Supplementary Appendix M 1

SUPPLEMENTARY APPENDIX M SOCIAL AND POVERTY ASSESSMENT

Xinjiang Urban Transport and Environmental Improvement Project

Social and Poverty Assessment 2 Supplementary Appendix M

June 2008 Supplementary Appendix M i

TABLE OF CONTENTS

ABBREVIATIONS ...... iv TECHNICAL NOTES ...... v ACKNOWLEDGEMENTS ...... vi EXECUTIVE SUMMARY ...... vii 1. INTRODUCTORY BACKGROUND ...... 1 1.1 Proposed Project ...... 1 1.2 Purpose of the Social and Poverty Assessment ...... 3 2. OBJECTIVES, APPROACH AND METHODOLOGY ...... 5 2.1 Defining the Beneficiaries ...... 5 2.2 Socioeconomic Survey ...... 6 2.3 Stakeholder Workshops ...... 8 2.4 Focus Group Discussions ...... 8 2.5 Key Informant Interviews ...... 9 2.6 Secondary Information Collection ...... 9 3. UNIQUE CONTEXTS OF XINJIANG ...... 10 3.1 History of Settlement ...... 10 3.2 Natural Resources Bases ...... 10 3.3 Ethnic Diversity ...... 11 3.4 Poverty Issues ...... 12 3.5 Development Policies ...... 14 4. THE FIVE PROJECT CITIES ...... 17 4.1 Specific Physical and Socio-Historical Characteristics ...... 17 4.2 Demographic Characteristics ...... 19 4.3 Economic Characteristics ...... 21 4.4 Poverty in Project Cities ...... 25 4.5 Stakeholders Perceptions of the Project...... 36 5. MAXIMIZING GENDER ISSUES IN THE PROJECT ...... 45 5.1 Gendered Hierarchies ...... 45 5.2 Project Impacts on Women ...... 46 5.3 Project Benefits for Women ...... 48 5.4 Specific Needs of Ethnic Minority Women ...... 52 5.5 Willingness to Participate in the Project...... 53 6. SOCIAL RISKS AND BENEFITS ...... 56 6.1 Ethnic Minority Development Issues ...... 56 6.2 Involuntary Resettlement ...... 58 6.3 STIs/HIV/AIDS ...... 61 6.4 Road Safety Issues ...... 62 6.5 Labor Based Issues ...... 64 6.6 User Affordability ...... 68 7. CONSULTATION AND PARTICIPATION STRATEGY ...... 73 7.1 Stakeholder Analysis during PPTA ...... 73 7.2 Strategy for Project Design/Monitoring/Implementation ...... 73 7.3 Post-Project Participation Strategies ...... 78 8. MONITORING AND EVALUATION PLAN ...... 80 8.1 Introduction ...... 80 8.2 Objectives and Approach ...... 80 8.3 Information to be collected ...... 81 8.4 Survey Timing and Indicators ...... 82

ii Supplementary Appendix M

8.5 Logistics, Team Composition and Budget ...... 83 9. INSTITUTIONAL DEVELOPMENT/LOCAL CAPACITY BUILDING ...... 84 9.1 Incorporation of Social Safeguards ...... 84 9.2 Socially Inclusive Urban Development ...... 86 9.3 Leveraging Other Investments ...... 87 9.4 Empowerment of Local Communities ...... 88 10. SOCIAL ACTION PLAN ...... 89 11. CONCLUSION ...... 95 BIBLIOGRAPHY ...... 101 Appendix I ...... 103 Appendix II ...... 110 Appendix III ...... 114 Appendix IV ...... 121

Supplementary Appendix M iii

TABLES AND MATRICES

1. Stratified Sample of Households Surveyed 2. Population of Major Ethnic Groups 3. Household, Population and Land Area 4. Urban and Agricultural Population 5. Population of Major Ethnic Groups 6. Population Changes in the Five Cities 7. Gross Regional Product and Per Capita Income 8. Agricultural and Livestock Production 9. Horticultural Production 10. Industrial Production 11. Number of Employed Workers 12. Average Wages of Workers 13. New Investment in Project Cities 14. Foreign Direct Investment in Project Cities 15. Tourism in Project Cities 16. Incidence of Income Poverty 17. Other Quantitative Indicators of Poverty 18. Major Sources of Livelihoods 19. Educational Status of Household Members 20. Causes of Respiratory Disorders in Households 21. Access to Basic Water and Sanitation Facilities 22. Housing Area Size of Households 23. Ownership of Household Consumer Durables 24. Ownership of Means of Transportation 25. Mixed Male and Female FGD Perspectives 26. Female Only FGD Perspectives 27. Poor and Vulnerable FGD Perspectives 28. Ethnic Minority Group FGD Perspectives 29. Public Sector FGD Perspectives 30. Private Sector FGD Perspectives 31. Project Related Impacts for Ethnic Minority Groups 32. Resettlement Impacts 33. Incidence and Costs of Traffic Accidents 34. Employment Generation Each Year During Implementation 35. Income Earnings Each Year During Implementation 36. Value of Services Available in Project Cities 37. User and Affordability Issues 38. Actual Costs of Transport and Waste Management Services 39. Major Monitoring Indicators 40. Project Related Social Issues

MAP 1. Location of Five Project Cities

iv Supplementary Appendix M

ABBREVIATIONS ADB Asian Development Bank ACWF All China Women’s Federation AI Appreciative Inquiry AIDS Acquired Immune Deficiency Syndrome AusAID Australian Agency for International Development CB Construction Bureau CIS Commonwealth of Independent States CNY Chinese Yuan CSW Commercial Sex Workers EA Executing Agency EIA Environmental Impact Assessment EMDP Ethnic Minority Development Plan FSC Future Search Conferencing EMP Environmental Management Plan FYP Five Year Plan (2006-2010) GAD Gender and Development GDP Gross Domestic Product HDI Human Development Index HH Households HIV Human Immune Virus IA Implementing Agency IDU Injecting Drug Users MMT Multi-Modal Transport NMT Non-Motorized Transport M&E Monitoring and Evaluation MLS Minimum Living Standard PIA Poverty Impact Analysis PPP Purchasing Power Parity PMO Project Management Office PRC People’s Republic of China RRP Report and Recommendations to the President SAP Social Action Plan SEIA Summary Environmental Impact Analysis SES Socioeconomic Survey SPA Social and Poverty Analysis SPRSS Summary Poverty Reduction and Social Strategy STIs Sexually Transmitted Infections RP Resettlement Plan US$ United States Dollars WB World Bank XMADI Xinjiang Municipal Architecture Design Institute XPCC Xinjiang Production and Construction Corps XUAR Xinjiang Uyghur Autonomous Region

Supplementary Appendix M v

TECHNICAL NOTES

The rate of exchange used in this SPA is US$1-CNY6.85 based on the average exchange rate during the PPTA. All social and poverty data where estimates have been included in the US$ are calculated on this rate of exchange.

The metric system for all units of measurement has been used throughout the SPA unless indicated otherwise.

Official statistical data where indicated in the SPA has been extrapolated from the Xinjiang Statistical Yearbook 2007 compiled by the Statistics Bureau of Xinjiang Uyghur Autonomous Region. However, it has been organized into categories utilized specifically for the SPA and cross-referencing to corroborate socioeconomic data should keep this in mind.

Ethnic groups have been spelt according to the specific preferences of ethnic groups (e.g. Uyghur instead of Uygur or Urgur) but place names (e.g. Turpan instead of Tulufan) but in cross-referencing with other reports prepared by the PPTA there may be some inconsistencies.

vi Supplementary Appendix M

ACKNOWLEDGEMENTS

The PPTA Social Development Consultant Team would like to thank the following for their great assistance in providing data and information on which this SPA is based and without which it would not have been possible to prepare the SPA:

 The leaders and personnel of the Xinjiang Uyghur Autonomous Regional Government.  The leaders and personnel of the Project Leading Group, including the XUAR Construction Bureau, Development and Reform Commission, Finance Bureau, National Resources Bureau, Environmental Protection Bureau, and Tourism Bureau, together with the bureaus, departments, offices and committees under their jurisdiction.  The leaders and personnel of the Xinjiang Project Management Office and the Altay, Changji, Hami, Kuytun, and Turpan Project Management Offices, especially the time spent assisting the Social Development Consultants undertake the SES and facilitate the FGDs. The PMOs should also be thanked profusely for their fine hospitality.  The leaders and personnel of Altay Administrative District, Changji Hui Autonomous Prefecture, Hami Administrative Prefecture, and Turpan Administrative District, together with the bureaus, departments, offices, and committees under their control.  The leaders and personnel of Altay City, Changji City, Hami City, Kuytun City, and Turpan Municipal Governments, together with the bureaus, departments, offices and committees under their personnel.  The leaders and personnel of Xinjiang Municipal Architecture Design Institute who labored under very difficult circumstances and were sometimes chided for lack of due diligence but who in the end proved to be very valuable in preparing the SPA.  Special mention must be made of Ms Wang Zhe Ng (Cathy) of the Development and Reform Commission who accompanied the team, including on onerous overnight trips, and served as a valuable link between the Social Development Consultants and leaders and personnel at every level.  Special mention must also be made of Imam Aibibula Sadula of the Remnin Road Mosque in Hami for all the time he spent trying to resolve sensitive issues surrounding the proposed demolition of this mosque, including extensive consultations with the local Uyghur community, Ethnic and Religious Affairs Bureau, and other relevant bureaus, departments, offices, and civil society groups in both Hami and Urumqi. In this respect the PPTA Team was also able to benefit from the insights provided by Professor Tsui Yanhua, a social anthropologist from Xinjiang Normal University, and a noted authority on ethnic development issues in XUAR.  The people of each of the five cities, who gave up their time to provide first-hand socioeconomic information and share their ideas on how the Project should be designed, implemented, monitored, and evaluated, must be acknowledged. Without their participation it would not have been possible to prepare this SPA.  Last but not least the contribution of Ms. Wang Huijuan (Emily), Ms. Huang Li (Lily) and Sun Zhong Gen (Simon), all doctoral students from Hohai University, Nanjiang City, Jiangsu Province, must be acknowledged, especially the contribution of Emily who was the focal point for the other Social Development Consultants when they were not at the Project site.

Supplementary Appendix M vii

EXECUTIVE SUMMARY

Description of the Project

The Project consists of five components based on each of five cities located in the Xinjiang Uyghur Autonomous Region: (i) Altay; (ii) Changji; (iii) Hami; (iv) Kuytun; and, (v) Turpan. Within each of these five components are two major sub-components: (i) construction of new roads and upgrading of new roads and some other construction activities including new bridges and (ii) environmental sanitation improvements. The rationale for the Project in each of the five cities is that it will improve the road network as part of a broader strategy to ensure sustainable development is socially inclusive through the multiplier effects of increased economic activity. Greater levels of investment in these five cities will lead to increased opportunities for the local population, which with the range of social sector initiatives initiatives being financed by a range of investment projects, both nationally and internationally. Hence the Project also has a pro-poor approach embedded in it. The Project bases this rationale on the strategic location of the XUAR to the emerging markets of Central Asia and the rapidly growing economies of Russia and other CIS states.

Socioeconomic Issues

The Han ethnic group constitutes 72.6% of the total population of 1,650,524 in the five cities, which is nearly double the average of the Han population for XUAR but the ethnic mosaic is more complex on a city-by-city basis. The city with the highest percentage of ethnic minority groups is Turpan (78.6%) and the city with the lowest percentage is Kuytun (5%). Other cities are as follows: Altay (39%), Changji (22.1%) and Hami (28.2%). Birth rates for ethnic minority groups are higher than for the Han ethnic group (11% cf. 9.4%), the major explanation being that these ethnic minority groups (especially the Uyghur and Kazak) are not subject to the official ―one-child‖ policy that the rest of the population in China is subject to. Average household size varies from 2.86 persons in Kuytun to 3.54 persons in Turpan.

The city with the highest per capita income is Kuytun (CNY23,705) and the city with the lowest per capita income is Altay (CNY11,480), followed by Turpan (CNY11,546), Hami (CNY15,720), and Changji (CNY15,720). Agriculture and livestock production is very important in Changji and Hami but horticulture is very important in Turpan, which is sometimes referred to as the ―grape city‖ because it produces 25% of all China’s grapes. Changji is the most industrialized of the five cities and Altay the least industrialized. However, Kuytun is located in close proximity to the ―golden triangle‖ of oil producing and refining cities and this explains its high per capita income.

Altay has the least number of employed workers numbering 53,900 and Changji the most numbering 198,400. Altay also has the lowest average wage at CNY17,302 while Changji has the highest at CNY17,997 per waged employee. Over two-thirds of new investment is in Changji and Hami with the secondary industrial sector and tertiary industrial sector attracting most of this investment.

Changji has the highest investment per capita at CNY7,016 and Kuytun the lowest at CNY2,730. Foreign direct investment is largely restricted to Changji and Hami with a total of 11 FDI projects approved in 2007. Turpan had the largest number of tourists in 2007 numbering 4,035,000 but per capita average expenditure of CNY188.35 was lower than the CNY696.44 per capita expenditure in Altay, which in 2007 had 772,500 tourists.

The incidence of income poverty using MLSS criteria and based on the SES varies from 10% in Altay to 2.5% in Kuytun, while for ethnic minority groups it varies from 13.8% in Altay to 2.4% in Turpan, and for single adult households from 11.1% in Altay to 3.5% in Changji. However, if relative poverty criteria based on US$2 per capita, per day is

viii Supplementary Appendix M utilized, which has been adopted as the poverty bench-marking indicator for this SPA because it generates the greatest poverty reduction impacts. 40% of people in Altay are poor while only 12.6% of people in Changji are poor. Among ethnic minority groups 50% of people are poor in Altay but only 19% in Kuytun, while among single adult households 56.7% are poor in Altay and 25% in Changji. Other quantitative indicators of income-related poverty (food consumption, monthly income surplus over expenditure, and net value of household assets) partly reflect this poverty incidence although the Uyghur ethnic minority group in Turpan is substantially better-off than ethnic minorities living in Altay (primarily Kazak) with a monthly income surplus per capita over expenditure of CNY 1,634 (cf. CNY 341 in Altay) and net value of household assets of CNY 256,505 (cf. CNY 85,854 in Altay).

Livestock and cropping is the major source of livelihood for 24.5% of the population surveyed in Turpan (32.3% of ethnic minority households, 36.5% of poor households, and 21.6% of single adult households) but only 2.7% (10.2% of ethnic minority households, 12.1% of poor households, and 0% of single adult households) of the population in Kuytun. However, per capita income at CNY 14,490 is higher in Changji (CNY 15,900 for ethnic minority households, CNY 12,175 for poor households, and CNY 14,175 for single adult households) and lowest in Kuytun at CNY 11,550 (CNY 12,760 for ethnic minority households, and CNY 10,100 for poor households).

Public sector waged employment is highest in Altay at 48.4% (31.5% for ethnic minority groups, 29% for poor households, and 20% for single adult households) of the population surveyed and lowest in Changji at 35.3% (29.7% for ethnic minority households, 22.8% for poor households, and 32% for single adult households) of the population but per capita income of CNY11,550 (CNY 15,520 for ethnic minority households, CNY 12,500 for poor households, and CNY 15,965) is lowest in Kuytun and highest in Changji at CNY 14,490 (CNY 15,900 for ethnic minority households, CNY 12,175 for poor households, and CNY 14,175 for single adult households).

Private sector waged employment is highest in Changji at 28.9% (25.6% for ethnic minority households, 20.3% for poor households, and 30.2% for single adult households) and per capita income is also highest at CNY 26,616 (CNY 16,650 for ethnic minority households, CNY 12,800 for poor households, and CNY 14,250 for single adult households). The lowest percentage of private sector waged employment is in Altay at 12.1% (2.2% for ethnic minority households, 0% for poor households, and 5.9% for single adult households) as is the per capita income of CNY 13,750 (CNY 12,300 for ethnic minority households and CNY 13,500 for single adult households).

Small and medium enterprises account for 30.2% of households (17.1% for ethnic minority households, 0% of poor households, and 25.5% of single adult households) surveyed in Kuytun but only 5% of households (2.2% of ethnic minority households, 0% of poor households, and 5.9% of single adult households) in Altay while Hami has the highest per capita incomes of CNY 18,242 (CNY 16,791 for ethnic minority households and CNY 15,250 for single adult households) and Altay the lowest at CNY 13,750 (10,512 for ethnic minority households and CNY 11,750 for single adult households).

Households relying on a combination of agriculture and non-agriculture are highest in Altay at 20.7% (30.2% of ethnic minority households, 6.5% of poor households, and 18.2% of single adult households) of the population surveyed and lowest in Kuytun at 1.6% (2% for ethnic minority households, 0% of poor households, and 0.8% for single adult households) but households in Changji had the highest per capita income of CNY 18,345 (CNY 20,175 for ethnic minority households, CNY 12,890 for poor households, and CNY 16,750 for single adult households) and Kuytun the lowest at CNY 13,450 (CNY 13,875 for ethnic minority households and CNY 13,275 for single adult households).

Supplementary Appendix M ix

A number of other indicators – educational status of household members, causes of respiratory disorders, access to basic water and sanitation services, floor area size of households, ownership of consumer durables, and ownership of means of transportation – have been used to construct the poverty profile of households in each of the five cities. There are no major surprises from the SES, except that Altay and Turpan, the two cities with the highest percentage of ethnic minority groups, rank higher in terms of females completing post-secondary education (18.4% in Altay and 9.5% in Turpan) than males (17% in Altay but only 3.6% in Turpan and the lowest male completion rate of the five cities). In three of the five Project cities, neither poor males nor females completed post-secondary education although in Kuytun a substantial 16.6% of females had completed secondary education.

Dust is the major cause of respiratory disorders in Altay because of unsealed roads but in Changji, Hami, Kuytun, and Turpan air pollution caused by coal-fired heating systems, in the winter-time is considered to be a more major cause of respiratory disorders. However, it is also possible that dust generated from poor solid waste management practices is another cause of respiratory disorders. Of equal importance there are a range of bacterial, viral and parasitic infections not completely understood by people suffering from them that are also caused by poor solid waste management practices. Health Bureaus in each of the five cities also supplied data that shows hepatitis B, diarrhea, and dysentery is on the increase. This is also related to basic water and sanitation facilities: the poor faring less well than the non- poor and Hami being the worst city in terms of access to piped water supply, indoor flush toilets, and common bathing facilities.

In terms of floor area of houses, ethnic minority households, irrespective as to what city they lived in, generally have houses with greater floor areas than the Han but the latter are more likely to live in apartments with piped water, a continuous supply of electricity, flush toilets and bathrooms. This is also why ethnic minority households who do not live in apartments – and the Uyghur especially do not want to – have a higher net value of household assets relative to their monthly surplus income than seemingly better-off Han households.

Mobile phone ownership is very high for all socioeconomic groups reflecting the fact that both handsets and call rates are relatively inexpensive. The same applies to color television sets, refrigerators, washing machines, and to a lesser extent DVD/VCD players but in terms of ownership of air conditioners, cooking stoves, and computers ownership rates among ethnic minority households, poor households and generally single adult households is lower than for the population of each city overall.

Motorized vehicle ownership in all of the Project cities is quite low with the highest ownership rates in Changji and the lowest in Altay but NMTs, including donkey or horse carts are higher among ethnic minority groups (especially the Hui in Changji and Uyghur in Hami and Turpan) but bicycle ownership which denotes the most affordable means of NMT varies for poor households from a high of 83% in Changji to a low of 16% in Turpan. If there is one very important issue that the SES has identified is the importance of NMT in all five Project cities, not only for existing road users (especially women and other vulnerable groups) but also planning contexts designed to make these cities more habitable. Shifting the focus to stakeholder perceptions of the Project based on a series of participatory FGDs facilitated by the Project it comes as no surprise that irrespective as to the socioeconomic status of FGD participants livelihood priorities (household food security, clothe and educate and keep household members in good health, accumulate assets, and maintain social networks) were accorded the highest priority.

Urban transport issues directly related to the Project (better transport connectivity, permanent surfacing of roads, provision of footpaths, street lighting, controlled crossings, traffic calming issues, more vigorous enforcement of traffic regulations, continued access for traditional NMT users, and greater demand driven transport services) generated a different

x Supplementary Appendix M range of priorities. Females irrespective of their socioeconomic status attached the highest of priorities to road safety related issues, while ethnic minority households attached the highest of priorities to the continued use of traditional NMT (even if they did not use them because of what they symbolized), public sector groups to permanent surfacing of roads, and private sector groups to improved transport connectivity.

In relation to urban environmental issues FGD participants from Changji and Turpan were more likely to attach a higher priority to a cleaner and greener city than in the other cities, but people in Altay already perceive that there city is clean and green. Poorer FGD participants attach a lower priority to urban environmental issues if there is any possibility that economic development will be arrested. Women in general attached a higher priority to the range of urban environmental issues than males, especially in relation to solid waste management, although in Changji, all socioeconomic groups attached the highest of priorities to this issue.

Linkages with the Project are captured very clearly in the matrices summarizing the perceptions of the FGD participants. Actual linkages were highest among mixed male and female FGD participants in Turpan and lowest in Kuytun and this pattern was similar for female only FGD participants and ethnic minority FGD participants but there was equal scoring for all poor and vulnerable FGD participants from all five cities. In relation to public sector groups, Turpan FGD participants gave the highest score to these linkages and once more Kuytun scored the lowest but by only a very slender margin and a similar scoring outcome existed for private sector FGD participants. That sub-component with the least perceived linkage was generally the provision of rubbish tins, except in Turpan, which is not surprising given Turpan’s position as a major tourist destination but interestingly ethnic minority FGD participants and poor and vulnerable FGD participants did not score the provision of rubbish tins very highly: this reflects their focus on areas away from the central areas of the city. The highest priority for all FGD is the impact of local labor being employed on the Project, either directly or indirectly as a result of the multiplier effects.

Maximization of Gender Impacts

To maximize gender issues in the Project gendered hierarchies were briefly examined and it is concluded there are no real obstacles to the fullest possible active participation of all women in the Project. In the Consultation and Participation Plan strategies to ensure that women can actively participate in the Project are outlined and the processes associated with consulting with women and facilitating their participation in the design, implementation, monitoring and evaluation of the Project. Women have expressed a strong willingness to participate in the Project and anticipate that the Project will facilitate the enabling environment to ensure that this occurs.

However, the gender analysis also revealed a number of negative impacts, especially those associated with (i) resettlement (including loss of land, culturally inappropriate and non- preferred new houses, partial loss of income, and disruption of existing social networks) and (ii) problematic nature of urban transport improvements (including priority to management of traffic flow rather than connecting communities, bias towards motorized forms of transport, and road safety issues). The Project has developed a number of mitigation measures to ensure these negative impacts are addressed including clear details in the RP as to how negative resettlement impacts will be addressed (also in the EMDP for ethnic minority female AP) and in relation to urban transport improvements the Project has a detailed approach as to how women as road users will not be negatively impacted upon by the Project.

Project benefits for women outweigh the negative impacts of the Project. These benefits include: (i) more pedestrian-friendly access to city roads will be achieved; (ii) as users of public transport women will benefit from bus stops with proper bus bays and associated Supplementary Appendix M xi pedestrian crossings; (iii) gain access to more affordable and less time consuming forms of public transport; (iv) upgrading of existing footpaths and road lighting will make it safer both as pedestrians and in terms of personal security; (v) permanent surfacing of roads will result in less dust ensuring greater visibility, less risk of respiratory illnesses, and household activities such as laundering and food preparation; and (vi) capacity building in each of the five cities that is both pro-gender and pro-poor ensuring the specific needs of women are factored into urban transport planning processes. In relation to environmental sanitation improvements the benefits for women include: (i) improved public hygiene through the provision of public toilets; (ii) rubbish tins in the city keep the streets clean reducing the risk of infectious disease, rendering the streets safer to walk on, and enhancing the aesthetic appearance of the city; (iii) more effective management of solid waste reduces the incidence of injury and disease and unpleasant odors and enhances the aesthetic appearance of the neighborhood; and, (iv) public awareness programs are designed to modify existing behavior to the disposal of solid waste.

Social Risks and Benefits

To ensure that the Project can achieve its objectives 3,439 AP in four of the five Project cities (no resettlement impacts in Kuytun) will lose all or a portion of their productive land, housing and other productive assets. Of these 3,439 AP 1,696 are women, 1,934 are from ethnic minority groups (969 females), and 442 (280 females) from poor and vulnerable groups. Total numbers to be resettled are 1,889 (935 females), of these 1,301 are from ethnic minority groups (653 females), and 395 (222 females) from poor and vulnerable groups. Total numbers requiring partial income restoration total 1,550 (761 females), of these 633 (316 females) are from ethnic minority groups, and 105 (59 females) from poor and vulnerable groups.

The RP contains details on how all aspects of the resettlement process will be managed based on the principle that none of the AP should be any worse off as a result of being resettled and preferably better off. Special safeguards to ensure ethnic minority AP are entitled to the same level of compensation and opportunity to participate in the resettlement processes are also incorporated into the RP and reinforced in the EMDPs for each of the four cities where resettlement will occur. Social and poverty issues have been analyzed and the major issues are associated with the impact on existing social networks, the appropriateness of resettlement sites, and the likely success of proposed income restoration approaches. It is concluded that with the active participation of AP and a careful evaluation of alternatives the social and poverty impacts are likely to be positive.

EMDPs for each of the five Project cities have been prepared taking into account the specific socio-cultural and economic characteristics of different ethnic minority groups living in each of these cities. The EMDPs highlight the positive impacts (i) improved access to health and education facilities; (ii) road safety improvements in ethnic minority communities; (iii) improved household and community hygiene; (iv) employment opportunities for poor ethnic minority women; (v) gender empowerment through greater levels of participation; (vi) enabling environment for the development of small enterprises; (vii) tourism development controlled by ethnic minority groups; and, (viii) greater awareness by city planners of specific needs of ethnic minority groups. Medium to high positive impacts are likely to occur in Altay, Changji, and Turpan, and low to medium positive impacts in Hami and Kuytun.

Negative impacts include: (i) ethnic minority groups accounting for the greatest number of AP; (ii) creation of noise, dust and waste during civil works; (iii) possibility of increase in communicable diseases; (iv) non-local workers not respecting local cultures; and, (v) motorized road users posing greater risk to users of traditional NMT. The risks are highest in Turpan and variable in the other four cities but a series of mitigation measures including: (i) RP and EMDP designed to ensure negative impacts are addressed; (ii) EMP addressing

xii Supplementary Appendix M issues of construction nuisances; (iii) STIs/HIV/AIDS risks to be addressed as part of the tendering process; (iv) all unskilled workers and as many skilled workers as possible will be sourced locally; and, (v) road safety issues and policy dialogue designed to ensure traditional NMT users are still able to use roads.

The EMDPs include a specific budget for a series of measures considered necessary in each of the five Project cities. Budgets vary from CNY 4,890,000 for Altay to CNY 5,480,000 for Turpan. However, in the case of Turpan it is being recommended that additional financing be sought to assist local women develop their capacity to leverage tourism development to improve their own livelihoods. A related tourism survey specific to Turpan was undertaken in mid-May 2008 and it was found that local women are very interested in providing homestay accommodation services, tour guiding, food preparation, and showcasing local culture. The EMDPs also include training in ethnic arts, Chinese language, and driving skills based on demands of ethnic minority groups who were consulted during the preparation of the EMDPs.

Social risks associated with STIs/HIV/AIDS appear to be higher in Turpan and possibly Kuytun than the other three Project cities. This is because of the higher volume of tourist traffic in Turpan and ―floating population‖ in Kuytun. However, it has been assessed that this Project will not of itself significantly add to existing problems associated with STIs/HIV/AIDS. The reason being that where possible most of the labor, especially unskilled labor will be sourced locally, but nevertheless measures including the distribution of free condoms to those workers who request them and HIV testing free-of-charge and in strict confidentiality to workers who feel they are at risk, will be introduced.

Typically with road projects it is assumed that one of the bigger risks will be when greater volumes of motorized traffic traveling at higher speeds will increase the likelihood of traffic accidents. The Project has been designed to minimize this impact and indeed is likely to bring about a reduction in road user accidents (pedestrians, NMTs and motorized vehicle users) because road safety awareness issues will also be addressed through targeting of road users, especially children at school. It is not unrealistic to expect that the traffic accident rate can decrease by up to 50% during the Project implementation. This would result in 6 fewer deaths and 11 fewer permanently impaired persons in Altay, 62 fewer deaths and 59 fewer permanently impaired persons in Changji, 26 fewer deaths and 30 fewer permanently impaired persons in Hami, 18 fewer deaths and 27 fewer permanently impaired persons in Kuytun, and 18 fewer deaths and 21 fewer permanently impaired persons in Turpan.

Labor-based issues the Project can deal with include: (i) occupational health and safety; (ii) adherence to minimum wage payments; and, (iii) labor administration. The Project can also address issues associated with the cultural rights of ethnic minority workers to take time off to participate in regular religious rituals (e.g. Friday Prayers at the mosque for Muslim workers). The Project will also ensure that unskilled labor has the opportunity to upskill and enhance its capacity, including that of unskilled female labor, to become more competitive for future employment.

While there are social risks associated with labor-based issues there are also significant positive impacts. Employment generation during each year of Project implementation will result in 356 management and technical jobs, 1,634 skilled jobs, and 1,326 jobs. At least 20% of the unskilled jobs will be allocated to women with first preference being accorded women affected by resettlement. The greatest temporary employment impacts are in Altay where 531 unskilled jobs will be created and Changji where 620 unskilled jobs will be created. By way of contrast only 50 unskilled jobs will be created in Turpan but indirectly it has been estimated in Turpan that 1,500 unskilled jobs will be created: this is the second highest number after Changji where it is estimated that 3,100 jobs will be indirectly created. In the other three cities the multiplier effects of the Project on employment generation are less significant. Supplementary Appendix M xiii

Direct income earnings of workers each year during Project implementation total CNY 12,242,000 for management and technical workers, CNY 37,614,600 for skilled workers and CNY 22,358,300 for unskilled workers. Indirect income earnings of labor total CNY 23,488,000 for management and technical workers, CNY 65,391,800 for skilled workers and CNY 90,404,000 for unskilled workers. This is a significant cash injection into the local city economy, especially in Altay the smallest of the five cities. Despite the temporary nature of the employment it enables unskilled labor to contribute to household expenditure and/or accumulate some savings, which only paid wage labor or some other form of IGA is capable of providing.

User and affordability issues were also analyzed as part of assessing social risks that the Project might not fully benefit poorer and more vulnerable groups in each of the five cities. Few households feel they get full value for public transport services and no households feel they get full value for garbage disposal. Some households are prepared to pay fare increases of up to 10% for improved public transport services but apart from Turpan ethnic minority households are not prepared to pay higher fares. However, all households irrespective as to their socioeconomic status are prepared to pay tariff increases for improved waste management, ranging from 10% for poor and vulnerable households in Hami to 100% for ethnic minority households in Turpan.

Other social risks specifically associated with poor environmental sanitation have also been assessed. It has been argued that the Project if it can achieve higher collection rates will make a very positive improvement not only to household hygiene and illness prevention but also the general aesthetic appearance of local communities. A Health Impact Assessment has been prepared quantifying the impact of the Project in relation to this sub-component and the three major illnesses it has focused on are hepatitis B, diarrhea and dysentery because these are illnesses on the increase and city Health Bureaus have the institutional capacity to monitor these impacts.

Consultation and Participation Strategy

A Consultation and Participation Strategy has been prepared. It was implemented during the design of the Project and will be used through project implementation, monitoring of all social safeguard indicators during this phase, and evaluating the social and economic outcomes of the Project. It has been designed to maximize the active participation of all stakeholder groups, but especially ethnic minority women and other poorer and vulnerable groups. The RP, EMDP, EMP, and SAP are all Project outputs to date and the most significant action during Project design was assisting Hami City work with all local stakeholder groups to ensure a win-win outcome in relation to the proposed demolition of a historic mosque in Hami, which in the end due to a very concerted attempt to identify an alternative road alignment was not demolished.

Monitoring and Evaluation Plan

A Monitoring and Evaluation Plan has been prepared. It will generate the following outcomes: (i) data and information to identify effects and Project impacts including qualitative and quantitative information to describe social and poverty changes; (ii) analyze and document the results for future planning of urban transport and environmental improvements and associated poverty reduction interventions; (iii) initiate participatory approaches required to plan and implement complementary activities and to facilitate synergies between this Project and these activities; and (iv) focus on key actions and processes learned from the Project for replication and up-scaling for those areas of each Project city that will not directly benefit from this Project. All data will be disaggregated by gender, ethnicity and poverty to ensure the impacts on different social groups are clearly understood.

xiv Supplementary Appendix M

Institutional Development and Local Capacity Building

Instructional development and local capacity building is addressed via: (i) the incorporation of social safeguards (training modules in resettlement planning and ethnic minority development issues will be prepared and financed by the Project); (ii) socially inclusive urban development (especially pro-poor and pro-gender approach to city planning); (iii) the leveraging of other investments (especially the JBIC financed urban infrastructure project in all cities with the exception of Kuytun); and, (iv) empowerment of local communities (with an emphasis on community-based consultations and active inputs into planning processes).

Social Action Plan

Finally, a Social Action Plan has been prepared based on the SPA and reflective of the consultations undertaken to identify social issues common to all Project cities and those specific to one or more cities, the action plan, and stakeholders responsible for implementation of the SAP. The common issues relate to (i) ensuring social safeguards are embedded in the Project; (ii) sharper focus on people living in poverty; (iii) improved urban roads are designed to be more pedestrian-friendly; (iv) users of NMT are not swept to one side in preference to motorized vehicle users; (v) employing as much local labor as is practically possible; (vi) policy dialogue to address demand-based needs of local populations; and, (vii) greater awareness of environmental health issues related to solid waste management.

Specific city-based issues include: (i) Altay’s decision to adopt a more demand-based approach to urban planning and undertaking a more robust cost-benefit analysis of a proposed by-pass road because of negative environmental and social impacts; (ii) Changji’s decision to focus more attention on MMT and road safety issues because of the projected increase in motorized vehicle users; (iii) Hami’s decision not to demolish a mosque and undertaking to be more sensitive to issues associated with resettlement and ethnic minority development issues; (iv) Kuytun’s decision to pay more attention to the ―floating population‖ and modifying the Master Plan to improve transport connectivity; and, (v) Turpan’s decision to look more carefully at proposed road alignments, proactive approach to HIV/AIDS awareness, integrated learning approach to issues relevant to environmental studies, and skill training for Uyghur women to provide local goods and services to tourists.

Supplementary Appendix M 1

1. INTRODUCTORY BACKGROUND

1.1 Proposed Project

The Project consists of five components based on each of five cities located in the Xinjiang Uyghur Autonomous Region: (i) Altay; (ii) Changji; (iii) Hami; (iv) Kuytun; and, (v) Turpan. Within each of these five components are two major sub-components: (i) construction of new roads and upgrading of existing roads and (ii) sanitation improvements to improve environmental health. The most distant city from Urumqi (capital of XUAR) is Altay, which is 670kms in a northeasterly direction and is bordered by Russia, Mongolia and Kazakhstan. The closet city to Urumqi is Changji, which is just over 30kms from the center of Urumqi. Other components include improved traffic planning and management, road safety and possibly a grant-financed component targeted at leveraging the Project to improve the capacity of poorer and more vulnerable groups, especially ethnic minority women, to develop small enterprises of a tourism-related nature in Turpan.

In Altay 19 municipal roads with a total length of 29.26kms, including construction of 3 new roads and the upgrading of 16 existing roads. Five new bridges with a total length of 281 meters will be constructed. Additionally there will be the construction of footpaths, street lighting, controlled pedestrian crossings, and other traffic calming solutions. Two snow clearing machines will also be procured. In relation to sanitation improvements to improve environmental health 10 public toilets/bath-houses, 654 garbage bins, 102 refuse collection points, and 20 garbage collection stations. A variety of vehicles will be purchased to collect and dispose of solid waste materials. As part of the environmental improvement sub- component an awareness and participation program targeted at the local population linking solid waste management with environmental improvements will be implemented. The Project will also support road safety awareness initiatives in Altay with an emphasis on multi-modal forms of transportation including the importance of non-motorized transport (NMT). The Project will also support the institutional capacity of the Altay Construction Bureau to implement all aspects of the Project, including the proactive implementation of social safeguard provisions associated with resettlement and ethnic minority development issues

In Changji 9 new municipal roads with a total length of 23.24kms will be constructed. There will also be a new bridge of 32 meters in length. Additionally, as for Altay there will be a range of other traffic safety measures financed by the Project, 2 snow clearing machines, and a range of road maintenance equipment. Eight public toilets, 394 garbage bins, and 33 refuse collection points will be included as part of the environmental improvement sub- component to improve environmental health. As part of this sub-component an awareness and participation program targeted at the local population linking solid waste management with environmental improvements will be implemented. A variety of vehicles will be purchased to collect and dispose of solid waste materials. The Project will also support road safety awareness initiatives in Changji with an emphasis on multi-modal forms of transportation, including the importance of NMT. As with Altay the Project in Changji will address the institutional capacity of the Changji Construction Committee to implement all aspects of the Project, including the proactive implementation of social safeguard provisions associated with resettlement and ethnic minority development issues.

2 Supplementary Appendix M

Map of China (Xinjiang Uyghur Autonomous Region)

In Hami 3 municipal roads with a total length of 9.02kms will be improved. Additionally 3 culverts will be constructed. As with both Altay and Changji there will be range of traffic safety measures financed by the Project and a range of road maintenance equipment procured. One-hundred and eighty-two dustbins will be provided as part of the environmental improvement sub-component to improve environmental health along with 2 street cleaning trucks. Additionally, as part of this sub-component an awareness and participation program targeted at the local population linking solid waste management with environmental improvements will be implemented. The Project will also support road safety awareness initiatives in Hami with an emphasis on multi-modal forms of transportation, including the importance of NMT. As with Altay and Changji the Project in Hami will address the institutional capacity of the Hami Construction Bureau to implement all aspects of the Project, including the proactive implementation of social safeguard provisions associated with resettlement and ethnic minority development issues.

In Kuytun 13 municipal roads with a total length of 23.6kms will be upgraded and will include 2 trunk roads, 2 sub-trunk roads, and 9 branch roads. Additionally 2 bridges each of 10 Supplementary Appendix M 3 meters in length will be constructed. As with Altay, Changji and Hami there will be a range of traffic safety measures financed by the Project and a range of road maintenance equipment procured. Eleven public toilets will be constructed under the environmental improvement sub-component to improve environmental health along with 30 refuse collection points. Additionally 480 garbage bins and 4 garbage compaction trucks will be provided and an awareness and participation program targeted at the local population linking solid waste management with environmental improvements will be implemented. The Project will also support road safety awareness initiatives in Kuytun with an emphasis on multi-modal forms of transportation, including the importance of NMT. As with Altay, Changji and Hami the Project in Kuytun will address the institutional capacity of the Kuytun Construction Bureau to implement all aspects of the Project, which for Kuytun because there is no resettlement will only involve social safeguard issues associated with ethnic minority development issues. Notwithstanding the lack of resettlement issues in Kuytun, the Project will also support the Kuytun Construction Bureau to institutionalize the capacity in future to address social safeguard issues associated with resettlement.

In Turpan 14 municipal roads with a total length of 22.76kms will be constructed and will include 5 trunk roads, 7 sub-trunk roads, and 2 branch roads. Additionally 2 culverts will be constructed. As with Altay, Changji, Hami and Kuytun there will be a range of traffic safety measures financed by the Project and a range of road maintenance equipment procured. Eleven public toilets will be constructed under the environmental improvement sub- component to improve environmental health along with 26 refuse collection points. This sub- component also includes the procurement of 502 garbage bins, 130 garbage containers, 5 garbage compaction trucks, 4 street cleaning trucks, and 2 sprinkling vehicles. It also includes an awareness and participation program targeted at the local population linking solid waste management with environmental improvements. As with Altay, Changji, Hami and Kuytun the Project in Turpan will also facilitate the strengthening of the Turpan Construction Bureau to implement all aspects of the Project, including the proactive implementation of social safeguard provisions associated with resettlement and ethnic minority development issues.

The rationale for the Project in each of the five cities is that it will improve the road network as part of a broader strategy to ensure sustainable development is socially inclusive through the multiplier effects of increased levels of economic activity. Greater levels of investment in these five cities will lead to increased opportunities for the local population, which with the range of social sector initiatives being financed by a range of investment projects, both nationally and internationally. Hence the Project also has a pro-poor approach embedded in it. The Project bases this rationale on the strategic location of the XUAR to the emerging markets of Central Asia and the rapidly growing economies Russia and other CIS states. The Project also focuses on the provision of sustainable urban infrastructure through the delivery of tangible benefits to each of the five cities’ environments by enabling local municipal authorities to more effectively manage the disposal of solid waste, a reduction in dust from hitherto unsealed roads that will be upgraded, and a general reduction in street litter. The Project also emphasizes the importance of the awareness by the local population and active participation in the management of solid waste. Integrated traffic management operations and road safety awareness programs are also designed to make each of these five cities more habitable.

1.2 Purpose of the Social and Poverty Assessment

This SPA is being prepared to address issues associated with a number of key project design aspects. To determine whether the Project is feasible from a social and poverty perspective it is necessary to (1) analyze the constraints and opportunities related to the

4 Supplementary Appendix M attainment of social development objectives and (2) design development strategies to ensure that gender, ethnic and poverty issues are addressed.

Within the specific social contexts of this Project’s environment in each of the five cities it is necessary to (1) assess social relationships on an individual, group, and institutional basis; (2) understand the dynamic processes underlying these relationships; (3) draw attention to questions of social equity and social inclusion; and, (4) demonstrate how and if the Project is responsive to community needs. To achieve these four objectives the SPA identifies the concerns, needs and priorities of key beneficiaries and stakeholders. To ensure this occurs, the SPA has included the poorest and most vulnerable groups, especially ethnic minorities, the very young and old, people who are physically or intellectually impaired, and single adult households.

Other purposes of the SPA include: (1) attempts to maximize Project benefits to ensure all stakeholders can access the economic and social benefits; (2) sensitivity to potential Project related risks such as diminished livelihoods of people affected by involuntary resettlement; and, (3) providing an analytical framework to ensure the Project’s outcomes and impacts are clearly understood.

This SPA adopts the following three approaches: (1) urban transport and environmental approaches in each of the five cities should be supported by all stakeholders and beneficiaries; (2) different stakeholders and beneficiaries have different priorities but the Project should accommodate these differences where possible; and, (3) proactively ensure that the positive impacts outweigh the negative impacts.

Supplementary Appendix M 5

2. OBJECTIVES, APPROACH AND METHODOLOGY

2.1 Defining the Beneficiaries

The Project in its broadest context argues that all people living in each of the five cities, including those residing in peri-urban areas of these cities are ultimately the beneficiaries of this Project because the transport and environmental improvements are designed to facilitate greater levels of economic opportunity, make it easier for residents to move around the city whether for employment, educational, healthcare or cultural purposes, and generally improve the physical quality of life. As argued in the previous section the Project aims to make an important contribution to rendering each of the five cities economically, socially and environmentally more habitable cities to live in.

In discussions with the PMO in all five cities there were attempts to more narrowly define the beneficiaries on their behalf by arguing that only people living in the cities who were totally reliant on non-agricultural forms of income should be classified as beneficiaries. However, the Project considered this to be a very narrow and misplaced understanding of urbanity in each of the five cities using the following points to argue for more expansive concept of urbanity and hence beneficiaries in the Project cities1:

Many (poor and non-poor) urban households have rural components to their livelihoods. In many urban centers, the whole basis for prosperity is a combination of rural demand for goods and services and the value that is derived from local crops. The urban labor market may include a significant number of rural commuters or rural dwellers who work seasonally in urban centers. Urban boundaries may be drawn in such a way that they include large areas of agricultural land and significant proportions of the urban labor force working in agriculture.

It was also considered by the Project that if the PMO definition of urbanity in each of the five cities, but especially in Turpan was accepted, there would be significantly lower numbers of ethnic minority people who could potentially derive benefits from this Project.

In defining the beneficiaries more broadly than the PMO’s in each of the five cities this SPA recognizes that there will be differential impacts on different socio-economic groups influenced by gender, ethnicity and poverty and vulnerability considerations. These differential impacts are analyzed throughout the remaining SPA but here it is important to ensure that the SPA identifies the fact that it is necessary to focus not simply on generalized impacts but also specific impacts, including most importantly impacts that might be specific to one or more cities but not to the whole five cities.

A matrix has been prepared that summarizes the social and poverty impacts of the Project and is attached as an appendix (see Appendix I – Summary Social and Poverty Impact Matrix of the Project). The matrix suggests that the most positive poverty impacts in relation to improved urban transport relate to the safer use of city roads by poor and vulnerable groups, which enables easier access to schools, hospitals, workplaces, markets, cultural and recreational venues. These improvements include: (i) better road junction control and more systematic enforcement of traffic rules that make it easier for pedestrians to share junction use with vehicle users; (ii) clearer definition of main and minor roads to more effectively

1 For a good analytical discussion of urban-rural linkages see: David Satterthwaite and Cecila Tacoli. 2003. Rural-Urban Transformation and the Links between Urban and Rural Development, London/Washington: UK Department for International Development (DFID) and World Bank

6 Supplementary Appendix M manage road traffic; (iii) improved traffic forecasting that would highlight multi-modal forms of transport use; (iv) junction configurations to provide shortest pedestrian crossing facilities and proper channelizing of vehicular traffic; (v) least cost options freeing up investment finance for other purposes; (vi) design works focused on road alignments, sightlines, and visibilities at junctions and curved road sections; (vii) location of bus stops and associated pedestrian crossings near schools, hospitals, workplaces, markets, cultural and recreational venues; (viii) road design to ensure easier access for users to public transport; (ix) street lighting, pedestrian walkways, and traffic calming measures; and, (x) capacity building in areas such as road safety and rule enforcement and social safeguards.

The benefits of the improved urban transport sub-components outlined above do not always appear to have a direct or explicit impact on poverty reduction but indirectly all of the above benefits are likely to have a positive impact overall. The economic analysis undertaken by the TA also argues that without necessary transport improvements it will be more difficult to attract investment, which would provide the necessary level of economic development to absorb at least some of the labor market entrants from poor and vulnerable groups. This analysis is used in the SPA to demonstrate that employment generation and income earnings during the Project construction period will have a significant impact on poverty reduction for poor and vulnerable households if assurances are provided that priority will be accorded these groups. There are also likely to be significant ongoing benefits in the post- Project period.

The benefits of the environmental sanitation improvements sub-component are primarily related to improvements in public hygiene. However, the benefits also have some specific impacts as follows: (i) meeting an unmet demand for public toilets (and public bath-houses in one of the cities); (ii) improvements to both household and public hygiene through the more effective management of solid waste disposal; (iii) improvements to the aesthetic appearance of the cities; and, (iv) raising the awareness of each city’s population and facilitating greater levels of participation in solid waste management. The Health Impact Analysis (see Appendix G) will attempt to quantify the impacts of this sub-component on the livelihoods of people living in each of the five cities.

There are some negative impacts generated by this Project that are analyzed in the SPA. These negative impacts include: (i) loss of housing and other physical structures and loss of land acquired for road widening or new road construction; (ii) disruption of existing social networks as a result of physical resettlement; (iii) difficulties associated with income restoration or pursuance of alternative livelihoods; (iv) an increase in noise and vehicle emission levels because of an increase in vehicular traffic; (v) compromises to traditional urban landscapes; and, (vi) social risks associated with STDs/HIV/AIDS and noise and dust levels during the construction of civil works. It also needs to be noted that the negative impacts are generally felt disproportionately by ethnic minority groups in each of the five cities than the Han population. Moreover, poorer and more vulnerable households are impacted upon negatively to a greater extent than other households in most instances.

The SPA identifies these impacts and this has been an underlying assumption of the methodology utilized that such impacts would be identified because without identifying impacts grounded in each of the five cities it is more difficult to develop the principal social safeguard document based on the SPA, the Ethnic Minority Development Plan (EMDP), and also the Social Action Plan (SAP). They are also reflected in the Summary Poverty Reduction and Social Strategy (SPRSS), which is an appendix to the Report and Recommendations to the President (RRP) and is included as an appendix to the SPA (see Appendix II).

2.2 Socioeconomic Survey

Supplementary Appendix M 7

The Social Impact Assessment involved 806 households in the five cities of the Project area (see questionnaire in Appendix III). The number of interviews per city was decided based on the population size of each town as per the table below. Additionally, the households were stratified according to gender (at least 50% of the household interviews will be conducted with women), ethnicity (in direct proportion to the number of different ethnic groups in each town) and poverty (using the criteria adopted to identify urban poverty in the region).2 Other criteria used included single-adult households, most notably households where male spouses have either divorced or abandoned their female spousal partners, and households where the major breadwinners are either elderly or physically or intellectually impaired.3

Table 1 - Stratified Sample of Households Altay Changji Hami Kuytun Turpan GENERAL POPULATION Population 227,778 403,218 418,918 302,089 260,271 Male 34 75 64 71 14 Female 35 76 64 71 15 Poor 10.0% 03.1% 06.3% 04.1% 04.8% Households ETHNIC MINORITY GROUPS Population 88,903 89,176 118,241 15,216 204,817 Male 22 25 39 4 51 Female 22 25 44 4 53 Poor 22.3% 05.9% 13.1% 6.4% 14.8% Households Totals 113 201 209 150 133 Source: Estimates based on TA Consultant’s Analysis of Demographic Data

Training in undertaking the household interviews was provided to the local PMO4 in each of the five Project cities. The questionnaire was field-tested by the consultants to ensure it was relevant and respondents felt comfortable with the questions being asked. Each question included in the questionnaire was explained carefully to the local enumerators numbering 50 (10 in each of the 5 towns, including at least 40% of female enumerators and in towns where ethnic minorities live there will also be ethnic minority enumerators). The enumerators were provided with one day field-based training. This training was provided by the local consultants.

In the field 5 supervisors from the Institute of Social Development at Hohai University provided the quality assurance necessary to ensure that the questionnaires were completed. They also ensured that the local PMO surveyors target households according to the stratification sampling techniques identified in the previous section. Finally, in relation to the household surveys the field supervisors collected and collated all survey data so that it could be utilized in this SPA

The Survey commenced on Monday the 18th of February and was concluded on Saturday the 15th of March 2007. The data was available for processing early in April and dummy tables were provided by the TA Consultants to ensure that data collected could be more easily analyzed. These dummy tables were completed by the end of April, although it was nearly mid-May before the tables were available in English for use in the SPA.

2 As the analysis of the household income and expenditure from the SES demonstrates in Section 3, using different criteria of poverty than that adopted by XUAR, there are more poor (relatively and absolutely) households in the five cities than the above sample indicates. 3 The percentages of each of these categories could not be determined prior to the commencement of the SES because the TA Consultants were not provided with adequate data and it could not be determined by analyzing existing databases. 4 There were some reservations about contracting this work to the local PMO in each of the five cities but the TA Consultants considered this would provide a degree of capacity building in socioeconomic surveys that PMO staff had not undertaken in the past.

8 Supplementary Appendix M

2.3 Stakeholder Workshops

Stakeholder consultations were undertaken from Friday the 15th of February and were concluded on Monday the 3rd of March. These consultations were undertaken in each of the five Project cities and were organized by the local PMOs, chaired by either the PMO or a Deputy Mayor, and the TA Consultants served as resource persons. The primary purpose of the consultation workshops was to assess the institutional capacities of the stakeholders and evaluate their interest and importance in and influence on Project planning, implementation, and monitoring and evaluation. Based on this, representation by the stakeholder groups has been recommend for inclusion in the participatory processes of the Project being suggested by this SPA. Another purpose of the consultation workshops and meetings was to gather information on their views and expectations of the Project.

The major stakeholders identified and that participated in the stakeholder workshops include the following: representatives of the local beneficiary population, enterprises and businesses, the local PMOs, Ethnic Minorities and Religious Affairs Bureau, Civil Affairs Bureau, Poverty Alleviation Office (poverty in peri-urban areas), Education Bureau, Health Bureau, Labor and Social Security Bureau, Tourism Bureau, Environmental Protection Bureau, Public Security Bureau (Traffic Division), Islamic Association, Mosque Committee (in Hami because of proposed mosque demolition), and All China Women’s Federation.

The issues covered by the consultation workshops included: (i) information and knowledge of the Project; (ii) institutional roles and responsibilities in relation to the Project; (iii) support to the Project; (iv) views, concerns and expectations about the Project; (v) interest in participating in planning, implementation and monitoring and evaluation; (vi) available human resources and institutional experience and expertise in Project planning, implementation, and monitoring and evaluation; and, (vii) desired role in the Project and capacity building needs, if representation was desired as a core stakeholder.

2.4 Focus Group Discussions

Additionally a more qualitative and participatory approach to the collection of information and sharing of ideas involving 35 Focus Group Discussions (FGD) with up to 20 participants in each of the FGD were facilitated (see topics of the FGD in Appendix IV). The issues discussed included: improving access to local communities, public transport options, road safety programs, the management of solid waste, air and water quality, urbanization and modernity (less abstract with emphasis on kinship and community-based social networks), perceptions of poverty, and the economic and social impact of the Project on local communities, including different groups within each of these communities. These FGD included the following:

Male and female groups Female only groups Poor and vulnerable groups Ethnic minority groups Public sector groups Private sector groups

Some 525 people were invited to participate in the FGD. The PMO in each of the five cities identified approximately half of these FGD participants and the FGD facilitators from the TA Team identified the other half. This process was necessary because had all FGD participants been invited by the PMO’s it is likely that would have been less representative sociologically of the community than if the TA Consultants had not been actively involved in Supplementary Appendix M 9 the identification process. However, in making this point each PMO did try to identify different stakeholders: getting women to participate was sometimes a problem if FGDs were conducted at times when women were busy undertaking household-based activities, such as meal preparation, and every attempt was made to encourage the PMOs to be sensitive to this issue.

The TA Consultants facilitated most of the FGD although because it an attempt was made to build the capacity of the local PMO staff in each of the five cities to facilitate FGDs in future some opportunities were afforded these staff members to also facilitate FGDs. Typically the FGD lasted from 1.5 hours to 2 hours although in some instances they lasted up to 3 hours at the request of FGD participants. With ethnic minority FGD participants they were afforded the opportunity to use their own language if they so desired and the TA Team provided interpreters in ethnic minority languages, primarily Uyghur and Kazak, to ensure that FGD participants unable to speak Chinese could actively participate in the FGDs.

FGD participants were provided with an honorarium to compensate them for time spent participating in the FGD although ethnic minority FGD participants, especially the Uyghur preferred small gifts such as tea, biscuits and sweets.

2.5 Key Informant Interviews

Interviews were held with 15 key informants in each of the five cities. The interviews were largely unstructured and typically took place over a meal or some other form of refreshment. These key informants included people who had a good understanding of local economic and social developments including the historical dynamics of settlement in these cities. Interviews were also held with key informants who had a good knowledge of local ethnic minority development issues. And interviews were also held with key informants from the private sector that did not have time to participate in the FGDs. The purpose of the key informant interviews was to obtain deeper qualitative insights into issues of relevance to this SPA. However, their opinion as to whether the Project would also have a positive economic and social impact on the city as a whole and different socio-economic groups residing in the city was also sought.

2.6 Secondary Information Collection

Secondary information was collected from relevant bureaus in each of the Project cities, design institutes (Xinjiang Municipal Architecture Design Institute, Le-High Design and Research Institute, and Xinjiang Ecology and Geology Research Institute), and universities. Additionally the statistical data provided by the Statistics Bureau of Xinjiang Uyghur Autonomous Region has also been collected. This secondary information is used in this SPA to provide additional socio-economic data relating to living standards of urban and peri-urban dwellers in the five Project cities. It also provides a comparative baseline whereby Project outcomes can be assessed against the improvement in living standards in other smaller cities of XUAR.

10 Supplementary Appendix M

3. UNIQUE CONTEXTS OF XINJIANG

3.1 History of Settlement

The ―known‖ history of Xinjiang dates back to the 3rd Millennium BC. Numerous empires including the Xiongnu, Han, Gorturks, Tang, Uyghur and Mongol have controlled this region, with the Uyghur being the most prominent before the region came under China’s effective control following the establishment of the People’s Republic of China in 1949. When the region was settled by people from Eastern China during the Qing Dynasty in the mid-1700s the region acquired the name of Xinjiang. However, this history of settlement in Xinjiang is not just about the predominance of the Uyghur. Han Chinese settled in Xinjiang more than 300 years ago, especially in modern day Urumqi and Changji but also in other areas of northern and southern Xinjiang. The Hui Muslims arrived from places such as Gansu and Ningxia at about the same time that the Qing Dynasty held sway over the region and other groups such as the Kazaks and to a lesser extent other peoples of Central Asia including Kyrgyz, Uzbeks, Tajiks and Mongols also have a history of settlement in Xinjiang that predates sustained Han Chinese in-migration to Xinjiang.

The more recent history of settlement in Xinjiang began in the 1950s when the government established the Xinjiang Production and Construction Corps (XPCC) to establish farms and build towns and cities. Most of the XPCC focus was on the sparsely populated areas of the Taklimakan and Gurbantungutt Deserts but one of the five Project cities, Kuitan, was established as part of the activities of the XPCC. It was disbanded during the Cultural Revolution in 1975 and re-established in 1981.

In relation to the cities of Xinjiang the most recent history of settlement is more heavily weighted in favor of the Han Chinese than other ethnic minority groups, which is hardly surprising because as ―private‖ migrants they came to Xinjiang without access to land and in many instances capital. What such migrants brought with them were skills acquired elsewhere in China not readily available in Xinjiang and a determination to be economically successful. This is not an unusual story and in many ways replicates the experiences of migrants the world over.

3.2 Natural Resources Bases

Historically water was the most important natural resource in Xinjiang. The most sustainable settlements were located in the oases of the seemingly forbidden desert landscapes of the region. Perhaps the most famous of these oases was the area around Turpan where underground channels (karez) were used to convey water from aquifers in pre-mountainous alluvial fans to lower-elevation farmlands. But global warming is having a serious impact on the sustainability of these oases because they rely on the mountain glaciers that provide water for both agricultural purposes and human consumption. The Intergovernmental Panel on Climate Change notes that global warming in Xinjiang is three times the average rate of warning in the Northern Hemisphere and since the 1980s temperatures have been rising by as much as 1.6 Celsius. Retreating glaciers in Xinjiang pose a very serious challenge to the intensification of agriculture, industrialization, and population increase.

However, not all of Xinjiang is founded on oases and this included the northern areas of the region where two of the Project cities, Altay and Kuitan are located. In northern Xinjiang a much harsher climate with longer winters and shorter growing seasons has always been the natural resource constraint to the uses with which water could be put to elsewhere in the region. While the availability of water is not a major issue in a city like Altay, the management of this water during the spring thaw is and impacts upon the livelihoods of people downstream of the higher elevations. In a city like Kuitan, which was never established to promote agriculture has serious water shortages during the summer months. Supplementary Appendix M 11

Therefore it can be surmised that water issues will become a more pronounced environmental issue because of the more recent economic and social development of this region.

Afforestation projects in the region, including grain for green projects and the establishment of protection forests have increased by over 1 million hectares since 2001 as attempts are made to arrest increasing desertification. However, grazing and pasture land, which is critical to cattle and sheep farming in the region, has been incrementally decreasing over the past decade from 6,012,000 hectares in 1997 to 5,112,470 hectares in 2007: that is a 15% decrease in grazing and pasture land. This land is not being used for other purposes but rather has had to be abandoned because the pastures do not provide sufficient nutrients during spring and summer for cattle and sheep.

Of equal importance the region contains 20% of China’s potential petroleum reserves with an estimated 20-40 billion tons of oil (140 billion to 280 billion barrels of oil and at present China uses 3.06 billion barrels of oil per year) and 12 trillion meters cube of natural gas. At present up to 100 million tons of oil are being discovered every year. It is very clear that Xinjiang is of critical importance to China’s continued economic development, even if it reduces its dependence on oil. The natural gas is being used to replace coal in heating many cities on the Eastern Seaboard thereby improving the local environments of these cities.

In addition to oil and gas there are nearly 140 types of minerals, or 80% of all types of minerals in China, found in Xinjiang. Major mineral resources include iron ore, coal, sodium salt, limestone, potassium, and gold, although for instance with a mineral such as iron ore it is still apparently cheaper to ship iron ore from Western Australia to the Eastern Seaboard of China than to mine and process iron ore in Xinjiang. Thus while Xinjiang might have abundant natural mineral resources the technologies to exploit these resources are still very expensive, although this does not mean in the foreseeable future that these resources will not be more extensively exploited.

To conclude the region does have an abundance of some key natural resources that will provide even greater opportunities for economic development as many of the downstream revenue and ancillary benefits were to be invested within the region. However, the region is not without its environmental problems and its vastness needs to be juxtaposed against the context where population densities per square kilometer in human settlements throughout the region are double those of the national average for China. Xinjiang is not over-populated but it may be rather difficult to sustain population increases at the existing rate without compromising its environmental integrity: the major environmental issue is the lack of water to sustain the development of this region.

3.3 Ethnic Diversity

Xinjiang is an ethnically diverse region as the Table 2 demonstrates. There are at least 13 major ethnic groups in Xinjiang ranging from the most numerous Uyghur who constitute 45.92% of the population to the least numerous Tartar who constitute 0.02% of the population. Of these 13 major ethnic groups 9 originated in Central Asia and the other 4, including of course the Han Chinese in areas of China to the east of Xinjiang. The numerically most significant ethnic groups in Xinjiang apart from the Uyghur and Han are the Kazak from Central Asia and Hui from Ningxia and Gansu. While the Kazak and Hui are Muslims as with the Uyghur culturally the Kazak and Uyghur have Turkic origins whereas the Hui are culturally quite close to the Han Chinese on a historical basis.

Of all major ethnic groups in China the Uyghur are probably the most dissimilar to the Han both culturally and linguistically. The language of the Uyghur is totally different to and their

12 Supplementary Appendix M arts are more like those of the Turks than those of the Chinese, While Islam is the major religion in Xinjiang, the Uyghur are more ―Islamic‖ than either the Kazaks who were traditionally more nomadic than the Uyghur and the Hui Muslims.

Table 2 - Population of Major Ethnic Groups in Xinjiang (2006) ETHNIC GROUP NUMBER PERCENTAGE Uyghur 9,413,796 45.92 Han 8,121,588 39.61 Kazak 1,434,969 6.99 Hui 909,626 4.43 Kyrgyz 175,868 0.85 Mongolian 174,641 0.85 Tajik 44,680 0.21 Xibo 41,934 0.20 Manchu 25,156 0.12 Uzbek 15,976 0.07 Russian 11,395 0.05 Daur 6,568 0.03 Tartar 4,693 0.02 Others 119,110 0.58 TOTAL 20,500,000 100.00 Source: Table 4.7, Xinjiang Statistical Yearbook 2007, pp.82-3

In the past the Uyghur in Xinjiang, indeed all other peoples with their historical origins in Central Asia, were economically and socially less well off than people living in those republics of the former Soviet Union but with the demise of the Soviet Union and independence in these former Soviet republics living standards had declined quite dramatically, whereas the opposite has occurred in Xinjiang. A degree of religious autonomy and linguistic autonomy is permitted in Xinjiang but with rising levels of prosperity urbanized and ―middle-class‖ Uyghur and other minorities are becoming less religious and more like other ―middle class‖ Chinese.

The path to economic prosperity in Xinjiang for the Uyghur and other ethnic minority groups is not simply to retain fluency in their own language but also to become fluent in the Chinese language. While it is possible to receive a university education in at least the Uyghur language this is not an option that makes available opportunities in the new economy that is becoming to characterize Xinjiang. It also means that opportunities are more likely to be located in the cities of Xinjiang, including the five Project cities than in the countryside.

3.4 Poverty Issues

Poverty is clearly a multi-dimensional concept that not only encompasses objective and qualitative characteristics such as income and consumption poverty or asset poor poverty but also subjective characteristics of poverty including most importantly people’s perceptions of poverty. In Xinjiang until very recently it was simply asserted that this was one of the poorest regions in China, not least of all because of its distance from the Eastern Seaboard and the large numbers of ethnic minorities living in Xinjiang, especially in rural areas. By Eastern Seaboard standards Xinjiang was clearly a relatively poor region. Even by comparison with neighboring Central Asian republics within the former Soviet Union it was also relatively poor, although not by comparison with neighboring Afghanistan, Pakistan or the disputed territory of Kashmir.

However, whether the population was living in abject poverty is a moot point. Most certainly in relation to meeting basic foodstuffs the local communities in Xinjiang had few difficulties. Despite the longish winters the summers were hot enough and in the oases there was sufficient water to ensure food crops could be irrigated. There were also vast tracts of grazing land where sheep and to a lesser extent cattle could be grazed for at least six Supplementary Appendix M 13 months of the year. What Xinjiang lacked was secular schools where its young people, especially girls, could receive an education that would enable them to work in non- agricultural related fields of employment. There was also a less than adequate system of healthcare that people could readily access. Yet for all of this there were probably significant levels of social capital in most local communities that ensured less well-off people were taken care of.

The quantitative aspects of poverty became more important in recent times as cities in Xinjiang became more like cities in the rest of China. Not only did people from outside the region choose to settle in these cities but the local population who experienced the cities being built around their semi-rural, semi-urban communities (historically these were not peri- urban communities) came to realize there would be other non-agricultural economic opportunities available. Such opportunities were accompanied by the establishment of schools more in-tune with the national syllabus rather than localized syllabi that revolved around localized socially and culturally important knowledge. Additionally, non-traditional healthcare became more widely available in a socio-medico context where traditional healthcare was not perhaps as efficacious as it was historically because of competing models of healthcare.

Where urban poverty set in for local people was when arable land they were farming was incorporated into the cities via the construction of new roads and non-rural physical structures (primarily apartments) to cater for the needs of the urban population. This did not mean that all local people lost all of their land or were rendered destitute as a result of this process of urbanization because some/many local households benefited from these new rural-urban linkages. But it does mean that households who were probably less well-off than their neighbors before urbanization assumed an increasing importance became poorer as a result. This poverty more than likely intensified as such households lost a good deal of their existing livelihood assets, social capital being the most important of these assets.

In the context of this Project the SPA will focus on urban poverty issues in Xinjiang rather than rural poverty issues because the Project is located in cities not rural townships even though there are linkages between urban and rural areas in each of the five cities. China does not have an official urban poverty line and neither does the XUAR. Rather each city is required to estimate its own Minimum Standard of Living (MSL) based on the direct method of costing 20 items of goods and services, which are considered necessary to meet basic needs.

The food poverty line is based on the calorie content of the food purchased based on a minimum of 2,100 calories per day but it does not include the cost of purchasing uncooked food and excludes all non-food expenditure including that incurred in cooking food. The general poverty line refers to all non-food expenditure. In 2003 the estimated national food poverty line per capita was CNY 1,392 and for Xinjiang CNY 1,117 per annum. The general poverty line was CNY 2,310 and for Xinjiang CNY 1,772. Translated into US$ figures the Xinjiang food poverty line in 2003 was US$0.36 per day per capita and the general poverty line was US$0.58 per day per capita.

In terms of provincial poverty patterns Xinjiang is considered above average along with 8 other provinces or regions (Gansu, Hainan, Heilongjiang, Inner Mongolia, Liaoning, Jilin, Shanxi, and Tianjin) but in Urumqi the capital of XUAR while poverty rates among the local population are not the highest in the country among immigrants they are significantly higher than elsewhere in China. This is partly because Urumqi is perceived as a city with new economic opportunities not available to the poor in other inland regions of China. Whether there is a causal connection with the WDS and the ―opening‖ up of this region over the past decade is beyond the scope of this SPA. Rather it is necessary to focus on the MLS because this is highly relevant to official estimates of poverty in the five Project cities.

14 Supplementary Appendix M

The Ministry of Civil Affairs found in a 2000-01 survey that coverage was very low: something like 25% of urban households who were classified as being absolutely poor were able to receive assistance. Hence in the five Project cities it is very likely that coverage is also low and it is likely that three times as many households are living in absolute poverty by MLS criteria than are actually receiving assistance. Analytical studies5 of the MLS in China suggest very clearly that much of the estimates of urban poverty at the local level depend to a large extent on informed guesses. Therefore there are loopholes in the diagnosis of urban poverty. That aside the actual MLS benefit per person is very low and does not cover expenditure on healthcare or education, which are two major items of non-food expenditure for many households.

3.5 Development Policies

China’s Western Development Strategy (WDS) – referred to in Chinese as Xibu Da Kaifa - was first formulated in the summer of 1989. It was developed at the time when there was a strong argument in China for investing public money in infrastructure by way of ―fiscal stimulus‖ – creating jobs and putting more consumer cash into the market – for an economy that at the time was beginning to slow down. The WDS was also based on a strong determination by the government to address the growing regional disparities between the Eastern Seaboard and Western China. It was targeted at six provinces (Sichuan, Guizhou, Yunnan, Shaanxi, Gansu and Qinghai), three ethnic minority autonomous regions (Tibet, Ningxia and Xinjiang) and one municipality (Chongqing). The western region of China included in the WDS accounts for over 57% of China’s population.

Underlying the WDS has been the focus on the following four areas: To develop an overall plan for the development of the western region of China; To formulate policy and measures for accelerating the pace of development in the western region; To increase the rate of infrastructure in the western regions; To undertake environmental rectification and protection.

Policy objectives since the WDS was implemented include the following: To develop the policy of opening up to the outside and implementation of reform; To develop a variety of enterprises including individual, private and foreign-funded forms of ownership and make enterprise the catalyst for development; To improve the investment climate; To expand the scope of foreign investment, develop an export-orientated economy and increased foreign cooperation; To reform government; To place an emphasis on developing science, technology and education and attracting talented and educated people. China has argued that the WDS has been highly successful, which it has in provinces such as Sichuan and Yunnan and in the municipality of Chongqing. However, in the XUAR according to official data the region’s average annual growth rates in primary, secondary and tertiary industry were actually higher between 1991-95 at 11.8% than the 10.2% reported for the five years from 2001-06. Nevertheless, the WDS does appear to have arrested the slowdown that XUAR experienced between 1995 and 2000 where the average annual growth rate was recorded at 7.7%.

5 See for instance: Altar Hussain.2003. Urban Poverty in China: Measurement, Patterns and Policies. Geneva: International Labour Office and Li Zou.2007. ―Asset Building in the Xinjiang Uyghur Autonomous Region of China‖, CSD Working Paper 07-16. St. Louis, Washington University: Center for Social Development. Supplementary Appendix M 15

Some of the extant issues associated with the WDS include the general tendency to concentrate new economic growth in the urban areas with ribbon development projects along major transport routes. More remote areas are likely to be left untouched on a short- term basis. Improved infrastructure will shorten supply lines but western areas such as Xinjiang do not have any comparative advantage vis-à-vis the more highly developed Eastern Seaboard region of China, except in relation to Central Asia. The type of investment that generates significant levels of non-agricultural based economic development in the manufacturing and service areas may be part of this overall strategy but the reality is that much of the new investment to date has focused on the extractive industries, notably oil, gas, and minerals. The local gains here are largely confined to increased employment opportunities and the creation of secondary and tertiary service industries.

Socially, the impact of the WDS has or will see unevenly distributed costs and benefits, but this is not something unique to China: it is happening everywhere in the largely post- traditional and hybrid world of globalization. However, it appears that the government is determined to protect where possible local environments in the western region. Polluting industries such as paper mills and fertilizer plants are prepared to relocate to the western region although in Xinjiang the major industrial growth has been in chemicals (sulfuric acid, caustic soda, synthetic ammonia, farm nitrogen phosphate and potassium, and calcium carbide) rather than in paper mills. Individual cities want to attract any type of investment and are prepared to compete against other cities and it is extremely difficult to close the door on non-state owned polluting industries. This leaves the government with a dilemma because on the one hand it wants to promote economic growth but on the other hand it wants to environmentally safeguard the environment in the western region.6

At the 16th Central Committee of the Communist Party of China in October 2005 new 11th Five-Year Guidelines were prepared but were ultimately referred to as ―layout‖ or ―program‖ because it was considered necessary to allocate important resources to more specific investments rather than continuing to place emphasis on strategic and macro-level programs.

The layout identified: (a) human-orientated reform (a people-based approach within the context of sustainable development); (b) common prosperity (creation of an enabling environment to ensure more opportunities); (c) incorporation of regional economic development (east to west development with a focus on the Chengdu-Chongqing axis); (d) support for independent innovative capabilities (need to develop core technology and intellectual property); (e) systematic reform (removing institutional fetters to development), and a (f) new development mode (economic growth being the means of development not the goal).

In relation to a Project such as this one this new ―layout‖ or ―program‖ clearly implies that the goals of the Project need to address (a), (b), (e) and (f). People that live in the five cities need to be at the center of this Project not the actual interventions and it is social engineering not traffic engineering that needs to be the prime driver of the Project from a social development perspective. A Project such as this with both its direct and indirect impacts is capable of facilitating a degree of common prosperity. The Project also provides an opportunity to remove the institutional fetters to development by enabling planners to think of how the lives of people living in cities can be improved and what types of economic growth will ensure that these cities are better places to live in. The Project also affords the opportunity to be intellectually innovative by building on local people’s strengths rather than

6 For a good discussion of these issues see: Jane Golley, 2007, ―China’s Western Development Strategy and Nature versus Nurture‖, Journal of Chinese Economic and Business Studies (5:2), pp. 115-129. See also: Colin MacKerras, 2004, op.cit. pp.1-15 and Yue Yao Zhao, 2001, ―Pivot or Periphery? Xinjiang’s Regional Development‖. Asian Ethnicity (2:2), pp. 197-224.

16 Supplementary Appendix M simply focusing on their weaknesses and seeking out synergies that could link the old with the new. Hence the 11th Five-Year ―Guidelines‖ provide a programmatic approach that enables this Project to be integrated with the other developmental approaches being pursued in China.

Supplementary Appendix M 17

4. THE FIVE PROJECT CITIES

It is important in a Project of this nature involving five cities to provide a sufficiently adequate social and poverty analysis of each of the five cities. This is partly because none of the five cities is sufficiently similar to one another either socially or economically to provide a non- differentiated social a poverty analysis for the Project as a whole. Of equal importance the two major Project components in each of these five cities are not wholly identical in nature and reflect the needs and priorities of the Project stakeholders in the five cities.

4.1 Specific Physical and Socio-Historical Characteristics

4.1.1 Altay

Altay is one of the most northern cities in Xinjiang and shares borders with Mongolia, Russia, and Kazakhstan. There is a mountainous region to the north with elevations above 1,000 meters, a mountainous region to the south with elevations between 700 and 1,000 meters, and sandwiched between these mountain ranges an alluvial plain with elevations from 475 meters to 700 meters. There are three rivers with watersheds in Altay that run through Altay City. They are the Kelan, Ergis and Sumudayilike Rivers with a combined length of 667 kilometers and an annual runoff of 6 billion cubic meters. Of the five Project cities Altay is the only one where water resources are neither problematic nor unduly affected by global warming. In the city area there are at least three species of the poplar tree. The average temperature is 4.5C, with a summer high of 37.6C and winter low of -43.5C. There are 153 frost free days with an average frozen depth of 180cm. It is the coldest city of the five Project cities but it also receives the most rainfall at 183mm per annum.

Poplar Trees in Forest Park of Altay City

18 Supplementary Appendix M

The city was only established in 1984 even though the area surrounding Altay was home to Kazak herders for over 1,000 years. There were also some Mongols that settled here because of its close proximity to Mongolia. However, in the immediate vicinity of the actual city it is difficult to see much of the traditional herding culture. Instead it is necessary to travel further afield to the steppe grasslands to understand the historical and contemporary importance of herding to the Kazak people. While Uyghur people also live in Altay this is one of the least Uyghur cities in XUAR. In many respects had it not been for Han settlement and incorporation into the former Soviet Union Altay would have been quite similar in social character to traditional Kazak towns found in Central Asia. During the height of Uyghur power in this region Altay did not feature as an important cultural or economic center. The first recorded settlement of Han only dates back over the past 300 years beginning in the time of the Qing Imperial Dynasty in China. It was at that time Hui also settled in small numbers in Altay.

4.1.2 Changji

Changji is located on the northern route of the Old Silk Road. It is situated in a depression basin to the southeast of the Tianshan Mountains. The highest elevation is 4,562 meters but Changji city’s actual elevation ranges from 450 meters to 550 meters. The average annual temperature is 7.2C, with a summer high of 42.6C and a winter low of -38.2C. Average rainfall is 1739 mm, the number of frost free days 170, and average frozen depth of 101cm. The Santun and Toulunhe Rivers run through the city with a total annual runoff of 546 cubic meters. Within the city the major trees are poplar trees, although Changji is less forested than Altay City.

This city has the oldest recorded history of Han settlement dating back to the Tang Dynasty of 1,400 years ago. Uyghur people first settled in Changji some 200 years before the Han and it was only 300 years ago that Hui began to settle in Changji and today Changji has more of a Hui cultural character than a Uyghur cultural character but there is also some limited Kazak cultural character. Nevertheless, because of Changji’s early encounter with Han culture it is by-and-large with Hami, the most traditionally Han of the Project cities even though Kuytun has a greater percentage of its population being Han than Changji or indeed the other three Project cities.

4.1.3 Hami

Hami is also located on the northern route of the Old Silk Road. It neighbors Gansu Province in the east and Inner Mongolia Autonomous Region in the south and shares 587 kilometers with Mongolia. It has elevated terrain in its center and lower terrain to the north and south, and the Eastern Tianshan mountain range is located also in the north and deserts comprise the eastern and western regions. The center is made up of an oasis and the Tianshan Mountains traverse the region dividing Hami into its southern region and northern river valley and prairie. Water resources are very limited in Hami and annual rainfall is very low at 35mm with average evaporation rate of 3,089 mm, which is the highest of all five Project cities. The average temperature is 9.8C, the highest temperature in summer being 43.9C and lowest in winter -32C. Frost free days number 182, the same as Kuytun, but the average frozen depth is 89cm, second only in less depth to Turpan.

Hami has always occupied a geographic and strategic importance because of its link between Xinjiang and the rest of China. More than 2,200 years during the Han Dynasty it was referred to as Yiwu and during the Tang Dynasty it was referred to as Yizhou. The city itself was established over 1,680 years ago and it was after the Ming Dynasty that Hami gained its present name. This city has come under the combined influence of Uyghur and Han although Hui also migrated here during the Qing Dynasty some 300 years ago.

Supplementary Appendix M 19

4.1.4 Kuytun

Kuytun is located in northwest Xinjiang, north of the Tianshan mountains, the southwestern edge of the Junggar Basin, and the banks of the Kuytun River. Elevations range from 610 meters in the south to 320 meters in the north and from 610 meters in the east to 460 meters in the west. The major source of water in Kuytun is the Kuytun River and natural springs in the northern area of the city. The average annual temperature is 8.9C, with a summer high of 38.8C and winter low of -29C. Average rainfall is 177mm, frost free days 182, and average frozen depth of 138mm.

This city was established in 1975 by the Xinjiang Production and Construction Corp to provide new economic opportunities for Han people from Eastern China. As such it has the least socio-cultural and historical association with the region compared to the other four Project cities. As the analysis unfolds it will become clear why Kuytun has a somewhat more flexible approach to a range of urban planning issues.

4.1.5 Turpan

Turpan is located in the center of the Turpan Basin and to the south of Bogada Peak, the highest peak in the Tiansahan mountain range at 5,000 meters and which is covered in snow the whole year round. Huyoan Mountain traverses the city dividing into north and south with slopes from north to south and elevations ranging from 10 to 110 meters. Turpan in Uyghur means ―the lowest place‖ and in fact Turpan has the lowest elevations in China with some areas below seal level although not in the actual city. However, Turpan is also known as Huo Zhou (place as hot as fire) and each year it has at least 28 days above 40C. Its average temperature is 14C, with a maximum summer temperature of 47.6C and minimum winter temperature of -28.7. Average rainfall is only 16.4mm, the lowest of the Project cities, and an evaporation rate of 2,838mm, the second highest, but an average frozen depth of 50cm, the least deep of all five Project cities. Water for Turpan is supplied by the karez system, one of China’s four great irrigation systems.

The history of Turpan is at least 15,000 years old with archaeological evidence that human beings first inhabited this area. However, Turpan’s known history goes back at least 6,000 years but it was not until the Han Dynasty of 2,200 years ago did it enter Chinese discourses when it was known as Guishi. Turpan has been immortalized in the famous Chinese novel: Flaming Mountain: Journey to the West, and is home to the largest mosque minaret in the region and the ancient cities of Jiaohe and Gaochang. Turpan is the most Uyghur of the five Project cities and the least Han but it is considered to have absorbed Han cultural influences to a much greater extent than the other two famous cities that are quintessentially Uyghur in Kuqa and Kashgar.

4.2 Demographic Characteristics

4.2.1 City Populations

Table 3 provides the official population for each of the five Project cities at the end of 2007. It does not include the population of the ―floating population‖, which is not legally registered to reside in the city, but estimates suggest that in some cities such as Kuytun, this ―floating population‖ might add an additional 40% to the total population. This is an important issue because in any urban planning contexts all of the resident population not just those legally entitled to reside in a particular city need to be targeted if effective urban improvements are going to materialize.

20 Supplementary Appendix M

Table 3 - Household, Population and Land Area of Five Cities Number Year Male Average Land Of End Persons Per Area Households Population Household Altay 70,100 228,700 116,800 3.26 10,829.06 Changji 138,100 411,200 211,400 2.98 8,215.12 Hami 140,800 420,500 216,500 2.99 85,587.23 Kuytun 106,800 305,500 156,400 2.86 1,109.89 Turpan 74,400 263,200 133,300 3.54 13,589.22 Source: Table 4.5, p.77, XUAR Statistical Yearbook, 2007

Table 4 provides the official urban and agricultural population for each of the five Project cities at the end of 2007. The official categories are a little confusing because a distinction is made between the city and peri-urban population and rural settlements under city jurisdiction. In four of the five cities there are substantial numbers of people who are classified as agricultural, ranging from 30.1% in Changji to 67.9% in Turpan. This is important in the context of this Project because the economic and social impacts not only impact upon the urban population but also the peri-urban population. These cities are not self-contained urban enclaves but serve a population that is also non-urban.

Table 4 - Urban and Agricultural Population in Five Cities City and Peri-Urban Population Rural Settlements Under City Jurisdiction Urban Non-Agricultural Rural Agricultural Non-Agricultural Population Population Population Population Population Altay 228,700 133,700 - 79,900 148,800 Changji 411,200 285,200 - 124,100 287,100 Hami 420,500 274,500 - 133,300 287,200 Kuytun 305,500 280,300 - 25,200 280,300 Turpan 263,200 69,200 - 178,600 84,600 Source: Table 4.6, pp.79-80, XUAR Statistical Yearbook, 2007

4.2.2 Ethnic Composition

Table 5 provides official data on the major ethnic groups in each of the five Project cities. If only the aggregate total of the five cities were to be included the Han are numerically more populous than all other ethnic minority groups, constituting 72.6% of the population, which is nearly double the XUAR percentage of the population that is Han. However, when the focus is on each city the ethnic mosaic is somewhat different. The city with the highest percentage of ethnic minority groups is Turpan where 78.6% of the population consists of ethnic minority groups. The city with the lowest percentage of ethnic minority groups is Kuytun where 5% of the population consists of ethnic minority groups. In Altay 39% of the population consists of ethnic minority groups; Changji 22.1%; and, Hami 28.2%. In both Hami and Turpan the major ethnic minority group is the Uyghur, while in Changji and Hami the Hui is the major ethnic minority group, and in Altay the major ethnic minority group is the Kazak.

Table 5 -Population of Major Ethnic Groups in Five Cities Uygur Han Kazak Hui Kyrgyz Mongol Xibo Russian Tajik Uzbek Tartar Manchu Daur Altay 4,970 139,087 73,222 6,549 182 2,536 39 207 1 138 308 196 4 Changji 11,577 319,521 18,277 55,242 91 1,555 383 312 6 152 112 1,400 26 Hami 89,872 300,695 1,070 14,970 22 994 159 90 8 7 3 1,670 8 Kuytun 1,047 289,902 5,208 33,111 585 1,195 4,234 724 72 3,720 455 1,952 56 Turpan 186,781 55,895 30 19,538 - 108 24 50 - 8 - 164 4 Totals 294,247 1,105,100 97,807 129,410 880 6,388 4,839 1,383 87 4,025 878 5,382 98 Source: Table 4.6, pp.84-85, XUAR Statistical Yearbook, 2007

Table 6 provides the official estimates of population change in each of the five cities. Birth rates for ethnic minority groups are significantly higher for ethnic minority groups in the cities of Hami (10.3%), Changji (6.6%), and Altay (6.6%) but somewhat lower for Turpan (2.1%) and Kuytun (1.9%). Death rates for ethnic minority groups in each of the five cities is higher Supplementary Appendix M 21 than for all ethnic minority groups but this can be partly explained by the demographic reality that ethnic minority groups have at least one more child than the Han and the population of ethnic minority groups is also higher. However, because of higher birth rates the natural growth rate of ethnic minority groups is higher in each of the five cities. Nevertheless, it must be noted that the natural growth rate adduced to higher birth rates is quantitatively different to urban population change resultant from inwards migration from either the surrounding countryside, elsewhere in XUAR or other regions of China.

Table 6 - Population Changes in Five Cities (%) Birth Ethnic Death Ethnic Natural Growth Ethnic

Rate Minorities Rate Minorities Rate Minorities Altay 11.22 17.91 4.07 4.76 7.15 13.15

Changji 9.68 16.37 3.31 2.90 6.37 13.47

Hami 13.41 23.76 5.40 6.16 8.01 17.60

Kuytun 13.23 15.17 4.47 4.93 8.76 10.24

Turpan 15.68 17.82 6.22 6.73 9.46 11.09

Source: Table 4.9, pp.90-91, XUAR Statistical Yearbook, 2007

4.3 Economic Characteristics

Table 7 provides data on the gross regional product for each of the five cities, differentiated by primary, secondary and tertiary sectors, and per capita GDP. Hami city has the highest gross regional product and Altay the lowest gross regional product. Turpan the city with the highest percentage of ethnic minority groups has the second lowest gross regional product. Altay has the lowest per capita GDP and Turpan the second lowest per capita GDP but the highest GDP is not Hami but Kuytun because of the latter’s close proximity to the oilfields in northwestern Xinjiang. Primary industry contributes the lowest percentage of GDP – highest is 22.4% in Altay and lowest 4.7% in Kuytun – in all five cities. Secondary industry constitutes a lower percentage of GDP in all cities with the exception of Kuytun, where it constitutes 49.7% of GDP. The highest percentage of GDP constituted from the tertiary industry is in Altay where 58.3% of GDP is constituted from this source and the lowest percentage is in Kuytun where 45.3% of GDP is constituted from this source.

Table 7 - Gross Regional Product and Per Capita Income for Five Cities Gross Regional Primary Secondary Tertiary Per Capita GDP Product Industry Industry Industry (CNY/Person) Altay 203458 45768 38974 118788 11480 Changji 989150 150439 337377 404134 21237 Hami 659765 77150 230646 351969 15720 Kuytun 340877 16317 169700 154680 23705 Turpan 299040 62405 77751 158884 11546 Source: Table 3-10, p. 54-55, XUAR Statistical Yearbook, 2007

Table 8 demonstrates that Changji has the highest level of agricultural and livestock production and Kuytun the lowest. Turpan despite being only two-thirds the size of Hami has a significantly higher level of vegetable, melon and livestock production, and only in cotton is Hami a more significant producer than Turpan. However, this table also demonstrates that on the fringes of these cities, with the exception of Kuytun, in peri-urban areas, the rural economy is quite important.

22 Supplementary Appendix M

Table 8 - Agricultural and Livestock Production (tons) Cereal Oil-Bearing Cotton Vegetables Melon Livestock Crops Crops Altay 31,219 - 9,059 17,100 36,597 14,255

Changji 132,257 30,009 2,296 551,748 155,941 40,828

Hami 15,943 18,482 1,923 41,869 59,504 12,797

Kuytun 398 1,617 - 2,460 - 271

Turpan 13,610 5,618 - 99,160 86,475 24,000

Source: Tables 11.18 and 11.25, pp.306-307 and 317-318, XUAR Statistical Yearbook, 2007

Similar observations to those made above in relation to agriculture and livestock production can be made in relation to horticultural production as is evidenced in Table 9. Grape production and the associated value added viticulture industry (especially the production of wine and dried fruits) is the most important component of the horticultural industry in Turpan, Changji, and Hami. In fact Turpan produces over 85% of the grapes produced in the XUAR and 25% of all grapes produced in China. Hence horticulture is central to the economy of Turpan and wines and dried raisins from Hami are found everywhere in China.

Grape Drying House in Turpan

Table 9 - Horticultural Production (tons) Apples Pears Grapes Peaches Apricots Jujubes Altay 259 - 183 55 - -

Changji 7,671 - 107,240 1,590 3,619 5

Hami 18 512 61,164 60 3,572 2,132

Kuytun ------

Turpan 18 512 713,385 215 2,856 3,848

Source: Table 11.21, XUAR Statistical Yearbook, 2007

Table 10 clearly demonstrates that Changji is the most industrialized of the five cities and Altay the least industrialized of the five cities. In each of the nine industrial products included in this table there is some level of industrial production in Changji. Changji produces more of each of these products with the exception of alcoholic beverages than any of the other four cities. Also, given its close proximity to Urumqi it has comparative advantages (especially in Supplementary Appendix M 23 the supply chain) than the other four cities. The second most industrialized city is Kuytun, although given its close proximity to the oil city of Karamay (and home to China’s largest oil refinery and highest per capita GDP in XUAR of CNY 96,006) the industrial multiplier effects are likely to be very substantial in the immediate future.

Table 10 - Industrial Production Electricity Textile Paper Alcoholic Coal Generated Cement Sulfuric Calcium Plastic Products Products Beverages (10,000 (100 (10,000 Acid Carbide Products (tons) (tons) (million lit) Tons) million Tons) (ton) (ton) (ton) Kwh) Altay - 2,851 1,024 4.16 6.42 35.49 - - 1,274

Changji 54,591 92,057 21,107 950.74 49.29 316.36 74,096 76,612 39,712 Hami 16,244 145 11,242 507.65 20.13 40.67 - 8,380 604 Kuytun 27,096 1,130 76,059 365.49 29.08 160.36 - 15,066 32,047

Turpan 7,754 - 3,503 14.44 5.39 36.44 53,479 - 818

Source: Table 12.17, XUAR Statistical Yearbook, 2007

Table 11 provides a list of waged employees in the five cities. However, unfortunately it does not provide data disaggregated by gender, ethnicity or poverty and does not include people working for XPCC enterprises in urban municipal areas (2,975 in Altay, 60,048 in Changji, 51,721 in Hami, 10,085 in Kuytun, and 2,987 in Turpan). The SES data analyzed below provides a breakdown for households surveyed but the following generalizations can be made: (i) females are less likely to be employed as wage workers in extractive industries, the manufacturing industries, and construction industries than men; (ii) ethnic minority groups are in a similar position to women in some respects although because of the affirmative action policies for ethnic minority groups they are over-represented, albeit at lower levels, in the public sector; and, (iii) if poor people are waged employees they are likely to be found in lower paying jobs in the primary, manufacturing and construction industries.

Table 11 – Number of Employed Workers Altay Changji Hami Kuytun Turpan Primary 4,600 69,900 20,100 245 4,200 Industries Extractive 4,800 4,400 11,700 21,500 31,200 Industries Manufacturing 3,000 27,300 5,500 25,250 3,700 Industries Public 2,500 11,700 11,700 10,250 4,500 Utilities Construction 2,400 8,100 1,300 4,250 500 Industries Services 5,000 12,900 4,500 8,650 4,200 Industry Public 36,100 64,100 27,600 30,250 29,200 Sector Totals 53,900 198,400 82,400 100,395 77,500 Source: Table 4.23, pp.107-108

The average wages of workers are presented in the following Table 12. Average wages are highest in Changji and lowest in Altay, the difference between the average wages in the two cities being 29%. This is not surprising if average wages for all sectors are included in the analysis. For urban collective units the average is highest again is in Changji and lowest in Turpan, the difference between the average wages in the two cities being a very substantial 42.2%. This difference is rather difficult to explain, although the predominance of waged employment opportunities in the extractive industries and the public sector might be partial explanations. In relation to other types of ownership the highest average wage is once more in Changji and lowest in Altay, the difference between the average wages in the two cities

24 Supplementary Appendix M being 31.7%. Even if these averages are not entirely accurate they provide a plausible explanation grounded in statistical data that differentiates among and between the five cities.

Table 12 - Average Wages of Workers in Five Cities (CNY) State-Owned Urban Collective Units of Other Types of Total Units Units Ownership Altay 15,506 15,779 19,736 13,750

Changji 21,863 26,616 22,078 20,138

Hami 18,879 18,242 15,812 15,250

Kuytun 16,252 16,373 17,675 15,530

Turpan 17,302 17,997 11,643 14,771

Source: Table 4.30, pp.116-117, XUAR Statistical Yearbook, 2007

To understand current economic prospects for these five cities and the likely impact the Project will have on furthering economic development the following Table 13 contains details of new investment in 2007. Some 67.6% of new investment is in the two cities of Changji and Hami. The major sectors for new investment in all five cities are the secondary industrial sector (33.8%) and tertiary industrial sector (52.7%). On a per capita basis Changji has the highest investment per capita at CNY 7,016, which is 25% higher than the regional average and Kuytun the lowest investment per capita at CNY 2,730, which is 45% lower than the regional average. However, Kuytun is in very close proximity to the oil city of Karamay, which last year had investment per capita of CNY 76,420: way in excess of most cities in China. Hence the low investment per capita for Kuytun has to be seen in this context. As argued elsewhere Kuytun is well placed to leverage this growth in investment in Karamay.

Table 13 – New Investment in Five Project Cities (CNY 10,000) Total Primary Secondary Tertiary Residential Investment Industry Industry Industry Buildings Altay 81,346 4,707 10,306 59,094 7,239

Changji 282,901 18,128 134,066 116,501 14,205

Hami 249,986 14,533 73,699 138,832 22,922

Kuytun 82,503 2,827 17,855 59,109 2,712

Turpan 91,486 13,688 30,948 42,062 4,788

TOTALS 788,222 53,833 266,874 415,598 51,866 Source: Table 5.11, pp. 139-141, XUAR Statistical Yearbook, 2007

There is limited foreign direct investment (FDI) in the five cities, with Altay according to Table 14 not attracting any FDI in 2006. Changji contracted the highest FDI in 2007 of the other four cities while Kuytun actually recorded a disinvestment during 2007 but utilized investment from previous years. Hami and Turpan each attracted four different contracts although the FDI per contract was higher in Hami than Turpan. Looking closely at the comparative advantages of the XUAR, it is in the field of natural resources that attracts much of the FDI and not in other areas. Hence cities in close proximity to natural resources are the ones that will benefit from ongoing FDI.

Table 14 - Foreign Direct Investment (US$) Number of Contract Actual Investment Contracts Value Utilized Altay - - - Changji 7 2,115,000 445,000 Hami 4 2,005.000 364,000 Kuytun 1 (-27,000) 209,000 Turpan 4 1,812,200 - Supplementary Appendix M 25

Source: Table 17.11, p.503, XUAR Yearbook, 2007

Over 56.7% of tourists who visited these five cities according to Table 15 were in Turpan and the least number of tourists constituting 4.1% visited Kuytun in 2007. Apart from Kuytun, which registered a decline in tourists in 2007 compared to 2006, tourism numbers increased in the other cities, ranging from 55.6% in Turpan to 16.1% in Altay. However, on a per capita basis the average tourist spent CNY696.44 in Altay (serves as gateway to Kanas) whereas in Turpan the average tourist spent CNY188.35 per capita. This indicates that tourists are likely to spend a day or less in Turpan without incurring costs for accommodation, meals and additional services (karaoke, massage etc) than in Altay, but rather buying a few local Uyghur handicrafts, some dried fruits, limited sightseeing, and perhaps a meal. In Altay on the other hand because of its distance from Urumqi tourists have to spend more time in Altay. That aside tourism is very important to the local city economies of both Altay and Turpan.

Table 15 – Tourism in the Five Cities Number of Tourists Domestic Tourism Earnings (CNY) 2006 2007 2006 2007 Altay 647,500 772,500 435,000,000 538,000,000 Changji 801,000 942,000 249,000,000 320,000,000 Hami 808,000 1,066,000 162,000,000 216,000,000 Kuytun 215,000 297,872 43,000,000 56,000,000 Turpan 2,600,000 4,035,000 520,000,000 760,000,000 Totals 5,071,500 7,113,372 1,409,000,000 1,890,000,000 Source: Tourism Bureaus, Five Project Cities, March 2008

4.4 Poverty in Project Cities

However, to render this analysis more intelligible and user-friendly, this section first compares and contrasts the social and poverty characteristics of each of the five Project cities based on the SES that was undertaken as part of this Project. The data presented in the following tables in this section are somewhat more differentiated than those that appear in official sources, either at the individual city level or the regional level, but this is because the SES is statistically and sociologically more representative of households in the Project cities than any of the data collected by individual city authorities (little or no evidence of household-based stratified sampling) or the Statistics Bureau of Xinjiang Uyghur Autonomous Region (sample is statistically too small at 1,380 urban households for all of XUAR).

The first of the comparative socioeconomic data tables in this section, Table 16 identifies the levels of income poverty in the five cities using the international US$2 per capita, per day to assess relative levels of income poverty and the international US$1 per capita per day and the proposed income per capita, per day of CNY3.56 (US$0.51) that the Poverty Alleviation Office under the State Council issued in mid-April 2008. The table also includes the estimated percentage of households who would be eligible for assistance under the MLSS7 if there were adequate coverage.

7 The MLS payment for each of the five cities is as follows: Altay CNY117; Changji CNY141; Hami CNY130; Kuytun CNY140; and, Turpan CNY117. However, the Bureau of Civil Affairs in each of the five cities could not provide estimates on the numbers of people who are considered to be absolutely poor but are not receiving support under this scheme. Only residents legally registered to live in the city are eligible for support under the MLSS. The ―floating population‖ (liudong renkou) is not eligible for assistance under the MLSS.

26 Supplementary Appendix M

Table 16 - Incidence of Income Poverty in the Five Project Cities (%) Altay Changji Hami Kuytun Turpan GENERAL HOUSEHOLDS US$2.0 per day 40.0 12.6 17.9 15.6 22.9 US$1.0 per day 12.0 6.2 11.1 4.4 7.2 US$0.5 per day 5.0 1.6 1.6 1.6 1.2 MLSS 10.0 3.1 4.7 2.5 3.6 ETHNIC MINORITY HOUSEHOLDS US$2.0 per day 50.0 25.0 21.6 19.0 23.8 US$1.0 per day 19.4 8.4 17.6 7.2 9.6 US$0.5 per day 8.5 0.7 2.0 1.6 1.6 MLSS 13.8 3.1 11.1 2.5 2.4 SINGLE ADULT HOUSEHOLDS US$2.0 per day 56.7 28.6 25.0 28.6 33.3 US$1.0 per day 22.2 7.2 12.5 14.3 15.1 US$0.5 per day 5.5 - 3.2 2.4 1.9 MLSS 11.1 3.5 6.3 7.2 5.6 Source: SES, February-March, 2008

From the above table it can be seen that the incidence of poverty, whether the international relative poverty level of US$2 per day per capita or the very low MLS levels are used, is greater in Altay than the other four cities. Some 67% of households surveyed have daily per capita incomes of less than US$2. For ethnic minority households surveyed the incidence of poverty using the same criteria is 91.7% and for single-adult households 95.5%.8 The next poorest city is Turpan, where 35.9% of all households surveyed have daily per capita incomes of less than US$2 per day, ethnic minorities 37.4%, and single-adult households 55.9%. Both cities have the highest percentage of ethnic minorities as a percentage of their population. Hami has the third highest incidence of poverty with 35.3% of all households surveyed having daily per capita incomes of less than US$2, ethnic minorities 52.3%, and single-adult households 47%. Kuytun has the second lowest incidence of poverty with 24.1% of all households surveyed having daily per capita incomes of less than US$2, ethnic minorities households 30.3%, and single adult households 52.5%. Changji has the lowest incidence of poverty with 23.5% of all households surveyed having daily per capita incomes of less than US$2, ethnic minorities households 37.2%, and single-adult households 39.3%.

In all five cities there are a greater number of both ethnic minorities and single-adult households with daily per capita incomes of less than US$2. This finding from the SES is not surprising because it is commonly assumed in the XUAR that ethnic minorities households are more likely to be living in poverty but as the SES also illustrates there is a greater incidence of poverty using the below US$2 daily per capita income among single-adult households. What stands out from the SES data is that in both Altay and Hami the incidence of poverty among ethnic minorities’ households is significantly higher than among ethnic minorities in the other three cities. Explanations for this are not readily forthcoming although the data presented elsewhere and an analysis of this data suggests a number of plausible explanations.

It should also be noted that if the focus were only on households surveyed with daily per capita incomes of US$1 or less the incidence of poverty for all household types is more than halved but from the perspective of assessing the level of poverty represented by income such households are living in absolute poverty. If the benchmark poverty line used by the Poverty Alleviation Office were to be used, only households with daily per capita incomes of

8 Single-Adult household is used in this SPA to denote that some households also have only male single adults although in most instances the single-adult household refers to households in which the single adult is typically a female. However, not in all instances are such households more economically and socially disadvantaged than other non-single adult households that are poorer or have a larger number of dependents. Supplementary Appendix M 27 less than US$0.42 (CNY2.2) would be considered as living in poverty. Using this very low benchmark Altay still remains the city with the highest incidence of poverty but Hami becomes the city with the next highest incidence of poverty, followed by Turpan, Changji and Kuytun. However, the SPA recommends that households with daily per capita incomes of less than US$2 should be used for benchmarking the impact of the Project on poverty although in terms of Project benefits, most notably employment generation, first preference should be accorded the poorest and then the least poorest within the spread of such household

Other quantitative indicators of poverty that should be used to assess the incidence of poverty in the five Project cities include the percentage of household monthly income spent on food consumption, the monthly surplus/deficit of household income over expenditure per capita, and the net value of household assets. These indicators are found in the table overleaf relating to other quantitative indicators of income.

Poverty analysis generally relies on the proposition that food consumption as a percentage of monthly expenditure is a good indicator of poverty or its lack thereof because when households have to spend more of their monthly income on foodstuffs they have less of this same monthly income to spend on other items expenditure, including health, education, clothing, entertainment, and even social networking. 9 Income poverty based simply on average daily per capita income levels is a less accurate indication of poverty than the monthly surplus/deficit of household income over expenditure per capita because a household that can manage to avoid deficit monthly income levels on a monthly basis is less likely to fall into poverty or more likely if living in poverty to be able to lift itself out of poverty.

Table 17 illustrates that even the poorest households surveyed had an income surplus over the last 12 months although it should also be noted that illness or death of a household member able to generate income would render many households vulnerable to greater levels of income poverty. The net value of household assets is rather difficult to assess but the SPA based this assessment on house ownership using the same housing value rates per meter square as the RP for each of the five cities and estimating the possible levels of savings over the past 10 years. This is rather arbitrary but it does provide a good indication of net asset values.

Table 17 - Other Quantitative Indicators of Income-Related Poverty Altay Changji Hami Kuytun Turpan GENERAL HOUSEHOLDS Food Consumption As % of Monthly Expenditure 38 31 40 31 36 Monthly Income Surplus Over Expenditure (CNY) 1,215 2,189 1,704 1,554 1,432 Net Value Of Household Assets (CNY) 153,341 343,426 251,948 179,550 261,761 ETHNIC MINORITY HOUSEHOLDS Food Consumption As % of Monthly Expenditure 38 33 44 31 40 Monthly Income Surplus Over Expenditure (CNY) 341 3,283 1,330 1,190 1,634 Net Value Of Household Assets (CNY) 85,854 325,496 128,634 113,660 256,505 POOR HOUSEHOLDS Food Consumption As % of Monthly Expenditure 42 46 48 44 45 Monthly Income Surplus Over Expenditure (CNY) 170 392 307 215 352 Net Value Of Household Assets (CNY) 78,242 180,290 68,045 79,900 160,680 SINGLE-PARENT HOUSEHOLDS Food Consumption As % of Monthly Expenditure 34 26 45 40 47 Monthly Income Surplus Over Expenditure (CNY) 762 1,233 421 651 571 Net Value Of Household Assets (CNY) 109,087 270,136 113,568 96,500 201,548 Source: SES, February-March, 2008

9 Social networking in one of the most important manifestations of social capital and is very important in the context of maintaining existing social relationships and building new social relationships. Such social relationships often facilitate easier access to employment, finance, health, education, and social support.

28 Supplementary Appendix M

The above table illustrates that better-off households predictably spend a smaller percentage of their monthly income on foodstuffs than less well-off households. It also illustrates that ethnic minority households spend a greater percentage of their monthly income on foodstuffs than other households but this is also related to the fact that ethnic minorities generally have larger households and also typically have a range of kinship obligations centered round the sharing of foodstuffs that other households do not have. The SES did not undertake a survey of the different foodstuffs consumed but the data provided by the Statistics Bureau of the XUAR (see, Table 8-10, p.212) illustrates that the poorest of all urban households (and in this context they are those households receiving MLSS payments) consumed 89.41kg. Of grain per capita per annum compared to higher income households who consume 61.47kg of grain per capita. Low income households also consume less protein (beef, mutton, poultry and fish) with an aggregate total of 24.1kg per capita compared to the 48.9kg per capita of better off-households. The only protein where there is not a significant difference per capita is in relation to mutton: poor households per capita consume on average 9.66kg per capita and better-off households 10.40kg per capita. However, better-off households consume 9.10kg per capita of pork compared to the 2.96kg per capita of poorer households. Ethnic minorities’ households that are Muslim in XUAR would not be consuming pork-based products and this data provided by Statistics Bureau of XUAR reinforces the point that non- Muslim ethnic groups are more likely to be represented among the better-off households than Muslim ethnic groups.10

If Turpan is taken as a city to illustrate this point the average monthly household income according to the SES data is CNY2803, which means that an average household spends CNY1009 per month on foodstuffs. A typical poor household by way of contrast with an average monthly income of CNY894 would according to the above table spend CNY420 per month on foodstuffs. The average household size in Turpan for non-ethnic minorities’ households is 4.6 persons, thus the per capita expenditure for an average household would be CNY219.34 compared to CNY91.30 for the average poor household. This means that average households have over 240% more to spend on food consumed each month than poor households.

Household monthly income surplus over expenditure more-or-less reinforces the per capita income data presented in the previous table. The highest surplus is in Changji and lowest in Altay. This applies to all four socio-economic categories of households with the exception of single-adult households in Altay where instead of being the poorest of all single-adult households among such households in the five cities these households in fact have the second highest income surpluses after similar households in Changji. However, the reason for this is that single-adult households in Altay, while over-represented with incomes of less than US$2 daily pre capita are well represented in those households with at least this income level per capita.

The net value of households surveyed reveals that once more all households in Changji have the highest net value (based on ownership of physical assets most notably housing and financial assets in the form of accumulated savings) of all households. But Turpan has a higher net value of all households surveyed because housing sizes reflecting the fact that the Uyghur in this city have larger houses than any other ethnic group both in Turpan and the other five Project cities. This also explains why poorer households in Altay have a higher net value than their counterparts in Hami even though the monthly surplus of income over household expenditure is on average 20.9% greater in the latter.

10 More non-pork meat products are consumed by middle-income groups in XUAR than other income groups but the fact that some pork meat products are consumed by all income groups also indicates that not all the very poor are Muslims and of course the fact that mutton is also consumed by upper- income groups indicates that not only does the general population consume mutton but there are also Muslims in the upper-income groups. Supplementary Appendix M 29

It is also important to understand the major sources of livelihoods in each of the Project cities. Table 18 illustrates what types of livelihoods are either more likely or less likely to render the people of each city poor or non-poor.

Even though this is an urban improvement project a significant number of households surveyed rely wholly on agriculture or a combination of agriculture and non-agriculture to derive their livelihoods. The city with the highest percentage of households surveyed in this category is Altay, where 33.5% of households are in either category. The city with the lowest percentage of households surveyed in this category is Kuytun, where only 4.3% of households are in either category. In relation to ethnic minority households Altay is also the city with the highest percentage of households surveyed in these two categories, where 58.7% of households are in this category.

Table 18 - Major Sources of Livelihoods (%) and Amounts in Italicized CNY Per Annum Altay Changji Hami Kuytun Turpan GENERAL POOPULATION 13.8 10.2 11.5 2.7 24.5 Livestock And Cropping 12,810 14,490 14,478 11,550 13,250 48.4 35.3 43.2 39.5 42.1 Public Sector Waged Employment 15,779 26,616 18,242 16,373 17,997 12.1 28.9 23.1 26.0 17.5 Private Sector Waged Employment 13,750 14,848 20,138 15,530 14,771 5.0 14.0 16.0 30.2 10.9 Small and Medium Enterprises 12,960 19,327 14,352 13,996 15,673 20.7 12.0 6.2 1.6 5.0 Combination of Agriculture and Non-Agriculture 14,175 18,345 16,470 13,450 14,900 ETHNIC MINORITY HOUSEHOLDS 28.5 26.1 22.3 10.2 31.6 Livestock And Cropping 13,550 15,900 15,250 12,760 13,850

31.5 29.7 30.0 22.5 32.3 Public Sector Waged Employment 14,550 23,250 17,550 15,250 16,545

7.6 25.6 29.1 48.2 15.2 Private Sector Waged Employment 12,300 16,650 19,450 14,150 13,150

2.2 3.6 8.5 17.1 12.5 Small and Medium Enterprises 10,512 20,293 16,791 9,097 17,412

30.2 15.0 10.1 2.0 8.4 Combination of Agriculture and Non-Agriculture 14,850 20,175 16,345 13,875 15,150 POOR HOUSEHOLDS 43.5 39.0 33.8 12.1 36.5 Livestock And Cropping 10,250 12,175 11,340 10,100 11,985 29.0 22.8 38.6 27.9 25.1 Public Sector Waged Employment 12,500 13,250 12,860 12,500 13,150 15.8 20.3 19.4 54.8 23.1 Private Sector Waged Employment 11,875 12,800 11,465 11,950 12,275 - - - 4.1 Small and Medium Enterprises - - - - 11,284 6.5 15.9 5.2 - 11.2 Combination of Agriculture and Non-Agriculture 11,950 12, 890 12,250 - 12,850 SINGLE-PARENT HOUSEHOLD 10.8 8.2 10.0 - 21.6 Livestock And Cropping 12,245 14,175 14,350 - 12,275 45.1 32.0 39.1 32.5 39.0 Public Sector Waged Employment 15,525 25,125 17,950 15,965 17,250

30 Supplementary Appendix M

Altay Changji Hami Kuytun Turpan 20.0 30.2 37.8 41.2 13.6 Private Sector Waged Employment 13,500 14,250 19,175 14,950 14,150

5.9 20.0 8.0 25.5 22.6 Small and Medium Enterprise 11,750 17,451 15,250 12,250 12,785

18.2 10.0 5.1 0.8 3.2 Combination of Agriculture and Non-Agriculture 13,650 16,750 15,450 13,275 14,185 Source: SES, February-March, 2008

Once more the lowest percentage of households in either of these two categories is in Kuytun, where 12.2% of households are in either category. Among poor households surveyed the largest percentage of households in either category are in Changji, where 54.9% of households are in either category. Again the lowest percentage of households surveyed in either category is Kuytun, where 12.1% of households are in either category. Finally, for single-adult households surveyed the highest percentage surveyed are in Altay, where 28.8% of households are in either category. The lowest percentage of households surveyed in either category once more is in Kuytun, where only 0.8% of households are in this category.

This clearly indicates in the Project cities, especially in Altay, Changji, and Turpan, and to a lesser extent in Hami (except for ethnic minority groups and the poor), it is impossible to ignore the importance of agriculture to the economic and social life of these cities. It is also important to note that in the two cities with the highest percentage of ethnic minority groups – Altay and Turpan – livelihoods derived wholly or in part from agricultural-based activities are still crucial for a significant proportion of households. Hence in any project with an investment focus on urban transport and environmental improvements this socioeconomic characteristic has to be recognized and the Project is not simply dealing with an urban population relying exclusively on non-agriculturally derived forms of livelihood. There are very clear urban-rural linkages in at least four of the Project cities.

From the preceding table it can be seen that public sector employment generates the highest income in all of the five Project cities. It can also be seen that income levels are highest in all instances in Changji and lowest in either Altay or Kuytun. However, it is necessary to stress that public sector employment in China covers all employers from local administrative bureaus to very large state-owned enterprises such as China Oil, China Mobile and Air China. It is not surprising then that the highest incomes in all of the Project cities from public sector employment are in Changji, which is in close proximity to Urumqi, and it is also not surprising that the lowest incomes in this sector are in Altay. There is a substantial 40.7% difference between what a public sector worker on average can earn in Changji and what another public sector worker on average can earn in Altay. Somewhat similar differences exist for ethnic minority households and single-adult households, but not for poor households, where the difference is only 3.4% but this is because most of the public sector employment for the poor is in lower-grade bureau level employment.

In relation to private sector employment the city of Hami has the highest annual incomes, with the exception for poor households where Changji has the highest annual incomes. Lowest annual incomes in all four socioeconomic categories are in Altay. The differences between the highest paid private sector workers in Hami and the lowest paid private sector workers in Altay is 31.7% (somewhat similar for ethnic minority groups and single-adult households), which is somewhat lower than for public sector workers in Changji and Altay, but the difference between public sector and private sector workers is 24.3%: this reflects the fact that the most highly profitable enterprises in the five Project cities are in the public sector. Income differentials for poor households in Changji and Altay are very slender at 5%.

Supplementary Appendix M 31

The preceding table also clearly demonstrates that with the exception of Turpan poor households in the other four cities are not involved in registered small and medium enterprises although personal observations and interviews with key informants it is also quite clear that there are a significant numbers of ―poor‖ households (especially the floating population) involved in smaller rather than medium business activities. However, as with the other sources of livelihoods households involved in Changji in small and medium enterprises have higher annual incomes in Changji than elsewhere and poorer households in Altay have the lowest annual incomes. The difference between Changji and Altay is 32.9% and an almost similar difference for single-adult households. For ethnic minority households it is a substantial 48.1% and this reflects the lower level of economic activity in Altay compared to Changji.

The educational status of members of households surveyed for the SES is included in Table 19. It is typically assumed that the more educated household members are the less likely they are to be poor but as the data from the SES included in the following table disaggregated by poverty, gender and ethnicity reveals this does not necessarily apply to a significant number of households in each of the five Project cities.

Table 19 - Educational Status of Household Members (%) (Females in Italicized Brackets) Altay Changji Hami Kuytun Turpan GENERAL POPULATION 9.1 9.5 7.1 14.4 15.3 No Formal Schooling (14.6) (10.0) (3.0) (13.5) (16.5) 17.9 29.6 37.6 16.7 31.4 Primary Schooling (14.0) (31.5) (37.4) (16.4) (30.9) 32.5 34.7 27.2 23.6 24.4 Junior High (33.1) (32.9) (27.3) (24.4) (24.1) 23.4 17.6 17.8 24.3 25.3 Senior High/ Tech. College (19.7) (20.4) (17.9) (13.5) (18.7) 17.0 8.4 10.3 21.0 3.6 Post Secondary (18.4) (2.7) (9.4) (18.6) (9.5) ETHNIC MINORITY HOUSEHOLDS 11.1 12.0 13.1 17.6 15.9 No Formal Schooling (17.9) (12.6) (14.5) (10.8) (17.3) 16.6 36.1 38.2 27.9 28.8 Primary Schooling (24.3) (37.0) (38.1) (13.5) (26.5) 26.5 39.8 20.6 20.9 30.1 Junior High (25.6) (33.3) (20.0) (21.6) (23.4) 25.9 7.4 17.7 26.7 19.4 Senior High/ Tech. College (16.6) (9.2) (16.3) (48.6) (18.3) 19.9 4.6 10.4 6.9 5.8 Post Secondary (15.3) (7.4) (9.8) (10.8) (14.2) POOR HOUSEHOLDS 8.3 25.0 29.0 - 9.0 No Formal Schooling (16.6) (33.3) (21.4) (-)) (8.3) 27.7 32.1 38.7 33.3 31.8 Primary Schooling (22.2) (33.3) (35.7) (33.3) (33.3) 36.1 17.8 6.4 66.6 40.9 Junior High (44.4) (25.0) (-) (16.6) (41.6) 27.9 25.1 22.7 0.1 18.3 Senior High/ Tech. College (11.1) (-) (41.6) (33.3) (-) - - 3.2 - - Post Secondary (-) (-) (7.1) (16.6) (-) SINGLE-PARENT HOUSEHOLD 10.2 11.2 10.8 19.2 17.2 No Formal Schooling (13.2) (14.1) (12.2) (21.5) (19.8) 19.5 31.5 39.1 18.5 32.5 Primary Schooling (15.2) (33.0) (40.5) (22.0) (34.3) 30.2 36.8 25.8 25.0 26.5 Junior High (32.1) (38.2) (26.1) (27.2) (30.0) 25.8 14.2 14.3 19.2 23.2 Senior High/ Tech. College (26.2) (10.5) (13.2) (15.1) (15.3) 14.3 6.3 10.0 18.1 0.6 Post Secondary (13.3) (4.2) (8.0) (14.2) (0.6) Source: SES, February-March, 2008

32 Supplementary Appendix M

Turpan has the highest percentage of males and second highest percentage of females who have completed the two levels of education – senior high/technical college and post secondary education – for which there much better career pathways in China than for the other lower levels of education. For ethnic minorities’ households Altay has the highest percentage for both males and females with the exception of Kuytun but the sample of ethnic minorities’ households here is so small that it should be discounted. The same applies to the poor and single-parent households surveyed as part of the SES. Changji on the other hand, which is the least poorest of the five cities has the lowest percentage of both males and females who have completed either senior high/technical college or post secondary education, than any of the other four cities. It appears that despite government attempts to improve educational outcomes in more remote cities the improved livelihood outcomes depend on the nature of the local city economic base. Changji is the most diversified and is in close proximity to Urumqi while Altay is the least economically diversified and the farthest of the five cities from Urumqi. However, what Altay has that the other cities lack to a greater extent is a pool of reasonably well educated young people but without greater economic opportunities available locally they are forced to seek such opportunities elsewhere.

One of the major causes of poverty, including persistent poverty is poor health. In assessing the impact of illnesses on households over the past six months the SES for the most part reported that the common cold was the major form of illness followed by three upper respiratory illnesses – asthma, bronchitis and tonsillitis – and in the context of this SPA it has been decided to focus on the stated causes of respiratory disorders in each of the five cities. Table 20 includes the causes of respiratory disorders:

Table 20 - Causes of Respiratory Disorders in Households (%) Altay Changji Hami Kuytun Turpan GENERAL HOUSEHOLDS Road Conditions 49 33 17 43 22 Air Pollution 16 38 96 78 64 Heavy Traffic 26 4 6 11 21 Floating Population 15 38 7 20 7 Poor Dietary Practices 18 34 5 32 40 Poor Hygiene Practices 21 10 99 28 46 ETHNIC MINORITY HOUSEHOLDS Road Conditions 47 42 24 19 23 Air Pollution 8 54 98 71 63 Heavy Traffic 39 4 6 10 20 Floating Population 17 46 7 33 6 Poor Dietary Practices 11 38 5 24 42 Poor Hygiene Practices 17 21 99 10 44 POOR HOUSEHOLDS Road Conditions 50 17 22 75 - Air Pollution 20 - 100 75 33 Heavy Traffic 40 - - 50 33 Floating Population 10 - 22 50 17 Poor Dietary Practices 10 33 - 25 100 Poor Hygiene Practices 20 17 100 - 17 SINGLE-PARENT HOUSEHOLDS Road Conditions 78 57 25 71 22 Air Pollution 11 57 75 71 67 Heavy Traffic 44 - - 29 33 Floating Population 11 29 - 14 44 Poor Dietary Practices 0 29 - 29 33 Poor Hygiene Practices 44 - 75 29 - Source: SES, February-March, 2008

Dust caused by the state of unsealed roads in Altay is considered the major cause of respiratory disorders by households but in Changji, Hami, Kuytun and Turpan air pollution caused by coal-fired heating systems in the winter-time is considered to be a more important cause of respiratory disorders. Altay as can be noted is in the mountainous areas of northern Xinjiang and the ambient air quality is considered to be excellent, although in Turpan where the average winter temperature is a full 8 degrees centigrade less cold than in Altay (-9.0 in Supplementary Appendix M 33

Turpan in January compared to -18.0 in Altay during the same month) and with an annual average temperature of 15.8 degrees centigrade compared to 5.2 degrees centigrade in Altay does not rely on coal-fired heating to the same extent. Dust is a problem experienced by households during the eight months of the year when there is little rain and no snow whereas air pollution is more of a problem during the winter months. This Project addresses some of the environmental problems created by unsealed roads in at least some of the five cities.

Heavy traffic ranked much lower as a cause of upper respiratory disorders although it ranked higher among poorer ethnic minorities’ households in Altay, Kuytun, Hami and Turpan because the poor households targeted for the SES were located in close proximity to where heavy trucks pass through: mining trucks in Altay, oil tankers in Kuytun and general cargo in Hami and Turpan. Better traffic management in all five cities and the partial construction of a ring road in Changji the most heavily trafficked city will resolve some of the issues associated with noise and exhaust emissions generated by heavy trucks.

Interestingly the floating population in Changji and Kuytun according to ethnic minorities’ households, because of their tendency to dispose of garbage anywhere, is considered to a relatively important cause of upper respiratory disorders although this might also be a negative reaction to this population from local ethnic minority groups. Nevertheless, the Project will be attempting to modify the behavior of all the population of each city (and this includes the floating population) in relation to the disposal of garbage.

Table 21 provides details on access to basic public utilities and water and sanitation facilities for households, which should also be a good proxy indicator for poverty:

Table 21 - Access to Basic Water and Sanitation Facilities (%) Altay Changji Hami Kuytun Turpan GENERAL HOUSEHOLDS Piped Water Supply 70 97 50 94 88 Continuous Electricity Supply 100 100 53 100 100 Central Heating 65 37 36 70 66 Indoor Flush Toilet 67 47 33 61 55 Common Outdoor Toilet 33 45 67 39 44 Common Bathing Facilities 60 39 36 61 22 ETHNIC MINORITY HOUSEHOLDS Piped Water Supply 58 100 49 86 95 Continuous Electricity Supply 100 100 53 100 100 Central Heating 47 21 35 25 33 Indoor Flush Toilet 53 25 36 50 55 Common Outdoor Toilet 47 71 64 50 45 Common Bathing Facilities 44 29 36 50 22 POOR HOUSEHOLDS Piped Water Supply 80 83 29 75 66 Continuous Electricity Supply 100 100 53 100 100 Central Heating 20 33 18 25 33 Indoor Flush Toilet 20 15 12 50 35 Common Outdoor Toilet 80 85 88 50 65 Common Bathing Facilities 30 50 12 50 65 SINGLE-PARENT HOUSEHOLDS Piped Water Supply 78 71 39 86 88 Continuous Electricity Supply 100 100 53 100 100 Central Heating 56 43 26 57 66 Indoor Flush Toilet 44 57 13 57 55 Common Outdoor Toilet 56 43 87 43 45 Common Bathing Facilities 67 43 13 71 22 Source: SES, February-March, 2008

Continuous electricity supply is available to all households with the exception of Hami where only 53% of households have access to continuous electricity supply. In fact Hami ranks the poorest in every respect, whether it is access to piped water supply, central heating or indoor flush toilets, with the exception of Changji where ethnic minority households are less likely to have an indoor flush toilet than ethnic minority households in Hami. In fact in this respect

34 Supplementary Appendix M ethnic minority households in Hami appear to be better off than the typical household in this city, which is a little surprising given the fact that for the most part such households are located in the peri-urban neighborhoods of Hami.

Housing area size is also quite a good indication of poverty and Table 22 presents data on the number of rooms, total living area, and whether the household owns or rents the house or apartment it is currently occupying. The following table is derived from the SES and is based on averages for each of the four socioeconomic categories:

Table 22 - Housing Area Size of Households Altay Changji Hami Kuytun Turpan GENERAL POPULATION Number of Rooms 3 4 4 3 5 Total Living Area (sq.m) 73 137 121 85 132 Owner 47 99 86 91 97 Tenant 53 1 14 9 3 ETHNIC MINORITY HOUSEHOLDS Number of Rooms 4 7 6 3 6 Total Living Area (sq.m) 82 191 148 76 187 Owner 62 100 83 88 100 Tenant 38 - 17 12 - POOR HOUSEHOLDS Number of Rooms 3 6 6 3 5 Total Living Area (sq.m) 62 130 139 60 156 Owner 49 100 100 50 100 Tenant 51 - - 50 - SINGLE-PARENT HOUSEHOLDS Number of Rooms 3 6 4 3 4 Total Living Area (sq.m) 62 153 78 62 165 Owner 80 100 100 66 100 Tenant 20 - - 44 - Source: SES, February-March, 2008

The link between housing area size and net asset worth has been discussed elsewhere in this section on poverty and here it is only relevant to note that total living area and housing ownership is lowest in Altay and highest in Changji. Ethnic minority groups generally have larger houses and are more likely to own their houses in each of the five cities than the rest of the population. The poor and single-parent households also fare well in this respect in Changji, Hami and Turpan, although poor households have the smallest housing area and typically with fewer rooms than the non-poor. The poor are also likely to live in more poorly constructed houses than the non-poor, have lower quality fixtures and fittings, and problematic central heating systems.

Residential Community in Turpan

Supplementary Appendix M 35

Ownership of household consumer durables is also another indication of poverty or the lack thereof. Table 23 presents data derived from the SES:

Table 23 - Ownership of Household Consumer Durables Altay Changji Hami Kuytun Turpan GENERAL POPULATION Mobile Phone 76 72 100 95 86 Air Conditioner 4 8 10 15 48 Color Television 95 99 93 98 97 DVD/VCD 56 61 44 74 75 Refrigerator 67 90 75 87 93 Cooking Stove 34 39 26 23 19 Washing Machine 67 95 66 90 85 Computer 18 11 8 35 28 ETHNIC MINORITY HOUSEHOLDS Mobile Phone 75 71 99 90 85 Air Conditioner 3 9 11 10 40 Color Television 100 96 92 100 100 DVD/VCD 64 46 63 91 66 Refrigerator 78 75 85 100 100 Cooking Stove 12 26 21 17 19 Washing Machine 64 95 70 90 84 Computer 14 8 11 19 20 POOR HOUSEHOLDS Mobile Phone 40 100 100 75 66 Air Conditioner - - - - 16 Color Television 100 100 65 100 100 DVD/VCD 20 - 22 50 67 Refrigerator 50 83 67 25 84 Cooking Stove - - - - - Washing Machine 20 100 55 75 59 Computer - - - - - SINGLE-PARENT HOUSEHOLDS Mobile Phone 67 100 100 100 89 Air Conditioner - - - - 33 Color Television 100 100 100 100 100 DVD/VCD 55 71 25 86 66 Refrigerator 55 100 25 71 100 Cooking Stove 10 21 - 12 12 Washing Machine 44 100 25 86 89 Computer - - - 12 22 Source: SES, February-March, 2008

Ownership of consumer durables such as mobile phones, color television, and refrigerators is quite high among all households surveyed including poor households (Altay and Kuytun being exceptions for refrigerators). This is because mobile phones are a relatively inexpensive and convenient form of communication and color television sets are now relatively inexpensive and considered almost a necessity in each household irrespective of socioeconomic status. Washing machines also appear to be considered necessary although only in Changji is ownership very widespread. What differentiates the poor from the non-poor is ownership of DVD/VCD, air conditioners (hardly necessary in Altay), cooking stoves and computers. Household ownership of computers is still very low for the non-poor, with highest ownership being in Kuytun and lowest ownership in Hami. However, computer ownership in Changji is the second lowest of the five cities and this suggests a lack of positive correlation between household use and ownership of computers and income-generation activities.

Ownership of the means of transportation, including NMT, which is also important in understanding the holistic dimensions of poverty, is reflected in Table 24. It should come as little surprise that ownership of bicycles is the most important form of transport in the five cities. However, not all households own bicycles and in Turpan among poor households only 16% of households surveyed own a bicycle compared to 20% in Altay although a small number of poor households in Turpan own a motorcycle or donkey or horse (include more than likely a trailer or cart). Ownership of motorized transport (motor cycle, tractor, agro- vehicle, car and truck) is very low in all five cities, although not surprisingly Changji has the

36 Supplementary Appendix M highest ownership of all five forms of motorized transport by the non-poor population, including ethnic minority groups.

Table 24 - Ownership of Means of Transportation Altay Changji Hami Kuytun Turpan GENERAL POPULATION Donkey/Horse - 15 12 - 23 Hand Cart - 23 10 - - Bicycle 21 79 72 62 51 Motor-cycle 10 15 22 11 34 Agro-Vehicle - 5 2 1 2 Tractor - 11 1 1 3 Car 4 7 1 1 2 Truck - 6 1 2 - ETHNIC MINORITY HOUSEHOLDS Donkey/Horse - 25 28 - 23 Hand Cart 5 12 5 - - Bicycle 14 59 80 80 48 Motor Cycle 11 21 29 10 36 Agro-Vehicle - 20 - - 2 Tractor - 21 1 - 4 Car 3 4 1 - 1 Truck - 8 - - 1 POOR HOUSEHOLDS Donkey/Horse - 3 - - 8 Hand Cart 8 12 5 - 2 Bicycle 20 83 55 75 16 Motor-cycle - - 22 - 11 Agro-Vehicle - - - - - Tractor - - - - - Car - - - - - Truck - - - - - SINGLE-PARENT HOUSEHOLDS Donkey/Horse - 5 - - - Hand Cart - 6 - - - Bicycle 12 100 100 71 45 Motor Cycle - - - - 11 Agro-Vehicle - 14 - - 5 Tractor - 14 - - 3 Car - - - - 1 Truck - 14 - - - Source: SES, February-March, 2008

For the overwhelming proportion of the population living in each of these five cities they must rely on public transport or NMT. The options for multi-modal transport for the poor are influenced by their lack of access to a range of both motorized and non-motorized transport options. Such options need to include a renewed commitment to ensuring that the residents of these cities, especially those who cannot afford motorized transport, are able to move freely and safely around the city. Road users include not simply those going to work or market but also children and youth attending school and other centers of learning, women who might work part-time but are also the primary care-givers in households, and the aged and physically impaired. Elsewhere in this SPA the perspectives of these different stakeholder groups will be considered in some detail

4.5 Stakeholders Perceptions of the Project

In order the understand stakeholders’ perceptions of issues relevant to this Project a series of FGDs as explained in Section 2 were facilitated by the TA Consultants in conjunction with the PMOs of each of the five cities. The six tables or matrices in this sub-section summarize (i0 livelihood priorities; (ii) urban transport issues; (iii) urban environmental issues; and, (iv) linkages with the Project. However, for the public sector and private sector FGDs livelihood priorities were not discussed but rather for the public sector FGDs city development priorities were discussed and for private sector FGDs business expansion priorities were discussed. They are based on a careful reading of the issues discussed during the FGDs and a ranking from  being the lowest priority to  being of the highest priority. To ensure there Supplementary Appendix M 37 was consensus among FGD participants the facilitators asked each participant to physically score their own ranking and the cumulative average was estimated based on this process. The facilitators then requested FGD participants to discuss among themselves whether the group could agree on the overall ranking.

It comes as little surprise that mixed male and female FGDs, female only FGDs, ethnic minority group FGDs, and poor and vulnerable groups’ FGDs, attached the most important priorities to those associated with broad livelihood issues and there is little need to elaborate on these priorities: they are for the most part very obvious although it is important to stress that the ability to maintain and expand upon existing social networks is important for all stakeholders. However, as will be argued in the context of ethnicity this is an even more important issues among the major ethnic minority group, the Uyghur, than among the Han or other ethnic minority groups.

Urban transport issues are accorded the highest priority in Changji and the lowest priority in Kuytun among mixed male and female FGDs. This pattern is repeated with the other stakeholder FGDs, although both public sector and private sector FGDs in all five cities accord urban transport issues the highest priority. There are some differences though: female only FGDs are more likely to prioritize the more vigorous enforcement of traffic regulations and private sector participants are least likely to accord a high priority to this issue. Private sector FGD participants in all five cities accord a high priority to permission for private transport operators to provide services, reflecting their dissatisfaction with current public transport being non-responsive to local demand. Ethnic minority FGD participants in all five cities accord a high priority to continued access to central city markets for NMT reflecting the fact that ethnic minority groups are more likely to rely on this mode of transport than other transport users. With the exception of public sector FGD participants in Turpan and a lesser extent Hami NMT is accorded a very low priority in the other three cities, while among private sector FGDs in Changji and Hami it is very clear that NMTs should only be permitted access to city markets during harvest time.

Out of a possible score of 180 Changji scored the highest with a total of 146 for all stakeholder groups while Kuytun scored the lowest with a total of 83. For mixed FGD out of a total possible score of 30 Changji scored the highest with a total of 28 while Kuytun scored the lowest with a total of 12. A similar pattern was repeated for female only FGDs with Changji scoring 30/30 and Kuytun 11/30; ethnic minority FGDs 20/30 in Changji and 11/30 in Kuytun; poor and vulnerable groups 21/30 in Changji and 10/30 in Kuytun; public sector groups 24/30 in Turpan and 20/30 in Kuytun; and private sector groups 28/30 in Changji and 21/30 in Kuytun.

Urban environmental issues are not ranked very highly in Altay and among poor and vulnerable FGD participants these issues rank lower than economic development and employment growth. The same priority is actually reflected among all poor and vulnerable FGD participants from the other four cities as well. The same applies to female FGD participants from Changji and to a lesser extent Hami. However, among public sector FGD participants only in Changji was this accorded a high priority but there was unanimity among all private sector FGD participants in each of the five cities. The better management of solid waste disposal was only accorded a very high priority in Changji among men and women, including ethnic minority men and women, but to a lesser extent among poor and vulnerable FGD participants.

Out of a possible score of 150 Changji scored the highest with a total of 116 for all stakeholder groups while Altay scored the lowest with a total of 43. For mixed male and female FGD participants the highest score was recorded by Changji 25/25 and the lowest Altay 7/25; female only FGDs 23/25 in Changji and 9/25 in Altay; for ethnic minority FGDs 15/25 and 5/25 in Altay; poor and vulnerable groups 23/25 in Changji and 10/25 in Altay;

38 Supplementary Appendix M public sector groups 19/25 in Changji and 5/25 in Altay; and, private sector FGDs 19/25 in Changji and 10/25 in Altay.

Linkages with the Project were highest among mixed male and female FGD participants in Turpan and lowest in Kuytun and this pattern was similar for female only FGD participants and ethnic minority FGD participants but there was equal scoring for all poor and vulnerable FGD participants from all five cities. In relation to public sector groups Turpan FGD participants gave the highest score to these linkages and once more Kuytun scored the lowest but by only a very slender margin and a similar scoring outcome existed for the private sector FGD participants. That sub-component with the least perceived linkage was generally the provision of rubbish tins, except in Turpan, which is not surprising given Turpan’s position as a major tourist destination but interestingly ethnic minority FGD participants and poor and vulnerable FGD participants in Turpan did not score the provision of rubbish tins very highly. The highest priority is the impact of local labor being employed on the Project and there was agreement from all stakeholder FGD participants that this is a very important linkage.

It would be reasonable to assume that public sector FGD participants would score the linkages with the Project very highly but Altay scored highest in this respect with the exception of the provision of rubbish tins. It was the only city to score a maximum score in relation to the Project addressing the needs of NMT users, especially women and children. Private sector FGD participants on the other hand, irrespective of which city they lived in argued the Project needed to prioritize the use of roads by motorized travel.

Out of a possible score of 175 Changji scored the highest with 154 and Kuytun the lowest with 134 but this indicates quite high linkages with the Project as perceived by FGD participants. Among male and female FGD participants the maximum possible score of 30 was recorded by Turpan FGD participants and lowest 14/30 in Kuytun; female only FGD participants 30/35 was recorded in Turpan and 24/35 in Hami was the lowest; ethnic minority FGD participants 29/35 in Turpan was the highest and 19/35 in Kuytun the lowest; poor and vulnerable FGD participants there were no differences with a score of 31/35 recorded in all five cities; for public sector FGD participants the highest score in Turpan of 28/30 was the highest the lowest score was 21/30 in Kuytun; and, private sector FGD participants the highest score was 25/25 in Turpan and the lowest score of 21/25 was recorded by Altay, Changji and Kuytun. This indicates that stakeholders can see much by way of merit in the Project because the scoring indicates very little difference between the highest and lowest scores for each of the different stakeholder groups.

Supplementary Appendix M 39

Table 25 -Summary of Mixed Male and Female FGDs Altay Changji Hami Kuytun Turpan LIVELIHOOD PRIORITIES 1. Ensure that all household members have sufficient food and clothing to      maintain a comfortable living standard. 2. Ability to meet all expected and      unexpected healthcare expenses. 3. Ensure that children in school can      complete secondary education 4. Create the conditions for children to      have better standard of living than parents. 5. Have sufficient levels of savings to      sustain household during difficult times. 6. Ability to maintain and expand upon      existing social networks. URBAN TRANSPORT ISSUES 1. Better transport connectivity between home, workplace, school, market, hospital,      and entertainment venues. 2. Permanent surfacing of roads that are currently un-surfaced leading to residential      areas and other public spaces. 3. Provision of footpaths, street lighting, controlled crossings and traffic calming      measures. 4. More vigorous enforcement of traffic      regulations to improve road safety. 6. Continued access to central city markets for NMT involved with the transport of     agricultural products.  7. Permission for private transport operators to provide services that respond      to local demands URBAN ENVIRONMENTAL ISSUES 1. Improved air quality to reduce the impact      of upper respiratory illnesses. 2. Improvements in both the quantity and      quality of water available in the city. 3. Measures to ensure that noise levels      from increased traffic not too high. 4. Disposal of solid waste needs to be better managed than at present and people      need to be able to afford to use service.. 5. City needs to be cleaner and greener but not at the expense of economic      development and employment growth. LINKAGES WITH THE PROJECT 1. Upgraded roads benefit some but not all people living in the city, especially people      living in peri-urban areas. 2. Improved transport management needs to also address the concerns of NMT      users, especially women and children. 3. If local labor is employed on the road component this will benefit both the      individual household and local economy. 4. The provision of rubbish tins is good because it improves the city’s environment      but does not address issue of SWM. 5. Providing public toilets will improve the      overall hygiene of the city. 6. Where people are adversely affected by the Project they need to be adequately      informed and compensated for loss 7. People want to participate in the Project but they need to be invited by the Project      to do so otherwise they cannot.

40 Supplementary Appendix M

Table 26 - Summary of Female Only FGDs Altay Changji Hami Kuytun Turpan LIVELIHOOD PRIORITIES 1. Ensure that all household members have sufficient food and clothing to      maintain a comfortable living standard. 2. Ability to meet all expected and      unexpected healthcare expenses. 3. Ensure that children in school can      complete secondary education 4. Create the conditions for children to      have better standard of living than parents. 5. Have sufficient levels of savings to      sustain household during difficult times. 6. Ability to maintain and expand upon      existing social networks. URBAN TRANSPORT ISSUES 1. Better transport connectivity between home, workplace, school, market, hospital,      and entertainment venues. 2. Permanent surfacing of roads that are currently un-surfaced leading to residential      areas and other public spaces. 3. Provision of footpaths, street lighting, controlled crossings and traffic calming      measures. 4. More vigorous enforcement of traffic      regulations to improve road safety. 5. Continued access to central city markets for NMT involved with the transport of      agricultural products. 6. Permission for private transport operators to provide services that respond      to local demands URBAN ENVIRONMENTAL ISSUES 1. Improved air quality to reduce the impact      of upper respiratory illnesses. 2. Improvements in both the quantity and      quality of water available in the city. 3. Measures to ensure that noise levels      from increased traffic not too high. 4. Disposal of solid waste needs to be better managed than at present and people      need to be able to afford to use service.. 5. City needs to be cleaner and greener but not at the expense of economic      development and employment growth. LINKAGES WITH THE PROJECT 1. Upgraded roads benefit some but not all people living in the city, especially people      living in peri-urban areas. 2. Improved transport management needs to also address the concerns of NMT      users, especially women and children. 3. If local labor is employed on the road component this will benefit both the      individual household and local economy. 4. The provision of rubbish tins is good because it improves the city’s environment      but does not address issue of SWM. 5. Public toilets will improve the hygiene of      the city. 6. Where people are adversely affected by the Project they need to be adequately      informed and compensated for loss 7. Women want to participate in the Project but they need to be invited by the Project      to do so otherwise they cannot.

Supplementary Appendix M 41

TABLE 27 -SUMMARY OF POOR AND VULNERABLE GROUPS’ FGDs Altay Changji Hami Kuytun Turpan LIVELIHOOD PRIORITIES 1. Ensure that all household members have sufficient food and clothing to      maintain a comfortable living standard. 2. Ability to meet all expected and      unexpected healthcare expenses. 3. Ensure that children in school can      complete junior secondary education 4. Create the conditions for children to      have better standard of living than parents. 5. Have sufficient levels of savings to      sustain household during difficult times. 6. Ability to maintain and expand upon existing social networks. URBAN TRANSPORT ISSUES 1. Better transport connectivity between home, workplace, school, market, hospital,      and entertainment venues. 2. Permanent surfacing of roads that are currently un-surfaced leading to residential      areas and other public spaces. 3. Provision of footpaths, street lighting, controlled crossings and traffic calming      measures. 4. More vigorous enforcement of traffic      regulations to improve road safety. 5. Continued access to central city markets for NMT involved with the transport of      agricultural products. 6. Permission for private transport operators to provide services that respond      to local demands URBAN ENVIRONMENTAL ISSUES 1. Improved air quality to reduce the impact      of upper respiratory illnesses. 2. Improvements in both the quantity and      quality of water available in the city. 3. Measures to ensure that noise levels      from increased traffic not too high. 4. Disposal of solid waste needs to be better managed than at present and people      need to be able to afford to use service.. 5. City needs to be cleaner and greener but not at the expense of economic      development and employment growth. LINKAGES WITH THE PROJECT 1. Upgraded roads benefit some but not all people living in the city, especially people      living in peri-urban areas. 2. Improved transport management needs to also address the concerns of NMT      users, especially women and children. 3. If local labor is employed on the road component this will benefit both the      individual household and local economy. 4. The provision of rubbish tins is good because it improves the city’s environment      but does not address issue of SWM. 5. Public toilets meet the demands of poor      people who lack individual toilets 6. Where people are adversely affected by the Project they need to be adequately      informed and compensated for loss 7. People want to participate in the Project but they need to be invited by the Project      to do so otherwise they cannot.

42 Supplementary Appendix M

TABLE 28 - SUMMARY OF ETHNIC MINORITY GROUP FGDs Altay Changji Hami Kuytun Turpan LIVELIHOOD PRIORITIES 1. Ensure that all household members have sufficient food and clothing to      maintain a comfortable living standard. 2. Ability to meet all expected and      unexpected healthcare expenses. 3. Ensure that children in school can      complete secondary education 4. Create the conditions for children to      have better standard of living than parents. 5. Have sufficient levels of savings to      sustain household during difficult times. 6. Ability to maintain and expand upon      existing social networks. URBAN TRANSPORT ISSUES 1. Better transport connectivity between home, workplace, school, market, hospital,      and entertainment venues. 2. Permanent surfacing of roads that are currently un-surfaced leading to residential      areas and other public spaces. 3. Provision of footpaths, street lighting, controlled crossings and traffic calming      measures. 4. More vigorous enforcement of traffic      regulations to improve road safety. 5. Continued access to central city markets for NMT involved with the transport of      agricultural products. 6. Permission for private transport operators to provide services that respond      to local demands URBAN ENVIRONMENTAL ISSUES 1. Improved air quality to reduce the impact      of upper respiratory illnesses. 2. Improvements in both the quantity and      quality of water available in the city. 3. Measures to ensure that noise levels      from increased traffic not too high. 4. Disposal of solid waste needs to be      better managed than at present and people need to be able to afford to use service.. 5. City needs to be cleaner and greener      but not at the expense of economic development and employment growth. LINKAGES WITH THE PROJECT 1. Upgraded roads largely benefit non EM groups because of roads selected and      resettlement Impacts. 2. Improved transport management needs to also address the concerns of NMT      users, especially women and children. 3. If local labor is employed on the road component this will benefit both the      individual household and local economy. 4. The provision of rubbish tins is good because it improves the city’s environment      but does not address issue of SWM. 5. Public toilets might be good for city hygiene improvement but if not designed in      culturally appropriate manner are negative. 6. Where people are adversely affected by the Project they need to be adequately      informed and compensated for loss 7. People want to participate in the Project but they need to be invited by the Project      to do so otherwise they cannot.

Supplementary Appendix M 43

TABLE 29 -SUMMARY OF PUBLIC SECTOR FGDs Altay Changji Hami Kuytun Turpan CITY DEVELOPMNETAL PRIORITIES 1. Promote greater levels of economic      development to create more employment. 2. Reduce absolute poverty as quickly as      possible and relative poverty incrementally. 3. Improve physical infrastructure to attract      more outside investment. 4. Support policies that promote social      harmony and sustainable development. 5. Make the city a physically more      attractive place to live in. 6. Adopt a demand driven approach to      urban development. URBAN TRANSPORT ISSUES 1. Better transport connectivity between home, workplace, school, market, hospital,      and entertainment venues. 2. Permanent surfacing of roads that are currently un-surfaced leading to residential      areas and other public spaces. 3. Provision of footpaths, street lighting, controlled crossings and traffic calming      measures. 4. More vigorous enforcement of traffic      regulations to improve road safety. 5. Continued access to central city markets for NMT involved with the transport of    X  agricultural products. 6. Permission for private transport operators to provide services that respond      to local demands URBAN ENVIRONMENTAL ISSUES 1. Improved air quality to reduce the impact      of upper respiratory illnesses. 2. Improvements in both the quantity and      quality of water available in the city. 3. Measures to ensure that noise levels      from increased traffic not too high. 4. Disposal of solid waste needs to be better managed than at present and people      need to be able to afford to use service.. 5. City needs to be cleaner and greener but not at the expense of economic      development and employment growth. LINKAGES WITH THE PROJECT 1. Upgraded roads benefit the city as a whole even though not directly targeted at      all local communities. 2. Improved transport management needs should also address the concerns of NMT      users, especially women and children. 3. If local labor is employed on the road component this will benefit both the      individual household and local economy. 4. The provision of rubbish tins is good because it symbolizes city’s commitment to      clean and green environment. 5. The provision of public toilets improves      the hygiene of the public places in city 6. Where people are adversely affected by the Project they need to be adequately      informed and compensated for loss 6. There are no obstacles to local people participating in the Project if they choose to      do so.

44 Supplementary Appendix M

TABLE 30 - SUMMARY OF PRIVATE SECTOR FGDs Altay Changji Hami Kuytun Turpan BUSINESS EXPANSION PRIORITES 1. City’s infrastructure needs to be improved to make it easier to undertake      business related activities. 2. To expand local business needs linkages with outside investors and the      latter want sound physical infrastructure. 3. Cost of operating and maintaining physical infrastructure should be fairly      distributed not just tax on business. 4. The local workforce needs to be trained in areas where they can value to what is      bring produced locally. 5. Local authorities must not place restrictions on floating population because      it is a flexible source of labor. 6. Environmental safeguards must not stifle      local business initiatives. URBAN TRANSPORT ISSUES 1. Better transport connectivity between home, workplace, school, market, hospital,      and entertainment venues. 2. Permanent surfacing of roads needs to      be prioritized so it benefits business.. 3. Provision of footpaths, street lighting, controlled crossings and traffic calming      measures should first be focused on commercial and service areas of city. 4. More vigorous enforcement of traffic regulations but not at expense of restricting      access and parking of service vehicles. 5. NMT should only be permitted in city center during harvest times and ultimately    X  circumscribed. 6. Permission for private transport operators to provide services that respond      to local demands URBAN ENVIRONMENTAL ISSUES 1. Major issues are disposal of solid waste      and quantity and quality of water. 2. Dust as a nuisance would be eliminated      with surfacing of central city roads. 3. Noise pollution control measures must not be too strict that result in business      incurring high costs. 4. Disposal of solid waste needs to be better managed than at present and      business needs to be able to afford to use service. 5. City needs to be cleaner and greener but not at the expense of economic      development and employment growth. LINKAGES WITH THE PROJECT 1.Upgraded roads benefit the development of business both in the city center and peri-      urban areas.. 2. Improved transport management needs to prioritize the use of roads by motorized      travel. 3. If local labor is employed on the road component this will benefit both the      individual household and local economy. 4. The provision of rubbish tins is good because it improves the city’s environment      but does not address issue of SWM. 5. Where business is adversely affected by the Project they need to be adequately      informed and compensated for loss

Supplementary Appendix M 45

5. MAXIMIZING GENDER ISSUES IN THE PROJECT

5.1 Gendered Hierarchies

Three of the major ethnic groups in the Project cities are Muslim – Uyghur, Hui, and Kazak – and as such the Islamic religion does have some impact on gender hierarchies among these three groups. Most notably the Islamic religion impacts on the public participation of women in both religious and civil affairs that are not typically constraints for Han women. Examples include women from each of these three ethnic groups being accorded less status than men in relation to activities surrounding the mosque ranging from weekly prayers, to circumcision ceremonies and rituals associated with funerals. Women are also generally excluded from directly participating in public decision-making processes related to matters that impact upon the household but this has little or nothing to do with Islam.

The kinship structure, which is largely patrilineal in nature, of these three groups is biased towards males in several aspects. Firstly, the oldest male is generally considered as the authority figure-head in the household and when he dies the next oldest male in the household is expected to assume this role. Secondly, property is generally inherited through males thereby according males a control over a significant economic resource. Thirdly, males generally control financial resources within the household thereby reducing the financial independence of females. Finally, on marriage the newly-wed female spouse typically leaves her parental household to reside in the household of her male spouse and thereby becomes subject to the formal authority of her spouse, his father, uncles and older brothers. In more traditional contexts, although now ―outlawed‖ in China she might also be subject to the authority of other, older wives. It is generally considered that younger, unmarried Uyghur men have more ―autonomy‖ than their unmarried sisters.

Han women by way of contrast have fewer restrictions on their public participation, are less likely to be subject to arranged marriages (although after marriage they may temporarily live in their spouse’s natal household under the formal control of his mother) and have much greater autonomy in relation to financial matters. There are also fewer restrictions on younger, unmarried Han women living and working away from their parental household, including in provinces faraway where there might be greater economic opportunities.

However, gendered relations are changing among these three groups, especially among the more urbanized of these groups. Younger Uyghur women and to a lesser extent Kazak and Hui are now exercising greater choice in who they marry although for the Uyghur especially it is preferred that marriage is with a Uyghur male or at least another Muslim (Uyghur males are not required to marry a Muslim if they choose not to do so). Educated Uyghur women are encouraged to find paid employment and as Table 19 has demonstrated education participation and education outcomes for ethnic minority women in the five Project cities, but especially Turpan, are at least equal to or better than for all males irrespective of ethnicity and also the general female population. Interviews with key informants also suggest that nowadays ethnic minority women either control or jointly manage household finances and are directly consulted over the more important issues such as children’s education.

Hence gendered hierarchies are more complex than the traditional stereotypes would imply. The key issue is one of participation and the empowerment of local women that is associated with the greater participation of women, irrespective as to their ethnicity, in this Project. Of relevance to this Project are: (i) there are no real constraints on women fully participating in the resettlement processes (and that includes receiving cash compensation if entitled to do so); (ii) women are able and willing to engage in paid work either directly or indirectly emanating from the Project; (iii) women are able and willing to assist in the design of the Project; and, (iv) women are also able and willing to actively monitor implementation progress and evaluate Project outcomes.

46 Supplementary Appendix M

5.2 Project Impacts on Women

While the Project will have generally positive impacts for all women there are some negative impacts that must be addressed. A detailed matrix has been included as an appendix to the SPA (see Appendix 1) that identifies these impacts by each component and sub-component and discusses the implications for women (and men) of the Project.

The most negative impact is for those women who will be affected by the upgraded and new transport corridors resulting in the acquisition of property (in most instances land). According to the resettlement investigations 1,696 females will be negatively impacted upon by this Project, although severely affected women number 970, of whom ethnic minority women constitute 21.9% in Altay, 15.7% in Changji, 75.5% in Hami, and 98.9% in Turpan. The negative impact will be greater for poorer women who live in households that rent housing rather than own housing, which is most significant in Altay where as Table 22 demonstrates 53% the general population (although only 51% of the poor population) rent their accommodation. Fortunately in Changji, which has the major resettlement impact, only 1% of households actually rent their accommodation. The RP is designed to mitigate the negative impacts of the compulsory acquisition of property and the provisions for compensation in the RP of each of the four cities where property will be acquired have been discussed with both women and men affected.

A related negative impact for female APs, especially those required to resettle in places at some distance from their current residence, is the undermining of existing social networks based both on kinship and other traditional community-based social relationships. Such social networks are even more important for women than they are for men because the latter are able to network on a wider basis because they are not subject to the same social constraints as women. The impact is considerably greater for ethnic minority women than for Han women, especially if ethnic minority women are forced to resettle in areas where there are fewer ethnic minority women. The proposed resettlement sites in Altay and Hami are more likely to induce such a negative impact than resettlement sites in either Changji or Turpan. The reason is that in Changji and Turpan for the most part severely affected women and their families can rebuild their houses in the communities they are currently residing in. During consultations associated with the resettlement investigations this was the most preferred option of these severely affected women.

Apart from the undermining of existing social networks for affected women, in Hami nearly half of all severely affected women are Uyghur women. The type of housing being offered them at proposed resettlement sites is not really the preference of the Uyghur women. They want houses with a courtyard enclosed by walls where they can raise livestock – goats and sheep – and grow grapes but also entertain guests: the courtyard is a quintessential design feature of the traditional Uyghur house. The houses designed by local government go only part of the way to meeting the preferences of severely affected Uygur women. The PMO’s response has been that it will consider alternative design options but has attempted to point out that some Uyghur in Hami live in apartments and are not worried about alternative housing because they have access to a continuous supply of electricity (a problem in Hami), tap water year round (major water shortages in summer), and central heating during the colder winter months. Nevertheless, the TA consultants found that in both group discussions and interviews with key informants that Uyghur women living in apartments still preferred to live in traditional Uyghur houses during the non-winter months.

Another negative impact will be in terms as to whether women can actually benefit from the urban transport improvements envisaged by this Project. Many of the new transport corridors are directed at facilitating a more managed flow of traffic than reaching out to local communities to improve connectivity between these communities and the city center or other Supplementary Appendix M 47 places where women more so than men might make more frequent journeys to on a daily basis. Such journeys typically include accompanying young school-age children to and from school, the purchase of daily household needs at local markets, or engaging in part-time employment or other income-generation activities. The Project has not fully addressed these issues because of the priorities accorded by the PMOs in each of the five cities. However, it has been assessed that the upgraded and new roads will ensure improved connectivity for some of the local communities, ranging from a high of up to 40% in Altay to a low of 5% in Changji. The PMOs have stated because the Project is financing the upgrading and construction of larger roads in the city this will enable local government to finance roads connecting local communities to larger city roads in future.

A related negative impact relates to the nature of the urban transport improvements. Superficially in most of the cities the improvements appear biased towards motorized forms of transport at the expense of NMT, including pedestrian, cycle users, animal-cart and hand- cart users, which also include a significant number of male road users but definitively include a disproportionate number of female road users and children. To mitigate this negative impact the Project includes a series of pedestrian walkways and cycle-ways, which when coupled with the more vigorous enforcement of local traffic laws will ensure that motorized road users do not use pedestrian walkways or cycle-ways as an extension of the existing road. Animal-cart users who provide an essential means of transport for road users living in peri-urban areas of at least 3 of the 5 cities will also be able to use the cycle-ways, as will hand-cart users. Most of the goods produced locally by women are transported either by animal or hand carts so this is a significant mitigation impact.

Assuming that there will be more motorized vehicle users on the roads of each of the 5 cities, traveling at average speeds 20-30 kilometers faster than at present, this will pose a greater road safety threat. Women will need to get used to more vehicular traffic moving at faster speeds and in a road use environment where vehicle users assume they have more ―rights‖ on the roads than pedestrians, this must have a negative impact on women. Accident data the world-over indicates that in accidents involving motorized and non-motorized road users that latter are more likely to be in injured or killed than the former. The Project has designed a series of road safety measures ranging from the upgrading or construction of more footpaths, controlled crossings, road safety awareness programs, and stricter enforcement of traffic regulations. However, realistically it must be recognized based on existing road user behavioral patterns and what can be observed in larger cities such as Urumqi, it is not that easy to mitigate all of the negative impacts of motorized road users or even pedestrians.

Increased traffic will lead to greater noise and pollution levels. Such problems are greater in Changji and Hami than the other 3 cities. As women are more likely to spend a greater portion of their day in the house or apartment than men, notwithstanding the GDOL, if in closer proximity to these upgraded or newly constructed roads, the negative health impacts of greater noise and increased pollution levels will disproportionately impact upon women. The EPM prepared by the Project has been designed to ensure that noise and pollution levels do not rise above levels considered environmentally acceptable in each of the five cities. A key component of this EMP is to ensure that women are also able to monitor noise and pollution levels to ensure that currently acceptable levels are not exceeded.

During the period of road upgrading and construction there will be substantial nuisances generated by noise and dust. Women living in close proximity to these civil works will be negatively impacted upon. To mitigate the negative impacts the EMP contains a series of measures to deal with noise (operating machinery with a lower decibel rating and avoiding construction activities while schools are conducting classes, during Friday Prayers at the mosque, or during the hours of darkness) and dust levels (periodically watering roads on a daily basis during actual construction). To ensure that women are not severely impacted

48 Supplementary Appendix M upon by these environmental nuisances the EMP and SAP also include provision for locally affected women to report breeches by civil works contractors to the IA.

Unaccompanied construction workers, skilled and unskilled, pose a possible threat to local women because they are likely to seek out sexual services for which they will be paying for but perhaps less diligent in ensuring that they only engage in safe sexual activities (defined here as 100% condom usage and the non-sharing of needles). While the Project will be seeking assurances that as much local labor as possible be hired this will not ensure that risks associated with STIs/HIV/AIDS will be entirely mitigated. Elsewhere in this SPA measures to mitigate the risks posed by unsafe sexual behavior will be discussed. Here it is suffice to argue that risks associated with STIs/HIV/AIDS cannot be ignored because there are negative impacts upon women, especially ethnic minority women.

Finally, there is the possibility that the environmental improvement sub-component will not effectively all women. The reality is that women manage solid waste to a greater extent than men being responsible according to the GDOL analysis for all or most household-based solid waste disposal. The Project needs to ensure that poorer communities are also targeted as part of this sub-component, the participation and awareness program designed as part of the EMP also be targeted at poorer women and their families, and user-fees are affordable. The SES found that poorer households cannot afford to pay for the full costs associated with the disposal of solid waste and it is necessary to subsidize these users. If poor women cannot afford any proposed tariff increases the net impact will be negative: these women will simply not comply with the requirement to dispose of solid waste in ways that meet even minimum environmental standards.

5.3 Project Benefits for Women

There are a range of project benefits for all women in each of the 5 Project cities that either directly or indirectly results in generally more positive impacts than negative impacts. Some of the benefits are common to all 5 Project cities while other benefits are specific to individual cities and yet other benefits apply only to specific groups of women.

The Project benefits associated with improved urban transport common to all 5 cities can be identified as follows:

Women as pedestrians will benefit from better road junction control resulting from the redesign of these junction configurations to provide the shortest possible pedestrian crossing facilities and the proper channelizing of traffic. This improves both pedestrian and driver safety. Other associated activities have been designed to improve visibility at these junctions and on other city roads characterized by curved road sections. This issue is more important in Altay than the other 4 cities because of its topography but improving visibility of all road users is a key road safety issue. There was an informed consensus among women who participated in the FGDs during the TA on this issue. It might be stating the obvious but road safety will not improve upon city roads unless all road users benefit from more effective traffic planning and design;

Women as users of public transport will benefit from bus stops with proper bus bays and associated pedestrian crossings that the Project will construct in the vicinity of schools, hospitals, shopping centers, cultural and recreational facilities. At present there are fewer bus stops with proper bus bays and associated pedestrian crossings in all of the cities and this increases the likelihood of public transport users being involved in accidents involving other road users. During FGDs many women identified problems with boarding and alighting from buses and then trying to cross a road to their intended destination. Most women also argued that they were likely to Supplementary Appendix M 49

continue to be public transport users for the rest of their lives because they could not see how they could afford motorized vehicular transport;

Women will also have access to other affordable forms of public transport, notably mini-buses and mini-cabs able to offer more flexible on-demand schedules and destinations than larger buses because roads are being designed by the Project to ensure that there will be easier and safer access to local communities by the providers of these alternative forms of transport. Importantly alternatives to existing public transport operate throughout the night and provide poorer households with a less costly option than taxis. This will provide women with more options to existing public transport and greater opportunities to avoid always moving about the city on foot. Time savings are important for women because of their greater domestic workload than that of men.

Women as pedestrians will benefit from the upgrading or construction of new footpaths and overhead street lighting. This Project improvement not only makes it more convenient for women to walk from their homes to local venues, primarily primary schools and local markets, but it also enables them to travel more safely during the hours of darkness. While road safety issues are important so also are personal security issues and women during FGDs expressed some concern about traveling by foot during the hours of darkness. With more commercial enterprises operating on a 24 hour basis female shift workers and their families (especially ethnic minority women) wish to be assured that it is safe to use local roads during the hours of darkness. It can also be noted that the Project is attempting to achieve the fullest possible coverage of areas in each of the 5 cities that currently lack footpaths and street lighting;

Women will benefit from a reduction in dust resulting from the permanent resurfacing of existing roads and newly constructed roads that will be permanently surfaced from the outset. In all 5 cities women in FGDs identified dust as being a major nuisance during the summer months and many of these women argued that even if existing unsealed roads were not widened upgrading them by resurfacing them with permanent materials would be of substantial benefit to them;

Capacity building for agencies in each of the 5 cities responsible for urban transport planning and overseeing the provision of urban transport services will be assisted by the Project to develop both a pro-poor and pro-gender approach to urban transport. Subsequent assessments of projects similar to this Project will be subject to an assessment as to whether they meet the needs of women, especially poor and vulnerable women. This approach is designed to gender urban transport improvements in ways that also benefit women and is recognition that women do not always have the same demands as men. In the medium to long-term all women in each of the 5 cities will benefit from enhanced institutional development.

There are some very indirect benefits for women in those cities developing new areas of their cities (e.g. eco-friendly industrial park in Turpan that does not compromise the existing physical environment heavily dependent on tourism) designed to increase industrial activity, promote economic development, and provide greater employment opportunities but these are unlikely to accrue during actual project implementation.

The Project benefits associated with environmental sanitation improvements common to all 5 cities can be identified as follows:

50 Supplementary Appendix M

Women will benefit from the provision of public toilets that are operated and maintained on a regular daily basis because there is a shortage of public toilets in all 5 cities and women undertaking trips away from their houses will have much greater access to clean public toilets than in the past (with the exception of Hami where such facilities will be provided through local financing). Women will also benefit from the improvements to public hygiene that these public toilets will provide. In all FGDs women argued that the provision of public toilets was a priority they would definitely support although there is a marked reluctance to pay for using such facilities;

Women will benefit from the provision of rubbish tins in the central city areas because it will improve the overall appearance of these central city areas in addition to contributing to improvements in public hygiene (e.g. cigarette butts are often picked up by young children). There are also safety considerations such as when harmful litter is dropped anywhere this poses an injury risk if not to women themselves but to their children (e.g. broken glass constitutes a health hazard). Similar benefits accrue from the provision of street-cleaning machines. Women participating in FGDs argued that clean cities are better places to live in and they also feel it is easier to attract external investment when there is evidence that city roads are kept clear of rubbish;

Women will benefit from the more effective management of solid waste, especially in those cities where there is a daily shortfall in the disposal of solid waste materials. Uncollected solid waste poses a public health problem, especially during the summer months, when use of water is restricted with the exception of Altay, and it is women that have to provide care to those household members who fall ill as a result of poor hygiene. There are also issues associated with the odors of solid waste materials and the aesthetic appearance of local neighborhoods; Women participating in FGDs are strongly supportive of any approach that would improve solid waste management but poorer women cannot afford to pay tariff increases for its more effective management.

Women will benefit from the provision of a public awareness program designed to modify existing behavior to the disposal of solid waste that links its disposal with sustainable environmental approaches such as differentiating between recyclable and non-recyclable waste. Women participating in FGDs argued that such an awareness program is necessary, especially programs targeted at children attending school.

Additionally in Altay the Project will construct public bath-houses together with public toilets because a community based needs assessment undertaken by the Altay PMO found that in poorer areas of Altay many households had neither toilets nor bathrooms. While all users will be required to pay a small fee for electricity used to heat water in the winter the local communities impacted upon by this investment have agreed to operate and maintain the facilities. It is very clear that women will benefit from this activity, especially poorer women, and this investment in Altay is both pro-poor and pro-gender.

Supplementary Appendix M 51

State of Existing Toilets in Some Areas of Altay

The other benefits to women from the Project relate to a number of positive impacts including greater levels of empowerment through active involvement in the design, implementation, monitoring and evaluation of the Project and employment generation and increased income both during the Project and on-going as a result of the Project.

Empowerment for women directly attributable to this Project is associated with the direct participation by women in each of the 5 cities in activities associated from preparation of the RPs and EMDPs, comments and suggestions as to how the Project could better prioritize what roads should be upgraded and constructed, issues associated with safer use of existing and planned roads, the importance of multi-modal forms of transport (MMT), monitoring indicators, and evaluation procedures. For over 95% of women involved in these Project-related activities this was and will be a completely new experience. Never before had women in any of these cities been consulted on a systemic basis, even for the other ODA activities and despite the difficulties encountered when dealing with PMOs unused to local women being involved in such activities ultimately the PMOs attempted to facilitate the even greater participation of local women.

Civil works during Project implementation will provide a minimum of 20% of total jobs directly created for women. While most of these jobs will be in areas of unskilled construction work they will provide opportunities for temporary waged employment that many of these women have never experienced. It will also provide these women with the opportunity to accumulate some savings over the three years that the Project will be implemented. For the average unskilled female worker, who would otherwise not being in paid employment, this represents a minimum of CNY9, 360 based on the minimum wage of CNY520 per month for six months of the year (civil works will be impossible during the winter), although in Turpan and Hami where there are less adverse weather conditions these civil works will be completed more quickly and women employed by the Project will be able as a result to accumulate savings more quickly. These savings could be used for a variety of livelihood improvement purposes

52 Supplementary Appendix M including establishing of small businesses, defraying the expenses associated with educating siblings, or improving the physical quality of housing.

A final benefit, at least for some of the women living in a city such as Turpan, is that they intend to leverage the Project to improve their livelihoods by promoting local community- based enterprises (e.g. home-stays overnight in individual houses or simply short visits to eat Uyghur food, drink wine or eat grapes, and watch local dancers) to attract visitors in ways that might not have been possible without the Project. The Project by improving access to some areas of Turpan previously inaccessible to day visitors because of poor road conditions (dusty roads during the hot summer where temperatures often exceed 40C are not considered by local women to be conducive to community-based tourism) are considered a benefit by women who participated in FGDs.

5.4 Specific Needs of Ethnic Minority Women

Ethnic minority women are more negatively impacted upon by resettlement than Han women affected by resettlement. The strength of ethnic minority women is in bonding social capital through the continued existence of traditional community-based organizations whereas Han women are generally better at bridging social capital through the development of new social networks. As argued elsewhere in this SPA by rupturing traditional community-based organizations the Project impacts negatively upon ethnic minority women. The greatest impact quantitatively is in Hami where 75.5% of all severely affected women are ethnic minority women (slightly more Hui women than Uyghur women) but the impact is greater on the Uyghur than the Hui because of the traditional social organization of the Uyghur, which impacts not only on the type of community organization the Uyghur feel more comfortable with but also spatial living arrangements. The stated preferences of Uyghur women for maintaining links with their own kindred and living arrangements need to be taken seriously. Both the RPs and EMDPs address these preferences.

Apart from these specific needs of ethnic minority women it is also necessary to ensure that they are as fully informed about the project benefits of the Project as Han women. Generally speaking young ethnic minority women are able converse in the Chinese language but the same does not apply to older women. To reach out to older women it is necessary to use ethnic minority languages, especially for the Uyghur and Kazak, although many older Hui women not only speak Chinese (the Hui do not have a language of their own) and some of these women also speak Uyghur and Kazak. The use of ethnic minority languages is not simply an issue of communicating in these languages but also ensuring that all signage, publicity materials, and legal documents are also translated into these languages.

Because ethnic minority women are subject to more socio-cultural constraints in relation to public participation, which is an essential characteristic of this Project, it is necessary to effectively facilitate the participation of these women in all aspects of the Project. It is not necessary to create a schism between male and female ethnic minority people but it is important to ensure that ethnic minority women can actively participate without necessarily having to rely on ethnic minority men as interlocutors. However, during the course of the SES it was found by the TA Consultants that ethnic minority women were able and willing to participate in all activities ranging from being surveyed to participating in the FGDs to agreeing to be interviewed as key informants.

In reality despite the specific needs of ethnic minority women, the positive impacts of this Project will also accrue to them where they are sufficiently gendered. As with all women the ethnic minority women living in the 5 Project cities (even Kuytun where there are few ethnic minority women) want to be able cross the road safely, they want footpaths that are illuminated during the hours of darkness, improved access to different public transport options, and other road safety improvements. Perhaps one important difference between Supplementary Appendix M 53 some ethnic minority women and all other women is the reliance ethnic minority women living in peri-urban areas place on animal-drawn forms of NMT. The donkey-drawn cart is a ubiquitous symbol of at least Uyghur cultural identity and there still needs to be a place in day-to-day life for the donkey-drawn cart: it not only transports people around but plays a crucial role during harvest. The main point is that MMT forms of transport are even more important to ethnic minority women than they are to Han women.

5.5 Willingness to Participate in the Project

Women irrespective as to their ethnicity and income status are prepared to actively participate in the Project. Evidence for this can be adduced by their willingness during Project design to take time out to provide a range of important insights as to how the Project should be designed.

All women without current employment and who are in reasonable physical health would like to be employed on the Project. They can see clear benefits from themselves personally and their households in general by being employed on the Project. Based on the FGDs it appears that even women with young children are able and willing to work on the Project although ethnic minority women, especially the Uyghur stated it was not really possible for them to work on Fridays and they would need to be accorded special consideration during the Muslim month of fasting. All women expect to be paid at least the minimum legal wage and afforded the same occupational health and safety considerations that other workers are supposed to enjoy. Being paid to participate in the Project is the primary index of ability and willingness to do so.

Women in general argued they would like to identify areas where road crossings would benefit them, venues where bus stops should be constructed, footpaths that should be illuminated during the hours of darkness, and blind-spots on existing roads that would be improved with new sightlines. Groups of women were afforded limited opportunities during the consultations associated with the Project design (e.g. during FGDs some time was spent looking at proposed improvements) but more time needs to be spent considering the design suggestions made by women.

Women are also interested in identifying where garbage collection stations should be located. They argue that it is either women or children in the household that dispose of all solid waste matter and location should be based on their opinion rather than that simply of male household members or more relevantly the PMOs. However, during the FGDs where members of the PMO were in attendance there was also a willingness by women to listen to technical explanations as to what is technically feasible and financially cost effective. Willingness to participate in this context is positively correlated with the capacity of city authorities to explain in non-complex language the rationale for locations they are seeking to choose.

54 Supplementary Appendix M

School Girls Walking Along City Road during Late Winter in Kuytun

Women are also interested in identifying indicators that impact upon their lives and would be worth monitoring both during the implementation of the Project and in the post-Project period. But women do not want to spend all of their time monitoring the Project, although they want the right to complain if noise and dust levels are too high during construction and expect immediate remedial action from the IAs. Yet it is clear from the FGDs that many women do not think the IAs would respond as quickly as they should so they want the Project to provide assurances of a rapid response from IAs when contractors ignore environmental issues or other safety issues.

More importantly women negatively affected by resettlement want to participate in resettlement activities. Of special importance is their right to compensation and being able to make complaints if they perceive unfair treatment or lack of accountability and transparency. This is a very important participation issue for affected women and they were told during the preparation of the RPs that they would be not only consulted but had every right to participate as considered necessary by each affected woman. To determine the level of participation in resettlement-based activities should not be the prerogative of the IAs according to most women but to women who are negatively affected by resettlement.

Supplementary Appendix M 55

Uyghur Women Selling Yoghurt in Downtown Hami

Women want to participate in the evaluation of the Project’s outcomes according to the FGDs. In particular they want to demonstrate why they have to make more frequent and shorter trips than men because of childcare, household management, informal sector employment, and small business-related activities. They also want to demonstrate why most of their trips are during the day and occur on a daily basis not just during the paid working week. Finally, women want to demonstrate the value of their time and to what extent the Project has enabled them to make better use of their time because they too would like more time for leisure or even to spend relaxing with their family, relatives and neighbors.

Goats Raised in Urban House of Uyghur Who Was Resettled

56 Supplementary Appendix M

6. SOCIAL RISKS AND BENEFITS

6.1 Ethnic Minority Development Issues

Table 31 contains a summary of the actions incorporated into the five EMDPs. More details on the specific actions for each of the five EMDPs are to be found in Section 5 of the EMDPs, which focuses on the Ethnic Minority Development Action Plan. It needs to be stressed that each EMDP was prepared by the PMO in each of the five cities with technical guidance first provided by XMADI and the TA consultants and involved a series of detailed consultations with stakeholder groups, including civil society groups (notably the Islamic Association where relevant) and mass organizations with ethnic minority representation (notably the ACWF).

Table 31 – Project-Related Impacts for Ethnic Minority Groups Altay Changji Hami Kuytun Turpan Positive Impacts Improved access to health and education facilities High Medium Low Medium High Road safety improvements in ethnic minority communities High High Medium Low High Improved household and public hygiene High Medium Low High High Employment opportunities for poor ethnic minority women Medium Medium Low Low Medium Gender empowerment through greater levels of participation High High Medium Low High Enabling environment for development of small enterprises Medium High Low Low High Tourism development controlled by ethnic minority groups Medium Low Low Low High Greater awareness by city planners of specific needs of ethnic minority groups High High High High High Negative Impacts Account for greatest number of affected households Low Medium High - High Creation of noise, dust, and waste during civil works Medium Medium High Medium High Possibility of increase in communicable Diseases Low Low Low Medium High Non-local workers might not respect local cultures High Medium Low Low High Motorized road users pose greater risk to NMT users. Medium High Medium Low Medium Mitigation Measures RP and EMDP ensure negative impacts are addressed. Yes Yes Yes Yes Yes EMP addresses issues of construction nuisances Yes Yes Yes Yes Yes STI/HIV/AIDS risks to be addressed as part of tendering process. Yes Yes Yes Yes Yes All unskilled workers and as many skilled workers as possible will be sourced locally. Yes Yes Yes Yes Yes Road safety issues and policy dialogue designed to ensure NMT users are still able to use roads. Yes Yes Yes Yes Yes Budgeted Costs of EMDP Measures 4,890,000 5,375,000 4,725,000 5,100,000 5,480,000 Source: EMDPs Prepared by City PMOs, May 2008

It can be seen from Table 31 that there are high or medium positive impacts in Altay, Changji and Turpan. This is important in each of these three cities because of the significant numbers of ethnic minority peoples residing in each of the cities. In Hami the positive impacts are lower than in these three cities because of how the Project has been designed in this city but nevertheless there are adequate positive impacts to ensure ethnic minority groups enjoy similar benefits to non-ethnic minority groups. In Kuytun the positive impacts are generally lower than in these three cities as well but a similar argument to that of Hami also applies to Kuytun. The point that needs to be made is that the EMDPs have been Supplementary Appendix M 57 designed in ways that recognize the importance of social and economic inclusion of ethnic minority groups: it is not simply a ―numbers‖ game targeting only ―visible‖ ethnic minority groups, notably the Uygur, Kazak and Hui.

The negative impacts are what would be expected in a Project of this nature. They are high in Hami and Turpan but because resettlement in Turpan will only take place in the same community this major impact is not a very big issue in Turpan. However, it is more of an issue in Hami where Uyghur AP are involved because while the resettlement sites might be suitable for Han or Hui AP they are not necessarily suitable for Uyghur AP without some design modification. Hami has promised to address this issue but it needs to do so with the active collaboration of Uyghur AP. Given the numbers involved this should not be a major undertaking but it does make for better practices involving resettlement during other urban development projects. The ability of Hami City to respond positively to the mosque demolition bodes well for satisfactory resettlement outcomes. The creation of noise, dust and waste nuisances during civil works is a relatively high risk in the drier summer climates of Hami and Turpan but the EMP addresses this issue so it can be assumed this risk can be mitigated to a large extent. Specifically the EMDP stipulates that civil works should not take place within 500 meters during Friday Prayers at local mosques

Another negative impact of some importance is that non-local workers might not respect ethnic minority cultural norms and values but given the fact that all unskilled labor and as much skilled labor as possible is recruited locally this will partly mitigate this negative impact. This is also why the risks posed by communicable diseases appears to be of a low to medium impact only and the high impact identified in Turpan is only tangentially related to the Project. However, in Altay where there are more complex civil works associated with the rehabilitation and construction of bridges there is likely to be the need to bring much of the skilled labor from outside Altay. This poses a medium risk of an increase in communicable diseases but not one that cannot be managed with the approach suggested when discussing STIs/HIV/AIDS in sub-section (c) below. Nevertheless, it has been observed there are no major ethnic schisms in Altay and there appears to be a very high deal of cultural integration.

Traditional NMT and Motorized Transport Co-Existing in Hami

58 Supplementary Appendix M

The final negative impact is that motorized road users will pose a greater threat to traditional NMT users than exists at present. This is especially important in Changji where there are a greater number of traffic accidents involving NMT users than in the other four cities. Juxtaposed against this possible increase in traffic accidents is the redesign of roads in Changji and the other cities to ensure that MMT road users can coexist without compromising the concerns of each city to develop a more integrated road network.

6.2 Involuntary Resettlement

Table 32 summarizes the resettlement impacts in the four Project cities where it is necessary to acquire land, housing and other livelihood assets resulting in either the resettlement or loss of income or both for AP. It can be seen that the greatest impacts in terms of numbers affected, including women, ethnic minority and poor and vulnerable groups, will occur in Turpan followed by Changji, Hami, and Altay. There are a greater number of males (1,743) affected than females (1,696), except in Turpan where the number of females (738) exceed males (714). However, there is a greater number of ethnic minority females (969) affected than ethnic minority males (965), likewise with poor and vulnerable females (280) compared to affected poor and vulnerable males (162). In terms of AP resettled males (954) exceed females (867) but among ethnic minority groups females (653) exceed males (648), as females (222) from poor and vulnerable groups exceed males (116). In terms of partial income restoration males (789) exceed females (761), as ethnic minority males (317) exceed ethnic minority females (316) but poor and vulnerable females (59) exceed poor and vulnerable males (46).

Table 32 – Resettlement Impacts Altay Changji Hami Kuytun Turpan Numbers Affected Male 146 674 209 - 714 Female 136 634 188 - 738 Ethnic Minorities Male 32 106 121 - 706 Female 30 100 109 - 730 Poor And Vulnerable Male 15 40 48 - 59 Female 27 63 82 - 108 Numbers Resettled Male 146 136 168 - 504 Female 136 128 151 - 520 Ethnic Minorities Male 32 21 97 - 498 Female 30 20 88 - 515 Poor And Vulnerable Male 15 26 40 - 35 Female 27 41 76 - 78 Partial Income Restoration Male - 538 41 - 210 Female - 506 37 - 218 Ethnic Minorities Male - 85 24 - 208 Female - 80 21 - 215 Poor and Vulnerable Male - 14 8 - 24 Female - 23 6 - 30 Source: Resettlement Plans for Altay, Changji, Hami and Turpan, May 2008.

In this SPA it is necessary to analyze the partial income restoration strategies of each of the RPs to enable a better understanding as to whether such strategies render APs better off or at least not worse off than had the Project not resulted in the loss of livelihood assets. As the above table illustrated only three cities are affected, but in Hami 79.8% of AP require partial Supplementary Appendix M 59 income restoration measures and in Turpan even though only 29.1% of AP are in a similar position all of the AP are from ethnic minority groups.

In Changji there are a range of income-restoration strategies based on the stated preferences of AP and taking into account the technical and financial feasibility of such strategies. For AP who lose access to a portion of their cropping land funds will be provided to either develop other, more intensive cash crops in demand both locally and in the regional market or improved livestock breeding to ensure healthier livestock able to fetch higher prices in the local and regional livestock markets. For other AP either unwilling or unable to embrace income-restoration strategies based on agriculture the RP for Changji proposes the development of local collective enterprises to create more non-agricultural employment opportunities or other income-generation activities. The RP also includes a provision for 20% of land acquisition compensation to be retained by the village for community-based infrastructure development (including local irrigation systems) and as a consolidated fund to provide subsidies to poor and vulnerable village members. The other 80% of land acquisition compensation will be paid to AP. This might seem reasonably equitable but it also has to be remembered that AP are being asked to share compensation with other villagers even though they have incurred the actual loss. The Project needs to actively monitor and evaluate whether the 20% is used for the purposes stated in the RP.

Specific measures include: (i) priority for AP in securing Project-related employment and other employment generation programs; (ii) participate in technical training programs to improve knowledge of new cropping technologies; (iii) support for more profitable forms of cash cropping and hot-house market gardening; and, (iv) livestock breeding improvement programs. During consultation with AP income-restoration activities related to these specific measures were identified by the AP as activities that would not only restore their incomes lost as a result of resettlement but could result in higher incomes than had they not been affected. If the latter actually occurs this is a very positive outcome of the resettlement processes in Changji but some caution is necessary here because what appears viable during participatory consultations is not necessarily viable when it comes to actual implementation.

New cropping technologies do indeed exist for a range of cereal crops (sorghum, wheat, barley, millet, corn and rice) and other non-cereal crops (rapeseeds, sunflower, flax, and sesame) that can be cultivated in the affected villages of Changji but it is not necessarily clear that the land to be allocated to AP will support such cropping activities. Hot-house market gardening represents opportunities to realize cash income more quickly than agricultural cropping although vegetables have to enter local supply chains more quickly than agricultural crops because of their perishable nature. In relation to improved livestock breeding while ownership of livestock is often tantamount to having ―money in the bank‖ unless livestock being raised are pigs (not a viable option for ethnic minority AP because of their religion), goats, sheep, and chickens (a little problematic because of Avian Influenza), or milking cows (distribution of milk products including fresh yoghurt can be a problem) the downstream income benefits are difficult to realize. It should also be noted that the technical training is of an iterative nature, not a one-off activity as was originally planned in the draft RP for Changji. Agricultural extension activities based on limited dissemination techniques are not useful.

60 Supplementary Appendix M

Sheep Raising in Peri-Urban Area of Changji Affected by Resettlement

A more viable income-restoration strategy is to look at the creation of non-agricultural based employment and other income generation activities. From Table 18 in Section 3 it can be seen that in Changji agricultural-related activities generate lower per capita incomes (CNY14,490 on average) than a combination of agricultural and non-agricultural based livelihood activities (CNY18,345) but the difference between agricultural based livelihood activities and waged labor is only CNY353 per capita or CNY4,236 on an annual basis. Opting for income-restoration activities that involve small enterprise development can result in income not only being restored but also increased but necessary business development activities are required to enable AP to achieve such end-results. This is quite challenging for rural AP without such prior experience.

In Turpan only 50 unskilled jobs will be directly generated by the Project and given the large number of people affected this would only provide employment for up to 10 months over 3 years that would benefit 14 or 15 households. This is a very insignificant impact and the Project needs to do much more than this to restore partially lost incomes. Because all AP are from ethnic minority groups (largely Uyghur but also Hui and a small number of Kazak) the EMDP prepared for Turpan contains a number of proposed activities to enhance the livelihoods of these ethnic minority groups. They include preference for other forms of employment offered in Turpan, which may be difficult to realize because the labor market is not dictated to by the Project. There is also scope to offer AP from ethnic minority backgrounds ongoing employment as road maintenance, garbage collection workers, and street cleaners but this is also quite an insignificant impact.

However, it is also proposed that training be provided in tourism related development, including the provision of accommodation services, tour guiding, food preparation, and showcasing local culture. The EMDP also proposes training in ethnic arts and handicrafts, Chinese language, and driving skills. These activities are extremely positive because tourism is central to the local economy and during consultations associated with the RP and EMDP it was very clear that many of the AP, especially women expressed a strong desire to leverage tourism to develop small businesses but all noted they lack the financial resources and to some extent the pre-requisite knowledge to sustain these small business activities. This is Supplementary Appendix M 61 where, as argued in the previous section, grant financing assistance would be invaluable in this context. The linkage with the Project is very obvious if the Project contributes to an increase in tourism, which is very much in the interest of a ―cleaner‖ and ―greener‖ Turpan.

For Uyghur AP, especially women, it is quite clear what the rationale for greater investments in developing small tourist-related businesses is but for the Hui and Kazak ethnic minority AP the same rationale does not apply. Turpan is a quintessentially Uyghur city and the 4 million tourists that visit Turpan each year do not come to see aspects of Hui and Kazak culture or to be offered tourist-related services by either of these groups. This was recognized by both Hui and Kazak and rather they argue it would be preferable if they were to be offered some guarantee of longer-term employment by the city but Uyghur AP also argue that such guarantees should be provided to them as well because not all Uyghur will be successful running small businesses. The Project will need to offer alternative skill development training for those ethnic minority groups who cannot leverage tourism and ensure this training facilitates the enabling environment whereby Hui and Kazak can at least restore their incomes to pre-Project levels.

In Hami there are a similar range of income restoration strategies as those to be pursued in Changji. Similar qualifications to those made in relation to Changji apply although given Hami’s distance from Urumqi it is probably necessary for AP to be more risk-adverse. The subsistence payments for the transitional period of up to 3 years appear to be low but they are to be adjusted upwards to match the urban MLSS for Hami. However, this only partially contributes to a reduction in poverty and the outcomes need to be carefully monitored. The Hami RP also proposes the creation of a pension fund with a minimum monthly return of 1%, which looks reasonably attractive but in reality such pension funds need to be linked to financial markets although the links should be to markets that are financially secure. Before choosing a pension fund it is strongly suggested that a local expert with knowledge of pension markets in China should be consulted. There are also specific proposals to develop greenhouse vegetable cultivation and either selling space to landless migrants to cultivate vegetables of for AP to cultivate the vegetables themselves while also receiving some form of rental payment. Supply chain linkages to the market are also important in this instance. Nevertheless, it can be concluded that at least at this level the Hami RP is quite well thought out.

6.3 STIs/HIV/AIDS

XUAR has one of the highest incidence of HIV/AIDS in China at 0.5% of the population and a relatively high incidence of other STIs. However, most of the people living with AIDS in this region, while being of Uyghur ethnicity are injecting drug users (IDUs). Among people with STIs the majority are commercial sex workers from other parts of China. The major sites for IDU users living with AIDS are Yining, Kashgar and Urumqi, whereas most of the CSW can be found in any city of a reasonable size that also includes a significant ―floating population‖. Hence all the five Project cities have CSW that may or may not be living with AIDS but they certainly exist. In Altay the CSW are either Han from elsewhere in China or the ethnic Kazak. In Changji most of the CSW are Han although there is also some Hui CSW. In Hami there CSW hail from a variety of different ethnic backgrounds but Han and Uyghur are to be found among the CSW population. The situation is similar in Kuytun although the majority of CSW are Han, while in Turpan most of the CSW are Uyghur. The PSB in each of these cities has its own database on CSW but does not share it freely with other agencies.

However, there are a number of other at-risk groups who are not classified as CSW and would more likely to be accessed by people working on the Project because of their affordability. Such at-risk groups work in tea-houses, small restaurants, lower-priced hotels, and at other low-cost entertainment venues. It is impossible to determine how many women (or men) also provide services of a sexual nature that work in these venues because their

62 Supplementary Appendix M main employment activity although not necessarily their major source of income is their actual designated work. Yet due to the fact that Turpan and to a lesser extent Altay and Hami are tourist destinations there are on a seasonal basis more women willing to trade sex in return for cash or other favors than in the other two cities, although in Kuytun women there are prepared to provide services of a sexual nature to oil workers from the far more affluent city of Karamay 30 minutes distance from the city.

In relation to the Project though it needs to be stressed that all of the unskilled labor will be sourced locally and more than likely most of the skilled labor will also be sourced locally. It is the professional and technical staff while less numerous in total number, may well be sourced from Urumqi or even outside of XUAR. Local labor will have more money in their pockets during the actual Project but it is unlikely to be money that it would spend in quite the same way as project-construction workers living and working locally for the duration of a project. Therefore it is assessed that the STIs/HIV/AIDS risks are lower than on other construction projects (e.g. major transport infrastructure projects such as an expressway). This does not mean that the Project ignore the risk completely and should target all workers with a relevant awareness and prevention program. The latter involves the distribution of free condoms to those workers who request them and STIs/HIV testing free-of-charge and in strict confidentiality to workers who feel they are at risk.

While the Project has adopted an affirmative employment approach to vulnerable groups it is unlikely to include known IDUs because of the nature of the employment. Road construction brings with it some occupational health and safety issues and one of the key issues is ensuring that labor employed on such projects do not work under the influence of illicit drugs or alcohol. So while IDUs who might be living with AIDS do not generally expose the rest of the workforce to at-risk sexual behaviors their dependence on illicit drugs or a methadone program makes it very difficult to employ this vulnerable group on the Project.

6.4 Road Safety Issues

Table 33 quantifies the incidence of fatal traffic accidents and personal injury accidents resulting in permanent physical or mental impairment. It does not include accidents where people spent time in hospital being treated as a result of injuries suffered as a result of traffic accidents. It also does not include people who eventually died as a result of a traffic accident. The PSB does not provide such details and the hospitals in the Project cities have some records but they are incomplete. It needs to be assumed that traffic accidents have been ―under-reported‖ or ―incompletely documented‖.

Supplementary Appendix M 63

Table 33 – Incidence and Economic Costs of Traffic Accidents Altay Changji Hami Kuytun Turpan FATAL TRAFFIC ACCIDENTS Pedestrians Adults Male 1 8 10 5 4 Female 2 5 6 6 1 Children Male 2 6 8 3 1 Female 1 4 2 1 3 Other NMT Users Adults Male 1 2 5 1 1 Female - 1 1 - - Children Male - 1 1 - 1 Female - 1 1 1 - Motorized Users Adults Male 3 35 11 12 12 Female 1 18 6 5 8 Children Male 1 12 3 2 4 Female 1 10 - 1 2 PERSONAL INJURY ACCIDENTS (PERMANENT IMPAIRMENT) Pedestrians Adults Male 3 24 10 15 7 Female 5 15 4 2 3 Children Male 6 18 2 1 1 Female 4 12 1 1 2 Other NMT Users Adults Male 1 5 10 - 6 Female 1 1 2 - 2 Children Male 1 - 3 1 1 Female 1 1 1 - 1 Motorized Users Adults Male 15 22 17 15 18 Female 8 12 6 10 3 Children Male 2 6 3 4 1 Female 1 3 1 5 -

ESTIMATED COSTS PER CAPITA OF TRAFFIC ACCIDENTS Personal CNY CNY CNY CNY CNY Injury 48,500 65,000 36,500 36,500 52,500 Accidents Property CNY CNY CNY CNY CNY Damage 10,250 23,450 9,500 8,150 15,250 Accidents Source: Public Security Bureaus, Five Project Cities, May 2005

The highest accident rate is in Changji and it comes as little surprise that Changji has prioritized road safety as an integral component of this Project. However, the argument applies with equal cogency to the other four cities as well. It can be clearly observed that all road users, non-motorized and motorized, are less safety conscious than they should be and appear unaware as to the danger they pose both to themselves and other road users. The

64 Supplementary Appendix M

Project has designed a range of interventions to ensure that city roads are safer for all users but a road safety awareness program and more rigorous enforcement of traffic regulations is necessary. If accidents in each of the Project cities could be reduced by up to 50% over the four years that the Project is being implemented there would be substantial savings not only to households affected by a member(s) killed or injured (including permanent impairment) but also for each of the cities. The same also applies to property damage accidents. Per capita costs vary from city-to-city and these are also under-estimated but nevertheless they indicate the savings that could be made.

Woman and Child Crossing Non-Regulated Intersection in Hami

6.5 Labor Based Issues

Core labor standards developed by the International Labour Organization (ILO) in its 1998 Declaration on the Fundamental Principles and Rights at Work will be largely complied with in this Project. The one important exception is the freedom of association and the right to collective bargaining. This is largely non-existent in China and it is unrealistic to expect that this Project can embrace this basic right. Rather the Project can deal with the following issues: (i) occupational health and safety; (ii) minimum wages and payment of wages; and, (iii) labor administration (including labor inspections). The Project can also address such issues associated with the cultural rights of ethnic minority workers to take time off to participate in regular religious rituals (e.g. Friday Prayers at the Mosque for Muslim workers), the need to observe certain practices demanded by their religion (e.g. fasting during daylight hours in the Muslim month of fasting) or being able to fully participate in significant local cultural ceremonies and rituals.

Before dealing with these issues it is important to highlight the economic benefits that will be derived from the Project. Table 34 quantifies the total number of jobs that will be generated each year during Project implementation for different categories of workers11. The table also includes direct and indirect benefits. It is important to remember that 20% of unskilled jobs

11 Labor estimates have been provided by the PMO of each city for employment generation directly related to the Project and estimates for indirect employment generation by the Committee of Development and Reform in each of the Project cities. The PMO estimates have been based on a technical assessment of the civil works, which also included consultations with the TA Consultants. Supplementary Appendix M 65

Women in Urban Market Turpan directly created by the Project have been set aside for women, with preference being accorded women who are either from poor households or are vulnerable for other reasons such as being the sole-adult in the household. Ethnic minority groups that are classified as poor and vulnerable will be accorded preferential hiring treatment based on their approximate percentages in each of the five cities, which will result in approximately 265 jobs being created for women. This ensures that affirmative action is being utilized to ensure that women and ethnic minority groups are not discriminated against by this Project. For management and technical and skilled staff directly employed on the project affirmative actions based on gender, ethnicity and poverty will not apply. This is not in breach of CLS because labor in these two categories is not readily available among women and ethnic minority groups.

Table 34 – Employment Generation Each Year during Project Implementation Employment Generation for Implementation (Persons) Direct Indirect Management Management And Skilled Unskilled And Skilled Unskilled Technical Training Altay 143 929 531 60 100 60 Changji 148 510 620 444 2,040 3,100 Hami 15 35 55 20 30 40 Kuytun 20 40 70 40 80 150 Turpan 30 120 50 150 300 1,500 Totals 356 1,634 1,326 714 2,550 4,850 Source: PMOs, Project Cities, May 2008

66 Supplementary Appendix M

Road Connecting Communities in Kuytun

Table 35 quantifies estimated income earnings each year during Project implementation for the three categories of labor to be employed. It is based on the minimum average monthly earning wages of management and technical and skilled labor and daily minimum average wage for unskilled labor.12 Ancillary benefits such as those associated with the payment of social security to salaried management and technical and skilled labor have not been included in these estimated income earnings because it is assumed that most of the labor from these two categories are more likely to be permanently employed by the contractors whereas unskilled labor will be employed on a contractual basis by the contractors.

Table 35 – Income Earnings Each Year during Project Implementation Income Earnings for Operation (CNY 1,000) Direct Indirect Management Management and Skilled Unskilled and Skilled Unskilled Technical Technical Altay 5,570,000 22,667,600 10,301,400 2,340,000 2,928,000 1,396,800 Changji 4,617,600 10,506,000 9,610,000 13,852,800 50,428,800 57,660,000 Hami 243,000 385,000 504,900 324,000 396,000 367,200 Kuytun 696,000 984,000 1,162,000 1,392,000 2,361,600 2,980,000 Turpan 1,116,000 3,072,000 780,000 5,580,000 9,277,400 28,000,000 Totals 12,242,600 37,614,600 22,358,300 23,488,800 65,391,800 90,404,000 Source: PMOs, Project Cities, May 2008

12 Professional and management staff is employed for the full 12 months of the year whereas skilled and unskilled labor will be employed for 10 months of the year because it is not possible to work during the two coldest months of the year, especially in Altay, Changji and Kuytun. It is assumed that civil works will be completed in Hami within 2.5 years, Changji, Kuytun and Turpan within 3 years, and Altay within 3.5 years. Supplementary Appendix M 67

The positive impacts are quite clear. Unskilled labor employed for the duration of the Project being implemented will have a job that they might not otherwise have without the Project. Despite the temporary nature of such employment it enables unskilled labor to contribute to household expenditure and/or accumulate some savings, which only the paid wage labor or some other form of IGA is capable of providing. As noted in Section 6 this is particularly beneficial to women who argue that without outside paid employment their households will always remain less well off. However, an equally important impact is the empowering experience that being a paid wage worker brings to people hitherto unemployed or underemployed. It also creates the possibility that these temporary wage laborers can use accumulated savings to persuade financial service providers to make additional finance available for the establishment of small businesses or similar. It is the employment generation activities that are the most significant poverty reduction initiatives of this Project.

Income earned by unskilled workers during Project implementation will inject into the local economy of each of the five cities a significant cash-flow that would have been non-existent without the Project. In Altay during Project implementation this amounts to CNY 36,054,900; Changji CNY 28,830,000; Hami CNY 1,514,700; Kuytun CNY 3,486,000; and, Turpan CNY 2,340,000. Even management and technical and skilled labor from outside the Project cities will still need to spend a portion of their earnings on accommodation, food and recreational services. This has the multiplier effect of generating a greater demand for goods and services available locally and can be classified as the indirect positive impacts of the Project.

The above arguments are based on the assumption that all labor will be paid at least the legal minimum average wage although it is recognized that wage levels for management and technical labor will be considerably in excess of the legal minimum wage payment for all categories of paid labor in XUAR. It is also assumed that labor employed on the Project will be paid their wages on a regular basis. To ensure that contractors both pay at least the legal minimum wage and pay these wages on a regular basis the IAs in each of the Project cities will confirm both wage levels and actual receipt of wages with labor employed on the Project. However, it is assessed based on previous experiences in XUAR that these two conditions will be complied with.

There are some occupational health and safety risks associated with this Project that need to be mitigated. Occupational health risks will include the use of physical labor to perform tasks such as digging trenches that are best left to mechanical diggers because labor costs in the Project cities is relatively inexpensive or the preparation and application of hot asphalt without adequate knowledge as to the danger of hot asphalt or the wearing of appropriate safety clothing including gloves, face visors and boots. Other risks will be associated with higher than normal noise and dust levels will impact upon all workers but especially unskilled workers who may not be used to working under such conditions. The EMP also addresses this problem to ensure appropriate mitigation measures are undertaken. Yet other risks will be associated with the use of power tools, including jack-hammers and earth compactors, which unskilled workers with some training are able to operate quite efficiently.

The real risk to OHS on this Project is that few of the unskilled workers to be employed are likely to have the ―work-sense‖ necessary to safely undertake the tasks allocated them without some form of on-the-job-training. However, for this training to be effective it is necessary for the contractors to develop an Occupational Health and Safety Plan that needs to be adhered to. As with other safeguard documents it also needs to be translated into at least Uyghur and Kazak as well in non-technical language and with appropriate graphic illustrations. It is also necessary for inspectors from the Labor Bureau to ensure that contractors and labor alike adhere to this Plan and this includes also ensuring that workers wear the appropriate protective safety clothing and observe necessary safety requirements.

68 Supplementary Appendix M

Additionally, the contractors need to adopt a proactive approach and ensure that during civil works local people, especially young children, are not placed at risk. This not only includes the placement of appropriate warning signs and illumination of incomplete worksites during the hours of darkness but also assisting local people traverse sections of the alignment being constructed. It has been observed that local contractors in XUAR are not very diligent in this respect and their lack of diligence exposes all people to unnecessary risk. Prior to the award of contracts the IAs will need to assurances from the potential contractors that they will address such risks during the construction phase.

6.6 User Affordability

Table 36 includes details of value of services related to this Project in the five cities. It can be seen that only in two of the cities do people interviewed as part of the SES believe that they get full value for public transport services. The issue is not one of fares paid (see Table xx below) but whether public transport actually meets people’s needs. Because public transport operates along fixed routes and generally ceases operations by 10pm at the latest it cannot meet the needs of all people who are reliant on public transport. For people who have fixed journeys every day to work or school public transport is adequate except in peri-urban areas but it is not adequate for those women or the elderly with different transport requirements. Hence it comes as little surprise that most existing public transport users in three of the five cities are not prepared to pay increases, and even where they are as indicated in Table xx below the increases are very modest ranging from 5-10%. Ethnic minority and poor and vulnerable households (with the exception of Turpan) interviewed for the SES are neither wholly satisfied with existing services nor are they prepared to pay a fare increase unless it could really be demonstrated that their specific needs were met by the operators of public transport.

Table 36 – Value of Services Available in Project Cities Altay Changji Hami Kuytun Turpan GENERAL HOUSEHOLDS Full Value for Public Transport Services No Yes Yes No Yes Full Value or Private Transport Services Yes N/A N/A No N/A Prepared to Pay Fare Increases for Improved Transport Services No Yes No No Yes Full Value For Garbage Disposal No No No No No Prepared to Pay Higher Tariff for Garbage Disposal Yes Yes Yes Yes Yes ETHNIC MINORITY HOUSEHOLDS Full Value For Public Transport Services No No No No Yes Full Value For Private Transport Services Yes N/A N/A No Yes Prepared to Pay Fare Increases for Improved Transport No No No No Yes Services Full Value For Garbage Disposal No No No No No Prepared to Pay Higher Tariff for Garbage Disposal Yes Yes Yes Yes Yes POOR AND VULNERABLE HOUSEHOLDS Full Value For Public Transport Services No No No No No Full Value For Private Transport Services No N/A N/A No Yes Prepared to Pay Fare Increases for Improved Transport Services No No No No No Full Value For Garbage Disposal No No No No No Prepared to Pay Higher Tariff for Garbage Disposal Yes Yes Yes Yes Yes Source: SES, February-March, 2008

The situation for garbage disposal is even more unequivocal. Irrespective of the socioeconomic background of the household interviewed for the SES none of the Supplementary Appendix M 69 households were satisfied with the existing collection system. The reason being that garbage collection it is not frequent enough during the non-winter months and often goes uncollected during the winter months for quite long periods of time according to all people interviewed. Households were prepared to dispute local PMO claims that garbage is collected at least once a week during winter and bi-weekly at other times of the year. Instead they argued that in downtown areas there is a more regular garbage collection service, something that is not denied by all PMOs who are arguing this is the reason they are seeking garbage compaction trucks and garbage skips to increase frequency of coverage and quantities that can be collected.

Uncollected Garbage during Winter Months in Kuytun

However, all households interviewed according to Table 37 are prepared to pay an increase in monthly tariffs for garbage collection: from a low of 10% among poor and vulnerable households in Hami (increase from CNY 2.25 per capita to CNY 2.50 per capita) to a high of 100% among non-poor households in Changji (increase from CNY 1.25 per capita to CNY 2.50 per capita, Hami (increase from CNY 2.25 per capita to CNY 4.50 per capita with exception of ethnic minority groups with increase from CNY2.25 per capita to CNY 2.80 per capita), and Turpan (increase from CNY 2.00 per household to CNY 4.00 per capita). Even though the SES could not systematically quantify the actual solid waste per capita in each household many poorer households claim better-off households generate more solid waste than they do because they can afford to consume more products that generate solid waste than poorer households. They think households should be charged on the basis of the solid waste they generate not on the basis of a fixed fee but of course do not think the city government will introduce such a system. What they really want is for all solid waste to be disposed of because they do not like its stench, appearance, danger to children, and the threat of disease uncollected solid waste brings to all households.

70 Supplementary Appendix M

Table 37 – User and Affordability Issues Altay Changji Hami Kuytun Turpan GENERAL HOUSEHOLDS Willingness to Pay Higher Transport Fares and Charges to Reduce No Yes No No Yes Exhaust Emissions What PercentageIncrease Able to Pay for Increased Fares - 10% - - 5% Willingness to Pay Higher Waste Management Fees to Improve Private Yes Yes Yes Yes Yes and Public Hygiene What Percentage Increase Able to Pay for Increased Management 50% 100% 50% 100% 100% Fees ETHNIC MINORITY HOUSEHOLDS Willingness to Pay Higher Transport Fares and Charges to Reduce No No No No Yes Exhaust Emissions What Percentage Increase Able to Pay for Increased Fares - - - - 15% Willingness to Pay Higher Waste Management Fees to Improve Private Yes Yes Yes Yes Yes and Public Hygiene What Percentage Increase Able to Pay for Increased Management 50% 100% 25% 100% 100% Fees POOR AND VULNERABLE HOUSEHOLDS Willingness to Pay Higher Transport Fares and Charges to Reduce No No No No No Exhaust Emissions What Percentage Increase Able to Pay for Increased Fares - - - - - Willingness to Pay Higher Waste Management Fees to Improve Private Yes Yes Yes Yes Yes and Public Hygiene What Percentage Increase Able to Pay for Increased Management 25% 25% 10% 15% 45% Fees Source: SES, February-March, 2008

Table 38 contains details of actual costs of transport and waste management services in each of the five Project cities. Bus passengers in Altay pay 30% less for a single journey on a public bus than they would in the other five cities although in Hami bus passengers pay 50% more for journeys over 6.5kms than they do in the other cities. As most ethnic minority households are located more than 6.5kms from the city center of Hami they are required to pay more than other residents of Hami living closer to the city center. Taxi fares in Altay are 40% lower than in the other four cities but Hami has night surcharges that add 16.66% to the flag-fall and 30% to the additional kilometer charge. However, it can be noted with differential fares for day and night taxi hire Hami is not short of taxis at night-time: the issue is whether the poor can afford them in all but emergency situations (e.g. illness of family member). It is possible to hire NMTs in four of the five cities and fares are not set by city government for these NMTs although as noted in Hami a 50% surcharge appears to be applied during the tourist months.

Table 38 – Actual Costs of Transport and Waste Management Services (CNY) Altay Changji Hami Kuytun Turpan 1.0 (to 6.5 km) Single Journey 1.5 (6.5-15km) 0.5 (Downtown) On 0.70 1.0 1.0 2.0 (15 – 20km) 1.0 (Elsewhere) Public Bus 2.5 (over 20km) Single Journey 5.0-10.0 (inter On 1.0 - - - township travel) Private Bus Typical Single 3.0 (first 3 km) 5.0 (first 3 km) 5.0 (first 3 km) 5.0 (first 3 km) 5.0 (flat fare in Journey by Taxi 1.2 (additional km) 1.2 (additional km) 1.4 (additional km) 1.3 (additional km) city) (day-time) Typical Single 6.0 (first 3 km) Journey by Taxi No Difference No Difference No Difference No difference 2.0 (additional km) (night-time) Typical Hire 3.0 – 5.0 (50% 2.0 (but only in Charge 5.0 – 10.0 2.0 – 5.0 surcharge during No Service peri-urban area) For NMT tourism months) Monthly Disposal 2.25 per HH Fee for 2.0 per capita 1.25 per capita 5.0 per HH 2.0 per HH 1.5 per APT Solid Waste Source: SES, February-March 2008.

Supplementary Appendix M 71

Monthly disposal fees are based either on a per capita basis or a fixed fee per household. In all instances the fees are a flat fee and not based on the quantity of solid waste generated by individual households. As pointed out above poorer households do not think this is a very fair system because they generate less solid waste than better-off households.

Solid waste management issues are very important in the context of both household and public hygiene in all five cities. Official collection, treatment and disposal rates for solid waste in each of the five cities indicate there are few problems with most solid waste being collected and disposed although only Changji and Kuytun have the capacity to treat solid waste prior to its disposal. In the other three cities solid waste is not treated prior to disposal. This Project is not financing the treatment of solid waste but it enhancing the capacity of all cities with the exception of Hami (claims all solid waste can be collected) to improve their collection rates via the provision of garbage compaction trucks and grapple trucks. However, if solid waste generation is based on a per capita generation of 1.5 kilograms per day then using the official collection estimates would indicate that not all garbage is being collected.

The TA Consultants undertook a quick survey of 50 households in Turpan and found they generated approximately 1.5 kilograms of solid waste per day per capita. The lowest collection rates are in Hami at 43% and the highest collection rates in Changji at 86%. In Altay the collection rate is 72%, Kuytun 43%, and Turpan 51%. The vehicles to be procured will not result in all garbage being collected but for instance in Kuytun procuring 4 trucks able to collect 24 tons of waste per day will result in an additional 96 tons of waste per day or 35,040 tons of waste per annum to be collected: this would leave a deficit of 60,353 tons to be collected but it is a one-third improvement on existing collection rates.

If the official estimates of 210 tons per day in Kuytun are more correct the vehicles procured meet the city’s existing needs but this is based on lower per capita generation rates than are likely. It also needs to be noted that there are few cities in developing countries where there all solid waste generated is effectively disposed of in an environmentally sound manner.

However, improving collection rates in four of the five cities has a number of important health impacts that can be noted here:

 Relatively small quantities of infectious and toxic waste, such as bottles containing hazardous types of pharmaceutical products, photographic materials, batteries, infectious health care wastes and sharps and other substances can turn benign waste into potentially dangerous waste, with attendant serious public health impacts if it remains uncollected or is not fully collected;  Storage of waste leads to adverse public health impacts, notably (i) creating fertile grounds for the breeding of household pest, (ii) animals feeding on waste, and (iii) obstructing natural or person-made drainage channels leading to the formation of ponds that then serve as breeding grounds for insects and other carriers of human pathogens;  Background dumping or storage of waste often creates noxious odors that result from the decomposition of biodegradable materials and breeding grounds for insects and rodents that are potential carriers of infectious diseases;  Sanitation activities minimize or eliminate the potential of humans coming into direct contact with putrefying waste and uncollected garbage piles up in human settlements, resulting in inhabitants will be exposed to direct health impacts.

Therefore even if the actual quantity of solid waste materials to be collected as a result of the Project are subject to some debate the improvement in collection rates on minimizing health risks to city populations is not.

72 Supplementary Appendix M

There are a range of injuries and chronic diseases and bacterial, viral or parasitic infections that are either directly or indirectly attributable to the poor management of solid waste. They are as follows:

 Cuts and infections from sharp waste (the TA Team found people in all cities with cuts and infections caused by sharp waste including tin cans and glass bottles)  Burns and respiratory trauma from burning waste (the TA Team found respiratory trauma among people living close to where waste is burned in Hami and Turpan)  Burns or wounds from hazardous chemicals in waste (the TA Team did not find anyone suffering from such wounds but came across examples of hazardous chemical waste, especially that generated by individual households)  Toxicity and cancers from exposure to hazardous waste (hard to find any but anecdotal evidence on this in any of the five cities)  Chronic respiratory disease from exposure to dust (asthma is a problem in all cities with the exception of Altay but it was difficult to link this to dust alone)  Bacterial (tetanus, staphloco cus, streptoco I cus) or viral (hepatitis B, AIDS) blood infections caused by sharp waste (public health workers said there were some cases directly attributed to sharp waste)  Eye (trachoma, conjunctivitis) and skin (mycosis, anthrax) infections from waste- generated dust (unquantifiable cases of trachoma and conjunctivitis and mycosis and pharmaceutical shops said they treated more cases of conjunctivitis in summer than winter)  Respiratory infections (bacterial or viral pneumonia) from exposure to waste-generated infected dust (difficult to prove in any of the cities because most public health workers attribute respiratory infections to coal-dust during the winter months)  Bacterial (diarrhea), viral (dysentery) or parasitic (helminthiasis, amoembiasis, giardiasis) enteric diseases transmitted by insects and rodents feeding on waste (numerous examples in all five cities and these infections are on the increase);  Drinking water contaminated by leachate from waste (some evidence among ―floating population‖ especially in Kuytun)  Eating food contaminated by leachate from waste (some evidence among ―floating population‖ especially in Kuytun)  Zoonosis carried by stray animals and rodents feeding on waste (rabies, plague, lesihmaniasis, hydatitis and tick-borne fevers)

The Health Bureau in each of the five cities supplied data for the past three years and in all cities hepatitis B, diarrhea and dysentery is on the increase. There is some reluctance to attribute this increase entirely to the poor management of solid waste, although each bureau argued during consultations that it is necessary to conduct an awareness program among all people to make them aware of the health benefits of improved management of solid waste. It is generally believed at the household level that women are the effective managers of solid waste therefore women need to be targeted so they are aware of improved management at the household level. There is also a need to target ―floating populations‖ because they have less ownership over environmental health issues than the permanent population but they are more likely to fall ill than the rest of the city population. Garbage collection, treatment and waste workers also have to be targeted because they are the highest-risk group but there is a consensus that real awareness begins with young, school-age children. Supplementary Appendix M 73

7. CONSULTATION AND PARTICIPATION STRATEGY

7.1 Stakeholder Analysis during PPTA

Stakeholder analysis has been conducted during the PPTA via public participation and consultation with key stakeholders, including all city bureaus in each of the five cities with either a direct or indirect stake in this Project, APs, business communities, and civil society organizations. Ten bureaus13 in each of the five cities were consulted and typically 15-20 persons were present, including representatives of the PMO and often the local Party Secretary. Approximately 185 city bureau personnel participated in these consultations. Consultations with APs numbered 680, of whom 339 were females, 387 ethnic minority peoples of whom 194 were women, and poor APs numbering 88 of whom 48 were women. Five different business communities in each of the five cities were consulted, totaling 75 persons of whom 36 where female and 20 were from ethnic minority backgrounds. There are few civil society groups in the Project cities but in each of the Project cities consultations were undertaken with Community Residential Centers (CRC) and in Hami and Turpan with the Islamic Association.

In addition to the SES, stakeholder consultations and FGDs, and interviews were conducted with key informants. A total of 806 persons were interviewed for the SES of whom 407 were female, 289 persons from ethnic minority backgrounds of whom 148 were females, and 69 poor households of whom 40 were from ethnic minority backgrounds (see Table 1, p.7). Thirty-five FGDs, involving up to 20 participants, were facilitated among (i) male and female mixed groups; (ii) female only groups; (iii) poor and vulnerable groups; (iv) ethnic minority groups; (v) public sector groups; and, (vi) private sector groups. A total of 700 persons participated in these FGD, although over 350 were consulted for various other reasons (e.g. APs, SES interviews, some bureau officials, and some private sector representatives (see Appendix IV). Key informant interviews were held with 15 key informants in each of the five cities, numbering 75 key informants of whom 38 were women and 35 from ethnic minority groups.

The purposes of these consultations are provided in Section 2 of the SPA and here it is only necessary to state that apart from the SES, which was designed to establish baseline socioeconomic data of relevance to the Project, the stakeholder consultations exemplified primarily by the use of FGDs, were designed to discuss issues of direct relevance to the Project. The key informant interviews on the other hand were designed to provide a range of insights into local economic and social development in each of the five cities, including the historical dynamics of settlement in these cities.

7.2 Strategy for Project Design/Monitoring/Implementation

A participatory approach to project design was adopted by the TA Consultants to ensure that all stakeholders would be included in the processes whereby they could claim ownership of the Project. Attempts were made to ensure that the participatory approaches were of sufficient breadth and depth to facilitate the type of stakeholder engagement necessary for the successful design of the Project. This was quite a difficult undertaking because most of the PMOs were unfamiliar with participatory approaches to project design. It was confided at the outset that typically project design was influenced by the priorities of local city officials who decreed what type of projects should be identified, how they should be designed, and then how they should be implemented. Such modalities were not dependent on the participation of the local citizenry of the city. While the PMOs would accept all local citizens

13 Included in these consultations was the All China Women’s Federation, which is sometimes incorrectly identified as a NGO or civil society group. The ACWF is rather a mass organization that receives financial support directly from the government.

74 Supplementary Appendix M

(―floating population‖ not considered to be stakeholders) could broadly be defined as stakeholders it was more difficult to accept the proposition that representatives of the local citizenry should be actively consulted. Nevertheless, all PMOs agreed with the TA Consultants that to meet ADB requirements a program of consultation with local stakeholder groups should be facilitated.

Initially the PMOs had to outline to other stakeholders, including other local city bureaus, what the Project entailed or at least their version as to what the Project entailed. It became very clear that there had been no stakeholder consultation on what roads should be prioritized for upgrading or whether other Project-related activities associated with improving urban transport for all road-users (e.g. footpaths, street lighting, bus stops or pedestrian crossings). In relation to environmental sanitation improvements these were not even mentioned, except very perfunctory (a few rubbish tins here-and-there and some public toilets), and the overall impression of non-PMO stakeholders was that this Project was simply concerned with upgrading or building new roads in the city. When asked to explain the purpose of the Project the PMOs would explain the real purpose was to extend roads into new development areas of the city to support increased industrial activity, raise the level of the local economy, and reduce the incidence of poverty.

It was considered important that the PMOs adopt a broader approach to Project design, including a better understanding of the socioeconomic conditions of households to be surveyed, so a decision was made to contract the PMOs to undertake the SES. This decision was fraught with a range of risks, including whether or not PMO enumerators would take the SES seriously or would be able to understand the necessity of generating a representative sample of households to be surveyed. None of the PMO staff had ever participated in an information-gathering exercise of this nature in the past but the TA Consultants provided training in survey techniques, worked through the survey questionnaire with each PMO, and provided quality assurance during the actual SES. The major issue was generally PMO definitions of urbanity. It was very difficult for the PMOs, consisting as they do of generally technical staff with no training in the social sciences (especially economic geography and sociology) to understand urban-rural linkages and they only wanted to focus on what they considered to be purely urban-centered Project-based issues.

It was also considered important that representatives of the PMOs participate in the FGDs because of the need to understand more participatory approaches to project design. The PMOs sought to ―script‖ FGDs to affirm that the existing design of the Project should be validated by FGD participants but fortunately many of the FGD participants demonstrated unequivocally to the PMOs that the existing designs did not necessarily concur with their own priorities. The PMOs found that the dynamics of these FGDs were beyond their control because the facilitators were from an Eastern China university who were tasked with ensuring that the PMOs did not ―capture‖ the FGDs. The opportunity presented itself for the PMOs to experience FGDs that discussed issues rather than answered questions. The PMOs also found out that FGDs are restricted to participants sitting around a table discussing issues but in many instances (even when it was very cold outside) FGD participants sought to undertake a transect of the proposed roads to point out where they would like footpaths to be constructed, street lighting installed, and pedestrian crossings located.

Of equal importance the PMOs learned via the FGDs that they had a very limited conception of urban transport improvements, especially in relation to NMT and MMT. The PMOs were also exposed to the social reality that urban transport priorities are not necessarily the same for men and women or for the poor and vulnerable. In relation to environmental sanitation improvements the PMOs were also exposed to the social reality that women are more responsible for the disposal of solid waste generated on a household basis than men. But most importantly the PMOs were exposed to the dichotomy between ―engineered‖ Supplementary Appendix M 75 approaches to urban development and the necessity to link such approaches with urban social and environmental issues. This has been partly reflected in Project design as will be illustrated by the saga of the Hami mosque that is provided below.

In January the TA Team Leader alerted the Hami PMO that it was probably not a good idea to demolish a mosque in Hami to widen an existing road to improve east-west linkages, which while perhaps making sense in terms of transport planning, would create a range of social and political issues outweighing the infrastructural improvements. The Hami PMO’s response was that the Mayor of Hami wanted to demolish this mosque and build a newer and more impressive mosque. The TA Resettlement Specialist, Ethnic Minority Development Specialist and Social Development Specialist attempted to dissuade the Hami PMO but to no avail. Very perfunctory consultations were arranged by the Hami PMO with the local Uyghur population but even at these consultations it was quite clear that the demolition of this mosque did not meet with a broad consensus among the Uyghur stakeholders. The Imam and Secretary of the Islamic Association (both representatives of civil society groups) attempted to argue they could persuade local stakeholders to support the demolition of the mosque because (a) they would get a new mosque and (b) the newly upgraded road would be of benefit to all people living close by (ignored the houses demolished and resettlement of APs).

During an ADB mission in late April 2008 the ADB’s Social Development Specialist responsible for Resettlement pointed out to the Mayor and PMO of Hami that if they wanted to demolish the mosque it would be necessary to facilitate far more intensive consultations than had been facilitated to date, including the necessity to fully document all processes associated with these consultations. During the public consultations attended by the ADB’s specialists it was also noted that non-Uyghur participants (Hui women and men who do not have any association with the mosque to be abolished) were in attendance at the consultations. This was not pre-arranged by the PMO but rather the Mayor and indicated very clearly that the PMO were not in a position to influence the outcome either way. The motivations for scripting this meeting are not important here but it did not auger well for participatory processes to reach a workable consensus vis-à-vis this mosque.

Wider and more in-depth consultations were required by the ADB and the TA Consultants set about preparing for these consultations. However, a decision was made to meet with a range of Uyghur groups and other experts at the regional level to determine what would be the most appropriate strategy to generate a win-win outcome for all stakeholders. After these discussions, which included the provincial PMO and Hami PMO, it was decided that a new alignment as originally suggested by the TA Team Leader, should be chosen. The Hami PMO were pleased with this outcome although the Mayor of Hami was less than happy but realized that the weight of professional advice and local public sentiment was not running in his favor. For the Hami PMO the whole mosque saga has demonstrated the need to undertake social assessments of a broadly participatory nature during the design of urban improvement projects.

76 Supplementary Appendix M

Initial Consultations at Hami Mosque

At the other end of the spectrum in Altay the PMO in consultation with the poorest of the communities living in their city decided that the Project’s focus was too limited in relation to the provision of public toilets. Based on the PMO’s own analysis, in part influenced by activities associated with preparation of the RP and EMDP, especially the SES and FGDs, this local community was asked what were its major priorities that could be financed within the scope of this Project. There was a significant consensus from most of the households consulted that one of their most important priorities was not simply the construction of public toilets but also public bathrooms. The reason being that over 80% of households in the designated community could not afford to finance the construction of their own bathrooms nor could they afford to pay for the recurrent costs of electricity to heat water during the long winter months. FGDs were facilitated at the local CRC and it was found that the ethnic minority groups, especially the Uyghur, Kazak and Hui, wanted the bathrooms designed in such a way that individual privacy would be assured. Even though the investment cost will be substantially higher the PMO has agreed to adjust its design of these public toilets/bathrooms to accommodate this community-based demand. The PMO has also been active in assisting the local community to determine how best to operate and maintain these facilities once they are constructed.

Somewhere between the Hami and Altay examples is an example from Turpan that has resulted in a rethink of Project design by the Turpan PMO. Initially it was proposed by the Turpan PMO that a road to connect the older area of the town with a newer area of the town earmarked for an eco-friendly industrial and residential complex would require the widening of an existing road and the demolition or partial demolition of up to 100 traditional Uyghur houses and grape drying buildings. The TA Consultants argued it was necessary to discuss this proposed road upgrading more closely with the locally affected householders. The Turpan PMO agreed although argued the proposal was part of the existing Master Layout Plan for Turpan and could not easily be over-turned. The outcome of the participatory-based Supplementary Appendix M 77 consultations was that local stakeholders were opposed to the plans of the PMO, arguing that tourism is one of the key drivers of Turpan’s economy and that ridding Turpan of part of its primary attraction for tourists (its traditional Uyghur architectural characteristics) was counter-productive. As a result of this the PMO consulted with the city mayor and it was agreed that this road should be left untouched.

The Xinjiang Municipal Architecture Design Institute (XMADI) responsible for the initial scoping of resettlement impacts and assisting the PMOs design EMDPs had very limited experience with participatory approaches to project design. XMADI was good at networking with each of the city PMOs but had little understanding of why it needed to link the PMOs with other stakeholders. The TA Consultants found that it was necessary to oversee XMADI in the preparation of the EMDPs because XMADI was basically designing a generic EMDP for all of the Project cities without taking into account the sociological specificities of ethnic minority groups in these cities. It was further discovered that XMADI was not taking the preparation of the EMDPs very seriously, approaching the preparation of the EMDPs as an onerous task imposed upon it by ADB safeguard policies. The PMOs had to direct XMADI to adopt a more participatory approach to project design, which has been partially successful but nevertheless a substantial advance on the approach of XMADI at the beginning of the design phase.

A Social Action Plan (SAP) has been designed by the Project based on wide-ranging consultations with a representative sample of stakeholders in each of the five cities. A detailed matrix has been prepared and included in Section 11 of this SPA. Here it is adequate to note how the SPRSS is linked to the SAP and the overall C&P. The final design of the C&P will follow loan fact-finding either in late July or early August 2008 but it can be noted here that the C&P will contain a variety of approaches to ensure links with the SPRSS and safeguards requirements. It will also describe how the C&P will be utilized during Project implementation, the methods to be used, time-line and sequencing of C&P methods, stakeholders’ roles and responsibilities for C&P activities, whether C&P facilitators are required, and costs of implementing the C&P. A draft C&P Summary Chart has been included as an appendix to this SPA (see Appendix V).

By the time the Project is approved and in accordance with the SPRSS public disclosure of all Project documents will be made at the EA in Urumqi and each of the IAs in the five Project cities, including in appropriate ethnic minority languages, and on the ADB website. This will include: (i) Project Information Document (PID); (ii) design and monitoring framework; (iii) EMDPs; (iv) RPs; (v) summary EIA; (vi) RRP; (vii) public sector legal agreement; (viii) Project administration manual; and, (ix) social and environmental monitoring reports.

A PID will have been prepared for each of the 5 Project cities. Booklets outlining the RPs will be distributed to the affected households and disclosure meetings held. Copies of the booklet will be made available at each of the PMOs, and each affected CRC. Each PID (available in Chinese, Uyghur and Kazak) will contain: (i) map of the affected areas; (ii) description of the Project, its aims, and sub-components; (iii) details of the works; (iv) a timetable of the Project activities, including estimated commencement and completion dates; (v) expected social, economic, and environmental impacts; (vi) environmental and social safeguards; (vii) the compensation policy and entitlements; (viii) an outline of livelihood restoration measures; (ix) the working of the compensation committee and grievance redress committees; (x) an outline of how consultation and participation with RPs and communities will continue; and, (xi) the Project communication strategy, including how people can find out what business opportunities that may arise in conjunction with the Project and where people can get further information about the Project. RPs and EMDPs indicate how consultation will continue throughout implementation.

78 Supplementary Appendix M

7.3 Post-Project Participation Strategies

The ADB requires that Projects it finances be subject periodic post-project evaluation to determine whether specific project outcomes achieved their stated objectives and can be sustained. In relation to this Project it is argued that post-project participation strategies should include the capacity of local communities to make demands in the fields of urban transport and environmental sanitation improvements that would result in livelihood improvement outcomes satisfactory to them rather than just simply validating the Project’s specific outcomes. During the design of this Project local communities have identified a range of outcomes involving participation strategies they have become more familiar with as a result of the consultation processes facilitated during the design of this Project.

The major post-project participation strategy is one where local city authorities are prepared to assess based on participatory consultations with all stakeholder groups, including poor and vulnerable groups, which urban transport and environmental improvement projects should be financed. This would include the processes whereby prioritization is based on a range of social, economic and environmental criteria, especially pro-poor and pro-gender criteria designed to facilitate greater levels of social inclusion. During the FGDs many participants argued their city should be transformed into a more citizen-friendly city although not at the expense of greater levels of economic development. The FGDs provided all stakeholders who participated with a range of learning experiences in participatory urban development, which will be carried through during the implementation of the Project that they had not experienced in the past. This has proved to be an empowering experience that should not be squandered in the post-Project period. Indeed greater community empowerment should be one of the most important positive outcomes of this Project.

Each of the city governments will be expected to provide a more sophisticated initial social assessment for ensuring they are better prepared for subsequent externally financed projects, irrespective as to whether they are financed internationally by multilateral development financial institutions or domestically by either the national or regional government. The FGDs provide local city governments with good qualitative social data but there is also the need for reliable quantitative socioeconomic baseline data. Official statistical databases in existence are not satisfactory for the most part because they are neither statistically or sociologically representative enough to generate the socioeconomic data that is also required to assess impacts of specific project design measures. The SES used for this Project design is adequate in some respects but a more systemic SES with a more sophisticated conceptualization of urbanity is necessary, especially to capture urban-rural linkages and the importance of competing and complementary stakeholder demands in the Project cities.

During Project design it has been demonstrated that CRCs are very useful venues for local communities to meet and discuss any range of urban development issues. There was also sufficient evidence from the consultation processes during Project design that elite capture of Project design in local communities, while somewhat important was not overly pervasive. However, there is also scope for existing civil society groups, especially community-based organizations to play a more important role in mobilizing local communities to articulate their demands in the overall urban development planning process. Here the emphasis should not of course be simply on poor and vulnerable groups but also those based in the world of commerce including small business-people. At the outset of this Project the local PMOs did not always have a very good understanding of social and poverty issues in their respective cities or how this Project could be leveraged to promote greater levels of social development and poverty reduction. This is an institutional weakness that would be enhanced by greater levels of connectivity with local communities.

Supplementary Appendix M 79

Finally, post-Project participation strategies need to recognize that any form of effective participation is always time-consuming in terms of human resources and expensive in terms of financial resources. Yet it was also learned from listening to FGD participants that if they were more meaningfully consulted and given the opportunity to assist in the design, implementation, and evaluation of subsequent urban development projects they would be able and willing to devote some of their time without expecting payment in return. Of course the usual provisos apply in relation to appropriate times to consult mothers with young children or taking into account the religious rituals of ethnic minority groups but FGD participants argue such provisos are not that difficult to overcome.

80 Supplementary Appendix M

8. MONITORING AND EVALUATION PLAN

8.1 Introduction

The participatory monitoring and evaluation plan has been designed to monitor and evaluate the social and poverty impacts of the Project. It is expected that the monitoring and evaluation plan will generate relevant data and information required to assess and quantify the potential social and poverty impacts of the Project, as implementation progresses. The monitoring and evaluation plan will form an integral part of the Project Performance Management System (PPMS).

8.2 Objectives and Approach

The objectives of the monitoring and evaluation plan are to set out a method to assess changes in the social and poverty conditions of each of the five Project cities as a consequence of the Project. The plan will generate the following:

Data and information to identify effects and project impacts including qualitative and quantitative information to describe social and poverty changes; Analyze and document the results for future planning of urban transport and environmental improvements and associated poverty reduction interventions in each of the five Project cities; Initiate participatory approaches required to plan and implement complementary activities and to facilitate synergies between this Project and these activities; and, Focus on key actions and processes learned from the Project for replication and up- scaling for those areas of each Project city that will not directly benefit from this Project.

One of the difficulties in the planning and evaluation of projects is the lack of reliable data to quantify the impact resulting from access to project-induced improvements. The SES for this Project provides some of this data but it will be necessary for the proposed monitoring and evaluation plan to fill any gaps identified when analyzing the SES data and generate more useful data.

The approach proposed is consistent with participatory forms of assessment and techniques, and is supported by statistical data. This approach is designed to ensure that the Project beneficiaries in each of the five cities (especially ethnic minority, women and poor beneficiaries), actively participate in the monitoring and evaluation processes by sharing information and acting upon such information and are not relegated to the more passive role of simply providing information.

The identification of key indicators in order to monitor the impact of the urban transport and environment improvements is a part of the monitoring and evaluation plan. The monitoring program will be of a long-term and iterative nature and will commence when the Project begins in each of the five cities. Once initiated, monitoring will continue. The executing agency (EA) in Urumqi and the five Project implementing agencies (IAs) have agreed to provide the necessary staff that will be responsible to visit the selected sites at appropriate intervals and record the key changes and impacts in close collaboration with people impacted upon by the Project.

Supplementary Appendix M 81

8.3 Information to be collected

The collection of data should be kept to a minimum and concentrate that is otherwise unavailable. The following list in Table 39 provides some broad indicators that are of greatest importance:

Table 39 - Major Monitoring Indicators Monitoring Indicators Monitoring Mechanisms GDP per capita and GDP growth of Altay, Changji, Hami, Official statistics of the Statistics Bureau in Altay, Changji, Kuytun and Turpan Cities Hami, Kuytun and Turpan Cities. GDP per capita and GDP growth of areas of Altay, Changji, Official statistics of the Statistics Bureau in Altay, Changji, Hami, Kuytun and Turpan Cities directly affected by the Hami, Kuytun and Turpan Cities Project. Income and expenditure per capita of households in Altay, Official statistics of the Statistics Bureau in Altay, Changji, Changji, Hami, Kuytun and Turpan Cities Hami, Kuytun and Turpan Cities Income and expenditure per capita of households of areas of Official statistics of the Statistics Bureau in Altay, Changji, Altay, Changji, Hami, Kuytun and Turpan Cities directly Hami, Kuytun and Turpan Cities. affected by the Project. Employment and unemployment rates of Altay, Changji, Official statistics of the Statistics Bureau in Altay, Changji, Hami, Kuytun and Turpan Cities Hami, Kuytun and Turpan Cities Poverty incidence using US$1 and US2 per day, per capita Socioeconomic Baseline Data generated from the Project (equivalent in CNY) in Altay, Changji, Hami, Kuytun and SES in 2008. Turpan Cities Poverty Incidence using US$1 and US$2 per day, per capita Socioeconomic Baseline Data generated from the Project (equivalent in CNY) of areas in Altay, Changji, Hami, Kuytun SES undertaken in 2008. and Turpan Cities directly affected by the Project. Households receiving financial support under the Minimum Records of payments made by Bureau of Civil Affairs in Living Standard Schemes of the cities of Altay, Changji, Altay, Changji, Hami, Kuytun and Turpan Cities Hami, Kuytun and Turpan Cities. Households receiving financial support under the Minimum Records of payments made or households registered with Living Standard Schemes of areas in the cities of Altay, local community centers in Altay, Changji, Hami, Kuytun and Changji, Hami, Kuytun and Turpan Cities. Turpan Cities. Number of people employed directly as a result of the Project IAs of Altay, Changji, Hami, Kuytun and Turpan Cities and during the construction phase. contractors. Number of women, ethnic minority people and poor and IAs with assistance from the All China Women’s Federation vulnerable people employed directly as a result of the Project and the Bureau of Ethnic and Religious Affairs in Altay, during the construction phase. Changji, Hami, Kuytun and Turpan Cities. Number of people employed directly as a result of the Project Socioeconomic surveys undertaken in each of the five during the operation phase. Project cities Number of women, ethnic minority people and poor and Socioeconomic surveys undertaken in each of the five vulnerable people employed directly as a result of the Project Project cities. during the operation phase. Number of new small and medium enterprises started as a Socioeconomic surveys undertaken in each of the five result of urban transport improvements. Project cities. Number of small enterprises started by women, ethnic Socioeconomic surveys undertaken in each of the five minorities and poorer people as a result of urban transport Project cities. improvements. Increase in the number of tourists in the cities of Altay, Hami Bureau of Tourism in Altay, Hami and Turpan. and Turpan Net value to Kuytun economy from supply of goods and Business impact surveys undertaken in Kuytun. services to Dushanzi Oil City and surrounding hinterland. Public satisfaction with improvements to the urban Socioeconomic surveys undertaken in each of the five environment. Project cities. Number of households in Altay City using the newly IA of Altay City and socioeconomic survey. constructed public bath-houses. Number of people using motorized transport versus non- Socioeconomic surveys undertaken in each of the five motorized transport in each of the five cities. Project cities. Number or percentage of people using multiple forms of IAs and socioeconomic surveys in each of the five cities. public transport. Number or % increase/decrease in traffic accidents, deaths, Traffic Section, Public Security Bureau in each of the five injuries and disability. cities and socioeconomic surveys. Reduction in hygiene related illnesses directly attributable to Health Statistics in each of the five cities and socioeconomic cleaner city environment. surveys. Average number of sick days per person directly attributable Health Statistics in each of the five cities and socioeconomic to environmental health conditions. surveys. Average amount spent on environmental health related Health statistics in each of the five cities and socioeconomic illnesses each month surveys. Tariff levels for SWD and transportation services Price Bureau data from each of the five cities Willingness to pay for SWD and transportation services Socioeconomic surveys in each of the five cities Affordability to pay for SWD and transportation services Socioeconomic surveys in each of the five cities

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8.4 Survey Timing and Indicators

Assessment would initially be carried out immediately before the commencement of civil works. This would provide the social and poverty baseline information and also permit the processes of community-based participation to begin. Subsequent assessments would be undertaken at project completion and then at yearly intervals for 2 – 5 years after the Project is operational. Assessments should be undertaken when the majority of residents are present, i.e., not when peri-urban dwellers in the cities of Altay, Changji, Hami and Turpan are involved with the planting and harvesting of crops or on Fridays when ethnic minority Muslim males are in attendance at the local mosque.

It is expected that the level of the following major indicators will be achieved through the implementation of the Project:

Reduced poverty (using US$2 per day, per capita for relative poverty) in Altay to 35% (45% for ethnic minority groups and 51% for single-adult households) in 2014, Changji 7% (20% for ethnic minority groups and 23% for single-adult households) by 2014, Hami 12% (16% for ethnic minority groups and 20% for single-adult households) by 2014, Kuytun 10% (14% for ethnic minority households and 23% for single-adult households) by 2014; and, Turpan 17% (18% for ethnic minority households and 28% for single adult households) by 2014; Increased employment opportunities with per capita income rising from CNY 11,480 per annum to CNY18,377 per annum in Altay by 2014, Changji from CNY21,237 per annum to CNY29,892 per annum by 2014, Hami from CNY15,720 per annum to CNY23,342 per annum by 2014, Kuytun from CNY23,207 per annum to CNY48,584 by 2014; and, Turpan from CNY11,540 per annum to CNY20,425 by 2014; Increased investment and business opportunities with increased gross domestic product rising annually by 11.7% from CNY2,035 Billion to CNY3,226 Billion in Altay by 2014; 14.5% from CNY8,919 Billion in Changji by 2014; 11.4% from CNY6,597 Billion in Hami to CNY10,358 Billion by 2014; 15.3% from CNY3,408 Billion in Kuytun to CNY6,016 Billion by 2014; and. 16.3% from CNY2,990 Billion in Turpan to CNY5,427 Billion by 2014; Reduced incidence of environmental health-related disease reduced by 10% in 2014 from 2008/09 levels in each of the five Project cities; Average number of sick days/person/year due to environmental health-related diseases reduced from 3 days per year in Altay in 2008/09 to 1 day in 2014; 7 days in Changji in 2008/09 to 4 days in 2014; 5 days in Hami in 2008/09 to 3 days in 2014; 7 days in Kuytun in 2008/09 to 4 days in 2014; and, 5 days in Turpan in 2008/09 to 3 days in 2014; Average amount spent per person per month on environmental-health-related diseases reduced from CNY35 per month in Altay in 2008/09 to CNY20 per month in 2014; CNY55 per month in Changji in 2008/09 to CNY35 per month in 2014; CNY40 per month in Hami in 2008/09 to CNY25 per month in 2014; CNY40 per month in Kuytun in 2008/09 to CNY25 per month in 2014; and CNY35 per month in Turpan in 2008/09 to CNY20 per month in 2014. Traffic accidents reduced from 0.43/10,000 in Altay in 2008/09 to 0.21/10,000 in 2014; from 0.18/10,000 in Changji in 2008/09 to 0.9/10,000 in 2014; from 0.36/10,000 in Hami in 2008/09 to 0.18/10,000 in 2014; 0.33/10,000 in Kuytun in 2008/09 to 0.17/10,000 in 2008/09; and, 0.32/10,000 in Turpan in 2008/09 to 0.16/10,000 in 2014.

Supplementary Appendix M 83

8.5 Logistics, Team Composition and Budget

A working team within the EA and each of the five IAs should be established to assume major responsibility. The survey team should consist of an experienced sociologist/socio- economist assisted by one research assistant and a participatory assessment specialist. The latter should be familiar with ethnic minority development issues in Xinjiang.

One or two training sessions based on experience with training of the local PMO staff should be adequate. These sessions should be organized by the sociologist/socio-economist and staff who should attend from the EA and IAs are those who will take part in the monitoring and evaluation and in implementing the public education and awareness program.

It is envisaged that each survey would not take more than one week. At the end of each assessment a report should be drafted highlighting the main conclusions and the next steps to be taken. A summary highlighting the main lessons learned should be prepared and circulated to the Asian Development Bank, EA and IAs. The final report should consist of an evaluation of social and poverty changes that have occurred in the five preceding years.

The working team within the EA and/or IA, trained by domestic consultants, will be responsible for the work. Ideally, a local consulting firm or university department with experience in monitoring and evaluation of ADB projects should be contracted. A visit by an international expert with expertise in participatory assessment and monitoring and evaluation in the People’s Republic of China is recommended. The independent monitoring and evaluation for social and poverty impacts will serve as part of the general monitoring and evaluation of the Project and the budget is included in the consulting services of the Project.

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9. INSTITUTIONAL DEVELOPMENT/LOCAL CAPACITY BUILDING

9.1 Incorporation of Social Safeguards

In Section 6 it was highlighted that each of the five cities had some initial problems with the incorporation of social safeguards required by the ADB into the design of the Project. While the PMOs had little difficulty understanding national and regional policy and legal frameworks as they apply to land acquisition and resettlement they had greater difficulty understanding the policy gaps between ADB’s and national/regional policies on involuntary resettlement. Additionally they had great difficulty in understanding gender-related impacts and mitigating measures, assuming that all resettlement impacts and mitigating measures are gender neutral. They also had difficulty understanding consultation and participatory approaches to resettlement, the impact dismantling community structures and social organization, and effective income restoration strategies.

As also indicated in Section 8 and incorporated into the C&P Plan is a recognition that as each of the PMOs was more closely engaged during Project design their understanding of these issues improved. Nevertheless, there remains a disjuncture between better practices and the practices the PMOs are likely to utilize during Project implementation. Therefore, it is necessary that the Project continue to work closely with the PMOs, who will be the IAs during the Project to ensure that social safeguards associated with the RP are systemically applied to ensure that APs are not disadvantaged by the Project. The RPs for 4 of the 5 cities provide measures to ensure that social safeguards are applied, especially those associated with consultation and participatory approaches to resettlement. However, Kuytun does not benefit from the principles and practices associated with effective resettlement and will be disadvantaged should subsequent urban improvement projects in this city result in land acquisition and resettlement.

The Mayor of Hami Explaining His Vision to Stakeholder Groups Supplementary Appendix M 85

It is therefore recommended that the Project through support provided to institutional development, specifically via the training courses developed during this Project design, incorporate a training module that focuses on better practices associated with resettlement. This training module needs to focus on the above issues but of equal importance it needs to focus on the following: (i) decapitalization of resettled people; (ii) methods for analyzing impoverishment risks during project design; (iii) understanding of the most common impoverishment risks; (iii) reducing risk through policy measures; (iv) risk-reduction measures; (v) incorporation of risk-reduction measures into RPs; and, (vi) monitoring risk reduction. The PMOs should also receive instruction in how to prepare resettlement plans and frameworks because while they were ―participant observers‖ (more ―observers‖ than ―participants‖) in the preparation of the 4 RPs prepared for this Project there are still significant gaps in their knowledge.

The other major Project-related social safeguard instrument is the EMDP. The preparation of the EMDPs have been taken less seriously by the PMOs because it is generally perceived that EMDPs are ―smoking mirrors‖ designed to satisfy the ADB and civil society groups in some ADB member countries concerned with the social and economic cost of development to ethnic minority groups. As a result the PMOs have generally been reactive rather than proactive to the preparation of the EMDPs. They have also been reluctant to agree to financially support activities within each of the EMDPs, even though the sums involved are very modest and for the most part the EMDPs have been designed in ways that leverage other aspects of Project design but are specifically tailored to ensure ethnic minority groups are not disadvantaged. There are several examples that can be illustrated here.

For instance, it has been observed during consultations with the PMOs and local ethnic minority groups that one of the major social issues the PMOs cannot really grasp are risks associated with social disarticulation. The PMOs for the most part do not understand culturally specific community structures and social organizations, assuming that if such structures and organizations exist they are of secondary importance to city created structures and organizations. Therefore, issues associated with the significant loss of social capital are not understood by local PMOs. However, it is not difficult to explain how social disarticulation can undermine livelihoods in ways not often recognized or measured by city planners.

Hami City’s Perception of Suitable Housing for Resettled People

86 Supplementary Appendix M

The loss of dwellings does have consequences for family cohesion and mutual assistance among ethnic minority groups in some of the Project cities, especially among the Uyghur. If neighboring household’s of the same kinship group are dispersed as a result of resettlement this can result in loss of identity and cultural impoverishment. Such impacts are qualitatively different to negative economic impacts but the PMOs have paid more attention to the economic impacts because they are much easier to quantify. Similarly the PMOs in some of the cities, Hami being the most obvious example, have designed resettlement sites that are generally not culturally appropriate. The PMO claim affected Uyghur support relocation to these new settlements but this is not what some of the APs stated during the FGDs. Hence the PMOs not only need to understand what are the real priorities of affected ethnic minority groups but work with these groups to generate acceptable outcomes resulting in a win-win for all stakeholders.

As with the training in better practices associated with resettlement the PMOs need to develop a more sophisticated approach to ethnic minority development issues than exists at present. It is unnecessary for PMO staff to be trained in the social sciences, although having a trained social scientist on the staff or available as a consultant would be useful. Rather the PMOs need to understand why EMDPs are prepared and based on the poor performance of the design institute contracted to prepare the EMDPs on behalf of the PMOs it would be preferable if the PMOs prepared these EMDPs in conjunction with ethnic minority stakeholders. By actually designing the EMDPs each of the PMOs are able to claim more genuine ownership over the EMDPs and reduce associated problems during project implementation.

To ensure that subsequently PMOs will be more proactive in the preparation of EMDPs training should also be provided in the preparation of (i) Indigenous People’s Development Plans (IPDP or EMDP); (ii) Indigenous People’s Development Framework (IPDF); and, (iii) Specific Actions designed to ensure that the specific needs of ethnic minority groups are incorporated into the project design. This is not a very complex undertaking and could be readily accommodated within the proposed training course on urban transport and environmental sanitation improvements developed for this Project.

9.2 Socially Inclusive Urban Development

Socially inclusive development has a number of subjective meanings, including compact and efficient land use, less motorized transport use yet better access, efficient resource use, less pollution and waste, restoration of natural systems, good housing and living environments, healthy social ecology, sustainable economic growth, community participation and involvement, and the preservation of local cultures and wisdom. It is unrealistic to expect the five Project cities to embrace all of these issues but alternative visions of how the city should be integrated with existing master plans. There is no need to discard whatever strengths there are in these existing plans but rather to build upon them. There are a number of techniques that would enable each of the cities to develop a more holistic approach to socially inclusive urban development, including Future Search Conferencing (FSC) and Appreciative Inquiry (AI). City personnel with a practical knowledge of how to apply these techniques probably do not exist in any of the five cities and it would be necessary to contract an external facilitator with both theoretical and practical knowledge.

However, the real key to socially inclusive urban development in the Project cities that this Project could make a difference to institutionally is in developing a strategy for poverty- focused urban transport and environmental sanitation improvements. There are at least four areas where a pro-poor strategy for poverty-focused urban transport is relevant:

Supplementary Appendix M 87

Recognition of the importance of walking and other NMT activities, and the special needs of the mobility-impaired should be recognized both in infrastructure design and traffic management; Removal of constraints or non-imposition of constraints on the informal transport sector because of their negative impact on poor people and thereby policies for the informal sector need to be framed with such impacts carefully taken into account; Absence of competition to public transport is likely to both increase costs and reduce supply to poor people. Preferences for a stable, disciplined supply should not be interpreted as a case for an uncontested monopoly; Efforts to secure multimodal integration need to be carefully managed to ensure that such efforts do not increase the number of times per day poor people must pay per trip, and the fares on which they are particularly dependent do not increase.

In relation to a pro-poor strategy for environmental improvementthere are several areas that are relevant:

Recognition that poorer communities are under-served in relation to the collection of solid waste because cities cannot dispose of all solid waste generated on a daily basis and therefore introduce a community-based approach for local communities to manage their own disposal of solid waste; Ensure that public facilities such as toilets and bath-houses are located in communities where there is a high incidence of non-ownership of either toilets or bath-houses; Employing people from poorer households to be engaged in activities associated with improved environmental sanitation, including street sweeping and rubbish collection and training in operation of motorized street cleaning vehicles and garbage compaction vehicles.

It is argued that if each of the five cities adopts a pro-poor approach it will also benefit women and ethnic minority groups, not because either women or ethnic minorities are disproportionately poor but by including the poor it becomes much easier to target all other stakeholders.

9.3 Leveraging Other Investments

Other related urban infrastructure improvements in all Project cities with the exception of Kuytun are being financed by JBIC. The existing PMOs are the IAs for the JBIC-financed Project that focuses on providing household-based water and sanitation improvements: piped water supply and flush toilets. Such a Project is because it is household-based lends itself more readily to assessing the positive economic and social impacts on a household basis than the Project currently being assessed in this SPA. It would be useful to liaise with the JBIC-financed Project to determine correlations between households that will be supported under its Project and communities in which they are located in and are to be directly impacted upon by upgraded or new roads. The most workable synergies are likely to be in Altay where the ADB-financed Project will also finance the construction of public toilets and bathrooms to ensure that local communities are adequately targeted by one or both Projects. However, there are also some synergies with the EMP being prepared for the ADB- financed Project and the JBIC Project in relation to environmental improvement awareness in all Project cities with the exception of Kuytun.

The extant problem with leveraging the JBIC Project is that JBIC does not require the same social safeguards as the ADB and there may well be some reluctance by the IAs to leverage that Project to add value to the ADB-financed Project. Yet the personnel from each of the IAs working on the JBIC Project are the same staff likely to be working on the ADB-financed

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Project. Therefore, from an institutional perspective the problems of achieving synergies between the two Projects despite the quite different cultures of JBIC and ADB are not insurmountable. This would enhance the absorptive capacity of city planners, especially in the field of environmental sanitation, in four of the five Project cities.

9.4 Empowerment of Local Communities

The C&P Plan stresses collaborative decision making and empowerment of local communities. However, local communities in a political system such as China’s cannot simply empower themselves as civil society groups and expect a positive response from the state. It is also necessary for local city government to facilitate the enabling environment for local communities to be empowered.

To facilitate this enabling environment it is necessary for local city government to (i) recognize social diversity within each city (including peri-urban areas); (ii) developing the capacity to be directly connected with local community groups (including informal groups); (iii) interact with representative groups of citizens on a regular basis with adequate degree of intensity of interaction (need to go beyond perfunctory public meetings); (iv) share information in an open and supportive environment (is quite different to extracting information from local communities); (v) is the need to establish trust and rapport with local communities (confidence-building measures); and, (vi) conform to ethical standards understood and shared by these local communities.

As argued elsewhere in this SPA the consultative processes associated with the Project design have acted as a catalyst for this enabling environment to be substantially expanded, both in terms of breadth and depth. But expansion is contingent on all stakeholder groups being able to offer contributions to improved city habitats. The FGDs have indicated that local communities want to improve their city habitat. They have also demonstrated to local city government that local communities have their own priorities, which are sometimes similar to those of city government but also importantly are sometimes not. Forging a consensus for social harmony is a laudable social development objective but it also needs to accommodate social diversity. The Project offers city planners the opportunity to embrace better practices to urban improvement that also include the empowerment of local communities.

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10. SOCIAL ACTION PLAN

A Social Action Plan (SAP) to ensure that the Project also contributes to the social development of the all people living in each of the five cities has been prepared. It has been developed by identify project-related social issues common to each of the five cities and social issues that are more relevant in specific cities. The following matrix identifies all of these social issues, summarizes the nature of the action plans, and who will be responsible for ensuring they are implemented. The SAP has also been developed in close consultation with all stakeholders, as per the series of FGDs facilitated, the EMDPs prepared for each of the five cities, and the RPs for four of the five cities.

Table 40 - Project-Related Social Issues NO SOCIAL ISSUES ACTION PLANS REMARKS COMMON ISSUES 1 Ethnic minority groups in 4 of The social safeguards associated with the ADB’s The major Project the 5 Project cities are to a policies on resettlement and ethnic minorities outputs relating to more significant extent than coupled with of national, regional and local policies ethnic minority groups other people negatively and procedures has been prepared to ensure that include the RPs and impacted upon by compulsory ethnic minority groups are not disadvantaged. EMDPs. These have land and physical structure Specific mitigation measures include: been prepared by acquisition resulting in a the Extensive consultations have been undertaken each of the relevant possibly diminished livelihoods, with ethnic minority people likely to be cities with assistance including the undermining of negatively affected by this Project. Especially from a local design traditional social networks. included in these consultations have been institute and the TA However, EMDPs are prepared women and other vulnerable groups including consultants. During for each of the 5 cities and are those living in poverty or who are physically or the actual Project not contingent upon numbers intellectually impaired. The emphasis is not implementation the residing in these cities but simply on reacting to these negative impacts but IAs in each of the rather because ethnic minority responding proactively by ensuring stakeholder relevant cities will be groups are generally more at ownership of the RPs. responsible for the risk from development than implementation of the other population groups. Where possible the design of specific RPs and both locally interventions (e.g. changes to proposed APs and external alignment or reconsideration of local city agencies will monitor priorities where impacts are thought to outweigh the implementation of all possible benefits) in each of the Project cities the RPs to ensure has been designed to minimize the impact of that all ethnic minority resettlement. Where this was not initially APs receive all the possible, such as in the case of the Hami benefits agreed upon mosque, the Project has devoted substantial in the RP. In relation additional resources to ensure alternative to the EMDPs the IAs options are culturally appropriate and clear will also implement all evidence of ownership of these alternatives aspects of the EMDP have been provided. but they will be The RPs for each of the 4 cities – Altay, assisted the Bureau Changji, Hami, and Turpan – have been for Ethnic Minorities designed to ensure that ethnic minority APs and Religious Affairs, have the same access to compensation the local Islamic entitlements, grievance mechanisms, and Associations, local opportunities for either income restoration or CRCs, and the All alternative livelihood opportunities. China Women’s Project enhancement measures including the Federation. employment of local labor (with a 30% quota for ethnic minority women in Altay and Turpan and 20% quota in the other three cities), promotion of participation in the design, implementation and monitoring of the Project’s outcomes by ethnic minority groups, strengthening of assistance for vulnerable groups, skills training (including in the Chinese language for ethnic minority groups with limited competency in Chinese), and utilization of local construction materials and transportation. 2 Vulnerable groups, especially Paid employment opportunities during both the civil The PMO and IAs in

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poor ethnic minority women, works construction period and on-going post-project each of the five but also other women and men employment opportunities should be provided as Project cities are living in poverty, find it difficult follows: responsible to ensure to obtain paid employment of a  People who are not receiving MLSS but whose that assurances in the regular nature that result in the disposable income would qualify them for loan agreement in ongoing perpetuation of their support under this scheme. relation to the hiring poverty status.  People who are currently receiving MLSS and of local labor are other members of their household to ensure acted upon via fully that per capita household income rises to at transparent practices least the equivalent of US$1 per day. and that contractors  Female labor desirous of entering the paid refusing to comply workforce but are constrained by existing levels with such practices of perception that they should only be either have contracts responsible for unpaid household management annulled or undertake activities. remedial measures to  Notwithstanding vulnerable people who should rectify the existing qualify for MLSS or are actually receiving situation. The ACWF MLSS priority needs to be accorded ethnic in each of the five minority women although these women should Project cities has be recruited from households where the per agreed to monitor the capita income is less than US$1 per day. recruitment of female  Basic on-the-job training is necessary for labor labor to ensure that from vulnerable groups and information and the agreed upon guidance on safety and health issues will be priorities are actually provided along with appropriate information on realized. the rights of paid workers. 3 Improved urban roads need to A range of design features have been incorporated The PMOs in each of be designed in order that all into the Project to ensure that these improved urban the 5 Project cities, pedestrian are able to use the roads will be of benefit to pedestrian users. These together with a range roads safely, especially women, measures include: of local community children and the physically The upgrading or construction of pedestrian groups, and the TA impaired. Existing pedestrian pathways with overhead street lighting, consultants are in pathways with potholes, piles of controlled crossings and traffic calming agreement that the refuse, broken pavement or measures to ensure safety for pedestrians and measures suggested piles of snow in the winter are security for vulnerable pedestrians, especially will meet the needs of physical hazards for all women during the hours of darkness. pedestrians in each of pedestrians but especially the the 5 Project cities. physically impaired. Piles of refuse will be stored in newly acquired During the Project garbage bins and disposed of when full or implementation IAs during warmer months on a daily basis. will ensure that the Removing this refuse from the streets reduces contractors adhere to one of the major physical hazards to the main design pedestrians. features. This will be Where possible the pedestrian walkways will be assisted by the fact designed in ways to render it easier for that many of the local physically impaired pedestrian users, such as workers are also those using wheelchairs, canes, walkers and pedestrians and will crutches, to improve their mobility. be provided with the To ensure that newly constructed or renovated necessary training to pedestrian walkways are free of potholes or ensure they pay broken pavements, a pedestrian walkway attention to specific maintenance plan that includes the employment design issues. of local community members will be established as part of the on-going post-Project activities.

4 With improvements to local city Measures to ensure that road improvements are CB in each of the five roads there are likely to be accompanied with improvements in road safety the cities are responsible greater road safety issues following measures will be implemented: for developing plans because motorized vehicles will Traffic management plans will be developed in a consistent with the increase in volume and are systemic manner to ensure that a more rational better practices that likely to be driven at higher approach to competing road users is able to be would normally be speeds. This is likely to have a implemented. associated with traffic disproportionate impact on the management plans. poor because they are less Schools will be at the forefront of plans by the The PSB will work likely to use motorized Traffic Section of the Public Security Bureau to with local schools and Supplementary Appendix M 91

transport, except public develop a greater degree of road safety the MMB to ensure transport, than the non-poor. awareness among local city residents. This will that all road users are be associated with plans via the mass media to targeted. The PSB target older road users and where necessary will be the sole awareness programs will be conducted in the agency responsible languages of ethnic minority groups. for enforcing traffic There will be stricter enforcement of existing regulations. EMDPs traffic rules and it has been agreed that a zero- will incorporate some tolerance approach will be adopted with specific provisions to persistent offenders, including those in charge be targeted at ethnic of motorized vehicles while under the influence minority groups. of alcohol. 5 STDs/HIV/AIDS in some of the Measures to mitigate the negative impacts of Contractors will be Project cities are amongst the STDs/HIV/AIDS in each of the Project cities include responsible for this highest in China with clear the following: program under the linkages between injectable Contractors will be required to undertake direction of the IA and drug users and unsafe sexual awareness programs among their workforce guidance from the practices. While the Project is including cultural sensitization of this workforce Health Bureaus of seeking to employ as much to local behavioral norms. each of the 5 cities. local labor as possible there will still be a significant number of Contractors will also be required to ensure that skilled and semi-skilled male adequate supplies of condoms are available for workers from elsewhere in the the workforce and voluntary HIV testing is region and China. available free-of-charge to this workforce. 6 Lack of clarity in policies related Via policy dialogue with the providers of urban This policy dialogue is to a range of demand-based transport services the Project has been designed to to be conducted with issues associated with NMT address the following issues: both the EA and IAs and other urban transport In line with national policies encouraging local for the Project and issues is evident to some providers to be more sensitive to social and will include Project extent in each of the five cities. poverty issues, especially those associated with financed support for This limits the ability of the gender and ethnic minorities. the development of cities to promote a more institutional capacity habitable environment for its Facilitate the enabling environment to ensure to understand the residents. that local communities are empowered to social dimensions of articulate their demands for urban transport urban transport. The services, including appropriate infrastructure, Project’s Participation which satisfies their specific demands. Strategy is a key component of this approach. 7 There is a lack of public A range of measures have been designed to ensure Responsibility for the awareness in relation to how improvements in environmental health in each of the procurement of the environmental health issues 5 cities associated with better practices in the Project hardware will associated with the poor management of solid waste. These include: rest with the IA and is management of solid waste The provision of rubbish tins along major city included in the impact upon the health of streets, garbage disposal bins in local specific Procurement people living in the 5 Project communities, rubbish compaction trucks, and Plan of the Project. cities. street cleaning machines. The EMP addresses budget and content Environmental protection related to awareness issues in the public and mitigation measures associated with the awareness program. management of solid waste in public venues, The EP Bureau will including schools, television, radio, newspapers, coordinate all aspects posters, and workplaces. of the program but it The promotion of safe recycling of solid waste will be assisted by materials, especially paper, glass, and electronic local schools under materials, by offering incentives for people to the guidance of local use appropriate recycling receptacles. Education Bureaus in relation to the school programs and the News and Media Bureau in relation to other aspects of this awareness program. In relation to safe recycling of solid waste the Municipal

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Bureau will assume responsibility for the overall management of this activity. CITY SPECIFIC ISSUES ALTAY 1 The City of Altay has argued it This approach is illustrated in the following design The IA is responsible is necessary to adopt a features of the Project in Altay City: for the implementing demand-driven approach to The poorest community in the city, which this Project but has urban improvements that is consists largely of ethnic minority groups agreed to work with also pro-poor in nature because (Kazak, Uygur and Hui), was able to convince the local community such an approach has both the Mayor that the upgrading of roads leading to ensure all aspects economic and social benefits. into and out of their community should be of the design result in accorded highest priority for upgrading. a real improvement in connectivity for this Different ethnic minority groups have agreed to community with the work together provide for the operation and rest of the city. Where maintenance of public toilets/bath-houses people are negatively because they cannot afford to finance such affected through the facilities on an individual household basis and whole or partial loss during the processes associated with arriving at of physical structures consensus on this investment community the provisions of the members suggested culturally appropriate Altay RP will apply. design features such as partitioned bathrooms. Because it is largely ethnic minority groups that are affected the Altay EMDP provides provision for all three groups to actively participate in the implementation of the Project. 2 To take advantage of mining To overcome the problems associated with this The IA in Altay needs opportunities in close proximity newly proposed alignment it has been suggested to be responsible for to Altay City a decision has that the city undertake the following measures: assessment of a been made to make it easier for Consider looking at alternative alignments to range of alternative heavy trucks to pass through minimize the impact of resettlement, noise alignments guided by Altay on their way to Urumqi impacts, and higher pollution levels that would the opinions of APs but the problem is that a accompany the proposed alignment. and the consultants significant number of houses responsible for the need to be demolished and the Consult with staff and students of the affected technical design of noise levels near a local technical college, especially students staying in the current alignment. technical college are likely to be dormitories contiguous with the proposed In consultation with higher than should normally be alignment, to determine what noise abatement the EP Bureau the IA considered acceptable. measures are realistic. needs to quantify the Undertake a more robust cost-benefit analysis possible impacts of of the proposed alignment’s impacts that would noise pollution and include not simply a financial assessment but an emission levels. A economic and social analysis as to the overall more robust cost- viability of this proposed alignment. benefit analysis must be undertaken prior to the finalization of this Project. CHANGJI 1 Because of the close proximity The Changji Traffic Department of the PSB will The PSB will assume of Changji City to Urumqi City be actively involved with schools, local responsibility for this there is substantially more communities, and the workplaces to ensure that program in a close motorized traffic on the roads road safety issues are fully understood by all partnership with the than in the other 4 cities. Road road users ranging from the very youngest to the EB, local schools, usage by motorized transport is very oldest. There will also be an emphasis on CRC, and MMB. In set to increase more rapidly making the roads safer for physically impaired relation to the policy than in the other 4 cities but road users. dialogue the EA and with multi-modal forms of IA will work together transport including over 60% of As part of the Project’s policy dialogue in relation to develop a policy on the current population that are to making cities more user-friendly to users of NMT for Changji. the users of NMT road safety NMT the EA in Urumqi will work more closely issues are even more with the IA in Changji to develop a range of Supplementary Appendix M 93

important in Changji than the specific policies relevant to the future growth of other Project cities. Changji. HAMI 1 It was considered necessary to  After a series of detailed consultations with all IA in association with demolish and rebuild a 122 stakeholders who attend or have some Imam and the local year old mosque because it is association with this mosque, including the Islamic Association technically impossible to select Imam, Mayor of Hami City, and Party Secretary, have agreed to work an alternative alignment to it has agreed that a new mosque will not be built within the auspices of connect northern and southern as part of this Project . the RP and EMDP to Hami city.  Design issues for the new mosque need to be ensure that wishes of agreed upon by the local Uyghur community not people who support imposed upon this community by a local design the existing mosque institute impervious to the unique architectural are taken into full design of traditional mosques in Hami City. consideration. 2 Uyghur households are most  Hami City has already made available sites for IA to work with AP likely to lose all or part of their resettlement but the location and style of house and reach consensus houses and shops than the is not one preferred by Uyghur. It has been on culturally more Han in Hami because of the suggested that displaced Uyghur should be able appropriate design of physical location of the urban to choose the design of such houses that they housing. road improvements. consider appropriate. 3 Hami City authorities are  As a result of the detailed consultations required Hami City will in the bewildered by the social in relation to the mosque the Mayor of Hami first instance pilot this safeguard policies of the ADB City is seeking to have all bureaus involved with approach with the IA but would like to seek more social sector projects in the city to better because the IA is financing from multilateral understand not just ADB social safeguard required within the financial institutions because it policies but also new national government auspices of the RP can leverage such financing to requirements on the necessity to undertake and EMDP to ensure secure national and regional social assessments as part of project due diligence is support for social sector identification, design, implementation, and exercised in relation projects. monitoring. to social safeguard policies. KUYTUN 1 Up to 40% of the population of  An awareness program targeted specifically at IA will work with the this city is classified as the the ―floating population‖ will be launched to Civic Affairs Bureau ―floating population‖, and while ensure that in areas of the city where this and Health Bureau to viewed positively because it population is domiciled all rubbish is collected ensure that this group increases the demand for local and the streets are cleaned on a more regular understands it is also goods and services, there are basis. required to keep the problems with hygiene which is city clean and it is generated specifically by this also agreed that there group in Kuytun. will be adequate rubbish tins, garbage disposal bins, and the collection of solid waste on a more regular basis as part of the Project. 2 The city government is  The Construction Bureau has agreed that this IA will look at making focusing most of its attention Project primarily focuses on improving inter-city changes to existing on roads that improve the city’s connectivity and opening up of areas in the city Master Plan to ensure connectivity with the oil towns for new urban development based on the city’s locally unpaved roads to the north of the city but has Master Plan. However, it has agreed that the are paved according paid little attention to improving Master Plan should be modified to take into to local community roads within the city so that account improved connectivity between local priorities during the local communities can also communities and financing for this will be implementation of this benefit. sought from local budgetary sources. Project. TURPAN 1 Upgrading and construction of  The Construction Bureau has been asked to Prior to finalization of new roads has some impact on reconsider plans to upgrade and construct the roads for Turpan agricultural land used for roads on the outskirts of the city that will result the CB will consider viticulture in Turpan. As this in the loss of land used for viticulture. A request alternative options. At industry is an important source has been made to assess the technical and present the RP for of income for the city and financial viability of alternative alignments Turpan includes the results in significant levels of although if houses are to be demolished as a roads that will impact seasonal employment during result then the existing alignments should be upon viticulture land. the grape harvest for poorer retained. The EMDP will also

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people the acquisition of such need to address this land for the Project needs to be issue because the carefully considered. land belongs to Uyghur landholders. 2 Tourism is a highly significant  The Construction Bureau has been asked to Prior to finalization of source of income for Turpan reassess the alignments it has selected to date the roads for Turpan and people visit Turpan that will result in the demolition of traditional the CB will consider because of its unique historical Uyghur houses and grape drying structures. alternative options. At characteristics and do not want  If there are no alternative alignments possible present the RP for to see a facsimile of cities in every attempt should be made to assist affected Turpan does not Eastern China. Hence any households reconstruct traditional Uyghur address the option for attempt to transform existing households should the Uyghur choose such reconstructing Uyghur urban landscapes in Turpan houses. houses at sites to be generally has a negative used for resettlement. impact on the aesthetic Because the APs are integrity of the city. Demolition mainly Uyghur the of traditional Uyghur houses EMDP will also need and grape drying structures to to address this issue. widen or construct new roads is not necessarily in the best interest of Turpan. 3 The incidence of HIV/AIDS is  The Construction Bureau as the IA will ensure For the civil works the significantly higher in Turpan that contractors provide the necessary IA will ensure that the than the other 4 Project cities. awareness programs and condoms for workers contractors are able This is partly because Turpan they employ but cannot take responsibility for to provide a suitable has more visitors for tourism the general awareness and prevention HIV/AIDS program purposes, which creates a programs to cover all at-risk groups in the city. targeted at their work demand for a range of sexual  The Project is unable to financially support the force. This action is services by out-of-town clients general awareness and prevention programs in included in the RP for that does not exist in the other the city although it can support via the mass Turpan and also the cities. However, it also appears media and the erection of multi-lingual EMDP. Support for that there is also a higher billboards (Uyghur, Chinese, Japanese, erection of billboards degree of injectable drug users Russian and English) carrying HIV/AIDS will be sought from who engage in at-risk sexual prevention messages. the Mass Media behaviors. Bureau and Tourism Bureau. This action is to be included in the EMDP. 4 Turpan is heavily dependent on  This is a unique opportunity to initiate some This approach needs water from its unique irrigation form of ―stream-watch‖ whereby teachers and to be integrated with system but within the city itself their students assume responsibility for a the EMP and the EPB many of the small secondary portion of the secondary canals and use this will need to work with canals from which poorer stewardship as the focus for an integrated the EB and the local households extract water for learning approach to issues relevant to schools to ensure that domestic purposes are polluted environmental studies. the program is really because of the amount of solid effective. waste that finds its way into these canals. 5 In Turpan there are groups of  The Project via grant financing would be able to The ACWF should be Uyghur women who would like work with small groups of Uyghur women to responsible for the to establish linkages with the provide the necessary skills training, small management of this burgeoning tourism industry via grants for start-up capital, and opportunity to grant because it has the provision of local goods leverage existing sources of finance locally experience in this and services but lack the available. field and in Turpan a resources that would provide substantial number of the catalyst for this type of Uyghur women are business to develop. current members of the ACWF. Supplementary Appendix M 95

11. CONCLUSION

The poverty situation in each of the five Project cities has been reviewed and analyzed and it has been concluded that if the equivalent of the international benchmark of US$2 per capita, per day is utilized there are significant levels of poverty ranging from 12.6% in Changji to 40.0% in Altay. Among ethnic minority households the incidence of poverty ranges from 19.6% in Kuytun to 50.0% in Altay and among single adult households 25.0% in Hami to 56.7% in Altay. However, if the equivalent of less than US$0.50 per pay per capita is utilized the incidence of poverty is much lower ranging from 1.2% in Turpan to 5.0% in Altay, among ethnic minority groups’ from 0.7% in Changji to 8.5% in Altay, and among single adult households from1.9%in Turpan to 5.5% in Altay. If the SPA was simply based on per capita poverty levels of less than US$0.50 per day it is very doubtful that this Project would have any real impact on poverty at all. Therefore the SPA has relied on the higher and more realistic US$2 per capita, per day, which after all is not a very high minimum to assess whether the Project can have any meaningful impact on poverty in the five Project cities.

The positive impacts of the Project in the short-term revolve around a number of impacts. These include: (i) local employment generation with priority being accorded currently unemployed or underemployed poor and vulnerable groups (all five cities); (ii) rendering local city roads more pedestrian-friendly for all groups but especially women, children, the elderly and poor who rely almost exclusively on NMT (all five cities); (iii) design of city roads to benefit improvements in public transport; (iv) increased road lighting to improve road safety and personal security of NMT users (all five cities); (v) reduction in injuries, disease and infections through improved solid waste management (Altay, Changji, Kuytun and Turpan); (vi) improvements in public hygiene through the provision of public toilets (all five cities but limited in scope in both Changji and Hami) and public bathrooms (Altay); (vii) public awareness programs in the field of road safety and environmental improvement (all five cities); and, (viii) facilitation of greater levels of stakeholder participation in city planning decisions via a more demand and pro-poor and pro-gender approach to the provision of public infrastructure.

A Relatively Unsafe Road Leading to New Development Area in Turpan

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Longer-term impacts revolve around whether the above positive impacts are also articulated with the extension of roads into new development areas of each of these five cities to support increased industrial activity, raise the level of the local economy, increase employment, and reduce the incidence of poverty. It is these longer-term impacts that are the most meaningful in terms of reducing poverty in each of the five cities and of course some cities, notably Changji, which already has the lowest incidence of poverty, will be able to leverage this Project to a greater extent than the other four cities. Nevertheless, the Project will result in social and environmental benefits to much of the population of each of the five cities that improves their overall livelihoods in ways that would not have occurred without the Project. With greater urban-rural linkages and the movement of people from the countryside into the cities it is necessary to improve the physical and social quality of life. It is also necessary to recognize that living in or near cities is qualitatively different to living in the countryside and the Project represents a positive attempt to address this important issue. Without assistance from the Project the processes associated with making cities more habitable is likely to be less rapid.

The positive impacts for women, including and especially ethnic minority women, are similar in many respects to those of men but with (i) increased employment opportunities both during Project implementation and post-Project; (ii) improved road safety leading to a lower accident rate; (iii) easier access to public facilities, especially schools, healthcare centers, and local markets; (iv) reduction in disease, injury and infection associated with improved solid waste management; and, (v) greater levels of gender empowerment through increased levels of participation in city-planning affairs are gendered in ways that reduce the workload on women. Being the principal caregivers in the household, irrespective of income or ethnicity, women’s workloads will be reduced enabling them to spend more time pursuing leisure-based activities, social networking, or of equal importance, engaging in their own income-generation activities.

The positive impacts for ethnic minority groups are also similar as those for all men and women, except in some instances there are specific impacts that ethnic minority groups will enjoy that are city specific. In Altay the public bathrooms will be designed in ways that take into account the cultural sensitivities of ethnic minority groups who are also Muslim. In Changji greater attention is being paid to road safety targeted at ethnic minority groups because of the projected increase in motorized traffic volumes. In Hami where there have been problems reconciling the needs of the city with the needs of ethnic minority groups the Project will pay more attention to safeguarding the interests of ethnic minority groups. In Kuytun the Project will illustrate the benefits to ethnic minority groups of residing in close proximity to the highest growth triangle in XUAR. And in Turpan ethnic minority groups will benefit from the gains to a cleaner and greener city that the Project will facilitate.

The negative impacts of the Project are primarily associated with the resettlement or people required to forfeit their houses, shops and land for the Project. Where possible the Project has tried to minimize the impact of resettlement but it could not eliminate it everywhere with the exception of Kuytun where the benefits of the Project can accrue without resettlement. As has been described in this SPA the Project was able to demonstrate to the city authorities in Hami that a culturally and religiously significant local mosque should not be demolished and in Turpan it was possible to demonstrate to city authorities why demolishing traditional Uyghur houses was inconsistent with the cultural landscape of that city. The RPs for each of the four cities have been developed following a series of participatory consultations with households directly affected and the PMOs who will assume the role of IAs during Project implementation. Supplementary Appendix M 97

The Hami Mosque Which Occupied Much Time During The TA

In relation to ethnic minority groups the major negative impact would be that as a result of resettlement their important social networks would be undermined and this has been stressed in four of the five EMDPs (the Kuytun EMDP does not address Project-specific resettlement issues because of lack of resettlement). Where possible the Project has endeavored to ensure this will not occur and during actual design the importance of this issue was stressed repeatedly not just by the TA Consultants but more importantly by ethnic minority groups, especially Uyghur women but also to a lesser extent by other ethnic minority groups. The Project has also sought to alert city authorities to inappropriate resettlement sites for ethnic minority groups and has suggested ways in which they can be redesigned to ensure they meet the approval of ethnic minority groups involuntarily resettled. By facilitating an enabling environment for ethnic minority groups to make voice their opinions on the resettlement processes and suggest how they could be improved upon the Project provided a more focused environment for ethnic minority groups than would otherwise exist.

To ensure that all stakeholder groups can benefit from the Project a SAP has been developed addressing social issues common to all five cities, how they will be addressed, and by whom. Additionally, social issues specific to each of the five cities have been identified, how they will be addressed, and by whom. This SAP has been developed in conjunction with the stakeholder groups from whom a broad consensus was sought primarily though the series of FGDs that were facilitated in each of the five cities. A C&P has also been prepared to maximize the participation of all stakeholder groups in the Project but especially women, ethnic minority groups, and poor and vulnerable groups. This has important implication not only for project design and implementation but also monitoring and evaluation. The monitoring and evaluation indicators for this Project have been designed in conjunction with local stakeholders and they are both process and output driven.

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Regular Bus Service in New Residential Area of Hami

It has been strongly suggested that apart from the technical linkages with the Project a thematic approach for each of the five cities be developed to demonstrate qualitative developmental components of the Project. This enables each of the cities to also develop their capabilities in specific fields of social development and also to learn from the other cities involved in the Project. Hence it is anticipated that there will be a high degree of collaboration between and among each of the five cities, which will also bring each of these cities closer together and this represents an attempt to achieve synergies that would not otherwise exist.

In Altay the city authorities have demonstrated during the design of this Project how to incorporate the demands of local communities, including women, ethnic minorities, and the poor and vulnerable within the framework of the Project. By adopting a process driven approach to assessing the real demands of local communities that could be realistically financed under this Project Altay built upon the provision of public toilets to also include public bathrooms. The city authorities realized many households living in or near poverty could not afford bathrooms, and as result were forced to compromise on personal hygiene during the long winter months for all household members and at other times of the year for women and girls. The city authorities also realized that a portion of the investment in local roads must be to connect local communities not only with the center of the city but with other local communities in the city. It was clearly demonstrated to the Project that Altay had won acceptance for its local Project design from all stakeholder groups in the city.

Changji is economically the most developed of the five Project cities and motorized vehicular traffic is going to increase at a faster rate than in the other four Project cities. This represents an opportunity to focus on road safety issues because most of the road accident victims in Changji are the city’s rural population followed by other pedestrians, cyclists, school students, and the elderly. Changji is seeking to prohibit NMT users from peri-urban and rural areas from using the major city roads and is using the argument that Changji needs to develop a Supplementary Appendix M 99 modern transport network that cannot coexist with these traditional users. However, there are livelihood issues at stake here for traditional NMT users, especially during harvest times, and Changji will need to develop a strategy to address this issue. With the modern road network envisaged by Changji and its close proximity to Urumqi this represents an opportunity for Changji to develop a more innovative road safety approach than exists in other cities, including Urumqi.

In Hami there were a number of problematic issues associated with resettlement during Project design that were eventually resolved. However, the experience of the city authorities with resettlement issues impacting upon ethnic minority groups has provided it with a valuable learning experience that it could build upon. In the near future China is demanding of its cities that it undertake social assessments as part of the project identification and design process. While Hami still has some way to go before it can claim it has a good understanding of these twin processes its experience on this Project can be built upon and it can demonstrate to other cities better practices associated with a more sensitive approach to social issues, especially those that impact upon ethnic minority groups. Hence what initially appeared as a wholly negative experience for Hami can be converted into a series of positive experiences that will enhance the planning effectiveness of the city.

Kuytun is an interesting example because it is the youngest of the five cities but it is in close proximity to the ―golden triangle‖ that includes one of the fastest growing cities in China, the oil town of Karamay. With its large ―floating population‖ Kuytun is a metaphor for the post- 1949 development of XUAR. People are attracted to Kuytun because of its close proximity to the resource wealth of XUAR where they hope to be able to make their fortune or at least attenuate their poverty by providing a wide range of goods and services. Kuytun welcomes the ―floating population‖ with more-or-less open arms because it recognizes they stimulate not retard economic development even though there are some negative social issues associated with this population. However, the Project in Kuytun represents an opportunity to assess to what extent the Project can contribute to Kuytun’s overall development through its linkages with the rapidly developing value-adding resource economy. An analysis of the SES data shows that Kuytun is the second least poor city of the Project cities with the exception of single adult households but the net value of household assets results in it being the fourth poorest city in terms of these assets. The propositional argument here is that the Project should test whether the Project enables Kuytun to achieve the synergies it claims with more prosperous cities in close proximity by being a provider of a range of goods and services.

Turpan is the second most important city for tourism in XUAR and the Project represents an opportunity not only to increase the number of tourists traveling to Turpan or a net increase in the daily per capita expenditure of these tourists but of equal importance to enable smaller groups, especially ethnic minority women, to capture a greater share of the existing and project revenue from tourism. As argued above the Project was able to persuade city authorities in Turpan of the necessity to maintain the cultural landscapes of the city but this also needs to be matched by ensuring local women are able to benefit from tourism. During the participatory consultations it was quite clear that local women understood the importance of a clean and green Turpan but they also clearly argued that they had a range of goods and services to be offered to tourists. Hence they are seeking support to realize this opportunity currently denied to them because of lack of leverage with the market. To raise the level of the local economy, increase employment, and reduce the incidence of poverty the Project should not just focus on opening up new developmental areas in each of the five cities but also build upon existing assets.

Finally, there are a number of points related to the overall Project that can be made of relevance to social and poverty related issues. By improving the existing road infrastructure there should be a reduction in accidents but there are a number of livelihood issues associated with not clearly thinking through the economic and social importance of NMT in

100 Supplementary Appendix M some of the cities. It is unclear as to how assisting commercial access to transshipment trade will improve urban living conditions. This is quite a vague argument unless it the links between transshipment trade and improved living conditions can be demonstrated unless the focus is on Changji and Kuytun only. However, the Project does facilitate improvement and enhancement of urban utility services and environmental protection, especially where it links physical interventions with social considerations associated with awareness programs. On balance with all the qualifications it is argued that the Project makes a positive contribution to social development and the improvement of urban habitats in each of the five cities.

Supplementary Appendix M 101

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MacKerras, Colin. 2004. ―Ethnicity in China: The Case of Xinjiang‖. In, Harvard Asia Quarterly (VIII: 1), pp. 1-15.

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Millward, James A., 2007. Eurasian Crossroads: A History of Xinjiang. New York: Columbia University Press.

Maunder, D.A.C., T.C. Mbara, R. Kibombo, A.S.C. Davis, and J.D.G.F. Howe. 2001. Sustainable Livelihoods, Mobility and Access Needs in Urban and Peri-Urban Areas. Unpublished paper. United Kingdom: TRL Limited.

Mukherjee, Mahua. 2002. From Dawn to Dusk: Transportation of Rural Women to and from the Metropolis. In Balancing the Load: Women, Gender and Transport, edited by Priyanthi Fernando and Gina Porter. London: Zed Books.

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Supplementary Appendix M 103

Appendix I Summary Social and Poverty Impact Matrix of the Project COMPONENT 1 – ALTAY Sub-Component 1 – Roads Nature of Activity Benefit of the Project Lack of Benefit Without the Project Improving existing traffic conditions Better road junction control and As traffic increases in volume, road and resolving problems associated more systematic enforcement of junctions are not more effectively with traffic congestion traffic rules will make it easier for controlled, and traffic rules are not pedestrians to share junction use strictly enforced pedestrians will be with vehicle users. less safe on the roads. Managing the seasonal flow of Non-management of the seasonal floodwaters by widening the existing flow of floodwaters will perpetuate channel or realignment of the the existing problem. existing road is a positive road safety improvement. More effective traffic planning to Clear definition of main and minor Too many frontage access points improve upon the existing Master roads enable the city to more along the main roads result in Layout Plan effectively manage road traffic for ongoing problems in relation to drivers and pedestrians. improving road safety and traffic control issues. Land use transport planning and Improved traffic forecasting using Lack of effective transport planning basic traffic engineering techniques techniques associated with land use will cost the city more in the long- to more effectively manage transport planning rather than on term and investment capital that transport in Altay the basis of GDP makes it easier to could be spent on other urban plan urban transport improvements development initiatives will need to for all road users. be foregone. Making local city roads more Junction configurations aim to Both pedestrians and drivers will pedestrian friendly at junctions. provide shortest pedestrian crossing continue unsafe road use practices facilities and proper channelizing of thereby compromising road safety traffic to improve both pedestrian and ultimately incurring quantifiable and driver safety. costs to individuals and their households and to the city. Alternative comparisons and least Least cost options can be pro-poor Opting for the more expensive cost analysis of different road if savings on investment can be options based on the complexity of design options. used for other Project-related road design does not necessarily purposes that would benefit poor benefit poor and vulnerable groups. and vulnerable groups. Road safety design features to Design works focused on road When accidents occur the cost is reduce accidents in terms of alignments, sightline and visibilities high for individuals, their household, fatalities and other injuries. at junctions and curved road and the community at large. sections improve road safety resulting in a reduction of road accidents. Improvements in existing traffic Locating bus stops and associated Road accidents are likely to management measures to ensure pedestrian crossings near schools continue in close proximity to efficient traffic circulation. to improve safety for students, their schools because younger school- teachers, and parents. age students are among the most vulnerable of road-users. Design of city roads to benefit Roads will be designed to ensure Without access to affordable public improvements to public transport. that public transport users have transport poorer road users are easy and safe access to mini-buses forced to rely on more expensive and mini-cabs operating in the city. forms of paid transport or move about on foot. Increased road lighting to improve Illuminating roads to ensure all road Road users will continue to be road safety and personal security of users are more visible to other road exposed to road safety and NMT users. users is both a sound road safety personal security risks without measure and personal security adequate road lighting. measure, especially for women and other vulnerable groups. Road pavement design that takes Better road pavement design Road users forced to drive or ride into consideration adverse weather means that both motorized and erratically due to poor pavement conditions. NMT road users are less likely to design not only incur higher drive or ride erratically on roads that operating costs but also pose more are devoid of potholes or other of a danger to other road users design imperfections. It also means including pedestrian traffic.

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that lower road maintenance costs are incurred enabling the city to provide other recurrent expenditure. Capacity building for modern road Such forms of capacity building Lack of these forms of capacity in management, road maintenance, have multiplier effects that impact the city results in the city not being road safety and rule enforcement. positively on all people living within able to effectively leverage urban the city and other road users transport improvements to benefit transiting or visiting the city. the city. Sub-Component 2 – Environmental Improvements Construction of public toilets, Public toilets meet an unmet Poor hygiene will continue to persist garbage collection stations and the demand in the city and in poorer and this impacts to a greater extent provision of transportation facilities, areas of the city when coupled with on the poorer and more vulnerable placement of rubbish tins, and public bathrooms are explicitly pro- households that are unable to afford provision of vehicles used for street poor in nature. They also result in private toilets and bathrooms. The cleaning.. both household and public hygiene non-management of solid waste is a improvements. The more effective vector for related illnesses that are management of solid waste readily preventable thereby adding improves the aesthetic appearance to costs associated with treating the of local roads, public hygiene, and poor. Garbage-strewn pedestrian where pedestrian walkways are walkways contribute to pedestrians kept free of garbage also the safety using the road rather than walkways of pedestrians. Street cleaning and this contributes to an increased machines improve the aesthetic accident risk. Lack of street appearance of city streets but also cleaning in the absence of improved contribute to public hygiene. personal hygiene practices, such as non-spitting, does little to improve public hygiene. COMPONENT 2 – CHANGJI Sub-Component 1 – Roads Improving existing traffic conditions Existing design of roads in this city Unless road junctions are designed and resolving problems associated are not congested at this point in to take into account road safety with traffic congestion time but with the city’s planned considerations with increased levels growth there is likely to be a of vehicular traffic there is likely to significant increase in both local be an increase in traffic accidents. traffic and traffic passing through Changji. These roads have not been designed to accommodate road safety concerns. More effective traffic planning to A land use transport planning The projected traffic forecasts were improve upon the existing Master process has been completed based not reflected in the FSR for Changji Layout Plan on the assumption that the longer- indicating no reference to the land term population projections would use transport planning process. see the city’s population reaching This implies that the FSR has 1,000,000. effectively ignored more effective traffic planning, which would benefit the population of Changji. Land use transport planning and If the traffic forecasts were to be Similar impacts to those described basic traffic engineering techniques incorporated into the design of immediately above apply here as to more effectively manage urban road improvements in well. transport in Changji. Changji this would have beneficial impact on all people living in the city because rational land use transport planning also takes into account NMT uses of existing and planned roads. Making local city roads more The major focus here is similar to Not making local city roads more pedestrian friendly at junctions. that of Altay: improving pedestrian pedestrian friendly at the wide crossings at junctions by providing junctions in Changji cause quite the shortest pedestrian crossing serious road safety problems for facilities. With the generally very pedestrian. wide roads in this city this is an important road safety intervention, which will be associated with the proper channelizing of traffic. Alternative comparisons and least The main consideration here is on Arguments similar to those used to cost analysis of different road the type of pavement to be used in Altay apply: more expensive Supplementary Appendix M 105 design options. Changji. The Project is seeking to investments do not necessarily ensure that the investment is value benefit poor and vulnerable groups. for money. This ensures the scope exists for finance to be made available for other investments. Road safety design features to Road safety is a real concern in this Without these road safety design reduce accidents in terms of city. With the proper channelizing of features being incorporated into the fatalities and other injuries. traffic and proper provision for Project it will be very difficult to pedestrian crossing facilities it will mitigate existing and potential traffic be technically possible to address accidents involving pedestrians and road safety concerns. vehicle drivers and vehicle drivers with other vehicle drivers. Improvements in existing traffic The Interim Report does not management measures to ensure specifically address this sub- efficient traffic circulation. component unlike for Altay. Design of city roads to benefit The proposed road improvements If bus bays and crossings are not improvements to public transport. will allow for the inclusion of proper included in the Project this omission bus bays and crossings in the contributes to ongoing road safety vicinity of schools, hospitals, risks for users of public transport shopping centers, and cultural and and also for other road users. recreational venues. This reinforces Younger children, elderly people, road safety measures for public and the physically impaired are transport users. most at risk if the design ignores such considerations. Increased road lighting to improve Similar arguments as those that Without adequate road lighting road safety and personal security of apply to Altay also apply in Changji pedestrians, especially women are NMT users. but given greater traffic volumes exposed to unnecessary personal including NMT and the social security risks at night-time and this composition of the city’s population restricts their mobility. personal security is also enhanced as a result of increased road lighting. Road pavement design that takes The same principles that apply to The same without project impacts in into consideration adverse weather Altay also apply in Changji. Altay also apply to Changji. conditions. Capacity building for modern road Even though Changji has the most Without the development of this management, road maintenance, capacity of the five cities it still local capacity Changji will not be road safety and rule enforcement. needs to develop its capacity in able to achieve its planning terms of land use transport objectives in terms of urban planning, traffic engineering design, transport improvements, which will road maintenance, and road safety have a negative impact on all of the to maximize the benefits of the city’s population but especially the Project. poor who rely on multi-modal forms of transportation. Sub-Component 2 – Environmental Improvement Construction of public toilets, This section has to be reviewed garbage collection stations and the because the negative comments in provision of transportation facilities, the Interim Report about the placement of rubbish tins, provision proposed interventions in Changji. of street-cleaning vehicles and snow-clearing vehicles. COMPONENT 3 – HAMI Sub-Component 1 – Roads Improving existing traffic conditions Better junction control and proper As with Altay and Changji in the and resolving problems associated provisions for pedestrians will have absence of better junction control with traffic congestion the same impact as in Altay and and proper provisions for Changji but the major problem here pedestrians it is not possible to is the city wants to upgrade an east- improve road safety in Hami. If the west connecting road requiring the mosque is not demolished traffic demolition of a local mosque. The conditions on the existing road are city has not been prepared to not likely to improve but this will not consider alternative alignments. necessarily result in traffic congestion. More effective traffic planning to There is provision for making the The non-installation of traffic signals improve upon the existing Master junctions safer for both cyclists and and give-way sign-posted junctions Layout Plan pedestrians through the installation makes roads in Hami less safe to

106 Supplementary Appendix M

of traffic signals and give-way sign- use by pedestrians and cyclists. posted junctions. The detailed MLP will include provisions that focus on rendering pedestrians and cyclists more highly visible on city roads. Land use transport planning and Traffic forecasts are based on Because of the sensitive issues basic traffic engineering techniques growth factors related to GDP but associated with mosque demolition to more effectively manage on the road where the mosque will it is necessary to use more reliable transport in Altay be demolished traffic forecasting methods of traffic forecasting than based on land use transport data have been used. Land use transport would be a more effective method data analysis would enable Hami to for assessing the need for this road assess whether roads such as the to be upgraded and widened. one the mosque is located on actually justify the proposed investment. Making local city roads more As with Altay and Changji the Without these pedestrian crossing pedestrian friendly at junctions. provision of the shortest possible facilities in Hami the local city roads pedestrian crossing facilities will are not pedestrian friendly and this make it much easier for pedestrians impacts on all pedestrians but to cross the generally quite wide especially women with young road junctions in Hami. children, school-aged children, the elderly and physically impaired. Alternative comparisons and least Similar issues that apply in Altay Because alternative road design cost analysis of different road and Changji also apply in Hami but options have not been considered design options. because of the sensitive issues in Hami the city is left with the associated with the demolition of sensitive issue as to how to resolve the mosque least-cost comparisons problems associated with the for alternative and modifications to demolition of the mosque. proposed alignments would avoid unnecessary complications. Road safety design features to The issues are basically similar to Without the Project the impacts are reduce accidents in terms of those in Altay and Changji and likely to be similar to Altay and fatalities and other injuries. benefits are also likely to be similar Changji. although on a greater scale than Altay because of size and on a smaller scale than Changji because of greater numbers of vehicular traffic in Changji and less adverse weather conditions in Hami. Improvements in existing traffic The proposed east-west traffic link Hami needs to decide whether management measures to ensure is likely to be a positive measure in efficient traffic circulation should be efficient traffic circulation. terms of efficient traffic circulation a greater priority than preserving a but one more the issue of the local mosque and the attendant mosque looms large. social risks associated with this action. Design of city roads to benefit Proper bus bays and pedestrian Not providing for proper bus bays improvements to public transport. crossings in the vicinity of schools, and pedestrian crossings exposes hospitals, places of religious users of public transport to greater worship, cultural and recreational road safety risks than if such design facilities are of benefit to the users interventions are made. of public transport. Increased road lighting to improve As with Altay and Changji increased As with Altay and Changji, not road safety and personal security of street lighting improves the road providing increased street lighting NMT users. safety and personal security of NMT does nothing to improve road safety users. or increase personal security. Road pavement design that takes Hami has less adverse weather Nevertheless, the design of road into consideration adverse weather conditions than either Altay or pavements needs to be adequate to conditions. Changji so costly road pavement ensure that road maintenance designs do not have to take into should be cost effective. account the same adverse weather conditions thereby freeing up at least some of the investment finance for other activities. Capacity building for modern road Similar capacity training to that If there were to be no capacity management, road maintenance, envisaged for Altay and Changji building associated with this Project road safety and rule enforcement. would benefit Hami. However, the the benefits of improving urban Supplementary Appendix M 107

greatest impact lies outside these transport in Hami would be more four field in the area of developing limited. the capacity to undertake public consultations. It is assumed that the present exercise in relation to the Hami mosque will be highly beneficial. Sub-Component 2 – Environmental Improvement Construction of garbage collection The improvements are similar to Public hygiene issues have not stations and the provision of those envisaged in Altay and been addressed in Hami to the transportation facilities, placement Changji but do not include the same extent as in either Altay and of rubbish tins, provision of street- construction of public toilets, which Changji and given the relative cleaning vehicles and snow-clearing Hami states will be financed through population size of Hami by not vehicles. other sources in the future. providing public toilets the city does less to improve public hygiene than in either Altay or Changji. COMPONENT 4 – KUYTUN Sub-Component 1 – Roads Improving existing traffic conditions Unlike the other 4 cities Kuytun has Not a relevant issue. and resolving problems associated channelized traffic islands that with traffic congestion provide some refuge for pedestrians crossing the major junctions. More effective traffic planning to The hierarchy of the city’s road By not carefully defining the improve upon the existing Master network if defined will remove hierarchy of the Kuytun road Layout Plan ambiguity for road users relating to network road users, especially junction placement and priority of pedestrians, cannot benefit from main roads over side roads. This urban transport planning will enable side roads to be used by improvements. pedestrians to travel to schools and local markets by foot. Land use transport planning and This is less of an issue in Kuytun Only relevant in the context of the basic traffic engineering techniques than the other 4 cities, except in points made above. to more effectively manage relation to the points made above. transport in Kuytun. Making local city roads more Channelized traffic islands have to a It is not enough to make local city pedestrian friendly at junctions. large extent obviated this need in roads more pedestrian friendly at Kuytun but the issue in Kuytun is junctions and footpaths leading up the general lack of footpaths for the to these junctions also have to be large percentage of pedestrians in part of the process of making local this city. city roads more pedestrian friendly. Alternative comparisons and least Similar benefits that would accrue to Similar impacts to those of the other cost analysis of different road the other 4 cities also apply in 4 cities. design options. Kuytun. Road safety design features to Improving visibility of both By not improving visibility for both reduce accidents in terms of pedestrians and drivers at the road pedestrians and drivers at the road fatalities and other injuries. junctions would reduce the accident junctions, accidents at existing or rate in Kuytun because it is at the elevated rates will continue. road junctions that most of the traffic accidents occur in Kuytun. Improvements in existing traffic This is not an issue in Kuytun Not a relevant issue. management measures to ensure according to the technical analysis. efficient traffic circulation. Design of city roads to benefit Turing facilities for buses in areas Buses that cannot turn in cul-de- improvements to public transport. close to where most people live will sacs will not travel up such roads to enable buses to travel closer to new collect passengers, resulting in bus stops, which is a significant passengers having to walk further benefit during winter, for elderly and acting as a disincentive for people, and to some extent the physically impaired public transport physically impaired. users. Increased road lighting to improve Similar benefits that would accrue to Similar impacts to those of the other road safety and personal security of the other 4 cities also apply in 4 cities. NMT users. Kuytun but in relation to personal security given the high percentage of ―floating population‖ in Kuytun compared to the other 4 cities personal security is likely to be

108 Supplementary Appendix M

more of an issue. This works both ways: for residents and migrants. Road pavement design that takes Similar benefits that would accrue to Similar impacts to those of Altay into consideration adverse weather Altay and Changji apply to Kuytun and Changji. conditions. because of adverse weather conditions. Capacity building for modern road Improved road maintenance is the By not maintaining roads on a management, road maintenance, major capacity building issue in sustainable basis the costs are road safety and rule enforcement. Kuytun. These will result in lower indirectly passed on to the poorest recurrent spending for Kuytun of road users, most of whom enabling savings to be used for typically are from poorer and more other transport services. vulnerable groups. Sub-Component 2 – Environmental Improvements Construction of public toilets, The public toilets placed at Without these environmental garbage collection stations and the intervals of 500-1,000 meters along sanitation improvements road provision of transportation facilities, each of the new roads will benefit all users are left without the placement of rubbish tins, and road users. With the addition of new convenience of public toilets, provision of street-cleaning vehicles garbage trucks all garbage currently garbage remains uncollected, generated on a daily basis will be and the city has more litter on able to be collected, which will its streets. improve public hygiene. Placement of dustbins improves the overall aesthetic appearance of the city and the street cleaning machines also contribute to public hygiene.

COMPONENT 5 – TURPAN Sub-Component 1 – Roads Improving existing traffic conditions Traffic congestion is not a problem As with the other 4 cities if not and resolving problems associated in Turpan but as with the other 4 enough attention is paid to these with traffic congestion cities if attention is paid to issues issues it is more difficult for associated with junction control and pedestrians to cross wide roads pedestrian access this is a positive safely. benefit for road users. More effective traffic planning to Turpan wants to develop eco- Investors in eco-friendly industrial improve upon the existing Master friendly industrial parks to diversify parks require more effective traffic Layout Plan its existing economic base and planning because they have more effective traffic planning choices of different cities to which contributes to this. Diversification they can invest in. leads to the creation of more local employment opportunities. Land use transport planning and Even though Turpan is a city that Cities that are poorly connected are basic traffic engineering techniques heavily relies on tourism it also not cities that can grow and prosper to more effectively manage wants to develop effective linkages and the effective management of transport in Turpan between the older and newer areas transport is a key component of a in the city. This benefits local people pro-growth strategy. in search of alternative employment opportunities. Making local city roads more This benefits all pedestrians, Cities that lack the reputation for pedestrian friendly at junctions. including most importantly the 2.5 being pedestrian friendly attract million tourists who visit Turpan fewer tourists than those that are from May to October of each year. pedestrian friendly. Alternative comparisons and least Similar benefits that apply to the Similar impacts to those of the other cost analysis of different road other 4 cities will be realized here. 4 cities would be felt here. design options. Road safety design features to Similar benefits that apply to the Accidents involving tourists have an reduce accidents in terms of other 4 cities will be realized here, even greater impact than those fatalities and other injuries. the difference being that with more involving local residents and if the tourist visitors there is more of an Project did not support road safety imperative to incorporate effective design features it would obviate to road safety design features. some extent the benefits of improved urban transport in Turpan. Supplementary Appendix M 109

Improvements in existing traffic Similar benefits that apply to the Similar impacts to those of the other management measures to ensure other 4 cities will be realized here. 4 cities would be felt here. efficient traffic circulation. Design of city roads to benefit Similar benefits that apply to the Similar impacts to those of the other improvements to public transport. other 4 cities will be realized here 4 cities would be felt here, although although in Turpan more emphasis because of the reliance of Turpan also needs to be placed on public on tourism it is also necessary to transport venues in close proximity adopt a tourist-friendly approach to to hotels and restaurants frequented the design of city roads. by tourists. Increased road lighting to improve Similar benefits that apply to the Similar impacts to those of the other road safety and personal security of other 4 cities will be realized here, 4 cities would be felt here, except NMT users. but perhaps more so because more importantly unlit roads do little tourists are less familiar with local to attract or retain tourist traffic. roads and may be at greater risk during hours of darkness than local residents. Road pavement design that takes Turpan has the least adverse Not a relevant issue in Turpan. into consideration adverse weather weather conditions of the 5 cities, conditions. so this is not a design issue here that impacts upon social and poverty issues because savings in investment on pavement design is not a factor to be considered. Capacity building for modern road There appear to be fewer problems To not invest in capacity building for management, road maintenance, here than in the other 4 cities but is road safety and rule enforcement road safety and rule enforcement. generally assessed that capacity would negate some of the more building for road safety and rule important aspects of improved enforcement would be beneficial. urban transport that benefit all road users. Sub-Component 2 – Environmental Improvements Construction of public toilets, Similar benefits to those in Kuytun Turpan as a city that relies heavily garbage collection stations and the will accrue in Turpan, especially in on tourism needs to reach a higher provision of transportation facilities, relation to the collection of solid level of environmental sanitation placement of rubbish tins, and waste. However, because of the than the other four cities and provision of street-cleaning vehicles number of tourists for 6 months of without these interventions the the year sound public hygiene is a Project will not improve the capacity factor that encourages the growth in of Turpan to attract additional tourism. tourists.

110 Supplementary Appendix M

Appendix II SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

Country/Project Title: People’s Republic of China (PRC): Xinjiang Urban Transport and Environmental Improvement Project

Lending/Financing Department/ East Asia Department, Project Loan Modality: Division: Social Sectors Division

I. POVERTY ANALYSIS AND STRATEGY A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy The Xinjiang Urban Transport and Environmental Project will contribute to poverty reduction through improvements in urban transport connectivity, addressing a range of environmental concerns, promoting sustainable economic growth, and supporting institutional reforms in five of Xinjiang Uyghur Autonomous Region’s (Xinjiang) cities: Altay, Changji, Hami, Kuytun, and Turpan. Xinjiang is the PRC’s largest region (17% of total area), with a relatively small population (20,500,000), 60.39% of whom belong to ethnic minorities (largest being the Uyghur constituting 45% of this total). As the historic Silk Road passes through it, Xinjiang has a rich history and culture that has promoted the development of tourism. Despite these assets, it remains one of the poorest regions in the PRC, with 22 out of 27 cities and 68 counties classified as poor. In 2007 about 8.1% of Xinjiang’s urban population lived on incomes below the official poverty line, compared with the national average of 4%, with even higher rates for ethnic minorities living in the cities of Xinjiang. The Project is in line with the PRC Poverty Reduction Strategy for development of the western region, which seeks to reduce the economic and social disparities created by eastern PRC’s raid economic development and supports the government’s development vision of xiaokang (moderately well-off) articulated in the Eleventh Five-Year Plan (11FYP, 2006-2010) aimed at maintaining high rates of growth, but channeling it towards poverty reduction and reducing disparities. The Project supports the PRC country partnership strategy priority areas of (i) strengthening economic and social inclusiveness through increasing investment in the urban development of small cities; (ii) improving the physical environment of small cities; and, (iii) promoting regional cooperation and integration. The Project will do the following:

1. Create jobs and employment opportunities. It is anticipated that 3，396 full time jobs during the construction period and 8，114 follow-on multiplier effect jobs will be created. Of the construction job, 75% will be unskilled. The loan assurance specifically addresses employment of vulnerable groups, ethnic minorities, and women. 2. Improve living standards. Road construction will facilitate mobility, access, and affordability for local populations to key basic services and destinations. It will also make urban roads safer to travel on thereby reducing the number of traffic accidents. Measures include the construction of footpaths, street lighting, controlled pedestrian crossings, and traffic calming measures. The environmental improvements will improve health-related issues associated with a greater emphasis on public hygiene through the provision of public toilets and bathrooms, sustainable solid waste management practices, and the general aesthetic appearance of urban areas. 3. Protect the environment. The environment management plan (EMP) outlines clear actions for environmental protection (land, water and archaeological sites) during construction, and these are accounted for in the loan assurances. 4. Focus on ethnic minority areas. Xinjiang is predominately an ethnic minority area. Of the five cities Turpan has the highest percentage of ethnic minorities (78%), followed by Altay (39%), Hami (28%), Changji (22%), and Kuytun (5%). 5. Provide skills training. The Project will include skills training (including for language, operation and maintenance of public toilets/bathrooms, construction, peri-urban agriculture, local tourism, and servicing the oil and gas industry) in collaboration with other stakeholders, and through the Resettlement Plans (RPs) and Ethnic Minority Development Plans (EMDPs). Vulnerable groups, ethnic minorities, and women are prioritized in the loan assurances. 6. Support gender inclusion. Loan assurances will ensure the participation of women through the Project. In an addition a grant will be sought for a Turpan based Women’s Tourism Enterprise Development Project, which would facilitate women’s involvement in decision-making and development activities is brought into the mainstream.

B. Poverty Analysis Targeting Classification: General Intervention 1. Key Issues The Project is classified as General Intervention. It will benefit 227,778 people in Altay, 403,218 in Changji, 418,918 in Hami, 302,089 in Kuytun, and 260,271 in Turpan. The urban poverty rate in Altay according to the Project Socioeconomic Survey is 27% (41.7% for ethnic minorities and 27.7% for single adult households), Changji 10.9% (13.3% for ethnic minorities and 10.5% for single adult households), Hami 17.4% (30.7% for ethnic minorities and 18.8% for single adult households), Kuytun 8.5% (13.6% for ethnic minorities and 16.5% for single adult households), and Turpan 12% (19.6% for ethnic minorities and 13% for single adult households). Average per capita incomes for poor households in Altay are CNY 1,332 per annum (US$0.52 per day), Changji CNY 1,493 per annum (0.58 per day), Hami CNY1,116 per annum (US$0.44 per day), Kuytun CNY 1,000 per annum (US$0.39), and Turpan CNY 918 (US$0.36).

The causes of poverty in the five Project cities varies somewhat. In Altay there are few employment or other income Supplementary Appendix M 111 generation activities outside the public sector because it is a relatively small city and more remote than the other four cities. In Changji while there are a significant number of households who also derive income from agricultural-based activities unless they also derive a portion of their income from non-farm income generation activities they are relatively poor although the poorest households are largely urban-based. A similar situation prevails in Hami but in Kuytun the very poorest are those who have to rely on day wage-labor. In Turpan the very poor are those households who do not have access to public sector employment are able to benefit from seasonal tourism. In all five Project cities the poor are typically less well-educated, are likely to fall ill more often, and have a higher dependency ratio. All poor households surveyed by the Project have a small annual surplus of income over expenditure but the level of savings are very low and other assets such as housing are lower in value than for non-poor households. Poor households cannot easily trade their way out of poverty either because they lack access to affordable micro-finance and the management skills and experience to develop and profitably operate small businesses.

Benefits to poor people from the Project will include Project-related employment and expanded employment opportunities as a result of improvements to urban transport infrastructure that will improve access to local employment opportunities and the ability to provide a range of goods and services more readily to other consumers including tourists in Altay, Turpan and Hami, oil and gas workers in Kuytun, and new investors in Changji city’s economic development. Because the poor are more likely to be pedestrians and own forms of NMT they will benefit from improved traffic management and road safety. Personal security, especially for poor women and children will also be improved through the provision of street lighting. In a city such as Altay where the Project has been able to effectively respond to local demand culturally appropriate toilets and bathrooms will be constructed for communal use. Other environmental improvements common to all five cities will contribute to an improvement in public hygiene, which will be of even greater benefit to the poor than the non-poor because the poor use public spaces due to inferior housing conditions than the non-poor.

2. Design Features. The design has been highly participatory in nature, involving detailed consultations with affected people including most importantly vulnerable people, ethnic minorities and women, in an attempt to reduce impacts on land acquisition and resettlement. Examples include the time spent on exploring options to the demolition of a century old symbolically important mosque in Hami, avoiding the acquisition of arable land in Changji and Turpan, and mitigating noise and safety risks in close proximity to educational facilities in Altay and Kuytun. Project assurances call for the employment of local labor, especially vulnerable people, ethnic minorities and women. EMDPs outline strategies for mitigating adverse impacts and promoting positive benefits such as employment, skills training, language training, and training for contractors and workers on appropriate cultural understanding. An HIV/AIDS awareness program for each of the five cities has been included not just as a reactive approach to the social risk but as a proactive approach to empower locally at-risk groups. Interpreters with experience in public works construction will facilitate the work of construction units.

II. SOCIAL ANALYSIS AND STRATEGY A. Findings of Social Analysis The Project is not specifically targeted at individual households but households living in close proximity to the roads to be constructed or upgraded with benefit directly from footpaths and street lighting. This intervention is strongly supported by the overwhelming majority of people consulted during Project design, especially women and other NMT road users because it improves road safety, personal security, and makes movement on foot more convenient. The construction of public toilets in downtown areas will benefit all people who frequent downtown areas for shopping, business or recreational purposes. Positioning of rubbish tins at strategic intervals in downtown areas also contribute to a cleaner and greener environment rendering each of the five cities better places to live in. Focus group discussions confirmed that the residents of these five cities support the cleaning and greening of their individual city although not at the expense of economic development.

Impacts on Health and Safety. Dust generated by unsealed roads in all five cities is considered a major cause of respiratory disorders by at least 40% of the population. The permanent sealing of these unsealed roads will obviate this nuisance factor. Re-routing of heavy traffic will result in lower noise levels, especially at night when there is more heavy traffic traveling through these cities, and will also result in lower exhaust emissions. Over 35% of the population in each city considers this to be an important impact on health. Improved public hygiene through the better management of solid waste, including rubbish in areas where the public congregate. Public spaces free of rancid urine and human defecation are not only good for public hygiene but improve the appearance of public spaces. Households in the Project area consider they are capable of managing household level hygiene issues but not public hygiene issues. Better roads with improved traffic management and road safety measures will have a positive impact on the safety of road users, including the users of NMT because there will be a more rational and coordinated approach to multi-modal forms of transport. Keeping heavy trucks out of residential and downtown areas is a very positive safety impact.

Affordability. This is not an issue in this Project except for the use of public bathrooms in Altay because the Project will not be providing access to public utilities. In Altay potential beneficiaries have all agreed they are able and willing to pay to use the proposed bathrooms because they cannot afford the same in their own houses.

Impacts on Employment. Approximately 3,396 full-time jobs (1,683 in Altay, 1,278 in Changji, 105 in Hami, 130 in Kuytun, and 200 in Turpan) will be created over the construction period and follow-on multiplier effects are expected to create 8,114 full-time jobs (220 in Altay, 5,584 in Changji, 90 in Hami, 270 in Kuytun, and 1,950 in Turpan). Currently unemployed and

112 Supplementary Appendix M underemployed (including ethnic minority women desirous of entering the paid workforce) are likely to full 75% of the unskilled jobs although a minimum quota of 20% has been established for women. This translates into CNY72,215,500 (CNY38,539,000 in Altay, CNY24,733,600 in Changji, CNY1,132,900 in Hami, CNY2,842,000 in Kuytun, and CNY4,968,000 in Turpan of costs returned to the northern and central Xinjiang economy.

B. Consultation and Participation 1. The technical assistance project utilized several participatory approaches for input from a range of stakeholders in the Project cities. A socioeconomic survey at the household level covered 806 households and information relating to 2,874 people. Thirty focus group discussions involving an average of 18 persons per FGD or a total of 540 people were also held. In Hami where a mosque is likely to be demolished additional public consultations were held involving the Imam of the mosque, Friday Prayer attendees, local traders, merchants and shopkeepers, the Islamic Association, community residential centers, and independent experts both in Hami and Urumqi. Four separate visits and three rounds of consultations involving over 500 people were made to clarify this sensitive issue and a detailed narrative of the discussions and records of those participating in the consultations has been documented. Key informant interviews were also held with bureaus and the All China Women’s Federation to inform the Project design. For the resettlement plans, separate socioeconomic surveys, community meetings, opinion surveys, and specific impact studies of 3,439 affected people were involved. Development of the environmental impact assessments and EMP involved two rounds of public consultations. EMDPs have been prepared collaboratively and discussed with the communities. The RPs, EMDPs, and EMP set out detailed ongoing public participation plans.

2. What level of consultation and participation (C&P) is envisaged during the project implementation and monitoring?  Information sharing  Consultation Collaborative decision making Empowerment

3. Was a C&P plan prepared? Yes No Public disclosure of all Project documents was made at the Project Management Office in both Urumqi and each of the Project offices in the five cities, including in appropriate ethnic minority languages, on the Asian Development Bank website. This included the Project Information Document (PID), design and monitoring framework, EMDPs, RPs, summary EIA, RRP, public sector legal agreement, Project administration memorandum, and social and environmental monitoring reports. A PID has been prepared for each Project city. Booklets outlining the RPs were distributed to the affected households and disclosure meetings held. Copes of the booklet are available each of the Project Management Offices, and each affected community residential association office. Each PID (available in Chinese and local languages) contains: (i) map of the affected areas; (ii) description of the Project, its aims, and subcomponents; (iii) details of the works; (iv) a timetable of the Project activities, including estimated commencement and completion dates; (v) expected social, economic, and environmental impacts; (vi) environmental and social safeguards; (vii) the compensation policy and entitlements; (viii) an outline of livelihood restoration measure; (ix) the working of the compensation committee and grievance redress committee; (x) an outline of how consultation and participation with RPs and communities will continue; and, (xi) the Project communications strategy, including how people can find out what business opportunities that may arise in conjunction with the Project and where people can get further information about the Project. RPs and EMDPs indicate how consultation will continue through implementation. C. Gender and Development 1. Key Issues. Aside from the economic and employment impacts, the social impacts are clearly gender based. Upgrading and constructing new footpaths with street lighting, controlled pedestrian crossings and traffic calming measures are interventions that women in each of the five Project cities strongly support. They also support measures to improve public hygiene associated with rubbish collection and for poorer women without access to indoor toilets or bathrooms the complementary measures proposed are measures the women themselves proposed. Women anticipate benefits such as the improved living environment, increased road safety and personal security, new employment opportunities, reduced time burdens, and reduced incidence of preventable diseases. 2. Key Actions. Measures included in the design to promote gender equality and women’s empowerment—access to and use of relevant services, resources, assets, or opportunities and participation in decision-making process: Gender plan  Other actions/measures No action/measure Project assurances prioritize women, especially poor and ethnic minority women, for employment and skills training. A 20% target has been set for Project employment opportunities for women and the poor during the construction phase and 50% of related training. The proposed grant project in Turpan focuses on women.

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS

Issue Significant/Limited/ Strategy to Address Plan or Other Measures No Impact Issue Included in Design Altay, Changji, Hami and Involuntary Turpan RP have been  Full Plan Resettlement prepared in accordance  Short Plan Significant with the government’s own Resettlement Framework regulations and those of No Action the Asian Development Bank, and disclosed to the Supplementary Appendix M 113

affected people and the public. Internal and external monitoring arrangements will be put into place. The Project areas are Indigenous Peoples majority ethnic areas and  Plan Significant Project land acquisition Other Action affects ethnic minorities to Indigenous Peoples a greater degree than the Framework general population. The No Action EMDPs have been prepared for all five Project cities. The Project will create Labor 3,396 full-time jobs over Employment Significant the construction period. Plan opportunities Project assurances will Other Action Labor retrenchment ensure that all employment  No Action Core labor standards and labor standards as provided in the applicable laws and regulations are complied with, address labor standards, and prioritize local labor basic training and skills promotion. The Project does not Affordability No Impact involve components that  Action require an affordability No Action analysis. Other Risks and/or HIV/AIDS is a limited Vulnerabilities problem in the Project Plan HIV/AIDS Limited cities but with an increase  Other Action Human trafficking in both migration and No Action Others(conflict, political tourism and normal risks instability, etc), please during construction period specify the Project will provide information and education on sexually transmitted diseases. This will include HIV/AIDS. IV. MONITORING AND EVALUATION

Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during project implementation?  Yes □ No

114 Supplementary Appendix M

Appendix III XINJIANG URBAN IMPROVEMENT TA PROECT Socio-Economic Survey (Social Impact Assessment) February 2008

City HH Survey Registration No. Ward Commune Village A. HOUSEHOLD DETAILS A.1 Address No. & Street

A.2 Respondent Name Age

Gender Male Female

Civil Status Single Separated Married Divorced Widow/Widower Live-in

Educational None Attainment Kindergarten Primary Lower Secondary Upper Secondary Vocational College University Other (Specify...... )

Relationship to HH head Child HH head Spouse Relative

A.3 HH Size (Please put exact HH size number of persons in box.)

A.4 No. of Families in HH (Please specify exact no. of families in HH in box.)

A.5 Household Composition (account only for living members permanently staying with HH) Please mark ―H‖ in the box for the person serving as the ―household head‖ Family 1 Father Mother Number of persons of family 1 Other Members

Family 2 Father Mother Number of persons of family 2 Other Members

A.6 Ethnic Group Family 1 Family 2 A.7 Religion Muslim Buddhist Christian A.8 Languages Chinese Uyghur Kirgzhiz Kazak Manchu Other (specify)

Supplementary Appendix M 115

A.9 Children DETAILS ON OTHER HH MEMBERS Other 1 2 3 4 Relatives a) Age b) Gender

c) Civil Status

d) Educational Attainment e) Members still attending school B.1 WORK, INCOME AND EXPENDITURE DETAILS f) Source/s of Income (Can Have More Than One Source) Wages and Salaries (Public Sector) Wages and Salaries (Private Sector) Small and Medium Enterprise Agriculture, Horticulture and Livestock Pensions or Other Forms of Public Assistance Other (Please Specify……………….) Nil g) Employment Status Permanent (Full-time) Permanent (Part-time) Temporary (Full-Time) Temporary (Part-time) Retired Unemployment/Underemployed Other Status

h) Place of Employment Center of City Urban Wards Peri-Urban Wards Local Prefecture Urumqi Elsewhere in XUAR Other Provinces/Regions in China

i) Main Income (CNY) Monthly < 100 > 101 – 200 > 201 – 300 > 301 – 400 > 401 – 500 > 501 – 600 > 601 – 700 > 701 – 800 > 801 – 900 > 901 – 1000 > 1000 – 1500 > 1501 - 2000 > 2001 – 3000 > 3001 – 4000 > 4001 and Above

j) Additional Income(CNY) Monthly

116 Supplementary Appendix M

< 100 > 101 – 200 > 201 – 300 > 301 – 400 > 401 – 500 > 501 – 600 > 601 – 700 > 701 – 800 > 801 – 900 > 901 – 1000 > 1001 - 1500 > 1501 - 2000 > 2001 – 3000 > 3001 – 4000 > 4001 and Above

Amount Expense Item

A B C D E F G H I J K Household Monthly t) Expense < 100 > 101 – 200 > 201 – 300 > 301 – 400 > 401 – 500 > 501 – 600 > 601 – 700 > 701 - 800 > 801 – 900 > 901 – 1000 > 1001 – 1500 > 1501 – 2000 > 2001 – 3000 > 3001 – 4000 > 4001 and Above Notes:

A Housing D Gas G Clothes J Culture and Recreation B Electricity E Telephone H Transportation K Health (yearly) C Water F Food I Education OWNERSHIP OF CONSUMER DURABLES AND MEANS OF TRANSPORT Color DVD Refrigerator Air Conditioner Television Player Soft Bicycle Animal Cart Motorbike Furnishings Other Car Other Goods Vehicle MOST COMMON MEANS OF MOBILITY/TRANSPORTATION (MALE) Pedestrian Bicycle Public Transport Motorbike Animal Cart Car Other Vehicle MOST COMMON MEANS OF MOBILITY/TRANSPORTATION (FEMALE) Pedestrian Bicycle Public Transport Motorbike Animal Cart Car Other Vehicle

C .1 ILLNESSES OVER THE PAST SIX MONTHS  Asthma  Bronchitis  Tonsillitis  Influenza  Pneumonia  Eye Infection  Diarrhea  Hepatitis  Reproductive Tract (females) C. 2 CAUSES OF RESPIRATORY DISORDERS IN HOUSEHOLD Supplementary Appendix M 117

 Road conditions (dust)  Heavy traffic (exhaust emissions)  Air Pollution (coal burning)  Poor dietary practices  Poor hygiene practices  Others C. 3 HEALTH AND SCHOOL ATTENDANCE OF CHILDREN IN HOUSEHOLD  No of children in school  Total no of days each child sick  Total no of days each child did not attend school C. 4 COSTS ASSOCIATED WITH CHILDREN’S ILLNESSES IN HOUSEHOLD (LAST 6 MONTHS)  Pharmaceutical drugs  Traditional remedies  Medical consultations  Transport costs  Days lost by caregiver  Income lost by caregiver Please note gender of caregiver C. 5 COSTS ASSOCIATED WITH ADULT MEMBERS ILLNESSES IN HOUSEHOLD (LAST 6 MONTHS)  Pharmaceutical costs  Traditional remedies  Medical consultations  Transport costs  Days lost by ill member  Days lost by caregiver  Income lost by ill member  Income lost by caregiver Please note gender of (i) ill member and (ii) caregiver

D INFORMATION ON OWNERSHIP/OCCUPANCY/RESIDENCY D.1 House A Status of Occupancy Owner Renter Supplied as Part of Job B Used for What Purposes Residential Only Combined Residential/Commercial C Size of House Rooms Square Meters D Estimated Value of Your House CNY E Monthly Rent Paid CNY D.2 Land F Status of Tenure Owner Renter Informal Arrangements G Use of Land Agricultural Market-Gardening Industrial Commercial Other, please specify H Size of Land Hectares Square Meters I Estimated Value of Land CNY J Monthly/Yearly/Output Rent Paid CNY D.3 NO OF YEARS RESIDENT IN CITY D.4 ORGINAL PLACE OF BIRTH E. ACCESS TO BASIC INFRASTRUCTURE & SERVICES E.1 Water Supply Connected to City Water Supply System Public faucet Private Well Other, please specify E.2 Electricity With Electricity No Electricity E.3 Sanitation Facilities Open-Pit None E.4 Solid Waste/Garbage Disposal

118 Supplementary Appendix M

Garbage collected by Local Authorities Self-Disposal E.5 Community /Social Infrastructure School Elementary Secondary College Health Hospital Market Mosque Center Park /Playground Note: Estimate Travel Time Using Public Transport

F. SOCIAL IMPACTS F.1 Improved Access to Essential Services in City Yes No Unsure Reasons F.2 Improved Road Safety for Children and Elderly if Footpaths Included Yes No Unsure Reasons F.3 Improved Sanitation means Public Health Risks Reduced Yes No Unsure Reasons Improved Urban Transport and Environment Attracts More Job-Creating F.4 Investment Yes No Unsure Reasons F.5 Result in Overall Improvement in Our Household’s Living Standards Yes No Unsure Reasons Has this Project been Targeted to Meet the Transport and Environmental Needs F.6 of Your Household Yes No Unsure Reasons What other Priorities should Local City Authorities Consider? (Leave F.7 Respondent To Decide) 1 2 3 4 5 G. VALUE OF SERVICES AVAILABLE IN YOUR CITY G.1 Do you get full value for money for the public transport services you pay for? Yes If not, please briefly explain why not (e.g. fares are too high)

G.2 Do you get full value for money for the private transport services you pay for? Supplementary Appendix M 119

Yes If not, please briefly explain why not?(e.g. fares are too high)

G.3 To improve transport services in your city would you be prepared to pay higher fares? If yes, please explain how much more you would be prepared to pay (e.g. for a single journey)

No G.4 Do you get full value for the money you pay for the disposal of garbage? Yes If not, please briefly explain why not (e.g. garbage collected on an irregular basis)

G.5 Would you be prepared to pay more for more efficient disposal of garbage? If yes, please explain how much more you would be prepared to pay (e.g. for monthly collection fees)

No H. AVAILABILITY OF SERVICES PROVIDED IN YOUR CITY H.1 Are you satisfied with the transport services currently available in your city? Yes If not, please briefly explain why not (e.g. restricted service to local neighborhood)

Are there any improvements that you could suggest?

H.2

H.3 Are you able to easily use the city’s waste management services? Yes If not, please explain why not (e.g. collectors ignore the neighborhood)

I WHAT IS THE ACTUAL COST OF THESE SERVICES I.1 Single journey on public bus……………………..CNY I.2 Single journey on private bus……………………CNY. I.3 Typical single journey by taxi (day-time)……….CNY; (night-time)……………CNY I.4 Typical hire charge for motorized cart………….CNY I.5 Typical hire charge for NMT (e.g. animal powered cart)……………………..CNY I.6 Monthly disposal charges…………….CNY

J OTHER USER AND AFFORDABILITY ISSUES Can you identify alternative transport services that are available or you would like to see available in your city? J.1

120 Supplementary Appendix M

Are there alternative methods to dispose of solid waste generated in your city than those methods currently used?

J.2

If it could be demonstrated to you that by paying higher fees to reduce the exhaust emissions of transport vehicles in your city would you be prepared to pay higher transport user charges?

J.3

If it could be demonstrated to you that paying higher waste management fees to improve public and private sanitation in your city would you be prepared to pay higher waste management disposal fees?

J.4

If you were afforded the opportunity to change local city government policies to make your city cleaner and greener to live in how would you improve on existing urban transport and environmental policies that you understand in your city is implementing?

J.5

Are there any other issues you would like to raise in relation to improvements to existing transport and environmental services in your city?

J.6

Name of Interviewer: Date of Interview:

Supplementary Appendix M 121

Appendix IV Rationale, Format, and Location of the FGDs

1. The FGD are designed to facilitate outcomes whereby a range of participants representing the different stakeholder groups provide the Project with qualitative assessments as to what they think the likely impact of this Project will be on their living standards. The FGD are not designed to extract ―factual‖ information from the participants but rather their own opinions, which may or may not be grounded in factual reality, are to be presented in a way that enable the TA Team to get a very real sense of local perceptions. This is impossible via the more empirically and quantitatively based household interviews.

2. However, FGD as the concept of ―discussion‖ and ―participation‖ implies are not question-and-answer sessions nor are they an opportunity for the ―social elite‖, whether it is gendered or otherwise, to dominate FGD. This is why we are facilitating a range of different FGD to ensure that the voices of even the poorest and most vulnerable living in these cities can be heard. More often than not if FGD are facilitated or held at venues selected by officials – in this context we are referring to the local PMO – the only voices we will hear are those of male officials, who unfortunately tend to speak on behalf of every other stakeholder group. Our FGD are to facilitate participation of all stakeholders not reinforce the already over-participation of officials in civil affairs.

3. We must let FGD participants decide for themselves what opinions they want to offer. However, as facilitators we also want to ensure they discuss Project-related matters rather than just anything under the sun so there is no reason why we should not guide the discussion to ensure it does not get off the point. Yet simultaneously we must ensure that all FGD participants who want to speak are permitted to do so but we must also recognize that some FGD participants will only want to talk among other FGD participants on an individual basis. We should encourage such FGD participants to raise the issues with all FGD participants.

4. The FGD should begin with a brief explanation as to why we are facilitating the FGD and what objectives we hope to achieve. Because real FGD are information-sharing exercises we need to stress that when explaining the Project that we not only value their opinions bit if they ask us for additional information we must be prepared to provide it. This is the real essence of participation and without it we are simply involved in one-way processes associated with information-gathering.

5. During the FGD the facilitators must ensure all FGD participants are accorded the right and opportunity to actively participate. In instances where one or two FGD participants might be trying to dominate the FGD the role of the facilitator is to ensure they do not. Such people must be told politely but firmly that all FGD participants have a right to participate.

6. The summaries of the FGD should be made available to FGD participants to ensure they were not misrepresented during the FGD and the FGD participants must be afforded the opportunity to correct any misrepresentations that may have occurred during the facilitation process. A record of these FGD consultations must be made kept for future reference.

122 Supplementary Appendix M

Issues for FGD

Are cities in China good places to live in? How does your city compare to other cities in XUAR and elsewhere in China? What are the positive and negative aspects of living in your city? How do you think the positive aspects can be improved upon and the negative aspects diminished? Do you think these changes can occur in your lifetime? If you were responsible for making planning improvements in your city what would be your priorities and would you be prepared to in part pay for these improvements:

1. 2. 3. 4. 5. What would be your ideal vision, both in terms of physical and social infrastructure, how would you like your city to look like if financial resources were not the major issue and you were given a free hand to design the city in the way you wanted to? What are the characteristics of being poor in your city? If one is poor is it better to be poor in the city or the rural areas? What ideas do you have for eliminating poverty in your city? Can poverty be eliminated by local efforts or is the assistance of the government, including at the regional and national level necessary? This Project will result in a range of urban improvements including to city streets and the physical environment. Do you think the improvements proposed by the Bureau of Construction are value for money and will result in the type of improvements you are seeking? Can you explain how you and your household would personally benefit from these improvements? Let us look at the proposed street improvements because they will take much of the investment. Have the streets been selected really the streets that will improve urban access to schooling, healthcare facilities, markets, entertainment and recreational centers in your city? Who will benefit more from these improvements, better off people living in the city or everyone? If not everyone benefits how can the Project be more inclusive? Where streets are being upgraded is it necessary to ensure that footpaths, light- controlled pedestrian crossings and speed humps are included to ensure the road safety of young children and other pedestrians? What other road safety features can you think of that might be important? Upgrading streets are good for households with motorcars or motorbikes but are they necessarily a priority for households who can only afford NMT such as bicycles and donkey-drawn carts? What should the city’s policy be towards people who can only afford NMT and those who can afford cars and motorbikes? Do you have any other suggestions apart from those that you might have made during the course of this discussion that this Project would be capable of financially supporting?

Supplementary Appendix M 123

No of Gender of Ethnicity of City Date Venue participants participants participants Altay Jin Shan Road FGD1 March-6 sub-district Jin Shan Road FGD2 March-7 CRC Jie Fang Road FGD3 March-8 Sub-district FGD4 March-9 Dong Jie CRC La Si Te FGD5 March-10 township Dun Ba Za FGD6 March-11 village Changji Jian Guo Road FGD1 Feb-21 Sub-district Xiao San Si FGD2 Feb-22 Gong one village Bei Gou One FGD3 Feb-23 village Zhong Shan Feb-24 FGD4 Road Sub- Morning district Feb-24 FGD5 Tian Yuan CRC Afternoon FGD6 Feb-25 Xi Jie CRC Hami Da Shi zi FGD1 Feb-26 Mosque Feb-27 Xi He sub- FGD2 Morning district Feb-27 Zhong Shan FGD3 Afternoon Bei Road CRC Feb-28 Bin He Road FGD4 Morning CRC Feb-28 Zhong Shan FGD5 Afternoon Nan Road CRC Da Ying Men FGD6 Feb-29 village Kuitan Feb-17 Tuan Jie Road FGD1 Sub-district Feb-18 FGD2 Long Xi Li CRC Morning Feb-18 Shu Guang Li FGD3 Afternoon CRC Feb-19 Bei Jing Road FGD4 Morning Sub-district

Feb-19 FGD5 Wu Sun CRC Afternoon Kang Le Yuan FGD6 Feb-20 CRC Turpan Gao Chang FGD1 March -1 Road Sub- district Shuang Yong FGD2 March-2 CRC FGD3 March-3 Xing Fu CRC March-4 FGD4 Ya Er township Morning Lao Cheng March-4 FGD5 Dong Men Afternoon villalge Pu Tao FGD6 March-5 township