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World Bank Document RP1360 v2 World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project Public Disclosure Authorized Resettlement Action Plan of the Ningbo Municipal Solid Waste Minimization and Recycling Project Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized November 2012 Letter of Commitment The Ningbo Municipal Government (NMG) has applied for a loan from the World Bank for the Project through the Ministry of Finance of the People’s Republic of China (the “PRC”). Therefore, the Project must be implemented in accordance with the Bank’s social safeguard policies. This resettlement action plan (RAP) represents a key requirement of the Bank and becomes a basis of the land acquisition, house demolition and resettlement work of the Project. This RAP complies with the applicable laws of the PRC and local regulations. In order to complete resettlement more effectively, this RAP includes some additional measures, and implementation and monitoring arrangements. NMG hereby acknowledges the contents of this RAP, and warrants that the budgetary funds under this RAP will be included in the general budget of the Project and made available on time. NMG has discussed the first draft of this RAP with the administrative departments concerned and obtained their consensus. The local governments in the project area will implement the Project and the related resettlement work within their jurisdictions. NMG: ___________ (Signature) ___________ (Date) 2 Executive Summary 1. Overview of the Project The World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project (hereinafter, the “Project”) consists of four components: MSW Separation, Collection and Sorting, Kitchen Waste Treatment Facility Construction, Implementation Capacity Building, and Implementation Organization and Project Management. The Project will break ground in June 2013 and be completed in October 2015. Land acquisition (LA), house demolition (HD), compensation and resettlement will begin in December 2012 and be completed in December 2013. The general resettlement budget of the Project is 140,774,800 yuan, accounting for 10.56% of the gross investment of the Project. 2. Resettlement impacts The main resettlement impacts of the Project are permanent and temporary land occupation. 170.6 mu of land will be acquired permanently and 42 mu of land occupied temporarily for the Project. Five communities/villages in five towns, three districts of Ningbo Municipality will be affected by resettlement, in which LA and HD involve four communities/villages respectively. 121 households with 683 persons will be affected in total, in which 72 persons, 19 land contracting households with 54 persons and five enterprises with 370 persons will be affected by temporary land occupation, and 67 households with 187 persons affected directly by LA and HD. 3. Policy framework and entitlements In order to avoid or reduce negative impacts of LA, adequate consultation was conducted on the potential site of the Project, the affected village groups and persons at the feasibility study stage. An optimum option was selected through comparison. This RAP is based on the Land Administration Law of the PRC (2004), the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the applicable policies of Zhejiang Province, and the Bank’s policy on involuntary resettlement (OP4.12) and relevant social safeguard policies. The resettlement objectives and framework of the Project have been developed in consultation with the local governments and affected persons (APs) based on the above policies. The objectives of resettlement include: a) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs; b) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs; c) providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of 3 project implementation, whichever is higher. The resettlement policy framework of the Project covers the following: a) The resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) informed about their options and rights pertaining to resettlement; (ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and (iii) provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project; b) If the impacts include physical relocation, the resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are: (iv) provided assistance (such as moving allowances) during relocation; and (v) provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site; (c) Where necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also include measures to ensure that displaced persons are: (vi) offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; and (vii) provided with development assistance in addition to compensation measures described in paragraph 6(a) (iii), such as land preparation, credit facilities, training, or job opportunities. 4. Compensation and restoration Compensation for permanent LA includes location-based composite land price for LA (land compensation fees, resettlement subsidies), and compensation fees for ground attachments and young crops. Since different districts of Ningbo Municipality vary greatly in socioeconomic profile, compensation rates for LA vary greatly from district to district. The location-based composite land price of Jiangdong District is 96,500 yuan/mu (land compensation fees 43,600 yuan/mu and resettlement subsidy 52,900 yuan/mu) and that of Jiangbei District 55,000 yuan/mu, the compensation rate in Yinzhou District is 65,000 yuan/mu, and the compensation rate for young crops is 1,000 yuan/mu. Temporary land occupation will be caused by the construction of the sewer line mainly, and about 42 of land will be occupied temporarily. The temporarily occupied land will be restored immediately after construction. Through consultation with the affected village, the temporarily occupied collective land will be compensated for at 1,200 yuan/mu. According to the construction design, the occupation period will be one month. The compensation rates for demolition of rural residential houses vary from district to district. The compensation rates of Jiangdong District are 6,000 yuan/m2 for masonry concrete structure, 5,500 yuan/m2 for masonry timber structure and 5,000 yuan/m2 for earth timber structure, moving subsidy 700 yuan/household, and transition subsidy 10 yuan/m2 of the building area of the demolished house. The compensation rates of Jiangbei District are 5,500 yuan/m2 for masonry concrete structure, 5,000 yuan/m2 for masonry timber structure and 4,000 yuan/m2 for earth timber structure, moving subsidy 700 yuan/household, and transition subsidy 10 yuan/m2 of the building area of the demolished house. 4 The Project also involves the demolition of unlicensed rural industrial buildings, which will be compensated for at 1,200 yuan/m2 through consultation with its proprietor Sangjia Community collective, Fuming Sub-district, Jiangdong District, which may rebuild industrial buildings lawfully on its reserved land for rent. All residents in Sangjia Community and Xishao Village affected by LA are of nonagricultural status in household registration. Although the villagers of Xishao, Xuanpei and Dingqiao Villages are of agricultural status in household registration, their per capita net income is over 16,000 yuan. Since agriculture is not the major income source for the villagers in the affected villages, LA will affect the APs’ income slightly. The per capita income loss of Sangjia Community is the highest at 738.06 yuan, with an average income loss rate of 3.32%, the average income loss rate of Xuanpei Village is 3.12%, and the average income loss rates of the other two affected villages are less than 3%. The income restoration measures for the APs include: (1) cash compensation; (2) endowment insurance for land-expropriated farmers (LEFs); (3) cultivating cash crops of higher economic value through crop restructuring; (4) skills training, where APs are trained to deal with tertiary industries, get employed or start up a business; and (5) resettlement on reserved collective land. Depending on the socioeconomic profile of each affected village, land compensation fees and resettlement subsidies may be used in different ways as determined at the village congress. Land compensation fees and resettlement subsidies will be paid directly to the village or
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