Ethnic Minority Development Plan

July 2005

People’s Republic of : Flood Management Sector Project ( Subproject)

Prepared by Sogreah Consultants for the Hunan Provincial Government and the Asian Development Bank (ADB) and approved by ADB.

CURRENCY EQUIVALENTS (as of 1 July 2005) Currency unit – Yuan (CNY) CNY1.00 = $0.1208 $1.00 = CNY8.2765

NOTE (i) In this report, "$" refers to US dollars.

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

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

PEOPLE REPUBLIC OF CHINA ASIAN DEVELOPMENT BANK HUNAN WATER RESOURCES DEPARTMENT

HUNAN FLOOD MANAGEMENT PROJECT

TA 4324-PRC

ETHNIC MINORITY DEVELOPMENT PLAN (SANGZHI)

JULY 2005 13401501.R4 (EMDP)

ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (EMDP): ETHNIC MINORITY DEVELOPMENT PLAN (SANGZHI)

PEOPLE’S REPUBLIC OF CHINA HUNAN WATER RESOURCES DEPARTMENT – ADB LOANS PROJECT MANAGEMENT OFFICE

ASIAN DEVELOPMENT BANK

HUNAN FLOOD MANAGEMENT PROJECT TA 4324-PRC

ETHNIC MINORITY DEVELOPMENT PLAN (SANGZHI)

IDENTIFICATION N°: 13401501.R4 (EMDP)

DATE: 30TH JUNE 2005

This document has been produced by the SOGREAH Consultants as part of the ADB Project Preparation TA 4324-PRC (Job Number 13401501) This document has been prepared by the project team under the supervision of the Project Director following Quality Assurance Procedures of SOGREAH in compliance with ISO9001.

APPROVED BY INDEX DATE AUTHOR CHECKED BY PURPOSE OF MODIFICATION (PROJECT MANAGER)

A Final 30/6/05 ABH DC

INDEX CONTACT ADDRESS DISTRIBUTION LIST

PWRD-FLPMO (Mdm Li Kuangyun, Mr Zhu [email protected] ; [email protected]; 1 Jianrong, Mr Shen Honghui) [email protected] The Asian Development Bank (Ms Kay 3 [email protected] Cheong) [email protected], 4 SOGREAH (Head Office)

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TABLE OF CONTENT

1 INTRODUCTION...... 6 2 BACKGROUND ...... 7 2.1 PROJECT DESCRIPTION...... 7 2.2 ETHNIC MINORITIES IN HUNAN ...... 8 2.3 LEGAL FRAMEWORK...... 9 2.3.1 GOVERNMENT POLICY, PLANS AND PROGRAM...... 9 2.3.2 ADB POLICY ON INDIGENOUS PEOPLE ...... 9 3 ETHNIC MINORITIES IN THE PROJECT AREA...... 11 3.1 METHODOLOGY ...... 11 3.2 MINORITY POPULATION IN FOUR RIVER BASINS ...... 12 3.3 ETHNIC MINORITIES IN PROJECT COUNTIES (PA)...... 13 3.4 ETHNIC MINORITIES IN SANGZHI COUNTY ...... 16 3.5 ETHNIC MINORITIES IN PROJECT PROTECTED AREAS (PPA)...... 18 3.6 ETHNIC GROUPS AND THEIR DISTRIBUTION ...... 23 3.6.1 TUJIA...... 23 3.6.2 BAI...... 24 3.6.3 MIAO ...... 25 3.6.4 OTHER MINORITIES ...... 26 3.7 SOCIOECONOMIC CHARACTERISTICS OF MINORITY COMMUNITIES ...... 26 3.8 ON GOING MINORITY DEVELOPMENT PROGRAMS...... 29 4 PROJECT IMPACTS ON MINORITIES ...... 31 4.1 PAST FLOOD IMPACT ...... 31 4.2 PROJECT BENEFITS FOR DIFFERENT STAKEHOLDERS ...... 32 4.3 POTENTIAL NEGATIVE IMPACTS OF RESETTLEMENT ...... 35 4.4 EXPECTATIONS AND CONCERNS ...... 37 4.5 POVERTY REDUCTION MEASURES...... 37 5 ACTION PLAN ...... 40 5.1 SPECIFIC MEASURES/ACTIVITIES ...... 40 5.2 MITIGATION MEASURES ...... 40 5.3 ENHANCEMENT MEASURES ...... 42 5.4 PROJECT BENEFIT MEASURES ...... 43 5.4.1 BUDGET AND FINANCING SOURCES ...... 43 5.4.2 IMPLEMENTATION ARRANGEMENT ...... 44 5.4.3 MONITORING AND EVALUATION ...... 44

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LIST OF TABLES

Table 1-１: Minority Peoples in Hunan Province (2000)------8 Table 2-１: Ethnic Minority Population in the Four River Basins (2003) (1,000 persons) ------13 Table 2-２: Ethnic Minority Population in the Project Areas of the Four River Basins (2003) ------14 Table 2-３: Ethnic Minority Population in the Project Areas of the 8 Core Subprojects (1,000)------15 Table 2-４: Comparison of Economic Condition between Sangzhi and Hunan Average (2003)------18 Table 2-５: Basic Economic Conditions of Liyuan Town------20 Table 2-６: Demographic Profile of Residential Committees in PPA (1)------22 Table 2-７: Ethnic Profile in the Project Protected Areas for Sangzhi Subproject------23 Table 2-８: Bai Nationalities Autonomous Townships in Sangzhi County ------24 Table 2-９: Socioeconomic Characteristics of Minorities and Han in PPA------27 Table 2-１０: Minority Development Programs in Sangzhi County (2001-2004)------30 Table 3-１: Description of Flood Impacts by Different Groups in Project Area------31 Table 3-２: Positive Impacts Identified by Different Groups of Beneficiaries ------33 Table 3-３: Priority needs Perceived by from the Community ------37 Table 3-４: Change of Poverty Incidents in Sangzhi between 1986 and 2004 ------38 Table 4-１: Mitigation Actions ------41 Table 4-２: Enhancement Measures ------43 Table 4 -３: Project Benefit Measures ------43

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CURRENCY EQUIVALENTS

(as of June 2005)

Currency Unit – Chinese RMB CNY 1.00 – $0.121 $1.00 – RMB 8.27

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank CCO Chief Compliance Officer CNY Chinese Yuan DDC Design Drawing Collection DI Design Institute EA Executing Agency (Hunan Provincial Government) EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMP Environment Management Plan ENPV Economic Net Present Value EPB Environmental Protection Bureau FMC Flood Control Management Committee FS Feasibility Study FSE Feasibility Study Estimates FSRs Feasibility Study Reports FX Foreign Exchange GDP Gross Domestic Product GOC Government of China GIS Geographic Information System GPS Global Positioning System HFMP Hunan Flood Management Project HHB Hunan Hydrology Bureau HHPDI Hunan Hydro and Power Design Institute HPG Hunan Provincial Government IDI Interest During Implementation IRBM Integrated River Basin Management IEE Initial Environmental Examination JBIC Japan Bank for International Cooperation LB Left Bank LC Local Cost LIBOR London Interbank Overnight Rate

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LLG Local Leading Group LPMO Local (City) Project Management Office MHPDI Municipal Hydro and Power Design Institute MWR Ministry of Water Resources, PRC NPV Net Present Value O&M Operation and Maintenance PFD Provincial Finance Department PDRC Provincial Development and Reform Committee PIU Project Implementation Unit PLG Project Leading Group PPA Project Protected Area PPMO Provincial Project Management Office PRO Project Resettlement Office PPTA Project Preparation Technical Assistance PRC People’s Republic of China PWRD Hunan Provincial Water Resource Department RB Right Bank RBM River Basin Management RMB Chinese Renminbi (Currency Yuan = CNY) RP Resettlement Plan RRP Report and Recommendation to the President SCF Standard Conversion Factor SDRC State Development and Reform Commission SEIA Subproject Environmental Impact Area SIA Social Impact Assessment SIEE Summary Initial Environmental Examination SPIA Social and Poverty Impact Assessment SS Suspended Solids SSA Subproject Study Area TA Technical Assistance TOR Terms of Reference US$ United States Dollar VAT Value Added Tax WB World Bank WL Water Level

Currency I US$ = 8.28 CNY [Yuan = RMB]

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INTRODUCTION

This Ethnic Minorities Development Plan (EMDP) is prepared to ensure equitable sharing of the project benefits and mitigation measures by the concerned minority communities and individuals1 in the project area of the Sangzhi Flood Control Subproject, which is part of Hunan Provincial Flood Management Project in Hunan Province, People’s Republic of China (PRC). The EMDP for Sangzhi Subproject is based on the PPTA’s Resettlement Plan, the Social and Poverty Assessment, and consultation with ethnic minority groups, local county governments and their respective line agencies. A summary of distribution and socioeconomic characteristics of ethnic minorities in the project areas – four river basins, and 36 subprojects will be the context for such assessment. Based on review of social and poverty conditions of ethnic minorities in both Sangzhi County and the project protected areas, adequate provisions to enhance the economic conditions of minority groups have been integrated in project design. Provisions for special mitigation measures have been included in the resettlement plan, which will help ensure that ethnic minorities adversely affected by resettlement will also benefit from the project. Current government policies and programs for ethnic minorities further help to protect and enhance project benefits to ethnic minority groups. This plan targets the Tujia, Bai, and Miao nationalities in the project area, which account for about 68%, 26% and 5% of the total minority population in Sangzhi County.

1 Ethnic minority groups refer to those groups that are different from the majority ethnic group—the Han.

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1 BACKGROUND

1.1 PROJECT DESCRIPTION

The proposed Sangzhi Flood Control Subproject is one of the thirty-six subprojects under Hunan Flood Management Project. The subproject is located in urban areas of Liyuan Town (county town) in Sangzhi County, which is under jurisdiction of Municipality, located in the northwestern part of Hunan Province. It is neighboring in Hubei Province to the north, Yongding in Zhangjiajie City to the south, Longshan and Yongshun Counties of Xiangxi Tujia and Miao to the west, and and District of Zhangjiajie to the east. The urban area of Sangzhi County Town is the center of politics, economy, culture and science of Sangzhi County.

The county has an area of 3,474 square kilometers, and there are two river systems of Lishui and Youshui in the territory. They are merging in Liyuan Town - the county town of Sangzhi County. The Liyuan Town is surrounded by mountains with 300 to 400 meters of elevation. The and Youshui River have divided Liyuan Town into three parts with 250 - 270 meters of elevation. Most of houses in the town were built along these two rivers. Due to its geographic location, they often suffered from frequent floods, averaging once every three or five years, which endanger the lives and assets of those living in the town, and slow down the economic development of the area. The largest flood happened in 1998 with water level reaching 266 meters, and over 80 percent of county town was inundated. The power supply and communication were interrupted and 35,000 persons were affected, with direct economic losses being CNY 710 million.

The main objective of the proposed Sangzhi subproject is to 1) protect the urban areas of Sangzhi County from flood threats, and 2) to enhance watershed management in Lishui River Basins, which is an important part of Hunan’s integrated Flood Management System. The subproject will include following components: New construction of 8,490 meters of dike along both Lishui and Youshui Rivers; Construction of 9 culvert gates and 2 pump stations to form 5 drainage areas in Sangzhi County Town.

The area protected by the project will be 5.09 square kilometers. According preliminary feasibility study, the total cost of Sangzhi subproject would be CNY 92.1 million, out of which, 32 percent would be financed by ADB loan.

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1.2 ETHNIC MINORITIES IN HUNAN

There are as many as 55 ethnic minority groups2 in Hunan making up a population of 6.9 million or 10.3% of Hunan’s total population.3 A large portion of minorities live “ethnic minority areas”. Here, minority areas refer to three types of counties. One is officially recognized minority counties, which are entitled to a range of preferential treatment by national and provincial governments. The second type is counties with same minority status and benefits. The third type is those counties with more than 50% of their population being ethnic minorities, even though they have not yet been given minority status and benefits. In Hunan, there are 15 minority counties, which include 8 minority counties in one minority autonomous prefecture (Xiangxi Prefecture) and 7 separate minority counties, 2 unofficial minority counties enjoying minority county benefits, and 7 counties with more than 50% of the populating as minorities. Besides these minority counties, there are 100 ethnic minority townships in 34 counties. In Hunan, there are 8 minorities with a population over 10,000, they are Tujia, Miao, Dong, Yao, Bai, Hui (Muslims), Zhuang and Mongolia. These eight groups make up over 99.4% of the total minority population of Hunan. Most of them are located in the western Hunan (i.e., the Xiangxi Prefecture, and Zhangjiajie municipalities), and the minorities in the western Hunan account for 75% of Hunan’s total minority population. Table 1.1 presents the details based on the 5th national census.

TABLE 1-１: MINORITY PEOPLES IN HUNAN PROVINCE (2000)

Items Ethnic group Population % of minority % of total population groups Main group Han 56,863,506 89.7 Minority groups Tujia 2,639,534 41.2 Miao 1,921,495 30.0 Dong 842,123 13.1 Yao 704,564 11.0 Bai 125,597 2.0 Hui 97,368 1.5 Zhuang 23,559 0.4 Mongolian 15,869 0.2 Others 40,585 0.6 Sub-total 6,410,694 100 10.3 Total 63,274,200 Source: Fifth Consensus data, Hunan Statistical Year Book 2002.

2 In other words, all the 56 ethnic groups within China are represented in Hunan.

3 Assuming minority population growing in proportion with Han since 2000, the minority population in Hunan would be 6.86 million in 2003.

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1.3 LEGAL FRAMEWORK

1.3.1 GOVERNMENT POLICY, PLANS AND PROGRAM

After 1949 the PRC Government adopted a policy of ethnic equality, in which all groups are legally and constitutionally equal. Given the inferior social and economic conditions of most minorities, the government adopted a policy of positive discrimination in favor of the minority nationalities (minzu) to help them "catch up" with the mainstream population. To implement this policy, the Government first clarified, enumerated and mapped the identity of ethnic groups. PRC post-1949 policy defines nationalities (minzu) in very precise terms, based on, inter alia, shared language, territory, economic base, and traditions/culture. Under this definition, the Han constitute the dominant nationality in the PRC. Some minority nationalities (e.g. Hui and Man) have become assimilated into the Han language and cultural traditions - but are still recognized as minority nationalities. Since 1949 there has been a tendency for smaller ethnic groups to fuse and merge in the definition of officially recognized minority nationalities.

The 1954 Constitution specified mechanisms for exercising autonomy in minority areas. The 1974 Constitution reduced the financial autonomy, and other powers, of these areas. Some of these powers were restored in the 1978 Constitution and further extended by the State Council (1980) and the National Law of 1984. Since the early 1980s governments of autonomous areas have been able to decide on economic policy, including what to produce, some latitude in allocating government subsidies, and within set guidelines, education and budgeting. In 1982 the formulation of the one child per family directive by the State Council advocated more flexible approaches to planned parenthood amongst the minority nationalities.

Minority areas have special access to relief funds, loans, subsidies and tax relief, including a lower tax on grain, to assist in economic development. Minority people also benefit from points score system which places them in a higher rank than the main stream Han for university admissions. For the 8 provinces where minorities are concentrated (Guizhou, Yunnan and Qinghai provinces and the five minority autonomous regions of Inner Mongolia, Xinjiang, Guangxi, Ningxia and Tibet) government subsidies in the past have been substantial.

1.3.2 ADB POLICY ON INDIGENOUS PEOPLE

The ADB notes that often the social indicators, economic status and quality of life of minority people’s are below that of the mainstream population. While fully recognizing the sovereignty of the borrowing country, the ADB accepts that it has a responsibility for ensuring (i) equality of opportunity for national minorities and (ii) that its operations and assistance to developing member countries do not negatively affect the cultural identity,

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An EMDP should describe the socio-economic characteristics of minorities affected by the project, identify significant project impacts, both positive and adverse which affect them, include proposals to amend or redesign the project to minimize adverse effects and/or include an acceptable compensation plan. The MPDP should also provide a basis for project implementation and for monitoring and evaluating how the project deals with national minority peoples issues.

The ADB’s Handbook ‘Policy on Indigenous Peoples’ (Manila, 1999) sets out the criteria for determining whether or not an MPDP should be prepared. The key criteria are:

“… indigenous peoples should be regarded as those with a social or cultural identity distinct from the dominant or mainstream society, which makes them vulnerable to being disadvantaged in the processes of development” (p.6, op cit);

“‘the ISA determines that indigenous peoples are likely to be affected significantly ..or that indigenous peoples are disadvantaged or vulnerable to an intervention because of their social and cultural identity, an (MPDP) … must be developed.” (p.18, op cit); an EMDP should be prepared if a project “affects indigenous peoples adversely and significantly” (p. 19, op cit).

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2 ETHNIC MINORITIES IN THE PROJECT AREA

2.1 METHODOLOGY

In order to understand the basic social and economic profiles of the affected people and identify the impacts to be brought by the Project, a social and poverty assessment was carried out by the PPTA consultant with the assistance of Sangzhi Subproject PMO, which included collecting secondary data, and conducting interviews among different stakeholders. The focus group discussions and sample household survey, together with consultation of local government agencies provided much of the quantitative and qualitative materials that were used to prepare this report, which include stakeholder analysis, needs and concerns among women and ethnic minorities, and poverty profile for affected communities and individuals. It has also been used as the basis for identifying the potential project benefits and impacts, assessing their significance, and formulating complementary measures to enhance positive benefits and mitigate negative impacts.

A total of 52 sample households and 241 persons were surveyed from 8 residential committees or villages from Liyuan Town. Among these sample households, 37 of them or 71 percent were ethnic minorities, including 22 households and 104 persons of Tujia nationalities, 11 households and 51 persons of Bai nationalities, and 4 households and 17 persons of Miao nationalities. In addition, about 6 gender separated focus group discussions were conducted, followed with stakeholder interviews and key informant interviews among officials from relevant county agencies.

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2.2 MINORITY POPULATION IN FOUR RIVER BASINS

In order to have a basic understanding on distribution and profile of ethnic minorities in the project areas, a great deal of ethnic minority data was collected for the four river basins and the project areas for the Project. For the four river basins, Table 2-1 presents the distribution of different ethnic minority groups. In comparison with the Hunan average, the share of minority population in the four river basins is much higher, indicating relatively high concentration of ethnic minorities. Of the total population in the four basins, there were 6.8 million ethnic minority people, accounting for 13.3%. Among them, Tujia, Miao, and Dong are the main ethnic groups, accounting for 11%, 8% and 4% respectively. Majority of minority people are concentrated in the two western river basins, with ethnic minorities accounting for 52% in and 64% in Lishui. About 85% of the total minority population in Hunan Province is located within these two river basins.

In terms of distribution of different minority groups, Tujia nationalities mainly reside in Xiangxi Prefecture, Zhangjiajie and Municipalities. There were 2.44 million of Tujia nationalities in these three municipalities, accounting for 92.4% of the total Tujia people in Hunan Province. Miao nationalities are mainly living in Xiangxi Prefecture, Huaihua and Municipalities, with 1.87 million people and account for 97.2% of total in Hunan. Dong nationalities are mainly in Huaihua Municipality, with 801,200 persons or 96% of total Dong nationalities in Hunan. Yao nationalities are concentrated in City – the south end of Hunan, with 513,800 persons or 72.8% of the total Yao people in Hunan. Bai nationalities are mainly located in Zhangjiajie City with 104,600 persons or 82.9% of total Bai people in Hunan Province.4 Most of the minorities are concentrated in the mountainous regions in the north, west, and south of Hunan, bordering with neighboring provinces.

4 Almost of all Bai nationalities are located in Sangzhi County - one of the project counties under the Project.

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TABLE 2-１: ETHNIC MINORITY POPULATION IN THE FOUR RIVER BASINS (2003) (1,000 PERSONS)

Items Xiangjiang Zishui Yuanjiang Lishui Total Hunan Total Population 30,440.20 10,142.20 8,113.70 2,531.30 51,227.40 66,262.60 Han 29,610.40 10,043.60 3,866.40 913.5 44,433.80 59,317.30 Minority Total 829.8 98.6 4,247.30 1,617.80 6,793.60 6,945.30 % 2.7% 1.0% 52.3% 63.9% 13.3% 10.5% Tujia 28.4 1.6 1,269.60 1,474.40 2,774.00 2,796.80 Percent of Total 0.1% 0.0% 15.6% 58.2% 5.4% 4.2% Miao 21.9 13.3 1,979.30 26.2 2,040.80 2,047.40 Percent of Total 0.1% 0.1% 24.4% 1.0% 4.0% 3.1% Dong 7.2 5.2 873.4 0.5 886.3 888.1 Percent of Total 0.0% 0.1% 10.8% 0.0% 1.7% 1.3% Yao 562.7 34.6 81.4 0.3 679.1 740.1 Percent of Total 1.8% 0.3% 1.0% 0.0% 1.3% 1.1% Bai 1.7 0.1 19.9 111.8 133.6 134.3 Percent of Total 0.0% 0.0% 0.2% 4.4% 0.3% 0.2% Hui 8.6 36.9 13.9 2.1 61.5 102.3 Percent of Total 0.0% 0.4% 0.2% 0.1% 0.1% 0.2% Zhuang 21 0.7 1.4 0.3 23.4 24.4 Percent of Total 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% Others 178.2 6.1 8.4 2.2 194.9 212 Percent of Total 0.6% 0.1% 0.1% 0.1% 0.4% 0.3% Source: Hunan Provincial Ethnic Commission.

2.3 ETHNIC MINORITIES IN PROJECT COUNTIES (PA)

The proposed 36 subprojects under the Project will involve 47 counties or districts, which are defined as Project Areas (PA). Table 2-２presents the distribution of ethnic minorities in the project areas, which shows similar distribution patterns across the four river basins. Among 47 project counties, there was 3.07 million of ethnic minority population, accounting for 12.2% of the total population in the project counties. Among them, there were 1.5 million Tujia nationalities, accounting for 49% of the total minorities, 0.56 million of Yao nationalities, accounting for 18%, 0.45 million of Miao nationalities, accounting for 15%, 0.23 million of Dong nationalities, accounting for 7%, and 0.17 million of Bai nationalities, accounting for 3%. In terms of distribution of the ethnic minorities, 40% of them came from Lishui, 36% from Yuanjiang, 22% from Xiangjiang, and only 2% from Zishui.

Most of the minority people are located in three types of “minority counties”. The first type is official recognized ethnic minority autonomous counties. There are 5 such counties in the project areas, accounting for one third of them in Hunan. They are Jianghua, , Fenghuang, Baojing and Xinhuang Counties. The second type is non ethnic minority

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county but enjoying the same status and benefits of the minority counties. Sangzhi County is such county, accounting 50% of that in Hunan. The third type is non minority counties, but with more than 50% of the total population being ethnic minorities. Unlike the second type, they do not have minority county status and are not entitled to the benefits for minority counties. In the project areas, there are three such counties, accounting 43% in Hunan. They are Jiangyong, Cili and Shimen Counties.

Table 2-２: Ethnic Minority Population in the Project Areas of the Four River Basins (2003) (1,000) Items Xiangjiang Zishui Yuanjiang Lishui Total Hunan Total Population 13,885.6 6,249.2 3,149.5 1,800.6 25,084.9 66,262.6 Han 13,195.6 6,197.7 2,051.1 567.8 22,012.2 59,317.3 Total Minorities 690.0 51.4 1,098.4 1,232.8 3,072.7 6,945.3 Percent of Total 5.0% 0.8% 34.9% 68.5% 12.2% 10.5% Tujia 10.3 1.2 382.4 1,102.1 1,496.0 2,796.8 Percent of Total 0.1% 0.0% 12.1% 61.2% 6.0% 4.2% Yao 480.7 7.3 69.0 0.1 557.1 740.1 Percent of Total 3.5% 0.1% 2.2% 0.0% 2.2% 1.1% Miao 9.2 9.6 411.2 22.2 452.2 2,047.4 Percent of Total 0.1% 0.2% 13.1% 1.2% 1.8% 3.1% Dong 3.6 2.9 223.7 0.3 230.5 888.1 Percent of Total 0.0% 0.0% 7.1% 0.0% 0.9% 1.3% Bai 0.7 0.1 1.4 105.4 107.5 134.3 Percent of Total 0.0% 0.0% 0.0% 5.9% 0.4% 0.2% Hui 3.4 26.1 5.8 1.2 36.6 102.3 Percent of Total 0.0% 0.4% 0.2% 0.1% 0.1% 0.2% Zhuang 17.8 0.4 0.5 0.2 18.8 24.4 Percent of Total 0.1% 0.0% 0.0% 0.0% 0.1% 0.0% Others 164.4 3.9 4.4 1.5 174.1 212.0 Percent of Total 1.2% 0.1% 0.1% 0.1% 0.7% 0.3% Source: Hunan Provincial Ethnic Commission.

Of these 9 counties, 2 are from Xiangjiang, 3 from Lishui, and 4 from Yuanjiang. Its total population is 3.5 million, with 2.5 million being ethnic minorities, which accounts for 71%. The total minority population from these 9 counties accounts for 81% of the total minority population in the project areas (3.1 million). Of the total population, urban population was 0.8 million, accounting for 22.9%, which is only 67% of the project area average. The rural population was 2.7 million, accounting for 87.1%, which was more than 20 points higher than the average of 47 project counties. In other words, these minority concentrated counties have much lower urbanization level than the provincial average. There are 3.62 million mu of farmland in these 9 counties, averaging 1.3 mu per person, which is similar as the provincial average. But the overall economic development is relatively low compared with the project area average or Hunan Province. For example, the per capita GDP in these 9 counties was only CNY 4,242 in 2003, which was only 61% of the provincial average and 68% of the PA. The rural per capita income was CNY 1,620,

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which is only 69% of the project area average and 65% of the provincial average. Along with income disparity, considerable difference also exists in education levels, and employment structure between Han dominated regions and minority dominated regions. For example, illiterate rate was 7.8% among the minority regions in Hunan, which was 3 points higher than that of Han dominated regions; and percent of the minorities with high school or above education was 12.1%, which was 3.24 points lower than that of Han nationalities.

Since most these minority counties are located in the high mountains with poor access, considerable poverty exists in these counties. Of these 9 minority counties, 8 are national or provincial poverty counties. There are 990 poverty villages and 0.62 million rural poor, accounting for 23% of the total rural population in the 9 counties, of which the extremely poor account for 25%. Of these counties, only Sangzhi was included as one of the core subprojects. For Sangzhi County, about 82% of the total population in project protected areas and 88% of the total population in the county are ethnic minorities. Most of them are Tujia, Bai, and Miao nationalities. To ensure that adequate attention will be paid to the affected minorities through consultation and identification of project impacts and mitigation measures, an Ethnic Minority Development Plan (EMDP) has been prepared for Sangzhi Subproject. For the remaining 7 core subprojects, although there is some minority population in Chenxi and Huaihua, none of them exceed 10%. More importantly, there are no concentrated minority communities in the project protected areas (see Table 2-３). Therefore, there will be no need to prepare EMDPs for the other core subprojects. For those non-core subprojects located in these 9 minority counties, an ethnic minority development framework will be developed, which will provide basic principle and guideline for development of individual EMDPs during the project implementation.

TABLE 2-３: ETHNIC MINORITY POPULATION IN THE PROJECT AREAS OF THE 8 CORE SUBPROJECTS (1,000)

Total Of which Subproject Total Population Han Percent of Total Minorities Tujia Bai Miao Yao Yongzhou 1,084.0 1,075.5 8.5 0.8% 0.2 0.0 0.4 5.8 412.3 410.3 2.0 0.5% 0.6 0.0 0.6 0.1 Wugang 735.8 726.1 9.7 1.3% 0.0 0.0 6.4 0.1 Xinhua 1,288.3 1,287.8 0.5 0.0% 0.1 0.0 0.1 0.0 1,244.9 1,243.0 1.9 0.2% 0.2 0.0 0.2 0.1 Huaihua 324.4 294.1 30.3 9.3% 4.9 0.3 12.2 1.6 Chenxi 518.1 474.0 44.1 8.5% 1.2 0.1 6.3 35.1 Sangzhi 431.7 53.3 378.4 87.7% 237.0 103.9 21.6 0.0 Total 6,039.5 5,536.4 503.0 8.3% 286.1 104.3 47.8 42.8 Percent 100.0% 91.7% 8.3% 100.0% 56.9% 20.7% 9.5% 8.5% Source: Hunan Provincial Ethnic Commission and field surveys.

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2.4 ETHNIC MINORITIES IN SANGZHI COUNTY

Sangzhi County is located in the northwestern part Zhangjiajie City. It has 3,474 km2 of land area with average density being 124 persons per km2. Most of the area made of mountains and rivers with only 6.6% as farmland (22,840 ha), averaging 0.9 mu per person, lower than the provincial average. In 2003, there are 128,100 households and 431,700 people with 48% being female and 52% as male. Of the total population, 52,900 persons are living in urban area, accounting for 12.3%.

There are 16 ethnic minorities in Sangzhi and most of them are Tujia, Bai, and Miao nationalities. All three ethnic minorities are native people, who have been living there for over 800 years. The total ethnic minority population in Sangzhi was 378,744 persons in 2003, accounting for 88% of the total population.5 Among them, Tujia nationality accounts for 63%, Bai nationality accounts for 27% and Miao nationality accounts for 6%. Before establishment of Zhangjiajie Municipality in 1988, Sangzhi was official minority county under jurisdiction of Xiangxi Tujia and Miao Autonomous Prefecture. After becoming part of Zhangjiajie City, Sangzhi County was no longer an official minority county. However, given the high concentration of ethnic minority population, Sangzhi has been granted special minority status and entitles most policies and privileges of ethnic minority counties.

Sangzhi County is one of the 8 national poverty counties in Hunan Province. Its overall economic development is still lagging behind. In 2003, per capita GDP in Sangzhi was only CNY 2,474, which was about one third of the provincial average (

5 The minority population figure collected in the survey is slightly lower than the data set provided by Hunan Ethnic Affairs Commission.

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Table 2-４). The rural per capita income was CNY 1,223, which is about 50% of that in Hunan Province. Due to poor natural condition and harsh climate, considerable poverty exists in Sangzhi. Of the total rural 378,800 persons, 115,000 are rural poor (below CNY 900), accounting for 30.4%. Among them, 26,000 persons are extremely poor with per capita income below CNY 627. Majority of rural poor are concentrated in 180 key poverty villages, which account for one third of total villages in the county (558 villages). Among them, only 58% have road access, 34% have tap water, and 67% have post service, which are significantly lower than the provincial average. In addition, urban poverty is becoming an increasing issue in Sangzhi. If using local official urban poverty line of CNY120 per person per month, there are 8,794 persons in 3,143 households under the urban poverty line, accounting 16.6% of the total urban population in Sangzhi.

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TABLE 2-４: COMPARISON OF ECONOMIC CONDITION BETWEEN SANGZHI AND HUNAN AVERAGE (2003)

Social and Economic Indicators Sangzhi Hunan Percent Total GDP (CNY billion) 0.94 4639 0.02% Per Capita GDP (CNY) 2,474 6,963 35.5% Per capita farmland (mu) (1 h a = 15 mu) 0.90 1.30 69.6% Per capita income in rural area (CNY) 1,223 2,472 49.5% Per capita income in urban area (CNY) 2,775 7,075 39.2% Source: Hunan Provincial Statistical Yearbook 2004 and field survey.

2.5 ETHNIC MINORITIES IN PROJECT PROTECTED AREAS (PPA)

In Sangzhi County, the proposed flood control subproject will directly protect part of urban area in Liyuan Town, which is defined as the project protected area (PPA). Based on 1 in 20 year return flood protection standard, the proposed flood works will form three protection zones along the Youshui and Lishui Rivers. They include the main urban protection zone, Gaojiaping Protection Zone and Caijinta Protection Zone. The total land area of these three protection zones is 5.09 km2, involving 9 residential committees. All of them are under administration of Liyuan Town. Liyuan Town is one of 38 township units in Sangzhi County. It includes 21 administrative villages and 10 urban residential committees, representing both rural and urban part of the town. In 2003, there were 25,840 households and 60,061 persons in Liyuan Town, accounting 20% and 14% of Sangzhi County respectively. Among them, 82% are ethnic minorities with 64% as Tujia nationalities, 28% as Bai nationalities, and 7% as Miao nationalities. The basic economic condition is quite different between the rural part of and the urban part of Liyuan Town. In rural part of the town, there are 21 villages with 5,201 households and 20,141 persons. About 99% of population is rural residents with per capita farmland being 0.62 mu. In urban part of the town, there are 10 residential committees with 20,539 households and 39,920 residents. Rural population is only 1,064 rural residents, accounting for less than 1%. There are only 504 mu of farmland, average 0.47 mu per rural individual. The PPA will cover most of the urban part of Liyuan Town, involving 9 urban residential committees. There are 17,978 households and 34,926 persons in PPA, accounting 58.2% of the total population in Liyuan Town (

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Table 2-５).

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TABLE 2-５: BASIC ECONOMIC CONDITIONS OF LIYUAN TOWN

Liyuan Total Total Total Rural Urban Total Per capita Villages Town Households Population Residents Residents Farmland Farmland Rural Area 21 5,291 20,141 20,008 133 12,461 0.62 Urban Area 10 20,549 39,920 1,064 38,856 504 0.47 Total 31 25,840 60,061 21,072 38,989 12,965 0.62 PPA 9 17,978 34,926 1,064 33,826 494 0.46 Percent 29% 37.4% 58.2% 5.0% 86.8% 3.8% Source: Sangzhi PMO and field survey.

Of the total population, 26% are from 9 residential committees, and 74% from various institutions and enterprises. The male and female ratio is 100: 99. 33,826 persons or 97% are urban residents. Of total population, there were 32,239 ethnic minorities, accounting for 92%.

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Table 2-６provides detailed information among 9 residential committees within PPA. Most of these 9 villages or residential committees are basically urban communities, with 97% being urban. Even excluding those people from enterprises and institutions, about 88.4% of the total population has non-agricultural status. For the remaining 11.6% of rural population, the average farmland is only 0.46 mu. Most of them are used to grow vegetables and other cash crops. The continuous urban expansion and farmland acquisition around the county town is the main cause for such change.

As the county town of Sangzhi County, Liyuan Town has relatively developed secondary and tertiary activities. There are 2,417 various sizes of enterprises in Liyuan Town, including 11 township enterprises, 25 village enterprises and 347 privately owned enterprises, and 2,034 individual small businesses. The total gross output value was CNY 459 million. The gross output for agricultural sector was CNY 288 million, with per capita income for rural population being CNY1,700. The total grain production was 7,201 ton or 346 kg per person. In 2003, GDP in the town was CNY 215 million, averaging CNY 3,580 per person, which is 45% higher than the county average.

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TABLE 2-６: DEMOGRAPHIC PROFILE OF RESIDENTIAL COMMITTEES IN PPA (1)

Residential Total Total Male Female Rural Urban Percent of Committees Household Population Population Population Population Population Urban (Villages) Population Wuliqiao 166 398 198 200 140 258 64.8% Wenminglu 324 848 423 425 99 749 88.3% Gaojiping 365 1680 816 864 308 1372 81.7% Dongzhengjie 385 905 467 438 30 875 96.7% Hepingjie 281 888 451 437 20 868 97.7% Wangjiaping 322 917 452 465 59 858 93.6% Zhujiatai 200 1200 589 611 86 1114 92.8% Changzhenglu 147 1471 736 735 250 1221 83.0% Wenchangjia 349 848 449 399 72 776 91.5% Enterprise & Inst. 15,439 25771 12985 12786 25771 100.0% Total 17,978 34,926 17,566 17,360 1064 33,862 97.0% Note: For county institutions and enterprises, no household figure is available. Source: Sangzhi PMO.

TABLE 2-6: DEMOGRAPHIC PROFILE OF RESIDENTIAL COMMITTEES IN PPA (2)

Residential Total Per Capita Total rural Male Female Minority Percent of Committees Farmland Farmland Labor Labor Labor Population Minority (villages) (mu) (mu) Wuliqiao 15 0.11 85 45 40 350 88.0% Wenminglu 39 0.39 60 32 28 720 84.9% Gaojiping 5 0.02 141 78 63 664 74.7% Dongzhengjie 9 0.30 18 10 8 752 88.7% Hepingjie 0 0 5 3 2 784 85.5% Wangjiaping 0 0 30 16 14 1,011 84.2% Zhujiatai 81 0.94 40 22 18 691 76.3% Changzhenglu 345 1.38 150 78 72 1,226 73.0% Wenchangjia 0 0 38 19 19 1,214 82.5% Enterprise & Inst. 0 0 0 21,247 82.4% Total 494 0.46 567 303 264 28,659 82.1% Note: For county institutions and enterprises, no household figure is available. Source: Sangzhi PMO.

In the project protected area, among total beneficiaries, 28,659 persons are ethnic minorities, accounting for 82.1%. Most residential committees have about over 70% to 80% of ethnic minorities. The dominant minority groups are Tujia, Bai, and Miao, which make up 98.9% of the total minority populations in the PPA. These minority persons are entitled with the same rights to education and employment as Han people and have not obvious difference in their economic conditions and income levels. Table 2-７provides composition of ethnic background among communities in PPA.

During the field assessments, a number of participatory assessment sessions,

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consultations, discussions and interviews were held with the minority population in the PA. These included staff of project PMO, county minority affairs bureau, poverty alleviation office, urban and rural residents, poorest of the poor, entrepreneurs, traders and sellers in the selected communities. Because of the frequent floods and serious impacts, during consultation, the different stakeholders all expressed their strong support toward the project. All of them marked the flood control project as the first priority followed with more income generation opportunities, better local road within the community, better access to credit, better education conditions and lowering education fee, and better health care service.

TABLE 2-７: ETHNIC PROFILE IN THE PROJECT PROTECTED AREAS FOR SANGZHI SUBPROJECT

Residential Ethnic Ethnic Groups Total Committees/ Minority Population Han Tujia Bai Miao Yao Hui Zhuang Other Villages Population Wuliqiao 398 48 350 217 99 24 0 9 0 1 Wenminglu 848 128 720 475 176 62 0 7 0 0 Gaojiping 888 224 664 348 183 133 0 0 0 0 Dongzhengjie 848 96 752 470 223 51 0 4 0 2 Hepingjie 917 133 784 508 219 50 0 5 0 3 Wangjiaping 1,200 189 1,011 651 275 75 1 4 1 3 Zhujiatai 905 214 691 469 171 48 0 0 0 3 Changzhenglu 1,680 454 1,226 795 336 86 0 4 0 4 Wenchangjia 1,471 257 1,214 790 341 64 1 10 1 6 Enterprise & Inst. 25,771 4,524 21,247 13,554 5,869 1,574 9 166 7 67 Total 34,926 6,267 28,659 18,277 7,893 2,169 11 210 10 90 Percent 100.0 17.9 82.1 63.8 27.5 7.6 0.0 0.7 0.0 0.3 Source: Sangzhi Subproject PMO and field survey.

2.6 ETHNIC GROUPS AND THEIR DISTRIBUTION

2.6.1 TUJIA

The Tujia people live predominantly in (i) western and northwestern Hunan 6 ; (ii) southwestern Hubei7; (iii) eastern . In the project area the Tujia is the largest minority group making up 63% of the total minority population in Sangzhi. This ethnic minority group was highly assimilated to Han in many aspects. Distinctions between the Tuija and Han are considered to be very slight although in more remote areas there is a greater maintenance of Tuija cultural and social identity than in most of the more readily accessible townships. The Tujia people in western Hunan have resided since the year 910 or so. The origin of Tujia people has been associated with one of the

6 Mainly in the Xiangxi Tujia and Miao Autonomous Prefecture and the Zhangjiajie Municipality 7 Mainly in the Ensi Tujia and Miao Autonomous Prefecture.

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following three versions: (i) they are descendants of the ancient Ba people; (ii) they moved to western Hunan from Guizhou Province; and (iii) they moved from Jiangxi Province towards the end of the Tang Dynasty (618-907). Most of local legends, as discovered during the PPTA field surveys, support the third origin. The Tuija cannot be readily identified as an indigenous group in the context that they descended from population groups in the area before the imperial Chinese state was created.

2.6.2 BAI

The Bai people as a minority group with long history live mainly in Yunan Province with small numbers in Guizhou, Sichuan, and Hunan. In Hunan, Sangzhi County is the only place where Bai nationalities are living. The ancestors of Bai people had settled in Sangzhi in 1252, after participating the fighting between Mongols and South Song Dynasty. There have been over 800 years since they settled there. There are 103,900 Bai people in Sangzhi, accounting for 24% of the total population. About half of them are concentrated in 7 Bai minority townships. All of them were established in 1984. The total population is 75,285, including 70,903 ethnic minorities, of which 53,216 are Bai nationalities, accounting for 75% (Table 2-８). The total land areas of the 7 Bai nationality townships are 574.2 km2, accounting for 16.5% of the total area in Sangzhi (3,474 km2). None of these townships are part of project protected areas. Located in valleys, these 7 townships are not considered as poor townships in Sangzhi.

TABLE 2-８: BAI NATIONALITIES AUTONOMOUS TOWNSHIPS IN SANGZHI COUNTY

Township Total Total Land Bai Percent of Population Minorities Area (km2) Nationalities Total (1) (2) (3) (4) (4)/(1) Liujiaping 11,609 10,724 38.2 10072 86.8% Mahekou 10,157 10,123 126.6 8300 81.7% Zoumaping 7,820 7,680 68 6800 87.0% Lingxihe 4,721 4,580 92 3418 72.4% Furongqiao 13,020 12,760 108 7232 55.5% Maidiping 4,914 4,816 50.4 4500 91.6% Hongjiaguan 23,044 20,220 91 12894 56.0% Total 75,285 70,903 574.2 53216 70.7% Source: Hunan Ethnic Affairs Materials Collection, Hunan Minority Affairs Commission 2003.

The Bai people have a linguistic identity different to that of the dominant society. Their oral language belongs to the Tibetan-Myanmar group of the Chinese-Tibetan linguistic group. However, for the Bai people in Sangzhi, most of them could not speak such language. All of them speak Chinese with local accent. There are some traces of the old language in their daily conversations. The Bai people prefer white color clothing. The male often wear white clothing with white clothing wrapping on the head, and female clothing is more colorful with silver ear rings. Bai women and men are very good at singing. There are many Bai folk songs with wide audience. Other cultural markers of the

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Bai people include the unique courtyard houses with white wall and detail brick works.

2.6.3 MIAO

The Miao people ranks third in Sangzhi County, despite being the largest ethnic minority groups in Xiangzi Tujia and Miao Autonomous Prefecture. With a population of more than 7 million in China, they are found mainly in (i) Guizhou, Yunnan, Hunan and Sichuan provinces, and (ii) Guangxi Zhuang Autonomous Region. A few also live on the Hainan Province and in southwest Hubei Province. In Sangzhi, there are 21,600 Miao nationalities, accounting for 5.7% of the total minority population. Most of them are scattered in existing Tujia dominated rural villages and urban communities. Only in a few upland villages, they are concentrated by Miao people, which maintains the unique Miao culture reflected in most Xiangxi Prefecture.

The Miao people have a linguistic identity different to that of the dominant society. Their oral language belongs to the Miao-Yao group of the Chinese-Tibetan linguistic group. Western Hunan is host to one of the three main dialects8 in China: the other two dialects can be found in eastern Guizhou, Sichuan and Yunnan. However, many of the Miao who live in the valleys (preferred place of settlement used to be at higher elevations in upland areas) have integrated with the Tuijia and speak fluent Chinese. Older people in the mountainous areas generally only speak Miao while most of the younger people are bilingual in both the Miao and Chinese languages although the degree of fluency in the Chinese language depends on, among other factors, length of time spent in school and time spent working in areas of Hunan or elsewhere in China where it is essential to use Chinese as the everyday language of communication. Miao who live in the villages and townships often speak Chinese with a broad accent that sometimes makes it difficult for non- Miao speaking Han Chinese and other ethnic minority groups to understand the Miao. Nevertheless, non-Miao that have ongoing interaction with the Miao do not appear to have much difficulty understanding present day Miao on the project area speaking Chinese.

Specific cultural markers that set the Miao apart from other ethnic groups in China is there own unique dancing and singer. Miao women and men are very good dancers and singers and are very proud of their dance and music culture. Miao women like wearing silver and artisans skilled in making silver artifacts for women to wear are highly valued. Miao embroidery is also considered to reflect a high level of creativity and Miao women who are competent at embroidery are highly valued in their own community. The Miao are also very good at making an ornate range of pipes for smoking tobacco. Other cultural markers of the Miao in the project area include the smoking of pork, which is considered a delicacy not only among the Miao but other ethnic groups as well. Finally, of course there are the distinctive Miao houses with characteristic Miao designed roofs that date

8 It is recognized in relation to the dialects of the Miao the reference is not simply to a dialect but a language with distinct grammatical and phonological differences from the Chinese language. The same principle applies to the oter ethnic minority languages referred to in this EMDP.

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back many centuries.

2.6.4 OTHER MINORITIES

Over 10 other ethnic minorities, including Yao, Hui, Mongolian, etc., are present in PA. These minorities account for less than 5% of the total minority population and they are mostly individual households who are settled in urban centers. None of these minorities are native to the project area.

2.7 SOCIOECONOMIC CHARACTERISTICS OF MINORITY COMMUNITIES

For both the whole county and the project protected area in Liyuan Town, since the ethnic minorities are the majority among different townships and villages, the general social and economic profiles of these communities will be the profiles for ethnic minorities. There are some specific characteristics relevant to Tujia, Bai and Miao in the project areas:

Although some of older Tujia and Miao people in remote villages still speak their own languages, most of them can speak Mandarin fluently. This is particularly true for young people and those in the urban area.

Among these ethnic minorities, there are wide spread practice of inter-marriages between the Tujia and Han, Bai and Han, Bai and Tujia, and so on. For example, among sample households, half of them are mixed families. These ethnic groups have been living in harmony for many years. They share similar believes in various kinds of nature gods. Therefore, the identities of ethnic background are quite weak among them. People could only identify their ethnic background through their surnames instead of distinctive language and living style.

According to the interview with officials from the county poverty alleviation office and ethnic affairs bureau, these three ethnic groups have similar economic activities (agriculture and livestock) and demonstrate similar levels of income and economic development. In other words, the level of economic development in different communities is more attributed to different natural environment and infrastructural conditions (such as high elevation, poor access, limited irrigation, and poor soil condition) than the difference of ethnic background, since majority of population are ethnic minorities.

The results of sample household survey in the project protected area also confirmed such fact. Table 2-９ presents the socioeconomic characteristics of the sample households in the PPA and the rural sample households in the county. As one can tell, there is no significant difference in terms of income and social economic conditions between Han families and minority families in the project protected area. In fact, the income per capita and education levels among the minority households seem to be higher than that of the Hans. The Han families seem to have larger housing space, more farmland and higher non-farm incomes than that of minority families. On the other hand, the difference between the sample households in PPA and the county average is much greater, which is

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reflected in most aspects, such as education, income level, living condition, and non-farm income activities.

TABLE 2-９: SOCIOECONOMIC CHARACTERISTICS OF MINORITIES AND HAN IN PPA

Category Han Minorities Rural Average Indicator Unit (12 sample HHs) (25 sample HHs) In Sangzhi County *

General Average HH Size Persons 4.0 5.1 4.0 Per capita annual income (median) CNY 1,341 1,395 1.223 Adult Illiteracy 2.1% 7.8% 19.5% Primary school graduate 16.7% 19.5% 45.4% % Education 28.6% Middle school graduate 37.5% 32.8% High school graduate 41.7% 37.5% 6.5% Above high school 2.1% 2.3% 0.0% Cultivated land per person Mu 0.39 0.33 0.90 Grain Production per Person Kg 338 338 473 Agriculture Housing spaces per personj M2 95.9 77.4 25.1 Agricultural Inputs per person CNY 1,752 1,125 314 Agriculture 19.3% 22.5% 49.8% Income % HH with Animal Husbandry 8.7% 21.3% Source source 26.8% Non-Farm 72.0% 50.7% 28.9% Farm vehicle 17% 20% n.a. Motorcycles 33% 24% n.a. Assets Air Conditions % HHs 33% 56% n.a. Color TV 83% 100% n.a. Mobile Phone 42% 48% n.a. Source: Field survey and Sangzhi County 2001 Statistical Yearbook.

Poverty In Sangzhi County, there is considerate rural poverty with 115,000 persons with per capita annual income below CNY 900, which accounts for 30.4% of the total rural population. Among them, 26,000 persons or 22.6% are extremely poor with per capita income below CNY 627. Most these rural poor are distributed among 180 poverty villages in 38 townships. In Liyuan Town, were the PPA is located, there are 5 poverty villages and 3,120 rural poor, accounting for 14.8%% of the total rural population in Liyuan Town, which is about half of the poverty incidence in the county. None of these poverty villages are located in PPA. There are still 380 rural poor in PPA, accounting for 12.3% the total rural poor in Liyuan Town, and 0.3% of total rural poor in Sangzhi County. Given the relatively small proportion of rural people in PPA (1,064 persons), the rural poverty incidence is 35.7% in PPA.9 In terms of urban poverty, there are 4,336 urban poor in PPA, accounting for 49.3% the total urban poor in Sangzhi (8,794 persons). The resulted urban poverty incidence in PPA is 12.8%. The composition of urban poor includes former employees of state owned and collectively owned enterprises (laid off workers, retirees,

9 Due to the special status of these communities, it is difficult to obtain definite statistics on rural poverty. On the other hand, urban poverty number is more accurate.

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employees currently without work, etc.) and various urban vulnerable people, such as those without working capacity, disabled, elderly, and landless farmers.

Income. In Sangzhi County, the average per capita income among rural population in 2003 was CNY 1,223. About 28.9% of the income came from non-farm sources. In PPA, which covers most of the urban part of Liyuan Town, the average per capita income among 9 residential committees was CNY 1,648, which is 34.8% higher than the county average. In comparison, the average annual income among 21 villages (rural part) in Liyuan Town was CNY 1,164. The better infrastructure and easy access to non-farm based income activities in 9 urban residential committees might explain such difference, which was confirmed from surveyed sample households in PPA. Among 37 sample households, per capita income was CNY 1,379, with 57.2% of income coming from non- farm sources. Among them, per capita income among Han families was CNY 1,341, which is slightly lower than that among minority families (CNY 1,395).

Education. In PPA, according to the sample survey (Table 3-9), there is some difference between Han families and minority families in terms of their education background. For example, minority families have higher illiterate rate or 7.8% compared with 2.1% among Han families. Han families seem to have higher number of people with high school education (41.7%) than that of minority families (37.5%). However, if comparing the education conditions among the rural people in Sangzhi, such difference is not significant. In other word, both Han people and minority people from PPA have much better education conditions compared with that the county average. For example, the illiterate rate in the county was 19.5%, which is more than 3 times higher than the people in PPA (6.3%). The percent of people having high school or above education among PPA was 40.9%, which is 6.3 times of that in the county.

Agriculture. Since majority of rural people are relying heavily on planting as their main source, the availability of irrigation is one important indicator of farmland productivity. In Liyuan Town, of 12,965 mu farmland, 86% are irrigated farmland. In Sangzhi County, of the total farmland, there are only 7,733 ha of farmland with irrigation, accounting for 33.9% of the total farmland (22,840 ha). Among them, the farmland with all year round of irrigation is only 4,733 ha, accounting for 20% of the total farmland.

STIs/HIV/AIDS Transmission. Fortunately, no HIV/AIDS cases were found or reported in the project county. The construction of the flood control works will bring quite a few construction workers to the project area, although most unskilled laborers will come from nearby villages. These workers will unavoidably interact with local minority population. Therefore there would be increased risk of exposure to HIV/AIDS and STIs for minority population. Gender Aspects. China is committed to gender equality and women and men have enjoyed an equal status by law. Female participation in agricultural activity is high in China, as it is in many parts of the world. In the communities surveyed10, the basic

10 2 group discussions were held with women – 1 in rural village and 1 in urban residential committees. Most participants

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household principle is one of men and women sharing the farming work. Women also undertake most of the additional childcare and household maintenance tasks as well as looking after the livestock. Sharing of financial resources was also common, especially where most income came from agriculture. However, one visible difference between men and women in the project affected communities is their education background. According to surveyed individuals, less than 20% of female labors have middle school or above education, and 30% of them are considered as illiterate or semi-illiterate. In contrast, for male labors, 80% of them have middle school or higher education, and none of them are illiterate. Because of this difference, there is considerable difference in terms of income generation skills. In general, the number of male labors with specific income generation skills is almost doubled that among female labors. Female labors are mainly limited in small trade in local area, while male labors tend to be concentrated in construction, transport, business, and manufactures. According to Sangzhi Women Federation, the number of women who went out as migrant labors is relatively small compared with other counties, which is mainly contributed by low education background, traditional attitude, lack of skill and language barrier (this is mainly for middle aged women). Because of such constraint, in group discussions, most of female participants ranked skill training as high priority among various activities.

2.8 ON GOING MINORITY DEVELOPMENT PROGRAMS

In autonomous region/prefecture/county in China, all activities are minority development oriented. In other words, central task of the autonomous governments is to promote minority people’s development. Even though Sangzhi is not an official minority county after being transferred from Xiangxi Tujia and Miao Prefecture to Zhangjiajie Municipality in the 1980s, it is still being treated as a minority county by the provincial government. This enables Sangzhi to obtain some additional support for its minority people. The county has its own master plan and sector development plans support the development of ethnic minorities. The sector development plans include: poverty reduction and development plan agricultural and forestry development plan; industrial development plan; women’s development plan; children’s development plan; educational development plan; transport development plan; public health development plan; and others.

These plans are often linked with various programs, e.g., land conversion program is linked with forestry development plan and food for work program in linked with poverty development plan. Budgets for implementing these plans, as well as for other activities, are

are minorities.

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pre-determined and specified. In other words, there is hardly any flexible money available for additional activities imposed by such project like this ADB road development project11.

In addition to the sector development programs, there are specific minority development programs in the project counties that are administrated by Sangzhi Ethnic Minority Affairs Bureau. The programs are formulated based on the needs of each county through bottom-up and top-down approaches. Minority development programs include the provisions of providing social infrastructures (primary/secondary school, health clinic, housing upgrading, and recreation facilities), economic infrastructures improvement (rural road, water supply and electricity connection), and capacity building (training on farming, and training on income-generating activities with microfinance). The minority development programs often join hands with poverty reduction programs.

As a formal minority county within the Xiangxi Tujia and Miao Autonomous Prefecture, Sangzhi obtains specific minority development oriented support for all sectors from higher-level governments. In addition, the minority affairs sector itself, had also independently implemented a number of development programs with a total investment of CNY 1.85 million each year, which included CNY 1.5 million from national grant to be used for supporting minority villages in their poverty alleviation efforts, such as food and clothing, village infrastructure and production development; and CNY 350,000 from Provincial Ethnic Affairs Commission each year to be used to provide support for education and health care for minority people. In addition to these government support, Sangzhi County also received a number grants from various NGOS, such as those from Hong Kong and other counties, which provide funding for rebuilding school buildings, improving health, water resources as well as repairing churches (Table 2-１０).

TABLE 2-１０: MINORITY DEVELOPMENT PROGRAMS IN SANGZHI COUNTY (2001-2004)

Programs Sponsor Agencies Investment (Yuan) Implementation Agencies Production Development Activities National Grant CNY 500,000 per year SMAB Rural infrastructure – electricity, road, and water National Grant CNY 500,000 per year SMAB Food and Clothing for Minority Villages National Grant CNY 500,000 per year SMAB Minority Children Education Support Provincial Grant CNY 200,000 per year SMAB Minority Heath Care Assistance Provincial Grant CNY 150,000 year SMAB Rural Education Support Hong Kong NGO CNY 150,000 SMAB Rural Education, heath, irrigation and churches Finland Trust Fund CNY 1 million SMAB Total CNY 1.85 million + Source: Sangzhi Minority Affairs Bureau (SMAB)..

11 Specifying budget uses is also an anti-corruption measure

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3 PROJECT IMPACTS ON MINORITIES

3.1 PAST FLOOD IMPACT

Sangzhi County is located in the upstream of Lishui River. It has suffered from the frequent flood and water logging disasters. According to historic records, flood disasters took place every 3~5 years, which not only endanger the lives and properties of its population and slow down the economic development in the county town. Since 1949, on August 22 1963, the daily rainfall reached 153 mm with part of the area at 185 mm. The Lishui River raised by 13.8 meters. The flood caused direct economic loss of Y5.06 million with 6 fatalities. On July 22 1998, the water level was raised to 266.27 mm, exceeding warning water level by 11.27 meters and largest flow was 9,330 cubic meters per second. About four fifths of county town was inundated with 5.34 square kilometers and 35,000 persons were affected. About 10,000 persons were trapped by flood and 6,000 persons had to be evacuated. The water level was raised to third floors for over 100 county agencies or enterprises. The electricity supply and water supply for the county town was completely stopped. The estimated direct economic loss for the county town amounted to CNY 710 million, averaging CNY 11,820 for the whole Liyuan Town. During the site survey and interview, impacts of the flood in terms of both economic loss and personal experience were described by different groups of participants, which were provided in Table 3-１.

TABLE 3-１: DESCRIPTION OF FLOOD IMPACTS BY DIFFERENT GROUPS IN PROJECT AREA

Groups Actual Flood Impacts to the Communities Rural Areas Group • All farmland were flooded with no harvest; (6 male and 5 • 20 houses were inundated or damaged; female) • Small shops and businesses were seriously affected; • Articles in the house flooded away; • Schools were interrupted; Water remain there for 2 weeks; Urban Areas Group • Water came up to second floor of residential committee office; (5 male and 5 • Residents in lower areas have to be relocated since their houses were damaged; Some of them female) had to move up to 4 times; • residents could not sleep well during summer, afraid taking off clothes; • and males had to be home every night in case flood; Small business • In 1998, since flood came too quick, inventory of clothing store could not be moved and lost several persons thousand yuan. One rice store next door lost over 100,000 yuan. • Small restaurant were flooded, and all belongs were washed away; • After 1998, there were a few small floods almost once each year; • Repairing the damaged house by flood Factory • Due to lower location, the plant was affected by flooding each year, including both structures and products;

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Groups Actual Flood Impacts to the Communities • A small dike was built by factory around the plant, which was no use during large flood. • During flood season, the factory had to have someone monitor flood situation every night. • All foundations of factory buildings were raised, which increased total construction cost. • Work stoppage during flood and the maintenance after flood; • Mud cleaning and sterilizing for a week after flood Sources: Field visit and small group discussions.

Among the poor people in PPA, frequent flood is one important factor for causing such poverty. According to the estimate made by Sangzhi Poverty Alleviation and Development Office, about 50 percent of rural poor in Liyuan Town were caused by 1998 flood. If there were no flood in those communities, the poverty incidence would be much lower. Such impact by the flood is reflected in the following aspects: Frequent flood would result in loss of living and production assets. The replacement of such assets will increase the family financial burden and keep them from improving their current poverty status. The flood would also cause reduction of output and loss of revenues for affected enterprises due to interruption of their normal production for emergency activities, and damage of their production equipments, which would lead to lower income among affected employees. The farmland within the protected areas, particularly relatively high yield vegetable land is frequently flooded, which will damage the crops, wash away top soil, and damage related facilities, which will result in lower income among local farmers and keep them in poverty conditions. For the vulnerable people living in the dilapidated houses, the flood will pose continuous life threat and increase their anxiety, which need to give more attention.

3.2 PROJECT BENEFITS FOR DIFFERENT STAKEHOLDERS

The proposed Sangzhi Flood Control Subproject will benefit all people in PPA, which include urban and rural, male and female residents, industrial managers, staff of the enterprises and institutions, local government officials and small shop owners. Majority of project beneficiaries are ethnic minorities. The Project will produce social benefits for them in the flood-prone area by reducing the risks to personal safety, livelihood, and assets. For rural and urban residents, reducing of flood damages to their crop, houses and assets mean more savings and higher income in future. Community interviews strongly suggested that the residents forgo investment in higher income activities such as greenhouse, livestock production and house improvements for fear of the potential loss during floods. Frequent house reconstruction after flood drains their capacity to accumulate financial resources. Removal of the flood danger from the protected areas will create a safer environment for both urban and rural residents so that they could sleep better during the wet season, and worry less about the safety of their family members and security of their limited physical assets.

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The participation in the Project construction by unskilled labours will directly increase their cash income, which could help them build their savings and improve the poverty conditions. The poorer residents will benefit through increased security provided by the Project which will mitigate the floods and assist the local government financial capacity. Confidence that public infrastructure investment will be more secure will support more investment in these locations. The improved business environment will encourage urban development, during which both local communities and urban residents will significantly benefit.

For business and enterprises, the improved flood protection mean the reduction of potential damages and interruptions caused by floods, which will result in higher profits for the companies, more wages for the employees and more tax revenues for local governments. For many state owned enterprises with large land areas, better protection will have more chance to attract outside investment, so jobs can become more secure and the business can expand, thus leading to more employment.

In addition to economic benefit, group discussion among stakeholders also identified a range of non-economic benefits by the Project, which include: (1) a better urban environment along the river front with improved drainage and removed garbage; (2) improved transport and access for local residents; (3) created a safer environment for local residents, particularly for children and elderly; and (4) enhance non-farm employment capacity through participating in Project construction, and job skill trainings for affected communities. Even for those people outside the PPA, reduction of flood impacts in the county town mean less interruption of market activities, and less interruption of government programs and services, which are critical for most rural poor.

The project itself is an ethnic minority people’s development project because it will direct provide flood protection to the political, economic and commercial center of Sangzhi County. According to the social and poverty assessment, there are 17,978 households and 34,926 persons, who will be direct beneficiaries of the proposed project. Among them, 28,659 persons or 82.1% are ethnic minorities, including 18,277 of them as Tujia, 7,893 of them as Bai and 2,169 of them as Miao nationalities.

During the survey, small group discussions were held among men and women in the selected communities. Based on their own experience, different group individuals identified various benefits to be brought to the minorities, which is presented in Table 3-２.

TABLE 3-２: POSITIVE IMPACTS IDENTIFIED BY DIFFERENT GROUPS OF BENEFICIARIES

Groups interviewed Positive Impacts to be Brought by the Subproject Rural area • Prevent soil erosion Male group • Protect lives and houses from flood • Bring employment and other business opportunities • Improve environment • Promote local economy Rural area • Lives being secured; No interruption on the kid’s schooling Female group • Enjoying the life by keeping flood way Urban area • Lives and assets could be protected

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Groups interviewed Positive Impacts to be Brought by the Subproject Male group • Businesses could be run without fear • Better environment and better sanitation Urban area • House and other assets could be protected Female group • No need to worry about moving belongs during rainy seasons • Could sleep well during rainy season Small business persons • Reducing the threats on lives by floods • Business could remain open all the time. • Reduce economic loss caused by the flood • Have a better environment for business. Factory (Sangzhi • Reduce flood threat Construction and • Improved infrastructure benefit enterprise development Installation Company) • Provide business opportunity to participate in project • Improve soil conservation and reduce pollution in the rivers Sources: Field visit and small group discussions.

Based on discussions with various stakeholders, it seems that the following short term and long term economic impacts could be expected from the Project:

Short term economic and development impact: Employment during construction. Some 16,00012 person-months of unskilled labor over 4 years will be employed with CNY 12.2 million of wages, and at least 80% of labors and CNY 9.7 million of wages will come from minority people. Each unskilled labor could earn at least CNY 3,750 during the construction, which is more than three times of that their current annual income. Commercial activities during the construction. These will include groceries, provision of food and accommodation services. Provision of construction materials. Contractors will only locally purchase the bulky and yet cheaper materials of stone and earth for civil works. This could enable some minority people, where the expressway crosses, to engage in excavation and transportation of stone sand earth.

Mid-term and long-term (after construction period) potential indirect economic impacts include: Increased agricultural production and productivity through reducing flood damages and increasing farming input, such as building greenhouse vegetable, and making crop structure adjustment, as well as income skill training under both minority development and resettlement programs Increased non-farm economic activities by providing safe business environment, non-farm skill training, and making capital available through land compensation and employment opportunities during construction Flood work-related employment. The maintenance of completed dikes and facilities will employ some people to do regular maintenance, landscaping, cleaning, etc. Increased employment through increasing real estate development and commercial activities along the river front.

These potential impacts are expected to benefit men and women, urban and rural, Han

12 Estimation by PPTA consultants is based on required person day unskilled labor from project feasibility study.

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and minorities in PPA. Social and Poverty Analysis showed that women were conscious of the safety of family members. Also, women in the immediate impact area (area along the construction site) will receive more benefits from providing catering services and other social services to the large number of workers during construction of dikes. The long-term trends for women are very favorable, such as improved female education, enhanced cultivation techniques, greater emphasis on livestock raising in poor areas, and increasing urban migration.

3.3 POTENTIAL NEGATIVE IMPACTS OF RESETTLEMENT13

During the small group discussions held in the selected communities, different groups of individuals also identified a range of potential negative impacts to be brought by the proposed subproject based on their own interests.

Among them, the land acquisition, demolition of houses and relocation of population were considered the major negative impacts by the project. According to the detailed impact survey, the construction of new dikes will acquire a total of 4.5 ha land areas. About 78% are farmland, and most of them are vegetable land. The remaining land areas are river bed, urban housing land, and unutilized urban land. Approximately 8.5 ha of land will be occupied temporarily during construction, among which, 10% are farmland. The permanent land acquisition will affect 20 households and 86 individuals from 7 villages and 17 village groups in Liyuan Town. In average, each affected person would lose about 0.61 mu farmland. The temporary land occupation will involve 12 mu of farmland and affect 6 households and 30 individuals.

Along with land acquisition, a total of 26,460 square meters of buildings would be demolished, including 16,860 m2 of urban residential structures and 9,600 m2 of non- residential structures. About 92% of structures are brick concrete structure. The demolition will cause relocation of 43 households and 201 individuals, and affect 8 small shops and 8 enterprises with 193 employees.

Although the amount of land acquisition and demolition is not significant, for affected individuals and communities, the impact could be quite significant. For example, the land acquisition will result in a reduction of 20% of per capita land holding among 7 villages from 0.74 mu per person to 0.59 mu per person. On the other hand, most affected villagers are no longer relying on agriculture as their main source of income. According to the sample household survey, only 26% of income came from planting. Therefore, through farmland readjustment, investing in animal husbandry and greenhouse vegetable, as well as other income generation activities, each affected person will be able to restore their income to their previous levels. Following the ADB requirements, draft resettlement plan has been prepared by PMO with assistance from the design institute. The proposed compensation standards are in line

13 This section is based on draft Resettlement Plan for Sangzhi Subproject - Supplementary Appendix XX.

SOGREAH – July 2005 PAGE 35 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (EMDP): ETHNIC MINORITY DEVELOPMENT PLAN (SANGZHI) with the PRC Land Administration Law (1998) and the ADB’s Policy on Involuntary Resettlement, particularly the Hunan Provincial Implementation Decree adopted in 2000, which stipulates the regulations for land compensation, resettlement subsidies, young crop compensation, house compensation and other measures to carry out resettlement. According to the policy, the total compensation (land compensation, resettlement subsidy and young crop) will be set at Y13,500 per mu for irrigated farmland; Y9,450 per mu for dry land, Y13,500 per mu for pond, Y10,989 per mu for housing plot and Y1,025 for waste land. For structures to be demolished, replacement value will be provided to the affected households based on compensation rates adopted in the local government, which range from CNY 340 – CNY 420 per square meter for brick-concrete structure, CNY 270 – 330 per square meter for brick-wood structure, and CNY 80 per square meter for simple structure.

In terms of rehabilitation for house demolition, for affected urbanl households, they will be provided with two options. One is to provide with replacement housing in nearby location completed with infrastructure and modern facilities; the other is to provide with compensation. There will be no reduction in house compensation for depreciation, and people will be allowed to salvage materials from their old houses. For land loss farmers, the economic rehabilitation will be carried out with a combination of land readjustment, developing greenhouse vegetable and animal husbandry. Based on extensive consultation, detailed economic rehabilitation plans have been developed for all affected villages, which are included in the Resettlement Plan. The total cost of resettlement is estimated at CNY15.3 million.

The HPWR and Sangzhi PMO will ensure that the resettlement entitlements are provided to the people affected prior to the ground leveling and demolition commencement. Land compensation and resettlement subsidy will be paid to the affected village collectives. Housing compensation and compensation for young crops and other assets will be provided directly to people losing those assets. Compensation for infrastructure such as electrical and communication fixtures will be paid to the concerned government departments for restoration.

However, since the draft RP has not yet been disclosed to the local communities and affected people, most people interviewed did not have clear idea about the potential land acquisition and resettlement impact to be brought by the Project. They express some concerns with regard to compensation policies and potential negative impacts. It seems that during next stage of resettlement planning more meaningful participation should be organized with affected communities and individuals, and more disclosure should be carried out in order to improve basic understanding of the resettlement preparation for the Project and address concerns raised by the project affected people.

Apart from land acquisition and resettlement, the project is not expected to have adverse impacts on minorities as a separate group. Additional measures are outlined in the next section to minimize any adverse affects resulting from development and economic growth and to enhance project benefits to minority people.

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3.4 EXPECTATIONS AND CONCERNS

All the groups interviewed expressed their earnest desire to carry out the flood control project as soon as possible, and to build a wide embankment so to play multiple functions of the proposed project. The main comments and suggestions from the stakeholders include: Building a wider and higher embankment open to traffic; Commence the work as soon as possible; For potential resettlement impacts, providing information early and adequate compensation as well as employment opportunities; Providing employment opportunities during construction; Providing credit for small business.

The villagers and urban community residents were provided development needs for their selection and ranking. Each group was requested to rank the first 5 priorities. Out of four groups, all marked the proposed project as the first priority followed with more income generation opportunities, better local road within the community, better access to credit, better education conditions and lowering education fee, and better health care service. (Table 3-3)

TABLE 3-３: PRIORITY NEEDS PERCEIVED BY FROM THE COMMUNITY

Community Gender 1 2 3 4 5 Wenminglu M Proposed Other measure of More non-farm Better toilet Improve sewer Project flood control jobs facilities system F Proposed More income Better access Better education Provide non-farm Project generation credit and lower cost sill training opportunities Wuliqiao M Proposed Better road Better education Better public Better health care Project conditions and lower cost security service F Proposed More non-farm Better public Better access to Better health care Project employment security credit service opportunities Source: Filed survey result.

3.5 POVERTY REDUCTION MEASURES

As a national poverty county, the main poverty issue for Sangzhi County is rural poverty. According to official account, there are 115,000 persons in rural area under the poverty line, accounting for 30.4% of rural population in the county. Among them, 26,000 persons or 22.6% are extremely poor with per capita income below CNY 637. Most of the poverty people are located mountainous regions with limited farmland, harsh natural conditions, and poor accessibility. Some of the rural poverty is caused by frequent flooding since part of Sangzhi is located in one of heavy rainstorm areas in Hunan Province. Given the high proportion of minorities in the county, majority of the rural poor are minorities. However, since the project protected area covers mainly urban area, the majority of

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poverty persons in PPA are urban poor living below the minimum living safety line. There are only 380 rural poor in PPA, accounting for 0.3 percent of total rural poor persons in Sangzhi County. The main cause of rural poor in PPA is limited of farmland due to urban expansion, frequent flood and lack of non-farm employment opportunities. Most these rural poor in PPA are vulnerable people who lack of labor or disabled. For the Sangzhi County, since rural poverty is relatively significant with 30.4 percent and since it is one of 20 national key poverty counties, there is on-going poverty alleviation effort funded by both central and provincial governments. According to officials from Sangzhi Poverty Alleviation Office, as a national poverty county, there were about CNY28 million poverty alleviation funds allocated to Sangzhi County each year for poverty reduction efforts, with CNY 8.5 million as poverty reduction grant, CNY 10 million as work for food program, and CNY 10 million from state bond. About 80 percent of these funds were used for improving basic infrastructure, promoting economic development, and conducting technical training among key poverty villages. The funded activities include village roads, drinking water, school building repairs, irrigation facilities, as well as introduction of various cash crops and technical trainings on planting, animal husbandry, and non-farm skills. Each key poverty village is provided with 2 to 3 years of concentrated financial support, which s been used to implement village poverty alleviation plan developed by villagers. Because of such efforts, the poverty population has been reduced steadily in the past two decades. The extremely poor population – people who lack basic food and clothing was reduced by 252,000 persons between 1986 and 2004. The share of extreme poor people was reduced from 58 percent in 1993 to only 7.4 percent in 2004. Table 3-４ indicates such sharp decline during this period.

TABLE 3-４: CHANGE OF POVERTY INCIDENTS IN SANGZHI BETWEEN 1986 AND 2004

Year Extreme Poor Percent of Total Rural Rural Poverty Percent of Total Rural Population Population 1986 278,000 n.a. 1993 215,400 58.0% n.a. 2003 32,000 8.5% 115,000 26.4% 2004 26,000 7.4% 105,000 22.4% Source: Filed survey result. For urban poor in Sangzhi, including those urban poor in project protected area (PPA), the main approach of poverty reduction is to deliver Minimum Living Allowance (MLA) so that their average monthly income could reach urban minimum living safety line. The process of identifying those who are under the poverty line is increasing transparent. It begins with application by the poor people, reviewed by local communities and disclosed in public three times for comment before finally adopted by local civil affairs bureau. According to estimate by Sangzhi Civil Affairs Bureau, for 2004, there are 8,794 persons in Sangzhi County are provided with living allowance subsidy, with a total of Y6.12 million, averaging Y696 per person per year.

Among the urban poor, losing regular jobs from state owned enterprises is one main

SOGREAH – July 2005 PAGE 38 ASIAN DEVELOPMENT BANK - T.A. NO. 4324-PRC HUNAN FLOOD MANAGEMENT PROJECT R4 (EMDP): ETHNIC MINORITY DEVELOPMENT PLAN (SANGZHI) factor. According to statistics provided by Sangzhi Civil Affairs Bureau, 70 percent of those receiving MLA came from various state owned and collectively owned enterprises. In two large state owned coal mines alone, there are 589 households and 1,966 persons who are supported by MLG. In order to address such problem, measures like providing re-employment trainings and introduction of jobs were also provided by local labor and social security bureau. As a result, active employment policy was adopted by local government to develop various public service positions, such as road cleaning, security guards, traffic assistants, and so on. For those positions, more attentions are given to the aged unemployed workers with less education or skills. Other measures such as reducing education fee for their school age children are also adopted by relevant district agencies and implemented by officials from town government.

The strength of poverty alleviation effort in China lies in its effective administrative structure and dedicated staff. It was reflected during the process of flood protection and disaster relief activities. When flood was coming, staffs from town and residential committee (village) were responsible to help those vulnerable peoples move to safer places, collect and distribute relief goods, and assist them throughout rehabilitation efforts.

The construction of the proposed project will (1) effectively enhance the capacity of flood control by the local communities, and reduce the loss from the flood, so to promote the production and income of the poor; (2) provide employment opportunity for those with no specific skills, especially the poor during the construction; and (3) promote the development of the urban areas, increase opportunity of employment so to reduce the poverty population.

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4 ACTION PLAN

4.1 SPECIFIC MEASURES/ACTIVITIES

Table 4-１, Table 4-２ and Table 4 -３ present the proposed measures, targets, budget and implementation timing. The proposed measures consist of the following three categories:

Measures to avoid or mitigate adverse impacts Measures to enhance positive impacts Measures to ensure project benefits accrue to affected minority populations in a preferential or in an equitable manner

The scale and scope of the proposed measures are subject to modification from time to time depending on the finalization of project design and various other factors.

4.2 MITIGATION MEASURES

Construction-related Disturbances. The proposed flood control works and their related facilities will directly affect 9 minority villages in Liyuan Town. Some disturbances might occur during project implementation. The total minority population affected by construction noises and other hazards from these residential committees or villages will be about 28,659. The environmental impact assessment considers and addresses some, if not all of these potential health hazards identified. For instance, nighttime construction is prohibited thereby mitigating the issue of excessive noise for people living close to the expressway construction sites. The construction of crossings will address the concerns of road safety. The restoration of damaged irrigation and drainage systems will preserve surface water sources of local people from pollution caused by construction.

HIV/AIDS and STIs Awareness and Prevention. Although Sangzhi County is not a high risk area for HIV/AIDS, in order to ensure that Sangzhi will continue free of HIV/AIDS, county CDCs (Centre for Disease Control), in accordance with the PRC Law on Prevention and Treatment of Epidemic Disease, will take measures to prevent the spread of HIV/AIDS and other STIs. The project PMO and the contractors will support CDCs to take prevention measures for workers and local communities during construction and to transport operators and truck drivers during operation of project facilities such as establishment of health clinic at construction camps, HIV/AIDS and STIs prevention

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posters, HIV/AIDS and STIs education programs, and implementation of the international anti-AIDS programs.

Gender Equality. In order to ensure the fair distribution of the project benefit to the women, women’s participation in terms of decision making will be secured in accordance with government laws and regulations during the implementation of Ethnic Minority Action Plan. The Women Federation, which has a mandate to advocate women and children rights, and disseminate information of livelihoods improvement through newsletter and regular group meeting, will extend their activities in the project affected area as a part of their regular activities.

Resettlement. Local governments will support the development of social infrastructure and local markets, and have incorporated those into local development plans. For new house construction, local customs, agricultural requirements and future development needs will be taken into consideration. House construction will be carried out according to the wishes of households so that the traditional housing styles will be preserved. A special fund will be used to provide necessary help for the vulnerable people when necessary. Vulnerable people include the elderly, disabled, household headed by women, extremely poor households, and minority people. In addition, for the people seriously affected by loss of farmland due to the Project, besides land compensation and rehabilitation measures, they will be offered training in agricultural techniques and non- farm skills according to their different situations. The affected women (minority women in particular) will be given priority for such training so that they could enhance their skill and have better chance to benefit from participating in non-farm activities. The resettlement organizations at all levels include staffs that are members of minority nationalities. Ethnic minorities and their representatives will be provided opportunities to participate in resettlement planning, and such participation will be carried out through the whole process of resettlement implementation.

TABLE 4-１: MITIGATION ACTIONS

Proposed Targets/Indicators Beneficiaries Budget (CNY) Timing Measures Protection of Implementation of EMP, including All 34,926 persons in PPA, Total budget of CNY 2.92 2006- minority prohibiting nighttime construction, including over 28,659 minority million to be included in 2010 communities from restoring damaged irrigation and people from 9 residential EMP for the proposed construction drainage systems, and mitigating committees (villages). subproject. disturbances: other environment impacts Control of Health clinics in construction Minority residents in PPA Included in the project 2006- transmissible camps especially along the dike 2010 diseases HIV/AIDS and STIs prevention alignment. Compulsory requirement posters to contractors to take HIV/AIDS and STIs education Over 2,000 construction action under the programs workers supervision of county Implementation of the CDCs (Center for international anti-AID programs Disease Control) Zero case of HIV/AIDS in the

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Proposed Targets/Indicators Beneficiaries Budget (CNY) Timing Measures project areas during the construction period

Encourage women Number of meetings Over 17,360 women from 9 Included in Government 2006- to participate in Number of newsletters residential committees program 2010 meetings and (villages). decisions Special support to Special assistance to vulnerable In 8 affected villages, the Included in Resettlement 2006- resettlement people, including CNY 3,000 per vulnerable people account for Plan of 1% total budget 2007 affected people person for house reconstruction, 4.9%. For total affected 60 for vulnerable support, and CNY 600 per person for households and 472 persons, averaging CNY 6,500 per transfer assistance. there are at least 23 vulnerable person. Options of rehabilitation for people to be affected by Employment skill training relocated households and respect resettlement. is covered by both to specific tradition Resettlement Plan and Employment skill training by the existing Government minority trainers programs

4.3 ENHANCEMENT MEASURES

Micro-Credit Program. Under the coordination of county poverty reduction offices, Sangzhi Women Federation will provide micro-credit service to some 1,520 rural minority women in the 38 townships of Sangzhi County during the project implementation period. Most of them will be minority women. The average size of the loan is CNY 1000. The loan would be used for the income generating activities. Repayment period ranges from 0.5 to 4 years with annual interest rate of 5-6%. The poverty reduction offices will cover 50% of the credit’s interest charges.

Tourism Development. County governments and their tourism agencies will take the following promotion actions for tourism development: Exhibition of Tujia, Bai and Miao cultures and establishing tourism infrastructures, including building a ethnic minority plaza near current stadium along the river. Preparation of tourism brochures and posters to distribute and display in the rest and parking areas and service stations of the expressway. They are also to be distributed in various tourism agents in cities. Introduction of the tourism resources with access map on various websites.

Technical Advice and Training. As components of the resettlement plan for income recovery, county technical sectors (i.e., agricultural and forestry bureaus, labor and social security bureau) will provide special technical advices and training to the project affected farmers (men and women) on cash cropping, livestock management, and non-farm skills, as well as job introduction for migrant labors. Skill training will also be provided to enable minority people take employment opportunities from construction of flood control projects.

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Tax Incentives for Minority Families. To encourage local minority people to engage in secondary and tertiary activities, the local government will provide tax incentives and special policies, such as fixed base, increasing subsidy, and special assistance, waive agricultural tax, and provide priority for the minority households to get small loans.

TABLE 4-２: ENHANCEMENT MEASURES

Proposed Measures Targets/Indicators Beneficiaries Budget Source Timing (CNY) Micro credit (mostly to Minority women in Sangzhi 1,520 minority 400,000 Sangzhi 2006- rural women) County women Women 2010 Federation Tourism promotion Building ethnic minority plaza All minorities in the 4 – 5 County 2006 county town, million governments onward particularly small s businesses Advice on agricultural affected minority people in 8 760 minority Covered by County 2006 techniques and no- project villages population local governments onwards farm skills programs

Tax incentives Tax benefits for new small Over 28,659 County 2006 business, tax exemption for minority people Government onwards agricultural activities from 9 residential committees (villages).

4.4 PROJECT BENEFIT MEASURES

Employment Measures. It is suggested to take the employment of local minority people as unskilled labors for the construction of the expressway as a potential contract item between Sangzhi PMO and contractors. The contract will specify that contractors should employ at minimum, 75% of local unskilled labors. Full wages will be paid to local people employed for the construction of the flood control components. On-the-job training will be provided for workers and special attention will be paid to the illiterate workers by PMO and contractors.

TABLE 4 -３: PROJECT BENEFIT MEASURES

Proposed Actions Targets/Indicators Beneficiaries Budget (‘000 CNY) Timing Over 16,000 person-months Employment of minorities as unskilled labor, 80% are to be 2,500 minority Included in civil unskilled labors for construction awarded to minority population labors (4 months 2006-2009 works contracts of the flood related works Contractors use 75% of local each in average) labors minimum Employment of minorities at 30 positions for hire, of which Included in project 2010 maintenance and other 20 minority workers 70% would be minorities operating budget onwards associated activities

4.4.1 BUDGET AND FINANCING SOURCES

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All measures are going to be financed by the local government or under the project. The budget for each measure is shown in Tables 5-1, 5-2, and 5-3. Since project design is not finalized yet, budget for the various actions are subject to modifications in the future.

4.4.2 IMPLEMENTATION ARRANGEMENT

Sangzhi PMO, through its implementing agency and the contractors, will play a leading role in implementing most of the construction-related measures previously presented. Specifically, Sangzhi PMO will be directly involved in construction of new dikes, improvement of existing ones, and installation of related facilities through finance provision and construction supervision.

County governments will take the leading role in implementing the supportive measures such as technical training, tourism promotion and micro-credit. These actions, routine work of local governments, will undoubtedly be implemented regardless the project. Several government agencies will be involved including minority affairs bureau, land administration bureau, poverty reduction office, forestry bureau, agricultural bureau, women’s federation (government organized NGO), township governments, etc.

4.4.3 MONITORING AND EVALUATION

Monitoring and evaluation (M&E) of the EMDP is required to ensure the plan is implemented properly and meets the objectives specified. The final M&E plan will be formulated shortly before project implementation. ADB will assist Sangzhi PMO in formulating the M&E plan. Objectives of the M&E plan include:

Data and information to identify effects and project impact including qualitative information to describe social changes on minority people and their communities; Analyze and document the results for future planning of roads construction and poverty reduction interventions; Initiate participatory approaches (PA) needed to plan and implement complementary activities; and Focus on key-actions and processes learned from the project for replication in other areas.

The collection of data should be kept to a minimum and concentrate on data that is required for key indicators. The following list provides some broad evaluation indicators that are of greatest importance. Specific indicators related to the implementation of the EMDP are listed in previous Tables. Data collected shall be disaggregated by sex and by ethnic group whenever possible:

Production output value in target villages income per capita poverty incidence

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ownership of assets in selected villages. new commercial activity along the new river front changes in quality of water and health with reasons for selected villages new houses built/under construction in selected townships frequency of technical and socio-economic advice and training to selected villages on local roads school attendance classified by grade, gender and ethnicity and drop out rate for selected townships

Not all the above questions will apply in every case. Some relate only to villages affected by the project. Others are only appropriate once the flood control project has been constructed. Questions in the ‘before construction survey’ should instead probe into the anticipated benefits from the schemes and other development priorities. Surveys would be carried out in villages located in close proximity to the project.

Sangzhi PMO understands that ADB will play a leading role in formulating the M&E plan. Therefore, ADB will provide guidance to prepare a feasible M&E plan before project implementation. Sangzhi PMO will coordinate its implementing agency and local government to assist the consultant team to carry out the M&E plan. The budget for monitoring and evaluation activities will be worked out once detail M&E plan is completed, which will be used for hiring the domestic PPMS specialist and domestic EMDP monitoring agency.

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