Social Monitoring Report

Project Number: 39038 April 2009

PRC: ROADS NETWORK DEVELOPMENT PROJECT External Monitoring and Evaluation Report (No. 4)

Prepared by: WINLOT Consulting Ltd.

For Heilongjiang Province - Road Construction Project Linquan Project Construction Management Office

This report has been submitted to ADB by the Heilongjiang Province Jixi-Nehe Road Construction Project Linquan Project Construction Management Office and is made publicly available in accordance with ADB's policy communications policy (2005). It does not necessarily reflect the views of ADB. ADB Financed

Heilongjiang Road Network Development Project

External Monitoring and Evaluation Report

（No. 4）

WINLOT Consulting Ltd. April, 20, 2009

Content

1. Scope and Methodology of the Fourth External Monitoring and Evaluation ...... 1 1.1 Scope and Period of the Fourth External M&E ...... 1 1.2 Methodology of the Fourth M&E ...... 1 1.3 Laws and Policies Followed by the M&E ...... 3 2. Progress of Land Acquisition and House Demolition, Resettlement and Payment of Compensation Fees for both the Main Highway and Linking Roads ...... 4 2.1 Progress of Land Acquisition and House Demolition of the Main Highway ...... 4 2.2 Progress of Land Acquisition of Main Highway ...... 4 2.3 Progress of Main Highway House Demolition ...... 4 2.4 Use of Compensation Fund for Land Acquisition and Resettlement ...... 5 2.5 Resettlement of enterprises in ...... 13 2.6 Status of measurement and compensation of fragmentary land of the main highway ...... 14 2.7 M&E Opinion on Progress of Land Acquisition of Linquan Main Highway ...... 14 3. Sample Survey of People Affected by the Land Acquisition for Main Line Works of Linquan Highway Project ...... 15 3.1 Sample Survey of Affected Households in Sanjiazi Village of Diaoling Township, 15 3.2 Sample Survey of Affected Households of Dongxing Street of Tonghe Township, Tonghe County 17 4. Progress of Land Acquisition and Resettlement of the Linking Roads of Linquan Highway Project ...... 21 4.1 Summary of Progress of Land Acquisition of the Linking Roads of Linquan Highway Project 21 4.2 Survey of Villages, Towns and Townships Affected by the Linking Roads of Linquan Highway Project ...... 24 5. Survey of Working Opportunities Provided by Main Line Contractors of Linquan Highway Project ...... 29 5.1 Employment of local labor force by contractors ...... 29 5.2 Survey of Machinery Rented by Contractors from Local Villagers ...... 30 5.3 Survey of Houses Rented by Contractors in the Project Area ...... 30 5.4 Evaluation on additional job opportunities and income provided by the contractors to local population in the project area ...... 30 6. Conclusion and Recommendation ...... 33 6.1 Conclusion ...... 33 6.2 Recommendation ...... 35

1. Scope and Methodology of the Fourth External

Monitoring and Evaluation

1.1 Scope and Period of the Fourth External M&E

1. The scope of No.4 M&E is to monitor and evaluate the conditions of land acquisition, house demolition and resettlement induced by the main highway from Linkou County to and the linking roads including eight cities and counties (Linkou County, , Tonghe County, City, , County, Qing’an County and Baiquan County) and Forest Administration Bureaus along the project highway.

2. M&E team implemented the fourth M&E survey for the land acquisition and house demolition and resettlement induced by the main road construction and the linking roads construction from March 1 to April 15 of 2009. On April, 2009, M&E team finished this M&E report.

3. The datum of M&E this time is up to February 28, 2009. M&E team, essentially, did the work through comparing such datum with the datum of RP.

1.2 Methodology of the Fourth M&E

4. Methods adopted in this M&E include field visit and interviews, interviews of responsible persons of relevant departments and data collection. Key tasks of this M&E are to investigate into problems described in the 3rd RP and evaluate improvements of living standards of typical affected persons through field visits and interviews with resettlement officials.

5. On March 1, 2009, the external monitoring company and coordinators of Linquan PIU visited the 8 counties and cities along the project highway and conducted field visits to Baiquan, Qingan, Tonghe and Linkou to

1 a) find out the status of measurement and compensation of fragmentary land described in the 3rd RP;

b) investigate into and find out the status of compensation for farmland silted by scoured embankment;

c) visit key relocated households and businesses and confirm whether they are properly resettled;

d) investigate into the status of land acquisition, resettlement and compensation and progress of construction of the linking roads; and

e) collect information on employment of local labor by contractors in 2008.

6. Data summarized during this M&E mainly comes from statistics collected by PIU and the contractors and the progress reports on land acquisition and resettlement from the various counties. In addition, following the suggestion by Mr. Furgerson, a survey was conducted on the typical households affected by land acquisition and resettlement to collect more detailed data.

7. The progress for the link roads:

a) Qing’an Link Road: Earthwork construction for the embankment of Qingan Branch Line in Qingan County was completed in October 2008 and compensation was paid for land acquisition on Feb. 15, 2009;

b) Malanghe Link Road: Since the County Government, the Transportation Bureau and villagers in Tonghe County disagree with the original design of Malanghe Linking Road, discussion is still going on with the PIU on realignment of this linking road and the PIU has agreed in principle with the realignment proposal and a redesign is needed. Therefore, land acquisition and resettlement for this linking road is not finalized yet;

c) Link Roads in Linkou County: Gucheng Linking Road, Sandaotong Linking Road, Lianhua Linking Road, Diaoling Linking Road and the Linking Road located by the Memorial of 8 Female Revolutionary Martyrs in Linhe County have commenced and measurement of land occupation is under way.

d) Other links roads: Measurement of land acquisition and resettlement is also going on for the linking roads in the other counties and cities and

2 measurement of land acquisition for the linking roads is expected to finish by the end of June 2009.

1.3 Laws and Policies Followed by the M&E

8. Laws and policies followed by the M&E are shown as follows: a) Land Administration Law of PRC (implemented from Jan. 1, 1999 and revised in Mar, 2004); b) Forest Administration Law of PRC (implement from Apr. 29, 1998); c) Land Administration Regulation of Heilongjiang Province (implemented from Jan.1, 2000); d) Notification for Charging for the Four Items of Forest Land Occupation issued by Forest Administration Department, Price Administration Department and Financial Department of Heilongjiang Province (HLCLZ[1992]303, implemented from Dec. 2, 1999); e) Regulation of Heilongjiang Province on the Charge and Use of the Farmland Restoration Fees (HTZF[2001]111); f) Basic Farmland Protection Regulation of Heilongjiang Province (revised) (issued at Jun. 30, 1995); g) Notification on the Charge Standard for the Farmland Restoration Fees issued by Land Administration Bureau, Financial Department, Price Administration Department and Agricultural Commission of Heilongjiang Province (issued at Aug. 12, 1991); h) Notification on the Charge of Land Administration Fees issued by Land Administration Bureau, Financial Department, Price Administration Department of Heilongjiang Province (issued at Jun. 20, 1995); i) Involuntary Resettlement Policy of ADB (issued in Nov. 1995) and Resettlement Handbook; j) The Standard for the Output Value of the Farmland of Heilongjiang Province (HTZF[2000]36); k) Resettlement Plan of Road Network Development Project of Heilongjiang Province (Communication Department of Heilongjiang Province, Feb. 24, 2006); l) In April, 2007, real estate evaluation and consultation companies that have relevant qualification evaluate the land compensation standards of Tieli City, Linkou County and Suiling County.

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2. Progress of Land Acquisition and House Demolition,

Resettlement and Payment of Compensation Fees for both

the Main Highway and Linking Roads

2.1 Progress of Land Acquisition and House Demolition of the Main Highway

9. By Feb. 28, 2009, land acquisition for the main highway of Heilongjiang Linquan Highway Project had been completed (See Table 1) and 100% of the houses, power supply and telecommunication facilities and other attachments included in the plan have been removed and relocated. Land acquisition and resettlement not included in the plan and arising from design variation are being measured and calculated and will be completed by the end of June 2009. Land acquisition and settlement work of the linking roads are being implemented by the local governments.

2.2 Progress of Land Acquisition of Main Highway

10. By Feb. 28, 2009, the main highway of the Project had actually acquired 11,8896,101m2 of land in total, accounting for 105% of the approved land occupation of 11,322,830m2, including 5,767,631m2 of arable land, accounting for 94% of the areas of occupation as approved for arable land (6,757,971m2).

11. Compensation for acquired land was made in accordance with the national standards and local standards of Heilongjiang Province. Compensation has been fully paid and farmers affected by land acquisition are relatively satisfactory.

4 2.3 Progress of Main Highway House Demolition

12. The Project actually involves the removal of 286 houses, accounting for 129% of the planned quantity of 222 houses. All the houses have been demolished and 100% of the power supply and telecommunication facilities have been removed. Compensation for relocated households has been fully paid and the unit rate of the compensation standard for the relocated houses is 18% higher than the estimated unit rate. The affected households are properly resettled through three channels: 1) urban residents were partly resettled in the low-cost residential buildings arranged by the governments; 2) the relocated households built their own houses with the compensation fund; 3) the relocated households bought houses on market with the compensation fund. Thanks to these efforts of resettlement, the living standard of the relocated households was improved to different extents.

2.4 Use of Compensation Fund for Land Acquisition and Resettlement

13. The total budget approved for land acquisition and resettlement under the Project is 263,710,000CNY. By the end of February 2009, 277,240,000CNY had been actually paid, overrunning the budget by 13,530,000CNY. It is estimated that a further payment of 24,700,000CNY will be needed to complete the land acquisition and resettlement activities. The budget is overrun because 1）the compensation standard estimated in the budget is too low; 2) the amount of resettlement designed in the construction drawings is greater than that in the preliminary design; 3) there are some missing items in the construction drawing design in relation to the preliminary design; 4) design variation results in increase of land acquisition and resettlement. See Table 2 and 3 as attached for the actual payment and the estimated expenditure.

5 Table 1 Progress of Resettlement Work (Up to February 28, 2009)

Forest Land Acquisition (including House Demolition Main Highway Land Acquisition linking road) (per household) (m2) (m2) County/City Actual/ Actual/ Actual/ RP Completed Actual Planned Relocated RP Planned Actual Planned RP Planned Actual Planned Planned (%) (%) (%) (%)

Baiquan 2 2 100 2 100 427,107465,419 109 249,668372,209 149

Hailun City 1 1 100 1 100 128,929 116,610 90 548,797 599,420 109

Suiling County 17 23 135 23 100 650,705 682,730 105 53,345 163,636 307

Qing’an County 15 11 73 11 100 463,124555,491 120 63,638170,411 268

Tieli City 13 13 100 13 100 1,010,196 805,861 80 100,051 100,051 100

Tonghe County 87 134 154 134 100 884,220 903,202 102 115,628 170,642 148

Fangzheng County 1 1 100 1 100 762,084 735,663 97 11,949 19,376 162

Linkou County 27 27 100 27 100 1,347,279 1,366,425 101 66,998 40,662 61

Linkou Forest Administration

Bureau 251,532 167,873 615,156 366

6 Forest Land Acquisition (including House Demolition Main Highway Land Acquisition linking road) (per household) (m2) (m2) County/City Actual/ Actual/ Actual/ RP Completed Actual Planned Relocated RP Planned Actual Planned RP Planned Actual Planned Planned (%) (%) (%) (%)

Fangzheng Forest Administration 23 26 113 26 100 465,145 744,809 1,178,900 158 Bureau

Xinglong Forest Administration 185,650 136,230 73 814,2761,170,002 144 Bureau

Langxiang Forest Administration 72,290 118,965 165 Bureau

Taoshan Forest Administration 36 48 133 48 100 803,000 1,409,040 175 Bureau

Total 222 286 128.8 286 100 6,575,9715,767,631 87.7 3,812,3226,128,470 161

Remark: The planned number of house demolition is as the construction drawing; the planned land and forest land acquisition are as the survey result of Land Planning Institute.

Source: Statistics of Linquan Highway PIU.

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Table 2 Disbursement of Land Acquisition and Resettlement Compensation Up to Feb. 28, 2009 Total Payment Ownership Type Compensation Paid (CNY) Percentage Remarks (CNY) (%) Main Highway 8,011,842 8,011,842 100 Land Acquisition Temporary Land Acquisition of 3,270,091 3,270,091 100 Baiquan Borrowing Pit County Forest Land 2,265,210 2,265,210 100 Compensation House 77,000 77,000 100 Demolition Main Highway 1,014,701 1,014,701 100 Land Acquisition Temporary Land Acquisition of 2,864,749 2,864,749 100 Hailun City Borrowing Pit Forest Land 4,858,275 4,858,275 100 Compensation House 7,600 7,600 100 Demolition Main Highway 10,237,489 10,237,489 100 Land Acquisition Temporary Land Acquisition of 4,966,281 4,966,281 100 Suiling County Borrowing Pit Forest Land 1,517,091 1,517,091 100 Compensation House 6,100,814 6,100,814 100 Demolition Main Highway 12,755,382 12,755,382 100 Land Acquisition Temporary Land Acquisition of 3,609,510 3,609,510 100 Qingan County Borrowing Pit Forest Land 1,388,567 1,388,567 100 Compensation House 557,401 557,401 100 Demolition Tieli City Main Highway 5,867,147 5,867,147 100

8 Total Payment Ownership Type Compensation Paid (CNY) Percentage Remarks (CNY) (%) Land Acquisition

Forest Land 1,160,659 1,160,659 100 Compensation Including Taoshan House Forest 4,730,000 4,730,000 100 Demolition Administration Bureau Main Highway 12,469,996 12,469,996 100 Land Acquisition Temporary Land Acquisition of 1,993,600 1,993,600 100 Tonghe County Borrowing Pit Forest Land 515,563 515,563 100 Compensation House 27,502,182 27,502,182 100 Demolition Main Highway 14,210,223 14,210,223 100 Land Acquisition Temporary Land Acquisition of 93,036 93,036 100 Fangzheng Borrowing Pit County Forest Land 73,425 73,425 100 Compensation House 190,000 190,000 100 Demolition Main Highway 17,674,196 17,674,196 100 Land Acquisition Temporary Land Acquisition of 876,812 876,812 100 Linkou County Borrowing Pit Forest Land 129,615 129,615 100 Compensation House 871,003 871,003 100 Demolition Main Highway Linkou Forest Land 1,005,681 1,005,681 100 Forest Acquisition Administration Forest Land Bureau Acquisition for 13,383 13,383 100 Borrowing Pit

9 Total Payment Ownership Type Compensation Paid (CNY) Percentage Remarks (CNY) (%) Main Highway Forest Land 1,971,860 1,971,860 100 Fangzhou Acquisition Forest Forest Land Administration Acquisition for 93,036 93,036 100 Bureau Borrowing Pit House 1,470,000 1,470,000 100 Demolition Main Highway Forest Land 2,156,005 2,156,005 100 Xinglong Forest Acquisition Administration Forest Land Bureau Acquisition for 179,915 179,915 100 Borrowing Pit Main Highway Langxiang Forest Land 212,873 212,873 100 Forest Acquisition Administration Forest Land Bureau Acquisition for 100 Borrowing Pit Main Highway Forest Land 2,322,982 2,322,982 100 Taoshan Forest Acquisition Administration Forest Land Bureau Acquisition for 223,713 223,713 100 Borrowing Pit State Land Acquisition Administration 2,420,474 2,420,474 100 of Borrowing Pit of Forestry State Vegetation Administration 27,548,103 27,548,103 100 Restoration Fee of Forestry Provincial Vegetation Department of 12,123,458 12,123,458 100 Restoration Fee Forestry Provincial Department of Reconnaissance Forestry Zoning 450,000 450,000 100 Fee and Planning Office

10 Total Payment Ownership Type Compensation Paid (CNY) Percentage Remarks (CNY) (%) No. 1 Forest Reconnaissance Industry 1,470,000 1,470,000 100 Fee Research Institute Provincial Administration Land Acquisition 218,592 218,592 100 of Forest of Borrowing Pit Resources Provincial Administration Vegetation 1,892,487 1,892,487 100 of Forest Restoration Fee Resources Yichun Forest Vegetation Administration 528,072 528,072 100 Restoration Fee Bureau Provincial Department of Arable Land 10,904,156 10,904,156 100 Land and Reclamation Fee Resources Provincial Planning Reconnaissance Institute of 4,000,000 4,000,000 100 Fee Land Resources Provincial Comprehensive Land Acquisition Land Administration 3,362,780 3,362,780 100 Acquisition Fee Station

Total 226,427,030 226,427,031 100

Data source: statistics of Linquan PIU.

The compensation does not include the compensation for electric power, telecommunication and other attachment on the ground.

11 Table 3 Schedule of Expenditure to be Paid for Compensation of Land Acquisition and Resettlement Up to Feb. 28, 2009 S.N Description Quantity Amount (CNY) Remarks

1 Variation of borrow pit 3.5 ha 420,000 Variation of borrow pit of Contract c15

2 Land transfer fee for toll plaza 5 ha 5,200,000 Land transfer fee Transverse and longitudinal offtake, diversion dike, pear-shaped dam, 3 Secondary land acquisition 22 ha 3,780,484 intersection, culvert bottom paving, etc. 4 Crop Compensation 280 ha 2,800,000 Land abandoned for a full year in 2006

5 Fragmentary land, buffer land 38 ha 4,000,000 Pieces of land difficult or impossible to cultivate

6 Flooded field 180 ha 2,700,000 Compensation for irrigated land

7 Relocation of power supply facilities 800,000 Increase in amount of resettlement

8 Relocation of telecommunication facilities 500,000 Increase in amount of resettlement

9 House demolition 2,700,000 Additional house demolition

10 Other attachments 1,800,000 Other attachments temporarily identified

Total 24,700,484

Data source: statistics of Linquan PIU

12 2.5 Resettlement of enterprises in Tonghe County

14. By February 28, 2009, Tonghe Jufeng Rice Mill, Tonghe Sanitary Ware Factory and Tonghe Agricultural Machinery Company had carried out resettlement and received corresponding compensation. Tonghe Agricultural Machinery Company only involved removal of the fencing walls and no impacts were produced on its operations. The other two enterprises had gone out of business for years and requested for a level of compensation much higher than the evaluation price determined by the licensed evaluation company and could not enter into a final agreement of resettlement with Linquan PIU. As a result, the progress of the Project was affected for a period of time. Through negotiation, a final agreement was reached and resettlement is completed.

15. The bosses of the two private companies have no intention to build a new factory with the compensation fund. All of their staffs had left these two companies before 2000. Therefore, the resettlement of the two enterprises did not produce adverse impacts on the owners and employees of the enterprises.

Figure 1: Tonghe County Agricultural Machinery Company (March 30, 2009)

13 2.6 Status of measurement and compensation of fragmentary land of the main highway

16. By Feb. 28, 2009, measurement of fragmentary land and buffer land resulting from the construction of the main line section of Linquan Highway Project had been completed 75%, the lsft 25% of the measurement of the fragmentary land and buffer land will finish by the end of June 2009.

2.7 M&E Opinion on Progress of Land Acquisition of Linquan Main Highway

17. According to the survey, by Feb. 28, 2009, land acquisition and resettlement for the main highway of the Project had been completed and compensation paid 100%. Smooth completion of the land acquisition and resettlement is a guarantee to successful implementation of the civil works and the Project will be carried out and completed on schedule.

18. According to the survey, by Feb. 28, 2009, compensation for temporary land acquisition for Linquan Highway Project had been fully paid and the contractors will restore the original use of the temporarily occupied land as required after the main highway is completed in September 2009. 19. 18. By Feb. 28, 2009, acquisition of and disbursement of compensation for forest land occupied by the main line and some linking roads of Linquan Highway Project had been fully carried out and no impact was produced on the construction of the main line works.

20. Storms in May and June, 2008 resulted in serious side slope scours to the subgrade sections of Linquan Highway in Linkou, Tonghe, Baiquan and Qing’an. As a result, some farmlands along the highway were filled up with silts and farming output was affected. The affected farmers requested for compensation. PIU has agreed to compensate the farmers for losses they suffered from the subgrade scours in the rain season in 2008 and is negotiating with the affected villagers and the local village and township governments. Measurement and compensation are under way. In order to avoid similar problems, PIU will make sure the contractors will dredge the side ditches and fill up the bottomland to prevent repetitive flooding of the farmland.

21. Standards enforced for compensation of land acquisition and resettlement under the Project conform to the national policies and laws and regulations of and the local compensation standards and management methods of Heilongjiang Province and the requirements of ADB.

14 3. Sample Survey of People Affected by the Land Acquisition

for Main Line Works of Linquan Highway Project

3.1 Sample Survey of Affected Households in Sanjiazi Village of Diaoling Township, Linkou County

22. Sanjiazi Village, Diaoling Township, Linkou County: The village has 340 households in total including 20 poor households with a population of approximately 40 people. In 2008, the net income per capita of the village was 3,860 CNY. Among the household income, 85% is income from farming and 15% is income from working as manual labor away from home. The total area of farmland that the whole village has is 8,100 mu, including 4,100 mu of arable land and 4,000 mu of reclaimed land. Farmland assigned to per household on average is 24 mu. 85% of the farmland grows soy beans, 10% corn and 5% rice. Villagers were arranged to exchange their farmland to be acquired with the reserve land of the village with better soil quality. Therefore, no impacts were produced on the living quality of the affected villagers. See Table 4 for statistics of land acquisition and resettlement in Sanjiazi Village of Diaoling Township, Linkou County. Table 4 Statistics of Land Acquisition and Resettlement in Sanjiazi Village of Diaoling Township, Linkou County S.N Type of Land Area Number of Affected Affected Area Per （m2） Households Household (mu) 1 Paddy field 10844 15 1.89 2 Dry land 128895 95 2.03 3 Forest land 4 Fishery farmland 1742 5 Irrigation land 84 6 Rural road 342 7 Countryside 2692 5 0.81 residential land 8 Barren hill 9 Total 144599 10 Expressed in mu 216.79 115 1.89

23. Household survey to Liu Chun, an affected villager of Sanjiazi Village of Diaoling Township, Linkou County: Liu Chun has 3 members in his family. The family used to have 9 mu of dry land, all of which were acquired by the Project. The village exchanged Liu Chun’s land with 9 mu of dry land reserved by the village. Liu Chun and his family got the same area of farm land but of better soil quality and higher yield

15 and their living standard is thus improved rather than lowered. Land acquisition did not produce negative impacts on the living standard of Liuchun’s family.

24. Sanjiazi Village of Diaoling Township, Linkou County: This village has 5 households to be relocated. Wang Jiaquan and Wang Jiajun, two of the five affected villagers, had built up their new houses while the other three affected villagers, Du Changlin, Xu Xiang and Zhang Dianchen, have not started building new houses and are still staying in unoccupied houses in the village. They plan to build houses of larger floorage and better conditions using the compensation fund and more savings or loans. All three villagers told us that they would use the compensation fund paid for their demolished houses to improving their residential conditions. Without the compensation, they would not be able to afford building larger houses depending on their own incomes only.

25. Status of New House Construction by Wang Jiaquan, an affected villager in Sanjiazi Village of Diaoling Town, Linkou County. Wang Jiaquan, an affected villager in Sanjiazi Village, received a compensation of 75,000 CNY. His new house was already completed in October 2008 and cost approximately 140,000 CNY, 70,000 CNY of which was his savings. The new house of approximately 120 m2 is an energy-saving residence built with heat insulation materials. Living in the new house, this three-member family can cut their expenses on coal for winter heating and their living conditions are improved.

New home of Wang Jiaquan, under construction (May 30, 2008)

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Figure 2: An Exterior Picture of the New House of Wang Jiaquan (April 2, 2009)

Figure 3: An Interior Picture of the New House of Wang Jiaquan (April 2, 2009)

3.2 Sample Survey of Affected Households of Dongxing Street of Tonghe Township, Tonghe County

26. Due to the construction of Bridge in Tonghe County,71 households on Dongxing Street of Tonghe Township, Tonghe County were affected. Most of these residents are laid-off employees of Tonghe Brewery. In order to properly address the resettlement of these affected households, the People’s Government of Tonghe County constructed 7 low-cost apartment buildings (named Minle Homes) in the northern part of the county town and sold these apartments at

17 cost price to the affected households. Totally 70 affected households were resettled in this new residential community.

The shabby home For Tonghe Beer Factory staffs before resettlement

Figure 4: Minle Homes, a low-cost apartment building complex specifically constructed for resettlement of affected households in Tonghe County (April 2, 2009)

18 27. Xia Aibin, an affected resident, used to live with his family in a 30m2 house. After resettlement, he and his family moved to a 60m2 apartment in Apartment No. 501, Unit 2, Building 5 in Minle Homes. The additional floorage was bought at 850 CNY per square meter (while the commercial apartments in Buildings No. 1, 2 and 3 in the same community were sold at 1,380 CNY per square meter in 2007 and 1,280 CNY per square meter in 2009, both much higher than the price of the low-cost apartments provided under preferential governmental policies.) Xia Aibin’s family has four members, Xia and his wife and an elderly and a child in senior high school. As an urban household covered by the minimum living guarantee scheme, Xia’s family receives monthly allowances from government. After they moved into the new apartment, their expenses on water and heating are increased, but their living conditions are greatly improved and much more comfortable. Xia and his family told us that they are thankful to Linquan Highway PIU and Tonghe County Government and they would have had to live in that crowded 30m2 house if they had not been given the chance to move under the Project. The other affected households also regard their resettlement under the Linquan Highway Project as an opportunity to improve their residential conditions.

Figure 5: New Apartment of Xia Aibin, an affected resident (March 30, 2009)

19 28. Huoju Village of Tonghe Town, Tonghe County: a) In 2008, Huoju Village achieved a net income per capita of approximately 4,950 CNY, slightly higher than 2007. With an arable land per capita of 4.5 mu, every year, rice sales per capita gets to 8,000 kg and even up to 10,000 kg to the maximum since yield of rice has been high in recent years. Comprehensive and direct subsidy provided by the national government is 76 CNY per mu for rice and 56 CNY per mu for dry land. Agricultural income accounts for 70% of the farmers’ income, with the remaining 30% coming from aquiculture and seasonal jobs (including providing manual labor for this High Project) from which the farmers get paid 100 CNY a day and usually 120 to 130 CNY a day. 10% of the labor force of the village is working elsewhere year round.

b) Poor households account for 5% of the total number of households in the village and there are 176 villagers covered by the minimum living guarantee scheme and receiving 35 to 50 CNY per month of governmental subsidy. 100% of the villagers are covered by the medicare insurance program at a rate of 10 CNY per person / year for 2008 and 20 CNY for 2009.

c) Villagers are setting up greenhouses along the highway at a construction cost of 3000 CNY each with steel tube framework and plastic cover sheet. The government grants a subsidy of 1,000 CNY per greenhouse. Construction of the highway under the Project has brought valuable chances to traffic improvement and economic growth of Huoju Village.

Figure 5: Greenhouses being constructed by Villagers of Huoju Village along Linquan Highway (April 2, 2009)

20 4. Progress of Land Acquisition and Resettlement of the

Linking Roads of Linquan Highway Project

4.1 Summary of Progress of Land Acquisition of the Linking Roads of Linquan Highway Project

29. According to the land acquisition plan of the linking roads, the total area of land to be acquired is 1,336,356 m2, including 98,776 m2 of arable land, 401,719 m2 of forest land and 835,861 m2 of existing road and land of other purposes. Compensation for forest land as acquired has been paid as a part of the compensation package of the main line works. As agreed between the local government and HPCD, land acquisition of the other categories and removal of attachments for the linking roads shall be the responsibility of the local government and the compensation shall be made with reference to that for the main line works. 50% of the materials have been prepared for the linking roads and the construction is ready. Land acquisition and resettlement is underway. See Table 5 for status of land acquisition and compensation for the linking roads.

21 Table 5: Statistics of Land Acquisition and Compensation for the Linking Roads of Jina Highway Linquan Section Up to February 28, 2009 Xinglong Forest Linkou Forest Ownership Suiling Baiquan Hailun Tonghe Administration Tieli Qing’an Linkou Administration Total Bureau Bureau Paddy field 2754 7663 2459 290 13166 Dry land 2485 1184 8932 2957 55816 14236 85610 Forest land 45567 136330 2896 92508 10532 5045 108841 401719 Natural grassland 1064 1064 Rural road 258581 168039 6341 71057 14101 117365 53451 85 689020 Ponds and pools 218 122 340 Irrigation land 53 53 Educational land 57 57 Countryside residential 2862 8295 4184 1918 8342 3899 29500 land Land for road 45814 45814 construction Streets and alleys 26032 13394 39426 Land for hydraulic 98 157 255 works Unallocated land 3880 8580 1810 2389 11917 1756 30332 Total area (m2) 48568 340799 335944 31826 170829 36819 127897 120355 123319 1336356 Amount of 44064.00 843886.40 590507.84 386972.60 240793.00 105845.32 347400.40 804915.24 162862.64 3527247.44 compensation (CNY)

Data source: Statistics of Linquan PIU

22 30. Progress for link roads: By Feb. 28, 2009, land acquisition had been completed for some of the 22 linking roads of Heilongjiang Linquan Highway Project, but still under way for some others. Due to climatic reasons in Heilongjiang, engineering construction must commence in April or early May. The major task is land acquisition and resettlement and compensation before May 2009. Most of the linking roads are not commenced yet.

a) Qing’an Link road: By the end of May 2008, Land acquisition for Qing’an Linking Road in Qing’an County was completed and construction works was commenced in August 2008. So far, earthwork for subgrade has been completed and compensation for land acquisition is finished too. It is estimated that the linking road will fully complete in June 2009.

b) Malanghe Link Road: Realignment of Malanghe Linking Road in Tonghe County has become unavoidable and the PIU has agreed with the realignment proposal in principle. In this case, re-measurement and statistical calculation will be needed as a part of the land acquisition and settlement process.

c) Link Roads in Linkou County: The 5 linking roads in Linkou County are already commenced and are expected to complete by the end of September 2009. Compensation is underway and will be fully finished by the end of 2009.

31. Construction of the linking roads mainly involves pavement construction and widening on existing embankment. Therefore, amount of land acquisition is not huge in total and will not produce significant impacts on villagers in the adjacency and the construction progress of the linking roads.

4.2 Survey of Villages, Towns and Townships Affected by the Linking Roads of Linquan Highway Project

32. Survey of the linking road in Xinsheng Township of Baiquan County:

a) This linking road is a 19.2km long Class 4 road. Starting at Xinsheng Township Government Street on the east end and connecting Linquan Highway via Sandao Town, this linking road will improve the traffic condition and drive the economic growth in Xinsheng Township upon completion.

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b) In 2008, Xinsheng Township achieved a GDP of 148,010,000 CNY, including 131,450,000 CNY for agriculture, 1,970,000 CNY for forestry, 14,590,000 CNY for labor export. Compared with 2007, the GDP and agricultural output respectively increased by 19% and 21%. The net income per capita for farmers reached 1,336 CNY. There are 8 province-level poverty-stricken villages in the township that have been included in the poverty relief plan of Heilongjiang Province;

c) The full length of the road network of the township is 320 km, including 80 km of hard pavement and 56 km of cement pavement. Since the execution of the national plan that requires every village is connected with the road network, 44 km of village road has been completed and the remaining 80 km is scheduled to complete within the 5 years to come.

33. Survey of Xing’an Village of Xinsheng Township, Baiquan County:

a) The Xinsheng Township linking road runs through Xing’an village, the length is 19.6 km, connect the Xing’an village to Xinxheng Township. Construction of this linking road will significantly improve the traffic condition and contribute to the economic growth of Xing’an Village.

b) The village has 685 households and a total population of 2,932 people, including 850 people with labor capability, 98 ethnic minority people. There are 103 poverty-stricken households involving a population of approximately 350 people who are poor because of aging and diseases. In 2008, the village achieved a net income per capita of 4,500 CNY and had a total land area of 21,168 mu (dry land).

c) There is a primary school in the village with approximately 140 students (of Grade 1 to 5) and one private clinic but no village clinic.

d) The village is located approximately 5km and 25km away from the township and the county town. Means of transport include bicycles and motorcycles. There are mini-buses running through the village every day for passenger transportation. The village has 73 motorcycles, 4 motor tricycles, 1 big tractor and 8 cars, 85 four-wheel vehicles and 2 freight trucks.

e) The linking road is constructed mainly by means of upgrading and widening of the existing road, thus involving no land acquisition and resettlement.

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34. Survey of Qing’an Linking Road and Qinlao Linking Road in Qing’an County: Measurement for land acquisition and resettlement for Qing’an Linking Road was completed in May 2008 and the earthworks of subgrade commenced at the same time. By Feb. 28, 2009, compensation for land acquisition and resettlement has been paid (See Table 6 and 7 for summary of payment of resettlement subsidy and compensation for drainage canals and residential land and village-owned land in Qing’an Linking Road). Land acquisition and resettlement for Qinlao Linking Road is not carried out yet and no construction has been conducted.

25 Table 6 Summary of Resettlement Subsidy and Compensation for Drainage Canal and Residential Land of Qing’an Linking Road in Qing’an County Town/ Area of Acquired Land Compensation Compensation Village Amount Total Payable Township Total Area Including Standard Coefficient Qingfu Village Paddy field 9471.08 1.12 10 106076.10 10014.38 123461.70 (Main road) Dry land 543.3 3.2 10 17385.60 Qingfu Village Paddy field 3371.33 1.12 10 37758.90 Qing’an 4066.13 59992.50 (Drainage Canal) Dry land 694.8 3.2 10 22233.60 Qingfu Village Paddy field 1.12 10 0.00 816.3 6040.62 (Residential land) Dry land 816.3 0.74 10 6040.62 Paddy field 12842.41 1.12 10 143834.99 Total 14896.81 189494.81 Dry land 2054.4 45659.82 Paddy field Grand Total 14896.81 14896.81 189494.81 189494.81 Dry land Note: Calculation units adopted in this table are CNY, m2 and CNY/m2.

26 Table 7 Summary of Compensation for Drainage Canal and Village-owned Land in Qing’an Linking Road in Qing’an County Town/ Area of Acquired Land Compensation Compensation Village Amount Total Payable Township Total Area Including Standard Coefficient

Qingfu Village Paddy field 9471.08 1.12 6 63645.66 10014.38 74077.02 (Main road) Dry land 543.30 3.2 6 10431.36

Qingfu Village Paddy field 3371.33 1.12 6 22655.34 4066.13 35995.50 (Drainage Canal) Dry land 694.80 3.2 6 13340.16 Qing’an

Qingfu Village Paddy field 1.12 6 0.00 816.30 3624.37 (Residential land) Dry land 816.30 0.74 6 3624.37

Qingfu Village Paddy field 1.12 6 0.00 357.60 1058.50 (Rural road) Dry land 357.60 0.74 4 1058.50

Paddy field 12842.41 1.12 6 86301.00 Total 15254.41 Dry land 2412.00 28454.39

Paddy field Grand Total 15254.41 15254.41 114755.38 114755.38 Dry land Note: Calculation units adopted in this table are CNY, m2 and CNY/m2. Sources: Qing’an County Land Bureau.

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35. Survey of Malanghe Linking Road in Tonghe County: The original design of Malanghe Linking Road in Tonghe County was deemed as irrational during the negotiation between the County Government, the Transportation Bureau and the villagers for the two reasons: 1) The original design requires too much land acquisition; 2) The original design of the linking road will not facilitate improvement to traffic conditions of villagers of Malanghe Village. Therefore, the Transportation Bureau of Malanghe village proposed to realign the linking road so that it runs by a primary school and brings convenience to villagers and students. The realigned linking road is lengthened by 1.2km compared to the original design (0.9km) to 2.1km. The PIU has agreed in principle the realignment proposal (which shall not decrease the length nor the road class).

36. Survey of linking roads in Linkou County: There are 5 linking roads in Linkou County scheduled to complete by the end of September 2009. The design widths of pavement and subgrade for the linking roads are respectively 4.5m and 6.5m, with Sandaotong and Lianhua linking roads as an exception with a designed pavement width of 6m. Sandaotong Town is the only town in Mudanjiang City where town-level roads are not paved with cement pavement. During the construction of the linking road, the pavement of the existing provincial road S309 will be widened from 6m to 7.5m and expenses for the 1.5m additional width shall be borne by the country finance. Land acquired for the linking roads is compensated mainly by means of land exchange and expenses for resettlement and compensation are fully paid by the country finance.

5. Survey of Working Opportunities Provided by Main Line

Contractors of Linquan Highway Project

5.1 Employment of local labor force by contractors

37. In 2008, contractors of 26 contracts in the Project employed approximately 954 skilled workers, 3,627 ordinary workers and 130 ethnic minority workers from local farmers. 583 affected households, 481 women workers in the project area and 895 poor workers were employed from the local farmers. Training was provided to 25,198 local farmers in total. 6,670 jobs were provided for local farmers. Assuming that every employed farmer worked for 3 months for the project at a monthly salary of 2,000 CNY, the contractors of the 26 contracts employed 6,670 workers from local farmers and they earned 402,000 CNY in total (equivalent to 6,000 CNY per capita).

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5.2 Survey of Machinery Rented by Contractors from Local Villagers

38. By the end of 2008, the contractors of 26 contracts rented 512 mechanical plants from local farmers in the project area. Assuming that each mechanical plant is used for 4 months on site at a monthly rent of 5,000 CNY, local farmers in the project area will earn 10,240,000 CNY in total.

5.3 Survey of Houses Rented by Contractors in the Project Area

39. In 2008, contractors of 26 contracts totally spent 2,500,000 CNY renting houses of local farmers or urban residents in the project area as offices or temporary residence and generated an additional revenue of 2,500,000 CNY to local population.

5.4 Evaluation on additional job opportunities and income provided by the contractors to local population in the project area

40. During the construction of the road project, the contractors have done their best to provide additional job opportunities and revenues to the local farmer, in particular those affected by land acquisition and resettlement in accordance with the requirements of ADB and contracts signed with the PIU. The contractors tried all they can to rent mechanical plants of local farmers to contribute to local economy and reduce negative impact on local affected people due to road construction and land acquisition. Statistics of labor employment and machinery lease of the 26 contracts reveal that the contractors took active actions to provide additional job opportunities and revenue for local farmers and affected population as required by the PIU.

29 Statistics of Employment of Local Labor by the Project (2008)

Statistics of Employment of Local Labor by the Project Number of Number of Days input House Rent Mechanical Completed Time Including: into the & Land Rent Plants by Total Skilled Farmer Ethnic AP of land Women Poor Salary Salary Training construction Rented Worker Minority acquisition People Contractor Person Person CNY/month Person Person Person Person Person CNY/month Person/times Day/person CNY/month No. month c01 352 43 3000 180 5 100 20 4 1200 253 30 0 Ding Limei c02 202 30 1500 40 4 30 30 68 1500 4300 30 1500 12 Cong Lin c03 185 32 1500 38 4 31 26 54 1100 4300 30 1500 10 Zhang Qiang

Total foreachcontract in2008 c04 222 35 2400 110 6 28 18 25 1800 1459 30 5000 18 Wang Naikun c05 80 8 1800 60 0 0 5 7 1200 115 30 19 Li Chengming c06 417 95 2100 158 0 108 56 1200 1100 21 3300 25 Liu Fuyun c07 643 124 2500 324 41 0 0 154 1500 4711 30 16 Wu Xuehui c08 114 35 1800 55 0 0 8 16 1800 157 30 4500 20 c09 322 25 2500 234 5 34 12 12 1500 660 20-30 1500 23 c10 526 88 2500 438 0 0 0 0 1200 438 30 0 c11 297 35 2000 220 0 0 35 7 1050 955 28-31 28000 0 Yao Zhongjie c12 390 2000 245 15 9 121 1500 2940 25 15000 30 Gao Li c13 458 56 1500 160 16 32 64 130 1300 501 25-28 7500 34

30 Statistics of Employment of Local Labor by the Project Number of Number of Days input House Rent Mechanical Completed Time Including: into the & Land Rent Plants by Total Skilled Farmer Ethnic AP of land Women Poor Salary Salary Training construction Rented Worker Minority acquisition People c14 205 15 2000 132 8 30 20 1800 230 30 14350 32 c15 100 5 2200 58 0 22 10 5 1600 217 20-30 23540 50 Cui Yanbo c16 432 36 2900 203 8 87 20 78 1200 196 24 8 Li Ying c17 234 25 3000 192 0 0 17 0 1500 10 24-30 22 Zhang Wei c18 368 40 1500 118 0 33 42 135 1500 736 18-24 30000 24 Ying Chengjun c19 227 30 2500 150 6 4 25 12 1200 1305 30 20000 40 Zhang Chao c20 215 37 3000 120 0 18 20 20 1500 432 30 8000 24 Sun Zhigang c21 274 148 3000 102 0 7 10 7 1800 25 30 20000 16 Cao Chunshui c22 6000 23 Huang Guiping c23 20 0 0 0 20 0 0 1200 0 30 5500 36 c24 154 12 2600 128 0 14 0 0 2000 0 30 10500 18 He Yunfu c25 15 15 0 0 0 0 1500 100 30 1100 0 Cui Yanbo c26 218 147 12 15 24 20 1800 58 30 2000 12 Total for 2008 6670 954 3627 130 583 481 895 25198 512

31 6. Conclusion and Recommendation

6.1 Conclusion

41. Data involved in this M&E mainly comes from the actual statistics of land acquisition and resettlement and compensation provided by Linquan PIU. The external monitoring agency conducted a statistical analysis of the statistics provided by the Department of Planning and the Department of Coordination of Linquan PIU and the contractors and carried out a sample survey of some towns and townships and AP of land acquisition in Baiquan, Qing’an, Tieli and Linkou. This M&E Report was developed based on this analysis and sample survey and in comparison with the 2006 RP.

42. By February 28, 2009, all the land acquisition and house demolition as well as the compensation work for the main line works are 100% completed, with nothing found noncompliant with the requirements of the RP.

43. The farmers are satisfied with the standards for compensation of the fragmentary land and buffer land resulting from construction of the Project. Since measurement of such land is not fully completed yet, payment of compensation is not fully carried out yet. It is estimated that measurement and compensation for the fragmentary land and buffer land will be fully finished by the end of 2009.

44. The issue of relocation of the three enterprises in Tonghe County was very well addressed through negotiation. Tonghe Agricultural Machinery Company is in normal operation and is not affected by the resettlement. Since the other two enterprises had been out of business for years before resettlement, the resettlement did not produce any impacts on the boss and employees of these private enterprises.

45. APs on Dongxing Street in Tonghe Town of Tonghe County were properly resettled. The People’s Government of Tonghe County constructed 7 low-cost residential buildings in order to properly resettle these APs with poor affordability. Consequently, their living conditions were significantly improved.

32 46. The local governments along the highway are responsible for the land acquisition and resettlement work for the linking roads and the compensation expenses are paid from the local finance of the respective counties or cities. Progress of land acquisition and resettlement actually achieved by the different counties and cities is different. In Qing’an County, subgrade earthworks and land acquisition compensation for Qing’an Linking Road are both completed; In Tonghe County, the realignment proposal for Malanghe Linking Road is substantially agreed by the PIU; In Linkou County, land acquisition and resettlement for 5 linking roads finished and these five link roads already under the construction; the other linking roads are still in the stage of land acquisition and resettlement, which is expected to complete in April. Construction of these linking roads will commence in May. It is estimated that all the linking roads will be completed at the same time with the main line by the end of September 2009. Resettlement work for the linking roads is expected to fully complete by the end of 2009.

47. Storms during the construction of Linquan Highway Project resulted in serious scours to the side slopes of subgrade. As a result, some farmlands along the highway were filled up with silts and young crops were affected, resulting in some financial losses to the farmers. For this reason, the affected farmers requested for compensation. Contractors, local governments and villagers are measuring and verifying the area of silted farmland in the affected sections and both PIU and contractors are prepared to make compensation. In order to avoid similar problems in 2009, the contractors have repaired and improved the drainage ditches and side ditches following the requirements of Linquan PIU at the end of the rain season in 2008.

48. In the construction stage, all the contractors have been actively employing local labor in the project area. Approximately 6,670 local farmers were employed in total, including approximately 954 skilled workers, 3,627 non-skilled workers and 130 ethnic minority workers from local farmers. 583 affected households, 481 women workers in the project area and 895 poor workers were employed from the local farmers. Training was provided to 25,198 local farmers in total. Due to the construction of Linquan Highway Project, a large number of job opportunities were provided to local farmers and an additional income of 40.2million CNY was generated. Implementation of the Project improved the income of the local farmers. In addition, contractors rented mechanical plants and houses of local farmers and generated an additional income of 12.7 million CNY for local farmers.

33 6.2 Recommendation

49. In order to make sure the linking road works are completed on schedule, it is recommended that Linquan PIU make stronger efforts in coordinating with the governments of counties and cities along the highway and ensure the measurement and compensation work for land acquisition and resettlement are carried out as soon as possible.

50. The PIU should urge the governments of counties and cities along the highway to carry out the measurement of the fragmentary land and buffer land as soon as possible so that suitable compensation is made to such land.

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