Resettlement Planning Document

Resettlement Plan Document Stage: Draft for Consultation Project Number: 39153 September 2007

PRC: –Lichuan Railway and Railway Safety Enhancement Project

Prepared by Ministry of Railways, Chongqing Municipality Government, and Provincial Government for the Asian Development Bank (ADB).

The 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.

RESETTLEMENT PLAN

CHONGQING – LICHUAN RAILWAY PROJECT

IN THE

PEOPLE’S REPUBLIC OF

MINISTRY OF RAILWAYS, CHONGQING MUNICIPALITY GOVERNMENT, AND HUBEI PROVINCIAL GOVERNMENT

11 August 2007

CURRENCY EQUIVALENTS (27 July 2007)

Currency Unit – yuan (CY) $1.00 = CY 7.5

The exchange rate of the yuan is determined under a floating exchange rate system. In this report, the rate used is the rate prevailing at the above date.

ABBREVIATIONS

AAOV average annual output value ACWF All China Women’s Federation ADB Asian Development Bank CLR Chongqing-Lichuan Railway Contract contract for PPTA consulting services CPI consumer price index CR EA executing agency EIA environmental impact assessment FYP five year plan GDP gross domestic product Ha hectare HIV/AIDS human immunodeficiency virus/acquired immune deficiency IA implementing agency JVC joint venture company Km kilometer LPG leading preparatory group M2 square meter MOR Ministry of Railways (PRC) Mu unit of land measurement; 15 mu=1 ha NDRC National Development and Reform Commission (PRC) PIA project impact area PSA poverty and social analysis PRC People’s Republic of China RA railway administration RP resettlement plan RCSO Railway Construction Support Office SARS severe acute respiratory syndrome SDAP social development action plan SEIA summary environmental impact assessment SEPA State Environmental Protection Administration (PRC) SIA social impact assessment SOE state-owned enterprise SPRSS summary poverty reduction and social strategy SSDI Second Survey and Design Institute, STI socially transmitted infection TA technical assistance TOR terms of reference TVE town and village YWR -Wanzhou Railway

- i - NOTES

(i) The fiscal year (FY) of the Government and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2005 ends on 31 December 2005.

(ii) In this report, “$” refers to US dollars.

- ii -

TABLE OF CONTENTS

TABLE OF CONTENTS ...... III SUMMARY RESETTLEMENT PLAN...... V

SECTION 1: INTRODUCTION...... 1 1.1 BACKGROUND...... 1 1.2 PROJECT DESCRIPTION...... 1

SECTION 2: SCOPE OF LAND ACQUISITION AND RESETTLEMENT...... 4 2.1 SCOPE AND NECESSITY OF LAND ACQUISITION AND BUILDING DEMOLITION...4 2.2 MEASURES TO REDUCE PROJECT IMPACT...... 6 2.3 ESTIMATE OF KEY EFFECTS...... 7 2.4 AFFECTED ENTERPRISES, SCHOOLS AND OTHER EMPLOYERS...... 11 2.5 PRIMARY RESPONSIBILITIES FOR LAND ACQUISITION AND RESETTLEMENT ..12 2.6 STATION LINK AND CONSTRUCTION ACCESS ROADS...... 12 2.7 VILLAGE IMPACTS ...... 12

SECTION 3: SOCIOECONOMIC PROFILE AND PROJECT IMPACT ...... 15 3.1 OVERVIEW...... 15 3.2 SOCIOECONOMIC SURVEY OF AFFECTED HOUSEHOLDS ...... 16 3.3 AFFECTED HOUSEHOLDS ...... 16

SECTION 4: POLICY FRAMEWORK ...... 25 4.1 PURPOSE AND OBJECTIVES OF LAND ACQUISITION AND RESETTLEMENT .....25 4.2 PROPERTY OWNERSHIP AND STRUCTURE OF PAYMENTS...... 25 4.3 APPLICABLE LAND POLICIES, LAWS, AND GUIDELINES...... 27 4.4 COMPENSATION STANDARDS AND RATES ...... 33 4.5 ELIGIBILITY POLICY AND ENTITLEMENTS MATRIX ...... 36

SECTION 5: RELOCATION AND REHABILITATION MEASURES...... 40 5.1 LAND ACQUISITION ...... 40 5.2 BUILDING DEMOLITION AND REALLOCATION...... 40

SECTION 6: INCOME RESTORATION STRATEGY ...... 45 6.1 CURRENT INCOME LEVEL AND VULNERABLE HOUSEHOLDS...... 45 6.2 LIVELIHOOD RESTORATION STRATEGY ...... 45 6.3 SPECIAL MEASURES FOR VULNERABLE GROUPS ...... 47 6.4 ECONOMIC REHABILITATION FOR RURAL RESETTLEMENT ...... 51 6.5 VILLAGE ECONOMIC DEVELOPMENT AND INCOME RESTORATION PLANS...... 55

SECTION 7: INSTITUTIONAL FRAMEWORK AND ARRANGEMENTS ...... 58 7.1 INSTITUTIONAL FRAMEWORK...... 58 7.2 INSTITUTIONAL OBLIGATIONS ...... 60 7.3 HIGH LEVEL COORDINATION ...... 61 7.4 CAPACITY TO PLAN AND MANAGE LAND ACQUISITION AND RESETTLEMENT .62 7.5 RESETTLEMENT PLAN IMPLEMENTATION ...... 62

SECTION 8: CONSULTATION PARTICIPATION AND GRIEVANCE REDRESS...... 64 8.1 PROJECT STAKEHOLDERS ...... 64 8.2 MECHANISMS FOR STAKEHOLDER PARTICIPATION ...... 64 8.3 LOCAL INSTITUTIONS OR ORGANIZATIONS ...... 71 8.4 PROCEDURES FOR REDRESS OF GRIEVANCES ...... 71

- iii - SECTION 9: RESETTLEMENT BUDGET AND IMPLEMENTATION SCHEDULE ...... 74 9.1 LAND ACQUISITION AND RESETTLEMENT COSTS...... 74 9.2 ANNUAL BUDGET...... 76 9.3 SOURCES OF FUNDING ...... 77 9.4 TIME SCHEDULE ...... 77

SECTION 10: MONITORING AND EVALUATION...... 80 10.1 OBJECTIVES AND SCOPE...... 80 10.2 BASELINE DATA ...... 80 10.3 INTERNAL MONITORING OF RESETTLEMENT TARGETS ...... 81 10.4 EXTERNAL MONITORING AND EVALUATION...... 84 10.5 MONITORING REPORT FORMATS ...... 88

ANNEXES TO THE RESETTLEMENT PLAN

ANNEX 1: LAND ACQUISITION AND RESETTLEMENT BUDGET ANNEX 2: CHONGQING MUNICIPALITY GOVERNMENT (2005) DOUCUMENTS NO. 67 ANNEX 3: ESTIMATED COMPENSATION RATES FOR LAND REQUISITION AND REMOVAL IN LICHUAN ANNEX 4: GENDER ANALYSIS AND MITIGATION MEASURES ANNEX 5 TERMS OF REFERENCE FOR EXTERNAL MONITORING ANNEX 6 LIST OF VILLAGES ON CLR ALIGMENT

- iv - SUMMARY RESETTLEMENT PLAN

1. The Project railway is 259.263 mainline km in length from Chongqing to Lichuan. The Project will be a high-speed (200 km/hour) electrified double-track railway providing express passenger service, and fast double-stack container and freight service through one of China’s main east-west transportation corridors. The Chongqing-Lichuan Railway (CLR) will begin in the northern of Chongqing in the Municipality of Chongqing and end in Lichuan City in Hubei Province. CLR will cross 7 districts or counties, 29 townships and 84 villages. The areas near to Chongqing City are developed urban areas. Moving eastward, the areas along the alignment become increasingly rural, isolated and with lower net incomes per capita. The more rural areas along the eastern part of the alignment have experienced lower levels of development because transportation infrastructure has generally been limited to two-lane roads. This is changing as the rail and road networks are being constructed through these areas. This is important because the areas along the alignment have underdeveloped resources including tourism1 that will benefit from the development of the transportation infrastructure. Moreover, the areas along the eastern part of the alignment, , Shizhu County and Lichuan City (county-level), are all national-level poverty counties, and the residents of these counties and districts will directly benefit from pro-poor economic growth strategies. As important as the local area residents benefiting from the pro-poor economic growth strategies will be those residents further west of Chongqing. CLR is being developed as a key link in the Chengdu- corridor that will reduce transit distance by approximately 261 km and passenger transit time by about 40 percent. For the entire rail network, using a “least distance” train assignment methodology, transit distances for all train-pairs utilizing the route will be reduced, on the average, by 117 km for passenger trains and 109 km for freight trains. This represents a substantial environmental savings in terms of reduced air pollution. By providing a fast double-stack container service, CLR will provide the basis for the development of a global-class logistics industry serving China’s western regions, which is essential to further pro-poor economic growth in the poorer west. CLR will also reduce capacity constraints on existing lines, further enabling the use and extension of the rail network for lower cost and cleaner transport.

2. Compared to other railway projects, there is relatively less land acquisition and resettlement (LAR) impact associated with the project as 82.9 percent of the alignment consists of tunnels and bridges. The two most affected villages, where new railway stations will be built, will lose 13 and 10 percent of their land respectively. SSDI estimated 10,668.6 mu of land will be permanently acquired, of which 61.5 percent is farm land including cultivated dry land, paddy land, and vegetable plots. The farm land to be acquired is about 1.15 mu per capita. About 36.6 percent is woodland. About 90.7 percent of the land is in Chongqing Municipality and 9.3 percent in Hubei Province. An additional 10,113 mu of land will be temporarily acquired. An estimated total of 336,128 square meters (m2) of residential structures will be demolished. An estimated 54,956 m2 of factory and institutional buildings will also be demolished. Based on the Chinese standard for impact assessment, SSDI estimates that the equivalent of 5,823 affected persons (AP) (1,878 households) would lose all their land and agricultural livelihoods and 5,314 AP (1,715 households) will have their houses demolished, with an average floor space area of 196 m2. Since the alignment is a narrow strip of land, land acquisition will actually affect a much larger number but most of the AP will only lose a small part of their land holding. Based on other railway projects and the relatively low population density in many parts of the Project area, it is estimated that the average loss of land per household would be 15 percent, which means the number of partially affected people would be in the order of 34,963, of which those losing more than 10 percent would be about 13,987 (i.e., approximately 4,512 households having a significant loss of livelihood). A more accurate account of the number of AP will be available after completion of

1 Lichuan has prepared a Tourism Master Plan for 2020 that indicates that the number of tourists will increase from about 200,000 in 2005 to 1.2 million in 2020 based on YWR, CLR and road investments. Shizhu County is in the process of preparing a similar tourism master plan. Tourism has been identified as one of the leading growth industries for Chongqing over the next decade, and the municipal government is assisting Shizhu in the preparation of its tourism master plan as well as in coordinating efforts with neighboring Lichuan.

- v - staking based on the approved alignment and the detailed measurement surveys. Land acquisition and resettlement impacts have been lessened by aligning the railway away from the most densely populated areas, and avoiding villages, cultivated land, and facilities, where possible, based on consultations with communities.

3. The MOR in consultation with provincial and local governments prepared the initial Resettlement Plan (RP) with the assistance of the SSDI in March 2006, including a survey of 308 potentially affected households. Further field surveys completed in July-August 2006, and July 2007. SSDI provided revised estimates of impacts in June 2007, which included a revised route alignment from Chongqing to Fuling north of the River. This RP is based on the feasibility study, village surveys of 48 affected villages, 337 additional household surveys, provincial, and local government statistics, and consultations with provincial, county/district and local officials, village leaders, and affected households. The RP will be updated based on the detailed measurement survey and the final alignment that is expected to be conducted between September-November 2007. The updated RP will be disclosed to AP and submitted to the Asian Development Bank (ADB) for concurrence prior to the commencement of land acquisition.

4. The resettlement objective is to ensure that compensation and entitlements provided to AP are adequate to at least maintain their "without-project" standard of living, with prospects of improvement, in line with the Land Administration Law (2004) of the People's Republic of China (PRC) and with ADB's Policy on Involuntary Resettlement (1995), and Policy on Indigenous Peoples (1998). In addition, affected people that are poor or vulnerable should benefit either as direct beneficiaries or through special measures to safeguard and enhance their living conditions. People losing land, housing, other assets, or other means of production will be compensated at replacement cost and assisted in restoring their incomes and living standards. In 2004, the PRC Constitution was amended to ensure that people are compensated according to law for land expropriated for public projects. The State Council (SC), China’s highest policy making body, issued its Decision on Further Reform to Strictly Implement Land Administration, State Document No.28 (2004), which requires public consultation with all AP prior to approval of projects, maintenance of the living standard of AP, strengthened monitoring procedures, and public accounting of the receipt and distribution of resettlement funds. Payments will be made to the village collectives, and they will determine the allocation of funds in conjunction with AP and local government officials. Income restoration plans will be prepared for seriously affected villages with particular emphasis on long-term sustainable income enhancement strategies.

5. The RP stipulates eligibility and entitlement provisions for AP. SC Document No. 28 establishes that the level of maximum compensation rates for land acquisition and resettlement subsidy of up to 30 times the Average Annual Output Value (AAOV) may be increased if it is not adequate for income restoration of AP. The compensation standards meet the Central Government’s policies as adopted by local governments in Chongqing Municipality (2005) and Lichuan City (2006). The local governments are utilizing the revised implementation methods in accordance with the Land Administration Law and SC Document No. 28. Compensation for temporary land loss will be paid directly to the AP and the land will be restored to its original state after use. Compensation for rural housing losses will be paid directly to the AP at replacement cost, free of depreciation, demolition expenses and salvaged materials. In general, rural households will rebuild their own houses within the same village and at the standard of being as good as, if not better than their existing houses. Relocation sites for houses will be selected in order to minimize loss of agricultural land and to facilitate the incorporation of utilities such as piped water, electricity, cable/satellite for televisions, telephones, and provide for emergency vehicle access, based on the recently introduced practice of “clustering” houses where appropriate. Crop and tree losses will be directly paid to the AP. Factories, schools and other institutions and enterprises will be compensated at replacement value for relocation and reconstruction, using the latest market prices for materials and labor.

6. The 84 villages on the alignment have been identified as being affected by CLR. The 337 households with a population of 988 people surveyed by the Consultant were selected by local officials, as being the most affected by CLR. The average net income per capita for the surveyed

- vi - population is CY 3,601. About 7.5 percent of the total surveyed (poor APs) households had net incomes per capita below CY 900, which is the official national poverty line for 2005.2 Special assistance such as free labor for building houses, materials, and additional funds will be provided to the vulnerable households that include orphans, widows, and the disabled, and are largely dependent on agricultural production for their income.

7. Households headed by women represent only 2.5 percent of the total surveyed households. While this may seem a low representation, it should be noted that in these rural areas, it is generally uncommon for a woman not to live with a family. Although there were very poor households in the small sample of women-headed households, there were also ones with net incomes well above the poverty line, especially near urban areas, where there are more opportunities to earn income from wages or business. Households with a disabled or infirmed member constitute 6.6 percent of the surveyed households. As with women-headed households, there are poor as well as wealthier households in this group. Special assistance will be provided to the vulnerable households by local governments on a case-by-case basis consistent with the needs of the household.

8. Minority households constitute 46 percent 3 of the surveyed households, and all are concentrated in Shizhu County and Lichuan City, which are autonomous districts. The minorities surveyed include 434 Tujia and 11 Miao While there are poor minority households in the sample, there are also wealthier ones as evidenced by the net income per capita (CY 5,029) in Shizhu, where 302 of those surveyed were Tujia and 2 were majority Han. Overall poverty rates are higher in these counties because many of the areas have been isolated from transport infrastructure, and have thus lacked access to markets as well as other goods and services. The counties are addressing the access issue by increasing transportation infrastructure and services, and through village relocation schemes. In addition, some areas are relatively resource “poor,” including limited tillable areas. One might then conclude that the income levels of both minorities as well as majority Han reflect their relative resource endowments, investments in their respective areas, and their general living conditions rather than resulting from their ethnicity. Because of the higher rates of poverty in Shizhu and Lichuan, special measures have been included such as hiring preferences and additional training and micro-finance opportunities. The Tujia and Miao have been politically and economically integrated into Chinese society for centuries and their customs and practices are respected and protected.

9. Each village will utilize the land compensation and resettlement subsidy for income restoration. In accordance with the requirements of SC Document No. 28, compensation for loss of land will be principally distributed to AP although the method of distribution will be determined by the village in conjunction with government officials. In this process the AP will be consulted through consultative meetings to obtain their preferences. Local officials expect that schools, factories and enterprises will rebuild locally and that these organizations and their employees will be fully compensated for any and all losses and costs associated with relocation.

10. MOR, local governments, and county-level land acquisition and resettlement offices and land administration bureaus, will be responsible for implementing and delegating resettlement activities to township officials and village committees. The estimated resettlement cost including monitoring budgets and physical and price contingencies, is CY 541.35 million (about US$72.17

2 The 2005 poverty rates in the counties/districts crossed by the alignment are: 6.8 percent in Chongqing and 32.3 percent in Hubei. The average poverty in all counties/districts crossed by the alignment is 10.7 percent. 3 The original proposed alignment had fewer impacts which were mainly in the western section where ethnic minorities live; therefore, they had been targeted in the household survey. When the alignment was changed, the significant increase in impacts was in the eastern section which does not have ethnic minorities. Consequently, additional surveys of newly affected household were conducted to provide a more representative sample, but the number of ethnic minorities in the sample remains much larger than their degree of impact, now estimated to be less than 10% of APs. A new baseline survey will be conducted to give a more balanced sample.

- vii - million). The resettlement budget will be adjusted based on the actual measurement of physical losses and their replacement values.

11. APs have been and will continue to be informed and consulted about the likely impacts of the Project at various stages. Stakeholders consulted include heads of affected households, village heads and representatives, local government agencies and departments, and vulnerable groups, including women and ethnic minorities. Before Project appraisal, resettlement information booklets will be distributed and local resettlement plans made available to the public, including all AP. Affected households will also be consulted and will participate in resettlement activities, including compensation standards, allocation and utilization of compensation, detailed measurement surveys, location of underpasses, new housing sites, and grievance redress. During the actual implementation of land acquisition and resettlement, the AP and affected enterprises can appeal any problems or grievances regarding land acquisition, housing demolition and relocation, compensation and resettlement to five levels: the local land administration, local government, the Project owner, the external monitoring agency, and/or the courts. In addition, there will be frequent opportunities for AP to interact with representatives of the various organizations involved in the implementation and management of the Project through public meetings and hearings, consultations, and site visits to discuss issues related to compensation and resettlement.

12. MOR and local land acquisition and resettlement offices, in collaboration with the county resettlement offices, will be responsible for internal supervision and monitoring of compensation payments, house rebuilding/relocation for AP, land redistribution, and grievance redress. Progress reports will be prepared by MOR and submitted to ADB on a quarterly basis, until resettlement is completed. MOR will then prepare a resettlement completion report for submission to ADB. In addition, an independent monitor will be contracted by MOR to carry out the external monitoring and evaluation work. The tasks include: baseline survey, review and verification of the compensation payments, status of land acquisition and compensation payments, appraisal of grievance redress procedures, AP's reaction/satisfaction with entitlements and compensation, assessment of the restoration of livelihoods of AP, and drawing lessons learned for future resettlement planning. The external monitor will prepare monitoring and evaluation reports for submission to MOR and ADB every 6 months until the completion of resettlement activities; thereafter, annual evaluation investigations will be conducted for 2 years and reported to MOR and ADB.

13. Affected households will receive training and skills development assistance that will facilitate income-generating activities. Other assistance such as preferential hiring of AP by construction companies and access to capital will also be provided. Local poverty alleviation programs provide a valuable source of additional assistance to affected vulnerable groups and they will be targeted during the implementation of the RP. Vulnerable groups including ethnic minorities will be given hiring preference during railway construction and operations. Local resources will be maximized to the extent possible. Provision has also been made in the resettlement budget for complementary training and micro-finance assistance that will be utilized to ensure that vulnerable groups including ethnic minorities are able to capture Project benefits and opportunities.

14. In addition, Chongqing and Hubei have established programs that directly benefit affected villages and persons. There are very active village development and modernization programs that provide infrastructure and funds for enterprise development. All of the counties have a village relocation program that provides new and higher standard housing, infrastructure and access to services such as health clinics. Officials stated that if there are any affected villages that are in mountainous area and qualify for relocation they will be allowed to leverage their compensation funds from CLR towards their contribution to the program. Thus, AP could greatly benefit from the CLR provided the resettlement and income restoration activities are properly planned and implemented.

- viii - 15. MOR and local agencies have extensive experience in land acquisition and resettlement (LAR), including responsibility for LAR for the expressways and railways that are now under construction or recently completed that parallel or connect with CLR, and other roads and bridges in the area. This experience will facilitate appropriate LAR under this Project. As is the normal procedure, the local government will provide training in LAR procedures to the relevant county and township officials and village leaders who are directly involved with implementation. This will also provide an opportunity to explain ADB resettlement policy and requirements.

- ix -

SECTION 1: INTRODUCTION

1.1 BACKGROUND 1. This Resettlement Plan (RP) is prepared by the Ministry of Railways (MOR) of the People’s Republic of China (PRC), Chongqing Municipality Government, and Hubei Provincial Government with assistance from national and international consultants. In March 2006, MOR prepared a Feasibility Study (FS) report for the Chongqing-Lichuan Railway (CLR) Project with assistance from the Second Survey and Design Institute (SSDI). Also funded by MOR, a Project Environmental Impact Assessment (EIA) and Resettlement Plan (RP) were prepared. These reports were later updated in September 2006, and June 2007. The Project Proposal including financing by ADB was approved by the National Development and Reform Commission (NDRC) on 25 January 2007. The Feasibility Study is expected to be submitted to NDRC for approval in August 2007.

2. MOR, Chongqing Municipality and Hubei Province are responsible for the preparation and implementation of the RP. The Foreign Capital and Technical Import Center (FCTIC) of MOR is the Executing Agency (EA) for the Project and the Chongqing-Lichuan Railway Company (CLRC) when the joint venture between MOR and Chongqing Municipality is established will be the Implementing Agency (IA).

3. The RP follows the ADB format. Sections 2 through 10 cover specific topics in accordance with ADB guidelines for preparation of Resettlement Plans.4 Annexes of the RP include supportive background and additional data. The information contained in the RP is based on survey data collected by SSDI during initial project preparation tasks and by the Consultant during July-August 2006. Based on the final alignment, there will be a review of affected land and its uses prior to the undertaking of the detailed measurement survey (DMS) and completion of the full census of Affected Persons (AP). The DMS and census will provide the basis for an update of the RP that will be prepared and submitted as the Final RP to ADB for concurrence.

1.2 PROJECT DESCRIPTION 4. The CLR will become an important link in MOR’s national railway network connecting east and west China (Figure 1-1). The CLR alignment will extend from Chongqing’s main urban area (considered part of ) into Hubei Province, which is located in China’s central region, where it connects to the more developed rail network. As Figure 1-2 shows, CLR connects to existing lines in the Chongqing urban area, parallels the northern bank of the Yangtze River and the recently opened (May 2006) YuHai to Fuling on the southern bank of the Yangtze River, where the YuHai Line heads southeast to Hushuo. CLR passes through into Fuling, both of which will have new passenger/freight stations, and crosses the Yangtze River just north of Qingxi on a 1.5 km bridge, and continues to parallel the Yangtze to Fengdu, where the line drops to the south and away from the Yangtze to cross the Longhe River 4 times between Fengdu and Shizhu. CLR then travels in an east-northeast direction and between national (Xingdoushan) and provincial (Dafengbao) nature preserves, until it connects with the Yichang- Wanzhou Railway (YWR) at Lichuan. Between Chongqing and Fuling, CLR also parallels the existing Chongqing-Changshou-Fuling expressway, and between Shizhu and Lichuan it follows the Chengdu-Shanghai Expressway that is currently under construction.

5. The total length of the alignment is 259.263 mainline km. The Project envisages the construction of an electrified Class 1 double-track railway that is designed for a maximum speed of 200 km/hr in order to provide passenger express, fast double-stack container and fast-freight services. The proposed line will have 8 stations (see detailed list in Table 2-2 in Section 2). The Project will cross 7 districts and counties, 29 townships, and 84 villages in Chongqing Municipality and Hubei Province.

4 Handbook on Resettlement: A Guide to Good Practice, Asian Development Bank, Manila, 1998.

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Figure 1-1: General Location Map of CLR

i 108° 00E e 118° 00E w g n o h Z

o t N SHANDONG -Xi'an Railway Project 0 50 100 200 Liangyungang Yellow Sea Kilometers Shanyuan Xinyi Baoji HENAN Shangqiu Jiangzhou 34° 00N Xingong 34° 00N Xuchang GANSU Xi'an Suixi Huaiyin Huxian Baofeng Zhoukouzhen Sundan Dafeng SHANXI Jin-Jiu Railway Technical Benghu Hai'an Enhancement Project Fuyang Nanyang Yangpingguan Yunxian Qidong Ankang Guangyuan Maohaguan Huangzhou Hefei Baishui Xinyang Xiangtan Shanghai Shucheng SHANGHAI HUBEI Huanyan Changxing Fengxian Anli Macheng Xuancheng Dazhou-Wanzhou Railway Project Jinmen Gaotiepu Chengdu Quxian Wanzhou Yichang Changjiangfu

Suining Yaqueling Hefei- Railway Project Lichuan Kangtong Shexian Yichang-Wanzhou Qimen ZHEJIANG Jiajiang Railway Project Shouchang Neijiang Fuling Jinhua Shimen Chongqing Dayong Shangrao Chongqing-Lichuan Yiyang Hengfeng Railway Project Xiangtang 28° 00N Jiang'an 28° 00N HUMAN Yongping Wanzhou Ningxiang Yingtan Jiehou Xinyu Zhuzhou Gongxi Pingxiang Fu'an South GUIZHOU Hushuo FUJIAN China Shaoyang Sea Shunchang Nanping Weiming Hongyang Chaling Liupanshui Yongzhou Anshun Duyun Transport Bottleneck Existing Railway-Double Track Railway under constraction The World Bank Financed project Provincial Capital Existing Railway-single Track Provincial Boundary Japan Bank for International Cooperation financed project City/Town Project Railway Asian Development Bank financed project Boundaries are not necessarily authoritative 108° 00E 118° 00E Source: Consultant

6. The Government’s policy on railway development is focused on: (i) removing constraints and expanding the system; (ii) encouraging joint ventures with local railways to promote the development of local economies; (iii) improving efficiency by using new technology and modern management tools in planning and operations; (iv) reducing operating subsidies through appropriate pricing and commercialization of services; (v) instituting institutional and structural reforms to increase MOR’s autonomy and accountability; and (vi) encouraging non-government investment in infrastructure and related services.

7. The rationale for the CLR Project reflects: (i) completing the needed link in the Hu-Han- Rong corridor (Shanghai to Chengdu via Nanjing, Hefei, Wuhan, Yichang, and Chongqing); (ii) creating passenger service in an area not now well served by trains or roads; (iii) promoting development in west China and allowing the densely populated areas of Chongqing and Sichuan to become another economic growth area in China; and (iv) promoting pro-poor economic growth in an area which has not enjoyed the robust growth of the rest of China. Three of the seven districts along the alignment are classified as national poverty counties. In the three districts average 2005 GDP per capita is 42 percent (Fengdu), 43 percent (Shizhu) and 27 percent (Lichuan) of the national average.

8. The CLR will reduce distance between Chengdu/Chongqing and Wuhan/Shanghai by 261 to 369 km. It will also reduce transit times by 40 percent. This will be especially important for the further development of tourism in the Project Impact Area (PIA), as well as for other economic activities. CLR will also enable capacity constraints to be substantially reduced on adjoining lines, thereby facilitating traffic flows to/from western China. Collectively, these positive aspects of the CLR will reduce transport costs and pollution by providing a safe and efficient fast transit of passengers and goods. The residents of the PIA will directly benefit from CLR from improved access to goods, services, and job opportunities, as well as from increased transport options at lower costs.

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Figure 1-2: General Alignment of CLR

Yichang-Wanzhou Beipeibei g Shanghai-Chengdu in q under-construction Railway (Under Const) g Si c h u a n Pr o v i n c e n N Moxinpo o Expressway h d a ay -C o w n lr s a i s f a e g R r n p ia x Caijia X e ui h ins -L g in q Jingkou g n o Jiangbei h C Liangwu Lichuan Changshou Chongqing-Lichuan railroad Chongqing-Lichuan C Fuling North Dafengbao Wangying of end AK163+300 Designed Chongqing-Lichuan railroad Chongqing-Lichuan Designed starting point AK19+700 of of AK19+700 point Designed starting h a Lichuan n ou e g Fengdu Shizhu angsh x s Shaziguan Liangwu qing-Ch p h hong ay re o C ressw Lianghui s u e exp s -F w u Shizhu c Tangjiatuo a ng lin Fuling ongqi Yuzui y g Zhanpu Fengdu n du-Ch Xingdoushan i Cheng sway expres v y o ing a r q w Fuling ng s Linshi P ho s Moxi C e u- ad r gd ilro p en a x h R e C C i u h

u o o e h o z Baitao n h i g b

R z u i q d a u u G i - n a i l

g G g r o - o H r n - Chongqing City l i C H n h a i q on a g d a g u u g R n a h C i o it h c y h i

u S C a

Legend: CLR Railway Red= June 2007 Alignment Blue= March 2007 Alignment Green= November 2006 Alignment used in DFR Expressway National Road Provincial Road Existing Railway River Passenger and Freiger Province Boundary Passing Station Under Coustruction Railway Station

Source: Consultant adapted from alignment drawings prepared by SSDI.

- 3 -

SECTION 2: SCOPE OF LAND ACQUISITION AND RESETTLEMENT

2.1 SCOPE AND NECESSITY OF LAND ACQUISITION AND BUILDING DEMOLITION

9. The total length of the Project line is 259.263 mainline route km. As noted, CLR is an electrified double-track railway. Table 2-1 shows that 29 townships and 84 villages will be crossed (affected) by CLR.

Table 2-1: Townships and Villages Crossed by CLR

MUNICIPALITY/P Total # of Villages in the Villages Crossed District/County ROVINCE County Townships by CLR Crossed by CLR C 325 5 13 H Jiangbei District 51 2 3 O N Changshou 228 5 15 G 417 2 10 Q Fengdu County 344 7 16 I N Shizhu County 218 6 24 G CHONGQING Subtotal 1,583 27 81 Lichuan City 575 2 3 HUBEI HUBEI Subtotal 575 2 3 TOTAL 2,158 29 84 Source: SSDI July 2007.

10. An important issue that needs to be understood is the resettlement planning process for railway development. One (or more) of MOR’s survey and design institutes prepares a preliminary feasibility study for a particular project that is complemented by preliminary assessments of likely environmental and resettlement impacts. If the project warrants further analysis based on its merits, then a more detailed feasibility study is undertaken and complemented by an environmental impact assessment and a resettlement plan that is based on some field surveys (of structures) and estimation methods (of AP and land acquisition). The PPTA Consultant conducted additional field surveys and assisted MOR to finalize the RP. An updated RP with impacts based on the Detailed Measurement Survey, approved compensation rates, and final budget will be provided to ADB prior to commencement of land acquisition.

11. The design of the CLR alignment has attempted to minimize land acquisition and resettlement (LAR) impacts with respect to its positioning (avoiding productive agricultural and developed areas), type of construction (extensive use of tunnels and bridges), and stations (use of existing facilities whenever possible). As a result, the CLR has some very noticeable features. Especially prominent is the fact that the 63 tunnels have a total length of 193.037 km (74.46 percent of the mainline alignment length) and the 123 bridges have a total length of 21.921 km (8.46 percent of the mainline alignment), and which when combined, account for 82.91 percent of the total alignment. Thus, LAR is concentrated in only 17.1 percent of the alignment.

12. The alignment has also been designed to avoid the national (Xingdoushan, Hubei Province) and provincial (Dafengbao, Chongqing Municipality) nature preserves, as well as ancient trees and historical and cultural sites.

13. The Project will have 9 stations including the existing Lichuan station that is not on the alignment but will serve passengers traveling on CLR. These include:

¾ Chongqingbei is an existing station that will be expanded within the existing railway property to accommodate CLR traffic ¾ Changshou, Fuling North, Fengdu and Shizhu will be built as mixed passenger and freight stations, and will have significant LAR impacts in their respective areas;

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¾ Liangwu is an existing passing station at the connection with the Yichang-Wanzhou Railway (YWR) ¾ Lichuan is an existing passenger station of the YWR ¾ Xinmiaoba and Shaziguan are new passing stations, and will have minor LAR impacts because they are built within the right-of-way and thus require very little additional land. .

Table 2.2: CLR Stations and Access Roads Distance Between Type of Station Name KM Post New Road(km) Stations (km) Station 0.680 Chongqingbei C1K0+680 Passenger 0.23 25.470 Passing Xinmiaoba C1K26+150 0.35 Station 39.466 Changshoube Freight & C1K60+600 1.24 i Passenger 22.565 Freight & Fulingbei C1K104+200 2.15 Passenger 42.238 Freight & Fengdu C1K146+438 1.55 Passenger 45.534 Freight & Shizhu C1K189+500 1.85 Passenger 42.481 Passing Shaziguan C1K232+420 0.25 Station 39.949 Connection Liangwu C1K272+369 = YiwanDK344+980 Passing 0.35 0.880 Station Total 7.97 Source: Consultant from SSDI.

14. Thus, with the Chongqingbei utilizing MOR land and the new passing stations built within the right-of-way, LAR impacts will be mainly concentrated at the new Changshou, Fuling North, Fengdu and Shizhu passenger/freight stations requiring substantial new land to be acquired.

15. The length of new station link roads that will be built to the 8 stations (excluding Lichuan) total 7.97 km (see details in Table 2.2). The station link roads will also have limited impacts, with again, only the new Changshou, Fuling, Fengdu and Shizhu stations requiring some land acquisition for the 6.8 km of link roads, and existing roadways will be utilized to the extent possible. Local governments will be responsible for the link roads and will follow the same regulations and compensation rates for land acquisition and resettlement.

16. The land to be acquired will be used for two purposes: the long, thin strip of land for the mainline right-of-way and the larger, somewhat rectangular-shaped tracts for new railway stations and other ancillary facilities. The right-of-way has relatively little impact on the land as it is taken from small pieces along the alignment, approximately 90 mu (6.0 ha) per km in open land. The right-of-way will be up to 60 meters (30 meters from the centerline) in width in open areas along the alignment. In tunnels and bridges it will be narrow as appropriate. The Fengdu station will require up to 189 mu (12.6 ha), while the Shizhu station will be elevated, located just above the county solid waste dump, and thus have a slightly smaller impact (less than 12 ha or 180 mu). These stations will not be built in urban areas. The stations at Changshou and Fuling will require about 180 mu each. The total land required for the 4 new passenger/freight stations is 729 mu, or 48.6 ha, which is 7% of the total land permanently acquired.

17. The buildings to be demolished are categorized as rural farmhouses and other farm (or simple, e.g., quasi-temporary) buildings, and miscellaneous buildings for enterprises. As

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indicated above, the Shizhu solid waste dump including buildings and other structures will be relocated. Some industrial facilities in Changshou and Fuling are likely to be relocated as will a power station in Fengdu.

2.2 MEASURES TO REDUCE PROJECT IMPACT

18. The Project has been designed by the SSDI. The design of the alignment is in compliance with the design standards, specifications and mandatory requirements of the State and the MOR, reflecting the development requirements and operating practices. The plan layout of the railway line and the stations to the scale of 1:2,000 shows the location of the towns, villages and various buildings and structures based on field surveys finalized during July-August 2006 and updated in June 2007, which will be affected by land acquisition and removal of above-ground structures for the Project. As noted above, SSDI has attempted to minimize the volume of land acquisition and resettlement and reduce as much as possible the negative impacts upon the residents along the railway route.

19. During the planning and design of the alignment, SSDI consulted with and took into full account the views and suggestions of local governments and the residents that might be relocated. A total of 6 alternative alignments5 were assessed utilizing a range of criteria, including minimizing acquisition of cultivated land and building demolition, and avoiding environmentally sensitive areas.

20. In order to ensure that people are not disadvantaged in the process of CLR development, efforts have been made to avoid or minimize resettlement effects. If impacts are unavoidable, compensation and rehabilitation measures will help to restore the quality of life and livelihoods of those affected. There will also be opportunities to improve the quality of life particularly for vulnerable groups. Based on this, the following measures have been or will be taken during the detailed design and construction periods in order to minimize resettlement impacts:

2.2.1 Minimize the Project Impact Area

21. A key design principle was to minimize the land acquisition and house demolition. This was achieved by avoiding cities, towns, and densely populated areas, minimizing land acquisition and locating the alignment close to rather than through villages. In addition, to the extent possible, existing roads will be utilized and upgraded for the new stations at Changshou, Fuling, Fengdu and Shizhu.

2.2.2 Reduce the Impacts of Construction

22. During the Project planning and design stages, SSDI and MOR have adopted effective measures to reduce Project impacts on economic production and living conditions of local residents. These measures include the following:

¾ Impacts and inconvenience caused by CLR construction have been recognized and appropriate mitigation measures were adopted such as building elevated passageways or underground passageways to accommodate passage of pedestrians, vehicles, and animals in order to ensure that farming activities are not disrupted. ¾ Construction scheduling was optimized in order to reduce the construction period and to plan house removal and construction during the farming slack season so as to limit the impact on agricultural production.

5 1) Track alignment entering Fuling; 2) Leaving Fuling; 3) Fengdu to Shizhu; 4) Shizhu to Zhangjiacun; 5) Connecting with the YWR at Liangwu track junction; and 6) north of the Yangtze River from Chongqing to Fuling. #1 and #6 include 2 additional Yangtze crossings to the route that crosses the Yangtze near Baishauto. Details on the 14 route options are provided in Supplementary Final Report, Volume 2.

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¾ To the extent possible, wasteland will be used for construction campsites and borrow pits. ¾ Measures have been adopted to reduce the dust and other adverse environmental impacts. Construction companies will be required to comply with the environmental regulations including selection of routes for transporting soil, stone and other materials and prevent falling of materials on roads. 23. The final alignment utilizes the route north of the Yangtze past Fuling to the Qingxi- Yangtze Bridge in order to (i) minimize the number of Yangtze River crossings, and (ii) provide service to people on the northern bank of the Yangtze. This alignment requires more land acquisition and building demolition than the previously proposed routes, but it provides railway access to an additional county, Changshou. With considerable tourism and industrial capacity based on natural gas, Changshou is expected to accelerate its economic development and thereby provide a further boost to poverty reduction in eastern Chongqing.

2.2.3 Establish a Feasible Resettlement Plan

24. When land acquisition and building demolition are unavoidable, the Project will ensure that adequate compensation and rehabilitation are provided under the RP in accordance with State and provincial regulations and ADB policy. The preparation of the RP is based on extensive involvement of local officials and AP in consultation, information acquisition, analysis of local socio-economic conditions, and identification of strategies and opportunities for income restoration and protection of AP’s livelihood.

25. Because of the high number of bridges and tunnels, specific attention will be given to assessing and monitoring temporary land acquisition for their construction. Land restoration will be required prior to the land being returned to its owners.

2.3 ESTIMATE OF KEY EFFECTS

2.3.1 Land

26. As estimated by SSDI based on MOR planning guidelines in May 2007, Table 2.3 shows the total land to be permanently acquired for CLR by county, township and type of use. Some 10,668.6 mu, or 711.2 ha, will be permanently acquired for CLR according to data provided by SSDI in May 2007. About 10.3 percent of this is paddy land and 41.2 percent is dry land cultivated. Approximately 36.6 percent of the land to be acquired is forested land, or land with trees. A total of 10.0 percent in garden plots will be acquired. About 90.7 percent of the land to be acquired is in Chongqing Municipality. The remaining 9.3 percent is in Lichuan City, Hubei Province.

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Table 2-3: Permanent Land Acquistion by CLR (mu) Cultivated Subtotal Forestry County/District Township Paddy Land Garden Plot Other Total Dry Land Cultivated Land Land CHONGQING MUNICIPALITY Huixing 15.0 425.1 440.1 84.0 5.0 30.0 559.1 Shiping 61.0 199.1 260.1 306.0 5.1 4.2 575.4 Yubei District Yulin 41.0 98.6 139.6 189.0 25.0 0.0 353.6 Yufeng 27.0 73.5 100.5 144.0 12.3 2.3 259.1 Luoqi 27.0 42.0 69.0 13.0 12.0 2.0 96.0 Yuzui 5.0 205.1 210.1 103.0 16.0 4.3 333.4 Jiangbei District Fusheng 17.0 282.1 299.1 87.1 18.0 2.0 406.2 Yanjia 48.0 322.4 370.4 281.0 45.0 2.6 699.0 Bake 45.0 146.3 191.3 42.0 12.4 1.2 246.9 Changshou Duzhou 28.0 120.0 148.0 42.0 14.0 0.0 204.0 District Fengcheng 32.0 80.0 112.0 58.0 6.0 0.0 176.0 Dandu 15.6 125.6 141.2 89.0 4.6 0.0 234.8 Zhihan 47.0 121.4 168.4 191.0 11.0 4.2 374.6 Fuling District Lidu 100.3 378.1 612.5 308.0 67.4 2.9 990.8 Zhanpu 17.9 124.6 142.5 174.6 123.5 1.1 441.7 Sanhe 20.7 156.4 177.1 215.6 24.5 0.0 417.2 Shuanglu 22.0 42.0 64.0 33.0 17.0 0.0 114.0 Fengdu County Sanjian 18.0 38.0 56.0 57.0 36.0 0.0 149.0 Lizi 27.5 62.0 89.5 62.0 24.0 0.0 175.5 Longhe 35.0 58.0 93.0 38.0 23.0 0.0 154.0 Jiangchi 45.0 154.2 199.2 185.7 33.6 0.0 418.5 Xialu 59.0 182.2 241.2 110.0 30.0 8.0 389.2 Nanbin 60.0 345.8 405.8 124.5 26.4 0.0 556.7 Sanhe 23.0 124.5 147.5 134.8 27.0 0.0 309.3 Shizhu County Shazi 80.5 121.9 202.4 265.3 8.0 0.0 475.7 Lengshui 50.0 130.0 180.0 136.0 54.0 0.0 370.0 Fengmu 40.0 70.0 110.0 64.0 26.0 0.0 200.0 CHONGQING SUBTOTAL 1,007.5 4,228.9 5,370.5 3,537.6 706.8 64.8 9,679.7 HUBEI PROVINCE Wangying 42.0 96.8 138.8 162.8 96.3 0.0 397.9 Lichuan City Liangwu 46.3 69.4 115.7 208.3 267.0 0.0 591.0 HUBEI PROVINCE SUBTOTAL 88.3 166.2 254.5 371.1 363.3 0.0 988.9 TOTAL 1,095.8 4,395.1 5,625.0 3,908.7 1,070.1 64.8 10,668.6 Source: Resettlement Tables, Second Survey Design Instititue, Chengdu, 17 July 2007.

27. During the construction of the Project, some land will have to be used on a temporary basis for access roads to construction sites, assembling or construction of Project components such as parts of bridges and culverts, storage of overburden, and construction workforce facilities and camps. The area of land to be temporarily occupied will not be finalized until construction commences. As several alignment decisions have just been resolved, SSDI has provided a very preliminary indication of temporary land acquisition. This totals about 674.2 ha, or 10,113 mu, and is mostly wasteland that has been designated for use related to work camps and for holding spoils from the tunnel construction.

28. The land temporarily occupied will be for a 1 to 2 year duration. To the extent possible, the land temporarily occupied will be dry land (i.e., less productive land) or vacant land. When the land is returned to the villages, the contractors will restore it to its original or better condition. Construction access roads will be turned over to counties or villages for their use or returned to their original or better condition. The construction contracts to be entered with construction companies will include clear provisions for restoration of temporarily occupied land to its original condition before return to the local government. The utilization and restoration of temporary occupied lands will be monitored by the township land administration bureaus.

2.3.2 Buildings

29. The estimated floor area of buildings to be demolished for the Project is shown in Table 2.4. The total floor area of buildings to be removed is estimated at 395,513 m2, of which residential floor space accounts for 85 percent of the total; simple and miscellaneous buildings normally owned by farmers account for 4,305 m2, and factories and institutional buildings account 2 for the remainder. For residential structures, the average loss per household is 196 m .

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Table 2.4: Buildings to be Demolished for CLR (m2) Housing Simple Institutions & County/District Township Brick- Total Brick-Wood Brick-Earth Subtotal Buildings Factories Concrete CHONGQING MUNICIPALITY Renhe 8,951 4,350 398 13,301 6,200 19,501 Shiping 432 2,048 2,314 2,480 323 10,000 12,803 Yubei District Yulin 852 2,521 1,245 3,373 469 3,604 7,446 Yufeng 1,006 403 1,456 2,865 613 4,046 7,524 Luoqi 2,327 265 3,423 6,015 213 3,000 9,228 Yuzui 14,450 1,360 2,345 18,155 578 837 19,570 Jiangbei District Fusheng 15,300 3,090 2,130 20,520 324 20,844 Yanjia 3,623 4,351 3,182 11,156 287 11,443 Bake 6,450 3,380 1,460 11,290 11,290 Changshou Duzhou 3,550 1,620 540 5,710 5,710 District Fengcheng 13,523 3,351 2,182 19,056 19,056 Dandu 7,523 4,351 3,182 15,056 15,056 Zhihan 8,280 3,321 2,920 14,521 1,050 15,571 Fuling District Lidu 10,094 3,623 2,501 16,218 16 25,751 41,985 Zhanpu 5,586 4,330 1,908 11,824 11,824 Sanhe 4,897 4,055 2,990 11,942 15 11,957 Shuanglu 2,488 1,749 654 4,891 4,891 Fengdu County Sanjian 3,299 1,387 248 4,934 4,934 Lizi 4,087 1,846 1,238 7,171 7,171 Longhe 2,126 1,018 860 4,004 4,004 Jiangchi 12,120 2,250 1,250 15,620 190 15,810 Xialu 8,545 4,430 11,313 24,288 200 40 24,528 Nanbin 6,545 3,430 4,280 14,255 200 40 14,495 Huafeng 2,050 2,268 5,460 9,778 125 0 9,903 Shizhu County Shazi 8,060 6,313 4,670 19,043 325 175 19,543 Lengshui 2,518 3,148 2,863 8,529 8,529 Fengmu 3,492 897 4,137 8,526 210 50 8,786 Chongqing Subtotal 162,174 75,155 71,149 304,521 3,801 55,080 363,402 Hubei Province Wangying 12,350 2,400 14,750 370 15,120 Lichuan City Liangwu 14,845 2,012 16,857 134 16,991 Hubei Subtotal 27,195 4,412 31,607 504 0 32,111 Total 189,369 79,567 71,149 336,128 4,305 55,080 395,513 Source: Resettlement Tables, Second Survey Design Instititue, Chengdu, August 2007.

30. The factories or institutions that could be affected and are discussed in Section 2.4. This includes the Shizhu municipal solid waste dump that the county is already planning on moving, and the road going to it will be part of the station link access road.

31. Table 2.5 summarizes the number of structures to be demolished along the alignment by county and district, about 90 percent of which are residential structures including outside facilities such as toilets, kitchens, and store rooms.

Table 2.5: Structures to be Demolished for CLR District/County Number of Structures Number of Residential Structures Yubei 276 244 Jiangbei 203 182 Changshou 322 289 Fuling 296 267 Fengdu 312 280 Shizhu 437 391 Lichuan 161 147 Total 2,007 1,800 Source: SSDI, August 2007.

2.3.3 Affected Persons (AP) 32. The estimated population affected by land acquisition and building demolition is shown in Table 2.6. Based on the Chinese standard for impact assessment, the equivalent of 5,823 persons would lose all their land and agricultural livelihoods and 1,715 households with 5,314

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persons will have their houses demolished. The average amount of cultivated land per capita that will be acquired is 1.15 mu.

Table 2.6: Persons Affected by Land Acquistion and Resettlement by CLR Equivalent Loss Caused Estimated Actual Impacts of Affected by House Demoiltion County/District Township by Land Land Loss (all partial)2 and Resettlement3 Acquisition1 persons persons households persons households CHONGQING MUNICIPALITY Renhe 73 489 131 261 70 Shiping 197 1316 477 186 68 Yubei District Yulin 56 376 149 56 22 Yufeng 226 1504 391 457 119 Luoqi 195 1297 595 140 64 Yuzui 254 1692 561 256 85 Jiangbei District Fusheng 113 752 253 107 36 Yanjia 293 1955 648 186 62 Bake 89 592 191 101 33 Changshou District Duzhou 148 987 339 112 38 Fengcheng 440 1760 566 373 120 Dandu 180 1203 391 186 61 Zhihan 175 1166 375 326 105 Fuling District Qingxi 135 902 290 163 52 Lidu 361 1444 473 256 84 Zhanpu 214 1429 464 93 30 Sanhe 293 1955 628 261 84 Shaunglu 89 592 186 63 20 Fengdu County Sanjian 114 457 152 38 13 Lizi 97 649 212 61 20 Longhe 152 1015 290 24 7 Jiangchi 223 1485 477 189 61 Xialu 530 2121 700 583 192 Nanbin 321 2143 703 284 93 Huafeng 190 1269 397 93 29 Shizhu County Shazi 39 263 77 28 8 Lengshui 180 1203 395 156 51 Fengmu 102 677 226 77 26 Chongqing Subtotal 5,482 32,693 10,737 5,118 1,652 Hubei Province Wangying 99 658 200 65 20 Lichuan City Liangwu 243 1617 534 130 43 Hubei Subtotal 341 2,275 734 196 63 Total 5,823 34,968 11,470 5,314 1,715 Source: SSDI, August 2007. Note 1: This is a Chinese calculation based on 100% loss of land. It provides a comparative figure for the overall degree of land loss but does not reflect the number of persons actually affected because losses are partial. Note 2: This estimate assumes and average 15% loss along the alignment and average 25% at station sites. Note 3: This is based on field investigation of structures identified for demolition (336,128 m2 of residential houses).

33. The number of those affected by land acquisition is based on the assumption that people lose all of their land holding and need full economic restoration. However, since the alignment is a narrow strip of land, most of the AP will only lose a small portion of their land holding. Based on other railway projects and the low population density in many parts of the Project area, it is estimated that the average loss of land per household would be 15 percent, which means the number of partially affected people would be in the order of 34,968, of which those losing more than 10 percent would be about 13,987 (i.e., 4,512) households having a significant loss of livelihood). An accurate account of the number of AP will be available after completion of the staking, detailed design and detailed measurement surveys.

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2.4 AFFECTED ENTERPRISES, SCHOOLS AND OTHER EMPLOYERS

34. SSDI in their July 2007 resettlement calculations report identified 7 enterprises and 12 institutions that would be affected. Two schools in Shizhu that may have been affected will now be avoided. An alignment alternative that was proposed in the July feasibility study would have required considerable noise abatement measures for the 4,000-student Shizhu Middle School. However, the alignment has since been relocated away from the school and the noise abatement measures will not be required.

Table 2.7: Affected Enterprises and Institutions Type of # of Affected Buildings District Name of Enterprise Relocation Plans Enterprise Workers Affected (m2) Fuyang Hope Primary Yubei School 15 4100 rebuild nearby School Yubei Yulin Clinic Clinic 16 5000 rebuild nearby Tongquan Gorge Yubei Cultural and Travel Travel Company 29 2100 rebuild nearby Company Chunrui Yubei Pharmaceutical and Factory 350 10000 rebuild nearby Chemical Co. Ltd Yubei Luoji Town Clinic 70 3000 unknown Yubei Shadi Primary School School unknown unknown unknown Yufeng Village of Yubei Administration 800 4000 unknown Yufengshan Town Management Changshou Committee of Yanjia Administration 50 unknown unknown Industrial Zone Xinyang Muster Tuber Fuling Factory 38 1050 unknown Plant of Jiuhan Town Shuanggui Primary Fuling School 25 2000 rebuild nearby School of Lidu Jiaxing Glass Fiber Fuling Factory 30 1400 rebuild nearby Factory Yadongya Liquor Co. Fuling Factory 35 2000 rebuild nearby Ltd of Chongqing Jintao Shale Brick Fuling Factory 30 2000 rebuild nearby Factory of Fuling Third People's Fuling Hospital of Fuling Hospital 10 800 unknown District Jinyin Primary School Fuling School 120 5906 rebuild nearby of Lidu Shuanggui Primary Fuling School 20 2000 rebuild nearby School of Lidu Jinyin Motor Cycle Fuling Factory 130 8600 rent other building Parts Co. Fuling Yinhe Coal Mine Mine 68 1000 mine will close District Solid Waste Shizhu Waste Dump 11 unknown relocate Dump Source: SSDI/Consultant field surveys, July 2007.

35. As indicated, the Shizhu solid waste dump including buildings and other structures will be relocated. The waste dump facility employs 11 people. Shizhu County officials have stated that they have already developed plans to relocate the waste dump site and that employees will not be affected other than shifting to a new location in the area. Of the other affected enterprises and institutions and excluding the 2 for which data have not been obtained, the total number of employed is 1,847, and the area to be demolished is 54,956 m2. For those enterprises or institutions that must relocate and/or stop operations, provisions will be made to ensure that workers are re-employed and receive wages during periods of stoppage.

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2.5 PRIMARY RESPONSIBILITIES FOR LAND ACQUISITION AND RESETTLEMENT

36. MOR is negotiating agreements with the Chongqing Municipality and Hubei Province for the formation of the Joint Venture Company (JVC). These agreements will allocate responsibility for the full costs of acquiring land and compensating those who lose property or livelihood as a result of the construction of CLR. Annex 3 (Chongqing) indicates recent compensation rates for areas along the alignment. MOR and Chongqing Municipality have established a joint venture entity that will own and operate CLR. The local county governments will be tasked for resettlement implementation. The railway construction support offices (RCSOs) and land administration bureaus of local governments will jointly undertake land acquisition, housing demolition, and resettlement tasks.

37. Local officials at the county and township levels are responsible for carrying out resettlement and paying compensation to the owners of the property taken (or to those with an effective right to use) and to those whose incomes are disrupted. The central question of who gets compensated for what is discussed in Section 4.

2.6 STATION LINK AND CONSTRUCTION ACCESS ROADS

38. Land acquisition and resettlement for construction access roads and for station link roads to connect new passenger and freight railway stations to existing roads (“Station Link Roads”) are included in the RP.

39. The typical station link road for a rural train station will have a 12-meter road bed for two lanes and a 4-meter shoulder at each side. The 7.97 km of station link roads will, therefore, require a 20-meter wide strip of land and an additional 10-meter width on both sides for right-of- way, which adds up to a total land area of 31.88 ha (478 mu), or equivalent to complete loss for about 416 APs, or 1,664 partially affected persons. Station locations are consistent with local development plans. Continued coordination between MOR and local governments during construction and implementation will be maintained. The local governments will provide funding for the station link roads. Local governments will acquire land for station link roads pursuant to the requirements of the Land Administration Law which have been adopted in the RP.

40. Based on the alignment, land acquisition for station link roads will occur only for the new stations that will be built in Changshou, Fuling North, Fengdu and Shizhu, and these have been included in the totals for land acquisition and resettlement in the various tables and in the budget. The other station link roads are for passing stations, so the width will be less and can follow existing road alignments.

41. Land acquisition and resettlement for construction access roads have been estimated by SSDI to acquire/occupy 360 ha (5,400 mu) for 180 km of gravel roads based on a road width of 10 m. At the completion of construction, these roads will be turned over to the local government for their use as local roads in accordance with their respective transport network development plans. Or, if the local governments choose not to accept the temporary roads, the land will be returned to its original condition including any improvements (e.g., irrigation channels, terracing) that had been made prior to the occupation of the land. The amount of land to be temporarily occupied for construction access roads is comparatively large but reflects the considerable number of tunnels and bridges that will be built. The number of persons affected by temporary land acquisition is roughly estimated to be equivalent to complete land loss for 1,800 persons, and this assumes that one-third of the land is farmland, and an average of 1 mu/capita. If the temporary roads become permanent ones, APs will be compensated for permanent loss by local governments.

2.7 VILLAGE IMPACTS

42. The Consultant conducted a survey of 27 villages as part of the resettlement assessment. As noted above in describing the amount of tunnels and bridges (82.9 percent) and that only 4

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new passenger and freight stations will be built, LAR impacts are fairly moderate. The stations in Changshou and Fuling will be in industrial areas. No village will lose 20 percent or more of its land or houses.

43. However, two villages will be affected by the construction of new passenger/freight stations: Dingzhuang in Fengdu and Yinhe in Shizhu. Both villages are primarily reliant on agricultural production. Both have developed plans for LAR, including the development of economic production restoration strategies and new business development in order to capture income-earning opportunities associated with the stations as well as through economic diversification (see Section 6).

44. In addition, Xinyang village in Fuling may be significantly affected and is discussed below. A list of 84 villages that are crossed by CLR is provided in Annex 6.

2.7.1 Dingzhuang Village, Fengdu Station 45. A new passenger and freight railway station will be built in Dingzhuang Village, Sanhe Township, Fengdu County. The village has a total of 1,347 mu of cultivated land and 1,348 households. SSDI has estimated that 180 mu of farmland will need to be acquired, which will partially affect up to 1,045 people in Village Group No. 4, 7 and 8. Group 4 includes 98 households and 311 people. Group 7 includes 170 households and 508 people. Group 8 includes 95 households and 286 people. SSDI also estimates that there will be 21 households (about 63 people based on 3.0 persons per household) affected with removal of 9,860 m2 of structures. In 2005, the net income per capita was CY 2,310. About 96 people had net incomes less than CY 900, 22 of these were disabled.

46. About 91 people and 30 households from Dingzhuang were included in the household survey. All are Han, and farm an average 1.5 mu per household. Average total household income is about CY 6,210, with 28.6 percent derived from farming, 17.7 percent from livestock, 42.3 percent from business activities, 10.4 percent from wages, and 1 percent from relatives sending money. Average net income per capita is about CY 1,503. There are 5 poor households with 17 people with net incomes per capita below CY 900. These include an elderly couple 73 and 72 years of age of which, one (female) is disabled. Another household of 4 adults also has an elderly (81) disabled female. These and other vulnerable persons will require special attention if affected by LAR.

2.7.2 Yinhe Village, Shizhu Station 47. Yinhe Village, Shizhu County, is about 2.5 km away from the county seat and 1.5 km north of Xialu town. The total land area is 9.88 square km. It has 4 village groups and 600 households with 2,367 people, of which, Tujia minority account for 98.3 percent. The village has 1,900 mu of cultivated land (0.8 mu/capita). The main grain products are rice and corn, and the main cash crops are rapeseed, chili peppers, mulberry, and watermelon. Animal husbandry, primarily includes the raising of pigs and rabbits. The village has built 50 water storage ponds with a capacity of 2,000 cubic meters each. It has 4 km of rural roads. In 2005, the net income per capita was CY 2,432. CLR will affect two groups of the village: Yinzidong Group has 169 households with 556 people, and 537 mu of cultivated land; and Guanghui Group has 199 households with 756 people, and 683.1 mu of cultivated land.

48. Recent investigations by SSDI indicate that 18 households (with 71 people) will be affected by the removal of 7,430 m2 of structures and the acquisition of 189 mu of land. The land acquisition would partially affect 8 households and 30 people in the Yinzidong Group, and the impact of land loss would be 83 mu, of which 24 mu are cultivated. The land acquisition would partially affect 10 households and 41 people in the Guanghui Group, and the impact of land loss would be 106 mu, of which 33 mu are cultivated.

49. A total of 41 households and 152 people were included in the household survey. All are Tujia. Total average household gross income is about CY 27,888, of which about 14 percent was

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derived from agriculture, 6 percent from livestock, 48 percent from business activities, 12 percent from wages, and 20 percent from relatives (including spouses) working away from the village and sending money to the households. Average net income per capita is about CY 4,636, which is nearly double the average net income for the village. Only one household with 4 members has a net income per capita below CY 900. This is a young couple with a 9-year old daughter and a 6- month old son. They farm and receive additional support from family members working away from the village. With a total income of CY 3,000, this household is especially vulnerable to any loss of income resulting from LAR.

50. There are also 4 households with a disabled member with net incomes per capita at CY 1,083, 1,500, 1,500 and 5,500. However, the households include 2-3 adults. There are also two single women-headed households, aged 60 and 71, with net incomes per capita of CY 2,000 and 3,000 respectively. In addition there is another female-headed household, age 42, that includes 3 sons, ages 18, 15 and 4 years, with a net income per capita of CY 1,450, with the majority of income coming from the husband who works away from the village. All of these households are vulnerable to potential disruptions caused by LAR and will require special attention to ensure that they are not negatively affected.

51. Both villages have also indicated in their village development plans that they plan to provide special measures to ensure that potentially vulnerable households are able to be successfully relocated and/or not suffer financially from loss of economic production as a result of LAR.

52. MOR and local officials are very familiar with the resettlement process. Utilizing the CLR Project as a mechanism to raise people’s living standards conforms with national objectives to reduce poverty. As described in more detail in Section 3, there are funds and human resources available to assist the potentially seriously affected villages, and ensure that they fully benefit from the opportunities created by the Project. MOR recognizes that the Project can be used as a means to dramatically improve people’s living standards, and can thus serve as a model for future infrastructure resettlement projects.

2.7.3 Xinyang Village, Fuling 53. The village has 3 groups totaling 564 households and 1,738 people, of which 1,200 are laborers. This is a Han village. The village economy is based on agricultural production and processing. There is one plant that produces final products and 56 small plants that produce semi-finished goods. The primary products are Sichuan pickles and preserved fruits and vegetables. The net income per capita is 2,700 CY.

54. The village has 1,790 mu of cultivated land and 450 mu of unused land and waste land that can be upgraded to cultivated land. The exact location and specific LAR impacts resulting from station development are currently unknown. The typical station for CLR requires about 180 mu, or about 8 percent of the total cultivated and unused land.

55. As a recently district-planned village, it has comprehensive infrastructure and is located close to the urban center of Lidu Township.

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SECTION 3: SOCIOECONOMIC PROFILE AND PROJECT IMPACT

3.1 OVERVIEW

56. Table 3-1 shows socioeconomic indicators for the PIA districts and counties. Those districts closest to the Chongqing downtown area (Yubei, Jiangbei) as well as Changshou and Fuling, are relatively well developed with residents involved in industry and services along with some agricultural production. Chongqing is a major industrial and tourism center in China. These districts also have a range of transportation infrastructure including rail, expressways, shipping on the Yangtze River, and relatively easy access to Chongqing’s international airport. GDP per capita is generally near or above the national average.

57. Moving eastward along the CLR alignment, Fengdu, Shizhu and Lichuan are national- level poverty counties, and their GDP per capita is well below the national average. These counties have lacked transportation infrastructure, relying primarily on two-lane roads. Expressways and rail are being constructed and/or planned to connect these districts to China’s economy. Shihzu is an autonomous minority region with 72 percent of its population belonging to minority nationalities, and Lichuan also has a large minority population (46 percent). The terrain in these counties is mostly mountainous, which limits the scope of agricultural production. Developing infrastructure is considered a critical investment necessary for the exploitation of the natural resources including tourism in these counties. With poverty rates of 11.2 percent of the total population in Fengdu, 16.8 percent in Shizhu, and 32.3 percent in Lichuan, poverty alleviation based on pro-poor economic development is a key focus for the current 11th Five Year Plan (FYP).

Table 3.1: Socioeconomic Indicators for CLR PIA Counties/Districts (2005) Yubei Jiangbei Changshou Fuling Fengdu Shizhu Subtotal for Lichuan Socioeconomic Indicators Unit Total PIA District District District District County County Chongqing PIA City Total area of land km2 1,452.03 220.77 1,424 2,941.46 2,904 3,012 11,954.26 4,607 16,561.26 Total year-end population 10000 87.72 49.57 88.56 111.78 79.5 51.91 469.04 84.57 553.61 Including: male 10000 44.98 25.18 45.58 57.37 41.7 26.88 241.69 44.5 286.19 Including: rural population 10000 54.62 8.62 68.85 80.03 37.8 44.25 294.17 72.54 366.71 Minority nationalities number 8,300 2,647 4,100 6,000 11,825 373,700 406,572 386,500 793,072 People in poverty 10000 0.76 2.24 19450 8.36 8.87 8.71 19,478.94 27.26 19,506.20 Number of towns number 30 3 18 46 31 32 160 14 174 Number of villages number 325 51 228 417 344 218 1,583 575 2,158 Number of poverty villages number 11 0 10 155 89 100 365 316 681 Villages without highway access number 0 0 2 0 31 51 84 9 93 Villages without electricity number 0 0 0 0 0 0 0 0 0 Villages without phone number 0 0 0 0 0 17 84 40 124

Villages with unsecured H2O number 2 2 10 100 307 174 595 61 656 Area of farmland mu 436,623 54,386 36,857 1,008,375 556,500 441,495 2,534,236 871,071 3,405,307 Farmland per capita mu 0.5 0.11 0.04 0.9 0.7 0.85 0.54 1.03 0.62 Rural farmland per capita mu 0.8 0.63 0.05 1.26 0.83 1 0.86 4.45 0.93 GDP mil yuan 14,780 13,400 10,005 13,508 3,680 2,522 57,895 3,336 61,231 GDP per capita yuan 16,849 20,716 13,309 13,375 4,629 5,802 12,343 3,963 11,060 Change in personal consumption % 10.8 5.4 5.2 11.5 13 14.7 na 9.1 na Rural net income per capita yuan 7,215 4,280 3,480 2,780 2,430 2,296 3,693 1,686 3,296 Urban income per capita yuan 10,189 10,290 10,042 9,424 9,380 7,700 9,755 5,803 9,501 Hospitals/clinics number 39 33 27 62 40 38 239 16 255 Primary schools number 266 63 146 194 175 272 1,116 235 1,351 Schooling ratio of pre-school % 99.99 100 100 99.9 99 99.3 na 97.2 na children Upgrading rate of primary schools % 99.99 100 100 100 100 99 na 100 na Upgrading rate of junior middle % 99 99 100 81 76.3 71 na 96.67 na schools Upgrading rate of senior middle % 87 100 84 72 71.1 63.2 na 41 na schools Infant Mortality Rate % 0.0058 0.0075 0.00615 0.01043 0.0136 0.012 na 0.01673 na Source: Local Governments.

58. Moving eastward from Yubei to Lichuan, urban income per capita and rural net income per capita decrease, while the ratio between them increases (e.g., 10,189:7,215 in Yubei, and 5,803:1,686 in Lichuan). This indicates rural:urban disparities that increase with lower income levels. Moreover, it is in these poorer counties where there are villages that lack access to

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highways, phone service, and safe water. Local officials commented that their 11th FYPs intend to rectify the lack of services in these areas. It should also be noted that the poorer local governments lack the tax base to provide these services compared to the wealthier counties closer to the Chongqing downtown area. The needs are greater in the poorer counties but the means to address them are more limited.

3.2 SOCIOECONOMIC SURVEY OF AFFECTED HOUSEHOLDS

59. A socio-economic survey of 308 households and 1,182 people affected by resettlement was conducted by SSDI for the Fuling-Lichuan section in December 2005, and presented in the Resettlement Implementation Plan (SSDI, Chengdu) in March 2006. SSDI prepared an estimate of LAR impacts to accompany the revised Feasibility Study that included the new alignment in July 2007, from which the data in tables 2-3, 2-4, and 2-5 have been extracted. The Consultant conducted a survey of 319 affected households and 1,059 people in July-August 2006, and 44 affected households with 169 people in Changshou during July 2007. Changshou was added to the alignment and Banan with 26 households was dropped, with the result that the final household survey totaled 337 households. Note, there was also a social poverty survey of an additional 1,033 households6 which provided supporting data for socioeconomic conditions in the vicinity of the new alignment.

3.3 AFFECTED HOUSEHOLDS

60. The Consultant’s survey of affected households is summarized in Table 3-2. As noted, there were 337 households with a population of 1,059 surveyed. The average household size of 3.1 persons is somewhat low for China, and the ratio of males to females (124.3 males per 100 females) is considerably higher. Although a definitive explanation for the low number of persons per household and females cannot be drawn from the survey, a possible explanation is that there are a number of household members working away from home, and more of these are females. However, the survey data do not support this explanation as males send home about twice the amount that females send, and the actual population living away from home is understated. However, this could be explained by the fact that when women marry, they change their place of registration. Based on discussions with local officials and villagers, areas near and Shanghai where there is considerable manufacturing and industrial activity are the most common locales for residents of the CLR PIA.

61. With respect to minority nationalities, all of those surveyed are Tujia except for 3 households totaling 11 persons in Lichuan who are Miao. Based on a net income per capita of CY 900, the 8 poor households in Lichuan and the 6 poor households in Shizhu are Tujia. The Tujia are the largest ethnic group in Shizhu and the largest minority group in Lichuan. The remaining 10 poor households (Yubei, Banan, Fuling, and Fengdu) are Han.

62. Aside from Lichuan, the net income per capita for all households (in a district) is roughly 5 to 7 times greater than the poor households. In Lichuan, the ratio is approximately 2.3. The low number of poor households in the sample (24) is somewhat surprising given that Fengdu, Shizhu and Lichuan are national-level poverty counties. However, it should be noted that the SSDI survey in December 2005 identified only 21 poor households, of which 13 were Tujia, 7 Han and 1 Miao. The net income per capita data show that while there are few poor households, those that are poor are well below the CY 900 level.

63. The number of households with a disabled or infirmed members at 6.6 percent of the total population appears high, but when one considers that elderly are also often classified as disabled or infirmed by the survey respondents, this figure becomes more reasonable compared to other household surveys in China.

6 During July-August 2006, an additional 1,033 households totaling 2,791 persons were surveyed in areas that are off but near the alignment, and are discussed in the Poverty and Social Analysis Report.

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64. There are only 8 female-headed households, all in Shizhu. Seven of these are women living alone. All are Tujia. At least two women are married, and their husbands work away from home. All of the women receive money from relatives away from home.

65. The average floor space per household is relatively high, at an average of 185.3 m2. However, this reflects housing along the alignment, where multi-storey houses are typical, and the survey shows an average of 1.9 floors per household. Multiple floors explain why the average floor space exceeds or is near the average house plot size.

Table 3-2: Socioeconomic Profile for CLR Affected Households Yubei Jiangbei Changshou Fuling Fengdu Shizhu Subtotal for Lichuan Socioeconomic Indicators Unit Total APs District District District District County County Chongqing City Population number 81 5 169 192 119 304 870 189 1,059 Households number 30 3 44 62 41 101 281 56 337 Persons/Household number 2.7 1.7 3.8 3.1 2.9 3.0 3.1 3.4 3.1 Male:Female Ratio M/100F 107.7 150 116.7 146.2 115 111 119.2 150 124.3 Minority Nationalities number 0 0 0 0 0 302 302 152 454 People in poverty number 3 0 0 5 17 15 40 29 69 Poor HHs number 10 0 356 158 23 Net income per capita of Poor HHs CNY 767 na na 480 759 757 724 793 753 Net income per capita of All HHs CNY 5,096 4,640 4,068 3,489 2,053 5,029 4,099 1,863 3,700 Number of Disabled/Infirmed number 4 0 0 3 2 7 16 1 17 Number of Female-headed HHs number 0 0 0 0 0 8 8 0 8 Average House Floor Space m2 190 120 191.8 154 120 236 188 173 185.3 Average Number of Floors/House number 1.9 1.7 2.3 1.6 1.4 2.1 1.9 1.7 1.9 HH plot size m2 114 103 117.4 183 172 190 165.3 228 175.7 Average farmed area mu 3.3 1.9 2.8 4.2 3.9 3.9 3.7 5.0 3.9 Average Large Animals/HH number 1.2 0.7 0.8 2.4 2.4 1.1 1.5 0.9 1.4 Average Poultry/HH number 5.8 3.3 4.6 43.8 14.7 4.1 14.7 2.4 12.6 Cars/Trucks number 20 2 104 9 2 11 Motorcycles number 8 0 9 10215449 53 Bicycles number 0 0 3 8 19 58 88 15 103 Farm machines number 5 0 6 88 22 64 185 10 195 Color TVs number 34 3 50 54 36 87 264 49 313 Black & White TVs number 5 0 4 29531747 81 Refrigerators number 20 0 38 9 8 18 93 12 105 Washing Machines number 17 0 29 10 2 21 79 37 116 Telephones number 29 4 108 73 40 135 389 50 439 Personal Computers number 0 0 2 3 0 8 13 2 15 Source: Consultant field surveys, July-August 2006 and July 2007.

66. The average area farmed approximates 1.26 mu per person. This obviously varies between districts as does the number of livestock and poultry, with more rural areas having higher numbers.

67. With respect to material possessions, the number of cars, trucks and motorcycles is lower than might be expected given the higher income levels. However, people may not invest in transport in areas where it is available or difficult to drive. In addition, those that are living away and sending money back home may not want to invest in transport as it would not be used frequently. The low number of bicycles is surprising until one recognizes that the PIA is generally hilly to mountainous, and riding bicycles becomes quite difficult. A number of towns along the Yangtze in the gorges in the Chongqing-Sichuan area have very few bicycles because of the hilly terrain.

68. Instead of investing in transport vehicles, people have invested in farm machinery including tractors, especially in Fuling.

69. Combined, there are more color and black and white TVs (394) than households. Similarly, there are more telephones (439) than households. Based on discussions with villagers, the purchase of refrigerators and washing machines is increasing as incomes rise. The number of personal computers remains low.

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70. Figure 3-1 shows average household income for AP in the 7 districts on the CLR alignment. Although Jiangbei is an exception and reflects a small sample (3 households and 5 APs), generally the 4 western districts that are closer to downtown Chongqing have higher total incomes than the 3 poverty districts towards the eastern end of the alignment. Wages have a greater role in Yubei, Jiangbei, and Changshou, the most urbanized and developed districts. Agriculture (including income from livestock) is a more important source in Fuling, Shizhu, and Lichuan. Also noticeable is that money sent by relatives working away from home is an important income source in Fuling, Fengdu and Lichuan. Business income is an important source in Yubei and Shizhu.

71. Importantly, the figure indicates that many households have diversified their income sources, which appears to be a key factor in increasing household income and staying above the poverty line.

Figure 3-1: Average AP Household Income (CY)

20,000 18,000 16,000 14,000 12,000 10,000 CNY 8,000 6,000 4,000 2,000 0 Yubei Jiangbei Changshou Fuling Fengdu Shizhu Lichuan

Agriculture Livestock Business Wages Sent

Source: Consultant.

72. The Consultant survey of 337 households covering 1,059 people, and the July SSDI estimate of LAR impacts provide an indicative assessment of CLR’s effects. . The average annual net income per capita for the households in the Consultant’s survey is CY 3,700. In the household survey, there are 24 households and 70 people with annual net per capita incomes below CY 900.

3.3.1 Impact Analysis and Vulnerable Households

73. All rural households who lose a large portion of their land or their house to CLR are potentially vulnerable, especially if they are poor, elderly or disabled. If resettlement does not work well for them, their household and economic well-being may be at substantial risk.

74. Survey data were reviewed to determine if particular categories of households that are the most vulnerable, including those with disabled members, headed by women, of minority nationalities, or of the poor, are at significant additional vulnerability because of these conditions.

75. Table 3-3 shows the potentially vulnerable households in the Consultant’s household survey in addition to those discussed in Section 2.6 regarding the development of the two stations. All 17 households with a net income per capita below CY 900 are considered vulnerable and included in the table. Also included is a household in Yubei that includes an elderly 91-year old female who is disabled. The 5 households in Shizhu headed by a female have been included. However, all except for one of these has a husband working away from home. The exception is a 68-year old female.

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76. Significantly, among the poor households shown in Table 3-3, the households in Fuling have very low net incomes per capita at CY 467. These households should qualify for the recently announced funds for rural poor. However, because of their low income levels, they should be closely monitored to ensure that they are able to successfully relocate and at least regain current income levels if not have them increased through priority hiring, which should also be done for all the poor households including those with higher income levels.

Table 3-3: Vulnerable Households Net Income Household District # AP # HHs Per Capita Income Remarks (CNY) (CNY) Yubei 4 1 1,675 7,000 M 42; F 41; F17; F91 disabled M 45; F 43; F 22: B&W TV, 3 1 767 2,000 Refrigerator Jiangbei 0 0 Changshou 0 0 M 32; F40; M 18: farm machinery, Fuling 3 1 467 2,000 Color TV 1 1 500 1,500 M 65: Color TV 1 1 500 2,000 M 60: Farm machinery Fengdu 0 0 F 39; F 68; F 44; F35; F40: all receive money from relatives-4 Shizhu 5 5 15,602 16,422 females appear to be married, vulnerable is F 68 1 1 850 2,000 M 62, disabled/infirmed F 36; M 38; F 4: M 1: Color TV, 2 4 1 800 4,500 phones, PC 1 1 850 1,700 M 51

M 40; M 15=1 HH; M 52; F 53; M 26; M 23=2nd HH: B&WTV, 6 2 750 3,000 Refrigerator, Washing Machine, Telephone, motorbike

No disabled/infirmed; all have Lichuan 29 8 793 5,250 working HH members; all literate and interested in jobs Total 58 23 1,805 6,644 Source: Consultant.

77. Some of the AP and households may or may not require special assistance during resettlement and land reallocation. However, all of these households need to be considered for special assistance based on their unique circumstances. There are 14 other households with a disabled or infirmed member but there are other adults in the households and income levels are relatively high. These households may also require special assistance at the time of resettlement and land reallocation but they appear to be successfully dealing with their situation.

78. One important finding in the AP household survey is that there are a number of poor households with seemingly able-bodied members quite interested in taking construction and/or operations phase jobs with the railway or associated activities. These households would be able to raise their incomes above the poverty level if they gain employment with CLR or another enterprise.

79. Based on the household survey that identified that 6.8 percent of the households were economically vulnerable, there will be an estimated 400 vulnerable persons losing more than 10 percent of their land that would be eligible for additional income support. A separate budget item has been included to provide supplementary assistance at the rate of CY 1,000 per person.

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80. Based on the above, poverty reflects: (i) lack of opportunity to earn income from wages and business in, for example, some of the less developed areas of the PIA compared to those areas near the large urban center in Chongqing; (ii) lack of resources to establish a business or diversify into other agricultural activities such as forestry, agro-processing and livestock; and (iii) for some households, there are fewer able-bodied workers.

81. Any household that includes a disabled or infirmed member, has elderly, or is headed by women, will be especially vulnerable to any disruptions to income earning activities caused by land acquisition and/or resettlement. Moreover, because these households are often dependent on fewer able-bodied workers, they will generally require additional labor to compensate for and assist them during and after land acquisition and/or resettlement.

82. Women manage family and household chores, are active in feeding and maintaining livestock, and assist with other farming as time permits. Land acquisition may place extra time burdens on them because men will be busy shifting production to new acreage. Resettlement will place extra time burdens on them because they will have to be heavily involved in shifting to a new house. It will be especially important for women to be involved in consultative meetings prior to resettlement because they will likely have a better understanding as to what resources are required to facilitate shifting to a new house. Women’s involvement in resettlement planning will thus provide an essential component in ensuring that the process is smoothly implemented. Local Railway Construction Support Offices and ACWF representatives will hold consultations with women enabling their input to the planning process.

3.3.2 Most Vulnerable Households

83. The most vulnerable households are those households that: (i) are almost entirely dependent upon agricultural income; (ii) have school age or younger children; and/or (iii) have only one adult able to earn an income.

84. Households headed by women and households with a disabled member are both often at substantial disadvantage because these households tend to have fewer able adults who can generate income from multiple sources in the manner of the typical Chinese household.

¾ Households with young children and no father, or with a severely disabled parent, have less ability to generate income than most families ¾ Households having these characteristics will need the most help ¾ Households with no father or with a disabled parent, but who have children who can work at adult jobs and tasks, are much less economically disadvantaged and much less vulnerable 85. Some households with a disabled adult fit this pattern, while others do not. Some households headed by women fit this pattern, while others do not. The key factor seems to be the inability of the household to generate income from wages or small businesses. These households are not clustered together in particular villages, and are found in both less prosperous and more prosperous villages. Their needs will be addressed on a case-by-case basis.

86. With respect to possible sources of additional support for the most vulnerable households, the Poverty Alleviation Offices, ACWF and the RCSOs are aware of the fact that there are vulnerable households that will require special attention, and have indicated that resources will be provided to assist them from local governments.

87. One of the very positive contributions that CLR can provide in terms of employment opportunities in addition to unskilled construction jobs, are low-skilled service jobs ranging from cleaning to cooking to selling food and newspapers at the stations. Even though these vulnerable households may be short of able-bodied labor, they may be able to take advantage of these opportunities. CLRC and local officials will ensure that whenever possible, members of these vulnerable households are provided with employment.

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88. The counties and districts along the alignment have comprehensive poverty alleviation programs as components of their 11th FYPs. Key poverty alleviation activities and targets for Fuling, Fengdu, Shizhu and Lichuan, the districts/counties with the highest incidence of poverty and the lowest incomes, are presented below.

89. Fuling District: (i) ensure that the basic living requirements for the Wubao households are provided through the social security system. The absolute poor (< CY 668) population of 25,415 will have sufficient food and clothing, and the relative poor (CY 668-900) population of 70,880 will raise their living standards. The rural absolute poverty rate will be less than 2.5 percent of the rural population; (ii) the annual rural net income per capita for the 55 poverty villages will be raised to CY 2,300; (iii) build and upgrade 1,646 km of roads, through which, all the villages and towns/townships will be connected with roads, and the roads connecting with more than 60 percent of the poverty villages will meet the standard of Class 4 roads; (iv) provide 50,000 people and 65,000 animals with access to safe and secure drinking water; (v) farmers will have a minimum 0.5 mu per capita and be provided with agricultural inputs to increase yields; (vi) each household will have a minimum of one or two main agricultural activities with cash income exceeding CY 2,000 per year; (vii) more than 61,000 people will receive training for poverty reduction, and about 50,000 surplus workers will receive assistance to locate to jobs away from their villages; (viii) all villages will be connected with telephones; (ix) the population growth rate will be maintained at less than 0.5 percent; (x) the 9-year compulsory education policy will be implemented, and the school ratio for pre-school children will be more than 99.8 percent; and (xi) some poverty households living in the remote mountainous areas will be resettled to flat areas, and it is estimated that about 3,120 people and 1,000 households will be included under this component during the 2006-2010 period.

90. Fengdu County: (i) the average annual growth rate of net income per capita for poverty households will be above 5 percent, and the rural absolute poverty rate will be less than 2 percent; (ii) 30,000 people will be provided access to safe and secure drinking water; (iii) 732.8 km, of new roads will be built, 672.7 km of existing roads will be upgraded to Class 4 roads, and 35 bridges totaling 512 meters will be built; (iv) water storage and conservation facilities will be built, and the irrigation system will be extended to cover 54 percent of the total farmland; (v) continue upgrading the rural power network through which, all rural households will have access to electricity; (vi) strengthen education in the county so that the school ratio for pre-school children will be more than 99.9 percent and the average years of education for adults will be 8.8 years; (vii) continue building the broadcasting and television system in rural areas so that almost all of the villages will be connected through fiber optic cable; (viii) strengthen rural cultural activities and ensure that all villages have cultural activity facilities; (ix) facilitate rural health care development so that 95 percent of villages have clinics; (x) maintain the population growth rate at less than 0.5 percent; (xi) facilitate ecological and environmental development, and increase the forest cover to 38.5 percent of all land; (xii) facilitate industrial development in rural areas, and assist each poverty household to have a minimum of one or two main agricultural activities that will provide stable cash income; (xiii) assist about 120,000 surplus workers to find jobs away from their home village; and xiv) some poverty households living in remote mountainous areas will be resettled to flat areas, and it is estimated that about 2,754 people and 752 households will be included under this component during the 2006-2010 period.

91. Shizhu Country: (i) the absolute poor population of 25,850 will be provided with adequate food and clothing, and the rural absolute poverty rate will be less than 3 percent; (ii) improve rural transportation by building or upgrading 1,239 km of roads, by which, 16 towns/townships and 63 villages will be connected with paved roads and 100 villages will be connected with Class 4 roads, and 24 bridges totaling 338 meters will be built; (iii) provide 36,540 people with access to safe and secure drinking water; (iv) assist about 90,000 surplus workers to locate jobs away from their home villages; (v) provide 224 villages with access to broadcasting and television via fiber optic cable; (vi) establish health clinics in all villages, and the number of beds in all hospitals will be increased to 1.94 beds/thousand people; (vii) strengthen education in the county, with the primary school ratio for pre-school children at 99 percent, increase the upgrading ratio for junior and senior middle school to 95 and 80 percent respectively, and increase the average years of

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education for the adults to 8.8 years; (viii) strengthen rural cultural activities, and provide 70 percent of all villages with a cultural facility; (ix) maintain the population growth rate of less than 0.85 percent; and (x) about 840 households living in remote mountainous areas will be resettled during the 2006-2010 period.

92. Lichuan City: (i) ensure that about 100,000 poor have adequate food and clothing, and help low income people raise their incomes above poverty; (ii) improve rural transportation, through which, 12 towns/townships will be connected with Class 4 roads (1,045 km in length), 43 villages will be connected with rural roads (460 km in length), and build about 15 bridges totaling 245 meters; (iii) provide 105,000 people with access to safe and secure drinking water through the construction of water supply facilities at 410 locations and 4,461 wells; (iv) construct water conservation and storage facilities, improve water irrigation systems for 220,000 mu, and construct irrigation systems for 50,000 mu; (v) establish and upgrade health clinics in all villages, upgrade town/township hospitals; and ensure that the immunization rate is over 97 percent; (vi) upgrade 80,000 m2 of school buildings construct 60,000 m2 of new school buildings, and the primary school ratio for pre-school children will be 100 percent, the upgrading ratio for junior and senior middle school will be 100 and 60 percent, respectively; (vii) facilitate environmentally- friendly energy production so that over 30,000 households will have methane-based generating systems; (viii) more than 300,000 will receive training in practical agricultural technologies; (ix) 228 villages will be provided with access to broadcasting and television through fiber optic cable; and (x) 17,298 people and 4,736 households living in remote mountainous areas will be resettled to flat areas during the 2006-2010 period.

93. Table 3-4 outlines the risks and vulnerability of households in the Project area. As the above discussion of the household surveys indicates, there are no broad generalizations that can fully group or identify the most vulnerable households. Instead, the situations are different from one household to the next. However, there are indicators that show potential vulnerability, and these will be used to provide the basis for assistance and mitigation programs, even if the result is a unique combination of resources (e.g., funds, finance, training, labor, rehabilitation and skills training) allocated to the individual household. This points to a resettlement program that incorporates flexibility and responsiveness into its structure, and requires local officials such as the ACWF and the Poverty Alleviation offices to work proactively with the AP. The actual number of vulnerable households will be determined by the resettlement census and reflected in the Final RP.

94. While the Project has been purposely designed to lessen the impact on settled areas, there will be affected households that will have their livelihoods placed in jeopardy because of relocation. These are primarily poor rural households that will lose their source of income and subsistence. These households will have to receive special attention from resettlement officials as well as local Poverty Alleviation officials and the ACWF. Resources will be made available for skills training, livelihood training, and if the AP decides to establish a small business, access to capital and other support mechanisms. In addition, preferential hiring practices during Project construction will provide an alternative income source. Although the intent of these support programs is very positive, experience suggests that the poor do not always access available resources for a range of reasons. It is thus essential that Project and local officials in conjunction with representatives of affected villages give considerable focus on ensuring that those at risk are receiving the compensation and assistance that they are entitled to and that they are also utilizing available resources to increase their incomes and improve their livelihood. The resettlement budget includes an item for training that can be used to complement government programs as needed. The funds will be used for training and micro-finance, and it totals 1.35 million CY.

95. The PRC has extensive experience in resettlement resulting from railway, highway, and dam/reservoir construction. Nearly all of the local government units (districts, counties, and townships) along the alignment have recently completed major resettlement projects including those related to expressway construction and railways. Officials in all districts know the applicable PRC and provincial laws. Officials have indicated there have been few, if any, problems in replacing housing and other buildings taken for railway or highway projects. The goal

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of insuring that people are at least as well off after the project than they were before is always met in terms of housing and buildings. Similarly, there are few, if any, problems in compensation for standing crops, fruit trees and other “attachments to the land” that belong to individuals and families or to enterprises and private businesses. These payments are regarded as appropriate and fair.

96. To ensure that entitlements and assistance are adequate and fair for the Project, appropriate stakeholder consultations and information disclosures have been taken, and census arrangements, relocation and compensation payments, and monitoring programs will be implemented.

Table 3-4: Risks and Vulnerability of Households

Serious Project Impacts on Households Loss of job in Vulnerability Loss of House Loss of Land >50% Loss of Shop relocated enterprise Rural Poverty Replacement value High dependence Main source of Often contract labor or low income of simple houses is on crop income income; shop may or part-time, which households less than cost of not be registered, are not guaranteed dependent on new house no compensation employment in the farming for business (note: new enterprise; or Urban poverty Higher cost for rent Employer may all household may be too far or Low income or greater distance have to relocate assets including away households from possible home shops will be employment. included in the resettlement and compensation census). Households Unable to construct These people may Unable to construct lacking labor new house; benefit from a new shop; contract 1) Single contract labor is pension scheme labor is more parent more expensive; expensive; time 2) Disabled time required may required may 3) Elderly disrupt work disrupt business Renters of No compensation; No compensation; No compensation; houses, need to find need to find need to find farmland or alternate house to alternate land to alternate space to shops rent rent rent Farmers No resettlement cultivating subsidy; loss of non-registered income source land House owners No or reduced with compensation unregistered buildings Source: Consultant

97. The Consultant’s and SSDI’s surveys provide a set of baseline information for AP. Completion of the final design will provide the additional data for a more detailed analysis of AP and LAR impacts. Railway surveyors expect that only a small portion of the total number of households will lose all their land. As noted above, responses on the amount of land and buildings that will be lost are based on perceived losses because the layout for the alignment was not yet available at the time of the surveys, and do not necessarily reflect the amount of land that will be acquired from a specific household. Most villages will lose very small amounts of land, and affected villages can manage the rehabilitation needs of those that will lose land. In the

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remaining cases, compensation will be provided7. Appropriate planning and monitoring systems will ensure that AP are adequately compensated.

98. Although most households will be able to continue farming through land reallocation in the same village, when households lose their land and must cease farming, major social, economic and cultural changes often result. There will be few such cases, and probably limited to some station areas. The changes include shifts in time allocation from household food production to wage or business activities that could lead to increases in the amount of time women spend on food production if the male becomes a wage earner or business operator. This could be especially pronounced if the male is working away from his home area, and the woman becomes the effective head of the household. This would mean that the structure of the household has changed, and could include divergence in lifestyles if the male is working in an urban area in Guangdong or Shanghai. Resources including training and skills development, preferential hiring practices by contractors along the alignment, and access to capital, will be made available to facilitate the transition from farming to wage employment or business ownership. Importantly, there are currently a limited number of wage-earning or business opportunities in some of the areas along the alignment, which means that even when people prefer non-farming activities, they will likely have to continue farming unless they choose to work away from the PIA. However, with increasing economic growth and rising incomes in the PIA, this situation is improving and will be monitored during Project implementation.

99. As indicated in the discussion on household income sources, many farm families already engage in small businesses. In addition, many members of farm families work as laborers locally and elsewhere in PRC, sending remittances back to those remaining at home. As a result, the transition out of farming may not be as painful or extreme as it is in settings where farming provides an adequate family income.

100. Additionally, in October 1999 PRC adopted a goal of reducing the rural proportion of the population from 73 percent to 50 percent by 2015. Reduction of the agricultural population will serve to increase rural income by raising the amount of cultivated land per capita for the remaining rural population. Some AP indicated that they would like to move to towns and/or be given jobs in township enterprises. The number of AP desiring to be relocated is about 19 percent (34) of those responding to the survey question, and these people will be able to benefit from the urbanization programs.

7 While the perceived losses may not reflect the amount of land that may be acquired, perceptions of potentially affected persons are an indicator of issues such as the types and levels of impacts that will result from the Project. This is part of the consultative process that will be followed up with precise land acquisition numbers resulting from final staking, and detailed in the resettlement census.

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SECTION 4: POLICY FRAMEWORK

4.1 PURPOSE AND OBJECTIVES OF LAND ACQUISITION AND RESETTLEMENT

101. Land acquisition and resettlement are necessary components of the construction of CLR. Upon the completion of the Project, it will facilitate regional economic development along the transport corridor and provide more and better job opportunities to local people. In addition, construction of CLR will provide greater mobility for the people, increase their ability to participate in the economic growth and foster prosperity of PRC’s major urban centers. It will also greatly facilitate east-west linkages and the development of the western region.

102. Compensation and resettlement entitlements and measures should protect the rights of people affected by the Project, guarantee their interests and make their standard of living and income higher than prior to land acquisition and building demolition.

4.2 PROPERTY OWNERSHIP AND STRUCTURE OF PAYMENTS

103. Property to be taken for construction of CLR is of three general ownership types:

¾ Property belonging to or controlled by individuals, or by the family (household) ¾ Property controlled in common through the village or collective group ¾ Property controlled by the local government or state owned enterprises 104. Compensation for loss of property depends upon the structure of ownership and control of property. There are 10 main categories which are discussed below.

4.2.1 Compensation for Affected Village Collectives

105. The village collectively owns the land and has the right to determine the use of the land on which the farmers grow crops. The village and village group collectives contract most of the land to the individual households for cultivation and forestry. The size allocated to each household is based on the number of people in the household and the farmers in the household who will work on the land. According to the PRC Land Administration Law (amended 200), when land is acquired for the purpose of State construction (such as CLR), the compensation should be made to the village collective for use in developing production facilities, or for expenditures which will contribute to the improvement of the villagers’ standard of living. State Council Document No. 28 (August 28, 2004) further clarifies that:

“The provincial governments will formulate allocation methods for compensation within the rural collective organizations based on the rules that the compensation will principally be distributed to the households whose land is acquired.”

106. The Ministry of Land and Resources in Guidelines for Improvement of Land Requisition and Resettlement System (Document No. 238, 3 November 2004), indicates that while the principle is for the farmer to be the primary recipient of the compensation, the funds are to be rationally distributed within the rural collective economic unit and that the distribution method should be prepared in accordance with the Land Administration Law and in consultation with AP. The guidelines also state that if the compensation multiple of up to a maximum 30 times of the Average Annual Output Value (AAOV) is insufficient to ensure that the AP cannot at least maintain their standard of living prior to land acquisition, the provincial authority may increase the compensation multiplier as it deems appropriate.

4.2.2 Individual Farmer Assets Affected by Land Acquisition

107. Compensation for standing crops (including orchards and other “attachments to the land” which belong to the household) will be given to the affected households.

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4.2.3 Rural Households Affected by Housing Demolition

108. Residences to be demolished belong to the individual households, and, therefore, compensation goes directly to the affected family. The families get new housing sites from the village without charge, where they can build their new homes. Provincial and county programs facilitating micro-urbanization will be utilized where appropriate, such as the two villages where new passenger/freight stations will be built. Compensation for moving expenses including income lost due to demolition and relocation is also provided to the affected households. Home shops will be included in the list of household assets calculated for compensation.

4.2.4 Urban Residents Affected by Housing Demolition

109. In the alignment of CLR there are reportedly no urban residents that will be affected by housing demolition. In the event that are cases of urban AP, for this type of housing to be demolished and which belongs to individual families, the family receives housing resettlement payments from the department in charge of urban housing demolition. The compensation amount is based on the cost to provide for an equal amount of housing of equal quality and similar location (i.e. replacement value of house including land price). Compensation for moving expenses including income lost due to demolition and relocation is also provided to the affected households. Home shops are included in the list of household assets calculated for compensation.

110. There are reportedly no informal dwellers affected by the Project. In the event that people without legal title are identified, they will be eligible for compensation based on the value of comparable building and improvements and relocation expenses.

4.2.5 Affected Commercial Buildings/Shops

111. Buildings used for commercial purposes belong to individuals or to the collectives. Household shops are included in the list of household assets that will be compiled during the resettlement census. Resettlement compensation to these people not only considers payment for the building itself, but also the loss expected to be incurred during the transition period and the time of construction of their replacement buildings. This includes lost wages. Compensation for moving expenses will also be provided. Affected workers will be compensated for lost wages and will be provided employment in the new shops or assisted to find similar employment, including training if required.

4.2.6 Affected Factories and Enterprises

112. Factories and enterprises are owned by the State, the collectives or individuals. Compensation is made to the legally established owners of the affected enterprises and they make their own decisions on reconstruction and relocation of their facilities. As with commercial buildings, resettlement not only considers compensation for the building itself, but also the losses sustained during the transition period and the time of construction of their replacement buildings. This includes lost wages. Compensation for moving expenses is also provided. Affected workers will be compensated for lost wages and will be provided employment in the new factory or assisted to find similar employment, including training if required.

4.2.7 Affected Institutions and Units

113. Affected institutions and units (such as township offices, water supply stations, etc.) are buildings which belong to the relevant governmental departments. The appropriate government agency will rebuild them after receipt of appropriate compensation. Affected workers will be compensated for lost wages and will be provided employment in the new institutions or assisted to find similar employment, including training if required.

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4.2.8 Affected Schools

114. Schools, such as primary schools and secondary schools, are public service enterprises. They are to be rebuilt by the local governments after receipt of compensation, and to higher standards. Affected workers will be compensated for lost wages and will be provided employment in the new location. Relocation will be carried out in a manner that minimizes disruption to schooling.

4.2.9 Affected Infrastructure

115. Power supply and telecommunication facilities belong to the State or local government agencies. Affected roads, irrigation canals, and drainage are either owned by the province, prefecture, district, county, township or village collectives. These should be restored by the Project contractor as early as possible and provision should be made for temporary service to avoid disruption, otherwise compensation would be required for related losses. Some facilities may be rebuilt by the owners upon receipt of appropriate compensation. Final payment of the contractor will be made only after the local infrastructure has been adequately restored or compensated. This will be confirmed by local government inspection.

4.2.10 Land Borrowed for Temporary Use

116. The standing crops and loss of land output during the time period of temporary land use are compensated. When the time of use is over, the project owner is required to restore the land to its original condition. Contractors must seek approval for use of land and deposit funds with the Land and Resources Office. When the land has been adequately restored, the deposit will be refunded. Compensations in cash for above ground attachments to the land, such as trees, fruit trees, and standing crops, are all paid to the affected individuals or households.

4.3 APPLICABLE LAND POLICIES, LAWS, AND GUIDELINES

4.3.1 The Legislative and Regulatory Framework

117. For land acquisition, removal, resettlement and compensation, China has established a comprehensive legal framework and policy. Since the enactment of the first PRC Land Administration Law in 1986, it has been modified three times. On August 28, 2004, the Peoples Congress made the latest revision of the policy. With the guidance of national laws and the national policy framework, many levels of local government have published and implemented local regulations and policies accordingly regarding land acquisition, house removal, resettlement and compensation. Chongqing Municipality and Hubei Province have developed local regulations and procedures in conformity with the national legal framework to direct and guide the implementation of land acquisition and resettlement tasks.

118. Land acquisition, housing demolition and resettlement under the proposed Project will be carried out in strict compliance with the following laws, policies and regulations：

¾ The Decision of the State Council on Deepening the Reform and Tightening the Control over Land (State Document No. 28) and laws and regulations on land administration set by the Central Government. The Municipality Government has decided to readjust the compensation rate for resettlement which has been approved by the Standing Committee of Chongqing Government, 2005. ¾ Compensation rates have been determined under the “Land Acquisition and Removal Rates for the Sections within the Industrial Development Zone of the Lichuan” dated 23 August 2006, prepared by the Lichuan City Government, 2006. ¾ Land Administration Law of PRC, August 1998; revised by People’s Congress on August 28, 2004 with an order entitled: ”Decisions on Modification on PRC Land Administration Law”.

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¾ Urban Land and Housing Property Administration Law of PRC, April 1994. ¾ The State Council’s Decision on Further Reform to Strictly Implement Land Administration, State Document No.28 (2004). ¾ Regulations on Implementation Methods for the Land Administration Law of PRC, December 1998. ¾ Basic Farmland Protection Regulations, December 1998. ¾ Directory of Instructions on Facilitating Compensation for Land Acquisition, The Ministry of Land Administration’s Document No.238 (2004). ¾ Chongqing Municipality, Notices on Readjustment of Resettlement Compensation Rates and Issues of Properly Conducting Resettlement, Document No. 67, 2005. ¾ Chongqing Municipality, Regulation on Land Management, adopted 22 March 1999. ¾ Chongqing Municipality, Master Plan for Chongqing Land Utilization, 1996. ¾ Hubei Province, Regulation for Implementing the Master Plan for Hubei Land Utilization, approved 15 January 2002. ¾ ADB Policy on Involuntary Resettlement, 1995. ¾ ADB Policy on Indigenous People’s, 1998 4.3.2 Relevant Provisions of Laws and Regulations of PRC

119. The Land Administration Law of PRC used cultivated land as the bench mark value to establish the compensation amount. Article 47 of the Law specifies the compensation for land acquisition as follows:

¾ For land acquisition, compensate according to the original use of the land acquired. The compensation for cultivated land includes land compensation, subsidy for resettlement (relocation assistance such as moving expenses), compensation for above-ground attachments and standing crops. ¾ Compensation for the cultivated land acquired should be 16 times the AAOV during the last three years prior to acquisition. Subsidy for resettlement for cultivated land acquired is calculated according to the number of agricultural persons to be resettled. The number of agricultural persons to be resettled is calculated by the formula: the amount of acquired cultivated land divided by the amount of cultivated land per capita prior to the land acquisition. Subsidy for resettlement for each agricultural person should be 4 to 6 times the AAOV of the cultivated land acquired during the last three years prior to acquisition. However, the maximum subsidy for land to be acquired will not exceed 15 times the average AAOV of the land acquired during the last three years prior to land acquisition. ¾ For other land acquired, governments at the affected provinces will decide the compensation and resettlement subsidy standards by using the standards for cultivated land as a reference. ¾ Governments themselves at the affected provinces will decide on compensation standards for above-ground attachments and standing crops for land acquired. ¾ The units that acquire suburban vegetable plots have to pay fees for building new vegetable plots according to relevant State regulations. 120. If land compensation and resettlement subsidies paid in accordance with Article 47 are insufficient to maintain the original standard of living of the farmers to be resettled, the resettlement subsidy may be increased upon approval of provincial governments. However, the total amount of compensation plus resettlement subsidy will not exceed 30 times the AAOV of the land acquired during the last three years prior to land acquisition. Under special circumstances,

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The State Council may increase the compensation for cultivated land acquisition and subsidy standard for resettlement according to the socioeconomic development of specific areas.

121. In order to further improve PRC’s land administration, the State Council (SC) enacted “Decision on Further Reform to Strictly Implement Land Administration” in 2004 (Document No. 28), which sets out new requirements on land acquisition and compensation. Article 12 of SC’s Document 28 specifies:

“The compensation method on land acquisition will be enhanced. All county- level governments and above will take any necessary measures to ensure that the living standard of the people whose land to be acquired will not be reduced due to land acquisition. The governments will ensure sufficient and timely payment for compensation for land acquisition, resettlement subsidy, above- ground improvements and standing crops for land acquired. When the compensation for land acquisition and subsidy for resettlement according to the laws and regulations cannot maintain the people’s living standard as well as prior to land acquisition, and it is not sufficient to ensure the social condition and welfare for the people who lose land, the provincial governments will increase the compensation standards. When the compensation and subsidy taken together and meeting the maximum level under the laws, still cannot ensure the people’s original living standard, the local governments will make further payments to the people from the proceeds of the land acquisition collected by the local government. The provincial governments will develop and publish the unified annual output standard by cities/counties or integrated land price by areas for land acquisition, and the compensation to land will be based on the principle of ‘the same land, the same price”. 122. The SC’s Document 28 specifies the process of resettlement and land acquisition for farmers and addresses appropriate resettlement for farmers who lose land. In addition, it specifies that the land acquisition plan will include consultation with the affected people to insure that the benefits are provided to these people. Article 13 specifies the following:

“Those farmers whose land will be acquired will be appropriately resettled. The local county and above governments will develop specific methods to ensure the farmers’ future living standards after their land is acquired. In rural areas, when the farmer’s land is acquired, the local government will reallocate necessary farmland for those people within its jurisdiction, or arrange suitable jobs for them. Those farmers who lose land and do not have basic production means to support their living will be resettled to other places.” 123. In addition, SC Document 28 requires that labor and social organizations, together with related organizations, will provide job training as soon as possible for farmers whose land will be acquired. It also directs requirements for the social security system. Article 14 specifies the following:

“During land acquisition, the local government will protect the farmers’ entitlement of collective land property and contractual land operation. Prior to approval of land acquisition, it will notify the farmers of the purpose of land acquisition, location, compensation standard, and resettlement approaches. The survey of the land to be acquired will be confirmed with the rural collective organizations and the households. When it is necessary, the national land administration organizations will hold public consultation meetings pursuant to related laws and regulations. Materials relating to the farmers’ knowledge of land acquisition and confirmation of it will be required for the documentation to be submitted for approval. The arbitration mechanism will be established as soon as possible for disputes on compensation and resettlement, to ensure the entitlements of both farmers and land users. All issues approved regarding to land acquisition will be published, unless there are special circumstances.”

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124. With respect to distribution of compensation to the AP, the PRC Government has developed specific rules to ensure the farmers’ entitlements. Article 15 in the SC Document 28 specifies that:

“The monitoring of the process of land acquisition will be strengthened. If compensation for resettlement has not been implemented, the new user [project owner] will not use the land. The provincial governments will formulate allocation methods for compensation within the rural collective organizations based on the rule that the compensation will principally be distributed to the households whose land is acquired. The rural collective organizations will publicize to its members the revenue and expenses from resettlement as well as its distribution, in such a way so as to allow supervision by the public. The agricultural and civil administration organizations will improve their supervision of the distribution and use of compensation funds within the collective organizations.” 125. Pursuant to SC Document 28, the Ministry of Land Administration has developed Instructions for Facilitating Compensation for Land Acquisition to further elaborate on the Government’s implementation rules and procedures. The provinces along the alignment also developed land administration methods and detailed implementation rules for land acquisition, compensation and resettlement (see Annex 3). The provincial implementation methods and compensation standards follow the same principles as those set by the State Government.

126. The scope of the SC’s Administrative Regulations for Urban Housing Demolition and Relocation8 includes the following:

¾ The remover will compensate the removed. ¾ The remover will sign an agreement with the removed specifying the terms of compensation and resettlement. ¾ Removal compensation is based on swapping of property with identical features and compensation by evaluation. ¾ The remover will be responsible for resettlement of the users of the removed buildings, or provide sufficient funds so that the removed can satisfactorily relocate. ¾ The users of the removed buildings required to move due to the building demolition will be given a moving subsidy by the remover. ¾ During the stipulated transition period, the users of the removed buildings will be given temporary subsidy if they live by themselves. During the stipulated transition period, the users of the removed buildings will not be given temporary subsidy if the remover provides the transition house. 127. More recently on 5 September 2006, the State Council Decree 31 promulgated revised regulations on land use and compensation that included the following:

¾ The onus on scrutiny of land use lies with the provincial government, which will submit cases to the State Council for approval on an annual basis, instead of case by case now. Local leaders will be penalized if they fail to stop or investigate illegal land sale cases. Officials who violate land supply rules will face disciplinary action and prosecution.

8 In urban areas there are special regulations regarding house removal developed by the Central Government and the local governments. As the highest policy making body, the State Council issued Administrative Regulations for Urban Housing Demolition and Relocation, which specifies the rules for housing demolition in urban areas. Chongqing and Hubei have developed implementation regulations separately according to the State Council’s policy. All prefectures, counties, cities, and districts are following the provincial regulations on housing demolition and relocation at urban areas.

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¾ To stop local governments from giving land to investors free or at throwaway prices, the central government will set a minimum price, which will vary according to what it is used for. Officials who sell land at prices lower than the minimum will be prosecuted. ¾ There will be a ban of leasing land from farmers for construction purposes. ¾ To protect the interest of farmers, revenues from farmland sales must first be used to pay for their resettlement and compensation for crops. If the sale price of any piece of land is not enough to cover the cost of resettling farmers, local governments must pay from their land sale revenues. Local governments should ensure that farmers who have lost their land are properly trained for new jobs and provided with means to make a livelihood. ¾ Land sale revenues must be incorporated into local budgets so that they can be scrutinized by higher authorities – a major departure from the current practice where local governments have total freedom to spend the money as extra-budget revenue. 128. In conformity with the above laws, regulations and policies, MOR and Chongqing, which are partners in the envisaged joint venture for CLR as well as Hubei Province will implement land acquisition, resettlement, and compensation through the local governments.

4.3.3 ADB Policy on Involuntary Resettlement

129. In accordance with ADB’s Policy on Involuntary Resettlement, people unavoidably displaced should be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence of the Project. People affected should be fully informed and consulted, and existing social and cultural institutions should be supported.

130. ADB guidelines for involuntary resettlement include the following:

¾ Involuntary resettlement should be avoided where feasible. ¾ Where population displacement is unavoidable, it should be minimized by exploring all viable project options. ¾ People unavoidably displaced should be compensated and assisted, so that their economic and social future will be generally as favorable as it would have been in the absence of the project. ¾ People affected should be informed fully and consulted on resettlement and compensation options. ¾ Existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible, and resettlers should be integrated economically and socially into host communities. ¾ The absence of a formal legal title to land by some affected groups should not be a bar to compensation. ¾ Particular attention should be paid to households headed by women and other vulnerable groups, and appropriate assistance provided to help them improve their status. ¾ Involuntary resettlement should be conceived and executed as an integral part of the project. ¾ The full costs of resettlement and compensation should be included in the evaluation of project costs and benefits, project budget, and project financing.

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4.3.4 ADB’s Policy on Indigenous Peoples

131. As stated in The Bank’s Policy on Indigenous Peoples9: for development interventions it supports or assists, the Borrower must ensure that affected populations and persons are at least as well-off as they would have been in the absence of the intervention, or that adequate and appropriate compensation be provided. The policy ensures that ADB interventions affecting indigenous peoples are: (i) consistent with the needs and aspirations of affected indigenous peoples; (ii) compatible in substance and structure with affected indigenous peoples’ culture and social and economic institutions; (iii) conceived, planned, and implemented with the informed consultation and participation of affected communities; (iv) equitable in terms of development efforts and impact; and (v) not imposing the negative effects of development on indigenous peoples without culturally appropriate and acceptable compensation.

132. A review of the ADB-funded Yichang-Wanzhou Railway Project documents provided a discussion on the integration of Tujia and Miao minorities with the Han majority and indicated that Tujia and Miao would not be disadvantaged by the YWR Project including in the Lichuan area, where CLR and YWR connect. The conclusion in the YWR report was that special measures would be taken for project affected minority peoples to ensure they will benefit from the Project in a culturally appropriate manner..

133. As noted in Section 3 and the discussion on vulnerable households, there are lower income levels in the eastern counties and districts of the alignment where most of the ethnic minority populations live, and this is due primarily to the lower levels of economic development. The CLR Project will directly address this lack of economic development by providing more economic means of transport. The officials (14 in Shizhu and Lichuan) and villagers (302 in Shizhu and 152 in Lichuan) in these areas all expressed support for the CLR Project, and do not believe that they will be disadvantaged by its development.

4.3.5 Differences between PRC and ADB Policy and Solutions

134. Replacement Value: local regulations have set minimum standards for land compensation which may be adequate in most cases but may not always reflect replacement value. Solution: For this Project, higher standards will be adopted by the local governments in order to maintain consistency with current replacement values. For vulnerable households, preference will be given to replace land for land rather than cash compensation, so they are not adversely affected. For this purpose, reserve (non-contracted) land is available in most villages and can meet the needs of vulnerable households. At the village level, the amount of compensation paid to village collectives and the investment of these funds will be closely monitored to ensure full replacement of losses. Where land is not available, special measures for livelihood restoration will be taken to ensure that APs are not adversely affected. In towns, land for land is not always possible and may not reflect the wishes of APs. In such cases, cash compensation may be provided but the affected household should have a clearly defined plan for investing the funds to restore income potential. These households will be closely monitored.

135. Consultation and Disclosure: the PRC Land Law has provision for consultation but the regulations and procedures are not intensive until the Project is approved, but ADB requires consultation and disclosure during the planning stage. Solution: MOR provided Resettlement information booklets (RIBs) to the local governments prior to appraisal to distribute to the affected villages, and will fully disclose the approved RP to all relevant local government offices. A second round of disclosure will be necessary to inform AP of specific compensation amounts and eligible assistance and training programs. Also, once the final alignment is approved, all AP will be officially notified accordingly.

136. Grievance Procedures: the PRC Land Law has provision for grievance process but experience has shown that the use and effectiveness of the grievance system is incomplete.

9 ADB, April 1998, pp. 12-13.

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Solution: Local governments will ensure that AP have opportunity to express grievances at appropriate levels and will instruct local officials to (i) distribute information on entitlements and grievance procedures to all APs and (ii) find solutions and implement measures quickly. The process will be documented and reviewed by an external monitor.

137. Vulnerable Households: policies are not clear regarding additional support for vulnerable households such as the elderly and chronically ill. Solution: villages typically provide additional support and RCSOs and local Resettlement Teams will ensure that adequate support is provided to vulnerable households. The RP will include budgetary support for vulnerable APs which will be disbursed based on a census APs and their actual impacts and needs.

138. Non-legal Properties: the absence of a formal legal title to land should not be a bar to compensation. Solution: If any AP is identified as lacking formal legal title, they will be eligible for compensation based on the value of comparable building and improvements and relocation expenses.

4.4 COMPENSATION STANDARDS AND RATES

139. The standards and rates of compensation for affected assets are thus determined by the legal framework outlined in Section 4.3, above, and are payable to affected entities as described in Section 4.2. While many of the specific rates for compensation are yet to be determined for the Project, the following section outlines the standards and examples of rates drawn from recent experience in the Project area.

4.4.1 Permanent Land Acquisition

140. Land compensation is calculated by using the agricultural output values (AAOVs) in the last three years prior to land acquisition with specified multiplication factors ranging from 6 to 10 times. For the resettlement subsidy, the multiplication factors range from 4-6 times the AAOV, although together with the land compensation, can range up to 30 times, and if this is insufficient for the AP to maintain their standard of living then the provincial authority can increase the multiplier as directed in State Council Document No. 28. For those villages with relatively less cultivated land per capita, the compensation multiplication factors are higher since more rural people are supported on each mu of cultivated land. Current regulations in the Project provinces define multiplier ranges which are very low (less than 10 times). For this Project, although multipliers will vary between counties, the combined land compensation and resettlement subsidy shall not fall below 16 times in accordance with State Council Document No. 28.

141. AAOVs are calculated by use of market prices (i.e. the average market price for the current year) multiplied by all agricultural outputs of the last three years prior to land acquisition. When calculating output values, values of by-products such as straw from grain products are also included. Table 4-1 shows AAOVs for lands types based on SSDI estimates from field investigations and discussions with local governments. The values represent averages for the last three years.

142. Compensation standards will be determined according to the prefecture/city and provincial regulations to reflect local land condition and actual productivity. All compensation rates will be approved at the provincial level. In some areas, Project compensation standards have already been drafted and submitted to the province for approval. Upon Project approval from the MOR similar rates will be determined by other local governments, and approvals processes at the province level activated. As mentioned above, compensation rates will reflect multipliers of at least 16 times for both land compensation and resettlement subsidies.

143. Until Project compensation rates are determined, for planning and budgeting purposes, compensation rates used recently in each Project county have been utilized as shown in Annex 1. Final compensation rates will be included in the updated RP.

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Table 4-1: Calculation of AAOV of crops for CLR Land Planted Output Market price Output value Total output type crop (kg/Mu) (Yuan/kg) (Yuan/Mu) value (Yuan)

Rice 600 1.5 900 Irrigated 1,080 land Byproduct 180

Wheat 250 1.5 375 Normal Corn 300 1.2 360 882 dry land Byproduct 147

General orchard 1,500 1.7 2,550 2,800 Source: SSDI, information provided by local governments

144. Land compensation rates are shown in Annex 1 for the counties and districts along the alignment. CLR passes through some areas that are well-irrigated. It also passes through areas that are mountainous without irrigation where dry land is farmed, and some of these are extensively terraced. There are a range of grains (such as rice, wheat and corn), yams, sweet potatoes, potatoes, beans, vegetables, oil crops, medicinal plants, and fruits such as watermelon. Orchard fruits include oranges.

4.4.2 Temporary Land Acquisition

145. During railway construction, contractors will temporarily occupy land for access roads, construction camps, material storage, storage of tunneling waste, and engineering activities. The Project will make every effort to limit temporary land use to periods of 2 years. Compensation for temporary land will be provided to the landowner or user. If temporarily borrowed land is cultivated land, compensation will be provided year-by-year according to the loss of AAOV. If the borrowed land is wasteland, a lump-sum payment will be made to the village collective. When construction activity is completed, the land will be returned to the owner in its original condition. Average rates have been provided by the counties and used for budgeting purposes; however actual rates will vary with land type.

4.4.3 Young Crops

146. Compensation is equal to the output value for one crop season, which has been assumed as 6 months. If the crops have been harvested and not re-planted prior to land acquisition, compensation for standing crops is not paid. Average rates have been provided by the counties and used for budgeting purposes, however actual rates will vary with land and crop type.

4.4.4 Economic Trees

147. In addition to the above, each county/district will produce has its own detailed compensation standard for fruit trees, tree farms and woodlands.

148. Review of example rates for some of the affected cities evidenced low rates for economic trees, however the compensation rates for orchards and woodlands reflect the value of production of the land, and thus adequate compensation is reflected in the relevant land rates, and replanting/replacement costs reflected in the compensation rate for the individual tree.

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4.4.5 Compensation Rates for Building Demolition

According to the Land Administration Law and housing demolition policies, the compensation for structures and attachments to the land will be paid directly to the AP who owns these assets. Compensation will be fixed at the replacement cost for rebuilding the demolished houses. Any legal transaction and registration fees will not be charged for rural or urban house relocation, or will be compensated for the fees. APs will also be entitled to salvage any materials from their house before demolition, at no cost.

Rural Housing

149. In rural areas, several options for house relocation are possible. Local governments may allocate housing plots that are prepared (leveled and ready for connection to services if applicable) for house construction at no cost to affected people and the new house will be constructed by the AP themselves. Historically this has been the most common and preferred option, however with increasing pressure on land resources, and moves towards urbanization, clustered or multistory housing is commonly pursued by local governments. In this case, the location and design of housing will be determined in consultation with APs and reflecting their current conditions, so that equivalent or improved housing can be provided within the properly determined compensation limits. In many instances this can mean significant improvement in living conditions (housing with water, sanitation, heating, and of higher building standards) but with smaller house plots.

150. For rural housing, compensation rates are at replacement costs, as houses will be reconstructed. Final compensation rates for affected housing and other structures will be determined by the cities, and approved by the province/municipality, and included in the updated RP.

Urban Housing

151. In urban areas, the principles of property right swap or compensation at replacement value or a combination of both will be implemented. The area for swapping of property rights of houses will be based on the gross area of the house demolished. APs will be given the opportunity to utilize the swap arrangement in order to relocate to another part of the urban area if the AP chooses. The area for swap of property rights of houses will be based on the gross area of the house to be demolished. The amount of compensation will be based on replacement value of the house to be demolished.

152. Compensation criteria for house demolition for urban residents is higher than that of rural residents because of i) higher market prices, which include land value, and ii) better quality housing. For urban housing, replacement properties will be swapped or purchased, and so where purchase of replacement housing is made, compensation will be made at market value, as determined by a professional housing appraiser. Urban real estate markets offer a diversity of housing stock and will provide ample opportunities for APs to replace their housing. Should any APs be unable to replace their housing (particularly if replacement low-income housing is not available), and local government can not provide them with appropriate replacement housing, provincial authorities will increase the compensation rates so that APs are not made worse off, and are able to replace their housing.

4.4.6 Resettlement Allowances

153. All compensations will be disbursed 3-5 months before acquisition of land and housing, to allow time for land and housing restoration. Standards will be determined to cover moving costs and temporary housing/transition fees for relocating APs. Where APs relocate within the transition period they will be entitled to a prize, or reward. Those who can not will be entitled to a transition allowances for each month they require alternate accommodation, up to 6 months. All APs will be entitled to a moving allowance. Entitlements are based variably on a per person, per household,

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area of floorspace, or a percentage of total household compensation. The allowances will include CY 500 per person for Prize for Relocation, CY 150 per person per month for Subsidies for Transition, and CY 5,000 per household for Subsidies for Relocation.

4.4.7 Compensation for Affected Schools and Government Buildings

154. Compensation rates or replacement cost of such institutional buildings will be determined and payable to unit owner or administrator. Compensation will be provided for structures and a transition fee. Rates will be determined at replacement cost.

4.4.8 Compensation for Affected Enterprises

155. Compensation of affected industry and commercial enterprises is based on the allocation of the price of, buildings, equipment and other attachments. Compensation includes removal cost, income losses for the period when production is halted or reduced, and the market value of the demolition. It is paid to enterprises by the local government through the local resettlement office.. These rates will vary significantly between types of enterprises (particularly industrial or retail in nature), and will be finalized through negotiation.

4.4.9 Compensation for Affected Infrastructure

156. Some infrastructure will be repaired by the railway construction units, for others, compensation will be paid for relocation and/or reconstructed by the asset owners or designated specialist agencies. Compensation costs based on these replacement costs will be determined.

4.5 ELIGIBILITY POLICY AND ENTITLEMENTS MATRIX

157. Table 4-1 presents the eligibility policy and entitlement matrix for all categories of loss, including principles of compensation.

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Table 4-1: Entitlement Matrix for Land Compensation Entitled Type of Application person/ Compensation policy Compensation Entitlement Implementation issues loss group

Permanent Arable land a) Land- • Land compensation and • Full compensation for land-owning groups and land loss • Village meetings to be held to decide the allocation of funds, whether loss of land. located in the owning resettlement subsidies. households, the share between land owning group and there is land redistribution, and how to utilize collective funds for right-of-way villages and • Replacement land and/or cash households will be determined by villagers’ meeting. investment in income generating activities such as improved of railway and groups. payments and/or income cultivation techniques/ irrigation/ small business development/ associated restoration measures sufficient to • If no replacement land is allocated to the AP, at a training. facilities. b) Farmers ensure. Maintenance of existing minimum, all of the resettlement subsidy will be paid to who use the economic and social conditions. the AP in cash. • County and township level authorities to approve and monitor village land. level proposals and to facilitate training programs.

Forest land Local forest • Cash compensation to forest • Compensation will be paid by the provincial/municipality forest within ROW bureau / bureau according to standards and • The areas operated by collectives or contracted out will bureaus, which are responsible for reforestation.. Forestry regulation of provincial by-laws be appropriately reimbursed for their losses. Farm/village • Cash compensation to collectives or farmers.

Non- Land-owning • Cash compensation. • All affected villagers’ groups • Compensation based on provincial by-laws cultivated groups. land within ROW.

Temporary Arable land Farmers who • Who lose crops will receive full • Cash compensation based on AAOV for each year land is • Village Committee/farm owners must be notified in advance and paid loss of land. adjacent to use the land. compensation according to not available, plus reinstatement to original or better accordingly. The land administration offices must approve sites, ROW for compensation standard. condition. duration, compensation payments and restoration after use. construction • Contractors must provide a deposit for land restoration costs. purposes.

Wasteland Villages who • Lump sum cash compensation • Compensation paid to village collective. adjacent to own the land based on wasteland, plus ROW and reinstatement to pre-construction other borrow condition. and disposal sites.

Crops Permanent All owners • Crops losses will be compensated • Full payment direct pay to the crop and tree owners losses and land loss and who lose at a rate equal to the market value Tree losses. temporary standing of the harvested crops. use. crops and • Trees will be compensated based trees on project standards.

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Entitled Type of Application person/ Compensation policy Compensation Entitlement Implementation issues loss group

Loss of Rural house Households • Cash compensation at replacement • Direct compensation to affected households or owners. • Sub-villages and the AP to decide on location of new residential plots residential demolition. and rates for all types of houses. The village will assign a new house plot to affected in accordance with regulations. Contractors will provide fill and level housing and collectives • Allocation of house plot or cash households. the sites for house construction and make connections to existing attachments. a) Collective who lose compensation for house plot • Moving and transition allowances will be provided. public utilities. losses houses and purchase • Temporary housing allowances where required. • Households may salvage materials and use in the construction of villages, other plots. • Transition allowances – allowance their houses. units. . for transportation and temporary • Depreciation will not be factored into the replacement value. b) Private housing based on a pre-determined • Households moving to nearby towns would receive urban losses rate and as required. registrations and privileges for housing, schooling and other social Owner of the • Poverty households will receive at services. building or least the minimum standard • Houses will not be demolished until the AP has acquired a house plot houses. housing and assistance with that is acceptable. construction and moving • The need for temporary housing will be minimized and rates will be increased if the period exceeds 3 months.

Urban house Households • Cash compensation or exchange • Cash compensation paid to owner; or • Housing will be provided or reconstructed in accordance with urban demolition, if and housing, based on urban housing • provision of exchange housing, plus planning regulations. any. collectives. market appraisal. • moving and transition allowances.

Loss of Establishmen Schools if • Cash compensation for land or • Full compensation based on compensation standards. • Assistance in finding new site if relocation of establishment is institutional t sited in or any, and any replacement site provided. unavoidable. buildings. affected by other public • Cash compensation for buildings. • New school must be ready prior to demolition, if any affected. ROW. buildings. • Construction of new school by EA or by local government in consultation with beneficiary groups.

Business State or Affected • Compensation for lost assets will • Compensation for structures is based on those set by • The business losses allowance will be based on the total post-tax losses. Collective enterprises be negotiated and paid to the counties, but subject to appraisal and negotiation. profit during the six months prior to relocation as declared in the tax enterprises. and workers- owner, along with business losses, • Business/salary losses will be paid on a monthly basis for receipts. (permanent moving and transition allowances. up to 6 months after relocation. and contract Local government will assist to find • Salaries for workers will be paid for up to 6 months, or in • Local government will assist enterprises with the relocation and will staff). a new site, if required. accordance with contracts. ensure workers are re-employed. Any laid off workers will be given • Compensation for lost wages will priority for training, job assignments and/or income subsidies. be provided directly to workers.

Small private Owners and • Cash compensation for relocation • Compensation for structures is based on those set by • Informal shops will be treated the same as registered shops. They will shops. workers – of shops (materials, moving, counties. be assisted by local government to set up in a better location. Legal and damage to goods). informal. • Assistance to identify new site and • Compensation for loss of profit and wages paid for up to 3 get a business license. months. • Provision of a similar or better site at no extra cost.

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Entitled Type of Application person/ Compensation policy Compensation Entitlement Implementation issues loss group

Vulnerable Households/ Those who • Special assistance will be provided • Construction contracts specify hiring preferences. • Relevant government sectors provide guidance and supervision on groups. persons live below the by local government (e.g., hiring • CLR to set aside low and unskilled operations jobs. buying insurance where it is feasible. seriously poverty line, preference for CLR construction • Training programs. • Each community establishes a “vulnerable group assistance team” affected by landless, and operations jobs, skills and • Access to grants and loans to start businesses. headed by township and village leaders. The team will collect and the project. aged, women, livelihood management training, • House site selection preferences. feed back the needs of vulnerable groups and provide assistance in a children, grants/loans) for income timely manner. • Assistance with relocation, construction. minority, long restoration, either to remain in • Support and monitoring by Poverty Alleviation Offices, ACWF, • Preference to obtain new farmland. time sickness farming or to start a sideline RCSOs. with heavy business • Utilize benefits from provincial and county village burden for • Provision of “free” labor to assist development programs, including improved house children’s with relocation, house construction, standards. education and land reclamation. • The RP includes a budget for these measures. fees, etc. • Refer to Section 6.6.

Households Seriously Seriously • Special assistance will be provided • If the AP prefers, an equal amount and quality of • These household will be identified during DMS and closely monitored with income affected affected by local government (e.g., hiring replacement land will be provided, either from reserve until sustainable restoration is achieved restoration households/ households or preference for CLR construction land or voluntary land adjustment; • Funds and other special measures will be allocated from the hardships. persons households and operations jobs, skills and • if the AP prefers to start a sideline business, local contingency funds (see Table 9.2). directly with livelihood management training, officials will provide advice and support to identify affected by inadequate grants/loans) for income feasible activities and invest the compensation wisely; the Project capacity for restoration, either to remain in • in special circumstances, the local government or self- farming or to start a sideline village collective will assist to arrange micro-credit rehabilitation business. through the Poverty Reduction Office and/or the ACWF; to be • Provision of “free” labor to assist • Two household members will receive skills training determined with relocation, house construction, (farm or non-farm), of which at least one person must during DMS. and land reclamation. be female. • Refer to Section 6.6.

Ethnic Affected Ethnic • Ethnic minority households will • This will include priority hiring measures. • RCSOs and local governments will ensure that any special measures Minority Ethnic Minority receive the same compensation, necessary are provided as needed. Households Minority Households benefits and opportunities as all Households groups.

Seriously Seriously Seriously • Seriously affected villages will be • Villages losing 10% of their arable land will receive • RCSOs, Land Administration Bureaus and local governments will Affected Affected Affected provided either with additional land special compensation to ensure that incomes are fully ensure that any special measures necessary are provided as Villages Villages Villages or resources necessary to restore restored. needed. incomes. • Priority hiring of APs from seriously affected villages. See Section 6.5.

Gender Women Women • Women will be included in priority • This will include priority hiring measures. • ACWF, RCSOs and local governments will ensure that any special Enhanceme hiring and the receipt of other measures necessary are provided as needed. nt Measures benefits and opportunities provided under the Project. Source: Consultant.

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SECTION 5: RELOCATION AND REHABILITATION MEASURES

5.1 LAND ACQUISITION

158. The Land Administration Law of the PRC stipulates that the compensation for cultivated land consists of four parts, compensation for land itself, resettlement subsidy for people’s loss of livelihood, compensation for above ground attachments, and compensation for standing crops.

159. Compensations for affected lands, as discussed in Section 4 are intended to fund the restoration of income and land uses associated with them. For productive lands, the land compensation cost and resettlements subsidy is disbursed to the affected village collective for the purposes of restoring the livelihoods and lifestyles of those who have been affected by land loss.

160. CLR passes through some areas that are well-irrigated. It also passes through areas that are mountainous without irrigation where dry land is farmed, and some of these are extensively terraced. There are a range of grains (such as wheat, rice, and corn), yams (sweet potatoes), potatoes, beans, vegetables, oil crops, medicinal plants, and fruits such as watermelon. Orchard fruits include oranges.

161. When construction activity is completed, the land will be returned to the owner in original or better condition. The Contractor is responsible for land restoration. Land will be selected with the approval of the local Land and Resources Office in order to minimize the use of good farmland. Contractors will provide a deposit which will be returned when the land is adequately restored.

162. Compensation for young crops is paid to account for lost harvests. Such compensation will be due where i) crops are in ground at the time of compensation and can not be harvested before permanent land acquisition, and ii) land used for crops is acquired temporarily (in this case compensation will be payable for each harvest cycle lost). If the crops have been harvested and not re-planted prior to land acquisition, compensation for standing crops is not paid.

5.2 BUILDING DEMOLITION AND REALLOCATION

5.2.1 Principles of Reallocation for New Housing

163. The basis for all planned relocation of buildings, including housing, in the CLR Project is “nearby rebuild.”

164. Where replacement land plots for reconstruction of affected housing will be allocated by the local village, these will be provided leveled and ready for construction of housing, at least 5 months before demolition. The plot will be provided free of charge, and APs will be exempt from any applicable land or building taxes or fees.

165. The location for the land of new house plot shall be determined through negotiation between the village collective and the AP household to be relocated, with the direction and support of higher levels of government (particularly the County RCSOs). Frequently farm households prefer to rebuild in locations with greater access (i.e. along roads and highways). The village will make efforts to provide alternative sites such as these, with the AP able to select from alternative options. However, the location of such sites will avoid farmland, and be integral to overall village planning.

166. The identification of new housing sites, whether clustered or scattered will be undertaken as a component of the village planning, soon after the inventory of losses. In this way, through consultative planning, and then through publication of the plans, all APs and other villagers will be aware and have input to the village restoration plans.

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167. After the approval of village restoration plans, and in advance of agreements being executed, house site preparations will commence in order that sites will be ready for construction at the time of compensation.

168. The resettlement schedule shall allow a minimum 3-5 months for after compensation payments for rebuilding of rural housing (including centralized apartment building) and purchase or allocation of urban replacement housing implemented by the farm household on its own.

169. All compensation fees for the original house shall be paid directly to the household before resettlement by the County RSCO.

170. If APs housing reconstruction is within the original village, an allowance to cover moving costs shall still be paid to them, separately listed or included in other items for compensation. For those choosing to relocate outside the village, additional allowances will be determined on a case-by-case basis in consultation with the AP.

171. When the farm household constructs replacement housing, the extra expense for area extension or improvement of quality shall be paid by the AP. The farm household shall determine whether to extend the area or improve the quality according to their financial capacity.

172. During the relocation process, the affected household will be under the care of the village committee, the town government and the RCSO of the county. Active assistance will be offered by the governments at all levels in the event that difficulties are encountered.

173. Households headed by women will receive special assistance. Resources (funds and labor) and other special measures such as preferential housing sites as necessary will be made available to ensure that women-headed households are satisfactorily and appropriately re-housed.

174. Village councils, township governments, and RCSOs will pay particular attention and provide special assistance to households in poverty, the disabled, and the “five guarantees” families when they are relocated. If they are unable to restore their housing themselves, governments at all levels will get them removed and resettled. Two measures will be applied: To help them build new residences, or to purchase housing of the same floor space and quality in the same village. A minimum housing standard will be established on a case-by case basis, and additional funds made available through new central government initiatives supporting rural poor as well as from existing poverty alleviation programs as outlined for the counties in Section 3. The minimum housing standard will be based on the principle of a minimum housing area of 20 m2 per person and calculated at the rate of CY 250 per m2. With an average household size of 3.1 persons, the minimum standard would be CY 15,500. When house compensation falls below this level, additional funds will be allocated to raise the APs’ compensation to the minimum standard.

5.2.2 Methods of Resettlement

175. All households will receive allowances for moving, lost time and related losses or costs. If affected households increase floor space or improve the quality of their new residences, they will pay for the incremental costs themselves. Such an increase or improvement is at their own option, based on their own financial resources.

Rural Households

176. The affected households will be compensated for the loss of their house. House plots are calculated separately and compensation is paid to the village collective which then determines in consultation with AP the method for disbursement.

177. Restoration of housing and other buildings for the CLR will aim to be nearby, in most cases in the same village or township as the affected structure.

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178. Farm households are generally settled in a scattered way, in freestanding homes. Formerly, when resettled they would usually build their own new houses by themselves. As the compensation paid for houses includes both the cost of labor and materials, households choosing to build their own houses were free to (i) better their house by increasing its size and amenities; or (ii) build a similar house and use the additional compensation for other purposes. The locations of the new houses were chosen through consultation between the villagers and the village or group. The village assigned the new house sites to the AP and did not charge them for the land. This method of resettlement is increasing rare as pressure on rural land increases. Resettlement is more commonly of a concentrated type, in townhouse or apartment style buildings.

179. Resettlement of rural people requiring relocation outside the village is concentrated around small township centers. This is likely to happen since, as noted in Section 3, village relocation and micro-urbanization schemes in conformance with overall PRC policy is being implemented throughout the Project area, and growth of township and county centers is being actively encouraged. Additionally, many of the new stations are located in near-urban areas and anticipate amalgamation into nearby urban areas.

180. As a result, housing relocation is increasingly likely to take the form of medium to high density housing in line with local development plans. In this way resettlement is integrated with township planning and development, and the construction of streets and storefronts. This scenario provides several options for APs:

¾ Local government is responsible for constructing streets and infrastructure, while the AP build the new housing in accordance with a unified plan. ¾ AP accept housing of the same amount and quality built for them. ¾ AP receive cash compensation instead of housing, if they so wish in order to relocate elsewhere. 181. When a Chinese farmer needs to build a new house on the land owned by his village, he has to file an application. And this application has to be approved by the villagers through the villagers’ meeting and will be reviewed and examined by the village committee and the township government before being submitted to the county government for final approval. This type of land allocation for building new houses is free of charge. Associated documentation and registration fees for APs will also be waived, or the AP will be compensated for these fees.

182. Reconstruction of a rural residence takes 3 to 5 months. Affected households will typically build their houses themselves with specialized work contracted to local tradespersons. They usually salvage construction materials from their old house with no deduction in compensation.

Urban Households

183. For urban residents in marketable real estate, the first option will be for compensation at replacement cost, that is, the compensation shall be made as per the current market price of the property, so that a new property of equal quality and location can be purchased in the real estate market. APs shall also receive compensation allowances for removal. Allowances include for Prize for Relocation (CY 500 per person), Subsidies for Transition (CY 150 per person per month), and Subsidies for Relocation (CY 5,000 per household).

184. The second case for urban residential housing is for those people who have purchased their urban plot and built their own housing. This scenario is likely to be rare, however, if such AP are identified, they shall be entitled to the allocation of a plot for house construction of the same area (additionally of better location). They shall also be paid compensation fee according to their house type and an allowance for removal, for the construction of new house on their own.

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5.2.3 Compensation and Transition Methods

185. Although it is preferred that housing is not demolished before a new structure is ready for occupancy, many AP of other projects have typically chosen to build their own new house. Since the materials from the demolished house will be used in the construction of some new houses, the new house is often not built until the old house is demolished. This means that temporary accommodation during the transition period of 3-5 months will be required, and AP will receive compensation for this temporary displacement period. Rates for temporary displacement allowances are CY 150 per person per month. Commonly, APs live in the home of a relative or friend during this period, or construct a tent at the new site where they reside until the new home is habitable. AP who move to their new homes in less time than the transition period will be able to keep the payment as an additional bonus for their own use.

186. All compensations will be paid in full (often in two installments) to the households to be resettled before the dismantling of their original houses. All the attachments to the house, such as enclosures, toilets, pigsties, courtyard wall, water wells, electric wire, fruit trees, other trees and plants belonging to the household will also be compensated and paid at the same time.

187. Special attention will be given to the poverty households and vulnerable families such as households with a disabled member, households headed by women, and households of old people. Should they meet with difficulties in the process of transfer, relocation, and rebuilding, both the village committee and the township government will provide help. The help may be in the form of giving guidance, supplying materials, labor and/or in cash. These measures are geared to ensure a smooth resettlement of the households and guarantee that the housing condition of the resettled households is equal or better than prior to resettlement.

188. While the compensation is generally disbursed based upon payment of a standard amount per square meter of a particular type of construction, some households to be resettled will receive supplementary compensation in those cases where the standard compensation is not adequate to cover full replacement cost. For example, in some areas construction materials and/or labor may cost more than assumed in the compensation standard. In this case, supplementary compensation would be provided.

5.2.4 Affected Schools and Government Buildings

189. Relocation of the affected schools, health facilities and other government buildings will be handled by compensating the unit owner, the township or village council that will be responsible for rebuilding them. Compensation will be provided for structures and transition fee. If the schools or health clinics will be expanded, the township or the village council will contribute the incremental cost from the governmental education fund. PRC pays much attention to education and under general conditions, for most of the affected schools, their conditions after the removal and resettlement will be improved. The new school will be constructed and functioning prior to the demolition of the old school.

5.2.5 Affected Enterprises 190. Enterprises decide whether to rebuild or relocate affected facilities. The affected employees will be compensated for loss of wages during the stoppage/transition, and they will have priority for re-employment after relocation. If employees are out of work as a result of a decision not to rebuild, local government must provide proper support to ensure that workers obtain training, get new jobs or get pensions to maintain their living standards.

191. Any shop or business affected by the Project will be compensated on the basis of the same principles as enterprises. Owners will receive help from the local government as early as possible to relocate to a proper place, minimizing or avoiding losses. Losses will be fully compensated before demolition. Home shops will be included in the list of household assets calculated during the resettlement census; however they will require higher compensation rates to reflect the structure of their premises.

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192. Townships and villages will help the affected enterprises and shops to choose relocation sites and to rebuild and re-establish their businesses. The relocation sites for the enterprises owned by townships or villages should still be within the boundaries of their original townships or villages, while private enterprises can obtain or rent a new piece of collective land either in their original village or somewhere else to re-establish their businesses after getting their compensation.

5.2.6 Affected Infrastructure 193. The CLR Project will affect some infrastructure including telecommunications lines, electrical transmission lines, roads, irrigation facilities, drainage systems, water and sewer lines, etc. When infrastructure is affected, the Project will either avoid, or minimize, or replace the facilities or pay appropriate compensation to the owners, agencies, or providers of infrastructure services. For cash compensation, standards will be determined based on the principle of restoring the original function, original scale and original standard. In any case, the affected facilities and services will be restored as quickly as possible, or temporary facilities will be provided before demolition or relocation of the existing facility to ensure that there is no significant impact on the quality of services for the local people. Construction supervision personnel will monitor to ensure that replacement or temporary services and facilities are in place before demolition.

194. The three major types of measures for the recovery of the infrastructure affected by the Project are as follows:

¾ Some will be recovered directly by the railway construction units in the process of construction, such as irrigation channels and township and village roads; ¾ Some infrastructure, such as telecommunication, broadcasting, and power lines, will be relocated by the specialized organizations; 195. Some basic public facilities, such as water towers and power transmission lines, will be rebuilt by the affected parties.

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SECTION 6: INCOME RESTORATION STRATEGY

6.1 CURRENT INCOME LEVEL AND VULNERABLE HOUSEHOLDS

196. In China, average net income per capita of rural residents in 2005 was CY 3,255. In 2005, it was CY 7,215 in Yubei, 4,280 in Jiangbei, 3,480 in Changshou, 2,780 in Fuling, 2,430 in Fengdu, 2,296 in Shizhu, and 1,686 in Lichuan. The surveyed households in these districts along the alignment in Chongqing municipality except for Fengdu were all above the national average for 2005. The Lichuan households surveyed averaged net incomes per capita of CY 1,863. Fengdu, Shizhu, and Lichuan are national-level poverty counties.

197. As described in Section 3, agricultural production remains the main income source for most people along the CLR alignment especially as one travels eastward from the Chongqing metropolitan area, centered on grain, cash crops and some raising livestock and forestry. However, for those households able to own and operate a business generally have higher income levels. Local wages also is an important income source for those fortunate to be living in or near areas where there are wage-earning opportunities. People are also working away from home and sending money back to their households and relatives. For those households that lose land, alternative income generation strategies are needed.

6.2 LIVELIHOOD RESTORATION STRATEGY

198. During the preparation of the RP, SSDI has discussed the long-term income restoration strategy with cadres of the local governments and villagers along the railway, and has become familiar with the income restoration strategies.

199. According to the Directive and Instructions for Facilitating Land Compensation and Resettlement issued by the Ministry of Land Administration on November 3, 2004, (Document No. 238) the resettlement of farmers would adopt the following approaches:

¾ Resettlement for continued agricultural production. In most villages along the alignment, reserve farmland is available and, if requested by AP, will be allocated to replace losses. This is possible in most affected villages where farmland losses are less than 10 percent.10 If replacement land is allocated to AP, either from reserve land or from land adjustment, the land compensation and resettlement subsidy will remain with the village collective to either be used collectively or disbursed to all villagers equally. If the AP prefers cash compensation, the land compensation and the resettlement subsidy will be paid to the AP. This latter option is likely when the amount of land lost is small. Following this approach, few affected households will require further rehabilitation to restore their losses. ¾ Resettlement for re-employment. Local governments will provide the farmers with free job training and arrange new jobs for them. Under the same conditions, the organization that acquires the land will give preference in hiring those farmers who lost land. For the villagers whose collective land was acquired within the city planning area, it will incorporate those people who lost land into the urban employment system and establish a social security system;

10 In cases where reserve land does not exist, some households will surplus land may voluntarily return their land to the collective. The compensation will be paid to the household that returned the land.

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¾ Resettlement for having shares and dividends. For those projects that will have stable profits, the rural collective may negotiate with the organization that acquires land to exchange the compensation for land as shares, or exchange the right of using land as shares for those villagers who choose this form of compensation. The collective and households, under the conditions of the agreement, will have benefits with preferred stock.11 This is policy but is not applicable to this Project. ¾ Resettlement for relocation to other places. If the local area does not have the necessary productive land to provide farmers with equivalent replacement land, after consultation with the collective and the households, AP may relocate to other places under the government’s arrangement.12 200. Livelihood restoration will be based on capturing construction phase jobs in the near-term, and the new employment and business development jobs created by the railway’s operation in the medium to long-term. Hiring preferences will be given to APs and vulnerable households throughout. Local, provincial and State programs will be able to provide assistance. CY 1.35 million in the resettlement budget for training has been made available to eligible APs for appropriate training and micro-finance. This will be targeted as needed to vulnerable groups including ethnic minorities. These will include persons that require re-employment and have lost their jobs, and persons that lose 20 percent or more of their land and are dependent on agricultural income for more than 50 percent of their total income.

201. There will be 4 new stations on CLR for mixed freight and passenger service, as well as 2 upgraded stations. These will provide the AP with opportunities for service businesses. Employment in manual labor associated with freight transport (such as loading and unloading freight cars, and transporting rail cargo to and from local factories and enterprises) will be possible. The passenger stations should become local passenger transport centers, with substantial development possibilities for local taxi and bus transportation, food and catering services, hotels, shops, and other tourist service businesses that will provide employment for local people.

202. Over time, the areas along the alignment are expected to continue to enjoy the region’s rapid economic development. Mining, manufacturing and tourism activities are expected to increase significantly, which will create many jobs for affected persons. Local officials will assist the AP develop appropriate plans so that they are able to take advantage of these opportunities.

203. As a component of the village resettlement and economic restoration plans, focus will be on establishing sustainable income-generating activities. Funds for training, skills development and livelihood including micro-financing and mentoring available from the local governments will be used for economic restoration. As the village resettlement and economic restoration plans indicate, the AP will be able to utilize the opportunities provided by CLR to develop long-term opportunities.

204. In addition to local government resources, an item for CY 1.2 million has been included in the resettlement budget under training that can also be used for micro-finance to start up small businesses. These funds should be used to augment local, provincial and State programs that are available in the PIA. Needs and opportunities will be identified in the Updated RP, and will be followed up with detailed activities for implementation.

205. One of the major benefits of CLR will be its impact on poverty reduction through job creation, and this will provide the basis for a sustainable livelihood restoration strategy. As discussed in the Poverty and Social Analysis report, CLR direct jobs, indirect jobs (jobs created

11 This option is not applicable to the Project because there is no indication that the AP will be offered the option to become shareholders in the CLR. 12 It is anticipated that nearly all resettlement will occur within existing villages. In the event that there are farmers who have to relocate outside their area, local governments will have to ensure that the necessary resources have been mobilized to support the relocating AP.

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from CLR purchases of inputs necessary for its operations), generated freight jobs (expansion of existing or development of new enterprises that will produce the generated freight), and tourism jobs have been estimated as shown in Table 6-1.

206. Nearly all of the generated freight jobs will be located in the Chongqing industrial area or other regions in China, and thus generally not directly available to workers in the PIA. Similarly, the majority of the multiplier jobs will be located in Chongqing or outside of the PIA. However, the tourism jobs and the direct jobs that will be generated in the PIA, will include a more than adequate number of low or unskilled job opportunities to AP.

Table 6-1: CLR Total Jobs Created, 2012-2031 2012 2017 2022 2027 2031 CLR Direct Jobs 3,530 3,692 3,853 4,826 5,616 CLR Multiplier Jobs 3,001 4,883 7,044 8,543 9,620 Generated Freight Jobs 34,909 137,732 185,357 250,985 315,885 Tourism Jobs 1,033 5,836 7,941 10,652 13,309 Total Jobs 42,472 152,144 204,196 275,006 344,430 Source: Consultant.

6.3 SPECIAL MEASURES FOR VULNERABLE GROUPS

207. As discussed in Section 3.3, there are affected households that will be especially vulnerable during relocation and resettlement. These vulnerable groups include rural households largely dependent on agricultural production for income. This means that their income is at risk to droughts, floods, and storms in addition to market price fluctuations. Poor households are also vulnerable during resettlement because they could lose their source of income and generally have few funds in reserve to cushion any added or unexpected expenses. Households that are headed by women, or have a disabled member, or are primarily elderly are generally the most vulnerable because they typically have fewer able-bodied adults capable of generating income. These households will need to receive the most attention during resettlement.

208. During land acquisition, removal and resettlement, the lives and production activities of the AP will be temporarily impacted and interrupted. The impacts could be quite severe on especially vulnerable households. Compensation will be provided to the AP before the land acquisition and demolition of their old houses. The compensation items will cover all of the following: land, young crops, trees, fruit trees, auxiliary facilities, houses, and fees for the removal and transitional period.

209. The compensation payments for the land acquisition will be given to the village collective which has the responsibility (per SC Document 28) to see that the compensation is largely distributed to the affected households. For vulnerable households, preference will be given for land for if desired by the APs.

210. In addition to the above cash compensation, special aid and attention will be also given to the people affected such as defining and providing new land areas free of charge for the impacted settlers to build new houses; giving guidance in the purchase of construction materials; and preparation of the new house’s bases.

211. Special concern will be given to poor and disabled people and households headed by women, according to their condition, offering them labor or necessary allowances. The AP will be consulted regarding their choice of new house sites, with priority for selection given to potentially vulnerable households, including poverty households, households with elderly members, households with disabled members and households that are headed by women.

212. For households requiring assistance, the village will provide the necessary labor and materials to ensure that the new house is at least comparable to the existing one. For poor households that are headed by women or a disabled person, the village will provide labor at no

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cost to the household, so that costs for labor calculated in the compensation agreement may be applied to upgrading the house or for other purposes as determined by the AP.

213. In China, women’s rights and interests are protected through the “Protection Law for Women and Children of the People’s Republic of China”. Rural and urban women have the same rights as men – they should not be subject to discrimination and their rights and interests should not be slighted. The All China Women’s Federation (ACWF) has branches in all townships and most administrative villages and is involved in a number of programs designed to help poor girls attend school, provide assistance, training and micro-credit to women and woman-headed households in poverty, to help train women leaders and to improve women’s health. As noted in Section 3, the ACWF has considerable experience assisting women with income generating activities in the PIA, and it has indicated that it will work with appropriate agencies and women to develop and implement measures that will facilitate income restoration for women and their households.

214. During the construction of the CLR, the railway construction units will employ many unskilled workers. Most of these employees with salary amounting to CY 20-30 per day will come from the local villages. AP will receive preferential priority in hiring for construction jobs. It will be a significant opportunity for the affected persons to restore their short-term income. Local government will assist to coordinate contractor needs with local capacity, and will help to organize labor and basic training prior to contractor mobilization, including for direct labor hire for construction, services such as cooking and cleaning, and the provision of construction materials.

215. Vulnerable people from the impacted households will have priority for employment during CLR’s construction. MOR will require that the construction units employ 50 percent of their unskilled workers from local poor people and others, including women, who lose their main source of income due to CLR land acquisition and resettlement. The railway support offices from the counties and townships will work together with the construction and engineering contractors and/or their subordinate construction teams to implement these preference policies.

216. During the construction, as the construction units come into villages and the population of temporary workers increases, job opportunities will be created. Affected persons can increase their income through setting up eateries, hostels and shops to service the construction workers, and by growing more high quality fruit and vegetables for sale to these workers and those who feed them.

217. A total of 163,123 person-years of unskilled workers will be required over the 4-year construction period. Over 80,000 of these person-years will be in the PIA, and reserved for poor households. About CY 530 million in wages will be paid to these workers in the PIA. Villages and households along the alignment will be able to take advantage of these employment opportunities and utilize them as a basis for future employment, business development, or house and farm improvements.

218. Potentially vulnerable households and groups have been identified. Specific mitigation measures to ensure that AP in these households and groups benefit from CLR and are able to develop sustainable livelihood restoration are discussed below. As noted above, 1.2 million CY has been set aside for training and micro-finance for APs to complement locally available programs. These funds will be used specifically to support vulnerable groups including ethnic minorities as needed to ensure that they are able to capture employment and business opportunities during the construction of the railway.

6.3.1 Poverty and Other Vulnerable Households

219. Areas along the alignment range from relatively well-off to some of the poorest in China. The well-off areas near the Chongqing urban/industrial area have benefited from China’s recent economic growth. At the same time, many villages located towards the eastern part of the alignment have been relatively isolated from these developments, and these are where the very

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poor live. The links between poverty, topography, and transport systems are apparent in the PIA. Most people living near the Chongqing developed area have diversified sources of livelihood and a sustainable standard of living. People living in the mountains or in isolated areas have too limited fertile land and insufficient means of livelihood. They also live in an area prone to drought, floods, erosion and uncertainty. The main causes of poverty in the project areas are: (i) natural calamity; (ii) lack of infrastructure; (iii) very limited and unsustainable source of livelihood; (vi) uneven economic development; and (v) poor health. The Project will benefit about 5.5 million people in the project area. About 65 percent of the PIA population live in rural areas and 10.7 percent are poor with a net income per capita of less than CY 900 in 2005 (nearly $1 per day using purchasing power parity exchange rate).

220. In terms of poverty reduction measures, about 163,000 unskilled person-years of work will be created during the construction of the railway. Half of the unskilled work will be targeted for the poor, totaling 81,500 person years at total wages of CY 529 million or CY 7500 per-person year, more than 8 times the poverty line of annual income at CY 900 per capita. Priority will be given to women, resettlement-affected people, ethnic minorities and other vulnerable people. When the operation of the new railway starts in 2012, approximately 51,000 jobs will be created, and will increase to 372,000 jobs in 2031. The local governments are responsible for provision of social services and poverty reduction funds for County Poverty Alleviation Planning (CPAP). This added revenue from railway construction taxes will be used for the range of poverty reduction and social activities including mitigation of negative impacts on HIV/AIDS/STIs, human trafficking and environment, with special attention to resettlement-affected groups, women, ethnic groups and other vulnerable people in the project area, including a program of income sustainability for the poor after the project implementation, especially those hired under for construction jobs on the project.

221. The Project’s railway stations, which will be connected to all levels of road network accessible by all villages including the poor, will create various jobs, and help distribute the benefits in the project area. There will be sufficient space in and around the stations for local area development, and the poor, women, ethnic groups and other vulnerable people will be supported by local governments to sell local specialties and other goods and services.

222. All of these direct and indirect impacts of the project will provide conditions of the Chinese goal of micro-urbanization for poor families to: (i) move away from unsustainable, mountainous and isolated farmlands; (ii) have better access to markets, and advanced educational and health facilities especially for pregnant women; and (iii) build a sustainable future in new centers of economic activity, while complementing poverty reduction activities facilitated by the local governments to achieve the goal, such as assisting the poor with urban migrations, relocations, employment, local economic development, farmer-based rural tourism, agricultural product development, and health and physical infrastructure and natural resources improvement.

223. These concerted efforts avail CLR’s impact on job creation to the poor will promote sustainable livelihood restoration for affected poverty households.

224. As noted above, additional resources for relocation, house reconstruction and land reclamation will be provided to AP poverty households as necessary. These resources include but are not limited to house site priority preferences, free labor for those households lacking adequate capacity for self-rehabilitation.

6.3.2 Women

225. Analyses of gender-disaggregated data and discussions with representatives of the ACWF indicate that women will need some assistance to fully benefit from the project. Data collected for the Poverty and Social Assessment and the RP indicate the following: (i) women comprise 48.3 percent of the total population in the project area; (ii) women primarily engage in agricultural activities; and contribute between 50 and 60 percent to non-cash household income; (iii) male members from poor households tend to travel further for migrant labor opportunities than

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non-poor males, leaving behind a high percentage of households headed by women. Women’s views are represented on village committees and when men go away, women make many decisions. Though lacking knowledge about their rights, women nonetheless have equal rights based on strong legal instruments with good enforcement mechanisms. Women gain access to government through the ACWF.

226. The construction of the railway would create opportunities for local area development by: (i) facilitating flow of materials and information into the area; and (ii) accelerating development of local industry and tourism. Compensation for land loss can benefit women to help them shift to cash crops or non-farm income which could reduce their burden. A microfinance program may be one instrument to give women resources to establish a business. Many of the service sector jobs that will be created by the railway development and in the tourism sector seek women employees. The ACWF will provide business management and financial assistance to women interested in setting up small businesses that serve the construction crews and growing tourist sector. In addition, as women are at risk for HIV/AIDS/STIs and human trafficking, mitigation measures will pay special attention to this segment of the population.

227. Poverty and social enhancement measures have been built into the project design, and special mitigation (or protection) actions have been included into the RP. Women, especially female heads of household, will be consulted as schools provide an informal source of daycare for their children. Poor women heads of household will receive assistance so that their children can remain in school, thereby helping to break the cycle of poverty while at the same time freeing women’s time during the day to work. Widows will be eligible for special assistance, if necessary, during land acquisition and resettlement. Women will be given priority for project-generated employment during construction and operation of the railway. The rise in female participation in the labor force and tourism market will increase women’s net income, thus improving overall family welfare, and increasing the status of women. Annex 5 presents a matrix for the Gender Analysis and Mitigation Measures.

228. As with poverty households, affected women-headed households that lack adequate capacity for self-rehabilitation with respect to relocation, house reconstruction and land reclamation will be provided with additional resources including but not limited to house site priority preferences, free labor, and other resources as needed. Women will also be given hiring preferences. The ACWF will monitor the progress of and mentor the sustainability of women’s participation in the acquisition of benefits from CLR.

6.3.3 Ethnic Minorities

229. Minorities constitute 14.32 percent of the total population in the PIA. Almost all of these are Tujia and concentrated in Shizhu and Lichuan. SSDI estimated that about 13.25 percent were minority households, of which Tujia account for 90.6 percent and Miao 9.4 percent, and will be affected by LAR. Based on Table 2.6, about 1,520 minority households (6,080 persons) will be partially affected by land acquisition, and 227 households (909 persons) affected by house demolition. The Consultant’s and SSDI’s household surveys as well as evidence from other surveys indicate that Tujia and Miao are fully integrated into the local socio-economic structure and institutions. All affected Tujia and Miao will benefit from the special mitigation measures as well as those provided for all potentially vulnerable households where applicable. Tujia and Miao will have priority to receive replacement farmland if desired by the AP. Special measures will include:

¾ Livelihood training for two household members, including at least one female. Training costs will be fully paid by local government, including living expenses.

¾ Minority culture will be promoted. Households that relocate will receive a CY 1,000 bonus for adopting traditional designs, materials and architecture in their new houses.

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¾ Affected minority households that lose more than 20 percent of their cultivated land will receive access to credit for starting up a non-farm business (up to CY 20,000).

¾ Minority households that want jobs in project construction will receive preference for basic training and hiring, including women.

¾ In the Yinhe Village, minority households will be given preference to locate shops in the new station area. Local government will organize business development and marketing.

230. Importantly, Shizhu and Lichuan are implementing tourism strategies in conjunction with Chongqing to capture the high number of tourists that come to the municipality (about 50 million per year, which is expected to double in 2010). Shizhu and Lichuan can offer cool mountain retreats, nature preserves, and a glimpse of a timeless idyllic rural lifestyle to those seeking a different experience. Lichuan has developed a 20-year tourism master plan and Shizhu is currently preparing one. Local officials understand that they are not going to attract all of Chongqing’s visitors, nor do they want to; rather, they recognize that they can capture some visitors and this will be a tremendous boost to sustainable and pro-poor economic growth.

6.3.4 Other Vulnerable Groups at Risk

231. This category includes seriously affected households that lack adequate capacity for self- rehabilitation with respect to relocation, house reconstruction, land reclamation, and livelihood restoration. They are not currently poverty households but they are at risk of becoming impoverished due to house loss, land loss, or livelihood loss due to various difficulties. .

232. AP falling into these categories (including minorities) will be provided with additional support including free labor and house site priority preferences as needed with respect to relocation, house reconstruction, and land reclamation as described above.

233. As indicated in Section 6.6.1, a number of jobs will be targeted for poor households and these will facilitate livelihood restoration.

234. Livelihood restoration assistance may require other forms of assistance. For example, if a household lacks capacity to secure an employment opportunity due to age or health, then pension support will need to be provided. These AP will be identified from the resettlement census and DMS. There are programs that can provide this assistance including the new funding for rural poor presented at the 2007 People’s Congress. Poverty Alleviation Offices, the RCSOs, and the ACWF will identify these high-risk AP during the Resettlement Census, and work with appropriate agencies and institutions to ensure that these assistance programs as outlined in Section 3’s discussion on poverty reduction activities, and provide support as needed. For those requiring pension support and other assistance, local governments will agree to directly intervene and provide the assistance as directed under the policies to expand social welfare benefits and pensions to rural residents by the National People’s Congress in 2007.

6.4 ECONOMIC REHABILITATION FOR RURAL RESETTLEMENT

235. According to SSDI, only three villages will be substantially affected by resettlement. These are the villages of Dinzhuang in Fengdu, Yinhe in Shizhu and Xinyang in Fuling, where three new passenger/freight stations will be built. The other new station in Changshou will be located in an industrial area.

236. Resettlement can provide an excellent opportunity for the AP to benefit from the Project through compensation for land acquisition, relocation of housing, employment during construction (priority hiring preference will be provided by contractors), and skills development provided by resettlement training programs. Income generated by the AP and villages from these sources

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could be utilized for a range of investments, from setting up village enterprises to upgrading farm equipment and technologies to developing properties outside the village, or any mix of the above.

237. Local officials will be responsible for disbursing funds in a timely manner. But it will be very important that the census for compensation fully identify the special needs of these villages, and that the Updated RP will include detailed plans and a set of actions so that affected villages can fully exploit the opportunities provided by the Project. Opportunities have to be defined with the villages and appropriate plans developed prior to compensation payments, if they are to maximize benefits from the Project.

238. Once the degree of impact of villages is known (after final alignment affecting a village has been completed), the process of developing economic rehabilitation plans for seriously affected villages can commence with significant involvement by the local people affected. Steps include, an inventory of the village’s resources, an analysis of the strengths and weaknesses of the village and its people, and the opportunities and threats facing them, both from resettlement and from adapting to the changes in income structure and daily life that will likely result. With this basic framework, villages can design processes to use their compensation to best rebuild their lives and their strategies for getting income in the new realities they will face after construction begins.

239. Different villages will face different degrees of impact from loss-of-land and loss-of- housing. They will differ in size, in the education and skill levels of their working-age adults. They will differ in resources and in their proximity to centers of economic development. Different villages with differing circumstances will need different strategies.

240. The impact of land acquisition will be considered within the context of the amount of reserve land in order to ensure that the village is able to accommodate relocated households. However, there are households that will be substantially affected by resettlement. The impacts of the railway on a village are two-fold:

¾ Adverse impact on agricultural production. Cultivated land is a primary production resource for agricultural production and it is non-regenerative. Land acquisition for the railway will decrease this resource, and, therefore, decrease the gross production of the village. The land for the railway may include some of the best land for cash crops such as grain and vegetables. Some of the land to be acquired may be quite fertile and irrigated. Therefore, land acquisition will result in production losses in the near-term and it will also take time to develop new land into producing land. ¾ Positive impact. Resettlement will provide the potential to generate economic development in a village. Local officials in consultation with villagers may be able to utilize some low-yielding land for a small light manufacturing facility that will produce or package traditional herbal medicines or other consumer items. This will lead to job creation and as part of the compensation agreement, funds will be provided for villagers to be trained to operate the equipment. Importantly, the local government will utilize some of the revenue it receives from railway construction activity to assist in establishing the small enterprise. 241. In summary, railway construction can bring a village more benefits than adverse impacts. The living standard of resettled people will be at least equal to their original standard of living. Principles for resettlement will encompass the following:

¾ Resettlement compensation will be based on allocating a majority of the funds to the AP. ¾ The remaining collective funds, if any, will be used for increasing the efficiency of agricultural production, skills training, and establishing a small light manufacturing enterprise.

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¾ Resettlement of villagers will be within the village, and vulnerable households will have priority in selecting sites. ¾ When possible, relocation will be in stages so as to minimize the need for temporary housing. ¾ Vulnerable households will receive special assistance throughout resettlement and economic restoration period. 6.4.1 Housing Reconstruction

242. As noted in Sections 4 and 5, the following principles for relocation and rebuilding will include:

¾ The AP will be consulted regarding their choice of sites, with priority for selection given to potentially vulnerable households, including poverty households, households with elderly members, households with disabled members and households that are headed by women. Farmers will be able to rebuild in areas that minimize the loss of arable land. ¾ The new house site will be on suitable terrain, and minimize the loss of good quality agricultural land. The site will be leveled and prepared for construction by the railway construction contractor at no cost to the AP. ¾ For farmer households resettled in scattered locations, the village will determine house sites on appropriate terrain, and the farmers will build the houses by themselves if they so choose. ¾ For vulnerable households requiring assistance, the village will provide the necessary labor and materials to ensure that the new house is at least comparable to the existing one or the minimum standard as determined by the DMS and in the Updated RP. For poor households that are headed by women or a disabled person, the village will provide labor at no cost to the household, so that costs for labor calculated in the compensation agreement may be applied to upgrading the house or for other purposes as determined by the AP. ¾ Telephone lines and other affected infrastructure will be restored to the original standard. ¾ Power supply voltage for residences will be 500W per household, and for agriculture, 15W per mu. 380V will be adopted for electrical wires from the transformer to the village and along trunk roads. Other electricity wires will be 220V. ¾ Households will be connected to the central water system where appropriate. Several scattered sites will utilize wells that will be dug for railway construction. The water consumption standard is 70 liters/day/person, plus an agricultural allowance for livestock. 243. Further details on house compensation and relocation plans are provided in Section 4.4 and Section 5.

6.4.2 Project-Related Income Restoration Measures

244. Focus will be on developing sustainable income generating opportunities. This will be based on both opportunities provided during the construction phase as well as the longer-term.

¾ During railway construction, 50 percent of those able and willing to work for wages from the village will be hired by the contractor or by companies producing sand and gravel from a nearby location. Hiring preference will be given to the poor and other potentially vulnerable households.

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¾ During construction, those households interested in supplying or servicing the work camps will be given priority preference for contracts over outsiders. For potentially vulnerable households, they will be supported with training (prior to the start of construction), micro-financing, and mentoring for starting businesses. In addition, the village will organize to ensure that women are given preference to establish these businesses and help to organize community support so that female-headed households with children are able to secure income. ¾ During construction, transition training will be provided to village members employed by the contractors. Training will include those with businesses that supply the work camps, to ensure that earnings are utilized appropriately while simultaneously promoting sustainable activities. ¾ For households that are not able to participate in longer-term sustainable income- generating activities, training and advisory services on the use of compensation funds will be provided so that these funds can be utilized over an appropriate time- span such as in interest-bearing savings account. 6.4.3 Livelihood Restoration Strategies

245. For sustainable income generating activities, the following will be implemented:

¾ Villages and groups will prepare plans to increase the value of production by switching to higher value products and upgrading agricultural inputs. Government officials will advise on these efforts. ¾ Income diversification will be emphasized based on the potential for employment at the new light manufacturing enterprise and the establishment of shops and other enterprises. Training and micro-financing assistance as well as mentoring will be provided by local officials, ACWF and NGOs. ¾ Poor and other vulnerable households will be given hiring preference at the new enterprise. ¾ For the village shops that will have to relocate, all moving and transition costs including lost income and wages for employees, will be fully compensated. The village in conjunction with the shop owners will determine the most appropriate sites for the new shops, and the plot will be leveled and prepared for construction similar to the arrangements for relocated housing. ¾ Station area development including the provision of porters, freight haulers, food service workers, shops, cleaners, and drivers. 6.4.4 Livelihood Training

246. When the AP and villages determine in conjunction with appropriate agencies that new enterprises or other employment opportunities will be a viable alternative to previous income earning activities, and training will be a necessary component of the new job or enterprise, resources will be made available to facilitate the transition to a new job or for the establishment of the new enterprise. In addition, the AP and villages will be provided with advisory services on the use of compensation funds to ensure that they are optimized for their intended purpose.

6.4.5 Restoration of Lands Temporarily Occupied

247. Land that is temporarily acquired will be restored to its original condition, or improved (e.g., level poor land and add topsoil for farming), or if the village so decides, change the land use in such form as to facilitate new uses such as the site for a new village enterprise or school. As part of the Village Resettlement and Restoration Plan, the village will determine how land that is to be restored after temporary acquisition will be utilized in coordination with the local land administration bureau.

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6.5 VILLAGE ECONOMIC DEVELOPMENT AND INCOME RESTORATION PLANS

248. The three villages where the new stations will be built have begun to prepare village development and income restoration plans. These plans are part of the consultation and participation process that includes local government and village APs. The initial village plans are summarized below.

249. Following submission of the Feasibility Study for approval by NDRC in August 2007, the Leading Preparatory Group and SSDI will become involved in the preparation of the village plans by providing technical and other assistance as necessary. This will include:

¾ Provision of the layout of the proposed stations showing affected land and structures. ¾ Assistance in determining the relocation options for households, infrastructure, and other facilities within the context of the village’s total land holdings and land use. ¾ Prepare overall cost estimates for relocation and reconstruction. ¾ The local RSCO will ensure that local banks and other appropriate agencies consult with the village and AP to identify and determine suitable investment strategies. Through this process, APs needs will be identified as will resources that can be utilized to meet them. ¾ The local RSCO will work with the village and AP to implement the development and income restoration plan beginning in October 2007. ¾ Actual construction of the stations will not begin until October 2008, with LAR beginning in from mid 2008, so there is still time for preparation work. These village rehabilitation plans will be more detailed in the updated RP. 6.5.1 Dingzhuang Village, Fengdu County

250. A new passenger and freight railway station will be built in Dingzhuang Village, Sanhe Township, Fengdu County. SSDI has estimated that there will be 21 households (about 63 people based on 3.0 persons per household) affected with removal of 9,860 m2 of structures, and the acquisition of 180 mu acquired. Again, the 180 mu (12 ha) is still well above the 7 ha in the site plan for the station. The village has a total of 1,347 mu of cultivated and 1,348 households.

251. The RP will follow the policies and regulations set by the government. More specifically, the village has planned for resettlement, economic production restoration, and the development of new enterprises. These are discussed below.

252. Resettlement will be based on a new residential area that will be developed near the village for those households choosing to remain in the village.

253. For economic production restoration, the village groups will use compensation funds to shift into higher value market-oriented crops.

254. For business development, the village plans several activities. First, they plan to supply porters and baggage and freight handlers to the station and, in conjunction with the nearby port on the Yangtze, logistics services for storage and inter-modal transport. The village also plans to develop a restaurant and shops at or near the station to service rail customers.

255. The village has already determined that it will give priority for jobs to the poor, women and disabled to ensure that they will benefit from the railway. For those requiring training to work at these jobs, courses will be organized through the local government. For villagers that want to work away from the village, training programs will be organized to help them secure outside employment. The village will give living subsidies to men over 60, women over 50, the disabled and unemployed who require assistance. The village leaders have stated that their goal “is to

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make sure that the affected people will have better living standards (as a result of CLR), and that the income level of all villagers will increase.”

6.5.2 Yinhe Village, Shizhu County

256. The village is about 2.5 km away from the county seat and 1.5 km north of Xialu town. The total land area is 9.88 square km. Recent estimates by SSDI indicate that 18 households (about 71 people based on 3.9 persons per household) will be affected by the removal of 7,430 m2 of structures and the acquisition of 189 mu of land.

257. For economic production restoration, the village plans to expand its cash-cropping and animal husbandry activities. This will include intensifying production on the same amount of land by utilizing improved seeds, irrigation improvements, and increased mechanization. In addition, more land will be brought into production from the reserve land.

258. For business development, the village will assist those affected by LAR to receive priority for jobs at the station. In addition, the village will assist in the establishment of services sector businesses including restaurants and shops at the station.

259. The village also plans to develop agro-processing businesses in order to add value to their agricultural products including expanding animal husbandry and downstream products from raising pigs, rabbits, goats and cattle. For all of the economic activities, the village will assist with training in order to ensure that residents are able to capture job opportunities and increase their incomes.

260. For resettlement, the village will assist those who choose to move to urban areas. For those who choose to remain in the village and have less than 0.5 mu per capita, living subsidies will be provided to ensure that their living standards are the same as before, if not better because of CLR.

261. Railway construction needs considerable local construction materials, such as sand and stone. If geological conditions are favorable, the AP may set up sand yards and stone quarries to provide construction units with those materials. An estimated 50 percent of the ballast, nearly all the sand and gravel, and all of the brick will be procured from areas along the alignment. Enterprises supplying these products have been providing them to the expressway that is currently being constructed parallel to the alignment. Local suppliers will be encouraged to give hiring preference to vulnerable AP whenever possible.

6.5.3 Xinyang Village, Fuling

262. The village is close to the urban center of Lidu Township. As a recently district-planned village, it has comprehensive infrastructure and access to convenient transportation.

263. The village economy is currently based on agricultural production and processing with particular emphasis on producing Sichuan pickles and preserved vegetables. There is one plant that produces finished products and 56 small plants that produce semi-processed products. These plants will continue operating through and following railway construction.

264. LAR impacts on the village are currently uncertain as the exact location of the station has not been determined but will be included in the updated RP following the DMS. About 1,790 mu are cultivated, and there are 450 mu of unused land. An estimated 180 mu will be required for the station, or about 8 percent of the total cultivated and unused land.

265. The village will be able to provide some laborers to participate in CLR construction activities. The current labor pool totals 1,200.

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266. Following construction, the village will develop services to support the station including porters and baggage handlers, food services, shops and similar activities. The village plans to secure assistance to help people take jobs with the railway or to establish businesses.

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SECTION 7: INSTITUTIONAL FRAMEWORK AND ARRANGEMENTS

7.1 INSTITUTIONAL FRAMEWORK

267. A resettlement institutional network will be set up to achieve land acquisition, building demolition and removal, and resettlement. Horizontally, the network includes two parties, CLRC, the JVC, including its contractors and subsidiaries, and local governments. These organizations include the land acquisition and removal group of each contractor, the land acquisition and removal group of the RCSO under each level of the government, and the land administration bureaus of local governments.

Figure 7.1: Resettlement Organizational Network

CLRC Local Governments

Contractor LAR Group RCSO LAR Group County Land Administration Bureaus

268. Government leaders have been given responsibility for these organizations and leaders from various departments are members of the organizations. The governments all indicated that local Development and Reform Commissions (DRC) are responsible for issues related to project preparation. When the Project starts, all local governments will establish railway support offices or similar organizations to coordinate and support the Project.

269. Resettlement organizations under MOR and operation administration units are as follows:

¾ MOR Project Management Center/Foreign Capital and Technical Import Center (FCTIC) ¾ CLR Preparatory Leading Group/CLR Company (when formed) ¾ Land Acquisition and Removal Groups of Contractors ¾ Overall Design Group for CLR of the SSDI 270. Resettlement organizations established in local governmental departments include the following:

¾ DRC (Development & Reform Committee) of Chongqing City and Hubei Province/RCSO ¾ Chongqing Municipality Development and Reform Commission/RCSO ¾ Yubei Development and Reform Commission/RCSO ¾ Jiangbei Development and Reform Commission/RCSO ¾ Changshou Development and Reform Commission/RCSO ¾ Fuling Development and Reform Commission/RCSO ¾ Fengdu Development and Reform Commission/RCSO ¾ Shizhu Development and Reform Commission/RCSO ¾ Chongqing Land and Resources Administration Department ¾ Hubei Provincial Development and Reform Commissioon/RCSO ¾ Lichuan Development and Reform Commission/RCSO;

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¾ Hubei Land and Resources Administration Department; ¾ The Land and Resources Administration Bureaus at all levels along the railway line (7 counties, and districts) ¾ Land Acquisition and Removal Groups of Affected Villages and Affected Townships ¾ Table 7-1 outlines the Resettlement Process and Procedures, from project proposal stage to implementation. Within this framework, there are considerable opportunities for consultation and information exchange, including grievance and appeals mechanisms.

Table 7-1: Resettlement Process and Procedures Government Oversight Public Involvement

Project Proposal

Informal Consultation Revision to Land Use Plan Pre-Examination of Land Use and Basic Farmland

Stage I - Planning Approval of Land Use by LRB

Approval of Feasibility Study

Investigation/Survey of Inventory Land Acquisition Impacts Stage 2 - Registration of Land Approvals Public Hearing(s) Compensation by LRB Prepare Resettlement Plan by Land Use Unit and submit to LRB

Review by LRB Public Disclosure Public Hearing(s)

Disputes resolved by Local Government

Approval of Proposed Land Acquisition

Notification of Removal Cut-off date Stage 3 - Approvals

Disclosure of Compensation and Resettlement Plans Grievance

Detailed Measurement Surveys

and

Compensation Agreements

Appeals Compensation Payments

LA and house removal Mechanism

Rehabilitation Measures

Source: Consultant

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7.2 INSTITUTIONAL OBLIGATIONS

271. Under the leadership of the county DRC/RCSO, the township governments and village committees are actually in charge of implementation of surveys, measurements, and confirmation of the affected land, buildings, attachments, and their removal.

272. The county RCSOs/DRCs are in charge of making plans for land acquisition, compensation disbursement, and implementation of relocation and resettlement.

273. The county Bureaus of Land and Resources are in charge of unified land acquisition, approval of the applications for land acquisition permits, and, jointly with the RCSOs, development of particular compensation and resettlement plans for their county.

274. The county Bureau of Land and Resources is the executive department of the government in charge of unified land administration, which assumes the following major obligations:

¾ To implement State and provincial laws, regulations and policies regarding land administration. ¾ To conduct unified administration of land and urban/rural land affairs, land registrations; to survey and record the amount of land; to categorize land into quality levels; and to record and distribute land use certificates. ¾ To be in charge of land acquisition and disbursement, compensation disbursement and land reallocation; to conduct unified checks; to disburse land used temporarily for construction; and to examine and apply for permission to use land. ¾ To administer the land market and to monitor and set right all kinds of illegal activities concerning land use. ¾ To investigate and deal with cases violating the land administration laws. ¾ To make plans on land utilities and preserve exploitation based on local plans, national economy and social development objectives in cooperation with relevant departments; and to check and monitor the implementation of plans. ¾ To make plans for farmland reclamation. ¾ To monitor basic farmland protection, land exploitation, and farmland reclamation.

275. The DRC/RCSOs at the district/county level are in charge of land acquisition, housing demolition, and population resettlement within their administrative areas and fund management. They are also responsible for collecting and synthesizing relevant data for land acquisition in cooperation with the CLR Leading Preparatory Group. They also have the obligation to coordinate and manage work done by local and other groups in conjunction with Project construction.

276. The provincial RCSO (the chief executive of the province or his/her designee is the head, and other members coming from the DRC, land and resources administration, labor, civil affairs, electric power administration, as well as departments of security, industry, and agriculture) is responsible for making macro-level policies and consulting with MOR, and for coordination and cooperation with the local governmental departments at all levels. In addition, the group sets the standards of compensation for the province.

277. The Transport Departments of the provincial DRCs (Chongqing Municipality and Hubei Province), as the macro management department of the provincial government for the Project, are in charge of conducting research of the essential issues and strategies concerning traffic and transportation development. Transport departments also take charge in making long-term and medium-term plans on construction of transport and economic development, as well as special plans and annual plans. Additionally, Transportation Departments examine and approve project

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plans and submits application for approval of the plans to higher institutions. The Transportation Department also functions as a coordinator in resolving significant issues in the implementation of transportation development plans. At the preparatory stage, as far as this Project is concerned, these departments of the province/municipality involved will undertake all of the coordinating and preparatory work for the CLR.

278. Land acquisition groups of the civil works contractors of all contracted sections are in charge of preparing and submitting applications for land acquisition, consulting with the local land departments on a daily basis, reporting progress in land acquisition, and handling incidental events.

279. Land acquisition groups of the CLR Construction Office of MOR in charge of construction of the railway project, will be responsible for preparing land use plans and consulting with the land administration bureaus and RCSOs at the county level.

280. The land acquisition group of the CLR Construction Office of MOR will be responsible for the land acquisition and resettlement of the Project. The group is also responsible for consulting and cooperating with the provincial and county-level RCSOs, as well as the internal monitoring of the Project during its construction.

281. The FCTIC of MOR has been coordinating the preparation of the resettlement plan and managing the socio-economic investigations and analysis conducted by SSDI and the Consultant. FCTIC will be responsible for coordinating the preparation and submission of internal monitoring reports to ADB.

282. The local governments in conjunction with design units of SSDI will conduct detailed measurement surveys on quantity and categories of the land acquisition, removal of houses and their appurtenances, and infrastructure at the stages of feasibility study, preliminary design and construction design, and are currently responsible for estimating the budget for resettlement, land acquisition, building demolition and removal. Actual land acquisition and resettlement budgets will be determined and approved by local governments prior to commencement of activities.

283. RCSOs will be set up at the various administrative levels and are attached to the DRCs. The tasks and obligations of these offices include coordination and cooperation of activities regarding resettlement during the construction and implementation of land acquisition, housing demolition, and resettlement.

284. It is required in Article 25 of the Land Administration Law that cities and counties affected should implement land acquisition plans as long as it is legally approved and information regarding institutional approval, the approval document number, the purpose, scope, area of land acquisition, the compensation standards, measures of rural population resettlement, deadline to get the compensation registration for land acquisition are publicized in local townships and villages where the land acquisition occurs. This constitutes the first official publication of resettlement. According to the schedule, this will occur after approval for the land use plans is granted, which is expected in July 2007.

285. It is required in the same Article that land administration at city and county levels work together with relevant departments to formulate, based on the approved land acquisition plan, compensation and resettlement plans and publicize in local townships or villages to get feed back from local rural collectives and the AP. This constitutes the second official publication of resettlement.

7.3 HIGH LEVEL COORDINATION

286. FCTIC, as the high-level coordination agency, is in charge of resettlement related affairs during the preparatory period of the Project, and resettlement monitoring and evaluation during and after the implementation period of the Project. ADB will also periodically monitor and

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evaluate resettlement implementation and will review reports to ensure compliance with ADB safeguard policies.

287. The CLR Preparatory Leading Group will assume the duty of the project owner on behalf of MOR and have close contact and cooperation with the local RCSOs. The provincial RCSOs will instruct their subordinate units that are responsible for land acquisition, housing demolition and relocation to deal with the affairs of land acquisition, building demolition and relocation as well as resettlement in close cooperation with the RCSOs at all levels.

288. RCSOs in Chongqing and Hubei are in charge of consulting on major issues with MOR and formulating the macro resettlement policies. RCSOs are in charge of coordinating and managing the tasks relative to the resettlement of this Project. They are not only in charge of drawing up and conducting resettlement, and managing and coordinating the resettlement plan, but also coordinating with the provincial RCSOs and railway construction units.

7.4 CAPACITY TO PLAN AND MANAGE LAND ACQUISITION AND RESETTLEMENT

289. The DRCs of local governments along the line have accumulated abundant experience of resettlement in constructing similar infrastructure projects including municipal projects, the Project, expressways, and other rail lines that are under construction or recently completed in the PIA. Officials are familiar with ADB policies covering involuntary resettlement. It is clear to officials in all districts on the alignment that PRC Law, Provincial Laws and ADB’s policy embody the goal of assuring that the economic well-being of affected persons is at least as good after the Project as it was before the Project.

290. MOR and local agencies have considerable experience in land acquisition and resettlement. The recent experience with other projects will provide a basis for the appropriate implementation of land acquisition and resettlement obligations under this Project. MOR and provincial officials will monitor to ensure that adequate support including training will be provided to local governments and villages as necessary, in order to implement appropriate land acquisition and resettlement procedures. While there may be sufficient resettlement experience at the ministry and provincial level, some counties may require some assistance. Similarly, some villages may have experience because of the current resettlement and construction of the expressway, while others may not.

291. As is the normal procedure, the local government will provide training in LAR procedures to the relevant county and township officials and village leaders who are directly involved with implementation. This will also provide an opportunity to explain ADB resettlement policy and requirements as stipulated in this RP. Training will be provided following submission of the Updated RP and prior to its implementation in October 2007.

7.5 RESETTLEMENT PLAN IMPLEMENTATION

292. The county-level Railway Construction Support Offices (RCSOs) will work closely with the County Resettlement Offices (CROs) and a County Resettlement Leading Group including representatives from the Land Administration Bureaus, Finance Bureau, Construction Bureau, Health Offices, ACWF, Poverty Alleviation Offices, and Agricultural Offices to identify APs, consult with APs on relocation and income restoration options, and develop plans for relocation and income restoration.

293. In conjunction with SSDI and RCSO, a schedule for relocation, land acquisition and income restoration will be prepared, and include monitorable targets indicating that APs have been satisfactorily relocated and received appropriate income restoration assistance.

294. Specifically, the RCSOs and CROs will provide detailed information to APs as to when their land will be acquired, where and when they will relocate, and the amount of compensation they will receive and when they will receive it.

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295. A similar procedure will be established for affected villages, with a Resettlement Working Group established in each affected village that includes APs.

296. There are five important components to successfully implementing the RP:

¾ First, as soon as possible, the County Resettlement Leading Group will be established in order to begin planning for resettlement. This will include an assessment of training needs, identification of severely affected villages, identification of potentially vulnerable APs, and preliminary estimates of the resources required including funding and sources of funds. ¾ Second, training will be implemented for those requiring upgrading of skills for RP implementation. ¾ Third, the scheduled work program will be implemented, and will include identification of agencies and persons responsible for specific activities, monitorable targets, and dates to begin and complete activities. ¾ Fourth, a follow up program will be developed for severely affected villages and potentially vulnerable APs in order to ensure that adequate resources have been allocated to assist these groups. The County Resettlement Leading Group and the County CROs will coordinate to ensure proper planning and implementation procedures are operationalized. ¾ Fifth, the monitoring program will be designed with the assistance of the SSDI.

297. Throughout the RP implementation process, consultations will be held regularly with the County Resettlement Leading Group, affected villages and APs. Consultations are key to successful implementation and help to ensure that potential grievances and other issues are dealt with before they become problems.

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SECTION 8: CONSULTATION PARTICIPATION AND GRIEVANCE REDRESS

8.1 PROJECT STAKEHOLDERS

298. Primary stakeholders of the Project are:

¾ People affected by permanent or temporary land acquisition ¾ People affected by demolition and relocation of buildings and other improvements ¾ People affected by relocation of factories and other business premises ¾ The organizations affected by the demolition and relocation of public facilities ¾ The individuals or collectives who own the above ground or underground attachments ¾ The affected village groups and villages ¾ The RCSOs and Bureaus of Land and Resources in the counties involved ¾ Ministry of Railways, including the related functional departments such as Planning Department, Financial Department, FCTIC, Appraisal Center, etc. ¾ CLR Preparatory Leading Group ¾ Construction Companies and Units

299. Secondary stakeholders include:

¾ PRC national government represented by the Ministry of Finance ¾ NDRC and Development and Reform Commissions of the provinces and counties ¾ Poverty reduction offices in counties ¾ All China Women’s Federation in counties and towns of the Project ¾ The Civil Administration Bureaus in the counties ¾ Second Survey and Design Institute and other design and engineering consulting firms which will be retained for detailed design and engineering supervision during implementation ¾ The external independent monitoring agent of resettlement related to the Project ¾ The domestic and international loan institutions for the Project ¾ Potential railway passengers and freight shippers on the existing line

8.2 MECHANISMS FOR STAKEHOLDER PARTICIPATION

8.2.1 Consultations and Meetings

300. Table 8-1 shows that during the CLR project-planning period, a number of meetings have been held with national, provincial and local authorities. Meetings have also been held with representatives of enterprises that could benefit from providing inputs for the construction and operating phases of CLR. Most importantly, affected villages have been identified, and meetings held with residents as well as representatives of schools and other agencies that could be potentially affected. These meetings have been followed by a range of surveys in order to assess the number of affected persons, agencies, schools and enterprises, as well as the intensity of the impacts: e.g., how many people will have to be relocated, how much land will have to be acquired at what estimated cost, how many schools will have to be relocated, etc. A total of 337 households that are likely to be affected by LAR were surveyed by the Consultant in July-August 2006 and July 2007, with the 2007 surveys conducted in order to reflect changes in the alignment.

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These surveys updated the information from the 308 households surveyed by SSDI in March 2006.

Table 8-1: Stakeholder Meetings and Surveys Persons Date Region Agency Participants Main Topics (7,873 total) Villagers, local government officials, Opinions of local government and railway Feb-06 Project region SSDI 160 leaders of railway department authorities about CLR

Villagers, local government officials, Opinions of local government and railway Feb-06 Project region SSDI 80 leaders of railway department authorities about CLR

Households that may experience Feb-Mar 06 Project region SSDI 1,182 Socioeconomic data and opinions on CLR impact-resettlement survey

Villagers, local government officials, Opinions of local government and railway Mar-06 Project region SSDI 110 leaders of railway department authorities about CLR

Villagers, local government officials, Opinions of local government and railway Mar-06 Project region SSDI 60 leaders of railway department authorities about CLR

Villagers, local government officials, Opinions of local government and railway Mar-06 Project region SSDI 200 leaders of railway department authorities about CLR

Villagers, local government officials, Opinions of local government and railway Mar-06 Project region SSDI 80 leaders of railway department authorities about CLR

Survey 319 PPTA Households that may experience Basic household situation, opinion about future July-Aug 06 Project region households Consultant impact demolition, attitude towards CLR (988 people)

PPTA Basic situation of local society and econmies, July-Aug 06 Project region Local government officials 300 Consultant attitude towards CLR

PPTA Villagers, local government officials, July-Aug 06 Project region 82 Attitudes towards CLR, Resettlement issues Consultant leaders of railway department

Points of origin and destination, aim of travel, PPTA reasons for choosing mode of transport, July-Aug 06 Project region Passengers at bus and rail stations 610 Consultant frequency of travel, reasons for paying, occupation, income.

Model of the vehicle, owner of the vehicle, PPTA Drivers of trucks and buses at number of years in use,origin and destination, July-Aug 06 Project region 1032 Consultant highway tolls operating fee, goods transported, number of tonnes, frequancy of trips. Survey of PPTA 1,103 HHs Basic household situation, opinions about July-Aug 06 Project region Households in the PIA Consultant future demolition, attitudes towards CLR (2,616 people) Type and quality of production, raw material PPTA July-Aug 06 Project region Large enterprises along the line 48 consumption, number of employees, total Consultant wages. Current environmental issues, likely PPTA Survey of 156 Aug-06 Project region Environmental Impacts environmental issues as a result of the CLR, Consultant people attitudes towards CLR.

PPTA Survey of 169 Basic household situation, opinions about Jul-07 Project region Households in Changshou Consultant people future demolition, attitudes towards CLR

Source: Compiled by Consultant from data reported by MOR and SSDI.

301. Table 8-2 provides the plan for public consultations and disclosure that should be utilized for each of the districts as they undertake planning for and actual resettlement of affected households, villages, enterprises, factories and other organizations. The proposed plan will greatly facilitate coordination amongst agencies, ensure that public participation is encouraged, and that resettlement proceeds as scheduled in a positive manner.

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Table 8-2: Public Consultation and Disclosure Plan Timing No. of Feedback/ Issues/ Activity Task (Date/ People or Agencies Remarks Concerns Raised Period) Households Stakeholder Mapping of the project Completed 240 official Local government Socioeconomic Before March 2006 when field data collection Identification area and leaders officials, village situation, resettlement began, 240 local government officials and leaders, village framework, demolition potential users were involved in stakeholder representatives policy, channels for meetings. public participation, Does not include subsequent passenger and attitudes towards CLR driver surveys, household surveys, and industry surveys. Socio-Economic Collect socio-economic Completed 319 + 44 SSDI and PPTA Socio-economic info on Surveys: Benefits of ClR: better travel, improved Survey info on AP as well as households Consultant AP as well as AP’s freight, more jobs, better flow of info, new AP’s perception on the in July collected data perception on the enterprise development. project 2006 and project Disadvantages: more pollution, concerns with 2007 relocation, potentially worse living conditions, increase in water use, safety concerns, worried about income loss. . Project Distribution of Sept 2007 1,715 EA and local Based on other consultative meetings and Information information leaflets to relocated authorities surveys, people in the impact area will be fully Dissemination affected persons (AP) households aware of CLR. 84 affected villages Web Disclosure Draft RP posted on ADB Sept 2007 ADB of the Draft RP and/or EA website Consultative Discuss potential Sept-Nov Villagers AP, Socioeconomic Village Leaders: Benefits of CLR: better travel, Meetings with impacts of the project 2007 and leaders representatives of situation, resettlement improved freight, more jobs, better flow of info, AP during in the 84 affected framework, demolition new enterprise development. Detailed affected enterprises and policy, channels for Disadvantages: concerns with pollution, concerns Measurement villages schools, village public participation, with relocation, potentially worse living Survey leaders and attitudes towards CLR conditions, concerns with increased water use, representatives, safety concerns, income loss. local government officials Official Public Publish list of affected Oct 2007 84 villages EA and local Notification lands/sites in a local and all authorities. (No.1) newspaper; Establish villagers eligibility cut-off date

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Timing No. of Feedback/ Issues/ Activity Task (Date/ People or Agencies Remarks Concerns Raised Period) Households Consultative Discuss entitlements, Nov 2007 - Villagers EA, local Meetings on compensation rates, Mar 2008 and leaders authorities, AP Resettlement income restoration, site in the 84 Mitigation selection, grievance affected Measures redress mechanisms villages

Disclosure after Update the RP based on Nov-Dec All affected EA, local Detailed the DMS and disclose to 2007 households authorities Measurement the AP Survey (DMS) Full Disclosure Distribute RP in local Dec 2007 Affected EA, local of the RP to AP language to the AP township authorities offices Submit updated Based on DMS and AP Dec 2007 MOR RP to ADB for consultation, finalize the approval updated RP Web Disclosure Updated RP posted on Dec 2007 ADB of the Updated ADB and/or EA website RP prior to land acquisition Detailed village Discuss with APs in Jan-March 3 or 4 RCSOs, CROs, rehabilitation villages affected by 2008 seriously village leaders and plans railway stations affected representatives construction villages Commence land For priority railway Feb 2008 RCSOs and CROs acquisition and alignment sections (i.e., house demolition key bridges and tunnels) Commence Mar 2008 MOR Project Construction Activities

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302. In the process of the preparation for land acquisition, housing demolition and resettlement, consultations and meetings have been conducted by the Consultant and will be continued during the Project’s implementation. Consultations will be mainly held between:

¾ MOR and the affected provinces, districts, and county governments ¾ The railway construction units and local governments along the rail line ¾ The local RCSOs, local Bureaus of Land and Resources and the affected villages and groups ¾ The local RCSOs, villages/groups and farmer households

303. The content of the consultations will mainly involve (i) the measurement of affected land, houses, and assets, (ii) the compensation standard for land acquisition and building demolition, (iii) the location and the means of new building construction, (iv) the schedule of removal, (v) allocation and utilization of land compensation, (vi) the resettlement methods, and (vii) the temporary impacts and restoration during construction.

304. In the preparation and implementation stages of land acquisition and building demolition for the Project, the local government and the affected people, the railway support institutions at different levels, the railway sector and the local sectors will constantly hold various types of meetings, including:

¾ Villager meetings to be held in the villages or village groups ¾ Consultation meetings with the affected families to be held at the county, the township and the village levels ¾ Meetings of the village cadres and villager representatives to be held at the county and the township levels ¾ Negotiation meetings on the resettlement plans to be held between the RCSOs at the county and the township level ¾ Working level meetings to be often held between the RCSOs and removal groups of the Project construction units ¾ Meetings to be held between the provincial-level RCSO and the county-level RCSOs.

8.2.2 Mass Meetings for Resettlement Planning and Implementation

305. During the period of negotiation on land acquisition, every village or group will hold the following two types of meetings:

¾ Meetings of the villager representatives held by the county or the town land administration departments. The themes of such meetings are to make clear the significance of the Project; the area, location, and the time of land acquisition, the State and provincial laws, policies and regulations about land acquisition and resettlement. Such meetings are often held during the consultation and negotiation on land acquisition for a project.

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¾ Meetings will be held by the village council with all the villagers or the heads of households as participants at least one month prior to decision. The themes of these meetings are to explain State and provincial regulations and policies; the area and amount of land acquisition; the standards of compensation; measures of rebuilding and people resettlement; rehabilitation plans for income restoration; allocation of compensation between the collective and affected households; investment of collective compensation; livelihood training needs and plans; and other issues identified during the consultative process. At each meeting opinions, suggestions, and complaints from the villagers are to be collected. Such meetings are often held during the period of land acquisition, implementation, and signing of contracts on compensation. Any decision related to land adjustment or allocation of collective compensation requires a formal village meeting and two-thirds majority of households. ¾ Formal public hearings will be organized with the AP and other stakeholders at least one month prior to the implementation of the RP.

8.2.3 Publicity and Information Dissemination

306. Publicity and information dissemination on the Project started at the Project preparatory stage. The purposes and significance of the Project, the time and location of the Project construction components, as well as the relevant State policies concerning land acquisition and housing demolition by the governments at the provincial and local levels will be all publicized in official notifications and through various media, such as newspapers, broadcasting, TV, and magazines. These activities are aimed at letting the local residents know and understand the relevant issues concerning land acquisition and building demolition for the Project.

307. Unified land acquisition and housing demolition notices are publicized to all the affected people before implementing the demolition and relocation. The purpose is to make the public become familiar with the issues related to land acquisition and housing demolition, such as time and area of land acquisition, policies of compensation and resettlement, regulations of residence registration, and the prohibition on planting crops and trees or constructing houses after the cut- off date following the DMS (in an attempt to inflate compensation claims).

308. The first Resettlement Information Booklet was distributed to all affected persons and villages through the land acquisition and resettlement offices of local government in November 2006. The updated Booklet will be circulated again in September 2007, and include a detailed description of the CLR Project and the scope, procedures, principles, unit values and standards of compensation, and grievance mechanisms associated with the Project’s land acquisition, building demolition, and resettlement.

309. Meetings among resettlers are another essential means of disseminating information. The purpose of such meetings is to let the participants know first-hand, the implementation of land acquisition, policies and standards of compensation, the strategies of housing rebuilding and resettlement, as well as to collect feedback from the participants.

8.2.4 Public Participation

310. Features of public participation in this Project are:

¾ Pubic participation during the project preparation stage ¾ Public participation during the implementation of land acquisition and resettlement ¾ Public participation during construction ¾ Public participation for monitoring and appraisal after Project completion

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311. The focus of public participation include:

¾ Consultation with local officials, RSCO staff and contractors ¾ Village-level resettlement meetings and decisions ¾ Participation in the DMS of the loss of material possessions and socioeconomic conditions ¾ Negotiations of compensation amounts paid to households ¾ Choice of locations for new buildings ¾ Building of new houses by affected households ¾ Decision-making on investment of collective compensation ¾ Training programs for affected households ¾ Direct or indirect involvement in Project construction (provision of jobs, goods and services) ¾ Community based monitoring of resettlement and construction disturbances.

312. Village group leaders and affected villagers have been involved in investigating and confirming the amount of land to be acquired and the attachments. The participants in these investigations were the household heads, villager representatives, village cadres, the township RCSOs, and the SSDI.

313. After the investigation is completed, the details of the expected loss of buildings, crops, etc. will be verified and confirmed by the affected persons. Compensation agreements will be signed by all the parties concerned with copies retained by the affected villages and households, the RCSOs of local governments, and the railway construction units.

314. The location of the new house site has significant impact on the villager’s future life and on his/her other business activities. The affected villagers will be given sufficient room for adjustment and amelioration of their moving schedule, which will reduce the need for temporary housing. A monitoring mechanism will be established to verify actual performance of this process.

315. Public participation is one of the most important and indispensable steps in the project survey and design. The project survey and design units will go to the construction sites and conduct in-depth investigations. They will hold many types of consultation and negotiation meetings to gather comments and resolve demands on the Project from all affected parties along the proposed alignment. Through many consultations, which culminate in signing contracts with the concerned departments of local governments along the rail line, issues will be resolved before Project construction begins. For such issues as water supply sources, drainage, sites for fill and disposal of spoil, and stone and sand supply, solutions will be specified and carried before or during construction. In addition, the survey and design specialists will discuss issues of district interest with RCSOs and work out plans to handle these issues.

316. Public participation is also an important aspect of Project preparation. During compiling of the Resettlement Plan for the project, in-depth investigations were conducted by the SSDI and the Consultant to identify issues of common concern to the affected people. Questionnaire-based surveys and interviews along the rail line were conducted. People from provinces, districts, counties, townships and affected villages took part in the investigations and actions, so that they understood aspects of the Project. The households interviewed were cooperative and provided detailed data on the size of family, the area of household land, household income and expenditure, housing condition and the number of durable items. Households also indicated their concerns related to land acquisition and housing demolition, and expressed their opinions about resettlement and their attitudes toward the construction of CLR. This process will continue for the preparation of the Updated RP and for resettlement implementation.

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317. The Project construction process is also the process of public participation. During construction, the rural farmers and urban citizens along the alignment will have preference for job opportunities during construction. The materials used for the construction may be procured from local sources, which will have a positive impact on the local people, industries and enterprises.

318. During and after the completion of the Project, the monitoring and the evaluation activities will also need public participation, in order to ensure that entitlements have been received as planned. The surveys and assessment for monitoring and evaluation will need public participation and support. Community based monitoring also encourages to increase their participation, identify problems, and seek solutions at the village level in a timely manner.

8.3 LOCAL INSTITUTIONS OR ORGANIZATIONS

319. Local government units will carry out resettlement functions and distribute compensation to affected villages and persons. Local RSCOs will contact units of ACWF will be contacted to obtain their support for affected women, and especially for those who are single heads of households.

320. Upon the issuance of the Project Feasibility Study approval by the NDRC, the RCSOs will start Preliminary Design and the Land and Resources Bureaus of the 7 counties along the railway line will start the DMS, measuring and recording the amount of land to be acquired, counting affected attachments, measuring area of housing to be demolished, identifying vulnerable households or those at risk., and collecting preferences for new housing sites. These data will be recorded in the household registration cards. There will be three copies of the cards-one for the township office, one for the village office, and one for the affected households. Area of affected housing and the number of attachments of each household will be checked and signed with confirmations by the household head, RCSO representatives, village and township cadres, and personnel from railway construction units. The reason to do so is to ensure that land acquisition is effective, fair, and transparent. For households that are vulnerable and will face hardships during resettlement, the basis for eligibility and their specific entitlements will be included in the subsequent household agreements. The DMS Census will be conducted during August- September 2007 and formal land acquisition procedures will follow subsequently. This RP will be updated based on the DMS results and submitted to ADB for ADB concurrence and website disclosure. The Updated RP will also be publicized to AP.

321. Based on the overall investigations on the amount of land acquisition and housing demolition, the district and county RCSOs will discuss, in detail, implementation plans of displacement and resettlement in each area. Consultations and discussions will also be held with village cadres and representatives regarding detailed implementation plans.

8.4 PROCEDURES FOR REDRESS OF GRIEVANCES

322. During the actual implementation of land acquisition and resettlement, the AP can appeal to resolve any problems or grievances regarding land acquisition, housing demolition and relocation, compensation and resettlement through the following five steps

8.4.1 Appealing to the Land Administration of the County or Township Level

323. According to the management obligations of local government, grievances caused by land acquisition and resettlement should first be addressed by land administration bureaus at the local level. In case the land administration bureau is unable to resolve the grievance, the claimant may appeal to higher levels.

8.4.2 Appealing to the Township, the County, and the Municipal Governments

324. If the grievance can not be resolved by the local land administration bureaus, the claimant may turn to the correspondence and visitation departments of the local governments, which are

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set up by various levels of government organs to handle letters and visits from AP (including grievances in land acquisition and housing demolition). The correspondence and visitation departments function at all levels of government. The claimant may express his/her grievance orally or in written form to the department, which then may coordinate with the departments concerned to have the matter resolved. If the grievance cannot be resolved in this way, the correspondence and visitation department will report the matter to the leaders of local governments.

8.4.3 Appealing to the Owners

325. The Project owner is the ultimate land user. The owner has the responsibility to resolve the problems and issues raised in the course of land acquisition and project construction. The owner of the Project is MOR or the Joint Venture Company between MOR and Chongqing. During the Project’s construction, the CLR construction headquarters will carry out this duty on behalf of the project owner.

8.4.4 Appealing to the External Independent Monitoring Agent

326. The external independent monitoring agent will conduct periodic follow-up investigations on the income and living conditions of the AP periodically during the monitoring period. The monitor will evaluate the resettlement consequences and then will submit its Monitoring and Evaluation Reports to the Project owner, the local institutions conducting land acquisition and demolition, and the ADB. The affected persons, therefore, may express their grievances to the external monitoring institution, which is obligated to listen to, find out, and report the complaints and grievances of the AP.

8.4.5 Legal Action

327. If the grievance of the claimant cannot be resolved through the above procedures, the AP may resort to legal action by bringing the case to a hearing before the court of appropriate jurisdiction.

8.4.6 Informal Appeals

328. In addition to this formal process of grievance redress, there will be frequent opportunities for AP to interact with Project and CLR company officials, RCSOs, contractor representatives, and staff from monitoring agencies through public meetings and hearings, community monitoring, and during their site visits to the affected villages. Village officials will also stay in regular contact with AP to ensure that compensation agreements are satisfactorily implemented. Where non- government organizations (NGOs) have established programs, AP will be able to discuss issues including the implementation of the compensation agreements. These various channels for AP to raise their concerns will be an important component of implementing the resettlement plans and compensation agreements even if they are not part of the formalized grievance redress process. Together they may resolve issues before any of the below institutions involved in redress need to be contacted. In addition, ADB may be directly contacted.

8.4.7 ADB Accountability Mechanism

329. In addition the grievance mechanism described above, APs will also have a formal channel for grievance facilitation available to them to lodge their complaint with the ADB itself. ADB’s accountability mechanism encourages transparency and accountability in it’s operations by providing an avenue for independent investigation underlying the complaints of a group of people adversely affected where projects have failed to meet ADB operational policy. If a group of directly, materially and adversely affected people believe that their experienced or potential harm is due to an ADB Project failing to meet the ADB’s operating policies and procedures, they may lodge this complaint through the ADB Accountability Mechanism.

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330. Complaints must be lodged in writing to the ADB Special Project Facilitator (SPF), either directly by post or email, or through their local country or regional ADB office. The complainant may choose to pursue a consultation phase whereby the SPF undertakes and investigation in the facts of the complaint and attempts through consultations with all stakeholders to find a flexible, informal and cost-effective way to address issues raised by the complainant. Alternatively, or if the complainants are not satisfied with the results of the SPF consultations efforts, the complainants may choose to initiate a compliance review of the project, which, if the complaint is deemed eligible, will result in specific recommendations for resolution of the grievance, which will be considered by the ADB Board and decision made on the implementation of recommendations in order to bring the Project into compliance.

331. Should APs feel they have, or will experience direct material and adverse affects from the Project due to it’s failure to meet it’s operational obligations, APs may seek (or permit representatives on their behalf) to raise the complaint with the ADB directly in Manila, or through the country office in .

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SECTION 9: RESETTLEMENT BUDGET AND IMPLEMENTATION SCHEDULE

9.1 LAND ACQUISITION AND RESETTLEMENT COSTS

332. It is expected that CLR will be owned and operated by a joint venture company (CLRC) to be established with shareholding by MOR (70 percent) and Chongqing Municipality (30 percent). CLRC is therefore the Implementing Agency (IA) and MOR the Executing Agency (EA).

333. Negotiations between the prospective shareholders of CLRC are currently underway, and the company is expected to be established before the end of 2007 as a shareholding enterprise under PRC Law.

334. Funding for land acquisition, relocation and rehabilitation will be negotiated and established between MOR and Chongqing and Hubei before actual implementation of the Project. These negotiations are underway within the general framework established under PRC Law.

335. Annex 1 presents the estimated land acquisition and relocation budget. Table 9-1 presents a summary. The estimated budget is based on SSDI’s estimate for LAR in June 2007 and compensation rates supplied by the counties and districts. Final compensation rates will be included in the updated RP. Management fees are paid to local government agencies involved in land acquisition, resettlement and relocation. The taxes related to land acquisition collected by the State and local governments including cultivated land use tax, farmland reclamation fee, reforestation fee, land recordation stamp duties, etc. are listed in the budget.

336. The State Land Administration Law in Chapter IV, Article 31 requires that where a project acquires basic farmland, an equivalent replacement area must be acquired and brought into production. If such equivalent replacement area cannot be reclaimed, a farmland reclamation fee must be paid to the State. The fees are paid into a fund administered by the provincial Land and Resources Department to upgrade marginal farmland into basic farmland. The investments are made on the basis of the annual Land Use Plan. For this Project, local governments have agreed to ensure that the quantity of basic farmland is maintained in the affected counties. This will be achieved by either avoiding basic farmland or using the fees to reclaim farmland that is currently marginal. This will particularly benefit people in poor villages.

337. Table 9.1 includes training, monitoring costs and price contingency. Table 9.2 provides a year-by-year estimate for the LAR activities at 541.35 million CY, or 2.17 million CY per route km.

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Table 9-1: Total Budget for Land Acquisition and Resettlement

Total Compensation Item (CNY million) Compensation for Land Acquisition 229.74 Compensation for Standing Crops 17.93 Compensation for Temporary Land Acquisition 19.97 Cost for Building Relocation 137.22 Allowances and Additional Subsidies 16.38 Relocation of Infrastructure and Utilities 16.07 Administrative Fee 26.25 Farmland Reclamation Fee 34.50 Taxes and Other Fees 5.40 Sub-total 503.46 External Monitoring Cost 1.62 Internal Monitoring Cost 0.61 Training 1.35 Physical Contingency (5.6%) 28.21 Price Contingency 6.11 Total 541.35 Source: Annex 1.

338. During project preparation, the proposed compensation standards have been provided and discussed with affected villages along the alignment. In late 2007 specific policies and compensation standards will be distributed to all AP and villages in the form of an information booklet. Before commencement of land acquisition and resettlement, a census form will specifically list all assets of each AP and the compensation established for each asset. MOR (or the joint venture between MOR and Chongqing, if established for CLR) is responsible under the law to fully compensate all AP for their assets. The annual estimated cost of land acquisition and resettlement shown in Table 9-2 provides a basis for estimating these costs for use in the financial and economic evaluation of the Project. Costs for Orchard and Scattered Trees are included under Compensation for Standing Crops.

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Table 9-2: Estimated Cost for Land Acquisition and Resettlement by Year (CNY million) Item 2007 2008 2009 2010 2011 Total Compensation for Land Acquisition 183.79 45.95 229.74 Compensation for Standing Crops 14.34 3.59 17.93 Compensation for Temporary Land 15.98 3.99 19.97 Acquisition

Cost for Building Relocation 109.78 27.44 137.22

Allowances and Additional Subsidies 13.10 3.28 16.38 Relocation of Infrastructure and 12.86 3.21 16.07 Utilities Administrative Fee 21.00 5.25 26.25

Farmland Reclamation Fee 27.60 6.90 34.50

Taxes and Other Fees 4.32 1.08 0.00 0.00 0.00 5.40 Sub-total 402.77 100.69 0.00 0.00 0.00 503.46 External Monitoring Cost 0.32 0.32 0.32 0.32 0.32 1.62 Internal Monitoring Cost 0.10 0.10 0.10 0.00 0.31 0.61 Training 1.35 0.00 0.00 0.00 0.00 1.35 Physical Contingency 22.80 5.70 0.00 0.00 0.00 28.21 Price Contingency 0.00 6.11 0.00 0.00 0.00 6.11 Total 427.34 112.92 0.42 0.32 0.63 541.35 Source: Annex 1. Physical contingency at 5.6% and price contingency at 3 percent per year.

339. In the updated RP, detailed compensation cost tables will be prepared to show charges for site development, enterprise relocation, special measures for vulnerable groups, livelihood training, staff training, internal monitoring and supervision, external monitoring and evaluation, taxes and other fees, and physical and price contingencies.

9.2 ANNUAL BUDGET

340. The annual budget of the cost of land acquisition and relocation shown in Table 9-2 are based on the following key assumptions:

¾ 80 percent of compensation for land acquisition, standing crops, and temporary land acquisition will be completed in the first year, and the balance in the second year. ¾ 80 percent of replacement of buildings and structures will occur in year 1 and 20 percent in year 2. ¾ 50 percent of relocation of roads, communication lines and power lines will occur in years 1 and 2. ¾ 5 percent administration fee is included in the above costs. The physical contingency is assumed at 5.6 percent of base cost and the price contingency assumes an annual escalation of 3 percent, and are based on the economic analysis.

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¾ The internal and external monitoring cost for five years during the period of resettlement and the first two years after resettlement is completed is included in the budget. The Consultant estimates this cost at CY 1,512 per kilometer per year during the 2008-2012 period, totaling CY 1.96 million (see Tables 10-2 and 10-4 for a detailed breakdown of internal and external monitoring costs, respectively).

9.3 SOURCES OF FUNDING

341. The counties and districts are responsible for LAR administration and the funds for LAR will be provided by the new railway company.

342. Funds for land acquisition, housing demolition, and resettlement will be disbursed through the local resettlement offices. The specific amounts will be decided in accordance with the amount of land acquisition, housing demolition, and work progress in each district. The funds will be paid to local governments and disbursed to the AP prior to land acquisition and housing demolition.

343. The affected families (including people without legal title) will get compensation for their housing, attached trees, other improvements, and their loss of standing crops. Other affected parties (businesses, utility owners, etc) will receive similar compensation for their lost assets. The affected villages will get compensation for affected land and attachments owned by them. The village collectives will decide on the distribution of proceeds in accordance with the State Council’s Document No. 28, the Ministry of Land Administration’s Directory of Instructions on Facilitating Compensation on Land Acquisition, and provincial regulations.

9.4 TIME SCHEDULE 344. The draft Feasibility Study was completed by SSDI in March 2006. The revised Feasibility Study for the Project has been completed by SSDI in June 2007. The resettlement census is expected to be completed in late 2007 and the updated RP will then be submitted to ADB for concurrence. 345. The construction period is planned for approximately 4 years with preliminary site preparations by the end of 2007, commencement of LAR and civil works during the first quarter of 2008, and projected completion of construction by the end of 2010. Testing will be held during the last 2 months of 2010, and trial operations and debugging will occur during 2011. Commercial operations are planned to commence in 2012. If the commencement of main physical works for the Project changes, the anticipated completion time will be adjusted accordingly. 346. The preparatory stage of railway construction, including LAR, is usually four to six months, including roads to support construction, connections of electric power, and communication lines, building and getting workshops and yards ready, removal of the infrastructure on the land acquired, and getting permissions for utilities. 347. The land acquisition and resettlement implementation timetable is in accordance with the civil works and construction schedule. Land acquisition should be done before civil works start and there should be three to five months for the removal and reconstruction of new housing. 348. Main activities on construction of CLR and resettlement are listed in Table 9-3, and Figure 9-1 shows the activities in relation to the Project schedule. Not shown in the Table and Figure, the Feasibility Study will be submitted in June 2007, and approval is expected in August 2007. The EIA and Land Use Plans will also be submitted in July, with approval anticipated in August 2007. As shown in Table 9.3, detailed resettlement planning will commence in August 2007.

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Table 9-3: Resettlement Schedule Implementation Activity Responsible Unit Schedule Preparation and Preliminary Design SSDI 2005~2006 of the Project Identification of land acquisition Local land administration office, local support 2006.6~2007.12 (surveying and investigation) organization, township, village, railway construction unit Prepare land use plans and submit to SSDI and Local land administration office, with Ministry of Land & Resources for participation of village leaders and affected households 2007.8~2007.9 approval and other entities. Detailed Resettlement Planning SSDI, RSCOs, local officials. 2007.10-2009.4 Census of housing of the affected Local land administration office, local support families (including belongings), organization, township, village, affected household, 2007.10~2007.12 resettlement census railway construction unit Organizing consultation and Local land administration office, local support Ongoing since negotiation meetings and resettlers' organization, township, village, affected household, 2005 meetings railway construction unit, SSDI and Consultants Local land administration office, local support Updated resettlement plan and organization, township, village, affected household, 2007.10~2007.12 disclosure to the AP railway construction unit Preparation of detailed compensation and resettlement plan (including Local land administration office, local support identification of new housing site), organization, township, village, affected household, 2007.12~2008.10 disclose to the AP, and conduct railway construction unit, MOR, SSDI Project Staff training Execution of agreements for land Government support organization, local land acquisition and demolition with administration office, township, affected village and 2008.1~2008.9 villages and households affected household Implementation of compensation and Railway construction unit, government support 2008.1~2008.10 payment organization, affected village and affected household Building houses Affected household self-rebuilding 2008.1~2009.1 Affected household, village, township, railway Removal and demolition 2008.4~2009.3 construction unit Civil works and construction Railway construction unit 2008.3~2010.12 Source: SSDI

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Figure 9-1: Project Implementation Schedule 2007 2008 2009 2010 2011 2012 2013 Item J FMAMJJ ASONDJ FMAMJJ ASONDJ FMAMJJ ASONDJ FMAMJJ ASONDJ FMAMJJ ASONDJ FMAMJJ ASONDJ FMAMJJASOND 1 Preliminary & Detailed Design, Engineering, and Documentation

2 Prequalification and Tendering

3 Land Acquisition, Removal, and Staking Resettlement/Relocation 3A Resettlement Planning and Preparation 3B Disclosure of RP and RIB DMS & External Monitor Contracted 3C Implementation of RP Updated RP to ADB, Rates Established 4 Subgrade (Earthwork)

5 Bridges and Culverts

6 Tunnels

7 First Ballast

8 Track Laying

9 Second Ballast

10 Environmental Protection Works

11 Electrification and Power Supply

12 Signaling and Communications

13 Operational Buildings and Associated Works

14 Terminal Operating Facilities

15 Operating Equipment

16 Safety Monitoring System

17 Testing

18 Trial Operations

19 Commencement of Commercial Operations In 2014 Source: Consultant

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SECTION 10: MONITORING AND EVALUATION

10.1 OBJECTIVES AND SCOPE

349. Monitoring of resettlement refers to the process of gathering information and providing data concerning resettlement activities and consequences before, during, and after the course of those activities. Evaluation means the process of analysis and appraisal of data gathered in monitoring with reference to the requirements of PRC Law and the ADB, the standards established in the RP, the condition of AP before removal, and with the conditions of the local population not displaced. Any large project will face problems in its execution. Real-time monitoring will help to identify problems and expedite remedies.

350. The first purpose of monitoring and evaluation is to ensure timely execution of the Project as designed and scheduled. The second purpose is to discover problems and promptly resolve them. The third purpose is to evaluate and provide feedback to benefit design, execution and management of future projects.

351. Evaluation of resettlement is expected to examine and decide whether the displaced population is appropriately resettled from a sociological and economic perspective, and whether the income and standard of living of AP are at least as high as before resettlement. The conclusions drawn from monitoring and evaluation are supposed to provide feedback to the implementation and management of the Project so that problems, if any, can be redressed promptly and appropriate alterations made to implementation plans.

352. Monitoring and evaluation of resettlement include internal and external monitoring and evaluation. These will be discussed separately in the following subsections.

10.2 BASELINE DATA

353. Prior to implementation of monitoring on resettlement, it is necessary to establish a RP monitoring sample database representing at least 20 percent of the seriously affected households, 20 percent of seriously affected enterprises, and no less than 5 percent of APs overall. Drawn from the Resettlement Census, each sample in the monitoring baseline will have a record consisting of the following information:

¾ Members of the affected household ¾ Education level ¾ Infrastructure facility services, such as health, safety, water, electricity, road, telephone and communication, etc. ¾ Identification of the head of household as farmer or non-farmer ¾ Total income of the family and income source ¾ Number of members going outside their local area for jobs ¾ Cultivated land contracted to the family ¾ Agricultural production and value ¾ Major expenses of the family ¾ Quantity of productive assets and durable consumer goods of the household ¾ Cultivated land affected ¾ House affected ¾ Other affected attached values/assets or impacts ¾ Compensation quantity and category

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¾ Location of new house to be built and foundation area ¾ Measure(s) of economic recovery ¾ Reallocated cultivated land and category ¾ Other resettlement measures

354. In addition, the survey conducted in all affected villages and urban neighborhoods for this plan should be repeated annually for two years after resettlement so that conditions after resettlement are gauged to conditions prior to resettlement.

10.3 INTERNAL MONITORING OF RESETTLEMENT TARGETS

10.3.1 Objectives and Institutional Arrangements

355. The role of internal monitoring and progress reporting is to ensure that resettlement institutions are functioning well during the course of Project implementation. The main objectives are to insure that all of the resettlement work is done on time, and according to the schedule set in the RP, as well as to guarantee that the AP have their rights and interests well protected, so that the civil engineering construction can be completed on time.

356. Internal progress monitoring will be carried out by Construction Coordination Department of Land Acquisition and Resettlement Group of CLR under the Leading Group (or the joint venture company if it is formed), which will detail the internal monitoring framework at each railway management organization. The Project Construction Headquarters will submit information quarterly to MOR for inclusion in the quarterly project implementation report to ADB.

357. The resettlement data flow is from the township-level resettlement office and civil works contractors to the district/county resettlement office, then to the CLR Project Construction Headquarters. The township-level resettlement office will fill out the forms regarding the resettlement progress on a monthly basis and submit them to the county/district resettlement office and then to the CLR Project Construction Headquarters so that information can be aggregated and analyzed. The district resettlement office will check the actual progress on a weekly basis. Data concerning Project construction will be compared with that presented in the tables filed by the county office.

10.3.2 Steps of Internal Monitoring

358. As part of the preparation for and internal monitoring of the resettlement plan, the following steps are envisioned:

359. The MOR-Chongqing agreement to be executed by the Minister of MOR and Governor of Chongqing is a document with legal authority since the agreement will be worked out in accordance with Land Administration Laws of PRC and Implementation Methods of the Land Administration Law formulated by Chongqing.

360. This RP formulated with coordination by MOR and participation of the local governments along the line, includes the actions and guiding principles that are commonly affirmed and accepted by all parties and, therefore, must be adhered to without any reservation during Project implementation.

361. The MOR/Project coordinator will check and supervise on the spot so as to find out and resolve any difficulties and problems in implementation. The MOR will diligently execute Project owner’s duties and obligations, and keep close contact and good cooperation with the provincial RCSOs. CLR Leading Preparatory Group (or its successor, CLR Joint Venture Company) will compile internal monitoring information quarterly.

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362. The CLR Leading Preparatory Group (or the CLR Joint Venture Company) will be in charge of handling all affairs in land acquisition, housing demolition, and population resettlement. In addition to handling complaints of the localities, the Group is obliged to supervise local governments in using compensations appropriately.

363. Under the supervision and only with the approval of the Leading Group (or the JVC), the resettlement teams from railway construction companies are in charge of land acquisition, housing demolition, and population resettlement within their sections and will report their work to CLR Leading Preparatory Leading Group. They will closely cooperate with rural local government units at the township level and are obliged to handle complaints and grievances of the local people.

364. Implementation progress will be reported in written form, to MOR once every three months and incorporated into the quarterly progress report to ADB.

10.3.3 Scope of Internal Monitoring

365. Listed in Table 10-1 are internal monitoring indicators incorporated in the RP. The budget is shown in Table 10-2. With coordination of the CLR Leading Preparatory Group (or the CLR Joint Venture Company), a quarterly report on construction progress, funds transfer and disbursement and conditions of resettlement progress will be submitted to FCTIC of MOR, and a summary will be forwarded to ADB. The CLR Leading Preparatory Group (or the CLR Joint Venture Company) will also prepare a resettlement completion report after the resettlement activities are essentially finished. This report will focus on physical and financial aspects of land acquisition, compensation, demolition, relocation, reconstruction and livelihood rehabilitation. This report will be submitted to local governments, FCTIC and ADB. .

366. The Resettlement DMS will be entered into a database that facilitates updating actual progress for the subsequent monitoring reports.

367. A functional and accessible computerized database should enable the collection, recording, storage, processing and transmission of data. The computerized database will include following information:

¾ Every step of the implementation of land acquisition and resettlement ¾ All policies and documents related to the resettlement plan ¾ Basic information on AP households ¾ Restoration of living standards for AP households ¾ Restoration of livelihoods for AP households Levels of AP’s satisfaction ¾ Effectiveness of resettlement planning ¾ Social and economic impacts to every area affected by CLR ¾ Effectiveness of planning and management of EA, MOR and local governments at various levels

368. To ensure the effectiveness of the database, it will be updated according to a fixed time schedule (for example, quarterly). The updated database will be utilized to provide regular reports to the various organizations involved in the management, implementation and monitoring of the Project. Importantly, the computerized database and the regular reports provided by it will provide a basis to systematically analyze “lessons learned” during the Project’s implementation so that necessary corrections can be made in a timely and functional manner.

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Table 10-1: Outline for Resettlement Completion Report Report Scope of Report Content/Questions to Be Addressed Section

Physical - Quantity of land acquired (see Table 10.5) Impacts and - Quantity of housing demolition (see Table 10.6) Comparison - Impacts of resettlement (see Table 10.8) with Actual

- Have all land acquisition and resettlement staff been appointed and mobilized for the field and office work on time? - Have capability building and training activities been completed on schedule? - Are resettlement implementation activities being achieved according to the agreed Cost Progress plan? & Comensation - Are funds for resettlement being allocated to the resettlement agencies on time? Time frame - Have resettlement offices received the scheduled funds? - Have funds been disbursed to the affected villages and families according to the RP? - Has the social preparation phase (e.g., SDAP, if needed) taken place as scheduled? - Has all land been acquired in time for Project implementation? - Have all AP received the complete entitlements according to numbers and categories of loss set out in the entitlements matrix? - Have AP received complete payments on time? - Have AP losing temporary land been compensated? - Have all AP received the agreed transport costs, relocation costs, income substitution support and any resettlement allowances, according to schedule? - Have all replacement land plots or contracts been provided? Was the land developed as specified? - How many AP have received housing as per relocation options in the RP? Delivery of AP - Does house quality meet the standards agreed? Entitlements - Have relocation sites been selected and developed as per agreed standards? - Are the AP occupying the new houses? - Are assistance measures being implemented as planned for host communities? - Is restoration proceeding for social infrastructure and services? - Are AP able to access schools, health services, cultural sites and activities? - Are income and livelihood restoration activities being implemented as set out in the income restoration plan? - Have the affected businesses received entitlements including transfer and payments for net losses resulting from lost business and stoppage of production?

- Have consultations taken place as scheduled? - Have resettlement booklets and announcement been delivered? Consultation, - How many AP know their entitlements? How many know if they have been received? Grievance and - Have any AP used the grievance redress procedures? What were the outcomes? Special Issues - Have conflicts been resolved? - Was the social preparation phase implemented? - What changes have occurred in patterns of occupation, production, and resource use compared to the pre-project situation? - What changes have occurred in income and expenditure patterns compared to the pre-project situation? What have been the changes in cost of living compared to the Benefit pre-project situation? Monitoring - Have AP’ incomes kept pace with these changes? - What changes have taken place in key social and cultural parameters relating to living standards? - What changes have occurred for vulnerable groups?

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Table 10-2: Estimated Cost of Internal Monitoring by Year (CNY) Year 2008 2009 2010 2011 2012 Unit Base Line Monitoring Monitoring Resettlement Total Cost Cost Survey Reports Quantity Unit Reports (semi- Completion (RMB and (semi- annually) Report yuan) Report annually) Remuneration: Task 1: Prepare and Pilot Test Survey Forms: Resettlement Person- 2 3,000 6,000 6,000 Experts Month Data Entry Person- 2 1,500 3,000 3,000 Clerk/Secretary Month Task 2: Surveys and Site Visits: Resettlement Person- 1 36,000 36,000 36,000 36,000 108,000 Experts Year Data Entry Person- 0.5 18,000 9,000 9,000 9,000 27,000 Clerk/Secretary Year Task 3: Preparation of Reports: Resettlement Person- 1 36,000 36,000 36,000 36,000 108,000 Experts Year Data Entry Person- 0.5 18,000 9,000 9,000 9,000 27,000 Clerk/Secretary Year Subtotal Remuneration 9,000 90,000 90,000 90,000 279,000 Miscellaneous Lump Estimate 2,000 10,000 10,000 10,000 32,000 Costs Sum Total Cost 11,000 100,000 100,000 100,000 0 311,000 Source: Consultant estimates.

10.4 EXTERNAL MONITORING AND EVALUATION

10.4.1 External Monitoring

369. External monitoring and evaluation must be performed by an independent social agency to conduct follow-up investigations of the implementation of land acquisition, resettlement and rehabilitation, and evaluate the whole process from an impartial and comprehensive point of view. One task of external monitoring is to provide information and foresight, based on follow-up investigations and data collection, to the Project resettlement office and the Project administration institution so that any problems concerning population displacement and resettlement can be promptly solved. The second task is to evaluate whether resettlement has been completed successfully and in compliance with ADB safeguard policies, as set out in this RP.

370. The selected monitoring agency will prepare external monitoring and evaluation reports and submit them to CLR Leading Preparatory Group (or the CLR Joint Venture Company) and the FCTIC of MOR, and ADB.

10.4.2 Evaluation Plan

371. External monitoring for the Project will include the following four steps:

¾ The preparation stage will identify the target persons and scope of investigation and draw up the outlines and forms to be used during investigation. ¾ The investigation stage will involve interviewing the target persons at all levels one- by-one, conducting field investigations, and gathering information and background data. ¾ A baseline survey will be conducted to verify results of the Resettlement Census and DMS, and to provide a database for subsequent monitoring (see Section 10.5). ¾ The information feedback stage will feed the information collected in the investigation stage back to the MOR, and discuss how to follow up and resolve problems.

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¾ The report preparation stage will sort, conduct diagnostic analysis and synthesis of the information collected, generalize conclusions, and draw up the monitoring and evaluation reports. 372. The basis of external independent monitoring and evaluation are the following:

¾ The procedures and guidelines of ADB as set out in the Handbook on Resettlement (Manila, 1998) ¾ This RP ¾ The general principle that AP’s livelihood should be better or at least remain at the present level after completion of the Project 10.4.3 Methods and Scope

373. Research methods of external monitoring and evaluation for the Project involve sample surveys, case studies, investigation of key problems, group interviews of key informants, follow- up visits, field observations, and analysis of correlative data banks collected by local government offices and MOR units.

374. The external monitor will conduct its own baseline survey and be responsible for ensuring the accuracy and validity of the baseline census and survey data collected as part of internal monitoring. The monitor will evaluate and confirm annual tracking re-survey data of the village and household sample, and analyze the data collected during project construction. The monitor will also conduct investigations of resettlement implementation at six-month intervals, and will make recommendations and submit a report to local governments, FCTIC and ADB.

375. At least for two years after the completion of LAR, the external monitor will be responsible for re-surveying the baseline households and villages in order to evaluate the success of the CLR resettlement program. The annual evaluation reports will be submitted to the local governments, FCTIC and ADB. Listed in Table 10-3 are external monitoring indicators, which will be followed, in external monitoring of the Project.

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Table 10-3: External Monitoring Indicators Monitoring Basis of Indicators indicators

- Location - Composition and structure: ages, educational and skill levels - Gender of household head - Ethnic group - Access to health, education, utilities and other social services Basic - Housing type Information - Land and other resource ownership and utilization patterns on AP - Occupations and employment patterns Households - Income sources and levels - Agricultural production data (for rural households) - Participation in neighborhood or community groups - Access to cultural sites and events - Value of all asset forming entitlements and resettlement entitlements

- Were house compensations made free of depreciation, fees or transfer costs to the AP? Restoration - Have the AP adopted the housing options developed? of Living - Have perceptions of community been changed? Standards - Have the AP achieved replacement of key social and cultural elements?

- Were compensation payments free of deduction for depreciation, fees or transfer costs to the AP? - Were compensation payments sufficient to replace lost assets? Restoration - Was sufficient replacement land available of suitable standard? of - Did transfer and relocation payments cover these costs? Livelihood - Did income substitution allow for re-establishment of enterprises and production? - Have enterprises affected received sufficient assistance to re-establish themselves? - Have vulnerable groups been provided proper means of earning income? - Do jobs provided restore pre-project income levels and living standards?

- How much do the AP know about resettlement, procedures and entitlements? - Do they know if these have been met? Levels of AP - How do the AP assess the extent to which their own living standards and livelihoods Satisfaction have been restored? - How much do the AP know about grievance and conflict resolution procedures?

- Were the AP and their assets correctly enumerated? Effectiveness - Were any land speculators assisted? of - Was the time frame and budget sufficient to meet objectives? Resettlement - Were entitlements appropriate (wide or narrow)? Planning - Were vulnerable groups identified and assisted? - How did resettlement implementers deal with unforeseen problems? Other - Were there unintended environmental impacts? Impacts - Were there unintended impacts on employment or incomes?

10.4.4 TOR and Estimated Budget

376. According to the requirements stipulated in the “The Decision of Investment System Reform” issued by the China State Council in 2004, all construction projects will be properly supervised through the entire construction process. It is also a requirement of ADB that loan projects that result in land acquisition and resettlement be properly monitored and evaluated. In order for the implementation of the land acquisition and resettlement program of the CLR Project

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to comply with the provisions of the RP, monitoring of implementation, both “internal” and “external”, will be carried out during and after the implementation of the Project.

377. Annex 5 includes the Terms of Reference for external monitoring consultancy services. An independent monitoring agency (Monitor) will be engaged for the external supervision, monitoring and evaluation. The Consultant will be a PRC entity with experience on ADB or World Bank projects dealing with resettlement issues.

378. Monitoring and evaluation will include, but not be limited to:

¾ Monitoring the progress and effectiveness of RP implementation ¾ Evaluation of income restoration and post-resettlement conditions of the AP and host communities 379. For the Monitor, the objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the AP’s situation and the resettlement process:

¾ Economic situation prior to and after displacement of land or housing ¾ Timely disbursement of funds ¾ Environmental conditions ¾ Social adaptability after resettlement ¾ Rehabilitation of APs, especially vulnerable groups ¾ Condition and quality of land temporarily acquired when it is returned to the original land users ¾ Measures taken by the village committees to restore affected livelihoods ¾ Living conditions and economic status of the AP following resettlement in comparison to the non-affected household in the Project area 380. Monitoring and evaluation will include (i) the establishment of a socio-economic baseline of the AP, prior to land acquisition or physical relocation, (ii) the semi-annual monitoring of their relocation or adjustment during Project implementation, and (iii) annual evaluation of APs situation for a period of at least two years afterwards, or until resettlement is deemed successful.

381. Qualitative and quantitative methods will be used to evaluate the standard of living of the AP. Investigations will include interviews with local officials, village leaders, and a survey of 20 percent of seriously affected households and enterprises. Monitoring will also be done for seriously affected villages. Focus group discussions will be conducted to address issues related to women, poor, other vulnerable groups, and unemployed workers.

¾ In addition to the indicators outlined in Table 10.3, monitoring and evaluation will provide information on the utilization and adequacy of resettlement funds. The respective local Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the external monitoring agency. 382. During external monitoring, some special attention/provisions specified in the RP will be paid to women, the poor, ethnic minorities and other vulnerable groups. These include:

¾ The status and function of women: Closely monitor any change in women’s status, function and situation. At least 40 percent of AP surveyed will be women. The monitoring and evaluating unit will also provide recommendations and assistance to the EA in respect of women’s issues.

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¾ Care and attention to ethnic minorities and vulnerable groups, especially those that will face hardships due to resettlement: Closely monitor living conditions of elderly, the handicapped, the poor, and other vulnerable groups after resettlement, to ensure that no hardship is experienced. ¾ Monitoring and evaluating will provide information on utilization and adequacy of resettlement funds. The respective local Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the external monitoring agency. 383. A monitoring report will include:

¾ Conclusions of investigations and evaluations ¾ Major existing and potential problems ¾ Recommended mitigation or prevention measures which will be incorporated into a revised plan if necessary ¾ Assessment of previous follow-up actions 384. The Monitor will provide the EA, MOR, Chongqing and Hubei local governments, respective resettlement implementation offices, and ADB with monitoring reports every six months (semi-annually) during the implementation of resettlement. Then, resettlement will be evaluated for two years after the completion of LAR. The aim is to follow up and evaluate the resettlement in the long term that includes the implementation of resettlement, changes in the living standards and life styles of the AP, and the restoration and reconstruction of the infrastructure in the affected area. The final monitoring and completion report will constitute the external completion report on resettlement, which will then be provided to the EA, MOR, Chongqing, and Hubei local governments, respective resettlement implementation offices, and ADB.

385. All reports will be available in English and Chinese. EA and MOR will ensure that information on the progress and status on all aspects of land acquisition and resettlement activities will be provided to the external monitor for verifying the progress reports.

386. Table 10-4 is the estimated budget for external monitoring, which includes the baseline survey in 2007, semi-annual investigations and monitoring reports in 2008/09. and two tracer surveys and evaluation reports in 2010/11. The final evaluation report should confirm successful completion of resettlement in accordance with the RP, otherwise, subsequent evaluation may be warranted to address remaining problems. The terms of reference for the external monitor are included in Annex 5.

10.5 MONITORING REPORT FORMATS

10.5.1 Internal Monitoring

387. During the implementation of land acquisition and resettlement and economic recovery, the local resettlement office will report the results of internal monitoring every 3 months. The CLR Leading Preparatory Group will quarterly submit information on land acquisition, housing demolition and resettlement to FCTIC for inclusion in the quarterly project implementation report to ADB by FCTIC. The internal monitoring report will include the information depicted in Tables 10-5 to 10-7, plus any issues or problems and proposed solutions, including follow up on previously identified problems and actions. FCTIC will also submit a resettlement completion report to the ADB.

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Table 10-4: Estimated Cost of External Monitoring Surveys by Year (CNY) Year 2008 2009 2010 2011 2012 Unit Base Line Monitoring Monitoring Annual Annual Total Cost Cost Survey Quantity Unit Reports (semi- Reports Evaluation Evaluation (RMB and annual) (semi-annual) Report Report yuan) Report Remuneration: Task 1: Prepare and Pilot Test Survey Forms: Senior Person- Resettlement 1 10,000 10,000 10,000 Month Expert Person- Mid-Level Expert 1.5 7,500 11,250 11,250 Month Person- Survey Takers 3.5 5,000 17,500 17,500 Month Data Entry Person- 2 3,000 6,000 6,000 Clerk/Secretary Month Task 2: Surveys and Site Visits: Senior Person- Resettlement 2.5 10,000 25,000 25,000 25,000 25,000 25,000 125,000 Month Expert Person- Mid-Level Expert 7 7,500 52,500 52,500 52,500 52,500 52,500 262,500 Month Person- Survey Takers 10 5,000 50,000 50,000 50,000 50,000 50,000 250,000 Month Data Entry Person- 5 3,000 15,000 15,000 15,000 15,000 15,000 75,000 Clerk/Secretary Month Task 3: Preparation of Reports: Senior Person- Resettlement 2.5 10,000 25,000 25,000 25,000 25,000 25,000 125,000 Month Expert Person- Mid-Level Expert 3 7,500 22,500 22,500 22,500 22,500 22,500 112,500 Month Person- Survey Takers 2 5,000 10,000 10,000 10,000 10,000 10,000 50,000 Month Data Entry Person- 3 3,000 9,000 9,000 9,000 9,000 9,000 45,000 Clerk/Secretary Month Subtotal Remuneration 253,750 209,000 209,000 209,000 209,000 1,089,750

Other Direct Total Costs: 2007 2008 2009 2010 2011 Travel Tickets Lump 1 70,000 70,000 70,000 70,000 70,000 70,000 350,000 and Per Diem Sum Lump Processing 1 15,000 15,000 15,000 15,000 15,000 15,000 75,000 Sum Lump Translation 1 15,000 15,000 15,000 15,000 15,000 15,000 75,000 Sum Lump Misc. Expenses 1 15,000 15,000 15,000 15,000 15,000 15,000 75,000 Sum Subtotal Other Costs 115,000 115,000 115,000 115,000 115,000 575,000

Total Cost 368,750 324,000 324,000 324,000 324,000 1,664,750 Source: Consultant estimates. Table 10-5: Quantity of Land Acquired and Temporary Land to be Used Total Land Acquired (mu) County and Industrial Other Temporary Affected Items Irrigat Other town/ Dry and Non- Land Villages ed Orchard Cultivated Total Townshi land Mining cultivated Land Land p Land Land Element A Element B Element C Element D Total

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Table 10-6: Quantity of Housing Demolition

2 Industrial Buildings Family Buildings to be Removed (m ) to be Removed (m2) County Brick Affected Items Earth No. of Building and town/ Brick with Simple No. of Villages Wood Total Relocated Floor Township Concrete Tile Structure Industries Structure Families Space Roof Element

A Element

B Element

C Element

D Total

Table 10-7: Compensation for Resettlement Land Temporary Family Industry Other Affected County and Items Acquired Use Land Removal Relocation Costs Villages town/Township Element A

Element B

Element C

Element D

Total Note: This table should be made for comparison between the plan and the actual conditions.

10.5.2 External Monitoring

388. An external monitoring report will include the information depicted in Tables 10-8 to 10-10 that are derived from the internal monitoring reports, and specifically address the issues outlined below.

¾ The first issue, the scope of resettlement, is shown in Table 10-8. Based on such data, further explanation should be made regarding why (for some components), the scope of resettlement has been reduced, while for some other components, why the scope of resettlement has increased. This table can also be used to compare the actual implementation progress versus the total planned target for resettlement. ¾ The second issue, the compensation rates for resettlement, is shown in Tables 10- 9 and 10-10. By visiting selected villages and interviewing different AP, the monitoring agency should compare compensation rates for various items, including different structures, attached properties, and different types of land. Such comparisons should give detailed explanations if there are major gaps between the compensation in the RP and actual compensation.

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Table 10-8: Impacts of Resettlement Resettlement Population Land Acquired Building Relocated Element and Number of HH Plan Actual Plan Actual Plan Actual Element A Element B Element C Element D Total

Table 10-9: Compensation Rates for Land Acquired Irrigated Dry Land Forest Land Orchard Element Plan Actual Plan Actual Plan Actual Plan Actual Element A Element B Element C Element D Total

Table 10-10: Compensation for Relocated Buildings Brick Concrete Brick Wood Earth Wood Compensation Element Plan Actual Plan Actual Plan Actual Plan Actual Element A Element B Element C Element D Total

¾ The third issue is to determine whether proposed rehabilitation measures in the RP have been implemented, which include both economic rehabilitation and housing reconstruction. For the housing reconstruction, the report should focus on whether all the relocated households have been allocated new housing plots free of charge; whether they received all their housing compensation, including compensation for other properties, moving and transfer assistance, etc.; and whether the total compensation was sufficient to build their houses. A comparison of housing conditions between old and new houses should be conducted among selected APs. The household survey will focus on whether they received all the agreed compensation or rehabilitation, such as self-employment funds, whether the village group has redistributed farmland, etc.; and what their current income level is, and whether this is higher than it used to be. On the question of income change, it is better to select a set of sample households before resettlement commencement to establish a baseline, and continue monitoring their income changes during the implementation process through regular survey updates. ¾ The fourth issue is to assess the adequacy of the implementation arrangements to determine whether sufficient support has been provided to APs by the implementing and associated agencies. This includes whether the grievance redress procedures have been followed and successfully implemented. ¾ The fifth issue is to evaluate and ensure that APs are not “worse off” and that their incomes have been successfully restored. This will require household surveys.

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ANNEX 1 LAND ACQUISTION AND RESETTLEMENT BUDGET

Table A.1: Land Acquisition and Resettlement Budget for Yubei District Total Amount of Total Land Compensation Item Compensation (mu) Rate (CY/mu) (CY million) Compensation for Land Acquisition: Paddy Land 171.00 26,500.00 4.53 Vegetable Plots 59.40 26,500.00 1.57 Woodland 736.00 23,000.00 16.93 Dry Land 838.30 23,000.00 19.28 Sub-total 1,804.70 42.31 Compensation for Standing Crops: Dry Land 838.30 1,500.00 1.26 Orchard Trees (number) 2,500.00 25.00 0.06 Paddy Land 171.00 2,500.00 0.43 Vegetable Plots 59.40 2,500.00 0.15 Woodland 513.50 1,500.00 0.77 Scattered Trees (number) 2,200.00 15.00 0.03 Sub-total 6,282.20 2.70 Compensation for Temporary Land Acquisition:

Dry Land (total rate for 3 years) 346.20 3,000.00 1.04 Waste Land (total rate for 3 years) 298.80 1,500.00 0.45 Sub-total 645.00 1.49 Cost for Building Relocation (sq.m): House with Tile Roof 24,768.00 300.00 7.43 Brick/Wood Building 19,587.00 240.00 4.70 Brick/Earth Building 8,836.00 200.00 1.77 House Site Preparation Cost 50,000.00 50.00 2.50 Factory Building 12,100.00 150.00 1.82 School/Clinic/Admin Building 16,100.00 240.00 3.86 Appurtenances (green houses and other structures) 5,650.00 140.00 0.79 and Compensation for Moving Expenses Sub-total 137,041.00 22.87 Allowances and Additional Subsidies Prize for Relocation (per person) 1,100 500.00 0.55 Subsidies for Transition (per person month) 6,600 150.00 0.99 Subsidies for Relocation (per household) 343 5,000.00 1.72 Allowance for Vulnerable Persons 51 1,000.00 0.05 Sub-total 3.31 Relocation of Infrastructure and Utilities 2.14 Administrative Fee (5%) 4.61 Farmland Reclamation Fee 1,240.00 7,000.00 8.68 Taxes and Other Fees 1.00 Sub-total 89.11 Physical Contingency (5.6%) 4.99 Total 94.10 Source: SSDI and Local Government, August 2007.

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Table A.2: Land Acquisition and Resettlement Budget for Jiangbei District

Total Amount of Total Land Compensation Item Compensation (mu) Rate (CY/mu) (CY million)

Compensation for Land Acquisition:

Paddy Land 22.00 26,500.00 0.58 Vegetable Plots 34.00 26,500.00 0.90 Woodland 190.10 24,000.00 4.56 Dry Land 487.20 24,000.00 11.69 Sub-total 733.30 17.74 Compensation for Standing Crops: Dry Land 487.20 1,760.00 0.86 Orchard Tress (number) 1,800.00 25.00 0.05 Paddy Land 22.00 2,674.00 0.06 Vegetable Plots 34.00 2,674.00 0.09 Woodland 190.10 1,760.00 0.33 Scattered Trees (number) 1,600.00 15.00 0.02 Sub-total 4,133.30 1.41 Compensation for Temporary Land Acquisition: Dry Land (total rate for 3 years) 86.50 3,000.00 0.26 Waste Land (total rate for 3 years) 90.50 15,000.00 1.36 Sub-total 177.00 1.62 Cost for Building Relocation House with Tile Roof 29,750.00 300.00 8.93 Brick/Wood Building 4,450.00 240.00 1.07 Brick/Earth Building 4,475.00 200.00 0.90 House Site Preparation Cost 38,000.00 50.00 1.90 Factory Building NA 150.00 School/Clinic/Admin Building NA 240.00 Appurtenances (green houses and other structures) and 2,142.00 140.00 0.30 Compensation for Moving Expenses Sub-total 78,817.00 13.09 Allowances and Additional Subsidies Prize for Relocation (per person) 363 500.00 0.18 Subsidies for Transition (per person month) 2,178 150.00 0.33 Subsidies for Relocation (per household) 121 5,000.00 0.61 Allowance for Vulnerable Persons 23 1,000.00 0.02 Sub-total 1.14 Relocation of Infrastructure and Utilities 0.69 Administrative Fee (5%) 2.35 Farmland Reclamation Fee 480.00 7,000.00 3.36 Taxes and Other Fees 0.40 Sub-total 41.79 Physical Contingency (5.6%) 2.34 Total 44.13 Source: SSDI and Local Government, August 2007.

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Table A.3: Land Acquisition and Resettlement Budget for Changshou District Total Amount of Total Land Compensation Item Compensation (mu) Rate (CY/mu) (CY million)

Compensation for Land Acquisition:

Paddy Land 168.60 27,000.00 4.55 Vegetable Plots 82.00 27,000.00 2.21 Woodland 512.00 24,500.00 12.54 Dry Land 928.40 24,500.00 22.75 Sub-total 1,691.00 42.06 Compensation for Standing Crops: Dry Land 928.40 850.00 0.79 Orchard Trees (number) 1,500.00 25.00 0.04 Paddy Land 168.60 2,000.00 0.34 Vegetable Plots 82.00 2,000.00 0.16 Woodland 928.40 850.00 0.79 Scattered Trees (number) 1,200.00 15.00 0.02 Sub-total 4,807.40 2.13 Compensation for Temporary Land Acquisition:

Dry Land (total rate for 3 years) 188.00 3,000.00 0.56 Waste Land (total rate for 3 years) 407.00 1,500.00 0.61 Sub-total 595.00 1.17 Cost for Building Relocation House with Tile Roof 34,669.00 300.00 10.40 Brick/Wood Building 17,053.00 240.00 4.09

Brick/Earth Building 10,546.00 200.00 2.11

Houes Site Preparation Cost 60,000.00 50.00 3.00

Factory Building NA 150.00 School/Clinic/Admin Building TBD 240.00 Appurtenances (green houses and other structures) 287.00 140.00 0.04 and Compensation for Moving Expenses Sub-total 122,555.00 19.64 Allowances and Additional Subsidies Prize for Relocation (per person) 959 500.00 0.48 Subsidies for Transition (per person month) 5,754 150.00 0.86 Subsidies for Relocation (per household) 313 5,000.00 1.57 Allowance for Vulnerable Persons 72 1,000.00 0.07 Sub-total 2.98 Relocation of Infrastructure and Utilities 1.71 Administrative Fee (5%) 3.34 Land Reclamation Fee 950.00 4,000.00 3.80 Taxes and Other Fees 0.75 Sub-total 77.58 Physical Contingency (5.6%) 4.34 Total 81.93 Source: SSDI and Local Government, August 2007.

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Table A.4: Land Acquisition and Resettlement Budget for Fuling District Total Amount of Total Land Compensation Item Compensation (mu) Rate (CY/mu) (CY million) Compensation for Land Acquisition: Paddy Land 147.30 21,000.00 3.09 Vegetable Plots 78.40 21,000.00 1.65 Woodland 499.00 19,000.00 9.48 Dry Land 499.20 19,000.00 9.48 Sub-total 1,223.90 23.71 Compensation for Standing Crops: Dry Land 499.20 1,800.00 0.90 Orchard Trees (number) 2,200.00 25.00 0.06 Paddy Land 147.30 1,800.00 0.27 Vegetable Plots 78.40 1,800.00 0.14 Woodland 1,800.00 800.00 1.44 Scattered Trees (number) 1,400.00 15.00 0.02 Sub-total 4,724.90 2.80 Compensation for Temporary Land Acquisition: Dry Land (total rate for 3 years) 154.00 3,000.00 0.46 Waste Land (total rate for 3 years) 381.00 1,500.00 0.57 Sub-total 535.00 1.03 Cost for Building Relocation House with Tile Roof 29,080.00 300.00 8.72

Brick/Wood Building 22,994.00 240.00 5.52 Brick/Earth Building 6,521.00 200.00 1.30 House Site Preparation Cost 55,000.00 50.00 2.75 Factory Building 16,050.00 150.00 2.41 School/Clinic/Admin Building 10,706.00 240.00 2.57 Appurtenances (green houses and other structures) and 51.00 140.00 0.01 Compensation for Moving Expenses Sub-total 140,402.00 23.28 Allowances and Additional Subsidies Prize for Relocation (per person) 746 500.00 0.37 Subsidies for Transition (per person month) 4,476 150.00 0.67 Subsidies for Relocation (per household) 241 5,000.00 1.21 Allowance for Vulnerable Persons 42 1,000.00 0.04 Sub-total 2.29 Relocation of Infrastructure and Utilities 1.64 Administrative Fee (5%) 3.71 Land Reclamation Fee 758.00 4,000.00 3.03 Taxes and Other Fees 0.65 Sub-total 62.14 Physical Contingency (5.6%) 3.48 Total 65.62 Source: SSDI and Local Government, August 2007.

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Table A.5: Land Acquisition and Resettlement Budget for Fengdu County Total Amount of Total Land Compensation Item Compensation (mu) Rate (CY/mu) (CY million) Compensation for Land Acquisition: Paddy Land 186.10 25,000.00 4.65 Vegetable Plots 281.60 25,000.00 7.04 Woodland 775.90 19,000.00 14.74 Dry Land 635.20 19,000.00 12.07 Sub-total 1,878.80 38.50 Compensation for Standing Crops: Dry Land 635.20 1,170.00 0.74 Orchard Trees (number) 2,400.00 25.00 0.06 Paddy Land 186.10 2,674.00 0.50 Vegetable Plots 281.60 2,674.00 0.75 Woodland 775.90 1,170.00 0.91 Scattered Trees (number) 1,600.00 15.00 0.02 Sub-total 4,278.80 2.96 Compensation for Temporary Land Acquisition: Dry Land (total rate for 3 years) 897.00 3,000.00 2.69 Waste Land (total rate for 3 years) 2,691.00 1,500.00 4.04 Sub-total 3,588.00 6.73 Cost for Building Relocation House with Tile Roof 34,603.00 325.00 11.25 Brick/Wood Building 16,635.00 260.00 4.33 Brick/Earth Building 9,148.00 200.00 1.83 House Site Preparation Cost 60,000.00 50.00 3.00 Factory Building NA 140.00 School Building NA 250.00 Appurtenances (green houses and other structures) 205.00 140.00 0.03 and Compensation for Moving Expenses Sub-total 120,591.00 20.43 Allowances and Additional Subsidies Prize for Relocation (per person) 729 500.00 0.36 Subsidies for Transition (per person month) 4,374 150.00 0.66 Subsidies for Relocation (per household) 234 5,000.00 1.17 Allowance for Vulnerable Persons 74 1,000.00 0.07 Sub-total 2.26 Relocation of Infrastructure and Utilities 3.02 Administrative Fee (5%) 4.45 Land Reclamation Fee 1,288.00 4,000.00 5.15 Taxes and Other Fees 0.95 Sub-total 84.46 Physical Contingency (5.6%) 4.73 Total 89.19 Source: SSDI and Local Government, August 2007.

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Table A.6: Land Acquisition and Resettlement Budget for Shizhu County Total Amount of Total Land Compensation Item Compensation (mu) Rate (CY/mu) (CY million) Compensation for Land Acquisition: Paddy Land 312.50 22,000.00 6.88 Vegetable Plots 171.40 22,000.00 3.77 Woodland 824.60 20,000.00 16.49 Dry Land 974.40 20,000.00 19.49 Sub-total 2,282.90 46.63 Compensation for Standing Crops: Dry Land 974.40 1,170.00 1.14 Orchard Trees (number) 2,800.00 25.00 0.07 Paddy Land 312.50 2,674.00 0.84 Vegetable Plots 171.40 2,674.00 0.46 Woodland 824.60 1,170.00 0.96 Scattered Trees (number) 2,200.00 15.00 0.03 Sub-total 5,082.90 3.47 Compensation for Temporary Land Acquisition: Dry Land (total rate for 3 years) 268.10 3,086.00 0.83 Waste Land (total rate for 3 years) 2,432.80 1,543.00 3.75 Sub-total 2,700.90 4.58 Cost for Building Relocation House with Tile Roof 31,210.00 300.00 9.36 Brick/Wood Building 20,486.00 240.00 4.92 Brick/Earth Building 32,723.00 200.00 6.54 House Site Preparation Cost 84,000.00 50.00 4.20

Factory Building/Shizhu Waste Dump 140.00 1.20 School Building NA 240.00 Appurtenances (green houses and other structures) 1,480.00 140.00 0.21 and Compensation for Moving Expenses Sub-total 169,899.00 26.43 Allowances and Additional Subsidies Prize for Relocation (per person) 1,221 500.00 0.61 Subsidies for Transition (per person month) 7,326 150.00 1.10 Subsidies for Relocation (per household) 400 5,000.00 2.00 Allowance for Vulnerable Persons 85 1,000.00 0.09 Sub-total 3.79 Relocation of Infrastructure and Utilities 2.94 Administrative Fee (5%) 5.38 Land Reclamation Fee 1,870.00 4,000.00 7.48 Taxes and Other Fees 1.20 Sub-total 101.90

Physical Contingency (5.6%) 5.71 Total 107.60 Source: SSDI and Local Government, August 2007.

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Table A.7: Land Acquisition and Resettlement Budget for Lichuan City Total Amount of Total Land Compensation Item Compensation (mu) Rate (CY/mu) (CY million) Compensation for Land Acquisition:

Paddy Land 88.30 19,000.00 1.68 Vegetable Plots 363.30 19,000.00 6.90 Woodland 371.10 19,000.00 7.05 Dry Land 166.20 19,000.00 3.16 Sub-total 988.90 18.79 Compensation for Standing Crops: Dry Land 166.20 1,170.00 0.19 Orchard Trees (number) 2,600.00 25.00 0.07 Paddy Land 88.30 2,674.00 0.24 Vegetable Plots 363.30 2,674.00 0.97 Woodland 371.10 2,674.00 0.99 Scattered Trees (number) 2,100.00 15.00 0.03 Sub-total 3,588.90 2.46 Compensation for Temporary Land Acquisition: Dry Land (total rate for 3 years) 435.30 3,086.00 1.34 Waste Land (total rate for 3 years) 1,436.40 1,543.00 2.22 Sub-total 1,871.70 3.56 Cost for Building Relocation House with Tile Roof 27,195.00 325.00 8.84 Brick/Wood Building 4,412.00 260.00 1.15 Brick/Earth Building 0.00 200.00 0.00 House Site Preparation Cost 32,000.00 50.00 1.60 Factory Building NA 140.00

School Building NA 240.00 Appurtenances (green houses and other structures) 504.00 140.00 0.07 and Compensation for Moving Expenses Sub-total 64,111.00 11.66 Allowances and Additional Subsidies Prize for Relocation (per person) 196 500.00 0.10 Subsidies for Transition (per person month) 1,176 150.00 0.18 Subsidies for Relocation (per household) 63 5,000.00 0.32 Allowance for Vulnerable Persons 21 1,000.00 0.02 Sub-total 0.61 Relocation of Infrastructure and Utilities 3.93 Administrative Fee (5%) 2.41 Land Reclamation Fee 750.00 4,000.00 3.00 Taxes and Other Fees 0.45 Sub-total 46.86 Physical Contingency (5.6%) 2.62 Total 49.48 Source: SSDI and Local Government, August 2007.

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ANNEX 2: CHONGQING MUNICIPALITY GOVERNMENT〔2005〕 DOCUMENT NO. 67

Annex 2: Chongqing Municipality Government〔2005〕Document No. 67

Notices on Readjustment of Resettlement Compensation Rate and Issues of Properly Conducting Resettlement

All district/county/city governments, all departments of the Municipality, and concerned organizations:

According to the Decision of the State Council on Deepening the Reform and Tightening the Control over Land (State Decree No. 28) and laws and regulations on land administration set by the Central Government, the Municipality Government has decided to readjust the compensation rate for resettlement, which has been approved by the Standing Committee of Chongqing Government. It now notices the readjustment of resettlement compensation and urges to conduct resettlement in a proper manner:

1. Readjustment of Resettlement Compensation Rate

1.1 Main Urban Districts

1.1.1 Land Compensation and Resettlement Compensation

Compensation for land acquisition will be based on unified AAOV. For AAOV, compensation for land and resettlement subsidy see attached table 1. AAOV shall be re-adjusted by statistic bureau together with land and house administration bureau every two years and subject to approval and published for implementation by the Municipality Government.

1.1.2 Compensation for Structures/Buildings and Young Crops

The compensation for structures/buildings and young crops shall be in accordance with tables 2, 3, 4 and 5. Per capita replacement housing area shall follow Land Compensation and Resettlement Method for Chongqing Municipality (Document No.55). Any young crop planted and structures/buildings constructed after notices have been given to the proposed land acquisition deem to be no compensation.

Cash compensation for housing shall be encouraged. The compensation rate shall be developed by main urban districts based on their economic development situation.

1.1.3 Continuing on Promoting Pension through Savings-Insurance

It shall continue on promoting pension through savings-insurance and ensure the life quality of those labor forces transferred from Agriculture to Non-agriculture getting aged after land requisition. The main urban districts shall select the insurance company through competitive bidding to implement such pension system.

(1) When the land requisition notice is published, those labor forces (male reached 50 and female reached 40) transferred from Agriculture to Non-agriculture affected from land acquisition may apply for the savings pension system. After the application approved by the land administration authority, an amount of 23,500 yuan from the land compensation and resettlement subsidy will be transferred to an insurance company for the savings pension, and the balance will be paid to the individual. (2) When the land requisition notice is published, those labor forces (to be re-employment, male between 16 to 50 and female between 16 to 40) transferred from Agriculture to Non-agriculture affected from land acquisition will be compensated for full compensation of land acquisition and resettlement subsidy.

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The local governments shall be responsible for organizing work and skill training for those to be re-employment labor forces. Privilege polices for laid-off people re-employment shall be applied to such labor forces.

Those to be re-employment labor forces shall participate in the social insurance system according to related regulations on social security for urban people.

1.2 Districts/Counties/Cities Other Than Main Urban Districts

The districts/counties/cities other than main urban districts shall readjust the compensation rate for land acquisition and resettlement subsidy according to this notice and considering the local realities. AAOV shall be re-adjusted by the governments of districts/counties/cities every two years and subject to approval and published for implementation by the Municipality Government.

2. Number of Persons to be Transferred from Agriculture to Non-agriculture Due to Land Acquisition

The number of persons to be transferred from Agriculture to Non-agriculture due to land acquisition shall strictly follow the Land Administration Regulations for Chongqing Municipality (Document No. 53). For acquire piecemeal land or scattered land, per capita cultivated land for affected household less than 0.5 mu after land acquisition shall transfer from Agriculture to Non-agriculture after consulted with the affected household; or readjust the cultivated land within the village. When a household decide to transfer from Agriculture to Non-agriculture, it shall calculate the number of persons to be transferred on a household basis and compensate to the affected people for related costs. When a household decide to readjust cultivated land within the village, it shall calculate the number of persons to be transferred following the Land Administration Regulations for Chongqing Municipality (Document No. 53).

3. Pay More Attention to the Living Quality of the Population Transferred from Agriculture to Non-agriculture after Loosing Land

These people will become urban residents after land acquisition. When they have difficulty in living and qualified for entitlement of minimum living expenses for urban residents, the civil administration department shall provide them with the minimum living expenses according to the specified regulations and procedures. Social security regulations for the population transferred from Agriculture to Non-agriculture due to land acquisition will be developed separately after the National policies published.

4. Establish Pension Funds for Population Transferred from Agriculture to Non-agriculture Due to Land Acquisition

All district/county/city governments shall establish pension funds for population transferred from Agriculture to Non-agriculture due to land acquisition. The pension fund for main urban districts will be 20,000 yuan per mu and 10,000 yuan per mu for other districts/counties/cities. The pension fund shall be budgeted in the land acquisition cost and shall be managed under separate account of financial administration authority, and shall be used to pool pension for the population transferred from Agriculture to Non-agriculture due to land acquisition. If pension pull from the district/county/city does not enough to meet the requirements, the local governments shall provide special subsidy from revenue collecting for land use and shall be included into the financial budget.

5. Enhance Administration and Clearly Define Responsibilities

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5.1 All local governments and authorities under the Municipal Government shall enhance management and carry out the regulations set in this Notice so as to appropriately readjust the compensation rate for land requisition and resettlement subsidy and properly implement resettlement.

5.2 All local governments shall be in conformity with legal provisions during implementation of resettlement and land acquisition. Propaganda and elaborations shall be arranged for the readjustment of compensation for land and removal. All concerned administrative authorities of the local governments shall investigate and punish those who retain, embezzle, purpresture, and divert any compensation for land acquisition and resettlement.

5.3 All functional departments of Municipality Government and local governments shall properly implement land acquisition and resettlement within their responsibilities.

Labor and social security authorities shall be responsible for conducting job training for the peasants affected by land acquisition and resettlement, and establish good practices for job opportunity and social security system with development of appropriate methods.

The civil administration departments shall be responsible for providing minimum living expenses to the poverty population transferred from Agriculture to Non-agriculture due to land acquisition.

The public security authorities shall be responsible for reviewing, conducting statistics and recognizing the rural resident registrations, and conducting their registration being transferred from Agriculture to Non-agriculture.

The agriculture departments shall be responsible for distribution of resources for affected collective economy organizations, and verify the modification of contractual rights over the land after land acquisition.

The statistics departments shall be responsible for developing AAOV together with the land administration departments.

6. Compensation for occupying forestry land, large and medium water conservancy and hydro power facilities shall be in conformity with regulations set by Central Government and Municipality Government accordingly.

7. The main urban districts in this text refer to , , Jiangbei District, , , Nan’an District, Beifu District and Banan District (including New Development Area in the north, Economic Development Area and the planned High Technology Development Area).

8. This Notice shall be effective as the day of January 1, 2005.

9. The Land and Housing Administration Bureau, Labor and Social Security Bureau, Public Security Bureau, Civil Administration Bureau and Statistics Bureau of the Municipality Government are responsible for elaboration of any issues rising from this Notice.

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Table A.2.1: Compensation Rate for Land Requisition and Resettlement Subsidy in Main Urban Districts Cultivated AAOV Multipliers for Multipliers for Total Per Capita Land Per Land Resettlement Compensation Capita (mu) (yuan/mu) Compensation Subsidy (yuan)

1.0 above 2300 6 6 27600

1.0 2300 6 6 27600

0.9 2300 6.5 7 27945

0.8 2300 7 8 27600

0.7 2300 7.5 9.5 27370

0.6 2300 8 11.5 26910

0.5 2300 8.5 14 25875

0.4 2300 9 17 23920

0.3 2300 10 20 20700

Less than 0.3 2300 10 20 20700 Notes: 1.When the per capita land is between the two figures, the multiplier shall be calculated as average. 2. When the per capita land is less than 0.7 mu, it shall be calculated as 0.7 mu. 3. When compute per capita land, 2 mu of non-cultivated land shall be calculated as 1 mu of cultivated land.

Table A.2.2: Compensation rate for Young Crops in Main Urban Districts Unit: yuan/mu

Compensation Rate Category of Crops Class 1 Class 2 Class 3

Vegetable (including 1430——1760 1320——1650 1210——1540 cash crops)

Grain 1100——1430 990——1320 880——1210

Notes: 1. For crops on the land for production of hybrid seeds, the compensation shall be calculated 30% more than the compensation for grain. 2. For ponds raising fish, the compensation rate shall be the same as vegetable.

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Table A.2.3: Compensation for Piecemeal Trees in the Main Urban Districts Unit Price for Compensation (yuan) Category Specifications Unit Remarks Class 1 Class 2 Class 3 0.88——1.1 Transplant and 0.77——0.99 0.66——0.88 For all kinds of trees, grafting 18.7——20.9 17.6——19.8 diameter is measured ø2—4cm (incld. 19.8——22 for the trunk at 1 meter 2cm) above ground. When Fruit Tree Nos ø 4—7cm 20.9——27.5 19.8——22 diameter is more than 22——33 27.5——49.5 22——44 ø 7—10cm 33——55 16cm, an additional 20 ø 10—13cm 49.5——82.5 44——77 yuan shall be paid for 55——88 82.5——115.5 77——110 ø 13—16cm 88—121 every 2cm increased. Newly planted without production 2.2——3.3 1.65——2.75 1.1——2.2 Banana Tree nos 27.5——44 22——38.5 16.5——33 5—10 nos 38.5——55 33——49.5 27.5——44

10—15 nos Newly When diameter is more 1.65——2.2 1.1——1.65 0.88——1.32 transplant than 4cm, an 5.5——6.6 4.95——6.05 4.4——5.5 Grape ø 1—2 cm nos additional 10 yuan 6.6——11 6.05——10.45 5.5——9.9 ø 2—3 cm shall be paid for every 11——22 10.45——20.9 9.9——19.8 ø 3—4 cm 1 cm increased. When diameter is more Ø less than 2cm 1.65——2.2 1.32——1.87 1.1——1.65 than 10cm, an ø 2—5 cm 2.2——5.5 1.87——4.95 1.43——4.4 Mulberry nos additional 5 yuan shall ø 5—8 cm 5.5——11 4.95——10.45 4.4——9.9 be paid for every 1 cm ø 8—10 cm 11——22 10.45——20.9 9.9——19.8 increased. Diameter is measured ø less than 3 1.65——2.2 1.43—1.98 1.1——1.76 for the trunk at 1.2 cm meter above ground. 2.2——5.5 1.98——4.95 1.76——4.4 Miscellaneous ø 3—5 cm When diameter is more nos 5.5——9.9 4.95——8.8 4.4——7.7 Trees ø 5—10 cm than 20cm, an 9.9——19.8 8.8——16.5 7.7——14.3 ø 10—15 cm additional 5 yuan shall ø 15—20 cm 19.8——33 16.5——28.6 14.3——25.3 be paid for every 1cm increased. When diameter is more ø less than 5 7.7——13.2 7.15——12.1 6.6——11 than 16cm, an Dry Fruit cm nos 13.2——22 12.1——20.9 11——19.8 additional 10 yuan shall Trees ø 5—10 cm 22——33 20.9——31.9 19.8——30.8 be paid for every 1 cm ø 10—15 cm increased. Sinocalamus Less than 20 affinis, nos 22——44 16.5——38.5 11——33 nos miscellaneous Nos between 33——55 27.5——49.5 22——44 Bamboo 21—40 ø less than 5 7.7——9.9 6.6——8.8 5.5——7.7 Diameter is measured Phyllosachys cm nos 9.9——16.5 8.8——15.4 7.7——14.3 for the trunk at 1.2 Pubescens ø 5—10 cm 16.5——27.5 15.4——26.4 14.3——25.3 meter above ground. ø over 10 cm Nos between Fern Leaf 20—30 8.8——14.3 7.7——13.2 6.6——12.1 Hedge nos Nos between 11——22 9.9——20.9 8.8——19.8 Bamboo 30—50 Rohdea nos nos 0.55 0.44 0.33 Flowering Woody flower No compensation for nos 3.3 0.55 2.2 0.22 1.65 0.11 Wood Herb flower potted plant. Notes: All trees after compensated shall be handled by the organizations or individuals.

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Table A.2.4: Compensation for Structures/Facilities in the Main Urban Districts Unit Price for Compensation (yuan) Category Description Unit Remarks Class 1 Class 2 Class 3 Enclosing wall Slab Stone 38.5——55 33——49.5 27.5——44 (incld. Rubble 27.5——44 22——38.5 16.5——33 22— M3 Fish Brick 33——49.5 27.5——44 —38.5 2.2—— pond Earth wall 4.4——6.6 3.3——5.5 4.4 bank) Cement road 55——66 44——60.5 38.5——55 face Crushed stone (incld. Slab Road stone) M2 Earth 33——44 27.5——38.5 22——33

Tractor road 13.2——15.4 12.1——14.3 11——13.2

Limekiln for brick nos 4400——5500 3850——4950 3300——4400 and tile Slab stone 33——44 27.5——38.5 Cement 44——55 22— 16.5——27.5 11——22 6.6— Well Simple M3 —33 8.8——11 7.7——9.9 —8.8 110—— Machine drilled 220—330 well 165——275 220

Single 198——220 187——209 176——198 Tomb nos Double 308——330 297——319 286——308

Slab Stone 5.5——6.6 4.4——5.5 3.3——4.4 6.6— Sunning Cement M2 8.8——11 7.7——9.9 —8.8 2.2——3.3 ground Tabia 4.4——5.5 2.2 3.3——4.4 2.2 2.2 Earth

Manure pit Slab stone 27.5——38.5 22——33 7.7— 16.5——27.5 Tabia, Cement M3 8.8——11 —9.9 2.2—— 6.6——8.8 1.1— Water Earth 3.3——5.5 4.4 —3.3 storage tank Slab stone, 44——55 Water brick, 33——44 27.5——38.5 M3 channel rubble( brick, 16.5——22 11——16.5 tabia) 22——27.5

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Table A.2.4: Compensation for Structures/Facilities in the Main Urban Districts Unit Price for Compensation (yuan) Category Description Unit Remarks Class 1 Class 2 Class 3 Round pole with height above 9m Electricity Concrete 88——99 44— 82.5——93.5 77——88 33—— pcs Pole square pole —55 38.5——49.5 44 (incld. Round pole less than 9m) Outdoor 1.1 Electricity lighting line m 1.1 2.2 1.1 2.2 Line Power .2 Outdoor Water drinking water m 2.2 2.2 2.2 pipe pipe Steel Framed Steel frame mu 3300——3850 2750——3300 2200——2750 Green membrane House Notes: 1. Methane tank shall be compensated as manure pit, and an additional 10 yuan shal be paid for every 1 cubic meter. 2. All facilities after compensated shall be handled by the organizations or individuals.

Table A.2.5: Building/Housing Compensation rate in Main Urban Districts Unit: yuan/m2 Compensation Rate Category Description Class 1 Class 2 Class 3 Brick- 216——240 204——228 192——216 concrete 192——216 180——204 168——192 168——192 156——180 144——168 Brick- 144——168 132——156 120——144 wood 132——156 120——144 108——132 120——144 108——132 96——120 Earth 108——132 96——120 84——108 Simple 72——96 60——84 48——72 structure 36——60 24——48 12——36

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ANNEX 3: ESTIMATED COMPENSATION RATES FOR LAND REQUISITION AND REMOVAL IN LICHUAN

Annex 3: Estimated Compensation Rates for Land Requisition and Removal in Lichuan

(This document is adapted from the original Chinese version entitled “Land Acquisition and Removal Rates for the Sections within the Industrial Development Zone of Lichuan” dated 23 August 2006, prepared by the Lichuan City Government)

1. Land Requisition

Rural Land: 19,000 yuan/mu Land for Enterprise: 68,000 yuan/mu, of which, enterprise storage area: 128,000 yuan/mu

2. Removal of Buildings/Structures

Brick-concrete: 402 yuan – 698 yuan per square meter Brick-wood: 222 yuan – 265 yuan per square meter Stone-wood: 212 yuan – 236 yuan per square meter Stone-concrete: 371 yuan – 402 yuan per square meter Earth-wood: 192 yuan per square meter Simple structure: 185 yuan – 218 yuan per square meter Fish pond: 8,000 yuan each Fruit tree: 1) productive tree: 8,000 yuan per mu; 2) young tree: 20 yuan each Other forestry land: 5 yuan – 10 yuan each Grave: 3,000 yuan each

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ANNEX 4: GENDER ANALYSIS AND MITIGATION MEASURES

Table A.4.1: Gender Analysis and Mitigation Measures Part A – Gender Analysis of Rural Women in the Project Area 1. Legal Rights of Women Women have equal rights based on strong legal instruments with good enforcement mechanisms. However, some women are not fully aware of their rights. 2. Status of Women in Society In this Project area, most people are Han nationality; but there are sizeable Tujia communities as well as other minorities. The various minorities have interacted and intermarried with each other and the majority Han for centuries. Therefore, women tend to have (or believe they have) social equality. 3. Legal title to land and Women have equal rights legally. Upon marriage, rural women may not receive new land in the husband’s village due to lack of property farmland; in such cases, they can retain rights in their parent’s village. If the State acquires the house or land, women still share equal rights to compensation. 4. Access to common property Men and women have equal rights and access. 5. Livelihoods, gender roles There is no restriction on gender roles, but in rural areas, most women are engaged in farming with their husbands. During slack and mobility season, more men go outside to work. Single young women can leave for work away from the village, and it is somewhat common in some areas. 6. Contribution to household Women contribute more than 50-60% of non-cash income and less than 50% of cash income. Men are more likely to work income outside for wage income in certain communities but are more likely to work outside in others. Women are equally active in processing and marketing farm produce (e.g., chillies, medicinal herbs).. Many women run small family-owned businesses. 7. Intra-household equality Women have an equal voice in decision-making; when men are away, women make many decisions. 8. Education levels Women have equal access to free education and literacy rates are high; however, slightly fewer girls go to upper middle school or higher education due to cost and distance from home. 9. Health conditions Health conditions are quite good and there is no significant difference in nutrition levels compared to men; however, health costs are rising, which is a significant burden for some households, and women may suffer more. 10. Village and government Every village has a women’s representative on the village committee, but women have good informal networks in the village. institutions Local government is quite gender sensitive, but more focus is on poverty. Many local officials are men but offices of social welfare, health and education are more gender balanced. Women can gain access to government through ACWF. Overall assessment and key Women have a significant degree of equality and there are no serious restrictions, disparities or discriminatory practices. risks Women are quite confident. However, women tend not to participate equally in village meetings; instead, they discuss issues amongst other women or in their homes. In this manner, their views are passed to village leaders or via their husbands.

Part B – Gender Analysis of Resettlement Impacts Gender Issues Concern/Risks Project Impacts Mitigation Measures 1. Land, property Women will be Men and women have equal rights; the project will not have any 1) Encourage joint bank accounts. and compensation dispossessed of land or adverse impact. Cash compensation will be paid to household bank rights property, or won’t have accounts and amounts are made transparent. access to cash compensation. 2. House Women will not be Women share equally in house ownership, and this is made more 2) New house could be registered in demolition and involved in decisions or effective when a new house is built. Housing decisions are made by the names of both spouses. relocation use of funds. household, so women participate actively in site selection, house 3) Local government should promote design, costs and temporary housing arrangements. improved sanitation. 3. Rehabilitation of Women may be affected No households will lose all their farmland; therefore, the loss of income 4) Local government and village Livelihoods due to more and may receive is partial and in , adequate land remains to continue their current leaders should provide guidance to loss of farmland less support or livelihoods. However, each household will decide how best to utilize the invest funds to improve household inappropriate compensation. Only households with significant loss require a change incomes, with specific options in

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rehabilitation options. to the household income structure. Since women are an equal labor local areas geared to women. resource; each household will decide how best to maximize their 5) Skills training should be provided income. During Project construction, there will be many opportunities to 2 people (at least 1 female) in for women to gain income from direct or indirect employment. Women households with significant losses. are very active in construction activities in the PIA. 6) Contractors will give preference to hire women. 4. Resettlement Resettlement will result in Gender disparities are not significant and resettlement impacts are not 7) Monitor this issue; if necessary, will increase greater burdens and serious for most households. Loss of land and adequate compensation recommend ways to improve gender disparities fewer opportunities for can benefit women to help them shift to cash crops or non-farm income, benefits for women. women. which would reduce their burden. If houses are relocated, they can move closer to services (e.g. fuel, water, schools, health, markets). 5. Restricted Women have restricted No households will need to relocate outside their village. However, Not required. mobility mobility and this may some may opt to move. CLR will increase mobility and compensation become worse. can be used to purchase a vehicle if the AP decides to buy one. 6. Community Resettlement will disrupt This project will not have serious impacts on community networks; the Not required. support network community networks. alignment avoids the main village areas. A good community support network exists. 7. Impacts on Resettlement is stressful This project will not cause serious impacts on villages. However, some 8) Identify households at risk and health or increase which can lead to poor households are seriously affected and some are vulnerable (poor, provide guidance and support in social problems health or aggravated elderly, disabled, single parent); they could suffer problems. through Social Welfare Bureau and social problems (violence, ACWF. drug abuse) 9) 1% of total resettlement cost budgeted for the special measures for the vulnerable groups. 8. Consultation Women do not have Resettlement impacts are made transparent through notifications in 10) Conduct separate meetings with and participation access to information and each village and regular consultation. Women actively participate in women and ensure ACWF are excluded from most activities. However, collective meetings tend to exclude women. representative is active decision-making Surveys have already targeted women and planning has considered disseminating information and in their opinions. village decision-making. 9. Grievance Women have less access Women have equal access to grievance redress but may be reluctant to 11) ACWF should actively support Redress or ability to have use formal channels. Such matters are handled by the head of women’s issues and follow-up grievance addressed households. redress. 10. Gender Resettlement institutions, In China, resettlement implementation is handled by local government, 12) Resettlement offices should have sensitive project offices and but it is done in a very bureaucratic and administrative way, according experienced staff, including women institutions contractors are not to regulations. There is inadequate training in social sensitivity. from Social Welfare Bureau or gender sensitive which However, officers with experience have much better social sensitivity Poverty Reduction Office to consult leads to more problems and results. with APs. 11. Participatory The concerns and The domestic procedures only focus on physical and financial auditing, 13) Encourage APs and women in monitoring and impacts on women are not the quality of social aspects. For this Project, an experienced particular to participate in M&E. evaluation (M&E) not fully understood or external monitor will be engaged. Gender specific indicators have been considered included. Source: Consultant.

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ANNEX 5: TERMS OF REFERENCE FOR EXTERNAL MONITORING

TOR FOR EXTERNAL MONITORING AND EVALUATION

The objectives of the external monitoring and evaluation are to: i) verify the internal monitoring process and reporting by executing agency (EA) ii) monitor the different stages of the project with a specific and need-based framework. These stages include resettlement and rehabilitation. iii) monitor the process in implementing resettlement plan and develop a framework for process monitoring. iv) highlight the major problems that are encountered in implementing RP and propose solutions. v) develop a profile of the new resettlement site as background information for monitoring the site's absorptive capacity. vi) verify project expenditure and the adequacy of budget. vii) establish whether, after the land acquisition and resettlement activity is completed, the welfare levels of those affected were restored and sustained; viii) if not, identify why not; ix) assess the overall efficiency, effectiveness, impact (including behavioural responses) and sustainability of the policy and practice of land acquisition and resettlement on this project; and x) deduce lessons for future railway projects in the three provinces.

Methodology and Content

The general methodology will involve a mix of one-on-one questionnaires administered to households, and participatory rapid appraisal techniques (PRA) repeated on a six-monthly or yearly basis during the resettlement and construction activities associated with the project.

The household surveys will concentrate on the changes in economic activity, incomes and other social conditions of individual households. Key indicators will include: household composition, ethnicity, education and skill levels, experience in positions of influence, pre-acquisition rights over land, size and condition of house, accumulated assets, annual income, relative mix of productive activities, marketing channels, access to utilities and services (including social services and irrigation systems), and nature and frequency of major social and cultural activities. This survey will provide a series of socio-economic indicators which can subsequently be monitored in order to evaluate the success of the resettlement and income restoration process.

In addition, the baseline survey, undertaken as soon as possible after the DMS should give the complete socioeconomic profile of sampled affected persons (APs) with gender-disaggregated data and details of losses. The baseline survey will ask questions on: • household plans to do when confronted with the impending loss of land and/or housing, • the extent and effectiveness of the dissemination of information on compensation standards and options, acquisition processes and restitution measures.

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The baseline survey will also ask an open-ended question about the farmers' anticipations and apprehensions regarding the impending land acquisition and resettlement process.

The PRA surveys will be conducted at the village level and will include similar indicators to those described above but focussing on the village as a whole. The objective is to provide a wider assessment of the effectiveness of the resettlement process than is possible from the surveys of individual households. These surveys will involve focus group discussions and key informant interviews. Experience shows that these surveys can provide a greater understanding of changes in socio-economic conditions than can be obtained from household interviews. In contrast, the household interviews are more suitable for providing a set of quantifiable indicators which can be compared over time.

Subsequent surveys will use the same format but with greater emphasis given to the changes that have occurred since the baseline survey was undertaken, the actual timing of compensation related activities (signature of contracts, disbursement of funds, identification of new housing sites, construction of new buildings, effectiveness of grievance procedures, and on general levels of satisfaction/ dissatisfaction with the resettlement process. Both household and PRA surveys will be designed to distinguish between changes that are attributable to involuntary resettlement and loss of land and those that result from external factors, e.g. a slump in vegetable prices, the opening of a new factory, etc.

The surveys will be completed by interviews with owners or directors of the non-residential establishments affected, eg. schools, enterprises.

Sampling

As required by the ADB, the baseline survey for launching monitoring and evaluation (M&E) activities should cover 10 percent of the APs. By the time the ROW is marked and the DMS commences the exact identity of the APs and the extent of their individual losses and the losses of the land owning groups will be known. At this stage, it is unclear as to the exact number of households that will be affected. However, this will be provided by the DMS.

A two-stage stratified random sample should be used. The first stage sampling will involve the selection of the affected villages (approximately 1/5th). The initial selection of villages should involve those losing which will be most affected by land and property losses. This selection can be modified if it is considered that it omits any villages with particular characteristics that are significantly different from those originally selected: e.g. higher proportions of ethnic minorities, poor people, different cropping patterns or non-agricultural activity.

Around 10 households should be sampled in each selected village. The sample will be chosen randomly from the schedule of affected households obtained during the DMS. In order to improve comparability, households selected for the baseline survey will be interviewed in all subsequent surveys.

Survey Timing

The RP provides an indicative schedule of the external M&E surveys to be undertaken. The schedule has been designed to provide, as required, six investigations throughout the implementation of the project (one baseline survey, two yearly evaluation surveys, two semi- annual monitoring surveys and a post-construction evaluation survey). The household surveys would be repeated every year starting with the baseline survey implemented as soon as possible after the DMS. The PRA-type surveys would be repeated every 6 months within two year after the start of the land acquisition and resettlement. All selected villages would be visited at this time and annually when the household surveys are being carried out.

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The baseline survey will establish the pre-resettlement socio-economic conditions of AP and the affected villages against which subsequent changes can be evaluated. Again, the baseline survey should give the complete socioeconomic profile of sampled affected persons (AP) with gender- disaggregated data and details of losses.

The monitoring survey during the land acquisition and resettlement implementation will concentrate on the extent to which the procedures laid down in the RP have been followed, the effectiveness of these processes and the level of satisfaction/ dissatisfaction of AP with these processes.

Subsequent, yearly evaluation surveys will provide a quantification of the changes in the social and economic conditions of AP together with a more qualitative assessment of these changes and the reasons for them.

Subsequent monitoring survey will provide interim assessments of the changes taking place in the villages most affected by loss of land and/or property. Village level indicators will be collected but the emphasis will be on qualitative information.

The final post railway construction survey should take place approximately one year after the construction is completed. Its main objective is to assess whether the objectives of the RP were achieved, i.e. whether the restoration of income and welfare has been efficiently and adequately restored, and whether the land acquisition and resettlement process has been effective. This survey will also probe sample households and key informants on how the whole process might be better done next time.

Reporting and Distribution

The results of the M&E survey shall be reported to the MOR and the three Provincial Governments, the counties, townships and the ADB on an annual basis. Copies sent to the ADB should be in English.

The baseline survey should be reported in full. Subsequent reports should provide summaries of principal findings, tabulations of key indicators, qualitative and quantitative descriptions of main changes in socio- economic changes of AP and affected villages and conclusions and implications, if any, for additional action/ assistance. Semi-annual and annual progress reports on the implementation of the resettlement plan should be sent to ADB (in English) and EA (Chinese).

The report on the post-construction survey will constitute a final assessment report on the resettlement process and detail the extent to which the compensation paid and other measures have enabled the AP to maintain or enhance their pre-project social and economic living conditions.

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ANNEX 6:

LIST OF VILLAGES ON CLR ALIGNMENT

Annex 6: List of Villages on CLR Aligment 渝利线沿线村子列表 Cultivated Cultivated Unused AP Losing % Losing Houses AP Losing District/County Town/Township Village Remarks Population Land to be Land Land Land 10% + Land Demolished Houses Acquired Huixing 回兴 Shipanhe 石盘河 320 300 300 Huanshan 环山 2,940 3,838 9,422 Shiping 石坪 Tongjiao 桐角 2,686 2,537 6,795 Xiangxi 香溪 3,184 4,034 13,256 Yufengshan 玉峰山Yufeng 玉峰 2,792 2,728 300 Dongkou 洞口 1,806 2,671 180 Yulin 御临 Yubei District 渝北 Paihuadong 排花洞 960 2,569 1,000 Jianwan 箭沅 1,954 911 220 Guipei 桂培 1,935 819 - Baohua 宝华 1,980 2,220 1,250 Luoqi 洛碛 Xinshi 新石 2,038 - 1,549 Shapei 沙培 2,565 2,119 237 Zhuanfang 砖房 1,898 - 1,225 Yuzui 鱼嘴 Shuangxi 双溪 1,618 - 160 Jiangbei 江北 Xincheng 新城 2,756 2,773 - Fusheng 复盛 Huashan 华山 764 413 - Shaxi 沙溪 3,225 1,477 - Shatang 沙塘 2,381 2,551 500 Yanjia 晏家 Baishi 白石 3,980 3,055 900 Longmen 龙门 3,610 3,045 - Shizi 十字 3,787 4,009 8 Bake 八颗 Fengsheng 丰胜 4,295 4,410 - Tianba 田坝 3,544 4,061 1,600 Changshou 长寿 Duzhou 渡舟 5,386 3,844 350 Duzhou 渡舟 Yanqiao 堰桥 3,185 2,529 - Guoyuan 果园 2,211 2,337 300 Fengcheng 凤城 Yanghe 阳鹤 2,131 2,200 300 Zengci 曾祠 3,280 - 4,109 Dandu 但渡 3,042 2,553 60 Dandu 但渡 Shenggao 升高 2,386 2,851 420 Nanmuyuan 楠木院 1,875 - 1,662 Yakou 垭口 2,431 920 920 Mingjiawan 明家湾 2,245 646 247 Jianshan 尖山 -- Tongzi 桐梓 -- Lidu 李渡 Shuangmiao 双庙 -- Fuling 涪陵 Dashimiao 大石庙 3,272 1,240 1,224 Lianggui 两桂 2,900 - 2,750 Jixing 纪星 3,761 - 1,475 Xuyangxi 叙阳溪 -- Zhihan 致韩 Xinyang 新阳 Fulingbei Station 涪陵北站 1,738 1,790 450 Yanzi 燕子 2,066 1,996 - Zhanpu 湛普 Baishui 白水 1,389 1,491 - Chun'an 春安 --- Dingzhuang 丁庄 Fengdu Station 丰都站 3,079 1,347 150 Shanhe 三合 Xiananxi 峡南溪 Tongxianzhai 童仙寨 Shibanshui 石板水 Shuanglu 双路 Wangjiaba 王家坝 Fengdu 丰都 Yuquanzi 鱼泉子 Sanjian 三建 Liaojiaba 廖家坝 Lizi 栗子 Nanjiang 南江 Miaotangba 庙堂坝 Longhe 龙河 Shicangba 石仓坝 Wusong 五松 Jiangchi 江池 Nanyang 南洋 Jiangze 江泽 Jinzhang 金彰 2,740 2,018 - Baishu 26,002 1,680 - Xialu 下路 白树 Hongyan 红岩 5,400 2,282 - Yinhe 银河 Shizhu Station 石柱站 2,367 1,900 - Chengnan 城南 3,897 1,442 50 Huafeng 华丰 3,470 2,456 - Nanbin 南宾 Chengdong 城东 5,120 578 - Shuangqing 双庆 2,889 2,093 - Hongwei 红卫 Chuanzhu 川主 Baiyu Sanhe 白玉 三河 Wanshou Shizhu 石柱 万寿 Canxi 蚕溪 Xingguang 星光 Qingyuan 青园 Xinglong 兴隆 Shazi 沙子 Shazi沙子 Renhe 人和 Yuquan 鱼泉 Taoyuan 桃园 Longyuan 龙源 Tianhe 天河 Lengshui 冷水 Balong 八龙 Fengmu 枫木 Shiyi 十一 Qingjiang 清江 Wangying 汪营 Wangjiagou 王家沟 Lichuan 利川 Dashiqiao 大石桥 Liangwu 凉雾 Xiushu 秀水 Source: SSDI and Consultant.

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