Shijianzhuang- Railway Project Public Disclosure Authorized

Resettlement Action Plan

Public Disclosure Authorized Executive Summary Public Disclosure Authorized

January 2007 Public Disclosure Authorized

Contents A. Project Introduction 1. Significance and Purpose of Project Construction 2. Project Composition 3. Measures for Avoidance or mitigation of impact due to LAR

B. Scope of Impacts 4. General 4.1 Land to be acquired 4.2 Dwelling Houses or other Buildings to be Demolited and Relocated 4.2.1 Demolition Coverage for Project 4.2.2 Demolition Coverage for Environment Impact and Environment Protection 4.3 Fixed assets taken 4.4 Businesses (and employees) affected by temporary or permanent displacement 5. Impact on Socio-Cultural Environment 5.1 Nationalities 5.2 Cultural Relics

C. Policy Objectives, Principles and Definitions 6. Laws, Rehlations and Documents 7. Policy Objectives 8. Policy Principles 9. Definition of "Affected Population" 10. Definition of "Replacement Cost "

D. Compensation 1 1. Compensation 1 1.1 Land compensation fee 11.2 Woodland 11.3 Young crop compensation 1 1.4 Relocation subsidy to householders 11.5 Compensation for loss of business 1 employment opportunities 1 1.6 Relocation of public buildings 1 1.7 Land adjustment 11.8 Training courses 11.9 Compensation qualifications and closing date

E. Rehabilitation Measures 12.1 House Demolition and Restoration Plan 12.1.1 New Site Planning, Development and Selection 12.1.2 Ways of house rehabilitation 12.1.3 Implement new village construction through relocation 12.1.4 Ways of compensation and transit 12.2 Production rehabilitation 12.3 Resettlement of enterprises and schools 12.4 Reconstruction of infrastructure I public facilities 12.5 income rehabilitation measures 12.5.1 General rules 12.5.2 STIPULATION OF INCOME RESTORATION STRATEGIES 12.5.3 INCOME RECOVERY: LAND ADJUSTMENT 12.5.4 Income restoration: use of compensation 12.5.5 In-project Employment 12.5.6 Training plan 12.6 The Vulnerable Group 12.7 Environment governance 12.8 RATIONAL ANALYSIS OF RECOVERY MEASURES F. Implementation Arrangements

13.1 Resettlement organizations 13.2 Capacity Building and Staff Training

G. Budget and Funding Arrangements

14.1 Compensation Standards 14.2 Budget Sufficiency 14.3 Fund flow

H. Consultation, Disclosure and Grievance Procedures

15.1 Public Participation 15.1.1 Public Participation in Project Preparation Phase 15.1.2 Public involvement and consulting plans in the phase of project implementation 15.2 Information Disclosure 15.3 Complaint Channel

I. Monitoring Arrangements 16. Monitoring Arrangements 16.1 Internal Monitoring 16.1.1 Organizations and Personnel 16.1.2 Monitored Contents 16.1.3 Implementation Procedure 16.2 External Monitoring and Evaluation 16.2.1 Methodology and Content 16.2.2 Sampling 16.2.3 Survey Timing 16.3 Reporting and Distribution 16.3.1 Internal Monitoring Report System and Delivery 16.3.2 External Monitoring Report System and Delivery A. Project Introduction

1. Significance and Purpose of Project Construction The project refers to the -Zhengzhou Special Passenger Line Double-track Electrification Railway Construction project. Shi-Zheng Special Passenger Line is a part of Beijing-Guangzhou Special Passenger Line- Chinese high-speed railway network consisting of "Four transverse and four longitudinal railways". As the major channel for south-north transportation of , construction of Shi-Zheng Special Passenger Line will not only fulfill separate transportation of passenger and freight, improve the passenger transportation service quality in a large range, abridge time-space distance between cities along the line, improve the service frequency and facilitate the tourists'outgoing, but also release capacity of Beijing-Guangzhou Line, effectively alleviate the tensioned freight transportation situation, and meet the passenger and freight transportationdemands of cities along the railway line and the affected areas. It is of great significance for China to implement the sustainable development strategy, enlarge radiation intensity of Bohai rim economic circle towards the central and western areas, promote the reasonable configuration of resources, drive healthy and rapid development of the national economy and improve the comprehensive national strengths of China. It is expected that this project and the relevant development activities will promote development of industry, natural resources and the tourism, create employment opportunities, increase income of the poor, and alleviate the local poverty situation. 2. Project Composition Shijiazhuang-Zhengzhou Special Passenger Line starts from Shijiazhuang City in north- the provincial city of Province and extends to the Yellow River SuperLarge Bridge (exclusive of it) in Zhengzhou in south. The trunk line of it is 355.17km long in total. It extends 204.62km within the territory of Hebei Province and 150.55km within the territory of Province. It passes by Shijiazhuang City, City and City of Hebei Province, City, City and City of Henan Province. Six stations in total will be established along the entire line. The new Xingtai Station, new Handan Station, new Anyang Station, new Hebi Station and the new Xinxiang Station are the intermediate stations. The new Gaoyi Station is the overtaking station. There are 72 super large and medium and large bridges along the trunk line of the special passenger line and they amount to 246171.75m. The length of the bridges accounts for 69.3% of the length of the trunk line. It is expected that the total costs will be RMB 35.068654 billion yuan or so. It is jointly hnded by the Ministry of Railways, Hebei Province and Henan Province. The World Bank will provide a sum of loan totalling USD 300 million. The civil engineering of the control projects will start at the beginning of 2007. The railway will be open for traffic officially at the end of May 201 1. Table 1-1 Maior technical indices SN Category Unit Propertylquantity Remarks Special passenger 0 1 Grade of the railway line 02 Total length km 335.17 200kmk and 03 Design speed kmh above 04 Expropriated land Mu 17568 13284mu of land for temporary use 8.5373 of it belongs to relocation of 05 Relocated buildings 10,000 m2 45.393 enterprise and institutional enterprises 06 Bridges Mlsite 246172/72 07 Total length of bridges % 69.3 Newly constructed 6 08 railway stations Piece M 09 Culverts 1486291481 (transverse)/site Data source: feasibility study, TSDI, September 2006. 3. Measures for Avoidance or mitigation of impact due to LAR One of key design principles in the railway line location is to reduce expropriation and house demolition as well as reconstruction as possible. Expropriation and house demolition for the project will be started early 2007, and measures for mitigation of expropriation impact include: "Approach, but not go through, the urban area": in other words, avoidance of the urban areas, towns and the highly crowded areas; The railway line will go through the side of a village, but not the center, so as to decrease the relocation of houses and buildings and occupation of fertile land and economic forests; The railway line will run parallel to the current highways or national roads to the largest extent possible and get as closer as possible to them, so as to decrease the expropriated land and obstruction to land partition and travel; Be away from or avoid the natural scenic areas, waterhead and other facilities that are sensitive to shock and noise; Makes bridges play the role of roads (the bridges account for 69.3%) to the largest extent possible in a bid to decrease the land occupation; Be helphl to improve the ambient environment of the railway line, promote the economic development and create social and economic benefits.

B. Scope of Impacts 4. General To ascertain relocation and expropriation objects and quantity of the project, based upon the expropriation and relocation scope and the expropriation and relocation indices in kind of the project listed under the Feasibility Study (First Draft) as of April 2006 of TSDI-the designer of the project, TSDI organized, during April-August 2006, the concerned persons to analyze the indices in kind of different impact targets such as people, houses, land and exclusive facilities listed under the Feasibility Study as of September 2006 and carried out the supplementary investigation. Survey method of people, land and houselbuilding: ascertain the houseslbuildings and auxiliary facilities to the concrete families based upon the Feasibility Study (First draft) as of April 2006 of TSDI as well as the foundation to divide owership limit of county (citylprefecture), township and village (resident' s committee). Full investigation into quantity of people involved and affected by houselbuilding relocation; ascertainment of land to the village (resident's committee) and supplementary inviestigation of other land types. The expropriation and relocation impact scope of the project consists of twenty-five counties (cities, prefectures), sixty townships (townships) and 316 administrative villages (resident's committee). The relocation affects and involves 22 counties (cities, prefectures), 42 counties (township) and 71 administrative villages (resident's committee). The relocation and resettlement residents total 150,873 persons of 3029 families. The lands expropriated amount to 17,568mu; the land occupied temporarily for purpose of construction amounts to 13,284mu; The area of houses/building relocated for purpose of construction of the project total 368,557m2 (where housing is 343365 m2, simple structure is 25 192 m2), 3 1,300m2 of h~useslbuildin~shall be relocated to meet the shock conformity. 162,660 units of scattered trees and a small amount of auxiliary and exclusive facilities will be influenced along the railway line will be felled. The population affected by the permanently expropriated land is 9,815 persons. 1,285 persons of them lose the ownership of all lands. The rural relocation and resettlement population is 15,087 persons and 4,134 persons will be affected by relocation and resettlement of eight schools and forty-seven enterprises. In addition, it is estimated that 984 persons will be affected by relocation and resettlement for consideration of environment protection and that 7,380 persons will be affected by the temporary land occupation. So, it is estimated currently that the population that will be affected by the project directly amounts to 37,400 persons. 4.1 Land to be acquired -The project-related expropriation and relocation consists of subgrade, barrel-drain, culverts and stations of the railway line. Generally speaking, the bridge projects of the project are 2 1-meter- wide. The subgrade projects are usually 35-46m wide to meet different heights and gradients of the subgrade projects. The station sites are usually 150-200m wide (the station line extends approximately 1,900m). The total area of the lands expropriated for the project is 17,568mu, consisting of 16,082mu arable land, 440mu garden plot, 1 Olmu woodland and 947mu land for other purposes. County (city and prefecture) and township (township) specific quantity of land expropriation is listed in Table 2. -The temporary land occupation of the project consists of land occupied temporarily for purpose of stock ground, spoil ground, facilities to meet living during the construction period and temporary roads. In total 13,284mu lands are borrowed by the project and the averge borrow period is one year. The project maintains one tracking base, sixteen beam fabrication and stock yards, thirteen graded gravel blending stations, nineteen improved soil blending stations and seven track plates prefabrication sites. The newly built construction shortcuts are 61. lkm long, the restructured construciton shortcuts are 148.5km long and the newly built railway side lines are 1.2km long. The barren mountain and slopes shall be selected as the borrow ground of the project. The nineteen borrow grounds of the project consist of fourteen slow slope wasteland and five dry lands. The farming level of 0.3-0.4m of the arable land that will be used for construction of temporary projects and borrow grounds shall be stocked aside before the construction starts. After the project is over, the surface shall be rehabilitated for farming. At the same time, the earth bag weir shall be established surrounding the temporary stock ground for protection. Consideration shall be made for the temporary projects to make them serve both the permanent and temporary purposes. The existing sites or the permanenet expropriation land and city land within the station area shall be used to the largest extent, Consideration shall be made to construct the construction shortcuts of the project for both temporary and permanet purposes, with a view to make them serve as approach station roads, village roads, railway maintenance roads. The construction vehicles shall go strictly by the specified traveling roads, so as to prevent the construction vehicles from pressing and destroying the original surface vegetation randomly during the construction period. Table 2 Checklist of land permanently expropriated for Shi-Zheng Special Passenger Line Continued Table 2 Checklist of land permanently expropriated for Shi-Zheng Special Passenger Line

are involved throughout the railway line Data source: site survey, April-August 2006; feasibility study, September 2006. Table 3 Table of configuration of the large-sized temporary auxiliary facilities and the quantity of land occupation 1 Land SN Description Unit QUantit ,ccupatior Remark

, (mu) The western side of Yageying Station of Tracking base Unit 1 175.5 Beijing-Guangzhou Railway Line Zhangye, Dongzhang Village, Yincun Village, Box beam Wangma Village, Xisu Village, Changzhangce, fabrication Unit 16 3024 Liliangzhuang, Xiying, Anyang, Nandian, yard Caozhuang, Dongqiaom, Niwan Township, Renzhuang, Liudi, Shizhai Township Graded gravel Dongying, Ximaxian, Houliu Village, Yincun Village, 723 Daliu Village, Chengshuanglou, Beiniantou, blending Unit 13 Nanshangsong, Dongwating, Daguanzhuang, station Zhouzhuang, , Zhangzhuang Prefabrication Mengcun, Beixinzhuang, Tiancun, Huanglong Village, yard of track Unit 7 420 Fengjiapo, Qi County, Langgongmiao plates Dongying, Zhaozhuang, Dongbao, Xifu Village, Improved soil Wangtongzhuang, Xin'an Village, Xizhang Village, 5 blending Dalei Village, Xingtai, Beizhao, Baita, Xizhen Village, station Dongwating, Matun, Hebi, Wangzhuang, Xinxiang,

Auto The newly built shortcuts are 61.1 km long and transportation 6 the restructured shortcuts are 148.5km long shortcuts Railway side The western side of Yageying Station of 7 km 1.2 37.5 lines Beijing-Guangzhou Railway Line Total 7,5 10.5

4.2 Dwelling Houses or other Buildings to be Demolited and Relocated 4.2.1 Demolition Coverage for Project The total area of the houses/buildings to be relocated due to construction of the project amounts to 368,557m2, including private and collectively owned houses/building. The area of the housing amounts to 343,365 m2 and that of the simple structure houses amounts to 25,192 m2. Please refer to Table 4 for county (city and ) and township (township) floor area of the various kinds of houses/buildings and auxiliary facilities to be relocated. Table 4 Checklist of houses/buildings relocated for construction of Shi-Zheng Special Passenger Line Continued Table 4 Checklist of houses/buildings relocated for construction of Shi-Zheng Special Passenger Line

Henan Province: 3 cities, 8 counties and 18 townships in

Data source: site survey, April-August 2006; feasibility study, September 2006.

Demolition Coverage for Environment Impact and Environment Protection Impact scope of noise is the areas that are located on both sides of the railway line and are less than 200m away from the centerline of the outer track. The impact scope of shock refers to the scope that is within 100m away from the centerline of the outer track. The impact scope of electromagnetic radiation for TV program signal reception is the scope that is within 80m away from the centerline of the outer track on both sides of the railway line respectively. The impact scope of shelter and reflection by the elevated line is the scope that is within 160m away from the centerline of the outer track on both sides of the railway line respectively. In order for the project to meet indoor vibration goal, additional house of 30500m2 shall be removed (according to environment impact report presented by No. 3 Railway Survey & Design Institute Nov. 2006). Other impacts can be avoided or reduced by taking some measures, so goal can be reached. Please refer to Table 5 for environment friendly relocation quantity. Table 5 Checklist of environment friendly relocation of Shi-Zheng Special 4.3 Fixed assets taken -In total 162,660 pieces of scattered trees along the railway line will be influenced, 141,160 of them are within the territory of Hebei Province and 21,500 are within the territory of Henan Province. In total 205 tombs shall be relocated for construction of the project, 120 of them are within the territory of Hebei Province and 85 of them are within the territory of Henan Province. -The rural production and living facilities affected by construction of the project consist mainly of machinery farming roads, footpath, motor-pumped well and irrigation channels. Where the project necessarily occupies 530 pumped wells in total (320 wells in Hebei Province and 210 wells in Henan Province). -The appropriate irrigation and drainage culverts shall be set at sections where the line passes by the flood drainage ditch and the agricultural irrigation channels. When the project occupies or covers the above-mentioned facilities, the moval and restructuring shall be carried out to assure that functions of the original facilities will not be affected. -After the project is implemented, it is evitable that the subgrade and station will partition the villages and arable land, inconveniencing the travel and work of the residents. It is designed to be a hlly flyover project and sections where it crosses the current roads and the planned roads are designed with bridges or culverts. The bridge culverts may be used as passengers of residents on both sides of the railway and impact will be decreased. -The barrel-drain shall be designed in line with the local situation, economical and suitable. They shall be made at sections with good landform and good geological conditions to the largest extent possible. The outlet of the barrel-drain shall be introduced to the natural channels. Efforts shall be made to prevent the water from entering into the farmland and villages to harrnlinfluence the agricultural production and the people's living. -The construction shortcuts for both permanent and temporary purposes of the project shall be taken into consideration, so as to find out the way to use them as station-approach roads, village roads and railway maintenance roads. The construction shortcuts shall be set based upon the situation of the local machine farming roads, so as to make use of the original machinery farming roads and existing roads to the largest extent possible (the original roads used reach 148.5km) and reduce impact to the agricultural operation environment by building temporary roads. -The affected exclusive facilities of the project consist mainly of power line, communication optical fiber, etc. It is designed that the alleviation and repair measures will be applied in respect of project design. Please refer to Table 6 for statistics of the degree of the influence.

4.4 Businesses (and employees) affected by temporary or permanent displacement The construction of the project produces influence to fifty-five institutional units and enterprises (inclusive of eight schools) and the relocation areas amount to 8,5373m2. Please refer to Table 7 for statistics of the degree of the influence. Table 6 Statistics of major exclusive facilities and production and living facilities of Shi-Zheng Special Passenger Line Movelalternation Movelalternation Irrigation Motor-pumped Alteredlmoved Tomb Segment of communication of power line channels well roads (m) (unit) line (Krn) (Km) (Km) (unit) Shijiazhuang 13420 93.1 12 1 8.2 46 City 135 Hebei Xingtai City 8546 Province 85.3 79.5 6.9 35 86 Handan 11384 87.4 93.3 9 City 39 99 Subtotal of Hebei 33350 265.8 293.8 24.1 Province 120 320 Any ang 6510 106 65.1 4.8 City 29 8 1 Henan Hebi City 608 1 Province 89.8 3 5.2 3.3 2 5 5 1 Xinxiang 9509 130.5 76.5 7.1 City 31 78 Subtotal of Henan 22100 326.3 176.8 15.2 Province 85 2 10 Total 55450 592.1 470.6 39.3 205 530

Continued Table 7 Statistics of institutional units and enterprises that are influenced by construction of Shi-Zheng Special

Affected institution Continued Table 7 Statistics of institutional units and enterprises that are influenced by construction of Shi-Zheng Special Continued Table 7 Statistics of institutional units and enterprises that are influenced by construction of Shi-Zheng Special Passenger Line Quantity ofQuantiq of Including: affected Relocation Framework Brick- Brick-wood Affected institution being Building people area (M2) structure concrete Other affected structure Citylprefecture Countyldistrict Township (person) (M2) (M2) (unit) (M2) structure (M~) (M2) Total: 6 869 283 13380 11040 2340 Chengguan No.10 Primary and Xinxiang City Weihui City Middle School 358 1860 1860 Villager's Su"Xingc~ Weihui City committee of 12 8 750 75 0 Township Zhangcun Village Langgongmiao Langgongmiao 7 2 5 Townshi Flour Plant 720 720 Langgongmiao

Data source: April-August 2006, site survey. 5. Impact on Socio-Cultural Environment 5.1 Nationalities The line connects Hebei Province and Henan Province and is located at the central plains, the birthplace of the ancient culture of China. Through consultation of chorography and relevant documents of each city and county, there isn't natural village and township of minority along the railway line. Through verification of the site investigation made by TSDI through December 2005 through March 2006 for purpose of development of the feasibility study to the socio-economic survey made by TSDI from April through August 2006 as well as consultation with the local civil adminstration departments in this regard, it is acknowledged that there isn't minority resident along the railway line. 5.2 Cultural Relics The line links Hebei Province and Henan Province and passes by the birthplace of the ancient culture of China. There are abundant tourism resources along the railway line. There isn't other rare cultural relic within the impact scope of the project currently on the basis of consultation with the local competent authority of cultural relics as well as the primary survey and the collected materials. The construction unit shall communicate with the cultural relics departments of Hebei Province and Henan Province before the construction starts and keep close contact with them. The construction unit shall do a good job of cultural relics protection in line with the requirements of the competent authorities. In addition, the awareness to protection cultural relics and cultural relics census shall be intensified in the course of the construction, with a view to avoid damage to the historic and cultural relics. The construction shall be halted without any delay upon discovery of the cultural relics. The cultural relics site shall be well protected. The competent authority of cultural relics and the concerned departments shall be advised of it immediately. It is up to them to fix the professional protection measures and decide the following construction.

C. Policy Objectives, Principles and Definitions 6. Laws, Refulations and Documents Below are some laws, regulations, and documents applicable to this project: Land Administration Law of the People's Republic of China revised and effective in October 2004; Regulatory Rules for Management of Planning and Construction of Villages and Towns implemented in November 1999 (#I16 Order of the State Council of the People's Republic of China); Resolution of the State Council on Deepening Reform and Reinforcing Land Administration effective in October 2004 (Guofa Document #[2004]28); Notice of the Ministry of Labor and Social Security on Directions of Employment Training and Social Security of the Farmers Deprived of Their Lands Forwarded by the General Office of the State Council dated April 2006 (Guofa Document #[2006]29); Notice of the State Council on the Issues Concerning Reinforcement of Land Control effective in August 2006; Notice of the Ministry of Land Resources on Printing and Issuance of the Official Document on Reinforcement of Residential Land Administration in the Rural Areas dated November 2004 (Guotuzi Document # ( 2004 ) 234); Notice of the Ministry of Land Resources on Printing and Issuance of the Official Document on Completing the System for Compensation and Resettlement for Land Expropriation dated November 2004 (Guotuzi Document # (2004) 238); Official Document of Further IntensifLing Protection of Basic Farmland issued by the Ministry of Land Resources, the Ministry of Agriculture, the State Development and Reform Commission, the Ministry of Finance, the Ministry of Constructions, the Ministry of Water Resources, and the State Administration of Forest Industry in September 2005 (Guotuzi Document # ( 2005 ) 196); Hebei Province Land Administration Rules revised in May 2005 Notice of the People's Government of Hebei Province on Reinforcement and Improvement of Land Expropriation and Establishment of the System for the Basic Living Security of the Farmers Deprived of Their Lands effective in June 2004 (Jizheng Document # [2004]3 7) Notice of the People's Government of Hebei Province on Printing and Issuance of the Official Document of Deepening Reform and Reinforcing Land Administration effective in December 2004 (Jizheng Document # [2004] 15 1); Implementary Rules of Hebei Province for Regulations on Relocation of Urban Houses effective in April 1992 (Order #70 of the People's Government of Hebei Province); Implementary Rules of Hebei Province for the Land Administration Law revised in June 2005 (see Attachment 4); Implementary Rules of Hebei Province for Regulations on Relocation of Urban Houses effective in September 2002; Notice of the General Office of the People's Government of Shijiazhuang City on Printing and Issuance of the Criteria for Compensation for Young Crops and Accessories of the Collective Lands in the Urban Areas effective in June 2003 (Shizhengban Document #[2003]74); Notice Hebi City of Adjustment of the Criteria for Compensation for Accessories of the Lands Expropriated for National Construction effective in February 2006 (Hezheng Document #[2006]3); Involuntary Resettlement - World Bank OP4.12 Directory

7. Policy Objectives Key policy objectives include: a) Avoidance or minimization of land acquisition and other adverse impacts b) Those adversely affected ("displaced persons," as defined below) are compensated at replacement cost for lost assets, and otherwise receive any assistance necessary to provide them with sufficient opportunity to improve, or at least restore, incomes and living standards

8. Policy Principles Key policy principles include: (a) When possible, resettlement plans should be conceived as development opportunities, so that those affected may benefit from project activities. (b) Lack of legal rights does not bar displaced persons in peaceful possession from compensation or alternative forms of assistance. (c) Compensation rates refer to amounts to be paid in full to the individual or collective owner of the lost asset, without deduction for any purpose. In China, individual owners receive compensation for affected structures and other fixed assets, and villages receive compensation for acquired land in rural areas. (d) When cultivated land is acquired, it often is preferable to arrange for land-for-land replacement through collective land redistribution. In some cases, as when only small proportions of income are earned through agriculture, alternative measures such as payment of cash or provision of employment are acceptable if preferred by the persons losing agricultural land. (e) Replacement houseplots, sites for relocating businesses, or redistributed agricultural land should be of equivalent use value to the land that was lost. (f) Transition periods should be minimized. Compensation should be paid prior to the time of impact, so that new houses can be constructed, fixed assets can be removed or replaced, and other necessary measures can be undertaken before displacement begins. (g) Displaced persons are consulted during the planning process, so their preferences regarding resettlement arrangements are considered; resettlement plans are disclosed in a publicly accessible manner. (h) The previous level of community infrastructure and services and access to resources will be maintained or improved after resettlement. (i) The borrower is responsible for meeting costs associated with land acquisition and resettlement, including contingencies. (j) Resettlement plans include adequate institutional arrangements to ensure effective implementation of resettlement measures. (k) Resettlement plans include arrangements for internal and external monitoring of resettlement implementation. (1) Resettlement plans include procedures by which displaced persons can pursue grievances.

Definition of "Affected Population" "Displaced persons" refers to all the people who, on account of the activities listed above, would have their (1) standard of living adversely affected ; or (2)right, title, interest in any house, land (including premises, agricultural and grazing land) or any other fixed or movable asset acquired or possessed temporarily or permanently; (3) access to productive assets adversely affected, temporarily or permanently; or (4)business, occupation, work or place of residence or habitat adversely affected; and "displaced person" means any of the displaced persons.

10. Definition of "Replacement Cost " "Replacement cost" is defined as follows: For agricultural land, it is the pre-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost of any registration and transfer taxes. For land in urban areas, it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost of any labor and contractors' fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, nor is the value of benefits to be derived fiom the project deducted from the valuation of an affected asset. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures so as to meet the replacement cost standard. Such additional assistance is distinct from resettlement measures to be provided under other clauses in OP 4.12, para. 6.

D. Compensation 11. Compensation On the basis of the Rules of Hebei Province for Land Administration revised in May 2005 and the Implementary Measures of Henan Province for the Land Administration Law revised in June 2005, the compensation rates this project adopts are introduced hereinafter. Refer to Table 11, 12for different compensation rates. 11.1 Land compensation fee The land compensation fee and resettlement subsidy of permanently expropriated land shall be several times of AAOV of the expropriated farmland. Hebei Province: Land compensation fee: Farmland: 6-10 times Agricultural lands and construction lands other than farmland: 5-8 times Unused land: 3-5 times Resettlement subsidy: Farmland: 4-6 times Agricultural lands and construction lands other than farmland: 4-6 times Unused land: no resettlement subsidy. According to the relevant regulations set forth in the Rules of Hebei Province for Land Administration, resettlement subsidy shall be increased as approved by the provincial government when the original standard of living of the farmers can't be maintained after payment of land compensation fee and resettlement subsidy. However, the total sum of land administration fee and resettlement subsidy shall not exceed the following limit: Farmland: no more than 30 times of the AAOV of the expropriated farmland; Agricultural lands and construction lands other than farmland: no more than 25 times of the AAOV of the town where the expropriated land is located. Henan Province: Land compensation fee: Farmland: 6 times for the suburbs of a municipality under the provincial government, 5 times for other suburbs, mining areas and towns under a county, and 4 times for other areas. Other lands: 3 times. Resettlement subsidy: The criteria for resettlement subsidy per mu of expropriated farmland is as follows: 3 times of the annual output value for per capita farmland of one mu or more, 4 times of the annual output value for per capita farmland of over 0.7mu but below one mu, 5 times of the annual output value for per capita farmland of over 0.5mu but below 0.7mu, 7 times of the annual output value for per capita farmland of over 0.3mu but below 0.5mu, and 10 times of the annual output value for per capita farmland of below 0.3mu. For expropriation of other lands, the resettlement subsidy shall be paid by 2-6 times of the annual output value of the expropriated land. In the event that the original standard of living of the farmers can't be maintained after payment of land compensation fee and resettlement subsidy, the municipal government shall submit a resettlement plan and a proposal for increase of resettlement subsidy to the provincial government for approval, so as to increase the resettlement subsidy reasonably. However, the total sum of land administration fee and resettlement subsidy shall not exceed 20 times of the AAOV of the expropriated land. Woodland Compensation shall be made according to the value of the wood cumulation in the land. For expropriation of woodland of young woods, compensation shall be made by 50% of the value of the adult woods. For expropriation of shrub woodland and sparse woodland, compensation shall be made by 3 times of the annual output value per mu to the affected forest administration, which shall be responsible for recovery of the equal amount of woodland. -Residential land, house 1 building and their accessories The compensation for loss of residential land, house 1 building and their accessories shall be made in full on the basis of replacement cost, without deduction of the removal cost and the remaining value of the building materials. Compensation for residential land shall be directly paid to the affected village, and on the basis of negotiation between the village commission and the affected villagers, the commission shall provide the affected farmer families with free residential land. If this approach doesn't work, the township government shall take the responsibility. For houses, other buildings, apartments, and the relevant accessories, the compensation shall be made directly to the affected people according to the replacement cost. Land transfer cost and other related costs shall be paid by the project owner if not exempted. For tenants of the affected houses, lease contracts of the same conditions shall be provided to them. They shall be informed two months in advance before they move out of the houses. 11.3 Young crop compensation Compensation for young crops of the expropriated lands in Hebei Province shall be calculated with the output value of season crops. Compensation for young crops of the expropriated lands in Henan Province shall be made to the following criteria: 60-80% of season output value of the planted young crops, and 40-60% of season output value of the non-planted young crops. 11.4 Moving and Transition Subsidy In addition to house and land compensations, relocation subsidy shall also be paid. This includes resettlement / relocation cost and house rent fee during transition period inclusive of contingency loss and expenses relating to house relocation and new house construction (relocation transit subsidy), all family articles and building materials for new house construction and old house removal, and cost of move to the new house (transport subsidy). All said subsidies shall be paid to the affected farmer families at one go. In normal cases, the affected people build their houses on their own, and they may stay in their relatives' houses during construction of their new houses. In the event that they don't have free accommodation, the affected people will get rent subsidy for six months for payment of house rate to the criteria of RMB60 per month per person. In the case that an affected person doesn't resettle (in six months), the project execution organization shall double the transit subsidy for the affected person losing hidher house (RMB120 per month per person). In addtion, RMBYSOO for each household expended on three accesses and site leveling at centralized resettlement locations is accounted in estimation budget, and used at centralized resettlement locations under central control by local governments. 11.5 Compensation for loss of business / employment opportunities In the event that commerce or business along the railway to be constructed is affected, transit subsidy for move from the old place to the new place shall also be paid in addition to the house compensation. This subsidy shall be calculated on the basis of the after-tax profit for the six months before move, which is issued by the taxation bureau. 11.6 Relocation of public buildings Compensation shall be made for all affected public buildings to the owner in cash, or they shall all be re-constructed. For school buildings, new school buildings shall be established before removal of the old ones. In the event that these public buildings are to be expanded by this chance, the project organization shall require the local owner to provide the supporting hnds (thus ensuring 100% of hnds needed for building construction). 11.7 Land adjustment Generally speaking, the land-deprived farm families will get "land for land" through land adjustment inside the villagers' commission. In the event that land adjustment can't assure that the farmer families obtain sufficient farmland, cash payment shall be made for compensation while land adjustment is made. This payment may be made to the farmer families that choose this way of compensation, and 1 or those farmer families that don't get sufficient land after land adjustment. The compensation rate shall be determined according to the actual situations and after negotiations between county governments, affected villages and affected people. 11.8 Training courses The affected people will take certain training courses in the place where the county or town is located for a period of two weeks. All participants will have subsidies for travel, food and accommodation. Also, some hnd will be provided for some special training courses in the project area. These training courses may be provided after land expropriation or even after relocation. These trainings courses include those on building workers, as well as agricultural techniques or non-agricultural skills. Basically, the farmers will have fair compensation for their lost land so as to recover their incomes. However, the post- resettlement training courses may assure that some farmer families won't get into the trouble of poverty after lost of their lands. 11.9 Compensation qualifications and closing date For the lands, buildings 1 houses, crops, and sources of income that the affected populations and organizations (privately or publicly owned) lose, compensation and rehabilitation shall be made by the types and quantities of these losses. These losses include the data of impact acquired during the detailed measurement and survey by TSDI and Shi-Zheng Railway construction agency, or the goods temporarily affected during construction. Generally, the local government will issue an order prohibiting construction of any new building along the railway. However, the routing of the railway has not been determined due to some reasons. Therefore, for those cases of uncertainties / disputes, the date on which the detailed measurement and survey is completed can be taken as the closing date of compensation qualification. After the closing date, the farmlands, buildings, and other goods of the affected people in the project area won't be listed in the range of compensation or subsidy. Buildings, crops or trees added only for additional compensation won't be compensated for. E. Rehabilitation Measures 12.1 House Demolition and Restoration Plan 12.1.1 New Site Planning, Development and Selection No village needs to move as a whole. The farmer families will reconstruct their houses right in their own villages, and it is not necessary to develop new sites. Most farmer families that need relocation are independent or dispersed along the line. However, over ten farmer families need to move in some places (there is no such a case that over one hundred farmer families have to move). Massive relocation is usually due to construction of railway stations, and is not necessary in this project. All buildings planned to relocate will be "relocated in the field" according to the regulations of the World Bank. In most cases, the villages of the affected people will provide the new sites for construction of their houses. Due to routing or station construction, some villages will arrange relocation with their existing lands, and the affected people will choose "backward

relocation" on their own. There is no such a case that " the Ministry of Railways selects the relocation site". The relocation plan is based on the following three aspects: (1)The capability of the village-level communities of conducting land adjustment. The project is a linear one. Compared with other projects of the same scale, it occupies less land. If the all villagers of the affected villages share the loss of lands, the per capita loss of farmland may be very small. Therefore, it would be no problem for the local communities to adjust the lands. (2)The capability of the village-level communities of providing new residential lands. Out of the 71 villages, 3029 affected farmer families will move. On average, 43 families need new residential lands in each village. According to the overall land planning of each village, they reserve residential lands (non-farming lands). The residences are distributed, and it is no problem to select the residential lands. (3)Selection of new residential lands by the affected people. Although most affected people can easily get suitable residential lands in the vicinity of their farmlands, their preference in selection of residential lands shall be extremely respected. For instance, the relocation plan for distributed or centralized residence shall be flexible. The centralized residential areas are usually designed according to the development status of the communities or cities, and more business opportunities may appear to attract more affected farmer families. In whichever case, the preference of the affected people in selection of residential lands shall be discussed at the village-level meetings. Ways of house rehabilitation The measures for expropriation and resettlement for destroyed rural and urban residences are as follows: The farmer families are resettled separately. They will construct houses for themselves. The house compensation allowances include labor and material costs. The farmer families that choose to construct houses on their own may use the allowances to increase the area or improve the fitments of the new houses. Alternatively, they may construct a house similar to their original one, and use the allowances in some other way. The sites of new houses will be determined through discussions with the villagers and villages. Selection of sites for new houses may carried out through discussions with the villagers and villages, and the villages may provide the farmer families with sites of new houses free of charge. Centralized resettlement is preferred in construction of new villages. Streets and stores will be constructed according to the small town development plan. There are several choices. No. 1, the local governments take care of construction of streets and supporting infrastructure facilities, while the affected people construct their houses according to the uniform plan. No. 2, the equivalent houses will be returned to the affected people. No. 3, cash compensation may be provided to the affected people instead of new house construction if they like. It shall be up to the affected people which approach shall be adopted. The principle for building relocation is construction the first and removal the second. In the case of removal the first and construction the second, rent subsidy shall be paid for the transit period. In either case, transport fee shall be paid. The expropriation and resettlement offices at the county and city level shall be responsible for review of the expropriation and resettlement plan, distribution of the expropriation and resettlement funds, as well as preparation, management and control of the expropriation and resettlement process. The expropriation and resettlement offices shall also work with the Ministry of Railways. The township expropriation and resettlement offices shall as implementation bodies of expropriation and resettlement, and will consult with the villagers and representatives from the farmer commissions, so as to establish resettlement action plans suitable for each village. The resettlement action plan of each village will be approved by the country or municipal expropriation and resettlement office, and implemented by the township expropriation and resettlement office and villagers commission. During relocation and relocation, the following principles shall be followed: The new sites for construction of houses must be provided to the farmer families for free, so that they don't have to pay for lands for construction of houses. The provided land area shall be equal to that of the old house. The new sites of houses will be determined between the villagers commissions and the affected farmer families through negotiations. The affected farmer families are prone to construct their new houses where convenient transport is available, namely, in the vicinity of highway or county-level roads. The villages will fulfill their needs to the max extent, and in the range of new sites available for construction of their new houses, the farmer families may select their specific sites. It takes four or five months to build a farmer house. The affected farmer families hope to build their houses on their own. They may take building materials from the old houses. However, using the building materials taken from the old houses doesn't necessarily mean the cost of these building materials shall be deducted from the house compensation. The affected people will get relocation compensation. The county-level expropriation and resettlement offices (CRO) will provide cash directly to the affected farmer families. The principle stipulates that new houses shall be built before old houses are removed. In the case of removal the first and construction the second, rent subsidy shall be paid for the transit period, so that they can rent houses. During the transit period, the farmer families may stay in their relatives' houses. In this case, the transit subsidy shall also be paid to them. Even though the farmer families build their new houses in the same villages, transport fee shall still be paid to them as stipulated. The transport fee shall be separately listed, or combined with other item of compensation. When the farmer families re-build their new houses, they shall pay the additional expenses if they want to increase the area or improve the quality of their houses. On the basis of their financial strength, they may make their own decision whether or not to increase the area or improve the quality of their houses. The villager commissions, the township governments, and the expropriation and resettlement offices will be responsible for house reconstruction and relocation of the affected farmer families. The governments at all levels will jointly resolve the issues that take place. Those farmer families with women playing the major role shall enjoy equal treatment in house reconstruction, opportunities and compensations. Any behavior of reducing their house areas or depriving them of their rights will be illegal. Villagers commissions, township governments, and expropriation and resettlement offices will pay special attention to the poverty-stricken farmer families, the handicapped, and the protected families, and provide assistance to them. If they can't build their houses on their own, the governments at all levels will help them with their relocation and resettlement. There are two measures: helping them build their houses, or buying houses of the same area and quality for them in the same villages. There is one possibility for relocation of urban residents, i.e., they bought commodity houses. In this case, they will get compensation of replacement cost. That is, they will be compensated at the market price of local commodity houses, so that they can re-buy commodity houses. In addition, transport subsidy shall be paid to them. The second possibility for urban residents is that they bought lands on which they built their houses on their own. In this case, they will get new sites of the same area and quality as well as compensation for house construction and transport fee. Chinese farmers shall apply for building houses in the lands that belong to the villages. The application shall be approved by the villagers meeting, reviewed by the villagers commissions and township governments, and eventually submitted to the county or city government for approval. This type of lands for house construction is free, and the farmers have to pay few proceeding fees. This type of land allocation is sufficient for the farmers. The farmer families may use over 100 m2 lands to build two-four floor brick houses or concrete houses. At present, most farmers along Shi-Zheng Special Passenger Line adopt new designs to build their houses. The new designs occupy less land area than the old designs (bungalows), while the area of new houses is equal to or bigger than that of the old houses. The fowls and livestocks of the relocation families won't be adversely affected by the relocation. Implement new village construction through relocation In a village with over 30 families of relocation, rural reconstruction shall be accelerated through the relocation, and new village construction shall be implemented. On the basis of village and town planning, construction of rural infrastructure facilities shall be accelerated. Firstly, a scientific and rational village and town planning, construction and management system shall be established, and the planning and construction of villages and towns shall be standardized. On the principles of "adjusting measures to the local conditions, giving prominence to the local features, being unprecedented to some extent, and making accomplishment at one go" and in line with the requirements of "removing and combining small villages, removing hollow villages, reducing natural villages, and constructing central villages", special forces shall be organized to plan the layout of the villages in the area, and prepare the outlines of the villages. Secondly, on the principle of "planning the first and construction the second, and no planning no approval for construction", the planning shall be strictly abided by. The approved planning shall be strictly followed to guide the villagers to do a good job in construction of houses, infrastructure facilities and public utilities, encourage the villagers to adopt a variety of construction modes, such as dispersed families moving into the villages, reconstruction of the original villages, protective reconstruction of historic villages, naturally ecological villages, and new farmer villages. Thirdly, construction of villager houses shall stick to such principles as compliance with planning, limiting to their abilities, respecting the farmers' wishes, and being stylish. Compulsory requirements shall not be applied, and it is not necessary to build all villages with one look. Total removal and complete reconstruction, which is not practical, shall not be adopted. Fourthly, village appearance shall be improved, and the environment of township bazaars shall be controlled. Great efforts shall be made to carry out the clean village program, conduct such activities as "removing waste, removing slurry, removing road barriers, improving roads, improving water pipeline, improving kitchens, improving toilets, and improving pens", beautify the environment, lead the farmers to resolve the issue that residences are mixed with fowl and livestock pens, and realize the people's expectations of "flat roads, clean water, clean toilets, and clean houses". Fifthly, great efforts shall be made to complete the infrastructure facilities of villages and towns as well as their service functions. The clear village program shall be accelerated, and focus shall be on hardening of village roads. Regenerative clean energy sources as marsh gas and straw gasification shall be greatly developed in the villages, and efforts shall also be made to push the farmer families to improve their water pipeline, toilets, pens, kitchens, and baths. Promotion of three-connection marsh gas toilets: three- connection marsh gas toilets shall be connected to toilets, livestock pens, and marsh gas tanks. Excrement and urine directly enter the tanks through straight pipes without being exposed. The liquid and debris shall not be taken out of the outlet unless full fermentation. The raw materials are rationally configured, and include excrement and urine, pen straw, ground straw, vegetation, hydrophytic plants, weeds, etc. The marsh liquid and debris may be used as fertilizers. Promotion of ecological toilets with excrement and urine separately collected: this kind of toilet comprises of urine storage tank, excrement storage tank, and heat absorption plate. Adding ash after relieving is the key to management of this kind of toilet. Sufficient ash keeps the excrement dry. Before the first use of this kind of toilet, 5-10cm ash shall be added in advance. After use each time, certain amount of ash shall be added, to be a more exact, three times of excrement. Excrement is kept in the tank for about 0.5-1 year. Urine shall not enter the excrement storage tank. The urine storage tank shall be away from sunlight, and closed. Urine shall be diluted with five times of water, and directly used as fertilizer. 12.1.4 Ways of compensation and transit Since most building materials of the new houses are from the old houses, new houses can't be built unless the old houses are removed. According to the survey results, during the 3-5 months of transit period, the affected people have two ways to get accommodation: (1) staying in relative's houses; and (2) setting up tents on the new sites. Since most building materials of the new houses are from the old houses, transit compensation shall be paid to the affected farmer families in all counties and cities. However, if the affected farmer families don't agree with the said measure due to any reason, the project implementation organization shall agree to provide them with temporary houses for six months or longer. In this case, it is not necessary to pay transit compensation to them. The compensation will be paid to the farmer families before the old houses are removed. The supporting facilities of all houses, including rails, toilets, pens, yards, water banks, wells, cables, fruit trees, other trees, and plants, shall be all compensated for. This is to protect the interests of the relocation farmers. Special attention shall be paid to the poverty-stricken families and vulnerable groups, like families with handicapped members, with women mainly taking care of everything, and old people. In the event that they fall across any problem during transit, resettlement or reconstruction of their houses, the villagers commissions and the town governments shall provide them with assistance. Recommendations, free provision of building materials, or cash compensation may be provided to them. These measures aim to successful expropriation and resettlement of the farmer families, and better residential conditions than before. Some farmer families may accept additional compensation, which is not over the criteria for replacement cost. Most new brick houses and concrete houses are built in the suburbs of cities or towns. The final result of compensation is that all relocation families successfully accept and conduct relocation. 12.2 Production rehabilitation If a farmer family loses a small piece of land, the village will re- allocate their lands, and the compensation for the lost land will be used to improve the productivity of the remaining land. For instance, the compensation may be used to improve the irrigation facilities. That is, through investment, the village can achieve equal or higher productivity with the fewer lands. If industrial or commercial buildings, which belong to profit- making enterprises, are removed, the compensation may be used to reconstruct their buildings, so that they can continue their operations at the same or better level. If a farmer family loses most or all land, and doesn't have new land as compensation, the compensation fee the farmer family gets may be used in small business, training or education, move to a place with land available or opportunity of employment. If suitable audit and management system is available and the requirements of Chinese laws and the World Bank are fulfilled, the compensation will be sufficient to address the needs of the affected people, and their incomes and living will be assured. The auditing and reporting procedures incorporated in the resettlement action plan can assure their incomes and living. 12.3 Resettlement of enterprises and schools The compensation and its payment schedule shall be corresponding to relocation and reconstruction of non- residential facilities. The policy for relocation of non-residential facilities is for completion of relocation before confirmation of lands for railway construction. This is especially important to the affected schools. No big plant or enterprise has to relocate. Some small township enterprise, like some repair stores, small brick plants, small workshops, and small metal material processing shops, may be affected. Some belong to the local governments, some belong to villages, and some are privately owned. The affected commercial buildings, plants and enterprises for profit making purpose will be reconstructed. To them, transport fee and compensation for loss of income during relocation shall be paid, and the market price of the relocation sites shall be considered. The towns or village commissions shall be responsible for reconstruction of the affected schools after receiving the compensation. If a school needs expansion, the town government or village commission will take care of the additional cost. The compensation for relocation of these enterprises includes three parts: Compensation for factory building and other buildings; Cost of equipment transport; Compensation for loss due to shutdown. These fees are paid to the owners of the enterprises. The criteria for (1) compensation are similar to those of compensation for farmer houses. For (2) and (3) compensation, the criteria will be determined between the railway owner and the affected parties through negotiations. The towns and villages will help these enterprises reconstruct their buildings and recover their production, and guide and help them to select new sites. The township or village-level enterprises shall have new sites still in the lands of the towns and villages. The privately owned enterprises usually rent the lands from the village collectives. Obtaining compensation, they can still rent lands from the rural collectives to re-open their plants or other businesses. The details of preliminary estimate on compensation of enterprises and institutions affected by construction of this project sees table 8. Table8 Statistics of moving compensation of institutional units and enterprises that are influenced by construction of Shi-Zheng Special Passenger Line Quantity o f Moving Affected institution affected compensation area (M') people (yuan 1 City/prefecture Countyldistrict Township (person) Shijiazhuang Qiaoxi District Qiaoxi Breeding yard of District Gongjia Village 2 5 3290 30

Xinhua Industrial Oven Co., Ltd. 275 4926 150

Sijiazhuang Luquan City Luquan City Maosheng Titanium 260 3002 150 TOWnsh'p Industry Co., Ltd. Xiliangzheng Breeding Yard 22 1530 20 Luancheng Douyu Board Plant County Township 20 725 20 Douyu Breeding Yard 15 2450 50 Yuanshi Macun County Township No.2 Cotton and Oil 3 5 2130 120 Plant Shijiazhuang Boyan Diamond Products Co., Ltd. Processing 40 585 60 Plant

Dangpuzhuang Breeding Base 6 1000 2 Chengguan Nanj ian Primary Township and Middle School 180 730 50 Hengda Middle School 650 10980 230 Shijiazhuang City Funong Fertilizer 120 1500 80 Co., Ltd. Lirenzhuang Nusery 8 72 3 G107 Road maintenance area 2 5 202 2 Gao~iCounty hi^ Weaving plant 122 1881 100 Zinc oxide workshop 55 677 50 Hennery 7 766 1 Lihan Crude Oven Tube Workshop of 25 350 2 Township Xitaying Village Weaving plant 66 1469 50 19 Total: -1956 38265 1170 Xingtai City LOL~~~OY incun Y incun Village Coun Township Hospital 30 Brickyard of Yincun 15 200 30 Village Jindian Hennery of Daliu 25 1800 2 Township Village Wood processing Xingtai County plant of Wangma 40 1200 100 Township Village Wood processing 400 80 plant Daxian Village 25 Wangkuai Nanshi Coal Plant 8 50 Township 700 Shahe City S::";,","rgQingjie School 80 400 50 - Total: 7 219 5420 342 Yongnian County Y ongnian Handan City Yonglv Fruit and 20 1500 50 County Township egetable Company iyisheng's cigarette 3 63 1 C‘""Y Township if^^^ Village Shun'an decoration shop of Qifang 4 66 1 Village

Yuehai Traffic 110 2400 150 hdustry Co., Ltd.

3ebei Shennong Vew and Hi-tech 65 1800 150 Co., Ltd. Jianzhuang Baotaisi Lantian Township Kindergarten 115 690 2 Baotaisi Lu's bathhouse 3 4 5 1 Nanbao Lijiakou Milk Cow 1500 30 Township Plant 33 Shangcheng Lvj iazhuang Cheng'an County Township Benzene Plant 5 60 2 Hebei Wanlong Chemical Co., Ltd. 26 900 30

Nandongfang Zhangxiutun Linzhang County 15 384 20 Township H~~gery Hongyun Vinegar Ducun Plant (Xiying 9 600 1 Township Village) Total: 12 408 10008 438 Total in Hebei 2583 53693 1950

Anyang City Yuniu Baibi Anyang City Wenfeng District Dairy Co., Ltd. 80 4800 80 Township {Dongbeiwu Village)

Dongbeiwu Village Milk Cow Plant 4 40 5 Chengguan Tangyrn County Township ~ulicunschool 200 950 5 Yangjiucun Primary School 85 400 16 Yigou Jiangcheng Breeding Township Base 50 3450 3 Yigou Township No.2 Middle School 450 3740 60 Total: 6 869 13380 169 Xinxiang City Chengguan No.10 Primary and Weihui City Township Middle School 358 1860 15 Weihui City Sunx~ngcun Villager's committee Townshlp of Zhangcun Village 12 750 2 Xinxiang LanggongmiacLanggongmiao Flour County Township Plant 7 720 1 Langgongmiao Cotton Processing 35 1430 2 Plant - Cuizhuang Primary School of Langgongmiao 85 540 5.5 Township Xinxiang City Yuanyang County Yonghua Oil Pant & 30 400 3 Township Chemical Plant Shizhai Tax Bureau 5 400 3 Xingya Plunge Bath 15 9000 0.5 Hospital of Shizhai Township 35 600 4 Shizhai Cotton and Oil Plant 2600 5 Total: 11 682 18300 41 Total in Henan 1551 31680 210 Total amount throughout the line: 55 4134 85373 2160 12.4 Reconstruction of infrastructure 1 public facilities The affected infrastructure facilities include water supply (including drinking water and irrigation water) facilities, power cables, telecom cables, and roads. Most infrastructure facilities are public one. Some are state owned, some by the local governments, and some by the rural collectives (like irrigation channels and township roads). There are mainly three measures for reconstruction of the infrastructure facilities affected by Shi-Zheng Special Passenger Line: Some infrastructure facilities will be directly reconstructed by the construction agency during construction of the railway, for instance, the irrigation channels and village roads. The power cables and telecom cables will be reconstructed by some special organizations on the account of the Ministry of Railways. The public infrastructure facilities, like water towners and power transmission lines, will be reconstructed through compensation by the constructor to the relevant organization. The local farmers pay special attention to the adverse impact of Shi-Zheng Special Passenger Line to the irrigation facilities. There are two ways out: reconstruction of the irrigation facilities by the railway construction agency, or reconstruction of them by the affected people with the compensation from the railway organization. The irrigation facilities shall be reconstructed on the following principles: Improving all functions of the irrigation facilities; All on the account of the relevant railway organization; Quick reconstruction, for the purpose that the agricultural production in the area won't be adversely affected. Which mode shall be adopted is determined between the affected party and the railway party through negotiations. 12.5 Income rehabilitation measures 12.5.1 General rules The objective of income restoration is to help all people that are affected by the project and lost their livelihood (inclusive of land) improve, or at least maintain, their income and living level to that before the "project" starts. Generally speaking, there are five kinds of resettlement modes for the rural population that are affected by land expropriation. Their meanings and implementation premises are as follows: Agricultural resettlement: with the resolution reached on the villager's meeting or consent of more than 213 representatives of villagers as well as approval of the agricultural component authority of the people's government at the township level or the people's government at the county level, land reallocation is carried out within the collective economic organization of villagers. If the land reallocation lags behind, the farmer families whose lands have been expropriated shall be compensated with agricultural production value loss compensation. Resettlement by enterprises: the resettlement subsidy for land expropriation is to be managed and used by the rural collective economic organization collectively, which will be used to developlrun and establish the village enterprises. The rural people to be resettled will be employed to work for these village enterprises. The competent institutional units (enterprises) are encouraged to employ the rural people to be resettled. If the rural people to be resettled agree to work for certain institution unit (enterprise), the resettlement subsidy may be appropriated to the institutional unit (enterprise) for it to resettle the rural people to be resettled. Resettlement by cash: with the approval of the land administration department of the people's government at township level and the land administration department of the people's government at county (district) level, the resettlement subsidy will be paid to the individual to be resettled directly in line with the plan worked out by the villager's collective economic organization. These individuals will search for occupation independently and invest the resettlement subsidy to run stores, maintenance shop and handcraft workshop and grow into the craftsmen. Payment insurance: with the approval of the people to be resettled, the resettlement subsidy will be used to buy insurance for them. This kind of resettlement is adopted by families with the aged members only. Resettlement by land reclamation: the villages with the land reserve resources may use the land compensation fee to reclaim the wasteland and hilly country by the surplus rural laborers under the premise that the ecological environment will not be damaged. The construction of Shi-Zheng Special Passenger Line will make approximately 8,600 persons lose all their lands and consequently some income. According to the socio- economic investigation, more than 80% farmer families have other income sources besides agricultural income and the income from foodstuff and economic crops accounts for only 25.5% of their total income. The proportion is even smaller in respect of net income. So, land expropriation will not produce serious influence to livelihood of the people living in the project areas. It is specified for this project that the compensation will be made to the landowners directly. The compensation for crops and trees (by market price) will be paid to the affected farmer families if they are damaged. The optional methods for the landowners to use the compensation are specified under the current laws and regulations. The compensation shall be favourable to the farmer families no matter it is paid to the farmer families, directly or indirectly. The following issues can be fixed through opening of the meeting of the affected people representatives carry out land reallocation and make farmer families losing land gain land again and use the compensation for public interest construction of the community; or pay compensation to the affected people directly; The combination of these two is applicable as well, which shall be submitted to the people's government at the township level for approval. STIPULATION OF INCOME RESTORATION STRATEGIES Any income restoration strategies shall give full consideration of the preference of the affected people and the implementation methods. The income restoration strategies depend also on the distribution mode of the compensation between the community and the individual. Under such background, the socio-economic investigation (inclusive of farmer families and village head) shows option between land reallocation and cash compensation. To provide sufficient evidence for stipulation of the income restoration strategies, the major results of the site survey and opinion consultation conducted in April 2006 are as follows: More than 70% villages prefer to land reallocation, so as to make the affected people continue agricultural production; Almost all people don't agree to use the compensation by the village collectively - which is to be further acknowledged on the villager's meeting. With the above-mentioned (survey) result as the foundation, the income restoration strategy will be flexible, democratic, village- specific and self-managed. The preference learned from the held meeting will be voted and supplemented by the affected villages through the appropriate official meeting. The income restoration strategy will make the majority of the affected people continue the agricultural production, even they have lost their arable land, in whole or in part. The strategies consist mainly of the following parts: Land reallocation (to be implemented with the help of the local land administration bureau) The major objective of the community to invest by the compensation is to make all people involved by the land reallocation draw benefits, affecting individual from investing by the compensation. Training Employment opportunities provided by the project-related industries. 12.5.3 Income recovery: land adjustment Generally speaking, the land-deprived farm families will get "land for land" through land adjustment inside the villagers' commission. In the event that land adjustment can't assure that the farmer families obtain sufficient farmland, cash payment shall be made for compensation while land adjustment is made. This payment may be made to the farmer families that choose this way of compensation, and 1 or those farmer families that don't get sufficient land after land adjustment. The compensation rate shall be determined according to the actual situations and after negotiations between county governments, affected villages and affected people. According to the discussion and the results of the site survey, under the majority of situations, the majority of the investigated villages maintain the land reserves. Besides, there are a great amount of land resources along the railway line. So, land reallocation within these areas is feasible. 12.5.4 Income restoration: use of compensation (I) Community-based income restoration measures The agricultural productivity of the affected people will drop within a short period of time no matter if the land is reallocated or not. The compensation made to villages is made to mainly improve the agricultural productivity, especially the following aspects: Improve the irrigation facilities and extend them to the non- irrigation areas Create new arable lands through reclamation of wastelands at the appropriate sections Develop orchard and other economic crops Improve production of stock raising Develop processing of primary products The villages are entitled to appropriate certain sum of money to social and infrastructure projects such as schools, roads and water supply network. The detailed suggestions are to be finalized by all villagers on the basis of the supplementary selection results before the compensation is distributed. (2) Use of compensation by individual A considerable part of the compensation paid to the affected people shall be used by them for income restoration. If so, no social problem will be produced. It is because that many people have strong initiative or desire to invest in the productive activities in the project areas. It is this kind of initiative reflects their capacities to use the compensation. As a matter of fact, the economic crops and service industries of the project areas develop rapidly in the recent years. The individuals accepting the socio-economic survey show the preference to investment in non-agriculture (Table 17), such as small-sized business. The individuals above forty years old show preference to development of agriculture, stock raising and fishery. They prefer to some exploitable land-expropriation resettlement compensation and some land compensation. Thus, they can improve new animal varieties or improve their farmland irrigation conditions. In addition, some farmer families choose to provide better education for their offspring by the compensation. These families are future-oriented and make plan for a better hture of the entire family. 12.5.5 In-project Employment The construction of Shi-Zheng Special Passenger Line will create the temporary work opportunities. The farmers may seize hold of these opportunities to gain additional income by cash. It is helphl to restore the livelihood. The majority of building workers shall be employed from the local villages. The affected poverty people enjoy the priority to work for construction of Shi-Zheng Special Passenger Line. The expropriation and resettlement office at the county, city and township level will execute these measures with the project construction team and/or the subcontracting project team jointly. 12.5.6 Training plan To meet the major task of the affected communities and individuals of income restoration, a series of training shall be performed. These plans with the separate estimate fimds consist of the items listed below. The responsible persons of all villages involved in land expropriation for this project as well as one representative of the affected farmer families are entitled to join one or two training courses organized by the county and they are responsible for experiment and promotion of these items to their villagers. Stock raising and breedinglfishery; Planting of economic crops; Training plan of woman's embroidering and weaving skill; Maintenance skills of motorcycle, auto, tractors and agricultural tools; Marketing of products. The training will be performed on site or within the training center of the concerned countylcity. The training fees will be paid directly to the trainer agencies such as agriculture promotion department, exclusive technology training department and NGO from the contingency. The trainees that accepting the training at the places that are far away from their own villages will be paid with allowances. A half of the trainees shall be woman. It is planned that the training will start from the beginning of 2007. It is aimed to make the affected learns and masters at least one useful technology. Please refer to Table 9 for training plan of the affected farmer families. Table 9 Training plan of the affected farmer families I I Fund I estimate Trainingthe .y UI training Major contents (RMB Remarks me day 10,000 yuan) National laws and regulations of China, policies of the World Bank, relocation and resettlement policies of the Policy project, compensation methods and standards, significance learning of the project, possible social, economic and environment im~actsof the ~roiect Control of I A Do~m~c.nt~t;xmr\fI I I expropriati Composition, responsibilities and con1:act methods of the m l\bPl bJC.IILuL1 v b V1 no-r onntvnl nf I-nA I the affected farmer 1 632 persons ( 1 1 1 on and land expropriation and relocation agellbr, uVllLIVl vl lulru 1 25 groups. - I relocation expropriation and relocation implementation, it-"--':ilur111ili1u11 -- 1 families I of25 I 0.5 I :--I + --l!--&:-- --+L-A -J?-..Ll:- A:-:--+:-... A Responsible person counties, 60 of county- IIII~IGIIIGIIL C;UIIGC;LIUII,IIIGLIIUU UI ~UUIIC;--~~LILILI~~~LIUII, appeal---- channel 1 ,+:,, I of the villages in townships 79 specific relation to the land and 3 16 I 1 training in Construction of new village, planning, development and I -. I expropriation and villages total selection of new address Restoration relocation Biogas use technology, stock raising and breeding measures technology, planting technology of economic crops and Woman's embroidering and weaving technology and skills Organize the technical Skills to maintain motorcycles, autos, tractors and training class learning agricultural tools. respectively, five (Marketing of products days each 632 12.5 79 12.6 The Vulnerable Group The vulnerable group involved in this line refers to some poor people. The majority of the villages affected by Shi-Zheng Corridor belong to North China Plain, where there is relatively abundant land resources and products. However, it is doubtless that expropriation of some lands of the farmers will lead to certain inconvenience to them, especially the farmer families with relatively low income and heavy burdens. It is a hard nut to effectively guarantee living of these people when their lands are expropriated. Approximately 213 poor farmer families are "(short of development capacity) the poverty-stricken farmer families". In other words, the family members or the major laborers of these families suffer from some yearlong injuriesldiseases (physically, mentally or socially). After consultation with some officials taking charge of the poor farmer family work for features of these families, the major reason leading to their poverty lies on the poor physical conditions of their major laborers or failure of them to plant their lands effectively. Another reason is their deficiency in skills. The civil affairs department of the concerned towns take charge of providing "five kinds of guarantees" to the said poverty-stricken families, including foodstuff, dwelling, clothes, heating resources and fbneral expenses. The training plan is helphl to the members of the vulnerable farmer families. The strong members of the vulnerable farmer families enjoy the priority to gain opportunities to work for construction of the railway. Additionally, some vulnerable groups (such as orphan, widow, families enjoying "five guarantees", minorities, families that are poverty-stricken due to diseases, families that are poverty-stricken due to children's education, disabled and psychopath), the local people's government and the headquarters of Shi-Zheng Special Passenger Line will pay the total land compensation and resettlement subsidy to the concerned parties. Other poverty alleviation and preferential treatment will be provided for other vulnerable groups: (1)If they are the relocated families, they enjoy the priority to choose the subsistence homestead in advance; if they are affected by the land expropriation, they enjoy the priority upon land reallocation; (2)The skill training will be provided those women who are the householders of their families. The small-amount credit will be provided for them. (3) The farmer families that are poverty-stricken due to children's education will be provided with the education loan or donation. For example, the loan limit for the primary school student is RMB 500 yuan and that of the middle school student is RMB 1,000 yuan. One family is entitled to apply for loan for two students and the loan limit shall be within RMB 1,500-3,000 yuan. (4) The farmer families that are poverty-stricken due to diseases will be provided with the one-off subsidy. The amount of subsidy for each family is to be approved on the villager's meeting, which will be submitted to the resettlement office at the township level and county level for approval. The range of the subsidy is between RMB 1,000-1 0,000 yuan. (5) The endowment insurance or the lowest living guarantee will be provided for the orphan, widow and the aged. Environment governance The local power organ implementing the expropriation and resettlement is entitled to take charge of the environment governance should the environment issues take place in the course of expropriation and resettlement. The local power organ is established with the environment governance departments. Any and all environment issues met in the course of expropriation and resettlement shall be submitted to the environment governance department for settlement. The environment impact assessement report of the project describes in details the environment issues, resettlement measures and the management mechanism of the project. 12.8 Rational analysis of recovery measures The project construction only brings impact on small part of houses and lands in valliges along the railway line, does not greatly impact original rural production and living system. Emigrant relocation plan is discussed in symposia form in affected towns ahd valliges. Accoding to emigrant opinion and practical situations in affected areas, the following has been determined: Project-affected emigrants will be all resettled in the original communities, so as to maintain original emigrant production and living ways, customs and social relation stabilization and to facilitate emigrants to resume or improve their production and living levels after resettlement. In order to reduce impact of project construction on production and living of affected households, all project-affected houses will not be demolished till new houses are completed. Rural households to be expopriated are all relocated in their original vallige. In terms of production and development, land allocation is primary, second and tertiary industry development is secondary. After economic compensation is transferred to valliges, according to valligers' intention, land shall be adjusted within their villages (resident administration committees) or their groups for land and farming arrangement. For valliges and groups which are greatly impacted by expropriation, according to local related policy, basic living provision system for expropriated farmers shall be established. With the said measures, emigrants' production and living levels can be recovered, improved and increased, so as to realize lasting social stabilization, therefore, preliminary recovery measures plan shall be feasible. I?. Implementation Arrangements 13.1 Resettlement organizations MOR (Ministry of Rai1way)will sing a project work summary with two provinces, railway expropriation and relocation issues will be entrusted to affected local governments. According to summary between MOR and the two Provinces, Hebei Provincial State Land and Resource Bureau will be responsible to lead specific LAR in Hebei section, railway construction party Shitai SPRL Corp. will sign agreement with Hebei Provincial State Land and Resource Bureau on LAR of the project in Hebei section, duties on each party shall be defined, and Hebei Provincial State Land and resource Bureau will coordinate, organize and set up LAR offices at city, county and township levels. Construction of the project section in Henan Province will be responsible by Shiwu SPRL Henan Corp. (preparation group), Henan Provincial Land Reserve Center will lead specific LAR work, Shiwu SPRL Henan Corp. and Henan Provincial Land Reserve Centre will sign agreement on expropriation and relocation of the project section in Hebei Province, duties on each party shall be defined, and Provincial State Land and Resource Bureau will coordinate, organize and set up LAR offices in city, county and township levels. Project construction party shall coordinate and monitor resettlement of affected population. According to project features and broad studies by MOR and local governments, organization chart liable for specific LAR is shown in Fig. 7- 1, 7-2 and Table 7-1. MOR appoints a LAR coordinator and Shizheng special passenger railway line (SPRL) construction party shall as well set up a expropriation and resettlement office. At prefecture level, an LAR office shall be set up in each affected region. In addition, corresponding offices shall be set up in affected districts and counties. Such an office shall contain one districtlcounty leader and 5-8 officers from different agencies, such as communication bureau, land administration bureau, environment bureau and forestry bureau, usually one officer from each bureau. Each affected township shall dispatch at least 4 persons to LAR office, and each village shall delegate at least one person. Such appointed persons shall be liable to perform all work related to resettlement, and execute economic recovery plan in cooperation with township governments and village administration committees. FIG. 7-1 LAR ORGANIZATION CHART (HEBEI PROVINCE COVERAGE)

MOR LAR Hebei Provincial leader Coordinator b team of Shiwu SPRL Construction + 4 LAR leader team LAR leader team of Hebei of Shitai SPRL Provincial State Land and 57 Rresource Bureau Shiwu g 8 SPRL 8 EL5

4 >% % -g J .c T 4 $ + Shiwu SPRL LAR office R v under Hebei Provincial State LAR Office, Land and Resource Bureau Tech. -- Arrangement Dept, Shitai

Municipal State Land and

project under County State Land and construction units Resource Bureau

LAR group at township Y level

LAR group at village level FIG. 7-2 LAR ORGANIZATION CHART (HENAN PROVINCE COVERAGE)

MOR LAR Henan Provincial leader Coordinator b team of Shiwu SPRL Construction I 1 1 LAR leader team of Shiwu SPRL LAR Office Shiwu SPRL Henan under Hebei State Land and 5 g Corp(Preparation Resource Bureau g. 3 Group) 8 e >E? % g 4 ; t 4 Henan Provincial Expro 2 Reserve Center(Provincia1 = Expro & Resettle Office) LAR Office, Tech. Arrangement Dept, - Shwu SPRL Henan Corp. 'I -+ Shiwu SPRL LAR Office under Municipal State --* Land and Resource Bureau

Shiwu SPRL LAR office LAR ~Ifficersof b under County State Land and Resource Bureau construction partyunits "1 LAR group at township + level

'I

LAR group at village level Capacity Building and Staff Training A variety of measures will be taken to support capacity building and ensure effective implementation and control of the RP. These include: 1) Vertical linking agencies will set up reporting system, to report once a month. 2) Horizontal linking agencies will hold coordinating meetings quarterly to enhance information exchange. 3) Issues put forward by the APs will be reported and disseminated through the resettlement offices at each level. 4) Issues which occur during construction will be reported by the resident engineer, first to hislher organizational level and then, if necessary, upwards through each of the hierarchical levels; 5) Problems raised by affected persons and contractors will be delivered to village administration committee, township- county- municipality construction coordination groups. If severe, such problems will also be reported to Shizheng SPRL Corp and project construction leader teams of Hebei and Henan Provinces. 6) Both the MOR and the local governments have carefully chosen persons experienced in land acquisition and resettlement with managerial skills and dada processing skills to train the resettlement institutions of all levels. These persons should be stable along the whole construction period. 7) At the preparation stage, both MOR and the local governments should invite the consulting units to train their major staff members engaged in land acquisition and resettlement and to help them to learn and have a good grasp of China's resettlement policies, the World Bank's requirements and the successful cases of other administrative sectors in China and learn to master the skills of collecting and processing data. Refer to Table 10 for LAR Organization Ability Cultivation and Personnel Training Plan. 8) Internal monitoring, evaluation and problems solving skills will be reinforced when judged to be weak. Table 10 LAR Organization Ability Cultivation and Personnel Training Plan Outlay Training Number of Number of Estimatio Main Contents Trainees Remark Subject Trainees days n(RMB Y lo4) Policy State laws, regulations & policies, World Bank policy, the project A MOR Foreign Capital study LAR policy, compensation measures & standard Centre Coordinator 1.0 LAR LAR organization formation, accountability, objectives, principles, A Deputy GM of LAR & implement LAR implement progress control, compensation fund flows and LAR leader in tech 0.5 control complaint settlement Arrangement of Shitai ew site planning, development and selection, house restoration, SPRL Corp Measures of infrartructurel public facilities, production A Deputy Group Leader of 5.9 for construction 4.0 M LAR & LAR leader in c recovery recovery, income recovery, concern and recovery of vulnerable Domestic .- farmers, training plan, environment harnessing .-C tech Arrangement Dept of Shiwu SPRL Henan Other Method for information release and public participation, technology of information acquisition and processing, investigation method for COT (Preparation :c professiona o project physical impacts, documentation of RAP, internal and Group) 2.0 .G l studies m external monitoring method and report documentation A Shiwu SPRL LAR .-N 5 Visit and study of successful experience from other domestic Office leaders of Hebei I5 persons projects & Henan Provincial 7.0 9.2 -8 State Land and Resource 8> bureaux S A Shiwu SPRLLAR c Office leaders of 9 Experience Shijiazhuang, handan, exchange Xingtai, Xinxiang, Hebi Visit and study of successful experience from foreign projects and Anyang Cities 13.0 31.2 Overseas A RAP leader of No.3 Railway Survey & Design Institute A Leaders of external monitoring agencies -- Sub-total 15 27.5 46.3

G. Budget and Funding Arrangements

14.1 Compensation Standards According to affected date presented in Chapter 11, by use of Law of The People's Republic of China on Land, Hebei Provincial Land Management Regulations, Henan Provincial Implementation Measures for Land Management Regulations, Hebei Provincial Government Notification of Enhancement and Improvement of Expropriation work as well as Establishment of Basic Living Provision System for Expropriated Farmers, and with simultaneous reference to the summary between MOR and Hebei & Henan Provinces, Shijiazhuang Municipal Government General Office Notification of Issuance of Compensation Standard for Young Crops and Attachments in Expropriated Collective Land in Urban Areas within Shijiazhuang Municipal Jurisdiction and Hebi Municipal Notice on Adjustment of Compensation Standard for Attachments on Land Expropriated by State Construction Projects, compensation standard is initialized (in this report, Hebei and Henan provincial compensation standard is temporarily and respectively referenced to Shijiazhuang and Hebi municipal compensation standard for attachments on expropriated land, and may be practically adjusted according to State and local policy over time ).Items unlisted in the standard and other special cases may be specifically measured and negotiated by both sides during LAR process, relying on such base and actual conditions, however, compensation shall not be lower than this standard of the same condition. Table 11 Compensation Standard for Shizheng SPRL LAR (Hebei Province Coverage) Twe I Unit I Compensation Unit Price (RMBY) 1. Expropriation 1.1 Land com~ensation.Resettle grant in aid mou :l)Basic farming land mou 30900 f2)General farming land: garden plot mou 16480 Other general farming land 11328 I3)Unexploited land mou 1500 1.2 Compensation for young crops [ 1)Wheat mou 1000 f2)Corn 1 mou 1 950 (3)other grains and cash crops mou 1100 I4)melon. fruit and solanberry vegetable: non-fruiting mou 1000 major onset of fruiting mou 2600 final stage of fruiting mou 300 (5)leaf vegetables: seedling stage mou 800 Growing and harvest stage mou 2200 1.3 Arable land reclamation cost mou (])Basic farmland mou 9990 (2)General farmland mou 6600 1.4 Attachments on expropriated land 1.4.1 Scattered trees (I )timber forest I I -- Diameter breast height 15 cm and under cm 2 Diameter breast height 15-20 cm cm 5 Diameter breast height 20-25 cm cm 6 Diameter breast height 25-30 cm cm 8 Diameter breast height 30-40 cm cm 10 Diameter breast height 40 cm and above cm 15 (2)Nursery garden Fruit tree nursery tree 2 I -year timber nursery tree 1 2-year timber nursery tree 2.8 Shrub tree 1.5 (3)Fresh fruits Initial fruiting stage mou 1500 Full fruit ~eriod I mou I 2700 - - (4)Dried fruits Small trees(Diameter lOcm and under) tree 70 Table 1 1 (Cont'd)Compensation Standard for Shizheng SPRL LAR (Hebei

Province Coverane',U ~ I Compensation Unit Price Type Unit (RMBY) Middle trees(Diameter 10-20 cm) tree 100 Big trees(Diameter 20 cm and above) tree 150 1.4.2 Flowers herb mou 1000 I woody I mou 1 4000 1 1.4.3 Sod I mou I 5000 2. Demolished buildings 2.1 House buildings (1)Brick-concrete structure m2 350 (2)Brick-timber structure m2 300 I (3)Earth-timber structure I m2 I 200 (4)Simple structure m2 100 1 2.2 Fence wall I I (1)2m and shorter m 70

70 plus increment unit price (2)2m and longer m I I I (RMB Y 15lm added for each increment of 30 cm) 2.3 Tomb cave 300 2.4 Large shed m2 30 (1)Greenhouse m2 25 (2)Steel bar reinforced m2 15 . , I I (3)Brick-timber structure m2 5 1 2.5 Other attachments I I I (1)Manure pool, water reservoir I 1 I Earth made I m2 I 10 Brick & stone made m2 35 Concrete made m2 50 (2)Hog house m2 45 (3)Cattle shed m2 65 (4)chicken & duck house m2 25 (5)lime & lime paste pool Brick & stoen masonrv m2 5 0 1 Earth & concrete hardened I m2 I 15 (6)Fishery pond m2 1500 (7)Electric pole 7.5m hiah pole 238 I 8m high I pole I 33 1 Table 11 (Cont'd)Compensation Standard for Shizheng SPRL LAR (Hebei Province Coverage) Compensation Unit Price Unit I (RMBY) 9m high pole 397 10m high pole 456 10m high pole 549 12m high pole 73 1 (8)Relocated telephone sets set 100 (9)limekiln m3 200 (1 0)Lavatory Brick & stone masonry with roof m2 80 Brick & stone masonry without roof m2 60 (1 1)Gate tower m2 3 00 1 2.5.1 Water ditch 1 m 1 I (])Prefabricated cement pipe(thinner than 30 cm) I m 1 40 - -- ( (2)~refabricatedcement pipe(30-80 cm) 1 m 1 60 (3)Prefabricated cement pipe(above 80 cm) m 150 (4)Cement slab, coverless m 30 I (5)Brick & stone masonry I m I 25

I block stone, brick masonry I m I 50 I Slab stone (brick, concrete) 2.5.3 Pumped well 3500 2.6 Moving & transition subsidy person 3 60 2.7 Fee for three accesses & site leveling at new househould 500 house site Basic Costs(1-2) 3 Expense for administration 1 3.1 Panning- for RAP I 0.1% 1 3.2 Organization ability cultivation1 LAR 0.1% workman training 1 3.3 Unified lump expropriation work cost 1 mou I 900 3.4 Lump demolition work cost m2 2 1 3.5 Land administration charge (State land 2.0% of total and resource bureau) expropriation price 3.6 Internal independent monitoring 0.1% organization 3.7 External independent monitoring agency 0.2% 0.5% of expropriation 4 Contingencies compensation find Table 12 Compensation Standard for Shizheng SPRL LAR (Henan Province Coverage) Compensation Unit Unit Price

I I 3 cm and thinner tree 1 3-5 cm tree 5 - 5-10 cm tree 12 4Grane- 1 year old & younger tree 3.5 2-3 year old tree 5 4-7 year old tree 30 !. Demolished buildings !.l House buildings 1)Brick-concrete structure m ' 295 2)Brick-timber structure m ' 265 3)Earth-timber structure mZ 2 10 4)Simple structure mL 80 !.2 Fence walls(1)Brick mL 2 5 Table 12 (Cont'd)Compensation Standard for Shizheng SPRL LAR (Henan Province Coverage) Compensatio Type Unit n Unit Price (RMBYI- (2)Earth mL 19 (3)Adobe construction m 14 2.3Tomb cave 400 2.4 Large shred mL 3 0 (1)Greenhouse mL 40 (2)Steel bar reinforced mL 5 5 (3)Brick-timber mL 45 2.5 Other attachments (1)Water (biogas) storage pool m' 150 (2)Power & communication lines Concrete electric pole 8-10 high pole 180 Concrete electric pole 1 1-1 5 high pole 260 Wooden electric pole pole 80 (3)Off-village lavatory Brick wall m 40 L Earth wall or Adobe construction m 2 5 (4)Courtyard flooring Cement flooring mL 25 Brick flooring mL 20 Cinder flooring m 15 (5)Fishery pond Formal fishery pond with water depth 2m or more, complete facility, nutritious water mou(water surface) 3500 Simple fishery pond, with water depth less than 2m, poor water quality, lack of facility mou(water surface 1600 2.5.1 Water channel m With cross section more than 1mL m 50 With cross section 0.5-lmL m 40 With cross section less than 0.5mL m 25 Earth channel m 10 2.5.2 Water wells (1)Pumped well 40 m deep, brick masonry well PC 3500 (2)brick masonry well with diameter 1.2 m & depth 10m PC 1800 (3)well with diameter less than 1.2 m & depth less thanlOm PC 300 (4)Hand-pumped well PC 230 2.6 Other LAR costs (1)Sweet potato silo PC 150 Basic costs(1-2) 2.7 Moving & transition subsidy person 360 2.8 Fee for three accesses & site leveling at new house site househould 500 3.1 LAR planning 0.1% 3.2 Organization ability cultivation/ LAR workman training 0.1% 3.3 LAR administration charge (State land and resource bureau) 3.5% As per Rh4B Y 18,0001 km acc. to 3.4 Survey delimitation cost delimitates length 3.5 Internal independent monitoring organization 0.1% 3.6 External independent monitoring & supervision 0.2% 0.5% of expropriation 4Contingencies compensation find 14.2 Budget Sufficiency By LAR sub-item cost estimation, total cost is RMBY928.35 millions (where RMBY542.97 millions for Hebei Province and RMB Y385.38 millions for Henan Province). It can be seen that total LAR cost of RMBY933.25 millions (where RMBY 55 1.7 millions for Hebei Province and RMB Y382.3 millions for Henan Province) estimated in design and environment evaluation is fully sufficient. Table 13 LAR Estimates ( Hebei Province Coverage) Table 14 LAR Estimates (Henan Province Coverage)

Unit price Cost(RMB Compensated Item Type of loss Quantity Unit (RMBY) Y104) 1. Expropriation 21474.0 Basic Irrigated land 6058 mou 30900 18719.2 farmland Vegetable field 293 mou 30900 905.4 1.1 Expropriation General 468 mou 1 1328 530.2 compensation farmland House sites and others 1.2 Compensation 6351 mou 1000 635.1 for young crops 1.4 Attachments

5.4 Lump demolition work cost

Note: such unit prices may not be used for compensation, but for evaluation estimation. 14.3 Fund flow The most basic principle is that the compensation shall be paid to organizations and individuals who directly take charge of rehabilitation of the original facilities and incomes. According to the compensation policy and times mentioned above, the Ministry of Railways will sign compensation agreement with Henan and Hebei provinces, and both provinces will assign the local land administrations 1 expropriation and resettlement offices, supporting institutions, companies, and public facilities institutions to make a detailed compensation payment plan. The compensation will be made according to the said agreement, and the time set forth in the said agreement. The different forms of payment of compensation may result in great differences. In most cases, an institution dedicated to rehabilitation of public facilities will directly get the payment, just as a collective or a farmer family that suffers from property loss directly gets payment. The compensation for young crops will be directly paid to the farmers and the forest bureau that owns the woodlands. All transit and relocation subsidies as well as compensation for temporary use of a land will be directly paid to the affected people. The land cultivation fee will be directly paid to the governmental agency that directly takes charge of land cultivation. The land compensation and resettlement subsidy are initially paid to the village collectives. According to the relevant laws, it is very flexible for the collectives who own the lands to use this sum of money. The collective organizations may use this sum of money in some economic activities (either agricultural or non-agricultural economic activities), or use this sum of money to improve the public facilities and infrastructures or to hold training courses, or directly pay it to the affected farmer families. According to the relevant laws, the villager representative meeting is the organization that may make the decision, which shall be approved by the township government. Payment of land compensation: in the case of land adjustment, some compensation will be paid to the collective 1 village commission who own the lands, and they are responsible for improving the productivity and recovering the economic level of the affected people (including those who lose their lands during land adjustment). In the case of no land adjustment or collective investment, the land compensation shall be directly paid to the farmers who lose their lands. Payment of expropriation and resettlement subsidies: these subsidies will be paid to the organization that is responsible for resettling the affected farmers, and it is usually a village commission or a collective that owns the lands. These organizations shall be responsible for providing the farmers with appropriate measures for recovering the incomes. In the event that such measures are not provided or the affected people are willing to take their own measures, the subsidies shall be directly paid to the farmer families. In this case, it is not necessary to provide the strategy for recovering incomes. However, these farmer families must prove that they have got plans or measures for use of the subsidies for income recovery. In evaluation whether or not the resettlement action plan succeeds, these farmer families shall be included in the samples. The resettlement action plan especially focused on the ways the collectives that own the lands use the controllable compensations. Particularly, in each affected village, a villagers meeting shall be held to make the following decisions: whether or not to carry out land adjustment and the degree of land adjustment, and the proportion of compensations directly paid to the affected farmer families. Use of the partial compensations the collective keeps. Whether or not provide new sites for the farmers and public buildings, and the locations of the new sites. The purpose of acquisition of approval of the said plan from the county and township governments as well as internal and external supervision is to make sure that the decisions each village makes is transparent, acceptable to most people, and made directly for the

affected farmer families that lose lands and / or properties - either directly or in land re-allocation. The impacts and risks brought to the vulnerable groups must be identified and resolved. Picture 3 provides the simple description of the hnd flow. Table 3 Flow of compensation

Ministry of Railways, and provincial governments of Henan and Hebei(construction investment companies of Henan and Hebei)

Relocation and resettlement sections of the land resource departments of Henan and Hebei

Municipal / county land resource bureau -

1 1 v 1 1 Affected farmer Privately owned Collective Infrastructure families and public organizations facility Forest bureau buildings institution Property loss, Land loss, Lost land subsidy for building loss + (compensation + Loss of cables Woodland temporary land subsidy subsidy) and pipelines loss use

7 Affected farmer Collective organizations Labor bureau / families town

Cash payment Agricultural and non- for lncome recovery, like training agricultural activities courses

H. Consultation, Disclosure and Grievance Procedures 15.1 Public Participation 15.1.1 Public Participation in Project Preparation Phase Public consulting of this project started with the series of surveys that TSDI did in 2005. After that, TSDI conducted field investigation and initial social and economic survey. One of the purposes of field investigation is to inform the villages along the railway of construction of Shi-Zheng Special Passenger Line. Another purpose is for the designers to understand the local situations and the concerns of the local farmers, including establishment of sufficient cross passageways and remaining of existing irrigation systems. At that time, most affected people got certain understanding of the project. During socio-economic investigation (April to August, 2006), 1,390 households in 60 affected towns ware practically investigated, where only a minor part of farmers (10%) did not know massage about shijiazhuang-Zhengzhou special passenger railway line. This message was known to the public through meetings of the officials at all levels, newspapers, TV stations, as well as the field surveys of the three institutes. Four major consulting meetings were held in the project area. Local officials from the districts, counties and towns (including the land resource bureaus) as well as some affected people took part in the meetings. Table 15 shows some key consulting meetings and the discussed issues. The conclusions of these meetings and surveys deeply affect the policies set forth in the resettlement action plan. Particularly, they played a critical role in determination of the compensation ratio, as well as formulation of income rehabilitation strategy based on land re-allocation, direct payment of compensations, and life / training plans. Table 15 Records of stakeholder involvement and consulting I I Number I Organization 1 Date 1 Attendees 1 of 1 Purpose I Feedback / major issues discussed or concerned persons Hold a symposia with the responsible persons of the local governments and the relevant departments (about 80 government officials took part in the symposia), to introduce both comprehensive and detailed information such as the routing, major technical specifications, significance, and project implementation of the railway, Conduct field so that the local governments along the line can verification of the understand almost all issues relating to the project, whicl roadmap for they are concerned about. Also, the local governments Farmers, feasibility study reported the symposia through TV, radio and village of the project. newspapers, so that the public could understand the October officials, Collection and project in detail. TSD1 840 2004 local survey of basic In selection of the routing, interference with villages / government data. buildings shall be avoid whenever possible, so as to officials Collect ideas reduce relocation. from the local During field verification, detailed survey of the villages , governments buildings affected by the routing shall be made in detail, along the line. and symposia shall be held with the planning management departments of the local governments. Comprehensive comparison shall be made in regards to routing, railway engineering, avoidance of interference with buildings, etc. Since there are not many farmlands along the line, the plan with less farmlands occupied shall be selected.

Farmers, Mid inspection in During the mid inspection, the local governments village he field, to check consider from the angles of city planning, long-term ovembe~ officials, the coordination development, reduction of land expropriation, impact of '2005 local 540 of the routing the railway buildings on the local landscapes, etc. government with the clq The railway design partially interferes with the planning officials planning and of the local government (which is in design). . road planning Farmer Support project construction, and assist in inspection -epresentativ Social and The local people expressed their attitudes towards the es, village economic survey project, April- officials, as during Visit the farmer families along the designed line. TSD1 August as 750 preparation of the consult the affected people, including some farmers, an 2006 officials resettlement visit some towns and villages. from action plan (the Social and economic information about the affected counties and first phase) communities towns Attendees of these meetings include representatives fror the affected villages. Officials from the project execution organization and thl districts preside the meetings. The land resource ~~k~ bureaus, execution organization, and other governmenta preparations for agencies provide technical recommendations and Farmers, survey of assistance. Project village resettlement Implications, merits and weakness of different ways of April- >fficials, anc and impact and compensation / land adjustment are discussed. August local 320 implementation development of The consulting meetings are involving and transparent, 2006 government agencies resettlement and the invited villager representatives give their officials action plan as preferential ways and express their attitudes towards lar well as income adjustment. The attendees show their support to the project. The local government officials state the prospect of economic development after project implementation. Reasonable compensation shall be made so that the affected people can recover their standard of living. Number of all persons involved in the 2450 consulting In addition to the meetings mentioned above, a number of meetings were held between the three institutes, the local environmental protection administrations, and the local land resource administrations (Oct. 2004-Dec. 2006.) to discuss in depth how to reduce relocation from routing selection and station construction, and how to perform the resettlement action plans, including the policies and requirements of the World Bank, the needed information, the policies and action plans for expropriation and resettlement as well as income rehabilitation. The municipal governments along the line all put forward clear recommendations and requirements on routing and station construction, which the design institute has incorporated in the design. 15.1.2 Public involvement and consulting plans in the phase of project implementation Although public consulting has been conducted for a number of times, the Ministry of Railways and the local governments both believe consulting meetings shall be held during implementation of the resettlement action plans, and that the following contents shall be included in the activities to be held: Official villagers meetings held to approve land re-allocation and payment of compensation. Detailed field surveys to measure the final data about expropriation and relocation of each affected farmer family / company, and to reach agreement. Table 16 includes the time schedule and contents of a consulting plan. Table 16 Public consulting plan Time Implementation Task Attendees Remarks Purpose of activity schedule organization Project implementation Distribution of 1. To announce the organization, and the All ~i~~~ib~~i~~to the towns,,,p outlines of the Jan. 2007 -esettlement organizations affected action plan resettlement organizations resettlement action plan of the counties, cities, people brochures districts, and towns Project implementation Issuance of the 2. To announce the organization, and the All Chinese Issuance through all local media Linal resettlement actior Jan, 2007 governments of the affected resettlement and open to all affected people plan counties, cities, districts people action plan and towns 3. To conduct detailed Project execution and (i) All checklists of lands and measurement and implementation properties of expropriation; (ii) Face to face organizations, the All production of name list of the surveyannounce theand -esettlement organizations affected affected people that have been -esettlement action plan cy!$lT Ja;i:;b of counties, cities, people verified; (iii) preparation of basi people updated according to districts and towns, as materials for (signing) the the results of DMS well as township officials compensation contracts. Early 2007 (i) Provide and distribute new residential lands; (ii) finalize thc 4. Finalization and (including The expropriation and implementation of the meetings resettlement officer of AII removal of Villagers counties, cities, districts affected ~~~~~~t~~~~~~~!~~bd; village-level meeting all issues on (iii) discuss and how resettlement action and towns, as well as people the to use / invest the compensatior plans village officials resettlement that is not distributed to the action plan) affected people Project implementation (i) Publicize to the affected organizations, the people the procedure for 5. To establish -esettlement organizations All complaint and Posters and complaining; (ii) establish the Early 2007 of counties, cities, affected nformation distribution booklets transaction system; districts, and towns, as and (iii) make publicization in mechanism well as the local the affected villages government officials 7 15.2 Information Disclosure The expropriation and resettlement work is a very critical social work. Information about the expropriation and resettlement shall be released in advance, so as to make sure the relevant people understand the objectives of the project, as well as the policies and procedures concerning land expropriation, expropriation and resettlement, compensation, complaining, and appeal. The project execution organization will issue a resettlement action plan by January 2007. The resettlement action plan will be announced through the media of Henan and Hebei by early December 2007. 15.3 Complaint Channel During the actual implementation of the land acquisition and the resettlement of displaced population, if the affected population have any problems, grievances and discontent regarding land acquisition, housing demolition, compensation payment and resettlement, they may appeal to either (1) the project owner, (2) the external independent monitoring institution, (3) the township and the county land administration department, (4) the county government or (5) take legal action. 0 Appealing to the Project Owner Unit. The project owner is the eventual user of the land acquired, and has the duty to resolve problems arising from land acquisition, housing demolition and resettlement. Project owner units Shitai SPRL Corp. and Shiwu SPRL Henan Corp (Preparation Group) will perform construction liabilities during project construction and will execute operation and management liabilities after project completion. O Appealing to the External Monitoring Institution. The external monitoring institution conducts chasing-up investigation on the production of affected villages several times in the year during the monitoring period, evaluates the resettlement consequences and submits its M&E reports to the project owner, the local institutions conducting land acquisition and housing demolition and the World Bank. The affected persons, therefore, may express their discontent and grievances to the external monitoring institution, which is obligated to listen to and find out the dissentient and grievances. I7 Appealing to the Township and the County Land Administration Department. According to the administrative procedure of the local government, the discontent and grievances rising from acquisition and resettlement should first be handled by the land administration department. This should be facilitated by township leaders in the purpose of assisting vulnerable groups and dealing with AP's grievances. In case the land administration department is unable to resolve the grievances, the appealer may turn to other conduits. These are the conduits of the land administration departments the appealer may go to: A. The municipal land administration bureau; B. The county land administration bureau; and C. The township land administration bureau. Appealing to the County Government. If the discontent can not be resolved by n the land administration department, it can be appealed to the "correspondence and visitation department" of the local governments, set up by various levels of government organs to handle letters and visits from the masses. The appealer may express his discontent orally or in writing to the correspondence and visitation departments, which may coordinate departments concerned to have the matter resolved. If again the discontent cannot be resolved in this way, the correspondence and visitation departments will report the matter to the leaders of the local government. Legal Action. If discontent and grievances can not be resolved through the above 4 conduits, the appealer may resort to legal action by bringing the case to the court. I. Monitoring Arrangements

16. Monitoring Arrangements In order to ensure that the implementation of the land acquisition and resettlement plan is in accordance with requirements, monitoring of implementation, both "internal" and "external", will be carried out during and after the implementation of the Project.

16.1 Internal Monitoring 16.1.1 Organizations and Personnel Internal monitoring of project LAR work is presided by Shiwu SPRL LAR leader teams of State Land and resource Bureaux of Hebei and Henan Provinces and executed by CROs(command headquarters) and villages. In order to execute internal monitoring hnction effectively, special persons are appointed in RAP organization at different levels, who have already participated in preparation and implementation of RAP and will internally monitor and control RAP execution and practice. 16.1.2 Monitored Contents Emigrant compensation payment and application; New house sites selection and allocation; Private house reconstruction; Support to vulnerable group; Employment arrangement of affected labourers; Quality and quantity of newly reclaimed land; Land adjustment and allocation; Payment of land grant in aid; Resettlement of enterprises and business households; Special facility recovery; Schedule of said activities; Execution situation of RAP policy and regulations; 0 Emigrant participation and negotiation during implementation; Staffing, training, work timetable and operating condition of LAR organization at different levels. 16.1.3 Implementation Procedure A. Shiwu SPRL LAR leader teams of State Land and resource Bureaux of Hebei and Henan Provinces will promote internal monitoring operation mechanism to check LAR activities, to build up LAR basic database and to monitor the whole process of LAR preparation and implementation. B. During implementation, RAP organizations at different levels shall build up corresponding RAP information depositories and update them according to practical implementation progress, transfer current activity records and implementation progress to RAP organization at higher level, so as to monitor RAP implementation continuously. C. In the said monitoring operation mechanism, information form in specified format will be drawn up, so as to realize continuous information flow from village level to project emigrant relocation office. CROs (Command headquarters) and township (town, street) relocation work groups are important part of internal monitoring system, and will make regular inspection and verification. 16.2 External Monitoring and Evaluation An institute or organisation totally independent of the both parties of EA, and independent of the local governments along the alignment, to be contracted as the lead agency to carry out the external monitoring and evaluation work under this RP. A preferred candidate for this task is the Southwest Jiaotong University (SWJU) in Chengdu which already has experience in monitoring work for international agencies. 16.2.1 Methodology and Content The general methodology will involve a mix of one-on-one questionnaires administered to households, and participatory rapid appraisal techniques (PRA) repeated on a six-monthly or yearly basis during the resettlement and construction activities associated with the project. The household surveys will concentrate on the changes in economic activity, incomes and other social conditions of individual households. Key indicators will include: household composition, ethnicity, education and skill levels, experience in positions of influence, pre-acquisition rights over land, size and condition of house, accumulated assets, annual income, relative mix of productive activities, marketing channels, access to utilities and services (including social services and irrigation systems), and nature and frequency of major social and cultural activities. This survey will provide a series of socio-economic indicators which can subsequently be monitored in order to evaluate the success of the resettlement and income restoration process. Refer to Table 17 for major monitored indicators. Table 17 Mi )r Monitored Indicators

Item Indicator Content

Compensation standard Whether put in place,

Compensation fund flow and Whether received by affected persons on time payment time 'rocess 2ommunication and consultation channel :ontrol 3etween managers and affected people are ndicators :stablished and unblocked. Extent and Information communication :ffectiveness of disclosure of information about ;ompensation standards and their selection, LAR process and recovery measures.

Complaint settlement Whether or not timely and effective

New site planning, Whether or not implemented on schedule and development and selection effective Whether or not implemented on schedule and House recovery effective Infrastructure1 public facilities Whether or not implemented on schedule and reconstruction effective Whether or not implemented on schedule and Production recovery Recovery effective indicators Whether or not implemented on schedule and Income recovery effective Concern and recovery of Whether or not implemented on schedule and vulnerable farmers effective Whether or not implemented on schedule and Training plan effective Whether or not implemented on schedule and Environment harnessing effective Details of annual RAP execution, reasons for Overall LAR progress progress delay Whether or not general living and production Composite General living and production levels of affected population are recovered or evaluation levels indicators improved after LAR completion Comprehensive project efficiency, validity, Integral effectiveness of LAR impact and sustainability of the project LAY policy and practice policy and practice In addition, the baseline survey, undertaken as soon as possible after the DMS will ask questions on: Household plans to do when confronted with the impending loss of land and/or housing, The extent and effectiveness of the dissemination of information on compensation standards and options, acquisition processes and restitution measures. The baseline survey will also ask an open-ended question about the farmers' anticipations and apprehensions regarding the impending land acquisition and resettlement process. The baseline survey should give the complete socioeconomic profile of the sampled APs with gender-disaggregated data and details of losses. The PRA surveys will be conducted at the village level and will include similar indicators to those described above but focussing on the village as a whole. The objective is to provide a wider assessment of the effectiveness of the resettlement process than is possible from the surveys of individual households. These surveys will involve focus group discussions and key informant interviews. Experience shows that these surveys can provide a greater understanding of changes in socio-economic conditions than can be obtained from household interviews. In contrast, the household interviews are more suitable for providing a set of quantifiable indicators which can be compared over time. Subsequent surveys will use the same format but with greater emphasis given to the changes that have occurred since the baseline survey was undertaken, the actual timing of compensation related activities (signature of contracts, disbursement of funds, identification of new housing sites, construction of new buildings, effectiveness of grievance procedures, and on general levels of satisfaction/ dissatisfaction with the resettlement process. Both household and PRA surveys will be designed to distinguish between changes that are attributable to involuntary resettlement and loss of land and those that result from external factors, e.g. a slump in vegetable prices, the opening of a new factory, etc. The surveys will be completed by interviews with owners or directors of the non-residential establishments affected, eg. schools, enterprises.

16.2.2 Sampling As required by the World Bank, the baseline survey for launching monitoring and evaluation (M&E) activities should cover 10 percent of the APs. At this stage, it is anticipated that around 6696 households will be affected giving a total sample size of around 670. A two-stage stratified random sample should be used. The first stage sampling will involve the selection of 71 of the affected villages. The initial selection of villages should involve those losing which will be most affected by land and property losses. Around 10 households should be sampled in each selected village. The sample will be chosen randomly from the schedule of affected households obtained during the DMS.

16.2.3 Survey Timing The schedule has been designed to provide, as required, six investigations throughout the implementation of the project (one baseline survey, two yearly evaluation surveys, two semi-annual monitoring surveys and a post-construction evaluation survey). The household surveys would be repeated every year starting with the baseline survey implemented as soon as possible after the DMS. The PRA-type surveys would be repeated every 6 months within two year after the start of the land acquisition and resettlement. All selected villages would be visited at this time and annually when the household surveys are being carried out. The final post railway construction survey should take place approximately one year after the construction is completed. Its main objective is to assess whether the objectives of the RP were achieved, i.e. whether the restoration of income and welfare has been efficiently and adequately restored, and whether the land acquisition and resettlement process has been effective.

16.3 Reporting and Distribution 16.3.1 Internal Monitoring Report System and Delivery Village and township level reports will be prepared on a monthly basis so that prompt action can be taken, if necessary, by higher-level officials without adversely affecting the resettlement execution. County resettlement officer shall quarterly report to internal monitoring group of provincial resettlement office under Shizheng SPRL Corp, and the group shall then report to Shizheng SPRL Corp. Copies of these reports will be submitted to the World Bank. These reports should include: name of reporting agency, date of reporting, details on the implementation of the resettlement programs scheduled for that year, reasons for any delays, problems encountered, corrective actions and their results, and problems that need to be resolved at a higher level. In addition to the above arrangements, the traditional financial watchdog - the Audit Bureau - will at each level of Government be monitoring and auditing the fund use in the compensation program. 16.3.2 External Monitoring Report System and Delivery Monitoring evaluation reports documented by external independent monitoring agency shall be presented annually to MOR, Hebei and Henan Provincial governments, county governments, township governments and World Bank, where reports submitted to World Bank must be written in English. The baseline survey should be reported in full. Subsequent reports should provide summaries of principal findings, tabulations of key indicators, qualitative and quantitative descriptions of main changes in socio- economic changes of APs and affected villages and conclusions and implications, if any, for additional action1 assistance. The report on the post-construction survey will constitute a final assessment report on the resettlement process and detail the extent to which the compensation paid and other measures have enabled APs to maintain or enhance their pre-project social and economic living conditions.