Resettlement Planning Document

Resettlement Plan Document Stage: Final Project Number: 39038 September 2011

PRC: Road Network Development Project

Prepared by Winlot Consulting Ltd. for the Heilongjiang Provincial Communications Department and the Asian Development Bank.

The 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. ADB Financed

Heilongjiang Road Network Development Project

Resettlement Completion Report

Winlot Consulting Ltd.

September 26, 2011

- 1 -

1 About the project

1.1 Project overview

1. The Linkou-Baiquan Class 2 Highway (hereinafter referred to as “LBSR”) project is one of the arterial highway networks of the state under the "Development Plan of

Rejuvenating Road & Waterway Transport Development in Northeast Old Industrial Base”, i.e.: Linkou-Fangzheng-Tonghe--Qingan-Suileng--Baiquan. This project is a most important measure to open the "East-west corridor" in the central part of

Heilongjiang Province and build up the road network of “connecting the south and the north vertically, the west and the east horizontally, with appropriate scale and appropriate layout”; moreover the project is a key project to open the “East-west corridor” in the central part of Heilongjiang, eliminate the un-networked road between adjacent counties (cities), and coordinate the regional economic development. This project is a need to expedite the construction of commodity grain base of Heilongjiang

Province, rejuvenate coal city and forest area, and implement “General Plan to

Re-energize Heilongjiang Province – The old industrial base of ”.

2. The road is originated from City, stretching from the east to the west generally; the road shall get across the east part of , Gucheng Town, Jiantang countryside and cross over River in Shuangwu Village, connect with

Tongsan Highway in Daluomi Town, cross over the from the area between Fangzheng and , get acoss Fengshan Village, Ailin Tree

Farm, the west of Taoshan Town, the west of Teili City, Shuangfeng Town, Anqing

County, Shangji Town, and bypass the south of , and then cross over

Suibei Railway to go to Hailun City and Sandao Town, and then end in Baiquan

County.

3. For construction scale of the project. The arterial line’s construction length of the project is 427.995km, with 22 branch lines of 170.383km totally. The project and the

- 2 - 22 branch lines to be constructed newly shall improve the traffic conditions of all

countryside and towns in the coverage of the project zone. to a great extent, and

improve economy development and people’s living level in the project area.

4. Integral road sections of the project (see Table 1 & 2 as follows).

Table 1 Mileage of Every Arterial Road Section of Linquan Highway No. Road section Length (km) Class From Linkou to 1 K63+152.240～k77+231.169 14.079 Class 2 Gucheng From Jiantang to K116+000～k204+587.074 88.254 Short line: 332.757m Daluomi From Fangzheng 2 K245+490～k268+897 21.701 Class 1 & 2 to Tonghe K245+490～k260+620 13.424 Class 1 K260+620～k268+899 8.277 Class 2 From Tonghe to 3 K268+900～k408+2674.9 155.429 Long line: 15.928km Tieli Long line: 274.173 From Anqing to 4 K433+600～k503+893.1 70.271 Class 2 Suiling From Hailun to K543+267.89 5 78.261 Class 2 Baiquan ～k621+528.724 Subtotal 8.277 Class 1 419.718 Class 2 Total 427.995

- 3 -

Figure 1 Linkou-Baiquan Highway Alignment

- 4 -

Table 2 Length of Every Branch Section of Linquan Highway and Road Section Class Local county No. Name of highway branch Highway class Construction length (km) (municipality) 1 Linkou County Gucheng branch Class 4 1.386 2 Linkou County Santongdao branch Class 4 27.565 3 Linkou County Lianhua branch Class 4 34.356 4 Linkou County Diaoling branch Class 4 5.978 Branch in memorial site in which 5 Linkou County eight heroines who drowned Class 4 0.558 themselves in a river 6 Tonghe County Malang River branch Class 4 0.861 7 Tonghe County Taiping Tree Fram branch Class 4 12.092 8 Tieli County Taoshan branch Class 4 2.401 9 Qing’an County Qing’an branch Class 2 2.49 10 Qing’an County Qinlao branch Class 4 15.086 11 Suiling County Shangji branch Class 4 1.399 12 Suiling County Nil River branch Class 4 4.642 13 Suiling County Changshan Countryside branch Class 4 10.62 14 Suiling County Houtou branch Class 4 5.156 15 Suiling County Suiling branch Class 2 2.582 16 Hailun County Hailun branch Class 2 2.136 17 Hailun County Qianjin Countryside branch Class 4 4.445 18 Hailun County Gonghe Countryside branch Class 4 11.445 19 Hailun County Yonghe Countryside branch Class 4 1.5 20 Santongdao branch Class 4 2.088 21 Baiquan County Xinsheng Country branch Class 4 19.597 22 Baiquan County Xinguo Countryside branch Class 4 2 Total 170.383

1.2 Area scope to be affected by the project

5. The arterial highway and its branches affected totally 8 countries, 36 towns &

countryside, 130 villages, 6 forestry bureaus and 24 tree farms (the arterial highway and some of its branches get repetition somewhere, so the repeated part is not calculated herein). Among which, the arterial highway affected totally 8 countries, 31 towns & countryside, 111 administrative villages, 140 village groups, 6 forestry bureaus, 20 tree farms, 11 enterprises and public

- 5 - institutions; the branches affect 17 towns & countryside, 37 administrative villages, 37 village groups, 2 forestry bureaus and 12 tree farms.

6. The land to be acquired for the arterial highway permanently affected 5532 households totaling 22331 people, the branch affected 131 households totaling 527 people; the house to be demolished involved in 286 households totaling 802 people and 11 enterprises totaling 147 people.

1.3 Statistical data for land acquisition, demolishment and relocation

7. The LBSR project had been opened to traffic wholly on schedule on September 30,

2009, and the resettlement work for people involved in the arterial highway and its branches were done successfully in May 2009 and April 2009 respectively; where the land to be acquired totally was 19,838.7 mu(1,322.6 hectares),

including the one of 1,189 hectares for the arterial highway and the one of 133 hectares for its branches; totally 286 households were relocated under the compensation of RMB45,354,482. The land and house compensation base was higher by 18% whilst negotiating with the people affected; the total expense for

land acquisition and resettlement was RMB306,042,258.

2. Relocation & resettlement institute

8. The LBSR project was established purposely the Relocation & Resettlement Office

to be specially responsible for land acquisition and resettlement, including the work to

determine land acquisition scope, quantity, land acquisition and demolishment

compensation standard, handle and solve problems involved in the demolishment

process.

- 6 - 9. All countries and municipalities designated the Land and Resources Burea at country or municipality level to be responsible for the local land acquisition and demolishment work, providing land acquisition and demolishment data and resettlement policy, supervising allocation and payment of land acquisition and demolishment compensation capital, coordinating and solving disputes related to traffic, water resources, power and telecommunication in the project implementation course.

10. The Forestry Bureau at county or municipality level was responsible for tree farm acquisition and relocation work in the local area, providing demolishment and relocation technical data and resettlement policy, supervising tree farm acquisition and compensation capital use.

11. The countryside or township government assisted Land and Resources Bureau at country or municipality level, Forestry Bureau at country or municipality level and the project implementation institute in land acquisition coordination work in respective local area.

12. Tree farm was responsible for the management work for the tree farm acquisition.

13. Village committees were responsible for verifying and reporting land acquisition and demolishment data and information related to land and property owner and user, population, labor force, and participating in land acquisition and demolishment investigation and verification work, selecting relocation site, revealing complaints of people affected, designating agricultural recovery plan and organizing and re-building houses.

14. The LBSR construction headquarters, whilst determining the land acquisition and demolishment scope, organized the team comprising of officials of Land and

Resources Bureau at country or municipality level, officials of Forestry Bureau at country or municipality level, officials of countryside and township in charge of land

- 7 - acquisition and demolishment, director of village committees, villager representatives to jointly survey the border, and the representatives from 5 parties signed to conform the border scope and land quantity. The construction headquarters, Land and

Resources Bureau at country level and Forestry Bureau at country level were responsible for publishing the land acquisition and demolishment compensation standard to the society and households affected, the village committee of every village affected by the land acquisition and demolishment work was responsible for reporting the data related to farmers and population affected to countryside or township government; and the countryside or township government was responsible for reporting to every local Land and Resources Bureau and Forestry Bureau; and then the Land and Resources Bureau and Forestry Bureau summarized all data and information and then reported to the LBSR command headquarter to form an integral information flow.

15. The LBSR command headquarter allocated the land acquisition and demolishment compensation capital to Land and Resources Bureau and Forestry

Bureau at every country level according to the border scope upon all related personnel signed and confirmed the land acquisition and demolishment quantity.; the

Land and Resources Bureau and Forestry Bureau at every country level paid then the compensation capital to the bank account opened by the household affected directly to form an integral capital flow; so no compensation capital interception was reported or happened.

16. The LBSR project had been established a perfect land acquisition and demolishment organization; all related departments co-worked each other tp complete the land acquisition, demolishment and relocation work smoothly; the compensation capital was paid to people and household affected; the work to acquire land, demolish and relocate people along the whole highway was completed smoothly, which revealed the management efficiency of the land acquisition and resettlement organization of the LBSR project.

- 8 -

- 9 - Figure 3 Organization Structure of Resettlement

3. Study Scope and Method of Resettlement Completion Report

3.1 Study scope

17. The monitoring scope this time covers the land acquisition, demolishment and resettlement of the area along the LBSR project (including its arterial highway and its branches), including eight cities (namely Linkou County, , Tonghe

- 10 - County, Tieli City, Suiling County, Hailun County, Qing’an County and Baiquan

County) and five forestry bureaus.

18. The compilation team implemented the random survey for the land acquisition and resettlement activities in the areas along the arterial highway and its branch of

Heilongjiang LBSR project in the period from July 8 to Aug. 20 of 2011, and thence finished the resettlement completion report on September 30, 2011.

19. The deadline of the land acquisition & its assessment data covered by the completion report was May 2009, and the deadline of the information related to the land acquisition and demolishment compensation capital was December 31, 2010.

3.2 Report compilation method

20. The main methods adopted to compile the resettlement completion report was: field visits and interviews, interviews of responsible persons of relevant departments and data collection. The following ones were significantly investigated, i.e.: (1)

Economy development of the area along the highway, aiming to know about the economy development index after the highway is constructed; (2) influence caused by the land acquisition. demolishment and relocation; (3) follow up the living level change of local households affected by land acquisition, demolishment and relocation.

21. The summarized data covered by the completion report mainly come from statistics collected by the project construction headquarters and the contractors and the progress reports on land acquisition and resettlement from the various counties. In addition, a survey was conducted on the typical households affected by land acquisition and resettlement to collect more detailed data.

- 11 - 3.3 Laws and Policies Followed by the Resettlement Completion Report

22. Laws and policies followed by the resettlement completion report are as follows: a) Land Administration Law of PRC (implemented from Jan. 1, 1999 and revised in March, 2004); b) Forest Administration Law of PRC (implemented from Apr. 29, 1998); c) Land Administration Regulation of Heilongjiang Province (implemented from Jan.1, 2000); d) Notification for Charging for the Four Items of Forest Land Occupation issued by Forest Administration Department, Price Administration Department and Financial Department of Heilongjiang Province (HLCLZ[1992]303, implemented from Dec. 2, 1999); e) Regulation of Heilongjiang Province on the Charge and Use of the Farmland Restoration Fees (HTZF[2001]111); f) Basic Farmland Protection Regulation of Heilongjiang Province (revised) (issued on Jun. 30, 1995); g) Notification on the Charge Standard for the Farmland Restoration Fees issued by Land Administration Bureau, Financial Department, Price Administration Department and Agricultural Commission of Heilongjiang Province (issued on Aug. 12, 1991); h) Notification on the Charge of Land Administration Fees issued by Land Administration Bureau, Financial Department, Price Administration Department of Heilongjiang Province (issued on Jun. 20, 1995); i) Involuntary Resettlement Policy of ADB (issued in Nov. 1995) and Resettlement Handbook; j) The Standard for the Output Value of the Farmland of Heilongjiang Province (HTZF[2000]36); (August 16, 2000) k) Resettlement Plan of Road Network Development Project of Heilongjiang Province (Communication Department of Heilongjiang Province, Feb. 24, 2006);

4. Implementation Progress of Land Acquisition and Resettlement for Arterial highway and its branches

4.1 Overall Progress of Land Acquisition and Resettlement

23. The land acquisition for the arterial highway and its branches of Heilongjiang

Linquan Highway Project had been completed (See Table 1) and 100% of the houses, power supply and telecommunication facilities and other attachments included in the plan had been removed and relocated. 100% of the land acquisition and resettlement

- 12 - activities uncovered in the plan had also been completed.

4.2 Progress of Land Acquisition

24. The arterial highway of the LBSR Project and its branches had actually acquired

19,236.5 mu of land in total (Note: there is a difference of 602.28 mu comparing with the one of 19,838.7 mu recorded in the ADB menu dated Nov. 15, 2010; which is rightly because of the reason that the construction headquarters repeated to calculate the tree farm of the branch); among which the land acquired by the arterial highway was 17835.23 mu, accounting for 105% of the approved land occupation of 16,975.76 mu, including 8,647.12 mu of arable land, accounting for 87.7% of 9859.04 mu arable land approved; 1,298.04 mu of land of other uses, accounting for 38% of 3422.81 mu land of other uses approved, and 9,188.11 mu of wood land (including branch of

602.28 mu), accounting for 161% of 5715.62mu of wood land approved. .

25. The reason to cause the arable land acquired is less than the planed area for resettlement is because the elevation of the subgrade of some road sections is lowered than the preliminary design, where the subgrade slope lessens the land occupation scope by 10% around; the another reason is some wood areas covered by

RP (which were found to be the wood area whilst acquiring land actually); so the farm land to be acquired is reduced.

26. The forest land acquisition is 61% excess than the 2006 RP. The reason is because the methodology of measurement is different. The designing institute calculated the size based on the area of contour; but, the forestry administrative department measured according to the surface of the terrain. Some actual measured land became forest land is another reason that forest land excess the 2006 RP.

27. The planned land acquisition for the its branches of the Project amounts to

2,003.53 mu in total, including 148.10 mu of arable land, 602.28 mu of wood land and

1,253.16 of existing road and land of other uses. Compensation for wood land

- 13 - acquired for construction of its branches has been paid in full amount. As agreed between the local governments and Heilongjiang Province Transportation Department, the local governments are fully responsible for land acquisition and removal of ground attachments for the its branches and the compensation standards for land acquisition and resettlement for the its branches are determined with reference to those of the arterial highway. So far, compensation for land acquisition in the its branches has been paid in full amount.

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

4.3 Progress of Resettlement for Arterial Highway

29. The Project actually involves the removal of 286 houses, accounting for 129% of the planned quantity of 222 houses. All the houses have been demolished and 100% of the power supply and telecommunication facilities have been removed.

Compensation for relocated households has been fully paid and the unit rate of the compensation standard for the relocated houses is 16% higher than the estimated unit rate (since the statistical data in the previous report changes, the budgetary proportion changes accordingly; the percentage of 18% confirmed in the memo dated

November 15, 2010 should be changed into 16%). The affected households are properly resettled through three channels: 1) urban residents were partly resettled in the economically affordable housing arranged by the governments; 2) the relocated households built their own houses with the compensation fund; 3) the relocated households bought houses on market with the compensation fund. Thanks to these efforts of resettlement, the living standard of the relocated households was improved to different extents.

- 14 - 4.4 Use of Compensation Fund for Land Acquisition and Resettlement for

Arterial Highway

30. The total budget approved for land acquisition and resettlement under the Project is RMB 263,710,000. RMB 306,040,000 had been actually paid, overrunning the budget by RMB 42,330,000. The budget is overrun because 1）the compensation standard estimated in the budget is too low; 2) The amount of resettlement designed in the construction drawings is greater than that in the preliminary design; 3) there are some missing items in the construction drawing design in relation to the preliminary design; 4) design variation results in increase of land acquisition and resettlement.

See Table 3 for progress of resettlement for arterial highway and Table 4 and 5 for the actual payment and the estimated expenditure.

- 15 - Table 3 Progress of Resettlement for Aretiral Highway of LBSR project House Demolition Arterial highway Land Acquisition Forest Land Acquisition (per household) (mu) (including link road) (mu) County/City Actual/ Actual/ Actual/ RP Completed RP RP Actual Planned Relocated Actual Planned Actual Planned Planned (%) Planned Planned (%) (%) (%)

Baiquan 2 2 100 2 100 640.34 697.78 109 374.31 558.03 149

Hailun City 1 1 100 1 100 193.30 174.83 90 822.78 898.68 109

Suiling County 17 23 135 23 100 975.57 1,023.58 105 79.98 245.33 307

Qing’an County 15 11 73 11 100 694.34 832.82 120 95.41 255.49 268

Tieli City 13 13 100 13 100 1,514.54 1,208.19 80 150.00 150.00 100

Tonghe County 87 134 154 134 100 1,325.67 1,354.13 102 173.36 255.84 148

Fangzheng County 1 1 100 1 100 1,142.55 1,102.94 97 17.91 29.05 162

Linkou County 27 27 100 27 100 2,019.91 2,048.61 101 100.45 60.96 61 Linkou Forest Administration Bureau 0 0 0 0 0 377.11 0.00 0 251.68 922.27 366 Fangzheng Forest Administration Bureau 23 26 113 26 100 697.37 0.00 0 1,116.66 1,767.47 158

Xinglong Forest Administration Bureau 0 0 0 0 0 278.34 204.24 73 1,220.80 1,754.13 144

Langxiang Forest Administration Bureau 0 0 0 0 0 0.00 0.00 0 108.38 178.36 165

Taoshan Forest Administration Bureau 36 48 133 48 100 0.00 0.00 0 1,203.90 2,112.50 175

Total 222 286 128.8 286 100 9,859.04 8,647.12 87.7 5,715.62 9,188.11 161 Note: The planned number of houses for demolition is those shown in the construction drawings while the planned land and forest land acquisition are those shown in the survey result of Land Planning Institute. Source: Statistics of Linquan Highway CONSTRUCTION HEADQUARTERS.

16 Table 4 Summary sheet of Land Acquisition and Resettlement Compensation of whole LBSR project

Unit: RMB

Item Farming Forest Borrowing Other ground Relocated Relocated Houses Total Land Land Pit attachments electricity facilities telecommunication facilities

Suiling 14,134,703 1,517,091 4,966,281 1,359,359 6,568,464 1,942,748 2,496,000 32,984,646

Tieli 8,710,570 4,278,227 2,421,000 1,070,065 4,690,651 9,542,559 1,500,000 32,213,072

Linkou 22,693,704 1,945,491 396,114 871,000 1,308,000 1,164,000 28,378,309

Tonghe 13,344,983 2,851,483 3,493,600 1,268,500 27,815,682 17,500,000 2,365,000 68,639,248

Fangzheng 15,834,106 3,039,853 1,296,148 4,734,004 1,178,000 430,000 26,512,111

Qing’an 15,294,871 1,388,567 3,609,510 2,238,187 597,681 2,543,277 890,000 26,562,093

Baiquan 10,097,114 2,265,210 3,270,091 77,000 240,000 1,797,554 17,746,969

Hailun 1,701,886 4,906,935 2,864,749 222,100 157,395 295,947 10,149,012

State Gov. 29,968,577 29,968,577

HPDOT 14,266,936 15,418,145 2,662,500 100,000 32,447,581

Railway Department 440,640 440,640

Total 116,519,513 67,579,579 21,921,379 9,216,825 45,354,482 34,511,979 10,938,501 306,042,258

17

Table 5 Comparison of Estimated Budget and Actual Expenditure of Land Acquisition and Resettlement (By April 30, 2010)

Up to December 31, 2010 Unit: RMB

Approved Cost Actual Cost Comparison(+-) Increase No. Item (RMB) (RMB) (RMB) ％ A Land 153,309,658 116,519,513 -36,790,145 -24% B Forest land 45,762,684 67,579,579 21,816,895 48% C Borrowing Pit 4,122,757 21,921,379 17,798,622 432% House and other ground D 19,784,007 54,571,307 34,787,300 176% attachments 1 Houses allocated 18,772,033 45,354,482 26,582,449 142% 2 Other ground attachments 1,011,974 9,216,825 8,204,851 811% E Power and Communications 40,733,011 45,450,480 4,717,469 12% 1 Electricity Power 24,234,556 34,511,979 10,277,423 42% 2 Communication facilities 16,498,455 10,938,501 -5,559,954 -34% Total 263,712,117 306,042,258 42,330,141 16%

Source: Statistics of Linquan Highway CONSTRUCTION HEADQUARTERS.

18 4.5 Resettlement of Enterprises in Tonghe County

31. Tonghe Jufeng Rice Mill, Tonghe Sanitary Ware Factory and Tonghe Agricultural

Machinery Company affected by Songhua River Large Bridge constructed in Tonghe

County had been resettled and compensated correspondingly. Tonghe Agricultural

Machinery Company only involved removal of its fencing walls and no impacts were produced on its operations. To the contrary, thanks to the removal of the fencing walls and construction of the Songhua River Large Bridge, the road in front of the Company and the surrounding environment are both improved. See Figure 1 and Figure 2 for detail. The other two enterprises had gone out of business for years (more than 15 years) and are in fact two abandoned rural workshops. During the interview, the bosses of the two workshops expressed that they did not plan to build a new factory with the compensation fund. The bosses received a good compensation and their quality of life is significantly improved. Therefore, the resettlement of the two enterprises did not produce any adverse impacts.

March 18, 2009 April 18, 2010

Fig. 4 Tonghe Agricultural Machinery Co., Ltd

4.6 Progress of Land Acquisition and Demolishment for Branches

32. The work to acquire land for 22 branch highways was thoroughly completed on

April 3, 2009, and the construction of all branch highways was completed and opened

19 to traffic in September 2009. The Fig. 5 & 6 as follows shows the connection picture of

Sandaotong branch and Linquan Highway, Linquan Highway and the memorial site in which eight heroines who drowned themselves in a river.

Fig. 6 Connection picture between Linquan Fig. 5 Sandaotong branch Highway and the memorial site in which eight heroines who drowned themselves in a river

33. See the following picture for the road section between Malanghe branch, Tonghe

County and Linquan Highway (Fig. 7).

Fig. 7 Intersection between Malanghe branch and Linquan Highway

20 4.7 Evaluation on Overall Progress of Land Acquisition and Resettlement for

Arterial highway and its branches

34. The land acquisition and resettlement for the arterial highway and its branches of the Project had been completed by May and April, 2009 respectively, and the compensation has been paid 100%. The smooth completion of the land acquisition and resettlement guarantees on-time completion of Linquan Highway Project.

35. According to the survey, before and by May 31, 2009, compensation for temporary land acquisition for Linquan Highway Project had been fully paid and the contractors restored the original use of the temporarily occupied land as required after the arterial highway was completed.

36. Before and by May 31, 2009, acquisition of and disbursement of compensation for forest land occupied by the main line and its branches of Linquan Highway Project had also been fully carried out.

37. Storms in May and June, 2008 resulted in serious erosion to the subgrade of

Linquan Highway in Linkou, Tonghe, Baiquan and Qing’an. As a result, some farmlands along the highway were filled up with silts and farming output was affected.

The affected farmers requested for compensation. Although most of the affected farmlands are within the right-of-way of the Project, CONSTRUCTION

HEADQUARTERS granted compensation to the affected farmers in 2009 based on a realistic measurement of their losses they suffered from the subgrade scours.

However, the snow storm in late 2009 and early 2010 resulted in serious waterlogging in some farm fields. In order to avoid similar problems, the construction headquarters and the contractors, in May 2009, dredged the side ditches and reinforced the protection of the side slopes to prevent road subgrade and side slope erosion from affecting farmlands at both sides and filled up the depressions to prevent repetitive flooding of the farmland.

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

5 Socioeconomic Development of Villages Affected by Arterial highway Project

5.1 Sanjiazi Village of Diaoling Township, Linkou County

39. Sanjiazi Village of Diaoling Township, Linkou County: The village has 447 households in total including 65 poor households with a population of approximately

139 people. In 2010, the net income per capita of the village was RMB8,970. Among the household income, 61% is agricultural and 39% is non-agricultural income. The total area of farmland that the whole village has is 8,100 mu, including 4,100 mu of arable land and 4,000 mu of reclaimed land. Farmland assigned to per household on average is 24 mu. 35% of the farmland grows soy beans, 60% corn and 5% rice.

Villagers were arranged to exchange their farmland acquired by the Project with the reserve land of the village with better soil quality. Therefore, no impacts were produced on the living quality of the affected villagers.

40. Household survey to Liu Chun, an affected villager of Sanjiazi Village of Diaoling

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

In 2009, the family’s yearly income was 20% higher than that of 2008. In 2010, Liu’s household economy income rose by 18% on the base of 2009, and thence Liu Chun’s family is very satisfied. Land acquisition did not produce negative impacts on the living standard of Liuchun’s family.

22 41. Sanjiazi Village of Diaoling Township, Linkou County: This village has 5 households affected by resettlement. Wang Jiaquan, Wang Jiajun, Du Changlin, Xu

Xiang and Zhang Dianchen, the five affected villagers, had all built up their new houses in late 2008 and are very well resettled. Their living conditions have been improved.

42. Status of New House Construction by Wang Jiaquan, an affected villager in

Sanjiazi Village of Diaoling Town, Linkou County: Wang Jiaquan, an affected villager in Sanjiazi Village, received a compensation of RMB 75,000 for his houses relocated under the Project with a total floorage of 80m2. His new house was already completed in October 2008 and cost approximately RMB 140,000, RMB 70,000 of which was his savings. The new house of approximately 120 m2 is an energy-saving residence built with heat insulation materials. Living in the new house, this three-member family can cut their expenses on coal for winter heating and their living conditions are improved.

Wang Jiaquan expressed his thanks for the opportunity provided by the construction of Linquan Highway for improving their living conditions. Without this opportunity, the family would not have been able to afford to rebuild their old houses at a cost of RMB

140,000. See Figure 8 for pictures of Wang Jiaquan’s new house.

23

Figure 8: Exterior and Interior Pictures of the New House of Wang Jiaquan

5.2 Typical Survey of Affected Households of Dongxing Street of Tonghe

Township, Tonghe County

43. Survey Results of Affected Households in Tonghe County: Thanks to the construction of Songhua River Bridge in Tonghe County, 71 households on Dongxing

Street of Tonghe Township, Tonghe County were affected. Most of these residents are laid-off employees of Tonghe Brewery. In order to properly address the resettlement of these affected households, the People’s Government of Tonghe County constructed 7 low-cost apartment buildings (named Minle Homes as shown in Figure 9) in the northern part of the county town and sold these apartments at cost price to the affected households. Approximately 70 affected households were resettled in this new residential community.

44. The affected households did not experience any decreases of their living standard.

Instead, thanks to the efforts of both the community and themselves, their income has been rising year by year. Most of the APs were laid-off workers of a local brewery that had gone bankruptcy. They used to live in simple and small houses and could only afford a simple life with their low income and did not have the ability to buy the low-cost apartments constructed by the county government. They said that, thanks to the construction of Linquan Highway, their old houses were acquired and Linquan

Highway provided an opportunity for them to improve their living conditions.

24

Figure 9: Minle Homes in Tonghe County

45. Xia Aibin, an affected resident, used to live with his family (Xia and his wife and one of their parents and their child studying in a local high school) in a 30m2 house.

The living conditions were very poor. Since Tonghe Brewery that Xia used to work for went bankrupt and, as an urban household covered by the minimum living guarantee scheme, Xia’s family receives monthly allowances from government and was unable to afford a commercial apartment to improve their living conditions. After resettlement, he and his family moved to a 60m2 apartment in Apartment No. 501, Unit 2, Building 5 in Minle Homes （See Figure 11）and their living conditions are greatly improved. In

2009, Xia’s household income increased by approximately 15% than the last year. and in 2010 Xia’s household economy income rose by 17% than that of 2009; which offered a sound guarantee to both their livelihood and their child’s schooling.

25

Figure 11: New Apartment of Xia Aibin, an affected resident (Photo taken on

March 30, 2009)

46. Cui Lianjing, a retired employee of Tonghe Brewery, aged 67 years old, lived originally in the relative yard of the brewery, the area of the house that Cui lived was

40m2, so Cui was compensated RMB30,000 for the relocation expense. After moving to the economically affordable housing developed by Tonghe Government, the living area was changed into 45m2, and Cui spent RMB36,000 in buying the flat. Except the resettlement compensation, Cui paid extra RMB6,000 from his savings. Now Cui’s living condition and environment is improved hugely.

Fig. 10 Short house to be lived by Cui Lianjing, a retired employee of Tonghe Brewery

26

Fig. 11 Capacious flat of Cui Lianjing, a retired employee of Tonghe Brewery (after resettlement)

47. Huoju Village of Tonghe Town, Tonghe County: In 2009, Huoju Village achieved a net income per capita of approximately RMB 5,963, rose by 21% than 2008; where the per capita net income 2010 was RMB7,007, rose by 17.5% than 2009; with an arable land per capita of 4.5 mu, every year, rice sales per capita gets to 8,000 kg and even up to 10,000 kg to the maximum. Thanks to the continuous increase of rice yield in recent years, the villagers’ agricultural income has also been on the rise.

27 Comprehensive and direct subsidy provided by the national government is RMB76 per mu for rice and RMB56 per mu for dry land. Most of the fields in the village are rice fields. Agricultural income accounts for 95% of the farmers’ income, with the remaining 5% coming from aquiculture and seasonal jobs (including providing manual labor for this High Project) from which the farmers get paid RMB100 a day and usually

RMB120 to 130 a day. 10% of the labor force of the village is working elsewhere year round. Poor households account for 25% of the total number of households in the village and there are 176 villagers covered by the minimum living guarantee scheme and receiving RMB35 to 50 per month of governmental subsidy. 100% of the villagers are covered by the medicare insurance program at a rate of RMB10 per person / year for 2008 and RMB20 for 2009~2010. Construction of the highway under the Project has brought valuable chances for traffic improvement and economic growth of Huoju

Village. In 2009, the net income per capita in the village grew by RMB 1,013 than the year of 2008 and RMB1,044 that the year of 2010.

6 Progress of Land Acquisition and Resettlement of Its branches

6.1 Progress of Land Acquisition and Resettlement of Its branches

48. According to the land acquisition plan of the its branches, the total area of land to be acquired is 1,336,356 m2, including 98,776 m2 of arable land, 401,719 m2 of forest land and 835,861 m2 of existing road and land of other purposes. Compensation for forest land as acquired has been paid as a part of the compensation package of the main line works. As agreed between the local government and HPCD, land acquisition of the other categories and removal of attachments for the its branches shall be the responsibility of the local government and the compensation shall be made with reference to that for the main line works. So far, compensation has been paid in full amount to the affected HHs. During the survey, no complaints were made by the affected HHs on compensation. By April 30, 2010, all the compensation and resettlement work had finished. See Table 6 for information about land acquisition and

28 compensation for the its branches.

49. By April 30, 2009, land acquisition and resettlement work had been completed for all the 22 its branches of Heilongjiang Linquan Highway Project.

50. Construction of the its branches mainly involves pavement construction and widening on existing embankment, thus involving small amount of land acquisition and resettlement and generating no negative impacts on affected households.

6.2 Survey of Villages, Towns and Townships Affected by the Its branches of

Linquan Highway Project

51. Survey of the link road in Xinsheng Township of Baiquan County: This link road is a 19.2km long Class 4 road. Starting at Xinsheng Township Government Street on the east end and connecting Linquan Highway via Sandao Town, this link road played an active role in improving the traffic condition and driving the economic growth in

Xinsheng Township. In 2009, Xinsheng Township achieved a GDP of RMB

148,960,000, representing a slight increase than Year 2008 and achieved a GDP of

RMB168, 350,000 in 2010, rose by 13% than that of 2009. In the year of 2009, its net income per capita for farmers reached RMB 3,339, rose by 150% than Year 2008. In the year of 2010, the net income per capita for farmers reached RMB3,873, rose by

16%. In 2009, 4 poverty-stricken villages in the township threw off poverty and there are 4 province-level poverty-stricken villages in the township that have been included in the poverty relief plan of Heilongjiang Province; whereas in the year of 2010, another 3 poverty-stricken villages in the township threw off poverty; however since the drought, 4 villages were returned to poverty; the full length of the road network of the township is 320km, including 100km of hard pavement and 76km of cement pavement. Since the execution of the national plan that requires every village is connected with the road network, 64 km of village road has been completed, and

29 16km road was completed in 2010; additionally there are extra 64km uncompleted, which is planned to complete in future 3 years.

30 Statistics of Land Acquisition and Compensation for the Its branches of Jina Highway Linquan Section

Table 6 Up to December 31, 2010 Xinglong Linkou Forest Forest Ownership Suiling Baiquan Hailun Tonghe Tieli Qing’an Linkou Administration Total Administration Bureau Bureau Paddy field 2,754 7,663 2,459 290 13,166 Dry land 2,485 1,184 8,932 2,957 55,816 14,236 85,610 Forest land 45,567 136,330 2,896 92,508 10,532 5,045 108,841 401,719 Natural grassland 1,064 1,064 Rural road 258,581 168,039 6,341 71,057 14,101 117,365 53,451 85 689,020 Ponds and pools 218 122 340 Irrigation land 53 53 Educational land 57 57 Countryside 2,862 8,295 4,184 1,918 8,342 3,899 29,500 residential land Land for road 45,814 45,814 construction Streets and 26,032 13,394 39,426 alleys Land for 98 157 255 hydraulic works Unallocated land 3,880 8,580 1,810 2,389 11,917 1,756 30,332 Total area (m2) 48,568 340,799 335,944 31,826 170,829 36,819 127,897 120,355 123,319 1,336,356 Amount of compensation 44,064.00 843,886.40 590,507.84 386,972.60 240,793.00 105,845.32 347,400.40 804,915.24 162,862.64 3,527,247.44 (RMB) Data source: Statistics of Linquan CONSTRUCTION HEADQUARTERS

31 52. Survey of Xing’an Village of Xinsheng Township, Baiquan County: The Xinsheng

Township link road runs through Xing’an village. Construction of this link road will significantly improve the traffic condition and contribute to the economic growth of

Xing’an Village. The village has 890 households and a total population of 3000 people, including 1200 people with labor capability, 98 ethnic minority people. There are 240 poverty-stricken households involving a population of approximately 600 people who are poor because of aging and diseases. In 2009, the village achieved a net income per capita of RMB4,500, remaining at the same level as that of Year 2008; on 2010, the per capita net income was rose by 14.3%, achieving to RMB5,144; the village had a total land area of 21,168 mu (dry land). There is a primary school in the village with approximately 140 students (of Grade 1 to 5) and one private clinic but no village clinic.

The village is located approximately 5km and 25km away from the township and the county town. Means of transport include bicycles and motorcycles. There are mini-buses running through the village every day and stopping to drop off or pick up passengers. Thanks to the construction of the link road, travel time from the villages to the county town was shortened from 1 hour as before to 20 minutes and traveling is very convenient for villagers.

53. Survey of Qing’an Link Road and Qinlao Link Road in Qing’an County: Both its branches were completed on schedule and compensation for land acquisition and resettlement was already paid to the affected HHs on time. Land acquisition and resettlement was smoothly carried out for both its branches and the affected HHs were compensated against the same standard as for the arterial highway and made no complaints in this regard. Construction of these its branches has significantly improved local traffic conditions and brought new chances of development for the local economy.

32

7 Employment Opportunities Provided by Main Line Contractors of Linquan Highway Project

7.1 Local labor force employed by contractors

54. Contractors of 26 bid sections of the Project employed approximately 1949 skilled farmer workers, 7,136 ordinary farmer workers and 275 ethnic minority farmer workers; 1,310 farmers from the affected households, 991 women workers in the project area and 1,781 local poor workers were employed. Training was provided to

50,489 local farmers in total. 13,053 jobs were provided for local farmers. Assuming that every employed farmer worked for 3 months for the project at a monthly salary of

RMB 2,000, the contractors of the 26 bid sections of the Project offered 13,053 workers from local farmers a total income of 78.318 million (equivalent to RMB 6,000 per capita).

7.2 Survey of Machinery Rented by Contractors from Local Villagers

55. The contractors of 26 bid sections of the Project rented 930 mechanical plants from local farmers in the project area. Assuming that each mechanical plant is used for 4 months on site at a monthly rent of RMB 5,000, local farmers in the project area earned RMB 18.6 million in total.

7.3 Survey of Houses Rented by Contractors in the Project Area

56. The contractors of 26 bid sections of the Project totally spent RMB7.52 million in renting houses of local farmers or urban residents in the project area as offices or temporary residence, which made the population along the project increase the income of RMB7.52 million totally.

33 7.4 Evaluation on additional job opportunities and income provided by the contractors to local population in the project area

57. During the construction of the road project, the contractors have done their best to provide additional job opportunities and revenues to the local farmer, in particular those affected by land acquisition and resettlement, in accordance with the requirements of ADB and contracts signed with the CONSTRUCTION

HEADQUARTERS. The contractors did all they can to rent mechanical plants from local farmers and contributed to local economy and reduced the negative impacts on local affected people due to acquisition of land for road construction. Statistics of labor employment and machinery lease of the 26 bid sections of the Project reveal that the contractors took active actions to provide additional job opportunities and revenue for local farmers and affected population as required by the CONSTRUCTION

HEADQUARTERS. See Table 7 for statistics of jobs and income opportunities provided by the contractors to local APs.

34 Table 7 Statistics of Local Labor Employed Along the Project Statistics of Employment of Local Labor Along the Project Number of Number of House Rent Including: Days input Mechanical Completed Time & Land Total Skilled Ethnic AP of land Poor into the Plants by Salary Farmers Women Salary Training Rent worker Minority acquisition people construction Rented Day/person Contractor Person Person RMB/month Contractor Person Person Person Person RMB/month Person/times RMB/month No. month c01 660 85 3000 360 10 196 40 8 1200 506 30 3 Ding Limei c02 400 58 1500 90 8 60 60 102 1500 8600 30 1500 20 Cong Lin c03 371 64 1500 80 8 62 52 102 1100 8600 30 1500 16 Zhang Qiang c04 435 71 2400 220 12 56 36 50 1800 2918 30 5000 30 Wang Naikun c05 158 18 1800 106 2 2 10 14 1200 230 30 31 Li Chengming c06 806 185 2100 284 3 216 112 10 1200 2200 21 3300 41 Liu Fuyun

Total foreach contract in2009 c07 1175 242 2500 580 82 56 6 282 1500 9422 30 29 Wu Xuehui c08 221 67 1800 98 2 6 16 32 1800 314 30 4500 35 Zhang Daoqian c09 624 47 2500 468 10 68 24 24 1500 1320 20-30 1500 39 Wang Xinqi c10 1038 174 2500 835 1 20 16 4 1200 876 30 2 Li Bo c11 575 66 2000 440 1 25 70 14 1050 1910 28-31 28000 3 Yao Zhongjie c12 757 43 2000 490 30 9 18 242 1500 5880 25 15000 54 Gao Li c13 890 112 1500 320 32 64 128 260 1300 1002 25-28 7500 62 Wang Haiyan c14 405 38 2000 264 16 10 60 40 1800 460 30 14350 51 Gao Lichun c15 188 11 2200 108 1 44 20 10 1600 434 20-30 23540 88 Cui Yanbo c16 857 68 2900 406 16 174 40 156 1200 392 24 14 Li Ying c17 447 48 3000 384 0 12 34 36 1500 20 24-30 44 Zhang Wei c18 713 80 1500 236 0 66 84 270 1500 1472 18-24 30000 48 Yin Chengjun

c19 443 60 2500 300 12 8 50 24 1200 2610 30 20000 72 Zhang Chao c20 410 74 3000 240 3 36 40 40 1500 864 30 8000 48 Sun Zhigang c21 532 236 3000 204 2 14 20 14 1800 50 30 20000 32 Cao Chunshui c22 147 21 3000 56 1 7 5 2 1800 30 30 6000 46 Huang Guiping c23 58 6 3000 22 0 40 1 2 1200 28 30 5500 62 Yan Qiang c24 282 24 2600 230 1 28 1 3 2000 35 30 10500 36 He Yunfu c25 27 4 2200 21 0 1 0 0 1500 200 30 1100 2 Cui Yanbo c26 434 47 2000 294 22 30 48 40 1800 116 30 2000 22 Xiong Hui Total 13053 1949 7136 275 1310 991 1781 50489 930 Note: The data covered by the table above is the data reported by every contractor yearly in the construction period.

35 6 Conclusions

58. Data covered by the completion report mainly come from the actual statistics of land acquisition and resettlement and compensation provided by Linquan

CONSTRUCTION HEADQUARTERS. The external monitoring agency conducted a statistical analysis of the statistics provided by the Department of Planning and the

Department of Coordination of Linquan CONSTRUCTION HEADQUARTERS and the contractors and carried out a sample survey of some towns and townships and AP of land acquisition in Linkou, Tonghe, Tieli, Qing’an and Baiquan. This is also the base to prepare and compile the resettlement completion report herein.

59. By May 31, 2009, all the land acquisition and resettlement and compensation work for both the arterial highway and the its branches had been completed, with nothing problems breaching the requirements of the RP found. The actual land acquisition and resettlement compensation standard is higher by over 20% than the limit specified by

“Resettlement Program”. .

60. The households in Dongxing Street, Tonghe Town, Tonghe County whom are required to demolish and resettle had been resettled well by Tonghe County

Government. Tonghe County Government constructed 7 economically affordable housing to properly resettle these households, which improve their living conditions hugely. The economy income of the households affected grows year after year, and their living level is raising continuously. The houses in other villages and towns were demolished and relocated under the support of the countryside and township, as well as the local village committee, where the land were timely provided to the households affected, and thence the living condition and housing condition of the households resettled have been improved to a great extent.

36 61. Thanks to the efforts of the governments of all relevant counties and cities, the land acquisition and resettlement work for both the its branches and the arterial highway of the Project had been fully implemented by the end of May 2009.

62. Storms during the construction of Linquan Highway Project resulted in serious scours to the side slopes of subgrade. As a result, some farmlands along the highway were filled up with silts and young crops were affected, resulting in some financial losses to the farmers, who have received compensations from both the

CONSTRUCTION HEADQUARTERS and the contractors.

37