Social Monitoring Report

Annual Report March 2012

PRC: -Zhongwei Railway Project

Prepared by Research Institute of Foreign Capital Introduction and Utilization, Southwest Jiaotong University for the Ministry of Railways and the Asian Development Bank.

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Asian Development Bank (ADB) Loan Taiyuan-Zhongwei-Yinchuan Railway Construction Project

External Monitoring Report on Resettlement

(Phase V)

Research Institute of Foreign Capital Introduction and Utilization, Southwest Jiaotong University (RIFCIU-SWJTU)

March, 2012 Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

CONTENTS

1 OVERVIEW...... 5

1.1 BASIC INFORMATION OF THE PROJECT...... 5 1.2 CONSTRUCTION PROGRESS OF THE PROJECT...... 6 1.3 PROGRESS OF RESETTLEMENT...... 6 1.4 MONITORING & ASSESSMENT WORK...... 7

2 MONITORING ON PROJECT IMPACT...... 8

2.1 MONITORING ON MATERIAL INDEXES OF PERMANENT LAND ACQUISITION...... 8 2.2 MONITORING ON MATERIAL INDEXES OF HOUSE DEMOLITION...... 8 2.3 MONITORING ON TEMPORARY LAND OCCUPATION...... 8 2.4 MONITORING ON SCATTERED TREES...... 8 2.5 MONITORING ON GROUND APPURTENANCES AND PRODUCTION FACILITIES...... 17 2.6 MONITORING ON INFRASTRUCTURE...... 22 2.7 MONITORING ON IMPACTS ON ENTERPRISES AND INSTITUTIONS...... 22

3 MONITORING ON COMPENSATION STANDARD AND COMPENSATION FEE...... 23

3.1 MONITORING ON COMPENSATION POLICY...... 23 3.1.1 Policy basis...... 23 3.2 MONITORING ON COMPENSATION STANDARD...... 24 3.2.1 Changes of land acquisition compensation standards...... 24 3.2.2 Changes of house demolition compensation standards...... 25 3.2.3 Conclusion of monitoring on compensation standard...... 27 3.3 FUND APPROPRIATION MONITORING...... 27

4 MONITORING ON RESETTLEMENT RESULTS...... 35

4.1 MONITORING ON PERMANENT LAND ACQUISITION AND RESETTLEMENT RESULTS...... 35 4.2 MONITORING ON HOUSE DEMOLITION AND RESETTLEMENT RESULTS...... 36 4.3 TYPICAL SURVEY AND INTERVIEW...... 39 4.3.1 The Ningxia Hui Autonomous Region...... 39 4.3.2 province...... 42 4.3.3 Province...... 49 4.4 MONITORING ON RESULTS OF RESETTLEMENT OF ENTERPRISES AND PUBLIC INSTITUTIONS...... 60 4.4.1 Assessment on general resettlement results of enterprises and public institutions...... 60 4.5 MONITORING OVER RESTORATION OF INFRASTRUCTURES...... 64 4.6 MONITORING OVER RECOVERY OF TEMPORARY LAND ACQUISITION...... 64

5 MONITORING ON RESETTLEMENT ORGANIZATIONS...... 66

5.1 OVERALL MONITORING ON RESETTLEMENT ORGANIZATIONS...... 66 5.2 SPECIFIC MONITORING ON RESETTLEMENT ORGANIZATIONS...... 66 5.2.1 Monitoring on resettlement organizations of Taizhongyin Railway Co., Ltd...... 66 5.2.2 Monitoring on resettlement organizations of local governments...... 66 5.3 MEASURES FOR STRENGTHENING CAPABILITIES OF ORGANIZATIONS...... 67

RIFCIU-SWJTU 2 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 6 PUBLIC PARTICIPATION & COMPLAINT CHANNEL...... 68

6.1 PUBLIC PARTICIPATION...... 68 6.2 COMPLIANT CHANNEL...... 69

7 CONCLUSIONS, PROBLEMS AND SUGGESTIONS...... 71

7.1 MONITORING AND EVALUATION CONCLUSIONS...... 71 7.2 PROBLEMS AND SUGGESTIONS...... 72 7.3 WORK ARRANGEMENTS OF EXTERNAL RESETTLEMENT MONITORING ORGANIZATION IN THE NEXT STEP..73

ATTACHMENTS...... 74

ATTACHMENT 1 LISTS OF ENTERPRISES, INSTITUTIONS AND SCHOOLS DEMOLISHED FOR TAIYUAN-ZHONGWEI-YINCHUAN RAILWAY...... 74 ATTACHMENT 2 COMPENSATION CRITERION FOR LAND ACQUISITION AND RELOCATION OF NINGXIA OF 201082

RIFCIU-SWJTU 3 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Preface According to the loan agreement between the Ministry of Railways and Asian Development Bank (ADB), the external monitoring organization for resettlement of Taiyuan-Zhongwei-Yinchuan Railway Construction Project shall submit the External Monitoring Report (Phase V) on Resettlement of Taiyuan-Zhongwei-Yinchuan Railway Construction Project to ADB in March, 2012. In March, 2012, the external monitoring organization for resettlement organized a monitoring, survey and evaluation group to monitor and survey along Taiyuan-Zhongwei-Yinchuan Railway in the territory of Shanxi Province, Shaanxi Province and Ningxia Hui Autonomous Region respectively based on the determined monitoring and survey outline and monitoring and evaluation indicators. This monitoring, survey and evaluation work belongs to Phase V of external monitoring, survey and evaluation. The cutoff date for information data of evaluation basis is December, 2011. Information about acceptance and valuation provided by local resettlement departments along Taiyuan-Zhongwei-Yinchuan Railway is the primary basis for relevant monitoring and evaluation data with respect to land requisition, house demolition and resettlement. Besides, macro data provided by Taizhongyin Railway Co., Ltd is used as a reference. Based on field survey along the whole line, full comprehension of construction, land acquisition, house demolition and resettlement progress, compensation standards and fund appropriations for land acquisition & house demolition as well as resettlement implementation plans, the monitoring group has objectively and fairly assessed the present resettlement effects of the Project up to now, by collecting a wide range of opinions and suggestions from dislocated persons about the resettlement results, carefully checking Resettlement Action Plan (RAP), comparing the production and living standard of the dislocated persons before and after resettlement. We hereby present our sincere thanks to the Ministry of Railways, the Employer Taizhongyin Railway Co., Ltd., some railway construction contractors, and Shanxi Province, Shaanxi Province, Ningxia Hui Autonomous Region, and local governments along the line for their cooperation and assistance in independent external monitoring and assessment work on resettlement carried out by RIFCIU-SWJTU.

Research Institute of Foreign Capital Introduction and Utilization, Southwest Jiaotong University March, 2012

RIFCIU-SWJTU 4 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 1 Overview 1.1 Basic information of the Project 1. The new Taiyuan-Zhongwei-Yinchuan Railway (hereinafter referred to as “Taiyuan-Zhongwei-Yinchuan Railway”) is 942km long in total with a planned overall investment of 32.1 billion yuan. The main line is from Taiyuan South Railway Station to Yingshuiqiao Marshalling Station of Baotou-Lanzhou Line. The origin of connecting line to Yinchuan is the center of Dingbian Station and the terminal is Yinchuan Station of Baotou-Lanzhou Line. The east section is from Yuci in Shanxi Province to in Shaanxi Province, which is designed as double-track electrified railway; the west section is from Dingbian County in Shaanxi Province to both Zhongwei and Yinchuan in Ningxia Hui Autonomous Region, which is designed as single-track electrified railway (to reserve conditions for double-track). 2. 359 villages of 88 townships in 22 counties (districts) in Shanxi Province, Shaanxi Province and Ningxia Hui Autonomous Region are involved in land acquisition and house demolition for the Project, which are: and in Taiyuan, Shanxi; and Development Zone in Jinzhong, Shanxi; Jiaocheng County, Wenshui County, City, Lishi District and in Lvliang City, Shanxi; Wubu County, Suide County, , Hengshan County, and Dingbian County in Yulin City, Shaanxi; Yanchi County and Hongsibao District in Wuzhong City, Ningxia Hui Autonomous Region; Zhongning County and the urban district of Zhongwei in Zhongwei City, Ningxia Hui Autonomous Region; Lingwu County, Yongning County and Jinfeng District in Yinchun, Ningxia Hui Autonomous Region. 3. Taiyuan-Zhongwei-Yinchuan Railway is invested and constructed jointly by ten shareholders such as Xi'an Railway Bureau, Shanxi Real Estate Company, Shaanxi Railway Investment Corporation, Ningxia Investment Company, Railway Group Limited, China Communications Construction Company Limited., China State Construction, etc. Taizhongyin Railway Co., Ltd., as the executor for construction management, bears main responsibilities of construction management. Taizhongyin Railway Co., Ltd. was officially registered with Xi'an Administration for Industry and Commerce on April 26, 2007. 4. The construction of Taiyuan-Zhongwei-Yinchuan Railway employs Corporate Responsible System, General Contract System, Design and Consultancy System, and Engineering Supervision System. Taizhongyin Railway Co., Ltd. has been arranged with General Affairs Dept., Planning & Finance Dept., Technical Equipment Dept., Security & Quality Dept., Engineering Management Dept., and Land Acquisition & House Demolition Office. Field administration organizations are Taiyuan Construction HQ, Suide Construction HQ, and Yinchuan Construction HQ, which are responsible for corresponding construction problems. These three HQs are managed and taken charge by one Deputy General Manager respectively. 5. The whole Taiyuan-Zhongwei-Yinchuan Railway is constructed and progressed simultaneously in 5 construction sections, i.e., from Taiyuan South Railway Station to Exit of Lvliang Mountain Tunnel, from Exit of Lvliang Mountain Tunnel to Suide Station, from Suide Station to Jingbian Station, from Jingbian Station to Yingshuiqiao, from Dingbian Station to Yinchuan Station. 5 laying and erecting bases are set along the whole line, which are: Yuci Laying and Erecting Base, in charge of laying and erecting task from Taiyuan South Railway Station to Exit of Lvliang Mountain Tunnel; Liulin Laying and Erecting Base, in charge of laying and erecting task from Exit of RIFCIU-SWJTU 5 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Lvliang Mountain Tunnel to Suide Station; Suide Laying and Erecting Base, in charge of laying and erecting task from Suide Station to Jingbian Station; Huangyangwan Laying and Erecting Base, in charge of laying and erecting task from Yingshuiqiao to Jingbian Station; Pingjibao Laying and Erecting Base, in charge of laying and erecting task from Pingjibao to Dingbian. 6. Through bidding selection, the construction organizations for Taiyuan-Zhongwei-Yinchuan Railway include 6 construction units for key control sections, 11 construction units for comprehensive sections, 4 units for beam fabrication sections, 5 units for removal & reconstruction of electricity, telecommunication and broadcasting facilities, 2 power units for temporary and permanent power works, consortium of 4 construction units for after station works, and 10 supervision sections. 1.2 Construction progress of the Project 7. According to the information provided by the Employer, the Taiyuan-Zhongwei-Yinchuan Railway has been officially put into service on January 11, 2011. Meanwhile, according to latest progress brief provided by Engineering Dept. of Taizhongyin Railway Co., Ltd., completed quantities of material project for railway construction are progressing smoothly. By Dec. 2011, works along the whole line had been completed on the whole, with only a few auxiliary works under construction. 1.3 Progress of resettlement 8. Local governments are responsible for land requisition and house demolition for Taiyuan-Zhongwei-Yinchuan Railway and the expenses, which will be used as local government’s equity fund for Taizhongyin Railway Co., Ltd. Shanxi Real Estate Company, Shaanxi Railway Investment Corporation and Ningxia Investment Company are responsible for financing, usage, appropriation, and compensation of funds for land requisition and house demolition, while Taizhongyin Railway Co., Ltd coordinates local governments in the development of land requisition and house demolition. 9. According to the data about land acquisition and house demolition by the end of December in 2011 provided by Taizhongyin Railway Co., Ltd, the land acquisition and house demolition for the Project have completed basically. Except a small number of houses in a very few locations are being demolished, the land acquisition and house demolition at other areas have almost finished. Land occupation in Ningxia Hui Autonomous Region was reported to the Ministry of Land and Resources for examination and approval in December, 2007, while Shanxi and Shaanxi are now organizing the documents to be reported for examination and approval. By Dec.12, within the two provinces and Ningxia Hui Autonomous Region affected, 63260.022 mu of land in total has been permanently acquired for this Project, including 34092.28 mu of cultivated land, accounting for 53.89% of the total acquired land, which affects 35786 people; in which 12971.654 mu of land in Shanxi Province has been acquired (excluding resettlement land), including 8285.52 mu of cultivated land, accounting for 63.87% of the acquired land, which affects 10356 people; 25431.458 mu of land in Shaanxi Province has been acquired, including 16930.4 mu of cultivated land, accounting for 66.57% of the acquired land, which affects 15482 people; 24856.91 mu of land in Ningxia Hui Autonomous Region has been acquired,, including 8876.36 mu of cultivated land, accounting for 53.89% of the acquired land, which affects 9948 people. By Dec. 2011, 929197.3675m2 of civilian house has been demolished, involving 26052 people from 6315 households, where 311943.93 m2 houses were RIFCIU-SWJTU 6 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank demolished in Shanxi, involving 12241 people from 2936 households, 480727.9075 m2 houses were demolished in Shaanxi, involving 12032 people from 2936 households, and 136525.53 m2 houses were demolished in Ningxia Hui Autonomous Region, involving 1779 people from 399 households. Altogether, 281 large buildings of enterprises, institutions and schools etc. along the line were demolished – 170 in Shanxi Province, 55 in Shaanxi Province and 56 in Ningxia Hui Autonomous Region. 1.4 Monitoring & assessment work 10. After accepting the entrustment of Taizhongyin Railway Co., Ltd. on carrying out independent external monitoring and evaluation over the resettlement for Taiyuan-Zhongwei-Yinchuan Railway Project, RIFCIU-SWJTU prepared Outline for the Independent Monitoring and Evaluation (Phase V) regarding monitoring on resettlement arising from Taiyuan-Zhongwei-Yinchuan Railway in February, 2012 determining the range, contents, monitoring index, method and progress of independent monitoring and evaluation for this Project. 11. Later, the monitoring groups have collected background data along the whole line. In combination with the long line and great impacts, the monitoring groups have monitored the overall process of resettlement progress purposefully. Apart from informal discussion with leaders of affected townships & towns, villages and groups, the groups also increased the proportion of door-to-door interview, carried out focus investigation on the areas with large quantities of land acquisition and house demolition and sample investigation on various affected persons. The purpose of investigation is to comprehend changes of their production and living before and after land acquisition and house demolition, various compensation standards and availability of funds, so as to determine whether affected persons have met the requirements of supporting objects specified in Resettlement Action Plan (RAP), to timely find out problems in the implementation of resettlement, to feed back information to relevant resettlement organizations timely and to propose proper suggestions for improvement.

RIFCIU-SWJTU 7 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 2 Monitoring on Project Impact 2.1 Monitoring on material indexes of permanent land acquisition 12. By Dec. 2011, 63260.022 mu of land has been permanently acquired for this Project, including 34092.28 mu of cultivated land, accounting for 53.89% of the acquired land, which affects 35786 people, in which 12971.654 mu of land in Shanxi Province has been acquired (excluding resettled land), including 8285.52 mu of cultivated land, accounting for 63.87% of the acquired land, which affects 10356 people; 25431.458 mu of land in Shaanxi Province has been acquired, including 16930.4 mu of cultivated land, accounting for 66.57% of the acquired land, which affects 15482 people; 24856.91 mu of land in Ningxia Hui Autonomous Region has been acquired, including 8876.36 mu of cultivated land, accounting for 53.89% of the acquired land, which affects 9948 people. See table 2-1, 2-2, 2-3 and 2-4 for the detailed land acquisition. 2.2 Monitoring on material indexes of house demolition 13. By Dec. 2011, 929197.3675m2 of civilian house has been demolished, involving 26052 people from 6315 households, where 311943.93 m2 houses were demolished in Shanxi, involving 12241 people from 2936 households, 480727.9075 m2 houses were demolished in Shaanxi, involving 12032 people from 2936 households, and 136525.53 m2 houses were demolished in Ningxia Hui Autonomous Region, involving 1779 people from 399 households. See table 2-5, 2-6, 2-7 and 2-8 for the detailed civilian house demolition. 2.3 Monitoring on temporary land occupation 14. Temporary land occupation refers to the land borrowed temporarily within the construction period of the Project, including stock yard, spoil yard, production and living zones during construction, temporary construction access road and other land occupations. At present, there is no total amount of temporary land occupation and complete statistical data of various land areas borrowed from all counties (cities, districts), which is being collected by the Employer now. 2.4 Monitoring on scattered trees 15. Scattered trees affected by the Project include all kinds of scattered trees around houses of relocated households and in farmland to be felled or transplanted due to land acquisition for engineering construction. There are only statistics records for few woods of Shaanxi Province. Neither Shanxi Province nor Ningxia Hui Autonomous Region has detailed wood statistics record. See Table 2-9, for the detailed statistics record for few woods of Shaanxi Province.

RIFCIU-SWJTU 8 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Table 2-1 Summary of Permanent Acquired Land of Each Province or Autonomous Region for Taiyuan-Zhongwei-Yinchuan Railway

Unit: mu Farmland Othe Provin Subtotal Farmland Ree Land for rs Other Unused ce/Reg Total Irrigable Garden Forest Grass Fish d Constructi Subtota Vegetab Irrigable farmlan land ion Dry land paddy plot land land pond lan on l le plot land d field d Shanxi 12971.654 9960.7185 8285.52 2529.333 29.8905 69.8295 5656.467 744.411 58.2135 38.94 58.2135 1712.7705 1298.1645 Shaan 7116.55 25431.458 24988.53 16930.4 7326.779 9603.621 941.578 442.928 xi 2 Ningxi 10368.9 16.15 24856.91 24461.63 8876.36 3150.43 5725.93 5158.75 38.65 18.9 500.49 76.22 a 7 34092.2 17543.7 6139.26 Total 63260.022 59410.879 13006.542 29.8905 69.8295 20986.018 744.411 38.65 18.9 58.2135 2656.1885 1374.3845 16.15 8 36 8 From local resettlement department

Table 1-2 Summary of Permanent Acquired Land of Shaanxi Province for Taiyuan-Zhongwei-Yinchuan Railway

Unit: mu Farmland Cultivated land County Land for Unused Total of Garden Forest Nursery Subtotal of Total (district) Irrigable Vegetable Grass land construction land Dry land cultivated plot land garden farmland land plot land Wubu County 1.685 835.052 836.737 89.530 926.267 42.482 968.749 Suide County 975.275 620.987 1596.262 15.080 1611.342 206.951 1818.293 Zizhou 1870.975 219.205 2090.18 54.976 5.498 2150.654 14.955 2165.608

RIFCIU-SWJTU 9 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank County Hengshan 628.366 317.112 945.478 39.622 985.1 985.100 County Jingbian 3585.381 579.313 4164.694 4926.879 9091.573 53.510 9145.083 County Dingbian 2541.939 4755.110 7297.049 1990.465 936.080 10223.594 125.030 10348.625 County Total 9603.621 7326.779 0 16930.4 0 7116.552 0 941.578 24988.53 442.928 0 25431.458 From local resettlement department

Table 2-3 Summary of Permanent Acquired Land of Shanxi Province for Taiyuan-Zhongwei-Yinchuan Railway

Unit: mu

Farmland

Subtotal Cultivated land Land for Unused County and city Total Forest Grass Other Irrigable construction land Vegetable Irrigable Garden plot Subtotal Dry land paddy land land farmland plot land field Jiaocheng 1407.9015 1377.48 1306.665 0.9315 0 0 1305.7335 42.0915 28.7235 0 0 17.3715 13.05 County

Wenshui County 1421.946 1321.6185 1277.669 133.107 0 0 1144.5615 22.191 21.759 0 0 85.9125 14.415

Fenyang City 1917.759 1601.832 1171.397 1116.084 0 0 55.3125 155.2095 247.7145 26.811 0.7005 58.125 257.802

Lishi District 2185.9905 1190.391 858.537 594.372 0 0 264.165 31.3005 300.5535 0 0 571.5495 424.05

Liulin County 1304.487 536.241 377.4225 350.7555 0 0 26.667 33.8205 124.998 0 0 402.2085 366.0375

Lvliang City 8238.084 6027.5625 4991.69 2195.25 0 0 2796.4395 284.613 723.7485 26.811 0.7005 1135.167 1075.3545

RIFCIU-SWJTU 10 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Qingxu County 1289.0715 1236.8370 907.842 6.9615 0.0000 0.0000 900.8805 328.1220 0.0000 0.0000 0.8730 26.7420 25.4925

Xiaodian District 1709.9865 1431.3090 1203.62 36.1620 28.5405 69.8295 1069.0875 112.5495 103.0110 12.1290 0.0000 202.7760 75.9015

Taiyuan City 2999.058 2668.146 2111.462 43.1235 28.5405 69.8295 1969.968 440.6715 103.011 12.129 0.873 229.518 101.394

Development Zone of 1286.541 911.889 885.888 281.1285 1.35 0 603.4095 19.1265 6.8745 0 0 329.532 45.12 Jinzhong City

Yuci District 447.9705 353.121 296.481 9.831 0 0 286.65 0 0 0 56.64 18.5535 76.296

Jinzhong City 1734.5115 1265.01 1182.369 290.9595 1.35 0 890.0595 19.1265 6.8745 0 56.64 348.0855 121.416

Total 12971.654 9960.7185 8285.52 2529.333 29.8905 69.8295 5656.467 744.411 833.634 38.94 58.2135 1712.7705 1298.1645

Note: including and acquired for Taiyuan Hub but excluding Qingxu Freight Yard and resettled land. From local resettlement department

RIFCIU-SWJTU 11 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Table 2-4 Summary of Permanent Acquired Land of Ningxia Hui Autonomous Region for Taiyuan-Zhongwei-Yinchuan Railway

Unit: mu

Farmland (mu)

Farmland Unuse Land for Other Total Subtotal Subtotal County (district) Garden Forest Grass Fish Reed d land construction land (mu) Irrigable Dry Vegetable of of plot land land pond land (mu) (mu) (mu) land land plot cultivated farmland land

Zhongning County 1508.58 221.53 1730.11 687.81 788.55 5.43 18.9 3230.8 354.37 3590.17

Zhenluo Town of Zhongwei City 392.75 392.75 12.71 405.46 15.9 421.36

Hongsibao 1623.2 343.48 1966.68 888.67 368.05 3223.4 22.87 3246.27

Yanchi County 700.12 1905.72 0 2605.84 0 5127.54 2708.54 0 0 10441.92 0 21.57 0 10463.49

Wuzhong 64.03 572.16 636.19 1266.1 558.63 2460.92 1.9 2462.82

Lingwu City 110.37 107.54 217.91 2357.9 734.98 3310.79 73.28 36.21 3420.28

Yongning County 809.91 809.91 24.67 25.34 859.92 2.94 42.27 16.15 921.28

Jinfeng District 314.39 314.39 3.57 7.88 325.84 5.4 331.24

Local Agricultural Reclamation 202.58 202.58 202.58 Administration

Total 5725.93 3150.43 0 8876.36 0 10368.97 5158.75 38.65 18.9 24461.63 76.22 500.49 16.15 24856.91

From local resettlement department

RIFCIU-SWJTU 12 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Table 2-5 Summary of Demolished Civilian Houses for Taiyuan-Zhongwei-Yinchuan Railway

Total area of demolished houses in the rural area (m2) Cave Affected Cave Province dwelling Households population Brick-concrete Brick-tile Brick-earth-wood Earth and dwelling Makeshift (region) Subtotal built by Others (Person) house house structure wood house built by house bricks or earth stones Shaanxi 2980 12032 480727.9075 77839.495 67960.996 267219.78 10943.627 28416.72 28347.291 Shanxi 2936 12241 311943.93 56800.913 155065.86 83893.35 9141.2 7042.6 Ningxia 399 1779 136525.53 9806.93 15300.96 17331.13 21586.35 30529.95 13683.22 Total 6315 26052 929197.3675 144447.338 238327.816 351113.13 17331.13 32529.977 37557.92 65919.841 13683.22 From local resettlement department

Table 2-6 Summary of Demolished Civilian Houses of Shaanxi Province for Taiyuan-Zhongwei-Yinchuan Railway

Total area of demolished houses in the rural area (m2) Cave Affected Region / County dwelling Province Households population Brick-concrete Brick-tile Earth- Cave dwelling built Makeshift (City) (district) Subtotal built by (Person) house house wood house by earth (using area) house bricks or stones Yulin Wubu Shaanxi 185 745 18168.98 2163.96 653.85 7909.14 0 4209 3233.03 City County Yulin Suide Shaanxi 820 3284 198953.091 30391.8 33844.834 110055.33 2892.89 12293.52 9474.72 City County Shaanxi Yulin Zizhou 642 2570 88072.6815 11937.825 2589.522 67847.252 194.87 2157.25 3345.9625

RIFCIU-SWJTU 13 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank City County Yulin Hengshan Shaanxi 758 3120 124901.038 23471.19 9071.87 80679.86 70 8991.77 2616.348 City County Yulin Jingbian Shaanxi 308 1245 34158.69 8843.66 17163.34 728.2 313.21 144.18 6966.1 City County Yulin Dingbian Shaanxi 267 1068 16473.427 1031.06 4637.58 0 7472.657 621 2711.13 City County Total of Shaanxi Province 2980 12032 480727.9075 77839.495 67960.996 267219.78 10943.627 28416.72 28347.291 From local resettlement department

Table 2-7 Summary of Demolished Civilian Houses of Shanxi Province for Taiyuan-Zhongwei-Yinchuan Railway

Affected Total area of demolished houses in the rural area (m2) population Region / Cave dwelling Province County (district) Households Brick-concrete Brick-concrete Cave (City) built by Makeshift (Person) Total multi-storey single-storey dwelling built bricks and house house house by earth concrete Taiyuan City Xiaodian District 10 42 2248.98 1904.19 278.15 66.64 Taiyuan City Qingxu County 44 176 4584.514 128 4416.504 40.01 Subtotal of Taiyuan City 54 218 6833.494 2032.19 4694.654 0 0 106.65 Jinzhong City Yuci District 2 9 398 200 198 Shanxi Jinzhong City Development Zone 4 17 453.02 428.17 24.85 Subtotal of Jinzhong City 6 26 851.02 200 626.17 0 0 24.85 Lvliang City Jiaocheng County 34 144 1517.26 220.4 1248.92 47.94 Lvliang City Wenshui County 47 188 7339.27 7113.41 225.86 Lvliang City Fenyang City 55 2113 9515.64 5286.19 341 3361.55 439.9 87

RIFCIU-SWJTU 14 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Lvliang City Lishi District 1727 5500 171555.38 17571.9 104124.92 36340.18 8701.3 4817.08 Lvliang City Liulin County 1013 4052 114331.863 31490.233 36916.79 44191.62 1733.22 Subtotal of Lvliang City 2876 11997 304259.413 54568.723 149745.04 83893.35 9141.2 6911.1 Total of Shanxi Province 2936 12241 311943.93 56800.913 155065.86 83893.35 9141.2 7042.6 From local resettlement department

RIFCIU-SWJTU 15 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Table 2-8 Summary of Demolished Civilian Houses of Ningxia Hui Autonomous Region for Taiyuan-Zhongwei-Yinchuan Railway

Affected Affected Area of demolished houses (m2) households population Province Region/(City) County/district Makeshift Makeshift Brick-concrete Brick-wood Brick-earth-wood Earth-wood (household) (Person) Total earth-wood brick-wood Others structure structure structure structure structure structure Zhongning Zhongwei 246 1108 106488.2 8724.09 1973.66 13836.66 16550.81 17774.16 7678.32 11839.41 County City Zhenluo Town 15 70 4567.55 554.39 1973.66 740.3 670 238.84 204.39 185.97 Subtotal of Zhongwei City 261 1178 111055.75 9278.48 3947.32 14576.96 17220.81 18013 7882.71 12025.38 Wuzhong Hongsibao 16 77 4205.39 1904.91 69.18 1268.9 221.9 728.5 12 City Yanchi 42 191 4395.17 0 1299.46 1241.72 784.73 505.05 79.95 484.26 Ningxia Wuzhong City 2 9 381.79 135.3 188.49 58 Subtotal of Wuzhong City 60 277 8982.35 0 3339.67 1310.9 2242.12 784.95 808.45 496.26 Lingwu City 18 79 3332.01 193.59 883.91 896.39 686.6 229.46 237.77 204.29 Yinchuan Yongning 46 195 11430.04 98.4 6484.68 273 1259.96 1112.14 1244.57 957.29 City County Jinfeng District 14 50 1725.38 236.46 645.38 273.88 176.86 174.11 42.79 Subtotal of Yinchuan City 78 324 16487.43 528.45 8013.97 1443.27 2123.42 1515.71 1525.13 1161.58 Total of Ningxia 399 1779 136525.53 9806.93 15300.96 17331.13 21586.35 20313.66 10216.29 13683.22 From local resettlement department

RIFCIU-SWJTU 16 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Table 2-9 Summary of Statistics Records for Few Woods of Shaanxi Province

County Total Name Specification Unit Dingbian Jingbian Zizhou Suide Wubu Hengshan With no fruit Nr. 86 163 6329 137770 12961 1715 159024 With few fruits Nr. 131 164 1318 49815 7831 848 60107 With some Jujube tree Nr. 119 320. 1211 18656 3856 1433 25595 fruits With many Nr. 85 345. 3868 29240 5900 6142 45580 fruits With no fruit Nr. 13931 1896 465 29013 0 64 45369 Apple, pear, apricot and With few fruits Nr. 2608 875 236 4971 0 10 8700 With some other fruit Nr. 888 997 346 6753 0 147 9131 trees fruits With many Nr. 256 2151 1751 14462 0 5869 24489 fruits With a DBH Nr. 13566 32952 7365 163778 469 1010 219140 Poplar, less than 5cm straight With a DBH willow and Nr. 15335 13944 1427 4910 2667 229 38512 5-10cm other With a DBH unknown Nr. 16630 21935 961 4444 623 596 45189 10-20cm trees With a DBH greater than Nr. 16651 22882 2485 12079 824 8615 63536 20cm With a height Nr. 391 76 60 657 0 1184 less than 50cm With a height Nr. 441 1241 122 598 11 2413 50-100cm Landscaping With a height Nr. 5172 5160 58 2379 14 0 12783 coniferous 100-150cm tree With a height Nr. 40 2984 27 1894 41 0 4986 150-200cm With a height greater than Nr. 0 525 85 3053 1693 518 5874 200cm Willow used Rafter 488 280769 763 6 1576 283602 for rafters Jujube tree Mu 0 2.676 2.7310 0.0000 5.407

Nursery Fruit tree Mu 0 17.419 6.6508 0.5400 24.610 stock Poplar/Chinese scholar tree, Mu 0 22.402 3.1590 5.2875 30.848 etc. Herbs Mu 2 2.070 0.3800 1.0900 5.640

From local resettlement department 2.5 Monitoring on ground appurtenances and production facilities 16. Only ground appurtenances and production facilities affected by this Project in Shaanxi and Shanxi are recorded in detail, and some of those in Ningxia are recorded. See Table 2-10 and 2-11, for the detailed statistics of Shaanxi and Shanxi Province.

RIFCIU-SWJTU 17 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Table 2-10 Statistics of Ground Appurtenances and Production Facilities of Shanxi Province

County and district Total Item Unit Wenshui County Yuci Xiaodian Qingxu Liulin Lishi Fenyang Jiaocheng Jinzhong Fence ㎡ 2551.79 147.36 156.695 14594.992 37223.61 2510.3 3896.1 778.85 61859.697 Vegetable kiln ㎡ 106.31 533.2 1296.15 7276.4 444.5 50 9706.56 Gate Nr. 48 5 23 193.5 825 21 2 1 1118.5 Toilet ㎡ 229.69 20.48 204.37 1689.48 4474.02 138.6 85 10.1 6851.74 Heatable brick bed Nr. 80 26 768 2376 87 18 3355 Stove Nr. 102 4 42 1842 3044 125 18 4 5181 Telephone Nr. 34 8 35 357 708 15 2 1159 Redevelopment of agricultural electricity Household 49 23 404 802 61 19 2 1360 Cable Household 48 9 25 105 596 6 19 2 810 Artificial well (dry well) Nr. 47 7 21 113 379 567 Drain pipe m 1036 165 31.49 15242.9 15771.2 24 92 32362.59 Barton ㎡ 54.56 3 221.32 431.1 32.3 223 2 967.28 Storage pool m³ 75 54.4 853.56 5582.8 679.44 3.26 7248.46 Solar energy Nr. 8 2 5 17 8 19 59 Culvert m 1089.8 1753.7 2843.5 Indoor decoration ㎡ 20831.4 6205.35 4451.104 7280.86 88048.53 24836.8 1403.22 156.52 153213.784 Boiler Nr. 23 6 8 107 299 3 19 1 466 Heating area ㎡ 2804.96 1293.25 23760.12 52326.61 520.9 744 156.52 81606.36 Pigsty ㎡ 97.71 15.5 144.3 1377.61 2968.99 134 116.25 4854.36 Manure pit ㎡ 126 181.4 307.4

From local resettlement department

RIFCIU-SWJTU 18 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Table 10 (continued) County and district Total Item Unit Wenshui County Yuci Xiaodian Qingxu Liulin Lishi Fenyang Jiaocheng Jinzhong Cowshed ㎡ 79.52 94.8 1018.8 292.4 176.81 1662.33 Electricity pole Nr. 12 349 4 365 Sundries shed ㎡ 190.47 72.6 14.4 745.52 138.5 1161.49 Foundation of principal room ㎡ 1354.1 1354.1 Manhole Nr. 30 340 370 Slope ㎡ 5656.71 4486.45 109.39 12615.3 221 52.2 23141.05 Sanitary ware Set 38 22 82 199 1 19 361 Screen wall ㎡ 47.39 33.72 1918.012 357.9 12.1 18 2387.122 Drain pipe m 1843 171 20617.75 665.1 459.3 23756.15 Tap water Household 46 1 27 227 354 15 19 2 691 Stone mill Nr. 49 13 13 75 Cow fence ㎡ 76.5 76.5 Canal ㎡ 72 144 110472.9 8227.2 4 118920.1 Greenhouse ㎡ 3.62 1750 1753.62 Fruit tree Nr. 661 661 Electrician wire m 100 100 Cable m 560 560 Paving in the platform and courtyard m² 726 726 Water kiln m² 32.76 32.76 Vegetable and nursery stock green house ㎡ 1485.71 1500 217 37834.23 41036.94

From local resettlement department

RIFCIU-SWJTU 19 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Table 10 (continued) County and district Total Item Unit Wenshui County Yuci Xiaodian Qingxu Liulin Lishi Fenyang Jiaocheng Jinzhong Tomb 3996 3996 Hardening of courtyard (bitumen and bricks) ㎡ 946.13 46697.98 47644.11 Foot step ㎡ 226.27 226.27 Outdoor stair ㎡ 108 108 Subgrade ㎡ 551.08 120 671.08 Flower bed ㎡ 8.88 8.88 Earthwork m³ 3916.58 13000 16916.58 Mixed stonework m³ 2000 2000 Rolling door and window Nr. 6 5 21 32 Hardening of road ㎡ 9444.581 23270.1 32714.681 Sewage gas Household 4 65 69 Broadband (household) Household 13 2 15 Exterior ceramic tile ㎡ 2790 2790 Motor-pumped well Nr. 5 5 Power distribution line m 4800 4800 Transformer Set 2 3 1 6 Flood discharge channel m 1998 1998 River dike m 229 229 Security window Nr. 427 427 God statue Nr. 1 1 From local resettlement department

RIFCIU-SWJTU 20 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Table 10 (continued) County and district Total Item Unit Wenshui County Yuci Xiaodian Qingxu Liulin Lishi Fenyang Jiaocheng Jinzhong Fitness equipment Set 20 20 20 Power line Line, set 20 lines+5 sets lines+5 sets Circuit m 12000 12000 Water supply pipe m 1807.9 1807.9 Retaining wall m³ 7453.4 7453.4 Rail ㎡ 1262.09 1262.09 Subgrade and foundation ㎡ 8497.44 8497.44 Heating pipe Nr. 4 4 Vermicelli kiln ㎡ 46 46 Vermicelli drying platform ㎡ 22.75 22.75 Liquor distillation kiln Nr. 1 1 Vermicelli drying pole Nr. 150 150 Fish pond ㎡ 4765 4765 Carbon kiln ㎡ 64.68 64.68

From local resettlement department

RIFCIU-SWJTU 21 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Table 2-11 Statistics of Ground Appurtenances and Production Facilities of Shaanxi Province

County Total Item Specification Unit Dingbian Jingbian Zizhou Suide Wubu Hengshan Brick-concrete Nr. 2 35 52 231 10 190 520.000 Brick-wood or Gateway Nr. 20 44 34 60 8 5 171.000 brick-stone Others Nr. 13 61 19 10 12 44 159.000 House trough ㎡ 3241.09 0 848.16 405.2 704 2135.06 7333.510 Corral Nr. 153 756 874 1578 124 1646 5131.000 Masonry m 1540 6645 9324.75 24456.9 1580.13 10799.58 54346.360 Fence fence Earth fence m 6259.6 19437.9 52.9 62.3 1409.55 50 27272.250 Masonry Nr. 28 180 588 1212 75 848 2931.000 Toilet Others Nr. 20 82 169 274 52 41 638.000 Potato kiln Nr. 60 231 566 2370 197 1536 4960.000 Masonry Nr. 2 50 48 216 67 286 669.000 Cement Water kiln lightening Nr. 34 8 19 121 21 39 242.000 face Clay Nr. 1 1 2 5 9.000 Agricultural motor-pumped Nr. 124 113 25 13 31 0 306.000 well Multiple pipe 4 inches Nr. 42 139 0 30 211.000 well 6 inches Nr. 52 4 0 1 23 80.000 Hand pumped Nr. 14 86 0 2 95 197.000 well Potable water Masonry m 70.6 11.4 7115.2 12211.6 7844.33 27253.130 well Earth m 42 808.65 169.9 73.2 4 5333 6430.750 Tap water m 10558.5 39626.85 48707.5 113153.9 7481.6 84836 304364.350 pipe Threshing Nr. 27 2 1 1 0 31.000 ground Plastic ㎡ 25228.28 9740.72 3530.53 436.2 38935.730 greenhouse Brick kiln Nr. 23522.79 23522.790 Outdoor cement ㎡ 1199.19 4546.38 9 70965.743 1664.03 40304.1 118688.443 weighbridge Brick and stone lane m3 0 13208.638 89576.6805 8147.11 46466.36 157398.789 outside of courtyard New tomb Nr. 163 151 101 902 260 834 2411.000 Tomb Old tomb Nr. 364 538 62 349 30 1343.000 From local resettlement department 2.6 Monitoring on infrastructure 17. Special facilities affected by the Project mainly include power lines and communication optical cables; however, no complete statistical data is available at present, to which attention will be paid in next monitoring report. 2.7 Monitoring on impacts on enterprises and institutions 18. Altogether 281 enterprises, institutions, and schools etc. large houses along the line are demolished – 170 in Shanxi Province, 55 in Shaanxi Province and 56 in Ningxia Hui Autonomous Region. There are 17 schools affected by this Project, including 12 schools in Shaanxi Province and 5 schools in Shanxi Province. See Appendix 1 for details.

RIFCIU-SWJTU 22 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 3 Monitoring on compensation standard and compensation fee 3.1 Monitoring on compensation policy 19. Land acquisition and house demolition compensation shall follow three principles, namely, in strict accordance with laws and policies issued by the state and local government, protocols agreed between the Ministry of Railways and all provinces and districts, as well as compensation standards specified in Resettlement Action Plan for Taiyuan-Zhongwei-Yinchuan Railway jointly approved by ADB and the Ministry of Railways. Essentially, these three principles reflect the same content, that is, to ensure affected persons to resume their production and living standards to the same level as before as soon as possible; replacement cost is the objective basis to judge if the compensation standards are reasonable. 3.1.1 Policy basis 20. Compensation for land acquisition and relocation for Taiyuan-Zhongwei-Yinchuan Railway Construction is carried out as per Chinese law, codes, and policies. Based on agreements of the Ministry of Railways and each province/region, each province/region shall formulate the basic principles and specifications for compensation for compensation and relocation, and each district/county shall prepare the detailed compensation and relocation plans. The following policies and documents shall be applicable to formulation of compensation and relocation policies. 1. Land Administration Law of the People’s Republic of China, August 1998 (revised in accordance with the decisions made on August 28, 2004 [Concerning the Decision of Revising “Land Administration Law of the People’s Republic of China]) 2. Law of the People’s Republic of China on Urban Real Estate, April 1994; 3. Decision of the State Council on Deepening Reformation and Strengthening Land Administration, GF [2004] No.28; 4. Implementation Regulations on Land Administration Law of the People’s Republic of China, Dec. 1998; 5. Regulation on the Dismantlement of Urban Houses, June 1991; 6. Regulations on the Protection of Basic Farmland, December 1998; 7. Guideline on Improving Land Requisition Compensation and Resettlement System, GTZF (2004) No.238; 8. Measures on Implementation of Land Administration Law of the People’s Republic of Shanxi Province, Sept. 26, 1999; 9. Measures on Implementation of Land Administration Law of the People’s Republic of China of Shaanxi Province, Nov.30, 1999; 10. Regulation on the Dismantlement of Urban Houses of Shaanxi Province, formulated by the National People’s Congress of Shaanxi Province on Dec. 2003; 11. Measures on Implementation of Land Administration Law of the People’s Republic of China of Ningxia Hui Autonomous Region, Nov.17, 2001; 12. Notice on Construction of Taiyuan-Zhongwei-Yinchuan Railway (SZBF [2006] No.50), issued by the Shaanxi Provincial Government Office; 13 Document of the Ningxia Hui Autonomous Region Government Office: Notice RIFCIU-SWJTU 23 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank on Forwarding of Compensation Criteria for Land Acquisition and Relocation for Taiyuan-Zhongwei-Yinchuan Railway and Yanchi-Zhongning Expressway issued by the Department of Land and Resources of Ningxia Hui Autonomous Region (NZBF[2005]No.241) 14. Document of the Ningxia Hui Autonomous Region Government Office: Notice on Forwarding of Detailed Implementation Measures on Compensation Criteria for Land Acquisition and Relocation for Taiyuan-Zhongwei-Yinchuan Railway and Yanchi-Zhongning Expressway issued by the Department of Land and Resources and Transport Department of Ningxia Hui Autonomous Region (NZBF[2006]No.11) 15. Document of Shanxi Development and Reform Commission (JFGJTF [2007] No. 147); 16. The Department of Land and Resources of Shanxi Province (JGTZF [2006] No.101); 17. Document of Yulin Municipal Government (YZF [2006] No. 102): Notice on Land Acquisition and Dismantlement of Taiyuan-Zhongwei-Yinchuan Railway; 18. Notice on Compensation Criteria for Land Acquisition for Special Construction (downtown are of Taiyuan City) of Taiyuan-Zhongwei-Yinchuan Railway (JGTJYZ (2007) No. 22.) 19. Notice on Issuance of Implementation Measures for Compensation Criteria for Land Acquisition of Ningxia Hui Autonomous Region and County (City and District) by Ningxia Hui Autonomous Region Government (NZF [2010] No. 3); 20. Notice on Printing and Issuance of Compensation Criteria for Land Acquisition and Relocation for the Added Second Line Project of Baotou-Lanzhou Railway in Ningxia by the Ningxia Hui Autonomous Region Government Office (NZBF [2010] No.43) 3.2 Monitoring on compensation standard 3.2.1 Changes of land acquisition compensation standards 21. Compensation criterion for Taiyuan-Zhongwei-Yinchuan Railway of Ningxia Hui Autonomous Region before 2010 was based on NZBF [2005] No.241 and NZBF [2006] No.11 and the compensation criterion for this Project after 2010 was based on NZF [2010] No.3 and NZBF [2010] No.43). Before 2010, compensation criterion for land acquisition was based on category of the acquired land, but the compensation criterion after 2010 was based on category of farm land with a considerable increase of compensation amount. In accordance with the original compensation criterion, compensation for farmland is 2500-12500 yuan/mu, but that in the new standard is 2709-58000 yuan/mu. The new compensation criterion is applicable to the E&M works of this Project. See Attachment 2 for the detailed compensation criterion of Ningxia Hui Autonomous Region. 22. Except most areas still adopting original compensation standards, the land management department of Shanxi Province adjusts the compensation standards for the land acquisition within Taiyuan City for Taiyuan-Zhongwei-Yinchuan Railway. The issued policy is Notice about compensation standards for land acquisition for special construction (urban district of Taiyuan City) of Taiyuan-Zhongwei-Yinchuan Railway (JGTJYZ (2007) No. 22.)It stipulates: 1) Average annual output values of three years: 1,300 yuan/mu for irrigable land, RIFCIU-SWJTU 24 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 1,600 yuan/mu for vegetable field, 900 yuan/mu for dry land, 2,000 yuan/mu for orchard (nursery), 600 yuan/mu for unused land. 2) Compensation standards for permanent acquisition of various lands: Acquisition of agricultural land (irrigable land, vegetable land, orchard): 9 times the land compensation fee, 10 times the resettlement compensation fee and double the compensation for young crops, totaling 20 times compensation, namely, 26,000 yuan/mu for irrigable land, 32,000 yuan/mu for vegetable land, and 40,000 yuan/mu for orchard. Acquisition of agricultural land (dry land): 8 times the land compensation fee, 10 times the resettlement compensation fee and double the compensation for young crops, totaling 19 times compensation; namely, 17,100 yuan/mu for dry land. Acquisition of unused land: 5 times the annual output value of land as the compensation fee; 2,000 yuan/mu for ground appurtenance (scattered trees, non-pumping well, tomb); separate agreement for compensation for a large area of economic forests. 3) Temporary land occupation shall be compensated based on the principle of one-year compensation for one-year occupation (planting year.).The Employer shall give productivity compensation after reclamation by 200 yuan/mu·a; 4) Farmland reclamation fee: 6,000 yuan/mu; 5) Land management fee shall be paid from provincial land and resources departments to land and resources administration departments of all levels by 2% of total land acquisition compensation. 6) Various compensations for forest land shall be taken charge of by forestry administration departments. 3.2.2 Changes of house demolition compensation standards 23. Compensation criterion for Taiyuan-Zhongwei-Yinchuan Railway of Ningxia Hui Autonomous Region befor 2010 was based on NZBF [2005] No.241 and NZBF [2006] No.11 and that after 2010 was based on NZF [2010] No.3 and NZBF [2010] No.43). After 2010, compensation criterion for house demolition was greatly increased. The former compensation criterion is 450 yuan/m2 for brick-concrete structure and 350 yuan/m2 for brick-wood structure, and now the new compensation criterion is 650 yuan/m2 and 500 yuan/m2 respectively. The new compensation criterion is applicable to the E&M works of this Project. For the new criterion, refer to Appendix 3. 24. The external monitoring organization learned in this field survey and evaluation that, Shanxi Resettlement Department had substantially raised the house demolition compensation standard since 2008 via increase of subsidies for house decoration as an alternative. 25. According to the introduction of Bi Junming from Shanxi Real Estate Company, who is in charge of appropriation of compensation funds for land acquisition and house demolition and coordination of house demolition, within Shanxi Province, since 2008, apart from compensation based on original policies and standards, house demolition compensation has been increased in the name of compensation for decoration. Meanwhile, within the urban planning area, compensation fee is increased through increasing percentage on basis of original houses. The specific operations are: RIFCIU-SWJTU 25 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 26. Payment methods for house decoration subsidy: 1) If the house demolished is an old one, determine the decoration subsidy area as 2 times the original demolition area and calculate the fee based on 150 yuan/m2, namely, house decoration subsidy = original demolition area×2×150 yuan/ m2; 2) If the house demolished is a new one, determine the decoration subsidy area as 3 times the original demolition area and calculate the fee based on 150 yuan/m2, namely, house decoration subsidy = original demolition area×3×150 yuan/ m2; by this way, the compensation standard for original house is raised actually, at least 300 yuan increased per square meter on basis of original policy. 27. In addition, Shanxi Province raises the compensation standard for demolished house in the urban built-up areas and planning areas from the original standard to varying degrees. Namely: 1) Compensation standard for new house demolished in the urban built-up areas rises 40% and that for old house rises 20%; 2) Compensation standard for new house demolished in the urban planning areas rises 20% and that for old house rises 10%. Abovementioned subsidies can be adjusted by each county/district based on the actual condition during execution. 28. The follow-up tracing of external resettlement monitoring and evaluation organization in field survey shows that, there’re different conditions existing during actual increase of subsidy for house decoration in the counties/districts along the Taiyuan-Zhongwei-Yinchuan Railway in Shanxi Province. 1) During compensation for house demolition at Beige Town, Xiaodian District, Taiyuan City, the standard rises 30% from the unified standard in Shanxi Province, and the compensation is calculated according to the formula of demolition area *3*150 yuan/m2.Then, the average compensation price at actual execution has reached about 1,300 yuan/m2. 2) In Fenyang City, Lvliang City, the decoration subsidies are appropriated by Shanxi Real Estate Company according to the formula of total demolition area *2*120 yuan/m2.During actual execution, overall balance has been done. Finally, the compensation standards for the demolished house rise to: 720 yuan/m2 for brick-concrete bungalows (20 yuan/m2 increased from the original policy), 500-680 yuan/m2 for brick-concrete cave houses (over 100 yuan/m2 increased from the original compensation standard), 100-220 yuan/m2 for earth-wood cave houses (less increase from the original plan), 100 yuan/m2 for simply-equipped houses (not increased from original standard); 3) As to Lishi District in Lvliang City, on basis of unified standards determined in the province, 20%-40% is raised in urban built-up areas and 15%-30% is raised in urban planning areas. Meanwhile, the inner decoration compensations are appropriated by Shanxi Real Estate Company to the District Government according to the formulae of 130 yuan/m2*building area of demolished houses and 150 yuan/m2*building area of demolished houses successively. Then, the District Resettlement Department allocates the compensations after unified balance. The executive standards for final appropriation to the affected persons are: 840 yuan/m2 for brick-concrete buildings, 560 yuan/m2 for brick-concrete bungalows, 420 yuan/m2 for cave houses in built-up areas (excluding decoration subsidy); 820 yuan/m2 for brick-concrete buildings, 560 yuan/m2 for bungalows, RIFCIU-SWJTU 26 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 420 yuan/m2 for cave houses in planning areas (excluding decoration subsidy); 400 yuan/m2 for bungalows, 260-360 yuan/m2 for cave houses in rural areas. The decoration fees are allocated according to the actual condition. 4) For Liulin County in Lvliang City, original standards are still adopted. If there’s no inner decoration, decoration subsidy will not be paid; if there is, the subsidy will be paid based on 50-150 yuan/m2. 29. Above conditions show that, compensation standards for house demolition are actually raised in the name of house decoration fee in Shanxi Province. The improvement of house compensation standards is very positive to strengthen the new house rebuilding capability of the affected persons and meet the requirement of RAP of ADB on the Project, which reflects the pragmatic attitude of Shanxi Province in the actual land acquisition, house demolition and resettlement for Taiyuan-Zhongwei-Yinchuan Railway and good faith to meet the requirements of resettlement policy of ADB. 3.2.3 Conclusion of monitoring on compensation standard 30. This time, monitoring group consulted original receipts of fund appropriation in Railway Headquarters and local coordination offices and interviewed affected persons to focus on investigating the implementation of compensation standards. It proved that counties and districts along the line in the affected provinces and region have improved compensation standards to varying degrees based on RAP, and therefore, actual compensation standards are higher than those specified in RAP. Through investigations in all provinces, regions and counties, the monitoring group found that Taizhongyin Railway Co., Ltd. of the Ministry of Railways and resettlement departments of local government have taken into full account the interests of dislocated persons responsibly in many tiny items, made adjustments to give rise to quite a few intangible and tangible compensations, which are contents out of RAP. For example, resettlement mode of overall planning and centralized construction is available for relocated households, the five availables and one leveling (water, power, gas supply and road, communication accessible and site leveling) as well as community environment are funded by resettlement departments. To take another example, the railway construction contractor, on request of local government, has made great efforts and invested many funds in ditches, culverts, access roads and temporary bridges, all of which are not incorporated into compensations, and dislocated persons and their communities, villages and groups are genuine beneficiaries. 3.3 Fund appropriation monitoring 31. The monitoring group has made fund appropriation and its channels as an important monitoring content in field investigation. Compensations for temporary land occupation in resettlement funds shall be paid by Taizhongyin Railway Co., Ltd., while other expenses shall be funded by local government and then appraised as capital stock. Thus, the monitoring groups took step-by-step methods to follow up the fund appropriation, that is, they first go to Railway Headquarters of Taizhongyin Railway Co., Ltd., Shaanxi Railway Investment Corporation, Shanxi Real Estate Company, Ningxia Funing Investment Group Co., Ltd. and other fund disbursement organizations to look into allocation time and amounts, then to the organizations receiving funds to check the time and amounts of the funds paid to the grass roots, and finally to grass-roots villages and groups to verify the payment after the funds have been put in place and utilization of land compensations. Via review level by level, the monitoring groups can confirm that, except that the construction capital for RIFCIU-SWJTU 27 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank resettlements in Shaanxi and newly increased compensations in Shanxi are not in place, all compensations for land acquisition, house demolition and resettlement for Taiyuan-Zhongwei-Yinchuan Railway have been fully paid by the local investment companies to local governments, who have then paid them sufficiently to the grass-roots villages and groups and affected persons. The following is two conditions not settled yet: a part of management fees have not been paid to local government and some differences of final settlement have not been paid. The former is because land acquisition procedures have not been gone through, and a few of remaining management fees will be paid once formalities have been handled, and the latter is caused by differences between planned amounts and actual ones, and will be finally settled once and for all by refund for any overpayment or a supplemental payment for any deficiency 32. According to data provided by the resettlement department of each local government, 2.670693657 billion yuan of compensation for resettlement for Taiyuan-Zhongwei-Yinchuan Railway has been put in place, in which 352,877,813 yuan for Ningxia Hui Autonomous Region, 1.01584 billion yuan for Shaanxi Province, and 1.301975844 billion yuan of Shanxi Province, including 492,263,597 yuan of land acquisition cost and 809,712,247.46 yuan of dismantlement and forest land costs and other costs. But the total shareholder capital fund for resettlement planned by Taizhongyin Railway Co., Ltd is 1.2 billion yuan, so the final actual resettlement expense is far more than the planned one.The main reason is increase of relocation costs, especially for funds used in construction of the concentrated resettlement site in Shaanxi Suide County and Shanxi. See Table 3-1, 3-2, 3-3, 3-4, 3-5 and 3-6 for the appropriated costs in detail. Table 3-1Fund Appropriation for Taiyuan-Zhongwei-Yinchuan Railway of Shaanxi Yulin City Unit: 10,000 yuan County/ district Calculated amount Appropriated amount Remarks Wubu County 4750.4862 5165 The Department of Shaanxi Suide County 31229.707 36300 Province has appropriated Zizhou County 12744.2781 13250 1,050,201,694 yuan in total, Hengshan County 14270.8518 14399 including 980,300,000 yuan of Jingbian County 13327.3583 13100 compensation funds (including Dingbian County 15418.3591 15180 10,300,000 yuan of administration Paid reclamation costs 4190 cost for acquired land); 41,900,000 yuan of land reclamation fund (appropriated to reclamation family) and 28,001,694 yuan of forestry Total 91741.0405 101584 vegetation restoration fund (appropriated to the Ministry of Forestry by the Provincial Government Office). From local resettlement department

Table 3-2Summary of Appropriated Funds of Ningxia Hui Autonomous Region

S/N Item Appropriated fund (10,000 yuan) I Land acquisition 9347.0839 II Demolition 3260.3017 III Large-scale demolition 1829.3800 IV Young crop and appurtenance 6240.0348 1 Young crop 493.0190 2 Appurtenance and others 5747.0249

RIFCIU-SWJTU 28 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank V Fees and taxes 11789.6472 1 Farmland reclamation cost 7074.8840 2 Forest vegetation restoration cost 3200.9017 3 Grassland vegetation restoration cost 965.4860 4 Administration cost of acquired land 548.3755 5 Farmland occupation tax VI Work expenses 1556.9411 VII Commission 1023.6536 VIII Others 240.7300 Total 35287.7813 From local resettlement department

RIFCIU-SWJTU 29 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

3-3 Summary of Appropriated Funds for Land Acquisition of Shanxi Province Unit: 10,000 yuan Compensation Category Compensation for Work Administration cost of Reclamation Acquisition and Land reclamation for land Other costs Total County appurtenance expenses acquired land cost disposal area cost acquisition Qingxu County 5747.4866 2483.1019 35 71.7102 8337.2987 Xiaodian 3457.4201 1473.0368 30 96.6 5057.0569 District Yuci District 1643.7848 176.83 15 1.092 207.536 200 2244.2428 Development Zone of 3553.0521 524.9182 30 6 4113.9703 Jinzhong City Lishi District 7138.2566 793.4435 35 100 837.0884 983.721 9887.5095 Jiaocheng 3094.1261 1745.7099 30 62.7429 967.7115 94.0424 43.0184 6037.3512 County Wenshui 2960.7619 991.3852 30 599.3753 71.7102 375.018 5028.2506 County Fenyang City 2374.9753 807.7643 35 63.039 1123.6985 4404.4771 Liulin County 1899.9147 458.2745 30 62.8223 386.4651 495.8 782.926 4116.2026 Total 31869.7782 9454.4643 270 289.6962 2998.1763 835.8628 3508.3819 0 49226.3597 From local resettlement department

3-4 Summary of Unappropriated Funds for Land Acquisition of Shanxi Province Unit: 10,000 yuan Added land Resettled land Total County Farmland Unappropriated Land acquisition Reclamation Reclamation Appurtenance (district) Appurtenance Compensation reclamation cost compensation cost cost cost Xiaodian 468.4534 2208.6 8.1 2685.1534 Qingxu 1702.8 20.2005 1723.0005 Yuci 0 Development 1301.1848 578.5529 650.9565 71.6754 Zone Jiaocheng 20.2179 0.6536 2.5641 610.9356 97.1943 731.5655 Wenshui 23.1673 0.8044 3.7538 37.2036 64.9291

RIFCIU-SWJTU 30 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Liulin 9.4536 0.3605 1.6821 11.4962 Fenyang 1054.2569 1054.2569 Lishi 45.9277 0.6311 2.9452 1911.4666 72.8665 2033.8371 Total 98.7665 2.4496 10.945 3569.4085 134.3979 5616.6134 99.9759 72.8665 9605.4233 From local resettlement department

3-5 Summary of Compensation for Demolish and Recovery of Forest Land of Shanxi Province Unit: yuan Cost for temporary resettlement (including Compensation Compensation Water Item Compensation for temporary Work Compensation Relocation of for cracks in for enterprise conservancy Unit houses demolish resettlement expenses for forest land roads the houses relocation facilities transitional cost and relocation cost) Wenshui 7363881.55 121730.00 400000 1277835.25 6418657.17 6916977.7 5659000 4730000 Liulin 74464736.21 5140935.24 5401768.5 17079000 18743629.77 604000 4454000 Fenyang 6760147.50 142450 835716 10860873 41244812.82 3294100 Lishi 144151751.75 8241554.13 950000 17295377.65 26209000 21869158.1 1506400 6445000 Jiaocheng 1412655.85 88060 215000 736733 8482792 7901571.76 10175000 Xiaodian 3485235.27 100387.64 2154558.5 22398800 833872.8 6700000 2065000 Qingxu 2975242.13 131790.62 60000 913612.6 700000 989828.7 6397000 3994000 Jinzhong City 700000.00 2000000 Yuci District of Jinzhong City 222575.00 300000 9275000 2283600 Development Zone of Jinzhong City 254772.45 16694.32 9073 32020937 1456220.3 7900000 1188000 Ruiyou 0 0 Yongxin 0 0 Huacheng 0 0 Ancient architecture Jiahui Consultancy Company China Communication Construction Financial consultancy

RIFCIU-SWJTU 31 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Design of forest land Water resources prospecting and architecture design institute Social security funds The Provincial Water Resources Department 23000000 Work expenses of the provincial real estate company Conference review cost Total 241790997.71 13983601.95 1625000.00 30924674.50 133445059.17 99956071.95 64225000.00 26170100.00 From local resettlement department

Continued Waste disposal Occupying area Return of demolish and transportation of roads and dry Others cost by Total Remarks cost channels Southwestern ring Including 52,000 yuan of nursery Wenshui 509130 2298000 35695211.67 greenhouse Including 240,000 yuan of supervision cost for the overall relocation and Liulin 123240 36249000 162260309.72 restoration of Dajue Temple and 200,000 yuan of relocation and transition cost. Including 320,000 yuan for two cultural Fenyang 542850 920000 64600949.32 relics Lishi 8000000 316590 44068000 279052831.63 Non-standard project and its pipelines Jiaocheng 1133430 30145242.61 Including 3 million yuan of tomb Xiaodian 867420 3600000 -4088823 38116451.21 relocation cost Qingxu 595290 2843417.05 19600181.10 Jinzhong City 2700000.00 Returned cost of vegetable greenhouse and southwestern ring includes 200,000 Yuci District of Jinzhong City 348000 253155 52500 -6340837.5 6393992.50 yuan of work expenses appropriated by Jinzhong City Vegetable greenhouse and relocation of Development Zone of Jinzhong City 600000 100500 4382185.2 47928382.27 natural gas pipeline Ruiyou 392797 392797.00 Assessment cost

RIFCIU-SWJTU 32 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Yongxin 194488 194488.00 Assessment cost Huacheng 571969 -82623 489346.00 Assessment cost Ancient architecture 11466000 11466000.00 Cost for relocation of Dajue Temple Jiahui Consultancy Company 2161600 -20451.1 2141148.90 Auditing cost China Communication Construction 2000000 2000000.00 Financial consultancy 200000 200000.00 Design of forest land 1000000 1000000.00 Water resources prospecting and architecture 101000 101000.00 design institute Social security funds 74658856 74658856.00 Cost for recovery of water source in The Provincial Water Resources Department 23000000.00 Lishi and Fenyang section Work expenses of the provincial real estate 7678331.93 -113998.4 7564333.53 company Conference review cost 10726 10726.00 Total 10948000.00 4441605.00 192848870.18 -10646733.00 809712247.46

From local resettlement department

3-6 Detailed Fund Appropriation of Ningxia Hui Autonomous Region S/ County Hongsib Wuzho Yanchi Zhongni Zhongw Railway Jinfeng Lingwu Yongnin Reclamation Departme Taizhongy Railway Amount N Item ao ng City ng ei maintenan g Administrati nt of in constructi (yuan) ce section on Land and Railway on office Resource Company of s of Ningxia Ningxia I Land 3509901 470184 243220 6822535 104205 80626 58457 908049 144880 2595636 1748592 acquisition 3 3 15 3 20 99 2 02 99 II Dismantlem 1010684 87953 104919 2487999 133215 47489 827902 290302 3256580 ent 9 7 1 4 2 2 III Special 0 compensatio 0 n

RIFCIU-SWJTU 33 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

IV “Three 0 supplies and 0 one leveling” V Work 1211143 333200 156298 2686350 358888 33016 654223 557839 4672878 934165 2179718 1548155 expenses 5 1 0 VI Others 12813300 1281330 0 8 08 VI Total 3792084 512299 269341 9580970 1211155 80626 66508 105626 179488 13280588 3459481 I 0 6 99 1 9 54 17 63 6 41 From local resettlement department

RIFCIU-SWJTU 34 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

4 Monitoring on Resettlement Results 4.1 Monitoring on permanent land acquisition and resettlement results 33. Compensation and resettlement department for land acquisition for Taiyuan-Zhongwei-Yinchuan Railway offers several resettlement modes to affected persons, including land resettlement, cash compensation and social security. The resettlement mode adopted in the specific places is determined by local villagers themselves.These resettlement modes are in continuous utilization.From the field survey results of external monitoring, evaluation and survey groups, most places along Taiyuan-Zhongwei-Yinchuan Railway employ the resettlement mode of direct cash compensation and a small number of affected villages adopt the mode of land adjustment.Generally speaking, people affected by land acquisition have been compensated and resettled appropriately, and the production recovers to the various degrees. 34. In Ningxia Hui Autonomous Region, except few affected villages selecting land adjustment mode, in most villages, the affected persons are directly given with compensations; in Shaanxi Province, the mode of cash compensation is adopted for all except that some seriously affected villages choose social security resettlement mode as well; and in Shanxi Province, cash compensation mode is employed mostly except few villages taking the mode of land adjustment. 35. People in the two seriously affected villages in Suide County, Shaanxi Province – Dingjiagou Village and Shilipu Villages have been resettled as urban citizen with 27,800 yuan of resettlement compensation. At the same time, all the affected people has been compensated with the minimum living standard insurance, social pension insurance, trainings and relevant job opportunities. 36. On the whole, the uniform compensation policies and standards are implemented for land acquisition and house demolition in Shanxi province. In local areas, such as the suburb of Taiyuan City, Mucun Town of Liulin County in Lvliang City and urban planning areas of Lishi District, the compensation standard is increased with the highest compensation up to 60,000 yuan/mu. Now, only compensation for 10 mu lands in Xiaodian District of Taiyuan City has not been paid, while the rest has been appropriated. The social security of land-lost farmers which is being promoted in China now has not been carried out for the farmers with land acquisitioned for Taiyuan-Zhongwei-Yinchuan Railway Construction Project in Ningxia Hui Autonomous Region and Shaanxi Province but has been propagated and promoted in villages in Shanxi Province. According to the field survey of external monitoring and evaluation groups, 14,000-18,000 yuan/person is required for purchase of social security, which is assumed jointly by the county, rural collective and the affected person, with proportion of 3:2:5.Meanwhile, Shanxi Province issues the social security policy for land-lost farmers. The compensation for every acquisitioned land will be paid as per five times of the unified average annual output value of the land acquisitioned of each county by the company occupying the lands, based on the current compensation standard, which will be transferred into the county financial special account of social security funds of farmers loosing their lands for social security payment. In May, 2009, the General Office of Shanxi Provincial Government issued Notice about fulfillment of social security costs for land-acquisitioned farmers (JZBF [2009] No. 72), which will put and promote the social security of land-acquisitioned farmers in Taiyuan-Zhongwei-Yinchuan Railway Construction Project into practice. At present, this work is under way. Up until today, 80 million of social security insurance fund has been transferred to the Department of Human

RIFCIU-SWJTU 35 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Resources and Social Security of Shanxi Province. 4.2 Monitoring on house demolition and resettlement results 37. The mode of resettlement of persons affected by house demolition in all places along Taiyuan-Zhongwei-Yinchuan Railway is determined by the type of affection. 38. The compensation standards for house demolition in villages are determined according to the issued compensation policies, standards and procedures for house demolition. At house demolition, pay 50-60% of total compensations in a dump sum or in advance; upon the completion of house demolition, pay the rest 40-50% once and for all. Bank transfer is generally used for payment. The resettlement departments notify the bank to directly transfer the funds in the special account to the accounts of the affected households based on the confirmed list of affected households. After the affected persons get the compensations, there are mainly two modes of new house reconstruction: for the villages with relatively concentrated house demolition, the resettlement departments acquisition the resettlement lands and complete the “three supplies and one leveling” (water supply, power supply, access road and site leveling) to freely allocate the lands to the affected households for self-construction of new house or to directly construct the resettlement houses and then allocate to the affected persons. The persons affected by house demolition all have obtained the supports such as allowances for house demolition and relocation, subsidies for transitional house rent, etc. As to the households with timely house demolition based on the uniform arranged time, reward has been given. 39. Generally, it is different of the specific house demolition and resettlement methods formulated at the places due to different specific conditions. Till this external monitoring, evaluation and survey, there is also difference in progress conditions of house demolition and resettlement. 40. In Ningxia Hui Autonomous Region, disperse resettlement mode is mainly taken. In the whole region, there’s only one centralized resettlement site in Zhongning County, which is resettled as required by construction of the new socialistic rural communities. All households affected by house demolition have constructed and moved in the new houses with the help of local resettlement departments. So the Resettlement Department does not need to pay any construction expenses for resettlement site. 41. Disperse resettlement mode and centralized resettlement mode are combined for house demolition and resettlement in Shaanxi Province. In consideration of difficulty in disperse resettlement due to relative concentration of relocated households involved in house demolition for Taiyuan-Zhongwei-Yinchuan Railway Project within Shaanxi Province and vast population and limited land in most villages affected by house demolition, unified land acquisition management office of Department of Land and Resources of Shaanxi Province organized relevant personnel of Taizhongyin Railway Co., Ltd., Land and Resources Bureau of Yulin City, Project Design Section, resettlement departments of governments of Wubu County, Suide County, Zizhou County and Hengshan County to hold a meeting and also issue meeting minutes. In this minutes, centralized resettlement was decided for the relocated households from Wubu County, Suide County, Dingbian County, Zizhou County and Hengshan County. 27 places were arranged for over 1,500 households. For the construction of these resettlement places, 143,830,000 yuan was approved for “three supplies and one leveling” at the resettlement places. Later, Suide Station was removed, and one centralized resettlement place was increased. At present, except 2 resettlement places in Suide under construction, other relocated households have reconstructed and moved in the new houses. Construction of the resettlement site in Shilipu has been completed already, and the homestead has been allocated to each affected household. RIFCIU-SWJTU 36 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank It is estimated that in April 2012, construction of new houses will begin. And construction of Dingjiagou Resettlement Site has been almost completed. But the election of village cadres is still unfinished, so allocation of homestead is postponed. Once the election is completed, allocation of homestead and construction of new houses will begin. See Table 4-1 for the concentrated resettlement sites in Shaanxi Province. 42. House demolition progress in Shaanxi Province: the compensation for house demolition is paid not only as per the original standards, but also the compensation for decorations (old house: compensation for house demolition = demolition area × 2 × 150 yuan/m2; new house: compensation for house demolition = demolition area × 3 × 150 yuan/m2), which makes the compensation standard increase 300-400 yuan/m2. In addition, the compensation standard for new house demolition in the built-up areas increases 40% and that for old house increases 20%; the compensation standard for new house demolition in the planning areas increases 20% and that for old house increases 10%. The compensation standards of each county can be adjusted based on the actual conditions. The procedure of compensation appropriation: the compensation items specified in the uniform compensation and resettlement documents of the Province should be compensated as per the provisions in the document. As for actual condition not specified in the document, it should be paid according to methods determined in the minutes of meeting discussed by each party. The appropriation procedure of land acquisition compensation: the required quantity of land acquisition and house demolition should be reported by the county firstly and signed by Taizhongyin Railway Co., Ltd., Construction Company, Design Company, Supervisor, Real Estate Company and Development and Reform Commission. Then the Real Estate Company will appropriate the capital. The appropriation procedure of house demolition compensation: Real Estate Company - County Finance Bureau or Coordination Group - Village - Households; the appropriation procedure of land acquisition compensation: Real Estate Company - Provincial Land and Resources Bureau - County Land and Resources Bureau - Village - Households; the appropriation procedure of forestry compensation: Real Estate Company - Provincial Forestry Bureau - County Forestry Bureau - Village - Households. 43. Most displaced households in Shanxi Province have built new houses already or are building new houses except only tow villages. One is Beige Village in Xiaodian District, because their resettlement site is not finally determined; and the other is a resettlement site with almost 200 households in the Lishi District of Lvliang City, because their homestead is not allocated for the election of village cadres is not finished. See Table 4-2 and 4-3 for the concentrated resettlement sites in Shanxi Province. Table 4-1 Summary of Construction of Resettlement Sites in Shaanxi Province Cost S/N Name (10,000 yuan) Including 498,000 yuan paid by the 1 Zhangjiayan Village, Songjiachuan Town, Wubu 322.0612 Railway Company 2 Lougou Village, Yihe Town, Suide 310.5089 3 Xizhigou Village, Yihe Town, Suide 68.4251 4 Hejiajian Village, Yihe Town, Suide 551.9697 5 Huobaiwan Village, Yihe Town, Suide 136.193 6 Yangjiaqu Village, Yihe Town, Suide 36.1 7 Zhaojiapu Village, Mantangchuan Township, Suide 104.68425 RIFCIU-SWJTU 37 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

8 Wulidian Village, Zhangjiabian Township, Suide 348.01295 9 Yanjiacha Village, Xindian Township, Suide 131.08505 10 Shilipu Village, Zhangjiabian Township, Suide 3911.8351 11 Dingjiagou Village, Zhangjiabian Township, Suide 4545.6276 12 Mawan Village, Macha Township, Zizhou 41.95345 13 Liuwan Village, Macha Township, Zizhou 25.7444 14 Xujiawan Village, Macha Township, Zizhou 115.6219 15 Fengqu Village, Macha Township, Zizhou 160.715 16 Jiaochang Village, Macha Township, Zizhou 104.6803 17 Shuangmiaowan Village, Zhoujian Township, Zizhou 99.3253 18 Xunjiansi Village, Matigou Town, Zizhou 261.8103 19 Dongjiawan Village, Miaojiaping Town, Zizhou 122.29265 20 Wangzhuang Village, Miaojiaping Township, Zizhou 82.12085 21 Mawan, Qilingou Village, Weijialou Township, Hengshan 142.04905 22 Hewan, Qilingou Village, Weijialou Township, Hengshan 522.11965 23 Fengwan, Xiaoyan Village, Weijialou Township, Hengshan 620.30485 24 Ningzhouguan Village, Weijialou Township, Hengshan 63.0841 25 Shangwanta, Miaowan Village, Weijialou Township, Hengshan 673.1089 26 Gaoyapan, Miaowan Village, Weijialou Township, Hengshan 742.4238 Resettlement site along with the National Expressway No.307 of 27 139.18 Hequan Town, Dingbian Total 14383.0374 From the Resettlement Department

Table 4-2 Summary of Funds Spending on “Three Supplies and One Leveling” for the Resettlement Sites in the Rural Areas of Shanxi Province Amount District, County or City Remarks (Yuan) “three supplies and one leveling” of Huangzhang village, Zhaozhuang Fenyang 600000 Village and Chujiagou Village. “Three supplies and one leveling” cost for resettlement site for 23 Development Zone of households in Mingli Village is 500,000 yuan (21 times), for Hao 1320000 Jinzhong City Jungang’s House is 20,000 yuan (25 times) and leveling cost for Mingtian Corporation is 800,000 yuan. “Three supplies and one leveling” cost for eight villages is 36,633,000 Lishi 37308000 yuan (9 times) and that for Xiashuixi Primary School is 675,000 yuan (13 times) “Three supplies and one leveling” and dike construction cost for the new site of Longmenhui Village is 6 million yuan (8 times); “three supplies and one leveling” for the resettlement site of 7 villages is 11.09 million yuan (12 times), that for Longmenhui Village is 2 million yuan (27 Liulin 23769000 times), that for the resettlement site of Longmenhui Primary School is 991,000 yuan, that for the resettlement sit of Chugou Primary School is 1,508,000 yuan (19 times), that for 66 civilian houses is 2.1 million yuan (30 times), and that for demolition of civilian houses in the transform substation is 80,000 yuan (33 times). “Three supplies and one leveling” cost for demolition and resettlement of Qingxu 979000 civilian houses is 979,000 yuan “Three supplies and one leveling” cost for the resettlement site of Wenshui 1286000 Beixiaci Village is 700,000 yuan and that for Qiaotou Village is 586,000 yuan "Three supplies and one leveling” for the resettlement site of civilian Xiaodian 160980 houses in Xiaobeige Total 65422980

From the Resettlement Department

RIFCIU-SWJTU 38 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Table 4-3 Construction of the Concentrated Resettlement Site in Lishi District and Liulin County "Three supplies and one Resettled Affected areas Resettled residential compound leveling" compensation Resettled area households (10,000 yuan) Shang’an Compound 932.66 Xia’an Compound 1459.97 Qianzhaojiazhuang Compound 277.96 Lishi District Houzhaojiazhuang Compound 442.5 Chejiawan Compound 191.07 Hejiata Compound 422.98 Fengshan Compound 703.07 Subtotal 4430.21 530 1727 Chugou Resettlement Site 997.62 10628.05 74 Qinglong Resettlement Site 203.98 7165.31 71 Liangjiahui Resettlement Site 332.15 12948.71 160 No.1 Village Committee of 21.91 681.22 4 Liulin County Mucun Village No.2 Village Committee of 62.94 3659.39 36 Mucun Village No.3 Village Committee of 184.92 6838.6 48 Mucun Village Dujiawan 202.48 4769.58 42 Subtotal 2006 46690.86 435 Wenshui Beixiaci Village 70 35.52 52 County Total 6506.21

From the Resettlement Department

4.3 Typical survey and interview 4.3.1 The Ningxia Hui Autonomous Region 1) Mr. Bao Jincai from Yinchuan HQ of Taizhongyin Railway Co., Ltd 44. There are 8 railway stations for Taiyuan-Zhongwei-Yinchuan Railway in Ningxia. Except Ningdong Railway Station is under construction for certain reasons in design, construction of other railway stations have already completed. Land acquisition and house demolition have been generally finished. Quantity of temporarily acquired land is being calculated. 2) Ma Xin, Director of the Unified Land Acquisition Office, the Department of Land and Resources of Ningxia Hui Autonomous Region 45. Basic information on land acquisition and dismantlement for Taiyuan-Zhongwei-Yinchuan Railway: Land acquisition, dismantlement and resettlement of displaced persons have almost finished and various compensations have been paid already. Problems such as surplus land after land acquisition have been already solved properly. The new houses for the relocated households have also been generally built. There is only one centralized resettlement site, Zhongning County, in the Ningxia Region, where all households have moved in. The new compensation criterion for land acquisition and resettlement after 2010 is applicable to this Project. Production and living of the affected persons are less affected by land acquisition and dismantlement. They have been properly compensated and their living and production has RIFCIU-SWJTU 39 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank resumed. Up until now, 350,000,000 yuan of resettlement cost has been paid to the affected persons in Ningxia Hui Autonomous Region. 3) Li Xinning, Deputy Director of Land Reserve Center of Land and Resources Bureau of Yongning County in Yinchuan City 46. Only 3 townships are involved in the land acquisition and house demolition, i.e. Shengli Township, Yanghe Town and Wanghong Town. The leading group supporting Taizhongyin Railway construction with the deputy secretary of Haningdong County Committee as the leader and the county Land and Resources Bureau as the main executive agency of land acquisition and house demolition, has been established. 4) Ma Xuezhong, Chief of Wanghong Town in Yongning County 47. The basic information: The total product of society of Wanghong Town reached 802 million yuan in 2010. The proportion of primary industry, secondary industry and the tertiary industry was 24.4: 45.5: 30.1 and the general financial revenue was 26 million yuan. In 2010, the annual net per capital income of the farmers was 5,580 yuan. 48. Land acquisition and house demolition: 4 villages have been involved in the land acquisition for the railway and the passing territory is 17 km. 384.94 mu lands have been acquisitioned and 2 households been removed with the demolition area of 563.88m2. All compensation payments have been appropriated in time. 49. Methods of land acquisition and resettlement: as for land acquisition and resettlement, monetary resettlement should be done after land acquisition. The compensation payment would be directly paid to the affected people. For house demolition and resettlement, the compensation would be directly paid to the affected households. The government would allocate the house sites to the households for self-construction. 5) Zhang Quan, villager of Group 4 in Xihe Village of Wanghong Town in Yongning County 50. Male, 70 years old, Han nationality, junior high school education background, is engaged in agriculture and his wife, 64 years old, Han nationality, illiteracy, is a farmer, too. The family has 4.5 mu irrigable lands with half for vegetable and half for crops. The annual income is 3,000 yuan. The original residential house is of brick-wood structure and the house site covers 0.8 mu. In Taiyuan-Zhongwei-Yinchuan Railway Construction Project, all his farmlands have been requisitioned and compensated as per 12,000 yuan / mu and all his houses have been demolished and compensated as per 350 yuan / m2 with transition subsidy of about 1,200 yuan. At present, the new house has been built and the living conditions have been improved. The family has good health conditions. With television as the only electrical appliance, the living standard of this family is inferior. 6) Zhu Baohui, villager of Group 4 in Xihe Village of Wanghong Town in Yongning County (0951-8402279) 51. Male, 40 years old, Han nationality, primary school education background, is engaged in agriculture. He has 2 family members: his father and his mother. His parents, Han nationality, illiteracy, are in their seventies and rest at home. 2.5 mu irrigable lands have been requisitioned and compensated as per 12,000 yuan / mu. 7 mu farmlands are remained for planting vegetables and crops. The householder suffers from tuberculosis (for 17 years and the medical expense each year is RIFCIU-SWJTU 40 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank about 2,000 yuan). Therefore, he is singe up to now. The expense for asking other people to plough is more than 1,000 yuan each year. The annual agricultural income is about 5,000 yuan; all expenditures for agriculture, the push money of production team and water rates are 3,000 yuan per year. His parents have hypertension and the medical fees are afforded by his married sisters. With television in his family, the living standard of this family is inferior. It seems that the affect of land acquisition is not great. 7) Ye Weidong, Head of Yuding Township in Zhongning County of Zhongwei City. 52. Basic information: the township is 15 km away from Zhongning County with the total area of 560 km2, including 6 villages, 62 groups and total population of 15,330 (4,133 households). The area of farmlands is about 17,756 mu. In 2010, the rural per capital net income was 5,120 yuan. 53. Land acquisition and house demolition: 4 villages have been involved in the land acquisition. The 568.48 mu farmlands have been acquisitioned and 207 households have been removed with an area of 51,850.68m2. All expenses have been appropriated in time. 54. Methods of resettlement: as for land acquisition and resettlement, monetary resettlement, i.e. the compensation payment to be directly paid to the affected household, should be used after land acquisition. As for the farmers without land acquisition, their production would not be affected greatly and they don't have to find a job; for house demolition and resettlement, the compensation would be directly paid to the affected households. The government would allocate the house sites to the households for self-construction. There is a concentrated resettlement site and the three supplies and one leveling would be implemented by the government. Now the affected people have moved to their new house. 8) Guo Jinxian, Secretary of Yongxing Village, Yuding Township, Zhongning County, Zhongwei City (1338956052) 55. The village has totally 11 villager groups, 741 households and a population of 2,931 and the per capita income is 5,200 yuan/year. All the people are Han Chinese without ethnic minorities. 400 people are working outside. In Taiyuan-Zhongwei-Yinchuan Railway Construction Project, 150 mu farmlands and 169 mu temporary lands have been requisitioned. No land is adjusted in the village after land acquisition. The house sites of new rural resettlement site would be acquisitioned by the township for unified planning. As required by construction of new socialistic rural communities, cost for construction of the resettlement site shall be paid by the government.

RIFCIU-SWJTU 41 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Fig. 1 Resettled Residential Compound of Yongxing Village 9) He Lidi, villager of Group 7 in Yongxing Village, Yuding Township, Zhongning County, Zhongwei City (13629531735) 56. Male, 58 years old, Han nationality, primary school education background, is engaged in agriculture. He has four family members including his wife, younger son, daughter-in-law and the grandson. His wife, 56 years old, illiteracy, is a farmer and in poor health. The annual medical fee is about 3,000 yuan. His younger son, 28 years old, junior high school education background, is engaged in agriculture; his daughter-in-law, 26 years old, junior high school education background, is also a farmer; his grandson is 5 years old. His original brick-wood house is compensated based on 350 yuan/m2. 1,300 yuan transitional fee has also been paid. Based on the resettlement of the village, the 117m2 brick-concrete new house has been built and the total expense is about 90,000 yuan. 1.8 mu irrigable lands have been requisitioned and compensated as per 12,000 yuan / mu. 7 mu farmlands are remained and the annual agricultural income is about 10,000 yuan. The family also runs a small flour mill with the annual net income of 5,000 yuan. Meanwhile, part of their new house is used as rental investment with rent of 2,000 yuan each year. The family has a television, two motorcycles and a four-wheeler. All his families are in good health and their living standard is better than average in the village. 10) Song Xuebao, villager of Group 5 in Yongxing Village, Yuding Township, Zhongwei City (13649588464) 57. Male, 50 years old, Han nationality, junior high school education background, is engaged in agriculture. He has two family members including his wife and his son. His wife, 46 years old, Han nationality, illiteracy, engaged in agriculture; his 22-year-old son, is studying in Sichuan University and his tuition expenditure is 17,000 yuan per year. The original house is divided into two parts, including 110 m2 earth-wood structure, which would be compensated as per 280 yuan / m2, and shelter (70m2), which would be compensated as per 50 yuan / m2, and 1,300 yuan transitional fees. The 117m2 brick-concrete new house has been built with the expenditures of 60,000 yuan. Now the household financial incomes include 10,000 yuan from the annual farmland income and 5,000 yuan earned by the householder as the casual labor. The family has a television, a motorcycle and a tractor, etc. All his families are in good health and their living standard is moderate in the village. 4.3.2 Shaanxi province 1) Bai Haijun, Section Chief of Land and Resources Bureau of Yulin City Li Yongming, Director of Unified Land Acquisition Office, the Department of Land and Resources of Yulin City

RIFCIU-SWJTU 42 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 58. The Department of Land and Resources of Shaanxi Province has paid 1.1 billion yuan to Land and Resources Bureau of Yulin City as the compensation for land acquisition and house demolition of the Taiyuan-Zhongwei-Yinchuan Railway Project. And Yulin City has paid 1.05 billion yuan to each affected county. Up to date, land acquisition and demolition has almost completed with various costs being calculated now. And the resettlement is almost finished as well, except that displaced households for the two resettlement sites in Suide County. It is estimated that the new houses will be built within this year. 2) Wang Hu, Leader of the Labor Union, the Department of Land and Resources of Dingbian County of Yulin City 59. Land acquisition and house demolition in Dingbian County for Taiyuan-Zhongwei-Yinchuan Railway involves 8 townships and 36 villages. The leading group supporting Taizhongyin Railway construction with the County Magistrate Yang Wenhai as the leader and the county Land and Resources Bureau as the executive agency of land acquisition and house demolition, has been established. The compensate standard has been uniformly made by Yulin City (YZF [2006] Document 102). The procedure of compensation appropriation is: the compensation would be paid to Unified Land Acquisition Office of Department of Land and Resources of Shaanxi Province by Department of Finance of Shaanxi Province, then to Land and Resources Bureau of Yulin City, Land and Resources Bureau of Dingbian County, affected townships and to the affected village groups (land compensation fees) and affected households (house demolition compensation) directly by the township. 60. The methods of resettlement in the whole county: as for land acquisition and resettlement, monetary resettlement, i.e. the compensation payment to be directly paid to the affected household, should be used after land acquisition. For the farmers without complete land acquisition, most of compensate fees have been paid, while for the part of farmers with temporary land acquisitioned, the compensate fees have not been paid yet. For house demolition and resettlement, the compensation would be directly paid to the affected households. The resettlement department would allocate the house sites to the households for self-construction. There is only one centralized resettlement site has been completed. Most of villagers in the resettlement site have built their new houses and have moved into these new houses in 2011.

Fig. 2 New houses in the Resettlement Site of Dingbian County 3) Wei Junwen, Secretary of Weijialou Village, Weijialou Township, Hengshan County, Yulin City (0912-7878183) 61. There are more than 800 people and 200 households divided into 4 groups in the village. About 200 villagers are working outside and the sex ratio at birth is RIFCIU-SWJTU 43 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank balanced. There are 150 poverty stricken families in the village, of which about 10 households have access to the minimal assurance. The villagers are mainly relied on the farming to plant the corn, potato and soybean. The per capita farmland is only 0.3 mu. All the farmers know well about the documents of compensate standard. In Taiyuan-Zhongwei-Yinchuan Railway Construction Project, the local labors (including the female) are hired for well digging and road paving, which would increase the farmers’ income. The household incomes of villagers rely on farm production and working outside. The vibration produced by the railway construction would make a certain influence on the villagers’ houses and livings. The compensation for house demolition is insufficient to cover the cave houses with the same area as the original ones. 4) Wei Junqiang, villager of Group 4 in Weijialou Village, Weijialou Township, Hengshan County, Yulin City (0912-4954247) 62. Male, 48 years old, Han nationality, senior high school education background, is engaged in agriculture (casually works on the nearby expressway). He has four family members including his wife, his mother, second son and third son. His wife, 45 years old, junior high school education background, is a farmer; his mother is 74 years old and illiteracy; his second son, 22 years old, junior high school education background, is working outside; his third son, 19 years old, junior high school education background, is engaged in agriculture. 4 mu farmlands are acquisitioned, including 2 mu terrace (10,000 yuan / mu is compensated) and 2 mu forest lands (5,000 yuan / mu is compensated). 8 mu lands are left and 29,000 yuan has been received as the land acquisition compensation. Additionally, 1,000 yuan has not been paid. Potato is mainly planted. His original house was the cave house with a building area of 140m2 and compensated with 32,000 yuan in total. No house transitional fee is paid. The total expense of the newly-built house is about 40,000 yuan and the floor space is 60 square meters. Due to demolition for the railway, more than 70 fruit trees need to be cut off, of which each bigger one would be compensated with 200 yuan and each smaller one would be compensated with 30 yuan. In total, about 10,000 yuan would be compensated. Sheepfold, pigsty, donkey enclosure and toilet would be dismantled and 100 yuan would be compensated for each. The annual income from the farmland is about 9,000 yuan and the expenditure of agricultural products such as chemical fertilizer for three years is about 3000 yuan. He and his wife work outside and would obtain about 10,000 yuan income each year. The family only has the television. The annual medical fee of the whole family is about 3,000 yuan. Their living standard is moderate in the village. It seems that the affect of land acquisition is not great.

Figure 3 Resettlement Houses of Qilingou Village 5) Zhao Defu, Deputy Chief of Land and Resources Bureau of Suide County of RIFCIU-SWJTU 44 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Yulin City 63. Land acquisition and house demolition in Suide County for Taiyuan-Zhongwei-Yinchuan Railway involves 6 townships and 35 villages. The leading group supporting Taizhongyin Railway construction with the County Magistrate Zhao Yong as the leader and the county Land and Resources Bureau as the executive agency of land acquisition and house demolition, has been established. 64. Resettlement of land acquisition and house demolition: the monetary resettlement is applied after land acquisition, i.e. the compensation payment to be directly paid to the affected household. Except two villages affected by land acquisition for Suide Railway Station, there will be no farmers without any land, so their production will not be affected greatly and they don’t have to find a job. As for Dingjiagou Village and Shilipu Village which are affected by land acquisition of construction railway station, special resettlement measures will be taken by Shaanxi Government. Almost 3000 people in these two villages will become urban residents, with 27,800 yuan of resettlement compensation for each person and all of them will be offered with the minimum urban living standard insurance of Suide County, approximately 1800 yuan per capita. In addition, they will be offered with the social pension insurance. 65. The compensation has been directly paid to the affected households after demolition. The rebuilt houses are resettled in centralized way and the three supplies and one leveling would be implemented by the government. There are 10 centralized resettlement sites in the county, all of which have been built up to now. New houses for eight resettlement sites have been built already and homestead for Shilipu Resettlement Site is allocated. The displaced households will build new houses soon. And Dingjiagou Resettlement Site will allocate homestead and build new houses soon. See Table 4-4 for the construction of the resettlement sites of Suide County. Table 4-4 Summary of the Resettlement Sites in Suide County Appropriated “three Resettled households Name of resettlement site supplies and Resettling progress one leveling” funds Lougou Village, Yihe Town, Suide 289.0745 27 Completed and moved in Xizhigou Village, Yihe Town, Suide 62.8 33 Completed and moved in Hejiajian Village, Yihe Town, Suide 514 77 Completed and moved in Huobaiwan Village, Yihe Town, Suide 127.156 25 Completed and moved in Yangjiaqu Village, Yihe Town, Suide 33.75 26 Completed and moved in Zhaojiapu Village, Mantangchuan Township, Suide 97.4439 17 Partial resettled Wulidian Village, Zhangjiabian Township, Suide 324 28 Completed and moved in Yanjiacha Village, Xindian Township, Suide 122 23 Completed and moved in Shilipu Village, Zhangjiabian Township, Suide 3651.9989 310 To built new houses soon Dingjiagou Village, Zhangjiabian Township, Suide 4244.4046 300 To built new houses soon

From the Resettlement Department The resettlement sit for Lougou Village, Yihe Town 66. In the Lougou Village Resettlement Site, 27 displaced households have moved into new houses. The resettlement sit is equipped with tap water, toilet and other auxiliary facilities, which is a great improvement of the living conditions of rural RIFCIU-SWJTU 45 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank residents, so they are very satisfied with the resettlement.

Figure 4 Lougou Village Resttlement Site Shilipu Resttlement Site 67. There are more than 1700 people from more than 500 households in Shilipu Village. 1200 people from 300 households will be displaced for the construction of Taiyuan-Zhongwei-Yinchuan Railway and 300 mu of land will be acquired. Up until today, the “three supplies and one leveling” work for Shilipu Resettlement Site has been finished and the homestead has been allocated to each rural citizen in accordance with the demolished area. In this April, when the weather is warm, construction of new houses will begin. With regard to resettlement, in addition to a compensation for demolition and relocation, a resettlement subsidiary amount to 27,800 yuan per capita is offered. In addition, all the rural residents in Shilipu Village will become urban residents, with the minimum urban living standard insurance, that is 1800 yuan per capita per year. At the same time, they can continue to buy the social security insurance for rural residents. If they pay 200 yuan of premium every year, they can receive 200 yuan per month after 60 years old.

Fig. 5 Shilipu Resettlement Site Fig.6 Dingjiagou Resettlement Site

The concentrated resettlement site for Yanjiacha Village 68. This resettlement site will resettle 23 households. Upon completion of new houses, all the households have been moved in. The living conditions for rural residents have improved greatly, so they are very satisfied with the resettlement.

RIFCIU-SWJTU 46 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Fig. 7 The resettlement site for Yanjiacha Village Dingjiagou Concentrated Resettlement Site 69. More than 300 households will be resettled in this resettlement site. The “three supplies and one leveling” has been finished already. Upon election of village cadres, the homestead will be allocated to each household. The resettled housed will be built by the rural citizen in accordance with the unified planning. It is estimated that, the construction will complete within this year. See Table 6 for the details. Wulidian Concentrated Resettlement Site 70. The concentrated resettlement site for Wulidian Village will resettle 28 households. This village is demolished in 2008 and construction of the new resettlement site begins in 2009. In 2010, the displaced persons moved into the new houses. But there is power supply problem, because the rural power network transformation is being carried out in this resettlement site. Upon completion of the transformation, power rate per kilowatt hour will reduce from 70 cents to 40 cents. Therefore, power supply of this resettlement site is to be improved.

Fig. 8 New Houses in the Wulidian Concentrated Resettlement Site 6) An Guangzheng, Secretary of Sanshizhai Village, Sishilipu Town, Suide County, Yulin City (0912-5851658) 71. The village has 12 groups, with 2,259 people from 568 households. Per capita income of last year was 2,100 yuan. There are 600 villagers working outside, 2 households enjoying the five guarantees, 30 extremely poor households and more than 30 households enjoying the minimal assurance. The collective economy doesn’t exist in the village and the per capita farmland is 0.2 mu. 5 households are relocated and more than 30 households are subject to land acquisition. The compensation for temporary land acquisition should be paid every three years and on site. All the villagers know well about the compensation standard for land acquisition and house demolition. The distinctive agriculture of the village is red date industry. There are 4,000 mu jujube trees and per capita is 1.8 mu. The RIFCIU-SWJTU 47 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank production value of the red date can reach 1.8 million yuan every year and the dates mainly sold to the nearby Hui autonomous region. There are 17 households raising 700 pigs and fifty or sixty vegetable growers planting tomato and cabbage, which promotes the economy of the village. 7) Ma Shengguo, villager of Group 12, Sanshizhai Village, Sishilipu Town, Suide County, Yulin City (0912-5850565) 72. Ma Shengguo, 46 years old, Han nationality, illiteracy, is engaged in agriculture. He has four family members including his wife, his eldest son, second son and his daughter. His wife, 46 years old, junior high school education background, is a farmer. His eldest son, 22 years old, junior high school education background, is working outside for shout term (about 7 months working outside in three years). His 20-year-old second son is studying in high school. His 24-year-old daughter is in her first-year post-graduate study and her expenditure is 10,000 yuan per year. His original houses include 5 and a half cave houses with a building area of 170m2 (compensation standard of 480 yuan/m2). The total compensation for the house demolition is about 90,000 yuan (the transitional fee is 150 yuan/ month and lasts for three months). The total expense of the newly-built house is about 90,000 yuan, including 5 houses, and the floor space is 180 square meters. The family has 4.5 mu jujubes with the annual income of 2,000 yuan and 1.5 mu irrigable lands planting beans and peanuts with the annual income of 1,000 yuan. The expenditure of agricultural products such as chemical fertilizer for three years is about 2,000 yuan. The annual income of his eldest son from working outside is about 5,000 yuan. The householder ran a stone carving plant previously with an annual income of 10,000 yuan (however, due to house demolition for the railway, the stone carving cannot come into operation and has not been compensated so far). The family has a television and a motorcycle. The householder suffers from stomach illness and the treatment cost was 2,000 yuan last year. Their living standard is moderate in the village. 8) Kong Lingzhou, Director of Land and Resources Bureau of Wubu County, Yulin City 73. Land acquisition and house demolition in Suide County for Taiyuan-Zhongwei-Yinchuan Railway involves only one township. The leading group supporting Taizhongyin Railway construction with the Deputy County Mayor Hao Wenhui as the leader and the county Land and Resources Bureau as the executive agency of land acquisition and house demolition, has been established. 74. The methods of land acquisition and resettlement: the monetary resettlement, i.e. the compensation fees to be directly paid to the affected household, is used after land acquisition. For house demolition and resettlement, the compensation would be directly paid to the affected households and both centralized and decentralized resettlement would be used in combination. The government would allocate the house sites to the part of households for self-construction. There is a concentrated resettlement site located in Zhangjiayan Village and the three supplies and one leveling would be implemented by the government. The resettlement site has been built but the relocated households haven’t built their new houses. The involved city house demolition would adopt the market evaluation and monetary resettlement. 9) Zhang Shangshou, Secretary of Zhangjiayan Village, Songchuan Town, Wubu County (13992229553)

RIFCIU-SWJTU 48 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 75. The village has 5 groups, with 1,014 people from 300 households. Per capita income of last year was 1,000 yuan. More than 70 households are relocated including 5 households enjoying the five guarantees and 10 extremely poor households. The collective economy doesn’t exist in the village and the per capita farmland is 1 mu (hillside fields). The demolition compensate has been paid and directly appropriated to the households by the County. Compensation for most of temporary lands has been paid and all the villagers know well about the compensate standard for land acquisition and house demolition. The distinctive agriculture of the village is red date industry. There are nearly 2,000 mu jujube trees; however the income is low. The red dates are mainly sold across the country. Few farmers raise pigs or sheep and they don’t have the greenhouses. The food crops mainly include soybean, corn, sorghum and foxtail millet. 10) Zhang Runlin, villager of Group 3 of Zhangjiayan Village, Songchuan Town, Wubu County, his wife accepted the interview instead (15929024131) 76. Male, 41 years old, junior high school education background, has four family members, including his wife, 39 years old and junior high school education background. His 13-year-old son is in the sixth grade in the village primary school; his eldest daughter is studying in a technical school in Xi’an with tuition of 5,000 yuan per year; his youngest daughter, 15 years old, is in Grade Two of Wubu No.2 middle school. His 3 large cave houses and 5 small cave houses have been removed due to Taizhongyin Railway construction and compensated with more than 100,000 yuan in total. The householder is not in home, so the compensation hasn’t been paid. The householder is working in the village with monthly income of 500 yuan and annual income of 10,000 yuan. Foxtail millet and potato are planted in his farmland to feed his family. Their living standard is moderate in the village. 11) Zhang Fujia, villager of Group 5, Zhangjiayan Village, Songchuan Town, Wubu County (13892296452) 77. Male, 38 years old, Han nationality, junior high school education background, is engaged in agriculture. He has three family members including his wife, his son and his daughter. His wife, 33 years old, junior high school education background, is engaged in agriculture; his 15-year-old son is studying in his junior high school; his 12-year-old daughter is studying in her primary school. The family has 2 cave houses (haven’t been taken down yet) with a building area of 80m2 and compensated as per 500 yuan / m2. Due to demolition for the railway, 25 jujube trees need to be cut off in total, including 7 bigger trees (compensated as per 260 yuan for each), 5 middle trees (compensated as per 100 yuan for each), and 13 smaller trees (compensated as per 30 yuan for each). 2 mu dry lands have not been acquisitioned with the annual income of 6,000 yuan and the annual income from the jujube trees is 2,400 yuan. The family only has the television. All his families are in good health and their living standard is worse than average in the village. 4.3.3 Shanxi Province 1) Xue Junming, General Manager of Shanxi Real Estate Company (0351-7882235): 78. 1.5 billion yuan has been paid in Shanxi Province as the compensation for land acquisition and house demolition of the Taiyuan-Zhongwei-Yinchuan Railway Project, which far exceeds the original estimated cost (0.54 billion yuan). On the whole, the uniform compensation policies and standards are implemented for

RIFCIU-SWJTU 49 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank land acquisition and house demolition in the whole province. In local areas, such as the suburb of Taiyuan City, Mucun Town of Liulin County of Lvliang City and local area of urban planning area of Lishi District, the compensation standard is increased with the highest compensation of 60,000 yuan/ mu. 79. Progress of land acquisition: 14,578 mu land (including land for resettlement) is acquisitioned in the whole province with capital in place of 650 million yuan; 1,523 mu forest lands are acquisitioned with compensation of 739.3 million yuan paid. Now compensation only for 10 mu lands in Xiaodian District of Taiyuan City has not been paid, while the rest has been appropriated. Meanwhile, Shanxi Province issues the social security policy for land-lost farmers. The compensation for every acquisitioned land would be paid as per the five times of annual production value of average land acquisition of each county by the company occupying the lands, based on the current compensation standard, which would be transferred into the county financial special account of social security funds of farmers loosing their lands for social security payment. The information about the temporary land is unclear. 80. Demolition progress: compensation of 736 million yuan has been appropriated for the house demolition in the whole province. 316,000m2 houses are removed and compensated with 209 million yuan and the average expense of 660 yuan/mu (including enclosure, etc.). 167 enterprises and companies are removed and compensated with 122 million yuan. The compensation for house demolition is paid not only as per the original standards, but also the compensation for decorations (old house: compensation for demolition = demolition area × 2 × 1,506 yuan/m2; new house: compensation for demolition = demolition area × 3 × 150 yuan/m2), which makes the compensation standard increase 300-400 yuan/ m2. In addition, the demolition compensation standard for new house included in the built-up areas increases 40% and for old house increases 20%; the demolition compensation standard for new house included in the planning areas increases 20% and for old house increases 10%. The compensation standards of counties can be adjusted based on the actual conditions. 81. 5 schools have been demolished including one in Wenshui County, one in Lishi District and three in Liulin. All compensation is appropriated in place and the schools are built up. A part of enterprises are demolished for the railway, a half of which are bankrupted enterprises. As for all demolished enterprises, the compensation is paid as per the evaluated prices, including demolition compensation, relocated fees and the worker’s salaries for half a year, the enterprises in production should be also paid for the operation loss. 82. The centralized resettlement sites cover an area of 600-700 mu (7 in Lishi and 6 in Liulin County). The construction cost for the three supplies and one leveling of each house resettlement site is about 77.18 million yuan, of which 57.18 million yuan has been appropriated and the rest 30% has not been paid. Except some areas such as Xiaodian District, Jiaocheng County and Yuci District, the other areas have the cost for the “three supplies and one leveling” been completely paid. Meanwhile, 44.10 million yuan as the removal cost for ditches and roads has been paid, of which those for Fenyang City, Lishi District and Liulin County have not been appropriated in place. It should be ensured that more than 40% of compensation for resettlement has been appropriated. 83. In Lishi District, 400,000 m2 houses have been demolished in total, accounting for 50% of house demolition in Shanxi Province for Taizhongyin Railway construction. Due to higher urbanization degree, the compensation standard for

RIFCIU-SWJTU 50 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank this city is more than 1,000 yuan / m2. The original bungalows of some relocated households have been demolished with compensation standard of 750 yuan / m2 and the relocated households should be resettled to the buildings (1,250 yuan / m2), of which the difference should be made up by the estate company and local government as per 250 yuan / m2. 84. The special problems appeared in the process of land acquisition and house demolition in Shanxi Province are solved in the regular meeting. The problems are reported to the Shanxi Real Estate Company by the County and verified by the Construction Company, the government and the real estate company on site. Then the five interested parties such as County Government, Development and Reform Commission, real estate company, Land and Resources Bureau, etc., discuss to find the solutions in meeting and make the minutes of meeting. The relevant leaders of the county, township and village participate jointly to solve the problems based on the minutes of meeting. 85. The procedure of compensation appropriation: the compensation items specified in the uniform compensation and resettlement documents of the Province should be compensated as per the document specification. As for actual condition not specified in the document, it should be paid according to the minutes of meeting discussed by each party. The appropriation procedure of land acquisition compensation: the required quantity of land acquisition and house demolition should be reported by the county firstly and signed by Taizhongyin Railway Co., Ltd., Construction Company, Design Company, Supervisor, Real Estate Company and Development and Reform Commission. Then the Real Estate Company would appropriate the capital. The appropriation procedure of demolition compensation: Real Estate Company - County Finance Bureau or Coordination Group - Village - Households; the appropriation procedure of land acquisition compensation: Real Estate Company - Province Land and Resources Bureau - County Land and Resources Bureau - Village - Households; the appropriation procedure of forestry compensation: Real Estate Company - Province Forestry Bureau - County Forestry Bureau - Village - Households. 2) Fu Riqin, Director of Service Center of Land for Construction in Shanxi Province (13503513023) 86. Director Fu briefly described land acquisition and fund appropriation for Taiyuan-Zhongwei-Yinchuan Railway. Because of some E&M works of the Taiyuan-Zhongwei-Yinchuan Railway Project which are continually constructed in Shanxi Province, small-scale land acquisition occurs occasionally. Up until now, some land acquisition funds have not been appropriated. The Department of Land and Resources of Shanxi Province has paid social security funds to the social security department at a unit price of 5000 yuan/mu for the acquired land for the Taiyuan-Zhongwei-Yinchuan Railway Project as required by the social security policies issued in 2009. But they don’t know which districts have enforced social security policies. 87. Implementation of land acquisition compensation in Shanxi Province for Taiyuan-Zhongwei-Yinchuan Railway: on the basis of uniform compensation standard of the whole province, appropriately improve the compensation standard (not exceeding 30 times of annual production value) with the highest reaching 60,000 yuan / mu according to the special situations of different areas (Liulin County, Lishi District and Jinzhong City). 88. The measures and policies of land acquisition and resettlement in Shanxi Province: offer the farmers with their land acquisitioned by the Taizhongyin RIFCIU-SWJTU 51 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Railway Project with the social security according to the relevant regulations in documents of the General Office of Shanxi Provincial Government (JFBF [2009] No. 72). Refer to Regulations No. 182 issued by Shanxi Provincial Government for the land acquisition compensation. 80% of land compensation must be paid to the farmers. In fact, however, the village collective reserves 20% of total resettlement compensation. The land index of centralized resettlement sites: in addition to the roads beyond the boundary, the land for house site of the major project should be converted to the construction land as per the standard of agricultural land diversion. The compensation for house sites acquisition is paid as per 136,000 yuan / mu (standard: 17 times of land production value) to the relocated party (resettlement allowance belongs to the village group) and afforded by the Land and Resources Bureau. The village group allocates the half with resettlement pavement as per 0.3 mu / household; the three supplies and one leveling are resolved by additional funds. 89. The appropriation procedure of land compensation: Real Estate Company - Service Center - County - village. In case of any inconsistent compensation standard, it should be discussed and verified by the parties to achieve the minutes of meeting. 90. Solution of surplus land problems (2% policy): when the railway construction is completed, the surplus land would be acquisitioned as per the permanent land acquisition standard after the local county, township and village obtain the evidence and sign. 91. Reclamation of temporary land is supervised by the Land and Resources Bureau. However, the Construction Company doesn't declare (according to Document No. 101). As a result, many temporary lands can’t be supervised due to the inadequate procedure. According to Document No. 101, the Construction Company should pay for the reclamation security funds as per 3,000 yuan / mu. 92. The appropriation of land acquisition in Shanxi Province: land compensation of 500 million yuan has been appropriated in the whole province and 90% has been paid within the boundary line. The compensation for land acquisition and young crops has been all paid to the relocated households. The farmland reclamation cost and land cost of Land and Resources Administration of each county have not been appropriated. Due to disputed design, only a part of compensation for the borrow area is paid. 3) Pei Lanrong, Director of Land and Resources Bureau in Xiaodian District, Taiyuan City (13703516755) Huo Xiangjin, Vice Director (13934538231) 93. Progress of land acquisition: the Taizhongyin Railway Project covers three townships in Xiaodian District: Liujiabao Township, Beige Town and Xiwenzhuang Township, and affects 13 villages (3 in the Liujiabao Township: Donglijie Village, Shigou Village and Wangwu Village; 8 in Beige Town: Xin Village, Tongguo Village, Xiaobeige Village, Dadaijiabao Village, Gao Village, Houjiazhai Village, Liangjiazhuang and Sanxian Village; 1 in Xiwenzhuang Township: Xijia Village). 86.9681 hectares collective lands and 0.8086 hectares state-owned lands (part of farms) are acquisitioned. The railway station is located in Xiaobeige Village of Beige Town. At present, land acquisition compensation has been appropriated to the village by the Land and Resources Bureau of Xiaodian District. The temporary land was used in September, 2009. Now the total area is 38.91 mu, which affects 3 villages: 23.41 mu in Xin Village with compensation of 233,517 yuan; 4.73 mu in Gao Village with compensation of RIFCIU-SWJTU 52 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 35,609 yuan; 4.77 mu in Xiaobeige Village with compensation of 44,917 yuan. 94. The compensation policies and standards for land acquisition: according to Document No. 22 of Shanxi Province [JGTJYZ (2007)], the compensation for land acquisition should be appropriated as per the standard of 26,000 yuan /mu (vegetable field: including land cost, resettlement cost and young crop cost). 38.91 mu land is occupied temporarily and the reclamation security fund is 300 yuan / mu. 95. Social security of land-lost farmers: offer all land-acquisitioned households with social security according to Document No. 72 (JZBF [2009]). 4) Wang Jianjun, Director of Development and Reform Bureau of Xiaodian District, Taiyuan City (13903446586) 96. The process of demolition: the Development and Reform Bureau of Xiaodian District is responsible for the house demolition and resettlement affected by the Taiyuan-Zhongwei-Yinchuan Railway Construction. The railway across the Xiaodian District is 13.6 km. The house demolition involves 11 villages of 3 townships and 21 households and 24 enterprises are demolished. 97. In 2008, the final demolition scheme of Taiyuan-Zhongwei-Yinchuan Railway in this district was determined and the paid-in capital was 12.40 million yuan. In the same year, the demolition was started from Liujiabao Township. 13 enterprises had been demolished within a month. Beige Town was demolished in April, 2009. At present, Houjiazhai Village, Liangjiazhuang village and Xijiazhuang Village within the boundary line of Beige Town have been demolished with compensation in place. 9 households beyond the boundary line are affected and should be demolished in total. The reason is that the 39 mu house sites required by the resettlement (no land in the village can be adjusted; only the land within the influence range of Taizhongyin Railway can be used) have not bee replied. All the compensation for demolition have been in place. The transitional cost and relocated cost are appropriated to the town. However, some relocated households haven't moved. As a result, 121,000 yuan moving expense has not been paid and another 400,000 yuan compensation for demolition has not been paid, either, involving in 3 villages. The reason is that the southwest ring railway of Taiyuan City is parallel to this railway without the clear construction unit. 98. 24 enterprises are demolished in Xiaodian District and compensated in monetary way. Most of them have been rebuilt; some are rebuilt in different place and the rest is reconstructed in the original demolition place. Additionally, Taizhongyin Railway Co., Ltd. pays for the suspend production from 3,000 yuan to 20,000 yuan based on different types of companies. The appropriation procedure of demolition compensation: Shanxi Real Estate Company - Development and Reform Bureau of Xiaodian District - enterprise (directly to the company) or Shanxi Real Estate Company - Development and Reform Bureau of Xiaodian District - village - household. 99. The centralized resettlement site of Xiaodian District is located in Beige Town and Development and Reform Bureau of Xiaodian District is responsible for the three supplies and one leveling. 100. Problems appeared in house demolition: 1) compensation price for houses determined by the third-party evaluator is much lower, which brings difficulty to the demolition. The house compensation of Xiaodian District is determined as per the upper limit of compensation for land acquisition and house demolition specified in Document No. 147 of Shanxi Province and increased by 30% on the RIFCIU-SWJTU 53 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank basis. The average actual house compensation is 1,300 yuan / m2 adding the in-house decoration cost (demolition area × 3 × 150 yuan / m2). 5) Wei Zhigang, Chief of Beige Town, Xiaodian District, Taiyuan City (13753153168) 101. Progress of land acquisition: Taiyuan-Zhongwei-Yinchuan Railway in Beige Town is 14 km long and involves 8 administrative villages. 802 mu lands are acquisitioned in total (three household resettlement sites are still under coordination). The land acquisition began in April, 2009. Due to bridges altered to roads in this area, the construction scheme was determined in 2009. 102. Progress of demolition: demolition for Taiyuan-Zhongwei-Yinchuan Railway involves Xiaobeige Village, Houjiazhai Village, Liangjiazhuang Village, Tongbian Village and Sanxian Village. More than 21 households (peasant households) are demolished. 2 enterprises, 2 taverns, 1 restaurant, 1 gas station, 2 pig farms, 10 temporary buildings, 9 individual houses and 2 house sites are demolished. 103. Compensation standard and resettlement for land acquisition and house demolition: on the basis of market evaluation, the compensation standard is determined through the discussion between the village official and affected households. If the negotiated price is higher than the market evaluation price, the difference should be made up by the district and township governments. The way to determine the compensation standard of shops and enterprises is the same. All the relocated households are centralized in Xiaobeige Village and the resettlement site covers an area of 39.4 mu (including enterprises in planning) and the expenses for three supplies and one leveling are undertaken by Taizhongyin Railway Co., Ltd. However, no expense has been appropriated yet. At present the relocated households are in the transition stage; neither the paid households haven't begun to build their new houses, nor haven’t the transitional cost and moving cost been appropriated by the superior. 104. Compensation standards for land acquisition: 26,000 yuan / mu (irrigable land including young crop cost); 38,000 yuan / mu (forest land). The appropriation procedure of land compensation: district - township - village. 20% land compensation is reserved in the village and the rest is appropriated to the affected households based on the acquisitioned area. The social security policies have been already issued but not implemented yet. 105. The residual problems: 1) the lands for the resettlement sites haven't been solved up to now and the transitional conditions for some relocated households are bad, resulting in poor life quality of the relocated households, which makes them unsatisfied. 6) Cui Jianye, Deputy Director of Development and Reform Bureau in Lishi District, Lvliang City (13503580862) 106. Taiyuan-Zhongwei-Yinchuan Railway goes through 6 towns in the Lishi District, namely, Tianjiahui, Xishuba, Chengbei, Fengshan and Jiaokou, and 28 administrative villages, with a mileage of 56.6 km. There are 1069 demolished sites with 1727 households and 158196.47 m2 of houses in the whole district. The demolition work has been completed now. The local government will be responsible for demolition and resettlement in accordance with the demolished areas. Up until today, all the resettlement site except Wucun Resettlement Site has been completed and most displaced households have moved into the new houses. RIFCIU-SWJTU 54 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 107. The Wucun Resettlement Site has not been built yet, with nearly 200 unsettled households. The main reasons include: 1) the resettlement site in not in Wucun Village, some rural residents do not want to settle at another place; 2) lacking of village head and CPC secretary in the village due to reelection of village cadres, so allocation of resettlement land is delayed. Director Cui said, we had been actively coordinating the construction of this resettlement site and construction of this resettlement site would complete within 2012. Rural citizen who do not want to be settled concentrated may resettle at their own discretion. 108. The appropriation of demolition compensation: based on the current standard, the funds appropriated by the provincial real estate company should be all in place, about 200 million yuan, including more than 30 million yuan for the three supplies and one leveling. Taking the township as the main body, all compensation for demolition should be paid to the households via the township (coordination group) and the district government hasn’t hold back the money. All compensation for demolition is appropriated in advance payment and hasn’t been settled at present. The balance after settlement would be used for the resettlement of common people. 109. Compensation standard for demolition: Lishi District is mainly the built-up area and compensated as per the highest standard specified in Document No. 147 issued by the provincial government. The house compensation is increased by 20% to 40% (built-up area) and 15% to 30% (planning area) based on the current standard. Additionally, the provincial real estate company pays for the internal decorations and appropriates the compensation to the district government as per the building area standard of 130 yuan / m2 and 150 yuan / m2. The district government carries out the provincial compensation standard (document) in details with the highest standard not exceeding the provincial compensation standard. The compensation standards are: 840 yuan/m2 for buildings, 560 yuan/m2 for bungalows, 420 yuan/m2 for cave houses in built-up areas (excluding decoration subsidy); 820 yuan/m2 for buildings, 560 yuan/m2 for bungalows, 420 yuan/m2 for cave houses in planning areas; 400 yuan/m2 for bungalows, 260-360 yuan/m2 for cave houses in rural areas. According to these above standards, no decoration subsidy is paid to bungalows in rural areas with or without decoration. 110. Enterprises and public institutions involved in demolition: Lvliang Meat Processing Plant (state-owned), Hejiatang Coal Company, Xiashuixi Primary school and more than 70 small businesses. Meat Processing Plant has been demolished and would be bankrupted and restructured after monetary resettlement; Hejiatang Coal Company has been demolished and resettled in money with the part of company affected; the primary school has been moved and now is being rebuilding. The provincial government has paid the transitional fees and the school rents houses outside without any influence on the school work. 70 individual workshops have been all demolished and relocated as a whole after being evaluated by the provincial government. 111. Problems in house demolition and resettlement: the relocated rural inhabitants are unwoulding to change their way of life and hope to build bungalows for resettlement. However, due to strained land for resettlement, the resettlement department adopts to construct the buildings, which is inconsistent with the requirements of affected households.

RIFCIU-SWJTU 55 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Tiean Residential Compound of Shang’an Village 112. More than 300 households have been resettled in the Shang’an Village Resettlement Site. Each household has a two-storey house. There are fitness facilities within the compound. And the resettled households may engage in non-staple food business or rent their courtyard to others to do some business. In addition there are unified constructed building provided to those displaced households who do not built new houses, especially for some senior citizens. This compound is not only of large scale but close to the city area. And there is a great appreciation potential for those houses, so the displaced households are very satisfied with the resettlement.

Figure 9 The Resettled Residential Compound of Shang’an Village The concentrated resettled residential compound of Xia’an Village 113. There will be 8 residential buildings in the concentrated resettlement compound of Xia’an VillageThe first and second floor will be used for commercial RIFCIU-SWJTU 56 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank operations, the third to seventh floor will be residential apartments and the negative floor will be used as the underground store room. The total construction area (m2) will reach 46259 m2. Upon delivery of apartments in this compound, the rural residents will live as urban residents with a great improvement in their living conditions. At the same time, the resettled apartments are merchantable apartments which are close to the development zone and railway station. The prices for these apartments will increase as the development of this city, and assets of rural residents will appreciate accordingly. Most residents have more than 2 real estates, so they can either sell or rent one of them to improve their living standard. These affected rural residents are picturing their future now. Several years later, their living conditions might exceed the urban residents. What’s more, rural citizen can engage in commercial business in the ground floor and they do not have to worry about jobs. Therefore, this demolition and resettlement plan is supported by the rural residents.

Fig. 9 Xia’an Village Resettlement Residential Compound

7) Zhang Jianmin, Vice Director of Land and Resources Bureau of Lishi District, Lvliang City (Cell phone: 13935834907) 114. Land expropriation compensation shall be carried out in accordance with Document No. 101 issued by the provincial government. According to No. 508 Meeting Minutes of the province, the standard for land expropriation compensation of certain land has been increased up to 60,000 yuan/mu. After the compensation fee has been allocated to the villages, 80% of the fee (exclusive of compensation for young crops and additives) will be allocated to the affected households and 20% will be managed by the village (group) committee for public welfare. 115. Appropriation of land requisition funds: the Shanxi provincial government shall grant 64 million yuan of land expropriation compensation, among which 61 million has been fully funded. The balance fee for land requisition compensation has not been funded yet. Although all funded fee has been allocated, due to the gap of 3 million unfunded, allocation of each village has not been finished for the moment. Totally 570 mu of land has been occupied by the 11 centralized settlements of the entire district, which is included in the scope of land requisition of Taiyuan – Zhongwei – Yinchuan Railway Project, but with no compensation.(Compensation of additives has been paid as per Document No. 101.) 116. The Lishi District government has not understood the social security policy for the peasant households whose land has been acquired of Shanxi Province and the procedures for approval of land have not been started yet.

RIFCIU-SWJTU 57 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 8) Mu Guisheng, Director of Development and Reform Bureau of Liulin County, Lvliang City (Cell phone: 13803488623) Chen Haibing, Clerk of Development and Reform Bureau of Liulin County (Cell phone: 15834386001) 117. Progress of land acquisition: The section of Taiyuan – Zhongwei – Yinchuan Railway passing through the territory of Liulin County is 30 km long, among which there is 18km of tunnel, 9-10km of bridge and about 2km of subgrade, of which 1km belongs to land reclamation construction. Totally over 1,100 mu land has been expropriated in Liulin area and the land requisition compensation has been fully allocated. After allocated to villages, 80% of the compensation is paid to the affected households while 20% is left for collective use. 118. Progress of removing: area of removing involved in Liulin County is 116,000m2. There are 965 households, 3 primary schools, 1 temple – Dajue Temple (municipal officially protected historic site) and over 20 enterprises, including a stone processing plant and a lime (CaO) plant, affected by removing activities. Among which, 18 small enterprises are basically put down due to not meeting environmental requirements. As a result, such enterprises will be treated as a whole and provided with monetary compensation, without any resettlement arrangement. Other legal enterprises will be compensated according to assessment of a third party (4-5, such as fish farm, green crab farm and brick plant) by monetary resettlement. The temple will be removed as a whole and rebuilt at the new location as per the original appearance. The total cost will be around 10 million yuan. At present, the temple has been rebuilt and will undergo consecration in March – April of the next year. Of the three primary schools, one school has been relocated and new term has begun (the Jundu Primary School); one school has not been completely removed and teachers and students need to rent other places for the school teaching. As the village is small and the school is located adjacent to the county railway station, the reconstruction shall be in concordance with the surroundings of the railway station. As a result, rebuilding of the school has not started for the moment. For the third primary school, as only part of the land is acquired by the Project and students are still having their classes at the original school, the resettlement method has not been decided yet: whether to demolish the residential building surrounding the school to make up the lost area of the school. 119. Progress of removing and resettling: there are 9 villages and 965 villager households are involved in removing for the Project. At present, 6 villages have been resettled. All resettlement sites have been completed and most of the relocated households have moved in. 120. Standard for relocation compensation: compensation for removing of houses of Liulin County shall be still as per the standard specified in Document No. 147 issued by Shanxi provincial department, i.e. 700 yuan/m2 for semi-brick buildings, 360 yuan/m2 for brick cave dwellings and 400 yuan/m2 for semi-brick bungalows. If the relocated household has interior decoration, the decoration compensation will be paid as per 50-150 yuan/m2.Compensation for relocation of affected schools shall also follow the aforementioned standard. Totally 500,000 yuan transition compensation is provided for the three primary schools. The difference between the costs for building a new school and the original compensation will be subsidized by local town / township government. Standard for land acquisition compensation of Mucun Town is separately increased and that for other places are maintained the same.

RIFCIU-SWJTU 58 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 9) Zhang Yueliang, Party Secretary of Mucun Town, Liulin County (Cell phone: 13803488965) Bai Shuichang, Deputy Party Secretary of Mucun Town, Liulin County (Cell phone: 13994830648) 121. Basic situation of Mucun Town: there are totally 5 administrative villages (6 natural villages) in the town. Per capital area of arable land is 0.03mu and main source of income of the villagers is migrant working. There are 4 villages which will be influenced by the Taiyuan – Zhongwei – Yinchuan Railway Project: Village 1, 2, 3 (administrative village) of Mucun Town and Dujiawan Village (natural village).The total area of demolishing is 15,000m2, with about 300 holes and 131 households. Among which, there are 5 households of Village 1, 23 households of Village 2, 60 households of Village 3 of Mucun Town and 43 households of Dujiawan Village. 122. Compensation standard for each household: 700 yuan/m2 for buildings, 400 yuan/m2 for bungalows and 360 yuan/m2 for cave dwellings, without any decoration compensation. Procedures for allocation of removing and resettling compensation fund: independent account is set up specially for the railway removing and resettling compensation fund by the town government; then, the removing fund of provincial estate company will be allocated to the towns and townships through the development and reform bureau of the county and fully provided to the villagers. Method for resettlement: centralized resettlement is adopted throughout the town. One centralized resettling location is planned for each village and totally 4 locations are included. The area of land for centralized resettlement is about 22mu and the land expropriation cost shall be settled by the village (group).The cost of “three supplies (water, electricity and road) and leveling of ground” will be granted as per 10,000 yuan/hole and actual construction will be carried out by the village (group). 123. Resettlement compensation: special compensation standard is adopted on the basis of the county policies: 60,000 yuan/mu for irrigable land, 14,400 yuan/mu for dry flat land, 9,000 yuan/mu for sloped arable land and 2,500 yuan/mu for unused land. Conduct monetary compensation for households with their land expropriated as per each affected household. Land change is not practical. Compensation for additives (forest land and young crops) shall be directly provided to the household. According to requirements of Document No. 182 issued by provincial department, 80% of the land expropriation fund (exclusive of compensation for additives and young crops) will be allocated to the individual whose land has been expropriated and 20% of the fund will be left to the village committee for collective use. 124. Social security policy for households whose land has been expropriated: rural minimum living security insurance will be conducted as per national policies. However, the affected households in the Taiyuan – Zhongwei – Yinchuan Railway Project have not been included in the social security coverage. Households of the town whose land has been acquired have basically lost their land, with per capital area of arable land only 0.03mu. We hope that the social security department shall put the social and security policies in to practice soon.

RIFCIU-SWJTU 59 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 4.4 Monitoring on results of resettlement of enterprises and public institutions 4.4.1 Assessment on general resettlement results of enterprises and public institutions 125. Resettlement of related enterprises, public institutions and individual business runners has been progressed well. The main resettling method as per related policies is monetary compensation. Affected enterprises may obtain the compensation as per the standard for assessed compensation price. Affected enterprises shall seek for proper resettling locations by themselves, but shall finish the land expropriation procedures as per the resettling policies with the help of local resettlement department. At present, all affected enterprises have received resettling compensation, including compensation for land use of the plant area, removing of plant buildings, moving costs and compensation for production loss. Some enterprises has resumed production by renting a plant or adjusting the production line within the unacquired plant area. And some enterprises do not need to restore due to shutdown or transformation. So generally speaking, only 70% of the enterprises have to be restored. Enterprises and public institutions, especially for those schools are demolished and resettled in a well way. Surveys on sampled resettlement results of affected enterprises, public institutions and individual business runners are as follows. See Table 4-5 for the resettlement of affected schools. Table 4-5 Resettlement of the Affected Schools

Compe nsation Affected amoun School name Restoration progress areas t (10,000 yuan) Lishi Xiashuixi Primary School 200 Restored Wenshui Beixiaci Primary School 90 Restored 94.524 Jundu Primary School Restored Liulin 7 Chugou Primary School 150.8 Restored Longmenhui Primary School 99.1 Restored Qilingou Primary School of Weijialou 135.00 Restored Township 00 Hengsha Miaowan Primary School of Weijialou 85.000 n Restored Township 0 County 126.55 Xiaoya Primary School of Weijialou Township Restored 45 Dingbia Xinghai Hope Primary School of Hongliugou 87.000 n Restored Township 0 County Shilipu Village Primary School of Zhangjiabian 234.82 In the transitional period now and to be Township 00 restored Dingjiagou Village Primary School of 193.92 In the transitional period now and to be Zhangjiabian Township 00 restored 22.444 Will be abandoned after merging with Huobaiwan Primary School of Yihe Town Suide 2 other primary schools County Will be abandoned after merging with Mantangchuan Central Primary School 1.7100 other primary schools Government of Yihe Town( Yihe Middle 164.60 Recovered School) 11 Well, water supply tower and water supply 6.0000 Recovered

RIFCIU-SWJTU 60 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

pipes of the Central Primary School of Yihe Town Merged with vocational educational 1030.3 center of the county and will not be Agricultural and Vocational Middle Schools 554 restored.

Playground and sound insulation glasses of 44.800 Restored Shijiawan Middle School 0 2766.6 Total 17 299 From the Resettlement Department The New Central Public Health Center of Yihe Town 126. Yihe Central Public Health Center locates in the east to the urban areas of Suide with a distance of 30 km, serving for nearly 30,000 people from 69 administrative villages. A compensation amounting to 720,000 yuan will be obtained after land acquisition and relocation for Taiyuan-Zhongwei-Yinchuan Railway. In accordance with the planning of the health care department of Suide County, the new public health center will include a two-storey business building which has been built in 2008, with an area of 720 m2, 7 departments and 36 doctors. This land acquisition provides a good opportunity and some funds for restoration of this public health center, leading to a great improvement in the new public health center. Therefore, both the staff and residents in the serving area are quite satisfied.

Fig. 10 The New Central Public Health Center of Yihe Town The transitional Shilipu Primary School 127. There are over 20 students in the Shilipu Primary School. Other students transferred to the primary school of the county gradually upon demolition of this school. The school currently locates at the office building of village committee for temporary transition. The educational supervision department of the County and the village committee are discussing and planning a new school. Compensation for demolition of this school amounts to 2,348,200 yuan, which is enough to build a good primary school.

RIFCIU-SWJTU 61 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Fig. 11 The Transitional Shilipu Primary School The New Dragon King Temple of Qilingou Village, Weijialou Township, Hengshan County 128. Compensation for demolition of the Dragon King Temple of Qilinggou Village, Weijialou Township, Hengshan County amounts to 1.12 million yuan. The local railway construction unit has provided great assistance in restoration of this temple. During restoration, China Railway No.16 Engineering Group Co., Ltd. has offered 150,000 yuan to built a new road to transport constructional materials, etc.

Fig. 12 The New Dragon King Temple of Qilingou Village, Weijialou Township, Hengshan County

The New Qilingou Primary School 129. The new Qilingou Primary School has 47 students and 8 teachers, including the pre-school and the first to sixth grade. There are canteen and dorms special for students. The students can enjoy free breakfast, lunch and boarding. Compensation for demolition of the old Qilingou Primary School amounts to 1.35 million yuan. After restoration, there is a great improvement in the learning and teaching environment and the auxiliary facilities, so teachers, students and rural residents are quite satisfied.

Fig. 13 The New Qilingou Primary School RIFCIU-SWJTU 62 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

The New Miaowan Primary School 130. The new Miaowan Primary School is a complete primary school with 114 students and more than 10 teachers. Compensation for demolition of the old school amounts to 850,000 yuan. There are canteen and dorms special for students in the new school. The students can enjoy free breakfast, lunch and boarding. After restoration, there is a great improvement in the learning and teaching environment and the auxiliary facilities, so teachers, students and rural residents are quite satisfied.

Fig. 14 The New Miaowan Primary School The New Xiaoya Primary School 131. The new Miaowan Primary School is a complete primary school with 54 students and more than 9 teachers. Compensation for demolition of the old school amounts to 1.26 million yuan. There are canteen and dorms special for students in the new school. The students can enjoy free breakfast, lunch and boarding. After restoration, there is a great improvement in the learning and teaching environment and the auxiliary facilities, so teachers, students and rural residents are quite satisfied.

Fig. 15 The New Xiaoya Primary School The New Xiashuixi Primary School The new Xiashuixi Primary School is a complete school, including the pre-school with 360 students and 19 teachers.Compensation for demolition of the old school amounts to 2 million yuan. With assistance of the local educational department, the Xiashuixi Primary School is restored in the Fengshan Street. The new school is equipped with advanced teaching and learning facilities, therefore, the rural residents, teachers and students are quite satisfied with the new school.

RIFCIU-SWJTU 63 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank

Fig. 16 The New Xiashuixi Primary School

4.5 Monitoring over restoration of infrastructures 132. Infrastructures reconstruction caused by Taiyuan – Zhongwei – Yinchuan Railway Project includes such items as roads, irrigation works, pipelines, communication lines and power supply lines. According to the agreements reached between the Ministry of Railways and local government, infrastructures affected shall be reconstructed following two principles: one is that construction must be carried out before demolishing in order to avoid affecting normal production and living of local people; the other is that reconstruction shall be conducted as per the grade and quality of the original to avoid decreasing infrastructure level of area affected. The monitoring group has, through the surveys, confirmed that the above mentioned principles have been followed in general; the reconstruction standard of many infrastructures have exceeded the original projects and local governments have not paid for the extension. The new projects such as walkways, culverts and small bridges have been built for the use of the relocated residents but local governments have not paid for such projects either. Therefore, local governments have expressed satisfaction towards the reconstruction of infrastructures. However, there are still some leftover problems by the construction activities which will be negotiated and solved by the Owner and local resettlement department. 4.6 Monitoring over recovery of temporary land acquisition 133. In construction, the quantity of temporary land acquisition is subject to actual land acquisition and compensation is calculated according to land use time generally. Special problems will be solved according to the specific situation. For temporary construction site, the construction company shall decide the quantity of land to be used based on the construction needs and directly apply to the county (municipal) and district land management departments. Through joint site selection, verify the land classification and surface additives and sign the agreements on temporary land use and reclamation of land. Then, the land will be allocated by the county (municipal) and district land management departments to the construction company for use. If the service life is over, reclamation shall be conducted in time and the land shall be returned to the original village and group for cultivation. Compensation for temporary land use shall be calculated as per the adjacent similar land year by year. If annual production value is unavailable, the fee shall be negotiated accordingly. 134. The temporary land use for which the compensation shall be conducted as for permanent land expropriation includes: temporary sites for beam plants and construction walkways. As it is difficult to reclaim, compensation instead of acquisition is adopted during expropriation. Such temporary land use shall be compensated as per the standard for that of permanent land use. The above said land

RIFCIU-SWJTU 64 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank use accounts for 30% of all temporary land use. As the monitoring group has understood that there are lots of occasions for temporary land use in the Project. Any land related to such uses has been promptly compensated and thus the affected villagers have no grudges about this.

RIFCIU-SWJTU 65 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 5 Monitoring on Resettlement Organizations 5.1 Overall monitoring on resettlement organizations 135. The fact that whether land acquisition, house demolition and resettlement in Taiyuan-Zhongwei-Yinchuan Railway Project can strictly comply with Resettlement Action Plan standards or not depends largely on a strong and powerful resettlement organization. Viewed from what the Monitoring Group has got from on-spot investigations that the railway construction departments and local governments have all established complete top-to-bottom resettlement management and organization systems, with experienced cadres and effective rules and regulations. 136. Responsibilities of a specially designated officer of Asian Development Bank(ADB) Division of Foreign Investments Administration Office of the Ministry of Railways are to check the implementation of resettlement by relevant railway departments, coordinate with local governments, communicate with WB resettlement officers, keep in touch with external independent monitoring organizations and review reports on resettlement activities. This role strengthens the guidance of the Ministry of Railways to resettlement activities. 137. Resettlement management organization in Taiyuan-Zhongwei-Yinchuan Railway Project is a complicated system. It needs participation of many departments at various levels, so coordination and communication are extremely important. The Ministry of Railways, Taizhongyin Railway Co., Ltd., Shaanxi Province, Shanxi Province and Ningxia Hui Autonomous Region all attach great importance to the coordination among them. They hold meetings regularly, exchange information in time, inform relevant conditions each other, find problems and settle them accordingly. In addition, what have been discussed and determined during meetings are summarized in form of minutes of meeting, which are printed as written documents and distributed to resettlement management organizations at all levels. As a result, resettlement activities go forward more smoothly. 5.2 Specific monitoring on resettlement organizations 5.2.1 Monitoring on resettlement organizations of Taizhongyin Railway Co., Ltd. 138. Taizhongyin Railway Co., Ltd. has established three construction headquarters in Shanxi Province, Shaanxi Province and Ningxia Hui Autonomous Region respectively, and set up Special Land Acquisition & House Demolition Office in the Company, where 6 personnel are arranged, who are permanently resident in the said three construction headquarters respectively and responsible for land acquisition, house demolition and resettlement. 5.2.2 Monitoring on resettlement organizations of local governments 139. All enforcement departments of local governments have established resettlement management and organization systems from top to down, provided competent cadres with rich resettlement experience and formalized a set of effective and feasible rules and regulations. Formal documents have been issued for establishing leading teams and offices from provinces and districts to towns and townships. Principals act as team leaders and leaders of enforcement departments as office directors. 140. On May 26, 2005, the General Headquarters Supporting Taiyuan-Zhongwei-Yinchuan Railway Construction was established as a provincial leading organization in Ningxia Hui Autonomous Region, under which, overall coordination office, fund financing & management office and land acquisition and house demolition office are established in the scope of responsibilities of the Development and Reform Commission, Finance

RIFCIU-SWJTU 66 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Department and Department of Land and Resources of Ningxia Hui Autonomous Region respectively. Upon the establishment of General Headquarters, cities and counties (districts) related to Taiyuan-Zhongwei-Yinchuan construction and Hongsibao Management Commission were required to found the “Leading Group Supporting Taiyuan-Zhongwei-Yinchuan Construction”. The Department of Land and Resources of Ningxia Hui Autonomous Region is responsible for land acquisition and house demolition, and Ningxia Comprehensive Investment Company (as the representative of Ningxia investors) is responsible for financing. 141. “Shaanxi Railway Construction Leading Group” has been established in Shaanxi Province; the Coordination Office headed by Bai Yuren (deputy mayor of Yulin City) has been established in Yulin City; coordination leading groups and offices, with deputy heads of counties as leaders and chiefs of other relevant departments as group members have been established in other counties. For land acquisition and house demolition, the provincial land and resources department is responsible, provincial development and reform commission is responsible for coordinating and control of funds, and Shaanxi Local Railway Co., Ltd. (as the representative of investors of Shaanxi Province) is responsible for financing. 142. Shanxi Working Group of Shanxi Taiyuan-Zhongwei-Yinchuan Railway has been established in Shanxi Province, and Taiyuan-Zhongwei-Yinchuan railway construction and coordination leading groups have been established in each city and county (district). Shanxi Development and Reform Commission are responsible for overall coordination of land acquisition and house demolition in Shanxi Province. The Real Estate Investment Co., Ltd. of Shanxi Province (as the representative of the investors in Shanxi Province) is responsible for financing and appropriation of land acquisition and house demolition funds. The provincial land and resources department is in charge of land acquisition; provincial development and reform commission is responsible for house demolition with detailed operations done by real estate companies; forestry department is in charge of acquisition and demolition of forest land. 5.3 Measures for strengthening capabilities of organizations 143. Though organizations are considered to be sound, it is undeniable that there are still problems in terms of capabilities of organizations. Therefore, railway departments and local resettlement organizations will take the following measures to strengthen capacities of organizations: A. Staff of organizations at all levels shall consist of professionals and administrative staff. Staff shall be qualified with professional skills and/or administrative knowledge. B. Main staff members of organizations at all levels shall be organized to take part in professional training, to understand domestic resettlement policies and relevant requirements of ADB to improve professional skills and abilities to deal with policy-related issues; C. Enough funds and facilities shall be available; D. Database shall be established and information feedback shall be strengthened to ensure fluent top-to-bottom and bottom-to-top information flow. Major issues shall be determined and solved by leading groups; E. Reporting system and internal monitoring shall be strengthened and problems discovered shall be settled as early as possible; F. External monitoring & evaluation system and warning system shall be established.

RIFCIU-SWJTU 67 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 6 Public Participation & Complaint Channel 6.1 Public participation 144. The public participation of this Project is composed of: ① Public participation in the preparation period of the Project; ② Public participation in the implementation period of the Project. The standard for examining the extent of public participation is: ① Public’s access to the information concerning the policies on land acquisition and resettlement. More timely and more detailed information about the policies indicate greater extent of public participation; ② Public’s right to express their opinions on the policies of land acquisition and resettlement. The greater the right of the public to criticize the policies and the right to express their opinions, the greater the extent of public participation is. The main contents and manners of public participation are: ① Conference; ② Advance notice (inform the public the policies through media and posted notifications); ③ Participation in survey on property loss and social economy investigation; ④ Offering comments on the compensation standards; ⑤ Selection of locations for building houses; ⑥ Self-built houses; ⑦ Ways of employment; ⑧ Offering comments on the usage of the funds during compensation for land acquisition. 145. Taiyuan-Zhongwei-Yinchuan Railway Project involves the relatively developed areas in Shaanxi Province, Shanxi Province and Ningxia Hui Autonomous Region, where the people have strong awareness of their rights and individual consciousness. They have the courage and skill to defend and acquire their benefits. Therefore, this Project will have a greater extent of public participation. The Monitoring Team has learnt from the field investigation that both provinces and the autonomous region have extensively publicized the significance and purpose of the Project through broadcast, television and newspaper prior to land acquisition and resettlement. The people there have shown much concern on the quantity and time of land acquisition as well as the standards for compensation. The information concerning compensation standards and fund allocation have been posted in the affected villages at least twice. 146. The three issues that are most concerned by local people are: the first is the distribution and usage of the compensation funding; the second is the arrangement of the local labor force; the third is their housing sites. For the issue of funding usage, which people concern most, the two provinces and the autonomous region have taken similar actions: once the funds have been allocated to the basic level of villages and groups, the villagers are summoned to conferences for negotiating on the plan for distributing using the funds; during the usage of the fund, the village committees are monitored by the supervision teams which are elected by the villagers; the notice for final destination of every sum of funds is posted in the villages and reviewed by every villager. The above measures can basically ensure that the funds can be distributed and used under the will of the villagers. The monitoring team has not detected any embezzlement of the funds nor received any complaints in this respect. 147. The displaced persons are also greatly concerned with the program of arranging the local labor force. Employment in the second industry and third industry or employment in their own manners and land exchange between displaced persons are all closely associated with the benefits of the displaced persons. The monitoring team has learnt that the displaced persons around urban areas are not much interested in land exchange. They usually choose their employment in the second industry and the third industry and seek jobs in their own ways. However, the displaced persons living in the villages along the railway line more focus on land exchange, which indicates

RIFCIU-SWJTU 68 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank that they are still dependent on their land. In general, each province has acted on the basis of willingness during settlement of the surplus labor force and shown full respect to the people involved who can select the best plan for themselves from the available options. The monitoring team is basically satisfied with what they have learnt everywhere. 148. Housing site is a traditionally concerned issue to peasants. Either the peasants living around urban areas or the peasants living along the railway line have paid considerable attention to housing site issues. On one hand, this is related to their custom. For instance, they are inclined to live with the people from the same lineage who share the same family name and live in a place in vicinity of their contracted lands. On the other hand, this is related to the environment and quality of their living. For example, they require satisfactory infrastructures such as water supply, power supply and roads near their houses and they prefer new homes near roads and markets. The displaced persons are quite attentive to the location of their housing sites, in addition to the strong mental comparisons among the peasants, while the optional sites are always limited, therefore the relocation of their housing sites can always lead to conflicts between displaced persons. Taiyuan-Zhongwei-Yinchuan Railway Project has successfully settled this issue. For the displaced persons from around urban areas, based on the fact their lands are left little, the governments picked other favorable locations and implemented unified planning, unified construction and unified solution to the problem of infrastructures, thus fully satisfying the requirements of the displaced persons. For the displaced persons from areas along the railway line, the government has adhered to the planning principles for new villages of peasants and implemented unified construction and unified settlement, which evaded possible conflicts and met the requirements of building socialist new countryside. The monitoring team believes that the housing site issue has been settled successfully, which is welcomed and praised by the displaced persons. The only imperfection is that the centralized resettlement sites are constructed rather slowly, then timely delivery to the affected villagers with house demolition fails to be implemented in some resettlement sites, leading to relatively long transition period and complaints from relocatees. 6.2 Compliant channel 149. During the process of land acquisition, house demolition and resettlement, displaced persons, who have any problem of production and/or living, or have any question and complaint of compensation and/or resettlement, can report and appeal through the following five channels: ① the Employer; ② External independent monitoring organization; ③ Headquarters or coordination groups at various levels; ④ Relevant complaint departments of government; ⑤ Lawsuit. 150. (1) Report to the Employer: the Employer is the borrower and the ultimate user of the land and is responsible for solving all kinds of problems arising during land acquisition, house demolition and resettlement. The monitoring team has learnt that Taizhongyin Railway Co., Ltd. (the Employer) has set its headquarters in Taiyuan and sub-command posts in the Suide County and Yinchuan City. The headquarters has established an office dedicated to land acquisition and house demolition issues, which has more than 2 full-time workers whose names and phone numbers have been informed to the affected village groups. The personnel of this office told the monitoring team that they received a great number of visits and complaints in the past year and answered to many requests of the people, of which the most frequently encountered problem was the construction of roads, bridges and water resource facilities. The leaders of some townships and towns told us that they were used to RIFCIU-SWJTU 69 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank bringing the problems to the railway company, because any problem brought to the local government would have to be solved by the railway company. Therefore a procedure was cut out and the problems were directly brought to the ultimate responsible party. 151. (2). Report to external independent monitoring organization: Members of the external independent monitoring organization came to the construction sites and conducted comprehensive surveys on the affected villages/groups and individuals once every half year during implementation of the Project. In virtue of the special nature of the external independent monitoring organization, many leaders from local governments and displaced persons preferred to trust this organization and report any problems to the personnel of this organization. During the door-to-door interviews, the monitoring team often encountered such cases and collected the complaints that would be delivered to the headquarters and the local governments, which would generate the focuses to be followed and inspected in the next stage of monitoring and evaluation. 152. (3). Report to headquarters or coordination groups at various levels: The headquarters or coordination groups contracted with the land acquisition work and resettlement work on behalf of the local governments and they are responsible for solving various problems coming up during the process of land acquisition and resettlement. During the field surveys, the monitoring team learnt that the headquarters and coordination groups established specialized work teams dedicated to the Taiyuan-Zhongwei-Yinchuan Railway Project. Their complaint phone numbers were known to the public. The displaced persons saw them as trusted officials and spokespersons for their benefits. The displaced persons mostly turned to the headquarters and coordination groups for help in case they had any problems. According to what the headquarters and coordination groups reported to the monitoring team that, in every joint conference of the railway company and the local people, they collected all opinions from the people and delivered them to the railway company who was urged to solve the problems as soon as possible. The headquarters and coordination groups would directly accept and settle the issues in their own jurisdiction and provide satisfactory solutions to the displaced persons. If any problem of a grass-roots government was revealed, they would dispatch specially assigned persons to conduct inspections and settle the issues. The monitoring team members felt that the headquarters and coordination groups were truly responsible and devoted to the resettlement job. They were serious to the problems reported by the displaced persons and swift in solving the problems. 153. (4). Relevant complaint departments and legal departments at all levels can also provide an effective channel for complaints. Any affected people can bring conflicts to a superior complaint department for settlement or have them solved through lawsuit if they are willing to do so.

RIFCIU-SWJTU 70 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank 7 Conclusions, Problems and Suggestions 7.1 Monitoring and evaluation conclusions 154. As for the land acquisition, house demolition and resettlement of Taiyuan-Zhongwei-Yinchuan Railway Construction Project, the former two items have been almost accomplished. For the overall progress of land acquisition and house demolition, Ningxia Hui Autonomous Region has almost accomplished the whole task of land acquisition & house demolition and realized basically living environment restoration for the affected people; the land acquisition and house demolition in Shaanxi Province have almost been finished, but a plenty of work concerning the demolition and resettlement needs to be completed, especially the construction of concentrated resettlement sites and allocation of house sites, of which the progress and quality will surely influence the daily life and living environment restoration of the affected people; the land acquisition and house demolition in Shanxi Province have made much progress quickly and the land acquisition has almost been finished, and in key areas (such as Lishi District of Lvliang City, Xiaodian District of Taiyuan City, Development Zone of Jinzhong City, etc.) where land acquisition & house demolition were started later, final stage of house demolition and resettlement has been started. Generally, work progress of land acquisition, house demolition and resettlement of most areas along the Taiyuan-Zhongwei-Yinchuan Railway is progressing normally. 155. The procedure of compensation and resettlement for Taiyuan-Zhongwei-Yinchuan Railway is carried out basically according to the Resettlement Action Plan of the Project. Though there are distinctions in the progress of the land acquisition and house demolition in individual regions along the Railway, all works have been done in accordance with the procedure that legally determining the policy and scheme for compensation and resettlement, ensuring that the compensation fund appropriation is in place prior to the land acquisition and house demolition. In addition, the procedure for survey and measurement of the affected objects, public notification of the affected amount and of the policy for compensation and resettlement, signing resettlement agreement with the affected people, etc. have been implemented carefully. The affected people are informed of the policy of compensation and resettlement, the channels for complaints and suggestions during the land acquisition and house demolition are unimpeded. In general, all suggestions from the affected people have been handled and fed back promptly by the resettlement department. 156. Great importance has been attached to the compensation and resettlement for people affected by land acquisition and house demolition. The resettlement departments in most of regions have provided various optional schemes for land acquisition and resettlement, including land adjustment, monetary arrangement, social security, etc., especially in Shanxi Province, specific measures have been taken for the implementation of social security funds for peasants whose land are acquired, thus making the social security measures for affected people more indemnificatory. Resettlement measures for farmers without any land in Suide County, Shaanxi Province are quite appropriate, so the affected rural residents do not worried about their lives. A new compensation criterion for land acquisition and relocation which is formulated in accordance with the social and economical development will be issued in 2010 in Ningxia Hui Autonomous Region, so the affected persons will be compensated better. Meanwhile, in Shanxi Province, according to actual conditions, the compensation standard for people affected by house demolition has been actually improved by increasing the subsides for interior decoration of houses demolished, which is worth of praise and encouragement. Except that the compensation has been

RIFCIU-SWJTU 71 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank ensured to be appropriated in place once or several times (typically twice) during house demolition and resettlement, the measures including providing scattered or concentrated land for resettlement have been taken to ensure that the affected people can be provided with house site free of charge for new house reconstruction. The field assessment and survey made by the monitoring organization indicates that the resettlement departments in individual regions have tried their best to meet the requirements concerning the resettlement for the affected people and the reconstruction of resettlement houses completed has acquired better effects. Serious cases regarding conspicuous issues of residence and resettlement have not been found yet by the monitoring organization. 157. Land acquisition, house demolition and resettlement organizations established with well-defined duties from superior to inferior levels in individual regions are still working actively and playing an important role in realizing the goal of land acquisition, house demolition and resettlement for Taiyuan-Zhongwei-Yinchuan Railway Project. 158. A definite conclusion can be drawn from different information collected: in the process of land acquisition, house demolition, resettlement and compensation of Taiyuan-Zhongwei-Yinchuan Railway Project, the affected people have been resettled well and the restoration regarding their production and life is being carried out effectively, most of the affected people are satisfied with compensation and resettlement received. 7.2 Problems and suggestions 159. In the monitoring and survey, the external monitoring, survey and evaluation organization has carries out monitoring and evaluation strictly in accordance with the Resettlement Action Plan (RAP) of the Project submitted previously to Asian Development Bank (ADB). According to the requirements of RAP, some unsatisfactory issues have been found by the monitoring and evaluation team. The details of the main problems found, the solutions and suggestions for solving these problems are described as follows: Although the displacement costs greatly exceed the budget, with the joint effort of the Owner and the local resettlement department, various displacement costs have been almost paid. But up until now, some displacement costs have not been paid. The monitoring group hopes that the resettlement department and the Owner would pay all the displacement costs by all kinds of efforts for the sake of displaced persons.  Land acquisition has finished already, but the resettlement after land acquisition is kind of delayed. There are no farmers without any land in Ningxia Hui Autonomous Region, so land acquisition and relocation in Ningxia has finished. Farmers without land in the Suide County, Shaanxi Province are properly resettled through various measures. Although there is social security policies for farmers without land in place in Shanxi province and the Owner and the Resettlement Department have paid a social security fund amounting to 80 million yuan, the rural residents in Xiaodian District, Lishi District and Liulin County whose conditions are in compliance with the conditions for farmers without land have not obtained social security insurance. The monitoring group hopes that the relevant departments of Shanxi Province would promptly enforce the corresponding policies to solve the social security problems for farmers without land after land acquisition.  Although the land acquisition and relocation of this Project is crucial and

RIFCIU-SWJTU 72 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank complicated, proper resettlement has been achieved due to a great effort and a lot of costs for construction of resettlement sites paid by each resettlement department and the owner. But reply on land acquisition for construction of the concentrated resettlement site of Xiaobeige Village, Beige Town, Xiaodian District, Taiyuan City, Shanxi Province has not obtained. These problems have seriously caused poor living conditions of relocated households who can not stop complaining for long-term living in temporary transitional houses under poor conditions. In addition, the two resettlement sites in Lishi District and the Dingjiagou Resettlement Site in Suide County have been built. But the displaced households can not build new houses due to a delay in allocation of homestead for lacking of village cadres. Monitoring organization hopes that relevant resettlement departments would actively solve problems concerning the construction of resettlement sites and allocation of homestead, and handle the issues of housing sites for relocated households timely so that they can live in appropriate new houses without suffering from hot weather in summer and cold weather in winter. The railway has been put into operation for a year. But production and living facilities of some affected villages and teams are still not recovered for the impact of railway construction and a few unsolved problems. The monitoring group has been informed that in March 2012, the Owner would check along with the railway route with the participation of the local resettlement department and construction organizations. Therefore, various unsolved problems might be solved during the check. The monitoring group hopes that the Owner and the railway construction organizations will cooperate actively in restoration of normal production and living of affected persons. Some temporarily expropriated lands have not been restored yet, so railway construction companies are requested to actively bring them into restoration through cooperation with local resettlement departments. 7.3 Work arrangements of external resettlement monitoring organization in the next step 160. The following items will be monitored specially by the external independent monitoring organization: Particularly focus on construction of the concentrated resettlement site, allocation of homestead and restoration of new houses for affected persons in Dingjiagou Village, Suide County, Shaanxi Province and Xiaodian District and Lishi District in Shanxi Province; Continuously focus on the restoration of affected infrastructure; Particularly focus on the implementation of social security for peasants whose lands are acquired in Shanxi Province; Track the production and living restoration of people affected by land acquisition and house demolition.

RIFCIU-SWJTU 73 Monitoring Report on Resettlement Taiyuan-Zhongwei-Yinchuan Railway Construction Project loaned by Asian Development Bank Attachments Attachment 1 Lists of Enterprises, Institutions and Schools demolished for Taiyuan-Zhongwei-Yinchuan Railway Annex 1 List of Enterprises and Institutions Demolished for Taiyuan-Zhongwei-Yinchuan Railway of Shanxi Province

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Affected areas Name of enterprises and public institutions

Lishi Xiashuixi Primary School Wenshui Beixiaci Primary School Liulin Jundu Primary School Chugou Primary School Longmenhui Primary School Dajue Temple

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Annex 2 Annex 1 List of Enterprises and Institutions Demolished for Taiyuan-Zhongwei-Yinchuan Railway of Shaanxi Province

S/N Unit S/N Unit 29 National Benchmark in Shuangmiaowan Village, 1 Shilipu Cigarette Storehouse of Yulin Cigarette Factory Zhoujian Town, Zizhou County 30 Huo Suiyi Coal Charge 2 FAW Service Station of Suide County Yard of Lougou Village, Yihe Town, Suide County 31 Fengqu Transform 3 Das Auto Garage of Suide County Substation of Zizhou County 32 Dalihe Grass Company of 4 Agricultural and Vocational Middle Schools of Suide County Zizhou County 33 Playground of Shijiawan 5 Hongkang Dairy Limited Company of Zizhou County Middle School of Suide County 34 Well, water supply tower and water supply pipes of 6 Huigui Service Station of Zizhou County the Central Primary School of Yihe Town, Suide County 35 Dingjiagou Village Mobile Communication Station of 7 Xingguo Oil and LNG Reserve Station of Zizhou County Zhangjiabian Township, Suide County 36 Liujiawan Village Sand 8 Hualong Coke & Coal Transportation Co., Ltd in Suide County Yard of Xindian Township, Suide County 37 Shilipu Village Chicken Farm and Rabbit Farm of 9 Sanyanquan Transform Substation of Zizhou County Zhangjiabian Township, Suide County 38 Xiaoyazui and Wanghepu 10 Shijiawan Village Well of Suide County Quarry of Suide County 39 Insulation Glasses of 11 Fengqu Maintenance Squad of Zizhou County Highway Shijiawan Middle School of Suide County 40 Yihe Township Government 12 Fengqu Thermal Power Station of Zizhou County (Grease Factory) of Suide County 41 Yihe Township Cultural 13 Zhoujian Township Courthouse of Zizhou County Affair Administration (Temple) of Suide County 42 Huobaiwan Primary School 14 ABC Business Outlet of Zhoujian Town, Zizhou County of Yihe Town, Suide County 43 Mantangchuan Central 15 Wubu Nitrogen Fertilizer Plant Primary School of Suide County 44 Julong Company of Suide 16 Sanxing Sandpit of Wubu County County 45 Wanxing Cement Product 17 Matigou Guoxiang Brick Works of Zizhou County Limited Company of Suide County

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46 Dingjiagou Village Bitumen Road of Yanjiacha Village, Xindian Township, Suide 18 Hydrometric Station of County Suide County 47 Qilingou Primary School of 19 Traffic Police Squadron Camp in Yihe Town, Suide County Weijialou Township, Hengshan County 48 Miaowan Primary School of Temple of Lv Bu of Dingjiagou Village, Zhangjiabian Township, 20 Weijialou Township, Suide County Hengshan County 49 Xiaoya Primary School of Temple of Guan Yu and Temple of Virgin Empress of Dingjiagou 21 Weijialou Township, Village, Zhangjiabian Township, Suide County Hengshan County 50 Xinghai Hope Primary Dragon King Temple and Mountain God Temple of Dingjiagou 22 School of Hongliugou Village, Zhangjiabian Township, Suide County Township, Dingbian County 51 Shilipu Village Primary 23 Hejiajian Village Service Station of Yihe Town, Suide County School of Zhangjiabian Township, Suide County 52 Dingjiagou Village Primary Dragon King Temple of Qilingou Village, Weijialou Township, 24 School of Zhangjiabian Hengshan County Township, Suide County 53 Yihe Township Government The Western Shop Front of Shilipu Bridge, Zhangjiabian Township, 25 ( Yihe Middle School) of Suide County Suide County 54 Yihe Township Government 26 Suide County Swine Breeding Center (Vermicelli Factory) of Suide County 55 Zhang Shengrong Cattle 27 Xiaoya Village Temple of Hengshan County Farm of Suide County 28 Yihe Township Public Health Center of Suide County

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Annex 3 1 List of Enterprises and Institutions Demolished for Taiyuan-Zhongwei-Yinchuan Railway of Ningxia

Ningxia Region Sandstone factories(51 in total) Brickyards Ammunition depot Vineyards of Kemian Company Demolition factory Wanyuan Temple of Yuding Township

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Attachment 2 Compensation Criterion for Land Acquisition and Relocation of

Ningxia of 2010

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