ASIAN DEVELOPMENT BANK RESETTLEMENT PLAN (UPDATED FINAL VERSION ) NANNING KELIJIANG RIVER COMPREHENSIVE ENVIRONMENTAL UPGRADING SUBPROJECT OF GUANGXI NANNING URBAN ENVIRONMENTAL UPGRADING PROJECT IN THE PEOPLE'S REPUBLIC OF CHINA NANNING XIANGSIHU NEW DISTRICT CONSTRUCTION AND DEVELOPMENT CO. LTD. 15 NOVEMBER, 2007 NANNING – P. R. CHINA i 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 subproject. Therefore, it must be implemented in compliance with the guidelines and policies of Asian Development Bank for social safeguards. 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 subproject. 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 Vice Mayor of the People’s Government of Nanning City ___________________ (Signature) __________________ (date) i Abbreviations APs Affected Persons AVs Affected Villages Asian Development Bank ADB DMS Detailed Measurement Survey M&E Monitoring and Evaluation NMG Nanning Municipality Government PMO Project Management Office RP Resettlement Plan VCs Village Committees Notes Currency Unit -Yuan(Y) Y1.00 =$0.12 $1.00 =Y7.70 I ha =15mu I 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 and 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 standards and, at least to restore their production and livelihood after project implementation. Project Areas. Project areas refer to places where the project is located, normally referring to the administrative areas at or under the county level (city, county and town). The project areas of this Project cover Yongxin District and Nanning New & High-tech Industrial Development Zone of Nanning City, including Xinxu Town, Shibu Town and Shangyao Subdistrict Office. Affected People. Affected people (APs) refer to the group of people, due to the project construction, (1) whose living standards are adversely affected or, (2) whose houses, land (including the house land, farmland and grassland of their ownership and titles, as well as their various types of movable and immovable properties are temporarily or permanently acquired and occupied, or (3) whose production, operation, working and living are adversely affected. “Affected People” refer to the individuals who conform to the definition of the “Affected Population”. APs may refer to natural persons or legal persons (for example a company or a public institution etc.). Identification of the APs shall not be confined to those who conduct productive activities or reside in the affected areas being with or without legal registration and approval, nor be confined to those who do have or do not have the ownership of these properties. Therefore, APs shall include: (1) People who are affected by the project construction, regardless of the legal ownership of the properties that are acquired by the project. (2) People who live in the affected areas even without being approved. Therefore, all these people shall be considered and registered as the APs, regardless of their legal status of the properties, land and location. Restoration. Restoration refers to the recovery of the resources capacities of the APs, enabling them to continue their productive activities at the levels that are higher than or at least not less than those they had when the project was not constructed and, at least restore to or be higher than their previous living standards. Replacement. Replacement refers to making necessary arrangement for the APs for production and living, enabling them to restore to the previous productive and living standards and be benefited from the project construction. Mainly including: (1) To arrange the living areas; (2) To provide with suitable employment for the APs who have lost their jobs or seriously affected by the project; (3) To restore or compensate the productive resources that are affected by the project II construction, such as land, working site, trees and infrastructure; (4) To restore the living standards (quality) for the APs who are adversely affected by the project construction through land acquisition, indirect resettlement effects or other negative impacts; (5) To restore or compensate the private or public-own enterprises that are affected by the project, and. (6) To eliminate the negative effects on the cultural facilities and communal properties. Methods for Resettlement: (1) Monetary resettlement. This is to make compensation to villagers who will dispose the money at their will in restoring production and living. Monetary compensation accompanied by suitable resettlement shall be made for the losses of business investment and equipment incurred to the floating population. (2) Compensation in-kind. This refers to the subsidies in kind. Normally, the demolition unit shall construct comprehensive commercial and residential buildings for the purpose of resettlement; or provide with commercial and industrial buildings for the rural collective economic organizations to manage. (3) Resettlement with reserved land. This is also called to reserve industrial land. It serves as a complementation to the monetary compensation. Subject to the requirement of planning, some lands shall be reserved preferentially for rural collective organizations of which lands have been requisitioned for the purpose of development operation. The reserved land shall enable the rural collective organizations and households to gain stable benefits through legal operation. There are three types of reserved lands for resettlement: reserved state-owned land; reserved collectively-own land; reserved construction land use quota. Normally, as for these three types of reserved land resettlement, the proportion of the reserved land shall not be over 20% of the total lands that have been requisitioned by the project. (4) Re-employment resettlement for the rural people who have lost their land. The land-using units shall employ the labors; the labor administrative department shall make general arrangement; the rural people who have lost their lands are encouraged to make self-employment. (5) Resettlement through equity participation. The land acquisition compensation shall be concentrated as the business investment, and on annual basis, the rural people shall share the profits. The actual process in this connection shall be: the land acquisition and resettlement compensation shall be concentrated by the rural economic organization for special investment, such as construction of standard factory buildings and stores for leasing. The villagers group shall share the profits on regular basis each year according to respective areas of land that have been requisitioned. The shares shall be further distributed to the individual villagers. Or, the compensation shall be divided into shares and further quantified to individuals; the funds shall be operated by the rural economic organization. In this case, the annual profits shall be distributed according to the percentages of shares. (6) Social security resettlement. This is to ensure the social insurance premium in-place, i.e. making a 15-year lump-sum payment of the social insurance premium (endowment insurance, unemployment insurance and medical insurance) and a one-off payment of living subsidies. III Vulnerable groups. Vulnerable groups refer to the solitary elderly, the disabled, households headed by women, poverty-stricken families and ethnic minorities other than Zhuang. Identification of these vulnerable groups who might require special assistance is an important issue in the resettlement. (1) Poverty population. Poverty-stricken population refers to those who are below China’s poverty line, including the relative poverty-stricken population and absolute poverty-stricken population. According to the poverty identification standard of Nanning City, people with annual average income of lower than RMB650.00 (current year price) are classified as absolute poverty population, while those with annual average income between RMB650-RMB882 are classified as relative poverty population. (2) Households headed by women. Refer to the families that are without dependence on male while headed by women. In