PRC: Anhui Integrated Transport Sector Improvement Project

Resettlement Planning Document

Resettlement Plan Document Stage: Draft for Consultation Project Number: 42018 July 2009

Prepared by Anhui Highway Administration Bureau.

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

ADB Financed Anhui Integrated Transport Sector Improvement Project

Resettlement Plan for S105 Longtang-Chaohu Section

(Draft)

Anhui, China May 2009

Letter of Commitment

Through the Ministry of Finance, Anhui Provincial Government (hereinafter called as APG) has applied for a loan from ADB to finance this subproject. Therefore, it must be implemented in compliance with the guidelines and policies of ADB on social security. This Resettlement Plan is in line with a key requirement of ADB and will constitute the basis for land acquisition, house demolition and resettlement of this subproject. The Plan also complies with the laws of the People’s Republic of China and local regulations, as well as with some additional measures and the arrangements for implementation and monitoring for the purpose of achieving better resettlement results.

APG hereby approves the contents of this Resettlement Plan and guarantees that funds will be made available as stipulated in the budget. APG has discussed the draft Resettlement Plan with relevant units that have confirmed their acceptance via Anhui Highway Administration Bureau and affected counties, and authorizes the Anhui Project Management Office for ADB Financed Projects as the responsible agency to generally manage the implementation of this subproject and relevant resettlement activities, and the local governments of the affected areas to be responsible for the implementation of this subproject and related resettlement activities within the respective jurisdictions.

Agencies Signature date Anhui Highway Administration Bureau Feidong Government Juchao Government

Executive Summary

1. Background

The S105 Longtang-Chaohu Section Reconstruction Project is one of the subprojects of the ADB financed project—Anhui Integrated Transport Sector Improvement Project. The subproject will promote the construction of the provincial capital economic circle with Hefei being the center and Lu’an and Chaohu being the wings, and drive the integrated development of Hefei, Lu’an and Chaohu Cities. It will have great significance in the construction of the provincial capital economic circle. Meanwhile, it will change the traffic conditions of the affected areas, reduce transport and resource development costs, strengthen the development of natural and tourist resources in the nearby areas, and promote economic development.

The land acquisition and resettlement of the subproject involves 13 villages in 2 Xiangs/towns of Feidong County, Hefei City and 13 Villages in 3 Xiangs/towns of Juchao District, Chaohu City. The subproject will commence in 2009 and be completed in 2011, and the implementation plan for land acquisition, house demolition, compensation and resettlement will be put into practice in May 2009, and completed by January 2011. The estimated resettlement expenses of the subproject are 52.072 million yuan (based on prices of 2008), including basic expenses for land acquisition (occupation) and house demolition, relevant taxes and unexpected expenses, accounting for5.8% of the whole project budget.

2. Resettlement Impacts

3. Policy framework and entitlements

To avoid or minimize the negative impacts of land acquisition, the affected villager teams and displaced persons have been consulted on the selection of the relocation sites at the feasibility study stage, and the optimum option has been chosen through comparative selection.

This Resettlement Plan has been formulated in accordance with the Land Management Law of the People’s Republic of China (2004), the Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28), the applicable policies of Anhui Province, ADB’s Involuntary Resettlement and policies on social security. The resettlement principles of the subproject are as follows based on the above policies and through consultation with the local governments and

the affected people: (1) Involuntary resettlement should be avoided where feasible; (2) The affected people are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project; (3) The affected people are given compensation and assistance in resettlement whether legal title is available or not; (4) If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land; (5) The affected people fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan; (6) No land should be acquired before the affected people are satisfied with the compensation and resettlement (plan); (7) The executing agency and an independent agency / third party should monitor the compensation, relocation and resettlement operations; (8) The vulnerable groups (including women) are provided special assistance or treatment so that they lead a better life, and all affected people should have an opportunity to benefit from the project; (9) The Resettlement Plan is consistent with the master plans of the affected counties and towns; and (10) The resettlement expenses are sufficient to cover all affected aspects.

4. Resettlement strategy

The compensation for permanent land acquisition includes land compensation, resettlement subsidy and crop compensation. The average annual output value of paddy field and dry land of Feidong County, Hefei and Juchao District, Chaohu—the areas affected by land acquisition—n the past 3 years was 1,125 yuan/mu, and that of housing sites and other land 750 yuan/mu; the compensation multiple for land acquisition is 16, in which the multiple of land compensation is 10, and that of resettlement subsidy 6.

Temporary land occupation includes that for borrow pits and other purposes. The compensation standards for temporary land occupation are: single compensation for borrow pits: 12,000 yuan/mu; other land 4,000 yuan/mu· year. The occupation period will be 2 years. After expiry of the occupation period, the land will be restored by the implementing agencies, with a land reclamation fee of 4,000 yuan/mu. Occupation of arable land should be avoided in the temporary land occupation for borrow pits. If this is unavoidable, low-lying land and derelict land with lower output value and likely to be affected by inland inundation should be occupied where possible.

The compensation standards for the demolition of residential houses are: masonry concrete structure: 410 yuan/m2, masonry timber structure: 260 yuan/m2, simple structure: 80 yuan/m2, moving subsidy: 500 yuan/person, and transition fee: 21 yuan/m2 month.

The measures for income restoration of the affected people include cash compensation, provision of technical training and priority in employment, etc. Since permanent land acquisition is caused by road construction mainly, the impacts of the subproject are in a linear form. Based on statistical analysis, though the amount of land acquisition is relatively large, it is scattered and has very moderate impact on the regular agricultural production of rural households. According to the different socioeconomic backgrounds of AVs, the use and relocation of land acquisition fees

1 It will be compensated based on the factual transitional period, which will not be beyond 18 months.

including land compensation and resettlement subsidy which will be determined by village meeting is also different. In general, land compensation and resettlement could be disbursed to affected households directly, collective villagers or invested by the collectives. The crop compensation will be paid to affected households directly. When they get the compensation, the affected households will use the compensation fees for land improvement and the expanded reproduction of household sidelines. Borrow pits can be restored by turning them into fishponds, irrigation ponds or garbage landfills. Demolished houses can be restored by property right exchange or self-demolition and self-building.

The Anhui Project Management Office (PMO) has arranged a special fund of 600,000 yuan for the technical training of the labor force of the affected households (in which the female labor force is about 50%). In the meantime, a special fund will be set up to support the vulnerable groups, with a total amount of 351,000 yuan (1% of the basic resettlement expenses). The Anhui PMO will use this fund specifically to support the vulnerable groups affected by the subproject together with the civil affairs authorities of the affected counties.

5. Public participation and information disclosure

All affected people (with 30% being women) have been informed of the key information of the Resettlement Plan in many ways, such as meeting, interview, villager team discussion, public participation meeting and community consultation, and involved in the subproject through the above activities. Their opinions have been taken into account in the Resettlement Plan. The resettlement information booklet and the Resettlement Plan will be distributed to the affected people or villager teams by the end of Jun 2009 and the draft Resettlement Plan will be published on the ADB website by the end of Jul 2009. An appeal channel has been established, and all agencies will accept complaints and appeals from the affected people free of charge, and all costs reasonably incurred will be disbursed from the contingency expenses of the subproject.

6. Complaints and appeals

An appeal procedure has been formulated to settle disputes over compensation and other resettlement benefits for the purpose of responding to the affected people’s complaints timely and transparently. Possible complaints may arise from the acquisition of collective land, temporary land occupation and house demolition, etc. In this respect, the Anhui Provincial Communications Department (APCD), the highway administration bureaus of all levels and the affected town governments and village committees will coordinate and settle complaints and appeals possibly arising from the resettlement process. The displaced persons may file an appeal for any aspect of resettlement, including compensation standards.

7. Organization

The APCD Foreign-funded Project Management Office is the executing agency of the subproject, the Anhui Highway Administration Bureau (AHAB) is an implementing agency of the subproject, and the relevant highway administration bureaus (headquarters) of all levels and town governments will be responsible specifically for the implementation of the Resettlement Plan.

8. Monitoring, evaluation and reporting

To ensure the successful implementation of the Resettlement Plan, the subproject will perform internal and external monitoring of the implementation of resettlement. The internal monitoring agency of the subproject is APCD. Internal monitoring will be executed jointly by AHAB and other competent authorities (e.g., land and resources bureau). A monitoring will be submitted to ADB semiannually. The Anhui PMO will entrust an independent monitoring agency to perform external monitoring and evaluation semiannually. The monitoring and evaluation expenses will be included in the estimate of resettlement expenses.

9. Budget for resettlement expenses

All expenses incurred during land acquisition and resettlement will be included in the general budget of the subproject. Based on prices of December 2008, the total resettlement expenses of the subproject are 52.072 million yuan, including expenses for the acquisition of rural collective land of 23.671 million yuan, accounting for 45.5% of total expenses; compensation for temporary land occupation of 6.516 million yuan, accounting for 12.5%; compensation for demolition of rural residential houses of 4.883 million yuan, accounting for 9.4%; compensation for infrastructure and ground annexes of 55,000 yuan, accounting for 0.1%; and taxes and management fees of 16.946 million yuan, accounting for 32.5%.

Glossary

Affected People affected by project-related changes in use of land, water or person (AP) other natural resources Money of payment in kind to which the people affected are entitled in Compensation order to replace the lost asset, resource or income Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are Entitlement due to affected people, depending on the nature of their losses, to restore their economic and social base Income Reestablishing income sources and livelihoods of people affected restoration Rebuilding housing, assets, including productive land, and public Relocation infrastructure in another location Loss of physical and non-physical assets, including homes, Resettlement communities, productive land, income-earning assets and sources, effect subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms A time-bound action plan with budget setting out resettlement Resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring plan and evaluation Vulnerable Distinct groups of people who might suffer disproportionately from group resettlement effects

Abbreviations

ACTVC - Anhui Communications Vocational & Technical College ADB - Asian Development Bank AHAB - Anhui Highway Administration Bureau APCD - Anhui Provincial Communications Department Anhui Provincial Communications Investment Group APCI - Company APG - Anhui Provincial Government PMO - Project Management Office RP - Resettlement Plan PRC - People’s Republic of China

Notes

Currency unit - Yuan $1.00 = 7.00 yuan I ha = 15mu

Contents ABBREVIATIONS ...... 1 1 OVERVIEW ...... 1

1.1 BACKGROUND ...... 1 1.1.1 Background of the subproject ...... 1 1.1.2 Composition of the subproject and identification of displaced persons ...... 1 1.1.3 Summary of resettlement impacts of the subproject...... 1 1.2 SOCIAL AND ECONOMIC BENEFITS ...... 1 1.3 INVESTMENT ESTIMATE AND IMPLEMENTATION PLAN OF RESETTLEMENT ...... 1 2 IMPACTS OF THE SUBPROJECT ...... 2

2.1 MEASURES TO AVOID OR MINIMIZE LAND ACQUISITION AND HOUSE DEMOLITION ...... 2 2.1.1 Principles for design and relocation site selection of the subproject...... 2 2.1.2 Comparative selection of options ...... 2 2.2 RANGE OF SURVEY OF LAND ACQUISITION AND HOUSE DEMOLITION IMPACTS ...... 3 2.3 METHODS AND PROCESS OF SURVEY ...... 3 2.4 PERMANENT ACQUISITION OF COLLECTIVE LAND AND IMPACT ANALYSIS ...... 4 2.4.1 Permanent acquisition of collective land ...... 4 2.4.2 Impact analysis of acquisition of collective land ...... 5 2.5 TEMPORARY LAND OCCUPATION ...... 10 2.6 DEMOLITION OF RESIDENTIAL HOUSES AND IMPACT ANALYSIS ...... 14 2.7 AFFECTED INFRASTRUCTURE AND GROUND ANNEXES ...... 15 2.8 AFFECTED POPULATION ...... 16 2.8.1 Summary ...... 16 2.8.2 Affected vulnerable groups ...... 19 2.8.3 Impacts of the subproject on women ...... 19 3 SOCIAL AND ECONOMIC PROFILE ...... 21

3.1 SOCIAL AND ECONOMIC PROFILE OF AFFECTED AREAS ...... 21 3.1.1 Social and economic profile of affected cities ...... 21 3.1.2 Social and economic profile of affected towns ...... 22 3.1.3 Social and economic profile of affected villages ...... 23 3.2 SOCIAL AND ECONOMIC PROFILE OF AFFECTED POPULATION ...... 26 3.2.1 Basic economic situation of affected population ...... 26 4 LEGAL FRAMEWORK AND POLICIES ...... 30

4.1 LAWS, REGULATIONS AND POLICIES APPLICABLE TO RESETTLEMENT ...... 30 4.2 ADB POLICIES ...... 30 LAWS, REGULATIONS AND POLICIES OF THE PRC ...... 32 4.3 ...... 32 4.4 MAIN DIFFERENCES BETWEEN ADB POLICIES AND LAWS OF THE PRC ...... 37 4.5 PRINCIPLES FOR COMPENSATION OF THE SUBPROJECT ...... 38 4.6 CUT-OFF DATE OF COMPENSATION ...... 38 4.7 DETERMINATION OF COMPENSATION STANDARDS FOR RESETTLEMENT IMPACTS OF THE SUBPROJECT ...... 39 4.7.1 Acquisition of collective land ...... 39 4.7.2 Compensation for temporary land occupation ...... 39 4.7.3 Compensation standards for house demolition ...... 40 4.7.4 Compensation for annexes and infrastructure ...... 40 4.7.5 Standards for other costs ...... 40 4.7.6 Vulnerable groups ...... 41 4.7.7 Special measures for women ...... 41 4.8 ENTITLEMENT MATRIX ...... 42 5 RESETTLEMENT AND INCOME RESTORATION ...... 46

5.1 PURPOSE OF RESETTLEMENT ...... 46 5.2 RESETTLEMENT AND RESTORATION PLANS FOR AFFECTED VILLAGES ...... 46 5.2.1 Introduction of resettlement and restoration plans for affected villages ...... 46

5.2.2 General strategy of restoration measures for permanent land acquisition ...... 46 5.2.3 General strategy and measures for demolition of residential houses ...... 47 5.2.4 Resettlement and restoration plans for key villages ...... 48 5.3 TRAINING FOR DISPLACED PERSONS ...... 54 5.4 PROTECTION OF WOMEN’S RIGHTS AND INTERESTS ...... 55 5.5 ASSISTANCE MEASURES FOR VULNERABLE GROUPS ...... 55 5.5.1 Measures for the Disabled ...... 55 5.5.2 Measures for low-income or poor households ...... 56 5.5.3 Measures for seriously affected households ...... 56 5.6 RESTORATION PLANS FOR TEMPORARILY OCCUPIED LAND ...... 56 5.6.1 Restoration plan for land occupation for borrow pits ...... 56 5.6.2 Restoration plan for other temporarily occupied land ...... 56 5.7 RESTORATION PLAN FOR INFRASTRUCTURE ...... 57 6 RESETTLEMENT ORGANIZATION ...... 58

6.1 MANAGEMENT AGENCIES FOR RESETTLEMENT IMPLEMENTATION ...... 58 6.1.1 Organizational setup ...... 58 6.1.2 Responsibilities of agencies ...... 58 6.2 STAFFING AND FACILITIES ...... 60 6.2.1 Staffing ...... 60 6.2.2 Facilities ...... 60 6.2.3 Institutional training program ...... 60 7 PUBLIC PARTICIPATION, COMPLAINTS AND APPEALS ...... 63

7.1 PUBLIC PARTICIPATION ...... 63 7.1.1 Participation at the preparation stage ...... 63 7.1.2 Participation plan for the implementation stage ...... 64 7.2 COMPLAINTS AND APPEALS ...... 65 8 RESETTLEMENT BUDGET ...... 66

8.1 RESETTLEMENT BUDGET...... 66 8.2 RESETTLEMENT INVESTMENT PLAN AND SOURCES OF FUNDS ...... 68 8.3 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 68 9 RESETTLEMENT IMPLEMENTATION PLAN ...... 69

9.1 PRINCIPLES FOR RESETTLEMENT IMPLEMENTATION ...... 69 9.2 SCHEDULE FOR RESETTLEMENT IMPLEMENTATION ...... 69 10 MONITORING AND EVALUATION ...... 71

10.1 INTERNAL MONITORING ...... 71 10.2 EXTERNAL MONITORING ...... 72 10.2.1 Scope and methods of external monitoring ...... 72 10.2.2 External monitoring reporting ...... 73 10.3 POST-RESETTLEMENT EVALUATION ...... 73 APPENDIXES ...... 74

APPENDIX 1 SCHEMATIC MAP OF THE SUBPROJECT ...... 74 APPENDIX 2 SOCIAL AND ECONOMIC INFORMATION OF AFFECTED TOWNS ...... 75 APPENDIX 3 GENDER ANALYSIS OF AFFECTED AREAS ...... 76 APPENDIX 4: DISTRIBUTION STRUCTURE SAMPLING SURVEY ...... 78 APPENDIX 5 POLICIES ON ENDOWMENT INSURANCE OF FARMERS DEPRIVED OF LAND ...... 79 APPENDIX 6:PUBLIC PARTICIPATION AND MINUTES ...... 88 APPENDIX 7 DETAILED RESETTLEMENT BUDGET ...... 90 APPENDIX 8 :RESETTLEMENT INFORMATION BOOKLET ...... 93

List of Tables TABLE 1-1 IDENTIFICATION OF SCOPE OF CONSTRUCTION AND RESETTLEMENT IMPACTS ...... 1 TABLE 2-1 OPTIONS FOR COMPARATIVE SELECTION OF THE SUBPROJECT ...... 2 TABLE 2-2 ADMINISTRATIVE DIVISIONS AFFECTED BY RESETTLEMENT ...... 3 TABLE 2-3 SUMMARY OF COLLECTIVE LAND TO BE PERMANENTLY ACQUIRED ...... 4 TABLE 2-4 IMPACT ANALYSIS OF ACQUISITION OF COLLECTIVE LAND ...... 7 TABLE 2-5 PROPORTIONS OF LOSS OF LAND OF AFFECTED HOUSEHOLDS ...... 9 TABLE 2-6 DEGREES OF LOSS OF ARABLE LAND OF AFFECTED HOUSEHOLDS ...... 9 TABLE 2-7 RESTORATION PLAN FOR HOUSEHOLDS AFFECTED BY LAND ACQUISITION ...... 10 TABLE 2-8 SUMMARY OF TEMPORARY LAND OCCUPATION ...... 12 TABLE 2-9 SUMMARY OF RURAL RESIDENTIAL HOUSES AFFECTED BY DEMOLITION ...... 14 TABLE 2-10 DEGREES OF IMPACT OF DEMOLITION OF RESIDENTIAL HOUSES ...... 14 TABLE 2-11 AFFECTED GROUND ANNEXES...... 15 TABLE 2-12 SUMMARY OF AFFECTED POPULATION ...... 17 TABLE 2-13 SUMMARY OF AFFECTED VULNERABLE GROUPS ...... 19 TABLE 3-1 SOCIAL AND ECONOMIC CONDITIONS OF AFFECTED CITIES AND COUNTIES ...... 22 TABLE 3-2 SOCIAL AND ECONOMIC PROFILE OF AFFECTED VILLAGES ...... 24 TABLE 3-3 PUBLIC OPINION SURVEY ...... 28 TABLE 4-1 ABSTRACT OF LAND MANAGEMENT LAW AND RELEVANT POLICIES ...... 33 TABLE 4-2 MAIN PROVISIONS OF GUO FA [2004] NO.28 AND MLR FA [2004] NO.238 AND APPLICATION ...... 35 TABLE 4-3 PRINCIPLES FOR RESETTLEMENT OF THE SUBPROJECT ...... 38 TABLE 4-4 COMPENSATION MULTIPLES AND STANDARDS FOR COLLECTIVE LAND ACQUISITION ...... 39 TABLE 4-5 COMPENSATION STANDARDS FOR TEMPORARY LAND OCCUPATION ...... 40 TABLE 4-6 COMPENSATION STANDARDS FOR RURAL RESIDENTIAL HOUSES AND ANNEXES ...... 40 TABLE 4-7 COMPENSATION STANDARDS FOR ANNEXES AND INFRASTRUCTURE ...... 40 TABLE 4-8 TAX STANDARDS FOR RESETTLEMENT OF THE SUBPROJECT ...... 41 TABLE 4-9 ENTITLEMENT MATRIX ...... 43 TABLE 5-1 WILLINGNESS FOR DEMOLITION OF RESIDENTIAL HOUSES AND RESETTLEMENT OF RURAL RESIDENTS ...... 48 TABLE 5-2 TECHNICAL TRAINING PROGRAM FOR DISPLACED PERSONS ...... 55 TABLE 6-1 STAFFING OF RESETTLEMENT AGENCIES ...... 60 TABLE 6-2 RESETTLEMENT TRAINING SCHEDULE ...... 61 TABLE 7-1 PUBLIC PARTICIPATION AT THE PREPARATION STAGE ...... 63 TABLE 7-2 PUBLIC PARTICIPATION PROGRAM OF THE SUBPROJECT ...... 64 TABLE 8-1 BUDGET OF RESETTLEMENT EXPENSES ...... 67 TABLE 8-2 RESETTLEMENT INVESTMENT PLAN OF THE SUBPROJECT ...... 68 TABLE 10-1 PROGRESS REPORT OF LAND ACQUISITION, HOUSE DEMOLITION AND RESETTLEMENT . 71 TABLE 10-2 IMPLEMENTATION SCHEDULE OF FUND USE ...... 72 TABLE 10-3 SCHEDULE OF RESETTLEMENT MONITORING AND EVALUATION ...... 73

List of Figures FIGURE 2-1 COLLECTIVE LAND ACQUIRED ...... 5 FIGURE 3-1 AGE DISTRIBUTION STRUCTURE ...... 26 FIGURE 5-1 HOUSES TO BE DEMOLISHED IN THE SUBPROEJCT AND RESETTLEMENT HOUSES OF SIMILAR PROJECTS BUILT IN A UNIFIED MANNER AFTER DEMOLITION ...... 50

1 Overview

1.1 Background

1.1.1 Background of the subproject

Since the beginning of the Tenth Five-year Plan, Anhui Province has realized a rapid growth of traffic infrastructure by increasing investment and accelerating construction under the direction and support of the state macro-policies. An integrated traffic system composed mainly of trunk railway lines, expressways, main navigable channels and key airports has taken form. In particular, as the key link between the expressway network and the rural highway network, the national and provincial trunk highway network of the province plays an important role in creating a multi-layered, efficient highway transport system. However, this trunk highway network can hardly meet future transport demand due to its irrational hierarchical structure, relatively low technical standard of highways, and relatively low equivalent mileage. Therefore, it is necessary to improve the existing trunk highway network to improve its throughput greatly, realize the intensive utilization of land resources, and give full play to the service efficiency of the existing traffic resources at the cost of relatively small land occupation. At the present stage, various restrictive conflicts in highway development have emerged, and there is a great pressure in funding and a sharp conflict between the demand for huge funds and the increasingly tensioned financial environment. In order to relieve the financial pressure and make reasonable use of funds to build the trunk highway network, AHAB decided to use ADB lending to rebuild and expand some trunk highways in the province in 2008, of which the reconstruction project of the S105 Longtang-Chaohu Section is part.

1.1.2 Composition of the subproject and identification of displaced persons

The subproject starts from the Longtang Interchange at the junction between S105 and the South Ring Expressway of Hefei, runs to western Cuozhen Town along the S105 route, bypasses Cuozhen Town, connects the old highway, crosses the Huainan Railway in southeast Cuozhen, runs through Qiaotouji, crosses a local railway at a newly-built railway bridge near Wanghaijian through, then continues to run along the old highway via Huaji, central Miaoji and Zhonghan Towns to Chaohu, and ends at Bantang Road, Chaohu, with a full length of about 50.28km. The whole section will be built as a 4-lane Class-I highway with a design speed of 80km/hour and a roadbed width of 24.5 meters. The schematic map of the subproject is shown in Appendix 1. Based on a preliminary impact identification, the subproject will involve land acquisition and resettlement. The scope of road network construction and the resettlement impacts of the subproject are shown in Table 1-1.

Table 1-1 Identification of Scope of Construction and Resettlement Impacts Present situation After construction Starting and Mileage Road Road Town along the No. Road code Surface Surface Main resettlement impact ending pile No. (km) Class bed Class bed route (m) (m) (m) (m) Permanent acquisition of 472.8 mu of land, Cuozhen Town, K0+000 affecting 2,184 people out of 546 households; 1 6.85 II 17 12 I 24.5 21 Feidong County, -K6+850 demolition of 1,198m2 houses, affecting 49 Hefei people out of 13 households Permanent acquisition of 193.4 mu of land, Qiaotou Town, K6+850 affecting 908 people out of 227 households; 2 9.45 II 17 12 I 24.5 21 Feidong County, -K16+300 demolition of 6,747m2 houses, affecting 263 Hefei S105 people out of 66 households Longtang-Chaohu Permanent acquisition of 371.1 mu of land, Tongyang Town, Section K16+300 affecting 1,616 people out of 404 households; 3 14.8 II 17 12 I 24.5 7 Juchao District, Reconstruction -K31+100 demolition of 3,034m2 houses, affecting 144 Chaohu Project people out of 39 households Permanent acquisition of 358.7 mu of land, Zhonghan Town, K31+100 affecting 1,648 people out of 412 households; 4 10.25 II 17 12 I 24.5 21 Juchao District, -K41+350 demolition of 3,034m2 houses, affecting 82 Chaohu people out of 22 households Woniushan K41+350 Permanent acquisition of 21.8 mu of land, 5 8.93 II 17 12 I 24.5 21 Sub-district, Juchao -K50+280 affecting 116 people out of 27 households District, Chaohu

1.1.3 Summary of resettlement impacts of the subproject

The resettlement impacts of the subproject mainly include permanent and temporary land occupation and the demolition of rural residential houses, involving 26 administrative villages in 5 Xiangs/towns of Hefei and Chaohu Cities. 1,417.8 mu of collective land will be acquired, including 979.1 mu of arable land, affecting 6,708 people out of 1,678 households; 472.2 mu of collective land will be occupied temporarily, affecting 1,712 people out of 428 households temporarily; 12,607m2 of residential houses will be demolished, affecting 538 people out of 140 households; 7 types of infrastructure and ground annexes will be affected.

1.2 Social and economic benefits

The social and economic benefits of the subproject are as follows: 1. There are numerous enterprises and Xiangs/towns along Provincial Highway S105, which is an important passage between Anhui Province and the economically developed Jiangsu Province. The reconstruction of S105 can improve the traffic environment along the route, and strengthen the tie between Anhui Province and the developed eastern regions. 2. The subproject will change the traffic conditions of the affected areas, reduce transport and resource development costs, strengthen the development of natural and tourist resources in the nearby areas, and promote economic development. 3. The national and provincial trunk highway network is the key link between the expressway network and the rural highway network. The improvement of its service quality can improve the efficiency of the expressway network and the rural highway network in all aspects, and give play to the benefits of the whole road network system. Therefore, the subproject is required to improve the service level and structure of the province’s road network.

1.3 Investment estimate and implementation plan of resettlement

The construction investment in the subproject is about 904 million yuan, which will be raised from the following 3 sources: ADB lending, domestic bank lending and funds raised by the employer. The resettlement expenses are 52.072 million yuan, accounting for 5.8% of total investment, all being domestic counterpart funds. The overall construction period of the subproject is 2 years. In conformity with the construction period, the Resettlement Implementation Plan will be implemented from the end of 2009 to 2011.

2 Impacts of the Subproject

2.1 Measures to avoid or minimize land acquisition and house demolition

2.1.1 Principles for design and relocation site selection of the subproject

Land acquisition and house demolition will be minimized at the construction stage on the following principles:  Avoiding or minimizing the occupation of existing and planned residential areas;  Avoiding or minimizing the occupation of high-quality arable land;  Utilizing existing national and local roads to lead to the proposed construction area; and  Avoiding or minimizing the occupation of environmentally sensitive zones.  Involve affected people in detailed design of alignment and passageways and selection of borrow pits to minimize resettlement impacts.

2.1.2 Comparative selection of options

During the design of the subproject, the negative impacts of construction, especially the number of displaced persons, have been minimized by making field investigation of the affected areas repeatedly and optimizing the project design on the precondition of realizing the intended results. Therefore, the amount of land acquisition and house demolition has been minimized, as shown in Table 2-1. In addition, during the detailed design stage, the measures to avoid or minimize land acquisition and house demolition will be further optimized through further consultation with affected people.

Table 2-2 Options for Comparative Selection of the Subproject Project Option 1 Option 2 Conclusion The route runs through The demolition area of residential The road is rerouted to Cuozhen Town, involving houses has been reduced by the south of the town, the demolition of 18,781.2m2, and the affected avoiding the demolition numerous residential population by 257 people; that of of residential houses, 2 houses, entities and entities and stores by 380m , and the entities and stores stores affected population by 64 people. The route runs through The demolition area of residential The road is rerouted to Tongyang Town, houses has been reduced by the north of the town, involving the demolition 20,313m2, and the affected S312 avoiding the demolition of numerous residential population by 214 people; that of of residential houses, houses, entities and entities and stores by 2,590m2, and entities and stores stores the affected population by 46 people. The former route runs The demolition area of residential The road is rerouted to through Zhonghan Town, houses has been reduced by the north of the town, involving the demolition 27,699.2m2, and the affected avoiding the demolition of numerous residential population by 274 people; that of of residential houses, 2 houses, entities and entities and stores by 1,058m , and entities and stores stores the affected population by 35 people.

2.2 Range of survey of land acquisition and house demolition impacts

According to the recommended option, the resettlement impacts of the subproject involve 26 administrative villages (neighborhood committees, communities) in 5 Xiangs/towns of 2 cities. The scope of survey of the impacts of the subproject is shown in .

Table 2-3.

Table 2-3 Administrative Divisions Affected by Resettlement Route County Town/ Pile No. City Village/ neighborhood committee code /district Xiang K0+000 Xin’an, Huaguang, Zhaoguang, Xianfeng, Feidong Feidong County County Cuozhen -K6+850 Hefei Zhenxing Shanwang, Qiaotouji Neighborhood K6+850 Qiaotouji Committee, Longquan, Qiao’an, Hongguang, -K16+300 Guoguang, Tongshan, Taiping S105 K16+300 Juchao District Tongyang Xinqiao, Taihe, Qiyang, Heyu, Sanfen -K31+100 Chaohu K31+100 Zhonghan Town Neighborhood Committee, Zhonghan -K41+350 Miaoji, Jianhua, Guangyan K41+350 Wujia Community, Jiatang Community, Woniushan -K50+280 Qiaodong, Qiaotou

2.3 Methods and process of survey In November 2008, the Anhui Provincial Construction Department entrusted the Anhui Highway Design Institute to prepare the Proposal for the ADB Financed Anhui Integrated Transport Sector Improvement Project, which was approved by the Anhui Development and Reform Commission. During August-November 2008, the engineering technicians of the Anhui Provincial Communications Planning, Survey and Design Institute conducted a survey of the affected physical indicators in the affected areas with the assistance of the affected villages and villagers as required by ADB to learn the resettlement impacts of the subproject. In November 2008, the Anhui Transport Administration Bureau entrusted the Anhui Highway Design Institute to prepare the Feasibility Study Report of the S312 Project, which is expected to be approved in July 2009. From December 2008 to March 2009, the resettlement survey team of ACTVC and Hohai University conducted a sampling survey of the social and economic conditions of the affected areas and the rural households (426) affected by land acquisition and house demolition according to the feasibility study report. The survey covered household population, impacts of land acquisition and house demolition, household economic condition and willingness for resettlement, etc. During the survey, the survey team also listened to the opinions of the village committees and the villagers about land acquisition, house demolition and resettlement, and conducted extensive consultation. In March 2009, on the basis of the feasibility study and survey data of the subproject and public participation, the Resettlement Plan of the subproject was completed, which analyzes and evaluates the resettlement impacts and risks of the subproject, and proposes preliminary remedies. This Resettlement Plan will be updated on the basis of completion of the detailed design. The resettlement will be implemented referenced to updated RP.

During the survey, the survey team also listened to the opinions of the village committees and the villagers about land acquisition, house demolition and resettlement, and conducted extensive consultation. The main findings were as follows: 1) Almost all affected rural households welcome the project and know the project will be commenced soon. 2) Almost all affected households thought the impacts of land acquisition to them were slight. After land acquisition, they could cultivate the remaining land and prefer to cash compensation. 3) The compensation should be disbursed in time and transparently and intermediate links should be minimized as much as possible. 4) Prior to house demolition, it should be implemented after the arrangement of house relocation site and compensation disbursement.

2.4 Permanent acquisition of collective land and impact analysis

2.4.1 Permanent acquisition of collective land

The subproject will acquire 1,417.8 mu of collective land, including 110 mu of paddy field (7.8%), 869.1 mu of dry land (61.3%), 17.9 mu of housing sites (1.3%) and 420.8 mu of other land (29.7%), affecting 6,472 people out of 1,616 households. The acquisition of collective land is shown in Table 2-4.

Table 2-4 Summary of Collective Land to Be Permanently Acquired Affected 3 Route County Paddy Dry Housing 2 population City Pile No. Town Village Other Total code /district field land site Househ Popula olds tion Xin’an 1.1 5.6 0 32.6 39.3 43 172 Cuozhen Cuozhen Huaguang 12.6 89.6 0.6 4 106.8 120 480 K0+000 Zhaoguang 2 96.4 0 10.5 108.9 128 512 -K6+850 Xianfeng 5 89.7 1.2 21.5 117.4 134 536

Feidong County Zhenxing 2.9 97.5 0 0 100.4 121 484 Shanwang 0 6.5 1.1 13.5 21.1 25 100

Hefei Hefei Qiaotouji s105 Neighborhood 0 8.6 1.4 9.5 19.5 23 92 Committee Qiaotouji Qiaotouji Longquan 0 4.8 0 9.7 14.5 18 72 K6+850 -K16+300 Qiao’an 1.1 9.7 1.4 12.4 24.6 30 120 Hongguang 0 7.6 2.3 8.6 18.5 22 88 Taiping 0.5 11 1.9 11.5 24.9 29 116 Guoguang 0 11.7 0 12.8 24.5 31 124 Tongshan 0 12.6 0.6 32.6 45.8 49 196

2 It refers to path through fields, flood land and wasteland etc.

3 It was estimated by the cadre of affected villages during the surveys.

Affected 3 Route County Paddy Dry Housing 2 population City Pile No. Town Village Other Total code /district field land site Househ Popula olds tion Xinqiao 3.8 32.8 0.7 32.6 69.9 78 312 Tongyang Tongyang Taihe 5.6 16 1.5 19.5 42.1 47 188 K16+300 Qiyang 9.5 29.3 2 15.5 56.3 61 244 -K31+100 Heyu 32.5 103 0.3 0 135.4 145 580 Sanfen 13.5 21.6 0.2 32.1 67.4 73 292 Zhonghan Juchao District Town Zhonghan Zhonghan 2.1 25.7 2.1 32.6 62.5 78 312 Chaohu Chaohu Neighborhood K31+100 Committee -K41+350 Miaoji 2.6 32.9 0 34.7 70.2 79 316 Jianhua 12.5 75.7 0.6 23.6 112.4 123 492 Guangyan 2.7 65.3 0 45.6 113.6 132 528 Wujia Woniushan Woniushan 0 4.5 0 1.4 5.9 7 29 Community Jiatang K41+350 0 2.4 0 1 3.4 5 23 -K50+280 Community Qiaodong 0 5.4 0 1.6 7 8 37 Qiaotou 0 4.1 0 1.4 5.5 7 27 Total 110 869.1 17.9 420.8 1,417.8 1,616 6,472 Proportion 7.8% 61.3% 1.3% 29.7% 100.0%

Figure 2-1 Collective Land Acquired

2.4.2 Impact analysis of acquisition of collective land

According to statistics, the villages affected by the subproject have 81,253 mu of arable land in total, and 979.1 mu of arable land will be acquired in the subproject, affecting 6,472 people out of 1,616 households, accounting for 1.2%. Since the subproject involves road reconstruction in a linear distribution, most of the people affected by land acquisition will lose part of their land only. A comparative analysis of the arable land of the affected villages before and after land acquisition has been made according to the social and economic survey. Among the 26 affected villages, the degree of impact ranges from 0.1% (Jiatang Community) to 4.8% (Xianfeng Village). The arable land is affected by land acquisition to a very low extent. In terms of income loss, the per capita loss ranges from 225.5 yuan to 38.95 yuan. The analysis of the villages affected by land acquisition is shown in Table 2-5. Among the 6,472 people out of 1,616 households affected by land acquisition,

6,405 people out of 1,600 households have a land loss rate of less than 10%, 67 people out of 16 households 10%-19%, and no rural household has a degree of impact of over 20%. Among the 1,600 households with a land loss rate of less than 10%, 51 households (3.1%) have 1-3 mu, 408 households (25.24%) have 3-5 mu, and 1,141 households (70.6%) have over 5 mu. Among the 16 households with a land loss rate of 10%-19%, 2 households (0.1%) have 1-3 mu, and 4 households (0.2%) have 3-5 mu, and 10 households (0.6%) have over 5mu. The analysis of the degree of impact of the households affected by land acquisition is shown in Error! Reference source not found. and Error! Reference source not found.. Since industry has developed rapidly on a large scale and become a pillar industry in Feidong County and Juchao District, the proportion of agriculture is low. There are 1,821 private enterprises in Feidong County, including textile, apparel and chemical enterprises. Industry clusters, such as the private economic park and the Zhonghan Anchor Chain Zone, have come been created in Juchao District, with 566 enterprises in total. Almost every household in these areas have labor working at a nearby or a non-local enterprise. In particular, Feidong County is renowned as the “Town of Architecture”, and is a state-level and province-level labor service export base, where about 70% of the farmers’ income comes from employment, and the proportion of agricultural income is as low as below 20%. In sum, the land acquisition of the subproject has little impact on the regular agricultural production and agricultural income of the rural households, and also on the gross income of the farmers.

Table 2-5 Impact Analysis of Acquisition of Collective Land Before acquisition Impact of acquisition Proportion affected Income loss (yuan) % of Proportion Proportion total County Town/ Total Total Affected Affected Arabl Proportion Average Per Village Arable of of Annual incom /district Xiang house- populati house- populati e land of house- loss per capita land (mu) population acquisition loss e of holds on holds on (mu) holds (%) house-hold loss (%) (%) per capita Xin’an 880 2,998 1,800 43 172 6.7 4.90% 5.70% 0.40% 6,700 155.8 38.95 0.5% Huaguang 980 4,488 5,060 120 480 102.2 12.20% 10.70% 2.00% 76,650 638.8 159.7 2.0% Cuozhen Zhaoguang 1,226 3,402 3,759.50 128 512 98.4 10.40% 15.00% 2.60% 87,507.50 683.7 170.9 2.5% Xianfeng 951 3,510 1,980 134 536 94.7 14.10% 15.30% 4.80% 79,992.50 597 149.2 1.3% Zhenxing 1,255 4,,050 3,900 121 484 100.4 9.60% 12.00% 2.60% 100,400 829.8 207.4 2.3% Shanwang 1,081 3,582 2,881.90 25 100 6.5 2.30% 2.80% 0.20% 6,340.75 253.6 63.41 1.6% Qiaotouji Feidong Neighborhoo 842 3,776 1,785.60 23 92 8.6 2.70% 2.40% 0.50% 7,550.38 328.3 82.07 0.9% County d Committee Longquan 321 1,284 1,540.80 18 72 4.8 5.60% 5.60% 0.30% 4,682.40 260.1 65.03 0.8% Qiaotouji Qiao’an 378 1,512 1,814.40 30 120 10.8 7.90% 7.90% 0.60% 9,481.87 316.1 79.02 1.1% Hongguang 628 2,267 1,742.40 22 88 7.6 3.50% 3.90% 0.40% 8,448.38 384 96 1.0% Taiping 947 3,493 2,948.10 29 116 11.5 3.10% 3.30% 0.40% 11,208.70 386.5 96.63 1.3% Guoguang 473 1,892 2,270.40 31 124 11.7 6.60% 6.60% 0.50% 9,379.50 302.6 75.64 1.4% Tongshan 530 1,794 1,901 49 196 12.6 9.20% 10.90% 0.70% 9,975 203.6 50.89 1.2% Xinqiao 1,144 4,331 4,200 78 312 36.6 6.80% 7.20% 0.90% 36,600 469.2 117.3 1.9% Taihe 1,100 4,060 4,965 47 188 21.1 4.30% 4.60% 0.40% 23,737.50 505.1 126.3 1.8% Tong- Qiyang 1,084 4,073 2,073.60 61 244 38.8 5.60% 6.00% 1.90% 32,333.30 530.1 132.5 2.0% yang Heyu 1,048 4,216 4,470 145 580 135.1 13.80% 13.80% 3.00% 130,788 902 225.5 3.7% Sanfen 1,233 4,753 5,843.40 73 292 35.1 5.90% 6.10% 0.60% 36,835.20 504.6 126.1 1.9% Zhonghan Town Juchao 802 3,412 2,086 78 312 27.8 9.70% 9.10% 1.30% 28,921.20 370.8 92.7 1.3% Neighborhoo District Zhong- d Committee han Miaoji 821 3,204 3,437.90 79 316 35.5 9.60% 9.90% 1.00% 44,375 561.7 140.4 1.6% Jianhua 1,498 5,955 7,307 123 492 88.2 8.20% 8.30% 1.20% 95,550 776.8 194.2 2.6% Guangyan 1,025 3,865 4,850 132 528 68 12.90% 13.70% 1.40% 67,296.40 509.8 127.5 1.4% Wujia Woniu- 578 2,312 2,312 7 29 4.5 1.20% 1.30% 0.20% 4,663.15 666.2 160.8 1.8% Community shan Jiatang 593 2,372 2,372 5 23 2.4 0.80% 1.00% 0.10% 1,945.78 389.2 84.6 0.9%

Before acquisition Impact of acquisition Proportion affected Income loss (yuan) % of Proportion Proportion total County Town/ Total Total Affected Affected Arabl Proportion Average Per Village Arable of of Annual incom /district Xiang house- populati house- populati e land of house- loss per capita land (mu) population acquisition loss e of holds on holds on (mu) holds (%) house-hold loss (%) (%) per capita Community Qiaodong 603 2,412 2,412 8 37 5.4 1.30% 1.50% 0.20% 4,869.69 608.7 131.6 1.8% Qiaotou 385 1,540 1,540 7 27 4.1 1.80% 1.80% 0.30% 3,404.61 486.4 126.1 1.9% Total 22,406 84,553 81,253 1,616 6,472 979.1 7.20% 7.70% 1.20% / / / /

Table 2-6 Proportions of Loss of Land of Affected Households Land loss Route County Total City Town/ Xiang Village 10% or less 10%-19% code /district House House House Population Population -holds -holds -holds Xin’an 42 167 1 5 43 Huaguang 118 472 2 8 120 Cuozhen Zhaoguang 127 507 1 5 128 Xianfeng 131 525 3 11 134 Zhenxing 120 479 1 5 121 Shanwang 25 100 0 0 25 Qiaotouji Feidong Hefei Neighborhood 23 92 0 0 23 County Committee Longquan 18 72 0 0 18 Qiaotouji Qiao’an 30 120 0 0 30 Hongguang 22 88 0 0 22 Taiping 29 116 0 0 29 Guoguang 31 124 0 0 31 Tongshan 49 196 0 0 49 Xinqiao 77 308 1 4 78 Taihe 47 188 0 0 47 s105 Tongyang Qiyang 61 244 0 0 61 Heyu 143 572 2 8 145 Sanfen 73 292 0 0 73 Zhonghan Town 78 312 0 0 78 Neighborhood Juchao Zhonghan Committee Chaohu District Miaoji 79 316 0 0 79 Jianhua 120 480 3 12 123 Guangyan 130 519 2 9 132 Wujia 7290 0 7 Community Jiatang Woniushan 5230 0 5 Community Qiaodong 8 37 0 0 8 Qiaotou 7 27 0 0 7 Total 1,600 6,405 16 67 1,616

Table 2-7 Degrees of Loss of Arable Land of Affected Households Degree of Households loss Existing <10% 10-19% 20-49% 50-79% 80-99% 100% Subtotal arable land <1 mu 0 0 0 0 0 0 0 1-3 mu 51 2 0 0 0 0 53 3-5 mu 408 4 0 0 0 0 4 >5 mu 1,141 10 0 0 0 0 1,151 Total 1,600 16 0 0 0 0 1,616

According to the field survey, the households affected by land acquisition have the following willingness for resettlement: a) Use land compensation fees to improve farmland and purchase machinery to improve productivity, chosen by 191 households, accounting for 11.82% of all households affected by land acquisition; b) Readjust the structure of crop cultivation from one focused on cereal crops with low economic efficiency, such as paddy rice and rape, into one focused on crops with higher economic efficiency, such as vegetables and fruits, chosen by 626 households,

accounting for 38.74%; c) Invest land compensation fees in tertiary industry businesses, such as catering, general merchandise and repair, to increase economic income, chosen by 136 households, accounting for 8.42%; and d) Use land compensation fees for skills learning and training, and to look for job opportunities from the outside, chosen by 865 households, accounting for 53.5%. The restoration plan for the impacts of land acquisition is shown in Error! Reference source not found..

Table 2-8 Restoration plan for Households Affected by Land Acquisition Cash Restoration plan (households) Proportio compensation Restructuring Tertiary Skills n of land Households Farmland (per of crop industry training, loss improvement household) cultivation businesses employment <10% 1,600 1,600 189 624 133 851 10- 19% 16 16 2 2 3 14 20-49% 0 0 0 0 0 0 50-79% 0 0 0 0 0 0 80-89% 0 0 0 0 0 0 100% 0 0 0 0 0 0 Total 1,616 1,616 191 626 136 865 Proportion 11.82% 38.74% 8.42% 53.53%

2.5 Temporary land occupation

Temporary land use for construction means land occupied temporarily during the construction period, including sand and stone yards, borrow pits, blending plants, spoil grounds, and production, living areas and roads occupied temporarily during construction. According to the feasibility study of the subproject, all land occupied temporarily by the subproject is collective land, with a total area of 472.2 mu, affecting 1,712 people out of 428 households, including 212.5 mu of land for borrow pits (45%) and 259.7 mu of other land (55%). In terms of land type, this includes 35 mu of paddy field (7.4%) and 437.2 mu of dry land (92.6%) The average period of temporary occupation is 2 years. The impacts of temporary land occupation are shown in Error! Reference source not found.. In all land occupied temporarily by the subproject, borrow pits will occupy 212.5 mu of land (45%), affecting 736 people out of 181 households. The affected areas are mainly hilly areas, composed mostly of mountain land and non-arable land, and the land occupied temporarily for borrow pits is selected in these areas mainly and will not have any adverse impact on the villagers’ income. In areas where occupation of arable land is unavoidable, low-lying land and derelict land with lower output value and likely to be affected by inland inundation will be selected for borrow pits to minimize the impact on agricultural production. Borrow pits will be located in mountain land or unused land where possible to avoid any adverse impact on rural households. If occupation of arable land is unavoidable, the following principals would be taken: (i) avoid creating unusable land and adverse environmental impacts, (ii) the selection of sites for burrow areas and spoil areas should include consultation with affected villages and should be in accordance with the township/ villages master plans, land use plans and the new countryside construction plans; (iii) the sites should be concentrated and the impact on arable land should be minimized; (iv) where possible, sites should be selected in low-lying land with bad soil quality; and

(v) according to the wills of local people, local geographical conditions and environmental regulations, the deep excavations could be restored as part of the local canal system, fishponds, farmland or landfill through different construction methods.

Table 2-9 Summary of Temporary Land Occupation Land occupied temporarily Other land occupied Temporarily affected Route County for borrow pits (mu) temporarily (mu) population4 City Pile No. Town Village Total code /district Paddy Paddy House Dry land Subtotal Dry land Subtotal People field field -holds Xin’an 1.4 0.0 1.7 1.7 3.1 5 20 Huaguang 0.0 14.7 14.7 0.0 17.9 17.9 32.6 9 36 K0+000 Cuozhen Zhaoguang 0.0 22.3 22.3 0.0 27.2 27.2 49.5 9 36 -K6+850 Xianfeng 0.0 10.8 10.8 0.0 13.1 13.1 23.9 18 72 Zhenxing 0.0 20.5 20.5 0.0 25.1 25.1 45.6 13 52 Shanwang 0.0 2.9 2.9 0.0 3.6 3.6 6.5 8 32 Qiaotouji Feidong Hefei Neighborhood 0.0 3.8 3.8 0.0 4.7 4.7 8.5 12 48 County Committee K6+850 Longquan 0.0 2.0 2.0 0.0 2.4 2.4 4.4 8 32 Qiaotouji -K16+300 Qiao’an 0.5 2.3 2.7 0.6 2.8 3.3 6 13 52 Hongguang 0.0 3.2 3.2 0.0 3.9 3.9 7 15 60 s105 Taiping 0.2 5.0 5.2 0.3 6.1 6.3 11.5 18 72 Guoguang 0.0 3.8 3.8 0.0 4.7 4.7 8.5 12 48 Tongshan 0.0 3.2 3.2 0.0 3.9 3.9 7 9 36 Xinqiao 0.0 7.0 7.0 0.0 8.6 8.6 15.6 16 64 Taihe 0.0 5.3 5.3 0.0 6.4 6.4 11.7 8 32 K16+300 Tongyang Qiyang 2.0 6.1 8.1 2.5 7.4 9.9 1821 84 -K31+100 Heyu 5.6 24.7 30.3 6.9 30.1 37.0 67.3 64 256 Juchao Sanfen 2.9 6.0 9.0 3.6 7.4 10.9 19.9 23 92 Chaohu District Zhonghan Town K31+100 0.5 6.4 6.8 0.6 7.8 8.4 15.2 19 76 Zhonghan Neighborhood -K41+350 Committee Miaoji 0.9 14.3 15.2 1.1 17.5 18.6 33.8 39 156

4 It was estimated by the cadre of affected villages during the surveys.

Land occupied temporarily Other land occupied Temporarily affected Route County for borrow pits (mu) temporarily (mu) population4 City Pile No. Town Village Total code /district Paddy Paddy House Dry land Subtotal Dry land Subtotal People field field -holds Jianhua 2.3 20.9 23.1 2.8 25.5 28.3 51.4 58 232 Guangyan 0.9 9.8 10.7 1.1 11.9 13.0 23.7 27 108 Wujia 0.0 0.2 0.2 0.0 0.2 0.2 0.4 1 4 Community K41+350 Jiatang Woniushan 0.0 0.1 0.1 0.0 0.2 0.2 0.3 1 3 -K50+280 Community Qiaodong 0.0 0.2 0.2 0.0 0.3 0.3 0.5 1 4 Qiaotou 0.0 0.1 0.1 0.0 0.2 0.2 0.3 1 5 Total 15.75 196.74 212.5 19.25 240.46 259.7 472.2 428 1,712

2.6 Demolition of residential houses and impact analysis

All residential houses demolished in the subproject are rural residential houses. 12,607m2 of residential houses will be demolished, including 10,508m2 (90.2%) in the masonry concrete structure, 204m2 (1.8%) in the masonry timber structure and 1,895m2 (15%) in the simple structure, affecting 538 people out of 140 households, of which 151 people out of 39 households are also affected by land acquisition. The residential houses to be demolished in the subproject are shown in Error! Reference source not found..

Table 2-10 Summary of Rural Residential Houses Affected by Demolition Population also Affected House demolition (m2) affected by land population County Town/ acquisition City Pile No. Village /district Xiang Maso Masonry House Populat House Populat nry Simple Subtotal concrete -holds ion -holds ion timber K0+000 Huaguang 296 34 53 383 5 18 1 5 Cuozhen -K6+850 Xianfeng 692 0 123 815 8 31 3 12 Feidong County Shanwang 567 0 143 710 8 33 2 8 Qiaotouji Hefei Hefei Neighborhood 732 68 1,060 1,860 13 52 5 21 K6+850 Committee Qiaotouji -K16+300 Qiao’an 798 34 121 953 11 46 2 8 Hongguang 1,260 34 244 1,538 18 73 7 27 Taiping 1,289 0 0 1,289 12 43 4 12 Tongshan 299 0 98 397 4 16 1 4 Xinqiao 372 34 53 459 7 29 1 3 Taihe 959 0 0 959 10 35 28

Juchao District K16+300 Tongyang Qiyang 1,290 0 0 1,290 17 62 5 19 -K31+100 Chaohu Chaohu Heyu 186 0 0 186 3 10 14 Sanfen 140 0 0 140 2 8 1 3 Zhonghan Town K31+100 1281 0 0 1281 17 61 3 13 Zhonghan Neighborhood -K41+350 Committee Jianhua 347 0 0 347 5 21 1 4 Total 10,508 204 1,895 12,607 140 538 39 151 Proportion 83.4% 1.6% 15.0% 100.0%

Among the households affected by the demolition of residential houses, 41 households (29.3%) have a demolition of 21-50m2; 71 households (50.7%) 51-100m2; 25 households (17.9%) 101-150m2; and 3 households (2.1%) over 151m2. The impacts of the demolition of residential houses are shown in Table 2-11.

Table 2-11 Degrees of Impact of Demolition of Residential Houses Households Town/ City County Pile No. Village 20m2 21- 51- 101- 151m2 Xiang 2 2 2 Subtotal or less 50m 100m 150m or more Feidong County K0+000 Huaguang 0 2 2 1 0 5 Cuozhen -K6+850

Hefei Hefei Xianfeng 0 0 5 2 1 8 Shanwang 0 1 5 2 0 8 K6+850 Qiaotouji Qiaotouji -K16+300 Neighborhood 0 5 6 2 0 13 Committee

Households Town/ City County Pile No. Village 20m2 21- 51- 101- 151m2 Xiang Subtotal or less 50m2 100m2 150m2 or more Qiao’an 0 4 5 2 0 11 Hongguang 0 6 5 6 1 18 Taiping 0 0 7 4 1 12 Tongshan 0 0 2 2 0 4 Xinqiao 0 3 3 1 7 Taihe 0 0 7 3 0 10 Juchao District K16+300 Tongyang Qiyang 0 8 9 0 0 17 -K31+100 Chaohu Chaohu Heyu 0210 0 3 Sanfen 0 0 2 0 0 2 Zhonghan Town K31+100 0 8 9 0 0 17 Zhonghan Neighborhood -K41+350 Committee Jianhua 0 2 3 0 0 5 Total 0 41 71 25 3 140 Proportion 0 29.3% 50.7% 17.9% 2.1% 100.0%

2.7 Affected infrastructure and ground annexes

The subproject affects 7 types of infrastructure and ground annexes, including public toilets and telegraph poles, as shown in Table 2-12.

Table 2-12 Affected Ground Annexes 380V 380V Small Sub-district Public wooden Power Big trees telegraph Drainpipe trees (non /Town/ Village toilets telegraph cables (non fruit) poles fruit) Xiang poles / / / M M / / Xin’an 0 11 0 5 0 75 0 Huaguang 0 4 0 0 4 113 0 Cuozhen Zhaoguang 1 9 1 0 0 23 5 Xianfeng 0 4 0 3 0 14 0 Zhenxing 0 7 0 0 0 24 0 Shanwang 0 4 0 0 0 18 6 Qiaotouji Neighborhood 0 8 0 13 3 46 0 Committee Longquan 0 3 0 0 0 112 0 Qiaotouji Qiao’an 1 4 0 0 0 19 0 Hongguang 0 5 0 0 4 7 8 Taiping 07000 33 0 Guoguang 0 2 0 6 0 3 0 Tongshan 0 6 0 0 0 112 3 Xinqiao 1 5 0 0 2 7 0 Taihe 04040 113 0 Tongyang Qiyang 08100 64 0 Heyu 0 11 0 0 0 49 4 Sanfen 0 7 0 11 0 46 0 Zhonghan Town 06003 49 0 Neighborhood Zhonghan Committee Miaoji 05020 64 0 Jianhua 0 7 0 0 0 175 0

380V 380V Small Sub-district Public wooden Power Big trees telegraph Drainpipe trees (non /Town/ Village toilets telegraph cables (non fruit) poles fruit) Xiang poles / / / M M / / Guangyan 1 4 0 8 0 113 0 Wujia 06002 53 7 Community Jiatang Woniushan 08040 25 0 Community Qiaodong 0 4 0 0 0 73 0 Qiaotou 0 2 1 0 3 74 0 Total 4 151 3 56 21 1,504 33

2.8 Affected population

2.8.1 Summary

The subproject will affect 8,420 people out of 2,106 households in total, affect 6,708 people out of 1,678 households permanently, in which 6,170 people out of 1,538 households are affected by the acquisition of collective land only; 387 people out of 101 households are affected by house demolition only; 151 people out of 39 households are affected by both house demolition and land acquisition; 1,712 people out of 428 households will be affected by temporary land occupation. The population affected by the subproject is shown in Table 2-13.

Table 2-13 Summary of Affected Population 1. -Land -House -Both land 1.1 Affected 2. Temporary land 3. Total Town/ Permanent occupation demolition occupation and City County Village villagers / residents occupation population Xiang impact only only house demolition House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- holds lation holds lation holds lation holds lation holds lation holds lation holds lation Xin’an 43 172 43 172 43 172 0 0 52048192 Huaguang 123 488 123 488 118 470 4 13 1 5 9 36 132 524 Cuozhen Zhaoguang 128 512 128 512 128 512 0 0 9 36 137 548 Xianfeng 136 543 136 543 128 512 5 19 3 12 18 72 154 615

Feidong County County Feidong Zhenxing 121 484 121 484 121 484 0 0 13 52 134 536 Shanwang 29 117 29 117 21 84 6 25 2 8 8 32 37 149 Hefei Hefei Qiaotouji Neighborhood 26 102 26 102 13 50 8 31 5 21 12 48 38 150 Committee Longquan 18 72 18 72 18 72 0 0 83226104 Qiaotouji Qiao’an 37 150 37 150 26 104 9 38 2 8 13 52 50 202 Hongguang 26 107 26 107 8 34 11 46 7 27 15 60 41 167 Taiping 33 135 33 135 21 92 8 31 4 12 18 72 51 207 Guoguang 31 124 31 124 31 124 0 0 12 48 43 172 Tongshan 51 204 51 204 47 188 3 12 1 4 9 36 60 240 Xinqiao 83 335 83 335 76 306 6 261 3 16 64 99 399 Taihe 53 207 53 207 43 172 8 27 2 8 8 32 61 239 Tongyang Qiyang 68 268 68 268 51 206 12 435 19 21 84 89 352 Heyu 146 582 146 582 143 572 2 6 1 4 64 256 210 838 Juchao District Sanfen 73 294 73 294 71 286 1 5 1 3 23 92 96 386 Chaohu Chaohu Zhonghan Town 89 347 89 347 72 286 14 48 3 13 19 76 108 423 Neighborhood Zhonghan Committee Miaoji 79 316 79 316 79 316 0 0 39 156 118 472 Jianhua 126 505 126 505 121 484 4 17 1 4 58 232 184 737 Guangyan 132 528 132 528 132 528 0 0 27 108 159 636 Wujia Woniushan 729 7 297290 0 14833 Community

1. -Land -House -Both land 1.1 Affected 2. Temporary land 3. Total Town/ Permanent occupation demolition occupation and City County Village villagers / residents occupation population Xiang impact only only house demolition House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- House- Popu- holds lation holds lation holds lation holds lation holds lation holds lation holds lation Jiatang 523 5 235230 0 13626 Community Qiaodong 8 37 8 37 8 37 0 0 14941 Qiaotou 7 27 7 27 7 27 0 0 15832 Total 1,678 6,708 1,678 6,708 1,538 6,170 101 387 39 151 428 1,712 2,106 8,420

2.8.2 Affected vulnerable groups

For the purpose of the project, vulnerable groups mean the disabled, Wubao5 （Five Guarantees）, widows, low-income or poor person and ethnic minorities. Based on the survey, the affected population is composed entirely of Han people. The main vulnerable groups affected by the Project are the disabled and low-income persons6. The affected population of the subproject includes 53 households falling into vulnerable groups, with a household population of219, which are affected by house demolition and land acquisition, including 52 people out of 215low-income families, 1 household with a disabled member with a total population of 4.The affected vulnerable groups are shown in Error! Reference source not found..

Table 2-14 Summary of Affected Vulnerable Groups Low-income Disability County Town/ families City Pile No. Village /district Xiang House Populati House Populati –holds on –holds on K0+000 Hefei Hefei Cuozhen Xianfeng 12 49 0 0 Feidong -K6+850 County K6+850 Qiaotouji Tongshan 15 62 0 0 -K16+300 Xinqiao 4 17 1 4 Taihe 5 24 0 0 Chaohu Chaohu K16+300 Tongyang Qiyang 7 29 0 0 Juchao -K31+100 Heyu 3 10 0 0 District Sanfen 3 12 0 0 K41+350 Miaoji 2 8 0 0 Zhonghan -K50+280 Jianhua 1 4 0 0 Total 52 215 1 4

2.8.3 Impacts of the subproject on women Among the affected people surveyed, there are 972 women, accounting for 49.9%. No household composed mainly of single female laborers resulting from bereft of spouse, divorce or abandonment was found among the rural households affected by land acquisition. According to the survey, the affected women enjoy the same legal rights as men, including contracting of arable land, receiving education, family planning, participation in election, etc. Most of the interviewed female laborers think they have the same autonomy in production and operation as men, and can elect to work or do small business freely. Of course, men and women play different roles in family life and production. More women do housework, bring up children, deal with household sidelines (e.g., household cultivation), and work at manual manufacturing plants, while men mainly deal with transport or other heavy work. Generally, the working hours of women are 1.2 times those of men. The impact on the affected women’ income comes mainly from the reduction in agricultural production arising from the acquisition of arable land and the impact on household cultivation arising from house demolition, while the per capita income from

5 “Wubao” refers to the person who not only loses the labor abilities and income, but has no dependent person regulated by laws. The “Wubao” could get the subsidies or assitance from government as follows: 1) Grain and oils, subsidiary food and fuel; 2) Living goods including clothes, quilt etc, and pocket money; 3) Basic residential housing, 4) Medical subsidies; 5) Funeral affairs 6 the annual per capita net income is below 1067 yuan

crop cultivation and stockbreeding is up to 1,057.2 yuan/person, accounting for 19.2% of household income. In terms of education, boys and girls enjoy equal opportunities in receiving education, and as long as children study hard, their parents would do their best to support their school education. According to the survey, women have the same concerns as men: (a) the compensation standards should be based on land output and resettlement cost; and (b) the compensation fees should be paid directly to the affected rural households based on their needs. Women have the following needs that are different from men: (a) women ask for an equal degree of cash compensation and land replacement; (b) women ask for training on crop cultivation, stockbreeding and manual work; and (c) in most households, men play a dominant role in participation, while women also expect to participate in village-level management. The gender analysis is shown in Appendix 3.

3 Social and Economic Profile

3.1 Social and economic profile of affected areas

3.1.1 Social and economic profile of affected cities Hefei City—This city is the capital of Anhui Province, located in central China and between the Yangtze River and the Huaihe River, on the coast of Chaohu Lake, having access to rivers and seas via the Nanfei River, boasting the advantaged geographic location of connecting the eastern and western parts of China, and the Central Plains. Hefei City governs 4 districts (Yaohai, Luyang, Shushan and Baohe) and 3 counties (Feidong, Feixi and Changfeng), and is provided with the municipal-level management authority of the Hefei Hi-tech Industrial Development Zone, Hefei Economic and Technological Development Zone, and the Hefei Xinzhan Integrated Experimental Zone. The city has a total area of 7,266 km2, in which the area of the municipal districts is 596 km2, and urban built-up area is nearly 150 km2. The city has a total population of 4.557 million, in which urban population is 1.5587 million. Hefei is an integrated industrial city that specializes mainly in manufacturing and processing, where pillar industries such as home electric appliances and accessories, chemicals and machinery have come into being. Chaohu City—This city is located in central Anhui, borders the Yangtze River and surrounds Chaohu Lake, one of the top 5 fresh lakes of China. It borders Hefei, Lu’an, Anqing, Chuzhou and Nanjing Cities, and is opposite to Ma’anshan, Wuhu and Tongling Cities across the Yangtze River. Chaohu City governs 4 districts and 1 district, 65 towns, 5 Xiangs and 6 sub-district offices. The city has a total area of 9,423 km2 and a total population of 4.65 million. Chaohu is a famous “land of milk and honey”, abounding with rice, oils, cotton, vegetables, poultry and aquatic products, including the well-known “Three Treasures of Chaohu” (silver fish, white shrimp and crab). Chaohu abounds with resources, where 34 minerals have been found, and there are huge reserves of magnetite, pyrite, alunite, limestone and gypsum. Pillar industries such as building materials, machinery, textile, medicine and food have come into being in Chaohu, and there are a number of backbone enterprises with a certain strength and position in the industry. Feidong County—This county is located between the Yangtze River and the Huaihe River, in the hinterland of central Anhui, at the east gate of Hefei City, close to Nanjing in the east and bordering Chaohu Lake on the south, enjoying advantaged geographic location. The county has a total area of 2,211 km2 and a population of 1.067 million, governs 18 Xiangs/towns and 3 development zones. Feidong abounds with resources and a strong industry. There are great reserves of dolomite, phosphorus ore, marble, iron ore, mica and pottery clay, etc. There are over 30 manufacturing industries, including textile, apparel, chemicals, metallurgy, building materials, machine building, instruments and meters, eider down processing, small home electric appliances and hoisting equipment, with over 400 major industrial products. An industrial system with a full range of industrial categories in which enterprises of different sizes coexist has taken form. Juchao District—This district is located in central Anhui, the south of the Jianghuai Hilly Region, boasting advantaged geographic location and convenient water and land traffic, 60km away from Hefei and the riverside open city Wuhu respectively, run through by the Hefei-Nanjing and Hefei-Chaohu Expressways, and the two trunk railways of Huainan and Hefei-Jiujiang. The Chaohu Port has access to the Yangtze River and the sea along the Yuxi River. The district governs 12 Xiangs/towns and 6 sub-district offices, with a total population of 859,000. The district has a total land area of 2,063 km2, in which Chaohu Lake has a water surface area 463.78 km2 within its jurisdiction.

Juchao is known as a cradle of talents and products, and is a key tourist open zone and development zone, and a famous scenic rehabilitation zone of Anhui Province. The district abounds with over 200 farm and sideline products, such as grains, cotton, linen, vegetables, livestock, poultry and fruits, and has been reputed as a “land of milk and honey”. The district abounds with mineral resources, and produces over 200 industrial products, including cement, anchor chain, fishnet, firecracker and textile.

Table 3-1 Social and Economic Conditions of Affected Cities and Counties Feidong Juchao No. Item Unit Hefei Chaohu County District 1 Land area km2 7,266 9,423 2,211 2,063 Arable area 10,000 mu 323.79 491.84 22 30 10,000 2 Population 455.7 465 108.7 85.9 people 10,000 2.1 Agricultural population 270.79 107.4 95.6 52 people 10,000 2.2 Nonagricultural population 184.91 357.6 13.1 33.9 people 100 million 3 GDP 878.4 344.4 71.8 65 yuan 100 million 3.1 Primary industry 52.7 79.9 18.9 14 yuan 100 million 3.2 Secondary industry 407.6 135.5 29.3 27 yuan 100 million 3.3 Tertiary industry 418.1 129 23.6 24 yuan 3.4 Per capita GDP yuan/person 19,512 8,319 6,605 7,566 Per capita disposable income 4 yuan/person 9,684 9,464 10,900 10,500 of urban residents Per capita net income of rural 5 yuan/person 3,207 3,317 4,692 4,543 residents

3.1.2 Social and economic profile of affected towns Cuozhen Town—This town is located in the south of Feidong County, 25km away from Chaohu and Zhongmiao in the south, 8km away from the urban area of Hefei in the west, and 7km away from Dianfu Town in the north. The town has a land area of 45.7 km2 and an arable area of 5,183 hectares, governing 15 villages and 2 neighborhood committees, with a population of 73,000. Qiaotouji Town—This town is located in the southeast of Feidong County, 18km away from Hefei City, bordering Chaohu on the east, enjoying advantaged geographic location, renowned as the “Mountain Town”. It governs 8 administrative villages and 2 neighborhood committees, with a land area of 64.2 km2, including an arable area of 5,600 hectares and a mountain forest area of 35,000 mu, with a percentage of forest coverage of 47% and a population of 73,000. Tongyang Town—This town is located in the central zone between Hefei and Chaohu Cities, and governs 16 village committees and 1 neighborhood committee, with a total area of 1,149.53 km2, an arable area of 5,071.2 hectares and a population of about 65,000. Zhonghan Town—This town is located in the west suburb of Chaohu, bordering Chaohu Lake on the south, enjoying convenient water and land traffic, and the unique geographic advantage of abutting on the city, the lake and highways. It governs 7 village committees and 1 neighborhood committee. The town has a total area of 67 km2, an arable area of 2,071 hectares and a population of 33,000.

Woniushan Sub-district—This sub-district is located beside the scenic Woniu Mountain and in the central west of the urban area of Chaohu, surrounding Chaohu Lake, with a total area of 55.7 km2, an arable area of 5,163 hectares, governing 11 communities and 3 village committees, with a population of over 75,000. The economic conditions of the affected Xiangs and towns are shown in Appendix 2. 3.1.3 Social and economic profile of affected villages The subproject will affect 13 villages in 2 Xiangs/towns of Hefei City and 13 villages in 3 Xiangs/towns of Chaohu City in total. The 26 affected villages have a per household population of 2.8-4.6, a per capita arable area of 0.5-1.3 mu, and a per capita income of 4,200-5,700 yuan. The traditional crops of the affected villages are mostly paddy rice and rape. The main industries there are machine processing and building material processing, and most male laborers are working outside. The social and economic conditions of the affected villages are shown in Table 3-2.

Table 3-2 Social and economic profile of affected villages Per Per capita Per capita net County Town/ Labor Arable City Village Households Population Men household arable area income of farmers /district Xiang force area (mu) population (mu/person) (yuan/person) Xin’an 880 2,998 1,469 1,502 1,800 3.4 0.6 5,650 Huaguang 980 4,488 2,199 1,878 5,060 4.6 1.1 5,550 Cuozhen Zhaoguang 1,226 3,402 1,667 1,574 3,759.5 2.8 1.1 5,600 Xianfeng 951 3,510 1,720 1,686 1,980 3.7 0.6 5,700 Zhenxing 1,255 4,050 1,985 1,798 3,900 3.2 1 5,650 Shanwang 1,081 3,582 1,755 1,667 2,881.88 3.3 0.8 4,240 Qiaotouji Hefei Feidong Neighborhood 842 3,776 1,850 1786 1,785.6 4.5 0.5 4,459 Committee Longquan 321 1,284 629 640 1,540.8 4 1.2 4,338 Qiaotouji Qiao’an 378 1,512 741 810 1,814.4 4 1.2 4,295 Hongguang 628 2,267 1,111 1,123 1,742.4 3.6 0.8 4,456 Taiping 947 3,493 1,712 1,718 2,948.06 3.7 0.8 4,668 Guoguang 473 1,892 927 1,092 2,270.4 4 1.2 4,580 Tongshan 530 1,794 879 1,013 1,901 3.4 1.1 4,230 Xinqiao 1,144 4,331 2,122 2,064 4,200 3.8 1 4,350 Taihe 1,100 4,060 1,989 2,313 4,965 3.7 1.2 4,500 Tongyang Qiyang 1,084 4,073 1,996 2,344 2,073.6 3.8 0.5 4,300 Juchao Heyu 1,048 4,216 2,066 2,154 4,470 4 1.1 4,200 Chaohu District Sanfen 1,233 4,753 2,329 2,773 5,843.4 3.9 1.2 4,345 Zhonghan Town Neighborhood 802 3,412 1,672 1,868 2,086 4.3 0.6 4,510 Zhonghan Committee Miaoji 821 3,204 1,570 1,700 3,437.9 3.9 1.1 4,750

Per Per capita Per capita net County Town/ Labor Arable City Village Households Population Men household arable area income of farmers /district Xiang force area (mu) population (mu/person) (yuan/person) Jianhua 1,498 5,955 2,918 2,720 7,307 4 1.2 4,350 Guangyan 1,025 3,865 1,894 1,945 4,850 3.8 1.3 4,550 Wujia Community 578 2,312 1,133 1,254 2,312 4 1 4,450 Jiatang 593 2,372 1,162 1,372 2,372 4 1 4,600 Woniushan Community Qiaodong 603 2,412 1,182 1,472.3 2,412 4 1 4,250 Qiaotou 385 1,540 755 863 1,540 4 1 4,350

3.2 Social and economic profile of affected population

3.2.1 Basic economic situation of affected population To learn the basic information of the population affected by land acquisition, the social and economic survey team conducted a sampling survey of the affected households. The subproject affects 426 households in 26 villages of the 5 Xiangs/towns of Cuozhen and Qiaotouji in Feidong County, Hefei City, and Tongyang, Zhonghan and Woniushan in Juchao District, Chaohu City. The sample distribution is shown in Appendix 4. 1) Ethnic and gender analysis The 426 surveyed households have a total population of 1,948, a total labor force of 1,303 and an average household population of 4.57. All the surveyed population is Han people, including 972 women, accounting for 49.9%; women deal mainly with crop cultivation, housework and other productive activities. 2) Age structure Among the 1,948 people out of the 426 surveyed households, 574 are under the age of 18, accounting for 29.5%; 828 aged 18-40, accounting for 42.5%; 475 aged 40-60, accounting for 24.4%; and 68 aged over 60, accounting for 3.5%. See Figure 3-1 for the age structure.

over 60 3%

aged 40-60 under 18 24% 30%

aged 14-40 43%

Figure 3-1 Age Distribution Structure

3) Education Among the 1,948 people out of the 426 surveyed households, 149 are illiterate, accounting for 7.6%; 605 have received primary school education, accounting for 31.1%; 1,065 have received junior secondary school education, accounting for 54.7%; 99 have received senior / technical secondary school education, accounting for 5.1%; 39 have received college or above education, accounting for 2.0%. See Figure 3-2 for education.

college or above 2%

senior or illiterate technical 8% secondary school 5% primary school 31% junior secondary school 54%

Figure 3-2 Education Distribution Structure

4) Housing area Among the 1,948 people out of the 426 surveyed households, total housing area is 70,632 m2, per household housing area is 165.8 m2, and per capita area 36.3 m2. 5) Arable land Among the 1,948 people out of the 426 surveyed households have a total arable area of 2,186.1 mu, 5.13 mu per household or 1.12 mu per capita. The arable land is paddy field and dry land mainly, and net annual income per mu is about 600 yuan. 6) Household properties Among the 1,948 people out of the 426 surveyed households, an average household owns 1.36 color/black-and-white TV sets, 0.44 refrigerators, 2.41 electric fans, 1.23 washing machines, 0.59 air-conditioners, 1.45 fixed telephones and/or mobile phones, 1.51 bicycles, 1.13 motorcycles and 0.33 tractors. In terms of household properties, the affected households largely have a medium standard of living. 7) Household income and expenditure According to the statistical analysis of the 1,948 people out of the 426 surveyed households, per capita annual household income is 5,516.7 yuan/person, in which agricultural income is 816.5 yuan/person, accounting for 14.8%; sideline income 353.1 yuan/person, accounting for 6.4%; operating income 364.1 yuan/person, accounting for 6.6%; income from work 3,806.5 yuan/person, accounting for 69%; and other income 176.5 yuan/person, accounting for 3.2%. The main sources of income of the farmers mainly include crop cultivation and employment, etc., which is consistent with the local industrial structure in which agriculture and industry are paid equal attention to. Women usually do manual work while farming, while men usually work at a factory or outside. Per capita annual household expenditure is 2,450.6 yuan/person, in which household operating expenditure is 532.1 yuan/person, accounting for 21.7%; personal consumption expenditure 714.3 yuan/person, accounting for 29.15%; tax

and charge payment 98 yuan/person, accounting for 4.0%; purchase of productive fixed assets 466.4 yuan/person, accounting for 19.03%; and other consumption 639.8 yuan/person, accounting for 26.11%. The sampling survey results of the income and expenditure of the affected households are shown in Table 3-4.

Table 3-4 Analysis of Household Income and Expenditure Per household Per capita Item Proportion (%) (yuan/household) (yuan/person) Agricultural income 3,102.6 816.5 14.80% Sideline income 1,341.7 353.1 6.40% Operating income 1,383.6 364.1 6.60% Annual Income from work 14,464.8 3,806.5 69% household Other income 670.8 176.5 3.20% income Subtotal 20,963.5 5,516.7 100% Household operating 2,022.0 532.1 21.71% expenditure Purchase of productive 1,772.3 466.4 19.03% fixed assets Net income 17169.2 4518.2 / Personal consumption 2,714.3 714.3 29.15% expenditure Household Payment of taxes and 372.4 98 4.00% expenditure charges Other 2,431.2 639.8 26.11% Subtotal 9,312.3 2,450.6 100.00% Saving 17,169.2 4,518.2

8) Willingness for resettlement While conducting the social and economic survey, the survey team also conducted a survey of willingness for resettlement, the results of which are as follows: Awareness: 91% of the respondents are aware of the subproject, 9.0% are not very clear, and no one is unaware at all. Supportive attitude: 86.5% of the respondents support the subproject, and 13.5% are indifferent. Degree of impact: 45.1% of the respondents think the subproject has no adverse impact; 5.7% think the construction of the subproject will affect traffic; 37.3% think house demolition will cause economic losses to them; and 11.8% think land acquisition may reduce their income. Resettlement for production: 94.6% of the respondents ask for cash compensation without land replacement; 5.5% ask for cash compensation after land reallocation, i.e., compensation fees should be distributed evenly and land reallocated in the collective. The public opinion survey is shown in Table 3-3.

Table 3-3 Public Opinion Survey Proportion of selection by No. Question Answer affected households (%) Total 1 2 3 4 5 Are you clear (1) Clear; (2) Not very clear; 1 about the 91 9.0 0.0 0.0 0.0 100 (3) Unclear subproject? Source of the (1) Newspaper; (2) Meeting; 2 subproject and (3) Neighbor; (4) Social 0.0 25.7 20.8 53.5 0.0 100 land acquisition surveyor Do you approve of 3 (1) Yes; (2) No; (3) Indifferent 86.5 0.0 13.5 0.0 0.0 100 the subproject? 4 To whom do you a) State: (1) Yes; (2) No 100.0 0.0 0.0 0.0 0.0 100

Proportion of selection by No. Question Answer affected households (%) Total 1 2 3 4 5 think the b) Collective: (1) Yes; (2) No 100.0 0.0 0.0 0.0 0.0 100 subproject is of benefit (multiple c) Individual: (1) Yes; (2) No 58.0 42.0 0.0 0.0 0.0 100 choices allowable)? Which benefits do (1) Keeping assets safe; (2) you think the Improving ecological 5 0.0 0.0 91.4 8.6 0.0 100 subproject will environment; (3) Increasing bring to you? income; (4) Other (1) No adverse impact; (2) Impact on traffic conditions What adverse due to construction; (3) impacts do you Possible economic losses due 6 think will the 45.1 5.7 11.8 37.3 0.0 100 to house demolition; (4) subproject have Possible reduction of income on you? due to land acquisition; (5) Other adverse impacts Do you know the compensation and resettlement 7 (1) Yes; (2) Somewhat; (3) No 25.3 65.7 9.0 0.0 0.0 100 policies for land acquisition and house demolition? During land acquisition and house demolition, will you file an 8 (1) Yes; (2) No 91.0 9.0 0.0 0.0 0.0 100 appeal when your lawful rights and interests are infringed upon? (1) Cash compensation without land replacement; (2) Willingness for Land reallocation, with 9 compensation for 94.6 5.4 0.0 0.0 0.0 100 compensation fees going to land acquisition the collective; (3) Other, specify If you expect cash (1) Secondary and tertiary compensation, industries; (2) Work outside; 10 what will you do (3) Industrial restructuring; (4) 8.6 33.9 49.0 8.6 0.0 100 when you receive Purchase of insurance; (5) it? Other, specify What assistance (1) Skills training; (2) do you expect 11 Provision of employment 91.4 8.6 0.0 0.0 0.0 100 after land information; (3) Other, specify acquisition?

4 Legal Framework and Policies

4.1 Laws, regulations and policies applicable to resettlement

The resettlement policies for the subproject are formulated based on ADB policies and the applicable laws, regulations and policies of China mainly, including: 1) ADB policies  Involuntary Resettlement, November 1995  Gender and resettlement, February 2003 2) Laws, regulations and policies of the PRC  Land Management Law of the People's Republic of China (effective from January 1, 1999, amended on August 28, 2004)  Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28) (October 21, 2004)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR Fa [2004] No.238) (November 3, 2004)  Measures for the Administration of Preliminary Examination of the Land Used for Construction Projects (Ministry of Land and Resources Order No.27) (November 1, 2004) 3) Provincial and local policies  Circular of the Anhui Provincial People’s Government on Doing Well in Compensation and Resettlement for Land Acquisition to Protect Farmers’ Lawful Rights and Interests Practically  Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061)  Procedures of Anhui Province on the Implementation of the Land Management Law of the People’s Republic of China (December 1, 2002)  Circular of the Anhui Provincial Finance Department on Farmland Occupation Tax on Highways  Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63)  Interim Procedures of Hefei Municipality on the Endowment Insurance of Farmers Affected by Land Acquisition (He Zheng [2008] No.1)  Interim Procedures of Chaohu Municipality on the Endowment Insurance of Farmers Affected by Land Acquisition (Chao Zheng [2007] No.47).

4.2 ADB policies

The three important elements of the involuntary resettlement policy are (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for restoration to achieve at least the same level of well-being with the project as without it. Some or all of these elements may be present in a project involving involuntary resettlement. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into account the following basic principles: (i) Involuntary resettlement should be avoided whenever feasible. (ii) Where population displacement is unavoidable, it should be minimized by providing viable livelihood options. (iii) Replacing what is lost. If individuals or a community must lose all or part of

their land, means of livelihood, or social support systems, so that a project might proceed, they will be compensated and assisted through replacement of land, housing, infrastructure, resources, income sources, and services, in cash or kind, so that their economic and social circumstances will be at least restored to the pre-project level. All compensation is based on the principle of replacement cost. (iv) Each involuntary resettlement is conceived and executed as part of a development project or program. ADB and executing agencies or project sponsors, during project preparation, assess opportunities for affected people to share project benefits. The affected people need to be provided with sufficient resources and opportunities to reestablish their livelihoods and homes as soon as possible, with time-bound action in coordination with the civil works. (v) The affected people are to be fully informed and closely consulted. Affected people are to be consulted on compensation and/or resettlement options, including relocation sites, and socioeconomic restoration. Pertinent resettlement information is to be disclosed to the affected people at key points, and specific opportunities provided for them to participate in choosing, planning, and implementation options. Grievance redress mechanisms for affected people are to be established. Where adversely affected people are particularly vulnerable groups, resettlement planning decisions will be preceded by a social preparation phase to enhance their participation in negotiation, planning, and implementation. (vi) Social and cultural institutions. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. (vii) No formal title. Indigenous groups, ethnic minorities, pastoralists, people who claim for such land without formal legal rights, and others, who may have usufruct or customary rights to affected land or other resources, often have no formal legal title to their lands. The absence of a formal legal title to land is not a bar to ADB policy entitlements. (viii) Identification. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cutoff date, preferably at the project identification stage, to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. (ix) The Poorest. Particular attention must be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly indigenous peoples. Appropriate assistance must be provided to help them improve their socio-economic status. (x) The full resettlement costs are to be included in the presentation of project costs and benefits. This includes costs of compensation, relocation and restoration, social preparation and livelihood programs as well as the incremental benefits over the without-project situation (which are included in the presentation of project costs and benefits). The budget also includes costs for planning, management, supervision, monitoring and evaluation, land taxes, land fees, and physical and price contingencies. Where loans include subprojects, components or investments prepared only after project approval and loans through financial intermediaries that are likely to cause involuntary resettlement, sufficient contingency allowance must be allocated for resettlement prior to approval of the loan. Similarly, resettlement plans should also reflect the timeframe for resettlement planning and implementation. (xi) Eligible costs of compensation. Relocation and restoration may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely

availability of the required resources and to ensure compliance with involuntary resettlement procedures during implementation.

4.3 Laws, regulations and policies of the PRC

For the Project, the Land Administration Law of the People’s Republic of China is the major legal basis. Ministry of Land and Resources and Anhui Province have also promulgated some related regulations and policies. The relevant items on resettlement are shown in Table 4-1. The Decision of the State Council on Deepening Reform and Strengthening Land Administration (Ref. GF [2004]28) was issued in Oct. 2004 and sets out (i) the principles of land acquisition compensation and resettlement compensation, (ii) the compensation standards, (iii) land acquisition procedures, and (iv) monitoring system. Correspondingly, Ministry of Land and Resources issued Guidelines for Strengthening Land Acquisition Compensation and Relocation System (Ref. No. [2004] 238). These documents are as shown in Table 4-2. These documents are the key PRC laws and regulations for this Project.

Table 4-1 Abstract of Land Management Law and Relevant Policies Item Key points Index The People's Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people Land and ownerships by collectives, of land. Land Management Law, Article 2 ownership The State introduces the system of compensated use of land owned by the State except the land has been allocated for use by the State according to law. Any unit or individual that need land for construction purposes should apply for the use of land owned by the State according to law; …… Land Management Law, Articles Whereas occupation of land for construction purposes involves the conversion of agricultural land into land 43 and 44 Application for for construction purposes, the examination and approval procedures in this regard shall be required. …… land used for People's governments at all levels shall strengthen the administration of plans for land use and exercise Procedures of Anhui Province on construction control of the aggregate land for construction purposes. If no planning quota for use of farmland for other the Implementation of the Land purposes is available or such quota is exceeded, no additional land for construction shall be approved. Management Law of the People’s Saved planning quotas for use of farmland for other purposes may be carried over to the next year after Republic of China (June 26, approval. 2004), Article 13 The acquisition of basic farmland land exceeding 35 hectares outside the basic farmland, and other land exceeding 70 hectares shall be approved by the State Council. Acquisition of land other than prescribed in the preceding paragraph shall be approved by the people's Land Management Law, Article 45 governments of provinces, autonomous regions and municipalities and submitted to the State Council for the Land record. acquisition The land administrative authorities of a municipal or county people’s government shall draft a plan for use of Procedures of Anhui Province on authority farmland for other purposes, a farmland replenishment plan, a land acquisition plan and a land supply plan to the Implementation of the Land the municipal or county people’s government for approval, and escalate them to people’s governments with Management Law of the People’s approval authority for approval. In case of acquisition of woodland, the consent of the woodland Republic of China (June 26, administrative authorities shall be obtained in advance. 2004), Article 33 46 For the acquisition of land by the State the local people's governments at and above the county level shall make an announcement and organize the implementation after the approval according to the legal Land procedures. acquisition After the plan for land compensation and resettlement fees is finalized, related local people's governments Land Management Law, Articles declaration shall make an announcement and hear the opinions of the rural collective economic organizations and 46, 48 and 49 system peasants whose land has been acquired. Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land acquired and accept their supervision.

Item Key points Index In acquiring land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural Land Management Law, Article 47 population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. However, the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition. Land compensation standards for acquisition of land other than arable land: for fishponds, etc., 6 times the average output value of the preceding 3 years; for orchards, etc., 7 times the average output value of the preceding 3 years; in case of no harvest, 6 times the average output value of similar land of the preceding 3 Compensation years; for reclaimed land which has been cultivated for less than 3 years, 3-4 times the average output value standards for of the arable land of the same village (team) of the preceding 3 years; for reclaimed land which has been land cultivated for 3 years or more, the same as arable land; land used for construction collectively owned by acquisition farmers, 4-5 times the average output value of the arable land of the same village (team) of the preceding 3 years; for other land, 2-3 times the average output value of the arable land of the same village (team) of the Procedures of Anhui Province on preceding 3 years. The compensation standards for woodland shall be governed by the applicable laws and the Implementation of the Land regulations. Resettlement subsidy standard for every farmer to be resettled: for acquisition of farmland, 3-4 Management Law of the People’s times the average output value of the preceding 3 years; for land used for construction collectively owned by Republic of China (June 26, farmers, 2-3 times the average output value of the arable land of the same village (team) of the preceding 3 2004), Articles 34, 35, 36 and 37 years; for barren hills and slopes, no resettlement subsidy. If the farmers to be resettled are unable to maintain their former standard of living, with the approval of the provincial people’s government, the resettlement subsidy may be increased. However, the sum of the land compensation and the resettlement subsidy shall not exceed the following limit: (1) In case of acquisition of arable land, 30 times the average output value of the preceding 3 years of the acquired arable land; …… young crops on the acquired arable land shall be compensated for at the output value of crops of that season; for perennial crops shall be compensated for at their annual output value; no compensation shall be granted if there is no young crop. Users who use the land temporarily should use the land according to the purposes agreed upon in the contract for the temporary use of land and should not build permanent structures. The term for the temporary Land Management Law, Article 57 Temporary use of land shall not usually exceed two years. land use If state land or land collectively owned by farmers is to be used temporarily for project construction or Procedures of Anhui Province on geologic examination, such use shall be approved by the land administrative authorities of the local the Implementation of the Land

Item Key points Index municipal or county people’s government; temporary land use within the urban planning area shall be Management Law of the People’s approved by the urban planning administrative authorities before submission for approval. Republic of China (June 26, 2004), Article 45

Table 4-2 Main Provisions of Guo Fa [2004] No.28 and MLR Fa [2004] No.238 and Application Guo Fa [2004] No.28—Improvement of compensation and resettlement systems for land acquisition MLR Fa [2004] No.238 County-level and above local people’s governments shall take practical measures so that the standard of living of farmers affected by land acquisition is not reduced by land acquisition. Land compensation, resettlement subsidy and compensation for ground annexes and crops shall be paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the prevailing laws and regulations are insufficient to maintain the former standard of living of the farmers Article 12 Fixation of uniform annual output affected by land acquisition or to pay the social security expenses of farmers who lose all land due to land Improvement value standards acquisition, people’s governments of provinces, autonomous regions and municipalities directly under the of measures Determination of uniform annual Central Government shall approve an increased resettlement subsidy. If the sum of the land for output value multiples compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to compensation Fixation of integrated land prices for maintain the former standard of living of the farmers affected by land acquisition, local people’s for land land acquisition areas governments may pay a subsidy from the income from compensated use of state land. acquisition Distribution of land compensation people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall fix and publish the uniform annual output value standards or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. County-level and above local people’s governments shall take specific measures to guarantee long-term livelihoods of farmers affected by land acquisition. Article 13 For projects with a stable income, farmers may become a shareholder using the right to use of land used Proper for construction approved pursuant to law. Resettlement for agricultural resettlement of Within the urban planning area, local people’s governments shall bring farmers who lose all land due to production farmers land acquisition into the urban employment system, and establish a social security system; out of the Resettlement by reemployment affected by urban planning area, in acquiring land collectively owned by farmers, local people’s governments shall Resettlement by dividend distribution land reserve necessary arable land or arrange appropriate jobs for farmers affected by land acquisition within Non-local resettlement acquisition the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social

Guo Fa [2004] No.28—Improvement of compensation and resettlement systems for land acquisition MLR Fa [2004] No.238 security systems for farmers affected by land acquisition as soon as possible. During land acquisition, the ownership of collective land of farmers and the right to contracted management of farmers’ land shall be maintained. Before land acquisition is submitted for approval pursuant to law, the use, location, compensation standard and mode of resettlement of the land to be acquired shall be notified to farmers affected by land Disclosure of information on land Article 14 acquisition; the survey results of the present situation of the land to be acquired shall be confirmed by acquisition Improvement rural collective economic organizations and farmers to be affected by land acquisition; if necessary, the Confirmation of land acquisition of land land and resources authorities shall organize a hearing in accordance with the applicable provisions. The survey results acquisition materials for notification to and confirmation by the farmers affected by land acquisition shall be taken as Organization of land acquisition procedures requisite materials for approval for land acquisition. hearing Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of farmers affected by land acquisition and land users. Approved matters of land acquisition shall be disclosed unless in special cases. If the compensation and resettlement for land acquisition has not been implemented, the acquired land shall not be used forcibly. Article 15 Disclosure of approval items of land People’s governments of provinces, autonomous regions and municipalities directly under the Central Strengthening acquisition Government shall formulate the procedures for the distribution of the land compensation within rural Supervision Payment of compensation and collective economic organizations on the principle that the land compensation is used for rural over the resettlement expenses for land households affected by land acquisition mainly. implementation acquisition Rural collective economic organizations affected by land acquisition shall disclose the receipt, of land Post-approval supervision and disbursement and allocation of land compensation fees to their members and accept supervision. The acquisition inspection of land acquisition agricultural and civil affairs authorities shall strengthen the supervision over the allocation and use of land compensation fees within rural collective economic organizations.

4.4 Main differences between ADB policies and laws of the PRC

Compensation for houses  Difference: ADB policies require compensation standards for replacement costs. Laws of the PRC think depreciation is reasonable, and the compensation standard for an old house should be lower than that for a new house of the same structure.  Solution: Compensation standards are based on replacement costs in all ADB financed products. Compensation for land  Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on average annual output value, but may be unrelated to the cost of income restoration.  Solution: The early-stage solution is to provide replacement land, which is hardly possible. Cash compensation is the preferred choice of most people, though they cannot guarantee the reasonable use of these compensation fees. Therefore, ADB needs to further technical support to monitor the income of seriously affected households, especially those of vulnerable groups, and assistance should be provided by local governments to assist those who need support. Compensation for resettlement of vulnerable groups  Difference: ADB policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with pauperization. Chinese provisions do not require social analysis, and compensation is based only on the quantity of loss.  Solution: Special funds are available to assist the vulnerable groups, who will be identified during the detailed survey. All measures have been specified in the Resettlement Plan. Consultation and publication  Difference: ADB policies require the affected people are aware of all relevant information, and consulted with as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, the affected people do not play a strong role in project decision-making, and the disclosure period is usually too short.  Solution: Consultation has begun at the early stage (before and during technical assistance). APCD agrees to disclose the Resettlement Plan to the affected people as required by ADB. Lack of legal title  Difference: ADB policies require all demolished houses, whether lawful or unlawful, shall be compensated for at the same standards. According to Chinese laws, people without local registered residence may not be entitled to the same compensation as local people. In addition, the prevailing Chinese laws stipulate that no compensation shall be provided for the acquisition of land and houses of unlawful owners.  Solution: For ADB financed project, all affected people, whether lawful or unlawful, whether having ownership or right to use, will be protected. The same compensation standards will apply as required by ADB. Resettlement monitoring, evaluation and reporting  Difference: ADB requires internal and external resettlement monitoring. However, there is no such requirement in Chinese laws, expect for reservoir

projects.  Solution: Internal and external resettlement monitoring systems have been established for all ADB financed products, and have been included in the Resettlement Plan. The requirements for internal and external reporting are specified in the Resettlement Plan.

4.5 Principles for compensation of the subproject

The principles for compensation and entitlement of the subproject have been formulated in accordance with the laws, regulations and policies of the Chinese government and ADB, with the aim of ensuring that displaced persons can obtain sufficient compensation and assistance measures so that their production and livelihoods are at least restored to pre-displacement levels. The principles for resettlement of the subproject are shown in Table 4-3.

Table 4-3 Principles for Resettlement of the Subproject Principles 1 Involuntary resettlement should be avoided where feasible. The affected people are granted compensation and rights that can at least 2 maintain or even improve their livelihoods in the absence of the project. The affected people are given compensation and assistance in resettlement 3 whether legal title is available or not. If the land available to everyone is insufficient to maintain his/her livelihood, 4 replacement in cash or in kind and other income-generating activities are provided for the lost land. The affected people fully understand their entitlements, the method and standard 5 of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan. No land should be acquired before the affected people are satisfied with the 6 compensation and resettlement (plan). People should not be displaced until the allocation of a housing plot has been agreed upon. The executing agency and an independent agency / third party should monitor 7 the compensation, relocation and resettlement operations. The vulnerable groups (including women) are provided special assistance or 8 treatment so that they lead a better life, and all affected people should have an opportunity to benefit from the project.. The Resettlement Plan is consistent with the master plans of the affected 9 counties and towns. 10 The resettlement expenses are sufficient to cover all affected aspects.

4.6 Cut-off date of compensation

The cut-off date for determining eligibility for compensation is June 30, 2009. The notification of cut-off date will be sent after the FSR is approved. Newly reclaimed arable land, newly built houses or settlement in the affected areas of the affected people will not be included in the scope of compensation or subsidy after the cut-off date. Any house built or tree planted for extra compensation only will not be included.

4.7 Determination of compensation standards for resettlement impacts of the subproject

4.7.1 Acquisition of collective land According to the Land Management Law of the People’s Republic of China, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the policies and regulations of Anhui Province on the implementation of the Land Management Law of the People’s Republic of China, the compensation fees for the acquisition of arable land include land compensation, resettlement subsidy and crop compensation. The compensation standards for the acquisition of rural collective land are shown in Table 4-4. The compensation rate will be adjusted accordingly if the related policies of Anhui Province are changed; any such changes will be presented in updated RP.

Table 4-4 Compensation Multiples and Standards for Collective Land Acquisition Annual Multiple Compensation standard (yuan/mu) County Type of output Land Resettlement Crop Land Resettlement Crop /district land value compensation subsidy compensation Subtotal compensation subsidy compensation Subtotal (yuan/mu) Paddy field 1,125 10 6 / 16 11,250 6,750 500 18,500 Dry Feidong land 1,125 10 6 / 16 11,250 6,750 500 18,500 Housing site 750 10 6 / 16 7,500 4,500 0 12,000 Other 750 10 6 / 16 7,500 4,500 0 12,000 Paddy field 1,125 10 6 / 16 11,250 6,750 500 18,500 Dry Juchao land 1,125 10 6 / 16 11,250 6,750 500 18,500 Housing site 750 10 6 / 16 7,500 4,500 0 12,000 Other 750 10 6 / 16 7,500 4,500 0 12,000 Village Receiver collective Individuals Individuals

4.7.2 Compensation for temporary land occupation According to the provisions of the state and Anhui Province on temporary land occupation, land temporarily occupied will be compensated for at the annual output value of the land for the period of impact.

Compensation fees for temporary land occupation include compensation for young crops/ground annexes, and land reclamation fee. Arable land occupied temporarily for borrow pits will be compensated for at a time at 12,000 yuan/mu, while other temporarily occupied land at 4,000 yuan/mu· year. For land occupied temporarily, a land reclamation fee of 4,000 yuan/mu will also be paid. To reduce the impact of land acquisition on young crops, the subproject will be constructed after harvest or before seeding as the case may be. According to the construction design, the period of temporary land occupation is 2 years. The compensation standards for temporary land occupation are shown in Table 4-5.

Table 4-5 Compensation Standards for Temporary Land Occupation Land compensation fee Land occupied Other occupied Reclamation fee County Land type temporarily for temporarily (yuan/mu) borrow pits (yuan/mu· year) (yuan/mu) Feidong Arable land 12,000 4,000 4,000 Juchao Arable land 12,000 4,000 4,000

4.7.3 Compensation standards for house demolition The compensation standards for houses of different types shall be determined according to the pertinent provisions by reference to the actual prices of the main types of the affected houses and the compensation standards for similar past projects, as shown in Table 4-6. A housing plot will be allocated prior to house demolition; meanwhile the location of new residential plots will be decided by villages and APs.

Table 4-6 Compensation Standards for Rural Residential Houses and Annexes Feidong Juchao Category Structural type Unit Unit price Unit price Remarks (yuan) (yuan) Masonry 2 m 410 410 House concrete 2 compensation Masonry timber m 260 260 Simple m2 80 80 Moving subsidy yuan/person 500 500 Based on the area Living Other of the main house allowance for yuan/m2· compensation 2 2 demolished, not transition month more than 18 period months

4.7.4 Compensation for annexes and infrastructure The compensation standards for annexes and infrastructure affected by the subproject shall be determined on the replacement cost principle, as shown in Table 4-7.

Table 4-7 Compensation Standards for Annexes and Infrastructure Item Unit Compensation standard (yuan/unit) 180 10KV telegraph poles yuan/piece 1,500 380V telegraph poles yuan/piece 100 Tombs yuan/piece 300 Big trees (non fruit) yuan/piece 10 Small trees (non fruit) yuan/piece 6 Scattered fruit trees yuan/piece 30

4.7.5 Standards for other costs The standards for other costs are shown in Table 4-8.

Table 4-8 Tax Standards for Resettlement of the Subproject No. Item Charging standard Basis Farmland 1 2yuan/m2 Wan Nong Cun [2008] No.367 occupation tax Feidong: 7 yuan/m2 Farmland 2 Juchao District: 8 yuan/m2 Wan Cai Zong [2001] No.1061 reclamation fee Juchao District: 24 yuan/m2 Land acquisition 4% of total land acquisition 3 management fee7 expenses Surveying, design 3% of total land acquisition 4 and research expenses expenses Administrative 5% of total land acquisition 5 expenses expenses Technical training 3% of total land acquisition 6 expenses expenses External monitoring 4% of total land acquisition 7 and evaluation expenses expenses 10% of the total amount of land acquisition expenses, design fees, Contingency 8 implementation management expenses fees, training and monitoring expenses

4.7.6 Vulnerable groups In addition to the above compensation policy for land acquisition, the vulnerable groups affected by the subproject are also entitled to some other preferential policies: (1) Vocational training will be given to the labor force in the households of vulnerable groups, and employment information and guidance will also be provided to increase their job opportunities; (2) During the construction of the subproject, the labor force in the households of vulnerable groups will be given priority to in the recruitment for unskilled jobs; (3) A special supporting fund will be set up in cooperation with the labor and social security authorities of Hefei and Chaohu Municipalities to provide assistance at 1% of the resettlement expenses of the subproject. (4) When possible, replacement land should be arranged for vulnerable groups in the priority, if that is the desire of the AP. The detailed entitlements are shown in Table 4-9.

4.7.7 Special measures for women In addition to the standard compensation policy for land acquisition, the women are also entitled the following special measures: 1) Opportunities of prior employment are available, 30% of the unskilled job opportunities created by the Project will be provided to women. 2) The priority in receiving free technical training is available. 6,500 persons will be trained, with not less than 3,250 females (50%).

7 70% of this money will be used to upgrade or reclaim marginal farmland in rural areas of Anhui, which will benefit poor people; this is the government’s uniform plan.

3) The affected women will be provided relevant information during resettlement, and will be encouraged to participate in consultation and resettlement activities. During the resettlement implementation, focus group discussions with affected women will be managed by the AHAB and local government officials to explain the regulations and improve women’s awareness. 4) Compensation agreement must be signed by both spouses. See details in Appendix 3 - Gender analysis of women during resettlement.

4.8 Entitlement matrix

The entitlement matrix is established in accordance with the applicable policies in this chapter, as shown in Table 4-9.

Table 4-9 Entitlement matrix Type of impact Degree of impact Eligibility Compensation and resettlement policy Implementation issues 1) Land compensation, resettlement subsidy and Village meetings to be responsible 26 villages and compensation for collective properties will be paid directly to for deciding on the allocation of communities in 5 towns funds, the redistribution of land 1,417.8 mu of the village collective economic organization or village of Feidong County and and investment in income collective land, committee (see the table 4-4). Juchao District generating activities such as including 110 mu of improved cultivation techniques/ Permanent land paddy field, 869.1 irrigation/ small business acquisition mu of dry land, development/ training. 17.9 mu of housing 1) Land compensation or land reallocation will be provided.

sites, 420.8 mu of 6,472 people of 1,616 2) Resettlement subsidy will be paid. other land households 3) Ground annexes and crop compensation will belong to Higher level authorities to their respective owners. approve and monitor village level proposals and, if required to facilitate training programs. 1) For temporary land occupation for borrow pits, cash 472.2 mu in total, compensation will be granted at a time; other temporarily in which borrow 1,712 people of 428 occupied land will be compensated for based on the period pits will occupy Notified in advance and paid households in 26 villages of occupation and the amount of loss, including crop Temporary land 212.5 mu; in terms accordingly. Restoration of land and communities in 5 compensation and reclamation fee, with a maximum occupation of land type, 35 mu will be monitored by the farmers towns of Feidong County occupation period of 2 years (see the table 4-5). of paddy field and and local land bureaus. and Juchao District 2) After the end of land occupation, the land will be reinstated 437.2 mu of dry to the original condition, and appropriate economic land compensation will be granted. 12,607 m2 of houses will be demolished, 1) House compensation: calculated at replacement costs of including 10,508 538 people of 140 different structural types and quality standards (see the table Demolition of m2 in the masonry households in 15 villages 4-6). Village and APs to decide on residential concrete structure, and communities in 4 2) The affected people will receive a moving subsidy and a location of new residential plots. houses 204 m2 in the towns of Feidong County transition fee. masonry timber and Juchao District 3) A housing plot will be allocated prior to house demolition. structure, and 4) House registration fees are waived. 1,895 m2 in the simple structure

Type of impact Degree of impact Eligibility Compensation and resettlement policy Implementation issues 1) Opportunities of prior employment are available, and 30% of women will have unskilled job opportunities. 2) The priority in receiving free technical training is available. 6,500 persons will be trained, with not less than 3,250 females (50%). Women's federation will arrange 3) The affected people can have access to relevant awareness education All women in affected Women / information during resettlement, and participate in households consultation and resettlement. During the resettlement Equal pay for equal work for men implementation, focus group discussions with affected and women, no child labor women will be managed by the AHAB and local government officials to explain the regulations and improve women’s awareness. 4)Compensation agreement must be signed by both spouses 1) Special allowances provided for the disabled person. 1) Disabled 4 people of 1 household 2) Priority of training and employment to labor force in these persons with one disabled person households. The households will be 1) Skill training will be provided to 2 family members, at rechecked during DMS and 2) Low-income or least one by female. closely monitored until poor households 215 people of 52 2) Priority employment (such as outside jobs or work for the sustainable restoration is (under the national household Project construction) will also be provided. achieved Vulnerable poverty line) 3) Provided pension by local government groups 1) Skill training will be provided to 2 family members, at 1% of total basic resettlement cost least one by female. And Priority employment (such as has been budgeted for these 151 people of 39 3) Seriously outside jobs or work for the Project construction) will also be special measures, and this amount households both affected affected provided. could be increased using by land acquisition and households 2) When possible, replacement land should be arranged as contingencies. house demolition a priority if desired by the affected household.

1) The affected special facilities will be compensated for by the implementing agencies to property owners, and then Special facilities 7 types, such as restored by property owners, or restored by the and ground telegraph poles, Property owners implementing agencies according to the former standard and annexes trees size (see the table 4-7). 2) The compensation for ground annexes shall be calculated

Type of impact Degree of impact Eligibility Compensation and resettlement policy Implementation issues in accordance with the pertinent provisions.

Complaints and Free of charge. All costs reasonably incurred will be / All affected people appeals disbursed from the contingency expenses of the subproject.

5 Resettlement and Income Restoration

5.1 Purpose of resettlement

The purpose of resettlement of the subproject is to design a resettlement and restoration action plan for the people affected by the subproject, so that they benefit from the subproject, and their standard of living is improved or at least restored after the completion of the subproject.

5.2 Resettlement and restoration plans for affected villages

5.2.1 Introduction of resettlement and restoration plans for affected villages The main impact of the subproject is permanent land occupation mainly. The permanent acquisition of collective land involves 26 villages in 5 Xiangs/towns of one county and one district of Hefei and Chaohu Cities; 1,417.8 mu of collective land will be acquired, including 110 mu of paddy field, 869.1 mu of dry land, 2 mu of vegetable plots, 17.9 mu of housing sites and 420.8 mu of other land. Since the subproject involves road reconstruction in a linear distribution, most of the people affected by land acquisition will lose part of their land only, with a degree of impact of less than 5%. Therefore, land acquisition has little impact on the agricultural production and income of the rural households (see Section 2.4.2 for the impact analysis of land acquisition). According to the sampling survey of the willingness for resettlement of 426 households, all affected households require cash compensation, and will use the compensation fees for business, crop cultivation, stockbreeding and skills learning mainly. In our field survey, almost all affected rural households welcome the subproject; the affected households think the subproject can improve the traffic conditions and make their production and life more convenient. All affected households require cash compensation for land acquisition, because this method is simple to operate. The affected rural households can use the compensation fees for production and livelihood restoration freely. The construction and land acquisition of the subproject will affect the villages to varying degrees. Therefore, the restoration plan is based on the degree of impact, the availability of the remaining land resources and the willingness of the affected people. Through adequate consultation with the village committee and the affected households during the social and economic survey, different economic restoration options have been defined. As discussed above, for most villager teams, the impact of land acquisition is relatively low, and the degree of impact is even. After the land is acquired, the affected people still have a certain amount of land, so most of them prefer cash compensation. For the affected people, this method will ensure that all compensation and rights get to their hands fully and timely. 5.2.2 General strategy of restoration measures for permanent land acquisition The subproject involves permanent land occupation of 26 villages. The livelihood restoration measures for the displaced persons mainly include: a) Direct cash compensation: Determine the compensation standards for land acquisition and the amount of arable land lost in strict accordance with the applicable state and local policies, and pay compensation fees timely to the affected households directly. The compensation fees received by the affected households can be used to grow cash crops, develop household stockbreeding and to deal with nonagricultural

production activities. b) Improvement of agricultural production conditions: The village collectives will raise funds and use some of the compensation fees for the acquisition of the collective land for infrastructure construction in order to improve agricultural production conditions, increase the output of crops, increase farmers’ income indirectly and improve their standard of living, such as improvement of pumped wells, pump stations, pipelines and other irrigation facilities for farmland, improvement of drinking water facilities for villagers to solve their difficulty in domestic water supply, building village roads, and subsidizing widows. c) Agricultural restructuring: The villages will adjust their crop cultivation and stockbreeding structure using their geographic location and market conditions to increase agricultural income. For example, the villages can do this based on their history and practical situation; Cuozhen Town can develop lotus root cultivation, Tongyang Town can develop greenhouse and strawberry cultivation, etc. d) Labor transfer: The government may take some relevant measures to support the development of some individual enterprises, such as farm machinery and anchor chain manufacturing enterprises and other labor-intensive enterprises, and create more job opportunities. e) Endowment insurance of farmers affected by land acquisition: Eligible farmers affected by land acquisition8 may affect the endowment insurance of farmers affected by land acquisition voluntarily, as shown in Appendix 5. In the meantime, during the construction of the subproject, the implementing agencies will take some assistance and supporting measures, including: a) During construction, the affected people will be arranged for labor service with priority, which will bring cash income to the affected people. b) All labor export projects within the affected county will give priority to the affected people for jobs in local industry or labor export (at-home work for industry). c) During the whole production restoration process, technical training can be organized for the affected people, such as training on the cultivation of cash crops and stockbreeding. Technicians from the agricultural and labor and social security authorities will be invited to give training on agriculture and cultivation in the affected areas, so that every affected rural household can receive at least one session of agricultural or nonagricultural technical training. These measures will serve to improve the quality and output of crops, increase the economic income of the affected people, and restore their livelihoods. 5.2.3 General strategy and measures for demolition of residential houses The subproject involves house demolition of 15 villages. Through preliminary survey and consultation, the displaced households will be resettled in the following ways: a) Property right exchange: The government will build resettlement houses, and the displaced households will exchange property rights according to the applicable standard, which is 25m2/person. The displaced households will also pay a structural price difference. The portion of the demolished area in

8 Generally, this means affected agricultural population not having the basic living and production conditions or with a per capita arable area of less than 0.3 mu after land acquisition. For farmers affected by land acquisition aged 60 or more for men or 55 or more for women, the pension received by everyone per month shall not be less than 80 yuan in principle paid by government; APs may contribute more voluntarily to increase their pension payments.

excess of the area of the resettlement house will be subject to cash compensation. This option is chosen by 13 households (9%). b) Self-demolition and self-building: The affected households will purchase a housing site at a suitable location with the compensation for housing site for self-demolition and self-building, chosen by 32 households (23%); or the village collective will plan housing sites for self-demolition and self-building on waste or unused land in the village, chosen by 95 households (68%). The willingness for demolition of residential houses and resettlement of rural residents is shown in Table 5-1.

Table 5-1 Willingness for Demolition of Residential Houses and Resettlement of Rural Residents Number of households Self-demolition and self-building Town/ Property a) Selection of a b) Unified planning City County Pile No. Village Xiang right housing site for of housing sites for Subtotal self-demolition and self-demolition and exchange self-building after self-building after cash compensation cash compensation K0+000 Huaguang 5 0 0 5 Cuozhen -K6+850 Xianfeng 8 0 0 8 Shanwang 0 2 6 8 Feidong Qiaotouji Hefei Hefei Neighborhood 0 1 12 13 K6+850 Committee Qiaotouji -K16+300 Qiao’an 0 2 9 11 Hongguang 0 4 14 18 Taiping 0 3 9 12 Tongshan 0 0 4 4 Xinqiao 0 4 3 7 Taihe 0 5 5 10 Juchao District K16+300 Tongyang Qiyang 0 2 15 17 -K31+100 Chaohu Chaohu Heyu 0 3 0 3 Sanfen 0 1 1 2 Zhonghan Town K31+100 0 4 13 17 Zhonghan Neighborhood -K41+350 Committee Jianhua 0 1 4 5 Total 13 32 95 140 Proportion 9% 23% 68% 100%

5.2.4 Resettlement and restoration plans for key villages In order to further make clear the impacts of the subproject and improve the effectiveness of resettlement, the relevant traffic authorities, town governments, administrative villages and villagers have been gathered to hold discussions based on the information provided by the feasibility study report. The impacts of the subproject, land acquisition and house demolition, and the next-step measures for economic restoration were discussed. Through the above impact analysis of land acquisition, all the villages affected by the subproject have a low degree of impact of land acquisition (less than 5%). Some villages are also affected by house demolition, so pertinent resettlement and restoration plans have been developed for the 7 relatively seriously affected villages.

1. Feidong County Cuozhen A. Xianfeng Village Xiafeng Village has 3,510 people out of 951 households, including 1,720 men and 1,686 laborers, an arable area of 1,980 mu, and a per capita arable area of 0.6 mu. The main crops are paddy rice and rape. The per capita net income of farmers is 5,700 yuan, in which agricultural income accounts for about 15%. Xianfeng Village is an important pilot point of labor service export, where a certain amount of labor would be exported to Singapore or third world countries annually. The villagers are known for building crafts and mostly do building works outside. The proportion of villagers engaged in labor service export and outside employment is about 1/3, and employment income accounts for over 80% of gross income. The subproject will acquire 94.7 mu of arable land of Xiafeng Village, accounting for 4.8% of total arable area, affecting 538 people out of 134 households, accounting for 14.1% of the total number of households and 15.3% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 79,992.5 yuan, 597 yuan per household and 149.2 yuan. The subproject has little impact of land acquisition. After land acquisition, the per capita arable area of this village will still be 0.54 mu. 815 m2 of residential houses will be demolished, affecting 31 people out of 8 households. According to the survey, the affected households ask for cash compensation other than land reallocation. Through consultation, the land compensation fees will be paid directly to the affected households. The possible resettlement and restoration measures for Xianfeng Village are as follows:  Measures for restoration of production income: a) Agricultural restructuring and development of stockbreeding: The villagers say, after land acquisition, they can use the existing water areas and borrow pits to develop aquaculture and lotus root cultivation, with an investment of about 1,000 yuan per mu and a net income of about 1,500 yuan/mu. b) Employment training and increase of labor service export: Aiming at market needs for labor service, training will be given on building, machine tool and electric welding skills to increase labor service export. c) Development of tertiary industries: The displaced persons will use compensation fees to deal with catering and repair services. d) Employment in the subproject: The construction of the subproject will provide some manual handling and civil construction job jobs to the affected people.  Resettlement measures for house demolition: According to the relocation policy of Cuozhen Town, for the residential houses to be demolished in the subproject, the town government will plan housing sites in a unified manner to build resettlement houses, the displaced households will exchange property rights at the standard of 25 m2/person, and pay a structural price difference: 30 yuan/m2 for the masonry concrete structure; 40 yuan/m2 for the masonry timber structure; the portion of the demolished area in excess of the area of the resettlement house will be subject to cash compensation.

B. Zhaoguang Village Zhaoguang Village has 3,402 people out of 1,226 households, including 1,667 men and 1,574 laborers, an arable area of 3,759.5 mu, and a per capita arable area of 1.1 mu. The main crops are paddy rice and rape. The per capita net income of farmers is 5,600 yuan, in which agricultural income accounts for about 15%. There are many productive and processing enterprises near Zhaoguang Village, where the farmers mostly work at a nearby enterprise or outside, and employment income is their main

source of income. The subproject will acquire 98.4 mu of arable land of Zhaoguang Village, accounting for 2.6% of total arable area, affecting 512 people out of 128 households, accounting for 10.4% of the total number of households and 15% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 87,507.5 yuan, 683.7 yuan per household and 170.9 yuan. After land acquisition, the per capita arable area of this village will be 1.07 mu. 383 m2 of residential houses will be demolished, affecting 18 people out of 5 households. According to the survey, the affected households ask for cash compensation other than land reallocation. Through consultation, the land compensation fees will be paid directly to the affected households. The possible restoration measures of Zhaoguang Village are as follows:  Measures for restoration of production income: a) Capital introduction and increase of job opportunities: The subproject will make the local traffic more convenient, and improve the capital introduction environment of Zhaoguang Village. The village collective will make use of this advantage to further introduce capital. b) Employment training and increase of labor service export: Aiming at market needs for labor service, training will be given on building, machine tool and electric welding skills to increase labor service export. c) Employment in the subproject: The construction of the subproject will provide some manual handling and civil construction job jobs to the affected people.  Resettlement measures for house demolition: For the residential houses to be demolished in the subproject, the Cuozhen Town Government will plan housing sites in a unified manner to build resettlement houses, the displaced households will exchange property rights at the standard of 25 m2/person, and pay a structural price difference: 30 yuan/m2 for the masonry concrete structure; 40 yuan/m2 for the masonry timber structure; the portion of the demolished area in excess of the area of the resettlement house will be subject to cash compensation.

Figure 5-1 Houses to Be Demolished in the Subproject and Resettlement Houses of Similar Projects Built in a Unified Manner after Demolition

2. Qiaotouji Town, Feidong County A. Qiaotouji Neighborhood Committee Qiaotouji Neighborhood Committee has 3,768 people out of 842 households, including 2,185 men and 2,336 laborers, an arable area of 2,470 mu, and a per capita arable area of 0.65 mu. The main crops are paddy rice and rape. The per capita net income of farmers is 4,459 yuan, in which agricultural income accounts for about 15%, and the main source of income of the farmers is employment.

The subproject will acquire 8.6 mu of arable land of Qiaotouji Neighborhood Committee, accounting for 0.5% of total arable area, affecting 92 people out of 23 households, accounting for 2.7% of the total number of households and 2.4% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 7,550.38 yuan, 328.3 yuan per household and 82.07 yuan. After land acquisition, per capita arable area will be 0.47 mu. 1,860 m2 of residential houses will be demolished, affecting 52 people out of 13 households. According to the survey, the affected households ask for cash compensation other than land reallocation. Through consultation, the land compensation fees will be paid directly to the affected households. The possible resettlement and restoration measures for Qiaotouji Neighborhood Committee are as follows:  Measures for restoration of production income: a) Agricultural restructuring: Pig raising, fish culture and other forms of stockbreeding can be developed. The investment per pig is about 400 yuan, and net income about 900 yuan; the investment per mu of fishpond is about 600-800 yuan, and net income about 1,500 yuan. b) Development of tourism: Zhaoguang Village has good tourist resources, including Longquan Temple, Shuangshan Temple, and rural tourism. The Qiaotouji Town Government has studied and planned some tourist projects. The subproject will improve the local traffic conditions, and provide more favorable conditions for the development of tourist projects. c) Employment in the subproject: The construction of the subproject will provide some manual handling and civil construction job jobs to the affected people.  Resettlement measures for house demolition: a) The displaced households will be granted compensation fees for house demolition at replacement costs. The village collective will plan housing sites on waste or unused land in the village for self-demolition and self-building. b) Those who are unwilling to have the village collective plan housing sites will be granted compensation fees for house demolition and housing site at replacement costs to buy a housing site at a suitable location to build a house themselves.

3. Zhonghan Town, Juchao District A. Zhonghan Neighborhood Committee Zhonghan Neighborhood Committee has 3,412 people out of 802 households, including 1,672 men and 1,868 laborers, an arable area of 2,086 mu, and a per capita arable area of 0.6 mu. The main crops are paddy rice and rape. The per capita net income of farmers is 4,510 yuan, in which agricultural income accounts for about 15%. The anchor chain industrial park of Zhonghan Town is an industrial exemplary zone of Anhui Province, with numerous anchor chain manufacturers. Most villagers work at these plants, and employment income accounts for about 80% of gross income. The subproject will acquire 17.8 mu of arable land of Zhonghan Neighborhood Committee, accounting for 1.3% of total arable area, affecting 312 people out of 78 households, accounting for 9.7% of the total number of households and 9.1% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 28,921.2 yuan, 370.8 yuan per household and 92.7 yuan per capita. 1,281 m2 of residential houses will be demolished, affecting 61 people out of 17 households. According to the survey, the affected households ask for cash compensation other than land reallocation. Through consultation, the land compensation fees will be paid directly to the affected households. The possible resettlement and restoration measures for Zhonghan Neighborhood Committee are as follows:

 Measures for restoration of production income: a) Restructuring of crop cultivation: The cultivated area of vegetables and fruits will be increased. Compared to cereal crops, income per mu is expected to rise by 600 yuan. b) Technical training and outside employment: Since there are many anchor chain manufacturers near the village, the displaced persons will be trained on electric welding and machine tool operating skills, so that they can work at a nearby enterprise or outside after the training. c) Development of tertiary industries: The displaced persons will use compensation fees to deal with catering and repair services. d) Employment in the subproject: The construction of the subproject will provide some manual handling and civil construction job jobs to the affected people.  Resettlement measures for house demolition: a) The displaced households will be granted compensation fees for house demolition at replacement costs. The village collective will plan housing sites on waste or unused land in the village for self-demolition and self-building. b) Those who are unwilling to have the village collective plan housing sites will be granted compensation fees for house demolition and housing site at replacement costs to buy a housing site at a suitable location to build a house themselves. B. Jianhua Village Jianhua Village has 5,955 people out of 1,498 households, including 2,918 men and 2,720 laborers, an arable area of 7,307 mu, and a per capita arable area of 1.2 mu. The main crops are paddy rice and rape. The per capita net income of farmers is 4,350 yuan, in which agricultural income accounts for about 15%. There are over 20 neon light and anchor chain manufacturers near Jianhua. Most of the villagers work at these enterprises, and employment income accounts for about 80% of gross income. The subproject will acquire 88.2 mu of arable land of Jianhua Village, accounting for 1.2% of total arable area, affecting 492 people out of 123 households, accounting for 8.2% of the total number of households and 8.3% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 95,550 yuan, 776.8 yuan per household and 194.2 yuan per capita. 347 m2 of residential houses will be demolished, affecting 21 people out of 5 households. Based on the survey, a land reallocation is made among the registered population of Jianhua Village every 10 years. The last reallocation occurred in 2003, and the next reallocation will take place 4 years later (2013). The displaced households of the subproject will obtain a compensation of 4 times the annual land output value loss, and the remaining compensation fees for land acquisition will be allocated to the affected households evenly in the village collective. The possible resettlement and restoration measures for Jianhua Village are as follows:  Measures for restoration of production income: a) Restructuring of crop cultivation: Paddy rice seed breeding will be developed, whose net income is about 2,000 yuan/mu, 4 times that of paddy rice cultivation. b) Technical training and outside employment: Since there are many anchor chain manufacturers near the village, the displaced persons will be trained on electric welding and machine tool operating skills, so that they can work at a nearby enterprise or outside after the training. c) Employment in the subproject: The construction of the subproject will provide some manual handling and civil construction job jobs to the affected people.  Resettlement measures for house demolition:

a) The displaced households will be granted compensation fees for house demolition at replacement costs. The village collective will plan housing sites on waste or unused land in the village for self-demolition and self-building. b) Those who are unwilling to have the village collective plan housing sites will be granted compensation fees for house demolition and housing site at replacement costs to buy a housing site at a suitable location to build a house themselves.

4. Tongyang Town A. Qiyang Village Qiyang Village has 4,073 people out of 1,084 households, including 1,996 men and 2,344 laborers, an arable area of 2,073.6 mu, and a per capita arable area of 0.5 mu. The main crops are paddy rice and rape. The per capita net income of farmers is 4,300 yuan, in which agricultural income accounts for about 15%. About 1/3 of the village’s population is working outside, and employment income accounts for 80%. The subproject will acquire 38.8 mu of arable land of Qiyang Village, accounting for 1.9% of total arable area, affecting 244 people out of 61 households, accounting for 5.6% of the total number of households and 6.0% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 32333.3 yuan, 530.1 yuan per household and 132.5 yuan per capita. 1,290 m2 of residential houses will be demolished, affecting 62 people out of 17 households. According to the survey, the affected households ask for cash compensation other than land reallocation. Through consultation, the land compensation fees will be paid directly to the affected households. The possible resettlement and restoration measures for Qiyang Village are as follows:  Measures for restoration of production income: a) Restructuring of crop cultivation: In case of strawberry cultivation, the investment per mu is about 5,000 yuan, and the net income per mu about 15,000 yuan. In case of greenhouse vegetable cultivation, the investment per greenhouse is about 2,000 yuan, and the net income per mu about 8,000-12,000 yuan. b) Technical training and outside employment: Many villagers of Qiyang Village are working outside. Aiming at market needs for labor service, the displaced persons can be trained on bench working, sewing and housekeeping skills for further labor service export. c) Employment in the subproject: The construction of the subproject will provide some manual handling and civil construction job jobs to the affected people.  Resettlement measures for house demolition: a) The displaced households will be granted compensation fees for house demolition at replacement costs. The village collective will plan housing sites on waste or unused land in the village for self-demolition and self-building. b) Those who are unwilling to have the village collective plan housing sites will be granted compensation fees for house demolition and housing site at replacement costs to buy a housing site at a suitable location to build a house themselves.

B. Taihe Village Taihe Village has 4,060 people out of 1,100 households, including 1,989 men and 2,313 laborers, an arable area of 4,965 mu, and a per capita arable area of 1.2 mu. The main crops are paddy rice and rape. The per capita net income of farmers is 4,500 yuan, in which agricultural income accounts for about 15%. The main sources

of income of the farmers are employment and sideline operations, accounting for about 80%. The subproject will acquire 21.1 mu of arable land of Taihe Village, accounting for 0.4% of total arable area, affecting 188 people out of 47 households, accounting for 4.3% of the total number of households and 4.6% of the total population of the village respectively. Based on estimates, the annual average income loss resulting from land acquisition is 23,737.5 yuan, 505.1 yuan per household and 126.3 yuan per capita. 959 m2 of residential houses will be demolished, affecting 35 people out of 10 households. According to the survey, the affected households ask for cash compensation other than land reallocation. Through consultation, the land compensation fees will be paid directly to the affected households. The possible resettlement and restoration measures for Taihe Village are as follows:  Measures for restoration of production income: a) Restructuring of crop cultivation: In case of strawberry cultivation, the investment per mu is about 5,000 yuan, and net income about 15,000 yuan. In case of cotton cultivation, the investment per mu is about 500 yuan, and net income about 1,000 yuan. b) Technical training and outside employment: Aiming at market needs for labor service, the displaced persons can be trained on bench working, sewing and housekeeping skills for further labor service export. c) Development of tertiary industries: Wholesale operations of melon seeds, peanut and other dried fruits, roasted seeds and nuts can be developed. Based on the survey, the profit per kilogram is about 1.5-2 yuan; based on a wholesale volume of 500kg per month in normal cases, annual net income is about 9,000 yuan-12,000 yuan. d) Employment in the subproject: The construction of the subproject will provide some manual handling and civil construction job jobs to the affected people.  Resettlement measures for house demolition: a) The displaced households will be granted compensation fees for house demolition at replacement costs. The village collective will plan housing sites on waste or unused land in the village for self-demolition and self-building. b) Those who are unwilling to have the village collective plan housing sites will be granted compensation fees for house demolition and housing site at replacement costs to buy a housing site at a suitable location to build a house themselves.

5.3 Training for displaced persons

Training needs will be identified based on the preference of APs for livelihood income restoration options (see section 5.2.2). To ensure that the displaced persons alter the traditional concept of employment, build up correct professional awareness and master necessary labor skills, the implementing agencies will appropriate special funds for resettlement training. The PMO will provide resettlement training in conjunction with the affected labor and social security authorities, including agricultural technical training, pre-job training and vocational skills training. The agricultural technical training covers fruit tree cultivation and stockbreeding techniques. The pre-job training covers the employment situation, the national employment policies, the protection of labor rights and interests, and professional ethics; the vocational skills training will be held irregularly based on job needs, and include nonagricultural technical training mainly. The general training program is shown in Table 5-2 and will be revised in the updated RP.

Table 5-2 Technical Training Program for Displaced Persons Fund arrangement No. Time Subjects Participants Scope of training (10,000 yuan) Affected Agricultural technical 1 Jun. 2010 2,000 15 households training Affected 2 Dec. 2010 2,000 Pre-job training 15 households Affected Vocational skills training 3 Jun. 2011 2,000 15 households (nonagricultural) 4 Other irregular technical training 15

A training plan will be formulated by each seriously affected village with guidance from county/township labor bureau/office and ACWF, and the training subsidies will come from the training budgets.

5.4 Protection of women’s rights and interests

At the preparation stage of the Resettlement Plan, the survey team organized women to participate in the impact survey of the subproject, and consulted them about their ideas for the income restoration plan. Women approve of the subproject and think the subproject is good to traffic improvement and land acquisition has little impact on their livelihoods. They expect cash compensation, employment in the subproject and training on crop and fruit tree cultivation, and stockbreeding techniques. Aiming at the willingness of women, 30% of women will get unskilled job opportunities at the implementation stage. In addition, the principle of equal pay for equal work will apply to both men and women. However, use of child labor is prohibited. The affected female labor will be given priority to in technical training to ensure their economic position and income will not be affected. 6,500 persons will receive resettlement training, with not less than 3,250 females (50%). Meanwhile, they can have access to relevant information during resettlement, and participate in consultation and resettlement. During the resettlement implementation, focus group discussions with affected women will be managed by the AHAB and local government officials to explain the regulations and improve women’s awareness.The compensation agreement will be signed by both spouses. See details in Appendix 3 Gender analysis of women during resettlement.

5.5 Assistance measures for vulnerable groups

According to the survey, the main vulnerable groups affected by the Project are the disabled, low-income persons and households seriously affected by the Project. According to the survey, 219 people out of 53 households among the people affected by land acquisition fall into vulnerable groups. During the whole relocation process, the PMO, the implementing agencies and local governments will pay particular attention to the resettlement of the vulnerable groups. The Anhui PMO has set up a special fund to support the vulnerable groups at 1% of the basic resettlement expenses, namely 351,000 yuan. They will not only be resettled for livelihood and production according to the implementation plan of the subproject, but also be provided certain assistance to improve their living and production conditions. In specific, the key measures are as follows: 5.5.1 Measures for the Disabled 1) Special allowances will be provided to the Disabled.

2) The training and employment as a priority to labor force in these households.

5.5.2 Measures for low-income or poor households 1) Skill training will be provided to 2 family members, at least one female. 2) Priority employment (such as outside jobs or work for the Project construction) will also be provided. 3) The pension will be provided by local government.

5.5.3 Measures for seriously affected households 1) Skill training will be provided to 2 family members, at least one female. 2) Priority employment (such as outside jobs or work for the Project construction) will also be provided. 3) When possible, replacement land should be arranged as a priority.

5.6 Restoration plans for temporarily occupied land

Temporary land occupation involves sand and stone yards, borrow pits, blending plants, spoil grounds, and production, living areas and roads occupied temporarily during construction, with a total area of 472.2 mu. The land area occupied temporarily for borrow pits is 212.5 mu. Through extensive consultation with the affected rural households, rural collective land occupied temporarily may be restored by the rural households, village collectives or implementing agencies. The restorer will be agreed on by representatives of the affected rural households, the village collectives and the implementing agencies. To reduce the impact of land acquisition on young crops, the subproject will be usually constructed after harvest or before seeding, and a prior notice will be given to the affected households to reduce their losses. 5.6.1 Restoration plan for land occupation for borrow pits The temporary land occupation for borrow pits will be at several central points. In order to minimize the occupation of arable land, borrow pits will be located in mountains and non-arable areas; if occupation of arable land is unavoidable, borrow pits will be located in low-lying land and derelict land with bad soil quality and low output value. The restoration options for temporary land occupation include:  Borrow pits can be connected to the local canal system as ponds for agricultural irrigation. This will minimize the impact on agricultural production, and make it easy to drain farmland and mitigate the hazard of inland inundation, improving overall agricultural output value indirectly.  According to the willingness of the affected people, borrow pits can also be used as fishponds for aquaculture or lotus roof cultivation, whose output value will be higher than that of crop cultivation.  Borrow pits can be turned into garbage landfills to improve the rural sanitary environment in conjunction with the program of “building a new socialist countryside”. At the present feasibility study stage, the specific positions of borrow pits have not been determined yet. After the detailed design, the restoration option will be determined as the case may be. In addition, land used for borrow pits will be compensated at the standards for permanent land acquisition, and such compensation is greater than the actual loss of arable land. Through a combination of the above measures, borrow pits will have almost no adverse impact to the villagers. 5.6.2 Restoration plan for other temporarily occupied land During construction on temporarily occupied land, strict measures will be taken to protect surface soil and avoid any irrecoverable impact. During excavation, surface

soil (recommended thickness 30-50cm) will be collected and piled up separately, and soil loss prevention measures will be taken. After construction, subsurface soil will be backfilled first, and then surface soil will cover the surface evenly, and the site will be leveled to alleviate the impact on the quality of arable land. Temporarily trampled land during construction will harden and should be plowed immediately after construction to restore its looseness. The field irrigation and drainage canals, facilities and plowing roads will also be restored to ensure the basic requirements for farmland irrigation can be met after reclamation. The compensation for temporary occupation of rural collective land is greater than the actual loss of arable land, and the villagers’ livelihoods will not be affected.

5.7 Restoration plan for infrastructure

The affected special facilities and ground annexes will be compensated for by the implementing agencies to property owners, and then restored by property owners. The restoration measures for demolished facilities must be planned in advance. In practice, these measures should be tailored to practical conditions, be safe, efficient, timely and accurate, and minimize adverse impacts on the nearby residents. For the affected municipal public facilities, the demolition agency should act on the construction drawings of the subproject, and minimize demolition without affecting construction. The demolition agency should rebuild (or relocate) the affected pipelines before demolition without affecting the regular lifestyle of the residents along the route (including those not to be relocated). In addition, for the production and living facilities (canals mainly) affected by the subproject, the design agency conducted an extensive survey of the subproject’s possible impacts on the production and livelihoods of the local residents in the form of discussion and questionnaire survey at the survey and design stage to collect opinions from the local people’s governments, competent authorities, social organizations and local residents. These opinions have been mostly embodied in the project design. Based on field exploration, the design agency took appropriate engineering measures for the affected production and living facilities at the design stage. For example, for canals disconnected due to highway occupation, culverts will be built in the roadbed or new exposed canals parallel to the highway built within the protected area of the roadbed; canals damaged by construction will be repaired after the completion of the subproject. Canals will be built by the construction team or by villagers in a compensated manner. All these costs have been included in the general budget of the subproject, and are no longer listed in the budgetary estimate in this report.

6 Resettlement Organization

6.1 Management agencies for resettlement implementation

6.1.1 Organizational setup To ensure that resettlement is carried out successfully and the expected results are fulfilled, a top down organization must be set up at the implementation stage to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that necessitates the assistance and collaboration of multiple departments, the communications, land and resources, and finance authorities will participate and assist in the implementation of resettlement. Each of the affected towns and villages has 1-2 leaders responsible chiefly for the assistance in resettlement. The agencies responsible for land acquisition and house demolition in the subproject include:  APCD Foreign-funded Project Management Office  AHAB  Municipal/county (including county-level municipal) highway administration bureaus (headquarters)9  Town people’s governments  Village committees (neighborhood committees)  Project design agency  Independent monitoring and evaluation agency  Other agency: Land Resource Bureau, House Demolition Office, Women's Federation, Labor Bureau, etc.

6.1.2 Responsibilities of agencies  APCD Foreign-funded Project Management Office Responsible mainly for organizing the resettlement of the subproject, formulating policies on resettlement activities of the subproject, coordinating relations among all levels of the resettlement organization, and serving as a bridge between ADB and the implementing agencies  AHAB Responsible mainly for handling day-to-day affairs in resettlement planning and implementation, and exercising the management, planning, implementation, coordination, supervision and monitoring functions of resettlement as the project management agency: Formulating the land acquisition, house demolition and resettlement policies for the subproject; Entrusting the design agency to define the affected areas, measure the data on physical objects affected by land acquisition and house demolition, and save such data; Applying for the license for planning of land use and the license for land used for construction; Giving operational training to the key resettlement officials of the land acquisition, house demolition and resettlement office;

9 A construction headquarters will be set up for the subproject based on the highway administration bureau and in conjunction with the land and resources bureau, finance bureau, auditing bureau, demolition office, communications bureau and construction bureau to be responsible for resettlement.

Organizing and coordinating the preparation and implementation of the Resettlement Plan; Responsible for the management and disbursement of the resettlement funds, and supervising the use thereof; Directing, coordinating and supervising resettlement activities and their progress; Directing and assisting in the disposition of complaints; Taking charge of and inspecting internal monitoring, and preparing land acquisition, house demolition and resettlement progress reports; Selecting the external monitoring agency and assisting in external monitoring activities  Municipal/county (including county-level municipal) highway administration bureaus (headquarters) Assisting the design agency in defining the affected areas, measuring the data on physical objects affected by land acquisition and house demolition, and saving such data; Assisting in preparing the Resettlement Plan and responsible for the implementation of resettlement; Selecting key resettlement officials for operational training; Organizing public consultation, and propagandizing the resettlement policies; Directing, coordinating and supervising resettlement activities of the agencies related to land acquisition, house demolition and resettlement and their progress; Responsible for resettlement, paying resettlement expenses pursuant to the agreement, and handling complaints from displaced persons; Implementing internal monitoring activities, preparing internal monitoring reports, and reporting to AHAB regularly; Assisting in external monitoring activities.  Town people’s governments The town resettlement organization is headed by the leader responsible of each town, and composed of key officials of the land and resources office, the police office, the civil affairs office and the villages. Its main responsibilities are: Participating in the survey of the subproject, and assisting in the preparation of the Resettlement Plan; Organizing public participation, and propagandizing the resettlement policies; Implementing, inspecting, monitoring and recording all resettlement activities within the town; Responsible for the disbursement and management of land compensation fees; Supervising the acquisition, occupation and restoration of land; Reporting land acquisition and resettlement information to the county highway administration bureau; Coordinating and handling conflicts and issues arising from its work.  Village committees (neighborhood committees) The resettlement working team of a village committee is composed of its key officials. Its main responsibilities are: Participating in the social and economic survey and the impact survey of the subproject; Organizing public consultation, and propagandizing the policies on land acquisition and house demolition;

Organizing the implementation of resettlement activities for agricultural and nonagricultural production; Reporting the displaced persons’ opinions and suggestions to the competent authorities; Providing assistance to displaced households with difficulties.  Project design agency At the planning and design stage, it will survey the physical indicators of land occupation and house demolition, the environmental capacity, the usable resources, etc. accurately, and assist the governments in the affected areas in formulating resettlement plans, preparing budgetary investment estimates for compensation for land occupation and house demolition, and drawing the relevant drawings. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the employer timely, make design disclosure to the project management offices of all levels, assist in the implementation of the relocation and resettlement for production of the displaced persons, and improve the resettlement plans based on the practical situation.  Independent monitoring and evaluation agency The employer will employ a qualified monitoring and evaluation agency as the external resettlement monitoring and evaluation agency. Its main responsibilities are: 1) Observing all aspects of resettlement planning and implementation as an independent monitoring and evaluation agency, monitor and evaluate the resettlement results and the social adaptability of the displaced persons, and submit resettlement monitoring and evaluation reports to ADB through the PMO; and 2) Providing technical advice to the PMO in data collection and processing.

6.2 Staffing and facilities

6.2.1 Staffing For the successful implementation of resettlement, all levels of the resettlement organization of the subproject have been staffed with dedicated personnel, and a smooth information communication channel created. The staffing of all levels of the resettlement organization is shown in Table 6-1.

Table 6-1 Staffing of Resettlement Agencies Agency Staff Composition APCD 4 Civil servants AHAB 2 Civil servants, technicians Municipal/county (including county-level municipal) highway 3 Civil servants, technicians administration bureaus (headquarters) Cadres and representatives of displaced Affected towns and villages 4-6 persons External monitoring agency 4 Resettlement experts

6.2.2 Facilities All levels of the resettlement organization can make use of the existing resources. The basic office, traffic and communication equipment is already available, including office desks and chairs, computers, printers, telephones, facsimile machines, means of transport, etc. 6.2.3 Institutional training program To ensure the successful implementation of resettlement, the displaced persons

and the resettlement personnel must be trained under a training program, which will be developed by the PMO and. A training and human resources development system has been established for the resettlement organization at the municipal, county, town and village levels. Training will be conducted in diverse forms, including expert lecture, technical training courses, visiting and learning from other resettlement projects, and field training of technical and management personnel. The training program is shown in —ADB resettlement policies and principles; —The differeces between the provisions of the ADB Policy and PRC Laws, and Policy implementation —Management of design and implementation of the Resettlement Plan; —Points for attention during the implementation of resettlement; —Resettlement monitoring and evaluation

Table 6-2. The scope of training includes: —ADB resettlement policies and principles; —The differeces between the provisions of the ADB Policy and PRC Laws, and Policy implementation —Management of design and implementation of the Resettlement Plan; —Points for attention during the implementation of resettlement; —Resettlement monitoring and evaluation

Table 6-2 Resettlement Training Schedule Fund Training Time Location Subjects Scope (10,000 method yuan) Resettlement Jun 2010 Hefei Lecture Resettlement staff 16 operational training Learning and Backbone staff of Field visit of ADB Dec 2010 Domestic 16 inspection PMO resettlement projects Exchange and Exchange and discussion on Jun 2011 Hefei Resettlement staff 14.4 lecture experience and existing issues in resettlement

In addition, the following measures will be taken in the subproject to improve the capabilities of the resettlement organization: (1) Define the scope of responsibilities of all levels of the resettlement organization, and strengthen supervision and management; (2) Improve the strength all levels of the resettlement organization gradually, especially specialized technical forces; all personnel must attain a certain degree of professional proficiency and management level; strengthen their technical equipment, such as computers, monitoring equipment and means of transport; (3) Selecting personnel strictly, strengthen operational and technical training, and train the management and technical personnel of all levels of the resettlement organization to improve their professional proficiency and management level; (4) Appoint female officials appropriately and give play to their role in the implementation of resettlement; (5) Establish a database, strengthen information feedback, and ensure the smooth top-down and bottom-up communication of information; leave major issues will be resolved by the resettlement leading group; (6) Strengthen the reporting system and internal monitoring, and solve problems timely; and

(7) Establish an external monitoring and evaluation mechanism, and a pre-warning system.

7 Public Participation, Complaints and Appeals

7.1 Public Participation

According to the policies and regulations of ADB, the PRC and Anhui Province on land acquisition, house demolition and resettlement, in order to protect the lawful rights and interests of the displaced persons, reduce disputes and complaints, listen to the displaced persons’ opinions and advice, and further improve the policies and implementation rules on land acquisition and resettlement and the Resettlement Plan of the subproject, and organize implementation properly so as to realize the goal of resettling the displaced persons properly, it is necessary to conduct public participation at the preparation and implementation stages of the subproject. 7.1.1 Participation at the preparation stage Since December 2008, under the direction of the technical assistance and consultation experts, the survey team of Anhui Communications Vocational and Technical College (ACVTC) and Hohai University has conducted a series of social and economic surveys and public opinion consultations (with 30% being women). At the preparation stage, the PMO, the implementing agencies and the design agency conducted extensive consultation on land acquisition and resettlement. The participation activities at the preparation stage are shown in Table 7-1. The minutes of the public participation meeting are shown in Appendix 6. The resettlement Information Booklets (RIBs) are to be handed out in June 2009.

Table 7-1 Public Participation at the Preparation Stage Date Organizer Participants Number Purpose Key opinions and details  Introduction to the background and objectives Anhui Provincial Affected Aug. Feasibility study, of the subproject Communications people, village – field visit,  Minimizing the occupation of Planning, officials, 140 Nov. preliminary impact arable land in site selection Survey and engineering 2008 survey  Minimizing impacts on the Design Institute technicians displaced persons in road routing  Assistance in the impact survey Government Preparation for the  The villagers’ Dec. departments Resettlement representatives express a 2008 ACTVC concerned and 700 Plan, impact and strong need for the –Feb. villagers’ social and subproject 2009 representatives economic surveys  Social and economic survey and displaced households survey  Consultation of Government compensation and income Hohai departments Preparation for the Mar. restoration plans University, concerned and 180 income restoration 2009  Canal restoration plan ACTVC villagers’ plan  Restoration measures for representatives borrow pits, etc. Disclosure of the Affected  Disclosure of compensation Jun Resettlement Plan APCD PMO people, villager standards, appeal channel, 2009 or information teams etc. booklet Publication of the Jul. ADB website draft Resettlement 2009 Plan

7.1.2 Participation plan for the implementation stage With the progress of preparation and implementation, the implementing agencies will conduct further public participation. The public participation arrangements are shown in Table 7-2.

Table 7-2 Public Participation Program of the Subproject Purpose Mode Time Unit Participants Topic Anhui PMO, Highway Bureau, Village Land & Resources Disclosure of land bulletin Bureau; affected acquisition area, Bulletin on land All affected board and Sep 2009 county’s highway compensation acquisition people village bureau and land & standards and modes meeting resources bureau, of resettlement, etc. town and village officials Anhui PMO, Highway Bureau, Bulletin on Village Land & Resources compensation bulletin Bureau; affected and All affected Compensation fees board and Sep 2009 county’s highway resettlement people and mode of payment village bureau and land & plan for land meeting resources bureau, acquisition town and village officials Check for omissions, Anhui PMO, and confirmation of the Highway Bureau, final quantities affected Land & Resources Detailed list of Recheck of Bureau; affected Sep. –.Dec All affected occupied land and physical Field survey county’s highway 2009 people losses of the displaced indicators bureau and land & persons resources bureau, Preparation of the town and village basic compensation officials agreement Anhui PMO, Highway Bureau, Determination Land & Resources Village Discussion of the final and Before Bureau; affected meeting All affected income restoration plan implementation implement county’s highway (many people and the plan for use of of income -ation bureau and land & times) compensation fees restoration plan resources bureau, town and village officials 3 months Local land & Housing plots Village before resources bureau, All affected / selection meeting house town and village people demolition officials June Local labor bureau, Village All affected Discussion of training Training plans 2010~June town and village meeting people needs 2011 officials 1) resettlement progress and impacts Dec, Village town and village All affected 2) compensation Monitoring 2009~Jan participation officials people disbursement 2013 3) information disclosure

Purpose Mode Time Unit Participants Topic 4) livelihood restoration and housing relocation

7.2 Complaints and appeals

Public participation is encouraged throughout the preparation and implementation of the Resettlement Action Plan. Therefore, it is likely that great disputes will not arise. However, some unexpected issues may arise from this process. In order to address such issues and ensure the successful construction and land acquisition of the subproject, a transparent and effective appeal channel has been established. The basic procedure is as follows: Stage 1: If any right of any displaced person is infringed upon in any aspect of land acquisition and resettlement, he/she can report this to the village committee. Either the committee or the displaced person may seek for a solution from the town government through consultation. After receipt of an appeal, the town government will record it, and study a solution together with the committee and the displaced person within 2 weeks. Stage 2: If the complainant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the county-level highway administration bureau (headquarters) after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the complainant is dissatisfied with the disposition of Stage 2, he/she may file an appeal to AHAB after receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: f the complainant is still dissatisfied with the disposition of AHAB, he/she may file an appeal to the administrative authorities with competent jurisdiction level by level for arbitration in accordance with the Administrative Procedure Law of the People’s Republic of China after receiving such disposition. Stage 5: If the complainant is still dissatisfied with the arbitration award, he/she may bring an action to a civil court in accordance with the Administrative Procedure Law after receiving such award. All agencies concerned will accept the affected people’ complaints and appeals free of charge, and all costs reasonably incurred will be disbursed from the contingency expenses of the subproject. At the whole construction stage, this appeal procedure will remain effective so that the affected people can use it to solve relevant issues. The above appeal channel and the right of appeal will be notified to the displaced persons through the participation process at a public meeting and the resettlement information booklet. In the meantime, appeal proceedings will be published to the affected population people through media.

8 Resettlement Budget

8.1 Resettlement budget

Table 8-1 Budget of Resettlement Expenses Total Feidong Juchao Expense No. Item (10,000 (10,000 Proportion Remarks (10,000 yuan) yuan) yuan) Collective 1 1123.5 1243.7 2367.1 45.50% land Land 1.1 678.3 752.2 1430.5 27.50% compensation Resettlement 1.2 407 451.3 858.3 16.50% subsidy Crop 1.3 38.1 40.2 78.3 1.50% compensation Temporarily 2 295.5 356.2 651.6 12.50% occupied land Land occupied 2.1 temporarily for 115.6 139.4 255 4.90% borrow pits Other land Based on 2 2.2 occupied 94.2 113.6 207.8 4.00% years temporarily Land 2.3 85.6 103.2 188.9 3.60% reclamation fee Rural 3 residential 284.4 203.9 488.3 9.40% houses Housing 3.1 262.4 188.9 451.3 8.70% compensation Other 3.2 22 15 37 0.60% compensation Ground 4 2.1 3.4 5.5 0.10% annexes Total of Items 1-4 1705.4 1807.2 3512.5 67.50% Land acquisition 5 44.9 49.7 94.7 1.80% management fee Surveying, design and 6 51.2 54.2 105.4 2.00% research expenses Administrative 7 85.3 90.4 175.6 3.40% expenses Technical 8 training 51.2 54.2 105.4 2.00% expenses External monitoring and 9 68.2 72.3 140.5 2.70% evaluation expenses Subsidy for 10 vulnerable 17.1 18.1 35.1 0.70% groups Contingency Sum of 11 202.3 214.6 416.9 8.00% expenses Items 1-10 Land 12 acquisition 285.9 335.1 621 11.90% taxes Total of items 5-13 806 888.6 1694.6 32.50% Total expenses 2511.4 2695.8 5207.2 100.00%

8.2 Resettlement investment plan and sources of funds

The sources of the resettlement funds are counterpart funds from local finance and domestic loans. Before construction or during implementation, the investment plan will be implemented in stages in order not to affect the production and living conditions of the rural households affected by land acquisition, as shown in Table 8-2.

Table 8-2 Resettlement Investment Plan of the Subproject Year 2009 2010 2011 Total Investment (10,000 yuan) 2603.6 2082.9 520.71599 5207.2 Proportion 50% 40% 10% 100%

8.3 Management and disbursement of resettlement funds

The land compensation and the resettlement subsidy will be used in adequate consultation with the villagers’ opinions; the crop compensation will be paid to the affected people directly; the compensation fees for infrastructure and annexes will be paid to the entities and individuals concerned. To ensure that the resettlement funds are in place timely and fully, and to ensure the restoration of the production, livelihoods and income level of the affected rural households, the following measures will be taken:  All expenses related to resettlement will be included in the general budget of the subproject;  The land compensation and the resettlement subsidy will be paid up before land acquisition so that all affected people can be resettled properly;  House demolition compensation will be paid 50% to the APs after signing the agreements, and the rest will be paid when the demolition completed.  To ensure the successful implementation of land acquisition and resettlement, and to ensure that all funds are disbursed on schedule, all levels financial and supervisory organization will be established; and  The budget is an estimate of the resettlement costs. Due to practical variations in the affected areas, practical impacts of DMS (Detailed Measurement Survey), modifications to compensation, inflation and other factors, the actual expenses may be increased, but the implementing agencies will surely disburse the compensation fees. The budget has taken contingency expenses into account, and will be used and modified as necessary. These costs will be revised in the updated RP.

9 Resettlement Implementation Plan

9.1 Principles for resettlement implementation

According to the implementation schedule of the subproject, the construction works will commence in 2009 and be completed in 2011. To ensure that the resettlement schedule is linked up to the construction schedule, land acquisition will start from May 2009 and end in June 2009. The basic implementation principles of resettlement are:  Land acquisition should be completed 3 months before the commencement of construction. The specific time of commencement should be determined as necessary for land acquisition, house demolition and resettlement.  During resettlement, the affected people should have opportunities to participate in the subproject. Before the commencement of construction, the scope of land acquisition will be disclosed, and a resettlement information booklet will be distributed for the purpose of public participation.  All types of compensation should be paid to property owners directly in full within 3 months from the date of approval of the land acquisition compensation and resettlement plans. No entity or individual should use the compensation fees for properties on their behalf, and such fees should not be discounted during disbursement for any reason.

9.2 Schedule for resettlement implementation

The overall progress plan for resettlement shall be developed based on the progress of land acquisition. However, this schedule shall be adjusted accordingly if the overall progress deviates. Details are shown in Table 9-1. Table 9-1Implementation Schedule of Resettlement Responsible No. Resettlement Tasks Target Timing Status Agency 1 Disclosure - S105 26 AVs PMO & AHAB 30 June 2009 RPs posted on ADB 1.2 IA, PMO & ADB July 2009 websites 2 Resettlement Plans & Budgets 2.1 Approval of RP & budgets CNY52.072 APG and PMO July 2009 (and compensation rates) million 2.2 Village rehabilitation plans 26 villages VCs Dec. 2009 2.3 Update RP after / IA and PMO Jan. 2010 design/DMS 3 Detailed Measurement Surveys (DMS) 3.1 S105 AHAB 30 Nov. 2009 4 Compensation Agreements 4.1 Village land agreements 26 villages LRBs 28 Feb. 2010 4.2 Household land 1616 AFs VCs 30 June 2010 agreements 4.3 House/property 140 AFs LRBs Mar.-Nov. 2010 agreements 5 House Relocation 5.1 Selection & approval of 140 AFs Town, VCs & AFs Aug.-Dec. 2009 sites 5.2 Site infrastructure 15 sites Town & VCs Mar.- Oct.2010 preparation 5.3 House demolition 140 houses Contractor/AFs Mar.-Aug. 2010 5.4 New house construction 140 houses VC or AFs Mar.-Dec. 2010 5.5 Moving into new houses 140 AFs AFs July-Dec. 2010

Responsible No. Resettlement Tasks Target Timing Status Agency 6 Implementation of Rehabilitation Measures 6.1 Land compensation payments to AFs and land 26 villages Towns & VCs Mar.-June 2010 adjustment (where applicable) 6.2 Implement village 26 villages VCs Jan.-Dec. 2010 rehabilitation plans 6.3 Advice for income Towns, VCs, Labor, restoration, starting 1616AFs Apr.-Aug. 2010 ACF business & jobs 6.4 Implement Training 1616AFs Labor Offices May-Dec. 2010 programs 6.5 Identify vulnerable AF and Labor & Social implement support ~150 AFs Feb.-June 2010 Security, PMO measures 6.6 Identifying and hiring AF for PMO, Labor, Apr. 2010 to ~2000 APs project construction contractors Dec. 2012 7 Resettlement Capacity Building 7.1 Training forAHAB & LRB 12 people ADB Dec. 2009 7.2 Training for county & town 450 officers and PMO and LRB Jan.-Feb. 2010 officials and village leaders leaders 8 Monitoring & Evaluation 8.1 Baseline surveys One RP Monitor 31 Dec. 2009 8.2 Set-up internal supervision As per RP PMO & IA 31 Dec. 2009 8.3 Contract external monitor One PMO 30 Nov. 2009 8.4 Quarterly (as Commencing Internal monitoring reports PMO & IA required) 31 Mar. 2010 8.5 July 2010 1stReport External monitoring reports Semi-annual Monitor Jan. 2011 2nd Report July 2011 3rd Report 8.6 Jan. 2012 1stReport External evaluation reports Annual Monitor Jan. 2013 2nd Report 8.7 Resettlement Completion One Reports IA & PMO June 2013 Reports 9 Documentation of Consultation IA Ongoing 10 Documentation of Grievances IA Ongoing 11 Flow of Land Compensation and Resettlement Funds 11.1 - To IA Initial funds Feb. 2010 11.2 - To villages Most of funds IA Mar.-June 2010 11.3 - To households Most of funds IA VCs Mar.-Aug. 2010 12 Commence Land Acquisition and Civil Works 12.1 S105 AHAB 31 Mar. 2010 AF=affected family; AP=affected person; AV=affected village; IAs=Implementing Agencies; APG=Anhui Province Government; PMO=Project Management Office; APCD=Anhui Provincial Communications Department; AHAB=Anhui Highway Administration Bureau; LAR=land acquisition and resettlement; RIB=resettlement information booklet; RP=resettlement plan; VC=village committees.

10 Monitoring and Evaluation

To ensure the successful implementation of the Resettlement Plan and realize the goal of resettling the displaced persons properly, the implementation of the land acquisition, house demolition and resettlement activities of the subproject will be monitored and evaluated regularly as required by the ADB resettlement policies, including internal and external monitoring.

10.1 Internal monitoring

The internal monitoring agency of the subproject is APCD. Internal monitoring will be executed jointly by AHAB and other competent authorities (e.g., land and resources bureau). The PMO will prepare a detailed internal monitoring plan for the land acquisition and resettlement activities of the subproject. The scope of monitoring includes: (1) The survey and coordination of and suggestions for key issues of the displaced persons and the implementing agencies during implementation; (2) The restoration level of the household income of the displaced persons after land acquisition; (3) The resettlement and restoration level of the displaced persons after house demolition; (4) The restoration and resettlement of the vulnerable groups in the population affected by land acquisition and house demolition; (5) The disbursement, use and availability of the compensation fees for land acquisition and house demolition; (6) The degree of participation and consultation of the rural households affected by land acquisition and house demolition during implementation; (7) Resettlement training and its results; and (8) The management agencies for resettlement implementation in the affected areas, the training and working efficiency of the implementation personnel. The APCD Foreign-funded Project Management Office (PMO) will submit an internal monitoring report to ADB quarterly. In such reports, the statistical data of the past 3 months will be tabulated to reflect progress through comparison of the actual and planned use of the land acquisition, resettlement and compensation fees. Error! Reference source not found. and Error! Reference source not found. provide some formats.

Table 10-1 Progress Report of Land Acquisition, House Demolition and Resettlement ______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Planned Proportion of Item Unit Actual quantity Aggregate quantity completion Permanent land acquisition Mu Temporary land use Mu House demolition area m2 Payment of land 10,000 compensation yuan Compensation for house 10,000 demolition yuan Personnel training Person Job arrangement Person

Land adjustment Mu Reported by: Signature (person responsible): Official seal:

Table 10-2 Implementation Schedule of Fund Use ______, ______Town, ______District (County) Cut-off date: MM/DD/YY Date completed: MM/DD/YY Investment Compensation Description Unit/ Adjusted Proportion of Affected unit required received 10 Qty. compensation compensation (yuan) (yuan) Village 1 Village 2 Collectives Displaced households Entities Reported by: Signature (person responsible): Official seal:

10.2 External monitoring

As required by the ADB policies, the PMO will employ a qualified, independent resettlement agency with experienced in ADB projects as the independent resettlement monitoring agency. The external monitoring and evaluation agency will make follow-up monitoring and evaluation of resettlement activities, monitor the progress, quality and funds of resettlement, and provide advisory opinions. It will also make follow-up monitoring of the production level and standard of living of the displaced persons, and submit monitoring and evaluation reports to the PMO and ADB. 10.2.1 Scope and methods of external monitoring (1) Baseline survey The external monitoring agency will make a baseline survey of the villages affected by land acquisition in the subproject, and collect baseline data on the production level and standard of living of the monitored displaced households (standard of living, production and income levels). The survey of production level and standard of living will be conducted semiannually to track variations in this aspect. The survey methods include follow-up survey of typical sample (sample size: 20% of households affected by land acquisition 20%, 20% of households affected by house demolition, 50% of affected villages; the sample households will be sampled randomly), random interview and field observation to collect necessary data. A statistical analysis will be made on this basis for evaluation. (2) Regular monitoring and evaluation During the implementation of the Resettlement Plan, the external monitoring agency will perform regular follow-up resettlement monitoring of the following activities twice a year through field observation, follow-up survey of the sample households and random interview with the displaced persons:  Disbursement and amount of compensation fees;  Training;  Support to the vulnerable groups;  Restoration and reconstruction of infrastructure and special facilities;  Resettlement and restoration of production and livelihoods;

10 Fill building of village-level road (number), labor training and employment or subsidy for vulnerable groups, etc. in “Description”.

 Compensation for property losses;  Schedule for the above activities (applicable at any time);  Resettlement network organization;  Use of compensation fees for collective land and income of the displaced persons;  Increase in employment income of labor; and  Whether the affected people benefit from the subproject. (3) Public consultation The external monitoring agency will attend the public consultation meetings to be held during the implementation of resettlement. By attending these meetings, the external monitoring agency can evaluate the results of public participation. (4) Complaints The external monitoring agency will visit the affected villages regularly, and inquire of the town governments and the implementing agencies that accept complaints about the disposition of complaints. In the meantime, it will also meet complainants and propose corrective measures and suggestions for the existing issues so that the implementation process becomes more effective. 10.2.2 External monitoring reporting The external monitoring and evaluation agency will submit a monitoring report and an evaluation report to ADB and the PMO semiannually. The reporting schedule is shown in Error! Reference source not found..

Table 10-3 Schedule of Resettlement Monitoring and Evaluation Report Date 1 Baseline socioeconomic survey report Dec. 2009 2 1st monitoring report Jul. 2010 3 2nd monitoring report Jan. 2011 4 3rd monitoring report Jul. 2011 5 1st annual evaluation report Jan. 2012 6 2nd annual evaluation report Jan. 2013 7 Post evaluation report Jun. 2013

10.3 Post-resettlement evaluation

After the completion of the subproject, on the basis of monitoring and evaluation, the post-evaluation theory and methods will be used to make a summary and evaluation of resettlement activities to evaluate successful experience and lessons from land acquisition and resettlement and provide a reference for subsequent resettlement.

Appendixes

Appendix 1 Schematic Map of the Subproject

Appendix 2 Social and Economic Information of Affected Towns

Town/ Xiang/ Cuozhen Qiaotouji Zhonghan Tongyang Woniushan Item Unit P Sub-district Town Town Town Town Sub-district opulation Total 21,242 17,391 8,580 17,395 17,432 households Total / 73,856 73,043 32,929 65,432 75,190 population In which, / 37,686 7,594 16,135 32,758 17,902 men Agricultural / 67,143 15,186 23,828 48,231 18,500 population Total arable area Hectare 5,183 5,600 2,701 5,071.2 5,163 mu/ Per capita arable area 1.05 1.15 1.23 1.2 1.03 person Gross output 100 million 45.5 7.1 9.4 8.4 6.9 value yuan Agricultural 100 million gross output 3.4 2.4 3.38 3.1 2.2 yuan value Industrial GDP 100 million gross output 40.3 4.3 5.1 5 4.1 yuan value Gross output value of 100 million 1.8 0.4 0.92 0.3 0.6 tertiary yuan industries Net income of farmers Yuan 5,600 4,500 4,285 4,556 4,479

Appendix 3 Gender Analysis of Affected Areas

Part A – Gender Analysis of Rural Women in the Project Area 1. Legal Rights According to China’s laws, women have equal legal rights with men. of Women However, some women are not fully aware of their rights. The women of the project affected area have relatively good social status. All key 2. Status of issues of a family are determined through discussion both by the husband and Women in wife. Men are the backbones in a family. They attend the important meetings of the Society village. However, women have the influences on them when they are required to make determination. Women have the same title as men. Like other parts of China, in the affected areas, when a daughter is married, her land will remain in her mother’s home and 3. Legal title to she can only share the land owned by her husband’s home since the household land and contract responsibility system was put into practice in 1982. However, if a second property round of land contracting is carried out at the affected village (around 1999), this situation has been corrected. If land acquisition, house demolition and resettlement are involved, women will have equal rights to compensation. 4. Access to common Women have equal rights. property There is no restriction on gender role. However, women do housework and 5. Livelihoods appropriate agricultural production tasks mainly in Chinese rural areas, while men and gender deal with transport or work mainly. Generally, the working hours of women are 1.2 roles times those of men. In the meantime, many young women would also go out for work. 6. Contribution Women’s income is from farming and household sidelines mainly, accounting for to household about 25% of household income. income 7. Intra- Women have an equal voice in decision-making; when men are away for work, household women make decisions. equality Boys and girls enjoy equal opportunities in receiving education, and as long as 8. Educational children study hard, their parents would do their best to support their school levels education. Health conditions are quite good and there is no significant difference in nutrition 9. Health levels compared to men; however, medical expenses are rising which is a condition significant burden for some households, and women may suffer more. Women are represented in all village committees. In the meantime, women have a 10. Village and good informal network in the village and the villager team. Women may participate government in the election of the village committee, and have the right to elect and be elected; institutions local governments attach great importance to women’s development, especially in poverty reduction. Women enjoy a good status in the affected areas, and there is no restriction on Overall gender role; though women seldom participate in the decision-making of public evaluation and affairs of the village collective, they can express their views in many ways (e.g., key risks through male members of the household). B—Gender analysis of women during resettlement Mitigation Gender issue Concern/risk Impact of the subproject measures (1) Cash Women will be compensation or Men and women have equal rights to 1 Land, property deprived of land or improvement of compensation for land acquisition, and right to properties or have the quality of resettlement etc. the project will not have compensation no right to remaining land, any adverse impacts. compensation. restructuring of crop cultivation 2 House Women have no Women have title to houses, and house (2) Women have demolition and right to decision reconstruction is determined jointly by all title to rebuilt

Part A – Gender Analysis of Rural Women in the Project Area rebuilding making or use the family members, so women can houses. compensation participate in the selection of housing site, fees. house construction and transitional housing arrangement, etc. All affected households will lose part of (1) Women will land only, so the affected households will receive land lose part of income only. The acquisition fees; compensation fees will be used at the (2) women will Women are own discretion of the affected account for at 3 Restoration of affected even more households. Only seriously affected least 50% among production and seriously, and households have to change their sources trainees; (3) income after obtain less of income. Except cash compensation, during land acquisition assistance. the affected households will be aided in construction, restoring income through auxiliary women can have measures (priority in employment during at least 30% of construction, technical training and unskilled job subsequent support, etc.) opportunities. This will not lead to gender inequalities. For most households, the impacts of Women will have a 4 Increase in resettlement are not serious. The loss of heavier burden or gender land and the sufficient compensation will Monitoring fewer inequalities help women change the structure of crop opportunities. cultivation (e.g., cultivating more cash crops), which will increase their income. 5 Community The social network The subproject will not affect the No impact network system will be damaged. community network seriously. Serious health or Provision of 6 Impact on social problems The subproject will not affect the villages assistance health / increase due to the stress of seriously, but some seriously affected together with the of social resettlement households and vulnerable groups will be civil affairs problems (violence, AIDS faced with difficulties. authorities propagation, etc.) The resettlement impacts and policies are transparent through the bulletin of land acquisition, the resettlement information No source of 7 Public booklet and consultation meetings; Holding a information or no consultation and women can play an active part in the separate participation in participation above activities. In the resettlement women’s meeting decision making survey, women were surveyed specially, and their opinions taken into account in the Resettlement Plan. The PMO will No channel or 8 Complaints address women’s ability of complaint Women have equal rights. and appeals issues and take or appeal remedies actively. Encourage all Women’s needs affected people, are not fully The resettlement funds will be audited. In especially 9 Monitoring understood or the the meantime, the external monitoring women, to and Evaluation impacts on them agency will pay special attention to participate in are not fully women’s issues. monitoring and considered. evaluation

Appendix 4: Distribution Structure Sampling Survey

County Town/ Households Affected Sampling City Village /district Xiang sampled households rate (%) Xin’an Huaguang 27 123 22% Cuozhen Zhaoguang 26 128 20% Xianfeng 35 136 26%

Feidong County Feidong County Zhenxing 24 121 20% Shanwang 10 29 34%

Hefei Hefei Qiaotouji Neighborhood 10 26 38% Committee Longquan 4 18 22% Qiaotouji Qiao’an 12 37 32% Hongguang 7 26 27% Taiping 10 33 30% Guoguang 6 31 19% Tongshan 17 51 33% Xinqiao 24 83 29% Taihe 19 53 36% Tongyang Qiyang 29 68 43% Heyu 33 146 23%

Juchao District Sanfen 18 73 25% Zhonghan Town Chaohu Chaohu Neighborhood 24 89 27% Committee Zhonghan Miaoji 17 79 22% Jianhua 31 126 25% Guangyan 27 132 20% Wujia Community 2 7 29% Jiatang Community 1 5 20% Woniushan Qiaodong 2 8 25% Qiaotou 2 7 29% Total 426 1,678 25%

Appendix 5 Policies on Endowment Insurance of Farmers Deprived of Land

 Anhui Province

Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63)

All municipal and county people’s governments, all departments of and agencies directly under the provincial government, and agencies of Central government in Anhui: To ensure the employment and social security of farmers affected by land acquisition practically, and maintain their lawful rights and interests, the following opinions are proposed on the employment and social security of farmers affected by land acquisition in accordance with the Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28). 1. Fully realize the importance and urgency of ensuring the employment and social security of farmers affected by land acquisition With the industrialization and urbanization of rural areas, there are an increasing number of farmers affected by land acquisition. It has become an urgent task in our province’s economic and social development to solve production and livelihood issues for farmers affected by land acquisition. Establish a sound employment mechanism and social security system for farmers affected by land acquisition to provide a stable source of income and reliable basic living guarantee to farmers affected by land acquisition, and solve their long-term livelihood issues. This is an embodiment of the important thought of the “Three Represents” and an objective requirement for building a well-being society in all aspects, and has great and far-reaching significance in protecting the lawful rights and interests of farmers affected by land acquisition, maintaining social and political stability, improving the investment environment, and promoting the comprehensive, sustained, rapid and balanced economic and social development of our province. Governments at all levels shall take it an important task and a priority to promote the employment of farmers affected by land acquisition, and accelerating the establishment of the social security system for farmers affected by land acquisition, and perform this task perfectly. 2. Principles to be followed in ensuring the employment and social security of farmers affected by land acquisition (1) Identify subjects of employment and social security reasonably: Subjects of the employment and social security of farmers affected by land acquisition are the agricultural population losing all or most of farmland within the planning area of a city (including organic town) approved for land acquisition by the State Council or the provincial people’s government pursuant to law. Out of the planning area of a city (including organic town), the agricultural population not having the basic living and production conditions, or having a per capita arable area of not less than 0.3 mu, or no longer occupying farmland within rural collective economic organizations after voluntary adjustment and not to be non-locally resettled by local people's governments after land acquisition approved pursuant to law shall also be identified as subjects of employment and social security. The specific criteria and term for the identification of subjects of the employment and social security of farmers affected by land acquisition shall be determined by municipal and county people’s governments based on local conditions. The procedure for the identification of subjects of the employment and social

security of farmers affected by land acquisition is: A farmer affected by land acquisition files an application personally; the members of the village collective economic organization, village committee or villager team discusses his/her eligibility; the town people’s government or sub-district office studies and publishes his/her eligibility; the labor and social security, and land and resources authorities review his/her eligibility, and report to the municipal or county people’s government for determination. (2) Highlight priorities: All local governments shall take the employment of farmers of employment age affected by land acquisition, the endowment insurance of farmers affected by land acquisition and the solution of basic livelihood issues of poor farmers affected by land acquisition as the priorities of their work, and ensure the medical treatment of farmers affected by land acquisition and the education of their children. Effective measures shall be taken to ensure that the standard of living of farmers affected by land acquisition is not reduced due to land acquisition, and that their long-term livelihoods are guaranteed. (3) Scientific measurement and calculation, unified planning, adaptation to local conditions, and steady progress: All local governments shall make unified planning of reform, development and stability, and the near-term, medium-term and long-term interests in local social and economic development, the connection between the employment and social security system for farmers affected by land acquisition with that for other urban residents, and the protection of the interests of farmers affected by land acquisition with different terms of land acquisition and reasons, and inside or outside the urban planning area on the basis of sufficient survey and study, detailed occupation data, and detailed basic information of the land and farmers affected by land acquisition; design practical and feasible specific measures for the employment and social security of farmers affected by land acquisition through scientific measurement and calculation, formulate definite operating procedures and strict working requirements, provide guidance for different types, and ensure steady and orderly progress. 3. Turn the registered permanent residence of farmers affected by land acquisition properly. Farmers affected by land acquisition are encouraged to move to towns. When farmers affected by land acquisition apply for the nonagricultural status in household registration, municipal and county (district) public security authorities shall go through the relevant formalities for them and register them at a nearby jurisdiction free of charge. Those having been turned into the nonagricultural status shall have the same rights to social security, education and residence as the local urban residents, and shall not be discriminated against by any entity or individual. 4. Promote the employment of farmers affected by land acquisition in diverse forms. Governments at all levels shall bring farmers affected by land acquisition into the urban employment system. Public benefit jobs shall be developed to place farmers affected by land acquisition. Where conditions permit, a certain proportion of land used for construction acquired by the state may be reserved for resettlement to absorb the employment of farmers affected by land acquisition. Land users shall give jobs suitable for farmers affected by land acquisition to them first. Farmers affected by land acquisition are encouraged to find jobs and start business independently. Unemployed farmers affected by land acquisition shall be brought into the reemployment service system actively, provided with free vocational training, advice on employment policies, employment information, vocational guidance and referral services; they shall be organized in a planned and orderly manner to participate in employment training and vocational skills training, so as to improve their employment skills and competitive power; and also provided with employment assistance and business startup guidance. 5. Ensure the social security of farmers affected by land acquisition properly

(1) Farmers affected by land acquisition that have been turned into the nonagricultural status and are eligible for the basic endowment insurance of enterprise employees, the basic medical and unemployment insurances for urban workers shall be brought into the scope of these insurances; those having livelihood difficulties and eligible for the minimum living guarantee for urban residents shall be brought into the scope of the minimum living guarantee for urban residents. If rural social endowment insurance and rural cooperative medical systems have been established, and the rural minimum living guarantee system is tried out locally, farmers affected by land acquisition that still have the agricultural status in household registration shall be brought into the scope of the corresponding insurances and guarantee; for those eligible for rural aid for the extremely poor and rural minimum living guarantee, their basic livelihood issues should be solved by providing them with rural aid for the extremely poor and rural minimum living guarantee. (2) Establish an endowment insurance system for farmers affected by land acquisition gradually. An endowment insurance system for farmers affected by land acquisition shall be established gradually throughout the province in about 3 years’ time. Farmers affected by land acquisition having attained 16 years of age upon land acquisition and not covered by urban basic endowment insurance may effect the endowment insurance of farmers affected by land acquisition voluntarily, the funds of which shall be raised jointly by the local government, the village (team) collective and individuals. The contribution of the government shall be disbursed from land transfer income and other incomes for compensated use of state land, and the contribution of the village (team) collective shall be disbursed from the land compensation, the operating income of the collective economic organization, and other incomes of the village (team) collective. The government and collective contributions shall be used to grant basic endowment insurance benefits, and the standard thereof shall not be less than 80 yuan per person-month. The personal payment shall be used as a supplement to endowment insurance benefits. All local governments may guide and encourage farmers to pay premiums to enrich endowment insurance funds and improve the level of endowment insurance. The starting age of receiving endowment insurance benefits shall be 60 years for men and 55 years for women. The finance, and land and resources authorities shall assist in transferring endowment insurance funds for farmers affected by land acquisition to the special account of social security funds opened by the local finance authorities timely and fully, while giving a notice to the labor and social security authorities of the same level. The personal payment, and the government and collective contributions shall be managed in separate account books, in which the latter shall be subject to municipal or county unified planning in principle. If the insured dies, the balance of the principal amount of his/her personal payment may be inherited with interest pursuant to law. Farmers affected by land acquisition eligible for the urban basic endowment insurance of enterprise employees may elect to effect such insurance. In this case, the personal payment to the endowment insurance of farmers affected by land acquisition shall be refunded to the insured at a time, and the endowment insurance of farmers affected by land acquisition shall be cancelled thereupon. 6. Strengthen the leadership of the employment and social security of farmers affected by land acquisition. Governments at all levels shall attach great importance to the employment and social security of farmers affected by land acquisition, and strengthen leadership practically. The leaders chiefly responsible shall take the lead personally. The labor and social security authorities are in charge of this work, and shall play a leading role practically, and the finance, land and resources, agriculture, civil affairs and public security authorities shall perform their respective responsibilities and work closely to ensure the employment and social security of farmers affected by land acquisition. The propaganda, supervision and inspection of the employment and social security of farmers affected by land acquisition shall be strengthened to protect the lawful rights

and interests of farmers affected by land acquisition pursuant to law. All municipal and county governments shall formulate the implementation procedures for the employment and social security of farmers affected by land acquisition according to these opinions and the practical situation, and promote the employment and social security of farmers affected by land acquisition steadily and actively. Where the endowment insurance system for farmers affected by land acquisition cannot be put into practice by 2008, the local people’s government shall explain the reason specifically to the provincial people’s government.

Anhui Provincial People’s Government June 12, 2005

 Hefei Municipality Interim Procedures of Hefei Municipality on the Endowment Insurance of Farmers Affected by Land Acquisition

He Zheng [2008] No.1 Chapter 1 General provisions Article 1 In order to further promote the endowment insurance of farmers affected by land acquisition, and protect the lawful rights and interests of farmers affected by land acquisition, these Procedures have been formulated in accordance with the Notice of the General Office of the State Council on Relaying the Opinion of the Ministry of Labor and Social Security for Instructing Work on Giving Occupational Training and Social Security to Farmers Whose Lands are Expropriated (Guo Fa Ban [2006] No.29), Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63) and the Procedures of Hefei Municipality on the Acquisition of Collectively Owned Land (Municipal Government Order No.136). Article 2 Subjects of the endowment insurance of farmers affected by land acquisition are those having attained the age of 16 years or more in the agricultural population to be resettled for land acquisition, but those already entitled to the endowment insurance of workers of urban enterprises or the benefit for retirement (separation) of public organs or institutions, or entitled to the basic endowment insurance for retirees of urban collective enterprises not insured are excluded. The agricultural population to be resettled for land acquisition referred to in the preceding paragraph shall be identified in accordance with the Procedures of Hefei Municipality on the Acquisition of Collectively Owned Land. Article 3 For candidates of the endowment insurance of farmers affected by land acquisition, the rural collective economic organization (or village committee or neighborhood committee) shall propose a list according to the policy, post it at the villager team affected by land acquisition for not less than 5 days, and then submit it to the Xiang/town people’s government (sub-district office) for examination and the district people’s government (development zone management committee) for confirmation. The list shall be approved by the municipal land and resources authorities together with municipal labor and social security, finance and public security authorities. Article 4 The municipal labor and social security authorities are the department in charge of the endowment insurance of farmers affected by land acquisition, responsible for policy-making for the endowment insurance of farmers affected by land acquisition, establishing premium payment records and managing personal accounts for farmers affected by land acquisition. The municipal land and resources, finance, public security, auditing and supervision authorities shall do well in the endowment insurance of farmers affected

by land acquisition collaboratively according to their respective duties. Chapter 2 Raising of insurance funds Article 5 Endowment insurance funds for farmers affected by land acquisition are brought into the special account of the municipal finance, and subject to management of the receipt and disbursement lines. The sources of funds include: (1) 70% of land compensation fees; (2) The resettlement subsidy from which the alimony and the subsidy for self job finding are deducted; (3) The interest on the funds and other value-added income; (4) Other funds available for use for the endowment insurance of farmers affected by land acquisition; and (5) When the funds from the above 4 sources are insufficient for payment, funds transferred by the government from the income from transfer of rights to use state land. Article 6 Endowment insurance funds for farmers affected by land acquisition consist of unified funds and personal account funds. 6,000 yuan/person will be transferred to personal accounts from the raised endowment insurance funds, while the remaining will be transferred to unified funds. Interest shall accrue on the principal of the personal account at the one-year bank interest rate for deposit and withdraw in lump sum for urban residents of the same period. Article 7 The entity applying for land use shall pay insurance funds for farmers affected by land acquisition to the special account of endowment insurance funds for farmers affected by land acquisition opened by the municipal finance authorities within 90 days after issue of the official reply on land acquisition. If insurance funds for farmers affected by land acquisition have not be paid in full, the land and resources authorities shall not go through the land supply formalities. Chapter 3 Insurance benefit Article 8 Those affecting the endowment insurance of farmers affected by land acquisition shall receive an endowment insurance benefit for farmers affected by land acquisition of the following month of attaining the age of 55 years for women or 60 years for men. Farmers affected by land acquisition who have attained or exceeded the stipulated age (55 years for women or 60 years for men) upon land acquisition shall receive endowment insurance benefits for farmers affected by land acquisition from the month following the actual time of land acquisition. Article 9 The standard of endowment insurance benefits for farmers affected by land acquisition shall be 260 yuan per capita-month, including a basic endowment insurance benefit of 210 yuan and a personal account endowment insurance benefit of 50 yuan. The basic endowment insurance benefit shall be paid from the unified funds, and the personal endowment insurance benefit from the personal account. After the personal account funds have been used out, the benefit shall be paid from the unified funds. The standard of endowment insurance benefits for farmers affected by land acquisition shall be adjusted with the level of the minimum living guarantee for urban residents accordingly. Article 10 Personal account funds can be inherited. If the insured dies before drawing endowment insurance benefits, the inherited amount shall be the principal amount of his/her personal account plus interest; if the insured dies during the period of receiving endowment insurance benefits, the inherited amount shall be balance of the principal of his/her personal account plus interest. Article 11 Farmers affected by land acquisition are encouraged to effect the basic endowment insurance of urban workers (hereinafter referred to as “the urban insurance”). If the insured is already employed, the employer shall go through the insurance formalities for him/her, and the endowment insurance premium shall be paid by the

employer and the insured jointly. For those effecting the urban insurance as freelancers, the government shall grant a social insurance subsidy of 100 yuan per capita-month for not more than 15 years. The subsidy amount shall be first paid from the personal account of endowment insurance funds for farmers affected by land acquisition, and any deficiency shall be paid form the unified funds. Article 12 If a farmer affected by land acquisition effecting the urban insurance has made payment for 15 years or more at his/her retiring age, he/she shall be entitled to urban insurance benefits as stipulated other than endowment insurance benefits for farmers affected by land acquisition. In this case, if there is any balance in the personal account of endowment insurance funds for farmers affected by land acquisition, such balance shall be paid to the insured at a time. If a farmer affected by land acquisition effecting the urban insurance has made payment for less than 15 years at his/her retiring age, he/she shall be entitled to endowment insurance benefits for farmers affected by land acquisition after refunding the social insurance subsidy already received. Chapter 4 Guarantee for farmers affected by land acquisition before the implementation of these Procedures Article 13 Farmers affected by land acquisition from January 1, 2004 to the effective date of these Procedures are subjects of guarantee identified in the Interim Procedures of Hefei Municipality on the Acquisition of Collectively Owned Land (He Zheng [2003] No.138) and the Notice on Relaying the Implementation Procedures of Hefei Municipality on the Basic Living Guarantee of Farmers Affected by Land Acquisition in the Urban Area (He Zheng Ban [2004] No.11); the raised guarantee funds shall be paid by each district (development zone) to the special account of the municipal finance for the endowment insurance funds for farmers affected by land acquisition at the standard of 18,000 yuan/person (the list of relevant persons shall be provided along) from which the guarantee expenses already paid to those entitled to this guarantee have been deducted at the standard stipulated in Document He Zheng Ban [2004] No.11. Personal accounts already established at the standard of 6,000 yuan/person (if no personal account has been established, it shall be established at 6,000 yuan/person, and the personal account balance of those entitled to this guarantee shall be 6,000 yuan – 50 yuan × number of months of receipt) shall be managed in accordance with the provisions in Paragraph 2 of Article 6 and Chapter 3 above. The standard of guarantee benefits shall be adjusted from 100 yuan per capita-month to 260 yuan per capita-month from May 2008. Farmers affected by land acquisition eligible for the urban insurance may effect the urban insurance in accordance with Articles 11 and 12 above, and be entitled to the corresponding subsidies and insurance benefits. Article 14 For farmers affected by land acquisition approved for land acquisition from October 8, 1988 to December 31, 2003, and identified in accordance with the prevailing policy then (excluding those having been resettled for employment or effected the urban insurance), subjects of insurance shall be identified in accordance with Article 3 above. Those having attained the age of receiving insurance benefits shall be granted insurance benefits at 260 yuan per capita-month from May 2008, and the funds needed shall be raised at the ratio of 3:1 by the municipal and district governments. Farmers affected by land acquisition eligible for the urban insurance may effect the urban insurance in accordance with Articles 11 and 12 above, and be entitled to the corresponding subsidies and insurance benefits. Chapter 5 Legal liabilities Article 15 No entity or individual shall report or receive basic endowment insurance benefits for farmers affected by land acquisition falsely; if this provision is violated, not only the corresponding amount shall be recovered pursuant to law, but

also such entity or individual shall be held legally liable. Article 16 If any civil servant neglects his/her duties, abuses his/her authorities or commits malpractice in the compensation for land acquisition and the endowment insurance of farmers affected by land acquisition, he/she shall be given an administrative punishment pursuant to law; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law. Chapter 6 Supplementary provisions Article 17 The staff and working funds required for the endowment insurance of farmers affected by land acquisition shall be secured by the government of the same level. Article 18 The Feidong, Feixi and Changfeng County Governments shall comply with these Procedures, and otherwise formulate their insurance standards and submit them to the municipal people’s government for reference. Article 19 These Procedures come into effect from May 1, 2008, and remain effective for 5 years. The Notice of the General Office of the Hefei Municipal People’s Government on Relaying the Implementation Procedures of Hefei Municipality on the Basic Living Guarantee of Farmers Affected by Land Acquisition in the Urban Area (He Zheng Ban [2004] No.11), and the Notice on Relaying the Implementation Rules for Farmers Affected by Land Acquisition Effecting the Basic Endowment Insurance of Urban Workers (He Zheng Ban [2004] No.10) shall be abolished thereupon.

 Chaohu Municipality Interim Procedures of Chaohu Municipality on the Endowment Insurance of Farmers Affected by Land Acquisition Chao Zheng [2007] No.47 Article 1 These Procedures have been formulated to promote our city’s industrialization, urbanization and modernization, protect the lawful rights and interests of farmers affected by land acquisition, promote harmonious social and economic development, and establish the endowment insurance system for farmers affected by land acquisition in accordance with the Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63). Article 2 Within the urban planning area of our city, all farmers affected by land acquisition having attained the age of 16 years and having not effected the basic endowment insurance of urban workers upon land acquisition shall be included in the endowment insurance of farmers affected by land acquisition. Article 3 Farmers affected by land acquisition referred to herein mean agricultural population losing all land or having a per capita arable area of less than 0.3 mu (in the unit of household) after land acquisition approved pursuant to law within the urban planning area. Agricultural population whose land is acquired before the implementation of these Procedures may effect the endowment insurance of farmers affected by land acquisition voluntarily. Article 4 The endowment insurance of farmers affected by land acquisition shall be implemented by the municipal labor and social security, land and resources, finance, civil affairs and public security jointly. Article 5 Endowment insurance funds for farmers affected by land acquisition shall consist of unified funds and personal account funds. Article 6 The unified funds shall consist of the contributions of the government and the village (team) collective. The contribution of the government shall be disbursed from land transfer income and other incomes for compensated use of state land; the standard is 10 yuan/m2 for

transfer of land, in which that for land for road construction 30 yuan/m2 and that for industrial land 10 yuan/m2. The contribution of the village (team) collective shall be disbursed from the land compensation received by the collective, deducted by the municipal land and resources authorities directly upon payment of land compensation fees, and paid directly to the special rural endowment insurance account of the municipal finance; the standard is 30% of the land compensation received by the collective. Article 7 The personal account shall consist of the voluntary payment of farmers affected by land acquisition and the interest thereon. There are two levels of personal payment: 3,600 yuan and 6,600 yuan. Farmers affected by land acquisition may select one of them voluntarily. Once the level is selected, it shall not be varied. Article 8 For farmers affected by land acquisition covered by endowment insurance, the starting age of receiving monthly endowment insurance benefits shall be 60 years for men or 55 years for women. Endowment insurance benefits for farmers affected by land acquisition shall include basic endowment insurance benefit and personal account endowment insurance benefit. The basic endowment insurance benefit shall be paid from the unified funds, and the personal endowment insurance benefit from the personal account. After the personal account funds have been used out, the benefit shall be paid from the unified funds. The standard of the endowment insurance benefit shall be as follows: (1) For personal payment of 3,600 yuan, 120 yuan per capita-month, in which the basic endowment insurance benefit is 90 yuan and the personal endowment insurance benefit is 30 yuan; (2) For personal payment of 6,600 yuan, 160 yuan per capita-month, in which the basic endowment insurance benefit is 105 yuan and the personal endowment insurance benefit is 55 yuan; (3) In case of no personal payment, for farmers affected by land acquisition attaining the age specified in the first paragraph of this Article after the implementation of these Procedures, a basic endowment insurance benefit of 80 yuan per capita-month shall be granted. Article 9 For farmers affected by land acquisition having not been insured before the implementation of these Procedures and attaining the age of 60 years for men or 55 years for women, the government and the village collective shall grant the basic endowment insurance benefit from the effective date of these Procedures, the standard of which shall not be less than 80 yuan per capita-month in principle, in which the government subsidy shall be 50 yuan per capita-month, and the subsidy of the village collective shall not be less than 30 yuan per capita-month in principle. Article 10 Farmers affected by land acquisition eligible for the basic endowment insurance of urban workers may effect the basic endowment insurance of urban workers. Starting from 1996, those who can have a payment period of 15 years or more upon attaining the age of 60 years for men or 55 years for women may elect to effect the basic endowment insurance of urban workers, and may make up the portion for which his/her statutory retiring age less than 15 years. The payment standard shall be the same as that for urban self-employers. Upon attaining the retiring age, the insured shall be entitled to the endowment insurance benefit as stipulated for the basic endowment insurance of urban workers. Article 11 Farmers affected by land acquisition effecting the basic endowment insurance of urban workers shall not be entitled to the endowment insurance benefit stipulated in these Procedures. Article 12 If the insured effects the basic endowment insurance of urban workers, the balance of his/her personal account can be refunded to him/her at a time. After the insured dies, the balance of his/her personal account can be paid to his/her legal heir or designated beneficiary at a time.

Article 13 The Juchao District Government shall determine the handling agency of the endowment insurance of farmers affected by land acquisition, which shall set up personal accounts for farmers insured in a unified manner. Article 14 The municipal land and resources authorities shall collect endowment insurance funds for farmers affected by land acquisition, which shall be paid at a time upon settlement of the endowment insurance formalities, withheld by the municipal land and resources authorities and transferred to the special finance account in a unified manner. Article 15 The municipal finance authorities shall be responsible for the management and disbursement of funds, which shall be subject to management of the receipt and disbursement lines in the special finance account on the principle of special fund for special use, and shall not be lent, embezzled or occupied. When the fund receipts are insufficient to cover disbursements, the government shall make up the deficiency from land income. Article 16 An endowment insurance reserve system shall be established for farmers affected by land acquisition. The reserve shall be withdrawn from annual land transfer income at the ratio of 3-5%, deposited to a special account and used as a supplement to endowment insurance benefits for farmers affected by land acquisition. Article 17 Endowment insurance funds can be deposited to a bank or used to purchase national debt for value maintenance or appreciation as stipulated, and shall not be used for direct investment, mortgage or guarantee. Article 18 The right to receive endowment insurance benefits for farmers affected by land acquisition shall not be transferred, falsely reported or received, if this provision is violated, not only the corresponding amount shall be recovered as stipulated, but also the violator shall be held liable. Article 19 Eligible farmers affected by land acquisition shall effect endowment insurance in the unit of village (community) or team, where the village committee (neighborhood committee) shall hold a plenary session or congress for deliberation and determination, post candidates for 7 days, complete a roster, submit it to the sub-district office for examination and to the Juchao District Government for approval. The insurance formalities of farmers affected by land acquisition shall be settled after the land acquisition plan is completed, when the sub-district office shall provide the relevant materials to the municipal land and resources authorities and the district handling agency. Article 20 If any person concerned neglects his/her duties, abuses his/her authorities or commits malpractice, so that the endowment insurance funds for farmers affected by land acquisition are not collected in full or are lost, embezzled, or basic endowment insurance benefits for farmers affected by land acquisition are deducted, he/she shall be given an administrative punishment pursuant to law; if such act constitutes a crime, the criminal liability shall be ascertained pursuant to law. Article 21 The specific procedures of each county/district shall be formulated based on its practical situation. Article 22 These Procedures come into effect from October 1, 2005.

Appendix 6:Public Participation and Minutes

Time March 23, 2009 Location Xianfeng Village, Cuozhen town Organizer Feidong County Highway Bureau Leaders of Feidong County Highway Bureau and Cuozhen Town Government, Participants Hohai University, ACVTC, 18 representatives of affected villagers (5 women) Topic Willingness for house demolition, land acquisition and resettlement The policy of property right exchange will apply to demolished houses. The main source of income of the farmers is employment. The affected households Details and will loss a small part of land only, and land acquisition has little impact on the results villagers, who expect cash compensation other than land reallocation. After receiving the compensation for land acquisition, they will attend technical training, readjust the structure of crop cultivation, deal with tertiary industries, etc. Time March 23, 2009 Location Zhaoguang Village, Cuozhen town Organizer Feidong County Highway Bureau Leaders of Feidong County Highway Bureau and Cuozhen Town Government, Participants Hohai University, ACVTC, 16 representatives of affected villagers (4 women) Topic Willingness for house demolition, land acquisition and resettlement The policy of property right exchange will apply to demolished houses. The main source of income of the farmers is employment. The affected households Details and will loss a small part of land only, and land acquisition has little impact on the results villagers, who expect cash compensation other than land reallocation. After receiving the compensation for land acquisition, they will attend technical training, readjust the structure of crop cultivation, etc. Time March 23, 2009 Location Qiaotouji Neighborhood Committee, Qiaotouji Town Organizer Feidong County Highway Bureau Leaders of Feidong County Highway Bureau and Cuozhen Town Government, Participants Hohai University, ACVTC, 17 representatives of affected villagers (6 women) Topic Willingness for house demolition, land acquisition and resettlement The village is expected to plan housing sites for self-demolition and self-building in a unified manner after house demolition; those unwilling to rebuild a house at the unified planning point can adjust housing sites themselves. The main source of income of the farmers is employment. The affected households Details and will loss a small part of land only, and land acquisition has little impact on the results villagers, who expect cash compensation other than land reallocation. After receiving the compensation for land acquisition, they will readjust the structure of crop cultivation, and may also develop diversified forms of tourism, such as rural tourism, according to the local planning. Time March 24, 2009 Location Zhonghan Neighborhood Committee, Zhonghan Town Organizer Juchao District Highway Bureau Leaders of Juchao District Highway Bureau and Zhonghan Town Government, Participants Hohai University, ACVTC, 19 representatives of affected villagers (5 women) Topic Willingness for house demolition, land acquisition and resettlement The village is expected to plan housing sites for self-demolition and self-building in a unified manner after house demolition; those unwilling to rebuild a house at the unified planning point can adjust housing sites themselves. The affected households will loss a small part of land only, and land acquisition has Details and little impact on the villagers, who expect cash compensation other than land results reallocation. There are many anchor chain manufacturers there, and most villagers wok at a nearby enterprise. After receiving the compensation for land acquisition, they will readjust the structure of crop cultivation, attend technical training, develop tertiary industries, etc. Time March 24, 2009 Location Jianhua Village, Tongyang Town

Organizer Juchao District Highway Bureau Leaders of Juchao District Highway Bureau and Zhonghan Town Government, Participants Hohai University, ACVTC, 19 representatives of affected villagers (5 women) Topic Willingness for house demolition, land acquisition and resettlement The village is expected to plan housing sites for self-demolition and self-building in a unified manner after house demolition; those unwilling to rebuild a house at the unified planning point can adjust housing sites themselves. The displaced households of the subproject will obtain a compensation of 4 times Details and the annual land output value loss, and the remaining compensation fees for land results acquisition will be allocated to the affected households evenly in the village collective. The land will be reallocated 4 years later. There are many anchor chain manufacturers there, and most villagers wok at a nearby enterprise. After receiving the compensation for land acquisition, they will readjust the structure of crop cultivation, attend technical training, etc. Time March 24, 2009 Location Qiyang Village, Tongyang Town Organizer Juchao District Highway Bureau Leaders of Juchao District Highway Bureau and Tongyang Town Government, Participants Hohai University, ACVTC, 18 representatives of affected villagers (5 women) Topic Willingness for house demolition, land acquisition and resettlement The village is expected to plan housing sites for self-demolition and self-building in a unified manner after house demolition; those unwilling to rebuild a house at the unified planning point can adjust housing sites themselves. Many villagers work outside, and the main source of income is employment. The Details and affected households will loss a small part of land only, and land acquisition has little results impact on the villagers, who expect cash compensation other than land reallocation. After receiving the compensation for land acquisition, they will readjust the structure of crop cultivation, cultivate strawberry and greenhouse vegetables, attend technical training, work outside, etc. Time March 24, 2009 Location Taihe Village, Tongyang Town Organizer Juchao District Highway Bureau Leaders of Juchao District Highway Bureau and Tongyang Town Government, Participants Hohai University, ACVTC, 15 representatives of affected villagers (4 women) Topic Willingness for house demolition, land acquisition and resettlement The village is expected to plan housing sites for self-demolition and self-building in a unified manner after house demolition; those unwilling to rebuild a house at the unified planning point can adjust housing sites themselves. Many villagers work outside, and the main source of income is employment. The Details and affected households will loss a small part of land only, and land acquisition has little results impact on the villagers, who expect cash compensation other than land reallocation. After receiving the compensation for land acquisition, they will deal with the wholesale of dried fruits and roasted seeds and nuts, attend technical training, work outside, readjust the structure of crop cultivation, cultivate strawberry, etc.

Appendix 7 Detailed Resettlement Budget

Feidong Juchao Expense No. Item Quantity Expense Total Proportion Remarks Unit yuan/unit (10,000 yuan/unit Quantity (Unit) (Unit) (10,000 yuan) yuan) 1 Collective land Mu 1123.5 1243.7 2367.1 45.5% 1.1 Land compensation Mu 678.3 752.2 1430.5 27.5% Paddy field Mu 11250 25.2 28.4 11250 84.8 95.4 123.8 2.4% Dry land Mu 11250 451.3 507.7 11250 417.8 470.0 977.7 18.8% Housing site Mu 7500 10.5 7.9 7500 7.4 5.6 13.4 0.3% Other rural land 7500 179.2 134.4 7500 241.6 181.2 315.6 6.1% for construction Resettlement 1.2 Mu 407.0 451.3 858.3 16.5% subsidy Paddy field Mu 6750 25.2 17.0 6750 84.8 57.2 74.3 1.4% Dry land Mu 6750 451.3 304.6 6750 417.8 282.0 586.6 11.3% Housing site Mu 4500 10.5 4.7 4500 7.4 3.3 8.1 0.2% Other rural land Mu 4500 179.2 80.6 4500 241.6 108.7 189.4 3.6% for construction 1.3 Crop compensation Mu 38.1 40.2 78.3 1.5% Paddy field Mu 800 25.2 2.0 800 84.8 6.8 8.8 0.2% Dry land Mu 800 451.3 36.1 800 417.8 33.4 69.5 1.3% Temporarily 2 Mu 295.5 356.2 651.6 12.5% occupied land Land occupied 2.1 temporarily for mu· year 12000 96.3 115.6 12000 116.1 139.4 255.0 4.9% borrow pits Other land Based on 2.2 occupied Mu 4000 117.8 94.2 4000 142.0 113.6 207.8 4.0% 2 years temporarily Land reclamation 2.3 Mu 4000 214.1 85.6 4000 258.1 103.2 188.9 3.6% fee

Feidong Juchao Expense No. Item Quantity Expense Total Proportion Remarks Unit yuan/unit (10,000 yuan/unit Quantity (Unit) (Unit) (10,000 yuan) yuan) Rural residential 3 284.4 203.9 488.3 9.4% houses Housing 3.1 262.4 188.9 451.3 8.7% compensation Masonry ㎡ 410 5933 243.3 410 4575 187.6 430.8 8.3% concrete structure Masonry timber ㎡ 260 170 4.4 260 34 0.9 5.3 0.1% structure Simple structure ㎡ 80 1842 14.7 80 53 0.4 15.2 0.3% Other 3.2 ㎡ 22.0 15.0 37.0 0.6% compensation Moving subsidy Person 500 312 15.6 500 226 11.3 26.9 0.5% Temporary Based on m2· month 2 7945 6.4 2 4662 3.7 10.1 0.2% resettlement fee 2 years 4 Ground annexes 2.1 3.4 5.5 0.1% Public toilets / 180 7 0.1 180 8 0.1 0.3 0.0% 10KV telegraph / 1500 9 1.4 1500 10 1.5 2.9 0.1% poles 380V telegraph / 100 22 0.2 100 11 0.1 0.3 0.0% poles Tombs / 300 7 0.2 300 27 0.8 1.0 0.0% Big trees (non / 10 46 0.05 10 400 0.4 0.4 0.0% fruit) Small trees (non / 6 21 0.01 6 125 0.1 0.1 0.0% fruit) Scattered fruit / 30 40 0.1 30 120 0.4 0.5 0.0% trees Total of Items 1-4 1705.4 1807.2 3512.5 67.5% Land acquisition 10,000 5 4% 1123.5 44.9 4% 1243.7 49.7 94.7 1.8% management fee yuan 6 Surveying, design 10,000 3% 1705.4 51.2 3% 1807.2 54.2 105.4 2.0%

Feidong Juchao Expense No. Item Quantity Expense Total Proportion Remarks Unit yuan/unit (10,000 yuan/unit Quantity (Unit) (Unit) (10,000 yuan) yuan) and research yuan expenses Administrative 10,000 7 5% 1705.37 85.3 5% 1807.18 90.4 175.6 3.4% expenses yuan Technical training 10,000 8 3% 1705.37 51.2 3% 1807.18 54.2 105.4 2.0% expenses yuan External monitoring 10,000 9 and evaluation 4% 1705.37 68.2 4% 1807.18 72.3 140.5 2.7% yuan expenses Subsidy for 10,000 10 1% 1705.37 17.1 1% 1807.18 18.1 35.1 0.7% vulnerable groups yuan Contingency 10,000 Sum of 11 10% 2023.2 202.3 10% 2146.1 214.6 416.9 8.0% expenses yuan Items 1-10 Land acquisition 10,000 12 285.9 335.1 621.0 11.9% taxes yuan Farmland yuan/ m2 2 317682.6 63.5 2 335083.42 67.0 130.6 2.5% occupation tax Farmland yuan/ m2 7 317682.6 222.4 8 335083.42 268.1 490.4 9.4% reclamation fee Total of items 5-13 806.0 888.6 1694.6 32.5% Total expenses 2511.4 2695.8 5207.2 100.0%

Appendix 8 :Resettlement Information Booklet

ADB Financed Anhui Integrated Transport Sector Improvement Project

Resettlement Information Booklet （RIB）

for S105 Longtang-Chaohu Section

Anhui, China

May 2009

A Brief description of the project

The S105 Longtang-Chaohu Section Reconstruction Project is one of the subprojects of the ADB financed project – Anhui Integrated Transport Sector Improvement Project. The subproject will promote the construction of the provincial capital economic circle with Hefei being the center and Lu’an and Chaohu being the wings, and drive the integrated development of Hefei, Lu’an and Chaohu Cities. It will have great significance in the construction of the provincial capital economic circle. Meanwhile, it will change the traffic conditions of the affected areas, reduce transport and resource development costs, strengthen the development of natural and tourist resources in the nearby areas, and promote economic development. The land acquisition and resettlement of the subproject involves 13 villages in 2 Xiangs/towns of Feidong County, Hefei City and 13 Villages in 3 Xiangs/towns of Juchao District, Chaohu City. The subproject will commence in 2009 and be completed in 2011, and the implementation plan for land acquisition, house demolition, compensation and resettlement will be put into practice in May 2009, and completed by January 2011. The estimated resettlement expenses of the subproject are 52.072 million yuan (based on prices of 2008), including basic expenses for land acquisition (occupation) and house demolition, relevant taxes and unexpected expenses, accounting for5.8% of the whole project budget. B Summary of resettlement impacts of the project

The main impacts of the S105 Longtang-Chaohu Section Reconstruction Project are permanent land acquisition, temporary land occupation and demolition of residential houses. In the subproject, 1,417.8 mu of collective land will be acquired, including 110 mu of paddy field (7.8%), 869.1 mu of dry land (61.3%), 17.9 mu of housing sites (1.3%) and 420.8 mu of other land (29.7%), affecting 6,472 people out of 1,616 households directly. 472.2 mu of land will be occupied temporarily, including 212.5 mu of land for borrow pits (45%) and 259.7 mu of other land (55%); in terms of land type, this includes 35 mu of paddy field (7.4%) and 437.2 mu of dry land (92.6%), affecting 1,712 people out of 428 households temporarily. In the subproject, 12,607m2 of residential houses will be demolished, including 10,508m2 (90.2%) in the masonry concrete structure, 204m2 (1.8%) in the masonry timber structure and 1,895m2 (15%) in the simple structure, affecting 538 people out of 140 households. In addition, the subproject will also affect 7 types of ground annexes, such as tombs, trees and telegraph poles.The key resettlement impacts of the project are shown in Table 1. Table 1 Key Resettlement Impacts of the Project Prefecture-level city Hefei City Chaohu City Total County/city Feidong Juchao K0+000 K16+300 K0+000- Pile No. K16+300 k41+350 k41+350 Xiangs/towns 2 2 4 Villages 13 13 26 Total 666.20 751.60 1,417.80 Permanent land acquisition Where: arable (mu) land and 476.50 504 980.00 garden Temporary land occupation (mu) 214.10 258.10 472.20 Demolition of rural residential houses (m2) 7,945.00 4,662.00 12,607.00 Directly Land Households 723 815 1,538 affected acquisition Population 2,898 3,272 6,170 population only

House Households 54 47 101 demolition Population 215 172 387 only Both land Households 25 14 39 acquisition and house Population 97 54 151 demolition Households 802 876 1,678 Total Population 3,210 3,498 6,708 Temporarily affected Households 149 279 428 population Population 596 1,116 1,712

C Legal Framework and Policies C.1 Policies basis The resettlement policies for the subproject are formulated based on ADB policies and the applicable laws, regulations and policies of China mainly, including: 1) ADB policies  Involuntary Resettlement, November 1995  Resettlement Operations Manual (OM/F2), October 2003  Gender and resettlement, February 2003 2) Laws, regulations and policies of the PRC  Land Management Law of the People's Republic of China (effective from January 1, 1999, amended on August 28, 2004)  Decision of the State Council on Deepening Reform and Exercising Strict Land Management (Guo Fa [2004] No.28) (October 21, 2004)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR Fa [2004] No.238) (November 3, 2004)  Measures for the Administration of Preliminary Examination of the Land Used for Construction Projects (Ministry of Land and Resources Order No.27) (November 1, 2004) 3) Provincial and local policies  Circular of the Anhui Provincial People’s Government on Doing Well in Compensation and Resettlement for Land Acquisition to Protect Farmers’ Lawful Rights and Interests Practically  Detailed Rules of Anhui Province for the Management of the Collection and Use of Farmland Reclamation Fees (Cai Zong [2001] No.1061)  Procedures of Anhui Province on the Implementation of the Land Management Law of the People’s Republic of China (December 1, 2002)  Circular of the Anhui Provincial Finance Department on Farmland Occupation Tax on Highways  Guidelines of the Anhui Provincial People’s Government on Doing Well in the Employment and Social Security for Farmers Affected by Land Acquisition (Wan Zheng [2005] No.63)  Interim Procedures of Tianchang Municipality on the Endowment Insurance of Farmers Affected by Land Acquisition (July 25, 2007).

C.2 Main Compensation Rate  Acquisition of collective land According to the Land Management Law of the People’s Republic of China, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, the policies and regulations of Anhui Province on the implementation of the Land Management Law of the People’s Republic of China, the compensation fees for the acquisition of arable land include land compensation, resettlement subsidy and

crop compensation. The compensation standards for the acquisition of rural collective land are shown in table 2. The compensation rate will be adjusted accordingly if the related policies of Anhui province is changed, the results will be presented in updated RP. Table 2 Compensation Multiples and Standards for Collective Land Acquisition Annual Multiple Compensation standard (yuan/mu) County Type of output Land Resettlement Crop Land Resettlement Crop /district land value compensation subsidy compensation Subtotal compensation subsidy compensation Subtotal (yuan/mu) Paddy field 1,125 10 6 / 16 11,250 6,750 500 18,500 Dry Feidong land 1,125 10 6 / 16 11,250 6,750 500 18,500 Housing site 750 10 6 / 16 7,500 4,500 0 12,000 Other 750 10 6 / 16 7,500 4,500 0 12,000 Paddy field 1,125 10 6 / 16 11,250 6,750 500 18,500 Dry Juchao land 1,125 10 6 / 16 11,250 6,750 500 18,500 Housing site 750 10 6 / 16 7,500 4,500 0 12,000 Other 750 10 6 / 16 7,500 4,500 0 12,000 Village Receiver collective Individuals Individuals

 Compensation for temporary land occupation According to the provisions of the state and Anhui Province on temporary land occupation, land temporarily occupied will be compensated for at the annual output value of the land for the period of impact. Compensation fees for temporary land occupation include compensation for young crops/ground annexes, and land reclamation fee. Arable land occupied temporarily for borrow pits will be compensated for at a time at 12,000 yuan/mu, while other temporarily occupied land at 4,000 yuan/mu· year. For land occupied temporarily, a land reclamation fee of 4,000 yuan/mu will also be paid. To reduce the impact of land acquisition on young crops, the subproject will be constructed after harvest or before seeding as the case may be. According to the construction design, the period of temporary land occupation is 2 years. The compensation standards for temporary land occupation are shown in table 3. Table 3 Compensation Standards for Temporary Land Occupation Land compensation fee Land occupied Other occupied Reclamation fee County Land type temporarily for temporarily (yuan/mu) borrow pits (yuan/mu· year) (yuan/mu) Feidong Arable land 12,000 4,000 4,000 Juchao Arable land 12,000 4,000 4,000

 Compensation standards for demolition of rural residential houses

The compensation standards for houses of different types shall be determined according to the pertinent provisions by reference to the actual prices of the main types of the affected houses and the compensation standards for similar past projects, as shown in table 4. A housing plot will be allocated prior to house demolition, meanwhile the location of new residential plots will be decided by villages and APs. If needed, the

Contractors will provide fill and level the sites for house construction and make connections to existing public utilities, and the cost would be integrated to the engineering cost. Table 4 Compensation Standards for Rural Residential Houses and Annexes Feidong Juchao Category Structural type Unit Unit price Unit price Remarks (yuan) (yuan) Masonry m2 410 410 House concrete 2 compensation Masonry timber m 260 260 Simple m2 80 80 Moving subsidy yuan/person 500 500 Based on the area Living Other 2 of the main house allowance for yuan/m · compensation 2 2 demolished, not transition month more than 18 period months

C.3 Entitlement matrix

The entitlement matrix is established in accordance with the applicable policies, as shown in Table 5.

Table 5 Entitlement matrix Degree of Type of impact Eligibility Compensation and resettlement policy impact 1) Land compensation, resettlement 26 villages and subsidy and compensation for collective communities in 5 properties will be paid directly to the village 1,417.8 mu of towns of Feidong collective economic organization or village collective land, County and committee. including 110 Juchao District Permanent mu of paddy land field, 869.1 mu acquisition of dry land, 17.9 2) resettlement subsidy will be paid mu of housing 6,472 people out

sites, 420.8 mu of 1,616 3) Ground annexes and crop compensation of other land households will belong to their respective owners.

1) For temporary land occupation for borrow pits, cash compensation will be 472.2 mu in 1,712 people out granted at a time; other temporarily total, in which of 428 occupied land will be compensated for borrow pits will households in 26 based on the period of occupation and the Temporary occupy 212.5 villages and amount of loss, including crop land mu; in terms of communities in 5 compensation and reclamation fee, with a occupation land type, 35 mu towns of Feidong maximum occupation period of 2 years. of paddy field County and 2) After the end of land occupation, the land and 437.2 mu of Juchao District will be reinstated to the original condition, dry land and appropriate economic compensation will be granted. 12,607 m2 of 538 people out of 1) House compensation: calculated at Demolition of houses will be 140 households replacement costs of different structural residential demolished, in 15 villages and types and quality standards. houses including 10,508 communities in 4 2) The affected people will receive a m2 in the towns of Feidong moving subsidy and a transition fee.

Degree of Type of impact Eligibility Compensation and resettlement policy impact masonry County and 3)A housing plot will be allocated prior to concrete Juchao District house demolition structure, 204 4) House registration fees are waived m2 in the masonry timber structure, and 1,895 m2 in the simple structure 1) Opportunities of prior employment are available, and 30% of women will have unskilled job opportunities. 2) The priority in receiving free technical All women in training is available. 6,500 persons will be Women / affected trained, with not less than 3,250 persons households (50%) for female . 3) The affected people can have access to relevant information during resettlement, and participate in consultation and resettlement. 4 people out of 1 1) Special allowances provided to the 1) Disabled household Disable persons, including 1 2) Priority of training and employment to disabled person labor force in these households 1) Skill training will be provided to 2 family 2) low-income or members, at least one by female. And poor households 215 people out of Priority employment (such as outside jobs (under the 52 household or work for the Project construction) will national poverty Vulnerable also be provided. line) groups 2) provided pension by local government 1) Skill training will be provided to 2 family members, at least one by female. And 151 people of 39 Priority employment (such as outside jobs 3)seriously households both or work for the Project construction) will affected affected by land also be provided. households acquisition and 2) When possible, replacement land should house demolition be arranged in the priority.

1) The affected special facilities will be compensated for by the implementing agencies to property owners, and then Special 7 types, such as restored by property owners, or restored by facilities and telegraph poles, Property owner the implementing agencies according to the ground trees former standard and size. annexes 2) The compensation for ground annexes shall be calculated in accordance with the pertinent provisions. Free of charge. All costs reasonably Complaints All affected / incurred will be disbursed from the and appeals people contingency expenses of the subproject.

D Resettlement Organization To ensure that resettlement is carried out successfully and the expected results are fulfilled, a top down organization must be set up at the implementation stage to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that necessitates the assistance and collaboration of multiple departments, the communications, land and resources, and finance authorities will participate and assist in the implementation of resettlement. Each of the affected

towns and villages has 1-2 leaders responsible chiefly for the assistance in resettlement. The agencies responsible for land acquisition and house demolition in the subproject include:  APCD Foreign-funded Project Management Office  AHAB  Municipal/county (including county-level municipal) highway administration bureaus (headquarters)11  Town people’s governments  Village committees (neighborhood committees)  Project design agency  Independent monitoring and evaluation agency  Other agency: Land Resource Bureau, House Demolition Office, Women Federation and Labor Bureau, etc. E Complaints and appeals Public participation is encouraged throughout the preparation and implementation of the Resettlement Action Plan. Therefore, it is likely that great disputes will not arise. However, some unexpected issues may arise from this process. In order to address such issues and ensure the successful construction and land acquisition of the subproject, a transparent and effective appeal channel has been established. The basic procedure is as follows: Stage 1: If any right of any displaced person is infringed upon in any aspect of land acquisition and resettlement, he/she can report this to the village committee. Either the committee or the displaced person may seek for a solution from the town government through consultation. After receipt of an appeal, the town government will record it, and study a solution together with the committee and the displaced person within 2 weeks. Stage 2: If the complainant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Tianchang Highway Administration Bureau (Headquarters) after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the complainant is dissatisfied with the disposition of Stage 2, he/she may file an appeal to AHAB after receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: f the complainant is still dissatisfied with the disposition of AHAB, he/she may file an appeal to the administrative authorities with competent jurisdiction level by level for arbitration in accordance with the Administrative Procedure Law of the People’s Republic of China after receiving such disposition. Stage 5: If the complainant is still dissatisfied with the arbitration award, he/she may bring an action to a civil court in accordance with the Administrative Procedure Law after receiving such award. All agencies concerned will accept the affected people’ complaints and appeals free of charge, and all costs reasonably incurred will be disbursed from the contingency expenses of the subproject. At the whole construction stage, this appeal procedure will remain effective so that the affected people can use it to solve relevant issues. The above appeal channel and the right of appeal will be notified to the displaced persons through the participation process at a public meeting and the resettlement information booklet. In the meantime, appeal proceedings will be

11 A construction headquarters will be set up for the subproject based on the highway administration bureau and in conjunction with the land and resources bureau, finance bureau, auditing bureau, demolition office, communications bureau and construction bureau to be responsible for resettlement.

published to the affected population people through media. F Implementation schedule of resettlement The overall progress plan for resettlement shall be developed based on the progress of land acquisition. However, this schedule shall be adjusted accordingly if the overall progress deviates. Details are shown in table 6.

Table6 Implementation Schedule of Resettlement Responsible No. Resettlement Tasks Target Timing Status Agency 1 Disclosure - S105 26 AVs PMO & AHAB 30 June 2009 RPs posted on ADB 1.2 IA, PMO & ADB July 2009 websites 2 Resettlement Plans & Budgets 2.1 Approval of 4 RPs & CNY52.072 budgets (and compensation APG and PMO July 2009 million rates) 2.2 Village rehabilitation plans 26 villages VCs Dec. 2009 2.3 Update RP after / IA and PMO Jan. 2010 design/DMS 3 Detailed Measurement Surveys (DMS) 3.1 S105 AHAB 30 Nov. 2009 4 Compensation Agreements 4.1 Village land agreements 26 villages LRBs 28 Feb. 2010 4.2 Household land 1616 AFs VCs 30 June 2010 agreements 4.3 House/property 140 AFs LRBs Mar.-Nov. 2010 agreements 5 House Relocation 5.1 Selection & approval of 140 AFs Town, VCs & AFs Aug.-Dec. 2009 sites 5.2 Site infrastructure 15 sites Town & VCs Mar -.Oct. 2010 preparation 5.3 House demolition 140 houses Contractor/AFs Mar.-Aug. 2010 5.4 New house construction 140 houses VC or AFs Mar.-Dec. 2010 5.5 Moving into new houses 140 AFs AFs July-Dec. 2010 6 Implementation of Rehabilitation Measures 6.1 Land compensation payments to AFs and land 26 villages Towns & VCs Mar.-June 2010 adjustment (where applicable) 6.2 Implement village 26 villages VCs Jan.-Dec. 2010 rehabilitation plans 6.3 Advice for income Towns, VCs, Labor, restoration, starting 1616AFs Apr.-Aug. 2010 ACF business & jobs 6.4 Implement Training 1616AFs Labor Offices May-Dec. 2010 programs 6.5 Identify vulnerable AF and Labor & Social implement support ~50 AFs Feb.-June 2010 Security, PMO measures 6.6 Identifying and hiring AF for PMO, Labor, Apr. 2010 to ~2000 APs project construction contractors Dec. 2012 7 Resettlement Capacity Building 7.1 Training for ACIG, AHAB & 12 people ADB Dec. 2009 LRB 7.2 Training for county & town 450 officers and PMO and LRB Jan.-Feb. 2010 officials and village leaders leaders 8 Monitoring & Evaluation 8.1 Baseline surveys One RP Monitor 31 Dec. 2009 8.2 Set-up internal supervision As per RP PMO & IA 31 Dec. 2009 8.3 Contract external monitor One PMO 30 Nov. 2009 8.4 Internal monitoring reports Quarterly (as PMO & IA Commencing

Responsible No. Resettlement Tasks Target Timing Status Agency required) 31 Mar. 2010 8.5 July 2010 1stReport External monitoring reports Semi-annual Monitor Jan. 2011 2nd Report July 2011 3rd Report 8.6 Jan. 2012 1stReport External evaluation reports Annual Monitor Jan. 2013 2nd Report 8.7 Resettlement Completion One Reports IA & PMO June 2013 Reports 9 Documentation of Consultation IA Ongoing 10 Documentation of Grievances IA Ongoing 11 Flow of Land Compensation and Resettlement Funds 11.1 - To IAs Initial funds Feb. 2010 11.2 - To villages Most of funds IA Mar.-June 2010 11.3 - To households Most of funds IA VCs Mar.-Aug. 2010 12 Commence Land Acquisition and Civil Works 12.1 S105 AHAB 31 Mar. 2010 AF=affected family; AP=affected person; AV=affected village; IAs=Implementing Agencies; APG=Anhui Province Government; PMO=Project Management Office; APCD=Anhui Provincial Communications Department; AHAB=Anhui Highway Administration Bureau; LAR=land acquisition and resettlement; RIB=resettlement information booklet; RP=resettlement plan; VC=village committees.