Liaoyuan Water Supply and Drainage Project Resettlement Plan

Jilin Water Supply and Sewerage Development:

Liaoyuan Drainage and Water Supply Project

RESETTLEMENT PLAN

Liaoyuan City Water Supply Company

Prepared with the assistance of

China Northeast Urban Infrastructure Engineering Design and Research Institute

April 2005

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 7

1. INTRODUCTION...... 9

1.1 PROJECT BACKGROUND ...... 9 1.2 DESCRIPTION OF THE PROJECT...... 9 1.2.1 Geographic Location...... 9 1.2.2 Scope of the Project...... 9 1.2.3 Budget and Implementation Schedule ...... 15 1.2.4 Socioeconomic Benefits of the Project ...... 15 1.3 SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACTS ...... 15 1.4 PREPARATION OF RP...... 15 1.4.1 RP Preparation ...... 16 1.4.2 RP Preparation Method and Process...... 17

2. SOCIOECONOMIC PROFILE OF THE AFFECTED AREAS AND POPULATION ...... 18

2.1 SOCIOECONOMIC SURVEY ...... 18 2.2 SOCIOECONOMIC SITUATION OF THE PROJECT AFFECTED AREA...... 18 2.3 SOCIOECONOMIC SITUATION OF AFFECTED COMMUNITIES ...... 19 2.4 SOCIOECONOMIC SITUATION OF THE AFFECTED HOUSEHOLDS...... 19 2.4.1 Household Population ...... 19 2.4.2 Age Distribution ...... 20 2.4.3 Educational Level...... 20 2.4.4 Household Income and Expenditure ...... 20 2.4.5 Knowledge and Opinions of APs ...... 20

3. PROJECT IMPACTS...... 22

3.1 MEASURES TAKEN TO AVOID OR MINIMIZE LAND ACQUISITION AND RESETTLEMENT IMPACTS .22 3.1.1 During Design Phase...... 22 3.1.2 During Implementation Phase ...... 23 3.2 IMPACTS OF LAND ACQUISITION AND RESETTLEMENT ...... 23 3.2.1 Inventory Survey...... 23 3.2.2 Permanent Land Acquisition...... 24 3.2.3 Temporary Land Occupation ...... 24 3.2.4 Affected Ground Attachments...... 25

4. LEGAL FRAMEWORK AND POLICIES...... 27

4.1 APPLICABLE LAR LAWS, REGULATIONS AND POLICIES...... 27 4.1.1 DOCUMENT 28: STATE COUNCIL DECISION TO DEEPEN REFORM AND STRICTLY ENFORCE

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LAND ADMINISTRATION, ISSUED BY STATE COUNCIL, OCTOBER 2004 ...... 27 4.1.2 Land Administration Law of PRC, 1998...... 28 4.1.3 Land Management Regulation of Jilin Province (revised version)...... 29 4.2 ADB’ INVOLUNTARY RESETTLEMENT POLICY...... 30 4.3 DOCUMENT 28 TO BE OPERATIONALIZED UNDER THE PROJECT...... 32 4.4 COMPENSATION STANDARDS...... 33 4.4.1 Eligibility...... 33 4.4.2 Compensation Principles ...... 33 4.4.3 Compensation Standards...... 33 4.4.4 Entitlement Matrix...... 34

5. REHABILITATION PLAN ...... 36

5.1 PRINCIPLES OF REHABILITATION PLAN ...... 36 5.2 REHABILITATION PLAN...... 36

6. ORGANIZATIONAL STRUCTURE AND RESPONSIBILITIES ...... 38

6.1 PARTICPATING AGENCIES ...... 38 6.2 ORGANIZATIONAL STRUCTURE FOR RESETTLEMENT IMPLEMENTATION...... 38 6.2.1 Institutional Arrangements ...... 38 6.2.2 Institutional Responsibilities...... 38 6.3 MONITORING INSTITUTIONS...... 41 6.4 RESETTLEMENT ADMINISTRATION SYSTEM...... 41 6.5 STAFFING AND FACILITIES ...... 43 6.6 TRAINING PLAN FOR RESETTLEMENT OFFICERS ...... 43

7. PUBLIC PARTICIPATION ...... 44

7.1 PUBLIC PARTICIPATION STRATEGY ...... 44 7.2 METHODS AND MEASURES OF PUBLIC PARTICIPATION...... 44 7.3 PUBLIC PARTICIPATION DURING RP PREPARATION ...... 44 7.4 INFORMATION DISCLOSURE...... 45 7.4.1 Resettlement Information Brochure...... 45 7.4.2 Distribution of the Resettlement Plan...... 46 7.5 PUBLIC PARTICIPATION PLAN DURING RP IMPLEMENTATION...... 46

8. GRIEVANCE PROCEDURES...... 48

8.1 POSSIBLE GRIEVANCES AND SOLUTIONS...... 48 8.2 GRIEVANCE CHANNELS AND PROCEDURES ...... 48

9. MONITORING AND EVALUATION...... 50

9.1 INTERNAL MONITORING...... 50 9.1.1 Purposes and Tasks of Internal Monitoring ...... 50 9.1.2 Personnel Arrangement...... 50

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9.1.3 Content of Monitoring ...... 51 9.1.4 Implementation Procedures...... 51 9.2 EXTERNAL MONITORING ...... 51 9.2.1 Objectives and Tasks...... 51 9.2.2 External Monitoring Agency...... 52 9.2.3 Major Indicators of Monitoring and Evaluation...... 52 9.2.4 Special Considerations...... 52 9.2.5 Methods of Monitoring and Evaluation...... 53 9.2.6 Monitoring and Evaluation Report ...... 53

10. COST ESTIMATES...... 55

10.1 BASIS OF COST ESTIMATES...... 55 10.2 COMPENSATION AND LAR COSTS...... 55 10.3 ANNUAL BUDGET...... 56 10.4 FLOW OF FUND ...... 56

11. IMPLEMENTATION SCHEDULE OF RESETTLEMENT PLAN ...... 58

11.1 PRINCIPLES...... 58 11.2 SCHEDULE OF RP IMPLEMENTATION ...... 58

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ABBREVIATIONS AND ACRONYMS

ADB - Asian Development Bank APs - Affected Persons FSR - Feasibility Study Report IMA - Independent Monitoring Agency LA - Land Acquisition LAB - Land Administration Bureau LAR - Land Acquisition and Resettlement LMG - Liaoyuan Municipal Government NUIEDRI - Northeast Urban Infrastructure Engineering Design and Research Institute NPV - Net Present Value PLG - Project Leading Group PMO - Project Management Office PPMO - Provincial Project Management Office PPTA - Project Preparatory Technical Assistance RP - Resettlement Plan SC - Street Committee VC - Village Committee WSC - Water Supply Company WTP - Water Treatment Plant

UNITS

CNY - Chinese Renminbi mu - area; 15 mu = 1 ha ha - area; 1 ha = 15 mu m2 - square meter

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ENDORSEMENT OF THE RESETTLEMENT PLAN

The Liaoyuan City Water Supply Company has received approval to construct the Liaoyuan Water Supply and Drainage Project, which is expected to commence construction in July 2005 and be completed by December of 2006. Liaoyuan Municipal Government, through Ministry of Finance, has requested a loan from the Asian Development Bank (ADB) to finance part of the project. Accordingly, the Project will be implemented in compliance with ADB social safeguard policies. This Resettlement Plan (RP) represents a key requirement of ADB and will constitute the basis for land acquisition (LA), house relocation, compensation and resettlement. The RP complies with PRC laws and local regulations but includes some additional enhancement measures and implementation and monitoring arrangements to ensure high quality resettlement results.

Liaoyuan Municipal Government and the Liaoyuan City Water Supply Company hereby endorse the contents of the Resettlement Plan dated January 2005 and ensure that funds will be made available as stipulated in the budget. The Liaoyuan City Water Supply Company has discussed the RP with relevant local officials and has obtained their concurrence. Overseas Funds Administrative Office of Liaoyuan Municipal Government was authorized as the responsible agency to manage the implementation of the Project and related resettlement activities.

Approved on XXXXXX by:

Deputy Mayor, Liaoyuan Municipal Government (original signed)

Director, Liaoyuan City Water Supply Company (original signed)

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EXECUTIVE SUMMARY

The Liaoyuan Water Supply and Drainage Project comprises of the components, including: i) upgrading two WTP with design capacity of 110,000 m3/d; ii) 53.1 km pipelines; iii) 17 pumping stations; iv) 12 km new sewer pipes and upgrading drainage pipes; and v) 8.3 km open channels and box culverts. The Project owner is Liaoyuan City Water Supply Company (WSC).

The construction of the booster pumping stations and the flood mitigation works will involve permanent land acquisition. The construction of water supply and drainage networks will occupy land temporarily. In total, 14.196 ha of collective and community land will be taken permanently for the secondary booster pumping stations and flood mitigation works. The construction of water supply and drainage networks will acquire 39.60 ha of land temporarily. In addition, auxiliaries, and infrastructure and special facilities will also be affected.

In order to avoid or minimize land acquisition and resettlement (LAR), there was close consultation with the local officials and village committees (VCs) and street committees (SCs) during the preliminary and final Feasibility Study stages.

The compensation of the permanent land loss is based on the Land Administration Law of PRC in 1998, Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October 2004, and Land Management Regulation of Jilin Province. The RP was prepared to comply with ADB’s Policy on Involuntary Resettlement. Based on the consultations with local governments and those affected, and general practice in Liaoyuan City, the resettlement principles established for the Project are: (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives; (ii) land temporarily occupied and the period for disruption are to be kept to a minimum; (iii) implementation of the resettlement program properly, comply with related compensation policies; (iv) resettlement plan (RP) should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans; (v) APs should be consulted for the development of the RP and for the compensation rates; (vi) RP should be coordinated with such things as regional development, resource exploitation, economic development and environmental protection; and (vii) practical and feasible measures should be formulated to restore the affected items.

The people affected have been notified about the key elements of the RP. On various occasions during meetings, interviews, focus group discussions, public consultation workshops, and community consultation meetings, local representatives have participated in the planning and concerns have been integrated into the RP. The resettlement information booklet was distributed to affected villages/streets and households in December 2004. The RP was approved by Liaoyuan City Government and was provided to VCs and SCs in January 2005, and will be posted on the ADB website in April 2005. The Liaoyuan City PMO and Liaoyuan City WSC will

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For permanent land acquisition, the compensation will be paid in cash to the affected village and street committees. Compensation for temporary land use will be paid to the municipal civil engineering department, and compensation for ground attachments will be paid to the affected owners.

The construction of the Project will acquire no farmland and no persons will be affected. Therefore, no production and income loss will be caused to the affected households, and no rehabilitation plan is required for the Project. The loss of open space and green space will be scattered and small, which will have minor impacts on their living environment of the surrounding residents. However, the compensation for permanent land acquisition will be paid to the affected VCs and SCs to be used for re-greening the space. The impact of temporary land occupation for urban roads will cause some disturbance/easement for the pedestrian. During the Project design phase, the local communities have been consulted to find ways to avoid or minimize the disturbance through the socioeconomic survey and stakeholder and community meetings. The pipe-jacking method will be used as much as possible to avoid or minimize the impacts. The pipeline will be constructed section by section, which will cause shorter time of interruption to the road disruption for about one month. No individual households and businesses will be affected. After the completion of the pipeline construction, the temporarily affected land will be restored when they are returned. The compensation fee for the temporarily occupied land will be paid to the municipal civil engineering administration department. Compensation for ground attachments will be paid to respective owners, who will use the compensation for re-establishment.

The cost estimate for land acquisition and resettlement is CNY 2.08 million or US$ 0.25 million in 2005 prices, including compensation for permanent land acquisition, temporary land use, infrastructure and special facilities, relevant land taxes, M&E and other costs, and contingency. The land acquisition and resettlement activities will occur between June 2005 and August 2006. Construction will not take place before the APs are fully compensated. Internal and external monitoring of the RP implementation will be conducted to ensure successful implementation of the RP.

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1. INTRODUCTION

1.1 Project Background

The Liaoyuan Drainage and Water Supply Project is one of the major infrastructure projects to improve the economy of the city and to enhance the living conditions of local residents. Liaoyuan City is located in the south of Jilin Province, situated between Changbai Hill and Songliao Plain. In recent years, with the development of the national economy, the economic development and urban construction of Liaoyuan City have greatly changed, and the living standards and demand of water supply became much higher. Meanwhile, there are basic water supply networks, but the water pipelines are old and required to be upgraded. Currently there are 334 booster pumping stations situated in residential areas. These pumping stations are owned by different companies. Centralized management and control cannot be achievable. In addition, there are a lot of problems in the existing old drainage systems, of which most are combined systems for storm and sewage discharge. The drainage systems are also old and lack of maintenance. Moreover, the pipe sizes are small and inadequate to handle the flows. Because of steep terrain of Liaoyuan City, lots of water drained to Banjie River and Tongliao River. Besides, owing to the frequent activities of people at the hillside, damages to slopes are serious and this results in flooding problems to the City.

Nowadays, the water supply and drainage infrastructure of the City is poor and affects the economic development. It is believed that the improvement of above mentioned infrastructure could greatly enhance the development of the City.

1.2 Description of the Project

1.2.1 Geographic Location

Liaoyuan City is a low lying hilly area, located at the central southern area of Jilin Province, where the east longitude is from 124°56′ to 125°50′, north latitude is from 42°18′ to 43°14′. The City is 150 km in length and 82.2 km in width, covering an area of 5,123 km2. The general location of the Project is shown in Figure 1.1.

1.2.2 Scope of the Project

The scope of the Water Supply and Drainage Project of Liaoyuan City comprises of the following components:

i) Rehabilitating the existing Longshan and Hebin water treatment plants to restore to the original design capacity of 30,000 m3/d and 80,000 m3/d, respectively;

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ii) Rehabilitating 2.01 km 400 mm to 600 mm in diameter water distribution pipelines, and constructing 53.07 km 200 mm to 1,100 mm in diameter new water supply network; iii) Building 17 new booster pumping stations for water supply in the urban area to replace 334 old small pumping stations; iv) Constructing 11.99 km sewer mains, 300 mm to 1,200 mm in diameter; and v) Establishing mountain torrents control and protection measures in eight urban built-up areas.

The layout of the water supply network, sewerage network and flood mitigation works is presented in Figures 1.2, 1.3 and 1.4, respectively.

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1.2.3 Budget and Implementation Schedule

The estimated total investment of the Project is about CNY235.90 million, including CNY12.35 million for rehabilitating Longshan Water Treatment Works, CNY16.59 million for the rehabilitation of Hebin Water Treatment Plant, CNY43.07 million for the flood mitigation works, CNY91.88 million for the upgrading water supply pipelines, CNY19.33 million for the rehabilitation of drainage networks and CNY52.69 million for the construction of booster pumping stations. The construction period is estimated to be about two years. The Project owner is Liaoyuan City Water Supply Company.

1.2.4 Socioeconomic Benefits of the Project

The Project has large social and economic benefits. After the project is built, water shortage and flooding problem will be relieved. It will also help to improve the environmental conditions by reducing pollution which in turn will enhance the living conditions of the local people, socio-economic conditions and environment for investment. It will also play a very important role to promote the industrial development and urban construction of the City. Therefore the Project construction is very necessary and feasible.

Meanwhile, the result of the financial analysis shows that the rate of internal return is above 6%; the net present value (NPV) is more than 0; the static investment return period is less than 15 years; and the other financial indicators meet the requirements. Therefore, the Project is considered as financially viable and of low risk.

1.3 Scope of Land Acquisition and Resettlement Impacts

The scope of the Project impacts is mainly determined on the basis of the feasibility study report (FSR). The construction of booster pumping stations and the flood mitigation works will involve permanent land acquisition. The construction of water supply and drainage networks will occupy land temporarily. In total, 14.196 ha of collective and community land will be taken permanently for the booster pumping stations and flood mitigation works. The construction of water supply and drainage networks will acquire 39.60 ha of land temporarily. In addition, auxiliaries, infrastructure and special facilities will also be affected.

1.4 Preparation of RP

In line with the ADB’s Involuntary Resettlement Policy and the relevant laws, regulations and guidelines issued by the governments of the People’s Republic of China, Jilin Province and Changchun City, the RP has been prepared by the China

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Northeast Urban Infrastructure Engineering Design and Research Institute (NUIEDRI).

1.4.1 RP Preparation

(1) Basis of RP Preparation

z Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, October 2004 z Land Administration Law of PRC z Implementation Regulation for Land Administration Law of PRC z Land Administration Regulation of Jilin Province z ADB’s Policy on Involuntary Resettlement z FSR of Liaoyuan Water Supply and Drainage Project, October 2004 z Measurement survey between August and September, 2004 z Sample socioeconomic survey of affected households between August and September 2004 z Discussion with village leaders and affected peoples (APs) z Focus group discussion during the ADB PPTA phase z Consultation workshops on environment, including resettlement issues z Community meetings on the Resettlement z Consultation results from distribution of Resettlement Information Booklet and RP

(2) Goal of RP Preparation

z Using all possible measures, such as engineering, technical and economic measures, to avoid or reduce the impacts of land acquisition and house demolition. When it is not avoidable, measures should be taken to reduce the impact to the production and livelihood of local residents as much as possible. z There will be traffic disruption to some streets. The communities should be consulted to find ways to avoid or minimize disturbances. z Resettlement Plan is based on the land acquisition indexes and the compensation standard, and the goal is to increase or rehabilitate the living standards of the APs, and at least ensure they are not worse-off. z APs are encouraged to participate in the RP preparation, implementation, and monitoring and evaluation, in particular women. z Women’s rights and interests should be fully taken into consideration of the project.

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1.4.2 RP Preparation Method and Process

The RP is prepared on the basis of the following methods and process:

(1) The Liaoyuan Project Management Office (PMO) and Liaoyuan City Water Supply Company (WSC) confirm the scope of LAR impacts initially based on the FSR. (2) The Liaoyuan PMO and Liaoyuan City WSC confirmed the scope of impacts for permanent land acquisition, temporary land occupation, and affected ground attachments including auxiliaries, infrastructure and special facilities. The NUIEDRI collected and analyzed the data. (3) The Liaoyuan PMO and Liaoyuan City WSC in association with relevant organizations collected related policies and regulations, and formulated compensation standards of land acquisition and resettlement as well as rehabilitation plan, with the technical support of the design institute. (4) The draft RP was submitted to the Provincial PMO, Liaoyuan PMO, Liaoyuan City Land Administration Bureau (LAB), the ADB PPTA Consultants and ADB for comments. Revisions were made on the basis of the comments received, and the RP was finalized. (5) The RP was prepared based on consultation with the APs, in particular women.

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2. Socioeconomic Profile of the Affected Areas and Population

2.1 Socioeconomic Survey

The main task of the socioeconomic survey is to identify the quantitative and qualitative indexes of various inventories affected within the scope of the project. For the purpose of calculating the losses resulting from the land acquisition of this project, the socioeconomic assessment and evaluation was carried out, which covered the definition of the Project scope, investigation into the socioeconomic impacts, preparation of the RP for the households and populations to be affected by the permanent land acquisition and temporary land occupation, cost estimate of resettlement, as well as the implementation of the RP, and performance monitoring and evaluation.

The first draft of the FSR on the Liaoyuan Water Supply and Drainage Project was completed in July 2004. From August to September 2004, the Liaoyuan PMO and Liaoyuan City Water Supply Company organized the data collection and identification of the quantitative impacts of land acquisition and resettlement to assess the various impacts and to prepare the RP.

With active participation of the APs, investigation and documentation of the quantitative data on households to be affected and the socioeconomic profile of the APs have been made. During the socioeconomic investigation, all the households and individuals affected were actively involved in the investigation.

Full investigation and analysis of the LAR impacts resulting from land acquisition and resettlement, and the socioeconomic profiling for the five (5) streets of Xinxing, Fuzhen, Taian, Dengta, and Zhanqian in the Longshan district and Xi’an district to be affected directly by the Project has been conducted. Consultations through interview were held with the Liaoyuan Government on the compensation standards. The outcome of the consultation has been used as the basis of the RP preparation.

In addition, based on the comments made by ADB PPTA Consultants on the RP, the Liaoyuan PMO and Liaoyuan City WSC had surveyed 20 households in the Project affected areas. Through the questionnaire survey, information on the socioeconomic status of the APs, such as household and population characteristics, and income and expenditure of APs, has been obtained.

2.2 Socioeconomic Situation of the Project Affected Area

The City of Liaoyuan includes Dongfeng and Dongliao counties, Longshan and Xi’an

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districts. There are 45 townships, 543 administrative villages, with a total population of 1.26 million. The urban area of the city is 206 km and the constructed urban areas are 35 km, with 470 thousand persons.

As an industrial city, Liaoyuan has 33 industries, including textile, clothing, light industry, plastic, machinery, chemical, pharmaceutical, coal, etc. Beside the resource of coal, there is iron, manganese, limestone, granite and so on.

2.3 Socioeconomic Situation of Affected Communities

Two (2) communities that will be affected most are Jiling Community within the Lonshan Booster Pumping Station and Fuan Community within Fu Township Drainage Area. The total population of Jiling Community is 8,105, of which 3,920 are males and 4,185 females. The total labor force is 5,632. The total land area of the Community is 12 hectares. The average income of the residents is CNY 2,644 per capita per year, and expenditure CNY 2,248 per capita per year.

The Fuan Community has a population of 8,591 (4,312 males and 4,279 females). The total labour force is 6,032 persons. The total land area is 143.5 ha. The average income of the residents is CNY 2,240 per capita per year, and expenditure CNY 1,848 per capita per year.

2.4 Socioeconomic Situation of the Affected Households

In order to collect information of the economic situation of the households in the Project affected area, the PMO investigation group surveyed 20 households in total, including 6 households who are living in the surrounding areas of the booster pumping stations and flood mitigation works and fourteen (14) households who are living in the surrounding areas affected by temporary land occupation for the construction of flood mitigation works and transmission pipelines were selected for the survey through random sampling.

2.4.1 Household Population

Of the total 20 families surveyed, there are 65 family members, including 5 agricultural population accounting for 7.69%, 28 female accounting for 43.1%, 8 student accounting for 12.3%, and 11 elders accounting for 16.9%. No floating population and illegal occupants have been identified.

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2.4.2 Age Distribution

Of the 20 surveyed households or 65 persons, 6 persons are under 16 years of age, accounting for 9.23%, 21 persons between 16 and 40, accounting for 32.3%, 33 persons between 41 and 60 accounting for 50.8%, and 9 persons above 61 accounting for 13.85%.

2.4.3 Educational Level

Of the 20 surveyed households or 65 persons, 22 persons have elementary school education accounting for 33.85%, 33 persons junior school education accounting for 50.8%, 8 persons senior high school education accounting for 12.3%, and two (2) person junior college education accounting for 3.1%.

2.4.4 Household Income and Expenditure

According to the survey of the 20 urban households, the total family income is CNY 126,000, including salary CNY 72,000 accounting for 57.14% of total family income and other income CNY 54,200 accounting for 42.86% of total family income.

Based on the above data, it can be seen that the average annual income per capita of the 20 surveyed rural households is CNY 6,300. The major income of the affected households comes from salary.

2.4.5 Knowledge and Opinions of APs

The respondents were asked about their knowledge and opinion on the Project. The results are shown in Table 2.1. As can be seen from the table, over 95% of the respondents are knowledgeable about the Project, 100% are supportive of it.

None of the respondents believes that the Project will benefit the state, collective groups, and local government officials, and few think it will benefit local governments (2%). About 3% of the respondents believe that the Project will benefit some residents, and 95% believe that it will benefit all residents.

The results of the survey also show that people can relate the Project to family benefits. In fact, none of the respondents think the Project will have no benefit on them, while the rest believe they will benefit from the Project in various ways (e.g., improving working conditions at 10%, increasing employment opportunities 25%, improving health 35%, improving living conditions 100%. These expected benefits are consistent with the planned benefits. On the other hand, the major negative

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impacts perceived by the respondents include traffic congestion (100%). Again, these are consistent with the expected negative impacts from the Project.

Moreover, as has been seen in many other projects, the vast majority (90%) know well about the land acquisition and resettlement policy, compared to 10% who know “a little”.

Table 2.1 Results of Public Opinion Study Question Answer Result (%) (1) (2) (3) (4) (5) (6) Do you know the Project？ ① Yes ② Not clear ③ No 95 5 0 Do you agree with the Project？ ① Yes ② No ③ No comments 100 0 0 Country:① Yes ② No 0 0 Collective group: ① Yes ② No 0 0 Whom do you think will benefit All the residents: ① Yes ② No 95 0 from the Project (Can choose more than one items) Some residents: ① Yes ② No 3 0 Local government: ① Yes ② No 2 0 Local government officials: ① Yes ② No 0 0 What are the negative impacts Very time consuming, can not do other things. due to environment pollution or Life quality degraded. water supply shortage? (Can Cost too much money, cause economic losses 0 100 0 85 80 choose more than one items) Poor Investment on environment, few investors. Damage to the image of the city Do you think inferior environment No impact or water supply shortage bring Yes, but not seriously 0 0 95 5 serious impacts on you? Serious Very seriously What benefits do you think the Have no benefit Project can bring to you? Improve working condition Increase employment opportunity 0 10 25 35 100 Good for health physically and psychologically Improve living condition Improve water supply condition What disadvantage do you think Have no disadvantage the Project can bring to you? Construction of the project can affect the traffic House demolition can cause economic losses 0 100 0 0 0 Land to be acquired can reduce the economic income Other disadvantages Do you know the land acquisition ① Yes and resettlement compensation ② A little 90 10 0 policy？ ③ Nothing During the implementation of the ① Yes Project, when your interests were ② No 100 0 infringed, do you know about grievance procedure?

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3. Project Impacts

3.1 Measures Taken to Avoid or Minimize Land Acquisition and Resettlement Impacts

3.1.1 During Design Phase

In order to minimize land acquisition and resettlement impacts, comparison of project alternatives have been made during the feasibility study phase. The site selection of the booster pumping stations, routing of the water transmission and drainage pipelines as well as flood drainage culverts have been taken into consideration accordingly.

(1) Booster Pumping Stations

In the urban district, there are many booster pumping stations, which are over concentrated and inefficient. The Project takes the actual situation into consideration; a total of 17 pumping stations will be built by the Project in a scattered way. For the consideration of land saving and beautiful landscaping, a booster pumping station designed will serve for certain area of customers to satisfy the residents’ needs of water as well as land saving. As a result, a total of 10,000 ㎡ lands and CNY 35,000 will be saved.

(2) Water Transmission and Drainage Pipelines

During the pipeline design, two schemes have been considered, one is to make full use the existing pipeline along the edge of roads to reduce impacts on traffic. Based on the result of investigation, this scheme will involve three (3) households and one (1) shop to be relocated, and about 390 m2 structures will be demolished. The compensation totals at CNY 300,000. The second scheme is to construct the pipeline in the center of the road or close to the edge of roads to avoid house demolition. Although this alternative will cause impacts on traffic, it will avoid relocation and relocation cost. As a result, the second alternative was selected for the Project.

(3) Flood Drainage Tunnel

Two alternatives for open and covered tunnel have been considered for the flood mitigation works. One alternative is utilizing the existing tunnel to keep away from the residential houses and vegetable land and occupy some road, and keep away from houses and vegetable lands. This alternative will occupy 13.15 ha of land temporarily

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and 12.34 ha of land permanently. The compensation will amount at CNY 386,400. The second alternative is to excavate new tunnel, which will involve 10.35 ha of temporary land occupation, 14.25 ha of permanent land acquisition, affect two houses (totalling 120 m2) and two toilets. The compensation will total CNY 678,500. As a result, the first alternative was selected.

3.1.2 During Implementation Phase

During the Project construction period, measures will be taken to avoid traffic impacts by using pipe-jacking technology where the pipeline crosses roads. Meanwhile, the construction units will be requested to prepare detailed plan of construction, prepare reasonable construction schedule, and properly design for administration areas, soil and earth storage areas, material storage areas and construction areas.

3.2 Impacts of Land Acquisition and Resettlement

3.2.1 Inventory Survey

In order to identify the impacts of land acquisition and relocation, and determination of compensation standards and costs, and prepare the RP, the project survey has targeted: land acquisition, populations affected by land acquisition, and auxiliaries, infrastructures and special facilities, and so on. The detailed survey methods are presented as follows.

(1) Household Survey

The random sampling survey of the households in the surrounding areas affected by land acquisition can also be categorized as: rural households and urban households. The survey was made by visiting each household. The community statistics entail ethnic group, age structure, education background, and employment condition by street.

(2) Land Survey

Based on relief map (scale 1:1000) and boundaries measured by site survey, the land area was calculated by the status of land use, ownership, and classification.

(3) Survey of Infrastructure and Special Facilities

Survey on infrastructure and special facilities including roads, hydro facilities, electricity and telecommunication was conducted with information provided by each

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authority. The technicians and officials from each sector have participated in the on-site survey.

3.2.2 Permanent Land Acquisition

The booster pumping stations will acquire 14.196 ha of land permanently, of which 1.046 ha land owned by the SCs for the construction of pumping stations and 13.15 ha land owned by the VCs will be acquired for the construction of flood mitigation networks. Table 3.1 and Table 3.2 provide the impacts of permanent land acquisition for the construction of booster pumping stations and open culvert of flood mitigation works, respectively.

Table 3.1 Impacts of Permanent Land Acquisition by the Construction of Pumping Stations Land Owned by SCs to Be Acquired Project Name of Street Permanently (ha) Component Open Space Green Space (Lawn) Xinxing 0.21 Fuzhen 0.19 Taian 0.35 Pumping Stations Dengta 0.11 Zhanqian 0.186 Subtotal 0.51 0.536

Table 3.2 Impacts of Permanent Land Acquisition by the Construction of Flood Mitigation Works Land Owned by VCs to Be Acquired Project Name of Street Permanently (ha) Component Waste Land Drainage Ditch Xinxing 2.63 Fuzhen 3.05 Open Culvert of Flood Taian 2.84 Mitigation Works Dengta 1.46 Zhanqian 3.17 Subtotal 7.26 5.89 TOTAL 7.77 6.426

3.2.3 Temporary Land Occupation

The Project will acquire 39.61 ha of land owned by the respective SC, including 28.59 ha urban roads, 8.26 ha district roads, and 2.75 ha green space. Of the temporary land occupation, the covered tunnel of flood mitigation works will acquire 12.34 ha of urban roads temporarily, and drainage pipelines will occupy 27.26 ha of

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land (16.25 ha of urban road, 8.26 ha district road, and 2.75 ha green space). The pipeline will be constructed section by section. The impact period will be about one month. Details are provided in Table 3.1 the impacts of temporary land occupation by flood mitigation works and Table 3.2 the impacts of temporary land occupation by water supply and drainage pipelines.

Table 3.1 Temporary Occupation of Community Land by Flood Mitigation Works Land to Be Acquired Temporarily (ha) Project Component Name of Street Urban Road Covered Culverts of Xinxing 2.34 Flood Mitigation Works Fuzhen 2.85 Taian 2.67 Dengta 1.86 Zhanqian 1.68 Total 12.34

Table 3.2 Temporary Occupation of Community Land by Water Supply and Drainage Pipelines

Land to Be Acquired Temporarily (ha) Project Name of Urban District Green Space Component Street Road Road (Lawn) Xinxing 3.25 1.66 0.96 Fuzhen 2.86 1.05 0.58 Water Supply and Taian 3.08 1.96 0.65 Drainage Pipelines Dengta 3.69 2.04 0.57 Zhanqian 3.37 0.55 Total 16.25 8.26 2.75

3.2.4 Affected Ground Attachments

During the construction period, the ground attachments will be affected, which include auxiliaries, infrastructure and special facilities. The affected ground attachments are presented in Table 3.4.

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Table 3.4 Affected Ground Attachments Affected Items Unit Quantity Auxiliaries Fence m 10 Hand-pumped well No. 1 Outdoor toilet No. 2 Cement terrace No. 30 Machine-pumped well No. 1 Scattered tree No. 55 Infrastructure and Special Facilities Wood poles of telephone No. 64 Electric poles (380V) No. 98 Transformer (400 kVA) No. 17 Bridge No. 2 Public toilet No. 14 Water supply pipeline (25mm) m 1,050 Water supply pipeline (50mm) m 300

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4. Legal Framework and Policies

4.1 Applicable LAR Laws, Regulations and Policies

The PRC has well developed laws, regulations, and procedures for handling land acquisition, demolition, compensation and resettlement arising from the construction of infrastructure projects. According to the Chinese law, the primary objective of the LAR program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. In the case of this Project, the land acquisition, resettlement and compensation will be carried out in line with laws and regulations and policies issued by the Government of China (GOC) and local governments and meet the requirements of ADB’s Policy on Involuntary Resettlement.

The Chinese laws and regulations applicable to the land acquisition, resettlement and compensation of the Project are summarized in the following sections.

4.1.1 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued by State Council, October 2004

Article 12: Improving land acquisition compensation practice. People’s Governments at the county level and above shall adopt practical measures to ensure that the farmers whose land is acquired shall not be made worse off. It should be ensured that land compensation fees, resettlement subsidies and compensation for ground attachments and standing crops shall be provided in accordance to applicable laws and regulation and in full and in time.

The full costs of land acquisition for national key development projects shall be included in the overall project budget. The compensation standards and resettlement measures for large- and medium-scale water conservancy and hydropower projects will be formulated by the State Council.

Article 14: Improving land acquisition procedure. In the land acquisition process, attention shall be paid to respecting the ownership of collective land and the land contract of farmers. The purpose, location, compensation and resettlement sites of the land acquisition shall be announced to the farmers concerned, before the land acquisition proposal is submitted for approval. The results of the status survey of the land to be acquired shall be verified with the rural collective and the farmers concerned. If necessary, the land resource department shall organize public hearings according to law. Documentation on information to and verification by the farmers concerned should form an essential part of the land acquisition submission. A

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mediation and arbitration mechanism shall be set up or strengthened to resolve disputes arising from land acquisition, so as to protect the legal rights of land-losing farmers and land users. All land acquisition proposals, except for special circumstances, shall be made public.

Article 15: Strengthening supervision and management of the land acquisition process. In case compensation and resettlement is not properly implemented, use of the acquired land shall be prohibited. The provincial government shall formulate standards for the distribution of land compensation fees within the rural collective organizations, based on the principle that the land compensation fees shall be used for the farmer households whose land is acquired. The rural collective organization shall make the information on the revenues and allocation of the land compensation fees available to its members, and receive their supervision. The agriculture, civil affairs and other departments shall strengthen the supervision over the allocation and use of the land compensation fees within the rural collective organization.

4.1.2 Land Administration Law of PRC, 1998

The Land Administration Law of the PRC was passed at the 16th session of the Sixth Standing Committee Meeting of the National People’s Congress on June 25, 1986. It was subsequently amended at the Fourth Session of the Ninth Standing Committee Meeting of the National People’s Congress on August 29, 1998. The newly amended law was brought into force on January 1, 1999, according to the Decision on the Amendment to the Land Administration Law of the PRC that was adopted at the Fifth Session of the Seventh Standing Committee Meeting of the National People’s Congress.

ARTICLE 10: Land owned by farmer collectives to be lawfully used for non-agricultural construction shall be registered and recorded by people's governments at the county level, which shall, upon verification, issue certificates to confirm the right to the use of the land for such construction.

ARTICLE 24: The People’s Government at all levels should strengthen the management of land use plan, and control the gross amount of construction land.

ARTICLE 42: For land damage caused by earth excavation, collapse and occupation, the land use unit and individual should be responsible for land reclamation in accordance with the national regulations. If there is no reclamation condition or the reclamation can not meet the request, the land use unit and individual should pay the land reclamation fee. The reclamation of land should be used for agriculture as priority.

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ARTICLE 57: Where land owned by the State or by farmer collectives needs to be used temporarily for construction of projects or for geologic prospecting, the matter should be subject to approval by the land administration departments of people's governments at or above the county level. However, if the land to be temporarily used is located in the area covered by urban planning, the matter shall be subject to agreement by the urban planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has the land-use right, enter into a contract for the temporary use of the land with the land administration bureau concerned, or the rural collective economic organization, or the village committee and pay compensation for it in accordance with the provisions of the contract.

The temporary land user shall use the land for purposes stipulated in the contract for temporary use of the land and may not build permanent structures on it.

Generally, the period for temporary use of land shall not exceed two years.

4.1.3 Land Management Regulation of Jilin Province (revised version)

Land Management Regulation of Jilin Province (revised version) was implemented on September 1, 2002.

ARTICLE 17: For land damage caused by earth excavation, collapse and occupation, the land use unit and individual should be responsible for land reclamation in accordance with the national regulations. If there is no reclamation condition or the reclamation can not meet the request, the land use unit and individual should pay the land reclamation fee. The standards and administration regulation for land reclamation fee will be regulated separately by the People’s Government.

ARTICLE 27: Compensation for standing crops are calculated based on one crop season, if the crops can be harvested within the time period, no compensation will be paid. For nursery trees, flowers and grasses and perennial economic tress, if they can not be moved and replanted, compensation should be made for relocating and transfer costs; if they can be moved and replanted, reasonable compensation should be paid or purchase should be made based on evaluated price.

Compensation standards for the ground attachments should be determined based on agreement of two parties. If no agreement can be reached, compensation standards should be determined by the appraisal agency designated by the government of municipality (prefecture), county (city at county level).

Before land acquisition, notification should be issued by the government of

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municipality (prefecture), county (city at county level) to the units whose land will be acquired. Compensation should not be paid upon the arrival of land acquisition notification for newly planted agricultural crops, trees and newly built infrastructure and facilities on the acquired land. If land owners or users are not paid timely, all losses will be compensated by the government of municipality (prefecture), county (city at county level).

4.2 ADB’ Involuntary Resettlement Policy

The Asian Development Bank sets out its official requirements in the Involuntary Resettlement Policy adopted in 1995. The principles of the ADB’s Policy on Involuntary Resettlement are as follows:

(i) Involuntary resettlement should be avoided where feasible. (ii) When population displacement is unavoidable, it should be minimized by exploring all viable project options. (iii) If individuals or a community must lose their land, means of livelihood, social support systems, or way of life in order that a project might proceed, they should be compensated and assisted so that their economic and social future will generally be at least as favourable with the project as without it. Appropriate land, housing, infrastructure, and other compensation, comparable to the without project situation, should be provided to the adversely affected population, including indigenous groups, ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources taken for the project. (iv) Any involuntary resettlement should, as far as possible, be conceived and executed as a part of a development project or program and RP should be prepared with appropriate timebound actions and budgets. Resettlers should be provided sufficient resources and opportunities to re-establish their homes and livelihoods as soon as possible. (v) The affected people should be fully informed and closely consulted on resettlement and compensation options. Where adversely affected people are particularly vulnerable, resettlement and compensation decisions should be preceded by a social preparation phase to build up the capacity of the vulnerable people to deal with the issues. (vi) Appropriate patterns of social organization should be promoted, and existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible. Resettlers should be integrated economically and socially into host communities so that adverse impacts on host communities are minimized. One of the effective ways of achieving this integration may be by extending development benefits to host communities. (vii) The absence of formal legal title to land by some affected groups should not be a bar to compensation. Affected persons (APs) entitled to compensation and

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rehabilitation should be identified and recorded as early as possible, preferably at the project identification stage, in order to prevent an influx of illegal encroachers, squatters, and other non-residents who wish to take advantage of such benefits. Particular attention should be paid to the needs of the poorest households and other vulnerable groups, such as indigenous peoples, and appropriate assistance provided to help them improve their status. (viii) The full costs of resettlement and compensation, including the costs of social preparation and livelihood program as well as the incremental benefits over the “without project” situation, should be included in the presentation of project costs and benefits.

4.3 Document 28 to Be Operationalized under the Project

The RP is based on the relevant Chinese laws and policies, in particular the Document 28, for compensation principles, compensation standards, cost estimates, transparency and public notification. The relevant laws and regulations will be operationalized during the resettlement implementation. Table 4.1 tabulates how the Document 28 will be operationalized under the Project.

~ 31 ~ Liaoyuan Water Supply and Drainage Project Resettlement Plan Table 4.1 Document 28 to Be Operationalized under the Project • Article • Document 28 • Document 28 to Be Operationalized under the Project Article 12: Improving People’s Governments at the county level and above shall adopt practical The RP was prepared based on the relevant Chinese laws and policies, including Document land acquisition measures to ensure that the farmers whose land is acquired shall not be made 28, Land Administration Law of PRC, Implementation Regulation for Land Administration compensation practice worse off. It should be ensured that land compensation fees, resettlement Law of PRC. The objective of the RP is to ensure that the APs shall improve their standards subsidies and compensation for ground attachments and standing crops shall of living, or at least shall not be made worse of. The PMOs and Liaoyuan City WSC will be provided in accordance to applicable laws and regulation in full and in time. ensure that compensation for land loss permanently and temporarily will be provided in accordance to applicable laws and regulation in full and in time under the internal and external monitoring.

The construction of the Project will acquire no farmland and no persons will be affected. Therefore, no production and income loss will be caused to the affected households, and no rehabilitation plan is required for the Project. The compensation for loss of open space and green space will be paid to the affected village committees and street committees to be used for re-greening the space. The APs will maintain their original social insurance program they have had. Compensation for ground attachments will be paid to respective owners, who will use the compensation for re-establishment. The compensation fee for the temporarily occupied land will be paid to the municipal civil engineering administration department.

The full costs of land acquisition for national key development projects shall be The full costs of land acquisition for the project have been included in the overall project included in the overall project budget. budget Article 14: Improving In the land acquisition process, attention shall be paid to respecting the In the land acquisition process, attention will be paid by the PMOs and Liaoyuan City WSC to land acquisition ownership of collective land and the land contract of farmers. respecting the ownership of collective land procedure The purpose, location, compensation and resettlement sites of the land The purpose, location, compensation and the sites of the land acquisition have been acquisition shall be announced to the farmers concerned, before the land announced to the APs throughout the public consultation process, such as community acquisition proposal is submitted for approval. meetings, distribution of Resettlement Information Booklet, disclosure of the RP. The results of the status survey of the land to be acquired shall be verified with The results of the land survey have been verified by the PMO and Liaoyuan City WSC with the rural collective and the farmers concerned. If necessary, the land resource the collective and community concerned. Documentation on information to and verification by department shall organize public hearings according to law. Documentation on the affected collective and community concerned will be sent to the land administration information to and verification by the farmers concerned should form an bureau as part of land acquisition submission. essential part of the land acquisition submission. A mediation and arbitration mechanism shall be set up or strengthened to A localized grievance procedure, including mediation and arbitration procedure and resolve disputes arising from land acquisition, so as to protect the legal rights of mechanism has been established to resolve disputes arising from land acquisition, so as to land-losing farmers and land users. protect the legal rights of the local community population All land acquisition proposals, except for special circumstances, shall be made Land acquisition proposal for the project has been made public through community meetings public. Article 15: Strengthening In case compensation and resettlement is not properly implemented, use of the In case compensation and resettlement is not properly implemented, use of the acquired supervision and acquired land shall be prohibited. land will be prohibited or stopped by the Liaoyuan Municipal Government and ADB management of the land The rural collective organization shall make the information on the revenues The village collective and community will publicize the information through the acquisition process and allocation of the land compensation fees available to its members, and village/community meetings and bulletin board on the revenues and allocation of the land receive their supervision. The agriculture, civil affairs and other departments compensation fees available to the residents, and receive their supervision. The civil affairs shall strengthen the supervision over the allocation and use of the land and women’s federation will be included in the project leading group to supervise over the compensation fees within the rural collective organization. allocation and use of the land compensation fees with the village collective and community

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4.4 Compensation Standards

4.4.1 Eligibility

The project affected persons (APs) who are entitled to receive compensation under the Project refer to the persons affected by the involuntary taking of properties resulting in lost of assets or access to assets whether or not the APs must move to another location.

All APs in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the type of loss and quantities as well as the cut-off date of the government within the completion date of the construction map and investigation; or due to the temporary impact during the construction phase. No compensation will be made for the properties after the cut-off date.

4.4.2 Compensation Principles

The principles of the compensation and entitlements established for the Project are as follows: 1) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre project standard of living, with the prospect of improvement; 2) All the APs will be adequately informed about eligibility, compensation rates and standards, and restoration plans and project timing; 3）Compensation should be based on replacement value; and 4) Close monitoring and timely actions will be carried out to identify and resolve any problems.

4.4.3 Compensation Standards

The compensation rate was determined in accordance with the relevant laws and regulations of PRC, Jilin Provincial Government and ADB. The compensation standards are presented in Table 4.2 for permanent land acquisition, Table 4.3 for temporary land occupation, and Table 4.4 for ground attachments.

Table 4.2 Compensation Rate for Permanent Land Acquisition Type of Land Area of Land Acquisition (ha) Compensation Standards (CNY/ha) Open Space 0.376 40,000 Green Space (Lawn) 0.67 25,000 Waste Land 7.26 15,000 Drainage Ditch 5.89 10,000 Note: The compensation payments cover the loss of thirty year leasehold arrangements. The compensation for related taxes of land acquisition is included in the cost estimate of LAR (see Table 10.1).

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Table 4.3 Compensation Rate for Temporary Land Occupation Type of Land Area of Land Occupation (ha) Compensation Standards (CNY/ha) Urban Road 28.59 25,000 District Road 8.262 15,000 Green Space (Lawn) 2.754 10,000

Table 4.4 Compensation Rate for Ground Attachments Item Unit Compensation Standard (CNY) 1.Auxiliaires Attached with Houses Fence m2 70 Hand-Pumped Well No. 800 Simple Outdoor Toilet No. 200 Cement Terrace m2 20 Machine-Pumped Well No. 2,000 2.Infrastructrue and Special Facilities Bridge No. 10,000 Public Toilet No. 2,500 380V Electric Pole No. 400 Wood Pole of Telephone No. 200 400kVA Transformer No. 4,000 Water Supply Pipeline (25 mm) m 50 Water Supply Pipeline (50 mm) m 50

4.4.4 Entitlement Matrix

From the results of inventory surveys, the major impacts of the Project have been identified based on the nature of losses, and an Entitlement Matrix has been prepared as a guide to compensation payments. It is presented in Table 4.5.

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4.5 Entitlement Matrix Type of Level of Impact Entitled Persons Compensation Policy & Standards Losses Permanent Permanent loss of land The affected VCs and SCs will be z Land compensation will be paid in cash to land owned by VC or SC. In entitled to get land compensation the affected SCs at the rate of acquisition total, 14.196 ha land to be CNY40,000/ha for open space, CNY25,000 acquired permanently for The compensation received will be ha for green space (lawn) the project, including 1.04 used for development of community z Land compensation will be paid in cash to ha land owned by SCs, social and infrastructure services, the affected VCs at the rate of CNY15,000 and 13.15 ha land owned and re-greening the space for waste land, and CNY10,000 for by VCs drainage ditch

Temporary Loss of use of land owned Compensation for temporary land z Cash compensation will be paid to the land by SCs during use loss and restoration will be paid municipal civil engineering department: occupation construction period. In to the municipal civil engineering CNY 25,000/ha for urban road, and total, 39.61 ha land to be administration department to CNY15,000/ha for district road affected temporarily restore the roads to the original z Cash compensation will be paid to the condition as before. municipal landscaping administration department at the rate of CNY10,000/ha for Compensation for green space green space (lawn) will be paid to the municipal z After temporary land use for one year, the landscaping administration land will be restored to original condition department to re-green the space and keep the same quality as before. Auxiliaries Auxiliaries attached with Owner z Compensation should be paid at and Ground houses: 10 m2 fences, 1 replacement value, OR Attachments hand-pumped well, 2 z Compensation to move the facility, OR simple outdoor toilets, 30 z Repair the facility by contractor to original m2 cement terrace, 1 or better condition. machine-pumped well, z Cash compensation for auxiliaries attached and 55 scattered trees with houses: CNY70/m2 for fence, CNY800/each for hand-pumped well, Ground Attachments: 2 CNY200/each for simple outdoor toilet, bridges, 14 public toilets, CNY 20/m2 for cement terrace, 98 380V electric pole, 64 CNY2,000/each for machine-pumped well, wood pole of telephone, and CNY20/each for scattered tree 17 400kVA transformers, z Cash compensation for infrastructure and 1,050 m water supply special facilities: CNY10,000/each for pipeline (25 mm), and 300 bridge, CNY2,500/each for public toilet, m water supply pipeline CNY400/each for 380V electric pole, (50 mm) CNY200/each for wood pole of telephone, CNY4,000/each for 400kVA transformer, CNY50/m for water supply pipeline (25 mm and 50 mm) Grievance Property indexes, APs who involved in making appeal z The APs will be exempted from various compensation standards, and grievance for the settlement of kinds of fees involved in making complaints compensation payment, land acquisition and resettlement and claims for land acquisition and resettlement payment, issues resettlement issues resettlement and rehabilitation measures Office Operating costs of offices Respective offices involved in LAR z Fees will be in cash to the respective administration for LAR implementation implementation offices responsible for LAR implementation Cost with a budget of CNY 26,280 Investigation Survey of all property The design institute involved in the z Fees will be paid to the design institute in and Land indexes design and land survey of LAR cash with a budget at CNY 9,720 Survey Fees External Implementation schedule The IMA involved in the external z Fees will be paid to the IMA in cash with a Monitoring of LAR, fund M&E budget at CNY 19,700 and disbursement and usage, Evaluation and rehabilitation of APs’ living standards and environment

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5. Rehabilitation Plan

5.1 Principles of Rehabilitation Plan

In accordance with the relevant national laws and regulations and the ADB’s Policy on Involuntary Resettlement, the basic principles of the RP are as follows:

(1) Land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives;

(2) Land temporarily occupied and the period for disruption are to be kept to a minimum;

(3) Implement the resettlement program properly, comply with related compensation policies;

(4) Adequate compensation at replacement value should be provided to allow APs to at least maintain their pre-project standards;

(5) The resettlement plan should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration;

(6) The APs should be consulted for the development of the RP and for the compensation rates;

(7) Resettlement plan should be coordinated with such things as regional development, resource exploitation, economic development and environmental protection. Practical and feasible measures should be formulated to restore the affected items.

5.2 Rehabilitation Plan

The construction of the Project will acquire 14.196 ha of land permanently, but no farmland will be lost and no persons will be affected. Therefore, no production and income loss will be caused to the affected households, and no rehabilitation plan is required for the Project. The loss of open space and green space will be scattered and small, which will have minor impacts on their living environment of the surrounding residents. However, the compensation for permanent land acquisition paid to the SCs will be used for re-greening the space of wasteland or unused land which is currently ditches containing garbage in the surrounding communities and improvement of basic community infrastructures and services.

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The impact of temporary land occupation for urban roads will cause some disturbance/easement for the pedestrian. During the Project design phase, the local communities have been consulted to find ways to avoid or minimize the disturbance through the socioeconomic survey and stakeholder and community meetings. It was suggested that the pipe-jacking method should be used as much as possible to avoid or minimize the impacts. The pipeline should be constructed section by section, which will cause short time road disruption ranging for about one (1) month. No individual households and businesses will be affected. The impacts of temporary disruption to the road are addressed in the EIA report. After the completion of the pipeline construction, the temporarily affected land will be restored as before when they are returned. The compensation fee for the temporarily occupied land will be paid in accordance with the payment standard set by the municipal administrative department to the municipal civil engineering administration department. The restoration cost for the temporary land occupation is covered in the cost of temporary land occupation.

Compensation for ground attachments will be paid to respective owners. The compensation for the affected auxiliaries will be paid to the individual APs, and compensation for infrastructure and special facilities will be paid to the relevant departments or the owners, who will use the compensation for re-establishment. The new infrastructure and facilities will improve the living conditions of the affected areas.

When the Project is completed, it will enhance the economic development and improve the environment of investment for the Liaoyuan City, which will greatly facilitate the improvement of the local people’s living standards. In particular the project benefits will accrue to women, the poor, children and elders as they are more vulnerable to be exposed to and have less capability to cope with water pollution and flooding as well as associated water-borne diseases.

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6. Organizational Structure and Responsibilities

6.1 Particpating Agencies

During the resettlement implementation, the organizations involved in the RP, management, implementation and supervision of RP are as follows:

（1） Jilin PPMO （2） Laioyuan City Project Leading Group (PLG) （3） Liaoyuan City PMO （4） Liaoyuan City Water Supply Company (WSC) （5） Liaoyuan Land Administration Bureau (LAB) （6） VC or SC （7） NUIEDRI （8） Independent Resettlement Monitoring and Evaluation Agency.

6.2 Organizational Structure for Resettlement Implementation

6.2.1 Institutional Arrangements

Liaoyuan City PLG will be formed by a PLG leader, and consist of the officials of Planning and Reform Commission, Finance Bureau, LAB, Construction Commission, Civil Affairs Bureau, Women’s Federation, and Water Resources Bureau of Liaoyuan City, The member of the Group have profound working experience, and have successfully organized many municipal infrastructure projects involved land acquisition and resettlement. Besides, the members of the Group come from different departments with rich experience of project management to act as the coordinators and organizers.

6.2.2 Institutional Responsibilities

For successful implementation of the RP, the responsibilities of the participating organizations have been defined:

（1） Jilin PPMO

z Perform the overall coordination and organize the project activities z Coordinate the preparation and implementation of the LAR program z Serve as a liaison between ADB and the Liaoyuan City PMO and various stakeholders

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（2） Liaoyuan City PLG

z Lead, organize, coordinate and formulate policies for the project. z Review the implementation of the RP. z Conduct internal supervision and inspection. z Make decision for major problems during the resettlement process.

（3） Liaoyuan City PMO

z Engage the design institute to identify the scope of project impacts. z Organize the socioeconomic survey. z Apply for Land Use Planning Certificate and Land Use Construction Certificate to LAB. z Organize and coordinate the preparation of RP. z Finalize and coordinate implementation of RP according to the project construction schedule. z Disburse resettlement fund and supervise the usage. z Direct, coordinate and supervise the implementation schedule of RP. z Organize and implement internal supervision, determine independent external supervision agency, coordinate internal and external monitoring activities. z Review the monitoring report. z Coordinate the handling of the conflicts and problems during the resettlement implementation. z Report the schedule of land acquisition and resettlement, fund usage and implementation status periodically to ADB.

（4） Liaoyuan City Water Supply Company

z Organize the socioeconomic survey. z Conduct measurement surveys. z Organize the public consultation activities. z Coordinate and organize RP and participate in the RP preparation. z Implement the relevant policies of project construction use land management. z Determine the RP and compensation standards in accordance with relevant policies, and apply for approval from relevant departments. z Apply for approval of land acquisition. z Apply for Land Use Certificate and Land Use Construction Certificate. z Implement the RP. z Sign the land acquisition agreement with the affected households in association with local government. z Supervise the implementation of resettlement.

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z Manage the information of land acquisition. z Train the resettlement staff. z Coordinate the handling of conflicts and problems during the resettlement implementation. z Settle the disputes and grievances through coordination and arbitration. z Report the land acquisition progress to Liaoyuan City PLG.

（5） Liaoyuan City LAB

z Implement the relevant national policies of land acquisition. z Participate in the examination of compensation standards for land acquisition and auxiliaries. z Process and approve land acquisition. z Participate in socioeconomic survey. z Participate in the preparation of RP z Issue Land Use Planning Certificate and Land Use Construction Certificate. z Issue Public Notice of Land Acquisition. z Guide, coordinate, and supervise the implementation activities of land acquisition. z Coordinate the handling of conflicts and problems during the resettlement implementation.

（6） Respective VC and SC

z Participate in socioeconomic survey and formulation of the resettlement and rehabilitation plan. z Participate in the preparation of the RP z Organize the public consultation; and publicize policies of land acquisition and house demolition. z Supervise and exam rehabilitation activities. z Report comments and suggestions of APs to the organizations at upper level

（7） China Northeast Urban Infrastructure Engineering Design and Research Institute

z Minimize the project impacts through optimizing engineering design. z Identify the scope of land acquisition impacts. z Conduct measurement survey and socioeconomic survey. z Assist to prepare the RP. z Provide technical consulting of data collection and processing to the Liaoyuan City PMO and WSC.

（8） Independent External Monitoring Agency

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z Provide technical consulting of land acquisition and resettlement. z Act as an independent monitoring agency (IMA), provide periodic monitoring for the implementation of the RP, and provide independent evaluation report to the provincial and city PMOs, Liaoyuan City WSC, and the provincial and city PLG and ADB.

6.3 Monitoring Institutions

To ensure the successful implementation of the whole RP, both internal and external monitoring institutions should be engaged to supervise the implementation of the RP (see Section 9).

6.4 Resettlement Administration System

The organizational structure from upper level to the lower lever including the PLG to the PMO to all relevant organizations (including LAB, etc.) to affected villages/streets should be formed to ensure the smooth and successful implementation of the RP. Figure 6.1 presents the organizational structure.

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Figure 6.1 Organizational Structure

JILIN PROVINCIAL PLG JILIN PROVINCIAL PMO

LIAOYUAN CITY PLG LIAOYUAN CITY PMO

LIAOYUAN CITY WSC

DESIGN & LIAOYUAN CITY RESPECTIVE RESEARCH IMA LAB VC/SC INSTITUTE

AFFECTED OWNERS

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6.5 Staffing and Facilities

In order that the resettlement will operate smoothly, the responsible resettlement office of Liaoyuan City PMO and WSC, and relevant organizations involved in the resettlement implementation at various levels will assign competent and devoted staff to form a channel for the free flow of information from bottom-up. The staff of resettlement organization should have certain working experience in land acquisition and resettlement. The organizations will be staffed with at least 30% female cadre, and opportunity will be provided to them to play a role for resettlement implementation. Table 6.1 provides a summary of staff for the LAR implementation of the Project.

Table 6.1 Staffing for Implementation of the Resettlement Plan Resettlement Implementation Number of Qualifications Year to Organizations Resettlement Staff Start the Work Liaoyuan City PLG 1 Government officer, education level 2003 above college Liaoyuan City PMO 2 Government officer, engineering 2003 technicians, education level above college Liaoyuan City WSC 4 Engineering technicians, resettlement 2003 officers, education level above college Liaoyuan City LAB 2 Government officer, education level Sept. 2004 above college Respective SC 3 SC officials Sept. 2004 Respective VC 5 Village officials Sept. 2004 China Northeast Municipal 3 Engineering technicians, education level June 2004 Engineering Design and Research above college Institute Independent External M&E Agency 2 Professor, education level above master Mar. 2005 degree

6.6 Training Plan for Resettlement Officers

Training courses should be provided to the resettlement officers for resettlement measurement survey and preparation of the RP. Topics will include PRC law and ADB’s policy on resettlement, survey method, method of the RP preparation, basic components of social impact assessment, contents and methods of questionnaire survey, and counselling services.

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7. Public Participation

7.1 Public Participation Strategy

Great attention has been paid to public participation under the project during the planning, and RP preparation. Between August 20 and 25, 2004, extensive consultations have been made to the relevant affected communities, government organizations. Comments have been solicited from communities, government organizations and affected households.

7.2 Methods and Measures of Public Participation

During the preparation of the project FSR, the PMO and design institute have held various meetings with the relevant organizations and representatives of village residents and street residents regarding the resettlement and compensation policies. Comments and suggestions have been obtained on the selection of pipeline location, RP and rehabilitation plan. The RP has been prepared based on the above.

7.3 Public Participation during RP Preparation

During RP preparation, all relevant organizations and representatives have participated in the following activities:

(1) During the measurement survey of land acquisition and house demolition in August 2004, all levels of relevant organizations responsible for resettlement, representatives of VCs and SCs and residents (including women) have been involved in the survey activities. (2) From August to September 2004, the PMO organized many meetings of government officials at various levels and the representatives of local communities to publicize the existing national, provincial and municipal resettlement policies and ADB’s Policy on Involuntary Resettlement. Comments have been solicited from the participants for minimizing the project impacts, and formulating the compensation rates and rehabilitation plan. With extensive consultations, the local residents who are living in the surrounding areas of the project sites generally agree with the cash compensation in accordance with the national regulations. (3) During RP preparation period from August to September 2004, the City PMO and WSC, design institute and other relevant organizations visited each village and street, held meetings with participation of the village and street leaders and representatives of residents to solicit their comments on impact mitigation and restoration measures, and compensation policies of land acquisition. (4) In order to strengthen the project awareness and outreach, the city PMO and WSC, and design institute have conducted questionnaire surveys of the APs in August 2004.

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The survey covered all the villages to be affected; and it has extensive representation; and the result is reliable and can reflect the preferences of the APs. (5) Women in the project area enjoy equal rights with men and they are playing an important role in project planning, design and implementation. During the field survey, over 50% of women have participated in the survey on land acquisition and inventory indexes. Meanwhile, the local government organized the resettlement consultation meeting (at least 30% participants are women) and some representatives of Liaoyuan City Women’s Federation were asked to participate in consultation meetings to fully solicit opinion of local women.

7.4 Information Disclosure

7.4.1 Resettlement Information Brochure

In order to help the APs gain a good understanding of the resettlement policies and their entitled rights, the Liaoyuan City PMO has prepared a resettlement information brochure (RIB) and distributed a copy of RIB to affected households on December 12, 2004. Consultation meetings were held with the community people on December 20, 2004. In general, the local people support the construction of the Project and express their interest to participate in the project activities, in particular the flood mitigation works. The main components of the brochure include: (1) general description (including purpose and location) of the project and the socioeconomic benefits; (2) project impacts; (3) laws, regulations and policies of land acquisition and house demolition; (4) basic rights and entitlements of the APs; (5) compensation rates; (6) land acquisition sites; (7) Income restoration plan and grievance procedure; and (8) implementation schedule. The disclosure procedure can increase the transparency during the resettlement implementation. At the same time, it will advise the APs how they can raise their request and appeal through various channels (including the Liaoyuan City PMO and WSC, People’s Government at city, district and township level and VC/SC) and various methods (i.e. by visiting, writing letter or telephone). On December 30, 2004, meeting was held by Liaoyuan Water Supply Company to solicit the APs’ comments on the RIB. In general, the meeting participants agree with the Project and the RP.

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7.4.2 Distribution of the Resettlement Plan

The Chinese version of the RP was distributed to all affected VCs and SCs in January, 2005 and is available to any one wishing to consult the document at the VCs and SCs. Copies of the RP are kept in the Project office, and affected VCs and SCs. At the same time, the RP was approved by Liaoyuan Municipal Government (LMG) in January 2004 and will be sent to ADB for the publication on ADB’s website in April 2005.

7.5 Public Participation Plan during RP Implementation

In order to address the problems and needs of the APs properly and timely regarding land acquisition and resettlement, further consultations with the APs in particular women will continue so that all issues may be addressed prior to the start of construction and the implementation of the RP. Meetings will be arranged by the implementation agencies for land acquisition and resettlement, as appropriate. The local residents will have the opportunity to negotiate the compensation contract. The planned public participation and consultation process is presented in Table 7.1.

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Table 7.1 Public Participation Plan and Consultation Process Purpose of Form of Event Timing Implementing Agencies Target Remarks Event Participants 1. Provide Community Aug – Sept, Liaoyuan PMO and WSC, APs and Meetings to be held with briefings to the meetings and 2004 city governments, and selected local local residents in each local resident on focus group VCs/SCs residents to be street and village the Project & RP. discussion affected Solicit comments from the local residents. 2. Disclosure of Public & Dec. 2004 Liaoyuan City PMO and All APs and Distribution of the RIB to RIB community WSC, city LAB, and selected local the representatives of meetings and VCs/SCs residents to be local residents to discuss focus group affected concerns to RP discussions Undertook discussions with various focus groups to solicit comments & suggestions 3. Conduct final Site Apr - May, Liaoyuan City PMO and All APs and Inventory of all assets detailed census investigations 2005 WSC, city governments, selected local and land holdings survey and household city LAB, and VCs/SCs residents to be interviews affected Collection of socio-economic data 4. Present draft Public & Jan. 2005 Liaoyuan City PMO and APs and Distribution of the draft final RP to APs community WSC, city government, selected local RP to the meetings and and VCs/SCs residents to be representatives of local focus group affected residents to discuss discussion concerns & gaps relating to RP

Undertake discussions with various focus groups to solicit comments & suggestions 5. Advise APs of Public meetings Apr – May, Liaoyuan City PMO and All APs Meetings with relevant entitlements and 2005 WSC, city government, owners to outline dates of and VCs/SCs entitlements disbursement 6．Disclose Community Apr 2005 Liaoyuan City PMO and Stakeholders, Meetings to be held with detailed design meetings and WSC, city government, beneficiaries, the representatives of and updated RP focus group and VCs/SCs and APs local residents to APs prior to discussion submission to ADB for approval 7. Monitoring of Household Jun 2005 – Liaoyuan City PMO and Random Identify need for APs, interviews Dec 2007 WSC, city governments, samples additional support, beneficiaries city LAB, Provincial PMO, particularly for vulnerable Liaoyuan City PLG, and disadvantaged VCs/SCs, and group independent external monitor Provide recommendations and update RP monitoring plan

For smooth and successful implementation of the RP, the local residents should be encouraged to actively participate in the various project activities. In order to ensure the local residents could benefit from the project, they are encouraged to actively participate in the project construction. In particular, the PMO and WSC will draw extensive participation of the local communities to involve in the improvement of the flood mitigation works, in association with local residents through VCs, SCs and local governments.

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8. Grievance Procedures

8.1 Possible Grievances and Solutions

During the RP implementation, some complaints may be raised by the APs due to the changes of actual situation and deviation of operation, such as the indexes and method for the land measurement, house measurement (if there is any), compensation standards, classification of land type, the calculation of the compensation cost, implementation of RP, and so on. If the above issues involved, the APs could appeal in accordance with the regulated grievance procedures.

8.2 Grievance Channels and Procedures

In order to resolve the problems efficiently during resettlement implementation, the project has established a transparent grievance channel in addition to the existing grievance channels of local government. The first step of grievance procedure established for the project is through village committee or street committee, which is localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. The details are as follows:

Step 1： If the APs are not satisfied with the RP, they could appeal in verbal or written form to VC/SC. If it is a verbal grievance, the village should make written record. The VC/SC should resolve the grievance within two weeks.

Step 2： If the APs are not satisfied with the result, they have the right to appeal to the PMO and WSC, which should resolve the grievance within two weeks.

Step 3： If the APs are not satisfied with the response, they could appeal to the civil court in accordance with the civil law after receiving the decision from the PMO and WSC.

APs should be informed of the above grievance and appeal procedure through public information meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely.

An independent monitoring agency (IMA) will be hired to inspect and report on the resettlement processes and the operation of the Resettlement Offices and relevant organizations involved in the LA implementation at different levels and correct any errors made during the resettlement

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No fees shall be charged by any institution/organization receiving the grievances. The appeal fee which is about CNY 3,000 will be paid by the Liaoyuan City Water Supply Company from contingency budget.

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9. Monitoring and Evaluation

In order to ensure the smooth implementation of the RP and achieve objectives of RP, periodic monitoring and evaluation (M&E) will be conducted for the implementation of the land acquisition and resettlement in accordance with the requirements of ADB’s Policy on Involuntary Resettlement. The monitoring will include both internal and external.

9.1 Internal Monitoring

9.1.1 Purposes and Tasks of Internal Monitoring

Internal monitoring will be conducted by the Jilin PPMO, Liaoyuan City PLG, Liaoyuan City PMO and WSC, Liaoyuan City LAB, to ensure all the responsible organizations follow the principles and schedule of the RP. The purpose of internal monitoring is to ensure the resettlement implementation agencies function well during the resettlement implementation process.

9.1.2 Personnel Arrangement

The personnel who will be responsible for monitoring and data processing are provided in Table 9.1.

Table 9.1 Personnel Arrangement for Internal Monitoring Number of Staff Number of Staff No Organization (Regular Time) (Busy Time) 1 Liaoyuan City PLG 1 2 3 Liaoyuan City PMO 2 4 4 Liaoyuan City WSC 2 4 5 Liaoyuan City Land Administration Bureau 1 2 6 Independent Monitoring Agency 1 2

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9.1.3 Content of Monitoring

(1) Compensation disbursement to the VCs/SCs and property owners. (2) Rehabilitation of affected property owners. (3) Schedule of above land acquisition activities. (4) Compliance with the policies and regulations of the RP. (5) Participation and consultation during the project implementation. (6) Staffing, training, schedule and work efficiency of the resettlement officers.

9.1.4 Implementation Procedures

During implementation period, the Liaoyuan PMO and WSC should collect and record the information on the resettlement activities of the APs based on the sampling provided by the monitoring agency, and report activities timely to Jilin PPMO, to ensure the continuity of monitoring activity.

During the monitoring period, keep the continuity of information circulation among Liaoyuan City PMO and WSC, Liaoyuan City LAB and Jilin PPMO, through filling in standard reporting form. As the important internal monitoring organization, the Jilin Provincial PMO and Liaoyuan City PMO and WSC will check and verify the monitoring information periodically.

9.2 External Monitoring

9.2.1 Objectives and Tasks

External M&E are mainly conducted by the external monitoring agency independently and periodically. The external monitoring agency of the project should be a qualified independent resettlement M&E organization with sufficient experience and expertise.

The scope of work is as follows:

z Work efficiency of the resettlement implementation organizations z Implementation schedule of land acquisition z Compensation and restoration of the affected properties z Tracking analysis on the result of land acquisition implementation.

External monitoring should be conducted by the independent monitoring agency in a comprehensive and long-term view. The external monitoring agency should evaluate the following resettlement implementation activities:

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z Implementation of the relevant national and local laws of land acquisition and resettlement. z Compliance with ADB’s Policy on Involuntary Resettlement. z Whether the affected properties will be restored and improved.

External monitoring agency will present suggestions to the PMO and WSC, to ensure the problems can be resolved timely.

9.2.2 External Monitoring Agency

Jilin PPMO in association with Liaoyuan City PMO and WSC will engage a qualified independent external M&E agency as the third party monitoring institution of the project.

9.2.3 Major Indicators of Monitoring and Evaluation

(1) Monitoring and evaluation on implementation schedule of land acquisition and house demolition

z Schedule of land acquisition. z Schedule of temporary land occupation. z Schedule of infrastructure and facility demolition.

(2) Monitoring and evaluation on fund disbursement and usage

z Fund disbursement. z Fund usage (planning and actual fund usage).

(3) Monitoring and evaluation on rehabilitation activities

z Conditions of land recovery z Conditions of the rehabilitated infrastructure and facilities z Analysis and evaluation of conditions before and after the acquisition z Grievances and resolution of problems.

9.2.4 Special Considerations

Special attention will be paid to women, the poor and vulnerable groups (if there is any) during monitoring. These include:

z The status and function of women: closely monitor any change in women’s status,

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function and situations. At least 40% of APs surveyed will be women. The IMA will also provide recommendations and assistance to the PMO and Liaoyuan City WSC in respect of women’s issues; z Care and attention to vulnerable groups: closely monitor living conditions of the elders, handicapped, and other vulnerable groups after resettlement, to ensure that no hardship is experienced; z Monitoring and evaluating will provide information on use and sufficiency of resettlement funds. An independent auditor assigned by the government will audit resettlement accounts and funds.

9.2.5 Methods of Monitoring and Evaluation

(1) Methods including site investigation, calculation and analysis and expert’s comprehensive evaluation. (2) Full investigation to the resettlement progress, fund, organizational structure and management. (3) Random sampling will be conducted every year during the LAR implementation. (4) The full survey will use the methods such as forms, meetings and discussions, and record checking. (5) Written materials, as well as information such as photos, audio and video records and indexes, should be collected.

9.2.6 Monitoring and Evaluation Report

(1) Reporting Frequency

The external monitoring will be undertaken every six (6) months. The IMA will provide the status reports semi-annually from the start of the implementation of RP to the provincial and municipal PMOs, WSC, the PLG, and VCs/SCs, and relevant organizations involved in the implementation of the RP until the Project is completed.

The IMA will send reports directly to ADB and the provincial PMO, which in turn forward the reports to the Liaoyuan City WSC and Liaoyuan City PMO. The Liaoyuan City WSC and PMO shall ensure that information on the progress and status on all aspects of land acquisition and resettlement activities will be provided to the IMA for verifying the progress reports. The Liaoyuan City WSC and PMO via provincial PMO will also submit a resettlement completion report to the ADB. This would be followed by a post-resettlement impact evaluation and reporting by the IMA, which should provide conclusive evidence whether adverse effects of the Project have been mitigated adequately, and at least “without project” income levels have been restored.

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(2) The external M&E report should cover the following components

z M&E baseline survey of resettlement; z Progress of land acquisition and rehabilitation; z Allocation of compensation funds; z Usage of land compensation; z Infrastructure and special facility re-construction; z Evaluation on capacity of the resettlement implementing agencies; z Participation and consultation; z Grievances and appeals; z Problems and suggestions; z Levels of AP’s satisfaction and local residents; z Conclusion of evaluation; z Major existing and potential problems, including follow-up of problems previously identified; and, z Recommendations of mitigation or prevention measures.

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10. Cost Estimates

10.1 Basis of Cost Estimates

(1) Land Administration Law of PRC (2) Inventory Indexes affected by the project and other documents provided by design institute. (3) Local market prices.

10.2 Compensation and LAR Costs

The costs to be incurred on land acquisition and resettlement are included in the overall budget of the Project. The total cost of land acquisition and resettlement for the Project is estimated to be CNY 2.079 million at the prices of April 2005, including 15% contingencies (physical and price). The estimated costs include compensation for land, compensation for temporary land use, infrastructure and special facilities, relevant land taxes, M&E and other costs, and contingency. The detailed cost estimates are presented in Table 10.1.

Table 10.1 Detailed Cost Estimates of LAR Compensation Cost Estimate Physical Standard (104 CNY) Losses Unit Quantity (CNY)） Remark A. Basic Cost 131.391 a. Compensation Cost of Land 106.581 1. Permanent land acquisition 19.959 open space ha 0.376 40000 1.504 green space (lawn) ha 0.67 25000 1.675 Waste land ha 7.26 15000 10.89 drainage tunnel ha 5.89 10000 5.89 2. Temporary land occupation 86.622 urban road ha 28.59 25000 71.475 district road ha 8.262 15000 12.393 green space (lawn) ha 2.754 10000 2.754 b. Ground Attachments 24.81 1. Ground attachments 0.560 fence M2 10 70 0.070 hand-pumped well No. 1 800 0.080 outdoor toilet No. 2 200 0.040 cement terrace M2 30 20 0.060 machine-pumped well No. 1 2000 0.200 Scattered tree No. 55 20 0.110 2. Infrastructure and special 24.25 facilities bridge No. 2 10000 2.00 public toilet No. 14 2500 3.50 380V electric pole No. 98 400 3.92 wood pole of telephone No. 64 200 1.28

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Compensation Cost Estimate Physical Standard (104 CNY) Losses Unit Quantity (CNY)） Remark 400kVA transformer No. 17 4000 6.8 water supply pipeline (25 mm) m 1050 50 5.25 water supply pipeline (50 mm) m 300 50 1.50 B. Other costs 5.57 1. Office administration cost 131.391 2% 2.628 2% of basic cost 2. M&E 131.391 1.5% 1.971 1.5% of basic cost 3. Investigation and land survey 0.972 C. Land related administration 43.78 costs and Taxes 1. Management cost for LA 106.581 3% 3.197 3% of basic cost 2. Land administration fee ha 15.356 10000 15.356 3. Land registration fee ha 15.356 1000 1.536 4. Control planning fee ha 15.356 15000 23.034 5. Land evaluation fee 131.391 0.50% 0.657 0.5% of basic cost

D. Basic Resettlement Cost and 180.741 Other Expense

E. Contingencies 27.111 1. Basic contingency 180.741 10% 18.074 2. Price difference 180.741 5% 9.037 F. TOTAL 207.852

10.3 Annual Budget

According to the project schedule, the civil work construction period will take about 18 months (July 2005 to December 2006). The annual cash flow is estimated to be 75% or CNY 1.56 million for the first year of LAR implementation, and 25% or CNY 519,600 for the second year, respectively. Table 10.2 provides the annual budget of resettlement cost.

Table 10.2 Annual Budget of Resettlement Cost First Year Second Year TOTAL Total Budget (104 CNY) 155.89 51.96 207.85 Proportion of Total Budget (%) 75% 25% 100%

10.4 Flow of Fund

Fund related to resettlement will be distributed through the following channels (See Table 10.3):

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Table 10.3 Flow of Fund Compensation for permanent LA → WSC → VCs or SCs

Compensation for temporary LA (Road) → WSC → Municipal Civil Engineering Bureau

Compensation for temporary LA (Lawn) → WSC → Municipal Landscaping Administration Depart.

Auxiliaries → WSC → SC/VC → Owner Ground Attachments Infrastructure & special → WSC → Owner facilities

Land acquisition related administration fees → WSC → LAB and taxes

Office administration costs → WSC → LAR implementation agencies

Investigation and design cost → WSC → Design institute

M&E → WSC → Independent Monitoring Agency

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11. Implementation Schedule of Resettlement Plan

11.1 Principles

The schedule of land acquisition for the Project will be coordinated with the respective construction schedule. Based on the time schedule of the project, the land acquisition and resettlement schedule has been developed, reflecting the linkage and consistency between the time schedule of land acquisition and civil works construction tasks.

In order to ensure that all aspects of the RPs can be achieved, land acquisition will be completed at least one month before construction. Before the land acquisition, a final measurement survey will be conducted in each village/street, and the contracts will be negotiated and signed. The disbursement of compensation should be paid.

11.2 Schedule of RP Implementation

The land acquisition schedule will be carried out by stages. The general engineering schedule for the project is presented in Figure 11.1. The implementation of land acquisition schedule of the Project is presented in Table 11.2.

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Figure 11.1 Schedule of Project Implementation Activities 2004 2005 2006 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Feasibility study Engineering geological survey Preliminary design Engineering geological detailed survey Final equipment procurement lists Preparation of bidding documents Engineering tendering process and signing contract Detailed design of construction map Construction preparation Civil work construction Engineering equipment installation Testing and putting into operation

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Figure 11.2 Schedule of Resettlement Implementation Activities 2004 2005 2006 2007 2008 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 Planning of Land Acquisition and Resettlement Finalize the scope of land acquisition and resettlement Conduct socioeconomic survey Conduct measurement survey of APs Determine compensation standard & resettlement plan Prepare resettlement plan Conduct detailed measurement survey Identify and confirm poor and vulnerable APs Finalize compensation/rehabilitation plan Permanent Land Acquisition and Temporary Land Occupation Feasibility Study approval Apply for the Land Use Certificate Apply for Land Use Construction Certificate Held mobilization meetings of LA and publicize policies Announce public notification Negotiate and sign contracts Disburse compensation payment and acquire land Restoration of land temporarily affected Monitoring and Evaluation Establish internal monitoring system & formats Engage monitoring agency Approve TOR by ADB Training of resettlement staff Monitor LAR activities Monitor socioeconomic indicators/vulnerable program Conduct external evaluation

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