RESETTLEMENT PLAN

NANTAI ISLAND INLAND RIVER REHABILITATION PROJECT

Supplementary Appendix to the Report and Recommendation of the President to the Board of Directors

on the

FUZHOU ENVIRONMENTAL IMPROVEMENT PROJECT

in the

PEOPLE’S REPUBLIC OF CHINA

Fuzhou Urban Visual Construction Development Company

This report was prepared by the Borrower and is not an ADB document.

SEPTEMBER 2004

1 PREFACE

This Resettlement Plan (RP) has been prepared by Fuzhou Urban Management Regulatory Bureau with assistance provided under the Technical Assistance Group of ADB. The RP has been formulated based on the PRC laws, local regulations and the Asian Development Bank (ADB) policies on Involuntary Resettlement. The RP provides effective approaches to the land acquisition and resettlement of Nantai Island Inland River Rehabilitation Project. The RP is based on socio-economic survey and households sample surveys of potentially affected persons (APs) according to the design. After concurrence from ADB, the RP will then be approved by Fuzhou Municipal Government (FMG).

BRIEF INTRODUCTION AND APPROVAL OF THE RP

Through Ministry of Finance, FMG has applied a loan from ADB to finance the project. Accordingly, the project must be implemented in compliance with ADB social safeguard policies. This RP represents a key requirement of ADB and will constitute the basis for land acquisition, compensation and resettlement. The RP complies with PRC laws and local regulations but includes some additional enhancement measures implementation and monitoring arrangements to ensure high quality resettlement results.

FMG hereby approves the contents of this Resettlement Plan and guarantees that funds will be made available as stipulated in the budget. FMG has discussed the draft RP with relevant local officials and has obtained their concurrence. FMG authorizes Fuzhou Urban Management Regulatory Bureau as the responsible agency to manage the implementation of the Project and related resettlement activities, and every district government is responsible for implementation of the project and related resettlement activities within the district.

Approved on ______(date) by:______(Mayor, FMG)

2

Table of Content CHAPTER 1 INTRODUCTION ...... 1 1.1 INTRODUCTION ...... 1 1.2 SCOPE OF THE PROJECT ...... 1 1.3 SOCIOECONOMIC BENEFITS ...... 2 1.4 LAND ACQUISITION AND RESETTLEMENT IMPACTS ...... 2 1.5 PREPARATION OF RESETTLEMENT PLAN (RP) ...... 3 CHAPTER 2 IMPACTS OF LAND ACQUISITION AND RESETTLEMENT...... 5 2.1 PRINCIPLES AND MEASURES TO MINIMIZE RESETTLEMENT ...... 5 2.2 IDENTIFICATION OF APS...... 5 2.3 SCOPE OF LAND ACQUISITION AND RESETTLEMENT...... 6 2.3.1 Permanent Land Acquisition ...... 7 2.3.2 Temporary Land Occupation...... 7 2.3.3 Residential House Demolition...... 7 2.3.4 Affected Enterprises and Shops...... 10 2.3.5 Number of Affected Households and Population...... 21 2.3.6. Affected Public Facilities...... 22 2.3.7 Infrastructures and Special Facilities ...... 24 2.3.8 Impact on Historical Relics and Mineral Resources ...... 27 2.3.9 Vulnerable Groups...... 27 2.4 IMPACT ANALYSIS...... 27 2.4.1 Impacts on Agriculture ...... 27 2.4.2. Impacts on Building Demolition...... 27 CHAPTER 3 LEGAL FRAMEWORK AND POLICIES...... 29 3.1 SUMMARY OF CHINESE LAWS AND REGULATIONS ...... 29 3.1.1 Land Administration Law of the PRC (1998) ...... 29 3.1.2 Implementing Regulations of the Land Administration Law ...... 29 3.1.3 Urban Housing and Resettlement Management Regulations...... 30 3.1.4 Urban Housing Compensation Policy and Resettlement Standard in Fujian and Fuzhou...... 31 3.2 ADB’S RESETTLEMENT POLICY AND SOCIAL PROTECTION STRATEGY ...... 37 3.2.1 Involuntary Resettlement Policy of ADB...... 37 3.2.2 ADB’s Social Protection Strategy...... 38 3.3 DIFFERENCE BETWEEN CHINESE LAWS AND ADB POLICIES...... 39 3.3.1 Resettlement Compensation...... 39 3.3.2 Lack of Rights ...... 39 3.3.3 Vulnerable Groups...... 39 3.3.4 Temporary Housing ...... 40 3.4 PRINCIPLES OF RESETTLEMENT...... 40 3.5 PRINCIPLES AND OBJECTIVES OF LAND ACQUISITION AND RESETTLEMENT...... 40 3.5.1 Eligibility...... 41 3.5.2 Compensation Principles...... 41 3.6 CALCULATION OF COMPENSATION RATES ...... 44 3.6.1 Permanent Land Acquisition Compensation Rates...... 44 3.6.2 Houses, Structures and Auxiliaries...... 45 3.6.3 Public Facilities and Infrastructures...... 45 3.6.4 Taxes on Land Acquisition...... 46 3.6.5 Entitlement Matrix...... 46 CHAPTER 4 SOCIOECONOMIC PROFILE OF AFFECTED PEOPLE ...... 52 4.1 DEMOGRAPHICAL CHARACTERS OF THE SURVEYED HOUSEHOLDS...... 52 4.2 LENGTH OF STAY IN PRESENT COMMUNITY AND HOUSING CONDITIONS ...... 53 4.3 HOUSEHOLD INCOME AND EXPENDITURE ...... 53 4.4 PROPERTY OWNERSHIP ...... 54 4.5 POOR HOUSEHOLDS...... 55 4.6 LAND, PRODUCTION AND INCOME ...... 55

3 4.7 CHOICES OF LAND ACQUISITION AND RESETTLEMENT AND COMPENSATION...... 56 4.8 KNOWLEDGE OF THE PROJECT AND RP...... 57 4.9 KNOWLEDGE OF RELATED LAWS AND REGULATIONS...... 58 4.10 VIEWS OF THE PROJECT BY APS ...... 58 CHAPTER 5 RESETTLEMENT, LIVELIHOOD & INCOME RESTORATION PLAN...... 60 5.1 OBJECTIVES AND PRINCIPLES OF RESETTLEMENT AND REHABILITATION PLAN ...... 60 5.2 PREFERRED OPTIONS FOR COMPENSATION AND RESETTLEMENT BY APS...... 60 5.3 RESETTLEMENT AND COMPENSATION PLAN...... 61 5.3.1 Resettlement and Rehabilitation for Relocated Households ...... 61 5.3.2. Relocation and Rehabilitation of Enterprises and Shops ...... 63 5.3.3 Compensation and Restoration of Affected Public Buildings...... 65 5.3.4 Economic Rehabilitation for Land Loss Farmers...... 65 5.3.5 Restoration of Special Facilities and Infrastructure...... 68 5.3.6 Rehabilitation Plan for Vulnerable Groups ...... 68 5.3.7 Assistance during Resettlement Process ...... 68 5.3.8 Potential Risks ...... 69 CHAPTER 6 ENVIRONMENT PROTECTION AND MANAGEMENT OF THE PROJECT ...... 70 6.1 NECESSITY OF ENVIRONMENT PROTECTION...... 70 6.2 ENVIRONMENT IMPACT AND MITIGATION MEASURES OF THE AFFECTED AREA...... 70 6.2.1 Environment Impact of the Project...... 70 6.2.2 Environmental Protection Measures ...... 71 6.3 HOUSE DEMOLITION AND SITE CLEARANCE ...... 72 6.4 ENVIRONMENTAL MANAGEMENT OF RESETTLEMENT AREA ...... 73 6.5 MONITORING OF ENVIRONMENT, SANITATION AND EPIDEMIC PREVENTION ...... 74 CHAPTER 7 PUBLIC DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 76 7.1 PUBLIC PARTICIPATION/CONSULTATION...... 76 7.2 PUBLIC PARTICIPATION DURING THE PREPARATION OF THE RP ...... 76 7.3 DISTRIBUTION OF THE RP & RESETTLEMENT BROCHURE...... 79 7.4 PUBLIC PARTICIPATION PLAN...... 79 CHAPTER 8 ORGANIZATIONAL STRUCTURE...... 81 8.1 FUZHOU URBAN VISUAL CONSTRUCTION AND DEVELOPMENT COMPANY...... 81 8.2 FUZHOU HOUSE DEMOLITION ENGINEERING OFFICE ...... 83 8.3 RESETTLEMENT OFFICE OF TOWNSHIP GOVERNMENT...... 84 8.4 VILLAGE COMMITTEE AND VILLAGE GROUPS ...... 85 8.5 LAR LEADING GROUP...... 85 8.6 RESETTLEMENT COORDINATION GROUP ...... 85 8.7 NON-GOVERNMENTAL ORGANIZATIONS ...... 86 8.8 STAFFING ...... 86 8.9 FACILITIES...... 87 8.10 LAR STAFF TRAINING ...... 87 8.11 PRODUCTION REHABILITATION/SKILLS TRAINING FOR RESETTLERS...... 87 8.12 INSTITUTIONAL STRENGTHENING ...... 88 CHAPTER 9 GRIEVANCE PROCEDURE ...... 89 9.1 POSSIBLE GRIEVANCE AND SOLUTION...... 89 9.2 GRIEVANCE CHANNELS AND PROCEDURES ...... 89 CHAPTER 10 LAR COSTS AND BUDGET ...... 91 10.1 COSTS AND BUDGET...... 91 10.2 DISBURSEMENT OF FUNDS ...... 95 10.2.1 Disbursement Principles...... 95 10.2.2 Institutions in Charge of the LAR Funds...... 96 10.3 FLOW OF FUND ...... 96 10.3.1 Agreement Signing ...... 98 10.3.2 Fund Disbursement...... 98 10.4 INFLATION ALLOWANCE ...... 98

4 10.5 PHYSICAL CONTINGENCIES ...... 98 CHAPTER 11 MONITORING AND EVALUATION ...... 100 11.1 OBJECTIVES AND REQUIREMENTS OF MONITORING AND EVA LU ATI ON ...... 100 11.2 INTERNAL MONITORING ...... 101 11.3 EXTERNAL MONITORING ...... 101 11.4 MAJOR RESPONSIBILITIES AND DUTIES...... 102 11.5 SPECIAL CONSIDERATIONS ...... 102 11.6 CONTENTS AND DISTRIBUTION OF M&E REPORT ...... 103 CHAPTER 12 LAR IMPLEMENTATION SCHEDULE ...... 105 12.1 PRINCIPLES OF SCHEDULING ARRANGEMENTS ...... 105 12.2 IMPLEMENTATION PROCESS...... 105 11.2.1 Final Confirmation of Property Inventory ...... 105 12.2.2 Approval of LAR Documents ...... 105 12.2.3 Compensation and Resettlement Agreement ...... 105 12.2.4 Implementation Schedule...... 106 12.3 PRINCIPLES OF THE RESETTLEMENT SCHEDULE...... 106 APPENDIX 1. THE IMPLEMENTATION METHODS OF LAND ADMINISTRATION LAW OF THE PEOPLE'S REPUBLIC OF CHINA IN FUJIAN...... 109 APPENDIX 2. FUZHOU CITY URBAN HOUSE DEMOLITION ADMINISTRATION REGULATIONS 131 APPENDIX 3. SUMMARY OF MEETING NOTES OF VILLAGE MEETINGS FOR THE LAND ACQUISITION AND RESETTLEMENT OF THE NANTAI ISLAND INLAND REHABILITATION PROJECT 143 APPENDIX 4. SUMMARY OF THE NEGOTIATION CONFERENCE ON RESETTLEMENT AND RESTORATION PLANS OF THE INLAND RIVER REHABILITATION PROJECT ...... 146 APPENDIX 5 RESETTLEMENT INFORMATION BOOKLET ...... 155 APPENDIX 6. TERMS OF REFERENCE FOR EXTERNAL MONITORING...... 182

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List of Tables

Table 1-1 Summary of Land Acquisition and House Demolition...... 3 Table 2-1 List of Different Categories of APs by the Project...... 5 Table 2-2. Names of 13 Rivers under the Nantai Project ...... 6 Table 2-3. Land Acquisition and Resettlement by Community and by River ...... 6 Table 2-4. Impacts of Permanent Land Acquisition ...... 7 Table 2-5. Housing Demolition by Township/Street ...... 8 Table 2-6. House Demolition by Project Component (River)...... 8 Table 2-7. House Demolition by Status of Property Rights...... 8 Table 2-8. House Demolition by Rural and Urban Status ...... 9 Table 2-9. Affected Enterprises ...... 10 Table 2-9-1 Details of Affected Enterprises ...... 11 Table 2-10. Details of Affected Shops...... 21 Table 2-11 Summary of Affected Enterprises and Shops ...... 21 Table 2-12. Number of Households and Population, and Enterprises and Shops Affected by LAR ...... 21 Table 2-13. Affected Public Buildings by Village, Township and River ...... 22 Table 2-14. Details of Affected Infrastructures and Special Facilities ...... 25 Table 3-1. Compensation Rates for Permanent Land Acquisition ...... 44 Table 3-2. Compensation Standard of House Demolition...... 45 Table 3-3. Compensation Standard of Auxiliaries...... 45 Table 3-4. Compensation Standards for Public Facilities and Infrastructures ...... 46 Table 3-5. Taxes on Land Acquisition (RMB/mu)...... 46 Table 3-6 Entitlement Matrix of APs ...... 47 Table 4-1. Age Structure of Respondents...... 52 Table 4-2 Household Income and Expenditure ...... 53 Table 4-3 Annual Income and Expenditure Per Capita by Affected District...... 53 Table 4-4 Consumption and Trading of Agricultural Products ...... 54 Table 4-5 Property Ownership...... 54 Table 4-6 Land, Production and Income...... 55 Table 4-7 Rank Choices of Resettlement for the Surveyed Population...... 56 Table 4-8 Comparison of the Preferred House Compensation between Urban Area and Rural Area...... 57 Table 4-9 Information Sources to APs about the Project...... 58 Table 4-10 Views of the Project by APs...... 59 Table 5-1 Options of Resettlement...... 60 Table 5-2 Preferred Place for APs to Be Relocated ...... 61 Table 5-3 Socioeconomic Situation of the Affected Townships...... 65 Table 7-1. Public Consultation for Disclosure of the RP to Affected People...... 79 Table 7-2 Plan for Public Information and Consultation ...... 80 Table 8-1 Composition and Qualifications of Staff Members for FUVCDC...... 83 Table 8-2 Composition and Qualifications of Staff Members for FHDEO ...... 84 Table 8-3 Staffing Arrangements of Organizations For LAR Implementation ...... 86 Table 10-1 Annual LAR Budget ...... 91 Table 10-2 Cost Estimate of LAR for Nantai Island Inland Rivers Rehabilitation .... 92 Table 12-1 Project Implementation Schedule...... 107 Table 12-2 LAR Schedule...... 107

6 Chapter 1 Introduction

1.1 Introduction

Nantai Island is located between the north and south ports in the lower reaches of the Min River. In terms of jurisdiction, the low-lying Nantai Island belongs to the Cangshan District of Fuzhou City. The administrative area of the island is 142 km2, with about 118.2 km2 of land area. The population in Nantai Island is 352,000, including 187,700 of urban population and 164,300 of rural population.

Nantai Island plays a very important role in the development of Fuzhou. According to the urban master plan, the Fuzhou Municipal Government and the Government of Cangshan District will develop and build Nantai Island for the purpose of promoting local economic development. Nantai Island Inland River Rehabilitation Project is one of basic infrastructure programs to improve the natural conditions and the investment environment. Fuzhou Municipal Government has accorded great importance to this project for the betterment of the quality of life of local people.

There are nine flood dikes in Nantai Island that include nine bank sections with the total length of 47.92 km. Their primary function is to protect people’s lives and property. The four major dikes, namely the Jianxin North Dike, Jianxin South Dike, Gaishan North Dike and Gaishan South Dike, each protect a minimum area of 10,000 mu (667 ha). The remaining dikes each have a protection area of between 1,000 mu and 10,000 mu (66.7~667ha). There are five existing drainage pumping stations with 14 sets of generators, with a total capacity of 1,178 kw, and 14 facilities. In spite of the 39 floodgates (15 along the north bank and 24 along the south bank, the drainage facilities are so weak that a rain will always cause flooding to a more or less extent. Moreover, many of the Nantai Island inland rivers suffer from serious siltation, which, together with many bends, has contributed to water logging. The drainage capacity of 80% of the inland rivers is lower than the standard of once every two years.

Existing siltation and serious human-induced obstruction of the inland rivers have caused the decrease of flood drainage capacity year after year, such that the drainage capacity can no longer meet the demands of agricultural production and urban sustainable development. In this regard, the proposed Project will straighten the bends, broaden the waterways and dredge up the riverbeds so as to safeguard people’s lives and production and ensure the sustainable development of the local economy. Thirteen (13) dominant waterways will be rehabilitated in order to enhance the flood control capacity of inland rivers, reduce disasters from water logging, improve the natural environment of Nantai Island, enhance the quality of life of local residents and develop an attractive investment environment.

1.2 Scope of the Project

Of the 118.2 km2 of land area of Nantai Island, 78.82 km2 is placed under water logging protection. Thirty-one inland rivers in the whole Nantai Island need to be rehabilitated. The proposed scope of the project covers thirteen major inland rivers in Cangshan central area, and the areas of Gaishan, Gaohu and Luozhou-Chengmen.

The length of these rivers – including the rivers of Gangtou, Longjing, Yuejin, Pandun, Linpu, Lianban, Puxia, Mazhou, Baihuting, Yixun, Luocheng, Luozhou, Lulei and so on – totals

1 45.86 km.

1.3 Socioeconomic Benefits

The Nantai Island Inland River Rehabilitation Project is expected to bring about tremendous environmental and socioeconomic benefits by improving the natural environment of the Nantai Island, protecting people’s lives and properties from flooding, and improving the local investment environment. Especially farmland, factories, shops and other productive or living facilities in the project areas will be protected from flooding. After inland river rehabilitation, the areas of parks and scenic landscape will be increased greatly.

The specific benefits from both the construction and operation periods are described in the following two sections.

1.3.1 Construction Period

z Project construction will provide new employment opportunities and income generation; and, z The procurement of construction materials and agricultural products from local communities will increase earnings of the local people.

1.3.2 Operation Period

z Increased long-term employment opportunities and income will accrue to local communities. z The protection of farmland from flooding disaster will reduce the loss of agricultural production and the income of local farmers. z According to the pre-feasibility study of the Project, the annual economic benefits from drainage improvement will average RMB 26.19 million per annum after completion of the rehabilitation of the thirteen inland rivers. z Other socioeconomic benefits will include the improved natural and ecological environment, expanded landscaping and scenery, improved residential and urban environment, reduced water pollution, and improved the living and health conditions for local people. z The Project will also promote the tourism value in the use of improved environmental resource, and the investment environment.

1.4 Land Acquisition and Resettlement Impacts

The scope of land acquisition is within the width of a ten (10) meters zone along the both banks of the thirteen (13) inland rivers that the Project covers. The Project will affect four townships (Gaishan, Chengmen, Luozhou and Cangshan) and one sub-district (Xiadu). The detailed information on the land acquisition and resettlement is provided as follows.

The project component will acquire a total of 1,106.8 mu (73.8 ha) of land areas, which include 338.2 mu (22.6 ha) of cultivated land, 464.7 mu (30.98 ha) of fish pond, 221.3 mu (14.75 ha) of fruit garden, 17.6 mu (1.12 ha) of woodland, and 64.9 mu (4.33 ha) of other land. The land acquisition will affect 661 rural households and 3,583 persons, averaging 0.1 mu per person.

2 Along with land acquisition, 191,081 square meters of houses will be demolished, with relocation of 1,104 households and 4,858 persons. The demolition and relocation will affect 43 villages. In addition, the land acquisition will also affect 75 enterprises and 7 shops with demolition of 34,271 square meters of structures and affecting 2,771 employees.

The project will also affect a range of public facilities, including hospitals, schools, village administration offices, public spaces, farm produce markets, village roads and bridges, power lines, water supply pipelines, public toilets, bicycle sheds, broadcast and communication lines, and so on. Details of the impacts are summarized in Table 1-1.

Table 1-1 Summary of Land Acquisition and House Demolition House Demolition (m2) Permanent Land Project Enterprises and Public Acquisition (mu) Residential Shops Facilities Nantai Island Inland River Rehabilitation Project (13 1,106.8 191,081 34,271 10,020 rivers)

1.5 Preparation of Resettlement Plan (RP)

The Project Preparatory Technical Assistance (PPTA) was implemented by CDM International between May and September, 2003 under contract to the ADB. The Project Implementing Agency (IA) contracted the compilation of the RP for the Nantai Island Inland River Rehabilitation Project to the Fuzhou Municipal Engineering Consulting Company (FMECC). On the basis of the surveys organized and carried out by the Fuzhou Inland River Management Bureau (FIRMB) and the Cangshan District Urban Management Bureau (CDUMB) in June 2003, the FMECC began to develop RP the outlines in July 2003 and upon completion submitted them to the Fuzhou Project Management Office (FPMO). The contents of the RP were confirmed through communicating and cooperating with the project IA and CDM. The FPMO, IA, CDM, feasibility study (FS) design institute, environmental impact assessment (EIA) design institute, FMECC and other related departments visited the project sites in July 2003, and requested that additional surveys be conducted on the resettlement, and the RP be updated on the basis of the survey information.

In accordance with supplementary information request by CDM, FMECC cooperated with IA and the related departments to re-survey the land acquisition and resettlement area and the affected households from August 6-20, 2003. This RP was prepared on the basis of the original and supplementary surveys and with the assistance of the TA specialists, as well as the results of consultations with representatives of township governments and village committees, and APs.

Specifically, the preparation of the RP was based on the following information and activities:

z Pre-feasibility study of Nantai Island Inland River Rehabilitation Project (13 rivers); z Visits to the project affected areas; z Discussion with relevant officers of Fuzhou Urban Management Bureau, Fuzhou Urban Visual Construction and Development Company (FUVCDC) and Fuzhou Inland River Management Bureau (FIRMB); z Discussion with village or township government leaders and affected peoples (APs);

3 z Sample socioeconomic survey of affected households; z Land acquisition and resettlement survey information from July to August 2003; z Focus group discussion during the ADB PPTA phase; z Consultation workshops on environment and resettlement in August and November 2003; and, z Community meetings on the Resettlement Information Booklet (RIB). The major regulatory and policy requirements applicable to the Project entail:

z Flood Control Law of PRC z National Standards of Flood Control (GB50201-94) z Dike Engineering Design Criteria (GB50286-98) z Fujian Provincial Temporary Regulation on Urban Drainage Design z Drainage Engineering Plan in Cangshan District, Fuzhou z Fuzhou City Proper Long-Term Plan z Water Flushing Plan Proposal in Jinshan New District in Fuzhou z Land Administration Law of the PRC z Implementation Regulation of Land Administration Law of the PRC (for Fujian Province – see Appendix I] z Technical Criteria Value Assessment of Urban House Demolition in Fujian Province z House Demolition Management Method of Fuzhou z Regulation on Implementation of House Demolition Management Method of Fuzhou (see Appendix II]

4

Chapter 2 Impacts of Land Acquisition and Resettlement

2.1 Principles and Measures to Minimize Resettlement

The project implementation agency and design institutes have made great effort in selecting the sites of the project and optimizing the design based on the project requirement and financial resources, in order to minimize the acquisition of arable land and house demolition and to keep the number of resettled people at the lowest level. The work of the design institute has covered measurement of the topography of downstream Min River, hydraulic model testing, and simulation of alternative flood control dams. In the engineering feasibility study, the principle of both meeting the technical demands and at the same time keeping the number of resettled people at the lowest level was adopted.

In compliance with the inland river controlling line approved by Municipal Planning Bureau, the existing river course will be rehabilitated. At the same time of satisfying the demand of releasing floodwater, the aspect of landscape will also be considered. The original design covered 31 inland rivers. After careful investigations and further consultations with local residents, the design was amended and optimized in order to keep the arable land acquisition and resettlement at a minimum, and 13 major inland rivers are finally included in this project.

2.2 Identification of APs

The measurement survey on land acquisition and resettlement of the Project is completed on August 20, 2003. The APs are classified into three categories: z APs affected by permanent land acquisition: Those rural families and people whose farmland (including vegetable land, fish pond, garden land, woodland) will be permanently acquired. This category includes 661 families totalling 3,583 persons. z APs affected by house demolition and relocation: Those families and people whose houses and auxiliary structures will be demolished and relocated. This category of affected people includes 1,104 families totalling 4,858 persons. z APs as employees of affected businesses: Those who work for 75 enterprises and 7 shops that will be affected by the project.

Based on the initial survey, most of the businesses are partially relocated or affected. All of the employees of the affected companies can be assigned to work through internal adjustment or rebuilding of the companies.

Table 2-1 List of Different Categories of APs by the Project Project Impacts Rural Families Urban Families TOTAL 1) Land loss 661 0 661 2) House loss 765 339 1,104 (a) with house certificates 399 264 643 (b) without certificates 366 75 461 3) Tenants n.a. n.a. 67 4) Businesses Enterprises Shops (a) owners 75 7 82 (b) employees 2745 26 2,771

5 2.3 Scope of Land Acquisition and Resettlement

The proposed inland river rehabilitation project will include 13 inland rivers with a total length of 45.9 km. The scope of land acquisition will cover 10 meters on both sides of the river. Table 2-2 provides a list of the selected inland rivers. They include Gantou River, Longjin River, Yuejin River, Pandun River, Linpu River, Lianban River, Puxia River, Mazhou River, Baihutin River, Yixu River, Luochen River, Luozhou River and Lulei River.

Table 2-2. Names of 13 Rivers under the Nantai Project Width of Survey on Length of River Width of River No Name of River Both Sides of River Course (m) Course (m) (m) 1 Baihutin River* 5,300 38 10 2 Gantou River** 1,610 25~30 10 3 Lianban River 1,750 8 10 4 Linpu River 2,160 15 10 5 Longjin River* 4,187 3.5~14 10 6 Lulei River 4,950 16~32 10 7 Luochen River 3,500 11~24 10 8 Luozhou River 1,500 6 10 9 Mazhou River** 2,420 8~65 10 10 Pandun River 3,580 18~45 10 11 Puxia river 3,500 25~42 10 12 Yixu River** 2,930 26~35 10 13 Yuejin River 8,472 3.5~40 10 Total 45,859 Notes: * - part of land belongs to Land Reserve; ** - all the land belongs to Land Reserve. Land acquisition in these areas will be handled and financed by the Fuzhou Land Development Centre.

The proposed project will involve four townships and one sub-district, including Gaishan, Chenmen, Luozhou and Cangshan townships and Xiadu Sub-district. The summary information on the land acquisition and house demolition by each affected community and by river is shown in Table 2-3. In total, 43 villages will be affected, 1,106.8 mu of land will be permanently acquired, 191,081 m2 of residential houses and 34,271 square meters of non-residential structures will be demolished by the rehabilitation of the 13 rivers.

Table 2-3. Land Acquisition and Resettlement by Community and by River Permanent Demolished Houses and Auxiliaries Land Residential Houses and Auxiliaries Enterprise No. Name of River Shops Acquisition Number Residential Houses Buildings 2 Name of Town 2 (m ) (mu) of Village (m2) (m ) Gaishan 3 1 102.75 27,843.9 2,440 0 Baihutin River Luozhou 3 2 Gantou River Xiadu Sub-district 2 23,260.9 790 0 3 Lianban River 102.45 Chenmen 2 14,928.5 1,210 275 4 Linpu River, 69.26 Chenmen 3 15,797 300 0 XiaduSub-district 3 5 Longjin River 35.66 Cangshan 2 28,817.3 4,172 130 Gaishan 2 6 Lulei River 58.3 Chenmen 3 10,464 2,230 0 7 Luochen River Chenmen 1 6,530 0 0 8 Luozhou River 66.2 Luozhou 3 5,757 3,822 100 9 Mazhou River, 158.73 Gaishan 4 4,860 0 30

6 Permanent Demolished Houses and Auxiliaries Land Residential Houses and Auxiliaries Enterprise No. Name of River Shops Acquisition Number Residential Houses Buildings 2 Name of Town 2 (m ) (mu) of Village (m2) (m ) Pandun River Chenmen 1 10 12.37 8,983 5,100 0 Gaishan 1 11 Puxia river 7.37 Gaishan 1 1,451.8 771 0 12 Yixu River 344.6 Cangshan 4 15,191.5 3,635 0 Cangshan 4 13 149.1 27,195.4 9,166 100 Yuejin River Gaishan 1 Total 1,106.8 43 191,081 33,636 635

2.3.1 Permanent Land Acquisition

The permanent land acquisition for the rehabilitation of the 13 inland rivers will be 1,106.8 mu (73.79 ha). It includes 338.22 mu (22.55 ha) of farmland, 464.75 mu (30.98 ha) of water pond, 221.3 mu (14.75 ha) of orchard land, 17.61 mu (1.12 ha) of woodland, and 64.92 mu (4.33 ha) others. In total, 661 households or 3,583 people from 32 villages will be affected. Table 2-4 provides the detailed impact of permanent land acquisition among affected townships.

Table 2-4. Impacts of Permanent Land Acquisition Families and Population Affected Area of Permanent Name of by Permanent Land Acquisition Degree of No. Land Acquisition Township (no.) Land Loss (mu) Family Population 1 Cangshan 62 491 168.66 22.20% 2 Chenmen 179 1,413 240.30 7.87% 3 Gaishan 393 1,548 591.63 8.01% 4 Luozhou 27 131 106.20 10.51% Total 661 3,583 1,106.80 9.07%

2.3.2 Temporary Land Occupation

As the land acquisition is within 10 m from both sides of the rivers, there is sufficient space along the river that can be used for stacking construction materials or building temporary houses for workers, after the land transfer and implementation of resettlement. There is no need to temporarily occupy any land or houses.

2.3.3 Residential House Demolition

The construction of the Project will demolish 191,081 m2 of houses, including 21,968 m2 of concrete-frame houses, 103,881 m2 of concrete-brick houses, 32,732 m2 of brick-wood houses, 1476 m2 of mud-wood houses, 12,137 m2 of wood houses, and 18,887 m2 of simple structures. In total, 1,104 households or 4,858 persons will be relocated (see Table 2-5 for house demolition by township/sub-district and Table 2-6 for house demolition by project component/river). Of the total relocated households, 643 households have house certificates and 461 households have part of spaces without house certificates. There are 79 tenant households living in these affected households. (see Table 2-7), In terms of their current status, 339 households or 1,222 persons are urban residents and 765 households or 3,636

7 persons are rural residents (see Table 2-8). There is also a large number of auxiliaries that will be affected, including 38,500 m2 terrace, 4 wells, 12,551 m fence wall, 535 iron door, 7,937 m2 pig pen, 102 water pool, 10 temples, 69 water pumps, 186 trees (D>10 cm), 4,153 trees with fruits, and 2,874 trees without fruits. In addition, household facilities will be removed, including 1,104 electric meters, 552 water meters, 880 telephones and 950 cable TVs.

Table 2-5. Housing Demolition by Township/Street No. of Structure of House Name of No. Affected Concrete- Brick- Earth Simple Project Component Towns/St. Framed Wood Total Villages brick Wood –Wood Mixed 1 Cangshan 6 3,740 23,815 3,726 125 772 1,150 33,328.4 Longjin R., Yuejin R. Luochen R.，Pandun R.，Linpu R.， 2 Chenmen 10 7,756 32,229 9,161 185 270 2,852 52,453 Lianban R.，Lulei R. Baihuting R., Longjin R.，Mazhou R.， 3 Gaishan 16 3,406.7 21,075 13,547 864 8,881.2 10,162 57,935 Pandun R.，Puxia R., Yixu R.，Yuejin R. 4 Luozhou 6 300 9,494 3047 40 12,881 Baihuting R., Luozhou R. 5 Xiadu St. 5 6,765.3 17,268 3,251.1 302.1 2,213.7 4,682 34,483.1 Longjin R. Total 43 21,968 103,881 32,732 1,476.1 1,2137 18,887 191,081 13 inland rivers

Table 2-6. House Demolition by Project Component (River) Name of Resettlement (no.) Structure of House (m2) No Name of River Towns/ Multi-Storey Concrete Brick Mud Simple HH Popu. Wood Total Streets Building -Brick -Wood -Wood Structure Gaishan 1 Baihutin River 152 776 1,894 11,348 11,599 72 790 2,141 27,843.9 Luozhou 2 Gantou River Xiadu 210 682 44,57.3 10,759 2,396.1 302.09 2,141.7 3,204.6 23,260.9 3 Lianban River Chenmen 44 269 2,481 12,448 0 0 0 0 14,928.5 4 Linpu River Chenmen 56 315 1,402 10,360 2,170 185 70 1,610 15,797 Xiadu St. 5 Longjin River Cangshan 249 906 2,408 22,076 2,415 72 72 1,773.8 28,817.3 Gaishan 6 Lulei River 35 385 3,065 5,114 1,130 0 200 955 10,464 Chenmen 7 Luochen River 46 228 0 1,010 5,520 0 0 0 6,530 8 Luozhou River Luozhou 21 98 300 4,470 947 0 0 40 5,757 9 Mazhou River Gaishan 64 299 0 3,428 1,155 0 0 277 4,860 Chenmen 808 4,147 341 0 0 3,687 8,983 10 Pandun River 37 158 Gaishan 11 Puxia River Gaishan 54 135 68.7 550.4 148.5 20 116.2 548 1,451.8 12 Yixu River Cangshan 50 202 270 1,664.5 1,082 700 7,975 3,500 15,191.5 Cangshan 13 Yuejin River 86 405 4,814 16,506 3,828 125 772 1,150.4 27,195.4 Gaishan Total 1,104 4,858 21,968 103,881 32,732 1,476.1 12,137 18,887 191,081

Table 2-7. House Demolition by Status of Property Rights Affected Family Status of Own Name of Name of and Population Property Right or Lease No. Name of Town Total River Community No. of Pop. With Without Total Own Lease Total Families 1 Gandan 124 415 86 38 124 113 11 124 16,642.09 Gantou 2 Gantou 86 267 60 26 86 45 41 86 6,618.76 3 Gandan 64214 61 3 64 63 1 64 7,301.24 Xiadu St. 4 Longjin Gongnong 1036 7 3 10 5 5 10 726.02 5 Xiaten 10 54 10 10 10 10 3,195 Subtotal 294 986 224 70 294 236 58 294 34,483.11 6 Luozhou Aoshan 6 33 6 6 6 6 3,334 7 Baihutin Qianyuan 1046 10 10 10 10 1,910 8 Tianfu 8 39 8 8 8 8 1,880 9 Luozhou Duyuan 1567 13 2 15 15 15 4320 10 Zhouwei 5 27 5 5 5 5 437

8 Affected Family Status of Own Name of Name of and Population Property Right or Lease No. Name of Town Total River Community No. of Pop. With Without Total Own Lease Total Families 11 Wucuo 1 4 1 1 1 1 1,000 Subtotal 45 216 26 19 45 45 0 45 12,881 12 Yexia 5 22 5 5 5 5 490 13 Baihutin Baihu 45232 45 45 45 45 9,796.9 14 Guozhai 78 404 21 57 78 78 78 10,433 15 Gaohu 67262 46 21 67 67 67 4,171 Longjin 16 Jiangbian 69 221 24 45 69 69 69 5,815 17 Liufen 1 8 1 1 1 1 184 18 Zhaoyu 6 20 6 6 6 6 43 Mazhou 19 Wushan 23105 5 18 23 23 23 1,673 Gaishan 20 Tianshui 34 166 5 29 34 34 34 2,960 21 Pandun Huluzhen 22 87 1 21 22 22 22 4,250 22 Puxia Puxia 54 135 11 43 54 54 54 1,451.8 23 Zhulan 22 84 22 22 22 22 2,893.5 24 Pukou 18 82 9 9 18 18 18 11,640 Yixu 25 Zhongtin 413 4 4 4 4 508 26 Bantian 6 23 6 6 6 6 150 27 Yuejin Beiyuan 5 15 3 2 5 5 5 1,476 Subtotal 459 1,879 125 334 459 459 0 459 57,935.2 28 Lianban 27198 27 27 27 27 11,210 Lianban 29 Huanshan 17 71 6 11 17 17 17 3,718.5 30 Fulian 13 69 11 2 13 13 13 4,670 31 Linpu Lianjiang 1484 11 3 14 13 1 14 3,962 32 Shishan 29 162 17 12 29 29 29 7,165 Chenmen 33 Lonjiang 648 5 1 6 6 6 1,640 34 Lulei Lulei 27 327 27 27 27 27 8,344 35 Zhili 2 10 2 2 2 2 480 36 Luochen Chenmen 46 228 46 46 32 14 46 6,530 37 Pandun Pandun 15 71 6 9 15 13 2 15 4,733 Subtotal 196 1,268 129 67 196 179 17 196 52,452.5 38 Xianfen 1677 16 16 16 16 4,611 Longjin 39 Cangshan 13 42 13 13 13 13 2,998 40 Xiannong 1243 12 12 12 12 1,846.4 Cangshan 41 Hubian 1035 9 1 10 10 10 1,962 Yuejin 42 Zheng’an 5109 5 5 1 4 5 7,056 43 Xiahu 54 203 54 54 54 54 14,855 Subtotal 110 509 109 1 110 106 4 110 33,328.4 TOTAL 1,104 4,858 613 491 1,104 1,025 79 1,104 191,081

Table 2-8. House Demolition by Rural and Urban Status No. of Households Population Name of Town Name of River Urban Rural Total Urban Rural Total Gantou river 206 4 210 660 22 682 Xiadu Lonjin River 79 5 84 276 28 304 Subtotal 285 9 294 936 50 986 Baihutin River 0 24 24 0 118 118 Luozhou Luozhou River 0 21 21 3 95 98 Subtotal 0 45 45 3 213 216 Baihutin River 1 127 128 61 597 658 Lonjin River 28 108 136 74 409 483 Mazhou River 0 64 64 0 299 299 Gaishan Pandun River 22 22 87 87 Puxia River 54 54 135 135 Yixu River 11 39 50 45 157 202 Yuejin River 2 3 5 6 9 15 Subtotal 42 417 459 186 1693 1879 Lianban River 4 40 44 12 257 269 Linpu River 4 52 56 7 308 315 Chenmen Lulei River 0 35 35 0 385 385 Luochen River 2 44 46 62 166 228 Pandun River 2 13 15 3 68 71 Subtotal 12 184 196 84 1184 1268

9 No. of Households Population Name of Town Name of River Urban Rural Total Urban Rural Total Lonjin River 0 29 29 0 119 119 Cangshan Yuejin River 0 81 81 13 377 390 Subtotal 0 110 110 13 496 509 Total 339 765 1104 1222 3636 4858

2.3.4 Affected Enterprises and Shops

Within the project area, there are 75 enterprises or 2,745 persons to be affected. They belong to three types: state-owned enterprises, private-owned enterprises, and other type enterprises. Of the total affected employees, 1,148 are males and 1,597 females. In total, 34,636 m2 of enterprise buildings will be demolished.

In addition, 7 retail shops will be affected, with 635 m2 to be demolished. The relocation of the shops will affect 26 employees (11 males and 15 females). All of the shops belong to private business owners.

The details of the affected enterprises are presented in Table 2-9 and Table 2-9-1, and the affected shops in Table 2-10. Table 2-11 provides the summary of affected enterprises and shops.

Table 2-9. Affected Enterprises Number of Annual Lost Ownership Acquired No. of Name of Name of Employees Output Land No. Buildings Relocated River Town or Village Value or Area State- (m2) Machinery Private Others Total M F Total Sales (m2) Owned (RMB 104) 1 Baihutin Gaishan, Luozhou 0 12 0 12 101 112 213 4700 1373 2440.3 5 2 Gantou Xiadu 0 0 1 1 35 138 173 0 500 790 0 3 Lianban Chenmen 0 2 0 2 19 8 27 0 200 1210 0 4 Linpu Chenmen 0 2 0 2 35 14 49 105 200 300 8 5 Longjin Xiadu,, Cangshan, Gaishan 0 8 1 9 94 47 141 106 0 4172 12 6 Lulei Chenmen 0 7 0 7 46 35 81 500 6010 2230 6 7 Luochen Chenmen 0 0 0 0 0 0 0 0 0 0 0 8 Luozhou Luozhou 0 5 2 7 72 64 136 786 23127 3822 6 9 Mazhou Gaishan 0 0 0 0 0 0 0 0 0 0 0 10 Pandun Chenmen, Gaishan 0 4 0 4 142 123 265 8700 5100 5100 165 11 Puxia Gaishan 0 9 0 9 23 18 41 0 0 771 0 12 Yixu Gaishan 0 14 0 14 106 62 168 2159 5496 3635 23 13 Yuejin Cangshan, Gaishan 4 2 2 8 475 976 1451 4900 8326 9166 70 Total 4 65 6 75 1148 1597 2745 21956 50332 33636.3 295

10 Table 2-9-1 Details of Affected Enterprises

Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD Baihu- Gai- Yexia 1 Co. 12 12 101 112 213 4700 1 12 1373 453 350.5 1346.8 290 2440.3 874 4 Ting Ri. shang Village

Zhongchengxin Shoes co. 1 11 9 20 500 1 253 253

Zhengxin Plastic Cement Products 1 12 8 20 400 1 200 200 1 Co.

Tongbao Gas Products Co. of 1 7 13 20 500 1 208 20 228 4 4 Fuzhou City

Tianfu Plastic flux Co. 1 6 4 10 500 1 270 270

Yexia Plastic Co. 1 11 18 29 600 1 22.5 22.5 600

Santai ShoesCo. 1 10 10 20 500 1 267 267 4 4

Cangde Clothing Co.of Fuzhou City 1 3 7 10 100 1 317.8 317.8

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD

Shengzhuang Handicraft Article Co. 1 7 12 19 500 1 60 150 210

Jingfa Plastic Co. of Fuzhou City 1 12 8 20 300 1 120 120 120

Zhengwu Plastic Co. 1 8 7 15 300 1 161 161

11 Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD Yexia Handicraft Article Co. of 1 9 11 20 400 1 171 171 Plastic Paint Yexia Guoliang Plastic Co. 1 5 5 10 100 1 100 100 Industry District

Guangtou Gongnong 2 Xiadu Co. 1 1 35 138 173 500 750 40 790 80 15 River Distric

The Second Sport Shoes Co. Of 1 35 138 173 500 750 40 790 80 15 Cash Comp. Fuzhou City

Lianban Cheng Lianban 3 Co. 1 1 4 3 7 200 200 200 River men Village Chenmaojin Pig and Cattle Co. 4 3 7 200 200 200 Huan Cheng shang Co. 1 1 15 5 20 1 1010 1010 men Village Luocheng Weizhongjian Paper Product Co. 15 5 20 1 1010 1010 Industry District Total Co. 0 2 0 2 19 8 27 0 1 0 200 0 1210 0 0 0 0 1210 0 0 0 Linpu Cheng Fulian 4 Co. 1 1 5 4 9 5 100 100 100 River men Village A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD

Wengrongcai Spring Co. 5 4 9 5 100 100 100

Shis Cheng hang Co. 1 1 30 10 40 100 1 200 200 150 800 men Village

12 Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD

Hongming Food Companies 30 10 40 100 1 200 200 150 800

Total Co. 0 2 0 2 35 14 49 105 0 1 200 0 200 100 0 0 0 300 150 800 0 Long Gai Gaohu 5 Co. 3 3 71 24 95 53 1400 1450 2850 jin River shang Village

Gaohu Zhengcongsheng 1 23 7 30 27 500 550 1050 Foundry Co.

Zhengyiqie Foundry Co. 1 25 5 30 16 500 500 1000

hengyuzunFoundry Co. 1 23 12 35 10 400 400 800

Jiang Gai bian Co. 5 1 6 23 23 46 2 4 100 1022 200 1322 55 13 10 shang Village

Huajianag weaving-bag Co. 1 1 8 1 170

Jianbianhou Paper Mill. 1 1 40 290 50 35 13 6

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD

Guanjingyan Household 1 7 10 1 60 250 20 3 Necessities Co.

13 Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD Gaishang Yexia Jieben Founding Co. 1 5 1 150 Industry District

Jianfbian Sawmill 1 4 1 1 150 1

Gaishang Yexia Jieben Plastic Co. 1 6 4 1 162 Industry District

Total Co. 8 1 9 94 47 141 106 2 4 0 0 100 2422 1450 200 0 4172 55 13 10

Long Lulei Cheng 6 Jiang Co. 5 5 31 20 51 500 3850 500 350 1900 1750 20 Ri. men village

Longjiang Building Materials 10 3 13 100 1250 350 350 10 Co.

Longjiang Door Product Co. 8 4 12 100 200 200 400

Longjiang Sawmill 5 3 8 100 1200 500 500

Longjiang Paper Mill. 4 6 10 100 1000 300 1000 1600

Longjiang Paper Product Co. 4 4 8 100 200 400 400

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD Aoli Co. 2 2 15 15 30 2 2160 180 100 200 480 200

14 Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD Village

Linhuoming Boat Mill 10 5 15 1 1100 200

Linqianguan Pig Farm 4 11 15 1 1060 180 100

Total Co. 0 7 0 7 46 35 81 500 2 6010 500 350 1080 0 100 200 2230 220 0 0 Luozhou Luozh Duyuan 8 Co. 3 1 4 57 50 107 688 1 3 8968 100 520 650 1270 1100 8 Ri. ou Village Duyuan Paper Mill Of 1 30 20 50 400 1 6468 480 250 1100 2 Original Luozhou

ChengchuanLong Plastic Co. 1 7 25 32 120 1 1840 400 3 Original

Chengyuanchang Food Co. 1 1 3 4 18 1 130 100 Original

Chnglixian Sand and Stone 1 5 5 150 660 40 3 Farm Zhou- wei Co. 2 2 7 4 11 5500 800 752 1552 Villag

Baozhong Founding Mill 1 5 2 7 1 2000 800 800 Original

A B E F G H I J K L M N O P Q R S T U V W X Y Z AD

Zhouwei Bird farm 1 2 2 4 3500 752 752 Original

Wucuo Co. 1 1 8 10 18 98 8659 800 200 1000 100 500 85 Vilage

15 Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD

Green Color Holiday Villa 1 1 8 10 18 98 8659 800 200 1000 100 500 85

Total Co. 0 5 2 7 72 64 136 786 1 3 23127 0 1700 720 0 1402 3822 100 1600 93 Pandun Cheng Pandun 10 Co. 4 4 142 123265 8700 1 1 5100 2500 1400 840 300 60 5100 930 54 River men Village

Pandang Daily Paper Product 30 18 48 1500 1100 800 300 1100 Co.

Luocheng Tianxiong Machinery Plant 34 10 44 2500 1 2000 1500 60 1560 Investment District

Pandaihui Paper Product Co. 20 5 25 1500 1000 840 840

Panzhendong Shoes Co. 58 90 148 3200 1 1000 1000 600 1600

Puxia Gaish Puxia 11 9 9 23 18 41 9 771 771 1368 40 River ang Village

Liuruihua Lime Plant 1 2 3 1 62

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD

Liuwenhua Plastic Co. 1 2 3 1 48

Liuzengshou Plastic Co. 1 2 3 1 76

16 Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD

Liuzengshou Special Food Co. 1 2 3 1 75

Liuwenhao Lime Storehouse 0 2 3 1 66

Liuwenhao Lime Co. 4 2 6 1 123 Dormitory

Liucanggui Plastic Co. 1 2 3 1 68

Liujinsu Lime Plant 1 2 3 1 75

Liuguanghui Plastic 13 2 15 1 178 Co. Dormitory

Total Co. 0 9 0 9 23 18 41 0 0 9 0 0 0 771 0 0 0 771 0 1368 40 Yixu Gaish Pukon 12 Co. 8 8 31 20 51 74 7 2500 150 350 1150 600 2250 River ang Village

Huangwenqi Rice-noodle Co. 5 2 7 9 1 400 50 200 Original

50 Huanglijin Lime Plant 3 3 6 8 1 300 300 Original

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD 50 Linqiudi Lime Plamt 2 2 4 9 1 250 300 Original

17 Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD 50 Huangzhaorui Lime Plant 2 2 4 8 1 100 300 Original

50 Huangchunlong Stock Farm 4 2 6 20 250 250

Huangbaoxiang Rice-noodle 5 3 8 8 1 300 150 Original Co.

Yexia Huangjianping Plastic Co. 5 3 8 5 1 600 100 200 Industry District

Huangjianxi Rice-noodle Co. 5 3 8 7 1 250 200 Original

Zhon Gaish gtng 1 1 15 5 20 30 120 120 120 60 ang Village Zhongting Village Shoes Co. 1 15 5 20 30 120 120 120 60 Bantian Co. 5 5 60 37 97 2055 2876 1265 1265 600 24 Village

Baintian Plastic Co. 18 13 31 500 1500 350 350 180 15

Bantian Metal Product Co. 25 8 33 860 600 430 430 150 2

Bantian Weijie Plastic Co. 8 7 15 480 350 220 220 100 5

Nengqiu Plastic Co. 6 6 12 180 220 150 150 90 2

18 Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD

Wenzhao Rice-noodle Co. 3 3 6 35 206 115 115 80 0

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD Total Co. 0 14 0 14 106 62 168 2159 7 0 5496 0 270 1615 0 1150 600 3635 60 600 24 Yuejin Cangs Zhengan 13 Co. 3 3 100 115 215 1200 2 1 5920 2300 2300 1320 120 720 6760 209 113 River hang Village Jinshang Jiafu Paper Product Co. 30 70 100 1 2300 2300 2300 50 107 Industry District Jinshang HongshengPaper Box Co. 35 40 75 1 2400 2300 120 2420 70 3 Industry District

Huayouda Floor Board Co. 35 5 40 1 1220 1320 720 2040 89 3

Cangs Xiahu 2 2 28 15 43 300 2 920 120 800 920 165 hang Village

Xiahu Plain Co. 10 3 13 180 1 500 120 380 500 80 Nearby

Xiahu China Co. 18 12 30 120 1 420 420 420 85 Nearby

Gaish Beiyuan 1 2 3 347 8641211 3400 1486 1200 286 1486 645 10392 185 ang Village

Ganyou DailyNecessities Co. 1 115 400 515 1100 500 300

Xinshidai Stationary Co. 1 135 459 594 1200 480 400 286

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD Wangyuyin Founding Copper 1 107 5 112 1000 506 500 Co. 9166 Total Co. 4 2 2 8 475 9761451 4900 4 1 8326 3500 2706 2120 120 720 1019 10392 298

19 Annual Name Name output Nameof Name of Number of Land Resettlemnet No of of owership value Affected level Quqntity & relocated houses Auxiliary structure river Village employee area place town Co. or sales Parti- Fully Concr- Retai- Stat all Fram- Brick- Mud- simple- privte others sutotal male female total Reloca Ete- wood total ning groud tree e-owned Reloc- ed wood wood houses ted brick wall ated RMB 104 M2 M2 M2 M2 M2 M2 M2 M2 m M2 piece A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AD

Total Co. 4 65 6 75 1148 1597 2745 21956 17 33 50332 6953 82865 117648 1870 3962 800 33636.3 3264 15658 523

20

Table 2-10. Details of Affected Shops Number of Annual Ownership Land Acquired No. of No. Name of Name of Employees Output Value or Area Buildings Relocated River Town State- 2 2 Private Others Total M F Total Sales (M ) (M ) Machinery Owned (RMB 104) 1 Baihutin Gaishan, Luozhou 0 0 0 0 0 0 0 0 0 0 0 2 Gantou Xiadu 0 0 0 0 0 0 0 0 0 0 0 3 Lianban Chenmen 0 1 0 1 4 5 9 0 275 275 0 4 Linpu Chenmen 0 0 0 0 0 0 0 0 0 0 0 5 Longjin Xiadu, Cangshan, Gaishan 0 3 0 3 4 5 9 134 130 130 0 6 Lulei Chenmen 0 0 0 0 0 0 0 0 0 0 0 7 Luochen Chenmen 0 0 0 0 0 0 0 0 0 0 0 8 Luozhou Luozhou 0 1 0 1 1 3 4 18 130 100 0 9 Mazhou Gaishan 0 1 0 1 1 1 2 1 30 30 0 10 Pandun Chenmen, Gaishan 0 0 0 0 0 0 0 0 0 0 0 11 Puxia Gaishan 0 0 0 0 0 0 0 0 0 0 0 12 Yixu Gaishan 0 0 0 0 0 0 0 0 0 0 0 13 Yuejin Cangshan, Gaishan 0 1 0 1 1 1 2 0 0 100 0 Total 0 7 0 7 11 15 26 153 565 635 0

Table 2-11 Summary of Affected Enterprises and Shops Number of Affected Enterprises and Stores No. Name of River Enterprises Stores 1 Baihutin River 12 0 2 Gantou River 1 0 3 Lianban River 2 1 4 Linpu River, 2 0 5 Longjin River 9 3 6 Lulei River 7 0 7 Luochen River 0 0 8 Luozhou River 7 1 9 Mazhou River, 0 1 10 Pandun River 4 0 11 Puxia river 9 0 12 Yixu River 14 0 13 Yuejin River 8 1 Total 75 7

2.3.5 Number of Affected Households and Population

The Project will impact on 43 villages due to house demolition. It will affect 1,104 residential households or 4,858 persons. Thirty-two (32) villages will be affected by permanent land acquisition, which will affect 661 households or 3,583 persons. In addition, 75 enterprises and 7 shops will be affected, totaling 2,771 employees; however, only 17 enterprises need to be relocated, which affects 362 employees (see Table 2-12 for the number of households and population, and enterprises and shops affected by LAR). Total affected persons, including both residential and non-residential will be 11,224 persons.

Table 2-12. Number of Households and Population, and Enterprises and Shops Affected by LAR People Affected by Affected Affected Affected House Demolition Permanent Land Companies No. Name of River Towns Villages Villages Acquisition and Stores (no.) (no.) Families People Families People Companies Stores Gaishan 3 3 12 1 Baihutin River 152 776 151 715 Luozhou 3 3

21 People Affected by Affected Affected Affected House Demolition Permanent Land Companies No. Name of River Towns Villages Villages Acquisition and Stores (no.) (no.) Families People Families People Companies Stores 2 Gantou River Xiadu Street 2 210 682 1 3 Lianban River Chenmen 2 44 269 2 60 378 2 1 4 Linpu River Chenmen 3 56 315 3 85 254 2 Xiadu Street 3 5 Longjin River Cangshan 2 249 906 3 9 3 54 347 Gaishan 2 1 6 Lulei River Chenmen 3 35 385 2 13 694 7 7 Luochen River Chenmen 1 46 228 0 0 0 8 Luozhou River Luozhou 3 21 98 1 3 13 7 1 9 Mazhou River Gaishan 4 64 299 5 122 453 0 1 Chenmen 1 1 4 10 Pandun River 37 158 29 120 Gaishan 1 1 11 Puxia river Gaishan 1 54 135 1 4 15 9 12 Yixu River Cangshan 4 50 202 1 97 328 14 Cangshan 4 4 13 Yuejin River 86 405 43 266 8 1 Gaishan 1 1 Total 43 1,104 4,858 32 661 3,583 75 7

2.3.6. Affected Public Facilities

The Project will affect 10,020 m2 of public buildings, including 665 m2 of hospitals/clinics, 540 m2 schools, and 8,815 m2 of office administration and public activity buildings, which are owned by the collectives. Table 2-13 provides the details of the impacts by village, township and river.

Table 2-13. Affected Public Buildings by Village, Township and River Public Buildings Name of Name of Name of Hospitals No. Schools Village & Township Administration Office and River Town Village (Clinics) (m2) Public Activity Buildings (m2) (m2) Baihu 396 Gaishan Guozhai 110 Baihutin Aoshan 1 Luozhou Qianyuan 300 Tianfu 800 Subtotal 0 0 1,606 Gantou Xiadu Gantou 2 Subtotal 0 0 0 Lianban 180 Lianban Chenmen 3 Huanshan 479 Subtotal 180 0 479 Fulian Linpu Chenmen Lianjiang 115 4 Shishang 540 Subtotal 0 0 655 Gonnong Xiadu Xiaten Xianfeng 105 468 Longjin Cangshan 5 Cangshan Wanli 240 36 Gaishan Jiangbian 380 300 1,500 Subtotal 485 540 2,004 Luochen Chenmen Chenmen 2,680 6 Subtotal 0 0 2,680 Duyuan Luozhou Luozhou 7 Zhouwei 150 Subtotal 150 Xiaqi Mazhou Gaishan 8 Tianshui 276 Subtotal 0 0 276 9 Pandun Chenmen Pandun 445

22 Public Buildings Name of Name of Name of Hospitals No. Schools Village & Township Administration Office and River Town Village (Clinics) (m2) Public Activity Buildings (m2) (m2) Subtotal 0 0 445 Puxia Gaishan Puxia 10 Subtotal Zhulan Yixu Gaishan 11 Bantian Subtotal Xiannong Hubian Yuejin Cangshan Zhen’an 12 Xiahu 520 Beiyuan Subtotal 520 Total 665 540 8,815

23

2.3.7 Infrastructures and Special Facilities

The Project will affect a range of infrastructures and special facilities, which include 200 m2 agricultural products market, 16.7 km roads, and 46 bridges. The affected special facilities include: 96 street lighting poles, 5.25 km of high voltage line, 7.5 km of low voltage line, 2.64 km of communication line, 2.2 km of fiber optic cable, 14 transformers, 7,940 m of water pipe, 4,776 m of cable TV line, 4 wells, 567 public toilets, 265 m2 of bicycle booth, 133 m2 of electric machine room, 39 water pumps, 100 m2 of pump house, and 830 m2 of temples (see Table 2-14 for details).

24 Table 2-14. Details of Affected Infrastructures and Special Facilities Public Facilities & Infrastructures High Low Commu- Fibre Cable Electric Name of Name of Name of Agri.Products Road Transfor Water Public Bicycle Water Pump No. Roads Bridges Voltage Voltage nication Optic TV Well Machine Temple River Town Village Market Lighting -mer Pipeline Toilet Booth Pump House (km) (no) Line Line Line Cable Line no. Room m2 m2 Pole (no) No. m m2 m2 no. m2 (km) (km) (km) (km) m m2 Baihu 1.6 3 15 0.5 2 4 1,750 830 80 Gaishan Guozhai 47 35 80 Baihutin Aoshan 500 1 Luozhou Qianyuan 250 Tianfu 2 1 50 1 Subtotal 0 3.6 4 15 0.5 2 41,800 830 0 128 0 0 35 Gantou Xiadu Gantou 3 79.8 85.2 2 Subtotal 0 0 0 3 0 0 0 0 0 0 79.8 85.2 0 0 Lianban 200 Lianban Chenmen 3 Huanshan 0.71 2 1 100 Subtotal 200 0.71 2 0 0 0 1 0 0 0 0 0 0 0 Fulian 1.5 7 1 1 0.5 1,000 1,000 150 Linpu Chenmen Lianjiang 1 1 16 1 1 500 1,000 2 30 4 Shishang 2 Subtotal 0 2.5 3 23 1 2 01,500 2,000 2 30 150 0 0 Gonnong 0.15 3 7 0.15 0.44 1 10 146 Xiadu Xiaten 6 35 Xianfeng 0.03 1 1 40 52.8 Longjin Cangshan 5 Cangshan 0.15 1 3 70 100 Wanli 1 2 40 2 Gaishan Jiangbian 0.3 3 Subtotal 0 0.63 15 10 2.15 0 2 80 246 0 75 0 92.8 2 Luochen Chenmen Chenmen 3.52 2 6 Subtotal 0 3.52 2 0 0 0 0 0 0 0 0 0 0 0 Duyuan 1 Luozhou Luozhou 7 Zhouwei Subtotal Xiaqi 0.1 0.1 40 2 Mazhou Gaishan 8 Tianshui 0.5 1 10 0.2 0.2 0.2 1 1,500 1,500 Subtotal 0 0.5 1 10 0 0.3 11,500 1,500 40 2 Pandun Chenmen Pandun 1 8 0.5 0.5 1 1,000 35.7 9 Subtotal 0 1 8 0 0.5 0.5 11,000 0 0 35.7 Puxia Gaishan Puxia 0.8 2 8 0.2 1 120 10 Subtotal 0.8 2 8 0 0.2 1 120 Zhulan 1 8 1 53 Yixu Gaishan 11 Bantian 30 5 Subtotal 1 0 8 1 30 58 12 Yuejin Cangshan Xiannong 0.2 3 0.5 1.1 0.2 300 100 Hubian Zhen’an 0.15 1 7 0.1 1 310 2 30 Xiahu 2 2 12 0.3 2 2 1,000 160

25 Public Facilities & Infrastructures High Low Commu- Fibre Cable Electric Name of Name of Name of Agri.Products Road Transfor Water Public Bicycle Water Pump No. Roads Bridges Voltage Voltage nication Optic TV Well Machine Temple River Town Village Market Lighting -mer Pipeline Toilet Booth Pump House (km) (no) Line Line Line Cable Line no. Room m2 m2 Pole (no) No. m m2 m2 no. m2 (km) (km) (km) (km) m m2 Beiyuan 0.1 3 0.5 1.1 0.2 300 100 Subtotal 0 2.45 9 19 1.1 2.5 0.4 2 3 1,910 200 2 160 30 Total 200 16.7 46 96 5.25 7.5 2.64 2.2 14 7,940 4,776 4 567 265 133 39 100 830

26 2.3.8 Impact on Historical Relics and Mineral Resources

The investigation indicates that there are no historic relics and mineral resources in the project-affected area, thus no impacts are expected on cultural heritage and mineral resources.

2.3.9 Vulnerable Groups

Based on field investigation, 13 households have been identified as poor households, and 67 households are tenants (floating population), and 461 households have no legal house certificates.

2.4 Impact Analysis

2.4.1 Impacts on Agriculture

Even though there are 1,106.8 mu land areas to be acquired by the project, including 1024 mu or 93 percent of farmland, due to the nature of acquisition (10 meters of narrow strip), they are scattered among 661 households and 32 villages in 4 townships. In average, each village will lose 32 mu (2.1 ha) of farmland, and each affected person would lose 0.1 mu , which will not pose any significant impact on the income and livelihood for the affected people and affected villages. This is particularly true given the relatively small share of agricultural income in the project areas. In 2002, among four affected townships, agricultural income accounted for only 0.9 to 2.2 percent of gross output value; while industrial output accounted for 78 to 90 percent of gross output value.

2.4.2. Impacts on Building Demolition

More significant impacts seem to be on demolition of buildings, which include demolition of residential structures and demolition of non-residential structures. For residential house demolition, it will involve demolishing 191,081 square meters and relocating 1,104 households and 4,858 persons, which will involve 43 villages. Among them, 765 households are rural residents and 339 households are urban residents. Given the fact that the project areas are basically urbanized, there is little differentiation among them. They will be entitled to the same compensation rates and same rehabilitation options. Of total relocated households, 643 of them have full property rights, and 463 households have partial or no property rights. However, both groups will be provided with same compensation and rehabilitation packages.

For non-residential demolition, it will involve demolishing 34,271 square meters, which will affect 75 enterprises and 7 small shops with 2,771 employees. While all 7 affected shops with 635 square meters will be relocated, for affected enterprises, based on detailed survey, only 17 enterprises need to be relocated due to significant loss of floor spaces. Among them, 2 are state owned enterprises and 15 are privately owned enterprises. There are 362 employees and 10,972 square meters among these 17 enterprises. Both relocated shops and enterprises will be provided with adequate compensation and rehabilitation options. For the remaining 58

27 affected enterprises with 2,383 employees, due to limited impact, all of them will be able to continue operating their business after readjusting or rebuilding the affected structures.

28 Chapter 3 Legal Framework and Policies

3.1 Summary of Chinese Laws and Regulations

3.1.1 Land Administration Law of the PRC (1998)

The Land Administration Law of the PRC (1998) stipulates that:

z Land in urban areas of cities belongs to the state. Except for the land owned by the state according to the law, land in rural areas and outskirts of cities is collectively owned by the farmers. Homesteads are collectively owned by the farmers.

z For land acquisition, compensation should be made according to the original use of the land acquired.

z The compensation rate for farmland acquisition includes land compensation fee, resettlement subsidy, and compensation fee for loss of standing crops.

z The land compensation fee for farmland acquisition is six to ten times the average agricultural output value (AAOV) of the last three years before the acquisition.

z The resettlement subsidy for farmland acquisition is calculated on the basis of the agricultural population that needs to be resettled. The agricultural population that needs to be resettled is calculated by dividing the amount of farmland acquisition by the average per-capita allocation of the farmland of the community before the acquisition.

z The resettlement subsidy of every agricultural population that needs to be resettled is four to six times the average agricultural output value (AAOV) of the last three years before the acquisition.

z The land compensation fee and resettlement subsidy of other land acquisition are regulated by provincial governments, with reference to land compensation fee and resettlement subsidy of farmland acquisition.

z The compensation standard for loss of the attachments and standing crops on the land acquired is regulated by governments of provinces, autonomous regions and municipalities directly under the Central Government.

3.1.2 Implementing Regulations of the Land Administration Law

It is stated in the Order 256 of the State Council of the People’s Republic of China issued on December 27, 1998 that:

29 z Use of state-owned land by the construction unit should be acquired by compensable means such as transfer. However, land of municipal infrastructures and public welfare construction can be acquired by financial appropriation upon approval of the people’s governments above the county level. z The construction unit that has acquired state-owned land by compensable means such as transfer can only start using the land after payment of compensable land acquisition fees such as the land use right transfer fees and other related fees according to the standards regulated by the State Council. z Thirty percent (30%) of the land compensation fees for new construction shall be submitted to the central finance and 70% is reserved for the local people’s government for the development of farmland.

3.1.3 Urban Housing and Resettlement Management Regulations

The Urban Housing and Resettlement Management Regulations of the People’s Republic of China was approved by the fortieth regular meeting of the State Council on June 6, 2001, and came into effect on November 1, 2001. The compensation for demolition and resettlement will follow the above regulations. The major provisions of the regulations are:

Article 22: The demolition unit should give the tenants compensation according to these regulations. There is no compensation for demolishing illegal building and temporary buildings that exceed the approved period.

Article 23: Resettlement compensation can be paid out in cash, or by exchange of property rights. The resettlers can choose between the two compensation options.

Article 24: The amount of cash compensation shall be determined on the basis of the assessment of the real estate market, in reference to the location, purpose of use, construction area and other factors.

Article 25: If the property exchange option is chosen, the acquiring unit and the property owner shall calculate the price of the demolished building and the price of the exchange building in accordance with Article 24, and settle any price difference.

Article 28: The acquiring unit shall provide the exchange building for resettlement according to national quality and safety standards.

Article 31: The acquiring unit shall pay a resettlement allowance to the owner of the building or its tenants.

• During the transition period, if the owner or tenants arrange living places by

30 themselves, the acquiring unit should pay them an allowance for their temporary transition. If the owner and tenants use temporary accommodation provided by the acquiring unit, no temporary transition allowance is necessary.

• The standard of the resettlement allowance and temporary settlement allowance will be regulated by the people’s government of the province, autonomous region or in municipality directly under the Central Government.

• If the demolition extends the transition period for which the acquiring unit is accountable, the acquiring unit shall increase the allowance to the owner or tenants by the months delayed. For those who use the transition building, the acquiring unit shall give a temporary settlement allowance by the months delayed.

Article 33: The acquiring unit shall compensate for production stoppage and business disturbance to any non-residential building.

3.1.4 Urban Housing Compensation Policy and Resettlement Standard in Fujian and Fuzhou

Fujian Regulation

It is regulated in Article 4 of the Fujian Provincial Urban Housing Resettlement Management Regulations issued on September 27th, 2002 that: “The compensation of demolition can take the forms of monetary compensation or exchange of the property rights of the houses, in which monetary compensation is encouraged.”

It is regulated in Article 17 that: “For monetary compensation of the demolition of houses, the compensation amount can be decided through negotiation of both sides concerned. In case the negotiation fails, the demolition agency should entrust the real estate price appraisal agency and negotiate the monetary compensation rates based on the appraised price.

For the exchange of the property rights during the demolition of houses, the demolition agency and the affected people should calculate the compensation rates for the demolished house and the price of the exchanged house, and settle the price difference caused by exchange of the property rights accordingly.”

Article 25: “For demolition of the houses that have no property rights certificate, the whereabouts of the owners of the title is unknown, or the property rights of which cannot be defined temporarily, the demolition agency should work out the compensation and resettlement plan and implement the demolition upon approval of the house demolition management department. Before the demolition, the demolition agency should conduct the evidence preservation concerning the demolished houses in the notary office.”

31 Article 26: “The demolition agency should pay the affected people or tenants of the houses the relocation subsidy. For the exchange of property rights of the houses, the demolition agency should pay double the relocation subsidy.”1

Article 29: “For the prolonged transitional period due to the demolition agency’s responsibility, the demolition agency should pay double the temporary resettlement subsidy to the affected people or tenants of the houses that have arranged residence by their own since the first prolonged month; and pay the temporary resettlement subsidy to the users of the transitional residence. Other engagements of the interested parties concerning the transitional period and temporary resettlement subsidy should be followed.”2

Article 30: “For the termination of production or business caused by demolition of non-residential houses, besides the compensation for the operators with consideration of the termination period of production or business, the staff number registered in the social security agency by the operators, and the average staff’s salary of the previous year published by the local government where the demolished houses are located, the demolition agency should also pay lump-sum economic compensation based on the termination period of production or business and the average monthly after-tax profit of the operators in the previous year.”

Fuzhou Regulation

It is regulated in Article 4 of the Fuzhou Municipal Urban Housing Resettlement Management Regulations issued on August 9th, 2000 that: “The demolition of urban houses should be in accordance with the municipal planning and be beneficial for the rehabilitation of the old districts of the city.”

Article 6: “The demolition of houses takes the forms of monetary resettlement or lump-sum house resettlement, in which the monetary resettlement is encouraged. The forms of resettlement of the houses are chosen by the affected people after negotiation by both sides with consideration of the affected people’s will and the funds and housing conditions of the demolition agency.”

Article 20: “The calculation formula of the monetary resettlement rates is: monetary resettlement rates = basic price of the average private houses in different sections of the demolished plot x floorage of the demolished house - the price difference paid by the affected people.3

1 By taking into consideration of temporary housing situation, double relocation subsidy should be compensated. 2 Temporary housing will be avoided as much as possible by the IA for the Project. 3 The calculation formula could also be interpreted as: monetary resettlement rates = land price + replacement value (including materials, equipments and labour costs) of different structures; or monetary resettlement rates = basic price of the average private houses in different sections of the demolished plot (including current value of land in the specific section and location, plus material, equipment and labour cost) – original house value of APs + replacement value of different structure.

32 The basic price of the ordinary commercial houses in different sections of the demolished plot is appraised by the municipal people’s government and published at the end of the first quarter every year.”

Article 27: “For demolition of residential houses, resettlement should be based on the original floorage and be conducted according to the following regulations: z Count the households based on the property right certificates and legal leasing evidence of the demolished houses. z The floor space of the standard house types are 45, 60, 75, 90, 105 m2. The floorage which is more than 105 m2 can be resettled according to different house types. z The standard resettled house types should be in accordance with the national construction standard. z After increasing resettled area within the range appraised by the municipal people’s government with reference to different levels of the demolished sections, the lump-sum resettlement should be carried out in the standard types of houses nearby. z After settlement of the standard house type, if the actual increased floorage of the affected people is less than 7 m2, the resettlement can be carried out in the house type one level higher.”

Article 28: “For the demolition of leased residential house, if the property owner demands an exchange of the property rights, the original leasing relations should be maintained, not including the case which is not maintained according to the contract though. If the property owner doesn’t demand for the exchange of the property rights or monetary resettlement, the demolition agency should resettle the tenant4 and compensate the property right owner.”

Article 29: For demolition of houses for commercial use, the resettlement should be carried out according to the following regulations: z For demolition of houses of commercial or service industries, normally lump-sum payment compensation amount is negotiated and the new-building area, if increased, should be within the regulated range. However, if the demolition agency is to construct houses for commercial use, and the functions, layout and structure, and the contents and level of the business all suit the affected people, the demolition agency should resettle the affected people on the spot. z For the resettlement of houses for commercial use, the resettled people should follow the construction layout and business property of the resettled house. z For the resettlement in open house for commercial use, if the floorage of the house for commercial use to be resettled is less than 20 m2, monetary resettlement should be chosen, not including the case in which the resettled people would accept the compensation of the area by the commercial house price though.

4 New housing arrangement will be provided for the tenants by the Fuzhou House Demolishment Engineering Office.

33 z Those who have changed the houses for non-commercial use to commercial use without approval of the municipal urban planning management bureau and identification of the municipal real estate management bureau cannot be resettled in houses for commercial use.”5

For demolition of non-residential and non-commercial house, the demolition agency should carry out the resettlement based on the function of the original house and the floor space of the resettled area.

Article 34: The resettled houses are appraised according to the following regulations:

Item One: For the exchange of property rights, the same floorage and the floorage that needs to be increased in lump-sum resettlement are appraised based on the construction and installation cost of the resettled house; floorage increased by resettlement in the standard type of house nearby is calculated based on 80% of the cost price; floorage increased by the resettlement in the house type one level higher is calculated based on the cost price; floorage increased by distribution of house types and other reasons is calculated based on the commercial house price.

Item Two: Under the condition the property right belongs to the same person, the person does not require exchange of property rights and monetary resettlement but requires to rent the resettled houses or the tenants of public houses will continue renting the resettled houses, distribution cost is not charged for the same floorage and the floorage to be increased in lump-sum resettlement; distribution cost is charged for other floorage as 25% of the construction and installation cost of the resettled houses. For owners of private houses and tenants of private houses that do not carry out exchange of property rights, distribution cost is charged for the same floorage and the floorage to be increased in lump-sum resettlement as 15% of the construction and installation cost of the resettled houses and 25% for other floorage.

Item Three: For non-residential houses compensated by exchange of property rights, the part of the compensated floorage that is the same as the floorage to be resettled is compensated by the price difference due to different structures based on the revised price; the part of the compensated floorage that is larger than the floorage to be resettled is compensated based on the prices of commercial houses.

Regulations on Implementation of “the Fuzhou Municipal Housing Resettlement Management regulations” issued by Fuzhou Municipal People’s Government on June 30th, 2000:

Article Seven: After identification of the resettled scope, the administrative unit of the

5 No such households have been identified in the affected area.

34 demolition is to inform related parties of suspending transaction of procedures such as commercial and industrial registration, examination and approval of construction of houses, real estate transaction, changes of property right, residence immigration and household separation, etc., and inform the management unit of the property rights of houses of the examination of property rights of houses within the resettled scope. The management unit of the property rights of houses should provide the examination certification of the property rights of related house within the period limited by the administrative unit of the demolition. The suspension of transactions of related procedures should be carried out within six months since the notification of the administrative unit of the demolition. The suspension is automatically terminated after six months if there is no special notice. The procedures transacted during the suspension period are not regarded as basis of compensation for the resettlement.

Article Thirteen: For the resettlement of the affected people, households should be counted based on the property rights certificates or legal leasing or borrowing certificates of the demolished houses.6

Article Fifteen: Demolition of houses can be compensated by cash. The compensation rates can be appraised based on different plots and sections, and structures and ages of the demolished houses.

Article Seventeen: The resettled houses mentioned in Item One of Article Seventeen of the Regulations means that every set of the resettled house should have separate bedrooms, living room, kitchen, toilet and balcony (the area for use: the kitchen is not smaller than 4.5 m2, the toilet is not smaller than 2 m2, the living room is not smaller than 8 m2, and the balcony is not smaller than 3 m2). Storage houses and public parking lots are not included in the area for property rights exchange.

Article Nineteen: For resettlement within the same area, the part of the floorage of the resettled house which is the same as the floorage of the original house is appraised based on the construction and installation costs of the resettled house.

Article Twenty-Four: For demolition of rented or lent private houses or houses taken care by units, if the property right owners require for exchange of property rights (or not), the exchange of property rights should be (or not be) carried out based on the total original rented or lent floorage (including distribution of public floorage on certain scale)7.

Article Twenty-Seven: The rented and lent houses regulated by Item Two of Article Nineteen of the Regulations refer to houses for private commercial and industrial operation rented or lent by private houses or houses taken care by units.

6 For those without property rights certificates or legal leasing or borrowing certificates of the demolished houses, cash compensation will be provided. 7 The original housing status will be maintained after house demolishment.

35

Those who change houses for non-commercial use to commercial use without approval of the planning agency and identification of the housing management department, and have the property rights and valid commercial and industrial operation licenses, should be treated differently based on the following situation during the resettlement. z Those who changed the first non-commercial room on the first floor next to the street for commercial use without approval of the planning agency and identification of the housing management department and held valid commercial and industrial operation licenses before the Municipal Planning Regulations of the State Council took effect on January 5th, 1984, can be resettled and compensated as houses for commercial use. For those who are resettled on the same spot or nearby, the resettled price is calculated by RMB 2,000/m2 and RMB 1,200/m2 for resettlement in other areas. Other area of the houses are resettled and compensated as residential houses. z Those who changed the first non-commercial room on the first floor next to the street for commercial use without approval of the planning agency and identification of the housing management department and held valid commercial and industrial operation licenses before the Methods of Implementation of the Municipal Planning Regulations of Fujian Province took effect during January 5th, 1984 to July 13th, 1991, can be resettled as houses for commercial use. The resettled prices are calculated as 80% of the commercial prices of houses for commercial use in different plots and sections. Other area of the houses are resettled and compensated as residential houses. z Those who changed non-commercial houses for commercial use without approval of the planning agency and identification of the housing management department after termination of the Methods of Implementation of the Municipal Planning Regulations of Fujian Province since July 13th, 1991, no matter they held valid commercial and industrial operation licenses or not, are all resettled and compensated as residential houses. However, they can preferentially purchase houses for commercial use by the commercial price of houses for commercial use according to the resettlement regulations.

Article Thirty-One: The affected people that used illegal structures will not be compensated and not resettled in principle. However, those who had residential difficulty and used the illegal structures as bedrooms should be properly resettled.

Article Thirty-Four: For the termination of production or business caused by demolition of houses, during the termination period of production or business, the demolition agency should provide subsidy based on the average monthly standard of the basic salaries and price subsidies of the registered staff of the resettled unit (including registered staff) six months before the resettlement notice is published. The administrative unit should deduct the production target or change or terminate contracts. The reduction of profits during the termination period of production and business should be compensated.

36 Under the situation that the registered staff can not be identified, the compensation is made according to the following standards with approval of the administrative unit of the resettlement.

For the termination of production or business of state-owned or collectively-owned units, staff are calculated based on the standard of one person per 20 m2 floorage of houses for commercial use and every person is paid a subsidy of 300 RMB/month for termination of production or business. For individuals registered in the commercial and industrial unit, the staff is calculated based on the standard of one person per 10 m2 floorage of houses for commercial use and every person is paid a subsidy of RMB 300/month for termination of production or business.

Article Thirty-Five: The relocation subsidy standard is RMB 300 for per household that has less then 4 people and RMB 400 for per household that has more than 5 people. For households that are relocated for the second time, the relocation subsidy should be doubled. If the floorage of the house for commercial use is less than 50 m2, a lump-sum subsidy of RMB 400 is provided; if the floorage is more than 50 m2, a lump-sum subsidy of RMB 800 is provided.

3.2 ADB’s Resettlement Policy and Social Protection Strategy

3.2.1 Involuntary Resettlement Policy of ADB

The Asian Development Bank set out its official requirements in the Involuntary Resettlement Policy adopted in 1995. The Bank’s policy on involuntary resettlement is aimed to: (i) avoid involuntary resettlement wherever feasible; and (ii) minimize resettlement where population displacement is unavoidable, and ensure that displaced people receive assistance, preferably under the project, so that they would be at least as well-off as they would have been in the absence of the project. Appropriate land, housing, infrastructure, and other compensation, comparable to the without project situation, should be provided to the adversely affected population, including indigenous groups, ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources taken for the project.

In the ADB policy, three important elements of involuntary resettlement are recognized: (i) compensation for lost assets and loss of livelihood and income; (ii) assistance for relocation including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. Resettlers should be provided sufficient resources and opportunities to re-establish their homes and livelihoods as soon as possible. The affected people should be fully informed and closely consulted on resettlement and compensation options. Where adversely affected people are particularly vulnerable, resettlement and compensation decisions should be preceded by a social preparation phase to build up the capacity of the vulnerable people to deal with the issues.

37

It is further stipulated in the ADB policy that any involuntary resettlement should, as far as possible, be conceived and executed as a part of a development project or program. It should form an integral part of project design and should be dealt with from the earliest stages of the project cycle. Resettlement plans should be prepared with appropriate time-bound actions and budgets. The full costs of resettlement and compensation, including the costs of social preparation and livelihood programs as well as incremental benefits over the “without project” situation, should be included in the presentation of project costs and benefits.

The ADB policy calls for the preparation of a detailed resettlement plan with time-bound actions specified and a budget. Resettlement plans should be built around a development strategy; and compensation, resettlement and rehabilitation packages should be designed to generally improve or at least restore the social and economic base of those affected. Monetary compensation for land alone may not be adequate. If suitable land is unavailable, other strategies built around opportunities for wage employment or self-employment may be used.

According to the ADB policy, the contents and level of detail of a resettlement plan, especially the magnitude of resettlement, should normally include a statement of objectives, policies and strategy, and should cover the following essential elements: (i) organizational responsibilities; (ii) community participation and integration with host population; (iii) socioeconomic survey; (iv) legal framework, including mechanisms for resolution of conflicts and appeals procedures; (v) identification of alternative sites and selection; (vi) valuation of and compensation for lost assets; (vii) land ownership, tenure, acquisition and transfer; (viii) access to training, employment and credit; (ix) shelter, infrastructure and social services; (x) environmental protection and management; and (xi) implementation schedule, monitoring and evaluation.

The ADB policy also requires that cost estimates should be prepared for these activities; they should be budgeted; and implementation of the activities should be scheduled with time-bound actions in coordination with the civil works for the main investment project. Throughout resettlement planning, the ADB Policy also requires consultation and disclosure of RPs with the APs, and encourages participation of APs in implementation.

3.2.2 ADB’s Social Protection Strategy

To facilitate the protection for vulnerable groups, ADB’s Social Protection Strategy has been developed which includes five basic components:

• labor market policies and programs designed to generate employment, improve working conditions and promote the efficient operation of labor markets. • social insurance programs to cushion the risks associated with unemployment, ill health, disability, work-related injury and old age.

38 • social assistance and welfare service programs for the most vulnerable groups with no other means of adequate support, including single mothers, the homeless, or physically or mentally challenged people. • micro and area-based schemes to address vulnerability at the community level, including micro-insurance, agricultural insurance, social funds and programs to manage natural disasters. • child protection to ensure the healthy and productive development of children

Under the ADB’s Social Protection Strategy, any workers to be affected by projects will require retrenchment plan for workers from relocated enterprises/businesses.

3.3 Difference between Chinese Laws and ADB Policies

3.3.1 Resettlement Compensation

The related laws can meet the need of compensation for resettlement but the degree of transparency during the implementation of these laws is not high enough. On the other hand, due to various reasons such as the resettlement funds, etc., the compensation standards regulated by related laws and regulations may be lowered during the implementation. In order to avoid the case in which the affected people’s life quality is worsened, enough resettlement cost in the compensation rates is an important security measure. Therefore, it is important that the administrative agencies meet the requirements of ADB. Sufficient public participation throughout the resettlement process and strengthening the public awareness campaign will be implemented, in particular in the areas of resettlement policies, compensation standards, entitlement and grievance. On the other hand, the internal and external monitoring should be strengthened.

3.3.2 Lack of Rights

According to the Chinese laws and regulations, the affected people who have no local registration (“floating population”) will not have the same rights as provided for local inhabitants (such as provision of new residential land, land exchange, water supply, education, health care and unemployment insurance concerning social service, etc.).

The existing Chinese Laws do not compensate for the acquisition of houses and land from the illegal occupations. However, according to the ADB regulations, all demolished structures, no matter they are legal or illegal, are all compensated on the same basis. For this project, all legal and illegal affected persons, irrespective of title and tenure rights, will be protected, including “floating population”. Compensation will be made on the same basis according to the ADB requirements.

3.3.3 Vulnerable Groups

For some people whose social status is fairly low, the compensation may not improve the

39 living conditions of these households but even worsen their poverty. The compensation standard for those people will be raised. Moreover, special attentions and measures should be taken to help them restore the living standard and social and economic conditions. The measures include a total of RMB 2,000/household to be provided as additional financial assistance besides the provided resettlement compensation. In addition, the government economy rental houses will be provided if needed, as well as the provision of the loan for house purchase from the municipal housing sponsor agency.

3.3.4 Temporary Housing

The common practice is to move to temporary housing. For any illegal structure, ADB policy is to minimize transition and ensure people move to a legal structure. In order to avoid the use of temporary housing, advance notice of three months will be put in place; and payment will not be made until new house is registered or bonus payment made to APs for moving by deadline.

3.4 Principles of Resettlement

According to laws, regulations of the Chinese Government and policies of ADB, the compensation and entitlement principles of the project are as follows: z Provide fair compensation and entitlement for the affected people, so as at least improve their living standards before the resettlement or at least to maintain them. z Minimize temporary land acquisition and affected period. z All legal and illegal affected people should be taken into consideration. z The APs should have sufficient land to maintain their living standards after land acquisition. z If the average land holding of APs per capita is not sufficient to maintain their living standards, other income generation opportunities should be provided to them. z Inform all affected people of related qualifying conditions, compensation rates and standards, means of living and income restoration plans and the engineering schedule. z Before the affected people are satisfied, the land acquisition compensation and resettlement should not be carried out.

All APs losing land temporarily, houses or sources of income will be compensated or rehabilitated in accordance with the type and amount of their losses and whether they are identified as affected temporarily during construction, or included in the final Detailed Measurement Survey (DMS) to be completed within the deadline specified by the government. APs cultivating land, constructing buildings or settling in project affected areas after the deadline will not be eligible to compensation or subsidies.

3.5 Principles and Objectives of Land Acquisition and Resettlement

40 3.5.1 Eligibility

The project affected persons (APs) who are entitled to receive compensation refer to the persons affected by the involuntary taking of land resulting in (i) relocation or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location.

All building owners and tenants, enterprises and workers and land users in the Project land acquisition and relocation areas will be eligible for fair compensation or assistance.

The resettlement office shall make a public notification of house demolition within 3 days after the House Demolition Certificate has been verified, including scope of house demolition and time limitation of relocation, and a written notice shall be given to the relevant department to stop processing the following documents in the relocation areas:

(i) The business license renewal and issuance to use the demolished house for business purpose; (ii) Procedures for sale, exchange, dividing, giving as gifts, transfer, mortgage of house except effective judgment made by People’s Court or arbitration organization; (iii)Examination and approval procedures for newly built, expanded and reconstructed and changed characteristics of houses and auxiliaries.

The cut-off date for the compensation will be determined by the government. The APs are those who lose their land, house and their livelihood due to the project construction. They shall be compensated and rehabilitated according to the type of loss and quantities as well as the cut-off date of the government within the completion date of the construction map and investigation; or due to the temporary impact during the construction phase. The newly cultivated land and newly built houses shall not be compensated after the cut-off date.

3.5.2 Compensation Principles

Taken together, the principles of land acquisition and resettlement are based on China’s land administration and provincial/municipal laws and regulation as well as the ADB’s policies, requirements and procedures. The primary objectives of the RP are to restore the income and living standards of the affected persons (APs) within a short period of time after resettlement and with as little disruptions as possible in their own economic and social environment. Particular attention will be given to the needs of the poorest and vulnerable groups to be resettled. The RP for this Project has been prepared with this as the guiding principle.

Under the requirements of Chinese laws and regulations and ADB’s Policy on Involuntary Resettlement, the principles of compensation and entitlement are as follows: z Provision of fair compensation and entitlement for the affected people, at least maintain

41 their living standard prior to the resettlement and try to improve it. z The scope of land acquisition and resettlement and the affected time duration should be minimized. z All of the certified/non-certified people or registered/unregistered people will be compensated. z Timely informing all affected people of related qualified conditions, compensation ratio and standard, means of living and income restoration plans and the engineering schedule. z Land acquisition and resettlement should not be taken before the affected people are satisfied with the compensation. z The relocated building and auxiliaries shall be dismantled after the disbursement of compensation payment. All of the costs for land acquisition shall be paid within 3 months from the date the land acquisition and resettlement is approved. z Provision of maximum possible compensation and help for all affected people according to the feasible investment plan of the project.

3.5.2.1 Land Acquisition and Economic Rehabilitation z After the land acquisition, if the land will be re-allocated or farming is the means of living, then the per capita land occupation should be enough for maintenance of the living standard. However, given the limited land holding in the project areas, such approach is not likely. z If no land readjustment could be carried out, adequate cash compensation will be provided to affected individuals to engage various income generation activities, which will be supplemented by alternative employment opportunities in the project areas.

3.5.2.2 Principles of House Demolition, Resettlement and Compensation z The demolition of houses should follow the principle of “proper resettlement, reasonable compensation and demolition after compensation”. z The forms of resettlement of the houses are chosen by the affected people after negotiation by both sides with consideration of the affected people’s will and the funds and housing conditions. Different forms to be chosen are: (i) cash compensation, (ii) replacement housing, and (iii) housing plot place compensation for lost structures. (The last choice is only available for rural relocated households). Cash compensation will be based appraised value on affected houses, which will enable relocated households to

42 purchase replacement housing from the market. Replacement housing option is for the demolition agency to purchase replacement housing near the sites and allocate them to relocated households based on the same size of affected houses with no additional charge. z The third option is mainly referring to those 765 rural relocated households, Under the condition that the affected people are willing to rebuild houses by their own within the same village (choice (iii)), they will be provided with replacement housing plots and compensation for lost houses as well as assistance during the process of house reconstruction. z For the affected tenants, notification should be made three months in advance. In addition, the demolition company will be responsible to assist them to obtain alternative housing spaces. For those tenants with on-going leases, they will be guaranteed a rental contract equal to the reminder of their previous contract. Contractual terms will be equivalent to those of the old contract. In addition, necessary assistance will be provided to them to seek other living space.

3.5.2.3 Resettlement of Enterprises z Agreement should be reached between the affected enterprises and IA and local government three months before the relocation. z Carry out internal adjustments of the enterprises. z For the partially affected enterprises, cash compensation is made for the demolished structures. Meanwhile, compensation for removal of equipments and facilities and stoppage of work and loss of production output value/profit is made to the affected enterprises due to the adjustment of the site and building reconstruction. z Compensation for salary loss will be provided to the affected workers of the affected enterprise. Basic salary will be directly paid to the registered workers in cash during the stoppage of the enterprise. z For the enterprises moved as a whole, the product development and adjustment of the structure can be planned with consideration of the construction of townships and villages and the economic development planning. The local government should try to help these enterprises keep their old customers and develop new market, and offer exemption or preferential tax policies, especially during the resettlement and the first year of production restoration.

3.5.2.4 Compensation and Restoration of Affected Special Facilities and Infrastructures

43 z During the implementation of the project, if the special facilities and infrastructures mainly affected have loss of electricity lines, telephone lines, roads, green space, various kinds of underground pipes, and telecommunication and transportation, these facilities and infrastructures should be restored within the affected communities. z If the compensation takes the form of monetary compensation, the compensation rates should be paid in time and certain effort should be made in helping related departments to minimize the period of outage and to restore the above special facilities and infrastructures, such as power supply, communication and transportation.

3.5.2.5 Special Provision for Illegal Structures and Vulnerable Groups

The existing Chinese Laws do not compensate for the acquisition of houses and land from the illegal occupations. However, according to the ADB regulations, all demolished structures, no matter they are legal or illegal, are all compensated on the same basis with legal ones. For this project, all demolished structures will be compensated on the same basis according to the ADB requirements, irrespective of title and tenure rights, including for the “floating population”.

According to the result of the socio-economic survey, 13 households of the total 1,104 households are poor due to lack of financial capital, elderly, disabled, and no jobs. In addition to the compensation for their affected properties, special provisions will be given to them, refer to Section 3.3.3 for the details.

3.6 Calculation of Compensation Rates

Based on large-scale inquiries beforehand, the Fuzhou Urban Management Regulatory Bureau convened a meeting with participation of primary organizations of the townships and villages and representatives of the affected people within the project area, negotiated with them and established the compensation standards for land acquisition and resettlement, and loss of houses, attachments of the land and standing crops (summary of the meeting refers to Appendix III). The agreed standards are specified in the following sub-sections.

3.6.1 Permanent Land Acquisition Compensation Rates

According to the national and local land administration laws and city regulations, the land compensation, resettlement subsidy and compensation for loss of standing crops is 17 times the average yield of the land in three previous years. Details are presented in Table 3-1.

Table 3-1. Compensation Rates for Permanent Land Acquisition

44 Compensation Multiplier Yield Unit-Price Compensation Land Type (kg/mu) (RMB/kg) Land Resettlement Standing Rate (RMB/mu) Compensation Subsidy Crops Farmland 2,400 1.84 10 6 1 75,072 Fish pond 1,670 3.1 10 6 1 88,009 Orchard land 3,200 1.4 10 6 1 76,160 Woodland 40,400

3.6.2 Houses, Structures and Auxiliaries

Detailed compensation rates for demolition of residential houses are shown in Table 3-2 and Table 3-3. For this project, the decoration cost is included in the compensation rates, while compensation for household facilities, such as electricity meters, water meters, telephones, cable TV, and transfer and transportation costs are listed separately.

Table 3-2. Compensation Standard of House Demolition Multi-Storey Brick/ Simple Brick/Wood Mud-Wood Wood Concrete Concrete Structure (RMB/m2) (RMB/m2) (RMB/m2) (RMB/m2) (RMB/m2) (RMB/m2) 950 740 690 560 490 590

Electricity Telephone Cable TV Water Meter Meter (RMB/line) (RMB/line) 450 70 216 160 Note: The housing compensation rates include compensation of affected housing plots at Y300 per square meter or Y200,100 per mu.

Table 3-3. Compensation Standard of Auxiliaries Auxiliaries Unit Compensation Rate (RMB) Terrace m2 40 Well no. 400 Fence Wall m 60 Iron Door no. 100 Pig Pen m2 45 Water Pool no. 100 Temple no. 400 Water Pump no. 300 Tree D>10cm no. 60 Trees with Fruits no. 100 Trees without Fruits no. 80

3.6.3 Public Facilities and Infrastructures

The detailed compensation rates for public facilities are shown in Table 3-4.

45

Table 3-4. Compensation Standards for Public Facilities and Infrastructures 250 m High-Voltage 125 m Low-Voltage Street Lighting Light Cable Transformer Electrical Pole Electrical Pole Pope (RMB/km) (RMB/Piece) (RMB/Pole) (RMB/Pole) (RMB/No) 30,000 10,000 100,000 250 200,000 Telecom Pole Cable TV Water Supply Pipe Public Toilet Bicycle Shed (RMB/Pole) (RMB/Meter) (RMB/Meter) (RMB/m2) (RMB/m2) 2,500 50 50 50 50 Agricultural Products Bridge Electricity House or Switch Village Road (RMB/km) Market (RMB/m2) (RMB/No) House (RMB/m3) 300 10,000 20,000 100

3.6.4 Taxes on Land Acquisition

The detailed compensation rates for taxes on land acquisition are provided in Table 3-5.

Table 3-5. Taxes on Land Acquisition (RMB/mu) Items Unit Compensation Standards (RMB) User Fee of Land Occupation for Construction mu 26,700 Occupation of farmland mu 5,333 Vegetable Land Reclamation mu 35,000 Fish Pond Reclamation mu 25,000 Provincial Land Management Fee mu 1,000 Farmland Reclamation mu 8,000

3.6.5 Entitlement Matrix

Included in Table 3-6 is the Entitlement Matrix which was developed on the basis of the above principles and standards of compensation.

46 Table 3-6 Entitlement Matrix of APs Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues Permanent land loss Permanent loss of The affected village (groups) will entitle to land z Cash compensation for loss of standing crops at (661 households or agricultural land, compensation fund. market prices. The compensation rates for crops 3,583 persons) non-agricultural land shall be around Y4,416 per mu for cultivated and crops. 1,106.8 mu The affected 661 households and 3,583 persons will land , Y5,177 for fish pond, Y4,480 for fruit (73.79 ha) of land in receive cash compensation for loss of standing crops. garden. If no farmland could be re-allocated by affected total for the Project z If no farmland could be allocated, the AP will be village groups, the affected persons will receive cash provided with resettlement subsidy and part of compensation of resettlement subsidy and part of land compensation fund to be used for income generation land compensation (no less than 80 percent) for and restoration of income and livelihood, income generation. z The local district and township governments will provide assistance to AP to be employed in local enterprises. z The project owner will give AP priority to be employed in maintaining and cleaning the completed inland rivers, including technical training prior to employment.

Permanently affected With structures built Owner Cash compensation or replacement house z The provision of replacement housing of z Assistance private house (1,104 thereon. 191,081 m2 will be provided to the APs. equivalent size, at a location satisfactory to the provided to APs for households or 4,858 private houses in total AP. house purchase and persons, including All users with or without legal house z Cash compensation for affected structures at full exchange of house 339 urban households certificate papers including AP settled on replacement cost of materials, equipment and certificate or 1,182 urban the land after 29/08/98 (Land Law) as labor with no deduction for depreciation or z Assistance 2 population and 765 long as they are included in the final AP salvageable materials. The rates per m shall be provisions to APs rural households or list or are able to prove their occupation of RMB 950 for multi-story structure per squire during resettlement 3,676 rural affected plots and structures before the meter, RMB 740 for brick & concrete, RMB 690 process population; 643 cut-off date. The cut-off date will be for brick & wood, RMB 560 for mud & wood, households with determined by the Fuzhou municipal RMB 590 for wood, and RMB 490 for simple z APs with certificate of house government. structure. non-certified and 461 households z Provision of homestead plus cash compensation houses will need to The house owners without house for demolished structures to the APs at without certificate of pay administrative certificate will be treated as the same as replacement value. house. Among those fees to certify new the legal owners • If the APs do not agree compensation rates, they living in these houses, house could select a qualified real estate appraisal 1,037 households are agency to appraise their properties. The final house owner and 67 compensation rates will be based on appraised household are tenants. rates. • If the residential land and/or structure is only partially affected by the Project and the remaining residential land is not sufficient to

47 Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues rebuild the residential structure lost, then at the informed request of the AP the entire residential land and structure will be acquired at full replacement cost, without deduction for depreciation or salvageable materials. • The threshold of insufficient remaining residential land is to be determined based on consultation with AP.

Tenant All of the tenants will be guaranteed of a z Cash allowances will be provided to APs to z Assistance will be rental contract equal to the remaining of cover transfer and transportation costs provided to APs to their previous contract. Contract terms seek other house to will be equivalent to those of the old live contract.

All of the APs will be compensated on the same basis, irrespective of title and tenure rights, including “floating population”.

Other private Household facilities: Cash compensation will be paid to the APs z Cash compensation for affected property at properties 1,104 electric meters, replacement cost. 552 water meters, 880 z Compensation to move the facility, OR telephones, and 950 z Repair of facility by contractor to original or cable TVs better condition. z Compensation rates of household facilities: 450 Auxiliaries: 38,500 m2 electric meters, 70 water meters, 216 telephones, terrace, 4 wells, 12,551 and 160 cable TVs m fence wall, 535 iron z Cash compensation for auxiliaries: RMB 40/m2 door, 7,937 m2 pig pen, for terrace, RMB 400 for wells, RMB 60/m for 102 water pool, 10 fence wall, RMB 100 for iron door, RMB 45/m2 temple, 69 water pump, for pig pen, RMB 100 for water pool, RMB 400 186 tree D>10 cm, for temple, RMB 300 for water pump, RMB 60 4,153 trees with fruit, for tree D>10 cm, RMB 100 for trees with fruit, and 2,874 trees without and RMB 80 for trees without fruits fruits

48 Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues Permanently affected With structures built Cash compensation will be paid to the affected z The provision of replacement building land of Public Buildings thereon. 10,020 m2 of collectives equivalent size, at a satisfactory to the affected community house in collective. AND total (including 665 m2 z Cash compensation for the loss of structure at hospital/clinics, 540 m2 full replacement value will of materials, school, and 8,815 m2 equipments and labors with no deduction for village office & public depreciation or salvageable materials. The rate activity buildings) shall be RMB 300 per m2 Permanently affected With structures built Owner Cash Compensation or replacement z The provision of replacement business land of enterprise/commercial thereon. 34,271 sq m in enterprise/commercial house will be equivalent size, at a location satisfactory to the house (75 enterprises total, including 33,636 provided to the APs. AP. and 7 shops, m2 enterprises z Cash compensation for affected structures at full including 5 state buildings and 635 m2 All users with or without legal house replacement cost of materials and labour with no enterprises and 68 shops. certificate papers including AP settled deduction for depreciation or salvageable private and 2 others, on the land after 29/08/98 (Land Law) materials. The rates shall be RMB 850 for and 7 private shops) 2,771 employees will as long as they are included in the final multi-story structure per squire meter, RMB 640 be affected AP list or are able to prove their for brick & concrete, RMB 590 for brick & occupation of affected plots and wood, RMB 460 for mud & wood, RMB 490 for structures before the cut-off date. The wood, and RMB 390 for simple structure. cut-off date will be determined by z If the business land and/or structure is only Fuzhou municipal government. partially affected by the Project and the partial demolition will not affect the whole house structure, the house will not be demolished to avoid the loss of good enterprise/business location, and loss of production/business stoppage z The threshold of insufficient remaining enterprise/ business land and structure is to be determined based on consultation with AP. AND z Rehabilitation assistance z Cash compensation will be paid to the business owners for the profit losses for each month of production stoppage z Cash compensation paid for relocation allowance of enterprises and shops at RMB 10-20 per square meter z Cash compensation will be paid for the transportation and transfer allowance. AND z Bonus at RMB 1,000 per employee will be provided to business owners to re-employ original employees z

49 Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues Employees All of the permanent and contract z 3 person-month salary loss will be provided to employees will be compensated in cash the affected employees for the loss of salary. z The affected workers will be re-employed in the same shops/stores after the business is restored. AND z Training will be provided by the IA if workers cannot be re-employed in the same business. Measures for income Loss of 1,024 mu of The affected 661 households and 3583 persons will z Cash compensation for loss of standing crops at restoration farmland for the receive cash compensation for loss of standing crops. market prices. The compensation rates for crops rehabilitation of 13 If no farmland could be re-allocated by affected shall be around Y4,416 per mu for cultivated inland rivers, which village groups, the affected persons will receive cash land , Y5,177 for fish pond, Y4,480 for fruit include 338 mu paddy, compensation of resettlement subsidy and part of land garden. 465 mu fish pond, 221 compensation fund to be used for income generation z If no farmland could be allocated, the AP will be mu fruit gardens. A and restoration of income and livelihood, provided with resettlement subsidy and part of total of 661 households land compensation (no less than 80 percent) for and 3,583 persons and 32 villages will be income generation. affected. z The local district and township governments will provide assistance to AP to be employed in local enterprises. z The project owner will give AP priority to be employed in maintaining and cleaning inland rivers, including technical training prior to employment.

Materials, transfer and Relocating AP All relocating AP will be entitled to cash assistance to transportation transport household effects, salvaged and transport allowance new building materials to Resettlement Sites. The assistance rate shall be RMB500 per household for relocation allowance, RMB200 per household for subsidy of lost working days, RMB100 per household for transfer loss, RMB200 per household for medical allowance, plus RMB50 per person month for transitional allowance

50 Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues Special allowance for Affected vulnerable population (the very poor, They will be provided with: households receiving minority, elderly disabled, receiving social assistance, z special assistance and attention, such as social assistance and/or or female-headed households) resettlement assistance fund at RMB 2,000 per households. In total 13 household, poor households have • the provision of government economy rental been identified. house if needed, and • For those vulnerable families whose livelihood will be affected seriously, they will get special training allowance, in particular women. The allowance is RMB 300 per person. Grievance Property indexes, APs who involved in making appeal and grievance for The affected people will be exempted from various compensation the settlement of land acquisition and resettlement kinds of fees involved in making complaints and standards, issues claims for land acquisition and resettlement issues compensation payment, resettlement and rehabilitation measures

51 Chapter 4 Socioeconomic Profile of Affected People

A socioeconomic survey of 250 households along the banks of the inland rivers on Nantai Island was carried out from July 3rd to 20th in 2003 by the Fuzhou Municipal Socioeconomic Survey Team (FSST). The survey sample was randomly selected from the affected areas from the census list of households. The survey was conducted face-to-face with a structured questionnaire. The results of the socioeconomic survey are summarized in the following sections.

4.1 Demographical Characters of the Surveyed Households

The survey shows that the size of an average household of the surveyed households is 4.48 persons.

According to the socioeconomic survey, the average age of the respondents is 49.57 years. The detailed breakdown of the age structure of the respondents is provided in Table 4-1.

Table 4-1. Age Structure of Respondents Age Group No. of Persons Percentage 20—29 7 2.8% 30—39 37 14.8% 40—49 86 34.4% 50—59 76 30.4% 60—69 28 11.2% 70—79 11 4.4% Over 80 5 2.0% Total 250 100.0%

The survey also shows that of the 250 respondents, 178 persons or 71.2% are male and 71 persons or 28.8% are female. All of the respondents belong to the Han ethnic group; or there are no ethnic minorities in the surveyed area.

The educational levels of the respondents as a whole are quite low, with 78.8% having middle school or lower and only 2.8% having finished college or university.

As far as the employment of the respondents is concerned, individual business owners have the highest percentage at 27.2%, followed by the retired at 10.0%, those who perform household duties at 10.0%, the unemployed at 9.6%, JV employees at 8.0%, private business owners at 7.2%, employees of private enterprises at 6.8%, fishers at 3.2%, employees of state-owned enterprises at 3.2%, employees of collective-owned enterprises at 2.8%, government employees at 2.0%, employees of town-owned enterprises at 1.2% and professionals at 0.4%.

52 4.2 Length of Stay in Present Community and Housing Conditions

According to the survey, the majority (82%) of the surveyed families have stayed in the present community for several generations; and only 0.4% for less than five years. The survey results show the majority families have a fairly deep root in the present communities in which they live, implying a strong attachment to the present community and strong psychological stress if relocated. The families lived less than 5 years are mainly floating population.

The survey revealed that 24.0% of the houses are older than 25 years, 14.8% between 20 and 25 years, 19.6% between 16 and 20 years, 14.8% between 11 and 15 years, 16.0% between 6-10 years and 10.8% between 1-5 years. The average age of the houses is 24.67 years. The house structure shows that 52% of the houses are brick and concrete, 21% reinforced concrete, 18% brick and wood, and 9% wood. The house ownership structure shows that 84.8% of houses are self-built with legal ownership, 11.2% squatted without legal ownership, 9.6% rent from work unit, 1.2% rent from landlord, and 1.6 purchased.

Under the Project, the house valuation will be appraised by the housing appraisal agency at replacement value.

4.3 Household Income and Expenditure

According to the survey of the affected households, an average population of 2.42 per household have cash income. The income and expenditure of surveyed households in 2002 are shown in the Table 4-2. Table 4-3 provides the annual income and expenditure per capita by affected district.

Table 4-2 Household Income and Expenditure Income and Expenditure HH__ Min Max Mean Std. deviation Annual Income Per Capita in Urban Area 60 2400 29600 7,035 4898 Annual Net Income Per Capita in Rural Area 190 2000 200000 15,553 26132 Annual Expenditure Per Capita in Urban Area 60 2181 19467 5,521 3114 Annual Expenditure Per Capita in Rural Area 190 1920 125825 9,657 13420 Annual Income Per Household in Urban Area 60 2600 88800 24,883 15994 Annual Net Income Per Household in Rural Area 190 7200 539600 65,033.41 88879.96 Annual Expenditure Per Household in Urban Area 60 2240 58400 19,431.1 10715.32 Annual Expenditure Per Household in Rural Area 190 5470 503300 42,714.44 55444.37 Note: average incomes may be skewed by a few high incomes

Table 4-3 Annual Income and Expenditure Per Capita by Affected District Annual Annual Expenditure Per Capita District

53 Income Water & Transportation Per Total Food Clothing Education Medical Capita Energy Telecom. Urban area Gulou 7,481.21 5,744.7 2,756.58 214.34 574.34 326 509.21 470.2 Cangshan 5,906.88 4,956.71 2,347.22 236.11 405.47 314 409.72 250 Total 7,035.15 5,521.43 2,62.005 221.34 520.06 322 477.23 399.42 Rural area Cangshan 15,553.00 9,656.69 2,793.14 333.70 944.97 1,016 783.44 699.38 Total 15,553.00 9,656.69 2,793.14 333.70 944.97 1,016 783.44 699.38

Consumption and trading of grains, meat, eggs and fruits in surveyed households in rural areas is shown in Table 4-4. From the table we can see that animal husbandry is main source of income, accounting for 80% for 10 households, vegetables is 15% for 22 households. The findings indicate that the APs engaged in agricultural sector are less living on grains, but first meat, next vegetable, fish/milk and fruits.

Table 4-4 Consumption and Trading of Agricultural Products Self Annual HH Amount and Value of Trading No. of Category Production Consumption Purchased Value Sold No. of Value HH No. of HH （kg/year） （kg/year） (kg/year) (RMB) (kg/year) HH (RMB) Grains 3,000 1 1,000 0 0 0 2,000 1 600 Meat 186,956 26 3,227 1,301 19 14,740 185,030 10 1,205,400 Egg 750 3 280 0 0 0 470 2 2150 Vegetable 268,750 25 10,015 1,460 5 1,260 260,195 22 218,868 Fruits 10,515 16 4,420 1,700 9 7,950 7,795 9 39,600 Fish/Milk 32,150 3 1,035 35 1 500 31,150 3 66,000

4.4 Property Ownership

According to the survey of 250 affected households, the properties per hundred households are shown in Table 4-5. Table 4-5 Property Ownership Items Number of households Percent of households Color TV 149.2 59.68% Black and white TV 22 8.8% Stereo recorder/VCD/DVD 68.8 27.52% Refrigerator/freezer 101.2 40.48% Washing machine 89.2 35.68% Dishwasher 0.4 0.16% Micro-wave oven 43.2 17.28% Water heater 74 29.6%

54 Items Number of households Percent of households Electric fan 283.6 113.44% Air-conditioner 81.6 32.64% Drinking water machine 29.6 11.84% Electric cooker 69.6 27.84% Telephone 106 42.4% Mobile phone 104 41.6% Computer 16.8 6.72% Piano 0.4 0.16% Car 3.6 1.44% Motorcycle 46 18.4% Truck 1.6 0.64% Tractor 0.4 0.16% Forklift 0.4 0.16%

4.5 Poor Households

Five households are identified as poor households. The major reasons of their poverty are due to disabled for one household, lack of capital for one household, elder for one household, and unemployment for other two households.

4.6 Land, Production and Income

According to the survey of affected rural households, land possession, annual production of land and income are presented in Table 4-6.

Table 4-6 Land, Production and Income Land Use Non-irrigated land Orchard Pond Other No. Land (mu) No. Land (mu) No. Land (mu) No. Land (mu) Allocated 30 18 12 7 2 1 2 1 Self-developed 9 10 5 2 0 0 3 7 Production 25 412,377 12 9,360 2 1,850 5 482,000 (mu/kg/year) Gross income 25 223,468 10 45,600 2 22,800 5 91,636 (mu/kg/year） Net income 25 186,168 10 38,750 2 16,000 7 428,300 (mu/kg/year)

In total, 190 households of the 250 surveyed households are rural households, including 56 households who have land, of which 49 households own the land (have the right to use the land) and 7 households rent the land from landlords.

55

Plants grown on the land of surveyed people include: vegetables (25 households), flowers (3 households), fruit trees (11 households); and one household pile grit on the land. About 35 households of the 190 surveyed rural households raise poultry and/or livestock, and 5 surveyed rural households raise fish, ducks and geese, etc in the nearby inland rivers.

According to the survey, adult males account for 53.27% of the time spent on the agricultural production, and adult females account for 46.73%; adult males account for 63.53% of time spent on sideline production, and adult females account for 36.47%.

4.7 Choices of Land Acquisition and Resettlement and Compensation

Survey shows that 76 households (30.40% of the total) have known about the land acquisition and resettlement, and 174 households have not known (69.60% of the total).

Preferred compensation for house relocation of the surveyed people is ranked in Table 4-7.

Table 4-7 Rank Choices of Resettlement for the Surveyed Population First Choice Second Choice Third Choice Options Rural Urban Total Rural Urban Total Rural Urban Total Cash compensation; build a new house on 95 3 98 35 3 38 6 2 8 my own Cash compensation; buy a new house on 20 9 29 36 17 53 27 3 30 my own House of same size and quality provided 53 39 92 20 4 24 21 2 23 by the government New residential site constructed by the 3 1 4 9 8 17 4 3 7 government Not decided yet 15 7 22 6 0 6 4 0 4 Land compensation 4 1 5 2 0 2 1 1 2 and cash Total 190 60 250 108 32 140 63 11 74

56 Of the total surveyed households, 81% would like to be relocated in the village of the same district, 8.5% no idea yet, 5% new residential site constructed by the government, 2.5% urban area, 2.5% neighbouring district/village, and 0.5% other district/village.

According to the survey, most (49.2%) of the APs ask for house with equivalent area, 32% ask for cash, 11.2% ask for cash and residential land, and 7.6% no idea. The comparison of the preferred house compensation between urban area and rural area is shown in Table 4-8.

Table 4-8 Comparison of the Preferred House Compensation between Urban Area and Rural Area Cash House with Cash and Land No Idea Equivalent Area Rural Area 36.32% 43.16% 14.21% 6.31% Urban Area 18.33% 68.33% 1.67% 11.67%

According to the survey, about 46.43% of the APs prefer cash compensation, 35.71% land of equivalent area and quality, 8.34% no idea, 7.14% employment arrangement, and 2.38% other.

According to the survey, the willingness of the surveyed people of accepting training for other employment opportunities is 53.6%, 24.80 unwilling, 11.6% not applicable, and 10% no idea.

4.8 Knowledge of the Project and RP

For the surveyed people who had heard about the Fuzhou Environmental Improvement Project, 20.8% heard from township government/village committee, 11.6% from neighbours, relatives and friends, 6.4% from TV, 6% from newspaper, 2.8% from social investigators, 1.6% from meeting of district/street committee or factory. The details are provided in Table 4-9.

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Table 4-9 Information Sources to APs about the Project Information Sources No. of Households Percentage Newspaper 15 6% TV 16 6.4% Meeting 4 1.6% (District/Street Committee/Factory) Township/Village Committee 52 20.8% Neighbours, Relatives and Friends 29 11.6% Social Investigators 7 2.8% No Idea 125 50% Total 250 100%

The earliest time for the APs hearing about land acquisition and house demolition is : About 56.4% have no idea, 39.6% less than 6 months, 1.6% a year ago, 0.8% two, three and four years ago.

4.9 Knowledge of Related Laws and Regulations

Of the surveyed households, 0.8% of them have much knowledge, 80.8% no idea about the related laws and regulations of land acquisition and house demolition, 14.8% a little knowledge, 3.6% average knowledge.

Of the surveyed people encounter problems concerning the land and house acquisition and/or resettlement, 11.2% of them know about the appealing procedure and 88.8% don’t know.

4.10 Views of the Project by APs

When asked the respondents about their views on the benefits of the project, less people are aware of the Project during the socio-economic survey of the Project. There are 80% of the APs agree to the Project. The details are presented in Table 4-10.

58 Table 4-10 Views of the Project by APs Total Rural area Urban area Questions Asked No. % % % Very 1 0.40% 0.53% 0.00% 1. Are you knowledgeable about the Fuzhou A little 88 35.20% 34.21% 38.33% Environmental Improvement Project? Not at all 161 64.40% 35.26% 61.67% 2. Do you agree to the Fuzhou Environmental Yes 198 79.20% 78.95% 80.00% Improvement Project? No 20 8.00% 7.89% 8.33% Don’t care 11 4.40% 4.74% 3.34% Don’t know 21 8.40% 8.42% 8.33% 3. Do you think the Project will improve the Yes 219 87.60% 87.89% 86.67% water quality in the area? No 6 2.40% 3.16% 0.00% Don’t know 25 10.00% 8.95% 13.33% 4. Do you think the Project will improve the Yes 214 85.60% 85.26% 86.67% environment in the area? No 6 2.40% 3.16% 0.00% Don’t know 30 12.00% 11.58% 13.33% 5. Do you think the Project will promote the Yes 150 60.00% 53.68% 80.00% local economic development in general? No 14 5.60% 7.37% 0.00% Don’t know 86 34.40% 38.95% 20.00% 6. Do you think the Project will promote the Yes 128 51.20% 46.84% 65.00% development of local tourism industry? No 19 7.60% 9.47% 7.67% Don’t know 103 41.20% 43.68% 28.33% 7. Do you think the Project will help increase th Yes 144 57.60% 53.68% 70.00% value of real estate? No 10 4.00% 4.74% 1.67% Don’t know 96 38.40% 41.58% 28.33% 8. Do you think the Project will help improve Yes 150 60.00% 55.79% 73.33% the investment environment? No 4 1.60% 2.10% 0.00% Don’t know 96 38.40% 42.11% 26.67% 9. Do you think the Project will benefit the Yes 114 45.60% 42.63% 55.00% poor? No 31 12.40% 14.74% 5.00% Don’t know 105 42.00% 42.11% 40.00% 10. Do you think the Project will benefit Yes 114 45.60% 43.16% 53.33% women? No 21 8.40% 10.00% 0.33% Don’t know 115 46.00% 46.84% 43.34% 11. The Project will make the life of your Better 87 34.80% 24.74% 35.00% family: Worse 55 22.00% 25.26% 11.67% No difference 21 8.40% 7.89% 10.00% Don’t know 87 34.80% 32.11% 43.33% 12. Generally speaking, the impacts on your Benefit 66 26.40% 23.16% 36.67% family from the Project: Lose 82 32.80% 39.47% 11.67% Don’t know 102 40.80% 37.37% 51.66% 13. Do you have enough information about the Yes 7 2.80% 3.16% 1.67% impacts of the Project on your family? No 77 30.80% 31.05% 30.00% Don’t know 166 66.40% 65.79% 68.33% Very 3 1.20% 1.05% 1.67% 14. Do you know about the new “Land A little 21 8.40% 7.90% 10.00% administration law” (issued in 1998)? Not at all 226 90.40% 91.05% 88.33% Yes 98 39.20% 43.16% 26.67% 15. Do you think your loss will be fairly No 22 8.80% 8.95% 8.33% compensated? Don’t know 130 52.00% 47.89% 65.00% 16. Do you think the relevant organizations will Yes 83 33.20% 37.37% 20.00% provide you necessary help in addition to No 16 6.40% 6.32% 6.67% compensation? Don’t know 151 60.40% 56.32% 73.33%

59 Chapter 5 Resettlement, Livelihood & Income Restoration Plan

5.1 Objectives and Principles of Resettlement and Rehabilitation Plan

The purpose of the resettlement and rehabilitation plan is to ensure that the affected people will regain or surpass their previous standards of living after the resettlement. The following specific objectives have been determined in accordance with the actual living standards of the resettlers in the project area: z For land loss farmers, adequate compensations and proactive rehabilitation measures will be provided to ensure their income could be restored or improved after resettlement and rehabilitation. z For those affected by house demolition, adequate cash compensation and in-kind replacement housing as well as transfer assistance will be provided to ensure that relocated households will improve their living conditions after relocation and rehabilitation. z For affected enterprises and shops, particularly those relocated shops and 17 enterprises, adequate cash compensation for lost structures or in-kind replacement spaces, compensation for lost income and lost wages, and compensation for transfer will be provided to ensure that affected enterprises and shops will restore their operation, all affected employees will be re-employed, and overall business will be improved after relocation and rehabilitation.

5.2 Preferred Options for Compensation and Resettlement by APs

The survey result shows that for those households will be relocated that 127 households or 50.8% of them would like to be compensated by cash, while 92 households or 38.4% of them would like to be relocated with the provision of equivalent size and quality of house provided by the government, 4 households or 1.6% newly built resettlement site by the government, 5 households or 2% replacement homestead plus cash, and 22 households or 8.8% not decided yet. Table 5-1 provides the details.

Table 5-1 Options of Resettlement Surveyed Surveyed % of Total Alternatives of House Compensation Rural Urban Subtotal Surveyed Population Population HH Cash Compensation: build new house by 95 3 98 39.2% themselves Cash Compensation: purchase new houses by 20 9 29 11.6% themselves Equivalent size and quality of house provided by 53 39 92 36.8%

60 the government Newly built resettlement site by the government 3 1 4 1.6% Not Decided yet 15 7 22 8.8% Replacement land plus cash 4 1 5 2.0% Total 190 60 250 100.0%

The resettlement location of the surveyed people is reflected in Table 5-2. Of the total surveyed households, 81% would like to be relocated in the village or areas of the same district, 8.5% no idea yet, 5% new residential site constructed by the government, 2.5% in central city, 2.5% neighbouring district/village, and 0.5% other district/village.

Table 5-2 Preferred Place for APs to Be Relocated Preferred Place for APs to Be Relocated Number of Family Percentage Original Area/Village 203 81% Urban Area 6 2.5% Not Decided 21 8.5% New Residential Area 13 5% Other Area/Village 1 0.5% Neighboring Area/Village 6 2.5% TOTAL 250 100%

The preferred compensation by the surveyed people for the loss of private enterprises/business is: of the total surveyed enterprises/businesses, 41.67% preferred cash compensation, 25% enterprise/shop building, 17.86% employment arrangements, and 15.47% no idea yet.

According to the survey, the willingness of the surveyed people of accepting training for other employment opportunities is 53.6%, 24.80 unwilling, 11.6% not applicable, and 10% no idea .

5.3 Resettlement and Compensation Plan

During the process of resettlement implementation, the resettlement implementation agency will identify all the possible location and method of resettlement based on the preference of APs and relevant regulations of resettlement. The affected people will be provided with all the information so that they can make their choice before signing the resettlement agreement, and their requirement and expectation can be satisfied to the largest extent.

5.3.1 Resettlement and Rehabilitation for Relocated Households

The rehabilitation of 13 inland rivers will acquire 1,106.8 mu land areas and demolish 191,081 square meters of houses. A total of 1,104 households will be relocated, including

61 339 urban households and 765 rural households. In Fuzhou, according to Fuzhou City Urban Building Demolition Administration Method, the compensation for demolished houses will be based on replacement cost. There are three options for house compensation (two for urban households). The first one is cash option; the second one is in kind option; and the third one (only available for rural households) is to provide replacement housing plots plus compensation for lost houses.

The cash compensation is to provide cash to affected households based on house compensation rate and affected house floor space. Based on commodity housing price in different urban locations, a set of basic compensation rates is provided, which will be the basis for house compensation. Such compensation rates include the assessed land value and house compensation, which will be appraised and provided each year by Fuzhou Municipal Government. Based on location of affected areas, and current commodity housing price in these locations, the housing compensation rate for this project is tentatively set at Y950 per square meter for concrete frame structure, Y740 per square meter for concrete brick structure, Y690 per square meter for brick wood structure, Y590 per square meter for wood structure, Y560 per square meter for earth wood structure, and Y490 per square meter for simple structure.

If the affected households are not satisfied with the compensation rate, they could also choose a qualified real estate appraisal agency to appraise their affected structures. The cost of house appraisal will be provided by the project owner. Following the approved procedure and regulations, the result of appraisal will be disclosed to the affected households, which will be used as the basic for house compensation. With cash compensation, the affected households could purchase replacement housing of their choice. In the project areas, there are quite a few new housing estates available with over 130,000 square meters. They include Jinshan Bishui and Jinpu Housing Estates in Cangshan District. All new apartments will have modern facilities and community services, and the overall quality will be much better than the demolished houses.

The second option is for the project owner to provide replacement housing to the affected households. Following the Fuzhou City Urban Building Demolition Administration Method, the replacement housing option will be based on the same amount of affected floor space in the similar locations. The standard replacement housing units include 45, 60, 75, 90 and 105 square meters. For those households with more than 105 square meters, two separate apartments should be provided. The affected household will entitle to same amount of replacement housing with no additional charges. If the difference of demolished spaces and proposed unit is within 10 square meters, the affected people need only to pay basic cost of such additional space, which is set at Y700 per square meter. In order to meet different needs of affected people, the project owner will provide several different housing estates in the same areas for selection.

The third option is the variation of the first option, which only applies to rural relocated households. They have the option to use cash compensation to rebuild their houses within

62 their villages. Under this option, the village or township government will provide assistance for the relocated households to obtain new housing plots. According to the survey, the cost of good housing plot for 120 – 150 square meters will cost about Y10,000 to Y15,000, or Y80-Y100 per square meter. Under cash compensation, the land value for the housing area is included in the total compensation rates, which is assessed at Y300 per square meter for the affected area. For those rural households who would like to select the third option, there are more than enough funds for them to obtain a new housing plot and rebuild their houses.

In addition to basic house compensation, the affected people will be provided compensation for various affected facilities, which include Y450 for each electricity meter, Y70 for each water meter, Y216 for each telephone line, and Y160 for each cable TV. In terms of decoration compensation, they are included in the compensation rates.

During the relocation, various transfer assistances will be provided for each affected household. They include (1) moving allowance, (2) medical subsidy, (3) transfer assistance, and (4) compensation for lost working time. Based on Fuzhou city regulations, it is decided that moving allowance will be set at: Y500 per household; medical subsidy: Y200 per household; transfer losses: Y100 per household; lost work time: Y200 per household; and transfer subsidy: Y50 per person per month.

5.3.2. Relocation and Rehabilitation of Enterprises and Shops

For affected enterprises and shops, according to Fuzhou City regulation, similar compensation and rehabilitation approach will be used. According to the survey, about 34,271 square meters of non-residential structures will be removed, including 33,636 square meters for enterprises and 635 square meters for shops. There are 75 enterprises and 7 shops to be affected by the Nantai Island Inland Rehabilitation Project. Due to the limited strip of impact and relatively large land areas of each enterprise, most of the affected enterprises will only lose small proportion of their properties. After readjustment and restoration, most of them could restore their production and operation. Only 17 enterprises and 7 small shops need to be relocated.

Following the provisions of Fuzhou City Urban Building Demolition Administration Method, the average compensation rate is set at slightly lower than residential compensation rates. They will be Y850 per square meter for concrete frame structure, Y640 per square meter for concrete brick structure, Y590 per square meter for brick wood structure, Y490 per square meter for wood structure, Y460 per square meter for earth wood structure, and Y390 per square meter for simple structure. These compensation rates will be the basis for providing replacement values for the affected enterprises and shops. In terms of rehabilitation for those relocated enterprises and shops, they could choose two different options.

The first option is cash option, which is based on selected compensation rate and total

63 affected floor space. Based on price of non-residential properties in different urban locations, a set of basic compensation rates is provided, which will be the basis for compensation. Such compensation rates will be appraised and provided each year by Fuzhou Municipal Government. Based on location of affected areas, and replacement values of different structures, these compensation rates are set at Y850 per square meter for concrete frame, Y640 per square meter for concrete brick, Y590 per square meter for brick wood, and Y460 per square meter for earth wood. According local officials, with such compensation rates, the affected village collective could easily purchase replacement spaces in nearby locations.

If the affected business owners are not satisfied with compensation rate, they could also choose a qualified real estate appraisal agency to appraise their affected structures. The cost of property appraisal will be provided by the project owner. Following the approved procedure and regulations, the result of appraisal will be disclosed to the affected village, which will be used as the basis for building compensation.

The second option is to provide replacement non-residential spaces (or replacement land areas plus cash compensation for lost structures) by the project owner to the affected units. Following the Fuzhou City Urban Building Demolition Administration Method, the replacement non-residential space option will be based on the same amount of affected floor space in the similar location. The affected business owners will be entitled to same amount of replacement industrial or retail spaces with no additional charges. In order to meet their needs, the project owner will provide several different non-residential properties for selection in various industrial districts in the project area.

For the remaining enterprises with only minor impacts, they will be entitled to the same cash compensation based on affected structures and production stoppage. They could use compensation to restore affected structures and make necessary readjustment within their enterprises so that their basic production and business could be restored or improved. The project owner and local governments will provide them necessary assistance and support for their internal adjustment and rebuilding.

During the process of demolition and relocation, compensation will also be provided to affected business owners to cover various losses, which include profit losses, wage loss, and cost of moving and transfer. Following Fuzhou City regulations, cash compensation will be provided to the business owners for their actual profit losses, which is based on the affected months profit for less than 12 months. For the businesses that have formal financial records, the standards of business profits will be used based on their financial balance sheet in the past 2 years. For those businesses that have no formal financial records, the average profit of similar businesses at the similar location, scale and type will be used.

For affected employees (2,771 persons), they will be paid compensation according to the affected months for potential interruption due to relocation. In addition, assurances will

64 be obtained from affected business owners to re-employ affected employees after relocation. To encourage such practice, Y1000 of bonus payment will be paid to the business owner for hiring each affected employee.

In terms of transfer assistance, it will include relocation allowance to be set at Y10-20 per square meter; while transfer and transportation allowance will be based on consultation with affected business owners.

5.3.3 Compensation and Restoration of Affected Public Buildings

Based on the survey, some public buildings such as school, hospitals/clinics and village administration and public activity buildings will be removed due to land acquisition for this project. Following Fuzhou City regulations and based on compensation provided, these affected public facilities will be restored either by the resettlement implementation agency or by the relevant local government agencies.

5.3.4 Economic Rehabilitation for Land Loss Farmers

The proposed project will cause land acquisition of 1,106.8 mu. A total of 661 households and 3,583 persons will be affected by such land loss, which will involve 32 villages and 4 townships in Cangshan District. Rehabilitation of production activities and restoration of the living standards of APs is the main criteria to judge the success of the resettlement and rehabilitation program. It is necessary to implement effective measures to ensure that income and livelihood will be restored or will even improve, after resettlement.

The townships to be affected by permanent land acquisition of the Project include Cangshan、Chengmen、Gaishan and Luozhou. Table 5-3 provides the socioeconomic situation of the four affected townships (no land acquisition for Xiadu Street).

Table 5-3 Socioeconomic Situation of the Affected Townships Year 2002 Item Cangshan % Gaishan % Luozhou %Chenmen % Total Number of Households 2,377.0 11,086.0 2,550.0 7,183.0 Total Number of Population 6,541.0 38,018.0 9,300.0 25,617.0 Social Output Value (RMB 104) 281,964.0 291,831.0 107,000.0 258,554.0 Industry 218,876.0 77.6% 263,630.0 90.3% 83,000.0 77.6 233,403.090.3% Agriculture 3,299.0 1.2% 6,391.0 2.2% 980.0 0.9%2,311.8 0.9% Construction 5,542.0 2.0% 3,840.0 1.3% 7,000.0 6.5%3,813.9 1.5% Transport 7,768.0 2.8% 6,815.0 2.3% 6,000.0 5.6%5,616.9 2.2% Commerce 40,562.0 14.4% 10,444.0 3.6% 7,500.0 7.0%11,634.3 4.5% Number of Working Force 3,202.0 12,936.0 8,000.0 10,627.0 1st Industry 546.0 17.1% 3,393.0 26.2% 2,300.0 28.8 2,548.0 24.0% 2nd Industry 1,517.0 47.4% 5,531.0 42.8% 3,500.0 43.8 4,175.0 39.3% 3rd Industry 1,139.0 35.6% 4,012.0 31.0% 2,200.0 27.5 3,904.0 36.7% Area of Cultivated Land (mu) 759.6 7,387.4 1,010.0 3,052.4 Irrigated Land 0.0% 1,547 20.9% 0.0% 491.8 16.1%

65 Year 2002 Item Cangshan % Gaishan % Luozhou %Chenmen % Dryland 150.0 19.7% 2,628.4 35.6% 0.0%1,444.1 47.3% Vegetable Land 477.4 62.8% 1,866.0 25.3% 230.0 22.8 878.5 28.8% Pond 132.2 17.4% 1,024.0 13.9% 50 5.0% 60 2.0% Nursery Land 0.0% 10 0.1% 150 14.9 35 1.1%

Mulberry, Fruit and Tea Garden 0.0% 312 4.2% 580 57.4 143 4.7%

Area of Cultivated Land/Person 0.12 0.19 0.11 0.12 Area of Cultivated Land/Household 0.32 0.67 0.40 0.42

Based on the above data, the agricultural output value accounts for a very small proportion of total output values in four townships, ranging from 0.9 to 2.2 percent. The per capita farmland is comparatively small in the affected townships, ranging from 0.11 to 0.19 mu per person. So there are few people who solely rely on farmland to make a living. Industrial output is the most important income source for the affected villages, accounting for 77 to 90 percent of total gross output value. Of the affected villages, the agricultural revenue accounts for a very small proportion of the total output value, with the highest being less than 20 percent. China’s opening-up and reform policy has brought vitality to township entrepreneurs, especially in recent years, with the growing of private investments, the township enterprises have continuously flourished. Among those affected households by land acquisition, many of them do not rely on farmland as their main sources of income. Instead, most farmers are now working in various non-farm sectors, such as industry, transportation and construction activities. Fewer and fewer people in the affected villages are cultivating farmland. Under this situation, the limited loss of farmland will not have serious impacts on the income and livelihood of the affected people, since most of them have already had involved in various non-farm activities with plenty of employment opportunities.

According to the preliminary survey, the inland river rehabilitation project would involve land acquisition of 1,106.8 mu including 169 mu from Cangshan Township, 592 mu from Gaishan Township, 106 mu from Luozhou Township, and 240 mu from Chengmen Township. Such land acquisition will cause farmland reduction among these townships ranging from 8 percent in Louzhou Township to 22 percent in Cangshan Township. Such land loss would affect the agricultural production and income of some households. In average, each affected household would lose about 1.6 mu of farmland or 0.3 mu per person.

To mitigate such impacts, a range of measures will be taken by the project owner. They include (1) provide generous compensations for the lost land; (2) arrange non-farm employment opportunities for the affected farmers; and (3) provide other rehabilitation assistance during the process. The combination of these measures will ensure that affected households and persons will restore or improve their income to their previous levels.

(1) Adequate Compensation

66

Following local regulations, generous compensation rates will be provided for affected farmland, which ranges from Y75,072 per mu for paddy, Y76,160 for fruit garden, Y88,009 per mu for fish pond, and Y40,400 per mu for woodland and other land. Based on these compensation rates, a total of Y86.48 million will be provided for the acquisition of 1,106.8 mu of land areas, averaging Y78,136 per mu. Given the fact that there are very small land holdings among the affected villages, and most of persons in these villages are no longer relying on agriculture, there is little chance to have land readjustment after land acquisition among these villages. Based on discussions with Fuzhou City Land Administration Bureau and relevant local officials, the common practice of compensation and rehabilitation for land acquisition is to deliver most of compensations to the affected households, which include compensation for green crops, resettlement subsidy and part of land compensation.

Assuming 20 percent of land compensation will be kept by the affected village groups to be used for collective welfare, the affected households could receive up to 80 percent of land compensation, averaging Y62,500 per mu. Based on average amount of land loss for each affected household, the received cash compensation for each affected household could be around Y100,000, which will be about 25 times of average annual output value. These cash compensations will provide sufficient funding for affected persons to engage in various non-farm activities and to restore their livelihood and incomes to their previous levels.

(2) Non-farm Employment Opportunities

With reduction of farmland, some the affected persons will be transferred to non-farm activities. They could either use cash compensations to start small businesses or to find appropriate non-farm jobs. The affected villages are located in the Cangshan District, where there are a number of industrial districts with many factories. According to one estimate that in Cangshan District there are at least 900 low skill jobs available. Most of them are concentrated on shoe manufactures, florist, security, domestic servants, and restaurants, with average wages being Y700 per month. Quite a few of these factories are located in the same villages and townships. The relevant district and township governments will provide necessary assistances, such as technical training and job introduction for the affected people to obtain appropriate employment.

In addition, the project owner will also provide some non-technical employment opportunities when the inland river rehabilitation works are completed, which are mainly concentrated on inland river maintenance and landscaping activities. According to the estimate by the project owner, 270 such employment opportunities will be created with 90 positions for river maintenance and 180 positions for landscaping along these rivers. The average wage would be Y800 per month. The land loss farmers will be given priority for having these jobs.

67 (3) Other Rehabilitation Assistance

For the affected villages, they will directly benefit from the project, which will involve cleaning polluted rivers, building sewer lines and installing wastewater treatment capacity. In addition to an improved sanitation and living environment brought by the project, the affected villages could also use the part of land compensation fund (Y17.3 million or Y540,000 per village) to enhance village welfare and improve community services, such as increase living allowance for the elderly and vulnerable and education subsidy for the school age children.

5.3.5 Restoration of Special Facilities and Infrastructure

All necessary special facilities and infrastructure will be restored at the resettlement sites at least up to a standard equal to the standard at the original location; the compensation for all special facilities and infrastructure will be sufficient to reconstruct it to the same quality.

The relevant government organizations will be responsible for the reconstruction of infrastructure and facilities in the resettlement area. Before the relocation, the governments shall complete the land acquisition, earth excavation engineering, road, water supply, power supply, telecommunication, greening and so on. All of the investment will come from the compensation funds for the basic infrastructure and facilities.

5.3.6 Rehabilitation Plan for Vulnerable Groups

In the affected area, no minority groups have been identified. However, there are 13 households that are under the poverty line; 67 households as tenants and 461 households without legal house certificates. The project resettlement office will provide them with special assistance and support, such as resettlement assistance fund at RMB 2,000. For the households without legal certificates, they will be treated as the same with the legal owners in terms of compensation and resettlement assistance. The tenant households will be guaranteed of a rental contract equal to the remaining of their previous contract. Contractual terms will be equivalent to those of the old contract.

5.3.7 Assistance during Resettlement Process

During the process of resettlement and rehabilitation, the responsible units in charge of land acquisition and resettlement will provide all necessary assistance to the resettlers:

1) Before resettlement, the needs and expectation of the relocated households will be solicited, and every effort will be made to meet their requirements as much as possible.

68 2) During the process of relocation, the relocated households will be assisted with the matters that may occur. The responsible unit will make contacts for transport trucks and help with relocation, if necessary. 3) After resettlement, further consultations should be carried out to investigate the living condition and any difficulties that may be encountered by the resettlers, and resolve them in a timely and satisfactory fashion. 5.3.8 Potential Risks

Even though the LAR Program has been prepared on the basis of extensive investigations and consultations, a number of factors can still probably affect the outcome, particularly the income and living conditions of the APs. The owners and local governments (district governments or village committees) should pay great attention and adopt the effective measures to avoid the possible decline of their income. It is hoped that through such efforts, the income of affected people will be improved or at least restored to the original level.

In order to mitigate the potential risk of resettlement, it is important to have a sufficient contingency fund. If there is any possibility of income decrease, the Fuzhou Urban Visual Construction and Development Company will coordinate with local government to utilize the contingency fund properly and identify feasible option for APs to restore their income and ensure their living standard will not be decreased.

69 Chapter 6 Environment Protection and Management of the Project

6.1 Necessity of Environment Protection

Modern Construction should be aimed at sustainable economic development、social civilization progress, improvement of peoples’ living standard and biological environment.

Development of Nantai Island plays a key role in the development strategy of “expanding eastward and southward” based on the master plan of Fuzhou city. It will bring good opportunity to urban development, at the same time it will also bring opportunity and challenge to environment protection work. Crisscross Inland rivers of Nantai Island is connected with Min river and plays a role of flood release and control and shipping. It was once one of natural landscape of Fuzhou city in the history. However, owing to the growth of urban population, development of industry and poor management, the inland river environment has suffered from a heavy pollution. Presently the inland rivers smell badly and have a serious flood every time when it rains. Therefore, Inland river rehabilitation project is imperative to the development of Nantai Island and creation of a good socioeconomic environment. This project will significantly improve the water quality and the living environment of local people, make a better landscape and strengthen the capacity of flood control to reduce the damage of flood. This project will create good social and environmental benefits while it may make some negative impacts on the environment and local communities of the project area as a result of construction and resettlement during the construction period. Therefore, effective measures should be taken to protect the environment during the construction period in order to keep the negative impact at a lowest level and enable the project to create greatest environment, economic and social benefits and make solid foundation for sustainable development of Nantai island and Fuzhou City.

6.2 Environment Impact and Mitigation Measures of the Affected Area

6.2.1 Environment Impact of the Project

Owing to the fact that this project will change the environment features of the inland rivers, this project will inevitably result in some impacts on biological and social environment.

1. Biological Environment Impact

Biological Environment Impact of the project is mainly made during the construction period. It covers the following aspects:

(1) Environment Impact caused by land acquisition during project construction period.. (2) A great deal of earth excavation work will make certain impact on vegetation and may bring along running off of water and soil and have negative impact on inland river water quality, farmland, plant and aquatic life as well as urban sanitation.

70 (3) The project will also have some impact on aquatic environment, such as the discharge of domestic wastewater by the construction workers, increase of pollutants due to disturbance of sludge at the bottom of the river and drainage on sludge storage site. It may affect the water quality of inland rivers and Min river especially the water quality at the water intake of WWTP at the downstream of Min River and the outlet of the inland river.

(4) Noise caused by the construction will have some impact on the environment. Most of the noise comes from the opertion of construction machinery. The affected area is within 200 m away from the construction site and about 50m~100 m away from the site during the day time. at the same time, the transportation of construction materials will result in increase of vehicles around the site and the noise of vehicles will cause some impact on the environment along the road close to the site.

(5) Solid waste caused by the construction including garbage, domestic garbage and sludge cleared from the rivers will result in some impact on the environment.

(6) The atmospheric pollutants caused by the construction is mainly dust from the earthwork excavation and filling, vehicle transportation, the tail gas of vehicles and the waste gases containing NO2, CO and hydrocarbon emitted by construction machinery. The pollutants will make some impact on the air quality in the surrounding area.

2. Social Environment Impact

Resettlement of the affected people will result in some social environment impact. The resettlement of this project involves 43 villages, 4 towns and 1 street. In total, 1,104 families or 4,858 people will have to be resettled. The construction of the project will have some social environment impact on peoples’ living and working, traffic, commercial activities, public sanitation and other municipal facilities and infrastructures.

6.2.2 Environmental Protection Measures

The following environmental protection measures will be taken during the construction of the project.

1. During the stage of feasibility study, design, construction and operation of this project, relevant regulations should be followed to make reasonable environment impact assessment. Effective measures should be taken to protect environment and mitigate the negative impact on environment. The outline of EIA report of this project has been completed in July 2003 and the project implementing agency has engaged Fuzhou Environment Science Research Institute to conduct the environment impact assessment during the same period of ADB PPTA.

2. The affected people should be participated in the preparation of resettlement plan and their preferences should be sufficiently respected. The resettlement of the affected people

71 should be arranged based on the principle of resettlement before dismantling their houses. Justified and reasonable compensation should be made in compliance with “Management Method of Houses Demolition and Resettlement of the Fuzhou City” and ADB policies. Assistance should be provided to those affected people in order to keep the stability of social environment.

3. Terms and conditions of environment protection should be clearly stipulated in the construction contracts singed between IA and the contractors. The contractors should be required to take measures to protect the environment from pollution caused by the construction.

4. During the survey and design stage, guideline of reducing the arable land occupation and mitigating the impact on environment has been followed to select the design scheme which is most favorable for environment protection. At the same time, efforts should be made to further reduce the number of affected people and land acquisition. Investment in environment protection facilities should be guaranteed.

5. Importance should be paid to the environment protection during the design and construction stage of the project. Environment quality supervision and effective measure should be taken during the construction period according to the environment monitoring report to improve the facilities and mitigate the environment pollution to the largest extent.

6. In order to mitigate the environmental impact caused by wastewater, waster gas, noise, solid waste and running off of water and soil, the construction unit should be required to submit before bidding for the project or starting construction a detailed construction plan including working hour, working schedule, list of utilized machinery and labour force. Effective measures should be taken to mitigate the environment impact of the project by strengthening the management of construction, adjusting the working hour, selecting advanced equipment and construction method and taking appropriate protection measures.

7. Inland River Environment Protection Management Agency should be established after the construction is completed. Management measures should be put into effect. At the same time, the sewage network system of Nantai island should be improved as soon as possible to collect the wastewater from the areas along the inland rivers and connect it into the municipal sewage treatment system.

6.3 House Demolition and Site Clearance

The resettlement of this project involves 43 villages, 4 towns and 1 street. In total, 1,104 families or 4,858 people and 81 enterprises and 6 shops will have to be relocated. Different types of houses including houses, companies, stores and public buildings will be dismantled. Resettlement and site clearance is directly related to the progress and environment protection of the project. Criterion and standard of site clearance and specific program of house demolition and site clearance, solid waste classification and clearance should be

72 established. The resettlement implementing agency should be required to work effectively based on the criterion and standard and the working staff should be trained. Responsibility system should be established to monitor and control the whole process of resettlement and site clearance in order to guarantee the quality of resettlement and environment protection.

6.4 Environmental Management of Resettlement Area

Based on the survey, most of the resettled people would like to be relocated in the same village. Some people have selected to be resettled in the neighbouring Jinshan Living Area. Local government and village collectives will be responsible for providing appropriate land to 780 families who choose to build their houses. Economy houses will be provided by the government to the 210 families who have selected to be relocated in neighbouring area (like Jinshan Living Area and Jinpu Living Area).

In order to create a clean, beautiful and tidy environment in the resettlement area and to guarantee the normal work and life of the affected people, environmental management of the resettlement area will be carried out based on the progress of the project in the following aspects:

1. Specific management measures will be proposed regarding resettlement on the plot and resettlement on another place. Carrying capacity analysis of the resettled population will be made and detailed program of resettlement will be prepared.

2. National policy of environment protection and guideline of pollution prevention and control should be followed. The improvement of resettled area and region’s biological environment should be combined. Program of water supply and drainage, power supply, postal service, environment sanitation, fire prevention, trees and flowers planting should be made based on national criteria of average construction land utilization, residential building and public buildings and road in order to guarantee the stability and development of the living and working of APs after being resettled.

3. Health protection program of the affected people should be made. Health monitoring should be strengthened before and after the resettlement. The living environment should be cleared before the affected people are relocated in new houses. The management of construction and domestic garbage should be strengthened in order to prevent the spread of diseases. The drinking water source of relocated living area should be protected from pollution. All of the new drinking water source should be tested to find out if it meets the national sanitary criteria. Health protection system should be established in the relocated living area to improve the medical service and epidemic prevention of the area. Health departments at municipal and district levels will participate in this work.

4. Importance should be paid to the development of land resources and environment protection in the process of resettlement and effective measures should be taken to prevent running off of water and soil and the damage to the existing plants. Those affected people

73 who will take on-site resettlement should build new houses in compliance with the unified program. The disposal of solid waste should be made based on the process stipulated by relevant departments and comprehensive utilization and collective treatment should be done. Public green lands and parks should be built and trees and flowers should be planted in the resettlement area.

5. The environment quality of the resettlement area should meet the national criteria and requirement. The disposal of solid waste, drainage and treatment of domestic wastewater and garbage should be included in the unified management of municipal environment sanitation system.

6.5 Monitoring of Environment, Sanitation and Epidemic Prevention

Construction Period

As short-term negative environment impact will be made by the project during the construction period, the environment and sanitation situation during the construction period should be monitored in addition to environment protection program during the design of construction arrangement.

The monitoring indicators include:

Water: The water quality monitoring includes the spot where domestic wastewater discharge by the construction workers, the increase of pollutants due to disturbance of sludge at the bottom of the river and drainage on sludge storage site. It may affect the water quality of inland rivers and Min river, especially the water quality at the water intake of WWTP at the downstream of Min River and the outlet of the inland river.

TSP (Total Suspended Particles) of Atmosphere: The atmosphere pollutants caused by the construction is mainly dust, which should be the major monitoring indicator. The tail gas of vehicles and the waste gases containing NO2、CO and hydrocarbon emitted by construction machinery may have some impact on air quality in the surrounding area. The monitoring indicators should be selected based on the discharge criterion and environment protection standard of local area and the suggestion of the local environment monitoring department.

Noise: The noise affected area is within 200 m away from the construction site and about 50m~100 m away from the site during the day time. The monitoring of noise should be focused on those noise sensitive areas such as living quarters, schools and hospitals.

Environment Sanitation and Epidemic Prevention: The solid waste caused by the construction including construction garbage, domestic garbage and sludge cleared from the rivers. Their disposal should be carried out based on the approved construction arrangement program. Background survey and monitoring of epidemic prevention should be done if possible. The monitoring item may include the intestines disease or disease caused by

74 mosquitoes. The health and epidemic prevention department should participate in this work.

The solid waste caused by the construction including construction garbage, domestic garbage and sludge cleared from the rivers will result in some impacts on the environment.

Completion of the Project Construction

The monitoring of aquatic environment quality improvement should be done after the project construction is completed.

Environment Monitoring Agency and Cycle

The project owner can do the monitoring by itself if possible. Otherwise the environmental monitoring agency could be engaged to do the work. The monitoring cycle and frequency can be recommended by the monitoring agency but it should be no less than two times per year.

75 Chapter 7 Public Disclosure, Consultation and Participation

7.1 Public Participation/Consultation

Surveys show that the APs and relevant community members support the construction of the project although some of them oppose it as a result of being not aware of the significance and schedule of the implementation of the project. However, the APs will know and understand the project with the deepening of the publicity and information dissemination. Therefore, publicity and dissemination should be strengthened before or at the period of the implementation of the RP. During the process of resettlement, communication and consultation have been made with the affected townships and villages, and APs. At present, based on the resettlement policy and requirements of protecting the APs’ entitlements, Fuzhou Municipal Management Regulatory Bureau and Fuzhou Visual Construction & Developing Company have worked on the preparation of the resettlement information booklet (RIB) and will distribute it to the APs to make them aware of: 1) applicable policies and regulations; 2) compensation and entitlements; 3) plans to restore their income and living standards during the post-resettlement period. This will enhance the transparency of the resettlement work. The brochure includes the following parts:

- Brief information on the project, such as constructional scale and content of the project to make the APs gain an understanding of the importance and necessity of the project, socioeconomic and environmental benefits of the project; - Scope of the impact of the project, investigation and identification of the sources of impact and pollution; - National Land Administrative Law, including the obligations, duties and rights of the both parties of project owner and the APs, to make the APs gain an understanding of other relevant policies and regulations, the resettlement principles and ADB’s resettlement policy; - Compensation standards and entitlements; - Income and livelihood restoration plan/options; - Grievance and appeal procedure; - The roles of the township government and village committee. A Resettlement Committee has been established in every affected administrative village participated by the villagers’ committee members and the APs with the leader of the village as the person-in-charge. - Resettlement implementation schedule

7.2 Public Participation during the Preparation of the RP

During the process of preparation of the RP, the main activities of public participation included: z From June to August, 2003, an investigation team organized by Fuzhou Municipal Urban Management Regulatory Bureau have conducted field investigations and

76 measurement surveys for twice. z In total 250 households were selected for random household survey in the areas of the 13 inland rivers. The households surveyed expressed explicitly their opinions on the construction of the project and preferred options for destinations of resettlement and ways of relocation. The survey result indicates that about 79.2% of the surveyed households supported the construction of the project, and over 50% thought that the project would play a positive role in improving the local environment, pushing forward the investment environment and overall development, stimulating the development of local real estate and promoting the development of local tourism. The result of the socio-economic survey also shows that 7% of the APs surveyed were aware of this project as early as five years ago, 8% knew this project 1-3 years ago, 34% within half year, and 51% during surveys only. z During the process of the survey, 50% of the APs surveyed just got to know about the Fuzhou Environmental Improvement Project, 6% and 6.4% through newspaper and television, respectively, and 7% the resettlement investigators. Until the end of the survey, there is no one who does not know they will be relocated. z During the survey, information dissemination and home visits made by the cadres of affected towns and villages. The attitudes and opinion of the APs on land acquisition and resettlement have been obtained as follows: the APs require to be consulted on policies and fair compensation. They hope the compensation can be transparent to the pubic, and accept the supervision and monitoring from various circles. The APs request to be compensated on the basis of the relevant laws and regulations. The APs hope that the loss of illegal buildings can be compensated.

During the period of ADB PPTA, the pubic participation activities conducted mainly include:

¾ Between June 23 and 24, 2003: A survey on public participation was organized by Fuzhou Municipal Urban Management Regulatory Bureau to conduct on-the-spot interviews and household visits of 100 people. ¾ Between June 23 and July 2, 2003: Fuzhou Inland Rivers Administration Office and Cangshan District Urban Management Regulatory Bureau jointly conducted the first investigation on the resettlement of the six (6) inland rivers. ¾ Between July 3 and July 20, 2003: Fuzhou Municipal Urban Management Regulatory Bureau engaged the Fuzhou Socio-economic Survey Team (FSST) to conduct a random sample survey on the affected households, totalling 250 households. ¾ On July 4, 2003: Fuzhou Municipal Urban Management Regulatory Bureau and Fuzhou Inland River Administration Office organized a pubic meeting participated by the representatives of the affected township and villages, and enterprises affected by the project. The details are presented in Appendix III. ¾ On August 4, 2003: Officials and ADB PPTA experts made an on-site investigation

77 accompanied by officials from Fuzhou Proejct Management Office (FPMO), Fuzhou Municipal Urban Management Regulatory Bureau and Fuzhou Inland River Administration Office, government of Cangshan District, etc. ¾ Between August 6 and 20, 2003: Fuzhou Municipal Engineering Consulting Company, supported by the IA and the relevant departments, conducted a second field survey on the affected land, houses, enterprises, shops, etc. within the area affected by the project of 13 inland rivers. ¾ Focus group discussion during the ADB PPTA period. ¾ On August 12, 2003, Fuzhou Municipal Urban Management Regulatory Bureau organized a consultation meeting on the rehabilitation and restoration plan of inland rivers project. The details are provided in Appendix IV. ¾ Two public consultation workshops on environmental and resettlement impacts were held during the project preparation. The first workshop was held on August 6, 2003, and the second workshop was conducted on November 13, 2003. Over 110 persons participated in the workshops, including the EA and IAs, design institutes, Fuzhou residents, representatives of APs, Fuzhou Land Administration Bureau, woman’s organization, representatives of local People’s Congress (Gulou, Taijiang and Jian’an Districts), Political Consultative Conference, industrial, commercial and religious sectors, high school and college students, woman’s organization, and others. In the workshops, the participants voiced concern about environmental impacts and mitigation measures during the project implementation as well as land acquisition and resettlement. The result of the workshop survey shows that 6.25% think the project will greatly benefit local development, 56.66% somewhat, 21.02% not much and 1.23% no opinion. And 9.09% of the respondents think the project will do great good to local social development, compared to 59.10% who think it will do some good, 17.61% who think the project will not do much, and 1.23% who did not express any views. No respondents think that the project will exert an adverse impact on local economic and social development.

The survey results also show that the public agrees to the necessity of the Project, and express their support to the Project, and wish to see an early start of the construction of the Project. About 42.61% of the affected people require to be compensated according to the relevant state policy, 18.75% hope that there can be an alternative construction site for the Project, 1.7% do not ask for compensation, 27.85% hope to take measures on environmental protection and 9.09% do not express their opinions.

In total, 56.58% of the participants consider the impacts of land acquisition and resettlement are just so-so, 17.11% not serious, and 3.95% serious. In total, 38.1% of the participants are concerned about fair compensation, 2.63% worse-off of living standards, 40.79% proper resettlement, 3.95% income decrease, 42% proper and feasible rehabilitation schemes.

The participants expressed that land acquisition is a big issue, which involves economic and housing problems, it is not an easy task to find suitable resettlement sites and

78 arrangements, therefore detailed plans should be prepared. The land acquisition due to engineering as well as costs should be minimized. The agricultural land should be protected at maximum. Proper resettlement should be ensured for the relocated households to avoid the worse-off of the APs. Preferential measures should be provided to APs. The compensation should be in place timely.

7.3 Distribution of the RP & Resettlement Brochure

Based on the resettlement policy and entitlement matrix, Fuzhou Municipal Management Regulatory Bureau will prepare and distribute resettlement information booklet (RIB) (in Chinese version) to the APs to inform them of: 1) applicable policies and regulations; 2) entitlements and compensation standards; and 3) plans to restore their income and living standards during the post-resettlement period. This will enhance the transparency of the land acquisition and resettlement work. The brochure includes a brief introduction to the project (i.e., the major engineering components, scope, benefits and implementation schedule), the scope of the Project impacts, Chinese laws and regulation of land acquisition and house demolition, compensation standards and entitlements, appeal procedure, income restoration plan, budget and LAR implementation schedule, and so on.

The brochure was distributed to all of the APs and village committees by August 2004. The public consultation for disclosure of the RP is presented in Table 7-1.

Table 7-1. Public Consultation for Disclosure of the RP to Affected People Activities Target Time Purpose Distribution of RIB All APs August 1, 2004 Community Meetings All APs August 5, 2004 Issue discussion on the land acquisition and resettlement Individual Household Visits APs Selected August 5-10, 2004 Issue discussion on the land acquisition and resettlement Community Consultations All APs August 11-12, 2004 Community Consultations on resettlement plan and income restoration plan

7.4 Public Participation Plan

In order to address the problems and needs of the APs properly and timely regarding land acquisition and resettlement, further consultation with the APs will continue so that all issues may be addressed prior to the start of construction and implementation of the RP. The meetings will be arranged by the LAR implementing agencies, as appropriate. Each affected household will have the opportunity to negotiate a valuation contract, which they will sign with the respective LAR implementing agencies. Shown in Table 7-2 is the Public Participation Plan during the Implementing Process of the RP.

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Table 7-2 Plan for Public Information and Consultation Purpose Format of Even Timing Implementing Agencies Targets Remarks of Event 1. Provide briefings on Public meetings Completion of PPTA Executing agencies, All the APs the Project & RP and district governments, solicit comments from village committees the APs. 2. Present final RP to the Pubic and Drafting the final report IA, district and All the APs APs community and implementation governments, village meetings committees 3. Inform the beneficiaries Community Approval of the loan IA Stakeholders/ Meetings with the of the progress, final meetings Beneficiaries, beneficiaries and design and schedule of APs APs the project 4. Conduct the final Household Before Implementation IA, district governments, All the APs Inventory of all the surveys on resettlement interviews, site village committees assets and land and assets investigations 5. Inform the APs of Pubic meetings Before Implementation IA, district governments, All the APs Meetings to inform entitlements and the date village committees the entitlements for compensation payment 6. Monitoring on the APs, Household During Implementation IA, district governments, Random samples Identify if there is beneficiaries and Interviews village committees, need for additional health impacts independent monitors support

80 Chapter 8 Organizational Structure

A key element to the successful implementation of resettlement is a proper organizational structure. The agencies concerned will be entrusted with matters such as planning, implementation of land acquisition, compensation, resettlement, income restoration and livelihood rehabilitation, and so on.

The design of the organizational structure for the LAR has been completed (see Figure 8-1). The tasks and responsibilities of the primary agencies are presented in the following sections.

8.1 Fuzhou Urban Visual Construction and Development Company

The Fuzhou Urban Visual Construction and Development Company (FUVCDC) will have the overall responsibility for the planning and implementation of the LAR.

A resettlement office will be established in the company. Composed of 20 staff members, the office will be responsible for the day-to-day implementation and coordination of the LAR program. It is recommended that there should be at least half female among the team. Table 8-1 provides the composition and qualifications of staff member for FUVCDC.

The major responsibilities of the implementing agency include: z Consult with the technical design institute on the possible measures that can minimize the land acquisition and resettlement through proper design and adjustment of location. z Carry out thorough resettlement investigations, together with the related government. z Apply for license of land acquisition. z Apply for house demolition license. z Develop the budget and disburse the resettlement costs. z Coordinate the implementation of the LAR. z Develop special measures for income restoration for the APs if required. z Carry out internal supervision for implementation of the LAR. z Engage an external agency (Fuzhou Municipal Engineering Consulting Company or another institute) to monitor and evaluate the LAR. z Examine the M&E reports and take necessary remedial measures.

81 Figure 8-1 Land Acquisition and Resettlement Organizational Structure

Land Acquisition and Resettlement Leading

Group

Resettlement Coordination Group

FUVCDC

Fuzhou House Demolition Engineering Office

Township

Government

Village Committee

APs

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Table 8-1 Composition and Qualifications of Staff Members for FUVCDC Position Sex Educational Background Work Experience Director Male Higher than university Deputy Director Male Higher than university > 5 years of resettlement work Deputy Director Female Higher than university Accountant Female Higher than secondary school Ordinary staff Male Higher than secondary school > 2 years for resettlement work (13 persons) Ordinary staff Female Higher than secondary school > 2 years for resettlement work (13 persons)

8.2 Fuzhou House Demolition Engineering Office

It is regulated in Article Eleven of Fuzhou Municipal Urban Housing Demolition Management Regulations that the House Demolition Qualification Certificate is a must for the implementation of demolition. An agency without the qualification certificate must entrust an agency with the certificate to implement demolition8. The affected people have the right to refuse the negotiation on the demolition with staff without the demolition credentials.

The project will authorize the Fuzhou House Demolition Engineering Office for the implementation of the LAR. The FHDEO will establish an office with 8 staff members responsible for land acquisition and resettlement, it is recommended that at least half of which should be female. Table 8-2 provides the composition and qualifications of staff member for FHDEO.

The major responsibilities of the Office are: z Carry out thorough resettlement investigations, together with the village committees. z Negotiate the compensation rates with the implementing agency. z Sign the land acquisition and resettlement agreement and the compensation agreement with the township government/district government. z Consult related government departments and the village committees on the compensation rates, and sign the resettlement and compensation agreement. z Negotiate the compensation rates with the affected people concerning houses, relocation and transportation costs, and sign the resettlement agreement and the compensation agreement. z Disburse the payment of compensation to APs through township/district government.

8 It does not include to demolish the houses by APs’ themselves and auxiliaries.

83 z Assist the affected people with income restoration and livelihood rehabilitation. z Assist the unemployed for job opportunities, together with the labour service center and enterprises. z Offer necessary help to the APs during the resettlement. z Settle appeals concerning compensation and resettlement. z Carry out internal supervision and monitoring of the LAR implementation. z Prepare the internal supervision report and take remedial measures if necessary.

Table 8-2 Composition and Qualifications of Staff Members for FHDEO Position Sex Educational Background Work Experience Director Male Higher than university Deputy Director Male Higher than university > 5 years of resettlement work Deputy Director Female Higher than university Accountant Female Higher than secondary school Ordinary staff Male Higher than secondary school > 2 years for resettlement work (2 persons) Ordinary staff Female Higher than secondary school > 2 years for resettlement work (2 persons)

8.3 Resettlement Office of Township Government

These offices will be led by the township government leaders in charge and are composed of key cadres from land administration bureaus, police stations, civil affair bureaus and villages. Their main responsibilities are: z To participate in the investigation of the Project and assist the preparation of Resettlement Plan; z To organize people to participate and make them understand the resettlement policies; z To implement, examine, supervise and record resettlement activities of all resettlers in the township/district; z To handle the procedure of resettlers’ relocation; z To be responsible for disbursement and management of land compensation funds; z To supervise land acquisition, demolition of house and affiliated buildings, as well as relocation and house reconstruction; z To report the situation of land acquisition and resettlement to the Fuzhou land administration bureau and Fuzhou resettlement management office; z To solve any conflicts and problems that may occur during the LAR process.

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8.4 Village Committee and Village Groups

Their main responsibilities are as follows: z To participate in the survey of the socio-economic impacts. z To organize public consultations and make them understand the LAR policies. z To select the host resettlement sites and allocate the residential sites to the relocated households. z To carry out land reclamation, adjustment and allocation, to organize resettlement activities like production rehabilitation and development. z To be responsible for disbursement and management of funds. z To report resettlers’ comments and suggestions to relevant departments. z To report resettlement implementation progress. z To provide assistance to households with financial and other hardship.

8.5 LAR Leading Group

The leading group will be composed of the representatives of the Fuzhou municipal government, implementing agency, the project responsible authority and the land acquisition and resettlement authority. It will provide policy guidance and supervision of the LAR Program.

The major specific responsibilities of the leading group are:

„ Review and approve the LAR Plan, including activities, budget, schedule and organization; „ Review and approve progress and monitoring reports. „ Review any appeal cases, and propose measures of resolution.

8.6 Resettlement Coordination Group

The Resettlement Coordination Group is responsible for the coordination and supervision of resettlement. It will consist of the male and female representatives of the affected people, representatives of the affected communities, leaders of the village committees, the land management bureau, the Fuzhou Municipal Real Estate Management Bureau, the women’s federation, the Environmental Protection Bureau, civil affairs bureau, the construction contractors, and APs, including representatives of poor households, floating population, illegal house owners, and workers.

85 The Resettlement Coordination Group will convene the initial meeting at least 6 months before implementation of the project and a regular meeting every two months afterwards till two years after the completion of the project. The Resettlement Coordination Group will be led by the FUVCDC.

The major responsibilities of the Resettlement Coordination Group are: z Settle any appeals concerning compensation and resettlement. z Develop and implement income generation and poverty alleviation measures, if necessary. z Carry out the public participation program. z Propose additional or remedial measures if necessary.

8.7 Non-Governmental Organizations

Women’s Federation as a quasi NGO will be invited to join the resettlement work to serve as a non-governmental organization for the Project and strengthen the supervision on the LAR Program.

8.8 Staffing

In order that the resettlement will operate smoothly, the responsible resettlement organizations at various levels will assign competent and devoted staff to form a channel for the free flow of information from bottom-up, with 120 staff. The staff of resettlement organization will be composed of sufficient qualified administrative officers and professionals, with certain working experience in land acquisition and resettlement. Table 8-3 presents the staffing arrangement of different organizations involved in LAR implementation.

Table 8-3 Staffing Arrangements of Organizations For LAR Implementation Department No. of People Note FUVCDC 20 Different fields Engineering management of house demolition FHDEC 8 and resettlement Implementation and management of land Government of Cangshan District 4 acquisition, house demolition and resettlement Governments of township and Implementation and management of land 8 villages acquisition, house demolition and resettlement Implementation and management of land Villager committees 80 acquisition, house demolition and resettlement. TOTAL 120

86 8.9 Facilities

Resettlement organizations at various levels will be provided with office equipment, transportation facilities, tele-communication equipment and so on, as well as air-conditioner, desks and chairs, computers, printers, telephones, fax machines and vehicles.

8.10 LAR Staff Training

It is very important to offer the resettlement staff full training. The training program will take two weeks, the contents of which include principles, methods, consultation techniques, etc., and simulated exercises as well. During the implementation period, the implementing agency should keep close contact with governments at different levels and the Fuzhou Project Management Office (FPMO) timely discover the problems and refer them to the leading group and the resettlement coordination team so as to raise their attention.

One of the major responsibilities of the resettlement staff of the LAR implementation agency of resettlement is to carry out the internal supervision of the resettlement plan. Before starting the site work concerning land acquisition and resettlement, special training on the internal supervision must be offered to the staff of the executing agency of resettlement by the international and domestic external monitors

The training contents will include:

„ Principles and policies of resettlement; „ Engineering planning management training; „ Planning and design; „ Implementation schedule management; „ Financial management; „ Management information system; „ Quality control; „ Monitoring and evaluation; „ Project management.

8.11 Production Rehabilitation/Skills Training for Resettlers

For those farmers who may not be familiar with the agriculture products in host communities and who may wish to grow economic crops, aquaculture, or

87 stockbreeding that they have not done before, training in agriculture production technologies should be offered. For those who will switch from farming activities to employment opportunities in local enterprises/businesses, training will be provided to them in the relevant technical fields. Assistance will also be offered to those resettlers who intend to find opportunities of employment in the second industry and the service sector. The training will be organized by the IA and the training costs will be covered by the compensation for land from the local township government.

For those affected workers whose jobs will be changed as a result of relocation, training will also be provided to them in the relevant technical fields. The training will be organized by the IA and affected enterprises and businesses and the costs will be covered by the IA from the training budget. Detailed training plan, including time, place, cost, speakers and topics will be developed during the land acquisition and resettlement implementation.

8.12 Institutional Strengthening

The following institutional strengthening measures are proposed:

„ To define the responsibilities and scope of resettlement organizations at all levels to strengthen supervision and management; „ To strengthen the capacity of resettlement organizations at all levels. All officers must have a certain level of professional and management proficiency, and the organizations shall be equipped with adequate equipment such as computer, detecting equipment, means of transportation and so on; „ To select staff strictly, enhance technical training, perform training for managers and technicians of resettlement organizations at all levels to improve their abilities in operation and management; „ To staff the offices with women, and provide them wit the opportunity to play a role for resettlement implementation; „ To set up database, intensify information feedback to expedite top-down and bottom-up information flow. The decision-making for resolution of important and major problems will be made by resettlements leading groups; „ To strengthen the reporting system and internal monitoring, and the timely resolution of problems; „ To establish external monitoring and evaluation mechanism and forecasting and warning system.

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Chapter 9 Grievance Procedure

9.1 Possible Grievance and Solution

The RP has taken into consideration of the overall planning of the resettlement based on the impacts of the whole project areas. However, during the implementation of RP, some complaints may be raised by the resettlers due to the changes of actual situation and deviation of operation. According to the past experiences, the major complaints include the issues of property indexes, compensation standards, compensation payment, and resettlement and rehabilitation plan.

9.2 Grievance Channels and Procedures

The active participation of APs in the preparation of the RP will serve to minimize grievances. But the need for appeals may emerge from time to time. In order to ensure the effective channeling and resolution of the grievances of APs, the following grievance procedure has been established:

(i) AP appeals to the village committee or APsGroup which is formed by the APs themsleves. (ii) If the village committee cannot resolve the issue within 10 days, it will be taken to any of the following agency: „ Respective resettlement office at district levels; „ Respective resettlement office at municipal level; „ Fuzhou Development and Reform Commission; or „ Independent Monitoring Agency. or „ Municipal appeal office; „ Municipal discipline committee. (iii) If the RP is not satisfied with the response then they have the legal right to submit the appeal to the court.

The grievance lodged by an affected person can relate to any aspect of the land acquisition and resettlement program, including the compensation rates being offered for their losses.

APs are informed of the above grievance and appeal procedure through public information meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal.

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An independent monitoring agency (IMA), Fuzhou Municipal Engineering Consulting Company, will be hired to inspect and report on the resettlement processes and the operation of the Resettlement Offices at different levels and correct any errors and mistakes made during the resettlement process. LAR implementation agencies should keep good records, and make them available to the external monitor for inspection and verification.

The grievance procedures are presented in Figure 9-1.

MUNICIPAL LEGAL JURIDICAL FUZHOU DEVELOPMENT AND

DEPT REFORM COMMISSION

MUNICIPAL DISCIPLINE CITY RESETTLEMENT OFFICE

COMMITTEE

CITY APPEAL OFFICE DISTRICT RESETTLEMENT INDEPENDENT M&E OFFICE MONITOR

VILLAGE COMMITTEE APS GROUP

AFFECTED HOUSEHOLD

Figure 9-1 Grievance Procedure

The affected people will be exempted from any fees that are normally involved in making complaints and claims. If they appeal to People’s Court, the affected people are entitled to be provided with legal consultation free of charge.

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Chapter 10 LAR Costs and Budget

10.1 Costs and Budget

All of the land acquisition and resettlement costs have been included in the total Project budget, which will be RMB 368,687,174. Gangtou River, Longjin River, and Yuejin River will be rehabilitated during the first year of project construction with the LAR cost estimated at RMB 118,929,596; Puxia River, Mazhou River, Yixu River and Baihuting River, will be rehabilitated during the second year with the LAR cost of RMB 140,320,885; Pandun River, Lianban River and Linpu River will be rehabilitated during the third year with the LAR costs of 54,804,920; and.Lulei River, Luocheng River, Luozhou River will be rehabilitated during the third year with the LAR cost of 55,631,773.

The detailed disbursement plan of the LAR budget has not available at this stage due to the present Project design processing. It will be made in next stage. The resettlement will be financed by the government through fiscal revenue. The annual LAR budget is presented in Table 10-1.

Table 10-1 Annual LAR Budget Name of Inland River to Be LAR Budget Year Rehabilitated (RMB) Gangtou River 2004 Longjin River 118,929,596 Yuejin River Puxia River Mazhou River 2005 140,320,885 Yixu River Baihuting River Lianban River 2006 Linpu River 54,804,920 Pandun River Lulei River 2007 Luocheng River 55,631,773 Luozhou River Total 368,687,174

The total LAR budget may be subject to adjustment with the progressing of the Project. The IA will submit the updated resettlement report to ADB for approval.

Detailed cost estimate of the land acquisition and resettlement is provided in Table 10-2.

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Table 10-2 Cost Estimate of LAR for Nantai Island Inland Rivers Rehabilitation Unit Items Quantity Unit Price TOTAL (RMB) (RMB) 1. Permanent Land Acquisition Vegetable Land 338.2 mu 75,072 25,389,350 Fish Pond 464.7 mu 88,009 40,897,782 Orchard Land 221.3 mu 76,160 16,854,208 Wood Land 17.6 mu 40,400 711,040 Others 64.9 mu 10,000 649,000 Subtotal 1,106.80 84,501,380 2. House Demolition 171,620,248 2.1 Residential Houses and Buildings Concrete & Steel 21,968 m2 950 20,869,600 Brick and Concrete 103,881 m2 740 76,871,940 Brick and Wood 32,732 m2 690 22,585,080 Mud and Wood 1,476 m2 560 826,560 Simple Structure 18,887 m2 490 9,254,630 Wood 12,137 m2 590 7,160,830 Subtotal 191,081 137,568,640 2.2 Auxiliaries Terrace 38,500 m2 40 1,540,000 Well 4 no. 400 1,600 Fence Wall 12,551 m 60 753,060 Iron Door 535 no. 100 53,500 Pig Pen 7,937 m2 45 357,165 Water Pool 102 no. 100 10,200 Temple 10 no. 400 4,000 Water Pump 69 no. 300 20,700 Tree D>10cm 186 no. 60 11,160 Tree with Fruit 4,153 no. 100 415,300 Tree without Fruit 2,874 no. 80 229,920 Subtotal 3,396,605 2.3 Household Facilities Electric Meter 1,104 No. 450 496,800 Water Meter 552 No. 70 38,640 Telephone 880 No. 216 190,080 Cable TV 950 No. 160 152,000 Subtotal 877,520 2.4 Transportation and Transfer

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Unit Items Quantity Unit Price TOTAL (RMB) (RMB) Allowance Transportation & Transfer Allowance 1,104 HH 500 552,000 Subsidy of Lost Working Day 1,104 HH 200 220,800 Loss of Transfer 1,104 HH 100 110,400 Medical Cost 1,104 HH 200 220,800

Subsidy for Transition 4,858 Person-Month 50 242,900

Subtotal 1,346,900 2.5 Non-Residential Houses and 25,424,583 Buildings for Enterprises and Shops A. Compensation for Structures Frame (Concrete and Steel) 6,953 m2 850 5,910,050 Brick and Concrete 8,852 m2 640 5,664,960 Brick and Wood 11,805 m2 590 6,964,832 Mud and Wood 1,870 m2 460 860,200 Wood 830 m2 490 406,700 Simple Structure 3,962 m2 390 1,545,180 Subtotal 21,351,922 B. Allowances for Enterprises and Shops Relocation Allowance of Shops 635 m2 10 6,350 Relocation Allowance of Enterprises 43,353 m2 10 433,530 Allowance of Shop Stoppage 26 3 mon/prs 437 34,086 Allowance of Enterprise Stoppage 2,745 3 month/prs 437 3,598,695 Subtotal 4,072,661 2.6 Public houses/Structures Hospital/Clinic 665 m2 300 199,500 School 540 m2 300 162,000 Village & Township Administration 8,815 m2 300 2,644,500 Office and Public Entertainment House Subtotal 3,006,000 3. Basic Infrastructures and Facilities Agricultural Products Market 200 m2 300 60,000 Village Road 16.7 Km 10,000 167,000 Bridge 46 No. 20,000 920,000 Road Lighting Pole 96 No. 250 24,000 High Voltage Pole (250 m) 21 no. 30,000 630,000 Low Voltage Pole (125 m) 60 no. 10,000 600,000 Telecom Pole (50 m) 53 no. 2,500 132,500

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Unit Items Quantity Unit Price TOTAL (RMB) (RMB) Fibre Optic Cable 2.2 Km 100,000 220,000 Transformer 14 No. 200,000 2,800,000 Water Supply Pipe 7,940 m 50 397,000 Cable TV 4,776 m 50 238,800 Public Toilet 567 m2 50 28,350 Bicycle Booth 265 m2 50 13,250 Electricity Machine Room 133 m3 100 13,300 Subtotal 6,244,200 4. Other Expenses Agent Fee and Administration of Land 1% of LAR 2,623,658 Acquisition Training 500,000 Subsidy of Vulnerable Group [small 22 HH 44,000 amount] 2000 Monitoring and Evaluation 1% of LAR 2,623,658 Subtotal 5,791,317 Subtotal of Item 1-4 268,157,144 5. Contingency Physical 10% of Item 1-4 26,815,714 Price 5% of Item 1-4 13,407,857 Subtotal 40,223,571 Taxes User Fee of Land Occupation for 1,106.80 mu 26,700 29,551,560 Construction Occupation of farmland 803 mu 5,333 4,282,399 Vegetable Land Reclamation 338.2 mu 35,000 11,837,000 Fish Pond Reclamation 464.7 mu 25,000 11,617,500 Provincial Land Management Fee 1,106.80 mu 1,000 1,106,800 Farmland Reclamation 238.9 mu 8,000 1,911,200 Subtotal 60,306,459 TOTAL 368,687,174

Note: According to the summary of the mayor meeting ( No.14 and No.15 of (2004)), the districts of Yixu and Guangtou, will be the development districts and old city rebuilding, those resettlement will be dealt with by the Fuzhou Land Development Centre, including in all land acquisition area of Gangtou River,Yixu River and Mazhou River, part land acquisition area of Longjin River (the east 2500m of South of Liuyi Road) and Baihuting River (the south 2300m of Pandun River). The detail as following: z Affected 539 households or 2064 persons.

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z Land acquisition: 121.1mu of vegetable plot, 343.3 mu of water pond, 83.7mu of garden plod, 7.0mu of woodland, and 14.2mu others. z House demolition: 7594 m2 of concrete-framed house, 37022m2 of concrete-brick house, 11916 m2 of brick-wood house, 1077 m2 of mud-wood, 10503 m2 of wood house,8975.1 m2 of simple structure. z Auxiliaries: 11690.5 m2 terrace, 2278.7m fence wall, 323iron door, 1529.2 m2 pig pen, 16 water pool, 4 temples, 14 water pumps, 33 trees (D>10cm),2293 trees with fruits, and 1088 trees without fruits. z Household facilities: 539 electric meters, 270 water meters, 430 telephones and 463 cable TVs. z House of the enterprises and shops: 3196.6 m2 of concrete-framed house, 3909.1m2 of concrete-brick house, 4178.2 m2 of brick-wood house, 870 m2 of mud-wood, 600 m2 of wood house, 1416.3 m2 of simple structure. z Public Facilities and infrastructures: 291 m2 of Hospitals/clinics, 324 m2 of schools, 2175 m2 of public activity buildings, 3.44km village road, 12 bridges, 42 street lighting poles, 7 high voltage pole, 18 low voltage poles, 31 communication poles, 0.2km of fiber optic cable, 8 transformers, 2359m water pipeline, 2008m of cable TV line, 237.8 m2 of public toilets, 85.2 m2 of bicycle booth, 95.7 m2 of electric machine room.

All cost of total is RMB167,999.7 thousand, the money will be paid by the Fuzhou Land Development Centre. The project (Total 13 inland rivers) cost of resettlement is RMB 368,687.2 thousand, except cost financed by the Fuzhou Land Development Centre, RMB 200,687.5 thousand of the cost financed by FUVCDC.

10.2 Disbursement of Funds

10.2.1 Disbursement Principles

The disbursement of LAR funds shall comply with the following principles: z All costs related to the LAR will be included in the overall project budget. The resettlement subsidy and related funds will be paid by the IA directly to the affected people and units. z To resettle APs before house demolition. Agreement shall be reached between the house demolition agency and APs before house demolition. z For those who take the cash compensation, the house demolition agency shall disposit the payment into the special account under the name of APs both with house certificate and without house certificate within 10 days of the agreement signed. z House compensation funds will be paid in installment to the affected household before new house construction. z Payment for land and other facilities will begin three months before the acquisition. z Different levels of financial and monitoring units should be established and operational to ensure that the LAR funds will be disbursed on schedule. z To ensure the successful implementation of LAR, the IA shall establish financial and monitoring institutions at various levels to ensure the LAR fund to be disbursed timely.

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10.2.2 Institutions in Charge of the LAR Funds z The institution responsible for the land compensation will be the project IA and the village committee. z The responsible institution for the house resettlement compensation will be the project IA and the village committee. z The fund will be disbursed from the Municipal Government to the IA and APs. Strict finance and auditing system will be enforced in each institution. The fund will be inspected and reported regarding its use and allocation.

10.3 Flow of Fund

The flow of fund is presented in Figure 10-1.

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Figure 10-1 Flow of Fund

Government Fund

Land compensation House compensation Monitoring & evaluation cost Resettlement subsidy Transport/transfer allowance Technical training cost Standing crops Enterprises/shops Administration cost Demolition Engineering cost

Fuzhou Urban Visual Construction Fuzhou Urban Visual Construction Fuzhou Urban Visual Construction and Development Company and Development Company and Development Company

Monitoring agency Technical training department LAR office of Township APs in urban area government

Village LAR Village LAR LAR office of Township LAR office of Township Demolition agency committee committee government government

APs Village LAR Enterprise/shop APs committee

APs in rural area

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10.3.1 Agreement Signing

• The House Demolition Agreement and the Land Acquisition Agreement should be signed according to the compensation policy and standard in the resettlement plan between the Resettlement Office of the Project IA and the Resettlement Office of township government. • The Resettlement Office of the township government will sign the Land Acquisition Agreement with the village committee of the project affected area. • The Resettlement Office of the township government will sign the House Demolition Agreement with the APs. • The compensation agreement will be signed by the enterprise and public facility and infrastructure institutions within their relevant jurisdiction.

10.3.2 Fund Disbursement

• The Fuzhou Visual Construction and Developing Company will disburse the LAR fund to the resettlement office and the APs by a lump-sum payment through the bank in accordance with the compensation items, quantity and time specified in the House Demolition Agreement. • The resettlement office of township government will disburse the land subsidy, resettlement subsidy and standing crops to the villager committee directly, and the village committee will provide the compensation payment of standing crops to the affected people.

An independent auditor will conduct annual audits of the disbursement of land acquisition and resettlement funds. A summary audit report will be submitted to ADB each year.

10.4 Inflation Allowance

The cost estimates in the LAR are based on the April 2004 prices. Annual adjustment in the cost estimates will be made based on the inflation rate for the past year. This adjustment will be made in the month of April every year. The rates of compensation payable to the affected persons and village committees will accordingly be adjusted annually, based on the actual inflation during the year. The inflation allowance and the need to adjust compensation rates annually will be stated in the resettlement compensation agreements with the various agencies. The overall project budget includes an allowance for price contingency for LAR activities at the rate of 5% for the duration of the Project.

10.5 Physical Contingencies

Physical contingencies have been included to provide for any local changes in design or alignment and for any unforeseen circumstances during RP implementation. The

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rate of physical contingencies budgeted for is 10% of the total cost of land acquisition and resettlement.

Fuzhou Urban Visual Construction and Development Company (FUVCDC) is responsible for the provision of adequate funds to carry out the implementation of the RP. If any cost over-runs of RP implementation would occur, FUVCDC will guarantee the provision of additional funds in a timely manner. The General Manager of FUVCDC is authorized to grant any non-budgeted expenditure with regard to the implementation of land acquisition and resettlement related activities.

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Chapter 11 Monitoring and Evaluation

In accordance with the requirements stipulated by Regulations on Construction Supervision enacted in 1995 by Ministry of Construction of PRC, the whole construction process should be properly supervised. It is also the requirement of the ADB that stringent monitoring and evaluation should be conducted. In line with this requirement and with an aim to ensure the successful implementation of the LAR, internal and external monitoring and evaluation should be carried out during and after the implementation of the project.

The Fuzhou Resettlement Office of the IA and Fuzhou Urban Visual Construction and Development Company will take full responsibility for the regular internal monitoring of the RP. While the external monitoring and evaluation will be undertaken by Fuzhou Municipal Engineering Consulting Company.

The monitoring and evaluation program will extend four years, from the commencement of the project till two years after relocation.

11.1 Objectives and Requirements of Monitoring and Evaluation

The objectives of monitoring and evaluation are to assess if the RP is implemented according to the schedule and within the budget, and if the goals and principals for resettlement are achieved. Monitoring and evaluation include at least the following parts: z Monitoring of the progress and efficiency of the implementation of the RP; z Monitoring and evaluation of the income restoration and post-resettlement conditions of the affected people and communities.

Specifically, monitoring and evaluation should focus on the following aspects of the conditions of the APs and the process of LAR. z Timely payment of LAR funds; z Environmental conditions; z Social adaptability after resettlement; z Living and economic conditions after resettlement.

The monitoring and evaluation program also includes the establishment of the socio-economic baseline of the APs before the actual land acquisition and relocation and the regular monitoring of the conditions for a period of two years after the resettlement. In addition, a quantitative and qualitative evaluation will be made on the living standards of the APs before the implementation of the Project.

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11.2 Internal Monitoring

During the RP implementation, the Resettlement Office of FUVCDC and FHDEO will collect and record the information of resettlement activities. In the overall internal monitoring framework, there will be continuous information circulation from the community level to the FHDEO and FUVCDC and periodic supervision and verification by the FHDEO and FUVCDC. The internal monitoring for the implementation of the RP will be undertaken every six weeks and this will continue till the end of the Project construction. During the post-resettlement period, it will be conducted every three months.

The major M&E criteria include: z Timely payment of various compensation fees; z Allocation of houses according to the preferences of the APs. The number of the people who have been provided with new houses within the set time and the distance between the new house and the original house should be recorded. In order to compare the standards of the new house with those of the original one, photographs should be taken and kept in the project file of every affected household. z Income restoration plan and implementation process; z Timely establishment of resettlement sites; z Inspection of the complaints registry and actions taken; z Evaluation of progress of income restoration and livelihood rehabilitation.

11.3 External Monitoring

In addition to the monitoring criteria above, external monitoring should be undertaken every six months during resettlement implementation and every year once resettlement has been completed. A baseline survey will be conducted at the beginning of the monitoring. All reports will be submitted to FHDEO and FUVCDC, and the ADB at the same time. The external monitoring agency will also provide training to the resettlement staff at different levels on best resettlement practices. To verify the quantitative aspect of implementation, various types of sample surveys on impact should be conducted on the basis of internal monitoring report to identify the progress reflected in the internal monitoring report and the accuracy of the report. z Sources of information:

„ FUVCDC and FHDEO „ Village Committees „ The APs

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z Channels to collect information:

„ Questionnaire surveys (20%); „ Visits and interviews with the affected households; „ Interviews with the Focus Group, such as the elderly, women affected by the LAR, with the aim to identify problems and issues.

The collected data and information should be analyzed according to types of affected areas, resettlement sites, duration of impacts, types of impacts, levels of compensation, resettlement process, and so on.

11.4 Major Responsibilities and Duties

The monitoring and evaluation program should focus on two aspects: 1) progress and guarantee of payment of entitled compensation to the APs; and 2) comparison of the social-economic conditions of the affected people and affected community before and after the resettlement.

The criteria for monitoring and evaluation include: z Disbursement of entitled compensation payments to the APs: compensation fees and replacement houses specified in the RP. z Socioeconomic development: re-employment opportunities available to the APs, number of the employed and unemployed APs. z Provision of alternative houses; z APs moving into alternative houses at least one month before relocation; z APs receiving moving subsidies and transportation subsidies in time; z Level of satisfaction of the APs; z Level of satisfaction of the APs with every aspect of the RP; z Operational efficiency of the appeal mechanisms; z During the whole process of implementation, the trend of the living standards should be observed and the potential problems in restoration of the living standards should be identified and included in the report. The external monitoring agency will conduct a comprehensive socio-economic survey after the implementation to gather information on the living standards and conditions of the APs after resettlement; z Social adaptability: impacts on children and other vulnerable groups, public participation, attitudes and reactions of the relocated APs towards the conditions after resettlement, numbers of complaints and appeals, preferential policies and income restoration measures, and improvement of the status of women.

11.5 Special Considerations

During the process of monitoring, special attentions should be paid to the vulnerable

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groups on the following aspects: z Status and role of women: The change of women’s status, role and situation will be closely monitored. The monitoring and evaluation agencies should provide relevant suggestions to the IA on women’s issues and assistance to women. z Vulnerable groups: The living conditions of the vulnerable groups after resettlement will be closely monitored to assist them to relieve of hardships. z The monitoring and evaluation should provide information on use and sufficiency of the resettlement funds.

11.6 Contents and Distribution of M&E Report

A monitoring report will include:

z M&E baseline survey of resettlement z Progress of land acquisition, house demolition and rehabilitation z Allocation of compensation funds z Usage of land compensation and resettlement subsidy z Usage of collective compensation funds z House demolition and re-construction/house purchase z Livelihood and income rehabilitation z Evaluation on capacity of the resettlement implementing agencies z Rehabilitation of vulnerable groups z Gender Issues z Participation and Consultation z Grievances and Appeals z Problems and suggestions z Levels of AP’s Satisfaction z Conclusion of evaluation; z Major existing and potential problems, including follow-up of problems previously identified; z Recommendations of mitigation or prevention measures.

The external monitoring will be undertaken every six (6) months. Fuzhou Municipal Engineering Consulting Company will provide the status reports semi-annually from the start of the implementation of RP to FHDEO and FUVCDC, the LAR Leading Group, LAR Resettlement Coordination Group, and village committees until the Project is completed.

FUVCDC will forward copies of reports to the Fuzhou project management office (FPMO), which in turn forward the reports in English to the ADB. FUVCDC and FHDEO shall ensure that information on the progress and status on all aspects of land acquisition and resettlement activities will be provided to Fuzhou Municipal Engineering Consulting Company for verifying the progress reports. FUVCDC will

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also submit a resettlement completion report to the ADB, to be followed by a post-resettlement impact evaluation reports by the monitors, which should provide further evidence whether adverse effects of the Project have been mitigated adequately, and at least “without project” income levels have been restored.

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Chapter 12 LAR Implementation Schedule

12.1 Principles of Scheduling Arrangements

The implementation of the LAR Program should be finished as early as possible to prepare for the start of the engineering works. Explanations should be provided to the affected people to obtain their understanding and support before the resettlement commences. At the same time, the resettlement implementation plan should be completed well in advance so that comments could be received from affected and interested parties, as well as to help the APs to know more about the related laws and policies.

12.2 Implementation Process

11.2.1 Final Confirmation of Property Inventory

The Fuzhou House Demolition Engineering Office is responsible for verifying all of the affected inventories, including the affected land and attachments on the land, and submit the inventory to the responsible authority for verification. The amount of compensation will be calculated on the basis of the inventory and be submitted to the related agencies.

12.2.2 Approval of LAR Documents

Land acquisition of the Project must be approved by the Fuzhou Urban Planning Bureau and then submitted to the Fuzhou Land Administration Bureau. The house demolition organization must obtain the house demolition approval document before the demolition commences. The responsible authority for land acquisition and resettlement is the Fuzhou Housing Administration Bureau. A land acquisition and resettlement program must receive approval by the bureau and be granted a “demolition and resettlement certificate” before it can begin implementation. Otherwise, it would be considered as illegal. The IA must submit all required documents to the Fuzhou Housing Administration Bureau according to relevant laws and regulations.

12.2.3 Compensation and Resettlement Agreement

The demolition and resettlement compensation agreement must contain the following: z Structure, square footage, location, stories, direction, land ownership and other related elements of the demolished house; z Resettlement compensation method; z Time allowance for the moving; z The amount of cash compensation, moving subsidy, other LAR compensation

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allowances, as well as the method and time of payment; z Penalties for violation of the agreement; z Any other issues that the parties concerned wish to specify.

The written agreement of demolition and resettlement and compensation shall be finalized between the resettlement office of FHDEO and the household concerned. The agreement will be signed when no disputes in the compensation prices exist between the two parties. It will take effect once signed, and will serve as the basis of responsibilities and obligations of both parties.

12.2.4 Implementation Schedule

The resettlement schedule for land acquisition, house demolition and relocation of the Project will be coordinated with the respective construction schedule. The public mobilization, public notice, agreement signing and fund disbursement shall be conducted three months before the project construction. Based on the time schedule of the Project, a preliminary land acquisition and resettlement schedule has been developed, reflecting the linkage and consistency between the time schedule of resettlement/land acquisition and civil works construction tasks.

In order to ensure that all aspects of the RP can be achieved, land occupation and resettlement will start at least one month before construction. The affected persons who choose replacement house must move into their alternative housing at least one month before house demolition. For those who choose cash compensation for house purchase, payment of compensation should be completed at least three months before relocation. This will ensure that the implementation will be completed within the two-year construction period. Resettlement implementation will be scheduled in stages to coincide with construction of the Project started in October 2004. However, before the land acquisition and APs are moved, a final measurement survey will be conducted in each affected community, and the household contracts will be negotiated and signed. Also, arrangements for housing replacement will be established before relocation proceeds.

The LAR schedule will be carried out by stages. The general Implementation Schedule of the Projects is presented in Table 12-1. The implementation schedule of land acquisition, relocation and resettlement are presented in Table 12-2.

12.3 Principles of the Resettlement Schedule

Explanation and related information should be provided to the affected people to obtain their understanding and support six (6) months before the construction of the Project. Agreement should be signed and funds should be disbursed three months before the Project construction to make sure the smooth implementation of the Project and ensure sufficient time to APs for resettlement and rehabilitation.

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Table 12-1 Project Implementation Schedule 2004 2005 2006 2007 2008 Activity 7 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4

Land Acquisition

Resettlement

Preliminary and Final Designing

Tendering

Inland Rivers Rehabilitation, Construction and Commissioning

Flood Gates Rehabilitation and Commissioning

Table 12-2 LAR Schedule Year 2004 2005 2006

Month 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Detailed population census in the affected district

Confirm APs and the poor LAR Complete the compensation and resettlement Plan policy

Conduct public participation on the RP

LAR Apply for LAR certificate

Sign the compensation and resettlement

agreement

Confirm the resettlement location

Permanent land acquisition

Issue compensation payment

Build or purchase new houses

APs moving to new destinations

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Year 2004 2005 2006

Month 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Demolish house and other buildings

Land re-allocation and diversified off-farm

activities

Re-employ the affected workers in the same Income business or other similar business Restoration Training

Establish internal monitoring system, procedures

and formats

Engage monitoring agency

Approve TOR by ADB

Training of resettlement staff M&E Monitor LAR activities

Monitor income restoration programs

Monitor socioeconomic indicators and vulnerable

program

Conduct external evaluation

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Appendix 1. The Implementation Methods of Land Administration Law of the People's Republic of China in Fujian

Adopted by the 14th Session of the Standing Committee of the 9th Fujian Provincial People's Congress on Oct. 22, 1999, and put into effect on Jan. 1, 2000

Contents

Chapter I General Provisions

Chapter II Ownership of and Right to the Use of Land

Chapter III Overall Plans for Land Utilization

Chapter IV Protection of Cultivated Land

Chapter V Land for Construction Purposes

Chapter VI Supervision and Examination

Chapter VII Legal Liabilities

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1 The methods are formulated in accordance with The Land Administration Law of the People's Republic of China (hereinafter refers to the Land Administration Law) , Implementation Regulations for the Land Administration Law of the People's Republic of China and other relevant laws and regulations and in the light of the actual conditions of our Province.

Article 2 The people’s governments at all levels throughout the whole province shall carry out the basic national policy of cherishing, making a rational use of the land and giving a true protection to the cultivated land in the country and enhance the administration of the land resource and assets. The Province shall implement the strict control system on the use of land to put a strict limit on the land from the agricultural use converting into the constructional purpose, control the total amount of land for constructional purposes, and give a special protection towards the cultivated land.

Article 3 The Land Administrative Department of the Provincial People’s Government shall be

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responsible for the unified land administration and supervision in the whole province.

The land administrative departments of the people’s governments of the prefectures (regions), municipalities with districts, and counties shall be responsible for the administration and supervision of land within their administrative divisions. The people’s governments at township level shall be responsible for the administration of land within their administrative divisions.

Chapter II Ownership of and Right to the Use of Land

Article 4 The province practices the land registration and certificate-issuing system according to the law. The ownership, right to the use of land and other rights which are legally registered in the relevant department of the government are protected by the law.

For the state-owned land with the undefined right to the use or with the right to the use being withdrawn according to the law, the people’s governments at or above the county level shall register and put on record of the land, and the land administrative departments are responsible for the protection and administration of such land.

The transfer, lease and mortgage of the right to the use of land shall be in conformity with the conditions prescribed in the laws and regulations, and be applied to the land administrative departments at or above the county level for verification and registration. If there are other prescriptions on the laws and regulations, follow the prescriptions.

Article 5 The right to operate land under contract of farmers shall be protected by law.

The people’s governments at all levels throughout the whole province shall protect the right to operate land under contract enjoyed by farmers according to the law. The period for farmers’ operating land under contract is 30 years. The collective agricultural economic organizations shall not change, cancel the land operating contract, or withdraw the land contracted by the farmers in advance without approval, except under any of the following circumstances: (1) The contracted land is requisitioned or approved to be used according to the law; (2) The contracted land has been set idle for two consecutive years and its right to the use has been withdrawn according to the law; (3) The contracted land has been destroyed by the unexpected force majeure and cannot recover to be cultivated; (4) The farmer contractor operates the land to engage in the production which exerts destroying or plundering influences on the land and refuses to listen to the dissuasion by the land owner; (5) The farmer contractor does not fulfill other obligations stipulated in the land contract; (6) Other circumstances stipulated by the relevant law and regulations.

The collective agricultural economic organization in the Methods refers to the organization which operates and manages the land owned by the collective of farmers in the villages/towns in accordance with the Article 10 of the Land Administrative Law.

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Article 6 Subject to the approval of the people's governments at or above the county level, the land administration departments may withdraw the right to the use of State-owned land in advance under any of the following circumstances and give an appropriate sum of compensation to the land users: (1) The land is needed for the construction of public utilities or public welfare undertakings; (2) The use of land needs to be readjusted with an aim to implement the urban planning and undertake the renovation of the old city.

The relevant people's governments shall resettle the land user according to the law who has to move as a result of the withdrawing of the right to the use of land. For the land user who has to pay to acquire the right to the use of land, the compensation shall be made in accordance with the provisions agreed in the land operation contract. If there is no such provisions set in the contract, the compensation shall be made after consulting and negotiation with the land user in line with the remaining duration of the contract period, purpose of land, cost for development and construction, and the residual value for the attached structure on the land, etc.

The collective agricultural economic organization which withdraws the right to the use of collective-owned land according to the law and needs to compensate the original land user, shall make compensations with reference to the above clause.

If any disputes rise on the withdrawing of the right to the use of land and the compensation fee, the original land user can apply for a settlement by the authorities at a higher level or file a suit in the people’s court according to the law.

Chapter III Overall Plans for Land Utilization

Article 7 The people’s governments of all levels of the province shall draw up overall plans for land utilization in accordance with the overall plans for land utilization at the higher authorities, local national economic and social development plan, requirements of integrated renovation of state-owned land and resource environmental protection, land supply capacity, survey results of actual utilized conditions of land and various demands for land for constructional purposes.

The drawing-up of the overall plan for land utilization shall give a strict protection to the basic cultivated land. The use of cultivated land for non-agricultural construction shall be strictly controlled, while the use of barren hillside fields, inferior land and hills shall be appropriately less strictly controlled.

The overall plan for land utilization shall be consistent with the overall urban plan, plan for villages and towns, plan for the integrated renovation, development and utilization of rivers, plan for transportation construction and other specialized plans. The approved overall urban plan, plan for villages and towns, and other specialized plans, which have exceed the scale and scope of land for constructional purposes defined in the overall plan for land utilization, shall be amended in time.

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Before the amendment, the scale and scope of land for constructional purposes shall accord to the ones defined in the overall plan for land utilization

Article 8 The Overall Plan for Land Utilization shall be checked and approved by the higher authorities level by level. The overall plan for land utilization of the town shall be approved by the people’s government of province in accordance with the Article 21 of the Land Administrative Law.

Before the overall plan for land utilization is submitted to the people’s government at the higher level for approval, it shall be reported to the Standing Committee of People’s Congress of the same level at the same time.

Article 9 The people’s governments of all levels of the province shall strictly implement the annual plan for land utilization.

No newly increased land for construction purposes shall be approved if the construction has no land-converting index from agricultural purpose to other purposes, or exceeds the land-converting index, or uses the idle land without according to the relevant prescriptions.

The land-converting index from agricultural purpose to other purposes for the next year shall be reduced if the applier has not implement the compensation system for the use of cultivated land for construction purposes or has not completed the planned index for land development and renovation.

The residual land-converting index from agricultural purpose to other purposes can be carried forward to the next year to be used upon the approval of the Planning Department and Land Administrative Department at the higher level.

Chapter IV Protection of Cultivated Land

Article 10 The Province adopts the compensation system for occupied cultivated land according to the law.

If non-agricultural construction needs to occupy the cultivated land after approval, the party shall be responsible for reclaiming the same amount of land in the same quality as that occupied one. If the party is unable to reclaim the land or the land reclaimed cannot meet the requirements, the party shall pay the reclamation fees to the Provincial Land Administrative Department according to the law and the standards prescribed by the Provincial Government.

Reclamation fees for the cultivated land shall be submitted to the special account, which will be specially used for reclaiming the new cultivated land. No exemption or reduce or embezzlement of the reclamation fee is allowed.

According to the regulations set by the Provincial Government, the Provincial Land Administrative

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Department shall allocate the reclamation fees in full volume in time to the units or individuals who are responsible for reclaiming the cultivated land.

Article 11 The province shall establish the system of protecting the basic cultivated land.

In line with the targets of protecting the basic cultivated land set by the upper authorities, the people’s governments of each level shall put the cultivated land specified in Article 34 into the designated basic cultivated land protection zone within their administrative region, integrate the basic cultivated land protection into the National Economic and Social Development Plan, carry out the objective management of the basic farmland protection and establish the objective responsibility system of the leaders’ term.

Any units or individuals are forbidden to change the area, scope and purpose of the basic cultivated land designated according to the law without approval.

Article 12 The people’s governments of all levels of the province shall establish the supervision and management system for cultivated land maintaining, draw up the plan for improving the quality of cultivated land, enhance scientific researches and take effective measures to improve the land quality.

The soil at the cultivated layer of the cultivated land shall be strictly protected and made good use of. Any constructional unit and individual are forbidden to bury and destroy the soil without the approval of the land and agricultural administrative departments at municipality and county level.

For the cultivated land within the constructional area set by the Overall Plan for Land Utilization, the people’s governments at or above the county level shall organize the land and agricultural administrative departments to draw up the Reutilization Plan for Soil at the Cultivated Layer after making surveys and identifying that the soil at the cultivated layer can be reutilized.

The constructional unit which has acquired the approval to use the cultivated land for constructional purpose, shall accord to the Reutilization Plan for Soil at the Cultivated Layer to use the soil on the improvement of the newly-reclaimed cultivated land, inferior land or other cultivated land within the set period.

Article 13 The people’s governments of all levels of the province shall draw up the plans for land development, reclamation and renovation and organize to implement in a planned way the integral renovation and treatment of fields, water, roads, forest and villages. Measures shall be taken to transform the farmland with medium and low output, adjust the land utilization structure, improve the agricultural ecological environment, and increase the effective area of cultivated land.

The land development, reclamation and treatment shall be in conformity with the Overall Plan for Land Utilization and Plan for Land Development with focuses on protecting the ecological environment, preventing soil from desertification, and controlling soil salinization and soil erosion.

Reclamation the land within the boundaries of river sources protection area, river course management

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area, management and protection area for water conservancy projects such as reservoirs, and on steep hillside fields with over 25 degree are prohibited.

Article 14 If any units or individuals exploit for one time the unutilized land or land with the right of use has not been decided, they shall go through the approval procedures according to the following prescriptions: 1) Exploitation of land below 10 hectares shall be approved by the people’s governments at the county level; 2) Exploitation of land at and above 10 hectares and below 20 hectares shall be approved by the people’s governments at the prefecture/region or municipality level; 3) Exploitation of land at and above 20 hectares and below 600 hectares shall be approved by the Provincial People’s Government; 4) Exploitation of the collective-owned barren land, barren hill and waste beach at and above 600 hectares shall be approved by the Provincial People’s Government; 5) Exploitation of the State-owned barren land, barren hill and waste beach at and above 600 hectares shall be approved by the State Council.

Any units or individuals who want to exploit the collective-owned barren land, barren hill and waste beach shall get the agreement of and sign the contract with the collective agricultural economic organization which has the right to use the collective-owned land.

The Administrative Methods on Exploitation of the Cultivated Land shall be enacted by the Provincial People’s Government.

Article 15 Any units or individuals who exploit the state-owned barren hill, barren land and waste beach with the undefined right to use the land to engage in the production of agriculture, forestry, animal husbandry and fishery, shall enjoy the following rights and benefits: 1. The units or individuals can enjoy the right to use the land for no longer than 50 years according to the law, and the inheritance and subcontract of the land within that period are allowed. 2. The units or individuals can enjoy the exemption and reduction of the agricultural tax for five years in accordance with the relevant regulations of the State; 3. The original land user has the priority to continue the contract of using the land at the expiration of the land use period.

Article 16 After the check and examination of the Provincial Land Administrative Department cooperated by the Provincial Agriculture Administrative Department, the newly reclaimed cultivated land after renovation can be used to make up the compensation index for the use of cultivated land for constructional purposes according to the stipulations of the State. In line with the land renovation plan, for the project of removal and renovation of old village which needs to occupy the cultivated land, the area of the used cultivated land can be replaced by 60% of the area of the newly reclaimed cultivated land upon the approval of the Provincial People’s Government.

Chapter V Land for Construction Purposes

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Section 1 Conversion of Cultivated Land and Land Requisition

Article 17 If the non-agricultural construction involves the conversion of cultivated land into land for construction purposes, the examination and approval procedures in this regard shall be required.

The land for construction whereas conversion of agricultural land is involved shall be approved by the Provincial People’s Government, except the following which has to be approved by the State Council: 1) For projects of the roads, pipelines and large infrastructures approved by the Provincial People’s Government, and projects approved by the State Council; 2) With an aim to implement the urban planning, Fuzhou Municipality and other cities designated by the State Council convert agricultural land into land for construction purposes completely for one time or batch by batch in accordance with the annual plan for the use of land.

Article 18 For the conversion of cultivated land into land for construction purposes, the people’s governments at municipality or county level shall accord to the Overall Plan for the Use of Land and Annual Plan for the Use of Land to take the following documents to apply for the approval by the upper authorities with the approval right level by level: 1) Application for conversion of cultivated land into land for construction purposes; 2) Drawing for Planned Districts of Use of Land; 3) Drawing of the Current Situation of Use of Land; 4) Planned (Red-line) drawing for the proposed land for conversion; 5) Description for the implementation of Annual Plan for the Use of Land; 6) Supplementary Cultivated Land Scheme; 7) Other documents needing to be submitted according to the prescriptions.

Article 19 The requisition of collective-owned land shall be approved through the following procedures: 1) To draft out the Land Requisition Plan; 2) To submit the application for land requisition; 3) To get the approval for land requisition; 4) To publish the announcement on land requisition; 5) To register with the compensation for land requisition; 6) To publish the announcement on land requisition compensation and resettlement to solicit the comments and opinions of the public; 7) To pay for the taxes and fees and the funds for land requisition compensation and resettlement; 8) To deliver the land.

Article 20 Before applying for land requisition, the land administrative departments at municipality and county levels shall, cooperated by the relevant departments, verify and check the information of the requisitioned land, such as the area and types of the affected land, compensation standards, ownership, etc. After soliciting the opinions of the affected units and land contractors, the land administrative department shall draft the land requisition plan and submit it to the people’s government at the same level for approval.

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Article 21 After acquiring the approval for Land requisition Plan, the people’s government at municipality and county level shall take the following documents to apply to the upper authorities with the approval right for land requisition: 1) Application for land requisition; 2) Land requisition Plan; 3) Drawing of the Current Situation of Use of Land; 4) Planning (Red-line) drawing for the proposed land for requisition; 5) Description for guaranteeing the fund for land requisition; 6) Other documents needing to be submitted according to the prescriptions.

If land requisition involves the conversion of cultivated land, or the conversion of cultivated land involves land requisition, the people’s government at municipality and county levels shall give explanations in written form, and go through the formalities of conversion of cultivated land and land requisition.

Article 22 After acquiring the approval for land requisition, the people’s governments at municipality and county level shall publish the Announcement for Land Requisition within 10 days after the date of approval, and post it in the area where the affected units and land contractors are. The announcement shall cover the following items: (1) Approval documents for land requisition; (2) Area, location and scope of proposed requisitioned land; (3) Purpose of proposed requisitioned land; (4) The affected people, period and documents needed for compensation registration; (5) Implementing unit for land requisition; (6) Forbidden issues and other issues which need to be published.

After the publishing of announcement of the Requisition Plan, the affected units and land contractors shall not plant any trees or crops or construct any buildings.

Article 23 After verifying and confirming the issues for compensation registration, the land administrative departments the people’s governments at municipality and county level shall, cooperated by the relevant departments, verify and check the current situations of the requisitioned land and numbers of the affected standing crops and attachment on the land, and draft out the Compensation and Resettlement Plan within the set period. The Compensation and Resettlement Plan shall cover the following items: (1) Summary table of compensation and resettlement fees for land requisition; (2) Standards, calculation methods and way of payment for compensation and resettlement fees for land requisition; (3) The affected people who shall be paid the land compensation fee, resettlement subsidies, compensation fee for standing crops and attachment on the affected land; (4) Resettlement Plan for the affected farmers.

The Compensation and Resettlement Plan shall publish in time the Announcement on Soliciting Comments and Opinions of the affected units and land contractors. The period for soliciting comments and opinions lasts 15 days. The announcement shall cover the following

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items: (1) The Compensation and Resettlement Plan after being verified and approved; (2) Time and location for getting the compensation and resettlement fees for land requisition; (3) Time for handing over the requisitioned land; (4) Way and period for raising disputes; (5) Other issues needed to solicit comments and opinions.

Article 24 The land administrative departments at municipality and county levels shall allocate the compensation and resettlement fees from the special account for land requisition set up by the Financial Department at the same level within three months from the date on which the Compensation and Resettlement Plan is published.

If the affected units and land contractors raise the different opinions on the Compensation and Resettlement Plan, the people’s government at or above the county level shall make a conciliation. If the conciliation fails, the people's government which gave the formal approval for the land requisition shall make an adjudication.

The disputes on land requisition compensation and resettlement shall not influence the implementation of the land requisition plan. The affected units and land contractors shall not stand in the way of land requisition.

Section 2 Compensation and Resettlement for Land Requisition

Article 25 To requisition land, the requisition unit shall pay the land compensation fee, resettlement subsidies, and compensation fee for standing crops and attachments on the land.

Article 26 The land compensation fee shall be paid to the collective agricultural economic organization which holds the right to use the collective-owned land. However, if the requisitioned land belongs to the farmer’s operation land under contract or farmer’s family plot, etc, and the collective agricultural economic organization is not able to allocate a plot with the equivalent size and quality to the farmer to continue to operate under contract, the organization shall pay no less than 70% of the land compensation fee to the farmer. If the collective agricultural economic organization is able to use the land compensation fees on expanding the production and provide livelihood to its farmers, the land compensation fees can be unified arranged and used. Plots with the equivalent size and quality to the lost land can be provided to the affected people. If the reallocated plots do not have the equivalent size and quality to the lost land, the ratio for the allocation of the land compensation fees shall be decided through negotiation between the collective agricultural economic organization and the affected farmers.

The collective agricultural economic organization shall set up a special account for the land compensation fees acquired according to the above provision. The land compensation fees shall be used to develop production, to provide employment for the extra labor force due to requisition of the land and as living subsidies for people who cannot be employed.

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The methods on use and management of the land compensation fees shall be decided by the members of the collective agricultural economic organization through exercising the right to vote. The expenditure of the land compensation fees shall be publicized at least once for every six months and accept the monitoring of the members of the collective agricultural economic organization. Any units or individuals are forbidden to hold back, misappropriate, improperly convert or illegal use the land compensation fees in other ways.

Article 27 To requisition land, the requisition units shall pay the land compensation according to the following standards: (1) For requisition of the cultivated lands, if they are irrigated lands, vegetable plots and fish ponds, the compensation shall be equal to 8-10 times of the average annual output value of the requisitioned land for the three years preceding the requisition; Other cultivated lands shall be compensated 6-8 times of the average annual output value of the requisitioned cultivated land for the three years preceding the requisition. (2) For requisition of the land for orchard and other economic forest, the compensation shall be 60%-70% of that of irrigated land; If it was originally cultivated land (later changed into the land for orchard and other economic forest), the compensation shall be paid according to the compensation standard of the same type of land. (3) For requisition of the land for non-economic forest, the compensation shall be 40% of that of irrigated land; (4) For requisition of the water surface and beach for aquatic farming, the compensation shall be 60%-70% of that of irrigated land; (5) For requisition of the salt pan, the compensation shall be 50% of that of irrigated land; (6) For requisition of other unutilized land, the compensation shall be 50% of that of irrigated land.

Article 28 If the affected farmers are relocated by the collective agricultural economic organization, the resettlement subsidies shall be paid to the collective agricultural economic organization; if they are relocated by other units, the resettlement subsidies shall be paid to the units which are responsible for the resettlement. For those affected farmers who need no relocation, the resettlement subsidies shall be paid to them directly or paid for insurance fees of the affected people after acquiring their consents.

Article 29 The resettlement subsidies for requisitioned cultivated land shall be calculated according to the population needing to be resettled. The population needing to be resettled shall be calculated by dividing the amount of the requisitioned cultivated land by the average per capita amount of cultivated land of the affected unit before the requisition. The resettlement subsidies for every person needing to be resettled shall be 4-6 times of the average annual output value of the previous four years of the affected land before the requisition.

For the requisition of orchard or other economic forest, the resettlement subsidies for the affected population shall be 3-5 times of the average annual output value of the previous four years of the affected land before the requisition; For the requisition of salt pan or water surface and beach for aquaculture production, the resettlement subsidies for the affected population shall be 2-4 times of the average annual output value of the previous four years of the affected land before the requisition.

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Article 30 The compensation of the ground attachments and green crops on the requisitioned land shall be paid to the land contractor or the property right owners of the ground attachments according to the following standards: (1) Compensation for loss of standing crops shall be determined based on the average annual output value of the previous three years of the affected land before the requisition; (2) The affected artificial aquatic farming facilities shall be compensated at full replacement cost of materials and labor with no deduction for depreciation or salvageable materials, and the loss of breeds shall be compensated at 60% of the cost of materials and labor; (3) Compensation for the affected houses, other building and structure shall be determined at full replacement cost of materials and labor with no deduction for depreciation or salvageable materials. The specific compensation standard shall be enacted by the people’s government at municipality and county levels and implemented after being reported to the upper authorities and acquiring the approval.

If the ground attachments are forest or trees (fruit trees, bamboos), the trees (fruit trees, bamboos) cut after the land acquisition belong to the original owners. The compensation shall be paid according to the following standard: (1) Compensation for sapling trees for material forest shall be twice the cost of materials and labor of tree-planting; compensation for medium-aged forest shall be 40%-60% of the output value of mature forest per mu; compensation for mature forest shall be 30% of its output value per mu; (2) Compensation for bamboo trees shall be twice the output value of the requisitioned land; (3) Compensation for fruit trees and other economic forest shall be 2-7 times of the average annual output value of the previous four years of the affected land before the requisition; But for fruit trees without producing fruits, the compensation shall be twice the cost of materials and labor; for fruit trees with fruits, the compensation shall be 4-7 times of the output value according to the growing period and condition of the tree; (4) Compensation for special-purposed forest and shelter forest shall be 4-7 times of the compensation standard of the same type of timber forest. (5) Compensation for fuel forest shall be 40%-60% of the compensation standard of the same type of timber forest.

The constructions and other facilities built on the illegally occupied land and the crops and trees planted and the attachments constructed after the announcement of the Requisition Plan shall not be compensated.

Article 31 The land compensation fee, resettlement subsidies, compensation fee for standing crops and attachments on the land for the land requisition for the following constructional projects shall be paid in accordance with the lowest limit of the compensation standards: (1) Projects of national defense or military purpose; (2) Projects of urban infrastructure or public welfare undertakings; (3) Projects of infrastructure supported and subsidized by the State or the Province, such as energy, transportation, water conservancy, etc.; (4) Projects of permanent buildings and structures for emergency and disaster-relief and other facilities.

The construction of underground air-defense facilities shall enjoy the exemption of land tax and fees.

Article 32 In case the land compensation fee and resettlement subsidies, paid in accordance

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with these Methods, are still insufficient to maintain the original living standards of the relocated farmers before the land requisition, the resettlement subsidy may be increased upon the approval by the Provincial People’s Government. Nevertheless, the maximum resettlement subsidies for the requisitioned cultivated land per hectare shall not be more than 15 times of the average annual output value in the previous three years of the affected land preceding such requisition.

If the State Council adjusts the standards of the land compensation fee and resettlement subsidies, the Provincial People’s Government shall make the corresponding readjustment in line with the actual conditions of the Province.

Article 33 The average annual output value of the requisitioned land shall be calculated by multiplying the average annual output in the previous three years (four years for fruits and economic forest) of the affected land before the requisition with the price set by the State. If the State does not set the price, the price shall be the market price published or recognized by the local Price Administrative Department at the municipality or county level.

The average annual output of this Article refers to the average annual output in the previous three years of the affected town before the requisition provided by the Statistics Department of the locality where the land requisition happens.

Article 34 For the non-agricultural construction which gets the approval to use the state-owned farm, forest center, pastureland, orchard, tea plantation and fishing ground or the collective-owned land, the compensation and resettlement subsidies shall pay the compensation and resettlement fees with reference to the compensation standards and methods for land requisition.

Article 35 From the next year of the approval of the land requisition, the Financial Department shall verify and reduce the annual output (which will be used as the base for calculating taxes) and agricultural tax volume for the legally requisitioned land. The People’s Governments at municipality and county level shall verify and check the grain purchase quota for the legally requisitioned land and reduce it after reporting to the Provincial People’s Government for approval. And the relevant departments shall be responsible for checking and reducing in time the fees which will be calculated according to the area of the cultivated land for the requisitioned land.

Section 3 Supply of Land for Construction Purposes

Article 36 The construction of public facilities and public welfare undertakings of the towns and villages can apply for the use of collectively-owned land; The construction of township enterprises and rural houses built by farmers themselves can apply for the use of land owned by their collective. Land for construction purposes shall be in conformity with the overall plan for land utilization of the towns, planning for villages and towns, annual plan for land utilization.

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Except for the construction stipulated in the above provision, the other non-agricultural construction shall apply for the use of state-owned land.

For the construction of public facilities and public welfare undertakings of the towns and villages and township enterprises which need to use the land owned by farmers’ collective, and the collective agricultural economic organization which establishes an enterprise jointly with other units or individuals with the forms of jointly-cooperation or share-holding with the right to use the land converting into shares, the approval for the land for constructional purposes shall be proceeded following the first item of Article 40 of the Methods. If occupation of land for construction purposes involves the conversion of cultivated land into land for construction purposes, the examination and approval procedures in this regard shall be required first in accordance with Article 44 of the Land Administration Law.

Article 37 Except for the items listed in Article 54 of the Land Administration Law, other kinds of construction projects shall acquire the right to use the state-owned land through the non-gratuitous means such as transferring, leasing and converting the Land-use-right into money or shares, and so on.

For the construction of real estate projects, except for the economic housing project, the right to use the state-owned land shall be transferred by bidding or auction. The transfer of the right to use the state-owned land by bidding or auction shall go through the formalities according to the provisions of the People’s Government of the Province.

Of the total amount of fees for the transferring of the right to use the newly-increased land for constructional purposes collected by the people’s governments at the county (or city) level, 30% shall be submitted to the Central Financial Department, 20% be submitted to the Provincial Financial Department, 10% be submitted to the Municipal Financial Department, and the rest 40% shall be left for the Financial Department at county level specially used for the development and reclamation of cultivated land.

Article 38 When undertaking the Feasibility Study of the constructional project, the construction unit shall submit a pre-application for the use of land for constructional purpose to the Land Administrative Departments of the same level or at the higher level of the authority who gave the formal approval on the constructional project.

Upon receiving the application, the Land Administrative Department shall, in accordance with the overall plan for land utilization, the annual plan for land utilization and national policies on land supply, examine and verify whether the construction of projects shall use the land from various aspects, such as ways of land supply, scope for land needed, compensation and resettlement, balancing measures for the occupation and reclamation of cultivated land, etc., and produce the pre-verification report on use of land for constructional projects within the prescribed period.

The pre-verification report on use of land for constructional projects produced by the Land

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Administrative Departments at municipality and county level shall be submitted to the Provincial Land Administrative Department for references.

When the constructional unit goes through the approval procedures for the Feasibility Study report of the constructional project, it shall submit the pre-verification report on use of land for the constructional project produced by the Land Administrative Department. If the project involves the occupation of the forest land, building control area on both sides of the road, land within the boundary of water conservancy facilities and river course management, or the beach and water surface with the permit for aquaculture farming, the unit shall also produce the verification and approval opinions by the administrative departments of forestry, transportation, water conservancy and fishery respectively.

For the projects without acquiring the pre-verification report on use of land for constructional projects, the relevant departments shall not approve the project and proceed with the procedures of reporting and approving for the use of land for constructional purposes.

Article 39 Within the scale and scope of the land for constructional purposes of the cities, villages and towns defined in the Overall Plan for Land Utilization, if the constructional project needs to use the land through land-use-right transferring under contract or allocation, the constructional unit shall take the following documents and materials to file an application for land use to the people’s government at municipality and county level: 1. The pre-verification report on use of land for the constructional project; 2. Approval on the Feasibility Study report of the constructional project or other relevant approval documents for the project; 3. Drawing for the overall layout of the constructional project; 4. Certificating documents for ensuring the funds for use of land; 5. Approval documents by the relevant administrative departments of planning, environmental protection and forestry, etc. 6. Planning drawing for the use of land of the project; 7. Other documents needed to be submitted according to the prescriptions of the law and regulations.

Upon the check and approval by the Land Administrative Departments at municipality and county level, the application for use of land shall be approved by the people’s government at municipality and county level within its power competence in accordance with the first item of Article 40 of the Methods. If the project involves land requisition or the conversion of cultivated land into constructional purposes, the people’s government at municipality and county level shall not give an approval for the use of land until the construction unit has gone through with the procedures of application and approval for land requisition or the conversion of cultivated land according to prescriptions of Section 1 of this Chapter.

Article 40 If the land to be occupied for construction purpose is the approved requisitioned land or cultivated land converted for constructional purpose within the scale and scope of the land for constructional purposes of the cities, villages and towns defined in the Overall Plan for Land Utilization, the use of land shall be approved by the people’s governments,

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according to their competence: (1) If the construction land is less than 1 hectare, it shall be approved by the people’s government at county level, and be submitted to the Provincial People’s Government, or the people’s governments at Prefecture or municipality level for references; (2) If the construction land is larger than 1 hectare, it shall be approved by the people’s governments at Prefecture or municipality level, and be submitted to the Provincial People’s Government for references.

If the land to be occupied for construction purposes is the unutilized state-owned land defined in the Overall Plan for Land Utilization, the use of land shall be approved by the people’s governments, according to their competence: (1) If the construction land is less than 4 hectares, it shall be approved by the people’s government at county level, and be submitted to the people’s governments at Prefecture or municipality level for references; (2) If the construction land is more than 4 hectares and less than 10 hectares, it shall be approved by the people’s governments at Prefecture or municipality level, and be submitted to the Provincial People’s Government for references; (3) If the construction land is larger than 10 hectares, it shall be approved by the Provincial People’s Government; (4) The use of unutilized state-owned land within Xiamen Special Economic Zone shall be approved by the Xiamen Municipal People’s Government, and be submitted to the Provincial People’s Government for references.

If the land for construction purpose locates outside the scale and scope of the land for constructional purposes of the cities, villages and towns defined in the Overall Plan for Land Utilization, the use of land shall be approved by the relevant authorities together with the approval of land requisition or the conversion of cultivated land into constructional purposes. If the project does not involve land requisition or conversion of cultivated land into constructional purposes, the use of land shall be approved by the Provincial People’s Government.

Article 41 The land that every rural household uses to build the residence shall not exceed 80 m2-120 m2. The land to build residence for the rural household with only 3 population shall not exceed 80m2, and for the rural household with 6 population, no more than 120m2. If the rural residents use the barren hillside land or idle plots of the village to build residences, or rebuild the houses on the original house sites, the area for residential land can be appropriately increased with the maximum increased area for every rural household no more than 30m2.

The people’s governments at municipality and county level can, within the scope of the land area prescribed in the above provision, enact the specific standards for the land to build rural residences in the light of the land area per capita, types and grades of land, population density, plans for villages and towns, etc. within their administrative districts.

The rural residences built by rural residents shall be in conformity with the principle of unified planning, rational layout and economical utilization of the land. For the villages or

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towns that have not drawn up the Plan for the village or town, the use of land to build rural residences shall not be approved.

Individual’s application for land use to build a single residential house with its own courtyard in the planning urban district of the city or the county proper is forbidden to be approved. But if the house is located in the constructional district unified planned or concentrated constructed by the people’s governments at municipality and county level, the application shall be approved.

Article 42 Rural residents shall take the registered permanent residence and ID cards of the adult members of the family to file an application to the Villagers’ Committee for the use od land to build residences. Upon the agreement of the Villagers’ Committee or the Villagers’ Representative Meeting, the village shall publish an announcement to solicit the opinions of the villagers. If no different opinions are put forward within 15 days, the application shall be submitted to the people’s governments at county level for approval after being verified and examined by the people’s governments at township level.

Every rural household can only own a residential plot. The application for residential plot shall not be approved under the following circumstances: (1) The rural household has already had the residence with the residential plot area reaching the maximum limit prescribed in Article 41 of the Methods; (2) The rural household who has sold or leased the house applies for the residential plot again.

If the rural residents want to use the cultivated land to build their residences, they shall proceed with the approval procedures for the conversion of cultivated land for constructional purposes first before applying for the use of land for building residences.

In accordance with the Construction Planning and the Land Renovation Scheme of the villages and towns, the people’s governments at county and township level shall organize the Villagers’ Committee or the collective agricultural economic organization of the village to withdraw the idle residential plots of the farmers according to the law and make unified arrangement and use. For the withdrawn residential plots, the government shall go through the procedures for canceling registration of right to use the collectively-owned land according to the law.

Article 43 Within the scope of urban planning district, any change or expansion of the original buildings and structures shall apply for the consent and approval from the Urban Planning Administrative Department. If it involves the change of land purpose or transfer of the right to use the land, the constructional unit shall, upon the consent of the Land Administrative Department, submits to the People’s Government which formally approved the land for constructional purpose for approval and pays for the relevant land fees according to the regulations. With the receipt of the land fees, the constructional unit can go through the procedures of acquiring the permit for planned land for constructional purposes in the Urban Planning Administrative Department.

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The projects of integrated agricultural development shall use the land strictly according to the land purposes approved by the people’s governments at municipality and county level. Any changes from the original purposes to non-agricultural constructional purposes are prohibited. If the project does need the supporting non-agricultural construction, (except for the construction of administrative houses and warehouses, etc. for self-use for the productions and services of agriculture, forestry, animal husbandry and fishery directly), the unit shall go through the approval procedures of land for constructional purposes in accordance with the prescriptions of Article 44 and Article 45 of the Land Administration Law and the first item of Article 40 of the Methods.

Article 44 If the state-owned enterprises need to dispose and allocate the right to use the land as a result of bankruptcy, amalgamation, assets restructuring or transformation of share-holding system, the enterprises shall apply to the land Administrative departments at or above county level for the procedures of disposal plan and confirmation of the result of land appraisal. If the enterprises are directly under the administration of the State and the Province, the disposal and allocation of the right to use the land shall be reported to the Land Administrative Departments of the State Council or the Provincial People’s Government for confirmation.

The right to use the collective-owned land shall not be sold, transferred or leased for non-agricultural construction. But if the right to use the land has to be transferred as a result of the bankruptcy and amalgamation, etc. of the enterprise which is in conformity with the overall plan for land utilization and has acquired the land for constructional purposes according to the law, the enterprise shall apply to the land administrative departments at municipality and county level for proceeding with the procedures of transfer and registration of the right to use the land.

Article 45 Any units or individuals that need to use the land for constructional purposes shall apply to the land administrative departments at municipality and county level for getting the permit to requisition the land for the temporary uses and pay the compensation fees for temporarily requisitioned land according to the prescriptions under any of the following circumstances: (1) Constructional site outside the scope of the land approved for project construction; (2) Site for geological prospecting; (3) Other temporarily requisitioned land that need to apply for approval required by the land administrative departments at or above county level.

Requisition of the land within urban planning district for the temporary uses shall acquire the consent from the Urban Planning Administrative Department before being submitted for approval.

Requisition of cultivated land for the temporary uses shall be strictly controlled. Temporarily requisition of less than 2000 m2 cultivated land shall be subject to the approval of the Land Administrative Departments at prefecture and municipality level. Temporarily requisition of

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more than 2000 m2 cultivated land shall be subject to the approval of the Land Administrative Department of the Provincial People’s Government and go through the procedures of approval in accordance with the first and second sections of this Article.

The construction units which need to requisition the state-owned land or collective-owned land for the temporary uses shall sign temporary land-use agreements with the land administrative departments at municipality and county level or the collective agricultural economic organizations respectively. The specific standards for land compensation for temporarily requisition of the state-owned land shall be stipulated by the Provincial People’s Government, while the specific standards for land compensation for temporarily requisition of the collectively-owned land shall be agreed on in the agreements with reference to the compensation standards for state-owned land.

The temporarily requisitioned land shall be used according to the purposes agreed in the agreement. No permanent structures shall be erected on such land for temporary use. Land-using units or individuals shall be responsible for the cleaning-up, renovation and restoration of the production conditions of such land after the period for temporary use expires.

Article 46 Non-agricultural construction shall use the land within the construction period stipulated in the Approval for Land for Constructional Purposes. If the construction units cannot implement the construction within the set period due to any of the following reasons, the construction units shall provide the relevant certification documents to apply to the agencies authorizing the use of land for projects for the extension of the implementation period of construction. (1) Force majeure; (2) Behaviors of the government or the departments of the government which make the land unable to be put into use on schedule; (3) Other proper reasons of the land-using units or individuals.

If any construction units or individuals that fail to start to construct within the construction period stipulated in the Approval for Land for Constructional Purposes, expect for the circumstances listed in Item 1 and Item 2 above, the right to use the land shall be withdrawn by the Land Administrative Departments at or above county level upon the approval of the original agencies authorizing the use of land for projects. But if the construction units or individuals can not start to construct due to the reason listed in Item 3 above, the construction units or individuals can apply for the extension of the implementation period of construction for no longer than 2 years, and shall pay for the land idling fees to the Land Administrative Department at the same level with the agency authorizing the use of land for projects in accordance with the following standards: (1) If the implementation period of construction is extended for one year, the land idling fee shall be paid based on 5% of the transferring fee of the right to use the land or the total amount of land requisition fees; (2) If the implementation period of construction is extended for two years, the land idling fee shall be paid based on 10% of the transferring fee of the right to use the land or the total

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amount of land requisition fees.

Chapter VI Supervision and Examination

Article 47 The people’s governments at and above the county level shall report regularly the following issues to the People’s Congress or the Standing Committee of the People’s Congress at the same level: 1. Implementation of protection of cultivated land and responsibility system for balance of occupied and reclaimed cultivated land; 2. Implementation of Overall Plan for Land Utilization; 3. Implementation of Annual Plan for Land Utilization; 4. Use of reclamation fees for cultivated land; 5. Approval of use of land and examination and punishment of illegal land occupying behaviors.

The people’s governments at the municipality and county level shall report the above issues to the higher authorities.

Article 48 The land administrative departments of the people’s governments at and above the county level shall exercise the obligation of supervision and examination, and stop the illegal behaviors to occupy the land by taking measures of sealing up, distraining upon the tools, equipment, materials for construction, etc.

Article 49 The people’s governments at higher level or the land administrative departments at higher level shall conduct monitoring on the specific administrative behaviors, such as approval of the land, certificate-issuing, administrative penalties, and land bid-inviting and auction, etc. of the people’s governments at lower level or the land administrative departments at lower level respectively. The illegal and improper behaviors shall be ordered to make rectification within a definite period of time, and shall be changed or cancelled according to the law if they refuse to be rectified.

Article 50 The Provincial Land Administrative Department, when it find that the people’s governments at municipality and county level do not withdraw the idle land according to the law during the supervision and monitoring, shall withdraw the right to use the land of the land-using units according to the law upon the approval of the Provincial People’s Government. The idle land withdrawn shall be returned to the original collective agricultural economic organization for resuming cultivation if it has not been requisitioned as the state-owned land. If the idle land withdrawn has been requisitioned as the state-owned land or it is originally state-owned, it shall be listed as the provincial reserving land on which the cultivation and farming shall be organized if the land fits for cultivation.

Article 51 The non-confidential basic materials approved by the relevant authorities, such as land registration statistics, surveys on current situation of land utilization, results of land-grade appraisal, drawing and figures of the Overall Plan for Land Utilization, changes of the current situation of land utilization, and so on, shall be taken as the public information and provided to the public by the land administrative departments at or above county level and to accept the monitoring of the society.

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Chapter VII Legal Liabilities

Article 52 If any unit or individual violates the prescriptions of the Methods and is fined by the Land Administrative Departments of the People’s Government at or above the county level in accordance with the Article 73 of the Land Administrative Law, the fine shall be between 20%-50% of the total illegal incomes. If the illegal incomes can not be calculated, the fine shall be 3%-10% of the total amount for illegally transferring the right to use the land.

If any unit or individual is fined in accordance with the Article 81 of the Land Administrative Law, the fine shall be between 5%-20% of the total illegal incomes. If the illegal incomes can not be calculated, the fine shall be 2%-5% of the total amount for illegally selling, transferring or leasing the right to use the land.

The total amount for illegally selling, transferring or leasing the right to use the land shall be the land transaction price agreed by both parties concerned. If the price is not agreed by both parties, or the price agreed is obviously lower than the market price, the price shall be the base price for land transaction promulgated by the government.

Article 53 Within the urban planning district, if any units or individuals change the original buildings and structures or make expansion without approval, which involves the change of the purpose of the land or transfer of the right to use the land without processing the approval procedures, the relevant authorities shall order them to proceed with the procedures within the given period of time and pay for the relevant land fees unpaid originally, and give them a penalty by fining 1%-3% of the amount of the fees that should be paid.

Any units or individuals that requisition the land for temporary use or erect any permanent structures on the land for temporary use without approval shall be ordered by the land administrative departments at or above county level to make rectification within a definite period of time and restore the production conditions of the land. If they refuse to make rectification within the period, they shall be handled and punished as a case of unlawful encroachment of land.

If the construction units of the integral agricultural development projects change the purpose of the land formally approved to undertake the non-agricultural construction without approval, the land administrative departments shall order them to make rectification within a definite period of time. If they refuse to make rectification within the period, the land administrative departments shall demolish or confiscate the structures or installations.

Article 54 In case that a unit or individual approves to reduce or exempt the legal land taxes and fees by overstepping the authority of approval or violating the lawful conditions, the documents of such approval shall be void and the land administrative department at the higher level or the relevant administrative departments shall order the unit or individual to pursue the unlawfully reduced or

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exempted land taxes and fees within a definite period of time.

In case that a unit or individual unlawfully approves to reduce or exempt the legal land taxes and fees or to transfer the right to use the state-owned land at the price lower than the base price for land, the person who bears the main responsibility in such a unit or the person who has unlawfully given the approval shall be given an administrative penalty. If the case is serious enough to constitute a crime, the persons shall be investigated of criminal punishments according to the criminal law.

Article 55 In case that a unit or individual reduces the protection area of basic cultivated land, readjusts the scope of the basic cultivated land protection area, and changes the data, figures, drawings of the surveys of current situation of land utilization and purposes of land defined in the Overall Plan for Land Utilization without approval, the behaviors shall be invalid and the person in charge and the other people who are directly responsible for shall be given administrative punishments.

In case that a unit or individual unlawfully approves occupation of land, the documents of such approval shall be void and an administrative penalty shall be given to the person who bears the main responsibility in such a unit or individual who has unlawfully approved occupation of land. If the case is serious enough to constitute a crime, the persons shall be investigated of criminal punishments according to the criminal law.

In case that a unit or individual without approval gives the approval procedures for use of land or verifies and issues the permit for the illegal land requisition without dealing with such illegal land requisition according to the law, the person who bears the main responsibility in such a unit or individual who has unlawfully approved illegal land requisition shall be given an administrative penalty. If the case is serious enough to constitute a crime, the persons shall be investigated of criminal punishments according to the criminal law.

Article 56 Any unit or individual who appropriate, hold back, unlawful divide or improper convert to the own-use the relevant fees, such as compensation fee for land requisition, cultivated land reclamation fee, etc., shall be ordered to returned the fees within a definite period of time. The person in charge and the other people who are directly responsible for such behaviors shall be given administrative punishments. If the case is serious enough to constitute a crime, the persons shall be investigated of criminal punishments according to the criminal law.

Article 57 Dereliction of duty, abuse of power for personal gains, practice of favoritism and demand or reception of bribery by personnel of the land administrative departments shall be investigated of criminal punishments according to criminal law, if the offence is serious enough to constitute a crime. If the case is not serious enough to constitute a crime, the persons shall be given administrative sanctions according to the law.

Chapter VIII Supplementary Provisions

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Article 58 If any units or individuals transfer the right to use the land under the following circumstances, their behaviors shall be called illegally transfer of the right to use the land in the Methods: (1) To transfer or allocate the right to use the land without being approved by the relevant authorities; (2) To undertake the real estate development, jointly houses construction or other business activities with other units or people with the right to use the land converting into shares or the co-operational conditions, without being approved by the relevant authorities; (3) To transfer the buildings and other facilities on the land without going through the procedures for transferring and allocating the right to use the land; (4) The transferred right to use the land has exceeded the legal period without applying for registration; (5) To transfer without approval, though not in conformity with the lawful transferring conditions or the transferring conditions agreed in the contract, the right to use the land which has been acquired through transferring; (6) To sell or transfer in other means the land without acquiring the right to use the land according to the law; (7) Other kinds of illegally transfer of the right to use the land prescribed in the laws and regulations.

Article 59 Any of the following behaviors shall be listed in these Methods as unlawful approval of use of land: 1. Any unit or individual without authority to approve requisition or use of land approves use of land; 2. Any unit or individual approves use of land without according to the purposes of land defined in the Overall Plan for Land Utilization; 3. Any unit or individual approves use of land by overstepping the authority of approval in the form of breaking up the whole land into parts, etc.; 4. Any unit or individual approves use of land not according to the legal procedures, that is, to give the approval before the applier has gone through the approval procedures of converting agricultural land into constructional purposes or land requisition; 5. Any unit or individual approves use of land by acting in collusion with the land-using unit to hide the truth; 6. Any unit or individual approves use of land in the unlawful means such as leaders giving instructions, summary of meeting minutes, etc.; 7. Any unit or individual approves use of land by overstepping the lawful authority of approval; 8. Other kinds of unlawful approval of use of land prescribed in the laws and regulations.

Article 60 The Methods shall come into effect from Jan 1, 2000. The Implementing Methods of the Land Administration in Fujian Province, which was adopted by the Standing Committee of the Sixth Fujian Provincial People's Congress on Feb. 19, 1987, shall be abolished at the same time.

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Appendix 2. Fuzhou City Urban House Demolition Administration Regulations

Administrative Methods of Urban Building Demolition and

Relocation of Fuzhou Municipality

Adopted on the 5th Session of the Standing Committee of the 11th Fuzhou Municipal People's Congress on Aug. 31, 1998; approved by the 20th Session of the Standing Committee of the 9th Fujian Provincial People's Congress on July 28, 2000; promulgated by the Standing Committee of Fujian Provincial People's Congress on Aug. 9, 2000; and put into effect on Aug. 9, 2000

Contents Chapter I General Provisions Chapter II Management on Building Demolition Chapter III Relocation for Building Demolition Chapter IV Compensation for Building Demolition Chapter V Disputes Settlement and Legal Liabilities Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1 The methods are formulated in accordance with the Administrative Regulations for Urban Building Demolition and Relocation enacted by the State Council and in the light of the actual conditions of our Municipality with an aim to strengthen the management of the urban building demolition and relocation, safeguard the legal rights and benefits for affected persons and ensure the smooth implementation of urban construction.

Article 2 Any construction on the State-owned land within urban planning areas which has acquired the approval according to the construction procedures and needs to demolish the original houses and the auxiliary buildings, shall follow the Methods.

Article 3 The Demolition Unit in the Methods refers to the person or unit that shall acquire the Permit for Urban Building Demolition according to the law.

The affected person/people in the Methods are the owners (including the people entrusted by the owners to supervise the houses or people entrusted by the State to supervise the state-owned houses) and users of the demolished houses and auxiliary buildings.

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Article 4 Any urban house and building demolition shall be in conformity with the urban plan and be good for the renovations of older urban areas.

Article 5 The urban house and building demolition shall follow the principles of providing appropriate resettlement, making rational compensation for the affected persons, and relocating the affected persons prior to the demolition.

The Demolition Unit shall follow the Methods to relocate and make compensation for the affected people without impairing their legal rights and benefits. The affected people shall comply with the needs of urban construction and remove timely. Any excuses to delay the removal and any requirements for compensation and relocation beyond the Methods are prohibited.

Article 6 The relocation compensation methods for house and building demolition takes the forms of cash compensation /monetary relocation or the house property right exchange/lump-sum house replacement, with cash compensation being encouraged.

The forms of relocation compensation are chosen by the affected people after the negotiations of both parties in accordance with the wishes of the affected people and taking into consideration of the conditions of the Demolition Unit, such as funds, source of replacement houses.

Article 7 Fuzhou Municipal Real Estate Administrative Bureau is the administrative department for urban building demolition and relocation (hereinafter refers to the Building Demolition Administrative Department), which is responsible for the organization to implement the Methods. Its responsibilities mainly include the following: (1) To work out policies and implementing regulations for building demolition and relocation, report to the Municipal People’s Government for approval and organize the implementation after the approval; (2) To examine and approve the application for building demolition according to the law, evaluate the replacement methods and locations, verify-and-issue the Permit for Building Demolition, and publish the announcement on Building Demolition; (3) To supervise and manage the qualifications of the demolition units according to the law; (4) To supervise and manage the use of relocated houses and resettlement funds; (5) To examine and supervise the work of demolition and relocation, urge the affected people to go through the registration of property rights of demolished houses; (6) To settle the disputes on demolition and relocation, deal with and punish the behaviors which are against the Methods.

The Building Demolition Administrative Department shall not accept the entrustment to implement the building demolition and relocation.

Article 8 The people’s governments at all levels shall strengthen the leadership of the supervision on building demolition. The relevant departments of the local people’s government, such as departments of urban planning, land administration, construction, public security, industrial and commercial administration, city visual development, culture and education, etc., shall take their respective responsibilities and cooperate with each other to ensure the smooth implementation of building demolition in line with the Methods.

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Chapter II Management on Building Demolition

Article 9 After the evacuation scope has been determined, the Building Demolition Administrative Department shall publish the evacuation scope and inform the relevant departments in writing to temporarily stop the relevant formalities concerning industrial and commercial business licenses, building approval, transfer or change of property right and right to use, removal into the affected area, division of families, and so on, within the affected areas. There is an exception to those people who need to register in the local police station or remove out from the affected area as a result of birth, demobilization of armymen, marriage, etc. All the civil works under construction within the affected area shall stop immediately. The Administrative Department on Housing Property Rights shall conduct the examination and verification of the property rights of houses within the affected area.

The period for temporary stopping the transactions shall not be more than six weeks. If there is no notice when the period expires, the temporarily stopping measures shall be removed. All the formalities going through within that period without approval shall not be used as the supports for demolition and relocation compensation.

Article 10 If any units or individuals need to get the permission for building demolition, they shall file an application and submit the following materials to the Building Demolition Administrative Department. (1) Approval documents prescribed by the State; (2) The demolition plan and proposal; (3) Resettlement Schemes; (4) Description of the examination of the property right; (5) Certificates for the demolition compensation capital and replacement houses.

Upon receiving the application, the Building Demolition Administrative Department shall make a decision on whether to approve or not within 15 days. If the approval is made, the Department shall issue the Permit and publish the Announcement on Building Demolition.

Article 11 Only after the Demolition Units obtains Qualification Certificate for Building Demolition, can they implement demolition. Or if they cannot acquire the Qualification Certificate for Building Demolition, they can entrust the agencies with the building demolition qualification certificate to implement demolition. There is an exception for people to demolish their own houses and auxiliary buildings with property rights for constructional needs.

Only after acquiring the Certificate for Building Demolition verified and issued by the Building Demolition Administrative Department, can the building demolition staff implement the demolition. The affected people have the right to refuse to negotiate the relevant issues on demolition and relocation with the staff without the Certificate for Building Demolition.

Building Demolition shall be undertaken by the construction unit which has the conditions for guaranteeing the safety. The person in charge of the construction unit shall be responsible for the

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safety.

Article 12 The demolition organization established by the Demolition Unit for houses demolition is forbidden to implement the administration over demolition and relocation.

Article 13 Before the implementation of building demolition, the Demolition Unit shall inform the affected people in written form the issues on demolition and relocation in accordance with the Announcement on Building Demolition, and ensure the work of measurement and evaluation of the houses and buildings within the affected area, conduct surveys and make registrations.

Article 14 The Demolition Unit and the people and tenants affected by the demolition shall sign the demolition and evacuation compensation and relocation agreement according to the Methods. This agreement shall include the compensation method and compensation amount, relocation housing areas and site, schedule, way and period of payment, responsibilities for against the contract and other items necessary to be covered by the parties concerned.

The Demolition Unit shall publish the issues on demolition and relocation compensation and accept the monitoring of the public.

Article 15 The Demolition Unit shall strictly implement building demolition in accordance with the evacuation scope approved by the Planning Department. No enlargement or shrinkage of the evacuation scope is allowed. The evacuation period specified in the building demolition announcement shall not be extended.

Article 16 Within 3 months after the completion of the compensation and relocation agreement, the Demolition Unit and the affected people shall apply to the House Property Rights Administrative Department and Land Administration Department respectively for the formalities of canceling, transferring and changing of the house property right and right to use the land. The Demolition Unit shall fill in and report the forms of relocation and compensation timely, completely and accurately, and make files of compensation and relocation information. Within 6 months after the relocation, the Demolition Unit shall submit the relocation materials and files to the Building Demolition Administrative Department, which shall establish and improve the demolition and relocation archives system.

Article 17 If there are other prescriptions in the laws and regulations on the demolition of social undertaking facilities, urban public facilities, military facilities, houses of compatriots, churches, temples, cultural relics and historic sites, or cutting of trees and removal of the ancient and famous trees, follow the relevant prescriptions.

Article 18 The he Building Demolition Administrative Department shall conduct examinations on the demolition and relocation activities. The examinees shall provide the real information and data, the examiners shall have the obligation to keep the technical and professional secrets for the examinees.

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Chapter III Relocation for Building Demolition

Section 1 Monetary Relocation / Cash Compensation

Article 19 Monetary relocation means to convert the value of the demolished house into money and pay to the affected people directly in cash.

Article 20 The formula for calculating the amount of monetary relocation is: Amount of the fund for monetary relocation= Basic price for the common commercial houses in different zonal bits of the affected area X floorage of the demolished house -price difference needs to be paid by the affected people

The basic price for the common commercial houses/apartments in different zonal bits of the affected area will be verified by the Municipal Government and published at the end of the first quarter of a year.

Article 21 The affected people can choose monetary relocation except the following: (1) The affected people who share the same house property right, or the different users of the same affected state-owned house can not reach an agreement on the options of relocation methods; (2) The property right of the affected house is in disputes or undefined, or the house property right owner disappears; (3) The house property right owner and the user of the same affected house can not reach an agreement on the options of relocation methods; (4) For the demolition of the house with a mortgage, the mortgagee and mortgagor have not re-signed the mortgage contract or the mortgagor has not paid off the debt.

Article 22 Within 10 days after the signing of the monetary relocation agreement for public building demolition, the demolition unit shall deposit the monetary relocation fees, in the name of the holders of the proper right of the demolished houses, in the bank account of the Municipal Housing Funds Administrative Center.

Article 23 For the demolition of public houses and buildings, if the owners want to purchase houses with the monetary relocation fees, they shall submit the monetary relocation agreement for public houses’ demolition, house purchase contracts and deposit receipts to the Municipal Housing Funds Administrative Center, which in return, shall pay the house purchase funds within the amount of deposit in according to the house purchase contracts.

Article 24 Within 10 days after the signing of monetary relocation agreement for private houses demolition, the demolition unit shall give the monetary relocation fees to the holders of the proper right of the demolished houses.

Article 25 It shall be considered as the house relocation to purchase the new apartment in the City with the monetary relocation fee.

Section 2 House Relocation

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Article 26 The lump-sum house relocation means to relocate the affected people in the relocation houses for one time without relocating them in the transitional houses or returning them to the original residential place after the completion of the project.

Article 27 For demolition of residential houses of the affected people, the relocation shall base on the original floorage of the demolished house and be conducted according to the following regulations: z The property right certificates and lawful leasing evidences of the demolished houses shall be used as the base to count the number of the affected households; z The standard types of relocation apartments have the floorage of 45m2, 60m2, 75m2, 90m2, and 105m2 respectively. The demolished house with a floorage which is more than 105m2 can be relocated by more than one apartment; z The standard types of relocation apartments shall be in conformity with the national construction standards. z The lump-sum relocation, determined on the different zonal bits classifications where the demolition happens, shall be carried out in the standard types of relocation apartments with floorage of the original floorage of the demolished house plus the increased floorage within the range appraised by the municipal people’s government.

After the relocation in the standard types of relocation apartments, if the actual increased floorage of the affected people is less than 7m2, they can be relocated in the relocation apartment with the type one level higher.

Article 28 For the demolition of leased residential house, if the property right owner requires for exchange of the property right, the original leasing relation shall be maintained, not including the case which is not maintained according to the contract though. If the property right owner doesn’t require for the exchange of the property right or monetary relocation, the Demolition Unit shall relocate the tenant and give compensation to the property right owner.

Article 29 For demolition of houses for commercial use, the relocation shall be carried out according to the following regulations: z For demolition of houses of commercial or service industries, normally lump-sum relocation is carried out and the relocated area is increased within the prescribed range. However, if the demolition unit is to construct houses for commercial use with the functions, layout and structure of the houses and the contents and level of the business all suiting the affected people, the demolition unit shall relocate the affected people on the newly constructed houses for business; z For the relocation of houses for commercial use, the relocated people shall accept the construction layout and business purposes of the relocated houses; z For the demolition of the open houses with front space for commercial use, if the floorage of the demolished house is less than 20m2, monetary relocation shall be chosen, but the affected people can choose to be replaced with houses if they are willing to paying for the surplus area (the lost area is deducted) at the price of the newly-developed commercial house; z The affected people who have changed the houses for non-commercial use to commercial use without the approval of the Municipal Urban Planning Management Bureau and confirm of the Municipal Real Estate Administrative Bureau shall not be replaced with the houses for commercial use.

Article 30 For the key projects of the State for which the unified building demolition is organized by the government, and the construction of specialized urban public facilities which needs to demolish

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the buildings and houses, the relocation means, replacement location and compensation standards shall be enacted separately by the Municipal People’s Government in line with the nature and construction period of the projects.

Article 31 For demolition of the house that has property right disputes, undefined property right and the whereabouts of the holder of the property right is unknown, which cannot be settled within the removal period prescribed in the Announcement for Building Demolition, the Building Demolition Administrative Department shall organize the parties concerned to make surveys and registration of the demolished house and apply for the Notary Office to conduct the evidence preservation, and the demolition unit shall work out the compensation and relocation plan and implement the demolition first upon approval of the Building Demolition Administrative Department.

Article 32 For the exchange of the property right of the demolished house with a mortgage or pledge, the parties concerned shall sign the mortgage or pledge agreement again. If no agreement can be reached within the period prescribed in the Announcement for Building Demolition, the demolition unit shall implement the demolition in accordance with Article 31 of the Methods.

Article 33 For demolition of the rural residents’ houses that are located in the junction area of the urban districts and suburbs or within the planned development area for the short term, the demolition and relocation shall be uniformed carried out according to the Urban Plan.

If the affected people have been allocated the plots to construct the residential houses and the area of the house has reached the set standards, only compensation instead of relocation shall be given.

Article 34 The prices for the relocated houses are calculated according to the following regulations: (1) If the affected people who own the property rights require for the exchange of property rights, the same floorage and the floorage that needs to be increased in lump-sum relocation are appraised based on the construction and installation cost of the replaced house; floorage increased by relocation in the standard type of house nearby is calculated based on 80% of the cost price; floorage increased by the relocation in the house type one level higher is calculated based on the cost price; floorage increased as a result of being provided with more than one apartment or other reasons is calculated based on the commercial house price. (2) Under the condition the property right holder and the user is the same person, the person does not require exchange of property rights and monetary relocation but requires to rent the relocated houses, or the tenants of public houses want continue renting the relocated houses, distribution cost is not charged for the same floorage and the floorage to be increased in lump-sum relocation; while the distribution cost is charged for the extra floorage at 25% of the construction and installation cost of the relocated houses. For owners of private houses and tenants of private houses that do not carry out exchange of property rights, distribution cost is charged for the same floorage and the floorage to be increased in lump-sum relocation at 15% of the construction and installation cost of the relocated houses and 25% for the extra floorage. (3) For non-residential houses compensated by exchange of property rights, the lost floorage shall be returned by settling the price difference due to different structures according to the replacement price; If the replaced house is larger than the lost one, the extra floorage shall be paid by the affected people at the prices of commercial houses.

Article 35 No relocation or compensation shall be given to the demolition of the illegal buildings and structures or the temporary buildings which have exceeded the period of use, and the demolition shall

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be undertaken by the owners or users themselves. If the party concerned refuses to demolish, the demolition unit shall implement the demolition according to the law. For demolition of the temporary buildings which have not exceeded the period of use, an appropriate amount of compensation shall be given to the affected people, but no relocation shall be given.

Article 36 For the projects which belong to the State key projects or the construction of urban public facilities which need to demolish the buildings and houses, if it is really difficult to undertake the lump-sum house relocation, temporary transitional relocation can be provided to the affected people upon approval of the Building Demolition Administrative Department.

The transitional houses shall be provided by the demolition unit, but it shall be allowed if the affected people arrange the living places for the transitional period by themselves.

The temporary transitional period shall not be longer than two years except for the readjustment of the national policies or the unexpected force majeure. And the temporary transitional period for relocation in high-rises shall not be longer than two years.

Article 37 The relocation houses and apartments shall be equipped with complete facilities and put into use only after the comprehensive check of the construction as acceptable when the buildings are completed.

On delivering the relocation houses to the affected people to put into use, the demolition unit shall provide the House Quality Assurance and House Use Instruction.

Chapter IV Compensation for Building Demolition

Article 38 The compensation fees for building demolition shall, in accordance with the types, classifications, projects and standards for the demolished houses and on-the-ground attachments, be enacted by the Municipal People’s Government under the principle of fair, rational, equivalent and non-gratuitous and in line with the specific conditions of Fuzhou Municipality.

Article 39 The compensation fees for building demolition shall be paid according to the following prescriptions: (1) For the affected person who own the property right of the demolished house and want the exchange of house property right as the compensation means, the compensation fee shall be paid at full replacement cost of materials and labor with no deduction for depreciation or salvageable materials for the area of the relocated house with the size equivalent to that of the lost house; (2) The affected person, who is the owner as well as the user of the demolished house, requires to rent the relocated house instead of the exchange of house property right or the cash compensation, he or she shall be compensated at full replacement cost of the area of the lost house with no deduction for depreciation or salvageable materials. If the owner and the user of the demolished house are two different people, who do not require the exchange of house property right, they shall be compensated at full replacement cost of the area of the lost house with no deduction for depreciation or salvageable materials; (3) The demolished state-owned houses which belong to the state organs or are under the Real Estate Administrative Bureau shall be compensated with the exchange of house property right

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with the area equal to the area of the lost houses plus the increased area for lump-sum relocation. No negotiation shall be required.

Article 40 If the affected people arrange living places by themselves during the prescribed transition period, the demolition unit shall pay them a subsistence allowance for their temporary settlement. If the demolition unit cannot relocate the affected people within that period, from that month when the prescribed transition period expires, shall pay three times of the subsistence allowance for the temporary settlement to the affected people monthly. If the demolition unit cannot relocate the affected people more than six months after the expiring of the period, six times of the subsistence allowance for the temporary settlement shall be paid to the affected people monthly. If it is the demolition unit who provides the transitional houses to the affected people, and in case the demolition unit cannot relocate the affected people after the expiring of the transition period, the demolition unit shall pay the affected people a subsistence allowance for their temporary settlement according to the monthly standard from that month when the prescribed transition period expires.

If the affected people are given the relocation for one time, the demolition unit shall give them the cash assistance to transport household effects. If they are temporarily relocated, the demolition unit shall pay them double of the cash assistance.

Article 41 If the enterprise or business has to stop the production or business as a result of building demolition, the demolition unit shall, during the period of business/income generation disruption, give cash compensation to the staff on the payroll of the affected enterprise in accordance with the lowest salary/wage standard of the city, amount of social insurance fund and the price allowance set by the state, give the retirees the regulated medical and insurance fees and give the economic subsidies to the self-employed businesses in accordance with the lowest salary/wage standard of the city. The above affected people shall be given cash assistance for removal.

If the affected people participate in the demolition meetings or the removal, they shall be given cash allowance for delay their work for 3-5 days.

Chapter V Disputes Settlement and Legal Liabilities

Article 42 In case there are disputes between the demolition unit and affected people on compensation means, amount of compensation fees, area for replacement houses, replacement location, means of removal and transition and transitional period, and no agreements can be reached through consultation and negotiation between two parties, the parties concerned can initiate legal proceedings to a people's court directly, or ask for the Building Demolition Administrative Department to make an adjudication. If the affected person is the Building Demolition Administrative Department, the dispute shall be adjudicated by the Municipal People’s Government.

If the party concerned refuses to accept the adjudication, the party may initiate legal proceedings to a people's court within 15 days of receiving the notification on the decision regarding the disputes. During the litigation period, if the demolition unit has relocated the affected people or provided the

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transitional houses, the implementation of building demolition shall not be stopped.

If any disputes rise in the fulfillment of Demolition and Relocation Compensation Agreement, the party concerned can initiate legal proceedings to a people's court according to the law.

Article 43 Within the evacuation period stipulated in the Announcement for Building Demolition or decided by the adjudication made according to the first section of Article 42 of the Methods, if the affected people have no proper reasons to refuse the demolition, the Municipal People’s Government can make a decision to order them to demolish within the given period of time. If the demolition is not implemented within that period, the Building Demolition Administrative Department can apply to the people's court for a compulsory enforcement. If the demolition involves the urban infrastructure, the Building Demolition Administrative Department can apply to the people's court for a compulsory enforcement after getting approval of the Municipal People’s Government.

Article 44 If the Demolition Unit violates these regulations and does any of the following, the Building Demolition Administrative Department shall give a warning, order to stop the demolition, revoke the relevant certificates on building demolition, confiscate the illegal income, or give a penalty of 1%-5% of the total compensation fund for demolition and relocation according to the serious nature of the case. (1) To implement the building demolition without approval and without acquiring the Permit for Building Demolition, or without according to regulations specified in the Permit for Building Demolition; (2) To entrust the units without the Qualification Certificate for Building Demolition to implement the demolition, or implement the building demolition by itself without acquiring the Qualification Certificate for Building Demolition; (3) To force a building demolition without giving compensation to the affected people or relocating them, or to implement the building demolition without according to the approved evacuation scope; (4) To increase or decrease the compensation standards without permission, enlarge or shrink the scope for compensation and relocation; (5) To dodge being monitored and supervised, sell the replacement apartments without approval, or transfer or appropriate the relocation funds; (6) To relocate the affected people beyond the prescribed period as a result of the replacement houses with bad qualities or incomplete supporting facilities; (7) To refuse to submit and report the house demolition and relocation forms or relocation data files according to the relevant regulations.

Article 45 If the Demolition Unit exceeds the removal period without proper excuses or extends the transitional period by themselves, the Building Demolition Administrative Department shall order them to correct and give a warning to them, or give a penalty of 3000-5000 yuan(RMB). The Demolition Unit shall be responsible for the compensation if the economic losses of the affected people are incurred as a result of the mistakes of the Demolition Unit.

Article 46 When delivering the houses to be used by the affected people, the Demolition Unit shall

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bear the responsibility for compensation if it can not provide the House Quality Assurance and House Use Instruction in time, which results in the losses of the affected people.

Article 47 If the demolition has destroyed the surrounding buildings, structures and other facilities, the Demolition Unit shall be responsible for making renovations or give the corresponding compensation.

Article 48 If the affected people violate the agreement to demolish the houses and the attachment without approval to get the constructional materials, or refuse to return the transitional houses, the Building Demolition Administrative Department shall order them to correct and return the acquired constructional materials or the transitional houses within the given period of time, and give a warning to them, or give a fine of 300-1000 yuan(RMB).

Article 49 If the party concerned refuses to accept an administrative penalty, the party may, within 60 days of receiving the notification on the decision regarding the penalty, apply for a reconsideration by the administrative department at a higher level of the authority that made the penalty. If the party concerned refuses to accept the reconsidering decision, the party may initiate legal proceedings to a people's court within 15 days of receiving the notification on the decision. The party concerned may also file a lawsuit directly in the people's court. If the party neither apply for a reconsider, nor initiates legal proceedings or complies with the penalty within that period, the authority that has made the decision of administrative penalty shall apply to the people's court for a compulsory enforcement.

Article 50 Whoever disturbs the order of demolition work, incites the masses to make troubles, destroys or seizes the assets, forcibly occupy the houses, or obstructs the staff of the Building Demolition Administrative Department to perform the official duties, shall be given a penalty by the police according to the Administrative Punishment Statues of the Public Security. If the offence is serious enough to constitute a crime, the criminal responsibilities shall be investigated in accordance with the law.

Article 51 Dereliction of duty, abuse of power for personal gains, demand or reception of bribery, practice of favoritism and blackmail by the Building Demolition Administrative Department and its staff and staff of the demolition agency shall be given the administrative punishment. If the offence is serious enough to constitute a crime, criminal sanctions will be applied according to the criminal law.

Chapter VI Supplementary Provisions

Article 52 Increased area for lump-sum relocation, compensation price for building demolition, standards for subsistence allowance for the temporary settlement and subsidy for removal are approved by Fuzhou Municipal People’s Government authorized by Fujian Provincial People’s Government.

Article 53 The Methods shall be explained by Fuzhou Municipal People’s Government.

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Article 54 The administration of the building demolition and relocation of the counties or cities proper under the jurisdiction of Fuzhou Municipality, shall implement according to the Methods.

Article 55 The Methods shall come into force since the promulgation. The Administrative Regulations of Urban Building Demolition and Relocation of Fuzhou Municipality, which was adopted by the Standing Committee of Fuzhou Municipal People's Congress on Sept. 15,1991, shall be abolished at the same time.

For the building demolition whose demolition announcement has been published before the effective date of these methods, compensation and relocation for building demolition shall be implemented according to the original methods.

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Appendix 3. Summary of Meeting Notes of Village Meetings for the Land Acquisition and Resettlement of the Nantai Island Inland Rehabilitation Project

Time: July 4th, 2003 Place: The conference hall of the Urban Management Law Enforcement Bureau of Cangshan District Participants: Carders of the affected villages, representatives of villagers, and representatives of enterprises and stores in Chengmen County, Gaishan County, Luozhou County and Cangshan County and Xiadu Community affected by the project; Staff members from Fuzhou Municipal Urban Management Law Enforcement Bureau, Inland River Management Office of Fuzhou, Urban Management Law Enforcement Bureau of Cangshan District, Inland River Management Office of Cangshan District, and ADB Project Management Office of Fuzhou.

With an aim to let the affected villages and communities, businesses and individuals be aware of the content and purposes of Naitai Island Inland River Rehabilitation Project, let the affected households have a comprehensive understanding of the impact scope of land acquisition and house demolition, compensation standards, compensation methods, ways of payment of land acquisition and house demolition, relevant policies and regulations on Relocation on the Spot and Relocation in Other Places, and solicit the opinions of all parties through face-to-face contact and reach an initial understanding, Urban Management Law Enforcement Bureau and ADB Project Management Office of Fuzhou printed and distributed the Information Brochure on the policies and regulations related to land acquisition and house demolition and compensation and resettlement methods proposed to adopt. Meanwhile, they gave an introduction of the general information of the project to the representatives and answered their questions on policies on compensation and resettlement for land acquisition and house demolition. After a full discussion, the participants reached an initial agreement and understanding on the relevant issues on land acquisition and house demolition.

The following is the summary of the minutes of the discussion, requirements and suggestions of each party and the initial understanding:

1. The participants reached an agreement on the legal basis the project will adopt for land acquisition and house demolition. All agreed that the following laws and regulations would be adopted as the basis for land acquisition and house demolition: Land Administration Law of PRC revised in the 4th Session of the 9th Standing Committee of the National People’s Congress on Aug. 29th, 1998; Implementation Regulation of Land Administration Law of PRC adopted in the 12th Standing Conference of the State Council on Dec. 24th, 1998; Administration Regulation of Urban Building Demolition and Relocation adopted in the 40th Standing Conference of the State Council on June, 6th, 2001; Administrative Methods of Urban Building Demolition and Relocation of Fuzhou Municipality approved by the 20th Session of the 9th Standing Committee of the People’s Congress in Fujian Province on July 28th, 2000. 2. The local affected people expressed their understanding on the necessity of the project construction, but required minimizing the adverse impacts on the locality and reducing the amount of house demolition. They hoped that the relevant departments could ensure

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that all the losses of the affected households will be rationally compensated to keep the living standards of the local residents from being lowered than the original ones. The government and construction agency expressed that they would respect fully the wishes of local residents as the ultimate objective of this project was to benefit people. They promised that they would reduce the amount of house demolition as possible as they can and protect all the rights and entitlements of the affected through a series of measures. 3. The majority of the representatives expressed their wishes to be relocated on the spot and hoped that the local government and construction agency could provide the employment opportunities to the affected households whose living existence suffer from the construction of the project. 4. As for the specific compensation amount, resettlement methods and options for employment opportunities, the participants hoped that another round of discussion could be held after further understanding the relevant information and policies and regulations. They hoped that the relevant departments could provide the scheme options for discussion as soon as possible.

Appendix: The list of the Participants: Name Unit Zhang Shuidi Fuzhou Municipal Urban Management Law Enforcement Bureau Wu Jianyu Fuzhou Inland River Management Office Huang Lihua Urban Management Law Enforcement Bureau of Cangshan District Lin Zhenzhang Inland River Management Office of Cangshan District Wang Yingxia ADB Project Management Office of Fuzhou Wu Sunce Carder of Chengmen Town Chen Jianguo Carder of Lulei Village Pan Zhimin Carder of Pandun Village Lin Gujian Carder of Chengmen Village Huang Shusheng Villagers’ Representative of Lianban Village Lin Lijing Villagers’ Representative of Shishan Village Lin Qihua Representative of Enterprises Zhang Youliang Carder of Ganshan Town Zheng Gexing Carder of Gaohu Village Lin Zhongqiang Carder of Wushan Village Huang Xingzai Carder of Pokou Village Li Dengfeng Villagers’ Representative of Baihu Village Huang jinsheng Villagers’ Representative of Zulan Village Xu Cunkai Representative of Enterprises Ye Dajian Carder of Village Liu Lisen Carder of Village Chen Xianyun Villagers’ Representative of Qianyuan Village Chen Chuanfu Villagers’ Representative of Duyuan Village

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Chen Fanghai Carder of Cangshan Town Lin Kunyu Carder of Xianfeng Village Yang Lin Villagers’ Representative of Xianfeng Village Chen Jianxin Representative of Enterprises Lin Houdong Carder of Xiadu Community Jiang Lin Carder of Gangtou Community Lin Ping Villagers’ Representative of Gangtou Community

Fuzhou Municipal Urban Management Law Enforcement Bureau

July 4th, 2003

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Appendix 4. Summary of the Negotiation Conference on Resettlement and Restoration Plans of the Inland River Rehabilitation Project

Time: August 12th, 2003 Place: Conference Hall of Gaishan Township Government, Cangshan District participants: Leaders of all affected villages by the Project, representatives of villagers, and representatives of enterprises and shops from the counties of Chengmen, Gaishan, Luozhou and Cangshan, and 9 representatives from Fuzhou City Management and Law Enforcement Bureau, Fuzhou Inland River Management Office, Fuzhou Cangshan District Management and Law Enforcement Bureau, Cangshan District Inland River Management Office, FPMO, and Fuzhou Engineering Consulting Center.

In order to well resettle inhabitants affected by the inland river rehabilitation project and restore their income, and negotiate with inhabitants affected by land acquisition and resettlement and establish resettlement and restoration plans, Fuzhou Municipal Management Enforcement Bureau and Fuzhou City Appearance Development Company, with cooperation of Fuzhou Municipal Engineering Consultancy Center which is responsible for composing of the resettlement and restoration plans, and after many times’ communication, negotiation and inquiries with all affected parties, has held negotiation conference on the resettlement and restoration plans together with governments of the towns, local villagers’ committee, and representatives of villagers and enterprises within the affected area. At the conference, the opinions and suggestions of the affected villagers and representatives of different units were presented, discussion on proposals put forward by Fuzhou Municipal Engineering Consultancy Center was held, and the agreement on the establishment of resettlement and means of living restoration plans was reached. The summary of the conference is as follows:

Staff of Fuzhou Municipal Management Enforcement Bureau introduced general situation of the project, contents of the project construction, implementation period, fund-raising conditions of the project, and laws, regulations and policies of the State and Fuzhou concerning resettlement and restoration of means of living. PMO staff introduced ADB’s requirements on resettlement and restoration, and specified that ADB demands that the local governments should work out feasible resettlement and restoration plans and ensure that the living standard of the affected inhabitants will not drop after implementation of the project.

Staff of Fuzhou Municipal Engineering Consultancy Center introduced the land acquisition and resettlement scope of the project and explained the proposal of resettlement and restoration plans submitted to the conference for discussion.

Leaders of the villages and representatives of villagers and different units held discussion on related laws, regulations and policies and proposals of resettlement and restoration plans, and demanded that the government and the construction unit should try to provide various forms of resettlement for the affected people, the actual compensation standard should be decided based on the actual situation of the affected people instead of being limited by related

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regulations, and employment should be arranged for those whose means of living are affected by land acquisition and resettlement. On behalf of the government and construction unit, Fuzhou Municipal Management Enforcement Bureau and Fuzhou Municipal City Appearance Development Company agreed to preferentially consider interests of the affected people and promised that all affected people will get just and reasonable compensation and resettlement.

The construction unit and representatives of the affected people have reached agreement on resettlement and restoration plans, which is as follows:

1. Principles and targets of compensation for land acquisition and resettlement

Provide just, reasonable and enough compensation for the affected people, at least maintain their existing living standard All affected factors should be considered and reasonably compensated. Special attention should be paid to the group of people whose social status is fairly low.

2. Procedures of resettlement The land acquisition and resettlement plans should be published by the local governments after identification. During the publication period, opinions of the resettled units and people should be considered and submitted to related departments and those that are reasonable should be accepted. The land acquisition and resettlement should follow the principle of “proper resettlement, reasonable compensation, demolition after resettlement” and should not be carried out before the agreement of the affected people. The demolition and resettlement should be open and just. Tables of all kinds of compensation rates should be put up on conspicuous places so that all affected people and the mass can have a clear idea of them. Special accounts should be established for all compensation for land acquisition and resettlement and measures should be taken to ensure the payment of the compensation.

3. House resettlement For demolition of residential houses, the resettlement is based on the original floorage. For the part of floorage of the resettled house that is the same as the floorage of the original house, the price is calculated based on the construction and installation cost of the resettled house. The forms of resettlement of the houses are chosen by the affected people after negotiation by both sides with consideration of the affected people’s will and the funds and housing conditions of the demolition agency. Different forms to be chosen are: resettlement within the same area (material resettlement), monetary resettlement and resettlement in other area (material resettlement). The project is going to provide the following choices:

Under the condition that the affected people are willing to accept the form of “land exchange”, the village government should choose suitable area and rebuild houses for the affected people based on the general planning of the village. The demolition agency will make cash

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compensation for loss of demolished structures and provide preferential building materials.

For households that are willing to be resettled in different area, the government should arrange economic suitable houses for them in the residential areas nearby. It has been initially planned that 112 sets of existing apartments in No. 6 and No. 7 residential buildings in Jinpu district will be provided by Cangshan House Management Bureau and Cangshan Real Estate Development Company. On the other hand, the government will respect the will of the affected people and try to provide other house resources for the affected people in other locations within the urban area.

For the affected people that require monetary resettlement, or have constructed up-to-standard houses in other area, the demolished houses will be compensated by cash with consideration of the revised price and ages of the original houses, and are not resettled.

Within the regulated transitional period, the demolition agency should pay the temporary resettlement subsidy to the affected people who arrange transitional residence by their own.

Under the condition that the resettled house is not arranged within the planned period, three times the temporary resettlement subsidy should be paid every month since the expired month and six times the temporary resettlement subsidy should be paid if the expiration is longer than six months.

The demolition agency should provide the transitional residence. Under the condition that the resettled house is not arranged within the planned period, the demolition agency should pay the temporary resettlement subsidy by month according to the standard.

For the lump-sum resettlement of the affected people, the demolition agency should pay the removal subsidy, which should be doubled for temporary resettlement.

4. Compensation for land acquisition

Compensation for land acquisition includes land (fish pond) compensation, resettlement subsidy, and compensation for loss of attachments of the land and standing crops. The compensation for land acquisition of the project is calculated as 17 times the average yield of the land of same type (fish pond) in three previous years. The compensation will be paid by cash to the villages. The affected people will be compensated by re-allot of the land within the village according to the principle of “land exchange”. Moreover, the following employment posts will be provided on the basis of respect of the affected people’s will:

Upon completion of the project, 92 posts of long-time maintenance and management of the inland rivers will be provided. During the engineering construction, hundreds of temporary posts will be provided and the local people whose means of living are affected will be employed on a preferential basis. The industrial enterprises in the towns and villages within the project area will employ some

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local villagers. The labour service department of the government of Cangshan District can recommend 885 employment posts for the affected people recently. The employment units include Fuzhou Yiyuan Shoe-making Co. Ltd, Fuzhou Xianglong Shoe-making Co. Ltd., Huakai Fugui Realty Management Co. Ltd., Fuzhou Auto-pass Industrial Co. Ltd., Social Welfare Agency for Mothers and Babies, and Sanxie Precision Mechanical Co. Ltd. etc. The government should try to provide convenient conditions, and support the starting of business of some inhabitants by taking the advantage of chances provided by the construction of new communities and the inland river rehabilitation project.

5. Compensation for operating loss

The compensation for the affected business and stores includes cash compensation for the demolished structures, compensation for removal cost, compensation for termination of working and production and subsidy for loss due to delay of work.

For the termination of business due to the demolition, during the termination period, the demolition agency should compensate the registered staff of the resettled unit with reference to the lowest salary standard of the city, social security rates and price subsidy regulated by the state; pay the regulated medical insurance rates for the retired and compensate the private industrial and commercial units by cash with reference to the lowest salary standard of the city. Those whose business income are affected by the resettlement or engineering construction will be given certain economic compensation with reference to the present operating situation.

6. Compensation and restoration of the affected public facilities

During implementation of the project, if the mainly affected public facilities include electricity lines, telephone lines, roads, landscape and various kinds of underground pipes, the compensation and restoration will be carried out within the resettled communities.

7. Special support measures for people with fairly low social status

For households with fairly low social whose means of living are seriously affected by land acquisition and resettlement, special training subsidy should be provided for them, so as to increase the employment chances especially the employment chances of female. The subsidy is 300 RMB Yuan per capita. For households without means of living, especially households with elderly people, women and children, the government will provide them the living subsidy according to the lowest living security standard, which is 80 RMB Y/capita/month for households with more than one person and 100 RMB Y/capita/month for households with only one person.

8. Subsidy standard of resettlement

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Removal transportation cost: 500 RMB Y/household Loss due to delay of work: 200 RMB Y/household Removal loss subsidy: 100 RMB Y/household Medical care subsidy: 200 RMB Y/household Transitional subsidy for removal: 50 RMB Y/capita/month

9. Compensation standards of various entities are as follows:

Compensation Times and Unit-price of Land Acquisition Unit-price of Unit-price Land Type Yield (kg/mu) Compensation Times Compensation (RMB/kg) (RMB/mu) Land Resettlement Standing

compensation subsidy crops Farmland 2,400 1.84 10 6 1 75,072 Fish pond 1,670 3.1 10 6 1 88,009 Garden 3,200 1.4 10 6 1 76,160 Forest land 40,400

Compensation Standard of Demolition of Houses Simple Brick/wood Wood Frame Brick/concrete Brick/wood Earth/wood Structure Shelf House (RMB/m2) (RMB/m2) (RMB/m2) (RMB/m2) (RMB/m2) (RMB/ m2) (RMB/m2) 650 440 390 260 190 250 200 Electricity Telephone Cable TV Water Meter Meter (RMB/line) (RMB/line) 450 70 216 160

Compensation Standard of Auxiliary Facilities Enclosing Terrace Well Iron Door Pigsty Ground Mass Wall Pond (capita) (RMB/m2) (RMB/capita) (RMB/capita) (RMB/m2) (RMB/m) (RMB/m) 40 400 60 100 45 100 15 Fruit tree Fruit tree Big Banyan Iron Tower Boiler Ordinary Tree Sago Cycas with fruits without fruits Tree (RMB/capita) (RMB/capita) (RMB/capita) (RMB/capita) (RMB/capita)(RMB/capita) (RMB/capita) 300 500 50 80 100 80 100 Temporary Swimming Cooling Tower Temple Fence Transformer Water Pump Storage House Pool (RMB/capita) (RMB/capita) (RMB/m) (RMB/capita)(RMB/capita) (RMB/m2) (RMB/capita) 300 400 15 150 500 300 300

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Relocation Cost Standard of Infrastructures High-voltage Low-voltage Transformer Telecommunication electrical pole electrical pole Note (capita) pole (capita) (capita) (capita) / 10,000 RMB 200,000 RMB 2,500 RMB

151 Resettlement Plan for Fuzhou Inner River Project

APPENDIX: THE LIST OF THE PARTICIPANTS: Name Unit Zhang Shuidi Fuzhou Municipal Urban Management Law Enforcement Bureau Wu Jianyu Fuzhou Inland River Management Office Huang Lihua Urban Management Law Enforcement Bureau of Cangshan District Lin Zhenzhang Inland River Management Office of Cangshan District Wang Yingxia ADB Project Management Office of Fuzhou Song Comgming Fuzhou Engineering Consultion Center Wu Sunce Carder of Chengmen Town Chen Jianguo Carder of Lulei Village Pan Zhimin Carder of Pandun Village Lin Gujian Carder of Chengmen Village Zheng Baolin Villagers’ Representative of Linpu Village Jiang Shengguan Villagers’ Representative of Linpu Village Huang Shusheng Villagers’ Representative of Lianban Village Lin Lijing Villagers’ Representative of Shishan Village Lin Qihua Representative of Enterprises Zhang Youliang Carder of Ganshan Town Zheng Gexing Carder of Gaohu Village Lin Zhongqiang Carder of Wushan Village Huang Xingzai Carder of Pokou Village Li Dengfeng Villagers’ Representative of Baihu Village Huang jinsheng Villagers’ Representative of Zulan Village Xu Cunkai Representative of Enterprises Ye Dajian Carder of Village Liu Lisen Carder of Village Chen Xianyun Villagers’ Representative of Qianyuan Village Chen Chuanfu Villagers’ Representative of Duyuan Village Chen Fanghai Carder of Cangshan Town Lin Kunyu Carder of Xianfeng Village Yang Lin Villagers’ Representative of Xianfeng Village Chen Jianxin Representative of Enterprises Lin Houdong Carder of Xiadu Community Jiang Lin Carder of Gangtou Community

152 Resettlement Plan for Fuzhou Inner River Project

Chen Dewei Representative of Xiateng Community Tang zhuangzhong Representative of Gongnong Community Lin Ping Villagers’ Representative of Gangtou Community Name Unit Zhang Shuidi Fuzhou Municipal Urban Management Law Enforcement Bureau Wu Jianyu Fuzhou Inland River Management Office Huang Lihua Urban Management Law Enforcement Bureau of Cangshan District Lin Zhenzhang Inland River Management Office of Cangshan District Wang Yingxia ADB Project Management Office of Fuzhou Wu Sunce Carder of Chengmen Town Chen Jianguo Carder of Lulei Village Pan Zhimin Carder of Pandun Village Lin Gujian Carder of Chengmen Village Huang Shusheng Villagers’ Representative of Lianban Village Lin Lijing Villagers’ Representative of Shishan Village Lin Qihua Representative of Enterprises Zhang Youliang Carder of Ganshan Town Zheng Gexing Carder of Gaohu Village Lin Zhongqiang Carder of Wushan Village Huang Xingzai Carder of Pokou Village Li Dengfeng Villagers’ Representative of Baihu Village Huang jinsheng Villagers’ Representative of Zulan Village Xu Cunkai Representative of Enterprises Ye Dajian Carder of Village Liu Lisen Carder of Village Chen Xianyun Villagers’ Representative of Qianyuan Village Chen Chuanfu Villagers’ Representative of Duyuan Village Chen Fanghai Carder of Cangshan Town Lin Kunyu Carder of Xianfeng Village Yang Lin Villagers’ Representative of Xianfeng Village Chen Jianxin Representative of Enterprises Lin Houdong Carder of Xiadu Community Jiang Lin Carder of Gangtou Community

153 Resettlement Plan for Fuzhou Inner River Project

Lin Ping Villagers’ Representative of Gangtou Community

Fuzhou City Management and Law Enforcement Bureau August 12th, 2003

154 Resettlement Plan for Fuzhou Inner River Project

Appendix 5 Resettlement Information booklet

Asian Development Bank Loan Project

Fuzhou Environment Improvement Project

Nantai Island Inland Rivers Rehabilitation

Subproject

Information Brochure on Land Acquisition and Resettlement Plan

Fuzhou Urban Visual Construction Development Company

September 2004, Fuzhou

155 Handbook of Resettlement Plan

Publicity Subject of the Brochure

This Brochure is aimed to provide the following relevant information the affect people are concerned with: — The necessity and Essentiality of Nantai Island Inland River Rehabilitation Project — Project Capacity and Construction Scope — Investment Scale of Nantai Island Inland River Rehabilitation Project — Chinese Laws and Regulations, and Resettlement Policies of the ADB Loan Project. — This project will improve the natural environment and the investment environment. Meanwhile, it will protect the rights and interests of the affected people to the largest extent.

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1. Brief Information of the Project 1.1 General Introduction Supported by the loan from Asian Development Bank, Nantai Island Inland River Rehabilitation Project will rehabilitate the inland rivers in Nantai Island with the roposed scope covering thirteen major inland rivers in Cangshan central area, Gaishan area, Gaohu area and Luozhou-Chengmen area. The total length of these rivers is 45.86km, including Gangtou River, Longjing River, Yuejin River, Pandun River, Linpu River, Lianban River, Puxia River, Mazhou River, Baihuting River, Yixun River, Luocheng River, Luozhou River, Lulei River, etc. 1.1.1The necessity of the Project Nantai Island is located in Fuzhou Min River North & South Bank. The topography in the island is low-lying and none of the waterways is dominant with anfractuous inland rivers. In administrative management Nantai Island belongs to Fuzhou Cangshan District. The precinct area is 142km2 with about 118.2km2 of land area. The population in Nantai Island is 352,000 in which 187,700 are urban population and 164,300 are rural population. In the implementation of Fuzhou development strategy, Nantai Island is very important to Fuzhou urban development. At present, according to Fuzhou urban planning, Fuzhou Municipal Government and Cangshan District Government decide to develop and build Nantai Island to promote Fuzhou economic development. Nantai Island Inland Rivers Rehabilitation Project is one of basic works to improve the local natural environment and investment environment. Fuzhou Municipal Government has attached much importance to this project, and put it into important projects for local people.

1.1.2 Key Objective of the Project –To Improve the Flooding Drainage Facilities and Conditions of Inland Rivers Flood dike in Nantai Island includes nine bank sections with the total length of 47.92km. Its primary function is to protect people’s life and property. At present, there are mostly four bank sections whose protection area are all above ten thousand mu (667ha), including Jianxin north bank section and south bank section, Gaishan north bank section and south bank section. Protection areas of other bank sections are between thousand mu

157 Handbook of Resettlement Plan and ten thousand mu (66.7~667ha). There are five existing drainage pump stations with 1178kw of total load capacity, and fourteen facilities. There are thirty-nine drainage floodgates, 15 of which are in North Bank and 24 of which are in South Bank. However, as far as it goes, the drainage facilities are relatively weak so that inner flooding in different degree will always come into being whenever rains. Moreover, many of Nantai Island inland rivers suffer from serious siltation, which has caused water drainage problems; and flood drainage capacity of 80% inland rivers is lower than the standard of once per two years. Existing inland river siltation and serious river jam from human behavior have caused the decrease of flood drainage capacity year after year so that the drainage capacity can not meet the need of agricultural production and sustaining development of urban economy. Anfractuous inland rivers are proposed to be straight, dredged up and broadened for safeguarding people’s life and production and ensuring the sustaining development of economy. Thirteen dominant waterways will be rehabilitated in order to enhance the flood control capacity of inland rivers, reduce the disaster from water logging, improve Nantai Island natural environment and resident environment, increase people’s life quality and develop a good investment environment.

1.2 Scope and Content of Project Construction The land area of Nantai Island is about 118.2 hactares of which 78.82 is the area of controlling water logging. Thirty-one inland rivers in the whole Nantai Island need to be rehabilitated. Proposed scope of the project included thirteen major inland rivers in Cangshan central area, Gaishan area, Gaohu area and Luozhou-Chengmen area. The total length of 13 rivers is 45.86km, including Gangtou River, Longjing River, Yuejin River, Pandun River, Linpu River, Lianban River, Puxia River, Mazhou River, Baihuting River, Yixun River, Luocheng River, Luozhou River, Lulei River, etc.

1.3 Social and Economic Benefits of the Project Nantai Island Inland River Rehabilitation Project is an infrastructure project to improve Nantai Island environment, and helpful to prevent people’s life and properties

158 Handbook of Resettlement Plan suffering from the flood disaster. Its construction will have an active effect on improving Nantai Island resident environment and investment environment, people’s life quality, economic construction and social development of Cangshan District. Moreover, it will also bring obvious economic, environmental and social benefits. Inland rivers rehabilitation in Nantai Island will improve significantly the flooding drainage capacity in the whole Nantai Island and protect thousands of people’s life and properties. The rehabilitation project will also help the land development in the island. Especially farmland, factories, shops and other production or life establishment in the project areas will be protected from the flood disaster. After inland river rehabilitation, parks and landscape with big areas will be increased greatly and inland river landscape will improve ecological environment and urban scenery.

1.4 Land Acquisition and Resettlement Impacts The project includes thirteen inland rivers with the length of 45.86km. Land acquisition scope is in ten meters wide area along the two banks of thirteen inland rivers. Thirteen inland rivers are respectively: Gangtou River, Longjing River, Yuejin River, Pandun River, Linpu River, Lianban River, Puxia River, Mazhou River, Baihuting River, Yixun River, Luocheng River, Luozhou River and Lulei River. The project scope involved four townships (i.e. Gaishan, Chengmen, Luozhou and Cangshan) and a street (i.e. Xiadu street). The thirteen inland rivers rehabilitation project exist land acquisition and resettlement more or less. Overall resettlement information is listed in the following. • The project will acquire land with a total area of 1106.8mu (not including the land area of housing, companies and other auxiliaries). • Of the total 1106.8mu (equivalent to 73.79 hactares) permanent acquired land, there are 338.22 mu (22.55 ha) farmland, 464.75 mu (30.98 ha) water pond, 221.3 mu (14.75 ha) orchard land, 17.61 mu (1.12 ha) woodland, and 64.92 mu (4.33 ha) others. 1.5 Other Background Information and Materials Related to the Project (Legal Background) The construction of Nantai Island Inland River Rehabilitation Project is mainly based on

159 Handbook of Resettlement Plan the following: • Flooding Control Law of PRC • National Standard of Flooding Control GB50201-94 • Dike Engineering Design Criterion GB50286-98 • Fujian Provincial Temporary Regulation on Urban Drainage Design • Drainage Engineering Plan in Cangshan District in Fuzhou • Fuzhou City Proper Longitudinal Plan • Water Flushing Plan Proposal in Jinshan New District in Fuzhou Laws and regulations related to land acquisition: • Land Administration Law in the PRC • Implementation Regulation of Land Administration Law of PRC • The Implementation Methods of Land Administration Law of the People's Republic of China in Fujian Province • Administrative Methods of Urban Building Demolition and Relocation of Fuzhou Municipality • Technical Criterion of Urban House Value Assessment in Resettlement in Fujian Province • Regulation of Purchased House Property Right Registering in Money-Compensation Resettlement

1.6 Measures and Designing Principles to Avoid or Decrease Relocated People During the implementation process of this project, relocation of houses and people and losses of asset cannot be avoided and it will bring some negative impact to the local residents. The project owner and design institute have made great effort in selecting the site of the project and optimizing the design based on the project requirement and financial resources in order to decrease the arable land occupation and house relocation and to keep the number of resettled people at a lowest level. The design institute did a lot of preliminary work according the demand of flood control project before the project proposal and preliminary feasibility study. Their work has covered landform measurement of upstream of

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Min River, water surface line demonstration, hydraulic model testing and programming of some new flood control dams. In the engineering feasibility study the design principle of both meeting the demand of project construction and in the same time keeping the number of resettled people at the lowest level was adopted. • The chief target of inland river rehabilitation should be to satisfy the demand of urban construction. With the designed standard, the principle is that there should be no overflow of flood water. • Inland river rehabilitation should be combined with urban construction 、 transportation、sewage treatment、land development and environment protection for the purpose of integral treatment. • The inland rivers’ role of storing and retaining floodwater should be fully played and it should be focused on releasing floodwater. Resettlement and land occupation should be kept at the lowest level in order to reduce the cost and make best economic and environmental benefit. • In compliance with the inland river controlling line approved by Municipal Planning Bureau, the existing river course will be rehabilitated. In the same time of satisfying the demand of releasing floodwater, the aspect of landscape will also be considered. The project formerly covers 31 inland rivers. After investigation and consultation with local residents, the design has been amended and optimized in order to keep the arable land occupation and resettlement at a lowest level. 13 trunk inland rivers are finally included in this project and the number of relocated people is reduced.

2. Principles and Objectives of Resettlement and Compensation 2.1 Principles and Objectives of Land Acquisition, Resettlement and Compensation of the Project According to the laws, regulations of the Chinese government and policies of ADB, the compensation and entitlement principles of the project are as follows: • Provide fair compensation and entitlement for the affected people, at least maintain their living standard before the resettlement and try to improve it. • Reduce the temporary land acquisition and affected period to the minimum.

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• All legal and illegal affected people should be taken into consideration and calculation scope. • After the land acquisition, if the land is re-allot or farming is the means of living, then the per capita land occupation should be enough for maintenance of the living standard. • If the per capita land occupation is not enough for maintenance of the living standard, other work as the income resource should be provided. • Timely inform all affected people of related qualified conditions, compensation ratio and standard, means of living and income restoration plans and the engineering schedule. • Before the affected people are satisfied, the land acquisition compensation and resettlement should not be carried out. • Provide possible maximum compensation and help for all affected people according to the feasible investment plan of the project. • Principles of demolition and resettlement of houses and compensation • The demolition of houses should follow the principle of “proper resettlement, reasonable compensation and demolition after compensation”. • The forms of resettlement of the houses are chosen by the affected people after negotiation by both sides with consideration of the affected people’s will and the funds and housing conditions of the demolition agency. Different forms to be chosen are: monetary resettlement, house resettlement (material resettlement), exchange of residential plot + compensation for loss of demolished structures. • Under the condition that the affected people are willing to rebuild houses by their own within the same village, accept the form of “land exchange” and cash compensation for loss of demolished structures, the demolition agency can provide preferential building materials for them based on the implementation of the plan. • The project encourages exchange of homestead+compensation for loss of demolished structures.

• 2.2 Identification of Affected People

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• All the affected people will be given compensation or restoration according to the loss categories and amount before thr dateline of FMG approval in the scope of the final construction surey. And the loss of the temporary affection will be compensated during the construction. • The dateline by the FMG approval is the final dated compensated. After the datline, all loss of the land, houses of the Aps in the scope of the project can’t be compensated

• 2.2.1 The compensation for the acquired land will be paid according to the original use of the acquired land • The compensation rates for farmland acquisition include land compensation fee, resettlement subsidy, and compensation fee for loss of standing crops. • The land compensation fee for farmland acquisition is 10 times the average yield of the farmland in three previous years before the acquisition. • The resettlement subsidy of every agricultural population that needs to be resettled is 4-6 times the average yield of the farmland in three previous years before the acquisition. • As to the Affected Tentant or labors, ensure that will provide a same farm tenancy contract. The tenancy period is equal to the remain limit time.

2.2.2 Residential land, Houses and Buildings All acquired residential land, demolished buildings and structures, no matter legal or illegal, will be all compensated directly to the affected people. As for the loss of residential land, the principle of “Replacing with another residential plot with equivalent size and quality” will be abided by and the replaced residential plot will be allocated within the affected villages or towns. As for the losses of houses and buildings, cash compensation will be provided to the affected people at replacement cost (including materials and labor cost). As to the affected Lessee, a lease contract equal to the original one will be provided to him as possible as the house-owner can. As for the affected people who temporarily lease the houses (or floating population),

163 Handbook of Resettlement Plan the removal notice should be given to them 3 months before the house demolition, and measures should be taken to assist them to find shelters in other places. For those lessees whose lease has not expired, they should enjoy the right to continue the lease or acquire corresponding compensation.

2.2.3 Standing Crops No matter they are legal or illegal, loss of standing crops are all compensated on the same basis. The compensation rates for loss of standing scrops is 1 times the average yield of the farmland in three previous years before the acquisition.

2.2.4 Compensation and Subsidy for Business Losses of Shops For the affected shops which have to stop business as a result of the construction of the project, the losses suffered during the business suspension will be compensated in accordance with the corresponding standards: Cash compensation for the demolished structures will be given to the affected shops. During the period of business suspenstion, the demolition agency should give compensation to the employees in the payment roll of the affected shops and stores in accordance with the lowest salary standard and social insurance premium of Fuzhou Municipality and price allowance regulated by the State. 2.2.5 Land Resettlement Subsidy Permanence Land Affected People will get the resettlement subsidy. The resettlement subsidy of every agricultural population that needs to be resettled is 6 times the average yield of the farmland in three previous years before the acquisition. After this project is completed, the maintenance and management of inland rivers will provide 90 long-term inland river inspection working post. The Cangshan District lab service department will recommend the jobs to the Aps. The Government will try their best to provide the good conditions to the Aps to get the new jobs for the new district and the construction.

2.2.6 Subsidy in Resettlement All of House Affected people will get following subsidy in its house resettlement.

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• Cash assistance for moving and transporting household effects: 6 RMB Yuan/m2 • Compensation for losses due to delay of work: 200 RMB Y/household • Compensation for losses incurred as a result of moving: 100 RMB Y/household • Subsistence allowance during the transitional period: 5 RMB Yuan/m2/month

2.3 Calculation of the Compensation Ratio Based on comments and inquiries solicited on a large scale beforehand, the owner of the inland rivers rehabilitation project (Fuzhou Municipal Urban Management Law Enforcement Bureau/ Fuzhou Urban Visual Constructing Development Company) invited grassroots organizations of the towns and villages and representatives of the affected people within the project area to participate the consultation meeting to work out the compensation standards for land acquisition and resettlement, and losses of houses, attachments of the land and standing crops (Summary of the meeting minute is presented in the appendix).

2.3.1 Land Acquisition Compensation Rates According to the national and local land management laws and regulations, the total of land compensation rates, resettlement subsidy and compensation for loss of standing crops is 17 times the average yield of the land in three previous years (Note: the related compensation rates are all calculated by the highest times). Compensation Times and Unit-price of Land Acquisition

Unit-price of Compensation Times Compensation Yield Unit-price Land Type (RMB Y/mu) (kg/mu) (RMB Y/kg) Land Resettlement Standing

compensation subsidy crops

Farmland 2,400 1.84 10 6 1 75,072 Fish pond 1,670 3.1 10 6 1 88,009 Garden 3,200 1.4 10 6 1 76,160 Forest land 40,400

2.3.2 Houses, structures and auxiliary facilities

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All houses will be compensated by the resettlement rates. For this project, the decoration cost is included in the compensation rates, while costs of electricity meters, water meters, telephones, cable TV, and removal and transportation costs are not included in the compensation rates. Compensation Standard of Demolition of Houses Simple Frame Brick/wood Wood Brick/concrete Earth/wood Structure (RMB (RMB (RMB (RMB Y/m2) (RMB Y/m2) (RMB Y/m2) Y/m2) Y/m2) Y/m2) 950 740 690 560 490 590 Telephone Electricity Cable TV Water Meter (RMB Meter (RMB Y/line) Y/line) 450 70 216 160 Remarks: The actual compensation standard for demolished house will be adjusted 15% up and down of the above standard according to the level and specification of decoration of the house.

Compensation Standard of Auxiliary Facilities Terrace Well Enclosing Iron Door Pigsty Ground (RMB (RMB Wall (RMB (RMB Pond (capita) Mass (RMB Y/m2) Y/capita) (RMB Y/m) Y/capita) Y//m2) Y/m) 40 400 60 100 45 100 15 Ordinary Fruit tree Fruit tree Big Banyan Iron Tower Boiler Sago Cycas Tree with fruits without fruits Tree (RMB (RMB (RMB (RMB (RMB (RMB (RMB Y/capita) Y/capita) Y/capita) Y/capita) Y/capita) Y/capita) Y/capita) 300 500 50 80 100 80 100 Cooling Temple Fence Temporary Transformer Water Pump Swimming

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Tower (RMB (RMB Y/m) Storage (RMB (RMB Pool (RMB Y/capita) House Y/capita) Y/capita) (RMB Y/capita) (RMB Y/capita) Y/m2) 300 400 15 150 500 300 300

2.3.3 Public infrastructures Relocation Cost Standard of Infrastructures High-voltage Low-voltage Transformer Telecommunication electrical pole electrical pole Note (capita) pole (capita) (capita) (capita) 20,000 RMB 10,000 RMB 200,000 RMB 2,500 RMB Yuan Yuan Yuan Yuan

2.3.4 Other Charges or Compensation

Fee for using land for constructional purpose 26,700Y/mu

Tax for occupation of cultivated land 5,333 Y/mu

Fee for renovation of vegetable plot 35,000 Y/mu

Fee for renovation of fish pond 25,000 Y/mu

Fee for the administration of provincial-level roads 1,000 Y/mu

Fee for reclamation of cultivated land 8,000 Y/mu

Subsidy for Vulnerable Group 2000 Y/Householder

2.3.5Entitlement matrix

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Entitlement Matrix of APs Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues Permanent land loss Permanent loss of The affected village (groups) will entitle to land z Cash compensation for loss of standing crops at (661 households or agricultural land, compensation fund. market prices. The compensation rates for crops 3,583 persons) non-agricultural land shall be around Y4,416 per mu for cultivated and crops. 1,106.8 mu The affected 661 households and 3,583 persons will land , Y5,177 for fish pond, Y4,480 for fruit (73.79 ha) of land in receive cash compensation for loss of standing crops. garden. If no farmland could be re-allocated by affected total for the Project z If no farmland could be allocated, the AP will be village groups, the affected persons will receive cash provided with resettlement subsidy and part of compensation of resettlement subsidy and part of land compensation fund to be used for income generation land compensation (no less than 80 percent) for and restoration of income and livelihood, income generation. z The local district and township governments will provide assistance to AP to be employed in local enterprises. z The project owner will give AP priority to be employed in maintaining and cleaning the completed inland rivers, including technical training prior to employment.

Permanently affected With structures built Owner Cash compensation or replacement house z The provision of replacement housing of z Assistance provided private house (1,104 thereon. 191,081 m2 will be provided to the APs. equivalent size, at a location satisfactory to to APs for house households or 4,858 private houses in total the AP. purchase and persons, including All users with or without legal house z Cash compensation for affected structures at full exchange of house 339 urban households certificate papers including AP settled on replacement cost of materials, equipment and certificate or 1,182 urban the land after 29/08/98 (Land Law) as labor with no deduction for depreciation or z Assistance 2 population and 765 long as they are included in the final AP salvageable materials. The rates per m shall be provisions to APs rural households or list or are able to prove their occupation of RMB 950 for multi-story structure per squire during resettlement 3,676 rural affected plots and structures before the meter, RMB 740 for brick & concrete, RMB 690 process population; 643 cut-off date. The cut-off date will be for brick & wood, RMB 560 for mud & wood, households with determined by the Fuzhou municipal RMB 590 for wood, and RMB 490 for simple z APs with certificate of house government. structure. non-certified and 461 households z Provision of homestead plus cash compensation houses will need to for demolished structures to the APs at without certificate of The house owners without house pay administrative certificate will be treated as the same as replacement value. house. Among those fees to certify new the legal owners • If the APs do not agree compensation rates, they living in these houses, house could select a qualified real estate appraisal 1,037 households are agency to appraise their properties. The final house owner and 67 compensation rates will be based on appraised household are tenants. rates. • If the residential land and/or structure is only partially affected by the Project and the remaining residential land is not sufficient to

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Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues rebuild the residential structure lost, then at the informed request of the AP the entire residential land and structure will be acquired at full replacement cost, without deduction for depreciation or salvageable materials. • The threshold of insufficient remaining residential land is to be determined based on consultation with AP.

Tenant All of the tenants will be guaranteed of a z Cash allowances will be provided to APs to z Assistance will be rental contract equal to the remaining of cover transfer and transportation costs provided to APs to their previous contract. Contract terms seek other house to will be equivalent to those of the old live contract.

All of the APs will be compensated on the same basis, irrespective of title and tenure rights, including “floating population”.

Other private Household facilities: Cash compensation will be paid to the APs z Cash compensation for affected property at properties 1,104 electric meters, replacement cost. 552 water meters, 880 z Compensation to move the facility, OR telephones, and 950 z Repair of facility by contractor to original or cable TVs better condition. z Compensation rates of household facilities: 450 Auxiliaries: 38,500 m2 electric meters, 70 water meters, 216 telephones, terrace, 4 wells, 12,551 and 160 cable TVs m fence wall, 535 iron z Cash compensation for auxiliaries: RMB 40/m2 door, 7,937 m2 pig pen, for terrace, RMB 400 for wells, RMB 60/m for 102 water pool, 10 fence wall, RMB 100 for iron door, RMB 45/m2 temple, 69 water pump, for pig pen, RMB 100 for water pool, RMB 400 186 tree D>10 cm, for temple, RMB 300 for water pump, RMB 60 4,153 trees with fruit, for tree D>10 cm, RMB 100 for trees with fruit, and 2,874 trees without and RMB 80 for trees without fruits fruits

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Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues Permanently affected With structures built Cash compensation will be paid to the affected z The provision of replacement building land of Public Buildings thereon. 10,020 m2 of collectives equivalent size, at a satisfactory to the affected community house in collective. AND total (including 665 m2 z Cash compensation for the loss of structure at hospital/clinics, 540 m2 full replacement value will of materials, school, and 8,815 m2 equipments and labors with no deduction for village office & public depreciation or salvageable materials. The rate activity buildings) shall be RMB 300 per m2 Permanently affected With structures built Owner Cash Compensation or replacement z The provision of replacement business land of enterprise/commercial thereon. 34,271 sq m in enterprise/commercial house will be equivalent size, at a location satisfactory to house (75 enterprises total, including 33,636 provided to the APs. the AP. and 7 shops, m2 enterprises z Cash compensation for affected structures at including 5 state buildings and 635 m2 All users with or without legal house full replacement cost of materials and labour enterprises and 68 shops. certificate papers including AP settled with no deduction for depreciation or private and 2 others, on the land after 29/08/98 (Land Law) salvageable materials. The rates shall be and 7 private shops) 2,771 employees will as long as they are included in the final RMB 850 for multi-story structure per squire be affected AP list or are able to prove their meter, RMB 640 for brick & concrete, RMB occupation of affected plots and 590 for brick & wood, RMB 460 for mud & structures before the cut-off date. The wood, RMB 490 for wood, and RMB 390 for cut-off date will be determined by simple structure. Fuzhou municipal government. z If the business land and/or structure is only partially affected by the Project and the partial demolition will not affect the whole house structure, the house will not be demolished to avoid the loss of good enterprise/business location, and loss of production/business stoppage z The threshold of insufficient remaining enterprise/ business land and structure is to be determined based on consultation with AP. AND z Rehabilitation assistance z Cash compensation will be paid to the business owners for the profit losses for each month of production stoppage z Cash compensation paid for relocation allowance of enterprises and shops at RMB 10-20 per square meter z Cash compensation will be paid for the transportation and transfer allowance. AND z Bonus at RMB 1,000 per employee will be provided to business owners to re-employ original employees

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Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues z Employees All of the permanent and contract z 3 person-month salary loss will be provided to employees will be compensated in cash the affected employees for the loss of salary. z The affected workers will be re-employed in the same shops/stores after the business is restored. AND z Training will be provided by the IA if workers cannot be re-employed in the same business. Measures for income Loss of 1,024 mu of The affected 661 households and 3583 persons will z Cash compensation for loss of standing crops at restoration farmland for the receive cash compensation for loss of standing crops. market prices. The compensation rates for crops rehabilitation of 13 If no farmland could be re-allocated by affected shall be around Y4,416 per mu for cultivated inland rivers, which village groups, the affected persons will receive cash land , Y5,177 for fish pond, Y4,480 for fruit include 338 mu paddy, compensation of resettlement subsidy and part of land garden. 465 mu fish pond, 221 compensation fund to be used for income generation z If no farmland could be allocated, the AP will be mu fruit gardens. A and restoration of income and livelihood, provided with resettlement subsidy and part of total of 661 households land compensation (no less than 80 percent) for and 3,583 persons and income generation. 32 villages will be affected. z The local district and township governments will provide assistance to AP to be employed in local enterprises. z The project owner will give AP priority to be employed in maintaining and cleaning inland rivers, including technical training prior to employment.

Materials, transfer and Relocating AP All relocating AP will be entitled to cash assistance to transportation transport household effects, salvaged and transport allowance new building materials to Resettlement Sites. The assistance rate shall be RMB500 per household for relocation allowance, RMB200 per household for subsidy of lost working days, RMB100 per household for transfer loss, RMB200 per household for medical allowance, plus RMB50 per person month for transitional allowance

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Type of Losses Level of Impact Entitled Persons Compensation Policy and Standards Implementation Issues Special allowance for Affected vulnerable population (the very poor, They will be provided with: households receiving minority, elderly disabled, receiving social assistance, z special assistance and attention, such as resettlement social assistance and/or or female-headed households) assistance fund at RMB 2,000 per household, households. In total 13 • the provision of government economy rental poor households have house if needed, and been identified. • For those vulnerable families whose livelihood will be affected seriously, they will get special training allowance, in particular women. The allowance is RMB 300 per person. Grievance Property indexes, APs who involved in making appeal and grievance for The affected people will be exempted from various compensation the settlement of land acquisition and resettlement kinds of fees involved in making complaints and standards, issues claims for land acquisition and resettlement issues compensation payment, resettlement and rehabilitation measures

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3. Resettlement Plan

3.1 Investigation Group of the Inventory of Affected Factors of Land Acquisition and Resettlement The major staff of the investigation group of the inventory of affected factors of land acquisition and resettlement are from Fuzhou Municipal Resettlement Engineering Company. It consists of representatives from Fuzhou Municipal Government, Fuzhou Municipal Management Enforcement Bureau, the People’s Government of Cangshan District, the people’s governments of towns, Fuzhou Urban Vusial Construction and Development Company, villagers’ committees and the affected villagers.

3.2 Major Contents of Methods of Investigation of Affected Entity House: During the investigation, houses with property rights and houses without property rights should be counted separately. According to the related regulations of Fuzhou Municipal Government on house resettlement, the resettlement of houses is based on the land certificates and property right certificates. For the houses without property right certificates, the resettlement of houses is based on the measured land area and construction area of the houses. Auxiliary facilities: Auxiliary facilities and auxiliary domestic and production materials (such as fruit trees, ordinary trees, terrace, enclosing wall, iron doors, water pumps, and transformers, etc.) are calculated on the site by staff of the investigation group and the affected villagers. Land: According to the national laws, land is owned by the state or collectively-owned and presently the servitude of the land belongs to farmers. In this project, the land will be measured and registered by the staff of the investigation group of the inventory of affected factors of land acquisition and resettlement and the affected households. Enterprises: Further investigate and identify if there are removal cases. Investigate names and amounts of the affected enterprises, loss for demolition of entity and loss of production and operation. Same method for investigation of the houses of inhabitants is taken for investigation of the houses of enterprises.

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Public facilities: Offices of villages, water supply facilities, and transmission and communication facilities, etc. are primarily calculated on the site. Others: Investigation of other affected factors is carried out and identified by the above methods.

3.3 Resettlement Plan of this Project Nantai Island Inland River Rehabilitation Project involves 1104 resettled family totaling 4858 people. Based on the collected information and actual situation of the project, the resettlement plan has been initially prepared as follows: The survey result shows that for those households will be relocated that 50.8% of them would like to be compensated by cash, while 38.4% of them would like to be relocated with the provision of equivalent size and quality of house provided by the government, 1.6% newly built resettlement site by the government, 2% replacement homestead plus cash, and 8.8% not decided yet. Of the total surveyed households, 81% would like to be relocated in the village or areas of the same district, 8.5% no idea yet, 5% new residential site constructed by the government, 2.5% in central city, 2.5% neighbouring district/village, and 0.5% other district/village. During the process of resettlement implementation, the resettlement implementation agency will identify all the possible location and method of resettlement based on the preference of APs and relevant regulations of resettlement. The affected people will be provided with all the information so that they can make their choice before signing the resettlement agreement, and their requirement and expectation can be satisfied to the largest extent. In Fuzhou, according to Fuzhou City Urban Building Demolition Administration Method, the compensation for demolished houses will be based on replacement cost. There are three options for house compensation (two for urban households). The first one is cash option; the second one is in kind option; and the third one (only available for rural households) is to provide replacement housing plots plus compensation for lost houses. The cash compensation is to provide cash to affected households based on house compensation rate and affected house floor space.

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The project owner to provide replacement housing to the affected households. Following the Fuzhou City Urban Building Demolition Administration Method, the replacement housing option will be based on the same amount of affected floor space in the similar locations. The standard replacement housing units include 45, 60, 75, 90 and 105 square meters. For those households with more than 105 square meters, two separate apartments should be provided. In addition to basic house compensation, the affected people will be provided compensation for various affected facilities, which include Y450 for each electricity meter, Y70 for each water meter, Y216 for each telephone line, and Y160 for each cable TV. In terms of decoration compensation, they are included in the compensation rates.

During the relocation, various transfer assistances will be provided for each affected household. They include (1) moving allowance, (2) medical subsidy, (3) transfer assistance, and (4) compensation for lost working time. Based on Fuzhou city regulations, it is decided that moving allowance will be set at: Y500 per household; medical subsidy: Y200 per household; transfer losses: Y100 per household; lost work time: Y200 per household; and transfer subsidy: Y50 per person per month.

3.4 Resettlement and Compensation of Companies • During the process of demolition and relocation, compensation will also be provided to affected business owners to cover various losses, which include profit losses, wage loss, and cost of moving and transfer. • For the remaining enterprises with only minor impacts, they will be entitled to the same cash compensation based on affected structures and production stoppage. They could use compensation to restore affected structures and make necessary readjustment within their enterprises so that their basic production and business could be restored or improved. The project owner (FUVCDC) and local governments will provide them necessary assistance and support for their internal adjustment and rebuilding. • If the enterprises need to be removed completely, the local government should, integrated with the constructional and economic development planning of the town and combined with guiding products development and structure readjustment, make endeavors to assist

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to attract the old customers while exploring the new market and provide suitable preferential tax policies or make the exemption or reduction of the tax for them, especially during the removal period and in the initial year of production restoration. 3.5 Compensation and Restoration of Affected Public Facilities Based on the survey, some public facilities will be removed owing to land acquisition of this project. These public facilities should be restored by the resettlement implementing agency in the new communities.

3.6 Living Restoration Program 3.6.1 labor force To mitigate such impacts, a range of measures will be taken by the project owner. They include (1) provide the farm-lands for the lost land; (2) arrange non-farm employment opportunities for the affected farmers; and (3) provide other rehabilitation assistance during the process. The combination of these measures will ensure that affected households and persons will restore or improve their income to their previous levels.

3.6.2 Living Restoration Plan Based on the socioeconomic survey of affected towns and villages, their main source of income is industry. Township entrepreneurs have developed very well in the three affected towns, The development of other industries such as transportation 、 commerce and construction has a great potentiality. The pressure for employment is not a problem in Nantai Island and Chanshan District.Those farmers who lose their land because of land acquisition of this project are heavily affected people of this project. In order to ensure that their living standard will not become lower after the implementation of this project, in addition to compensation of seedling and labor force resettlement, working opportunity of inland river management and patrol and township entrepreneurs will be provided to some of the affected people. The government will make effort to provide employment opportunity to those affected people in the township entrepreneurs in Jinshan Investment Zone、Chenmen Investment Zone、Gaishan Investment Zone and Chanshan Industrial Zone. The government will encourage the people to create opportunity in the new community and the inland river rehabilitation project. The living restoration of the affected people can also be made by land

177 Handbook of Resettlement Plan adjustment and self-employment. The industrial companies in the towns and villages where the project is located will employ some of the local affected people. 3.6.3 Compensation of Seedling and Labor Force Resettlement The seedling compensation fee will be provided to those affected families who rely on land to make a living but lose their land. The labor force resettlement compensation fee will be paid to those affected families who lose their land based on a standard of RMB26496/mu (vegetable plot) and RMB 31062/mu (fishing pool) .The compensation of seedling and labor force resettlement and timely solution of the problem of peoples’ temporary income will restore the living of the affected people in a short time.

3.6.4 Employment Opportunity of Inland River Rehabilitation Project A large number of labors will be required in the course of the construction of the project. Those affected people will enjoy a priority to be employed. During the four years construction period after the commencement of the project, about 100 person*month will be required for the rehabilitation of 13 inland rivers of 46 km. Inland River Rehabilitation Project will provide hundreds of temporary working opportunity and those local affected people will enjoy a priority. After this project is completed, the maintenance and management of inland rivers will provide 90 long-term inland river inspection working post. Planting trees and maintenance of trees and flowers will provide working post of 180 based on one person/250 m. The inspection、rehabilitation and management of the river course after the completion of the project will also provide some working opportunities. Those affected people can apply to relevant authority for a priority in employment.

3.6.5 Land Reallocation by local Government (Towns and Villages) and Development of New Agricultural Products: The local government will reallocate the land in the village to deal with the problem of cultivated land decrease as a result of this project. In the same time the local government will make a land utilization optimization program based on the general program and upgrade the

178 Handbook of Resettlement Plan cultivation level of affected people and villages. New agricultural technology and high quality seed and high-yield product can be introduced into the villages and technical staff can be sent to help the affected people restore their production. After consultation with the inland river project owner and relevant department, after the project is completed, some section of the river can be designated for high-yield cultivation and biological cultivation such as high-yield duck cultivation with the precondition that no interference should be made to the channel (if there is any). Contract can be signed with some of the affected people to assist them to restore their income.

3.6.6 Government of Chanshan District and Chanshan Town Based on the socioeconomic survey, Chanshan Town will provide 885 working opportunity to the affected people who lose their farmland in the town, the affected villages will provide jobs to the agricultural working post of 795 person, industrial working posts of 565 person and service industriy of 253 person, totaling 1613 person. In the meeting held with government of Chanshan district、Labor Bureau and related department in the course of the survey, the government of Chanshan district has announced that 885 working post can be provided by Labor Bureau and 90 working posts can be provided by Inland River Management Office. The support of the government is a great promotion to this project. This government has paid much attention on the resettlement of the affected people and the construction of this project. The government policy and commitment should be further implemented.

3.6.7 Supporting Measures for the Vulnerable Group The VG household whose living existence is seriously affected by land acquisition and house demolition will be given the special subsidy for training to help them obtain more job opportunities, particularly for female family members. For the affected households which suffer from the loss of living existence, especially the family with old people, lonely or widowed female members, the government will give them the living allowance according to the lowest living security standard of Fuzhou Municipality, 80RMB yuan/person.month to several persons/household and 100RMB yuan/person.month to

179 Handbook of Resettlement Plan one persons/household. In addition, the lump-sum subsidy will be given to these VG households in house demolition and resettlement. The affected people who seek jobs by themselves can apply for a small amount of loan with the guarantee company established by the government to provide the guarantee. The affected households with difficulties can apply for leasing the Economic Leasing Apartments arranged by the government, or apply to Fuzhou Housing Guarantee Agency for guarantee for house-purchasing loan.

4. Procedure of Complaints and Claims 4.1 Mechanism of Complaints and Claims Chinese government protect citizen’s legal right and interests and the specific terms can be found in the constitution and civil law of People’s Republic of China. The complaint and claim mechanism includes People’s Court and Procuratorate of different level and Reception office in each level of government organizations which handles peoples’ complaints and claims. If the affected people are unsatisfied with the way they have been treated, they can seek a solution of their problems through some procedure including appealing to law.

4.2 Channels and Procedure of Complaints and Claims (1) A Land Acquisition and House Demolition Committee is set up in every administrative village with the chief of the village as the person in charge of the committee. The members are made up of members of Villagers’ Committee and representatives of the affected villagers. The affected people can lodge complaint and claim at any time to this Committee or the agency at higher authority if they have any opinions or suggestions on compensation for land acquisition and house demolition. (2) There is a Reception Office in the Government at various levels which can accept the general complaints and claims of the affected people. (3) According to the law, the People’s Congress, Political Consultative Committee at various levels are entitled to supervise and monitor if the affected people have been appropriately compensated and arranged by the relevant departments. They also have the

180 Handbook of Resettlement Plan right to accept the complaints and claims of the APs. (4) The administrative supervisory, auditing, discipline inspecting and law enforcement departments are entitled to accept and handle the illegal activities during the process of land acquisition and house demolition. (5) If the affected people are unsatisfied with the replies of the above agencies and departments, they are entitled to appeal to People’s Court at various levels through legal channels.

MUNICIPAL LEGAL JURIDICAL FUZHOU DEVELOPMENT AND

DEPT REFORM COMMISSION

MUNICIPAL DISCIPLINE CITY RESETTLEMENT OFFICE

COMMITTEE

CITY APPEAL OFFICE DISTRICT RESETTLEMENT INDEPENDENT M&E OFFICE MONITOR

VILLAGE COMMITTEE APS GROUP

AFFECTED HOUSEHOLD

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Appendix 6. Terms of Reference for External Monitoring

A. Introduction

According to the requirements stipulated in the “Regulations on Construction Supervision” promulgated by the Ministry of Construction of the People’s Republic of China (PRC) in 1995, all construction projects shall be properly supervised. It is also a requirement of the Asian Development Bank (ADB) that loan projects that result in resettlement be properly monitored and evaluated. In order for the implementation of the land acquisition and resettlement program of the Fuzhou environmental Improvement Project (FEIP) to comply with the provisions of the Resettlement Plan (RP), monitoring of implementation, both “internal” and “external”, will be carried out during and after the implementation of the Project.

An independent monitoring agency (Monitor) will be engaged through competitive tenders for the external supervision, monitoring and evaluation. The Consultant will be a PRC consulting entity who has experience in ADB or World Bank projects dealing with resettlement issues. In addition, an international resettlement specialist(s) will be engaged to advise and assist with the monitoring and evaluation activities.

Monitoring and evaluation will include, but not be limited to:

z Monitoring the progress and effectiveness of RP implementation; z Evaluation of income restoration and post-resettlement conditions of the APs and host communities.

B. Objectives and Requirements of Monitoring and Evaluation

The objectives of monitoring and evaluation are to assess if the land acquisition and resettlemnet is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

z Economic situation prior to and after displacement of land or housing; z Timely disbursement of funds; z Environmental conditions; z Social adaptability after resettlement; z Rehabilitation of the vulnerable groups; z Condition and quality of land temporarily acquired when it is returned to the original land users; z Measures taken by the village committees to restore affected livelihoods; and, z Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project areas.

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Monitoring and evaluation will include the establishment of socio-economic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwords. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IAs, local officials, village leaders, and survey of 15-20% pf affected households. Focus group discussions can be conducted to address issues related to women, poor, other vulnerable groups and unemployed workers.

C. Monitoring Indicators

The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

z Disbursement of entitlements to APs and enterprises/businesses: compensation, housing, cultivated farmland, and employment as specified in the RP. z Development of economic productivity: re-allocation of cultivated land, land restoration, job opportunities available to APs, number of APs employed or unemployed. z Provision of alternative housing: the affected persons must move into their alternative housing at least one month before the relocation; for those opting for self-construction, payment of compensation and provision of housing sites should be completed at least three months before the relocation; the compensation for construction of houses should be equivalent to the replacement cost; the affected persons must receive on time their entitlements regarding moving allowance and transportation allowance. z Restoration of civic infrastructure: all necessary infrastructure should be restored at the resettlement sites at least up to a standard equal to the standard at the original location; the compensation for all infrastructure should be sufficient to reconstruct it to the same quality z Level of satisfaction of APs: level of satisfaction of APs with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored. z Standard of living: Throughout the implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socio-economic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation. z Reemployment of affected staff and workers, and compensation of lost wages. z Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution,

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implementation of preferential policies, income restoration measures, and improvements in women’s status.

D. Special Considerations

Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

z The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluating unit will also provide recommendations and assistance to the EA in respect of women’s issues. z Care and attention to vulnerable groups: Closely monitor living conditions of elders, the handicapped, and other vulnerable groups after resettlement, to ensure that no hardship is experienced. z Monitoring and evaluating will provide information on utilization and adequacy of resettlement funds. The Fuzhou Finance Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

E. Contents and Distribution of Independent Monitoring Reports

A monitoring report will include, among other things:

z conclusion of investigation and evaluation; z major existing and potential problems; z recommended mitigation or prevention measures which will be incorporated into a revised plan if necessary; z assessment of previous follow-up actions.

The Monitor will provide the IAs, Fuzhou House Demolishment Engineering Office, Resettlement Leading Group (RLG), and respective resettlement implementation offices with monitoring reports every six months from the start of the implementation of LAR and annual evaluation reports until the Project is completed, or until all resettlement issues have been successfully resolved.

All reports will be available in English and Chinese. IAs shall ensure that information on the progress and status on all aspects of land acquisition and resettlement activities will be provided to the external monitor for verifying the progress reports. The Fuzhou Project Management Office (FPMO) will forward copies of the reports in English to the Asian Development Bank. FPMO will also submit a resettlement completion report to the ADB, to be followed by post-resettlement impact evaluation reports by the monitor, which should provide further evidence whether adverse effects of the Project have been mitigated adequately, and at least non-affected household income levels have been restored for the APs.

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F. Duration and Frequency of Visits

The consulting services will be required during a period of 5 years.

During implementation of the RAP, external monitoring by the Monitor will be undertaken every six (6) months for an input of one (1) month.

G. Monitoring Schedule

Schedule Timing Report Submission to ADB 1) Baseline Survey Mar. 2005 April 30, 2005 2) Monitoring of Implementation Apr. 2005 June 30, 2005 3) Monitoring of Implementation Oct. 2005 Dec. 15, 2005 4) Monitoring of Implementation Apr. 2006 June 30, 2006 5) Monitoring of Implementation Oct. 2006 Dec. 15, 2006 6) Monitoring of Implementation Oct. 2007 June 30, 2006 7) Monitoring of Implementation Oct. 2007 Dec. 15, 2007 8) Monitoring of Evaluation Jul. 2008 Sept. 30, 2008 9) Monitoring of Evaluation Jul. 2009 Sept. 30, 2009

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