Resettlement Planning Document

Summary Resettlement Plan Document Stage: Draft for Consultation Project Number: 39149 April 2007

PRC: Western Roads Development Project

Prepared by the Government of Guangxi Autonomous Region for the Asian Development Bank (ADB).

The summary 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.

SUMMARY RESETTLEMENT PLAN

A. Status of the Resettlement Plan

1. The proposed Western Guangxi Roads Development Longlin- Expressway) Project includes the construction of (i) a 177 kilometer (km) expressway from Longlin County ( Province border) to Baise City (), (ii) connector roads with a length of 28.6 km, (iii) a rural roads component comprising rehabilitation of 6 sections with a total length of 310 km, (iv) upgrading 750 km of village access roads, and (v) 50 township bus stations. One Resettlement Plan (RP) covers the expressway and related connector roads, interchanges, toll stations, and service areas. Other RPs cover the 6 local roads. A Resettlement Policy Framework and Procedural Guideline addresses the village roads and the township bus stations. The Expressway is based on preliminary design while the local roads are based on feasibility level study. The location of towns where bus stations will be built is known, but sites have not been decided so far. The village roads will be selected during implementation. Prior to commencement of land acquisition and house demolition, Guangxi Communications Department (GCD) will update all RPs based on detailed measurement survey and submit them to ADB for approval. During project construction, if there is significant material change in project scope or other causes, the RPs will be revised, disclosed to APs and submitted to ADB for approval prior to commencement of such changes.

B. Scope of Land Acquisition and Resettlement

1. Expressway Component

2. Since 54.3 km (30.6% of the expressway length) is bridges and tunnels, the Project impacts on land and houses have been reduced. The proposed expressway and its connector roads will affect 10 townships and 35 administrative villages in Longlin County, Tianlin County, and Youjiang District of Baise City. According to the project preliminary design, 22,130 mu of land will be acquired, of which about 38% is farmland (comprising 12.6% paddy field, 13.3% dry land, and 11.1% orchard) and 42.4% is forest land, 13% is wasteland and 5% is other. Based on the Chinese standard for impact assessment, the equivalent of 3,990 persons would lose all their land and agricultural livelihoods. However, since the expressway will actually cross many parcels of scattered farmland, it is estimated that the average loss of land per household would be 20%, which means the number of partially affected people would be in the order of 19,950 persons. Another 3,652 mu of land is estimated to be occupied temporarily during the construction phase. Also, 98,265 m2 of houses will be demolished, necessitating relocation of 831 rural households with 3,447 persons. Most of these households will be moved a short distance to another site within their original group or village. All land, housing and other assets will be compensated at replacement value.

2. Rural Roads and Transport Service Component

3. According to the feasibility study report, the 47-km Jingxi to Longbang Class II Road will have 10-km new alignment. It will acquire 2,055 mu of land, including 38% paddy field, 20% dry land, 1% cash crop/forest land, 24% forest land, 15% waste land and 2% other. Land acquisition will partially affect 6,020 persons. It will also require the demolition of 9,285 m2 of rural houses, requiring the relocation of 95 households. The 37-km Napo to Dingye Class II Road will acquire 1,262 mu of land, of which 54% is cultivated land which will partially affect 2,899 persons. It will also require the demolition of 1,000 m2 of rural houses, requiring the relocation of 10 households. The 117-km Tianlin to Leye Class III and IV Road will acquire 2

613 mu of land, of which 72% is cultivated land and will partially affect 870 persons. It will also require the demolition of 5,200 m2 of rural houses, requiring the relocation of 52 households. The 106-km De’e to Shali Class III and IV Road will acquire 327 mu of land, of which 27% is cultivated land and will partially affect 413 persons. It will also require the demolition of 2,101 m2 of rural houses, requiring the relocation of 21 households. The sites for 50 township bus terminals will be selected by the township governments. The selection of the 750 km of the village road upgrading and the potential resettlement impacts will be determined during project implementation.

C. Policy Framework and Entitlements

4. The resettlement objective is to achieve equal or better income and living standards in line with the PRC Land Administration Law (2004), State Council Document No. 28, and ADB’s Policy on Involuntary Resettlement. The GCD will ensure that any people losing land, housing, other assets or income sources will be assisted to fully restore their income and living standards. Land compensation standards for the expressway are based on 10 to 12 times the average annual output value (AAOV). The AAOV are going to be updated based on detailed survey, so the actual compensation rates are not yet available. For the RP, the compensation rates are estimated to range from CNY10,980 to 22,449 per mu for paddy field; CNY8,965 to 18,140 per mu for dry land; CNY20,900 to 46,260 per mu for vegetable land; CNY13,966 to 17,626 per mu for orchard; CNY31,317 to 36,883 per mu for fish pond; CNY7,569 to 8,163 per mu for cash forest land; CNY6,728 to 7,256 per mu for timber forest land; and CNY841 to 907 per mu for waste land. Green crops will be compensated based on 0.5 times AAOV except for sugarcane land, which is based on 1 times AAOV. Those people losing land temporarily during construction will receive a payment equivalent to production value foregone for the period of loss, which is expected to be 2 years. The land used temporarily will also be restored by the contractor to the original condition; the contractors will deposit funds with Baise City Land and Resources Office (BL&RO) to ensure this restoration is completed properly.

5. For demolished structures, replacement value will be based on compensation rates in Baise City—CNY400/m2 for brick concrete structure, and CNY280/m2 for brick timber structure. Those losing housing will be able to acquire new housing sites with their existing group or village, and close to a road. All sites will be provided with water supply, electricity, telephone and TV cable, where available. There will be no reduction in house compensation for depreciation, and people can salvage materials from their old houses.

D. Resettlement Strategy

6. Efforts to minimize resettlement effects have been made based consultations with local officials during the setting of the alignment for the preliminary design, which avoids towns and large clusters of rural housing. In the project area, the per capita land holding is between 1.01 (Jingxi County) and 1.96 (Tianlin County). The land acquisition for the alignment, particularly at the interchanges, will have relatively significant impact on the income and livelihood of the affected people, especially since many households are poor and ethic minorities. To mitigate such impacts, various rehabilitation measures have been proposed. Detailed resettlement and rehabilitation plans for those seriously affected villages will be developed and included in the updated RP for the expressway component. Based on consultations, most affected persons (APs) prefer to get cash compensation directly. The cash will be used to expand businesses, improve animal husbandry, plant cash crops and tress, and provide income security until they find outside work. It is also recognized that new employment 3 and income generation opportunities would arise during construction and after the expressway is completed.

7. GCD will ensure that the resettlement entitlements are provided to the people affected prior to the commencement of ground clearance and demolition. Land compensation and resettlement subsidy will mainly be paid directly to the affected families through bank accounts. Housing compensation and compensation for young crops and other assets will also be provided directly to people losing those assets. The relocated families will receive moving allowances and temporary housing allowances. Compensation for infrastructure will be paid to the concerned government departments for restoration. Also, expressway contractors will give priority to affected households in the allocation of unskilled jobs during construction.

E. Institutional Arrangements

8. GCD will assume the overall responsibility for implementing resettlement according to the approved RPs. For the expressway component, a Resettlement Division within the Longlin- Baise Expressway Construction Headquarters will be directly responsible to coordinate the planning, supervision, financing and reporting of resettlement for the expressway and connector roads. A resettlement leading group and office was established in Baise on October 20, 2006. Offices will also be set up in all the relevant counties, and staff will be assigned in all affected townships and villages to implement resettlement. The county land and resources offices will take the primary responsibility for the resettlement consultation, implementation and timely delivery of entitlements, with assistance from concerned townships and villages.

F. Vulnerable Groups

9. In this project area, many of the affected people are poor and predominantly Zhuang nationality. For economically vulnerable people, including elderly living alone, disabled, household headed by women, and poverty households, the Project will provide additional training and physical support. These entitlements will also be provided to other affected households facing severe impacts and risks caused by land acquisition and resettlement. The specific type of assistance will be determined according to the actual condition and their needs during detailed measurement survey, and included in the updated RP. In severely affected poverty villages, some funds could be provided to upgrade schools or medical clinics. For these measures, GCD has agreed to a budget of 1% of basic resettlement fees.

G. Consultation and Grievance Redress

10. The 2004 Land Law requires disclosure and consultation with APs. Affected villages have been notified about the key elements of the RP during meetings and interviews. Resettlement information will be disclosed through newspapers to all affected persons by the middle of March 2007. During detailed resettlement planning, there will be further notifications and consultations to discuss specific impacts and how they will be addressed. In case of grievance, all complaints will be processed based on the Government Regulation Number 431 on Grievance and Redress. People affected can submit their oral or written complaint first to the village committee or the township resettlement team. If their complaint is not settled in two weeks, they can seek redress at the county resettlement office, within one month. If still unresolved within two weeks, the Project owner will try to achieve a solution. The final redress would be sought, if necessary, in the civil courts, in accordance with the Civil Procedures Act.

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H. Monitoring and Reporting

11. The requirements for internal and external monitoring and evaluation are included in the RPs. GCD will engage a qualified domestic monitor to carry out independent resettlement monitoring and evaluation of all components with resettlement. The monitor will ascertain whether APs have (i) received their full entitlements on time and (ii) fully restored their livelihoods, income levels and living standards. The monitor will conduct a baseline survey prior to resettlement, semi-annual investigations during resettlement and annual survey updates for two years after the completion of resettlement. The household survey will include a representative number of those severely affected by loss of land, those losing housing, and those classified as vulnerable. The monitor will provide ADB and GCD with copies of the monitoring and evaluation reports twice a year during resettlement implementation and once a year after resettlement completion.

12. For the expressway component, an internal monitoring and reporting system will be established in the Resettlement Division of the Longlin-Baise Expressway Construction Headquarters. The Baise Resettlement Office will report regularly to the Longlin-Baise Expressway Construction Headquarters, who in turn will report to ADB on the progress of land acquisition and resettlement through quarterly progress reports. After completion of land acquisition and resettlement, they will prepare a resettlement completion report for submission to ADB and GCD. Also, the Guangxi Provincial Audit Department will prepare a resettlement audit at the completion of the project; GCD will provide a summary of this audit to ADB prior to PCR mission. For the other project components, internal monitoring will be done by GCD and the land & resources bureaus; progress will be reported to ADB every six months.

I. Resettlement Cost and Implementation Schedule

13. For the Expressway, the resettlement budget estimate is CNY523.6 million; for the 4 local roads, the resettlement budget estimate is CNY48.9 million; and for other components, the resettlement budget estimate is CNY8 million. The total resettlement cost for the Project is thus CNY580.5 million ($74.4 million). This includes compensation for land, housing, other assets, moving allowances, assistance for vulnerable groups, infrastructure, administration, taxes, monitoring and evaluation, and contingencies. GCD will guarantee to supplement the resettlement budget, as may prove necessary, to meet any shortfall which emerges in achieving the resettlement objectives.

14. The resettlement implementation schedule has been prepared based on the Project construction timetable agreed by GCD and ADB. It is planned that land acquisition and housing demolition for the expressway component would commence by June 2007. For the other project components, some implementation will also commence about mid 2007; village roads will commence in 2008.