；and 150 yuan/mu *2 years =300 yuan/mu for forest land. After construction, the project construction unit will be responsible for recultivation, fees will be 2000 Yuan/mu for cultivated land and vegetable land, and 1500yuan/mu for woodland. So land compensation criteria for temporary used land are: 4900 yuan/mu for cultivated land; 4200 yuan/mu for dry land; and 2160 yuan/mu for woodland. At the same time, to reduce affection of land requisition, labors there can participate project construction or other work during construction period. 4.3.2 Compensation of Housing and its Attachment In order to prepare the compensation standard correctly and reasonably and make the resettlers to have compensation equivalent to house replacement price, a detail survey on replacement price of brick-concrete, brick-wook structure house was carried out while perfroming the inventory survey in the project affected area. Based on the survey, the mean cost for brick-concrete structure house is 327.65 Yuan per square meter, and brick-wood structure house 269.88 Yuan per square meter, but considering the gap of material transportation at different place and the use quantity, the unified standard is determined as that: 328 Yuan for brick-concrete house and 270 Yuan for brick-wood house. At the same time according to house existing fitment condition and class of house material, the scope of compensation standard of brick-concrete house is between 300~350 Yuan, the scope of compensation standard of brick-wood house between 250~300 Yuan, and the compensation of attachment referring relative rules of each county. See Table 4-3 for analysis of replacement price of brick-concrete house. See Table 4-4 for analysis of replacement price of brick-wood house. See Table 4-5 for the unit price of attachment.

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Analysis of replacement price of brick-concrete house Table 4-4 Quantity for specific Unit price Amount Description Unit Remarks area （Yuan） （Yuan） I. Main construction material 300.05 1. Cement t 0.17 315 53.55 2. Sand t 0.6 32 19.20 3. Aggregates t 0.8 32 25.60 4. Steel t 0.017 3550 60.35 5. Timber m3 0.04 1200 48.00 6. Brick piece 250 0.26 65.00 7. Lime kg 25 0.11 2.75 8. Sheet-stone t 0.8 32 25.60

II. Other material 12.00 4%*（I）

III. Integrated fee 15.60 15%*（I+II） Total 327.65

Note：1. “Quantity for specific area” is from the data offered by Huangshan Area Construction Bureau; “Unit price” is based on price data of main construction material in 2006 offered by Huangshan Area Construction Bureau; 2. “Other material” includes aluminum window and door, glass and other hanging devices, etc.; 3. “Integrated fee” includes labor, material wastage, equipment, etc.; 4. The analysis of brick-wood house is the same as above.

Analysis of replacement price of brick-wood house Table 4-5 Quantity for specific Unit price Amount Description Unit Remarks area （Yuan） （Yuan） I. Main construction material 225.65 1. Cement t 0.13 315 40.95 2. Sand t 0.5 32 16 3. Aggregates t 0.6 32 19.2 4. Steel t 0.06 1200 72 5. Timber m3 230 0.26 59.8 6. Brick piece 20 0.12 2.4 7. Lime kg 17 0.9 15.3 8. Tile piece 9.03

II. Other material 35.20 4%*（I）

III. Integrated fee 269.88 15%*（I+II） Total

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Compensation standard of house relocation and attachments Table 4-6 Type Description Unit Compensation standard Remarks Brick-concrete Yuan/m 2 328 Alteration range 300~350 Brick-wood Yuan/m 2 270 Housing Earth-wood Yuan/m 2 200 Alteration range 250~300 Simple Yuan/m 2 100 Sty and toilet Yuan/m 2 50 Simple 60 shed Brick fence Yuan/m 2 30 Attachments Cement ground Yuan/m 2 20 Well Yuan/ea. 500 Telephone Yuan/set 160 Wired TV Yuan/household 200

4.3.3 Compensation for Infrastructure in Host Area A. Compensation of new house plot Based on the relative rules of Implementation Method of Anhui Province on "Land Administration Law of the People's Republic of China", the resettler will get 160m2/household new house plot with compensation of 3000 Yuan/household. B. House plot leveling The house construction is basically built individually at scattered places. The house plot leveling work will be done by themselfes. But for the difficult spot, unified handling will be performed by the county(district) resettlement implementation department based on the unified plan. The standard of house plot leveling cost is tentatively 5000 Yuan per household. C. Water supply and power supply According to the preliminary resettlement program, the resettlers in this project is basically arranged in same village, and the existing water supply facility is compensated reasonably, and original water supply system can be used in new host area. Now, the rebuilding work of rural transmission line of each village is completed basically, and the power supply system of each host spot perfected. So this project is only to solve water piping and power feeding line, the compensation is 800 Yuan for each household. D. External traffic The convenient traffic for host area is considered for the selection of host area, all house plots are near the road, about 10m away, combining the house plot leveling the traffic problem can be solved, so that no compensation is made for external traffic. 4.3.4 Compensation for Relocation and Subsidy for Temporary Transition Because the resettlers are arranged locally and the relocation distance of most households is within 500m, but due to tight time for housing construction and fully use of old housing material, the subsidy for relocation and temporary transition will be paid 20 Yuan

78 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） per person for each month, and the transition period is 6 months and the subsidy for temporary transition is 120 Yuan/person. The compensation for relocation is 300 Yuan/household. 4.3.5 Compensation for Scattered Fruit Trees The compensation of scattered fruit trees is varied based on its type, age and size of tree. By the preliminary estimation and relative rules of each county(district), the compensation standard is made. See Table 4-7 for details. Compensation standard for scattered fruit trees Table 4-7 No. Description Unit Unit price of compensation（Yuan） Alteration scope

1 Timber

1.1 ≤10cm ea. 10 2~20

1.2 >10cm ea. 30 10~50

2 Fruit ea. 60 20~150

At this stage, the fee for tomb relocation is 500 Yuan/ea., which is included in budget. 4.3.6 Compensation Standard for Special Facilities Relevant professional departments still do not suggest the plan for rebuild the special facilities, so the budget is made with its number affected based on the investment of similar items in the project affected area. A. Compensation standard of power facilities The compensation fee for 35kV transmission line is tentatively 80000 Yuan/km, 10kV transmission line is tentatively 50000 Yuan/km, 220/380V transmission line is tentatively 25000 Yuan/km, and relocation and installation of transformer is 5000 Yuan/each. B. Compensation standard of communication facilities The compensation fee for communication cable is tentatively 12000 Yuan/km, and for communication optic cable is 50000 Yuan/km. 4.4 Entitlement Matrix All the units and individuals affected by the project are entitled with the following right. See Table 4-8 for details.

79 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） Entitlement Matrix for Anhui Road Project -III（S322 Taohuatan~Gantang section） Table 4-8 Compensation Standards Entitled Impacts Resettlement Policy Persons Items Rate 1. All demolished houses will be compensated with replacement value without depreciation and the value of the salvageable materials. 328（300~350） housing and Resettlers Brick-concrete attachment Salvageable materials of old housing belong to the PAPs, they can use them to build their new houses. Yuan/m 2 2. The resettlement organization shall assist the resettlers to get new house plot in the village, the works for water supply, power supply, road and 270（250~300） 2 Brick-wood ground leveling will be performed by resettlers selves or by entrusting qualified contractor, the area of new house plot is not over 160m . Yuan/m 2 3. This plan respects the wishes of most resettlement households, adopting self-demolishing and self-building way. For host area with more 2 Earth-wood 200 Yuan/m difficulty in housing construction, based on willing of resettlers, resettlement office will entrust the qualified unit to carry out the construction and insufficient fee will be made up by contingency. The resettlers can select freely whether use old housing material fully, can live in old Simple 100 Yuan/m2 house before completion of new house in within specific date, and they must not be forced to remove before assigned date. 4. The PAPs will receive notice 3 months before starting housing construction, and will have at least 4 months for housing construction. Time Sty and toilet 50 Yuan/m2 frame will be discussed with the PAPs. Off peak months will be chosen for construction to avoid affect on farming activities. PAPs will receive compensation for 300 Yuan/household for relocation and 120 Yuan/person for transition and housing subsidy. Simple shed 60 Yuan/m2 5. Effective measures will be adopted to help vulnerable PAPs. For them, the townships and villages will help them to build new housing and to 2 move in the new house after consulting with them. Brick fence 30 Yuan/m

6. Housing compensation will be paid to the PAPs before construction of their new houses. In case installment is adopted, the last installment will 2 be paid before completion of the new houses. Cement ground 20Yuan/m 7. The PAPs can lodge appeals or grievance free of charge on any aspects relating to the resettlement including compensation. The appealing Well 500 Yuan/ea. organization shall not take any charges. Telephone 160 Yuan/household

Wired TV 200Yuan/household

Compensation 300 Yuan/person

Transition fee 120Yuan/person

80 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） (to be continued)

Entitled Compensation Standards Impacts Resettlement Policy Persons Items Items Permanent Owner 1. The village due to land acquisition will get the land compensation and resettlement subsidy from the land user unit; The farmer due to land acquisition will get Compensation standard for different land the compensation for young crops and ground attachment; besides, if the village performs the land adjustment or land development and the farmer gets new type of land (Yuan/mu) requisition land or other production material, the compensation for land and resettlement subsidy will be managed by the village, on the contrary, if the village does not adjust land or develop land, and the farmers do not get any productive material, the corresponding resettlement subsidy shall be paid directly to farmers and Farmland land compensation be controlled by the village, which will be discussed on the villagers conference for the use and distribution. Paddy field 2. The land compensation and resettlement subsidy is used mainly for production and living of resettlers, such as for construction of rural infrastructure of water 12180 conservancy and agricultural structure adjustment. Dry land 9240 3. Compensation standard for land acquisition: the compensation standard for farmland is 6 times of mean output value of previous 3 years before the land acquisition; the resettlement subsidy for each rural person is 4 times of mean output value of previous 3 years before the land acquisition plus young crops Tea garden 9625 fee, after computation, the land compensation is 12180 Yuan/mu for the paddy field and 9240 Yuan/mu for the dry land. Based on the relative rules of Fish pond Implementation Method of Anhui Province on "Land Administration Law of the People's Republic of China", the compensation standard for orchard is 7 12600 times of mean output value of previous 3 years before the land acquisition; and the resettlement subsidy is 3 times of mean output value of previous 3 years Forest land before the land acquisition. After computation, the compensation standard of tea garden is 9625 Yuan/mu. Based on the relative rules of “Regulations of Woodland Protection and Management of Anhui Province”, the compensation standard for bamboo and timber forest is 4 times of mean output value of Bamboo forest 7560 main felling period, for the nursery is 6 times of annual output, for new charcoal forest land and others is 70% of timber land compensation. The resettlement subsidy is 3 times of annual output, therefore the compensation is 60% of actual value for timber forest, 20% of wood compensation for shrub Timber forest 6810 forest and 2 times of the output value of woods for nursery. Therefore, the compensation standard is 7560 Yuan/mu for bamboo forest, 6810 Yuan/mu for timber forest, 4452 Yuan/mu for shrub forest, and 16500 Yuan/mu for nursery in the project affected area. Based on the relative rules of Implementation Shrub forest 4452 Method of Anhui Province on "Land Administration Law of the People's Republic of China", the compensation standard of other lands is 2 times of mean Nursery output value of previous 3 years before the land acquisition, no resettlement subsidy be paid, therefore, the land compensation and resettlement subsidy of 16500 other land in each county(district) is 1760 Yuan/mu. Other lands 1760

Temporary Contractor The compensation of temporary land includes compensation for young crop, land loss and land rebuiding, the temporary land of this project is the dry land, Compensation standard for temporary land use forest land and few paddy field and the construction period is 2 years. By calculation, the compensation standard of temporary land occupation is 4900 land（Yuan/mu） Yuan/mu for the paddy field, 4200 Yuan/mu for the dry land and 2160 Yuan/mu for the forest land. The land compensation is 2320 Yuan/mu for the paddy field, 1760 Yuan/mu for the dry land and 300 Yuan/mu for the forest land. The compensation of young crop is 580 Yuan/mu for the paddy field, 440 Paddy field 4900 Yuan/mu for the dry land and 360 Yuan/mu for the forest land. The compensation cost for cultivated land resuming is 2000 Yuan/mu and for forest land is 1500 Yuan/mu. When the temporary land expires, the project construction unit shall resume it. Dry land 4200

Forest land 2100

81 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang）

(to be continued) Impacts Entitled Persons Resettlement Policy Compensation Standards Scattered trees Owner 1. All scattered trees felling or replanting by the project, its owner can get compensation in cash or the cost for replanting. Item Rate Timber（≤10cm） 20（2~20）Yuan/ea. Timber （>10cm） 30（10~50）Yuan/ea. Fruit tree 60（20~150）Yuan/ea.

Special facilities Owner 1. All affected special facilities shall be relocated to resume original function. The project office shall negotiate with relative Compensation of special facilities responsible department for the investment according the plan. Item Rate （Yuan/km）

Communication cable 12000 Optic communication cable 50000 110kV transmission line 120000 35kV transmission line 80000 10kV transmission line 50000 220/380V transmission line 25000 Transformer 5000

82 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang）

5. Resettlement and Rehabilitation Scheme RAP is under the united organization of Provincial Highway Bureau, first the affected villages put up their initial resettlement plan according to the economic features and the existing resource usage status and on the basis of widely soliciting opinions from PAPs, then local governments at different levels along the road line and resettlement consultation unit (ECIDI) will take reasonable and practical analysis of it according to existing laws and regulations, and at last the resettlement scheme for the villages is determined. 5.1 Target and Task 5.1.1 Target The ultimate target of resettlement for this project is: to find the way out for production of the resettlers, reasonably arrange the labor forces, make the resettlers’ production and living level improved or at least not lower than that before. According to the living level of resetters along the line in 2005 and combining the development status of the city in terms of national economy and social condition and the long-term prosperity target in 2015, the target of the resettlement of the project is as follows. (1) Guarantee grain supply, and fully develop potential of land and increase the land output through agriculture structure adjustment for the areas lack of resources; (2) The yearly net income per capita of affected villages should be restored to the previous level. (3) The public infrastructures, schools, hostipals, social farewell level, natural environment and traffic conditions should be improved as compared with those before resettlement. 5.1.2 Task According to statistics by survey, practically 256 households with 984 persons are affected and needed to be resettled, of which 39 households with 150 persons are involved in the housing relocation and 201 agriculture residents are involved in the resettlement. Based on the requirements of overall project progress, resettlement will be commenced in 2007, it is the year with conditions basically as that of the surveying year and also the natural population increasing in two counties is less than 3‰, so that the resettlement plan is compiled based on practical number by survey, without the natural population increasing considered. The details are in Table 5-1.

83 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang）

Summary of Resettlement Population Table 5-1 Of which: population Population affected by land affected by housing Agricultural population County Administrative acquisition and relocation Town(ship) relocation involved in (district) village Populatio resettlement (person） Household Population Household n Taohuatan 40 149 8 26 32 Taohuatan Lianhong 102 395 8 32 25 Jingxian Sub-total 142 544 16 58 57 Total in county 142 544 16 58 57 Lundu 48 184 15 60 86 Dongkeng 21 78 6 25 24 Longmen Yuchun 1 5 0 0 1

Huangshan Sub-total 70 267 21 85 111 area Majia 24 90 1 3 18 Gantang Yuhe 20 83 1 4 14

Sub-total 44 173 2 7 32 Total in the area 114 440 23 92 143 Total in project 256 984 39 150 201

5.2.1 Resettlement Guideline The resettlement work for this project should stick on the policy that: Esteem and care for the living and production habits of the local PAPs, take full consideration of the willings of the PAPs; with due consideration of the actual conditions in the original town (ship)s and villager groups, the rural resettlers will be resettled on land basis without changing the agricultural status if land is available for resettlement; based on developing the traditional crop farming and guaranteeing the basic material survival conditions of the resettlers, the local land resource shall be fully utilized for development through resettlement, so as to reach the target of prolonged social stability. 5.2.2 Principles of Resettlement Plan According to relative laws and regulations of the country and relative involuntary resettlement policies of World Bank, resettlement for the project will be based on the following principles: (1) Implement the resettlement well, fulfill the relative compensation policy, and aim at improving PAPs’ living level or at least restore it; (2) Resettlement should be coordinated with land treatment, national economy and social development; it should have full consideration, be unified and planned, correctly deal with the interest among state, collectives and personals. (3) The resettlement plan shall be compiled according to the inventory index and the

84 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） compensation standards. The re-construction standard and scale shall be based with the principle of recovery to the original standard and original scale. Investment should be based on the quota planning, without investment insufficiency. Combining the local development, the cost for enlarging the scale, raising standard and future plan shall be solved independently by local government and relevant department. (4) Determination of RAP and compensation criteria will be consulted with PAPs, and should accord with PAPs profit; (5) Adapt measures to meet the local condition, fully take advantage of local natural resources, quicken agriculture structure adjustment, improve irrigation condition, raise the land usage, and increase the agriculture development capacity so as make PAPs keep their original production and living level; (6) The resettlement plan should be based on the principle of “Beneficial to the production and convenient for living”. (7) The resettlement shall be combined with the local development, resource utilization and economic growth as well as environment protection. Considering the local conditions, a practical and feasible resettlement plan should be developed to restore and improve their economic production and create basic conditions for long-term development. 5.3 Overall Resettlement Scheme During designing, the design unit had fully considered the affection on local production and living system, and optimized project design, took measures to optimiz the route and use the existing line as far as possible, controlled the road width, reduced the land acquisition scope and affect of the project construction on the local production and living, so that the project construction will not damage the original production and living system of the villages. In the involved towns (street) and villages, symposia were held to discuss resettlement scheme, which would be determined based on PAPs’ opinions and the practical condition of the affected area: PAPs would be resettled in the original community so that their original production and living style, habit and social relationship is kept, and it would be favorable to improve their activity and adaptability of production and living. In order to reduce project affect, the houses are dismantled and constructed by resettlers themselves, and resettlers can use the salvageable material from the old houses. On production, generally, land will be adjusted within the scope of the village or villagers’ group, mainly with the manner of agriculture development on land. By improving irrigation works, adjusting agriculture structure, increasing the land usage, and supporting with compensation, it ensures that they can restore or improve their production and living level. 5.4 Analysis of Carrying Capacity for Resettlement 5.4.1 Nature Condition and Land Resource The project is in Wanjiang plain, where has warm climate and fine characteristic of land, all these are favorable for farming. General, the paddy field is acid and dry land is alkali mostly , which has a good environment for developing grain, forest, tea and vegetable. Then the soil fertility and production level is low because of neglecting in management and weakness of the water conservancy facility of farmland. By adopting measures of scientific

85 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） farming, fertilizing land, perfecting the irrigation works to exploit the potential of cultivated land as well as adjusting the agricultural structure and increasing the production level and output per mu, there is still room for development of production level and yield output and the nature condition will not be the restricted factor for carrying capacity of resettlement. After land acquisition, the cultivated land per capita is more than 0.5mu for most administrative villages, and 2.64mu for Lianhong village in Taohuatan town (with more paddy land). Therefore, on the basis of perfecting irrigation works and enhancement of agriculture investment, most of the villages can ensure the ration grain supply for villagers. The village with the least land area is Yuchun village in Huangshan area, only 0.5mu per capita, Yuchun village is a back resettled village for a reservoir of Chenchun Hydropower Station, and has less cultivated land because of impact from inundation of Taiping Lake. The land acquisitioned for the project will only invovle 0.84 culativated (garden) land in Yuchun village and the impace is less. Recent years, most of surpuls labor forces change to work in 2nd and 3rd industry or engage in outgoing work. So that the land resource will not be the restricted factor for carrying capacity of resettlement. The details of cultivated land for the affected villages are in Table 5-2. Summary of Cultivated Land of Affected Villages Table 5-2 Total Cultivated land Agricul- Total Cultivated land County Administra- cultivated Proportion per capita Town (street) tural cultivated per capita after (district) tive villages land (%) before land person land land acquisition acquisitioned acquisition Taohuata Jingxian Taohuatan 1855 3279.72 36.14 1.10 1.77 1.75 n Lianhong 1263 3404.4 73.76 2.17 2.70 2.64 Huangsh Longmen Lundu 1012 815 64.87 7.96 0.81 0.74 an area Dongkeng 618 605 23.48 3.88 0.98 0.94 Yuchun 586 292 1.53 0.52 0.50 0.50 Gantang Majia 625 526 20.75 3.94 0.84 0.81 Yuhe 761 1007 17.84 1.27 1.32 1.30

5.4.2 Features of PAPs and relationship between people and land During the long-term living period, PAPs has their own special living habit and social relationship net. In order not to affect the living habit, destroy the social relationship net and enlarge the original cultivating scope, according to the exsiting land source conditions of each village, PAPs would be resettled in the affected villages and would keep developing planting and water breed aquatics, through perfecting farmland infrastructures and adjusting agriculture structure, to enhance agriculture developing after effect. In addition, during project construction, PAPs’ will be encouraged to participate in the project construction and service so as to meet the need of workers for project construction as well as the need of living consumption so that PAPs’ economic income could be increased. After project completed, the measure to quicken the circulation of local agriculture products and byproducts and promote the local touring and economy development should be adopted. So that in the resettlement plan, the way of open resettlement will be carried out by taking the land as basis, PAPs are encouraged to engage in their original industry, by improving the traffic condition in the

86 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） effected area, the condition for the development of secondary industry and tertiary industry is created and the developing capacity for the secondary industry and tertiary industry is reserved. The environment capacity at the affected area will be enough. 5.4.3 Production and living infrastructures (1) Traffic condition Project construction will bring certain affection on original production and traffic, during project design, corresponding measures had been considered: the traffic safe desingates will be designed at the places near schools or other zones concentrated with persons. The project construction will make local persons have more convenient on travel, and will quicken circulation of goods and people, promote exploitation of local tourist resource, and greatly stimulate development of local economy. Through implementation of resettlement scheme, living environment of PAPs and infrastructures will be improved at certain level. So traffic will not be the restricted factor in environment carrying capacity. (2) Water using condition The project affected area is rich in the surface water and underground water and has the high underground water level. Farmers take water from wells or from running water, so it is very convenient for local farmers to get water for production and living, the project construction will not affect the drinking water of local residents. So that the water amount and resource will not be the restricted factor of environment carrying capacity. Along with the development of economy in the affected area, production and living condition will be improved gradually, and tap water will be used widely. (3) Power using condition The facilities of transmission lines and substations affected by the project construction will be reconstructed according to original standards, and the power condition for farmers at the affected area will not be affected. (4) Medical treatment and civilization condition The project construction will have no direct affect on social service facilities such as medical service points and schools, and these in the towns and villages can still be used. By pavements designed near the medical service points and schools, no inconvenience will be brought on local farmers’ hospitalizing and schooling, but it will be more convenience for local farmers’ hospitalizing and schooling after the project completed. (5) Supply of fuels Liquefied gas and firewood are the main fuels for PAPs in the affected area, the land acquisition for project has a less affect on the towns and villages, and will not have great affect on the supply of the liguefied gas and firewood. 5.4.4 Economic developing and potential of the affected area The economy status in the affected area is usual, but reserved land resource is rich, with enough surplus labor forces, development potential is unlimited. In the future economic development, by fully taking advantages of resource superiority, improving the traffic

87 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） condition, suiting measures to local conditions, expanding production ways, strengthening technical investment and developing PAPs’ brains, and improving their production technical level, stimulating the overall development of agriculture, forest, herd, byproducts, industry, commercial, tourist and transportation; and taking use of land resource, developing open production, and improving PAPs’ production and living level, the environment capacity will be expanded along with the development of economy. 5.5 Rural resettlement plan 5.5.1 Production and living resettlement and rehabilitation scheme During survey on the project affect and design of resettlement, resettlement working group held symposia, participated by village cadres and some representatives of the villagers in the involved county (district), town (street), and villages to discuss resettlement scheme. Later on, according to resource and practical condition, the villages put forward their resettlement scheme, which was discussed by two committees of the villages or on villagers’ representative meeting. In the end, Primary Resettlement Plan for XX Villages Involved by Anhui Highway Project III (S332 Taohuatan∼Gantang Section) was compiled and accepted by local governments at all levels Discussing resettlement scheme and representatives. According to relevant requirements of with resettlers Operational Directives OP.4.12, "Involuntary Resettlement" - World Bank, through analysis of environment capacity for the effected villages after land acquisition, it is determined that PAPs will be resettled within the original community so as that PAPs keep their original production and living style as well as their original social relationship. (1) Production rehabilitation plan Through analysis of geography, land resource amount and local farmers’ income structures, on the basis of fully soliciting opinions from PAPs and representatives of villagers and with respect of most PAPs’ opinions, the resettlement working group, together with local government, will work out the practical production rehabilitation scheme for villages, and adopt the cash compensation or other production rehabilitation measures such as construction of irrigation infrastructures, improving disaster preventing capacity, adjusting agriculture structures, improving sorts of economic crops and agricultural yield output. PAPs those have cash compensation will get all resettlement subsidies, and land compensation belongs to collectives. Since the resettlement schemes for the villages were determined according to most of PAPs’ opinions, if individual PAP does not agree with the resettlement scheme of his or her village and wants another resettlement scheme, PRO would try to help them. If the villages or villager groups with the cash resettlement are willing to engage in the agriculture production, county (district) PRO would help them get land to develop the agriculture product; otherwise, if PAP would like to have the cash compensation for engaging in business, they could get the cash compensation in equals to resettlement subsidy so long as they have commercial base and ability and apply it through notarization.

88 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang）

(2) Living resettlement plan According to PAPs’ opinions and the practical condition of project affected area, efforts are made to reduce the negative affects caused by land acquisition and housing relocation on the local farmers as far as possible. Combined with the local village and town plan as well as the construction of new social village plan, PAPs will be resettled with the original community, houses should be constructed according to their willing, built at first and dismantled later or dismantled and built at the some time, and the old material dismantled from houses is treated by resettlers on their willing. Due to the different degree of effect on each village, resource structures and infrastructures, resettlement plan for the villages are different. The details are as below: A. Jingxian (1) Taohuatan village Taohuatan village locates at the headstream of Qingyi river, facing with Qingyi river in the east, being adjacent with Taiping Lake in the south, linking with Huangshan mountain area in the west, and backing with Danshan mountain in the north. It is 41km away from Jingxian county, with S322 road and Longwan road going through, traffic is convenient, but road condition is poor. Taohuatan village has a long history, is rich in the travel resource and in the travel center of "Golden triangle " with "Two Mountains and a Lake", with graceful mountain landscape in its boundary, verdant woods and green water, bright landscape jointed with natural and human culture spots. It has famous sight spots of Taohuatan, Caihonggang, Yimen, Huanxiange, Hufeng Hall, Wancun old street, etc., which are not developed yet. By the end of 2005, the village has 16 villagers’ groups, with 1855 persons from 577 households; the cultivated land 3279.72 mu, of which the paddy field is 2519.22mu and dry land 760.5mu, with 1.77mu cultivated land per capita; and 731 labor forces (accounting for 39.4% of total population) mainly engaging in the agricultural production and outgoing work. By statistic, the village has 220 persons engaging in the outgoing work in the working places of Shanghai, Zhejiang, Jiangsu, Guangdong, Fujian and others. By the end of 2005, the pure income per capita of the farmers reached to 3010 Yuan. Totally 36.14mu cultivated land will be requisitioned for project construction, of which paddy field is 29.91mu and dry land is 6.23mu. The land acquisition affects five villages of Xinyi, Xin’er, Xinsan, Qianyi and Qian’er, and the details are shown in Table 5-3. The land acquisition and housing relocation affects 40 households with 149 persons, of which 8 households with 26 persons will be affected by housing relocation. After the land acquisition, the cultivated land per capita will reduce to 1.75mu, 1.1% decreased, thus cultivated land acquisition has a less affect on the village. Among the effected villager groups, only Xin’er Group will be affected greatly, with the cultivated land per capita 1.17mu after the land acquisition (9.4% decreasing). The effect on other villager groups will be less (the cultivated land decreasing is less than 6%). Throught the site survey, it shows that the land acquisition will have less effect on the most of households, only 1~2 mu land will be acquisitioned for each household, less than 10% of their contracted land.

89 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang）

Summary of Cultivated Land Acquisition for Taohuatan Village Table 5-3 Cultivated land Cultivated Agricultural Total cultivated Cultivated land per capita land per capita Reducing Villager population land acquisitioned before land after land proportion Group (person) (mu) (mu) acquisition acquisition (%) (mu/person) (mu/person Whole village 1855 3279.72 36.14 1.77 1.75 1.1 Qianyi 101 167.05 1.43 1.65 1.64 0.9 Qian’er 128 180.52 7 1.41 1.36 3.9 Xinyi 115 159.2 7 1.38 1.32 4.4 Xin’er 125 161 15.2 1.29 1.17 9.4 Xinsan 125 237.55 5.51 1.90 1.86 2.3

Based on the widely soliciting opinions from PAPs, after study and discussion by two committees of villages, and according to the practical condition of the village, the following measures will be taken for resettlement of PAPs in the village: -----Production rehabilitation measures: (1) For the groups with less affect from the land acquisition, the cash compensation will be carried out, i.e. according to relevant policy of the country, resettlement subsidy paid to the households with full amount and no land adjusted in the village. For the groups with great effect from the land acquisition, and land adjustment will be carried out within the village. (2) Reclaim wasteland. As the realization of mechanization, no cattle is needed for farming basically, therefore it is planned to reclaim 100 mu barren mountain area (which was used for grazing of three villages such as Xinyi, Xin’er and Xinsan at side of S322 road ) into the cultivated land, which will be allotted to greatle effected households to plant mulberry. The total investment is 60000 Yuan. It is to carry out the land adjustment within the effect village. After two years it will get benefit, based on calculation of 700 Yuan income per mu, the yearly income will be 70000 Yuan. (3) It is to improve infrastructure and reconstruct the ponds, weirs, channels so as to ensure the farmland irrigation and provide a good production condition for farmer households. -----Relocation plan: After fully soliciting opinions from the effected households and villagers’ representatives and combined with the new countryside construction, the centralized resettlement will be carried out for 8 households with house plot in new rural construction plan area in this village near the village committee office, and near two sides of S322 reconstruction section. The new house construction and ground leveling will be carried out by resettlers according to their willing, and facilities of water and power supply as well as the access also Reconstructed S322 in Project Ⅱ will be set down as those are nearly. (2) Lianhong village Lianhong Village is 4km away from the southwest of Taohuatan town, linking with Longtan village in the east, and bordering with Lundu village and Rucui village of Longmen

90 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） township in Huangshan area in the south, and Taohuatan village in the northwest. By the end of 2005, The village has a total area of 8.6km2, and 11 villagers’ groups, with 1236 persons from 340 households and 504 labor forces (accounting for 40.8% of total population). The village has the cultivated land 3404.4 mu, of which the paddy field is 1804.4mu and dry land 1600mu, with 2.75mu cultivated land per capita. The villagers are mainly engaging in the planting paddy and raising silkworm and 40% labor forec is engaging the outgoing work for a long term. By the end of 2005, the pure income per capita of the farmers reached to 2778 Yuan. Totally 73.76 mu cultivated land will be acquisitioned for project construction, of which paddy field is 63.20mu and dry land is 10.56mu. The land acquisition affects nine villages of Liujia, Shangcun, Huangli, Xiashu, Shanglian, Yugong, Tianban and Huangjialong, and the details are shown in Table 5-4. The land acquisition and housing relocation affects 102 households with 395 persons, of which 8 households with 32 persons will be affected by housing relocation. After the land acquisition, the cultivated land per capita will reduce to 2.69mu, 2.2% decreased, thus cultivated land acquisition has a less affect on the village. Among the effected villager groups, only Liujia group will be affected greatly, the cultived land per capita decreasing 6.8%, but it still has the cultivated land per capita 1.99 mu after the land acquisition so that the land acquisition will have less effect on the product and living of farmers. The effect on Qingshuitang group will be even less, only 6% of the cultived land per capita decreased. By the site survey, it shows that the land acquisition will have less effect on the local families, only 1-2mu land will be acquisitioned for each household, accounting for 10% of the contracted land area. Summary of Cultivated Land Acquisition for Lianhong Village Table 5-4 Cultivated land Cultivated land Agricultural Total cultivated Cultivated land per capita per capita after Reducing Villager population land acquisitioned before land land proportion Group (person) (mu) (mu) acquisition acquisition (%) (mu/person) (mu/person Whole 1236 3404.4 73.76 2.75 2.69 2.2 village Liujia 88 187.6 12.81 2.13 1.99 6.8 Shangcun 136 322.3 3.94 2.37 2.34 1.2 Huangli 92 217.8 11.59 2.37 2.24 5.3 Xiashu 132 438.8 9.46 3.32 3.25 2.2 Shanglian 152 299.6 12.39 1.97 1.89 4.1 Xialian 135 381.5 13.35 2.83 2.73 3.5 Yugong 127 458.1 1.22 3.61 3.60 0.3 Tianban 55 84.9 5 1.54 1.45 5.9 Huangjia 73 185 4 2.53 2.48 2.2

Based on the widely soliciting opinions from PAPs, after study and discussion by two committees of villages, and according to the practical condition of the village, the following measures will be taken for resettlement of PAPs in the village: -----Production rehabilitation measures: (1) For the groups with less affect from the land acquisition, the cash compensation will be carried out, i.e. according to relevant policy of

91 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） the country, resettlement subsidy paid to the households with full amount and no land adjusted in the village. For the groups with great effect from the land acquisition, and land adjustment will be carried out within the village. (2) Adjust the agricultural plant structure. The qualified paddy will be introduced and popularized for raising the output of the cultivated land, and it is planned to plant 300mu. (3) Through “Sunlight project” of town government, the resettlers are recommended in prior to participate in the technical training and organized to participate in outgoing work. (4) Improve infracturcture, increase the multiple-crop index, reconstruct large ponds and channels, construct the irrigation facility of Liujia reservoir, and reconstruc channel about 1500 m. The total investment is 100000 Yuan. -----Relocation plan: 8 households involved in the house relocation will have the scatter resettlement. The village committee would carry out the coordination for new house plot. It is decided preliminarily the house plot is at the Shilanchong area between Liujia and Shangcun group. The ground leveling will be carried out by resettlers, and facilities of water and power supply as well as the access also will be connected by 1500 m long water pipe, 500m transmission line and 200m long path. The houses will be dismantled and constructed by resettlers according to their own willing, and village committee will give a necessary help during house construction. Existing condition in Lianhong Host Area B. Huangshan District ⑴ Lundu village Lundu village, 26km away from the district government and 11km away by waterway, is at the middle stream of Taiping Lake andlocates at the north of Huangshan area, bordering with Fuxing and Dongkeng village in the east, Yuchun and Gantang village in the south, XinHua township in the west, and Lianhong village in Taohuatan town of Jingxian county in the north. The village has the land area of 16000 mu, 8 villagers’ groups and 10 natural villages, with 1012 persons from 294 households, and the labor forces of 589 (accounting for 58.2% of total). It has the tea garden 800 mu and forest land 15200 mu. Impacted by inundation for Taiping Lake, the cultivalted land in the village is less, only partial reclaimed land, and the labor forces in the village mainly engage in planting tea and bamboo as well as outgoing work. By survey, in the year of 2005, the outgoing forces are up to 208 persons, accounting for about 35% of total labor forces. The forces go out after tea picking season, working in field of construction, process, housekeeper and catering, and come back before Spring Festival. Their working areas are at Shanghai, Zhejiang, Jiangsu, Guangdong and Fujian. By the end of 2005, the pure income per capita of the farmers is 1824 Yuan. It is a poverty village. Totally 64.87 mu cultivated land will be acquisitioned for project construction, of which 7.36 mu is dry land and 57.51 mu garden land. The land acquisition involves two villagers’ groups of Yanling and Yaoshang, and the details are shown in Table 5-5. The land acquisition involves 48 households with 184 persons, 15 households with 60 persons involved in the house relocation. After the land acquisition, the cultivated land per capita in the village will reduce to 0.74 mu, 8.0% decreased. The cultivated land per capita in the group will reduce to 0.37 mu and 0.94 mu for Yanling and Yaoshang village respectively. Special for Yanling

92 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） village, it will have a great effect, the cultivated land per capita in the group will reduce 48.9%, and the land acquisition will be over 70% of total contracted land for a few, so that their living and production will be effected greatly. Summary of Cultivated Land Acquisition for Lundu Village Table 5-5 Cultivated land Cultivated land Agricultural Total cultivated Cultivated land Reducing Villager per capita before per capita after population land acquisitioned proportion Group land acquisition land acquisition (person) (mu) (mu) (mu/person) (mu/person (%) Whole 1012 815 64.87 0.81 0.74 8.0 village Yanling 164 120 58.63 0.73 0.37 48.9 Yaoshang 92 93 6.24 1.01 0.94 6.7

Based on the widely soliciting opinions from PAPs, after study and discussion by two committees of villages, and according to the practical condition of the village, the following measures will be taken for resettlement of PAPs in the village: -----Production rehabilitation measures: (1) For the groups with less affect from the land acquisition, the cash compensation will be carried out, i.e. according to relevant policy of the country, resettlement subsidy paid to the households with full amount and no land adjusted in the village. For the groups with great effect from the land acquisition, and land adjustment will be carried out within the village. (2) Adjust the agricultural planting structure and improve the planing kinds. It is planned to improve the tea garden 50 mu in Zhujialao district and improve kinds of tea, with investment 40000 Yuan. It will get benefit benefit from the tea after 4~5 year. In addiiton, it is planned that partial households are encouraged to develop the fishing in a net by taking use of water area in Taiping Lake, develop the fishing by 600 pieces of net on based of existing 400 pieces of net so as to increase the income of farmer households. (3) By advantagae of villages being strong in travel, popularize the the pleasure travel in farmer family with Taipingwan scenic spot as head and provide a series service of board and lodging as well as shipping for visitors to increase famers’ income and realize the goal to steady villages with tea, make villages be rich with fishery and be strong with travel service. (4) According to overall goal of social new rural construction and under unified plan, to improve the basic facility condition in villages step by step and construct the village road 4000 m. -----Relocation plan: The village committee decided to have the relative concentrated resettlement for households involved in the house relocation. The host areas are at two places of Yanziling and Shanpeng. As that the host areas are in the mountain area, a large-scale machine is needed during ground leveling for house plot. Therefore, the resettlement implement organization entrusts the qualified construction troops to carry out the excavation and ground leveling for house plot under unification and build the retaining wall for area with deep excavation. In order to solve the drink water for resettlers and animals, 2 impounded basins and 2500m long pipe will be constructed, and Existing condition of Yanziling Host Area in Lundu construction of 1400m long power line and 400m long connecting village road will be carried out. The village committee will arrange the

93 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） house plot for resettlers and pay the compensation for loss in property, fee for transportation during relocation, subsidy for life, and cost for infrastructure constriction in the host area according to relevant policies. The resettlers will dismantle and construct their houses according to their wishes. (2) Dongkeng village Existing condition of Shanpeng Dongkeng village, 4km away from Longmen township Host Area in Lundu village government, locates near the beautiful Taiping Lake, and belongs to mountain area and is reservoir and old revolution area. The village has 5 villagers’ groups, with 618 persons from 188 households, the labor forces of 383 (accounting for 62.0% of total). It has the cultivated (garden) land 605 mu, in which the tea garden is 580mu, the dry land 25 mu, with average land area per capita 0.98mu. The main labor forces in the village mainly engage in the planting tea, bamboo and outgoing work, and the outgoing forces are up to 176 persons, accounting for about 50% of total labor forces. The forces go out after tea picking season (in May) and come back before Spring Festival, with outgoing work period of 7 months, the yearly income per capita is about 6000 Yuan. By the end of 2005, the pure income per capita of the farmers is 1940Yuan. Totally 23.48 mu cultivated land will be acquisitioned for project construction and all are tea garden. The land acquisition involves Hexi villagers’ group of this village, and the details are shown in Table 5-6. The land acquisition involves 21 households with 78 persons, 6 households with 25 persons involved in the house relocation. After the land acquisition, the cultivated land per capita in the village will reduce to 0.94 mu, 3.9% decreased. The land acquisition will have less effect on the village. By the site survey, it shows that effect from the land acquisition is scatter, effect on most of households is less, only 20% of total contracted land involved in the land acquisition, effect on a few households is great, 60% of total contracted land involved in the land acquisition, but their living and production will be effected less. Summary of Cultivated Land Acquisition for Dongkeng Village Table 5-6 Cultivated land Cultivated land Agricultural Total cultivated Cultivated land Reducing Villager per capita before per capita after population land acquisitioned proportion Group land acquisition land acquisition (person) (mu) (mu) (mu/person) (mu/person (%) Whole 618 605 23.48 0.98 0.94 3.9 village Hexi 171 168 23.48 0.98 0.85 14.0

Based on the widely soliciting opinions from PAPs, after study and discussion by two committees of villages, and according to the practical condition of the village, the following measures will be taken for resettlement of PAPs in the village: -----Production rehabilitation measures: (1) For the groups with less affect from the land acquisition, the cash compensation will be carried out, i.e. according to relevant policy of the country, resettlement subsidy paid to the households with full amount and no land adjusted in the village. For the groups with great effect from the land acquisition, and land adjustment will be carried out within the village. (2) Reclaim wasteland. To reclaiming 400mu wasteland

94 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） in Mandankeng to plant qualified tea, and the reclaimed land will be allotted to households involved in the land acquisition according to their wishes. (3) Develop the economic woods and guide the farmers to plant bamboo in the mountain waste to increase the cutting quantity of bamboo so as to increase their income. -----Relocation plan: The village committee decided to have the scatter resettlement for 6 households involved in the house relocation. The village committee will arrange the host area, preliminary at area between Hexi group and Yejia. As that the host areas are in the mountain area, a large-scale machine is needed during ground leveling for house plot. Therefore, the resettlement implement organization entrusts the qualified construction troops to carry out the excavation and ground leveling for house plot under unification. The facilities of water and power supply as well as the access also will be connected by 2000 m long water pipe, 1300m long transmission line and 500m long access. The houses will be dismantled and constructed by resettlers Existing condition in according to their own willing. Dongkeng Host Area (3) Yuchun village Yuchun village, 14km way from the county, locates at the north mountain foot of Huangshan area, and is at the middle stream of Taiping Lake. Tailong highway is only access for village to the county. The village has 4 villagers’ groups, with 586 persons from 201 households, the labor forces of 337 (accounting for 57.5% of total). It has the cultivated (garden) land 645 mu, the forest land 11856 mu and water area 6000 mu. The main labor forces in the village mainly engage in the planting tea, forest production, breeding aquatics in reservoir. By survey, the outgoing forces are up to 105 persons, and they go out to engaging in the housekeepers and construction field in the working places of Shanghai, Zhejiang, Jiangsu, Guangdong, and others after tea picking season (in May) and come back before Spring Festival. By the end of 2005, the pure income per capita of the farmers is 1955 Yuan. Totally 1.53 mu cultivated land will be acquisitioned for project construction. By the site survey, the land acquisition only involves one household in Yujia village and is accounting for 12.0% of the family land, without house relocation. After consulting with the household, two committees of villages decided that the cash compensation will be carried out, i.e. according to relevant policy of the country, resettlement subsidy paid to the households with full amount and no land adjusted in the village. (4) Majia village Majia village is about 1km way from the north rural of Huangshan area, bordering with Xianrun village in the east, Lixin village in the south, Minzhu village in the west and Longmen village in the north. The village has 5 villagers’ groups and 7 natural villages, with 625 persons from 163 households, the labor forces of 386 (accounting for 61.8% of total), and has the total land area of 7km2. It has the cultivated land 526 mu, in which the paddy field is 450 mu and dry land 76 mu, and the cultivated land per capita 0.84mu. The labor forces in the village mainly engage in the planting tea, forest production, and in two villagers’ groups engage in the traditional forestry production. By survey, the most of surplus forces engage in

95 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） work in construction and service field at near area during slack season, and only 5% labor forces engage in the outgoing work for a long term. By the end of 2005, the pure income per capita of the farmers is 3540 Yuan. Totally 20.75 mu cultivated land will be acquisitioned for project construction, in which the paddy field is 19.15m and dry land 1.60mu. The land acquisition involves 3 groups of Majia, Shangwu and Xiawu, and the details are shown in Table 5-7. The land acquisition involves 24 households with 90 persons, 1 household with 3 persons involved in the house relocation. After the land acquisition, the cultivated land per capita in the village will be 0.81mu, only 3.9% decreased. The land acquisition will have less effect on the village. For the effected villager groups, only Majia Group will be affected greatly, with the cultivated land per capita 0.71mu after the land acquisition (14.2% decreasing). The effect on other villager groups will be less. Through the site survey, it shows that the land acquisition will have less effect on the most households, the land acquisition is only accounting for 10% of total contracted land, and is accounting for 70% of total contracted land for a few great effected households. With relative measures adopted, the effect on households will be reduced. Summary of Cultivated Land Acquisition for Majia Village Table 5-7 Cultivated land Cultivated land Agricultural Total cultivated Cultivated land per capita Reducing Villager per capita after population land acquisitioned before land proportion Group land acquisition (person) (mu) acquisition (mu) (mu/person (%) (mu/person) Whole 625 526 20.75 0.84 0.81 3.9 village Majia group 73 60 8.52 0.82 0.71 14.2 Shangwu 130 173 5.15 1.33 1.29 3.0 group Xiawu 80 136 7.08 1.70 1.61 5.2 group Based on the geographic and actual conditions and after study and discussion by two committees of villages, the following measures will be taken for resettlement of PAPs in the village: -----Production rehabilitation measures: (1) Adjust agricultural structure, and develop high efficient agriculture. Taking advantage of newly constructing S322 highway, to develop the vegetable base, 100mu in Shangwu and Xiawu group. (2) Efforts are made to send out labor forces, provide the training for outgoing forces and employment opportunity for them. Through “Sunlight project” of town government, the resettlers are recommended in prior to participate in the technical training. With the certain ability, they will have the strong competition ability in employment. Efforts are made to connect with near enterprises, ability training with a specific aim is carried out, and resettlers are recommended to enterprise for employment in prior. -----Relocation plan: The village committee will arrange the house plot in the rural host area for one household involved in the house relocation according to Huangshan area urban development plan. The leveling of house plot and construction of house will be carried out by resettler, and the Majia Planned Rural Host Area

96 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） facilities of water and power supply as well as the access will be constructed under unified plan. (5) Yuhe village Yuhe village is about 3km way from the southeast of Gantang town of Huangshan area and belongs to Huangshan urban plan area, bordering with Yueshang village of Xianyuan town in the east, Shiziban village in the south, Pingdong community and Gantang of Xincheng street office in the west, and Majia village and Lixin village in the north. The village has the total land area of 8km2 and has 6 villagers’ groups, with 761 persons from 268 households, the labor forces of 586 (accounting for 77.0% of total). It has the cultivated land 1007 mu, in which the paddy field is 907 mu and dry land 100mu, with the cultivated land per capita 1.32mu. The labor forces in the village mainly engage in the agricultural production and working in near places. Besides planting paddy, sweet potato, sesame, soybean and sugarcane, Yuhe village takes the geography advantage of nearing urban to develop vegetable production after agricultural structural adjustment. Now, the village becomes one of major vegetable production bases for the urban. In addition, the village has 50% of labor forces engaging in work of woodworker, tiler, decoration, etc. in the urban because of that Huangshan area has the city construction, with income of 35~60 Yuan /day. By the end of 2005, the pure income per capita of the farmers is 4300 Yuan. Totally 17.84 mu cultivated land will be acquisitioned for project construction, in which the paddy field is 15.99mu and dry land 1.85mu. The land acquisition involves 2 groups of Oujiachong and Xiawu, and the details are shown in Table 5-8. The land acquisition involves 20 households with 83 persons, 1 household with 4 persons involved in the house relocation. After the land acquisition, the cultivated land per capita in the village will be 1.83mu, only 1.8% decreased, and the min. cultivated land per capita in the villagers’ group will be 0.8mu. The land acquisition will have less effect on the village. Among the effected villager groups, only Xiaowu Group will be affected greatly, with the cultivated land decreasing 4.4%. The effect on other villager groups will be less, the land acquisition only accounting for 10% of total contracted land, and the land acquisition is accounting for 90% of total contracted land for a few great effected households. With relative measures adopted, the effect on households will be reduced. Summary of Cultivated Land Acquisition for Yuhe Village Table 5-8 Cultivated land Cultivated land Agricultural Total cultivated Cultivated land per capita Reducing Villager per capita after population land acquisitioned before land proportion Group land acquisition (person) (mu) acquisition (mu) (mu/person (%) (mu/person) Whole 761 1007 17.84 1.32 1.30 1.8 village Ouchong 154 275 11.63 1.79 1.71 4.2 group Xiaowu 168 140 6.21 0.83 0.80 4.4 group Based on the geographic and actual conditions and after study and discussion by two committees of villages, the following measures will be taken for resettlement of PAPs in the village:

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-----Production rehabilitation measures: (1) Based on the geographical advantage of nearing urban, to enlarge the greenhouse vegetable planting area and develop the reversed-season vegetable. (2) Efforts are made to send out labor forces, and provide the training for outgoing forces and employment opportunity for them. Through “Sunlight project” of town government, the resettlers are recommended in prior to participate in the technical training. With the certain ability, they will have the strong competition ability in employment. Efforts are made to connect with near enterprises and carry out ability training with a specific aim, and resettlers are recommended to enterprise for employment in prior. -----Relocation plan: The village committee will arrange the host area at the new rural construction plan area for one household involved in the house relocation according to Huangshan area urban development plan. The leveling of house plot and construction of house will be carried out by resettler self, and the facilities of water and power supply as well as the access will be constructed under unified plan. Planned Host Area in Yuhe 5.5.2 Budget of Production Rehabilitation Village Production rehabilitation for PAPs in the affected area will be realized through compensation in cash, adjustment of agriculture structure, and construction of irrigation works, according to preliminary budget, investment for production rehabilitation will be about 200000 Yuan, mainly including investment on adjustment of agriculture structure and construction of irrigation works, all the investment will be included in land compensation, and the rest fee will be used after discussion through the villager representive meeting. Budget of Production Rehabilitation Table 5-9 Investment on Land Investment on water County Administrativ adjustment of Balance (104 Town (ship) compensation conservancy facility (district) e village agriculture structure Yuan) (104 Yuan) (104 Yuan) (104 Yuan) Taohuatan 41.46 6 35.46 Jingxian Taohuatan Lianhong 115.08 10 105.08 Lundu 173.45 4 169.45 Qingxi Dongkeng 59.30 59.30 Huangsha Yuchun 38.45 38.45 n area Majia 35.63 35.63 Gantang Yuhe 21.65 21.65 Total 485.01 10 10 465.01

5.5.3 Using and Guarantee of Resettlement Compensation A. Using of Compensation Fund Compensation fund for the resettlement will be managed and used by the most primary level economic organization. Generally, compensation for housing and auxiliaries and fees for

98 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） removal will be paid to relocated households, and used for new housing construction and removal of goods of families; according to the difference of land right, land compensation will be managed by town (street), village or villager group, normally used for production rehabilitation, resettlement for surplus labors and construction of infrastructures. (1) Compensation for housing and auxiliaries of full amount will be paid to the relocated households based on relevant policy; (2) The land compensation and resettlement subsidy for labors will be managed and planned as a whole by town (ship), village, villager group, except those for PAPs’ production rehabilitation, after agreed by the relocated villagers’ groups, the fund can be used in the following aspects: -----Invest the local infrastructure, such as strengthening the basic construction of farmland, improving the water conservancy and irrigation works, and enhancing construction of rural roads so as to heighten the traffic capacity; -----Construct the public welfare in the village; -----Invest the secondary and tertiary industry, and increase the employment channels for surplus labors. (3) If necessary, part of land compensation can be used to establish venture fund, which will provide the basic living guarantee for the villagers who lose jobs within three years. B. Guarantee Measures for Compensation Fund (1) If the land compensation will be used for secondary and tertiary industry, at first, the two village committees must carry out intensive survey and analysis to make sure that the market condition is ripe, then apply to the township (street) government for approval, moreover, hold meetings in the affected villager groups for approval through discussion, and finally it is implemented. (2) To ensure that PAPs will not decrease their income level, the management for new enterprises must be strengthened, the checking and auditing periodically shall be carried out so as to solve the practical problems timely (such as technical guide and products selling), and necessary system shall be established so as to guarantee the perfect development of enterprises. (3) If the periphery investment environment changes and the planned investment scheme on secondary and tertiary industry cannot ensure a stable income for PAPs, the first measure is to deposit land compensation and resettlement subsidy into bank, and interest will be allocated to the affected households so as to ensure their living level not decreased. At the same time, for the planned project, evaluation should be carried out again before construction according to the market information of the very year so that to make a decision whether to continue investment or change the investment direction. 5.5.4 Balance of Occupation and Compensation of Cultivated Land Totally 265.73mu cultivated land (garden) will be acquisitioned for the project, according to relevant regulations of “Land Administration Law”, the plan of Balance of

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Occupation and Compensation of Cultivated Land should be implemented, after consulting with land administration departments of county (district), it is determined that the project construction unit would pay fees for cultivation according to relative regulations, and land administration departments of county (district) would take responsible for the balance work. 5.5.5 Reconstruction plan of host area A. Ground leveling For the resettlement, the method of scatter resettlement combined with concentration resettlement is adopted, PAPs can choose the house plot in the villager group, generally, the house plot quality is perfect, housing construction can be carried out right after ground leveled. The PAPs can do it by themselves based on their own willing, or the county (district) PRO will organize ground leveling. For households to have the concentrated resettlement in the new rural construction plan area or to construct houses on the mountain wasteland, the ground leveling will be carried out by qualified unit for needs of plan and difficulty in ground leveling. Fees for ground leveling is temporarily calculated according to 5000 Yuan per household, and the shortage would be made up by the contingency fund. B. Public facilities Water supply: most of PAPs dig a well or have the running water. During survey on project affect, the detailed survey on facilities of well, running water, etc. was carried out, and PAPs should have compensation for those. PAPs are all resettled in their original villagers’ group, and water getting manner is the same with before if the new houses are not far than 500m, so that no investment for water supply is calculated. Power supply: capacity of power supply facilities at each village can meet the needs after resettlement, the power can be taken use as long as 220kV line connected to their houses for reason of that the distance from the host area to power line is 50m to 500m. Broadcast and TV: PAPs can watch TV by installing the receiving devices through their original broadcast facilities, or by installing their original cable TV at the host area through existing TV receiving devices at the host area. C. Roads and traffic According to survey on arrangement of resettlement site: PAPs hope to be resettled near their original living place as that the convenient traffic is the first factor for most of PAPs to choos the host area, thus most of the host areas are arranged along the new roads and near to their original houses, it not only solves the traffic problem, but also provides good condition for their production and living rehabilitation after resettlement. 5.5.6 Public Service Facilities The social facilities such as schools and medical treatment points are not relocated, PAPs can use the original schools, medical treatment points and business net points, so that no more such facility is required. After removal, the distance from host area to the original social service facilities is basically as same as that before.

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5.5.7 Community Management and Housing Construction The existing administration system would not be changed since no outgoing resettlement in the project, and all the villagers’ groups are under administration of the original town (street) and villages. During the house construction, it should take consideration of the living habit and also keeping a room for the further development. The house dismantling and construction of resettlers shall be performed according to their own wishes, and the resettlement organization would pay compensation by replacement price according to original house structure and area. The compensation shall be paid by stages according to the progress of material preparation and house construction. PAPs will be resettled in the original community, and the new houses are no more than 500m away from the original houses. The resettlers can build new house first or dismantle later, and during housing construction period, PAPs can live in the original houses. 5.5.8 Organization and Management of Resettlement Implementation Implementation of resettlement plan will be under the leadership of Project Leading Group, and the project affected county (districts) will designate personnel from their relevant government departments to establish resettlement organization to formulate the resettlement policies, and assume the responsibility for publicization, mobilization, arrangement and implementation of the house relocation and inhabitants resttlement. At the same time, the resettlement organizations are also requested to hear and timely collect and sort the resettlers’ opinions and questions, and timely report such to the superior organizations or the relevant departments and have feedback for the treatment opinions to the resettlers in a shortest time. 5.5.9 Training Plan A. Training for resettlement cadres In Aug. 2006, under the organization of provincial project office, the major cadres of two counties (district) were trained for two days by project resettlement consultation unit, ECIDI in Jingxian and Huangshan area, and got stable basis on theory. In order to execute relative policy of involuntary resettlement better and guarantee the implementation of project resettlement in order, provincial project office has planned to organize related staff in local resettlement organs at different levels to go to other places to learn experiences from successful projects so as to improve the operation quality and management quality of staff in resettlement organs at different levels. B. PAPs’ technical training In order to create a self-reliance and self-development environment for the resettlers and restore or raise the living level of the resettlers in a possible shortest time, the ROs of the county (district) will, together with the township and town, governmental departments relating labor and social security, finance, education, science and technology and agriculture, organize technical and skill training for the resettlers within the area under their jurisdiction. The training should meet the requirement of the local rural economic structure adjustment, the change of the local labor market and the needs of enterprises (which require labors), and the training should also be practical and effective. The training will be mainly in the following aspects. ⑴ Training of rural commonly-used techniques: This is mainly relating to the practical techniques in agricultural and breeding production. The training about planting will focus on

101 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） the knowledge of new type of seeds, keeping productive ability of crops, increasing output and quality of crops, enhancing competitiveness in market, modern farming techniques, nuisanceless and standardized production, etc. The training about production will be mainly in epidemic prevention for livestock and poultry, breeding and management, production of fodders, etc. ⑵ Training before employment: This is mainly about the knowledge of protection of basic entitlement, laws, common knowledge of life in cities and skill of seeking employment. The purpose of this training is to enhance the sense of the affected villagers of obeying the law and statutes and safeguard their own legal rights, increase their ability in handling unexpected events, set up in mind a new sense of employment, understand the way of getting job and increasing their ability to get job. ⑶ Professional skill training: This is mainly to increase the professional skills of the affected villagers. According to the state standard of career classification and professional skill training specification, the training will be arranged to meet the required ability and operation requirement for different trades, job and work position. Based on the local economic characteristics, the training will be in the aspects of architectural construction, domestic service, catering, property management, health care, public security and cleaning, vehicle repairing, etc. ⑷ Training of starting new business: This is mainly for the affected villagers who are willing to start a new business, including the plan-making. It is to encourage and guide them to set up a business of their own, select target for development, set up small enterprise and cultivate local pioneers in enterprising. 5.6 Scheme for Rural Production and Living Facilities The production and living facilities affected by project construction are channels, tractor roads and sidewalks. During project survey and design period, much investigation was carried out on possible affection on local production and living, opinions were solicited from governments at all levels, relative departments, social communities and local residents by the manner of symposia, questionnaire, and most of the opinions were taken into consideration in project design. Through field investigation, the design unit has made the corresponding measures for the affected production and living facilities during design: for the channels interrupted by the road, culverts would be built within the road base or channels parallel to the road within the protective scope would be build so that the channels damaged by the construction would be restored after project construction. The cost for those are covered in budget and is not described herein. 5.7 Rehabilitation Plan for Specific Facilities The special facilities affected by the Project include: 35kV power lines with 3.18 pole/km, 10kV power lines with 16.47 pole/km, 220/380V power lines with 6.9 pole/km, telecom lines with 1.66 pole/km, and telecom cables with 10.64 pole/km. In case that the overhead power and telecom lines run across or parallel to the route, they should be highly raised for crossing the highway by construction of transfer tower and relocation of poles. The underground telecom cables with sleeves embedded under the road whould be designed, or should be relocated if it is in impossible. The rehabilitation plan for specific facilities shall be proposed and constructed by the relevant specific department, and the Project Own would coordinate with the relevant departments for compensation payment.

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6. Cost estimation on compensation for land acquisition The total budget of compensation for the project (S322 Taohuatan~Gantang Section) is 1951.81×104 RMB Yuan (excluding tax), in which the compensation to the rural resettlers is 1450.47×104 RMB Yuan, accounting for 74.3% of the total investment, the compensation for restoring of special items is 181.23×104 RMB Yuan, accounting for 9.3% of the total investment, the cost for others is 142.67×104 RMB Yuan, accounting for 7.3% of the total investment, and the physical contingencies is 177.44×104 RMB Yuan, accounting for 9.1% of the total investment. See Table 6-1 for details. Cost Estimation on Compensation for Land Requisition and Resettlement Table 6-1 No Item Sum (104 Yuan) Percentage (%) I Compensation for rural resettlers 1450.47 74.3 1 Compensation for land acquisition 556.31 1.1 for permanent land acquisition 514.54 1.2 for temporary land occupation 41.77 2 Compensation for houses and auxiliaries 225.37 2.1 For houses 218.02 2.2 For auxiliaries 7.35 3 Compensation for infrastructures in host area 34.32 3.1 Compensation for new house plot 11.70 3.2 Fee for ground leveling 19.50 3.3 Compensation for water and power supply 3.12 4 Compensation for removal 2.97 4.1 Fee for houses relocation 1.17 4.2 Temporary transition fee 1.80 5 Compensation for fruit trees and tomb relocation 629.10 5.1 Compensation for fruit trees 626.20 5.2 Compensation for tomb relocation 2.90 6 Support fee for vulnerable groups 2.40 II Compensation for specific facilities 181.23 9.3 1 For telecom facility 55.19 2 For Power facility 126.04

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To be continued No Item Sum (104 Yuan) Percentage (%) III Other fees 142.67 7.3 1 Administrative fee of construction unit 8.15 2 Implementation management fee 48.95 3 Technical training fee 7.25 4 Supervisory fee 16.32 5 Monitoring and evaluation fee 16.32 6 Planning and design fee 40.79 7 Fee for design file reviewing 4.89 IV Contingency 177.44 9.1 1 Physical contingency 177.44 2 Price contingency 0.00 Static investment （excluding tax） 1951.81 100.0 V Related tax 307.01 1 Fee for reclaiming the cultivated land 126.29 2 Taxation on requisition of cultivated land 28.84 3 Recovery fee of forest vegetation 151.88 Total investment (including tax) 2258.82

6.1 Compiling basis (1) Land Administration Law of the People’s Republic of China (Implemented since January 1, 1999) Provisional Regulations on Taxation for Cultivated Land Occupation of People's Republic of China Implementation Method of Anhui Province on Interim Provisions of the People's Republic of China on Farmland Occupation Tax (4) Notice on Revising for Criteria of Levying Fees for Reclamation of Cultivated Land (Cainongshuizi [1992] No.582) (5) Woodland Administration Regulations in Anhui Province (6) Implementation Method of Levying Fees for Restoration of Forest Vegetation and Management in Anhui Province (7) Notice on Tax for Land Acquisitioned by Construction of Road issued by Anhui Province Finance Bureau (8) Detailed Rules in Implementation of Levying Fee for Reclaiming Cultivated Land and Use Management in Anhui Province (9) Inventory Indexes affected by project and other data provided by design unit.

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6.2 Compensation Principles (1) The standards for land compensation and resettlement subsidy as well as compensation for young crops shall be calculated according to the relative provisions in the Implementation Method of Anhui Province on Land Administration Law of the People’s Republic of China. (2) The compensation standard for houses will be paid according to the replacement in the project effected area, and auxiliaries will be compensated by practical value. (3) Compensation for special facilities will follow the pricinples of “Three Original, (original scope, original standard, original function)”, and the compensation payment will be based on the function restoration. (4) Compensation for scattered trees will be paid according to the practical value or fees for transplanting. 6.3 Budget of Compensation Budget of compensation for the project (S322 Taohuatan-Gantang section) includes: the compensation for rural resettlers, fee for reconstruction of special facilities, other fees, contingency and related tax. The compensation for rural resettlers covers the land compensation, compensation for housing and auxiliaries, compensation for infrastructures at the host area, compensation for removal and subsidy for transition, compensation for scattered fruit trees and timbers, and fee for supporting vulnerable groups. According to requirements of relevant resettlement policies and other regulations, the fees mentioned above are as below: 6.3.1 Compensation for rural resettlers The compensation for rural resettlers is 1450.47 x104 Yuan, of which the land compensation is 556.31x104 Yuan (accounting for 38.4%), compensation for housing and auxiliaries 225.37x104 Yuan (accounting for 15.5%), compensation for infrastructures at the host area 34.32x104 Yuan (accounting for 2.4%), compensation for removal and subsidy for transition 2.97x104 Yuan (accounting for 0.2%) , compensation for fruit trees and tomb relocation 629.10x104 Yuan (accounting for 43.4%) , and fee for supporting vulnerable groups 2.40 x104 Yuan (accounting for 0.2 %). See Table 6-2 for details. List of Compensation for Project Table 6-2 Amount No. Item Percentage （%） （x104 Yuan） 1 Compensation for land acquisition 556.31 38.4 2 Compensation for housing and auxiliaries 225.37 15.5 Compensation for infrastructures 3 34.32 2.4 construction at the host area 4 Compensation for removal 2.97 0.2 Compensation for fruit trees and tomb 5 629.10 43.4 relocation 6 Fee for supporting vulnerable groups 2.40 0.2 Total 1450.47 100.0

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6.3.1.1 Compensation for Land Acquisition (1) Compensation for permanent land acquisition Compensation for permanent land acquisition mainly covers the land compensation, resettlement subsidy and compensation for young crops and woods, and it is calculated according to the compensation standards for each kind of land in Chapter 4, totally 5145.4 thousand yuan. The details are in Table 6-3. (2) Compensation for temporary land occupation Totally 142.88mu land is temporary used for project construction and is of dry land and forest land as well as a few of paddy land. According to compensation criteria for this kind of land in Chapter 4, compensation is 417.7 thousand Yuan for project temporary used land. See Table 6-4 for details.

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Summary of Compensation for Permanent Land Acquisition in the Project Table 6-3 Compensation for young crops and Land compensation Resettlement subsidy Quantity woods Total compensation No. Item （mu） Unit price Amount Unit price Amount Unit price Amount (104 Yuan) （Yuan/mu） （104 Yuan） （Yuan/mu） （104 Yuan） （Yuan/mu） (104 Yuan) 1 Cultivated land 156.69 104.28 69.52 8.69 182.49 1.1 Paddy field 128.25 6960 89.26 4640 59.51 580 7.44 156.21 1.2 Dry land 28.44 5280 15.02 3520 10.01 440 1.25 26.28 2 Tea garden 109.04 6125 66.79 2625 28.62 875 9.54 104.95 3 Fish pond 4.86 8400 4.08 4200 2.04 6.12 4 Forest land 371.63 193.67 16.03 10.91 220.61 4.1 Bamboo forest 30.50 5760 17.57 1080 3.29 720 2.20 23.06 4.2 Woodland 169.93 6000 101.96 450 7.65 360 6.12 115.73 4.3 Shrub forest 166.56 4200 69.96 180 3.00 72 1.20 74.16 4.4 Nursery 4.64 9000 4.18 4500 2.09 3000 1.39 7.66 5 Other waste land 2.12 1760 0.37 0.37 Total 644.34 369.19 116.21 29.14 514.54

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Summary of Compensation for Temporay Land Occupation Table 6-4 Compensation for loss of one season Compensation for land loss Reclamation fee Amount young crop Total compensation No. Sort (mu) Unit price Amount Unit price Amount Unit price Amount (104 Yuan) （Yuan/mu） （104 Yuan） （Yuan/mu） （104 Yuan） （Yuan/mu） （104 Yuan） 1 Cultivated land51.54 2.34 9.39 10.31 22.04 1.1 Paddy field 5.59 580 0.32 2320 1.30 2000 1.12 2.74 1.2 Dry land 45.95 440 2.02 1760 8.09 2000 9.19 19.30 2 Forest land 91.34 360 3.29 300 2.74 1500 13.70 19.73 Total 142.88 5.63 12.13 24.01 41.77

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6.3.1.2 Compensation standards for houses and auxiliaries The compensation for housing and auxiliaries is 2253.7 thousand Yuan in total. Of which compensation for housing is 2180.2 thousand Yuan (accounting for 96.7% ) and for auxiliaries is 73.6 thousand Yuan (accounting for 3.3%). The details are in Table 6-5. Compensation Standards for Each Kind of House and Auxiliaries Table 6-5 Unit price No. Item Unit Quantity Amount（104 Yuan） （Yuan/unit） 1 House 218.02 1.1 Brick-concrete m2 1070.10 328 35.10 1.2 Brick-wood m2 6219.50 270 167.93 1.3 Earth-wood m2 723.70 200 14.47 1.4 Simple house m2 51.50 100 0.52 2 Auxiliaries 7.35 2.1 Sty and lavatory m2 330.60 50 1.65 2.2 Simple shed m2 345.00 60 2.07 2.3 Brick fence m2 135.00 30 0.41 2.4 Cement ground m2 982.30 20 1.96 2.5 Well ea. 23 500 1.15 2.6 Tele. set 7 160 0.11 Total 225.37

6.3.1.3 Compensation for infrastructures in the host area Compensation for infrastructures covers the compensation for new house plot, ground leveling, and water and power supply facilities, and totally 39 households with 150 persons are invovled. According to the compensation standard in Chapter 4, the compensation for infrastructures is 343.2 thousand Yuan in total, of which the compensation for new house plot is 39 (households) ×3000 (yuan/household) =117.0 thousand Yuan, the ground leveling 39(households)×5000(yuan/household) =195.0 thousand Yuan, and water and power supply facilities 39(households)×800 (yuan/household) =31.2 thousand Yuan. 6.3.1.4 Compensation for removal and transition Compensation for private housing removal will be 300 yuan per household, totally 11.7 thousand yuan for housing removal. The resettlement subsidy will be 120 yuan for each person, totally 18.0 thousand Yuan. 6.3.1.5 Compensation for scattered fruit trees and timbers Totally 284253 scattered trees of all sorts will be cut for project construction, of which woods are 284233, the fruit trees 20 and tomb relocation 58. According to the compensation criteria in Chapter 4, the compensation for fruit trees and other trees is 6262.0 thousand Yuan in total, of which 6260.8 thousand Yuan for woods and 1200 Yuan for the fruit trees and 29000 Yuan for tomb relocation.

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6.3.1.6 Fees to supporting vulnerable groups Fees is mainly used to support the vulnerable groups for their living. By the site survey, no vulnerable group is discovered. But consideration of unpredictable factors of natural calamity, etc. during the resettlement, the calculated fee is 24.0 thousand Yuan by taking 20% of relocation households as the vulnerable groups and with compensation of 3000 Yuan/household. 6.3.2 Compensation for reconstruction of specific facilities According to the compensation unit in Chapter 4, the calculated fee is 1812.3 thousand yuan. The details are in Table 6-6. Summary of Compensation for Reconstruction of Specific Facilities Table 6-6 Compensation Compensation amount Item Unit Amount criteria (104 Yuan) （Yuan/km） 1. Telegram line 55.19 1.1. Telegram cable Pole/km 1.66 12000 1.99 1.2. Telegram optical fiber cable Pole/km 10.64 50000 53.20 2. Power line 126.04 2.1. 35kV power line Pole/km 3.18 80000 25.44 2.2. 10kV power line Pole/km 16.47 50000 82.35 2.3. 220V/380V power line Pole/km 6.90 25000 17.25 2.4. Transformer set 2 5000 1.00 Total 181.23

6.3.3 Other fees Other fees include the administrative fee of construction unit, implementation management fee, technical training fee, supervisory fee, monitoring and evaluation fee, planning and design fee, and fee of design file reviewing. (1) Administrative fee of construction unit It is 0.5% of the sum through 6.3.1-6.3.2, totally 81.5 thousand Yuan, which is mainly used for administrative fees of construction unit during resettlement implementation. (2) Implementation management fee It is 3% of the sum through 6.3.1-6.3.2, totally 489.5 thousand Yuan, which is mainly used for management fee of implementation unit during land acquisition and resettlement. (3) Technique training fees It is 0.5% of sum from 6.3.1, totally 72.5 thousand yuan, which is used for technical training for PAPs.

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(4) Fees for supervision It is 1.0% of sum through 6.3.1~6.3.2, totally 163.2 thousand yuan, which is used for the supervisory unit to monitor the resettlement schedule, quality and fund control. (5) Fees for monitoring and evaluation It is 1.0% of sum through 6.3.1~6.3.2, totally 163.2 thousand yuan, which is used for monitoring work by the external monitoring unit during resettlement. (6) Fees for plan and design It is 2.5% of sum through 6.3.1~6.3.2, totally 407.9 thousand yuan, which is mainly used for design unit at the primary stage, investigation organs and local governments to participate the design of land acquisition and housing relocation as well as survey and compilation. (7) Fees for file reviewing It is 3% of sum through 6.3.1~6.3.2, totally 48.9 thousand yuan, which is mainly used for the consulting unit and authority department to carry out the consulting and reviewing on the plan and design results. 6.3.4 Contingency It will be 10% of sum through 6.3.1.~6.3.3, which is used for the unexpected work. 6.3.5 Interest of loan during construction period According to consulation with the project design unit, no interest of loan will be counted, but is listed in the budget estimation by the design unit. 6.3.6 Relevant tax (1) Tax on land occupation According to the Notice of Anhui Province on Regulations of Taxation on Cultivated Land Occupation, the occupation tax shall be paid for occupation of the cultivated land, garden and water surface for breed aquatics as well as the temporary land occupation more than two years, and according to relevant regulations of Notice on Revising for Criteria of Levying Fees for Reclamation of Cultivated Land, (Cainongshuizi [1992] No.582), the tax on land occupation for road construction will be 1066 Yuan/mu, totally 288.4 thousand yuan. (2) Compensation for land reclamation According to the Notice of Anhui Province on Regulations of Taxation on Cultivated Land Occupation, the cultivated land effected by the project in Jingxian and Huangshan area belongs to Grade III, with tax levying criteria of 7 Yuan/m2, the compensation is 4667 Yuan/mu, totally 1262.9 thousand yuan. (3) Vegetation recovery compensation According to relevant regulations in Implementation Method of Levying Fees for Restoration of Forest Vegetation and Management in Anhui Province, the vegetation recovery compensation criteria will be 4000 Yuan/mu for bamboo forest, woodland and nursery, and

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2000 Yuan/mu for shrub forest land, totally 1518.8 thousand Yuan. 6.4 Total Budget of Compensation Total budget of compensation for the project is 22588.2 thousand yuan (including relevant tax 3070.1 thousand Yuan), which is listed into total project budget, and will be charged by project construction unit. The details of the items are in Table 6-7.

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Budget of Compensation Table 6-7 Total Jingxian Huangshan area No. Item Unit Sum Sum Sum Amount Amount Unit Amount Unit (104 Yuan) (104 Yuan) (104 Yuan) I Compensation for rural resettlers 1450.47 303.70 1146.77 Compensation for land acquisition and （I） 556.31 178.08 378.23 occupation 1 Permanent land acquisition 644.34 514.54 165.68 165.37 478.66 349.17 1.1 Cultivated land mu 156.69 182.48 109.90 128.92 46.79 53.56 1.1.1 Paddy field mu 128.25 156.21 93.11 12180 113.41 35.14 12180 42.80 1.1.2 Dry land mu 28.44 26.27 16.79 9240 15.51 11.65 9240 10.76 1.2 Garden land（tea garden） mu 109.04 104.96 19.60 9625 18.87 89.44 9625 86.09 1.3 Fish pond mu 4.86 6.12 12600 4.86 12600 6.12 1.4 Woodland mu 371.63 220.61 34.06 17.21 337.57 203.40 1.4.1 Bamboo mu 30.50 23.06 7560 30.50 7560 23.06 1.4.2 Woods mu 169.93 115.73 5.12 6810 3.49 164.81 6810 112.24 1.4.3 Shrub mu 166.56 74.16 28.25 4452 12.58 138.31 4452 61.58 1.4.4 Nursery mu 4.64 7.66 0.69 16500 1.14 3.95 16500 6.52 1.5 Other wasteland mu 2.12 0.37 2.12 1760 0.37 1760 2 Temporary land occupation 142.88 41.77 51.32 12.71 91.56 29.06 2.1 Cultivated land mu 51.54 22.04 6.07 2.94 45.47 19.10 2.1.1 Paddy field mu 5.59 2.74 5.59 4900 2.74 4900 2.1.2 Dry land mu 45.95 19.30 0.48 4200 0.20 45.47 4200 19.10 2.2 Forest land mu 91.34 19.73 45.25 2160 9.77 46.09 2160 9.96

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(To be continued) Total Jingxian Huangshan area No. Item Unit Sum Sum Sum Amount Amount Unit Amount Unit (104 Yuan) (104 Yuan) (104 Yuan) (II) Compensation for house and auxiliaries 225.37 94.78 130.59 1.1 Houses m2 8064.80 218.02 3268.92 92.50 4795.88 125.52 1.1.1 Brick-concrete m2 1070.10 35.10 929.90 328 30.50 140.20 328 4.60 1.1.2 Brick-wood m2 6219.50 167.93 2173.92 270 58.70 4045.58 270 109.23 1.3 Earth-wood house m2 723.70 14.47 165.10 200 3.30 558.60 200 11.17 1.4 Simple house m2 51.50 0.52 100 51.50 100 0.52 2 Auxiliaries 7.35 2.28 5.07 2.1 Sty and lavatory m2 330.60 1.65 69.80 50 0.35 260.80 50 1.30 2.2 Simple shed m2 345.00 2.07 60 345.00 60 2.07 2.3 Brick fence m2 135.00 0.41 135.00 30 0.41 30 2.4 Cement ground m2 982.30 1.96 561.90 20 1.12 420.40 20 0.84 2.5 Well ea. 23 1.15 8 500 0.40 15 500 0.75 2.6 Tele. set 7 0.11 160 7 160 0.11 Compensation for infrastructures （III） 34.32 14.08 20.24 construction in host area household 1 Compensation for new house plot 39 11.70 16 3000 4.80 23 3000 6.90

2 Fee for ground leveling household 39 19.50 16 5000 8.00 23 5000 11.50 3 Compensation for water and power supply household 39 3.12 16 800 1.28 23 800 1.84 Compensation for removal and subsidy for （IV） 2.97 1.18 1.79 transitional period 1 Fee for houses Relocation Household 39 1.17 16 300 0.48 23 300 0.69 2 Subsidy for living during transition period Person 150 1.80 58 120 0.70 92 120 1.10

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(To be continued) Total Jingxian Huangshan area No. Item Unit Sum Sum Sum Amount Amount Unit Amount Unit (104 Yuan) (104 Yuan) (104 Yuan) Compensation for fruit trees and tomb （V） 629.10 14.68 614.42 relocation 1 Compensation for fruit trees 284253 626.20 7146 12.38 277107 613.82 1.1 Woods ea. 284233 626.08 7141 12.35 277092 613.73 1.1.1 Below 10cm ea. 113305 113.30 4533 10 4.53 108772 10 108.77 1.1.2 Above 10cm ea. 170928 512.78 2608 30 7.82 168320 30 504.96 1.2 Fruit tress ea. 20 0.12 5 60 0.03 15 60 0.09 2 Tomb relocation ea. 58 2.90 46 500 2.30 12 500 0.60 （VI） Support fee for vulnerable groups household 8 2.40 3 3000 0.90 5 3000 1.50 Compensation for reconstruction of II 181.23 73.03 108.20 special facilities （I） Compensation for telecom facility 55.19 24.78 30.41 1 Telecom cable Pole/km 1.66 1.99 0.32 12000 0.38 1.34 12000 1.61 2 Telecom optical fiber cable Pole/km 10.64 53.20 4.88 50000 24.40 5.76 50000 28.80 （II） Compensation for power facilities 126.04 48.25 77.79 1 35kV power line Pole/km 3.18 25.44 80000 3.18 80000 25.44 2 10kV power line Pole/km 16.47 82.35 9.55 50000 47.75 6.92 50000 34.60 3 220V/380V power line Pole/km 6.90 17.25 25000 6.90 25000 17.25 4 Transformer set 2 1.00 1 5000 0.50 1 5000 0.50

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(To be continued) Total Jingxian Huangshan area No. Item Unit Sum Sum Sum Amount Amount Unit Amount Unit (104 Yuan) (104 Yuan) (104 Yuan) III Other fees 142.67 32.79 109.88 1 Administrative fee of construction unit0.5% 8.15 1.88 6.27

2 Implementation management fee 3.0% 48.95 11.30 37.65 3 Technical training fee 0.5% 7.25 1.52 5.73 4 Supervisory fee 1.0% 16.32 3.77 12.55 5 Monitoring and evaluation fee 1.0% 16.32 3.77 12.55 6 Planning and design fee 2.5% 40.79 9.42 31.37 7 Fee for design file reviewing 0.3% 4.89 1.13 3.76 IV Contingency 177.44 40.95 136.49 1 Physical contingency 10% 177.44 40.95 136.49 2 Price contingency Total static investment （ excluding 1951.81 450.47 1501.34 tax） V Related tax 307.01 100.32 206.69 1 Fee for reclaiming the cultivated land 126.29 129.50 4667 60.44 141.09 4667 65.85 Taxation on acquisition of cultivated 2 28.84 129.50 1066 13.80 141.09 1066 15.04 land 3 Recovery fee of forest vegetation 151.88 26.08 125.80 3.1 Bamboo and woods 116.71 50.37 4000 20.15 241.40 4000 96.56 3.2 Shrub forest 33.31 28.25 2000 5.65 138.31 2000 27.66 3.3 Nursery 1.86 0.69 4000 0.28 3.95 4000 1.58 Static investment (including tax) 2258.82 550.79 1708.03

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7. RESETTLEMENT IMPLEMENTATION PLAN 7.1 Implementation Procedures A. Land acquisition and compensation The land acquisition and compensation will be completed under the coordination with relative organizations, and the typical procedures are as followings: (1) The design institute is in charge of the preparation of the applicable drawings for permission of the land acquisition. On these drawings, the scales and areas of the land acquisition and houses remova shall be defined. (2) The Project Owner will apply for planning license and red-line map to planning departments, and apply for approval of land administration bureau. (3) Application for approval. (4) Project Resettlement Office signs the compensation agreement with county (district) resettlement office. (5) The county (district) resettlement office negotiates with the related town(ship), village and the county land management department on the land acquisition, signs “Land acquisition Agreement”, and goes through the formalities for land use. (6) Transferring compensation fees. (7) Go through legal formalities. (8) Implementation of land acquisition. In addition, the use of compensation fees for land acquisition (including compensation and subsidy) is as follows: for villages resettled by cash compensation, the subsidy will be paid directly to the affected individuals by cash, and the land compensation of individuals and the collective land will be used for the investment in agricultural production and infrastructure construction. For villages to reclaim land, most of the fees is used in the investment for improving the land, reforming the low and middle-output farmland, adjusting the agricultural structure, and also for paying the living subsidy during transitional period. The rest is used for developing the collective production (constructing water conservancy facilities) and improving the village infrastructures, and land will be adjusted within the scope of the whole village. For those without resettlement, the resettlement subsidy will be directely paid to individuals. Generally, besides fund used for developing the land resource and constructing infrastructures, the rest fund will be kept in the village mainly for welfare, which can be shared by most of the villagers. If someone wants to get a loan to open small enterprise (e.g. open a small shop), he must get the approval of the village representatives committee, then he can get a loan from the rest of the land acquisition fees, otherwise the villager has to get a loan from the local bank. B. Production resettlement and restoration The production resettlement and restoration shall be implemented by the effected village committee, the procedures are as followings:

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(1) Hold the villagers’ meetings or villagers’ representatives' conferences to study and compile the overall plan of land reclaiming and adjustment as well as land allocation and production restoration in the villages with resettlement task. (2) Promulgate the overall plan of land reclaiming and adjustment as well as land allocation and production restoration, and further collect the opinions of the whole villagers in the group and resettlers. (3) Adjustment and allocation of land; (4) Negotiate with enterprises ready to employ surplus on the job arrangement and sign “Labor Force Resettlement Agreement”, and work out a detailed plan of production rehabilitation and labor force resettlement. (5) Announce the resettlement plan of labor forces and a list of resettlers so as to be under the supervision of the villagers. (6) Employment of labor forces. C. Houses relocation and inhabitants rsettlement The procedures for the house relocation and resettlement should be as followings: (1) Project design units provides the scope of housing removal; (2) County (district) Project Resettlement Office and design units, together with the relative town(ship)s and village committee (resident committee), will carry out the survey on the house quantity and quality. (3) County (district) Project Resettlement Office, consults with the relative towns (street) and village committee as well as households on the compensation criteria of houses and the auxiliaries. (4) County (district) Project Resettlemen Office announces the quantity of relocation houses, compensation criteria, and time schedule for housing removal and reconstruction; and inquire comments from PAPs. (5) County (district) Project Resettlement Office signs agreements with resettlers on housing removal and the compensation. (6) Town(ship) and village committee (resident committee) provides the host area and new house plot, and inquires comments from resettlers. (7) County (district) Project Resettlement Office goes through the formalities for the new house plot. (8) County (district) Project Resettlement Office entrusts the relevant construction unit to carry out the work of “Water and power supply, access and ground leveling” (or the ground leveling is carried out by households), and signs agreement with households on housing removal. (9) PAPs is paid with the compensation fees. (10) PAPs rebuild their new houses.

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(11) PAPs move into their new houses. (12) PAPs dismantle their old houses. D. Reconstruction of specific facilities (1) The project design unit provides the affect scope of specific facilities. (2) County (district) Project resettlement office and the responsible department of the specific items carries out the survey on the quantity and grade of the items. (3) County (district) project resettlement office entrusts the responsible departments to prepare the reconstruction plan according to the resettlement plan and the road route. (4) County (district) project resettlement office defines the compensation criteria after consulting with the responsible departments, and signs “Agreement on compensation for reconstruction of specific facilities”. (5) County (district) project resettlement office entrusts the responsible departments to implement the reconstruction of the specific facilities. (6) The specific facilities are put into operation. 7.2 Schedule The land requisition and resettlement will be carried out according to the project construction schedule and following principles: (1) The house dismantling will be carried in steps and must be completed before starting of the project construction. (2) The resettlers shall be noticed at least 3 months before, and resettlers shall have at least 4 months to build their houses from the noticed date to the dead line of house removing. The affected persons can stay in the old houses before the completing the construction of new ones. (3) It shall have the full negotiation with resettlers on the construction time of houses, that can be prolonged properly if necessary. (4) The land requisition shall be completed before the starting of construction for each lot. (5) The land adjustment and allotting shall be completed in time at the change seasons of crops. (6) The arrangement for labor forces shall be completed before the land acquisition (7) The restoration of each special facility shall be completed before starting of each project construction or removing of resettlers. According to overall schedule, the schedule of the land requisition and removing is decided, Table 7-1 for details.

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Planned Schedule of Land requisition and Removing for Project Table 7-1 Description Planned Schedule I. Land requisition 1. Determination of land requisition objectives 2007.2 2. Preparation of inventory survey on the land to be requisitioned, and conducting survey 2007.5~2007.6 3. Consultation and determination of compensation criteria of land requisition 2007.7~2007.9 4. Payment of land acquisition compensation 2007.9~2007.11 5. Official formality of land acquisition 2007.11~2007.12 II. Production restoration and rehabilitation 1. Construction of water conservancy project 2007.7~2007.8 2. Reclaiming land, reforming land or adjusting agriculture structure (sort of crops) 2007.7~2007.10 3.Consultation on land re-allocation and distribution 2007.7~2007.9 4. Re-allocation and land distribution 2007.10~2007.11 5. Resettlement of labors Before 2007.12 III. House dismantling and rebuilding 1. Determination of house relocation objectives 2007.2 2. Survey of inventory data of houses to be dismantled 2007.5~2007.6 3. Consultation and determination of house compensation criteria 2007.7~2007.9 4. Payment of housing compensation 2007.9~2007.11 5. Selection of house plots 2007.7~2007.11 6. Land acquisition for house plots 2007.7~200711 7. Ground leveling of house plots 2007.7~2007.11 8. Building new houses 2007.9~2008.7 9. Moving into new houses Before 2008.5 10. Dismantling of old houses Before 2008.5 IV. Restoring and rebuilding special items Before 2008.12

7.3 Fund Flow and Allocation Scheme 7.3.1 Fund Flow According to compensation policy and criteria in RAP, Project Office will sign agreement of “Land Acquisition and Housing Relocation for Road Construction at S105Chaohu~Wujiang Section” with County (district) Resettlement Office. Then based on the compensation fee determined in the agreement as well as resettlement implementation progress, compensation fees will be paid to County (district) Resettlement Office through bank by stages. County (district) Resettlement Office will sign “Land Compensation Agreement” with local Land Administration Bureau, and the county (district) Land Administration Bureau will sign compensation agreement on land acquisition and ground attachments with affected towns(street), village committees; at the same time, County (district) Resettlement Office will sign “Compensation Agreement on Project Affected Housing and Auxiliaries” with PAPs, and sign “Compensation Contact for recovery or reconstruction of specific facilities”. According to the compensation items, amount and payment schedule, the payment of the compensation will be transferred via banks by County (district) Resettlement Office to the resettlement work groups of affected towns (streets), and the latter will pay the

120 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） compensation to the village committes or villagers’ groups. The compensation for the ground attachments will be paid to individuals via village committee, the compensation for housing relocation will be directely paid to the relocated households by County (district) Resettlement Office, and the compensation for relocation or reconstruction of specific facilities will be paid via the bank to the respective departments by County (district) Resettlement Office. The fund flow chart is as follow. Fund Flow

→ → → County (district) Village committee or villager Land compensation Project office → Town (street) → resettlement office group

→ → → County (district) Town Village committee or villager Resettlement subsidy Project office → → resettlement office (street) group

Compensation for young crops → County (district) Village Resettlement → → Project office → Town (street) → → and auxiliaries resettlement office committee household

→ Compensation for housing and → → County (district) Relocation Project office → Town (street)→→ auxiliaries resettlement office households

→ Compensation for removal and → → County (district) Relocation households or related living subsidy during transitional Project office → Town (street) → resettlement office units period

→ Compensation for infrastructures → → County (district) Relocation households or Project office → Town (street) → construction in host area resettlement office construction unit

→ → → County (district) Compensation for scattered trees Project office → Town (street) → Owner resettlement office

→ Compensation for production and → → County (district) Project office → Town (street) or villagers’ group living facilities resettlement office

→ Compensation for business lose of → → County (district) Project office → Related unit or owner enterprises and individuals resettlement office

→ Compensation for reconstruction → → County (district) Responsible

Resettlement compensation Resettlement Project office → → Construction unit of specific facilities resettlement office department

→ → → County (district) Vulnerable Fees to support vulnerable groups Project office → Town (street)→ resettlement office groups

→ Fees for plan and design → Project office → Design unit

→ Fees for monitoring and → → Project office Monitoring and evaluation unit evaluation

→ Fees for technical training → Project office → Training unite

→ Fees for management of → → Project office Resettlement implementation organs implementation

→ Administrative fee of construction → Project office unit

→ Fee for reviewing of design file → Project office → Consulting and reviewing unit

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7.3.2 Plan of Payment by Transfer A. Principles (1) All expenditures for land acquisition and house relocation should be listed into the project cost estimation, and the compensation for land acquisition, house relocation and other fees should be paid to the relevant units and individuals by the county (district) resettlement office. (2) Land compensation will be paid via bank by County (district) PRO to the administrative villages, on principles, the administrative villages will use the fund for production rehabilitation of the project impacted villager groups or those receiving resettlers. (3) The compensation fees shall paid to relocated households before construction of the new houses. If the compensation is paid in installment, the final payment shall be paid before the completion of house construction. (4) The compensation for land should be paid three months before land acquisition. (5) In order to ensure the resettlement to be implemented successully, PRO should jointly establish specific financial institutions at all levels and corresponding finance supervision institutions to ensure the payment to be transferred in time. B. Institutions assuming financial responsibility for resettlement (1) The institutions responsible for rural land acquisition compensation include County (district) Resettlement Office, Land Administration Bureau, town (ship)s and village committees. (2) The institution responsible for compensation of rural land acquisition and special facilities is the specific financial organs in County (district) Resettlement Office. (3) The payment of resettlement fund will be transferred from top institutions to lower institutions so as to ensure the payment to be transferred and used correctly, and each institution should strictly follow the financial settlement and audict system, and periodically check and report the actual payment and use of the compensation. (4) Ensure that the compensation will be used in a planned way and for specific items, and shall not be carved up or used for other purpose by any middle organizations.

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8. Institutional Organization 8.1 Establishing of Organizations In order to prepare this RAP and ensure smooth implementation of the resettlement work to meet the expected result, a series of resettlement organizations should be established for planning, coordination and supervision of the resettlement activities. The following organizations will be established for this project, which will be responsible for the land requisition, house relocation and inhabitant resettlement. A. Project Resettlement Leading Group (PRLG) B. Project Resettlement Office (PRO) C. City Project Resettlement Leading Group (city PRO) D. County (District) Project Resettlement Leading Group E. County (District) Project Resettlement Office (county (district)RO) F. Town (Subdistrict) Resettlement Office G. Villagers’ (Neighborhood) Committee and Villagers Group H. Project design unit I. Independent External Monitoring and Evaluation Organization 8.2 Structure and Responsibility of Organization A Project Resettlement Leading Group In order to ensure successful resettlement, a Project Resettlement Leading Group is established, which is staffed with the responsible leaders from Anhui Provincial Communication Department, Anhui WB-Loaned Project Execution Office and Anhui Provincial Highway Administration. Its main responsibility is to strengthen the leadership over the project, take charge of resettlement policy-making and coordination among all resettlement organizations at different levels. An office under the Leading Group is set with the Pre-stage Project Sector of Anhui Provincial Highway Administration, which is in charge of daily routines of the Group. B Project Resettlement Office The Office, consisting of the leaders from Anhui Provincial Communication Department and Anhui Provincial Highway Administration acts as the managerial organization of the resettlement work, with the following responsibility. ⑴ Formulating the resettlement policy for the porject, ⑵ Entrusting the design unit to define the project-affected scope, carrying out the survey on project-affected inventory in kind and taking the charge of filing the data, ⑶ Applying for land use permit for planning and land use permit for construction, ⑷ Professional training of key staff from various resttlement offices,

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⑸ Organizing and coordinate preparation of the RAP and relevant implementation activities, ⑹ Resettlement funds management and allocation, and supervising use of the fund, ⑺ Instructing, coordinating and supervising the resettlement implementation activities and progress, ⑻ Internal supervision activities and preparation of internal monitoring report, ⑼ Making decisions on engaging the external E&M unit for the project and assisting in external monitoring activities. C City Project Resettlement Leading Group The Group, headed by the responsible leader of the city people’s government, is composed of the leaders of communication department, highway administration, land resources bureau, tourism bureau of the city government and the leaders from the affected counties (districts) communication bureaus. Its main responsibility is to strengthen the leadership in the process of resettlement implementation, coordinate the resettlement work among different government departments concerned and take care of relationship between the state, the collective and individual so as to ensure smooth construction of main works, land acquisition and resettlement. D County (District) Project Resettlement Leading Group The Office of different affected counties and districts, headed by the responsible leaders of the relevant counties and districts, is composed of the leaders from communication, highway, finance, urban construction and power supply bureaus. The Office is mainly responsible for strengthening the leadership over the resettlement processes carried out under their jurisdiction, coordinating the resettlement work among different government departments concerned and taking care of relationship between the state, the collective and individual so as to ensure smooth construction of main works, land acquisition and resettlement. E County (District) Project Resettlement Office The Office at different counties and districts, composed of specially assigned cadres from communication department of relvant counties and districts, is set to coordinate the work with the local land administrations, undertaking the following responsibilities: ⑴ Assisting the design unit to define the project affecting scope, carrying out the survey on project-affected inventory in kind and taking the charge of filing the data, ⑵ Assisting in preparation of the RAP and assuming responsibility for resettlement implementation, ⑶ Selecting key resettlement staff to receive professional training, ⑷ Organizing public consultation and publicize the resettlement policies, ⑸ Instructing resettlement-related organzations or units, coordinating and supervising the implementation activities and progress,

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⑹ Taking the charge of resettlement work, and paying the resettlement funds according to relative agreements, ⑺ Helping get land from the individual business households or adjust land for the resettlers who are willing to have farming-oriented resettlement, ⑻ Implementing internal monitor activities, preparing internal monitoring report and reporting to the Project Resettlement Office regularly. F Town (Subdistrict) Resettlement Office Town (Subdistrict) Resettlement Office is led by responsible leaders of the town (subdistrict), and composed of the cadres from land administration, police station, civil affair station and forestry management station. The main responsibility covers: ⑴ Participating in project impacts survey and assisting in preparation of RAP, ⑵ Organizing public participation and publicizing the resettlement policies, ⑶ Implementing, supervising ,monitoring and recording all resettlement activities within the town and Subdistrict. ⑷ Handling relevant formalities for removal and reconstruction of housing, ⑸ Payment and management of land compensation fund, ⑹ Supervising the land acquisition, relocation of houses and appendages, and trnasition, ⑺ Report to the country land resource bureau and country resettlement office the progress of land acquisition, housing removal and resettlement, ⑻ Coordinating and handling contradictions and problems encountered in resettlement implementation. G Villagers’ (Neighborhood) Committee and Villagers Group The working group of villagers’ (neighborhood) committees and villagers groups is composed of village cardres, and is reponsible for: ⑴ Participating in socio-economic survey and project impact survey, ⑵ Organizing public consultation and publicizing the resettlement policies, ⑶ Selecting host site for resettlement, and allocating house plots for resettled households, ⑷ Executing land reclamation, land adjustment and re-allocation, organizing resettlement activity such as production development, ⑸ Managing and allocating compensation funds, ⑹ Reporting the resettlers’ comments and proposals to higher authorities, ⑺ Reporting resettlement implementation progress, ⑻ Helping the impoverished families in resettlement.

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H Project design unit The project design unit is Anhui Provincial Highway Investigation and Design Institute. The main responsibility of the unit is for: ⑴ Project design, ⑵ Defining the scope of land acquisition and house reloction, ⑶ Organizing survy on invetory in kind of land acquisition and house relocation caused by the project construction. I Independent External Monitoring and Evaluation Organization The independent external monitoring and evaluation organization for this project is Engineering Resettlement Research Institute of Anhui Communication Technique Collage, whose main responsibility is for: ⑴ As independent monitoring and evaluation organization, observing every aspect of the Resettlement Action Plan and its implementation and submitting resettlement M&E report to the World Bank through the Project Resettlement Office. The responsibility of this organization will be detailed in the chapter of Independent External Monitoring and Evaluation, ⑵ Provide technical consulting services to the Project Resettlement Office in data collection and processing. 8.3 Staffing A Project resettlement leading and managing organizations In order to ensure the smooth implementation of resettlement as well as the project construction, the Project Office has designated specific personnel for land acquisition and house relocation and inhabitant resettlement, with a mechanism in which all the message and information can be transmitted from the lower level to upper level. The resettlement staff is composed of professionals and administrative persons who are qualified in professional and managerial skills and experienced in resettlement work. The relevant counties, subdistricts and towns have also established their own resettlement organizations and staffed with professionals. . Leaders of Project Resettlement Leading and Managing Organizations Table 8-1 Name of staff Work with Position In the project, work as organization Luo Ning Provincial communication department Deputy director Group head

PRLG Cheng Yuehui Provincial highway administration Director Deputy group head Capital construction Qin Qing Provincial communication department Deputy group head division head Cheng Yuehui Provincial highway administration Director Office director Project Office Hy Wenyou Provincial highway administration Assistant director Executive deputy director Zhang Provincial highway administration Deputy director Office director PRO Houzhong Hu Wenyou Provincial highway administration Assistant director Deputy director

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B Project resettlement monitoring and evaluation organization Anhui Provincial WB-Loaned Project Execution Office will entrust Engineering Resettlement Research Institute of Anhui Communication Technique Collage to work as resettlement monitoring unit for the project. The institute will provide technical assistance to the PRO and conduct survey on resettlement work and on the living standard of the project-affected people, and carry out all the required basic monitoring according to the relevant regulations. The institute, at present, has a team of qualified experts and professionals at different levels, who have previously engaged in the resettlement M&E work for the IBRD-loaned An-He Highway Project (Anhui Provinicial Highway Project I) and Tong-Tang Highway Project (Anhui Provinicial Highway Project II), among whom there are two persons having been trained at the WB-sponsored resettlement M&E workshop and possess the training certificate. This institute has now set Resettlement M&E Work Group for Anhui Provinicial Highway Project III, and has been engaged in the resettlement. The key staff of the work group is listed in Table 8-2, and more persons will be added during the working peak period, if needed.

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Key M&E Staff of the Work Group Table 8-2 Profes- Name Work experience Duty in project sional Title

Dou Xiao- Profes- sor Resettlement expert, director of Anhui Communication Technique College, professor, director Approval guang of Engineering Resettlement Research Institute of Anhui Communication Technique Collage, Instructor of Master-course students of Management College of Anhui University. Mr. Dou enjoys the special allowance of Anhui Provincial Government and is “young leading person of science and technology”. He is standing member of Anhui Provincial Archive Association, member of Qualification Appraisal Committee for High-rank Archive Professionals, expert-bank member of professional qualification assessment committee, executive member of China Society of Archive Management, member of Committee of Basic Theory and History of Archives, specially-invited researcher of China Senior Professors Association, special researcher of Cadre Training Center of State Archive Administration, part-time professor of Anhui Industrial and Commercial Management College (MBA), Anhui Provincial Advisory Committee for Decision Making, deputy director of Archive Subject Teaching Steering Committee of Ministry of Education. He will be person-in-charge for independent resettlement M&E for the IBRD-loaned Anhui Highway Project III.

Yu Gao- Asso-ciate Resettlement expert, deputy director of Anhui Communication Technique College, associated Review ming d professor, deputy director of Engineering Resettlement Research Institute of Anhui profess-sor Communication Technique Collage, executive member Management Sub-committee of National Communication Professional and Technical Education Association, deputy director of Anhui Communication Professional and Technical Education Association, Standing member of Anhui Highway Society, deputy director of Anhui Road Engineering Committee, person-in-charge for external resettlement EM&E organization for IBRD-loaned Anhui Highway Project I and II. He will be responsible for independent resettlement M&E for the IBRD-loaned Anhui Highway Project III.

Wang Asso-ciate Resettlement expert, director of Civil Engineering Faculty of Anhui Communication Technique Review Feng- d College, associated professor, deputy director of Engineering Resettlement Research Institute of sheng profess-sor Anhui Communication Technique Collage. He has been engaged in teaching of highway and bridge subjects and is examiner of qualification of high-rank professionals, member of Anhui Provincial Highway Association and deputy general secretary of Road Engineering Committee. He will be responsible for independent resettlement M&E for the IBRD-loaned Anhui Highway Project III.

Wang Associated Resettlement expert, deputy director of Civil Engineering Faculty of Anhui Communication Check Chang- cai profess-sor Technique College, deputy director of Engineering Resettlement Research Institute of Anhui Communication Technique Collage, and director of the institute. He has been trained at the IRBRD-sponsored resettlement M&E Workshop and received the certificate. Since 1998, he has been the technical person in charge for independent resettlement M&E for the IBRD-loaned Anhui Highway Project I and III. He will be responsible for the technical aspects of independent resettlement M&E for the IBRD-loaned Anhui Highway Project III.

Wei Bing Lecturer He is engaging in teaching of road and bridge specialization, and is staff of administration office Preparation of Anhui Communication Technique College. He was once engaged in independent resettlement M&E for the IBRD-loaned Anhui Highway Project.

Zhang Jing Lecturer He is engaging in teaching of road and bridge specialization, and is staff of administration office Preparation song of Anhui Communication Technique College. He was once engaged in independent resettlement M&E for the IBRD-loaned Anhui Highway Project.

Yang Aiwu Lecturer He is engaging in teaching of road and bridge specialization, and is staff of administration office Preparation of Anhui Communication Technique College. He was once engaged in independent resettlement M&E for the IBRD-loaned Anhui Highway Project.

Qi Yong- Lecturer He is engaging in teaching of road and bridge specialization, and is staff of administration office Preparation sheng of Anhui Communication Technique College. He was once engaged in independent resettlement M&E for the IBRD-loaned Anhui Highway Project.

Cao Engineer He is engaging in teaching of road and bridge specialization, and is staff of administration office Preparation Songlai of Anhui Communication Technique College. He was once engaged in independent resettlement M&E for the IBRD-loaned Anhui Highway Project.

8.4 Work relation In order to make sure that the resettlement organizations engaged in this project well understand their obligations and work scope during land acquisition and resettlement, the Provincial Project Office has sign Task-Assignment Letters, Entrustment Agreements or Contracts respectively with the PRO, county (district) ROs, design unit and M&E unit. And the PRO will assume the overall responsibility for the land acquisition, house relocation and

128 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） inhabitant resettlement. During implementation, the PRO will also sign Resettlement Compensation Agreements with the resettlement implementation organizations. The process of authorized contract and agreement is as follows: ⑴ The Provincial Project Office signs “Task-Assignment Letter for Land Acquisition, House Relocation and Resettlement for Anhui Highway Project III (S105 Chaohu-Wujiang)” with the PRO ; ⑵ The Province Project Office signs “Design Assignment Letter for Anhui Highway Project III (S105 Chaohu-Wujiang)” with Anhui Provincial Highway Investigation and Design Institute; ⑶ The Provincial Project Office signs “Assignment Letter for Resettlement M&E of Anhui Highway Project III (S105 Chaohu-Wujiang)” with Engineering Resettlement Research Institute of Anhui Communication Technique Collage; ⑷ The PRO signs “Agreement of Work for Land Acquisition, House Relocation and Resettlement within _____ County for Anhui Highway Project III (S105 Chaohu-Wujiang)” with ROs of the concerned counties (districts); ⑸ The PRO signs “Land Acquisition Compensation Agreement” with the land administrations of individual affected counties (districts). ⑹ The ROs of individual counties (districts) sign “Entrust Letter for House Relocation and Buildings” with town (subdistrict) ROs; ⑺ The land administrations of concerned counties (districts) sign “Agreement of Land Acquisition and Commpensation” with town (subdistrict) ROs; ⑻ The town (subdistrict) ROs sign “Agreement of Land Acquisition and Compensation” with villages or village groups, and ROs of individual counties (districts) sign “Agreement of House Relocation and Building” with households to be relocated. In the above mentioned letters and agreements or contracts, the work scope, obligations, entitlement and duty of various organizations should be clearly defined. The work relation between them is as shown in Fig.8-1 below.

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PRLG

PRLG（set with provincial

highway admin.）

City PRLG

Anhui Highway Anhui Communication Tech. Investigation & Design Inst. College （design unit） （M&E unit）

County（district） PRLG

County（district） RO （set with county commun.

Bureau highway admin.）

Town（subdistrict）RO

Village commit./group

Resettlement households

Fig. 8-1 Institutional Organization Chart for Resettlement Work of Anhui Highway Project III 8.5 Measures for Building Institutional Capacity A Providing necessary personnel The staff of the organizations at all levels will be composed of two parts, the administrative and profession personnel, and all the staff should be qualified with high professional skill and management ability; B Arranging necessary training courses ① Professional training will be provided to the key personnel of the organizations at all levels, so as to make them have a better understanding of the China resettlement policies and the IBRD requirements in this regard, ② Professional training will be provided to the town or subdiistrict personnel engaged in resettlement work so as to enhance their ability in understanding and handling the relevant policies, C Guarantee the availability of resettlement funds and facilities, D Establish database and ensure the information flow from the high to low level and vice versa, and the major problem resolved and decided by the Leading Group, E Strengthen reporting and internal monitoring system, and resolve issues in time, F Develop mechanism of external monitoring and evaluation, and set up predicting and alarm system.

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9. Public Participation and Consultation 9.1 Public Participation In the stage of resettlement policy formulating and RAP preparation and implementation, great attention will be paid to community participation and consultation in order to listen to opinions widely from social organizations, governmental departments, community and resettlers and encourage all parties to participate in resettlement and reconstruction activities. In the preparatory stage of feasibility study, the Project Office and the design unit have solicited opinions and proposals for resettlement work such as highway route, culverts, intersections, setting of traffic safety boards, pedestrian path arrangement, resettlement approach and resettlement manner from the local relevant departments, mass organizations, town (subdistrict) government, and representatives of local people. In the course of resettlement preparation, the PRO widely solicited the opinions on the resettlement and compensation from local people’s governments at all levels and the resettlers’ representatives. With the cooperation of local people’s governments at all levels, preparation of Resettlement Plan has been completed. In project implementation stage, the resettlement organizations concerned will further encourage the public to participate in the resettlement and production rehabilitation. 9.1.1 Public Participation in Project Preparation In the project feasibility study stage, the Project Office encourages the public to participate in the work. ⑴ In the middle-Apr.2006, the professionals of the project owner and design unit went to the site to collect opinions and suggestions on the project construction from the pepople along the planned highway; meanwhile, the concerned counties/districts people’s governments held meetings (participated by the key persons of the governmental departments responsible for transportation, planning, land management, forestry, environmental protection and power supply, etc.) to study and discuss the highway route, environmental protection, host site for resettlers and resettlement approches. With due consideration of the opinios of the local governments, the design unit worked out several alternatives and put forward the recommended scheme after economic and technical comparsion. ⑵ In the middle-Sep. 2006, the people’s governmints of counties and districts along the highway line held meetings on how to well carry out the resettlement work, which were participated by the leaders of affected towns and subdistricts. At which, unanimity of opinion was concluded on the significance of project construction and conducting the resettlement work well. Resettlement Work Meeting Held in Huangshan city ⑶ In order to make extensive publicity of the project construction and to further understand the public opinions on the project construction and resettlement, the county/district ROs and ECIDI, the consultancy unit, jointly held colloqia at the affected towns, subdistricts, village groups from the middle-Aug. to the end of Sept. as well as the middle-Dec. 2006, to publicize to the local cadres and resettlers’ representatives the necessity of the project and the resettlement policies, discuss with them and collect opinions from them.

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9.1.2. Public Participation in RAP Preparation During preparation of the RAP, the local governments and people have been engaged in the following work. ⑴ The RO’s at different levels, villagers and resettlers have participated in the survey on the land to be acquisited and the affected inventory in kind, ⑵ The PRO organized the policy publicity meetings participated by the relevant personnel of the ROs at prefecture, city and county levels, at which the resetllemnt policies of the state, province and city, and World Bank as well, were explained in detail and specific work requirements regarding resettlement were put forward. After that, the ROs organized similar meetings participated by the affected persons, at which the relevant domestic and World Bank policies concerning resettlement were publicized and their opinionis were collected and discussed on how to reduce the project impacts, how to resettle the people affected by land acquisition and house relocation, and on the compensation criteria for different affected objects. ⑶ During resettlement planning, the county/district ROs and ECIDI, the consultancy unit, jointly organized colloquia and informal interviews with the village cadres and resettlers’s representatives at the affected villages or village groups from middle-Aug. to the end of Sept. as well as middle-Dec.2006, so as to further listen to their ideas, comments and requirements concerning selection of host site, measures for production restoration, house relocation, land acquisition and resettlement compensation, etc. A total of 6 colloquia were held, which were participated by over 70 person/time, and over 20 resettlers were interviewed.

Colloquia held in Lianhong Village Colloquia held in Taohuatan Village

Colloquia held in Lundu Village Surveying a household by questionnaire

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Basic Conditions of Colloquia Table 9-1 Time Place Participator Subject Main comments and conclusion Responsible leaders from The village only has the tractor-road with poor transportation condition to outside; the Lianhong county highway bureau, Survey the project effect villagers are fervour for the road construction and hope that the construction should be village of a.m. Aug. Taohuatan town and villages, condition and consult on the started as early as possible. They express that it doesn’t matter for the land acquisitioned Taohuatan town 13 and 15 resettlers’ representatives production restoration by project construction, the income loss can be made up by the forest resource or in Jingxian of Yu Guofu, Zhang Zhuanlin, measure outgoing work, but they suggest that construction should be civilization, e.g. that the county etc.. irrigation canal cut off during construction should be restored in time. Survey the compensation for Taohuatan Responsible leaders from They suggest that the compensation for land acquisition in this project should be high the land acquisition and village of county highway bureau, than that in Project-II, the surplus land at edge of effected land should be included in p.m. Aug. requirements and suggestions Taohuatan town Taohuatan town and villages, compensated for the land acquisitioned. They said that it is no problem for resettlement as 13 from resettlers, and consult in Jingxian and 13 resettlers’ representatives that the land acquisition has less effect on the village, and each village has some reserved on the production restoration county of Wan Xianbing, etc.. land (which can be allotted) and also has wasteland (which can be reclaimed). measure As that this village is resettled back village for Chencun reservoir (i.e. Taiping lake), it Responsible leaders from Survey the existing has less cultivated land, the major income source is from tea on the mountain. But Lundu village of county highway bureau, production and living interrupting by Taiping Lake, the tea price is not high, and local resident life is poor. The a.m. Aug. Longmen Longmen township and villages, condition and their attitudes village has more travel resource, which is not developed for short of capital and without 16 township in and 15 resettlers’ representatives to the project construction, investor. They hope that the project construction should be started as early as possible. Huangshan area of Zhou Guohua, Zhang Nanxin, and arrange the host area. The host area can be at near place, but the work quantity will be large so that the ground Zhang Anmin, etc.. should be levelled and planed under unified way. Responsible leaders from As that the village is near the side of Taiping Lake, the selection of host area will be more Dongkeng Consult on the host area, and county highway bureau, difficulty, the engineering quantity will be large, they suggest that combined with the village of survey their opinions and p.m. Aug. Longmen township and villages, project construction, it is to have the house plot at inside of the new road and it is only to Longmen requirements on 16 and 11 resettlers’ representatives have a transition period during project construction. For the compensation, they express township in compensation for land of Zhou Xiaoju, Zhou Xianghui, that they will be satisfied if compensation paid to resettlers is according to relative Huangshan area acquisition compensation. etc.. policies of state and compensation is enough for them to build houses. It locates in urban planning area of Huangshan, and the traffic and infrastructure is Responsible leaders from developed. Therefore, they said that the project construction will not bring benefit for Survey their attitudes to the Yuhe village of county highway bureau, Gantang them, but will acquisition a part of cultivated land, the effect on a few of villages is great, a.m. Dec. project construction and Gantang town in town and villages, and 14 anyhow they support the state construction but the compensation standard should be high. 20 consult on the production Huangshan area resettlers’ representatives of Xu For the production restoration, they said that the compensation should be paid to restoration measure. Guohua, Zhuan Yusheng, etc.. resettlers fully and directly for them to work in 2nd and 3rd industry because no more reclaimable resource in the village. Though the village belongs to Huangshan planning area, the traffic condition is poor and Responsible leaders from a few of villages have no access to outside, the goods are transported by shoulders. The Majia village of county highway bureau, Gantang p.m. Dec. Consult on the production road construction will solve their access to outside, therefore, they have high enthusiasm. Gantang town in town and villages, and 13 20 restoration measure. It is no problem in production restoration as that the village has more cultivated land. Huangshan area resettlers’ representatives of They also express that all problems can be solved if it is convenient in traffic after the Wang Yinsuo, Wang Yahei, etc.. road constructed, and they can engage work in the city if there is difficulty in life.

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⑷ The social and economic investigation regarding project impact was supported and cooperated by the local governments, project-affected village groups and the PAPs. It is obvious that all of them have been engaged in the preparation of the RAP. ⑸ For enhancing the publicity of the project and further understanding the opinions of the people on the resettlement work, the PRO and investigation design unit carried out the survey on public participation and public opinions by means of questionnaire before preparation of the RAP. Totally, 52 filled questionnaires on public participation and 65 filled questionnaires on public opinions were received. The survey indicates that the poor traffic and trasportation is the most critical problem restricting the economic development in the project affected area, which is followed by lower level in natural resources development. The surveyed persons deem that the construction of this project be favorable for propelling the ciuculation of agricultural sideline products and travel resource development and accelerating the local economic development; therefore, they think it is urgent and necessary to have the project construction, and they are willing to support the project construction with their own efforts. Most of the PAPs know the project which will be constructed soon, have good mental preparation for land acquisition and house relocation, and express that they will be ready to be resettled so that the project construction has a well mass foundation. (6) Later on, the PRO and resettlement implementation organizations at different levels will enhance the encouragement of public participation by the efforts in the following aspects. —Preparing Resettlement Information Booklet In order to ensure the local government and resettlers in the affected areas to know the details of the resettlement plan and compensation plan for each sub-project, the PRO will summarize the resettlement policies of the government and the WB and related information and publcize them via public notices or media, or compile such information into booklets and distribute them to resettlement households within the project-affected area. The information includes the status of lost property, compensation criteria and resettlement policies, the rights of resettlers, channels of opinion feedback and appeal, etc. —Holding Meetings Public meetings, mainly held before the implementation of the land acquisition and resettlement, are to further explain relative policies, laws and rules and compensation criteria in detail so that the APs can know them early and make early arrangement. — Publicize through TV program, bradcasting station and newsparpers the information about project components, schedule and resettlement policies. 9.1.3 Public Participation in RAP Implementation All resettlers will be encouraged to participate in the whole process of implementation of the RAP. A Participation in House Reconstruction ⑴ Housing compensation criteria

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The decision on compensation criteria for housing will directly affect the interests of the resettlers. Before the houses relocated, the relevant resettlement authority will consult and sign an agreement with the resettlers on the compensation criteria for the houses. The consulting results will be disclosed before the agreement signed so as to put the resettlement under public supervision. ⑵ Resettlement house plots and house reconstruction During preparation of this RAP, the relevant department has carried out a survey on the house relocation site and construction mode. The survey on the resettler’s opinion on house relocation shows that most of the resttlement house holds would like to resettle within their original village groups and dismantle the old houses and build new houses by themselves. The local government will provided assistance in this regard, such as helping the households which have not enough laborers and leveling the house plot site, etc. ⑶ Disposal of old houses All the old houses to be relocated will be compensated at replacement cost. Within a specified time period, resettlers can, by their own will, demolish their old houses first and then rebuild the new houses or vice versa. Resettlers themselves can use the salvageable material from the old houses. B Participation in Production Rehabilitation All the villagers are required to participate in land re-adjustment and redistribution and start of any agricultural development activities, with special attention to the resettlers who has special requirement on land. C Participation in Management of Land Compensation Use The land compensation belongs to the village collective, and should not be withheld or diverted by any individual or organization. The compensation fund paid to the village collective should be used in a planned way and for designated purpose after discussion at the villagers’ meeting and under the supervision of the villagers’ representatives. D Participation in Project Construction The project construction will cause certain impacts on the local community. In order to ensure the PSPs to get benefits from the project construction, the local people will be encouraged to take part in the construction, and favorable conditions will be created to use local materials and labor force. 9.2 Appeal Mechanism and Channel During preparation and implementation of the Resettlement Plan, public participation is always encouraged, but unforeseeable problems will still occur during resettlement implementation. In order to solve problems effectively and ensure successful project construction and land acquisition, besides the existing appeal ways through the letter and visit offices set in the local governments at all levels, an open and effective appeal channel has been set up for rural resettlers. The procedures are described as follows.

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Stage 1： If the resettlers are not satisfied with the resettlement plan, they can appeal to the villagers’ (neighbourhood) committee and the local town (subdistrict) resettlement work group in oral or in written form. If an oral appeal is made, the village will process and record in written. They should resolve it in two weeks after receiving the appeal. Stage 2: If the resettlers are dissatisfied at the decision of stage 1, they can appeal to the city (county) RO and the office shouldl make decision within two weeks. Stage 3: If the resettlers are dissatisfied with the decision of stage 2, they can appeal to the PRO after receiving the decision; the office will make decision within two weeks. Stage 4: If the resettlers are still dissatisfied at the decision of the PRO, they can appeal to a people’s court according to the civil procedural law after receiving the decision of the PRO ’s decision. The resettlers can appeal on any respect of the resettlement, including compensation criteria, etc. The above mentioned appeal approaches will be informed to resettlers through meetings and other ways to make them understand their right of lodging appeal. At the same time, the appeal processes will be publicized among the PAPs through media. The relative authorities will sort out the opinions and proposals of the PAPs and the resettlement offices at all levels will process the information in a timely and effective manner. The organizations accept the appeals and grievance of the APs free of charge, and the expenses incurred therefore will be paid by the project resettlement office from project contingency.

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10. Monitoring and Evaluation In order to guarantee that the RAP can be smoothly implemented and the resettlement target suitably realized, monitoring for land acquisition and execution of resettlement will be carried out in whole process. Monitoring on the resettlement will be divided into two parts, i.e., internal monitoring of the resettlement organizations and the external independent monitoring. 10.1 Internal Monitoring 10.1.1 Target and Tasks The target of internal monitoring is to maintain responsibility of the resettlement organs as specified in RAP during implementation, and ensure that the project can be constructed smoothly and the resettlers’ legal rights will not be impaired. The auditing authorities of the county (city) will independently exercise the auditing supervision function over units concerned under their jurisdiction in accordance with the laws and regulations. The superior units assume the responsibilities for monitoring their subordinates so that the RAP principles and schedule can be followed. 10.1.2 Institution and Staff The internal monitoring for land acquisition and resettlement will be managed by the provincial project resettlement office, and performed by county (city) and town (subdistrict) resettlement office and villages. To exercise effectively the functions of the internal monitoring, full-time professionals have been assigned for the project resettlement office at all levels. All of them have participated in the preparation and implementation of the RAP, and they will carry out the internal monitoring control in the process of RAP implementation. 10.1.3 Monitoring Content The main contents of internal monitoring are shown as below. ⑴ Allocation and utilization of the resettlement compensation; ⑵ Selection and allocation of new house plots; ⑶ Building of new houses of resettlers; ⑷ Support to vulnerable groups; ⑸ Employment of the PAPs; ⑹ Perfection of irrigation and other farming facilities; ⑺ Selection of adjusted agricultural restructuring and crops; ⑻ Adjustment and distribution of the land; ⑼ Displacement of individual business households and enterprises; ⑽ Restoration of special facilities; ⑾ Scheduling of the above mentioned activities; ⑿ Implementation of the policies in RAP;

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⒀ Public participation and consultation during implementation; and ⒁ Staffing, training, work schedule and working effectiveness of resettlement offices at all levels. 10.1.4 Monitoring Procedure The PRO will supervise the resettlement activities through internal monitoring framework. It has established a database for land acquisition, housing relocation and resettlement, and will monitor the whole process of the resettlement. During implementation, the resettlement offices at all levels will establish corresponding resettlement database and update them according to the actual resettlement conditions. They will also timely transfer the on-going activity records and report the resettlement implementation progress to the resettlement office at higher level so as to be realize continuous monitoring. In the above internal monitoring system, information lists in specified format will be drawn up so as to realize the continuous message flows from the village level to the PRO. The country (city) ROs and town (subdistrict) Ros are important chains in the internal monitoring system, and their work will be periodically checked and inspected. 10.2 External Independent Monitoring and Evaluation 10.2.1 Target and Task The external monitoring and evaluation (M&E) undertaken by an institution independent to the resettlement execution institutions is to monitor and evaluate whether the target of the land requisition, resettlement and relocation activities are realized, by which evaluation opinions and proposals will be put forward on the resettlement, housing relocation and restoration of the resettler’s living standards, and to provide pre-alarm system to the project management, and reflecting channel to the resettlers. The external independent monitoring institution will become the consultant both for the Project Resettlement Leading Group and the PRO, it will conduct follow-up investigation, monitoring and evaluation of the resettlement activities according to the RAP and provide advice for decision-making. 10.2.2 Main monitored and evaluated indicators A. Main monitoring indicators ⑴ Progress: including preparation, implementation of land requisition, housing relocation and resettlement; ⑵ Quality: including civil construction quality and degree of resettlers’ satisfaction; ⑶ Investment: including allocation and use of the funds. B. Main evaluation indicators ⑴ Lving and production conditions of PAPs ① Economic conditions: household economic development before and after resettlement, including assets, production materials, subsistence materials, income, etc.

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② Environmental conditions: living environment before and after resettlement, including traffic, culture and education, sanitation, commercial service facilities, etc. ③ Employment: change in employment, including employment rate, assistance to the different PAPs, especially the vulnerable PAPs, such as impoverished families and minority families, etc.. ④ Community development: local economy in resettlement host sites, environmental development, neighborhood relation, and public opinions after resettlement. ⑵ Infrastructures Changes of infrastructures in the project affected area before and after resettlement. C. Individual business households and enterprises Changes of the business conditions of individual business households and enterprises before and after resettlement. 10.2.3 Monitoring and Evaluation Measure Monitoring and evaluation will be performed on the basis of the survey data provided by the resettlement implementation institution. With an overall understanding of the situation, the evaluation will be performed by sampling survey and quick evaluation. Typical samples (resettled households/villages/towns) which have the representatives will be selected to establish evaluation index system for different types of PAPs. Experienced experts will be invited to decide in a back-to-back way the weights for different indexes. Referring to the updated research output on living quality both in China and abroad, the indexes will be non-dimensionally treated, and the survey results are analyzed and the computation results are evaluated and compared. The external monitoring and evaluation institution will also carry out the following work. (1) Survey of resettlers’ living standards The base-line survey will be conducted for this project, the selected samples of the base-line living standards of the resettlers will be collected. (The preliminary samples will be randomly collected). The living standard will be investigated once or twice a year to monitor the variation in the resettlers’ living standards. The necessary data can be obtained by periodical survey, random interview and site visit, based on which statistical analysis and evaluation are performed. The survey comprises of various indicators of judging the living standards. One indicator will be used for weighing the dynamic variation of living standards before and after the land requisition and resettlement. The selected indicators will be checked to see whether they are reasonable in reflecting the actual production and living levels in the base-line survey and are subject to modification according to the actual conditions, so as to guarantee the message obtained to reflect the quality and quantity of the real situation. Sampling scale: resettlers by land acquisition and house relocation: 5%; sample villages affected by land requisition: 20%.

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(2) Public Consultation The independent monitoring and evaluation institution will participate in the public consultation conferences held by the village and township. By this method, the institution can evaluate the effectiveness of the public participation and the cooperative attitude of the resettlers towards the resettlement. Such activities will be conducted during and after the resettlement implementation. (3) Resettlers’ opinions The independent monitoring and evaluation institution will often interview the town (subdistrict) ROs and village groups to know the opinions collected from the resettlers and interview the resettlers who have grievance. The institution will timely transfer the opinions and requests from individuals and collective organizations affected by the project, and provide advice for improvement, so that the resettlement implementation can be more smooth and effective. (4) Other responsibilities The external M&E institute will monitor the following activities in the process of implementation. 1) Selection of resettlement sites, 2) Construction of houses, 3) Production resettlement and rehabilitation, 4) Support to the vulnerable group, 5) Resettlement of individual business households and enterprises, 6) Restoration and reconstruction of special facilities 7) Payment and amount of the compensation, 8) Transition of resetllement, 9) Employment of laborers, 10) Training, 11) Schedule of the above mentioned items, 12) Organizational network for the resettlement, 13) .Use of compensation of the collective-owned land and resettlers’ income, 14) Increase of employed laborers’ income. 10.2.4 Working Processes ⑴ Preparation of monitoring and evaluating outline, ⑵ Developing computer software for monitoring and evaluating of the resettlement, ⑶ Drafting the investigation outline, survey forms, and record cards for sample villages

140 RAP - Anhui Highway Project III（S322 Taohuantan~Gantang） and sample households, ⑷ Design of the sampling survey, ⑸ Base-line survey, ⑹ Establishing the information system for monitoring and evaluation， ⑺ Investigation for monitoring — Community socio-economic survey， — Resettlement implementation institutions —Typical villages survey —Typical households survey —Sample survey for other affected objects ⑻ Sorting of monitoring information and establishment of database ⑼ Comparison and analysis ⑽ Preparing a monitoring and evaluation report each year.

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11. Plan for Report Preparation 11.1 Resettlement Action Plan (RAP) Report In April 2006, the RAP was submitted to the WB for pre-aprraisal, and the final report is planned to submit to the WB for appraisal by the end of March 2007after revised based on comments and requirements of the WB resettlement experts. 11.2. Resettlement Progress Report A. Periodicity Since the commencement date of the resettlement implementation, resettlement progress reports will be submitted at least once every three months from the lower resettlement offices to the higher resettlement offices. According to the reports submitted from resettlement offices at all levels, and prior to July 31 each year, the PRO should submit to the WB a Progress Report of Project Resettlement for Anhui Highway Project III (S105 Chaohu ~ Wujiang Section). The report will be submitted once a year. B. Format and Contents The format of the resettlement progress report by the PRO will be prepared to meet the requirements of the ADB. The format of the report usually comprises of two parts. A) The descriptive part, summarizing the resettlement conditions and stating problems/difficulties met in the implementation and the corresponding resolutions and measures; B) forms and lists mainly showing statistical data of previous six (6) months, which reflect the the progress by comparison of the actual and planned land requisition, house removal / reconstruction and use of compensation. The formats refer to Table 11-1 and Table 11-2. Table 11-1 Progress Report of Land Requisition and Resettlement Department:

Deadline for Reporting Contents: Date Month Year

Fill-in Date: Date Month Year Planned Completed Accumulated Items Unit Proportion amount amount total Fund allocation Moving into new houses Old houses demolition Constructed public works Electric line reconstruction Road rebuilding Channel rebuilding Land acquired Land adjusted Labor employment Reporter: Signature(Person-in-charge)： Official seal：

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Table 11-2 Land and House Compensation and Resettlement Subsidy Town (subdistrict):

Data up to: Date Month Year

Fill-in Date : Date Month Year

Investment Affected unit Description Unit/Quantity Compensation /Subsidy received (￥) required (￥) Village

Reporter: Signature(person-in-charge): Official seal： (Notes: “Description” will be filled in with such as construction of irrigation facilities (canal (m), pump station), domestic animals farming (such as pigs, chickens, ducks, fishes), newly improved dry land to irrigated land, construction of public welfare works, infrastructure construction, establishing of enterprises and labor employment, etc.) 11.3 Independent Resettlement Monitoring and Evaluation Report Engineering Resettlement Research Institute of Anhui Communication Technique Collage will submit its report within one month after its the work. PRO will submit the resettlement progress report to the Bank annually with the attachment of the report of Engineering Resettlement Research Institute of Anhui Communication Technique Collage. A. Periodicity Following the requirement of the WB, the external M&E will be carried out once a year since the resettlement implementation starts, with the survey for M&E in August and report submission before December 31st. The land acquisition and house relocation and resettlement of this project is planned to complete before the end of 2007 for all constrct lots, and the external resettlement M&E is planned to conduct for four times (respectively in 2007, 2008, 2009 and 2010). Before the end of July 2007, the Resettlement M&E Outline will be submitted, and sample selection and collection of baseline data of the samples will also be finished, and sample database established. The database will be updated year by year for comparison. B. Contents ⑴ Resettlement baseline survey; ⑵ Progress of land requisition, housing relocation and resettlement; ⑶ Production resettlement and restoration; ⑷ Housing demolition, relocation and reconstruction; ⑸ Progress of special fcility relocation； ⑹ Resettlers’ living standards; ⑺ Availability and utilization of the resettlement funds; ⑻ Evaluation of operation and efficiency of resettlement implementation institutions;

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⑼ Support to vulnerable groups; ⑽ Function of resettlement implementation institutions; ⑾ Existing problems and proposal

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Appendixes： Appendix I：List of Project-affected Towns/Subdistricts List of Project-affected Towns/Subdistricts

County Town No. of Admin. Name of administrative village （District） (Subdistrict) villages Jingxian Taohuatan 2 Taohuatan Village（10）, Lianhong Village（9） County Town

Longmen Lundu Village（3）, Dongkeng Village（2）, Yuchun Village 3 HuangShan Town （1） District Gantang 2 Yuhe Village（2）, Majia Village（3） Town 30 Village groups（the figures in the brackets above indicates 7 the number of village groups）

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Appendix II： Summary of Agricultural Population Needing Resettlement (Basic Condition of Village Groups) Summary of Agricultural Population Needing Resettlement Total cultivated land（mu） Land to be acquired（mu） No. of agri.

population Cultivated County Town Admin. No. of agri. Village group land per capita to be （District） （subdistrict） villages population Subtotal Paddy field Dry land Tea garden （mu/pers.） Subtotal Paddy field Dry land Tea garden resettled

（person）

Jingxian Taohuatan Taohuatan 5 1855 3279.72 2519.22 760.5 1.77 36.14 29.91 6.23 26

Quanyi 101 167.05 135.05 32 1.65 1.43 0.6 0.83 1

Qianer 128 180.52 143.52 37 1.41 7 7 0 5

Xinyi 115 159.2 130.6 28.6 1.38 7 6.2 0.8 5

Xiner 125 161 128.8 32.2 1.29 15.2 14.2 1 12

Xinsan 125 237.55 180.55 57 1.90 5.51 1.91 3.6 3

Lianhong 9 1236 3404.4 1804.4 1600 2.75 73.76 63.2 10.56 32

Liujia 88 187.6 114.6 73 2.13 12.81 9.5 3.31 6

Shangcun 136 322.3 160.3 162 2.37 3.94 1.76 2.18 2

Huangsushu 92 217.8 111.8 106 2.37 11.59 11.59 5

Xiashu 132 438.8 210.8 228 3.32 9.46 5.57 3.89 3

Shanglian 152 299.6 195.6 104 1.97 12.39 11.21 1.18 6

Xialian 135 381.5 197.5 184 2.83 13.35 13.35 5

Yugong 127 458.1 235.1 223 3.61 1.22 1.22 0

Tianfan 55 84.9 84.9 1.54 5 5 3

Huangjialong 73 185 85 100 2.53 4 4 2

Town total 2 14 29598 33076 30510 2566 1.12 109.9 93.11 16.79 58

County total 1 2 14 288912 283035250635 32400 0.98 109.9 93.11 16.79 58

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Summary of Agricultural Population Needing Resettlement (Continued) Total cultivated land（mu） Land to be acquired（mu） No. of agri.

population Cultivated County Town Admin. No. of agri. Village group land per capita to be （District） （subdistrict） villages population Subtotal Paddy field Dry land Tea garden （mu/pers.） Subtotal Paddy field Dry land Tea garden resettled

（person）

Huangshan Longmen Lundu 2 1012 815 15 800 0.81 64.87 7.36 57.51 86

Yanling 164 120 10 110 0.73 58.63 6.12 52.51 80

Yaoshang 92 93 3 90 1.01 6.24 1.24 5 6

Dongkeng 1 618 605 25 580 0.98 23.48 0 23.48 24

Hexi 171 168 7 161 0.98 23.48 23.48 24

Yuchun 1 586 650 5 645 1.11 1.53 0.84 0.69 1

Shenjiawan 117 129 14 115 1.10 1.53 0.84 0.69 1

Town total 3 4 5011 3554 75 3479 0.71 8.2 0 8.2 111

Gantang Majia 3 625 526 450 76 0.84 20.75 19.15 1.6 18

Majia 73 60 48 12 0.82 8.52 8.52 10

Shangwu 130 173 152 21 1.33 5.15 4.31 0.84 4

Xiawu 80 136 121 15 1.70 7.08 6.32 0.76 4

Yuhe 2 761 1007 907 100 1.32 17.84 15.99 1.85 14

Oujiachong 154 360 240 35 1.79 11.63 9.78 1.85 7

Xiaowu 168 140 90 50 0.83 6.21 6.21 7

Town total 2 5 16043 11285 9993 1292 0.70 38.59 35.14 3.45 32

District total 2 5 9 127059 149205106650 42555 1.17 46.79 35.14 11.65 143

Project total 3 7 23 415971 432240 357285 74955 1.04 203.01 128.25 28.44 201

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