6. Estimates of Compensation Fees for Land Acquisition and House Demolition

RP895

Public Disclosure Authorized Zhaotong Central City Environmental Construction Project Resettlement Action Plan (RAP)

Public Disclosure Authorized Public Disclosure Authorized

Management Office of Foreign-funded Urban Construction

Projects of Zhaoyang District, Zhaotong Municipality

Resettlement Office of World Bank Financed Zhaotong Central

City Environmental Construction Project

Zhaotong, China, November 2009 Public Disclosure Authorized

Summary A. Overview 1. The Zhaotong Central City Environmental Construction Project (hereinafter referred to as the “Project”) consists of 3 components: northern area water supply and pipeline project, central city sewage treatment and intercepting sewer project and central city river rehabilitation project. The Project has a construction period of 5 years and a total investment estimate of 825 million yuan, including a World Bank loan of US$60 million yuan. 2. The Project Coordinating and Leading Group of Foreign Funded Projects of Zhaoyang District, Zhaotong Municipality is the executing agency of the Project, and the Management Office of Foreign-funded Urban Construction Projects of Zhaoyang District and the Owner are the implementing agencies of the Project. According to the latest feasibility study outputs, the detailed socioeconomic survey and the impact survey, the Project Management Office (PMO) of Zhaoyang District, Zhaotong Municipality has prepared this RAP with the assistance of the China Cross-Cultural Consulting Center at Sun Yat-sen University (CCCC at SYU) and World Bank experts.

B. Impacts of the Project 3. During November 7-15, 2009, the Owner made a detailed survey of the key physical indicators affected by the Project, such as population, houses and attachments, land and special facilities, according to the latest feasibility study outputs, with the assistance of local governments at all levels, administrative villages, communities, villager team officials and the design agency. On the basis of the fieldwork, the consulting agency communicated with the design agency and the Owner, optimized and compared the options taking the local socioeconomic impacts of the Project into account, and took some effective measures to minimize land acquisition and resettlement. In the selection of options and the layout of other supporting facilities, settlements have been avoided as much as possible, farmland occupation reduced, and the local development plans and governmental opinions complied with. 4. The Project will affect 18 communities in 3 sub-districts, 4 administrative villages in 4 Xiangs/towns and 5,760 people out of 1,281 households of Zhaoyang District, in which permanent land acquisition will affect 2,084 people out of 463 households, and temporary land acquisition will affect 3,676 people out of 818 households. 2 enterprises/public institutions and 195 people out of 65 individual businesses will also be affected. According to the detailed impact survey, the Project will acquire 211.12 mu of farmland permanently. 5. Only the river rehabilitation project in the Project involves house demolition, with a demolition area of 10,417.65m², including private houses of 7,989.45m² (divided into rural and urban residential houses by land type,

including rural residential houses of 7,265.65m², involving 577 people out of 128 households; and urban residential houses of 723.8m², involving 27 people out of 6 households), collective houses of 1,864.8m², and houses of enterprises and public institutions of 563.4m². 604 people out of 134 households are involved in house demolition, all being residents that have a need to move. Other affected properties including special telecommunication and electric power facilities, power transformers, temporary bridges and other production and living facilities, and scattered fruit trees.

C. Policy framework and entitlements 6. For those unavoidably affected, the negative impacts arising from land acquisition and house demolition should be minimized in light of the resettlement objectives under the Land Management Law of the People’s Republic of China, Property Law, Decision of the State Council on Deepening Reform and Exercising Strict Land Administration (Document 2004 No.28), Regulations of Yunnan Province on Land Administration, the Guidelines on Improving the Compensation and Resettlement System for Land Acquisition (LR Issue [2004] Document No.238), and the World Bank operational policy OP4.12 Involuntary Resettlement and operational procedure BP4.12 Involuntary Resettlement and the appendixes thereto. Properties of those negatively affected should be compensated for at the replacement cost, and assistance offered so that they have sufficient opportunities to exceed or at least restore the former standard of living. 7. The main policy principles embodied in the policy framework are: (1) Measures should be taken where possible to minimize the negative impacts on displaced persons; (2) Compensation and resettlement programs can improve the standard of living of displaced persons or restore it to pre-displacement levels; (3) Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs; (4) All affected properties should be compensated for at the replacement cost; (5) The principle of construction before demolition should apply. Displaced persons should have obtained all compensation fees before land acquisition and house demolition, i.e., acquisition of land and relevant properties can only be conducted after compensation fees or a resettlement site and a moving subsidy have been provided; (6) The borrower should raise resettlement and compensation fees, including contingency costs for resettlement; (7) Identification of eligibility: The deadline of eligibility identification is the date of publication of the notice of land acquisition and house demolition. After this date, displaced persons may not build, expand or rebuild any house; not alter the intended use of any house or land; and not rent land or rent or sell any house. Population influx after this date will not be eligible for

compensation; and (8) House compensation fees should be based on the replacement cost.

D. Compensation rates for land and houses 8. According to the Land Management Law of the People’s Republic of China, the Guidelines on Improving the Compensation and Resettlement System for Land Acquisition, the Regulations of Yunnan Province on Land Administration, and the applicable policies and regulations of the affected municipality and district, the compensation rates for land acquisition of the Project have been fixed based on comments of the parties concerned (especially the affected groups) and a land price appraisal, and by reference to the established compensation rates for land acquisition of the sub-district offices approved by the Zhaoyang District People’s Government, Zhaotong Municipality in accordance with Uniform Annual Output Value Standard for Land Acquisition and Regional Integrated Land Compensation Rates of Yunnan Province (Interim) promulgated by the Ministry of Land and Resources of Yunnan Province, in which different areas are divided depending on the need to acquire rural collective land for urban construction, the location of acquired farmland, type of land utilization, land productivity, per capita arable area and overall economic level. Therefore, rates may vary from area to area, in which the land compensation rate of Longquan Sub-district is 68,150 yuan/mu; that of Taiping Sub-district 59,000 yuan/mu and that of Fenghuang Sub-district 71,300 yuan/mu. 9. The compensation rate for temporary land use is 1,500 yuan/mu together with a reclamation fee of 5,000 yuan/mu paid at a time. The period of temporary land use for construction is calculated as one year. The PMO will specify the use of the temporary construction site, restoration requirements and the compensation rate for temporary land use to be paid by the contractor in the construction contract signed with the contractor. Temporarily used land may be reused for farming by the farming household operating this land or by the construction agency and then delivered to the farming household. 10. During the feasibility study of the Project, resettlement should be minimized. For those unavoidably affected, the strategy for resettlement is to replace the lost house, land and other properties, infrastructure and income source. Of the three subprojects, only the river rehabilitation project involves house demolition. Urban houses affected by the Project will be appraised by a qualified real estate appraisal agency and then compensated for at the replacement cost. For rural houses to be demolished, displaced persons will have the two options of monetary compensation and building a house themselves in a planned plot. 11. The owners of the subprojects will ensure that the affected people are offered the entitlements to relocation before land leveling and house

demolition. Land compensation fees and moving subsidy will be paid to the affected villages or individuals. Compensation fees for houses, young crops and other properties will be paid directly to the affected individuals or entities. Compensation fees for infrastructure such as electric power and communication facilities will be paid to the authorities concerned for restoration.

E. Income and house restoration measures 12. All affected people will continue with their present occupations or do farm work. Of the 11 villager teams in the 5 communities involved in the acquisition of contracted farmland, the affected farmland area of 9 teams accounts for less than 10% of the village’s total farmland, and that of the other two teams accounts for less than 1%. Since the affected farmland area is small, the agricultural economy will not be affected greatly. After consultation with every affected village and the villager representatives, a rational restoration plan has been developed for these affected villages, and incorporated into the RAP in detail. According to the RAP, all affected people will be either compensated directly or reallocated land with collective mobile land or unused land to ensure that all villagers living on farming have land to farm. Those villages that take land reallocation measures will use compensation fees to improve the planting conditions, develop cash crops and conduct non-planting activities. In the construction process, the contractors of the subprojects will allocate unskilled jobs to the affected farmers. The implementation of the Project will bring welfare and economic development opportunities to most of the public in the affected areas. Implementing the resettlement plan effectively will also bring opportunities of improving production conditions, living environment and quality of life to some villagers affected by land acquisition and house demolition, play a positive role in promoting the economy of the affected areas, and generate favorable social and environmental benefits. 13. All the 604 people out of 134 households involved in house demolition will be relocated. Among them, 577 people out of 128 households are rural residents, who will be resettled by one-off cash compensation or build a house in a planning reallocated plot. 27 people out of 6 households are urban residents, who will be resettled by one-off cash compensation or property swap. During relocation, the relocated households will be offered opportunities to improve the current housing conditions. Those running a store will be offered a rented store in a similar area. Houses will be compensated for at the replacement cost.

F. Organization 14. The Office of the Project Leading Group will cause the Owner to carry out land acquisition and house demolition in strict conformity with the RAP.

The Zhaoyang District PMO will set up a special resettlement office. The owners of the subprojects are responsible mainly for relocation consulting, implementation and the timely granting of entitlements, with the assistance of the related Townships/towns and villages.

G. Vulnerable groups 15. The villages affected by land acquisition are mostly Han villages, and only Communes 4 and 5 of Nanwenquan Community involve some Hui villagers. Of all affected people, ethnic minority population accounts for 4.3% of the total population affected by permanent land acquisition and house demolition. In order to respect their customs and maintain their social relations, the whole affected ethnic minority population will be resettled in the former villages. 16. Economically vulnerable groups include extremely poor farmers, single mothers and the disabled. These vulnerable groups will be granted extra financial and physical support. If any vulnerable groups are involved in resettlement, these vulnerable groups will obtain the following extra assistance according to the RAP: (i) gratuitous house construction and relocation; (ii) payment of special subsidies, so that they can maintain their standard of living during house construction, and the specific amount of grant-in-aid will be determined based on the practical situation and their needs; and (iii) priority in obtaining appropriate job opportunities.

H. Appeal mechanism 17. Those losing their houses will be offered an opportunity to be reallocated a housing site. Those losing farmland will have an opportunity to consider an appropriate income substitution plan. All villagers will have a voice in deciding how collective compensation fees will be used. 18. In case of a dispute, the affected people will file an oral or written appeal to the village committee or the Xiang resettlement office first. If the dispute is not settled within two weeks, they may apply for reconsideration with the district resettlement office within one month. If the dispute is still not settled within one month, the offices of the provincial and municipal coordinating and leading groups of World Bank financed projects will endeavor to coordinate the PMOs and owners of the subprojects to find a solution. If necessary, the dispute will be finally settled at a civil court in accordance with the Law of Civil Procedure.

I. Monitoring and evaluation 19. The details of internal and external monitoring and evaluation are already included in the RAP. The Management Office of the World Bank Financed Yunnan Environmental Protection Project (Yunnan PMO) will employ an independent monitoring agency familiar with the resettlement of the Project to implement external monitoring and evaluation. This agency will confirm

to what extent the affected people have: (i) received their entitlements on schedule; and (ii) restored their livelihoods, income level and standard of living completely. It will also conduct a baseline survey before relocation, a survey semi-annually during the relocation period, and a follow-up survey annually by selecting representative samples (relocated households/villages) within two years after relocation. 20. The Yunnan PMO has established a quarterly reporting system, where it will report the progress of land utilization and resettlement to the World Bank through project reports. The Yunnan PMO will also provide an independent monitoring and evaluation report to the World Bank annually during resettlement implementation.

J. Budget and implementation plan 21. The budgetary estimate of all resettlement costs is 59.1948 million yuan (including taxes), accounting for about 7.18% of the Project’s total investment, including 20.473 million yuan for land, accounting for47.48%, and 48.977 million yuan for houses, accounting for 11.36%. This budget includes compensation fees for stop of business, moving subsidy, compensation for young crops, compensation for other properties such as houses and ground attachments, subsidy for vulnerable groups, implementation management fees, monitoring and evaluation fees etc. The Zhaoyang District Government will ensure that resettlement counterpart funds are available to avoid any shortage of funds in the resettlement process. 22. Since the Project has not passed the pre-assessment of the World Bank and is still at the feasibility study stage, and the construction schedule has not been determined yet, the resettlement schedule will depend on the progress of the Project. It is planned that land acquisition will begin 2-3 months after the assessment. Houses will be demolished within one month before the commencement of construction.

Contents 1. Background of the Project...... 12 1.1 Background of the Project ...... 12 1.2 Project composition and engineering overview...... 13 1.2.1 Project composition ...... 13 1.2.2 Engineering overview ...... 13 1.3 Natural and economic profile of the affected areas...... 17 1.3.1 Natural profile of the affected areas...... 17 1.3.2 Socioeconomic profile of the affected areas ...... 18 2. Impacts of the Project...... 19 2.1 Identification of the affected areas ...... 19 2.1.1 Permanent land acquisition ...... 19 2.1.2 Temporary land acquisition during construction...... 19 2.2 Impacts of the Project ...... 19 2.2.1 Affected population ...... 22 2.2.2 Permanent land acquisition ...... 24 2.2.3 Temporary land acquisition during construction...... 24 2.2.4 Demolition of houses and attachments...... 26 2.2.5 Individual businesses ...... 29 2.2.6 Organs, enterprises and public institutions...... 29 2.2.7 Scattered trees ...... 30 2.2.8 Special facilities ...... 31 2.2.9 Affected living facilities...... 32 2.2.10 Overview and distribution of affected ethnic minorities ...... 32 2.2.11 Vulnerable Groups ...... 35 2.3 Impact relief measures ...... 36 2.4 Resettlement plan...... 37 3. Legal and Policy Framework for Resettlement ...... 39 4. Compensation Rates...... 42

4.1 Compensation rates for land acquisition and occupation...... 42 4.1.1 Compensation rates for acquisition of collective land ...... 42 4.1.2 Compensation rates for use of state-owned land ...... 43 4.1.3 Compensation rates for temporary land occupation during construction ...... 43 4.2 Compensation rates for demolished houses and attachments ...... 44 4.3 Compensation rates for scattered trees...... 46 4.4 Compensation rates for organs, enterprises and public institutions... 47 4.5 Compensation rates for individual businesses...... 48 5. Restoration and Resettlement Plans...... 49 5.1 Objectives and tasks of resettlement ...... 49 5.1.1 Objectives of resettlement ...... 49 5.1.2 Tasks of resettlement...... 50 5.2 Compensation and resettlement for permanent land occupation...... 50 5.2.1 Impact analysis of land acquisition ...... 50 5.2.2 General resettlement plan ...... 52 5.2.3 Production and living resettlement plan...... 53 5.2.4 Endowment insurance for land-expropriated farmers ...... 55 5.2.5 Income restoration plan ...... 59 5.2.6 Relocation, reconstruction and resettlement plan for displaced persons...... 59 5.3 Restoration plan for temporarily occupied land...... 61 5.4 Restoration plan for affected vulnerable groups ...... 61 5.5 Restoration plan for ethnic minorities...... 62 5.6 Relocation and reconstruction plan for organs, enterprises and public institutions...... 64 5.7 Individual Businesses...... 65 5.8 Relocation and Reconstruction Plan for Special and Municipal Facilities...... 65 5.9 Organization and Management of Resettlement Implementation ...... 66

6. Estimates of Compensation Fees for Land Acquisition and House Demolition ...... 67 6.1 Basis of Preparation ...... 70 6.2 Principles of Compensation ...... 70 6.3 Compensation fees...... 71 6.3.1 Compensation Fees for Rural Displaced Persons ...... 72 6.3.2 Compensation Fees for Urban Displaced Persons...... 73 6.3.3 Compensation Fees for Relocation of Individual Businesses .. 74 6.3.4 Compensation Fees for Relocation of Enterprises and Public Institutions ...... 74 6.3.5 Compensation Fees for Reconstruction of Special Facilities ... 74 6.3.6 Compensation Fees for Producing and living facilities ...... 75 6.3.7 Other Fees...... 75 6.3.8 Basic Contingency Reserve...... 78 6.3.9 Taxes ...... 78 6.4 Disbursement of Funds...... 79 6.4.1 Sources of Funds and Principles of Disbursement ...... 79 6.4.2 Financial Management Agencies for Resettlement...... 79 6.4.3 Fund Flow...... 80 7. Organization...... 81 7.1 Organizational setup...... 81 7.2 Main responsibilities ...... 81 The specific agencies and their responsibilities are as follows:...... 81 7.2.1 Project resettlement coordinating and leading group...... 82 7.2.2 District project resettlement leading group...... 82 7.2.3 Sub-district/Town resettlement coordination teams ...... 83 7.2.4 Village committees/neighborhood committees ...... 83 7.3 Staffing...... 83 8. Public Participation and Appeals ...... 84 8.1 Public participation...... 84

8.2 Appeal mechanism and channel...... 87 8.2.1 Setup and composition of the appeal handling agency ...... 88 8.2.2 Functions of the appeal handling agency ...... 88 8.2.3 Appeal procedure ...... 89 8.3 Scope and mode of response to appealsError! Bookmark not defined. 8.3.1 Scope of response...... Error! Bookmark not defined. 8.3.2 Mode of response...... Error! Bookmark not defined. 8.4 Appeal report ...... Error! Bookmark not defined. 9. Resettlement Implementation Plan ...... 91 9.1 Implementation Procedure...... 91 9.2 Schedule...... 93 10. Monitoring and Evaluation Mechanism ...... 95 10.1 Purpose of internal monitoring...... 95 10.1.2 Methods and implementation procedure of internal monitoring ...... 96 10.1.3 Scope of internal monitoring...... 96 10.1.4 Internal monitoring agency and staffing ...... 97 10.1.5 Responsibilities of the internal monitoring agency...... 97 10.1.6 Cycle and reporting of internal monitoring ...... 98 10.2 Purpose of external monitoring...... 98 10.2.1 External monitoring agency and staff...... 98 10.2.2 Responsibilities of the external monitoring agency...... 99 10.2.3 Methods and procedure of external monitoring ...... 99 10.2.4 Scope of external monitoring ...... 101 10.2.5 Reporting system of external monitoring ...... 103 11. Entitlement Matrix...... 105 Attachment: ...... 109

1. Background of the Project

Background of the Project

Yunnan Province is located by the southwest frontier of China, borders on Guizhou Province and Guangxi Zhuang Autonomous Region in the east, Sichuan Province in the north, Tibet Autonomous Region in the northwest, Myanmar, Laos and Vietnam in the west and south. The province has a territory of 394,000 km2, including an upland area of 94%. At the end of 2005, the province’s urbanization rate attained 29.5%. During the 11th 5-year Plan, the province plans to reach an urbanization rate of 35%, a gross GDP of 522.5 billion yuan, a per capita GDP of 11,360 yuan and an annual GDP growth of 8.5% by 2010. However, the rapid development of urbanization and tourism has gone beyond the bearing capacity of the existing urban infrastructure, bringing great challenges to the overall urban living conditions. Deterioration of urban environment, such as water degradation in urban rivers, resulting in inland inundation, and a general lack of urban infrastructure that supports the urbanization process have emerged, which is especially true in small towns. Although great effort has been paid to pollution prevention and control in recent years, pollution remains serious in the surface water and main lakes near the cities in the province. For many years, the Yunnan Provincial CPC Committee and the provincial government have been attaching great importance to environmental infrastructure construction and protection, and committed to strengthening pollution control and ecological construction. During the 9th and 10th 5-year plans, the Yunnan Environment Project with focus on the control of Dianchi Lake pollution was implemented using World Bank lending by constructing a range of sewage and waste treatment facilities, playing an active role in promoting the integrated regulation of Dianchi Lake pollution and the environment improvement of key cities. In order to further promote the integrated regulation of key river basins in the province, and accelerate the urbanization process of key cities, the provincial government has sought for World Bank lending actively, and selected 32 projects in Kunming, Dali, Lijiang and Zhaotong Cities/Prefectures from nearly 100 candidate projects in 10 cities and prefectures, which constitute the Yunnan Urban Environmental Project (Phase 1), in light of local development plans and the priorities supported by the World Bank. Since 14 subprojects, including the environmental protection and regulation of Erhai Lake in Dali Prefecture, and environmental infrastructure construction in Wenshan, Malipo and Maguan Counties, Wenshan Prefecture, are located in the basins of the upper-reach branches of the cross-border Lancang-Mekong River and Red River, the subprojects concerning cross- border rivers have been withdrawn from the proposed Yunnan Urban Environmental Project, and are not implemented for the moment in light of the applicable provisions of the World Bank, and the consultations between the Ministry of Finance and the World Bank. Therefore, according to the scope of

the Project identified in the assessment and the final willingness of the Owner, the World Bank Financed Yunnan Urban Environmental Project (Phase 1) consists of 18 subprojects, with an estimated gross investment of 1.22326 billion yuan, in which a World Bank loan of US$90 million (equivalent to 612.16 million yuan, the ratio of the US dollar to the RMB being 1:6.8) is under application, accounting for 50% of gross investment, and local counterpart funds will be 611.1 million yuan. Since the credit line of the World Bank for the Yunnan Urban Environmental Project is US$150 million, a World Bank loan of US$90 million is under application for the 18 subprojects of Phase 1, with US$60 million remaining. The Zhaotong municipality plans to apply for part of this loan for the construction of the Zhaotong Central City Environmental Construction Project (hereinafter referred to the “Project”). Zhaotong Municipality is located on northeastern Yunnan, in the lower Jinsha River, and at the junction of Yunnan, Sichuan and Guizhou Provinces, bordering Liangshan Prefecture and Yibin City, Sichuan in the north and west, Bijie Region in Guizhou in the east, and Qujing, Yunnan in the south. The city has a territory of 23,021 km2, and is located within east longitude 102°52 - 105°19 and north latitude 26°3-28°40 , with a maximum span of 241 km from east to west and 234 km from south to north. The construction sites of the Project are located mainly in Zhaoyang District, Zhaotong, Yunnan, 381 km away from the capital city Kunming of Yunnan, and about 500 km away from the other 3 southwestern central cities Chongqing, Chengdu and Guiyang by highway. The central city sewage treatment and intercepting sewer project is located mainly in the northern new area of the city.

Project composition and engineering overview

Project composition

The Project consists of three subprojects, which are the central city river rehabilitation project, the northern area water supply and pipeline project and the central city sewage treatment and intercepting sewer project, with a construction period of 5 years and a total investment estimate of 825 million yuan, including a World Bank loan of US$60 million.

Engineering overview

1. Zhaotong Central City the river rehabilitation project The scope of this project includes: (1) Bank protection: river protection and reinforcement, regulation of watercourses of 48.162km, including 17.935km for the Liji River system and 30.227km for the Tuwei River system (2) River dredging: for a length of 48.162km and a quantity of work of 154,000m3

This project involves the permanent acquisition of 107.62mu of land, which will be used to broaden the watercourses of the Yaowan and Xiushui Rivers mainly. This land is being cultivated, involving 842 people out of 187 households. This project involves the temporary acquisition of 385 mu of land, 94.62 mu for the sludge drying plant. Since the local people have the habit of building a house right beside dykes, the range of this project also involves the demolition of 134 houses, including 128 rural and 6 urban residential houses. 2. Northern area water supply and pipeline project The scope of this project includes: construction of Taiping and Jingmen Waterworks, a booster pump station, a 23km delivery pipeline from Yudong Reservoir to Taiping Waterworks and a northern area water distribution pipeline of 113.38km. Expected permanent land acquisition: 142.7 mu, including 100.2 mu for Taiping Waterworks, 36 mu for Jingmen Waterworks and 6.5 mu for the booster pump station; pipeline construction involves the temporary acquisition 600 mu of land (borrowed). This project does not involve resettlement. 3. Central city sewage treatment and intercepting sewer project The scope of this project includes: construction of northern area supporting sewer pipelines of 61.507km, an old urban area sewage pipeline of 29.451km, expansion of former Zhaotong Sewage Treatment Plant, with a total floor area of 136.8 mu. The construction site of this project has been acquired. This project is at the second phase and involves neither land acquisition nor house demolition. Temporary land acquisition is required for pipeline construction, but the detailed area is unclear yet. The size and scope of the Project are shown in Table 1-1.

Size and scope of the Project Table 1-1 Impact of land Constructio No. Project Scope and size Owner acquisition n period

Zhaotong Bank protection, regulation of watercourses of Urban Acquisition of 107.62 Central city river including for the Liji River Construction mu of collective land, Feb. 48.162km, 17.935km all being farmland system and 30.227km for the Tuwei River system ; 2011 1 rehabilitation Investment involving the — project River dredging: for a length of 48.162km and a and Sep. 2012 quantity of work of 154,000m3 demolition of 134 Development houses Co., Ltd.

Construction of a 23km delivery pipeline (DN1400) from Yudong Reservoir to Taiping Acquisition of 106.7 Waterworks; Construction of Taiping Zhaotong mu of collective land, Northern area Waterworks with a near-term treatment capacity Water Supply all being farmland; Jan. of 50,000 m3/d and a long-term capacity of involving 36 mu of 2011 2 water supply and 100,000 m3/d; Construction of Qingmen and state-owned land — pipeline project Waterworks with a near-term treatment capacity Sewerage reserved for Jan. 2012 of 10,000 m3/d and a long-term capacity of Company construction, no 20,000 m3/d; Construction of a northern area house demolition distribution pipeline of 113.38KM

Northern area supporting sewer pipelines of Using the land Zhaotong reserved for Central city 61.507km; an old urban area sewage pipeline of 29.451 Expansion of former Zhaotong Water Supply construction already Jan. sewage treatment km; acquired by the 3 Sewage Treatment Plant, with a total floor area of and 2011— and intercepting sewage treatment 136.8 mu, expansion to the treatment capacity of Sewerage Jan. 2013 sewer project plant, involving no 20,000 m3/d in the near future using the oxidation Company ditch process land acquisition and house demolition

Natural and economic profile of the affected areas

1.3.1 Natural profile of the affected areas

A. Zhaotong Municipality Zhaotong, with high mountains and deep valleys, is located at the joint of Yuling Plateau and Sichuan Basin. Its terrain is high in southwest and low in northeast, belonging to the typical structural landform of a mountainous region. The average altitude here is 1,685m, of which the altitude in the place where the municipal government is located is 1,920m, the highest altitude is 4,040m (Yaoshan, Qiaojia County) and the lowest is 267m (Gunkan Dam, Shuifu County), so as to form the unique natural landcape and enchanting scenery including large hills, Huanglian River, Tongluo Dam, Xiaocao Dam, etc. Zhaotong is a region with the plateau monsoon three-dimensional climate, where subtropical belts and warm temperate belts coexist. The annual average temperature is 12.6 . The temperature in winter is low and the climate is cool in summer. Dry and wet seasons are clear. The annual average sunlight and rainfall are respectively 1,900h and 760mm. Rivers in this municipality all belong to the lower segment water system of Jinsha River. Less rivers flow into Jinsha River, in addition to which the rest all flow into Guan River via Sayu River and then merge into Jinsha River, including Jinsha River, Niulan River, Baishui River, Heng River, Sayu River, Luoyi River, Yili River, etc. With complicated terrain and diversified climate, Zhaotong is rich in organisms and mineral resources. There are 1,025 kinds of higher ligneous plants 151 (457) all over the municipality. Concerning minerals, there are 33 kinds of known ones and the reserves of 22 kinds have been proved, of which advantageous minerals are abundant in reserves and excellent in quality, including coal, sulfur, zinc, silver, magnesium, phosphate, silica, etc. B. Zhaoyang District As the location of the Zhaotong municipal government, Zhaoyang District is the center of politics, economy, culture and information of the whole municipality. Its terrain is high in west and low in east, with an average altitude of about 1,950m. Interwoven by hills and dams, the district with flat landform is a typical plateau lacustrine deposit basin. The center city of Zhaotong is located in the middle of the dam with an area of about 300km2, of which the area of center Zhaoyang is 22.5 km2. On the whole, the district is located in the warm temperate zone, belonging to the north-latitude plateau continental monsoon climate. The temperature is low in winter and the climate is cool in summer, with clear dry and wet seasons. The frost-free period all the year round is 220 days or so. The annual average temperature is 11.6 , of which the average ones in hottest July and coldest January are respectively 19.8

and 2 , and the active accumulated one all the year round is equal to or higher than 3,217 of 10 . The annual average sunshine duration is 1,902.02h, and the annual rainfall is 736.5mm. Main rivers in Zhaoyang District include Sayu River, Zhaolu River and their branch Liji River water system as well as Tuwei River water system. Originating from the Peach Garden in Ludian County, the main stream of Zhaolu River flows to the northwest end of the dam from its southwest end via Hulukou, and flows through four Townships and towns in the dam zone including Yongfeng, Mengquan, Tucheng and Jiufu. Being at least 2km from the city center, the main stream is 26km long with a runoff area of 370km2 and a river width of 15 to 20m. Branches of Zhaolu River at the right bank including Liji River water system and Tuwei River water system are located in the center district, of which Sayu River and Zhaolu River are suburb rivers, and Liji River and Tuwei River are main ones which cause flood damage in the district.

1.3.2 Socioeconomic profile of the affected areas

A. Zhaotong Municipality Being set up in 2001, Zhaotong Municipality administrates 1 district, 10 counties and 143 Townships as well as towns (sub-district offices) including Zhaoyang District, Ludian County, Qiaojia County, Yanjin County, Daguan County, Yongshan County, Suijiang County, Shuifu County, Zhenxiong County, Yiliang County, Weixin County, etc. In 2008, the total population in Zhaotong was 5,495 million, ranking third in the province. The agricultural population was about 5.0395 million, of which the population of 23 ethnic minorities including Miao, Yi, Hui, etc. was 547,300 in total. The natural population growth rate was 8.7‰. The GDP of the whole municipality reached 27.23 billion yuan, increasing by 11.1% and ranking 7th in the province. The local general budget revenue was 1.71 billion yuan, increasing by 32.9% and ranking 7th in the province. The general budget expenditure was 8.83 billion yuan, increasing by 40.03% and ranking 4th in the province. The rural per capita net income was 2,116 yuan, increasing by 24.2% and ranking 14th in the province. With a year-end urbanization rate of 17.7%, Zhaotong was one of the regions around the province to rapidly promote urbanization. B. Zhaoyang District Being set up in 2001, Zhaoyang District administrates 3 sub-district offices (Longquan, Taiping and Fenghuang), 3 towns (Yongfeng, Beizha and Jiupu), 14 Townships (Buga, Shouowang, Xiaolongdong, Panhe, Jing’an, Qinggangling, Sayu, Leju, Sujiayuan, Sujia, Dashanbao, Dazhaizi, Yanshan and Tianba), 129 village committees and 49 neighborhood committees. By the end of 2008, the total population in the district was 805,400, of which the

agricultural population was 680,500, the population of ethnic minorities was 131,800, and the natural population growth rate was 9‰. The GDP of the whole district accomplished 8.847 billion yuan, increasing by 10.5%. The per capita GDP in the whole district was 11,100 yuan, increasing by 11.4%. The local financial general budget revenue around the district was 0.301 billion yuan, increasing by 35.8%; and the local general budget expenditure was 1.12 billion yuan, increasing 39.5%. The year-end urbanization rate was 28.5%. The per capita disposable income of urban residents was 10,449 yuan and the rural per capita net income was 2,495 yuan, increasing by 12.56% and 23.8% respectively.

2. Impacts of the Project

2.1 Identification of the affected areas

2.1.1 Permanent land acquisition

Permanent land acquisition of the Project includes land ranges of river rehabilitation and establishment of Taiping/Jingmen Waterworks, pressurizing pump stations, etc. The range of impact due to land acquisition and demolition for the Project involves regions within the range of land acquisition and regions which cannot be restored due to the project construction has severe impact on production and lives of residents. The ranges of land acquisition and demolition for the subprojects of the Zhaotong Central City Environmental Construction Project have been preliminarily defined according to design results of the feasibility study report accomplished by Yunnan Institute of Design in November in 2009.

2.1.2 Temporary land acquisition during construction

Temporary land include producing as well as living zones and land occupying ranges of temporary roads for construction, waterlines of water supply factories, pollutant-intercepting pipe nets of sewage treatment factories, sludge drying factories, etc during the period of construction.

2.2 Impacts of the Project

In mid November in 2009, cooperating with a design organization, the owner spent more than 7 days in making an investigation item by item on major physical indicators including population affected by the Project, houses

and attachments, land, special facilities, etc according to the handling range of land acquisition for construction studied out preliminarily under the participation and cooperation of local governments at all levels, communities/administrative villages, villager team cadres and displaced persons. Land acquisition and demolition of the Project involves 1 district, 3 sub-districts, 3 Townships (towns), 18 communities and 4 administrative villages. The residential population affected by land acquisition and demolition is 5,760 from 1,281 households, of which 2,084 people out of 463 households are affected by permanent land acquisition, and 3,676 people out of 818 households by temporary land acquisition. Furthermore, the demolition of shops in the Project affects 195 people out of 65 households working for individual businesses, and the demolition of enterprises and public institutions affects 23 people out of 2 households. Permanent land acquisition was 250.32 mu including 36 mu previously acquisitioned state-owned land and temporary land acquisition was 985 mu. In addition, part of scattered fruit trees, less running water pipelines, high-voltage wires, temporary bridges, transformer substations, living facilities, etc are also affected. The demolition for construction in the Project affects 49 households of ethnic minorities, permanently collecting 12.24 mu of their farmland and affecting 436.8m² of their houses. See Table 2-1 for major physical indicators affected by demolition for construction.

Summary of Main Physical indicators for Project Impact Table 2-1 Area of Collective- Utilization Population affected by Population of house demolished owned Land of State- Temporary land acquisition and Farmland demolition various needed to owned Land house demolition No. Project houses be acquired Land Number Number Number of Number of of of 2 Mu Mu Mu Mu Households Households m People People Central City 1 River 1,192 5,149 134 604 10417.65 107.62 107.62 385 Management NorPtherjn Area 2 Water Supply 89 611 106.7 106.7 36 600 and Pipeline Project

2.2.1 project affected people

Population affected by the Project includes those involved in permanent/temporary land acquisition, house demolition, practitioners of individual businesses, enterprise staffs, etc. The total affected population is 5,760 people out of 1,281 households, of which the non-demolition population of land acquisition is 1,287 people out of 286 households, the population of house demolition without land acquisition is 603 people out of 134 households, the population of both demolition and land acquisition is 194 people out of 43 households, and the population affected by temporary land acquisition is about 818 households. 23 people out of 2 enterprises and public institutions and 195 people out of 65 individual businesses are affected (excluded in residential population).

Summary of subproject of main physical indicators affected by the Project Table 2-2 Population Urban Rural Population Land affected by Affected Affected Production residents of residents of affected by Affected acquisition both enterprises population in resettlemen demolition demolition temporary individual without demolition and public total t population without land without land land businesses demolition and land institutions acquisition acquisition acquisition acquisition No. Project

Affect Affect Affect Affect Hous Hous Hous Peopl Peopl House Peopl House Peopl Peopl ed ed ed ed People People ehold ehold ehold e e holds e holds e e numb popul house popul s s s er ation holds ation

Central City River rehabilitation 1 5,149 841 187 841 6 27 128 576 43 194 781 3,511 2 23 65 195 project

Northern Area Water Supply 2 611 446 99 446 37 165 and Pipeline Project

2.2.2 Permanent land acquisition

The Project needs to permanently occupy 250.32 mu of farmland involving two subprojects, of which the river rehabilitation project, Taiping Waterworks and pressurizing pump station will take some collective-owned land and Jingmen Waterworks will use previously requisitioned state-owned land. See Tables 2-3 and 2-4 for statistics of investigation results of permanent collective-owned land acquisition by projects and villages.

Statistics of collective-owned land acquisition for each subproject of the Project Table 2-3 Area of collective-owned land acquisition (mu) No. Project Total Farmland Irrigated land Dry land

(mu) (mu) Central City River 1 107.62 13.59 94.03 rehabilitation project Northern Area Water 2 Supply and Pipeline 106.7 106.7 Project

Statistics of land property of collective-owned land acquisition for each subproject of the Project Table 2-4 Sub- Farmland Projects district/ Community/Village Subtotal Irrigated Dry town land (mu) land (mu) (mu) Central City Fenghuang Nanwenquan 41.04 13.59 27.45 River Shizhahe 24.44 24.44 rehabilitation Taiping project Shuitangba 42.14 42.14 Northern Longquan Guanba 100.2 100.2 Area Water Supply and Pipeline Taiping Taiping 6.5 6.5 Project

2.2.3 Temporary land acquisition during construction

Temporary land acquisition during construction refers to the land temporarily borrowed during the construction period of the Project, which is mainly used for living zones, temporary roads for construction, water delivery

and pollutant-intercepting pipe nets, sludge drying factories, etc during construction. River rehabilitation, water supply and pipeline project and sewage treatment and intercepting sewer project all need temporary land acquisition in construction. The project at this stage will occupy 985 mu of land temporarily. The purposes of land use, requirements for land restoration, etc. will be defined in the contract agreement signed between the PMO and the contractor.

Statistics of land property for temporary land acquisition of the Project Table 2-5 Project Town (sub- Community Farmland district) (Village) Irrigated Dry Subtotal Land Land

mu mu mu Fenghuang Fenghuang 3.65 3.65 Fenghuang Xuezhuang 0.12 0.12 Fenghuang Heinidi 18 18 Fenghuang Nanwenquan 66.39 56.79 9.6 Fenghuang Mulu 19.9 19.9 Fenghuang Taoyuan 10.19 10.19 Central City Taiping Taiping 8.65 8.65 River Taiping Taiping 0.7 0.7 rehabilitation Taiping Shizhahe 11 11 project Taiping Shuitangba 18.69 18.69 Longquan Jizhong 12.84 12.84 Beizha Dengzi 49.62 49.62 Taiping Jingmen 7.1 7.1 Jiupu Tucheng 32.82 32.82

Beizha Beizha 3.84 3.84

Since the laying direction of the waterlines has not been Northern defined, the impact range of temporary land occupation Area Water cannot be determined at present. At the present stage, it is Supply and expected that pipeline network will temporarily occupy 600 mu Pipeline of land for the Northern Area Water Supply and Pipeline Project Project and 114.39mu for River rehabilitation.

Total 985mu

2.2.4 Demolition of houses and attachments

Only river rehabilitation in the Project involves house demolition. The area of houses which need to be demolished is 10,417.65m², including 10,417.65m² for private houses (private houses are classified into rural and urban ones according to the nature of land, of which 7,265.65m² for 577 rural residents out of 128 households and 723.8m² for 27 urban residents out of 6 households), 1,864.8m² for collective-owned houses and 563.4m² for

enterprises and public institutions. See Table 2-6 for impacts of house demolition on urban residents.

Impacts of house demolition on urban residents Table 2-6 Affected Private Houses Affected Impact number Project Sub-district Community number of Masonry- Masonry- Earth- Type of Subtotal households concrete timber timber people Central City River Non-local Fenghuang Yingfeng 6 27 723.8 648.8 75 rehabilitation relocation project

Impacts of house demolition on rural residents Table 2-7 Impact Numbe Project Sub- Number of Residential houses (m2) Type r of district affected affecte Earth- (Xiang, household Masonry- Masonry- Crud d Subtotal timber town) s concrete houses timber houses e people houses Central Non-local Fenghuan 3,976.4 86 387 3,029.21 208 394.04 345.2 City River relocation g 5 rehabilitatio Taiping 17 77 1,393 877 122 147 247 n project Jiupu 23 104 1,838.2 998.3 77.2 762.7 Beizha 2 9 58 58 7,265.6 Total 128 577 4,904.51 407.2 1,361.74 592.2 5

Demolished collective-owned houses affected by the Project Table 2-8

Collective-owned houses (m²) Sub- Commu Project District distri Masonr Maso nity Frame Earth- ct Subtotal y- nry- Crude houses timber concret timber e Central City Feng River Zhaoyang huan Ying 1,864.8 1,864.8 rehabilitation District g feng project

2.2.5 Individual businesses

The Project affects 65 individual businesses developed by hiring stores. The area of the business stores is 2,349.9m² in total, of which 485.1m² for enterprises and public institutions and 1,864.8m² is collective-owned for communities. See Table 2-9 for details of individual businesses.

Summary of individual businesses Table 2-9

Collective-owned Houses of enterprises Total houses and public institutions Project

Number Area (m²) Number Area (m²) Number Area (m²)

Central City River 65 2,349.9 29 1,864.8 36 485.1 rehabilitation

2.2.6 Organs, enterprises and public institutions

The subproject involving relocation of enterprises and public institutions is the Central City River rehabilitation project. According to the present investigation, 2 organs, enterprises and public institutions are involved. See Table 2-10 for details of organs, enterprises and public institutions. The floor area of the organs, enterprises and public institutions has been listed in houses affected by the project.

Organizations, enterprises and public institutions involved in the project Table 2-10 Impact Number Area (m²) Names of Nature of degree staffs No. organs organs Masonry- Masonry- Earth- Frame concrete timber timber Zhaotong Municipality Zhaoyang Complete 1 Enterprise 485.1 23 District demolition Diandongbei Big Market Zhaotong Water Municipality Public 2 78.3 pumping 297 No.1 Middle institution station School Note: Zhaotong Municipality No.1 Middle School only involves one water pumping station which is a single building far from the major one and cannot affect staffs.

2.2.7 Scattered trees

Scattered trees affected by the Project include not only various scattered fruit trees which need to be felled or transplanted due to land acquisition for project construction around houses as well as in farm fields, but also trees planted on acquired land. The Project affects 14,140 scattered trees in total, of which there were 6,334 fruit trees and 7,806 general trees. See Table 2-11 for details of the distribution.

Statistics of scattered fruit trees for the Project Table 2-11

Taiping Longquan Fenghuang Beizha No. Items Unit Total Sub- Sub- Sub-district Town district district I Fruit trees PCS (I) Class 1 PCS 3,781 2,562 682 202 335 (II) Class 2 PCS 788 500 288 95 Young (III) PCS 1,765 56 1,648 40 21 trees II Cash trees PCS Class 1 (I) wild PCS 1,930 1,094 815 21 peppers Class 2 (II) wild PCS 485 70 217 135 63 peppers Young wild (III) pepper PCS 250 250 trees Walnut (IV) PCS 48 37 5 4 2 trees (V) Cedrelas PCS 37 37 High III PCS forests (I) Willows PCS 3,237 2,631 62 544 Poplar (II) PCS 1,712 150 1,515 47 trees Bamboo (III) m2 12 12 trees IV Total 14,140 4,768 7,801 490 1,080

2.2.8 Special facilities

Special facilities affected by the Project include telecommunications, broadcasting, power circuits, etc, which will be protected or restored during the construction. See Table 2-12 for details of special facilities affected by the Project.

Statistics of living facilities affected by the Project Table 2-12 No. Items Unit Total Fenghuang Taiping 1 Power lines m 460 460 2 Telecom m 200 200 optical

cables 3 Broadcasting m 300 300 optical cables

2.2.9 Affected living facilities

Living facilities affected by the Project include running water pipes, transformers, temporary bridges, etc. Statistics of living facilities affected by the Project Table 2-13 Sub-district Names of the Project Unit Number (Xiang, town) facilities Water pipes M 150 Transformers PCS 2 River Taiping Temporary PCS 3 rehabilitation bridges project Garbage stations m2 160 Temporary Shouwang PCS 2 bridges

2.2.10 Overview and distribution of affected ethnic minorities

Land acquisition for project construction affects 221 people out of 49 households from ethnic minorities, accounting for 4.3% of the affected population.12.24 mu of farmland of the ethnic minorities are permanently acquired, affecting 436.8m² of their houses. See Table 2-14 for details of the affected ethnic minorities. There are 20 Xiang and town offices in Zhaoyang District, including 4 minority towns (Buga Hui people town, Shouwang Hui people town, Xiaolongdong Hui people town and Qinggangling Hui people town) and 22 minority villages, of which there are 17 minority towns and 5 non-minority towns. Major ethnic minorities in the whole district include Hui, Yi and Miao. The total population around the district is 805,400, of which 131,800 ethnic minorities (102,218 Hui people, 200,28 Yi people, 6,779 Miao people and 1,442 other minorities), accounting for 16.38% of the total population. Although distributed in 20 rural town offices, the ethnic minorities mainly reside in 42 village committees and 242 natural villages (settlement sites). 10% of the ethnic minorities reside in dam areas, 2.1% reside along rivers and

valleys, and 87.9% in mid-levels and high-chillness Liangshan Mountain. They reside in a scattered manner with Han people, presenting a pattern of large mixed distribution and small settlement.

Ethnic minorities affected by the Project Table 2-14 Land Statistics Proportion House Parts of the ethnic acquisition of Scale of of of demolition Scale of land Affected minorities ethnic No. Projects house population population of ethnic acquisition population minorities demolition from ethnic from ethnic minorities Irrigated Dry minorities Hui people Yi people minorities (m²) land land Farmland acquisition: Area of Central City 107.62 mu; house River 1 Temporary demolition 5,149 221 158 32 4.3% 8.86 3.38 436.8 rehabilitation land 10,417.65 project occupation: m² 502.41 mu Farmland acquisition: 103.5 mu; Northern Area Construction Water Supply No house 2 land 446 Null and Pipeline demolition acquisition for Project state-owned reserves: 36 mu

2.2.11 The Vulnerable Groups

Land acquisition for project construction affects 221 people from ethnic minorities. It is learnt through investigation that the per capita annual net income of the population affected by the Project is about more than 2,000 yuan, which makes no difference compared with Han people residing here and does not belong to the population below the poverty line. The Project affects 28 vulnerable groups including households receiving minimum living security, disabled people, single-parent households, etc, which are given special consideration during the resettlement. See Table 2-15 for details of vulnerable groups.

Vulnerable groups affected by the Project Table 2-15 Names of the Sub-districts Communities householders Remarks Zhang Guangxian With a psychotic patient Zhao Yongqing Disabled Household receiving Wang Guanyun minimum living security Single-parent household Zhang Zelan receiving minimum living security Household receiving Yang Xingfen minimum living security Single-parent household Wang receiving minimum living Yingchang security Household receiving Longquan Sub- Guanba Hu Shiyun minimum living security in district Community hardship Household receiving Liu Shangbing minimum living security in hardship Pan Anfen With a psychotic patient Qian Yingfen With a psychotic patient Single-parent household in Kang Xulan hardship With a disabled family Xiang Guizhen member With a disabled family Zhou Minglan member Disabled household in Cheng Guoying hardship Taiping Sub- Household receiving district Fuqiang Chen Huawan minimum living security Household receiving Shizhahe Li Chunming minimum living security Household receiving Taiping Chen Shishun minimum living security Household receiving Liu Yuanzhong minimum living security Household receiving Liu Mingxue minimum living security

Household receiving Zhu Weiyou minimum living security Household receiving Xia Chuanjin minimum living security Household receiving Yang Derong minimum living security The householder’s wife and Cui Wende son are disabled Fenghuang The householder and his/her Fenghuang Community Guo Shican son are disabled Sub-district Li Shifeng The householder is disabled Zhou Shifu The householder is disabled Heinidi Household receiving Community Yuan Shunfa minimum living security

2.3 Impact relief measures

The construction of the project will involve land acquisition, house demolition and resettlement, and will inevitably affect the original production and living conditions of the local residents. At the planning and design stage of the project, when the optimization and comparison of the scheme are carried out, the impacts of the project construction on the local social economy should be considered as many as possible, which will be adopted as the key factor for scheme optimization and comparison. In order to reduce land acquisition and resettlement as much as possibly, the design agency and the owner have actively taken some effective measures. For example, in the aspects of scheme selection and arrangements related to other attachments, residential areas are avoided as many as possible, less farming land are occupied, and the opinions of local planning and local government are met. (1) Under the same conditions, the site selection of facilities for river rehabilitation, sludge drying factories, water supply factories, sewage treatment factories and pressurizing pump stations avoids house demolition or affecting lives of the surrounding villagers as much as possible. For example, the river rehabilitation project is undertaken according to the original design scheme, and a large amount of house demolition is involved in the city section of Zhonggou River, which will affect numerous residents, enterprises and public institutions, and individual businesses along the river. Therefore, the resettlement working group, the PMO and the owner plan to slightly regulate the boundary of the affected range of the project on the basis of negotiating with the feasibility study unit, and use the wider river at one side of the road as the temporary construction space, so as to avoid house demolition as far as possible. (2) Under the same conditions, the site selection of facilities for river rehabilitation, sludge drying factories, water supply factories, sewage treatment factories, and pressurizing pump stations avoids or occupies less farmland as far as possible. For example, concerning the laying of pipe

networks in water supply factories and sewage treatment factories, as shown in the site survey and research by the design agency, most of water discharge pipelines are recommended to be embedded along roads or wasteland, and exposed pipes are avoided to be laid. At the same time, surface restoration is taken into consideration after the pipeline construction, so that the requirements of project design are satisfied, and the damage to crops due to permanent farmland acquisition of the local residents is avoided. In the sediment dredging project of the river rehabilitation subproject, land is temporarily occupied for sludge drying factories. As the river rehabilitation project needs to be carried out in two years by sections, experts of the World Bank and the resettlement working group suggest temporary land acquisition of the sludge drying factories be carried out by time section with land acquisition particularly when needed. This suggestion is unanimously accepted by the PMO, the owner and the design agency, and land acquisition for sludge drying factories is undertaken according to the scheme. (3) Attach great importance to environmental protection and avoid environmental sensitive areas including water source areas, schools, hospitals, cultural relics, historic sites, scenic spots, etc. The factory sites should not pollute the surrounding environment or the pollution should not exceed the allowed range of the national relevant laws and regulations as well as existing standards. During the site selection, the downwind direction of the leading wind direction is taken into account, which has a safe distance from the residential areas. (4) Inconvenience brought by the project construction to daily lives of the local residents is taken into full consideration in the design. For example, the pedestrian passageway is set up in the relatively concentrated lots, so as to be convenient for the passing of residents; bridges, pipelines and other infrastructures which are damaged in the project construction will be restored in construction so as to ensure their completeness and normal use. (5) Optimize the construction design, shorten the construction period, reduce great filling and great digging as far as possible, and reasonably arrange special reconstruction as well as the construction time period, so as to reduce the impact of the project construction on the local society. For example, house demolition and reconstruction are generally carried out in slack farming seasons, and land acquisition is generally carried out after the harvest of young crops. The construction of bridges is completed before spring ploughing, which is helpful for farmland irrigation, drainage and flood prevention.

2.4 Resettlement plan

In accordance with the policy requirements for security guarantee of the domestic capital construction procedure and the World Bank, the resettlement

plan of the Project is carried out, and the resettlement action plan report is compiled. During the compilation of the report, work is initiated according to land acquisition for construction range determined by the design achievements at the present stage of the owner and the design agency. In order to accurately and objectively compile the report, we conduct wide social economical investigations in areas affected by the Project. The social economical investigation adopts the following two methods: one is structured questionnaire, and the other is in-depth open-ended interview with affected enterprises, business units, communities and families by the investigation team. Through the structured questionnaire, the team mainly collects information about the building acquisition of the affected units and families, land acquisition, development of the enterprises and public institutions, and social economy of the families. The investigation principle lies in that the physical acquisition questionnaire must be filled involving units and families for land, houses, and other ground attachments. Mainly including small FGD and door-to-door interview, the open-ended interview is carried out by persons with rich experiences in resettlement from the SUY project team and the project office for organizing community representatives in areas with concentrated affected population or representative areas affected by the project to learn about the economic development of the local society and collect opinions as well as requirements of the local people for the resettlement work. The focus group representatives include not only people from different economic-level families and different affected families, but also affected people of different genders. Through the social economic investigation, policies and regulations of the state, Yunnan Province and Zhaotong Municipality are comprehensively collected, learnt and grasped relating to the Project construction and resettlement work, providing legal basis for formulating policies of the Project resettlement. Comprehensive and accurate basic data are collected for land acquisition and house demolition of the project, providing full and accurate materials for compiling the Resettlement Action Plan. Opinions and requirements of the affected people for land acquisition and house demolition are learnt, leading the resettlement policies to be more operational and favorable to public opinions. In addition, the importance and practical significance of the Project are widely publicized so as to promote the understanding of the local people in the Project areas and their supporting for the Project construction.

3. Legal and Policy Framework for Resettlement The RAP of the Project will be prepared and implemented in strict conformity with the applicable laws and regulations of the People’s Republic of China and Yunnan Province, and the World Bank operational policy OP4.12. The land acquisition, house demolition and resettlement work of the Project will be implemented in strict conformity with the compensation rates and relevant policies in this RAP. In case of any change during implementation, the construction agency will submit a corresponding special report to the World Bank for approval before implementation. The main legal framework is as follows: Policy document Effective date (1) Pertinent provisions of the Land Management Revised and Law of the People’s Republic of China adopted on August 28, 2004 (2) Rules for the Implementation of the Land February 1991 Management Law of the People’s Republic of China (3) Regulations on the Administration of Urban November 1,2001 House Demolition (4) Pertinent provisions of the Interim Regulations on Farmland Occupation of the People’s Republic of Promulgated on China (State Council Guo Fa (1987) No.27 “Circular of April 1, 1987 the State Council on Promulgation”) (5) Circular of the Ministry of Finance, the Ministry of Land and Resources, and the People’s Bank of State level Effective from China on Adjusting Policies for Compensated Use of January 1, 2007 Additional Land for Construction (Cai Zong [2006] No.48) (6) Regulations on Promulgating Specific Policies Promulgated on for Farmland Occupation Tax (Cai Nong Zi [1987] June 25, 1987 No.206) (7) Decision of the State Council on Deepening Reform and Exercising Strict Land Administration (Guo October 21, 2004 Fa [2004] No.28) (8) Circular on Issuing the Guidelines on Improving November 3, the Compensation and Resettlement System for Land 2004 Acquisition (LR Issue [2004] No.238) (9) Pertinent provisions of the Property Law October 1, 2007 (10) Rules for the Implementation of the Interim Regulations of the People’s Republic of China on effective from Farmland Occupation Tax (State Administration of January 1, 2008 Taxation Decree No.49)

Province (11) Regulations of Yunnan Province on Land September 24, level Administration 1999

(12) Regulations of Yunnan Province on Urban House Demolition (Decree No.109 of the Zhaoyang April 26, 2002 District People’s Government, Yunnan Province); (13) Uniform Annual Output Value Standard for Land Acquisition and Regional Integrated Land July 1, 2009 Compensation Rates of Yunnan Province (Interim)

(14) Procedures of Zhaotong Municipality for Compensation and Resettlement for Land for March 31, 2004 Construction in the Urban Planning Area (Zhao Zheng Zhaotong Fa [2004] No.39) Municipality (15) Interim Procedures for Compensation and Resettlement for House Demolition of Zhaotong October 30, 2008 Central City (Zhao Jian Guan [2008] No.3)

(16) Circular of the Zhaoyang District People’s Government, Zhaotong Municipality on Issuing the Implementation Plan of Resettlement and March 12, 2009 Compensation for House Demolition for the Construction of the North Along-the-city Extension Line (Zhao Qu Zheng Fa [2009] No.15) (17) Reply of the Zhaoyang District People’s Government, Zhaotong Municipality to the Request for Instructions on the Implementation Plan of September 22, Resettlement and Compensation for House Demolition 2008 for Taiping Sub-district Office, Northern New Area, Zhaotong Central City (Zhao Qu Zheng Fa [2008] No.30) (18) Reply of the Zhaoyang District People’s Zhaoyang Government, Zhaotong Municipality on the District Implementation Plan of Resettlement and December 30, Compensation for House Demolition for Southern 2008 Area, Zhaotong Central City (Zhao Qu Zheng Fa [2008] No.49) (19) Reply of the Zhaoyang District People’s Government, Zhaotong Municipality on the Implementation Plan for Compensation for Demolished March 18, 2009 Houses and Resettlement of Land-expropriated Farmers in the Longquan Area, Zhaotong Central City (Zhao Qu Zheng Fa [2009] No.4) (20) Implementation Plan for Compensation for Demolished Houses and Resettlement of the November 16, Zhaoyang District People’s Government for the Class 2009 B Improvement Project (Zhao Qu Zheng Fa [2009] No.33)

(21) Operational Policy OP4.12 Involuntary January 1, 2002 Resettlement and appendixes thereto World Bank (22) Operational Procedure BP4.12 Involuntary January 1, 2002 Resettlement and appendixes thereto

According to the above policy framework, the goal of the resettlement policy of the Project is to minimize the negative impacts arising from land acquisition and house demolition. Properties of those negatively affected should be compensated for at the replacement cost, and assistance offered so that they have sufficient opportunities to exceed or at least restore the former standard of living. The main policy principles embodied in the policy framework are: (1) Measures should be taken where possible to minimize the negative impacts on displaced persons; (2) Compensation and resettlement programs can improve the standard of living of displaced persons or restore it to pre-displacement levels; (3) Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs; (4) All affected properties should be compensated for at the replacement cost; (5) The principle of construction before demolition should apply. Displaced persons should have obtained all compensation fees before land acquisition and house demolition, i.e., acquisition of land and relevant properties can only be conducted after compensation fees or a resettlement site and a moving subsidy have been provided; (6) The borrower should raise resettlement and compensation fees, including contingency costs for resettlement; (7) Identification of eligibility: The deadline of eligibility identification is the date of publication of the notice of land acquisition and house demolition. After this date, displaced persons may not build, expand or rebuild any house; not alter the intended use of any house or land; and not rent land or rent or sell any house. Population influx after this date will not be eligible for compensation; and (8) House compensation fees should be based on the replacement cost.

4. Compensation Rates According to the regulations of the existing legal framework, and combining the actual situation of areas affected by the Project, various compensation rates of the Project are stipulated. The time rate for resettlement qualification recognition is the release date of the announcement for land acquisition and house demolition. After the date, displaced persons should not newly build, extend or rebuild houses; should not alter the use of the houses or land; should not lease the land and lease or buy/ sell the houses. In addition, the later flocked people after the date should not be qualified for the resettlement compensation.

4.1 Compensation rates for land acquisition and occupation

4.1.1 Compensation rates for acquisition of collective land

In accordance with the Land Management Law of the People’s Republic of China, the Guidelines on Improving the Compensation and Resettlement System for Land Acquisition, the Regulations of Yunnan Province on Land Administration, and relevant policies as well as regulations of the affected urban areas, the compensation fees for land acquisition include land compensation fees, resettlement compensation fees and young crop compensation fees. The compensation rates for land acquisition of the Project are formulated and enacted on the basis of fully considering the Uniform Annual Output Value Standard for Land Acquisition and Regional Integrated Land Compensation Rates of Yunnan Province (Interim) implemented by the Department of Land and Resources of Yunnan Province and fully listening to opinions of related parties (particularly farmers) to comprehensively designate the areas and evaluate the land price according to the need of collective- owned land acquisition for town construction, different lots of farmland for acquisition, land use types, land capability, per capita area of farmland and the economic development level, stipulating on the basis of the established compensation rates for acquisition of various sub-district offices approved and forwarded by the Zhaoyang District People’s Government, Zhaotong Municipality. Therefore, the compensation rates vary in various districts.

Summary of compensation rates for acquisition of various land

Table 4-1 Compensation rates (yuan/mu) Sub-district Land Land Resettlement Young Remarks town types compensation compensation crop Total fees fees fees Irrigated Integrated 26,800 40,200 1,150 68,150 land area price Longquan Dry Integrated 26,800 40,200 1,150 68,150 land area price Irrigated Integrated 23,200 34,800 1,000 59,000 land area price Taiping Dry Integrated 23,200 34,800 1,000 59,000 land area price Irrigated Integrated 28,000 42,000 1,300 71,300 land area price Fenghuang Dry Integrated 28,000 42,000 1,300 71,300 land area price

4.1.2 Compensation rates for use of state-owned land

During the Northern Area Water Supply and Pipeline Project, the acquisition of newly built Qingmen waterworks involves state-owned reserve land. The land is used by adopting the way of allocation for project delivery. As the land is still cultivated by farmers, the young crop fees are needed for compensation. The compensation rates are implemented according to the sub-district rates, and the resettlement spots are planned to be built for proper resettlement of the farmers who will lose more than half of their land in the community.

4.1.3 Compensation rates for temporary land occupation

during construction

The three subprojects of the Project—the river rehabilitation project, the northern area water supply and pipeline project, and the sewage treatment and pipe network project all involve temporary land occupation during construction. The temporary land occupation unit applies for temporary land occupation, negotiates according to the following guideline compensation rates, signs agreements for temporary land occupation, applies for quantity and time limit of temporary land occupation to the Land and Resources Department of the Xiang (town) or office, and reports to the Land Department for approval and use. The second ploughing of temporary land occupation can

be carried out by farmers themselves who cultivate the land or by the construction agency and can be delivered to the farmers. The guideline compensation rates for temporary land occupation are as follows: Temporary land occupation for construction: 1,500 yuan is compensated per mu and per year, and 5,000 yuan per mu of second ploughing fees is paid in one time. Land which cannot be ploughed for the second time is calculated according to the compensation rates of permanent land occupation. According to the time and features of land occupation, one year is set for temporary land occupation of the three subprojects. See the Framework of Compensation and Resettlement Policies for Temporary Land Acquisition for the overall compensation rates of temporary land occupation.

4.2 Compensation rates for demolished houses and attachments

In the subprojects of the Project, demolished houses include private ones, houses of enterprises and public institutions, and collective-owned ones. According to the nature of land, private houses include rural and urban ones. The town demolished houses which are affected by the Project are evaluated by the real state appraisal agency with legal qualification, and calculated according to the house replacement price. For rural houses which need demolition, the relocator should make currency compensations or rebuild in the unified planning lots, which are two ways for selection of the displaced persons. Transition houses of the displaced persons need to be settled by themselves. The relocator makes compensations for the displaced persons according to the following provisions: (1) 1,000 yuan per household is made in one time for house-moving subsidy. (2) 6.8 yuan/m² per month is paid for the transition subsidy for the displaced persons, and the transition compensation is made by actual calculation of the self-built houses from the agreement signing date to the time before land designation. From the data of land designation, the transition subsidy for three months is increased; the subsidy for three months is made for the displaced persons in one time in terms of currency compensation; and suspension compensation for business houses is made for the displaced persons in one time according to the actual rent level in the same lot.

Summary of compensation rates for rural house demolition Table 4-2 Unit: yuan/m²

Unit price No. Structure Category (yuan/m2)

1 Frame 736.00 Masonry- 2 673.00 concrete 3 Stone- 570.00 4 concrete Four-corner chopped stones 590.00

5 Masonry- Brick walls, tile roofs 480.00 6 timber Brick walls, asbestos tile roofs 420.00 7 Stone walls, tile roofs 430.00 Stone walls, tile roofs, four-corner 8 450.00 Stone- chopped stones timber Stone walls, asbestos tile roofs (or 9 330.00 asphalt felt roofs) 10 Stone walls, grass roofs 390 11 Earth walls, tile roofs 370.00 Earth walls, tile roofs, four-corner brick 12 380.00 columns (or stone columns) Earth walls, tile roofs, storefront brick 13 385.00 Earth- walls timber 14 Earth walls, concrete roofs 390.00 15 Earth walls, asbestos tile roofs 210.00 16 Earth walls, grass roofs 270.00 17 Crude houses 100.00

The project involves a small amount of urban house demolition, including private houses, collective-owned houses and houses for enterprises and public institutions. These houses may be paid 2800 yuan/ m²(including 1000 yuan/ m² for house,1800 yuan/ m² for the land on which the house built ).

Summary of compensation rates for urban houses affected by the Project Table 4-3

Householder Sub-district Community House Nature House House Business structure area industry Ao Jingde Fenghuang Yingfeng Housing Frame 83.8 Family Li Shicheng Fenghuang Yingfeng Housing/restaurant Frame 117 hotel Kong Fenghuang Yingfeng Housing Frame 150 Xiangdui Ma Fenghuang Yingfeng Housing/restaurant Frame 118 Restaurant Guangcai Grocery Yang Jiacen Fenghuang Yingfeng Housing/restaurant Frame 70 store Liang Ming Fenghuang Yingfeng Housing Frame 110

4.3 Compensation rates for scattered trees

Summary of compensation unit price for scattered trees Table 4-4 Unit Price

Category Names Adult Remarks trees Young trees I II Apple 1. Apple trees with the diameter (at 20cm 90 50 15 trees high above the ground) of more than Peach 10cm (including 10cm) are I-class adult 50 10 trees trees, with the diameter of 5 to 10cm Pear trees 50 10 (including 5cm) is II-class adult trees, and with the diameter of less than 5cm Fruit Cherry 50 10 are young trees. trees trees 2. Walnut trees with the diameter of more Apricot 40 10 than 30cm (including 30 cm) are I-class trees adult trees, with the diameter of 10 to Grape 35 25 5 30cm (including 10cm) are II-class adult trees trees, and with the diameter of less than Other 20 5 10cm are young trees. 3. Chestnut trees with the diameter of Cash Walnut 90 50 5 more than 20cm (including 20cm) are I- trees trees class adult trees, with the diameter of 10 Chestnut 80 40 5 to 20cm (including 10cm) are II-class trees adult trees, and with the diameter of less Other 20 2 than 10cm are young trees. Cedrela 4. Wild pepper trees with the diameter of 20 2 trees more than 5cm (including 5cm) are adult trees, and with the diameter of less than Palm trees 20 2 5cm are young trees.

Wild 5. Fruit seedlings: compensation is made pepper 10 2 for only 70 trees if over 70 trees are trees survived per mu (compensation is made Other 20 2 according to young trees), and compensation is made according to the Pine trees 5 1 actual number if less than 70 trees are survived. If trees are planted in planting Cypress 5 1 season but not survived, compensation trees is made for 0.5 yuan per tree, Phoenix 5 1 (compensation is made for only 70 trees trees if there are over 70 trees). White 6. Cash trees except the walnut trees, poplar 5 1 chestnut trees and wild pepper trees, trees with the diameter of more than 10cm Fir trees 5 1 (including 10cm) are adult trees, and Timber Bamboo with the diameter of less than 10cm are 8 yuan/m2 forests trees young trees. 7. Timber forest with the diameter of more than 10cm (including 10cm) are adult trees, and with the diameter of less than 10cm are young trees; only cutting fees are compensated. Other 3 1 8. No compensation will be made for trees planted in short time before the investigation to gain the compensation fees by cheating. Other unlisted trees are compensated according to the preceding provisions.

4.4 Compensation rates for organs, enterprises and

public institutions

According to the boundary range of the project design, the river rehabilitation project involves house demolition of four public institutions and four enterprises. As the enterprises and public institutions built a large quantity of houses along rivers, including offices and residential houses, the house demolition will involve huge house area and affect numerous people. Therefore, the resettlement work team and the owner negotiate with the design agency, planning to regulate the boundary range so as to avoid house demolition as far as possible. Seen from the tentative regulated boundary range, the inevitable house demolition involves only partial houses of the big market in northeastern Yunnan and a pumping station at the Zhaotong Municipality No. 1 Middle School. The compensation amount for the two sites is determined by negotiation of both the owner and the demolished unit, and is subject to the Agreement signed by the two parties.

4.5 Compensation rates for individual businesses

The compensation rates for individual businesses include house property compensation for self-owned shops, moving subsidy and suspension loss fees. Among the affected individual businesses, there are three mixed type of residential houses (included into urban residents and not calculated later), and 65 leased houses for shops; the leased houses are collective-owned ones and for commercial use by enterprises and public institutions. These houses are calculated into the total area of residential ones, collective-owned ones and those of the enterprises and the public institutions. Compensations are made according to the replacement price or evaluation in terms of different natures. The house demolition compensation is paid to the owners, and individual businesses of self-owned shops as well as leased shops can obtain the moving subsidy and suspension loss fees. According to the local practices for land acquisition and demolition, individual businesses can obtain 1,000 yuan/per unit for the moving subsidy besides house compensation, the suspension loss fees are compensated according to the rent price of neighboring lots, and compensation is made for three months per household. Moreover, owing to different decoration, area, lot, orientation, business industries, etc the houses, compensation varies among the households. Specified compensation rates can be negotiated between the owner and the affected businesses. Among the 65 individual businesses that rent a store affected by the Project, 29 rent a collective house in Yingfeng Community, Fenghuang Sub- district, and the other 36 rent the house in the Northeast Yunnan Hypermarket (a public institution under the administration for industry and commerce). In order to make up the rental income losses of Yingfeng Community and the Northeast Yunnan Hypermarket arising from house demolition, they will be compensated the prevailing monthly rental income for the moment. The specific compensation period and rate will be subject to the compensation agreements between the owner and Yingfeng Community and the Northeast Yunnan Hypermarket.

5. Restoration and Resettlement Plans

The provincial PMO, Coordinating and Leading Group of Foreign Funded Projects of Zhaoyang District, Management Office of Foreign Funded Projects, owners of various subprojects, People’s Governments at all levels involved in the Project and CCCC jointly form the resettlement work team and carry on the resettlement planning work for the Project according to the present policies, laws, regulations and requirements of the World Bank for the resettlement on the basis of the resettlement planning scheme put forward by the affected districts, towns and villages. The resettlement goal of the Project is to ensure that displaced people can obtain compensations for their complete losses and gain reasonable resettlement as well as restoration, to let them share benefits of the Project, to provide subsidies for their temporary difficulties, to improve their income level as well as living standards, and enhance the production as well as profit- making capabilities of enterprises, or at least to restore them to the high level before the relocation or the Project initiation.

5.1 Objectives and tasks of resettlement

5.1.1 Objectives of resettlement

The general goals of the resettlement are as follows: to make reasonable compensations and proper resettlement for the project impacts, and to ensure the producing as well as living standards of the affected population can be improved after the resettlement or at least not lower than the original level. According to the actual living standard in 2006 for resettlement, and combining the 11th Five-Year Plan of national economy as well as social development around various counties (districts) with the long-term goals of 2015, the goals of the resettlement are analyzed and defined as follows: (1) To basically ensure the food self-support and improve the yield of land by fully developing their potentials in areas with less farming land through agricultural restructuring. (2) To actively take measures to ensure the household’s per capita net income can be gradually restored to the level before the resettlement. (3) To improve public infrastructures, schools, hospitals, social welfare level, natural environment and transportation compared with them before the resettlement.

5.1.2 Tasks of resettlement

According to the investigation statistics, 2,084 people out of 463 households need resettlement, in which 1,287 people out of 286 households will be affected by land acquisition only, 603 people out of 134 households by house demolition only, and 194 people out of 43 households by both land acquisition and house demolition.

5.2 Compensation and resettlement for permanent land occupation

214.12 mu of collective-owned land is involved in the acquisition, and 1,481 people out of 329 households are affected by land acquisition, in which 1,287 people out of 286 households will be affected by land acquisition only, and 194 people out of 43 households by both land acquisition and house demolition.

5.2.1 Impact analysis of land acquisition

The contractual land acquisition of the Project affects 11 villager teams out of 5 communities in 3 sub-districts. In order to analyze the impact of land acquisition on the local villager teams, the PMO organizes relevant personnel to make deep investigation on the existing land resources of the affected sub- districts, communities and village teams, and make careful analysis on the affected degree of the village teams according to physical indicators of the project impact. Please see Table 5-1 for details.

Impact analysis for land acquisition of the Project by village teams Table 5-1 Per capita Farmland Per capita cultivated Total for cultivated Proportion Agricultur land Sub- Villager area of acquisition land after of Community al before district team farmlan and acquisition acquisition population acquisition d (mu) occupation (mu/person % (mu/perso (mu) ) n) Longqua Guanba Team 11 570 302 100.2 0.53 0.35 33.18 n Team 4 376 330 20.85 0.88 0.82 6.32 Fenghua Nanwenqu Team 5 330 200 20.19 0.61 0.54 10.1 ng an Team 5 491 360 7.06 0.73 0.72 1.96 Team 6 488 326 6.85 0.67 0.65 2.1 Commune 661 250 7.8 0.38 0.37 3.12 Shuitangba 1 Commune 842 517 8.6 0.61 0.6 1.66 2 Commune 536 320 1.7 0.60 0.59 0.53 Shuiping 2 Taiping Commune 517 335 1.6 0.65 0.64 0.48 3 Commune 454 469 5.8 1.03 1.02 1.24 4 Shizhahe Commune 336 379 8.26 1.13 1.10 2.18 5

As the nature of the Project is river rehabilitation, water supply project or sewage treatment, the river rehabilitationis a linear project with small impact range. Land acquisition for Taiping and Qingmen waterworks is relatively concentrated. According to the analysis of the villager teams, among the 11 villager teams affected by the contractual land acquisition of the Project, the proportion of impact by land acquisition on 9 villager teams is lower than 10%, and the land acquisition affects little on the agricultural production of these villager teams. The impact of land acquisition on other 2 villager teams is higher than 10%, among which the impact of land acquisition on Guanba Team 11 is higher than 30%, being the one affected most seriously. According to regulations of the Reply of the Zhaoyang District People’s Government, Zhaotong Municipality on the Implementation Plan for Compensation for Demolished Houses and Resettlement of Land-expropriated Farmers in the Longquan Area, Zhaotong Central City (Government Reply in Zhaoyang District No.4 [2009]), resettlement spots are planned to be built for proper resettlement of farmers who will lose over half of their land in the community. For the farmers who lose their land, residential land will be allocated for their

resettlement in one time; in addition, when houses are built in the resettlement spots, financial institutions will be coordinated for credit support; people who meet the requirements will be included and considered as households receiving minimum living security, and can enjoy the preferential policies of reemployment in state-owned as well as collective-owned enterprises for laid- off workers; and farmers who lose their land will be preferentially accepted during employment in the planning areas. These measures will greatly reduce the impact of land acquisition on the villager teams. It is analyzed that the impact of land acquisition on a majority of villager teams is weak and the impact can be reduced to the minimum extent by formulating feasible resettlement schemes.

5.2.2 General resettlement plan

The resettlement team holds FGD to negotiate resettlement plans respectively in the involved sub-districts/Townships and communities/villages during the project impact survey and resettlement planning. Cadres in districts, sub-districts/Townships and communities/villages, displaced persons and some villager representatives participate into the FGD. The resettlement plans of all villages are approved by the local government and displaced households. Based on the analysis of project impact and land acquisition impact in villages, all the displaced persons are resettled in the community so as to maintain their original ways of living and production. Meanwhile, their original social relations cannot be affected. Resettlement teams of the villages analyze the geographical positions, land resource owning amount and the income composition of local residents, respect choices of most displaced persons on the basis of asking them as well as villager representatives for opinions, and specifically adopt direct compensation by cash or other production restoring measures to formulate the practical as well as feasible resettlement and production restoring plan for each village together with the local government. According to the relevant regulations in the 29th article of Regulations of Yunnan Province on Land Administration, in each item of compensation fee and resettlement subsidy of land acquisition, in addition that compensation fees for private attachments as well as young crops in the acquired land and resettlement subsidies for self-employed persons are paid for the owners, the rest fees are owned collectively by the land acquisition unit as a special fund used for developing production, arranging employment of surplus labor force, providing living subsidies for those who cannot be employed, facilitating the construction of farmland infrastructures including field roads, aqueducts, etc, and promoting other collective welfare undertakings.

According to the regulations as well as local realities and taking practices in other regions of Yunnan involved in the Project as references, the specific resettlement plan of the Project is formulated as follows: 1. Compensation and other fees for land acquisition and house demolition are paid for affected collectives or individuals by banks through resettlement offices in Townships and sub-districts offices. 2. Compensation fees for houses are paid before displaced persons start to build their houses 3. According to the actual situation of each villager team and willingness of the displaced persons, the displaced persons who are capable of giving up farm production and engaging in trading and are willing to accept cash compensation can obtain all resettlement subsidies and cash compensations for the acquired land.

5.2.3 Production and living resettlement plan

According to the key negotiation and analysis on seriously-affected (the impact of land acquisition is higher than 10% and the per capita cultivated land is less than 0.5 mu after the land acquisition or the displaced persons reply most on their land) Team 11 in Guanba Community and Team 5 in Nanwenquan Community, the production resettlement plan is described as follows: (1) Guanba community Guanba Community in Longquan sub-district is located in the suburb of Zhaotong and administrates 13 villager teams. By the end of 2008, the total population around the village was 7,266 people out of 2,003 households, cultivated land (completely dry land) occupied 4,092 mu and the per capita cultivated land occupied 0.58 mu. The total labor force around the village was 4,122 people, accounting for 56.7% of the total population. Secondary and tertiary industries became main parts of the total village economic income besides the traditional crop framing and animal husbandry. The crop farming and industry of the village respectively accounted for 40.1% and 24.2% of the total village income. According to statistics, the labor force working outside was 130 people, accounting for 3.1% of the total labor force around the village; and the working outside income was 0.93 million yuan, accounting for 10.72% of the total village economic income. The rural per capita net income of the village was 2,319 yuan by the end of 2008. Land acquisition project has more serious impact on Team 11 of the village. Taiping waterworks is located in Team 11 and the expected area of land acquisition is 100.2 mu. The per capita cultivated land is 0.53 mu before land acquisition and only 0.35 mu after that. Therefore, the land acquisition has more serious impact on farmer households.

But in the community, many villagers go into cities for business and working, so that farm households depend less on the land. In addition, as the village is under jurisdiction of the central city planning area, large-scale land acquisition and house demolition are about to start, and it is impossible to carry out land readjustment on farmers who have been involved in land acquisition. Therefore, based on opinions of displaced households, under group discussion of two committees in the community, currency compensation and centralized resettlement in the resettlement site are adopted for resettlement. Hence, land compensation fees, resettlement subsidies and young crop compensations are paid for the displaced persons in full amount according to policies; concerning land-expropriated farmers with the area of acquired land larger than 50% of that of cultivated land, the resettlement for them is carried out by villager teams. Namely, a resettlement site (300 mu) is constructed at the junction of Hanbang Road and the north extensions; the construction of the resettlement site considers not only the housing lives of displaced persons, but also their production; the first and second floors of each building in the resettlement site are planned as commercial land, so that the land-expropriated farmers can adopt the commercial land as business stores or rent them for income continuously. Meanwhile, it is suggested that the displaced persons be preferentially employed under equal conditions when labor force is required for engineering construction. It is learnt through investigation that the villager team is convenient in transportation, for it is close to the Zhaotong central city and next to Hanbang as well as Zhaoyi Roads, which provides convenience for villagers working and running businesses in the central city. Besides, the region is under jurisdiction of the central city planning area and large-scale city construction is about to be carried out, so that the villager team has wide industrial and commercial development prospects. Displaced persons affected by the Project not only can take their own business houses for business activities, but also can obtain large amount of job opportunities provided by city construction, so that their living standard is maintained not to be lowered due to land acquisition of the Project. (2) Nanwenquan Community Nanwenquan Community in Fenghuang Sub-district administrates 5 villager teams. At the end of 2008, the total population of the village was 3,287 people out of 549 households; cultivated land occupied 887 mu (wherein 827 mu dry land and 60 mu irrigated land), and the per capita cultivated land occupied 0.27 mu. The total labor force around the village was 1,287 people, accounting for 32.9% of the total population. Besides, the community is a village with Hui and Han people living together, of which the number of Hui people is 430, accounting for 13.08% of the total population. As the main parts of the total village economic income, the traditional crop farming and animal husbandry respectively account for 49.5% and 24.7% of the total income. Secondary and tertiary industries are also the main sources

of economic income of the community; building industry and catering industry account for 24.7% of the total village economic income; and the rural per capita net income of the village is 2,500 yuan. Land acquisition project has more serious impact on Team 5 in the village. The river rehabilitation project needs to acquire 20.19 mu cultivated land of the Team 5. The per capita cultivated land is 0.61 mu before land acquisition and 0.54 mu after that. House demolition and land acquisition of the Team 5 involve 6 Hui households. It is learnt through investigation that, Nanwenquan Community is located at the combination area of city and country of Zhaotong Municipality, and more villagers go into cities for working and business, so that they depend less on land. The amount of the per capita cultivated land of Team 5 is higher than that of the whole community; the per capita cultivated land after land acquisition still maintains more than 0.5 mu, so that the land acquisition project has less impact on the Team 5. Based on opinions of the displaced households, under group discussion of two committees in the community, currency compensation and centralized resettlement are adopted for resettlement. Therefore, land compensation fees, resettlement subsidies and young crop compensations are paid for displaced persons in full amount according to policies. It is suggested that the displaced persons be preferentially employed under equal conditions when labor force is required for engineering construction. Concerning Hui people or other farmer households involved in house demolition, their demolished houses are compensated at resettlement price and the displaced persons are resettled in the resettlement site in a unified manner by the community. The Hui people involved in house demolition may select collective resettlement or any other mode of resettlement on the basis of consultation, and will be resettled within their former communities in order to maintain their customs and social relations.

5.2.4 Endowment insurance for land-expropriated farmers

In order to solve the endowment insurance problem for land-expropriated farmers, maintain the lawful rights and interests of land-expropriated farmers, and ensure social stability, the Zhaoyang District Government plans to enact detailed rules for the implementation of policies on the endowment insurance for land-expropriated farmers soon in light of the Circular of the Yunnan Provincial People’s Government on Issuing the Interim Procedures of Yunnan Province for the Basic Endowment Insurance for Land-expropriated Farmers (YPG Fa [2008] No.226) and the Circular of the Zhaotong Municipal People’s Government on Issuing the Opinions of Zhaotong Municipality on the Implementation of the Basic Endowment Insurance for Land-expropriated Farmers (ZMG Fa [2009] No.49). An abstract of the implementation rules for

the endowment insurance for land-expropriated farmers drafted by the Zhaoyang District Government is as follows: 1. These Rules apply to the registered population within the administrative jurisdiction of Zhaoyang District entitled to contract rural collective land, whose land is acquired by the government in a unified manner after the effective date of these Rules resulting in loss of all or most of land (per capita arable area less than 0.3 mu after land acquisition), and attaining the age of 16 full years. 2. According to the requirements for building a unified urban and rural social security system, a basic endowment insurance system shall be established for land-expropriated farmers in the mode of co-funding by the individual, the collective and the government. Basic endowment insurance funds shall be managed under the pooling and personal accounts. The government subsidy shall be transferred to the pooling account at a time, while the personal payment and the collective subsidy transferred to the personal account at a time. 3. Basic endowment insurance funds shall be managed in a unified manner at the district level. 4. For those covering the basic endowment insurance, the age shall be based on the date of birth on the resident identity card, and the time of land acquisition based on the approval document of the land acquisition approving authority. Those covered by the basic endowment insurance for land-expropriated farmers shall file a written application in person on a voluntarily basis, and be subject to a preliminary examination by his/her villager (resident) team and village (neighborhood) committee. 7 days after publication, the village (neighborhood) committee or the villager (resident) congress shall hold discussions, nominate applicants for registration, and submit the list of applicants to the appropriate Xiang (town) office, land and resources department, agricultural department, and the labor and social security department for examination, and to the appropriate Xiang (town) people’s government or sub-district office for approval. With the approval and confirmation of the district land and resources branch, and the district personnel, and labor and social security bureaus, the insurance formalities shall be settled in the unit of village (neighborhood) committee. Those covering the basic endowment insurance must complete the insurance formalities within 12 months from the date of land acquisition, and their ages and payment rates shall be those upon land acquisition. 5. Basic endowment insurance funds shall be borne by the individual farmer, the rural collective and the district government jointly at certain proportions, and paid at a time. The total amount of funding shall be based on the rate of minimum living security for urban residents of the current year, taking into account an appropriate markup. The personal payment and the collective subsidy shall be 50% of the total amount of

funding, and the government subsidy 50%. After the personal payment and the collective subsidy have been paid up, the government will grant a subsidy. Land-expropriated farmers of 60 full years or less shall have a minimum payment term of 15 years; those above 60 but less than 70 full years shall have a payment term of 15 years, which shall be reduced by one year for every increment of one full year; those of 70 full years or more shall have a payment term of 5 years. Land-expropriated farmers of over 60 full years may also pay for 15 years at a time in order to receive higher endowment treatment. No tax (duty) shall be levied on basic endowment insurance funds. 6. The government subsidy shall be disbursed by the finance department from the collected special land acquisition funds at a time. During land acquisition, the government shall collect special basic endowment insurance premiums based on the land grade fixed by the state for use as the basic endowment insurance for land-expropriated farmers. 7. Upon land acquisition, basic endowment insurance premiums shall be calculated according to law as part of farmland acquisition fees, and the land acquisition agency shall submit calculated data on land compensation fees, resettlement subsidies, and basic endowment insurance premiums to the finance department, the labor and social security department, and the land and resources department. Basic endowment insurance premiums shall be turned over by the finance department at a time. 8. Basic endowment insurance funds shall be brought into a special financial account of the same level, and managed under revenue and expenditure titles separately. Funds appreciation earnings shall be entered into the pooling and personal accounts respectively. The procedures for the administration and accounting for basic endowment insurance funds shall be subject to the provisions formulated by the province-level finance, and human resources and social security departments. 9. A risk reserve for the basic endowment insurance for land-expropriated farmers shall be established. Upon land transfer, the finance department shall withdraw 10% of the net return on state-owned land transfer to establish the risk reserve for the basic endowment insurance, to be used specifically to make up deficits in basic endowment insurance funds and for treatment adjustments. The finance department must transfer the risk reserve for the basic endowment insurance withdrawn in the previous year to a special financial account of the same level by March 31 of the current year, and practice separate revenue and expenditure management. When it is necessary to use the risk reserve, the labor and social security department shall propose a fund use plan, and submit to the district people’s government for approval.

10. Any land-expropriated farmer who has covered the basic endowment insurance and paid up his/her premium as stipulated shall receive a basic endowment insurance benefit from the month following his/her 60 full years on a monthly basis. Any land-expropriated farmer of over 60 full years upon covering the insurance shall be insured instantly and receive a basic endowment insurance benefit from the next month on a monthly basis by paying up his/her basic endowment insurance premium at a time. 11. The basic endowment insurance benefit, which shall not be lower than the minimum living security for urban residents, consists mainly of a personal account pension and a basic pension, which shall be disbursed from the personal and pooling accounts respectively, and where the balance of the personal account is insufficient, from the pooling account. Monthly basic endowment insurance benefit = monthly personal account pension (accumulated amount of personal account ÷ 180) + monthly basic pension (40% of the monthly rate of minimum living security for urban residents at the beginning) Presently, the rate of minimum living security for urban residents of Zhaoyang District is 195 yuan/month, which means the monthly basic endowment insurance benefit is 78 yuan. Age structure Payment provisions Men: 16-60 years 1,342 yuan (60% of the monthly average pay of workers of Zhaotong Municipality) shall be taken as Women: 16-55 years the base amount of payment, and the endowment insurance premium of 15 years paid at a time at the proportion of 17%. The monthly average pay of workers of Zhaotong Municipality in 2008 was 2,237 yuan. Men: >60 years 447 yuan (20% of the monthly average pay of Women: >55 years workers of Zhaotong Municipality) shall be taken as the base amount of payment, and the endowment insurance premium of 15 years paid at a time. At the beginning of receipt of the benefit, anyone who has paid premium for 15 years or more and whose monthly basic endowment insurance benefit is below the monthly rate of minimum living security for urban residents, the difference shall be made up from the pooling account. 12. The rate of the basic endowment insurance benefit is subject to adjustment from time to time with economic and social development by reference to the rate of minimum living security for urban residents. 13. The social insurance agency shall prepare a fund use plan for the basic endowment insurance benefit on a monthly basis. After such plan has been examined by the labor and social security department of the same level and reexamined by the finance department of the same level, the

benefit shall be disbursed by the finance department of the same level to the social insurance agency, which shall grant it on a public basis. 14. The auditing department shall audit and supervise the receipt, disbursement, management and operation of compensation fees for land acquisition and endowment insurance funds for land-expropriated farmers. 15. If the endowment insurance benefit of land-expropriated farmers has not been secured, no application for land acquisition shall be accepted.

5.2.5 Income restoration plan

In order to restore and develop production as well as living of the displaced persons as soon as possible, the following specific measures will also be taken: (1) During the engineering construction, displaced labor force will be preferentially arranged, and local construction as well as living materials will be used preferentially. (2) When projects of labor service output require labor force in the community, displaced persons are arranged preferentially; (3) The Project provides technical training for 1,301 people out of 289 households affected by permanent collective-owned land acquisition in groups. These affected households mainly live in four communities including Guanba, Nanwenquan, Shizhahe and Shuitangba. Therefore, the owner will hold technical training for the affected households in the four communities. Lectures are given in languages which can be understood by the displaced persons, so as to improve vocational skills of farmers and increase economic income of the displaced persons. (4) Agricultural population who loses more than 50% of the contract land will have the privileges of acquiring jobs in enterprises locating the central city planning area.

5.2.6 Relocation, reconstruction and resettlement plan for displaced persons

(1) Resettlement of rural residents According to the boundary range defined by the Project, 577 rural residents out of 128 households are involved in house demolition for the river rehabilitation project. Most of the houses are built next to river channels; but in most lots, the other sides of the river channels are wide enough for construction. According to the results of door-to-door survey at this stage, based on the negotiation with feasibility-study institutions and opinions from

affected residents, these houses are not demolished as many as possible during the construction; concerning houses that must be demolished, one- time cash compensation and self-building in planned plots will be made and adopted. If the displaced persons choose other forms such as purchasing houses for resettlement, the rural residents will be given compensations at the price of house resettlement, moving subsidies and transition rent subsidies. (2) Resettlement of urban residents Only 6 households are affected by house demolition of the river rehabilitation project in the Project. Living within the river rehabilitation boundary, the residents all need non-local relocation and resettlement. According to the results of site door-to-door survey at this stage, based on opinions from that affected residents, the District People’s Government, Sub-district Office and Village Committee study and decide to adopt one-time cash compensation resettlement or property right exchange resettlement for the 6 households. House demolition involved in the Project adopts the form of currency compensation; after asking opinions from displaced persons, the qualified real estate price evaluation agency is authorized to evaluate the demolished real estates (including indoor and outdoor fitments and attachments) household by household, and then the compensation contract is signed according to the current price of resettlement, buying out in one time. After being compensated with house resettlement price, moving subsidies and transition subsidies according to policies, the residents can rebuild or purchase houses. The property right exchange resettlement will be carried out and masonry-concrete houses will be built nearby in a centralized manner for it. Besides, commercial residential buildings can be purchased for resettlement in lots with similar factors, and the resettlement will be carried out based on the principle of “1 square meter demolition with 1 square meter exchange and first demolition for first selection”. 5.2.6.1 Selection and standards for house sites The Project only carries out one-time resettlement on rural residents who are involved in house demolition and on land-expropriated farmers. The specific resettlement plan and compensation rates are carried out under signed contract of both parties according to the current rates for house demolition in each area. 5.2.6.2 Infrastructure plan in resettlement site The demolition of rural houses mostly involves urban suburbs and land acquisition as well as house demolition is frequent, so that many communities have arranged centralized resettlement sites for their residents. The resettlement sites are commonly close to the original range of the affected communities and the infrastructures are perfect. The infrastructures in the resettlement sites are preferentially contracted by communities; the combination of household joint self-building and unified construction is adopted for the construction of resettlement houses for land-expropriated

farmers under the premise of obeying the planning design. Fees at this stage are excluded in the estimation of compensation investment. 5.2.6.3 Deployment of social service facilities in resettlement sites Since the social service facilities such as schools, medical centers, etc are not involved in land acquisition of the project construction, the displaced persons can utilize the original facilities such as schools, medical centers, commodity networks, etc without rebuilding. After the relocation, the distance from relocation sites to the original social service facilities is basically the same as that of before. 5.2.6.4 Community management and house construction for displaced persons The resettlement involved in the project takes the condition of being not far from the original community range, so that the community management after the resettlement of the displaced persons maintains the original community management system without adjustment. According to the results of door-to-door survey at this stage, the affected residents all agree with self-demolition and self-rebuilding concerning house demolition and rebuilding. Therefore, the house construction for resettlement at this stage adopts the form of self-demolition and self-rebuilding in the unified plots for rebuilding.

5.3 Restoration plan for temporarily occupied land

Temporary land occupation for construction refers to land temporarily occupied during the engineering construction period, including land occupied for sludge drying factories, production and living during the construction, temporary roads for construction, etc. The owner specifies the using mode, restoring requirements and the rates of compensation which needs to be paid by the construction contractor for temporary land occupation in the construction contract signed with the contractor. Concerning the temporary land occupation, compensation fees for one-year occupation and one-time land recultivation fees will be temporarily calculated in the budget shown in the report. In order to reduce the impact of temporary land occupation such as road excavation on the surrounding environment and residents, the project design agency fully takes the location selecting, operating form of construction and recultivation after the construction into consideration for the temporary land occupation.

5.4 Restoration plan for affected vulnerable groups

Land acquisition of the project affects 28 households of vulnerable groups out of 6 sub-districts, including 13 households receiving minimum living security, 9 households with a disabled householder or family member, 2 households with a psychosis family member and 3 single-parent households in hardship. Concerning the vulnerable groups, the Project will give special assistance during their resettlement. Cadres in each Xiang and village will take the lead in setting up difficult-household helping groups to provide timely assistance in production and living resettlement of the vulnerable groups. Part of the fees will be calculated in the budget estimated in the report temporarily according to 1% of the compensation fees for village resettlement, which is 335,000 yuan in total for supporting the vulnerable groups. If more vulnerable groups are involved during the implementation, relevant supporting and caring should be given to them, such as in aspects of allocation for houses and resources.

5.5 Restoration plan for ethnic minorities

Based on the population of ethnic minorities affected by each subproject, only the river rehabilitation project of Zhaotong Central City Environmental Construction Project involves land acquisition and house demolition for the ethnic minorities of which mainly Hui people are affected. These Hui people reside in the typical pattern of “large mixed distribution and small settlement”, and their ways of production as well as economic development level has little difference from those of Han people. See Table 6-2 for distribution of ethnic minorities affected by the project.

Distribution of ethnic minorities affected by the project Table 5-2 unit: Household Ethnic Communities group Yingfeng Nanwenquan Shuangyuanzi Shizhahe Shuitangba Jizhong Yi 0 1 1 4 0 1 people Hui 3 36 0 0 3 0 people

Types of ethnic minorities affected by the project Table 5-3 Unit: Household Ethnic groups Types of land acquisition Yi people Hui people Land acquisition without 4 31 house demolition House demolition without 1 5

land acquisition Land acquisition and 0 0 house demolition Temporary land 5 10 acquisition Only tree acquisition 1 2

181 people of ethnic minorities out of 49 households are affected by the project and mainly live in Nanwenquan Community. 31 households of Hui people and 4 households of Yi people are involved in permanent land acquisition, 5 households of Hui people and 1 household of Yi people are involved in house demolition. 10 households of Hui people and 5 households of Yi people are involved in temporary land acquisition. According to the OP4.10 policy standards of the World Bank, “ethnic minorities” relate to special and vulnerable social culture groups. The ethnic minority groups in accordance with policies can be defined according to the varying degree of the following characteristics: To self-appraise oneself as a member of a unique ethnic minority cultural group, and the appraisal is also approved by others; To attach oneself to a residential area with unique geographical characteristics or a handed-down territory from ancestors in the affected areas, and to natural resources in the residential area or territory. To have traditional cultural, economic, social or political systems different from mainstream societies and cultures. To always have ethnic minority language different from the native or local official languages. Two ethnic minorities involved in the Project include Hui people and Yi people who live in the pattern of mixed and decentralized distribution. Their cultural characteristics are basically the same as those of the main ethnic groups. Hanese is universal in the affected areas, so that the resettlement working group considers the two not to be applicable to the ethnic minority OP4.10 policies of the World Bank. However, out of respecting and protecting the ethnic minorities according to the World Bank and relevant domestic laws and policies, the Project still attaches emphasis on their compensation and resettlement, about which the specific plan is as follows: Since Nanwenquan Community is an urban suburb area, land is limited and the per capita land amount is small, the resettlement form of cash compensation is adopted for Hui people involved in permanent land acquisition instead of land readjustment. Shizhahe Community has relative large land amount, so that the resettlement forms of land readjustment or cash compensation can be selected on the basis of asking opinions from displaced persons. If the resettlement form of land readjustment is selected, compensation fees for young crops and ground attachments will be paid for the displaced persons, and the fees for land as well as resettlement subsidies

will be managed and used collectively by the villager team. If villagers do not need unified resettlement, compensation fees for young crops as well as ground attachments and the resettlement subsidies will be directly paid for the resettled villagers, and the rest fees will be collectively managed and used by units involved in land acquisition. In the Project, one Yi residential household and four Hui residential households are involved in house demolition. These ethnic minorities will be resettled centrally or otherwise (e.g., purchase of housing) on the basis of consultation in order to maintain their existing livelihoods, living habits and social relations. The houses to be demolished will be compensated for at the replacement cost. Residents that select central resettlement will be resettled at residential resettlement sites planned by their communities, where housing sites will be appropriated by the land and resources department in the unit of household at the prevailing land price. These housing sites will be repurchased by the relocated households at the prevailing land price; if displaced persons are unwilling to accept central resettlement and select other modes of resettlement, such as purchase of housing, the house replacement cost, the moving subsidy and the transition subsidy will be paid to rural residents directly.

5.6 Relocation and reconstruction plan for organs, enterprises and public institutions

Only the river rehabilitation project of the Project involves 8 enterprises and public institutions (4 enterprises and 4 organs as well as public institutions), of which foreign trade teams, warehousing and transportation companies, agricultural materials companies, medicine inspecting institutes, power buildings and industrial & commercial bureaus are involved in large- area demolition of houses next to or over rivers. The PMO (project management office) and the resettlement working group will try their best to negotiate with feasibility study institutions, make fine adjustment on the project planned boundary or formulate an alternative plan and avoid house demolition as much as possible under the circumstance of not affecting project construction. As the houses involve office buildings and residential buildings of institutions, the compensation amount for house demolition will be tremendously great and large population will be affected once they are demolished. Concerning the other two enterprises and public institutions, as only a water pumping station is involved in the Operating Service Center Store of Yingfengqiao Diandongbei Big Market and Zhaotong No.1 Middle School, the main office areas are located outside the affected area, so as to avoid the relocation. The owner negotiates with the 2 enterprises and public

institutions to carry out one-time cash compensation, and the specific compensation amount is in accordance with the agreement signed by both parties.

5.7 Individual Businesses

Individual businesses adopt mixed type residential houses or commercial houses of enterprises and public institutions. Their houses have been included in the total area of the residential houses or houses of enterprises and public institutions, and are compensated according to the replacement price or evaluation in terms of their different natures. 65 individual businesses are involved in the project construction. Concerning the affected individual businesses, the plan of house demolition is notified to them 3 mouths in advance so as to protect their legitimate rights from being infringed. Meanwhile, they will be given a loss fee for 3-mouth’ shutout according to the Regulations of Management for Urban House Demolition in Yunnan Province. Both the shutout fee per mouth and the moving subsidy are temporarily counted by 1,000 yuan per household. In addition, the compensation fees for each household may be different owning to the different decoration, area, lot, orientation, business industry, etc. The specific compensation fees are determined by the owner and the affected businesses through negotiation. The involved 65 individual businesses all adopt leased shops, for which the local government should provide appropriate commercial blocks for them to choose besides conventional compensations. Concerning their employees, if the shops continue to be operated after relocation, they will be employed continuously. Meanwhile, through the negotiation with Zhaotong Human Resource Market, qualified personnel will be employed preferentially when there are recruitments.

5.8 Relocation and Reconstruction Plan for Special and Municipal

Facilities

Special and municipal facilities affected by land occupation of the project include 23 telegraph poles (equal to 460m civil wires), 500m water pipes, telephone lines, TV lines and high voltage wires. The effected telecommunications, mobile communication, united telecommunication, broadcast televisions and municipal facilities will be taken into consideration in the engineering design combining with the project design, and will be protected or restored during the construction.

Related processional departments will propose a plan and take in charge of it to restore the special facilities.

5.9 Organization and Management of Resettlement

Implementation

The implementation of the resettlement plan will be led by the resettlement leading group of the project. Established by relevant personnel from various departments, the resettlement office of the project formulates resettlement policies and takes in charge of the propaganda, mobilization and organization of the relocation and resettlement for displaced persons. As a main channel for them to reflect problems, the resettlement office should not only listen to, collect and sort out their opinions as well as problems timely and fully, and instantly reflect them to higher authorities or related departments in charge, but also send feedbacks for handling suggestions to the displaced persons immediately.

6. Estimates of Compensation Fees for Land Acquisition and House Demolition

The total estimate of compensation investments for the resettlement of displaced persons in the Project is 59,194,800 yuan (including taxes), of which compensation fees for rural displaced persons are 25,992,800 yuan, accounting for 60.28% of the total investment; compensation fees for urban displaced persons are 7,514,000 yuan, accounting for17.43%; compensation fees for relocation of enterprises and public institutions are 563,400 yuan, accounting for 1.3%; compensation fees for reconstruction of professional projects are 291,000 yuan, accounting for 0.67%; compensation fees for producing and living facilities are 835,500 yuan, accounting for 1.94%; and other fees are 4,003,000 yuan, accounting for 9.28%%. See Table 6-1 for details of compensation investment budget for relocation and resettlement of the Project.

Summary of compensation investment estimate for relocation and resettlement of the Project Table 6-1 No. Item Amount (10,000 yuan) Other temporary Total Percentage Fenghuang Taiping Longque Beizha Jiupu Shouwang land acquisition Compensations for I resettlement of rural 706.15 556.46 693.92 42.76 135.24 464.75 2599.28 60.28% displaced persons Compensation fees for land (I) 362.86 472.4 691.21 34.75 21.33 464.75 2047.3 47.48% acquisition and occupation Permanent land acquisition 1 292.62 431.17 682.86 1406.65 32.62% for the Project Temporary land acquisition 2 70.24 41.23 8.35 34.75 21.33 175.9 4.08% for construction Other temporary land 3 464.75 10.78% acquisition Compensations for houses (II) 307.55 67.52 3.59 111.11 464.75 489.77 11.36% and attached buildings Compensation fees for (III) 7 2 0.2 2.8 12 0.28% relocation (IV) Other compensation fees 28.74 14.54 2.71 4.22 0 50.21 1.16% Compensation fees for 28.74 14.54 2.71 4.22 0 50.21 1.16% scattered trees Compensation fees for II 751.4 751.4 17.43% urban displaced persons (I) Compensations for houses 202.66 0 202.66 4.7%

and attached buildings of residents Compensation fees for (II) 0.6 0.6 0.01% relocation Collective-owned houses (III) 522.14 522.14 12.11% and attachments Compensations for (IV) relocation of individual 6.5 6.5 0.15% businesses Fees for shutout losses of (V) 19.5 19.5 0.45% individual businesses Compensation fees for III relocation of enterprises and 56.34 56.34 1.31% public institutions Compensation fees for (I) houses and attached 56.34 56.34 1.31% buildings IV Special facilities 1.5 27.6 29.1 0.67% V Producing and living facilities 51.55 32 83.55 1.94% VI Other fees 400.3 9.00% VII Contingency reserves 392.01 9.00% Static investment (excluding 4311.98 100.00% taxes) Related taxes 1607.5 Static investment (including 5919.48 taxes)

6.1 legal framework

(1)Pertinent provisions of the Land Management Law of the People’s Republic of China, Revised and adopted on August 28, 2004; (2) Regulations on Promulgating Specific Policies for Farmland Occupation Tax (Cai Nong Zi [1987] No.206), Promulgated on June 25, 1987; (3) Rules for the Implementation of the Interim Regulations of the People’s Republic of China on Farmland Occupation Tax, State Administration of Taxation Decree No.49 ,effective from January 1, 2008; (4) Regulations on the Administration of Urban House Demolition, November1,2001; (5) Pertinent provisions of the Property Law, October 1, 2007; (6) Decision of the State Council on Deepening Reform and Exercising Strict Land Administration (Guo Fa [2004] No.28), October 21, 2004; (7) Regulations of Yunnan Province on Land Administration, September 24, 1999; (8) Uniform Annual Output Value Standard for Land Acquisition and Regional Integrated Land Compensation Rates of Yunnan Province (Interim), July 1, 2009; (9)Circular of the Ministry of Finance, the Ministry of Land and Resources, and the People’s Bank of China on Adjusting Policies for Compensated Use of Additional Land for Construction (Cai Zong [2006] No.48), Effective from January 1, 2007; (10) Procedures of Zhaotong Municipality for Compensation and Resettlement for Land for Construction in the Urban Planning Area (Zhao Zheng Fa [2004] No.39), March 31, 2004; (11) Interim Procedures for Compensation and Resettlement for House Demolition of Zhaotong Central City (Zhao Jian Guan [2008] No.3), October 30, 2008; (12) Physical indicators affected by land acquisition and house demolition.

6.2 Principles of Compensation

Compensation rates of the Project are defined according to relevant laws and regulations on the basis of actual conditions. (1) Compensation fees for land, resettlement subsidies and compensation fees for young crops are defined according to the Regulations of Land Management in Yunnan Province with relevant documents of Zhaoyang District as references on the basis of its practical operating standards. (2) Compensation fees for special facilities are determined by estimating the investment needed for restoring their functions according to the three- original (original scale, original standards or restoration the original functions) principle.

(3) Compensation rates for scattered fruit trees are determined with relevant documents of all counties on the basis of its practical operating standards.

6.3 Compensation fees

Compensation investment estimate for resettlement of displaced persons due to land acquisition for construction of the Project includes compensation fees for resettlement of rural displaced persons and reconstruction of special facilities, other fees, basic contingency reserves, related taxes, etc., of which compensation fees for rural displaced persons mainly include those for land acquisition, felling of fruit trees, etc. According to the regulations of resettlement policies for displaced persons relates to the Project and other relevant regulations as well as requirements, the above fees are calculated in the follow table:

Summary of Compensation Fees Table 6-2 Amount No. Item Remarks (10,000, yuan) I Compensation fees for 2,599.28 rural displaced persons (I) Compensation fees for 2,047.3 land acquisition and occupation Compensation fees for 1,406.5 permanent land acquisition Compensation fees for 640.75 temporary land acquisition (II) Compensation fees for 489.77 Including compensation fees for houses house sites (III) Compensation fees for 12 relocation of displaced persons (IV) Other compensation 50.21 The Project mainly includes fees compensation fees for scattered trees II Compensation fees for 725.4 resettlement of urban displaced persons (I) Compensation fees for 724.8 Including compensation fees for houses houses of residents and collective- owned houses

(II) Compensation fees for 0.6 relocation of displaced persons III Compensation fees for 26 Including compensation fees for relocation of individual relocation and shutout losses businesses IV Compensation fees for 56.34 demolition of enterprises and public institutions V Compensation fees for 29.1 reconstruction of special facilities VI Producing and living 83.55 facilities VII Other fees 400.3 Including fees for management of construction agency, implementation management, technical training, supervision, monitoring and assessment, planning design, document examination, etc. VIII Basic contingency 392.01 Calculated according to 9% of the reserves sum of items 6.3.1 to 6.3.6, the basis contingency reserves are mainly used for various unpredictable events. IX Related taxes 1607.5 Including farmland occupation taxes, expenses for reclamation, paid utilization fees for new construction land and endowment insurance for land-expropriated farmers.

6.3.1 Compensation Fees for Rural Displaced People

Compensation fees for resettlement of rural displaced persons in the Project are25,992,800 yuan in total, including 20,473,000 yuan for land acquisition and occupation, 4,897,700 yuan for houses, 120,000 yuan for relocation and 502,100 yuan for felling of fruit trees.

6.3.1.1 Compensation fees for land acquisition and occupation (1) Compensation fees for permanent land acquisition Compensation fees for permanent land acquisition mainly include those for land, resettlement subsidies, young crops or forests. Calculated according to compensation rates of various land measured and defined in the 4th chapter, these fees are 14,065,000 yuan in total. (2) Compensation fees for temporary land for construction

Compensation fees for temporary land are 6,406,500 yuan in total calculated according to compensation rates measured and defined in the 5th chapter. 6.3.1.2 Compensation fees for houses Calculated according to compensation rates measured and defined in the 4th chapter, compensation fees for houses in the Project are 4,897,700 yuan in total, including those for house sites. 6.3.1.3 Compensation fees for relocation of displaced persons Compensation fees for relocation of displaced persons are 120,000 yuan in total calculated according to compensation rates measured and defined in the 4th chapter. 6.3.1.4 Other compensation fees Compensation fees for scattered trees are 502,100 yuan in total calculated according to compensation rates measured and defined in the 4th chapter.

6.3.2 Compensation Fees for Urban Displaced People

6.3.2.1 Compensation fees for houses of residents Compensation fees for houses of residents are2,026,600 yuan in total calculated according to compensation rates measured and defined in the 4th chapter. 6.3.2.2 Compensation fees for relocation of displaced persons Calculated according to compensation rates measured and defined in the 4th chapter, compensation fees for relocation are 1,000 yuan per household in one time and these fees are 6,000 yuan in total for urban residents out of 6 households. 6.3.2.3 Compensation fees for collective-owned houses Compensation fees for collective-owned houses are 5,221,400 yuan in total calculated according to compensation rates measured and defined in the 4th chapter.

Summary of compensation fees for resettlement of urban displaced persons Table-6-3 Projects Amount (10,000 Remarks yuan) Compensation fees for 202.66 Including compensation fees for houses of residents houses and attachments

Relocation subsidies 0.6 Involving residents out of 6 for displaced persons households, and calculated according to 1,000 yuan per household Compensation fees for 522.14 Involving 1,864.8 m² collective- collective-owned owned frame houses, and houses calculated according to 1,100 yuan/ m²

6.3.3 Compensation Fees for Relocation of Individual

Businesses

Compensation fees for relocation of individual businesses include those for house properties, relocation subsidies and shutout losses of their own shops. If employees are laid off due to the relocation, compensations for them and the resettlement of reemployment should be taken into consideration. These fees for each household are different owning to the different decoration, area, lot, orientation, business industry, etc. The specific compensation fees and reasonable rates are negotiated by the owner and the affected businesses. 260,000 yuan are temporarily calculated for the project according to the temporary compensation rates and principles defined in the 4th chapter, of which 65,000 yuan for relocation subsidies and 199,000 yuan for shutout losses.

6.3.4 Compensation Fees for Relocation of Enterprises and Public Institutions

Two public institutions of Diandongbei Big Market and Zhaotong No.1 Middle School are involved in demolition of houses, and the demolition area is 563.4m². It is calculated that compensation fees for relocation of enterprises and public institutions are 563, 400 yuan.

6.3.5 Compensation Fees for Reconstruction of Special

Facilities

Compensation fees for reconstruction of special facilities relates to the project are 291,000 yuan in total according to the planning results and investments of professional projects in Zhaoyang District.

6.3.6 Compensation Fees for Producing and living facilities

Producing and living facilities relates to the project include water pipe, transformers and bridges.The compensation fees are 835,500 yuan in total.

Summary of compensation fees for reconstruction of special facilities Table 6-4 Communities Projects Length (km) Unit price (10,000 yuan/km) Taiping Power line 4.6 6 Fenghuang Telecommunication 0.2 4 optical cable Broadcasting cable 0.47 1.5

Summary of compensation fees for Producing and living facilities Table 6-5 Communities Projects Length Unit price Total(10,000 yuan) Taiping Water pipe 150m 50yuan/m 0.75 transformer 2 150,000 30 yuan Small refuse dump 2 14,000 2.8 bridge 1 180,000 18 Shouwang bridge 2 160,000 16 Total 83.55

6.3.7 Other Fees

Other fees include those for management of construction agency, implementation management, technical training, supervision, monitoring and assessment, planning design, document examination, etc. See the following table for details:

Summary of other fees Table 6-6 No. Projects Amount Remarks (10,000 yuan) 1 Fees for 17.6 These fees are mainly used by management of construction agency during the construction resettlement of displaced persons agency and calculated according to 0.5% of the sum of items 6.3.1 to 6.3.5. 2 Fees for 105.7 These fees are mainly used by implementation Relocation Implementing agencies management during the implementation of land acquisition as well as demolition and resettlement of displaced persons, and are calculated according to 0.3% of the sum of items 6.3.1 to 6.3.5. 3 Fees for 17.7 These fees are mainly used for technical training displaced persons in training technical skills for production, and are calculated according to 0.5% of the sum of items 6.3.1 to 6.3.5. 4 Fees for 35.2 These fees are used by supervision supervision units for controlling the progress, quality and funds during the resettlement of displaced persons, and are calculated according to 1% of the sum of items 6.3.1 to 6.3.5. 5 Fees for 52.7 These fees are mainly used by monitoring and external monitoring and assessment assessment units for carrying out monitoring and assessment during the resettlement of displaced persons, and are calculated according to 1.5% of the sum of items 6.3.1 to 6.3.5. 6 Fees for 88 These fees are calculated according planning design to 2.5% of the sum of items 6.3.1 to 6.3.5, and are mainly used by prior- period design departments of the project, survey organizations and local governments for participating in the design as well as survey of land acquisition/demolition and the formulation of relocation action plan. 7 Fees for design 10.5 These fees are calculated according document to 0.3% of the sum of items 6.3.1 to examination 6.3.5, and are mainly used by consultation units or departments in charge for carrying out consultation or examination on the planning design

results of the resettlement for displaced persons. 8 Fees for 39.4 These fees are calculated according management of to 2.8% of the total amount of land land demolition acquisition and are mainly used by land acquisition and relocation departments during the land acquisition. 9 Fees for 33.5 These fees are calculated according assisting to 1% of the sum of items 6.3.1 to vulnerable 6.3.2 and are mainly used for groups assisting vulnerable groups in the resettlement.

(1) Fees for management of construction agency Fees for management of construction agency are mainly used by the units during the resettlement of displaced persons and are 176,000 yuan in total calculated according to 0.5% of the sum of items 6.3.1 to 6.3.5. (2) Fees for implementation management Fees for implementation management are mainly used by Relocation Implementing agencies during land acquisition as well as demolition and the resettlement of displaced persons, and are 1,057,000 yuan in total calculated according to 0.3% of the sum of items 6.3.1 to 6.3.5. (3) Fees for technical training Fees for technical training are used for training displaced persons in technical skills for production and are 171,000 yuan in total calculated according to 0.5% of the sum of items 6.3.1 to 6.3.5. (4) Fees for supervision Fees for supervision are mainly used by supervision units for controlling the progress, quality and funds during the resettlement of displaced persons, and are 352,000 yuan in total calculated according to 1% of the sum of items 6.3.1 to 6.3.5. (5) Fees for monitoring and assessment Fees for monitoring and assessment are mainly used by external monitoring and assessment units for carrying out monitoring and assessment during the resettlement, and are 527,000 yuan in total according to 1.5% of the sum of items 6.3.1 to 6.3.5. (6) Fees for planning design Fees for planning design are 880,000 yuan calculated according to 2.5% of the sum of items 6.3.1 to 6.3.5 and are mainly used by prior-period design departments of the project, survey organizations and local governments for participating in the design as well as survey of land acquisition/demolition and the formulation of relocation action plan. (7) Fees for design document examination Fees for design document examination are 105,000 yuan calculated according to 0.3% of the sum of items 6.3.1 to 6.3.5 and are mainly used by

consultation units or departments in charge for carrying out consultation or examination on the planning design results of the resettlement for for displaced persons. (8) Fees for management of land relocation Fees for management of are 394,000 yuan in total calculated according to 2.8% of the total amount of land acquisition and are used by land acquisition departments during the land acquisition. (9) Fees for assisting vulnerable groups Fees for assisting vulnerable groups are 335,000 yuan in total calculated according to 1% of the sum of items 6.3.1 to 6.3.2 and are used for assisting vulnerable groups in the resettlement.

6.3.8 Basic Contingency Reserve

Basic contingency reserve is calculated according to 10% of the sum of items 6.3.1 to 6.3.6 and is mainly used for various unpredictable events.

6.3.9 Taxes

(1) Farmland occupation tax According to the applicable provisions of the Provisional Regulations of the People’s Republic of China on Farmland Occupation Tax and the Notice of Issuing Regulations for Specific Policies on Farmland Occupation Tax, the farmland occupation tax in Zhangyang District, Zhaotong Municipality is 3,144,000 yuan calculated according to 22 yuan/m². (2) Fees for land reclamation According to the applicable provisions of the Regulations of Yunnan Province on Land Management, farmland and garden plots acquired by the Project should pay fees for land reclamation according to the standard of 3 to 8 times of the average annual output value in three years before of the requisition. These fees in Zhangyang District, Zhaotong Municipality are 2,571,000 yuan calculated according to 12,000 yuan/mu. (3) Paid utilization fees for new construction land and endowment insurance of land-expropriated farmers According to the applicable provisions of No.48 [2006] of Notice of the Ministry of Finance, the Ministry of Land and Resources and the People’s Bank of China on Regulating Policies of Paid Utilization Fees for New Construction Land and Endowment Insurance Land-expropriated Farmers, farmland and non-utilized land which are converted into construction land need to pay fees in this item and the standard is 20 yuan/m².

Besides, According to the applicable provisions, fees for endowment insurance of land-expropriated farmers are 7,501,000 yuan in total calculated according to 35,000 yuan/mu.

6.4 Disbursement of Funds

6.4.1 Sources of Funds and Principles of Disbursement

(1) All fees related to land acquisition and demolition will be included in the total estimate of construction cost, and compensation fees for land acquisition and demolition and other fees will be paid to affected collectives and individuals by the resettlement office of Xiang-town sub-district office through district finance; (2) Compensation fees for houses should be paid before displaced persons start to build houses; (3) Compensation fees for land should be paid for the affected villager teams before the project construction. According to the actual conditions and willingness of displaced persons, anyone of those who are capable of giving up farm production and engaging in trading and agree with cash compensation will gain cashes of the subsidies for land acquisition. (4) In order to ensure the smooth implementation of land acquisition as well as demolition and resettlement of displaced persons, the resettlement implementing agencies at all levels must establish financial and supervisory agencies, so as to ensure the disbursement of funds.

6.4.2 Financial Management Agencies for Resettlement

(1) Organizations in charge of compensation fees for rural land acquisition include the district PMO, owners of subprojects, the district resettlement office of displaced persons, land management departments, sub-districts/Xiang- town and village committees. (2) Organizations in charge of compensation fees for demolition of rural houses include the district PMO, owners of subprojects and the district resettlement office of displaced persons. (3) Resettlement funds are disbursed from top to bottom. Organizations at all levels will strictly execute financial settlement and audit system, regularly examine and report the disbursement as well as using of the funds, and put forward amending as well as remedying measures for the unexpected, so as to ensure the disbursement and using of the funds on schedule.

6.4.3 Fund Flow

(1) According to compensation policies and rates determined by the resettlement plan for displaced persons, owners of subprojects should sign general agreements of land acquisition and demolition with the district national land department or the district resettlement office, and the district national land department should sign the Agreement of Compensation for Land Acquisition and Demolition with each Xiang and town. (2) The district national land department, the district resettlement office or Xiang (town) should sign the “Agreement of Compensation for Land Acquisition” with villager committees involved in land acquisition and demolition. (3) The district national land department, the district resettlement office or sub-district, Xiang (town) should sign the “Agreement of Compensation for House Demolition” with relocation households. (4) According to the contents, quantity and time regulated by the Agreement of Compensation for Land Acquisition and Demolition, the owners of the subprojects should pay compensation fees to the district finance via banks, and then the fees for house demolition will be paid to displaced persons by installments through the resettlement office or sub-district, Xiang (town).

7. Organization

7.1 Organizational setup

In order to ensure the smooth implementation of the Project, Zhaoyang District People’s Government, Zhaotong Municipality and the owners have set up necessary coordinating agencies so as to plan, coordinate and monitor the resettlement action. The established organizations for land acquisition, house demolition and resettlement of the Project are as follows: — Project Resettlement Coordinating and Leading Group — Project Resettlement Leading Group — Resettlement Leading Group of Zhaoyang District — Management Office of Foreign Funded Projects of Zhaoyang District — Owners of Zhaotong Municipality — Sub-district/Town resettlement coordination teams — Village Committees and Villager teams

7.2 Main responsibilities

In order to strengthen the organizational leadership of the Project, Zhaoyang District People’s Government established the Coordinating and Leading Group of Foreign Funded Projects to take charge of general plan, integrated management, external contact, supervision and inspection of the Project and coordinate to solve the Project related matters. The group leader is taken by the district chief; and the members are Development and Reform Bureau, Finance Bureau, Construction Bureau, Environmental Protection Bureau, Water Resources Bureau, Land and Resources Bureau and other related departments of the district. The leading group consists of an office. Under the unified command of the leading groups and the PMO at different levels, the office takes charge of the early-stage preparations, organization, management, coordination, supervision, guidance, quality assurance, annual plan, ,follow-up monitoring of the implementation of the Project, and daily routines of the Project, regularly reports to the supervising authorities, and coordinates and implements the responsibilities and obligations regulated in the legal text of the Project. The specific agencies and their responsibilities are as follows:

7.2.1 Project resettlement coordinating and leading group

In order to ensure the smooth resettlement of the project, the leaders with specific duties of the units such as Environmental Protection Bureau, the Development and Reform Commission, the Department of Finance, and the Department of Construction of Yunnan Province form the Project Resettlement Leading Group. The main responsibilities are to strengthen the leadership over the project, make policies of the Project Resettlement Action, and organize and coordinate the relations of resettlement agencies at different levels. The leading group consists of an office which deals with routine work, and the office is set up in the World Bank Office of Environmental Protection Bureau of Yunnan Province.

7.2.2 District project resettlement leading group

The main responsibilities of the group are to take charge of the leadership of the Project, and the leadership and coordination of the land acquisition, house demolition and resettlement action, to make policies for resettlement of the project, to examine and approve the Resettlement Action Plan, and to supervise and inspect internally in the course of resettlement action plan implementation. The group makes general plan, coordinates and solves related key issues of the project. The leading group consists of an office, which takes charge of daily routines such as integrated management, organization and coordination, external contact, supervision and inspection and so on. The office is set up in the Management Office of Foreign Funded Projects of Zhaoyang District, Zhaotong Municipality. Resettlement office head: Chenjun, telephone: 0870- 2226181. According to the Resettlement Action Plan and the actual development of the Project, we shall raise compensation fees for resettlement timely, and appropriate fund to the resettlement fund special account and the resettlement office administrative expense special account quarterly; we shall examine the fund plan proposed by the resettlement office, supervise and audit the expenditures of the resettlement fund and administrative expense; we shall take charge of coordination such as the coordination of house sources of economically affordable housing and low-rent housing, the coordination of large enterprises and public institutions in the course of relocation and the coordination among other functional agencies in the city; we shall implement internal monitoring of the Resettlement Action Plan, inspect whether the resettlement action is consistent with the Resettlement Action Plan and the World Bank Guide Rule; and we shall examine the progress of the implementation of the Resettlement Action Plan, internal monitoring reports

compiled by Resettlement Office of the city and external reports submitted by Independent Monitoring Agency.

7.2.3 Sub-district/Town resettlement coordination teams

Town working team is led by leaders with specific duties, which is formed by important officials in land management institute, environmental protection institute and affected villages. The working team is in charge of implementing, examining, monitoring and recording all resettlement actions within towns; resettlement working team formed by important leading cadres of village committee and villager team participates and implements various activities of resettlement.

7.2.4 Village committees/neighborhood committees

The village committees are responsible for reporting the nature, area, land/labor ratio of the land for acquisition and occupation. The village committees and villager representatives directly participate in the resettlement work, including investigation, resettlement and rebuilding plan, dispute settlement and so on; and the sub-district neighborhood committees are responsible for assisting to deal with relocated residents, and expressing the villagers’ opinions.

7.3 Staffing

In order to ensure the smooth implementation of resettlement, the provincial PMO, the Zhaoyang PMO, subproject owners, the People’s Governments of Zhaoyang District and Zhaotong Municipality and related departments have invested a lot of manpower and capital, and the Project Resettlement Agency formed by Land and Resources Bureau, Finance Bureau, PMO, two Owners, Resettlement Bureau, Government Office and so on is set up successively. Affected sub-district offices and villages and towns also correspondingly set up agencies.

8. Public Participation and Appeals

8.1 Public participation

According to the policies and regulations related to land acquisition, house demolition and resettlement of the State, Province and various subproject cities, in order to protect the lawful rights and interests of relocated residents and relocated units and reduce dissatisfactions and disputes, we will further formulate related resettlement policies and enforcement regulations of each project, compile resettlement plan and carry out implementation and organization work according to the nature of reconstruction, and realize the objectives of resettlement better. We will attach great importance to the participation and consultations of displaced persons in the course of formulating related resettlement policies, compiling and implanting plans, so as to widely listen to the views of masses. In the course of formulating the resettlement plan, the competent authorities for land acquisition and house demolition, enforcement agencies and design departments of subprojects adopt different forms to issue the project resettlement policies to the affected by multiple channels. From September, 2009 to November, 2009, 17 working conferences were hold in Zhaotong Municipality, Zhaoyang District and affected sub-district office and communities, with the number of participants more than 200 person-time. The main subjects of the working conferences were that: to carry out the work for project land acquisition, house demolition and resettlement, publicize resettlement polices, ask for opinions of local masses and displaced persons for resettlement work, and formulate resettlement preliminary scheme, etc. Please see table 8-1 for the details of GFD.

Schedule of FGDs Table 8-1 Time Location Activity FGD with leaders of the Zhaoyang District Management Office of September 17 Zhaoyang District PMO Foreign Funded Projects and project leaders, determination of survey sites FGD with persons chiefly responsible for the 4 sub-district offices involved, and September 18 Zhaoyang District PMO project-related training September 19, Longquan Sub-district Community FGD, village-level FGD, door-to-door interview, consultation on morning Office resettlement September 19, Community FGD, village-level FGD, door-to-door interview, consultation on Guanba Community afternoon resettlement September 20, Dengzi Village, Beizha Community FGD, village-level FGD, door-to-door interview, consultation on morning Town resettlement September 20, Community FGD, FGD with Taoist temple and key staff, door-to-door interview, Dalongdong Park afternoon consultation on resettlement September 21, Community FGD, village-level FGD, door-to-door interview, consultation on Taiping Sub-district Office morning resettlement September 21, Ping’an and Taoyuan Community FGD, village-level FGD, door-to-door interview, consultation on afternoon Communities resettlement Fenghuang Sub-district September 22, Community FGD, village-level FGD, door-to-door interview, consultation on Office, morning resettlement Fuqiang Community September 22, Fenghuang and Community FGD, village-level FGD, door-to-door interview, consultation on afternoon Xuezhuang Communities resettlement

September 23, Yingfeng and Heping Community FGD, village-level FGD, door-to-door interview, consultation on morning Communities resettlement November 11, Community FGD, village-level FGD, door-to-door interview, consultation on Shuitangba Community morning resettlement November 11, Community FGD, village-level FGD, door-to-door interview, consultation on Shizhahe Community afternoon resettlement November 12, Community FGD, village-level FGD, door-to-door interview, consultation on Shuiping Community morning resettlement November 12, Community FGD, village-level FGD, door-to-door interview, consultation on Nanwenquan Community afternoon resettlement November 20, Discussion of land acquisition, house demolition and resettlement programs with District government morning heads of government departments concerned and sub-district/Town officials FGD of sub-district/Town displaced person representatives, discussion of land November 21 District PMO acquisition, house demolition and resettlement programs

Before implementing the resettlement work, we shall issue public notices related to project land acquisition and house demolition by local newspaper, broadcast and TV; within the affected communities and villages, we shall paste official notices in the most acceptable language to the displaced persons according to specific circumstances of the local residents, and publicize the principles and policies, compensation rates and appealing channels and so on for the resettlement; and the reports for the Resettlement Action Plan should be placed at locations convenient for borrowing or on the internet convenient for searching. The project information is disclosed in journals or on the internet in Chinese language. The specific time will be in one week after the evaluation is over and the local government gives promises.

Table 8-2 Information disclosure schedule Information Mode of Language Date of publication disclosed disclosure used RAP Newspaper or Chinese Within one week after Internet commitment by the government Resettlement Newspaper or Chinese Within one week after information booklet Internet commitment by the government Notice of land Newspaper, Chinese 2-3 months before land acquisition and Internet or acquisition and house house demolition bulletin demolition Disbursement of Newspaper, Chinese 3 months before compensation fees Internet or commencement of bulletin construction

8.2 Appeal mechanism and channel

In the course of formulating and implementing the Resettlement Action Plan of the Project, we will always encourage the participation of the displaced persons, however various problems occur in the actual work, in order to timely and effectively solve the problems when they occur and ensure the smooth implementation of project construction, land acquisition and house demolition, the transparent and effective appealing channels and corresponding appealing mechanisms for the rural displaced persons are established except the existing appealing channels of letters and visits of the local government at different levels.

8.2.1 Setup and composition of the appeal handling

agency

In order to guarantee the lawful rights of the affected, we will establish a complaint mechanism to provide a convenient, transparent, fair and effective complaining channel for them. The CCCC at SYU works as an Independent Monitoring Agency which consists of a complaint acceptance team. The team has five persons, with the director of the CCCC at SYU holding the post of the team leader; for the other four persons, two of which from the Independent Monitoring Agency, one form PMO, and one from the resettlement office of the municipality. Besides, district, sub-district and town set up one contact man for complaints acceptance who is responsible for the complaints in the jurisdiction and keeps in touch with the Complaint Acceptance Team.

Table 8-3 Summary of appeal contacts and contact information Sub-district/Town Contact Title Tel Management Office of Wang Foreign-funded Urban Deputy Director 0870-2227062 Chaoqian Construction Projects Longquan Sub-district Zhou 13578000286 Deputy Director Office Kaiyong 0870-2121001 Fenghuang Sub-district Liu 1388716399 Deputy Director Office Xingling 0870-2833116 Taiping Sub-district Xiao Deputy Director 0870-2154110 Office Weirong Hong Head, Land and Beizha Town 0870-2831010 Minghai Resources Station Head, Land and Shouwang Xiang Ji Xinglin 0870-2841116 Resources Station Head, Land and Yongfeng Xiang Ma Lei 13887126388 Resources Station Wen Head, Land and Jiupu Town 0870-2861198 Taiping Resources Station

8.2.2 Functions of the appeal handling agency

Protect rights and interests of the affected from being infringed. The establishment of the complaint and appeal mechanism will facilitate the affected to express their views and suggestions for the resettlement work at any time, lead the enforcement agencies to find problems and take effective measures to prevent damages to the displaced persons. Take full advantages of public supervision. The proper settlement of the

problems and results feedback reflect the concerns to affected, and lead the displaced persons not to be suspicious any longer, and to take part in public participation and consultation activities more actively. Reestablish the image of the Resettlement Agencies. Reasonable complaints and appeals originate from the internal management loopholes and external disharmony in the resettlement agency. Complaints and appeals make the defects open, but as long as the appeals are well handled by appeals acceptance agencies, the good public image of Resettlement Agencies will be reestablished, and relations of mutual trust between displaced persons and Resettlement Agencies will be reestablished too. Continuously improve the quality of services. In the Project, the Resettlement Agencies will play down the administrative means, enhance service awareness, and continuously improve the satisfaction of resettlement work. Therefore, the setup and operation of the complainant acceptance agencies will be helpful for the Resettlement Agencies to obtain feedback information concerning quality timely, and continuously take improvement measures to improve the satisfaction for service quality.

8.2.3 Appeal procedure

Complaint acceptance team will start to accept complaints within one week after the resettlement consultation conference, at the same time, they open up complaints special-line telephone and complaints mailbox. Detailed complaint procedures are as follows: 1. The affected people who believe that their rights have been infringed in any aspect of resettlement and restoration can appeal to the Complaints Acceptance Team in written or oral form, if they appeal in oral form, the members of the team will record the complaints in detail and arrange them, then the appeals acceptance team contacts with related responsible agencies to deal with the related matters according to different natures, and submit handling suggestions within two weeks. The appeals acceptance team should submit handling suggestions within two weeks. 2. If the complainants are dissatisfied with views of the Complaints Acceptance Team, they can complain to the Resettlement Office of the Municipal Government for Land Acquisition within one month in written form after receiving the handling suggestions. The municipal land acquisition office will make handling suggestions within three weeks. 3. If the complainants are dissatisfied with the handling suggestions of the District People’s Government, they can complain to the Zhaotong Municipal Government within one month in written form after receiving the handling suggestions. "Mayor’s Mailbox" is responsible for accepting appealing letters, and the Municipal Government will submit handling suggestions within three weeks. 4. If the complainants are still dissatisfied with the handling suggestions

of the Municipal Land Acquisition Office, they can appeal to the local people’s court in accordance with the Civil Procedure Law of the People’s Republic of China, and the court will hear and make decisions. Displaced persons can appeal any aspects of resettlement, including the compensation rates, payment methods and so on. Details of complaint and appeal procedures will be widely publicized in public participation and consultation conferences and be pasted at the places of the offices of resettlement enforcement agencies and appeals acceptance team. At the same time, we will use media tools to strengthen the propaganda, and collect the views and suggestions about resettlement work into information articles which will be handled by the resettlement agencies at different levels in a timely manner. The agencies will accept complaints and appeals of the affected people for free, so the reasonable fees arising therefrom will be paid by the Acquisition and Resettlement Office from the contingencies.

9. Resettlement Implementation Plan

9.1 Implementation Procedure

A. Land Acquisition and Compensation Land acquisition and compensation are completed by the coordination of relevant authorities in the following procedure: a. The project design agency provides detailed drawing on the land acquisition scope, which is surveyed and verified all together by the Zhaoyang District World Bank Office, the subproject owners, governmental departments at all levels, the Land Administration Department and the affected units (individuals) to define the land acquisition scope and quantity. b. The subproject owners apply to the Relevant Land Administration Department for land acquisition. c. Reply to land acquisition applications. d. The subproject owners consult with the Land Administration Department about land acquisition compensation, sign land acquisition compensation agreement and handle the land utilization procedure; e. The District Land and Resources Bureau and the relevant sub- district/Town and community/village go to the site to define the land acquisition scope and quantity. f. The District Land and Resources Bureau signs the Land Acquisition Agreement with the relevant sub-district/Town and community/village. g. Disbursement of the compensation fees. h. Handling legal procedures. i. Project land acquisition. In addition, the disbursement of the land acquisition compensation fees (compensation fee and resettlement subsidy): as for the villages compensated in cash, the resettlement subsidy is directly dispensed to the households affected by land acquisition; if the land compensation fees are to be partially dispensed to the affected households, which should be passed by the villagers General Assembly, and the rest land compensation fees are to be used for investment in agricultural production and infrastructure for the entire village. If resettlement is carried out through land regulation, the land compensation fees and resettlement subsidy should be reserved in the village to be managed and used lawfully by the village.

B. Production restoration Production arrangement and restoration are implemented by the Village Committee, including the following procedures: a. Villagers’ representative conferences are organized and held among the villager groups with resettlement tasks to study and formulate the

compensation proportion, land regulation as well as the overall scheme for production restoration; b. Publicize the compensation proportion, the land regulation and the overall scheme for production restoration; c. Organize production restoration;

C. House demolition and reconstruction House demolition and reconstruction for the displaced persons include the following processes: a. The project design agency provides the scope and quantity of houses affected by the Project and need to be removed; b. The subproject owners, governmental departments at all levels, the Land Administration Department and the affected units (individuals) all together survey and verify the quantity and quality of the houses; c. The subproject owners consult with the Land Administration Department about house demolition compensation matters, sign compensation agreement and handle the land utilization procedures; the Land Administration Departments at all levels, the Xiang (town) and village discuss the compensation rates for houses and attachments and sign House Demolition Agreement; d. The city, district, sub-district/Town sign House Demolition Agreement with the community/village; e. The sub-district/Town resettlement work groups post the notices to publicize the number, compensation rates and demolition time of each household to be demolished to collect the opinions of the replaced households; f. The sub-district/Town resettlement work group and village sign House Replacement Agreement with the replaced households; g. House location is confirmed by the sub-district/Town; h. The displaced persons get the compensation fees; i. The displaced persons rebuilt their houses; j. The displaced persons demolish their old houses.

D. Reconstruction of special projects a. The project design agency puts forward the impact scope of the special facilities; b. The Project Coordination Office and the competent authorities of the special projects survey the quantity and degree of the affected special facilities; c. The Project Coordination Office authorizes the special departments to put forward a special facility reconstruction scheme according to the resettlement plan;

d. The Project Coordination Office consults with the special departments to determine the compensation rates and signs Special Facility Reconstruction Compensation Agreement; e. The special departments start special facility reconstruction; f. Various special facilities are put into operation.

9.2 Schedule

Land acquisition, house demolition and resettlement of the displaced persons of the Project will be carried out according to the schedule of the construction plan of the Project, and the specific schedule shall abide by the following principles: a. The demolition of the houses and attachment of the displaced persons shall be finished before the commencement of the construction of the Project; b. The displaced persons shall be informed on the house demolition at least 2 months in advance; c. Land acquisition shall be finished before the commencement of the construction of the Project; d. Land regulation and allocation shall be finished within the crop season shift duration as far as possible; e. Labor force arrangement shall be finished before land acquisition; f. The restoration and reconstruction of the special facilities shall be finished before the commencement of the construction of the projects. According to the overall schedule of the Project, the progress schedule for land acquisition and house demolition is determined in table 8-1.

Land Acquisition and House Demolition Progress Schedule of the Project Table 9-1 Item Central city river Northern area Central city rehabilitation water supply and sewage treatment project pipeline project intercepting sewer project

I. land acquisition The first phase of sewage plant construction has been finished 1. land acquisition One month after One month after target confirmation evaluation evaluation 2. preparation and 2-3 months after 2-3 months after survey of land evaluation evaluation acquisition

physical data 3. land acquisition 2-3 months after 2-3 months after compensation evaluation evaluation rates negotiation 4. payment for 2-3 months before 2-3 months before land acquisition commencement of commencement of compensation fees construction of the construction of the Project Project 5. land acquisition 1-2 months after 1-2 months after procedure land acquisition land acquisition handling compensation fees compensation fees payment payment II. production and The first phase of living restoration sewage plant construction has been finished 1. publication and 1-2 months after 1-2 months after mobilization, land evaluation evaluation acquisition and house demolition announcement, and policy and principle publication 2. land regulation 2-3 months before 2-3 months before of villager teams commencement of commencement of or compensation construction of the construction of the fees disbursement Project Project 3. individual 2-3 months before 2-3 months before compensation fees commencement of commencement of disbursement construction of the construction of the Project Project III. special facilities 3-4 months before 3-4 months before demolition and commencement of commencement of restoration construction of the construction of the Project Project IV. February, 2011 February 2011 January, 2011 commencement of construction of the Project V. resettlement 1-2 months before 1-2 months before staff training land acquisition land acquisition and house and house demolition demolition VI. internal Submit the monitoring report to the World Bank on a monitoring quarterly basis from the start of land acquisition and house arrangement demolition VII. resettlement One month after resettlement completion completion inspection

VIII. post- The comprehensive post-evaluation for the affected evaluation by the population is carried out 6 months after resettlement World Bank completion

10. Monitoring and Evaluation Mechanism In order to ensure the smooth implementation of the resettlement plan and to realize the objective of properly resettling the displaced persons, the regular monitoring and evaluation are carried out for the implementation of the land acquisition and resettlement in accordance with the requirements of the Involuntary Resettlement in the World Bank operational policy OP4.12 and the World Bank China Financed Project Resettlement Monitoring and Evaluation Operation Guidelines. The monitoring includes internal monitoring and external independent monitoring for resettlement agency; and the monitoring and evaluation start from January, 2010 and end in December, 2012. Internal monitoring report and external monitoring report on project construction progress schedule and resettlement progress schedule of all the subprojects will be submitted to the World Bank regularly biannually or annually. The details of internal monitoring and external monitoring are as follows:

10.1 Purpose of internal monitoring

Internal monitoring is an internal control means to conduct regular inspection to the implementation of resettlement according to the contents of the resettlement document and the resettlement plan, provide necessary feedback information so as to find out the possible problems as early as possible, take adjustment measures, and ensure the successful progress of the projects and achieve the resettlement objective. Internal monitoring for resettlement is necessary to ensure the living standard of the affected population to be improved or at least remain unchanged and ensure resettlement implementation to be consistent with the Resettlement Action Plan. The purpose of internal monitoring is to ensure the resettlement agencies at all levels to well perform their functions in the implementation of the Resettlement Action Plan of the Project, to protect the lawful rights and interests of the affected population and the smooth implementation of the Project, as well as to ensure all the resettlement agencies to resettle the displaced persons according the principles and time schedule of the Resettlement Action Plan; and all the responsible departments should monitor the work of the subordinate bodies thereof. Internal monitoring is under the general charge of Yunnan Province Environmental Protection Management Office of the World Bank Financed Projects and implemented by the Project Leading Group of Zhaotong Municipality, the PMO, the Land Administration Department as well as the

House Demolition Administration Office in coordination to ensure that the implementation units comply with the principles and the time schedule of the resettlement plan to implement land acquisition, house demolition and resettlement. Internal monitoring aims at urging the resettlement agencies to well perform their functions.

10.1.2 Methods and implementation procedure of internal monitoring

The PMO is responsible for internal monitoring of the impact and effect of the Resettlement Action Plan and assumes the internal monitoring work of the whole resettlement work under the help of the implementing agencies to ensure the units in charge to implement the contents of the Resettlement Action Plan according to the time schedule. During the implementation period, the PMO will collect data from the implementing agencies every two months and verify the data. New data will be supplemented in time on the basis of the census on the affected population to form a continuous information flow in a fixed manner to reach the purpose of continuous monitoring. 1. Carry out internal monitoring operation mechanism to inspect the resettlement activity; set up a basic data base for land acquisition, house demolition and resettlement; and monitor the whole resettlement preparation and implementation process; 2. During the implementation period, the resettlement agencies at all levels should set up a corresponding resettlement information base, dynamically update the information base according to the actual implementation status, and timely submit the activity records and implementation progress to the superior resettlement agencies progressively; in this way, continuous resettlement implementation monitoring can be maintained; 3. In the above monitoring operation mechanism, information table in fixed format will be formulated so as to form continuous information flow from village level to the Project Resettlement Management Office; Municipality and District Project Construction Leading Group Offices and Xiang (town, sub-district) Resettlement Work group are important parts of the internal monitoring system, both of which will be inspected and verified regularly.

10.1.3 Scope of internal monitoring

The PMO and the Resettlement Management Office are responsible for monitoring the following contents: Staffing, staff training, schedule and efficiency of implementing agencies in all districts Sufficiency and reasonability for participation in the consulting activity of the affected population in the preparation and implementation processes Compensation payment to the affected population Selection and allocation of new locations and houses Moving of the affected population Resettlement and restoration of the vulnerable groups Employment of the affected labor force Land regulation and allocation Restoration of infrastructure and public buildings Resettlement, restoration and compensation for the affected enterprises and public institutions Policy formulation and implementation of the resettlement plan Participation and consultation of the displaced persons in the implementation process Time schedule of the above work

10.1.4 Internal monitoring agency and staffing

Internal monitoring for the project land acquisition, house demolition and resettlement is under the general charge of Yunnan Province Environmental Protection Management Office of the World Bank Managed Projects and implemented by the Project Leading Group of Zhaoyang District, Zhaotong Municipality, the District Management Office of Foreign Funded Projects, the Land Administration Department of Zhaoyang District, Zhaotong Municipality as well as the Xiang and Town Resettlement Offices in coordination to ensure that the implementation units comply with the principles and the time schedule of the resettlement plan to implement land acquisition, house demolition and resettlement. Internal monitoring aims at urging the resettlement agencies to well perform their functions.

10.1.5 Responsibilities of the internal monitoring agency

The responsibilities of the internal monitoring agency are to enable the resettlement agencies to find out the problems and changes occurred during the resettlement process, so as to regulate the resettlement measures according to the problems and the changes to ensure the realization of the resettlement objective.

10.1.6 Cycle and reporting of internal monitoring

During resettlement implementation, the PMO will submit an internal monitoring report to the World Bank in each quarter and settle the problems in the resettlement and restoration activities together with the implementing agencies and adopt necessary measures to ensure the progress and quality of the resettlement. The first report should be submitted within the fourth month as of the date of the implementation, and after resettlement implementation is completed, internal monitoring result on the remaining matters in the resettlement will be reported to the World Bank before 31, January of each year.

10.2 Purpose of external monitoring

External independent monitoring and evaluation is mainly the regular independent monitoring and evaluation on the land acquisition, house demolition and resettlement activities by the independent monitoring agency. External independent monitoring includes: the functions of resettlement network; land acquisition and house demolition, resettlement schedule and compensation; resettlement and restoration of replaced persons, stores, enterprises and public institutions; and survey and analysis of production and living standard of the displaced persons. Independent monitoring is carried out by units independent of the resettlement agencies of the Project for the evaluation on land acquisition, house demolition and resettlement and inspection on all implemented activities in a comprehensive long-term perspective. The independent monitoring agency will follow up the resettlement activities of the Project to judge whether the resettlement is in accordance with the relevant laws over land acquisition and resettlement in China and the correlated requirements of the Involuntary Resettlement in the World Bank operational policy OP4.12, and whether the production and living standard of the displaced persons are improved or at least maintain at the current level. The independent monitoring agency will make suggestions to the relevant implementation units according to the problems found in the monitoring process to timely settle the problems arising from the resettlement implementation process.

10.2.1 External monitoring agency and staff

The Project House Demolition Management Office selects from the enlist tenders an experienced agency with high ability and being familiar with the preliminary work of resettlement as the independent monitoring agency.

Featuring rich experiences in resettlement planning in similar projects and strong work team, SYU China Ethnic Group Center has the competence and capability to be an independent monitoring agency. Meanwhile, the CCCC at SYU also assumes the works of social impact evaluation at the preliminary stage and resettlement planning and knows very well about the work procedure and progress of the resettlement at the preliminary stage, which is quite favorable for external monitoring of resettlement implementation.

10.2.2 Responsibilities of the external monitoring agency

As the independent third party for the resettlement of the Project, the independent monitoring agency evaluates the operational situations and resettlement effects for the resettlement, predicts the possible problems arising from the realization of the Resettlement Action Plan, puts forward selectable action schemes, assists the resettlement agencies to realize the objective of the Resettlement Action Plan, and ensures the positive effects of the affected persons in the process of the production and living restoration. The independent monitoring agency takes the resettlement documents of the Project as basis, monitors and evaluates the following: The functional operation of the resettlement agency network and its suitability. The suitability of the change and restoration degree of the living standard of the affected persons. The suitability of the affected persons to the new life.

10.2.3 Methods and procedure of external monitoring

Independent monitoring will be carried out in the following four aspects: 1. Baseline survey of the living standard of the affected population During resettlement implementation, survey all aspects of production and living of the affected population to provide basic data for the later evaluation on the resettlement efficiency and effect, and at the same time, publicize the function and task of the independent monitoring agency among the affected population to set up a network channel for contact of the affected population. Baseline survey is done through sampling, with the proportion of various types of affected population as follows: z The proportion of the affected households (normal) is 10%; z The proportion of the affected stores is 25%; z The proportion of the affected enterprises and public institutions is 10%; z The proportion of the vulnerable groups is 25%; The same households should be interviewed in follow up survey as the baseline survey.

2. In the practical implementation process of land acquisition and house demolition, send out special monitoring personnel to carry out continuous monitoring on the site so as to find out the possible problems and settle the problems.

Resettlement Independent Monitoring Report Table

Address and Problem Settlement No. Name Remarks contact description measures 1 2 3 4 5 6 7 Recorder: Date:

3. Regular return visit and follow up survey The independent monitoring agency will pay regular return visits to the affected population after the implementation of land acquisition and house demolition to get to know the resettlement policy implementation, income of the residents and living improvement or at least restoration and to find out the existing problems, and report timely to the Project Resettlement Management Office. Regular return visits and follow up survey are accomplished in the following ways: a. Understanding of the internal monitoring reports of the resettlement agencies at all levels. b. On-site visits to the resettlement agencies at all levels, focusing on the following points: Staffing of the agencies and whether the staff reaches the qualification for the work; Whether the necessary working conditions of the resettlement agencies reach the requirement; Whether the resettlement agencies comply with the process and requirement stipulated in Resettlement and House Demolition Action Plan; Handling of the problems arising from the resettlement by the resettlement agencies in their regions; Resettlement information management and updating by the resettlement agencies in their regions;

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c. Door-to-door interview. The independent monitoring agency will conduct in-depth face-to-face interview with the affected residents to get to know the process of the resettlement work and to listen to the complaints, discontentment and suggestions of the residents. Door-to-door interview will be generally carried out on a monthly basis independently by the independent monitoring agency without the accompany of the personnel from the local resettlement agency or the local administrative personnel after obtaining a name list and relevant information of the affected population from the grassroots institutions. In the door-to-door interview, the working staff is relatively stable, namely, one staff member interviews the same affected area for a plurality of times as much as possible. This is good for easily establishing mutual trust between the affected population and the interviewer and good for the progress of the work. d. FGD. In the regions with concentrated affected population, the independent monitoring agency will hold FGD to hear the opinions of the affected population on the major problems of the impact of the Project. The FGD can be formal or informal and personnel from the grassroots institutions can be invited to participate or not, all depending on the specific situations. e. On-site observation. Working personnel from the independent monitoring agency will pay visits to the resettlement sites both regularly and irregularly to observe the resettlement state on the site. f. Case study. The possible exceptional cases appeared in the resettlement process will be focused on to analyze the root cause, to work out the method for settling the problem and to put forward suggestions for reference. g. Questionnaire survey. Sampling of the questionnaire survey is carried out to collect the opinions on the production, living restoration and resettlement of the displaced persons, and the result is analyzed in time to solve the existing problems, which provides reference for the resettlement work in the next year. h. Post-evaluation survey. A comprehensive post-evaluation follow up survey is done to the affected households and stores six months after the completion of the resettlement work to collect the information on restoration of all aspects of production and living of the affected population. The same with the baseline survey, the post-evaluation survey is done through sampling, with the same sampling proportion, and the respondents of the post-evaluation survey are the same with those in the baseline survey as far as possible.

10.2.4 Scope of external monitoring

The external independent monitoring and evaluation agency will investigate the resettlement and the living standards of the affected people and implement all the monitoring and evaluation work by providing technical

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assistance to the project office according to the provisions. — The independent monitoring agency will carefully monitor the house demolition, compensation and resettlement of the affected households. — Make follow up and monitoring records until the end of housing resettlement. — Monitor the resettlement funds. — Conduct site survey and sample survey of displaced people during Project implementation. — Conduct follow up type socio-economic survey and living standard survey upon completion of the Project and make comparative study of the basic living guarantee. — Monitor the project land acquisition, including: (1) Land acquisition procedures; (2) Confirm optional channels for employment of affected rural labor force; (3) The implementation of land acquisition agreements and appeal cases of the displaced people. — Monitor the production resettlement of the affected enterprises. — Monitor the affected shops and their profitability. — Monitor the progress and quality of resettlement housing construction and relocation and reconstruction of public facilities. — Monitor the adequacy and rationality of public consultation and participation. — Evaluate the fund appropriation and allocation, use plans and effects. — Be responsible for the technical guidance and census data compilation of the affected residents, shops and enterprises, and submit the census report to the Municipal Resettlement Office. According to the characteristics of resettlement of the Project, the scope independently monitored under the Project can be divided into three different categories based on different resettlement objects: 1. For family households involved in the house demolition, the independent monitoring agency monitors the key contents: • Whether or not the housing compensation rates are carried out in accordance with the standards set in the Resettlement Action Plan; • Whether to offer a variety of resettlement means for the affected households to choose; • Whether the selection of resettlement sites is based on the wishes of the affected population; • Whether the compensation fees payment process by means of monetary compensation is transparent to the public; • Whether the house site policy for the affected rural households is implemented or not; • Whether the transition subsidy and moving subsidy during house demolition is implemented;

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• Whether the special policy for vulnerable groups is implemented or not; • Whether the demolition of temporary buildings and illegal buildings complies with the provisions of the Resettlement Action Plan; • Whether the time schedule of the house demolition process is reasonable and appropriate; • Whether the interests of house owners and lessees are taken into consideration; • Whether the public facilities and services of the resettlement locations are taken into account; • The handling information about opinions and suggestions of the affected population. 2. For the affected enterprises and private shops, the key elements of independent monitoring are: • Whether the reasonable compensation is implemented in accordance with the principle of replacement cost; • Whether the lost wages and profits of enterprises are compensated in accordance with the provisions of the Resettlement Action Plan; • Whether moving subsidies of enterprises and shops are compensated; • Whether resettlement locations of enterprises and shops are consulted and planed; • The production restoration situation of enterprises and shops; • The handling situation of dissatisfaction and complaints of the enterprises and shops; • Whether the benefits of the owners and lessees of the enterprises and shop are considered. 3. The key contents for the resettlement monitoring of the land acquisition and occupation of rural collective land of the affected population are: • Whether the land compensation fees are implemented according to the standard rate of the Resettlement Action Plan; • Whether resettlement subsidies of the agricultural population are implemented in accordance with relevant standards; • Time and scheme of land regulation; • Labor resettlement methods; • Payment of land compensation fees; • Payment of young crop fees and compensation fees for land attachments; • Problems handling of roads and water systems brought by land acquisition; • Other complaints handling.

10.2.5 Reporting system of external monitoring

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A. Submission of independent monitoring and evaluation reports From the beginning of house demolition activities to the end of the activities, the independent monitoring agency shall submit a monitoring and evaluation report to the project owner every two months, and submit a monitoring and evaluation report o the World Bank (through the environmental construction PMO) every six months. The reports shall be submitted by the end of every six months. The independent monitoring agency shall submit an investigation report to the World Bank (through the environmental construction PMO) after each base investigation and follow-up survey. B. Follow-up actions after reports The environmental construction project company of the World Bank will discuss with the independent monitoring agency and other relevant agencies to raise the follow-up scheme to the confirmed problems in monitoring and evaluation after the independent monitoring agency submits each monitoring and evaluation report. Each monitoring and evaluation report includes: • Report on solutions to problems confirmed in the previous report, and implementation situations and effects of the measures. • Report on follow-up actions of all relevant agencies after the discussion of the previous report.

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11. Entitlement Matrix

All units and individuals affected by the Project will enjoy the following entitlements. Please see Table 11-1 for details. Entitlement matrix of bundled subprojects in Yunnan urban environmental construction for displaced persons Table 11-1 Quantity of Compensation rates institutions and Affected Affected individuals that Enjoyed policies on land acquisition, house Sub-district/Town type object enjoy demolition and resettlement Rates of the Project compensation rights 1,480 people 1. The project construction acquires land, the Land compensation fee: out of 329 village teams involved in the land acquisition 26,800 yuan/mu, resettlement Land Contract households in will get land compensation fees and Longquan sub- subsidy: 40,200 yuan/mu, acquisitio or 11 village teams resettlement subsidy paid by the land district Young crop compensation fee: n of 5 acquisition unit; the households involved in the 1,150 yuan/mu, 68,150 communities areland acquisition will obtain the young crop fees yuan/mu in total affected and compensation fees for the ground attachments; besides, if land regulation or development and use is carried out within the Land compensation fee: village teams, the households involved in the 23,200 yuan/mu, resettlement subsidy: 34,800 yuan/mu, land acquisition reacquire the land or other Taiping sub-district capital goods, the land compensation fees and Young crop compensation fee: resettlement subsidy will be administrated and 1000 yuan/mu, 59,000 used collectively by the village teams; on the yuan/mu in total contrary if there’s no condition for the village to

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contrary, if there’s no condition for the village to undergo land regulation or development and use and the households obtain no capital goods, the village teams shall allocate the resettlement subsidy to the households Land compensation fee: involved in the land acquisition; and the land 28,000 yuan/mu, resettlement compensation fees are administrated and used Fenghuang sub- subsidy: 42,000 yuan/mu, collectively by holding a villagers’ district Young crop compensation fee: representative conference to decide the 1,300 yuan/mu, 71,300 allocation and use of the compensation fees. yuan/mu in total 2. The compensation fees and resettlement subsidy for project construction land acquisition are mainly used for displaced persons to restore production and living, such as building of farmland irrigation facilities, rural infrastructure reform and agricultural restructuring. 3. The compensation rates for land acquisition of the sub-districts according to practical situation, location, land use type, land capacity, per capita area of cultivated farmland and economic development level are shown in the right columns Temporary land used for construction will be Longquan sub- compensated by 1,500 yuan/mu/year and paid , 3,933 people district, Taiping Temporary land occupation Tempora a recultivation fee of 5,000 yuan/mu at one- Contract out of 874 sub-district, fees: 1,500 yuan/mu ry land time. The compensation fee for temporary land or households in Fenghuang sub- Recultivation fees: 5,000 use is for 1 year. The recultivation will be done by 20 villages district, Beizha yuan/mu the farmer or by the construction organization Town, Jiupu and then delivered to the farmer.

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Longquan sub- Fruit trees: Class 1 90 The owners of the fruit trees need to be cut district, Taiping yuan/per tree, Class 2 50 Fruit Property down or transplanted because of the project sub-district, 15 villages yuan/per tree, young tree 15 trees owner construction will get cash compensation or Fenghuang sub- yuan/per tree transplanting fees. district, Beizha Town, Jiupu The Central City River rehabilitation project involves Rural houses: frame 736 demolished All houses and attachments will be Losses Owners yuan/m², masonry-concrete houses of compensated by replacement price, of of Longquan sub- 673 yuan/m², masonry-timber 10,417.65m², depreciation is not deducted, and the utilizable demolish institution district, Taiping 420 yuan/m², earth-timber 370 affects 604 materials of the old house belong to the ed al, sub-district, yuan/m², crude house 100 people out of replaced households; implement new living houses collective Fenghuang sub- yuan/m² 134 replaced land for replaced households; and provide and and district, Beizha Urban houses: 2800 households moving subsidy for displaced persons. attachmeindividual Town, Jiupu yuan/m²,including 1000 yuan/ including 2 The compensation rates are shown in the right nts houses m²,1800 yuan/ m² land on enterprises and columns: which the house built public institutions and 1 collective house All the Compensation fees for Individua relevant Provide appropriate leasing shops on individual businesses include l people: commercial street for individual businesses that property compensation for self- business owners need relocation, and compensate on losses owned shops, moving subsidy es and from suspension and moving and suspension loss fees. The employe moving subsidy is calculated

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es by 1,000 yuan/household, the suspension loss fee is calculated by 1,000 yuan per household per month for 3 months temporarily. The differences on house decoration, area, location and industry among individual businesses shall also be considered to negotiate with the individual businesses for appropriate compensation rates Telecommunicat All special facilities that are affected by the ion, electric project will be relocated and rebuilt according power, to actual situation to restore their original Special Property broadcasting functions. The PMO will invest according to the facilities owner and TV, and restoration plan and determine the water supply compensation fees through negotiation with the and sewage special facility administration departments. companies Affected production and living facilities shall be Producti Facilities Transformer, maintained or repaired during the construction on and owner or temporary by the construction organization. Normal use of living unit bridge the facilities shall be guaranteed during the facilities construction.

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Attachment: Terms of Reference for External Resettlement Monitoring of Zhaotong Central City Environmental Construction Project

China Cross-cultural Consulting Center, Sun Yat-sen University

I. Background of the Project

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Zhaotong Municipality governs one district, 10 counties and 143 Townships/towns. In 2008, the municipality’s total population was 5.495 million, ranking third in the province. The municipality’s GDP attained 27.23 billion yuan, ranking seventh in the province. Local general budgetary revenue was 1.71 billion yuan, up 32.9%, ranking seventh in the province; general budgetary expenditure was 8.83 billion yuan, up 40.03%, ranking fourth in the province; per capita farmers’ net income was 2,116 yuan, ranking 14th in the province. With a year-end urbanization rate of 17.7%, the municipality is one of the fast urbanized regions in the province. In order to relieve the conflict between urban infrastructure construction and environmental protection and socioeconomic development, the municipal and district governments have proposed the Zhaotong Central City Environmental Construction Project based on a comprehensive study, and included it in the Yunnan Urban Environmental Construction Project, one of the World Bank financed alternative programs approved by the State Council. The Project consists of three subprojects: (1) northern area water supply and pipeline project, in which a waterworks will be built to solve the difficulty in drinking water for the urban population; (2) central city sewage treatment and intercepting sewer project, designed to alleviate the pollution of domestic sewage and industrial wastewater of the Central City residents to the urban environment and downstream water bodies; and (3) central city river rehabilitation project, which will subject urban river segments to integrated management, protect the environment, eliminate potential hazards, improve the image of Zhaotong Central City comprehensively, and create favorable conditions for the sustainable economic development of Zhaotong Municipality. Since the Project involves land acquisition and house demolition, it is necessary to conduct effective monitoring in accordance with the resettlement regulations of the World Bank.

II. Purpose of external monitoring External independent monitoring and evaluation is mainly the regular independent monitoring and evaluation on the land acquisition, house demolition and resettlement activities by the independent monitoring agency. External independent monitoring includes: the functions of resettlement network; land acquisition and house demolition, resettlement schedule and compensation; resettlement and restoration of replaced persons, stores, enterprises and public institutions; and survey and analysis of production and living standard of the displaced persons. Independent monitoring is carried out by units independent of the resettlement agencies of the Project for the evaluation on land acquisition, house demolition and resettlement and inspection on all implemented activities in a comprehensive long-term perspective. The independent monitoring agency will follow up the resettlement activities of the Project to judge whether the resettlement is in accordance with the relevant laws over

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land acquisition and resettlement in China and the correlated requirements of the Involuntary Resettlement in the World Bank operational policy OP4.12, and whether the production and living standard of the displaced persons are improved or at least maintain at the current level. The independent monitoring agency will make suggestions to the relevant implementation units according to the problems found in the monitoring process to timely settle the problems arising from the resettlement implementation process.

III. Scope of external monitoring The external independent monitoring and evaluation agency will investigate the resettlement and the living standards of the affected people and implement all the monitoring and evaluation work by providing technical assistance to the project office according to the provisions. — The independent monitoring agency will carefully monitor the house demolition, compensation and resettlement of the affected households. — Make follow up and monitoring records until the end of housing resettlement. — Monitor the resettlement funds. — Conduct site survey and sample survey of displaced people during Project implementation. — Conduct follow up type socio-economic survey and living standard survey upon completion of the Project and make comparative study of the basic living guarantee. — Monitor the project land acquisition, including: (1) Land acquisition procedures; (2) Confirm optional channels for employment of affected rural labor force; (3) The implementation of land acquisition agreements and appeal cases of the displaced people. — Monitor the production resettlement of the affected enterprises. — Monitor the affected shops and their profitability. — Monitor the progress and quality of resettlement housing construction and relocation and reconstruction of public facilities. — Monitor the adequacy and rationality of public consultation and participation. — Evaluate the fund appropriation and allocation, use plans and effects. — Be responsible for the technical guidance and census data compilation of the affected residents, shops and enterprises, and submit the census report to the Municipal Resettlement Office. According to the characteristics of resettlement of the Project, the scope independently monitored under the Project can be divided into three different categories based on different resettlement objects: 2. For family households involved in the house demolition, the independent monitoring agency monitors the key contents:

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• Whether or not the housing compensation rates are carried out in accordance with the standards set in the Resettlement Action Plan; • Whether to offer a variety of resettlement means for the affected households to choose; • Whether the selection of resettlement sites is based on the wishes of the affected population; • Whether the compensation fees payment process by means of monetary compensation is transparent to the public; • Whether the house site policy for the affected rural households is implemented or not; • Whether the transition subsidy and moving subsidy during house demolition is implemented; • Whether the special policy for vulnerable groups is implemented or not; • Whether the demolition of temporary buildings and illegal buildings complies with the provisions of the Resettlement Action Plan; • Whether the time schedule of the house demolition process is reasonable and appropriate; • Whether the interests of house owners and lessees are taken into consideration; • Whether the public facilities and services of the resettlement locations are taken into account; • The handling information about opinions and suggestions of the affected population. 2. For the affected enterprises and private shops, the key elements of independent monitoring are: • Whether the reasonable compensation is implemented in accordance with the principle of replacement cost; • Whether the lost wages and profits of enterprises are compensated in accordance with the provisions of the Resettlement Action Plan; • Whether moving subsidies of enterprises and shops are compensated; • Whether resettlement locations of enterprises and shops are consulted and planed; • The production restoration situation of enterprises and shops; • The handling situation of dissatisfaction and complaints of the enterprises and shops; • Whether the benefits of the owners and lessees of the enterprises and shop are considered. 3. The key contents for the resettlement monitoring of the land acquisition and occupation of rural collective land of the affected population are: • Whether the land compensation fees are implemented according to the standard rate of the Resettlement Action Plan;

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• Whether resettlement subsidies of the agricultural population are implemented in accordance with relevant standards; • Time and scheme of land regulation; • Labor resettlement methods; • Payment of land compensation fees; • Payment of young crop fees and compensation fees for land attachments; • Problems handling of roads and water systems brought by land acquisition; • Other complaints handling.

IV. Activities of external monitoring 1. Baseline survey and follow-up survey Baseline survey and follow-up survey are one of the main is one of the main methods that measure living standard variations of the affected people. For the living standard survey, the independent agency should do the following: (1) Questionnaire design and testing Qualitative and quantitative questionnaire surveys are used to monitor living standard variations of the affected people taking local material and cultural factors into account. The questionnaire designed should be tested practically to observe its effectiveness and make improvement. (2) Training of investigators The improved questionnaire is used to train the investigators so that they understand the intention, methods and basic skills of the survey. (3) Edition and coding of survey results The leader of the survey team is responsible for supervising the work of the investigators, and verifying, editing, sampling and filing all completed questionnaires on the date of completion. (4) Sampling of the affected people The set sampling rates are as follows by reference to general surveys: z Affected households (ordinary): 20%; z Affected stores: 25%; z Affected enterprises and public institutions: 10 %; z Vulnerable groups: 25% 2. Informal visit In the informal visit of the affected people, observation methods are used to make up and correct defects of the formal visit. The specific methods include discussion of primary stakeholders, door-to-door interview, interview of experts familiar with local customs, and field observation of participants and the resettlement process. 3. Public consulting meeting The CCCC at SYU will hold public consulting meetings with affected people of different types and areas periodically. At each meeting,

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representatives of vulnerable groups are invited, especially women. By monitoring such meetings, the independent monitoring agency will collect information and evaluate the following: z Participation of the affected people; z Issues of concern of the affected people and effectives of implementation; z How much do the affected people understand the restoration measures, and the practical effects of the restoration measures; z Other wills and needs of the affected people The CCCC at SYU will report results of public participation and consultation activities to the World Bank timely. During resettlement, a special chapter will be used to report public participation and consultation activities in the monitoring and evaluation report submitted in writing. 4. Complaints A complaint handling team will be set up under the independent monitoring agency, the CCCC at SYU. This team will start work two weeks before the compensation and resettlement agreement is signed, and set up a hotline and a mailbox to receive complaints from the affected people. The CCCC at SYU will also make a spot check and follow up how some complaints are handled and the satisfaction level of appellants based on complaint records, and give corrective advice when necessary to facilitate the working process.

V. Monitoring indicators According to the purpose of external resettlement monitoring and evaluation, and the practical situation of the subprojects, the project team of the CCCC at SYU has designed a set of monitoring indicators: 1. Resettlement organization z Consistency of resettlement activities with the resettlement policy; z Management, internal controls and their appropriateness of the resettlement organization z Accuracy of internal monitoring reporting 2. Resettlement progress z Timeliness of preparation and adequacy of resettlement sites and compensation fees z Timeliness of relocation of the affected people and progress z Rationality and timeliness of compensation for the affected people and entities z Rationality of house allocation (including resettlement sites, house floors and area, etc.) 3. Production and livelihood restoration z Restoration of vulnerable groups, especially the affected people z Relocation, replacement and reconstruction of infrastructure z Production of the affected enterprises z Use of compensation fees the affected farmers

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z Timeliness of provision of other agreed subsidies (e.g., traffic and moving subsidies, subsidies for income or wage losses) 4. Other z Adequacy and rationality of public participation and consultation z Response to and solution of complaints of the affected people

VI. Implementation staff of independent monitoring The CCCC at SYU is headed by Prof. Zhou Daming with many years of experience in demographic census and project monitoring, and has a number of experts, scholars and professionals (including several female workers) in sociology, anthropology, economics, auditing and engineering. The CCCC at SYU is also capable of data management, statistical analysis, benefit assessment and social assessment, and experienced in qualitative survey.

VII. Submission of monitoring and evaluation reports During resettlement implementation, the CCCC at SYU will submit a monitoring and evaluation to the World Bank every 6 months. The first report will be submitted to the World Bank in the 7th month after the starting date of implementation. After every baseline or follow-up survey, the CCCC at SYU will submit a survey report to the Zhaoyang District PMO and the World Bank (through the Zhaoyang District PMO).

VIII. Follow-up actions after reporting After the CCCC at SYU submits each monitoring and evaluation report, the Zhaoyang District PMO will discuss and propose follow-up actions for the issues verified in the monitoring and evaluation report with the independent monitoring agency and other agencies concerned. Every monitoring and evaluation report will cover: z Solutions to the issues verified in the previous report, how they are implemented and how effective they are; z Follow-up actions taken by the agencies concerned after the previous discussion

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Attachment: External resettlement monitoring and evaluation forms of the CCCC at SYU

Statistics of information of resettlement staff (Monitoring Form 1) Agency: Function: Closing date: MM/DD/YY Planne Actual d Nam Educatio Positio starting Time of Training Sex Age Title Dept. startin e n n (post) time of transfer attended g time work of work

Information of resettlement agency (Monitoring Form 2) Closing date: MM/DD/YY Agency: Address: Date of Role in the Project: foundation: Personnel quota: Actual Percent of staff in place: workforce: Quality of staff: Junior college Bachelor’s Master’s Doctor’s Other Total degree degree degree People Percen People Percen People Percen People Percen People Percen People Percen t t t t t t

Junior title Intermediate Senior title Other Total title People Percen People Percen People Percen People Percen People Percent t t t t

Training information Training time Scope of training Participan Examine Pass rate Excellenc ts es e rate

Additional information

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Notes: 1. Fill in Owner, resettlement implementing agency or independent external monitoring agency, etc. in “Role in the Project”. 2. “Pass rate” in “Training information” means the ratio of those receiving a score of 6 0 to all examinees; and “Excellence rate” means the ratio of those receiving a score of 8 0 to all examinees.

Summary of information of resettlement agency (Monitoring Form 3) Closing date: MM/DD/YY Role in Percent Training Date of Personnel Actual Agency Address the of staff sessions Remarks foundation quote workforce Project in place attended

Statistics of information disclosure, and public participation and consultation (Monitoring Form 4. 5)

Agency: Co- Organized Target Time Location Activity Details organized Form Remarks by group by

Notes: 1. Items: project information; resettlement policies, regulations and procedures; project design; resettlement plan; appeal channel;

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satisfaction survey; policies, regulations and procedures of departments concerned; general; other 2. Activity forms: TV; radio station; newspaper; brochure; other 3. Target group: general; rural displaced persons; urban displaced persons (residential); urban displaced persons (non-residential); resettlement house supplier; village committee; vulnerable groups; organization concerned (resettlement); department concerned

Statistics of mode of settlement (Monitoring Form 6) Unit: household Mode of resettlement Suburban Nearby resettlement Income resettlement Type level Compensation High Medium Low High Medium Low grade grade grade grade grade grade site site site site site site High Medium Residential Low house for Vulnerable own use Subtotal Percent 100% High Medium Residential Low house for Vulnerable rent Subtotal Percent 100% High Non- Medium residential Low house for Vulnerable own use Subtotal Percent 100% High Non- Medium residential Low house for Vulnerable rent Subtotal Percent 100%

List of adjustments to the RAP (Monitoring Form 7) Closing date: MM/DD/YY A o c a d T T c

p Unit price Quantity Amount j i i u u m m p s r r Adjustment Adjustment Adjustment r e e t o m e Term Term Term Term Term v o o n Unit of current Unit of current Unit of current e a f f c beginning end beginning end beginning n l

e period period p t

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Complaint record form (Monitoring Form 8) Contact Appellant Age Sex Address info Mode Type of Date of appeal appeal

Details of appeal:

Owner of appellee (in Employee ID Appellee case of natural No. of appellee person) Time of Contact Replier Agency Dept. reply info

Details of reply:

Time Reviewed Result of of by review review Notes: 1. If the appellee is an entity, “Owner of appellee” and “Employee ID No. of appellee” will be omitted. 2. Fill in telephone/letter/website/personal visit/consulting meeting/other in “Mode of appeal”. 3. Refer to the survey items in the satisfaction survey form for Type of appeal. 4. Fill in satisfied/fairly satisfied/neither, nor/not satisfied/preparing for further appeal/unreasonable appeal in “Result of review”.

Statistics of complaints and appeals (Monitoring Form 9) From MM/DD/YY to MM/DD/YY Longquan Taiping Fenghua Beizha Jiupu Shouwa

Sub- Sub- ng Sub- Town Town ng

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district district district Xiang

I. I 1. Project overview n f

Type o 2. Resettlement r of m policies & a appea t regulations i o

l n 3. Issues related to d

i own rights & s c

l interests o

s 4. Resettlement u r

e activity info (forum, p

l consulting meeting) a

n 5. Complaint and

appeal method 1. Consulting

meeting

P Organizing

b procedure l i c Arrangements p

a Quality of staff r t i

c Q&A i p 2. Forum a t i

o Organizing

n procedure a

n Arrangements d

c Quality of staff o

n Q&A s u 3. FGD l t a

t Organizing i

n procedure Arrangements Quality of staff Q&A 1. Working attitude

of relocation staff

R 2. Professional e

s proficiency of e

t relocation staff t l e

m 3. Selection of

e resettlement house n

t 4. Timely payment p r

o of compensation c

e fees s

s 5. Service attitude

at window 6. Service level at

window

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7. Convenience of operational

procedure at window

C 1. Attitude of

m reception staff a p p 2. Attitude of reply l p a e i

n staff a t l

a 3. Effect of reply n

d 4. Timeliness of

reply 3. Effect of reply 4. Timeliness of

reply Other II. Timely Perio 1-3 days d of 3-7 days reply Over 7 days III. Satisfied Resul Fairly satisfied t of Neither, nor appea Not satisfied l Preparing for further appeal revie w Unreasonable appeal Note: This form is divided into a general form and classified forms. To complete a classified form, the criterion of classification should be filled in, such as age group.

Satisfaction survey form (Monitoring Form 10) Interviewee: ID card No.: I. Information Main Main Degree disclosure source of source of Know Don’t Clear Aware Other plan info 1 info 2 little know 1. Project

overview 2. Resettlement

policies & regulations 3. Issues related to own

rights & interests 4. Resettlement activity info (forum,

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consulting meeting) II. Public participation and consultation 1. Consulting meeting Organizing procedure Arrangements Quality of staff Q&A 2. Forum Organizing procedure Arrangements Quality of staff Q&A 3. FGD Organizing procedure Arrangements Quality of staff Q&A III. Resettlement process 1. Working attitude of relocation staff 2. Professional proficiency of relocation staff 3. Selection of resettlement house 4. Timely payment of compensation fees 5. Service attitude at window 6. Service level at window 7.

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Convenience of operational procedure at window IV. Complaint, Degree Not appeal and Contacted Fairly Not Not contacted Satisfied Other consulting satisfied satisfied concerned 1. Attitude of reception staff 2. Attitude of reply staff 3. Effect of reply 4. Timeliness of reply

Statistics of satisfaction with resettlement (Monitoring Form 11) From MM/DD/YY to MM/DD/YY Completed by: Main Degree I. Information Main Inter- source disclosure source Know Don’t viewees of info Clear Aware Other plan of info 1 little know 2 1. Project overview 2. Resettlement policies & regulations 3. Issues related to own rights & interests 4. Resettlement activity info

(forum, consulting meeting) 5. Complaint and appeal method II. Public Main Degree Main participation Inter- source Not source Satisfie Fairly Not and viewees of info concern Other of info 1 d satisfied satisfied consultation 2 ed 1. Consulting meeting Organizing

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procedure Arrangements Quality of staff Q&A 2. Forum Organizing procedure Arrangements Quality of staff Q&A 3. FGD Organizing procedure Arrangements Quality of staff Q&A III. Resettlement process 1. Working attitude of relocation staff 2. Professional proficiency of relocation staff 3. Selection of resettlement house 4. Timely payment of compensation fees 5. Service attitude at window 6. Service level at window 7. Convenience of operational procedure at window

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IV. Main Degree Main Complaint, Interview source Not source Satisfie Fairly Not appeal and ees of info concern Other of info 1 d satisfied satisfied consulting 2 ed 1. Attitude of reception staff 2. Attitude of reply staff 3. Effect of reply 4. Timeliness of reply

Analysis of time consumed in different resettlement steps (Monitoring Form 12) Duration: from MM/YY to MM/YY Unit: ___ days ___ hours Longquan Taiping Fenghuang Beizha Jiupu Shouwang Item Sub- Sub- Sub-district Town Town town/Xiang district district Fact-finding

survey Contract

negotiation Class 1 Class Contract 2 Class 3 Contract

payment Handling of

appeals Notes: 1. The working period is calculated from receipt of the job specification by the staff to completion by the staff and transfer to the next step. 2. In case of installment payment under the contract, each installment will be calculated separately.

Analysis of difference between planned and actual (Monitoring Form 13) Project: Reporting period: From MM/DD/YY to MM/DD/YY Non- Non- Residential Residential residential residential Item house for house for Rural house for house for own use rent own use rent

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Planned Planned in Planned in Planned in Planned in in this this stage: this stage: this stage: this stage: stage: Actual in Actual in Actual in Actual in Actual this stage this stage this stage this stage in this stage Households People Amount of Demolished demolition building area (m2) Number of resettlement Use of houses resettlement Building area houses of resettlement house (m2) Quantity of Villages land Area (mu) acquisition Amount of and compensation compensation (yuan/mu) Trees Amount of compensation Completion of (yuan/tree) trees and Structures structures (m2) Amount of compensation (yuan/m2) Length (m) Completion of Amount of pipelines compensation (yuan/m) Prepared by:

Analysis of resettlement quality across sub-districts/towns/Townships (Monitoring Form 14) Longquan Taiping Fenghuang Beizha Jiupu Shouwang Item Sub- Sub- Sub-district Town Town Xiang district district Resettlement Times of security information measures disclosure Times of public participation & consultation

126

Appeals

received

Information disclosure plan Public Satisfaction participation & with consultation resettlement Resettlement

process Appeal Fill in the ratio “Planned in this stage: Actual in this stage” below Households r P

e Progress People r s o e of house Demolished g t t r l

e demolition

e building s m 2

s area (m ) e o n

f Progress Villages t of land Area (mu) acquisition

127 128