Ethnic Minority Development Plan

November 2011

People’s Republic of China: Hunan Flood Management Sector Project (Jishou City Subproject)

Prepared by the Hunan Provincial Government for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 1 November 2011) Currency unit – Yuan (CNY) CNY1.00 = $0.1572 $1.00 = CNY6.3595

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.

2

Jishou Urban Flood Control Subproject

ETHNIC MINORITY DEVELOPMENT PLAN

Jishou City PMO

3 Table of Contents

I.INTRODUCTION…………………………………………………………………………………………………………3

II.BACKGROUND…………………………………………………………………………………………………………4

A. PROJECT DESCRIPTION………………………………………………………………………………………………4 B. ETHNIC MINORITIES IN HUNAN……………………………………………………………………………………….ERROR! BOOKMARK NOT DEFINED. C. LEGAL FRAMEWORK………………………………………………………………………………………………….6

III. ETHNIC MINORITIES IN THE PROJECT AREA………………………………………………………………….ERROR! BOOKMARK NOT DEFINED.

A. METHODOLOGY……………………………………………………………………………………………………….ERR OR! BOOKMARK NOT DEFINED. B. MINORITY POPULATION IN FOUR RIVER BASINS…………………………………………………………………….ERROR! BOOKMARK NOT DEFINED. C. ETHNIC MINORITIES IN PROJECT COUNTIES……………………………………………………………………….9 D. ETHINIC MINORITIES IN JISHOU CITY…………………………………………………………………………...... 12 E. ETHNIC MINORITIES IN PROJECT PROTECTED AREAS (PPA) …………………………………………………….13 F. ETHNIC GROUPS AND THEIR DISTRIBUTION………………………………………………………………………..16 G. SOCIOECONOMIC CHARACTERISTICS OF MINORITY COMMUNITIES………………………………………………17 H. ON GOING MINORITY DEVELOPMENT PROGRAMS………………………………………………………………...20

IV. PROJECT IMPACTS ON MINORITIES…………………………………………………………………………...22

A. PAST FLOOD IMPACT……………………………………………………………………………………………...... 22 B. PROJECT BENEFITS FOR DIFFERENT BENEFICIARIES……………………………………………………………..23 C. POTENTIAL NEGATIVE IMPACTS OF RESETTLEMENT………………………………………………………………26 D. EXPECTATIONS AND CONCERNS……………………………………………………………………………………30 E. POVERTY REDUCTION MEASUREMENT…………………………………………………………………………….37

V. ACTION PLAN………………………………………………………………………………………………………..39

A. SPECIFIC MEASURES/ ACTIVITIES………………………………………………………………………………….39 B. BUDGET AND FINANCING SOURCES………………………………………………………………………………..42

4 C. IMPLEMENTATION ARRANGEMENT………………………………………………………………………………….42 D. MONITORING AND EVALUATION (M & E)…………………………………………………………………………...42

5 I. 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 individuals in the project area of the Jishou Flood Control Subproject, which is part of Hunan Provincial Flood Management Project in Hunan Province, People‟s Republic of China (PRC). The EMDP for Jishou 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 35 subprojects will be the context for such assessment. Based on review of social and poverty conditions of ethnic minorities in both Jishou City 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, Miao and other nationalities in the project area, which account for about 28.9%, 23.3% and 0.8% of the total ethnic minority population in Jishou City.

6 II. BACKGROUND

A. Project Description

The proposed Jishou Flood Control Subproject is one of the thirty-six subprojects under Hunan Flood Management Project. This subproject is located in the urban area of Jishou City, western Hunan Province. Jishou urban area is located in the southern part of north Wuling Mountain, bordering with Luxi County in the southeast, Fenghuang and Huayuan Counties in the west, Baojing and Guzhang Counties in the north. The width from east to west is 55.9km and the length from south to north, 37.3km. And the total land area of the whole city is 1062km2. Water systems flowing through Jishou urban area include Donghe River and its tributary, Wanrongjiang River. As the Class I tributary of Yuanjiang River, Donghe River (the upstream section of Wushui River) originates from Laoren (old man) Mountain of Huayuan County, flows by Hepai, Taixingzhai, Aizhai, Jishou urban area, and Hexi, and then converges into Yuanjiang River at Luxi river mouth of Luxi County, with a drainage area of 3574km2 and river length of 145km. The length of the river section in Jishou old urban area is 10.04km. In this section, Wenxihe River joins into it, flowing through the old urban area for about 10.04km and then converges into Donghe River (Wushui) at Xiangyangba of Wenxi Bridge. As the Class I tributary of Donghe River (Wushui), Wanrongjiang River originates from Changguping, Fenghuang County, flows through Jixin, Sangong Bridge, Qianzhou and Zhongyanceng, and then converges into Donghe River (Wushui) with a drainage area of 3.05km and river length of 59km. The length of river section in Jishou new urban area --- Qianzhou is 3.05km. In this section, Minkangchong stream joins into it, flowing through the new urban area (Qianzhou section) for about 2.85km and then converges into Wanrongjiang River at Xiaoxi Bridge of Jishou new urban area --- Qianzhou. The new and old urban areas of Jishou City are low in topography and are under natural condition without protection, thus its flood resistance ability is weak. According to the topography, water system and urban development plan, the protection zone is divided into 5 independent protection circles, namely Donghe River left bank and Wenxihe River right bank protection circle, Wenxihe River left bank and Donghe River left bank protection circle, Donghe River right bank protection circle, Minkangchong stream left and right bank protection circle. The protection zone of the flood control project only covers part of the existing Jishou urban area, with an area of 18km2. The main objective of the proposed Jishou subproject is to 1) protect the urban areas of Jishou City from flood threats, and 2) to enhance watershed management in Yuanjiang River Basins, which is an important part of Hunan‟s integrated Flood Management System. The subproject will include following components:

 To newly build flood control dikes in the 5 protection circles with a length of 22.618km, of which 5.022km for Donghe River left bank and Wenxi River right bank protection circle, 5.361km for Wenxi River left bank and Donghe River left bank protection circle, 6.073km for Donghe River right bank protection circle, 3.027km for Minkangchong River left bank protection circle, and 3.135km for Minkangchong River right bank protection circle.

 To reconstruct 3 stone masonry dams into rubber dams, namely Xiangyang dam which is 66m long and 4m high, Mogoutan dam, which is 57m long and 5m high, and Tianxianqiao dam which

7 is 31m long and 5m high.

 To build river course bank revetment with a length of 16.148km, of which 4.925km for the bank revetment on both banks of Donghe River, 0.829km for Wenxi River right bank revetment, and 10.394km for the bank revetment on both banks of Wanrongjiang river.

 River course dredging with a length of 12.13km, among which 7.11km from Prefecture Party School to Original Jishou University; 0.92km from the fruit market on Wenxihe River to the water outlet of Wenxihe River; and 4.1km from Tianxi‟an to the conjunction of Wanrongjiang River.

 To newly build 1 flood diversion channel, namely building one flood diversion channel along Municipal Political Consultative Conference, Municipal People‟s Congress, Guangming Village and Zhangluo highway with a length of 2.25km.

 To construct 8 culvert gate drainage works, of which 3 for Donghe River left bank and Wenxihe River right bank protection circle, 3 for Wenxihe River left bank and Donghe River left bank protection circle and 3 for Donghe River right bank protection circle. According to the feasibility study, the total investment for Jishou subproject is CNY 157.42 million, out of which, 39 percent would be financed by ADB loan.

B. Ethnic Minorities in Hunan

There are as many as 55 ethnic minority groups1 in Hunan making up a population of 8.33 million or 12.2% of Hunan‟s total population. There is one autonomous prefecture of ethnic minority in Hunan, which administrates 8 counties, 7 minority autonomous counties with more than 50% of the populating as minorities and 2 unofficial minority counties enjoying minority county benefits. 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 99.3% of the total minority population of Hunan. Most of them are located in the western Hunan (i.e., the Xiangxi Prefecture, Huaihua and Zhangjiajie municipalities), and the minorities in the western Hunan account for 75% of Hunan‟s total minority population. Table 2-1 presents the details based on the 5th national census.

Tab 2-1: Minority People in Hunan Province (2007)

Items Ethnic group Population % of minority % of total population groups

Main group Han 59,723,105 87.8

Minority groups Tujia 3,536,976 42.4

1 In other words, all the 56 ethnic groups within China (55 ethnic minority groups and Han) are represented in Hunan.

8 Miao 2,401,869 28.8

Dong 1,027,390 12.3

Yao 951,161 11.4

Bai 175,836 2.1

Hui 126,578 1.5

Zhuang 33,925 0.4

Mongol 23,804 0.3

Other 56,364 0.7

Subtotal 8,333,902 100 12.2

Total 68,057,007 Source: Hunan Statistical Year Book 2008.

C. Legal Framework

1. 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

9 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.

2. ADB Policy on Indigenous People in Project Area (PA)

The Asian Development Bank (ADB) notes that the social indicators, economic status and quality of life of minority peoples are often below those of the mainstream population. While fully recognizing the sovereignty of the borrowing country, 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, welfare and interests of national minorities. Where ADB-assisted projects will potentially cause adverse affects on national minorities, ADB requires the borrowing country (or project initiator of private sector) to prepare an Ethnic Minorities Development Plan (EMDP) acceptable to ADB. A EMDP should describe the socio-economic characteristics of minorities affected by the project, identify significant project impacts, both positive and adverse which affect them, and should consider modifying or redesigning the project to minimize adverse effects and/or include an acceptable compensation plan. The MPDP also provides procedures for project implementation, monitoring, and evaluation of how to handle minority affairs. The ADB‟s Policy on Indigenous Peoples (1999, Manila) sets out the criteria for determining whether or not an EMDP 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 Initial Social Assessment 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).

10 III. ETHNIC MINORITIES IN THE PROJECT AREA

A. 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 Jishou 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. Within the urban area of Jishou, there are 46,259 households and 154,000 persons. Among the total population, female accounts for 45.9% and male accounts for 54.1%. At the end of 2007, the urban population was 132,594, accounting for 86.1% of the total population. There are 107,184 ethnic persons, accounting for 69.6%, which include 58,308 persons of Tujia nationalities, 47,161 persons of Maio nationalities and 1715 persons of other 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. Only the data on ethnic minority were used to prepare this EMDP.

B. Ethnic Minority 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 3-1 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 6.80 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 Yuanjiang 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 Changde Municipalities. There were 2.53 million of Tujia nationalities in these three municipalities, accounting for 90.4% of the total Tujia people in Hunan Province. Miao nationalities are mainly living in Xiangxi Prefecture, Huaihua and Shaoyang Municipalities, with 1.95 million people and account for 95.4% of total Miao people in Hunan. Dong nationalities are mainly in Huaihua Municipality, with 834,720 persons or 94% of total Dong nationalities in Hunan. Yao nationalities are concentrated in Yongzhou City – the south end of Hunan, with 531,320 persons or 71.8% of the total Yao people in Hunan. Bai nationalities are

11 mainly located in Zhangjiajie City with 109,076 persons or 81.4% of total Bai people in Hunan Province.2 Most of the minorities are concentrated in the mountainous regions in the north, west, and south of Hunan, bordering with neighboring provinces.

Table III-1: Ethnic Minority Population in the Four River Basins (2007) (1,000 persons)

Items Xiangjiang Zishui Yuanjiang Lishui Total Hunan

Total Population 31,262.09 10,416.04 8,340.88 2,604.71 52,623.72 68,057.00

Han 30,356.50 10,294.04 3,982.39 950.04 45,582.97 59,723.10

Minority Total 905.59 122.00 4,358.49 1,654.67 7,040.75 8,333.90

% 2.90% 1.17% 52.25% 63.53% 13.38% 12.25%

Tujia 39.76 2.24 1,256.90 1,489.14 2,788.05 3,537.00

Percent of Total 0.13% 0.02% 15.07% 57.17% 5.30% 5.20%

Miao 28.47 17.29 1979.30 26.46 2,051.52 2,401.87

Percent of Total 0.09% 0.17% 23.73% 1.02% 3.90% 3.53%

Dong 8.64 6.24 969.47 0.54 984.89 1027.39

Percent of Total 0.03% 0.06% 11.62% 0.02% 1.87% 1.51%

Yao 720.26 44.98 102.56 0.36 868.16 951.16

Percent of Total 2.30% 0.43% 1.23% 0.01% 1.65% 1.40%

Bai 2.23 0.13 26.07 134.16 162.59 175.84

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

12 Percent of Total 0.01% 0.00% 0.31% 5.15% 0.31% 0.26%

Hui 10.66 45.76 17.24 2.60 76.26 126.58

Percent of Total 0.03% 0.44% 0.21% 0.10% 0.14% 0.19%

Zhuang 29.2 1.0 1.9 0.4 32.5 33.93

Percent of Total 0.09% 0.01% 0.02% 0.02% 0.06% 0.05%

Others 66.38 4.39 5.00 0.98 76.75 80.17

Percent of Total 0.21% 0.04% 0.06% 0.04% 0.15% 0.12% Source: Hunan Provincial Ethnic Commission.

C. Ethnic Minorities in Project Counties

The proposed 35 subprojects under the Project will involve 46 counties or districts, which are defined as Project Areas (PA). Table 3-2 presents the distribution of ethnic minorities in the project areas, which shows similar distribution patterns across the four river basins. Among 46 project counties, there was 3.15 million of ethnic minority population, accounting for 12.3% of the total population in the project counties. Among them, there were 1.54 million Tujia nationalities, accounting for 49% of the total minorities, 0.57 million of Yao nationalities, accounting for 18%, 0.46 million of Miao nationalities, accounting for 15%, 0.24 million of Dong nationalities, accounting for 8%, and 0.11 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.

Tab 3-2：Ethnic Minority Population in the Project Areas of the Four River Basins (2007) (1,000)

Items Xiangjiang Zishui Yuanjiang Lishui Total Hunan

Total Population 14,260.51 6,417.93 3,234.54 1,849.22 25,762.19 68,057.00

Han 13,551.88 6,365.04 2,106.48 583.13 22,606.53 59,723.10

Total Minorities 708.63 52.79 1,128.06 1,266.09 3,155.66 8,333.90

Percent of Total 4.97% 0.82% 34.88% 68.47% 12.25% 12.25%

13 Tujia 10.58 1.23 392.72 1,131.86 1,536.39 3,537.00

Percent of Total 0.07% 0.02% 12.14% 61.21% 5.96% 5.20%

Yao 493.68 7.50 70.86 0.10 572.14 2,401.87

Percent of Total 3.46% 0.12% 2.19% 0.01% 2.22% 3.53%

Miao 9.45 9.86 422.30 22.80 464.41 1,027.39

Percent of Total 0.07% 0.15% 13.06% 1.23% 1.80% 1.51%

Dong 3.70 2.98 229.74 0.31 236.72 951.16

Percent of Total 0.03% 0.05% 7.10% 0.02% 0.92% 1.40%

Bai 0.72 0.10 1.44 108.25 110.40 175.84

Percent of Total 0.01% 0.00% 0.04% 5.85% 0.43% 0.26%

Hui 3.49 26.80 5.96 1.23 37.59 126.58

Percent of Total 0.02% 0.42% 0.18% 0.07% 0.15% 0.19%

Zhuang 18.28 0.41 0.51 0.21 19.31 33.93

Percent of Total 0.13% 0.01% 0.02% 0.01% 0.07% 0.05%

Others 168.84 4.01 4.52 1.54 178.80 80.17

Percent of Total 1.18% 0.06% 0.14% 0.08% 0.69% 0.12% Source: Hunan Provincial Ethnic Commission.

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, Jishou, Fenghuang, Baojing and Xinhuang Counties. The second type is non ethnic minority county but enjoying the same status and benefits of the minority counties. Sangzhi Coutny is such county, accounting 50% of that in Hunan. The third type is non minority counties, but with more

14 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. Of these 9 counties, 2 are from Xiangjiang, 3 from Lishui, and 4 from Yuanjiang. Its total population is 3.59 million, with 2.57 million being ethnic minorities, which accounts for 72%. The total minority population from these 9 counties accounts for 82% of the total minority population in the project areas (3.15million). Of the total population, urban population was 0.91 million, accounting for 25.2%, which is only 74% of the project area average. The rural population was 2.68 million, accounting for 74.8%, which was more than 11.5 points higher than the average of 46 project counties. In other words, these minority concentrated counties have much lower urbanization level than the provincial average. There are 3.69 million mu of farmland in these 9 counties, averaging 1.03 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 9,420 in 2007, which was only 65% of the provincial average and 74% of the PA. The rural per capita income was CNY 3,240, which is only 75% of the project area average and 70% 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 6.8% among the minority regions in Hunan, which was 25 points higher than that of Han dominated regions; and percent of the minorities with high school or above education was 14.1%, which was 2.24 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 22% of the total rural population in the 9 counties, of which the extremely poor account for 23%.

D. Ethnic Minorities in Jishou City

The proposed Jishou Flood Control Subproject is one of the subprojects under Hunan Flood Management Project. This subproject is located in the urban area of Jishou City, western Hunan Province. Jishou urban area is located in the southern part of north Wuling Mountain, bordering with Luxi County in the southeast, Fenghuang and Huayuan Counties in the west, Baojing and Guzhang Counties in the north. The width from east to west is 55.9km and the length from south to north, 37.3km. And the total land area of the whole city is 1062km2. There are 5 ethnic minorities in Jishou City and most of them are Tujia, Miao, Hui and Yao nationalities. Among them, two ethnic minorities (Tujina and Miao) are native people, who have been living there for over 800 years. The total ethnic minority population in Jishou was 202,071 persons in 2007, accounting for 69.92% of the total population.3 Among them, Tujia nationality accounts for 47.1%, Miao nationality accounts for 51.5%, Yao nationality accounts for 1.22% and Hui nationality accounts for 0.18%. Jishou was official minority county under jurisdiction of Xiangxi Tujia and Miao Autonomous Prefecture. However, given the high

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

15 concentration of ethnic minority population, Jishou has been granted special minority status and entitles most policies and privileges of ethnic minority counties. The GDP of Jishou in 2007 was CNY 3875 million and per capita GDP was CNY 17584, which accounts for 121% of Hunan average (CNY 14492). In 2007, the per capita income of the rural population was CNY 2519, which was 64.5% of the Hunan average; namely CNY 3904 and the per capita income of the urban population was CNY 8936, which was 72.7% of the Hunan average, namely CNY 12294.

16 Table 3-3 Demographic Conditions of Jishou City

Item Jishou Hunan Total Households 99221 20，859，100 Total Population (Person) 289012 68,057,000 Male (Person) 147554 35,338,700 Female (Person) 141458 32,718,300 Rural Population (Person) 106400 40,527,900 Urban Population (Person) 182600 27,529,100 Percent of the Urban Population 63 40.5 (％) Total Labor (Village) 100600 25,780,600 Male Labor (Village) 54600 13,968,270 Female Labor (Village) 46000 11,812,330 Ethnic Minority Population 202071 8,330,000 (Person) Percent of Ethnic Minority 69.92 12.2 Population(％) Source: Jishou Statistical Yearbook 2008 and Hunan Statistical Yearbook 2008 Table III-4: Basic Economic Condition of Jishou (2007) Economic Indicators Jishou Hunan Percent (%) Total GDP (CNY billion) 3.88 920 0.42 Per Capita GDP (CNY) 17584 14492 121.3 Per capita farmland (mu) (1 h a = 15 mu) 0.57 0.84 67.9 Per capita income in rural area (CNY) 2519 3904 64.5 Per capita income in urban area (CNY) 8936 12294 72.7 Source: Jishou Statistical Yearbook 2008 and Hunan Statistical Yearbook 2008

E. Ethnic Minorities in Project Protected Areas (PPA)

In Jishou City, the proposed flood control subproject will directly protect the urban area, which is defined as the project protected area (PPA). Based on 1 in 50 year return flood protection standard, the proposed flood works will form the protection zone. The protection zone of the flood control project only covers part of the existing Jishou urban area, with an area of 18km2. The total urban area of Jishou City involves 4 sub-districts, 21 residential communities, 2 townships and part of the population from 18 villages. All of them are under administration of Jishou City.

As the Prefecture government of Xiangxi Autonomous Prefecture, Jishou City urban area includes 4 sub-districts, 21 residential communities, 3 townships and 25 villages. In 2007, there were 46,529

17 households and 154,000 persons in the urban areas. Among them, 69.6% are ethnic minorities with 56.2% as Tujia nationalities, 42.9% as Miao nationalities, and 0.90% as other nationalities. The difference of basic economic condition between the rural part of and the urban part of Jishou City protection area is small. In rural part of the city, there are 3 townships and 25 villages with 6,444 households and 21,072 persons. About 99% of population is rural residents with per capita farmland being 0.44 mu. In urban part of the city, there are 21 residential committees with 40,039 households and 130,928 residents. All of them are urban residents and part of the population from 18 villages is also included in it. Only part of urban area will be protected by the Project. There are 8,942 households and 29,130 persons in PPA, accounting 19.2% of the total population.

Table III-5: Basic Economic Conditions of Urban Areas of Jishou City (2007) Jishou Total Total Total Rural Urban Total Per capita Villages Urban Area Households Population Residents Residents Farmland Farmland Rural Area 25 6444 21072 20861 211 9345 0.45 Urban Area 21 40039 130928 0 130928 0 0 Total 46 46529 152000 20861 131139 9345 0.45 PPA 39 8942 29130 2316 26814 1650 0.71 Percent 84.8% 19.2% 19.2% 11.1% 20.4% 17.7% Source: Jishou PMO and field survey (Note: The scope of the 39 residential committees (villages) refers to the population threatened by 1 in 50 year return floods, instead of all the population of the 39 residential committees (villages)). Of the total population in the protection area, there are 26,814 urban residents (accounting for 92%). Among them, there are 20,212 persons from ethnic minorities, accounting for 69.4%. Eight percent of the total population is rural population and the average farmland is only 0.71mu. Most of them are used to grow vegetables and other cash crops. The continuous urban expansion and farmland acquisition around the urban area is the main cause for this phenomenon. As the urban area of Jishou City Subproject, the GDP is composed of the following: added value of agriculture only accounts for 5.1%, 14.0% lower than that of Hunan average; added value of industry accounts for 52.0%, 13.3% higher than that of Hunan average; and added value of the tertiary industry accounts for 42.9%, 0.7% higher than that of Hunan average.

Table 3-6: Demographic Profile of Residential Committees in PPA (1) (2007) Offices Number of Total Total Urban Rural Percent of (Townships) Villages/Resi Households Population Population Population Urban dential Population Committees Jishou 11 1035 3171 1821 1350 57.0 Township Wanrongjiang 7 635 1957 991 966 51.0 Township Donghe Office 3 162 522 522 0 100.0 Shijiachong 8 3948 13631 13631 0 100.0 Office Hongqimen 6 2861 9113 9113 0 100.0 Office

18 Qianzhou 4 301 736 736 0 100.0 Office Total 39 8942 29130 26814 2316 92.0 Note: For city institutions and enterprises, no household figure is available. Source: Jishou PMO.

Table 3-6: Demographic Profile of Residential Committees in PPA (2) (2007) Offices Number of Farmlan Per Total Male Female Minority Percent (Townships) Villages/Residen d (mu) Capita Rural Labor Labor Population of tial Committees Farmlan Labor Minority d (mu) Jishou Township 11 841.2 0.62 688 471 217 2227 70.2 Wanrongjiang 7 808.8 0.84 478 330 148 1505 76.9 Township Donghe Office 3 0 0 0 0 0 350 67.0 Shijiachong Office 8 0 0 0 0 0 9238 67.8 Hongqimen Office 6 0 0 0 0 0 6411 70.4 Qianzhou Office 4 0 0 0 0 0 481 65.4 Total 39 1650 0.71 1166 801 365 20212 69.4 Note: For city institutions and enterprises, no household figure is available. Source: Jishou PMO.

In the project protected area, among total beneficiaries, 20,212 persons are ethnic minorities, accounting for 69.4%. Seventy percent of the population in communities are ethnic minorities. The dominant minority groups are Tujia and Miao, which makes up 68.7% 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 3-8 provides composition of ethnic background among communities in PPA. During the field assessments, a number of participatory assessment sessions, consultations, discussions and interviews were held with the minority population in the PA. These included staff of project PMO, Jishou City 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 III-7: Ethnic Profile in the Project Protected Areas for Jishou Subproject (2007) Villages Total Ethnic Ethnic Groups Offices/ (Residential Population Minority Townships Han Tujia Miao Other Committees) Population Jishou Township 11 3171 944 2227 1188 888 151 Wanrongjiang Township 7 1957 452 1505 789 710 6

19 Donghe Office 3 522 173 350 182 167 1 Shijiachong Office 8 13631 4393 9238 5366 3854 18 Hongqimen Office 6 9113 2702 6411 3547 2851 2 Qianzhou Office 4 736 255 481 278 207 2 Total 39 29130 8918 20212 11350 8671 190 Percent 100.0 30.6 69.4 56.2 42.9 0.90 Source: Jishou Subproject PMO and field survey.

F. Ethnic Groups and Their Distribution

1. Tujia The Tujia people live predominantly in (i) western and northwestern Hunan4; (ii) southwestern Hubei5; (iii) eastern Chongqing. In the project area the Tujia is the largest minority group making up 28.9% of the total minority population in Jishou. 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 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. Miao

The Miao people ranks second in Jishou City, despite being the second 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 Jishou, there are 47,161 Miao nationalities, accounting for 23.3% 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. Western Hunan is host to one of the three main dialects6 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

4 Mainly in the Xiangxi Tujia and Miao Autonomous Prefecture and the Zhangjiajie Municipality 5 Mainly in the Ensi Tujia and Miao Autonomous Prefecture. 6 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.

20 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 back many centuries.

3. Other Minorities

Other ethnic minorities, including Yao, Hui and Mongolian are not present in PA. These minorities account for only 0.8% 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. G. Socioeconomic Characteristics of Minority Communities

For the whole project protected area, 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 and Miao in the project areas:

 Although Tujia and Miao people have their own languages (old people can speak and young people can understand the languages), most of the Tujia people can speak fluent mandarin Chinese, especially the younger generation and those living in towns. Only in few remote compact communities does the Tujia language remain.

 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 city poverty alleviation office and ethnic affairs bureau, these 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

21 (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. 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 reflected in most aspects, such as education, income level, living condition, and non-farm income activities. Table 3-9 presents the socioeconomic characteristics of the sample households.

Table III-9: Socioeconomic Characteristics of Minorities and Han in PPA

Han Minorities Rural Average Category Indicator Unit (17 sample HHs)1 (20 sample HHs)1 In Jishou City *

Average HH Size Persons 3.5 4.5 3.8 General Per capita annual income CNY 3197 1980 Adult(median) Illiteracy 1.5% 3375 3.2% 9.5%

Primary school graduate % 5.8% 8.6% 37.4% Education Middle school graduate 38.6% 35.7% 25.7% High school graduate 52.6% 48.7% 15.5% Above high school 4.4% 2.8% 1.4% Cultivated land per person Mu 0.71 0.70 0.44 Grain Production per Person Kg 420 420 470 Agriculture Housing spaces per personj M2 62 58 40 Agricultural Inputs per person CNY 2960 2750 2649 Agriculture 2 (11%) 5 (25%) 24107 (45%) Animal Husbandry 2 (10%) 5 (27%) 14464 (27%) Income HHs (%) Source Non-Farm (by being employed for construction, factories, 13 (79%) 10 (48%) 15000 (28%) housekeeping, restaurants, etc.) Farm vehicle 27% 33% n.a. Motorcycles 55% 40% n.a. Assets Air Conditions % 49% 44% n.a. Color TV 85% 90% n.a. Mobile Phone 59% 63% n.a.

1 The samples were selected from common residents excluding government officials at random.

Source: Field survey and Jishou City 2008Statistical Yearbook.

22 Poverty: In Jishou City, there is considerate rural poverty with 39,027 persons. Among them, there are 13,108 persons with the per capita annual income below CNY 900, which accounts for 12.3% of the total rural population. And 5802 persons are extremely poor with per capita income below CNY 627, accounting for 5.5% of the total rural population. Most these rural poor are distributed in the 35 poverty villages. In PPA of Jishou, the total poverty population is 246 people, making up 1.2％ of total rural population of Jishou protection area, 12.6% of the total rural poverty population of Jishou protection area and 0.63% of the total rural poverty population of Jishou City. These poverty villages are not in PPA, since the rural population in PPA is relatively small (2316 persons). The rural poverty incidence in PPA7 is 10.6%. For the urban poverty, the urban poverty population is 1801 persons in PPA, making up 20.9% of the total poverty population of Jishou urban area (8599 persons). The urban poverty incidence in PPA is 6.7%. Relatively speaking, the urban poverty population occurring rate is 12.8％, which is lower than rural poverty population occurrig rate (the urban poverty line is the income per month per capita less than CNY 200 and the income per capita is CNY 2400).

Income: In Jishou City, the average per capita income among rural population in 2007 was CNY 2,519. In part of the PPA of Jishou City, the average annual income in the 21 communities was CNY 6976. In comparison, the average annual income among 25 villages (rural part) in Jishou protection area was CNY 3071. The better infrastructure and easy access to non-farm based income activities in 21 urban communities might explain such difference, which was confirmed from surveyed sample households in PPA. Among 37 sample households, per capita income was CNY 3,286, with 63.5% of income coming from non-farm sources. Among them, per capita income among Han families was CNY 3,197, which is slightly lower than that among minority families (CNY 3,375). Education: Based on sampling in PPA, there is some difference in the aspect of educational background between Han household and ethnic minority household. For example, the illiterate rate of ethnic minority household is 3.2% and the illiterate rate of Han household is 1.5%. The senior middle school education rate of Han household (52.6 %) is higher than the one （48.7%) in ethnic minority. However, if comparing with the educational condition of village population in Jishou City, these differences are not obvious. In other words, the educational level of PPA Han and ethnic minority is better, comparing with the total county average level. Agriculture: Because most village population takes plantation as their main income source, effective irrigation is an important index for farmland production. There are 9345 mu farmland in Jishou City protection area, including 405,206 mu, accounting for 70% of the total. In Chujiang Town, there are 15102 mu cultivated land. Among them, irrigated farmland accounts for 89% of the total. Among the total farmland of Jishou City, there are only 3280 ha irrigated farmland, which accounts for 40% of the total farmland (8200 ha). 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.

7 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.

23 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 surveyed8, the basic 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, 85% 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 Jishou 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.

H. 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 by an overall master plan and sector development plans 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 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 project9.

8 2 group discussions were held with women – 1 in rural village and 1 in urban residential committees. Most participants are minorities. 9 Specifying budget uses is also an anti-corruption measure

24 In addition to the sector development programs, there are specific minority development programs in the project counties that are administrated by Jishou 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, Jishou 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 6.88 million each year, which included CNY 6.50 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 CNY2.18 million from Provincial Ethnic Affairs Commission each year to be used to provide support for education and health care for minority people (see Table 3-9).

Table III-9: Minority Development Programs in Jishou City (2001-2007) Programs Sponsor Agencies Investment (CNY 104) Implementation Agencies Rural infrastructure – electricity, road, and National Grant City Minority Affairs 420 water Bureau Food and Clothing for Minority Villages National Grant City Minority Affairs 100 Bureau Minority Children Education Support National Grant City Minority Affairs 130 Bureau Minority Heath Care Assistance Provincial Grant City Minority Affairs 108 Bureau Rural Education Support Provincial Grant City Minority Affairs 110 Bureau Total 868 Source: Jishou City Minority Affairs Bureau.

25 IV. PROJECT IMPACTS ON MINORITIES

A. Past Flood Impact

Jishou City is located in the west of Hunan Province, and its urban area is situated at the middle reaches of the Donghe River (the upstream section of Wushui River). Because of uneven rainfall/precipitation distribution within a year which mainly concentrates on April~August usually with big rainstorm intensity, it is easy to cause outbreak of mountain flooding. As a result, Jishou City experiences frequent flood disaster with localized floods occurring every year. The recent 20 year disaster statistics data analysis in Jishou shows: the flood and inundation disaster is the main natural disasters in this city, and occurs frequently. In recent years, there is the tendency of worsening. From 1978 to 2002, the direct economic loss in Jishou City caused by flood disasters is over CNY 31 million each year. The number of floods and the flooding depth are simple, but the experience brought to each person by the flood disaster is actual and real. Table 4-1 presents the understanding and experience of different groups towards flood disaster. Table 4-1: Description of Flood Impacts by Different Groups in Project Area Groups Actual Flood Impacts to the Communities  We‟re looking forward to build flood control dikes.  The houses and roads are destroyed every 2 years. Urban residents  Water pollution exists after floods.  We cannot wash vegetable as usual.  Our houses and the road destroyed almost every 3 years in the river.  Big floods occurred in 1954 and 1998.  After flood, grain production reduced and catastrophic flood may cause null harvest.

Vegetable growers  Flood will wash away cultivated land and fertile soil.  After flood, living is inconvenient for a period of time.  Roads are also damaged, must be repaired by villagers several times.

 In summer, flood prevention and flood control are the main mission to cadres, other Cadres of villages or matters all need to give away to flood prevention. residential committees  In case of heavy rainfall, men must be sent to watch the river dike, men must be available in the telephone, close attention must be paid to the weather forecast and to the notification of upstream reservoir flood discharge. Small business persons  Mainly suffering from cargo loss.  Business in flood period will be affected, goods inventory and sale are all affected.  Each kind of public service is chaotic.  City drainage system is also blocked.  Farmlands will be washed away and damaged. Sources: Field visit and small group discussions.

26

Among the poor people in PPA, frequent flood is one important factor for causing such poverty. According to the estimate made by Jishou Poverty Alleviation and Development Office, about 60 percent of rural poor 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 faJishouties, 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.

B. Project Benefits for Different Beneficiaries

The proposed Jishou 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. 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

27 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 Jishou City. According to the social and poverty assessment, there are 29,130 persons, among which ethnic minorities account for 69.4%. Among them, 11,350 are Tujia people, 8,671 are Miao people and 190 are ethnic people. 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 4-2.

Table 4-2: Positive Impacts of the Flood Control Project Groups Positive impacts to be brought by Jishou flood control subproject

 Protect properties such as houses, furniture and electric appliances.  Prolonged house and furniture life.

 Protect normal life order. Urban women  Promote city infrastructure construction.

 Advantageous to wealth accumulation and development without worry, do good housing construction.  Advantageous to trade and investment invitation, and economic development.

 Can work outside Urban residents (male)  Can live along riverside free from anxiety.  Reduced flood-fighting duty.

 To guarantee the life and property safety  Reduce flood prevention and flood-fighting works volume.  Improve the environmental sanitation condition along the river. Cadres of residential  Save expenditure for epidemic prevention. committees  Promote trade and investment invitation.  Improve water sewage system.

 Protect vegetable plot and vegetables. Male vegetable  Improve sanitation. growers  Promote traffic improvement. Female vegetable  Protect properties such as houses, furniture, and electric appliances.

28 growers  Reduced skin disease.  Improve environment and transportation.  More convenient to wash in riverside.  Reduce cargo loss. Small business  Improve environmental sanitation. persons  Attract investment, promote economic development.  Some people may contract projects and sell raw materials.

 Attract outside investment. Factories  Land value is increased.  Create development opportunity.  Improve water sewage system. 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 0.51810 million work days are available, if unskilled laborers are employed, the poverty households will gain an income of CNY 1.58 million, at least 80%of the labor comes from minority population and a wage of CNY 1.28 million will be earned by the minority people.  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.

10 Assessment carried out by PPTA consultants is based on the data in the preliminary design report.

29  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 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.

C. Potential Negative Impacts of Resettlement

During the community survey, the possible negative project impacts identified by different groups (for details see Table 4-3) mainly include: land acquisition, house removal, and resettlement. According to the detailed survey, the project will take up a total land area of 7.96 hectares, of which the land area in countryside accounts for 40.2%, and a total of 3 offices, 15 villages, 236 enterprises, 287 households and 1040 people will be affected. The project construction will temporarily occupy land 7 hectares. Besides land acquisition, the floor area of house removal is 32,517 square meters, of which the floor area of residential houses is 23,695 square meters and floor area of non-residential houses is 8,822 square meters. Along with land acquisition, a total of 32,517 square meters of buildings would be demolished, including 23,695 m2 of urban residential structures and 8,882 m2 of non-residential structures. The demolition will cause relocation of 231 households and 835 individuals, and affect thirty-six enterprises and administrative units. Although the amount of land acquisition and demolition is not significant, for affected individuals and communities, the impact could be quite significant. For example, each villager will lose 0.001 hectare of cultivated land due to land acquisition, namely 0.8% of their current cultivated land. On the other hand, most impacted villagers are not longer relying on agriculture as their main income source. Based on the selected household investigation, only 25% income comes from plantation industry. So, through readjustment of farmland, investment on animal husbandry, large shed vegetables and other income increasing activities, each impacted person will be able to recover his income to the level before. 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 with the PRC Land Administration Law (1998), Large 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. In terms of rehabilitation for house demolition, for affected urban 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 CNY24.738million.

30 The HPWR and Jishou 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 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. The project implementation will produce a certain impact on socio-economic factor: 1). The urban area of Jishou City is located in the project affected area with good infrastructure conditions, where the local farmers have a lot of opportunities in non-farm employment, such as daily labor and small business. Most those surplus labor forces have moved into the second and tertiary industry or individual business, gradually moving out of reliance in the land. According to the investigation, in 2005, in the affected Jishou City, there were 10945 employed labor forces, including 6832 non-agricultural population of industry, building construction, traffic, wholesale and retail, accounting for 62.42% of the rural labor forces. Analysis from the incomes structure, in 2005, the annual total income per household of the affected households was RMB 10172 yuan, including RMB 8636 yuan for the agricultural incomes, accounting for 84.9 % of the total income; RMB 884 yuan for the agricultural income, accounting for 8.69% of the total income. The investigation shows that in spite of the land loss, the local farmers will suffer the decrease of agricultural incomes, however, due to the small proportion for plantation in the total incomes, they will have little impacts on their production and living. 2). For farmers with land plantation as their main livelihood resources, the land loss will result in the loss of complete or partial means of production, however, as the project is linearly distributed along the Lishui and Loushui River, the land acquisition of the project will result in insignificant influence on the agricultural production of resettlers, on average, each affected village will lose 7.69mu of their land. For 2 affected village groups, all of them would lose about 0.8% of their existing land. However, for those households directly affected by land acquisition (57 households and 198 persons), every affected person will lose about 23.08% of their land holding. According to the on-spot investigation, the land acquisition will affect 15 villager groups, all villagers have the cultivated land occupied 8.97 mu at best and the quantity of land occupied in other groups is between 1.14mu and 8.97mu. Most affected farmers would have limited impacts due to land acquisition. For such impact, it is planned that local farmland adjustment will be adopted as basic rehabilitation strategy, which will not impact the traditional production mode and livelihood of the affected persons, and can restore, or even develop their living standard within short period of time; the cash compensation can be adopted, which will be paid directly to the affected farmers to be used to undertake other agricultural activities to create revenues (such as adjusting plantation structure and developing greenhouse vegetables) or other non-agricultural activities to create revenues (such as development of livestock breeding). These activities will increase their incomes and

31 mitigate acquisition impacts so that their income and livelihood could be restored and improved after land acquisition. 3). For relocated households, the process of moving and decorating new houses will consume certain manpower and material resources for the affected households, which need to be considered by the project sponsors. The PMO will, according to the relevant policies, make compensation to their loss of moving and traffic costs, on site infrastructure costs for the new housing plots, and necessary transfer allowance during relocation and rehabilitation. In addition, the PMO and the local village committees will provide necessary assistance in the process. Therefore, the impacts from the project will be reduced to the minimum. 4). For the relocated enterprises and institutions, relocation needs a period of time or a certain procedure to identify new spaces, which will affect normal operation for a period of time and will result in the loss of operation incomes for them. According to the investigation findings, the 36 affected enterprises and institutions have the auxiliary administrative houses and production houses occupied, so their production and operation have not big impacts. Furthermore, they can obtain the relocation subsidies, the compensation for shutdown loss during relocation and reconstruction period and for production equipment, and the assistance of the local government and relevant departments, and so their normal production and operation shall be recovered or developed within the short time. The project construction will bring certain influence on the residents and businesses within the project area, but the impact is little and after completion of the project, it will create favorable conditions for further development of Jishou City, and facilitate the sustainable quick increase in economy. 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.

32 Table 4-3 Basic Conditions of Affected Villages (Residential Communities) in Jishou City Urban Flood Control Project

（ （ Population Person Cultivated Land Area mu Ethnic Minorities Vulnerable Group ） ） Cultivat Towns ed Income Village Agric Com Land Per hip (Comm Non-agri Dry merci Per Capita( Numbe (Sub-d Tota ultura cultural Padd Far al r of Percenta Number Percentage istrict) unity) l Total y Capita yuan/y of l Popul Populati Field mlan Veget （mu ear) Person ge (%) Persons (%) on d able ） s ation Plot Dongh 734 1957. 138 4584 2764 222 354.6 0.43 2016 5373 73.12 191 2.6 e 8 4 0.8 Baiguo 689 321 368 97.9 21 76.9 0.3 2096 514 74.6 25 3.63 Datian 967 300 667 120 108 12 0.4 1965 748 77.35 36 3.72 Xinqiao

Village 730 277 453 13 13 0.05 1712 498 68.22 14 1.92 126 155. Wulipai 1065 202 155.5 0.15 1920 903 71.27 28 2.21 7 5 Linmus 103 940 90 575 53 522 0.61 2045 725 70.39 17 1.65 han 0 Tongyo

uping 481 469 12 275 135 140 0.59 2000 355 73.8 7 1.46 Yanzhai 147. 564 564 365 217.6 0.65 2104 421 74.65 27 4.79 Village 4 Guang 162 648 972 356 231 125 2338 1209 74.63 37 2.28 ming 0

211 1446 1893. 604. Qianzh 6689 976.8 312 0.13 2000 15339 72.53 401 1.9

ou 49 0 2 4 Xiaoxiqi 297 2466 513 470 305 165 0.19 1977 2200 73.85 105 3.52 ao 9 Jiefeng 176 143.0 718 1047 88.65 54.4 0.2 2228 1211 68.61 44 2.49 Village 5 5 Shucai 310 962 2138 426 23 91 312 0.44 2076 1059 34.16 65 2.1 Village 0 Shengli 303 2092 946 38 18 20 0.02 1711 789 25.97 80 2.63 Village 8 Shizi 517 4500 677 302 262 40 0.07 2185 8599 166.1 86 1.66 Village 7 Yunfen 379 2772 1023 321 252 69 0.12 1967 548 14.44 12 0.32 g Village 5 Xuanta 129 950 345 193.1 28.1 165 0.2 1856 933 72.05 9 0.69 n Village 5 155 Zhenxi Tuanjie 1559 2178 1127 72.29 28 1.8 9 300 1904 3850. 198 Total 11012 1199 666.6 0.2 2059 21839 72.66 620 2.06 56 4 6 5.2

33 Source of data: Jishou City PMO, the year of 2007

D. Expectations and Concerns

Between March and April of 2006, the resettlement survey team, under the cooperation of the governments at all levels in the project area, conducted a detailed survey on the basic social economic conditions of the affected households and the relocatees‟ willingness. 1) Investigation on the Basic Conditions of Affected Households For the investigation on the basic conditions of affected households, a sampling survey in site was made to the affected households. After filling the questions of survey form, the affected households made signature for confirmation. 38 households within the affected area of the project were selected as the sample, accounting for 13.24% of the total affected households. The samples are representative and typical, and can be used for basis for the project impact analysis. For the detailed sample survey distribution of removed households, see Table 4-4.

Table 4-4 Analysis of the Sampling Investigation on the Affected Households due to the Project Resettlement

Number of Total Township Affected Affected Sampling Sampling Percentage Remarks （Sub-district） Residential Households （%） Committees Households

Total 15 287 38 13.24

Donghe 8 211 29 13.74

Zhenxi 1 11 2 18.18

Qianzhou 6 65 7 10.77

2) Investigation on relocatees‟ willingness and attitudes Investigation on relocatees‟ willingness adopts the mode of sample survey with a sampling ratio of 5～10%. The resettlement planning team prepared a survey form. The different levels of governments organize people to distribute survey forms in the project areas and ask affected people to fill up. In the affected area of the project, there are 18 survey forms issued to the relocatees, and 17 effective forms returned with an effective ratio of 94.44%. The sample survey and analysis shows that:

34 ① Household Size of the affected households: 5.4 persons / family in average in the affected area of the project, including 3.7 persons for labor forces with age 17~60, 0.7 person of younger than 17 years old and 1 person of older than 60 years old. ② Gender Percentage: The male/female ratio in the project area is 1:0.60. ③ Age makeup: The labour forces at age of 17~60 possess 68.51% of the total population, 12.96% for younger than 17 years old and 18.53% for older than 60 years old. ④ Ethnic Background: The 28.03% of the affected people are classified as Han Nationality, and 71.97% as the minorities. ⑤ Educational level: In the affected area of the project, every 100 persons, there are 5 persons with educational level of higher than senior middle school, 38 persons with educational level of senior middle school, 33 persons with educational level of junior middle school, 20 persons with primary school and 4 illiteracies or half-illiteracies. ⑥ Housing area per capita: The housing area for every household is 110m2 and that per capita is 20.29m2. The structures of houses are mainly brick-concrete and brick wood structure. ⑦ The land contracted by the collective: In countryside, each household contracts 1.58mu of cultivated land, averaging 0.29mu per capita; The grain yield of each household is 1045kg in average 190kg per person. The livestock per household is 3 and the poultry is 7. ⑧ Family property: For every 100 households, there are 140 sets of TV ((including black and white TV, 52 sets and Colour TV, 88 sets)), 5 air conditioners, 70 refrigerators, 74 washing machines, 68 fixed phones and 40 mobile phones. ⑨ Economic incomes and expenditure: Each household has an annual total income of RMB 10076 yuan, averaging RMB 2370 yuan per capita; Each household has an annual total expenditures of RMB 5904 yuan, the annual expenditure per capita is RMB 4291yuan; Each household has an annual net income of RMB 9823 yuan, averaging RMB 2311 yuan per capita. For the total basic conditions of the affected households by the project, see Table 4-5.

Table 4-5 Summary for the Basic Conditions of Each Affected Household of Jishou City Urban Flood Control Project

Total of Samples (38 households) Minority Samples (28 households) Items Unit Indices per Indices Indices per Total per household Total household

I Affected household size 1.Total Population of person 206 5.4 162 4.2 Household Including: female person 61 3.24 50 1.8 2.Labor forces of 17~60 years person 141 3.7 109 3.9

35 Table 4-5 Summary for the Basic Conditions of Each Affected Household of Jishou City Urban Flood Control Project

Total of Samples (38 Minority Samples (28 households) households) Items Unit Indices per Indices Indices per Total Total per household household old

3.Population younger person 27 0.7 25 0.9 than 17

4.Population older than person 38 1 28 1 60

II Educational level 1.More than senior high school person 7 0.19 4 0.15 2.Senior high school person 62 1.62 26 0.92 3.Junior high school person 54 1.41 56 2

4.Primary school person 33 0.88 25 0.89

5.Non-educated person 7 0.19 7 0.25

III Nationalities 1.Han person 8 0.2

2. Ethnic Minority person 198 5.2 162 5.8

IV. Housing area 1.Housing area per household m2 4180 110 3024 108

2.Housing area per m2 4180 20.29 3024 18.67 capita

V. Agricultural production 1.Contracted plantation area per household mu 28652 754 24472 874 2.Plantation area per capita mu/person 5306 139.63 4219 150.69 3.Grain yield kg 39710 1045 30884 1103 7354 193.52 5325 190.17 4.Grain occupation per kg/person

36 Table 4-5 Summary for the Basic Conditions of Each Affected Household of Jishou City Urban Flood Control Project

Total of Samples (38 Minority Samples (28 households) households) Items Unit Indices per Indices Indices per Total Total per household household capita

5. Livestock Piece 114 3 168 6

6. Poultry Piece 266 7 308 11

VI. Household property 1.TV set 54 1.41 39 1.38

Including: color TV set 33 0.88 21 0.75

2. Air Conditioner set 2 0.05 6 0.2 3. Refrigerator set 27 0.7 20 0.7 4. Washing machine set 28 0.74 22 0.8

VII. Annual total income 386536 10172 223440 7980 1.Agricultural income yuan 214168 884 120624 4308 2. Animal husbandry income yuan 43776 652 26180 935 3. Non-agricultural income yuan 128592 8636 76636 2737 VIII. Annual consumption yuan 224960 5920 164836 5887 expenditure 1.Living expenditure yuan 163590 4305 119756 4277 2.Production expenditure yuan 39292 1034 28700 1025

3.Other expenditures yuan 22078 581 16380 585

IX. Annual net 379278 9981 270620 9665 household income yuan

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:

 To build wide embankment in order that vehicles can pass through.

 To commence the work as soon as possible.

37  For possible impact s brought by the resettlement, provide detailed compensation standard and job opportunities.  To provide job opportunities during the process of construction.

 To provide credits for small shops. During survey, the interviewed people made selection and sequence arrangement to rural and urban development requirements. The first five projects which are needed urgently are selected by them. Within the investigated groups, there are four groups to list this project as the most precedent project, and the others, in sequence, includes: providing more income generating opportunities, building roads for local people, providing credit, improving educational condition, lowering down the tuition, better medical care service etc.. For the investigation result, please see Table 4-6. Table 0-6: Priority needs Perceived by from the Community Residential Gender 1 2 3 4 5 Committee/Village Improving Male Proposed Other flood control More non-farm Better sanitary the sewage project measures job chances facilities treatment Xiaoxiqiao Improving More educational Providing Proposed non-farm Female project income-generating More credit condition/ technical opportunities lowering down the tuition training Improving educational Better Proposed Better road Better public Male project conditions condition/ safety medical lowering down service Guangming the tuition Proposed More non-farm job Better public Better Female More credit medical project opportunities safety service

E. Poverty Reduction Measurement

The major poverty problem of Jishou City is rural poverty. According to official account, there are 39,027 persons under the poverty line in rural areas. Among them, 5,802 persons are extremely poor with per capita income below CNY 627, accounting for 14.9% of the total rural poverty population. Most of the poverty people are located mountainous regions with harsh natural conditions, and poor accessibility. Some of the rural poverty is caused by frequent flooding since part of Jishou is located in one of heavy rainstorm areas in Hunan Province. However, since the project protected area covers mainly urban area, the majority of poverty persons in PPA are urban poor living below the minimum living safety line. There are only 246 rural poor in PPA, accounting for 1.1% of total rural poor persons in Jishou City. 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 Jishou City, since rural poverty is relatively high, there is on-going poverty alleviation effort funded by both provincial governments.

38 According to officials from Jishou Poverty Alleviation Office, there were about CNY8 million poverty alleviation funds allocated to Jishou City each year for poverty reduction efforts, with CNY 3.2 million as poverty reduction grant, CNY 4.8 million as work for food program. About 70 % 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. Because of such efforts, the poverty population has been reduced steadily in the past 22 years. The extremely poor population – people who lack basic food and clothing was reduced by 102,900 persons between 1986 and 2007. The share of extreme poor people was reduced from 79.6% in 1986 to only 1.9% in 2007. Table 4-7 indicates such sharp decline during this period. Table 0-7: Change of Poverty Incidents in Jishou between 1986 and 2007 Year Extreme Poor Percent of Total Rural Poverty Percent of Total Rural Population Rural Population 1986 106600 79.6% n.a. 1993 82000 55.3% n.a. 2003 12000 7.6% 33000 20.8% 2004 6703 4.2% 21841 13.8% 2005 5800 3.5% 19800 11.5% 2006 4900 2.8% 16400 9.8% 2007 3700 1.9% 13500 8.2% For urban poor in Jishou, 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 Jishou Civil Affairs Bureau, for 2007, there are 7,357 persons in Jishou City are provided with living allowance subsidy, with a total of Y6.14 million, averaging Y834 per person per year. Among the urban poor, losing regular jobs from state owned enterprises is one main factor. According to the statistics from the Jishou Civil Affairs Bureau, 75% of the people, who live by the Minimum Living Allowance (MLA), come from the state-owned and collective-owned enterprises. In order to address such problem, measures like providing re-employment trainings and introducing jobs by local labor and social protection bureau. Meanwhile, local governments also take positive employment policies and provide 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. 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)

39 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.

40 V. ACTION PLAN

A. Specific Measures/Activities

Tables 5-1, 5-2, and 5-3 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.

1. Mitigation Measures

Construction-related Disturbances. The proposed flood control works and their related facilities will directly affect the ethnic communities or villages within PPA of Jishou City. 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 17,000. 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 Jishou City is not a high risk area for HIV/AIDS, in order to ensure that Jishou will continue free of HIV/AIDS, Jishou City 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 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‟s 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.

41 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 monitory people. In addition, the people seriously affected by the land acquisition and resettlement of the Project will be offered training in agricultural techniques and non-agricultural skills according to their different situations in addition to land compensation and livelihood restoration provision. Those affected women (especially minority women) will be given priority in these training so that they can enhance skills and obtain better benefit opportunities by participating in non-agricultural activities. The resettlement organizations at all levels include staffs that are members of minority nationalities. Ethnic minorities and their representatives will be participating in resettlement, and such participation will run through the whole process of resettlement.

Table 0-1: Mitigation Actions Proposed Targets/Indicators Beneficiaries Budget (CNY 103) Timing Measures Protection of Prohibiting nighttime Including 17,000 minority To be included in EIA for 2006-2010 minority construction, restoring people from 39 residential the proposed subproject. communities damaged irrigation and committees (villages). from drainage systems construction disturbances: Control of Health clinics in Minority residents in PPA Included in the project 2006-2010 transmissible construction camps especially along the dike diseases HIV/AIDS and STIs alignment. Compulsory requirement prevention posters to contractors to take HIV/AIDS and STIs Over 2,000 construction action under the education programs workers supervision of county Implementation of the CDCs (Center for international anti-AID Disease Control) programs Zero case of HIV/AIDS in the project areas during the construction period Encourage Number of meetings Over 13,280 women from 39 Included in Government 2006-2010 women to Number of newsletters residential committees program participate in (villages). meetings and decisions Special support Special assistance to In 15 affected villages, the Included in Resettlement 2006-2007 to resettlement vulnerable people, vulnerable people account for Plan. affected people including keeping 1% of 7.5%. For total affected 1040 Employment skill training the total budget of persons, there are at least 78 is covered by both resettlement for them vulnerable people to be Resettlement Plan and Options of rehabilitation affected by resettlement. the existing Government for relocated households programs and respect to specific tradition Employment skill training

42 by minority trainers

2. Enhancement Measures Micro-Credit Program. Under the coordination of county poverty reduction offices, Jishou City Women Federation will provide micro-credit service to some 1,100 rural minority women in the 12 townships of Jishou City 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 3.42%. 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 and Miao minority cultures and establishing of tourism infrastructures. Preparation of tourism brochures and posters to distribute and display in the rest and parking areas and bus stations. 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.

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 5-2: Enhancement Measures Proposed Measures Targets/Indicators Beneficiaries Budget Source Timing (CNY) Micro credit (mostly to rural Minority women in Jishou 1100 minority women 1,100,000 Jishou 2006-201 women) City Women 0 Federati on Tourism promotion Building ethnic minority All minority population in the 5 – 6 million City 2006 plaza county town, especially small govern onward business persons ment s Advice on agricultural Affected minority Minority population of 819 Covered by Municip 2006 techniques and no-farm population in 15 project local al onward skills communities (villages) programs govern s ment Tax incentives Tax benefits for new small 20212 minority people in 39 Municip 2006 business, tax exemption communities (villages) al onward for agricultural activities govern s ment

43 3. 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 Jishou 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 5-3: Project Benefit Measures Budget Timi Proposed Actions Targets/Indicators Beneficiaries (CNY 103) ng Employment of minorities as Over 1,220,000 work days, 40% are to Included in 2006 unskilled labors for be awarded to minority population 490,000 work days civil works -200 construction related to the Contractors use 75% of local labors at a minority people contracts 9 flood control project minimum Included in Employment of minorities 40 positions for hire, of which 70% would 30 minority project 2010 labor in maintenance and be given to minority labors workers implementing onwa other related works budget rds

B. Budget and Financing Sources 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 and 5-2. Since project design is not finalized yet, budget for the various actions are subject to modifications in the future.

C. Implementation Arrangement Jishou PMO, through its implementing agency and the contractors, will play a leading role in implementing most of the construction-related measures previously presented. Specifically, Jishou 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.

Municipal 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.

D. Consultation and Participation Plan In the subproject implementation, the local governments and village committees will work closely in coordinating actual implementation, from organizing village labors input to avoiding or mitigating potential negative impacts. The entire subproject implementation will be closely supervised. The combination of city officials and representatives of villagers to form supervision team will be effective. Based on different situation

44 in different villages, different monitoring method could be used to ensure quality of the construction. It will be in villagers‟ own interest to ensure quality of construction since they will be part of beneficiaries when the subproject is completed.

After subproject construction, the assets require clear definition of ownership, responsibility, and funding for maintenance and operation.

E. Grievance Procedures

(1) Possible Complaint and Problem Solving Methods

The EMDP makes overall plan for ethnic minority development scheme from the angle of the affected area of the whole project. In the implementation process, ethnic minorities‟ complaint may appear because of the change of actual situation and deviation of operation. According to experiences got from the constructing and constructed projects, the ethnic minorities‟ complaint may be the several following kinds: a) Index Problem

Because of the error in the process of surveying, statistics and computation, the occupied and removed index in kind may be missed out, without entry and wrongly entered to affect resettled ethnic minorities' benefits. When such problems happen, the affected people through village committee can report to City project Office in oral or written form. After processed by City resettlement Office, the problems should be submitted to City project Office and supervision unit. Under the leadership of City project Office, organize professional personnel to verify on the spot, sign and issue disposal opinions, ratify and register the missed out item, wrongly entered or missed out index in kind and compensate according to the standard. b) Compensation Standard

A number of resettled ethnic minorities might have concerns on the compensation could not meet rehabilitation needs due to lack clear understanding about national resettlement policies and compensation. Prior to implementation of resettlement of ethnic minorities, the design personnel should cooperate with all levels of government and resettlement office, do the technical explanation, explain national resettlement policies and computation process of compensation standard in order to make resettled ethnic minorities understand that compensation standard is compiled according to the national laws and regulations document, which can ensure resettled ethnic minorities move out, live comfortably, develop so as to release their misgiving. c) Funds

In the construction process, due to slow allocation of resettlement funds, houses building, and economic rehabilitation of resettled ethnic minorities might be affected. Such questions require managers of implementation of resettlement control funds, schedule and quality to ensure resettlement funds can be used effectively as designated. The resettlement fund allocation should be in accordance with the schedule every month and resettlement of ethnic minorities proceeds according to the schedule.

45 (2) Appeal Channel and Procedure

Ethnic minorities enjoy rights and obligations, which are endowed by constitution and law. The existing laws and codes of our nation can guarantee ethnic minorities‟ lawful rights are not violated. Appeal until getting it, if the lawful rights and interests are violated. a) Appeal Channel Table 5-1. Complaint Office (including ethnic minority development and resettlement) is set in county, city and province of and can investigate and deal with general appeal question of ethnic minorities; Table 5-2. Establish all levels of local ethnic minority development setup according to the law, every lever has the authority to supervise the lower level from province, city to county and can accept appeal case in the way of ethnic minority development; Table 5-3. Self-governed ethnic minority development monitoring setup works according to relative regulations of nation, is responsible for maintaining ethnic minorities' lawful rights and interests. The appeal problems of the violation of the rights of ethnic minorities can also be accepted and reflected; Table 5-4. The violation laws and discipline case relating to ethnic minorities' appeal can be accepted in the law departments such as administrative supervision, auditing, discipline inspection, judiciary and prosecutorial department. b) Appeal Procedure

If any ethnic minority does not agree with EMDP and resettlement plan, he/she can reflect to village committee (residential committee), which could consult with local ethnic minority development office and/or local resettlement office directly, or appeal to superior ethnic minority development office and/or superior resettlement office in oral form or written form. After superior ethnic minority development office and/or superior resettlement office accept the appeal, keep records and consult with village committee and local ethnic minority development office and/or local resettlement office within 10 days. If the contradiction and dispute cannot be solved, in accordance with appeal channel, village committee can appeal to administrative setups step by step such as project office, ethnic minority development/resettlement management setup, ethnic minority development/resettlement monitoring setup, complaint office, administrative supervision, disciplinary inspection and procuratorial department etc.) According to Administrative Procedure Law of People‟s Republic of China. If ethnic minorities are still not satisfactory, appeal to people‟s court directly. Ethnic minority development office and/or resettlement office are responsible for keeping records of all appeal problems and solving process and keeps in the archives.

F. Monitoring and Evaluation（M&E）

The implementation of monitoring and elevation will ensure the EMDP can be rationally executed and the target can be fulfilled, especially catering for the target of ADB‟s Indigenous Policy. The process of internal and external monitoring and evaluation will assess on the property of stakeholders and also evaluate if relevant measures have been put into force and any effect has been achieved, the ethnic minority people have got equitable and impartial benefits from the project , and their culture and custom have been taken into

46 consideration.

Prior to the implementation of project activities, the baseline survey has been carried out and the survey covers ethnicity, poverty degree and people‟s livelihood. The subsequent monitoring and elevation on EMDP will use these baseline data to weigh the results and impacts brought by the project. When the project is completed, the implementation quality of measures in relation to EMDP will be measured through the evaluation so as to assess the impact of the project on ethnic minorities.

The monitoring and evaluation content of EMDP will include：

(i) Collect data and information for determining the general impacts and project impacts, including the qualitative information for describing the change of ethnic minority residents and communities;

(ii) Assess on the nature of ethnic minority stakeholders, if necessary, the participation methods and channels can be taken consideration into the planning and implementation of EMDP activities;

(iii) To evaluate that if the negative impacts have been fully mitigated, the ethnic minority residents have got equitable and impartial benefits from the project and their culture and custom have been taken into consideration;

(iv). Analyze and file up the results so as to meet the requirements of the flood management intervention plan in the future;

(v). File up the key measures and processes taken in the project so as to pave the way for other similar projects.

The internal monitoring for EMDP will be made as one part of the whole management system of the project. The PMO will inspect on and evaluate the EMDP implementation, and report important issues to ADB in the form of quarterly report when necessary.

The external monitoring and evaluation will be implemented by the agency of independent property at home and the agency shall be qualified with enough experiences in similar tasks and projects (for example, rural investigation group, and consultation company or research institute). And the external monitoring personnel shall sign an agreement with PPMO of Hunan and they shall take the following responsibilities:

(i) To monitor the social and economic activities of the affected ethnic minority families periodically;

(ii) To implement and participate the evaluation within PA;

(iii) To collect secondary data, namely data in relation to the city, town, township and villages of all levels;

(iv) To formulate the yearly monitoring and evaluation report and submit it to Hunan PPMO and ADB;

(v) To provide LPMO and local government with advices for promoting the implementation of EMDP.

47 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  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.

Jishou 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. Jishou 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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