Updated Resettlement Plan

November 2016

PRC: Xi’an Urban Road Network Improvement Project

Prepared by Xi’an Urban Road Network Improvement Project Management Office for the Asian Development Bank. This is an updated version of the draft originally posted in April 2011 available on https://www.adb.org/projects/documents/xian-urban-road-network-improvement- project-0

This updated resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

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Xi’an Urban Road Network Improvement Project

– Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base

Resettlement Plan (updated)

Xi’an Urban Road Network Improvement Project Management Office November 2016

Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Contents

Commitment Letter ...... 1

Executive Summary ...... 2

1 Project Description ...... 10

1.1 Project background ...... 10 1.2 Project Introduction ...... 11 1.2.1 Contents of the project ...... 11 1.2.2 The socioeconomic significance of the project ...... 13 1.2.3 Measures to avoid or minimize land acquisition and house demolition ...... 13 1.2.4 The basic information and impact of LA&R of the project (Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base) ...... 14

2 Project impact ...... 15

2.1 Project impact categories ...... 15 2.2 Survey method and process ...... 15 2.2.1 Description on the early stage survey ...... 15 2.2.2 Data source and survey method ...... 16 2.2.3 Data of impact of land acquisition, demolition and relocation of the project ...... 17 2.3 Permanent Land Acquisition for the Project ...... 20 2.4 Housing Demolition ...... 20 2.5 Survey on basic information of affected families of vulnerable groups ...... 21 2.6 Affected auxiliary facilities and infrastructure ...... 21

3 Socioeconomic Features and Impact Evaluation ...... 22

3.1 Socioeconomic background of the project city ...... 22 3.2 Socio-economic status of affected sub-districts ...... 23 3.3 Socio- economic sampling survey of affected households in the project affected area .. 24 3.3.1 Demographic information ...... 24 3.3.2 Socioeconomic situation of sampling households ...... 26

4 Participation, Consultation and Resolution of Complaints ...... 28

4.1 Definition of stakeholder ...... 28 4.2 Consultation during the preparation stage ...... 28 4.2.1 Public participation and consultation of stage 2 ...... 28 4.2.2 Consultation implementation plan ...... 31 4.3 Disclosure ...... 31 4.4 Grievance redress mechanisms ...... 31 4.5 ADB accountability mechanism (http://www.adb.org/) ...... 33 i Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 5 Legal Framework and Policies ...... 35

5.1 Overview of relevant laws, regulations and policies on relocation and resettlement ..... 35 5.2 ADB’s Policy on Involuntary Resettlement ...... 37 5.3 Resettlement Principle and Compensation Qualification ...... 39 5.3.1 Compensation qualification and beneficiaries ...... 39 5.3.2 Use of collective land ...... 39 5.3.3 Compensation standard for the ancillary facilities and land taxes/fees ...... 39 5.4 Entitlement Matrix ...... 40

6 Relocation and Resettlement Measures ...... 42

6.1 Objectives ...... 42 6.2 Housing replacement ...... 42 6.3 Economic rehabilitation program ...... 42 6.4 Rehabilitation plan for enterprises and institutions ...... 43 6.5 Economic rehabilitation program for vulnerable group ...... 44 6.6 Special facilities ...... 44

7 Budget for Relocation and Resettlement Fees ...... 45

7.1 Land acquisition and demotion fees ...... 45 7.2 Investment plan in years ...... 46 7.3 Fund appropriation flow and procedures ...... 46

8 Institutional Arrangements and Duties ...... 48

8.1 Relevant institutions respect to resettlement ...... 48 8.2 Institution Structure ...... 51 8.3 Institution qualifications and personnel allocation ...... 52 8.4 Measures for relocation institutional capacity building ...... 53

9 Relocation Implementation Schedule ...... 54

10 Monitoring and Evaluation ...... 55

10.1 Internal monitoring ...... 55 10.1.1 Purpose ...... 55 10.1.2 The contents of the internal monitoring ...... 55 10.1.3 Working procedure of internal monitoring institutions ...... 56 10.1.4 Internal monitoring report ...... 57 10.2 External monitoring ...... 58 10.2.1Contents and methods of external monitoring ...... 58 10.2.2 External monitoring report ...... 59 10.3 Evaluation after relocation ...... 60 ii Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 11 Due Diligence Report ...... 61

11.1Project overview ...... 61 11.2 Impacts of land acquisition and demolition ...... 62 11.3 Current progress ...... 63 Table of Contents Table 1 Summary of updated and planned data for land acquisition and demolition impact of the Bus Parking Lot Subproject ...... 5 Table 2 Construction content and scale of the Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base ...... 14 Table 3 Summary of updated and planned data for land acquisition and demolition impact of the Bus Parking Lot Subproject ...... 19 Table 4 Affected attachments and infrastructure by the Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base ...... 21 Table 5 Socioeconomic overview of Xi’an ...... 23 Table 6 Overview of villages and towns/sub-districts affected by land acquisition and demolition ...... 23 Table 7 Basic information of the sampling survey ...... 24 Table 8 Age structure of affected people for sample survey ...... 24 Table 9 Education level of households surveyed ...... 25 Table 10 Table of employment distribution ...... 25 Table 11 Table of income structure of sampling households ...... 26 Table 12 Table of economic information on income and expenditure ...... 26 Table 13 Expenditure pattern of surveyed households ...... 26 Table 14 Ownership of household electric appliances and durable consumer goods ...... 27 Table 15 Information disclosure process and plan ...... 29 Table 16 Public participation process ...... 30 Table 17 Public participation plan ...... 31 Table 18 Compensation standard table for auxiliary facilities and land taxes/fees ...... 40 Table 19 Entitlement matrix ...... 40 Table 20 Details of relocation and resettlement fees of Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base ...... 45 Table 21 Investment plan for resettlement ...... 46 Table 22 Contact information of various organizations ...... 53 Table 23 Planning schedule of land acquisition, demolition and relocation ...... 54 Table 24 Progress report for land acquisition, demolition and resettlement ...... 57 Table 25 Progress of fund use ...... 57 Table 26 Schedule of relocation monitoring and evaluating ...... 59

iii Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Table of figure Figure 1 Project site ...... 16 Figure 2 Steel sheds to be demolished ...... 20 Figure 3 Pigpens to be demolished ...... 20 Figure 4 Age structure of affected people for sample survey ...... 25 Figure 5 Appeal and complaint procedure ...... 33 Figure 6 Fund flow diagram ...... 47 Figure 7 Resettlement Institution Structure of the Project ...... 52 Figure 8 refers to the location profile of project area ...... 62 Figure 9 Land Acquisition Agreement ...... 65 Figure 10 Compensation and payment voucher for ground attachments ...... 70 Figure 11 site picture ...... 72

iv Scanned by CamScanner Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Executive Summary

1 Background 1. In order to better solve urban traffic problem, relieve traffic jam, improve road safety, enhance city’s carrier function and guarantee rapid, healthy and orderly development of the city, Xi’an Municipal People’s Government approved the Xi’an Road Network Improvement and Public Facilities Construction Project with part of the loan from ADB in 2011. The Project includes five outputs, namely, (i) road bridge improvement; (ii) pedestrian safety; (iii) comprehensive traffic facilities;(iv) intelligent transport system (ITS) and (v) environment protection enhancement. Among the five outputs, the road bridge improvement and the comprehensive traffic facilities need land acquisition and resettlement (LA&R). 2. In July 2016, the project implementation agency approved the preliminary design of the Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base, This Updated Resettlement Plan (RP) describes Bus Parking Lot and Petrol/Gas Station for the Parking Lot of Xi’an National Civil Aerospace Industrial Base. Because the Petrol/Gas Station located in the Bus Parking Lot, The report referred to as “Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base". 3. The implementation of Bus Parking Lot and Petrol/Gas Station for the Parking Lot of Xi’an National Civil Aerospace Industrial Base shall cause land acquisition and housing demolition as well as involuntary relocation. On the basis of investigating the impact, the project management office (PMO) formulated the draft project resettlement plan in 2011, which was based on the feasibility study design. In July 2016, the Resettlement Plan for Bus Parking Lot and Petrol/Gas Station for the Parking Lot of Xi’an National Civil Aerospace Industrial Base after determination of the preliminary design proposal, was updated according to the involuntary resettlement policy requirements of ADB as well as the content of the preliminary design proposal. It has been submitted to ADB for approval prior to implementation. The resettlement plan formulation and implementation is designed to ensure that the affected persons (APs) shall suffer the minimum impact and better benefit from the Project. 2. Project overview 4. The project in the RP of 2011 is located in Xi'an National Civil Aerospace Industrial Base in the southeast area of Xi’an City, to the south of Hangtian Avenue, west of Yanyin Road, east of Xi’an Tuberculosis Hospital and Ankang Hospital, and north of The tomb of Zhu Shang with a straight-line distance of 2,900m from the planned terminal of Metro Line 4. On November 24, 2011, the original site for the project was regarded as part of 2 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Qujiang New District in the meeting minutes of issues related to management for overlaps planned for Qujiang New District and Aerospace Industrial Base by Xi'an Municipal People's Government. Besides, there is no bus parking lot in the land plan for Qujiang New District. Afterwards, the Management Committee of Xi'an National Civil Aerospace Industrial Base relocated the project. In the preliminary design confirmed in July 2016, the new site for the project is located within Xi’an National Civil Aerospace Industrial Base in Xinzhaizi Village under Weiqu Subdistrict Office of Chang’an District in the southeast of Xi’an, east of Xi’an-Ankang Expressway, north of the planned South Hangtian Road, west of metro depot, 2,900m away from the terminal station of the planned Metro Line 4. Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base is one of the important measures of the implementation of TDM project, but also one of the city public transportation the "Xi'an hub station planning", bus and subway is to improve the transfer efficiency, improve Xi'an city public traffic, improve public transport capacity and service level, strengthen the important transit hub bus the reliability of safe operation station. After the construction of the project, will be solve the problem of population travel in the southern region to a greater extent. 3. Resettlement Impacts 5. In July 2016, the project implementation agency made adjustments to the implementation plan of Bus Parking Lot and Petrol/Gas Station for the Parking Lot of Xi’an National Civil Aerospace Industrial Base, and completed its preliminary design proposal. In order to reduce the land acquisition and housing demolition impact on affected persons, it is preliminarily designed to modify the construction scheme of the project, thus reduce the impact. 6. The Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base covers an area of 43.35mu. Based on the investigation on the land occupied, Part of the land of affected households is within the project scope and the other part is beyond the scope, then its later use will be affected if only part of the land is acquired, so the whole land shall be acquired and the project needs to acquire permanent land of 62.3mu1， including the land of 4.98mu for the petrol/gas station. All the project land is within the Xinzhaizi Village under Weiqu Subdistrict Office of Chang’an District, and 30 households with 166 people are affected. 7. The demolition involves 2,938.86 m2 of houses and ground attachments Pigpen and steel shed are unused now and 2 households2 with 16 people are directly affected. The 16

1 The land has already acquired in 2012, see the due diligence report. 2 The 2 affected households are among the 30 households affected by land acquisition. 3 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) affected people are family members, with no employed workers.

4 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Table 1 Summary of updated and planned data for land acquisition and demolition impact of the Bus Parking Lot Subproject

Permanent land acquisition Total demolished Demolition of enterprises and public (mu.) area (m2) Residential housing demolition institutions Demolition of attachments Number of people Number of Number of Units involved Number of people households Number of people households (HH) (person) (one) involved (person) involved (HH) involved (person) Origin Updated Original Updated Original Updated Original Updated Original Updated Original Updated Original Updated Original Updated Subproject al plan plan plan plan plan plan plan plan plan plan plan plan plan plan plan plan Bus Parking Lot of Xi’an National Civil Aerospace Industrial Base 100.00 62.30 37,000 2938.86 0 0 0 0 3 0 300 0 0 2 0 16 Petrol/Gas Station of Xi’an National Civil Aerospace Industrial Base 8.25 4.98 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 4. Policy Framework and Right & Interest 8. The RP is based on relevant laws and regulations of PRC and Safeguards Policy Statement of ADB (June 2009). The main laws and policy basis for permanent land acquisition of the project include: Land Administration Law of PRC (2004), The State Council Decision to Deepen Reform and Strictly Enforce Land Administration (Guo Fa [2004] No.28) and Methods of Shaanxi Province Implementing Land Administration Law of PRC (2000); Notice of Xi’an Municipal People’s Government on Enforcing Procedures Execution of Land Acquisition and Housing Demolition in Municipal Road (Shi Zheng Fa [2003] No.39), etc. House demolition is based on the Regulations on the Expropriation of Houses on State-owned Land and Compensation (January 2011); Housing Expropriation and Compensation Methods on State-owned Land in Xi’an City (Shi Zheng Fa (2012) No.93) passed in the 3rd executive meeting of the Municipal Government on March 13, 2012; Assessment Method of House Expropriation of State-owned Land in Xi’an City (Shi Zheng Fa (2012) No. 29); Notice of Xi’an Municipal People’s Government on Endowment Insurance of New Land-lost Farmers (Shi Zheng Fa [2008] No.84)Measures for the Implementation of Employment and Social Security for New Land-lost Farmers in Chang’an District of Xi’an (Chang Zheng Ban Fa [2008] No.171) 5. Compensation Standard, Income, and Livelihood Restoration Scheme 9. The land acquisition policy of the project is mainly based on Methods of Shaanxi Province Implementing Land Administration Law of PRC (2000); Notice of Xi’an Municipal People’s Government on Enforcing Procedures Execution of Land Acquisition and House Demolition in Municipal Road (Shi Zheng Fa [2003] No.39), Measures on Acquisition and Compensation of Housing on State-owned Land of Xi’an City (Shi Zheng Fa (2012) No.93), etc. They are formulated based on detailed investigation on the project impact. Main compensation and resettlement principles are as follows: I. The project land is collective land obtained through acquisition. The land compensation standard for the project is based on the Notice of Xi’an Municipal People’s Government on Improving the Formalities of Land Acquisition and Demolition for Municipal Road Construction (Shi Zheng Fa (2003) No.39 Document): “the unified compensation for land acquisition for municipal road construction nationwide is usually less than CNY 60,000 /mu”. According to the compensation standard by local government, the compensation fees (including the compensation for land and resettlement) are determined to be CNY 68,000 / mu. compensation standard for collective land is higher than that of CNY 60,000 Yuan per mu in

6 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Resettlement Plan in 2010. The compensation for land, demolished houses, and other ground attachments will be directly paid to the affected people. II. The compensation standard for ground attachments and special facilities of water, power, etc. will also been based on the “replacement price”. Compensation standard for attachments is the same as that in Resettlement Plan in 2010. 10. Before the measurement and inventory of ground attachments of the project, the affected households determine not to raise pigs in the steel sheds and pigpens to be demolished after selling all pigs they have raised, so as to support the project implementation. Currently, the pigpens are unused. Based on the investigation on resettlement willingness, the 2 households select currency compensation. And they will be given compensation based on the evaluated price. For the affected households, Weiqu Subdistrict Office will register the land-lost farmers within the scope of new land acquired, and after full investigation, provide training of various skills such as horticulture, call center operator, commodity marketing, housekeeping, public security, etc., putting forth efforts to improve the employment and entrepreneurial ability of unemployed farmers. After the training, examination and evaluation shall be conducted. The qualified farmers will obtain the grading certificate from Labor Department, and the subdistrict employment service center will establish talents database to recommend employment to the society, thus making the affected villagers qualified for the work in surrounding enterprises and improving their economic income. Meanwhile, the Administrative Committee of Xi’an National Civil Aerospace Industrial Base will arrange work first for the affected people who are willing to engage in municipal cleaning with monthly salary of CNY 2,000 in Chang’an District. The affected people will be given priority on equal conditions for the recruitment of surrounding enterprises such as CASC No.6 Institute, Aohua Investment Company, aviation enterprises, etc. 11. Compared to the original RP, this updated RP surveyed and determined the impact of the subproject and formulated more detailed contents and schemes for resettlement policies. By now, the concerned parties agreed on the primary compensation policy for affected person, while some further detailed measures shall be formulated and carried out prior to implementation. 6. Information Disclosure, Participation, and Grievances 12. All of the affected families and basic-level governments have been involved in the project impact and social-economic surveys. On various occasions during meetings, interviews, focus group discussions, public consultation workshops, and community consultation

7 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) meetings, representatives of all parties have participated in the project planning and RP formulation. These measures shall guarantee full protection for legal rights and interests of affected persons. As compensation for the livelihood of affected persons, an important work for project implementation is to provide more labor guarantees for affected persons. Particular attention shall be paid to ensuring that there is full and effective involvement and participation of women in this process. The new information booklet is being formulated and shall be handed out to the affected persons before the end of December 2016. The information booklet contains the resettlement methods, project schedule, compensation standard for land and other assets, relocation and economic rehabilitation strategies and grievance redress mechanisms. This updated RP shall also be posted on the ADB website upon approval. 7. Plan Arrangement and Responsible Agency 13. Xi’an PMO has at least two full-time staff responsible for RP implementation. The PMO takes the responsibilities for land acquisition and resettlement, house demolition and coordination, land acquisition and resettlement fee payment. They will work closely with relevant enterprise, land administration bureaus and house demolition offices, and will be responsible for supervision and monitoring of resettlement (e.g. delivery of entitlements, restoration of incomes, provision of replacement land, and other economic measures). In addition, before ADB reviews and approves this Updated RP, resettlement work cannot be started. 8. Expenses 14. According to the feasibility studies report of the project, the overall direct fee for resettlement of the project is about CNY 12.9957 million (price of 2014), including 10% unexpected expenses. 33% has been paid in early stage, and it is planned to pay 67% in 2016. It shall be adjusted based on the actual condition during the implementation process of the project. The project implementation agency shall guarantee that the resettlement fund is sufficient to solve all issues relating to resettlement. 9. Monitoring and Report 15. Internal and external monitoring of RP implementation has commenced for other subprojects. The Implementing Unit will carry out internal supervision and monitoring, regularly formulate report and submit to ADB with the contents of schedule of resettlement implementation. The emphasis is to conform to the requirements of resettlement plan and compensation policy. In order to realize effective connection with the Xi’an urban village reconstruction project, the project implementation agency employed independent institution to conduct external monitoring and evaluation at the

8 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) end of May 2013, which has been changed to Shaanxi Engineering Research Center of River on July 20, 20153, thus guaranteeing that each milestone activity of the project land acquisition and relocation receives effective monitoring and evaluation. In future, a monitoring and evaluation (M&E) report on the project resettlement schedule, compensation fee payment and other measures shall be made every half year and submitted to the project implementation agency and ADB, ensuring that the affected persons can maintain its living level without damage from the project. M&E reports will also be disclosed to the affected communities.

3 Based on Notice of Xi’an Municipal People’s Government on Issuing 2013-2014 Municipal Units and Government Procurement Catalogue and Procurement Limit Standard, for the service projects, if the single or batch amount is no less than CNY 800,000 Yuan, open bidding is required. Therefore, the project implementation agency conducted open bidding, and Shaanxi Engineering Research Center of River won the bid.

9 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 1 Project Description

1.1 Project background 16. Xi’an is a world famous historical and cultural city, an important centre for scientific research, higher education and high-tech industry in China, as well as one of the central cities in Western China and Longhai-Lanxin new area. 17. As the important supporting point of Western China Development strategy and the window city for reform and opening up of Western China, in recent years, Xi’an has seized the opportunity of Western China Development, relied on its unique historic, economic, cultural and location advantages as well as industrial advantages in education, scientific research, equipment manufacturing and high technology, and realized strong social and economic development, further expansion of city skeleton, further acceleration of urban-rural integration and improvement of city functions, under the guidance of city development idea of “internationalization, marketization, humanization and ecology”. A layout that consists of “five zones, one park and two bases” has taken shape and the construction of infrastructure within the zone is quickened obviously. High-tech Industrial Development Zone and Economic-technological Developmental Zone boast obvious effect, Qujiang New District has rapid development and Chanba Ecological Area, Yanliang National Aviation Hi-tech Industry Base, Xi’an Aerospace Science and Technology Industry Base and Xi’an International Trade and Logistics Park are established, which is a good base for future investment promotion. 18. As the basis of urban development, the urban road network is an effective guarantee for normal operation of all basic functions of the city as well as promotion of social and economic development. In recent years, Xi’an Municipal People’s Government has invested a lot of money for quick construction of urban traffic, and construction standard, service level and operating efficiency of urban traffic infrastructure have been greatly improved, forcefully supporting the national economic and social development of the city. Currently, the first ring-road, the second ring-road, the east-west axis road, the south-north axis road and eight radials now provide the main linkages in the road network. The third ring-road and three connecting roads have been built, elevated expressway engineering of phase I (east and west sections) have been completed and open to traffic, and the roads in the High-tech Industrial Developmental Zone, the Economic-technological Developmental Zone, and the Qujiang New District are available. 19. The urban traffic of Xi’an still has lots of problems due to restrictions from various

10 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) factors and it is hard to adapt to the requirements for urban social and economic development. The road network is still not very efficient in terms of urban road construction: the links between different roads are limited, some roads have too much traffic, and there are a lot of traffic jams. It is not easy to enter or leave the city: it is difficult to connect with the expressways. In the old downtown area, the east-west and south-north arteries are under great pressure. There are few pedestrian crossing facilities, and pedestrians, motor vehicles and non-motor vehicles intermingle in a manner that impacts all three adversely. Lack of parking facilities forces vehicles to park on the side of the road, exacerbating traffic congestion. The problems and contradictions associated with the environment, energy conservation and land resources caused by traffic are still much highlighted. 20. With the coming of “low-carbon era”, it is necessary to build an efficient, convenient, and environmentally-friendly modern transport network, improve urban infrastructure system and overall enhance urban service functions. This is the necessary requirement for city development. It is to achieve this that Xi’an City decided to make use of an ADB loan. 21. In April 2009, according to Notice of National Commission of Development and Reform on China Asking for Instruction for Optional ADB Loan-aided Project Plan 2009-2011, the Xi’an Urban Road Network Improvement Project was included in the optional ADB load-aided project list of the Ministry of Finance of China for 2009-2011. In November 2009, Xi’an Municipal People’s Government empowered the Xi’an Commission of Urban-Rural Development as the project Executing Agency and Xi’an Infrastructure Construction Investment Group Co. Ltd. as the project Implementing Agency in order to prepare for the project. The Executing Board of Directors of ADB approved the Xi’an Urban Road Network Improvement Project in October 2011. 1.2 Project Introduction 1.2.1 Contents of the project 22. Xi’an Urban Road Network Improvement Project (hereafter referred to as the Project) was a proposed project using foreign fund approved by the National Development and Reform Commission and the Ministry of Finance in 2011. Executing Board of Directors of ADB approved the Xi’an Urban Road Network Improvement Project in 2011. ADB shall supply USD 150 million loan for the Project, and the other construction fund shall be from Xi’an Municipal People’s Government and loans from domestic banks. 23. The Project includes five outputs, namely, (i) road bridge improvement; (ii) pedestrian safety; (iii) comprehensive traffic facilities; (iv) traffic control system; and (v) environment protection enhancement. The static investment of the Project is CNY 2.884

11 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) billion. In consideration of the unforeseen expenses, the dynamic total investment becomes CNY 3.08 billion(the same below). 24. Output 1, Road Bridge Improvement Output: It contains 9 subprojects (items), that is, west section of Keji 2nd Road (West Belt Expressway---Zhangba North Road), Dazhai Road (Yanhuan Road ---West 3rd Ring Road), Kunming Road, Zhuhong Road---North 2nd Ring Road Interchange, Zhuhong Road--- Fengcheng 4th Road Interchange, Hongmiaopo Interchange, Xinghuo Road Interchange, etc. After completion of the output, the 2nd Ring Road and 3rd Ring Road are effectively connected and a road network with full radiation is formed. The role of 3rd Ring Road as the urban trunk road is further strengthened. The purpose of building these items is to combine development trend of the city, to improve the urban road system, to reduce the traffic current on urban roads, to improve the capacity of the urban roads, and to strengthen the connection between development zone and the downtown. Then the traffic in the city is safe, clear, convenient and orderly. The implementation time of the road network improvement output shall be 5 years, from 2013 to 2017. 25. Output 2, Pedestrian Safety: This output shall involve pedestrian crossing safety improvements at 125 urban intersections within 3rd Ring Road in the urban area of Xi’an, optimize signal timing dial, setting of safety island, intersection canalization, etc., and guarantee the pedestrian safety and improve capacity of the intersection. The proposed budget is CNY 120 million. There are no LA&R impacts anticipated for this output. 26. Output 3, Comprehensive Traffic Facilities: This output includes construction of bus parking lot, subway transfer station, multistory parking garage and gas station. The total proposed budget is CNY 340 million. There are some LA&R impacts anticipated for this output which shall be addressed in a subsequent updated RP. 27. Output 4, Intelligent Transport Systems (ITS): Based on the ITS completed as part of the first phases of ADB and WB Projects, this output shall focus on the 3rd Ring Road to improve intelligent traffic management of the urban area, dynamic traffic information collecting and dissemination system, traffic video monitoring and control, traffic rule violation automatic monitoring system, road safety education and road right sharing plan. The proposed budget is CNY 40 million. There are no LA&R impacts anticipated for this output. 28. Output 5, Environmental Protection Enhancement: This output shall improve the exhaust emission management system of motor vehicles in Xi’an, exhaust testing system of large vehicles and air quality data collection system. The proposed budget for the three is CNY 35 million. There are no LA&R impacts anticipated for this output. 12 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 1.2.2 The socioeconomic significance of the project 29. The implementation of Xi’an Urban Road Network Improvement Project with the Loan of ADB is an important link for the road network in Xi’an, and shall help further improve urban layout, overall enhance urban service functions and urban environment, create urban features, better life quality and promote sustainable, rapid, coordinated and healthy development of the city. ò it is a pre-requisite for the successful implementation of overall development plan of Xi’an ò it shall facilitate socioeconomic development and improve the industrial structure ò it shall improve the comprehensive traffic transportation system of Xi’an and ease the traffic pressure in the downtown area ò it shall strengthen the organic connection between different industrial zones ò it shall facilitate tourism in Xi’an ò it shall improve residents’ living conditions ò it shall improve drainage, and ò it shall raise the value of the land in the vicinity of the road construction 1.2.3 Measures to avoid or minimize land acquisition and house demolition 30. The basic principle for project implementation is the avoidance or minimization of any negative impacts on socioeconomic development and/or people’s lives. The preparatory work undertaken in all links reflects this principle. During the survey and design stage of the project, the project was discussed by local government representatives and experts. It was agreed that, with not decreasing technical standards and satisfying the standards associated with environment protection, the location and direction of the project would be decided according to the following principles: ò Design department optimizes the design as much as possible and avoids or tries to decrease occupation of high quality cultivated land. ò Avoid human landscape (including religious activity place of temples) and key historic preservation unit. ò Avoid or try to reduce occupation of existing or planned residential areas (rural and urban). ò Avoid or try to reduce occupation of environmentally sensitive areas, and ò Selection of relocation site would be integrated into local development planning. 31. In fact, during the stage of feasibility studies, all outputs have two or more construction proposals. According to the above requirements, comprehensive analysis is done for the feasibility of the project engineering, environmental protection and land acquisition and 13 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) demolition and the best proposal is selected. 1.2.4 The basic information and impact of LA&R of the project (Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base) 32. In July 2016, the project implementation agency made adjustment to the implementation plan of Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base subproject, and completed the preliminary design proposal. See Table 2 for details.

Table 2 Construction content and scale of the Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Engineering Feasible construction Initially-designed No. Type Engineering name location scale construction scale to the south of Total building area: Hangtian 2 Avenue, west 9,145 m . Area of of Yanyin office building: Maintenance shop of Road, east of 2 Bus Parking Lot of 7,488m2, complex of 2,542 m ; area of Bus Xi’an Xi’an National 7,500m2, office power center: 1 parking Tuberculosis 2 Civil Aerospace building of 5,000m , 2 lot Hospital and 360 m ; area of Industrial Base and parking lot of Ankang 30,850m2. maintenance shop: Hospital, and 5,546 m2; building north of The tomb of Zhu area: 7.48mu. Shang Occupied area of 8.25mu, building area of 2.12mu, total building area Occupied area of 2 of 1,411.0m , station area: 5.0mu. and designed daily Total building area: Xinzhaizi 1.81mu; total floor Petrol/Gas Station gas supply Village under area: 697.0m2. of the Bus Parking capacity of Weiqu Designed scale: Petrol/gas Lot of Xi’an 20,000Nm3/d. Subdistrict 10,000 Nm3/d; station National Civil Office of Business scale maximum daily Aerospace Chang’an designed for the refueling capacity of Industrial Base District station: annual gas gasoline: about 16t; supply of 7 million maximum daily m3, annual refueling capacity of gasoline supply of diesel: 18t. 1,400t, annual diesel supply of 2,100t.

14 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 2 Project impact

2.1 Project impact categories 33. According to the survey, the project shall have the following impacts: (1) Impact of loss of land acquisition/ occupation (2) Impact of auxiliary facilities and affected residents (3) Impact of loss of ground auxiliary facilities and infrastructure 2.2 Survey method and process 34. The survey scope on impact of land acquisition and resettlement (LA&R) for this stage of the project is based on the detailed design of the project. The results of detailed measurement survey are the basis for this updated RP. 35. Based on the scope determined according to the feasibility study report of the project, the project made survey and statistics on the impact of LA&R. When the preliminary design was finalized, the Project made a detailed measurement survey (DMS) on the effect of LA&R. The details of the various surveys are as follows. 2.2.1 Description on the early stage survey 36. The project in the RP of 2011 is located in Xi'an National Civil Aerospace Industrial Base in the southeast area of Xi’an City, to the south of Hangtian Avenue, west of Yanyin Road, east of Xi’an Tuberculosis Hospital and Ankang Hospital, and north of The tomb of Zhu Shang with a straight-line distance of 2,900m from the planned terminal of Metro Line 4. On November 24, 2011, the original site for the project was regarded as part of Qujiang New District in the meeting minutes of issues related to management for overlaps planned for Qujiang New District and Aerospace Industrial Base by Xi'an Municipal People's Government. Besides, there is no bus parking lot in the land plan for Qujiang New District. Afterwards, the Management Committee of Xi'an National Civil Aerospace Industrial Base relocated the project. In the preliminary design confirmed in July 2016, the new site for the project is located in Xinzhaizi Village under Weiqu Subdistrict Office of Chang’an District.

15 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Figure 1 Project site

37. In July 2016, the project implementing agency completed the preliminary design scheme for the Bus Parking Lot of Xi’an National Civil Aerospace Industrial Base, conducted site investigation, updated the data in the resettlement plan, and implemented due diligence for the land acquisition and demolition of the bus parking lot subproject (see the due diligence report in the attachment). The investigation involves the impact area of the Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base, and the quantity of collective land, ground attachments, and infrastructures in Xinzhaizi Village under Weiqu Subdistrict Office of Chang’an District. This report is made based on the analysis and processing of the above investigation data and information as well as national, local and ADB policies on land acquisition, demolition, and resettlement. 2.2.2 Data source and survey method 38. The project survey has a short duration of time and a wide range of coverage. Thus, the project impact background materials and basic data collection mainly cover two aspects: A. Document and literature consulting and data collection. Collect and sort out the project information and related survey materials and statistic materials provided by related local

16 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) governmental departments and project implementation agency. B. On-site measurement and data collection, supplemented by symposium and direct communication with concerned interest groups to further verify materials and data. The survey on land acquisition,, housing demolition, auxiliary facilities, scattered trees,special facilities, began in 2011, After the preliminary design was completed in 2016, the impact of the physical quantity was checked. The survey content includes: land acquisition survey, survey on population affected by land acquisition, housing demolition and auxiliary facilities survey, scattered trees survey, enterprise survey and special facilities survey. ò Land acquisition survey: For the survey on various kinds of land, the design unit determines the land acquisition scope on the site and then the project impact survey group makes statistics about the area based on ownership and land category as well as the current utilization of the land. ò Survey on population affected: Sampling survey on affected population, including nationality, age, education, employment, etc. ò Survey on housing demolition and auxiliary facilities: The housing demolition and auxiliary facilities survey is in the form of household by household and registration and statistics are made based on ownership and structure. The registration and statistics are done for auxiliary facilities one by one. ò Scattered trees survey: On-site counting is executed for the scattered trees within the scope of project land acquisition so as to distinguish fruit trees and others, and registration and statistics are done based on the categories of tree. ò Special facilities survey: For the survey on the special facilities of electric power and telecommunication affected by project, the survey staff and related personnel from the competent departments conduct onsite verification and registration based on the existing materials of all competent departments. 2.2.3 Data of impact of land acquisition, demolition and relocation of the project 39. The Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base covers an area of 43.35mu. Based on the investigation on the land occupied, Part of the land of affected households is within the project scope and the other part is beyond the scope, then its later use will be affected if only part of the land is acquired, so the whole land shall be acquired and the project needs to acquire permanent land of 62.3mu, including the land of 4.98mu for the petrol/gas station. and 30 households with 166 people are affected.The demolition involves 2,938.86 m2 of houses and ground attachments. 40. Based on the comparison of land occupation impact data and the planned impact data for 17 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) the Bus Parking Lot Subproject of Xi’an National Aerospace Industrial Base, it is found out that there are changes in the total quantity of land occupation impact and quantity of demolished houses and affected enterprises and public institutions. According to the original feasible scheme of the Bus Parking Lot, permanent land occupation is planned to be 100mu, area of demolished houses is 37,000m2, and the number of affected enterprises and public institutions is 3. Compared to the original scheme, the area of permanent land is reduced to 62.3mu, total demolished area is 4.41mu, and the number of people affected by the demolition of attachments is 16 (see Table 3) in the new design scheme. According to the original feasible scheme of the Petrol/Gas Station of Xi’an National Civil Aerospace Industrial Base, the permanent land is planned to be 8.25mu. Compared with the original scheme, the area of permanent land occupation decreases to 4.984mu in the new design scheme. Data are mainly changed to avoid or minimize the impact of land acquisition and demolition on the masses in project implementation area, so the scheme is optimized to reduce the project impact.

18 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Table 3 Summary of updated and planned data for land acquisition and demolition impact of the Bus Parking Lot Subproject

Permanent land Total demolished Demolition of enterprises and public acquisition (mu.) area (mu) Residential housing demolition institutions Demolition of attachments Number of people Number of Number of Units involved Number of people households Number of people households (HH) (person) (one) involved (person) involved (HH) involved (person) Original Updated Original Updated Original Updated Original Updated Original Updated Original Updated Original Updated Original Updated Subproject plan plan plan plan plan plan plan plan plan plan plan plan plan plan plan plan Bus Parking Lot of Xi’an National Civil Aerospace Industrial Base 100 62.3 55.49 4.41 0 0 0 0 3 0 300 0 0 2 0 16 Petrol/Gas Station of Xi’an National Civil Aerospace Industrial Base 8.25 4.98 0 0 0 0 0 0 0 0 0 0 0 0 0 0

19 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 2.3 Permanent Land Acquisition for the Project 41. Land acquisition of the project involves the collective land in one subdistrict office and one village, namely, Xinzhaizi Village under Weiqu Subdistrict Office in Chang’an District. Collective land (farmland) of 62.3 mu is acquired in total4. 2.4 Housing Demolition 42. This project involves demolition of auxiliary facilities except residential houses, enterprises, and public institutions, with demolished area of 4.41mu. 2 households with 16 people are affected. The 16 affected people are family members, with no employed workers. .Besides, the demolition involves steel shed of 2,496 m2 and pigpen of 442.86m2. Steel shed is a supporting facility of pigpen currently, the steel shed and pigpen to be demolished are unused5.

Figure 2 Steel sheds to be demolished

Figure 3 Pigpens to be demolished

4 The collective land involved in this project was acquired by the Land Acquisition, Demolition, and Resettlement Office of Xi’an National Civil Aerospace Industrial Base in 2012. See details in the due diligence report. 5 Before the measurement and inventory of ground attachments of the project, the affected households determine not to raise pigs in the steel sheds and pigpens after selling all pigs they have raised, so as to support the project implementation. Currently, the pigpens are unused. 20 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 2.5 Survey on basic information of affected families of vulnerable groups 43. After survey on affected residents of Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Baseproject, the vulnerable groups are not found (household receiving subsistence allowances, the disabled household, household with the aged, and the single parent family). Therefore, the project shall not specially set up the policies for the support of the vulnerable groups. During the implementation, in case of affected households with life difficulties that require assistance, the extra assistance shall be given after evaluation based on the actual situation. 2.6 Affected auxiliary facilities and infrastructure 44. The project implementing agency makes the compensation for or recovering ground attachments and infrastructure including 92,2436 young trees, 2,496m2 of color steel shed, and 442.86m2 of pigpen. The affected special facilities are pumping well, electric pole, water pipe, ditch, and enclosing wall. See Table 4 for the impact in detail.

Table 4 Affected attachments and infrastructure by the Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base

Young tree Enclosing wall Pumping well Electric wire Telecom wire Electric pole

Tree M Set M M Set

Updated Original Updated Original Updated Original Updated Original Updated Original Updated Original plan plan plan plan plan plan plan plan plan plan plan plan

92,243 500 140 50 11 3 0 2,000 0 1,500 4 2

Transformer Water pipe Water channel Color steel shed Pigpen

Set M M M2 M2

Updated Original Updated Original Updated Original Updated Original Updated Original

plan plan plan plan plan plan plan plan plan plan

0 3 91 900 58 0 2,496 0 442.86 0

6 There are lots of trees on the land to be acquired. 21 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 3 Socioeconomic Features and Impact Evaluation 3.1 Socioeconomic background of the project city 45. As the capital city of Shaanxi Province, Xi'an is one of the four major ancient capitals in the world, enjoying equal fame with Athens, Cairo, and Rome. Xi’an was once the capital of thirteen dynasties in Chinese history, including Zhou, Qin, Han, and Tang. Xi’an National Civil Aerospace Industrial Base is located in Chang’an District, 7km away from the downtown area Bell Tower, 2.8km away from the Belt Highway, and close to Xi’an-Ankang Expressway. Besides, it is near Qinling Mountains to the south, overlooks Qujiang to the north, is adjacent to the urban central axis to the west, and reaches 10,000 mu of forest belt to the east, connecting mountain, water and the city and enjoying beautiful natural environment. 46. In 2015, Chang’an District facilitated “hypernormal development” in the macro-environment of “new normal” economy, realized gross output of CNY 51.27 billion, with growth of 14.2%; added value of the industries above a designated scale CNY 19.032 billion, with growth of 25.6%; fixed asset investment CNY 72.653 billion, with growth of 7.1%; local financial public budget CNY 3.778 billion, with growth of 6.6%; total retail sales of consumer goods CNY 18.337 billion, with growth of 11.8%; urban and rural disposable incomes CNY 32,204 and CNY 15,486, with growth of 8.25% and 9.12% respectively. Besides, the growth of many major economic indexes ranks first among all districts and counties of Xi’an. Under the background of slow economic growth, Chang’an District still maintained high growth and played a leading role in growth. In 2015, Chang’an District Committee and the People’s District focused on key project construction to stabilize growth, protect investments, adjust structures, and benefit the people, continuously improved the investment environment, and centering on the construction of big projects, carefully selected 350 projects with large investment amount, strong support, and high comprehensive benefits in the fields of modern agriculture, new industry, modern service, infrastructure construction, etc., and accomplished investments of CNY 50.293 billion, accounting for 107.72% of the annual plan. 10 municipal key projects under construction achieved investments of CNY 4.208, accounting for 107.48% of the annual plan; 74 cooperative district projects obtained investments of CNY 32.09 billion, accounting for 124.01% of the annual plan, thus generating industrial agglomeration effect and increasing the regional comprehensive strength.

22 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Table 5 Socioeconomic overview of Xi’an Index name Unit 2013 2014 2015

I. population

Total population at the end of the year Ten thousand 806.93 815.29 815.66 male Ten thousand 408.78 412.46 412.23 Female Ten thousand 398.15 402.83 403.43 Natural population growth rate ‰ 4.20 4.64 4.64 II. land area Km2

Land area Km2 10096.81 10096.81 10096.81 Including: cultivated land 10,000mu. 366.23 360.73 356.89 III. working force Ten thousand people 530.71 532.93 528.06 IV. GDP CNY 100 million 4924.97 5492.64 5810.03 V. living condition

Average income of urban residents CNY 33100 36100 39007 Net income per capita of rural residents CNY 12930 14462 15778 Housing area per capita for urban residence m2 33.43 32.06 32.1 Housing area per capita for rural residence m2 67.5 48.83 50.7 Data source: Xi’an statistic yearbook (2013-2015)

3.2 Socio-economic status of affected sub-districts 47. The project will affect the Xinzhaizi Village under Weiqu Subdistrict of Chang’an District in Xi’an. The village is being transformed into an urban community, so most of the villagers work in city although they still have the rural registered permanent residence and farmland. The general information of the affected subdistrict is showed in Table 6. Table 6 Overview of villages and towns/sub-districts affected by land acquisition and demolition Index Unit Weiqu Subdistrict

Total land area km2 51.18

Total population Ten thousand persons 11.51

Female population Ten thousand persons 4.18

Natural population growth rate ‰ 4.85

Industrial labor force Ten thousand persons 1.43

Agricultural labor force Ten thousand persons 0.67

Tertiary industry labor force Ten thousand persons 6.38

Disposable income of urban residents CNY 32204

Net income of rural residents CNY 15486 Data source: Socioeconomic Survey

23 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 3.3 Socio- economic sampling survey of affected households in the project affected area 48. In order to check the impact quantity of the project and the basic information of the affected family and make the relocation and resettlement policy based on the detailed and accurate data, the project implementation agency and experts from Shaanxi Engineering Research Center of River have conducted sampling survey on the social and economic situation of the affected households of the project. The households affected are randomly selected for survey so as to guarantee the objectiveness and effectiveness of the data. 3.3.1 Demographic information 49. 30 households of the affected people are interviewed and surveyed in terms of social and economic impact of the project, including 30 affected households, and the average population of each household surveyed is 5.5. See basic information of the sampling in Table 7. Table 7 Basic information of the sampling survey Affected Sampling Sampling Affected area Community Population households households rate (%) Xinzhaizi Village 30 166 30 100 Total 30 166 30 100 Data source: Socioeconomic Survey. Note, each worker was counted as a household.

50. Basic information for 30 households surveyed is shown below: The survey data shows that among the 166 people of 30 households surveyed, 85 are males and 81 are females, with the gender distribution ratio of 1: 0.95. 34 of them are aged under 18, accounting for 20.46% of the total; 10 are aged over 60, accounting for 6.03% of the total; 122 are young adults, accounting for 73.51% of the total. According to the survey on the age of affected people, most of them are aged at 18 to 60. And they form the main body of the labor force in accordance with the labor department’s definition (60 for male, and 55 for female). Thus, the labor force is totally 122 people, accounting for 73.51% of total sample population in this survey. (See Table 8) Table 8 Age structure of affected people for sample survey Male Female Total Category Number % Number % Number % ≤6 5 3.01% 4 2.41% 9 5.42% 7-18 13 7.83% 12 7.23% 25 15.06% 18-35 29 17.47% 27 16.27% 56 33.73% 36-50 27 16.27% 25 15.06% 52 31.33% 51-60 7 4.22% 7 4.22% 14 8.43% 61-70 3 1.81% 4 2.41% 7 4.22% ≥71 1 0.60% 2 1.20% 3 1.81% Total 85 51.20% 81 48.80% 166 100.00% Data resource: Socioeconomic Survey 24 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Figure 4 Age structure of affected people for sample survey 51. Survey result on Education level for person who are over 14 years old see Table 9, 10 people have received elementary education, accounting for 6.02% of the total population; 119 people have received junior middle school education, accounting for 71.69%; 27 people have graduted as senior high school education and above, accounting for 16.27%; 3 people are illiterates and semi-illiterates, accounting for 1.82% of the total. The population of males who have received senior high school education or above is slightly higher than that that of females, indicating that females have less educational rights than males in the affected area. Table 9 Education level of households surveyed Category Male Female Total Number % Number % Number % Illiterate and semi-illiterate 1 0.60% 2 1.20% 3 1.81% Elementary school 5 3.01% 5 3.01% 10 6.02% Junior middle school 60 36.14% 59 35.54% 119 71.69% Senior high school or technical school 15 9.04% 12 7.23% 27 16.27% Junior college or above 4 2.41% 3 1.81% 7 4.22% Total 85 51.20% 81 48.80% 166 100.00% Data source: Socioeconomic Survey 52. The job distribution of 122 labor forces was also investigated. See Table 10 for the investigation detail. Most residents work in enterprises, accounting for 38.52% of the investigation samples. Those with stable employment take other temporary jobs, accounting for 28.69%. Those engaged in the tertiary industry account for 14.75%, with unemployment rate of 1.64%, and those engaged in agriculture account for 8.20%. Table 10 Table of employment distribution Employment Population Proportion Government organization 0 0 Own business 10 8.20% Enterprise (working for others) 47 38.52% Farming 10 8.20% The tertiary industry (working for others) 18 14.75% Unemployed 2 1.64% Other temporary employment 35 28.69% Total 122 100.00% 25 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Data source: Socioeconomic Survey

3.3.2 Socioeconomic situation of sampling households 53. See Table 11 for income information of sampling households Table 11 Table of income structure of sampling households Gender Income Total Percentage Male (%) Female (%) Wages 81511 64% 72 28 The third industry 17831 14% 15 85 property Income 26746 21% - - Others 1296 1.02% - - Total 127384 100% Data source: Socioeconomic Survey 54. According to the survey, the average annual income of each household among the 30sampling households was CNY 127,384 at the end of 2015, with per capita of CNY 23161 , slightly lower than the average income standard of Xi’an in that year. The income from wage and salary accounts for about 64%. Income from financial management is also one main source of income for the most surveyed people due to easy house rent. Table 12 Table of economic information on income and expenditure Item 30 households Time (year) 2015 Population (person) 166 Annual wage income per household ( CNY ) 81511 Other incomes 45873 Annual gross income per household (CNY ) 127384 Productive expenditure Annual expenditure per household (CNY ) 116640 16200 Living consumption 100440 Per capita housing (m2) 50.7 Value of manufacturing machine (CNY ten thousand ) 5 Value of major articles of daily use (CNY ten thousand ) 15

Table 13 Expenditure pattern of surveyed households Expenditure Total Percentage (%) A-Living 83980.8 72% Food 45489.6 39% Housing 11664 10% Education 17496 15% Medical treatment 9331.2 8% B-Others 32659.2 28% Total 116640 100.00% Data Source: Socioeconomic Survey

55. Income from properties accounts for a proportion of the source of income, because the project is located in city, the government of which is constructing a civil aerospace industrial park, and affected households have lots of opportunities for work. 56. In the socioeconomic survey, the number of durable consumer goods like household electric appliances was also surveyed and analyzed. It can be seen from Table 14 that the ownership rate of television set and mobile phone is the highest at 100%, followed by refrigerator, washing machine, motorcycle (electromobile) ，cable phone, and PC. It an 26 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) also be seen in Table 14 that 20% surveyed households own one car. Table 14 Ownership of household electric appliances and durable consumer goods Item Ownership rate Motorcycle (electromobile) 75% TV set 100% Washing machine 96% Refrigerator 85% PC 65% Car 20% Cable phone 72% Mobile phone 100% Source: Socioeconomic Survey

27 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 4 Participation, Consultation and Resolution of Complaints 4.1 Definition of stakeholder 57. According to ADB’s Safeguard Policy Statement (2009) and regulations of China’s law, public participation and consultation are important procedures. Based on the features of the planned project, stakeholders can be divided into primary and secondary categories. 58. The main stakeholders are the ones who are directly affected by the project or purely benefit from the project, including (1) those who directly suffer from land loss and property loss; (2) the enterprises and workers affected by land acquisition and relocation; (3) the sub-district where the project is implemented; (4) all of the project agencies and companies which directly construct and operate the project, such as the construction contractors; and (5) local government agencies. 59. Indirect stakeholder refers to indirect beneficiaries, such as construction material suppliers, government departments which take part in the project, and others that are interested in and participate in the project. 4.2 Consultation during the preparation stage 4.2.1 Public participation and consultation of stage 2 60. Due to the adjustment of implementation plan of Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base subproject, consultant experts have updated the resettlement plan at the earlier stage and supplemented the adjusted content of the project, and resurveyed and consulted the impact of land acquisition and demolition. The following refers to public participation and consultation information at stage 2 (Table 15, Table 16).

28 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Table 15 Information disclosure process and plan Weiqu Subdistrict Office of Chang’an District in Xi’an and affected families Bus Parking Lot of Xi’an National Disclosure way and Document Civil Aerospace Industrial Base Disclosure place language The Administrative Committee of Xi’an National Civil Aerospace Industrial Base Disclosure schedule Weiqu Subdistrict Office, Xinzhaizi Villagers’ Committee Introduction to the project Meeting publicity and July 2016 Demolition Office of the Administrative Committee of Xi’an engineering access to information National Civil Aerospace Industrial Base

Disclosure and introduction to Weiqu Subdistrict Office, Xinzhaizi Villagers’ Committee Meeting publicity and land acquisition and demolition July 2016 Demolition Office of the Administrative Committee of Xi’an access to information information National Civil Aerospace Industrial Base

Weiqu Subdistrict Office, Xinzhaizi Villagers’ Committee Publicity and access to After approval of ADB (December Resettlement plan Demolition Office of the Administrative Committee of Xi’an information 2016) National Civil Aerospace Industrial Base Release manual, post up Weiqu Subdistrict Office, Xinzhaizi Villagers’ Committee, After approval of ADB (December Resettlement Manual notice, consult materials and Demolition Office of the Administrative Committee of Xi’an 2016) information National Civil Aerospace Industrial Base, website of ADB

29 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Table 16 Public participation process City/county Activity content and time Project name Participants Methods Main conclusion (district) 2016.8.14-2016.8.16 2016.8.17 2016.5.30-2016.9.30 PMO of Xi’an Urban Compensation and Investigation on the Road Network resettlement policies quantity of objects: real Improvement Project, Consultation of resettlement and accurate data Chang’an District plan, the compensation accepted by both People’s Government, standard for ground parties; Bus Parking Lot Demolition Office of the attachments was discussed Compensation for Subproject of Administrative Survey on with the affected households ground attachments and Xi’an National Committee of Xi’an Survey on the affected Interview, social, and the compensation resettlement policy: this Civil Aerospace Chang’an National Civil physical quantity of discussion, economic agreements was signed with is concrete and feasible Industrial Base District of Aerospace Industrial the project,The sampling and them: of which, the according to national of Xi’an Urban Xi’an Base, affected people questionnaire ground attachments resettlement compensation agreements for and local policies, and Road Network (including representative were checked intention ground attachments were affected people were Improvement of 30 households in signed with Fang Kuanmin on satisfied with them; Project with Xinzhaizi Village, June 8, 2016, with Hou Yalan ADB Loans female representative, The compensation on August 15, with Zhang representative of agreement for ground Yangyu on August 25, and affected people, etc.), attachments was signed; with Zhang Yangzheng on relocation group, design project construction September 18 institute supported

30 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 4.2.2 Consultation implementation plan 61. With the progress of engineering preparation and implementation, the project implementing agency and the families in affected area will carry out public participation especially after the confirmation of Bus Parking Lot of Xi’an National Civil Aerospace Industrial Base. It involves the measurement, inventory, and compensation for ground attachments; training of the affected masses, impact of project construction and solution; hearing the compensation standards and methods of the affected masses and their complaints, opinions and expectation for resettlement plan and life recovery. See Table 17 for the public participation plan. Table 17 Public participation plan

Purpose Mode Time Unit Participant Topic Finding out anything omitted to determine the Municipal project final impacts Physical implementation All affected List of occupied land and Field survey December 2016 quantity review agency and people lost properties of affected community leader people due to demolition Preparing the basic compensation contract Understanding the Municipal project Monitoring the December 2016- Random implementation of the RP, Home visit implementing agency affected people December 2017 sampling the livelihood restoration, and community leader etc. of the affected people 4.3 Disclosure 62. The Chinese version of 2012 resettlement plan had been disclosed in communities for the affected people before the end of 2012. And the resettlement plan was also published on the website of ADB. The resettlement information booklet was distributed to the affected households before April 2012. It covers resettlement scope, project schedule, compensation standards for land and other facilities, relocation and economic rehabilitation strategies, complaint mechanism, etc. When Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base in 2015 was confirmed, the contents including basic information of the project, project schedule, compensation standards for demolished houses and other facilities, etc. were publicized for the affected people through meeting, materials and information check, etc. in July 2016. And the updated Resettlement Plan will be disclosed after the review by ADB. 4.4 Grievance redress mechanisms 63. During the formulation and implementation of the RP, public participation has been encouraged, so great controversy may not occur. However, it is inevitable that unforeseen problems shall arise. In order to solve such problems effectively and to ensure successful implementation of project construction and land acquisition, the project sets up an open and effective complaint and appeal system as outlined. The basic contents shall

31 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) be as follows: ò Stage 1: If relocated people have complains about RP, they may first report their complaints to the committee or the enterprise in written or verbally; if the compliant is made verbally, the committee or the enterprise should handle it and write the complaint down. The committee or the enterprises should resolve the complaint within two weeks. ò Stage 2: If relocated people are not satisfied with the result at stage 1, they can appeal to the sub-district committee after receiving the decision. The sub-district committee should resolve the problem within two weeks. ò Stage 3: If relocated people are still not satisfied with the result, they can appeal to district government, and the district government should resolve the problem within 30 days. ò Stage 4: If relocated people are not satisfied with the result of district government, they can appeal to municipal project implementation agency, or take an administrative lawsuit to municipal people’s court within three months in accordance with civil procedural law. 64. The APs can lodge a complaint about any problems concerning relocation and resettlement, including the compensation standard, etc. The above appealing way and the names, places, leaders, and telephone numbers of the handling agencies shall be informed to relocated people through meeting, notice or handbook, so that they know their right to appeal. Meanwhile, media tools can also be adopted to enhance publicity, and all opinions and suggestions on relocation work of all aspects can be arranged into information articles and then all relocation agencies make timely research and treatment. 65. All the above mentioned agencies shall accept the complaints and appeals from the affected persons for free. The relevant cost is part of contingency costs. All the appeal procedures should be in effect throughout the entire project construction process, so that affected persons can solve any relevant problem throughout this time.

32 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Municipal legal Municipal project department implementation

Municipal discipline External monitoring inspection department District people’s unit of relocation government

Municipal department of letters and calls Affected sub-district office

Affected households,

Figure 5 Appeal and complaint procedure 4.5 ADB accountability mechanism (http://www.adb.org/) 66. The purpose of ADB accountability mechanism is to enable people with negative impact from the ADB-aided projects to air their opinions and seek solutions, and report any behavior that they believe violates ADB safeguard policy and procedures. 67. The mechanism has the most important features of two mutually related functions: negotiation and compliance review. The former refers to negotiating with related shareholders about solving the problem. If no satisfying solution can be found, it is possible that the complaint has no qualified condition for negotiation, or the problem solving procedure has entered into a deeper stage, with worries about its compliance. Thus the inspection of compliance is required. ●The purpose of the negotiation stage is to offer assistance for people with negative impact from ADB-aided projects and solve their problems. The process is led by special project coordinator of ADB project. ●The first step of the negotiation stage is to consider whether the complaint is equipped with the negotiation conditions. If the complaint is handled, the key for the next step is to find an agreement solution accepted by related parties – such as complainant, project implementation party, government of developing member country or sponsor of private department, as well as ADB. But the special project coordinator shall not get involved in the internal affairs of ADB developing member. ●The special project coordinator provides an extra problem solution, but he/she cannot substitute the project management function of ADB business department. The special

33 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) project coordinator directly reports to ADB president and offers suggestions on actions that should be taken. The special project coordinator also monitors the implementation of agreement reached through negotiation. ●The key point of compliance inspection is that, the direct and substantial damage of people affected by project is caused by project planning, handling and implementation that violate the ADB business policy and procedures. The execution inspection is completed by an independent inspection group. The first task of compliance inspection is that the inspection group submits a proposal to ADB Board about whether the matters inspected meet the condition of starting the execution inspection. After approval, the inspection group shall make independent survey and make a proposal to ADB Board about how to guarantee that the project is in line with the stipulated procedures, including the correction and change of project scope or project implementation. The inspection group shall assign a secretariat to assist the work and officially name it office of compliance inspection group. The inspection group shall monitor implementation of any remedy measure approved by the Board. 68. Methods of proposing complaint and request: The complainant needs to first apply to the special project coordinator. If the complaint is regarded to be not equipped with the negotiation conditions, or they are not satisfied with the negotiation process, or negotiation reaches a deeper stage and rules violating behaviors exist, they shall propose the request to the compliance inspection group. 69. The complaint/ request must be put forward in written form, and sent to the special project coordinator / secretary of the compliance inspection group in mail/ fax or email form, or delivered to ADB headquarters in person or any ADB representative. The complaint/ request must be in English or any official/ national language of ADB developing member country – if the complainant/ requesting person cannot translate it. If the complainant has the requirement, his/her identity should be kept confidential and ADB handles no anonymous complaint.

34 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 5 Legal Framework and Policies

5.1 Overview of relevant laws, regulations and policies on relocation and resettlement 70. The resettlement policies of this project are based on ADB’s policies and on the laws and regulations of the People’s Republic of China (PRC). Key ADB policy ‹ Safeguard Policy Statement (June 2009), ‹ Public communication policy of ADB ‹ Gender and resettlement checklist PRC’s laws and regulations on land acquisition and relocation 71. (1) The Land Administration Law of the People’s Republic of China (Announced at the Eleventh Session of the Standing Committee of the Tenth National People’s Congress on August 28, 2004; and effective as of then). Main content: Stipulate land ownership, overall land use plan, cultivated land protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and manner of relocation of relocated people. (2) Interim Regulations on Cultivated land Use Tax of the People’s Republic of China (No. 305 Document of the State Council issued on June 30, 2001 and effective on November 1, 2001). Main content: Make regulations on how to demolish on state-owned land in a planned urban area, and how to compensate for and resettle the affected persons. (3) The State Council Decision on Deepening Reform and Strictly Enforcing Land Administration (Guo Fa [2004] No.28). Main content: Clarify compensation contents, methods and standards for land acquisition, require formulating and releasing unified annual output value standards of all municipalities and counties for land acquisition and the comprehensive land price of areas, ensure same land price for land acquisition at the same place, and include full land acquisition expense into estimate cost of the national key construction project. (4) Notice on Printing and Distributing “Guidance Suggestions on Perfecting Land Acquisition, Compensation and Resettlement System” by Ministry of Land Resources of People’s Republic of China (Guo Tu Zi Fa [2004] No. 238, November 3, 2004). Main content: Propose the carrying out Decision on Furthering Reform of Land Management of the State Council and in particular the guidance suggestions on several questions during the process of perfecting land acquisition, compensation and resettlement system, including formulating unified annual output value standard and unifying the determination of times of annual output value.

35 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) (5) Real Property Right Law of the People’s Republic of China. (Order of the People’s Republic of China No. 62, in effect as of October 1, 2007). Main content: To maintain the basic national economic system, maintain the order of the socialist market economy, define the ownership of object, give play to the utility of object, and protect the property rights of the owner and user, it is to formulate the provision on civil relationship according to the constitution because of the ownership and usage of object. (6) Acquisition and Compensation Ordinance of Housing on State-owned Land (No. 590 decree of the State Council passed in the 141st executive meeting of the State Council on January 19, 2011). Main content: The regulation on civil relation is confirmed to standardize the acquisition and compensation of housing on state-owned land, maintain public interest and guarantee the legal right and interest of those involved in the acquisition. Relevant policies of Shaanxi Province and Xi’an City 72. (1) Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People’s Congress on November 30, 1999, and effective on January 1, 2000). Main content: In line with the Land Administration Law of the People’s Republic of China, and the reality in Shaanxi Province, concrete formulations on the land administration in Shaanxi Province are made. (2) Measures on Acquisition and Compensation of Housing on State-owned Land of Xi’an City (passed in the third executive meeting of municipal government on March 13, 2012). Main content: Specify the housing acquisition and compensation activity on state-owned land in Xi’an, maintain public interests and guarantee legal rights and interests of owners of houses that are expropriated. (3) Temporary Provision on Evaluation of Urban Housing Demolition and Relocation of Xi’an (Shi Zheng Fa [2004] No.62). Main content:Notice of Xi’an Municipal People’s Government on Enforcing Procedures Execution of Land Acquisition and House Demolition in Municipal Road (Shi Zheng Fa (2003) No.39). Main content: Propose standard policies of planned fix point, land acquisition compensation standard, appropriation of homestead, land for resettlement of material objects, etc. in road reconstruction, land requisition and demolition. (4) Assessment Methods for Housing Acquisition on State-owned Land in Xi’an (Shi Zheng Fa [2012] No.29). Main content: Clarify the assessment method, standard, procedure and obligations and interests of all parties for housing acquisition on state-owned land in Xi’an. 36 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) (5) Replacement Price Standard of Various Types of Houses in 2009. Main content: Offer replacement price for various types of houses. (6) Notice of Xi’an Municipal People’s Government on Endowment Insurance of New Land-lost Farmers (Shi Zheng Fa [2008] No.84). Main content: Define the coverage of endowment insurance for new land-lost farmers in Xi’an, fund raising mode and standard, number of guaranteed people, calculation method of fees, management of endowment insurance fund for new land-lost farmers, etc. (7) Measures for the Implementation of Employment and Social Security for New Land-lost Farmers in Chang’an District of Xi’an (Chang Zheng Ban Fa [2008] No.171). Main content: stipulate the endowment insurance, medical insurance, employment guidance, skill training, etc. for land-lost farmers in Chang’an District. 5.2 ADB’s Policy on Involuntary Resettlement 73. ADB’s Safeguard Policy Statement (June 2009) provides guiding policies and implementation instructions for resettlement in its loan projects. 74. The key content of ADB SPS on Involuntary Resettlement includes 1. Screen the project early to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of persons affected by the project, including gender analysis, specifically related to resettlement impacts and risks. 2. Carry out meaningful consultations with affected persons, resettlement area, and concerned non-government organizations. Inform all affected persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and indigenous peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of affected persons and help the local people within the resettlement area. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. 3. Improve, or at least restore, the livelihoods of all relocated persons through (i) land-based resettlement strategies when affected people depend on land for livelihood where possible, or cash compensation at replacement value for land or other forms should be adopted when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full 37 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. 4. Provide affected persons with needed support, including the following: (i) if there is relocation, the right to use the resettlement land should be guaranteed, better housing, employment and production opportunities on resettlement sites should be provided, so that relocated persons are integrated economically and socially into the original communities in the resettlement area, and benefit from the local communities; (ii) transitional support and development assistance, such as land development, credit aid, training, or employment opportunities providing; and (iii) infrastructure and community services should be provided as required. 5. Improve the standards of living of the affected poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas, provide them with legal and affordable access to land and resources, and in urban areas, provide them with appropriate income sources and legal and affordable access to adequate housing. 6. Develop procedures in a transparent, consistent, and equitable manner if land is acquired through negotiated settlement, so as to ensure that those people who enter into negotiated settlements shall maintain the same or better income and livelihood status. 7. Ensure that affected persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. 8. Prepare a resettlement plan elaborating on affected persons’ rights, strategies for income and livelihood restoration, institutional arrangements, monitoring and reporting arrangement, budget, and time-bound implementation schedule. 9. Disclose a draft resettlement plan, including presentation of the consultation process in a timely manner, before project approval, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. 10. Conceive and execute involuntary resettlement as part of a development project or planning. Include the full costs of resettlement in the project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as an independent subproject. 11. Pay compensation and provide various rights before the removal of the affected people and economic transformation. Monitor the execution of the relocation plan during the implementation of the project. 12. Monitor and assess resettlement outcomes, survey their impacts on the standards of living of affected persons, and also survey whether the resettlement plan has achieved the 38 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) expected effect by taking the baseline conditions and the monitoring results into account. Disclose monitoring reports. 5.3 Resettlement Principle and Compensation Qualification 5.3.1 Compensation qualification and beneficiaries 75. The deadline of compensation is determined by March 31, 2012, and the same is true for the deadline of compensation qualification definition for the implemented project. The residential building, newly-cultivated land and newly-built houses of the affected persons after the compensation deadline expires and any other new trees and facilities for extra compensation are not involved in the compensation or subsidy. 5.3.2 Use of collective land 76. Collective land is obtained by requisition. As the Notice of Xi’an Municipal People’s Government on Improving the Formalities for Land Acquisition and Demolition of Municipal Road Construction (Shi Zheng Fa (2003) No.39) was issued 8 years ago, the compensation standard and policy content have not been suitable for the current social and economic level and compensation requirements. Hence, In December 2012, the land acquisition of the project refers to the provisions issued in March 2012,the project mainly refers to the Evaluation Measures of Xi’an City for Housing Acquisition on State-owned Land (Shi Zheng Fa [2012] No.29) for compensation policies of land acquisition and demolition, and confirms the land compensation standard based on the compensation standard for use right transfer of class-III state-owned land. And the compensation

standard for farmland is CNY 68,000 /mu. The compensation standard for collective land is higher than that of CNY 60,000 per mu in Resettlement Plan in 2010. The Administrative Committee of Xi’an National Civil Aerospace Industrial Base pays all fees of endowment and medical insurances for new land-lost farmers based on the Notice on Endowment Insurance of New Land-lost Farmers (Shi Zheng Fa [2008] No.84) and Measures for the Implementation of Employment and Social Security for New Land-lost Farmers in Chang’an District of Xi’an (Chang Zheng Ban Fa [2008] No.171). The Administrative Committee of Xi’an National Civil Aerospace Industrial Base pays all fees of endowment and medical insurances for new land-lost farmers.(See Chapter 11 due diligence for details) 5.3.3 Compensation standard for the ancillary facilities and land taxes/fees

77. The compensation fees for affected ancillary facilities shall be paid in accordance with their replacement price after assessment by legal assessment agencies. Compensation standard for attachments is the same as that in Resettlement Plan in 2010.The

39 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) compensation standard7 is shown in Table 18:

78. Before the measurement and inventory of ground attachments of the project, the affected households determine not to raise pigs in the steel sheds and pigpens to be demolished after selling all pigs they have raised, so as to support the project implementation. Currently, the pigpens are unused. Based on the investigation on resettlement willingness, the two households select currency compensation. And they will be given compensation based on the evaluated price.

Table 18 Compensation standard table for auxiliary facilities and land taxes/fees Compensation Compensation Type Unit standard (CNY Type Unit standard (CNY /unit) /unit) Compensation for Land reclamation newly increased ㎡ 28 ㎡ 7 fees construction land Tax on farmland Tax on farmland ㎡ 40 ㎡ 20 (farmland) (other farmland) Enclosing wall M 100 Ditch M 100 Young tree tree 50 Water pipe M 50 Pumping well set 100000 Power pole set 330 Color steel shed ㎡ 200 Pigpen ㎡ 365 79. Compensation for various special facilities including water conservancy facility, communication facility, electric power facility, etc. will be paid in accordance with the actual cost or replacement value assessed by professional assessment agencies. 5.4 Entitlement Matrix

80. Entitlement matrix is set based on the relevant policies in this chapter. See details in Table 19.

Table 19 Entitlement matrix

Type of Level of Entitled Compensation policies and Rights losses impact persons standards Collective Obtain the compensation fee of Price of collective land is CNY Collective land XInzhaizi land paying-usage; collective 68,000 /mu; (Compensation for land acquisition Village land: CNY 68,000 /mu (land villagers) of 62.3 mu price )8 Ground Including Entitled Receive the compensation at

7 On December 23, 2014, Ministry of Finance issued Notice on Cancellation, Cessation and Exemption from Administration Business Charges, and made a clear notice of cancelling the administration fee for land acquisition from January 1, 2015. 8 Land acquisition for the project in December 2012 mainly referred to the “Assessment for Houses to be Acquired on State-owned Land in Xi’an” (Shi Zheng Fa [2012] No.29) issued in March 2012. And land compensation standard is decided by reference the compensation standards for paid transfer of three kinds of state-owned land, namely, the compensation standard for cultivated land is CNY 68,000 per mu.

40 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Type of Level of Entitled Compensation policies and Rights losses impact persons standards attachment trees, person replacement cost. and public enclosure, facilities etc.

41 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

6 Relocation and Resettlement Measures

6.1 Objectives

81. The objectives of resettlement have been determined as follows, based on the actual standard of living of the affected persons in 2015, the 13th Five-Year Plan of national economic and social development of Xi’an City and long-term goals in 2020. 1The annual per capita net income of the displaced households is restored to the pre-displacement level; 2The living environment of the displaced households is improved; 3The utilities, infrastructure, cultural, educational and sanitary facilities, and natural environment available to the displaced persons are equivalent or better than pre-displacement conditions. 6.2 Housing replacement

82. Before the measurement and inventory of ground attachments of the project, the affected households determine not to raise pigs in the steel sheds and pigpens to be demolished after selling all pigs they have raised, so as to support the project implementation. Currently, the pigpens are unused. Based on the investigation on resettlement willingness, the 2 households select currency compensation. And they will be given compensation based on the evaluated price. 6.3 Economic rehabilitation program

83. The project permanently expropriated the collective land of Xiaozhaizi Village of 62.3 mu. The land acquisition project totally affected 166 people of 30 households. Affected households plant landscape trees and fruit trees universally, and the average profit in first three years was about CNY 2,266 /mu; According to survey, all affected households request currency compensation without land adjustment. According to compensation policies, land compensation fee is CNY 68,000 /mu, which is 30 times as much as annual income loss. The attachments are evaluated and compensated according to actual land type, and all land compensation fees are paid for affected households directly. 84. When asked about their opinions, the 30 affected households have no objection to the compensation standard, abandon the hearing, and agree to the land acquisition. The peasant households and property owners of ground attachments have confirmed the

42 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

ownership, category, area of the land to be acquired as well as the ownership, category, quantity, etc. of ground attachments. 85. For the affected households, Weiqu Subdistrict Office will register the land-lost farmers within the scope of new land acquired, and after full investigation, provide training of various skills such as horticulture, call center operator, commodity marketing, housekeeping, public security, etc., putting forth efforts to improve the employment and entrepreneurial ability of unemployed farmers. After the training, examination and evaluation shall be conducted. The qualified farmers will obtain the grading certificate from Labor Department, and the subdistrict employment service center will establish talents database to recommend employment to the society, thus making the affected villagers qualified for the work in surrounding enterprises and improving their economic income. Meanwhile, the Administrative Committee of Xi’an National Civil Aerospace Industrial Base will arrange work first for the affected people who are willing to engage in municipal cleaning with monthly salary of CNY 2,000 in Chang’an District. The affected people will be given priority on equal conditions for the recruitment of surrounding enterprises such as CASC No.6 Institute, Aohua Investment Company, aviation enterprises, etc. The main opportunities that Surrounding industries may provide include: commodity marketing, public security, municipal cleaning, environment sanitation, flower gardening, call center service, etc. These affected persons have a relatively stable income from wages and salaries in the surrounding industries,The average salary of 2500-2500 yuan and obtain a higher annual income than before. There are surpluses in addition to making up all of their losses. Meanwhile, the government also encourages, supports and assists the affected persons, who are willing to start an entrepreneurship, and provides & creates more job opportunities and choices for these affected persons. The affected households who have obtained the land compensation make use of the capital as investment costs of self entrepreneurship, and manage the business of daily products marketing, catering service, and supermarket. Hence, they have fixed incomes; their living standards are improved obviously and economic incomes are higher than that before. 6.4 Rehabilitation plan for enterprises and institutions

86. The enterprises and institutions are unaffected by the project. It is no necessary to put forward special rehabilitation plan for enterprises and institutions.

43 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

6.5 Economic rehabilitation program for vulnerable group

87. There are no vulnerable groups identified currently. So the special rehabilitation program for vulnerable group is not needed. 6.6 Special facilities

88. The special facilities affected by the project are mainly electricity lines, telecommunication lines, etc. At the early stage of feasibility study, we have made detailed survey on the possible impact on the life of affected people caused by the demolition of special facilities, and seek for the opinions and suggestions of the street cadres, relevant departments and affected households, which shall be fully considered in the resettlement plan. For example, the reconstruction of electricity lines and telecommunication lines shall be based on the preliminary design. When the electricity lines and telecommunication lines go through the project construction area, the alignment poles shall be heightened; when it has impact on the direction of electricity lines and telecommunication lines, the lines shall be rerouted and reconstructed in the affected area. The relevant functional departments shall be responsible for planning and rebuilding the electric power and telecommunication facilities.

44 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

7 Budget for Relocation and Resettlement Fees

7.1 Land acquisition and demotion fees

89. Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base involves state-owned land and collective land. The details of compensation for demolition are shown in Table 20:

Table 20 Details of relocation and resettlement fees of Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base No. Item Unit Compensation Quantity Cost( CNY Rate standard ten (/unit) thousand ) (%) 1 Permanent acquisition of 423.64 32.60 collective land Farmland mu 68000 62.3 423.64 Compensation mu 1000 0 fee for young 0.00 crops Compensation mu 2000 0 0.00 fee for seedlings 2 Ground 435.42 33.50 attachments Pumping well set 100,000 11 110.00 Young tree tree 35 92243 322.85 Power pole set 330 4 0.13 Ditch M 100 58 0.58 Enclosing wall M 100 140 1.40 Water pipe M 50 91 0.46 Color steel shed ㎡ 200 2496 49.92 Pigpen ㎡ 365 442.86 16.16 1~2 subtotal (direct cost) 859.06 3 other costs 128.86 9.92 Relocation plan Percentage of 0.50% 4.30 preparation fee direct cost Implementation Percentage of 3% 25.77 management fee direct cost Skill training fee Percentage of 1% 8.59 direct cost External Percentage of 0.50% 4.30 monitoring and direct cost

45 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

No. Item Unit Compensation Quantity Cost( CNY Rate standard ten (/unit) thousand ) (%) evaluation cost Unforeseeable Percentage of 10% 85.91 expenses direct cost Land 311.66 23.98 acquisition fee Land ㎡ compensation fees for new 28 41554.1 116.35 construction land Reclaimed land ㎡ 7 41554.1 29.09 fees Tax contribution ㎡ of occupied 40 41554.1 166.22 farmland (farmland) Tax contribution ㎡ of occupied 20 0 0.00 farmland (other farmland) Total 1299.57 100.00

7.2 Investment plan in years 90. The source of the project relocation is all from the local supporting fund. Before the project construction or during implementation, in order not to affect the production and living conditions of the affected households, the investment plan shall be carried out by stages. The investment plan for relocated people can be seen in Table 21 in detail. Table 21 Investment plan for resettlement Amount Year 2016 Total paid9 Investment ( CNY ten thousand ) 424 875.57 1299.57 Proportion (%) 33% 67% 100% 7.3 Fund appropriation flow and procedures 91. Based on compensation policies and the compensation standard set out in the RP, Xi’an Project Management Office (PMO) and the project implementing agency shall directly

9Administrative Committee of Xian National Civil Aerospace Industrial Base paid land acquisition and demolition fees for affected households. See detials in Duediligence Report..

46 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

pay the compensation funds to district government, APs and the affected enterprises and institutions during the implementation of the project.Fund flow is shown as follow:

Figure 6 Fund flow diagram

47 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

8 Institutional Arrangements and Duties

8.1 Relevant institutions respect to resettlement

92. During the implementation of the project, the following institutions shall be in charge of

the planning, managing, implementing and monitoring of the relocation and resettlement

of Xi’an Urban Road Network Improvement Project:

‹ Leading Group of Xi’an Urban Road Network Improvement Project; ‹ Xi’an Municipal Urban & Rural Construction Commission (EA); ‹ Xi’an Infrastructure Construction Investment Group Co. Ltd (IA); ‹ Xi’an Municipal Land and Resources Bureau; ‹ Xi’an Municipal Administrative Office of Urban Housing Demolition and Resettlement ;

‹ Administrative Committee of Xian National Civil Aerospace Industrial Base ‹ Weiqu Subdistrict Office of Chang’an District ‹ Xinzhaizi Village (affected village) ‹ Design Institute 93. The Leading Group shall be in charge of leading, organizing and coordinating land acquisition, demolition, relocation and resettlement, reviewing the RP, and implementing internal supervision and examination. 94. Xi’an Project Management Office has responsibility for guiding the formulation of the relocation policy, formulation of the RP, and implementation of land acquisition and demolition, as follows: ‹ To entrust design institution to measure the scope affected by the project ‹ To organize the socioeconomic survey ‹ To organize and coordinate the formulation of the RP ‹ To implement the policies of the RP ‹ To decide on and coordinate the implementation of the RP according to the timetable of project construction ‹ To pay the fund for the resettlement and supervise the use of funds ‹ To guide, coordinate and supervise the activities and progress of resettlement ‹ To organize and implement internal supervision, decide on independent external

48 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

monitoring supervision, and to coordinate external monitoring activities ‹ To check the monitoring report ‹ To coordinate and deal with contradictions and problems during implementation ‹ To coordinate and deal with entanglement and appeal during demolition and relocation ‹ To regularly provide reports to ADB on progress of land acquisition and demolition, the use of funds and the quality of the implementation 95. Xi’an Infrastructure Construction Investment Group Co. Ltd., the project implementing agency, has responsibility for the socioeconomic survey and survey on physical quantity, assists in formulating the RP, and contacts with Xi’an Land and Resources Bureau, Town Government and affected Village Committees to carry out various specific works of relocation and resettlement, as follows: ‹ To organize socioeconomic survey ‹ To register and check out property for land acquisition and demolition ‹ To organize public participation activities ‹ To coordinate and organize the RP; to organize detailed formulation work for the RP ‹ To apply for land use planning permit and land use construction permit from Xi’an Land and Resources Bureau ‹ To implement the regulations relating to housing demolition and relocation ‹ To implement the policies and regulations relating to construction land management ‹ To formulate the plan and compensation standard of land acquisition for the approval of relevant departments and submit to relevant departments for approval ‹ To handle the approval formality of land use permission ‹ To apply for land use planning permission and land use construction permit ‹ To implement the RP ‹ To sign contract on resettlement of permanent land acquisition compensation with collective economic organizations whose land is acquired together with relevant town governments and villages ‹ To sign contract on contemporary use of land with relevant agencies ‹ To sign contract of land acquisition and relocation with relocated households and enterprises along with the implementing agency ‹ To check out progress of relocation and resettlement

49 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

‹ To manage the information on land acquisition, demolition and relocation ‹ To train the staff ‹ To coordinate and deal with the contradictions and problems during implementation ‹ To deal with the entanglement and appeal ‹ To report to the Xi’an Project Office on the progress of land acquisition and relocation 96. Xi’an Municipal Land and Resources Bureau shall be in charge of handling, examining and approving the land acquisition permission, and conducting coordination, management, supervision, arbitration, as well as monitoring, arbitration, coordination and management of housing demolition, relocation and resettlement. 97. Xi’an Administrative Office of Urban Housing Demolition shall be in charge of handling, examining and approving urban housing demolition application and providing licenses, and conducting coordination, management, supervision, arbitration and housing demolition, as well as supervision, arbitration, coordination and management of housing demolition and resettlement. 98. Affected sub-districts offices shall be in charge of coordinating surveys, signing the contract of land acquisition and relocation with Land and Resources Bureau, and coordinating land acquisition, housing demolition and relocation. The responsibilities shall also include: ‹ To take part in the project survey and to formulate the RP ‹ To organize public participation and propaganda policies on relocation and resettlement ‹ To implement, check out, monitor and record all the relocation and resettlement activities in their own towns ‹ To handle housing relocation and construction procedures ‹ To pay and manage the land compensation fund ‹ To monitor the use of land acquisition, housing and auxiliary facilities demolition, reconstruction and removal of housing ‹ To report progress of land acquisition, demolition and relocation to Xi’an Land and Resources Bureau and Relocation and Resettlement Office ‹ To coordinate and deal with the contradictions and problems during working. 99. Administrative Committee of Xian National Civil Aerospace Industrial Base shall be in

50 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

charge of organizing consultation and information disclosure, monitoring the reconstruction and resettlement of the houses. 100. Affected Villagers’ Committees/ Community The affected villagers’ / (community) committees shall be in charge of providing land contract materials, assisting the survey, adjusting contracted land and residential land after land requisition and demolition, and providing job for the vulnerable group. The affected communities are in charge of information dissemination, assisting with measuring and evaluating, signing demolition agreement and providing name list of vulnerable group. In addition the village committee/ community shall also handle the following things: ò Take part in the social economic survey and project impact survey; ò Organize the public to participate in and propagandize land demolition policies; ò Choose the resettlement sites and allocate homestead; ò Conduct adjustment and allocation of the land and organize the resettlement activities, such as production and exploitation, etc.; ò Take charge of fund management and appropriation; ò Report advices and suggestions of the relocated persons to superior department; ò Report the implementation scheduling of relocation and resettlement; ò Help the needy households affected by land acquisition; ò Coordinate the superior department with relevant work about land acquisition and demolition; 101. The Designing Institute has responsibility for project design and determining details of land acquisition and demolition scope. 8.2 Institution Structure

51 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Figure 7 Resettlement Institution Structure of the Project 8.3 Institution qualifications and personnel allocation 102. The staffs concerned with relocation project are the representatives from the relevant functional departments of the Xi’an Municipal Government. The staff members have a wealth of work experience and they have all taken part in many municipal projects involved in land acquisition, demolition and relocation. Because they are from different departments of the government at all levels, they can play an active role in implementation and coordination in the work of relocation. Other institutions participated in the implementation are comprised of staff with rich experience in urban construction management. The leading group consists of 28 directors or vice directors of relevant bureaus, and the average person-in-charge of each bureau are 2. 103. Under the guidance of the Leading Group and the PMOs, The following institutions are allocated with detailed land acquisition and demolition tasks

52 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Table 22 Contact information of various organizations Name Position Contact number Deputy Director of Planning and Construction Lin Yang Bureau of Adminstrative Committee of Xian 13891979916 National Civil Aerospace Industrial Base Demolition Department of Adminstrative Director Wang Committee of Xian National Civil Aerospace 13299056163 Industrial Base Demolition Department of Adminstrative Liu Gong Committee of Xian National Civil Aerospace 15829888987 Industrial Base Planning and Construction Bureau of Chen Kexue Adminstrative Committee of Xian National Civil 13080920446 Aerospace Industrial Base

8.4 Measures for relocation institutional capacity building

104. In order to ensure that the relocation plan implements smoothly, the staff who deal with relocation shall be trained. The PMO of Xi’an shall be in charge of organizing and formulating the training plan. 105. A system of training and human resources development for the city, district, sub-district, and village shall be set up. The relocation project management and process management training included in the training plan belongs to the same item. The training shall adopt a number of techniques, such as lectures by experts, skills training, learning from other projects, and field training etc. The training contents shall be as follows: —Relocation principle and policy —Training for planning and management of the relocation project —Implementation planning design for relocation —Implementation scheduling management of relocation —Financial management of relocation —Quality control of relocation project —Management of the information system —Monitoring and evaluation of resettlement —Management of resettlement project.

53 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

9 Relocation Implementation Schedule 106. Table 23 is the planning schedule for implementation of the project. Table 23 Planning schedule of land acquisition, demolition and relocation 2016 2017 2018 content 9 12 3 6 9 12 3 6 9 12 I Formulate Relocation and Resettlement Plan Approval of land use Identification of project scope line Survey for social economy and object influence Identification of implementation date Identification of compensation standards Preparation of resettlement plan Identification of the vulnerable group of the project Determine the compensation and resettlement policies for attachments II Land Acquisition and Resettlement Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial

Base Provide the affected people with information manual Mobilization meetings and policies publicity Detailed measurement survey Negotiation and agreement signing Land acquisition, houses demolition, payment for compensation fee Complaints of each stage III Livelihood and Income Restoration The affected residents livelihood recovery Hire the affected people to participate in project construction Implement the income increase scheme New skill training

54 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 10 Monitoring and Evaluation 107. In order to guarantee the relocation and resettlement plan proceeds smoothly and realize the targeted goals, the project shall regularly monitor and evaluate the implementation of land acquisition and relocation and resettlement in accordance with the requirements of Asian Development Bank (ADB). Two kinds of monitoring shall be put in place: Internal monitoring and external monitoring of relocation and resettlement institution. Since the external monitoring system has a critical role, and for the monitoring of implementation of both village reconstruction project and resettlement plan, the project implementation institution has hired consultative institutions with rich experience and favorable track records on resettlement monitoring to take charge of external monitoring work of land requisition, demolition and relocation and resettlement activities. 10.1 Internal monitoring 10.1.1 Purpose 108. The purpose of internal monitoring is to make sure that all-level relocation institutions can operate well during the project implementation, internally monitor the preparation stage and all remaining stages of implementation, and be aware of the progress of relocation. This shall enable the work of land acquisition and relocation to advance in a timely manner according to the Relocation Plan and ensure the project construction proceeds smoothly. 10.1.2 The contents of the internal monitoring 109. There are two aspects to the internal monitoring:(i) the monitoring on administrative management departments in the relevant areas (including the project implementing institution and community committees); and (ii) the monitoring of the resettlement for the affected individuals in accordance with the RP terms. The monitoring shall confirm whether: • Resident resettlement is carried out according to the RP terms; • The affected individuals get enough compensation according to the formulations; • More job opportunities are provided to the local residents taking advantage of the project implementation; • The affected individuals are satisfied with the new residential land; • The affected individuals are satisfied with the compensation project; • The living conditions of the affected individuals are safe and proper;

55 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) • The affected individuals get the redistributed land according to the relevant regulations; • The affected individuals are satisfied with the quantity and quality of redistributed land, living conditions and production conditions; • The affected individuals are satisfied with their income change and rehabilitation situation after land acquisition; • The affected individuals are satisfied with the project staff’s working methods, attitude and effectiveness; • The information, notification, consultation and coordination are given to the affected individuals in accordance with the procedures outlined in the RP; • Resettlement payments/expenditures are recorded in written form, especially the description of the cause of overspending and resource of supplement; • The affected individuals are permitted to appeal in accordance with the process outlined in the RP; • The affected people are satisfied with legal sanction of possible malfeasance, venal and selfish behavior. • The implementation activities are finished on schedule at least one month before the project starts. 10.1.3 Working procedure of internal monitoring institutions 110. The monitoring institutions shall combine responsibility to the project with responsibility to the affected individuals. They should summarize experiences and lessons, and maintain a work record. The monitoring institutions shall have a meeting at regular or irregular intervals and report relevant circumstances. Each quarter, the monitoring institution should give a written report to the leading group office about the monitoring work and disposed results of monitoring events. Every three months, a written progress report of all of the project monitoring shall be submitted to ADB. 111. The project implementation agency shall collect monitoring data from community committee and monthly sampling survey. These data include both microcosmic data (each affected household/ individual) and macroscopic data (sub-district office or district). The collected data of each affected household/ individual shall be stored in the computer floppy and be revised after every monitoring survey. 112. The internal monitoring report shall be discussed in every regular meeting of

56 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) the resettlement office for land acquisition and demolition, and the subsequent activity shall be started. 10.1.4 Internal monitoring report 113. Xi’an Project Management Office shall submit an internal monitoring report to ADB every six months. Internal monitoring aims at collecting relocation information and reporting the resettlement progress to ADB, so as to examine whether the implementation of relocation complies with the resettlement plan and ADB’s social security policies, and then improve it in later work. The work content of internal supervision is composed of two parts: (1) supervision for administrative department (including the project implementation unitagency and village committee in project) in relevant regions; (2) supervision on resettlement for the affected persons based on the resettlement plan.The report shall tabulate statistical figures of the past six months and reflect the progress by making contrast between actual and planned land acquisition, resettlement and compensation. Table 24 and Table 25 are examples. Table 24 Progress report for land acquisition, demolition and resettlement

District ______Subdistrict(town)______Community(village) Cutoff date MM DD YY Filling date MM DD YY Item Unit Planning Actual Total Propotion amount completed amount Payment for land CNY compensation 10,000 Personnel training Person Employment Person arrangement Land adjustment Mu Reporter: Signature(leader) Seal

Table 25 Progress of fund use

District ______Subdistrict (town)______Community(village) Cutoff date MM DD YY Filling date MM DD YY Unit/ Required Received Adjusting Affected Details Compensatio quantit investment( compensation( compensatio enterprises 10 n proportion y ￥) ￥) n Community 1

10 “Details” will be filled in training and employment of labor and compensation for vulnerable, etc. 57 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Community 2 Collective Resettleme nt households Enterprises Reporter: Signature(leader) Seal

10.2 External monitoring 114. According to ADB’s requirement, Xi’an Project Management Office has contracted a qualified, independent and experienced institution as the independent monitoring institution for resettlement. The project implementation unitagency employed an independent agency for external monitoring and evaluation in the end of May 2013 and replaced the agency with Shaanxi Engineering Research Center of River on July 20, 2015, ensuring that various milestone activities during land acquisition and demolition of the project can be supervised and evaluated efficiently. 115. The external monitoring institution shall track and evaluate the relocation implementation activity, monitor the progress, quality of relocation and the use of fund, and give comments and suggestions. It shall also monitor the living and production conditions of the resettled residents, and submit monitoring reports to the Xi’an Project Management Office and the ADB. The outline of the external monitoring and evaluating see detailed Appendixes. 10.2.1Contents and methods of external monitoring 116. (1) Baseline survey: The external monitoring institution shall carry out a baseline survey of the affected enterprises and affected individuals to obtain the base information of living and production level (living, production and income level) of them. A living and production level survey shall be held every half a year in order to track the living standard changing information. Methods of tracking study on typical samples (sample size: 20% of the affected households, 50% of the affected villages, and 50% of the affected enterprises and affected shops, sample households shall be selected randomly), random interview and on-site inspection shall be conducted to collect interrelated data. The evaluation shall be based on the analysis of the information. 117. (2) Regular monitoring and evaluating: The external monitoring institution shall carry out tracking and monitoring for resettlement every six months during the implementation of the project. This shall include field observation, sample

58 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) household track and survey, and casual interviews to monitor the following: ‹ Payment and amount of compensation; ‹ Preparation of the relocated site; ‹ Reconstruction of the housing; ‹ Moving of the affected individuals; ‹ Training; ‹ Support of the vulnerable groups; ‹ Rebuilding of the infrastructure and special facilities; ‹ Production arrangement and restoration; ‹ Compensation of property loss; ‹ Compensation of lost working time ‹ Transition subsidy ‹ Time table of activities mentioned above (applicable for any time) ‹ Institutional framework of resettlement net; ‹ Use of collective land compensation and the income of resettlement households ‹ Employment and income growth status 118. (3) Public consultation and negotiation: The external monitoring institution shall attend the public consultation and negotiation meeting held during the implementation of resettlement project, through which, the external monitoring institution shall evaluate the effect of public participation. 119. (4) Complaints: The external monitoring institution shall regularly visit the affected villages and find out the results from the PMO, town, villagers’ committee and the project implementation agency deal with complaints. In addition, the external monitoring agency shall interview the resettlement individuals who have complained, and put forward suggestions and measures regarding problem resolution to help the relocation become more effective. 10.2.2 External monitoring report 120. The external monitoring agency shall submit a monitoring and evaluation report to Xi’an Project Management Office and ADB every six months. The schedule report is outlined as Table 26.

Table 26 Schedule of relocation monitoring and evaluating

Report Date 1 Socioeconomic baseline survey December 2016 2 Phase I monitoring report June 2017 3 Phase II monitoring report December 2017 4 Final report June 2018

59 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

10.3 Evaluation after relocation 121. After the completion of the project, external monitoring agency evaluates the relocation of the project based on previous monitoring and evaluation by the theory and methods of post-project. It shall evaluate the successful experience and lessons learnt during the land acquisition, housing demolition of enterprises for the use of later relocation activities. The external monitoring agency shall formulate an evaluating outline, set up an evaluating index system, carry out a socioeconomic survey, and compose Post-implementation Report of Xi’an Urban Road Network Improvement Project for Xi’an Project Office and ADB.

60 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 11 Due Diligence Report 11.1Project overview

122. In order to better solve urban traffic problem, relieve traffic jam, improve road safety, enhance city’s carrier function and guarantee rapid, sound and orderly development of the city, Xi’an Municipal People’s Government intends to initiate the Xi’an Road Network Improvement and Public Facilities Construction Project (this Project) with part of the loan from ADB. The Project includes five outputs, namely, (i) road bridge improvement; (ii) pedestrian safety; (iii) comprehensive traffic facilities;(iv) intelligent transport system (ITS) and (v) environment protection enhancement. Among the five outputs, the road bridge improvement and the comprehensive traffic facilities need LA&R, so this report is about these two outputs. 123. Output of comprehensive traffic facilities includes the construction of: (i) four comprehensive traffic hub facilities, (ii) five three-dimensional parking lots, (iii) five oil and gas stations. The comprehensive traffic hub facilities mainly include four subprojects of Xi’an North Railway Station, Xi’an National Civil Aerospace Industrial Base, Xi’an Yuhuazhai and Xi’an International Trade & Logistics Park. The project will provide convenient connection between metro, bus, taxi, car, motorcycle and bicycle. Upon its completion, it will not only greatly improve the transport capacity, but also further enhance the connection of the four directions of Xi’an, thus bringing great traveling convenience to the citizens and outsiders. The engineering aims at gradually improving urban comprehensive traffic system of Xi’an, relieving traffic pressure, improving the traffic capacity of road network, and strengthening the link between development area and urban area, so as to achieve safe, smooth, convenient and orderly traffic. The implementation phase for the output of comprehensive traffic facilities is five years, from 2013 to 2017. 124. Considering the comprehensive traffic hub (bus parking lot) project of Xi’an National Civil Aerospace Industrial Base is to invite bids for its construction, due diligence on the land acquisition and demolition shall be reported and submitted to ADB according to ADB’s Safeguard Policy Statement in 2009. Therefore, the due diligence report will describe and evaluate the land acquisition and demolition of the comprehensive traffic hub (bus parking lot) of Xi’an National Civil Aerospace Industrial Base.

61 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) 11.2 Impacts of land acquisition and demolition

125. On December 12, 2012, Land Acquisition and Resettlement Office of Xi'an National Civil Aerospace Industrial Base signed Land Acquisition Agreement with Xinzhaizi Villager’s Committee, Weiqu Subdistrict, Chang’an District. Acquisition area is approximate 800mu with Xiaojing Village boundary to east, Xinhe and Jiuzhaizi Village boundary to south, Sifujing Village boundary to west and Xibei Village boundary to north. Actual measured area is 838.5120mu. and the land of 62.3mu that the project occupated within the scope has been acquired.

Figure 8 refers to the location profile of project area 126. Land compensation standard of the project complies with Notice of Xi’an Municipal People’s Government on Enforcing Procedures Execution of Land Acquisition and House Demolition in Municipal Road (Shi Zheng Fa (2003) No.39):” as for land acquisition of municipal road, unified land compensation standard is set, which should not be higher than CNY 60,000 /mu in general.” On the basis of compensation standard of the local government, the standard for land acquisition compensation fee (including land compensation fee and resettlement compensation fee) is unified as CNY 68,000 /mu. The project has acquired the cultivated land of 62.3mu. As Notice of Xi’an Municipal People’s Government on Enforcing Procedures Execution of Land Acquisition and House Demolition in Municipal Road (Shi Zheng Fa (2003) No.39) has been issued for 8 years before the implementation of the project, the compensation standard and policy are not suitable for current social and economic development and compensation requirement. Hence, the compensation policy for land acquisition and demolition of the project mainly refers to Assessment Methods for Housing Acquisition on State-owned Land in Xi’an (Shi Zheng Fa [2012] No.29), which determines that the compensation standard for paid

62 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) transfer of right of use of Class III state-owned land, namely, compensation standard for cultivated land is CNY 68,000 /mu. 11.3 Current progress

127. In December 2012, ground attachments within the project was measured and inventoried including farmland, nursery stock, etc. In July 2016, ground attachments within the project ware remeasured and reinventoried after primary design of the project. 128. Land for the planned construction project is acquired due to the infrastructure development of Xi’an National Civil Aerospace Industrial Base. In 2012, the Demolition and Resettlement Office of Xi’an National Civil Aerospace Industrial Base, after negotiation with Xinzhaizi Villagers’ Committee under Weiqu Subdistrict Office of Chang’an District according to relevant laws and regulations, acquired the collective land of about 800mu (the actual measurement report shall prevail) in Xinzhaizi Village under Weiqu Subdistrict Office, with actually measured area of 818.512mu (including the project land). The compensation for the land was CNY 57,018,816 only in total. Both parties agreed that after signature of the land acquisition agreement, the Demolition and Resettlement Office of Xi’an National Civil Aerospace Industrial Base shall pay CNY 30 million only to Xinzhaizi Villagers’ Committee under Weiqu Subdistrict Office of Chang’an District first, and make a payment of the remaining fees after the measurement result was obtained. On December 12, 2012, both parties signed the land acquisition agreement and the land acquisition has been completed. However, the inventory and compensation for ground attachments (building, nursery stock, and infrastructure) were not implemented until this year since the planned construction projects on the land had not been constructed and the demolition agency did not enclose the land. 129. Currently, executing agencies of project are preparing land components application and approval for State-owned Land Use Right Certificate to further accelerate work schedule, conduct other related procedures and finish all the work for land acquisition as soon as possible. On July 11, 2016, National Civil Aerospace Base Branch Office of Xi’an Municipal Bureau of Land and Resources submitted the application for Implementation Program of 2016 15th-batch Urban Construction Land of Xi’an approved by the State Council to Xi’an Municipal Bureau of Land and Resources. The program involves farmland conversion, land acquisition and farmland replenishment matters, which includes Xinzhaizi Village, Weiqu Subdistrict, and Chang’an District in the project. On August 31, 2016, Xi’an Municipal Bureau of Land and Resources submitted the application to Department of Land and Resources of Shaanxi Province, in which, it

63 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) indicates that the downtown area affirmed in Overall Plan of Land Utilization of Xi’an and the rural collective farmland & construction land of Dongsifu Village, Huangzipo Village, Shuangzhu Village, Sifujing Village, Xinzhaizi Village of Weiqu Street, Chang’an District within Xi’an urban planning area are nationalized for unban construction with approval of Xi’an Municipal People's Government. Such area is planned to be constructed for industrial warehousing, residence, and public management & service, and subsequent procedures are in processing. 130. Land Acquisition and Demolition Resettlement Office of XCAIB is responsible for the implementation of the land acquisition and demolition of this project. Before implementation, full notification and negotiation have been made for project areas, affected villages and peasant households; meanwhile, the project has higher compensation standards. Since the project has been implemented and not even one petition and complaint arising from land acquisition and demolition has occurred, it indicates that the public is satisfied with this project. 131. (i) the land acquisition in 2012 complies with the land acquisition policy for collective land of the government; (ii) there are no unsettled cases or complaints during process of land acquisition; (iii) that the acquisition was not done in anticipation of ADB financing for the subproject.

64 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Figure 9 Land Acquisition Agreement

Land Acquisition Agreement

Land acquirer (Party A): Land Acquisition and Resettlement Office of Xi'an National

Civil Aerospace Industrial Base

Land acquiree (Party B): Xinzhaizi Villager’s Committee, Weiqu Subdistrict, Chang’an

District

Due to infrastructure development of Xi'an National Civil Aerospace Industrial Base, in

accordance with regulation of Land Administration Law of the People's Republic of

China, Uniform Land Acquisition Measures of Shaanxi Province for Construction Project

and other related laws, with the principle of equality and mutual benefit, Party A and

65 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Party B reach the following agreement on relevant issues after negotiation:

I. Land acquisition area: according to the overall plan requirement for construction

development of Party A, the land acquired is located in Xinzhaizi Village, Weiqu

Subdistrict. In detail: Xiaojing Village boundary to east, Xinhe and Jiuzhaizi Village

boundary to south, Sifujing Village boundary to west and Xibei Village boundary to

north.

II. Land acquisition area: Land acquisition area is approximate 800mu (subject to actual

measure report). Actual measured area is 838.5120mu.

III. Related cost standard:

Land acquisition compensation (land compensation and resettlement compensation) is

determined to be CNY sixty eight thousand only (¥ 68,000) per mu, and in total is CNY

fifty seven million eighteen thousand eight hundred and sixteen only (¥ 57,018,816).

IV. Land measurement: since signing date of the agreement, Party A shall take responsibility of surveying and demarcation for land to be acquired by contacting a qualified surveying company. Party B shall appoint someone for ownership inventory and supporting work of surveying.

V. Party A agrees to pay party B land management fees as 7% of total land costs, amounting to CNY three million nine hundred ninety one thousand and three hundred seventeen point one two only

(￥3,991,317.12 )

VI. Payment mode:

After signing the Land Acquisition Agreement, Party A shall pay Party B the land cost of Say CNY Thirty million only in advance. The remaining costs shall be delivered after measuring results for a lump-sum.

VII. Rights and obligations of both parties:

Party A acquires the lands of Party B legally, shall pay relevant funds timely in strict accordance with provisions of the agreement, and supervise and inspect Party B in managing, using and paying the funds.

66 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Both parties shall negotiate to measure lands, check attachments, and enclose and build enclosure; coordinate to solve various disputes caused by land acquisition among villages, teams and individuals; strictly manage the land compensation funds to avoid defalcation of any units and individuals, and manage affairs and money for all villagers of the economic organization. Party B shall deliver the lands as requirements of Party A on time.

VIII. After the land acquisition is completed, social security issues, involving villagers of Party B, shall be handled according to relevant policies of the State and Aerospace Base.

IX. For the projects, such as earthwork, flooring loading and transportation, etc. that the village is able to undertake in party B’s area within the land acquisition scope, Party B shall be given the priority under equal market conditions.

X. For matters not covered in the agreement, a supplementary agreement shall be signed for further explanation, and have the equal legal effects with the agreement.

XI. The agreement will come into effect after the signature and seal of both parties with the obedience of both parties.

XII. The agreement is in sextuplicate with each party holding three copies.

Party A: Party B: (seal)

Seal: Xi’an Municipal Urban-villages Reconstruction Office of Xi’an National Civil Aerospace Industrial

Base

Legal representative: Dai Xiangdong Legal representative: Zhang Yushi

67 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Seal: Land Acquisition and Resettlement Office of Xi'an National Civil Aerospace Industrial Base

Seal: Xinzhaizi Villager’s Committee, Weiqu Subdistrict, Chang’an District December 12, 2012 Agreement by Fang Jinxue, December 12, 2012 Xu Sanzheng Fang Fu Zhang Xiaogen Zhang Shanxuan Zhang Yangyu

Supplementary Agreement on Land Acquisition

Party A: Land Acquisition and Resettlement Office of Xi'an National Civil Aerospace Industrial Base

Party B: Xinzhaizi Villagers’ Committee, Weiqu Subdistrict, Chang’an District

Due to needs of Aerospace Base construction, Party A imposed the lands of Party B. Regarding the matters not covered in Land Acquisition Agreement, both parties reached the following supplementary agreement after negotiation.

I. According to State rated standards, and in combination with market price, Party B shall bear the projects of clearance, enclosure, flooring loading and transportation, and earthwork within the land acquisition scope of Party B. Party B shall complete the projects as required in light of contracted time limits with high quality and quantity.

II. Considering the poor economic foundation of Party B, Party A decided to pay Party B CNY one million and five hundred thousand only (￥150,000 ) for a lump-sum after study for the needs of two commissions site, cultural entertainment places, drainage system within the village and other new rural

68 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) construction issues, as well as sharp contradictories existing among parts of villagers who have no lands.

III. Payment mode: After signing the agreement, 50% of land costs shall be delivered in advance; the remaining funds shall be paid for a lump-sum after enclosure construction and the acceptance of Party A.

Considering practical difficulties of the village, it is decided that payment shall be done for a lump-sum after negotiation.

IV. The agreement is in octuplicate with both parties holding two copies.

Note: In case of major changes of national land policies, the national policies shall prevail.

Party A (seal): Party B (seal): Legal Representative: Dai Xiangdong Legal Representative: Zhang Yuping, Zhang Sh anxuan, Zhang Baochun, Fang Jinxue, Zha ng Xiaogen, Xu Sanzheng, Fang Fu, Zhan g Yangyu

SealLand Acquisition and Resettlement Office of Xi'an National Civil Aerospace Industrial Base Seal: Xinzhaizi Villager’s Committee, Weiqu Subdistrict, Chang’an District December 12, 2012

69 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Figure 10 Compensation and payment voucher for ground attachments

Copies of receipts attached May 31, 2016 Order No. Fu Yuning Project name: Xinzhaizi Payee: Ai Lizhen

70 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated) Amount (in words) RMB five hundred and sixty-six thousand five hundred and sixty-five only Yuan ￥566,565.00 Responsible person Application description Project Manager Compensation for General Manager attachments Chairman

Accountant: Cashier: Payee: Ai Lizhen

Approval Sheet for Payment copies of receipts attached June 8, 2016 Order No. Fu Yuning July 26, 2016 Project name: Xinzhaizi Payee: Fang Kuanmin Amount (in words) RMB two hundred and twenty-two thousand only Yuan

￥222,000.00 Project Manager Compensation for ground General Manager attachments Chairman

Accountant: Cashier: Payee: Fang Kuanmin

Approval Sheet for Payment copies of receipts attached May 30, 2016 Order No. Fu Yuning May 2016 Project name: Xinzhaizi Payee: Zhang Xueli Amount (in words) RMB four hundred and forty thousand only Yuan ￥440,000.00 Project Manager Compensation for ground General Manager attachments Paid Chairman Accountant: Cashier: Payee: Zhang Xueli

71 Bus Parking Lot Subproject of Xi’an National Civil Aerospace Industrial Base Resettlement Plan (updated)

Figure 11 site picture

72