Resettlement Plan

December 2010

PRC: Emergency Assistance For Wenchuan Earthquake Reconstruction Project

Prepared by Municipal Government, Province for the Asian Development Bank.

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Lueyang County Post-disaster Reconstruction Transport

Project Supported by ADB's Emergency Loan

Resettlement Plan

December 18, 2010

Hanzhong Municipal Government, Shaanxi Province

Table of Contents

EXECUTIVE SUMMARY...... 4 SKETCH MAP OF PROPOSED PROJECT ...... 7 1. PROJECT DESCRIPTION ...... 1 1.1 Project background 1 1.2 The components of the Project 1 1.3 Arrangement of the investment and implementation 2 1.4 Economical and technological feasibility study and earlier stage work 2 1.5 Potential adverse impacts 2 1.6 Executing and implementing agencies 2 2. SCOPE OF PROJECT IMPACT...... 3 2.1 Principles and measures to reduce project impact 3 2.1.1 Principles ...... 3 2.1.2 Measures...... 3 2.2 Number and kinds of the project impact 4 2.2.1 Types of project impacts...... 4 2.2.2 Building Demolition ...... 4 2.2.3 Land Acquisition ...... 4 2.2.4 Ground attachments...... 4 2.2.5 Other facilities ...... 4 2.2.6 Total number of affected persons ...... 4 2.3 Evaluation on project impact 6 3. SOCIOECONOMIC INFORMATION AND PROFILE ...... 7 3.1 Introduction of earlier-stage Survey on the project...... 7 3.2 Socioeconomic overview of project affected areas 8 3.2.1 Introduction of project affected areas ...... 8 3.2.2 Investigation data of affected villages ...... 8 3.2.3 Data analysis...... 10 3.3 Poverty 11 3.4 Minorities 11 4. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ...... 12 4.1 Information Disclosure and Consultation 12 4.2 Public participation 12 4.3 Village Meetings 13 5. GRIEVANCE REDRESS MECHANISMS...... 14 5.1 Agencies handling complaints and appeals 14 5.2 Scope of complaints and claims 14 5.3 Appeal procedures 15 5.4 ADB Accountability Mechanism 15 6. LEGAL FRAMEWORK ...... 16 6.1 National Laws and Regulations Concerning Acquisition and Relocation 16 6.2 ADB's Policy on Involuntary Resettlement 17 7. ENTITLEMENTS, COMPENSATION AND BENEFITS ...... 19 7.1 Policy and Principles 19 7.2 Compensation Standards 20 7.2.1 House Compensation...... 20

1 7.2.2 Land Compensation Standard...... 20 7.2..3 Compensation for young crops ...... 21 7.2.4 Other Affected Facilities...... 22 7.2.5 Evaluation of the Compensation Standard...... 22 7.2.6 Payment of Compensation Fee ...... 22 7.2.7 Temporary occupied land ...... 23 7.2.8 House Relocation and Transition Subsidies...... 23 7.2.9 Compensation scope of land acquisition and resettlement...... 23 7.3 Payment and monitoring of village-level land compensation 24 7.3.1 Inspection and preparation before transferring the fund ...... 24 7.3.2 Management and monitoring of fund utilization ...... 24 7.3.3 Auditing...... 25 8. HOUSE RELOCATION AND INCOME RESTORATION...... 26 8.1 Rehabilitation Planning Principles 26 8.2 Land Redistribution and Income Restoration Measures 26 8.3 House Relocation 27 8.4 Economic rehabilitation program for vulnerable groups 27 8.5 Special Measures for Women 28 8.6 Rehabilitation program of special facilities 28 9. RESETTLEMENT BUDGET AND FINANCING PLAN ...... 47 9.1 Cost estimates 47 9.1.1 Basic costs ...... 47 9.1.2 Contingency cost ...... 47 9.1.3 Management cost...... 47 9.2 Fund Flow 49 9.3 Fund sources and use of contingency cost 49 10. INSTITUTIONAL ARRANGEMENTS ...... 50 10.1 Coordination agencies 50 10.2 Implementing agency 50 10.3 Village Committees and Village Groups 50 10.4 Internal supervision agency 51 11. IMPLEMENTATION SCHEDULE ...... 52 11.1 Preparation stage (January 2009---January 2011) 52 11.2 Implementation stage (February 2011—May 2011) 52 11.3 Rehabilitation stage (June 2011---- May 2012) 53 11.4 Monitoring and Evaluation stage (February 2011—December 2012) 53 12. MONITORING AND EVALUATION ...... 55 12.1 Internal Supervision 55 12.1.1 Contents of internal Supervision...... 55 12.1.2 The method of internal supervision ...... 55 12.1.3 The implementation of the internal supervision ...... 56 12.1.4 The responsibilities of supervision agencies...... 56 12.1.5 Procedure and demand of supervision agencies ...... 56 12.2 External monitoring and evaluation 56

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Tables Table 1 Scope of Project Impacts ...... 5 Table 2 Permanent Land Acquisition...... 5 Table 3 Building Demolition ...... 5 Table 4 Ground Attachments ...... 5 Table 5 Special Facilities...... 6 Table 6 Crop income in recent three years of the 90 sample households（irrigated land）...... 6 Table 7 Socioeconomic data of the affected area...... 9 Table 8 Basic data of the 90 affected sample households...... 9 Table 9 Comparison of income between affected area and other places in 2009 ...... 10 Table 10 Appeal and lawsuit agencies and procedure ...... 14 Table 11 Rural Housing Compensation Standards ...... 20 Table 12 Land Compensation Standard...... 21 Table 13 AAOV of the Affected Areas ...... 21 Table 14 Affiliated Facilities Compensation Standard ...... 22 Table 15 Skill Training Plan ...... 27 Table 16 Matrix of affected persons’ compensation rights and relocation policy ...... 45 Table 17 Land Acquisition and Resettlement Budget...... 47 Table 18 Land Compensation Breakdowns ...... 48 Table 19 Housing Compensation Breakdowns...... 48 Table 20 Ground Attachment Breakdowns (1) ...... 48 Table21 Ground Attachment Breakdowns (2) ...... 48 Table22 Young Crop Compensation...... 48 Table 23 Schedule of land acquisition, housing demolition and resident resettlement ...... 53 I.

3 EXECUTIVE SUMMARY

A. Project background 1. “512” Wenchuan great earthquake and 6.4 earthquake seismic intensity in Lueyang caused great losses to people’s lives and property. Because of the earthquake, the economic losses in are 3,011 million yuan, among which the direct economic losses are 2,466 million yuan and the indirect economic losses are 545 million yuan. In order to regain the normal life and production, to offset the losses to the affected population, and propel the socioeconomic development of the earthquake-hit areas, Hanzhong City’s Overall Plan on Hanzhong Post-disaster Reconstruction arranges Lueyang County post-disaster reconstruction transport project supported by ADB’s Emergency loan. The so-called “311” project in Lueyang County supported by the ADB Emergency loan, contains 3 highways and 11 large, medium or small bridges. The highways are 93.849km and the bridges are 1329.87m. The total loan reaches USD19.10 million (RMB130.644 million yuan).

B. Project impacts 2. According to the design draft and fieldwork survey, 242 villagers of 69 households at the 15 villages will be affected by the land acquisition, accounting for 2.6% of total households and 2.2% of the total persons. 91 persons in 23 households will be affected by house demolition, accounting for 0.83% of total households and 0.87% of the total persons. The project will acquire 33.63 mu land, which accounts for 0.11% of the total 31,256 mu farmland of the 15 affected villages. During the implementation of the project, 605 ㎡ of buildings will be demolished. Because the degree of impact on the affected persons and households is very low, the affected villagers will be relocated in their own villages after the villagers committees discussed with all the villagers, especially the affected villagers. So, the construction of the project will mainly impact those villagers who are affected by the housing demolition.

C. Resettlement Policies 3. To protect relocated people’s legal rights and to guarantee relocated quality of the relocated people are stipulated in both our country’s relevant policy and laws and ADB’s policy, mainly include The Land Administration Law of the People's Republic of (Amended in 2004), Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28), and ADB Policy on Involuntary Resettlement (1995). In accordance with legal regulations concerning land acquisition and relocation by the national and local governments and guiding principles of ADB concerning relocation and resettlement, the Project shall be implemented in adherence to improving or not lowering the production conditions and living standard of the affected people. Therefore, the project will base on the spirit and demand of Decision on Furthering Reform of Land Management of the State Council and Notice on issuing the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of China and work out the plan of compensation.

4. The compensation for land acquisition including land compensation and resettlement subsidies is formulated on the basis of 22 times of Average Annual Output Value. The major rehabilitation measure for affected households is to adjust farmland within the affected village, in order to make affected households enjoy the same amount of farmland as other villagers after land acquisition, consequently mitigate the project impacts on individual households. The land compensation fund will be used to improve community infrastructures and productive facilities after concurrence by village representative meeting. House demolition will be compensated at replacement cost, and village will allocate a housing plot for each affected household to construct new house.

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D. Budget for land acquisition and resettlement

5. The estimate cost of land acquisition and resettlement will be up to RMB 1.054 million yuan, among it, the basic cost is RMB 747.8 thousand yuan. Land acquisition, relocation compensation cost shall be paid directly to villager’s committee and affected individual by the County Project Office after the fund is paid to the bank and the County Project Office by the implementing agency.

E. Implementation Schedule

6. The land acquisition, housing demolition and resident resettlement plan begins in February, 2011, and will be finished one month before the construction. The plan is divided into 3 stages: the first, preparation; the second, implementation; the third, inspection/monitoring/assess (internal and external monitoring will be in all implementation processes).

7. Preparation stage is from January 2009 to January 2011. The main job is to set up project administration agency, to do propaganda, to erect boundary markers, and to measure and check kind and quantity of affected land, housing and other facilities in site. This job is undertaken by the Project Office and affected villages.

8. Implementation stage is from February 2011 to the end of May of 2011. The main job is to sign an agreement on land expropriation, housing demolition and resident relocation compensation with affected villages’ Villagers’ Committee and affected villagers, to report documents of occupied land, to choose site and build new houses, to transfer housing compensation and land compensation, and to transfer construction land to the project construction unit after finishing the land expropriation, housing demolition and resident relocation.

9. Rehabilitation stage is from June 2011 to the end of May of 2012. The main job is to adjust land, to implement economic rehabilitation plan and measures, and to have skill training for affected individuals.

F. Organizational arrangement

10. The project is directed by the office (Shaanxi Provincial Project Office: in Shaanxi Using Overseas Loan Office) of the Leading Group, which is in charge of organizing, applying for ADB’s loan, coordinating relocation, monitoring and inspecting the payment of usage of the compensation for land acquisition and resettlement. Hanzhong City Lueyang County Post-disaster Reconstruction Leading Office is the project implementing agency. Hanzhong City Lueyang County Transport Bureau is in charge of organizing and coordinating compensation of land acquisition and relocation.

G. Public participation

11. As a vital social activity for land acquisition, resettlement and compensation, information and consultation should be well-prepared with the aim to make sure every relevant individual is acquainted with the significance, processes, appropriation, compensation, appeal and the way of settlement and problems existing in the project construction and consultation shall be carried on before hand.

12. The project resettlement policy and compensation rates were disclosed through meetings with affected villages. Each affected village has held the village meetings from September to October 2010, which invited the leaders of the village, the representatives of

5 affected individuals, the representatives of the poor to take part in discussing the policy of resident resettlement, the implementation plan, etc. The minutes of village meetings indicate that local communities and villagers strongly support the construction of the Project, and agree the compensation rates provided in the resettlement plan. After the RP (the first draft) was finished by the end of August 2010, the RP was printed and distributed to affected project office, and the RP (second draft) with higher compensation rates was disclosed in December 2010.

13. Besides efficient information and consultation, people’s governments at all levels and representatives of affected individuals will be invited to take part in the Project. They will know the whole process of land acquisition, housing demolition and resident resettlement compensation. And they can monitor whether all the work is undertaken in line with RP terms and ensure that the benefit of affected individuals is well considered.

H. Grievance and Appeal

14. The subproject established an appeal procedure for the complaints that may be received from project affected people. If affected people complain about land acquisition, housing demolition and relocation, they may approach village committee first. If the problem cannot be solved, they may report to the county (district) project office, which should help to coordinate and resolve. If the resident doesn't receive any response in three weeks or is not satisfied, he/she can claim to the project management office at municipal level.

15. If the problem is still not solved in three weeks or the affected individuals are not satisfied, they can make a lawsuit to county (district) people’s court according to legal procedure. If the affected individuals are not satisfied with the judgment made by county (district ) people’s court, they can appeal to the municipal intermediate people’s court. The judgment made by the intermediate people's court is final; the affected individuals must obey the judgment. In addition, ADB’s Accountability Mechanism is also applicable for the subproject.

H. Monitoring and evaluation 16. In order to guarantee the smooth process of the land acquisition, housing demolition and resident resettlement compensation, there are two kinds of supervision carried out simultaneously by two independent organizations in different ways: the first, an internal supervision system by the government to monitor according to RP terms in the angle of administrative management; and the second, an external monitoring and evaluation system by sociologists to assess whether resettlement objectives have been met.

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SKETCH MAP OF PROPOSED PROJECT

Figure 1 Sketch of Xibai Highway

Xibai High-

Xibai High-

Figure 2 Sketch of Guoqing Highway

Guoqing Highway

Guoqing Highway

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1. PROJECT DESCRIPTION

1.1 Project background

17. Due to “512” Wenchuan great earthquake, Ningqiang 8.0 Richter-scale earthquake and other continuous aftershocks, 92 counties in 11 cities (district) of Shaanxi Province suffered in different degrees, the affected population reached to 3,265,600, and the direct losses were RMB 24.5 billion yuan. Especially, 40 counties (districts) in Hanzhong City, City, City, Xi'an City and suffered a lot. In Lueyang County, the earthquake seismic intensity is up to 6.4, and later a lot of aftershocks followed, which brought great losses to people’s lives and property. Because of the earthquake, the economic losses in Lueyang County are 3,011 million yuan, among which the direct economic losses are 2,466 million yuan and the indirect economic losses are 545 million yuan. In order to propel post-disaster reconstruction, the State Council issued Regulations on Wenchun Earthquake Post-disaster Reconstruction, Guidance on Wenchun Earthquake Post-disaster Reconstruction (Guofa 2008 No. 22), and Notice on Wenchun Earthquake Post-disaster Reconstruction Overall Plan (Guofa 2008 No. 31).

18. In order to regain the normal life and production, to offset the losses to the affected population, and propel the socioeconomic development of the earthquake-hit areas, the People's Government of Hanzhong City, in accordance with the above regulations of the State Council and Overall Plan on Hanzhong Post-disaster Reconstruction issued by Shaanxi Province and the situation of Hanzhong City, made out Overall Plan on Hanzhong City Post- disaster Reconstruction and issued to carry out on June 13, 2008. According to Overall Plan on Hanzhongi Post-disaster Reconstruction, there are a so-called “311” project in Lueyang County supported by the ADB Emergency loan, that is, 3 highways and 11 large, medium or small bridges. The highways are 93.849km and the bridges are 1329.87m. The total loan reaches USD19.10 million (RMB130.644 million yuan).

1.2 The components of the Project

19. There are three subprojects for transport facilities in Lueyang County of Hanzhong City supported by the ADB Emergency loan. A. To rebuild the Xibai Highway (Xihanshui Bridge---Baishuijiang): the length of the highway is 34.90km, among which the main highway of Xibai Highway is 32.80km and the Matiwan Branch Highway is 2.10km. The construction includes: a. to improve 34.90km old highway or substandard highway; b. to build some large and medium bridges: Matiwan Jialingjiang River Bridge with the length of 234.08m, Fujiashan Bridge with the length of 51.54m, Hongweiba Bridge with the length of 28.04m, Shuiyingou Bridge with the length of 95.04m, Qingnihe Bridge with the length of 203.08m, and Ganxigou Bridge with the length of 91.04m. The design standard is Grade 4 highway standard in mountainous area. The total loan is USD11.23 million (RMB 76.8132 million yuan). B. To rebuild the Xiangcun Highway (Lueyang---Baishuijiang Highway). The total length is 35.078km, among which the 6.017km part from Lueyang to Zhongchunhekou is to widen the subgrade but lands to be acquired are wastelands within the boundary of original highway, and the 29.061km part from Zhongchuanhekou to Baishuijiang is only to repair the damaged road base. The construction includes: a. to improve and repair the original highways. b. to build 3 bridges, that is, Baishuijiang Middle School Jialingjiang River Bridge with the length of 141.3m, Fengjiaba Bridge with the length of 86m, and Yajianba Jialingjiang River Bridge with the length of 166.10m. The design standard is Grade 4 highway standard in mountainous area. The total loan is USD3.5 million (RMB 23.94 million yuan).

1 C. To rebuild Guoqing Highway (Guozhen---Qingbaishi). The total length is 23.871km, among which 9.6km highway will be widened, 14.271km drainage will be improved, 24.06m Caijiaying Bridge and 217.12m Qingbaishi Bridge will be built. The design standard is Grade 4 highway standard in mountainous area. The total loan is USD4.37 million (RMB 29.8908 million yuan).

20. The affect of land acquisition and housing demolition of the above three subprojects only includes Xibai Highway and Guoqing Highway. The town highway project only improves and repairs the current highways but lands to be acquired are wastelands within the boundary of original highway1. New-built bridge project need acquire 16.69 mu wasteland and need not acquire land of town and village. So this RP will focus on Xibai Highway and Guoqing Highway, whereas the town highway project will be described briefly. . 1.3 Arrangement of the investment and implementation

21. The total investment of the transport facilities in Luoyang County supported by the ADB Emergency loan is up to USD19.10 million (RMB 130.644million yuan), and the loan will be used only in construction but not in land acquisition and relocation, the cost of which will be paid by the county (district) government and the government will try to apply the fund from the central government and the provincial government. The estimated cost of land acquisition and resettlement will be up to RMB 1.054 million yuan.

1.4 Economical and technological feasibility study and earlier stage work

22. The initial preparation of the Project has been carried out one after another. SDRC approved the reports on the feasibility studies respectively on February 10 2009 and September 30 2009. At present, except that the design of Fengjiaba Bridge and Yujianba Bridge of Xiangcun Highway are being judged by the experts, all other designs have been approved.

1.5 Potential adverse impacts

23. The post-disaster reconstruction supported by ADB's Emergency loan in Lueyang County will help the affected population to regain their normal life and production, to compensate their losses, and to propel the socioeconomic development. However, according to other implementations of similar project, we should pay attention to several problems especially in the project: the first is that the project fund should be paid in full amount and in time to guarantee the project's implementation. Second, we should guarantee the quality of various constructions to avoid possible inconvenience and security problem for the later use. Third, we should handle all the possible problems during the constructing process and any unexpected situation, with the attitude of being open, just, transparent, consultative and consistent. And we should avoid any negative influence to the project caused by the policy deviation and the responsibility oversight.

1.6 Executing and implementing agencies

24. The executing agency of the Project is Leading Office of Lueyang County Post- disaster Reconstruction, and the implementing agency is Lueyang County Transport Bureau.

1 There is no ongoing untitled settlement or itinerant income generation activity on the acquired wastelands within the boundary of the original highway.

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2. SCOPE OF PROJECT IMPACT

2.1 Principles and measures to reduce project impact

2.1.1 Principles

25. The basic principle of the project implementation is to reduce the affect of project impacts to the socioeconomic development and people's life as far as possible, and the preparation work of the project shows the principal. During the stage of survey and design, the project is discussed by local government and experts. The project will not decrease its technical standard and environment protection standard, and then, the location and direction of the project is decided according to the following principles: （1）The design institute should design the project to occupy farmland as less as possible, taking advantage of barren hill, barren land and barren beach to minimize land acquisition. （2）To avoid humane scenery (including temples for religious activities) and the key protection unit of cultural relics. (3) To avoid densely inhabited area to minimize affected persons. (4) To protect the existing water conservancy facilities. To resume the affected part by the project and to maintain the original irrigating system.

2.1.2 Measures

（1）At the stage of feasibility study, when choosing the project place, we first decide key area and key place to avoid, and decide the project area taking construction, environment, resettlement into consideration. （2）To have a fieldwork survey of the project area, to collect topography, landforms, cultural relics, mineral resource and economy development program, and to solicit local government and residents’ opinion of the position scope. (3) To have field measure of land acquisition and resettlement, survey of residents’ opinion and social economy. According to the relevant laws and policy of our country, to determine the compensation standard of affected land and resettlement, to survey the number of all kinds of land and building, and to survey land, farmland, population construction, economic condition, etc. (4) To collect detailed data of cultural relics in the affected area. (5) To negotiate with villages in the affected area and plan department, and to choose places to construct, and not to occupy the high-quality farmland. （6）According to the results of the survey, to compute the total expenses of land acquisition and resettlement and the project (including the environmental protection fee).To have a joint meeting with three parties of engineering, environmental protection and resettlement, to consider local development program, government, and residents' opinions, to analyze and compare the survey result as follows. ------Comparison of construction investment ------The possibility of the labor force setting, the analysis of environment capacity in certain area ------The project affection to irrigation and domestic water, if it is easy to resume ------From the point of local economy develop potential, to analyse if it is easy to resume or raise the living level of local residents after land acquisition and to make sure the production and living level will not decrease after land acquisition ------The analysis and comparison of the construction benefit and social benefit of the project By comparing the above items, improving the plan, soliciting local residents' ideas, the final draft is decided.

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In the stage of survey, the construction unit will make further survey on the implementation area to choose the best option and to minimize land acquisition. In the stage of implementation, the project owner and supervision engineers will check construction design of the construction unit to minimize land occupation and farmland damage; in the stage of resettlement, the resettlement unit will minimize fertile land occupation when they choose place for rebuild housing and other buildings.

2.2 Number and kinds of the project impact

26. According to the implementation plan of the project, in May of 2010, the implementation agency surveyed the affected number and kinds. The detail is in Table 1--- Table 5. However, the final number and kinds will be finalized according to the measure and check before implementation of land acquisition and resettlement. In case of significant changes in scope of project impact and compensation rates, the resettlement plan will be updated and submitted to ADB for concurrence before commencement of civil works.

2.2.1 Types of project impacts

（1）5 kinds if occupied land：Irrigated land, vegetable land, dry land, housing land and waste land. （2）2 kinds of houses: Brick and concrete, brick and wood (3) 6 kinds of attached facilities: Fruit trees, useful woods, young trees, enclosure, water closet, and tombs (4) 3 kinds of special facilities: Irrigating facilities, telecommunication facilities, and power facilities.

2.2.2 Building Demolition

27. The project needs to demolish 605 square meters of buildings, among which, brick and concrete building is 240 square meters, brick and wood building 365 square meters.

2.2.3 Land Acquisition

28. The Project will expropriate 33.63 mu of land area, including 0.52 mu irrigated land, 1.62 mu vegetable land, 22.19 mu dry land, and 9.3 mu housing land.

2.2.4 Ground attachments

29. The affected ground attachment in this project contains: 122 fruit trees, 181 useful trees, 764 young trees, 54 meter enclosure, 5 water closets, and 32 tombs.

2.2.5 Other facilities

30. Other affected facilities are: five wells, 430 meters of channel, 10 electricity poles, 600 meters of electricity wire, 420 meters of telecommunication wire, 500 meters of cable line, and 43 meters of water pipe.

2.2.6 Total number of affected persons

31. According to survey, during the project implementation, 69 families and 242 persons

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will be affected by land acquisition, accounting for 2.6% of total 2649 households and 2.2% of total 10,961 persons in the 15 affected villages. Among 69 families affected by land acquisition, 23 families and 91 persons will also be affected by housing demolition, accounting for 0.87% and 0.83% respectively of the number of families and persons of the affected villages. See Table 1 to Table 5.

Table 1 Scope of Project Impacts Type Affected Population/ Acquired Affected demolishe Affected Green item village households of land persons/ dhousin population crop affected （mu） household g（㎡） /househol （mu） villages s ds Xibai Highway 8 8530/2095 12.1 71/21 14 3/1 11.8 Guoqing 7 4675/1039 21.53 171/48 591 88/22 12.53 Highway total 15 13205/3134 33.63 242/69 605 91/23 24.33

Table 2 Permanent Land Acquisition Type item Acquired land （mu） total Irrigated Dry land Vegetable land Housing land land Xibai Highway 12.1 11.80 0.3 Guoqing 21.53 0.52 10.39 1.62 9 Highway total 33.63 0.52 22.19 1.62 9.3

Table 3 Building Demolition

type Demolished housing（㎡） item total Brick and concrete Brick and wood Xibai highway 14 14 Guoqing highway 591 226 365 Total 605 240 365

Table 4 Ground Attachments type Fruit tree Other trees Enclosure WC Tomb item mature young s (m) Xibai highway 40 49 348 30 2 20 Guoqing Highway 82 132 416 24 3 12 total 122 181 764 54 5 32

5 Table 5 Special Facilities type Power Wire Telecommuni cable well channel pipe Pole （ m cation wire（ （m） （m） （m） item ） m） Xibai highway 4 260 240 250 2 160 15 Guoqing 6 340 180 250 3 180 28 highway

total 10 600 420 500 5 340 43

2.3 Evaluation on project impact

32. According to the design draft and fieldwork survey, the land acquisition of the project will not affect local residents' farmland seriously. For the 15 affected villages, the farmland per capita before land acquisition is 2.37 mu, and the project will acquire 24.33 mu land, which accounts for 0.078% of the total 31,256 mu farmland. After land acquisition, the farmland per capita is 2.365 mu, which is 0.005 mu less than before land acquisition. Even for the 69 affected households who lost farmland, the average loss is only 0.5 mu farmland (a 5.3% loss). According to 360 yuan product value per mu and 4.3 persons per household in 2009, the output value for half mu is 180 yuan, and the loss per capita is only 41.9 yuan, which accounts for 2.4% of the income per capita of 1719 yuan.

Table 6 Crop income in recent three years of the 90 sample households（irrigated land）

Average *net Item output Output value cost price income Wheat 350 1 350 200 **160 maize 360 1.05 378 200 **170 rapeseed 210 1.95 409.5 250 159.5

* including labor cost；

**the project area is in an area where there are a lot of geologic disasters. In theory, the farmers can harvest wheat and maize once respectively. However, in recent year, because of different kinds of geologic disasters, the farmers only can harvest once and the output value is 350 yuan. The dry land is not suitable for planting maize and the output of wheat is a bit lower, about 85-90% of that in irrigated land, 320 yuan.

33. During the implementation of the project, 605 ㎡ of buildings will be demolished, and 91 persons in 23 households will be affected by the demolition and need to be relocated, which account for 0.73% of the total 3137 households and 0.69% of the total 13,205 persons in the 15 affected villages. Because the degree of impact on the affected persons and households is very low, after obtaining full compensation, the affected villagers will be relocated within their own villages and will construct their new houses by use of compensation. So, the affected villagers can be easily resettled.

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3. SOCIOECONOMIC INFORMATION AND PROFILE

34. Foreign Loan Office of Shaanxi Province is in charge of the socioeconomic survey, supervision and preparing the plan of land acquisition, housing demolition and resident resettlement over the affected area of the Project. Lueyang Transport Bureau, the implementation agency, along with project social development consultant experts, is in charge of all the work of the project baseline investigation, socioeconomic investigation, and the formulation of the plan of land acquisition, housing demolition and resettlement.

3.1 Introduction of earlier-stage Survey on the project

35. The earlier-stage consultation on the project is carried out in two sections: From August 2008 to February 2009, when Lueyang Transport Bureau was doing the feasibility study to this project, they carried on a preliminary socioeconomic survey of the affected area, and solicited the local government and some villagers' opinions in certain scope. In June of 2010, Lueyang Transport Bureau, along with the consultant experts, had a total investigation on the socioeconomic condition of the project affected villages, and affected persons, land, houses and attached facilities. And the experts chose 90 households of 3 villages in the 15 affected villages of 3 towns to have a survey of living conditions. After analyzing and processing the data and information under the surveys, the Bureau has compiled the “Land Acquisition, Relocation and Resettlement Plan under the Project of Post-disaster Reconstruction supported by ADB's Emergency loan in Lueyang County.

36. The project area involves 3134 households in 15 villages of 4 towns in Lueyang County Post-disaster Reconstruction of transport supported by ADB’s Emergency loan, so the sample survey is employed. Concrete survey method adopts both collecting materials in room and visiting villages and families outside, both having an informal discussion and questionnaire survey. That is to say, we collect relevant characters, report form and drawing materials from project implementation bureau and other relevant bureaus. At the same time, we have an informal discussion with the project implementation area villagers, observe and survey on the spot, and fill out fixed tables. All these make the survey as aimed as possible.

37. The project impact survey and socio-economic survey mainly covered following items: （ⅰ）The project affected area socio-economic survey and survey of villagers’ living style, the main contents are as follows: a. administrative area, including the basic situation of county, city and province affected by the project b. Main economic index in 2007—2009 in the above affected area c. The impoverished population distribution in the above affected area d. The living condition of minority households, particularly and women and to check whether any minority groups are living in the above affected area e. The highway condition in the project affected area f. The information of the affected villages, including population, farmland, per capita income g. The information of the sample households, including the percentage of income from planting, breeding, sideline and industry h. The working construction and average property of the sample households i. The living condition, drinking water condition and life style at the affected village j. The affected individuals' attitude and opinion to the project, the compensation policy of land expropriation, housing demolition and resident relocation, and economic resume plan. （ⅱ） Land expropriation, housing demolition and resident relocation affection impact survey, the main contents are:

7 a .The quantity of affected land expropriation, housing demolition and all kinds of special-purpose facilities, the number of affected individuals caused by the Project b .The quality, output per mu and output value of occupied farmland of the project c .The construction value and rebuilt value of demolishing buildings of the project d .The economical situation of the affected households e The economical situation of the affected villages and enterprises f .The duration to the land expropriation, housing demolition and resident relocation of the affected g .The opinions and attitude of the project given by people.

3.2 Socioeconomic overview of project affected areas

3.2.1 Introduction of project affected areas

38. The Project area, Lueyang County lies between Qinling Mountain in the north and Bashan Mountain in the south. Lueyang is the west border of Hanzhong City, and the of Baoji City and the common border of Shaanxi Province, Province and Sichuan Province. Lueyang connects with Kangxian County, Huixian County and Chengxian County, three counties of Longnan City, Gansu Province. Lueyang is the important crossroad for railways and highways to Gansu Province and Sichuan Province. The area is 2831 square kilometers, or 4,246,731 mu, among which 0.28 million mu is farmland. The population density is 71 persons per square kilometer. The farmland per capita is 1.93 mu. There are 183 villages in 21 towns and the rural population is 143,900 persons in 34,000 households. In 2009, the GDP of Lueyang County is RMB 3.205 billion yuan and the revenue is 0.288 billion yuan. The net income per capita of farmers is 3117 yuan.

39. There are a lot of high mountains, deep valleys and rivers in Lueyang County, which always causes natural disaster. According to the county annals, from 128 A.D. to now, there are more than 70 great flood and 50 earthquakes. Almost every year, there are all kinds of geologic hazards, which affect local socioeconomic development and especially affect the agricultural production. So, most of local people’s income is from the labor income and other sidelines.

3.2.2 Investigation data of affected villages

(1) Population of affected villages 40. There are 15 villages in 4 towns in the project area of Lueyang County Post-disaster Reconstruction Traffic Project Supported by ADB's Emergency Loan. The population is 13,205 in 3134 households, among which, 6707 persons are male and 6498 are female, and the rate is 1:0.969. The population per household is 4.21. There are 1923 children, 2597 persons older than 60, and 8685 working age adults. The portion in the total population is 14.56%, 19.67%, and 65.77% respectively. (2) Socioeconomic condition 41. According to household survey, by the end of 2009, there are no village enterprises or individual enterprises in 15 affected villages in the project area. Because the affected villages are in the area where there are a lot of geologic disasters, villagers' income is from part-time job and sidelines, which account for more than 50% of the total income. Other income is from agriculture and poultry. At present, more than 5298 persons (61% of the labor force) get part-time jobs mainly in Shaanxi (46%) and out of Shaanxi (54%). 58 families undertake transportation for passengers and to transport agricultural products. The affected villages get relatively low income from agriculture, even though there is 31,256 mu farmland in the 15 villages. Since farmland is abundant (the farmland per capita is 2.37 mu), the

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income from agriculture accounts for 43% of the total income. They plant crops such as wheat, corn, bean and rapeseed, and economical crop such as gooseberry, peach and apricot. Some housewives manage household animal husbandry such as chicken, pig and cow, and the income from animal husbandry accounts for 7% of the total income. In 2009, the per capita income in 15 affected villages was 1719 yuan. See details in Table 7.

Table 7 Socioeconomic data of the affected area contend Villagers Hous Rural Poor Farmlan Net Total income s committee e- Population population d income of village county hold (person/ (mu) （per capita /district household) ） Matiwan 311 1312 397/159 3335 1875 2461312 Matiwan Fujiashan 198 783 315/126 2333 1769 1385127 Town Chanjuesi 177 727 320/128 1801 1571 1142117

Dashaba 224 959 365/146 1448 1868 1791412 Liangjiawa Baish 315 1216 550/220 3449 1712 2081792 n uijian g Xiaohe 359 1480 537/215 1750 1720 2545600

Xibai highway Town Ganxigo 178 766 340/136 1960 1830 1401780 Fengjiaba 333 1287 620/248 2650 1760 2265120

Haoba 155 621 245/98 2372 1725 1071225 Shijia Pangjiaying 75 290 170/68 1456 1870 542300 yuan Town guojiaba 98 436 158/63 1641 1628 709800 Caijiaying 147 630 238/95 1400 1633 1028790 Guozhenji 228 1289 507/203 3986 1796 2315044 e Guojia Yangjialin 148 611 237/95 517 1368 835848 Town g Guoqing HIghway Pinggou 188 798 295/118 1158 1505 1200990

total 15 3134 13205 5294/2118 31256 1719 22777257 (3) Investigation data of the sample households 42. In the project area, 90 households in 3 villages in Xiaohe Village in Baishuijiang Town, Matiwan Village in Matiwan Town and Caijiaying Village in Shijiayuan Town are chosen as sample households. The data are in Table 8.

Table 8 Basic data of the 90 affected sample households Item Affected 90 households Time End of 2007 End of 2008 End of 2009 Population 397 Labor force 254

9 Farmland per capita（ 2.1 2.1 2.1 mu） Annual average net income 1795 1730 2010 (yuan) Farmland per household 9.27 9.27 9.27 Yearly output value per 450 300 320 mu Average planting 3001 7898 2664 7612 2830 8844 net poultry 553 686 973 income per 4344 4262 5041 househol sideline d averag Production 2065 8062 2414 10058 2032 8530 e cost cost per 7644 6498 Life cost 5997 family Housing per capita 20 m2 Production Machinery 1.5 (ten thousand yuan） Life apparatus 1 (ten thousand yuan） Note: the planting income contains income from orchard. 43. According to the investigation, the average income per household is 8844 yuan a year for the 90 sample households in the 15 project affected villages, and income per capita is 2010 yuan, which is a bit higher than 1719 yuan for that of the 15 villages. The farmland output value contains irrigated land and dry land average annual output value. The average annual value is 350 yuan from 2007 to 2009. The above two figures are a little bit different from that of the village, for example, the income per capita of the 15 villages is 14.5% lower than that of the sample households and the output value of the 15 villages is 12.8% than that of the sample households. The reason may be the villagers' expectation, and so on. However, the data are nearly the same.

3.2.3 Data analysis

44. The investigation data from the 15 villages in 4 towns of Lueyang County, the project area, show that the living standard in the affected villages is lower than that of the country, Shaanxi Province, and that of Lueyang County. Table 9 shows that the living standard of the affected villages in affected area in Lueyang County are 32.1%, 39.58% and 66.64% lower respectively. In 2009, the income per capita in the project affected villages is 1719 yuan (USD 256), so the project area is a developing area in Shaanxi Province.

Table 9 Comparison of income between affected area and other places in 2009 area China Shaanxi Lueyang Affected content villages Net income per capita for rural 5153 3500 3117 1719 population Rate compared with 100% 67.9% 60.5% 33.36% Minimum living standard 40,000,000 2,060,000 16,044/6417 5294/2118 (person/household) /15,000,000 /830,000

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45. “512” Wenchuan Earthquake damaged Lueyang’s socioeconomic development greatly. The economic losses are 3.011 billion yuan. Especially, the damage of highways, bridges, landslide brought great trouble for the local people’s life and production. This is the greatest natural disaster from which Lueyang suffered from the foundation of PRC in 1949, so the State Council made Lueyang District as one of the 41 counties (districts) which suffered most from the great earthquake.

3.3 Poverty

46. By the end of 2009, the minimum living population is 5294 persons in 2118 households, accounting for 40.1% of the total rural households and 67.58% of the total rural population in Lueyang County. The main reasons for being poor are: a. the main labor of the family is weak or ill, b. lack of labor (working age adults), and c. high expense on the sick.

47. Only 18 households are the minimum living households or poor households which are guaranteed by social security, accounting for 26.1% of the total 69 affected households. The reason may be the affected households mainly locate in the area where there is convenient transport and are easy to raise their economic situation, so the project affects the poor households in a low degree.

3.4 Minorities

48. There are no minorities living in the area, and all residents speak Chinese.

11 4. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

4.1 Information Disclosure and Consultation

49. As a vital social activity for land acquisition, resettlement and compensation, information and consultation should be well-prepared with the aim to make every affected individual acquainted with the significance, processes, appropriation, compensation, appeal and the way of settlement and problems existing in the project construction. Therefore, consultation shall be carried on before hand. （i）The information and consultation process is as follows: Land acquisition, resettlement and compensation shall be carried out by two methods: first, social medium; second, correspondent management mechanism. a. Make good use of newspaper, radio. TV, and bulletin in order to get understanding and support from every aspects of the society. b. The project administration office consultation to affected individuals in forms of meeting, document, notice, and so on, before the project begins. 40. （ii）The contents of the information and consultation a. To explain the significance of the construction and timing of the project. b. To explain the principles and procedures of land acquisition, housing demolition and resident resettlement in RAP, and plan and measures of economic rehabilitation. c. To explain all levels of project administration and their duty scope. d. To explain compensation standard of land acquisition, housing, other property and all kinds of specialized facilities. e. To explain the distribution and usage of compensation fund. f. To explain the way of submitting a grievance claim during the land acquisition, housing demolition and resident resettlement compensation. g. To explain the duty and jurisdiction of claim accepting agency at all different levels, and inform the affected individuals or enterprises how to protect their own benefits and right through legal way. h. To explain internal supervision agency and external monitor and their activity contents in the compensation work. i. The information of land acquisition, housing demolition and resident resettlement must be explained to women, the disabled and other vulnerable groups By above mentioned activities, make all the affected individuals aware of impacts and their entitlements so they are more willing to accept and support the project. 41. (iii) Timing of information disclosure and consultation After the RP (the first draft) was finished by the end of August 2010, the RP was printed and distributed to affected district project office, and the RP (second draft) with higher compensation rates was disclosed in December 2010. At the same time, the information handbook of land acquisition, housing demolition and resident resettlement was distributed to all the affected villagers.

4.2 Public participation

50. Besides efficient information and consultation, people’s governments at all levels and representatives of affected individuals will be invited to take part in the Project implementation. They will know the whole process of land acquisition, housing demolition and resident resettlement compensation. They can monitor whether all the work is undertaken in line with RP terms and ensure that the benefit of affected individuals is well considered.

51. In terms of holding meetings or soliciting individuals’ opinions, the project implementation agency has already solicited opinions and suggestions from (a) the governments at all levels along the project construction line, (b) the representatives of affected units in the stage of design and preparation, and (c) affected villagers. They take the

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following activities in the process of land acquisition, housing demolition and resident resettlement. a. Survey and design stages: (completed) ------Comparison of project implementation draft ------Sorting and measuring of affected land and housing ------The survey and check of trees, wells, enclosures, etc. ------The survey and check of irrigation, electricity, communication and other facilities b. Implementation stage: ------Sorting the compensation scope and definition of compensation standard ------Sign of compensation agreement ------Choosing new relocation spot and building the new houses ------Redistribution of land ------Rehabilitation plan (by use of compensation funds) ------Resettlement of affected persons and enterprises ------Survey and coordination of grievance claim and appeal measures ------Monitoring and evaluation of resettlement implementation and results.

4.3 Village Meetings

52. The contents of village meetings are about all the aspects such as target, scope, policy of land acquisition, housing demolition and resident resettlement, compensation standard, payment way, executive agency, implementation plan and so on.

53. Each affected village has held the village meetings in September 2010 and beginning of December 2010, which invited the leaders of the village, the representatives of affected individuals, the representatives of the poor to take part in, discussing the policy of resident resettlement, the implementation plan, etc. The minutes of village meetings indicate that local communities and villagers strongly support the construction of the Project, and agree the compensation rates provided in the resettlement plan.

54. The responsible agency of public hearing is the land administration bureau at all levels, with close coordination with the village committee. Once the project implementation begins, the key persons in charge of resettlement administration at all levels, office address and telephone contact numbers should be announced in the affected areas.

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5. GRIEVANCE REDRESS MECHANISMS

55. In order to protect the affected individual's interest, if anyone feels dissatisfied about the allocation work, he or she may make complaint and appeal to the project offices at correspondent levels. Further, he or she may take judicial proceedings to the People's Court of county or municipal level.

5.1 Agencies handling complaints and appeals

56. Agencies transacting complaints and appeals are: the post-disaster reconstruction leading offices at correspondent levels, People's Government of the town and the villagers' Committee.

57. The appeal transaction agencies are People's Court of the County and the Municipal Intermediate People's Court. The appeal transaction agencies and procedures are shown in Table 10.

Table 10 Appeal and lawsuit agencies and procedure

City’s Intermediate People’s Court

County People’s Court

Provincial Post-disaster Reconstruction Leading Office

County Project Office

Affected Villagers’ Committee individuals

5.2 Scope of complaints and claims

（i）Complaint caused by land ,housing and other facilities compensation.

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（ii） Complaint caused by unsuitable dealing in the process of demolition or forcing the price down on purpose. （iiii）Complaint that the compensation standard is too low （iv）Complaint that the project construction damages others’ benefit. （ v ） Complaint that the staff damage the affected enterprises or individuals’ interest or damage others benefit. （vi）Complaint that the affected individuals think the compensation standard is lower than the replacement value.

5.3 Appeal procedures

（ i ） If the resident complains about land acquisition, housing demolition and resident resettlement work, first, they can tell it to the village committee in written form or orally, and ask for a solution or response. If the problem cannot be solved, the county project office should coordinate and resolve. If the resident doesn't receive any response in three weeks or is not satisfied, he/she can claim to the project management office at higher level in written form. （ii）The project management office at upper level should solve in three weeks after receiving claims from the affected individuals. If the problem is not solved in three weeks or the affected individuals are not satisfied, they can make a lawsuit to county people’s court according to legal procedure. (iii) If the affected individuals are not satisfied with the judgment made by county people’s court, they can appeal to the city intermediate people’s court. The judgment made by the intermediate people's court is final; the affected individuals must obey the judgment.

5.4 ADB Accountability Mechanism

58. If two or more households still think they have suffered direct, material and adverse harm and believe it stemmed from ADB's lack of compliance with its policy and/or this RP, they may submit a request to ADB following procedures set out in ADB's Accountability Mechanism2.

2 http://www.adb.org/Accountability-Mechanism/

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6. LEGAL FRAMEWORK

6.1 National Laws and Regulations Concerning Acquisition and Relocation

59. In accordance with the following legal documents, the construction unit is entitled to the land acquired upon compensating the affected units and people. (1) The Land Administration Law of the People's Republic of China . Adopted at the Sixteen Session of the Standing Committee of the Sixth National People's Congress on June 25, 1986; amended in the light of the Decision of The Fifth Session of the Standing Committee of the Seventh National People's Congress on Amending the Land Administration Law of the People's Republic of China on December 29,1988, and amended at the Fourth Session of the Standing Committee of the Ninth National People's Congress on August 29,1998; and effective as of January 1,2004. Main contents: formulations on land ownership, land using overall plan, farmland protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and relocation way of relocated people. (2) Regulations on the Implementation of the Land Administration Law of the People's Republic of China (No.256 Decree of the State Council of The People's Republic of China on December 27,1998) Main contents: in the light of the Land Administration Law of the People's Republic of China, formulates concrete implementation ways. (3) Regulations on the Protection of Basic Farmland (No.257 Decree of the State Council of The People's Republic of China on December 27,1998) Main contents: in line with Agriculture Law of the People's Republic of China and the Land Administration Law of the People's Republic of China, concrete formulations for the country's protection of basic farmland, including delimitation, protection, supervision and management, legal responsibility, and so on. (4) Interim Regulations of Farmland Use Tax of the People's Republic of China (No. 27 Document of the State Council on April 1,1987) Main contents: formulations about tax contribution standard and contribution range of state construction occupied farmland. (5) Regulations on the Implementation of the Land Administration Law of the People's Republic of China of Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People's Congress on November 30, 1999, and effective on January 1, 2000) Main contents: in line with the Land Administration Law of the People's Republic of China, Regulations on the Implementation of the Land Administration Law of the People's Republic of China, the reality of Shaanxi Province, concrete formulations. (6) Detailed Implementation Regulations on Regulations on the Protection of Basic Farmland of Shaanxi Province (No. 30 Decree of the People's Government of Shaanxi Province on April 4, 1996) Main contents: in line with the Land Administration Law of the People's Republic of China, Regulations on the Protection of Basic Farmland by the State Council, relevant laws and regulations, and the reality in Shaanxi Province, concrete formulations on the protection of the basic farmland in Shaanxi Province. (7) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28) Main contents: In order to use the land properly, to protect the legal rights of the peasants whose land is expropriated, to maintain social stability, and to perfect the land expropriation and resident relocation system, the decision puts forward the guide principle and way to perfect the compensation of land expropriation. The decision asks all the county, city and province governments to take useful measures to make sure that the peasants' living

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standard will not decrease after their land is expropriated, and that according to laws in force, the land compensation, relocation compensation, ground attachment and young crop compensation are paid in full and in time. If according to laws in force , after the payment of land compensation and relocation compensation, the peasants whose land is expropriated cannot maintain the original living standard , and their social security can not be paid , the province , autonomous region and municipality government should agree to add relocation compensation. If the sum of land compensation and relocation compensation reaches the legal upper limit, but the peasants whose is expropriated couldn't remain the living standard as before, the local people's government can subsidy with the state-owned land income. The government of province, autonomous region and municipality should work out and promulgate the standard of output value or price of land. The land expropriation should be the same land the some price. The national key construction project should take the expense of land expropriation into its budget. (8) Notice on Printing the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People's Republic of China (Nov. 3, 2004, Guotuzifa [2004] No. 238) The main contents: to put forward how to carry through 《The Decision of the State Council on Deepening the Reform and Strictly Enforcing Land Administration》especially aiming at some problems during the land expropriation compensation and relocation system. There are two aspects: A. To formulate unified annual output value standard. The provincial land and resources administration along with relevant agencies woks out the lowest unified annual output value of every county in the province, then announce and carry out it after the approval of the province government. The workout of unified annual output value standard should consider the type and quality of expropriated land, the investment on the land, the price of agricultural products, the grade of land, and so on. B. The affirmation of unified annual output value times. The unified annual output value times of land compensation and resettlement subsidy should ensure the peasants whose land is expropriated remain a standard no lower than before and be worked out within the legal limit. According to the legal unified annual output value times, if the land compensation and resettlement subsidy couldn't ensure the peasants whose land is expropriated couldn't remain the original living level and couldn't pay for their social security, the times can be increased after the approval of province government. If the sum of land compensation and resettlement subsidy is 30 times as the unified annual output value, the peasants whose land is expropriated couldn't remain the original living standard, the local government can subsidy from the state-owned land income. If the basic farmland is expropriated by the legal approval, the land compensation should be carried out according to the highest compensation standard announced by the local government.

6.2 ADB's Policy on Involuntary Resettlement

60. For its supported construction project, ADB formulates its policy--- ADB's Policy on Involuntary Resettlement (1995). Its main contents are same as our country's relevant laws and regulations, and only a few items are different.

61. Involuntary resettlement should be an important consideration in project identification. For any project that requires relocating people, resettlement should be an integral part of project design and should be dealt with from the earliest stages of the project cycle, taking into account the following basic principles: （1）Involuntary resettlement should be avoided where feasible. （2）Where population displacement is unavoidable, it should be minimized by exploring all viable project options. (3) If individuals or a community must lose their land, means of livelihood, social support systems, or way of life in order that a project might proceed, they should be compensated

17 and assisted so that their economic and social future will generally be at least as favorable with the project as without it. Appropriate land, housing, infrastructure, and other compensation, comparable to the without project situation, should be provided to the adversely affected population, including indigenous groups, ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources taken for the project. (4) Any involuntary resettlement should, as far as possible, be conceived and executed as a part of a development project or program and resettlement plans should be prepared with appropriate time-bound actions and budgets. Resettlers should be provided sufficient resources and opportunities to reestablish their homes and livelihoods as soon as possible (5)The affected people should be fully informed and closely consulted on resettlement and compensation options. Where adversely affected people are particularly vulnerable, resettlement and compensation decisions should be preceded by a social preparation phase to build up the capacity of the vulnerable people to deal with the issues. （6）Appropriate patterns of social organization should be promoted, and existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible. Resettlers should be integrated economically and socially into host communities so that adverse impacts on host communities are minimized. One of the effective ways of achieving this integration may be by extending development benefits to host communities. (7)The absence of formal legal title to land by some affected groups should not be a bar to compensation. Affected persons entitled to compensation and rehabilitation should be identified and recorded as early as possible, preferably at the project identification stage, in order to prevent an influx of illegal encroachers, squatters, and other nonresidents who wish to take advantage of such benefits. (8) Particular attention should be paid to the needs of the poorest affected persons including those without legal title to assets, female-headed households and other vulnerable groups, such as indigenous peoples, and appropriate assistance provided to help them improve their status.

62. The ADB Policy on Involuntary Resettlement set out principles: the following are relevant for this Project: Where population displacement is unavoidable, a detailed resettlement plan with time-bound actions specified and a budget are required. Resettlement plans should be built around a development strategy; and compensation, resettlement, and rehabilitation packages should be designed to generally improve or at least restore the social and economic base of those to be relocated. Monetary compensation for land alone may not be adequate. Voluntary relocation by some affected persons may form part of a resettlement plan, but measures to address the special circumstances of involuntary resettlers should also be included. Preference should be given to resettlement of people dislocated from agricultural settings unto similar settings. This is particularly important for indigenous peoples whose degree of acculturation to mainstream society is limited. If suitable land is unavailable, other strategies built around opportunities for wage employment or self-employment may be used.

63. There are regulations about the implementation and monitoring of resettlement, the loan party (EA) should report to ADB about the progress of resettlement during the project implementation; and in charge of the monitoring and evaluating of resettlement; ADB will supervise the implementation of re settlement in order to make sure if the implementation matches the resettlement plan.

64. 62. This RP has been prepared based on ADB's Policy on Involuntary Resettlement (1995) and the Resettlement Framework approved by the EA and ADB prior to project appraisal in early 2009.

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7. ENTITLEMENTS, COMPENSATION AND BENEFITS

7.1 Policy and Principles

65. To protect relocated people's legal rights and to guarantee relocated quality of the relocated people are both our country's relevant policy and laws and ADB's resettlement policy for the relocated people. The implementation of this project inevitably needs some land expropriation, building demolition and resident relocation. In accordance with legal regulations concerning land acquisition and relocation by the national and local governments and guiding principles of ADB concerning relocation and resettlement, and especially in order to carry out the construction of the Project, the Project shall be implemented in adherence to improving or not lowering the production conditions and living standard of the affected people. The affected residents are entitled to get compensations from the implementation party that should help the affected residents to resume or improve the level of their income and life.

66. In conformity to the above principles, the Foreign Loan Office of Shaanxi Province, the executing agencies, and Lueyang County Transport Bureau, the implementing unit, together with Shaanxi Provincial Department of Land Resources and other related departments, draw out relative policies and measures in respect of the Project. The standard of output value of Shaanxi Province is being formulated. When the draft is formulated, it needs to be witnessed and revised, and then can be put in practice after the approval of the Shaanxi Provincial Government. Therefore, in accordance with the reality in Shaanxi Province, the project will base on the spirit and demand of Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28) and Notice on Printing the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People's Republic of China (Nov. 3, 2004, Guotuzifa [2004] No. 238) and work out the plan of compensation. If the new policy of Shaanxi Province is put in practice, the project will be based on it.

67. In order to do the land expropriation, building demolition and resident relocation compensation well, the Project will apply the following principles. （1）To make sure the affected individual people can raise, or at least resume, their original production and living level in the shortest time. （2）The compensation of land acquisition, temporarily occupied land, young crops, attached facilities and affected houses should be formulated based on replacement value and considering the affected persons’ opinions. （3）Any damage of villagers’ life and production caused by construction should be paid according to the damage level. The compensation should restore or improve their original life and production level. (4) The farmers who lose their land can get land again by land redistribution at their own village in line with the per capita land. The village redistributes land to every household according to the term “when the country's basic construction needs to expropriate land, to redistribute land according to relevant regulations”. If there is not enough land in their own village, other land can be given to them in the same town or county, but, the land cannot be more than 3000m from their own house. (5）Anyone who lose his house should get a new one, the resettlement site should be around the original site, no more than 1,000 meters at most. The new houses should be built by villagers themselves. However, if there are any difficulties, the local government or village committee should help them. （6）The compensation of all the affected houses and other facilities should be calculated according to the latest price, and without any depreciation.

19 (7) Land expropriation, building demolition and resident relocation compensation should be completed at least one month before the project construction begins. Otherwise, the project cannot begin. (8) In line with the principle of guaranteeing the country's construction land and saving farm land at most, don't occupy farm land as far as possible if deserted land or hillside fields are available. (9) If the land doesn't change its ownership (the land occupied by village public facilities, villager sanitation, potable water facilities), the land will not be expropriated and no compensation will be paid by the government. However, affected households should be compensated in cash or in kind (e.g. land adjustment), by the village collective.

7.2 Compensation Standards

7.2.1 House Compensation

68. Compensation shall be made in accordance with the actual condition of the demolished houses in order to ensure that the demolished households can obtain the houses of the same structure and areas as their demolished ones stipulated in this RP. According to the guide for house relocation settlement and the structure and type of houses, the people affected by house demolition shall be compensated directly, and their previous houses shall not be depreciated; besides, the affected residents are entitled to the construction materials of their previous house.

69. For villagers who lose their houses, the village and township government shall allocate land bases for them to build houses by themselves with the assistance of compensation fees and house removal fees; or they can ask the village and township government to build the house. No matter which way of rebuilding is adopted, the house cannot be demolished until the demolished households have removed to their new houses. In accordance with the assessment and approval of the real estate management bureaus of the county or the city, the compensation standard is as shown in Table 11 below.

Table 11 Rural Housing Compensation Standards

Type Brick and Brick and Concrete wood Unit: RMB/m2 Standard 658 496

7.2.2 Land Compensation Standard

70. Standard for land compensation fee and relocation subsidy – In line with the spirit and requirement of the Decision on Furthering Reform of Land Management of the State Council and the Notice on Printing the Suggestions for Completing Compensation and Relocation System of Land Expropriation (Guotuzifa [2004] No. 238) released by the Ministry of Land and Resources, and the socioeconomic development level and compensation standard in other areas, the compensation standard is a bit lower than the summation of both land compensation fee and relocation subsidy, namely, 30 times of the average output of the land within the project area in the first three years since the land is expropriated. For this area, it is proposed to use the minimum standard of 22 times. The young crops compensation shall be

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calculated according to the maximum of 40% to 90% of the average output of the land with damaged young crops in the first three years. Compensation for orchard, residential base and barren land shall be calculated according to the Implementation of ‘Land Administration Law of the Peoples Republic of China' of Shaanxi Province: compensation for farmland shall be made according to four to six times of the average annual output of the medium-sized arable land in the local county (city or district) with expropriated land in the first three years; land compensation for other lands shall be calculated according to one to four times of the average annual output of the medium-sized arable land in the local county (city or district) with expropriated land in the first three years; relocation subsidy should be calculated as 30%---60% of the medium quality land compensation in the project area; compensation for residential base shall be calculated as 50% of the irrigated land compensation. Shaanxi Foreign Loan Office and Lueyang County Government jointly enact the compensation standard of the Project (see Table 12 and Table 13).

Table 12 Land Compensation Standard Type Irrigated Land Orchard Dry Farmland Housing Land Unit: RMB/mu Standard 8,000 9,000 7,000 4,000 Note: Land compensation and resettlement subsidy are estimated together，housing land and uncultivated farmland does not include resettlement subsidy.

Table 13 AAOV of the Affected Areas

(based on the average of the three years from 2007-2009) Type Irrigated land Vegetable Dry land Housing land land Unit: RMB/mu AAOV 360 415 320 As irrigated land Note: Lueyang County in an area where there is a lot of geologic disasters. Because of the disasters, the output value is only one third as other areas where there is little geologic disasters.

71. According to Article 47 of Land Administration of the People’s Republic of China and the relevant regulations released by Shaanxi Provincial People's Government, the formula for calculating the compensation fee for arable land is as follows:

Q1=A•a (e.g.: irrigated land 8,000 ≌360 × 22)

Among which: Q1 = land compensation fee A = average output of the land in the first three years since the land is expropriated a = combined multiple of land compensation fee and relocation subsidy=22

7.2..3 Compensation for young crops

21 72. Compensation for young crops is calculated according to the average annual output value of the land before expropriation in the first three years. The standard is RMB 500 yuan per mu.

7.2.4 Other Affected Facilities

73. After the assessment of the relevant authorities, compensation fee for the affected auxiliary facilities shall be fulfilled according to alternative prices of the facilities. See Table 14 below for the compensation standard.

Table 14 Affiliated Facilities Compensation Standard Grown Young fruit Grown Young Wall WC tomb fruit tree tree tree tree (m) 10--30 5 10--20 5 60-150 80-200 200

74. All specialized facilities, including facilities for hydraulic work, power and communication, as well as yards, pools and vault storeroom, shall be compensated according to relevant regulations of Shaanxi Provincial People’s Government and their real construction cost or alternative value.

7.2.5 Evaluation of the Compensation Standard

75. According to the spirit and requirement of the Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28) and the Notice on Suggestions for Completing Compensation and Relocation System of Land Expropriation (Guotuzifa [2004] No. 238) released by the Ministry of Land and Resources, the compensation standards for houses, affected land and young crops of this Project are proposed by Lueyang County Post- disaster Reconstruction Transport Project Office, namely the implementing agency, together with administration of land and resources, and administration of statistics, in the light of the social and economic development strength and features within the Project area of Shaanxi province, incorporating the part of suggestions put forward by every districts when they enact the uniform standard for annual output. First, the land compensation standard increases greatly than before. For example, the land compensation standard was 4000---5000 yuan per mu for the other transport projects in Lueyang county, but the compensation standard for this project increases 80% than before. Second, the standard shows the consistency and continuity of the policy. Because the standard will be adopted in other transport projects in Lueyang county, the project affected persons will understand the policy. Third, the compensation standard is based on the socioeconomic investigation to the affected area and with incorporation of the suggestions of the local government and residents, so it is possible that the affected persons will support and cooperate with the project. The compensation standard of housing and ground attachment is formulated by the project implementing organ and the professional assessment organ according to the replacement cost and local market price of the housing and ground attachment, and the standard is approved by local government and the provincial project implementing organ.

7.2.6 Payment of Compensation Fee

76. Compensation fee for land expropriation takes a part in the total investment of the Project, thus it has already been considered in the budgetary estimation. All the compensation fees are allocated by Shaanxi Foreign Loan Office; they shall be given to the affected collectives and people, and no one shall intercept or embezzle them. The land expropriator shall sign contract with the previous owner of the expropriated land; the

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compensation fee shall be drawn with the signature of the payee; and all the materials shall be kept in archives.

77. Land compensation fee belongs to rural collective economic group, thus it shall be given directly to the village committee in a bid to develop production and restore the economic strength of the affected people. The affected people are entitled to discuss and participate in the economic restoration plan.

78. Compensation fee for house, specialized facilities and auxiliary facilities, as well as young crops shall be directly paid to the entitled people.

7.2.7 Temporary occupied land

79. Temporary occupied land is the occupied road, material ground, construction ground occupied by construction unit during the project construction. The compensation of temporary occupied land is the average annual output value of the occupied land times the occupied years. When returned, the land should to be restored to the original state by the contractors, or paying some fee to the farmers for recovering it.

80. The topsoil of the occupied land should be stored until the occupied land is due. Then the construction unit should renovate the land to the state that the land so it can be planted, and then return it to the state that the land can be planted, and then return it to the affected individuals.

81. About temporary occupied land, there is only compensation, but no resettlement or permanent impacts. The compensation standard is RMB 1000 yuan per year.

7.2.8 House Relocation and Transition Subsidies

(i）The affected people shall be paid the house relocation and transition subsidies in addition to the house compensation fee according to the standards, including temporary transition fees and house removal fee . A．The standard of temporary transition fee a. RMB 500 yuan every month each family for temporary housing. b. if the implementation agency provides the transition house or the old house is demolished after the new house is ready, no transition fee will be paid. The payment time is no longer than the production rehabilitation time. B. The house removal fee RMB 500 yuan for each household or individual business owner. If the implementation agency provides vehicles for removing, no removal fee will be paid.

7.2.9 Compensation scope of land acquisition and resettlement

82. The Project will utilize 33.63 mu of land, so 242 villagers from 69 households at 15 villages of 4 towns in Lueyang County will be affected by land acquisition. The 15 affected villages will redistribute the land, so all the affected villagers will get similar land. The project will demolish 605 m2 of buildings, which will affect 91 persons from 23 households. The affected villages will allocate housing land for them to relocate nearby free of charge. The total compensation fee for land acquisition and resettlement of the project is estimated to be RMB 813,062 yuan.

23 7.3 Payment and monitoring of village-level land compensation

83. The construction unit will pay land compensation and resettlement subsidy of the project construction through administrative procedures. According to the formulations of 《 The Land Administration Law of the People’s Republic of China》, the land compensation is paid to the land owners or land users, and resettlement subsidy is paid to help settle down the rural residents after the land expropriation. So, the land compensation should be arranged and spent by the village committee; and the resettlement subsidy is arranged and spent by people who help settle down the rural residents. Given the readjustment approach will be adopted within the affected village, the affected household will receive new lands from the village collective. Therefore, both the land compensation and resettlement subsidy will be paid to the village collective and used for community purposes. The transfer, usage management and monitoring of village-level land compensation and resettlement subsidy will be undertaken as per following procedure:

7.3.1 Inspection and preparation before transferring the fund

84. According to society survey data, the affected village should hand in the results of the detailed affected situation measurement survey to higher level Resettlement Arrangement Office for inspection.

85. County project office and independent monitor, and local government in affected villages should train village-level management department, and guide them to work out a development program which is suitable for the local reality and using plan of resettlement fund, according to local social economy development reality and prospect.

86. Relevant departments should guide, inform, consult and negotiate with APs and the village-level management to work out the utilization plan of village-level fund and report it to county-level project office for inspection.

87. County-level Resettlement Arrangement Office inspects and gives guidance to perfect the utilization plan of the village-level fund. If the using plan of fund is not available, the fund will not be transferred.

7.3.2 Management and monitoring of fund utilization

88. County-level Resettlement Arrangement Office inspects and confirms the utilization plan of village-level resettlement fund, and then transfers compensation and resettlement fund according to the village bank account.

89. Village committee will report utilization situation of compensation and resettlement fund to town and County Resettlement Arrangement Office every month. And county-level Resettlement Arrangement Office reports to the municipal Resettlement Arrangement Office every three months.

90. Besides monitoring fund utilization situation of village-level through report forms, district project office should inspect on site the development of agriculture infrastructure or enterprises which use compensation or resettlement fund.

91. Independent monitor will verify the utilization situation of compensation and resettlement fund of village-level units, evaluate the using effect of fund, offer advice to village-level units, and provide feedback monitoring to all-level project offices. Investigations

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will include sampling survey, site inspection, and discussions with affected individuals.

7.3.3 Auditing

92. The project implementation agencies will be audited by auditing authorities according to our country's policies. The main content of auditing is land expropriation, housing demolition and resident relocation fund.

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8. HOUSE RELOCATION AND INCOME RESTORATION

93. The objective of the resettlement and rehabilitation plan is to guarantee the affected houses/infrastructures can be restored, the affected laborers can find job again, and the affected persons' incomes and living conditions can be improved or at least as well-off as they would have been in the absence of the project. According to this target, the most important economic rehabilitation measures is to redistribute land fairly, to work out fair distribution plan of the contracted land, and other economy economic resume restoration measures.

8.1 Rehabilitation Planning Principles

(1) For the occupied land for construction, the project implementing agency should compensate according to the laws. （2）The construction unit should compensate according to replacement cost of the houses to be demolished by the project. The local government should distribute land for housing plots free of charge so the affected households can build new houses themselves. (3) For the affected special-purpose facilities, the construction unit should pay the fund, and the township and county governments will help build new facilities; or compensate according to replacement value after the legal house appraisal company provides an assessment. (4) For all the attached facilities, the construction unit should compensate according to the market or replacement value, whichever is larger. For the trees which can be transplanted, people can transplant them in suitable season before the construction demolition begins. (5) To redistribute land seriously in consultation with affected villagers. To sign new land contract if the land is acquired. (6) Guide the affected individuals to join non-agricultural industry to raise their labor income. During the project construction, guide the affected persons, especially the poor, to provide labor service for construction. When the project finishes, the project should employ local persons who have priority to work for the project maintenance.

8.2 Land Redistribution and Income Restoration Measures

94. In general, for the 15 affected villages, the farmland per capita before land acquisition is 2.37 mu. The project will acquire 24.43 mu land, accounting for 0.078% of the total 31,256 mu farmland. The farmland per capita after land acquisition is 2.365 mu, and the loss of farmland per capita is 0.005 mu. Second, for the 69 households affected by land acquisition, the households who lose on average 0.5 mu of farmland. According to annual output value per mu 360 yuan in 2009, for 0.5 mu land the value is only 180 yuan, and the loss per capita is 41.9 yuan, accounting for 2.4% of the annual income per capita 1719 yuan. So, from the general affect and the direct affect to the affected persons, the above data show that the land acquisition affects the villages a little and the 69 households moderately.

95. For the 15 affected villages, because of a little acquired land, every village can redistribute farmland and all the affected persons can get farmland similar to the acquired land. At present, every village confirms above principle through villagers conference and put forward plan for land redistribution. For the new plan, the village and the villagers will sign new contract, so the newly redistributed land to the affected persons will be protected by the law.

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96. During the construction of the project, in order to maintain and raise villagers’ living level, the affected villages and the implementing agency reach an agreement. The implementing agency promises that once the project begins, the villagers can take part in the construction if they are willing to, including: (1）In the same condition, the affected villagers have priority to take earthwork, or supply food and drink. （2）When the project completes, the project administrating agency will employ the affected persons to maintain the road and plant trees, etc. The wage or salary will be according to the Law of Labor. (3）In order to take affected women into consideration, the portion of women labor should not be lower than 30% in the construction of the project.

97. In addition, systematic skill training will be provided to the affected families. Based on the need of local industry structure, local governments will provide training on planting, agricultural machinery and marketing in order to make each family gain relevant employment skills. By the end of 2011, when the project will have finished, the affected persons should receive skill training at least three times.

Table 15 Skill Training Plan Schedule Training Plan First half of 2011 The representatives of affected persons go outside to study rural economic development project First half of 2011 Free lecture on repairing the agricultural machinery (3—5 days, for 50 persons) Second half of 2011 Skill training on poultry and gardening skill (3—5 days, for 50 persons) In 2011 A skill training according to affected persons' request

8.3 House Relocation

98. During the implementation of the project, there are 605 ㎡ of buildings need to be demolished, and 91 villagers in 23 households will be affected by the demolition, accounting for 0.87 and 0.83 of the households and persons in the affected villages. In order to relocate as well as possible, every affected villagers’ committee negotiated with the affected persons and decided to distribute housing land in the affected persons’ own villages, so the affected persons can still live in their own village. The housing land given to the affected households is at least the same area as the average housing land area. The standard to choose new housing land is to concentrate in the village in order to be easy for daily life and business, or to be near the highway in order to more convenient for the transport, medical care and children’s education. Because our country is developing “New Rural Area” Project, the newly-built houses of the affected persons can be part of the construction of New Rural Area Project. In a word, the living condition of the affected persons will be better than the original ones. So, the construction of the project will not bring bad effect to the affected households.

8.4 Economic rehabilitation program for vulnerable groups

99. For the vulnerable groups, such as the aged, the disabled, the poor and families lacking labor, the project will provide added financial and technical assistance as necessary. For these vulnerable groups, a series of measures will be implemented to decrease the adverse effects, to assist them to relocate and rehabilitate their household economy. In addition, a special rehabilitation fund, which is 1% of the total resettlement budget, will be spent on the implementation of the measures for the vulnerable groups. These are: (i) To provide special consultation; （ii） to choose housing land first; (iii) to send labor to help

27 build new houses; (iv) to give extra resettlement and rehabilitation subsidy; (v) to give priority to get other economy rehabilitation measures; and (vi) the poor, the disabled, the aged and women will get special attention and priority to receive special education and skill training.

100. The implementing agency and relevant administrations have reached an initial agreement on the above principles. The relevant local government agencies also promise to assist the vulnerable groups to rehabilitate their economic and living conditions according to the plan.

8.5 Special Measures for Women

101. China has put the Protection Law of Women and Children of PRC in practice, which means that Chinese government takes women's rights and interests seriously. The law regulates that men and women have the same rights, women should not be looked down upon, and women's rights and interests should not be deprived.

102. The project takes women's rights and interests seriously. In order to protect affected women's rights and interests, the project puts forward the following measures: （i）In the process of resettlement and economic rehabilitation, women;s opinions on choosing new housing site and economic rehabilitation programs will be taken into account. In order to fulfill the target, the representatives of the Women’s Union should have a meeting with affected women to get the information on women’s concerns and demands. （ii）Women’s low training and education level limits their chances to choose way to get more money. The choice of profession and livelihood is vitally important for women. In order to provide convenience of income and life rehabilitation for the affected persons, the project proposes several skill training programs. The project will give 40—60% training chances to affected women. The Women's Union and the Labour Bureau in affected area should assist to formulate and implement training program. (iii) Besides the rights and interests formulated by the laws of China, the project will provide special assistance to the women, such as to propaganda on the Marriage Law of PRC and the Protection Law of Women and Children of PRC, to provide medical care to the affected women and elderly, and to promote health condition of affected women and children.

8.6 Rehabilitation program of special facilities

103. The affected special facilities are electricity line and telecommunication line. In the early stage of feasibility study, the survey of impact on residents from the relocation of the affected special facilities has been done. The project plan takes their opinions and suggestions into account after consulting with affected villages’ leaders, relevant agencies and affected families. For example, when rebuilt, the electricity line and telecommunication line poles can be raised; the relevant agencies should design and rebuild the electricity facilities and telecommunication facilities if necessary.

8.7 Entitlement Matrix 104. The entitlements of the affected persons are summarized in Table 16.

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Table 16 Matrix of affected persons’ compensation rights and relocation policy

Type of loss Applicability Person/collective Number of Compensation policy Compensation Implementing with rights person/collective rights item with rights

Permanent Land within the a) villages owning the a) 15 affected villages a, land compensation paid to Compensate in full to The village committee loss of implementing line land b) 242 persons in 69 villages persons and villages who will farmland b) villagers using the households who lose b. redistribute land to APs at own or use land at 22 confirm losses and payments. land land affected villages; times the average annual Township authorities c. compensate in cash for trees output value (AAOV), the approve and monitor and crops according to policy distribution between those who own or lose land will be decided by the villagers conference Temporary loss of Land used as work site Villagers using the land Defined during Compensate in cash according 2 times AAOV to Use is approved and land within or near implementing construction to loss every year, recover as households that contract the monitored by township area before construction, APs’ life at land, or to the collective if officials. Maximum least as before common land. Restoration period is 2 years. Land of land by the contractor to occupation must obtain its previous or higher quality the consent of the when land is returned. user/owner. Vacant or wasteland should be utilized as much as possible. Scattered trees on Loss of Cash compensation affected land Owner of Full payment Small trees will be scattered based on replacement use affected trees Directly to owners replanted. trees value permanently or temporarily Loss of housing Housing site and property Persons and 91 persons in 23 Compensation in cash to APs, Compensate in cash to Village and APs decide site /property within implementing area households who households including housing site and owner of housing, new housing site, the or affected by the project lose housing housing, 500 yuan transition feecompensation of housing construction unit is in every month and 500 yuan site to village, the villages charge of smoothing removal fee for every household the site and connecting redistribute housing site infrastructure

Loss of non- Non-farmland with the projectVillages area owning land 15 affected villages Compensate in cash Village Compensate farmland according to RAP

45 Affected special All facilities within Owners of all owners of all Compensate in full price Compensate in full price facilities project area facilities facilities according to market according to market

Vulnerable Aged, weak, women, Persons or The project sets up a priory to getting Relevant group children, disabled, poor, households who are special fund which is 1% of compensation and government supplies those who cannot work or vulnerable group the budget to help the assistance under the assistance lack of labor force etc vulnerable group together same condition with towns and villages

Note: all the policies of the project will be carried out after official approval.

46 9. RESETTLEMENT BUDGET AND FINANCING PLAN

9.1 Cost estimates

9.1.1 Basic costs

105. The land acquisition, housing demolition and resident resettlement compensation is part of the total investment of the project construction and is included in the project annual investment plan. The total resettlement cost is RMB 1.054 million yuan, among it, the basic cost is RMB 747.8 thousand yuan (see Table 17).

9.1.2 Contingency cost

106. The unforeseen physical and price increases in land acquisition, housing demolition and resident resettlement compensation is budgeted as the contingency cost, which equals 30% of the basic cost of land acquisition, housing demolition and resident resettlement compensation of the project.

9.1.3 Management cost

107. The administration cost equals 2.8% of the basic cost of land acquisition, housing demolition and resident resettlement compensation. Among it, the province, county can use 1% respectively, town and villagers' committee use 0.8% respectively.

Table 17 Land Acquisition and Resettlement Budget Item Total (RMB) A. Basic Costs 747758 1. Land Compensation 211270 2. farmland reclamation fee 81104 3. farmland occupation tax 32442 4. housing compensation 339427 5. other attachments compensation 48350 6. young crop compensation 12165 7. removing compensation 11500 8. transition subsidy (estimated reward) 11500 B. Administration Costs (2.8% of Basic Costs) 20000 C. Service Charge (3% of the Basic Costs) 22433 D. Monitoring and Evaluation Cost 30000 E. Plan make-out cost 10000 F. Contingency Costs (30% of Basic Costs) 224327

Item Total (RMB) Total 1054518

Table 18 Land Compensation Breakdowns Type Irrigated Dry Vegetable Housing wasteland Total Land Farmland land Land Quantity (mu) 0.52 22.19 1.62 9.3 204.99 238.62 Compensation 8000 7000 9000 4000 0 Standard (CNY) Compensation Costs 4160 155330 14580 37200 0 211270 (CNY)

Table 19 Housing Compensation Breakdowns Type Brick and Concrete (m2) Brick and tile (m2) Total (m2) Quantity (m2) 240 365 605 Compensation Standard (CNY/m2) 658.70 496.82 Compensation Costs (CNY) 158088 181339 339427

Table 20 Ground Attachment Breakdowns (1)

Type Fruit tree Grown tree Young tree enclosure Water closet Tomb Total

Quantity 122 181 764 54 5 32 Compensation 10-30 10-20 5 60-150 80-200 200 standard (CNY) Compensation 3660 3620 3820 8100 1000 6400 26600

Table21 Ground Attachment Breakdowns (2)

Type Power Telecommuni- Power Optical Channel Water Water Total Cable cation Cable Cable cable(m) (m) Well pipe(m) (m) (m) Pole Quantity 600 420 10 500 340 5 43 Compensation 600 840 4000 1500 13600 350 860 21750 (CNY)

Table22 Young Crop Compensation Type Young crop Quantity (mu) 24.33 Compensation Standard (CNY) 500 Compensation (CNY) 12165

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9.2 Fund Flow

108. Land acquisition, relocation compensation cost shall be paid directly to villager's committee and affected individual by the District Project Office after the fund is paid to the bank and the County Project Office by the implementing agency.

Compensation fund process of land acquisition, housing demolition and resident resettlement

Provincial and County government fund

bank

County project office

Villagers’ Villagers Relevant committe (house, enterprise e (land trees etc) s compens (facilities a-tion compens a-tion

9.3 Fund sources and use of contingency cost

109. The land acquisition and resettlement will be financed from provincial special subsidy and fund transferred from County Government. The implementing agency has the right to use the contingency cost in the budget. The County Project Office should report it to the Provincial Development and Reform Committee and Provincial Bureau of Treasurer, and after their approval, they will be added to the budget. The procedure will take no more than one month.

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10. INSTITUTIONAL ARRANGEMENTS

10.1 Coordination agencies

110. In order to strengthen the leading of the post-disaster reconstruction, Shaanxi Provincial Government issued Note on Shaanxi Province Post-disaster Reconstruction Overall Plan (Shaanzhengfa 2008 No.51), at the same time, the Post-disaster Reconstruction Leading Group, which is in charge of implementing of the reconstruction, was set up. The project is directed by the office (Shaanxi Provincial Project Office: in Shaanxi Using Overseas Loan Office) of the Leading Group, which is in charge of organizing, applying for ADB's loan, coordinating relocation, monitoring and inspecting the payment of usage of the compensation for land acquisition and resettlement.

10.2 Implementing agency

111. (1) On December 31, 2008, according to the spirit of the relevant documents of Shaanxi Provincial Government and Hanzhong City Government, Lueyang County Post-disaster Reconstruction Leading Group becomes the implementing agency of this project. Hanzhong Lueyang County Transport Bureau set up Hanzhong Lueyang County Post-disaster Reconstruction Traffic Project Supported by ADB's Emergency loan Office which is the project implementing agency and from then on, the staff began to work.

112. The project implementing agency will be in charge of organizing and coordinating land acquisition and resettlement. The duty is as follows:

（i）According to ADB’s and our country’s policy and laws, in charge of checking the quantity of affected land, removed buildings, special-purpose facilities and attached materials, in charge of assessing and formulating compensation standard of affected special-purpose facilities, in charge of making up the project resettlement plan, and in charge of signing the contract on land acquisition and resettlement with the affected villages and persons. （ii）In charge of surveying the land acquisition, listening to the opinions of affected people, accepting all kinds of complaints and requests, and dealing with them in time. (iii) In charge of the concrete affairs of compensation of land acquisition, assuring the building of new houses and the timely progress of all compensation and of charge of payment and utilization of the compensation of land acquisition and removing. (iv) In charge of reporting the project process to the provincial project office, and handing in relevant statistical data.

10.3 Village Committees and Village Groups

113. Authorized by villagers' convention, affected villagers' committees and villager groups are in charge of right use of resettlement compensation and payment to the affected persons; to take part in the socio-economic survey and project impact survey; assist to work out the “Land Acquisition, Relocation and Resettlement Plan”; to organize the villagers to take part in the project and to explain the relevant policies; to implement, check, supervise and record land acquisition and resettlement activities in their village; to organize villagers to build new houses and help to get building approvals; to choose resettlement place and distribute housing land for relocated families; to adjust land distribution and implement economy rehabilitation; to supervise land acquisition, housing and attached facilities demolishing and reconstruction; to deal with

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grievances and appeals, to investigate and fulfill the relevant work; to help relocated persons to solve all the problems during relocation; to report the progress in land acquisition and resettlement; and to help vulnerable families to relocate.

10.4 Internal supervision agency

114. Hanzhong City Lueyang County Post-disaster Reconstruction Traffic Project Supported by ADB's Emergency Loan Office set up an internal supervision office for land acquisition and resettlement, consisting of 3 persons. The duty of the office is to guarantee all the land acquisition and resettlement officers can fulfill their tasks, carry out the terms in “Land Acquisition, Relocation and Resettlement Plan”, and guarantee all the affected persons can get their rights and interests.

115. The organization is as follows:

Organization for the Project Land Acquisition and Resettlement

Shaanxi Provincial Government Post-disaster Reconstruction ADB Leading Office

Lueyang County Project Office External supervision (3 persons) (3 persons)

Internal supervision (2 persons)

Affected village (2 persons each village)

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11. IMPLEMENTATION SCHEDULE

115. The land acquisition, housing demolition and resettlement plan implementation will begin in February 2011, and will be finished one month before the construction. The plan is divided into 4 stages: the first, preparation; the second, implementation; the third, rehabilitation; and fourth, inspection/monitoring/assessment (internal and external monitoring will be in the all implementation process).

11.1 Preparation stage (January 2009---January 2011)

(1) To set up project administration unit. This job is undertaken by Hanzhong City Lueyang County Post-disaster Reconstruction Traffic Project Office. (2) To make use of newspapers, radio, TV and poster to make the project known, in order to get understanding and support of affected collective, individuals and the society. The job to explain the policy of resettlement compensation is undertaken by Hanzhong City Lueyang County Post-disaster Reconstruction Traffic Project Office. （3）To erect boundary markers of the occupied land. To mark the boundary of the occupied land and leased land, measure and erection of the boundary markers are undertaken by the Project Office and affected villages. （4） To measure and check kind and quantity of affected land, housing and other facilities in site. This job is undertaken by the Project Office and affected villages.

11.2 Implementation stage (February 2011—May 2011)

(1) The County Project Office signs an agreement on land expropriation, housing demolition and resident relocation compensation with affected villages' Villagers' Committee and affected villagers. (2) The County Project Office reports documents of occupied land. (3) The implementing agency transfers housing compensation through the Construction Bank of China. (4) Affected villagers, together with the County Project Office and villagers committee, choose place, identify house structure and begin to build. (5) Land compensation and resettlement subsidy should be paid to village committee directly. Housing compensation should be paid directly to affected persons. Land reclamation compensation should be paid to land administration bureau to reclaim new farmland. (6) The County Project Office transfers land expropriation, housing demolition and resident relocation compensation to town and village committee though the Construction Bank of China. (7) Both the County Project Office and village committee redistribute land to those who lose land (at the same village or nearby). (8) The County Project Office pays housing, young crops, all kinds of attached facilities, transition subsidy, and removal subsidy to affected persons. (9) The County Project Office pays infrastructure construction subsidy of new resettlement and help to construct infrastructure. (10) Demolish old houses when new houses are built. The County Project Office are in charge of demolishing affected ground attachment and transferring construction land to the project construction unit after finishing the land expropriation, housing demolition and resident relocation.

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11.3 Rehabilitation stage (June 2011---- May 2012)

The main tasks are: (1) Adjust land, (2) Implement economic recovery plan and measures, (3) Affected individuals' skill training, and (4) Ensure new houses are completed in a timely manner.

11.4 Monitoring and Evaluation stage (February 2011—December 2012)

116. The internal supervision is a continuous work, which begins when the land acquisition begins and finishes when the project completes. Relevant local agencies can inspect and supervise the work of the project management unit. They will set up a unit to undertake daily inspection and supervision in order to guarantee the implementation according to RP terms.

117. The first job of external supervision is socio-economic baseline survey (February 2011), and will continue annually until the project completes, and give an assessment of the resettlement implementation.

118. The contents of the monitoring and evaluation stage is: (1) Payment situation of all affected individuals and collective. (2) Condition of new housing in the new sites. (3) The payment of all kinds of subsidy to the affected individuals. (4) Infrastructure situation in new sites. (5) The implementation of economic recovery plan and measures for affected households, including land adjustment, job opportunities and skill training. (6) Deal with and solve the opinions of land acquisition, housing demolition and resident resettlement from the affected individuals.

Table 23 Schedule of land acquisition, housing demolition and resident resettlement Timing Organ in charge Work contents 2009.1-2011.1 The County Project · set up project office Office · consultation · engage external Monitor · socio-economic survey 2009.12-2011.1 The County Project · work out Resettlement Plan Office · ask for opinions of government and affected individuals · consultation further · publish《information handbook》 2010.5-2011.1 The County Project ·erect boundary markers Office ·measure and check affected quantity Affected Villages’ Villagers’ Committee 2011.2 The County Project ·sign compensation contract Office ·go through formalities of occupied land Affected Villages’

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Villagers’ Committee 2011.2-5 The County Project ·transfer land compensation Office ·transfer all kinds of compensation to the Affected Villages' affected individuals Villagers' Committee 2011.2— The County Project ·inspect the work process Office ·supervise and inspect payment of Independent supervisors compensation 2011. 2— The County Project ·receive all complaints Office ·inspect usage of the fund Independent supervisors ·internal and external supervision ·track survey to the affected villages ·assess the land acquisition, housing demolition and resident resettlement

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12. MONITORING AND EVALUATION

119. In order to guarantee the smooth process of the land acquisition, housing demolition and resident resettlement compensation, there are two kinds of supervision to be carried out simultaneously by two separate organizations in different ways: the first, an internal supervision system by the government to monitor according to RP terms in the angle of administrative management; and the second, an independent external monitoring and evaluation system by sociologists to assess whether resettlement objectives have been met.

12.1 Internal Supervision

12.1.1 Contents of internal Supervision

120. The contents of the internal supervision consist of two aspects: （i）the supervision to the relevant area administrative management department, including project management organization of county and village government; and （ii）the supervision of the compensation for the affected individuals according to RP terms.

121. The basic contents of the work： a. If resident resettlement is carried out according to RP terms b. If the affected individuals get enough compensation according to the formulations. c. If more job opportunities are provided to the local residents taking advantage of the project implementation. d. If the affected individuals are satisfied with the new land for housing. e. If the affected individuals are satisfied with the compensation program. f. If the living condition of the affected individuals are safe and proper. g. If the affected individuals get the redistributed land according to relevant regulation. h. If the effected individuals, who lose land, are satisfied with the quantity and quality of redistributed land, living condition and production condition. i. If the affected individuals are satisfied with their income change and rehabilitation situation after land acquisition. j. If the affected individuals are satisfied with the project staff's working method, attitude and effect. k. If the information, notification, consultation and coordination are given to the effected individuals according to the formulations. l. If the expense is recorded in written form, especially the description of the cause of overspending and resource of supplement. m. If the effected individuals are permitted to appeal according to the formulations. n. If the effected individuals or enterprises and satisfied with the results that some staff get punishment because of their possible activities against the law. o. If the implementation activities are completed in time which should be completed a month before the project begins.

12.1.2 The method of internal supervision

122. Different content of supervision is carried out in different ways. The local project management organization should provide all kinds of data about land acquisition, housing demolition and resident resettlement compensation:

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12.1.3 The implementation of the internal supervision

123. According to land acquisition, housing demolition and resident resettlement compensation program, the internal supervision is at both the preparation stage and implementation stage.

12.1.4 The responsibilities of supervision agencies

(1) The supervision agencies should investigate the compensation standard, compensation amount and scope carried out by the implementation agency, and the right to assess, investigate and supervise the finished work or finishing work done by county-level project agencies （2）The supervision agencies should report or rectify the quantity, unit, and slope which doesn’t accord with the formulations. Furthermore, the supervision agency also has the right to announce to the public what is not correct after rectifying. （3）The supervision agencies should report and to help deal with some fierce problems put forward by effected individuals or enterprises or announce it to the public. （4）The supervision agencies should prosecute to the local judicial office, if any staff member hurt any individual’s or enterprise’s benefit taking advantage of his power. （5）The supervision agencies should announce any incident which has been dealt with but didn’t get enough effect law.

12.1.5 Procedure and demand of supervision agencies

124. The supervision agencies should combine the responsibility to the government with the responsibility to the affected individuals. They should summarize experiences and lessons, and make a work record(log). The supervision agencies can have a meeting at regular or irregular intervals and report relevant circumstances. Each season, the supervision agency should give a written report to the project implementation organization about the supervision work and dealing with the supervised incidents. Every three months, a brief progress report of all the Project supervision work should be submitted to ADB; summary of progress on resettlement should be included as applicable.

125. The county-level project management office should collect supervision data from the town (village)-level office and the monthly sample investigation. These data should contain both household level and village level data. The collected data of every relevant individual/household should be stored electronically and revised after every supervision investigation.

126. The internal supervision report will be discussed in every regular meeting of the project implementation agency.

12.2 External monitoring and evaluation

127. In order to do the land acquisition, housing demolition and resident resettlement compensation well, the project needs not only the internal supervision, but also the external supervision by a qualified and independent monitor. The project executive agency, Shaanxi Province Using Overseas Loan Project Office has decided to entrust Shaanxi Kexin Consultant Company (SKCC) to undertake the external supervision of the land acquisition, housing demolition and resident resettlement compensation of the Project, including other

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subcomponents of the Project.

12.2.1 The contents of monitoring and evaluation

1）To check if the land acquisition, housing demolition, compensation and residential relocation and economic rehabilitation is carried out according to RP terms. 2 ） To ensure if the activities are completed that should be completed before the construction. 3）To determine the general target of land acquisition, housing demolition and resident resettlement compensation and implementation degree of RP. 4）To determine if the compensation amount matches the property loss and whether the affected individuals can resume their original income levels. 5 ） To determine how satisfied the affected individuals are with the land acquisition, housing demolition, compensation, residential relocation, economic rehabilitation and living conditions. 6） Satisfaction degree of affected individuals about land acquisition and resettlement and quality and quantity of redistribution land. 7）Satisfaction degree of affected individuals about location of resettlement and difference of environment with the original location. 8）Satisfaction degree of affected individuals about compensation standard and method of dismantled houses, buildings, ground attachment. 9） Satisfaction degree of affected individuals about subsidy standard and amount in resettlement. 10) In the course of acquisition and resettlement, whether correlative institution and local government consult fully with and assist affected individuals and whether any forced/rushed dismantling and resettlement happened. 11) Supervision on fund flow of land acquisition and resettlement.

12.2.2 Monitoring Approaches

1 ） To inspect in the land acquisition, housing demolition, compensation, residential resettlement and economic rehabilitation progress and listen to review reports prepared by the local project implementation agencies. 2）The survey measures to the affected individuals are based on sampling and tracer surveys. According to some quantified data such as land area, compensation standard, compensation amount, resident's income, questionnaire survey is adopted and the sample households should not be lower than 20% of relocated households and 10% of the total affected households. The obtained data of the sample households should be stored for the purpose that it can be compared with a new one. 3 ） For some qualitative data such as resident’s opinions, attitude, complaints and activities, the random interview or focused group discussions can also be used for supervision. The ways of asking questions should be scientific.. 4）Random sample survey in regular and irregular intervals: mainly adopt symposium and official family visit to understand the affected individuals’ problems and the causes in the process of land acquisition, housing demolition and resident resettlement compensation and understand the real information.

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12.2.3 Schedule of Monitoring, Evaluation and Reporting

128. The independent monitor – SKCC -- shall begin from February 2011 and complete the final evaluation by the end of the Project construction (i.e., 2012). 1）SKCC will first conduct the Baseline Survey and prepare a report for submission to the EA (BMG) and ADB by end March 2011. 2）After the baseline survey, SKCC will conduct investigations and survey every six months during peak time of resettlement implementation; thereafter, evaluations will be conducted once each year. ------Inspect and supervise the realization of the previous issues, recommended actions and follow-up on the results. ------Carry on according to all the terms of this supervision outline. 3）If the supervision agencies think it is necessary, SKCC can inspect and survey more frequently. 4）The external supervision agencies should record every supervision activity in detail and prepare a written report for submission to the EA and ADB. The contents in the report should include the experiences in the land acquisition, housing demolition compensation, residential resettlement, economic rehabilitation, living conditions, and the existing or remaining problems. The executive agency should find way to solve the existing problems to improve their work after they receive the report. 5）After resettlement is completed, SKCC should prepare a complete, correct, detailed and objective completion report. Then, the company should discuss and exchange ideas with the EA; SKCC should then finalize and submit the report to ADB and prompt the construction unit to address any remaining problems.

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