Laibin Guizhong Water Town Development & Investment Co., Ltd. (LGWTDI)

RP1371

World Bank-financed Guangxi Laibin Water Environment Project

Resettlement Action Plan

Laibin Guizhong Water Town Development & Investment Co., Ltd. (LGWTDI) November 2012 Foreword

I. Purpose of preparing this resettlement action plan 1 The resettlement action plan (RAP) is prepared in accordance with the applicable laws of the People’s Republic of China and local regulations and a series of provisions in the Bank Operational Policy OP4.12 on Involuntary Resettlement for the purpose of “developing an action plan for resettlement and restoration for the people affected by the project, so that they benefit from the project, their standard of living is improved or at least restored after the completion of the project”.

II. Definitions of terms Displaced persons 2 Based on the criteria for eligibility for compensation, “Displaced Persons” may be classified in one of the following three groups: a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); b) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the Resettlement Plan; and c) those who have no recognizable legal right or claim to the land they are occupying. 3 Persons covered under paragraphs 2(a) and (b) are provided compensation for the land they lose, and other assistance. Persons covered under paragraph 2(c) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objective set out in this policy, if they occupy the project areas prior to a cut-off datei established by the borrower and acceptable to the World Bank. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in paragraph 2(a), (b), or (c) are provided compensation for loss of assets other than land.

Compensation and resettlement measures 4 To address the following impacts of the involuntary taking of land: (i) displacement or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location, a Resettlement Plan or a resettlement policy framework shall be prepared to cover the following: (a) The Resettlement Plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) informed about their options and rights pertaining to resettlement; (ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and (iii) provided prompt and effective compensation at full replacement costii, for losses of assets attributable directly to the project. (b) If the impacts include physical displacement, the Resettlement Plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) provided assistance (such as moving allowances) during displacement; and

i Normally, this cut-off date is the date the census begins. The cut-off date could also be the date the project areas was delineated, prior to the census, provided that there has been an effective public dissemination of information on the area delineated, and systematic and continuous dissemination subsequent to the delineation to prevent further population influx. ii "Replacement cost" is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into account.

1 (ii) provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site. (c) Where necessary to achieve the objective of the policy, the Resettlement Plan or resettlement policy framework also includes measures to ensure that displaced persons are: (i) offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; (ii) provided with development assistance in addition to compensation measures described in paragraph 4(a)(iii), such as land preparation, credit facilities, training, or job opportunities. 5 Cut-off date: means the date of publication of the announcement of land acquisition and property demolition in this project. After this date, the displaced persons shall not build, rebuild or expand their properties; shall not change the uses of their properties and land; shall not lease their land, lease, sell or purchase their properties; and any person that moves in after this date shall not qualify as a displaced person.

2 Contents

1 OVERVIEW OF THE WE PROJECT...... 1

1.1 BACKGROUND 1

1.2 SCOPE OF CONSTRUCTION AND RESETTLEMENT IMPACTS 1 1.2.1 World Bank-financed Project...... 1 1.2.2 Other Projects...... 1

1.3 MEASURES TO REDUCE RESETTLEMENT IMPACTS 3

1.4 PROJECT PREPARATION AND PROGRESS 3 2 IMPACTS OF THE WE PROJECT...... 4

2.1 PROJECT IMPACT SURVEY 4

2.2 AFFECTED AREA 4

2.3 IMPACTS OF THE WE PROJECT 5 2.3.1 Summary of Affected Population...... 5 2.3.2 Collective Land Acquisition...... 6 2.3.3 Temporary Land Occupation...... 7 2.3.4 Permanent Occupation of State-owned Land...... 7 2.3.5 Demolition of Rural Residential Houses...... 10 2.3.6 Demolition of Urban Residential Houses...... 10 2.3.7 Demolition of Properties of Entities...... 11 2.3.8 Demolition of Attachments...... 14 2.3.9 Vulnerable Groups...... 14 3 SOCIOECONOMIC PROFILE OF THE PROJECT AREA...... 16

3.1 SOCIOECONOMIC PROFILE OF THE AFFECTED CITY AND DISTRICT 16

3.2 SOCIOECONOMIC PROFILE OF THE AFFECTED VILLAGES/COMMUNITIES 17 3.2.1 Households Affected by LA...... 18 3.2.2 Households Affected by HD...... 20

3.3 ANALYSIS OF MINORITY POPULATION 21

3.4 SOCIAL GENDER ANALYSIS 22 3.4.1 Overall Development of Women in the Project Area...... 22 3.4.2 Survey on Women’s Development in the Project Area...... 23 4 LEGAL FRAMEWORK AND POLICY OBJECTIVES...... 24

4.1 POLICY FRAMEWORK 24

4.2 KEY PROVISIONS OF LAWS AND POLICIES ON RESETTLEMENT 25

4.3 KEY DIFFERENCES BETWEEN BANK POLICIES AND PRC LAWS 37

4.4 RESETTLEMENT POLICIES OF THE WE PROJECT 38 4.4.1 Policy on for Compensation for Collective Land Acquisition and Labor Resettlement..38 4.4.2 Policy on Permanent Occupation of State-owned Land...... 38 4.4.3 Policy on Compensation and Resettlement for Residential House Demolition...... 39 4.4.4 Compensation and Resettlement Policy for Entities...... 39 4.4.5 Compensation and Restoration Policy for Temporary Land Occupation...... 40

iii 4.4.6 Compensation Policy for Vulnerable Groups...... 40 4.4.7 Compensation Policy for Infrastructure and Ground Attachments...... 40 5 COMPENSATION RATES...... 41

5.1 COMPENSATION RATES FOR ACQUISITION OF RURAL COLLECTIVE LAND 41

5.2 COMPENSATION RATES FOR PERMANENT OCCUPATION OF STATE-OWNED LAND 41

5.3 COMPENSATION RATES FOR TEMPORARY LAND OCCUPATION 41

5.4 COMPENSATION RATES FOR RESIDENTIAL HOUSE DEMOLITION 42

5.5 COMPENSATION RATES FOR DEMOLITION OF PROPERTIES OF ENTITIES 42

5.6 COMPENSATION RATES FOR GROUND ATTACHMENTS 43

5.7 OTHER COSTS 43 6 PRODUCTION AND LIVELIHOOD RESTORATION PROGRAMS FOR APS...... 45

6.1 PERMANENT ACQUISITION OF COLLECTIVE LAND AND RESETTLEMENT PROGRAM 45 6.1.1 Impacts of Permanent Acquisition of Collective Land...... 45 6.1.2 Resettlement Program for Permanent Acquisition of Collective Land...... 47

6.2 RESETTLEMENT PROGRAM FOR PERMANENT OCCUPATION OF STATE-OWNED LAND 49

6.3 RESETTLEMENT PROGRAM FOR DEMOLITION OF RESIDENTIAL HOUSES 50

6.4 RESETTLEMENT FOR DEMOLITION OF PROPERTIES OF ENTITIES 54

6.5 RESTORATION PROGRAM FOR TEMPORARY LAND OCCUPATION 55

6.6 RESTORATION PROGRAM FOR AFFECTED VULNERABLE GROUPS 55

6.7 PROTECTION OF WOMEN’S RIGHTS AND INTERESTS 56

6.8 RESTORATION PROGRAM FOR GROUND ATTACHMENTS 56 7 ORGANIZATIONAL STRUCTURE...... 57

7.1 ORGANIZATIONAL SETUP 57

7.2 ORGANIZATIONAL RESPONSIBILITIES 58

7.3 STAFFING 60

7.4 MEASURES TO STRENGTHEN INSTITUTIONAL CAPACITY 60 8 RESETTLEMENT BUDGET AND FUNDING SOURCES...... 61

8.1 BUDGET 61

8.2 ANNUAL INVESTMENT PLAN 62

8.3 RESETTLEMENT FUNDING SOURCES 63

8.4 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS 63 8.4.1 Fund Flow...... 63 8.4.2 Management and Disbursement...... 65 9 PUBLIC PARTICIPATION AND CONSULTATION, AND GRIEVANCE REDRESS.....66

9.1 PUBLIC PARTICIPATION STRATEGY AND METHODS 66

9.2 COMPLETED PUBLIC PARTICIPATION AND CONSULTATION ACTIVITIES 66

9.3 INFORMATION DISCLOSURE 68

9.4 PUBLIC PARTICIPATION PLAN FOR THE NEXT STAGE 69

9.5 APPEAL HANDLING PROCEDURE 69 10 IMPLEMENTATION SCHEDULE...... 71

10.1 PRINCIPLES FOR RESETTLEMENT IMPLEMENTATION 71

iv 10.2 SCHEDULE FOR KEY IMPLEMENTATION TASKS 71 10.2.1 Principles for Schedule Development...... 71 10.2.2 Master Implementation Schedule...... 71 11 M&E ARRANGEMENTS...... 73

11.1 INTERNAL MONITORING 73 11.1.1 Implementation Procedure...... 73 11.1.2 Scope of Monitoring...... 73 11.1.3 Internal Monitoring Reporting...... 73

11.2 INDEPENDENT EXTERNAL MONITORING 73 11.2.1 Independent Monitoring Agency...... 73 11.2.2 Monitoring Procedure and Scope...... 74 11.2.3 Monitoring Indicators...... 74 11.2.4 Post-evaluation...... 74 12 ENTITLEMENT MATRIX...... 76

APPENDIXES 80

APPENDIX 1 SCHEMATIC MAP OF THE WE PROJECT 80

APPENDIX 2 DETAILED RESETTLEMENT BUDGET 81

APPENDIX 3 SURVEY ON RESETTLEMENT CASES OF SIMILAR PROJECTS84

List of Tables TABLE 1-1 RESETTLEMENT IMPACTS OF THE WE PROJECT...... 1

TABLE 1-2 RESETTLEMENT IMPACTS OF THE WE PROJECT AND THE RELATED PROJECTS...... 1

TABLE 2-1 SUMMARY OF THE PROJECT AREA...... 5

TABLE 2-2 SUMMARY OF AFFECTED POPULATION...... 5

TABLE 2-4 SUMMARY OF TEMPORARILY OCCUPIED STATE-OWNED LAND...... 7

TABLE 2-3 SUMMARY OF PERMANENTLY ACQUIRED COLLECTIVE LAND...... 8

TABLE 2-5 SUMMARY OF TEMPORARILY OCCUPIED COLLECTIVE LAND...... 8

TABLE 2-6 SUMMARY OF PERMANENTLY OCCUPIED STATE-OWNED LAND...... 9

TABLE 2-7 SUMMARY OF DEMOLISHED RURAL RESIDENTIAL HOUSES...... 9

TABLE 2-8 SUMMARY OF DEMOLISHED URBAN RESIDENTIAL HOUSES...... 10

TABLE 2-9 SUMMARY OF AFFECTED ENTITIES...... 12

TABLE 2-10 SUMMARY OF AFFECTED ATTACHMENTS...... 14

TABLE 2-11 SUMMARY OF AFFECTED VULNERABLE GROUPS...... 14

TABLE 3-1 KEY ECONOMIC INDICATORS OF AFFECTED CITY / DISTRICT...... 16

TABLE 3-2 SOCIOECONOMIC PROFILE OF AFFECTED VILLAGES...... 17

TABLE 3-3 SOCIOECONOMIC PROFILE OF AFFECTED VILLAGES...... 18

TABLE 3-4 ANNUAL INCOME AND EXPENDITURE OF SAMPLE HOUSEHOLDS...... 19

TABLE 3-5 AGE STRUCTURE AND EDUCATIONAL LEVEL DISTRIBUTION OF SAMPLE HOUSEHOLDS

AFFECTED BY HD...... 20

TABLE 3-6 HOUSING CONDITIONS OF SAMPLE HOUSEHOLDS AFFECTED BY LA...... 20

v TABLE 3-7 AGE STRUCTURE AND EDUCATIONAL LEVEL DISTRIBUTION OF SAMPLE HOUSEHOLDS

AFFECTED BY HD...... 21

TABLE 3-8 HOUSING CONDITIONS OF SAMPLE HOUSEHOLDS AFFECTED BY LA...... 21

TABLE 3-9 SUMMARY OF MINORITY POPULATION IN THE PROJECT AREA...... 22

TABLE 4-1 SUMMARY OF APPLICABLE POLICIES...... 24

TABLE 5-1 COMPENSATION RATES FOR COLLECTIVE LAND ACQUISITION...... 41

TABLE 5-2 COMPENSATION RATES FOR TEMPORARY LAND OCCUPATION...... 42

TABLE 5-3 COMPENSATION RATES FOR RESIDENTIAL HOUSE DEMOLITION...... 42

TABLE 5-4 COMPENSATION RATES FOR DEMOLITION OF NON-RESIDENTIAL PROPERTIES...... 43

TABLE 5-5 COMPENSATION RATES FOR GROUND ATTACHMENTS...... 43

TABLE 5-6 RATES OF OTHER COSTS...... 43

TABLE 6-1 SUMMARY OF ACQUIRED CULTIVATED LAND...... 46

TABLE 6-2 LAND LOSS RATE ANALYSIS...... 46

TABLE 6-3 HOUSEHOLDS AFFECTED SERIOUSLY BY LA...... 46

TABLE 6-4 SUMMARY OF INCOME LOSSES OF APS 1...... 47

TABLE 6-5 SUMMARY OF INCOME LOSSES OF APS 2...... 47

TABLE 6-6 LOSS RATE OF PER CAPITA INCOME OF FARMERS...... 47

TABLE 6-7 SUMMARY OF RESETTLEMENT MODES...... 48

TABLE 6-8 EMPLOYMENT TRAINING PROGRAM...... 49

TABLE 6-9 SUMMARY OF RESETTLEMENT COMMUNITIES...... 53

TABLE 7-1 FULL-TIME STAFF OF RESETTLEMENT AGENCIES...... 60

TABLE 7-2 OVERALL RESETTLEMENT TRAINING PROGRAM...... 60

TABLE 8-1 RESETTLEMENT BUDGET...... 61

TABLE 8-2 ANNUAL INVESTMENT PLAN...... 63

TABLE 9-1 PUBLIC PARTICIPATION PROCESS OF APS...... 67

TABLE 9-2 INFORMATION DISCLOSURE SCHEDULE...... 68

TABLE 9-3 REGISTRATION FORM OF GRIEVANCES AND APPEALS...... 70

TABLE 10-1 RESETTLEMENT SCHEDULE...... 71

List of Figures FIGURE 2-1 COLLECTIVE LAND TO BE ACQUIRED...... 6 FIGURE 2-2 RURAL RESIDENTIAL HOUSES TO BE DEMOLISHED...... 10 FIGURE 3-1 AGE STRUCTURE OF SAMPLE POPULATION...... 18 FIGURE 3-2 EDUCATIONAL LEVEL DISTRIBUTION OF SAMPLE POPULATION...... 19 FIGURE 7-1 RESETTLEMENT ORGANIZATIONAL STRUCTURE OF THE WE PROJECT...... 57 FIGURE 7-2 RESETTLEMENT ORGANIZATIONAL STRUCTURE OF THE HONGSHUI RIVER PROJECT...... 58 FIGURE 8-1 DISBURSEMENT PROCESS OF RESETTLEMENT FUNDS...... 64 FIGURE 8-2 DISBURSEMENT PROCESS OF RESETTLEMENT FUNDS...... 65

vi ABBREVIATIONS

AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion FPDO - Laibin Municipal Water Resources Bureau HD - House Demolition LA - Land Acquisition Laibin Guizhong Water Town Development & LGWTDI - Investment Co., Ltd. LLRB - Laibin Municipal Land and Resources Bureau PMO - Laibin Project Management Office M&E - Monitoring and Evaluation PRC - People’s Republic of China RAP - Resettlement Action Plan RIB - Resettlement Information Booklet WWTP - Wastewater Treatment Plant

Currency unit = Yuan (RMB) 1.00 yuan = $0.15 1 hectare = 15 mu

I 1 Overview of the WE Project

1.1 Background

Laibin City is located in central Guangxi Zhuang Autonomous Region (Guangxi), and governs one city and four counties. In 2010, the city’s resident population was 2.6 million, including an urban population of 270,000. No effective flood protection system has been established for the main urban area of Laibin City, and floods are frequent, affecting economic and social development, and people’s work and life greatly. The flood bank circle for the main urban area has not been completed, and some dykes on the south and north of the Hongshui River, and on the east of the Beizhi River are insufficient to resist floods every 10 years; no flood barrier is built at urban river mouths, such as the Caoxie Ditch and Municipal Canal; the existing sewer network in the old town was built in the 1980s, featuring irrational layout, low standard and mixed effluence, so that it is far from enough for urban development, and its resistance to floods and inland inundations is very weak. Since Laibin became a city 10 years ago, frequent floods have become a fatal hazard to the development of the urban area, and inland inundation is very likely to occur during heavy rains. With the development of the city’s economy, floods will result in increasingly severe losses, making it an urgent task to protect the urban area from floods and inundations. In view of this, the Laibin Municipal Government has applied for a loan with the World Bank for urban water environment management. See Appendix 1 for the schematic map.

1.2 Scope of Construction and Resettlement Impacts

1.2.1 World Bank-financed Project

The Flood and Drainage Plan was used as the basis to identify highest- risk areas and in selecting and prioritizing the infrastructure investments in flood protection in the City. Non-structural and cost-effective natural water defense options were integrated in the design of the Project to further reduce risks and vulnerabilities of residents. The scope of construction of the Guangxi Laibin Water Environment Project (hereinafter, the “WE Project”) is as follows: Component 1: River Flood Risk Reduction. Component 1 is focused on reducing the vulnerability of people in the existing urban area to floods from Hongshui River and its tributaries, the Beizhijiang and Longdong Rivers. The first component is divided into Sub-Components 1.1, 1.2, and 1.3. Sub-Component 1.1. Hongshui River Flood Management. Flood risk reduction along the northern bank of the river, including (1) flood protection infrastructure (1 to 3m retention wall) along 1,320m of the northern bank and punctual investments to rehabilitate about 1.2km of the natural embankment between Shizheng and Caoxiegou Canal with grouted stone revetments and vegetative cover; and (2) flood protection infrastructure (1to 3m retention wall) along 1.5km of the northern bank and punctual investments to rehabilitate about 1,460m of the natural embankment between Xiangyang Road and the Railway Bridge. Subcomponent 1.2. Beizhijiang River Flood Management. Construction and strengthening of 2.2km of embankments and dikes along the eastern bank of the Beizhijiang River (section leading north from Shuiyun Canal) and the installation of a sluice gate at Shuiyun Canal.

1 Sub-Component 1.3. Longdong River Flood Management. Rehabilitation and/or construction of about 6.3km of embankments dikes along the northern bank of the Longdong River, (from Mengcun to Tianranqiao) and the installation of one sluice gate.

Component 2: Improving Urban Drainage.Component 2 will focus on improving drainage in selected areas of the city. The component will finance investments in expanding and separating the sewer and storm drainage networks. New pumping stations, sluice gates, control gates and rubber dams along the tributaries and canals feeding into the Hongshui River will further improve the flow of rainwater out of the urban area, while also enhancing river flood protection. The component will also pilot innovative approaches to improve natural drainage and reduce urban runoff by increasing vegetation cover along roadways, experimenting with more porous road surfaces, and rehabilitating the Caoxiegou Canal and embankments. Subcomponent 2.1: Caoxiegou Canal Rehabilitation. This subcomponent includes the rehabilitation of about 2.2km of the Caoxiegou Canal that crosses the old city area, currently serving as a major natural drainage, to improve the canal’s drainage capacity and ecological service value while preventing further encroachment of adjacent lands. Specific investments include the clean-up and de-silting of the canal, natural embankment rehabilitation and strengthening with grouted stone revetments, re-vegetation of embankments with locally-growing tree species, ecological restoration and re-vegetation of the embankments, and the construction of a regulating gate and two rubber dams. Subcomponent 2.2: Sewage and Storm Drain Network in Urban Areas. Specific investments include the construction of sewage and drainage pipelines, the separation of storm drains and sewers. About 21km of sewage pipelines will be laid in the old downtown area that lead to the existing WWTP, reducing the volume of untreated wastewater that is directly discharged into the City’s waterways and indirectly benefiting surface water quality. Expansion of the sewer network will include construction of a new sewer main, Line B, which will follow Weilin Avenue and Binhe Road and feed into the WWTP. About 26km of storm drainage pipelines will be laid, along with four new drain outlets to improve the flow of rainwater out of the city. Interception points will be built to divert wastewater to the sewer mains and prevent it from entering the storm drain network during low-flow periods in the dry season. Subcomponent 2.3: Pumping Stations and Sluice Gates. Six drainage pumping stations and sluice gates will be constructed in the existing urban area. The pumping stations will be located at Shuiyun Canal (capacity of 13.6 m3/s), Modong Canal (capacity of 18 m3/s), Shizheng Canal (capacity of 18.3 m3/s), Caoxiegou Canal (capacity of 30.8 m3/s), Xiangyang Road (capacity of 11.7 m3/s), and Longdong River (capacity of 10.3 m3/s). In addition, the Project includes the installation of four sluice gates along the Laibin City section of the Hongshui River at the mouths of four canals: (i) Modong Canal, (ii) Shizheng Canal, (iii) Caoxiegou Canal, and (iv) Xiangyang Road. Sluice gates will also be installed at the Shuiyun Canal pumping station and the Longdong River pumping station. Control gates will be built along the Laihua and the Caixiegou Canals. Apart from improving storm water drainage out of the urban area, construction of the sluice gates, control gates, and rubber dams will also help protect against the backflow of floodwaters from the Hongshui River up the canals and tributaries into parts of the City center. During the dry season, the control gates and rubber dams will improve water

2 retention in the City lakes and canals and provide increased environmental amenities. Subcomponent 2.4: Street Drainage and Maintenance. The Project will also rehabilitate and pilot Low Impact Development (LID) drainage systems along two urban roads facing major problems with water logging and traffic, namely: 1.4km of Heshan Road, from Xinxing Road to Dongan Road, and 0.7km of Xinxing Road, between Weilin Avenue and Heshan Road.Typical LID features, such as increased vegetation covers, vegetative & bio-retention swales, permeable pavers (for parking and driveways), and water re-use, could be incorporated into the storm-water management and rainwater harvesting system. Besides sustainable urban drainage systems, the Project will also ensure traffic and road designs include traffic safety features, improved non-motorized and public transport facilities, and traffic calming around the school located along Henshan Road. Component 3: Technical Assistance and Capacity Building.Technical assistance and capacity building activities will be directly linked to the overall objectives of the Project and the infrastructure investments proposed under components 1 and 2. The aim is at improving overall integrated flood risk management capacity and improving overall capital investment planning and asset management. The Project will also assist Laibin City in developing programs in sustaining public infrastructure assets such as water treatment facilities, sewer lines and urban roads. The assistance will focus on maintenance, rehabilitation, and replacement with the goal to ensure proper operation and extend the life of infrastructure assets to the benefit of Laibin City and its people. Subcomponent 3.1. Floor Risk Management. To support the structural investment on flood control and further reduce flood risks, the Project will support the city in developing flood maps, basic modeling capacity and early warning systems.

Subcomponent 3.2. Capital Investment Planning and Asset Management. Laibin City is rapidly expanding infrastructure coverage, which needs to be properly planned and maintained. The city officials agreed that the Project will include assistance and training for asset management and capital replenishment, with the focus to improve operation and maintenance of assets and training of staff of selected departments/agencies to better budget for and manage asset investments and their maintenance. Component 4: Project Management and Supervision.This component includes training and services to support the city with: (i) project management, including financial management, procurement, contract supervision and reporting; (ii) outcome monitoring and evaluation; (iii) construction supervision; and (iv) supervision of the implementation of environmental management and resettlement action plans. See Error: Reference source not found.

3 Table 1-1 Resettlement Impacts of the WE Project Land use Demolition area (m2) Permanent land Temporary land Range of LA / HD Type Rural Urban of use (mu) use (mu) Work Scope of construction Remarks works Type State- Collecti State- Collectiv Non- Non- Sub- of Residential Residential Village owned ve owned e residential residential district impac t 1.Riv 1.1Ho Flood risk reduction 28.8 0 47.1 0 0 0 0 0 / / / er ngsh along the northern bank Flood ui of the river, including (1) Risk River flood protection Redu Flood infrastructure (1 to 3m ction Mana retention wall) along geme 1,320m of the northern nt bank and punctual investments to rehabilitate about 1.2km of the natural embankment between Shizheng and Caoxiegou Canal with grouted stone revetments and vegetative cover; and (2) flood protection infrastructure (1to 3m retention wall) along 1.5km of the northern bank and punctual investments to rehabilitate about 1,460m of the natural embankment between

1 Land use Demolition area (m2) Permanent land Temporary land Range of LA / HD Type Rural Urban of use (mu) use (mu) Work Scope of construction Remarks works Type State- Collecti State- Collectiv Non- Non- Sub- of Residential Residential Village owned ve owned e residential residential district impac t Xiangyang Road and the Railway Bridge. Construction and 1.2B strengthening of 2.2km eizhiji of embankments and ang dikes along the eastern Qiaogo River bank of the Beizhijiang 0 0 0 22.5 0 0 0 0 ng Caicun / Flood River (section leading Xiang Mana north from Shuiyun geme Canal) and the nt installation of a sluice gate at Shuiyun Canal. Rehabilitation and/or 1.3Lo construction of about ngdo 6.3km of embankments ng Changling dikes along the northern Hexi River , LA & bank of the Longdong 11.4 237.8 0 87.02 0 7172.3 0 0 Sub- Flood Mengcun, HD River, (from Mengcun to district Mana Qiaogui Tianranqiao) and the geme installation of one sluice nt gate.

2 Land use Demolition area (m2) Permanent land Temporary land Range of LA / HD Type Rural Urban of use (mu) use (mu) Work Scope of construction Remarks works Type State- Collecti State- Collectiv Non- Non- Sub- of Residential Residential Village owned ve owned e residential residential district impac t 2.Imp rovin g Chengb 2.1Caoxiegou Canal Shacun, Urba 54.58 26.73 22.5 12.95 0 32101 1130 6000 ei Sub- HD Rehabilitation Sangu n district Drain age

The occupied 2.2Sewage and Storm Drain / / / 0 0 0 0 0 0 0 0 land Network in Urban Areas involving no resettlement.

2.3Pumping Stations and 0 0 0 0 0 0 0 0 / / / Sluice Gates

3 Land use Demolition area (m2) Permanent land Temporary land Range of LA / HD Type Rural Urban of use (mu) use (mu) Work Scope of construction Remarks works Type State- Collecti State- Collectiv Non- Non- Sub- of Residential Residential Village owned ve owned e residential residential district impac t

The occupied 2.4Street Drainage and / / / 0 0 0 0 0 0 0 0 land Maintenance involving no resettlement.

3.Tec / / hnical 3.1Floor Risk Management 0 0 0 0 0 0 0 0 / Assis tance and Capa 3.2Capital Investment city Planning and Asset 0 0 0 0 0 0 0 0 / / / Buildi Management ng

4.Project Management and 0 0 0 0 0 0 0 0 / / / Supervision

Total 94.78 264.53 69.6 122.47 0 39273.3 1130 6000 0

4 LA and HD in the WE Project will affect 229 households with 839 persons, in which 359.31 mu of land will be occupied permanently (94.78 mu of state-owned land and 264.53 mu of collective land), 192.07 mu of land will be occupied temporarily (69.6 mu of state-owned land and 122.47 mu of collective land), and rural residential houses of 39,273.3 m2, urban residential houses of 6,000 m2 and urban non- residential properties of 1,130 m2 will be demolished.

1.2.2 Other Projects

Since the Laibin Middle Hongshui River Flood Bank Project (hereinafter, the “Hongshui River Project”), the North River Management Project in the Main Urban Area (Segment I of Binjiang North Road),the Laibin East WWTP Project (hereinafter, the “WWTP Project”), the Laibin Beizhi River(Shuiyun Canal south segment) Embankment Project and the Laibin Domestic Waste Landfill Project are connected directly to the WE Project in function or benefit, they have been identified as related projects. (1) Middle section of Hongshui River Project

The middle section of Hongshui River Project starts at the Xingbin District Shipping Administration Office and ends at Dongtang Group, in which ecological dykes of 800m, revetments of 800m, one drainage pumping station and one drainage sluice will be constructed along the left of the Hongshui River. The owner of this project is the Flood Protection and Drainage Office of the Laibin Municipal Water Resources Bureau (FPDO). This project will occupy 143.91 mu of state-owned land permanently, and have a total demolition area of 81,900.13 m2, including residential houses of 16,574.04 m2 and non-residential properties of 65,326.09 m2, affecting 60 urban households with 354 persons, and 670 employees.

（2）North River Management Project in the Main Urban Area (Segment I of Binjiang North Road)

The North River Management Project in the Main Urban Area starts from Xigualing and ends at the Xingbin District Shipping Administration Office, where a protected segment of 6.64km will be constructed, including flood banks of 4.79km, revetments of 6.19km, 3 flood drainage pumping stations and 6 flood drainage sluices. The owner is the Flood Protection and Drainage Office of the Laibin Municipal Water Resources Bureau (FPDO). This project involves no resettlement impact.

(3) WWTP Project

In the WWTP Project, a wastewater treatment plant (WWTP) with a daily treatment capacity of 50,000 m³, a supporting wastewater pumping station, 4 temporary wastewater pumping stations and a wastewater collection network of 43km will be constructed, with a gross investment of 155 million yuan. This project broke ground in August 2007 and was completed in May 2009. The owner of this project is LGWTDI. This project occupied 47.29 mu of land, all being state-owned land, whose right to use was owned by the Laibin Municipal Garden Administration Office; 136,000

1 scattered trees and 2 tombs were affected. As of March 2009, all resettlement activities of the WWTP Project had been completed. (4) Laibin Beizhi River(Shuiyun Canal south segment) Embankment Project

Laibin Beizhi River(Shuiyun Canal south segment) Embankment Project, including flood banks of 2.96km, and 3 flood drainage sluices. The owner is the Flood Protection and Drainage Office of the Laibin Municipal Water Resources Bureau (FPDO). This project involves no resettlement impact.

（5）Laibin Domestic Waste Landfill Project

During the construction of the WE Project, excavation and dredging spoil will be received by the Laibin Domestic Waste Landfill, which is located 1km east of Putian Village, Xingbin District, Laibin City, with a floor area of 123.5 mu. According to the survey, all LA, HD and resettlement activities of the Laibin Domestic Waste Landfill Project were completed in 2005. This RAP covers the WE Project and the Hongshui River Project, as shown in Error: Reference source not found.

2 Table 1-2 Resettlement Impacts of the WE Project and the Related Projects Impacts of LA and LA HD HD Permanent (mu) Temporary (mu) Rural (m2) Urban (m2) No. Project Remarks State- Non- Affected Affected State- Collective Collective Residential Residential Non- residential owned residential HHs population owned land land land houses houses properties land properties World Bank- 1 WE Project 94.78 264.53 69.6 122.47 39273.3 / 6000 1130 266 990 financed project LA, HD and resettlement activities are about to begin, and the temporarily occupied land is included in old town reconstruction; Hongshui River 2 143.91 / / / / / 16574.04 65326.09 60 1024 3 enterprises Project and 5 public institutions with 670 employees, and 354 urban residents will be affected. This project is included in this RAP. 3 North River / / / / / / / / / / / Management Project in the

1 Impacts of LA and LA HD HD Permanent (mu) Temporary (mu) Rural (m2) Urban (m2) No. Project Remarks State- Non- Affected Affected State- Collective Collective Residential Residential Non- residential owned residential HHs population owned land land land houses houses properties land properties Main Urban Area (Segment I of Binjiang North Road)

LA compensation and 4 WWTP Project 47.29 / / / / / / / / / resettlement activities were completed in March 2009. Laibin Beizhi / / / / LA, HD and River(Shuiyun resettlement Canal south 5 / / / / / / activities were segment) completed in Embankment June 2009. Project LA, HD and Laibin resettlement Domestic 6 activities were Waste Landfill completed in Project 2005. 6 Total 285.98 264.53 69.6 122.47 39273.3 0 22574.04 66456.09 326 2014

2 1.3 Measures to Reduce Resettlement Impacts The design agency and the project owner attach great importance to measures to reduce resettlement impacts. At the planning and design stage, in order to reduce the impact on the local society and economy, the design agency and the owner took the following measures: 1) At the project planning stage, local socioeconomic impacts will be taken into account, and taken as key factors for option comparison and selection; 2) The project design will be optimized to reduce the impact on local residents, and minimize excavation, backfilling, LA and HD. At the preparation stage, the design agency adjusted the route and boundary line of the Caoxie Ditch, avoiding the relocation of a group of villas and Modong Primary School, reducing demolition area by 13,000 m2. At the RAP preparation and implementation stage, when LA and HD is unavoidable, the following measures will be taken to reduce negative impacts: 1) Strengthen the collection of basic information, make an in-depth analysis of local socioeconomic situation and future development, and develop a feasible RAP based on local conditions to prevent those affected by the project from suffering losses; 2) Encourage public participation and accept public supervision; 3) Strengthen internal and external monitoring, establish an efficient and unobstructed feedback mechanism, and shorten the information processing cycle to ensure that all issues arising from implementation are solved timely.

1.4 Project Preparation and Progress (1) WE Project

An application for Bank lending for the WE Project was filed in 2010, and the Laibin Municipal Development and Reform Commission established the Leading Group of the WE Project in July 2011. LPMO is Laibin Municipal Development and Reform Commission. In 2008, the Research Institute of the Pearl River Water Resources Commission completed the proposal of the WE Project. In September 2011, the Bank mission identified the WE Project, and gave directions and suggestions on the scope, engineering, resettlement and environmental impact assessment of the WE Project, and the feasibility study, resettlement and environmental impact assessment of this project were started. As of December 2011, the first draft of the Feasibility Study Report of the WE Project had been completed. In August 2011, LGWTDI appointed Guangxi University of Finance and Economics, and Hohai University to conduct a DMS on the WE Project and prepare the Resettlement Action Plan (RAP) thereof. During August-November 2011 and May-July 2012, Guangxi University of Finance and Economics conducted data collection, DMS and door-to-door survey on the WE Project. On this basis, Hohai University has prepared and revised the RAP of the Guangxi Laibin Water Environment Project. (2) Hongshui River Project

The Hongshui River Project will be financed by domestic counterpart funds, the Feasibility Study Report is pending approval by the Ministry of Water Resources, and LA, HD and resettlement activities have not begun. During June-July 2012, Guangxi University of Finance and Economics conducted data collection, DMS and door-to- door survey on the Hongshui River Project; the Bank mission identified the Hongshui River Project in July 2012, and gave directions and suggestions on the scope,

3 engineering, resettlement and environmental impact assessment of the Hongshui River Project. （3）North River Management Project in the Main Urban Area (Segment I of Binjiang North Road)

The Bank mission identified the North River Management Project in the Main Urban Area (Segment I of Binjiang North Road) in July 2012, and gave directions and suggestions on the scope, engineering, resettlement and environmental impact assessment of the Hongshui River Project. This project involves no resettlement impact. (4) WWTP Project

As of March 2009, the WWTP Project had been completed. （5）Laibin Beizhi River(Shuiyun Canal south segment) Embankment Project The Bank mission identified the Laibin Beizhi River(Shuiyun Canal south segment) Embankment Project in July 2012, and gave directions and suggestions on the scope, engineering, resettlement and environmental impact assessment of the Hongshui River Project.This project involves no resettlement impact. （6）Laibin Domestic Waste Landfill Project

By 2005, all LA, HD and resettlement activities of the Laibin Domestic Waste Landfill Project had been completed. 2 Impacts of the WE Project This RAP analyzes the resettlement impacts and work of the Bank-financed WE Project and the Hongshui River Project financed by domestic counterpart funds.

2.1 Project Impact Survey

During August-November 2011, with the assistance of the design agency and the project owner, the task force conducted a 100% detailed measurement survey (DMS) on the WE Project, a sampling socioeconomic survey on 115 households affected by LA and HD (sampling rate 43.2%), 6 interviews with the statistics bureau, land and resources bureau, house demolition management office, social security bureau, development and reform commission, women’s federation, and ethnic and religious affairs bureau, 8 in-depth interviews with heads and party branch secretaries of affected villages, and 8 FGDs with representatives of the APs. During June and July 2012, the task force conducted a 100% DMS on the Hongshui River Project, a sampling socioeconomic survey on 16 households affected by LA and HD (sampling rate 26.7%), a 100% socioeconomic survey on the 3 enterprises and 4 public institutions affected by HD, 8 interviews with the statistics bureau, land and resources bureau, house demolition management office, social security bureau, development and reform commission, women’s federation, and ethnic and religious affairs bureau, and 6 FGDs with representatives of the APs and the affected entities.

2.2 Affected Area The WE Project will affect 5 villages in 4 sub-districts/townships of one district (Xingbin) in Laibin City, and the Hongshui River Project will affect one community in one town of one district (Xingbin) in Laibin City. See Error: Reference source not found. Table 2-3 Summary of the Project Area

4 Township / sub- Admin. Village / Natural Project City District Remarks district community village Chengbei Sub- Pingxi Community Shacun LA & HD district Gusan Community Gusan LA & HD WE Project Laibin Xingbin Hexi Sub-district Hexi Community Changling LA & HD (Bank financed) Liangjiang Town Mengcun Village LA Liangjiang Town Qiaogui Village LA Hongshui River Laibin Xingbin Laibin Town Zhenxi Community HD Project (related)

2.3 Impacts of the WE Project

The main types of impacts of the WE Project are: (1) land acquisition/occupation; (2) temporary land occupation; (3) demolition of rural residential houses; (4) demolition of urban residential houses; (5) demolition of non- residential properties; and (6) demolition of attachments. The main types of impacts of the Hongshui River Project are: (1) permanent occupation of state-owned land; (2) demolition of urban residential houses; (3) demolition of urban non-residential properties.

2.3.1 Summary of Affected Population

(1) WE Project

LA and HD in the WE Project will affect 229 households with 839 persons, in which 116 households with 420 persons will be affected by LA only, 23 households with 93 persons by HD only, and 90 households with 326 persons by both LA and HD. In addition, temporary land occupation in the WE Project will affect 37 households with 151 persons. In sum, the WE Project will affect 266 households with 990 persons in total.

(2) Hongshui River Project

HD in the Hongshui River Project will affect 1,024 persons, including 60 urban households with 354 persons, 3 enterprises with 558 employees and 4 public institutions with 112 employees. See Error: Reference source not found.

Table 2-4 Summary of Affected Population Project Type of impact Unit Qty. HH 116 LA only People 420 HH 23 HD only People 93 LA and HD HH 90 WE Both La and HD Project People 326 (Bank HH 229 Subtotal financed) People 839 Temporary land HH 37 Subtotal occupation People 151 HH 266 Total People 990 Hongshu HH 60 Demolished residential houses i River People 354 Project Affected Laibin Dongtang Guibao Co., Ltd. HH / (related) enterprises People 420

5 Project Type of impact Unit Qty. HH / Laibin Shipping Company People 130 HH / Sand yard of Laibin Shipping Company People 8 HH / Laibin Shipping Office People 15 HH / Laibin Maritime Office Affected public People 6 institutions Xingbin District Shipping Administration HH / Office and dormitory area People 45 Dormitory area of the Liuzhou Channel HH / Administration Bureau Laibin Branch People 46 Temporary land HH Not involving temporary Subtotal occupation People land occupation HH 60 Total People 1024

2.3.2 Collective Land Acquisition

(1) WE Project

264.53 mu of collective land will be acquired permanently for the WE Project, involving 5 villages in Chengbei Sub-district, Hexi Sub-district and Liangjiang Town in Laibin City, affecting 206 households with 746 persons, but no basic farmland will be occupied. The acquired collective land includes 37.48 mu of irrigated land, accounting for 14.17%; 63.19 mu of non-irrigated land, accounting for 70.79%; 24.87 mu of garden land, accounting for 9.40%; 21 mu of woodland, accounting for 7.94%; and 35.43 mu of housing land, accounting for 13.39%. (2) Hongshui River Project

The Hongshui River Project will be implemented in conjunction with old town reconstruction, and LA and HD will be conducted on state-owned land, while no collective land will be acquired. See Error: Reference source not found.

Figure 2-1 Collective Land to be Acquired

6 2.3.3 Temporary Land Occupation

(1) WE Project

Temporarily occupied land refers to land borrowed temporarily during construction, including land occupied by sand and stone yards, borrow areas, mixing plants, spoil grounds, and living and construction facilities. In the WE Project, 192.07 mu of land will be occupied temporarily, affecting 37 households with 151 persons, including 69.6 mu of temporarily occupied state-owned land, affecting no one, and 122.47 mu of temporarily occupied collective land, affecting 37 households with 151 persons. The average period of land occupation in the WE Project is two years. (2) Hongshui River Project

The Hongshui River Project will not involve temporary land occupation. See Table 2-5 and Table 2-6 Summary of Permanently Acquired Collective Land.

Table 2-5 Summary of Temporarily Occupied State-owned Land Amount of LA (mu) Project Component District Township / sub-district Unused land Caoxie Ditch Xingbin Chengbei Sub-district 22.5 WE Project Hongshui River Xingbin Chengbei Sub-district 47.1 Total 69.6

2.3.4 Permanent Occupation of State-owned Land

(1) WE Project

The WE Project will occupy 94.78 mu of state-owned land permanently, including 48.48 mu of river flat, accounting for 51.15%, 11.4 mu of water surface, accounting for 12.03%, 1.7 mu of industrial land, accounting for 1.79%, 4.64 mu of housing land, accounting for 4.64%, and 28.8 mu of unused land, accounting for 30.39%. (2) Hongshui River Project

The Hongshui River Project will permanently occupy 143.91 mu of state-owned land, including 9.81 mu of housing land and 134.1 mu of land for entities. See Table 2- 6 Summary of Permanently Acquired Collective Land.

7 Table 2-6 Summary of Permanently Acquired Collective Land Affected pop Amount of LA (mu) ulation Proj Compone Distri Township / Admin. Village / Natural Non- ect nt ct sub-district community village Irrigated Garden Woodl Grassl Housing Rural Unused Subt Populati irrigated HHs land land and and land road land otal on land Pingxi Shacun 0 0 0 0 0 11.22 0 0 11.22 31 108 Caoxie Xing Chengbei Community Ditch bin Sub-district Gusan Gusan 0 0 0 0 0 15.51 0 0 15.51 39 141 Community Hexi Sub- Changlin 129.5 Hexi Community 0 0 24.87 21 43.29 8.7 5.87 25.8 104 371 WE district g 3 Proj Longdong Xing Liangjiang Mengcun Village 0 7.6 0 0 0 0 0 0 7.6 3 14 ect River bin Town Liangjiang 100.6 Qiaogui Village 37.48 63.19 0 0 0 0 0 0 29 112 Town 7 264.5 Total 37.48 70.79 24.87 21 43.29 35.43 5.87 25.8 206 746 3 Percent (%) 14.17 26.76 9.4 7.94 16.36 13.39 2.22 9.75 100 / / Table 2-7 Summary of Temporarily Occupied Collective Land Affected popul Temporarily occupied land (mu) Proj Componen Distri Township / Admin. Village / Natural ation ect t ct sub-district community village Irrigated Non- Grassl Rural Water Unused Subto Populati HHs land irrigated land and road surface land tal on Caoxie Xing Chengbei Sub- Pingxi Community Shacun 0 2.7 0 2.25 0 0 4.95 2 8 Ditch bin district Gusan Community Gusan 0 8 0 0 0 0 8 3 13 Hexi Sub- Changlin Hexi Community 0 0 0 0 10.46 47.88 58.34 0 0 district g Longdong Xing Liangjiang WE Mengcun Village 0 0.08 5.1 0 0 0 5.18 2 7 Proj River bin Town Liangjiang ect Qiaogui Village 2.25 21.25 0 0 0 0 23.5 16 61 Town Beizhi Xing Qiaogong Caicun Village 0 22.5 0 0 0 0 22.5 14 62 River bin Xiang 122.4 Total 2.25 54.53 5.1 2.25 10.46 47.88 37 151 7

8 Table 2-8 Summary of Permanently Occupied State-owned Land Land type (mu) Affected population Township / sub- Project Component District River Water Unused Industrial Land for Housing district Subtotal HHs Population flat surface land land entities land Caoxie Chengbei Sub- Xingbin 48.48 / / 1.7 / 4.4 54.58 20 80 Ditch district Longdong Hexi Sub- Xingbin / 11.4 / / / / 11.4 / / River district WE Project Hongshui Chengbei Sub- Xingbin / / 28.8 / / / 28.8 / / River district Subtotal 48.48 11.4 28.8 1.7 4.4 94.78 20 80 Percent (%) 51.15 12.03 30.39 1.79 4.64 100 / / Hongshui / Xingbin Laibin Town / / / / 134.1 9.81 143.91 60 1024 River Subtotal / / / / 134.1 9.81 143.91 60 1024 Project Percent(%) / / / / 93.18 6.82 100 / / Table 2-9 Summary of Demolished Rural Residential Houses Demolition area (m2) Affected population Township / sub- Admin. Village / Natural Project Component District Masonry Masonry Earth district community village Brick-tile Simple Subtotal HHs Population concrete timber timber Pingxi Shacun 12960 0 0 0 1000 13960 31 108 Caoxie Chengbei Sub- Community Xingbin Ditch district Gusan Gusan 3541 3045 9379 0 2176 18141 39 141 WE Community Project Longdong Xingbin Hexi Sub-district Hexi Community Changling 6718.3 263.1 0 190.9 0 7172.3 23 90 River Total 23219.3 3308.1 9379 190.9 3176 39273.3 93 339 Percent(%) 59.12 8.42 23.88 0.49 8.09 100 / /

9 2.3.5 Demolition of Rural Residential Houses

(1) WE Project

The demolition of rural residential houses in the WE Project will affect 3 villages in Chengbei and Hexi Sub-districts, Xingbin District, with rural residential houses of 39,273.3 m2 demolished, including 23,219.3 m2 in masonry concrete structure (59.12%), 3,308.1 m2 in masonry timber structure (8.42%), 9,379 m2 in brick-tile structure (23.88%), 190.9 m2 in earth timber structure (0.49%) and 3,176 m2 (8.09%) in simple structure, affecting 93 households with 339 persons. (2) Hongshui River Project

The Hongshui River Project will be constructed on state-owned land, and will not involve the demolition of rural residential houses. See Table 2-6 Summary of Permanently Acquired Collective Land.

Figure 2-2 Rural Residential Houses to be Demolished

2.3.6 Demolition of Urban Residential Houses

(1) WE Project

An independent building in Chengbei Sub-district, Xingbin District will be demolished for the WE Project, with a demolition area of 6,000 m2, in masonry concrete structure, affecting 20 households with 80 persons. (2) Hongshui River Project

The demolition of urban residential houses in the Hongshui River Project will affect 60 households with 354 persons in Zhenxi Community, Laibin Town, Xingbin District, with a demolition area of 16,574.04 m2, including 14,388.73 m2 in masonry concrete structure and 2,185.31 m2 in masonry timber structure. See Table 2-10 Summary of Demolished Urban Residential Houses. Table 2-10 Summary of Demolished Urban Residential Houses Affected popul Demolition area Compone Distri Township / sub- ation Project nt ct district Masonry Masonry timber Populati HHs concrete (m2) (m2) on WE Caoxie Xingb Chengbei Sub- 6000 / 20 80 Project Ditch in district Hongs / Xingb Laibin Town 14388.73 2185.31 60 354 hui in

10 River Project

2.3.7 Demolition of Properties of Entities

(1) WE Project

One enterprise (Xingbin Bean Product Factory) will be relocated wholly for the WE Project, with a demolition area of 1,130 m2, in simple structure. This factory has gone bankrupt, and the properties to be demolished are dilapidated and have been abandoned. (2) Hongshui River Project

In Hongshui River Project, 3 enterprises will be relocated wholly, which are Laibin Dongtang Guibao Co., Ltd., Laibin Shipping Company and its sand yard, all in masonry concrete structure, with a total demolition area of 52,196 m2; 4 public institutions will be relocated wholly, including 12,365.25 m2 in masonry concrete structure, 214.84 m2 in masonry timber structure and 550 m2 in brick-tile structure. The total demolition area of this project is 65,326.09 m2, and 670 employees will be affected. See .

11 Table 2-11 Summary of Affected Entities Demolition Affected Degree Project Component Entity Nature Structure Remarks area (m2) population of impact This factory is bankrupt, and the WE Caoxie Full Bean product factory Enterprise 1130 Simple 0 properties to be demolished are Project Ditch demolition dilapidated. Hongshui In 2009, this enterprise River acquired 415.62 mu of land Project in Zhenglong Xiang, Xingbin District on a compensated basis. Currently, all Laibin Dongtang Full / Enterprise 49700 Masonry concrete 420 production facilities have Guibao Co., Ltd. demolition been relocated to Zhenglong Xiang, and only its dormitories remain in the project area.

Laibin Shipping Full It is not operating, and its income / Enterprise 2496 Masonry concrete 130 Company demolition is from leases. Sand yard of Laibin Full / Enterprise / Masonry concrete 8 Shipping Company demolition Public Full / Laibin Shipping Office 1490.5 Masonry concrete 15 550 m2 in brick-tile structure institution demolition Public Full / Laibin Maritime Office 1800.42 Masonry concrete 6 institution demolition Xingbin District Shipping Public Full 214.84 m2 in masonry timber / 7079.83 Masonry concrete, masonry timber 45 Administration Office institution demolition structure and dormitory area / Dormitory area of the Public 2759.34 Masonry concrete 46 Full Its office has been relocated, and Liuzhou Channel institution demolition only its dormitory area will be Administration Bureau affected. Laibin Branch

12 Demolition Affected Degree Project Component Entity Nature Structure Remarks area (m2) population of impact Subtotal 65326.09 670

13 2.3.8 Demolition of Attachments

(1) WE Project

Some attachments will be demolished for the WE Project, including 4,018 fruit trees, 4,415 timber trees, 29 telegraph poles,and among which will affect two telegraph poles, which have been relocated and are operating properly.. (2) Hongshui River Project

The Hongshui River Project will affect some trees beside the Hongshui River, and these trees are owned by the Laibin Municipal Forestry Bureau. See Table 2-12 Summary of Affected Attachments. Table 2-12 Summary of Affected Attachments Project Type Unit Qty. loquat / 2518 Fruit trees Chinese chestnut / 1500 WE Project Timber trees / 4415 Telegraph poles / 29

2.3.9 Vulnerable Groups

In the affected population of the WE Project, 8 households with 14 persons fall into vulnerable groupsiii, in which 3 households with 8 persons receive minimum living security, and there are 5 five-guarantee households with 6 persons. The Hongshui River Project involves no vulnerable group. See Table 2-13. Table 2-13 Summary of Affected Vulnerable Groups

Proje Sub- House Village People Remarks ct district header Moxinxiang 4 Households receiving minimum living security Gongmingku Households receiving minimum 2 Gusan n living security Lianbinqiu 1 Five-guarantee households Liangjijie 2 Five-guarantee households Chengb WE Moyanfei 1 Five-guarantee households Proje ei c Liangqihan 2 Households receiving minimum living security Liangzhuan 1 Five-guarantee households Shacun gxin Liangxinfe 1 Five-guarantee households n Total 14 /

iii For elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor, a rural production cooperative would provide production and living assistance, including daily supplies, education for the young and burial for the elderly.

14 3 Socioeconomic Profile of the Project Area The WE Project will involve 5 villages/communities in Xingbin District, Laibin City, Guangxi. The Hongshui River Project will involve one community in Laibin Town, Xingbin District, Laibin City, Guangxi.

3.1 Socioeconomic Profile of the Affected City and District

Laibin City—Laibin City is located in central Guangxi and the lower Hongshui River, featuring moderate climate, ample sunshine and fertile land. It governs Xingbin District, Xiangzhou County, Wuxuan County, Jinxiu Yao Autonomous County, Xincheng County and Taishan City, with a land area of 13,400 km2 and an urban area of 73.96 km2 (built-up area 20 km2), In 2010, the city’s cultivated area was 228,400 hectares and population 2.5 millioniv, including a resident population of 2,099,700 and a labor force of 1,427,800. In its resident population, the Han population is 486,800, accounting for 23.18%, and the minority population is 1,612,900, accounting for 76.82% and composed mainly of Zhuang people. In 2010, the city’s GDP was 38.524 billion yuan, in which the proportions of primary, secondary and tertiary industries were 25.44:45.47:29.09. In 2010, the city’s per capita GDP was 18,347.38 yuan, per capita disposable income of urban residents 17,334 yuan and per capita net income of rural residents 4,659 yuan. See Error: Reference source not found. Xingbin District—Xingbin District has a land area of 4,364.18 km2, including a cultivated area of 160,000 hectares. The district governs 20 townships and 3 sub- districts. There are 12 ethnic minorities in the district, including Zhuang, Yao and Miao. The district has a resident population of 910,200, including 471,300 males and 438,900 females, a nonagricultural population of 128,300 and a labor force of 618,900. In 2010, the district’s GDP was 20.286 billion yuan, in which the proportions of primary, secondary and tertiary industries were 20.2:49.4:30.4. In 2010, the district’s per capita GDP was 22,287.41 yuan, per capita disposable income of urban residents 17,911 yuan and per capita net income of rural residents 5,246 yuan. See Table 3-14. Table 3-14 Key Economic Indicators of Affected City / District Indicator Laibin City Xingbin District Population (0,000) 209.97 91.02 Male (0,000) 108.72 47.13 Population Female (0,000) 101.25 43.89 Nonagricultural population (0,000) 29.61 12.83 Labor force (0,000) 142.78 61.89 Cultivated land Cultivated area (0,000 ha) 22.84 16.00 GDP (00m yuan) 385.24 202.86 Primary Output value (00m yuan) 40.98 41.32 industries Percent (%) 20.20 21.91 Secondary Output value (00m yuan) 100.21 86.87 Output value industries Percent (%) 49.40 46.06 Tertiary Output value (00m yuan) 61.67 60.41 industries Percent (%) 30.40 32.03 Per capita GDP (yuan) 18347.38 22287.41 Per capita disposable income of urban 17334 17911 residents (yuan/year) Income Per capita net income of rural residents 4659 5246 (yuan/year)

iv http://www.gxtj.gov.cn/show.asp?typid=91&id=8752

15 3.2 Socioeconomic Profile of the Affected Villages/Communities (1) WE Project

1. Gusan and Shacun Villages

Gusan and Shacun Villages are affiliated to Chengbei Sub-district, Xingbin District. Gusan Village has 800 households with 3,019 persons, including 1,449 females, accounting for 48.00%, a cultivated area of 320 mu, 0.11 mu per capita, and per capita net income of 4,500 yuan/year. Shacun Village has 721 households with 2,810 persons, including 1,293 females (46.01%), a cultivated area of 2,018 mu, 0.72 mu per capita, and per capita net income of 4,300 yuan/year. Gusan and Shacun Villages are similar in economic status and income sources. The main income source of these two villages is outside employment, and few villagers live on crop cultivation and stockbreeding. Due to the small cultivated area, crop cultivation accounts for a low proportion in gross income, especially in Gusan Village. 2. Changling Village

Changling Village is affiliated to Hexi Sub-district, Xingbin District, and has 1,212 households with 4,589 persons, including 2,405 females, a cultivated area of 454 mu, 0.1 mu per capita only, and per capita net income of rural residents 5,032 yuan. Most of this village’s cultivated land has been acquired by the government for construction projects in recent years, and most villagers’ income is from outside employment and doing business. 3. Mengcun Village

Mengcun Village is affiliated to Mengcun Xiang, Xingbin District, and has 386 households with 1,553 persons, including 692 females, a cultivated area of 2,238 mu, 1.44 mu per capita, and per capita net income of rural residents 6700 yuan. 4. Qiaogui Village

Qiaogui Village is affiliated to Liangjiang Town, Xingbin District, and has 58 households with 205 persons, including 97 females, a cultivated area of 250 mu, 1.22 mu per capita, and per capita net income of rural residents 6500 yuan. Most of this village’s cultivated land has been acquired by the government for construction projects in recent years, and most villagers’ income is from outside employment and doing business. Table 3-15 Socioeconomic Profile of Affected Villages Per capita Per capita Populati Labor Cultivated net Project Village HHs Females cultivated force area (mu) income on area (mu) (yuan) Gusan 800 3019 1449 2022 320 0.11 4500 Shacun 721 2810 1293 1910 2018 0.72 4300 WE Changling 1212 4589 2405 1875 454 0.10 5032 Project Mengcun 386 1553 692 750 2238 1.44 6700 Qiaogui 58 205 97 110 250 1.22 6500 Total 3177 12176 5936 10618 6392 0.52 / Source: village reports and interviews

16 1. Zhenxi Community

Zhenxi Community is affiliated to Laibin Town, Xingbin District and has 1,190 households with 4,861 persons, including 2,187 females. In 2010, the community’s GDP was 30.013 million yuan, 6,174.25 yuan per capita. See Table 3-16Error: Reference source not found.

Table 3-16 Socioeconomic Profile of Affected Villages Township / Where, Per capita net Project HHs Population Labor force sub-district females income (yuan) Hongshui Laibin River 1190 4861 2187 4150 6174.25 Town Project Source: township statistical reports

3.2.1 Households Affected by LA

(1) WE Project

In November 2011, LGWTDI and the task force conducted a sampling survey on 85 households affected by LA with 414 persons and 30 households affected by HD with 146 persons. 1. Age distribution

In the 85 sample households with 414 persons, 22 are aged below 6 years, accounting for 5.36%; 15 aged 6-16 years, accounting for 3.57%; 274 aged 16-60 years, accounting for 66.09%; and 103 aged above 60 years, accounting for 24.98%. See Error: Reference source not foundError: Reference source not found.

Figure 3-3 Age Structure of Sample Population

2. Educational level

In the 85 sample households with 414 persons, 54 persons have received below primary school education, accounting for 13.14%; 102 have received primary school education, accounting for 24.69%; 181 have received junior high school education, accounting for 43.72%; 65 have received senior high school education, accounting for 15.60%; and 12 have received junior college or above education, accounting for 2.85%. See Error: Reference source not foundError: Reference source not found.

17 Figure 3-4 Educational Level Distribution of Sample Population

3. Land resources

In the 85 sample households, average contracted land area is 1.53 mu per household or 0.31 mu per capita, and per capita contracted land area ranges from 0.92 mu to 0.1 mu. 4. Household income and expenditure

In the 85 sample households with 414 persons, per capita annual income is 4,433.53 yuan, in which agricultural income is 1,236.07 yuan, accounting for 27.88%; employment income 1,998.19 yuan, accounting for 45.07%; wage income 372.95 yuan, accounting for 8.41%; business income 641.55 yuan, accounting for 14.47%; and other income 184.78 yuan, accounting for 4.17%. In the 85 sample households with 414 persons, per capita annual expenditure is 2,391.34 yuan, including productive expenses of 109.52 yuan, accounting for 4.58%; nonproductive expenses of 2,155.47 yuan, accounting for 90.14%; and other expenses of 126.35 yuan, accounting for 5.28%. The annual per capita net income of the sample population is 2,042.18 yuan. See Table 3-17Error: Reference source not found. Table 3-17 Annual Income and Expenditure of Sample Households Item Amount (yuan) Per capita (yuan) Percent (%) Gross household income 1835481.4 4433.53 100.00 Agricultural income 511732.21 1236.07 27.88 Employment income 827251.47 1998.19 45.07 Wage income 154401.3 372.95 8.41 Business income 265601.7 641.55 14.47 Other income 76498.92 184.78 4.17 Gross household 990014.76 2391.34 100.00 expenditure Productive expenses 45341.28 109.52 4.58 Nonproductive expenses 892364.58 2155.47 90.14 Other expenses 52308.9 126.35 5.28 Net incomev 845466.66 2042.18 \

The Hongshui River Project does not involve LA. v Net income = gross income – gross expenditure

18 3.2.2 Households Affected by HD

(1) WE Project

1. Age structure In the 30 sample households with 146 persons, 39 are aged 16 years or less, accounting for 26.71%; 78 aged 16-60 years, accounting for 53.08%; and 30 aged above 60 years, accounting for 20.21%. In the 30 sample households with 146 persons, 24 persons have received below primary school education, accounting for 16.44%; 36 have received primary school education, accounting for 24.66%; 64 have received junior high school education, accounting for 43.84%; 19 have received senior high school education, accounting for 13.01%; and 3 have received junior college or above education, accounting for 2.05%. See Table 3-18. Table 3-18 Age Structure and Educational Level Distribution of Sample Households Affected by HD Project Age and educational level Persons Percent (%) 16 years or less 39 26.71 16-60 years 78 53.08 Age Above 60 years 30 20.21 Subtotal 146 100.00 Below primary school 24 16.44 WE Project Primary school 36 24.66 Educational Junior high school 64 43.84 level Senior high school 19 13.01 Junior college or above 3 2.05 Subtotal 146 100.00

2. Housing conditions

In the 30 sample households, masonry concrete is the main structure, and there are also houses in masonry timber and brick-tile structures, in which 21 households live in houses in masonry concrete structure, accounting for 70%; 7 households live in houses in masonry timber structure, accounting for 23.33%; and two households live in houses in brick-tile structure, accounting for 6.67%. See Table 3-19. Table 3-19 Housing Conditions of Sample Households Affected by LA Masonry Masonry Project House structure Brick-tile Total concrete timber HHs 21 7 2 30 WE Project Percent (%) 70.00 23.33 6.67 100.00

The average housing size of these households is 296.3 m2, 60.89 m2 per capita. The average age of their houses is 6 years and all houses are provided with a full range of utilities. In the 30 sample households, the average distance from highways is 1.5km, that from the nearest school 1.2km, that from the nearest medical center 1.5km and that from the nearest bazaar 0.5km. (2) Hongshui River Project In May-June 2012, FPDO and the task force conducted a sampling survey on 16 households affected by HD with 127 persons. 1. Age structure In the 16 sample households with 127 persons, 8 persons are aged below 6 years, accounting for 6.30%; 10 aged 6-16 years, accounting for 7.87%; 82 aged 16- 60 years, accounting for 64.57%; and 27 aged 60 years or above, accounting for

19 21.26%. In the 16 sample households with 127 persons, 31 persons have received below primary school education, accounting for 24.41%; 43 have received primary school education, accounting for 33.86%; 38 have received junior high school education, accounting for 29.92%; 10 have received senior high school education, accounting for 7.87%; and 5 have received junior college or above education, accounting for 3.94%. See Table 3-20. Table 3-20 Age Structure and Educational Level Distribution of Sample Households Affected by HD Project Age and educational level Persons Percent (%) 16 years or less 18 14.17 16-60 years 82 64.57 Age Above 60 years 27 21.26 Subtotal 127 100.00 Hongshui Below primary school 31 24.41 River Project Primary school 43 33.86 Educational Junior high school 38 29.92 level Senior high school 10 7.87 Junior college or above 5 3.94 Subtotal 127 100.00

2. Housing conditions In the 16 sample households, masonry concrete is the main structure, and there are also houses in masonry timber structure, in which 14 households live in houses in masonry concrete structure, accounting for 87.5%; and two households live in houses in masonry timber structure, accounting for 12.5%. See Table 3-21. Table 3-21 Housing Conditions of Sample Households Affected by LA Masonry Project House structure Masonry timber Total concrete Hongshui River HHs 14 2 16 Project Percent (%) 87.5 12.5 100.00

The average housing size of these households is 276.2 m2, 46.82 m2 per capita. The average age of their houses is 6 years and all houses are provided with a full range of utilities. In the 16 sample households, the average distance from highways is 1km, that from the nearest school 0.7km, that from the nearest medical center 0.6km and that from the nearest bazaar 0.5km.

3.3 Analysis of Minority Population In 2010, the population in the project area of the WE Project was 9,376, including a minority population of 2,101, accounting for 22.41%; the project area of the Hongshui River Project was 4,861, including a minority population of 653, accounting for 13.43%. See Table 3-22Error: Reference source not found. All ethnic minority groups in the project area live together with local Han people, and there is no ethnic boundary in residents’ social intercourse. These ethnic groups have no ancestral domain or special living area; and there are little differences in economic, social and political institutions between the ethnic minorities and the Han people. All ethnic groups in the project area are highly fused: 1) They speak Mandarin Chinese in daily intercourse; 2) All residents in the project area do not pay attention to their ethnic identities; and 3) Minority people have the same income sources (outside employment and crop cultivation) with local Han people.

20 Table 3-22 Summary of Minority Population in the Project Area Minority Ethnic Proporti Admin. Living Townshi populati minori on to No Village / Populati central Remar Project p / sub- HHs on ty gross . communit on ly or ks populati district not y on (%) Zhuan 1 Gusan 798 2347 640 No 27.27 g Zhuan 2 Shacun 670 2810 512 No 18.22 g Changlin Zhuan 3 Chengbe 500 1721 380 No 22.08 WE g g i Sub- Statisti Project Zhuan 4 district Mengcun 386 1533 291 No 18.98 cs of g 2010 Zhuan 5 Qiaogui 58 205 43 No 20.98 g Zhuan 6 Fangcun 172 760 235 No 30.92 g 258 7 Subtotal 9376 2101 / 2101 22.41 4 8 Hongsh Zhenxi 4861 653 No 13.43 Statisti Laibin 119 Zhuan ui River Commun cs of Town 0 g Project ity 2010

3.4 Social Gender Analysis

3.4.1 Overall Development of Women in the Project Area

The WE Project and the Hongshui River Project involve Xingbin District, Laibin City. With the promulgation of the Development Outline for Chinese Women and Children, the Development Program for Women and Children of Guangxi, and the Development Program for Women of Laibin City in recent years, work on women and children has been balanced with economic and social development in Laibin City in recent years. (1) Women’s education According to the Mid-term Evaluation Report of Laibin City on the Implementation of the Development Outline for Chinese Women and Children, and the Development Program for Women and Children of Guangxi in 2001-2010, nine- year compulsory education had been popularized in Laibin City and the right of girls to receive education protected by 2010. The enrollment rate of girls of school age at the primary school stage is 99.45% and annual drop-out rate 0.29%. The gross enrollment rate of girls at the junior high school stage is 100% and annual drop-out rate 2.07%. Due to the difficulty of poor girls in receiving education, social assistance programs for poor girls have been implemented, such as Project Hope and the Spring Bud Program. (2) Women’s employment and protection of rights According to the Mid-term Evaluation Report of Laibin City on the Implementation of the Development Outline for Chinese Women and Children, and the Development Program for Women and Children of Guangxi in 2001-2010, in 2010, 6,624 female farmers were employed at 16 talent fairs held in Laibin City, and 235 women with difficulty in employment were placed to public welfare jobs. The women’s federations, finance bureaus, and labor and social security bureaus at all levels granted small-grant secured loans to women in cooperation with Agricultural Bank of China. By the end of 2010, small-grant secured loans amounting to 289 million yuan had been granted, supporting over 7,000 women to start up businesses, promoting the employment of over 50,000 women and creating nearly 20,000 jobs. (3) Women’s health According to the Mid-term Evaluation Report of Laibin City on the

21 Implementation of the Development Outline for Chinese Women and Children, and the Development Program for Women and Children of Guangxi in 2001-2010, in 2010, 91.06% of the city’s rural population was covered by new-type cooperative medical care, the delivery rate of pregnant inpatients was 92.54%, and the mortality of pregnant and lying-in women was 14.38/100,000; in addition, disease prevention and control for women and children was strengthened. (4) Women’s participation in social decision-making and management According to the Mid-term Evaluation Report of Laibin City on the Implementation of the Development Outline for Chinese Women and Children, and the Development Program for Women and Children of Guangxi in 2001-2010, as of October 2010, there were 23 division-level female officials and 74 deputy-division- level ones in the city. Currently, there are 336 municipal people’s congress deputies, including 84 women, accounting for 25.94%; 1,271 county-level people’s congress deputies, including 333 women, accounting for 26.19%; and 4,271 township-level people’s congress deputies, including 1,098 women, accounting for 25.7%.

3.4.2 Survey on Women’s Development in the Project Area

The task force paid special attention to women in the sampling survey. In the 115 sample households with 660 persons in the WE Project, there are 318 women, accounting for 48.18%; in the 16 sample households with 127 persons in the Hongshui River Project, there are 78 women, accounting for 61.41%. The task force has learned that women in the project area have almost no difference from men in educational level, employment, and family and social status. (1) Women’s education The socioeconomic survey shows that men and women in the project area differ slightly in educational level, but the proportion of women having received junior high school or above education is lower than that of men. (2) Women’s employment and labor The socioeconomic survey shows that in the samples of labor age in the project area, men and women have similar employment structures, while the employment rate of women is slightly lower than that of men, mainly because women have to do housework and take care of other family members, and some women have lower labor skills and educational levels than men. (3) Gender division of labor The socioeconomic survey and interviews with some women show that in the project area, a couple farming or working outside together is the main pattern of household division of labor. In about 10% of the sample households, couples farm together, and in about 35% of the sample households, couples work outside together. It is learned from the field investigation that in households where husbands work outside, all farm work is done by women. (4) Participation in public affairs The socioeconomic survey and interviews with some women show that a small part of women in the project area participate in village public affairs, and the female respondents rarely comment on public affairs and would attend village meetings only when their husbands are absent. 70% of women think that their husbands should attend such meetings if they are at home.

22 4 Legal Framework and Policy Objectives In order to implement the LA, HD and resettlement work of the project effectively, protect the lawful rights and interests of the affected persons and entities, and facilitate project implementation, the resettlement policy framework of the WE Project and the Hongshui River Project has been formulated in accordance with the laws and regulations of the People’s Republic of China (PRC), Guangxi and the Laibin Municipal Government on LA and HD, as well as the Bank’s policy on involuntary resettlement (OP4.12). The resettlement work of the WE Project and the Hongshui River Project will be conducted in strict conformity with the policies in the RAP, and any change during implementation should be approved by the Bank.

4.1 Policy Framework

See Table 4-23. Table 4-23 Summary of Applicable Policies Effective Level Policy document date Land Administration Law of the PRC 2004-8-28 Regulations on the Implementation of the Land Administration Law of 1998-12-27 the PRC (Decree No.256 of the State Council) Decision of the State Council on Deepening the Reform and Rigidly 2004-10-21 Enforcing Land Administration (SC [2004] No.28) Interim Regulations of the PRC on Farmland Occupation Tax 2008-1-1 Guidelines on Improving Compensation and Resettlement Systems for 2004-11-3 Land Acquisition (MLR [2004] No.238) State Notice of the State Council on Intensifying Land Control (SC [2006] 2006-8-31 No.31) Measures for Announcement of Land Acquisition 2002-1-1 Notice of the Ministry of Land and Resources on Providing MLR [2004] Compensation for Land Acquisition Practically No.58 Real Right Law of the PRC 2007-10-1 Regulations on the Acquisition and Compensation of Houses on State- 2011-1-21 owned Land Measures of Guangxi Zhuang Autonomous Region for the 2001-9-1 Implementation of the Land Administration Law of the PRC Regulations of Guangxi Zhuang Autonomous Region on the Mediation and Settlement of Disputes over the Ownership of Land, Mountain 2002-9-27 Forests and Water Resources Measures of Guangxi Zhuang Autonomous Region for the Implementation of the Interim Regulations of the PRC Concerning the 1990-8-29 Assignment and Transfer of the Right to the Use of the State-owned Land in the Urban Areas Guangx Detailed Rules of Guangxi Zhuang Autonomous Region on the i Implementation of the Administrative Regulations for Urban House 2004-6-28 Demolition Notice of the General Office of the Guangxi Zhuang Autonomous Region Government on Forwarding the Interim Measures of Guangxi Zhuang 2008-1-22 Autonomous Region for Social Security for Land-expropriated Farmers (GRGO [2008] No.18) Decisions of the Guangxi Zhuang Autonomous Region Government on Improving the Basic Endowment Insurance System for Enterprise Employees (I) (GRG [2006] No.54) Laibin Notice of the General Office of the Laibin Municipal Government on City Adjusting the Compensation Rates for Collective Land Acquisition and 2010-1-1 Ground Attachment Demolition in the Urban Area (LMGO [2010] No.160) Notice of the General Office of the Laibin Municipal Government on 2009-2-26 Issuing the Measures of Laibin City for the Implementation of Social Security for Land-expropriated Farmers (LMGO [2009] No.43)

23 Effective Level Policy document date Notice of the Laibin Municipal Government on Issuing the Interim Measures on Transitional Living Security for Land-expropriated Farmers 2011-5-31 in the Main Urban Area (LMG [2011] No.49) Notice of the General Office of the Laibin Municipal Government on Issuing the Supplementary Provisions on Compensation and 2009-10-22 Resettlement for Collective Land Acquisition and House Demolition in the Urban Area (LMGO [2009] No.196) Notice of the General Office of the Laibin Municipal Government on Issuing the Measures for Compensation and Resettlement for Collective 2008-5-8 Land Acquisition and House Demolition in the Urban Area (LMGO [2008] No.45) Notice of the General Office of the Laibin Municipal Government on Adjusting the Compensation Rates for Collective Land Acquisition and 2010-8-3 Ground Attachment Demolition in the Urban Area (LMGO [2010] No.160) Notice of the Laibin Municipal Government on Promulgating the Uniform Average Annual Output Value Rates for Land Acquisition (LMGO [2010] 2010-1-1 No.4) Notice of the Laibin Municipal Government on Issuing the Compensation 2011-8-24 Rates for House Acquisition on State-owned Land (LMGO [2011] No.74) Notice of the Laibin Municipal Government on Issuing the Interim Measures for the Acquisition and Appraisal of Houses on State-owned 2012-1-1 Land (LMGO [2012] No.4) Notice of the General Office of the Laibin Municipal Government on Issuing the Implementation Plan for the Employment Training of Land- 2011-12-16 expropriated Farmers in the Urban Area (LMGO [2011] No.239) Notice of the General Office of the Laibin Municipal Government on Issuing the Implementation Plan for the Construction Schedule of Urban 2011-5-19 Resettlement Communities in 2011 (LMGO [2011] No.101) Notice of the Laibin Municipal Government on Issuing the Measures for Compensation and Resettlement for House Acquisition on State-owned 2011-8-8 Land (LMG [2011] No.69) World Operational Policy OP4.12 on Involuntary Resettlement and appendixes 2002-1-1 Bank Bank Procedure BP4.12 on Involuntary Resettlement and appendixes 2002-1-1

4.2 Key Provisions of Laws and Policies on Resettlement

 Key provisions of the Land Administration Law of the PRC Article 8 Land in urban districts shall be owned by the State. Land in the rural areas and suburban areas, except otherwise provided for by the State, shall be collectively owned by farmers including land for building houses, land and hills allowed to be retained by farmers. Article 10 In lands collectively owned by farmers those have been allocated to villagers for collective ownership according to law shall be operated and managed by village collective economic organizations or villagers' committee and those have allocated to two or more farmers collective economic organizations of a village, shall be operated and managed jointly by the collective economic organizations of the village or villagers' groups; and those have allocated to township (town) farmer collectives shall be operated and managed by the rural collective economic organizations of the township (town). Article 45 The acquisition of the following land shall be approved by the State Council: (1) Basic farmland; (2) Land exceeding 35 hectares outside the basic farmland; (3) Other land exceeding 70 hectares. Article 47 In acquiring land, compensation should be made according to the original purposes of the land acquired.

24 Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. But the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition. In special circumstances, the State Council may raise the standards for land compensation and resettlement fees for land acquired according to the social and economic development level. Article 48 After the plan for land compensation and resettlement fees is finalized, related local people's governments shall make an announcement and hear the opinions of the rural collective economic organizations and farmers whose land has been acquired. Article 49 Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land acquired and accept their supervision. It is forbidden to embezzle or divert the land compensation fees and other related expenses. Article 50 Local people's governments at all levels shall support rural collective economic organizations and farmers in their efforts toward development and operations or in starting up enterprises. Article 54 A paid leasing should be go through in use of land owned by the State by a construction unit. But the following land may be obtained through government allocation with the approval of the people's governments at and above the county level according to law: (1) Land for use by government organs and for military use; (2) Land for building urban infrastructure and for public welfare undertakings; (3) Land for building energy, communications and water conservancy and other infrastructure projects supported by the State; (4) Other land as provided for by the law and administrative decrees. Article 57 In the case of temporary using State-owned land or land owned by farmer collectives by construction projects or geological survey teams, approval should be obtained from the land administrative departments of local people's governments at and above the county level. Whereas the land to be temporarily used is within the urban planned areas, the consent of the urban planning departments should be obtained before being submitted for approval. Land users should sign contracts for temporary use of land with related land administrative departments or rural collective organizations or villagers committees depending on the ownership of the land and pay land compensation fees for the temporary use of the land according to the standard specified in the contracts. Users who use the land temporarily should use the land according to the purposes agreed upon in the contract for the temporary use of land and should not build permanent structures. The term for the temporary use of land shall not usually exceed two years. Article 62 One rural household can own one piece of land for building house, with the area not exceeding the standards provided for by provinces, autonomous regions and municipalities. Construction of rural houses should conform to the general plans for the utilization of land of townships (towns) and the original land occupied by houses and open spaces of villages should be used as much as possible for building houses. The use of land for building houses should be examined by the township (town) people's governments and approved by the county people's governments. Whereas occupation of agricultural land is involved the examination and approval procedure

25 provided for in Article 44 of this law is required. The application for housing land after selling or leasing houses shall not be approved.  Key provisions of the Regulations on the Implementation of the Land Administration Law of the PRC Article 25 Municipal, county people's government of the locality whose land has been acquired shall, upon approval of the land acquisition plan according to law, organize its implementation, and make an announcement in the village(township), hamlet whose land has been acquired on the approval organ of the land acquisition, number of the approval document, use, scope and area of the acquired land as well as the rates for compensation of land acquisition, measures for the resettlement of agricultural personnel and duration for processing land acquisition compensation. Persons of ownership and persons of use right of the acquired land should, within the duration prescribed in the announcement, go to the competent department of people's government designated in the announcement to go through the registration for land acquisition compensation on the strength of land ownership certificates. The competent departments of municipal, county people's governments shall, on the basis of the approved land acquisition plan and in conjunction with the departments concerned, draw up land acquisition compensation and resettlement plan, make an announcement thereof in the village (township),hamlet wherein the acquired land is located to solicit the views of the rural collective economic organizations and peasants on the acquired land. The competent departments of land administration of municipal, county people's governments shall, upon approval of the land acquisition compensation and resettlement plan submitted to the municipal, county people's governments, organize its implementation. Where a dispute arises over the compensation rates, coordination shall be carried out by local people's government above the county level; where coordination has failed, arbitration shall be resorted to by the people's government that approved the land acquisition. Land acquisition compensation and resettlement dispute shall not affect the implementation of the land acquisition plan. Payment of various expenses for land acquisition should be effected in full within 3 months starting from the date of approval of the land acquisition and resettlement plan. Article 26 Land compensation fee goes to the rural collective economic organization; compensation fee for ground appendices and young crops shall be for the owner(s) of ground appendices and young crops. Funds earmarked for land acquisition resettlement subsidy must be used for the designated purpose and shall not be diverted to any other purpose. For persons required to be resettled by the rural collective economic organization, payment of the resettlement subsidy shall be made to the rural collective economic organization to be administered and used by the rural collective economic organization; where resettlement is to be arranged by other units, the resettlement subsidy shall be paid to the resettlement units; where no unified resettlement is required, the resettlement subsidy shall be given to the individuals to be resettled or used for the payment of insurance premium for the resettled persons on gaining the consent of the resettled persons. Municipal, county and village (township) people's governments should strengthen supervision over the use of resettlement subsidy.  Key provisions of the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration III. Improving compensation and resettlement systems for land acquisition Article 12 Improving measures of compensation for land acquisition. County- level and above local people’s governments shall take practical measures so that the standard of living of farmers affected by land acquisition is not reduced by land acquisition. Land compensation, resettlement subsidy and compensation for ground annexes and crops shall be paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the prevailing laws and

26 regulations are insufficient to maintain the former standard of living of the farmers affected by land acquisition or to pay the social security expenses of farmers who lose all land due to land acquisition, the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the farmers affected by land acquisition, local people’s governments may pay a subsidy from the income from compensated use of state land. The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall fix and publish the uniform annual output value standards or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. Compensation rates and resettlement measures for large and medium-sized water resources and hydropower projects shall be otherwise stipulated by the State Council. Article 13 Resettling land-expropriated farmers properly. County-level and above local people’s governments shall take specific measures to guarantee long- term livelihoods of farmers affected by land acquisition. For projects with a stable income, farmers may become a shareholder using the right to use of land used for construction approved pursuant to law. Within the urban planning area, local people’s governments shall bring farmers who lose all land due to land acquisition into the urban employment system, and establish a social security system; out of the urban planning area, in acquiring land collectively owned by farmers, local people’s governments shall reserve necessary cultivated land or arrange appropriate jobs for farmers affected by land acquisition within the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for farmers affected by land acquisition as soon as possible. Article 14 Improving land acquisition procedures. During land acquisition, the ownership of collective land of farmers and the right to contracted management of farmers’ land shall be maintained. Before land acquisition is submitted for approval pursuant to law, the use, location, compensation standard and resettlement mode of the land to be acquired shall be notified to farmers affected by land acquisition; the survey results of the present situation of the land to be acquired shall be confirmed by rural collective economic organizations and farmers to be affected by land acquisition; if necessary, the land and resources authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the farmers affected by land acquisition shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of farmers affected by land acquisition and land users. Approved matters of land acquisition shall be disclosed unless in special cases. Article 15 Strengthening Supervision over the implementation of land acquisition. If the compensation and resettlement for land acquisition has not been implemented, the acquired land shall not be used forcibly. The People’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall formulate the procedures for the distribution of the land compensation within rural collective economic organizations on the principle that the land compensation is used for rural households affected by land acquisition mainly. Rural collective economic organizations affected by land acquisition shall disclose the receipt, disbursement and allocation of land compensation fees to their members and accept supervision. The agricultural and civil affairs authorities shall strengthen the supervision over the allocation and use of land compensation fees within rural collective economic organizations.  Key provisions of the Guidelines on Improving Compensation and

27 Resettlement Systems for Land Acquisition Article 1 “About compensation rates for land acquisition” (2) Fixation of uniform annual output value multiples. The uniform multiple of annual output value for land compensation fees and resettlement subsidy shall be fixed within the statutory range so that land-expropriated farmers’ standard of living is not reduced; if compensation fees for land acquisition calculated from the statutory uniform multiple of annual output value are insufficient for land-expropriated farmers to maintain their former standard of living or insufficient to cover their social security costs, the multiple shall be increased appropriately with the approval of the province- level people’s government; if an aggregate multiple of 30 for land compensation fees and resettlement subsidy is still insufficient for land-expropriated farmers to maintain their former standard of living, the local people’s government shall allocate a certain proportion from the income from the compensated use of state-owned land for subsidization. For basic farmland occupied with lawful approval, the highest compensation rate announced by the local people’s government shall apply. (3) Fixation of composite land prices for land acquisition areas. Where conditions permit, the province-level land and resources authority may fix composite land prices for land acquisition for different counties and cities in the province together with other competent authorities, and report such prices to the province- level people’s government for approval, disclosure and implementation. Such prices shall be fixed in consideration of land type, output value, geographic location, farmland rating, per capita cultivated area, land supply-demand relationship, local economic level and minimum living security level of urban residents, etc. Article 2 “About means of resettlement for land-expropriated farmers”: (5) Agricultural resettlement. When rural collective land out of urban planning areas is acquired, land-expropriated farmers shall be first provided with necessary cultivated land using mobile collective land, contracted land turned over by contractors and cultivated land arising from land development so that they continue to pursue agricultural production. (6) Reemployment resettlement. Conditions shall be created actively to provide free labor skills training to land-expropriated farmers and place them to corresponding jobs. Under equal conditions, land users shall first employ land- expropriated farmers. When rural collective land within urban planning areas is acquired, land-expropriated farmers shall be included in the urban employment system and a social security system established for them. (7) Dividend distribution resettlement. When any land with long-term stable income is to be used for a project, the affected rural collective economic organization may become a project shareholder with compensation fees for land acquisition or rights to use construction land in consultation with the land user. The rural collective economic organization and rural households will receive dividends as agreed. (8) Non-local resettlement. If basic production and living conditions are not available locally to land-expropriated farmers, non-local resettlement may be practiced under the leadership of the government in consultation with the rural collective economic organization and rural households. Article 2 “About land acquisition procedures”: (9) Notification of land acquisition. Before land acquisition is submitted for approval, the local land and resources authority shall notify the affected rural collective economic organization and rural households of the use, location, compensation rate and resettlement mode of the land to be acquired in writing. After that, any ground attachment or young crop built or grown by the affected rural collective economic organization and rural households thereon shall not be compensated for. (10)Verification of survey results. The local land and resources authority shall investigate the ownership, type and size of the land to be acquired, and the ownership, types and quantities of ground attachments, and the investigation results shall be confirmed together with the affected rural collective economic organization, rural households and proprietors of ground attachments.

28 (11)Hearing on land acquisition. Before land acquisition is submitted for approval, the local land and resources authority shall notify the affected rural collective economic organization and rural households of the right of application for hearing on the compensation rate and the mode of resettlement. In case of application for hearing, hearing shall be organized pursuant to the applicable procedures and requirements.  Key provisions of the Regulations on the Acquisition and Compensation of Houses on State-owned Land Article 2 Article 2 Where a building of any entity or individual on state-owned land is expropriated for public interest, the owner of the expropriated building (hereinafter referred to as the “owner”) shall be fairly compensated. Article 8 Where, for public interests such as safeguarding the national security and promoting the national economic and social development, it is necessary to expropriate a building under any of the following circumstances, the people’s government at the city or county level shall make a decision to expropriate the building: (1) necessary for national defense and foreign affairs; (2) necessary for the construction of energy, transportation, water and other infrastructures as organized and implemented by the government; (3) necessary for a public cause such as science and technology, education, culture, health, sports, environment and resource protection, disaster prevention and mitigation, protection of cultural relics, social welfare or municipal utilities as organized and implemented by the government;

(4) necessary for the construction of a social security housing project as organized and implemented by the government;

(5) necessary for the rebuilding of an old urban area where dilapidated buildings concentrate and infrastructure lags behind as organized and implemented by the government according to the relevant provisions of the Urban and Rural Planning Law; or

(6) necessary for any other public interest as prescribed by a law or administrative regulation. Article 10 The building expropriation department shall draft an expropriation and compensation plan and report it to the people’s government at the city or county level. The people’s government at the city or county level shall organize the relevant departments to demonstrate the expropriation and compensation plan and publish it for public opinions. The period for solicitation of public opinions shall be no less than 30 days. Article 11 The people’s government at the city or county level shall publish in a timely manner the public opinions solicited and the amendments made according to the public opinions. Where buildings need to be expropriated due to the rebuilding of an old urban area, if the majority of the owners consider that the expropriation and compensation plan does not conform to the provisions of this Regulation, the people’s government at the city or county level shall organize a hearing attended by the owners and the representatives of the public, and amend the plan according to the results of the hearing. Article 17 The compensation granted to an owner by the people’s government at the city or county level which makes a building expropriation decision shall include:

(1) compensation for the value of the building expropriated;

(2) compensation for the relocation or temporary settlement resulting from the building expropriation; and

29 (3) compensation for the production or business interruption losses resulting from the building expropriation.

The people’s government at the city or county level shall formulate subsidization and incentive measures to give subsidies and incentives to the owners.

Article 18 In case of expropriation of personal housing, if the owner meets the housing security conditions, the people’s government at the city or county level which makes the building expropriation decision shall give priority to providing housing security for him. The specific measures shall be formulated by a province, autonomous region or municipality directly under the Central Government. Article 19 The compensation for the value of the building expropriated shall not be less than the market price of real estate similar to the building expropriated on the date of announcement of the building expropriation decision. The value of the building expropriated shall be assessed by an eligible real estate price assessment institution according to the assessment measures for building expropriation. Article 21 An owner may choose either monetary compensation or exchange of titles. Article 27 Compensation shall be made before relocation in building expropriation.

After the people’s government at the city or county level which makes a building expropriation decision compensates an owner, the owner shall complete relocation within the time limit for relocation as agreed on in the compensation agreement or as determined in the compensation decision.

No entity or individual shall force an owner to relocate by violence or threat, by cutting off the supply of water, heating, gas or electricity or road passage in violation of the relevant provisions or by any other illegal means. Construction entities shall be prohibited from involvement in relocation activities.

 Key provisions of the Real Right Law of the PRC Article 2 The civil relationships incurred from the attribution and utilization of the res shall be governed by the present Law. The term "res" as mentioned in the present Law means realties and chattels. Where it is prescribed in any provision that certain right shall be taken as an object of real right, such provision shall be applicable. The term "real right" as mentioned in the present Law means the exclusive right of direct control over a specific res enjoyed by the holder in accordance with law, including ownership, usufractuary right and real rights for security. Article 32 Where a real right is damaged, the right holder may settle the problem by means of conciliation, mediation or arbitration, etc. Article 33 Where any dispute over the ownership or content of real right arises, the interested parties may require the confirmation of the right. Article 34 Where a realty or chattel is under an unauthorized possession, the right holder may require the returning of the original object. Article 35 In case a real right is under obstruction or may be obstructed, the right holder may require the removing of the impediment or the termination of the danger. Article 36 In case a realty or chattel is damaged, the right holder may require the repairing, remaking, changing or the restoration of the original state. Article 37 In case the infringement upon a real right causes losses to the right holder, the right holder may require the compensation for the losses or the assuming of any other civil liability. Article 59 The realties and chattels that are in the ownership of a farmers’ collective shall be collectively owned by all the members of this collective. The following issues shall be determined by the members of the collective according to the statutory procedures: (1) land contracting plan and whether to contract out a land to an entity or

30 individual not included in the collective; (2) adjustment of the contracted lands among the right holders of the contracted management of land; (3) methods for using and distributing such fees as land compensation fees; (4) the alteration of ownership or any other related issue of an enterprise set up with the funds invested in by the collective; and (5) other issues provided for by any law.  Key provisions of the Measures of Guangxi Zhuang Autonomous Region for the Implementation of the Land Administration Law of the PRC Article 4 A land use regulation system is practiced throughout our region. Governments at all levels shall developed their respective master land utilization plans to stipulate land uses, and divided land into farmland, construction land and unused land. The conversion of farmland into construction land shall be restricted strictly and the gross amount of construction land shall be controlled. Any entity or individual must use land in conformity with the use specified in the master land utilization plan and approved in the approval letter of construction land, and shall not alter the use thereof without authorization. Article 5 A compensation system for farmland occupation and a basic farmland protection system are practiced in our region. Article 10 For land owned collectively by farmers, the owners shall file an application for land registration with the administrative department in charge of land of the municipal or county government, and the municipal or county government shall issue a certificate of ownership of collective land to confirm such ownership. If land owned collectively by farmers is used for nonagricultural construction according to law, the land user shall apply for such use with the administrative department in charge of land of the municipal or county government, and the municipal or county government shall issue a certificate of the right to use collective land to confirm the right of use. Article 11 For state-owned land used by any entity or individual according to law, the land user shall apply for land registration with the administrative department in charge of land of the municipal or county government, and the municipal or county government shall issue a certificate of the right to use collective land to confirm the right of use. Article 51 After the acquired land is approved according to law, the municipal or county government shall release a land acquisition announcement in the affected township and village within 15 days of approval.  Key provisions of the Interim Measures of Guangxi Zhuang Autonomous Region for Social Security for Land-expropriated Farmers Article 6 Subjects of the old-age security for land-expropriated farmers (LEFs) shall be farmers whose per capita remaining cultivated area is less than 0.3 mu after land acquisition according to law. Article 7 The level of old-age security for LEFs shall be suited to local economic and social development, and the benefit level shall be linked up with the contribution rate, where several levels shall be available at LEFs’ option. Article 8 Raising of funds of old-age security for LEFs (1) Funds of old-age security for LEFs shall be contributed jointly by the individual, collective and government, where the proportion of contribution by the individual and collective shall not be more than 70%, and that by the government not less than 30%. (2) The individual contribution shall be withheld from the resettlement subsidy, the collective contribution withheld from land compensation fees, and the government contribution appropriated from transfer fees of the right to use state-owned land. (3) Amounts contributed by the individual and collective shall be entered into the individual account, and those contributed by the government into the pooling account. Article 9 Collection of funds of old-age security for LEFs (1) Those having attained 60 years upon land acquisition shall pay old-age

31 security fees at a time. (2) Those having attained statutory labor age (16 years) but not attained 60 years upon land acquisition shall pay old-age security fees at a time in principle. If any LEF is unable to pay such fees at a time, he may pay such fees in several times, but the amount of the first payment shall not be less than 60% of the total amount due, and the amount of each subsequent payment shall not be less than 10%. (3) For those having not attained statutory labor age upon land acquisition, resettlement subsidies for land acquisition shall be paid at a time, and they will participate in old-age security when attaining statutory labor age as the case may be. Article 10 Those participating in old-age security for LEFs and making contribution as stipulated shall be entitled to old-age security benefits on a monthly basis after attaining 60 years. Old-age security benefits shall be based on the level chosen. Article 16 All LEFs shall be included in the local medical security system. (1) LEFs turned into unemployed urban residents shall participate in the basic medical insurance for urban residents; (2) LEFs who are still rural residents shall participate in new-type rural cooperative medical care; (3) LEFs who work in town as rural residents and those who are employed as urban residents shall participate in the basic medical insurance for urban employees along with their employers; those employed flexibly shall participate in the basic medical insurance for urban employees as individuals; (4) LEFs who can hardly participate in the basic medical insurance for urban employees or new-type rural cooperative medical care due to living difficulty shall be included in local urban and rural medical assistance. Article 17 On the basis of territorial management, LEFs eligible for minimum living security for urban residents shall be included in the minimum living security system for urban residents; LEFs meeting the criteria of minimum living security for destitute rural residents shall be included in the minimum living security system for destitute rural residents.  Notice of the Laibin Municipal Government on Issuing the Compensation Rates for House Acquisition on State-owned Land (LMGO [2011] No.74) II. Compensation rates for relocation In case of relocation due to house acquisition, the acquirer shall pay a moving subsidy of 800 yuan/household to the displaced person at a time. III. Transition subsidy If the displaced person chooses property swap and secures transitional housing itself, a subsidy of 6 yuan/m2 of building area of the acquired house shall be paid, not more than 1,000 yuan per household.  Notice of the Laibin Municipal Government on Issuing the Measures for Compensation and Resettlement for House Acquisition on State-owned Land (LMG [2011] No.69) Article 5 After the municipal government determines the range of acquisition, the house acquisition department shall investigate and register the ownership, location, building area, use and ground attachments of each house within the range, and the affected person shall cooperate. The survey results shall be disclosed to the affected persons. Article 7 The compensation program for acquisition shall be drafted by the house acquisition department and submitted to the municipal government for approval. Article 8 The municipal government shall organize the departments concerned to demonstrate the compensation program and solicit public comments, and disclose such comments and the revised program m timely. A public hearing shall be held for revision if necessary. Article 10The municipal government shall publish an announcement timely after making the decision of house acquisition. If any affected person disagrees with such decision, it may apply for administrative reconsideration according to law. Article 11After the range of acquisition is determined, no house shall be constructed,

32 expanded, reconstructed or diverted to any other purpose within such range, otherwise such house shall not be compensated for. Article 13If the house acquisition department fails to reach a compensation agreement with the affected person within the specified period, or the owner of the acquired house is unclear, the acquirer shall make a decision on compensation according to the compensation program and disclose it. Article 18 When the property or house of an entity or individual on state-owned land is acquired, the municipal government shall compensate the affected person according to law. Article 19 The affected person may choose either cash compensation or property swap. Article 20 If the affected person chooses cash compensation, the value of the acquired house shall be appraised by a qualified agency. A subsidy of 15% shall be added to house compensation fees (excluding decoration, attachments, etc.). Article 22 If the affected person chooses property swap, the acquirer shall offer a nearby or non-local house for property swap. Article 28 Non-residential properties of administrative agencies or public institutions acquired shall be subject to cash compensation or non-local resettlement. Article 30 Any acquired productive property of an enterprise shall be compensated for as follows: (1) If the affected enterprise chooses cash compensation, the acquired property shall be appraised by a qualified agency to determine its amount of compensation. A subsidy of 15% shall be added to property compensation fees (excluding decoration, attachments, etc.). (2) If the affected enterprise chooses property swap, it shall be relocated to the municipal industrial park and be allocated a standard industrial building of the same size as its former property. Article 35 If relocation arises from house acquisition, the acquirer shall pay a moving subsidy to the affected person. Article 36 In case of property swap, before the replacement house is delivered, the acquirer shall pay a transition subsidy or provide a transitional house. Article 37 Losses from production or business suspension due to property acquisition shall be compensated for at 5% of the compensation price for the acquired property (excluding decoration, attachments, etc.).  Notice of the General Office of the Laibin Municipal Government on Issuing the Supplementary Provisions on Compensation and Resettlement for Collective Land Acquisition and House Demolition in the Urban Area (LMGO [2009] No.196) IV. Resettlement measures 1. Resettlement standard (1) If any AH’s land is fully acquired, it will be granted business premises at a building area of 40 m2 per capita (including shared area), including 20 m2 on the first floor for commercial use and 20 m2 on the second floor in a mixed commercial and residential building. (2) If any AH’s lawful house is demolished, it will be granted with housing at a building area of 40 m2 per capita (including shared area).  Notice of the General Office of the Laibin Municipal Government on Issuing the Measures for Compensation and Resettlement for Collective Land Acquisition and House Demolition in the Urban Area (LMGO [2008] No.45) Article 21 A displaced person referred to herein means the lawful owner of a demolished house and attachments thereto on collective land. Article 22 Any demolished building or structure on collective land with a certificate of land use right or certificate of title to house property shall be compensated for hereunder. Article 24 The modes of compensation and resettlement for houses on collective land shall include cash compensation, property swap and resettlement on housing land. In case of property swap, no resettlement subsidy shall be paid.

33 (1) In case of cash compensation, compensation fees for the demolished house, a resettlement subsidy, a moving subsidy, an early moving reward and a transition subsidy for 3 months shall be paid. For an industrial property, compensation for losses from production or business suspension shall also be paid. The resettlement subsidy shall be based on the building area of the demolished house. (2) In case of property swap, a moving subsidy, an early moving reward and a transition subsidy shall be paid, and the a commercial or affordable house in masonry concrete and with ordinary decoration shall be provided. (5) In case of resettlement on housing land, compensation fees for the demolished house, compensation fees for the land occupied by the demolished house, a moving subsidy, an early moving reward and a transition subsidy for not more than one year shall be paid. The displaced household must apply for housing land of 25 m2 per capita and not more than 100 m2 per household at cost price to construct a new house. The three supplies (water, electricity and traffic) and leveling of such housing land shall be provided by the land user.  Notice of the General Office of the Laibin Municipal Government on Adjusting the Compensation Rates for Collective Land Acquisition and Ground Attachment Demolition in the Urban Area (LMGO [2010] No.160 I. Compensation rates for LA (including land compensation fees and resettlement subsidies):1.30,172 yuan/mu for collective farmland (irrigated land, non-irrigated land, garden land, woodland, ponds, lotus root ponds, pasture land, etc.), 53,772 yuan/mu for fishponds;2. 27,155 yuan/mu for collective construction land;3. 17,000 yuan/mu for unused collective pasture land, 6,034 yuan/mu for bare gravel land II. In case of use of state-owned land of state-owned agricultural, forestry, livestock and fish farms according to law, compensation shall be based on the compensation rates for the acquisition of the same type of collective land. IV. Compensation rates for young crops:The compensation rate for young crops on collective farmland (irrigated land, non-irrigated land, garden land, woodland, ponds, lotus root ponds, pasture land, etc.) shall be 1,588 yuan/mu, that for fishponds 4,481 yuan/mu and that for sugarcane fields 2,062 yuan/mu. Trees on acquired woodland that have been approved for felling according to law shall be owned by their proprietor.  Key provisions of the Notice of the Laibin Municipal Government on Issuing the Interim Measures on Transitional Living Security for Land- expropriated Farmers in the Main Urban Area Article 2 These Measures apply to the transitional security of land-expropriated farmers (LEFs for short) in the main urban area of our city, which means that identified in the master development plan of Laibin City in April 2009. Transitional living security means a form of living subsidy provided by the government to LEFs for the transition period from land acquisition to the time a commercial property is available in order to ensure that their living standard is not reduced. Article 5 Sources of special funds of transitional living security for LEFs: (1) Municipal land transfer fees; (2) Financing with reserved land. (3) Minimum living security funds; and (4) Other funds available for transitional living security for LEFs. Article 6 LEFs eligible for transitional living subsidy shall be first included in minimum living security for residents. Article 15 When applying for transitional living subsidy, LEFs shall also apply for minimum living security. Those eligible shall be included in minimum living security for urban residents according to law.  Notice of the General Office of the Laibin Municipal Government on Issuing the Measures of Laibin City for the Implementation of Social Security for

34 Land-expropriated Farmers (LMGO [2009] No.43) Article 2 These Measures shall apply to registered agricultural population losing all or most of land (per capita remaining cultivated area less than 0.3 mu) due to the acquisition of rural collective land by the state within the urban area of Laibin City and Xingbin District, and having contracted rural collective land at the time of acquisition. Article 5 The public employment service agency shall handle unemployment registration for and provide one-stop employment services to LEFs for free to help them get employed as soon as possible. Article 7 All competent authorities shall strengthen guidance on individual businesses for LEFs, and provide policy consulting, start-up training and guidance services to encourage LEFs to start up businesses. Article 8 Scope and subjects of old-age security for LEFs: registered agricultural population having attained 16 years, losing all or most of land (per capita remaining cultivated area less than 0.3 mu) due to the acquisition of rural collective land by the state within the urban area of Laibin City and Xingbin District, and having contracted rural collective land at the time of acquisition Article 10 Raising of funds of old-age security for LEFs (1) Old-age security for LEFs shall be shared by the individual, collective and government at the proportions of 30%, 30% and 40% respectively. The individual contribution shall be withheld from the resettlement subsidy, the collective contribution withheld from land compensation fees, and the government contribution appropriated from transfer fees of the right to use state-owned land. If land compensation fees have been paid directly to LEFs, the collective contribution shall be borne by the individual. (2) Amounts contributed by the individual and collective shall be entered into the individual account, and those contributed by the government into the pooling account. Article 11 Collection of old-age security fees The amount of contribution and payment level of old-age security shall be based on the age of the LEF at the time of acquisition, the minimum living standard and the deposit rate of the fund. Article 12 Old-age security benefit (1) LEFs shall receive old-age security benefits on a monthly basis when attaining 60 years (55 years for women) after paying old-age security fees in full with the approval of the social insurance handling agency. Article 14 All LEFs shall be included in medical security on the basis of territorial management: (1) LEFs turned into unemployed urban residents shall participate in the basic medical insurance for urban residents; (2) LEFs who are still rural residents shall participate in new-type rural cooperative medical care; (3) LEFs who work in town as rural residents and those who are employed as urban residents shall participate in the basic medical insurance for urban employees along with their employers; those employed flexibly shall participate in basic medical insurance as individuals. Article 15 On the basis of territorial management, LEFs eligible for minimum living security for urban residents shall be included in the minimum living security system for urban residents; LEFs meeting the criteria of minimum living security for destitute rural residents shall be included in the minimum living security system for destitute rural residents.  Decisions of the Guangxi Zhuang Autonomous Region Government on Improving the Basic Endowment Insurance System for Enterprise Employees (I) (GRG [2006] No.54) (II) Calculation of basic pension 1. Basic pension = [(average monthly wages of in-service employees of urban entities of the region in the previous year + the individual’s indexized average monthly contributed wages )÷2] × period of contribution × 1%, where:

35 (1) The average monthly wages of in-service employees of urban entities are the average monthly wage income of in-service employees of all urban entities inclusive of government agencies, public institutions and enterprises. (2) The individual’s indexized average monthly contributed wages shall be calculated as follows: The individual’s indexized average monthly contributed wages = average monthly wages of in-service employees of urban entities of the region in the previous year × the individual’s monthly average index of contributed wages  Bank policy on involuntary resettlement 10. The implementation of resettlement activities is linked to the implementation of the investment component of the project to ensure that displacement or restriction of access does not occur before necessary measures for resettlement are in place. For impacts covered in para. 3(a) of this policy, these measures include provision of compensation and of other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, taking of land and related assets may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to the displaced persons. For impacts covered in para. 3(b) of this policy, the measures to assist the displaced persons are implemented in accordance with the plan of action as part of the project. 11. Preference should be given to land-based resettlement strategies for displaced persons whose livelihoods are land-based. These strategies may include resettlement on public land, or on private land acquired or purchased for resettlement. Whenever replacement land is offered, resettlers are provided with land for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the land taken. If land is not the preferred option of the displaced persons, the provision of land would adversely affect the sustainability of a park or protected area,16 or sufficient land is not available at a reasonable price, non-land-based options built around opportunities for employment or self-employment should be provided in addition to cash compensation for land and other assets lost. The lack of adequate land must be demonstrated and documented to the satisfaction of the Bank. 15. Criteria for Eligibility. Displaced persons may be classified in one of the following three groups: (a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); (b) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the resettlement plan; and (c) those who have no recognizable legal right or claim to the land they are occupying.

4.3 Key Differences between Bank Policies and PRC Laws Compensation and resettlement of vulnerable groups  Difference: Bank policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the  Solution: Special funds are available to assist the vulnerable groups, who will be identified during the DMS. Consultation and disclosure  Difference: Bank policies require APs are fully informed and consulted as soon as possible. Although there are measures for announcement of land acquisition in China, the period of announcement is usually short, so that APs are often unable to participate effectively.  Solution: Consultation has begun at the early stage (before and during the

36 technical assistance). The PMO agrees to disclose the RAP and provide the RIB to APs as required by the Bank. Legal title  Difference: Bank policies require all demolished houses, whether lawful or not, should be compensated for. According to Chinese laws, no compensation should be provided for the acquisition of illegally owned land and houses.  Solution: For an Bank financed project, all APs, whether lawful or not (before the cut-off date), whether having legal title or not, will be provided with compensation or assistance. Resettlement monitoring, evaluation and reporting  Difference: Bank requires that internal and external resettlement monitoring be conducted. However, there is no such requirement in Chinese laws, expect for reservoir projects.  Solution: Internal and external resettlement monitoring mechanisms have been established for all Bank financed projects, and this has been included in the RAP.

4.4 Resettlement Policies of the WE Project The resettlement policies applicable to the WE Project and the Hongshui River Project have been developed in accordance with the policies of the PRC, the Guangxi Government, the Laibin Municipal Government and the Bank on resettlement. The criteria for entitlement and property appraisal, and compensation rates specified in these policies should not be altered without the approval of the Bank. According to the existing design, the main impacts of this project are land acquisition/occupation and HD, to which the following policies apply:

4.4.1 Policy on for Compensation for Collective Land Acquisition and Labor Resettlement

(1) In case of LA, the acquired land shall be compensated for based on its original use and young crops thereon. The compensation rates for LA shall be compensated as district land price. (2) Compensation fees for LA shall be paid by the agencies responsible for LA and HDdirectly to the AHs. The households affected by LA may participate in local employment training voluntarily and freely, and those eligible may participate in the endowment insurance for LEFs voluntarily.

4.4.2 Policy on Permanent Occupation of State-owned Land

In the WE Project, state-owned water surface, river flat and unused land occupied has been acquired by allocation, and young crops thereon will be compensated on an as-is basis; houses on the affected state-owned industrial land and housing land will be compensated for in cash through appraisal.

The state-owned land for entities and housing land, and houses thereon affected by the Hongshui River Project shall be compensated for in cash through market appraisal.

4.4.3 Policy on Compensation and Resettlement for Residential House Demolition

4.4.3.1 House compensation and resettlement

37 House compensation and resettlement on collective land Residential houses (including those on collective land and state-owned land) affected by the WE Project and the Hongshui River Project will be compensated by cash compensation , Property swap and Resettlement on housing land. Property swap In case of Property swap, the resettlement policy is 40+40 modle,namely: (1) If any AH’s lawful house is demolished, it will be granted with housing at a building area of 40 m2 per capita (including shared area). (2) If any AH’s land is fully acquired, it will be granted business premises at a building area of 40 m2 per capita (including shared area), including 20 m2 on the first floor for commercial use and 20 m2 on the second floor in a mixed commercial and residential building. The purchase price for the entitled resettlement size will be borne by the government. Any size difference will be settled at market price. In case of resettlement on housing land, compensation fees for the demolished house, compensation fees for the land occupied by the demolished house, a moving subsidy, an early moving reward and a transition subsidy for not more than one year shall be paid. Cash Compensation In case of cash compensation, compensation fees for the demolished house, a resettlement subsidy, a moving subsidy, an early moving reward and a transition subsidy for 3 months shall be paid. For an industrial property, compensation for losses from production or business suspension shall also be paid. Resettlement on housing land In case of resettlement on housing land, compensation fees for the demolished house, compensation fees for the land occupied by the demolished house, a moving subsidy, an early moving reward and a transition subsidy for not more than one year shall be paid. The displaced household must apply for housing land of 25 m2 per capita and not more than 100 m2 per household at cost price to construct a new house. The three supplies (water, electricity and traffic) and leveling of such housing land shall be provided by the land user. IA will coordinate with relevant departments to provide house land.

House compensation and resettlement on state-owned land Houses on state-owned land acquired for the WE Project and the Hongshui River Project will be compensated. The affected person may choose either cash compensation or property swap. If the affected person chooses cash compensation, the value of the acquired house shall be appraised by a qualified agency. A subsidy of 15% shall be added to property compensation fees (excluding decoration, attachments, etc.). If the affected household chooses property swap, it may exchange its house for a house in any reconstructed area, nearby area or non-local area.

4.4.3.2 Subsidies A displaced household will be granted a moving subsidy and a transition (not more than 18 months) subsidy. (1) Moving subsidy: 800 yuan per household; (2) Transition subsidy: 6 yuan/month·m2(The most compensation is no more than 1000yuan for per househould)

4.4.4 Compensation and Resettlement Policy for Entities

Non-residential properties demolished for the WE Project and the Hongshui River Project will be compensated for in cash through appraisal. The enterprise affected by the WE Project has gone bankrupt and no one is affected. Employees of Laibin Dongtang Guibao Co., Ltd. only will be affected by the Hongshui River Project. All its production facilities have been relocated to Zhenglong Xiang, and only its dormitories remain in the project area. The new dormitories are being constructed on the plant site in Zhenglong Xiang, and the affected employees will receive housing subsidies during the transition period.

38 4.4.5 Compensation and Restoration Policy for Temporary Land Occupation

Temporary occupation of rural collective land shall be compensated for based on the purpose and loss of occupation. Compensation fees for temporary land occupation include young crop/ground attachment compensation fees, and land reclamation costs.  Temporarily occupied land shall be compensated for based on the period of occupation and the annual output value of land; non-cultivated land shall be compensated for by reference to cultivated land.  The period of temporary occupation shall not exceed 2 years.  To reduce the impact of LA on young crops, the project will be constructed after harvesting or before sowing as the case may be, subject to a one month prior notice to affected farmers.  No compensation fees shall be calculated for temporary occupation of state- owned land. Demolished ground attachments shall be compensated for at replacement cost or restored by LPMO according to the former standard and size under the project budget.

4.4.6 Compensation Policy for Vulnerable Groups

In addition to the above compensation policies for LA, affected vulnerable groups are also entitled to the following preferential policies:  Laborers in vulnerable households will be provided with occupational training, and employment information and guidance in order to increase their job opportunities.  During project construction, laborers in vulnerable households will have priority in being employed for unskilled jobs.  The agency responsible for relocation shall do its best to aid and support the relocation of households falling into vulnerable groups.

4.4.7 Compensation Policy for Infrastructure and Ground Attachments

Affected special facilities will be reconstructed by the owner according to the original size, standard and function. Compensation fees for all affected ground attachments will be paid directly to proprietors at replacement cost.

39 5 Compensation Rates The compensation rates for different impacts of the project have been fixed according to the above legal framework, and by reference to the policies of the PRC, the Guangxi Government, the Laibin Municipal Government and the World Bankon resettlement.

5.1 Compensation Rates for Acquisition of Rural Collective Land The compensation rates for the collective land acquired for the project have been determined in accordance with the Land Administration Law of the PRC, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the Measures of Guangxi Zhuang Autonomous Region for the Implementation of the Land Administration Law of the PRC, the Notice of the General Office of the Laibin Municipal Government on Issuing the Supplementary Provisions on Compensation and Resettlement for Collective Land Acquisition and House Demolition in the Urban Area (LMGO [2009] No.196), the Notice of the General Office of the Laibin Municipal Government on Adjusting the Compensation Rates for Collective Land Acquisition and Ground Attachment Demolition in the Urban Area (LMGO [2010] No.160), and other applicable policies and regulations, and based on the information provided by LLRB, and the field survey. See Table 5-24. Table 5-24 Compensation Rates for Collective Land Acquisition Compensation Land type Unit Remarks rate (yuan) 1. Young crop compensation fees: collective Collective yuan/mu 30172 farmland 1,588 yuan/mu, fishpond 4,481 farmland yuan/mu, sugarcane 2,062 yuan/mu 2. If state-owned land is used according to law, Collective such land will be compensated for by reference to construction yuan/mu 27155 the local compensation rate for the same type of land collective land. Collective yuan/mu 17000 unused land

5.2 Compensation Rates for Permanent Occupation of State- owned Land The state-owned water surface and unused land occupied for the WE Project has been acquired by allocation, and houses on the affected state-owned industrial land and housing land will be compensated for in cash through appraisal. The state-owned land for entities and housing land, and houses thereon affected by the Hongshui River Project shall be compensated for in cash through market appraisal.

5.3 Compensation Rates for Temporary Land Occupation

According to the policies of the state, Guangxi and Laibin City on temporary land occupation, compensation fees for temporary land occupation include young crop/ground attachment compensation fees and land reclamation costs. The farmland temporarily occupied for the WE Project shall be compensated for based on the period of occupation and the annual output value of land; non-cultivated land shall be compensated for by reference to cultivated land. To reduce the impact of LA on young crops, the project will be constructed after harvesting or before sowing as the case may be, subject to a one month prior notice to affected farmers.

40 The Hongshui River Project does not involve temporary land occupation. See Table 5-25. Table 5-25 Compensation Rates for Temporary Land Occupation Young crop/ground attachment compensation fees (yuan/mu· Land reclamation costs Project Item year) (yuan/m2) Collective farmland Compensation rate for WE 2062 6 temporary land occupation Project Remarks Based on 2 years

5.4 Compensation Rates for Residential House Demolition Residential houses on collective land demolished for the WE Project and the Hongshui River Project will be compensated according to the Notice of the General Office of the Laibin Municipal Government on Adjusting the Compensation Rates for Collective Land Acquisition and Ground Attachment Demolition in the Urban Area (LMGO [2010] No.160), and the Notice of the General Office of the Laibin Municipal Government on Issuing the Measures for Compensation and Resettlement for Collective Land Acquisition and House Demolition in the Urban Area (LMGO [2008] No.45). Residential houses on state-owned land affected by the WE Project and the Hongshui River Project will be compensated for pursuant to the Notice of the Laibin Municipal Government on Issuing the Measures for Compensation and Resettlement for House Acquisition on State-owned Land (LMG [2011] No.69). According to the survey, demolished residential houses on collective and state- owned land will be compensated for different types of houses have been determined based on past projects (excluding land price), as shown in Table 5-26. The final compensation rate is based on market appraisal. Table 5-26 Compensation Rates for Residential House Demolition Compensation Item Unit Remarks rate (yuan/unit) 1) House compensation Masonry concrete m2 460 Masonry timber m2 310 Brick-tile m2 320 Earth timber m2 200 Simple m2 180 2) Other costs Moving subsidy Household 800 Based on the actual period, estimated Transition subsidy Month·m2 6 to be 6 months in this report

5.5 Compensation Rates for Demolition of Properties of Entities According to the compensation policies for non-residential properties of Laibin City, compensation for the demolition of non-residential properties in the WE Project and the Hongshui River Project include house compensation fees, compensation for losses from production or business suspension, etc. The enterprise (Xingbin Bean Product Factory) affected by the WE Project has gone bankrupt, and the properties to be demolished are dilapidated and have been abandoned, so no one will be affected. The production facilities of Laibin Dongtang Guibao Co., Ltd. affected by the Hongshui River Project have been relocated, and only its dormitories will be affected.The final compensation rate is based on market appraisal, as shown in

41 Table 5-27. Table 5-27 Compensation Rates for Demolition of Non-residential Properties Compensation rate Item Unit Remarks (yuan/unit) 1) House compensation Masonry concrete m2 460 Masonry timber m2 310 Brick-tile m2 320 Simple m2 180 2) Other costs Moving subsidy Household 800 Based on market Losses from production or appraisal business suspension due to property acquisition shall be Compensation for losses from production or business suspension compensated for at 5% of the compensation price for the acquired property (excluding decoration, attachments, etc.

5.6 Compensation Rates for Ground Attachments Affected special facilities will be compensated for or rebuilt as required according t the former function, size and standard. The WE Project will affect two telegraph poles, which have been relocated and are operating properly. These two telegraph poles will not be compensated for in consultation with their proprietor. Other ground attachments affected by this project will be compensated for at replacement cost. The Hongshui River Project will affect some trees beside the Hongshui River, and these trees are owned by the Laibin Municipal Forestry Bureau and will not be compensated for. See Table 5-28. Table 5-28 Compensation Rates for Ground Attachments Compensation rate Project Item Unit (yuan/unit) loquat yuan each 75 Fruit trees Chinese chestnut yuan each 75 WE Project Timber trees yuan each 20 Telegraph poles yuan each 800

5.7 Other Costs

See Table 5-29. Table 5-29 Rates of Other Costs No. Item Rate Basis Decree No.46 of the 1 Farmland occupation tax 30 yuan/m2 Guangxi Government 2 Land reclamation costs 7.5 yuan/m2 GRG [2000] No.39 3 LA management costs 2.1% of LA costs GRP [2001] No.250 4 Survey and design costs 3% of direct resettlement costs / 5 Administrative costs 5% of direct resettlement costs / 6 Skills training costs 1% of direct resettlement costs / 7 External M&E costs 0.5% of direct resettlement costs / 8 Contingencies 10% of total costs /

42 6 Production and Livelihood Restoration Programs for APs According to the Bank policy OP4.12, the resettlement objective of the WE Project and the Hongshui River Project is to ensure that the APs can receive full compensation for their losses, reasonable resettlement and satisfactory restoration, enable them to share the benefits of the project and assist them in temporary difficulties, so that their income level and standard of living, and the affected enterprises’ production capacity and profitability are improved or at least restored, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. According to the applicable policies and the consultation with the APs, LPMO has developed compensation and resettlement programs for the APs.

6.1 Permanent Acquisition of Collective Land and Resettlement Program

6.1.1 Impacts of Permanent Acquisition of Collective Land

Since the Hongshui River Project does not involve the acquisition of collective land, this analysis is for the WE Project only. 1. LA impact analysis 264.53 mu of collective land will be acquired for the WE Project, affecting 206 households with 746 persons. Cultivated land acquisition will occur in Mengcun and Qiaogui Villages only, where 108.27 mu of cultivated land will be acquired, affecting 32 households with 126 persons. Among these two villages, Mengcun Village is affected slightly with a land loss rate of 0.34% only, and Qiaogui Village is affected more seriously with a land loss rate of 40.27%. See Table 6-30. Based on the impact analysis, 3 households (9.38%) have a land loss rate of 40%-60%, 26 households (81.24%) have a land loss rate of 60%-80% and 3 households (9.38%) have a land loss rate of 80%-100%. See Table 6-31. Through an analysis of the households affected by LA in the WE Project, 14 households with 56 persons have been identified as seriously affected households (per capita cultivated area less than 0.3 mu after LA), accounting for 43.75% of all households affected by LA. These seriously affected households will enjoy priority in resettlement, employment training and endowment insurance. See Table 6-32. In sum, despite the relatively high impact rate of LA in the WE Project, since all the affected villages are located in the suburb, farmers’ main income sources are outside employment and doing business, LA will not affect their income greatly. The sub-district offices and village committees concerned will develop resettlement programs accordingly to protect the APs’ interests.

43 Table 6-30 Summary of Acquired Cultivated Land Population Affected population Per capita Average acquired Average Existing Per capita Acquired Impact cultivated cultivated area acquired Project Village cultivated cultivated cultivated level area after per household cultivated area HHs Population area (mu) area (mu) area (mu) HHs Population (%) LA (mu) (mu) per capita (mu) Mengcun 386 1553 2238 1.44 7.6 3 14 0.34 1.44 2.53 0.54 WE Qiaogui 58 205 250 1.22 100.67 29 112 40.27 0.73 3.47 0.90 Project Total / / / / 108.27 32 126 / / / /

Table 6-31 Land Loss Rate Analysis Land loss rate Project Village <40% 40%-60% 60%-80% 80%-100% Subtotal of AHs N Percent (%) N Percent (%) N Percent (%) N Percent (%) Mengcun 0 0 3 100.00 0 0.00 0 0.00 3 WE Project Qiaogui 0 0 0 0.00 26 89.66 3 10.34 29 Total 0 0 3 9.38 26 81.24 3 9.38 32

Table 6-32 Households Affected Seriously by LA Households affected seriously by LA Project Village Per capita cultivated area less than 0.3 mu after LA HHs Population Proportion to all AHs (%) Mengcun 0 0 0 WE Project Qiaogui 14 56 48.28 Total 14 56 43.75

44 2. Income loss analysis After LA in the WE Project, the average annual income loss of Mengcun Village will be 651.43 yuan per capita or 3,040 yuan per household, and the average annual income loss of Qiaogui Village will be1,078.61 yuan per capita or 4,165.66 yuan per household. 29 households will have an annual income loss of 2,000-4,000 yuan, accounting for 90.63%, and 3 households will have an annual income loss of 4,000-6,000 yuan, accounting for 9.37%. See Table 6-33 and Table 6-34. Table 6-33 Summary of Income Losses of APs 1 Average income loss Affected population Per capita income loss per household Project Village Per capita Acquired Income HHs Population acquired Income loss area per loss area household Mengcun 3 14 0.54 651.43 2.53 3040 WE Qiaogui 29 112 0.90 1078.61 3.47 4165.66 Project Total 32 126 / / / /

Table 6-34 Summary of Income Losses of APs 2 Village Mengcun Qiaogui Total 2,000 ≤income HHs 3 26 29 Income loss < 4,000 Percent (%) 100 89.66 90.63 loss 4,000 ≤ income HHs 0 3 3 loss < 6,000 Percent (%) 0 10.34 9.37 Subtotal of AHs 3 29 32

After LA, the income loss rate of Mengcun Village will be 9.72% and that of Qiaogui Village 16.59%. Since the project area of the WE Project is around Xingbin District and influenced strongly by the urban economy, the proportion of agricultural income to gross income is decreasing, outside employment has become an important income source gradually, and the reliance of farmers on land is dropping, so LA in the WE Project will not affect farmers’ livelihoods fatally. See Table 6-35. Table 6-35 Loss Rate of Per Capita Income of Farmers Per capita net Per capita loss of Per capita income Project Village income of rural agricultural income loss rate (%) residents (yuan) (yuan) Mengcun 6700 651.43 9.72% WE Project Qiaogui 6500 1078.61 16.59%

6.1.2 Resettlement Program for Permanent Acquisition of Collective Land

In November 2011 and April-May 2012, the task force held FGDs in all villages affected by LA and HD in the WE Project to discuss resettlement programs, and determined the resettlement modes of direct cash compensation, employment training and social security. Based on FGDs and interviews, all AHs require cash compensation without land reallocation. APs affected by varying degrees will be resettled by LPMO in different modes. In addition to cash compensation, all 32 AHs in the WE Project may participate in local employment training and job recommendation for free;and the 14 seriously affected households (per capita cultivated area less than 0.3 mu after LA) may be included directly in local social security for LEFs; the 3 households losing all land will receive commercial properties from the government for free, and be granted

45 a transitional living subsidy on a monthly basis during the transition period. See Table 6-36. Table 6-36 Summary of Resettlement Modes HHs Project Village Cash Employment Social Living Commercial compensation training security subsidy properties Mengcun 3 3 0 0 0 Qiaogui 29 29 14 3 3 WE Project Total 32 32 14 3 3 Coverage 100 100 43.75 9.38 9.38 (%)

1. Direct cash compensation Since all the affected villages are located in the suburb where land resources are limited, the AHs can hardly obtain new land through land reallocation. Therefore, in the WE Project, through consultation with the affected rural collective economic organizations and the AHs, land compensation fees and resettlement subsidies will be paid fully to the AHs so that they can take on agricultural or nonagricultural income-generating activities. In addition, LPMO has promised that the compensation rates for LA in the WE Project will be sufficient to cover local social security for LEFs so that the APs will obtain old-age support. 2. Social security for LEFs According to interviews with representatives of the APs and the departments concerned of Laibin City, the applicable policy of Guangxi Zhuang Autonomous Region applies to social security for LEFs in Laibin City. Since there is no adjustment mechanism for pension rates, this social security is unattractive to LEFs. According to the Decisions of the Guangxi Zhuang Autonomous Region Government on Improving the Basic Endowment Insurance System for Enterprise Employees (I) (GRG [2006] No.54), LEFs in Laibin City may participate in the basic endowment insurance for urban enterprise employees, and will receive a pension of 1,200 yuan/month.

Institutional FGD on resettlement for the WE Project Date: July 18, 2012 Venue: meeting rooom of the municipal government Participants: Bank experts, LGWTDI, housing construction commission, PMO, labor and social security bureau, Guangxi University of Finance and Economics, Hohai University, etc. 1) About endowment insurance for LEFs: Document GRGO [2008] No.18 applies to Laibin City. Since there is no adjustment mechanism for pension rates, this social security is unattractive to LEFs. 2) By reference to the practices of Nanning and Liuzhou, farmers with less than 0.3 mu of land after LA in Laibin City will be treated as urban residents, and may participate in the basic endowment insurance for urban employees voluntarily. 3) Supplementary payment measures: After supplementary payment of premiums for 15 years, a farmer will receive a pension of 1,200 yuan/month, which is subject to adjustment from year to year.

3. Resettlement in commercial properties According to Document LMGO [2010] No.196, if any AH’s land is fully acquired in the WE Project, it will be granted business premises at a building area of 40 m2 per capita (including shared area) by the municipal government for free, including 20 m2 on the first floor for commercial use and 20 m2 on the second floor in a mixed commercial and residential building. Resettlement housing will be constructed as multi-storied or high-rise residential buildings by a construction agency appointed by the municipal government. (See Section 6.2 for details of the resettlement communities.) Any excess size shall be paid for at the appraised price in the compensation

46 agreement for acquisition, and any deficient size shall be compensated for at the appraised price. According to the survey, the rental of a commercial store of around 40 m2 in Xingbin District is 1,000-2,000 yuan/month (source: http://lb.58.com/shangpu), so a commercial property will bring rental income of over 12,000 yuan/year to each resettled person, much higher than the per capita agricultural income of 1,457.68 yuan/year before LA. 4. Living subsidy According to the Notice of the Laibin Municipal Government on Issuing the Interim Measures on Transitional Living Security for Land-expropriated Farmers in the Main Urban Area (LMG [2011] No.49), except compensation fees for LA, the social security department will grant a transitional living subsidy at 250 yuan per capita per month to the LEFs in the WE Project until 6 months after the issue of the notice of delivery of commercial properties used for resettlement. When applying for transitional living subsidy, LEFs shall also apply for minimum living security. Those eligible shall be included in minimum living security for urban residents according to law. 5. Skills training Since all the affected villages are near the urban area of Laibin City, many villagers live on selling small commodities, outside employment and house lease, so the APs can obtain other job opportunities easily to restore their income. The owner of the WE Project will provide employment information and job recommendation services to them, and make jobs created by the project first available to local labor. According to Document LMGO [2011] No.239, all LEFs wishing to get employed in the urban planning area of Laibin City may attend training organized by the municipal labor and social security bureau in accordance with the Administrative Measures for Appointed Vocational Skills Training Agencies of Guangxi Zhuang Autonomous Region. In order to encourage LEFs to get employed independently and flexibly, not only vocational skills training is offered to LEFs, there will also be subsidies for automobile drivers, farm vehicle drivers, electricians, welders, etc. from special employment funds in accordance with the Administrative Measures for Vocational Skills Training Subsidies of Guangxi Zhuang Autonomous Region. LEFs may apply for training subsidies with the municipal labor and social security bureau. For those in financial difficulty, certification costs may be advanced by appointed training agencies subject to individual application. See Table 6-37 . Table 6-37 Employment Training Program Frequency Time-times Project District Scope Provided by (per year) trained 4 200 Agricultural skills training, pre-job Municipal labor and WE Xingbin training and vocational social security Project 2 200 skills training bureau (nonagricultural)

6.2 Resettlement Program for Permanent Occupation of State- owned Land

(1) WE Project 94.78 mu of state-owned land will be occupied permanently for the WE Project, including 48.48 mu of river flat, 11.4 mu of water surface, 1.7 mu of industrial land, 4.64 mu of housing land and 28.8 mu of unused land. According to the survey, 3 households with 14 persons affected by state-owned land occupation in the WE Project have grown 15 musas, which will be compensated for by LPMO. The 1.7 mu of industrial land occupied by the WE Project is owned by Xingbin Bean Product Factory, and will be compensated for along with the demolished

47 properties of this factory through market appraisal. The 4.64 mu of housing land occupied by the WE Project will be compensated for along with the demolished urban residential houses thereon through market appraisal. (2) Hongshui River Project The Hongshui River Project will permanently occupy 143.91 mu of state-owned land, including 134.1 mu of land for entities (involving 3 enterprises and 4 public institutions), and 9.81 mu of housing land. The state-owned land occupied by this project will be compensated for along with the demolished houses thereon through market appraisal.

6.3 Resettlement Program for Demolition of Residential Houses

The residential houses demolished for the WE Project have a total area of 45,273.3 m2, affecting 113 households with 419 persons, including rural residential houses of 39,273.3 m2, affecting 93 households with 339 persons in Gusan, Shacun and Changling Villages, and urban residential houses of 6,000 m2, affecting 20 households with 80 persons in one independent building in Chengbei Sub-district, Xingbin District. Urban residential houses of with a total area of 16,574.04 m2 will be demolished for the Hongshui River Project, affecting 60 households with 354 persons. The residential houses demolished for the Hongshui River Project have a total area of 16,574.04 m2, affecting 60 households with 354 persons. (1) Cash compensation and resettlement  Rural residential houses According to Documents LMGO [2008] No.45 and LMGO [2009] No.196, for rural residential houses demolished for the WE Project, the demolisher shall compensate displaced persons as stipulated, and displaced persons may choose cash compensation, property swap or resettlement on housing land. If the new house of any displaced person is not completed after the date of the LA announcement, the displaced person shall stop construction immediately, and its house will be compensated for based on the amount of completion and at replacement cost. If a second or further house (except self-purchased commercial housing) of a displaced person is demolished, only house compensation fees, compensation fees for the occupied land, a moving subsidy, an early moving reward and a transition subsidy for 3 months shall be paid, while no housing land shall be provided for resettlement and no resettlement subsidy shall be paid. In case of cash compensation, compensation fees for the demolished house, a resettlement subsidy, a moving subsidy, an early moving reward and a transition subsidy for 3 months shall be paid. For an industrial property, compensation for losses from production or business suspension shall also be paid. The resettlement subsidy shall be based on the building area of the demolished house.  Urban residential houses Houses on state-owned land demolished for the WE Project and the Hongshui River Project shall be compensated for pursuant to Document LMG [2011] No.69, if the affected person chooses cash compensation, the amount of compensation for the acquired house will be appraised by a qualified real estate appraisal agency. A subsidy of 15% shall be added to house compensation fees (excluding decoration, attachments, etc.). If the new house of any affected person is not completed after the date of the LA announcement, the displaced person shall stop construction immediately, and its house will be compensated for based on the amount of completion and at replacement cost. (2) Property swap  Rural houses If the displaced household chooses property swap, it will receive a moving

48 subsidy, an early moving reward, a transition subsidy (the transition subsidy will be paid until resettlement housing is delivered and will not be paid if the acquirer provides transitional housing), and commercial or affordable housing of not less than masonry concrete structure and ordinary decoration for resettlement. The building area of resettlement (resettlement size for short) is based on the legally recognized building area of the former house (former size for short) and the number of displaced persons to be resettled as follows: 1) If a household has one or two members and the former size is less than 40 m2, the resettlement size shall be 40 m2; if the former size is 40-80 m2, the resettlement size shall be equal to the former size; if the former size exceeds 80 m2, the resettlement size shall be 80 m2. 2) If a household has 3 members and the former size is less than 50 m2, the resettlement size shall be 50 m2; if the former size is 50-110 m2, the resettlement size shall be equal to the former size; if the former size exceeds 110 m2, the resettlement size shall be 110 m2. 3) If a household has 4 or more members and the former per capita building area is less than 15 m2, the per capita resettlement size shall be 15 m2; if the per capita former size is 15-35 m2, the resettlement size shall be equal to the former size; if the per capita former size is 35 m2 or more, the per capita resettlement size shall be 35 m2. In case of property swap, if the resettlement size is equal to the former size, no price difference shall be paid; if the resettlement size exceeds the former size, the excess size shall be paid for at cost price; if the former size exceeds the resettlement size, the excess size shall be paid for by the displacer at the unit price of affordable housing in the same area of Laibin City.  Urban houses If the affected household chooses property swap, it may exchange its house for a house in any reconstructed area, nearby area or non-local area. 1) If the resettlement building is multi-storied, the demolished house shall be exchanged for resettlement housing at a building area ratio of 1:1.1; 2) If the resettlement building is high-rise, the demolished house shall be exchanged for resettlement housing at a building area ratio of 1:1.25. If the affected person chooses property swap, he/she may choose from a number of housing sizes. Any excess size shall be paid for at the appraised price in the compensation agreement for acquisition, and any deficient size shall be compensated for at the appraised price. If two or more houses of the affected person are acquired, the combined size shall be calculated for the purpose of resettlement. In order that displaced households are permanently resettled, the Laibin Municipal Government has purchased commercial housing from developers and planned 10 resettlement communities available for resettlement, and eligible households affected by the demolition of rural and urban residential houses may be resettled in the resettlement communities or commercial housing voluntarily. 453 unoccupied apartments purchased by the Laibin Municipal Government are currently available for resettlement, including one with one bedroom and one living room (41 m2), 15 with two bedrooms and one living room (94 m2 each), 57 with two bedrooms and two living rooms (96 m2 each), 314 with 3 bedrooms and two living rooms (89-140 m2 each), 30 with 4 bedrooms and two living rooms (131 m2 each) and 36 duplex apartments (200 m2 each); 678 apartments purchased by the government will be delivered soon, including 140 with two bedrooms and two living rooms and 538 with 3 bedrooms and two living rooms. By the end of 2012, the government will have 1,830 unoccupied disposable apartments, with a total size of 192,600 m2, which will accommodate 1,830 households with 4,817 persons based on 40 m2 per capita; commercial properties with a total area of 7,200 m2 in the 1# resettlement community have been delivered, which will accommodate 179 persons based on 40 m2 per capita. 450 apartments will be reserved for transition in other projects in Gusan Village, while the other apartments may be used for permanent resettlement. Subjects of permanent resettlement must registered permanent rural residents

49 within the village collective economic organization as of the LA and HD announcement published by the municipal government, and displaced persons having entered into a contract and applying for permanent resettlement. According to Article 4 of Document LMG [2009] No.196, if the size of resettlement housing exceeds the entitled resettlement size, the excess size shall be purchased at market price by the resettled household; if the size of resettlement housing is less than the entitled resettlement size, the deficient size shall be purchased by the government at market price. If the size of resettlement housing exceeds the entitled resettlement size, the resettled household must pay for the excess size to receive resettlement housing. If it fails to pay within 30 days, it will not be entitled to resettlement housing

50 Table 6-38 Summary of Resettlement Communities Resettlement No. Site of HD Introduction Progress of construction community Used to resettle displaced households from Xisan Village, with a planned land area of Two buildings put into use in July 1 Xisan Village 1# 50.83 mu, including 11 resettlement buildings, building area of resettlement housing 2011, 4 at the end of 2011 and 4 in 145,730 m2 and that of commercial properties 23,723 m2 June 2012 Used to resettle displaced households from Gusan Village, with a planned land area of Gusan Under construction, available by 2 2# 111.46 mu, accommodating 1,997 households with 7,988 persons, with 436 apartments Village the end of 2012 in total Modong With a planned land area of 200 mu, accommodating 2,583 households with 14,333 Under construction, available by 3 3# Village persons August 2012 Changling With a planned land area of 314 mu, accommodating 750 households with 3,115 Under construction, available by 4 4# Village persons. February 2013 Changmei LA and HD has been completed to 5 5# With a planned land area of 275 mu Village date. Pingxi Used to resettle displaced households from Pingxi Community, with a planned land area Land approval and LA have been 6 6# Community of 75 mu completed to date. Laihua With a planned land area of 70 mu, building area of resettlement housing 116,000 m2 LA and HD has been completed to 7 Investment 7# and that of commercial properties 94,000 m2 date. Zone Shacun Used to resettle displaced households from Shacun Village, with a planned land area of Under construction, available by 8 8# Village 60 mu, accommodating 1,350 households with 5,404 persons. February 2013 Laibin LA and HD has been completed to 9 Educational 9# With a planned land area of 125 mu date. Park Industrial LA and HD has been completed to 10 10# With a planned land area of 56 mu park date.

51 (3) Resettlement on housing land In case of resettlement on housing land, compensation fees for the demolished house, compensation fees for the land occupied by the demolished house, a moving subsidy, an early moving reward and a transition subsidy for not more than one year shall be paid. The displaced household must apply for housing land of 25 m2 per capita and not more than 100 m2 per household at cost price to construct a new house. The three supplies (water, electricity and traffic) and leveling of such housing land shall be provided by the land user. IA will coordinate with relevant departments to provide housing land.

6.4 Resettlement for Demolition of Properties of Entities (1) WE Project The WE Project will affect one enterprise (Xingbin Bean Product Factory), with a demolition area of 1,130 m2. This factory has gone bankrupt, and the properties to be demolished are dilapidated and have been abandoned. Since this factory is out of production, no one will be affected and no resettlement will be involved. LPMO has agreed with the head of this factory to compensate for its demolished properties at appraised price. (2) Hongshui River Project The Hongshui River Project will affect 3 enterprises (Laibin Dongtang Guibao Co., Ltd., Laibin Shipping Company and its sand yard) with 558 employees, and 4 public institutions (Laibin Shipping Office, Laibin Maritime Office, Xingbin District Shipping Administration Office and dormitory area, the dormitory area of Liuzhou Channel Administration Bureau Laibin Branch) with 112 employees. Total demolition area is 65,326.09 m2, including 64,561.25 m2 in masonry concrete structure, 214.84 m2 in masonry timber structure and 550 m2 in brick-tile structure. According to Document LMG [2011] No.69, non-residential properties of administrative agencies or public institutions acquired shall be subject to cash compensation or non-local resettlement. Any acquired productive property of an enterprise shall be compensated for as follows: 1) If the affected enterprise chooses cash compensation, the acquired property shall be appraised by a qualified agency to determine its amount of compensation. A subsidy of 15% shall be added to property compensation fees (excluding decoration, attachments, etc.); 2) If the affected enterprise chooses property swap, it shall be relocated to the municipal industrial park and be allocated a standard industrial building of the same size as its former property; 3) Relocation and installation costs for movable equipment and facilities shall be paid at a time at market price. Immovable equipment and facilities shall be compensated for at replacement cost in consideration of depreciation and wastage; 4) Losses from production or business suspension due to property acquisition shall be compensated for at 15% of the compensation price for the acquired property (excluding decoration, attachments, etc.); and 5) Employees to be dismissed due to acquisition shall be granted a living subsidy for the remaining period of the labor contract but not more than 6 months. LPMO has agreed with the heads of the affected entities to compensate for their demolished properties at appraised price. 1) Laibin Dongtang Guibao Co., Ltd. was relocated to Zhenglong Xiang, Xingbin District in 2009, and only its dormitories remain in the project area. 420 employees will be affected. This company is constructing a new dormitory area in Zhenglong Xiang, The demolished workers’ dormitory will be compensated for in cash at appraised price.and the affected employees will receive housing subsidies during the construction period.

2) 138 employees of Laibin Shipping Company and its sand yard will be affected. Since this company is out of operation, its affected employees will be included in the reemployment program of the Laibin Municipal Government and

52 provided with public welfare jobs, and have priority in receiving unskilled jobs created by the project.

6.5 Restoration Program for Temporary Land Occupation 192.07 mu of land will be occupied temporarily for the WE Project. The mode of restoration of the temporarily occupied land will be determined by representatives of AHs, the village collective and the implementing agencies together. To minimize the impact of temporary land occupation, the key principles of restoration are as follows:  The AHs will have priority. Thus, not only the APs will receive job opportunities and increase their family income, but also the quality of land restoration will be ensured. If the AHs and the village collective are unwilling to restore the occupied land themselves, the land will be reclaimed by the implementing agencies.  Strict measures will be taken to protect surface soil during construction to avoid irrecoverable impacts. During excavation, surface soil (recommended thickness 30-50cm) will be gathered and piled separately, and water loss and soil erosion prevention measures taken. After construction, subsurface soil will be backfilled first, then surface soil laid evenly on the surface, and the site leveled to mitigate the impact on farmland quality. Land that hardens temporarily during construction will be plowed immediately after construction to restore its looseness.  For some barren land and old borrow pits, the construction agency may fill fertile channel silt to turn them into cultivated land and increase land resources. The Hongshui River Project does not involve temporary land occupation.

6.6 Restoration Program for Affected Vulnerable Groups

In the affected population of the WE Project, 8 households with 14 persons fall into vulnerable groups, in which 3 households with 8 persons receive minimum living security, and there are 5 five-guarantee households with 6 persons. The Hongshui River Project involves no vulnerable group.  Households receiving minimum living security (1) The vulnerable households should be assisted in moving; (2) All AHs will receive livelihood training and priority in employment (working outside, working in project construction, etc.); (3) They will receive a government subsidy.  Five-guarantee households (1) The village collective will subsidize five-guarantee households every month; (2) Their new-type rural cooperative medical care fees shall be paid by their collectives; (3) The government will provide employment training and job opportunities to them. During resettlement, according to Document LMG [2011] No.69, any affected household eligible for housing security, the municipal government shall offer housing security first. (1) If such household is eligible for low-rent housing security, low-rent housing shall be offered first; (2) If such household is eligible for purchasing affordable housing, it shall purchase affordable housing first; (3) In case of property swap, if the building area of the resettlement house exceeds 1.1 times (multi-storied resettlement building) or 1.25 times (high-rise resettlement building) of that of the acquired house, and is not more than 50 m2, and such household has no other house in the city, a resettlement house of 45-50 m2 will be offered, and any excess size may be purchased at cost price; (4) If a low-income household chooses property swap, if the building area of the

53 resettlement house exceeds 1.1 times (multi-storied resettlement building) or 1.25 times (high-rise resettlement building) of that of the acquired house, and is not more than 50 m2, and such household has no other house in the city, a resettlement house of 45-50 m2 will be offered without making up any price difference. A low-income household means a household entitled to minimum living security.

6.7 Protection of Women’s Rights and Interests Women will participate fully in resettlement activities through information disclosure and meetings of the village collective; they will have the same rights as men in receiving compensation, being employed for the project and attending training. In addition, the following measures will be taken to ensure women’s rights and interests: (1) During project construction, a certain number of women (at least 20% of unskilled labor) will obtain unskilled job opportunities. In addition, women will receive equal pay for equal work like men; (2) Skills training will be first made available to affected female laborers to ensure that their economic status will not be lowered; (3) Affected women will receive relevant information during resettlement and participate in public consultation and resettlement. The compensation agreement must be signed by a coupled.

6.8 Restoration Program for Ground Attachments

The WE Project will affect two telegraph poles, which have been relocated and are operating properly. These two telegraph poles will not be compensated for in consultation with their proprietor. After proprietors of affected ground attachments have been compensated by the implementing agencies, they will be rebuilt by owners. In addition, restoration measures for demolished facilities must be planned and arranged in advance and suited to local conditions, so that such measures are safe, efficient, timely and accurate, and their adverse impact on nearby residents is minimized. The Hongshui River Project will affect some trees beside the Hongshui River, and these trees are state-owned and will not be restored.

54 7 Organizational Structure

7.1 Organizational Setup

To ensure successful resettlement as desired, a systematic organizational structure must be established during project implementation in order to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that requires the assistance and cooperation of different departments, the departments concerned will participate in and support resettlement implementation. Each affected township or village has one or two chief leaders responsible for resettlement. (1) WE Project The agencies responsible for LA and HD in the WE Project are:  LPMO  LGWTDI  LLRB  Xingbin District House Demolition Management Office  Township/sub-district resettlement offices  Village/community committees  Design agency  External M&E agency

Project Leading Group

LLRB, Xingbin LPMO Internal Design District House agency Demolition monitori Management ng Office LGWTDI External M&E ag ency

Resettlement agencies I n

Allocatio f Urban Rural ho LA r a

n of stat house use dem s e t e-owne r demolit olition u d land c ion t u r

Figure 7-5 Resettlement Organizational Structure of the WE Project

(2) Hongshui River Project The agencies responsible for land occupation and HD in the Hongshui River Project are:  LPMO  FPDO  LLRB  Xingbin District House Demolition Management Office  Township/sub-district resettlement offices  Village/community committees  Design agency  External M&E agency

55 Project Leading Group

LLRB, Xingbin LPMO Internal Design District House monitori agency Demolition ng Management Office FPDO External M&E ag ency

Resettlement agencies I n f

Allocation r

Urban hous Withdrawal of a s

of state-o e e demolition the right to use t r u

wned lan state-owned c t d u

land r

Figure 7-6 Resettlement Organizational Structure of the Hongshui River Project

7.2 Organizational Responsibilities  LPMO Responsible mainly for organizing the resettlement of the project, formulating policies on resettlement activities of the project, and coordinating relations among the resettlement agencies at all levels  LGWTDI/FPDO Responsible mainly for handling day-to-day affairs in resettlement planning and implementation, and exercising the management, planning, implementation, coordination, supervision and monitoring functions of resettlement as the project management agency ① Formulating the LA, HD and resettlement policies for the project; ② Entrusting the design agency to define the project area, conduct DMS and save such data; ③ Applying for the license for planning of land use and the license for land used for construction; ④ Giving operational training to the key resettlement officials of the PMO; ⑤ Organizing and coordinating the preparation of the RAP; ⑥ Responsible for the management and disbursement of the resettlement funds, and supervising the use thereof; ⑦ Directing, coordinating and supervising resettlement activities and their progress; ⑧ Directing and assisting in the disposition of complaints; ⑨ Taking charge of and inspecting internal monitoring, and preparing LA, HD and resettlement progress reports; ⑩ Selecting the external M&E agency and assisting in external monitoring activities  LLRB ① Carrying through the state policies and regulations on construction land; ② Participating in the review of the compensation rates for LA and attachments; ③ Going through the LA approval formalities; ④ Participating in the socioeconomic survey; ⑤ Participating in RAP preparation and review; ⑥ Issuing the pre-examination report on construction land;

56 ⑦ Directing, coordinating and supervising LA and resettlement activities; ⑧ Handling conflicts and issues arising from LA and land allocation  Xingbin District House Demolition Management Office ① Participating in the socioeconomic survey; ② Developing resettlement programs in consultation with the entities affected by LA and HD, and preparing the RAP together; ③ Approving the relevant formalities; ④ Managing LA, HD and resettlement information; ⑤ Directing, coordinating and supervising LA and resettlement activities; ⑥ Coordinating and handling conflicts and issues arising from its work.  Township/sub-district resettlement offices The resettlement office of a township is headed by the leader responsible of the township, and composed of key officials of the land and resources department and the affected villages. Their main responsibilities are: ① Participating in the survey of the project, and assisting in the preparation of the RAP; ② Organizing public participation, and propagandizing the resettlement policies; ③ Implementing, inspecting, monitoring and recording all resettlement activities within the township; ④ Responsible for the disbursement and management of land compensation fees; ⑤ Supervision land acquisition, occupation and restoration; ⑥ Reporting LA, HD and resettlement information to the district/county resettlement office; ⑦ Coordinating and handling conflicts and issues arising from its work.  Village/community committees The resettlement working team of a village committee or village group is composed of its key officials. Its main responsibilities are: ① Participating in the socioeconomic survey and DMS of the project; ② Organizing public consultation, and propagandizing the policies on LA and HD; ③ Organizing the implementation of agricultural and nonagricultural resettlement activities; ④ Reporting the APs’ opinions and suggestions to the competent authorities; ⑤ Providing assistance to displaced households with difficulties  Design agency At the planning and design stage, it will survey the physical indicators of LA and HD, environmental capacity, usable resources, etc. accurately, and assist the governments in the project area in formulating resettlement programs, preparing budgetary investment estimates for compensation for LA and HD, and drawing the relevant drawings. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the owner timely, make design disclosure to the PMOs of all levels, assist in the implementation of the relocation and resettlement for production of the APs, and improve the resettlement programs based on the practical situation.  External M&E agency LGWTDI and FPDO will employ a qualified M&E agency as the external resettlement monitoring agency. Its main responsibilities are: ① Observing all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the resettlement results and the social adaptability of the APs, and submitting resettlement M&E reports to LPMO and the Bank; and ② Providing technical advice to LPMO in data collection and processing.

57 7.3 Staffing In order to ensure the successful implementation of the resettlement work, and strengthen communication, LPMO, LGWTDI, FPDO and other resettlement implementing agencies have been provided with full-time staff. See Table 7-39. Table 7-39 Full-time Staff of Resettlement Agencies Resettlement agency Workforce Composition Project Leading Group 2 Civil servants LPMO 3 Civil servants LGWTDI 2 Engineers FPDO 2 Civil servants, technicians LLRB 6 Civil servants, technicians Xingbin District House Demolition Management 6 Civil servants, technicians Office Design agency 2 Engineers Resettlement and social expert External M&E agency 4 s Total 25

7.4 Measures to Strengthen Institutional Capacity  Before RAP implementation, the LA, HD and resettlement staff will be trained on the Bank’s operational policy, regulations on LA and HD, and resettlement implementation management to improve their professional proficiency and hands-on skills.  At the implementation stage, backbone resettlement staff will pursue studies, pay visits to other projects and attend operation training. In addition, to increase the employment rate of APs, they will be provided with skills training irregularly.  Provide adequate financial and technical support to improve working efficiency.  Define the responsibilities and scope of duty all resettlement agencies, and strengthen supervision and management.  Establish a resettlement information management system and strengthen information feedback to ensure a smooth information flow, and leave major issues to the Project Leading Group.  Strengthen the reporting system and internal monitoring, and solve issues timely.  Strengthen external M&E; the external M&E agency should point out existing issues and propose solutions timely.  Resettlement officials and staff will be organized for training, and the APs will be given skills training. See Table 7-40. Table 7-40 Overall Resettlement Training Program Budget (0,0 No. Scope of training Trainees Time Location 00 yuan) Resettlement learning tour of Backbone staff of P 1 One session At home 10 Bank projects MO Resettlement operational traini Backbone staff of P 2 Once a year At home 5 ng MO Resettlement operational traini 3 Resettlement staff Once a year At home 5 ng Laibin 4 Skills training for APs APs Irregular 20 City

58 8 Resettlement Budget and Funding Sources

8.1 Budget

All costs incurred during LA and resettlement will be included in the general budget. The resettlement costs of the WE Project include compensation fees for permanent and temporary land occupation, HD and ground attachments, as well as management costs, training costs and contingencies, etc. The resettlement costs of the Hongshui River Project include compensation fees for permanent land occupation and HD. The total investment in resettlement of the WE Project is 42,584,400 yuan, in which the costs for acquisition of rural collective land are 7,830,500 yuan (18.39%), costs for withdrawing the right to use of state-owned land 2,859,700 yuan (6.72%), costs for temporary land occupation 396,000 yuan (0.93%), demolition costs of rural residential houses 15,637,100 yuan (36.72%), demolition costs of urban residential houses 2,992,000 yuan (7.03%), costs for demolition of properties of entities 203,400 yuan (0.48%), compensation fees for attachments 411,300 yuan (0.97%), taxes 7,996,000 yuan (18.78%) and contingencies 4,258,400 yuan (10%). The total investment in resettlement of the Hongshui River Project is 50,767,300 yuan, in which the costs for withdrawing the right to use of state-owned land are 4,342,100 yuan (8.55%), demolition costs of urban residential houses 7,443,700 yuan (14.66%), costs for demolition of properties of entities 29,940,800 yuan (58.98%), other costs 3,964,000 yuan (7.81%) and contingencies 5,076,700 yuan (10%). See Table 8-41 for the estimated resettlement costs and Appendix 2 for the detailed resettlement budget. Table 8-41 Resettlement Budget Amount (0,000 Project No. Item Percent (%) Remarks yuan) WE Acquisition of rural collective 1 783.05 18.39% Project land 1.1 Collective farmland 627.04 14.72% Compensation fees for LA 595.69 13.99% Compensation fees for young 31.35 0.74% crops 1.2 Collective construction land 112.15 2.63% 1.3 Unused land 43.86 1.03% Withdrawal of the right to use 2 285.97 6.72% state-owned land 3 Temporary land occupation 39.60 0.93% Demolition of rural residential 4 1563.71 36.72% houses Masonry concrete 1068.09 25.08% Masonry timber 102.55 2.41% Brick-tile 300.13 7.05% Earth timber 4.77 0.11% Simple structure 57.17 1.34% Transition subsidy 23.56 0.55% Moving subsidy 7.44 0.17% Demolition of urban 5 299.20 7.03% residential houses Masonry concrete 276.00 6.48% Based on 6 Transition subsidy 21.60 0.51% months Moving subsidy 1.60 0.04%

59 Amount (0,000 Project No. Item Percent (%) Remarks yuan) Demolition of properties of 6 20.34 0.48% entities Simple structure 20.34 0.48% 7 Ground attachments 41.13 0.97% Fruit trees 30.14 0.71% Timber trees 8.83 0.21% Telegraph poles 2.16 0.05% Subtotal of Items 1-7 3033 71.22% 8 Survey and design costs 91.37 2.15% 9 External M&E costs 15.23 0.36% 10 Administrative costs 152.28 3.58% 11 Training costs 30.46 0.72% 12 Farmland reclamation costs 98.76 2.32% 13 Farmland occupation tax 395.06 9.28% 14 LA management costs 16.44 0.39% Subtotal of Items 8-14 799.60 18.78% 15 Contingencies 425.84 10.00% Total 4258.44 100.00% Withdrawal of the right to use 1 434.21 8.55% state-owned land Demolition of urban 2 744.37 14.66% residential houses Masonry concrete 661.88 13.04% Masonry timber 67.74 1.33% Based on 6 Transition subsidy 9.94 0.20% months Moving subsidy 4.80 0.09% Demolition of properties of 3 2994.08 58.98% Hongsh entities ui River Masonry concrete 2969.82 58.50% Project Masonry timber 6.66 0.13% Brick-tile 17.60 0.35% Subtotal of Items 1-3 4172.65 82.19% 4 Survey and design costs 125.18 2.47% 5 External M&E costs 20.86 0.41% 6 Administrative costs 208.63 4.11% 7 Training costs 41.73 0.82% Subtotal of Items 4-7 396.40 7.81% 8 Contingencies 507.67 10.00% Total 5076.73 100.00%

8.2 Annual Investment Plan An annual investment plan has been prepared according to the progress of LA and HD of the WE Project, as shown in Table 8-42. Table 8-42 Annual Investment Plan Project Year 2011 2012 2013 2014 Total Amount 638.77 1618.21 1575.62 425.84 4258.44 WE Project (0,000 yuan) Percent (%) 15 38 37 10 100

60 Amount Hongshui / / 3046.04 2030.69 5076.73 (0,000 yuan) River Project Percent (%) / / 60 40 100

8.3 Resettlement Funding Sources According to the project schedule, construction funds are from domestic and foreign bank lending, and fiscal appropriation. Resettlement funds are from local counterpart funds (70%) and raised by the project owner (30%). The Hongshui River Project is financed by domestic counterpart funds, in which special funds of the Ministry of Water Resources account for 80%, and local (municipal and district) fiscal funds account for 20%.

8.4 Management and Disbursement of Resettlement Funds

8.4.1 Fund Flow

To ensure that compensation fees for resettlement are paid timely and fully to the APs according to the compensation policies and rates specified in the RAP, the disbursement procedure of the WE Project is as follows: (1) WE Project The Laibin Municipal Finance Bureau and LGWTDI disburse resettlement fees to the resettlement implementing agencies—Xingbin District House Demolition Management Office which deposit compensation fees for HD, land compensation fees, resettlement subsidies and young crop compensation fees into a bank or credit cooperative according to the LA and HD agreement; the bank or credit cooperative will pay such fees directly to the affected villages or individuals; compensation fees for residential houses will be paid to the APs; compensation fees for infrastructure and attachments will be paid to relevant entities or individuals. Fund use programs so determined will be submitted to LGWTDI for approval and to LPMO for reference. The fund flow of the WE Project is shown in Figure 8-7.

Local counterpart fu Funds raised by nds the project owner

LLRB Xingbin District House Demolition Management Office Bank or credit cooperati ve H H A t o o t c a c u u t t c s s e e r h e e d d i m e h h

b t b o o e o y y l l n d d r

s H L s s t

A p D a a r f f o f f e e p

61 Figure 8-7 Disbursement Process of Resettlement Funds

(2) Hongshui River Project The Laibin Municipal Finance Bureau and FPDO disburse resettlement fees to the resettlement implementing agencies—Xingbin District House Demolition Management Office and LLRB, which deposit compensation fees for HD, land compensation fees, resettlement subsidies and young crop compensation fees into a bank or credit cooperative according to the LA and HD agreement; the bank or credit cooperative will pay such fees directly to the affected villages or individuals; compensation fees for residential houses will be paid to the APs; compensation fees for infrastructure and attachments will be paid to relevant entities or individuals. Fund use programs so determined will be submitted to the Laibin Municipal Water Resources Bureau for approval and to LPMO for reference. The fund flow of the Hongshui River Project is shown in Figure 8-7.

Local counterpart fu Domestic special fu nds nds

LLRB Xingbin District House Demolition Management Office Bank or credit cooperati ve A A A H t f t f e a s c c t r h e i m e d t e o e n r n s t

t p i t i r e o s p

Figure 8-8 Disbursement Process of Resettlement Funds

8.4.2 Management and Disbursement

In order that resettlement funds are available timely and fully to ensure the restoration of the production level and living standard of the AHs, the following measures will be taken in the WE Project and the Hongshui River Project:  All costs related to LA, HD and resettlement will be included in the general budget of the project.  Land compensation fees and resettlement subsidies will be fully paid before LA to ensure that all APs are resettled properly.  Financial and supervisory agencies will be established at different levels to ensure that all funds are fully and timely available.  The budget is an estimate of the resettlement costs. Due to practical variations in the project area, practical impacts of DMS (Detailed Measurement Survey), modifications to compensation, inflation and other factors, the actual costs may be increased, but LGWTDI and FPDO will ensure the disbursement of compensation fees. The budget has taken contingencies into account, and will be used and modified as necessary.

62 9 Public Participation and Consultation, and Grievance Redress Information disclosure, public participation and grievance redress at all stages of the project are a prerequisite to the fulfillment of the project objectives and benefits. Based on the field survey, diversified public participation activities with agencies and APs concerned were organized by LPMO, LGWTDI and FPDO at the preparation stage.

9.1 Public Participation Strategy and Methods According to the policies and regulations of the state, Guangxi and Laibin City on resettlement, it is very necessary to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives properly by developing sound policies and implementation rules on displacement and resettlement, preparing an effective RAP, and organizing implementation properly. 1. Direct methods  FGd FGDs were held with representatives of the APs or village officials to discuss their concerns, collect their feedback, and solicit suggestions from the local governments accordingly.  Consultative meeting on resettlement Consultative meetings on resettlement were organized by resettlement offices to discuss resettlement modes with the APs and improve the RAP based on their feedback. 2. Indirect method The APs may reflect grievances, opinions and suggestions through village committees and resettlement agencies.

9.2 Completed Public Participation and Consultation Activities

In September 2011 and July 2012, the Bank Mission identified the WE Project and the Hongshui River Project, and gave operational guidance and raised requirements on resettlement and project construction. Afterwards, LPMO also conducted preparatory work for resettlement, as well as mobilization and consultation according to the scope of construction identified in the project proposal. In July 2012, the eligible displaced households in Gusan Village were resettled in high-rise residential buildings in Yuda Central City in order to agreement execution. The procedure for resettlement house selection by the displaced households is as follows: (1) The displaced households file an application with the township government (sub-district office), and submit household registers, ID cards, birth certificates, marriage certificates and other valid certificates. (2) The township government (sub-district office) submits application materials to the resettlement task force of Xingbin District, which will review the materials and prepare a preliminary list of eligible households. (3) The local public security department shall verify the authenticity of the eligible households. The Xingbin District Land Acquisition Office shall organize a joint review together with the township government (sub-district office) and the task force, and disclose the list for 5 days. If there is any objection, the list will be revised and disclosed again. (4) If there is no objection after the disclosure period, the eligible households will report house numbers and sizes chosen by them to the task force within 3 days based on 40 m2 of housing size per capita. The task force will prepare statistics for submission to the municipal government for approval. (5) After an eligible household enters into an agreement for permanent

63 resettlement, it will settle the price difference within 30 days and then receive the key to the resettlement house, otherwise it shall be deemed to waive the resettlement opportunity. (6) Each eligible household will go through the ownership transfer formalities. The resettled households are satisfied with resettlement. See Table 9-43. Table 9-43 Public Participation Process of Aps Project Time Location Organizer Participants Topics Results LPMO, LGWTDI, Announcement of sub-district project impacts, Sub-district LPMO, offices, identification of Conducting 2011.8 offices LGWTDI village project area, preparatory work committees, policy reps. of communication APs LPMO, LGWTDI, Learning the officials of socioeconomic Affected LPMO, affected Socioeconomic profile of the 2011.9 village LGWTDI villages, survey and DMS project area and committees villager impacts of the reps., the project task force LPMO, LGWTDI, officials of Compensation LPMO, sub- Determining the affected and resettlement district resettlement and LPMO, villages, policies, and 2011.9 offices, compensation LGWTDI Hohai preliminary village policies University, resettlement committees preliminarily the task programs WE force (many Project times) LPMO, sub- Consultation on district details of Supplementary offices, 2011.11 LPMO LPMO resettlement consultation upon village policies and RAP finalization committees, programs AHs Sub-district Learning offices, LPMO, Task force, Survey on LA and experience and 2011.11 village LGWTDI AHs HD cases lessons in past committees projects Supplementary DMS, Sub-district socioeconomic Determining offices, LPMO, Task force, survey, resettlement 2012.4-5 village LGWTDI AHs consultation on policies and committees resettlement programs policies and programs Sub-district offices, Resettlement in LPMO, Task force, 2012.6-7 village the resettlement / LGWTDI AHs committees, communities AHs Hongshui 2012.4-5 Sub-district LPMO, LPMO, Announcement of Conducting River offices FPDO FPDO, sub- project impacts, preparatory work

64 Project Time Location Organizer Participants Topics Results district offices, identification of village project area, committees, policy reps. of communication APs Learning the LPMO, socioeconomic FPDO, key Sub-district LPMO, Socioeconomic profile of the 2012.6 informants, offices FPDO survey and DMS project area and the task impacts of the force project LPMO, Compensation Project FPDO, key and resettlement Determining the informants, policies, and LPMO, resettlement and LPMO, Hohai preliminary 2012.7 affected compensation FPDO University, resettlement communities policies the task programs preliminarily force (many times) LPMO, sub- Supplementary district Individual issues consultation on offices, 2012.7-8 LPMO LPMO of resettlement individual issues AHs, reps. policies and plan upon finalization of affected of the RAP entities

9.3 Information Disclosure During the preparation of this RAP, LPMO, LGWTDI, FPDO, the agencies for LA and HD, and the design agency disclosed project information and resettlement policies to the APs through different channels. See Table 9-44. Table 9-44 Information Disclosure Schedule Date of Place of Document Mode of disclosure Language disclosure disclosure Radio and TV stations, Introduction to the WE Project Jun. 2011 / Chinese newspaper Resettlement policies of the WE Radio and TV stations, Aug. 2011 / Chinese Project government website Introduction to the Hongshui River Radio and TV stations, Mar. 2012 / Chinese Project newspaper Resettlement policies of the Radio and TV stations, Apr. 2011 / Chinese Hongshui River Project government website Notice to disclose the RAP of the Local newspaper Aug. 2012 / WE Project After Bank RIB Handled to APs / Chinese review After Bank Chinese, RAP Government website Library review English

65 9.4 Public Participation Plan for the Next Stage At the project implementation and resettlement stages, LPMO should also pay attention to information disclosure and public participation, and communicate with the AHs adequately to ensure successful project implementation. With the progress of project implementation, the APs should be further consulted in order to handle their concerns and requirements related to resettlement properly and timely, so that all issues can be solved before the RAP is put into practice. The resettlement implementing agencies will arrange public participation activities rationally so that all AHs can be consulted on compensation and resettlement before signing compensation agreements. Public participation and consultation activities at the next stage include: 1) Compensation and disbursement schedule; 2) Detailed restoration measures; 3) Issues arising from resettlement implementation; 4) Project design optimization; 5) Resettlement housing construction, including requirements for construction progress, location, structure and size; 6) Other concerns of the APs. According to the plan, the township governments, and community and village committees concerned may hold consultation meetings irregularly, and report to the project management agencies. In addition to the consultation activities organized by LPMO, the external M&E agency will also consult with the APs about other aspects of monitoring, and collect their comments and suggestions independently.

9.5 Appeal Handling Procedure

During the preparation and implementation of this RAP, attention will be always paid to public participation and an appeal mechanism established as follows:  Stage 1: If any AP is dissatisfied with the RAP, he/she can file an oral or written appeal with the village committee or demolition implementing agency orally or in writing. In case of an oral appeal, the village committee or demolition implementing agency shall handle such appeal and keep written records. Such appeal should be solved within 2 weeks.  Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with LPMO/management agency after receiving such disposition, which shall make a disposition within 2 weeks.  Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may escalate the appeal to the competent administrative authorities in accordance with Administrative Procedure Law of the PRC after receiving such disposition for arbitration.  Stage 4: If the AP is still dissatisfied with the arbitration award, he/she may file a suit in a civil court in accordance with the Civil Procedure Law of the PRC after receiving such award. The APs may file an appeal about any aspect of resettlement, including compensation rates, etc. The above appeal channel will be notified to the APs at a meeting or otherwise, so that the APs are fully aware of their right of appeal. Mass media will be utilized for publicity, and opinions and advice about resettlement will be compiled into messages for study and disposition by the resettlement agencies. During the implementation of the RAP, the resettlement agencies should register and manage appeal and handling information, and submit such information to LPMO in writing on a monthly basis. LPMO will inspect the registration of appeal and handling information regularly, and will prepare a registration form for this purpose, the format of which is shown in Table 9-45.

Table 9-45 Registration Form of Grievances and Appeals Appellant Time

66 Accepting agency Location Appeal Expected solution Proposed solution Actual handling Appellant (signatu Recorder (sig re) nature) Notes: 1. The recorder should record the appeal and request of the appellant factually. 2. The appeal process should not be interfered with or hindered whatsoever. 3. The proposed solution should be notified to the appellant within the specified time.

67 10 Implementation Schedule

10.1 Principles for Resettlement Implementation

According to the project implementation schedule, the project will be constructed from early November 2012 to October 2014. In order that the resettlement schedule links up the construction schedule of the project, LA, HD and resettlement will begin in December 2011 and end in October 2013. The basic principles for resettlement im plementation are as follows:  LA and HD should be completed at least one month prior to the commencement of construction, and the starting time will be determined as necessary.  Before the commencement of construction, sufficient time should be allowed for LA, HD and resettlement.

10.2 Schedule for Key Implementation Tasks

10.2.1 Principles for Schedule Development

 The range of LA and HD shall be determined based on the design drawings of the individual works, which shall be completed before the DMS.  The DMS shall be conducted by LPMO, LGWTDI, FPDO, LLRB, Xingbin District House Demolition Management Office, and proprietors according to the boundary map of LA and HD before the execution of the compensation and resettlement agreement.  LGWTDI, FPDO, LLRB and the Xingbin District House Demolition Management Office shall hold a mobilization meeting with the displaced households and entities to disclose policies and resettlement measures on LA, HD, compensation and resettlement before the execution of the compensation and resettlement agreement. The LA and HD announcement will be published formally after the mobilization meeting.  The displacer and the APs shall enter into the compensation and resettlement agreement after the DMS and the publication of the LA and HD announcement.  Infrastructure will be constructed in advance and then demolished.  Resettlement fees shall be settled after the execution of the agreement and before relocation.  The resettlement work shall be inspected so that it is satisfactory to the displaced households and entities.

10.2.2 Master Implementation Schedule

The general resettlement schedules of the WE Project and the Hongshui River Project have been drafted according to the progress of preparation and implementation activities of LA, HD and resettlement. The specific period of implementation may be adjusted due to any deviation from the general schedule. See Table 10-46.

Table 10-46 Resettlement Schedule

Project StageP Task Time r WE e Determination of range of LA and HD 2011.5 p

Project a r DMS 2011.8 a t

i Preliminary socioeconomic survey 2011.9 o n Consultation of resettlement programs 2011.9

68 Project Stage Task Time Preparation of the RAP 2011.10-2012.7 Disclosure of the RAP 2012.7

I Approval of the RAP 2012.7 m

p Approval of acquisition of rural collective land 2010.1 l e

m Holding an LA and HD mobilization meeting to disclose

e 2012.7

n policies t a

t Issuing the LA and HD announcement 2012.7 i o

n Negotiating and signing compensation and resettlement 2012.8 agreement Demolition of houses and facilities 2012.9 Handover of land for construction 2012.1 Construction of resettlement houses 2011.12-2013.12 Moving into new houses 2012.12 Income restoration of APs 2013.1

M&EP Commencement of M&E 2013.3 r e Determination of range of LA and HD 2012.4 p a

r DMS 2012.5-6 a t

i Preliminary socioeconomic survey 2012.5-6 o n Consultation of resettlement programs 2012.6-7 Preparation of the RAP 2012.7-2012.8 Disclosure of the RAP 2012.8

I Approval of the RAP 2012.8 m

Hongshu p Approval of acquisition of rural collective land 2012.4 l e i River m Issuing the LA and HD announcement 2012.5 e

Project n Negotiating and signing compensation and resettlement

t 2012.6 a

t agreement i o

n Demolition of houses and facilities 2012.7 Handover of land for construction 2012.11 Construction of resettlement houses 2012.4-2013.6 Moving into new houses 2013.6 Income restoration of APs 2013.7 Commencement of M&E 2013.9

69 11 M&E Arrangements To ensure the successful implementation of the RAP and resettle the APs properly, periodic M&E on LA, HD and resettlement activities will be conducted in accordance with the Bank’s policy on involuntary resettlement (OP4.12), and the Operational Guide to the Monitoring and Evaluation of Resettlement of World Bank Financed Projects in China. Monitoring is divided into internal monitoring of resettlement agencies and external independent monitoring.

11.1 Internal Monitoring

Internal monitoring will be performed by the project owner with the assistance of the governments and HD offices of the project city/district/townships, and the affected village committees. The resettlement implementing agencies will establish a database of LA, HD and resettlement, and use it to prepare the RAP, monitor all displaced households and entities, and conduct internal supervision and inspection of the whole process of resettlement.

11.1.1 Implementation Procedure

During implementation, LGWTDI and FPDO will collect and record information on resettlement implementation from the monitoring samples, and report real-time activity records to maintain continuous monitoring.

11.1.2 Scope of Monitoring

1. Land approval 2. Compensation fees and disbursement 3. House reconstruction 4. Construction and allocation of resettlement housing for property swap 5. Production and livelihood restoration measures 6. Restoration of special facilities 7. Schedule for the above activities 8. Staffing, training, working schedule and efficiency of the resettlement agencies 9. Registration and handling of grievances and appeals of the APs

11.1.3 Internal Monitoring Reporting

LGWTDI and FPDO will prepare an internal monitoring report semiannually, and submit it to LPMO, which will in turn submit it to the Bank.

11.2 Independent External Monitoring

11.2.1 Independent Monitoring Agency

LPMO, LGWTDI or FPDO will appoint an independent third party agency with at least 5 years of experience in the M&E of Bank-financed projects to monitor and evaluate LA, HD and resettlement activities.

11.2.2 Monitoring Procedure and Scope

1. Preparing the Terms of Reference of M&E

70 2. Developing software for the resettlement M&E information system 3. Preparing a survey outline, survey form and record card of affected residents and typical affected entities 4. Design of sampling survey plan and sample size 5. Baseline survey A baseline survey required for the independent M&E of the households affected by LA in the WE Project, and the entities and households affected by the Hongshui River Project will be conducted to acquire baseline data on the standard of living (livelihood, production and income levels) of the monitored AHs. 6. Establishing an M&E information system An M&E information system will be established, where a database will be established for different types of M&E data, in order to provide computer aid for analysis and follow-up monitoring. 7. M&E survey (1) Capacity evaluation of resettlement implementing agencies: to investigate the working capacity and efficiency of the resettlement implementing agencies (2) Monitoring of resettlement progress, compensation rates and payment to typical displaced households: to monitor the disbursement of compensation fees, income restoration and resettlement quality of residents; restoration measures for vulnerable groups; compensation for and restoration of temporarily occupied land (3) Public participation and consultation: to monitor public participation activities during the preparation and implementation of the RAP, and the effectiveness of participation (4) Appeals: to monitor the registration and disposition of appeals of the APs (5) Compiling monitoring data, and establishing a database (6) Comparative analysis (7) Preparing M&E reports according to the monitoring plan The external M&E agency should prepare terms of references, a survey outline and a questionnaire, establish a monitoring system and select monitoring sites before the beginning of resettlement, and submit an external M&E report to the Bank semiannually.

11.2.3 Monitoring Indicators

 Socioeconomic indicators: per capita income, GDP, employment rate;  Institutional indicators: staffing, staff quality, rules and regulations, equipment, closing rate;  APs: availability of compensation fees, mode of production resettlement, rate of change of income, employment rate, satisfaction with resettlement;  Residential houses: availability of compensation fees, location of new site, land acquisition progress of new site, satisfaction with resettlement;  Infrastructure: availability of compensation fees, functional restoration rate  Temporary land occupation: availability of restoration fees, progress of land restoration

11.2.4 Post-evaluation

After project implementation, the resettlement activities will be subject to post- evaluation using the theory and methodology for post-evaluation on the basis of M&E. Successful experience and lessons of LA and resettlement will be evaluated to provide experience that can be drawn on for future resettlement. Post-evaluation will be conducted by the external independent M&E agency as appointed by LGWTDI. The post-evaluation agency will prepare terms of reference for post-evaluation to establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the Resettlement Post-evaluation Report for submission to LPMO and the Bank.

71 12 Entitlement Matrix

Project Type Degree APs Compensation and resettlement policy Compensation rate WE Permane 264.53 206 1) In acquiring land, compensation should be made according to the original purposes of the Collective Project nt mu of househ land acquired; acquired land is divided into collective farmland, collective construction land and farmland: 30172 acquisitio collective olds collective unused land. yuan/mu, n of land in 5 with 2) Compensation fees for LA will be paid directly by LLRB to the AHs. The AHs may attend local Collective collective villages 746 labor employment training voluntarily and freely after receiving compensation. Eligible persons construction land persons may also participate in the endowment insurance for LEFs voluntarily. land27155 3) The compensation rates for LA will be based on the Notice of the General Office of the Laibin yuan/mu, Municipal Government on Adjusting the Compensation Rates for Collective Land Acquisition and collective unused Ground Attachment Demolition in the Urban Area (LMGO [2010] No.160). land: 17000 yuan/mu. Permane 94.78 mu 20 In this Project, state-owned water surface, river flat and unused land occupied has been nt of state- househ acquired by allocation, and young crops thereon will be compensated on an as-is basis; houses occupatio owned olds on the affected state-owned industrial land and housing land will be compensated for in cash n of land with 80 through appraisal. state- persons owned land Temporar 192.07 37 Temporary occupation of rural collective land shall be compensated for based on the purpose Collective y land mu househ and loss of occupation. farmland: 1588 occupatio olds yuan/mu-year, n with sugarcane land 151 2,062 yuan/mu- persons year, fishpond: 4,481 yuan/mu-

72 Project Type Degree APs Compensation and resettlement policy Compensation rate year, land reclamation costs 6 yuan/m2 Demolitio 39,273.3 93 Residential houses (including those on collective land and state-owned land) affected by the WE Masonry n of rural m2 househ Project and the Hongshui River Project will be subject to compensation and resettlement in concrete: 720 residentia olds accordance with Document LMGO [2009] No.196, namely: yuan/m2; masonry l houses with 1) If any AH’s land is fully acquired, it will be granted business premises at a building area of 40 timber: 550 339 m2 per capita (including shared area), including 20 m2 on the first floor for commercial use and yuan/m2; brick- persons 20 m2 on the second floor in a mixed commercial and residential building. tile: 460 yuan/m2; Demolitio 6,000 m2 20 2) If any AH’s lawful house is demolished, it will be granted with housing at a building area of 40 simple: 200 n of rural househ m2 per capita (including shared area). yuan/m2 urban olds Moving subsidy: houses with 80 800 persons yuan/household; transition subsidy: 6 yuan/m2·month Entities 1,130 m2 No AP To be compensated for in cash based on market appraisal Masonry concrete: 720 yuan/m2; masonry timber: 550 yuan/m2; brick- tile: 460 yuan/m2; simple: 200 yuan/m2 Moving subsidy: 800 yuan/household;

73 Project Type Degree APs Compensation and resettlement policy Compensation rate compensation for losses from production or business suspension: 5% of compensation fees for buildings or structures The final compensation rate is based on market appraisal. Ground / Propriet To be compensated for by the project owner to proprietors attachme ors nts Hongshui Permane 143.91 60 Houses on the state-owned industrial land and housing land affected by this project will be River nt mu of househ compensated for in cash through appraisal. Project occupatio state- olds n of owned with state- land 354 owned persons land ; 670 employ ees Demolitio 16,574.0 60 To be compensated for in cash through appraisal Masonry n of rural 4 m2 househ concrete: 720 urban olds yuan/m2; masonry

74 Project Type Degree APs Compensation and resettlement policy Compensation rate houses with timber: 550 354 yuan/m2; brick- persons tile: 460 yuan/m2; simple: 200 yuan/m2 Moving subsidy: 800 yuan/household; transition subsidy: 6 yuan/m2·month Entities 65,326.0 3 To be compensated for in cash through appraisal Masonry 9 m2 enterpri concrete: 720 ses and yuan/m2; masonry 4 public timber: 550 institutio yuan/m2; brick- ns670 tile: 460 yuan/m2; employ simple: 200 ees yuan/m2 Moving subsidy: 800 yuan/household; compensation for losses from production or business suspension: 5% of compensation

75 Project Type Degree APs Compensation and resettlement policy Compensation rate fees for buildings or structures The final compensation rate is based on market appraisal. Appeals Compensation rates, Affected All costs and management fees involved in such appeal should be exempted. payment of persons compensation fees, dissatisf and LA and ied with resettlement LA, HD measures or resettle ment and filing an appeal

76 Appendixes

Appendix 1 Schematic Map of the WE Project

77 Appendix 2 Detailed Resettlement Budget

Project Rate Qty. Amount (0,000 No. Item Unit Percent (%) Remarks yuan/unit Unit yuan)

1 Acquisition of rural collective land 264.53 783.05 18.39%

1.1 Collective farmland 627.04 14.72% Compensation fees for LA mu 30172 197.43 595.69 13.99%

Compensation fees for young crops mu 1588 197.43 31.35 0.74%

1.2 Collective construction land mu 27155 41.3 112.15 2.63% 1.3 Unused land mu 17000 25.8 43.86 1.03% Withdrawal of the right to use state- 2 mu 30172 94.78 285.97 6.72% owned land 3 Temporary land occupation mu 2062 192.07 39.60 0.93% W

E 4 Demolition of rural residential houses 39273.3 1563.71 36.72%

r 2 o Masonry concrete m 460 23219.3 1068.09 25.08% j e

t Masonry timber m 310 3308.1 102.55 2.41% Brick-tile m2 320 9379 300.13 7.05% Earth timber m2 200 190.9 4.77 0.11% Simple structure m2 180 3176 57.17 1.34% Transition subsidy month/m2 6 39273.3 23.56 0.55% Moving subsidy Household 800 93 7.44 0.17%

5 Demolition of urban residential houses 299.20 7.03%

Masonry concrete m2 460 6000 276.00 6.48% Based on 6 Transition subsidy month/m2 6 6000 21.60 0.51% months Moving subsidy Household 800 20 1.60 0.04%

78 6 Demolition of properties of entities 20.34 0.48%

Simple structure m2 180 1130 20.34 0.48% 7 Ground attachments 41.13 0.97% Fruit trees / 75 4018 30.14 0.71% Timber trees / 20 4415 8.83 0.21% Telegraph poles / 800 27 2.16 0.05% Subtotal of Items 1-7 3033.00 71.22% 8 Survey and design costs \ 3.00% 3045.68 91.37 2.15% 9 External M&E costs \ 0.50% 3045.68 15.23 0.36% 10 Administrative costs \ 5% 3045.68 152.28 3.58% 11 Training costs \ 1% 3045.68 30.46 0.72% 12 Farmland reclamation costs mu 5002.5 197.43 98.76 2.32% 13 Farmland occupation tax mu 20010 197.43 395.06 9.28% 14 LA management costs \ 2.10% 783.05 16.44 0.39% Subtotal of Items 8-14 799.60 18.78% 15 Contingencies 425.84 10.00% Total 4258.44 100.00% Withdrawal of the right to use state- 1 mu 30172 143.91 434.21 8.55% owned land

2 Demolition of urban residential houses 744.37 14.66%

H Masonry concrete m2 460 14388.7 661.88 13.04% o n g Masonry timber 310 2185.31 67.74 1.33% s h u 2 Based on 6 i Transition subsidy month/m 6 16574 9.94 0.20%

R months i v e Moving subsidy Household 800 60 4.8 0.09% r

o 3 Demolition of properties of entities 2994.08 58.98% j e c t Masonry concrete 460 64561.25 2969.82 58.50% Masonry timber 310 214.84 6.66 0.13% Brick-tile m2 320 550 17.6 0.35% Subtotal of Items 1-3 4172.65 82.19% 4 Survey and design costs \ 3.00% 6340.39 125.18 2.47%

79 5 External M&E costs \ 0.50% 6340.39 20.86 0.41% 6 Administrative costs \ 5% 6340.39 208.63 4.11% 7 Training costs \ 1% 6340.39 41.73 0.82% Subtotal of Items 4-7 396.4 7.81% 8 Contingencies 507.67 10.00% Total 5076.73 100.00%

80 Appendix 3 Survey on Resettlement Cases of Similar Projects

1. Resettlement case In order to lay a good industrial base for the city, an array of construction projects have been implemented since November 2004, in which the construction of Guangxi Huiyuan Manganese Industry Co., Ltd. (“Huiyuan Manganese” for short) and the expansion of the Laibin Power Plant were quite influential at that time. The Laibin Power Plant was expanded to install two 300,000 kW coal-fired generating units, with a dynamic investment of 2.66215 billion yuan. This project broke ground in November 2004, and the two units were put into operation in October 2006 and April 2007. Over 200 mu of land was acquired and rural residential houses of 2,000 m2 demolished for this project. Huiyuan Manganese was funded by Guangxi Investment (Group) Co., Ltd., Guangxi Bayi Ferroalloy (Group) Co., Ltd. and Guangxi Dameng Manganese Industry Co., Ltd. at a ratio of 50%, 35% and 15%, specializing in the manufacture of high-purity electrolytic metallic manganese and mercury-free manganese dioxide, with a first-phase investment of 470 million yuan. This project broke ground in November 2004 and was completed in June 2007. 320 mu of land was acquired and rural residential houses of 5,250 m2 demolished for this project. The “residential housing plus commercial property” resettlement mode was applied both projects. All displaced persons in Modong Village were relocated to Modong Community, and those in Zhongxing No.3 Community and the Overseas Chinese Agricultural Science Station to Huaqiao Resettlement Community. 2. Sample households and resettlement communities In November 2011, the task force investigated the two resettlement communities (Modong Community and Huaqiao Resettlement Community) for the two projects, and conducted a questionnaire survey on and in-depth interviews with the heads of 18 households. (1) Basic information of APs The 18 sample APs have an average age of 42.5 years, and include 13 males and 5 females. (2) Resettlement of sample households 7 households were relocated from Modong Village to Modong Community, 5 from the Overseas Chinese Agricultural Science Station to Huaqiao Resettlement Community, and 6 from Zhongxing No.3 Community to Huaqiao Resettlement Community. The 18 households were relocated from their former residence sites by not more than 2km, and resettlement did not affect their daily activities greatly. Both communities are close to highways, and the APs’ traffic convenience is improved greatly; and there are primary school, high schools and hospitals near both communities.

81 Figure 1 Modong Community (L), Huaqiao Resettlement Community (R)

3. Compensation and resettlement effects (1) Production and livelihood restoration The task force surveyed the annual income and expenditure of the 18 sample households before and after resettlement to learn their income restoration. Income structure changed significantly. Before resettlement, their main income sources were outside employment and agriculture, in which agricultural income accounted for 37.66% of gross income. After resettlement, the proportion of agricultural income reduced significantly to 0.77%, and employment and business income became dominant. This is mainly because the APs have almost no land after resettlement, and the resettlement mode applied has led their income structure to tertiary industries. Both before and after resettlement, productive expenses were dominant, but productive expenses rose greatly as compared to before, mainly because of price rise and income structure change, where tertiary industry operations would consume more productive materials. In general, the per capita net income of the APs was much higher after resettlement, rising from 3,897.92 yuan to 6,755.89 yuan. The resettlement work of the two projects was successful in terms of income restoration, though the income structure and main means of living of the APs changed.

Table 1 Income and expenditure before and after relocation Item Before relocation (2004) After relocation (2010) Average per Per Percen Average Per Percent household capita t (%) per capita (%) (yuan) (yuan) househol (yuan) d (yuan) Agriculture 7440 1718.2 37.66 300 69.28 0.77 I n c

o 4 m e Employment 9817 2267.2 49.69 19878 4590.76 50.89 1 Business 960 221.71 4.86 16800 3879.91 43.01 Wage 1152 266.05 5.83 1317 304.16 3.37 Other 387 89.38 1.96 768 177.37 1.97 Gross income 19756 4562.5 100.00 39063 9021.48 100.00 9

E Productive expenses 2878 664.67 43.52 9810 2265.59 64.92

82 22.58 12.51 \ 100.00 have These are highly 787.99 436.49 3490.07 6755.89 meeting held are satisfied and living conditions 15112 29253 support the project and 3412 1890 mobilization : Another main way is the , accounting for 33.33%. satisfaction questionnaire survey 31.38 25.10 \ 100.00 : 44.44% of the respondents are of unaware policies. these 83 4 2 479.26 383.42 1527.3 3897.9 resettlement : 94.44% of the respondents The main way is the policies 5.56% : he are he as results follows : 86.67% of the respondents T . . , accounting for 66.67%. Some APs think that though their 16878 2075.2 1660.2 6613.4 . resettlement also conducted a households gross = ( productive are dissatisfied. are

sample – Satisfaction with present life Attitude to the project Awareness of Ways of knowing policies Satisfaction resettlementSatisfaction with Comparison of expenditure before and after relocation before and expenditure of Comparison Comparison of income before and after relocation before incomeof Comparison 18 give no comment he task force 5.56% (2) ④ ② ③ T ① Nonproductive expenses Gross expenditure Other Other expenses et income expenses) income Figure 2Figure Figure 1 Figure sense sense right ofonlywhile protection, by the village announcement published committee by the village committee only 7.78% they slightly uncomfortableimproved, are the with lifestyle. new aware of these policies, because they live near the urban area and have a strong on on the N enditure are the only two ways of policy communication, and more ways of information disclosure should be developed. ⑤ Attitude to resettlement policies: 88.88% of the respondents are satisfied with these policies, and only two households think the compensation rate for LA is relatively low. ⑥ Attitude to resettlement implementation: 85.55% of the respondents think the resettlement work is worthy of recognition, 14.45% are dissatisfied with resettlement implementation, mainly because the transition period was long, during which no extra subsidy was received from the government.

Table 2 Resettlement satisfaction survey No. Question Answer Percent (%) 1 2 3 4 5 Total 1 Satisfaction with 1) Very satisfied; 2) 11.11 27.78 55.56 5.56 0.00 100.0 present life somewhat satisfied; 3) % % % % 0% satisfied; 4) dissatisfied; 5) very dissatisfied 2 Attitude to the 1) Support; 2) Oppose; 3) No 86.67 5.56% 7.78% / / / project comment % 3 Awareness of 1) Highly aware; 2) 44.44 22.22 27.78 5.56 0.00 100.0 resettlement Somewhat aware; 3) % % % % 0% policies Basically aware; 4) Unaware 4 Ways of 1) Newspaper, TV, radio; 2) 0.00 33.33 0.00% 66.6 0.00 100.0 knowing announcement; 3) brochure; % % 7% % 0% policies 4) village meeting 5 Attitude to 1) Very satisfied; 2) 0.00 44.44 44.44 5.56 5.56 100.0 resettlement somewhat satisfied; 3) % % % % 0% policies satisfied; 4) dissatisfied; 5) very dissatisfied 6 Attitude to 1) Very satisfied; 2) 21.11 21.11 43.33 14.4 0.00 100.0 resettlement somewhat satisfied; 3) % % % 5% % 0% implementation satisfied; 4) dissatisfied; 5) very dissatisfied

4. Conclusion and suggestions (1) Conclusion Based on the survey results, the APs’ production and livelihoods have been restored after resettlement, and the income of many APs has improved greatly. However, income structure has changed significantly and agriculture is no longer their main income source. The resettlement policies of the project have been recognized by most APs and are deemed to be suitable for local conditions. However, the following issues during resettlement should draw further attention: ① Production and living adaptation: Due to the resettlement policies, the income structure and means of living of the APs were changed, and some APs had to spend some time to adapt to the new lifestyle. ② Resettlement progress: The progress of resettlement will affect the quality of life of the APs during the transition period, and their attitude to and confidence in the project. The slow progress of resettlement of the project affected their living arrangements. (2) Suggestions

84 Based on the above issues, the task force has proposed the following suggestions for the WE Project: ① Pay attention to information disclosure and public participation, so that the APs fully understand the resettlement policies and give advice on the project, so that the project is more suited to their practical needs, and grievances and disputes are reduced. ② The transition period should be minimized and a transitional living subsidy granted to help the APs solve productive and living difficulties, reduce losses, and restore production and livelihoods as soon as possible.