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RP895 V3 Public Disclosure Authorized World Bank Financed Zhaotong Central City Environmental Construction Project Public Disclosure Authorized Social Assessment Report Public Disclosure Authorized China Cross-Cultural Consulting Center at Sun Yat-sen University November 21, 2009 Public Disclosure Authorized I Abstract Entrusted by the Yunnan Provincial Management Office and Zhaoyang District Management Office of the World Bank Financed Yunnan Urban Environment Project, the social assessment (SA) experts from the China Cross-Cultural Consulting Center at Sun Yat-sen University (CCCC at SYU) went to Zhaoyang District, Zhaotong Municipality for a field SA investigation of the three subprojects under the World Bank Financed Zhaotong Central City Environmental Construction Project (hereinafter referred to as the “Project”) from September 17 to November 12, 2009, and completed the SA report of the Project on November 21, 2009 on schedule. The Project consists of three subprojects, which are the central city river management project, the northern area water supply and pipeline project and the central city sewage treatment and intercepting sewer project. The Project involves 3 sub-districts and 4 Townships of Zhaoyang District, which are Longquan Sub-district, Taiping Sub-district, Fenghuang Sub-district, Beizha Town, Xiaolongdong Xiang, Yongfeng Xiang and Shouwang Xiang, benefiting a total population of 318,192, including an urban beneficiary population of 110,158, accounting for 34.62% of total beneficiary population, a rural beneficiary population of 169,288, accounting for 53.20%, and a temporary beneficiary population of 38,746, accounting for 12.18%. The affected place is a state-level poor county/district. The Project will benefit 33 poor communities/villages and a poor population of 16,300, accounting for 5.82% of total beneficiary population, including a poor rural population of 12,600. In addition, the affected areas involve an ethnic minority population of 85,311, accounting for 21.47% of the population of the affected areas. At the preparatory stage of SA, the SA experts of the World Bank identified the key social factors affecting the fulfillment of project objectives: The possible key social influencing factors of the river management project include the behavior of the affected groups, community participation, institutional arrangements, poverty, willingness and ability to pay, etc.; The possible key social influencing factors of the northern area water supply and pipeline project and the central city sewage treatment and intercepting sewer project include land acquisition and house demolition, the lifestyle of the affected groups, poverty, willingness and ability to pay, etc.; Ethnic minorities: The social factors of concern include the policies applicable to ethnic minorities, demographic, social and cultural characteristics of ethnic minorities, learning specific requirements of ethnic minorities through consultation, I acquiring support of ethnic minority communities for the Project through consultation, and proposing measures to avoid or reduce negative impacts on ethnic minority communities adapted to ethnic minority cultures. Around the above social factors that may affect the fulfillment of the objectives of the Project, this report focuses on the following on the basis of SA fieldwork information: 1. The ethnic minorities in the affected areas, and the impacts of the Project on ethnic minorities, so as to determine if it is necessary to develop a separate ethnic minority development plan for the ethnic minorities in the affected areas. The SA team has analyze the cultural characteristics of the ethnic minorities in the affected areas, the impacts of the Project on ethnic minorities and how to ensure that ethnic minorities are equally benefited in line with the World Bank policy OP4.10. 2. The poor population in the affected areas, and the impacts of the Project on the poor population. The Project will benefit a rural poor population of 12,600 and an urban poor population of 3,700, where poor population accounts for 5.82% of the total population benefited by the Project. All the three subprojects involve land acquisition or house demolition. Relatively poor communities and population are often disadvantaged in resettlement using compensation fees, benefiting from the Project and making forward adaptation. In some projects that involve the relocation of urban residents, the affected poor population may suffer from reduced income sources (e.g., rent income) and damage to existing interpersonal relations. In addition, after the Project is completed, increased sewage and waste treatment charges may increase the burden on urban poor households. However, the project design covers both rural and urban poor population. From the following perspectives, the existing project plan and design will not marginalize the poor population or create more poor population: First, the Project will improve the living environment and conditions, and improve the health level of the poor population; second, the Project will also provide job opportunities to the poor population and increase their income; third, after the Project is completed, the preferential charging policies for the poor population will alleviate the burden on the poor population effectively; and fourth, the Resettlement Action Plan (RAP) focused on the cultural and development needs of the poor population will help the poor population restore livelihoods and offer development opportunities. 3. Involuntary resettlement arising from the Project: Land acquisition and house demolition will lead to changes in livelihoods and reduced income of involuntarily II displaced persons, and may also result in a series of potential and long-term social, cultural and mental adjustments. 4. Progress of payment, willingness and ability to pay of the affected areas: A preferential policy is in place on the payment of charges by the poor population in Zhaoyang District. Certified five-guarantee families, some disabled people (unsecured subsistence, and holding a Level 2 or above disability certificate) and other groups with living difficulties are exempt from water charges (including sewage treatment charges) for 3 m3 per month-household. The SA team has found through door-to-door interview and FGD that both rural and urban residents can afford the prevailing water rates, and are willing to pay the costs for the supporting facilities (water meter, etc.) to be purchased for the Project. 1. Behavior of the affected residents and environmental protection: This report pays particular attention to how the environmental protection awareness and lifestyle of the affected groups are suited to the objectives of the Project, and thinks that the environmental issues arising in the affected areas are closely associated with the lifestyle of the affected groups in the affected areas. 2. Involvement of the primary stakeholders in the Project: In the fieldwork, the SA team conducted free, prior and informed consultation with the primary stakeholders by means of FGD, interview, drawing and ranking, and made an analysis of development issues, needs for the Project, impacts of the Project and suggestions for the Project together with them. On this basis, the SA team has developed the participation outline for the primary stakeholders. The SA team thinks the social benefits of the Project are embodied mainly in the following: 1. The Project is an integral part of Zhaotong Municipality’s effort to improve the environmental quality of key river basins and urban areas, drive the urbanization of Zhaotong Central City and implement a sustainable development strategy, and a priority action for the state, Yunnan Province and Zhaotong Municipality to drive industry restructuring through urban improvement. All subprojects are urgent in the local socioeconomic development process today. The implementation of these projects will play an active role in improving basin and regional environmental quality, urban environment and living conditions, expanding spaces of urban development, improving urban image and investment environment, and promoting urbanization. 2. The promotional effects of the Project to urban economic development will be shown over a long term. These effects mainly include: (1) improving urban environment; (2) improving urban infrastructure; (3) laying a foundation for the development of Zhaoyang District’s tourism, agriculture, service and other related III industries; (4) providing job opportunities to related industries during and after the construction period; and (5) providing a guarantee for further urbanization. 3. The Project will also drive the institutional capacity building of the environmental protection bureau and other related departments in the affected areas. Applying the advanced project management philosophy and approaches of the World Bank to establish an advanced office management system can help train a number of management personnel for environmental and World Bank projects, deepen these departments’ understanding of the project team and international cooperative projects, and expand the Project’s social influence and benefits. In addition, the Project will also foster and enhance the environmental protection awareness of the affected residents. 4. The Project covers both rural and urban poor population, and will improve the living environment and conditions, and improve the health level of the poor population. The Project will also provide job opportunities to the poor population
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