Resettlement Plan June 2012 PRC: Anhui Chao Lake Environmental Rehabilitation Project Prepared by the Project Working Group of the Feidong County Government for the Asian Development Bank 1 CURRENCY EQUIVALENTS (as of 31 May 2012) Currency unit – yuan (CNY) CNY1.00 = $0.15749 $1.00 = CNY6.3495 ABBREVIATIONS ADB – Asian Development Bank AAOV – average annual output value AH – affected household CLMA – Chao Lake Management Authority HCCI – Hefei Coucheng Construction & Investment Co., Ltd. HECS – Hefei Engineering Consulting Service Co., Ltd. mu – a Chinese unit of measurement (15 mu = 1 ha) PMO – project management office PRC – People’s Republic of China RP – resettlement plan NOTES (i) The fiscal year (FY) of the Government of the People’s Republic of China and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2012 ends on 31 December 2012. (ii) In this report, "$" refers to US dollars. This 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. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. ADB-financed Anhui Chao Lake Environmental Rehabilitation Project Resettlement Plan for the Feidong County Chao Lake Basin (Cuozhen Town Region) Water Environment Integrated Improvement Project ADB-financed Project Working Group of the Feidong County Government May 2012 Abbreviations AAOV - Average Annual Output Value ADB - Asian Development Bank AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion CLMA Chao Lake Management Authority Hefei Cuocheng Construction & Investment HCCI - Co., Ltd. Hefei Engineering Consulting Service Co., HECS - Ltd. LEF - Land-expropriated Farmer M&E - Monitoring and Evaluation MLS - Minimum Living Security NRCR - National Research Center for Resettlement PMO - Project Management Office PRC - People’s Republic of China RIB - Resettlement Information Booklet RP - Resettlement Plan Units Currency unit = Yuan (CNY) 1.00 yuan = $0.15 1 hectare = 15 mu Executive Summary 1. Resettlement planning The Subproject is one of the subprojects of the ADB-financed Anhui Chao Lake Environmental Rehabilitation Project. The Subproject will play a significant role in benefiting residents living and working beside Chao Lake in health, welfare and economy, and promoting the improvement of the water quality of the Chao Lake basin through sustainable engineering and non-engineering measures, and be an integral part of the process of realizing the Five-year Environmental Protection Plan of the People’s Republic of China (PRC). Land acquisition and resettlement under the Subproject will involve Xianfeng Community and Xuguang Village, Cuozhen Town, Feidong County. 106.05 mu of land will be acquired for the Subproject, including 29.25 mu in Xianfeng Community (28.53 mu of irrigated land and 0.72 mu of housing land) and 76.8 mu in Xuguang Village. Total demolition area is 890.4 m2. The range of house demolition is on both sides of the Zhennan River, which is located in the old urban area of Cuozhen Town. The Subproject will break ground in 2013 and be completed in 2014, and land acquisition, house demolition, compensation and resettlement will be started in December 2012 and end in June 2013. The estimated resettlement costs of the Subproject are 9.498 million yuan (based on prices in 2011), including basic land acquisition (occupation) costs, taxes and contingencies, accounting for 8.40% of the Subproject’s budget. 2. Land occupation and house demolition The main resettlement impacts of the Subproject are permanent and temporary land occupation, and the demolition of rural residential houses and business premises, involving one village and one community in Cuozhen Town, Feidong County. 106.05 mu of collective land will be acquired for the Subproject, including 105.33 mu of cultivated land (99.32%) and 0.72 mu of housing land (0.68%); another 90 mu of land will be occupied temporarily; total demolition area is 890.4 m2, including 3 residential houses of 550 m2. House demolition will also affect two entities with a total demolished building area of 340.4 m2, but will not affect their operations. 9 types of infrastructure and ground attachments and 85 households with 339 persons will be affected by the Subproject. Only 3 households will need to be relocated. The main resettlement impacts are summarized in the table below. item Unit Quantity Permanent Collective Collective land mu 106.5 including: cultivated land acquisition mu 105.33 land Temporary land occupation mu 90 Demolition of residential house ㎡ 550 Demolition of non-residential house ㎡ 340.4 item Unit Quantity Household 82 affected by LA only Person 323 Household 1 affected by HD only Directly affected Person 4 persons Household 3 affected by LA & HD Person 12 Household 86 Total Person 339 3. Policy framework and entitlements In order to avoid or reduce negative impacts of land acquisition, adequate consultation was conducted on the potential site of the Subproject, the affected village groups and persons at the feasibility study stage. An optimum option was selected through comparison. This Resettlement Plan (RP) is based on the Land Administration Law of the PRC (2004), the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the applicable policies of Anhui Province, and ADB’s SPS (2009) SR-2. According to the above policy, and in consultation with local governments and affected persons (APs), the resettlement principles of the Subproject are: 1) Involuntary resettlement should be avoided where feasible, 2) The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project, 3) The APs are given compensation and assistance in resettlement whether legal title is available or not, 4)If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land, 5) The APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan, 6) The executing agency and an independent agency / third party should monitor the compensation, relocation and resettlement operations, 7) Vulnerable groups are provided special assistance or treatment so that they lead a better life, and all APs should have an opportunity to benefit from the project, At least two members of each AH receive skills training, including at least one woman, 8) The RP is consistent with the master plans of the affected city (district/county) and township, 9)The resettlement expenses are sufficient to cover all affected aspects. 4. Resettlement strategy Compensation for permanent land acquisition includes land compensation fees, resettlement subsidies and young crop compensation fees. In Feidong County, the uniform average annual output value (AAOV) of irrigated land, non-irrigated land and vegetable land is 1,460 yuan/mu, the compensation multiple for farmland is 22 times, including land compensation fees of 7 times and resettlement subsidies of 15 times, and that for construction land and unused land is 11 times, including land compensation fees of 5 times and resettlement subsidies of 6 times. Temporary land occupation is caused by the silt dump in the river dredging and slope protection component mainly. All temporarily occupied land is low-lying wasteland. The owner has agreed with the village to compensate for the above land at 500 yuan/mu per annum. The period of occupation will be two years. The compensation rates for demolished residential houses are 807 yuan/m2 for masonry concrete structure, 520 yuan/m2 for frame structure, 340 yuan/m2 for masonry timber structure and 180 yuan/m2 for simple structure. Moving subsidy is 300 yuan per household, transition subsidy is 3 yuan/m2 of building area specified in the certificate of house ownership per month within 18 months. Compensation for demolished business premises will be negotiated directly between the owner and the affected entities. Preliminary agreements have been reached, and the total amount of compensation of the two entities is 180,000 yuan. Income restoration measures for the APs include cash compensation, skills training and priority employment for the Subproject. Since permanent land acquisition is caused by river dredging, slope protection and wastewater collection mainly, the subproject area is linear in shape. Based on statistical analysis, the land acquired for the Subproject, though significant in amount, is scattered, and land acquisition affects the routine agricultural production and incomes of rural households much less because they have other non-farm income sources. 5. Vulnerable groups and women According to the survey, all the APs are Han people. The APs include 8 vulnerable households, which are households receiving minimum living security (MLS) support and single female-headed households. Not only the vulnerable APs will be resettled according to the implementation plan, but also certain assistance will be provided to improve their production and living conditions. The Subproject will affect 155 women. During subproject implementation, at least 30% of women will obtain unskilled jobs. In addition, women will receive equal pay for equal work like men do. However, employment of child labor is prohibited. Priority will be given to female labor in terms of skills training so as to ensure that their economic status and income. 800 APs will be trained, in which not less than 400 (50%) will be provided to female labor.