40641-013 Hebei Small Cities and Towns Development Demonstration

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40641-013 Hebei Small Cities and Towns Development Demonstration Due Diligence Report of Resettlement Project Number: 40641 July 2013 PRC: Hebei Small Cities and Towns Development Demonstration Sector Project Prepared by Zhangbei Huaying Heating Co., Ltd For Zhangbei County Town East Station Thermal Source Plant Construction Project The due diligence report of resettlement is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. ADB Loan — Hebei Small Cities and Towns Development Demonstration Sector Project Zhangbei County Town East Station Thermal Source Plant Construction Project Due Diligence Report of Resettlement on Acquired Land Zhangbei Huaying Heating Co., Ltd. May 2013 Contents 1. PROJECT OVERVIEW ..................................................................................................................................... 2 2. OVERVIEW OF ZHANGBEI COUNTY ........................................................................................................... 3 3. SOCIAL AND ECONOMIC CONDITIONS OF THE PROJECT AFFECTED VILLAGE GROUPS ....... 5 4. PROJECT IMPACTS ......................................................................................................................................... 6 5. LAND ACQUISITION PROCEDURE AND INFORMATION DISCLOSURE ............................................. 7 6. COMPENSATION STANDARD AND LIVELIHOOD MEASURES ............................................................. 8 7. RESETTLEMENT GRIEVANCE REDRESS ................................................................................................. 15 8. INSTITUTIONAL ARRANGEMENTS ........................................................................................................... 16 9. NEXT STEPS DURING PROJECT IMPLEMENTATION ........................................................................... 17 10.APPENDICES ................................................................................................................................................... 18 1 1. Project Overview Zhangbei County Town East Station Thermal Source Plant Construction Project is one of the subprojects of Hebei Small Cities and Towns Development Demonstration Sector Project, a proposed ADB loan project. The Project comprises mainly of the construction of a thermal source plant including the construction of new boiler houses, draught fan houses, desulfurization workshops, dry coal sheds, comprehensive water pump houses, duty rooms, etc., with a total construction area of approximately 12,000m2 and the installation of 3 Nos. 72MW chain type hot water boilers and the supporting thermal network circulation system, boiler softening water treatment system and emission control system. The Project Beneficiary Area covers the area to the west of Chahaer Street and south of Xinhua East Road in the eastern part of Zhangbei County Town. By the end of 2011, the heating area served by Zhangbei Huaying Heating Co., Ltd. had reached 1,300,000m2. The Large Scale Heat Supply Network Connection Plan for Year 2012 initially plans to increase a heating area of approximately 3,500,000m2 for the near future and another 1,500,000m2 for the far future. This Project will provide heat to an area of 3,000,000m2 as a part of the short-term future plan. Therefore, for the sake of social development of the county town, development of district heating is needed. This Project is anticipated to generate the following social and economic benefits: (1) improved urban infrastructure and promoted urban modernization to create necessary conditions needed for sustainable development of Zhangbei County; (2) increased energy efficiency and conservation of energy; (3) conditional installation of high chimneys and emission purification devices for removal ofsulfur and dust, alleviation of air pollution and improvement of environmental and sanitary conditions; (4) release of land with an area ranging from 150m2 to 200m2 per community occupied by small boiler houses and fuel and ashes to help improve city appearance; (5) reduced stokers and transportation of fuel and 2 ashes and reduced operating cost; (6) easier to achieve scientific management to improve heating quality. Zhangbei County Town East Station Thermal Source Plant Construction Project is scheduled to commence in July 2013. The land acquisition and resettlement activities were implemented in May 2012. In 2011 when the project was being prepared, it was not included as a subproject of the Hebei Small Cities and Towns Development Demonstration Sector Project which is financed by ADB. Thus the LAR activities were carried out without any RP being prepared or submitted to ADB. In 2012 during the midterm adjustment of Hebei Small Cities and Towns Development Demonstration Sector Project, it was discussed that Zhangbei Project could be included in the loan as a subproject. As per the request of ADB, a due diligence shall be conducted to describe the implementation status of the LAR activities. The Project comprises of the construction of East Station Thermal Source Plant with a total installation capacity of 216MW (3x72MW). The Project is located 390m east of Chahaer Street and north of Xinghua East Road in the county town of Zhangbei County. According to the Project Application Report, the Project involves the acquisition of 60mu grass land of Zhangbei Town Xincun Village. Zhangbei Huaying Heating Co., Ltd. has implemented the land acquisition and paid compensation for this land acquisition, which is the subject of this DDR. This LAR process only involves impacts of land acquisition and no impacts of house demolition and ground attachments. 2. Overview of Zhangbei County Located in the northwestern part of Hebei Province and on the southeast border of Inner Mongolia Plateau and outside the ancient Great Wall, Zhangbei County is 227km from the national capital of Beijing and finds itself on a south-north communication center. Geographically located at 40º57′~41º34′ north latitude and 114º10′~115º27′ east longitude, Zhangbei County borders on Guyuan County and Shangyi County on the east and west and neighbors Kangbao 3 County on the north and Zhangjiakou City, Chongli County and Wanquan County on the south beyond the Great Wall. The recent years have witnessed the increasing role of Zhangbei County as a transport center. On Nov. 16, 2002, Zhangjiakou-Shijiazhuang Expressway, a national key project, was opened to traffic in its full length thanks to four years of strenuous efforts of construction. Via Zhangjiakou City, Zhangbei County is more closely linked with Beijing and Tianjin. The National Highway No. 207 runs for 47 kilometers through Zhangbei County and connects Zhangbei with Xilinhaote, Zhangjiakou and Xuanhua. In addition, Zhangbei County is the congregating and radiating center of 5 east-west and south-north trunk highways. Relying on its local advantages of mineral resources, agricultural and livestock products and labor forces, Zhangbei County has substantially built up a well-structured and multi-sector industrial system comprising of leather, wool, chemistry, building materials, meat products, garments, foot and head wears, machinery, sugar refinery, vintage, yeast and grease. The County as a whole has more than 40 products honored as top quality products above the municipal level. Zhangbei County is a place bestowed with richmineral resources and has established more than 40 building material and chemical industry enterprises mainly engaged in development of mineral resources. Caijiaying Lead-Zinc Ore Mine, a joint venture with Australia involving a foreign investment of USD 130 million, is one of the large foreign investment projects in Hebei Province. Refractory and insulation material products manufactured from diatomite in Zhangbei County are also found among the top rank in China. More than 20 mineral resources including lead-zinc, goldgold, silver, troilite, fluorite, diatomite, lignite, floatstone, basalt and dolomite have been discovered and proven in Zhangbei County that is known for its abundant reserves of mineral resources. Among the 5 proven lead-zinc ore belts, No. 3 ore belt only is found having a reserve of up to 33,830,000 tons and including gold, silver, lead and zinc, all of which are of top quality and enjoy great prospect of development. 4 Zhangbei was administered by former Chabei District of Chahaer Province in 1945 and now by Zhangjiakou Municipality of Hebei Province. In 2005, Zhangbei was approved by the People’s Government of Hebei Province as one of the first group of counties with expanded power. Known as the “town of military importance in Bashang Area” with a total area of 4,185km2 and a population of 370,000, Zhangbei County administers 18 towns and townships, 366 administrative villages, 1,167 natural villages and a population of 372,000, including an agricultural population of 312,000. Zhangbei County is sited in Zhangbei Town. With 1,665,000 mu of arable land, 1,090,000 mu of forest land and 1,590,000 mu of grass land, Zhangbei County is the meeting point of the agricultural culture of the central plains and the pastoral nomadism culture of the Mongolian Prairie. Convergence of the Mongolian and Han cultures results in the unique local culture in Zhangbei, which is also known as an ideal tourist destination and summer resort. 3. Social and Economic Conditions of the Project Affected Village Groups Permanent acquisition of the collectively-owned grass land under the Project affected villagers of Xincun
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