Resettlement______Monitoring Report

Project Number: 42383 August 2013

PRC: Small Cities and Towns Development Demonstration Sector Project

Prepared by National Research Center for Resettlement, Hohai University City, Jiangsu Province, PRC

For Shanxi Project Management Office

This report has been submitted to ADB by the Shanxi Provincial Government Project Management Office and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB. Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Independent Resettlement Monitoring and Evaluation Report for Shanxi Small Cities and Towns Development Demonstration Sector Project (&Xinghuacun&Youyu Components) (No.4)

National Research Center for Resettlement Hohai University Nanjing, Jiangsu,

Aug. 2013 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Persons in Charge : Shi Guoqing

Independent Monitoring and Shi Guoqing, Hu Xin, Han Xiao, Wang Chen, : Evaluation Staff Liu Yiying, Yang Kun Shi Guoqing, Hu Xin, Han Xiao, Wang Chen, Report Writers : Liu Yiying, Yang Kun

Independent Monitoring and National Research Center of Resettlement, Hohai : Evaluation Institute University

National Research Center of Resettlement

Address : Hohai University Nanjing, Jiangsu, China

Post Code : 210098

Telephone : 025-83786503

Fax : 025-83718914

[email protected] Email : [email protected]

I Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

CONTENT PREFACE ...... 1 1 Summary ...... 2 1.1 Introduction of Project ...... 2 1.2 Resettlement Policy Framework ...... 3 1.3 Monitoring and Evaluation...... 4 1.3.1 Monitoring and Evaluation Mechanism ...... 4 1.3.2 Procedure of Monitoring and Evaluation ...... 5 1.3.3 Contents of Monitoring and Evaluation ...... 5 1.3.4 Method of Monitoring and Evaluation ...... 6 1.3.5 Schedule of Monitoring and Evaluation Report ...... 6 1.4 Schedule ...... 7 1.4.1 Project Schedule ...... 7 1.4.2 Resettlement Schedule ...... 7 1.5 The Progress of Land Acquisition ...... 8 1.5.1 Land Acquisition Procedure ...... 8 1.5.2 LA Schedule ...... 8 1.5.3 Standards of LA Compensation and Implementation ...... 9 1.6 Income and cost of Aps ...... 10 1.7 Situation of Compensation and Resettlement for Housing Demolition ...... 11 1.7.1 The Basis of Compensation and Resettlement for Housing Demolition ...... 11 1.7.2 The Progress of Compensation and Resettlement for Housing Demolition .... 11 1.7.3 The Standard and Implementation of Compensation and Resettlement for Housing Demolition ...... 12 1.8 Implementation Institution ...... 13 1.8.1 Ability of Implementation Institution ...... 14 1.8.2 Internal Monitoring and Evaluation ...... 14 1.8.3 Evaluation ...... 15 1.9 Conclusion and Suggestion for Monitoring and Evaluation ...... 15 1.9.1 Conclusion...... 15 1.9.2 Suggestion ...... 15 2 Pingyao Huji River Treatment Project ...... 17 2.1 Project Background ...... 17 2.1.1 Review of Resettlement Plan ...... 17 2.1.2 Resettlement Implementation ...... 18 2.1.3 Monitoring Content ...... 19 2.2 Resettlement of APs ...... 19 2.2.1 Project Impact ...... 19 2.2.2 Compensation Standards and the Implementation ...... 20 2.2.3 The Standard and Implementation of Compensation and Resettlement for Housing Demolition ...... 21 2.3 Resettlement Implementation Institution and Its Capacity ...... 24 2.3.1 Resettlement Implementation Institution ...... 24

II Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

2.3.2 Institute Capacity ...... 25 2.4 Typical Investigation of Affected Villages ...... 25 2.5 Investigation and Analysis of APs' Productive and Living Standard ...... 26 2.5.1 Household Population ...... 26 2.5.2 The Production and Operation Situation ...... 28 2.5.3 Main Properties of households ...... 28 2.5.4 Housing Built-up Area and Living Conditions ...... 29 2.5.5 Household Yearly Income ...... 30 2.5.6 Household Yearly Cost ...... 31 2.5.7 Comparative Analysis between Annual Household Income and costs ...... 34 2.5.8 Analysis of Changes in Net income ...... 34 2.6 Vulnerable Groups ...... 35 2.7 Public Participation ...... 36 2.8 Grievance and Appeal ...... 37 2.9 Conclusions and Suggestions ...... 37 2.9.1 Conclusions ...... 37 2.9.2 Suggestions ...... 37 3 Xinghuacun Town Regional Road Network Renovation Sector Project ...... 39 3.1 Project Background ...... 39 3.1.1 Review of Resettlement Plan ...... 39 3.1.2 Project Procedure and Resettlement Implementation ...... 39 3.1.3 Monitoring Content ...... 40 3.2 Resettlement Implementation ...... 41 3.2.1 Project Impact ...... 41 3.2.2 Standards and the Implementation for Land Acquisition Compensation ...... 41 3.2.3 Standards and the Implementation for Housing Demolition ...... 41 3.3 Resettlement Implementation Institution and Its Capacity ...... 42 3.3.1 Resettlement Implementation Institution ...... 42 3.3.2 Institute Capacity ...... 43 3.4 Typical Investigation of Affected Villages ...... 43 3.5 Investigation and Analysis of APs' Productive and Living Standard ...... 44 3.5.1 Household Population ...... 44 3.5.2 The Production and Operation Situation ...... 49 3.5.3 Main Properties of households ...... 49 3.5.4 Housing Built-up Area and Living Conditions ...... 50 3.5.5 Household Yearly Income ...... 51 3.5.6 Household Yearly Cost ...... 52 3.5.7 Comparative Analysis between Annual Household Income and costs ...... 54 3.5.8 Analysis of Changes in Net income ...... 54 3.6 Vulnerable Groups ...... 56 3.7 Public Participation ...... 56 3.8 Grievance and Appeal ...... 57 3.9 Conclusions and Suggestions ...... 57 3.9.1 Conclusions ...... 57

III Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

3.9.2 Suggestions ...... 58 4 Project ...... 59 4.1 Project Background ...... 59 4.1.1 Review of Resettlement Plan ...... 59 4.1.2 Project Progress and Resettlement Implementation ...... 60 4.1.3 Monitoring Content ...... 61 4.2 Resettlement Implementation ...... 61 4.2.1 Project Impact ...... 61 4.2.2 LA Compensation Standards and the Implementation ...... 61 4.3 Resettlement Implementation Institution and Its Capacity ...... 61 4.3.1 Resettlement Implementation Institution ...... 61 4.3.2 Institute Capacity ...... 62 4.4 Typical Investigation ...... 62 4.5 Investigation and Analysis of APs' Productive and Living Standard ...... 63 4.5.1 Household Population ...... 63 4.5.2 The Production and Operation Situation ...... 64 4.5.3 Main Properties of households ...... 64 4.5.4 Housing Built-up Area and Living Conditions ...... 65 4.5.5 Household Yearly Income ...... 65 4.5.6 Household Yearly Cost ...... 66 4.5.7 Comparative Analysis between Annual Household Income, and costs ...... 69 4.5.8 Analysis of Changes in Net income ...... 70 4.6 Vulnerable Groups ...... 71 4.7 Public Participation ...... 71 4.8 Grievance and Appeal ...... 72 4.9 Conclusions and Suggestions ...... 72 4.9.1 Conclusions ...... 72 4.9.2 Suggestions ...... 72 5 Appendix ...... 74 5.1 Appendix 1: Land Acquisition Agreement of Pingyao Subproject ...... 74 5.2 Appendix 2: Relative Bidding Documents of Xinghuacun Subproject ...... 75 5.3 Appendix 2: Land Use Certificate of Youyu Subproject ...... 76

IV Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

TABLE CONTENT Table 1-1 Project Resettlement Impact ...... 3 Table 1-2 Monitoring and Evaluation Sample ...... 5 Table 1-3 Project Schedule ...... 7 Table 1-4 Resettlement Schedule ...... 8 Table 1-5 LA Schedule ...... 9 Table 1-6 Comparison of Compensation Standards ...... 10 Table 1-7 Income and cost of Sampled households ...... 10 Table 1-7 The Progress of Compensation and Resettlement for Housing Demolition ...... 12 Table 1-8 The Leading Team Member of Shanxi SCTDDSP Financed by ADB ...... 13 Table 1-9 Sub-Project Office Resettlement Staff of Shanxi STCDDSP ADB Financed Project ..... 14 Table 2-1Comparison between actual physical impact of resettlement and RP of Pingyao Subproject ...... 20 Table 2-2 Compensation Details of Affected HD Households ...... 23 Table 2-3 Main staff name list of executive agencies ...... 24 Table 2-4 Interview in typical village ...... 25 Table 2-5 Sample household Population Structure ...... 26 Table 2-6 List of Age Structure ...... 28 Table 2-7 List of Education ...... 28 Table 2-8 List of Main Properties ...... 28 Table 2-9 List of Housing Area ...... 29 Table 2-10 List of Living Condition ...... 29 Table 2-11 List of household Income Source ...... 30 Figure 2-3 Household Income Source ...... 30 Table 2-12 List of household Income Level ...... 30 Table 2-13 List of household Cost Structure ...... 31 Table 2-14 List of household Cost Level ...... 33 Table 2-15 Household Income and costs ...... 34 Table 2-16 The Change of Income Structure before and after Land Acquisition and Resettlement35 Table 2-17 Public participation ...... 36 Table 3-1 PMO Staff ...... 43 Table 3-2 Interview in typical village ...... 44 Table 3-3 Sample household Population Structure ...... 45 Table 3-4 List of Age Structure ...... 49 Table 3-5 List of Education ...... 49 Table 3-6 List of Main Properties ...... 49 Table 3-7 List of Housing Area ...... 50 Table 3-8 List of Living Condition ...... 50 Table 3-9 List of household Income Source ...... 51 Table 3-10 List of household Income Level ...... 51 Table 3-11 List of household Cost Structure ...... 52 Table 3-12 List of household Cost Level ...... 53 Table 3-13 Household Income and costs ...... 54

V Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 3-14 The Change of Income Structure before and after Land Acquisition and Resettlement55 Table 3-15 Support Measure for the Poor and Vulnerable people ...... 56 Table 3-16 Public participation ...... 57 Table 4-1 Youyu County Sub-project Resettlement Implementation Institution ...... 62 Table 4-2 Interview in affected village by Youyu heating Subproject ...... 62 Table 4-3 Sample household Population Structure ...... 63 Table 4-4 List of Age Structure ...... 64 Table 4-5 List of Education ...... 64 Table 4-6 List of Main Properties ...... 64 Table 4-7 List of Housing Area ...... 65 Table 4-8 List of Living Condition ...... 65 Table 4-9 List of household Income Source ...... 65 Table 4-10 List of household Income Level ...... 66 Table 4-11 Annual cost Structure ...... 67 Table 4-12 Household Costs ...... 69 Table 4-13 Household Income and Costs ...... 70 Table 4-14 The Change of Income Structure before and after Land Acquisition and Resettlement71

VI Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

FIGURE CONTENT Figure 2-1 Huiji river channel ...... 18 Figure 2-2 The Effect of Relocation Area and The Construction Site ...... 22 Figure 2-3 Household Income Source ...... 30 Figure 2-4 Household Income Distribution ...... 31 Figure 2-5 household Cost Structure ...... 32 Figure 2-6 Household Cost Distribution ...... 33 Figure 2-7 Income Structure before and after LA ...... 35 Figure 3-1 Latest Road Level Off Site of Road Network Transformation Project in Xinghuacun . 40 Figure 3-2 Construction Area of Resettlement Residential of Road Network Transformation Project in Xinghuacun ...... 42 Figure 3-3 Household Income Source ...... 51 Figure 3-4 household Cost Structure ...... 53 Figure 3-5 Income Structure before and after LA ...... 55 Figure 4-1 Youyu Integrated Heating Plant Site ...... 60 Figure 4-2 Boiler installation location of Youyu Integrated Heating Construction ...... 61 Figure 4-3 household Income Source ...... 66 Figure 4-4 Yearly Cost Structure ...... 67 Figure 4-5 The Change of Income Structure before and after Land Acquisition and Resettlement 71

VII Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

ABBREVIATIONS

ADB Asian Development Bank

RP Resettlement Plan

NRCR National Research Center for Resettlement

M&E Monitoring and evaluation

SCTDDSP Small Cities and Towns Development Demonstration Sector Project

SCTCP Small Cities and Towns Construction Project

AP Affected Person

HD House demolition

LA Land acquisition

PLA Permanent Land acquisition

TLA Temporary Land acquisition

PMO Project Management Office

VIII Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

PREFACE

Resettlement monitoring and evaluation, is according to the resettlement action plan, implementing continuously investigation, inspection, supervision and evaluation work to the resettlement activities.The function of the resettlement monitoring and evaluation is tracking and monitoring project resettlement action plan's implementation process, dynamic assessment resettlement action plan's suitability ,provide decision support for project owners, resettlement institutions and the Asian Development Bank (ADB) project management .Through continuous monitoring and evaluation of the monitoring results, determine whether the resettlement implementation activity is complying resettlement action plan or not , If not or imperfect, should be proposed remedial suggestions. National Research Center for Resettlement (NRCR) of Hohai University carries out the Independent Monitoring and Evaluation (IM&E) to invulnerable resettlement of the project. From 29th Jul. to 6th Aug. 2012, the investigate team carried out the third M&E investigation for Pingyao, Xinghuacun and Youyu Small Cities and Towns Development Demonstration Sector Project (SCTDDSP). This report contains Youyu project M&E report No.4 and Wutong project M&E report No.4.

1 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

1 Summary

1.1 Introduction of Project Shanxi Small Cities and Towns Development Demonstration Sector Project (SCTDDSP) financed by ADB is a comprehensive infrastructure construction projects. The project construction aim is to improve the affected small cities and towns‟ living conditions in Shanxi Province, increase employment, improve the small cities and towns‟ relative infrastructure and municipal services. The project involves 5 cities, 7 small towns of 7 counties, including 7 sub-projects, 3 core sub-projects and 4 subsequent sub-projects. Specific include: 3 core sub-projects: 1) ‟s Huiji river management projects (1 project construction contents: rivers bed is dredged, embankments are constructed, water storage reservoirs are built, rubber dams are installed); 2) city‟s Wutong SCTCP (5 project construction contents: a. Caoxi road and associated municipal services, b. heat supply, c. gas supply, d.wastewater treatment, e. education services facilities), 3) Youyu county‟s SCTCP (5 project construction contents: a. heat supply, b. water supply, c.drainage and wastewater collection, d. roads and associated municipal services, e. flood control); 4 subsequent sub-projects: 4) Lingshi country Jingsheng town‟s SCTCP loaned by ADB(2 project construction content: a. townships ancient architecture protection and maintenance, b. township road network construction, 5) Niangziguan town‟s small towns development demonstration construction projects (2 project construction contents: a. river management, b. linquan pedestrian street governance); 6) QingXuXian county water affir construction projects (2 project construction contents: a. water system engineering, b. landscape greening engineering); 7) Xinghuacun township road network reconstruction project (1 project construction content: township road network construction). The project total investment for 224.7 million dollars, apply for $100 million loan of ADB. The project will be completed before Dec. 31, 2015. In the 18 construction projects of 7 sub-projects, there are 14 construction projects involving the resettlement. According to each sub-project resettlement plan(RP), the main impacts of Shanxi SCTCP loaned by ADB on APs are induced by rural collective-owned land acquisition and rural house demolition. Land acquisition involves 991.11 mu; demolition of rural residential housing area involves 27888.74 m2. Direct and indirect influences involve 1872 households, and affected population is 7688. The project affects 42 enterprises and institutions, involving the demolition of 14360.82 m2 area. The impacts of RP are described in Table 1-1.

2 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 1-1Project Resettlement Impact1

No. Item Pingyao Wutong Youyu Xinghuacun Jingsheng Niangziguang Qingxu Total 1 Villages(number) 6 1 3 4 1 1 1 17 Permanent Land 2 868.92 85.68 494 266.68 143 84 30.99 1973.27 Acquisition(mu) Temporary 3 0 0 0 0 0 0 0 0 Land Use(mu) Affected 4 602 758 116 369 271 58 21 2195 Households 5 Affected Persons 2510 2118 454 1341 1113 186 61 7783 Demolition Affected 6 23 0 0 7 78 58 21 187 Families(household) Dismantlement 7 5682.35 0 0 895.39 10279 8049 3061 27966.74 Area(m2) Company Impact 8 24 0 0 1 13 0 4 42 (household) Affected Company‟ 9 13625 0 0 398.82 02 0 337 14360.82 Houses Area (m2) 1.2 Resettlement Policy Framework The resettlement policies that each sub-project follows were established according to the relevant resettlement policies of the People‟s Republic of China, Shanxi Province Government and ADB. The main laws and policies of each sub-project land acquisition follows are:  Land Administration Law of the People's Republic of China(PRC) (Jan 1,1999 implied,Aug 28,2004 revised)  No. 28 Decisions for Further Reform and Strengthen Land Administration of State Council ［Oct 28, 2004］  Regulations for the Implementation of the Land Administration Law of the People's Republic of China (Jan 1, 1991)  No.27 Provisional Regulations for Taxation on Occupation of Cultivated Land of the People's Republic of China (Api 1,1987 implied )  Regulations for the Protection of Capital Farmland (Jan 1, 1991 implied)  Public hearing procedures of Land Resources (May 1, 2004)  No. 238 Guidance to Improve the land and resettlement compensation system (Ministry of state Land Resources dated) (Nov 3, 2004)  Pre-construction project management (Ministry of Land Order No. 27) (Nov 1,

1 According to the latest Resettlement Plan, the data in the table ended in Jul. 2013. The RP of Qingxu project, Niangziguan project, and Jingsheng project have not been examined and approved by ADB. Specific reasons are as follows: Niangziguan project is divided into two sub-projects, Mianhe River Governance sub-project involves no resettlement, and has no resettlement plan, the project proposal of the second sub-project is still in the preparation progress, so the resettlement plan has yet submitted to ADB; Qingxu has wiped out the subproject (Qilianchi Governance), which involves resettlement, so no problems because of resettlement; due to the changes of project contents, Jingsheng project is also in the preparation progress, so the resettlement plan has yet submitted to ADB. 2 13 affected companies of Jingsheng project are individual business,the demolition area belong its residence houses.

3 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

2004)  Shanxi Province's Method on Implementing Land Administration Law of the PRC (Sep 26, 1999)  Notice on the Opinions of Compensation of Building Land in Shanxi (Document No.193 document of Shanxi Land Management Bureau,2007)  Shanxi Province's Methods on the Compensation Distribution of Collectively-owned Peasant's Land (Dec 1, 2005)  ADB resettlement booklet- practical guideline (1998)  ADB Safeguard Policy Statement (2009) According to above laws and policies the principle of each sub-project resettlement is:  Reduce negative influence to lowest level  If resettlement cannot be avoided please discuss with impacted villagers and villages to decide replacement cost and compensation level on the base of it.  Provide necessary compensation and help to the people impacted by project and to increase their income and living standard or restore at least to the level before project begins  The people impacted by project should get sufficient information about compensation agreement and compensation agreement should be made out after consulting with impacted people.  Special attention to the need of vulnerable groups 1.3 Monitoring and Evaluation In order to supervise the implementation of resettlement action and ensure resettlers keep at least same living level, NRCR of Hohai University that was entrusted by Shanxi project Management office financed by ADB on December 2010 carries out IM&E of the project. The institute of M&E should find existing or potential problems and give suggestions by checking land acquisition and resettlement pace, capital, management and life & production changing before and after resettlement. 1.3.1 Monitoring and Evaluation Mechanism NRCR of Hohai University carries out the Independent Monitoring and Evaluation to invulnerable resettlement of the project. According to the need of this time of monitoring to invulnerable resettlement of the project of Shanxi small cities and towns, National Research Center for Resettlement in Hohai University set up special “working group of the monitoring to invulnerable resettlement of the project of Shanxi small cities and towns” in December 2012, consisted by the scene investigation group, household interviews group, data processing analysis group, translation group, and other working groups, and establish the corresponding work rules and regulations, formulate the detailed work plan and a detailed work schedule. The working group is taken the responsibility Professor Guoqing Shi, the director of the National Research Center. Working group will take a full range of monitoring and evaluation aim at the effect of the resettlement plan implementation according to the related policies of the Asian Development Bank and the outline of Independent Resettlement Monitoring and Evaluation of the project of Shanxi small cities and towns.

4 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

1.3.2 Procedure of Monitoring and Evaluation  To write resettlement M&E outline  To know resettlement procedure  To check material Area, compensation standard and compensation capital appreciation of resettlement  Sampling investigation design  Baseline investigation  Comparative Analysis of Income  To build M&E information system  Investigation on the spot  To arrange and analyze materials  To write M&E report 1.3.3 Contents of Monitoring and Evaluation The M&E of each project is made according to the order of land acquisition and the relocation and income resort of impacted people will be followed. When the whole project finish post-evaluation will be done. According to investigation and resettlement plan, the impacts of this project are land acquisition, compensation to some attachment, house demolition, companies and shops were impacted by land acquisition. So, the contents of M&E are:  The schedule, area, compensation, capital appreciation and use of permanent land acquisition.  The area, compensation standard, capital appreciation of temporary land acquisition and land restore.  The schedule, area, compensation, capital appreciation of house resettlement  Restore of vulnerable group  Basic facility rebuilding  Resettler income and cost analysis  Satisfaction of Resettlers to land acquisition and compensation  Institution ability  Internal resettlement monitoring  Public participation and its effect  Registration and management of grievance and appeal  Implementation of other relevant resettlement (relocation of enterprises, institutions and shops) Table 1-2Monitoring and Evaluation Sample3

Affected Affected household Sample No. Project Sample Remark household on this monitor Proportion Wutong Collective 1 758 758 20 2.6% Project land 2 Youyu Project 116 6 6 100% Total 874 764 26 3.4%

3 Samples in the tables are based on this M&E. The quantities of samples are depending on specific impacts caused by each sub-projects.

5 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

1.3.4 Method of Monitoring and Evaluation From 28th Jul. 2013 to 6th Aug. 2013, this M&E took 9 days. The team of the M&E includes four professional personnel from NRCR and one to two workers from two Project Management Offices. They went to investigate four counties, which the four projects involved. During the M&E, following methods are used: Sampling investigation Design the sample scheme, Random sample is adopted, the samples accounted for 20 percent of the total affected households. The resettlement households chosen will be visited again in next M&E until their income have reached the former level. Symposium Have an informal discussion with resettlement offices, Dps, committees and women concerned respectively to know about land acquisition and housing relocation, and the income resort condition of villages. Individual questionnaire investigation Design the questionnaire for investigation. The M&E team goes intensely to Dps‟ homes and investigates on different kinds of Dps one by one according to the questionnaire. Referring to document data Looking up the document of resettlement activities, checking the compensation agreements of the land acquisition and house demolish and statistics data. Interviewing Key-men who provide information Such as directors of resettlement offices, township heads, village heads, householders, women (20%), the elderly, etc. 1.3.5 Schedule of Monitoring and Evaluation Report National Research Center for Resettlement (NRCR) of Hohai University carries out the Independent Monitoring and Evaluation (IM&E) to invulnerable resettlement of the project. In order to ensure the implementation of resettlement plan the monitoring and evaluation on the resettlement will make schedule according to project procedure. From 2011, NRCR wrote and submitted the IM&E Report to Shanxi Province ADB Project Office and ADB every half year. Since 2011, the NRCR will prepare a semi-annual M&E report, then prepare report each year in the late implementation of the project. Currently, the RPs for the subprojects of Pingyao, Xinghuacun and Youyu (the heating project) have been approval; therefore, this M&E will focus on this 3 subprojects. Besides, due to 1) land acquisition and resettlement of Wutong Subproject had been finished in 2008 and 2) land acquisition and resettlement of heating construction of Youyu subproject had been finished in 2009, the time interval is big, with related construcion is being finished (Youyu heating subproject had been finished in 2009; Wutong subproject is to be finished in Sep.2012). Therefore, external M&E (including livelihood investigation) is being taken once per year. Resettlement and land acquisition work of heating project in Youyu completed in 2009; because time interval is long, and the project engineering part also has entered the stage of finishing, resettlement external monitoring (including livelihood investigation) in Youyu subproject is one time per year. What's more, for Qingxu, Niangziguan,Jingsheng,and Youyu (the rest construction

6 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

other than the heating part), monitoring and evaluation unit, if relevant RP has got the approval, or the investigation of quantity of material objects starts, the M&E will follow up based on actual project situation. 1.4 Schedule 1.4.1 Project Schedule Up to this M&E, feasibility study reports, environmental assessment reports and preliminary design reports of all three subprojects have been completed. Known by investigation, Pingyao subentry project construction is divided into two blocks, Water Conservancy Construction Engineering Bureau in Shanxi Province won the bidding of 01 block, and the scope of governance are No.2 and No. Brake for steel dam, No.3 reservoir area, No.8 and No.9 shallow waters; China Railway 7th bureau group, Engineering Co., Ltd. won the bidding of 02 block, and the scope of governance are No.1 and No. Brake for steel dam, No.1 and No.2 reservoir area, No.1 to No.7 shallow waters, civil engineering began on 27th Feb. 2013 formally. Road network in Xinghuacun subproject is still in the process of bidding, the construction of three new roads involved are still at the stage of land leveling process. The preliminary design of heating project in Youyu subproject approved by the DRC in Shanxi Province on 3rd May 2011, approval document No. is JFGSJF[2011] No.543. In May 2009 get the approval of the land pre-trial reply from Land Resources Bureau in Shouzhuo City, and get land use certificate in 14th Aug. 2010 (the date get the certificate), boiler procurement bidding work of heating project is still on going, and is expected complete in the second half of 2013. 4 Table 1-3Project Schedule

Feasibility Preliminary Construction Final No. Item EIA Tender Construction Study Sketch Scheme(pic) Acceptance

1 Pingyao ●（2009.9） ●（2009.1） ●（2012.1） ●（2013.2） ●（2012.10） ▲ △

2 Xinghuacun ●（2009.9） ●（2009.4） ●（2011.7） ●（2013.2） ▲ ▲ △

3 Youyu ●（2008.12） ●（ 2008.12） ●（2011.5） ●（2011.6） ●（2011.6） ▲ △ 1.4.2 Resettlement Schedule Up to this M&E, RP of Pingyao subproject has been compiled with approval; material indexes has been measured and confirmed; Notice of HD has been publicized; house expropriation and compensation agreement and resettlement agreement have been signed, land expropriation has been completed; LA compensation has issued to affected village collective and farmers; housing demolition and compensation and resettlement work is under way, has not yet been completely ended. Resettlement progress of Xinghuacun subproject has no change in the monitoring compares to the previous period.RP of Xinghuacun subproject has been compiled with approval; material indexes has been measured and confirmed; Notice of HD has been publicized; Compensation contracts have been signed; LA has been finished; Compensation of land has been paid to households; HD and resettlement have not

4"●"refers to complete with approval;"○"refers to complete without approval；"▲"refers to in progress；"△"refers to not start.

7 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

been started yet. Youyu subproject, up to this M&E, compensation for LA of heating project has been issued to villagers. No housing demolition and resettlement problems involved. 5 Table 1-4Resettlement Schedule

Material Notice Compensation LA HD Item RP Index of LA and LA HD Contract Payment Resettlement Conformation HD Pingyao ●（2009.9） ●（2012.4） ●（2012.4） ●（2012.6） ●（2012.12） ▲ △ ●（2012.6） Xinghuacun ●（2009.2） ●（2011.3） ●（2011.10） ●（2012.3） ●（2011.12） △ ●（2012.3） △ Youyu ●（2008.9） ●（2009.1） ●（2010.1） ●（2010.3） ●（2009.3） / ●（2010.4） / 1.5 The Progress of Land Acquisition 1.5.1 Land Acquisition Procedure According to No.3 order of Ministry of Land and Resources- Administration Approach on Construction Land Checkup and Approval, the checkup and approval procedure of new construction land is: land prejudication, project decision, and land using application, planning, checkup and approval, implementation, land register:  According to project approval document and land using approval, municipal or county National Land Resource Bureau or the town governments, street offices involved in land acquisition investigate the approved construction land and freeze it. Any organization and individuals cannot use or explore this land without legal permission.  On the basis of investigation and other materials of land acquisition, municipal National Land &Resource Bureau sign land acquisition agreement with landowner of land acquisition after checkup and confirmation.  Publicize land acquisition plan and the policies, procedures, resettlement plan of land acquisition and compensation price. The scope of land acquisition and purpose also should be open for participation and supervision.  Village collective economic organizations and their members and other obliges should be compensated and resettled and land acquisition compensation should be handed out in time. 1.5.2 LA Schedule Up to this M&E, land preliminary hearing of Pingyao and Xinghuacun subprojects have been completed with land use approval in progress; LA of Pingyao subproject have been done, and related compensation of Pingyao subproject is on going; LA and related compensation of Xinghuacun subproject have been done, and the compensation have been paid to households. In Youyu subproject, implementation and compensation for LA has completed, the approval for engineering construction land has completed, and has get land use certificate from relative institutions.

5 "●" refers to complete with approval;"○"refers to complete without approval;"▲"refers to in progress;"△"refers to not start.

8 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

6 Table 1-5LA Schedule

Land Preliminary Land use Land LA No. Item Hearing Approval Acquisition Compensation

1 Pingyao ●（2011.12） ▲ ●（2012.12） ●（2013.2）

2 Xinghuacun ●（2009.7） ▲ ●（2011.12） ●（2012.3）

3 Youyu ●（2009.5） ●（2010.8） ●（2009.3） ●（2010.4） 1.5.3 Standards of LA Compensation and Implementation Up to this M&E, some compensation standards have no change, and the corresponding compensation has been distributed to the affected farmers; for Pingyao subproject, the standard decreased from CNY 50,025 to 49,500 per MU, but still 4,500 per MU higher to 45,000 per MU in PR. According to investigation, reasons of the change as listed as below: RP of Pingyao subproject was compiled in 2008. At that time, the standards were made in line with Document No.(2007) 193 issued by Land and Resources Department of Shanxi province and Standard Record of Unified Annual Output Value for LA in Pingyao County(PGT [2007]) issued by Pingyao Land and Resources Bureau. However, the LA was started in 2012, and new standards should be followed in line with Notice on Promulgation the Implementation of Provincial Unified Annual Output Value Standards for LA from Shanxi Provincial People's Government (JZF [2009] No.38). At the same time, According to the higher authority file spirit, and combining with the local actual situation, Land and Resources Department of Pingyao city published rules compensation of rural expropriation land (GZF [2010] No.2), including the detailed rules about that, Pingyao county rural land acquisition compensation standard is 48300 Yuan/MU, the young crop and ground attachments compensation are determined in accordance with the relevant professional evaluation. Because the land quality in Pingyao County is just so so, and at the same time, there is a certain degree of phenomenon such abandonment and land out of practice, the actual value of young crop and ground attachments is low, the actual compensation standard (include young crop and ground attachments compensation) is lower than that in last report. Meanwhile, something should be instructed specially: although the standard is lower than that in last report, also meet the require of relative policies, the process is open, the assessment is scientific, and the decreased standard is still higher than the compensation standards of original plan, and be general accepted by the affected people. Compensation stand in Youyu subproject changed from 21,000 Yuan/Mu in RP to 11,800 Yuan/Mu, decreased by 9,200 Yuan/Mu. The reason for the reduction of standard in Youyu subproject (heating project) is the difference of between the type of

6"●" refers to complete with approval;"○"refers to complete without approval;"▲"refers to in progress;"△"refers to not start.

9 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

land RP based on and that of actual. By investigation, site of the factory confirmed in RP does not tally with the actual situation, so the type of LA is different from that of actual situation, which means this part of land belongs to hilly area (Ⅲ type of land), not town planning area (Ⅰ type of area), so the compensation standard has difference. Up to this M&E, all compensation for LA has issued to villagers. Table 1-6Comparison of Compensation Standards

LA Compensation (CNY/MU) No. Item RP Actual Variation 1 Pingyao 45,000 49,500 +4,500 2 Xinghuacun 28,080 32,292 +4,212 3 Youyu 21,000 11,800 -9,200 1.6 Income and cost of Aps Up to this M&E, in a total of 112 units of sample size, in Pingyao subproject, annual income per household is 70,332.04Yuan, annual cost per household is 51,557.84 Yuan, annual average income per capita is 16277.72 Yuan, annual average cost per capita is 11,932.6 Yuan, annual average pure income per capita is 15,837.41 Yuan. In Xinghuacun subproject, annual income per household is 32,898.38Yuan, annual cost per household is 13,974.52Yuan, annual average income per capita is 82,63.57Yuan, annual average cost per capita is 3,510.19Yuan, annual average pure income per capita is 8,032.49Yuan. In Youyu subproject, annual income per household is 33,768.67Yuan, annual cost per household is 15,417.33Yuan, annual average income per capita is 7,236.14Yuan, annual average cost per capita is 3,303.71Yuan, annual average pure income per capita is 6,112.89Yuan. Up to this M&E, income and cost of sample households all have significant changes from last time. In Pingyao subproject, annual income per household increases 1,832.06Yuan, annual cost per household decreases 3,049.43Yuan, annual average income per capita increases 424.01Yuan, annual average cost per capita decreases 751.26Yuan, annual average pure income per capita increases 5,417.65Yuan. In Xinghuacun subproject, annual income per household increases 285.91Yuan, annual cost per household decreases 2,178.28Yuan, annual average income per capita increases 71.81Yuan, annual average cost per capita decreases 547.15Yuan, annual average pure income per capita increases 2,969.94Yuan. In Youyu subproject, annual income per household increases 6167.34Yuan, annual cost per household decreases 763.33Yuan, annual average income per capita increases 1,321.57Yuan, annual average cost per capita decreases 163.56Yuan, annual average pure income per capita increases 2,078.93Yuan. Table 1-7Income and cost of Sampled households

Annual Annual Annual Annual Income Annual cost per No. of Sampling Average Average Pure No. Item per household household (household) Income per cost per Income per (CNY) (CNY) Capita(CNY) Capita(CNY) Capita(CNY) 1 Pingyao 53 70,332.04 51,557.84 16,277.72 11,932.6 15,837.41

10 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Annual Annual Annual Annual Income Annual cost per No. of Sampling Average Average Pure No. Item per household household (household) Income per cost per Income per (CNY) (CNY) Capita(CNY) Capita(CNY) Capita(CNY) 2 Xinghuacun 53 32,898.38 13,974.52 8,263.57 3,510.19 8,032.49 3 Youyu 6 33,768.67 15,417.33 7,236.14 3,303.71 6,112.89 Total 112 45,666.36 26,983.23 10,592.477 6,248.833 9,994.263 1.7 Situation of Compensation and Resettlement for Housing Demolition 1.7.1 The Basis of Compensation and Resettlement for Housing Demolition Up to this M&E，Youyu subproject involves no HD and Resettlement; work related to compensation and resettlement for housing demolition has not been carried out in Xinghuacun subproject; due to the need of engineering construction, the work of compensation and resettlement for housing demolition has been carried out gradually, and compensation and resettlement for housing demolition goes on in accordance with relevant provisions of the relevant documents strictly. Specific including:  The regulations of urban house demolition and relocation of Shanxi Province.  The evaluation method of urban house demolition and relocation in Shanxi Province.  Interim measures for the benefits and compensation standard for urban house demolition and relocation in Shanxi Province.  The county master plan of Pingyao County.  The comprehensive improvement demolition guidelines of the county area of Pingyao County. (PZF [2007] No.27)  Measures for the implementation of compensation and resettlement for dismantlement in the county area of Pingyao County. 1.7.2 The Progress of Compensation and Resettlement for Housing Demolition Up to this M&E, the house demolition notice and the affected physical indicators survey have been completed, the housing demolition and the compensation and resettlement agreement have been signed, now it is during the implementation process of housing demolition and the compensation; in Xinghuacun subproject, the house demolition notice and the affected physical indicators survey have been completed, but the agreement of compensation and resettlement agreement has not been signed, the implementation as well as the compensation and resettlement for the housing demolition has not began, the specific implementation situation shall be followed in the next monitoring.

11 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 1-7 The Progress of Compensation and Resettlement for Housing

Demolition7 Agreement of compensation Compensa Housing House and Implement tion and No. Name demolition physical resettlement ation resettle notice indicators for housing ment demolition 1 Pingyao ●（2012.4） ●（2012.6） ●（2012.12） ▲ ▲

2 Xinghuacun ●（2011.8） ●（2011.10） △ △ △

3 Youyu Involves no HD and Resettlement 1.7.3 The Standard and Implementation of Compensation and Resettlement for Housing Demolition Up to this M&E, in Xinghuacun subproject, the work of compensation and resettlement agreement has not began, relative compensation and resettlement standard and measures for the implementation are in the brewing and establishing process, and will be followed and be in focus on in the next monitoring. In Pingyao subproject, content of housing demolition compensation consist of the area compensation, appendages compensation, indoor decoration compensation, relocation of the residential housing subsidies, nonresidential houses the suspension loss allowance, makeshift settlement subsidies and other subsidies, etc. Specific compensation standard is as follows:  The replacement area conversion of housing demolition is added by the number multiplied the demolished main housing area and convert coefficient, and the number multiplied the demolished auxiliary housing area and convert coefficient. Including: 1） Conversion standard of main house: main house (principle room) is cast-in-situ bungalow or a building of two or more stores, 1:1.2; main house (principle room) is floor bungalow, 1:1.1; main house (principle room) is fan-floor bungalow or brick structure, 1:1. 2） Conversion standard of auxiliary house: the aisle of cast-in-situ auxiliary house is higher than 2.8m (including 2.8m), 1:1; the aisle of cast-in-situ auxiliary house is between 2.5m and 2.8m, 1:0.9; the aisle of cast-in-situ auxiliary house is between 2.2m and 2.5m, 1:0.8; the conversion standard of floor auxiliary house reduces 0.1m2 according to that of cast-in-situ auxiliary house;  Compensation for appendages and decoration: affiliated facilities such as doors facing the road, toilets, walls, basements and buildings and structures whose aisle is lower than 2.2m, etc. are given monetary compensation according to practical evaluating price;  Relocation allowance: building area is smaller than 30 m2 (including 30 m2),

77"●" refers to complete with approval;"○"refers to complete without approval;"▲"refers to in progress;"△"refers to not start.

12 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank give a one-time payment of 200 Yuan, the area bigger than 30 m2, pay relocation allowance in accordance with the standards of 7 Yuan per square meter. 20 Yuan per square meter for production houses, 15 Yuan per square meter for stores and warehouse, 10 Yuan per square meter for office premises;  The suspension loss subsidies: give subsidies for six months according to average monthly tax last year, give wage subsidies for six months according to labor bureau registered number in labor contract and the per capita monthly salary in this company;  Makeshift settlement subsidies: building area of the demolished house is smaller than 30 m2 (including 30 m2), pay 120 Yuan per month, area bigger than 30 m2, 4 Yuan per month. The people Voluntarily accept the monetary compensation， give a one-time payment for six month of makeshift settlement subsidies;  Other subsides: phone, 100 Yuan per one, closed-circuit television, 300 Yuan per one, the solar water heater, 300 Yuan per one, air conditioner, 200 Yuan per one, wells, 100Yuan per one, power circuit, 5 Yuan per meter, trees, 50 Yuan per plant, broadband users, 50 Yuan per family. At the same time, by on-the-spot investigation, we know that, quality standards of resettlement residential housing in Pingyao subproject are: six floors, brick structure, cast-in-place floor and the stairs, lime plaster for housing wall, water and sediment ash plaster for kitchen and bathroom wall, cement cushion ground, model steel window with screen, install wooden door, heating equipment, fluctuations on upwards and downwards for water, televised dark buried pipe, stairs facilities in good condition. 1.8 Implementation Institution In order to implement the RP well, strengthen the supervision and management of resettlement action and achieve the target of the resettlement, Shanxi project Management office financed by ADB leading team office was set up. This leading team office takes in charge of leading and cooperation of project. Main Duties: Responsible for the project land acquisition, demolition and resettlement activities; charge for leadership, formulate policy, audited the resettlement schemes, compiled the internal monitoring reports submitted to the Asian Development Bank. Team members see Table 1-8. Table 1-8The Leading Team Member of Shanxi SCTDDSP Financed by ADB

Name Organization Principle ship Telephone Development and Reform department of Person in Ms. Yu Shanxi province/ Shanxi province project charge Management office Tian Shanxi province project Management Resettlement 13803459692 Tianjuan office member Wang Shanxi province project Management Resettlement 13753121028 Xiaoqing office member Liu Shanxi province project Management Resettlement 15536037180 Jiaming office member Sub-project offices take charge of project-specific work. The responsibilities are: (1)

13 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank write and management of resettlement plan; (2) implementation of resettlement plan; (3) appropriation and management of resettlement fund; (4) internal monitoring and cooperation;(5) write resettlement internal monitoring report; (6) check and conclusion of resettlement. Sub-Project Office Resettlement Staff see Table 1-9. Table 1-9Sub-Project Office Resettlement Staff of Shanxi STCDDSP ADB Financed Project

Sub-projects Name Organization Telephone Pingyao Du Pingyao County Development 15935460466 sub-project Zhuanqing and Reform Bureau Wutong sub-project Guo Yaying Wutong Town Government 13803482065 Youyu County Development and Youyu sub-project Liu Baoping 13037048833 Reform Bureau Jingsheng Li Wenlinag Jingsheng Town Government 13935496209 sub-project Ningziguan Liang Niangziguan Town Government 13191232961 sub-project Yanzhen Construction Qingxu sub-project Jia Runping 13513603303 Bureau Xinghuacun Han Zhiwei Xinghuacun Town Government 13934358789 sub-project In the implementation of project resettlement Baoding project office cooperates and takes in charge of resettlement work and each sub-project organization implement with local land or real estate departments. Detailed contents see sub-project reports. 1.8.1 Ability of Implementation Institution Shanxi Province ADB financed project office locates at No.112 Donghouxiaohe Road, City. There are completed office equipments and advanced Communication. Staffs have high quality and the degree of undergraduate or over it and also have more than two years working experiences. Two of them are in charged of resettlement institution. In order to strengthen the capacity of resettlement implementation institutions, In January 2011, Shanxi project office invited NRCR resettlement experts to have a resettlement policy training to project staff and the main contents were policy, management and monitoring& evaluation of resettlement. By training, resettlement implementation institutions understood the policies of resettlement of the ADB, specified the responsibilities of work and improved operation ability and policy dealing capability. 1.8.2 Internal Monitoring and Evaluation The PMO adopted an internal monitoring mechanism to examine the resettlement implementation. During resettlement, Shanxi Project Office and sub-project departments had persons specially assigned for monitoring and examining. They examined fund utilization, house re-building, and restore of resettlers‟ income. Once discovering some problems, they would report to the leading group timely and consulted with resettlers concerned to solve them. Shanxi ADB Financed project office has ensured NRCR to carry out M&E.

14 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

1.8.3 Evaluation Monitoring and Evaluation team do investigation of resettlement. The results of investigation indicate that management and implementation institutions set up an external independent mechanism and internal mechanism of M&E and carry out their own responsibility and task in the resettlement implementation. Monitoring& Evaluation suggests that the staff in related organizations should have further training on resettlement policy and implementation and this training should combine theory study with visit on the spot. Especially they should investigate and study the projects financed by ADB and add the institution efficiency and ability. 1.9 Conclusion and Suggestion for Monitoring and Evaluation 1.9.1 Conclusion （1）According to this M&E, construction of the two subprojects is implementing smoothly. At present, biding invitation of Xinghuacun subproject is in progress with no construction started; Pingyao subproject has completed project bidding, project construction is carried out smoothly. （2）For resettlement, up to this M&E, for Xinghuacun subproject, LA has been completed and related compensation has been paid to households; for Xinghuacun subproject, HD has not started yet; for Pingyao subproject, house expropriation and compensation agreement and the resettlement agreement, LA agreement has been signed, LA compensation has issued to affected village collective and farmers, as well as the work of land expropriation has been completed, housing demolition and compensation and resettlement work is under way, has not yet been completely ended; work related to resettlement in Youyu subproject has completed. （3）Up to now, land preliminary hearing of the Pingyao subproject and Xinghuacun subproject has been finished and all the land use certificates are still applying. The dealing with land use certificate in Youyu subproject has completed. （4）Up to this M&E, compensation standards are implementing well. （5）Relevant responsible agencies of each subproject have been improved with clear division of obligation, which have formulated improved regulations and employed high quality staff. At the same time, specific guidance or leading groups for each subproject have been built with detailed work division and clear obligation. （ 6 ） During the implementation, various public participation activities of each subprojects had been organized to ask public opinions on compensation standards, compensation policy, and resettlement modes, etc. （7）Appeal and complaint channels are transparency with reasonable agencies and staff. Up to this M&E, no appeals and complaints had been found. 1.9.2 Suggestion （1）To speed up the procedure of LA and land use certificate in Pingyao and Xinghuacun subproject; improve the work progress and efficiency of the engineering construction and resettlement in Xinghuacun and Youyu subproject. （ 2）To strengthen capacity building of agencies with further training of ADB resettlement policies and implementation; At the same time, it is necessary to perfect

15 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank the cost of the institutional capacity building, improve the enthusiasm of the resettlement staff; （3）Continue to improve the record of resettlement documents. It is key to save related information during the resettlement: build the record of LA and HD with special management to provide information for project examine and M&E; （4）Continue to support the vulnerable group and employment of APs with further improvement of reconstruction plan for APs and related implementation. （5）To do better internal M&E and refresh report forms timely; （ 6 ） Further public participation during construction process to secure the transparency and convenience of complaints and appeals of APs.

16 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

2 Pingyao Huji River Treatment Project

2.1 Project Background 2.1.1 Review of Resettlement Plan Huiji River is 3.5 km away from Pingyao ancient city and Yihui Reservoir was built at the intersection of its eastbound and westbound branches. The dam height is 20.4m, and its length is 730m. There are some supporting facilities such as spillways and spillway tunnel, etc. The storage capacity of reservoir is 26,300,000 m3 and its effective storage capacity is 6,400,000 m3. The reservoir was designed in accordance with "just once in one century" standard, was checked in accordance with "Just once in one thousand years" standard, thus it is a mid-size one whose primary function is flood control and irrigation and secondary function is supplying water for Pingyao County. The riverway is flexural and blocked and due to the inefficient management in recent years and severe conditions like dumping rubbish into the riverway as well as encroachment of buildings and fields, the normal flood passing has been severely affected. The current flood passing is in a poor state between the downstream of Yihui Reservoir and section along the Dong-Xia highway. The riverbed was severely damaged by human activities and became very rough. The riverbanks on both sides have collapsed and blocked the flood discharge. It is imperative to treat Huiji River comprehensively in hope that the economy in Pingyao old town can develop in a healthy way and a good environment can be provided to the foreign and domestic investors. On top of that, water will be stored in the riverway of main areas so that the treatment project of Huiji River can be an ecological project, which gives consideration to urban beautification and tourism, on the premise of guaranteeing flood control safety. The project scope covers: the total length from lower reaches of Yinli reservoir to the upper reaches of Dayun highway bridge is 7,211.7 m, including 800m as natural ecological section from lower reaches of Yinli reservoir to the highway bridge; 2,100 m as dredging treatment section of upper reaches from the highway bridge to aqueduct bridge; 3,100 m as urban reservoir and beautified section; 1,211.7 m as dredging treatment section of lower reaches from the reservoir section to the upper reaches of Dayun highway bridge. According to the budget, total investment for the project construction is CNY 236.3747 million, including CNY 132.58 million loaned by ADB, taking up the proportion of 56.09% of the investment; CNY 103.7947 million as domestic supporting investment, taking up the proportion of 43.91% of the investment, raised by Pingyao County Government. Among which, CNY 150.3999 million is prepared for the construction project of Huiji River treatment; CNY 17.0231 million is prepared as resettlement compensation fee; CNY 3.08 million (USD 0.44 million) is prepared for organizational capacity construction; CNY 17.0231 million is prepared as basic preparation fee; CNY 6.5627 million is prepared for the interest of the loan during the period of construction.

17 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

2.1.2 Resettlement Implementation In February 2008, for the small towns in Shanxi pilot development projects of the ADB loaned Pingyao County economic development and model construction, project proposal was approved by Shanxi Province Development and Reform Commission.( approvals JFGWZF [2008] No. 144.) In September 2009, for the small towns in Shanxi demonstration and development of the ADB loan project the Pingyao huiji River river training works project, the feasibility study report was approved by Shanxi Province Development and Reform Commission ( approvals JFGWZF [2009] No. 1377.) In December 2011, the ADB loan Huiji River river training projects, Pingyao County land use pre-approved by the Shanxi Provincial Department of Land( approvals JGTZH [2011] No. 1027). Land use certificates are still in the process. In April 2012, the preliminary design of the small towns in Shanxi demonstration and development of the ADB loaned project of Pingyao huiji River Governance projects get the approval by Shaanxi Provincial Development and Reform Commission.( approvals JiFGSJF [2012] No. 371.)

Figure 2-1Huiji river channel

Up to this M&E, for construction: in Pingyao subproject, feasibility study report, environmental assessment report and the preliminary design have been compiled and get the related department approval; the construction plan has completed. Known by investigation, civil engineering formally began on 27th Feb. 2013, up to 22nd Jun. 2013, bid No.1, river dredging project has almost completed, finished earthwork and garbage outward transport 13,060,000 m3, earthwork backfill 4,260,000 m3, finished the concrete retaining wall on both sides 1,200m, and 1,650 m3 concrete retaining wall, finished gravel pile foundation of steel dam brake; bid No.2, river dredging project has almost completed, finished earthwork and garbage outward transport 1,660,000 m3, earthwork backfill 670,000 m3, finished the concrete retaining wall on both sides 2,100m, 4,225 m3 concrete retaining wall, 800 m3

18 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank concrete floor, finished gravel pile foundation of steel dam brake. According to the ADB reply, project construction period is 1 year, which means from Mar. 2013 to Mar. 2014, construction period for governance is short and task is heavy. At the same time, due to the particularity of channel construction, the main floor season, Jul. to Aug., the main channel cannot construction, so the construction period for governance is tenser. In order to complete the task with quality, quantity and on schedule, PMO of Pingyao has taken the necessary measures by negotiating with unit in charge of construction, finished construction tasks of main trough retaining wall and floor, bid No.2 finished construction tasks of main trough retaining wall and floor from Dongwaihuan Bridge to No. 2 steel dam brake, and construction task in No.4, No.5, No.6 and No.7 shallow waters, and make the construction period plan for inverted dewatering. Up to this M&E, for resettlement, Resettlement Planning has been done, and obtained the relevant approval; physical indicators have also been measured and confirmation; demolition notice has been issued; house expropriation and compensation agreement and resettlement agreement have been signed, land expropriation has been completed; housing demolition and compensation and resettlement work is under way, has not yet been completely ended; LA compensation has issued to affected village collective and farmers .The specific implementation will be tracked until the time of the next monitoring. 2.1.3 Monitoring Content The resettlement monitoring inspected the resettlement progress, project impacts, compensation standards, funding and the use, public participation, complaint, appeals and so on. Problems are uncovered and recommendations are provided. 2.2 Resettlement of APs 2.2.1 Project Impact The Pingyao County Huiji river control works affect the Nancheng village, Beicheng village, Xinzhuang Village, Dongcheng Village and Xinnanbao of Gutao town, and Xiguo village, Yinhui village and Xiaocheng village of Yuebi town. Project totally involves 336.762 mu of LA permanently; 5604.35 square meters of residential HD, production buildings 78 square meters, and enterprises space of 13,595 square meters; affect living facilities, trees and plants, traffic facilities, water conservancy facilities and power facilities. Pingyao project land acquisition involves collective land, and did not involve contracted land of individual farmers. Village residents affected by LA rely on local tourism for their living, and the surrounding industrial land is no longer the main life source of income, therefore, the project affected population by LA are indirectly affected, totally 579 households covering 2415 people. At the same time, the project involves HD population as 23 households before, by optimizing design, actual housing demolition impact number dropped by 5 families and to 18 families. Because the affected enterprises are mostly family-individual form businesses, houses and operating plants are not partitioned or distinguished obviously, therefore, enterprises are also 5 units less relatively, and down to 19 units. The project affected 44households of vulnerable groups.

19 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

People's Government of Pingyao County in April 2012 announced the LA and HD, publicized compensation programs and acquisition scope. Up to this M&E, house expropriation and compensation agreement and resettlement agreement have been signed, land expropriation has been completed; housing demolition and compensation and resettlement work is under way, has not yet been completely ended; the land compensation fees paid work has not end yet. Up to this M&E, see the comparison between project actual impact and the planned in Table 2-1.for Pingyao subproject, the RP was completed in 2008 with the project proposal as the base of physical impact of resettlement. The range of LA and HD has no change compare to last M&E. The LA scope was changed in accordance with specific work in 2012. Table 2-1Comparison between actual physical impact of resettlement and RP of Pingyao

Subproject

Actual No. Item Unit RP Varied Impact 1 Affected village One 6 8 +2 2 PLA Mu 868.92 336.76 -532.16 3 TLA Mu 0 0 0 4 Affected households Household 602 579 -23 5 APs Person 2510 2415 -95 6 Households affected by HD Household 23 18 -5 Affected enterprises and 7 One 24 19 -5 institutions 2.2.2 Compensation Standards and the Implementation According to the requirements of document JGTZF [2009] No.38 issued by Shanxi Provincial Department of Land, Pingyao County Land Bureau issued a document – PGTZF [2010] No.2 -- Notice of Implementation of Unified Annual Output Value Standards of Land Acquisition in Pingyao County--to develop a unified standard of annual output value of cultivated land and the land acquisition compensation fee. The land compensation standard of the two towns involved has been determined as 1725 CNY/mu and the compensation is 29 multiples of the value. Among which, land compensation is 9 multiples of the value, the resettlement subsidy is 19 multiples of the value, and the Young crop compensation is 1 multiple of the value. The arable land compensation Price is 48,300 CNY/mu. Compared with the RP, subject to the influence of external factors such as rising prices, the current standard of compensation is higher than the standard plan, which also meet the economic development needs and local conditions to protect the production and living standards of the immigrants do not reduce and can increase with economic development and rising prices. Up to this M&E, Bureau of Land and Resources in Pengyao Count and Dongcheng Village in Gutao Town Pingyao Count signed land compensation agreement in 5th Nov. in 2012, compensated the 164.19 MU collective land of Dongcheng Village in Gutao Town Pingyao Count taken up by the project; the committee of Dongcheng Village in

20 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Gutao Town Pingyao Count received compensation in 28th Dec. 2012, compensation for attachments 1,229,623 Yuan, 9,160,000 Yuan in total. So far, relative compensation fees have not been paid to the affected farmers. 2.2.3 The Standard and Implementation of Compensation and Resettlement for Housing Demolition Up to this M&E, the house demolition notice and the affected physical indicators survey have been completed, the housing demolition and the compensation and resettlement agreement have been signed, now it is during the implementation process of housing demolition and the compensation. Currently, it is in the implementation process of the HD and compensation and resettlement. In the original plan, there are 23 HD households, due to the improvement of design, the HD households were reduced by 5, up to now, there are still 1 household demolition work has yet to begin. In Pingyao subproject, content of housing demolition compensation consist of the area compensation, appendages compensation, indoor decoration compensation, relocation of the residential housing subsidies, nonresidential houses the suspension loss allowance, makeshift settlement subsidies and other subsidies, etc. Specific compensation standard is as follows:  The replacement area conversion of housing demolition is added by the number multiplied the demolished main housing area and convert coefficient, and the number multiplied the demolished auxiliary housing area and convert coefficient. Including: 3） Conversion standard of main house: main house (principle room) is cast-in-situ bungalow or a building of two or more stores, 1:1.2; main house (principle room) is floor bungalow, 1:1.1; main house (principle room) is fan-floor bungalow or brick structure, 1:1. 4） Conversion standard of auxiliary house: the aisle of cast-in-situ auxiliary house is higher than 2.8m (including 2.8m), 1:1; the aisle of cast-in-situ auxiliary house is between 2.5m and 2.8m, 1:0.9; the aisle of cast-in-situ auxiliary house is between 2.2m and 2.5m, 1:0.8; the conversion standard of floor auxiliary house reduces 0.1m2 according to that of cast-in-situ auxiliary house;  Compensation for appendages and decoration: affiliated facilities such as doors facing the road, toilets, walls, basements and buildings and structures whose aisle is lower than 2.2m, etc. are given monetary compensation according to practical evaluating price;  Relocation allowance: building area is smaller than 30 m2 (including 30 m2), give a one-time payment of 200 Yuan, the area bigger than 30 m2, pay relocation allowance in accordance with the standards of 7 Yuan per square meter. 20 Yuan per square meter for production houses, 15 Yuan per square meter for stores and warehouse, 10 Yuan per square meter for office premises;  The suspension loss subsidies: give subsidies for six months according to average monthly tax last year, give wage subsidies for six months according to labor bureau registered number in labor contract and the per capita monthly salary in this

21 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank company;  Makeshift settlement subsidies: building area of the demolished house is smaller than 30 m2 (including 30 m2), pay 120 Yuan per month, area bigger than 30 m2, 4 Yuan per month. The people Voluntarily accept the monetary compensation， give a one-time payment for six month of makeshift settlement subsidies;  Other subsides: phone, 100 Yuan per one, closed-circuit television, 300 Yuan per one, the solar water heater, 300 Yuan per one, air conditioner, 200 Yuan per one, wells, 100Yuan per one, power circuit, 5 Yuan per meter, trees, 50 Yuan per plant, broadband users, 50 Yuan per family. At the same time, by on-the-spot investigation, we know that, quality standards of resettlement residential housing in Pingyao subproject are: six floors, brick structure, cast-in-place floor and the stairs, lime plaster for housing wall, water and sediment ash plaster for kitchen and bathroom wall, cement cushion ground, model steel window with screen, install wooden door, heating equipment, fluctuations on upwards and downwards for water, televised dark buried pipe, stairs facilities in good condition. Resettlement residential housing for Pingyao Subproject located at the east of out ring of Chengdong, the north of Xuefu Road, covered an area of 100 MU, were apartment of 18th floor, and were in construction from 10th Oct. 2012, and are expected to delivery at the end of Jul. 2014. The whole project is the construction process of stress up to now. The whole project is in the intense construction process.

Figure 2-2 The Effect of Relocation Area and The Construction Site Up to this M&E, a HD household work still has yet been performed, and remain houses have implemented demolition, the HD compensation has issued to affected households. Something need special note that, the affected enterprises are all self-employed family enterprises, and cannot distinguish and partition from family houses clearly, so during the HD implementation process, area are accounted together. At the same time, to deal with the existence individual phenomenon in the process of actual demolition, relative units sign HD agreement with them separately. See details in table below.

22 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 2-2 Compensation Details of Affected HD Households

Construction Total compensation Makeshift settlement Relocation Appendages Attachments Land compensation Name Land area (m2) area (m2) (Y) subsidies (Yuan) allowance (Yuan) compensation (Y) compensation (Y) (Y) FHQ 289.25 531.48 706,967 27,768 4,050 87,305 450 33,404 KXQ 2,261.049 Collective land 4,592,543.05 217,061 31,655 707,321 14,750 0 YGX 108.47 108.47 335,683 10,413 1,519 4,060 450 6,818 LJF 153.83 172.961 432,127 14,768 2,154 69,958 9,900 10,871 FSY 163.19 169.62 456,799 15,666 2,285 28,830 0 10,661 LRX 145.097 124.549 420,949 13,929 2,031 29,985 7,150 7,828 WSZ 255.365 268.515 617,364 24,515 3,575 16,1510 10,750 16,876 CWH 81.722 133.34 228,173 7,845 1,144 9,550 14,000 8,380 FHL 300.166 397.015 753,869 28,816 4,202 40,239 9,250 24,952 KSX 144.24 144.24 420,377 13,847 2,019 98,978 12,450 9,065 WYQ 192.476 213.18 514,106 18,478 2,695 207,161 1,050 13,398 GGQ 902.001 0 2,076,369 88,512 12,908 63,619 18,450 0 GQB 741.272 1,333.34 1,855,668 71,162 10,378 452,662 22,000 83,800 DQM 1,011.396 2000.1 2,998,184 97,094 14,160 109,746 1,8550 125,706 GBM 540.697 1,266.73 1,277,404 51,907 7,570 284,100 14,550 79,614 YY 411.461 0 963,456 39,500 5,760 484,369 25,950 0 STM 254.751 284.868 702,669 24,456 3,567 36,460 8,450 17,904 HSH 420.602 0 966,118 40,378 5,888 48,949 15,875 0 YBP 4,908.829 4,486.108 11,993,267 471,248 15,831 822,315 102,400 281,952 YHP 2,686.131 2310.46 6,478,247 257,878 17,034 716,470 84,550 145,212 DSY 537.781 838.09 962,728 51,626 7,528 180,960 23,240 52,674

23 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

2.3 Resettlement Implementation Institution and Its Capacity 2.3.1 Resettlement Implementation Institution The project's resettlement work is implementing smoothly, Pingyao County land aquisition compensation and resettlement for the project with a dedicated staff to form a smooth information transfer channels on the bottom. Pingyao County set up a special Pingyao County Huiji River comprehensive management of headquarters, as commander in chief of the headquarters of the county deputy secretary and two deputy magistrate serving as executive vice commander and deputy commander, members, including government offices, County Commission for Discipline Inspection, County Supervision Bureau, County Development and Reform Commission, the County Water Authority, the County Public Security Bureau, the county finance bureau, County Land Resources Bureau, County Housing Authority, the County Planning Board, County lived Construction Committee, the County Bureau of Cultural Relics, County Tourism Bureau, County Forestry Bureau County radio and television centers and affected more than 20 units of the township government; at the same time, the command of the Ministry of the comprehensive coordination office and seven working groups were responsible for a specific task. See the main members list in the table below. Table 2-3Main staff name list of executive agencies

Position in the Agency Name Original institution Position project Deputy PMO Lei Xinping County committee Chief guide president Office of Routine deputy chief Comprehensive Niu Qihu County government Deputy head guide; director of the Coordination office Duan County development Head of the PMO Guide Zhaoyi and reform bureau bureau Group of Planning and County planning Head of the Ji Taiping Group leader Design bureau bureau Group of Land County land and Head of the Li Hongtao Group leader Reservation resources bureau bureau Group of LA and Bai County housing Head of the Group leader Resettlement Guosheng management bureau bureau Group of Project Fan Head of the County water bureau Group leader Construction Dengliang bureau Group of Funding Huo County financial Head of the Supervision and Group leader Tianhua bureau bureau Investigation Group of Supervision County monitor Head of the Meng Gang Group leader and Guidance bureau bureau Group of Security Hao Junxiu County police bureau Head of Group leader

24 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Position in the Agency Name Original institution Position project supervisors Resettlement Office of Government of Gutao Head of the Shi Xinjian Guide Gutao town town town Resettlement Office of Liang Government of Yuebi Head of the Guide Yuebi town Shaojin town town 2.3.2 Institute Capacity Pingyao County PMO is self-contained and has advanced transportation and communication equipment. In order to guarantee the smooth implementation of resettlement the PMO arranges specific person with good quality and ability and more than two years‟ experiences in resettlement for resettlement work. At the same time, they set up internal monitoring system and there is person specially assigned for the work. 2.4 Typical Investigation of Affected Villages The affected villages includes 5 villages in Gutao town and 3 villages in Yuebi town, which are Nancheng Village, Beicheng Village, Xinzhuang Village, Dongcheng Village, Xinnanbao Village, Xiguo Village, Yinhui Village, Xiaocheng Village. Among which, Dongcheng village has been affected mostly. Therefore, in Aug. 2013, external M&E team conducted a typical survey and in-depth interviews in the village. Table 2-4Interview in typical village Interview Time: 2013-8-3 Place: Dongcheng Village Interviewee: President Wan of Dongcheng Village There are 4,060 households in Dongcheng Village, with a total population of 10,673 persons. The land is dry land, which is low land productivitily with fewer agricultural incomes. The construction projects affects 127.015 mu of village land, within which, 6.01 mu arable land, 4.22 mu woodland, 0.401 mu other agricultural land, and 116.384 mu constructive land; 44 villagers were affected, including 27 affected by land acquisition, 17 affected by house demolition, no one affected by both LA and HD. In total, there are 3921.25 square meters housing to be demolished. Because the village is close to the city, the self-employed and small businesses called more wider source of income of the tertiary industry, therefore fewer personnel engaged in agricultural production, most of the labor force engaged in business, work, services, these revenues accounted for the proportion of household incomemore. The affected land are collective land, less impact on the individual; demolition of a more direct impact, and the impact of the production and operation of enterprises, to bring some villagers unchanged, but the whole villagers support engineering construction, because the, a projects that benefit the building of this project, the relocatees but reasonable assessment of compensation and properly resettled, whether housing conditions or the quality of housing has been greatly improved, and the relocatees are generally

25 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

able to accept obviously, to improve their life. There are 5 people in Wang Yun-qing family, and more than 1 MU cultivated land in the family. Cultivated land mainly plant corn, and can collect more than 1,500 catties, the price of corn in local area is between 1.2 to 1.5 Yuan per catties. His son works in the insurance company, the salary is about 2,500 Yuan per month, daughter-in-low is a primary school teacher, the salary is about 2,500-3,000 Yuan per month, so agricultural income only accounts for only the rarely part of the family income. Among all the land, demolition involves 0.3 Mu land of Wang family, and the quadrangle is brick structure. A mass meeting was held in Furongyuan in 21st May. 2012, the villagers can choose cash subsidies or village houses voluntarily. After land acquisition announcement was posted on in Jun. 2012, then leaders in town, count and village established ten work teams. There are 3-4 people in each team, they take charge of 500 people in the village and the villagers are satisfied with this manner. Contact information: 13663443709.

2.5 Investigation and Analysis of APs' Productive and Living Standard 2.5.1 Household Population (1) Household Population Structure According to the investigation, there are 229 persons in the 53 households, all of them are agricultural population; investigated with 103 women, taking up 44.98% of the whole; 176 labors, taking up 76.86% of the whole; 24 supporting/elder people, taking up 10.48% of the whole; 37 schooling children, taking up 16.16% of the whole. See the structure of household population and age sections in Table below. Table 2-5Sample household Population Structure

No. Populat Agricultural Non-agricultural Fem Labor Raising/Disabled/Olde Studen ion Population Population ale s r Population ts 1 2 2 0 1 2 0 0 2 3 3 0 1 2 0 1 3 3 3 0 1 2 1 0 4 4 4 0 2 2 0 2 5 5 5 0 2 3 0 2 6 4 4 0 1 4 0 0 7 4 4 0 2 4 0 0 8 4 4 0 2 4 0 0 9 6 6 0 3 5 1 2 10 5 5 0 3 2 0 3 11 7 7 0 2 4 1 2 12 4 4 0 1 4 0 0 13 3 3 0 1 3 0 0 14 7 7 0 3 5 0 2 15 4 4 0 1 4 0 0

26 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

16 5 5 0 2 4 0 1 17 5 5 0 1 5 0 0 18 5 5 0 1 4 0 1 19 5 5 0 2 5 0 0 20 3 3 0 1 3 0 0 21 5 5 0 1 3 0 2 22 3 3 0 1 3 0 0 23 4 4 0 2 4 0 0 24 5 5 0 2 5 0 0 25 6 6 0 3 4 0 2 26 5 5 0 1 4 0 1 27 4 4 0 3 4 0 0 28 4 4 0 2 4 0 0 29 4 4 0 2 2 0 2 30 4 4 0 1 4 0 0 31 4 4 0 3 3 1 2 32 5 5 0 2 5 0 0 33 6 6 0 3 6 0 0 34 5 5 0 3 4 1 0 35 3 3 0 2 2 1 0 36 5 5 0 2 3 2 0 37 6 6 0 2 4 2 0 38 3 3 0 1 3 0 0 39 4 4 0 2 2 2 0 40 5 5 0 4 2 3 0 41 3 3 0 1 0 3 0 42 3 3 0 1 3 0 0 43 3 3 0 2 2 0 1 44 6 6 0 5 5 0 4 45 3 3 0 2 1 2 0 46 4 4 0 2 2 0 2 47 4 4 0 1 2 1 1 48 4 4 0 3 2 1 1 49 4 4 0 2 3 1 0 50 4 4 0 2 3 0 2 51 4 4 0 2 3 1 0 52 5 5 0 2 5 0 0 53 4 4 0 3 3 0 1 Tot 229 229 0 103 176 24 37 al Rat 44. 76.86 100% 100% 0 10.48% 16.16% io 98% %

27 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

(2) Age For the investigated 53 households and 229 APs, there are 33 persons aged lower than 16, taking up 14.41%; 170 persons aged between 17 and 50, taking up 74.24%; 23 persons aged between 51 and 59, taking up 10.04%; 3 persons aged higher than 60, taking up 1.31%. See age structure in Table below. Table 2-6List of Age Structure

Age Group Population Ratio ≤16 33 14.41% 17~50 170 74.24% 51~60 23 10.04% ≥60 3 1.31% (3) Education For the investigated 53 households and 229 APs, there are 10 persons as Illiteracy, taking up 4.73%; 55 persons received primary school education, taking up 24.02%; 112 persons received junior middle school education, taking up 48.91%; 37 persons received senior middle school education, taking up 16.16%; 15 persons received education above senior middle school level, taking up 6.55%. Table 2-7List of Education

Educational Level Population Ratio Illiteracy 10 4.37% Primary School Education 55 24.02% Junior Middle School Education 112 48.91% Senior Middle School Education 37 16.16% Above Senior Middle School 15 6.55% Education 2.5.2 The Production and Operation Situation By investigation, for the investigated 53 households, there are contracted lands 337.61 Mu, about 6.37Mu for each household, and about 1.47 Mu for each person. Known by investigation, investigated households mainly planted sorghum and maize, a season per year. Due to reasons such as lack of climate, water conservancy condition, yield is not high. 2.5.3 Main Properties of households According to this M&E, diffusion rates of TV, washing machine, fixed telephone, mobile phone are comparatively higher, while diffusion rates of vacuum cleaners, solar energy and smoke lampblack machine lower, fitting local level of production. It is consistent with local production level and the actual demand of life. See details of properties of households investigated in Table below. Table 2-8List of Main Properties

Item Unit Amount Household Ownership Auto cars Platform 29 54.72% Motorcycle Platform 35 66.04%

28 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Tractor Platform 4 7.55% Fixed telephone Set 57 107.55% TV Set 75 141.51% Washing machine Set 59 111.32% DVD/VCD Set 37 69.81% Tape-recorder Set 3 5.66% Camera Set 36 67.92% Water heater / solar Set 19 35.85% water heater Smoke lampblack Set 24 45.28% machine Microwave oven Set 13 24.53% Vacuum cleaner Set 2 3.77% Air conditioning Set 11 20.75% Mobile phone Set 123 232.08% 2.5.4 Housing Built-up Area and Living Conditions By this investigation, for the investigated 53 households housing and living conditions are listed in two tables below. Table 2-9List of Housing Area

Housing Area（m2） Homestead Area Item Rooms Brick-co Brick-wo Earth-w (m2） Simple Total ncrete od ood

Total 225 18851.78 7832.84 1700.43 468.22 181.96 10183.45

Per 4.25 355.69 147.79 32.08 8.83 3.43 192.14 household Per Capita 0.98 82.32 34.20 7.43 2.04 0.79 44.47

Ratio 76.92% 16.70% 4.60% 1.79% 100%

Table 2-10List of Living Condition

Actual Condition Living Condition Satisfied Unsatisfied Ratio of Satisfaction households households Separate bathroom 48 5 90.57% Separate kitchen 53 0 100% Power supply 53 0 100% Tap-water 53 0 100% Cable television 53 0 100% Broadband network 37 16 69.81% Dewatering condition 53 0 100% Light condition 53 0 100%

29 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

2.5.5 Household Yearly Income (1) Household Income Source According to the investigation, the 229 households' income sources in 2012 were as following: agricultural income accounts for 9.52% of total household income; sideline income accounts for 13.16% of total household income; individual business income accounts for 22.65% of total household income; wages income accounts for 24.60% of total household income; work outside income accounts for 31.06% of total household income. See details of properties of households investigated in Table below. Table 2-11List of household Income Source

Income Item Total Income (CNY) Ratio

Agricultural Income 354,872.14 9.52% Sideline income 490,621.05 13.16% Individual business income 844,137.51 22.65% Wages income 917,151.87 24.60% Work outside income 943,026.58 25.30% Other income 177,788.73 4.77% Total 3,727,597.88 100.00%

Figure 2-3Household Income Source (2) Household Income Level According to the investigation, total yearly income of the 53 households was CNY 3,727,597.88; with CNY 70,332.04 per household; with CNY 16,277.72 per capita. Among them, agricultural income was CNY 6,695.70 per household; sideline income was CNY 9,257.00 per household; individual business income was CNY 15,927.12 per household; wages income was CNY 17,304.75 per household; work outside income was CNY 17,792.95 per household; other income was CNY 3,354.50 per household. See details of properties of households investigated in Table below. Table 2-12List of household Income Level

30 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Per household Income Per Capita Income Income Item Total Income (CNY) (CNY) (CNY) Agricultural Income 354,872.14 6,695.70 1,549.66 Sideline income 490,621.05 9,257.00 2,142.45 Individual business income 844,137.51 15,927.12 3,686.19 Wages income 917,151.87 17,304.75 4,005.03 Work outside income 943,026.58 17,792.95 4,118.02 Other income 177,788.73 3,354.50 776.37 Total 3,727,597.88 70,332.04 16,277.72

Figure 2-4Household Income Distribution As can be seen from the above analysis, the main sources of household income are to work outside the village, run self-business and wage income. The rate agriculture income taken account in the household income is not high. So, resettlement no longer rely on the land any more, after the LA, more labors liberated from the land and can work in other jobs. After LA, use the LA compensation reasonably is vital to the income restore. 2.5.6 Household Yearly Cost (1) Household Cost Structure According to the investigation, the 53 households‟ cost in 2012 was as following: procedure of seeds accounts for 1.11%; procedure of pesticides and fertilizers accounts for 1.15% of total cost; irrigation water cost accounts for 1.07% of total cost; mechanical operating cost accounts for 0.36% of total cost; living power and water cost accounts for 3.05% of total cost; fuel cost accounts for 8.38% of total cost; communication cost accounts for 5.74% of total cost; traffic and fuel cost accounts for 3.39% of total cost; education cost accounts for 12.73% of total cost; medical cost accounts for 1.98% of total cost; food cost accounts for 30.64% of total cost; clothes cost accounts for 18.72% of total cost; basic necessities cost accounts for 20.91% of total cost ; other cost accounts for 0.77% of total cost. Table 2-13List of household Cost Structure

Item Total Cost (CNY) Ratio Seeds 30,331.05 1.11%

31 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Pesticides and Fertilizers 31,423.38 1.15% Irrigation Water Cost 29,238.72 1.07% Mechanical Operating Cost 9,837.84 0.36% Living Power and Water Cost 83,342.26 3.05% Fuel Cost 228,988.55 8.38% Communication Cost 156,848.97 5.74% Traffic and Fuel Cost 92,635.08 3.39% Education Cost 74,599.04 2.73% Medical Cost 54,105.83 1.98% Food Cost 837,258.35 30.64% Clothes Cost 511,535.62 18.72% Basic Necessities Cost 571,380.19 20.91% Other Cost 21,040.52 0.77% Total 2,732,565.4 100.00%

Figure 2-5household Cost Structure (2) Household Cost Level According to the investigation, the 53 households‟ cost in 2012 was total yearly cost of the 53 households was CNY 2,732,565.4; with CNY 51,557.84 per household; with CNY 11,932.6per capita. Among them, procedure of seeds was CNY 572.28; procedure of pesticides and fertilizers was CNY 592.89 of total cost; Mechanical Operating Cost was 551.67 of total cost; mechanical operating cost was CNY 185.62 of total cost; living power and water cost was CNY 1,572.50 of total cost; fuel cost was CNY 4,320.54 of total cost; communication cost was CNY 2,959.41 of total cost; traffic and fuel cost was CNY 1,747.83 of total cost; education cost was CNY 1,407.53 of total cost; medical cost was CNY 1,020.86 of total cost; food cost was CNY 15,797.33 of total cost; clothes cost was CNY 9651.62 of total cost; basic necessities cost was CNY 10,780.76 of total cost ; other cost was CNY 396.99 of total cost.

32 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 2-14List of household Cost Level

Total annual cost Annual cost per Annual cost per Item (CNY) household (CNY) capita (CNY) Seeds 30,331.05 572.28 132.45 Pesticides and Fertilizers 31,423.38 592.89 137.22 Irrigation Water Cost 29,238.72 551.67 127.68 Mechanical Operating Cost 9,837.84 185.62 42.96 Living Power and Water Cost 83,342.26 1,572.50 363.94 Fuel Cost 228,988.55 4,320.54 999.95 Communication Cost 156,848.97 2,959.41 684.93 Traffic and Fuel Cost 92,635.08 1,747.83 404.52 Education Cost 74,599.04 1,407.53 325.76 Medical Cost 54,105.83 1,020.86 236.27 Food Cost 837,258.35 15,797.33 3,656.15 Clothes Cost 511,535.62 9,651.62 2,233.78 Basic Necessities Cost 571,380.19 10,780.76 2,495.11 Other Cost 21,040.52 396.99 91.88 Total 2,732,565.4 51,557.84 11,932.6

Figure 2-6Household Cost Distribution

33 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

2.5.7 Comparative Analysis between Annual Household Income and costs The results can be analyzed according to the following table: for the investigated 53 affected households, the balance between income and cost at end of the year is CNY 995,032.48; household year-end balances income is CNY 18,774.20; APs net income is CNY 15,837.41 per capita. For income source, the main ways are private self-business income, wage income and outside employment income. Agricultural income accounts for a small proportion It also conforms to the actual situation of developing tourism and the individual industrial and commercial enterprises as the leading industry. For cost, the main parts are food cost, clothing cost and basic necessities cost. It is in accordance with actual demand, and it is predictable, in feature years, the income and cost structure will not change a lot. LA will affect famers to some extent, use LA compensation reasonably and effectively, seek viable alternative income, can effectively guarantee the income of resettlement will not affected because of LA, then benefit from the project. Table 2-15Household Income and costs

Total Yearly cost (CNY) Balance (CNY) Annual average Annual per Total Yearly Household household capita net Productive Living Total Income (CNY) average net income cost cost balance balance household (CNY) income (CNY) 2,631,734. 995,032. 3,727,597.88 100,830.99 18,774.20 68,429.56 16,837.41 41 48 2.5.8 Analysis of Changes in Net income According to the investigation, the 53 households‟ annual productive cost in 2012 was CNY 11,492.29 per capita, and decrease by CNY 38.43 compare with CNY 11,971.03 per capita in last M&E. Among them, procedure of seeds was CNY 132.45, accounts for 1.11% of the total, decrease by 1.94% compare with that in last M&E; procedure of pesticides and fertilizers was CNY 137.22 of total cost, accounts for 1.15% of the total, decrease by 2.18% compare with that in last M&E; irrigation Water Cost was CNY 127.68 of total cost, accounts for 1.07% of the total, decrease by 1.68% compare with that in last M&E; productive cost was CNY 440.31 of total cost, accounts for 3.69% of the total, decrease by 15.01% compare with that in last M&E. At the same time, the annual living cost per capita was: living power and water cost was CNY 363.94 of total cost accounts for 3.05% of the total, no change compare with that in last M&E; fuel cost was CNY 999.95 of total cost accounts for 8.17% of the total, increase by 2.23% compare with that in last M&E; communication cost was CNY 684.93 of total cost accounts for 5.74% of the total, decrease by 0.63% compare with that in last M&E; education cost was CNY 325.76 of total cost accounts for 2.73% of the total, increase by 5.09% compare with that in last M&E; medical cost was CNY 236.27 of total cost accounts for 1.98% of the total, no change compare with that in last M&E; food cost was CNY 3,656.15 of total cost accounts for 30.64% of the total,

34 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank no change compare with that in last M&E; clothes cost was CNY 2,233.78 of total cost accounts for 18.72% of the total, no change compare with that in last M&E; other cost was CNY 91.88 of total cost accounts for 0.77% of the total, no change compare with that in last M&E. In last M&E, annual average net income per capita of affected household was YNC 16510.99; in this M&E, it was YNC16837.41, and increase by 1.98%. After LA, farmers have more free time to work or to develop a sideline, and in Pingyao Count, the tourism develop fast, which drives the transformation of resettlement income structure. Now the resettlements are in the transition period, adapt to the transition to the non-agricultural gradually, although their income did not increase a lot in 2012, after the investment of the early stage, living standards of the late stage will change quickly. So, LA almost has no effect on basic living standards of resettlements. Table 2-16 The Change of Income Structure before and after Land Acquisition and Resettlement

Annual Income per household in Annual Income per household in

2011 (CNY) 2012 (CNY) Agricultural Income 4,535.32 6,695.7 Sideline income 9,258.34 9,257 Individual business income 17,200.92 15,927.12 Wages income 17,261.54 17,304.75 Work outside 20,388.39 17,792.95 Total 73,295.25 70,332.04

Figure 2-7Income Structure before and after LA

2.6 Vulnerable Groups The project affects 44 households with vulnerable people who live in Yinhui village, Xiguo village, Dongcheng village, and Nancheng village. There are 16 absolute-poor families, including 8 with elderly persons and 8 with disabled persons; 28 low-income poor families, including 8 headed by women, 18 with disabled persons and 2 with

35 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

long-term patients. For absolute-poor families, the project will give each of them one-time household grants of 3000CNY; for low-income poor families, the project will give each of them one-time household grants of 2000CNY to improve the livelihoods of them. Before the implementation, standards of vulnerable families subsidies will be adjusted according to relevant actual situation. Up to this M&E, original life level and quality was not reduced because of the construction of the project, and the overall recovery is in good condition. 2.7 Public Participation Public participation is an important factor to ensure the smooth implementation of the resettlement. The immigrant land acquisition and demolition activities should be widely listen to the views of various social groups, government departments, rural and immigrant, to encourage the parties to participate in the resettlement work. Up to this M&E, land acquisition and implementing agencies of Pingyao County had conducted several resettlement forum and village meetings in the affected villages and towns and villages to publicize and explain project construction content, affect the scope of the project impact and related compensation and resettlement policies for affected persons, with in-depth communication; at the same time, carried out extensive exchanges for determining compensation standards and resettlement way and fought for the views of affected households in these areas fully. At the same time of asking APs for suggestions, project unit also invited some people not influenced to attend the forum to hear about their opinions and advices on APs resettlement of the project. Through various activities of public participation, residents in project area have a full realization of the significance of the project construction and the coming help measures. They hope the project construction can be carried out as soon as possible to achieve the obvious benefits of promoting local economic and social development. Table 2-17 Public participation Participation Participation Participation Participation Participation Content Time Subject Way Frequency Affected Explaining the policy of this project; Seeking 2008.9~2008.12 Symposium 3 villages, APs advice for RP Investigation of APs by family mode, education Questionnaire 2008.12~2009.3 APs 3 degree, ethnic composition, family property investigation income and expenditure, etc Affected 2009.5~2009.9 Symposium 2 Collecting the APs’ concern and demand villages, APs Determining the loss influence, economic Affected information of the affected villages; Explaining 2009.1~2011.12 Villager congress 6 villages, APs the policy of this project; Determining the change of the APs’ concern and demand Affected 2011.12~2012.3 Symposium 2 Seeking advice for compensation rate villages, APs 2012.6~2012.8 Affected Villager congress 2 Seeking advice for compensation rate about

36 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

villages, APs Symposium compensation and resettlement for housing demolition 2.8 Grievance and Appeal The transparent, effective channel of grievance and appeal were set up in the project planning and implementation process. PMO told the channel to Aps by holding meetings. This let Aps know their rights of grievance and appeal well. The channel was unblocked. 2.9 Conclusions and Suggestions 2.9.1 Conclusions (1) Up to now, the project was progressing smoothly, with which the land pre-trial and preliminary design approved, and the preparation of tender documents and land use permit for the work in progress. The subproject has to complete the project bidding, and project construction has not yet been carried out. (2) For resettlement, up to this M&E, house expropriation and compensation agreement and the resettlement agreement, LA agreement has been signed, LA compensation has issued to affected village collective and farmers, as well as the work of land expropriation has been completed, housing demolition and compensation and resettlement work is under way, has not yet been completely ended (3) The project work has been well organized, with skillful staff and work ability to meet requirements. At the same time, specific project headquarters and the project office had been set up. The project resettlement work is responsible of the Pingyao County Development and Reform Commission for coordination, with Pingyao County Water Bureau and affected townships specifically responsible for the implementation and the internal monitoring. External independent monitoring implemented by NRCR of Hohai University. (4) In order to reduce negative effects on affected people, with the combination of inflation, price increasing and other external factors, the project agency improve the compensation standard of land acquisition in line with RP. After investigation, APs generally fell satisfied. (5) During the implementation, various public participation activities of each subproject had been organized to ask public opinions on compensation standards, compensation policy, and resettlement modes, etc. (6) Appeal and complaint channels are transparency with reasonable agencies and staff. Up to this M&E, no appeals and complaints had been found. 2.9.2 Suggestions (1) Speed up the procedures for land acquisition and land use permits processes. In accordance with relevant national policies, land acquisition procedures must follow a strict process. Therefore, it is proposed to speed up the processing of land acquisition procedures, the legalization of land use, and to provide legal protection for successful completion of land acquisition and demolition work and the smooth implementation of the civil works is going on. (2) Speed up HD work and compensation and resettlement work, ensure delivery of

37 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank resettlement community on time with good quality. (3) Continue to strengthen the institutional capacity-building, it is recommended that further related institutions and personnel items ADB resettlement policy and the implementation of training, the theoretical study and a visit to the exchange in the form of a combination of, in particular, to the implementation completed or are being implemented ADB the loan project study, study, to further enhance the efficiency and capacity of the institutions. (4) To strengthen the work of resettlement data archiving. Attention to to save related materials in the resettlement process, the establishment of land acquisition and resettlement files provide the basic information for project completion and acceptance, and monitoring and evaluation. (5) Continue to support the vulnerable group and employment of APs with further improvement of reconstruction plan for APs and related implementation. (6) To do better internal M&E and refresh report forms timely; (7) Further public participation during construction process to secure the transparency and convenience of complaints and appeals of APs.

38 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

3 Xinghuacun Town Regional Road Network

Renovation Sector Project

3.1 Project Background 3.1.1 Review of Resettlement Plan The Taiyuan-Zhongwei- Railway was completed and open to traffic in January 2011, and a passenger and freight station has been constructed in the northeast of the urban area of Xinghuacun Town. The completion of this major infrastructure project gives the town the potential of developing into an important freight transport hub in the region. The construction of the New Logistics and Storage Zone based on this station has not been started, and there is no supporting infrastructure yet. Therefore, constructing the road network and infrastructure supporting the station and the New Zone has become a prerequisite to taking full advantage of the Taiyuan-Zhongwei-Yinchuan Railway to ensure the outward transport of cargoes from nearby areas and address the rapid growth of traffic. According to the Preliminary Design for the Xinghuacun Town Urban Road Network Construction Project under the ADB-funded Shanxi Small Cities and Towns Development Demonstration Sector Project, the Subproject includes the construction of the access road to the Taiyuan-Zhongwei-Yinchuan Railway Station, the connecting road of National Highway 307 (Xinshi Road), and the road network of the New Logistics and Storage Zone, and is composed of Xinshi, Xinqunan and Xinquzhong Roads, with a total length of about 7.37km. Total investment of the project is CNY154,196,500, in which USD 11 million loaned by ADB. The project involves 266.68 mu land to be acquired in Dongbao Village, Fenghaogou Village, Anshang Village, and Wujiayuan Village; 1294.21 square meters housing to be demolished with 1341 persons in 369 households to be affected. 3.1.2 Project Procedure and Resettlement Implementation In December 2008, the pilot development project of ADB loans to small towns in Shanxi Xinghuacun town area road network transformation project proposal got the approval of Shanxi Province Development and Reform Commission, issued JFGWZF [2008] No. 1458. In April 2009, the pilot development project of ADB loans to small towns in Shanxi Xinghuacun Town Regional Road Network Improvement Project Environmental Assessment Report Form got the approval of Environmental Protection Bureau of Shanxi Province, issued JHA [2009] No. 355. In July 2009, the ADB loaned small towns pilot development project Xinghuacun town area road network transformation project in Shanxi Province got the land use pre-approval of Shanxi Provincial Department, issued JGTZH [2009] No. 377. The land use certificate is being processed. In September 2009, the pilot development project of ADB loans to small towns in Shanxi Xinghuacun town area road network renovation project feasibility study report

39 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

(adjusted) got the approval from Shanxi Province Development and Reform Commission, issued JFGWZF [2009] No.1375. In July 2011, the preliminary design of the pilot development project of ADB loans to small towns in Shanxi Xinghuacun town road network renovation project got the approval of Shanxi Province Development and Reform Commission, issued JFGSJF[2011] No. 1024.

Figure 3-1 Latest Road Level Off Site of Road Network Transformation Project in Xinghuacun Up to this M&E, for construction, the biding is conducting with no construction work started yet. For resettlement procedure, in Feburary 2009, RP of the subproject got the approval of City, issued FZH[2009] No.21; in October 2011, PMO publicized the LA and HD work with related policies and booklets allocated in each village; in December 2011, the LA was started. Up to now, the land acquisition work has been completed; the land compensation agreement has been signed and compensation cost has been paid to the APs; housing area of the preliminary results of the assessment is being publicized, but, along with factors such as rising prices in recent years, housing demolition compensation standard is still in the process of researching and developing, and has not yet been finalized; housing compensation agreements are signing; compensation funds are not yet paid. Resettlement community is in the construction process, there are rooms from 80 to 120 square meters for households to choose, all of them are brick structure, cast-in-place floor and the stairs, lime plaster for housing wall, water and sediment ash plaster for kitchen and bathroom wall, cement cushion ground, model steel window with screen, install wooden door, heating equipment, fluctuations on upwards and downwards for water, televised dark buried pipe, stairs facilities in good condition. 3.1.3 Monitoring Content The resettlement monitoring inspected the resettlement progress, project impacts, compensation standards, funding and the use, public participation, complaint, appeals

40 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank and so on. Problems are uncovered and recommendations are provided. 3.2 Resettlement Implementation 3.2.1 Project Impact The project affects 4 administrative villages, which are Dongbao Village, Fenghaogou Village, Anshang Village and Wujiayuan Village. It directly affects 369 households, including 362 households affected by LA and 7 households affected by HD. It involves 266.68 mu rural collective owned land to be acquired; 895.39 square meters residential housing to be demolished; 398.82 square meters enterprise or agency owned housing to be demolished; 8 categories of special facilities and ground attachments to be affected; 89 vulnerable persons in 29households to be involved. Up to be M&E, there is no change between the actual resettlement impact and the RP; land acquisition has been finished; up to Dec. 2012, the committee of Fenghaogou Village in Xinghuacun Town Fenyang City received compensation for land acquisition 3,380,010 Yuan in total,committee of Dongbao Village received compensation for land acquisition 5,051,487 Yuan in total. So far, relative compensation fees have not been paid to the affected farmers. Land compensation fee has been paid; house demolition work has not started; resettlement compensation fee has not been paid. 3.2.2 Standards and the Implementation for Land Acquisition Compensation According to the requirements of the Notice of the Implementation of Provincial Unified Annual Output Value in Shanxi Province (JZF [2009] No.38), Fenyan Land Bureau has compiled unified standard of annual output value for land acquisition. In accordance with section division table of land categories, the project-involved villages in Xinghuacun Town belong to Pingchuan District. The annual output value is CNY 1242 per mu. For land compensation, it is 9 multiple of annual output value. For resettlement subsidy, it is 16 multiple of annual output value. For young crop compensation, it is 1 multiple of annual output value. Therefore, the total compensation is CNY 32,292 per mu. Up to this M&E, compared with RP, the compensation standard and rate were not changed; it was in line with RP. In addition, land acquisition work has been finished with all land compensation fee paid to households. 3.2.3 Standards and the Implementation for Housing Demolition Up to now, the number of actual affected households is same as that of immigration plan, and the number did not change. But, along with factors such as rising prices in recent years, housing demolition compensation standard is still in the process of researching and developing, and has not yet been finalized; housing compensation agreements are signing; compensation funds are not yet paid. Resettlement community is in the construction process, there are rooms from 80 to 120 square meters for households to choose, all of them are brick structure, cast-in-place floor and the stairs, lime plaster for housing wall, water and sediment ash plaster for kitchen and bathroom wall, cement cushion ground, model steel window with screen, install wooden door, heating equipment, fluctuations on upwards and downwards for

41 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank water, televised dark buried pipe, stairs facilities in good condition.

Figure 3-2 Construction Area of Resettlement Residential of Road Network Transformation Project

in Xinghuacun

3.3 Resettlement Implementation Institution and Its Capacity 3.3.1 Resettlement Implementation Institution In order to carry out this project effectively, Fenyang government at all levels established a resettlement agency network, and, in 2008, set up a leading group of the ADB loaned project. In the group, there is one group leader who is Fenyang deputy mayor; six deputy leaders, including head of Transportation Bureau, head of Financial Bureau, and head of Supervision Bureau; members covering fourteen involved agencies including Development and Reform Bureau, the Municipal Finance Bureau, the Municipal Supervision Bureau, Urban Construction Bureau, City Accounting Office, City Land Resources Bureau, the city Department of Transportation, Municipal Environmental Protection Bureau, the Municipal Bureau of Cultural Relics, Xinghuacun town and the affected villages' committees. At the same time, in the group, it has been set one office and five working groups to implement specific work. See main members in the table below:

42 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 3-1 PMO Staff

Agency Name Unit Position Position in PMO Han Government at Guidance team Deputy mayor Team leader Xueyao city level Transportation Guidance office Liang Keyi bureau at city Bureau leader Director level Xinghuacun Song Township PMO town Town leader Director Yaobin government Xinghuacun Deputy town Complex team Han Zhiwei town Deputy director leader government Transportation Technical team Liang Keyi bureau at city Bureau leader Director level Supervision Resettlement and Liu Yidong bureau at city Bureau leader Director coordination team level Zhang Financial bureau Financial team Bureau leader Director Dongbiao at city level Village Wang Dongbao village Dongbao PMO committee Member Jinlong committee secretary Fenghaogou Village Feng Fenghaogou PMO village committee Member Qiquan committee secretary Village Anshang village Anshang PMO Wu Litang committee Member committee secretary Wujiayuan Village Wujiayuan PMO Wu Zhenli village committee Member committee secretary 3.3.2 Institute Capacity Xinghuacun Town PMO is self-contained and has advanced transportation and communication equipment. In order to guarantee the smooth implementation of resettlement the PMO arranges specific person with good quality and ability and more than two years‟ experiences in resettlement for resettlement work. At the same time, they set up internal monitoring system and there is person specially assigned for the work. 3.4 Typical Investigation of Affected Villages The affected villages include 4 administrative villages in Xinghuacun town, which are

43 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Dongbao Village, Fenghaogou Village, Anshang Village, and Wujiayuan Village. Among which, Fenghaogou village has been affected mostly by land acquisition and house demolition. Therefore, in Aug. 2013, external M&E team conducted a typical survey and in-depth interviews in the village. Table 3-2Interview in typical village Interview Time: 2013-8-2 Place: Fenghaogou Village Interviewee: President Feng of Fenghaogou Village There are more than 2,300 MU land in the village, among them more than 1,150 MU is dry land. Now the population is lager than 1,100. The project involves 126MU land of the village, among them, 17 Mu is village collect-owned land, as well as field road, more than 300 families are affected; the income of almost every family in the village is affected more or less. The affected villagers can work in the Fenjiu Factory nearby, work or do business outside, and the land income is no longer the main income of the family. President Feng said that there was no corporate relocation involved, placement fees will be amount retained by the collective about 20%, the money will be used to the construction of infrastructure, such as roads. The project is a project make benefit to people, especially to relocation households who relocated in the new community, the quality of their houses and livelihoods of affected people can be improved significantly.

3.5 Investigation and Analysis of APs' Productive and Living Standard In this M&E, it has investigated 53 households in Dongbao Village, Fenghaogou Village, Anshang Village, Wujiahuan Village in Xinghuacun Town who are affected by land acquisition by sampling questionnaire. The main content includes household population, household annual income and cost, etc. 3.5.1 Household Population (1) Household Population Structure According to the investigation, there are 211 persons in the 53 households, all of them are agricultural population; investigated with 94 women, taking up 45.02% of the whole; 161 labors, taking up 76.3% of the whole; 28 supporting/elder people, taking up 13.27% of the whole; 33 schooling children, taking up 15.64% of the whole. See the structure of household population and age sections in Table below.

44 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 3-3Sample household Population Structure

No. Name Agricultural Non-agricultural Raising/Disabled/Older Population Female Labors Students Population Population Population

1 HJF 2 2 0 2 2 0 1

2 ZRY 4 4 0 4 4 0 0

3 QYB 5 5 0 5 5 0 1

4 HLH 5 5 0 3 3 1 1

5 WJY 6 6 0 5 5 1 0

6 LJG 6 6 0 4 4 2 0

7 HBL 3 3 0 1 1 2 0

8 YJS 4 4 0 2 2 3 2

9 LDY 2 2 0 0 0 2 0

10 YZW 5 5 0 4 4 0 1

11 JCL 5 5 0 5 5 0 0

2 DTH 4 4 0 3 3 0 1

13 YCS 5 5 0 5 5 0 0

14 RDH 4 4 0 4 4 0 0

15 HBJ 2 2 0 0 0 2 0

45 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

16 HDG 6 6 0 5 5 0 1

17 GYD 4 4 0 2 2 2 0

18 HFQ 4 4 0 3 3 0 1

19 LGY 2 2 0 2 2 0 0

20 WDL 4 4 0 2 2 0 2

21 LFH 5 5 0 4 4 0 1

22 ZXJ 4 4 0 2 2 0 2

23 LZL 2 2 0 2 2 0 0

24 ZZD 5 5 0 3 3 2 1

25 LHM 4 4 0 3 2 0 2

26 ZYS 3 3 0 3 3 0 0

27 ZGL 3 3 0 3 3 0 0

28 HDC 6 6 0 6 6 0 0

29 HXL 3 3 0 1 1 2 0

30 ZZC 3 3 0 2 2 1 0

31 ZYG 3 3 0 3 2 0 1

32 WEY 3 3 0 3 3 0 0

46 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

33 LHS 2 2 0 2 2 0 0

34 GYS 4 4 0 4 4 0 0

35 LJY 4 4 0 4 4 0 0

36 LJG 5 5 0 4 4 0 1

37 HXQ 3 3 0 3 3 0 0

38 JYD 4 4 0 4 4 0 0

39 YCS 5 5 0 5 5 0 0

40 LLW 6 6 0 4 4 2 0

41 RGL 8 8 0 6 6 0 2

42 LSY 3 3 0 1 1 2 0

43 CJS 4 4 0 2 2 0 2

44 HBX 4 4 0 3 3 0 1

45 CGJ 3 3 0 3 3 0 0

46 LYC 4 4 0 3 2 0 2

47 GAL 4 4 0 3 2 0 2

48 ZBS 4 4 0 2 2 2 0

49 LJW 2 2 0 2 2 0 0

47 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

50 HBC 5 5 0 2 2 2 1

51 YDG 5 5 0 4 4 0 1

52 HTS 4 4 0 2 2 0 2

53 GCG 2 2 0 2 2 0 1

Total 211 211 0 94 161 28 33 Ratio 100% 100% 0 44.55% 76.30% 13.27% 15.64%

48 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

(2) Age For the investigated 53 households and 211 APs, there are 19 persons aged lower than 16, taking up 9.00%; 119 persons aged between 17 and 50, taking up 56.40%; 38 persons aged between 51 and 59, taking up 18.01%; 35 persons aged higher than 60, taking up 16.59%. See age structure in Table below. Table 3-4List of Age Structure

Age Group Population Ratio ≤16 19 9.00% 17~50 119 56.40% 51~60 38 18.01% ≥60 35 16.59% (3) Education For the investigated 53 households and 211 APs, there are 10 persons as Illiteracy, taking up 4.73%; 57 persons received primary school education, taking up 27.01%; 98 persons received junior middle school education, taking up 46.45%; 40 persons received senior middle school education, taking up 18.96%; 6 persons received education above senior middle school level, taking up 2.84%. Table 3-5List of Education

Educational Level Population Ratio Illiteracy 10 4.74% Primary School Education 57 27.01% Junior Middle School Education 98 46.45% Senior Middle School Education 40 18.96% Above Senior Middle School 6 2.84% Education 3.5.2 The Production and Operation Situation By investigation, for the investigated 53 households, there are contracted lands 505.03 Mu, about 9.53Mu for each household, and about 2.39 Mu for each person. And there are about 65.4 Mu land requisites by LA. After LA, there are 8.29Mu per household, decrease by 1.24Mu, 2.08Mu per capita, decrease by 0.31Mu. Known by investigation, investigated households mainly planted sorghum and maize, a season per year. Due to reasons such as lack of climate, water conservancy condition, yield is not high. 3.5.3 Main Properties of households According to this M&E, diffusion rates of TV, washing machine, fixed telephone, mobile phone are comparatively higher, while diffusion rates of vacuum cleaners, solar energy and smoke lampblack machine lower, fitting local level of production. It is consistent with local production level and the actual demand of life. See details of properties of households investigated in Table below. Table 3-6List of Main Properties

Item Unit Amount Household Ownership

49 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Auto cars Platform 26 47.17% Motorcycle Platform 51 96.23% Tractor Platform 13 15.09% Fixed telephone Set 50 94.34% TV Set 64 120.75% Washing machine Set 53 100% DVD/VCD Set 17 15.09% Tape-recorder Set 3 1.89% Camera Set 19 35.85% Water heater / solar Set 20 18.9% water heater Smoke lampblack Set 21 33.96% machine Microwave oven Set 11 16.98% Vacuum cleaner Set 15 7.55% Air conditioning Set 17 24.53% Mobile phone Set 141 266.04% 3.5.4 Housing Built-up Area and Living Conditions By this investigation, for the investigated 53 households housing and living conditions are listed in two tables below. Table 3-7List of Housing Area

Housing Area（m2） Homestead Area Item Rooms Brick-co Brick-wo Earth-w (m2） Simple Total ncrete od ood

Total 228 18974 8675 431 0 382 9488

Per 4.3 358 163.68 8.13 0 7.21 179.02 household Per Capita 1.08 89.92 41.11 2.04 0 1.81 44.96

Ratio 91.43% 4.54% 0 4.03% 100%

Table 3-8List of Living Condition

Actual Condition Living Condition Satisfied Unsatisfied Ratio of Satisfaction households households Separate bathroom 53 0 100% Separate kitchen 53 0 100% Power supply 53 0 100% Tap-water 53 0 100% Cable television 48 5 90.57% Broadband network 47 6 88.70% Dewatering condition 50 3 94.34% Light condition 52 1 98.11%

50 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

3.5.5 Household Yearly Income (1) Household Income Source According to the investigation, the 211 households' income sources in 2012 were as following: agricultural income accounts for 9.94% of total household income; sideline income accounts for 13.94% of total household income; individual business income accounts for 11.20% of total household income; wages income accounts for 56.12% of total household income; work outside income accounts for 8.80% of total household income. See details of properties of households investigated in Table below. Table 3-9List of household Income Source

Annual Income per household Income Item Total Income (CNY) Ratio in 2011 (CNY) Agricultural Income 222,087.49 4,190.33 9.94% Sideline income 311,635.76 5,879.92 13.94% Wages income 250,219.89 4,721.13 11.20% Work outside income 1,254,306.48 23,666.16 56.12% Other income 196,683.53 3,711.01 8.80% Total 2,234,933.15 42,168.55 100%

Figure 3-3Household Income Source (2) Household Income Level According to the investigation, total yearly income of the 53 households was CNY 1,743,614.14; with CNY 32,898.38 per household; with CNY 8,263.57 per capita. Among them, agricultural income was CNY 4,320.17 per household; sideline income was CNY 2,179.91 per household; wages income was CNY 3,021.13 per household; work outside income was CNY 19,666.16 per household; other income was CNY 1,711.01 per household. See details of properties of households investigated in Table below. Table 3-10List of household Income Level

51 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Per household Income Per Capita Income Income Item Total Income (CNY) (CNY) (CNY) Agricultural Income 218,369.01 4,120.17 1,034.92 Sideline income 189,735.23 3,579.91 899.22 Individual business income 260,851.69 4,921.73 1,236.26 Wages income 1,096,119.5 20,681.5 5,194.88 Work outside income 196,699.96 3,711.32 932.23 Other income 1,961,775.39 37,014.63 9,297.51 Total 218,369.01 4,120.17 1,034.92 As can be seen from the above analysis, the main source of income for local farmers to work in the main, the enterprise income of the total household income is the second, agricultural income in household income in the third. 3.5.6 Household Yearly Cost (1) Household Cost Structure According to the investigation, the 53 households‟ cost in 2012 was CNY 15,079.06, and the cost distribution was as following: procedure of seeds accounts for 1.93%; procedure of pesticides and fertilizers accounts for 3.73% of total cost; mechanical Operating Cost accounts for 1.26% of total cost; living power and water cost accounts for 2.35% of total cost; fuel cost accounts for 13.61% of total cost; communication cost accounts for 2.79% of total cost; traffic and fuel cost accounts for 3.39% of total cost; education cost accounts for 5.48% of total cost; medical cost accounts for 5.37% of total cost; food cost accounts for 43.86% of total cost; clothes cost accounts for 12.75% of total cost; other cost accounts for 6.23% of total cost. Table 3-11List of household Cost Structure

Item Total Cost (CNY) Ratio Seeds 14,310.00 1.93% Pesticides and Fertilizers 27,617.77 3.73% Irrigation Water Cost 4,651.28 0.63% Mechanical Operating Cost 9,339.66 1.26% Living Power and Water Cost 17,437.00 2.35% Fuel Cost 20,668.41 2.79% Communication Cost 40,609.13 5.48% Traffic and Fuel Cost 39,803.00 5.37% Education Cost 100,792.22 13.61% Medical Cost 324,853.96 43.86% Food Cost 94,457.13 12.75% Clothes Cost 46,110.00 6.23% Basic Necessities Cost 740,649.56 100.00% Other Cost 14,310.00 1.93% Total 27,617.77 3.73%

52 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Figure 3-4household Cost Structure (2) Household Cost Level According to the investigation, the 53 households‟ cost in 2012 was total yearly cost of the 53 households was CNY 740,649.56; with CNY 13,974.52 per household; with CNY 3,510.19 per capita. Among them, for per capita, procedure of seeds was CNY 67.82; procedure of pesticides and fertilizers was CNY 130.89 of total cost; mechanical operating cost was CNY 44.26of total cost; living power and water cost was CNY 82.64 of total cost; fuel cost was CNY 4,320.54 of total cost; communication cost was CNY 97.95 of total cost; traffic and fuel cost was CNY 477.69 of total cost; education cost was CNY 192.46 of total cost; medical cost was CNY 188.64 of total cost; food cost was CNY 1,539.59 of total cost; clothes cost was CNY 447.66 of total cost; other cost was CNY 218.53 of total cost. Table 3-12List of household Cost Level

Total annual cost Annual cost per Annual cost per Item (CNY) household (CNY) capita (CNY) Seeds 14,310.00 270.00 67.82 Pesticides and Fertilizers 27,617.77 521.09 130.89 Irrigation Water Cost 4,651.28 87.76 22.04 Mechanical Operating Cost 9,339.66 176.22 44.26 Living Power and Water Cost 17,437.00 329.00 82.64 Communication Cost 20,668.41 389.97 97.95 Education Cost 40,609.13 766.21 192.46 Medical Cost 39,803.00 751.00 188.64 Fuel Cost 100,792.22 1,901.74 477.69 Food Cost 324,853.96 6,129.32 1,539.59 Clothes Cost 94,457.13 1,782.21 447.66 Other Cost 46,110.00 870.00 218.53 Total 740,649.56 13,974.52 3,510.19

53 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

From the analysis above, the 53 households‟ cost in 2012 was CNY 3510.19 per capita. Food cost, fuel cost, clothes cost and other cost are the main costs, while transport cost and living power and water cost is small, and all these are accord with the local living condition. 3.5.7 Comparative Analysis between Annual Household Income and costs The results can be analyzed according to the following table: for the investigated 53 affected households, the balance between income and cost at end of the year is CNY 1,221,125.83; household year-end balances income is CNY 23,040.11; APs net income is CNY 8,032.49 per capita. For income source, the main ways are private self-business income, wage income and outside employment income. Agricultural income accounts for a small proportion It also conforms to the actual situation of developing tourism and the individual industrial and commercial enterprises as the leading industry. For cost, the main parts are food cost, clothing cost and basic necessities cost. It is in accordance with actual demand, and it is predictable, in feature years, the income and cost structure will not change a lot. LA will affect famers to some extent, use LA compensation reasonably and effectively, seek viable alternative income, can effectively guarantee the income of resettlement will not affected because of LA, then benefit from the project. Table 3-13Household Income and costs

Total Yearly cost (CNY) Balance (CNY) Annual average Annual per Total Yearly Household household capita net Productive Living Total Income (CNY) average net income cost cost balance balance household (CNY) income (CNY) 1,221,12 1,961,775.39 55,918.71 684,730.85 23,040.11 35,959.56 8,032.49 5.83 3.5.8 Analysis of Changes in Net income According to the investigation, the 53 households‟ annual productive cost in 2012 was CNY 3,510.17 per capita, and decrease by CNY 277.46 compare with CNY 3,787.63 per capita in last M&E. Among them, procedure of seeds was CNY 67.82, accounts for 1.93% of the total, decrease by 0.45% compare with that in last M&E; procedure of pesticides and fertilizers was CNY 130.89 of total cost, accounts for 3.73% of the total, decrease by 1.96% compare with that in last M&E; irrigation Water Cost was CNY 22.04 of total cost, accounts for 0.63% of the total, no change compare with that in last M&E; productive cost was CNY 265.01 of total cost, accounts for 7.55% of the total, decrease by 2.80% compare with that in last M&E. At the same time, the annual living cost per capita was: living power and water cost was CNY 82.64 of total cost accounts for 2.35% of the total, increase by 5.34% compare with that in last M&E; fuel cost was CNY 477.69 of total cost accounts for 13.61% of the total, decrease by 9.52% compare with that in last M&E; communication cost was CNY 97.95 of total cost accounts for 2.79% of the total, no change compare with that in last M&E; education cost was CNY 192.46 of total cost

54 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank accounts for 5.48% of the total, no change compare with that in last M&E; medical cost was CNY 188.64 of total cost accounts for 5.37% of the total, decrease by 7.40% compare with that in last M&E; food cost was CNY 1539.59 of total cost accounts for 43.86% of the total, decrease by 9.72% compare with that in last M&E; clothes cost was CNY 447.66 of total cost accounts for 12.75% of the total, decrease by 10.09% compare with that in last M&E; other cost was CNY 218.53 of total cost accounts for 6.23 of the total, decrease by 3.33% compare with that in last M&E. Living cost was CNY 3245.16 of total cost, accounts for 92.44% of the total, decrease by 8.06% compare with that in last M&E. In last M&E, annual average net income per capita of affected household was YNC 7,005.78; in this M&E, it was YNC 8,032.49, and increase by 14.46%. After LA, farmers have more free time to work or to develop a sideline, and in Xinghuacun, the tourism develops fast, which drives the transformation of resettlement income structure. Now the resettlements are in the transition period, adapt to the transition to the non-agricultural gradually, although their income did not increase a lot in 2012, after the investment of the early stage, living standards of the late stage will change quickly. So, LA almost has no effect on basic living standards of resettlements. Table 3-14 The Change of Income Structure before and after Land Acquisition and Resettlement

Annual Income per household in Annual Income per household in

2011 (CNY) 2012 (CNY) Agricultural Income 4,320.17 4,120.17 Sideline income 2,179.91 3,579.91 Individual business income 19,666.16 20,681.5 Wages income 3,021.13 4,921.73 Other income 1,711.01 3,711.32

Figure 3-5Income Structure before and after LA

55 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

3.6 Vulnerable Groups The project totally influence 29 households 89 people who are vulnerable, including 9 households under minimum living guarantee, 2 households as single parent families, 4 households headed by women, 6 households of the elderly, 5 households involving disabled persons, 3 households having long-term patients. Restoration measures for the vulnerable groups are mainly the following two kinds: The first one is One-paid resettlement subsidies: in RP, make the budget according to the standard of CNY1221 per capita, in the form of cash paid directly to these vulnerable groups. Subsidy standards and issuing object will be in accordance with national policy, final project approval amount and ultimately determine the number of vulnerable groups and make appropriate adjustment, prior to release for publicity. The second one is sustainable support measure: providing separate and confidential counseling; to provide the lowest social security and Medicare; to provide the elderly (home without laborer) extra allowance; to provide disabled persons with suitable jobs; female single-parent family labor for employment; to vulnerable groups to provide small loans, and to give priority to employment; priority access to all other to mitigate the adverse effect and development help. Table 3-15Support Measure for the Poor and Vulnerable people

Type Subsidy/ Policy Standard payment Means Subsistence allowances/ Grant Subsistence CNY 45 per Cash, Living Five allowances and subsidies month*person supplies Guarantees/ poor families Woman-head Arrange the employment, Cash household tax free, grant allowance Elderly Basic endowment CNY 45 per Cash, Living households insurance, allowance month*person supplies Disabled Arrange the employment, Cash households tax free, grant allowance According to the households with Medical insurance, medical standard of Reimbursement, patient of major assistance, arrange the departments of medical cash, living disease employment, allowance insurance and civil supplies affairs According to the monitoring data, by taking these measures, effectively restore and helping vulnerable groups, their living standard has been improved to some extent. Up to this M&E, original life level and quality was not reduced because of the construction of the project, and the overall recovery is in good condition. 3.7 Public Participation Public participation is the guarantee of the Resettlement Implementation of the important factors. In the project feasibility research and resettlement-planning phase, project unit carried out a series of activities involved in the project to make the

56 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

immigration. Up to this monitoring, Fenyang city in the implementation of Land Acquisition Institution affected towns, villages were carried out several immigrant forum and villager congress, to the construction of the project scope, project content, effect and relevant compensation and resettlement policy on affected immigrants were propaganda and explanation, and a more in-depth communication; at the same time, criteria for compensation and resettlement mode determination carried out extensive exchanges, in these aspects and sufficient for migrants views. At the same time of asking APs for suggestions, project unit also invited some people not influenced to attend the forum to hear about their opinions and advices on APs resettlement of the project. Through various activities of public participation, residents in project area have a full realization of the significance of the project construction and the coming help measures. They hope the project construction can be carried out as soon as possible to achieve the obvious benefits of promoting local economic and social development. Table 3-16Public participation Participation Participation Participation Participation Way Participation Content Time Subject Frequency Determining the loss influence, Affected villages economic information of the 2008.3~2011.3 Representatives of Symposium 4 affected villages; collecting the APs APs’ concern and demand Investigation of APs by family mode, education degree, ethnic 2008.3~2009.2 APs Questionnaire investigation 3 composition, family property income and expenditure, etc Affected villages, 2008.3~2009.3 villager congress 4 Explaining the policy of this project APs Affected villages, 2009.2~2009.3 Symposium 2 Seeking advice for RP APs Affected villages, Villager congress Seeking advice for compensation 2011.3~2011.5 2 APs Symposium rate Seeking advice for compensation Affected villages, Villager congress 2012.6~2012.11 3 rate about compensation and APs Symposium resettlement for housing demolition 3.8 Grievance and Appeal The transparent, effective channel of grievance and appeal were set up in the project planning and implementation process. PMO told the channel to APs by holding meetings. This let APs know their rights of grievance and appeal well. The channel was unblocked. The hotline is 0358-7222228. 3.9 Conclusions and Suggestions 3.9.1 Conclusions (1) Up to this monitoring, the project was progressing smoothly, with which the land

57 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank pre-trial and preliminary design approved, and the preparation of tender documents and land use permit for the work in progress. (2) Up to this monitoring, the land acquisition work has been completed; the land compensation agreement has been signed and compensation cost has been paid to the APs; housing area of the preliminary results of the assessment is being publicized, but, along with factors such as rising prices in recent years, housing demolition compensation standard is still in the process of researching and developing, and has not yet been finalized; housing compensation agreements are signing; compensation funds are not yet paid. (3) The project institutions, personnel and technical level and working ability to meet the requirements, but also set up a special project headquarters and project office. This project resettlement work by the Fenyang City Department of transportation and coordination, the town government and the affected village is responsible for the concrete implementation, and implement the internal monitoring, external independent monitoring performed by NRCR of Hohai University. (4) Compensation standard for land acquisition is reasonable and legitimate, the survey found, affected people generally satisfied with. (5) During project preparation and implementation period, the project unit is physical quantity measurement, standard of compensation, compensation funds to pay the affected households concern several organizations of the public participation in the activity, answer to public my doubts, and the affected people are fully aware of the commonweal sex project construction necessity and importance, this project resettlement work laid the foundation for the smooth development. (6) Resettlement complaints and complaint channels, set up a complaint full-time coordinator system, immigration know when their rights were violated when means of appeal. 3.9.2 Suggestions (1) Accelerate the processing of land expropriation procedures and the land use certificate. According to the national related policy, the land levies must follow a strict process management expropriation procedure. Therefore, proposed to speed up land expropriation procedures, so that the land-use legalization, thereby providing smooth completion of expropriation and demolition work and the following civil engineering for the smooth implementation of the legal protection. (2) Speed up the decision-making work of standard of compensation and resettlement for housing demolition. Sign agreement of compensation for housing demolition as soon as possible. Arrange enough compensation for housing demolition and government matching funds for the construction of resettlement community. Accomplish the relocation as soon as possible. (3) Continue to strengthen capacity building of institutions, relevant institutions and personnel recommendations for further study of ADB immigration policy and the implementation of training, using the theories of learning and the exchange of visits of combining form, especially to have implemented or are implementing ADB loan project research, learning, in order to further strengthen the organization efficiency and ability. At the same time, it is necessary to perfect the cost of the institutional

58 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank capacity building, improve the enthusiasm of the resettlement staff. (4) Strengthen resettlement documents filing work. Attention should be paid to the preservation of resettlement in the process of related materials, establish land demolition records, for project completion acceptance and monitoring and evaluation provide basic information. (5) Suggest doing good internal monitoring work, updating internal monitoring report, and making the project schedule and resettlement progress tracking.

4 Youyu County Project

4.1 Project Background 4.1.1 Review of Resettlement Plan In order to speed up the pace of Youyu county‟s urban infrastructure construction, improve the residents living environment, promote tourism reception ability, for the investment create a good external conditions, for local residents provide more employment opportunities, so as to promote the Youyu county‟s economic development, Youyu county people's government plans to to implement "Shanxi province, Youyu county small cities and towns construction demonstration projects" with partly of the ADB‟s loans. Youyu County‟s development and reform bureau is responsible for the project; Youyu County‟s ADB loaned small cities and towns construction project leadership group (comprises offices) develops supervisory function. This SCTCP including centralized Heat-Supply projects, water supply and drainage engineering, road engineering, flood control engineering four parts. Among them: (1) the centralized Heat-Supply engineering design to add heating area 1500km², mainly construction content 1 seat boiler room, 12 seats heat exchanger station, a heat-supply network 9.1km; (2) water supply and drainage project including 2 new deep-well of water source, 32.64 km water supply network of the whole-range construction and renovation, 14.9km assort network of the present water factory „s expansion and county rainwater, 13.1km county‟s wastewater-support network, (3) road projects include horizontal four street, horizontal six street, horizontal nine street, longitudinal five road, longitudinal six road, longitudinal seven road, longitudinal eight road ,together 7 main and sub-roads in county „s new district, the total length is 10.14km (4) The flood control channel is 4.85km together, mainly construction content dredging engineering, channel bottom foundation and structural layer building, channel wall building. This project heat-supply projects, road engineering, flood control project should acqusite 494 mu rural collective land altogether, influence 3 administrative villages, a total of 116 households, 454 persons. Water supply and drainage engineering combine the planning and present road construction, so does not involve acqusition and demolition. The resettlement arrangement fees of this project estimate is 24.8116 million yuan, including land acquisition compensation 10.1479 million yuan, other costs 0.8012 million yuan, the related taxes 1202.47 million yuan, prepared fees 1.8379 million

59 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank yuan. 4.1.2 Project Progress and Resettlement Implementation At present, only heating project began the resettlement work with the rest four at preliminary design stage. In 2009, the county the new integrated residential building in Beaihuan area had been built and was badly in need of ancillary heating facilities. In order to meet the needs of residential heating, county of ADB Loan Project Office of infrastructure of small cities and towns to raise funds about CNY forty million on its own. Shanxi Yulong Investment Group Limited investment takes the charge of the construction. For land resettlement process, it was still in accordance with the ADB resettlement requirements. The construction permanently acquired rural collective land of about 25 mu in Maguantun Village with 6 households 35 persons affected.

Figure 4-1Youyu Integrated Heating Plant Site

60 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Figure 4-2Boiler installation location of Youyu Integrated Heating Construction Up to this M&E, in May 2009, Municipal Bureau of land resources issued the land approval, and in 14th Aug. 2010 gained the land use certificate, however, the land use certificate has not been issued yet. Initial design of heating construction, in May 3, 2011, got the approval from Shanxi provincial development and Reform Commission, issued as JFGSJF [2011] No.543. 4.1.3 Monitoring Content The resettlement monitoring inspected the heat supply project: resettlement progress, project impacts, compensation standards, funding and the use, public participation, complaint, appeals and so on. Problems are uncovered and recommendations are provided. 4.2 Resettlement Implementation 4.2.1 Project Impact The project of heating engineering, road engineering, flood control engineering need to acquire rural collective land 494 mu, affecting Youfang village village, Maguantun village and Zhangjiadian village. It will totally affect 116 households 454 people.Water supply and drainage engineering in combination with planning and status quo of road construction, so it does not involve land demolition. The monitoring discover, at present, it has completed the heating engineering all 25 mu permanent land acquisition, which decreased 33.6 mu comparing the RP. The reason is mainly the design optimization with consideration to minimize syndrome and other works. The resettlement work has not been started yet. This project does not involve the demolition of housing; not involve minority, poor family, the disabled or other vulnerable groups. 4.2.2 LA Compensation Standards and the Implementation LA of heating construction affects Maguantun Village. According to Document [2007] No.193 issued by Department of land and resources of Shanxi Province, land bureau of Youyu County had compiled the unified annual output value for LA. For the land to be acquired, it followed the compensation standard of hilling area(land section III) which is CNY 9288 per mu. Among which, the annual output value was CNY 516 per mu; land compensation was 7 multiples of the value; resettlement subsidy was 11 multiples of the value. Then, after village committee and villagers held a villager congress, which reached an agreement. The compensation standard increased to CNY11200 per mu. For this one, the output value was CNY800 per mu; land compensation was 9 multiples of the value; resettlement subsidy was 5 multiples of the value. See the detailed change in appendix 1. Up to this M&E, land acquisition work has been finished with all land compensation fee paid to households. 4.3 Resettlement Implementation Institution and Its Capacity 4.3.1 Resettlement Implementation Institution In order to ensure the successful implementation of the land acquisition and resettlement and the achievement of the planned results, Youyu County Sub-Project

61 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Management Office (SPMO) appoints two persons to take charge of the resettlement and the concerned organizing and coordinating work. One person in Youyu County Land and Resources Bureau is in charge of the implementation of the land acquisition and resettlement. In 2007, Youyu County government set up a project leading group to prepare for the project and coordinate the implementation process. The vice county head assumed the position of group leader. The group consists of leaders from Development and Reform Bureau, Land and Resources Bureau, Financial Bureau and Construction Bureau, Its subordinate is Youyu County Sub-Project Management Office (SPMO) which is located in Youyu County Development and Reform Bureau. This office is mainly in charge of the project preparation, organizing and coordinating, implementation and management, and so on. Found during the process of monitoring, in the implementation structure, mobility of workers is fast and very few people familiar with the business content. Project resettlement implementation institutions see table below. Table 4-1Youyu County Sub-project Resettlement Implementation Institution

Institution Staff Organization Position Telephone Hao Youyu County Deputy director SPMO 13037044899 Wanchegn Construction Bureau general Youyu County Land and Deputy director SPMO Li Jiliang 13037042838 Resources Bureau general 4.3.2 Institute Capacity The Youyu PMO is self-contained and has advanced transportation and communication equipment. In order to guarantee the smooth implementation of resettlement the company arranges specific person with good quality and ability and more than two years‟ experiences in resettlement for resettlement work. At the same time, they set up internal monitoring system and there is person specially assigned for the work. 4.4 Typical Investigation The project land acquisition affects Maguantun Village of the new town. In Jul. 2013, resettlement external monitoring team conducted interviews in the village. Table 4-2Interview in affected village by Youyu heating Subproject Interview Time: 2013-7-31 Place: Maguantun Village Interviewee: Wang Run-hua Villager Wang Run-hua Villager is 50 year old and her husband Li Jian-guo is 55 year old. In her family, there are 4 people, more than 20 Mu farmland planted maize and yam mainly, yield per Mu for maize is 500 to 600 catty, yield per Mu for yam is more than 1,000 catty. In addition, Li would do some work nearby as a casual laborer, such as in term of construction, average income per day is 100 to 150 Yuan, and near Maguantun Village, there are several factories, like vegetable factory, which can

62 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

provide some jobs. The family mainly pay for the education fee for her son, and in addition, they will pay medical fee about 300 to 500 Yuan every half year, but Rural Cooperative Medical Service will reimburse 80%. At ordinary times, Wang would grow some vegetables in their yard, and these can meet their everyday needs. Maguantun village has 142 families with a total population of 512 people, per capita arable land area of 60,000 Mu. Land is basically dry land, harvest unstable, but not much income. Less the village relying solely on agricultural production and income of the villagers, most of the workforce is engaged in business, work, and services, these revenues accounted for larger proportion of household income. Land acquisition for the project, the village and the villagers are more support because of land acquisition has little effect on the villagers; agricultural income is not high at the same time, the land acquisition compensation after land acquisition villagers can be used to engage in other investment, and thus get a better income. The construction of this project is a Huimin engineering, and land acquisition and the family income of the villagers nothing bad, so the villagers are to support the construction of this project. Contact information: 0349-8063105 4.5 Investigation and Analysis of APs' Productive and Living Standard In this M&E, it has investigated six households in Maguantun Village, Xincheng Town, who are affected by land acquisition by sampling questionnaire. The main content includes household population, household annual income and cost,etc. 4.5.1 Household Population (1) Household Population Structure According to the investigation, there are 28 persons in the 6 households investigated with 24 registered as agricultural population, 4 registered as no-agricultural population; 16 women, taking up 57.14% of the whole; 17 labors, taking up 60.71% of the whole; 1 supporting/elder people, taking up 3.57% of the whole; 6 schooling children, taking up 21.43% of the whole. See the structure of household population and age sections in table below. Table 4-3Sample household Population Structure

Name Agricultural Non-agricultural Raising/Disabled/Older Population Female Labors Students Population Population Population YHH 3 2 1 2 3 0 1 GM 6 5 1 2 3 1 2 YB 4 3 1 2 3 0 1 LJG 4 4 0 2 1 0 1 YQZ 4 4 0 3 2 0 0 CWB 7 6 1 5 5 0 1 Total 28 24 4 16 17 1 6 Ratio 100% 85.71% 14.29% 57.14% 60.71% 3.57% 21.43% (2) Age For the investigated 6 households and 28 APs, there are 2 persons aged lower than

63 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

16, taking up 7.14%; 23 persons aged between 17 and 50, taking up 82.14%; 2 person aged between 51 and 59, taking up 3.57%; 1 person aged higher than 60, taking up 7.14%. See age structure in table below. Table 4-4List of Age Structure

Age Group Population Ratio ≤16 2 7.14% 17~50 23 82.14% 51~60 2 7.14% ≥60 1 3.57% (3) Education Up to this M&E, for the investigated 6 households and 28 APs, there is 1 persons as Illiteracy, taking up 3.57%; 9 persons received primary school education, taking up 32.14%; 11 persons received junior middle school education, taking up 39.29%; 3 persons received senior middle school education, taking up 10.71%; 4 persons received education above senior middle school level, taking up 14.29%. Table 4-5List of Education

Educational Level Population Ratio Illiteracy 1 3.57% Primary School Education 9 32.14% Junior Middle School Education 11 39.29% Senior Middle School Education 3 10.71% Above Senior Middle School 4 14.29% Education 4.5.2 The Production and Operation Situation By investigation, for the investigated 6 households, there are contracted lands 125 Mu in total and 5.2 Mu for agricultural population per capita. 4.5.3 Main Properties of households According to this M&E, diffusion rates of TV, tractor and mobile phone are comparatively higher while diffusion rates of car and computer lower, fitting local level of production. See details of properties of households investigated in Table 5-8. Table 4-6 List of Main Properties

Ownership rate per Item Unit Total numbers household Bicycle Set 10 166.7% Electric fan Platform 2 33.3% Tape-recorder Platform 2 33.3％ Washing machine Platform 4 66.7% Television Set 9 150％ Computer Set 3 50％ Air conditioning Set 1 16.67% Refrigerator Set 3 50％

64 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Ownership rate per Item Unit Total numbers household Tractor Platform 5 83.3％ Motorcycle Platform 4 66.7％ Auto cars Platform 1 16.67% DVD/VCD Platform 1 16.7％ Fixed telephone Set 4 66.7％ Mobile phone Set 10 166.7％ 4.5.4 Housing Built-up Area and Living Conditions By this investigation, for the investigated 53 households housing and living conditions are listed in two tables below. Table 4-7List of Housing Area

Housing Area（m2） Homestead Area Item Rooms Brick-co Brick-wo Earth-w (m2） Simple Total ncrete od ood

Total 20 726 155 351 200 79 785

Per 3.33 121 25.83 58.5 33.33 13.17 130.17 household Per Capita 0.71 25.03 5.54 12.54 6.9 2.82 27.89

Ratio 19.75% 44.71% 25.48% 10.06% 100%

Table 4-8List of Living Condition

Actual Condition Living Condition Satisfied Unsatisfied Ratio of Satisfaction households households Separate bathroom 6 0 100% Separate kitchen 6 0 100% Power supply 6 0 100% Tap-water 6 0 100% Cable television 6 0 100% Broadband network 4 2 86.67% Dewatering condition 6 0 100% Light condition 6 0 100% 4.5.5 Household Yearly Income (1) Household Income Source According to the investigation, the 6 households' income sources in 2012 were as following: agricultural income accounts for 31.56% of total household income; sideline income accounts for 20.16% of total household income; wages income accounts for 5.44% of total household income; work outside income accounts for 43.33% of total household income. Table 4-9List of household Income Source

65 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Income Item Total Income (CNY) Ratio Agricultural Income 63，637 31.56% Sideline income 40，641 20.16% Wages income 10，976 5.44% Work outside income 87，358 43.33% Total 202，612 100.00%

Figure 4-3household Income Source (2) Household Income Level According to the investigation, total yearly income of the 6 households was CNY 202,612; with CNY 33,768.67 per household; with CNY 33,768.67 per capita. Among them, agricultural income was CNY 10,606.17 per household; sideline income was CNY 6,773.50 per household; wages income was CNY 1,829.33 per household; work outside income was CNY 14,559.67 per household. Table 4-10List of household Income Level

Per household Per Capita Income Income Item Total Income (CNY) Income (CNY) (CNY) Agricultural Income 63,637 10,606.17 2,272.75 Sideline income 40,641 6,773.50 1,451.46 Wages income 10,976 1,829.33 392.00 Work outside income 87,358 14,559.67 3,119.93 Total 202,612 33,768.67 7,236.14 As can be seen from the above analysis, the main source of income for local farmers to work in the main, the wage income of the total household income, agricultural income in household income in the second. 4.5.6 Household Yearly Cost (1) Household Cost Structure Up to this investigation, the investigation six affected immigrant households in the

66 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

2012 family cost structure distributed as follows: agriculture / animal husbandry costs accounted for 8.90% of total household cost; utilities costs as a percentage of total household cost 7.03%; communications costs accounted for 4.45% of total household cost; cost on education accounted for 26.51% of total household cost; medical costs accounted for 26.51% of total household cost; life of non-staple food class spending total household cost ratio of 31.06%; transport costs accounted for 2.17% of total household cost; clothing costs accounted for 12.14% of total household cost; other costs accounted for 3.46% of total household cost. Table 4-11Annual cost Structure

Item Total Yearly Cost (CNY) Ratio Agricultural Production Cost 8,231 8.90% Living Power and Water Cost 6,500 7.03% Communication Cost 4,120 4.45% Education Cost 24,520 26.51% Medical Cost 3,960 4.28% Food Cost 28,731 31.06% Traffic and Fuel Cost 2,010 2.17% Clothes Cost 11,227 12.14% Other Cost 3,205 3.46% Total 92,504 100.00%

Figure 4-4Yearly Cost Structure (2) Household Income and Costs Up to this monitoring, surveyed 6 families in 2012 annual family cost is CNY 92,504, average annual cost is CNY 15,417.33 per capita cost is CNY 3,303.71. Among them, the average agricultural / livestock cost is CNY 1,371.83; household utilities cost is CNY 1,083.33; personal communication cost is CNY686.67; average education cost is CNY 4,086.67, average medical cost is CNY 4,086.67; average life food cost is CNY4,788.50; the average transport cost is CNY 335; household clothing cost is CNY

67 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

1,871.17; all other costs are CNY 534.17.

68 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 4-12Household Costs

Total Yearly Average Cost per Average Cost per Item Cost (CNY) household (CNY) Capita (CNY) Agricultural / livestock Cost 8,231 1,371.83 293.96 Power and Water Cost 6,500 1,083.33 232.14 Communication Cost 4,120 686.67 147.14 Education Cost 24,520 4,086.67 875.71 Medical Cost 3,960 660.00 141.43 Living Food Cost 28,731 4,788.50 1,026.11 Transportation Cost 2,010 335.00 71.79 Clothing Cost 11,227 1,871.17 400.96 Other Cost 3,205 534.17 114.46 Total 92,504 15,417.33 3,303.71 It can be seen from the above analysis, for investigated households, the family expenditure is CNY 3,303.71 per capita in 2012.Food. Living food expenditure, education cost, clothing expenditure and expenditure for agriculture are the main aspects, however, medical cost, transportation cost are smaller parts, and there are the basically in line with local living conditions. 4.5.7 Comparative Analysis between Annual Household Income, and costs According to the analysis of the following table, for the six investigated households, the total balance of payment for year-end balance income CNY 110,108, worth year-end balance income CNY 18,351.33, immigration for CNY 6,112.89 per capita net income. For the source of income, agricultural income and the income of migrant workers is a major source of income for the affected households. On the expenditure side, expenditure on agricultural production, life of non-staple food spending their children's education fees and clothing spending a larger proportion. Affected households, the per capita amount of land tenure, the project land acquisition of 25 acres, before the land acquisition per capita of 5.36 acres, 4.46 acres per person after land acquisition. Not great for Youyu County is located in the alpine region, land quality is not high, yields lower, so the loss of a small amount of land farmers. After land acquisition, affected households can develop sideline production with the compensation. And the same time, along with local economic growth, total income of affected people will increase sustainably. For income source structure, agricultural income reduced, while the income of migrant workers increased. Therefore, the land acquisition did not affect living standard of affected people.

69 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

Table 4-13Household Income and Costs

Total Yearly cost Annual Balance (CNY) Annual (CNY) average Total Yearly per capita household Income Household net Productive Living Total net (CNY) average income cost cost balance household balance (CNY) income (CNY) 202,612 31,451 61,053 110,108 18,351.33 28,526.82 6,112.89 4.5.8 Analysis of Changes in Net income According to the investigation, the 6 households‟ annual productive cost in 2012 was CNY 3303.71 per capita, and increase by CNY 163.57 compare with CNY 3140.14 per capita in basal investigation. Among them, agricultural productive Cost was CNY 456.43, accounts for 13.82% of the total, decrease by 1.45% compare with that in basal investigation; livestock cost was CNY 404.5 of total cost, accounts for 12.24% of the total, decrease by 3.09% compare with that in basal investigation; individual business cost was CNY 262.32 of total cost, accounts for 7.94% of the total, increase by 1.25% compare with that in basal investigation; productive cost was CNY 1123.25 of total cost, accounts for 34% of the total, decrease by 3.29% compare with that in basal investigation. At the same time, the annual living cost per capita was: living water cost was CNY 67.57 of total cost accounts for 2.05 of the total, no change compare with that in basal investigation; living power cost was CNY 91.43 of total cost accounts for 2.77% of the total, decrease by 0.15% compare with that in basal investigation; communication cost was CNY 57.14 of total cost accounts for 1.73% of the total, decrease by 0.20% compare with that in basal investigation; education cost was CNY 296.43 of total cost accounts for 8.97% of the total, increase by 1.01% compare with that in basal investigation; medical cost was CNY 70 of total cost accounts for 2.12% of the total, decrease by 0.04% compare with that in basal investigation; food cost was CNY 693.32 of total cost accounts for 20.99% of the total, increase by 1.75% compare with that in basal investigation; clothes cost was CNY 117.75 of total cost accounts for 3.56% of the total, increase by 0.06% compare with that in basal investigation; transport cost was CNY 105.46 of total cost accounts for 3.19% of the total, decrease by 0.27% compare with that in basal investigation; human contact cost was CNY 180.71 of total cost accounts for 5.47% of the total, decrease by 0.22% compare with that in basal investigation other cost was CNY 500.64 of total cost accounts for 15.15% of the total, increase by 1.05% compare with that in basal investigation. Living cost was CNY 2180.46 of total cost, accounts for 66% of the total, increase by 3.29% compare with that in basal investigation. In 2011, annual average net income per capita of affected household was YNC 4033.96; in 2012, it was YNC 6112.89, and increase by 51.53%. After LA, farmers have more free time to work or to develop a sideline, and with the development of economic in Youyu, total income of resettlements is increasing steadily. It can be seen from the income constitution, although the date of agricultural income is increasing to

70 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank some extent, but its ratio is decreasing, while work outside income increases. So, LA almost has no effect on basic living standards of resettlements. Table 4-14 The Change of Income Structure before and after Land Acquisition and Resettlement

Annual Income per household in Annual Income per household in

2011 (CNY) 2012 (CNY) Agricultural Income 9,605.67 10，606.17 Sideline income 4，606.67 6，773.5 Individual business income 1，162.67 1，829.33 Wages income 12，226.33 14，559.67

Figure 4-5The Change of Income Structure before and after Land Acquisition and Resettlement

4.6 Vulnerable Groups According to the survey, no vulnerable groups such as the poor, the families living under the lowest social security line, the minorities and so on will be involved in the affected persons. 4.7 Public Participation Public participation is important factor to ensure the smooth implementation of resettlement. Land acquisition and resettlement activities should be listen to all social groups, government departments, village and APs views, encouraging the parties to participate in resettlement work. Through baseline survey, the external M&E Agency of NRCR find 3 focus group discussions and 2 face-to–face interviews were held between Norember.2008 and April.2009, involving 63 persons. Affected households were asked to give full suggestion on project construction, scope of land acquisition, contract and compensation of land acquisition, and resettlement. At the same time of asking APs for suggestions, project unit also invited some people not influenced to attend the forum to hear about their opinions and advices on APs resettlement of the project. Through various activities of public participation, residents

71 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank in project area have a full realization of the significance of the project construction and the coming help measures. They hope the project construction can be carried out as soon as possible to achieve the obvious benefits of promoting local economic and social development. 4.8 Grievance and Appeal The transparent, effective channel of grievance and appeal were set up in the project planning and implementation process. PMO told the channel to APs by holding meetings. This let APs know their rights of grievance and appeal well. The channel was unblocked. The hotline is 13903496008. 4.9 Conclusions and Suggestions 4.9.1 Conclusions (1) By the monitoring, YouYu heating project land acquisition work has already been done, with a total of permanent rural collective land acquisition 25 mu. Land compensation has been paid to households. (2) The ADB loan centralized heating engineering the preliminary design has obtained approval; the boiler installation work has not begun. (3) Relevant project responsibility mechanism is clear. Personnel quality es good and is able to accomplish centralized heating relevant resettlement issues, Shanxi Yulong investment group co., LTD. Is a construction project unit, YouYu construction bureau for project executive agencies, YouYu land and resources bureau is the project land examination and approval authority. Agencies can each doing his own job, promote the project land expropriation and resettlement work carried out smoothly. Because during the implementation process, in terms of staff, great changes have taken place, staff knowing the progress situation is few. Has established the special project office, sound institutions, and personnel in place, and at the same time implement internal monitoring; External independent monitoring conducts by NRCR of Hohai university. (4) During the project preparation and implementation period, the project agencies had organized many public participation activities on physical quantity measurement, compensation standards, compensation funds pay wait for affected families concern, answer the public doubts in the heart, and affected people fully realize the public welfare the necessity and importance of the project construction, the project resettlement work smoothly laid the foundation. But some villagers to the policy and compensation standard is not a clear understanding, public participation dynamics remains to be strengthen. (5) Resettlement complains and the channels are smooth. Complaint full-time coordinator system has been set up and affected persons know appeal methods when their rights are violated. 4.9.2 Suggestions (1) Continue to strengthen the construction of institutional capacity, it is suggested that the relevant institutions and personnel a further ADB immigration policy and implementation of training, by the means of the theoretical study and visit exchanges in the form of combination, especially to has carried out or are implementing the

72 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank manila-based bank loan project investigation and study, to further strengthen the mechanism of efficiency and ability. (2) Strengthen the immigration material filing work. Attention should be paid to save resettlement in the process of the relevant materials, the establishment of land expropriation demolition files, for project completion acceptance and monitoring and evaluation to provide basic information. (3) Suggest to internal monitoring work, and update internal monitoring report.

73 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

5 Appendix

5.1 Appendix 1: Land Acquisition Agreement of Pingyao Subproject

74 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

5.2 Appendix 2: Relative Bidding Documents of Xinghuacun Subproject

75 Shanxi Small Cities and Towns Development Demonstration Sector Project Financed by Asian Development Bank

5.3 Appendix 2: Land Use Certificate of Youyu Subproject

76