Guangxi Wuzhou Urban Development Project – Hongling Road Network Project

Resettlement Planning Document

Resettlement Plan Document Stage: Final Project Number: 40642 August 2008

PRC: Guangxi Wuzhou Urban Development Project – Hongling Road Network Project

Prepared by Wuzhou Urban and Rural Construction Planning Design Institute

The resettlement 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.

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN

The Wuzhou Dongtai State Assets Invest and Management Corporation, the implementation agency (IA), together with the assistance of the Wuzhou Urban and Rural Construction Planning Design Institute has prepared this Resettlement Plan (RP) for the Hongling Road Network Component as one of the three components under Guangxi Wuzhou Urban Development Project, which is under application for a loan from the Asian Development Bank (ADB).

The RP fully complies with requirements of the relevant laws, regulations and policies of People’s Republic of China (PRC), Guangxi Zhuang Autonomous Region and Wuzhou Municipal Government (WMG) as well as complies with ADB’s policy on involuntary resettlement.

This RP is based on the feasibility study report (FSR) and measurement and socioeconomic surveys and Wuzhou Project Management Office hereby confirms the content of this RP and will guarantee the land acquisition and resettlement and compensation budget being provided according to the provisions of aforesaid plan.

This RP will be revised and approved by ADB before its implementation when the detailed design is completed.

LI Ningbo, Vice Mayor, Wuzhou City Chair of Wuzhou City ADB Loan Project Leading Group

August 2008

TABLE OF CONTENT

0ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN 372H

1LISTH OF ACRONYMS AND MEASURES 385H EXECUTIVE SUMMARY………………………………………..……………………………………………………….5

2I.H INTRODUCTION 399H

31.1H Background 409H

41.2H Description of the Project 419H

51.3H LAR Impacts of the Project 4212H

6II.H IMPACT OF LAND ACQUISITION AND RESETTLEMENT 4316H

72.1H Measures Taken to Avoid or Minimize LAR Impacts 4416H

82.2H Methods of LAR Impact Assessment 4516H

92.3H Scope of LAR Impacts 4617H

III SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION………………………..31

103.1H Socioeconomic Profile of Wuzhou City 4731H

113.2H Socioeconomic Profile of the Affected Area and APs 4832H

12IV.H PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE 4941H

134.1H Public Participation Strategy 5041H

144.2H Methods and Measures of Public Participation 5141H

154.3H Public Participation during RP Preparation 5241H

164.4H Women’s Participation 5342H

174.5H Information Disclosure 5442H

184.6H Public Participation Plan during RP Implementation 5543H

19V.H APPEALS AND GRIEVANCE PROCEDURES 5645H

20VI.H LEGAL FRAMEWORK AND POLICIES 5746H

216.1H Applicable LAR Laws, Regulations and Policies 5846H

226.2H ADB’s Involuntary Resettlement Policies 5946H

236.3H Related Laws and Regulation of PRC 6048H

246.4H Gaps between ADB and Chinese Policies 6153H

256.5H Compensation and Rehabilitation Plan 6263H

26IX.H COST ESTIMATES 6382H

27X.H LAR IMPLEMENTATION SCHEDULE 6488H

2810.1H Principles 6588H

2910.2H LAR Implementation Schedule 6688H

30XI.H INSTITUTIONAL FRAMEWORK 6792H

3111.1H Project Resettlement Organizational Set-up 6892H

3211.2H Responsibilities 6994H

3311.3H Institutional Capacity Strengthening 7096H

XII. MONITORING AND EVALUATION………………………………………………………..…………….98

3412.1H Internal Monitoring 7198H

3512.2H External Monitoring and Evaluation 7299H

3612.3H Reporting Requirements 73101H

LIST OF ACRONYMS AND MEASURES

ADB Asian Development Bank AF Affected Families AP Affected Person CNY Chinese Yuan CPC Construction and Planning Committee dia. Diameter DI Design Institute DMS Detailed Measurement Survey EA Executing Agency F Females GDP Gross Domestic Product FSR Feasibility Study Report Ha Hectare HHs Households WMG Wuzhou Municipal Government WDSAIMC Wuzhou Dongtai State Assets Investment and Management Corporation IA Implementing Agency IMA Independent Monitoring Agency LAR Land Acquisition and Resettlement LRB Land Resources Bureau M Males M&E Monitoring and Evaluation MLG Minimum Living Guarantee MRM Management Review Meeting PLG Project Leading Group PMO Project Management Office PPTA Project Preparatory Technical Assistance PRC Peoples Republic of China RCs Resident Committees RIB Resettlement Information Booklet RO Resettlement Office ROW Right of Way RP Resettlement Plan ToR Terms of Reference US$ United States Dollar WF Women’s Federation WHDAO Wuzhou House Demolishment Administration Office WPMO Wuzhou Project Management Office WLRB Wuzhou Land Resource Bureau WMG Wuzhou Municipal Government WURCPDI Wuzhou Urban and Rural Construction Planning & Design Institute km2 Square Kilometer % Percentage ≤ Less than or equal to ≥ Greater than or equal to # Number mu Chinese area measure for land, 1mu = 1/15 ha (1 ha = 15 mu) Chinese currency Yuan CNY 1 Yuan = 1/7.3 $US ($US1=CNY 7.3)

Executive Summary

A. Description of the Project and LAR Impacts

Hongling Road Network is one of the three components under Guangxi Wuzhou Urban Development Project, which is located in Hongling Area, Changzhou District of Wuzhou City. Currently, the residents of the Hongling Development Area do not have convenient transportation system, which constraints the economic development in the Area. This is due to the historical reason that the investment for urban construction in Wuzhou City is low and basic infrastructure lags behind, which causes unreasonable layout of the network structure, unclear function of the roads, and the rate of road coverage area and average road area per capita is much lower than the similar urban cities of the advanced countries. With the fast economic development in Wuzhou City, the city is becoming the industrial processing base, import and export warehouse and cargo transit base, and economic and logistics center, with rapid development of service and tertiary industry. However, the urban road network can not meet the development pace of the city. Therefore, it is necessary to enlarge the scale and expand the space of urban development to strengthen the position of urban competition for Wuzhou City.

Moreover, the urban development in Wuzhou City is limited by less land and more mountains and over-condensed population in the urban districts. Some streets and residents are constructed at the lower water level sections and suffer from the flooding during the rainy season. Some houses are built at the foot of hill or hillside. When it is raining or having heavy rains, it is easy to involve slope collapse, landslides, mud-rock flow and other geological disasters. It causes severe impacts on the safety of people’s life and property. In order to solve the problems of geohazard disaster and move the residents out of the lower water level areas, over-condensed population issues of the old urban district, and smooth the growing urban traffic congestion, Wuzhou Municipal Government (MWG) has proposed the construction of the Hongling Road Network Project as part of the Wuzhou urban development strategies and also to develop geohazard free land and infrastructure to support long term economic growth of the city.

The construction of the Project will acquire 2,104 mu state- and collective-owned land permanently in Hongling Area and Sanlong Area under Xinglong Administration Office of Changzhou District, with two villages and 862 rural households or 3,221 persons to be affected. Of the total acquired land, 272 mu or 11.37% are farmland and 1,832 mu are non-farmland. A total of 289 residential households or 1,374 persons who are affected by permanent land acquisition will also be relocated as a result of the residential structure demolishment for the 1 construction of Hongling Road Network Component0 F . The residential houses to be demolished totals at 57,187.13 m2. Additional 338.05 mu land will be acquired and 5,612.01 m2 of non- residential structure will be demolished with 10 state-owned institutions and 10 private-owned enterprises, or 635 employees to be affected. In addition, associated productive assets, ground attachments, and basic infrastructures and special facilities will be removed due to the Project construction.

B. Resettlement Principles and Entitlements

The resettlement principles established for the Project are: (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible; (ii) All people residing, or making a

1 The total number of 289 households or 1,374 persons to be relocated is included in the number of households and APs to be affected by permanent land acquisition.

living within the areas acquired for the Project prior to a formally recognized cut-off date should be considered as affected people (AP). They should receive compensation for all losses, including assets and livelihoods regardless of land tenure and property right status, and should be entitled to rehabilitation assistance; (iii) compensation and entitlements provided are based on market value or replacement value and must be adequate to allow those affected to at least maintain their pre-project standard of living, with the prospect of improvement; (iv) a preferential policy will be provided to vulnerable groups in such things as compensation, minimum living guarantee (MLG), employment and assistance in relocation, if there any vulnerable groups to be identified during LAR implementation process; (v) all APs are adequately informed on eligibility for compensation, compensation standards, livelihood and income restoration plans, and project timing; (vi) timely payment of compensation to APs; (vii) no land acquisition, demolishment or dispossession of assets will take place prior to satisfactory compensation of APs; (viii) resettlement costs will be included as part of Project costs; and (ix) close monitoring and timely actions will be carried out to identify and resolve any problems.

C. Public Participation and Grievance

Public consultation has been the key for the preparation of the RP. From December 2007 to June 2008, series consultation activities were carried out with the APs, VCs, institutions and enterprises, and other project stakeholders. APs have participated in the preparation of the RP through the measurement and socioeconomic surveys, and community meetings. Their concerns and comments have been integrated into the RP. Further consultations will be held in the future. A grievance procedure has been established for the APs to redress their resettlement issues, including five channels: (i) VCs or ROs, (ii) district government; iii) WPMO, WLRB or WHDAO, iv) Provincial LRB or HDAO, and (v) by taking legal action to the people’s court.

D. Resettlement and Livelihood Rehabilitation

For people losing houses, there are three resettlement options: i) cash plus replacement house at property rights exchange; and ii) cash compensation. The PMO, IA, ROs, and local governments will provide necessary assistance for relocation during resettlement implementation. The measures for economic rehabilitation include: (i) provision of employment opportunities during the project construction and operational phases; (ii) provision of social insurance; (iii) non-agricultural production, including development of self-employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment and catering services); (iv) provision of technical training to the APs to increase their skills to be employed in other institutions, enterprises and businesses. Relocated institutions and enterprises will be provided with the options of compensation and resettlement, including relocation allowance and compensation for the loss of production and business stoppage and the loss of working days. The same institutions and enterprises will reemploy the affected employees, and no job loss is expected.

E. Institutional Arrangement

PMO and IA will have at least four and 40 full-time staff responsible for land acquisition and resettlement. The staff from the resettlement office of the IA will take the lead responsibility for coordinating the planning, implementation, financing, and monitoring of land acquisition and resettlement by working closely with the VCs, district government, land resource bureau, house demolishment administration office, and other organizations involved in implementation of the resettlement program, and will be responsible for supervision and monitoring of resettlement. A

training program will be organized for the resettlement officers by the IMA engaged by the PMO.

F. Cost and Schedule

The preliminary cost estimate for the LAR program is about CNY 255.4 million, equivalent to US$ 36.49 million in 2008 prices, including contingencies. The LAR is scheduled to begin with the construction of resettlement area within the affected Longping Village from January 2009 and complete in December 2012. Civil works can not be started before compensation is paid to APs in full in accordance with recently promulgated State Council Decree #31.

G. Monitoring and Evaluation

Internal and external monitoring of RP implementation will be conducted. Internal supervision and monitoring will be done by IA and ROs to ensure compliance with the provisions of the RP. External M&E will be carried out by IMA under contract to the PMO. External monitoring reports will be directly submitted by the IMA in a timely manner to IA, PMO and ADB. The first one should be submitted by June, 2009.

I. INTRODUCTION

1.1 Background

1.2 Description of the Project

Hongling Road Network Project will construct a 34.1-km-long urban road network with the associated water supply pipelines, drainage and sewage pipelines, lighting system, traffic control facilities, and green areas for the development of Hongling, a new urban area on the north bank of Xunjiang River, which will help keep the residents away from the flood and geological hazard prone areas in the old city centers. Figure 1-1 and Figure 1-2 provide the location map and layout of the Hongling Road Network Project, respectively .

Figure 1-1 Location Map of Hongling Road Network Project in Wuzhou

(Zaochong New Community Site)

Pingminchong Geohazard Resettlement + Prevention

Hongling Road Network

Xijiang Fourth Bridge

South Bank Road Network

Figure 1-2 Layout of Hongling Road Network Project

Layout of Hongling Road Network

1.3 LAR Impacts of the Project

The Project affected Hongling Area is located in Changzhou District. It is adjacent to the Luozhan railway at the north, Pinglang road at the east, Longping and Longhua areas at the west, and Xunjiang at the south, which is 2.8 kilometres away from the Wuzhou Municipal Government, and 3.5 kilometres away from airport. According to the urban development master plan of Wuzhou City, Hongling Area is planned to be built into leisure district combining commerce, residence, trade and business functions. In Hongling, the total land area is 690.7 ha (10,360.5 mu). The land use is mainly hilly land, fish pond, wasteland and villages. The land surrounding the railway station and bus station totaled at 2,382.5 mu which will not be acquired and reserved for land transfer by Wuzhou Land Reserve Center (WLRC). The total area of land for Land Block A, B, C, and D in Hongling Area is 7,978 mu, including 2,297 mu of protected wood land, condensed rural house plot and already transferred land which will not be acquired and reserved by the WLRC also. As a result, the total land area for urban development in Hongling Area is 5,681 mu which will be acquired and reserved by the WLRC to be auctioned to private parties or companies later, of which 1,641 mu is collective land owned by Longxin Village and 4,040 mu originally collective land which was acquired and reserved by WLRC from 1997 to 2000 and now have been converted into state land. All land use certificates for the 4,040 mu of land was obtained between 2001 and 2002. Of the total 4,040 state-owned land acquired between 1997 and 2000, 1,644 mu is the road and reserve land and the remaining 2,396 mu was used by 15 institutions and 23 enterprises after land acquisition. Table 1-1 provides the existing land use of Hongling Area.

Table 1-1 Existing Land-use Status of Hongling Area Land Area Type of Land Remarks (mu) Of the total 5,681 mu land for urban development in Hongling Area Total Area of Land to Be have been or will acquired and reserved by the WLRC for public Acquired and Reserved in auction to private parties or companies later, 4,040 mu originally 5,681 Hongling Area for Urban collective land were acquired and reserved by WLRC from 1997 to Development 2000 and now have been converted into state land, and 1,641 mu is collective land owned by Longxin Village. State-owned Land 4,040 The 4,040 mu of state-owned land was originally collective land which Road and Reserve Land 1,644 was acquired and reserved by WLRC from 1997 to 2000. Now the land has already been converted into state land. Based on discussion with MWG, Wuzhou Land Resource Bureau and private developers, there is no issue involved up to date for the land acquired and houses demolished between 1997 and 2000. Due diligence has been carried Enterprise & Institution out by WURCPDI and PPTA Consultants to the best extent as 2,396 Land possible. It should be noted that due to the fatc that the land was acquired and houses were demolished at least more than 8 years ago and most of the APs have moved out the area to Guangzhou as migrant labors for higher income, it is difficult to provide detailed information for LAR before. Collective Land Of the 1,641 mu collective-owned land in Longxin Village, 435.56 mu 1,641 (Longxin Village) will be acquired for Hongling Road Network Project.

Under the Component of Hongling Road Network, the physical construction will acquire 2,014 mu state- and collective-owned land in Hongling Area and Sanlong Area permanently, including 1,288.44 mu from the 4,040 mu state-owned land which was acquired between 1997 and 2000 (including 178.72 mu are currently under the ownership of 10 institutions and 159.33 mu under the ownership of 10 enterprise, and 950.39 mu as road and reserve land use) and 815.56 mu of collective-owned land from two villages, of which 436.56 mu from Longxin Village of Hongling

Area, and 379 mu from Longping Village of Sanlong Area. Of the total acquired land, 272 mu or 11.37% are farmland and 1,832 mu are non-farmland.

Table 1-2 Permanent Land Acquisition Within and Beyond ROW for Hongling Road Network Project Within ROW Beyond ROW3 State-owned Land (mu)1 Collective Land (mu) Total Collective Road & Institution & Longxin Longping Area Land (mu) LA Subtotal Reserve Enterprise Subtotal Village2 Village (mu) Land Land 1,288.44 950.39 338.05 815.56 436.56 379 2,104 1,204.44 AHs (no.) 0 0 0 862 534 328 - 534 APs (No.) 0 0 0 3,221 1,793 1,428 - 1,428 Note: 1 The state-owned land to be acquired for the Hongling Road Network Project will be acquired from the above mentioned 4,040 mu state-owned land acquired between 1997 and 2000; and, 2 The collective land to be acquired in Longxin Village is within ROW for the construction of Hongling Road Network Project. 3 The collective land beyond ROW is within Longxin Village which will be acquired for other urban development project later.

On the land to be acquired within ROW for the road network project, 57,187.13 m2 of the residential structure will be demolished in Lognxin Village of Hongling Area, including 10,646.94 m2 frame structure, 33,050.29 m2 brick-concrete structure, 9,352.06 m2 brick-wood structure, and 4,137.84 m2 simple structure. In addition, 5,612.01 m2 of non-residential structures owned by 10 institutions and 10 enterprises will be demolished, with 338.05 mu of permanent land acquisition. Beyond ROW, a total of 66,909.13 m2 of residential structures will be demolished. None of institutions, enterprises and businesses will be affected. In addition, associated productive assets, ground attachments, and basic infrastructures and special facilities will be removed due to the Project construction. No indigenous people or ethnic minorities will be adversely affected by the Project.

In total, the permanent land acquisition within ROW will affect 862 rural households or 3,221 persons to be affected, including 534 households or 1,793 persons in Longxin Village and 328 households or 1,428 persons in Longping Village. Of which, 289 households or 1,374 persons 2 will also be relocated in Longxin Village1 F , including 254 households with house certificates and 35 households without house certificates. In addition, 20 institutions and enterprises with 635 employees (10 institutions with 293 employees and 10 enterprises with 342 employees) will be affected also by permanent land acquisition and non-residential structure demolishment. In total, 3,856 persons will be affected by permanent land acquisition and structure demolishment. Beyond ROW, the permanent land acquisition will affect 534 households or 1,428 persons will be affected by permanent land acquisition, and 353 households or 1,673 persons will be

2 The total number of 289 households or 1,374 persons to be relocated is included in the number of households and APs to be affected by permanent land acquisition within ROW.

affected by house demolishment.

1.4 Preparation of RP

In line with the ADB’s Involuntary Resettlement Policy and the relevant laws, regulations and guidelines issued by the governments of People’s Republic of China, Guangxi Zhuang Autonomous Region and Wuzhou City, the RP has been prepared by Wuzhou Urban and Rural Construction Planning and Design Institute (WURCPDI) on behalf of Wuzhou Dongtai State Assets Investment and Management Corporation (WDSAIMC). The RP will be reviewed and approved by Wuzhou Municipal Government (WMG) and ADB.

The RP preparation is based on the following relevant project documents and legal documents, and the results of public participation and consultations.

(i) Design Basis:

• Feasibility Study Reports; • Statistic Yearbook of Wuzhou City in 2007; • Wuzhou Urban Development Master Plan; and, • “Eleventh-Five Year Plan” of Wuzhou City.

(ii) Legal and Policy Basis

• Land Administration Law of the PRC, amended in 2004; • Management Law of Urban Real Estate of PRC, 1994; • Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law, 2001; • Urban Housing Demolition Management Regulations of the PRC issued in 2001; • Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003; • Guidelines for Valuation on Urban House Demolishment of PRC; 2004; • Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region; • Wuzhou Municipal Government Approval on Relocation and Compensation Scheme of Hongling Area Construction, 2003; • Wuzhou Municipal LRB Approval on Compensation Standard of Land Acquisition of Hongling Development Area, 2008; • Wuzhou Implementation Method on State-owned Land Reserve (Provisional), 2003; • ADB’s Involuntary Resettlement Policy, 1995; • Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; • Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and, • OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006.

(iii) Public Participation and Community Consultation Activities

• Visits to the Project affected areas; • Consultation meetings with district government and village leaders, representatives, and APs between December 2007 and June, 2008; • Sample socioeconomic survey of affected households in June 2008;

• Feedback from the distribution of draft Chinese RP to the affected communities on June 28, 2008; • Land acquisition and resettlement survey information between December 2007 and June, 2008; • Focus group discussion during the ADB PPTA phase in June, 2008; and, • Consultation workshops on environment and resettlement between January and June, 2008.

The goal of RP preparation includes: i) Through optimal engineering design to avoid or reduce the impacts of land acquisition and resettlement; ii) Resettlement Plan is based on the land acquisition and resettlement indexes and the compensation standard, and the goal is to increase the living standards of the APs, at least not worse-off; iii) Development resettlement is promoted; iv) APs are encouraged to participate in the Resettlement Plan preparation, in particular women; and v) Women’s rights and interests should be fully taken into consideration of the Project.

II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT

2.1 Measures Taken to Avoid or Minimize LAR Impacts

To avoid or reduce land requisition and resettlement (LAR) impacts to the minimum, alternatives have been carefully reviewed and the optimal option has been adopted for the Hongling Road Network. By taking into consideration of reducing land acquisition and resettlement impacts, and the life and property security of residents in Hongling Area, the mitigation measures to reduce the LAR impacts have been proposed: 1) to strictly control the scope of land acquisition through coordinated surveying and mapping; 2) for enterprises to be partially affected, only the affected part will be demolished and reconstructed in the nearest site; 3) avoid the intensive house plot, forest, institutions and enterprises as much as possible.. As a result, Option II has been selected as the option for the Project. Table 2-1 is the alternative comparison of “Option I” and “Option II” to minimize LAR impacts on collective-owned land within ROW. For Longxin Village, at the time when the land beyond ROW to be acquired for the urban development projects, the farmers in the village will lose all farmland, first for Hongling Road Network Project and then for urban development. However, the income rehabilitation measures have taken all APs into consideration. For those APs who would lose land in Sanlong Area, they will not lose their farmland twice. In addition, three alternatives under the Wuzhou Urban Development Master Plan have been considered: i) South Bank; ii) Sanlong Area; and iii) Hongling Area. The Hongling Area is designated as the new development area by taking the following factors into consideration: i) Hongling is adjacent with the downtown of the city and most of the land have already been acquired and converted into construction land many years ago, only the land of Hongxin Village, including 427.44 mu of farmland has not been acquired yet; ii) The development of Sanlong Area will involve 8,985 mu of farmland to be acquired, and the area is more far away from the downtown; and iii) South Bank will also involve a large area of farmland with a total of 1,500 mu to be acquired for the urban development. In addition, it is difficult and more costly to acquire land in South Bank as it involves relocation of national football training center and military base. Thus, Hongling is selected as the area for urban development which will involved less farmland than other two alternatives.

Table 2-1 Alternatives to Minimize LAR and Scope of LAR Impacts on Collective Land within ROW

Before the Measures (Option I) After the Measures (Option II) House Land House Land Village AHs APs APs Demolishment Acquisition AHs (No.) Demolishment Acquisition (No.) (No.) (No.) (m2) (mu) (m2) (mu) Longxin Village 782 2,630 95,742.13 1,826 534 57,187.13 436.56 1,793 Longping Village 513 2,240 2,640 560 328 0 379 1,428 Total 1,295 4,870 98,382.13 2,386 862 57,187.13 815.56 3,221

2.2 Methods of LAR Impact Assessment

The physical identification of impacts are mainly relies on the statistical data obtained from the relevant government organizations, questionnaires, measurement survey, and discussion with APs during field investigation, site visits, meetings, individual interviews, etc.

Between December 2007 and June 2008, under the supervision of PMO and IA, the district government and village committees (VCs) carried out full-scale property and socioeconomic surveys to obtain basic data and prepare the RP. The survey is carried out to clarify the quantity and number of the properties affected by the Project. This has provided basic data for the scope of the Project impacts, the calculation of losses caused by LAR, socioeconomic impacts, planning on livelihood restoration of the APs, budget, and monitoring and evaluation.

The Project will affect land, houses, institutions and enterprises, auxiliaries, and ground attachments, including basic infrastructures and special facilities. The quantity and category of the acquired lands and demolished structures were surveyed with the participation of the APs. Village committees and representatives of the villagers were consulted on compensation standards and resettlement plan for land acquisition and resettlement.

2.3 Scope of LAR Impacts

2.3.1 Summary of Land Acquisition

The scope of the Project impacts is mainly determined by the measurement survey on the basis of the FSR and detailed urban development master plan of Hongling Area. According to identified impact, project construction need to acquire 815.56 mu collective-owned land, of which Longxin Village is 436.56 mu, including 25 mu of paddy land, 60 mu of rural house-site, 45 mu of dry land, 56 mu of vegetable land, 101 mu of fish pond, 149.56 mu of other types of land; and Longping Village is 379 mu, including 15 mu of paddy land, 12 mu of rural house- site, 78 mu of dry land, 53 mu of vegetable land, 31 mu of fish pond, 190 mu of other types of land. The permanent land acquisition for state-owned land is 1,288.44 mu, including 178.72 mu land of institutions, 159.33 mu land of enterprises, 950.39 mu of road and reserve land. The land was acquired between 1997 and 2000. Due diligence has been carried out by the DI and PPTA Consultants to the best extent as possible. It should be noted that due to the land acquisition and resettlement occurred at least more than 8 years and most of the APs have moved out the area to Guangzhou for migrant labors for higher income, it is difficult to provide detailed information for the land acquired and resettlement before. In total, the Project permanent land acquisition is 2,104 mu of state- and collective-owned land.

In addition to the land to be acquired by Hongling Road Network Project, the remaining 1,204.44 mu of collective-owned land in Longxin Village, including 64 mu paddy land, 408 mu dryland, 95 mu vegetable land, 94 mu orchard land, 25 mu fish pond, 441 mu wood land, 23 mu house plot, 29.44 mu village road, and 25 mu river bottom land and other types of land, will be acquired and reserved by WLRC for other urban development projects in Hongling Area. As a result, all land owned by Longxin Village will be completely acquired eventually. Therefore, in the RP, the income rehabilitation measures have taken all APs into consideration.

The construction of Hongling Road Network Project will affect 534 households with 1,793 people in Longxin Village of Hongling Area by permanent land acquisition, of which, 289 households with 1,374 people will be relocated with demolishment of 57,187.13 m2 of residential houses (including 10,646.94 m2 of frame structures, 33,050.29 m2 of brick-concrete structures, 9,352.06 m2 of brick-wood structures, and 4,137.84 m2 of simple structures). The permanent land acquisition will also affect 328 households or 1,428 persons in Longping Village of Sanlong Area. As Longping Village is not like Longxin Village to completely lose all farmland, the income rehabilitation measures only take the loss of land due to the construction of Hongling Road Network Project into consideration. In total 289 households will be relocated, of which 254 households have house certificates and 35 households without house certificates.

In addition, the construction of Hongling Road Network Project will acquire 338.05 mu of land and demolish 5,612.01 m2 non-residential structures from 20 institutions and enterprises. Demolishment includes structures of institutions and enterprises used for business and productive purposes, productive assets and ground attachments. A total of 635 employees, including 293 employees from 10 institutions and 342 employees from 10 enterprises will be affected.

As a result, the construction of Hongling Road Network Project will affect 862 rural households or 3,856 persons (including 635 employees).

In addition, associated productive assets, ground attachments, and basic infrastructures and facilities will be removed due to the Project construction. Table 2-2 provides the summary of the land acquisition and resettlement impacts identified.

Table 2-2 Summary Land Acquisition and Resettlement Impacts

HHs and Popu. HHs and Popu. Residential House Institution Structure Enterprise Structure Acquisition Affected by Administrative Jurisdiction Permanent Land Acquisition Affected by Land Demolishment Demolishment Demolishment of Road Structure Acquisition and Demolishment Total Reserve Total Collective Total Land Affected Affected Affected Affected State-owned Affected APs APs Land APs Land Aps Aps District Street commitee Area Land Land Acquisition Units Units HHs HHs Land (mu) HH (No.) (No.) (No.) Area (No.) (mu) (No.) (No.) (mu) (mu) Area (m2) (mu (No.) (No.) (No.) (No.) (m2) Within ROW Longxin 1,725 1,288.44 436.56 57,187.13 289 1,374 178.72 10 293 159.33 10 341 950.39 289 1,374 534 1,793 Changzhou Xinglong Village District Office Longping 379 0 379 0 0 0 0 0 0 0 0 0 0 0 0 328 1,428 Village Subtotal 2,104 1,288.44 815.56 57,187.13 289 1,374 178.72 10 293 159.33 10 341 950.39 289 1,374 862 3,221 Beyond ROW Changzhou Xinglong Longxin 1,204.44 545 659.44 9,722.00 64 299 0 0 0 0 0 0 0 64 299 534 1,428 District Office Village Subtotal 1,204.44 545 659.44 9,722.00 64 299 0 0 0 0 0 0 0 64 299 534 1,428

TOTAL 3,308.44 1,833.44 1,475.00 66,909.13 353 1,673 178.72 10 293 159.33 10 341` 950.39 353 1,673 1,396 4,649

2.3.2 LAR Impacts by Type of Losses

2.3.2.1 Permanent Land Acquisition

The Project construction will acquire 815.56 mu of collective land, of which 436.56 mu,(including 25 mu of paddy land, 60 mu of rural house-site, 45 mu of dryland, 56 mu of vegetable land, 101 mu of fish pond, 149.56 mu of other types of land) from Longxin Village of Hongling Area, and 379 mu (including 15 mu of paddy land, 12 mu of rural house-site, 78 mu of dry land, 53 mu of vegetable land, 31 mu of fish pond, 190 mu of other types of land) from Longping Village of Sanlong Area. The Project will also acquire 1,288.44 mu state-owned land (including 178.72 mu land of the institutions, 159.33 mu land of enterprise, 502.90 mu of highway and reserved land). The total project permanent acquisition of state- and collective-owned land totals at 2,104 mu. For other urban development projects of Hongling Area, a total of 1,204.44 mu of land will be acquired, including 545 state-owned land (75 mu house plot, 421 mu wood land, 35 mu village road, and 14 mu river bottom land) and 659.44 mu of collective land (36 mu paddy land, 33.44 mu dryland, 232 mu vegetable land, 69 mu fish pond, 289 mu orchard land). Table 2-3 provides the impacts of permanent land acquisition within and beyond ROW.

Table 2-3 Impacts of Permanent Land Acquisition within and beyond ROW

Permament Land Acquisition River Paddy Fish Wood Orchard Village House Dryland Vegetable Bottom Total Area AHs APs Land Pond Land Land Road Plot (mu) (mu) Land (mu) Land (mu) (No.) (No.) (mu) (mu) (mu) (mu) (mu) (mu) Collective-Owned Land Longxin Village 25 60 45 56 101 69 33 29.56 18 436.56 534 1,793 HHs (No.) 534 289 534 231 387 235 178 86 534 APs (No.) 1,793 1,374 1,793 1,097 1,839 1,117 846 405 1,793 Longping Village 15 12 78 53 31 78 69 13.00 30 379.00 328 HHs (No.) 328 328 214 123 285 294 112 328 APs (No.) 1,428 1,428 924 531 1,230 1,270 484 1,428 Within Subtotal of Land 40 72 123 109 132 147 102 42.56 48 815.56 ROW HHs (No.) 862 289 862 445 510 520 472 0 198 APs (No.) 3,221 1,374 3,221 2,021 2,370 2,347 2,116 0 889 State-Owned Land* Institutions 15 24 25 28 23 26.72 19 5 13 178.72 293 Enterprises 17 15 20 26 31.03 28 0 7 15.3 159.33 342 Road & Reserve 8 33 78 155 77.97 192.28 183 130.56 92.58 950.39 Land Subtotal of Land 40 72 123 209 132 247 202 142.56 120.88 1,288.44 3,856

Collective-Owned Land Beyond Longxin Village 36 75 33.44 232 69 421 289 35 14 1,204.44 534 1,428 ROW Total Area 36 75 33.44 232 69 421 289 35 14 1,204.44 534 1,428 Note: * Land was acquired between 1997 and 2000.

No temporary land occupation will be involved for the construction of Hongling Road Network as the equipment and materials storage and access road will be used within the area of permanent land acquisition.

2.3.2.2 Residential House Demolishment and Associated Auxiliaries

Within ROW of Hongling Road Network, in total, 57,187.13 m2 of residential house will be demolished in Longxin Village by the construction of the Project, including 10,646.94 m2 of frame structure, 33,050.29 m2 of brick-concrete structure, 9,352.06 m2 of brick–wood structure, 4,137.84 m2 of simple structure. For the relocated residential households, 254 households with 52,202.27 m2 structures have house certificates and 35 households with 4,984.86 m2 structures without house certificates. Beyond ROW, 64 households or 299 persons will be relocated, with 66,909.13 m2 of residential structures to be demolished. Some associated attachments of residential houses, auxiliaries, and infrastructures and special facilities will also be affected. Relocation of rural residential houses and attachments within and beyond ROW is presented Table 2-3. The area of house size ranges from 50 m2 to over 100 m2 (see Table 2-4 for the range of residential house demolishment within and beyond ROW).

Table 2-3 Demolishment of Residential Structures and Associated Auxiliaries within and beyond ROW

Hongling Area Item Unit (Longxin Village) Total Within ROW Beyond ROW Households to Be Relocated No. 289 64 353 Population to Be Relocated No. 1,374 299 1,673 Total Area of Structure Demolition m2 57,187.13 9,722 66,909.13 Frame m2 10,646.94 1,945.4 12,592.34 Brick-Concrete m2 33,050.29 5,274.13 38,324.42 Brick-Wood m2 9,352.06 1,562.49 10,914.55 Simple m2 4,137.84 939.98 5,077.82 Structures With House Certificates m2 52,202.27 Frame m2 9,763.44 AHs (APs) No. 61 (293) Brick-Concrete m2 30,095.64 AHs (APs) No. 131 (625) Brick-Wood m2 8,532.53 AHs (APs) No. 60 (290) Simple m2 3,810.66 AHs (APs) No. 2 (9) Total AHs (APS) No. 254 (1,217) Structures Without House Certificates m2 4,984.86 Frame m2 883.50 AHs (APs) AHs (APs) 4 (18) Brick-Concrete m2 2,954.65 AHs (APs) No. 12 (54) Brick-Wood m2 819.53 AHs (APs) No. 19 (85) Simple m2 327.18 AHs (APs) No. Total AHs (APs) No. 35 (157) Auxiliaries Fence m 920 310 1,230 Kitchen No. 371 64 435 Toilet No. 371 64 435 Coal Gas Set 371 64 435

Hongling Area Item Unit (Longxin Village) Total Within ROW Beyond ROW Internet HH 65 12 77 Aluminum Alloy Window m2 8,050 1,480 9,530 Anti-Theft Net with Steel Structure m2 8,100 1,260 9,360 Stainless Anti-Theft Net m2 8,750 6,154 14,904 Air Conditoner No. 127 22 149 Sunning Ground m2 900 240 1,140 Door No. 86 10 96 Smiple Pig and Chicken Pens m2 2,210 560 2,770 Telephone No. 139 25 64 Ground with Colored Clay Brick m2 6,600 1,540 8,140 Ground with Endurable Wearing Brick m2 9,740 2,870 2,610 Ground with Mosaic Brick m2 3,520 1,350 4,870 Ground with Patterned Brick m2 1,400 480 1,880 External Wall with Mosaic m2 2,300 520 2,820 External Wall with Strip Patterned Brick m2 3,920 390 4,310 Tomb (earth) No. 20

Table 2-4 Range of Residential House Demolishment for AHs within and beyond ROW

Within ROW Beyond ROW Range of Residential Structure Demolishment AHs % AHs % 50 m2 – 60 m2 7 9.34 5 7.81 60 m2 – 70 m2 15 18.69 8 12.50 70 m2 – 80 m2 30 24.22 28 43.75 80 m2 – 100 m2 52 29.76 14 21.87 > 100 m2 185 17.99 9 14.06 Total 289 100.00 64 100.00

2.3.2.2 Non-Residential Structure Demolishment

A total of 10 institutions and 10 enterprises in Longxin Village will be affected, including 338.05 mu of land, 5,612.01 m2 structures, productive assets and attachments. Affected employees of enterprises totals at 635 people (293 people from institutions and 342 people from enterprises). Of the total affected 10 institutions, 3 institutions have only land plot in Longxin Village of Hongling Area without any physical structures constructed on the land. Of the total affected 10 enterprises, 4 enterprises have only land plot in Longxin Village of Hongling Area without any physical structure constructed on the land. For those institutions and enterprises own the land without structures on the land is due to inconvenient transportation condition and slow pace of urban development. The LAR impacts of the institutions and enterprises are presented in Table 2-5. Relocated institutions and enterprises will not be displaced again and the options of compensation and resettlement will be provided. The same institutions and enterprises will reemploy the affected employees, and no job loss is expected. None of the employees will suffer from livelihood and income losses permanently or transitionally, except the loss from a couple of working days or business stoppage during the moving period.

Table 2-5 Affected Institutions and Enterprises

Total Area Structures to Be Demolished Affected Employees Land Production of (m2) (No.) Nature Name of Institutions & Enterprises Acquisition Value Business Remarks Structures Brick- Brick- (mu) Total APs M F (CNY/Year) (m2) concrete Wood Partial demolishment without relocation. Rebuild the Institutions Horticulture Department 5.77 1,500 132.84 132.84 42 32 10 demolished structure attached with original site Partial demolishment without relocation. Rebuild the Greening Engineering Department 3.67 800 93.68 93.68 105 75 30 demolished structure attached with original site Complete demolishment with Driving Practice Yard of Traffic Police 12.12 25.28 25.28 25.28 17 15 2 relocation. Rebuild in another new location Complete demolishment with Wuzhou Funeral House 45.05 3,203.63 3,203.63 3,203.63 15 10 5 relocation. Rebuild in another new location Partial demolishment without relocation. Rebuild the Agricultural Science Institute 10.02 2,100 680 680 49 25 24 demolished structure attached with original site Complete demolishment with Wuzhou Chicken Breeding Farm 52.57 468 468 468 20 14 6 relocation. Rebuild in another new location Cash Compensation Rose Lake Aquaculture Experiment 11.02 680 120.5 120.5 45 25 20 without relocation and Pond reconstruction

Structures to Be Demolished Affected Employees (m2) (No.) No physical structures School of Finance 13.09 0 and attachments on affected ground No physical structures Military Sub-branch 12.78 0 and attachments on affected ground No physical structures Nursery Station 12.63 0 and attachments on affected ground Subtotal 178.72 4,723.93 4,723.93 0 293 196 97 Partial demolishment without relocation. Shareholding Longxin Supply and Marketing Pesticide and Rebuild the 1.22 900 240 240 160 78 82 2,000,000 Company Cooperatives fertilizer sale demolished structure attached with original site Partial demolishment without relocation. Shareholding Rebuild the Animal Production Farm 7.36 1,300 132.4 132.4 20 13 7 1,000,000 Butcher Company demolished structure attached with original site Complete demolishment with Shareholding warehouse of relocation. Rebuild the Timber Storage Farm 0.65 43.11 43.11 43.11 90 65 25 900,000 Company timber demolished structure in another new location Partial demolishment without relocation. Private water Rebuild the Longxin Water Supply Plant 10.4 3,200 146 146 24 13 11 15,000,000 Enterprises treatment demolished structure attached with original site No physical structures Shareholding Telecom Co. 36.96 0 and attachments on Company affected ground

Structures to Be Demolished Affected Employees (m2) (No.) No physical structures Private Bus Co. 33.05 0 and attachments on Enterprises affected ground No physical structures Shareholding Synthetic Sugar Machinery 66.23 0 and attachments on Company Manufacturing Co. affected ground No physical structures Shareholding Sanlian Auto Repair Co. 1.47 0 and attachments on Company affected ground Partial demolishment without relocation. Shareholding Rebuild the Herbal Market 0.47 206 206 35 24 11 Company demolished structure attached with original site Partial demolishment without relocation. Shareholding Rebuild the Maoshan Warehouse 1.52 120.57 120.57 12 6 6 Company demolished structure attached with original site Subtotal 159.33 888.08 386 502.08 341 199 142

2.3.2.3 Affected Households and Population

Some ground attachments, and basic infrastructures and special facilities will be affected also. Table 2-6 are the impacts of affected basic infrastructures and special facilities.

Table 2-6 Affected Basic Infrastructures and Special Facilities Item Unit Standard Quantity 10KV Electric Pole No. 250 Steel Tower No. 13 Overhead Wire and Cable m 23,613 440V Overhead Wire and Cable m 15,400 Electrical Cable m 3×150 mm² 500 380V Electric Pole in Public Transformer No. 145 20 3 30 7 50 4 80 2 100 17 125 2 160 3 180 1 200 15 Transformer (KVA) No. 250 8 315 10 400 10 500 5 630 6 800 4 1000 2 1250 3 1600 4 2500 1 15 mm 29.1 20 mm 675.6 25 mm 76.3 40 mm 24 50 mm 1,978.64 Water Pipe (Pipe Diameter, Millimeter) m 65 mm 65 80 mm 565.6 100 mm 2,447 150 mm 2,427 200 mm 1,263 250 mm 466 300 mm 1,655.8 600 mm 6,089.1 Drainage Pipe (Pipe Diameter, Millimeter) No. 1000 mm 138 1200 mm 819 Communication Cable m 63,500

Item Unit Standard Quantity Communication Optical Cable m 17,800 Optical Cable Line of Cable TV Kilometer Aerial Optical Cable 13.5 Optical Cable Main Line of Cable TV Kilometer Aerial Coaxial Cable 25.15 Distribution Net of Cable TV HH 648

2.3.2.4 Impacts on Vulnerable Groups

Overall, the Hongling Road Network Project within the ROW will acquire land from two villages, including one village involving house demolishment under Xinglong Administration Office of Changzhou District. A total of 862 rural households or 3,856 persons (including 635 employees) will be affected by land acquisition and resettlement, including 534 households or 1,793 persons will be affected by permanent land acquisition in Longxin Village, Hongling Area, and additional 328 households or 1,428 persons will be affected by permanent land acquisition in Longping Village, Sanlong Area. For the demolishment of non-residential houses, 10 institutions with 293 people and 10 enterprises with 342 people from enterprises will also be affected. Other urban development projects in Hongling Area beyond the ROW will acquire land from Longxin Village. A total of 534 households or 1,428 persons will be affected by permanent land acquisition and resettlement, of which 64 households or 299 persons will be relocated due to residential house demolishment.

2.3.2.5 Impacts on Vulnerable Groups

Within ROW, of the total affected households and populations, 32 households or 87 persons will be affected by the construction of Hongling Road Network or 6 % of the total households were identified as vulnerable families. The type and quantity of vulnerable groups is presented in Table 2-7. No minorities will be affected by the Project. Beyond ROW, of the total 64 households, no vulnerable groups are identified.

Table 2-7 Type and Quantity of Affected Vulnerable Groups within ROW

Affected Vulnerable Groups (No.) Longxin Village Longping Village Type of Vulnerable Groups Popu. Popu. HH (No.) HH (No.) (No.) (No.) “Five Guarantees Family”1 7 12 0 0 Household Living under Minimum Live Guarantee (MLG)2 10 35 0 0 Female-Headed Family 15 40 0 0 Total 32 87 0 0 Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/promises; and, 2 Households living under MLG are classified as the poor households.

2.3.3 Impact Analysis

2.3.3.1 Land Loss

The road network project in Hongling Area involves 2,104 mu of land acquisition, including 1,288.44 mu of state-owned land, and 815.56 mu of collective land. Table 2-7 provides the ratio of land loss within ROW for Longxin Village to be affected by Hongling Road Network Project. Before land acquisition, the average land holding per capita is 0.21 mu, after the land

acquisition, the average land holding per capita is 0.12 mu. The percentage of land loss is 45% and the average land loss per capita is 0.09 mu. Table 2-8 provides the ratio of farmland loss by divided families for Longping Village. Before land acquisition, the average land holding per capita is 0.25 mu, after the land acquisition, the average land holding per capita is 0.16 mu. The percentage of land loss is 36% and the average land loss per capita is 0.09 mu.

With the simultaneous implementation of other urban development projects in addition to the Hongling Road Network Project in Hongling Area, all collective land of Longxin Village will be acquired. As a result, the villagers will lose 100% of their farmland. Thus, the land loss analysis for Longxin Village is based on the complete loss of farmland and agricultural income. The analysis of land loss for Longxin and Longping Villages is presented in Table 2-9.

Table 2-7 Ratio of Land Loss for Longxin Village to Be Affected by Hongling Road Network Project

Ratio No. of HH < 10% 165 10% - 20% 173 20% - 30% 75 30% - 40% 42 40% - 50% 47 50% - 60% 16 70% - 80% 11 90% - 100% 5 Total 534 Note: Only the proportion of land to be acquired permanently by the Hongling Road Network Project is taken into account in the table.

Table 2-8 Ratio of Farmland Loss in Longping Village (N = 328)

Level of Loss Family Family Family Family Family Family Family Paddy Land / Farmland No. of Affected > 10 – > 90% to Family of < 10% > 30 - 50% > 50% to 70% > 70% to 90% 100% 30% <100% Freehold Land < 1 mu 221 15 2 0 0 0 0 1 mu - 2 mu 45 25 20 0 0 0 0 > 2 mu – 3mu 0 0 0 0 0 0 0 Subtotal 266 40 22 0 0 0 0 Vegetable Land333 No. of Affected > 10 – > 90% to Family of < 10% > 30 - 50% > 50% to 70% > 70% to 90% 100% 30% <100% Freehold Land < 1 mu 280 48 0 0 0 0 0 1 mu - 2 mu 0 0 0 0 0 0 0 > 2 mu – 3 mu 0 0 0 0 0 0 Subtotal 280 48 0 0 0 0 0 Dryland No. of Affected > 10 – > 90% to Family of <10% > 30 - 50% > 50% to 70% >70% to 90% 100% 30% <100% Freehold Land < 1 mu 127 56 23 0 0 0 0

1 mu - 2 mu 64 31 25 0 0 0 0 > 2 mu – 3mu 0 0 2 0 0 0 0 Subtotal 213 75 40 0 0 0 0

Table 2-9 Analysis of Land Acquisition Impacts No. Longxin Village Longping Village I. Impacts 1 Affected Households (No.) 534 328 2 Affected Rural Population (No.) 1,793 1,428 4 Land Acquisition (mu) 435.56 379.00 5 Per capita farmland (mu) before LA 0.21 0.25 6 Per capita farmland (mu) after LA 0.00 0.16 7 Percentage of land loss (%) 100% 36% 8 Percentage of Income loss (%) 30% 12.6% II. Income resources 9 Agricultral Income 3,402 3,089 - Percentage (%) 30% 35% 10 Second Industry 3,025 1,366 11 Third Industry 4,913 4,370 12 Total Annual Household Income 11,340 8,825 III Percentage of Land Loss by AHs 13 < 10% 213 14 > 10% to 30% 75 15 > 30% to 50% 40 16 > 50% to 70% 0 17 > 70% to 90% 0 18 > 90% to 100% 19 100% 534 0 21 Sototal 534 328 IV Percentage of land loss by APs 22 < 10% 930 23 > 10% to 30% 327 24 > 30% to 50% 171 25 > 50% to 70% 26 > 70% to 90% 27 > 90% to 100% 28 100% 1,793 0 Total 1,793 1,428 Note: 100% permanent land acquisition is taken into account for Longxin Village in tha table.

2.3.3.5 Income Loss Analysis

Longxin villagers: The Hongling Road Network Project in Hongling Area will completely or partially acquire the land of Longxin Village. Currently, the villagers are mainly engaged in farming and animal breeding, seasonable migrant labors, small businesses and working in enterprises in nearest areas of the village. Agricultural income accounts for 30% of their total family income. Paddy rice, sweet potatoes, soy beans, peanuts and corns are major agricultural crops. The average net income from agricultural farming account for CNY3,402 per household in Longxin Village. With the urban development in Hongling Area in addition to the road network project, all land in Longxin Village will be acquired. As a result, the villagers will lose 100% of their farmland and agricultural income, which account for 30% of their total family income.

Longping villagers: The Hongling Road Network Project in Sanlong Area will partially acquire the land of Longping Village. Same as Longxin Village, the villagers are mainly engaged in farming, seasonable migrant labors, small businesses and working in enterprises in nearby areas. Paddy rice, sweet potatoes, soy beans, peanuts and corns are major agricultural crops. The average net income from agricultural farming account for CNY3,089 per household in Longping Village, which is 35% of their total family income. As the result of land loss, the APs will loss 12.6% of their income of their total family income.

III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION

3.1 Socioeconomic Profile of Wuzhou City

Wuzhou is a medium-sized city of Guangxi Zhuang Autonomous Region – one of the twelve less developed western provinces and autonomous regions that are targeted by the Government for support under the National Strategy for Development of the West. It is one of the most convenient corridors to connect with Guangdong, Macau and Hong Kong. With a population of 3.11 million covering a land area of 12,588 km2, Wuzhou Municipality has three urban districts, three counties, and one city at county level under its jurisdiction. In the context of the Project, Wuzhou City refers only to the “city proper” comprising the three urban districts of Wanxiu, Dieshan, and Changzhou. Wuzhou City is a mountainous area of approximately 1,097 km2 with a total population of approximately 489,000 or 149,227 households in 2007, including an urban population of 452,000 and a developed urban area of 32.5 km2. According to the planned goals of the city, it calls for a total urbanized area of 411.2 km2 to serve a population of approximately 683,400.

The economy of Wuzhou City has kept fast and sustainable growth in recent years. In 2007, Wuzhou Municipality’s GDP reached CNY 32.68 billion, representing an increase of 15.7% over 2006. The fiscal revenue amounted to CNY 2.7 billion, or an increased of 17.1% over 2006. The value of exports grew by 10.7% to US$ 322 million. The retail sales of consumer goods amounted to CNY 11.13 billion, or an increase of 13.5% over 2006. In 2007, the average per- capita disposable income for urban residents grew by 20.2% over 2006 to CNY 11,362. The average per-capita net income for farmers grew by 14.5% over 2006 to CNY 3,272. More than 15,900 jobs were newly created in 2007. The registered urban unemployment rate was 3.95% or 0.55% lowered than the government-controlled threshold. The basic infrastructure construction of the city has had further improvement and the urban development has grown rapidly.

Wuzhou is one of the earliest industrial bases in Guangxi Zhuang Autonomous Region. As early in the 1920s, Wuzhou was renowned for its thermal power, matches, soap, battery, machinery, textile, metallurgical, pharmaceutical and chemical industries. Today, Wuzhou’s major industries include textile, chemical, food, machinery, electronics, plastics, tannery, pharmaceutical, garment, ship making, printing and light. In 2007, the industrial output of large-scale enterprises grew by 53.8% over 2006 to CNY 26.95 billion. The total profit of the large-scale enterprises grew by 83.44% to CNY 893 million. The industrial output contributed to 64.6% of the economic growth in Wuzhou. The export-oriented industrial zone covers 6 km2 at present, and is planned to expand to 60 km2. Enterprises in the zone can benefit not only from preferential policies for open coastal cities and western development but also from local policy of income tax reduction and exemption.

With 95,000 ha or 1.425 million mu of farmland, Wuzhou is also an important commodity grain base for Guangxi Zhuang Autonomous Region. Main crops of Wuzhou include rice, sweet potato, corn, legume, wheat, sugarcane, cassava, sericulture, peanut, and gardening products include fruit tree, vegetable and flowers. The suburb of Wuzhou City is mainly engaged in vegetable, aquatic and livestock.

Wuzhou takes pride in: i) being the largest turpentine production base in China; ii) being the largest synthetic gemstone production base in the world; ii) having China’s largest variation of types of bridges; iii) having 2.1 billion cubic meter of granite reserve; iv) having China’s earliest

memorial for Sun Yet-Sen; v) being the largest pet dogs breeding base in Southeast Asia; and vi) being the largest Presbytis francoisi breeding base in Asia. The total employment stands at approximately 190,000 people.

3.2 Socioeconomic Profile of the Affected Area and APs

This survey was undertaken by the Changzhou District Government (CDO), Xinglong Administration Office and Longxin VC under the supervision of PMO and IA in June 2008. Its main objectives were: (i) to compile socioeconomic information on the APs likely to lose land or property to the project component; (ii) to obtain information on the extent of APs’ knowledge of the proposed project; and (iii) to identify APs’ preferences regarding land acquisition, house relocation and income rehabilitation measures.

The survey covers the rural households to be affected by permanent farmland acquisition and house demolishment in the affected Longxin and Longping Villages and all affected institutions and enterprises. A total of 289 households (1,374 APs) or 20.7% of the total 1,396 affected households within and beyond ROW, and 20 affected institution and enterprise or 100% were surveyed. Table 3-1 presents the surveyed VC and households.

Table 3-1 Surveyed Household and Units

No. of Surveyed District Management Office VC % Household Longxin & Longping 289 20.7% Subtotal 289 20.7% Changzhou District Xinglong Administration Office Institutions & Enterprises 20 100% Subtotal 20 100% Total 309

Longxin Village and Longping Village are situated in Hongling Area and Sanlong Area of Wuzhou City respectively. All of the residents living in the Area are farmers engaged in agricultural activities (rice and vegetable planting) and acquaculture. Due to the location close to the urban center, farmland holding per capita is small and semi-mechanization of agricultural farming, the time spent on agricultural activities have been reduced greatly. As a result, the majority of the labor force use most of their time to do seasonable migrant labors, small businesses, and working in enterprises. For the families with labor force, the economic situation is relatively good. Their annual gross income per capita is CNY 11,340 for Longxin Village and CNY 8,825 for Longping Village. Table 3-2 provides the brief economic status of affected village.

Table 3-2 Economic Status of Affected Village

VC Items Longxin Village Longping Village Total Households (No.) 1,522 1,007 Total Population (No.) 5,116 4,398 Females 2,486 2,152 Agricultural Populations 4,984 4,398 Non-agricultural Population 128 0 Labour Force (No.) 4,620 2,524 Industry 560 425

VC Items Longxin Village Longping Village Agriculture 1,120 1,785 Service & Tertiary Industry 2,940 314 Total Area of Farmland (mu) 19,900 1,115 Paddy Land 265 684 Irrigated Land 86 150 Dryland 2,532 2,674 Mountainous Wood Land 12,100 14,680 Orchard Land (on plain) 300 420 Orchard Land (on hilly land) 2,679 1,666 Fish Pond 1,226 1,366 Vegetable Land 712 1,801 Gross Income (CNY 10,000) 11,340 4,398 Agriculture 2,065 2,152 Industry 3,025 4,398 Service & Tertiary Industry 6,250 4,833

3.2.1 Demographic Features of APs

The detailed demographic features of surveyed APs are listed in Table 3-3, including age, population composition, education and occupation by gender.

The ages of the surveyed population showed that the population is approximately distributed in normal situation with the majority of the population between 20-35 years old who represent the major workforce and account for 30.5% of total sampled population. The age intervals are divided based on the population composition, e.g., the students accounted for 19.2% of the total surveyed population, which is the same with the population of the 7-19 years old (20.5%). According to this definition, therefore the total work force accounts for 68.5% of the surveyed population

Over half of the household members have received junior middle school education, and primary school education ranked second. A total of 18.5% of surveyed members have finished or are pursuing high school. The rest 0.6% have received education from vocational school, college and university. The 10 illiterate respondents (0.3%) are those who are over 55 years old.

The old people and women stay in the village to engage in agricultural activities or animal husbandry. Some women and young persons went out for seasonal work. Except agricultural production, 58.8% people are engaged in seasonable labor. 30.5% of the survey population engaged in small business. The remaining 10.7% take opportunities of other job including enterprises working, marketing and village administration staff for VC.

Table 3-3 Demographic Features of the Surveyed Populations

Male Female Total Item Number % Number % Number % Household: 289 729 53.06 645 46.94 1,374 100 Household Size: 4.75 Age ≤6 years 29 2.11 32 2.33 61 4.44 7-19 Years 139 10.12 135 9.83 274 19.95

Male Female Total Item Number % Number % Number % 20-35 Years 219 15.94 194 14.12 413 30.06 36-50 Years 146 10.63 129 9.39 275 20.02 51-60 Years 124 9.02 65 4.73 189 13.75 61-70 Years 36 2.62 51 3.71 87 6.33 ≥71 36 2.62 39 2.84 75 5.46 Total 729 53.05 645 46.95 1,374 100.00 Composition Kids 29 2.11 23 1.67 52 3.78 Students 146 10.63 119 8.66 265 19.29 Labor Force 496 36.10 445 32.39 941 68.49 Retired* 58 4.22 58 4.22 116 8.44 Total 729 53.06 645 46.94 1,374 100.00 Education Illiterate 0 0.00 0 0.00 0 0.00 Primary school 154 11.21 137 9.94 291 21.18 Middle school 460 33.48 407 29.62 867 63.10 High school 111 8.08 98 7.14 209 15.21 Vocational School 0 0.00 0 0.00 0 0.00 College 4 0.29 3 0.24 7 0.51 University or Above 0 0.00 0 0.00 0 0.00 Total 729 53.06 645 46.94 1,374 100.00 Occupation Farmer 729 53.06 645 46.94 1,374 100.00

Table 3-4 Demographic Features of the Surveyed Employees

Male Female Total Items Number % Number % Number % Affected Units: 20 395 62.20 240 37.80 635 100.00 Average Employees per Unit: 31.75 Age ≤6 years 0 0.00 0 0.00 0 0.00 7-19 years 0 0.00 0 0.00 0 0.00 20-35 years 237 37.32 144 10.48 380 59.89 36-50 years 130 20.47 79 12.44 209 32.95 51-60 years 28 4.41 17 2.68 46 7.17 Total 395 62.20 240 37.80 635 100.00 Composition Students 0 0 0 0 0 0 Labor Force 395 62.20 249 37.80 635 100.00 Total 395 97.60 240 94.78 635 100.00 Education Illiterate 0 0 0 0 0 0.00 Primary school 0 0 0 0 0 0.00 Middle school 61 9.60 92 14.42 153 24.02 High school 133 20.95 55 8.61 188 29.56 Vocational School 102 16.06 49 7.73 151 23.79 College 78 12.28 41 6.50 119 18.78 University or Above 21 3.31 3 0.54 24 3.85 Total 395 62.20 240 37.80 635 100.00 Occupation

Employees of Enterprises 395 62.20 240 37.80 635 100.00 Total 395 62.20 240 37.80 635 100.00 Note: Retirement age is over 60 years for male and 55 years old for female, which means labor forces refer to persons below retirement age and above 16 years old. Data sources: Socioeconomic survey in June, 2008

3.2.2 House Conditions

All of the houses in the Project area will be relocated. The survey results show that the average structure area of each household is about 85 m2, with the largest area at 500 m2. Table 3-4 is the area of structure for the surveyed households.

Table 3-4 Area of Structure for the Surveyed Households Unit: m2/household House Minimum Maximum Average Number of Rooms 2 18 3 Area of Structure (m2) 62 500 85

Most surveyed houses are frame or brick-concrete structures. Of the surveyed households, 76.41 of their houses are frame and brick-concrete, 16.35% brick-wood and the remaining 7.24% simple. Of the surveyed APs, 1,734 persons surveyed believed they will lose 100% of their houses, because they were informed from relocation mobilization meeting organized by WMG and Changzhou District Government that with the construction of Hongling Road Network Project, land around the project will be acquired for development under the other projects for the development of whole Hongling Area.

3.2.3 Land Use

The Project construction will acquire 815.56 mu of collective land, of which 436.56 mu, including 25 mu of paddy land, 60 mu of rural house plot, 45 mu of dry land, 56 mu of vegetable land, 110 mu of fish pond, 149.56 mu of other types of land will be acquired from Longxin Village of Hongling Area, and 379 mu, including 15 mu of paddy land, 12 mu of rural house plot, 78 mu of dry land, 53 mu of vegetable land, 31 mu of fish pond, 190 mu of other types of land from Longping Village of Sanlong Area. A total of 1,288.44 mu state-owned land, including 178.72 mu of land acquisition from institutions, 159.33 mu of land use from industrial enterprise, and 950.39 mu from road and reserve land will also be acquired. As a result, the total permanent land acquisition by the Project is 2,104 mu.

3.2.4 Financial Situation of Households

The incomes are divided into two categories: household members working for the institution or enterprise and household members self-employed. The expenditures and savings of each household are calculated mainly based on “with fixed income” or “without fixed income” status. Table 3-5 provides the average financial situation of surveyed households in 2007.

Table 3-5 Average Financial Situation of Surveyed Households in 2007

Annual Financial Situation of Households (CNY/Capita) Item Affected Farmers Employees in Institutions and Enterprises Number of Surveyed Households Average Income Per Capita 3,800 18,000

Annual Financial Situation of Households (CNY/Capita) Item Affected Farmers Employees in Institutions and Enterprises Average Expenditure Per Capita 2,500 15,200 Average Savings Per Capita 1,300 2,800

To understand the financial status of the surveyed households, it is necessary to understand the income sources and expenditure patterns. Statistical data showed that the income shares of Hongling Area are ranked at middle level of Wuzhou City. In the affected Longxin Village, the villagers are mainly engaged in farming and animal breeding, seasonable migrant labors, small businesses and working in enterprises in nearest areas of the village. Agricultural income accounts for 30% of their total family income. The average net income from agricultural farming account for CNY3,402 per capita in Longxin Village. With the urban development in Hongling Area in addition to the road network project, all land in Longxin Village will be acquired. As a result, the villagers will lose 100% of their farmland and agricultural income, which account for 30% of their total family income. In Longxin Village, the villagers are mainly engaged in farming, seasonable migrant labors, small businesses and working in enterprises in nearby areas. Paddy rice, sweet potatoes, soy beans, peanuts and corns are major agricultural crops. The average net income from agricultural farming account for CNY3,089 in Longping Village, which is 35% of their total family income. As the result of land loss, the APs will loss 12.6% of their income of their total family income.

The expenditures spent for children’s education accounted for 35%, ranking second after that for food, and for agricultural production accounting for 15%. For the households who have debts are due to money borrowing for paying their children’s tuition or related costs, particularly for paying education costs for higher education. Table 3-6a and Table 3-6b provide the income sources and expenditure patters of surveyed farmer households, respectively. Table 3-6c presents details of monthly expenditure of surveyed farmer households.

Most APs were engaged in technical work in factories or seasonal work such as construction, restaurant waiter, gate guard, shop service with monthly income of CNY 600 to CNY 2,500 and annual working time of 200 days to 250 days.

Table 3-6a Income Sources of Surveyed Farmer Households in 2007 (N=289)

Income Source Agricultural Seasonable Labor Others Total % 30 55 5 100

Table 3-6b Expenditure Patterns of Surveyed Farmer Households in 2007 (N=289)

Agricultural Culture & Transport & Expenditure Food Clothes Housing Education Health Care Total Activity Recreation Communications % 25 10 15 15 30 0.7 2.0 2.3 100

Table 3-6c Monthly Expenditure of Surveyed Farmer Households in 2007 (N=289)

Expenditure (CNY/month) Total 126 AHs < CNY800 163 AHs> CNY800 Items Expenditure Average Expenditure Average Expenditure Average of surveyed Expenditure / of surveyed Expenditure of surveyed Expenditure / households Household households / Household households Household Tabacco & alcohol 10,670 36.92 2,520 20 8,150 50 Clothes 22,600 78.20 6,300 50 16,300 100 Family facilities and 32,160 111.28 12,600 100 19,560 120 services Health care 15,120 52.32 15,120 120 0 Public transportation 12,300 42.56 2,520 20 9,780 60 Agricultural 16,430 56.85 5,670 45 10,760 66 production Communication 10,670 36.92 2,520 20 8,150 50 Entertainment 9,410 32.56 1,260 10 8,150 50 Education 32,160 111.28 12,600 100 19,560 120 Rent 0 0.00 0 0 0 0 Water, electricity and 45,200 156.40 12,600 100 32,600 200 gas costs

Total expenditure 288,990 1,000.00 98,280 780 190,710 1,166

Table 3-7a and Table 3-7b provide the income sources and expenditure patters of surveyed employees, respectively. Table 3-6c presents details of monthly expenditure of surveyed employees.

Table 3-7a Income Sources of Surveyed Employees in Affected Institutions and Enterprises in 2007 (N=500) Income Source Stable Salary Business Others Total % 85 10 5 100

Table 3-7b Expenditure Patterns of Surveyed Employees in Affected Institutions and Enterprises in 2007 (N=500)

Health Culture & Transport & Expenditure Food Clothes Housing Education Total Care Recreation Communications % 30 10 20 30 4.5 3.0 2.5 100

Table 3-7c Monthly Expenditure of Surveyed Employees in Affected Institutions and Enterprises in 2007 (N=500)

Expenditure (CNY/month) Total 138 APs < CNY 1,100 372 APs > CNY1,100 Items Expenditure Average Expenditure Average Expenditure Average of surveyed expenditure / of surveyed expenditure of surveyed expenditure / households households households / households households households Food 144,225 288 37,950 275 106,275 325 Tobacco & alcohol 28,845 58 7,590 55 21,255 65 Clothes 57,690 115 15,180 110 42,510 130 Family facilities and 28,845 58 7,590 55 21,255 65 services Health care 86,535 173 22,770 165 63,765 195

Expenditure (CNY/month) Total 138 APs < CNY 1,100 372 APs > CNY1,100 Items Expenditure Average Expenditure Average Expenditure Average of surveyed expenditure / of surveyed expenditure of surveyed expenditure / households households households / households households households Public transportation 11,262 23 2,760 20 8,502 26 Communication 23,010 46 4,410 35 18,600 50 Entertainment 9,882 20 1,380 10 8,502 26 Education 120,075 240 13,800 100 106,275 325 Water, electricity and 56,310 113 13,800 100 42,510 130 gas costs

Total expenditure 566,679 1,133 125,580 910 425,100 1,300

3.2.5 Vulnerable Groups

Vulnerable groups were identified based on field survey, including “Five Guarantees Family”, household living under MLG, and women-headed households. In total, there are 32 households and 87 persons or 6% of the total affected households classified as vulnerable households in the project affected area. No minorities will be affected by the Project. Of the total 32 vulnerable households, 7 “Five Guarantee Families” who have no labor forces, no income sources, no family member to support their living, disabled and orphan, are living on the government subsidy to cover the costs of food, clothes, fuel, education and death. They are not engaging in any economic activities, thus there is no livelihood and income loss to them from LAR activities, they will keep receive same government support as before. In addition, they will also receive assistance from WMG during relocation process, and priority will be given to choose building location and floor by the IA and WMG.

For the 10 vulnerable households, they are consisted of those who are old, sick, and in financial debts and mainly engaged in agricultural farming and some temporary labor works. Their annual net income from the economic activities is less than CNY 300 to CNY 400 per capita and they are living under local rural poverty line less than CNY 650 per capita per year. After land acquisition, they will lose all of their annual income from agriculture at about CNY 300 per capita. As their status will be changed from rural households to urban households, thus, they will enjoy the provision of MLG by local affairs bureau at CNY195/month/capita. In addition, they will also enjoy the provision of training and employment opportunities offered by the IAs, and micro-credit provided by WMG, and assistance during relocation process provided by WMG. No income loss will result from the relocation. Thus, they will benefit from the Project.

For the 15 female-headed rural families, they are mainly engaged in agricultural farming and some temporary work in institutions and enterprises. Their net annual income from economic activities range from CNY 500 to CNY 1,600 per capita. There are 5 families are living under local rural poverty line less than CNY650 per capita per year. After land acquisition, the female- headed households will lose all of their annual income from agriculture at about CNY 450 to CNY 600. For those households if their income will be less than local MLG after land acquisition, they will get provision of MLG at CNY195/month/capita by local affairs bureau. In addition, they will also enjoy the provision of training and employment opportunities offered by the IAs, and micro-credit provided by WMG, and assistance during relocation process provided by WMG. Priority will be given to choose building location and floor by the IA and WMG. No income loss will result from the relocation. As a result, they will benefit from the Project.

3.3 Gender Analysis

This section will discuss the gender issues related to the land acquisition and resettlement impacts, including three aspects: (i) gender difference in education, (ii) gender difference in occupation and income, and (iii) gender views related to resettlement.

3.3.1 Gender Difference in Education

Based on the survey data, it is clearly shown from the Project affected area that women has higher proportion for middle school than men and are close men for the higher education levels. Table 3-9 presents the education difference between male and female

Table 3-9 Education Difference between Male and Female (%)

Primary Middle High Vocational University or VC Gender Illiterate College School School School School Higher Longxin Male 0 21.2 63.1 15.2 0 0.5 0 Village Female 0.6 21.8 73.3 3.7 0.2 0.2 0.2

3.3.2 Gender Difference in Occupation and Income

Similar to and interlinked with the education background of men and women’s groups, women engaged in agricultural farming are 12% higher than men. The shares of women’s income in household’s total income range from 6% to 70%, with an average at 45%. Table 3-10 presents women’s share of household income in 2007.

Table 3-10 Women’s Share of Household Income in 2007

Women’s Share % of Total Average Women Range of Household Monthly (%) of the Total Household (No.) Surveyed Monthly Income Income Household Household (CNY/capita) Income Affected Farmer HHs (N=289) < 400 35 12.11 45.3 160 400 - 600 45 15.57 34.8 174 601 - 800 86 29.76 44.2 310 801 – 1,000 113 39.10 42.1 380 >1,000 10 3.46 38.9 465 Subtotal 289 100.00 41.8 305 Women’s Share % of Total Average Women (%) of the Total Female Employees(N=239) Employees (No.) Affected Female Monthly Income Household Employees (CNY/capita) Income Affected Female Employees (N=239) <600 23 9.62 37.8 489 601 - 800 67 28.03 44.3 723 801 – 1,000 97 40.59 51.4 922 1,001 – 1,500 43 17.99 57.9 1200 >1,500 9 3.77 54.8 1590 Subtotal 239 100.00 49.40 900

3.3.3 Gender Perspectives on Resettlement

When asked the surveyed APs households on the resettlement issues, the majority of the affected households males and females households request fair and timely compensation if their houses have to be demolished. Comparing with the concerns on relocation, the surveyed households care little about land acquisition. But they have strong desire to be allocated replacement houses at property rights exchange. 100% of surveyed households will buy social insurance and most of them showed the desires to develop small business or other job opportunities through training. Farming is not a preferable option as all land in Hongling Area will be used for the urban development according to the Master Plan. Table 3-11 provides the opinions and concerns of the APs for resettlement. All of these concerned raised will be incorporated in the planning and implementation of resettlement program, and relevant mitigation measures should be formulated and implemented.

Table 3-11 Opinions and Concerns of the APs on Resettlement

Item % of Males (N = 571) % of Females (N = 429) % of Total (N=1000) Fair Compensation 100% 100% 100% Availability of Replacement Houses 100% 100% 100% Timely Compensation 91% 93% 92% Employment 45% 20% 32.5% Income Loss 45% 55% 50% Future Employment 70% 68% 69% Children’s Education 70% 76% 73% Assistance during Resettlement 25% 40% 30% Loss of Family Social Network 4% 8% 6% Others (Government’s Assistance) 20% 26% 23%

IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE

4.1 Public Participation Strategy

Great attention has been paid to public participation under the Project during the planning, and RP preparation. Comments have been solicited from villages, government organizations and affected households.

4.2 Methods and Measures of Public Participation

During the preparation of the project FSR, PMO, IA and DI have held various meetings with the relevant organizations and representatives of villages regarding the land acquisition and resettlement issues and compensation policies. Comments and suggestions have been obtained on the resettlement site, compensation, and livelihood and income rehabilitation plan. The RP has been prepared based on the above.

During the project implementation phase, PMO, IA and ROs will encourage local villagers to involve in the land acquisition and livelihood rehabilitation and income restoration process.

4.3 Public Participation during RP Preparation

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

(1) During the measurement survey of land acquisition and resettlement between December 2007 and June 2008, all levels of relevant organizations responsible for land acquisition and resettlement, village committees, representatives of villagers (including women) have been involved in the survey activities. During the survey, women were basically on the spots, they carefully checked and read the index investigation final results.

(2) From December 2007 to March 2008, the PMO, IA and DI organized many meetings with district leaders, representatives of VC, village groups and APs to publicize the existing national, provincial and municipal resettlement policies and ADB’s Policy on Involuntary Resettlement. Comments have been solicited from the participants for minimizing the project impacts, and formulating the compensation rates, and resettlement and rehabilitation plan. With extensive consultations, the APs who will be affected with different losses all agree with the cash compensation in accordance with the national regulations.

(3) During resettlement planning period from December 2007 and June 2008, PMO, IA, DI, and other relevant organizations visited the affected village committee and villager group, held meetings with participation of the villager leaders and representatives of villagers to solicit their comments on land acquisition and resettlement, compensation policies and standards, resettlement plan, and restoration measures. These consultation meetings and investigations have generated lots of interests in the resettlement issues and compensation policies, compensation entitlements, and rehabilitation plan. The location of new resettlement sites was discussed.

(4) In order to strengthen the project awareness and outreach, PMO, IA and DI conducted questionnaire surveys of the APs in June 2008. The survey covered all the households

to be affected by residential and non-residential structure demolishment; there was extensive representation; and the result is reliable and reflects the preferences of the APs.

(5) Consultation workshops on environment and resettlement between January and June, 2008.

The results of the consultation indicate that in general, the APs wished: i) cash compensation and replacement houses at property rights exchange; ii) cash compensation for relocation. They will use the cash they receive for the purchase their new houses in new resettlement site within Hongling Area or other communities either commercial houses or economy houses. They also would like to use cash compensation from the loss of their land to rehabilitate their livelihood and income, such as: i) purchase of social insurance; ii) development of self-employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment and catering services); iii) investment in their children’s education. They expect to seek employment in other institutions, enterprises and businesses through training. The APs are satisfied with the compensation rate, and resettlement and rehabilitation measures. However, they also expressed their concerns on fair compensation and timely disbursement of compensation payment.

4.4 Women’s Participation

Women in the Project area enjoy equal rights with men and they are playing an important role in project planning, design and implementation. During the field survey, about 50% of women have participated in the survey on land acquisition, house demolishment and inventory indexes. Meanwhile, the local government organized the resettlement consultation meeting (at least 30% participants are women) and some representatives of Wuzhou City Women’s Federation were asked to participate in consultation meetings to fully solicit opinion of local women. The major concerns for women are fair compensation standards and timely compensation payment. They would like to get necessary assistance from the local government during the land acquisition and resettlement process, priority for employment and training opportunities.

4.5 Information Disclosure

4.5.1 Resettlement Information Brochure

In order to help the APs gain a good understanding of the land acquisition and resettlement policies and their entitled rights, IA (WDSAIMC) in association with DI has prepared a resettlement information brochure (RIB) and a copy of RIB will be distributed to each AP by the end of August, 2008. Please refer to Appendix 1 for the RIB. The main components of the brochure include: (1) general description (including purpose and location) of the Project and the socioeconomic benefits; (2) project impacts; (3) laws, regulations and policies of land acquisition and resettlement; (4) basic rights and entitlements of the APs; (5) compensation rates; (6) resettlement and income restoration plan and grievance procedure; and (7) implementation schedule. The affected persons were satisfied with the compensation rates and the rehabilitation measures proposed. They will sign their agreement on the entitlements. The disclosure procedure can increase the transparency during the resettlement implementation. At the same time, it will advise the APs how they can raise their requests and appeal through various channels (including the VC, PMO, IA and ROs, WLRB, WHDAO, IMA, and court) and various methods (i.e. by visiting, writing letter or telephone).

4.5.2 Distribution of the Resettlement Plan

The draft resettlement plan was distributed to the affected VC on 28 June 2008. The RP approved by WMG will be redistributed to village committees by the end of August 2008 to any one wishing to consult the document at the VC. Copies of the RP will be kept in the Project office and affected VC. At the same time the RP will be posted on the ADB’s website by the end of August 2008. The RP will be updated based on the detailed measurement survey (DMS) and will be disclosed to the APs and submitted to ADB for review and approval. After ADB approval, the updated RP will also be posted on ADB’s website for disclosure.

4.6 Public Participation Plan during RP Implementation

In order to address the problems and needs of the APs properly and timely regarding land acquisition and resettlement, further consultations with the APs will continue so that all issues may be addressed prior to the start of construction and the implementation of the RP. Meetings will be arranged by the implementation agencies for land acquisition and resettlement, as appropriate. Each affected household will have the opportunity to negotiate the compensation contract, which they will sign with the RO. Table 4-1 provides the public consultation plan and process.

Table 4-1 Public Consultation Plan and Process

Purpose of Target Form of Event Timing Implementing Agencies Remarks Event Participants 1. Provide Community Dec 2007 – PMO, IA, DI, district All APs affected Meetings held with APs briefings to APs meetings and Jan 2008 government, and VC by LAR of the in each village on Project & RP. focus group Project Solicit discussion comments from APs. 2. Disclosure of Public & August, PMO, IA, DI, district All APs affected Distribution of RIB to all RIB community 2008 government, WLRB, by LAR of the APs to discuss concerns meetings and WHDAO, and VC Project and suggestions on LAR focus group programmes discussions Undertook discussions with various focus groups to solicit comments & suggestions 3. Present Draft Public & August, PMO, IA, DI, district All APs affected Distribution of the draft Final RP to APs community 2008 governments, and VC by LAR of the RPs to APs to discuss meetings and Project concerns & gaps focus group relating to LAR discussion programs

Undertake discussions with various focus groups to solicit comments & suggestions

Purpose of Target Form of Event Timing Implementing Agencies Remarks Event Participants 4. Conduct Final Site November, PMO, IA, DI, ROs, district All APs affected Inventory survey of all Detailed investigations 2008 governments, WLRB, by LAR of the assets and land Measurement and household WHDAO, and VC Project holdings Survey (DMS) interviews Collection of socioeconomic data 5. Prepare and Public & December, PMO, IA, and ROs Stakeholders, Meetings to be held with Disclose community 2008 beneficiaries, beneficiary population, Detailed Design meetings and and APs and with APs and Updated RP focus group to APs Prior to discussion Submission to ADB for Approval 5. Advise APs of Public meetings January, PMO, IA, ROs, district All APs affected Household meetings to Entitlements and 2009 governments, and VC by LAR of the outline entitlements Dates of Project Disbursement 7. Monitoring of Household June 2009 – PMO, IA, ROs, district Random Provide APs, interviews December government, WLRB, samples recommendations and beneficiaries 2013 WHDAO, and VC, and update RP monitoring independent monitoring plan agency Note: RO = Resettlement Office; WHDAO = Wuzhou House Demolishment Administration Office; WLRB = Wuzhou Land Resource Bureau; VC = Village Committee

For smooth and successful implementation of the resettlement plan, the APs will be encouraged to actively participate in various land acquisition and resettlement activities. The project construction will cause some impacts more or less on local people. In order to ensure the APs could benefit from the project, local people are encouraged to actively participate in the project construction, and necessary consideration and assistance should be provided to local APs in the use of labors.

V. APPEALS AND GRIEVANCE PROCEDURES

APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The first step of grievance procedure established for the Project is through village committee, which is localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. APs will be informed of the above grievance and appeal procedure through public information meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely. The basic grievance procedures include the following steps.

Stage 1: If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the village committee or in oral or in written form. If an oral appeal is made, the village will record it on paper and process it. Village committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2: If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision; the district government office will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 3: If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Wuzhou Project Management Office (WPMO) or Wuzhou Land Resource Bureau (WLRB) or Wuzhou House Demolishment Administration Office (WHDAO) after receiving the decision. The Wuzhou City PMO or WLRB or WHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4: If the aggrieved AP is still unsatisfied with the decision of the WPMO or WLRB or WHDAO, he/she will appeal to the Provincial LRB or HDAO after receiving the decision. The Provincial LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 5: If the AP is still dissatisfied with the decision of the Provincial LRB or HDAO, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision of from Provincial LRB or HDAO. The AP will be informed of the result via written notice. . The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

An independent agency (IMA) will be hired by the WPMO for the overall resettlement monitoring and evaluation of the Project in Wuzhou City. The IMA will inspect and report on the resettlement processes and the operation of the WPMO and relevant organizations involved in the LAR implementation at different levels and correct any errors made during the resettlement process.

VI. LEGAL FRAMEWORK AND POLICIES

6.1 Applicable LAR Laws, Regulations and Policies

The PRC has established and implemented laws, regulations, and policies on resettlement and compensation for many infrastructure projects. This Project will follow the related Chinese laws, national and provincial regulations and local bylaws and policies, and also include comments and suggestions from APs, and meanwhile meet the requirements of ADB’s Policy on Involuntary Resettlement. The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project.

The land acquisition, demolition and resettlement of this Project will be complying with the laws and regulations of PRC, local government and ADB:

¾ Land Administration Law of the PRC, amended in 2004; ¾ Management Law of Urban Real Estate of PRC, 1994; ¾ Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law, 2001; ¾ Urban Housing Demolition Management Regulations of the PRC issued in 2001; ¾ Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003; ¾ Guidelines for Valuation on Urban House Demolishment of PRC; 2004; ¾ Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region; ¾ Wuzhou Municipal Government Approval on Relocation and Compensation Scheme of Hongling Area Construction, 2003; ¾ Wuzhou Municipal LRB Approval on Compensation Standard of Land Acquisition of Hongling Development Area, 2008; ¾ Wuzhou Implementation Method on State-owned Land Reserve (Provisional), 2003; ¾ ADB’s Involuntary Resettlement Policy, 1995; ¾ Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998; ¾ Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and, ¾ OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006.

6.2 ADB’s Involuntary Resettlement Policies

ADB Involuntary Resettlement Policy (1995) and Resettlement Operations Manual (OM Section F2) have already specified the 3 important elements of the involuntary resettlement: (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. Some or all of these elements may be present in a project involving involuntary resettlement. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into account the following basic principles:

i) Involuntary resettlement should be avoided whenever feasible;

ii) Where population displacement is unavoidable, it should be minimized by exploring viable livelihood options; iii) Replacing what is lost. If individuals or a community must lose all or part of their land, means of livelihood, or social support systems, so that a project might proceed, they will be compensated and assisted through replacement of land, housing, infrastructure, resources, income sources, and services, in cash or kind, so that their economic and social circumstances will be at least restored to the pre-project level. All compensation is based on the principle of replacement cost; iv) Each involuntary resettlement is conceived and executed as part of a development project or program. ADB and executing agencies or project sponsors, during project preparation, assess opportunities for rehabilitation measures, the affected people need to be provided with sufficient resources and opportunities to re-establish their livelihoods and homes as soon as possible, with time-bound action in coordination with the civil works; v) The affected people are to be fully informed and closely consulted. Affected people are to be consulted on compensation and/or resettlement options, including relocation sites, and socioeconomic rehabilitation. Pertinent resettlement information is to be disclosed to the affected people at key points, and specific opportunities provided for them to participate in choosing planning and implementation options. Grievance redress mechanisms for affected people are to be established. Where adversely affected people are particularly vulnerable groups, resettlement planning decisions will be preceded by a social preparation phase to enhance their participation in negotiation, planning, and implementation; vi) Social and cultural Institutions. Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and socially harmony is promoted; vii) No formal title. Indigenous groups, ethnic minorities, pastoralists, migrants/floating population, people who claim for such land without formal legal rights, and others, who may have usufruct or customary rights to affected land or other resources, often have no formal legal title to their lands. The absence of a formal legal title to land is not a bar to ADB policy entitlements; viii) Confirmation of eligibility. Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligible cut-off date, preferably at the project identification stage, to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits; ix) The poorest. Particular attention must be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly indigenous peoples. Appropriate assistance must be provided to help them improve their socioeconomic status; x) The full resettlement costs are to be included in the presentation of project costs and benefits. This includes costs of compensation, relocation and rehabilitation, social preparation and livelihood programs as well as the incremental benefits over the without-project situations (which are included in the presentation of project costs and benefits). The budget also includes costs for planning, management, supervision, monitoring and evaluation, land taxes, land fees, and physical and price contingencies. xi) Eligible costs of compensation. Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability

of the required resources and to ensure compliance with involuntary resettlement procedures during implementation.

6.3 Related Laws and Regulation of PRC

This Project can be implemented based on the PRC Land Administration Law (effective as of January 1, 1999 and amended in 2004), Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration issued by State Council, October 2004, Urban Housing Demolition Management Regulations of the PRC issued in 2001, and Management Law of Urban Real Estate of PRC (effective as of July 5, 1994) as well as the other relevant laws and regulations.

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

Article 12: Improving land acquisition compensation practice. People’s Governments at the county level and above shall adopt practical measures to ensure that the farmers whose land is acquired shall not be made worse off. It should be ensured that land compensation fees, resettlement subsidies and compensation for ground attachments and standing crops shall be provided in accordance to applicable laws and regulation in full and in time. If the land compensation fees and resettlement subsidies as stipulated by law still cannot be able to maintain the original standards of the land-losing farmers and are not adequate to cover the social insurance costs of the landless farmers, the provincial government shall approve an increase in the resettlement subsidies. If the sum of the land compensation fees and resettlement subsidies has reached the legal upper limit but still cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land. The provincial government shall formulate and publicize the standard annual output or regional land prices for land acquisition in the cities and counties under the provincial jurisdiction. Land acquisition compensation shall be kept identical for identical quality of land in same locality. The full costs of land acquisition for national key development projects shall be included in the overall project budget.

Article 13: Properly resettling farmers whose land is acquired. People’s Governments at the county level and above shall formulate concrete measures to guarantee the long-term livelihood of the farmers whose land is taken. The farmers shall be given stocks for land-taking projects that have stable revenues. In a prescribed urban zone, the local government shall place the farmers who are made landless because of land acquisition in the urban employment system, and set up a social insurance system for them. If the acquisition of collective land takes place outside the prescribed urban area, the local government shall set aside essential farmland within the administrative area or assign suitable jobs. Resettlement in distant areas should be considered for farmers who can no longer have adequate land to continue farming. The labour and social insurance departments shall cooperate with other relevant departments to provide guidance on the establishment of employment training and social insurance program for land- losing farmers.

6.3.2 PRC Land Administration Law

The Land Administration Law of the PRC was passed at the 16th session of the Sixth Standing Committee Meeting of the National People’s Congress on June 25, 1986. It was subsequently amended at the Fourth Session of the Ninth Standing Committee Meeting of the National People’s Congress on August 29, 1998. The newly amended law was brought into

force on January 1, 1999, according to the Decision on the Amendment to the Land Administration Law of the PRC that was adopted at the Fifth Session of the Seventh Standing Committee Meeting of the National People’s Congress.

ARTICLE 47: Land acquired shall be compensated for on the basis of its original purpose of use.

Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the acquired land. Compensation for acquisition of cultivated land shall be six (6) to ten (10) times the AAOV of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person for the unit of the land is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four (4) to six (6) times the AAOV of the acquired cultivated land for three years preceding such acquisition. However, the highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition.

Standards of land compensation and resettlement subsidies for acquisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for acquisition of cultivated land.

Standards for compensation of attachments and young crops on the acquired land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government.

For acquisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State.

If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the farmers needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition.

6.3.3 Urban House Demolition Management Regulation of PRC

Article 6: The demolition unit can not demolish house/building until obtaining the demolition certificate.

Article 22: The demolition unit should give the tenants compensation according to these regulations. There is no compensation for demolishing illegal building and temporary buildings 3 that exceed the approved period2F .

3 It means beyond the expiry date certification.

Article 23: Resettlement compensation can be paid out in cash, or by exchange of property rights. The resettlers can choose between the two compensation options – cash compensation or house exchange.

Article 24: The amount of compensation shall be determined on the basis of the assessment of the real estate market, in reference to the location, purpose of use, construction area and other factors.

Article 31: The acquiring unit shall pay a resettlement allowance to the owner of the building or its tenants. During the transition period, if the owner or tenants arrange living places by themselves, the acquiring unit should pay them an allowance for their temporary transition. If the owner and tenants use temporary accommodation provided by the acquiring unit, no temporary transition allowance is necessary.

The standard of the resettlement allowance and temporary settlement allowance will be regulated by the people’s government.

If the demolition extends the transition period for which the acquiring unit is accountable, the acquiring unit shall increase the allowance to the owner or tenants by the months delayed. For those who use the transition building, the acquiring unit shall give a temporary settlement allowance by the months delayed.

Article 33: The acquiring unit shall compensate for production stoppage and business disturbance to any non-residential building.

6.3.4 Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law

Article 7: The ownership of the state-owned and rural collective-owned land shall be determined by the Land Administration Law, the implementation regulation of the Land Administration Law and other laws and statutes.

Article 8: The rural collective-owned land is legally owned by the farmer's collectives and managed and administrated by the village collective economic bodies. If the village collective economic body is not complete, the villager committee shall manage and administrate the land. If the land in a village is owned by more than two rural collective economic bodies, each of the bodies or village group shall manage and administrate the land. If the land is owned by town or township, the rural collective economic bodies of the town or township shall manage and administrate the land. If the rural collective economic body of the town or township is not complete, the town or township government shall manage and administrate the land.

Article 21: Preparation of the yearly schedule of land use shall follow the following principle.

(I) Strictly follow the overall land use plan and dominate the gross land size used for construction and protect the cultivated land. (II) Guide the land demand by land supply, and rationally and effectively utilize the land. (Ill) Preference of use of land shall be given to the key capital construction projects, and the projects supported by the state industrial policies of the region and state. (IV) Protect and improve the ecological environment and the sustainable use of the land resources.

Article 26: The followings shall abide by in reclaiming new cultivated land in same size and quality of the cultivated land requisitioned for non-agricultural construction. (I) Within the land boundary for urban construction defined in the overall land use plan, the local city, county government shall be responsible for organizing reclamation for implementation of the planned urban construction; (II) Within the land boundary for construction of village or town facilities defined in the overall land use plan, the town or township government shall be responsible for organizing the rural collective economic bodies or the land occupying organization to reclamation for implementation of the planned construction of village or town facilities; and (IlI) For the cultivated land occupation for construction of power generating, transportation, water conservancy, mining and military facilities beyond the land boundary for urban and rural construction defined in the overall land use plan, the land occupation organization shall be responsible for reclamation of new cultivated land.

Article 27: For the cultivated land occupied for non-agricultural construction, the organization or individual shall pay the reclamation fee if he has no means for reclamation.

Article 34: The land use organization and individual shall restore the destroyed land due to excavation, collapse and occupation during production and construction according to the State's and Regional stipulations concerning reclamation of land, and in 30 days of completing such reclamation, applies to the land administrative department of local municipality, county (city) government for inspection and acceptance. In case the land use organization or individual who has not means to conduct reclamation or whose such reclamation is not in compliance to the requirement in acceptance, he shall pay to the land administrative department of local municipality, county (city) government the land reclamation fee at a rate of CNY 20-80 per square meter. The said land administrative department shall organize the land reclamation.

Article 45: Each rural villager's household shall have only one piece of house plot. Construction of villager's residence shall be in compliance to the overall land use plan of the town/township, and shall be in combination of the reconstruction of the old village and take full advantages of the old house plot, idle land and waste land on hills within the village. Occupation of farmland shall be strictly limited. The area of approved new house plots shall observe the following criteria: (1) size of house plot in plain and suburban areas shall not exceed 100 square meters for each household; and (2) size of house plot in uplands and hilly areas shall not exceed 150 square meters for each household.

6.3.5 Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC

Article 9: When the house demolition administration department issues a house demolition permit, it shall be within 5 days, publicize all contents specified in the house demolition permit, including the name of the Project, structure dismantler, scope of demolition, and time limit of demolishment, implementation unit of demolishment, etc. The announcement should be made in the form of house demolishment notification.

The house demolition administration department and the dismantlers shall properly publicize and explain the relevant matters to the resettlers.

Article 18: The demolition unit and the affected people shall reach agreement on compensation and resettlement for demolition.

For demolition of rental houses, the demolition unit shall reach agreement with the affected

people and the tenants on demolition compensation and resettlement.

Article 19: Dismantlees or house tenants should be compensated by dismantlers based on household house property certificate, rental vouchers of public houses and house rental contracts which are effective after issuance date of house demolition permits.

The dismantlees and house tenants signing compensation agreements refer to the property owners with house property certificate and tenants with rental vouchers of public houses or house rental agreement.

Article 20: The agreement of demolition and resettlement compensation shall contain the following contents:

(i) Construction area of the houses to be demolished; (ii) Amount of cash compensation for demolition; (iii) Methods of compensation and resettlement; (iv) Time limit of relation, approach of temporary transition and time limit of temporary transition; and, (v) Other issues mutually agreed by concerned parties.

Article 32: Dismantlers should pay all compensation exclusively for house demolition and relocation purpose and can not be used for other purposes.

House demolition administration department should establish financial regulatory system to enhance financial supervision on the relocation compensation.

Article 34: Dismantlers should compensate the dismantlees in accordance with of the regulation.

Demolition of illegal structures and temporary buildings exceeding approval period should not be compensated. Demolition of temporary buildings within approval period should be compensated. The monetary compensation formula is: monetary compensation = replacement price of temporary structure x remaining period ÷ approved period.

Replacement price refers to replacement price on the date of issuance of housing demolition permit.

Article 37: Formula for monetary compensation for house demolition is: monetary compensation = unit price of real estate market assessment for demolished house x construction area of house to be dismantled.

The unit price in the preceding section refers to the price of construction area per square meter.

If real estate market assessment price is lower than the lowest compensation rates, the lowest compensation rate should be applied. Lowest compensation rate refers to the average market unit price of purchased public houses in similar structures and locations. The specific criteria should be determined by city and county governments.

Article 38: For decorated houses, except for movable parts and materials, the decoration should be partially compensated. Formula for monetary compensation of house decoration is: monetary compensation of house decoration = replacement price of housing decoration x

(standard life duration - actual time used of decoration) ÷ standard life duration.

The replacement price of house decoration in the preceding section refers to replacement price of the same grade house decoration on the date of issuance of housing demolition permit. The standard life duration refer to:

(1) 10 years for residential houses; (2) 7 years for office building; and, (3) 5 years for shops, hotels, restaurants and other business premises.

The lowest monetary compensation for house decoration can not be lower than 20% of replacement price of house decoration.

Article 50: Demolition has been implemented without obtaining a house demolition permit, the house demolition administration department, in accordance with the "Article 34” of the regulation, should order a stop of demolition by warning with a penalty of CNY20 to CNY50 per square meter of demolished houses.

6.4 Gaps between ADB and Chinese Policies

In comparing the gaps between ADB and PRC policies, Table 6-1 presents that the distinctive differences in the aspects of legal rights or property certificates, and information disclosure and consultation which are lacking in content or in time delays.

Table 6-1 Gaps between ADB and PRC Policies

Differences Comparison Solutions Relocation There are rules and regulations in PRC related to the It is important that the performance of concerned compensation relocation compensation. But compared to the equivalent management organizations should comply with the policies of ADB, the execution of these regulations are ADB’s policy. Meanwhile, attention should be paid to usually not so transparent. Measures should adopt to make APs’ participation and activities to increase awareness sure that the compensation fee will be distributed timely and of public participations during RP implementation. The sufficiently. IA and ROs should ensure that all of the people understand the policies and procedures regarding land acquisition, resettlement, compensation, payment, and provision of grievance redress and appeal procedures. Besides, the EAs should enhance the internal and external supervision. Consultation and According to the requirement of ADB for the RP preparation, To meet the requirements of public consultation and Public Notification the APs should be fully informed and closely consulted. In transparency, ADB’s procedures have been and will be the Land Administration Law of PRC, it provides the followed for the Project. The public consultation and consultation service, but provides no concrete and specific notification should be a part of the management clauses and procedures. During actual practice, usually meetings of the Project. To avoid the circumstance that there is no consultation and no information disclosure until administration departments is unwilling to inform the the approval of RP due to the facts that formal land people, during the preparation of the resettlement plan, acquisition and location are not finalized during the RP the cut-off date should clearly specified in the RP, and preparation stage and the land user is unwilling to inform the measurements and surveys should be carried out in APs. details as much as possible, and a good communication channel should be established with the APs. Grievance Land Administration Law of PRC provides a grievance Although it is difficult tasks, effective safe measures Procedures procedure, but few people have used the formal procedure should be put into place to strengthen the principles of and the grievance documents are usually incomplete. ADB the resettlement and compensation. Training of the policy requires safe measures to protect the rights of the resettlement staff should be undertaken to ensure that APs and actual methods to solve the disputes of the APs. they will pay more attention to the needs and concerns Therefore, this requires a complete “step-by-step” of the APs. The APs should be well informed regarding

Differences Comparison Solutions management, supervision and subsequent actions to be the grievance procedures and processes, including taken to resolve the issues and disputes of the APs. Further, some good cases of grievance and resolution. Chinese laws tend to the method of “resettlement first, and dispute resolution second”, in contrary, ADB required to take as much time as possible to settle down issues before land acquisition and resettlement. Temporary The most common way in China is to provide temporary To meet the requirements of ADB, the following resettlement house. ADB’s policy is to reduce the resettlement as much measures should be adopted: No temporary as possible and ensure the residents live in the illegal resettlement will be allowed for the resettlement of the houses move to the legal ones. Project. The illegal houses will be compensated as the legal houses and legitimatized after relocation.

6.5 Compensation Criteria and Principles

6.5.1 Entitlement

The Project affected persons (APs) who are entitled to receive compensation refer to the persons affected by the involuntary taking of land resulting in (i) relocation or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location. All landowners and users and occupants of houses in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities as well as the cut-off date determined by Wuzhou Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or houses built after the cut-off date determined by the local government will not be compensated.

6.5.2 Compensation Principles

The principle of the compensation and entitlements established for the Project are as follows: (i) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre project standard of living, with the prospect of improvement; (ii) All the APs, with and without certificates, are to be taken into consideration and accounted for; (iii) Compensation should not be paid to those people who occupy land or construct structures and auxiliaries in the project area after cut-off date determined by the local government; (iv) Adequate compensation should be provided to the APs timely; (v) A preferential policy will be provided to vulnerable groups in such things as compensation, housing assignment, transfer and employment; (vi) All the APs will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans and project timing; and (vii) Close monitoring and timely actions will be carried out to identify and resolve any problems

6.5.3 Compensation Rate

6.5.3.1 Permanent Land Acquisition

The permanent land acquisition will be compensated based on category of state-owned land and collective-owned land. Compensation for state-owned land includes compensation for land, auxiliary items and relocation. Compensation for collective-owned land within and beyond ROW will be compensation with different types of land. The compensation standards for the loss of different types of land are as follows:

Table 6-2 Compensation Rate of Collective Land Unit: CNY/mu Resettlement Land Compensation Standing Crops Compensation Rate Output Subsidy Type of Land Value Multiplier Rate Multiplier Rate Multiplier Rate Multiplier Rate (times) (CNY/mu) (times) (CNY/mu) (times) (CNY/mu) (times) (CNY/mu) Collective-Owned Land Paddy land 1,517.80 9 13,660 10 15,178 2 3,036 21 31,875 Dryland 1,290.00 6 7,740 10 12,900 2 2,580 18 23,220 Vegetable 3,424.80 8 27,398 10 34,248 5 17,124 23 78,771 land Fish pond 2,732.12 6 16,393 10 27,321 2 5,464 18 49,179 Wood land 838.50 8 6,708 5 4,193 3 2,516 16 13,416 Garden land 1,326.20 8 10,610 5 6,631 5 6,631 18 23,872 Village Road 13,000 House plot 550 River Bottom 2,064 Land State-Owned Land State-owned 90,000 land

A total of 529 households will receive compensation 2 times in Longxin village. Although the farmers who will loss land within and beyond ROW for ADB-financed road network project and also for urban development projects of WMG, the compensation rates have taken 100% land loss into consideration and calculated based on the agricultural outputs and output values over last three years. The compensation rates are adequate to compensate the loss of the APs. As same compensation rates will apply for both ADB and WMG projects and budget regulation by the government for each specific project, the APs who will lose partial of their farmland agreed to get compensation in two times, which means that they will compensation payment once from ADB-financed road network project first and then from other urban development projects.

6.5.3.2 Demolishment of Residential Structures

For lost house structures and auxiliaries, the compensation rates are presented in Table 6-2 and Table 6-3, respectively. All the compensation rates for structures and auxiliaries will be based on replacement value. The compensation for residential houses will be paid to the APs. Relocation allowance will be provided to the APs at the rate of CNY 3/m2, and housing transition allowance will also be provided to the APs at the rate of CNY 30/m2. The rates are regulated in the document of House Demolishment Compensation and Resettlement Scheme of Development Projects in Hongling Area. The relocation allowance at the rate of CNY 3/m2 will be paid to the APs to subsidize the transfer and transportation costs and the housing transition allowance at the rate of CNY 30/m2 will be provided to the APs who will sign agreement within 30 days from public notification of LAR to the date of agreement signing. As the APs will not move until their new houses are built and the relocation may only take two or three days, the relocation allowance will be sufficient.

Table 6-2 Compensation Rates of Residential House Demolition No. Type of Structures Unit Compensation Rate (CNY) 1 Frame structure m2 470

2 Brick-Concrete m2 420 3 Brick-Wood m2 330 4 Simple structure m2 180 5 Relocation Allowance for m2 3 Private Households 6 Housing Transition m2 30 Allowance Note: Compensation includes the structures ONLY. Compensation for the loss of house plot at CNY500/m2 is separated item for house demolishment in accordance with the “Resettlement Scheme of House Demolishment and Compensation for Construction Projects in Hongling Area”.

Table 6-3 Compensation Rates of Auxiliaries

Item Unit Compensation Rate (CNY) Telephone No. 160 Kitchen No. 5,000 Coal Gas Set 300 Toilet No. 4,500 Cable No. 120 Fence m 50 Door No. 100 Sunning ground m2 50 Aluminum Alloy Window m2 50 Anti-Theft Net with Steel Structure m2 20 Stainless Anti-Theft Net m2 50 Air Conditioner No. 100 Simple Pig and Chicken House m2 100 Ground with Color Clays Brick m2 20 Ground with Endurable Wearing Brick m2 30 Ground with Mosaic Brick m2 15 Ground with Patterned Brick m2 10 External Wall with Mosaic m2 15 External Wall with Strip Patterned Brick m2 30 Tomb (earth)* No. 500 Note: New water meter and electrical meter will be installed in the new building and no compensation will be paid. * Cash compensation will be paid to the APs. In turn, the APs could re-build new tombs at the location where they prefer.

6.5.3.3 Non-Residential House Demolishment

The land acquisition of affected institutions will be compensated at CNY84,000/mu. The structure and auxiliary items will be compensated at CNY9,100/mu. In addition, CNY9,700/mu will be paid as relocation allowance. Subsidy for loss of working time paid to employees is CNY35/day and loss of production stoppage will be paid to the owned at CNY1,500 per institution as regulated by WMG. For the completely or partially relocated institutions and enterprises, no relocation will occur until the new structures or buildings are built. Thus none of the owners and employees will suffer from livelihood and income losses permanently or transitionally, except the loss from a couple of working days or business stoppage during the moving period. The compensation is based on the average loss of 35 days, therefore, it is sufficient to compensate the loss of working days and production or business stoppage.

The land acquisition of affected enterprises will be compensated at CNY303,600/mu. The structure and auxiliary items will be compensated at CNY9,100/mu and will be assessed based on evaluation by qualified real estate evaluation agency on height of buildings, structure,

purpose of usage, external facilities, decoration, etc.. In addition, CNY9,700/mu will be paid as relocation allowance. The relocation allowance for enterprises is much higher than the relocation allowance of private households as it has taken the internal and external facilitates of the enterprises into account, such as pipelines, etc.. Subsidy for loss of working time paid to employees is CNY35/day and loss of production stoppage will be paid to the owner at CNY1,500 per enterprise.

6.5.3.4 Infrastructures

All affected ground attachments, including basic infrastructures and special facilities will be compensated at replacement rate to reflect the current value. Table 6-4 provides the compensation standards of ground attachments.

Table 6-4 Compensation Standards of Ground Attachments Item Unit Compensation Standards (CNY) 10KV electric pole No. 2,500 Steel tower No. 30,000 Power cable (overhead line) m 40 400V Power cable (overhead line) m 40 380V electric polar No. 2,500 20 No. 20,000 30 No. 20,000 50 No. 20,000 80 No. 20,000 100 No. 20,000 125 No. 20,000 160 No. 25,000 180 No. 25,000 200 No. 30,000 Transformer (KVA) size 250 No. 30,000 315 No. 40,000 400 No. 50,000 500 No. 80,000 630 No. 80,000 800 No. 100,000 1000 No. 150,000 1250 No. 200,000 1600 No. 200,000 2500 No. 350,000 Tomb (mud) No. 500 DN15 mm m 50 DN20 mm m 60 DN25 mm m 70 DN40 mm m 80 DN50 mm m 150 Water supply pipe DN65 mm m 100 DN80 mm m 240 DN100 mm m 300 DN150 mm m 450 DN200 mm m 500 DN250 mm m 600 Drainage pipe DN300 mm m 400 DN600 mm No. 600

Item Unit Compensation Standards (CNY) DN1000 mm No. 1,000 DN1200 mm No. 1,200 Communication cable m 20 Communication optical cable m 30 Optical Cable TV Km 30,000 Cable TV Km 20,000 Cable distribution network HH 100

6.5.3.5 Special Policy for Vulnerable Group

The needs and interests of vulnerable groups, special attention will be given to them, particularly the potential difficulties faced by low-income earners in the affected areas in resettlement planning and implementation. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, housing assignment, social security plan, special fund and MLG. Assistances on training with free charge, employment, and micro-credit will be provided to them by the MWG, PMO and IA to restore their living conditions and incomes. During resettlement phase, the women-headed households and disabled and elderly people will be given priority to choose building location and floor.

VII. ENTITLEMENT MATRIX

From the results of inventory surveys, the major impacts of LAR have been identified based on the nature of losses, and an Entitlement Matrix has been prepared as a guide to compensation payments. Compensation for land acquisition, and residential house and non-residential house (institutions and enterprises) demolishment will be paid to all users with or without legal certificates, including APs settled on the land and they are included in the final AP list or are able to prove their occupation of affected plots before the cut-off date determined by WMG. The compensation will be made in the forms of “cash” or “cash plus replacement house at property right exchange” according to the class and type of land and dwellings. The relocated households will also receive a relocation allowance. Compensation for standing crops, auxiliaries and other assets, basic infrastructures and special facilities will also be paid directly to the affected owners. Any income loss from production/sales and wages will be paid in cash to the APs. The loss of institutions and enterprises will also be compensated in cash. Table 7-1 presents the entitlement matrix. The LAR later beyond ROW will follow the same compensation policies and standards. The village collective will retain 30% of the land compensation payment to be used as supplementary financing source to implement income rehabilitation plan, i.e., social insurance for the farmers who loss their land, medical care, support for vulnerable groups, and investment fund.

Table 7-1 Entitlement Matrix

Type of Agency Level of Impact Entitled Persons Compensation Policy & Standards Losses Responsible Permanent State-owned land Wuzhou Municipal Land Reserve Centre Institution land: CNY84,00/mu PMO, IA and land In total,1,288.44 mu of state land (950.39 mu Enterprise land: CNY303,600/mu ROs acquisition road and reserve land, 178.72 mu institution No compensation will be paid for road and reserve (862 rural land and 159.33 mu enterprise land) will be land as it has been acquired and reserved by households acquired permanently for the project. WLRC and owned by the government now. and 3,221 Collective land The affected villages or groups will receive 30% of Compensation rates are CNY 23,220/mu for PMO, persons) 815.56 mu collective-owned land will be land compensation in cash. The APs will receive 70% dryland, CNY 31,875/mu for paddy land, CNY WDSAIMC, acquired permanently for the project, of land compensation, 100% resettlement subsidy and 78,771/mu for vegetable land, CNY 49,179/mu for WLRB, and including 436.56 mu from Longxin Village of standing crops in cash. fish pond, CNY 550/mu for house plot, CNY ROs Hongling Area (45 mu dryland, 25 mu paddy 23,872/mu for orchard land, CNY 13,416/mu for land, 56 mu vegetable land, 101 mu fish wood land, CNY 13,000/mu for village road, and pond, 60 mu house plot and 149.56 mu other 2,064 for river bottom land. land) and 379 mu from Longping Village of Sanlong Area (78 mu dryland, 15 mu paddy land, 53 mu vegetable land, 31 mu fish pond, 12 mu house plot and 190 mu other land). Residential With structure built thereon. 57,187.13 m2 Households All affected APs will be provided with Compensation for the affected structures at full PMO, structures (289 residential structures in total, including (35 cash compensation or cash plus replacement costs of materials and labors with no WDSAIMC, rural 10,646.94 m2 frame, 33,050.29 m2 brick- households replacement house at exchange of deduction for depreciation or salvageable ROs, WLRB, households or concrete, 9,352.06 m2 brick-wood, and without property rights in the planned newly-built materials. The compensation standards for WHDAO, 1,374persons) 4,137.84m2 simple structures. house resettlement sites or other communities structures ONLY are: CNY470/m2 for frame, CNY Changzhou certificates) in the city at APs’ preference . 420/ m2 for brick-concrete, CNY330/ m2 for brick- District 4,984.86 m2 residential structure without wood, and CNY180/m2 for simple structure. For Government, house certificates All users with or without legal house compensation standard for house plot is and VC certificate papers including AP settled on CNY500/m2 for each square meter structure the land after 29/08/98 (Land Law) as demolishment. long as they are included in the final AP list or are able to prove their occupation Households without house certificates will be of affected plots before the cut-off date compensated at the same rates as households determined by WMG. The cut-off date with house certificates. will be determined by WMG in

Type of Agency Level of Impact Entitled Persons Compensation Policy & Standards Losses Responsible collaboration with relevant organizations Relocation allowance will be paid to the APs in involved, including PMO, IA, WLRB, cash at CNY3/m2 and CNY30/m2 for housing WHDAO, and district government. Illegal transition allowance. land-use, construction of temporary structures will not be compensated after the notification of cut-off date. WMG, IA, WLRB and WHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. WMG will publicize the cut- off date on newspaper of “Wuzhou Dairy” and community bulletin board once the date is decided.

Relocation allowance in cash will be provided to the APs Auxiliaries 920 m fences, 371 kitchens, 371 toilets, 371 The APs will be provided cash compensation at Cash compensation will be paid to the APs: PMO, sets of coal gas, 65 households with replacement value. CNY50/m for fence, CNY5,000/each for kitchen, WDSAIMC, internets, 8,050 m2 aluminum alloy window, CNY4,500/each for toilet, CNY300/set for coal gas, ROs, 8,100 m2 anti-theft net with steel structure, CNY120/household for internet, CNY50/m2 for Changzhou 8,750 m2 stainless anti-theft net, 127 air aluminum alloy window, CNY20/m2 for anti-theft District conditioners, 900 m2 sunning ground, 86 net with steel structure, CNY50/m2 for stainless Government, doors, 2,210 m2 simple pig and chicken pens, anti-theft net, CNY100/each for air conditioner, WHDAO, 139 telephones, 6,600 m2 ground with CNY50/m2 for sunning ground, CNY100/m for and VCs colored clay brick, 9,740 m2 ground with door, CNY100/m2 for simple pig and chicken pen, endurable wearing brick, 3,520 m2 ground CNY160/each for telephone, CNY20/ m2 for with Mosaic brick, 1,400 m2 ground with ground with colored clay brick, CNY30/m2 for patterned brick, 2,300 m2 external wall with ground with endurable wearing brick, CNY15/m2 Mosaic, and 3,920 m2 external wall with strip for ground with Mosaic brick, CNY10/m2 for ground patterned brick with patterned brick, CNY15/m2 for external wall with Mosaic, and CNY30/m2 for external wall with strip patterned brick Non-residential With structure built thereon. 5,612.01 m2 non- Affected Cash compensation will be provided to Cash compensation for affected institutions and PMO, structures of residential structures with 338.05 mu owners the affected owners enterprises at full replacement cost. The land WDSAIMC,

Type of Agency Level of Impact Entitled Persons Compensation Policy & Standards Losses Responsible 10 institutions permanent land acquisition (including 178.72 acquisition of affected institutions will be ROs, and 10 mu and 293 APs in affected 10 institutions All users with or without legal house compensated at CNY84,000/mu, the structures Changzhou enterprises and 159.33 mu with 342 APs of affected 10 certificate papers including AP settled and auxiliary items will be compensated at District (635 enterprises) on the land as long as they are included CNY9,100/mu and will be assessed based on Government, employees, in the final AP list or are able to prove evaluation value by qualified real estate evaluation WHDAO including 293 their occupation of affected plots before agency, and CNY9,700 will be paid as relocation persons in the cut-off date. The cut-off date will be allowance. Loss of production stoppage will be affected determined by WMG. The cut-off date compensated at CNY1,500 per unit. institutions and will be determined by WMG in 342 persons in collaboration with relevant The land acquisition of affected enterprises will be affected organizations involved, including PMO, compensated at CNY303,600/mu, the structure enterprises) IA, WLRB, WHDAO, and district and auxiliary items will be compensated at government. Illegal land-use, CNY473,000/mu and will be assessed based on construction of temporary structures will evaluation value by qualified real estate evaluation not be compensated after the agency, and CNY9,700 will be paid as relocation notification of cut-off date. WMG, IA, allowance. Loss of production stoppage will be WLRB and WHDAO could take compensated at CNY1,500 per unit. photos/video of the places on the cut- off date to prevent further influx beyond the cut-off date. WMG will publicize the cut-off date on newspaper of “Wuzhou Dairy” and community bulletin board once the date is decided. Affected Salary loss will be paid to the affected Subsidy for loss of working time paid to APs is PMO, employees employees for loss of 15 working days CNY35/day in 15 stoppage days, with a total of WDSAIMC, during production/business stoppage. CNY525 for each affected employee as regulated ROs, by WMG. Changzhou District Government, and VC Ground 250 10KV electrical poles, 13 steel towers, Affected Owners Cash compensation will be paid to the affected PMO, attachments, 23,613 m power cables, 15,400 m 400V owners: CNY2,500/each for 10KV electrical pole, WDSAIMC, including basic power cables, 500 electrical cables, 145 CNY30,000/each for steel tower, CNY40/m for ROs, infrastructures 380V electrical poles, 3 20KVA transformers, power cable, CNY40/m for 400V power cables, Changzhou

Type of Agency Level of Impact Entitled Persons Compensation Policy & Standards Losses Responsible and special 7 30KVA transformers, 4 50KVA CNY40/m for electrical cable, CNY2,500/each for District facilities transformers, 2 80KVA transformers, 17 380V electrical pole, CNY20,000/each for 20KVA, Government, 100KVA transformers, 2 125KVA 30KVA, 50KVA, 80KVA, 100KVA and 125KVA and VCs transformers, 3 160KVA transformers, 1 transformer, CNY25,000/each for 160KVA and 180KVA transformer, 15 200KVA 180KVA transformer, CNY30,000/each for 200KVA transformers, 8 250KVA transformers, 10 and 250KVA transformer, CNY40,000/each for 315KVA transformers, 10 400KVA 315KVA transformer, CNY50,000/each for 400KVA transformers, 5 500KVA transformers, 6 transformer, CNY80,000/each for 500KVA and 630KVA transformers, 4 800KVA 630KVA transformer, CNY100,000/each for transformers, 2 1000KVA transformers, 3 800KVA transformer, CNY150,000/each for 1250KVA transformers, 4 1600KVA 1000KVA transformer, CNY200,000/each for transformers, 1 2500KVA transformer, 20 1250KVA and 1600KVA transformer, tombs, 29.1 m DN15mm water pipe, 675.6 m CNY350,000/each for 2500KVA transformer, DN20mm water pipe, 76.3 m DN25mm water CNY500/each for tomb, CNY50/m for DN15mm pipe, 24 m DN40mm water pipe, 1,978.64 m water pipe, CNY60/m for DN20mm water pipe, DN50mm water pipe, 65 m DN65mm water CNY70/m for DN25mm water pipe, CNY80/m for pipe, 565.6 m DN80mm water pipe, 2,447 m DN40mm water pipe, CNY150/m for DN50mm DN100mm water pipe, 2,427 m DN150mm water pipe, CNY100/m for DN65mm water pipe, water pipe, 1,263 m DN200mm water pipe, CNY240/m for DN80mm water pipe, CNY300/m for 466 m DN250mm water pipe, 1,655.8 m DN100mm water pipe, CNY450/m for DN150mm DN300mm drainage pipe, 6,089.1 m water pipe, CNY500/m for DN200mm water pipe, DN600mm drainage pipe, 138 m DN1000mm CNY600/m for DN250mm water pipe, CNY400/m drainage pipe, 819 m DN1200mm drainage for DN300mm drainage pipe, CNY600/m for pipe, 63,500 m communication cable, 17,800 DN600mm drainage pipe, CNY1,000/m for m communication optical cable, 13.5 km DN1000mm drainage pipe, CNY1,200/m for optical cable line of cable TV, 25.15 km DN1200mm drainage pipe, CNY20/m for optical cable main line of cable TV, and 648 communication cable, CNY30/m for households cable net of cable TV communication optical cable, CNY30,000/km for optical cable line of cable TV, CNY20,000/km for optical cable main line of cable TV, and CNY100/household for cable net of cable TV

VIII. RESETTLEMENT AND REHABILITATON PLAN

8.1 Objectives and Principles of Resettlement Program

The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: i) Compensation should be paid in cash or physical replacement; ii) Development resettlement is promoted. The livelihood rehabilitation plan will be based on the provision of: a) various employment and income generation opportunities during the Project construction and operation phases; b) development of self-employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry- cleaning house, entertainment and catering services); c) provision of technical training to the APs to increase their skills to be employed in other institutions and enterprises, and d) provision of social insurance to the APs; iii) Implement the resettlement program properly, comply with related compensation policies, and ensure that the production and living conditions of the affected people are increased or at least restored; iv) The resettlement plan should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration; v) The APs should be consulted for the development of the resettlement plan and for the compensation rates; and vi) Women’s rights and interests should be fully taken into consideration of the Project.

8.1 Compensation and Rehabilitation Plan

8.2.1 Resettlement Options and Plan

8.2.1.1 Relocated Households Affected by Residential Structures

The Hongling Area, where the road network is planned, is adjacent to the edge of the urban center of Wuzhou City. It has been listed in the Wuzhou City urban development master plan to be developed as new development zone in the City. Even if without the Hongling Road Network Project, the land and the houses in the Hongling Area will be acquired and reserved by WLRC for the urban development, including the remaining land and structures around the road network. As all collective land in Hongling Area will be acquired either by Hongling Road Network Project or other urban development projects, the proposed relocation plan will take all 353 households within and beyond ROW in Hongling Area as a whole into consideration, including 289 households within ROW and 64 households beyond ROW.

As a result of the Hongling Road Network Project construction, a total of 289 households or 1,374 persons will be relocated, with 57,187.13 m2 of residential structure demolishment. To maintain the APs’ social network, living customs and the continuity of employment, the houses to be affected by the road network will be compensated according to the approval of Wuzhou Municipal Government (No.[2008]15): i) replacement houses with property right exchange plus cash (the main house will be compensated by replacement houses in resettled area and other simple structures and auxiliaries will be compensated in cash); or ii) cash compensation. The APs will be resettled within the original area as much as possible.

According to the latest field survey, 98% of the total 289 resettlement households would like to

choose replacement houses at property exchange plus cash compensation, and 2% (6 households) would like to get cash compensation to purchase commercial or economy houses. Most of the affected households (90%, 260 households) would choose the area adjacent to their original residence area within Hongling Area in order to keep the original life style and social relations, and 10% (29 households) of the affected households, who would buy commercial housing and economy housing in other areas of the City. Table 8-1a and Table 8-1b provide the resettlement choices and the resettlement sites preferred by the affected households.

Table 8-1a Resettlement Choices of the Affected Households Resettlement Choices of the Affected Persons (No.) cash compensation Residential Area + Cash Total households Purchase of Commercial Purchase of Compensation Houses or Economy Houses Economy Houses Total 289 283 3 3 % 100% 98% 1% 1%

Table 8-1b Resettlement Sites Selected by the Affected Households

Resettlement Choices of the Affected Persons (No.)

Total Households Hongling Area Other Sites Private housing Longxin Village 289 283 6 Total 289 283 6 % 100% 98% 2%

For the majority of the APs who would like to be moved into new resettlement areas will be compensated with replacement houses. Two sites have been planned: i) one resettlement area is within 2 km to the back of Longxin No. 1 Group, and another one is 1.5 km to the brewery factory of the military sub-area, both of the areas are close to the original residential area. There was no major impact on the AP’s social life and living environment. A total of 114 mu reserve land will be used for the construction of the resettlement area at the back of Longxin No.1 Group, with 31,560 m2 of building basement area, 158,080 m2 of building floor area, 50 m2 of solid waste collection sites, 50 m2 public toilets, and 96 m2 power distribution house. It is planned that total 310 resettled households can be resettled with four types of houses of A, B, C and D ranging from 60, 70, 80 and 100 m2. For the resettled area close to brewery factory of the military sub-area, it is planned that 43 households can be resettled. The size of the houses will also range from 60, 70, 80 and 100 m2. Table 8-2 provides the resettlement scheme for all households to be affected (including the rest households to be demolished by other urban development projects).

Table 8-2 Resettlement Scheme of All AHs (N=353 households) Area of Distance from Village Group Resettled Site Resettled Area AHs (No.) APs (No.) Original Site to Be Resettled (mu) (km) Back of No.1 Group 95 Longxin Village, 310 1,474 2 of Longxin Group 1 to 10 Brewery Factory of 19 Mutoutuo, 43 202 1.5 Military Sub-area Waixinli, Longping Village, Group 5,6,8 and 9 Total 114 353 1,676

The households whose original residential area range between 50 m2 and 100m2 will be allocated the construction site with the same area. Of the total relocated households, 51 households have residential area more than 100 m2. They can choose two house plots to maintain their original residential area (i.e. they can choose one 60 m2 residential area and another one 70 m2, then make the total residential area equal to 130 m2) For any allocated residential area which is smaller or bigger than original one, cash compensation will be paid to the APs or the APs will pay for the additional area, respectively. This resettlement option will not involve any affordability issue for the APs to get their new houses, and the APs will be ensured that they can obtain equal size and improved quality of houses after relocation. Photo 1 and 2 provide the sample of houses in resettlement area built by the government. Table 8-3 provides the replacement house allocation situation by different income level. The compensation standards and the selection of the replacement houses will be discussed and determined between the APs and the IA.

Photo 1 Photo 2

Table 8-3 Relocation Statistics of AHs by Income level

N = 289 Poor Low Income Middle Income Original Residential Area 50 m2 – 60 m2 7 60 m2 - 70m2 15 70m2 - 80m2 10 8 12 80m2 - 100m2 20 32 > 100m2 45 140 Subtotal 32 73 184 Structure Frame 65 Brick-concrete 36 107 Brick-wood 23 27 29 Simple 2 Subtotal 25 63 201 N = 283 Planned Residential Area in Poor Low Income Middle Income Resettled Site 50 m2 – 60 m3 7

60 m2 - 70 m3 15 70 m2 – 80 m3 10 8 12 80 m2 – 100 m2 20 28 > 100m2 45 138 Subtotal 32 73 178

WDSAIMC, the IA of the road network project will be responsible for ground leveling, road construction, and the supply of water and electricity of the resettlement area as well as the construction of the houses. According to the plan, the surrounding of resettlement areas with the full development of Hongling Area, will be well equipped with services and facilities such as hospital, financing services, business services, public traffic, school and entertainment. The Hongling Area will be built into a new development zone which will be well designed and facilitated, full functioning with comfortable environment, in combination of business, trade, logistics, residence, leisure and entertainment to form the window for opening up of Wuzhou City.

For those 6 households who choose cash compensation, they would like to choose the two options: i) purchase of a commercial house at real estate markets; and ii) purchase an economy house provided by the government as they would like to purchase houses in more centralized downtown area. Their annual family income is higher than other families with average at CNY 40,000 per household. They are affordable for the houses with the compensation money. For the loss of their structures, they will get compensation for house plot at CNY550/m2, plus CNY470/m2 for frame structure, CNY420/m2 for brick-concrete, CNY330/m2 for brick-wood, and CNY180/m2 for simple structure. In total, the APs can get CNY1,020/m2 for frame structure, CNY970/m2 for brick-concrete, CNY880/m2 for brick-wood, and CNY730/m2 for simple structure. If the price of commercial houses is CNY1,800/m2 and they intend to buy houses with 100 m2, they will use CNY102,000 compensation money as down payment and take 15 years mortgage loan for remaining cost of CNY 78,000. Thus they need to pay CNY460 per month as mortgage payment to the banks. It is affordable for them. Therefore they are satisfied with compensation rate. The relocated households can make their choices according to their economic situation and personal preference. For those households who want to get cash compensation, the price of the demolished houses will be based on the evaluation price conducted by qualified real estate evaluation agency. The evaluation of the compensation rates should also include the factors of structures, location, floor area, storey level, decoration, etc.. The APs will be ensured that they can obtain equal size and quality of houses after relocation.

Currently, the price of economy houses in Wuzhou City is CNY900/m2 for frame structure. If the compensation standard is CNY970/m2, the compensation standard for house plot at CNY550/m2 plus CNY470/m2 for demolished frame structure, the total compensation is CNY970/m2, therefore, the APs could fully afford the economy houses with the same area as before. The affected people who choose to purchase commercial houses or economy houses at No. 1 Xinxing Road, No. 2 Xinxing Road and No. 3 Xinxing Road.

During the resettlement process to the resettlement area, some incentive measures and preferential policy will be adopted by the Project, such as for the early signing of compensation agreement within 30 days after the publicizing demolishment. A reward of CNY30 /m2 shall be given for the demolishment of privately owned houses. As for the APs who sign the resettlement and compensation agreement after the publicizing, the priority for them to choose residential area shall be determined upon the order of the signing of the resettlement and compensation agreement.

For safety reason, the demolition of the houses can not be carried out by the resettlers themselves. It should be demolished by the qualified house demolishment agency. However, the materials such as doors and windows can be disposed and re-used by the households themselves. The APs can sale the salvageable materials to make some money.

As for the houses with property right certificates which are to be demolished, the demolisher shall deal with relevant agencies for the property right certificates for the resettlement house; as for those without property right certificates but have been confirmed by village committee, township or district government, the demolisher should assist in the obtaining of the property right certificates for the resettlement house after resettlement and bear the relevant fees, through which the resettlement houses are to be legalized.

The resettlement subsidies shall be allocated based on the floor area of the main house to be demolished, at the standard of CNY3/m2. Housing transition allowance will be provided at the standard of CNY30/m2. The relocation allowance at the rate of CNY 3/m2 will be paid to the APs to subsidize the transfer and transportation costs and the housing transition allowance at the rate of CNY 30/m2 will be provided to the APs who will sign agreement within 30 days from public notification of LAR to the date of agreement signing.

8.2.1.2 Demolishment of Non-residential Structures

Hongling Road Network Project will affect 10 institutions and 10 enterprises. Of the total affected institutions and enterprises, 3 institutions and 1 enterprise will be relocated to another new location with the provision of land plot by WMG. The affected Driving Practice Yard for Traffic Police will be completely demolished and relocated to the Fudian Road, east exit of the city, which is about 5-6 km away from the original place. The Wuzhou Funeral House will be completely demolished and relocated to Longxin Village, Changzhou District, which is about 1-2 km away from original location. The Wuzhou Chicken Breeding Farm will completely demolished and relocated to Pinglang Village, Changzhou District, which is about 2 to 3 km away from original place. The Timber Storage Farm will be relocated to Tangyuan Village, which is about 2 km away from the original place. The relocated institutions and enterprise will be provided with equivalent land plot for re-construction by MWG. It will take about 3 months to 6 months to rebuild the institutions and enterprise. The relocation will not occur before the new structures or buildings are built. Only a couple of working days or production/business stoppage will result from the relocation. The compensation is adequate to meet the loss of income from business. All employees will be re-employed by the same institutions and enterprises, no job loss will be involved. Another 4 institutions and 5 enterprises will be partially affected and the demolished structures will be rebuilt around the original sites without relocation. The reconstruction will take about 3 months. The old structures will not be demolished until the new structures are built. Thus no loss of working days and production/business stoppage is expected except a couple of days loss for moving. In addition, 3 institutions and 4 enterprises will only involve some land acquisition as no structures and attachments are built on the land yet. Another organization, Rose Lake Aquaculture Experiment Pond will get cash compensation without reconstructing the demolished structure and the cash compensation will be used for the upgrading the facilities in the pond. Table 8-4 provides the resettlement plan for the affected institutions and enterprises

Table 8-4 Resettlement Plan of Affected Institutions and Enterprises

Name of Institutions & Nature Resettlement Plan Enterprises Institutions Partial demolishment. The demolished area will be Horticulture Department reconstructed around the original site with the purchase of land plot from WMG Partial demolishment. The demolished area will be Greening Engineering Department reconstructed around the original site with the purchase of land plot from WMG Complete demolishment. To be relocated to the Driving Practice Yard of Traffic Fudian Road, east exit of the city, with provision of Police land plot from WMG. Complete demolishment. To be relocated to Longxin Wuzhou Funeral House Village, with provision of land plot from WMG Partial demolishment. The demolished area will be Agricultural Science Institute reconstructed around the original site with the purchase of land plot from MLG Complete demolishment. To be relocated to the Wuzhou Chicken Breeding Farm Pinglang Village, with provision of land plot from State-Owned WMG Partial demolishment. Cash Compensation without Rose Lake Aquaculture Experiment reconstruction. The APs will be redeployed in the Pond same organization No structures and attachments built on the land. Cash School of Finance compensation will be paid to the owner No structures and attachments built on the land. Cash Military Sub-branch compensation will be paid to the owner No structures and attachments built on the land. Cash Nursery Station compensation will be paid to the owner Enterprises Longxin Supply and Marketing The demolished area will be reconstructed around the Shareholding Company Cooperatives original site with the purchase of land plot from WMG The demolished area will be reconstructed around the Shareholding Company Animal Production Farm original site with the purchase of land plot from WMG To be relocated to Tangyuan Village, with provision of Shareholding Company Timber Storage Farm land plot by WMG The demolished area will be reconstructed around the Private Enterprises Longxin Water Supply Plant original site with the purchase of land plot from WMG Shareholding No structures and attachments built on the land. Cash Telecom Co. Company compensation will be paid to the owner No structures and attachments built on the land. Cash Private Enterprises Bus Co. compensation will be paid to the owner Synthetic Sugar Machinery No structures and attachments built on the land. Cash Shareholding Company Manufacturing Co. compensation will be paid to the owner No structures and attachments built on the land. Cash Shareholding Company Sanlian Auto Repair Co. compensation will be paid to the owner The demolished area will be reconstructed around the Shareholding Company Herbal Market original site with the purchase of land plot from WMG The demolished area will be reconstructed around the Shareholding Company Maoshan Warehouse original site with the purchase of land plot from WMG

8.2.2 Rehabilitation Plan for Affected Households

The overall objective of income rehabilitation plan is to ensure that all APs losing their means of livelihood (in this case their land or working place) to the project are able to at least maintain their pre-project levels of income and living standards. The income restoration plan apples to whole of Longxin village and will rehabilitate 534 plus another 534 farmer households. As a result of the Hongling Road Network Project and other urban development projects in Hongling Area, 534 households will lose 100% of their land and 100% of their agricultural income. The household survey indicates 30% and 35% of the household’s income comes from agricultural activities in Hongling Area and Sanlong Area, respectively. The APs are also working as seasonal workers, working in downtown area or doing small business. Most of labor forces aging between 18 and 40 have education level equivalent to or above that of junior middle school. Most of their income comes from commercial activity and working as migrant workers. According to the income survey, the average net income of the APs from the land loss in the project area is CNY2,390 per capita for Longxin Village and CNY1,860 per capita for Longping Village in 2007.

Since the Hongling Area will be completely developed. All APs will no longer be involved in agricultural activity any more. Losing land and working place will not only have impact on the livelihood of these AP households, but also affect their future employment. The income rehabilitation plan has taken all APs into consideration. Of the total affected 1,793 persons in Longxin Village and 1,428 persons in Longping Village within ROW, the labor force is 2,206 persons (1,228 APs in Longxin Village and 978 APs in Longping Village), who will need income rehabilitation. Beyond ROW, of the total affected 1,428 persons in Longxin Village, the labor force is 978 persons, who will also need income rehabilitation. Jobs will be coordinated as and when theur land is taken. Based on the surveys and consultations, the APs hope the WMG would provide assistance in providing job opportunities and technical training to them. The following income rehabilitation measures are recommended to be carried out to improve their income: i) providing technical skill training and employment opportunities to the APs, especially for the job requiring large amount of labor forces; ii) development of service and tertiary industry, such as cloth selling, grocery store, transportation, logistic service, community service, maintenance and repair of motorcycle, vehicle, and electronic products, beauty and hairdressing, laundry service, catering and entertainment, domestic servant services, moving company as well as other services; iii) provision of social insurance; and iv) providing employment opportunities generated by the construction and operation of the road network project. The survey result indicates that of all the APs, 90% are reluctant to continue with the agricultural activities, 60% would like to improve skill and ability through training to find job, such as secretary, sales and technical workers, and 40% of the APs are willing to start small business, for instance grocery store, domestic servant service, food and catering service, etc.

8.2.2.1 Employment Opportunities in Hongling Area

With the implementation of the urban development projects in Hongling Area, more job opportunities will be created and employment priority will be given to the affected larbor force. Table 8-5 provides the annual job opportunity and estimated salary of the potential job position in next five years. The WMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions. For the 2,206 persons in labor force within ROW, the APs will get employment before or immediately after they lose their land. The government will assign the quotas to the owners of the job positions to ensure that the APs will be able to secure such jobs. In comparison with their income from agricultural farming at CNY3,402 per household in Longxin Village and CNY3,089 per household in Longping Village, the income of the APs from the jobs available in Table 8-5 will be much higher than before land acquisition. In addition, the land will be acquired in phases, and the APs will get compensation in phases.

Table 8-5 Annual Job Opportunities Created by Road Construction and Urban Development in Hongling Area

Average Annual Job Monthly Income Annual Income Type of Job Remark Opportunities Earning (CNY) Earning (CNY) (No.) Construction and Mainly for the house construction and 2,000 2,000―4,000 18,000―36,000 indoor decoration road construction Job opportunities include cleaning, Railway Station security guard, ticket inspector, 600 1,200―1,500 14,400―18,000 worker guard, porters, etc. in the Railway Station Shops inside the Railway Station or Shop assistant 800 1,500―2,000 18,000―24,000 along the street Passenger transport and cargo Transportation 300 2,500―3,000 30,000―36,000 transport in Wuzhou City, or taxi drivers Service 2,000 1,400－2,000 16,800－24,000 Food and catering service, hotel Office clerk 1,500 1,500－2,500 18,000－30,000 Working for the companies Hair dressing, clothing, grocery store, Other business 2,000 1,500－3,000 18,000－36,000 maintenance and repair Total 9,200

Luoyang-Zhanjiang (Luo-Zhan) Railway passes though Hongling Area in the west. The Wuzhou Railway Station is located in Hongling Area and will become the second largest railway station along Luoyang-Zhanjiang Railway. The construction of Wuzhou Railway Station will boost economic growth of Wuzhou City in terms of logistics development, including passenger-flow and cargo-flow. The Zhanqian Street in front of the Railway Station runs through the Hongling Area from south to north. Sanlong Street runs through the Hongling Area from east to west, connecting to the No.3 Xijiang River Bridge. Both streets will bring great commercial opportunities for Hongling Area where will become a hot commercial zone and newly-developed urban area with high quality commercial, business, logistics, residential and entertainment facilities. The construction of Hongling Road Network will benefit the APs by creating lots of business and job opportunities.

By the end of 2008, it is expected that the new constructed Luo-zhan railway station will employ

200 affected labor force with average salary of CNY12,000 annually per capita, including 100 for goods transportation, 30 for cleaning service, 35 for grocery store and 35 for miscellaneous works. In addition, with the operation of the railway station, 5 logistics and storing companies to be established can employ 145 labor force with annual salary of CNY9,600 of engagement in goods transportation (70 persons), management officers (50 persons) and safeguard (25 persons). In addition, another 250 jobs will be provided to the APs for food and catering services with annual income at about CNY16,000. In total, the above mentioned enterprises can engage 345 labor forces. After 2008, about 1,800 labors will be hired annually for the position mentioned in Table 8-5 in next 5 years. The WMG will guarantee to provide the above mentioned employment opportunities to the APs,

8.2.2.2 Development of Service and Tertiary Industry

Longxin Village While the implementation of Honglong Road Network project, the urban development projects will also be implemented at the same time. According to urban development master plan, all of the farmland in Hongling Area will be acquired completely either by the road network project or other urban development projects. As a result, the APs will lose 100% of their agricultural land and annual agricultural income at CNY3,402 per household. No land will be reallocated.

According to the survey conducted among the APs, 40% or 1,273 APs (including 882 APs within ROW and 391 APs beyond ROW) wanted to use the resettlement compensation as seed money to develop the secondary and tertiary industries. Women are more suitable for the above-mentioned employment and income generating opportunities. Actually they account for about 32% of the labour force, they will benefit the same from the income rehabilitation program as men. After the affected villagers get their compensation payment, they will be engaged in the new businesses in Hongling Development Zone. During the arrangement of new employment opportunities, WMG pays great attention to the production resettlement of the affected women, especially the establishment of business for “hairdressing salon”, “dry-cleaning house”, “restaurant”, etc. which are very suitable for the employment of women. Based on the socioeconomic survey and discussion/consultation results with the APs, the affected villagers will set up “grocery store” (6 households/20 APs), “food catering service” (29 households/ 97 APs), “hairdressing salon” (12 households/40 APs), “dry-cleaning house” (5 households/17 APs), and “motor transportation service ” (137 households/460 APs) to rehabilitate the loss of income from agricultural farming. Since the APs will be receiving a sum of CNY 25,071 on an average who are severely affected (534 households), the amount is sufficient for them to start a new business. The APs will use the compensation payment to establish their new business which is expected to take about two months. The income of the APs to be generated from the new businesses could be stabilized two months after the opening of the businesses. They will use 80% of the compensation payment (CNY 20,000/household) to invest in their new businesses and the remaining 20% or CNY 5,000/household will be used as circulating fund or for education of their children.

The WMG have agreed to provide space to the APs to start new businesses in the commercial district of the central town which are close to the affected area of the APs. The space rental costs will be paid by the APs. The new location has large flow of population and big demand for the services of second and tertiary industries provides good prosperity of market for the APs. They need to pay about CNY 300 to CNY 800 per month for renting the space depending on the size, quality and location of the shops. The rental shop spaces will be provided to the APs immediately after their land is acquired.

For the “grocery store””, the initial investment for each business establishment is CNY 15,000, of which CNY 5,000 is used for annual space rental cost and CNY 10,000 for purchase of goods. It is expected that the number of customers will be about 23 persons per day and the average expense is CNY 8.0/day. As a result, the annual gross income is CNY 30,660. With deduction of the total annual expenditure at CNY 18,200 including CNY 5,000 as annual rental cost , CNY 1,200 as water and electricity charge (CNY 100 per month equivalent), CNY 12,000 as purchase of goods (CNY 1,000 per month equivalent) from the gross income, the annual net income generated is expected to be CNY 12,460. For the households, their annual income loss from the farmland is CNY 3,402 per household. Thus, the income generated from the “small- scale supermarket” business could result in additional CNY 9,058 per household per year over the income level before permanent land acquisition.

For the “food catering service” employment option, the total initial investment is CNY 20,000, of which CNY 10,000 is used for annual space rental cost, CNY 5,000 for purchase of equipments, and CNY 5,000 for circulating fund. The estimated number of customers is 25 persons and the average expense of the business is CNY 5.00 per day. As a result, the total annual gross income is CNY 45,000. With deduction of the annual total expenditure at CNY 24,000 , including CNY 10,000 as annual space rental costs , CNY 5,000 as water and electricity charge (CNY 400 per month equivalent), CNY 8,000 as the purchase of goods (CNY 800 per month equivalent), the annual net income will be CNY 21,000 (CNY 1,300 per month equivalent). For the households, their annual income loss from the farmland is CNY 3,402 per household. Thus, the income generated from the “food catering service for bus drivers” business could result in additional CNY 17,598 per household per year over the income level before permanent land acquisition.

For “hair-dressing salon” option, the total initial investment is CNY 20,000, including CNY 6,000 as annual space rental cost, CNY 5,000 as purchase of facilities, CNY 2,000 as cost of room renovation and decoration, and CNY 7,000 as circulating fund. The average expense spent on customers for hair-dressing salon is CNY 20.00 and the number of customers is 5 persons per day, the total annual gross income will be CNY 36,500. With deduction of total annual expenditure at CNY 18,000, including CNY 6,000 as annual space rental cost, CNY 7,000 as water and electricity charge (CNY 600 per month equivalent), and CNY 5,000 as the purchase of goods (CNY 1,100 per month equivalent), the annual net income is CNY 18,500. For the households, their annual income loss from the farmland is CNY 3,402 per household. Thus, the income generated from the “hair dressing salon business could result in additional CNY 15,098 per household per year over the income level before permanent land acquisition.

For “dry-cleaning house” option, the total initial investment is CNY 20,000, of which CNY 10,000 is used for annual space rental cost and CNY 10,000 for the purchase of equipments. The average expense for dry-cleaning house is CNY 10.00 per person and the number of customers is 17 persons per day. The total annual gross income will be CNY 60,000. With deduction of the total annual expenditure at CNY 35,000 , including CNY 10,000 as annual space rental cost , CNY 15,000 as water and electricity charge (CNY 1,300 per month equivalent), CNY 10,000 as the cost for purchasing goods (CNY 800 per month equivalent), the annual net income will be CNY 25,000. For the households, their annual income loss from the farmland is CNY 3,402 per household. Thus, the income generated from the “dry-cleaning house” business could result in additional CNY 22,598 per household per year over the income level before permanent land acquisition.

For the “motorcycle transportation service” option, the total initial investment required is CNY 15,000, of which CNY 8,000 is used for the purchase of buses and CNY 7,000 for the cost of

the business charge. The transportation price is set at CNY 3.00 per person. It is estimated there are 20 passengers everyday. The total annual gross income will be CNY 21,000. With the deduction of total annual expenditure at CNY 12,000 including CNY 2,000 as annual management charge, and CNY 10,000 as gasoline consumed. For the households, their annual income loss from the farmland is CNY 3,402 per household. Thus, the income generated from the “motorcycle transportation” business could result in additional CNY 5,598 per household per year over the income level before permanent land acquisition. The engagement of the APs in the secondary and tertiary industries is presented is summarized in Table 8-6.

Table 8-6 Engagement of the APs in Secondary and Tertiary Industries

No. of AHs (APs) to Be Initial Investment Expected Net Income Type of Business Engaged (CNY) (CNY/Year) Grocery Store 6 (20) 15,000 12,460 Food catering service 29 (97) 20,000 21,000 Hairdressing salon 12 (40) 20,000 18,500 Dry-cleaning house 5 (17) 20,000 25,000 Motor transportation service 137 (460) 15,000 9,000

TOTAL 189 (634)

Longping Village

The land acquisition of Hongling Road Network will affect 328 households or 1,428 persons in Longping Village. The APs will be receiving a sum of CNY 33,292 on an average per household, including 213 households losing less than 10% of their land, 75 households losing 10% to 30% of their land and 40 households losing 30% to 50% of their land. For the 213 households losing less than 10% of their land, their annual income loss is about CNY 310 on average. The average land compensation is CNY12,300 per household. A total of 90 households plan to open a retail clothing store with investment of CNY12,000. The annual rental cost will be CNY8,000 and CNY4,000 for purchase of clothes. It is expected that each day 10 clothes will be sold at the average gross profit of CNY20/each. As a result, the annual gross income is CNY 42,000. With deduction of annual expenditure at CNY 23,000, the annual net income is expected to be CNY19,000. Another 100 households plan to find jobs as workers in transportation sector in Hongling Area for passenger transport and cargo transport and as taxi driver. The annual income is expected at CNY33,000. They will use the compensation money to pay for the education of their children and household utilities. The remaining 23 households together will invest CNY283,000 to open a day care center in the host resettlement area. They will receive 100 children. The rental space will be 1,000 m2 with annual rental cost at CNY200,000. The expected annual income at CNY720,000. Each AP will get monthly salary as employee of the day care center at CNY1,200. With deduction of annual total expenditures at CNY 280,000. The center can make CNY108,800 net annual profit and the APs can share the profit as dividend.

For 75 households or 127 APs losing 10% to 30% of the farmland, their annual income loss from farmland is CNY 750 on average. The average land compensation is CNY 37,000 per household. Of the total 75 households, 10 households plan to open small business of “typing and copying shop” with investment of CNY30,000. The annual rental cost is about CNY8,000. The equipment purchase will cost CNY12,000. It is expected that 20 customers will be received each day. The average expense is CNY 10 per customer. The estimated total gross annual income is CNY42,000. With deduction of total annual expenditure at CNY30,000, the annual net income will be CNY 12,000. Another 20 households plan to learn motorcycle repairing technical

skills and run repairing business. The total initial investment is about CNY15,000, of which CNY8,000 will be used for the purchase of equipments and tools. The charge for repair is set at CNY6.00 per person. It is estimated 20 customers each day. The total annual gross income will be CNY 25,200. With deduction of annual expenditure at CNY 15,000, the estimated annual income of CNY10,200. The remaining 45 households will learn fruit planting techniques and introduce and sale new improved fruit species with compensation. The initial investment is about CNY 12,000 for producing species and CNY18,000 for distribution cost. It is expected that each package of species cost at CNY2. A total of 30,000 packages of the species will be produced and sold. With deduction of total expenditures of CNY40,000, the expected annual net income will be CNY20,000.

For 40 households or 171 APs losing 30%-50% of their land, the labor forces are 117. Their annual income loss from farmland is CNY 1,200 on average. The average land compensation is CNY45,000 per household. Of the total 117 labor forces, 50 APs plan to find jobs in jewelry processing and jobs in the related factories. The annual salary will be CNY9,000 per capita. In total, 35 young persons would like to learn hotel management and serve in the new hotel to be opened in new Hongling Area next year. The estimated annual salary will be CNY12,000. The remaining 32 labor forces plan to find job in the large-scale supermarket to be opened in new Hongling Area in next year with the income estimation of CNY8,400/year per capita. WMG will coordinate with relevant departments including the owners of the job positions, labor and social security bureau and district government to make necessary arrangement and guarantee that these APs will find jobs in jewelry processing industry, hotels, and large scale supermarket. The IA and MWG will be responsible to ensure that the APs after training will be employed.

Of the total 1,428 APs beyond the ROW, 978 persons are in labor force. To rehabilitate their livelihood and income, the choices and options of rehabilitation for them will be similar with the ones for those within the ROW. WMG will coordinate with relevant departments including the owners of the job positions, labor and social security bureau and district government to make necessary arrangement and guarantee that these APs will fill in the jobs as provided in Table 8- 5. The APs beyond the ROW will undertake similar activities like the others within the ROW in Longxin village. The detailed number for each type of job will be finalized between WMG and each project owner.

8.2.2.3 Social Insurance

In addition to the above proposed income rehabilitation measures, Wuzhou City Government will provide social security system for rural APs in terms of social pension insurance, medical insurance and employment insurance to ensure the livelihood of the APs. A Rural Poverty Minimum Living Guarantee System has been established and implemented in Wuzhou City in November 2006 (see Wuzhengfa [2006] No.42). In April 2007, the Party Committee and Government of Guangxi Zhuang Autonomous Region made decision that Changzhou District of Wuzhou City was set as trial district of Rural APs’ Employment Training Program, which has been fully implemented in Changzhou District. The Guangxi Zhuang Autonomous Region Government issued ‘Method on Implementing Social Security System for Rural APs in Guangxi Zhuang Autonomous Region (Trial)’ in March 2008. Wuzhou City People’s Congress has passed ‘Method on Implementing Social Security System for Rural APs in Wuzhou City (Trial)’ in June 2008, which states clearly on issues relating to the social pension insurance, medical insurance and employment insurance for rural APs whose land is acquired

In light with the Method, the social insurance fund for rural APs will be raised from APs, collective and local government, among which the percentage contributed by APs and collective

will be no more than 70% and the percentage contributed by local government will be no less than 30%. The contribution of APs and collective mainly comes from land compensation payment. The contribution of local government comes from income generated from the state- owned land use rights transfer. Rural APs who participate in the social insurance and perform the obligation of payment will enjoy pension per month after the age of 60.

The rural APs will be covered by the local medical care insurance according to the residence management principle. The rural APs whose registration has been changed to unemployed urban residents will be covered by urban residents’ basic medical care insurance. The rural APs whose registration remains the same as before will be covered by new-type cooperative medical care system. Migrant workers who are still registered as rural residents as well as urban employers who are registered as urban residents will be covered by urban residents’ basic medical care insurance. Self-employed will also be covered by urban residents’ basic medical care insurance. Furthermore, APs who live under the urban residents’ MLG or rural poverty MLG will be covered by local urban residents’ MLG scheme or rural poverty MLG scheme.

The APs of the Project and the APs to be affected by other urban development projects will be covered by social insurance according to the ‘Method on Implementing Social Security System for Rural APs in Guangxi Zhuang Autonomous Region (Trial)’ issued in March 2008. Wuzhou City People’s Congress has passed ‘Method on Implementing Social Security System for Rural APs in Wuzhou City (Trial)’ in June 2008. The detailed rules and calculation formula will be formulated according to the policy issued by Wuzhou City Government in near future. Upon its completion, the detailed rules and calculation formula for the Project will also be formulated. For the social insurance, the Government at national, provincial and municipal levels will contribute 30% of the total amount and the AP and affected village will contribute 70% of the total amount. Although the specific benefits have not been publicized up to date yet, MWG will guarantee that the amount for the APs to receive will be sufficient to meet the average living standards of the city. For the medical insurance of Class I, a total of CNY 150/person/year will be contributed for, including CNY110/person/year from individual, CNY40 from government at national (CNY20), provincial (CNY10) and municipal levels (CNY10). For the medical insurance of Class II for elders over 60 years old and disabled, a total of CNY 140/person/year will be contributed for, including CNY40/person/year from individual, CNY100 from government at national (CNY50), provincial (CNY25) and municipal levels (CNY25). For the medical insurance of Class III for those living under MLG and seriously disabled students and children, a total of CNY 60/person/year will be contributed for, including CNY20/person/year from individual, CNY40 from government at national (CNY20), provincial (CNY10) and municipal levels (CNY10). The medical costs of the APs could be covered by the medical insurance as follows:

- Over CNY 100 to CNY1,000: 50% from the individual and 50% from the government; - Over CNY 1,000 to CNY5,000: 40% from the individual and 60% from the government; - Over CNY 5,000 to CNY10,000: 30% from the individual and 70% from the government; - Over CNY 10,000 to CNY30,000: 20% from the individual and 80% from the government; and, - Over CNY 30,000 to CNY40,000: 10% from the individual and 90% from the government.

8.2.2.3 Investment of Land Compensation Fund by VC

According to relevant regulation on rural land acquisition, the land compensation payment is mainly used for the production and livelihood of rural APs. Of the total land compensation, 30% will be kept at village committee level, and the rest 70% will be paid to the APs directly. As a result, CNY13.38 million will be paid to Longxin VC and CNY 10.91 million to Longping VC.

Though, the amount of land compensation payment kept at village committee level do not account for large proportion of the full land compensation payment, it will be used as supplementary financing source in the implementation of income rehabilitation plan, including 20% (CNY 2.676 million) will be used for family planning and medical care, 50% (CNY 6.69 million) for social insurance, 10% (CNY 1.338 million) for supporting vulnerable group, and 20% (CNY2.676 million) for investment fund. How to use the fund and its eligibility will be based on the agreement of one-third of the villagers.

The detailed land compensation payment utilization plan will be decided after thoroughly consultation with AFs. It is necessary to mention that the fund for family planning will be used for medical care of women and the construction and maintenance of public facilities. The investment fund will be used to support beginners to set up their own business. The implementation of the above-mentioned plan will be under supervision of the village committee and the information on fund utilization and implementation will be disclosed to all villagers. The APs may invest the compensation payment as share of collective cooperative or company of the village committee and share the dividend.

With the proper implementation of the above mentioned mitigation measure, the living standard and income level of APs will be improved. Survey of 600 rural labor force in the affected families indicates that after resettlement, the income of the APs will have significant increase.

Table 8-6 Survey on Income Rehabilitation (Participants: 600 rural labour forces)

Before Resettlement After Resettlement No. of No. of Initial Production Surveyed Annual Net Monthly Annual Net Surveyed Investment Value (CNY Rural Labor Occupation Income Occupation Rental Cost Income (CNY HHs (CNY 10,000/year) Forces (CNY) (CNY) 10,000) 10,000) 60 Setting up grocery stores (about 20 m2, located in 1 500 8 60 Farming 3,000 1.2 - 1.6 land area of Class II) 62 Farming Setting up catering shops (about 80 m2, located in 2 1,000 15 62 3,000 3 - 3.5 land area of Class II) 50 50 Farming 3,000 Repairing (electric product) 0.8 500 3.6 1.5 - 2 35 35 Farming 3,000 Cleaning 0.1 2 1.2 - 1.4 10 10 Farming 3,000 Holticultural workers 1 - 1.3 20 Farming Setting up clothing shops (about 30 m2, located in 5 800 20 20 3,000 1.5 - 1.8 land area of Class II) 55 55 Farming 3,000 Transpiration (goods) 5 25 3 - 3.5 28 Farming Setting up beauty and hairdressing salon (about 30 2 800 4 28 3,000 1.6 - 2 m2, located in land area of Class II) 34 34 Farming 3,000 Domestic servant service 0.1 1.4 - 1.6 55 55 Farming 3,000 Indoor decoration workers 0.2 2.5 - 3 10 10 Farming 3,000 Waste recycling workers 0.5 8 1.6 - 1.8 150 150 Farming 3,000 Work in enterprises after technical training 0.1 1.6 - 1.8 31 31 Farming 3,000 Fruit store 0.2 1 - 1.2 In total: 600 persons in labour forces

Note: One person in labour force was surveyed from each surveyed household.

8.2.2.4 Project Related Income Generation Opportunities

During the project construction phase, APs can seek some income generation opportunities, mainly providing services related to the Project construction, such as renting spare houses (if available) to the construction contractors as temporary office or to the construction workers as residence, operating grocery kiosks, and providing food, cigarettes and breweries to the construction teams. Also during the construction period, the PMO and IA will offer some temporary employment job opportunities, such as excavation for pipeline and structures and soil and earth transportation.

During the project operational period, the APs with suitable qualifications will be employed and receive on-the-job training. Women and the poor will be given priority to be employed by the project. After the constructions of the resettlement site have been completed, it is planned that 120 public welfare position jobs shall be provided for the APs based on discussion with the IA: 40 landscape workers, 30 road maintenance, 10 safeguard and 40 cleaners. The ratio of employment for men and women will be 1:2. The salary will be between CNY600 to CNY1,200 per month. As a result, the APs could get access to additional income generation opportunities and additional income. Therefore, the APs will benefit from the resettlement of the Project.

8.2.2.5 Provision of Technical Training to the APs

In recent years, with the rapid development of Wuzhou City’s economy and the establishment of the Wide North Bay Economic Development Zone, the formation of the three-dimensional transportation grid and increased speed of industry transfer in eastern area, Wuzhou City has become the joint that connect the Wide North Bay Economic Development Zone and Wide Pearl River Delta. In the near future, there will be a lot of processing industries move to Wuzhou City, promoting the development of logistics, service industries and tourism. All these will bring in about 30,000 to 40,000 employment opportunities to the city. The technical workers and service labors will be in shortage.

In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the ROs and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The technology training will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted.

By taking into consideration of the low education status and lack of working skills for the major labor force of the affected households, especially women, the IA will ensure that at least 50% of the trainees will be females. After training of occupational skills, the APs could get jobs in the city. A total of CNY100,000 has been budgeted as training cost to cover the cost of training provided to the APs.

The training will be carried out twice a year, commenced from January 2009 and last till September 2012. The training will be implemented in association with local district government, VC, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, at least 50% of women should be included. The training includes:

(1) Public security guard, cleaning, public aesthetic landscaping, maintenance of public facilities, management of parking lot, and others;

(2) Horticulture, sewing and knitting, beauty and hairdressing; (3) Maintenance and repair of motorcycle, vehicle, and electronic products; (4) Car decoration and management of cleaning and washing accessories; (5) Food and catering services, and domestic servant services; (6) Sales of products, small business registration and operation; and, (7) Technology on synthetic gemstone processing.

Table 8-7 Training Programs for APs within and beyond ROW (Labor Force=3,184 persons)

Training Training of No. of Average Annual Training Type of Job Period Labour Jobs Monthly Income Remark Institute (month) Forces Available Income (CNY) (CNY) (No.) Community 2 Community or 150 200 1,200 14,400 Community security jobs vocational guard, cleaning, technical landscaping for public school environment, maintenance of public facility, parking lot management, etc Technical jobs 3-6 Vocational 300 350 2,400 28,800 Technical training on technical maintenance and school repair of motorcycle, vehicle, and electronic products Jobs for 1 Community, 72 110 1,200 14,400 Babysitter, domestic women WF servant, nurse Jobs for labor 1 Community, 100 100 1,000 12,000 Special jobs provided forces aging WF by the Government over 40 or 50 Technical 3-6 Vocational 1,200 2,000 1,600 19,200 Employers of factories Worker technical school Business 2 Industry 250 Random 2,500 30,000 Business association, vocational technical school Service jobs 0.5－1 Vocational 1,112 Random 1,400 16,800 Secretary, hotel, food technical and catering school Total 3,184

8.2.2.6 Rehabilitation Plan of Ground Attachments

The compensation of ground attachments, including infrastructures and special facilities will be based on the replacement value as stated in ‘Wuzhengbanhan[2008] No.15’. Compensation in cash will be paid to the affected owners to reconstruct the ground attachments.

The units with property rights will be in charge of the rehabilitation and reconstruction. The rehabilitation measures of the ground attachments should be planned in advance. In practical

operation, these measures should be suitable to local conditions to ensure safe, efficient, timely, and accurate, and try to minimize impacts on the local residents.

For the relocation of affected municipal infrastructures and special facilities, the relocation should be carried out according to the project construction maps and drawings. The relocation of the affected municipal infrastructures and special facilities should be reduced as much as possible on the premise that the constructions do not affect the residents in the right of way (ROW). Reconstruction and rehabilitation should be undertaken first, then demolishment.

8.2.3 Rehabilitation Plan of Institutions and Enterprises

Of the 20 affected institutions and enterprises, the loss of building plot and structure will be compensated according to the regulated standards in cash or cash plus replacement land. Thus the loss will be mitigated. During the transitional periods, the loss of production and business stoppage for the affected institutions and enterprises and loss of working days for employees will be compensated. It is expected that the transitional period of relocation is expected to range from one week to a maximum two weeks. As a result, a maximum of 15 days of temporary job loss in total will be provided to each affected employee. A total of CNY1,500 at lump sum will be paid to each affected institution and enterprise to compensate the loss of temporary production and business stoppage during transitional period. In addition, the old structures will not be demolished until the new buildings have been constructed in the resettlement site. Therefore, it is expected that the impacts to the institutions and enterprises is minimum and could be manageable.

Of the total affected institutions and enterprise, except temporary production and business and income loss which will be compensated as mentioned above, no other income losses will be resulted from the relocation. The APs in the institutions and enterprises will maintain their original positions and status and receive the fix salaries as before after resettlement. Therefore, no income change is expected to the institutions and enterprises and the employees.

8.2.4 Special Concerns during Resettlement Process

8.2.4.1 Gender Issue

According to the Chapter of “Women and Economy” documented in Women’s Development Plan of Guangxi Zhuang Autonomous Region (2001-2010), it clearly stated that “The rights of women for work should be protected, it should be ensured that women enjoy the equal right with men on economic resources, the discrimination to women should be forbidden, women and men should have equal status for employment, and women’s labor rights should be protected”. Thus, women have equal entitlement and rights with men for employment and training in the Project.

The household surveys showed that women from AP families are generally lacking of working skill other than housework skill. They are in inferior position of looking for job opportunities when competing with men. They usually work outside as seasonable labors or run a small business. Women take more responsibility for the family especially for those with female as the head of a household. The future welfare of women to be affected is important. Therefore, special attention will be paid to women’s special concerns, such as compensation payments, training programs, and other assistances, to reduce any special social risks caused by the implementation of this Project.

Women will be eligible, on an equal basis, for all compensation payments, training programs

and other assistances to be provided. The houses to be purchased or allocated for resettlement should belong to both wife and husband of a household. In order to protect the properties of the APs, both the names of wives and husbands should be written on the property certificates of houses. In order to ensure this, the EA will carry out explanation and propaganda work to the community women and closely involve them in the resettlement process.

In addition to income support, other relevant measures will be adopted by the Project. Currently the Women’s Federation (WF) of Wuzhou City has initiated at least three programs - “sunshine training program”, “4050 employment training program” and “micro-credit program”. The IA, ROs, WF, and VCs have reached agreement that WF will involve in guiding consultation and public participation for income rehabilitation activities in combination with their current ongoing programs so that female APs can make sufficient earnings for a sustainable livelihood after house demolition.

8.2.4.2 Assistance to Vulnerable Households

Of the total affected, 32 households or 87 persons, including households enjoying five guarantees, households living under poverty line, households with disabled members and households with female head, are identified as vulnerable groups during the measurement and socioeconomic surveys during ADB PPTA phase. The local Civil Affair Bureau and Human Resource and Social Security Bureau will be responsible for including these households into the social safeguard program. The local Civil Affair Bureau will provide CNY195/month·person to these vulnerable households. A minimum earning of CNY580/month is guaranteed if the vulnerable households could find jobs generated by the Project. The following provisions will be provided to vulnerable groups to rehabilitate their income: 1) training without charge will be provided to them to increase the knowledge and skills of the vulnerable groups; 2) provision social safeguard program; 3) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; 4) and provision of micro- credit to them.

During the relocation stage, the IA and local government will provide in-kind assistance for the vulnerable groups in the following aspect:

- For the elderly or disabled, priority should be provided to them during the selection of the location and floor of the resettlement buildings; - Provide labor and transportation assistance to the vulnerable groups without charge.

IX. COST ESTIMATES

9.1 Compensation and Resettlement Costs

The resettlement costs are included in the overall budget of the Project. The total cost of resettlement for the Project is estimated to be CNY 255.4 million, equivalent to US$ 36.49 million in 2008 prices, including 15% contingencies (physical and price). The estimated costs include compensation for residential structures and auxiliaries, non-residential structures, basic infrastructures and special facilities, other costs, land-related taxes, and contingencies. The detailed cost estimates of resettlement within and beyond ROW are presented in Table 9-1a and Table 9-1b, respectively. The summary cost is presented in Table 9-2.

Table 9-1a Detailed Cost Estimates of Resettlement within ROW

Unit Price No. Item Unit Quantity Cost Estimate (CNY) (CNY) 1 Permanent Land acquisition 154,678,630 1.1 State-owned land mu 1,288.44 130,370,855 1.1.1 Institution land mu 178.72 18,163,291 1.1.1.1 Land compensation mu 178.72 84,000 15,012,480 1.1.1.2 Structure compensation mu 178.72 9,100 1,626,352 1.1.1.3 Relocation subsidy mu 140.22 9,700 1,360,134 CNY35/day 1.1.1.4 Subsidy for loss of working time person 293 153,825 for 15 days 1.1.1.5 Subsidy for stoppage loss unit 7 1,500 10,500 1.1.2 Enterprise land mu 159.33 112,207,564 1.1.2.1 Land compensation 159.33 303,600 63,459,540 1.1.2.2 Structure compensation mu 159.33 473,000 75,363,090 1.1.2.3 Relocation subsidy mu 19.63 9,700 190,411 CNY35/day 1.1.2.4 Subsidy for loss of working time person 342 179,025 for 15 days 1.1.2.5 Subsidy for stoppage loss unit 4 1,500 6,000 1.1.2 Reserve land1 mu 950.39 0 1.2 Collective land mu 815.56 24,307,775 1.2.1 Paddy land mu 40 31,875 1,275,000 1.2.2 House plot mu 72 550 39,600 1.2.3 Dryland mu 123 23,220 2,856,060 1.2.4 Vegetable land mu 109 78,771 8,586,039 1.2.5 Fish pond mu 132 49,179 6,491,628 1.2.6 Wood land mu 147 13,416 1,972,152 1.2.7 Orchard land mu 102 23,872 2,434,944 1.2.8 Village road mu 42.56 13,000 553,280 1.2.9 River bottom land mu 48 2,064 99,072 2 Demolishment of Residential Structure & Auxiliaries 30,257,590 2.1 Residential structure m2 57,187.13 22,716,175 2.1.1 Frame structure m2 10,646.94 470 5,004,062 2.1.2 Brick-concrete m2 33,050.29 420 13,881,122 2.1.3 Brick-wood m2 9,352.06 330 3,086,180 2.1.4 Simple structure m2 4,137.84 180 744,811 2.2 Relocation subsidy m2 57,187.13 3.00 171,561 2.2.1 Relocation subsidy m2 57,187.13 3.00 171,561

Unit Price No. Item Unit Quantity Cost Estimate (CNY) (CNY) 2.3 Housing transition allowance m2 57,187.13 6×5.00 1,715,614 2.3.1 Housing transition allowance m2 57,187.13 6×5.00 1,715,614 2.4 Auxillaries 5,644,240 2.4.1 Fence m 920 50 46,000 2.4.2 Kitchen No. 371 5,000 1,855,000 2.4.3 Toilet No. 371 4,500 1,669,500 2.4.4 Coal gas set 371 300 111,300 2.4.5 Internet household 65 120 7,800 2.4.6 Aluminum alloy windows m2 8,050 50 402,500 2.4.7 Anti-theft net with steel 20 8,100 162,000 structure m2 2.4.8 Stainless anti-theft net m2 8,750 50 437,500 2.4.9 Air conditioner No. 127 100 12,700 2.4.10 Sunning ground m2 900 50 45,000 2.4.11 Door m 86 100 8,600 2.4.12 Sinmple pig and chicken pens m2 2,210 100 221,000 2.4.13 Telephone No. 139 160 22,240 2.4.14 Ground with colored clay brick m2 6,600 20 132,000 2.4.15 Ground with endurable 30 9,740 292,200 wearing brick m2 2.4.16 Ground with Mosaic brick m2 3,520 15 52,800 2.4.17 Ground with patterned brick m2 1,400 10 14,000 2.4.18 External wall with Mosaic m2 2,300 15 34,500 2.4.19 External wall with strip m2 30 3,920 117,600 patterned brick 2.4.20 Tomb (earth) No. 20 500 10,000 3 Infrastructures and Special Facilities 19,401,992 3.1 10KV electrical pole No. 250 2,500 625,000 3.2 Steel tower No. 13 30,000 39,000 3.3 Overhead wire and cable m 23,613 40 944,520 3.4 400V overhead wire and cable m 15,400 40 616,000 3.5 Electrical cable m 500 40 20,000 3.6 380V electical pole in public No. 2,500 362,500 145 transformer 3.7 Transformer (KVA) 20 No. 3 20,000 60,000 3.8 Transformer (KVA) 30 No. 7 20,000 140,000 3.9 Transformer (KVA) 50 No. 4 20,000 80,000 3.10 No. 2 Transformer (KVA) 80 380,000 3.11 Transformer (KVA) 100 No. 17 20,000 3.12 Transformer (KVA) 125 No. 2 20,000 40,000 3.13 Transformer (KVA) 160 No. 3 25,000 75,000 3.14 Transformer (KVA) 180 No. 1 25,000 25,000 3.15 Transformer (KVA) 200 No. 15 30,000 450,000 3.16 Transformer (KVA) 250 No. 8 30,000 240,000 3.17 Transformer (KVA) 315 No. 10 40,000 400,000 3.18 Transformer (KVA) 400 No. 10 50,000 500,000 3.19 Transformer (KVA) 500 No. 5 80,000 400,000 3.20 Transformer (KVA) 630 No. 6 80,000 480,000 3.21 Transformer (KVA) 800 No. 4 100,000 400,000

Unit Price No. Item Unit Quantity Cost Estimate (CNY) (CNY) 3.22 Transformer (KVA) 1000 No. 2 150,000 300,000 3.23 Transformer (KVA) 1250 No. 3 200,000 600,000 3.24 Transformer (KVA) 1600 No. 4 200,000 800,000 3.25 Transformer (KVA) 2500 No. 1 350,000 350,000 3.26 Water pipe (DN15mm) m 29.1 50 1,455 3.27 Water pipe (DN20mm) m 675.6 60 40,536 3.28 Water pipe (DN25mm) m 76.3 70 5,341 3.29 Water pipe (DN40mm) m 24 80 1,920 3.30 Water pipe (DN50mm) m 1,978.64 150 296,796 3.31 Water pipe (DN65mm) m 65 100 6,500 3.32 Water pipe (DN80mm) m 565.6 240 135,744 3.33 Water pipe (DN100mm) m 2,447 300 734,100 3.34 Water pipe (DN150mm) m 2,427 450 728,100 3.35 Water pipe (DN200mm) m 1,263 500 631,500 3.36 Water pipe (DN250mm) m 466 600 279,600 3.37 Drainage pipe (DN300mm) m 1,655.8 400 662,320 3.38 Drainage pipe (DN600mm) No. 6,089.1 600 3,653,460 3.39 Drainage pipe (DN1000mm) No. 138 1,000 138,000 3.40 Drainage pipe (DN1200mm) No. 819 1,200 982,800 3.41 Communication cable m 63,500 20 1,270,000 3.42 Communication optical cable m 17,800 30 534,000 3.43 Optical cable line of cable TV km 13.5 30,000 405,000 3.44 Optical cable main line of km 25.15 503,000 cable TV 20,000 3.45 Cable net of cable TV household 648 100 64,800 Basic Cost of LAR 204,338,212

5 Other Costs 4,254,609 5.1 RP Preparation 100,000 5.2 Administration 1% of LAR 2,027,305 5.3 M&E 1% of LAR 2,027,305 5.4 Training 100,000 6 Land Related Taxes 13,493,350 6.1 Farmland Reclamation Cost mu 506 20000 10,120,000 6.2 Land Use for New Construction m2 337,335 8 2,698,680 Land 6.3 Tax on Farmland Acquisition m2 337,335 2 674,670 7 Contingencies 33,313,008 7.1 Physical contingency 10% 22,208,672 7.2 Price Difference 5% 11,104,336

Total 255,399,179 Note: 1 Reserve land means that land is acquired for public aution by Land Reserve Center.

Table 9-1b Detailed Cost Estimates of Resettlement beyond ROW

Cost Estimate No. Item Unit Quantity Unit Price (CNY) (CNY) 1 Permanent Land acquisition 39,051,690 1.2 Collective land mu 1.2.1 Paddy land mu 36 31,875 1,147,500 1.2.2 House plot mu 75 550 41,250 1.2.3 Dryland mu 33.44 23,220 776,477 1.2.4 Vegetable land mu 232 78,771 18,274,872 1.2.5 Fish pond mu 69 49,179 3,393,351 1.2.6 Wood land mu 421 13,416 5,648,136 1.2.7 Orchard land mu 389 23,872 9,286,208 1.2.8 Village road mu 35 13,000 455,000 1.2.9 River bottom land mu 14 2,064 28,896 2 Demolishment of Residential Structure & Auxiliaries 5,424,067 2.1 Residential structure m2 9,722.00 3,391,291 2.1.1 Frame structure m2 1,045.40 470 491,338 2.1.2 Brick-concrete m2 5,274.13 420 2,215,135 2.1.3 Brick-wood m2 1,562.49 330 515,622 2.1.4 Simple structure m2 939.98 180 169,196 2.2 Relocation subsidy m2 9,722.00 3 320,826 2.2.1 Relocation subsidy m2 9,722.00 3 29,166 2.3 Housing transition allowance m2 9,722.00 6×5.00 291,660 2.3.1 Housing transition allowance m2 9,722.00 6×5.00 291,660 2.4 Auxillaries 1,420,290 2.4.1 Fence m 310 50 15,500 2.4.2 Kitchen No. 64 5,000 320,000 2.4.3 Toilet No. 64 4,500 288,000 2.4.4 Coal gas set 64 300 19,200 2.4.5 Internet household 12 120 1,440 2.4.6 Aluminum alloy windows m2 1,480 50 74,000 2.4.7 Anti-theft net with steel m2 1,260 20 25,200 structure 2.4.8 Stainless anti-theft net m2 6,154 50 307,700 2.4.9 Air conditioner No. 22 100 2,200 2.4.10 Sunning ground m2 240 50 12,000 2.4.11 Door m 10 100 1,000 2.4.12 Sinmple pig and chicken pens m2 560 100 56,000 2.4.13 Telephone No. 25 160 4,000 2.4.14 Ground with colored clay brick m2 1,540 20 30,800 2.4.15 Ground with endurable 30 2,870 86,100 wearing brick m2 2.4.16 Ground with Mosaic brick m2 1,350 15 20,250 2.4.17 Ground with patterned brick m2 480 10 4,800 2.4.18 External wall with Mosaic m2 2,300 15 34,500 2.4.19 External wall with strip m2 3,920 30 117,600 patterned brick Basic Cost of LAR 44,475,757

5 Other Costs 1,089,516

Cost Estimate No. Item Unit Quantity Unit Price (CNY) (CNY) 5.1 RP Preparation 100,000 5.2 Administration 1% of LAR 444,758 5.3 M&E 1% of LAR 444,758 5.4 Training 100,000 6 Land Related Taxes 8,039,410 6.1 Farmland Reclamation Cost mu 301.44 20,000 6,028,800 6.2 Land Use for New Construction m2 201,061 8 1,608,488 Land 6.3 Tax on Farmland Acquisition m2 201,061 2 402,122 7 Contingencies 42,986,178 7.1 Physical contingency 10% 803,941 7.2 Price Difference 5% 401,971

Total 54,810,594

Table 9-2 Summary Resettlement Costs

No. Item of Compensation Cost Estimates (CNY) Within ROW Beyond ROW2 1 Permanent Land Acquisition1 154,678,630 39,051,690 2 Demolishment of Residential Structure & Auxiliaries 30,257,590 5,424,067 3 Demolishment of Basic Infrastructures & Special Facilities 19,401,992 0 4 Other Costs 4,254,609 1,089,516 5 Land Related Taxes 13,493,350 8,039,410 6 Contingencies 33,313,008 42,986,178 7 Total 255,399,179 54,810,594 Note: US$ 1 = CNY 7.0 1 including land acquisition and compensation for land and structures of institutions and enterprises. 2 The cost is subject to revision based on detailed measurement survey.

9.2 Annual Budget

According to the project schedule, the project construction will take about 48 months to complete between January 2009 and December 2012. The annual cash flow is estimated to be 40% or CNY 101 million in 2009, 40% or CNY 101 million in 2010, 10% or CNY 25.54 million in 2011, and 10% or CNY 25.54 million in 2012, respectively. Table 9-3 provides the annual budget of resettlement cost.

Table 9-3 Annual Budget of Resettlement Cost within ROW (CNY)

2009 2010 2011 2012 Total Total Budge ( CNY1,000 ) 102,160 102,160 25,540 25,540 255,399 Proportion of Total Budget (%) 40% 40% 10% 10% 100%

9.3 Flow of Fund

Fund related to resettlement will be distributed through the following channels (See Table 9-4):

Table 9-4 Flow of Fund

Permanent land acquisition of collective- owned land (70% land compensation + → WDSAIMC → RO → VC → APs resettlement subsidy)

Permanent land acquisition of collective- → WDSAIMC → RO → VC owned land (30% land compensation)

Permenent land acquisition of state-owned → WDSAIMC → RO → Wuzhou Land Reserve Center land

Permanent land acquisition of institution & → WDSAIMC → RO → Owner of Institution & Enterprise enterprise land

Residential structures → WDSAIMC → RO → VC → APs

Residential structure of institutions and Institutions or → WDSAIMC → RO → → APs enterprises enterprises

Auxiliaries → WDSAIMC → RO → VC → APs

Relocation allowance → WDSAIMC → RO → VC → APs

Non-residential structure of institutions and → Owner of Institution & Enterprise → WDSAIMC → RO enterprises

Production or business stoppage allowance → WDSAIMC → RO → Owner of Institution & Enterprise

→ Owner of Allowance for salary loss of employees WDSAIMC → RO → Institution& → Employees Enterprise

Ground → WDSAIMC → RO → Owner Attachments

Investigation and design cost → WDSAIMC → Design institute

Office administration costs → WDSAIMC → LAR implementation agencies

Training cost → WDSAIMC → Training institutions

M&E → WDSAIMC → IMA

X. LAR IMPLEMENTATION SCHEDULE

10.1 Principles

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

In order to ensure that all aspects of the RPs can be achieved, land acquisition will start at least one month before construction. The resettlement site should be constructed before old housing, institutions and enterprises are demolished. The affected persons must move into their new housing at least one month before the demolition of the residential structure or non-residential structure. Before the land acquisition and APs are moved, a final measurement survey will be conducted in the affected village, and the contracts with each affected household, institution and enterprise will be negotiated and signed. The disbursement of compensation should be paid. Also, arrangements for housing replacement will be established before relocation proceeds.

10.2 LAR Implementation Schedule

Resettlement implementation will be scheduled in stages to coincide with the overall Project schedule between the end of January 2009 and the end of December 2013. The land acquisition will start from January 2009 to December 2012. The construction of the resettlement area within the same village of Longxin will be implemented from March 2009 to December 2010. APs will move into the new resettlement houses by the end of December 2011. It is planned that construction will not take place before APs are fully compensated and relocated to new houses. It is planned that the land acquisition shall be completed before the start of Project construction.

However, before the APs are moved, a final measurement survey will be conducted in the affected villages, institution and enterprise. The compensation contracts will be negotiated and signed. Also, arrangements for housing replacement will be established before relocation proceeds. Based on the detailed measurement survey (DMS), the RP will be updated and submitted to ADB.

The LAR schedule has been divided into four stages:

1) Land Acquisition and Compensation Planning

- Apply for and receive “Planning Land Use Certificate”, “Construction Land Use Certificate”, and “House Demolition Certificate”; - Conduct detailed measurement surveys of the affected area to determine the specific losses eligible for payment of compensation; - Identify poor and vulnerable APs; - Finalize compensation/resettlement strategies in consultation with the local governments, APs and their representatives; - Conduct public information/consultations on RP; - Sign contract; and,

- Finalize relocation area.

2) Land Acquisition and Resettlement Activities

- Provide compensation payment; - Construct new houses, infrastructure and other facilities; - Transfer APs to new location; and, - Demolish buildings and other structures.

3) Income Restoration

- Provision of employment opportunities during the Project construction and operation phases; - Assistance in the identification of employment and business opportunities for APs in the local enterprises and businesses; - Targeted training; - Promotion and development of secondary and tertiary industry; and, - Special attention paid to the vulnerable groups.

4) Monitoring

- Hire monitoring agency; - Approve TOR by the Bank; - Monitor LAR; - Monitor income restoration program; - Monitor poverty reduction program and assistance provisions to vulnerable groups; and, - Conduct external evaluation of the Project.

The resettlement supervision milestone is presented in Table 10-1. Based on the project schedule of civil works, the resettlement plan preparation will be continue after the PPTA stage, and the land acquisition and resettlement are planned to commence in December of 2008 and complete in December2012. The RP planning and implementation schedule with time bound activities is shown in Figure 10-1.

Table 10-1 Resettlement Supervision Milestone No. Resettlement Tasks Target Responsible Agency Deadline Status 1. Disclosure 1.1 - Information booklet 3,221 APs, 635 IA (WDSAIMC) and ROs Aug 2008 Planned employees in 10 institutions and 10 enterprises 1.2 - Approved RP 2 villages WMG, District Aug 2008 Planned Government, and ROs 1.3 - RP posted on ADB website WMG, PMO, IA and ADB Aug 2008 Planned 2. Approval of RP and Budget $36.49 million WMG, District Aug 2008 Planned (Recheck) Government, and ROs 3. Agreements 3.1 - Compensation rates 2 villages WMG, District Jan 2009 In process Government, WLRB, WHDAO, ROs, VC, PMO, and IA 3.2 - Households 3,221 APs PMO, IA, WLRB, WHDAO, Jan 09 – Planned

No. Resettlement Tasks Target Responsible Agency Deadline Status ROs, and VC Nov 12 3.3 - Institutions & Enterprises 10 institutions & PMO, IA, WLRB, WHDAO, Mar 09 – Planned 10 enterprises and ROs Mar 10 4. Detailed Plans 3.1 - Community rehabilitation plans 2 villages PMO, IA, DI, and ROs Jan 09 – Dec Planned 11 3.2 - Institution & enterprise 10 institutions & PMO, IA, DI, and ROs Mar 08 – Planned relocation & rehabilitation plans 10 enterprises Dec 10 3.3 - Plan for vulnerable group if 32 AFs or 87 PMO, IA, WMG, Wuzhou Mar 09 – Planned identified APs Civil Affairs Dec 10 Bureau/Wuzhou Labor & Social Security Bureau 3.4 - Training Plans for APs All AFs PMO, IA, ROs, training Jan 09 - Planned institutions Dec 2012 6. Establishment of PLG, PMO, IA, respective Oct 08 – To be done Implementation Capacity ROs, WLRB, WHDAO, Jan 09 Others 7. Monitoring & Evaluation 7.1 - Baseline survey 1,374 APs & 20 PMO, IA, and DI Dec 07 - Jun Completed institutions and 08 enterprises 7.2 - Set-up internal supervision As per RP PMO and IA Jun - Oct 08 Planned 7.3 - Hiring external monitor As per RP PMO Oct 08 Planned 7.4 - Internal monitoring reports Quarterly PMO, IA, and RO Jan 09 1st Report 7.5 - External monitoring reports Semi-annual IMA Jun 09 1st Report Dec 09 2nd Report 7.6 - Resettlement Completion 1 report IMA As work is Reports completed in Dec 12 7.7 - Evaluation reports 2 annual reports IMA Dec 13 1st Report Dec 14 2nd Report 8. Documentation of Consultation IA, ROs, VC Ongoing 9. Documentation of Grievances IA, ROs, VC Ongoing 10. Flow of Funds / Compensation 10.1 - To IA 40% WMG Jan 09 Pending 10.2 - To affected VC “ “ “ IA and ROs Jan 09 – Nov 12 10.3 - To affected households “ “ “ IA and ROs Jan 09 – Nov 12 AFs = Affected Families; DI = Design Institutes; IA = Implementation Agency; IMA= Independent Monitoring Agency; PLG= Project Leading Group; PMO = Project Management Office; RC = Resident Committee; RO = Resettlement Office; WDSAIMC = Wuzhou Dongtai State Assets Investment and Management Corporation; WHDAO = Wuzhou House Demolishment Administration Agency; WLRB= Wuzhou Land Resource Bureau; and WMG = Wuzhou Municipal Government.

Figure 10-1 RP Planning and Implementation Schedule

Activities 2008 2009 2010 2011 2012 2013 2014 123456789101112I IIIIIIV I II IIIIVI IIIIIIVI IIIIIIVI IIIIIIVI IIIIIIV Project Procedure Feasibility study preparation and approval Preliminary design and detailed design Final equipment procurement lists Preparation of bidding documents Engineering tendering process & signing contract Detailed design of construction map Construction preparation Civil work construction from commence to completion Testing and putting into operation Planning of Land Acquisition and Resettlement Finalize the scope of LAR Conduct socioeconomic survey Conduct measurement survey of APs Determine compensation standards and RP Prepare resettlement plan Conduct detailed measurement survey Identify and confirm poor and vulnerable APs Finalize compensation/resettlement strategies Pre-examination of land acquisition Institutional setup and training Permanent Land Acquisition and Resettlement Apply for the Land Use Certificate Hold mobilization meetings and publicize policies Announce public notification Negotiate and sign contracts Disburse compensation payment and acquire land Livelihood and Income Restroration Employment of APs in the Project construction Implementation of rehabilitation measures New skill training Monitoring and Evaluation Establish internal monitoring system & formats Engage monitoring agency Approve TOR by ADB Training of resettlement staff Monitor LAR activities Monitor income restoration programs Conduct external evaluation

XI. INSTITUTIONAL FRAMEWORK

11.1 Project Resettlement Organizational Set-up

The project leading group is established within the WMG with the PMO as the secretariat communicating with the other stakeholders. As previously mentioned, WDSAIMC is the project Implementation Agency (IA). Under the IA, there is a resettlement office, responsible for land acquisition and resettlement. The organizational structure is shown in Figure 11-1.

The IA will play a key role during the resettlement process. However, besides the IA, there are other related institutions who will be also involved in the resettlement activities. All these institutions and the staffing are presented in Table 11-1.

Table 11-1 Resettlement Institutions Involved and Staffing Institutions Staffing Project Leading Group 2 males & 1 female with experience, Government officers, education level above college Wuzhou Project Management Office (PMO) 2 males & 2 females with experience, Government officer, engineering technicians, education level above college Wuzhou Land Resource Bureau (LRB) 2 males with experience, Government officer, education level above college Wuzhou House Demolishment Administration Office (HDAO) 8 males & 3 females with experience, Government officer, education level above college Wuzhou Construction and Planning Commission (CPC) 2 males & 1 female with experience, Government officer, education level above college Changzhou District Government (CDG) 1 male & 1 female with experience, Government officer, education level above college WDSAIMC/Resettlement Office 5 males & 2 females with experience, Engineering technicians and management staff, education level above college Hongling Project RO 7 males & 6 females with experience, officers and representatives of APs, education level bovver college VC 5 males & 5 females with experience, community officials Legal Advisory Office 1 female lawyers DI 2 male senior engineering technicians External Monitoring Agency 1 resettlement specialist

Project Leading PMO Group

Wuzhou Changzhou District Legal Advisory Wuzhou LRB Wuzhou CPC WDSAIMC - IA DI HDAO Government Office

IMA Engineering Office Resettlement Office Finance Department Administration Office

Hongling Project Resettlement Office

VCs Institutions & Enterprises

APs

Figure 11-1 Organizational Structure of LAR Implementation

11.2 Responsibilities

Table 11-2 Responsibilities of Agencies

Institutions Responsibilities PLG - Lead, organize, coordinate and formulate policies for the project. - Review the implementation of the RP. - Conduct internal supervision and inspection. - Make decision for major problems during land acquisition and resettlement process.

PMO - Perform the overall coordination and organize the project activities. - Coordinate the preparation and implementation of the LAR program. - Organize and coordinate the preparation of RP. - Provide assistance to women and other vulnerable groups. - Serve as a liaison between ADB and IA and various stakeholders.

WDSAIMC - IA - Apply for Land Use Planning Certificate and Land Use Construction Certificate to LRB. - Apply for house demolition certificate. - Disburse land acquisition and resettlement fund and supervise the usage. - Direct, coordinate and supervise the implementation schedule of the RP. - Organize and implement internal supervision, determine independent external supervision agency, coordinate internal and external monitoring activities. - Report the schedule of land acquisition and resettlement, fund usage and implementation status periodically to ADB. - Provide assistance to women and other vulnerable groups. - Coordinate the handling of the conflicts and problems during the resettlement implementation. - Report the land acquisition and house demolishment to PLG.

Resettlement - Organize the socioeconomic survey. Office - Conduct measurement surveys of land acquisition and house demolishment. - Implement the relocation. - Formulate the resettlement implementation schedule. - Sign the land acquisition and house demolishment agreement with the affected households in association with local government. - Supervise the implementation of RP. - Manage the information of land acquisition and resettlement. - Provide assistance to women and other vulnerable groups. - Train the resettlement staff. - Coordinate the handling of conflicts and problems during the RP implementation. - Settle the disputes and grievances through coordination and arbitration. - Handle the illegal action during the land acquisition and relocation process. - Report the land acquisition and house demolishment to IA.

Wuzhou - Designate the scope of land used and approve construction activities Construction & on land.

Institutions Responsibilities Planning - Issue land usage certificate based on plan. Committee WLRB - Implement the relevant national policies of land acquisition. - Participate in the examination of compensation standards for land acquisition and ground attachments. - Process and approve land acquisition. - Participate in measurement and socioeconomic surveys. - Participate in the preparation of Resettlement Plans. - Issue Land Use Planning Certificate and Land Use Construction Certificate. - Issue Public Notice of Land Acquisition. - Guide, coordinate, and supervise the implementation activities of land acquisition and resettlement. - Coordinate the handling of conflicts and problems during the RP implementation.

WHDAO - Carry out and implement the regulations and policies related to house demolition. - Review the relevant documents of house demolition plan and resettlement and compensation plan, issue the house demolition certificate. - Register and manage house relocation file. - Coordinate, supervise and inspect the house demolition activities and handle conflicts during demolition. - Cooperate with the respective Resettlement Office (RO) to train and examine the resettlement officers.

Legal Advisory - Provide legal consultancy during project implementation. Office - Provide legal assistance in case there is dispute during house demolishment and resettlement.

District - Assist the measurement and socioeconomic surveys. Government - Assist the preparation of resettlement plans. - Supervise VCs to implement resettlement plan and rehabilitation plan.

VCs - Participate in measurement and socioeconomic surveys and formulation of the resettlement and rehabilitation plan. - Participate in the preparation of the RP. - Organize the public consultation; and publicize policies of land acquisition and resettlement. - Consult the compensation payment and distribution. - Organize the production and income restoration activities in resident communities and villages. - Organization the development of secondary and tertiary industries. - Report comments and suggestions of APs to the organizations at upper level. - Provide assistance to women and other vulnerable groups.

DI - Minimize the project impacts through optimizing engineering design. - Identify the scope of land acquisition and resettlement impacts. - Conduct measurement survey and socioeconomic surveys. - Assist to prepare the Resettlement Plan. - Provide technical consulting of data collection and processing to the

Institutions Responsibilities respective municipal PMO and IA.

Independent - Provide technical consulting of land acquisition and resettlement. Monitoring Agency - Act as an IMA, provide periodic monitoring for the implementation of (IMA) the resettlement plan, and provide independent evaluation report to the municipal PMO, IA, RO, and ADB.

11.3 Institutional Capacity Strengthening

11.3.1 Assessment of Institutional Capacity

a. 11.3.1.1 Logistics and Hardware

Currently there is a resettlement office under WDSAIMC, which is equipped with a few computers. There is a need for additional hardware facilities in the office. In order to ensure the smooth implementation of LAR, Hongling Project Resettlement Office will also be established. The ROs will be facilitated with office facilities, transportation vehicles and communication facilities, mainly including air-conditioner, chairs and tables, computer, printer, telephone set, fax machine, vehicle and some other office necessities. As for the vehicle, a 12-seat van will be leased by WDSAIMC, the expenditure of the RP will be included in the office expenses. The relevant expenditures for hardware facilities for the ROs are budgeted at CNY 50,000.

b. 11.3.1.2 Financing

It is foreseen that IA can conduct the resettlement tasks more efficiently after the project FSR has been approved and budget has been allocated. During the PPTA stage, all budget spent were pre-paid by IA as well as EA. The lack of financing resources during project preparation stage has definitely hindered the institutional set-up and the preparation progress (including FSR and RP preparation) irrespective of the staff’s capabilities. The RP has considered this issue and adequate management fund for RP implementation has been budgeted in the resettlement budget.

11.3.1.3 Staff Capabilities

During the PPTA stage, the Consultants found that many government officials have rich experiences in dealing with land acquisition and resettlement issues. However, almost nobody has resettlement experience of working in ADB financed projects, and none of them has attended training on ADB involuntary resettlement policies before the Project. Therefore, a systematic training on Involuntary Resettlement will be necessary.

11.3.2 Institutional Capacity Building and Training

The ADB will provide support to train staff on resettlement procedures. A part of the ADB loan for implementation will be provided for institutional capacity building through specific training courses and on the job training with the appointed IMA. The training includes the principals and policies of resettlement, construction planning management, planning and design, management

on LAR implementation processes, financial management, quality control, supervision and estimation and project management.

In order to promote the capability and working efficiency of resettlement staff, training will be provided to them. Based on the real situation, the requirements are as follows:

- Training venue will be selected outside of Wuzhou City, preferably those cities which have ADB projects with successful resettlement experiences so that trainees can learn their experiences from investigations or study tours.

- Trainees should be those who will be seconded to the Project to undertake resettlement tasks, and those resettlement officials who participated in the RP discussions with PPTA Resettlement Consultant must participate.

- Training is planned between October and December, 2008.

XII. MONITORING, EVALUATION AND REPORTING

The PMO and IA will regularly monitor and evaluate the implementation of land acquisition and resettlement activities in order to ensure resettlement work is implemented successfully in accordance with the RP, and to achieve the target of appropriate livelihood restoration for APs. The monitoring will comprise two components: internal monitoring and external monitoring. Internal monitoring will be mainly conducted by IA and ROs and will be overseen by the project leading group and PMO to ensure that organizations involved in implementation of land acquisition and resettlement work comply with the principles and schedules of the Resettlement Plan (RP).

The aim of internal monitoring is to encourage the concerned organizations to carry out good performance while the external monitoring and evaluation will be conducted by an independent agency periodically on the activities of land acquisition, demolition and resettlement.

The scope of monitoring on resettlement will cover data collection, analysis, and the reporting of progress for an internal monitoring while the external monitor will check progress but their main role is to evaluate quality and results of resettlement.

Resettlement monitoring will focus on the following two aspects:

- Progress of disbursement and provision of entitlements to APs. - Comparison of APs and VC, institution and enterprise pre and post resettlement socioeconomic situation, particularly livelihood restoration. Background socioeconomic data collected during the inventory and census surveys will be used in this assessment.

12.1 Internal Monitoring

Internal monitoring will be undertaken by the PMO, Wuzhou Land Resource Bureau, Wuzhou House Demolishment Administration Office, and IA and ROs, to assure the concerned departments to comply with the RP. Internal monitoring and evaluation aims to ensure good performance during the resettlement process.

12.1.1 Objectives of Internal Monitoring

The executive agency will take major responsibility of internal monitoring, covering the activities of affected people, entitlement, advice, grievance, problems, efficiency, timing, and budget, etc.

- Disbursement of entitlements to AP: compensation, housing, employment, and necessary assistance as specified in the RP.

- Social adaptability and cohesion: impacts with a gender perspective on APs and vulnerable groups, public participation, non-government’s role, AP’s attitudes and opinions after resettlement, number of complaints and appeal procedures, implementation of preferential policies and income restoration measures, and improvements in women’s status.

- Timing of house demolition and restoration: provision of residential and non-residential houses, disbursement of compensation for house replacement costs, and reconstruction of

adequate housing and updating of resettlement schedule and resettlement budget where required.

- Rehabilitation of community facilities and services: Timely rehabilitation of community facilities and services and ensuring that mitigation measures to minimize impacts are implemented.

- Public participation and consultation: Involvement of AP in resettlement implementation as per the public consultation plan outlined in the RP. Review of grievance register and responses to complaints.

- Assistance to vulnerable groups.

It is anticipated that internal monitoring reports will be brief documents reporting on progress to date and identification of issues, how issues were resolved, consultations undertaken, and revisions of the resettlement schedule and disbursement of budget where required.

12.2 External Monitoring and Evaluation

Required by ADB, the PMO will appoint an independent monitoring agency (IMA) to carry out the external monitoring and evaluation on resettlement. The independent agency should have good reputation and successful experience and fully understand ADB’s policy and requirements on resettlement. The PMO will sign a contract with this agency. The terms of reference (TOR) for the independent evaluator are listed in Appendix 2.

12.2.1 Objectives and Requirements of M&E

Objectives The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

z Economic situation prior to and after displacement of land or housing; z Timely disbursement of funds; z Environmental conditions; z Social adaptability after resettlement; z Rehabilitation of the vulnerable groups if identified during implementation process; z Measures taken to restore affected production and livelihoods of the APs, institutions and enterprises; and, z Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project area.

Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwards. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IA, local officials, village leaders, management staff of institutions and enterprises, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, other vulnerable groups and unemployed workers.

Monitoring Indicators The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

z Disbursement of entitlements to affected households and institutions, enterprises: compensation, housing, employment, and necessary assistances as specified in the RP. z Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed. z Provision of alternative housing: the affected persons must move into their alternative housing at least one month before the relocation; the compensation for houses should be equivalent to the replacement cost; the affected persons must receive on time their entitlements regarding relocation allowance. z Restoration of basic infrastructures and special facilities: all necessary basic infrastructures and special facilities should be restored at the resettlement sites at least up to a standard equal to the standard at the original location; the compensation for all infrastructures and special facilities should be sufficient to reconstruct it to the same quality. z Level of AP’s satisfaction: level of APs’ satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored. z Standard of living: Throughout the implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation. z Reemployment of affected staff and workers and compensation of lost wages. z Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

Special Considerations Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

z The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluating unit will also provide recommendations and assistance to the PMO and IA in respect of women’s issues. z Care and attention to vulnerable groups: Closely monitor living conditions of the poor, elders, the handicapped, and other vulnerable groups after resettlement, to ensure that no hardship is experienced. z Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Wuzhou Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

12.2.2 Methodology

The methodology of external monitoring and evaluation are listed as follows:

- Independent agency will conduct baseline survey on the affected area and acquire the baseline data of APs. The investigation about production and AP’s living conditions will be made every year to measure the change. Sample trace investigation of affected households, institutions and enterprises will be adopted. Irregular interview or site visits will be made to acquire sufficient data for evaluation.

- Conduct group discussion and consultation with various groups of people from government, non-government, community and affected people.

- Interview with key persons such as village leaders, management staff of institution and enterprise regarding resettlement implementation.

- Community public meetings to collect various informations on resettlement.

- Make direct observation regarding progress of demolition and replacement and visit the individuals or groups.

- Informal investigation or interview by non-sampling means such as with the affected people, employees and staff engaged with resettlement.

12.2.3 Major Tasks

The IMA will monitor and evaluate the resettlement relative with the project and consolidate their findings and assessment into a report to ADB, EA, IA and other concerned departments. These reports can be helpful in the policy-making by concerned department. The affected people and non-government organizations and communities will participate in the evaluation activities.

External monitoring and evaluation will cover the quality assessment on following the aspects:

- Adequacy of compensation and timelines of payment;

- House demolition and resettlement of APs;

- Situation of house and living environment pre and post resettlement; bear in mind with a gender perspective;

- Livelihood restoration of APs;

- Operation and efficiency of the resettlement institutions.

12.3 Reporting Requirements

Internal monitoring reports will be submitted quarterly by project IA to the PMO and PMO will submit it in the progress report to ADB. The external M&E reports will be submitted directly to PMO and ADB simultaneously every six months by the IMA. The external evaluation reports will be continued once every six months until the completion of the resettlement, and then the

annual evaluation reports will also be prepared by the external monitor once every 12 months until Project completion. Finally, after project completion, the PMO and IA will prepare a resettlement completion report and submit to ADB.

Appendix 1 Resettlement Information Booklet

1. Introduction

Hongling Road Network Project is located in Hongling Area, Changzhou District of Wuzhou City. Currently, the residents of the Hongling Development Area do not have convenient transportation system, which constraints the economic development in the Area. This is due to the historical reason that the investment for urban construction in Wuzhou City is low and basic infrastructure lags behind, which causes unreasonable layout of the network structure, unclear function of the roads, and the rate of road coverage area and average road area per capita is much lower than the similar urban cities of the advanced countries. With the fast economic development in Wuzhou City, the city is becoming the industrial processing base, import and export warehouse and cargo transit base, and economic and logistics center, with rapid development of service and tertiary industry. However, the urban road network can not meet the development pace of the city. Therefore, it is necessary to enlarge the scale and expand the space of urban development to strengthen the position of urban competition for Wuzhou City.

2. Impacts of Land Acquisition and Resettlement

According to the urban development master plan of Wuzhou City, Hongling Area is planned to be built into leisure district combining commerce, residence, trade and business functions. In Hongling, the total land area is 690.7 ha (10,360.5 mu). The land use is mainly hilly land, fish pond, wasteland and villages. The land surrounding the railway station and bus station totaled at 2,382.5 mu which will not be acquired and reserved for land transfer by Wuzhou Land Reserve Center (WLRC). The total area of land for Land Block A, B, C, and D in Hongling Area is 7,978 mu, including 2,297 mu of protected wood land, condensed rural house plot and already transferred land which will not be acquired and reserved by the WLRC also. As a result, the total land area for urban development in Hongling Area is 5,681 mu which will be acquired and reserved by the WLRC to be auctioned to private parties or companies later, of which 1,641 mu is collective land owned by Longxin Village and 4,040 mu originally collective land which was acquired and reserved by WLRC from 1997 to 2000 and now have been converted into state land. All land use certificates for the 4,040 mu of land was obtained between 2001 and 2002. Of the total 4,040 state-owned land acquired between 1997 and 2000, 1,644 mu is the road and reserve land and the remaining 2,396 mu was used by 15 institutions and 23 enterprises after land acquisition. Table 1-1 provides the existing land use of Hongling Area.

Table 1 Existing Land-use Status of Hongling Area

Land Area Type of Land Remarks (mu) Of the total 5,681 mu land for urban development in Hongling Area Total Area of Land to Be have been or will acquired and reserved by the WLRC for public Acquired and Reserved in auction to private parties or companies later, 4,040 mu originally 5,681 Hongling Area for Urban collective land were acquired and reserved by WLRC from 1997 to Development 2000 and now have been converted into state land, and 1,641 mu is collective land owned by Longxin Village. State-owned Land 4,040 The 4,040 mu of state-owned land was originally collective land which Road and Reserve Land 1,644 was acquired and reserved by WLRC from 1997 to 2000. Now the land has already been converted into state land. Based on discussion with MWG, Wuzhou Land Resource Bureau and private developers, there is no issue involved up to date for the land acquired and houses demolished between 1997 and 2000. Due diligence has been carried Enterprise & Institution out by WURCPDI and PPTA Consultants to the best extent as 2,396 Land possible. It should be noted that due to the fatc that the land was acquired and houses were demolished at least more than 8 years ago and most of the APs have moved out the area to Guangzhou as migrant labors for higher income, it is difficult to provide detailed information for LAR before. Collective Land Of the 1,641 mu collective-owned land in Longxin Village, 435.56 mu 1,641 (Longxin Village) will be acquired for Hongling Road Network Project.

The construction of the Project will acquire 2,104 mu state- and collective-owned land permanently in Hongling Area and Sanlong Area under Xinglong Administration Office of Changzhou District, with two villages and 862 rural households or 3,221 persons to be affected. Of the total acquired land, 272 mu or 11.37% are farmland and 1,832 mu are non-farmland. A total of 289 residential households or 1,374 persons who are affected by permanent land acquisition will also be relocated as a result of the residential structure demolishment for the construction of Hongling Road Network Component. The residential houses to be demolished totals at 57,187.13 m2. Additional 338.05 mu land will be acquired and 5,612.01 m2 of non- residential structure will be demolished with 10 state-owned institutions and 10 private-owned enterprises, or 635 employees to be affected. In addition, associated productive assets, ground attachments, and basic infrastructures and special facilities will be removed due to the Project construction.

In addition to the above-mentioned land acquisition and reserve, another 1,204.44 mu of collective land remained beyond the right of way (ROW) in Hongling Area will be acquired and reserved for other urban development projects in Hongling Area, including 64 mu paddy land, 408 mu dryland, 95 mu vegetable land, 94 mu orchard land, 25 mu fish pond, 441 mu wood land, 23 mu house plot, 29.44 mu village road, and 25 mu river bottom land and other lands. A total of 534 households or 1,428 persons will be affected by permanent land acquisition, of which 353 households or 1,673 persons will be relocated with 66,909.13 m2 of residential structures to be demolished. Table 2 provides the summary of the land acquisition and resettlement impacts within and beyond ROW for Hongling Road Network Project, Table 3 provides the impacts of permanent land acquisition within and beyond ROW, Table 4 the impacts for demolishment of residential structures and associated auxiliaries within and beyond ROW, Table 5 the LAR impacts of the institutions and enterprises, Table 2-6 are the impacts of affected basic infrastructures and special facilities, and Table 7 the type and quantity of vulnerable groups.

The owners of other urban development projects in Hongling Area will comply with the policies, principles and standards of the land acquisition and resettlement in the RP for Hongling Road Network Project. No indigenous people or ethnic minorities will be adversely affected by the Project.

Table 2 Summary Land Acquisition and Resettlement Impacts HHs and Popu. HHs and Popu. Residential House Institution Structure Enterprise Structure Acquisition Affected by Affected by Administrative Jurisdiction Permanent Land Acquisition Demolishment Demolishment Demolishment of Road Structure Land and Demolishment Acquisition State- Total Reserve Total Collective Total Land Affected Affected Affected Affected owned Affected APs APs Land APs Land Aps Aps District Street commitee Area Land Land Acquisition Units Units HHs HHs Land 2 HH (No.) (No.) (No.) Area (No.) (mu) (No.) (No.) (mu) (mu) Area (m ) (mu (No.) 2 (No.) (No.) (No.) (mu) (m ) Within ROW Longxin 1,725 1,288.44 436.56 57,187.13 289 1,374 178.72 10 293 159.33 10 341 950.39 289 1,374 534 1,793 Changzhou Xinglong Village District Office Longping 379 0 379 0 0 0 0 0 0 0 0 0 0 0 0 328 1,428 Village Subtotal 2,104 1,288.44 815.56 57,187.13 289 1,374 178.72 10 293 159.33 10 341 950.39 289 1,374 862 3,221 Beyond ROW Changzhou Xinglong Longxin 1,204.44 545 659.44 9,722.00 64 299 0 0 0 0 0 0 0 64 299 534 1,428 District Office Village Subtotal 1,204.44 545 659.44 9,722.00 64 299 0 0 0 0 0 0 0 64 299 534 1,428

TOTAL 3,308.44 1,833.44 1,475.00 66,909.13 353 1,673 178.72 10 293 159.33 10 341` 950.39 353 1,673 1,396 4,649

Table 3 Impacts of Permanent Land Acquisition within and beyond ROW

Permament Land Acquisition River Paddy House Plot Dryland Vegetable Fish Pond Wood Orchard Village Total Area AHs Bottom APs (No.) Land (mu) (mu) (mu) Land (mu) (mu) Land (mu) Land (mu) Road (mu) (mu) (No.) Land (mu) Collective-Owned Land Longxin Village 25 60 45 56 101 69 33 29.56 18 436.56 534 1,793 HHs (No.) 534 289 534 231 387 235 178 86 534 APs (No.) 1,793 1,374 1,793 1,097 1,839 1,117 846 405 1,793 Longping Village 15 12 78 53 31 78 69 13.00 30 379.00 328 HHs (No.) 328 328 214 123 285 294 112 328 APs (No.) 1,428 1,428 924 531 1,230 1,270 484 1,428 Within Subtotal of Land 40 72 123 109 132 147 102 42.56 48 815.56 ROW HHs (No.) 862 289 862 445 510 520 472 0 198 APs (No.) 3,221 1,374 3,221 2,021 2,370 2,347 2,116 0 889 State-Owned Land* Institutions 15 24 25 28 23 26.72 19 5 13 178.72 293 Enterprises 17 15 20 26 31.03 28 0 7 15.3 159.33 342 Road & Reserve Land 8 33 78 155 77.97 192.28 183 130.56 92.58 950.39 Subtotal of Land 40 72 123 209 132 247 202 142.56 120.88 1,288.44 3,856

Table 4 Demolishment of Residential Structures and Associated Auxiliaries within and beyond ROW Hongling Area Item Unit (Longxin Village) Total Within ROW Beyond ROW Households to Be Relocated No. 289 64 353 Population to Be Relocated No. 1,374 299 1,673 Total Area of Structure Demolition m2 57,187.13 9,722 66,909.13 Frame m2 10,646.94 1,945.4 12,592.34 Brick-Concrete m2 33,050.29 5,274.13 38,324.42 Brick-Wood m2 9,352.06 1,562.49 10,914.55 Simple m2 4,137.84 939.98 5,077.82 Structures With House Certificates m2 52,202.27 Frame m2 9,763.44 AHs (APs) No. 61 (293) Brick-Concrete m2 30,095.64 AHs (APs) No. 131 (625) Brick-Wood m2 8,532.53 AHs (APs) No. 60 (290) Simple m2 3,810.66 AHs (APs) No. 2 (9) Total AHs (APS) No. 254 (1,217) Structures Without House Certificates m2 4,984.86 Frame m2 883.50 AHs (APs) AHs (APs) 4 (18) Brick-Concrete m2 2,954.65 AHs (APs) No. 12 (54) Brick-Wood m2 819.53 AHs (APs) No. 19 (85) Simple m2 327.18 AHs (APs) No. Total AHs (APs) No. 35 (157) Auxiliaries Fence m 920 310 1,230 Kitchen No. 371 64 435 Toilet No. 371 64 435 Coal Gas Set 371 64 435 Internet HH 65 12 77 Aluminum Alloy Window m2 8,050 1,480 9,530 Anti-Theft Net with Steel Structure m2 8,100 1,260 9,360 Stainless Anti-Theft Net m2 8,750 6,154 14,904 Air Conditoner No. 127 22 149 Sunning Ground m2 900 240 1,140 Door No. 86 10 96 Smiple Pig and Chicken Pens m2 2,210 560 2,770 Telephone No. 139 25 64 Ground with Colored Clay Brick m2 6,600 1,540 8,140 Ground with Endurable Wearing Brick m2 9,740 2,870 2,610 Ground with Mosaic Brick m2 3,520 1,350 4,870 Ground with Patterned Brick m2 1,400 480 1,880 External Wall with Mosaic m2 2,300 520 2,820 External Wall with Strip Patterned Brick m2 3,920 390 4,310 Tomb (earth) No. 20

Table 5 Affected Institutions and Enterprises

Wuzhou Chicken Breeding Farm 52.57 468 468 468 20 14 6 Complete demolishment with relocation. Rebuild in

Structures to Be Demolished Affected Employees (m2) (No.) another new location Cash Compensation Rose Lake Aquaculture Experiment 11.02 680 120.5 120.5 45 25 20 without relocation and Pond reconstruction No physical structures School of Finance 13.09 0 and attachments on affected ground No physical structures Military Sub-branch 12.78 0 and attachments on affected ground No physical structures Nursery Station 12.63 0 and attachments on affected ground Subtotal 178.72 4,723.93 4,723.93 0 293 196 97 Partial demolishment without relocation. Shareholding Longxin Supply and Marketing Pesticide and Rebuild the 1.22 900 240 240 160 78 82 2,000,000 Company Cooperatives fertilizer sale demolished structure attached with original site Partial demolishment without relocation. Shareholding Rebuild the Animal Production Farm 7.36 1,300 132.4 132.4 20 13 7 1,000,000 Butcher Company demolished structure attached with original site Complete demolishment with Shareholding warehouse of relocation. Rebuild the Timber Storage Farm 0.65 43.11 43.11 43.11 90 65 25 900,000 Company timber demolished structure in another new location Private Longxin Water Supply Plant 10.4 3,200 146 146 24 13 11 15,000,000 water Partial demolishment

Structures to Be Demolished Affected Employees (m2) (No.) Enterprises treatment without relocation. Rebuild the demolished structure attached with original site No physical structures Shareholding Telecom Co. 36.96 0 and attachments on Company affected ground No physical structures Private Bus Co. 33.05 0 and attachments on Enterprises affected ground No physical structures Shareholding Synthetic Sugar Machinery 66.23 0 and attachments on Company Manufacturing Co. affected ground No physical structures Shareholding Sanlian Auto Repair Co. 1.47 0 and attachments on Company affected ground Partial demolishment without relocation. Shareholding Rebuild the Herbal Market 0.47 206 206 35 24 11 Company demolished structure attached with original site Partial demolishment without relocation. Shareholding Rebuild the Maoshan Warehouse 1.52 120.57 120.57 12 6 6 Company demolished structure attached with original site Subtotal 159.33 888.08 386 502.08 341 199 142

Table 6 Affected Basic Infrastructures and Special Facilities

Item Unit Standard Quantity 10KV Electric Pole No. 250 Steel Tower No. 13 Overhead Wire and Cable m 23,613 440V Overhead Wire and Cable m 15,400 Electrical Cable m 3×150 mm² 500 380V Electric Pole in Public Transformer No. 145 20 3 30 7 50 4 80 2 100 17 125 2 160 3 180 1 200 15 Transformer (KVA) No. 250 8 315 10 400 10 500 5 630 6 800 4 1000 2 1250 3 1600 4 2500 1 15 mm 29.1 20 mm 675.6 25 mm 76.3 40 mm 24 50 mm 1,978.64 Water Pipe (Pipe Diameter, Millimeter) m 65 mm 65 80 mm 565.6 100 mm 2,447 150 mm 2,427 200 mm 1,263 250 mm 466 300 mm 1,655.8 600 mm 6,089.1 Drainage Pipe (Pipe Diameter, Millimeter) No. 1000 mm 138 1200 mm 819 Communication Cable m 63,500 Communication Optical Cable m 17,800 Optical Cable Line of Cable TV Kilometer Aerial Optical Cable 13.5 Optical Cable Main Line of Cable TV Kilometer Aerial Coaxial Cable 25.15 Distribution Net of Cable TV HH 648

Table 7 Type and Quantity of Affected Vulnerable Groups within ROW Affected Vulnerable Groups (No.) Longxin Village Longping Village Type of Vulnerable Groups Popu. Popu. HH (No.) HH (No.) (No.) (No.) “Five Guarantees Family”1 7 12 0 0 Household Living under Minimum Live Guarantee (MLG)2 10 35 0 0 Female-Headed Family 15 40 0 0 Total 32 87 0 0 Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/promises; and, 2 Households living under MLG are classified as the poor households.

3. APPEALS AND GRIEVANCE PROCEDURES

The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

4. LEGAL FRAMEWORK AND POLICIES

The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. The land acquisition, demolition and resettlement of this project will be complying with the laws and regulations of PRC, local government and ADB:

4.1 Eligibility and Principles of Compensation

The principle of the compensation and entitlements established for the Project are as follows: (i) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre project standard of living, with the prospect of improvement; (ii) All the APs, with and without certificates, are to be taken into consideration and accounted for; (iii) Compensation should not be paid to those people who occupy land or construct structures and auxiliaries in the project area after cut-off date determined by the local government; (iv) Adequate compensation should be provided to the APs timely; (v) Where land allocation per-capita is not sufficient to maintain the previous livelihood standards, other income generating activities will

be provided for; (vi) A preferential policy will be provided to vulnerable groups in such things as compensation, housing assignment, transfer and employment; (vii) All the APs will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans and project timing; and (vi) Close monitoring and timely actions will be carried out to identify and resolve any problems.

4.2 Compensation Standards and Entitlements

Compensation for land acquisition, and residential house and non-residential house (institution and enterprise) demolishment will be paid to all users with or without legal certificates, including APs settled on the land and they are included in the final AP list or are able to prove their occupation of affected plots before the cut-off date determined by WMG. The payment will be made in the forms of “cash” and “replacement house at property right exchange” according to the class and type of land and dwellings. The relocated households will also receive a relocation allowance. Compensation for standing crops, auxiliaries and other assets, basic infrastructures and facilities will also be paid directly to the affected owners. Any income loss from production/sales and wages will be paid in cash to the APs. The loss of institutions and enterprises will also be compensated in cash. Table 8 presents the eligibility, compensation rates and entitlements.

Table 8 Eligibility, Compensation Rates and Entitlements Type of Agency Level of Impact Entitled Persons Compensation Policy & Standards Losses Responsible Permanent State-owned land Wuzhou Municipal Land Reserve Centre Institution land: CNY84,00/mu PMO, IA and land In total,1,288.44 mu of state land (950.39 mu Enterprise land: CNY303,600/mu ROs acquisition road and reserve land, 178.72 mu institution No compensation will be paid for road and reserve (862 rural land and 159.33 mu enterprise land) will be land as it has been acquired and reserved by households acquired permanently for the project. WLRC and owned by the government now. and 3,221 Collective land The affected villages or groups will receive 30% of Compensation rates are CNY 23,220/mu for PMO, persons) 815.56 mu collective-owned land will be land compensation in cash. The APs will receive 70% dryland, CNY 31,875/mu for paddy land, CNY WDSAIMC, acquired permanently for the project, of land compensation, 100% resettlement subsidy and 78,771/mu for vegetable land, CNY 49,179/mu for WLRB, and including 436.56 mu from Longxin Village of standing crops in cash. fish pond, CNY 550/mu for house plot, CNY ROs Hongling Area (45 mu dryland, 25 mu paddy 23,872/mu for orchard land, CNY 13,416/mu for land, 56 mu vegetable land, 101 mu fish wood land, CNY 13,000/mu for village road, and pond, 60 mu house plot and 149.56 mu other 2,064 for river bottom land. land) and 379 mu from Longping Village of Sanlong Area (78 mu dryland, 15 mu paddy land, 53 mu vegetable land, 31 mu fish pond, 12 mu house plot and 190 mu other land). Residential With structure built thereon. 57,187.13 m2 Households All affected APs will be provided with Compensation for the affected structures at full PMO, structures (289 residential structures in total, including (35 cash compensation or cash plus replacement costs of materials and labors with no WDSAIMC, rural 10,646.94 m2 frame, 33,050.29 m2 brick- households replacement house at exchange of deduction for depreciation or salvageable ROs, WLRB, households or concrete, 9,352.06 m2 brick-wood, and without property rights in the planned newly-built materials. The compensation standards for WHDAO, 1,374persons) 4,137.84m2 simple structures. house resettlement sites or other communities structures ONLY are: CNY470/m2 for frame, CNY Changzhou certificates) in the city at APs’ preference . 420/ m2 for brick-concrete, CNY330/ m2 for brick- District 4,984.86 m2 residential structure without wood, and CNY180/m2 for simple structure. For Government, house certificates All users with or without legal house compensation standard for house plot is and VC certificate papers including AP settled on CNY500/m2 for each square meter structure the land after 29/08/98 (Land Law) as demolishment. long as they are included in the final AP list or are able to prove their occupation Households without house certificates will be of affected plots before the cut-off date compensated at the same rates as households determined by WMG. The cut-off date with house certificates. will be determined by WMG in collaboration with relevant organizations Relocation allowance will be paid to the APs in

Type of Agency Level of Impact Entitled Persons Compensation Policy & Standards Losses Responsible involved, including PMO, IA, WLRB, cash at CNY3/m2 and CNY30/m2 for housing WHDAO, and district government. Illegal transition allowance. land-use, construction of temporary structures will not be compensated after the notification of cut-off date. WMG, IA, WLRB and WHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. WMG will publicize the cut- off date on newspaper of “Wuzhou Dairy” and community bulletin board once the date is decided.

Type of Agency Level of Impact Entitled Persons Compensation Policy & Standards Losses Responsible and 10 mu and 293 APs in affected 10 institutions All users with or without legal house compensated at CNY84,000/mu, the structures Changzhou enterprises and 159.33 mu with 342 APs of affected 10 certificate papers including AP settled and auxiliary items will be compensated at District (635 enterprises) on the land as long as they are included CNY9,100/mu and will be assessed based on Government, employees, in the final AP list or are able to prove evaluation value by qualified real estate evaluation WHDAO including 293 their occupation of affected plots before agency, and CNY9,700 will be paid as relocation persons in the cut-off date. The cut-off date will be allowance. Loss of production stoppage will be affected determined by WMG. The cut-off date compensated at CNY1,500 per unit. institutions and will be determined by WMG in 342 persons in collaboration with relevant The land acquisition of affected enterprises will be affected organizations involved, including PMO, compensated at CNY303,600/mu, the structure enterprises) IA, WLRB, WHDAO, and district and auxiliary items will be compensated at government. Illegal land-use, CNY473,000/mu and will be assessed based on construction of temporary structures will evaluation value by qualified real estate evaluation not be compensated after the agency, and CNY9,700 will be paid as relocation notification of cut-off date. WMG, IA, allowance. Loss of production stoppage will be WLRB and WHDAO could take compensated at CNY1,500 per unit. photos/video of the places on the cut- off date to prevent further influx beyond the cut-off date. WMG will publicize the cut-off date on newspaper of “Wuzhou Dairy” and community bulletin board once the date is decided. Affected Salary loss will be paid to the affected Subsidy for loss of working time paid to APs is PMO, employees employees for loss of 15 working days CNY35/day in 15 stoppage days, with a total of WDSAIMC, during production/business stoppage. CNY525 for each affected employee as regulated ROs, by WMG. Changzhou District Government, and VC Ground 250 10KV electrical poles, 13 steel towers, Affected Owners Cash compensation will be paid to the affected PMO, attachments, 23,613 m power cables, 15,400 m 400V owners: CNY2,500/each for 10KV electrical pole, WDSAIMC, including basic power cables, 500 electrical cables, 145 CNY30,000/each for steel tower, CNY40/m for ROs, infrastructures 380V electrical poles, 3 20KVA transformers, power cable, CNY40/m for 400V power cables, Changzhou and special 7 30KVA transformers, 4 50KVA CNY40/m for electrical cable, CNY2,500/each for District

Type of Agency Level of Impact Entitled Persons Compensation Policy & Standards Losses Responsible facilities transformers, 2 80KVA transformers, 17 380V electrical pole, CNY20,000/each for 20KVA, Government, 100KVA transformers, 2 125KVA 30KVA, 50KVA, 80KVA, 100KVA and 125KVA and VCs transformers, 3 160KVA transformers, 1 transformer, CNY25,000/each for 160KVA and 180KVA transformer, 15 200KVA 180KVA transformer, CNY30,000/each for 200KVA transformers, 8 250KVA transformers, 10 and 250KVA transformer, CNY40,000/each for 315KVA transformers, 10 400KVA 315KVA transformer, CNY50,000/each for 400KVA transformers, 5 500KVA transformers, 6 transformer, CNY80,000/each for 500KVA and 630KVA transformers, 4 800KVA 630KVA transformer, CNY100,000/each for transformers, 2 1000KVA transformers, 3 800KVA transformer, CNY150,000/each for 1250KVA transformers, 4 1600KVA 1000KVA transformer, CNY200,000/each for transformers, 1 2500KVA transformer, 20 1250KVA and 1600KVA transformer, tombs, 29.1 m DN15mm water pipe, 675.6 m CNY350,000/each for 2500KVA transformer, DN20mm water pipe, 76.3 m DN25mm water CNY500/each for tomb, CNY50/m for DN15mm pipe, 24 m DN40mm water pipe, 1,978.64 m water pipe, CNY60/m for DN20mm water pipe, DN50mm water pipe, 65 m DN65mm water CNY70/m for DN25mm water pipe, CNY80/m for pipe, 565.6 m DN80mm water pipe, 2,447 m DN40mm water pipe, CNY150/m for DN50mm DN100mm water pipe, 2,427 m DN150mm water pipe, CNY100/m for DN65mm water pipe, water pipe, 1,263 m DN200mm water pipe, CNY240/m for DN80mm water pipe, CNY300/m for 466 m DN250mm water pipe, 1,655.8 m DN100mm water pipe, CNY450/m for DN150mm DN300mm drainage pipe, 6,089.1 m water pipe, CNY500/m for DN200mm water pipe, DN600mm drainage pipe, 138 m DN1000mm CNY600/m for DN250mm water pipe, CNY400/m drainage pipe, 819 m DN1200mm drainage for DN300mm drainage pipe, CNY600/m for pipe, 63,500 m communication cable, 17,800 DN600mm drainage pipe, CNY1,000/m for m communication optical cable, 13.5 km DN1000mm drainage pipe, CNY1,200/m for optical cable line of cable TV, 25.15 km DN1200mm drainage pipe, CNY20/m for optical cable main line of cable TV, and 648 communication cable, CNY30/m for households cable net of cable TV communication optical cable, CNY30,000/km for optical cable line of cable TV, CNY20,000/km for optical cable main line of cable TV, and CNY100/household for cable net of cable TV

5. RESETTLEMENT AND REHABILITATION PLAN

The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: i) compensation should be paid in cash or physical replacement; ii) development resettlement is promoted. The livelihood rehabilitation plan will be based on the provision of: a) various employment and income generation opportunities during the Project construction and operation phases; b) development of self-employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry- cleaning house, entertainment and catering services); c) provision of technical training to the APs to increase their skills to be employed in other institutions, enterprises and businesses; iii) implement the resettlement program properly, comply with related compensation policies, and ensure that the production and living conditions of the affected people are increased or at least restored; iv) the resettlement plan should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration; v) the APs should be consulted for the development of the resettlement plan and for the compensation rates; and vi) women’s rights and interests should be fully taken into consideration of the Project.

For residential houses and non-residential (institutions and enterprises) houses to be demolished, compensation will be paid to owners, including those without house certificates. The payment will be made in cash according to the appraised value of the property. The households, institutions and enterprises that have to relocate will also receive a relocation allowance. Compensation for standing crops, auxiliaries and other assets will also be paid directly to the APs. Income losses resulting from reduced production /sales and wages caused by the Project will be compensated in cash. The resettlement strategy encompasses (i) the replacement of housing, and (ii) the restoration of livelihoods and income. For people losing housing, there are two resettlement options – i) to receive cash compensation and/or ii) replacement house at property rights exchange. The project management office (PMO), implementing Agency (IA), Resettlement Offices (ROs), and local governments will provide necessary assistance for relocation during resettlement implementation.

The measures for economic rehabilitation include: (i) provision of employment opportunities during the project construction and operational phases; (ii) non-agricultural production, including development of self-employed secondary and tertiary businesses (i.e. clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment and catering services); and (iii) provision of technical training to the APs to increase their skills to be employed in other institutions, enterprises and businesses. Relocated institutions and enterprises will be provided with the options of compensation and resettlement. The same institutions and enterprises will reemploy the affected employees, and no job loss is expected. For vulnerable groups, attention and assistance will be given to their special needs and expectations. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, housing arrangement, special fund and MLG, and assistance to restore their living conditions and incomes.

6. Cost and Schedule

The resettlement costs are included in the overall budget of the Project. The total cost of

resettlement for the Project is estimated to be CNY 255.4 million, equivalent to US$ 36.49 million in 2008 prices, including 15% contingencies (physical and price). Resettlement implementation will be scheduled in stages to coincide with the overall Project schedule. The land acquisition will start from January 2009 to December 2012. The construction of the resettlement area within the same village of Longxin will be implemented from March 2009 to December 2010. APs will move into the new resettlement houses by the end of December 2011. It is planned that construction will not take place before APs are fully compensated and relocated to new houses. It is planned that the land acquisition shall be completed before the start of Project construction. Civil works can not be started before compensation is paid to APs in full in accordance with recently promulgated State Council Decree #31.

APPENDIX 2 TOR FOR EXTERNAL MONITORING AND EVALUATION

A. Introduction

According to the requirements stipulated in the “Regulations on Construction Supervision” promulgated by the Ministry of Construction of the People’s Republic of China (PRC) in 1995, all construction projects shall be properly supervised. It is also a requirement of the Asian Development Bank (ADB) that loan projects that result in land acquisition and resettlement be properly monitored and evaluated. In order for the implementation of the land acquisition and resettlement program of the Guangxi Wuzhou Urban Development Project (GWUDP) to comply with the provisions of the Resettlement Plan (RP), monitoring of implementation, both “internal” and “external”, will be carried out during and after the implementation of the Project.

An independent monitoring agency (Monitor) will be engaged through competitive tenders for the external supervision, monitoring and evaluation. The Consultant will be a PRC consulting entity who has experience in ADB or World Bank projects dealing with resettlement issues.

Monitoring and evaluation will include, but not be limited to:

z Monitoring the progress and effectiveness of RP implementation; and, z Evaluation of income restoration and post-resettlement conditions of the APs and host communities.

B. Objectives and Requirements of Monitoring and Evaluation

The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

z Economic situation prior to and after displacement of land or housing; z Timely disbursement of funds; z Environmental conditions; z Social adaptability after resettlement; z Rehabilitation of the vulnerable groups; z Measures taken to restore affected production and livelihoods of the APs, institutions and enterprises; and, z Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project area.

Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwards. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IA, local officials, village leaders, management staff of institution and enterprise, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, other vulnerable groups and unemployed workers.

C. Monitoring Indicators

The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

z Disbursement of entitlements to affected households and institutions and enterprises: compensation, housing, employment, and necessary assistances as specified in the RP. z Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed. z Provision of alternative housing: the affected persons must move into their alternative housing at least one month before the relocation; the compensation for construction of houses should be equivalent to the replacement cost; the affected persons must receive on time their entitlements regarding relocation allowance. z Restoration of basic infrastructures and special facilities: all necessary infrastructures and special facilities should be restored at the resettlement sites at least up to a standard equal to the standard at the original location; the compensation for all infrastructure and special facilities should be sufficient to reconstruct it to the same quality. z Level of AP’s satisfaction: level of APs’ satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored. z Standard of living: Throughout the implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation. z Reemployment of affected staff and workers, and compensation of lost wages. z Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

D. Special Considerations

Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

z The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluation unit will also provide recommendations and assistance to the EA in respect of women’s issues. z Care and attention to vulnerable groups if identified during implementation process: closely monitor living conditions of the poor, elders, the handicapped, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.

z Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Wuzhou Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

E. Contents and Distribution of Independent Monitoring Reports

A monitoring report will include, among other things:

z conclusion of investigation and evaluation; z major existing and potential problems; z recommended mitigation or prevention measures which will be incorporated into a revised plan if necessary; and, z assessment of previous follow-up actions.

The IMA will forward copies of the reports to the Asian Development Bank. The PMO will also submit a resettlement completion report to the ADB, to be followed by post-resettlement impact evaluation reports by the monitor, which should provide further evidence whether adverse effects of the Project have been mitigated adequately, and at least non-affected household income levels have been restored for the APs.

F. Monitoring Schedule

The Monitor will provide the ADB, PMO, IA, ROs, WLAB, WHDAO and relevant departments with monitoring reports every six months during resettlement implementation and annual evaluation reports as well within 2 years after the completion of resettlement implementation. Table 1 provides the resettlement monitoring and evaluation schedule.

Table 1 Schedule for Resettlement Monitoring and Evaluation

No. Report of M&E Date 1 Baseline Survey of Socioeconomic Information January - March, 2008 2 First Monitoring Report 30 June, 2009 3 Second Monitoring Report 31 December, 2009 4 Third Monitoring Report 30 June, 2010 5 Fourth Monitoring Report 31 December, 2010 6 Fifth Monitoring Report 30 June, 2011 7 Sixth Monitoring Report 31 December, 2011 8 Seventh Monitoring Report 30 June, 2012 9 Resettlement Completion Report 31 December, 2012 10 First Annual Evaluation Report 31 December, 2013 11 Second Annual Evaluation Report 31 December, 2014