Resettlement Plan

December 2010

PRC: Guangxi Beibu Gulf Cities Development Project

Qinzhou City Urban Road and Related Infrastructures Component

Prepared by Guangxi Qinzhou Linhai Industry Investment Co., Ltd. with assistance of Beijing Enrimu Science & Technology Consulting Co., Ltd. for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 20 December 2010) Currency unit – Yuan Renminbi (CNY) CNY1.00 = $0.1500 $1.00 = CNY6.6630

ABBREVIATIONS ADB – Asian Development Bank AFs – Affected Families AHs – Affected Households APs – Affected Persons BESTCCL – Beijing Enrimu Science &Technology Co., Ltd. DI – Design Institute BP – Bank Policies DMS – Detailed Measurement Survey EA – Executing Agency F – Females – Qinzhou House Demolishment Administration QHDAO Office QLRB – Qinzhou Land Resource Bureau QMG – Qinzhou Municipal Government QPMO – Qinzhou Project Management Office – Guangxi Qinzhou Linhai Industry Investment GQLIICL Co., Ltd. FSR – Feasibility Study Report GDG – Gangkou District Government GDP – Gross Domestic Product GZAR – Guangxi Zhuang Autonomous Region HDAO – House Demolishment Administration Office HHs – Households IA – Implementing Agency IMA – Independent Monitoring Agency LA – Land Acquisition LAR – Land Acquisition and Resettlement LRB – Land Resources Bureau M – Males M&E – Monitoring and Evaluation MLG – Minimum Living Guarantee OP – Operational Procedures PDG – Port District Government PLG – Project Leading Group PMO – Project Management Office PPTA – Project Preparatory Technical Assistance PRC – Peoples Republic of China RC – Resident Committee RIB – Resettlement Information Booklet RO – Resettlement Office ROW – Right of Way RP – Resettlement Plan S&T – Science & Technology ToR – Terms of Reference WF – Women’s Federation

2 WEIGHTS AND MEASURES ha – hectare km – kilometer Km2 – Square kilometer m – meter m2 – square meter mu – Chinese area measure for land 1mu = 1/15 ha (1 ha = 15 mu)

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

This 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.

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

3 Guangxi Beibu Gulf Cities Cities Development Project

Qinzhou City Urban Road and Related Infrastructures Component

Full Resettlement Plan

Guangxi Qinzhou Linhai Industry Investment Co., Ltd.

Prepared with Assistance of

Beijing Enrimu Science & Technology Consulting Co., Ltd.

20 December 2010

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ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN (English Translation of the signed Endorsement Letter)

The Guangxi Qinzhou Linhai Industry Investment Co., Ltd. (GQLIICL), the implementation agency (IA), together with the assistance of the Beijing Enrimu Science & Technology Consulting Co., Ltd. (BESTCCL) has prepared this full Resettlement Plan (RP) for the Qinzhou City Urban Road and Related Infrastructures Component under Guangxi Beibu Gulf Cities 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, Guangxi Zhuang Autonomous Region and Qinzhou Municipal Government as well as complies with ADB’s policy on Safeguard Policy Statement 2009.

This resettlement plan is based on the feasibility study report (FSR) and measurement and socioeconomic surveys and Qinzhou City 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.

Thanks for all your support and help to Guangxi Beibu Gulf Cities Development Project.

Huang Zhou Vice Mayor of Qinzhou City Chairman of ADB Loan Project Leading Group

4 January 2011

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6 TABLE OF CONTENT

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN ...... 5 TABLE OF CONTENT ...... 6 LIST OF ACRONYMS AND MEASURES ...... 9 EXECUTIVE SUMMARY ...... 10

I. INTRODUCTION ...... 13

1.1 Background ...... 13 1.2 Description of the Project ...... 13 1.3 LAR Impacts of the Project ...... 14

II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT ...... 18

2.1 Measures Taken to Avoid or Minimize LAR Impacts ...... 18 2.2 Methods of LAR Impact Assessment ...... 18 2.3 Scope of LAR Impacts ...... 19

III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION ..... 30

3.1 Socioeconomic Profile of Qinzhou City ...... 30 3.2 Socioeconomic Profile of the Affected Area and APs ...... 30 3.2.1 Demographic Features of APs ...... 31 3.2.2 Residential Houses ...... 32 3.2.3 Land Use ...... 33 3.2.4 Financial Situation of Households ...... 33 3.2.5 Vulnerable Groups ...... 34 3.2.6 Gender Perspectives on Resettlement ...... 35

IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE ...... 37

4.1 Public Participation Strategy ...... 37 4.2 Methods and Measures of Public Participation ...... 37 4.3 Public Participation during RP Preparation ...... 37 4.4 Women’s Participation ...... 38 4.5 Information Disclosure ...... 38 4.5.1 Resettlement Information Brochure ...... 38 4.5.2 Distribution of the Resettlement Plan ...... 39 4.6 Public Participation Plan during RP Implementation ...... 39

V. APPEALS AND GRIEVANCE PROCEDURES ...... 42

VI. LEGAL FRAMEWORK AND POLICIES ...... 43

6.1 Applicable LAR Laws, Regulations and Policies ...... 43 6.2 ADB’s Involuntary Resettlement Policies ...... 43 6.3 Related Laws and Regulation of PRC ...... 45 6.3.1 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued by State Council, October 2004 45 6.3.2 PRC Land Administration Law ...... 46 6.3.3 Urban House Demolition Management Regulation of PRC ...... 47 6.3.4 Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law ...... 47

7 6.3.5 Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC ... 49 6.4 Gaps between ADB and Chinese Policies ...... 51 6.5 Compensation Criteria and Principles ...... 55 6.5.1 Entitlement ...... 55 6.5.2 Compensation Principles ...... 55 6.5.3 Compensation Rate ...... 55

VII. ENTITLEMENT MATRIX ...... 58

VIII RESETTLEMENT AND REHABILITATON PLAN ...... 64

8.1 Objectives and Principles of Resettlement Program ...... 64 8.2 Compensation and Rehabilitation Plan ...... 64 8.2.1 Resettlement Options and Plan ...... 64 8.2.2 Employment Opportunities Generated by the Project ...... 73 8.2.3 Social Insurance ...... 75 8.2.4 Project Related Income Generation Opportunities ...... 75 8.2.5 Provision of Technical Training to the APs ...... 76 8.2.6 Rehabilitation Plan of Ground Attachments ...... 77 8.2.7 Special Concerns during Resettlement Process ...... 77

IX. COST ESTIMATES ...... 79

9.1 Compensation and Resettlement Costs ...... 79 9.2 Annual Budget ...... 81 9.3 Flow of Fund ...... 82

X. LAR IMPLEMENTATION SCHEDULE ...... 83

10.1 Principles ...... 83 10.2 LAR Implementation Schedule ...... 83

XI. INSTITUTIONAL FRAMEWORK ...... 89

11.1 Project Resettlement Organizational Set-up ...... 89 11.2 Responsibilities ...... 91 11.3 Institutional Capacity Strengthening ...... 94 11.3.1 Assessment of Institutional Capacity ...... 94 11.3.2 Institutional Capacity Building and Training ...... 94

XII. MONITORING, EVALUATION AND REPORTING ...... 96

12.1 Internal Monitoring ...... 96 12.2 External Monitoring and Evaluation ...... 97 12.2.1 Objectives and Requirements of M&E ...... 97 12.2.2 Methodology ...... 98 12.2.3 Major Tasks ...... 99 12.3 Reporting Requirements ...... 99

APPENDIX 1: Resettlement Information Booklet ...... 100 APPENDIX 2: TOR for External Monitoring and Evaluation ...... 115

8 LIST OF ACRONYMS AND MEASURES

ADB - Asian Development Bank AFs - Affected Families AHs - Affected Households APs - Affected Persons BESTCCL - Beijing Enrimu Science &Technology Co., Ltd. DI - Design Institute BP - Bank Policies DMS - Detailed Measurement Survey EA - Executing Agency F - Females QHDAO - Qinzhou House Demolishment Administration Office QLRB - Qinzhou Land Resource Bureau QMG - Qinzhou Municipal Government QPMO - Qinzhou Project Management Office GQLIICL - Guangxi Qinzhou Linhai Industry Investment Co., Ltd. FSR - Feasibility Study Report GDG - Gangkou District Government GDP - Gross Domestic Product GZAR - Guangxi Zhuang Autonomous Region HDAO - House Demolishment Administration Office HHs - Households IA - Implementing Agency IMA - Independent Monitoring Agency LA - Land Acquisition LAR - Land Acquisition and Resettlement LRB - Land Resources Bureau M - Males M&E - Monitoring and Evaluation MLG - Minimum Living Guarantee OP - Operational Procedures PDG - Port District Government PLG - Project Leading Group PMO - Project Management Office PPTA - Project Preparatory Technical Assistance PRC - Peoples Republic of China RC - Resident Committee RIB - Resettlement Information Booklet RO - Resettlement Office ROW - Right of Way RP - Resettlement Plan S&T - Science & Technology ToR - Terms of Reference US$ - United States Dollar WF - Women’s Federation km2 - Square Kilometer % - Percentage mu - Chinese area measure for land, 1mu = 1/15 ha (1 ha = 15 mu) Chinese currency Yuan CNY - CNY 1 = 1/ 6.80 $US ($US 1 =CNY 6.80)

9 EXECUTIVE SUMMARY

1. The Qinzhou City Road and Related Infrastructures Component is composed of: No.1 Road (northern section); No.2 Road Northern Section (Phase II); No. 3 Road Northern Section (Phase II); 1st Street; 3rd Street (Phase II); Jingu Outer Ring Road (Phase II), with a total of 6 urban roads, three vertical, two horizontal and one ring road, and total length of 12.208 km. Related Infrastructures include traffic lights, drainage, sewerage pipeline and landscaping. The Project IA is Guangxi Qinzhou Linhai Industry Investment Co., Ltd. (GQLIICL).

2. The Project will mainly involve land acquisition and structure demolishment in Jingu Resident Committee of Qinzhou Port Economic Development Area, Qinzhou City. A total of 1,960.83 mu of collective land will be acquired permanently, including 581.05 mu (29.63%) farmland. The permanent land acquisition will affect 370 households or 1,634 persons. Temporary land occupation will use 91.56 mu with 52 households or 238 APs to be affected.1 A total of 15,974.58 m2 of residential houses will be demolished, relocating 52 households or 216 persons. Associated ground attachments will also be affected, such as fenced walls, well, animal pens, toilet, grave, fruit tree, sunning ground, shrimp pond, electricity pole, low-voltage power lines, 220V power lines, cable lines, 12 core overhead fiber optic cable lines and 100 pairs of overhead cable lines, etc., including 546.62 mu shrimp ponds illegally developed by local residents or villgers from other outside villages to be moved. The total numbers of the affected households and populations is 423 rural households and 1,861 rural persons. Of the total affected households and populations, 167 households or 739 persons are vulnerable group in the Project area, including 13 households or 37 persons under “five guarantees”, 59 households or 262 persons under minimum living guarantee (MLG), 7 households or 33 persons are disabled, 73 households or 356 persons are families in extremely difficulties, and 15 households or 51 persons are women-headed.

3. In order to avoid or minimize land acquisition and resettlement, there was close consultation with the local officials, Jingu resident committee (RC) during the preliminary and final Feasibility Study stages for the optimal and proper engineering schemes of the Project.

4. The compensation of the permanent land acquisition is based on the Land Administration Law of PRC, amended in 2004, Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004, Urban House Demolishment Management Regulations of PRC, GZAR “Land Administration Law”, GZAR Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC. Unified Standard of Annual Output Value Document issued by the People's Government of Qinzhou City, which has been carried out since 27th January, 2010. The RP was prepared to comply with ADB’s Safeguard Policy Statement (2009). Based on the consultations with local governments and those affected, and general practice in Qinzhou City, the resettlement principles established for the Project are: (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives; (ii) compensation and entitlements provided must be adequate to allow those affected to at least maintain

1 ADB’s Safeguard Policy Statement (2009) trigger for involuntary resettlement changed the terminology of "affected persons" to "displaced persons" which are defined as persons who are physically and/or economically displaced as a result of involuntary acquisition of land or involuntary restrictions on land use or on access to legally designated parks and protected areas. In the PRC, although the resettlement plans maintain the original terminology of “affected persons”, the definition is equivalent to ADB's definition of “displaced persons”.

10 their pre-project standard of living, with the prospect of improvement; (iii) land temporarily occupied and the period for disruption are to be kept to a minimum; (iv) all the people affected, legal and illegal, are to be taken into consideration and accounted for; (v) resettlement plan should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans; (vi) all those affected will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans, and project timing; (vii) resettlement plan should be coordinated with such things as regional development, economic development and environmental protection; and (viii) practical and feasible measures should be formulated to restore the affected items; (ix) a preferential policy and assistance will be provided to vulnerable groups in such things as employment; and (x) close monitoring and timely actions will be carried out to identify and resolve any problems. For the 52 households who will be physically displaced, requiring relocation, compensation for the affected structures at full replacement costs will be paid to them. Relocation allowance will also be provided to them. All of the APs will be relocated to the centralized Jiduntou Resettlement Site in the same village. The IA and local government will assist the APs on the selection and allocation of the new houses and relocation.

5. The people affected have been notified about the key elements of the RP. The key elements of the RP have been notified to the affected HHs include the project information, LAR impacts, laws, regulations and compensation, livelihood and income rehabilitation plan, and implementation schedule. During the “process of this notification” through surveys and consultation meetings, the majority of the affected households request that if their land has to be acquired and structures have to be demolished, they request to get fair and timely compensation, employment opportunities, and children’s education. The APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them as agriculture farming losses money with heavy workload and the Project area is getting urbanized in fast speed. They are not willing to engage in agricultural production any more but hope to get the cash compensation and future employment. The affected households would like to use compensation payment to do some businesses or get some training to be employed in enterprises and institutions. For those who will lose their houses, they expressed that they would use the compensation payment to purchase new houses in the centralized Jitougou resettlement site of the same village. They also wish the Project could be constructed as early as possible and they could get compensation timely. All of these concerned raised have been incorporated in the planning and implementation of resettlement program, and relevant mitigation measures have been formulated and will be implemented during the Project implementation phase. The resettlement information booklet will be distributed to affected community and households before 15 December, 2010. The RP approved by Qinzhou City Government will be redistributed to the resident committee before 15 December, 2010 to any one wishing to consult the document at the resident community office. At the same time the RP will be posted on the ADB website in the third week of December 2010. The RP will be updated based on detailed measurement survey (DMS) and will be disclosed to APs and submitted to ADB for review and approval. The Qinzhou PMO and GQLIICL will be responsible for supervising implementation, continuing public consultation, monitoring progress and responding to grievances. The grievance address procedures are well established and explanations are included in the RP and resettlement information booklets.

6. For people losing land permanently, “cash” compensation will be provided, and no land readjustment will be made which has been agreed by the APs and resident committee. The compensation will be based on full replacement value. Similarly, cash compensation for structures and ground attachments will also be on

11 replacement value with no depreciation. The households that have to relocate will receive “cash” to purchase their new houses in the centralized Jiduntou Resettlement Site within the same village and also they will receive a relocation allowance in cash. The PMO, IA, RO and local government will provide necessary assistance during LAR implementation, such as selection and allocation of new houses and relocation. The measures for economic rehabilitation include: (i) provision of 2,770 person-years of employment opportunities to the local community people, including the APs in labor force during the Project construction and 120 public welfare job positions during operational phases; (ii) provision of social insurance, with 30% contribution from the local government and 70% contribution from rural collectives and farmers (The land lost farmers pay 20% based on the 40% of the average wage of the urban workers in last year); (iii) provision of the annual employment opportunities generated induced by the Project and related development projects of Qinzhou Port Economic Development Zone if the APs would like to take. The QMG 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; (iv) development of tertiary industry; and (v) provision of technical training to 1,102 APs in labor force to increase their skills to be employed in institutions, enterprises and businesses.

7. For the people who will lose their land temporarily, cash compensation of crops will be paid to the affected people; cash compensation of land recovery fee will be paid to the contractors. The land will be restored to original condition and keep the same quality as before by the contractors. Based on the estimate of the IA, the Project construction will generate 2,770 person-years or 33,240 person-years or CNY 8.31 million days short-term employment opportunities. The APs will be given priority to be employed during the 36 months project construction with income earnings over CNY 1,500 per month.

8. For residential houses to be demolished, “cash” will be paid to the affected people. They will move to the resettlement site of Jiduntou RC through purchase of commercial houses or economy houses. The households that have to be relocated will also receive a relocation allowance and relocation transit allowance. Compensation for ground attachments will be paid to the affected owners.

9. The cost estimate for land acquisition and resettlement is CNY 212.8865 million or US$ 31.3068 million at the prices of 2010, including compensation for permanent land acquisition, temporary land occupation, residential house demolishment, auxiliaries, relocation allowances, infrastructures and special facilities, relevant land taxes, M&E, other costs, and contingency. The land acquisition and resettlement activities will occur between February 2011 and March 2014. Construction will not take place before the APs are fully compensated and relocated, and all arrangements are made to commence the livelihood rehabilitation activities and the APs are registered for these. A community based grievance address procedures has been well established and explanations are included in the RPs and RIBs. Internal and external monitoring of the RP implementation will be conducted to ensure successful implementation of the RP. Monitoring methodologies are specified in the RP. Internal supervision and monitoring will be done by the IA to ensure compliance with the provisions of the RP. The PMO and IA have agreed to a set of supervision milestones with ADB, to ensure timely and effective implementation of resettlement activities. An independent monitoring agency under contract to the PMO will carry out external monitoring and evaluation. External monitoring reports will be prepared every 6 months during implementation and annually for 2 years after completion of resettlement. These reports will be submitted to ADB, the PMO and the IA, and will be uploaded to the ADB website.

12 I. INTRODUCTION

1.1 Background

10. The Qinzhou City Urban Road and Related Infrastructures is one Component of Guangxi Beibu Gulf Cities Development Project. The Proposed Project lies in Qinzhou Port Xincheng Sub-District of Qinzhou City. According to Guangxi Beibu Gulf Economic Zone Development Plan, Qinzhou Urban Master Plan and Qinzhou Port Xincheng District Detailed Control Plan, Qinzhou Port Xincheng District is oriented as associated residential service area, serving for Qinzhou Port, and providing infrastructures and associated facilities to serve industries in Port District, including commerce, management, trade and exhibition, etc. Therefore, the Project is closely related to the industrial development of the Qinzhou Port District. With so many industrial projects setting up in Qinzhou Port District, a large number of job opportunities have been created and population has also been increasing. As a result, the existing residential and related facilities can not satisfy the needs, the construct of Xincheng Sub-District becomes more and more urgent. The Qinzhou City Urban Road and Related Infrastructures Component is located in the newly developed residential and commercial area of Xincheng District, it particularly serves for the workers and their families living in the Qizhou Port Industrial Zone. The Project is in the north end of Qizhou Port Industrial Zone, it is the nearest base between Qizhou Port Industrial Zone and Qinzhou City; it is an important bridge connecting Qinzhou urban area and the port area.

11. According to the plan, in the coming decade, Qinzhou Port will build a total of eight industrial zones including Preliminary Industrial Zone, Jingu Petro-chemical & Logistics Park, etc., with land use close to 810 km2, and by then the industries of Qinzhou Port District will be intensively concentrated with industries and large number of population. It is expected that the registered resident population is going to exceed 250,000 persons, of which, 2/3 of the population will live in Xincheng District, totaling about 170,000. With such a large population, the travelling volume of daily life and work also will increase in a large degree; therefore, the construction of complete road network is needed. The construction of the Project will further improve the infrastructure construction of Qinzhou Port. It has great significance to improve current traffic conditions and accelerate development speed of Qinzhou Port, increase the urbanization level, expand opening up as well as speed up economic development.

1.2 Description of the Project

12. The scope of the Project construction includes: No.1 Road (northern section); No.2 Road Northern Section (Phase II); No. 3 Road Northern Section (Phase II); 1st Street; 3rd Street (Phase II); Jingu Outer Ring Road (Phase II), with a total of 6 urban roads, three vertical, two horizontal and one ring road, and total length of 12.208 km. Related Infrastructures include traffic lights, drainage, sewerage pipeline and landscaping. Figure 1-1 the layout map of the proposed Qinzhou City Urban Road and Related Infrastructures Component. The total Project investment is CNY 1,158.2362 million, of which CNY 680 million will be financed by ADB loan, accounting for 59%; CNY 290 million from local finance bureau, accounting for 25%, and CNY 188.2362 million self-financing of the IA, accounting for 16%. The Project will take a total of 37 months construction period.

13 Figure 1-1: Layout Map of the Proposed Qinzhou City Urban Road

1.3 LAR Impacts of the Project

13. Within the ROW of Qinzhou City Urban Road Network, the land use includes paddy land, dry land, vegetable land, orchard land, grassland, wood land, water pond, homestead and fish pond. Within the ROW, there are also some structures. The scope of the Project impacts is mainly determined by the measurement survey on the basis of the FSR. The construction of the Project will involve permanent land acquisition, temporary land occupation, residential structure demolishment, auxiliaries, and basic infrastructures and special facilities.

14. A total of 1,960.83 mu collective-owned land of Jingu RC will be acquired permanently for the Project. Due to the permanent land acquisition, a total of 370 households or 1,634 populations will be affected. All the households will be affected by farmland and non-farmland. The affected households are mainly due to loss wood land, grass land, paddy land, and fish pond.

15. The land to be acquired (land loss) for the Project only accounts for 19.05% of Jingu RC’s collective-owned land and 47.09% farmland; and accounts for 24.2% of the total farmland area for the affected households, and 12.25% of the total income for the affected households at average, or CNY 2,650.90 per household per year. As a result, it can be seen that the impact of the land and farmland acquisition to the collective and the family is serious. However, due to the land loss, associated proportion of income will also be lost. Therefore, the income rehabilitation for the APs has been taken into consideration of the RP.

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16. The land use for construction road access, sites and materials storage will temporarily occupy 91.56 mu of land, including 12.82 mu paddy land, 4.58 mu vegetable land, 10.07 mu dry land, 11.90 mu fish pond, 32.96 mu wood land, 17.4 mu wasteland, and 1.83 mu homestead. A total of 52 households or 238 persons will be affected by temporary land occupation. They will be affected mainly due to the loss of wood land, paddy land, fish pond and dryland.

17. Because of the land acquisition, 15,974.58 m2 of residential structures will be demolished, including 7,375.9 m2 brick-concrete structures, 6,856.46 m2 brick-tile structures and 1,742.22 m2 mud house. In total, 52 rural households or 216 rural persons of Jingu Resident Committee will be relocated (although the village committee has been changed into RC, but the residents still keep their rural household registration).

18. In summary, the Qinzhou City Urban Road Network and Related Municipal Infrastructures Component will affect 423 households or 1,861 persons by permanent land acquisition, temporary land occupation, house demolition, and ground attachments. No ethnic minorities will be affected.

19. Based on the design of the Project construction map and the detailed measurement survey (DMS) between December 2010 and January 2011, the RP will be updated and submitted to ADB for review and approval.

1.4 Preparation of RP

20. In line with the ADB’s Safeguard Policy Statement (2009) and the relevant laws, regulations and guidelines issued by the governments of People’s Republic of China, Guangxi Zhuang Autonomous Region and Qinzhou City, the RP has been prepared by Beijing Enrimu Science & Technology Consulting Co., Ltd. (BESTCCL) on behalf of Guangxi Qinzhou Linhai Industry Investment Co., Ltd. (GQLIICL). The RP will be reviewed and approved by Qinzhou Municipal Government (QMG) and ADB.

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

(1) Design Basis:

 Feasibility Study Reports;  Economic and Social Development Statistical Communique of Qinzhou City in 2010;  Urban Development Master Plan of Qinzhou City; and,  “Eleventh-Five Years Plan” of Qinzhou City.

(2) Legal and Policy Basis

 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;  Land Administration Law of the PRC, amended in 2004;  Implementation Regulation for Land Administration Law of PRC; December 1998;  Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93];  Temporary Regulations on Farmland Acquisition Tax of PRC, 2008;

15  GZAR “Land Administration Law”, 2001;  Management Law of Urban Real Estate of PRC, 1994;  Guidelines for Valuation on Urban House Demolishment of PRC; 2004;  Urban Housing Demolition Management Regulations of the PRC issued in 2001;  Temporary Regulations of Farmland Acquisition Tax, 2008;  Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003;  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;  Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52];  Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) 88 Hao 59];  Unified Standard of Annual Output Value Document [Qinzhengfa (2010) No. 2] issued by the People's Government of Qinzhou City, 27th January, 2010;  ADB’s Safeguard Policy Statement 2009;  Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998;  Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003;  OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006; and,  ADB’s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010).

(3) Public Participation and Community Consultation Activities

 Visits to the Project affected areas;  Consultation meetings with district government leaders, representatives, and APs between April and May 2010;  Sample socioeconomic survey of affected households in April and May 2010;  Land acquisition and resettlement survey information between April and May 2010;  Focus group discussion during ADB PPTA phase between April and July 2010; and,  Consultation workshops on environment and resettlement in May 2010.

22. The aim is to avoid involuntary resettlement2 wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to restore or enhance livelihoods of displaced persons relative to pre-project levels; and to improve the standards of living of the affected poor and other vulnerable groups.

23. The goal of RP preparation includes: i) Through optimal engineering design to

2 For involuntary resettlement, It means those who have to relocate (displace, losing residence or shelter) and / or have to be re-empolyed (losing land, property, the opportunity of getting property, income or livelihood) due to (i) land acquisition, or (ii) restriction on the use of or access to parks and protected areas established by law.

16 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.

17 II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT

2.1 Measures Taken to Avoid or Minimize LAR Impacts

24. To avoid or reduce land requisition and resettlement (LAR) impacts to the minimum, alternatives have been carefully reviewed in considering of technical, economic, financial, environmental aspects, land acquisition and resettlement feasibilities, and the optimal option has been adopted for the Qinzhou City Urban Road Network and Related Infrastructures Component. By taking into consideration of reducing land acquisition and resettlement impacts, and the life and property security of the residents in the Project Area, the mitigation measures to reduce the LAR impacts have been proposed: 1) strictly control the scope of land acquisition through coordinated surveying and mapping; and 2) avoid agricultural land, the intensive resident area, forest, communication areas, the upper- and middle-stream of drinking water resources protection area, forest biological environment protection area, railway, expressway, high-voltage corridor as much as possible. As a result, Option II has been selected as the option of 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. Option I has the advantages of small volume of earth works, but the number of affected households and populations is larger. From technical consideration, slope changing points are relatively more, relatively steep slope, relatively smaller vertical curve radius and relatively poor vertical alignment. Option II has smaller slope changing points, smaller slopes, large vertical curve radius and relatively better vertical alignment, relatively larger volume of earth works, more structure demolishment and land acquisition, and high initial investment, but the number of affected households and population is smaller than Option I. In addition, Option II will acquire less farmland at 581.05 mu than Option I at 589.12 mu. Although the initial investment of Option II is greater than Option I, it has the advantages of relatively good comfort-ability, less traffic accidents and fuel consumption, and relatively lower life-cycle cost. In addition, considering relatively more earth works for the land leveling of the whole area, the discarded earth of Option II could be used. After comprehensive comparison, Option II is recommended.

Table 2-1: Alternatives to Reduce the Land Acquisition within ROW Item Option I Option II House Land House Land AHs AHs APs (no.) Demolishment Acquisition APs (no.) Demolishment Acquisition (no.) 2 (no.) 2 (m ) (mu) (m ) (mu) 37 Road 1,678 16,208.76 1,933.38 370 1,634 15,974.58 1,960.83 9 Total 379 1,678 16,208.76 1,933.38 370 1,634 15,974.58 1,960.83

2.2 Methods of LAR Impact Assessment

25. 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.

26. Between April and May 2010, under the supervision of PMO and IA, the Qinzhou Port District Government and resident committee (RC) 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.

27. The Project will affect land, house structures, auxiliaries, and basic infrastructures

18 and special facilities. The quantity and category of the acquired lands and demolished structures were surveyed with the participation of the APs. Resident committee and representatives of the residents 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

28. According to the identified impact, the scope of the land acquisition and resettlement of the Project includes permanent land acquisition, temporary land occupation, and residential structure demolishment and auxiliaries. Some basic infrastructures and special facilities will also be affected. It should be noted that the impacts include the engineering components of drainage, sewerage pipeline and landscaping which are within the ROW. Table 2-2 provides the summary of the LAR impacts.

19 Table 2-2: Summary Land Acquisition and Resettlement Impacts Ground Total AHs and Administrative Temporary Land Residential House Attachment Permanent Land Acquisition 1 2 APs to Be Jurisdiction Occupation Demolishment Demolishment 3 Affected (No.) (Shrimp Pond) Total Total Total Collective AHs APs AHs APs Total Area AHs APs AHs APs AHs APs District Community Area Area 2 Area 4 Land (Mu) (No.) (No.) (No.) (No.) (m ) (No.) (No.) (No.) (No.) (No.) (No.) (Mu) (Mu) (mu) 1,960. 91.5 Port Jingu 1,960.83 370 1,634 52 238 15,974.58 52 216 546.62 35 141 423 1,861 83 6 1,960. TOTAL 1,960.83 370 1,634 91.56 52 238 15,974.58 52 216 546.62 35 141 423 1,861 83 Note: 1 Of the total households to be affected by temporary land occupation, 9 households will be affected by permanent land acquisition. 2 AHs and APs are affected by residential house demolishment will also be affected by permanent land acquisition. 3 Of the 35 households to be affected by the shrimp pond demolition, 25 households will also be affected by permanent land acquisition, and 10 households will only be affected by shrimp pond demolishment including 8 households coming from other places outside the area. 4 Please note that the total area of permanent land acquisition exclude the area that the APs planted the trees and have shrimp farming on the land which was not contracted by the village collective, the area of fruit trees and shrimp pond is listed in the impact of the ground attachments.

20 2.3.2 LAR Impacts by Type of Losses

2.3.2.1 Permanent Land Acquisition

29. The Project will acquire 1,960.83 mu of collective-owned land. Table 2-3a and Table 2-3b provide the impacts of permanent land acquisition within ROW.

21 Table 2-3a: Impacts of Permanent Land Acquisition by Community Group Area of Type of Permanent Land Acquisition (Mu) Permanent Affected No. of No. of Collective Community Affected Affected Land Paddy Orchard Vegetable Dry Fish Wood Grass Home- Group Households Population Acquisition Land Land Land land Pond Land Land stead (Mu) Group 62 246 319.72 43.19 18.64 14.29 35.61 39.29 103.21 58.28 7.21 1 Group 43 179 231.97 31.26 13.83 9.86 27.46 30.54 68.73 45.36 4.93 2 Group 27 128 148.64 19.76 8.21 6.75 16.61 20.37 45.23 28.47 3.24 3 Group 33 157 170.87 24.48 10.25 7.52 19.63 23.45 48.96 33.22 3.36 4 Jingu Group 42 166 228.44 33.64 14.62 10.22 25.31 29.73 63.67 46.62 4.63 5 Group 56 223 276.03 43.63 19.67 10.1 29.56 36.76 82.46 47.31 6.54 6 Group 45 212 240.34 23.91 16.36 14.55 27.38 32.67 71.55 48.64 5.28 8 Group 62 323 344.82 53.92 22.35 18.63 33.78 38.57 109.68 60.32 7.57 12 TOTAL 370 1,634 1,960.83 273.79 123.93 91.92 215.34 251.38 593.49 368.22 42.76

22 Table 2-3b: Impacts of Permanent Land Acquisition by Road Section Area of Permanent Collective Land Acquisition (Mu) Name of Road (Road Section) Paddy Dry Vegetable Orchard Grass Wood Water Homestead TOTAL Land land Land Land Land Land Pond Zhonggang Avenue (AK0+065.585 ~ 21.37 21.37 45.80 39.69 146.50 24.42 6.11 305.26 AK1+519.844) Danliu Street (AK0+060.591 ~ 36.25 56.38 44.30 24.16 80.55 100.70 52.36 8.05 402.75 AK4+243.421) No. 3 Road North Section 30.28 37.85 7.57 5.05 80.74 27.80 55.51 5.05 249.83 (BK0+053.059 ~ BK1+364.666) First Street (CK0+060.004 ~ 92.24 29.52 21.03 16.60 66.41 112.50 22.14 8.49 368.93 CK2+698.663) Third Street (Phase II) (DK0+075.619 50.56 10.97 2.86 20.03 6.70 4.29 95.41 ~ DK0+702.503） Jingu Outer Ring Road (EK0+065.995 43.09 59.25 16.16 32.32 80.80 199.30 96.96 10.77 538.65 ~ EK3+911.704) TOTAL 273.79 215.32 91.92 123.93 368.22 593.50 251.39 42.76 1,960.83

23

2.3.2.2 Temporary Land Occupation

30. Qinzhou City Urban Road Network and Related Infrastructure Component will temporarily use 91.56 mu of land. Table 2-4 provides the impacts of temporary land occupation.

Table 2-4: Impacts of Temporary Land Occupation Area of Type of Temporary Land Occupation (Mu) Temporary Affected AHs APs Collective Home Paddy Veg. Dry Fish Wood Waste- Community (No.) (No.) Land - Land Land land Pond Land land Occupation stead (Mu) Jingu 52 238 91.56 12.82 4.58 10.07 11.90 32.96 17.40 1.83 TOTAL 52 238 91.56 12.82 4.58 10.07 11.90 32.96 17.40 1.83 Note: Of the 9 HHs to be affected by temporary land occupation will also be affected by permanent land acquisition.

2.3.2.3 Residential House Demolishment

31. Within the ROW, the Project will demolish 15,974.58 m2 residential structures. Table 2-5a and Table 2-5b provide the area of residential structure demolishment. The area of house ranges from 150 m2 to 580 m2, with average at 307.2 m2 per household. All of the 52 households will be relocated to the new resettlement sites of the nearby Jiduntou community.

Table 2-5a: Demolishment of Residential Structures Affected AHs APs Area of Residential Structure (m2) Community (No.) (No.) Brick-Concrete Brick-Tile Mud Total Jingu 52 216 7,375.9 6,856.46 1,742.22 15,974.58 TOTAL 52 216 7,375.9 6,856.46 1,742.22 15,974.58 Note: AHs and APs are affected by residential house demolishment will also be affected by permanent land acquisition.

Table 2-5b: Demolishment of Residential Structures Area of Residential House Demolishment (m2) Name of Road (Road Section) Brick-Concrete Brick-Tile Mud Total Zhonggang Avenue 136.00 136.00 (AK0+065.585 ~ AK1+519.844) Danliu Street (AK0+060.591 ~ 2,638.00 609.00 3,247.00 AK4+243.421) No. 3 Road North Section 2,153.00 2,175 262.00 4,590.00 (BK0+053.059 ~ BK1+364.666) First Street (CK0+060.004 ~ 406.00 54.00 460.00 CK2+698.663) Third Street (Phase II) (DK0+075.619 ~ 1,526 1,883.10 762.00 4,171.19 DK0+702.503） Jingu Outer Ring Road 1,058.90 1,783.27 528.22 3,370.39 (EK0+065.995 ~ EK3+911.704) TOTAL 7,377.00 5,493.00 1,742.00 15,974.58

24

Table 2-6: Scope of Residential House Demolishment (N＝52 HHs) Scope of Residential House Demolishment AHs % ＜150 m2 0 0.00% 151 m2–200 m2 5 9.62% 201 m2–250 m2 8 15.39% 251 m2–300 m2 0 0.00% 301 m2–350 m2 11 21.15% 351 m2–400 m2 6 11.54% 401 m2–450 m2 10 19.23% 451 m2–500 m2 7 13.46% 501 m2–550 m2 3 5.77% 551 m2–600 m2 2 3.85% >600 m2 0 0.00% Total 52 100.00%

2.3.2.4 Ground Attachments

32. Some ground attachments (including auxiliaries, basic infrastructures and special facilities) will be affected also. The impacts of auxiliaries involve in the affected households, and basic infrastructures and special facilities are the properties of the village or township. Table 2-7 are the impacts of affected ground attachments.

Table 2-7: Affected Ground Attachments Items Unit Quantity Auxiliaries Wells of Drinking Water No. 6 Animal Pens m2 396.91 Fences m 168 Toilets No. 6 Tombs No. 235 Fruit Trees* mu 132.15 Sunning Ground m2 1,562 Shrimp Pond* mu 546.62 Basic Infrastructures and Special Facilities Electric Pole No. 54 Low-Voltage Electricity Power Line m 3,290 220V Electric Power Line 1,000 m 18 Communication Line m 2,090 Overhead Cables (100 paired wires) 1,000 m 16 Overhead Cables (12 wires) No. 14 Note: As the APs planted the trees and have shrimp farming on the land which was not contracted by the resident committee (called village collective before), the area of fruit trees and shrimp pond is listed as the ground attachments.

33. There are 546.62 mu shrimp ponds removal of ground attachments to be affected. All the shrimp ponds within the region are illegally constructed on the salt land owned by the Jingu Resident Committee. Within the Project area, there are a

25 total of 35 shrimp farming households included in the total affected households, of which, 27 households are local, and 8 households from other areas outside of Jingu RC. The production of the shrimp is 200 kg / mu / year. The total shrimp production value in the region is CNY 2,623,776.00 according to the market price of CNY 24 / kg at average.

2.3.2.5 Affected Households and Population

34. In summary, the Qinzhou City Urban Road Network and Related Infrastructures Component will affect 370 households or 1,634 persons for permanent land acquisition, temporary land occupation, house demolition, ground auxiliaries and attachments. No ethnic minorities will be affected.

35. Table 2-8 is the summary of the affected households and populations.

26 Table 2-8: Summary of Affected Households and Populations (unit: No.) Residential Ground Total AHs and Permanent Land Temporary Land Administrative Jurisdiction Structure Attachments APs by Different Acquisition Occupation Demolishment Demolishment Impacts

Resident AHs APs AHs APs AHs APs AHs APs AHs APs City District 1 1 Committee (no.) (no.) (no.) (no.) (no.) (no.) (no.) (no.) (no.) (no.)

Qinzhou 35 141 Qinzhou Jingu 370 1,634 52 238 52 216 423 1,861 Port TOTAL 370 1,634 52 238 52 216 35 141 423 1,861 Note: Of the 35 AHs to be affected by shrimp ponds demolishment, 25 HHs are affected by shrimp pond demolishment and will also be affected by permanent land acquisition, and 10 HHs will only be affected by shrimp pond demolishment including 8 AHs from other places outside of Jingu RC.

27 2.3.2.6 Impacts on Vulnerable Groups

36. Of the total affected households by the Project construction, 167 households (39.48% of the total 423 households) or 739 persons are classified as vulnerable families. Adequate assistance will be provided to them by the local government and IA. The type and quantity of vulnerable groups is presented in Table 2-9.

Table 2-9: Type and Quantity of Affected Vulnerable Groups Jingu Resident Committee Vulnerable Groups Type AHs APs “Five Guarantees” Family 1 13 37 Household Living Under the Minimum 2 59 262 Living Security Line Families with Disabled 7 33 Female-headed Households 3 15 51 Extremely Poor Family4 73 356

Total 167 739 Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/promises; and, 2 Households living under MLG are classified as the poor households. 3 Families with the labour force mainly on female. 4 The people excluded in the safeguard object of system of safeguard lowest life, but because of illness or accident caused temporary difficulties, they cannot maintain daily life, for the relief mostly the issue of interim relief, and the amount is different by region.

2.3.3 Impact Analysis

2.3.3.1 Land Loss

37. The Project will lose 1,960.83 mu of collective land permanently. Within ROW, partial collective land of 1 Resident Committee will be acquired, and 19.05% of RC collective land and 47.09% of RC collective farmland will be lost. In total, the affected households have 8,103.79 mu of land, of which 1,960.83 mu of land will be acquired by the Project, thus the land loss proportion is 24.2% and farmland loss is 59.78% of the affected households, which is serious. However, for the total family income averaged at CNY 21,640 per year with 20% share (or CNY 4,328) of income from agricultural farming, it is calculated that the income loss from their land is average at 11.98% of their total family income or CNY 2,590 per household per year, thus we could see that agricultural income has less share of the family income of the affected households. The livelihood restoration program will be sufficient to restore their losses and their living standards will be improved. Table 2-10 and Table 2-11 provides the impact analysis of land loss of Jingu Resident Committee.

Table 2-10: Land Loss Analysis of Permanent Land Acquisition for Jingu RC Ratio of Land Before Land Acquisition Land Use by the Project Loss Remaining Total Total RC Total Total Of which Of which Total Farm Farmland Land AHs APs Land HHs APs Farmland Farmland Area land (mu) Area (No.) (No.) Area (No.) (No.) (mu) (mu) (%) area (%) (mu) (mu) 10,29 19.05 47.09 Jingu 470 2,269 1,234 370 1,634 1,960.83 581.05 652.95 4 % % 19.05 Total 470 2,269 10,294 1,234 370 1,634 1,960.83 581.05 47.09% 652.95 %

28

Table 2-11: Land Loss Impact Analysis on Households Jingu Residents No. Items Committee I Impacts 1 Affected Households by LA (No.) 370 2 Affected Rural Population by LA (No.) 1,634 4 Land Acquisition (mu) 1,960.83 5 Total Farmland of Affected Households (mu) 972.00 6 Total farmland to be acquired by Project (mu) 581.05 7 Per capita farmland (mu) before LA 0.59 8 Per capita farmland (mu) after LA 0.24 9 Percentage of land loss for AHs (%) 24.20% 10 Percentage of farmland loss for AHs (%) 59.78% 11 Percentage of Income loss for AHs (%) 11.96% II Income Sources of AHs 12 Agriculture (CNY) 4,328.00 - (%) 20.00% 13 Total Household Average Annual Disposable Income 21,640.00 III Land Loss % by Households 14 < 10% 7 15 > 10% - 30% 152 16 > 30% - 50% 129 17 > 50% - 70% 35 18 > 70% - 90% 30 19 > 90%-100% 17 20 100% 0 21 Total 370 IV Land Loss % by APs 22 < 10% 31 23 > 10% -30% 670 24 > 30% - 50% 571 25 > 50%-70% 154 26 > 70% - 90% 131 27 > 90%-100% 77 28 100% 0 Total 1,634

29 III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION

3.1 Socioeconomic Profile of Qinzhou City

38. Qinzhou City is situated in the southern costal area of Guangxi Zhuang Autonomous Region, which is boarded with the northern part of Beibu Gulf, north latitude 21° 35'~ 22° 28' and east longitude 100° 11'~ 109° 9', connecting with Beihai and Yulin cities in east, neighbored with Fangchenggang City in west and boarded with Nanning city in north. It is about 110 km from the urban area to Nanning, 120 km to Beihai and 40 km to Fangchenggang. It is just at the central Beibu Gulf Economic Zone of “Nanning, Beihai, Qinzhou and Fangchenggang”, which has the function of linking west and east, north and south. It serves as the important transport hub connecting southwest Guangxi and the sea. It is the most convenient sea entrance channel of the southwest region.

39. Qinzhou City administers Lingshan County, Pubei County, Qinnan District, Qinbei District, Qinzhou Port Economic Development Zone and Sanniangwan Tourist Management Zone, with the total land area of 10,800 km2. The population is 3.7119 million by the end of 2009. Population density is 344 persons / km2. The urban area includes Qinbei and Qinnan two districts, it sets up Qincheng Management Area and Qinzhou Port Economic Development Zone.

40. By the end of 2009, the population of Qinzhou City reached 3.1719 million with an increase of 1.8% over last year. Of the total population, 420.5 thousand or 11.3% was non-agricultural population. Of the total polulation, males were 2.0327 million accounting for 54.8%, females 1.6792 million accounting for 45.2%. The birth rate was 15.66‰ and the death rate 5.82‰, giving a natural growth rate of 9.84‰. By the end of the year, the registered population was 3.2618 million, the proportion of urban population accounted for 34.04%.

41. In 2009, the GDP totaled CNY 39.637 billion or an increase of 15.3% over last year. It has achieved double-digit growth for six consecutive years. Analysis by sub-industries, the added value of primary industry was CNY 11.545 billion with an increase of 6.0%; the second industry was CNY 14.138 billion, with an increase of 19.2%; the tertiary industry was CNY 13.953 billion with an increase of 18.8%. The primary industry, second industry, tertiary industry accounts for the city's GDP was 29.1:35.7:35.2. Three industries contribute to economic growth rates were 11.0%, 48.8%, 40.2%. To calculate by the registered population, the city's per capita GDP reached CNY 12,212 with an increase of 14.2%.

42. In 2009, the city's net income of farmers was CNY 4,843 per capita, with an increase of 9.0%. Urban residents’ disposable income was CNY 15,768 per capita, with an increase of 11.8%; the consumption expenditure of the residents was CNY 9,379 per capita, with an increase of 16.7%.

3.2 Socioeconomic Profile of the Affected RC and APs

43. This survey was undertaken by the Jingu Resident Committee of Qinzhou Port Economic Development Zone under the supervision of PMO and IA between April and May 2010. 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, structure demolishment and income rehabilitation measures.

30 44. The survey covers all the rural households to be affected by permanent land acquisition and structure demolishment in the affected Resident Committee and AHs. A total of 370 households (100% of households to be affected by permanent land acquisition and 100% of households to be affected by the residential house demolishment) of the total affected households were surveyed. Table 3-1 presents the socioeconomic status of the affected Resident Committee.

Table 3-1: Economic Status of Affected RC Items Jingu Resident Committee Total Households (No.) 470 Total Population (No.) 2,269 Females 1,050 Agricultural Population (No.) 2,244 Non-Agricultural Population (No.) 25 Total Labor Force (No.) 1,493 Industry 393 Agriculture 1,069 Service Industry 31 Total Area of Land (mu) 10,294 Total Farmland 1,234 Paddy Land 1,234 Woodland 8,560 Fish pond 500 Gross Income (CNY 10,000) 870.3883 Agriculture (CNY 10,000) 270.0000 Industry (CNY 10,000) 450.3880 Service & Tertiary Industry (CNY 150.0000 10,000)

3.2.1 Demographic Features of APs

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

46. Although the affected village has been changed into resident committee, but the total surveyed household populations, all households and populations are still rural, including 46.27% are women. The family size is 4.4 persons. Of the total affected rural population, labor force accounting for 65.83% of the total population. The ages of the surveyed population showed that the population is approximately distributed in normal situation, between 51-60 years old accounting for 25% of the total sampled population; the majority of the population between 36-50 years old who represent the major workforce and account for 20% of total sampled population, and between 60-70 years old accounting for 20% of the total sampled population.

47. Over half (60.02%) of the household members have received junior middle school education, ranked first; senior high school education ranked second, accounting for 16.98%, primary school education ranked third, 14.99%. Other 5% have received vocational education or college education. Illiterate persons accounted for 3.01%. Of the total surveyed respondents, 13.65% are those who are over 60 years old or less than 6 years old.

31 48. The employment is characterized by 2% of the APs in labor force engaged in tertiary industry, 70% engaged in the agricultural and sideline (such as breeding), 26% engaged in institutions and enterprises. Meanwhile they also use low-peak season during agricultural production period to go out for seasonable labors. Some women and young people also go out for seasonable work, and this become to be the main income resources. Except agricultural production, 50% people are engaged in seasonable labor. Other occupations, such as go to nearby factories or enterprises for seasonable labors accounting for 2%.

Table 3-3: Demographic Features of the Surveyed Populations Male Female Total Item Number % Number % Number % Households: 370 1,000 53.73% 861 46.27% 1,861 100.00 Household Size: 4.4 Age ≤6 Years 58 3.11% 54 2.91% 112 6.02% 7-19 Years 129 6.93% 115 6.18% 244 13.11% 20-35 Years 518 27.84% 360 19.34% 878 47.18% 36-50 Years 168 19.02% 208 11.18% 376 20.20% 51-60 Years 57 3.07% 52 2.79% 109 5.86% 61-70 Years 45 2.41% 47 2.53% 92 4.94% ≥71 25 1.35% 25 1.34% 50 2.69% Total 1,000 53.73% 861 46.27% 1,861 100.00% Composition Kids (< 7 years old) 61 3.27% 58 3.12% 119 6.39% Students 226 12.14% 195 10.48% 421 22.62% Labor Force 658 35.36% 567 30.47% 1,225 65.83% Retired* 55 2.96% 41 2.20% 96 5.16% Total 1,000 53.73% 861 46.27% 1,861 100.00% Education Illiterate 31 1.67% 25 1.34% 56 3.01% Primary school 145 7.78% 134 7.21% 279 14.99% Middle school 611 32.83% 506 27.19% 1,117 60.02% High school 164 8.81% 152 8.17% 316 16.98% Vocational School 45 2.42% 41 2.20% 86 4.62% College 0 0.00% 0 0.00% 0 0.00% University or Above 4 0.22% 3 0.16% 7 0.38% Total 1,000 53.73% 861 46.27% 1,861 100.00% Occupation Agricultural and Sideline 422 34.45% 435 35.51% 857 69.96% Tertiary Industry 13 1.06% 12 0.98% 25 2.04% Institutions and Enterprises 231 18.86% 87 7.10% 318 25.96% Seasonable Labor in Nearby 19 1.55% 6 0.49% 25 2.04% Factories and Enterprises Total 658 53.71% 567 46.29% 1,225 100.00% Note: The retired person means female ≥55 years, male≥60 years. Data sources: Socioeconomic survey between April and May, 2010.

3.2.2 Residential Houses

49. All structure within the scope of the Project ROW will be demolished. According to the survey, it indicates that the average area of structures is 307.2 m2. The maximum area of structures is 580 m2. Table 3-4 is the area of structures to be

32 demolished.

Table3-4: Area of Residential Structure Demolishment (N=54 HHs) unit: m2/AH Structures Min. Max. Average No. of Rooms 5 18 7.5 Area of Structures (m2) 150 580 307.2

50. The affected structures mostly include brick-concrete, brick-tile and mud houses, of which 46.17% are brick-concrete, 42.92% are brick-tile, and the rest 10.91% is mud house.

3.2.3 Land Use

51. The affected Jingu resident committee has a total of 1,234 mu farmland, 470 households or 2,269 persons. The average farmland per households is 2.63 mu, with average farmland of 0.54 mu per capita. The land use in the resident committee mainly includes paddy land, wood land, and fish pond. The major agricultural crops are paddy rice. As a result of land acquisition, the affected resident committee will lose 19.05% of their land, including 47.09% of collective farmland. The affected households will lose 24.2% of their land and 59.78% of their farmland.

3.2.4 Financial Situation of Households

52. According to the statistical data of the surveyed households, the average annual income is CNY 21,640 per household or 4,918 per capita, of which 50% are from seasonable labor, 20% from agricultural and sideline, and 10% from fixed salary, and 6% from government subsidy, 14% from house rental, business and other incomes. Of the total household income, 55% are contributed by males and 45% by females. Table 3-5 provides the details of the average income of the affected households by gender.

Table 3-5: Average Income of the Affected Households by Gender Average Annual Income of Households Source of Income of Total Income of Income % % Female % (CNY) Male (CNY) (CNY) Seasonable 50.00% 30.99% 19.01% 10,820.00 6,706.24 4,113.76 Labor Fixed Salary 2,164.00 10.00% 1,291.91 5.97% 872.09 4.03% Sales of Agricultural & 4,328.00 20.00% 1,742.02 8.05% 2,585.98 11.95% Sideline Products Government 6.00% 2.69% 3.31% 1,298.40 582.12 716.28 Subsidy Business and 1,947.60 14.00% 1,579.72 7.30% 367.88 6.70% Others Total 21,640.00 100.00% 11,902.00 55.00% 7,938.00 45.00%

53. The results of the survey show that the average annual expenditure per capita is CNY 3,580, CNY 2,117 for food, accounted for 59.13% of the total expenditure, CNY 435 for clothes, accounted for 12.16%, CNY 281 for water and electricity, accounted for 7.85%, CNY 134 for telecommunication, accounted for 3.75%, CNY 200 for gifts, accounted for 5.6%, CNY 175 for transportation, accounted

33 for 4.89%, CNY 80 for medical care, accounted for 2.23%, CNY 56 for education, accounted for 1.57%. See Table 3-6 for the details of average household expenditure.

Table 3-6: Average Annual Expenditure of the Affected Households (N=370 AHs) Average Average Annual Annual % of Total Expenditure Expenditure Per Expenditure Expenditure Capita (CNY) Per Family (CNY) Food 2,116.85 9,314.16 59.13% Water & Electricity Cost 281.03 1,236.53 7.85% Clothes 435.33 1,915.44 12.16% Transportation 175.06 770.27 4.89% Telecommunication 134.25 590.70 3.75% Education 56.21 247.31 1.57% Medical Care 79.83 351.27 2.23% Cosmetics and 255.18 58.00 1.62% entertainment Gifts 200.48 882.11 5.60% Tax 26.13 114.99 0.73% Others 16.83 74.03 0.47% Average Annual 3,580.00 15,752.00 100.00% Household Expenditure

3.2.5 Vulnerable Groups

54. The vulnerable groups were identified based on field survey. The vulnerable group includes “Five Guarantees” households, households living under MLG, households with disabilities, and female-headed households. There are 167 (39.48%) or 739 persons (39.71%) vulnerable households. Details for status quo of affected vulnerable group are showed in Table 2-9.

55. Of the total 167 affected vulnerable households, 13 households enjoying five guarantees (Households Given / with / Receiving / Enjoying Five Assurances / Promises) who are long-term sick without labor force and income source, and family member to support them or disabled, and they live on the subsidy of the government. Of the total 167 affected households, all households will be affected by permanent land acquisition, including 2 households to be affected by house demolition. Although they do not engage in any economic activities, including physically participate in farming activities, they will lose average 1.89 mu of land and 0.35 mu of farmland per household with associated income loss of CNY 288 per year or CNY 24 per month from renting land to tenants. Thus land acquisition activities cause minor losses to their livelihoods and income, but they will get cash compensation at CNY 24,290 to compensate their farmland loss which could be deposited in banks for interest earnings at CNY 850 per year meanwhile they still enjoy the same subsidy provided by the Qinzhou Municipal Government (QMG). Therefore, they could benefit from the land acquisition. During the resettlement process, Qinzhou Municipal Government and IA will provide them priority to allocate the house location and floors or provide the necessary assistance to them during the resettlement process.

56. For the 7 households with the disabled, they will get compensation for land acquisition and they will still enjoy the treatment for disabled persons. The Qinzhou Municipal Government and Resident Committee will give them more care and

34 assistance for structure demolishment, training and employment.

57. For the 59 households living under MLG, they will be provided with MLG fund at CNY 250/capita/month by the civil affairs bureau. The implementing agencies will also give them additional care and preferential policies, to provide them with training and employment opportunities. Qinzhou Municipal Government could also assist them to get access to small credit from banks or provide the necessary assistance to them during the resettlement process.

58. For the 15 female-headed rural families, they are engaged in seasonable labor, small business, agriculture and animal breeding. Their monthly net income from economic activities ranges from CNY 500/capita to CNY 1,200 / capita. After land acquisition, they will loss 0.79 mu/household of land and associated income from land related activities at about CNY 1,300/capita per year. In addition, the IA will provide with training and employment opportunities, and Qinzhou Municipal Government will provide them necessary supports during resettlement process and also assist them to get access to small credit from banks. Their future livelihood and income will be ensured and improved.

59. For the 73 families under extremely difficulties, they are mainly engaged in seasonable labor, agriculture and breeding. As illness or accident caused temporary difficulties, they cannot maintain daily life, but they are excluded in the safeguard object of system of safeguard lowest life. Their current monthly net income from economic activities ranges from CNY 2,500 / capita to CNY 3,000 / capita. After land acquisition, they will loss average 1.55 mu of their farmland per household with associated income loss average at about CNY 2,550/household per year. After land acquisition, they have remaining 1.08 mu of farmland per household. They will receive compensation averaged at about CNY 51,790 per household for their farmland loss (excluding compensation payment for non-farmland loss). They could use the compensation payment for the business development if grocery store, food catering service, hairdressing salon, transportation service, and clothing shop at their choice. In addition, Qinzhou Municipal Government and IA will provide them training and necessary supports during resettlement process and also assist them to get access to small credit from banks. Their future livelihood and income will be ensured and improved. In addition, the government will provide with temporary relief according to different case of extremely poor families.

3.2.6 Gender Perspectives on Resettlement

60. When asked the surveyed households on the resettlement issues, the majority of the affected households request fair and timely compensation, employment opportunities. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. As they live close to the urban area, they are not willing to engage in agricultural production any more but hope to get the job opportunities to work in institutions and enterprises, or get fully paid cash compensation to develop service industry. The surveyed 370 households would like to use compensation payment to do some businesses or get some skills training, to purchase transportation vehicles and machinery equipments for construction, to buy insurances, work as seasonable labor, or deposit the compensation payment into bank for future use. All of them do not want to engage in agricultural farming any more. Table 3-7 provides the opinions and concerns of the APs for resettlement. All of these concerns raised have been incorporated in the planning and implementation of resettlement program, and relevant mitigation measures should be formulated and implemented.

35 Table 3-7: Opinions and Concerns of the APs on Resettlement Item % of Males % of Females % of Total Fair Compensation 90 98 94.00% Availability of Replacement Houses 60 70 65.00% Timely Compensation 100 100 100.00% Employment 75 65 70.00% Obtaining Reconstruction Land 20 30 25.00% All Cash Compensation 100 100 100.00% Future Employment 70 80 75.00% Children’s Education 85 90 87.50% Assistance during Resettlement 70 100 85.00% Loss of Family Social Network 2 3 2.50% Others (Government’s Assistance) 50 60 55.00%

61. Of the total affected population, 861 persons or 46.27% are females, including 567 women are in labor force. As more men move out of the villages for seasonable labor, there is increasing proportion of women engaging in agricultural and household activities than their male counterparts. As a result, the income made by women from farming and sideline activities is 1.06% higher than males. Thus, the impact of land loss will be slightly higher for women than men. However, the land acquisition also provides opportunities for women to be engaged in non-agricultural activities which are more suitable for them, such as food catering services, hairdressing salon, clothing store, grocery store. These business/job opportunities will reduce women’s heavy workload from agricultural farming and make them generate higher income from the development of tertiary industry. As a result, women to be affected are willing to give their land for the construction of the Project. To switch from agricultural activities to service industry, it is important that local government and IA ensure proper training provision to women which could help them to gain the necessary skills and knowledge to operate the business or perform the work.

36 IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE

4.1 Public Participation Strategy

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

4.2 Methods and Measures of Public Participation

63. During the preparation of the project FSR, PMO, IA and DI have held various meetings with the relevant organizations and representatives of Residents Committee 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.

64. During the Project implementation phase, PMO, IA and RO will encourage local residents to involve in the land acquisition and livelihood rehabilitation and income restoration process.

4.3 Public Participation during RP Preparation

65. 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 April and May 2010, all levels of relevant organizations responsible for land acquisition and resettlement, Resident Committee, representatives of community residents (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 April to May 2010, the PMO, IA and DI organized many meetings with district leaders, representatives of RC, and APs to publicize the existing national, autonomous region and municipal resettlement policies and ADB’s Safeguard Policy Statement (2009). 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 or replacement resettlement in accordance with the national regulations.

(3) During resettlement planning period from April to May 2010, PMO, IA, DI, and other relevant organizations visited the affected residents of Jingu resident committee, held meetings with participation of the residents 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 the new resettlement site was discussed.

(4) In order to strengthen the project awareness and outreach, PMO, IA and DI conducted questionnaire surveys of the APs in April and May 2010. The

37 survey covered all the households of the resident committee to be affected by land acquisition and residential structure; and the result is reliable and reflects the preferences of the APs.

(5) Consultation workshops on environment and resettlement between April and May, 2010.

66. The results of the consultation indicate that in general, the APs require timely completion of the road construction and construction of resettlement houses, fair and reasonable cash compensation, and the payment should be paid timely. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. As they live close to the urban area, they are not willing to engage in agricultural production any more but hope to get cash compensation from the loss of their land to rehabilitate their livelihood and income, including development of businesses, purchase of vehicles and machinery equipments to take part in the construction of the economic zone, purchase of social insurances. The APs will use cash compensation to purchase houses in the resettlement site. They want to use compensation payment to implement the livelihood and income rehabilitation measures, such as: i) purchase of social insurance; ii) development of self-employed tertiary businesses (i.e. vehicles and machinery equipment rental, clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment, catering and hotel services, and tourism); and 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

67. 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 40% of women have participated in the survey on land acquisition, structure demolishment and inventory indexes. Meanwhile, the local government organized the resettlement consultation meeting (at least 40% participants are women) and some representatives of Qinzhou 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 as well as provision of preferential policies.

4.5 Information Disclosure

4.5.1 Resettlement Information Brochure

68. In order to help the APs gain a good understanding of the land acquisition and resettlement policies and their entitled rights, the IA, Guangxi Qinzhou Linhai Industry Investment Co., Ltd. in association with BESTCCL has prepared a resettlement information brochure (RIB) and a copy of RIB will be distributed to each AP before 15 December, 2010. 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

38 grievance procedure; and (7) implementation schedule. Although the RIB has not been distributed to the APs yet, but the draft RP was distributed in October 2010 plus consultation meetings, individual interviews and focus group discussion to seek their opinion on various aspects of the RP, including compensation rates. The affected persons were satisfied with the compensation rates and the rehabilitation measures proposed. What they expect is to acquire their land as early as possible as they want to get cash compensation for service business development. 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 RC, PMO, IA and RO, QLRB, QHDAO, LRB and HDAO of the Qinzhou Port Economic Development Zone, and court) and various methods (i.e. by visiting, writing letter or telephone).

4.5.2 Distribution of the Resettlement Plan

69. The draft resettlement plan will be distributed to the affected RC in October 2010. The RP to be approved by QMG will be distributed to resident committee by 15 December 2010 to any one wishing to consult the document in the affected Jingu RC. Copies of the RP will be kept in the Project office and affected RC. At the same time, the RP will be posted on the ADB’s website. The RP will be updated based on the detailed measurement survey (DMS) in January 2011 and will be disclosed to the APs and submitted to ADB for review and approval prior to start of land acquisition and resettlement activities and approval of civil works contract awards. After ADB approval, the updated RP will also be posted on ADB’s website for disclosure.

4.6 Public Participation Plan during RP Implementation

70. 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, and Table 4-2 the outcome of the consultation process.

Table 4-1: Public Consultation Plan and Process Purpose of Form of Implementing Target Timing Remarks Event Event Agencies Participants 1. Provide Community April PMO, IA, DI, Port All APs Meetings held briefings to meetings 2010 – District affected by with APs in the APs on and focus May 2010 Government, and LAR of the RC Project & RP. group RC Project Solicit discussion comments from APs. 2. Disclosure Public & Decembe PMO, IA, Port All APs Distribution of of RIB community r, 2010 District affected by RIB to all APs to meetings Government, LAR of the discuss and focus QLRB, QHDAO, Project concerns and group and RC suggestions on discussions LAR programmes

39 Purpose of Form of Implementing Target Timing Remarks Event Event Agencies Participants Undertook discussions with various focus groups to solicit comments & suggestions 3. Conduct Site January, PMO, IA, DI, Port All APs Inventory survey Final investigatio 2011 District affected by of all assets and Detailed ns and Government, LAR of the land holdings Measuremen household QLRB, QHDAO, Project t Survey interviews and RC Collection of (DMS) socioeconomic data 4. Present Public & October, PMO, IA, Port All APs Distribution of Draft Final community 2010 District affected by the draft RP to RP to APs meetings Government, and LAR of the APs to discuss and focus RC Project concerns & gaps group relating to LAR discussion programs

Undertake discussions with various focus groups to solicit comments & suggestions 5. Prepare Public & January, PMO, IA, and Stakeholders, Meetings to be and Disclose community 2011 Port District beneficiaries, held with Detailed meetings Government, and and APs beneficiary Design and and focus RC population, and Updated RP to group with APs APs Prior to discussion Submission to ADB for Approval 6. Advise APs Public January, PMO, IA, and RO All APs Household of meetings 2011 affected by meetings to Entitlements LAR of the outline and Dates of Project entitlements Disbursement 7. Monitoring Household Feb 2011 – PMO, IA, Port Random Provide of APs, interviews Mar 2014 District samples recommendations beneficiaries Government, and update RP QLRB, QHDAO, RC, and Monitoring plan independent monitoring agency Note: QHDAO = Qinzhou House Demolishment Administration Office; QLRB = Qinzhou Land Resources Bureau; RO = Resettlement Office; RC = Resident Committee.

40 Table 4-2: Outcome of the Public Consultation Process No. of Key Issues Location Time Means Partici Raised by the Discussed pants APs Jingu RC April-May, Resettlement 370 Project description, Highly support the 2010 survey LAR impacts, and Project measures to construction, minimize the LAR scope of LAR impacts. impacts, LAR timing, fair and timely compensation, resettlement within the same RC. Qinzhou 12-13 July, Consultation 50 Compensation Agreement with Port 2010 meeting standards, the compensation Economic entitlements, rates and Developme relocation scheme, rehabilitation nt Zone income rehabilitation measures, Administrati measures. assistance by the on Office local government for the tertiary industry development, priority given to the APs for employment, and provision of training. Jingu RC 11 Oct., Focus group 60 Major components of Timely 2010 discussion the RP, including the compensation LAR impacts, laws, disbursement, regulations and assistance of the compensation, local government entitlement, for the APs to resettlement plan and develop tertiary livelihood and income industry, well restoration plan, established grievance grievance procedures, procedures. schedule, etc. Total 480

71. 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.

41 V. APPEALS AND GRIEVANCE PROCEDURES

72. 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 resident 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: 73. 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 resident committee in oral or in written form. If an oral appeal is made, the community will record it on paper and process it. Resident committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2: 74. 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: 75. If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Qinzhou Project Management Office (QPMO) or Qinzhou Land Resources Bureau (QLRB) or QHDAO after receiving the decision. The Qinzhou City PMO or QLRB or QHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4: 76. If the aggrieved AP is still unsatisfied with the decision of the QPMO or QLRB or QHDAO, he/she will appeal to the GZAR LRB or HDAO after receiving the decision. The GZAR LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 5: 77. If the AP is still dissatisfied with the decision of the GZAR LRB or HDAO, he/she will appeal to the civil division of a people’s court according to the civil procedural law within 2 weeks after receiving the decision from GZAR LRB or HDAO. The AP will be informed of the result via written notice.

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

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

42 VI. LEGAL FRAMEWORK AND POLICIES

6.1 Applicable LAR Laws, Regulations and Policies

80. 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 GZAR regulations and local bylaws and policies, and also include comments and suggestions from APs, and meanwhile meet the requirements of ADB’s Safeguard Policy Statement (2009). 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.

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

 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;  Land Administration Law of the PRC, amended in 2004;  Implementation Regulation for Land Administration Law of PRC; December 1998;  Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93];  Temporary Regulations on Farmland Acquisition Tax of PRC, 2008;  GZAR “Land Administration Law”, 2001;  Management Law of Urban Real Estate of PRC, 1994;  Guidelines for Valuation on Urban House Demolishment of PRC; 2004;  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;  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;  Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52];  Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) No. 88 59];  Unified Standard of Annual Output Value Document issued by the People's Government of Qinzhou City, 27th January, 2010;  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.  ADB’s Safeguard Policy Statement, June 2009;  ADB’s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010).

6.2 ADB’s Involuntary Resettlement Policies

82. ADB’s Safeguard Policy Statement (2009) and Resettlement Operations

43 Manual (OM Section F1) 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) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for

44 loss of nonland assets. viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

6.3 Related Laws and Regulation of PRC

83. 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

84. 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.

45 85. 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 labor 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

86. 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. 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.

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

88. 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.

89. 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.

90. 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.

91. 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.

92. If land ccompensation and resettlement subsidies paid in accordance with the

46 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

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

94. 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 that exceed the approved period3.

95. 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.

96. 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.

97. 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.

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

99. 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.

100. Article 32: The house demolition agency is not allowed to extend the transitional period at their choice. The user of transitional house shall vacate on time. If the house demotion agency extends the transitional period due to their reasons, temporary resettlement subsidy should be added and paid to the resettlers or house tenants from the first date started the extension; for the users of transitional house, the temporary resettlement subsidy should be paid to the persons from the first date started the extension.

101. 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

3 It means beyond the expiry date certification.

47 102. 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.

103. 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.

104. 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.

105. 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.

106. 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.

107. 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

48 land reclamation.

108. 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

109. 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.

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

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

112. For demolition of rental houses, the demolition unit shall reach agreement with the affected people and the tenants on demolition compensation and resettlement.

113. 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.

114. 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.

115. 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.

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

117. House demolition administration department should establish financial

49 regulatory system to enhance financial supervision on the relocation compensation.

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

119. 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.

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

121. 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.

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

123. 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.

124. 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.

125. 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.

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

127. Article 39: House Demolition Agency shall entrust the real estate assessment institution to evaluate the value of the houses and to confirm the cash compensation.

128. If the owner of the demolished house has objections to the resettlement and compensation programs, an agreement could be signed between the house demolition agency and the owner of the demolished house to entrust a legal real estate institution to conduct the assessment and evaluation of the house value. Assessment costs should be shared by both parties.

129. If the resettlers still have objections on the evaluation result, s/he can appeal

50 to the expert panel of the house demolishment administration office within 15 days from the date receiving the evaluation report. The formation of the evaluation committee, evaluation method and responsibilities for assessment cost could be regulated by the GZAR authority.

130. If the owner of the demolished house has not received the evaluation report within 15 days of application, s/he could use the evaluation result as the evidence for compensation and appeal. For the person who has made application for evaluation, she/he could use the evaluation result as evidence for compensation and appeal.

131. 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

132. 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.

51 Table 6-1: Gaps between ADB and PRC Policies PRC Laws and Regulation ADB SPS 2009 Gaps, if any Gap Filling Strategy The People’s Governments at the Improve, or at least restore, the There are no gaps, however the The local Government and IA county level and above should livelihoods of all displaced standards and regulations for the have complied with ADB’s SPS ensure that land compensation persons through (i) land-based PRC laws and regulation related policy to draw the participation of fees, resettlement subsidies and resettlement to resettlement compensation is the APs and relevant stakeholders compensation for ground strategies when affected top-down decision making in the Project design and the RP attachments and standing crops livelihoods are land based where process, while ADB emphasizes preparation phase, including the shall be provided in accordance to possible or cash compensation at compensation should be based on determination and negotiation of applicable laws and regulation in replacement public consultation which is compensation standards as well full and in time. If the land value for land when the loss of community-based (bottom-up) as formation of income and compensation fees and land does not undermine decision making process. livelihood rehabilitation program. resettlement subsidies as livelihoods, (ii) prompt The local Government and IA will stipulated by law still cannot be replacement of assets with comply with the transparent, able to maintain the original access to assets of equal or higher consistent and equitable standards of the land-losing value, (iii) prompt compensation at procedures during the LAR farmers and are not adequate to full replacement cost for assets implementation phase. cover the social insurance costs that of the landless farmers, the cannot be restored, and (iv) provincial government shall additional revenues and services approve an increase in the through benefit sharing schemes resettlement subsidies. If the sum where possible. 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.

52 PRC Laws and Regulation ADB SPS 2009 Gaps, if any Gap Filling Strategy PRC laws and regulations clearly ADB's SPS policy requires to According to the existing Chinese For the Project, the local stipulate that there is no ensure that displaced persons laws and regulations, no Government and IA will protect compensation for demolishing without titles to land or any compensation will be paid to the and compensate all affected illegal building and temporary recognizable legal rights to land expropriation of violated, illegal people regardless of whether they buildings that exceed the are eligible for resettlement buildings and the land without have property certificates, approved period, which means assistance and compensation for property certificate. However, housing tenure, land use rights or beyond the expiry date loss of nonland assets. In rural according to ADB’s SPS policy, lease rights in according to ADB’s certification. areas provide them with legal and these APs are eligible for policy. However, any recognized affordable access to land and resettlement assistance and illegally land developed or resources, and in urban areas compensation for loss of nonland temporary buildings constructed provide them with appropriate assets and rehabilitation after the cut-off date cannot be income sources and legal and measures. compensated. affordable access to adequate housing. No provision of laws and ADB policy requires paying Chinese laws and regulations The issues of vulnerable groups regulations for the vulnerable particular attention to the needs of require giving all APs the same and gender equity have been groups. vulnerable groups, especially treatment without special incorporated in the LAR planning those below the poverty line, the consideration to vulnerable by the local Government and IA. It landless, the elderly, women and groups. ADB’s SPS policy will be continuously integrated in children, and Indigenous Peoples, requires particular attention LAR implementation through the and those without legal title to should be paid to the needs of provision of a preferential policy to land, and ensuring their vulnerable groups, including vulnerable groups in such things participation in consultations. women. as compensation, MLG, employment, training without charge, provision of social safeguard program, provision of micro-credit by the local credit union or local banks with assistance of the local Government, and assistance in selection and allocation of new

53 PRC Laws and Regulation ADB SPS 2009 Gaps, if any Gap Filling Strategy house and relocation. Consultation service is provided in According to the requirement of In the Land Administration Law of To meet the requirements of the Land Administration Law of ADB for the RP preparation, the PRC, it provides the consultation public consultation and PRC. APs should be fully informed and service, but no concrete and transparency, the local closely consulted through specific clauses and procedures Government and IA have meaningful consultations with are provided. During actual complied with ADB’s policy to affected persons, host practice, usually there is no conduct extensive consultations communities, and concerned consultation and no information with the APs and various nongovernment organizations; disclosure until the approval of RP stakeholders, and inform them the informing all displaced persons of due to the facts that formal land impacts, compensation, their entitlements and acquisition and location are not entitlements and resettlement resettlement options; and finalized during the RP schemes, grievance procedures ensuring their participation in preparation stage and the land and so on during the LAR planning, implementation, and user is unwilling to inform the APs. planning phase. The local monitoring and evaluation of However, according to ADB’s SPS Government and IA will resettlement programs. policy, it requires that the APs continuously ensure the should be fully informed and participation of the APs in the LAR closely consulted through implementation phase. meaningful consultations with affected persons, host communities, and concerned nongovernment organizations; informing all displaced persons of their entitlements and resettlement options; and ensuring their participation in planning, implementation, and monitoring and evaluation of resettlement programs.

54 6.5 Compensation Criteria and Principles

6.5.1 Entitlement

133. The Project affected persons (APs)/displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected area. All landowners and users and occupants of structures 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 who are there before the cut-off date determined by Qinzhou 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 structures built after the cut-off date determined by the local government will not be compensated.

6.5.2 Compensation Principles

134. The principle of the compensation and entitlements established for the Project are to: Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible; Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

6.5.3 Compensation Rate

6.5.3.1 Permanent Land Acquisition

135. According to Unified Standard of Annual Output Value Document issued by the People's Government of Qinzhou, the compensation standards are 20 times of multiplier for land compensation, resettlement subsidy and standing crops and all of them will be paid to the affected households. The compensation rate for collective land (calculated based on 20 times of multiplier) is equivalent to the replacement value and also acceptable to the affected households. The compensation rates are consistent with the Guangxi Regional Government Decree in 2009 (see Table 6-2). As the APs do not want to engage in agricultural farming any more, thus, they are willing to give their land for the Project construction and get cash compensation to be used for the development of tertiary industry.

Table 6-2: Compensation Rate of Collective Land Unit: CNY / mu Items Unit Unit Price (CNY) Paddy Land mu 35,000 Dry Land mu 32,000 Vegetable Land mu 32,000 Orchard Land mu 32,000

55 Items Unit Unit Price (CNY) Fish Pond mu 35,000 Woodland mu 32,000 Grassland mu 32,000 House Plot Land mu 650,000

6.5.3.2 Temporary Land Occupation

136. The compensation for the standing crops loss of temporary land occupation of the Project is based on the calculation of the average annual output value of last three years, which will be paid to the APs. The land recovery fee will to be paid to the contractors to restore the land to its original condition and keep the same quality as before. The compensation standards are presented in Table 6-3. It should be noted that due to complex of geological conditions to rehabilitate the land into its original condition, the compensation rates for land recovery are higher than usual rates. As the pipeline construction will be carried out section by section, thus temporary land occupation will be taken from one month to three months. The compensation rates to be paid to the farmers cover one year crop loss, which is sufficient to the APs. The land recovery cost is excluded in the RP, but included in the engineering cost of the Project.

Table 6-3: Temporary Land Occupation Compensation Standard Compensation Standard (CNY) Land Standing Temporary Land Recovery Fee No. Unit Crops to Be Occupation Total to Be Paid to Paid to the the APs Contractors 1 Paddy Land mu 35,000 1,798 33,202 2 Dry Land mu 32,000 1,393 30,607 3 Vegetable Land mu 32,000 4,699 27,301 4 Fish Pond mu 35,000 5,055 29,945 5 Woodland mu 32,000 4,395 27,605 6 Wasteland mu 32,000 32,000 7 House Plot Land mu 650,000 650,000 Note: The standing crops compensation will be paid to AHs and land recovery fee will be paid to the contractors.

6.5.3.2 Demolishment of Residential Structures

137. For the lost residential house structures, the compensation rates are presented in Table 6-4. All the compensation rates for the structures will be based on replacement value and will be determined based on the Evaluation Center’s response based on the evaluation by the qualified real estate evaluation company. The compensation for residential houses will be paid to the APs. Relocation allowance will be provided to the APs at the rate of CNY 8/m2, the temporary transit allowance will be provided to the APs at the rate of CNY 8/m2 for a maximum of 12 months. The compensation for lost of working days due to relocation is CNY 300 per household. If the affected households sign the agreement on time, each household will receive CNY 5,000 as award for timely agreement signing. As the APs will not move until their new houses are built, and the relocation will only take about 2 or 3 days, the relocation allowance should be sufficient.

56

Table 6-4: Compensation Rates of Residential House Demolition Unit Compensation Standard (CNY) Private Residential Structure Brick-Concrete m2 1,250 Brick-Tile m2 850 Mud Houses m2 500

6.5.3.3 Ground Attachments

138. All affected auxiliaries, basic infrastructures and special facilities will be compensated at replacement rate to reflect the current value. Table 6-5 provides the compensation standards of the ground attachments.

Table 6-5: Compensation Standards of Ground Attachments Items Unit Compensation (CNY) Auxiliaries Drinking Well No. 5,000 Animal Pen m2 150 Fence Wall m 200 Toilet No. 1,500 Tomb No. 3,000 Fruit Tree mu 32,000 Sunning Ground m2 80 Shrimp Pond mu 35,000 Basic Infrastructures and Special Facilities Electricity Pole No. 2,000 Low-voltage Power Lines m 1,200 220v Power Lines km 15,000 Telecommunications Wires m 200 100 pairs of Overhead km 23,000 Telecommunications Wires 12 Core Overhead Cable Wires km 2,000

6.5.3.5 Special Policy for Vulnerable Group

139. The needs and interests of vulnerable groups, special attention will be given to them, particularly the potential difficulties faced by vulnerable people in affected areas in resettlement planning and implementation. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, house selection, social security plan, special fund and MLG. Assistances on training with free charge, employment, and micro-credit will be provided to them by the QMG, 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 the house, floor and type of houses, and the QMG and IA will also provide assistance on the relocation.

57

VII. ENTITLEMENT MATRIX

140. 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. The cut-off date will be determined by FMG in collaboration with relevant organizations involved, including PMO, IA, QLRB, QHDAO, and district government. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. QMG, IA, FLRB and FHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. QMG will publicize the cut-off date on newspaper of “Qinzhou Daily” and village bulletin board once the date is decided. The cut-off date will usually be upon the completion of DMS. The compensation will be made in the forms of “cash” for land loss, and “cash” for structure compensation for the relocated families to purchase new houses at resettlement site. The relocated households will get relocation allowance and temporary transit allowance. The compensation will be in cash. Table 7-1 presents the entitlement matrix. As no farmland will be re-allocated, the compensation for the collective land loss will be paid to the affected households directly.

58 Table 7-1: Entitlement Matrix Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible Permanent land Collective-Owned Land: “Cash” will be provided to all APs Compensation rates of land loss to PMO, GQLIICL, acquisition 1,960.83 mu collective-owned affected by permanent land the rural APs: 20 times multiplier of QMG, QLRB, RC (370 rural land will be acquired acquisition of paddy land, orchard AAOV at CNY 35,000 / mu for paddy and RO households and permanently for the Project, land, vegetable land, dryland, fish land, CNY 32,000 / mu for dry land, 1,634 rural including 273.79 mu paddy pond, and house plot land. The CNY 32,000 / mu for vegetable land, populations) land, 123.93 mu orchard land, compensation rates include the three CNY 32,000 / mu for orchard land, 91.92 mu vegetable land, items of land compensation, CNY 35,000 / mu for fish pond, CNY 215.34 mu dry land, 251.38 mu resettlement subsidy and standing 32,000 / mu for woodland, CNY fish pond, 593.4 mu woodland, crop compensation at market 32,000 / mu for grassland, CNY 368.22 mu grassland, and replacement value and all of them will 650,000 / mu for house plot land. All 42.76 mu house plot land. be paid to the individuals. compensation rates to be paid are at replacement value The following livelihood Cash compensation for the rural rehabilitation measures will also be collective land acquisition of wood provided to all APs including the land and grass land will be paid to the shrimp farmers: i) various affected RC directly to be used for employment and income social insurance program of the land generation opportunities during the losers and improvement of public Project construction and operation infrastructures for the community. phases; ii) development of self-employed tertiary businesses; and iii) provision of technical training to the APs.

The following provisions will be provided to the vulnerable groups to rehabilitate their income: i) MLG fund at CNY 200/month; ii) training without charge will be provided to them to increase the knowledge

59 Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible and skills of the vulnerable groups; iii) provision social safeguard program; iv) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and v) provision of micro-credit to them by the local rural credit union or local banks. The IA and the local government will assist the APs to get access to micro-credit from local banks.

For the provision of social insurance, 30% will be contributed by the local government and 70% contribution from rural collectives and farmers (The land lost farmers pay 20% based on the 40% of the average wage of the urban workers in last year). Temporary Land A total of 91.56 mu of collective Cash compensation will be paid to Compensation standards to the PMO, GQLIICL, Occupation (52 land will be occupied, including the affected people directly for farmers for the loss of standing QLRB, and RO AHs or 238 APs) 12.82 mu paddy land, 4.58 mu standing crop compensation. crops: CNY 1,798 / mu for paddy vegetable land, 10.07 mu dry land; CNY 1,393 / mu for dry land; land, 11.9 mu fish pond, 32.96 Land recovery fees will be paid to the CNY 4,699 / mu for vegetable land; mu woodland, 17.4 mu contractors. CNY 5,055 / mu for fish pond; CNY wasteland, and 1.83 mu house 4,395 / mu for woodland. plot land. Compensation standards of land

60 Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible recovery fee: CNY 33,202 / mu for paddy land; CNY 30,607 / mu for dry land; CNY 27,301 / mu for vegetable land; CNY 29,945 / mu for fish pond; CNY 27,605 / mu for woodland, CNY 32,000 / mu for wasteland, CNY 650,000 / mu for house plot land.

After temporary land use, the land will be restored to original condition and keep the same quality by the contractors. Residential A total of 15,974.58 m2 All APs will be provided with “cash” Compensation for the affected PMO, GQLIICL, structures (52 residential structures will be compensation to purchase new structures at full replacement costs QLRB, QHDAO, households or demolished, including 7,375.9 houses at centralized resettlement of materials and labors with no Qinzhou Port 216 rural m2 brick-concrete, 6,856.46 m2 site. deduction for depreciation or District populations). brick-tile, and 1,742.22 m2 mud salvageable materials. Government, and house. The cut-off date will be determined by RC and RO QMG in collaboration with relevant The compensation standards for organizations involved, including structures are: CNY 1,250/m2 for PMO, IA, QLRB, QHDAO, and district brick-concrete, CNY 850/m2 for government. Illegal land-use, brick-tile, CNY 500/m2 for mud construction of temporary structures house. will not be compensated after the notification of cut-off date. QMG, IA, Relocation allowance will be paid to QLRB and QHDAO could take the AHs in cash at CNY 8/m2 within photos/video of the places on the 12 months and Temporary transit cut-off date to prevent further influx allowance at CNY 8/m2 for a beyond the cut-off date. QMG will maximum of 12 months will be publicize the cut-off date on provided to each affected newspaper of “Qinzhou Daily” and household. The compensation for community bulletin board once the

61 Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible date is decided. lost of working days due to relocation is CNY 300 per Relocation allowance and temporary household. If the affected transit allowance in cash will be households signed an agreement on provided to the APs time, each household will receive CNY 5,000 as award for timely signing the agreement. The IA and local government will assist the APs on the selection and allocation of new houses and relocation.

The following provisions will be provided to the vulnerable groups: i) For the elderly or disabled or women-headed families, priority should be provided to them during the selection of the location of reconstruction house land; and ii) Provide labor and transportation assistance to the vulnerable groups without charge. Ground 6 drinking wells, 396.91 m2 546.62 mu All affected people or Cash compensation will be paid to PMO, GQLIICL, attachments animal pens, 168 m2 of fenced illegally owners will get all affected people or owners: CNY RC, Qinzhou Port walls, 6 toilets, 235 tombs, developed equivalent amount of 5,000 / each for drinking well, CNY District 132.15 mu fruit trees, 1,562 m2 shrimp cash compensation. 150 / m2 for animal pen, CNY 200 / Government, and sunning ground, and 546.62 mu pond (35 m2 for fenced wall, CNY 1,500 / each RO shrimp pond. HHs to be for toilet, CNY 3,000 / each for tomb, affected, CNY 32,000 / mu for fruit tree, CNY 54 electricity poles, 3,290 m including 8 80 / m2 for sunning ground, CNY low-voltage power lines, 18 km HHs from 35,000 / mu for shrimp pond. of 220v power lines, 2,090 m other

62 Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible telecommunication lines, 16 km places For those families who will lose the of 100 pairs of overhead outside of shrimp farming, in addition of cash telecommunication wires, 14 the RC) compensation will be paid to them, 12-core overhead cable wires. the following livelihood rehabilitation measures will also be provided to them: i) various employment and income generation opportunities during the Project construction and operation phases; ii) development of self-employed tertiary businesses; and iii) provision of technical training to the APs.

Cash compensation will be paid to all affected owners: CNY 2,000 / each for electricity pole, CNY 1,200 / m for low-voltage power lines, CNY 15,000 / km for 220v power lines, CNY 200 / m for telecommunication lines, CNY 23,000 / km for 100 pairs of overhead telecommunication wires, CNY 2,000 / km for 12 core overhead cable wires. Note: For the provisions to the vulnerable groups, the budget of training is included in Table 9-1 cost estimates of LAR, and the budget for social safeguard program will come from land compensation. The provision of MLG fund will be from annual budget of Qinzhou Municipal Civil Affairs Office and the micro-credit provision will come from the local rural credit union or local banks which should not be included in the budget of the RP.

63 VIII RESETTLEMENT AND REHABILITATON PLAN

8.1 Objectives and Principles of Resettlement Program

141. 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” for the land loss families, and “cash” to purchase house in centralized resettlement site for relocated families; 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 tertiary businesses (i.e. construction machinery equipment rental, clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment, food catering and hotel services, and tourism); 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’s 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.

8.2 Compensation and Rehabilitation Resettlement Plan

8.2.1 Resettlement Options and Plan

8.2.1.1 Residential houses

142. The Project will relocate 52 households and 216 persons. A total of 15,974.58 m2 structures will be demolished. To maintain the social network of the APs, to keep their original living and work continuity, the compensation will be provided based on the QMG policies and regulations: “cash” will be paid to the relocated families to purchase their new houses in resettlement site, and auxiliaries at replacement value in cash. The APs will be resettled close to their original houses as much as possible.

143. Table 8-1 provides the summary resettlement choices preferred by the affected households. According to the latest field survey, of the total 52 households, 100% or 52 households would like to choose “cash” compensation to purchase new houses in resettlement sites in Jiduntou RC, of which 25 households (48.08%) would like to purchase commercial houses and 27 households (51.92%) would like to purchase economy houses.

64 Table 8-1a: Resettlement Choices of the Affected Households Resettlement Choices of the Affected Persons (No.) Cash Compensation Cash Compensation to Total Purchase of Purchase New Houses Purchase of AHs Commercial in Resettlement Site Economy Houses Houses Total 52 52 25 27 % 100% 100.00% 48.08% 51.92%

144. In order to fully take into account for the wishes of the affected persons, QMG has preliminarily planned the relocated families to be settled in the Jiduntou RC resettlement site. The resettlement site and houses will be planned in a centralized way. The average size of the commodity house include 70-90 m2, 100 m2, 120 m2, 150 m2 and 200 m2, and the average size of the economy houses include 50 m2-90 m2, 100 m2 and 120 m2. The demolishment of residential structures will be compensated in replacement value with average compensation at CNY 322,520 per household for the demolished structures (excluding the compensation for house plot land averaged at CNY 534,500 per household), thus, it is sufficient for the APs to use the compensation payment to buy their new houses. The IA and local government will assist the APs on the selection and allocation of new houses and relocation.

8.2.1.1 Resettlement Plan for Households to Be Relocated

145. In order to fully take into account the wishes of the affected persons, QMG has preliminarily planned the resettlement scheme to relocate the families to be affected by residential structure demolishment to the centralized resettlement site of Jiduntou RC. Jiduntou RC is neighboring with Jingu RC, with roads surrounded around and convenient transportation. The total land area is 4,938.73 mu which has been acquired by the QMG and is state-owned land now. Before the land acquisition, the land includes 3,267.65 mu of hilly land, 523.13 mu slope land, and 1,147.95 mu of slat and Alkaline land owned by the RC, thus when QMG acquired the land, no household or population was affected. The compensation for land acquisition was paid to the Jingu Resident Committee. Within three years (from 2010 to 2012), 3,741.05 mu will be developed, including 755 mu (503,585 m2) to be used for residential house construction. The land use plan of the resettlement community is presented in Table 8-2.

Table 8-2: Land Use Plan of Jiduntou RC Resettlement Community (Phase I) Total Land Planned Area Development Remaining Item Use Area to Be Proportion Area (Mu) (Mu) Developed (Mu) (%) Commercial Land 675.91 22 653.91 3.25% Use Residential Land 805.77 755 50.77 93.70% Use Office 564 71 493 12.58% Public Greening 908.8 908.8 0 100% Space Water Body 775.56 775.56 0 100% Road 620.25 620.25 0 100% Stadium 100.26 100.26 0 100% Hospital 50 50 50 100% Primary & Middle 200 200 0 100%

65 Total Land Planned Area Development Remaining Item Use Area to Be Proportion Area (Mu) (Mu) Developed (Mu) (%) Schools, and Kindergarten High-Voltage 238.18 238.18 0 100% Corridor Total 4,938.73 3,741.05 1,247.68 75.74%

146. Of the total land use, the living space is 308,020 m2, and construction area 362,050 m2 construction area. The housing in the resettlement site includes multi-storey buildings, with a total of 49 buildings, and 141 siamese small houses. The community has activity center, kindergarten, business clusters, community center recreational greening, power distribution house and other facilities. Along the planned urban road, multi-storey buildings are designed, with the first floor served as shops, two to six floors as commercial and residential houses, with a total of 1,317 sets: siamese small houses have A, B, and C three types with three floors and partially four floors. All the entrance of the houses is separated doors, totaling 628 houses. The area of the houses includes 30 m2, 60 m2, 80 m2 and 100 m2, with total capacity to host 4,500 households. The resettlement community will not only to resettle the relocated families to be affected by Qinzhou City Urban Road and Related Infrastructures Component, but also families to be affected by other projects and the local residents and the employees of Qinzhou Port Industrial Park.

147. All the relocated households, 52 households would like to be resettled in the resettlement community of Jiduntou RC, 25 households will purchase commercial houses. Their annual family income is around CNY 32,000. The compensation for houses totals at CNY 9.2199 million, with average compensation rate at CNY 368,795. In addition, each relocated household will get about CNY 534,500 cash compensation for the loss of homestead. As a result, each relocated family will get CNY 903,300 cash compensation in total for the loss of their houses. If the price of commercial houses is CNY 2,300/m2 and they intend to buy houses with 400 m2, each household needs to pay CNY 920,000 at average for the houses. They will use CNY 800,000 compensation money as down payment and take 15 years mortgage loan for remaining cost of CNY 120,000. Thus they need to pay CNY 720 per month as mortgage payment to the banks. It is affordable for them. Therefore they are satisfied with compensation rate. After relocation, the living environment of the APs will be increased significantly. The area of their new houses will be the same size or bigger size than before, with better quality.

148. For the 27 households who would like to purchase economy houses, the current price for economy houses is 1,500/m2. Their annual family income is around CNY 18,500. The compensation rates for brick-tile and mud houses are CNY 850/m2 and CNY 500/m2 respectively, they will get CNY 6.6991 million cash compensation for the loss of their houses, with average compensation rate at CNY 248,100. In addition, each relocated household will get about CNY 534,500 cash compensation for the loss of their homestead. As a result, each relocated family will get CNY 782,600 cash compensation in total for the loss of their houses. If the price of economy houses is CNY 1,500/m2 and they intend to buy houses with 400 m2, each household needs to pay CNY 600,000 at average for the houses. They will use compensation payment of structure demolishment to purchase new houses and fully paid. They will also use the remaining compensation of CNY 182,600 to be used for house interior decoration, furniture purchase, and other purposes. The IA will ensure that the relocated families

66 will not be moved until the new houses are constructed. The above measures will be more meaningful that the information will be presented at the household level based on the DMS between December 2010 and January 2011.

149. Qinzhou Municipal Government will be responsible for the measurement of ground-based reference, road construction, water and power supplies of the resettlement site. The resettlement site will be facilitated with better social services and basic infrastructures, such as hospital, financing services, commercial service, public transportation, schools, entertainment, etc..

150. During the resettlement process of the land acquisition and structure demolishment, 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 will be given to the APs. As for the APs who sign the resettlement and compensation agreement after the publicizing of relocation and have moved out, they will be provided with CNY 5,000 per household as award.

151. For safety reason, the demolition of the structures 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 by the households themselves. The APs can sale the salvageable materials to make some money.

152. In addition, relocation allowance of CNY 8/m2, the temporary transit allowance at CNY 8/m2 for a maximum of 12 months will be provided to each affected household. The compensation for the lost of working days due to relocation is CNY 300 per household. For each relocated family, they will get average CNY 322,524 in total for the average loss of 307.2 m2 residential structures (including relocation allowance, temporary transit allowance, and compensation for the lost of working days). For their moving, it will take about only one to two days, the productive income loss is about CNY 119, plus transportation rental cost at about CNY100/day. Thus, the relocation allowance is sufficient. The APs will not be moved after the new houses are built, the relocation will only take a couple of days, thus the temporary transit allowance is adequate. The APs will benefit from the temporary transit allowance provision if they could move into their new houses timely.

8.2.1.2 Rehabilitation Plan for Affected Households by Land Acquisition

153. A total of 1,960.83 mu of land would be acquired permanently, and affect 1 resident committee, 370 households or 1,634 persons. The proportion of land to be acquired account for 19.05% of the RC’s collective land, and 47.09% of collective farmland; and account for 24.2% of the total land area and 59.78% of total farmland of the affected households. The average farmland loss is 59.78% of the affected households, which is serious. With their total family income averaged at CNY 21,640 per year and 20% share (or CNY 4,328) of income from agricultural farming, it is calculated that the income loss from their land is average at 11.98% of their total family income or CNY 2,590 per household per year, thus we could see that the impacts of land acquisition are severe. However, as the affected area is getting urbanized, the local people are not relying on the land for their livelihood with increasing number of people are engaging in service industry, seasonable labor, and in enterprises. After land acquisition, no allocation of land will be made. All compensation for land loss will be directly paid to the APs to be used for livelihood and income rehabilitation. Compensation will be made in accordance with the relevant laws and regulations. In addition, the local government will follow the regulation of

67 “Temporary Method of Social Insurance for the Farmers Whose Land Acquired in Qinzhou City” to solve the future livelihood of the farmers.

154. In addition, there are 132.15 mu fruit trees and 546.62 mu shrimp pond will be permanently acquired. However, the cultivation on the land has no legal entitlement. In order to have full recovery of the losses, the loss of the illegal land developers will also be compensated in cash as well as enjoy the following livelihood rehabilitation measures: i) provision of various employment and income generation opportunities during the Project construction and operation phases; ii) development of self-employed tertiary businesses; and iii) provision of technical training.

155. 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 applies to all 370 affected families. Due to the construction of the Qinzhou City Urban Road and Related Infrastructures Component, they will lose 24.2% of their land and 59.78% of their farmland.

156. The household survey indicates that 20% of their income comes from agricultural activity and sideline business in Jingu Resident Committee. The associated income loss of the APs is 11.96% of their total family income or CNY 2,590 per household per year; see Table 8-3 for the income loss analysis. The average annual income of affected area is CNY 21,640 / household and CNY 15,820 / vulnerable household. Their income is mainly from seasonal labor, agriculture and sideline business, fixed salary, government subsidy, house rental, business, and others. The APs within the Project area are mainly engaged in tertiary industry, agriculture and sideline business, operating business. Meanwhile they also do seasonal labor work during the agricultural leisure season. Major labor force with the age between 20-50 account for the majority of the APs and all have above junior school education level.

Table 8-3: Income Loss Analysis of AHs Annual Annua Total Income Farmland Farmland HH l HH Total No of Farmland Loss RC Loss Loss Income Incom households before Ratio (mu) Ratio (%) before e Loss LA (mu) (%) LA (CNY) (CNY) Jingu 370 972 581.05 59.78% 21,640.00 2,590 11.96% Total 370 972 581.05 59.78% 21,640.00 2,590 11.96%

157. The land loss will result in the livelihood of a family. Of the total 370 affected households and 1,634 persons to be affected by the permanent land acquisition of the Project (including 27 households or 123 persons to be affected fruit trees also, with 81 persons in labor force), 1,076 persons are in labor force who need income rehabilitation; Of the 35 households or 141 persons (93 persons in labor force) to be affected by the ground attachment demolishment (shrimp pond demolishment), 25 households will also be affected by permanent land acquisition, and 10 households will be affected by shrimp pond only (including 8 households from other places outside the Jingu RC and 26 persons in labor force) Thus, a total of 380 households or 1,102 persons need livelihood and income rehabilitation. According to the result of the surveys and consultation, the APs do not want to engage in agricultural activities any more, and would like QMG provide them with employment and technical training opportunities, and they also would like QMG provide them business support.

68 158. 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 industry, such as construction machinery equipment rental, cloth selling, grocery store, food catering service, hairdressing salon, dry cleaning, motorcycle transportation service in urban districts, taxi service, entertainment service, hotel service, tourism business, and other businesses; iii) provision of social and medical insurance; iv) providing employment opportunities generated by the construction and operation of the project (urban sanitation worker, enterprise employee and maintain security etc.). The urbanization brings new ideas, notion, and better living environment and job opportunities for the local farmers, hence they can start commercial activities.

159. The land compensation, resettlement subsidy and standing crops will be paid directly to the APs at the total amount of CNY 55.54 million (including compensation for the loss of fruit trees and shrimp pond and excluding compensation of the loss of wood land, grass land and homestead), with average at CNY 146,160 per household. The APs could use the compensation payment for other tertiary industry development. As a result, the APs will significantly benefit from the land acquisition. According to the survey conducted among the APs, 100% or 1,102 APs in labor force (including labor force in the shrimp farming) are willing to use the compensation for land loss as seed money to develop the tertiary industries. Women are more suitable for the above-mentioned employment and income generating opportunities. Actually they account for about 45% of the 495 labor force, they will benefit the same from the income rehabilitation program as men. After the affected APs get their compensation payment, they will be engaged in the new businesses in Qinzhou Port Economic Development Zone. During the arrangement of new employment opportunities, QMG pays great attention to the production resettlement of the affected women, especially the establishment of business for “hairdressing salon”, “grocery store”, “food catering service”, “laundry” “transportation”, “handicraft workshop”, “sales of tourism products”, etc. which are very suitable for the employment of women.

160. Based on the socioeconomic survey and discussion/consultation results with the APs, the affected households affected by permanent land acquisition who need livelihood rehabilitation will engage in “construction machinery and equipment rental” (13 households/58 APs), “grocery store” (47 households/ 207 APs), “food catering service” (35 households/ 155 APs), “hairdressing salon” (40 households/ 179 persons), “dry cleaning” (28 households/ 124 APs), “motorcycle transportation service for urban districts” (38 households/ 169 APs), “clothing shop” (46 households/ 204 APs), “hotel services” (39 households/169 APs), and tourism industry and related services (58 households/ 258 persons) to rehabilitate the loss of income from agricultural farming. Since the APs will be receiving a sum of compensation at over CNY 245,264 per household on an average, 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 to six 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 the majority proportion of their compensation payment to invest in their new businesses and the remaining fund will be used for improving their living conditions, deposit into bank for monthly interest, buying social insurance and circulating fund or for education of their children. Table 8-4 provides the income, compensation received and income rehabilitation measures of the affected households. Based on the detailed measurement survey, the following information will be updated and will be represented at the household level. Of the total affected households by permanent land acquisition, 213 households will lose over 25% of their farmland, their remaining farmland totals at 293 mu, with average

69 remaining farmland of 1.38 mu per household. They will get a total of CNY 19.415 million compensation payment for the farmland loss. In addition, they will also get cash compensation for the loss of orchard land, fish pond, homestead, land of fruit trees and shrimp pond at CNY 63.919 million. Thus, in total, they will get CNY 219,300 per household for the compensation of land loss at average. Of the total households affected by the permanent land acquisition including shrimp farming, they have 1,102 persons in labor force. They will take the income rehabilitation measures listed in Table 8-4. Table 8-5 provides the input and output for each scheme which demonstrate that they will benefit from the rehabilitation measures with increased income than before. Based on the detailed measurement survey, the following information will be updated and will be represented at the household level.

Table 8-4: Income, Compensation Received and Rehabilitation Measures of AHs Current Compensation Annual Received for RC Rehabilitation Measures Income Land Loss (CNY) (CNY)* Construction machinery & equipment rental (13 HHs), grocery store (47 HHs), hairdressing salon (40 HHs), food catering service (35 HHs), Jingu RC 21,640 146,160 dry cleaning (28 HHs), transportation service (38 HHs), clothing shop (46 HHs), taxi (36 HHs), hotel service (39 HHs), sales of tourism products and relevant sector (58 HHs) Total 21,640 146,160 Note: *It includes the compensation for the loss of fruit trees and shrimp pond and excluding compensation of the loss of wood land, grass land and homestead.

161. Since the APs will be receiving a sum of compensation at CNY 146,160 per household at an average from compensation for land loss (including legal and illegal land use households). The amount is sufficient for them to start a new business. 162. For the “construction machinery and equipment rental”, the initial investment is about CNY 150,000. CNY 180,000 could be generated as annual rental income at average. With deduction of repair cost ranging from CNY 30,000, and depreciation cost of equipment at 10% or CNY 15,000, it is expected that the net annual income will be CNY 135,000 (equivalent to CNY 11,250 each month). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

163. For the “grocery store””, the initial investment for each business establishment is CNY 90,000, of which CNY 30,000 is used for annual space rental cost and CNY 60,000 for purchase of goods. It is expected that the number of customers will be about 150 persons per day and the average expense is CNY 16.0/day. As a result, the annual gross income is CNY 438,000. With deduction of the total annual expenditure of water and electricity bills at CNY 18,000 (equivalent to CNY 1,500/month), employees’ salary at CNY 28,800 (three employees), various business taxes and other costs at CNY 30,000 and investment at CNY 120,000, it is expected that the annual net income is CNY 212,400 (CNY 17,700 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

164. For the “food catering service” (regular fast food and rice noodle house) employment option, the total initial investment is CNY 90,000, of which CNY 60,000 is used for annual space rental cost (if shop owner, the rental cost will be the investment cost), CNY 18,000 for purchase of equipments, and CNY 12,000 for circulating fund.

70 The estimated number of customers is 240 persons and the average expense of the business is CNY 7.0 per day per customer or CNY 1,680 per day. As a result, the total annual gross income is CNY 306,000. With deduction of the annual total expenditure at CNY 90,000, employees’ salary at CNY 28,800 (three employees), CNY 28,800 as water and electricity charge (CNY 2,400 per month equivalent), CNY 30,000 as various business taxes and other costs (CNY 2,520 per month equivalent), the annual net income will be CNY 129,000 (CNY 10,740 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

165. For the “motorcycle transportation service” option, the total initial investment required is CNY 36,000, of which CNY 27,000 is used for the purchase of motorcycle and CNY 9,000 for the cost of the business charge. The estimated passengers are 90 persons every day. The transportation price is set at CNY 5.00 per person. The total annual gross income will be CNY 164,250. With the deduction of total annual expenditure at CNY 65,700 including CNY 9,000 as annual management charge, employees’ salary at CNY 28,800 (three employees), CNY 54,000 as gasoline consumed, and CNY 2,700 as depreciation of vehicle, the annual net income will be CNY 69,700 (CNY 5,810 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

166. For “retail clothing shop” (middle level) option, the total initial investment is CNY 72,000, including CNY 48,000 as annual space rental cost, CNY 24,000 as purchase of clothing. It is estimated that 60 clothes will be sold everyday. The average gross profit is CNY 12. As a result, the annual gross income is CNY 262,800. With deduction of total investment and other expenditures at CNY 72,000, employees’ annual salary at CNY 28,800 (three employees), and various business taxes and other costs at CNY 18,000, the annual net income is expected at CNY 154,500 (CNY 12.870 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

167. For the “taxi drivers”, the initial investment required is CNY 160,000, of which CNY 150,000 is used for the purchase of car and CNY 10,000 for the cost of business charge. The estimated passengers are 20 persons every day. The transportation price is CNY 480 per day. The total annual income will be CNY CNY 175,200. With deduction of total annual expenditure at CNY 103,100, including 9,000 as annual management charge, one employee’s annual salary at CNY 9,600, CNY 20,000 as gasoline consumed, CNY 12,000 as repair cost, CNY 22,500 as depreciation of vehicle, and various business taxes and other costs at CNY 30,000thus their annual net income will be CNY 72,100 (CNY 6,010 per month). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme. 168. For “hairdressing salon”, the total initial investment is CNY 60,000, including CNY 20,000 as annual space rental cost, CNY 12,000 as purchase of equipments, CNY 20,000 as decoration and 8,000 as circulating fund. It is estimated that 30 customers per day. The average gross profit is CNY 20 for each client. As a result, the annual gross income is CNY 164,250. With deduction of total investment and other expenditures at CNY 108,000, employees’ salary at CNY 19,200 (two employees), water and electricity fee at CNY 14,400 (i.e. CNY 1,750 per month equivalent) and various business taxes and other costs at CNY 16,000 (CNY 1,320 equivalent), the annual net income is expected at CNY 54,650 (CNY 4,560 per month equivalent).

71 169. For “dry cleaning”, the total initial investment is CNY 40,000, including CNY 10,000 as annual space rental cost, CNY 30,000 as purchase of equipments. It is estimated that 17 clients every day, with consumption of CNY20/persons per day. As a result, the annual gross income is CNY 124,100. With deduction of total investment and other expenditures at CNY 40,000, one employee’s salary at CNY 9,600, water and electricity fee at CNY 15,000 (i.e. CNY 1,300 per month equivalent), and various business taxes and other costs at CNY 8,000 (CNY 660 per month), the annual net income is expected at CNY 51,500 (CNY 4,290 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

170. For those who choose to be engaged in sales of tourism products and tourism service in the tourism development zone, their personal investment ranges from CNY 30,000 to CNY 180,000. If the APs engage in regular sales of tourism products or tourism service, the investment is relatively less. However, due to the large floating population in tourism areas of Sanniangwan Beach Area, the profits could be more substantial. If the APs engage in high-class tourism products and services, the invest will be relatively large, but the revenue will also be significant, with bigger risks of course. For the initial stage of the business, the government should guide the APs to be conduct investment analysis to reduce risks.

171. For the above tertiary industry development as livelihood rehabilitation measures, the APs could use the compensation of resettlement subsidy and standing crops as initial investment. As each household could get compensation for land loss families at CNY 245,264 per family at average, it is adequate for them to invest in their new businesses.

172. For those who will choose the technical training free of charge provided by the government or IA, and plan to work in the nearby factories, commercial and retail businesses, super market, housekeeping, and hotels, their monthly salary could reach about CNY 1,500 to CNY 2,000. For higher technical skill, their monthly salary could reach to CNY 2,000 to CNY 3,000, with annual income between CNY 19,200 and CNY 36,000, which is much higher than their original income at CNY 4,860/capita.

173. For the measures the information will be presented at the household level based on the DMS during project implementation. The affected resident committee is located at the edge of the newly built industrial park with led by China Oil, in turn will stimulate many downstream industries to enter in the area. With large number of population flowed in and urbanized, the above service businesses are also in great demand. With proper guidance and assistance by the local Government, it is expected that the APs will successfully establish their businesses.

174. In order to restore their livelihoods and income of the APs, QMG will work with relevant departments, owners of enterprises, Labor and Social Security Bureau, and district government to make the necessary arrangements to ensure that those affected people who could find the jobs in the tertiary industries as presented in Table 8-4.

72 Table 8-4: Engagement of the APs in Tertiary Industries No. of AHs Expected Net Initial Investment Type of Business (APs) to Be Income (CNY) Engaged (CNY/HH/Year) Construction Machinery 13 (58) 150,000—200,000 130,000—300,000 & Equipment Rental Grocery Store 47 (207) 90,000 212,400 Food catering service 35 (155) 90,000 129,000 Hairdressing salon 40 (179) 20,000 54,650 Dry cleaning 28 (124) 40,000 51,500 Transportation service 38 (169) 36,000 69,700 Clothing shop 46 (204) 72,000 154,500 Taxi 36 (160) 160,000 72,100 Hotel Service 39 (169) 120,000 252,000 Sales of Tourism products and relevant 58 (258) 30,000—180,000 120,000—360,000 sector

TOTAL 380 (1,694) 72,000－300,000 300,000－600,000

175. For the people who will lose their land temporarily, standing corps compensation will be paid directly to affected people in cash. The land restoring fee will be paid to the contractors. The land will be restored to original condition and keep the same quality as before by the contractors. The Project construction will generate 2,770 person-years short-term employment opportunities to the local people, including the APs. The APs will be given priority to be employed during the 37 months project construction with income earnings at over CNY 1,500 per month. In comparison with the income loss due to temporary land occupation at CNY 2,590 per year per person, thus we could see that the APs will gain at least CNY 15,410 per person per year during the Project construction period. It is expected that the temporary income loss can be sufficiently offset by the income earnings from the employment generation.

8.2.2 Employment Opportunities Generated by the Project

176. With the implementation of the Qinzhou City Urban Road Network Component and Related Infrastructures Component, will speed up the urban infrastructure construction and is conducive to the development of tourism industry in Qinzhou City. The Project could also stimulate the flow of people and goods, and promote the local economic development. In addition, currently Qinzhou Port have been completed and put into operation, including Qinzhou Port Phase I over several ten thousand ton berths, two 50,000 ton general berth, 50,000 ton east oil bitumen, and other over several ten thousand berths. Port industry has had rapid development, there have been numerous large-scale petrochemical, metallurgy, energy, paper and other projects moved into Qinzhou. The construction of the Beibu Gulf Economic Zone, China - ASEAN Free Trade Area and Pan-Pearl River Delta in China fully push forward regional economic cooperation, will greatly promote the Qinzhou Port construction and port industry, will facilitate Qinzhou step into billion ton ranks of the world's largest port. Meanwhile, the large ports, large industry, large logistics, major tourism will form healthy, interactive development pattern, and develop a modern and comprehensive port with industry, ecology, tourism, human settlements in harmonious development. Together with the planned large-scale upstream and downstream industries of port and the expansion of

73 the port and regional cooperation will create tremendous employment opportunities. The employment priority will be given to the affected labor force. Table 8-5 provides the annual job opportunities and estimated salary of the potential job positions in next five years generated by Qinzhou City Urban Road and Related Infrastructures Component and urban development in Qinzhou Port Economic Development Zone. The QMG 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 1,255 persons in labor force to be affected by all types of LAR impacts, 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 if the APs prefer these jobs. In comparison with their income from agricultural farming before land acquisition, the income of the APs from the jobs available in Table 8-5 will be much higher than before land acquisition.

Table 8-5: Annual Job Opportunities Created in Next Five Years Average Monthly Annual Annual Job Income Type of Job Income Remark Opportunities Earning Earning (CNY) (No.) (CNY) Construction Mainly for the house and indoor 15,000 1,500―4,000 18,000―36,000 construction and decoration road construction Job opportunities Temporary during the Project workers construction phase during the 11,000 1,200―1,500 14,400―18,000 include security Project guard on site, construction porters, construction workers, etc. Mainly shops within the city or along the street, real estate Sales person 900 1,500―2,000 18,000―24,000 sales person, and shopping plaza sales persons Passenger transport and cargo transport Transportation 1,000 2,500―3,000 30,000―36,000 in Qinzhou City, and taxi drivers. Food and catering service, hotel, and Service 3,500 1,000－1,500 10,800－18,600 domestic house keeping Secretaries of Office staffs 1,550 1,000－2,000 12,000－24,000 corporate and enterprises Beauty and Other hairdressing salon, commercial 12,000 1,500－3,000 18,000－36,000 clothes, grocery, business maintenance, etc. Total 44,950

74 8.2.3 Social Insurance

177. In addition to the above proposed income rehabilitation measures, Qinzhou City Government will provide social security system for the APs in terms of social pension insurance, medical insurance and employment insurance to ensure the livelihood of the APs. 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. Based on the document, Qinzhou City Government has issued “Method on Implementing Social Security System for Rural APs in Qinzhou City”, which states clearly on issues relating to the social pension insurance, medical insurance and employment insurance for rural APs whose land is acquired. For the social insurance, 30% contribution will come from the local government and 70% from rural collective and farmers (The land loss farmers pay 20% based on the 40% of the average wage of the urban workers in last year). All APs would like to pay for the social insurance as it will ensure their livelihood for their whole life in future.

178. 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 over the age of 60. Based on the survey, the majority of the APs are willing to participate in social insurance program. As no formal calculation formula and documents are available, the exact amount to be contributed by the APs to the social insurance program, and the amount of pension to be received by the APs will be calculated based on the specific cases of the APs by the social insurance agencies during the RP implementation.

179. 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, respectively.

8.2.4 Project Related Income Generation Opportunities

180. 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 2,770 person-years or 8.31 million days temporary unskilled employment job opportunities to the local people, including the APs, such as excavation for pipeline and structures and soil and earth transportation.

75

181. 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: 30 landscape workers, 30 road maintenance, 20 safeguard and 40 cleaners. Such employment to be generated by the Project will be provided to the APs as priority if they apply for. The ratio of employment for men and women will be 1:2. The salary will be over CNY 1,500 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.

8.2.5 Provision of Technical Training to the APs

182. In recent years, with the rapid development of Qinzhou City, in particular Qinzhou Port Economic Development Zone’s economy and the establishment of the Beibu-Gulf Economic Development Zone, the improvement of urban infrastructure and sectors in good advantages have experienced fast development in Qinzhou City, in particular the accelerated development of modern and integrated port which will generate a lot of job opportunities. The technical workers and social service labors will be in shortage.

183. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO 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 training of technical and management skills 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.

184. By taking into consideration of 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 about CNY 400 per person has been budgeted as training cost to cover the cost of training provided to the APs. Each AP will get one-time training for the field they choose. The female APs will enjoy the same training budget with the male APs at the training budget.

185. The training will be carried out twice a year, commenced from June 2011 and last till December 2013. The training will be implemented in association with local district government, RC, 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, catering and hotel services, and domestic servant services; and, (6) Sales of products, small business registration and operation.

76 8.2.6 Rehabilitation Plan of Ground Attachments

186. The compensation of ground attachments, including infrastructures and special facilities will be based on the replacement value according to the relevant documents of compensation standards. Compensation in cash will be paid to the affected owners to reconstruct the ground attachments.

187. 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.

188. For the relocation of affected 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.

8.2.7 Special Concerns during Resettlement Process

8.2.7.1 Gender Issue

189. 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.

190. 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.

191. Women will be eligible, on an equal basis, for all compensation payments, training programs and other assistances to be provided. The compensation payment 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 IA will carry out explanation and propaganda work to the affected women and closely involve them in the resettlement process.

192. The IA, RO, WF, and RC 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.

77 8.2.7.2 Assistance to Vulnerable Households

193. Of the total affected, 167 households or 739 persons, including households enjoying five guarantees, households living under MLG, households with disabilities, households under extremely difficulties, and households with female-headed, 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 CNY 250/month·person to these vulnerable households. 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; and 4) provision of micro-credit to them by the local credit unions or local banks. The IA and the local government will assist the APs to get access to micro-credit from local banks.

194. 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, floors and types of houses in the resettlement site; - Provide labor and transportation assistance to the vulnerable groups without charge.

78 IX. COST ESTIMATES

9.1 Compensation and Resettlement Costs

195. 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 211.1128 million, equivalent to US$ 31.046 million in 2010 prices, including 15% contingencies (physical and price). The estimated costs include compensation for collective permanent land acquisition, temporary land occupation, residential structures, auxiliaries, basic infrastructures and special facilities, other costs, land-related taxes, and contingencies. The detailed cost estimates of resettlement are presented in Table 9-1. The summary cost is presented in Table 9-2.

Table 9-1: Detailed Cost Estimates of Resettlement Unit Estimate Cost No. Item Unit Amount Price (CNY) (CNY) 1 Permanent Land Acquisition 90,747,750.00 Collective Land of 1.1 mu 1,960.83 90,747,750.00 Affected Area 1.1. mu Paddy land 273.79 35,000 9,582,650.00 1 1.1. mu Dry land 215.34 32,000 6,890,880.00 2 1.1. mu Vegetable land 91.92 32,000 2,941,440.00 3 1.1. mu Orchard land 123.93 32,000 3,965,760.00 4 1.1. mu Fish pond 251.38 35,000 8,798,300.00 5 1.1. mu Wood land 593.49 32,000 18,991,680.00 6 1.1. mu Grass land 368.22 32,000 11,783,040.00 7 1.1. mu 650,00 Homestead 42.76 27,794,000.00 8 0 Temporary Land 2 mu 91.56 4,135,020.00 Occupation 2.1 Paddy land mu 12.82 35,000 448,700.00 2.2 Dry land mu 10.07 32,000 322,240.00 2.3 Vegetable land mu 4.58 32,000 146,560.00 2.4 Fish pond mu 11.90 35,000 416,500.00 2.5 Wood land mu 32.96 32,000 1,054,720.00 2.6 Waste land mu 17.40 32,000 556,800.00 mu 650,00 2.7 Homestead 1.83 1,189,500.00 0 3 Residential Structure Demolishment 16,771,235.17 Residential m2 3.1 16,371.49 15,918,976.00 Structure 3.1. Brick-concrete m2 1,250. 7,375.90 9,219,875.00 1 00 3.1. Brick-tile m2 6,856.46 850.00 5,827,991.00

79 Unit Estimate Cost No. Item Unit Amount Price (CNY) (CNY) 2 3.1. Mud m2 500.00 1,742.22 871,110.00 3 3.2 Relocation Allowance 852,259.17 3.2. Relocation m2 16,371.49 20.00 327,429.80 1 allowance 3.2. Temporary transit m2@12 16,371.49 13.00 212,829.37 2 subsidy months Subsidy for lost of 3.2. 1,000. working days due to HH 52 52,000.00 3 00 relocation 3.2. Timely signing HH 5,000. 52 260,000.00 4 agreement award 00 4 Ground Attachments 29,462,596.50 4.1 Auxiliaries 24,322,596.50 4.1. 6 5,000 30,000.00 1 Drinking wells No. 4.1. Animal pens 2 396.91 150 59,536.50 2 m 4.1. 200 33,600.00 3 Fences m 168 4.1. 1,500 9,000.00 4 Toilets No, 6 4.1. 3,000 705,000.00 5 Tom bs No. 235 4.1. 32,000 4,228,800.00 6 Fruit trees mu 132.15 4.1. 2 80 124,960.00 7 Sunning ground m 1,562 4.1. 35,000 19,131,700.00 8 Shrimp pond mu 546.62 4.2 Basic Infrastructures and Special Facilities 5,140,000.00 4.2. 54 2,000 108,000.00 1 Electricity pole No. 4.2. Low-voltage 3,290 1,200 3,948,000.00 2 electricity line m 4.2. 1,000 18 15,000 270,000.00 3 220V electricity line m 4.2. 2,090 200 418,000.00 4 Communication line m 4.2. 100 pairs overhead 5 telecommunication 1,000 16 23,000 368,000.00 wires m 4.2. 12 core overhead No. 14 2,000 28,000.00 6 cable wires Basic Costs of LAR 141,116,601.67

5 Other Costs 4,974,614.66 5.1 RP Preparation 100,000 100,000.00 5.2 Administration 2.1% of LAR costs 2,963,448.64

80 Unit Estimate Cost No. Item Unit Amount Price (CNY) (CNY) Costs 5.3 M&E Costs 1% of LAR costs 1,411,166.02 5.4 Training Costs 200,000 500,000.00 6 Land-Related Taxes 43,854,132.00 Land Approval 6.1 2.8% of LA costs 2,540,937.00 Costs Farmland Paddy 8,500. mu 273.79 2,327,215.00 reclamati land 00 6.2 on costs Dry land 5,000. mu 215.32 1,076,600.00 00 Newly Added 6.3 Construction Land m2 1,307,220 28.00 36,602,160.00 Use 6.4 LA Labor Force Fee m2 1,307,220 1.00 1,307,220.00 7 Contingencies 21,167,490.25 7.1 Physical 10% of LAR costs 14,111,660.17 Contingencies 7.2 Price Contingencies 5% of LAR costs 7,055,830.08

Total 211,112,838.58

Table 9-2: Summary Resettlement Costs No. Compensation Project Estimate Cost (CNY) 1 Permanent Land Acquisition 90,747,750.00 2 Temporary Land Occupation 4,135,020.00 3 Demolishment of Residential Houses 16,771,235.17 4 Demolishment of Ground Attachments 29,462,596.50 5 Other Cost 4,974,614.66 6 Land-Related Taxes 43,854,132.00 7 Contingencies 21,167,490.25 8 Total 211,112,838.58

9.2 Annual Budget

196. According to the Project schedule, the project construction will take about 37 months to complete between February 2011 and March 2014. The annual cash flow is estimated to be 40% or CNY 84.4451 million in 2011, 35% or CNY 73.8895 million in 2012, 20% or CNY 42.2226 million in 2013, 5% or CNY 10.5556 million in 2014 respectively. Table 9-3 provides the annual budget of resettlement cost.

Table 9-3: Annual Budget of Resettlement Cost 2011 2012 2013 2014 Total Total Budge 21,111.283 8,444.514 7,388.949 4,222.257 1,055.564 (CNY 10,000) 9 Proportion of Total Budget 40% 35% 20% 5% 100% (%)

81

9.3 Flow of Fund

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

Table 9-4: Flow of Fund Permanent land GQLIIC acquisition of → → RO RC → APs L collective-owned land

Temporary land GQLIIC → → → RO → RC APs occupation L

Residential structures GQLIIC → → RO → RC → APs demolishment L

GQLIIC → APs Auxiliaries → → RO → RC L

GQLIIC Relocation allowance → → RO → RC → APs L

Basic infrastructures GQLIIC → → RO → IA and special facilities L

Investigation and → GQLIIC → DI design cost L

Office administration → GQLIIC → LAR implementation agencies costs L

Training cost → GQLIIC → Training institutions L

M&E → GQLIIC → IMA L

82 X. LAR IMPLEMENTATION SCHEDULE

10.1 Principles

198. The resettlement schedule for land acquisition, structure demolition and resettlement 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.

199. In order to ensure that all aspects of the RP can be achieved, land acquisition will start at least one month before construction. The affected persons can move to new resettlement houses at least one month before old structures are demolished. Before the land acquisition and resettlement, a final measurement survey will be conducted in the affected community, and the contracts with each affected household will be negotiated and signed. The disbursement of compensation should be sufficiently paid. Also, arrangements for land acquisition and structure demolishment will be established before LAR proceeds.

10.2 LAR Implementation Schedule

200. Resettlement implementation will be scheduled in stages to coincide with the overall Project schedule between March 2011 and April 2013. The land acquisition will start from February 2011 to March 2014. It is planned that there will no commencement of civil works until all compensation is paid and all livelihood rehabilitation measures are in place. “In place” means that all arrangements are made to commence rehabilitation and APs are registered for these. It is planned that the land acquisition shall be completed before the start of Project construction.

201. However, before land acquisition and structure demolishment, a final measurement survey will be conducted in the affected community. The compensation contracts will be negotiated and signed. Also, resettlement arrangements should be made before LAR proceeds. Based on the detailed measurement survey (DMS) between December 2010 and January 2011, the RP will be updated and submitted to ADB for review and approval prior to commencement of land acquisition and resettlement and award of contracts.

202. 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 “Structure Demolition Certificate”; - Conduct detailed measurement surveys of the affected area and houses 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.

83 2) Land Acquisition and Resettlement Activities

- Provide compensation payment; - Construct the resettlement site and houses, selection and purchase of houses (including location, floor and type) infrastructure and other facilities; - Transfer APs to new location; and, - Demolish residential structures and auxiliaries.

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 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.

203. 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 February of 2011 and complete in March 2014. The RP planning and implementation schedule with time bound activities is shown in Figure 10-1.

Table 10-1: Resettlement Supervision Milestone Resettlement Responsible No. Target Deadline Status Tasks Agency 1. Disclosure 1.1 - Information 423 AHs IA (GQLIICL) Dec 2010 Planned booklet and 1,861 and RO APs 1.2 - Approved RP 1 District QMG, District Dec 2010 Planned and 1 RC Government, and RO 1.3 - RP posted on QMG, PMO, Dec 2010 Planned ADB website IA and ADB 2. Approval of RP $31.046 QMG, District Dec 2010 Planned and Budget million Government, (Recheck) and RO 3. Agreements 3.1 - Compensation 1 district and QMG, District Jan 2011 Planned rates 1 RC Government,

84 Resettlement Responsible No. Target Deadline Status Tasks Agency QLRB, QHDAO, RO, RC, PMO, and IA 3.1.1 - Households 1,861 APs PMO, IA, Jan 2011 Planned QLRB, – QHDAO, RO, Mar and RC 2014 4. Detailed Plans 3.1 - Community 1 RC PMO, IA, DI, Feb 11 – Planned rehabilitation and RO Mar 14 plans 3.2 - Plan for 167 AHs or PMO, IA, Apr 10 – In process vulnerable 739 APs QMG, Mar 14 group if Qinzhou Civil identified Affairs Bureau, Qinzhou Labor & Social Security Bureau 3.3 - Training Plans All AFs PMO, IA, RO, Jun 11 - Planned for APs training Dec 2013 institutions 6. Establishment PLG, PMO, Aug 10 – In process of IA, RO, Feb 11 Implementation QLRB, Capacity QHDAO, Others 7. Monitoring & Evaluation 7.1 - Baseline 370 HHS or PMO, IA, and April-May Completed survey 1,634 APs DI 10 7.2 - Set-up internal As per RP PMO and IA Feb 11 – Planned supervision Mar 14 7.3 - Hiring external As per RP PMO Jan 2011 Planned monitor 7.4 - Internal Quarterly PMO, IA, and Mar 2011 1st Report monitoring RO reports 7.5 - External Semi-annual IMA Jul 11 1st Report monitoring Jan 12 2nd Report reports 7.6 - Resettlement 1 report IMA All work Completion will be Reports completed in Mar 14 7.7 - Evaluation 4 annual IMA Dec 11 1st Report reports reports Dec 12 2nd Report Dec 13 3rd Report Dec 14 4th Report 8. Documentation of IA, RO, RC Ongoing

85 Resettlement Responsible No. Target Deadline Status Tasks Agency Consultation 9. Documentation of IA, RO, RC Ongoing Grievances 10. Flow of Funds / Compensation 10.1 - To IA 40% QMG Jan 11 Pending 10.2 - To affected RC “ “ “ IA and RO Jan 11 – Mar 14 10.3 - To affected “ “ “ IA and RO Jan 11 – households Mar 14 AFs = Affected Families; GQLIICL = Qinzhou City Guangxi Qinzhou Linhai Industry Investment Co., Ltd.; QMG = Qinzhou Municipal Government; QHDAO = Qinzhou House Demolishment Administration Agency; QLRB= Qinzhou Land Resource Bureau; DI = Design Institutes; IA = Implementation Agency; IMA= Independent Monitoring Agency; PLG= Project Leading Group; PMO = Project Management Office; and RO = Resettlement Office.

86 Figure 10-1: RP Planning and Implementation Schedule

87 88 XI. INSTITUTIONAL FRAMEWORK

11.1 Project Resettlement Organizational Set-up

204. The project leading group is established within the QMG with the PMO as the secretariat communicating with the other agencies concerned. As previously mentioned, GQLIICL 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.

205. 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 Qinzhou Project Management Office (PMO) 2 males & 2 females with experience, Government officer, engineering technicians, education level above college Qinzhou Land Resources Bureau (QLRB) 2 males with experience, Government officer, education level above college Qinzhou House Demolishment Administration 8 males & 3 females with experience, Office (QHDAO) Government officer, education level above college Port District Government (PDG) 1 male & 1 female with experience, Government officer, education level above college GQLIICL / IA 5 males & 2 females with experience, Engineering technicians and management staff, education level above college RO 7 males & 6 females with experience, officers and representatives of APs, education level bovver college RC 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

89 Figure 11-1: Organizational Structure of LAR Implementation

Project Leading PMO Group

Port District Legal Advisory Qinzhou HDAO Qinzhou LRB GQLIICL - IA DI Government Office

IMA

Engineering Office Finance Department Administration Office

Resettlement Office

RC

APs

90 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 among ADB, IA and various agencies concerned.

GQLIICL - 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 structure 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

91 Institutions Responsibilities arbitration. - Handle the illegal action during the land acquisition and relocation process. - Report the land acquisition and house demolishment to IA.

QLRB - 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.

QHDAO - 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 land acquisition, structure 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.

RC - 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 community. - 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.

92 Institutions Responsibilities 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 respective municipal PMO and IA.

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

93 11.3 Institutional Capacity Strengthening

11.3.1 Assessment of Institutional Capacity

11.3.1.1 Logistics and Hardware

206. Currently there is a resettlement office under GQLIICL, which is equipped with a few computers. The RO has 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. The expenditure of the RP will be included in the office expenses. The relevant expenditures for hardware facilities for the RO are budgeted at CNY 50,000.

11.3.1.2 Financing

207. 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

208. 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

209. 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.

210. 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 Qinzhou 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

94 participated in the RP discussions with PPTA Resettlement Consultant must participate.

- Training is planned between June 2011 and December 2013.

95 XII. MONITORING, EVALUATION AND REPORTING

211. 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 RO 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).

212. 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.

213. 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.

214. Resettlement monitoring will focus on the following two aspects:

- Progress of disbursement and provision of entitlements to APs. - Comparison of APs and RC 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

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

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

- Disbursement of entitlements to AP: compensation, house provision, 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 land acquisition, structure demolition, livelihood and income restoration: disbursement of compensation, and selection of houses (location, floor and type), moving, and updating of resettlement schedule and resettlement budget where required.

- Rehabilitation of community facilities and services: Timely rehabilitation of

96 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.

216. 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

217. 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

218. 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.

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

219. 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, community leaders, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, and other vulnerable groups.

Monitoring Indicators

220. The following indicators will be monitored and evaluated in accordance with

97 principles, entitlements and rehabilitation strategies/plans set out in the RP:

 Disbursement of entitlements to affected households: compensation, land, structures, employment, and necessary assistances as specified in the RP.  Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed.  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.  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.  Standard of living: Throughout the whole 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.  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

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

 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.  Care and attention to vulnerable groups: Closely monitor living conditions of the poor, elders, the disabled, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.  Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Qinzhou Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

12.2.2 Methodology

222. 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

98 AP’s living conditions will be made every year to measure the change. Sample trace investigation of affected households 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 community leaders regarding resettlement implementation.

- Community public meetings to collect various information 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 and staff engaged with resettlement.

12.2.3 Major Tasks

223. 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.

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

- Adequacy of compensation and timelines of payment;

- Structure demolition and resettlement of APs;

- Situation of production 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

2. 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.

99 APPENDIX 1: Resettlement Information Booklet

1. Introduction

3. The Qinzhou City Road and Related Infrastructures Component is composed of: No.1 Road (northern section); No.2 Road Northern Section (Phase II); No. 3 Road Northern Section (Phase II); 1st Street; 3rd Street (Phase II); Jingu Outer Ring Road (Phase II), with a total of 6 urban roads, three vertical, two horizontal and one ring road, and total length of 12.208 km. Related Infrastructures include traffic lights, drainage, sewerage pipeline and landscaping. The Project IA is Guangxi Qinzhou Linhai Industry Investment Co., Ltd. (GQLIICL).

2. Impacts of Land Acquisition and Resettlement

4. The Project will mainly involve land acquisition and structure demolishment in Jingu Resident Committee of Qinzhou Port Economic Development Area, Qinzhou City. A total of 1,960.83 mu of collective land will be acquired permanently, including 581.05 mu (29.63%) farmland. The permanent land acquisition will affect 370 households or 1,634 persons. Temporary land occupation will use 91.56 mu with 52 households or 238 APs to be affected. A total of 15,974.58 m2 of residential houses will be demolished, relocating 52 households or 216 persons. Associated ground attachments will also be affected, such as fenced walls, well, animal pens, toilet, grave, fruit tree, sunning ground, shrimp pond, electricity pole, low-voltage power lines, 220V power lines, cable lines, 12 core overhead fiber optic cable lines and 100 pairs of overhead cable lines, etc., including 546.62 mu shrimp ponds illegally developed by local residents or villagers from other outside villages to be moved. The total numbers of the affected households and populations is 423 rural households and 1,861 rural persons. Of the total affected households and populations, 167 households or 739 persons are vulnerable group in the Project area, including 13 households or 37 persons under “five guarantees”, 59 households or 262 persons under minimum living guarantee (MLG), 7 households or 33 persons are disabled, 73 households or 356 persons are families in extremely difficulties, and 15 households or 51 persons are women-headed. Table 1 provides the summary of the land acquisition and resettlement impacts identified, Table 2 provides the impacts of permanent land acquisition, Table 3 temporary land occupation, Table 4 demolishment of residential structures, Table 5 affected ground attachments, Table 6 summary of affected households and populations, and Table 7 affected vulnerable groups.

100 Table 1: Summary Land Acquisition and Resettlement Impacts Ground Total AHs and Administrative Temporary Land Residential House Attachment Permanent Land Acquisition 1 2 APs to Be Jurisdiction Occupation Demolishment Demolishment 3 Affected (No.) (Shrimp Pond) Total Collective Total Total 4 AHs APs AHs APs Total Area AHs APs AHs APs AHs APs District Community Area Land Area 2 Area (No.) (No.) (No.) (No.) (m ) (No.) (No.) 2 (No.) (No.) (No.) (No.) (Mu) (Mu) (Mu) (m ) Port Jingu 1,960.83 1,960.83 370 1,634 91.56 52 238 15,974.58 52 216 546.62 35 141 423 1,861 TOTAL 1,960.83 1,960.83 370 1,634 91.56 52 238 15,974.58 52 216 546.62 35 141 423 1,861 Note: 1 Of the total households to be affected by temporary land occupation, 9 households will be affected by permanent land acquisition. 2 AHs and APs are affected by residential house demolishment will also be affected by permanent land acquisition. 3 Of the 35 households to be affected by the shrimp pond demolition, 25 households will also be affected by permanent land acquisition, and 10 households will only be affected by shrimp pond demolishment including 8 households coming from other places outside the area. 4 Please note that the total area of permanent land acquisition exclude the area that the APs planted the trees and have shrimp farming on the land which was not contracted by the village collective, the area of fruit trees and shrimp pond is listed in the impact of the ground attachments.

Table 2: Impacts of Permanent Land Acquisition by Community Group Area of Type of Permanent Land Acquisition (Mu) Permanent Affected No. of No. of Collective Community Affected Affected Land Paddy Orchard Vegetable Dry Fish Wood Grass Home- Group Households Population Acquisition Land Land Land land Pond Land Land stead (Mu) Group 1 62 246 319.72 43.19 18.64 14.29 35.61 39.29 103.21 58.28 7.21 Group 2 43 179 231.97 31.26 13.83 9.86 27.46 30.54 68.73 45.36 4.93 Group 3 27 128 148.64 19.76 8.21 6.75 16.61 20.37 45.23 28.47 3.24 Jingu Group 4 33 157 170.87 24.48 10.25 7.52 19.63 23.45 48.96 33.22 3.36 Group 5 42 166 228.44 33.64 14.62 10.22 25.31 29.73 63.67 46.62 4.63 Group 6 56 223 276.03 43.63 19.67 10.1 29.56 36.76 82.46 47.31 6.54 Group 8 45 212 240.34 23.91 16.36 14.55 27.38 32.67 71.55 48.64 5.28

101 Area of Type of Permanent Land Acquisition (Mu) Permanent Affected No. of No. of Collective Community Affected Affected Land Paddy Orchard Vegetable Dry Fish Wood Grass Home- Group Households Population Acquisition Land Land Land land Pond Land Land stead (Mu) Group 12 62 323 344.82 53.92 22.35 18.63 33.78 38.57 109.68 60.32 7.57 TOTAL 370 1,634 1,960.83 273.79 123.93 91.92 215.34 251.38 593.49 368.22 42.76

102

Table 3: Impacts of Temporary Land Occupation Area of Type of Temporary Land Occupation (Mu) Temporary Affected AHs APs Collective Waste Home Paddy Veg. Dry Fish Wood Community (No.) (No.) Land - - Land Land land Pond Land Occupation land stead (Mu) 10. 11.9 32.9 17.4 52 238 91.56 12.82 4.58 1.83 Jingu 07 0 6 0 10. 11.9 32.9 17.4 52 238 91.56 12.82 4.58 1.83 TOTAL 07 0 6 0 Note: Of the 9 HHs to be affected by temporary land occupation will also be affected by permanent land acquisition.

Table 4: Demolishment of Residential Structures Affected AHs APs Area of Residential Structure (m2) Community (No.) (No.) Brick-Concrete Brick-Tile Mud Total Jingu 52 216 7,375.9 6,856.46 1,742.22 16,371.49 TOTAL 52 216 7,375.9 6,856.46 1,742.22 16,371.49 Note: AHs and APs are affected by residential house demolishment will also be affected by permanent land acquisition.

Table 5: Affected Ground Attachments Items Unit Quantity Auxiliaries Wells of Drinking Water No. 6 Animal Pens m2 396.91 Fences m 168 Toilets No. 6 Tombs No. 235 Fruit Trees mu 132.15 Sunning Ground m2 1,562 Shrimp Pond mu 546.62 Basic Infrastructures and Special Facilities Electric Pole No. 54 Low-Voltage Electricity Power Line m 3,290 220V Electric Power Line 1,000 m 18 Communication Line m 2,090 Overhead Cables (100 paired wires) 1,000 m 16 Overhead Cables (12 wires) No. 14

103 Table 6: Summary of Affected Households and Populations (Unit: No.) Residential Ground Total AHs and Permanent Land Temporary Land Administrative Jurisdiction Structure Attachments APs by Different Acquisition Occupation Demolishment Demolishment Impacts

Resident AHs APs AHs APs AHs APs AHs APs AHs APs City District 1 1 Committee (no.) (no.) (no.) (no.) (no.) (no.) (no.) (no.) (no.) (no.)

Qinzhou 35 141 Qinzhou Jingu 370 1,634 52 238 52 216 423 1,861 Port TOTAL 370 1,634 52 238 52 216 35 141 423 1,861 Note: Of the 35 AHs to be affected by shrimp ponds demolishment, 25 HHs are affected by shrimp pond demolishment and will also be affected by permanent land acquisition, and 10 HHs will only be affected by shrimp pond demolishment including 8 AHs from other places outside of Jingu RC.

104 Table 7: Type and Quantity of Affected Vulnerable Groups Jingu Resident Committee Vulnerable Groups Type AHs APs “Five Guarantees” Family 1 13 37 Household Living Under the Minimum 2 59 262 Living Security Line Families with Disabled 7 33 Female-headed Households 3 15 51 Extremely Poor Family4 73 356

Total 167 739 Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/promises; and, 2 Households living under MLG are classified as the poor households. 3 Families with the labour force mainly on female. 4 The people excluded in the safeguard object of system of safeguard lowest life, but because of illness or accident caused temporary difficulties, they cannot maintain daily life, for the relief mostly the issue of interim relief, and the amount is different by region.

3. Appeals and Grievance Procedures

5. 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 basic grievance procedures include the following steps.

Stage 1: 6. 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 resident committee (RC) or in oral or in written form. If an oral appeal is made, the RC will record it on paper and process it. Resident committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2: 7. 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: 8. If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Qinzhou Project Management Office (QPMO) or Qinzhou Land Resources Bureau (QLRB) or Qinzhou House Demolishment Administration Office (QHDAO) after receiving the decision. The Qinzhou City PMO or QLRB or QHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4: 9. If the aggrieved AP is still unsatisfied with the decision of the QPMO or QLRB or QHDAO, he/she will appeal to the GZAR LRB or HDAO after receiving the decision. The GZAR LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

105 Stage 5: 10. If the AP is still dissatisfied with the decision of the GZAR 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 from GZAR LRB or HDAO. The AP will be informed of the result via written notice. . 11. The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

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

4. Legal Framework and Policies

13. 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:

 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;  Land Administration Law of the PRC, amended in 2004;  Implementation Regulation for Land Administration Law of PRC; December 1998;  Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Cai Zong [2002] 93];  Temporary Regulations on Farmland Acquisition Tax of PRC, 2008;  GZAR “Land Administration Law”, 2001;  Management Law of Urban Real Estate of PRC, 1994;  Guidelines for Valuation on Urban House Demolishment of PRC; 2004;  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;  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;  Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52];  Implementation Methods of GZAR farmland occupation tax [Guizhengfa (1987) 88 Hao 59];  Notice of Compensation and Resettlement Method for Land Acquisition and Resettlement of Four Lines and Four Areas Construction in Qinzhou City, 2009;  Unified Standard of Annual Output Value Document issued by the People's Government of Qinzhou City, 27th January, 2010;  ADB’s Safeguard Policy Statement 2009;  Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998;  Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003; and,

106  OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006.  ADB’s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010).

4.1 Eligibility and Principles of Compensation

14. The Project affected persons (APs) are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected area. All landowners and users and occupants of structures 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 who are there before the cut-off date determined by Qinzhou 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 structures built after the cut-off date determined by the local government will not be compensated.

15. The principle of the compensation and entitlements established for the Project are to: Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible; Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

4.2 Compensation Standards and Entitlements

16. Compensation for the land loss, structures, auxiliaries and other assets, basic infrastructures and facilities will also be paid directly to the affected owners. The compensation will be made in the forms of “cash” for land compensation for the permanent loss of land, and “cash” for structure compensation to purchase houses in resettlement site of Jiduntou RC. The relocated households will get relocation allowance and temporary transit allowance. The cut-off date will be determined by QMG in collaboration with relevant organizations involved, including PMO, IA, QLRB, QHDAO, and district government. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. QMG, IA, QLRB and QHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. QMG will publicize the cut-off date on newspaper of “Qinzhou Daily” and community / village bulletin board once the date is decided. The cut-off date will usually be upon the completion of DMS. Table 8 presents the eligibility, compensation rates and entitlements.

107 Table 8: Eligibility, Compensation Rates and Entitlements Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible Permanent land Collective-Owned Land: “Cash” will be provided to all APs Compensation rates of land loss to PMO, GQLIICL, acquisition 1,960.83 mu collective-owned affected by permanent land the rural APs: 20 times multiplier of QMG, QLRB, RC (370 rural land will be acquired acquisition of paddy land, orchard AAOV at CNY 35,000 / mu for paddy and RO households and permanently for the Project, land, vegetable land, dryland, fish land, CNY 32,000 / mu for dry land, 1,634 rural including 273.79 mu paddy pond, and house plot land. The CNY 32,000 / mu for vegetable land, populations) land, 123.93 mu orchard land, compensation rates include the three CNY 32,000 / mu for orchard land, 91.92 mu vegetable land, items of land compensation, CNY 35,000 / mu for fish pond, CNY 215.34 mu dry land, 251.38 mu resettlement subsidy and standing 32,000 / mu for woodland, CNY fish pond, 593.4 mu woodland, crop compensation at market 32,000 / mu for grassland, CNY 368.22 mu grassland, and replacement value and all of them will 650,000 / mu for house plot land. All 42.76 mu house plot land. be paid to the individuals. compensation rates to be paid are at replacement value The following livelihood Cash compensation for the rural rehabilitation measures will also be collective land acquisition of wood provided to all APs including the land and grass land will be paid to the shrimp farmers: i) various affected RC directly to be used for employment and income social insurance program of the land generation opportunities during the losers and improvement of public Project construction and operation infrastructures for the community. phases; ii) development of self-employed tertiary businesses; and iii) provision of technical training to the APs.

The following provisions will be provided to the vulnerable groups to rehabilitate their income: i) MLG fund at CNY 200/month; ii) training without charge will be provided to them to increase the knowledge

108 Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible and skills of the vulnerable groups; iii) provision social safeguard program; iv) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and v) provision of micro-credit to them by the local rural credit union or local banks. The IA and the local government will assist the APs to get access to micro-credit from local banks.

For the provision of social insurance, 30% will be contributed by the local government and 70% contribution from rural collectives and farmers (The land lost farmers pay 20% based on the 40% of the average wage of the urban workers in last year). Temporary Land A total of 91.56 mu of collective Cash compensation will be paid to Compensation standards to the PMO, GQLIICL, Occupation (52 land will be occupied, including the affected people directly for farmers for the loss of standing QLRB, and RO AHs or 238 APs) 12.82 mu paddy land, 4.58 mu standing crop compensation. crops: CNY 1,798 / mu for paddy vegetable land, 10.07 mu dry land; CNY 1,393 / mu for dry land; land, 11.9 mu fish pond, 32.96 Land recovery fees will be paid to the CNY 4,699 / mu for vegetable land; mu woodland, 17.4 mu contractors. CNY 5,055 / mu for fish pond; CNY wasteland, and 1.83 mu house 4,395 / mu for woodland. plot land. Compensation standards of land

109 Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible recovery fee: CNY 33,202 / mu for paddy land; CNY 30,607 / mu for dry land; CNY 27,301 / mu for vegetable land; CNY 29,945 / mu for fish pond; CNY 27,605 / mu for woodland, CNY 32,000 / mu for wasteland, CNY 650,000 / mu for house plot land.

After temporary land use, the land will be restored to original condition and keep the same quality by the contractors. Residential A total of 15,974.58 m2 All APs will be provided with “cash” Compensation for the affected PMO, GQLIICL, structures (52 residential structures will be compensation to purchase new structures at full replacement costs QLRB, QHDAO, households or demolished, including 7,375.9 houses at centralized resettlement of materials and labors with no Qinzhou Port 216 rural m2 brick-concrete, 6,856.46 m2 site. deduction for depreciation or District populations). brick-tile, and 1,742.22 m2 mud salvageable materials. Government, and house. The cut-off date will be determined by RC and RO QMG in collaboration with relevant The compensation standards for organizations involved, including structures are: CNY 1,250/m2 for PMO, IA, QLRB, QHDAO, and district brick-concrete, CNY 850/m2 for government. Illegal land-use, brick-tile, CNY 500/m2 for mud construction of temporary structures house. will not be compensated after the notification of cut-off date. QMG, IA, Relocation allowance will be paid to QLRB and QHDAO could take the AHs in cash at CNY 8/m2 within photos/video of the places on the 12 months and Temporary transit cut-off date to prevent further influx allowance at CNY 8/m2 for a beyond the cut-off date. QMG will maximum of 12 months will be publicize the cut-off date on provided to each affected newspaper of “Qinzhou Daily” and household. The compensation for community bulletin board once the

110 Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible date is decided. lost of working days due to relocation is CNY 300 per Relocation allowance and temporary household. If the affected transit allowance in cash will be households signed an agreement on provided to the APs time, each household will receive CNY 5,000 as award for timely signing the agreement. The IA and local government will assist the APs on the selection and allocation of new houses and relocation.

The following provisions will be provided to the vulnerable groups: i) For the elderly or disabled or women-headed families, priority should be provided to them during the selection of the location of reconstruction house land; and ii) Provide labor and transportation assistance to the vulnerable groups without charge. Ground 6 drinking wells, 396.91 m2 546.62 mu All affected people or Cash compensation will be paid to PMO, GQLIICL, attachments animal pens, 168 m2 of fenced illegally owners will get all affected people or owners: CNY RC, Qinzhou Port walls, 6 toilets, 235 tombs, developed equivalent amount of 5,000 / each for drinking well, CNY District 132.15 mu fruit trees, 1,562 m2 shrimp cash compensation. 150 / m2 for animal pen, CNY 200 / Government, and sunning ground, and 546.62 mu pond (35 m2 for fenced wall, CNY 1,500 / each RO shrimp pond. HHs to be for toilet, CNY 3,000 / each for tomb, affected, CNY 32,000 / mu for fruit tree, CNY 54 electricity poles, 3,290 m including 8 80 / m2 for sunning ground, CNY low-voltage power lines, 18 km HHs from 35,000 / mu for shrimp pond. of 220v power lines, 2,090 m other

111 Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible telecommunication lines, 16 km places For those families who will lose the of 100 pairs of overhead outside of shrimp farming, in addition of cash telecommunication wires, 14 the RC) compensation will be paid to them, 12-core overhead cable wires. the following livelihood rehabilitation measures will also be provided to them: i) various employment and income generation opportunities during the Project construction and operation phases; ii) development of self-employed tertiary businesses; and iii) provision of technical training to the APs.

Cash compensation will be paid to all affected owners: CNY 2,000 / each for electricity pole, CNY 1,200 / m for low-voltage power lines, CNY 15,000 / km for 220v power lines, CNY 200 / m for telecommunication lines, CNY 23,000 / km for 100 pairs of overhead telecommunication wires, CNY 2,000 / km for 12 core overhead cable wires.

112 5. Resettlement and Rehabilitation Plan

17. 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:

18. For people losing land permanently, “cash” compensation will be provided to the APs. The PMO, IA, RO and local government will provide necessary assistance during LAR implementation. The measures for economic rehabilitation include: (i) provision of 2,770 person-years of employment opportunities to the local people, including the APs in labor force during the Project construction and 120 public welfare job positions during operational phases if the APs prefer to take the jobs; (ii) Developing tertiary industry such as construction machinery and equipment rental, grocery store, clothes retail, food catering service, transportation, taxi, goods delivery service, hairdressing salon, dry cleaning, entertainment, hotel, tours, etc) (iii) provision of social insurance, with 30% contribution from the local government and 70% contribution from rural collectives and farmers (The land lost farmers pay 20% based on the 40% of the average wage of the urban workers in last year); (iv) annual employment opportunities generated induced by the Project and related urban development projects. The QMG 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; (v) provision of technical training to 1,102 APs in labor force to increase their skills to be employed in institutions, enterprises and businesses.

19. For the people who will lose their land temporarily, standing crops compensation will be paid to the affected persons in cash. Land restoration fee is included in project fee and paid to contractors. The temporary land occupation will be restored to original condition and keep the same quality as before by the contractors. The Project construction will generate 2,770 person-years or 3.81 million days short-term employment opportunities. The APs will be given priority to be employed during the 36 months project construction with income earnings at over CNY 1,500 per month.

20. For residential houses structures to be demolished, cash compensation will be provided to the relocated families to purchase new houses in the resettlement site of Jiduntou RC. The households that have to be relocated will also receive a relocation allowance, relocation transit allowance and lost of working days. Compensation for ground attachments will be paid to the affected owners.

Employment Opportunities Generated by the Project 21. 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 2,770 persons / year temporary employment job opportunities, such as excavation for pipeline and structures and soil and earth transportation, to the local people including the APs.

22. 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

113 have been completed, it is planned that 120 public welfare position jobs shall be provided for the APs if the APs would like to apply for the jobs based on discussion with the IA: 30 landscape workers, 30 road maintenance, 20 safeguard and 40 cleaners. The ratio of employment for men and women will be 1:2. The salary will be over CNY 1,500 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.

Provision of Technical Training to the APs 23. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO 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.

24. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO 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.

25. By taking into consideration of 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 CNY 400 per person has been budgeted as training cost to cover the cost of training provided to the APs.

26. The training will be carried out twice a year, commenced from June 2011 and last till December 2013. The training will be implemented in association with local district government, RC, 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, catering and hotel services, and domestic servant services; and, (6) Sales of products, small business registration and operation.

6. Cost and Schedule

27. The cost estimate for land acquisition and resettlement is CNY 212.8865 million or US$ 31.3068 million at the prices of 2010, including compensation for permanent land acquisition, temporary land occupation, residential house demolishment, auxiliaries, relocation allowances, infrastructures and special facilities, relevant land taxes, M&E, other costs, and contingency. The land acquisition and resettlement activities will occur between February 2011 and March 2014. Construction will not take place before the APs are fully compensated and relocated, and all arrangements are made to commence the livelihood rehabilitation activities and the APs are registered for these. Internal and external monitoring of the RP implementation will be conducted to ensure successful implementation of the RP.

114 APPENDIX 2: TOR for External Monitoring and Evaluation

A. Introduction

28. 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 Beibu Gulf Cities Development Project 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.

29. 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.

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

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

B. Objectives and Requirements of Monitoring and Evaluation

31. 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.

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

32. 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, resident leaders, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, and other vulnerable groups.

C. Monitoring Indicators

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

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 Disbursement of entitlements to affected households: compensation, reconstruction land, reconstruction house land, employment, and necessary assistance as specified in the RP.  Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed.  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.  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.  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.  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

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

 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 agency will also provide recommendations and assistance to the EA in respect of women’s issues.  Care and attention to vulnerable groups if identified during implementation process: closely monitor living conditions of the poor, elders, the disabled, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.  Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Qinzhou 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

35. A monitoring report will include, among other things:

 conclusion of investigation and evaluation;  major existing and potential problems;  recommended mitigation or prevention measures which will be incorporated into a revised plan if necessary; and,

116  assessment of previous follow-up actions.

36. 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

37. The Monitor will provide the ADB, PMO, IA, RO, QLRB, QHDAO 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 Baseline Survey of Socioeconomic 1 April-May, 2010 Information 2 First Monitoring Report 31 July, 2011 3 Second Monitoring Report 31 December, 2011 4 Third Monitoring Report 31 July, 2012 5 Fourth Monitoring Report 31 December, 2012 6 Fifth Monitoring Report 31 July, 2013 7 Sixth Monitoring Report 31 December, 2013 8 Resettlement Completion Report 31 July, 2014 9 First Annual Evaluation Report 31 December, 2014 10 Second Annual Evaluation Report 31 December, 2015

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