Resettlement Plan: People's Republic of China, Emergency Assistance For

Resettlement Plan Document Stage: Final Project Number: 42496 August 2010

PRC: Emergency Assistance for Wenchuan Earthquake Reconstruction Project

Prepared by Baoji Municipal GovernmentShaanxi Province

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

Chencang District Post-disaster Reconstruction Transport Project Supported by ADB's Emergency Loan

Resettlement Plan

August 15, 2010 Baoji Municipal GovernmentShaanxi Province

Table of Contents

EXECUTIVE SUMMARY...... 5 SKETCH MAP OF PROPOSED PROJECT ...... 8 1. PROJECT DESCRIPTION ...... 9 1.1 Project background...... 9 1.2 The components of the Project ...... 9 1.3 Arrangement of the investment and implementation ...... 10 1.4 Economical and technological feasibility study and earlier stage work...... 10 1.5 Potential adverse impacts...... 10 1.6 Executing and implementing agencies ...... 10 2. SCOPE OF PROJECT IMPACT...... 11 2.1 Principles and measures to reduce project impact ...... 11 2.1.1 Principles ...... 11 2.1.2 Measures ...... 11 2.2 Number and kinds of the project impact ...... 12 2.2.1 Types of project impacts ...... 12 2.2.2 Building Demolition ...... 12 2.2.3 Land Acquisition...... 12 2.2.4 Ground attachments...... 12 2.2.5 Other facilities ...... 12 2.2.6 Total number of affected persons...... 12 2.3 Evaluation on project impact...... 14 3. SOCIOECONOMIC INFORMATION AND PROFILE ...... 16 3.1 Introduction of earlier-stage Survey on the project...... 16 3.2 Socioeconomic overview of project affected areas...... 17 3.2.1 Introduction of project affected areas ...... 17 3.2.2 Investigation data of affected villages...... 17 3.2.3 Data analysis ...... 19 3.3 Poverty...... 20 3.4 Minorities...... 20 4. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ...... 21 4.1 Information Disclosure and Consultation ...... 21 4.2 Public participation...... 21 4.3 Village Meetings...... 22 5. GRIEVANCE REDRESS MECHANISMS...... 23 5.1 Agencies handling complaints and appeals...... 23 5.2 Scope of complaints and claims ...... 24 5.3 Appeal procedures...... 24 5.4 ADB Accountability Mechanism ...... 24 6. LEGAL FRAMEWORK ...... 25 6.1 National Laws and Regulations Concerning Acquisition and Relocation...... 25 6.2 ADB's Policy on Involuntary Resettlement...... 26 7. ENTITLEMENTS, COMPENSATION AND BENEFITS ...... 29 7.1 Policy and Principles...... 29 7.2 Compensation Standards ...... 30

7.2.1 House Compensation...... 30 7.2.2 Land Compensation Standard...... 30 7.2..3 Compensation for young crops ...... 31 7.2.4 Other Affected Facilities ...... 32 7.2.5 Evaluation of the Compensation Standard ...... 32 7.2.6 Payment of Compensation Fee...... 32 7.2.7 Temporary occupied land...... 33 7.2.8 House Relocation and Transition Subsidies...... 33 7.2.9 Compensation scope of land acquisition and resettlement...... 33 7.3 Payment and monitoring of village-level land compensation ...... 33 7.3.1 Inspection and preparation before transferring the fund...... 34 7.3.2 Management and monitoring of fund utilization...... 34 7.3.3 Auditing...... 34 8. HOUSE RELOCATION AND INCOME RESTORATION...... 35 8.1 Rehabilitation Planning Principles...... 35 8.3 House Relocation...... 36 8.4 Economic rehabilitation program for vulnerable groups ...... 36 8.5 Special Measures for Women...... 37 8.6 Rehabilitation program of special facilities...... 37 9. RESETTLEMENT BUDGET AND FINANCING PLAN ...... 40 9.1 Cost estimates ...... 40 9.1.1 Basic costs...... 40 9.1.2 Contingency cost ...... 40 9.1.3 Management cost ...... 40 9.2 Fund Flow ...... 41 9.3 Fund sources and use of contingency cost...... 42 10. INSTITUTIONAL ARRANGEMENTS ...... 43 10.1 Coordination agencies ...... 43 10.2 Implementing agency...... 43 10.3 Village Committees and Village Groups ...... 43 10.4 Internal supervision agency ...... 44 11. IMPLEMENTATION SCHEDULE ...... 45 11.1 Preparation stage (January 2009---September 2010) ...... 45 11.2 Implementation stage (December 2010—March2011) ...... 45 11.3 Rehabilitation stage (March 2011----December 2011)...... 46 11.4 Monitoring and Evaluation stage (December 2010—December 2011) ...... 46 11. MONITORING AND EVALUATION ...... 48 11.1 Internal Supervision ...... 48 11.1.1 Contents of internal Supervision ...... 48 11.1.2 The method of internal supervision ...... 48 11.1.3 The implementation of the internal supervision ...... 49 11.1.4 The responsibilities of supervision agencies ...... 49 11.1.5 Procedure and demand of supervision agencies...... 49 11.2 External monitoring and evaluation...... 49

Tables

Table 1 Scope of Project Impacts...... 13 Table 2 Permanent Land Acquisition ...... 13 Table 3 Building Demolition ...... 14 Table 4 Ground Attachment...... 14 Table 5 Special Facilities ...... 14 Table 6 Agricultural crop income in project area...... 15 Table 7 Socioeconomic data of the affected area...... 18 Table 8 Basic data of the 255 affected sample households...... 19 Table 9 Appeal and lawsuit agencies and procedure ...... 23 Table 10: Rural Housing Compensation Standards...... 30 Table 11 Land Compensation Standard...... 31 Table 12 AAOV of the Affected Areas...... 31 Table 13 Affiliated Facilities Compensation Standard ...... 32 Table 14 Skill Training Plan ...... 36 Table 15 Matrix of affected persons’ compensation rights and relocation policy ...... 38 Table 16: Land Acquisition and Resettlement Budget ...... 40 Table 17 Land Compensation Breakdowns ...... 41 Table 18 Housing Compensation Breakdowns...... 41 Table 19 Ground Attachment Breakdowns (1)...... 41 Table20 Ground Attachment Breakdowns (2)...... 41 Table21 Young Crop Compensation...... 41 Table 22 Schedule of land acquisition, housing demolition and resident resettlement ...... 46

EXECUTIVE SUMMARY

A. Project background 1. Due to “512” Wenchuan great earthquake, Ningqiang 8.0 Richter-scale earthquake and other continuous aftershocks, the traffic facilities in Baoji City suffered a lot, and the direct losses reached RMB 94 million yuan. Baoji City’s Overall Plan on Baoji Post- disaster Reconstruction arranges Chencang District post-disaster reconstruction traffic project supported by ADB’s emergency loan. There are three subprojects including 17 independent constructions. The first one is to reconstruct the Shiyangmiao Qian River Bridge, the second is to rebuild the rural highways to villages, including 11 independent constructions, and the third is to rebuild the town highways, including 5 independent constructions. The budget of these constructions is RMB134 million yuan, including the total loan USD15.80 million (RMB108 million yuan).The cost of land acquisition and housing demolition will be paid by the county (district) government and the government will try to apply the fund from the central government and the provincial government. The estimate cost will be up to RMB12.7161 yuan. SDRC approved the reports on the feasibility studies respectively on February 11 2009 and April 29 2009. At present, except that the design of Shiyangmiao Qianhe River Bridge to pass the Baozhong Railway is being discussed with the railway administration, other designs have been finished and have been approved by Baoji Transport Bureau.

B. Project impacts 2. According to the design draft and fieldwork survey, the Project will affect a total of 506 households or 2013 persons, in which 1,553 villagers in 395 households in 17 villages are affected by land acquisition, accounting for 4.45% and 4.24% respectively of the total households and persons in the affected villages, 460 persons in 111 households will be affected by the housing demolition, accounting for 1.25% of the total persons and households of the affected villages. The project will acquire 141.74 mu lands, which accounts for 0.37% of the total 38,528 mu farmland of the 17 affected villages. 12942.5㎡ building will be demolished. When the project is implemented, the affected villagers will be relocated in their own villages. So, the construction of the project will not affect seriously the villagers who are affected by the housing demolition.

C. Resettlement Policies, Compensation, and rehabilitation measures 3. To protect relocated people’s legal rights and to guarantee relocated quality of the relocated people are stipulated in both our country’s relevant policy and laws and ADB’s policy, mainly include The Land Administration Law of the People's Republic of China (Amended in 2004), Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28), and ADB Policy on Involuntary Resettlement (1995). In accordance with legal regulations concerning land acquisition and relocation by the national and local governments and guiding principles of ADB concerning relocation and resettlement, the Project shall be implemented in adherence to improving or not lowering the production conditions and living standard of the affected people. Therefore, the project will base on the spirit and demand of Decision on Furthering Reform of Land Management of the State Council and Notice on issuing the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of China and work out the plan of compensation.

4. The compensation for land acquisition including land compensation and resettlement subsidies is formulated on the basis of 16 times of Average Annual Output Value. The major rehabilitation measure for affected households is to adjust farmland within the affected village, in order to make affected households enjoy the same amount of farmland as other villagers after land acquisition, consequently mitigate the project impacts on individual

households. The land compensation fund will be used to improve community infrastructures and productive facilities after concurrence by village representative meeting. House demolition will be compensated at replacement cost, and village will allocate a housing plot for each affected household to construct new house.

D. Budget for land acquisition and resettlement 5. The total land acquisition and relocation cost is RMB 12.716 million yuan, among it, the basic cost is RMB 9.2954 million yuan.， the administration cost is RMB 260,270 yuan, the service charge RMB 278,860 yuan, the monitoring and evaluation cost is RMB 46,477 yuan, the plan make-out cost is RMB 46,477 yuan, and the contingency cost is RMB 2,788,609 yuan. Land acquisition, relocation compensation cost shall be paid directly to villager’s committee and affected individual by the District Project Office after the fund is paid to the bank and the District Project Office by the implementing agency.

E. Implementation Schedule 6. The land acquisition, housing demolition and resident resettlement plan begins in December, 2010, and will be finished one month before the construction. The plan is divided into 3 stages: the first, preparation; the second, implementation; the third, inspection/monitoring/assess (internal and external monitoring will be in the all implementation process).

7. Preparation stage is from January 2009 to September 2010. The main job is to set up project administration agency, to propaganda, to erect boundary markers, and to measure and check kind and quantity of affected land, housing and other facilities in site. This job is undertaken by the Project Office and affected villages.

8. Implementation stage is from December 2010 to March 2011. The main job is to sign an agreement on land expropriation, housing demolition and resident relocation compensation with affected villages’ Villagers’ Committee and affected villagers, to report documents of occupied land, to choose site and build new house, to transfer housing compensation and land compensation, and to transfer construction land to the project construction unit after finishing the land expropriation, housing demolition and resident relocation. Relocation together with compensation will precede housing demolition.

9. Rehabilitation stage is from March 2011 to December 2011. The main job is to adjust land, to implement economic rehabilitation plan and measures, and to have a affected individuals’ skill training. The implementation of land adjustment, economic rehabilitation measures, and skill training will be ongoing during the construction phase.

F. Organizational arrangement 10. The project is directed by the office (Shaanxi Provincial Project Office: in Shaanxi Using Overseas Loan Office) of the Leading Group, which is in charge of organizing, applying for ADB’s loan, coordinating relocation, monitoring and inspecting the payment of usage of the compensation for land acquisition and resettlement. Baoji City Chencang District Post-disaster Reconstruction Leading Office is the project implementing agency. Baoji City Chencang District Transport Bureau is in charge of organizing and coordinating compensation of land acquisition and relocation.

G. Public participation 11. As a vital social activity for land acquisition, resettlement and compensation, information and consultation should be well-prepared with the aim to make every correlative individual acquaint with the significance, processes, appropriation, compensation, appeal and the way of settlement and problems existing in the project construction and consultation

shall be carried on before hand.

12. The project resettlement policy and compensation rates were disclosed through meetings with affected villages. Each affected village has held the village meetings from May to June 2010, which invited the leaders of the village, the representatives of affected individuals, the representatives of the poor to take part in, discussing the policy of resident resettlement, the implementation plan, etc. The minutes of village meetings indicate that local communities and villagers strongly support the construction of the Project, and agree the compensation rates provided in the resettlement plan. After the RP (the first draft) was finished by the end of August 2010, the RP was printed and distributed to affected district project office,. At the same time, the information handbook of land acquisition, housing demolition and resident resettlement was distributed to all the affected villagers.

13. Besides efficient information and consultation, people’s governments at all levels and representatives of affected individuals will be invited to take part in the Project. They will know the whole process of land acquisition, housing demolition and resident resettlement compensation. And they can monitor whether all the work is undertaken in line with RP terms and ensure that the benefit of affected individuals is well considered.

H. Grievance and Appeal

14. The subproject established an appeal procedure for the complaints may be received from project affected people. If affected people complain about land acquisition, housing demolition and relocation, they may approach village committee first. If the problem cannot be solved, they may report to the county (district) project office, which should help to coordinate and resolve. If the resident doesn't receive any response in three weeks or is not satisfied, he/she can claim to the project management office at municipal level.

15. If the problem is still not solved in three weeks or the affected individuals are not satisfied, they can make a lawsuit to county (district) people’s court according to legal procedure. If the affected individuals are not satisfied with the judgment made by county(district ) people’s court, they can appeal to the municipal intermediate people’s court. The judgment made by the intermediate people's court is final; the affected individuals must obey the judgment. In addition, ADB’s Accountability Mechanism is also applicable for the subproject.

I. Monitoring and evaluation 16. In order to guarantee the smooth process of the land acquisition, housing demolition and resident resettlement compensation, there are two kinds of supervision carried out simultaneously by two independent organizations in different ways: the first, an internal supervision system by the government to monitor according to RAP terms in the angle of administrative management; and the second, an external monitoring and evaluation system by sociologists to assess whether resettlement objectives have been met.

I. SKETCH MAP OF PROPOSED PROJECT

1. PROJECT DESCRIPTION

1.1 Project background

17. Due to “512” Wenchuan great earthquake, Ningqiang 8.0 Richter-scale earthquake and other continuous aftershocks, 92 counties in 11 cities (district) of Shaanxi Province suffered in different degrees, the affected population reached to 3,265,600, and the direct losses were RMB 24.5 billion yuan. Especially, 40 counties (districts) in Hanzhong City, Baoji City, Xiangyang City, Xi'an City and Yangling District suffered a lot. In order to propel post- disaster reconstruction, the State Council issued Regulations on Wenchun Earthquake Post- disaster Reconstruction, Guidances on Wenchun Earthquake Post-disaster Reconstruction (Guofa 2008 No. 22), and Notice on Wenchun Earthquake Post-disaster Reconstruction Overall Plan (Guofa 2008 No. 31).

18. In order to regain the normal life and production, to offset the losses to the affected population, and propel the socioeconomic development of the earthquake-hit areas, the People's Government of Baoji City, in accordance with the above regulations of the State Council and Overall Plan on Baoji Post-disaster Reconstruction issued by Shaanxi Province and the situation of Baoji City, made out Overall Plan on Baoji City Post-disaster Reconstruction and issued to carry out on October 31, 2008. The damage of traffic transport facilities in Baoji were: 21 highways, 128 bridges, 5 channels and some others, and the direct losses reached RMB 94 million yuan.

19. According to Overall Plan on Baoji Post-disaster Reconstruction, there are three subprojects for traffic facilities in Chencang District of Baoji City supported by the ADB emergency loan. The first one is to reconstruct the Shiyangmiao Qian River Bridge, the second is to rebuild the rural highways to villages, and the third is to rebuild the town highways. There are 17 independent construction contracts and the total loan reaches USD15.80 million (RMB108 million yuan). The total project budget of these constructions is RMB134 million yuan.

1.2 The components of the Project

20. There are three subprojects for traffic facilities in Chencang District of Baoji City supported by the ADB emergency loan. A. To rebuild the Shiyangmiao Qian River Bridge: the length of the bridge is 2.173 km and the width is 12m, consisting of 185.1m main bridge and 32.02m approach span. The budget is RMB 23.422401 million yuan approved by Shaanxi Development and Reform Commission.

B. To rebuild the rural highways to villages: 11 independent constructions a. Tianpan Highway: the length is 25.76km and the roadbed is 6.5m wide and the road class is the fourth. The budget is RMB 19.7326 million yuan approved by Xi'an Transport Bureau. b. Highway to Hongxing Village: the length is 3.036km and the road class is the fourth. The budget is RMB 3.5848 million yuan approved by Xi'an Transport Bureau. c. Guanniu Highway: the length is 5.510km and the road class is the fourth. The budget is RMB 4.7431 million yuan approved by Xi'an Transport Bureau. d. Hetaoyuan Bridge: the total length is 158.81m consisting of 53.04m bridge and the bridge is 8m wide. The budget is RMB 1.6015 million yuan approved by Xi'an Transport Bureau. e. Tuishuiqu Bridge and other 6 small bridges in Caiyang Highway: the total length is 770.95m consisting of 243.76m bridges. The budget is RMB 7.132 million yuan approved by Xi'an Transport Bureau.

C. To rebuild town highways: 5 independent constructions a. Xiangong-Xiangquan-Maqiping Highway: the total length is 42.099km ( 16km third- class highway and 26.099 fourth-class highway). The budget is RMB 38.7869 million yuan approved by Xi'an Transport Bureau. The design speed is 20-30km/h. b. Didian-Lijiabu highway: the total length is 3.5km (second-class highway). The budget is RMB 12.2462 million yuan approved by Xi'an Transport Bureau. c. Jiacunzhen-Longxincun Highway: the total length is 6.535km (third-class highway). The budget is RMB 9.2036 million yuan approved by Xi'an Transport Bureau. d. Pingtou Weihe River Bridge: the total length is 141m consisting of 1068-meter approach span and the width is 12m. The budget is RMB 7.5548 million yuan approved by Xi'an Transport Bureau. e. Xiaochuan Weihe River Bridge: the total length is 125m consisting of 91.11-meter approach span and the width is 5.1m. The budget is RMB 2.6035 million yuan approved by Xi'an Transport Bureau.

1.3 Arrangement of the investment and implementation

21. The total investment of the traffic transport facilities in Chencang District supported by the ADB emergency loan is up to RMB 108 million yuan (consisting of the interest during the construction), and the loan will be used only in construction but not in land acquisition and relocation, the cost of which will be paid by the county (district) government and the government will try to apply the fund from the central government and the provincial government. The estimate cost of land acquisition and resettlement will be up to RMB 12.7161 million yuan. The project will begin in December 2010 and will finish by the end of 2011.

1.4 Economical and technological feasibility study and earlier stage work

22. The initial preparation of the Project has been carried out one after another. SDRC approved the reports on the feasibility studies respectively on February 11 2009 and April 29 2009. At present, except that the design of Shiyangmiao Qianhe River Bridge to pass the Baozhong Railway is being discussed with the railway administration, other designs have been finished and have been approved by Baoji Transport Bureau.

1.5 Potential adverse impacts

23. The post-disaster reconstruction supported by ADB's emergency loan in Chencang District will help the affected population to regain their normal life and production, to compensate their losses, and to propel the socioeconomic development. However, according to other implementations of similar project, we should pay attention to several problems especially in the project: the first is that the project fund should be paid in full amount and in time to guarantee the project's implementation. Second, we should guarantee the quality of various construction to avoid possible inconvenience and security problem for the later use. Third, we should handle all the possible problems during the constructing process and any unexpected situation, with the attitude of being open, just, transparent, consultative and consistent. And we should avoid any negative influence to the project caused by the policy deviation and the responsibility oversight.

1.6 Executing and implementing agencies

24. The executing agency of the Project is Leading Office of Chencang District Post- disaster Reconstruction, and the implementing agency is Chencang District Transport Bureau.

2. Scope of Project Impact

2.1 Principles and measures to reduce project impact

2.1.1 Principles

25. The basic principle of the project implementation is to reduce the affect of project impacts to the socioeconomic development and people's life as far as possible, and the preparation work of the project shows the principal. During the stage of survey and design, the project is discussed by local government and experts. The project will not decrease its technical standard and environment protection standard, and then, the location and direction of the project is decided according to the following principles: （）1 The design institute should design the project to occupy farmland as less as possible, taking advantage of barren hill, barren land and barren beach to minimize land acquisition. （）2 To avoid humane scenery (including temples for religious activities) and the key protection unit of cultural relics. (3) To avoid densely inhabited area to minimize affected persons. (4) To protect the existing water conservancy facilities. To resume the affected part by the project and to maintain the original irrigating system.

2.1.2 Measures

（）1 At the stage of feasibility study, when choosing the project place, we first decide key area and key place to avoid, and decide the project area taking construction, environment, resettlement into consideration. （）2 To have a fieldwork survey of the project area, to collect topography, landforms, cultural relics, mineral resource and economy development program, and to solicit local government and residents’ opinion of the position scope. (3) To have field measure of land acquisition and resettlement, survey of residents’ opinion and social economy. According to the relevant laws and policy of our country, to determine the compensation standard of affected land and resettlement, to survey the number of all kinds of land and building, and to survey land, farmland, population construction, economic condition, etc. (4) To collect detailed data of cultural relics in the affected area. (5) To negotiate with villages in the affected area and plan department, and to choose places to construct, and not to occupy the high-quality farmland. （）6 According to the results of the survey, to compute the total expenses of land acquisition and resettlement and the project (including the environmental protection fee).To have a joint meeting with three parties of engineering, environmental protection and resettlement, to consider local development program, government, and residents' opinions, to analyze and compare the survey result as follows. ------Comparison of construction investment ------The possibility of the labor force setting, the analysis of environment capacity in certain area ------The project affection to irrigation and domestic water, if it is easy to resume ------From the point of local economy develop potential, to analyse if it is easy to resume or raise the living level of local residents after land acquisition and to make sure the production and living level will not decrease after land acquisition ------The analysis and comparison of the construction benefit and social benefit of the project By comparing the above items, improving the plan, soliciting local residents' ideas, the final draft is decided.

In the stage of survey, the construction unit will make further survey on the implementation area to choose the best option and to minimize land acquisition. In the stage of implementation, the project owner and supervision engineers will check construction design of the construction unit to minimize land occupation and farmland damage; in the stage of resettlement, the resettlement unit will minimize fertile land occupation when they choose place for rebuild housing and other buildings.

2.2 Number and kinds of the project impact

26. According to the implementation plan of the project, in May of 2010, the implementation agency surveyed the affected number and kinds. The detail is in Table 1--- Table 5. However, the final number and kinds will be finalized according to the measure and check before implementation of land acquisition and resettlement. In case of significant changes in scope of project impact and compensation rates, the resettlement plan will be updated and submitted to ADB for concurrence before commencement of civil works.

2.2.1 Types of project impacts

（）1 5 kinds of occupied land： Irrigated land, orchard land, dry land, slope land, and housing land （）2 4 kinds of houses: Brick and concrete, brick and wood, earth and wood, simple (3) 8 kinds of attached facilities :Fruit trees, useful woods, young trees, nursery garden, greenhouse, enclosure, water closet, and tombs etc (4) 4 kinds of special facilities: Irrigating facilities, telecommunication facilities, and power facilities,

2.2.2 Building Demolition

27. The project needs to demolish 12,942.5 square meters of buildings, among which, brick and concrete building is 3,142 square meters, brick and wood building 8,419.5 square meters, mud and wood building 1,002 square meters, and simple building 379 square meters.

2.2.3 Land Acquisition

28. The Project will expropriate 141.73 mu of land area, including 36.2 mu irrigated land, 2 mu orchard, land, 77.64 dry land, 44.4 mu housing land, and 4.79 mu slope land.

2.2.4 Ground attachments

29. The affected ground attachments in this project contains: 52 fruit trees, 347 useful trees, 240 young trees, 1.9 mu nursery garden, 127.7 square meter greenhouse, 710 meter enclosure, 122 water closets, and 20 tombs.

2.2.5 Other facilities

30. Other affected facilities are: one well, 26 meters of channels, 16 electricity poles, 960 meters electricity wire, one transformer, 17 telecommunication poles, 1,000 meters telecommunication wire and 125 meters cable line.

2.2.6 Total number of affected persons

31. According to survey, during the project implementation, the Project will affect a total of 506 households or 2013 persons, in which 395 families or 1,553 persons will be affected

by land acquisition, accounting for 4.45% and 4.24% respectively of the number of families and persons of the affected villages. 111 families and 460 persons will be affected by housing demolishment, accounting for 1.25% and 1.25% respectively of the number of families and persons of the affected villages. See Table 1.

Table 1 Scope of Project Impacts

Person/family Young crop Subproject Affected Population Acquired Affected persons Houses village persons/ land (mu) / families by land demolished affected by loss house loss （）mu families acquisition （㎡） demolition

Shiyangmiao 3 5985/ 45.9 294/ 2645 91/ 34.2 Qianhe Bridge 1493 73 22 Lianwei Highway 1 2200/ 2.0 51/ Yinweiqu Bridge 510 12 Highway to 2 3290/ 11.64 158/ 118.5 9/ 11.40 Hongxing Village 795 39 2 Guangniu 2 4084/ 1013 8.49 110/ Highway 27 Didian-Lijiabu 3 7491/ 1793 22.6 256/ 8275 283/ 10.2 Highway 75 69 Jiacunzhen- 6 14117/ 49.6 661/ 1516 54/ 47.5 Longxincun 3396 164 13 Highway Pingtou Weihe 1 1480/ 1.5 23/5 388 23/5 Bridge 384 Total 17 36604/ 141.73 1553/ 12942.5 460/ 103.3 8874 395 111 Note: affected villages contain one village to be affected by two subprojects, so the total is 17 villages.

Table 2 Permanent Land Acquisition

Subproject Acquired land（mu）

total Irrigated Dry land Slope land Orchard Housing land land land

Shiyangmiao Qianhe Bridge 45.9 36.2 9.7

Lianwei Highway Yinweiqu 2 2 Bridge

Highway to Hongxing Village 11.64 6.85 4.79

Guangniu Highway 8.49 8.49

Didian-Lijiabu Highway 22.6 15 7.6

Jiacunzhen-Longxincun Highway 49.6 47.3 2.3

Pingtou Weihe Bridge 1.5 1.5 Total 141.73 36.2 77.64 4.79 2 21.1

Table 3 Building Demolition Subproject Demolished buildings（㎡）

total Brick and Brick and Wood and Simple concrete wood mud Shiyangmiao Qianhe Bridge 2645 2645 Lianwei Highway Yinweiqu Bridge Highway to Hongxing Village 118.5 118.5 Guangniu Highway Didian-Lijiabu Highway 8275 2546 4923 800 6 Jiacunzhen-Longxincun Highwa y 1516 208 733 202 373 Pingtou Weihe Bridge 388 388 total 12942.5 3142 8419.5 1002 379

Table 4 Ground Attachment

Subproject Fruit Other tree greenhouse Enclosures WC Nursery tomb wood grown young （㎡） (m) (mu) Shiyangmiao Qianhe Bridge 127.7 646 122 1.9 10 Lianwei Highway Yinweiqu 114 Bridge Highway to Hongxing Village 27 24 36 Guangniu Highway 80 Didian-Lijiabu Highwa y 21 261 9 540 94 10 Jiacunzhen-Longxincun Highway 31 53 13 134 28 Pingtou Weihe Bridge 6 total 52 347 240 127.7 710 122 1.9 20

Table 5 Special Facilities

Subproject Power Wire Telecommun- Cable well channel pipe pole （m） ication wire wire （m）（m）（m）（m） Shiyangmiao Qianhe Bridge 32 1850 1 Lianwei Highway Yinweiqu Bridge Highway to Hongxing Village 80 400 26 15 Guangniu Highway 5 Didian-Lijiabu Highway 47 9880 2010 13760 Jiacunzhen-Longxincun Highway 72 8270 440 4410 1 Pingtou Weihe Bridge Total 236 18150 2450 20420 2 26 15

2.3 Evaluation on project impact

32. According to the design draft and fieldwork survey, the land acquisition of the project will not affect local residents' farmland seriously. In the 17 affected villages, the farmland per capita before land acquisition is 1.1 mu, and the project will acquire 141.74 mu land, which accounts for 0.35% of the total 35,959 mu farmland. After land acquisition, the farmland per capita is 1.095 mu, which is 0.005 mu less than before land acquisition. According to the survey, the total income per capita of affected families in 2009 is RMB 5238 yuan. The

income from agricultural products (cash crops such as Chinese gooseberry, apricot, peach, and field crops such as wheat, corn and rapeseed) is only about RMB 1000 yuan. The annual income is shown in Table 6.

Table 6 Agricultural crop income in project area

Output Average price last Total Production Item Net income* (kg/mu) 3 years (RMB/kg) income cost wheat 600 1.1 660 400 260** corn 600 1.1 660 400 260** rapeseed 200 1.8 360 250 110 Chinese gooseberry 4000 1.0 4000 1400 2600 peach 3000 1.0 3000 1200 1800 apricot 2500 0.8 2000 900 1100 plum 2500 0.7 1750 800 950 cherry 400 6 2400 1000 1400 persimmon 2500 0.5 1250 400 850 nursery Per mu 3000 1000 2000 Annual output value Per mu 1320 of irrigated land *Returns to labor (i.e., labour cost is not deducted) **the project area is located in North continental monsoon temperate climate. The irrigating land can harvest wheat and corn once respectively every year. The net income per mu is RMB 520 yuan. The dry land is not suitable for corn and can harvest less wheat. So, the net income is less than RMB 480 yuan. The output of wheat in sloping land is only one half or one third of that in the irrigated land.

33. During the implementation of the project, 12942.5㎡ of buildings will be demolished, and 460 persons in 111 households will be affected by the demolition and need to be relocated, which account for 1.25% of the total 36,604 persons in 8874 households in the 16 affected villages. Because the rate of the affected persons and households is very low, after obtaining full compensation, the affected villagers will be relocated within their own villages and will construct their new houses by use of compensation. So, the affected villagers can be easily resettled.

3. SOCIOECONOMIC INFORMATION AND PROFILE

34. Foreign Loan Office of Shaanxi Province is in charge of the socioeconomic survey, supervision and preparing the plan of land acquisition, housing demolition and resident resettlement over the affected area of the Project. Chencang Transport Bureau, the implementation agency, along with project social development consultant experts, is in charge of all the work of the project baseline investigation, socioeconomic investigation, and the formulation of the plan of land acquisition, housing demolition and resettlement.

3.1 Introduction of earlier-stage Survey on the project

35. The earlier-stage survey on the project is carried out in two sections: From August 2008 to February 2009, when Chencang Transport Bureau were doing the feasibility study to this project, they carried on a preliminary socioeconomic survey of the affected area, and solicited the local government and some villagers' opinions in certain scope. In May of 2010, Chencang Transport Bureau, along with the consultant experts, had a total investigation on the socioeconomic condition of the project affected villages, and affected persons, land, houses and attached facilities. The investigation involves 36,604 persons in 8,874 households at 17 villages (of 5 towns) with a population of 36,604 persons in 8,874 households. After analyzing and processing the data and information under the surveys, the Bureau has compiled the “Land Acquisition, Relocation and Resettlement Plan under the Project of Post-disaster Reconstruction supported by ADB's Emergency loan in Chencang District.

36. The survey involves 8874 households in 17 villages of 5 towns in Chencang District Post-disaster Reconstruction of transport supported by ADB's emergency loan. The survey chooses 15 households in each village as sample households, accounting for 3% at of each village and 65% of the affected households. Concrete survey method adopts both collecting materials in room and visiting villages and families outside, both having an informal discussion and questionnaire survey. That is to say, we collect relevant characteristics, report form and drawing materials from project implementation bureau and other relevant bureaus. At the same time, we have an informal discussion with the project implementation area villagers, observe and survey on the spot, and fill out fixed tables. All these make the survey as aimed as possible.

37. The project impact survey and socio-economic survey mainly covered following items: （ⅰ）The project affected area socio-economic survey and survey of villagers’ living style, the main contents are as follows: a. administrative area, including the basic situation of county, city and province affected by the project b. Main economic index in 2006—2009 in the above affected area c. The impoverished population distribution in the above affected area d. The living condition of minority households, particularly and women and to check whether any minority groups are living in the above affected area e. the highway condition in the project affected area f. The information of the affected villages, including population, farmland, per capita income g. The information of the sample households, including the percentage of income from planting, breeding, sideline and industry h. The working construction and average property of the sample households i. The living condition, drinking water condition and life style at the affected village j. The affected individuals' attitude and opinion to the project, the compensation policy of land expropriation, housing demolition and resident relocation, and economic resume plan

（ⅱ） Land expropriation, housing demolition and resident relocation affection impact survey, the main contents are: a .The quantity of affected land expropriation, housing demolition and all kinds of special- purpose facilities, the number of affected individuals caused by the Project b .The quality, output per mu and output value of occupied farmland of the project c .The construction value and rebuilt value of demolishing buildings of the project d .The economical situation of the affected households e The economical situation of the affected villages and enterprises f .The duration to the land expropriation, housing demolition and resident relocation of the affected g .The opinions and attitude of the project given by people

3.2 Socioeconomic overview of project affected areas

3.2.1 Introduction of project affected areas

38. The Project area, Chencang District of Baoji City, locating in the west part of 800 Li (400 km long) Guanzhong Plain. It is 119km from east to west and 68km from south to north. The area is 2517 square kilometers and the farmland is 0.667 million mu. It is 140km from Xi'an, the capital of Shaanxi Province. There are 2235 villager group, 338 villages in 18 towns. At the end of 2009, the population in Chencang District is 0.6017 million in 0.153 million households, among which, 0.3116 million are male, 0.2891 million are female, and 15.2% live in town. The population density is 238 persons per square kilometers.

39. The ancient name of Chencang District is Xiguo, where Zhou and Qin culture originated. And the former name was Baoji County, and in March 1, 2003, it is called Chencang District of Baoji City according to the State Council's approval. Chencang District locates in the middle of the mainland of China, the west of Guanzhong Plain. It is middle latitude warm temperate and semi-moist area. The weather is mainland monsoon with an average annual temperate of 13oC. The good natural condition is good for crops, so Chencang District is the important base of grain, oil and other agricultural products.

40. Chencang District is also an important industrial base in northwest China, a transport hub, and regional business center. It is the important area for the new development of Baoji City. Longhai Railway covers from east to west, and Baocheng Railway and Baozhong Railway from south to north. National Highway 310 and Xibao Expressway cover the district, and Baoji-Tianshui Expressway has been finished. The transport here is so excellent. With the development of Chencang Physical Distribution Zone, one of the three largest physical distribution zones in Shaanxi, and “Guanzhong-Tianshui” Economic Area, Chencang District will be developing better and faster.

41. In 2009, the GDP of Chencang District is more than RMB 10 billion yuan, up to RMB 10.16 billion yuan, increasing by 15.5%. GDP per capita is 16900 yuan, increasing by 16.0%. The disposable income per capita of town people is 16371 yuan, increasing by 25.9%. Net income per capita of farmers is 4904 yuan, increasing by 19.6%. Chencang is The Best Ten County (District) in Socioeconomic Development of Shaanxi Province for 3 times, the only one in Baoji City.

3.2.2 Investigation data of affected villages

(1) Population of affected villages

42. There are 17 villages in 5 towns in the project area of Chencang District Post-disaster

Reconstruction Traffic Project Supported by ADB's Emergency Loan. The population is 36604 in 8874 households, among which, 18771 persons are male and 17833 are female, and the rate is 1: 0.95. The population per household is 4.12. There are 5168 children, 7324 persons older than 60, and 24112 adults. The portion in the total population is 14.12%, 20.01%, and 65.87% respectively.

43. According to the sample investigation data, about 20.08% of the total population, 7350 persons received elementary education. 50.14%, 18353 persons received junior middle school education. 11.02%, 4034 persons received senior middle school education. 9.89%, 3620 persons received no education at all.

(2) Socioeconomic condition

44. According to household survey, by the end of 2009, there are no village enterprises or individual enterprises in 17 affected villages in the project area. Villagers' income is from agriculture, part-time job and household aquaculture and animal husbandry. At present, more than 11,000 persons (46% of the labor force) get part-time jobs mainly in Xi'an, and the part- time job income accounts for 49% of the total household income. 185 families undertake transportation for passengers and to transport agricultural products. All other people only undertake agricultural work. There are 39,959 mu farmland in the affected villages and the farmland per capita is 1.09 mu. They plant crops such as wheat, corn, bean and rapeseed, and economical crop such as gooseberry, peach and apricot. Some housewives manage household animal husbandry such as chicken, pig and cow. In 2009, the per capita income in 17 affected villages was 5,238 yuan. See details in Table 7.

Table 7 Socioeconomic data of the affected area county Villagers committee household Rural Poor Farmland Net income Total income of /district Population (person/househ (mu) per capita village old) Chencang District 338 153000 510241 39736/15812 667000 4904 2,502,221,864

Qianhe Town Sanxing Village 645 2572 195/61 2010 5770 14,840,440 Huanghe Village 574 2385 161/52 2606 6100 14,548,500 Lijiabu Village 510 2043 139/44 1431 7250 14,811,750 Sijiaya Village 409 1557 116/35 1707 5960 9,279,720 Weijiaya Village 510 2200 156/47 2274 6100 13,420,000 Didian Village 638 2876 158/49 1146 8400 24,158,400 subtotal 6 3286 13633 925/288 11174 6679 91,058,810 Diaowei Town Dongyang Village 365 1510 122/35 963 5497 8,300,470 Hongxing Village 430 1780 131/40 2380 5620 10,003,600 subtotal 2 795 3290 253/75 3343 5564 18,304,070 Jiacun Town Futuo Village 476 1789 172/48 2344 4323 7,733,847 Jia Village 876 3643 307/88 4130 4456 16,233,208 Hongxin Village 129 486 48/14 1005 3630 1,764,180 Guangfu Village 884 3598 313/87 4845 4443 15,985,914 Longxin Village 389 1568 118/37 2178 4328 6,786,304 Wenjiu Village 476 1735 152/46 2143 4288 7,439,680 Dujiaao Village 499 2062 167/49 2456 4325 8,918,150 subtotal 7 3729 14881 1277/369 19101 4359 64,861,283 Qiao Town Xinhua Village 680 3320 227/71 4400 3781 12,552,920 Pingtou Town Pingtou Village 384 1480 129/39 1941 3360 4,972,800 subtotal 17 8874 36604 2811/842 39959 5238 191,749,860

(3) Investigation data of the sample households

45. In the project area, 15 households in each village are chosen as sample households, accounting for 3% of the total households, and the total sample households are 255. The data are in Table 8. Table 8 Basic data of the 255 affected sample households

item Affected 255 households time End of 2007 End of 2008 End of 2009 population 1097 Labor force 713 Agricultural population 1097 Farmland per capita （） mu 1.09 Annual average net income 5116 (yuan) Farmland per household 4.69 2006 2007 2008 Yearly output value per mu 989 1008 1014 Average planting 4653 22049 4776 20725 4808 22410 net income poultry 5267 4494 4202 per sideline 12089 11455 13400 household Average Production cost 6253 20858 5500 23420 6750 24165 cost Life cost 14609 17920 17415 Housing per capita 25 Production Machinery 2 (ten thousand yuan） Life apparatus 1.5(ten thousand yuan）

Note: the planting income contains income from orchard.

46. According to the investigation, the average income per household is 22,410 yuan a year for the 255 sample households in the 17 project affected villages, and income per capita is 5,211 yuan, which is a bit lower than 5238 yuan for that of the 17 villages. The farmland output value contains irrigated land, dry land and slope land average annual output value. The average annual value is 1005 yuan from 2006 to 2009. The above two figures are a little bit different from that of the village, for example, 2.3% different for the income per capita. The reason may be the villagers' expectation, and so on. However, the data are nearly the same. (see Table 7 and Table 8)

3.2.3 Data analysis

47. The investigation data from the 17 villages in 5 towns of Chencang District, the project area, show that the life standard in the affected villages is a bit higher than that of the country, Shaanxi Province, and that of Chencang District. Table 9 shows that the life standard of the affected villages in affected area in Chencang District is 1.65%, 50.08% and 6.8% higher respectively. In 2009, the income per capita in the project affected villages is 5238 yuan (USD 781). The main income source is planting, poultry, and part-time job.

Table 9 Comparison of income between affected area and other places in 2009

Item country Shaanxi Chencang Disposable income for town people 17175 14600 16371 Rate compared with （） % 100 85 95.3 Net income for rural people 5153 3500 4904 Rate compared with （） % 100 67.9 95.2 48. “512” Wenchuan Earthquake damaged Chencang’s socioeconomic development greatly. The economic losses are 973 million yuan. Especially, the damage of highways, bridges, landslide brought great trouble for the local people's life and production. This is the greatest natural disaster from which Chencang suffered from the foundation of PRC in 1949, so the State Council made Chencang District as one of the 41 counties (districts) which suffered most from the great earthquake.

3.3 Poverty

49. By the end of 2009, the minimum living population is 39736 persons in 15812 households, accounting for 12.21% of the total rural households and 7.8% of the total rural population in Chencang District. There are 2811 persons in 842 households in the 17 affected villages, accounting for 9.6% of the total affected households and 7.7% of the total affected population. The main reasons for being poor are: a. the main labor of the family is weak or ill, b. lack of labor (working age adults), and c. high expense on the sick.

3.4 Minorities

50. There are no minorities living in the area, and all residents speak Chinese.

4. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

4.1 Information Disclosure and Consultation

51. As a vital social activity for land acquisition, resettlement and compensation, information and consultation should be well-prepared with the aim to make every affected individual acquainted with the significance, processes, appropriation, compensation, appeal and the way of settlement and problems existing in the project construction. Therefore, consultation shall be carried on before hand.

（）i The information and consultation process is as follows: Land acquisition, resettlement and compensation shall be carried out by two methods: first, social medium; second, correspondent management mechanism. a. Make good use of newspaper, radio. TV, and bulletin in order to get understanding and support from every aspects of the society. b. The project administration office consultation to affected individuals in forms of meeting, document, notice, and so on, before the project begins. （）ii The contents of the information and consultation a. To explain the significance of the construction and timing of the project. b. To explain the principles and procedures of land acquisition, housing demolition and resident resettlement in RAP, and plan and measures of economic rehabilitation. c. To explain all levels of project administration and their duty scope. d. To explain compensation standard of land acquisition, housing, other property and all kinds of specialized facilities. e. To explain the distribution and usage of compensation fund. f. To explain the way of submitting a grievance claim during the land acquisition, housing demolition and resident resettlement compensation. g. To explain the duty and jurisdiction of claim accepting agency at all different levels, and inform the affected individuals or enterprises how to protect their own benefits and right through legal way. h. To explain internal supervision agency and external monitor and their activity contents in the compensation work. i. The information of land acquisition, housing demolition and resident resettlement must be explained to women, the disabled and other vulnerable groups By above mentioned activities, make all the affected individuals aware of impacts and their entitlements so they are more willing to accept and support the project. (iii) Timing of information disclosure and consultation

. The project resettlement policy and compensation rates were disclosed in May-June 2010 through meetings with affected villages. After the revised RP (the first draft) was finished in August 2010, the draft RP was printed and distributed to affected district project office. At the same time, the information handbook of land acquisition, housing demolition and resident resettlement was distributed too all the affected villagers.

4.2 Public participation

52. Besides efficient information and consultation, people’s governments at all levels and representatives of affected individuals will be invited to take part in the Project implementation. They will know the whole process of land acquisition, housing demolition and resident resettlement compensation. They can monitor whether all the work is undertaken in line with RP terms and ensure that the benefit of affected individuals is well considered.

53. In terms of holding meetings or soliciting individuals’ opinions, the project implementation agency has already solicited opinions and suggestions from (a) the

governments at all levels along the project construction line, (b) the representatives of affected units in the stage of design and preparation, and (c) affected villagers. They take the following activities in the process of land acquisition, housing demolition and resident resettlement. a. Survey and design stages:(have done) ------Comparison of project implementation draft ------Sorting and measuring of affected land and housing ------The survey and check of trees, wells, enclosures, etc. ------The survey and check of irrigation, electricity, communication and other facilities b. Implementation stage: ------Sorting the compensation scope and definition of compensation standard ------Sign of compensation agreement ------Choosing new relocation spot and building the new houses ------Redistribution of land ------Rehabilitation plan (by use of compensation funds) ------Resettlement of affected persons and enterprises ------Survey and coordination of grievance claim and appeal measures ------Monitoring and evaluation of resettlement implementation and results.

4.3 Village Meetings

54. The contents of village meetings are about all the aspects such as target, scope, policy of land acquisition, housing demolition and resident resettlement, compensation standard, payment way, executive agency, implementation plan and so on.

55. Each affected village has held the village meetings from May to June 2010, which invited the leaders of the village, the representatives of affected individuals, the representatives of the poor to take part in, discussing the policy of resident resettlement, the implementation plan, etc. The minutes of village meetings indicate that local communities and villagers strongly support the construction of the Project, and agree the compensation rates provided in the resettlement plan.

56. The responsible agency of village meetings is the land administration bureau at all levels, with close coordination with the village committee. Once the project implementation begins, the key persons in charge of resettlement administration at all levels, office address and telephone contact numbers should be announced in the affected areas.

5. GRIEVANCE REDRESS MECHANISMS

57. In order to protect the affected individual's interest, if anyone feels dissatisfied about the allocation work, he or she may make complaint and appeal to the project offices at correspondent levels. Further, he or she may take judicial proceedings to the People's Court of county or municipal level.

5.1 Agencies handling complaints and appeals

58. Agencies transacting complaints and appeals are: the post-disaster reconstruction leading offices at correspondent levels, People's Government of the town and the villagers' Committee.

59. The appeal transaction agencies are People's Court of the County and the Municipal Intermediate People's Court. The appeal transaction agencies and procedures are listed as follows:

Table 9 Appeal and lawsuit agencies and procedure

City’s Intermediate People’s Court

District County People’s Court

Provincial Post-disaster Reconstruction Leading Office

District Project Office

Affected Villagers’ Committee individuals

5.2 Scope of complaints and claims

（iComplaint caused by land ,housing and other facilities compensation. （i Complaint caused by unsuitable dealing in the process of demolition or forcing the price down on purpose. ) Complaint that the compensation standard is too low Complaint that the project construction damages others’ benefit. () Complaint that the staff damage the affected enterprises or individuals’ interest or damage others benefit. （）Complaint that the affected individuals think the compensation standard is lower than the replacement value.

5.3 Appeal procedures

(If the resident complains about land acquisition, housing demolition and resident resettlement work, first, they can tell it to the village committee in written form or orally, and ask for a solution or response. If the problem cannot be solved, the county (district) project office should coordinate and resolve. If the resident doesn't receive any response in three weeks or is not satisfied, he/she can claim to the project management office at higher level in written form. The project management office at upper level should solve in three weeks after receiving claims from the affected individuals. If the problem is not solved in three weeks or the affected individuals are not satisfied, they can make a lawsuit to county (district) people’s court according to legal procedure. If the affected individuals are not satisfied with the judgment made by county(district ) people’s court, they can appeal to the city intermediate people’s court. The judgment made by the intermediate people's court is final; the affected individuals must obey the judgment.

5.4 ADB Accountability Mechanism

60. If two or more households still think they have suffered direct, material and adverse harm and believe it stemmed from ADB's lack of compliance with its policy and/or this RP, they may submit a request to ADB following procedures set out in ADB's Accountability Mechanism1.

1 http://www.adb.org/Accountability-Mechanism/

6. LEGAL FRAMEWORK

6.1 National Laws and Regulations Concerning Acquisition and Relocation

61. In accordance with the following legal documents, the construction unit is entitled to the land acquired upon compensating the affected units and people.

(1) The Land Administration Law of the People's Republic of China . Adopted at the Sixteen Session of the Standing Committee of the Sixth National People's Congress on June 25, 1986; amended in the light of the Decision of The Fifth Session of the Standing Committee of the Seventh National People's Congress on Amending the Land Administration Law of the People's Republic of China on December 29,1988, and amended at the Fourth Session of the Standing Committee of the Ninth National People's Congress on August 29,1998; and effective as of January 1,2004. Main contents: formulations on land ownership, land using overall plan, farmland protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and relocation way of relocated people. ( 2) Regulations on the Implementation of the Land Administration Law of the People's Republic of China (No.256 Decree of the State Council of The People's Republic of China on December 27,1998) Main contents: in the light of the Land Administration Law of the People's Republic of China, formulates concrete implementation ways. (3) Regulations on the Protection of Basic Farmland (No.257 Decree of the State Council of The People's Republic of China on December 27,1998) Main contents: in line with Agriculture Law of the People's Republic of China and the Land Administration Law of the People's Republic of China, concrete formulations for the country's protection of basic farmland, including delimitation, protection, supervision and management, legal responsibility, and so on. (4) Interim Regulations of Farmland Use Tax of the People's Republic of China (No. 27 Document of the State Council on April 1,1987) Main contents: formulations about tax contribution standard and contribution range of state construction occupied farmland. (5) Regulations on the Implementation of the Land Administration Law of the People's Republic of China of Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People's Congress on November 30, 1999, and effective on January 1, 2000) Main contents: in line with the Land Administration Law of the People's Republic of China, Regulations on the Implementation of the Land Administration Law of the People's Republic of China, the reality of Shaanxi Province, concrete formulations.

(6) Detailed Implementation Regulations on Regulations on the Protection of Basic Farmland of Shaanxi Province (No. 30 Decree of the People's Government of Shaanxi Province on April 4, 1996) Main contents: in line with the Land Administration Law of the People's Republic of China, Regulations on the Protection of Basic Farmland by the State Council, relevant laws and regulations, and the reality in Shaanxi Province, concrete formulations on the protection of the basic farmland in Shaanxi Province. (7) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28) Main contents: In order to use the land properly, to protect the legal rights of the peasants whose land is expropriated, to maintain social stability, and to perfect the land

expropriation and resident relocation system, the decision puts forward the guide principle and way to perfect the compensation of land expropriation. The decision asks all the county, city and province governments to take useful measures to make sure that the peasants' living standard will not decrease after their land is expropriated, and that according to laws in force, the land compensation, relocation compensation, ground attachment and young crop compensation are paid in full and in time. If according to laws in force , after the payment of land compensation and relocation compensation, the peasants whose land is expropriated cannot maintain the original living standard , and their social security can not be paid , the province , autonomous region and municipality government should agree to add relocation compensation. If the sum of land compensation and relocation compensation reaches the legal upper limit, but the peasants whose is expropriated couldn't remain the living standard as before, the local people's government can subsidy with the state-owned land income. The government of province, autonomous region and municipality should work out and promulgate the standard of output value or price of land. The land expropriation should be the same land the some price. The national key construction project should take the expense of land expropriation into its budget. (8) Notice on Printing the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People's Republic of China (Nov. 3, 2004, Guotuzifa [2004] No. 238) The main contents: to put forward how to carry through 《The Decision of the State Council on Deepening the Reform and Strictly Enforcing Land Administration》 especially aiming at some problems during the land expropriation compensation and relocation system. There are two aspects: A. To formulate unified annual output value standard. The provincial land and resources administration along with relevant agencies woks out the lowest unified annual output value of every county in the province, then announce and carry out it after the approval of the province government. The workout of unified annual output value standard should consider the type and quality of expropriated land, the investment on the land, the price of agricultural products, the grade of land, and so on. B. The affirmation of unified annual output value times. The unified annual output value times of land compensation and resettlement subsidy should ensure the peasants whose land is expropriated remain a standard no lower than before and be worked out within the legal limit. According to the legal unified annual output value times, if the land compensation and resettlement subsidy couldn't ensure the peasants whose land is expropriated couldn't remain the original living level and couldn't pay for their social security, the times can be increased after the approval of province government. If the sum of land compensation and resettlement subsidy is 30 times as the unified annual output value, the peasants whose land is expropriated couldn't remain the original living standard, the local government can subsidy from the state-owned land income. If the basic farmland is expropriated by the legal approval, the land compensation should be carried out according to the highest compensation standard announced by the local government.

6.2 ADB's Policy on Involuntary Resettlement

62. For its supported construction project, ADB formulates its policy--- ADB's Policy on Involuntary Resettlement (1995). Its main contents are same as our country's relevant laws and regulations, and only a few items are different.

63. Involuntary resettlement should be an important consideration in project identification. For any project that requires relocating people, resettlement should be an integral part of project design and should be dealt with from the earliest stages of the project cycle, taking into account the following basic principles: （）1 Involuntary resettlement should be avoided where feasible.

（）2 Where population displacement is unavoidable, it should be minimized by exploring all viable project options. (3) If individuals or a community must lose their land, means of livelihood, social support systems, or way of life in order that a project might proceed, they should be compensated and assisted so that their economic and social future will generally be at least as favorable with the project as without it. Appropriate land, housing, infrastructure, and other compensation, comparable to the without project situation, should be provided to the adversely affected population, including indigenous groups, ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources taken for the project. (4)Any involuntary resettlement should, as far as possible, be conceived and executed as a part of a development project or program and resettlement plans should be prepared with appropriate time-bound actions and budgets. Resettlers should be provided sufficient resources and opportunities to reestablish their homes and livelihoods as soon as possible (5)The affected people should be fully informed and closely consulted on resettlement and compensation options. Where adversely affected people are particularly vulnerable, resettlement and compensation decisions should be preceded by a social preparation phase to build up the capacity of the vulnerable people to deal with the issues. （）6 Appropriate patterns of social organization should be promoted, and existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible. Resettlers should be integrated economically and socially into host communities so that adverse impacts on host communities are minimized. One of the effective ways of achieving this integration may be by extending development benefits to host communities. (7)The absence of formal legal title to land by some affected groups should not be a bar to compensation. Affected persons entitled to compensation and rehabilitation should be identified and recorded as early as possible, preferably at the project identification stage, in order to prevent an influx of illegal encroachers, squatters, and other nonresidents who wish to take advantage of such benefits. (8) Particular attention should be paid to the needs of the poorest affected persons including those without legal title to assets, female-headed households and other vulnerable groups, such as indigenous peoples, and appropriate assistance provided to help them improve their status.

64. The ADB Policy on Involuntary Resettlement set out principles: the following are relevant for this Project: Where population displacement is unavoidable, a detailed resettlement plan with time-bound actions specified and a budget are required. Resettlement plans should be built around a development strategy; and compensation, resettlement, and rehabilitation packages should be designed to generally improve or at least restore the social and economic base of those to be relocated. Monetary compensation for land alone may not be adequate. Voluntary relocation by some affected persons may form part of a resettlement plan, but measures to address the special circumstances of involuntary resettlers should also be included. Preference should be given to resettlement of people dislocated from agricultural settings unto similar settings. This is particularly important for indigenous peoples whose degree of acculturation to mainstream society is limited. If suitable land is unavailable, other strategies built around opportunities for wage employment or self-employment may be used.

65. There are regulations about the implementation and monitoring of resettlement, the loan party (EA) should report to ADB about the progress of resettlement during the project implementation; and in charge of the monitoring and evaluating of resettlement; ADB will supervise the implementation of re settlement in order to make sure if the implementation matches the resettlement plan.

66. This RP has been prepared based on ADB's Policy on Involuntary Resettlement

(1995) and the Resettlement Framework approved by the EA and ADB prior to project appraisal in early 2009.

7. ENTITLEMENTS, COMPENSATION AND BENEFITS

7.1 Policy and Principles

67. To protect relocated people's legal rights and to guarantee relocated quality of the relocated people are both our country's relevant policy and laws and ADB's resettlement policy for the relocated people. The implementation of this project inevitably needs some land expropriation, building demolition and resident relocation. In accordance with legal regulations concerning land acquisition and relocation by the national and local governments and guiding principles of ADB concerning relocation and resettlement, and especially in order to carry out the construction of the Project, the Project shall be implemented in adherence to improving or not lowering the production conditions and living standard of the affected people. The affected residents are entitled to get compensations from the implementation party that should help the affected residents to resume or improve the level of their income and life.

68. In conformity to the above principles, the Foreign Loan Office of Shaanxi Province, the executing agencies, and Chencang District Transport Bureau, the implementing unit, together with Shaanxi Provincial Department of Land Resources and other related departments, draw out relative policies and measures in respect of the Project. The standard of output value of Shaanxi Province is being formulated. When the draft is formulated, it needs to be witnessed and revised, and then can be put in practice after the approval of the Shaanxi Provincial Government. Therefore, in accordance with the reality in Shaanxi Province, the project will base on the spirit and demand of Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28) and Notice on Printing the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People's Republic of China (Nov. 3, 2004, Guotuzifa [2004] No. 238) and work out the plan of compensation. If the new policy of Shaanxi Province is put in practice, the project will be based on it.

69. In order to do the land expropriation, building demolition and resident relocation compensation well, the Project will apply the following principles. （）1 To make sure the affected individual people can raise, or at least resume, their original production and living level in the shortest time. （）2 The compensation of land acquisition, temporarily occupied land, young crops, attached facilities and affected houses should be formulated based on replacement value and considering the affected persons’ opinions. （）3 Any damage of villagers’ life and production caused by construction should be paid according to the damage level. The compensation should restore or improve their original life and production level. (4) The farmers who lose their land can get land again by land redistribution at their own village in line with the per capita land. The village redistributes land to every household according to the term “when the country's basic construction needs to expropriate land, to redistribute land according to relevant regulations”. If there is not enough land in their own village, other land can be given to them in the same town or county, but, the land cannot be more than 3000m from their own house. (5）Anyone who lose his house should get a new one, the resettlement site should be around the original site, no more than 1,000 meters at most. The new houses should be built by villagers themselves. However, if there are any difficulties, the local government or village committee should help them. （）6 The compensation of all the affected houses and other facilities should be calculated according to the latest price, and without any depreciation.

(7) Land expropriation, building demolition and resident relocation compensation should be completed at least one month before the project construction begins. Otherwise, the project cannot begin. (8) In line with the principle of guaranteeing the country's construction land and saving farm land at most, don't occupy farm land as far as possible if deserted land or hillside fields are available. (9) If the land doesn't change its ownership (the land occupied by village public facilities, villager sanitation, potable water facilities), the land will not be expropriated and no compensation will be paid by the government. However, affected households should be compensated in cash or in kind (e.g. land adjustment), by the village collective.

7.2 Compensation Standards

7.2.1 House Compensation

70. Compensation shall be made in accordance with the actual condition of the demolished houses, regardless of their ownerships, in order to ensure that the demolished households can obtain the houses of the same structure and areas as their demolished ones stipulated in this RP. According to the guide for house relocation settlement and the structure and type of houses, the people affected by house demolition shall be compensated directly, and their previous houses shall not be depreciated; besides, the affected residents are entitled to the construction materials of their previous house.

71. For villagers who lose their houses, the village and township government shall allocate land bases for them to build houses by themselves with the assistance of compensation fees and house removal fees; or they can ask the village and township government to build the house. No matter which way of rebuilding is adopted, the house cannot be demolished until the demolished households have removed to their new houses.

72. In accordance with the assessment and approval of the real estate management bureaus of the county or the city, the compensation standard is as shown in Table 10 below.

Table 10: Rural Housing Compensation Standards

Type Brick and Brick and Earth and Wood Simple (m2) Concrete (m2) Wood (m2) (m2) Unit: RMB/m2 Standard 500 450 300 120 Note: if any item is not included in the table, the compensation will be paid after the evaluation from housing administration above district level.

7.2.2 Land Compensation Standard

73. Standard for land compensation fee and resettlement subsidy – In line with the spirit and requirement of the Decision on Furthering Reform of Land Management of the State Council and the Notice on Printing the Suggestions for Completing Compensation and Relocation System of Land Expropriation (Guotuzifa [2004] No. 238) released by the Ministry of Land and Resources: land compensation fee and resettlement subsidy shall be calculated according to the legal maximum range of the summation of both land compensation fee and relocation subsidy, namely, totally ranging from 16 to 30 times of the average output of the land within the project area in the first three years since the land is expropriated. For this area, it is proposed to use the minimum standard of 16 times. The young crops

compensation shall be calculated according to the maximum of 40% to 90% of the average output of the land with damaged young crops in the first three years. Compensation for orchard, residential base and barren land shall be calculated according to the Implementation of ‘Land Administration Law of the Peoples Republic of China' of Shaanxi Province: compensation for farmland shall be made according to four to six times of the average annual output of the medium-sized arable land in the local county (city or district) with expropriated land in the first three years; land compensation for other lands shall be calculated according to one to four times of the average annual output of the medium-sized arable land in the local county (city or district) with expropriated land in the first three years; compensation for orchard shall be calculated according to six times of the legal maximum of the average output of dry land within the project area in the local county (city or district) with expropriated land in the first three years; compensation for residential base shall be calculated according to four times of the average output of the dry land within the project area, whereas compensation for barren land shall be calculated according to one time of the figure. Shaanxi Provincial Development and Reform Committee, Shaanxi Foreign Loan Office, Shaanxi Provincial Department of Land Resources and Shaanxi Provincial Bureau of Statistics jointly enact the compensation standard of the Project (see Table 11).

Table 11 Land Compensation Standard Type Irrigated Land Orchard Dry Farmland Housing Land Slope Land Unit: RMB/mu Standard 20,000 6,000 16,000 6,000 13,000 In which: 6,800 6,000 6,000 6,000 5,000 Land compensation Resettlement 13,200 - 10,000 - 8,000 Subsidy Note: Land compensation and resettlement subsidy are estimated together，housing land and uncultivated farmland does not include resettlement subsidy.

Table 12 AAOV of the Affected Areas (based on the average of the three years from 2007-2009) Type Irrigated land Orchard Dry land Housing land Slope land Unit: RMB/mu AAOV 1,320 1000 1000 The same as dry 800 land standard 74. According to Article 47 of Land Administration of the People’s Republic of China and the relevant regulations released by Shaanxi Provincial People's Government, the formula for calculating the compensation fee for arable land is as follows: Q1=A•a (e.g.: irrigable land 20,000 = 1,320 × 16) Among which: Q1 = land compensation fee A = average output of the land in the first three years since the land is expropriated a = combined multiple of land compensation fee and relocation subsidy=16

7.2..3 Compensation for young crops

75. Compensation for young crops is calculated according to 90% of the average annual output of the land before expropriation in the first three years. The standard is RMB 1000 yuan per mu.

7.2.4 Other Affected Facilities

76. After the assessment of the relevant authorities, compensation fee for the affected auxiliary facilities shall be fulfilled according to alternative prices of the facilities. See Table 13 below for the compensation standard.

Table 13 Affiliated Facilities Compensation Standard

Grown Young Grown Young greenhouse Wall WC tomb nursery fruit tree fruit tree tree tree (m2) (m)

80-120 5 30-40 5-10 80-120 60-150 80-200 800-1200 2500-3000

77. All specialized facilities, including facilities for hydraulic work, power and communication, as well as yards, pools and vault storeroom, shall be compensated according to relevant regulations of Shaanxi Provincial People’s Government and their real construction cost or alternative value.

7.2.5 Evaluation of the Compensation Standard

78. According to the spirit and requirement of the Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28) and the Notice on Suggestions for Completing Compensation and Relocation System of Land Expropriation (Guotuzifa [2004] No. 238) released by the Ministry of Land and Resources, the compensation standards for houses, affected land and young crops of this Project are proposed by Baoji Chencang District Post-disaster Reconstruction Transport Project Office, namely the implementing agency, together with administration of land and resources, and administration of statistics, in the light of the social and economic development strength and features within the Project area of Shaanxi province, incorporating the part of suggestions put forward by every districts when they enact the uniform standard for annual output. Therefore, these standards have been increased in some degree compared with the previous ones. The compensation standard for land and young crops of the Project has been stipulated with incorporation of the suggestions of the local government and residents, so it is rated highly by the local government and residents according to the feedbacks.

7.2.6 Payment of Compensation Fee

79. Compensation fee for land expropriation takes a part in the total investment of the Project, thus it has already been considered in the budgetary estimation. All the compensation fees are allocated by Shaanxi Foreign Loan Office; they shall be given to the affected collectives and people, and no one shall intercept or embezzle them. The land expropriator shall sign contract with the previous owner of the expropriated land; the compensation fee shall be drawn with the signature of the payee; and all the materials shall be kept in archives.

80. Land compensation fee belongs to rural collective economic group, thus it shall be given directly to the village committee in a bid to develop production and restore the economic strength of the affected people. The affected people are entitled to discuss and participate in the economic restoration plan.

81. Compensation fee for house, specialized facilities and auxiliary facilities, as well as young crops shall be directly paid to the entitled people.

7.2.7 Temporary occupied land

82. Temporary occupied land is the occupied road, material ground, construction ground occupied by construction unit during the project construction. The compensation of temporary occupied land is the average annual output value of the occupied land times the occupied years. When returned, the land should to be restored to the original state by the contractors, or paying some fee to the farmers for recovering it.

83. The topsoil of the occupied land should be stored until the occupied land is due. Then the construction unit should renovate the land to the state that the land so it can be planted, and then return it to the state that the land can be planted, and then return it to the affected individuals.

84. About temporary occupied land, there is only compensation, but no resettlement or permanent impacts. The compensation standard is RMB 1000 yuan per year.

7.2.8 House Relocation and Transition Subsidies

(i)The affected people shall be paid the house relocation and transition subsidies in addition to the house compensation fee according to the standards, including temporary transition fees and house removal fee . A． The standard of temporary transition fee a. RMB 500 yuan every month each family for residents. b. the compensation for the individual business owners, to pay according to the total profit recorded by the taxation administration. c. if the implementation agency provides the transition house or the old house is demolished after the new house is ready, no transition fee will be paid. The payment time is no longer than the production rehabilitation time. B. The house removal fee RMB 500 yuan for each household or individual business owner. If the implementation agency provides vehicles for removing, no removal fee will be paid. (ii) The transition period is no longer than the production rehabilitation time.

7.2.9 Compensation scope of land acquisition and resettlement

85. The Project will utilize 141.73 mu of land, so 1553 villagers from 395 households at 17 villages of 5 towns in Chencang District will be affected by land acquisition. The 17 affected villages will redistribute the land , so all the affected villagers will get similar land. The project will demolish 12942.5 m2 building, which will affect 460 persons from 111 households. The affected villages will redistribute housing land for them to relocate nearby free of charge. The total compensation fee for land acquisition and resettlement of the project is estimated to be RMB 14.0068 million yuan.

7.3 Payment and monitoring of village-level land compensation

86. The construction unit will pay land compensation and resettlement subsidy of the project construction through administrative procedures. According to the formulations of 《》The Land Administration Law of the People’s Republic of China , the land compensation is paid to the land owners or land users, and resettlement subsidy is paid to help settle down the rural residents after the land expropriation. So, the land compensation should be arranged and spent by the village committee; and the resettlement subsidy is arranged and spent by people who help settle down the rural residents. Given the readjustment approach

will be adopted within the affected village, the affected household will receive new lands from the village collective. Therefore, both the land compensation and resettlement subsidy will be paid to the village collective and used for community purposes. The transfer, usage management and monitoring of village-level land compensation and resettlement subsidy will be undertaken as per following procedure:

7.3.1 Inspection and preparation before transferring the fund

87. According to society survey data, the affected village should hand in the results of the detailed affected situation measurement survey to higher level Resettlement Arrangement Office for inspection.

88. District project office and independent monitor, and local government in affected villages should train village-level management department, and guide them to work out a development program which is suitable for the local reality and using plan of resettlement fund, according to local social economy development reality and prospect.

89. Relevant departments should guide, inform, consult and negotiate with APs and the village-level management to work out the utilization plan of village-level fund and report it to county-level project office for inspection.

90. District-level Resettlement Arrangement Office inspects and gives guidance to perfect the utilization plan of the village-level fund. If the using plan of fund is not available, the fund will not be transferred.

7.3.2 Management and monitoring of fund utilization

91. District-level Resettlement Arrangement Office inspects and confirms the utilization plan of village-level resettlement fund, and then transfers compensation and resettlement fund according to the village bank account.

92. Village committee will report utilization situation of compensation and resettlement fund to town and district Resettlement Arrangement Office every month. And county-level Resettlement Arrangement Office reports to the municipal Resettlement Arrangement Office every three months.

93. Besides monitoring fund utilization situation of village-level through report forms, district project office should inspect on site the development of agriculture infrastructure or enterprises which use compensation or resettlement fund.

94. Independent monitor will verify the utilization situation of compensation and resettlement fund of village-level units, evaluate the using effect of fund, offer advice to village-level units, and provide feedback monitoring to all-level project offices. Investigations will include sampling survey, site inspection, and discussions with affected individuals.

7.3.3 Auditing

95. The project implementation agencies will be audited by auditing authorities according to our country's policies. The main content of auditing is land expropriation, housing demolition and resident relocation fund.

8. HOUSE RELOCATION AND INCOME RESTORATION

96. The objective of the resettlement and rehabilitation plan is to guarantee the affected houses/infrastructures can be restored, the affected laborers can find job again, and the affected persons' incomes and living conditions can be improved or at least as well-off as they would have been in the absence of the project. According to this target, the most important economic rehabilitation measures is to redistribute land fairly, to work out fair distribution plan of the contracted land, and other economy economic resume restoration measures.

8.1 Rehabilitation Planning Principles

(1) For the occupied land for construction, the project implementing agency should compensate according to the laws. （）2 The construction unit should compensate according to replacement cost of the houses to be demolished by the project. The local government should distribute land for housing plots free of charge so the affected households can build new houses themselves. (3) For the affected special-purpose facilities, the construction unit should pay the fund, and the township and county governments will help build new facilities; or compensate according to replacement value after the legal house appraisal company provides an assessment. (4) For all the attached facilities, the construction unit should compensate according to the market or replacement value, whichever is larger. For the trees which can be transplanted, people can transplant them in suitable season before the construction demolition begins. (5) To redistribute land seriously in consultation with affected villagers. To sign new land contract if the land is acquired. (6) Guide the affected individuals to join non-agricultural industry to raise their labor income. During the project construction, guide the affected persons, especially the poor, to provide labor service for construction. When the project finishes, the project should employ local persons who have priority to work for the project maintenance.

8.2 Land Redistribution and Income Restoration Measures 97. In general, for the 17 affected villages, the farmland per capita before land acquisition is 1.1 mu. The project will acquire 141.73 mu land, accounting for 0.35% of the total 35959 mu farmland. The farmland per capita after land acquisition is 1.1.095 mu, and the loss of farmland per capita is 0.005 mu. Second, for the 395 households affected by land acquisition, Didian village of Qianhe town is affected most by land acquisition, and the acquired land is 8.5 mu, accounting for 0.74% of the total 1146 mu farmland of the village. The loss of farmland per capita is only 0.62 mu. For the 17 affected villages, because the amount of acquired land is very small, every village can redistribute farmland and all the affected persons can get farmland similar to the acquired land. At present, every village confirms above principle through villagers conference and puts forward a plan for land redistribution. For the new plan, the village and the villagers will sign new contracts, so the newly redistributed land to the affected persons will be protected by the law.

98. During the construction of the project, in order to maintain and raise villagers’ living level, the affected villages and the implementing agency reach an agreement. The implementing agency promises that once the project begins, the villagers can take part in the construction if they are willing to, including: (1） In the same condition, the affected villagers have priority to take earthwork, or supply food and drink. （） 2 When the project completes, the project administrating agency will employ the affected persons to maintain the road and plant trees, etc. The wage or salary will be according to the Law of Labor. (3） In order to

take affected women into consideration, the portion of women labor should not be lower than 30% in the construction of the project. According to the estimate, the above measures will bring 600,000 yuan of wages to the affected persons.

99. In addition, systematic skill training will be provided to the affected families. Based on the need of local industry structure, local governments will provide training on planting, agricultural machinery and marketing in order to make each family gain relevant employment skills. By the end of 2011, when the project will have finished, the affected persons should receive skill training at least three times.

Table 14 Skill Training Plan

Schedule Training Plan In 2010 The representatives of affected persons go outside to study rural economic development project First half of 2011 Free lecture on repairing the agricultural machinery (3—5 days, for 100 persons) Second half of 2011 Skill training on poultry and gardening skill (3—5 days, for 100 persons) In 2011 A skill training according to affected persons' request

8.3 House Relocation

100. During the implementation of the project, there are 12,942.5㎡ building need to demolished, and 460 villagers in 111 households will be affected by the demolition, accounting for 1.25% of the 36,604 persons of 8874 households in the affected 17 villages. In order to relocate as well as possible, every affected villagers' committee negotiated with the affected persons and decided to distribute housing land in the affected persons' own villages, so the affected persons can still live in their own village. The housing land given to the affected households is at least the same area as the average housing land area. The standard to choose new housing land is to concentrate in the village in order to be easy for daily life and business, or to be near the highway in order to more convenient for the transport, medical care and children's education. Because our country is developing “New Rural Area” Project, the newly-built houses of the affected persons can be part of the construction of New Rural Area Project. In a word, the living condition of the affected persons is better than the original ones.

8.4 Economic rehabilitation program for vulnerable groups

101. For the vulnerable groups, such as the aged, the disabled, the poor and families lacking labor, the project will provide added financial and technical assistance as necessary. For these vulnerable groups, a series of measures will be implemented to decrease the adverse effects, to assist them to relocate and rehabilitate their household economy. In addition, a special rehabilitation fund, which is 1% of the total resettlement budget, will be spent on the implementation of the measures for the vulnerable groups. These are: (i) To provide special consultation; （）ii to choose housing land first; (iii) to send labor to help build new houses; (iv) to give extra resettlement and rehabilitation subsidy; (v) to give priority to get other economy rehabilitation measures; and (vi) the poor, the disabled, the aged and women will get special attention and priority to receive special education and skill training.

102. The implementing agency and relevant administrations have reached an initial agreement on the above principles. The relevant local government agencies also promise to assist the vulnerable groups to rehabilitate their economic and living conditions according to the plan.

8.5 Special Measures for Women

103. China has put the Protection Law of Women and Children of PRC in practice, which means that Chinese government takes women's rights and interests seriously. The law regulates that men and women have the same rights, women should not be looked down upon, and women's rights and interests should not be deprived.

104. The project takes women's rights and interests seriously. In order to protect affected women's rights and interests, the project puts forward the following measures: （）i In the process of resettlement and economic rehabilitation, women;s opinions on choosing new housing site and economic rehabilitation programs will be taken into account. In order to fulfill the target, the representatives of the Women’s Union should have a meeting with affected women to get the information on women’s concerns and demands. （） ii Women’s low training and education level limits their chances to choose way to get more money. The choice of profession and livelihood is vitally important for women. In order to provide convenience of income and life rehabilitation for the affected persons, the project proposes several skill training programs. The project will give 40—60% training chances to affected women. The Women's Union and the Labour Bureau in affected area should assist to formulate and implement training program. (iii) Besides the rights and interests formulated by the laws of China, the project will provide special assistance to the women, such as to propaganda on the Marriage Law of PRC and the Protection Law of Women and Children of PRC, to provide medical care to the affected women and elderly, and to promote health condition of affected women and children.

8.6 Rehabilitation program of special facilities

105. The affected special facilities are electricity line and telecommunication line. In the early stage of feasibility study, the survey of impact on residents from the relocation of the affected special facilities has been done. The project plan takes their opinions and suggestions into account after consulting with affected villages' leaders, relevant agencies and affected families. For example, when rebuilt, the electricity line and telecommunication line poles can be raised; the relevant agencies should design and rebuild the electricity facilities and telecommunication facilities if necessary.

8.7 Entitlement Matrix 106. The entitlements of the affected persons are summarized in Table 15.

Table 15 Matrix of affected persons’ compensation rights and relocation policy

Type of loss Applicability Person/collective Entitled person/ group Compensation policy Compensation rights Implementing item with rights Permanent Land within the a) villages owning a) 17 affected villages a, land compensation paid to Compensate in full to The village committee will loss of implementing line the land b)1553 persons in villages persons and villages confirm losses and farmland b) villagers using 395 households who b. redistribute land to APs at who own or use land payments. the land lose land affected villages; at a minimum of 16 Township authorities approve and monitor c. compensate in cash for times the average standing crops according to annual output value policy (AAOV), the distribution between those who own or lose land will be decided by the villagers conference Temporary Land used as work Villagers using the Defined during Compensate in cash 2 times AAOV to Use is approved and loss of land site within or near land construction according to loss every year, households that contract monitored by township implementing area recover as before the land, or to the officials. Maximum period construction, APs’ life at collective if common is 2 years. Land land. Restoration of land occupation must obtain least as before by the contractor to its the consent of the previous or higher user/owner. Vacant or quality when land is wasteland should be returned. utilized as much as possible. Scattered trees on Loss of Cash compensation affected land Owner of Full payment Small trees will be scattered based on replacement use affected trees Directly to owners replanted. trees value permanently or temporarily Loss of Housing site and Persons and 460 persons in 111 Compensation in cash to Full compensate in Village and APs housing site property within households who households of 16 APs, including housing site cash to owner of decide new housing /property implementing area lose housing villages and housing, 500 yuan housing, site, the construction or affected by the transition fee every month compensation of unit is in charge of project and 500 yuan removal fee housing site to smoothing the site and for every household village, the villages connecting redistribute housing infrastructure site Loss of non- Non-farmland with Villages owning 17 affected villages Compensate in cash Village Villagers conference farmland the project area land decide how to use the compensation,

Affected All facilities within Owners of all owners of all facilities Compensate in full price Compensate in full special project area facilities according to market price according to facilities market Vulnerable Aged, weak, Persons or The project sets up a special priory to getting Relevant government group women, children, households who are fund which is 1% of the compensation and supplies assistance disabled, poor, vulnerable group budget to help the assistance under the those who cannot vulnerable group together same condition work or lack of with towns and villages labor force etc Note: all the policies of the project will be carried out after official approval.

9. RESETTLEMENT BUDGET AND FINANCING PLAN

9.1 Cost estimates

9.1.1 Basic costs

107. The land acquisition, housing demolition and resident resettlement compensation is part of the total investment of the project construction and is included in the project annual investment plan. The total resettlement cost is RMB 12.716 million yuan, among it, the basic cost is RMB 9.2954 million yuan.

9.1.2 Contingency cost

108. The unforeseen physical and price increases in land acquisition, housing demolition and resident resettlement compensation is budgeted as the contingency cost, which equals 30% of the basic cost of land acquisition, housing demolition and resident resettlement compensation of the project.

9.1.3 Management cost

109. The management cost equals 2.8% of the basic cost of land acquisition, housing demolition and resident resettlement compensation. Among it, the province, county can use 1% respectively, town and villagers' committee use 0.8% respectively.

Table 16: Land Acquisition and Resettlement Budget

Item Total (RMB) A. Basic Costs 9,295,363 1. Land compensation 2,167,110 2. Farmland reclamation fee 395,631 3. Farmland occupation tax 158,252 4. Housing compensation 5,705,855 5. Other housing compensation 376,715 6. Young crop compensation 103,300 7. Removing compensation 55,500 8. Transition subsidy 333,000 B. Administration Costs (2.8% of Basic Costs) 260,270 C. Service Charge (3% of the Basic Costs) 278,860 D. Monitoring and Evaluation Cost (0.5% of the Basic Costs) 46,477 E. Plan preparation cost (0.5% of the Basic Costs) 46,477 F. Contingency Costs (30% of Basic Costs) 2,788,609 TOTAL 12,716,056

Table 17 Land Compensation Breakdowns Type Irrigated Land Dry Farmland Orchard Housing Land Slope Land Total Quantity (mu) 36.2 77.64 2.0 21.1 4.79 141.73 Compensation Standard 20000 16000 6000 6000 13000 (CNY) Compensation Costs (CNY) 724,000 1242,240 12,000 126,600 62,270 2,167,110

Table 18 Housing Compensation Breakdowns Type Brick and Concrete Brick and Wood(m2) Earth and Wood (m2)Simple (m2) Total (m2) 2 Quantity (m ) 3142 8419.5 1002 379 12942.5 Compensation Standard 500 450 300 120 (CNY/m2) Compensation Costs (CNY) 1,571,000 3,788,775 300,600 45,480 5,705,855

Table 19 Ground Attachment Breakdowns (1)

Type Fruit tree Grown tree Young tree enclosure greenhouse Water closet nursery Tomb Total Quantity 52 347 240 710 127.7 122 1.9 20 Compensation 5200 5205 1200 71,000 12,770 18,300 3000 20,000 136,675 (CNY)

Table20 Ground Attachment Breakdowns (2) Power Cable Telecommunication Power Cable Optical cable channel Water Water Total Type (m) Cable (m) Pole Well pipe

Quantity 18150 2450 236 20420 26 2 15 Compensation 18,150 4890 94,400 61,260 1040 60,000 300 240,040 (CNY)

Table21 Young Crop Compensation

Type Young crop Quantity (mu) 103.3 Compensation Standard (CNY) 1000 Compensation (CNY) 103,300

9.2 Fund Flow

110. Land acquisition, relocation compensation cost shall be paid directly to villager's committee and affected individual by the District Project Office after the fund is paid to the bank and the District Project Office by the implementing agency.

Provincial and District government fund district government

bank

District project office

Villagers’ Villagers Relevant committe (house, enterprise e (land trees, s payment etc) (facilities) s)n

9.3 Fund sources and use of contingency cost

111. The land acquisition and resettlement will be financed from provincial special subsidy and fund transferred from District Government. The implementing agency has the right to use the contingency cost in the budget. The District Project Office should report it to the Provincial Development and Reform Committee and Provincial Bureau of Treasurer, and after their approval, they will be added to the budget. The procedure will take no more than one month.

10. INSTITUTIONAL ARRANGEMENTS

10.1 Coordination agencies

112. In order to strengthen the leading of the post-disaster reconstruction, Shaanxi Provincial Government issued Note on Shaanxi Province Post-disaster Reconstruction Overall Plan (Shaanzhengfa 2008 No.51), at the same time, the Post-disaster Reconstruction Leading Group, which is in charge of implementing of the reconstruction, was set up. The project is directed by the office (Shaanxi Provincial Project Office: in Shaanxi Using Overseas Loan Office) of the Leading Group, which is in charge of organizing, applying for ADB's loan, coordinating relocation, monitoring and inspecting the payment of usage of the compensation for land acquisition and resettlement.

113. The county (district) reconstruction projects are implemented by the relevant local government.

10.2 Implementing agency

114. On December 31, 2008, according to the spirit of the relevant documents of Shaanxi Provincial Government and Baoji City Government, Chencang District Post-disaster Reconstruction Leading Group becomes the implementing agency of this Project. Baoji Chencang District Transport Bureau set up Baoji City Chencang District Post-disaster Reconstruction Traffic Project Supported by ADB's Emergency Loan Office which is the project implementing agency and from then on, the staff began to work.

115. The project implementing agency will be in charge of organizing and coordinating land acquisition and resettlement. The duty is as follows: （）i According to ADB’s and PRC’s policy and laws, in charge of checking the quantity of affected land, removed buildings, special-purpose facilities and attached materials, in charge of assessing and formulating compensation standard of affected special-purpose facilities, in charge of making up the project resettlement plan, and in charge of signing the contract on land acquisition and resettlement with the affected villages and persons. （）ii In charge of surveying the land acquisition, listening to the opinions of affected people, accepting all kinds of complaints and requests, and dealing with them in time. (iii) In charge of the concrete affairs of compensation of land acquisition, assuring the building of new houses and the timely progress of all compensation and of charge of payment and utilization of the compensation of land acquisition and removing. (iv) In charge of reporting the project process to the provincial project office, and handing in relevant statistical data.

10.3 Village Committees and Village Groups

116. Authorized by villagers' convention, affected villagers' committees and villager groups are in charge of right use of resettlement compensation and payment to the affected persons; to take part in the socio-economic survey and project impact survey; assist to work out the “Land Acquisition, Relocation and Resettlement Plan”; to organize the villagers to take part in the project and to explain the relevant policies; to implement, check, supervise and record land acquisition and resettlement activities in their village; to organize villagers to build new houses and help to get building approvals; to choose resettlement place and distribute housing land for relocated families; to adjust land distribution and implement economy rehabilitation; to supervise land acquisition, housing and attached facilities demolishing and reconstruction; to deal with

grievances and appeals, to investigate and fulfill the relevant work; to help relocated persons to solve all the problems during relocation; to report the progress in land acquisition and resettlement; and to help vulnerable families to relocate.

10.4 Internal supervision agency

117. Baoji City Chencang District Post-disaster Reconstruction Traffic Project Supported by ADB's Emergency Loan Office set up an internal supervision office for land acquisition and resettlement, consisting of 3 persons. The duty of the office is to guarantee all the land acquisition and resettlement officers can fulfill their tasks, carry out the terms in “Land Acquisition, Relocation and Resettlement Plan”, and guarantee all the affected persons can get their rights and interests.

118. The organization is as follows:

ADB Shaanxi Provincial Government Post- disaster Reconstruction Office

External Monitor (3 persons) Chencang Project Office ( 3 persons)

Internal supervision (2 persons）

Affected village ( 2 persons each village)

11. IMPLEMENTATION SCHEDULE

119. The land acquisition, housing demolition and resettlement plan implementation will begin in December 2010, and will be finished one month before the construction. The plan is divided into 4 stages: the first, preparation; the second, implementation; the third, rehabilitation; and fourth, inspection/monitoring/assessment (internal and external monitoring will be in the all implementation process).

11.1 Preparation stage (January 2009---September 2010)

(1) To set up project administration unit. This job is undertaken by Baoji Chencang District Post-disaster Reconstruction Traffic Project Office. (2) To make use of newspapers, radio, TV and poster to make the project known, in order to get understanding and support of affected collective, individuals and the society. The job to explain the policy of resettlement compensation is undertaken by Baoji Chencang District Post- disaster Reconstruction Traffic Project Office. （）3 To erect boundary markers of the occupied land. To mark the boundary of the occupied land and leased land, measure and erection of the boundary markers are undertaken by the Project Office and affected villages. （）4 To measure and check kind and quantity of affected land, housing and other facilities in site. This job is undertaken by the Project Office and affected villages.

11.2 Implementation stage (December 2010—March2011)

(1) The District Project Office signs an agreement on land expropriation, housing demolition and resident relocation compensation with affected villages' Villagers' Committee and affected villagers. (2) The District Project Office reports documents of occupied land. (3) The implementing agency transfers housing compensation through the Construction Bank of China. (4) Affected villagers, together with the District Project Office and villagers committee, choose place, identify house structure and begin to build. (5) Land compensation and resettlement subsidy should be paid to village committee directly. Housing compensation should be paid directly to affected persons. Land reclamation compensation should be paid to land administration bureau to reclaim new farmland. (6) The District Project Office transfers land expropriation, housing demolition and resident relocation compensation to town and village committee though the Construction Bank of China (7) Both The District Project Office and village committee redistribute land to those who lose land (at the same village or nearby). (8) The District Project Office pays housing, young crops, all kinds of attached facilities, transition subsidy, and removal subsidy to affected persons. (9) The District Project Office pays infrastructure construction subsidy of new resettlement and help to construct infrastructure. (10) Demolish old houses when new houses are built. The District Project Office are in charge of demolishing affected ground attachment and transferring construction land to the project construction unit after finishing the land expropriation, housing demolition and resident relocation.

11.3 Rehabilitation stage (March 2011----December 2011)

The main tasks are: (1) Adjust land, (2) Implement economic recovery plan and measures, (3) Affected individuals' skill training, and (4) Ensure new houses are completed in a timely manner.

11.4 Monitoring and Evaluation stage (December 2010—December 2011)

120. The internal supervision is a continuous work, which begins when the land acquisition begins and finishes when the project completes. Relevant local agencies can inspect and supervise the work of the project management unit. They will set up a unit to undertake daily inspection and supervision in order to guarantee the implementation according to RP terms.

121. The first job of external supervision is socio-economic baseline survey (September 2010), and will continue annually until the project completes, and give an assessment of the resettlement implementation.

122. The contents of the monitoring and evaluation stage is: (1) Payment situation of all affected individuals and collective. (2) Condition of new housing in the new sites. (3) The payment of all kinds of subsidy to the affected individuals. (4) Infrastructure situation in new sites. (5) The implementation of economic recovery plan and measures for affected households, including land adjustment, job opportunities and skill training. (6) Deal with and solve the opinions of land acquisition, housing demolition and resident resettlement from the affected individuals.

Table 22 Schedule of land acquisition, housing demolition and resident resettlement

Timing Agency in charge Work contents 2009.1-2010.10 The District Project Office · set up project office · consultation · engage external Monitor · socio-economic survey 2009.12-2010.9 The District Project Office · work out Resettlement Plan · ask for opinions of government and affected individuals · consultation further · publish《》 information handbook 2010.5- The District Project Office ·erect boundary markers Affected Villages’ ·measure and check affected quantity Villagers’ Committee 2010.12 The District Project Office ·sign compensation contract Affected Villages’ ·go through formalities of occupied land Villagers’ Committee

2010.12---2011.3 The District Project Office ·transfer land compensation Affected Villages' Villagers' · transfer all kinds of compensation to the Committee affected individuals

2010.12--- The District Project Office ·inspect the work process Independent supervisors ·supervise and inspect payment of compensation 2010.12--- The District Project Office ·receive all complaints Independent supervisors ·inspect usage of the fund ·internal and external supervision ·track survey to the affected villages ·assess the land acquisition, housing demolition and resident resettlement

11. MONITORING AND EVALUATION

123. In order to guarantee the smooth process of the land acquisition, housing demolition and resident resettlement compensation, there are two kinds of supervision to be carried out simultaneously by two separate organizations in different ways: the first, an internal supervision system by the government to monitor according to RP terms in the angle of administrative management; and the second, an independent external monitoring and evaluation system by sociologists to assess whether resettlement objectives have been met.

11.1 Internal Supervision

11.1.1 Contents of internal Supervision

124. The contents of the internal supervision consist of two aspects: （）i the supervision to the relevant area administrative management department, including project management organization of county and village government; and （） ii the supervision of the compensation for the affected individuals according to RP terms.

125. The basic contents of the work： a. If resident resettlement is carried out according to RP terms b. If the affected individuals get enough compensation according to the formulations. c. If more job opportunities are provided to the local residents taking advantage of the project implementation. d. If the affected individuals are satisfied with the new land for housing e. If the affected individuals are satisfied with the compensation program. f. If the living condition of the affected individuals are safe and proper g. If the affected individuals get the redistributed land according to relevant regulation h. If the effected individuals, who lose land, are satisfied with the quantity and quality of redistributed land, living condition and production condition. i. If the affected individuals are satisfied with their income change and rehabilitation situation after land acquisition. j. If the affected individuals are satisfied with the project staff's working method, attitude and effect. k. If the information, notification, consultation and coordination are given to the effected individuals according to the formulations. l. If the expense is recorded in written form, especially the description of the cause of overspending and resource of supplement. m. If the effected individuals are permitted to appeal according to the formulations. n. If the effected individuals or enterprises and satisfied with the results that some staff get punishment because of their possible activities against the law. o. If the implementation activities are completed in time which should be completed a month before the project begins.

11.1.2 The method of internal supervision

126. Different contents of supervision is carried out in different ways. The local project management organization should provide all kinds of data about land acquisition, housing demolition and resident resettlement compensation:

11.1.3 The implementation of the internal supervision

127. According to land acquisition, housing demolition and resident resettlement compensation program, the internal supervision is at both the preparation stage and implementation stage.

11.1.4 The responsibilities of supervision agencies

）The supervision agencies should investigate the compensation standard, compensation amount and scope carried out by the implementation agency, and the right to assess, investigate and supervise the finished work or finishing work done by county-level project agencies （）The supervision agencies should report or rectify the quantity, unit, and slope which doesn’t accord with the formulations. Furthermore, the supervision agency also has the right to announce to the pubic what is not correct after rectifying. （）The supervision agencies should report and to help deal with some fierce problems put forward by effected individuals or enterprises or announce it to the public. （）The supervision agencies should prosecute to the local judicial office, if any staff member hurt any individual’s or enterprise’s benefit taking advantage of his power. （）The supervision agencies should announce any incident which has been dealt with but didn’t get enough effect and to prosecute again any activities against the law which doesn't get concerning punishment.

11.1.5 Procedure and demand of supervision agencies

128. The supervision agencies should combine the responsibility to the government with the responsibility to the affected individuals. They should summarize experiences and lessons, and make a work record(log). The supervision agencies can have a meeting at regular or irregular intervals and report relevant circumstances. Each season, the supervision agency should give a written report to the project implementation organization about the supervision work and dealing with the supervised incidents. Every three months, a brief progress report of all the Project supervision work should be submitted to ADB; summary of progress on resettlement should be included as applicable.

129. The county-level project management office should collect supervision data from the town (village)-level office and the monthly sample investigation. These data should contain both household level and village level data. The collected data of every relevant individual/household should be stored electronically and revised after every supervision investigation.

130. The internal supervision report will be discussed in every regular meeting of the project implementation agency.

11.2 External monitoring and evaluation

131. In order to do the land acquisition, housing demolition and resident

resettlement compensation well, the project needs not only the internal supervision, but also the external supervision by a qualified and independent monitor. The project executive agency, Shaanxi Province Using Overseas Loan Project Office has decided to entrust Shaanxi Kexin Consultant Company (SKCC) to undertake the external supervision of the land acquisition, housing demolition and resident resettlement compensation of the Project, including other subcomponents of the Project.

11.2.1 The contents of monitoring and evaluation 1）To check if the land acquisition, housing demolition, compensation and residential relocation and economic rehabilitation is carried out according to RP terms. 2） To ensure if the activities are completed that should be completed before the construction. 3）To determine the general target of land acquisition, housing demolition and resident resettlement compensation and implementation degree of RP. 4） To determine if the compensation amount matches the property loss and whether the affected individuals can resume their original income levels. 5） To determine how satisfied the affected individuals are with the land acquisition, housing demolition, compensation, residential relocation, economic rehabilitation and living conditions. 6） Satisfaction degree of affected individuals about land acquisition and resettlement and quality and quantity of redistribution land. 7） Satisfaction degree of affected individuals about location of resettlement and difference of environment with the original location. 8） Satisfaction degree of affected individuals about compensation standard and method of dismantled houses, buildings, ground attachment. 9） Satisfaction degree of affected individuals about subsidy standard and amount in resettlement. 10) In the course of acquisition and resettlement, whether correlative institution and local government consult fully with and assist affected individuals and whether any forced/rushed dismantling and resettlement happened. 11) Supervision on fund flow of land acquisition and resettlement.

11.2.2 Monitoring Approaches 1）To inspect in the land acquisition, housing demolition, compensation, residential resettlement and economic rehabilitation progress and listen to review reports prepared by the local project implementation agencies. 2） The survey measures to the affected individuals are based on sampling and tracer surveys. According to some quantified data such as land area, compensation standard, compensation amount, resident's income, questionnaire survey is adopted and the sample households should not be lower than 20% of relocated households and 10% of the total affected households. The obtained data of the sample households should be stored for the purpose that it can be compared with a new one. 3） For some qualitative data such as resident’s opinions, attitude, complaints and activities, the random interview or focused group discussions can also be used for supervision. The ways of asking questions should be scientific.. 4） Random sample survey in regular and irregular intervals: mainly adopt symposium and official family visit to understand the affected individuals’ problems and the causes in the process of land acquisition, housing demolition and resident resettlement compensation and understand the real information.

11.2.3 Schedule of Monitoring, Evaluation and Reporting The independent monitor – SKCC -- shall begin from December 2010 and complete the final evaluation by the end of the Project construction (i.e., 2012). 1） SKCC will first conduct the Baseline Survey and prepare a report for submission to the EA (BMG) and ADB by end December 2010. 2） After the baseline survey, SKCC will conduct investigations and survey every six months during peak time of resettlement implementation; thereafter, evaluations will be conducted once each year. ------Inspect and supervise the realization of the previous issues, recommended actions and follow-up on the results. ------Carry on according to all the terms of this supervision outline. 3） If the supervision agencies think it is necessary, SKCC can inspect and survey more frequently. 4） The external supervision agencies should record every supervision activity in detail and prepare a written report for submission to the EA and ADB. The contents in the report should include the experiences in the land acquisition, housing demolition compensation, residential resettlement, economic rehabilitation, living conditions, and the existing or remaining problems. The executive agency should find way to solve the existing problems to improve their work after they receive the report. 5）After resettlement is completed, SKCC should prepare a complete, correct, detailed and objective completion report. Then, the company should discuss and exchange ideas with the EA; SKCC should then finalize and submit the report to ADB and prompt the construction unit to address any remaining problems.