Lanzhou-Chongqing Railway Development – Social Action Plan Monitoring Report No

Home , Anning District, Dingxi, Gansu, Hechuan District, Jialing District, Jingbian County

Social Monitoring Report

Project Number: 35354 April 2010

PRC: Lanzhou-Chongqing Railway Development – Social Action Plan Monitoring Report No. 1

Prepared by: CIECC Overseas Consulting Co., Ltd Beijing, PRC

For: Ministry of Railways

This report has been submitted to ADB by the Ministry of Railways and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

ADB LOAN Social External Monitoring Report –No.1

The People’s Republic of China ADB Loan

LANZHOU –CHONGQING RAILWAY PROJECT

EXTERNAL MONITORING & EVALUATION OF

SOCIAL DEVELOPMENT ACTION PLAN

Report No.1

Prepared by

CIECC OVERSEAS CONSULTING CO.,LTD

April 2010 Beijing

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TABLE OF CONTENTS

1． MONITORING AND EVALUATING OUTLINE……………………….………………………3 1.1 THE PROJECT PROMOTED SOCIAL DEVDLOPMENT ALONG THE RAILWAY OBVIOUSLY…………………………………………………..………….…3 1.2 THE PROJECT PROMOTED THE POOR PEOPLE’S INCOME AND REDUCED POVERTY……………………………………………………………...………………….5 2. PROJECT CONSTRUCTION AND SOCIAL DEVELOPMENT..……………………….6 2.1 MACRO-BENEFIT OF THE PROJECT………………...…………………………….7 2.2 THE EXTENT OF LAND ACQUISITION AND RESETTLEMENT OF PROJECT AND RESETTLEMENT RESULTS…………………………………………………....8 2.3 INFLUENCE AND PROMOTION OF PROJECT CONSTRUCTION AND LOCAL ECONOMICDEVELOPMENT………………………………………………………10 2.4 JOB OPPORTUNITY FROM THE PROJECT…………………………………… 14 2.5 PURCHASING LOCAL BUILDING MATERIALS……………………………… 16 2.6 “GREEN LONG PASSAGE” PROJECT IN PROCESS..………………………… 16 3. SAFETY MANAGEMENT IN CONSTRUCTION AND HEALTH MAINTENANCE OF BUILDERS………………………………………………………………….…………… 20 3.1 SAFETY REGULATION AND OPERATION OF CONSTRUCTION...……………… 20 3.2 RIGHTS MAINTAININGOF STAFF ………………………………………………………21 3.3 HEALTH MAINTENANCE..…………………………………………………………… 21 4 PROJECT CONSTRUCTION AND INFLUENCE OF POVERTY……………………..22 4.1 POVERTY REDUCTION METHOD BY LOCAL GOVERNMENT IN THE AREA OF PROJECT……………………………………………………………………………………22 4.2 INCOME IMPROVERMENT OF POOR FAMILY….………………………………….23 5 PROJECT CONSTRUCTION AND WOMEN DEVELOPMENT…..…………………24 5.1 EVALUATION METHODOLOGY.……………………………………………………….24 6 CONCLUSIONS AND PROBLEMS..……………..……………………………………… 27 7 Annex: Social Development Action Plan of Lan Yu Railway Project..……….…………..29 ADB LOAN Social External Monitoring Report –No.1

Foreword Lan Yu railway project is 819.975 km long. In which, the section of Lanzhou to Guangyuan (free) is 491.437Km,Guangyuan (including) to Chongqing section is 328.538Km long. The new lane from Nanchong passing Guangan to Gaoxing is 93.639km long. Planned investment amount to 82.9146 billion yuan. among which ,300 million U.S dollars from ADB loans. The project construction has a period of 6 years. The scope of land acquisition and resettlement involved in Gansu, Sichuan, Shaanxi and Chongqing provinces and one city of 7 prefecture-level cities, 20 counties, 77 towns and 246 villages. Yuzhong County, Lanzhou City, Gansu Province, Chengguan District 2 county (district), Dingxi Minxian, Zhangxian, Weiyuan County, Lintao County, stability County 5 counties (districts), Longnan City, Wudu District, Dangchang County 2 County (area); Hanzhong City, Shaanxi Province in Ningqiang County 1 County; Sichuan Guangyuan overturned District, Lee state area, Yuanba, Cangxi 4 counties (districts), Nanchong City Langzhong, Nanbu, Jialing District, along Qing District, 4 counties (districts), Guang'an Wusheng County, a county (district); Hechuan District.

The railway began in Lanzhou City, Gansu Province, Lanzhou hub, set along the west through the city of Gansu Province, Gansu and the city of Hanzhong City, Shanxi Province, Sichuan Guangyuan, Nanchong City, Guang an City, Chongqing City, Hechuan District, and other administrative area, the end arrived in Chongqing in Chongqing hub, and from the Nanchong lead to the construction of single-track railway through Guang'an Nanchong to Gaoxing section. The ine runs roughly north-south.

The project construction has a period of 6 years.

Main Line Technical Standards of Lan Yu Railway:

Rail level National I Number of main lane: Lanzhou-Chongqing two-lane, Nanchong east to Gaoxing single-lane Limiting gradient: Lanzhou to Guangyuan 13 ‰, Guangyuan to Chongqing, Nanchong east to Gaoxing 6 ‰ Objective speed: Lanzhou-Chongqing 200Km / h, Nanchong east-Gaoxing 160Km/ h Category of traction: Electric power Load-pull: 4000t Minimum bend radius: general sections of Lanzhou-Chongqing Section: 3500m, difficult sections: 2800m; general section of the Nanchong east- Gaoxing: 2000m, difficult section: 1600 m Classification of locomotives: Lanzhou-Chongqing: EMU, SS7E; truck SS7; Nanchong east- Gaoxing: SS7E, trucks SS7 Effective length of arrival and departure line: single: 850m, double: 880m

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The larger rivers crossed by the Line include the Yellow River, Weihe River, Tao River, Bailong River, Jialing River, Fu River, river drainage, etc.. Method used in this project is that bridges replace the high embankment; there is a big number of bridges in this project. The basis of non-section area and spoil of non-cross river bridge has some influence to the ecological environment along the line, at the same time, crossing river bridge construction has influence on water quality and aquatic life to some extent. Total amount reaches 228.805 million cubic meters of earth and stone, of which, 177,768,200 cubic meters of excavation, filling 51.0368 million cubic meters; the entire line consists of super large, large, medium bridges amount to 433, the total length extends to 181,788 meters; the number of tunnel reaches 267 and has a general of 596.8Km, in which ,11 tunnels are more than 10Km long, total length is 168Km;main line track is 819.975Km, hub and contact line reaches 180Km; 23 traction substations; the project takes across the board area of 5218.2 hm2, permanent land 3289.7hm2, temporary sites 1928.5 hm2.

Beijing ZhongZi Overseas Consulting Co., Ltd. accepted the engagement of the Asian Development Bank and the Capital and Technology introducing center of Railways Ministry, give a whole external monitoring on the region's social development affected by Lan Yu railway project which uses ADB loans. Beijing ZhongZi Overseas Consulting Co. Ltd set up an investigation team to monitor and evaluate the social development outside in February to March, 2010, and do evaluation survey along the railway project. During the investigation, the Chinese Ministry of Railways, the project owner Lan Yu Railway Company, and construction company involved in the railway and Gansu, Sichuan, Shanxi and Chongqing municipalities and local governments provided information and data, these information and data is essential for external monitoring agency to complete the railway Lan Yu project‘s monitoring and assessment , we want to express our sincere thanks together to those organizations who provide strong support and help.

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1. MONITORING AND EVALUATING OUTLINE

1.1 The project promoted social development along the railway obviously 1. Lan Yu Railway is causing changes in the local economy in a positive way. construction along the railway will improve the traffic environment, there will be a positive impact on the local socio-economic development . Local industry that has the resources will be promoted to help attract foreign investment and activate elements of the local economy and create more employment opportunities. For instance, counties in Gansu Province / District has begun to adjust to local social and economic plan, including plans to build strategic loading point together with the railway construction and make future arrangements for socio-economic development by using railway. 2. Lan Yu railway projects has provided permanent land 28592.03 hectares; complete 833836.00m2 of demolition, 2980 affected families and 9540 people by demolition . Gansu, Sichuan, Shanxi and Chongqing provinces and one city of 7 prefecture-level cities, 20 counties, 77 towns and 246 villages. 19 settlements housing demolition received special support from the project in order to properly resettle the affected people and to ensure their housing reconstruction after demolition. Roads, irrigation facilities, power lines, communications facilities and other infrastructure caused by the railway construction is being restored; Resettlement department pays a lot of attention to community residents’ various types of requisition and complaints caused by demolition and construction works and they were solved one by one carefully. Such as the corner problem, construction noise, temporary land reclamation, road access issues; Various vulnerable groups’ problems and impact created by the project was taken good care of and with the assistance of the local community, the resettlement department will help to reach the renewal of life. Overall, although the recovery of life is undergoing, but what can be confirmed is that conditions of most land acquisition and resettlement of affected residents has been greatly improved. 3. Lan Yu Railway has just entered the first year, huge investment in public works, building materials procurement and tens of thousands of builders of living has greatly stimulate the regional social development. The project contractor building this railway project has employed 71.1 million manday, including 13.2 million manday direct employment along the railway ,which is 18.6% of the total amount of labor. The employment of local poor villagers reaches 10.7 million manday, accounted for 81% of hired staff. The employment of local women about 1.0 million days, accounting for locally hired staff, 7.5%; people hired from the local railway construction in the poor village received 80-120 yuan /day. Poor families participated in railway construction work receive at least the a total income of 11.989 million yuan, women employed received at least 969,000 yuan, at least 68 various service institutions was provided to the railway construction. 4. Local materials procurement of construction comes to a cost of 2.53 billion yuan. Among them, 260 million yuan of river sand to local government, 570 million yuan of

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cement ,250 million yuan of stone, 690 million yuan of steel , and 750 million yuan of other building materials; at the same time, 76.55 million yuan of living expenses by engineering contractors construction workers are paid to the local government. In material procurement, construction materials provided by the poor families are 89.72 million yuan, consumer goods supplied by the poor families to the construction team are 15.61 million yuan.

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1.2 The project promoted the poor people’s income and reduced poverty

5. Undoubtedly ,the project is positive in the poverty reducing and raising the level of benefit. In addition to this help effect, full compensation for land acquisition and resettlement are properly placed is also a factor. Besides, the benefit contains employment opportunities of labor-poor households by railway construction, or to provide building materials which can meet quality requirements, or to provide a variety of ways of living services to the railway constructions to increase family income. 6. Through the provision of employment services, the quality building materials, or engaged in providing transportation services to the railway construction site, or to provide live access to the construction team , Poor families along the railway construction get income in different ways . So far in this incomplete data, 10.7 million manday employment opportunities was provided to poor families, the poor received 11,989,000 yuan of revenue, (Table 2-2); the same time, by providing building materials to local railway construction, poor people get a revenue of 89.72 million yuan.

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2 PROJECT CONSTRUCTION AND SOCIAL DEVELOPMENT 7. Monitoring and evaluation on the impact Yu-Lan railway construction caused to social development is based on the PRC Ministry of Finance and the Ministry of Railways signed with the Asian Development Bank, the "About Lanzhou - Chongqing Railway Project Loan Agreement" associated "Action on Social Development Scheme" framework ( Annex 1), the "plan" put forward the following measures what should be adopted and was supervised: Job opportunities created by railway construction Purchasing local materials during construction Job opportunities created during operation of railway Control of AIDS/V.D.and human trafficking The recovery of people who are influenced by the resettlement especially disadvantaged groups Railway Construction Safety Protect group away from disturb and damage caused during the construction and operation Keep the continuity of family’s taking off deficient Pay more attention to the tour exploration of the poor people、women、minoities and other vulnerable groups

8. Lan Yu railway construction project another important north-south direction traffic railway in northern China, no doubt that the project will result in the macro socio-economic effect, but the effect long the railway communities and the negative impact should be paid positive attention, and measures should be taken to reduce or eliminate these negative effects, making the railway construction be an opportunity to improve the living standards for the poor and underdeveloped regions, especially how to guide relevant departments to achieve the social goals to become an important project management with efforts during railway construction. Lan Yu railway projects and social development plan takes on the multi-dimensional assessment of indicators to implement the external monitoring and evaluation agency and monitoring information data indicator survey and analysis methods to understand the actual socio-economic impact and potential integrated socio-economic impact during Lan Yu construction. The following aspects of monitoring indicators are specifically used in Monitoring assessment . Structure of labor in Lan Yu project Building material structure along the Lan Yu construction Influence of operation and living consumption by construction teams Local society’s developing adjustment caused by the Traffic improvement expectations of Lan Yu railway project. Improvement of infrastructure along the railway project Improvement of local people’s living conditions Improvement of local poverty conditions and income increase of local families

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Idea changes of local people

9. In the current social development action plan external monitoring evaluation, monitoring investigation officers talked with the local land acquisition relocation and resettlement agency staff, cadres affected by land acquisition and resettlement along the railway .at the same time, they have extensive contact with construction contractor , supervision company participated in railway projects of Lan Yu to observe the socio-economic situation of the community, in order to acquire the necessary monitoring and evaluation of relevant data and information as the basis of this monitoring and evaluation.

2.1 MACRO-BENEFIT OF THE PROJECT

10. Lan Yu is a key railway project for national and provincial construction. As a most convenient gold channel to the north from the south, and for achieving the strategic goal of China's western development, improve the railway network layout, promotion of mineral resources of Gansu Province, Shaanxi Province, Sichuan Province and Chongqing City, to accelerate poverty regional poverty alleviation, promoting its economic take-off and other planning objectives, Lan-Yu Railway project is a promising way. The distance will be shortened to 6 hours and 4 hours from Lanzhou to Chongqing and Chengdu. Applications are being built together with the Xi (An) Lan (Zhou) PDL, Lanzhou will gradually be a 6-hour economy as the center circle of Gansu Province. In this economic circle, Xi'an, Yinchuan, Xining and Chengdu, Chongqing, southwest, northwest city are included. Especially for the center coordinates of northwest Gansu province, by Lan Yu, Cheng-lan Railway, together with the southwest region as a whole, economic development was a merging of the trend - the rise because of railway ,which is "Gan Chuan Yu Economic Corridor" ,is worth waiting.If Lan Yu railway crosses from Chongqing to Huaihua, Shaoyang, Hengyang, Chenzhou, Guangzhou, expanding for the Lan Guang Railway, will form an aorta connecting northwest, southwest and the Pearl River Delta. If it crosses from Lanzhou to Chongqing firstly and then crosses Huaihua, Wugang, Yongzhou, Binzhou, Ganzhou, and finally Xiamen, expanding for the Lanxia railway, it will be a channel connecting the Northwest, Southwest and Min Delta. Lan Yu line goes through Linxia Hui Autonomous Prefecture of Gansu Province and Tibetan Autonomous Prefecture, Gansu, and Sichuan's Aba Tibetan and Qiang Autonomous Prefecture in close proximity, these three states are border land of Tibetan, Hui, Qiang, other ethnic minorities and Han .Especially the 600 km section of Lanzhou-Guangyuan run throughout the ZangHui residence , the construction of the railway Lan Yu is conducive to the development of local national economy, changes in ethnic area’s closing and backwardness, form a lifeline connecting the southwest and northwest , expanding into Qinba economy corridor. This has a very important role in enhancing national unity, ensuring peace and maintaining political stability in the western region. Currently, due to constraints of traffic, especially suffering the lack of rail transport,

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ADB LOAN Social External Monitoring Report –No.1 economic development along the Lan Yu railway is extremely backward, 25 counties crossed in the line contains 13 key counties for poverty alleviation, 4 provincial key county-level poverty alleviation. Many county farmers’ net income is less than 2,000 yuan. However, Lan Yu Railway is rich in agricultural resources, non-ferrous metal resources (Zn), coal, building materials, resources and cultural tourism resources. Lan Yu line construction is beneficial to the development of a variety of resources, and turning the resource advantage into economic advantage, speeding up and improving the living standards of the old and poor regions effectively along the route. As a national post-disaster pilot and determining project, Lan Yu Railway will provide long term support of infrastructures, for post-earthquake reconstruction and economic and social development. it will fully reflect the steadfast support of the restoration and reconstruction of affected areas, and will encourage people’s confidence and determination to speed up reconstruction of areas affected by earthquake. Lan Yu Railway is not only a big communication channel from northwest to southwest and southeast coast, but also an international channel connecting Central Asia and Southeast Asia.

2.2 THE EXTENT OF LAND ACQUISITION AND RESETTLEMENT OF PROJECT AND RESETTLEMENT RESULTS

11 the biggest impact for Lan Yu rail projects comes from the land occupied by construction and house demolition. The first phase of the external resettlement monitoring evaluation report by the external monitoring agency implemented the details that the population affected by the railway construction on land acquisition and house demolition so far (see the external resettlement monitoring and evaluation report in Section 5).Overall situation now is: Lan Yu railway projects provide 28592.03 hectares of permanent land; complete 833836.00m2 of demolition, 2980 households affected by relocation, 9,540 people affected by demolition . land acquisition and relocation along the railway line have affected the working and living of Gansu, Sichuan, Shaanxi and Chongqing provinces and one city of 7 prefecture-level cities, 20 counties, 77 towns and 246 villages and community residents.

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table2- 1 land acquisition nd removal affected by Lan Yu project

land acquisition removal

Permanent （Mu） temporary（Mu） house（m2） N0. region 2009 2009 annual Total 2009 annual Total Total annual （actual） Lanzhou 3764.73 3764.73 38323.00 38323.00 Yuzhong 2227.00 3576.00 110390.00 135890.00 6050.00 6050.00 1 Dingxi 2103.00 2927.00 176960.00 194005.00 Longnan 1724.00 3002.00 222341.00 275793.00 Subtotal 13269.73 6050.00 644011.00 Ninqiang 73.70 280.00 500.00 2 Subtotal 73.70 280.00 500.00 Guangyuan 2000.00 3642.36 1000.00 1000.00 28000.00 Nanchong 4100.00 6080.66 370.00 370.00 22850.00 3 guangan 2840.78 4228.78 586.28 586.28 137700.00 Subtotal 13951.80 1956.28 188550.00 Hechuan 1656.80 1656.80 380.00 775.00 4 Subtotal 1656.80 380.00 775.00

5 Total 28952.03 8666.28 833836.00

12 Facing the huge impact on the life caused by land acquisition and resettlement along the line of the project, project owners and local governments’ resettlement sector attached great importance, project affected people are properly placed and taken good care of through policies, institutions, compensation and resettlement funds and management procedures, , at least 4.01968 billion yuan has been allocated for compensation for resettlement. In resettlement work, Sichuan Province and Chongqing Municipality also allocated additional costs to purchase social insurance for landless farmers directly affected in the project. In order to properly resettling the affected people and ensure that housing reconstruction after the demolition, there will be 19 settlements full range of the program being special focused to support the building. Infrastructures damaged by construction projects along the railway facilities, including a large number of roads, irrigation facilities, power lines, communication facilities are being restored. All kinds of complaints and appeals from community residents caused by land demolition and construction works has been taken attention by the resettlement department attention and is seriously addressed one by one, such as the corner to the problem, construction noise, temporary land reclamation, road access issues and Etc. The direct impact on production and living of various vulnerable groups created by project takeover has been taken

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ADB LOAN Social External Monitoring Report –No.1 attention and got assistance of the local community, assisted by the resettlement department in order to achieve renewal of life. Overall, although the recovery is under way of life,.It can be confirmed that most of the residents’ living conditions affected by the land acquisition and resettlement have been greatly improved.

2.3 INFLUENCE AND PROMOTION OF PROJECT CONSTRUCTION AND LOCAL ECONOMIC DEVELOPMENT

13 As the potential future economic and social effects of traffic in the channel is well expected, settlement sector along the route has begun taking adaptations to Lan Yu railway construction to improve traffic conditions in the economic development and promote local social and economic development. The facts External monitoring agencies find out along the railway show that, despite stakeholders exist in the railway building, but the positive trend of social and economic changes caused by the railway construction along is taking place.

14 Mr.WuJun from land requisition and immigration department of Lan Yu railway company mentioned the facts that: 1）loading points system funded by the private companies using coal-rich parts and Strategic mineral resources is taking shape along the railway within the county / district because of the construction Lan Yu railway. This work is guided by the local government and local strong mineral developer invested in the project, in which, facilities are supported by the Lan Yu Railway design institution, support is given by land management, and the railway station railway station passenger facilities, construction of parallel and Storage Yard facilities guaranteed conditions for rail transport along the county and district mineral resources; 2) county / district along is carrying out regional planning for urban development strategies including transport links around the train station, hotel services, facilities, and. To some extent, the railway station will profoundly affect the three-, four-city urban development strategies along. For example, Weiyuan railway station has formed the railway station development plan; 3) households affected by Demolition of some areas along the railway line will take the new resettlement program, most of the original cottage living turn into residential housing and result in a large community home resident. This will profoundly affect their way of life. The removal of the affected households by concentrated settlements is resulting in a large community.

15. Mr. Liu Zhongren ,Vice President of Lan Yu Corporation said that: during the peak construction period in railway construction particularly, the concentration of investments must pull the city's GDP growth rate --- a substantial increase in agricultural and service industries demand for railway construction on the building materials and personnel requirements of the construction team is directly promoting the rapid development of

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ADB LOAN Social External Monitoring Report –No.1 tertiary industry in our city. A large number of engineering and technical personnel and the demand for unskilled workers for Railway construction will also create more employment opportunities, increase income, and achieve harmony together with the local railway.

16 Mr. Zhu Ping di(15825826319) , Deputy Secretary for Land and Resources of Min County in Gansu Province, said: Min county is called the "Millennium medicine villages," and China "Angelica town" in the world, Chinese herbal products are exported to China, Hong Kong, Taiwan and South Korea, Singapore, Malaysia, Thailand, and more than 20 countries and regions, but the absence of rail transport, marketing costs remain high, directly restricting Chinese herbal medicines and potatoes, livestock, mining and other six industries. The construction of Lan yu railway makes Xu Shude , the Deputy Mayor Min County .very excited, he said: "The traffic problem has been plaguing the same as the yoke of Min County’s development, the establishment of Lan Yu railway station interval is Min County’s 450,000 people’s strong desire and demand. now dream is fulfilled, as long as Lan Yu Railway operates, Min County at the junction of the Southwest and Northwest could reproduce the ancient busy scenes of tea-horse trade. It's built not only revive Min County’s economy, accelerate the pace of building a well-brought rare historical opportunity, but also of great practical significance and far-reaching strategic significance to economic restructuring for Min to play a transport hub and 'dry dock' position, speed up the county of Getting Rid of Poverty ." a medicine business executives from Min said :" the Chinese herbal medicines here has to be pulled to the train by car from Longxi County which is inconvenient and costly and has a long period, through the railway line Lan Yu, Our ingredients can be directly sent to south ! "

17. Yujingdong, Sectary of Anning district from Lanzhou city, think that: railway goes first if economy wants to develop. The construction of Lan Yu railway is very important to the passing through of northwest to southwest, the communication of both place’s economy and the improvement of logistic. Anning district and National Lan Zhou Economic and Technological Development Zone carry out the “district together” policy, and it is where New Lan Zhou town locates, In recent years, through the great efforts" attract investment Strongly", a number of large projects and the well-known enterprises have settled here, economic and society develop strongly. Lan Yu Jian railway marshalling yard locates in Anning District, which played a significant role and support northwest towards the establishment of our regional logistics center in Southwest China, and also played a strong support for the establishment of import and export bonded logistics park on the Qinghai-Tibet. As the project started, there must be formed in the manhole relay regional flow, logistics distribution center, which requires us to project the future development and practitioner guidance on the public to fully focus on the features and advantages, to develop food and beverage, accommodation and other tertiary industries.

18. Wang Daode, Railway construction office in Guangan thinks: there is a majority of poor and remote areas along the railway of Lan Yu, involving a population of about 3,600

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ADB LOAN Social External Monitoring Report –No.1 people, the railway passes through the area rich in minerals, herbs, hydropower and tourism resources. Chinese herbal medicine resources ranks first in the country in Gansu Province, Longnan has the country's largest lead-zinc there, construction materials, coal limestone and other non-metallic ore, rock salt, phosphate, and natural gas reserves are larger in Guangyuan,. Lan Yu has the advantages of developing unique "red tourism" and "ecotourism" along the railway. For a long time, due to constraints of traffic conditions, wealth of resources along the Lan Yu railway is difficult to translate into economic advantages, regional economic development is lagging behind, there are still 13 state-level poverty counties, after Lan Yu Railway is completed, it will enhance the local surplus labor force to migrant and accelerate regional industrialization and urbanization ,played a catalytic role in hematopoietic itself in poor areas, so as to achieve poverty alleviation. since the implementation of western development strategy, the Northwest and Southwest exchange of goods between rail grow rapidly, faster than the national average, passenger and freight transport have greater growth potential, there is a lager and urgent need for a smooth channel to meet the transportation. Lan Yu is indeed with the critical mission.

19. Mr. Liu Hubin, Vice Mayor of Guangan said: Zao mountain railway yard and the new Logistics Park from Lan Yu has been finalized. Zao mountain railway yard and the new Logistics Park building is significant to further improve the urban functions, accelerate the development of strong city and tourism and enhance regional economic cooperation and exchange of great significance. It will form a convenient transportation network, promoting the logistics, warehousing and other industrial development; it should rely on the park, drive urban development and expansion and promote sound and fast economic and social development of Guangan.

20.Director Wang(13508093009) of Railway construction office in Nanchong said: Only when the function is fine, the basis of regional central cities will be strong. Function determines the city together, radiation, lead and demonstration capabilities. By upgrading the status of integrated transport hub, improving urban infrastructure systems, industrial development, and public service system, further enhancing urban functions is an important condition for the city turning into a regional center. Regional competition is the hub of the core dispute. Construction of north-south, linking the east, convenient water and land transportation. integrated transport hub means a lot to enhance the Northeast Regional Center of Nanchong city status. Nanchong is an important node in the state of traffic “five vertical and seven horizontal" and in building an integrated transport hub in Western pattern of the status with advantage of backwardness. Chengnan and Chengguang Express changed the Nanchong traffic occlusion of history. Nanyu highway being built will expand from Chongqing to the North Sea; Guang (yuan)Nan highway which is about to finish, passes through the Xichong, Nanbu, Langzhong to Guangyuan, and will expands through north to Lanzhou and Xi'an highway access ; Lan Yu will make Nanchong a national joint of east -west and north-south railway. Jialing River channel will

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ADB LOAN Social External Monitoring Report –No.1 realize the passing through of high-grade ton ship to Chongqing, via the Yangtze River to the sea. After increasing Gaoping airport routes and flights, the transport capacity will be gradually enhanced. We will speed up seven highway construction, speed the construction of railway, waterway, forming the transportation network as soon as possible to enhance the radiation group of Northeast cities.

21. Lan yu railway uses some of the local railway construction workers and increases their income. Railway construction contracting sector workers and managers bought daily necessities, especially vegetables and meat from local villagers to increase the income of the villagers.

22. Despite Railway land requisition and removal along the region inevitably affects the local communities especially in rural production and livelihood of community residents, Lan Yu resettlement departments gives a close coordination and conscientiously fulfill the commitment to the resettlement plan, changes the negative social impact into the positive social impact in various ways, which receives affected person and government 's support along the region while reducing the negative social impact as well. External monitoring and evaluation agency will monitor detailed the social development action plan in the report, this report described only briefly.

23. According to the external monitoring and evaluation team along the meta-analysis of the investigation, two positive effects of trends of Lan Yu railway and a good social impact communities along the route have been formed. First, Lan Yu railway asked the companies participating in the construction of the railway when it’s needed to determine the construction of sidewalks, construction of temporary bridge, and set up the cross for the convenience of electricity lines, water supply pipeline infrastructure planning, they should consult with the local county’s community to secure favorable conditions for construction coordination and construction of the external environment. When the project is coming to an end at this stage, particularly rapid progress of the works by Ningxia Hui Autonomous Region and other parts of the western section ,the local community should not only be required to make temporary use of land reclaimed by the construction unit back to the original use of state of things, for those pioneer roads and temporary bridges that may be beneficial to the future of local communities should be kept to reduce local community’s infrastructure investment, while retaining part of the construction units like the temporary space , water supply control and power supply circuit. This arrangement in effect leaves a lot of infrastructure for community development along the railway line and reduces the local investment in this section, reduces the burden on local residents as well. Second, the construction required a large number of temporary sites along the red line along the railway outside the expropriation, some of these temporary sites may be required due to construction difficulties caused by temporary land reclamation, such as the system along the beam field due to construction needs to lay a solid foundation, which left reclamation difficulties. Part of the spoil ground, especially the tunnel construction

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ADB LOAN Social External Monitoring Report –No.1 spoil, debris field, is all temporary use of land which is difficult to reclaim. Lan Yu Railway made up for this reclamation of land all by permanent land acquisition compensation standards, while recognized them as to the nature of the temporary land as well. Particular part of the beam field base has been developed for the use of the local government’s investment and result in an important guide to local projects.

2.4 JOB OPPORTUNITY FROM THE PROJECT

24. By the coordination of local government headquarters and the poor sector, a large number of unskilled employment opportunities are available to the local poor people and women during the construction of the railway to receive income.

25. External monitoring team learned from the railway construction contractor that: a large number of non-technical jobs are available to poor families, employment of local residents including poor families, labor force, and a minority of women to work along the county / district. In Gansu and Sichuan provinces, ethnic minority families also got non-technical types of jobs in the railway construction. According to the incomplete data the monitoring team got from the construction contractor (Table 2-2):0.711 million Man-day has been used in the project of Lan Yu, including direct employment of 0.132 million Man-day from the local villagers along the railway line, reached 18.6% of total. The employment of local poor villagers reached to 0.107 million days, accounted for 81% of staff that are employed; the employment of local women is about 10000 days, accounting for 7.5% of local hired staff, poor villagers got 80-120 yuan / man-days wages from the local employment in railway construction. Poor families got at least the total income of 11.989 million yuan from participation in railway construction, women at least 969,000 yuan. There are over 68 various institution services provided to the railway construction.

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Table 2.2 Situation of employment workers of Lanyu

workers（man-day）

In which

Project day-wage Women income（10 Service department/Construction Total Local （yuan/ income（10 Ratio/% Poor Women thousand） units bureau man-day workers Ratio/% Ratio/% work-day） thousand） workers workers

21 bureau 38500 15500 40 12400 80 1550 10 120 148.80 18.60 8

19 bureau 18960 2275 12 1706 75 182 8 90 15.35 1.64 6

16 bureau 32970 4945 15 4698 95 247 5 115 54.03 2.84 5 tunnel bureau LYS-3 17820 2014 11.3 1712 85 120 6 120 20.54 1.44 6

11 bureau 11650 3227 27.7 2788 86.4 161 5 85 23.70 1.37 4

18 bureau 43360 14265 32.90 12838 90 998 7 130 166.89 12.97 5

13 bureau 129124 22559 17.5 15884 70.4 2440 10.8 80 127.07 19.52 6

tunnel bureau XQLS-2 318175 37167 11.7 31225 84 1858 5 120 374.70 22.30 4

Road and bridge 42315 10580 25.00 7940 75 420 4 110 87.34 4.62 6 China coal 15489 5686 36.7 5118 90 350 6.2 120 61.42 4.20 8

2 bureau 18800 5640 30 4850 86 226 4 100 48.50 2.26 6 China traffic 1 bureau 24000 8640 36 5876 68 430 5 120 70.51 5.16 4

total 711163 132498 18.6 107035 8982 1198.86 96.92 68

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26. External monitoring institutions are aware of that due to the quality of labor rural communities along the railway line could not reach the demand of construction contractors; the initiative of engineering contractors using local workers is to some extent affected. As Railway construction unit needs coordination with local communities to get the relation between the local co-operation with the local villages and towns to reach the railway construction employment priority to local communities in the labor agreement, but on the one hand local community labor is not suited for these formal specification management system, some people are even lazy so as to affect the progress of works to some extent. Zhang Hongzhi(13830915033),vice president of fourth construction company from China railway 13 bureau ,said: when using workers, local accounts for about 21%.The reason not widely using local workers is that: First, local employee is not easy to manage, second, the construction has some types of technical requirements. Most of the local employee engaged in simple unskilled manual labor like construction of earth excavation, drain, and forestation, wages around 80-120 yuan / man-day. The company also hired local women to take care of construction materials and cooking, etc. wages around 80-120 yuan/man-day.

2.5 PURCHASING LOCAL BUILDING MATERIALS

27. Not only did Lan Yu railway project hire some local labor to do non-technical work to improve their family income, but also as far as possible buy from the local procurement of construction materials with the premise of quality assurance to reduce transportation costs, obtain the local building materials market and increase revenue. External monitoring and evaluation agencies from the project contractor interviews and information provided to obtain materials from local procurement of specific data (Table 2-3). These data reflect the railway construction on the local economy through income growth of the situation. Local procurement of construction materials cost reached 2.53 billion yuan. Among them, the procurement pay 260 million yuan to buy the local river sand, and 570 million yuan cement, 250 million yuan stone, steel, 690 million yuan, and other building materials 750 million yuan; the same time, the construction contractor construction paid 76.55 million yuan personnel living expenses to the local. In materials procurement, construction materials provided by the poor families reached a total of 89.72 million yuan, consumer goods construction team of contractors supply to the poor families reaches about 15.61 million yuan. Railway county / district and sub-provincial cost of building materials and construction team of local procurement consumption are shown in Table 2-3. Procurement and consumption of these materials effectively promote local industry and economic development and increase the income of poor families.

2.6 “GREEN CORRIDOR” PROJECT IN PROCESS

28. External monitoring and evaluation institutions learn that: "Green Corridor" plan advanced together by Lan Yu and various stakeholders is being planned. The plan

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ADB LOAN Social External Monitoring Report –No.1 envisages to build within 50m on both sides of green shelter belt planting along the upcoming Yu-Lan railway. Specific planning and required uniform seedlings of this program is provided by the Lan Yu belt construction company, three provinces’ Forestry Department along the railway line are responsible for organizing the planting. Implementation of the initial budget for this program is about 20 million yuan. At present, the "Green Corridor" project budget approval is reported to the Ministry of Railways, Gansu Province has issued letters by the Forestry Department to promote the implementation. What can be expected is that ,this will be a favorable environment along the railway business.

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Table 2-3 Situation of Lan Yu railway procuring local construction materials

Materials Service Construction materials procurement（10 thousand yuan） from Project from poor Living service Total（10 poor department/ families expanse（10 thousand families Construction （10 River thousand yuan） yuan）（10 bureau Cement Stone Steel Other Total thousand sand thousand yuan） yuan）

21 bureau 1546.00 6048.00 1650.00 7800.00 2438.00 19482.00 715.00 20197.00 848.00 150.00

19 bureau 19978.92 980.00 129.00 1293.15 5937.98 1296.61 9080.90 2370.28 689.00 20667.92

16 bureau 1418.00 260.00 4391.40 7285.30 1368.40 11026.90 4884.90 28956.90 1285.00 30241.90 China tunnel 3592.17 5296.44 2720.87 8328.50 3198.20 23136.18 1056.00 24192.18 1064.00 206.00 LYS-3

7 bureau 1008.00 110.00 4957.24 5682.00 4156.69 9850.00 1200.00 25845.93 575.00 26420.93 China tunnel 232.00 40.00 XQLS2 277.00 2774.00 788.00 2989.00 21.00 6849.00 184.00 7033.00

11 bureau 502.00 80.00 1050.00 2710.00 3860.00 4021.00 1708.00 13349.00 482.00 13831.00

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18 bureau 118.00 80.00 777.50 160.00 853.50 180.00 1050.00 3021.00 227.00 3248.00

13 bureau 1568.00 122.00 2449.71 10794.01 2898.11 4239.90 51595.94 71977.67 610.00 72587.67

Road bridge 3490.00 4293.00 2510.00 5321.00 2698.00 809.00 19121.00 560.00 170.00 18312.00

China coal 1236.00 5941.00 1358.00 5900.00 2178.00 506.00 17119.00 465.00 106.00 16613.00

2 bureau 2714.00 109.00 38.00 612.00 180.00 634.00 100.00 980.00 2506.00 208.00

China traffic 1 3105.00 100.00 70.00 812.00 205.00 793.00 206.00 780.00 2796.00 309.00

Total 8972 1561 26484.17 57306.73 24887.18 69043.20 75102.32 252823.60 7655.00 260478.60

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3. SAFELY MANAGEMENT IN CONSTRUCTION AND HEALTH MAINTNANCE OF BUILDERS

3.1 SAFELY REGULATION AND OPERATION OF CONSTRUCTIION

29. Overall, the construction contractors pay attention to construction safety management system and improve and strictly implement the relevant system. Those involved in Lan Yu railway construction engineering contractors are from China Railway, China coal and China traffic which have higher management level than other Chinese state-Engineering & Construction Group, they have strict engineering specifications management system.

30. Lan yu engineering contractor from China Railway 18 bureau introduced that: before 2009, Company implements the Group's quality and safety control system, and in 2009 the Ministry of Railways proposed the "standardized management", and Lan Yu railway will be as the management system pilot project. The so-called standardized management is the safety and quality standards, during the period from start to the end of the project, every part involved in the security, such as construction safety, which include health and safety, etc. were to form a set of standardized management system. In site construction management, the company's implementation of the engineering of the system mainly focus on the security details of the regulation: fine of 100 yuan / person / times if the construction site without seat belt; workers certificates are needed on site; construction of special types gain safety training each week, engineering headquarters of the staff gain training once a month. In addition, posters were put up around the construction site to enhance awareness of construction workers in the labor protection.

31.Mr Zhao Yukun（13620677135）from Lan yu engineering contractor of China Railway 16 bureau introduced their methods:

1) The first is to establish a safety management system. Each Department of Engineering Manager are Requested to carry out "horizontal to the side, vertically in the end, control and effective" principle to enhance security management controls, establish one safety and quality management organizational structure with safety, quality, environmental protection, water protection, and 90 full-time management of cadres are configured. Corresponding development of "Lan Yu railway safety and quality penalties," as the implementation of security management; while also issued management system "Lan Yu Railway Engineering Command Construction Safety Management Interim Measures." to protect the project safety and the safety of construction workers.

2) the construction sector at all levels (headquarters, departments and operations team manager) to set the security management committee and the safety and quality engineers and training to carry out security operations, the implementation of the system.

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3) Strengthen supervision and inspection to ensure the results. The command will manage the tissue of engineering quality and safety and special rectification activities on a regular basis.

4) To protect the community residents along the railway construction, construction units are required to make warning mark at the construction site to show the security system and important tips.

5) Under safety measures said above, various construction units have a lot of work in this area to do. Besides, there are special funds and measures to prevent such incidents.

32. Each bureau include 19th bureau pay special attention to the safe production. Every manage department organized all workers to be aware of pre-job training of” safety will be known”, and pass the examination. Those engaged in special operations, must be approved by relevant training and obtained certificate before work, and prohibited those without training or examination or unqualified person without certificate.

3.2 RIGHTS MAINTAINING OF STAFF

33. Lan Yu railway project focus on the rights of all construction workers involved in building, these benefits include employment security training, employment contract, payroll, health protection, social insurance.

34. External monitoring agency learned that Lan Yu Railway Company mention the concept of building a harmonious. Companies involved in project management to railway construction management and training of migrant workers, the mobilization of workers’ working enthusiasm and initiative as an important part of building a harmonious railway. To ensure that no wage arrears for rural workers, Lan Yu railway company institutionally required railway construction project contractors to establish deposit accounts to pay wages for migrant workers, according to the number of stored quantities margin. Parts of the project construction units apply a personal accident insurance for workers.

35. The “service contract" that external monitoring organization report in the second phase determines the minimum wage of migrant workers and issuing criteria, social insurance, and other rights, in which the current report will not repeat .

3.3 HEALTH MAINTENANCE

36. Measures taken to protect the workers health by the bodies in the construction along Lan Yu railway include:

1) Each respective project group use its own health resources (staff hospital) or the

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ADB LOAN Social External Monitoring Report –No.1 construction field hospital on a regular basis (usually one year) to organize medical staff to understand the health status of workers; engineering and construction field hospital command enter into trust agreements, contact with local medical institutions disposal if there is emergency. 2) Part of the construction unit site located Hygienists;

3) Establish health files for all construction workers as soon as they are hired.

37. Within the construction project of China Traffic, no cases of infectious diseases occurred currently, and no cases of AIDS. Engineering Department and the headquarters of the company contact the resident hospital staff to conduct a comprehensive examination of the official once a year, including workers, managers, coordinating sector workers, skilled workers, etc.. Staff canteens, restaurants, waiter, back office personnel receive medical examinations more frequently.

38. In China railway 18th bureau, Health and disease prevention project is part of quality control system and incorporated into emergency plans system. Specific practices including:

1) The company asked the key health-related departments, such as canteen staff posts to hold the health certificate;

2) Regularly test: The project department use local health care institutions to give regular medical care for employee. The Group's health care professionals (usually a few months time) deliver drugs to railway construction site.

3) According to the high density of workers in site and greater relative concentration of migrant workers, in order to ensure workers’ health safety, cook who serve the workers must receive the health certificate, multiple medical care in one year and strict disinfection of cooking utensils;

4) Main measures according to Health and Safety of staff are: population and family planning management, disease control, hepatitis and infectious diseases detection and prevention, routine annual physical examination, gynecological examination of female employees. The construction units must focused on workers, especially migrant workers in the health screening and infectious diseases, sexually transmitted diseases, AIDS control, prevention of mass food poisoning incidents.

4 PROJECT CONSTRUCTION AND INFLUENCE OF POVERTY

4.1 POVERTY REDUCTION METHOD BY LOCAL GOVERMMENT IN THE AREA OF PROJECT

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39. Most of the region crossed by Lan Yu railway projects are relatively poor areas in western China. Poverty alleviation and level raise of benefit by the project is undoubtedly. Full compensation for land acquisition and resettlement are properly rehoused in addition to this help effect, but also benefit from poor family labor through access to the railway construction site employment opportunities, or to provide the required quality building materials to the railway construction sector, or provide services and other means of living increase to the railway construction to improve family income. Information from the discussions and interviews of External monitoring bodies along the local government with the affected villages showed that trend of changing impact of poverty is positive and significant.

40. Local government along the county area is implementing a new socialist countryside campaign, provide unified resettlement to affected people, project affected people living in the reconstruction obtained infrastructure and other policy support from the local government settlements. The project overall changes the face of the affected people and quality living.

41. Lan Yu Railway along the county has made a certain improvement to poverty areas. It is understood that in such cases along other regions (all to varying degrees, mainly in the following areas:

1) Over the past year, transportation vehicles and agricultural vehicles transport materials along the rail to increase the income of farmers; 2) The use of some of the local labor force increased the income of farmers; 3) Railway construction unit to purchase local consumer goods and woods, especially vegetables and meat, which increase the income of farmers and boost the local industry; 4) The railway construction units implement the annual festivals (such as the Spring Festival, etc.) and donate to the local poor villagers to improve conditions for some poor families; 5) The railway construction unit turned over revenue and increase the county's financial income, indirectly increasing the ability of the county's poverty.

4.2 INCOME IMPROVEMENT OF POOR FAMILY

42. For the reason of railway construction and relocation compensation, the affected poor people increase the family income in short-term significantly. Part of the family thus gained the financial ability to develop income sources other than the agriculture with the help of local guide, this financial capacity will further increase revenue for poor families. At the same time, it is clear that among the demolition of existing houses, brick structures, civil structures, all these old houses have a high proportion, and the majority of new homes

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ADB LOAN Social External Monitoring Report –No.1 re-built because of demolition are brick-concrete structure. Many relocatees are pleased to have this opportunity to improve their living conditions.

43. With capacity and expertise of mechanical construction unit, local rural cadres request construction unit to help poor families to relocate and reconstruct, engineering units give great support from transport and settlements formation of new house sites.

44. The report table 2-2, table 2-3 have shown that the project contractor building this railway project has employed 71.1 million manday, including 13.2 million manday direct employment along the railway, which is 18.6% of the total amount of labor. The employment of local poor villagers reaches 10.7 million manday, accounted for 81% of hired staff. The employment of local women about 1.0 million days, accounting for locally hired staff, 7.5%; people hired from the local railway construction in the poor village received 80-120 yuan /day. Poor families participated in railway construction work receive at least the a total income of 11.989 million yuan, women employed received at least 969,000 yuan, at least 68 various service institutions was provided to the railway construction. Local materials procurement of construction comes to a cost of 2.53 billion yuan. Among them, 260 million yuan of river sand to local government, 570 million yuan of cement ,250 million yuan of stone, 690 million yuan of steel , and 750 million yuan of other building materials; at the same time, 76.55 million yuan of living expenses by engineering contractors construction workers are paid to the local government. In material procurement, construction materials provided by the poor families are 89.72 million yuan; consumer goods supplied by the poor families to the construction team are 15.61 million yuan.

5 PROJECT CONSTRUCTION AND WOMEN DEVELOPMENT

5.1 EVALUATION METHODOLOGY

45. External monitoring and evaluation have been assessing the adherence to this concept: gender equality, especially if women in the socio-economic activities are the same as equal treatment with men is a basic principle to assess the study. Site assessment and investigation team take the way to communicate with the local county, township and village women's federation to understand the overall changes in the local women's development; They had informal discussion with the affected families, especially households headed by women about specific impact Lan Yu Railway do to their production and life; and from the process of land requisition compensation and resettlement compensation and resettlement policy from the development and implementation of the principle to observe the implementation of gender equality.

46. In 2009, Dangchang County Women's Federation work under the principle "double learning double compare", established bases in urban and rural women's education and

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ADB LOAN Social External Monitoring Report –No.1 women's training schools and women's service center to cultivate economic women, develop science and technology model households t of courtyard economy in female and make efforts to enable women to master 1-2 new enrichment technology; at the same time, the county make efforts to do "Earth's Love, Mother Water Cellar" project. In the county Women's Federation work of poverty reduction and including county, on involved poor villages related with Lan Y u, through contact of towns and villages with Lan Yu ,it is agreed that the construction team use railway labor including women workers from the local village as a priority. Jingbian county women's federation broadly organized women's technical training, activist training, comprehensive safeguard rights of women and children under the guidance of the "harmonious family" concept; in 2009, Suide county women's federation launched a 23 total of 2,000 people skills and technology training, prioritize the village women affected by the takeover of land of the Lan Yu Railway, and promote mutual support and assistance to start work. Through training, 300 women labor force are selected to Shenzhen, Shanghai, some of the women along the Lan Yu was hired to cook for the local railway construction units or materials manager.

47. Tao Kaiqin from Guangan women's federation said: there are 1.4 million women in Guangan, which is 46.8% of the total population. Adult female literacy in rural areas is mainly under junior high school. County, township and village women's bodies are healthy, women work goes smooth and well. Women's federation’s main work is skills training and rights, including 4-5 times annual training, such as vegetable growing and aquaculture training. Railway Construction had some effect on the development of local women, many women get the knowledge of railway construction in the county through newspapers, television and notice; Many women's ideas and concepts change, the original sticking to the same family farming model is now turning into going out to labor, seeding shed ready food, and women doing business are increasing; according to external monitoring and evaluation agencies investigation, there has similar circumstances in Ningxia Wu and Yongning County.

48. Lan Yu railway construction projects are very concerned about women's rights protection work, women participating directly in engineering enjoy the special treatment in“ women’s four period" in addition to enjoying equal pay for equal treatment of railroad employees. Female migrant workers reflect the labor intensity of work is less than household and there is more income. Although the land requisition and removal bring some negative impact to groups of women more or less, but with the work of local government and Lan Yu Company, this impact will be reduced to minimum. And it’s more important to bring these women new awareness and concepts.

49. External monitoring and evaluation team considered : Lan Yu railway construction projects promote the development of gender equality issues along the region and it’s forming positive change. Since the Railway construction, the ideas of women, social position, family status and other aspects of the emerging trend is good, more women pay

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ADB LOAN Social External Monitoring Report –No.1 attention to education through the women's federation‘s guidance and participation in the market economy and feelings, This includes self-learning culture, learning technology, including attention to children's education. External monitoring team in the field investigation found no discrimination against affected women.

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6 CONCLUSIONS AND PROBLEMS

50. Lan Yu railway projects are proceeding and the promised agreement "social development action plan" is in the process of synchronization. Overall, Lan Yu railway provide huge employment opportunities to villages during the construction, While it cannot be summarized that these employment opportunities number achieve the planned number (as the project is still ongoing), however, it is a direct opportunity for local labor force, particularly more than 83% of poor households to improve household income. The construction sector along the railway line provide a large number of funds available to local communities and poor families through purchasing large quantities of building materials and consumer goods, not only stimulating local industry, but also improve life opportunities by providing materials to the local poor families .Lan Yu Railway project owners and contractors participate in the construction of the project resettlement agencies and local government departments requisitioned by various measures to ensure that the affected people and rights of railway construction workers, including their salaries, construction security, social insurance , health and epidemic prevention, health protection. Due to a series of preventive measures, there were no major health outbreaks and infectious diseases including AIDS. Women, minorities and other vulnerable groups involved in project are treated equally. local government Resettlement departments cooperated with the local Women's Federation, including poverty alleviation and other departments ,provide a variety of skills training to the poor, women, affected groups, in the process of rebuilding lives affected, resettlement departments and engineering institutions give what they could give to help.

51. Employment in the railway operations and tourism development required in has yet to be continued only after the railway operates;

52. While the general, it is affirmative what Lan Yu railway projects do in the promotion of socio-economic development and it’s positive role of values but the external monitoring and evaluation body still concerned that the following worth further attention:

1) Local government's poverty reduction and women Federation and other agencies have been working hard, but the general sense, these institutions’ attention to vulnerable groups has not yet fully integrated with poverty alleviation and women's work to promote a series of work placement with Lan Yu railway. Local government departments should be placed through the strengthening of horizontal communication to enhance for special measures to assist vulnerable groups to improve placement results;

2) As the social security policy has not yet implemented to those affected people in railway land acquisition and resettlement, the affected people’s Sustainable living faces follow-up risk after they are resettled.

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3) In some construction units ,some short-term temporary employment and local employment were not available to get medical examination , including sexually transmitted diseases and AIDS, which affected preventive effect of the monitoring of major infectious diseases;

4) Land reclamation including borrow pit and quarry are still in progress provisional, which needs intensified monitoring.

53. The next Social Development Plan monitoring points of External monitoring assessment institutions:

1) Focus on the construction of the local community's environmental impact, such as noise and environmental protection, rehabilitation of infrastructure;

2) Income restoration of affected persons;

3) relations between project operation preparation work with local affected human, such as station design, future management planning processes linked to local affected people;

4) Pay continued attention to local railway’s macro economics.

54. Next Monitoring report time of "Social Development Action Plan>: October, 2010

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7 Annex: Social Development Action Plan of LAN YU Railway Project

Table Social Development Action Plan Proposed Actions Targets Agencies Involved Timing Funding Source Monitoring Indicators A. Job creation during construction 60% of unskilled labor force MOR, contractors, 2008–2 Labor costs are No. of local labor employed by • Use of local unskilled labor including hired locally (71,400 12-month poverty reduction 012 included in Projevct gender those from poverty villages in remote jobs), including women offices, All-China costs No. of workers from poverty areas especially the poor, women, More than 50% of unskilled Women’s Federation Recruitment and households ethnic minorities, and vulnerable groups labor from poverty households (ACWF), and labor training from local No. of local sellers provisioning the • Priority given by local governments to Labor recruited from at least bureaus government budgets work camps by gender local sellers in providing services, food 20 remote poor villages Contract clause and supplies at service areas and construction camps B. Use of local materials for All materials locally available MOR, contractors, 2008–20 Included in contractor’s Amount and source of supplies from construction sourced locally and local 12 budget for civil works local area • Purchase of local construction materials 22,000 person-years sourced governments No. of local workers and from poor meeting necessary quality standards locally in the provision of households Restoration of lands • Use of workers from poverty construction supplies used temporarily households for sourcing materials 11,000 person-years or more Contract clause especially women than 50% of workers sourced • Borrow pits and quarries are returned to from poverty households their natural state or developed as fish ponds or other beneficial land use

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Proposed Actions Targets Agencies Involved Timing Funding Source Monitoring Indicators C. Jobs during operation of railway poverty households; >25% are MOR, Project 2013 Railway Company for No. of workers hired and trained in • Hiring and training of the poor, women, women Company, poverty onward workers total, by gender, ethnicity and poor and other vulnerable people 650 workers trained and reduction offices, ACWF for business No. of workers trained in total, by • Design of station areas to allow for employed in railway operations, ACWF, and other local start-ups, poverty gender and poor handicraft shops, gift shops, 160 women hired and trained, government agencies aspects No. of women-owned businesses restaurants, etc. 40 women-owned small started • Local businesses meeting passengers’ business, needs 50 local businesses started • Local governments design commercial areas adjoining stations for local businesses D. Control of HIV/AIDS/STIs and human All workers understand dangers MOR, contractors, 2008–20 Project, contractors and No. of health workers trafficking of HIV/STI & human trafficking county health 12 local health and security Incidence of HIV/AIDS • Health testing, counseling, and referrals Testing and medical referral departments, and civil bureaus No. of posters/pamphlets in construction camps; availability of service available to workers and affairs bureaus Media programs on TV and radio condoms local residents stations • Awareness and prevention on Number of tested people HIV/AIDS/STIs and human trafficking campaigns E. Income recovery for resettlement All APs, with special measures MOR, local 2008–20 Project and local Income level of APs, by ethnicity affected persons (APs) for vulnerable people, women, government 11 government (as per No. of people trained and new jobs, • Identification of vulnerable people the poor and Tujia (1,000 resettlement offices, Resettlement Plan by gender and ethnicity • Income restoration measures household with land loss; 200 and village budget Grievances and redressal • Readjustment of land households to be relocated; and committees

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Proposed Actions Targets Agencies Involved Timing Funding Source Monitoring Indicators • Training and special assistance one seriously affected village

G. Village development Poverty villages and villages EA, provincial and 2008–o Local governments with Number of villages provided with • Provision of basic infrastructure and without access to road, safe county governments. nward assistance from road access, safe drinking water, social services in poverty villages along drinking water, telephone contractors and telephones the railway alignment F. Construction safety All contractors and construction MOR, contractors 2008 Project budget Signed contracts • Ensure safety guidelines developed workers onward No. of workers injured and incorporated into contracts with all No. of accidents contractors No. of inspections • Periodic inspections by MOR H. Protect communities from All communities in the project MOR and contractors 2008–20 Project budget Working hours construction and operation area (84 villages) 12 Under- and overpasses disturbances and damages Irrigation and drainage canals and • Prohibit nighttime construction and roads repaired adherence to noise standards Housing damages • Building of over/underpasses where Grievances and redressal needed • Reconstruction of damaged irrigation and drainage systems and local roads • Avoid or mitigate damage to housing

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Proposed Actions Targets Agencies Involved Timing Funding Source Monitoring Indicators caused by blasting I. Sustainability of maintaining Workers from poverty Local government 2008 Local governments No. of workers counseled by gender households out of poverty households remain above the agencies concerned onward (using portion of civil and ethnicity • Provide assistance in reducing poverty poverty line after construction with poverty reduction works tax revenue) Training offered factors period No. of poor workers assisted to start • Provide counseling on preparing for a business transition • Provide training for further employment • Assist in preparing a business plan for starting a business once the construction work is done J. Tourism development New tourist-based businesses MOR, contractors, 2008 Tour companies, railway, No. of tourists in area • Link local communities with tour Cultural and village tours led by tourism bureaus, onward local businesses, local Increase in number of tourist facilities operators and companies to develop two poverty villages poverty reduction governments and revenue historical cultural package tours Tourism-related employment, offices, and women’s No. of the poor, ethnic minorities, • Develop local handicrafts for sale by especially for the poor, women, federations and other vulnerable people that women and poor households at stations vulnerable people, and ethnic participated in tourism services and and tourist sites minorities: handicrafts, by gender • Provide start-up funding for restaurants - Poverty villages No. of persons trained by gender and guesthouses near scenic and - Tujia villages historical sites Employment for women • Develop posters on environmental and Training, of which 50% are cultural relics protection women • Promote tourism in the region

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Proposed Actions Targets Agencies Involved Timing Funding Source Monitoring Indicators • Involve local poor, women, and vulnerable through provision of tourism skills training

Source: Consultant.

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