Resettlement Planning Document

Resettlement Plan for Qingxiushan Park Ecological Upgrading Subproject Document Stage: Final Project Number: 37596 February 2006

PRC: Guangxi Nanning Urban Environmental Upgrading Project

Prepared by Qingxiu Mountain Scenic & Tourist Resort Development Co. Ltd

The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

ASIAN DEVELOPMENT BANK

RESETTLEMENT PLAN

QINGXIUSHAN PARK ECOLOGICAL UPGRADING SUBPROJECT

OF

GUANGXI NANNING URBAN ENVIRONMENTAL UPGRADING PROJECT

IN THE

PEOPLE'S REPUBLIC OF CHINA

QINGXIU MOUNTAIN SCENIC & TOURIST RESORT DEVELOPMENT CO. LTD

FEBRUARY 2006

iii

Letter of Commitment

Asian Development Bank,

The People’s Government of Nanning City has applied for a loan, through Ministry of Finance of the People’s Republic of China, from Asian Development Bank to finance this sub-project. Therefore, it must be implemented in compliance with the guidelines and policies of Asian Development Bank for social sectors. This Resettlement Plan is in line with the key requirement of Asian Development Bank and will constitute the basis for land acquisition, house demolition and resettlement of the sub-project. The plan also complies with the laws of the People’s Republic of China and local regulations, as well as with some additional measures and the arrangements for implementation and monitoring for the purpose of achieving better resettlement results.

The People’s Government of Nanning City hereby confirms the contents of this Resettlement Plan, and guarantees that budget as set in the Resettlement Plan will be covered by the total project budget and be made available on time. The People’s Government of Nanning City has discussed the draft Resettlement Plan with relevant units that have confirmed their acceptance, and authorizes Nanning Resettlement Management Office for ADB Financed Projects as the responsible agency to generally manage the implementation of the project and related resettlement activities, and the Governments of concerned Urban Districts to be responsible for implementation of the project and related resettlement activities within the respective Urban Districts.

The Mayor of the People’s Government of Nanning City

______(signature) ______(date)

Definition of Working Terms for RP

This Resettlement Plan is formulated on the basis of the laws, regulations and policies of the People’s Republic of China, Guangxi Zhuang Autonomous Region. It is also based on the regulations of Nanning city as well as the ADB’s policy on involuntary resettlement. The target is, through the action plans for resettlement and restoration, to benefit the affected people, improve their living standard and, and at least to restore their production and livelihood after the completion of the project. Land and other assets on land to be acquired by the project will cause negative effects on the people who live on the land. Affected Persons (APs) are defined as those whose production and life are under the negative effects of the project due to land acquisition and house demolition. They are: (1) The people whose land (including the house land, land used for public facility, as well as land for agriculture, forestry, animal husbandry, fisheries and sidelines), buildings (private houses and attachment, enterprise’s houses or public buildings etc.) of their ownership or other properties are temporarily or permanently acquired and occupied. (2) The owners of the above-mentioned land, buildings and properties, or those whose operation, working and living are adversely affected. (3) Those whose living standards are adversely affected due to land acquisition and house demolition. The affected persons (APs) are defined as: The affected persons refer to those whose living standards are or will be adversely affected by the project implementation; those whose houses, land (including house land, farmland) of their ownership and titles as well as their various types of movable and immovable properties are temporarily or permanently acquired and occupied; those whose operation, profession, working and living conditions are adversely affected. The affected persons may be the individuals or legal persons of the enterprises and institutions. Identification of the affected population shall not be confined to those who conduct business or reside in the affected areas being with or without legal registration and approval. Or, any restriction to compensation for their properties shall be allowed. They are: (1) All affected persons regardless of their legal titles or their presence when their properties are requisitioned. (2) In some special places, people without living permits. Therefore, all these affected persons regardless of their conditions of properties, land and location shall be considered and recorded. As for the acquisition of the land or properties that any individuals or households are related to the utilization or compensation, the compensation and restoration shall be made according to the losses incurred and the impacts on the entitlements and living standards. The identification of affected persons, without considering the legal titles, shall cover those directly related to the negative impacts of the project construction.

v All affected persons by the project shall be compensated so to improve or at least to restore their living standards. Moreover, the losses incurred shall be compensated. Losses of properties shall be compensated at full replacement cost without consideration of depreciation or any other excuses for the reduction or discount of such compensation. All persons affected by the project shall gain the entitlements from the impacts of the project. Moreover, in addition to the compensation for the losses of properties, the affected persons shall be paid subsidies so that they can restore. The affected persons, who do not have properties, entitlements or even the legal permits in operation, land reclamation or construction, shall be treated the same as those affected persons who have the legal properties and entitlements. They shall be entitled to get compensation for their properties and restore their livelihoods. Replacement is defined as the follows: Replacement refers to the activities in making necessary arrangement for the affected people to enable them to restore to the previous productive and living standards and be benefited from the project construction. Mainly including: (1) Remove from the living sites; (2) The APs seek for new employment; (3) Restore or compensate the land, working sites, trees and infrastructure facilities that are affected by the project; (4) Restoration shall be provided to persons whose living standards (living quality) have been adversely affected (such as hazardous gas pollution) caused by land acquisition and house demolition. (5) Restore or compensate for the individuals or public enterprises that are affected by the project; and (6) Restore the culture or the common wealth that have been adversely affected by the project. Restoration is defined as the follows: Restoration refers to rehabilitate the productive capacities of APs with the purpose of reaching or surpassing the previous levels before the project implementation. The objective of this RP is: to provide with a resettlement restoration plan for the affected persons who will be compensated for the losses incurred by the project implementation, so that they can improve or at least restore to the living standards as before the project implementation. In order to achieve this target, this RP has provided with restoration measures that will enable the APs to restore their incomes. Similarly, the affected operational productive resources (stores, enterprises etc.), common wealth, infrastructure facilities and cultural properties etc. shall be also improved and restored to the previous levels before the project implementation.

Contents

EXECUTIVE SUMMARY...... VII

1 INTRODUCTION ...... 10

1.1 Brief introduction to the project...... 10 1.2 Project impacts ...... 10 1.3 Introduction to social economy of the project areas ...... 11 1.3.1 Social economic profile of Nanning city ...... 11 1.3.2 Qingxiu district ...... 12 1.4 Basis for preparation of RP...... 12 1.5 Total project investment and fund sources...... 13 1.6 Mitigation measures ...... 13

2 PROJECT IMPACT ANALYSIS ...... 14

2.1 Acquisition of rural land ...... 14 2.1.1 Analysis of land acquisition impacts ...... 14 2.1.2 Analysis of affected persons ...... 17 2.2 Temporary land occupation ...... 18 2.3 House demolition ...... 18 2.3.1 Demolition of rural houses...... 18 2.3.2 Temporary simple houses ...... 18 2.4 Land attachments...... 19 2.5 Ethnic minorities ...... 19 2.6 Vulnerable groups ...... 19 2.7 Assessment conclusion ...... 19

3 PROFILE OF SOCIAL ECONOMY OF THE PROJECT AREAS ...... 20

3.1 Economic survey results for affected horticulture farms ...... 20 3.2 Results of sampling survey for APs ...... 20 3.2.1 Age structure and education background...... 20 3.2.2 Employment of households ...... 21 3.2.3 House floorage area...... 21 3.2.4 Land resources...... 21 3.2.5 Annual incomes and expenditures of households...... 21

4 LAWS, POLICIES AND COMPENSATION STANDARDS FOR RESETTLEMENT ...... 23

4.1 Policy framework for resettlement...... 23 4.1.1 Laws for resettlement ...... 23 4.1.2 Legal basis for resettlement...... 23 4.1.3 Policy basis ...... 24 4.1.4 Reference...... 24 4.2 Applicable stipulations for resettlement...... 24 4.2.1 Relevant regulations specified in Land Administration Law of the People’s Republic of China

i 24 4.2.2 Regulations specified in Regulations for Implementation of Land Administration Law of the People’s Republic of China ...... 27 4.2.3 Regulations in Provisions of the People’s Republic of China on Tax on Occupation of Cultivated Land ...... 28 4.2.4 Regulations in Guidelines for Strengthening Land Acquisition Compensation and Relocation System issued by Ministry of Land and Resources...... 29 4.2.5 Regulations specified in Methods of Guangxi Zhuang Autonomous Region on Implementation of Land Administration Law of the People’s Republic of China...... 31 4.2.6 Methods of Compensation and Relocation for Acquisition of Collective Land and House Demolition (try-out)...... 34 4.2.7 Regulations specified in Implementation Methods for Management of Urban Building Demolition and Relocation (try-out)...... 38 4.2.8 Policy on Involuntary Resettlement of Asian Development Bank...... 41 4.3 Procedure of Land Acquisition and House demolition...... 41 4.4 Compensation policy and standards for this sub-project ...... 43 4.4.1 Identification of eligibility...... 43 4.4.2 Compensation standards for acquisition of rural collectively-owned land...... 44 4.4.3 Acquisition of state-owned land...... 45 4.4.4 Relevant charges and taxes relating to land acquisition...... 45 4.4.5 Compensation standards for demolition of rural houses ...... 46 4.4.6 Compensation standards for land attachments...... 47 4.4.7 Entitlements Matrix...... 49

5 RESTORATION PLAN AND MEASURES...... 52

5.1 Guideline, objectives and principles for resettlement...... 52 5.1.1 Guideline ...... 52 5.1.2 Resettlement objectives ...... 52 5.1.3 Principle for resettlement ...... 52 5.2 Income restoration plan for affected horticulture farms...... 53 5.2.1 Resettlement plan for Fengling Horticulture Farm...... 53 5.2.2 Resettlement plan for Dongfeng Horticulture Farm...... 55 5.3 Land attachments ...... 56

6 INSTITUTIONAL FRAMEWORK FOR RESETTLEMENT...... 57

6.1 Institutional framework...... 57 6.1.1 Institutional establishment...... 57 6.1.2 Responsibilities of institutional organizations...... 58 6.2 Institutional competence and staffing ...... 59 6.3 Measures for strengthening institutional capacities...... 60

7 BUDGET ...... 62

7.1 Cost estimate ...... 62 7.2 Annual investment plan ...... 67 7.3 Fund management...... 67

7.3.1 Source of Fund ...... 67 7.3.2 Principle for payment of resettlement funds...... 67 7.3.3 Flow direction of resettlement funds...... 68 7.4 Management of resettlement cost...... 68

8 IMPLEMENTATION SCHEDULE FOR RESETTLEMENT ACTIONS ...... 70

8.1 Linking between resettlement and project construction...... 70 8.2 Timetable for milestone activities for implementation of resettlement plan ...... 70 8.2.1 Principle for preparing the timetable for land acquisition, demolition and resettlement. 70 8.2.2 Overall progress plan for land acquisition, demolition and resettlement...... 71

9 PUBLIC PARTICIPATION...... 73

9.1 Public participation during preparation of resettlement plan ...... 73 9.2 Open information of resettlement plan and distribution of information handbook ...... 76 9.3 2. Public participation plan during implementation of resettlement plan...... 77

10 GRIEVANCE ...... 80

10.1 Departments accepting grievance...... 80 10.2 Means of Grievance...... 80

11 MONITORING AND EVALUATION ...... 82

11.1 Internal monitoring and examination...... 82 11.1.1 Implementation Procedures...... 83 11.1.2 Monitoring contents ...... 83 11.1.3 Staffing ...... 83 11.2 External Monitoring ...... 83 11.2.1 Institutions and responsibilities...... 84 11.2.2 Procedures ...... 85 11.2.3 M&E Report Deliverables...... 85

ANNEX I. TERMS OF REFERENCE FOR RESETTLEMENT EXTERNAL MONITORING AND EVALUATION...... 86

1. Target and Tasks ...... 86 2. Institution and Staff...... 86 3. Main Indicators to be Monitored and Evaluated...... 86 4. Monitoring and Evaluation Measures ...... 87

ANNEX II. SKETCH MAP OF LAND ACQUISITION ...... 90

ANNEX III RESETTLEMENT INFORMATION HANDBOOK ...... 91

1 INTRODUCTION ...... 1

1.1 Brief introduction to the project...... 1 1.2 Project impacts ...... 1 1.3 Total project investment and fund sources...... 2 1.4 Mitigation measures ...... Error! Bookmark not defined.

iii 2 LAWS, POLICIES AND COMPENSATION STANDARDS FOR RESETTLEMENT ...... 3

2.1 Policy framework for resettlement...... 3 2.1.1 Laws for resettlement ...... 3 2.1.2 Legal basis for resettlement...... 3 2.1.3 Policy basis ...... 4 2.1.4 Reference...... 4 2.2 Compensation policy and standards for this sub-project ...... 4 2.2.1 Identification of eligibility...... 5 2.2.2 Compensation standards for acquisition of rural collectively-owned land...... 5 2.2.3 Acquisition of state-owned land...... 6 2.2.4 Relevant charges and taxes relating to land acquisition...... 7 2.2.5 Compensation standards for demolition of rural houses ...... 8 2.2.6 Compensation standards for land attachments...... 9

3 INSTITUTIONAL FRAMEWORK FOR RESETTLEMENT ACTIONS ...... 10

3.1 Institutional establishment...... 10 3.2 Responsibilities of institutional organizations ...... 11

4 PROGRESS PLAN FOR RESETTLEMENT ACTIONS ...... 13

4.1 Linking between resettlement and project construction...... 13 4.2 Overall progress plan for land acquisition, demolition and resettlement ...... 13

5 GRIEVANCE ...... 15

5.1 Departments accepting grievance...... 15 5.2 Means of Grievance...... 15

List of Tables

Table 1-1 Summary of Construction Components and Project Impacts of Qingxiushan Sub-project ...... 10 Table 2-1 Summary of Affected Areas of the Project...... 14 Table 2-2 Analysis on Land Acquisition ...... 15 Table 2-3 Analysis on the intensity of impact due to land acquisition...... 17 Table 2-4 Affected Population due to Land Acquisition...... 17 Table 2-6 Summary of Temporary Shelters in the Affected Areas...... 18 Table 2-7 Summary of Land-attached Structures ...... 19 Table 3-1 Basic Social and Economic Situation of Horticulture Farms ...... 20 Table 3-2 Analysis on Incomes and Expenditures of the Survey Samples ...... 22 Table 4-1 Average Regional Land Acquisition Price...... 44 Table 4-2 Summary of Average Per-capita Cultivated Land Coefficient ...... 44 Table 4-3 Compensation Standards for Crops and Land Attachments...... 44 Table 4-4 Summary of Relevant Taxes and Charges Relating to Land Acquisition...... 46 Table 4-5 Compensation Standards for Demolition of Residential Houses Built on Collectively-owned Land (land included)...... 46 Table 4-6 Standards for Replacement Costs for Demolition of Houses Built on Rural Collectively-owned Land (land price excluded)...... 47 Table 4-7 Standards for Subsidies for Demolition of Houses Built on Collectively-owned Land...... 47 Table 4-8 Compensation Standards for Demolition of Temporary Simple Houses ...... 47 Table 4-9 Compensation Standards for Land Attachments ...... 48 Table 4-11 Entitlements Matrix...... 49 Details of proposed resettlement staffing are shown in Table 6-1. The resettlement organization consists of the professional high-quality members who have rich experiences in urban infrastructure management. There are totally 19 full-time personnel, and the total working staff reach 45 persons. Smooth and effective communication channels are available...... 59 Table 6-1 Staffing of Resettlement Organization of the Sub-project...... 60 Table 7-1 Estimate of Resettlement Costs...... 63 Table 7-2 Annual Investment Plan...... 67 Table 8-1 Timetable for Land Acquisition and Demolition...... 72 Table 9-1 Public Opinions and Psychological Survey ...... 75 Table 9-2 Public Participation during Distribution of Resettlement Information Handbook...... 77 Table 9-3 Plan for Public Participation...... 79 Table 11-1 Staffing of Implementing Agency for Monitoring ...... 83

v

List of Diagrams

Diagram 6.1 Institutional Diagram for Project Land Acquisition and Demolition ...... 57 Diagram 7.1 Flow of Resettlement Funds...... 68 Diagram 10.1 Means of Grievance ...... 81

Executive Summary

Qingxiushan Moutain Ecological Protection Sub-project is located in Qingxiu District of Nanning city. The project area covers the administrative zone of Qingxiushan Mountain Scenic Resort, Dongfeng Horticulture Farm and Fengling Horticulture Farm. It contains the components of afforestation, infrastructure construction and supporting facilities. It covers a total area of 19.4km2, where ecological improvement and sewage system will be implemented. Of which, the ecological improvement will be conducted mainly in the administrative zone of Qingxiushan Mountain Scenic Resort with an area of 4.1 km2. The project construction period is 4 years, i.e. 2006-2009. Arrangement of construction progress: 30.0% in 2006; 30.0% in 2007; 20.0% in 2008; 20% in 2009. Qingxiu Mountain Scenic & Tourist Resort Development Co. Ltd is to be the project implementation agency (IA). Resettlement office of Qingsiushan Mountain Tourist Resort Administration Committee will be the responsible institution for the sub-project (Project component) resettlement implementation. Dongfeng Horticulture Farm and Fengling Horticulture Farm will be affected by land acquisition. These two horticulture farms are located in Qingxiu District of Nanning city. Dongfeng Horticulture Farm is a state-owned farm under Nanning Agriculture, Industry and Commerce Group, while Fengling Horticulture Farm is a collectively-owned farm under the administration of Qingxiu Mountain Administration Committee. The project needs to acquire total land of 79.92hm2 ，including 21.92 hm2 of state-owned land of Dongfeng Horticulture Farm (accounting for 27.4%), 58.0 hm2 of collective-owned land of Fengling Horticulture Farm (accounting for 72.6％). According to types of land, dry land is 11.95 hm2（accounting for 15.0％），bamboo grove 1.62 hm2（2.0%），orchards 42.13 hm2（52.7%），forestland 11.04 hm2（13.8 ％）， barren hills suitable for forestation 13.18 hm（2 16.5％）.The affected households amount to 54, covering 174 persons. The demolished rural houses of brick concrete structure will be 600m2 involving three households of 11 persons who are also affected by land acquisition. The demolished temporary shelters will be 1506m2. As a whole, the direct affected population covers 54 households inclusive of 174 persons. In addition, there are totally 3 types of infrastructure facilities and land-attached structures affected by the project construction. In order to avoid or minimize land acquisition impacts, close consultation on project site has been made with local government officials and Horticulture Farm during the Feasibility Study (FS) stage, and the best site is recommended by comparison with alternative sites. The RP is based on the Land Administration Law of PRC (2004) and related matching policies, Decision to Deepen Reform and Strictly Enforce Land Administration by the State Council (Document [2004] No.28), and also related policies of Guangxi Province. Meanwhile, the RP was prepared in compliance with

vii ADB’s Policy on Involuntary Resettlement and relevant social safeguard policies. Based on the above policies and through consultation with local governments and APs, the resettlement principles for the sub-Project are established as follows: (i) Compensation and entitlements provided to APs are at least as adequate as to maintain their “without project” standard of living, with prospect of improvement; (ii) All APs, titled or non-titled, are taken into account for compensation and resettlement assistance; (iii) Land redistribution shall ensure per capita minimum farm-land holding to maintain livelihood standards in post-resettlement period; (iv) Where land acquisition per capita is not sufficient to maintain livelihood, compensation shall be provided for APs in cash or kind for replacement land for other income-generating activities; (v) All APs shall be adequately informed on eligibility for compensation, mode, rates and standards, restoration plans for livelihood and income, project timing, and shall be involved in RP implementation; (vi) No land acquisition shall take place unless replacement land or sufficient compensation for resettlement are given to APs. (vii) The compensation and resettlement operations shall be monitored by the EA and an independent/third party; (viii) Vulnerable groups including floating population should receive special assistance or treatment to ensure their livelihood. The APs listed in the RP shall have the opportunity to benefit from the project; (ix) Resettlement plan should be combined with the overall county/city/district planning; and (x) Resettlement budget should be made fully and thoroughly to cover all aspects. The APs have been informed of the key elements of the RP by various means, such as meetings, interviews, village group discussions, public consultation workshops, and community consultations, during which local representatives have participated in the planning and their concerns have been integrated into the RP. The Chinese version of Resettlement Plan had been sent to related government and related Horticulture Farm in April and May, 2005, and feedback comments from Horticulture Farms have been collected by Qingsiushan Mountain Tourist Resort Administration Committee is to be the project implementation agency (IA). The RP was endorsed by Nanning municipality government on 25 November 2005, Resettlement information Booklets were disseminated to APs on 10 December 2005, and the final RP will be posted on ADB website. The Nanning ADB Resettlement Management Office will be responsible for the supervision of RP implementation, follow-up consultation and grievance redress. The grievance redress procedures have been clearly described in this RP. For permanent land acquisition, the compensation rate is based on the latest policies issued in Nanning municipal; Land compensation must be made for the acquisition of the collectively-owned land. Compensation for land acquisition shall include land compensation, resettlement subsidies as well as compensation for crops and land-attached structures. The individual land unit price shall be defined according to the average regional land price and the average per-capita cultivated land coefficient of the rural collective economic organizations whose land proposed to be requisitioned, i.e. individual land price = average regional land price × the average per-capita cultivated land coefficient .These compensation fees will be paid directly

to affected rural collectives, and will be further distributed to individual Aps on an equal basis after land redistribution. Compensation for standing crops will be paid directly to the owners of the crops. Demolition of the houses built on the collective land shall be resettled in the means of monetary compensation, exchange of property rights or house sites etc. Removal of residential houses shall be compensated with transition subsidies, removal subsidies and time-lost compensation etc. Demolition of temporary simple houses shall be compensated with demolition time-lost subsidies and removal subsidies. The monetary compensation standards for demolition of rural residential houses at replacement cost are 1500yuan/m2. The resettlement and income rehabilitation strategies include land redistribution, cash compensation, skill training for APs, the crops compensation shall be paid to the contractors, while the land acquisition compensation and resettlement subsidies shall be paid to Horticulture Farms for general utilization and distribution. Such funds shall be used as the funds for production expansion of the farm, for which, the purposes shall be decided by the representative’s conference through voting. The generated profits in this connection shall be first used to assist the population directly affected by the project. Land acquisition is planned to commence in June, 2006, and to be completed by end of 2009. The civil works shall not take place before compensations for the APs are fully paid. In order to achieve the successful implementation of RP, besides the internal monitoring, an independent external agent will conduct external monitoring every six months. The cost estimate for land acquisition and resettlement is 99.89 million yuan (2005 current price), including the basic cost covering compensation for permanent land acquisition and temporary land occupation; related taxes and fees; and a contingency of 10% basic costs. The RP budget accounts for 54% of the total sub-project budget.

ix 1 Introduction 1.1 Brief introduction to the project Qingxiushan Mountain Ecological Protection Sub-project aims to safeguard the perpetual stability of Nanning city, realize the sustainable development and high harmony between the urban rapid economic growth and environmental protection, and between natural ecology and human ecology as well. Through re-afforestation, infrastructure construction and the adoption of ecological activities for the improvement of the environmental quality, it will further perfect and upgrade the ecological function as the “green lung of the city” of the mountain. This sub-project contains the components of afforestation, infrastructure construction and supporting facilities. Details are shown in Table 1-1 Table 1-1 Summary of Construction Components and Project Impacts of Qingxiushan Sub-project

Components Contents Project impacts Artificial LA, house demolition 600m² afforestation Afforestation residence & temporary Arboreal mix houses improvement LA & demolition of temporary Seedling base simple houses Without LA & demolition; sewage system temporary cutting of state-owned road. Forest protection Infrastructure without LA & demolition facilities Environmental without LA & demolition monitoring facilities Information without LA & demolition management system road improvement without LA & demolition power supply without LA & demolition Supporting facilities telecommunication without LA & demolition other equipments without LA & demolition Construction plan of the sub-project: Construction period is 4 years, i.e. 2006-2009. Arrangement of construction progress: 30.0% in 2006; 30.0% in 2007; 20.0% in 2008; 20% in 2009. 1.2 Project impacts The project is located in Qingxiu District of Nanning city. The project area covers the administrative zone of Qingxiushan Mountain Scenic Resort, Dongfeng Horticulture Farm and Fengling Horticulture Farm. The project covers a total area of

19.4km2, where ecological improvement and sewage system will be implemented. Of which, the ecological improvement will be conducted mainly in the administrative zone of Qingxiushan Mountain Scenic Resort with an area of 4.1 km2. Land acquisition related with the horticulture farms shall be conducted as a whole better for general management of the project. Thus, the horticulture farms will play a radioactive leading role for the project. Dongfeng Horticulture Farm and Fengling Horticulture Farm will be affected by land acquisition. These two horticulture farms are located in Qingxiu District of Nanning city. Dongfeng Horticulture Farm is a state-owned farm under Nanning Agriculture, Industry and Commerce Group, while Fengling Horticulture Farm is a collectively-owned farm under the administration of Qingxiu Mountain Administration Committee. The project needs to acquire total land of 79.92hm2， including 21.92 hm2 of state-owned land of Dongfeng Horticulture Farm (accounting for 27.4%), 58.0 hm2 of collective-owned land of Fengling Horticulture Farm (accounting for 72.6％). 1.3 Introduction to social economy of the project areas

1.3.1 Social economic profile of Nanning city

According to statistics data of 2004, Nanning has now jurisdiction over seven counties1 respectively of Wuming County, Yongning County, Hengxian County, Binyang County, Shanglin County, Mashan County and Long’an County, five urban districts respectively of Xingning District, Yongxin District, Xincheng District, Chengbei District and Jiangnan District as well as two national-level new and high-tech zone and economic technology development zone. The total area of Nanning city is 22293 km², including urban proper of 1834 km² and built-up area of 124.7km². The total population of Nanning City is 6.4167 million, of which, the population in the city proper is 1.4577 million. Nanning is inhabited by multiple ethnic groups, majority of which are Zhuang people. It is also the only coastal open city featured with southern flavor among the five minority autonomous regions of China. . Nanning is resided by totally 35 ethnic groups, including Zhuang, Miao, Yao, Tong, Mulam, Maonan, etc., among which Zhuang ethnic group accounts for 56.3% of the total population of the whole city. People of all ethnic groups in Nanning live peacefully, enjoying special ethnic folk-customs and colorful ethnic cultures. In 2003, the gross domestic production (GDP) of Nanning was RMB50.253 million, increasing by 10.90%. As for the added value, the primary industry was

1According to the circular of the people’s government of Guangxi Zhuang Autonomous Region issued on February 16 of 2005, Yongning county, Chengbei district, Yongxin district were abolished and substituted by Xixiangtang district, Liangqing district and Yongning district. The administrative coverage of Xingning district and Jiangnan district were expanded, while Xincheng district was renamed as Qingxiu district expanded the administrative coverage. After adjustment, Nanning is divided into 6 urban districts respectively Xingning district, Jiangnan district, Qingxiu district, Xixiangtang district, Yongning district and Liangqing district, as well as 6 counties of Wuming, Hengxian, Binyang, Shanglin, Mashan and Long’an. Because there are not available of statistical data, this RP is still based on the previous administrative division.

11 RMB9.594 billion, increasing by 3.7%; the secondary industry was RMB14.846 billion, increasing by 19.30%; the tertiary industry was RMB25.842 billion, increasing by 9.40%. The financial revenue was RMB 6.106 billion increasing by 16.23%, including local financial revenue of RMB3.624 billion which creased by 18.71%. The investment in fixed assets of the whole society was RMB 19.036 billion, increasing by 21.22%. The total volume of retail sales of the social consumption was RMB 25.498 billion, increasing by 12.33%. The actual foreign investment was USD 147 million, increasing by 11.9%. The total foreign export volume was USD511 million, increasing by 25.52%; The urban average disposable income was RMB9162, increasing by 4.20%. The rural average net income was RMB2231, increasing by 5.35%.

1.3.2 Qingxiu district

Dongfeng Horticulture Farm and Fengling Horticulture Farm affected by land acquisition and demolition by the project are located in Qingxiu District of Nanning city. Qingxiu district (the former Yongxin district) has the total administrative area of 752km2, including 13200ha of forest land. The forest covering rate is 26.3%. According to statistic data in 2004, Qingxiu district administered 3 townships, 1 town, 3 sub-district offices, totally 45 community residents’ committees and 21 villagers’ committees. The population at the year end of 2003 was 290 thousand. In 2003, the GDP of Qingxiu district was RMB1.267 billion. The investment on fixed assets of the whole society was RMB196 million; the total volume of retail sales of the social consumption was RMB20.881 billion; the actual foreign investment was USD4.30 million; gross financial revenue was RMB200 million. The urban average disposable income was RMB8459 and the rural average net income was RMB2662. 1.4 Basis for preparation of RP This RP was compiled on the basis of the multiple investigations on land acquisition and house demolition. The collection of relative data and the solicitation of comments and suggestion of villages, township organizations and the holders of the demolished houses are also used. The basis mainly includes: ¾ Documents relating to the project: Project Proposal for Nanning Qingxiushan Mountain Ecological Protection Sub-Project compiled in April 2004 and Feasibility Study on Nanning Qingxiushan Mountain Ecological Protection Sub-Project compiled in April 2005 by Sichuan Forestry Survey and Design Institute; Feasibility Study Report on Nanning Qingxiushan Mountain Ecological Protection Sub-Project (sewage system) compiled in April 2005 by Guangxi Architectural Comprehensive Design & Research Institute. ¾ Relevant State’s and local laws and regulations on land administration as well as the compensation policies for land acquisition and demolition.

¾ Fact-finding conducted in the affected areas ¾ Sample survey of the affected persons ¾ Consultation with concerned governmental departments, villages’ cadres and APs. ¾ Interviewing with representatives of all affected villages, discussing and formulating the measures and plans relating to their expected compensation and income restoration. 1.5 Total project investment and fund sources The total investment of the project is RMB184.19 million, among which, USD8.13 million shall be from ADB’s loans, and the local counterpart funds of RMB 118.34 million shall be from the financial appropriation from the provincial and municipal governments, special funds from the central government and bank loans. The total cost for land acquisition and resettlement shall be RMB 99.89million, all of them shall be mobilized from domestic bank loans and financial appropriation. 1.6 Mitigation measures As for land acquisition and demolition, the following mitigation measures shall be adopted. (1) To optimize the project design. The acquired land will drop from 190.85hm2 to 79.92hm2 , while the involved horticulture farms will be cut from 4 (including Dongfeng Horticulture Farm, Fengling Horticulture Farm, San’an Horticulture Farm and Qingshan Horticulture Farm) to 2 (i.e. Dongfeng Horticulture Farm and Fengling Horticulture Farm). (2) To strengthen the collection of basic data. On the basis of close analysis on local social economic development currently and in the future, as well as in combination with local actuality, the RP is developed to ensure that the APs would not suffer from losses due to project construction. (3) During construction, it is required to utmost employ local peasant labors to increase their incomes, such as cutting, earth transporting, flower and grass planting etc (4) After completion of the project, local villages shall be encouraged to participate in the tourism development. (5) To reserve land for tertiary industrial development for the local villages. (6) To encourage public participation and accept the monitoring of the public. (7) To strength internal and external monitoring. This is to establish highly effective feedback mechanism and channel to possibly shorten the information processing period, hence to timely solve the problems occurred during the project construction.

13

2 Project impact analysis According to the latest feasibility study report of the project, Dongfeng Horticulture Farm and Fengling Horticulture Farm will be affected by land acquisition and resettlement. Details are shown in Table 2-1. Annex II Project sketch Map of Land Acquisition Table 2-1 Summary of Affected Areas of the Project

Administrative Horticulture impacted contents areas farm Fengling LA, house demolition of 3 households and some Horticulture temporary shelters Qingxiu Farm District Dongfeng Horticulture LA, demolition of some temporary buildings Farm Dongfeng Horticulture Farm and Fengling Horticulture Farm will be affected by land acquisition. The project needs to acquire total land of 79.92hm2.The affected households amount to 54, covering 174 persons. The demolished rural houses of brick concrete structure will be 600m2 involving 3 households of 11 persons who are also affected by land acquisition. The demolished temporary shelters will be 1506m2. As a whole, the direct affected population covers 54 households inclusive of 174 persons. In addition, there are totally 3 types of infrastructure facilities and land-attached structures affected by the project construction. Qingxiushan Moutain Ecological Protection Sub-project area covers the administrative zone of Qingxiushan Mountain Scenic Resort, Dongfeng Horticulture Farm and Fengling Horticulture Farm. Except Dongfeng Horticulture Farm and Fengling Horticulture Farm, administrative zone of Qingxiushan Mountain Scenic Resort belongs to state owned land. By the socio-economic survey, the farmers around the administrative zone of Qingxiushan mountain are not involved in the informal uses of the resources. 2.1 Acquisition of rural land

2.1.1 Analysis of land acquisition impacts

Dongfeng Horticulture Farm and Fengling Horticulture Farm will be affected by project construction. The project needs to acquire total land of 79.92hm2， including 21.92 hm2 of state-owned land of Dongfeng Horticulture Farm (accounting for 27.4%), 58.0 hm2 of collective-owned land of Fengling Horticulture Farm (accounting for 72.6％). In terms of land types, dry land is 11.95 hm2（accounting for 15.0％），bamboo grove 1.62 hm2（2.0%），orchards 42.13 hm2（52.7%），forestland 11.04 hm2（13.8％）， barren hills suitable for forestation 13.18 hm2（16.5％. Details are shown in Table 2-2.

Table 2-2 Analysis on Land Acquisition

Type of land (hm2 ) barren hills Components Farms Items bamboo orchard forest Subtotal Remarks Dry land suitable for grove land land forestation artificial 1.45 1.62 13.68 / / 16.75 Dongfeng afforestation state-owned Horticulture arboreal mix / / / 5.17 / 5.17 farmland Farm improvement Subtotal / / / 5.17 / 21.92 Afforestation artificial / / 28.45 / 13.18 41.63 Fengling afforestation Horticulture arboreal mix / / / 5.87 / 5.87 Farm improvement rural-collective Subtotal / / 28.45 5.87 13.18 47.5 land Fengling infrastructure Horticulture Seedling base 10.5 / / / / 10.5 Farm Total 11.95 1.62 42.13 11.04 13.18 79.92 / Proportion (%) 15.0% 2.0% 52.7% 13.8% 16.5% 100.0% /

15

According to the survey, the acquired land is mostly of hills with lean soil, which is unfavorable for cultivation. Thus, agricultural benefits are comparatively low. Compared with the total area of Dongfeng Horticulture Farm and Fengling Horticulture Farm affected by the project, the intensity of impact due to land acquisition is respectively 73.6% and 19.8%, among which, farmland2 accounts for 50.8% and 9.7% respectively. Details are shown in Table 2-3. Table 2-3 Analysis on the intensity of impact due to land acquisition Horticulture Total land area of acquired land Including: Farmland acquired 2 Farm (hm ) (hm2) proportion (hm2) proportion Dongfeng Horticulture 29.8 21.92 73.6% 15.13 50.8% Farm Fengling Horticulture 293.3 47.5 19.8% 28.45 9.7% Farm

2.1.2 Analysis of affected persons

Investigation shows that there will be 54 households inclusive of 174 persons being affected by the project land acquisition. Among them, there are 18 households inclusive of 46 persons in Dongfeng Horticulture Farm, covering 5.7% of the total farm; 36 households inclusive of 128 persons in Fengling Horticulture Farm, accounting for 8.6% of the total farm. Details are shown in Table 2-4. The comparison shows that the proportion of population affected by land acquisition is by far less than the proportion of area affected by land acquisition. This is because, according to the census, a great quantity of land has been acquired recent years due to the rapid economic development in the outskirt area where the sub-project is located. As for Dongfeng Horticulture Farm that is affected by the project, by now, it has only 29.8hm² of land left, out of which, 13.68hm²has been contracted by 18 households of the farm, averagely about 0.67hm²each household. Other working staffs of the farm have ceased doing agricultural production. As for Fengling Horticulture Farm, the average per household land is about 0.7hm², most of them belong to forest land where planted with fruits and economic forest. Paddy fields and dryland are less. Therefore, even the proportions of land acquisition are high; the proportions of population affected by the land acquisition are by far less. Table 2-4 Affected Population due to Land Acquisition description affected content Degree of Impact Proportion Total nos. of Horticulture farms households APs of Proportion population househol (nos) (nos) households of APs (%) (no.) ds (%) Dongfeng 315 847 18 46 5.7% 5.4% Horticulture Farm Fengling 420 1100 36 128 8.6% 11.6% Horticulture Farm Subtotal 735 1947 54 174 7.3% 8.9%

2 Here farmland include dry land and orchard land.

17 2.2 Temporary land occupation Project construction requires temporary occupation of land for construction materials, construction equipment and temporary shelters etc. According to project design, the project distribution is in form of several sections. After land acquisition and house demolition, more space can be spared within the range of land acquisition by the project. These open spaces shall make way for construction materials, temporary shelters to satisfy the need for field office and stockyard. Therefore, no temporary occupation of cultivated land or house demolition is necessary. Moreover, according to the project design, laying of pipeline for sewage collection shall be constructed along with the road construction in Qingxiushan Mountain Scenic Resort or along the built road. If the pipelines are laid along the built road, project construction must follow the principle of minimizing the impacts in that the pipeline laying shall avoid in the traffic peak hours so to minimize the adverse impacts on urban traffic. Due to the temporary occupation of state-owned land, no land compensation shall be made. After the pipelines have been laid, the construction units shall be responsible for restore the land as per the previous standard and scale, for which, the cost shall be incorporated into the project costs. 2.3 House demolition

2.3.1 Demolition of rural houses

The total area of rural residential houses to be demolished by the project is 600m²brick concrete structure. In this regard, Fengling Horticulture Farm is involved, having 3 households inclusive of 11 people be affected. Details are shown in Table 2-5. Table 2-5 Summary of Demolition of Rural Houses Demolished area (m²) Nos. of Remark Component Horticulture APs (nos) Brick-concrete households s structure Fengling impacted Afforestation 600 3 11 Horticulture Farm by LA

2.3.2 Temporary simple houses

In addition, some land contractors built temporary shelters on the contracted land, where the contractors can keep guard on the fruit trees or pile up the fertilizers as well as raise some poultry (e.g. chickens, ducks, etc.) According to survey, there are totally 1506m2 of such temporary shelters within the affected areas, as shown in Table 2-6. Table 2-6 Summary of Temporary Shelters in the Affected Areas Horticulture temporary shelters （m2） HH

Dongfeng Horticulture Farm 936 18 Fengling Horticulture Farm 570 3 Total 1506 21 2.4 Land attachments There are 3 kinds of affected land-attached structures3, including water tank, septic tank and well, as shown in Table 2-7. Table 2-7 Summary of Land-attached Structures

Fengling Dongfeng Types Unit Horticulture Subtotal Horticulture Farm Farm water container nos 25 2 27 septic tank nos 33 3 36 well nos 5 3 8 2.5 Ethnic minorities The investigation shows that no ethnic minorities are found in the affected areas. 2.6 Vulnerable groups The survey on poverty reasons in the affected areas, plus the needs and classification of vulnerable groups show that this project impacts will not involve the vulnerable groups. In addition, the project itself will not bring any negative impacts on vulnerable groups. On the contrary, the vulnerable groups as well as other APs will benefit from the project in improving their income and livelihoods. 2.7 Assessment conclusion 1. The project implementation needs to acquire some land and demolish some houses, which will surely bring some negative impacts on local residents. 2. It is to minimize the impacts caused by land acquisition and house demolition through effective resettlement measures. After removal, APs and residents in project areas will enjoy better working and living environment. Such shall be achieved through the effective restoration and the implementation of improvement project for “villages within the city” 3. The implementation of this sub-project will bring about remarkable social and environmental benefits as well as some economic benefits. The impacts of land acquisition and house demolition are relatively small, and so the project is feasible.

3 The separate tree is counted because there is mainly forest.

19 3 Profile of social economy of the project areas In order to have further understanding of the social economy and the APs in project areas, Qingxiushan Mountain Administration Committee, following the guidelines of ADB, conducted preliminary survey on social economy in affected areas in April 2005. It thus provides with basic data for project analysis and preparation of this RP. In May 2005, Qingxiu Mountain Administration Committee undertook supplementary investigation on the project impacts. In addition, sample surveys on the social and economic situation of some affected households have been done in the forms of questionnaires, interviewing and visiting, for which, totally 20 households have participated in the sample survey. 3.1 Economic survey results for affected horticulture farms This sub-project will acquire 79.92hm² of land, including 21.92 hm2 state-owned land from Dongfeng Horticulture Farm and 58.0 hm2 collectively-owned land from Fengling Horticulture Farm. The social and economic situations of the affected horticulture farms are shown in Table 3-1.

Table 3-1 Basic Social and Economic Situation of Horticulture Farms

agric Agri. Indu. Gross total ultura Gross Grouss output value average total land house l labors output output for tertiary per-capita Horticulture popul area holds popul (nos) value value indu. income ation (ha.) (nos) ation (RMB1 (RMB1 (RMB10000 (RMB) (nos) 0000) 0000) ) Dongfeng Horticulture 315 847 1904 354 29.8 45 / 450 4380 Farm Fengling Horticulture 420 1100 1077 789 293.3 130 / 258 2786 Farm 3.2 Results of sampling survey for APs This survey covers 20 households inclusive of 76 persons. Among them, 36 are women, accounting for 47.4%.

3.2.1 Age structure and education background

Among the 20 households inclusive of 76 persons under this survey, in terms of age structure, there are 5 persons of 0-6 years old, accounting for 6.8%; 18 persons of 16-60 years old, accounting for 61.1%; 7 persons of over 60 years old, accounting for 8.8%. In terms of education background, there are 8 persons

4 Because Dongfeng Horticulture Farm is owned by the state, whose people farmed on the land are usually defined as employees instead of agricultural population or farmers. These employees enjoy salary and endowment insurance, etc. from the Horticulture Farm.

of illiterates and semi-illiterates, accounting for 10.5%; 9 persons of primary school education, accounting for 11.4%; 33 persons of secondary education, accounting for 43.8%; 20 persons of high school education, accounting for 26.1%; 6 persons of college or above education, accounting for 8.2%.

3.2.2 Employment of households

Among 20 households inclusive of 76 persons, 64 of them are labors, out of which 26 persons are engaged in agricultural labor, accounting for 40.6% of total labors; 21 persons in service area for 32.8%; 11 persons in business for 17.2%; 6 persons in other trades for 9.4%.

3.2.3 House floorage area

Among the 20 households, the average per-capita living area is 36.86m2. Most of the buildings belong to frame structure and brick concrete structure, accounting for 96.8%.

3.2.4 Land resources

The sampling survey shows that the average land per capita is 3.5mu while average paddy field and dry land per capita is only 0.3mu. Most land is of forest hills where crops such lichee, Chinese chestnut, Chinese jujube and longan are grown. The land is mostly of lean soil, which is unfavorable for cultivation. Thus, agricultural benefits are comparatively low.

3.2.5 Annual incomes and expenditures of households

According to sample survey, the incomes per capita of the 20 sampling households is RMB5022.6, among which service income is RMB2325.5, accounting for 46.3%; business income is RMB1290.8 for 25.7%; agricultural income is RMB858.8 for 17.1%; other incomes RMB547.5 for 10.9%. As for expenditure, the average expenditure per capita is RMB3013.8, among which family operational expenses are RMB583.1, accounting for 19.3%; fixed production expenses are RMB501.2 for 16.6%; tax payment is RMB116.9, for 3.9%; withdrawn and retained amount by collective community is RMB289.8 for 9.6%; living consumption is RMB1522.8 for 50.5%. The net incomes per capita of the sampling households is RMB3938.3 Details are shown in Table 3-1 According to the above analysis, most of the population under the survey is engaged in agriculture, but their income structure has greatly changed due to the facts that the project area is located in outskirts of Nanning city. It is very common for outskirt residents to take up one more jobs owing to the economic development in Nanning city. It is shown from income analysis that service industry and business activities have become the main incomes sources for labors. Therefore, agriculture benefits are comparatively lower, rating the third place of incomes. People have got rid of the restriction of agriculture, becoming

21 less dependent on the land. Table 3-2 Analysis on Incomes and Expenditures of the Survey Samples

average per-capita Items proportion (RMB/person) Agriculture 858.9 17.1% Service 2325.5 46.3% average per capita Commercial 1290.8 25.7% income Others 547.5 10.9% Subtotal 5022.6 100.0% family operational expenses 583.1 19.3% fixed production expenses 501.2 16.6% tax payment 116.9 3.9% average per-capita collective withdrawn and expenses 289.8 9.6% retained amount living expenses 1522.8 50.5% Subtotal 3013.8 100.0% per capita net income 3938.3

4 Laws, policies and compensation standards for resettlement The resettlement policies of this project are based on the laws and regulations of the governments of the People’s Republic of China as well as the policy on involuntary resettlement of ADB. 4.1 Policy framework for resettlement In China, the laws and policy for land acquisition and relocation are stipulated in three levels. The first level is the basic law framework stipulated by the State, including the corresponding regulations and implementation guidelines. The second level is the exclusive local laws and regulations set to carry the laws and policies of the State. The third level is the specific regulations and provisions formulated by municipal and county’s governments exclusively for some definite periods or projects.

4.1.1 Laws for resettlement

Land Administration Law of the People’s Republic of China (effected from January 1 of 1999).

4.1.2 Legal basis for resettlement

Regulations for Implementation of Land Administration Law of the People’s Republic of China (effected from January 1 of 1999). Administrative Regulations for Urban Building Demolition and Relocation (effected from Nov. 11, 2001). Methods of Guangxi Zhuang Autonomous Region on Implementation of Land Administration Law of the People’s Republic of China (effected from September 1 of 2001) Provisions of Guangxi Zhuang Autonomous Region on Implementation of Administrative Regulations for Urban Building Demolition and Relocation (Decree No.4 of the People’s Government of Guangxi Zhuang Autonomous Region, 2003). Implementation Methods for Management of Urban Building Demolition and Relocation (try-out), Decree No.17 of the People’s Government of Nanning City, effected from July 1 of 2003. Provisions for Acquisition of Land of Collective Ownership of Nanning City, effected from September 25 of 1996. Provisions for Acquisition of Land of Collective Ownership of Nanning City (Revised), effected from January 1 of 2003. Provisions of the People’s Republic of China on Tax on Occupation of Cultivated Land

23 4.1.3 Policy basis

Methods for Announcement of Land Acquisition approved by the No.9 session of ministerial meeting of the Ministry of Land and Resources on October 18 of 2001 and effected from January 1 of 2002. Decision of the State Council on Deepening Reform and Strengthening Land Administration, Ref. GF[2004]28. Circular of the Ministry of Land and Resources on Management of Land Acquisition Compensation, Ref. GTZF[2004]58. Guidelines for Strengthening Land Acquisition Compensation and Relocation System, Ref.GTZF[2004]238. Management Regulations on Evaluation of House Demolition of Nanning City, August 15 of 2004. Methods of Compensation and Relocation for Acquisition of Collective Land and House Demolition, Ref.NFF[2004]106 Reviews on the Issues of Compensation and Relocation for Acquisition of Collective Land and House Demolition of Nanning City, Ref.NGTZF[2005]1 Circular of the People’s Government of Nanning City on Further Strengthen the Management of House Demolitions in Urban Areas, Ref.NFF[2004]153 Circular on Publishing Market Prices and Corresponding Coefficients of Real Estate of Nanning City, Ref.NJ[2004]30. Reviews on the Issues of House Demolition Compensation and Relocation in Urban Areas of Nanning City, Ref.[2004]32.

4.1.4 Reference

Policy on Involuntary Resettlement of Asian Development Bank 4.2 Applicable stipulations for resettlement

4.2.1 Relevant regulations specified in Land Administration Law of the People’s Republic of China

Article 8 Land in the urban areas shall belong to the ownership of the State. Land in rural areas and outskirts of cities, except for the land owned by the State according to the law, shall be collectively owned by the farmers; homestead, private plots and private hilly land are collectively owned by the farmers. Article 10 Peasants' collectively-owned land that belongs to peasants' collective ownership of a village according to law shall be managed and administered by the village collective economic organization or villagers'

committee; the land that belongs separately to more than two rural collective economic organizations and owned collectively by peasants shall be managed and administered by the respective rural collective economic organizations or villagers' teams; the land that belongs to village(township) peasants' collective ownership shall be managed and administered by the village(township) rural collective economic organization. Article 45 Requisition of the following land shall be subject to approval by the State Council. (I) capital farmland; (II) cultivated land, not included in capital farmland, that exceeds 35 hectares. (III) other land that exceeds 70 hectares.…… Article 47 Land requisitioned shall be compensated for on the basis of its original purpose of use. . Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the acquired land. Compensation for acquisition of cultivated land shall be six to ten times the AAOV of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person of the unit the land of which is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four to six times the AAOV of the acquired cultivated land for three years preceding such acquisition. However, the highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition. The State Council may, in light of the level of social and economic development and under special circumstances, raise the rates of land compensation and resettlement subsidies for requisition of cultivated land.…… Article 48 Once a plan for compensation and resettlement subsidies for requisitioned land is decided on, the local people’s government concerned shall make it known to the general public and solicit comments and suggestions from the collective economic organizations, the land of which is requisitioned, and the peasants. Article 49 The rural collective economic organization, the land of which is requisitioned, shall accept supervision by making known to its known to tis members the income and expenses of the compensation received for land acquisition. The compensation and other charges paid to the unit for its land requisitioned is forbidden to be embezzled or misappropriated.

25 Article 50 Local people’s governments at all levels shall support the rural collective economic organizations, the land of which is requisitioned, and the peasants in their efforts to engage in development or business operation or to start enterprises. Article 54 A construction unit that wishes to use State-owned land shall get it by such means of compensation as assignment. However, land to be used for the following purposes may be allocated with the lawful approval of the people’s government at or above the county level: (I) for State organs or military purposes; (II) for urban infrastructure projects or public welfare undertakings. (III) for major energy, communications, water conservancy and other infrastructure projects supported by the State; (IV) other purposes as provided for by laws or administrative regulations. Article 57 Where land owned by the State or by peasant collectives needs to be used temporarily for construction of projects or geologic prospecting, the matter shall be subject to approval by the land administration department of a people’s government at or above the county level. . The temporary acquisition of land within the municipal planned area should be approved by related municipal planning administration before being submitted for approval. Users of the land should sign a temporary land acquisition contract with related land administration, collectively-owned economic entities in rural areas and village committee based on the property right of the land, and pay the compensation for temporary acquisition of land according to the contract. Users of temporary land acquisition should use the land by the functions agreed in the contract and should not construct permanent structures. Normally temporary land acquisition period is no longer than two years.” Article 62 For villagers, one household shall only have one house site, the area of which may not exceed the limits fixed by provinces, autonomous regions and municipalities directly under the Central Government. Villagers shall build residences inkeeping with the township (town) overall plan for land utilization and shall be encouraged to use their original house sites or idle lots in village as much as possible. Land to be used by villagers to build residences shall be subject to examination and verification by the township (town) people’s government and approved by the county’s people’s government. However, if land for agriculture is to be used for the purpose, the matter shall be subject to examination and approval in accordance with the provisions in Article 44 of this law. Applications for other house sites made by villagers who have sold or leased their houses shall not be approved.

4.2.2 Regulations specified in Regulations for Implementation of Land Administration Law of the People’s Republic of China

Article 25 Upon approval of the scheme for land acquisition, the local people’s governments of city and county level of which land needs to be requisitioned shall organize the implementation of such scheme, and notify to the public of the townships (town) and villages of which the land needs to be requisitioned necessary information such as the organ of approving land acquisition, reference number of the approval, purposes, range and area of land to be requisitioned, compensation standards, resettlement of peasants and the period of claiming land acquisition compensation etc. , The owners and holders of use rights shall, within the specified period in the notification, make necessary registration for land acquisition compensation in the land administrative department designated by the people’s government by presenting the certificates of allocation of landownership and land use right. According to the approved scheme for land acquisition, the competent land administrative department at the city and county level shall, jointly with relevant departments, formulate the plans for land acquisition compensation and resettlement. Such plans shall be made known to the general public of the local townships (town) of which land needs to be requisitioned, so that the comments and suggestions from the collective economic organizations whose land is requisitioned shall be solicited. The schemes for land acquisition and resettlement, after being approved by the people’s governments at city and county level, shall be organized for implementation by the competent land administrative departments of the people’s government of city and county level. Any disputes arising from the compensation rates shall be coordinated by the local people’s governments at or above county level; in case such coordination fails, the disputes shall be adjudicated by the local people’s government that approved the land acquisition. Disputes on land acquisition compensation and resettlement shall not affect the implementation of the schemes for land acquisition. All compensations related to land acquisition shall be fully paid within three months from the date when the scheme for land acquisition compensation and resettlement is approved. Article 26 The land compensation shall be owned by the rural collective economic organizations; while the compensations fro the attached-structures to land and the crops shall be owned by those who have the ownerships of these attached-structures and crops. the compensations for the attached-structures to land and the crops shall be owned by those who have the ownerships of these attached-structures and crops. The resettlement subsidies for land acquisition must be exclusively utilized, no embezzling and misappropriation shall be allowed. If the population needed to

27 be resettled by rural collective economic organization, the resettlement subsidies shall be paid to the rural collective economic organization that shall be responsible for the management and utilization of such subsidies. If the population needed to be resettled by other units, the resettlement subsidies shall be paid to the resettling units. If the population being without the requirement on resettlement, the resettlement subsidies shall be paid to the resettled individuals or as the insurance premium upon the consents of the resettled individuals. The people’s governments at the levels of city, county and township (town) must strengthen the supervision of the utilization of the resettlement subsidies.

4.2.3 Regulations in Provisions of the People’s Republic of China on Tax on Occupation of Cultivated Land

Article 3 Any units and individuals that utilize cultivated land for building construction or engaging in other non-agricultural construction are bound to be the taxpayers for the tax on occupation of cultivated land and pay such taxes according to these regulations. Article 4 The tax amount on occupation of cultivated land shall be calculated based on the actual occupation of cultivated land and paid on one-off basis according to amount to be paid. . Article 5 The tax rates for the tax of occupation of cultivated land are: (I) Assuming county as an individual unit (hereinafter the same), if the average per capita occupation of cultivated land is below one mu (incl. 1mu), the compensation rate shall be RMB2-10/m2. (II) If the average per capita occupation of cultivated land is from 1mu to 2mu (incl. 2mu), the compensation rate shall be RMB1.6-8//m2. (III) If the average per capita occupation of cultivated land is from 2mu to 3mu (incl. 3mu), the compensation rate shall be RMB1.3-6.5/ m2.. (IV) If the average per capita occupation of cultivated land is over 3mu, the compensation rate shall be RMB1-5/ m2. Rural residents who occupy cultivated land for constructing living houses shall enjoy half reduction of the above-mentioned rates. Special economic region, economic and technological development zone, areas of advanced economic development as well as the places of especially less average occupation of cultivated land, the applicable tax amount shall be properly increased but limited to a maximum 50% of increase of the above-stated figures.

4.2.4 Regulations in Guidelines for Strengthening Land Acquisition Compensation and Relocation System issued by Ministry of Land and Resources

Article 1 Regulations on Compensation Standards for Land Acquisition. ….. (II) Identification of the multiples of the uniform annual production value. The identification of the multiples of uniform annual production value for the land acquisition compensation and resettlement subsidies must be based on the principle that the peasants whose land have been requisitioned shall at least maintain their previous living standards but within the allowed contents by the law. If the land acquisition compensation and subsidies that are computed based on the legal uniform annual production value shall fail to enable the peasants whose land is requisitioned to keep at the previous living standard, or fail to pay the social security charges for the peasants who lose their land due to land acquisition, the multiples of compensation shall be properly increased upon approval by the provincial people’s government. If the total sum of land compensation and resettlement subsidies that are calculated as 30 times shall fail to keep the peasants at the previous living standard, such case shall be at unified planning and overall arrangement by the local people’s government, for which, certain amount of the benefits derived from the paid utilization of the state-owned land shall be laid off as the subsidies in this regard. Occupation of capital farmland as approved according to the law, the land acquisition compensation in this connection shall apply the highest compensation standards that are published by the local people’s government. (III) Formulation of the consolidated regional land price for the district where land needs to be requisitioned Wherever applicable, the provincial land administration department shall, jointly with relevant administrative departments, formulate the consolidated regional land prices for different parts of the cities and counties where land needs to be requisitioned. Such prices for land acquisition compensation shall be carried out after being approved and issued by the provincial people’s government. Formulation of the consolidated regional land price shall take into consideration of the factors such as the category of land, production value, location, grades of agricultural land, average per capita cultivated land, relationship of land supply and demand, local economic development level as well as the lowest living standard for urban residents etc.…… Article 2 Stipulations on “the means for resettlement of peasants whose land needs to be requisitioned”. (V) Agricultural production resettlement. Requisition of the peasant’s collective land that is out of the urban planning boundary shall first provide with necessary cultivated land for the peasants, the land of which needs to be requisitioned, to continue their agricultural production through using the rural collective reserved land, the contracted land returned by the tenants voluntarily, circulated contracted land and the additional cultivated land derived from land

29 development etc. (VI) Reemployment resettlement It is required to actively create necessary conditions for the peasants whose land needs to be requisitioned to receive free labor technical training and be arranged corresponding working posts. Under the same conditions, the land-use units shall give priority of employment to the peasants whose land needs to be requisitioned. Requisition of the peasant collective land within the boundary of urban planning shall include those landless peasants due to land acquisition into the urban employment system, for which, the social security system shall be established. (VII) Sharing dividends resettlement As for the project-use land that has long-term stable benefits, if voluntarily agreed by the peasant’s household, the rural collective economic organization whose land needs to be requisitioned may negotiate with the land-use unit to take the land compensation and subsidies as the equity, or take the evaluated use right of the land that is approved as the construction land as the equity participation. The rural collective economic organization and peasant households shall obtain the benefits in the means of preference shares through entering contract. (VIII) Migratory resettlement If the local places are proved to be unable to provide with fundamental productive an living conditions for the landless peasants whose land needs to be requisitioned, under the premises of adequate consultation with the rural collective economic organization and peasant’s households whose land need to be requisitioned, the government may generally organize migratory resettlement. Article 3 Regulations on the working procedures for land acquisition. (IX) Notification of land acquisition Prior to submitting the land acquisition for approval according to the law, the local land administrative department must notify in written the rural collective economic organization and peasant’s household, whose land proposed to be requisitioned, the related information such as the purpose, location, compensation standards and means of resettlement for the land proposed to be requisitioned. After being notified, during land acquisition, the rural collective economic organization and peasant’s households shall not be compensated for any land-attached structures and crops that are planted, grown and built on the land proposed to be requisitioned on rush basis. (X) Identification of the survey results for land acquisition. The local land resources administrative department must undertake investigation of the ownership, land category and area, as well as the ownership, types and quantity of the land-attached structures etc. for the land that is proposed to be requisitioned. The results of survey shall be mutually confirmed by the rural collective economic organization whose land needs to be requisitioned, peasant’s households and the owners of the land-attached structures. (XI) Organize hearing for land acquisition Prior to submitting the land

acquisition for approval according to the law, the local land administrative department must notify the rural collective economic organization and peasant’s household, whose land proposed to be requisitioned, that they have the rights to apply for hearing of the related information such as the purpose, location, compensation standards and means of resettlement for the land proposed to be requisitioned. The interested parties that apply for hearing must follow the stipulated procedures and requirement specified in Regulations of Hearing for Land Resources in organizing the hearing.

4.2.5 Regulations specified in Methods of Guangxi Zhuang Autonomous Region on Implementation of Land Administration Law of the People’s Republic of China

Article 21 According to the master planning for land use, it is to strictly control the total volume of construction land and protect the cultivated land. The priority shall be given to the key projects of the State and the autonomous region, infrastructure project and the projects encouraged by the State’s industrial policy. Article 48 The compensation for the temporary use of agricultural land shall be calculated as per the multiplier of average annual production value for the past three years before the land is temporally used by the years of temporary use. Compensation for the temporary occupation of construction land shall be calculated as per the multiplier of the annual rent of the local similar State-owned land by the years of temporary use. Compensation for the temporary use of the unused land shall be calculated as per 60% of the multiplier of average annual production value of local dry land for the past three years by the years of temporary use. Any damages to the land-attached structures shall be compensated according to the actual conditions. Article 51 After the Land acquisition is approved according to the law, the people’s governments of the city with district establishment and county shall make announcement of land acquisition in the local township (town) and village whose land proposed to be requisitioned within 15 days after receiving the approval document of land acquisition.…… After issuing the announcement of land acquisition, the units whose land proposed to be requisitioned and land contracting individuals are not allowed to plant and grow crops or construct buildings and structures on rush. Article 52 After registration of land acquisition compensation, the land administrative departments of the people’s government of city established with district and county shall, jointly with relevant department, verify the registered issues of land acquisition compensation and draft the scheme for land acquisition compensation and resettlement. The scheme for land acquisition compensation and resettlement shall cover the following contents: (I) Conditions of the land proposed to be requisitioned. (II) Methods of calculation, objects of payment and means of payment of the

31 land compensation charges, resettlement subsidies, compensation charges for crops and land-attached structures. (III) Resettlement plan for peasants whose land proposed to be requisitioned. The competent land administrative department the people's government of city established with district and county shall make the land acquisition compensation and resettlement plans known to the general public of the local townships (town) of which land needs to be requisitioned, so that the comments and suggestions from the land-requisitioned units, land contracting runners and other people shall be solicited. The validity of comments solicitation shall be 20 days. Any disputes arising from the plans of land acquisition and resettlement shall be coordinated by the people’s governments of city established with district and county; in case such coordination fails, the disputes shall be adjudicated by the local people’s government that approved the land acquisition. Any disputes on land acquisition compensation and resettlement shall not affect the implementation of the plan for land acquisition, and the units whose land is requisitioned and land contracting runners shall abide by without obstruction. Article 53 The compensation for land acquisition shall observe the following standards. (I) Compensation for acquisition of capital farmland shall be ten times the AAOV of the acquired land for three years preceding such acquisition for paddy fields, while nine times for dry land. (II) Compensation for the acquisition of the farmland other than capital farmland shall be nine times the AAOV of the acquired land for three years preceding such acquisition for paddy fields, while seven times for dry land. (III) Compensation for acquisition of vegetable land, fish pond and lotus-root pond shall be eight times the AAOV of the acquired land for three years preceding such acquisition. (IV) Compensation for acquisition of protection forest land and special forest land shall be nine times the AAOV of the local dry land for three years preceding such acquisition. (V) Compensation for the acquisition of timbre forest, economic forest and firewood forest shall be, for those with harvest, four to seven times and, for those without harvest, three to four times the AAOV for three years preceding such acquisition. (VI) Compensation for acquisition of plant and flower nurseries shall be three to four times of the AAOV for three years preceding such acquisition. (VII) Compensation for acquisition of in-turn use land and meadow shall be two to three times the AAOV of local dry land for three years preceding such acquisition. (VIII) Compensation for the acquisition of unused land, such as barren hills,

barren land and barren ditch etc., shall be one to two times the AAOV of local dry land for three years preceding such acquisition. The classification of the land types shall be determined after inventory survey of land utilization. Article 54 The resettlement subsidies for land acquisition shall observe the following standards. (I) The total sum of resettlement subsidies for acquisition of cultivated land shall be respectively of: (1) If the average per capita occupation of cultivated land is over 0.06ha., the subsidies shall be five times the AAOV of three years for the acquired land preceding such acquisition. (2) If the average per capita occupation of cultivated land is over 0.05ha. but less than 0.06ha., the subsidies shall be six times the AAOV of three years for the acquired land preceding such acquisition. (3) If the average per capita occupation of cultivated land is over 0.04ha. but less than 0.05ha., the subsidies shall be eight times the AAOV of three years for the acquired land preceding such acquisition. 4. If the average per capita occupation of cultivated land is over 0.03ha. but less than 0.04ha., the subsidies shall be ten times the AAOV of three years for the acquired land preceding such acquisition. 5. If the average per capita occupation of cultivated land is over 0.025ha. but less than 0.03ha., the subsidies shall be twelve times the AAOV of three years for the acquired land preceding such acquisition. 6. If the average per capita occupation of cultivated land is over 0.02ha. but less than 0.025ha., the subsidies shall be fourteen times the AAOV of three years for the acquired land preceding such acquisition. 7. If the average per capita occupation of cultivated land is less than 0.02ha., the subsidies shall be fifteen times the AAOV of three years for the acquired land preceding such acquisition. (II) Resettlement subsidies for acquisition of other types of agricultural land, such as forest land, meadow and aquatic water surface, shall be three to five times the AAOV of three years preceding such acquisition. No resettlement subsidies shall be made for the acquisition of barren hills, barren land, barren shoal and other lands that are without harvest benefits. Article 55 Compensation for crops and land-attached structures on the acquired land shall follow the following stipulations. (I) Compensation for short-term crops shall be made according to the production value of one-round harvest; compensation for the perennial crops shall be reasonably made according to the planting and growing periods.

33 (II) Forest (fruit, bamboo) feasible for transplantation shall be transplanted, for which, labor charges and seedling losses shall be compensated. Those cannot be transplanted shall be compensated. (III) Compensation for houses and other buildings and structures shall be made at full replacement cost of the area of the lost house with no deduction for depreciation or salvageable materials. The actual standards shall be formulated by the people’s governments of counties and the cities established with districts. No compensation will be made for the buildings and structures built on the illegally occupied land, as well as the crops, forest (fruit and bamboo) and the buildings and structures that are planted or constructed on rush after the announcement of land acquisition has been issued. Article 56 As for the legal utilization of the state-owned agricultural, forest, animal husbandry and fishery lands by construction project, the land compensation and resettlement subsidies shall be at 70% of the amount compensated for the acquisition of same-category collectively-owned land; compensation for crops and land-attached structures in this connection shall follow the regulations as designated for acquisition of collectively-owned land. Article 57 The compensation standards for the land acquisition by key infrastructure projects and other key projects, as well as the administrative measures for resettlement land for poverty-stricken hilly areas shall be formulated by the People’s Government of the Autonomous Region.

4.2.6 Methods of Compensation and Relocation for Acquisition of Collective Land and House Demolition (try-out)

Article 2 These Methods are applicable to the compensation and resettlement arising from acquisition of collectively-owned land by the State’s construction within the urban administrative areas or by the rural development. Article 8 The municipal land administrative competent department shall, based on the land use master plan, annual land use plan and the urban construction plan, define the range of land acquisition that shall be submitted to the people’s government for approval. After such, the land administrative competent department shall issue pre-announcement of land acquisition to the rural collective economic organizations whose land needed to be requisitioned. The land acquisition announcement shall cover the texts of location, range, area, time, purpose, compensation standard and means of resettlement etc. for the land needed to be requisitioned. From the date of issuing the pre-announcement of land acquisition, the property right owners and the holders of the use rights shall not be allowed, on the lands needed to be acquired, to change the land-use purposes and the land-attached structures, sell, lease out, mortgage, newly construct or extend houses and other facilities. No planting or growing on rush shall be allowed. The municipal land

administrative competent department shall inform in written the relevant departments such as construction, planning, real estate administration, public security and district government etc. to suspend any formalities in connection with Building Permit, Builder's License, residence immigration and household separation and transfer of house property rights etc. If land acquisition and demolition cannot be performed one year after the issuance of the pre-announcement of land acquisition, the said announcement shall be invalid. Article 9 After issuance of the pre-announcement of land acquisition, the land acquisition and demolition units shall, jointly with the rural collective economic organizations and relevant rights holders, start to investigate the property rights and land categories and make detail records. All relevant rights holders shall confirm the results of the investigation for the current situation of the land needed to be requisitioned. In case relevant rights holders refuse to confirm the investigation results without proper reasons, the land acquisition and demolition units shall take necessary evidence preservation measures. Article 10 After the scheme for land acquisition compensation and resettlement is developed, the land administrative competent department shall inform the rural collective economic organizations and relevant rights holders whose lands needed to be requisitioned that they shall have the rights to apply for hearing of the related information such as the compensation standards and means of resettlement. If the parties concerned apply for hearing, the hearing shall be organized according to the relevant regulations. …… Article 13 Compensation for land acquisition shall include land compensation, resettlement subsidies as well as compensation for crops and land-attached structures. Resettlement subsidies = individual land unit price × land area – land compensation. The individual land unit price shall be defined according to the average regional land price and the average per-capita cultivated land coefficient of the rural collective economic organizations whose land proposed to be requisitioned. The average regional land price refers to the average price of different land categories that are classified according to urban plan, land use master plan as well as the natural, economic and social conditions etc. Compensation for crops and land-attached structures shall be made in real terms. No resettlement subsidies shall be paid for the acquisition of unused land and rural construction land. Article 14 The agricultural population to be resettled must be the on-registered agricultural population of the rural collectively-owned economic entities from the date of issuing the pre-announcement of land acquisition. The

35 requisitioned collective farmland shall be divided by the average per capita farmland of the affected units before land acquisition. The computed result is referred to the resettled population. In case of any decimal fraction, the computation shall be done in round figures. The rural collective economic organizations that had gained the industrial land, subsidies in-kind and subsidies for self-seeking jobs before promulgation of these Methods shall deduct the agricultural population to be resettled according to the corresponding standards as specified in these Methods. The resettled agricultural population may be registered as urban citizens according to relevant regulations. The rural economic organizations shall, if all the cultivated land have been acquired or the average per-capita cultivated land is less than 0.1mu after land acquisition, cancel the village (group) establishment system according to relevant regulations. Article 15 As for the agricultural population required to be resettled, the people’s government shall, in addition to methods for compensation resettlement as stipulated by laws, extend the means of resettlement according to the actualities, such as reserving industrial land, subsidies in kind, self-seeking job subsidies and endowment insurance etc. In this connection, on the basis of urban planning and the land-use master planning, the land acquisition and demolition units shall negotiate with the rural economic organizations, the results of which shall be submitted to the people’s government for approval. (I) Reservation of industrial land. The reservation shall be based on no more than 40m² of average per-capita land as per the on-registered agricultural population of the rural collective economic organization. If the rural collective economic organization is located in the first category or other categories that do not have the availability for land reservation, the means for resettlement mentioned in (II) and (III) below shall be applicable. (II) Subsidies in kind. In the comprehensive commercial and residential building built by the unit, based on 15 m2/person of construction area of commercial building or on 20 m2/person of construction area of residential house, the building shall handed over to the rural collective economic organization of general management. (III) Self-seeking job subsidies. The agricultural population to be resettled shall enter self-seeking job resettlement agreement with the rural collective economic organization. In this case, the land acquisition resettlement subsidies shall be divided by the agricultural population, out of which, the average resettlement subsidies shall be given. In addition, those who entered the said agreement shall be given subsidies for job self-seeking at the rate RMB25000/person. The land acquisition subsidies and self-seeking job subsidies shall be used to pay for the endowment insurance for the displaced people. The resettlement for the dislocated people shall be included into the social

security system, for which, the people’s government shall formulate the regulations. Article 18 Demolition of the legal houses built on the collective land shall be resettled in the means of monetary compensation, exchange of property rights or house sites etc. Those satisfying the conditions for house site resettlement shall be encouraged to adopt the means of monetary compensation or exchange of property rights. Normally monetary compensation or exchange of property rights shall be applicable to the demolished houses that are located within the first and the second categories; or if being approved legally, the rural collective economic organization may build multi-story buildings for resettlement. Those houses in the third category proposed to be demolished shall be resettled through provision of house-site if such would conform to necessary requirement. Article 19 As for the method of monetary compensation, the amount of compensation shall be determined by the land acquisition and demolition unit according to the guideline of monetary compensation as well as the area, status and the story etc. of the houses proposed to be demolished. Article 21 As for exchange of property rights for the houses proposed to be demolished, no price differences shall be counted for the same floorage between the relocating area and the previous demolished area. The extra floorage of relocating area more than the previous demolished area shall be paid according to the cost price of the resettlement houses if within the resettlement standards, while be paid according to the current-year price of local economy rental house if higher than the resettlement standards. If the previous demolished area is more than the relocating area, the compensation shall be made in the means of monetary compensation as specified in Article 19 of these Methods. The additional floorage within 5m² of total relocating area arising from the natural transition of the houses shall be paid as per the cost price of the resettlement houses. Article 23 As for the resettlement to be conducted in the means of providing house sites, the displaced people may apply for house sites to construct new houses in the peasants’ village or residential area that are planned by the township land use plan and township master plan. Resettlement house sites shall be provided by the rural collective economic organization that the displaced people belong to, and the original house sites shall be returned and compensated according to relevant regulations. All demolished houses shall be compensated at full replacement cost. Necessary charges as incurred by obtaining the resettlement land as well as the cost incurred by connecting water, electricity, access road and site leveling shall be paid by the land acquisition unit. Article 24 Demolition of non-residential houses built on collective land shall be compensated in the means of monetary compensation.

37 Demolition of industrial houses in the exchange of industrial land shall be compensated at full replacement cost. Article 26 The land acquisition and demolition unit shall pay to the affected people the removal subsidies according to relevant regulations. Article 27 As for the resettlement in the form of providing house sites for the demolition of residential houses, the land acquisition and demolition unit shall pay removal transition subsidies to and as per affected household for less than one year period. As for the resettlement in the form of monetary compensation, a lump-sum payment of transition subsidies for three months shall be paid. As for the resettlement in form of exchange of property rights, the payment of transition subsidies shall be made until the handing-over of the relocating houses. If the resettlement is provided in the form of built houses, no transition subsidies shall be paid. Article 29 After receiving the notice of removal, the affected people who have removed within the allowable time shall be rewarded by the land acquisition and demolition unit.

4.2.7 Regulations specified in Implementation Methods for Management of Urban Building Demolition and Relocation (try-out)

Article 2 These methods are applicable to the compensation and resettlement arising from the demolition of houses built on state-owned lands that are within the urban planning area of Nanning City. Article 7 The house demolition administrative department must inform the public through multiple means including medias of the range proposed to be demolished according to the annual urban construction plan that has been approved by the government. Article 18 The demolition unit and the affected people shall enter agreement on compensation and resettlement for demolition. As for demolition of rental houses, the demolition unit must enter agreement with the affected people and the tenants on demolition compensation and resettlement. The demolition and resettlement compensation agreement must contain the following: (I) Parties in relation to the demolition; (II) Methods for demolition compensation; (III) Address, structure, area and purpose of the houses proposed to be demolished; (IV) If resettlement in the form of exchange of property rights, location,

structure, area, story, room number, date of delivery and methods of calculation of price difference of the relocating houses shall be identified. (V) Amount of compensation, method and allowable time of payment for demolition; (VI) The allowable time for removal by the affected people or tenants, methods of transition and period of transition; (VII) Contract breaching liabilities; (VIII) Means of settling demolition disputes; and (IX) Other issues as mutually agreed by concerned parties. Article 30 Demolition compensation shall be made in the form of monetary compensation, or in the form of exchange of house property rights. ……. Monetary compensation for demolition shall be encouraged. Article 31 The amount of monetary compensation shall be evaluated according to the real estate evaluating price based on the factors of location, purpose, construction area, status and story etc. of the houses proposed to be demolished. …… Article 33 If the compensation rate of the house proposed to be demolished is lower than the lowest compensation unit price, the demolition unit shall compensate the affected people at the lowest commensuration unit price. Article 34 For the exchange of the property rights during the demolition of houses, the demolition unit and the affected people should, according to the evaluating regulations, calculate the compensation rates for the demolished house and the price of the exchanged house, and settle the price difference caused by exchange of the property rights accordingly. Article 35 For the demolition of the public welfare houses, the demolition unit shall reconstruct the houses according to relevant laws, regulations as well as the urban planning. If confirmed by the planning department the such houses are not required to be reconstructed, the demolition unit shall make monetary compensation. Demolition of the attachments of the non-public welfare houses shall not be compensated in the form of exchange of property rights. In this case, the demolition unit shall make monetary compensation. Article 37 If the property-rights exchanged houses of public ownership under direct management are of excessive areas than the demolished houses, the previous tenants shall pay the rents for the additional area according to the cost rental standards. If the tenants of the public residential houses under direct management are the solitary aged, orphans or disable, the demolition unit shall compensate the affected people in the form of exchange of property rights. In this case, the price

39 difference arising from such exchange shall be reduced or exempted, and the tenants shall enter a new lease agreement with the demolition unit on property-rights exchanged houses. Article 38 In the following cases where that the affected people do not have other places to live due to house demolition, the demolition unit shall provide with resettlement houses for exchange of property rights, exempt the affected people from paying the price differences for the deserved areas and partially reduce or exempt the price differences for the additional compensated area. (I) When the demolition is conducted, the affected people depend on the minimum living standard scheme for urban people paid by the civil administration department; and (II) The affected people are the solitary aged, orphans or disable. Article 41 The demolition unit should pay removing subsidies to the affected people or tenants. If the children of the affected people in primary and secondary schools need to transfer to other schools due to the house demolition, the municipal demolition administrative institution shall issue necessary certificates for such purpose. As such, the education administrative department shall in principle, based on the new addresses after removal caused by demolition, arrange their children to the nearby schools. In this case, the demolition unit shall make necessary payment as required according to relevant regulations to the schools that are bound to accept the children without any objection. Article 42 If the affected people or the house tenants need temporary transition period due to the exchange of property rights, during the transition period, if the affected people arrange residing houses by themselves, the temporary resettlement subsidies shall be paid to the affected people by the demolition unit. If the tenants arrange residing houses by themselves, a total sum of temporary resettlement subsidies for three months shall be paid to the tenants by the demolition unit, while the balanced amount of the temporary transition subsidies shall be paid to the affected people. During the transition period, if the affected people or the tenants use the temporary transition houses provided by the demolition unit, no temporary resettlement subsidies shall be paid. For monetary compensation, the demolition unit shall make a lump-sum payment of temporary resettlement subsidies for three months to the affected people or the tenants. Article 43 If the demolition of office and industrial houses that are under monetary compensation may cause termination of production or business, the demolition unit shall make a lump-sum compensation for 6 months. The compensation for the termination of production or business to the stores, hotels

and other houses shall be at a lump-sum payment of 3 months for such purpose made by the demolition unit. In the case of exchange of property rights, the period for the compensation for termination of production or business to be made by the demolition unit shall be computed based on the transition period as designated in the house demolition compensation resettlement agreement entered by the demolition unit and the affected people.

4.2.8 Policy on Involuntary Resettlement of Asian Development Bank

¾ Avoid or minimize resettlement, wherever feasible; ¾ Where resettlement is unavoidable, multiple feasible schemes and resettlement plan shall be provided to minimize resettlement. ¾ The displaced people shall be compensated and assisted so that they will not have inconvenience in their future economic and social activities due to the project construction. ¾ Resettled people shall be provided with adequate information relating to the resettlement and compensation, for which, mutual discussion shall be required. ¾ Resettled people without formal land title shall be also compensated. Households headed by women and other vulnerable groups, such as indigenous peoples shall be provided with special support to assist them in promoting their social status. ¾ Resettlement plan shall be developed and implemented to the extent possible as a part of the project, and costs as incurred by resettlement and compensation shall be covered by the project costs and benefits of the project construction. ¾ Stakeholders’ participation in the development and implementation of the resettlement plan shall be emphasized. ¾ An effective grievance redress mechanism shall be established. ¾ Resettlement plan and implementing policies shall be fully elicited to the resettled people. 4.3 Procedure of Land Acquisition and House demolition According to the above policies and regulations, Procedure of Land Acquisition and House demolition is summarized. The details are shown in Diagram 4.1.

41 Figure 4-1 Procedures for Land Acquisition and House Demolition

Project Proposal

Investigation/Survey of Inventory Land Acquisition Impacts

Participation and Consultation

Stage 1 RP preparation and Prepare resettlement plan Approval of Land Use by LRB Approvals

Disclosure of Compensation and Resettlement Plans Approval of RP by Government

Approval of RP by ADB

Notification of Removal Cut-off date

Disclosure of Compensation and Resettlement Plans Stage 2 M&E Implementation Detailed Measurement Surveys and Compensation Agreements

Compensation Payments Grievance and

Appeals Mechanism Land Acquisition and house removal

Rehabilitation Measures

Livelihood and income restoration

4.4 Compensation policy and standards for this sub-project In order to practically attend to the works of land acquisition and demolition of Qingxiushan ecological protection sub-project, ensure the smooth progress of the project construction financed by ADB, protect the legal titles and benefits of the affected units and people, this policy is formulated in accordance with relevant laws and regulations, such as Land Administration Law of the People’s Republic of China, Administrative Regulations for Urban Building Demolition and Relocation, Methods of Compensation and Resettlement for Acquisition of Collective Land and House Dismantling (try-out), Ref.NFF[2003]146, Circular on Publishing Market Prices and Corresponding Coefficients of Real Estate of Nanning City, Reviews on the Issues of House Demolition Compensation and Relocation in Urban Areas of Nanning City, Implementation Methods for Management of Urban Building Demolition and Relocation (try-out) etc., as well as Policy on Involuntary Resettlement of Asian Development Bank, plus the actualities of Nanning City and this sub-project itself. The purpose is to ensure that no one will permanently lose his job due to the construction of this sub-project. This policy shall be applicable to any land acquisition and demolition of houses that are built on the state-owned and /or collectively-owned land within the planned range of this sub-project, as well as to the relevant compensation and /or resettlement for the affected units and people.

4.4.1 Identification of eligibility

Affected people, regardless of being removed or not, shall be compensated for the following losses incurred by involuntary loss of land: (1) resettlement or loss of residing houses; (2) loss of properties; and (3) impacts on the income sources and livelihoods. All affected people by land acquisition within the project areas, including holders of the demolished buildings, tenants, enterprises, employees and land users, shall be entitled to be equally compensated and assisted. The demolition agency shall, within three days after obtaining the House Demolition License, issue the announcement of house demolition that contains the necessary texts of the range and allowable time for house demolition. At the same time, the demolition agency shall inform in written the relevant departments to suspend the following formalities relating to such demolition. . (1) Industrial and commercial registration; (2) Transfer, change and mortgage of property rights (except the in-effect verdicts issued by the court or arbitral authority); （3）Approval formalities for new construction, extension or change of the houses or land-attached structures proposed to be demolished.

43 The allowable time for demolition resettlement compensation shall be determined by the government. The affected people will lose their land and houses due to the project construction, and therefore their livelihoods shall be also affected, for such, they shall be compensated and assisted according to the types and quantity of the losses incurred. However, the newly developed land and the newly constructed houses after the deadline shall not be compensated.

4.4.2 Compensation standards for acquisition of rural collectively-owned land

Land compensation must be made for the acquisition of the collectively-owned land. Compensation for land acquisition shall include land compensation, resettlement subsidies as well as compensation for crops and land-attached structures. Resettlement subsidies = individual land unit price × land area – land compensation. The individual land unit price shall be defined according to the average regional land price and the average per-capita cultivated land coefficient of the rural collective economic organizations whose land proposed to be requisitioned, i.e. individual land price = average regional land price × the average per-capita cultivated land coefficient 5 . Details are shown in Table 4-1, Table 4-2, and Table 4-3. Table 4-1 Average Regional Land Acquisition Price

average regional land acquisition price types of land (RMB/mu) Dry land 35000 bamboo grove 20000 orchard land 36000 forest land 20000 barren hills suitable for forestation 20000

Table 4-2 Summary of Average Per-capita Cultivated Land Coefficient

Average per-capita 0.45-0.3 (0.3 Over 0.45 (0.45 excluded) below 0.3 cultivated land (mu) included) modification ratio 1.0 1.2 1.4

Table 4-3 Compensation Standards for Crops and Land Attachments

types of land crops / land attachment (RMB/mu)

5 Cultivated land include paddy field (incl. Field depending on rainfall and irrigated land), dry land and vegetable land. Acquisition of orchard and fish ponds shall be compensated as per the average per-capita cultivated land coefficient. Acquisition of construction use land and unused land shall not apply the modification of the average per-capita cultivated land coefficient; acquisition of agricultural facilities land shall be compensated as per the standards of acquisition of construction use land.

types of land crops / land attachment (RMB/mu) Dry land 1500 bamboo grove 3000 orchard land 4000 forest land 2500 barren hills suitable for forestation /

4.4.3 Acquisition of state-owned land

Occupation of state-owned land by the project shall be compensated in the form of monetary compensation properly. According to Method of Guangxi Zhuang Autonomous Region on Implementation of Land Administration Law of the People’s Republic of China, as for the legal utilization of the state-owned agricultural, forest, animal husbandry and fishery lands by construction project, the land compensation and resettlement subsidies shall be at 70% of the amount compensated for the acquisition of same-category collectively-owned land; compensation for crops and land-attached structures in this connection shall follow the regulations as designated for acquisition of collectively-owned land.

4.4.4 Relevant charges and taxes relating to land acquisition

In addition to the above compensation for land acquisition, other necessary charges must be paid, including land administration fees, farmland occupation tax, development and construction funds for new vegetable plots and fish ponds, farmland reclamation charges, land acquisition service charges and urban construction charges etc. Details are shown in Table 4-5. Land administration fees shall be collected as per Ref.GJFZ[1994]210, Ref.GJFZ[2001]250, Ref.GCYWZ[1999]12 etc., the charge rate shall be 2.8% of the basic land compensation. Farmland occupation tax shall be collected as per Ref. GZF[1987]88 at the standard rate of RMB7/m2. The collection of development and construction funds for new vegetable plots and fish ponds shall be based on Ref. Memo[2003]1 of the Standing Committee of the people’s government of Nanning city at the rate of RMB10000/mu. Farmland reclamation charges shall be computed as per Ref. GJZ[2001]138 at the rate of RMB30/m2 for paddy fields and vegetable land while RMB20/m2 for dry land and orchard land. Urban construction support charges shall be computed as per RMB15000/mu. Land acquisition service charges shall be computed as per RMB2/m2.

45

Table 4-4 Summary of Relevant Taxes and Charges Relating to Land Acquisition

Items Unit Standards Paid to land administration fees Land basic 2.8% Land Bureau compensation (RMB10000) Farmland occupation tax RMB/m2 7 Land Bureau Development & construction funds for RMB10000/mu 1 Land Bureau new vegetable plots and fish ponds Paddy fields & RMB/m2 30 Land Bureau Farmland vegetable land reclamation Dry land & orchard RMB/m2 20 Land Bureau charges land Urban construction support charges RMB10000/mu 1.5 Finance Bureau Land acquisition service charges RMB/m2 2 Land Bureau

4.4.5 Compensation standards for demolition of rural houses

Demolition of the legal houses built on the collective land shall be resettled in the means of monetary compensation, exchange of property rights or house sites etc. Removal of residential houses shall be compensated with transition subsidies, removal subsidies and time-lost compensation etc. Demolition of temporary simple houses shall be compensated with demolition time-lost subsidies and removal subsidies. 1. Monetary compensation standards at replacement cost (land included) The monetary compensation standards for demolition of rural residential houses at replacement cost are shown in Table 4-5. Table 4-5 Compensation Standards for Demolition of Residential Houses Built on Collectively-owned Land (land included)

Structure Compensation standard (RMB/m2) brick and concrete 1550 2. Standards for replacement costs for demolition of houses built on collectively-owned land (compensation standards for reconstruction on house sites) Demolition of the legal houses built on the collective land shall be compensated at full replacement cost plus a plot of free house sites if choosing the form of compensation in providing house site instead of monetary compensation. Land acquisition compensation shall be disposed by the village collective organization in general. Details are shown in Table 4-6.

Table 4-6 Standards for Replacement Costs for Demolition of Houses Built on Rural Collectively-owned Land (land price excluded)

structure of residential house standard (RMB/m2) brick and concrete 450

3. Standards for subsidies for demolition of the houses built on collectively-own land Demolition of houses shall be compensated with transition subsidies, removal subsidies and time-lost compensation etc. Details are shown in Table 4-7.

Table 4-7 Standards for Subsidies for Demolition of Houses Built on Collectively-owned Land

Standard Items Unit Remarks s temporary transition subsidies RMB/month . 450 household removal subsidies (incl. RMB/m2 8 as per house Temporary simple houses) construction area removal time-lost subsidies (incl. RMB/househ 150 Temporary simple houses) old. time reward for advance removal RMB/househ 4000 old Removal charges for telephone, RMB/househ 500 cable TV and broad band etc.; old

4. Compensation standards for demolition of temporary simple houses Table 4-8 Compensation Standards for Demolition of Temporary Simple Houses

Type Standard (RMB/m2) Temporary simple houses 180

4.4.6 Compensation standards for land attachments

Demolition of land attachments shall be compensated in cash at replacement cost. Details are shown in Table 4-9.

47

Table 4-9 Compensation Standards for Land Attachments

Compensation Standards Types Unit (RMB/unit) water container nos 1600 septic tank nos 1500 well nos 1200

4.4.7 Entitlements Matrix

The entitlements matrix is established based on the relevant policies in this chapter. Table 4-11 Entitlements Matrix

Affected type Degree of Impact Affected People Entitlements Compensation standards (1) Land requisitioned shall Individual land unit price = be compensated for on the average regional land price × basis of its original purpose of the average per-capita use. . cultivated land coefficient; (2) Compensation shall Standards for individual land include compensation for acquisition: land, resettlement subsidies Dryland: RMB35000/mu; and attachments and young Bamboo grove: Fengling Horticulture Farm(36 crops on the acquired land. RMB20000/mu households inclusive of 128 The land compensation shall orchard: RMB36000/mu APs) be owned by the rural forest land: RMb20000/mu collective economic barren land for forest: organizations; RMB20000/mu Land LA rural collectively-own land (3) The resettlement subsidies Acquisition of 58hm², incl. 10.5hm² for land acquisition must be rural dryland, 28.45hm²orchard exclusively utilized for the collectively-ow land, 5.87 forest land, 13.18 resettlement of labors, no ned land barren land embezzling and misappropriation shall be allowed. (1) Get crops compensation and labor resettlement subsidies; Young crops compensation: Dryland: RMB1500/mu; (2) Get opportunities for Bamboo grove: compensation in the forms of contractor(36 households industrial land, subsidies in RMB3000/mu inclusive of 128 APs) orchard: RMB4000/mu kind, self-seeking jobs and forest land: RMB2500/mu endowment insurance; and (3) Get RMB25000 subsidies barren land suitable for if in the form of self-seeking forestation: / jobs.

49 Affected type Degree of Impact Affected People Entitlements Compensation standards (1) Land requisitioned shall be compensated for on the basis of its original purpose of use. . land compensation and (2) Compensation shall resettlement subsidies shall be include compensation for at 70% of the amount land, resettlement subsidies compensated for the and attachments and young Dongfeng Horticulture Farm acquisition of same-category crops on the acquired land. collectively-owned land; (18 households inclusive of 46 land compensation shall be compensation for crops and APs) owned by collective land-attached structures in this LA state-owned land organization; connection shall follow the Land ² (3) The resettlement subsidies Acquisition of 21.92hm , incl. Dryland regulations as designated for 1.45hm², orchard 13.68hm², for land acquisition must be acquisition of state-owned ² exclusively utilized for the land forest land 5.17hm , bamboo collectively-owned land. grove 1.62hm². resettlement of labors, no embezzling and misappropriation shall be allowed. (1) Get crops compensation Young crops compensation: and labor resettlement Dryland: RMB1500/mu; subsidies; Bamboo grove: contractor(18 households (2) Get opportunities for RMB3000/mu inclusive of 46 APs) compensation in the forms of orchard: RMB4000/mu industrial land, subsidies in forest land: RMB2500/mu kind, self-seeking jobs and endowment insurance; and Residential house Residential house (1) Optional, including compensation (land price monetary compensation, included): exchange of property rights or Brick concrete structure: 2; Fengling Horticulture Farm reconstruction on house sites; (RMB1550/m Demolition of total demolition 600m²of Affected households(3 (2) Compensation at full Compensation for residential rural residential concrete structure; households inclusive of 11 replacement cost houses at replacement cost houses APs) (3) Temporary transition (land price excluded): subsidies; Brick concrete structure: (4) Residential house removing RMB450/m2; subsidies; Free house sites. (5) Removal time-lost Temporary transition subsidies; subsidies:

Affected type Degree of Impact Affected People Entitlements Compensation standards (6) Removal charges for RMB450/month.household; telephone, cable TV and broad Residential house removing band etc.; subsidies: RMB8/m2 Removing time-lost (7) Reward for advance compensation: removing; RMB150/household.time Removal charges for telephone, cable TV and broad band etc.: RMB500/household; Reward for advance removal: RMB4000/household; Fengling Horticulture Farm Demolition of with 3 households Temporary simple houses ² (1) Monetary resettlement temporary simple house: temporary 1506m of temporary simple Dongfeng Horticulture Farm RMB180/m² simple house (2) removal subsidies structure with 18 household (3) Removal time-lost subsidies;

Compensation at full replacement cost Land Compensated by attachments 3 types of various facilities property holders implementing agency water tank: RMB1600/pcs Septic tank: RMB1500/pcs well: RMB1200/pcs Grievance lodged by any APs unsatisfied with land Relevant institutions shall Grievance related parties, incl. standard acquisition and demolition accept the complains and / and rate of compensation compensation grievance lodged by APs.

51 5 Restoration plan and measures 5.1 Guideline, objectives and principles for resettlement

5.1.1 Guideline

The guideline for resettlement is: On the basis of “the people” as the foremost, and in accordance with the State’s laws, regulations and policies, plus the local regulations and policies, the project will start from high-standard, high starting-point and high requirement to practically undertake the resettlement. The affected people will restore to the normal production and living levels that are no less then those they had before the project construction. Ultimately, it will provide with a harmonious and sustainable production and living environment for the affected people in the project areas.

5.1.2 Resettlement objectives

1. On the basis of “the people” as the foremost, it is to mitigate the adverse impacts on the production and living of the affected people to the possible extent. 2. With the scientific development concept, and through the reasonable resettlement policies and measures, it is not only to compensate the losses incurred to the affected people, but also create favorable development environment and conditions for their future production and living for the purpose of improving their earning and living standards. 3. It is to emphasize the entitlements of the vulnerable groups and women, reasonably take care of their accommodation and daily life, provide with priority access to employment and thus improve their living standards.

5.1.3 Principle for resettlement

In order to improvement of peasants' living standards, the strategy is to adopt multiple channels and layers for resettlement. Based on the relevant laws and regulations of the State and the ADB’s relevant policies and guidelines for involuntary resettlement, the rural resettlement of this sub-project shall follow the following principle. (1) Reasonable compensation. This is to practically carry out the laws, regulations and policies of the State and the local government, scientifically formulate the compensation standards and make reasonable compensation to the people affected by land acquisition and demolition. (2) Coordinating development. The resettlement plan shall be in coordination with the urban planning, social and economic development planning of Nanning city. (3) Public participation. The affected people shall participate in the discussion, hearing, negotiation of the formulation of the resettlement scheme

and compensation standards, so that the legal entitlements of the affected people can be safeguarded to the possible maximum extent. (4) Multiple means of resettlement. Based on the urban development and land utilization, this is to develop more channels for employment through combining with the industrial adjustment. (5) Resettlement in nearby area. Some villagers needed to be relocated shall be settled locally by allowing reconstruction of residential houses in the same village. 5.2 Income restoration plan for affected horticulture farms This sub-project will acquire 79.92hm²of land, including 21.92 hm2 state-owned land from Dongfeng Horticulture Farm and 58.0 hm2 collectively-owned land from Fengling Horticulture Farm. Land acquisition will affect 54 households inclusive of 174 persons. There will be 600m²of brick concrete structure of rural residential houses to be demolished affecting 3 households inclusive of 11 persons6; and also 1506m² of temporary simple houses proposed to be demolished.

5.2.1 Resettlement plan for Fengling Horticulture Farm

(1) Analysis of project impacts Fengling Horticulture Farm is located in Qingxiushan Mountain scenic and tourist resort under the administration of Qingxiu District. At present, the farm has a total 293.3hm² of various types of land, 420 households covering 1100 persons. The sub-project will acquire 58.0hm² of land from the farm, indicating land acquisition impact rate of 19.8%. However, in terms of the affected households and number of APs by land acquisition, land acquisition of this sub-project will affect 36 households inclusive of 128 persons, only accounting for 8.6%. The major reason is that that farm still has a lot of land, being averagely per household 0.7hm², most of them are forest land suitable for growing fruits and economic forest. Paddy fields and dry land are less. Therefore, even the proportions of land acquisition are high, the proportion of population affected by the land acquisition is by far less. In addition, the sub-project will demolish 600m² of rural residential brick-concrete houses, affecting 3 households inclusive of 11 persons, as well as 570m² of temporary simple houses that are usually used to store fertilizers and shelters for guarding the orchards. (2) Restoration measures for production and living After the land is acquired, Fengling Horticulture Farm will get a total land acquisition compensation of RMB39.3901 million, including land acquisition compensation RMB15.7306 million, resettlement subsidies RMB21.4961 million and crops compensation RMB2.1634 million. After discussion, the crops compensation shall be paid to the land contractors, the use of land acquisition and resettlement subsidies shall be decided by the representatives’ conference through

6impacted by land acquisition at the same time.

53 voting. And contractual agreements have been signed with the village committee and APs to confirm APs acceptance of the use of funds and the proposals. Two potential options are i) the land acquisition compensation shall be paid to Fengling Horticulture Farm for general utilization and distribution, and resettlement subsidies shall be paid to he land contractors directly ii) the land acquisition compensation and resettlement subsidies shall be paid to Fengling Horticulture Farm for general utilization and distribution. Such funds shall be used as the funds for production expansion of the farm, for which, the purposes shall be decided by the representatives’ conference through voting. The generated profits in this connection shall be first used to assist the population directly affected by the project. At present, the people’s government of Nanning city has designed the land for the tertiary industrial development. This place is advantageously located 5-6km away from the farm nearby Langdong Passengers Station, totally about 60mu. According to the planning of Fengling Horticulture Farm which discussed by farmers of Fengling Horticulture Farm , at the end of 2006, the land acquisition compensation shall be used to construct a commercial comprehensive building on the reserved land, a building of 21-story high and about 50000m ² construction area . As such, the annual rent income if all leased out shall reach RMB2.5 million. Accordingly, each household will get an estimated total benefit of RMB6000 each year on average after paying necessary taxes and charges and reservation of development funds. The benefits distribution plan will be discussed and decided by farmers. During the 3 years construction, 150 temporary job opportunities can be provided to APs. Operation of the seedling base will have a need for the skills of the farm, which will provide with jobs for about 20 persons to engage in seedling plantation, At the same time, with the land acquisition, the laborers will also got rid of the restriction of agriculture and may engage in other service trade. During the project implementation, the estimated tourist volume will reach 1.3 million person-time each year, which will subsequently stimulate the local trading and economic development and thus create favorable conditions for the non-agricultural production. Further, affected farmers will be further given training on other non-agricultural livelihood development as well as real estate management in anticipation of the boom in tourism industry in the near future. Therefore, after land acquisition and with the development of the horticulture farm, these APs will soon restore their livelihoods. (3) Restoration for demolition of residential houses and temporary simple houses. This sub-project will demolish 600m² of rural brick concrete residential houses, affecting 3 households inclusive of 11 persons. According to the urban planning of Nanning city, Fengling Horticulture Farm shall be improved as per the village level by the end of 2006. At present, a plot of 70mu of house sites including the 3 affected

households has been allocated 100m away from the farm nearby Qingxiu road (opposite Natural Residential Garden),. According to the planning of Fengling Horticulture Farm, this land will be planned and constructed in 2006. Each household will need to invest funds of about RMB200000. Yet, the compensation standard for brick-concrete houses of this sub-project shall be RMb1550/m², and, based on the sample survey, each household will get a compensation amount of RMB230000 if computed as per average area of 150m². Therefore, funds are ensured. As for the compensation for the demolition of temporary simple houses, after discussion, such shall be paid in cash to the property holders at the rate of RMB180/m². No reconstruction shall be involved.

5.2.2 Resettlement plan for Dongfeng Horticulture Farm

(1) Analysis of project impacts Dongfeng Horticulture Farm which belongs to stated owned has been restructured as Dongfeng Industrial Co. Ltd. It is adjacent to Langdong development zone of Nanning City and has become the leading for the development of the tertiary industry that are characterized by the operational pattern where horticulture, real estate management and land cooperative development are focused while supported by other trades. The annual benefits shall reach about RMB7 million, and so agricultural activities have receded from the leading role. At present, the farm has 29.8hm² of various types of land, 315 households inclusive of 847 persons. This project will acquire 21.92hm² of land from the farm, indicating farm land acquisition impact rate of 73.6%. However, in terms of the affected households and number of APs by land acquisition, land acquisition of this sub-project will affect 18 households of the staff of the farm inclusive of 46 persons, indicating only 5.4% of the total Dongfeng Horticulture Farm households. No structures or buildings will be affected. After land acquisition, there will be not any land to re-adjust for distribution. At present, there are only 18 households who contract the land for plantation, for which, the annual average contractual fees is RMB2000/household. Therefore, even though the proportions of land acquisition are high, the proportion of population affected by the land acquisition is by far less. According to the survey, all these affected persons have residential houses in the staff living building of the farm, having 70m²-100m². In addition, due to land acquisition, this sub-project will also demolish 936m² of temporary simple houses that are used to store fertilizer and shelters for guarding the orchards. (2) Restoration measures for production and living After the land is acquired, Dongfeng Horticulture Farm will get a total land acquisition compensation of RMB11.1019 million, including land acquisition compensation RMB4.098 million, resettlement subsidies RMB5.8837 million and crops compensation RMB1.1203 million. After discussion, the crops compensation shall be paid to the land contractors, while the land acquisition compensation and

55 resettlement subsidies shall be paid to Dongfeng Horticulture Farm for general utilization and distribution. Such funds shall be used as the funds for production expansion of the farm, for which, the purposes and benefit distribution options shall be consulted and decided by the workers’ conference through voting. The affected persons are formal workers of the Farm, they cannot suffer from lay-off and their wages is same as before. The generated profits in this connection shall be first used to assist the population directly affected by the project. Since the farm will not have much remaining farm land, there will be not any land re-adjustment. The affected persons will then be covered by the working staff social insurance system of the farm and be paid a subsidy of RMB460/month to all APs. At the same time, with the land acquisition, the laborers will also got rid of the restriction of agriculture and may engage in other service trade. During the project implementation, the estimated tourist volume will reach 1.3 million person-time each year, which will subsequently stimulate the local trading and economic development and thus create favorable conditions for the non-agricultural production. Therefore, the livelihoods of these affected persons will not be impacted seriously and shall be restored quickly. (3) Temporary simple houses Land acquisition of this sub-project will demolish 936m² of temporary simple houses that are used to store fertilizer and shelters for guarding the orchards. Upon discussion, the demolition shall be compensated at replacement cost to the property holders at the rate of RMB180/m². No reconstruction shall be involved. 5.3 Land attachments After land acquisition, the land attachments affected by the sub-project will lose their previous functions. Therefore, upon discussion, the compensation shall be made at replacement cost to the property holders. No reconstruction shall be involved.

6 Institutional framework for resettlement 6.1 Institutional framework

6.1.1 Institutional establishment

In order to ensure the smooth implementation and achieve expected results for the Resettlement Plan, during the project implementation, it is required to establish a vertical institutional organization to plan, coordinate and monitor the resettlement activities. The institutional organizations that are responsible for the land acquisition and demolition resettlement are: (1) Nanning ADB Resettlement Management Office; (2) Qingsiushan Mountain Tourist Resort Administration Committee (3) Resettlement office of Qingsiushan Mountain Tourist Resort Administration Committee; (4) Sichuan Forestry Survey and Design Institute and Guangxi Architectural Comprehensive Design & Research Institute (5) Horticulture farms (6) External monitoring institution.

Nanning ADB Resettlement Management Office

Internal Sichuan Forestry S&D Design Institute /

monitoring Guangxi Archi. Compreh. . D & R Institute

Qingxiushan Administration Committee External monitoring agency

Resettlement Office of Qingxiushan Administration. Committee

Horticulture farms

Diagram 6.1 Institutional Diagram for Project Land Acquisition and Demolition

57 6.1.2 Responsibilities of institutional organizations

¾ Nanning ADB Resettlement Management Office (1) Guide the resettlement according to the ADB’s guidelines for resettlement and report to ADB the resettlement implementation; (2) Examine and approve the resettlement plan and implementation scheme proposed by Qingsiushan Mountain Tourist Resort Administration Committee. (3) Supervise the progress of resettlement implementation and report the situation to ADB. ¾ Qingsiushan Mountain Tourist Resort Administration Committee (1) Entrust design units to define the range impacted by the sub-project. (2) Organize social and economic survey; (3) Formulate the resettlement plan and implementation scheme; (4) Supervise and inspect the implementation of the resettlement plan as well as the payment and utilization of the compensation funds; (5) Coordinate and deal with various problems arising from the resettlement; and (6) Execute the project internal monitoring. (7) Conduct an audit and prepare a Resettlement Completion Report ¾ Resettlement office of Qingsiushan Mountain Tourist Resort Administration Committee (1) Organize the work of land acquisition and resettlement according to the arrangement developed by Qingsiushan Mountain Tourist Resort Administration Committee. (2) Investigate resettlement implementation, listen to the comments from relevant units and individuals, deal with the grievance and take necessary actions; and (3) Make prompt report to Qingsiushan Mountain Tourist Resort Administration Committee the latest situation and problems, as well as make reviews and proposals. (4) Assist internal monitoring. ¾ Sichuan Forestry Survey and Design Institute and Guangxi Architectural Comprehensive Design & Research Institute (1) Optimize design to mitigate the project impacts. (2) Define the range of impacts caused by land acquisition and house demolition.

¾ Resettlement working group of villagers’ committee (1) Participate in the social and economic survey; (2) Organize the public discussion and stress the awareness campaign for land acquisition policies; (3) Select the resettlement location and arrange house sites for affected people; (4) Be responsible for land adjustment and distribution, organize the resettlement activities such as production development and training etc.; (5) Report to the higher authorities the comments and proposals of the affected people; (6) Report the progress of resettlement; and (7) Provide with necessary assistance to the vulnerable households and those family members. ¾ External monitoring institution The external monitoring institution shall be responsible for the monitoring of resettlement, listen to the comments of the affected units and individual, report and propose to the project management office and the implementing agency, including: (1) Investigate the existing social and economic conditions of the planned area; and prepare a baseline survey for submission to ADB. (2) Estimate the detail impacts of the project and the situation of restoration of production and living; (3) Analyze the collected data; (4) Monitor the whole process of the implementation of the resettlement plan and report to the project office and implementing agency the progress of resettlement plan. The agency shall be responsible for making detail illustration in the external monitoring and evaluation report, and submitting 6-monthly reports to ADB; and (5) Conduct annual evaluation of resettlement at least two times and submit to ADB. 6.2 Institutional competence and staffing Details of proposed resettlement staffing are shown in Table 6-1. The resettlement organization consists of the professional high-quality members who have rich experiences in urban infrastructure management. There are totally 19 full-time personnel, and the total working staff is 45 persons. Smooth and effective communication channels are available.

59 Table 6-1 Staffing of Resettlement Organization of the Sub-project

Full-time Total staff at Resettlement organizations personnel peak Staff structure (person) (person) Nanning ADB Resettlement public servant (university 2 8 Management Office education) Qingxiushan Mountain Tourist public servant (university Resort Administration 2 6 education) Committee Resettlement office of Qingxiushan Mountain Tourist public servant, engineers 3 7 Resort Administration (university education) Committee Sichuan Forestry Survey and Design Institute and Guangxi 4 8 engineers (university education) Architectural Comprehensive Design & Research Institute village cadre and representative of Horticulture farm 5 10 APs External monitoring agency 3 6 resettlement experts. Total 19 45

6.3 Measures for strengthening institutional capacities In order to ensure the smooth implementation of the resettlement, it is necessary to strengthen the capacity building for the concerned institutions. Therefore, the following measures shall be taken: (1) Ensure funds and equipment, being equipped with telephones, facsimile and computer etc. ; (2) Establish the management information system for land acquisition and demolition. Collect resettlement information shall be processed by computers and thus ensure the effective information exchange. (3) Organize training and research activities for the personnel of these institutions; (4) The vertically-established institutions will set up a reporting mechanism on monthly basis; (5) The horizontally-established institutions will hold a coordinating meeting on seasonal basis to enhance the information exchange; (6) The questions proposed by the affected people shall be reported to the higher levels vertically one after another; (7) The problems arising during the construction process shall be reported by the site engineers directly to the immediate leading organization or, if

necessary, directly report to the higher authorities; (8) Strict regulations must be formulated to prevent the relevant personnel from shifting off responsibilities or delaying implementation progress, and if any accidents occur, the responsible persons shall be seriously punished.

61 7 Budget 7.1 Cost estimate The total costs for land acquisition and demolition of this sub-project shall be RMB99.89million, of which, RMB50.49 million for land acquisition (RMB39.39 million for Fengling Horticulture Farm; RMB11.10 million for Dongfeng Horticulture Farm), accounting for 50.5%; house demolition compensation RMB1.25 million, accounting for 1.2%; land attachments compensation RMB0.11 million, accounting for 0.2%; various taxes and charges RMB48.0465 million, accounting for 48.1%. The estimated costs for resettlement are shown in Table 7-1.

Table 7-1 Estimate of Resettlement Costs

Compensation Fengling Horticulture Farm Dongfeng Horticulture Farm Total Items Unit standards cost cost cost Qty. Qty. (RMB/unit) (RMB10000) (RMB10000) (RMB10000) 1. Land acquisition7 hm2 - - 3939.01 - 1110.19 5049.20 1.1 Rural collectively-owned hm2 - 58.00 3939.01 - - 3939.01 land Dry land hm2 757500 10.50 795.38 - - 795.38 Land Compensation hm2 198450 10.50 208.37 - - 208.37 Resettlement Subsidy hm2 536550 10.50 563.38 - - 563.38 crop compensation hm2 22500 10.50 23.63 - - 23.63 Orchard land hm2 816000 28.45 2321.52 - - 2321.52 Land Compensation hm2 198450 28.45 564.59 - - 564.59

Resettlement Subsidy hm2 557550 28.45 1586.23 - - 1586.23

crop compensation hm2 60000 28.45 170.70 - - 170.70 Forest land hm2 457500 5.87 268.55 - - 268.55 Land Compensation hm2 420000 5.87 246.54 - - 246.54 Resettlement Subsidy hm2 0 5.87 0.00 - - 0.00 crop compensation hm2 37500 5.87 22.01 - - 22.01 Barren hills suitable for hm2 420000 13.18 553.56 - - 553.56 forestation

Land Compensation hm2 420000 13.18 553.56 - - 553.56

Resettlement Subsidy hm2 0 13.18 0.00 - - 0.00 crop compensation hm2 0 13.18 0.00 - - 0.00 1.2 state-owned land hm2 - - - 21.92 1110.19 1110.19

7 This budget adopts 1.4 average per-capita cultivated land coefficient, which shall be adjusted according to the actual conditions during project implementation. 63 Compensation Fengling Horticulture Farm Dongfeng Horticulture Farm Total Items Unit standards cost cost cost Qty. Qty. (RMB/unit) (RMB10000) (RMB10000) (RMB10000) Dry land hm2 537000 - - 1.45 77.87 77.87 Land Compensation hm2 138915 - - 1.45 20.14 20.14 Resettlement Subsidy hm2 375585 - - 1.45 54.46 54.46 crop compensation hm2 22500 - - 1.45 3.26 3.26 Bamboo grove hm2 339000 - - 1.62 54.92 54.92 Land Compensation hm2 294000 - - 1.62 47.63 47.63 Resettlement Subsidy hm2 0 - - 1.62 0.00 0.00 Crop compensation hm2 45000 - - 1.62 7.29 7.29 Orchard land hm2 589200 - - 13.68 806.03 806.03 Land Compensation hm2 138915 - - 13.68 190.04 190.04 Resettlement Subsidy hm2 390285 - - 13.68 533.91 533.91 crop compensation hm2 60000 - - 13.68 82.08 82.08 Forest land hm2 331500 - - 5.17 171.39 171.39 Land Compensation hm2 294000 - - 5.17 152.00 152.00 Resettlement Subsidy hm2 0 - - 5.17 0.00 0.00 Crop compensation hm2 37500 - - 5.17 19.39 19.39 2. Demolition of rural houses - - - 106.45 - 18.14 124.58 2.1 Residential house - - 600 93.00 - - 93.00 Brick-concrete structure m² 1550 600 93.00 - - 93.00 2.2 Temporary simple houses m² 180 570 10.26 936 16.85 27.11 2.3 Other compensation - - - 3.19 - 1.29 4.47 Temporary transition hosehould 2700 3 0.81 - 0.00 0.81 subsidies8

Compensation Fengling Horticulture Farm Dongfeng Horticulture Farm Total Items Unit standards cost cost cost Qty. Qty. (RMB/unit) (RMB10000) (RMB10000) (RMB10000) House removal subsidies (incl. Temporary simple m2 8 1170 0.94 936 0.75 1.68 house) Removal time-lost subsidies9 (incl. hosehould 300 3 0.09 18 0.54 0.63 Temporary simple houses) Reward for advance hosehould 4000 3 1.20 - 0.00 1.20 removal Removal charges for telephone, cable TV and hosehould 500 3 0.15 - 0.00 0.15 broad band etc.; 3. Land attachments - - - 1.13 - 9.55 10.68 Water container nos 1600 2 0.32 25 4.00 4.32 Septic tank nos 1500 3 0.45 33 4.95 5.40 well nos 1200 3 0.36 5 0.60 0.96 Total of 1-3 - - - 4046.58 - 1137.88 5184.46 4. Prospecting & design RMB10000 2% 4046.58 80.93 1137.88 22.76 103.69 charges 5. External monitoring & RMB10000 2% 4046.58 80.93 1137.88 22.76 103.69 evaluation 6. Internal monitoring & RMB10000 2% 4046.58 80.93 1137.88 22.76 103.69 evaluation 7. Administrative charges RMB10000 5% 4046.58 202.33 1137.88 56.89 259.22 8.Training RMB10000 3% 4046.58 121.40 1137.88 34.14 155.53

9 as per 2 times of removal 65 Compensation Fengling Horticulture Farm Dongfeng Horticulture Farm Total Items Unit standards cost cost cost Qty. Qty. (RMB/unit) (RMB10000) (RMB10000) (RMB10000) 9. Contingency RMB10000 10% 4046.58 404.66 1137.88 113.79 518.45 10. LA taxes RMB10000 - - 2583.53 - 976.86 3560.39 land administration fees RMB10000 2.8% 3939.01 110.29 1110.19 31.09 141.38 Farmland occupation tax hm2 70035 38.95 272.79 15.13 105.96 378.75 Farmland reclamation hm2 200100 38.95 779.39 15.13 302.75 1082.14 charges Urban construction hm2 225000 58.00 1305.00 21.92 493.20 1798.20 support charges Land acquisition service hm2 20010 58.00 116.06 21.92 43.86 159.92 charges Sub-total of 4-10 - - - 3554.71 - 1249.95 4804.66 Total - - - 7601.29 - 2387.83 9989.12

7.2 Annual investment plan The annual investment plan shall be developed according to the progress of project land acquisition and resettlement. The annual investment plan for this sub-project is shown in Table 7.2. Table 7-2 Annual Investment Plan

Year 2006 2007 2008 Total Investment (RMB10000) 4994.56 3496.19 1498.37 9989.12 proportion 50.00% 35.00% 15.00% 100.0% 7.3 Fund management.

7.3.1 Source of Fund

According to the progress of the project, the funds for resettlement shall be from domestic bank loans and financial appropriation.

7.3.2 Principle for payment of resettlement funds.

(1) All costs relating to land acquisition and demolition shall be included into the total budget of the project. The land acquisition compensation and other relevant charges shall be paid by the project management office to the relevant units and individuals through the resettlement office. (2) The land acquisition compensation shall be paid to the farms via banks through the project resettlement office. In principle, these administrative villages shall utilize such compensation in restoring production for the affected areas or the villagers’ groups that accept the affected people. (3) The house demolition resettlement compensation shall be paid by the resettlement office to the affected people starting from the house construction, i.e. the house demolition compensation shall be paid to the affected people in several stages. The final payment shall be made just before the house construction is completed. (4) Land acquisition compensation shall be paid one month before the land acquisition is begun. (5) In order for smooth implementation of the land acquisition and resettlement, the project office shall establish graded financial and supervising institutions so to ensure the prompt appropriation of all funds. (6) The budget is an estimate of resettlement cost. The project office will guarantee payment for any increased due to physical change in project scope, actual impacts based on DMS, revision in compensation and price inflation. The budget already has some provision for physical and price contingencies and then will be utilized on revised as required.

67 7.3.3 Flow direction of resettlement funds.

The demolition unit and the affected people shall, within the allowable time announced by the land acquisition and demolition office, enter compensation resettlement agreement according to relevant laws and regulations that are applicable to land acquisition. For monetary resettlement, the agreement shall record the amount of compensation, method of payment, time of payment, time of removal, responsibilities for breaching agreement as well as other terms and conditions entered by the concerned parties. As such, the resettlement funds shall be paid to the affected people according to relevant policies. The basic funds flow is shown in Diagram 7.1.

Domestic loans Financial allocation

Nanning ADB Resettlement Management Office

Qingxiushan Administration Committee

Resettlement Office of Qingxiushan Ad. Committee

Households Displaced People Farms

Diagram 7.1 Flow of Resettlement Funds

7.4 Management of resettlement cost ¾ The basic resettlement costs shall be under budgetary management in the exclusive account for special utilization. ¾ The expenditures for the basic resettlement cost shall follow the relevant laws and regulations of the State applicable to land acquisition and demolition, including the policies as specified in Resettlement Plan. No less payment and compensation standards that are inconsistent with the Resettlement Plan shall be allowed. ¾ As for the basic resettlement funds and relevant charges, the

preparation section, land acquisition section and demolition section shall prepare the funds utilization plans, and then the fund management section shall develop the overall funds utilization plan. ¾ When the payment is to be made, the land acquisition and demolition department shall be responsible for verification of the scope, area and price of the acquired land and demolition, while the accounting personnel of the funds management section shall be responsible for checking, verifying and preparing statement. ¾ Land compensation (including resettlement subsidies, crops and fish compensation, and turn-in charges) as well as house transaction taxes and charges shall be verified by land acquisition section. House demolition compensation, land-attachment compensation, removal compensation as well as the losses incurred to business operators, enterprises and institutional units shall be verified by demolition section, rechecked by accounting personnel. The payment shall be made by the project office to the affected people whose lands and houses are acquired or demolished through entrusted banks. ¾ Demolition clear-up charges and real estate evaluation charges shall be verified by demolition section and rechecked by the accounting personnel before making progress interim payment. ¾ The commission charges paid to the demolition agencies shall be concluded according to the terms and conditions of the agreement entered between the project office and these agencies.

69 8 Implementation Schedule for resettlement actions 8.1 Linking between resettlement and project construction

Based on the project construction progress, the project shall be completed in four periods from 2006 to 2009. The plan for land acquisition, demolition and resettlement shall be in consistence with the construction of every components of the sub-project, which shall start from 2006 and end in 2009. The principles for progress arrangement are: ¾ Land acquisition must be completed at least one month prior to the land use by the project. The starting time for land acquisition shall be determined according to the actual work of land acquisition, house demolition and resettlement; if not completed , civil works will be postponed ¾ The project construction shall leave adequate time for land acquisition, house demolition and resettlement. 8.2 Timetable for milestone activities for implementation of resettlement plan

8.2.1 Principle for preparing the timetable for land acquisition, demolition and resettlement.

The overall progress plan for land acquisition, demolition and resettlement shall be developed based on the progress of preparation and implementation of land acquisition, demolition and resettlement. Formulation of the schedule for land acquisition, demolition and resettlement shall observe the following principle: ¾ The range of land acquisition shall be finalized according to all engineering design drawings and should be completed before the land measurement. ¾ The measurement and computation of the land and houses proposed to be acquired or demolished shall be, according to the project alignment for land acquisition, undertaken jointly by the resettlement section and the property holders prior to the signing the resettlement agreement. ¾ The project resettlement section shall organize the mobilization meeting for land acquisition and demolition participated by the affected people and the affected units. Such meeting shall notice to the public the relevant policies and resettlement methods relating to land acquisition, house demolition and compensation resettlement. The meeting shall be held before signing the compensation resettlement agreement, after which, the announcement of land acquisition and demolition shall be formally issued. ¾ Signing compensation resettlement agreement between the demolition unit and affected people shall be conducted after the measurement computation and issuance of the land acquisition and demolition announcement. ¾ To ensure RP implementation is integral to the project and civil wroks schedule, and the implementation schedule should be in accordance with PRC law, for example, preparation of land acquisition and development

plan, disbursement of compensation to all affected persons within 3 months of approval. ¾ The affected people shall be paid transition subsidies during the transition period before the removal. ¾ Resettlement of enterprises shall take prior consideration of arranging resettlement land so that the business cessation losses may be minimized. If cessation is required for transition, the cessation loss subsidies shall be paid before the removal. ¾ New basic facilities shall be built before the old ones are demolished. ¾ Conclusion and payment of compensation shall be conducted after signing agreement but before removal. ¾ Resettlement shall be practically conducted to the satisfaction of the affected people. ¾ Detailed Rehabilitation measures should be made before land acquisition and house demolition and be completed within 12 months of relocation ¾ If needed, various skill training will be provided to the APs by local labor department and IAs. ¾ In order to ensure a smooth implementation of RP and achieve the RP objectives, regular monitoring and evaluation including internal monitoring and independent external monitoring will be carried out during resettlement implementation

8.2.2 Overall progress plan for land acquisition, demolition and resettlement

The overall progress plan for land acquisition, demolition and resettlement shall be developed based on the progress of preparation and implementation of land acquisition, demolition and resettlement. However, this schedule shall be adjusted accordingly if the overall progress deviates. Details are shown in Table 8-1.

71

Table 8-1 Timetable for Land Acquisition and Demolition

Note : In order to minimize the impacts of land acquisition on the local farmers, during the construction period, the land acquisition will be arranged in different phases according to the actual requirement of the project construction. As such, the agreement signing and payment shall be also implemented according to the relevant laws, regulations and the principles of this RP. Detail schedule shall be addressed in the updated RP after detailed design.

9 Public participation In accordance with the laws, regulations and policies respectively of the state, Guangxi Zhuang Autonomous Region and Nanning city, in order to safeguard the legal entitlements of the affected units and affected persons and minimize any complaints and disputes, it is required to further develop the relevant policies and implementation provisions for resettlement according to the features of the sub-project, prepare the resettlement plan and practically attend to the implementation, thus to achieve the target of resettlement. In this sub-project, public participation, discussion and extensive soliciting of the APs opinions are greatly stressed during the process of formulation of resettlement policies, preparation of plan and implementation etc. 9.1 Public participation during preparation of resettlement plan During the feasibility study, the project management office has solicited the proposals and comments on resettlement from relevant government departments (such as land administration bureau, land acquisition and demolition office), masses groups and the displaced people of the project area. On March 31, organized by Qingsiushan Mountain Tourist Resort Administration Committee, a discussion meeting was held with the participants of cadres and representatives of APs from the horticulture farms, where the opinions and comments of the participants were solicited. On April 1 – 4 of 2005, the project management office entrusted Guangxi Academy of Social Sciences to start the social survey by selecting 210 households as samples at random with the purpose to understand the willingness of displacement and the APs attitudes towards to the project construction, thus laid good foundation for the preparation of this resettlement plan. In May of 2005, at the same time of conducting sample survey of the household economic situation of the households under direct impacts of the project, Qingsiushan Mountain Tourist Resort Administration Committee undertook investigation of public opinions and physiological survey. Among the 20 households under survey, 54.5% households knew about this sub-project, while 45.5% knew little about or had no idea about this sub-project; 81.8% households were in favor of the project construction, 6.1% expressed objection while the rest didn’t care; 90.9% acknowledged this sub-project would be good to the state, 66.7% to the collective and 75.8% to individuals; 57.6% held the views that environmental pollution would cause economic losses, 72.7% that it would affect the living quality, 45.5% that it would affect the investment environment and 42.4% that it would affect the urban image. All the interviewees agreed that inferior environment would have negative impacts of living, and 18.2% held the views that such would not bring about serious impacts to the daily life and work, while 81.8% that such would cause serious adverse effects. 60.6% of the interviewees regarded that this sub-project will improve their living environment, 51.5% that such would improve the working environment, 33.3% that such would add to the employment opportunities and

73 57.6% that such would be good to the health. 93.9% interviewees expressed they knew or knew something about the policies for land acquisition, demolition and resettlement, and 93.9% knew the entitlements to lodge grievance when their legal rights are infringed upon during the process of land acquisition and demolition. Details are shown in Table 9-1.

Table 9-1 Public Opinions and Psychological Survey Results No. Question Answers (1) (2) (3) (4) (5) Do you know about this 1 (1) yes; (2) not clearly; (3) no 54.5% 42.5% 3.0% project? Are you in favor of this 2 (1) yes; (2) no; (3) don’t care 81.8% 6.1% 12.1% sub-project to be constructed? Whom do you think this State (1) yes; (2) no 90.9% 3 sub-project would be beneficial Collective (1) yes; (2) no 66.7% to? (multiple options) individuals (1) yes; (2) no 75.8% (1) economic losses; What do you know about the (2) impacts on living quality; 4 consequences brought by 57.6% 72.7% 45.5% 42.4% (3) impacts on investment environment; environmental pollution? (4) impacts on the urban image. (1) no; How much do you think the (2) not seriously 5 inferior environment would 0% 18.2% 48.5% 33.3% (3) seriously; affect you life and work? (4) very seriously. (1) improve living environment; What benefits would the (2) improve working environment; 6 60.6% 51.5% 33.3% 57.6% sub-project bring to you? (iv) increase of job opportunities (4) be good to health. (1) no negative impacts; (2) construction impacts traffic; What negative impacts would 7 (3) house demolition may cause economic losses; 48.5% 27.3% 27.3% 27.3% 6.1% this sub-project bring to you? (4) land acquisition may reduce the income; (5) others. Do you know about (1) yes; 8 resettlement policies for land (2) somewhat; 51.5% 42.4% 6.1% acquisition and demolition? (3) no Do you know grievance if your legal rights are infringed by (1) yes; 9 93.9% 6.1% others during land acquisition (2) no and demolotion?

75 On May 12 of 2005, organized by the project management office, a consultation meeting for resettlement policies was held in Nanning Financial Bureau with participants from Nanning Land Administration Department, Nanning Land Acquisition and Demolition Office, Nanning Poverty-reduction Office, Nanning Civil Affairs Bureau etc., where the resettlement policies and supporting policies for vulnerable groups were fully discussed. On May 13 – 23 of 2005, the project management office and Qingsiushan Mountain Tourist Resort Administration Committee organized the investigation of the house conditions within the project area and social economic survey. In this survey, relevant representatives had participated in the activities and proposed their reviews on the resettlement plan, compensation and resettlement, to which, this resettlement plan has given full consideration. 9.2 Open information of resettlement plan and distribution of information handbook Before the implementation, the project management office will also adopt the following procedures and means to encourage the public participation and discussion. (1) Hold discussion meetings. Six months before the land is used, IA will organize discussion meetings with participants of rural residents, village cadres and women representatives etc., where to introduce necessary information and solicit their comments and suggestions. (2) Hold mass conference. Three months before the land is used, especially before the implementation of this resettlement plan, it is to illustrate the relevant policies, regulations, compensation standards and resettlement schemes etc. so that the APs may have better understanding and make earlier arrangement. (3) Publicize the resettlement policies through the media such as TV and local newspaper. (5) Issue land acquisition announcement. The announcement shall contain brief introduction of the project, land use range, resettlement policies (incl. Compensation standards), resettlement responsible institutions; house demolition timetable, entitlement and obligation of APs, complaints and grievance, monitoring and evaluation etc. (5) Cadres of farms and representatives of APs participate in the land acquisition and resettlement. During the implementation, the cadres of farms and representatives of APs, jointly with the staff from Nanning project management office and the Administration Committee of Qingsiushan Mountain Tourist Resort, will verify the actual land requisitioned and discuss the compensation standards and resettlement schemes. At the same time, the farms shall organize democratic activities in discussing the land re-adjustment schemes, land compensation utilization schemes and benefit distribution scheme generated from the investment with land compensation.

(6) The project management office delivered the RP to each affected villages on 10th of December. The resettlement plan will also be published on ADB website for reference. In addition, a Resettlement Information Handbook (Chinese version) was prepared and distributed to the affected persons on 10th, December, so that they may understand the (i) applicable policies and regulations; (ii) entitlements; and (iii) plans for restoration of their livelihoods and living standards. This will enhance the transparency of the land acquisition and resettlement work. The resettlement information handbook contains the following information: sub-project components, scope, benefits and construction progress, the range impacted by the project, applicable laws, regulations of the People’s Republic of China relating to land acquisition and house demolition, compensation standards, entitlements, grievance procedure, plan or earning restoration, budget and plan for land acquisition and demolition etc. (refer to Annex III). These booklets were distributed to all affected people on 10th December 2005; at the same time, copies were also distributed to the local government and the sub-district offices in the project area. The public participation activities are shown in Table 9-2. Table 9-2 Public Participation

Activities Objective Time Purpose Distribution of all APs Dec. 10, 2005 Handbook district (town) meeting all APs Dec.12, 2005 discuss LA & demolition visit partial APs partial APs Dec.13-15, 2005 discuss LA & demolition consultation of public consultation in all APs Nov. 16-20, 2005 resettlement plan and district (town) restoration plan 9.3 2. Public participation plan during implementation of resettlement plan In order to suitably and promptly resolve the problems and requirement of the APs relating to land acquisition, demolition and resettlement, it is required to further discuss with APs and solicit their opinions so that all the problems can be resolved before the implementation of resettlement plan. The resettlement implementing agency shall organize meetings with public participation in a reasonable way so that every affected person may have the opportunities to discuss the issues relating to the compensation for land acquisition and demolition before signing the agreement with resettlement agency. The plan of public participation during the implementation of the resettlement plan is shown in Table 9-3.

77

Table 9-3 Plan for Public Participation

Activities Means of participation Time Executing parties Participants Remarks Contents Provide APs with outline of EA, township project construction & LA Project preparation after all APs public meetings government, villagers’ plan ; seek APs’ comments of PPTA committee LA & demolition EA, township Provide APs with final LA Public meetings & Completion of Final Report & all APs government, villagers’ reports township meetings implementation time committee Inform APs project’s progress of feasibility study or Public & township Stakeholders, Meetings with ADB’s approval for loan EA preliminary design, including meetings beneficiaries, APs beneficiaries & APs construction progress plan. Final survey for range, in-kind Direct face-face EA, township Before implementation fo LA Detail list of all assets and properties and removal interview with APs; government, villagers’ all APs & demolition plan land affected by LA and demolition In-kind survey. committee Demolition leading Inform APs of the titles, group, EA, township quantities and date of Before implementation fo LA hold meetings informing public meetings government, all APs compensation payment. & demolition plan APs’ entitlements. Villagers’s committee,

demolition company Monitor the impacts of LA & EA, township Confirm whether to demolition on beneficiaries government, villagers’ Before implementation fo LA increase or enhance the and APs, and on health as Household visit committees, Sampling investigation & demolition plan assistance or support. well. independent external

monitoring agency

79 10 Grievance 10.1 Departments accepting grievance Nanning Project Management Office, the project management office of Qingsiushan Mountain Tourist Resort Administration Committee, land administrative departments of the city’s level and Qingxiu District, independent monitoring agency etc. shall be the institutions accepting grievance. These departments must inform the APs of the persons in-charge of accepting grievance, including their names and contact (such as telephones). 10.2 Means of Grievance During the process of preparing and implementing the resettlement plan, public participation shall be encouraged. However, there would be some unforeseen issues happening during such process. In order to effectively settle the issues and ensure the smooth implementation of the project construction and land acquisition, an effective and transparent channel for lodging complaints and grievance has been established. In this connection, the procedure contains the following stages: ¾ Stage 1 Any infringement on the entitlements of the displaced people during removal, they may lodge complaints to the farms or the project resettlement office of Qingsiushan Mountain Tourist Resort Administration Committee in verbal or written forms. If such in verbal form, the farm’s committee shall shall record the case in written and accept it. The above grievance shall be answered or explained within three days; if coordination needed, the issue shall be settled within two weeks. ¾ Stage 2 If the persons who lodge the complaints are not satisfied with the results of stage 1, they may lodge grievance to Qingsiushan Mountain Tourist Resort Administration Committee. The later shall, after receiving the decision, make resolution within two weeks. ¾ Stage 3 If the affected people are still unsatisfactory with the resolution made by the Qingsiushan Mountain Tourist Resort Administration Committee , they may lodge grievance to Nanning project resettlement office. The later, after receiving such resolution, shall make comments within two weeks. ¾ Stage 4 Finally, if the AP is still dissatisfied with the above decision, he can appeal to the People’s Court in accordance with Civil Procedure Act after receiving the decision.

The displaced people shall lodge any grievances that are related to impacts, standards and rates of compensation processes, rehabilitation measures, etc. . Relevant institutions shall accept the complaints and grievance lodged by APs. The charges as incurred from the process shall be covered by the contingency of the project land acquisition and demolition office in a reasonable way. Institutional units may appeal to the competent department.

Villagers committee Resettlement Office of Qingxiushan Adm. Committee

Qingxiushan Adm. Committee

Nanning ADB Resettlement Management Office

Local court

Diagram 10.1 Means of Grievance During the whole process of project construction, these grievance procedures remain valid so that the APs may deal with relevant issues. Through the public meetings and the resettlement information booklet, the affected people shall be informed of their rights for grievance and appeal. At the same time, the procedure for appeal and grievance shall be publicized through media among the affected people.

81 11 Monitoring and Evaluation For the effective implementation of the resettlement plan and realize the target of proper resettlement, based on the resettlement policies of ADB, this sub-project will undertake regular monitoring and evaluation for the land acquisition, demolition and resettlement activities. The monitoring consists of two parts respectively of resettlement institution internal monitoring and external monitoring. The monitoring reports prepared by the project management office and the external M&E agency should be submitted to ADB for review and comments by ECRD Resettlement Specialist. Copies should be sent to RSES.

Internal monitoring shall be performed by Nanning project management office, the Administration Committee of Qingxiushan Mountain Tourist Resort and its resettlement office so as to ensure that all responsible agencies may follow the resettlement plan and the time schedule for land acquisition, demolition and resettlement. The target of internal monitoring is to ensure that the relevant resettlement institutions may be well provided with effective functions during the process of implementation. The external monitoring and evaluation are to undertake regular external monitoring and evaluation of the land acquisition and resettlement activities. Such works shall be conducted by an external monitoring institution entrusted by the project implementing agency and accepted by ADB. The contents of external monitoring are: (1) operational efficiency of resettlement implementing agency; (2) progress of land acquisition and resettlement implementation; (3) compensation and restoration for permanent land occupation, temporary land occupation and demolished houses; and (4) tracing investigation and analysis of the production and living standards of the APs. External monitoring refers to all the monitoring activities conducted by the independent agency that evaluates the land acquisition and resettlement from the comprehensive and long-term perspectives. The external monitoring agency shall follow up the resettlement activities of this sub-project with the purpose to evaluate the resettlement activities, including (1) whether observe the relevant laws and regulations of the State applicable to land acquisition and resettlement; (2) whether observe the resettlement policy of ADB; and (3) whether restore and improve the production and livelihoods of APs. The external monitoring agency shall provide assessments and recommendations to the project management office so that the problems as arising from the resettlement implementation shall be resolved promptly. 11.1 Internal monitoring and examination The project management office shall establish an internal monitoring mechanism to monitor the resettlement activities. The project management office shall establish the basic data base for resettlement that is used to prepare the resettlement plan, monitor the APs and undertake internal monitoring throughout the entire process of land acquisition, demolition and resettlement. The internal monitoring evaluation shall be conducted on quarterly basis according to ADB’s requirement, and the internal monitoring report shall be submitted to ADB.

11.1.1 Implementation Procedures During the implementation, the resettlement office of the Administration Committee of Qingxiushan Mountain Tourist Resort shall promptly report the activities and the implementation progress to Nanning project management office for the purpose of keeping the continuity of the monitoring activities. These information shall be based on the samples and information that are collected and recorded by the monitoring agency, including the information about the resettlement and restoration of the displaced people who are affected by land acquisition, temporary land occupation and house demolition etc. During the above monitoring process, through provision and submission of the format information, an efficient channel of information exchange from the resettlement office of Administration Committee of Qingxiushan Mountain Tourist Resort, then Administration Committee of Qingxiushan Mountain Tourist Resort to Nanning project management office can be ensured. 11.1.2 Monitoring contents ¾ payment of compensation to APs and villagers. ¾ Resettlement progress ¾ observing the policies specified in resettlement plan ¾ public participation and discussion by displaced people during implementation. ¾ staffing, training, schedule and working efficiency of the resettlement institutions. ¾ Dealing with complaints and follow requirement. 11.1.3 Staffing Chapter 6 has illustrated the staffing establishment for land acquisition and resettlement. The staffing establishment of the institution responsible for monitoring and data processing are shown in Table 11-1. IA will prepare and submit Resettlement Completion Report to ADB. Table 11-1 Staffing of Implementing Agency for Monitoring

high-peak staff No. institution full-time staff (person) (person) Nanning Resettlement 1 1 2 Management Office Qingxiushan Mountain Tourist 2 Resort Administration 1 3 Committee Resettlement office of Qingxiushan Mountain Tourist 3 2 4 Resort Administration Committee 11.2 External Monitoring External monitoring agency shall conduct the monitoring activities on the

83 basis of the results of survey. These dada shall be developed by survey and design agencies and used by resettlement implementation institutions. 11.2.1 Institutions and responsibilities Nanning project management office shall entrust an experienced university or design institute acceptable to ADB as the resettlement external monitoring agency for the sub-project. This agency shall be responsible for tracing, monitoring and evaluating the activities of implementing the resettlement plan, as well as for providing consultancy reviews for policy making of the sub-project. The terms of reference for external monitoring and evaluation are shown in Annex I. (1) Baseline investigation The external monitoring agency shall conduct the required baseline investigation of the farms, displaced people and houses affected by the land acquisition of this sub-project. From which, the baseline information of the production and livelihoods levels of the displaced people shall be assembled, including the levels of livelihoods, production and income. The investigation of production and living levels shall be conducted annually to follow up the changes of the displaced people in this connection. This is to adopt the methods of typical sample follow-up survey (samples be selected at random), casual interviewing and site visit etc. to acquire necessary relevant information. Accordingly, the statistical analysis shall be made on this basis, and thus the evaluation shall be made. (2) Regular monitoring evaluation The external monitoring agency shall, during the implementation of the resettlement plan, conduct regular follow-up monitoring of the resettlement twice a year. Such shall be done through site observation, sample follow-up investigation and casual interviewing of displaced people. The following activities shall be monitored: ¾ payment and amount of compensation; ¾ training; ¾ new livelihood and employment; ¾ production and living levels of displaced people; ¾ schedule of the above items; ¾ social psychology of displaced people; ¾ institutional organizations for resettlement. (3) Public consultation The external monitoring agency shall participate in the public consultation meetings during the preparation of resettlement plan and its implementation, through which, it can evaluate the effects of the public participation. (4) Complaints The external monitoring agency shall pay site visits frequently, inquire about the results of resolution from the project office and the implementing agencies that accept the complaints. Occasionally, the agency may interview the displaced

people who have complaints and, aiming at the existing problems, propose measures and suggestions for improvement. Such will help the resettlement implementation be more effective. 11.2.2 Procedures ¾ prepare terms of reference for monitoring(see annex 1). ¾ prepare outline and tabular formats for survey. ¾ design the sample survey scheme and define typical displaced household. ¾ baseline investigation and prepare report for submission to ADB and EA ¾ establish monitoring evaluation information system. ¾ monitor resettlement implementing agency. ¾ typical displace household monitoring ¾ filing monitoring information and establish data base. ¾ comparative analysis ¾ prepare monitoring evaluation report

11.2.3 M&E Report Deliverables

Resettlement Reporting Due date 1 Baseline Socioeconomic Survey Report March , 2006 2 1st Monitoring Report July , 2006 3 2nd Monitoring Report Jan. 2007 4 1st Evaluation Report Jan. 2008 5 2nd Evaluation Report Jan. 2009

85

Annex I. Terms of Reference for Resettlement External Monitoring and Evaluation

1. Target and Tasks

1. The external monitoring and evaluation (M&E) undertaken by an institution independent to the resettlement execution institutions is to monitor and evaluate whether the target of the land requisition, resettlement and relocation activities are realized. Through the process, evaluation opinions and proposals will be put forward on the resettlement, housing relocation and restoration of the resettler’s living standards, and to provide prediction and alarm systems to the project management, and reflecting channel for the resettlers.

2. The external monitoring institution will report independently to ADB and to the EA. It will conduct follow-up investigations, monitoring and evaluation of the resettlement activities according to the RP and provide advice for decision-making and mitigation measures.

2. Institution and Staff

3. According to the PMO’s initial arrangements, an independent external monitoring agency that is not the prepared the RP will be entrusted to carry out the external M&E works. The institute will provide technical assistance to the PRO and conduct survey of resettlement and living standards of the APs as well as all basic monitoring work. The institute will prepare annual and semi-annual report for submission to PRO and ADB.

3. Main Indicators to be Monitored and Evaluated

(1) Main Indicators for Monitoring

(i) Progress: including preparation, implementation of land requisition, housing relocation and resettlement. (ii) Quality: including civil construction quality and degree of resettlers’ satisfaction. (iii) Investment: including allocation and use of funds.

(2) Main Indicators for Evaluation

(i) Economic conditions: household economic development before and after resettlement, including assets, production materials, subsistence materials, income, etc. (ii) Environmental conditions: living environment before and after resettlement, including traffic, culture and education, sanitation, commercial service facilities, etc.

(iii) Employment: change in employment, including employment rate, assistance to the different APs, especially the vulnerable APs, such as impoverished families and minority families, etc. (iv) Development in community: local economy in resettlement host sites, environmental development, neighborhood relation, and public opinions after resettlement. (v) Conditions of Vulnerable Groups and Minorities: including before and after situations of ethnic minorities, poor households, disabled, elderly, children, women, etc.

4. Monitoring and Evaluation Measures

4. Monitoring and evaluation will be performed on the basis of the survey data provided by the survey design institution and resettlement implementation institutions. With an overall understanding of the situation, the evaluation will be performed by sample surveys, key informant interviews and rapid rural appraisal techniques. Typical samples, including resettled households, affected villages and Townships will be selected to establish an evaluation index system for different types of APs. Experienced experts will be invited to decide in a back-to-back way the weights for different indexes. Referring to the updated research output on living quality both in China and abroad, the indexes will be non-dimensionally treated, and the survey results will be analyzed and the computation results evaluated and compared. In addition to typical samples, there will also be focused investigation of vulnerable groups.

5. Generally, the external monitoring and evaluation institution will carry out the following work.

(1) Survey of resettlers’ living standards

6. A base-line survey will be conducted for this project, including the collection of selected samples of the base-line living standards of the resettlers. (The preliminary samples will be randomly collected). The living standard will be investigated once a year to monitor the variation in the resettlers’ living standards. The necessary data can be obtained by periodical survey, random interview and site visits, based on which statistical analysis and evaluation are performed. There will also be targeted surveys of vulnerable groups.

7. The survey comprises various indicators of living standards. Some of the indicators will be used for weighing the dynamic variation of living standards before and after the land requisition and resettlement. The selected indicators will be checked to see whether they are reasonable in reflecting the actual production and living levels in the base-line survey and are subject to modification according to the actual conditions, so as to guarantee the message obtained reflects the quality and quantity of the real situation. Sampling scale: Resettlers: 15% (of which 10% is targeted at vulnerable groups), sample villages by land requisition: 15%.

87 Holding Public Consultation

8. The independent monitoring and evaluation institution will participate in the public consultation conferences held by the villages and townships. By this method, the institution can evaluate the effectiveness the public participation and the cooperative attitude of the resettlers towards the RP implementation. Such activities will be conducted during and after the resettlement implementation.

(2) Gathering Resettlers’ Opinions

9. The independent monitoring and evaluation institution will often interview the township resettlement offices and villagers to know the opinions collected from the resettlers and interview the resettlers who have grievances. The institution will report the opinions and suggestions from affected individuals and collectives to the Project Resettlement Office, and provide advice for improvement, so that the resettlement implementation can be more smooth and effective.

(3) Other Responsibilities

10. The independent monitoring and evaluation institution has provided advice to the project resettlement office in preparation of the RP, and will monitor the following activities in the process of implementation.

(i) Houses rehabilitation Measure, (ii) Production arrangement and rehabilitation (and use of funds), (iii) Support to vulnerable groups, (iv) Relocation of private-owned shops, (v) Re-construction of special facilities, (vi) Payment and amount of the compensation, (vii) Resettlers’ transfer, (viii) Employment of laborers, (ix) Training, (x) Schedule of the items above mentioned, (xi) Organizational efficiency for the resettlement, (xii) Use of compensation of the collective-owned land (xiii) Resettlers’ incomes, expenditures, and assets (xiv) Employment of the surplus laborers and income increase of them. The EA does not have the right to employ the surplus laborers, but will suggest the civil construction contractors give priority to the hiring of the project affected people.

(4) Working Processes

z prepare terms of reference for monitoring z prepare outline and tabular formats for survey. z design the sample survey scheme and define typical displaced household. z baseline investigation and prepare report for submission to ADB and EA z establish monitoring evaluation information system. z monitor resettlement implementing agency.

z typical displace household monitoring z filing monitoring information and establish data base. z comparative analysis z prepare monitoring evaluation report

(5) M&E Report Deliverables

Resettlement Reporting Due data Baseline Socioeconomic Survey 1 March , 2006 Report 2 1st Monitoring Report July , 2006 3 2nd Monitoring Report Jan. 2007 4 1st Evaluation Report Jan. 2008 5 2nd Evaluation Report Jan. 2009

89 Annex II. Sketch Map of Land Acquisition

Annex III Resettlement Information Handbook

Nanning Qingxiushan Mountain Ecological Protection Sub-Project

Resettlement Information Handbook

May 2005 Nanning – P. R. China

1 Introduction

1.1 Brief introduction to the project Qingxiushan Mountain Ecological Protection Sub-project aims to safeguard the perpetual stability of Nanning city, realize the sustainable development and high harmony between the urban rapid economic growth and environmental protection, and between natural ecology and human ecology as well. Through re-afforestation, infrastructure construction and the adoption of ecological activities for the improvement of the environmental quality, it will further perfect and upgrade the ecological function as the “green lung of the city” of the mountain. This sub-project contains the components of afforestation, infrastructure construction and supporting facilities. Details are shown in Table 1-1. Table 1-1 Summary of Components of Qingxiushan Mountain Ecological Protection Sub-project

Components Contents Afforestation artificial afforestation LA, house demolition 600m² arboreal mix improvement & temporary houses LA & demolition of temporary Seedling base simple houses without LA & demolition; sewage system temporary cutting of state-owned road. infrastructure Forest protection facilities without LA & demolition Environmental monitoring without LA & demolition facilities Information management without LA & demolition system road improvement without LA & demolition power supply without LA & demolition supporting facilities tele-communication without LA & demolition other equipments without LA & demolition Construction plan of the sub-project: Construction period is 4 years, i.e. 2006-2009. Arrangement of construction progress: 30.0% in 2006; 30.0% in 2007; 20.0% in 2008; 20% in 2009. 1.2 Project impacts The project is located in Qingxiu District of Nanning city The project area covers the administrative zone of Qingxiushan Mountain Scenic Resort, Dongfeng Horticulture Farm and Fengling Horticulture Farm. The project covers a total area of 19.4km2, where ecological improvement and sewage system will be implemented. Of which, the ecological improvement will be conducted mainly in the administrative zone of Qingxiushan Mountain Scenic Resort with an area of 4.1 km2. Land

1 acquisition related with the horticulture farms shall be conducted as a whole better for general management of the project. Thus, the horticulture farms will play a radioactive leading role for the project. Dongfeng Horticulture Farm and Fengling Horticulture Farm will be affected by land acquisition. The project needs to acquire total land of 79.92hm2，including 21.92 hm2 of state-owned land of Dongfeng Horticulture Farm (accounting for 27.4%), 58.0 hm2 of collective-owned land of Fengling Horticulture Farm (accounting for 72.6％ ). According to types of land, dry land is 11.95 hm2 （accounting for 15.0％），bamboo grove 1.62 hm2（2.0%），orchards 42.13 hm2 （52.7%），forestland 11.04 hm（2 13.8％）， barren hills suitable for forestation 13.18 hm2（16.5％）.The affected households amount to 54, covering 174 persons. The demolished rural houses of brick concrete structure will be 600m2 involving three households of 11 persons who are also affected by land acquisition. The demolished temporary shelters will be 1506m2. As a whole, the direct affected population covers 54 households inclusive of 174 persons. In addition, there are totally 3 types of infrastructure facilities and land-attached structures affected by the project construction. 1.3 Total project investment and fund sources The total investment of the project is RMB207.9706 million, among which, USD5.8 million shall be from ADB’s loans, and the local counterpart funds of RMB 159.8306 million shall be from the financial appropriation from the provincial and municipal governments, special funds from the central government and bank loans. The total cost for land acquisition and resettlement shall be RMB 99.8912 million, all of them shall be mobilized from domestic bank loans and financial appropriation.

2 Laws, policies and compensation standards for resettlement The resettlement policies of this project are based on the laws and regulations of the governments of the People’s Republic of China as well as the policy on involuntary resettlement of ADB. 2.1 Policy framework for resettlement In China, the laws and policy for land acquisition and relocation are stipulated in three levels. The first level is the basic law framework stipulated by the State, including the corresponding regulations and implementation guidelines. The second level is the exclusive local laws and regulations set to carry the laws and policies of the State. The third level is the specific regulations and provisions formulated by municipal and county’s governments exclusively for some definite periods or projects.

2.1.1 Laws for resettlement

Land Administration Law of the People’s Republic of China (effected from January 1 of 1999).

2.1.2 Legal basis for resettlement

Regulations for Implementation of Land Administration Law of the People’s Republic of China (effected from January 1 of 1999). Administrative Regulations for Urban Building Demolition and Relocation (effected from Nov. 11, 2001). Methods of Guangxi Zhuang Autonomous Region on Implementation of Land Administration Law of the People’s Republic of China (effected from September 1 of 2001) Provisions of Guangxi Zhuang Autonomous Region on Implementation of Administrative Regulations for Urban Building Demolition and Relocation (Decree No.4 of the People’s Government of Guangxi Zhuang Autonomous Region, 2003). Implementation Methods for Management of Urban Building Demolition and Relocation (try-out), Decree No.17 of the People’s Government of Nanning City, effected from July 1 of 2003. Provisions for Acquisition of Land of Collective Ownership of Nanning City, effected from September 25 of 1996. Provisions for Acquisition of Land of Collective Ownership of Nanning City (Revised), effected from January 1 of 2003. Provisions of the People’s Republic of China on Tax on Occupation of Cultivated Land

3 2.1.3 Policy basis

Methods for Announcement of Land Acquisition approved by the No.9 session of ministerial meeting of the Ministry of Land and Resources on October 18 of 2001 and effected from January 1 of 2002. Decision of the State Council on Deepening Reform and Strengthening Land Administration, Ref. GF[2004]28. Circular of the Ministry of Land and Resources on Management of Land Acquisition Compensation, Ref. GTZF[2004]58. Guidelines for Strengthening Land Acquisition Compensation and Relocation System, Ref.GTZF[2004]238. Management Regulations on Evaluation of House Demolition of Nanning City, August 15 of 2004. Methods of Compensation and Relocation for Acquisition of Collective Land and House Demolition, Ref.NFF[2004]106 Reviews on the Issues of Compensation and Relocation for Acquisition of Collective Land and House Demolition of Nanning City, Ref.NGTZF[2005]1 Circular of the People’s Government of Nanning City on Further Strengthen the Management of House Demolitions in Urban Areas, Ref.NFF[2004]153 Circular on Publishing Market Prices and Corresponding Coefficients of Real Estate of Nanning City, Ref.NJ[2004]30. Reviews on the Issues of House Demolition Compensation and Relocation in Urban Areas of Nanning City, Ref.[2004]32.

2.1.4 Reference

Policy on Involuntary Resettlement of Asian Development Bank 2.2 Compensation policy and standards for this sub-project In order to practically attend to the works of land acquisition and demolition of Qingxiushan ecological protection sub-project, ensure the smooth progress of the project construction financed by ADB, protect the legal titles and benefits of the affected units and people, this policy is formulated in accordance with relevant laws and regulations, such as Land Administration Law of the People’s Republic of China, Administrative Regulations for Urban Building Demolition and Relocation, Methods of Compensation and Resettlement for Acquisition of Collective Land and House Dismantling (try-out), Ref.NFF[2003]146, Circular on Publishing Market Prices and Corresponding Coefficients of Real Estate of Nanning City, Reviews on the Issues of House Demolition Compensation and Relocation in Urban Areas of Nanning City, Implementation Methods for Management of Urban Building Demolition and Relocation (try-out) etc., as well as Policy on Involuntary Resettlement of Asian

Development Bank, plus the actualities of Nanning City and this sub-project itself. The purpose is to ensure that no one will permanently lose his job due to the construction of this sub-project. This policy shall be applicable to any land acquisition and demolition of houses that are built on the state-owned and /or collectively-owned land within the planned range of this sub-project, as well as to the relevant compensation and /or resettlement for the affected units and people.

2.2.1 Identification of eligibility

Affected people, regardless of being removed or not, shall be compensated for the following losses incurred by involuntary loss of land: (1) resettlement or loss of residing houses; (2) loss of properties; and (3) impacts on the income sources and livelihoods. All affected people by land acquisition within the project areas, including holders of the demolished buildings, tenants, enterprises, employees and land users, shall be entitled to be equally compensated and assisted. The demolition agency shall, within three days after obtaining the House Demolition License, issue the announcement of house demolition that contains the necessary texts of the range and allowable time for house demolition. At the same time, the demolition agency shall inform in written the relevant departments to suspend the following formalities relating to such demolition. . (1) Industrial and commercial registration; (2) Transfer, change and mortgage of property rights (except the in-effect verdicts issued by the court or arbitral authority); （3）Approval formalities for new construction, extension or change of the houses or land-attached structures proposed to be demolished. The allowable time for demolition resettlement compensation shall be determined by the government. The affected people will lose their land and houses due to the project construction, and therefore their livelihoods shall be also affected, for such, they shall be compensated and assisted according to the types and quantity of the losses incurred. However, the newly developed land and the newly constructed houses after the deadline shall not be compensated.

2.2.2 Compensation standards for acquisition of rural collectively-owned land

Land compensation must be made for the acquisition of the collectively-owned land. Compensation for land acquisition shall include land compensation, resettlement subsidies as well as compensation for crops and land-attached structures. Resettlement subsidies = individual land unit price × land area – land compensation.

5 The individual land unit price shall be defined according to the average regional land price and the average per-capita cultivated land coefficient of the rural collective economic organizations whose land proposed to be requisitioned, i.e. individual land price = average regional land price × the average per-capita cultivated land coefficient. Details are shown in Table 2-1, Table 2-2, and Table 2-3. Table 2-1 Average Regional Land Acquisition Price average regional land acquisition price types of land (RMB/mu) Dry land 35000 bamboo grove 20000 orchard land 36000 forest land 20000 barren hills suitable for forestation 20000

Table 2-2 Summary of Average Per-capita Cultivated Land Coefficient Average per-capita Over 0.45 (0.45 0.45-0.3 (0.3 below 0.3 cultivated land excluded) included) (mu) modification 1.0 1.2 1.4 ratio

Table 2-3 Compensation Standards for Crops and Land Attachments

types of land crops / land attachment (RMB/mu) Dry land 1500 bamboo grove 3000 orchard land 4000 forest land 2500 barren hills suitable for forestation /

2.2.3 Acquisition of state-owned land

Occupation of state-owned land by the project shall be compensated in the form of monetary compensation properly. According to Method of Guangxi Zhuang Autonomous Region on Implementation of Land Administration Law of the People’s Republic of China, as for the legal utilization of the state-owned agricultural, forest, animal husbandry and fishery lands by construction project, the land compensation and resettlement subsidies shall be at 70% of the amount

10 cultivated land include paddy field (incl. Field depending on rainfall and irrigated land), dry land and vegetable land. Acquisition of orchard and fish ponds shall be compensated as per the average per-capita cultivated land coefficient. Acquisition of construction use land and unused land shall not apply the modification of the average per-capita cultivated land coefficient; acquisition of agricultural facilities land shall be compensated as per the standards of acquisition of construction use land.

compensated for the acquisition of same-category collectively-owned land; compensation for crops and land-attached structures in this connection shall follow the regulations as designated for acquisition of collectively-owned land.

2.2.4 Relevant charges and taxes relating to land acquisition

In addition to the above compensation for land acquisition, other necessary charges must be paid, including land administration fees, farmland occupation tax, development and construction funds for new vegetable plots and fish ponds, farmland reclamation charges, land acquisition service charges and urban construction charges etc. The details are shown in Table 2-4.

Land administration fees shall be collected as per Ref.GJFZ[1994]210, Ref.GJFZ[2001]250, Ref.GCYWZ[1999]12 etc., the charge rate shall be 2.8% of the basic land compensation.

Farmland occupation tax shall be collected as per Ref. GZF[1987]88 at the standard rate of RMB7/m2.

The collection of development and construction funds for new vegetable plots and fish ponds shall be based on Ref. Memo[2003]1 of the Standing Committee of the people’s government of Nanning city at the rate of RMB10000/mu.

Farmland reclamation charges shall be computed as per Ref. GJZ[2001]138 at the rate of RMB30/m2 for paddy fields and vegetable land while RMB20/m2 for dry land and orchard land.

Urban construction support charges shall be computed as per RMB15000/mu.

Land acquisition service charges shall be computed as per RMB2/m2.

Table 2-4 Summary of Relevant Taxes and Charges Relating to Land Acquisition

Items Unit Standards land administration fees Land basic compensation 2.8% (RMB10000) Farmland occupation tax RMB/m2 7 Development & construction funds for RMB10000/mu 1 new vegetable plots and fish ponds Paddy fields & RMB/m2 30 Farmland reclamation vegetable charges land

7 Items Unit Standards Dry land & RMB/m2 20 orchard land Urban construction support charges RMB10000/mu 1.5 Land acquisition service charges RMB/m2 2

2.2.5 Compensation standards for demolition of rural houses

Demolition of the legal houses built on the collective land shall be resettled in the means of monetary compensation, exchange of property rights or house sites etc. Removal of residential houses shall be compensated with transition subsidies, removal subsidies and time-lost compensation etc. Demolition of temporary simple houses shall be compensated with demolition time-lost subsidies and removal subsidies. 1. Compensation standards for demolition of residential houses built on collectively-owned land (land included). Table 2-5 Compensation Standards for Demolition of Residential Houses Built on Collectively-owned Land (land included) Structure Compensation standard (RMB/m2) brick and concrete 1550 2. Standards for replacement costs for demolition of houses built on collectively-owned land (compensation standards for reconstruction on house sites) Demolition of the legal houses built on the collective land shall be compensated at full replacement cost plus a plot of free house sites if choosing the form of compensation in providing house site instead of monetary compensation. Land acquisition compensation shall be disposed by the village collective organization in general. The details are shown in Table 2-6. Table 2-6 Standards for Replacement Costs for Demolition of Houses Built on Rural Collectively-owned Land (land price excluded) structure of residential house standard (RMB/m2) brick and concrete 450

3. Standards for subsidies for demolition of the houses built on collectively-own land Demolition of houses shall be compensated with transition subsidies, removal subsidies and time-lost compensation etc. Details are shown in Table 2-7. Table 2-7 Standards for Subsidies for Demolition of Houses Built on Collectively-owned Land

Items Unit Standards Remarks temporary transition RMB/month . 450 subsidies household removal subsidies (incl. RMB/m2 8 as per house Temporary simple houses) construction area removal time-lost subsidies RMB/household. 150 (incl. Temporary simple time houses) reward for advance removal RMB/household 4000 Removal charges for RMB/household 500 telephone, cable TV and broad band etc.; 4. Compensation standards for demolition of temporary simple houses Table 2-8 Compensation Standards for Demolition of Temporary Simple Houses

Type Standard (RMB/m2) Temporary simple houses 180

2.2.6 Compensation standards for land attachments

Demolition of land attachments shall be compensated in cash at replacement cost. Details are shown in Table 2-9. Table 2-9 Compensation standards for land attachments Compensation Types Unit Standards (RMB/unit) water container nos 1600 septic tank nos 1500 well nos 1200

9 3 Institutional framework for resettlement actions 3.1 Institutional establishment In order to ensure the smooth implementation and achieve expected results for the Resettlement Plan, during the project implementation, it is required to establish a vertical institutional organization to plan, coordinate and monitor the resettlement activities. The institutional organizations that are responsible for the land acquisition and demolition resettlement are: (1) Nanning ADB Resettlement Management Office; (2) Qingsiushan Mountain Tourist Resort Administration Committee (3) Resettlement office of Qingsiushan Mountain Tourist Resort Administration Committee; (4) Sichuan Forestry Survey and Design Institute and Guangxi Architectural Comprehensive Design & Research Institute (5) Horticulture farms (6) External monitoring institution.

Nanning ADB Resettlement Management Office

Internal Sichuan Forestry S&D Design Institute / monitorin Guangxi Archi. Compreh. . D & R Institute

Qingxiushan Administration Committee External monitoring agency

Resettlement Office of Qingxiushan Ad. Committee

Horticulture farms

Diagram 3.1 Institutional Diagram for Project Land Acquisition and Demolition

3.2 Responsibilities of institutional organizations ¾ Nanning ADB Resettlement Management Office (1) Guide the resettlement according to the ADB’s guidelines for resettlement and report to ADB the resettlement implementation; (2) Examine and approve the resettlement plan and implementation scheme proposed by Qingsiushan Mountain Tourist Resort Administration Committee. (3) Supervise the progress of resettlement implementation and report the situation to ADB. ¾ Qingsiushan Mountain Tourist Resort Administration Committee (1) Entrust design units to define the range impacted by the sub-project. (2) Organize social and economic survey; (3) Formulate the resettlement plan and implementation scheme; (4) Supervise and inspect the implementation of the resettlement plan as well as the payment and utilization of the compensation funds; (5) Coordinate and deal with various problems arising from the resettlement; and (6) Execute the project internal monitoring. ¾ Resettlement office of Qingsiushan Mountain Tourist Resort Administration Committee (1) Organize the work of land acquisition and resettlement according to the arrangement developed by Qingsiushan Mountain Tourist Resort Administration Committee. (2) Investigate resettlement implementation, listen to the comments from relevant units and individuals, deal with the grievance and take necessary actions; and (3) Make prompt report to Qingsiushan Mountain Tourist Resort Administration Committee the latest situation and problems, as well as make reviews and proposals. (4) Assist internal monitoring. ¾ Sichuan Forestry Survey and Design Institute and Guangxi Architectural Comprehensive Design & Research Institute (1) Optimize design to mitigate the project impacts. (2) Define the range of impacts caused by land acquisition and house demolition. ¾ Resettlement working group of villagers’ committee

11 (1) Participate in the social and economic survey; (2) Organize the public discussion and stress the awareness campaign for land acquisition policies; (3) Select the resettlement location and arrange house sites for affected people; (4) Be responsible for land adjustment and distribution, organize the resettlement activities such as production development and training etc.; (5) Report to the higher authorities the comments and proposals of the affected people; (6) Report the progress of resettlement; and (7) Provide with necessary assistance to the difficulty households. ¾ External monitoring institution The external monitoring institution shall be responsible for the monitoring of resettlement, listen to the comments of the affected units and individual, report and propose to the project management office and the implementing agency, including: (1) Investigate the existing social and economic conditions of the planned area; (2) Estimate the detail impacts of the project and the situation of restoration of production and living; (3) Analyze the collected data; and (4) Monitor the whole process of the implementation of the resettlement plan and report to the project office and implementing agency the progress of resettlement plan.

4 Progress plan for resettlement actions 4.1 Linking between resettlement and project construction Based on the project construction progress, the project shall be completed in four periods from 2006 to 2009. The plan for land acquisition, demolition and resettlement shall be in consistence with the construction of every components of the sub-project, which shall start from 2006 and end in 2009. The principle for progress arrangement are: ¾ Land acquisition must be completed one month prior to the land use by the project. The starting time for land acquisition shall be determined according to the actual work of land acquisition, house demolition and resettlement; ¾ The project construction shall leave adequate time for land acquisition, house demolition and resettlement. 4.2 Overall progress plan for land acquisition, demolition and resettlement The overall progress plan for land acquisition, demolition and resettlement shall be developed based on the progress of preparation and implementation of land acquisition, demolition and resettlement. However, this schedule shall be adjusted accordingly if the overall progress deviates. Details are shown in Table 4-1.

13

Table 4-1 Schedule for Land Acquisition and House Demolition for the Sub-project

5 Grievance 5.1 Departments accepting grievance Nanning Project Management Office, the project management office of Qingsiushan Mountain Tourist Resort Administration Committee, land administrative departments of the city’s level and Qingxiu District, independent monitoring agency etc. shall be the institutions accepting grievance. These departments must inform the APs of the persons in-charge of accepting grievance, including their names and contact (such as telephones). 5.2 Means of Grievance During the process of preparing and implementing the resettlement plan, public participation shall be encouraged. However, there would be some unforeseen issues happening during such process. In order to effectively settle the issues and ensure the smooth implementation of the project construction and land acquisition, an effective and transparent channel for lodging complaints and grievance has been established. In this connection, the procedure contains the following stages: ¾ Stage 1 Any infringement on the entitlements of the displaced people during removal, they may lodge complaints to the farms or the project resettlement office of Qingsiushan Mountain Tourist Resort Administration Committee in verbal or written forms. If such in verbal form, the farm’s committee shall record the case in written and accept it. The above grievance shall be answered or explained within three days; if coordination needed, the issue shall be settled within two weeks. ¾ Stage 2 If the persons who lodge the complaints are not satisfied with the results of stage 1, they may lodge grievance to Qingsiushan Mountain Tourist Resort Administration Committee. The later shall, after receiving the decision, make resolution within two weeks. ¾ Stage 3 If the affected people are still unsatisfactory with the resolution made by the Qingsiushan Mountain Tourist Resort Administration Committee , they may lodge grievance to Nanning project resettlement office. The later, after receiving such resolution, shall make comments within two weeks. ¾ Stage 4 Finally, if the AP is still dissatisfied with the above decision, he can appeal to the People’s Court in accordance with Civil Procedure Act after receiving the decision.

15 The displaced people shall lodge any grievances that are related to standards and rates of compensation. Relevant institutions shall accept the complains and grievance lodged by APs. The charges as incurred from the such process shall be covered by the contingency of the project land acquisition and demolition office in a reasonable way. Institutional units may appeal to the competent department. The means for grievance are shown in Diagram 5.1.

Villagers committee Resettlement Off. Of Qingxiushan Ad. Committee

Qingxiushan Ad. Committee

Nanning ADB Resettlement Management Office

Local court

Diagram 5.1 Means of Grievance During the whole process of project construction, these grievance procedures remain valid so that the APs may deal with relevant issues. Through the public meetings and the resettlement information booklet, the affected people shall be informed of their rights for grievance and appeal. At the same time, the procedure for appeal and grievance shall be publicized through media among the affected people.