Ethnic Minority Development Plan

November 2011

People’s Republic of China: Hunan Flood Management Sector Project (Jiangyong County Subproject)

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

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

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

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

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

Jiangyong County Urban Flood Control Subproject

ETHNIC MINORITY DEVELOPMENT PLAN

Jiangyong County PMO

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Table of Contents

I.INTRODUCTION…………………………………………………………………………………………………………5

II.BACKGROUND…………………………………………………………………………………………………………5

A. PROJECT DESCRIPTION………………………………………………………………………………………………5 B. ETHNIC MINORITIES IN HUNAN……………………………………………………………………………………….ERROR! BOOKMARK NOT DEFINED. C. LEGAL FRAMEWORK………………………………………………………………………………………………….7 1. POLICY, PLANS AND PROGRAM…………………………………………………………………………………...ERROR! BOOKMARK NOT DEFINED. 2. ADB POLICY ON INDIGENOUS PEOPLE IN PROJECT AREAS (PA)…………………………………………….. ..7

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

A. METHODOLOGY……………………………………………………………………………………………………….ERR OR! BOOKMARK NOT DEFINED. B. MINORITY POPULATION IN FOUR RIVER BASINS…………………………………………………………………….ERROR! BOOKMARK NOT DEFINED. C. ETHNIC MINORITIES IN PROJECT COUNTIES……………………………………………………………………….10 D. ETHNIC MINORITIES IN JIANGYONG COUNTY…………………………………………………………………12 E. ETHNIC MINORITIES IN PROJECT PROTECTED AREAS (PPA)…………………………………………………….13 F. ETHNIC GROUPS AND THEIR DISTRIBUTION………………………………………………………………………..15 1.YAO………………………………………………………………………………………………………………15 2. OTHER MINORITIES…………………………………………………………………………………………16 G. SOCIOECONOMIC CHARACTERISTICS OF MINORITY COMMUNITIES………………………………………………16 H. ON GOING MINORITY DEVELOPMENT PROGRAMS………………………………………………………………...18

IV. PROJECT IMPACTS ON MINORITIES…………………………………………………………………………...21

A. PAST FLOOD IMPACT……………………………………………………………………………………………...... 21 B. PROJECT BENEFITS FOR DIFFERENT BENEFICIARIES……………………………………………………………..22

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C. POTENTIAL NEGATIVE IMPACTS OF RESETTLEMENT………………………………………………………………24 D. EXPECTATIONS AND CONCERNS……………………………………………………………………………………28 E. POVERTY REDUCTION MEASUREMENT………………………………………………………………………….....29

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

A. SPECIFIC MEASURES/ ACTIVITIES………………………………………………………………………………….39 1.MITIGATION MEASURES…………………………………………………………………………………………..39 2. ENHANCEMENT MEASURES……………………………………………………………………………………...41 3. PROJECT BENEFIT MEASURES…………………………………………………………………………………..42 B. BUDGET AND FINANCING SOURCES………………………………………………………………………………..42 C. IMPLEMENTATION ARRANGEMENT………………………………………………………………………………….42 D. MONITORING AND EVALUATION (M & E)…………………………………………………………………………...43

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I. INTRODUCTION

This Ethnic Minorities Development Plan (EMDP) is prepared to ensure equitable sharing of the project benefits and mitigation measures by the concerned minority communities and individuals in the project area of the Jiangyong Flood Control Subproject, which is part of Hunan Provincial Flood Management Project in Hunan Province, People‟s Republic of China (PRC). The EMDP for Jiangyong Subproject is based on the PPTA‟s Resettlement Plan, the Social and Poverty Assessment, and consultation with ethnic minority groups, local county governments and their respective line agencies. A summary of distribution and socioeconomic characteristics of ethnic minorities in the project areas – four river basins, and 35 subprojects will be the context for such assessment. Based on review of social and poverty conditions of ethnic minorities in both Jiangyong County and the project protected areas, adequate provisions to enhance the economic conditions of minority groups have been integrated in project design. Provisions for special mitigation measures have been included in the resettlement plan, which will help ensure that ethnic minorities adversely affected by resettlement will also benefit from the project. Current government policies and programs for ethnic minorities further help to protect and enhance project benefits to ethnic minority groups. This plan targets the Yao nationality in the project area, which account for about 51.5% of the total ethnic minority population in Jiangyong County.

II. BACKGROUND

A. Project Description

The proposed Jiangyong Flood Control Subproject is one of the 35 subprojects under Hunan Flood Management Project. The subproject is located in Xiaopu Town (the county town of Jiangyong County) and it belongs to the jurisdiction scope of Yongzhou City, which is situated in the southeast of Hunan. Xiaopu Town is the center of politics, economy, culture, science and education of Jiangyong County. Jiangyong County covers an area of 1632.6 km2 with the Yongming and Taochuan rivers flowing through it, of which the Yongming River flows through the Jiangyong County town from north to south. The county town is surrounded by hills and Xiaopu Town is divided into 2 parts by Yongming River. Most of the urban houses are built along the river. Limited by geographical location, Jiangyong County is attacked by floods every 3 to 5 years on average, which directly threaten the safety of life and property of the people and slow down the economic development of this area. The maximum flood level taken place in 1985 reached 226.11m. Over 40% of the total urban area were inundated， the power supply and communication were broken, 18,000 people were affected and the direct economic loss is CNY 230 million.

The main objective of the proposed Jiangyong subproject is to: （i）protect Jiangyong from flood threat; （ ii）strengthen the management of Yongming River drainage basin, which is a component of Hunan Flood Management Project. The subproject includes:

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 Build dike with a length of 6.67km in the 2 protection areas of Jiangyong County along the both banks of Yongming River;  Build 4 culvert gates in Jiangyong County town. The area protected by the project will be 8.0km2. According preliminary feasibility study, the total investment for Jiangyong subproject would be CNY 44.94 million, out of which, 42 percent would be financed by ADB loan.

B. Ethnic Minorities in Hunan

There are as many as 55 ethnic minority groups1 in Hunan making up a population of 8.33 million or 12.2% of Hunan‟s total population. There is one autonomous prefecture of ethnic minority in Hunan, which administrates 8 counties, 7 minority autonomous counties with more than 50% of the populating as minorities and 2 unofficial minority counties enjoying minority county benefits. Besides these minority counties, there are 100 ethnic minority townships in 34 counties. In Hunan, there are 8 minorities with a population over 10,000, they are Tujia, Miao, Dong, Yao, Bai, Hui (Muslims), Zhuang and Mongolia. These eight groups make up over 99.3% of the total minority population of Hunan. Most of them are located in the western Hunan (i.e., the Xiangxi Prefecture, Huaihua and Zhangjiajie municipalities), and the minorities in the western Hunan account for 75% of Hunan‟s total minority population. Table 2-1 presents the details based on the 5th national census.

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

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

Main group Han 59,723,105 87.8

Tujia 3,536,976 42.4

Miao 2,401,869 28.8

Minority groups Dong 1,027,390 12.3

Yao 951,161 11.4

Bai 175,836 2.1

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

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Hui 126,578 1.5

Zhuang 33,925 0.4

Mongol 23,804 0.3

Other 56,364 0.7

Subtotal 8,333,902 100 12.2

Total 68,057,007 Source: Fifth Consensus data, Hunan Statistical Year Book 2008. C. Legal Framework

1. Policy, Plans and Program

After 1949 the PRC Government adopted a policy of ethnic equality, in which all groups are legally and constitutionally equal. Given the inferior social and economic conditions of most minorities, the government adopted a policy of positive discrimination in favor of the minority nationalities (minzu) to help them "catch up" with the mainstream population. To implement this policy, the Government first clarified, enumerated and mapped the identity of ethnic groups. PRC post-1949 policy defines nationalities (minzu) in very precise terms, based on, inter alia, shared language, territory, economic base, and traditions/culture. Under this definition, the Han constitute the dominant nationality in the PRC. Some minority nationalities (e.g. Hui and Man) have become assimilated into the Han language and cultural traditions - but are still recognized as minority nationalities. Since 1949 there has been a tendency for smaller ethnic groups to fuse and merge in the definition of officially recognized minority nationalities.

The 1954 Constitution specified mechanisms for exercising autonomy in minority areas. The 1974 Constitution reduced the financial autonomy, and other powers, of these areas. Some of these powers were restored in the 1978 Constitution and further extended by the State Council (1980) and the National Law of 1984. Since the early 1980s governments of autonomous areas have been able to decide on economic policy, including what to produce, some latitude in allocating government subsidies, and within set guidelines, education and budgeting. In 1982 the formulation of the one child per family directive by the State Council advocated more flexible approaches to planned parenthood amongst the minority nationalities. Minority areas have special access to relief funds, loans, subsidies and tax relief, including a lower tax on grain, to assist in economic development. Minority people also benefit from points score system which places them in a higher rank than the main stream Han for university admissions. For the 8 provinces where minorities are concentrated (Guizhou, Yunnan and Qinghai provinces and the five minority autonomous regions of Inner Mongolia, Xinjiang, Guangxi, Ningxia and Tibet) government subsidies in the past have been substantial.

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

The Asian Development Bank (ADB) notes that the social indicators, economic status and quality of life of minority peoples are often below those of the mainstream population. While fully recognizing the sovereignty of the borrowing country, ADB accepts that it has a responsibility for ensuring (i) equality of opportunity for national minorities and (ii) that its operations and assistance to developing member countries do not negatively affect the cultural identity, welfare and interests of national minorities. Where ADB-assisted projects will potentially cause adverse affects on national minorities, ADB requires the borrowing country (or project initiator of private sector) to prepare an Minorities Population and Development Plan (MPDP) acceptable to ADB. A MPDP should describe the socio-economic characteristics of minorities affected by the project, identify significant project impacts, both positive and adverse which affect them, and should consider modifying or redesigning the project to minimize adverse effects and/or include an acceptable compensation plan. The MPDP also provides procedures for project implementation, monitoring, and evaluation of how to handle minority affairs. The ADB‟s Policy on Indigenous Peoples (1999, Manila) sets out the criteria for determining whether or not an MPDP should be prepared. The key criteria are: ”… indigenous peoples should be regarded as those with a social or cultural identity distinct from the dominant or mainstream society, which makes them vulnerable to being disadvantaged in the processes of development.” (p.6, op cit); ”the Initial Social Assessment determines that indigenous peoples are likely to be affected significantly...or that indigenous peoples are disadvantaged or vulnerable to an intervention because of their social and cultural identity, an MPDP must be developed.” (p.18, op cit); An EMDP should be prepared if a project “affects indigenous peoples adversely and significantly” (p. 19, op cit).

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III. ETHNIC MINORITIES IN THE PROJECT AREA

A. Methodology

In order to understand the basic social and economic profiles of the affected people and identify the impacts to be brought by the Project, a social and poverty assessment was carried out by the PPTA consultant with the assistance of Jiangyong Subproject PMO, which included collecting secondary data, and conducting interviews among different stakeholders. The focus group discussions and sample household survey, together with consultation of local government agencies provided much of the quantitative and qualitative materials that were used to prepare this report, which include stakeholder analysis, needs and concerns among women and ethnic minorities, and poverty profile for affected communities and individuals. It has also been used as the basis for identifying the potential project benefits and impacts, assessing their significance, and formulating complementary measures to enhance positive benefits and mitigate negative impacts. A total of 20 sample households and 95 persons were surveyed from 16 residential committees or villages in Xiaopu Town, Jiangyong County. Among these sample households, 10 households or 50 percent were ethnic minorities. In addition, about 6 gender separated focus group discussions were conducted, followed with stakeholder interviews and key informant interviews among officials from relevant county agencies. Only the data on ethnic minority were used to prepare this EMDP

B. Ethnic Minority in Four River Basins

In order to have a basic understanding on distribution and profile of ethnic minorities in the project areas, a great deal of ethnic minority data was collected for the four river basins and the project areas for the Project. For the four river basins, Table 3-1 presents the distribution of different ethnic minority groups. In comparison with the Hunan average, the share of minority population in the four river basins is much higher, indicating relatively high concentration of ethnic minorities. Of the total population in the four basins, there were 6.79 million ethnic minority people, accounting for 13.3%. Among them, Tujia, Miao, and Dong are the main ethnic groups, accounting for 11%, 8% and 4% respectively. Majority of minority people are concentrated in the two western river basins, with ethnic minorities accounting for 52% in Yuanjiang and 64% in Lishui. About 85% of the total minority population in Hunan Province is located within these two river basins. In terms of distribution of different minority groups, Tujia nationalities mainly reside in Xiangxi Prefecture, Zhangjiajie and Changde Municipalities. There were 2.53 million of Tujia nationalities in these three municipalities, accounting for 90.4% of the total Tujia people in Hunan Province. Miao nationalities are mainly living in Xiangxi Prefecture, Huaihua and Shaoyang Municipalities, with 1.95 million people and account for 95.4% of total Miao people in Hunan. Dong nationalities are mainly in Huaihua Municipality, with 834,720 persons or 94% of total Dong nationalities in Hunan. Yao nationalities are concentrated in Yongzhou City – the south end of Hunan, with 531,320 persons or 71.8% of the total Yao people in Hunan. Bai nationalities are mainly located in Zhangjiajie City with 109,076 persons or 81.4% of total Bai people in Hunan Province.2 Most of the minorities are concentrated in the mountainous regions in the north, west, and south of Hunan, bordering with neighboring provinces.

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

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Table III-1: Ethnic Minority Population in the Four River Basins (2007) (1,000 persons) Items Xiangjiang Zishui Yuanjiang Lishui Total Hunan Total Population 31,262.09 10,416.04 8,340.88 2,604.71 52,623.72 68,057.00 Han 30,356.50 10,294.04 3,982.39 950.04 45,582.97 59,723.10 Minority Total 905.59 122.00 4,358.49 1,654.67 7,040.75 8,333.90 % 2.90% 1.17% 52.25% 63.53% 13.38% 12.25% Tujia 39.76 2.24 1,256.90 1,489.14 2,788.05 3,537.00 Percent of Total 0.13% 0.02% 15.07% 57.17% 5.30% 5.20% Miao 28.47 17.29 1979.30 26.46 2,051.52 2,401.87 Percent of Total 0.09% 0.17% 23.73% 1.02% 3.90% 3.53% Dong 8.64 6.24 969.47 0.54 984.89 1027.39 Percent of Total 0.03% 0.06% 11.62% 0.02% 1.87% 1.51% Yao 720.26 44.98 102.56 0.36 868.16 951.16 Percent of Total 2.30% 0.43% 1.23% 0.01% 1.65% 1.40% Bai 2.23 0.13 26.07 134.16 162.59 175.84 Percent of Total 0.01% 0.00% 0.31% 5.15% 0.31% 0.26% Hui 10.66 45.76 17.24 2.60 76.26 126.58 Percent of Total 0.03% 0.44% 0.21% 0.10% 0.14% 0.19% Zhuang 29.2 1.0 1.9 0.4 32.5 33.93 Percent of Total 0.09% 0.01% 0.02% 0.02% 0.06% 0.05% Others 66.38 4.39 5.00 0.98 76.75 80.17 Percent of Total 0.21% 0.04% 0.06% 0.04% 0.15% 0.12% Source: Hunan Provincial Ethnic Commission.

C. Ethnic Minorities in Project Counties

The proposed 35 subprojects under the Project will involve 46 counties or districts, which are defined as Project Areas (PA). Table 3-2 presents the distribution of ethnic minorities in the project areas, which shows similar distribution patterns across the four river basins. Among 46 project counties, there was 3.15 million of ethnic minority population, accounting for 12.3% of the total population in the project counties. Among them, there were 1.54 million Tujia nationalities, accounting for 49% of the total minorities, 0.57 million of Yao nationalities, accounting for 18%, 0.46 million of Miao nationalities, accounting for 15%, 0.24 million of Dong nationalities, accounting for 8%, and 0.11 million of Bai nationalities, accounting for 3%. In terms of distribution of the ethnic minorities, 40% of them came from Lishui, 36% from Yuanjiang, 22% from Xiangjiang, and only 2% from Zishui.

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Table III-１: Ethnic Minority Population in the Project Areas of the Four River Basins (2007) (1,000) Items Xiangjiang Zishui Yuanjiang Lishui Total Hunan Total Population 14,260.51 6,417.93 3,234.54 1,849.22 25,762.19 68,057.00 Han 13,551.88 6,365.04 2,106.48 583.13 22,606.53 59,723.10 Total Minorities 708.63 52.79 1,128.06 1,266.09 3,155.66 8,333.90 Percent of Total 4.97% 0.82% 34.88% 68.47% 12.25% 12.25% Tujia 10.58 1.23 392.72 1,131.86 1,536.39 3,537.00 Percent of Total 0.07% 0.02% 12.14% 61.21% 5.96% 5.20% Yao 493.68 7.50 70.86 0.10 572.14 2,401.87 Percent of Total 3.46% 0.12% 2.19% 0.01% 2.22% 3.53% Miao 9.45 9.86 422.30 22.80 464.41 1,027.39 Percent of Total 0.07% 0.15% 13.06% 1.23% 1.80% 1.51% Dong 3.70 2.98 229.74 0.31 236.72 951.16 Percent of Total 0.03% 0.05% 7.10% 0.02% 0.92% 1.40% Bai 0.72 0.10 1.44 108.25 110.40 175.84 Percent of Total 0.01% 0.00% 0.04% 5.85% 0.43% 0.26% Hui 3.49 26.80 5.96 1.23 37.59 126.58 Percent of Total 0.02% 0.42% 0.18% 0.07% 0.15% 0.19% Zhuang 18.28 0.41 0.51 0.21 19.31 33.93 Percent of Total 0.13% 0.01% 0.02% 0.01% 0.07% 0.05% Others 168.84 4.01 4.52 1.54 178.80 80.17 Percent of Total 1.18% 0.06% 0.14% 0.08% 0.69% 0.12% Source: Hunan Provincial Ethnic Commission. Most of the minority people are located in three types of “minority counties”. The first type is official recognized ethnic minority autonomous counties. There are 5 such counties in the project areas, accounting for one third of them in Hunan. They are Jianghua, Jishou, Fenghuang, Baojing and Xinhuang Counties. The second type is non ethnic minority county but enjoying the same status and benefits of the minority counties. Sangzhi County is such county. The third type is non minority counties, but with more than 50% of the total population being ethnic minorities. Unlike the second type, they do not have minority county status and are not entitled to the benefits for minority counties. In the project areas, there are three such counties, and they are Jiangyong, Jiangyong and Jiangyong Counties. Of these 9 counties, 2 are from Xiangjiang, 3 from Lishui, and 4 from Yuanjiang. Its total population is 3.59 million, with 2.57 million being ethnic minorities, which accounts for 72%. The total minority population from these 9 counties accounts for 82% of the total minority population in the project areas (3.15million). Of the total population, urban population was 0.91 million, accounting for 25.2%, which is only 74% of the project area average. The rural population was 2.68 million, accounting for 74.8%, which was more than 11.5 points higher than the average of 46 project counties. In other words, these minority concentrated counties have much lower urbanization level than the provincial average. There are 3.69 million mu of farmland in these 9 counties, averaging 1.03 mu per person, which is similar as the provincial average. But the overall economic development is relatively low compared with the project area average or Hunan Province. For example, the per

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capita GDP in these 9 counties was only CNY 9,420 in 2007, which was only 65% of the provincial average and 74% of the PA. The rural per capita income was CNY 3,240, which is only 75% of the project area average and 70% of the provincial average. Along with income disparity, considerable difference also exists in education levels, and employment structure between Han dominated regions and minority dominated regions. For example, illiterate rate was 6.8% among the minority regions in Hunan, which was 25 points higher than that of Han dominated regions; and percent of the minorities with high school or above education was 14.1%, which was 2.24 points lower than that of Han nationalities. Since most these minority counties are located in the high mountains with poor access, considerable poverty exists in these counties. Of these 9 minority counties, 8 are national or provincial poverty counties. There are 990 poverty villages and 0.62 million rural poor, accounting for 22% of the total rural population in the 9 counties, of which the extremely poor account for 23%. D. Ethnic Minorities in Jiangyong County

Jiangyong County is located in southeast of Hunan Province. It covers a total area of 1632.6 km2 with a average density of 156 people per km2. Most areas are mountains and rivers and the farmland only accounts for 10.02% of the total land area (18354 ha) with 1.08mu per capita, which is a little lower than Hunan provincial average. Based on the Hunan statistics in 2008, there are 78844 households with 253,548 people in Jiangyong County, among which: female accounts for 47% and male accounts for 53%. Among the total population, the total population in the project area, namely Xiaopu town of Jiangyong County is 39,451, accounting for 16% of the total population. There are 29 ethnic minorities in Jiangyong and most of them are Yao nationality, which are all native people and live here for more than 1000 years. In 2007, the total ethnic minority population in Jiangyong was 133,000 persons, accounting for 52.5% of the total population, of which the Yao nationality accounts for 98.5%. The overall economic development of Jiangyong County is still lagging behind. In 2007, per capita GDP in Jiangyong was only CNY 7,967, which was lower than the provincial average CNY 6,525 (Table 3-3). The income per capita in the rural area is CNY 3,163, which is lower than Hunan average. Of the total rural 183,340 persons, 75,169 are rural poor (below CNY 900), accounting for 41%. Among them, 4,468 persons are extremely poor with per capita income below CNY 600. Majority of rural poor are concentrated in key poverty villages. Among them, only 50% have road access, 20% have running water access, and 75% have post service, which are significantly lower than the provincial average.

Table III-3: Comparison of Economic Condition between Jiangyong and Hunan Average (2007) Social and Economic Indicators Jiangyong Hunan Percent Total GDP (CNY billion) 2.02 920 0.22% Per Capita GDP (CNY) 7,967 14,492 54.98% Per capita farmland (mu) (1 h a = 15 mu) 1.08 1.30 83.1% Per capita income in rural area (CNY) 3163 3.904 81.0% Per capita income in urban area (CNY) 8016 12,294 65.2% Source: JiangyongStatistical Yearbook 2008 and field survey.

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E. Ethnic Minorities in Project Protected Areas (PPA)

In Jiangyong County, the proposed flood control subproject will directly protect part of urban area in Xiaopu Town, which is defined as the project protected area (PPA). Based on 1 in 20 year return flood protection standard, the proposed flood works will form two protection zones along the Yongming River, including the south protection zone and north protection zone. The two protection zones cover a total land area of 8 km2, including 20 residential communities, all under the jurisdiction of Xiaopu Town.

Xiaopu Town is one of 13 towns in Jiangyong County, including 16 administrative villages and 4 urban residential areas, so it is the town which takes the city as dominant factor and also has the features of village. In 2007, altogether, there are 14036 households and 39451 people live in Xiaopu Town, which are respectively taking up 17.8% and 15.6% of Jiangyong County. Among them, 32.1% is ethnic minority, of which: Yao accounts for 99.6% and Zhuang accounts for 0.4%. The difference of basic economic condition between the rural region and urban region in Xiaopu Town is very large. In the rural region of Xiaopu Town, altogether, there are 12 villages with 3,927 households and 17,197 persons. And, the village inhabitants‟ population is approximately occupying 44%, and per capita farmland is 0.87 mu. In the urban region, altogether, there are 4 residential communities with 10109 households and 22254 persons. This project protection area will cover the most city district of Xiaopu Town and there are 5 villages and 4 residential committees to be included. In PPA, altogether, there are 11278 households and 26676 people, which occupies 67.4% of total Xiaopu Town population (to see tab 3-4).

Table III-4: Basic Conditions of Xiaopu Town Xiaopu Total Total Total Rural Urban Total Per capita Villages Town Households Population Residents Residents Farmland Farmland Rural Area 16 3740 16776 16776 0 16020 0.95 Urban Area 4 9626 21818 0 21818 0 0 Total 20 13366 38594 16907 21818 16020 0.95 PPA 9 10741 26055 4237 21818 3041 0.72 Percent 45% 80.4% 67.5% 25.1% 100% 19.0% Source: Jiangyong PMO and field survey. Of the total population, 56% are from 4 residential committees, including all the institutions and enterprises. The male and female ratio is 52: 48. Among which, 22,254 persons or 56% are urban residents. Of total population, there were 12664 ethnic minorities, accounting for 32.1%. Table 3-5 and Table 3-5 provide detailed information among 9 villages and residential communities within PPA. Of the total population, 56% are non-agricultural population; and among the remaining 44% of rural population, the per capita farmland is only 0.87mu and most of the land is used to plant vegetables and other crops. Sustaining urban expansion and land acquisition of the farmland around the county town is the major reason for this phenomenon. As the centre of Jiangyong County, the relevant second and third industries have been developed in Xiaopu Town. In Xiaopu Town, there are 1819 enterprises in different scale, including 1700 township enterprises, 8 village collective enterprises and 111 private enterprises. The total output value is CNY 414 million, among which: gross value of agricultural output, CNY 74.5 million; and per capita income for the rural population, CNY 4330. The total output of grain is 9872 tons with 250 kg per person.

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Table 3-5: Demographic Profile of Residential Committees in PPA (1) (2007) Streets (Villages) Total Total Male Female Rural Urban Percent of Household Population Population Population Population Population Urban Population Jiangfeng village 334 1246 673 573 1246 0 0 Hejia village 182 616 345 271 616 0 0 Sanyuangong 230 997 566 431 997 0 0 village Tangjia village 172 598 376 222 598 0 0 Chenjiajie village 197 780 528 252 780 0 0 Sifangjing residential 3618 7464 3956 3508 0 7464 100 community Fenghuang residential 2149 5304 2811 2493 0 5304 100 community Yongxing residential 1993 4721 2502 2219 0 4721 100 community Qiling residential 1866 4329 2294 2035 0 4329 100 community Total 10741 26055 14051 12004 4237 21818 83.74 Source: Jiangyong PMO,the data of 2007.

Table 3-6: Demographic Profile of Residential Committees in PPA (2) (2007) Streets Total Per Capita Total Male Female Minority Percent of (villages) Farmland Farmland rural Labor Labor Population Minority (mu) (mu) Labor Jiangfeng village 743 1.13 580 304 276 212 17% Hejia village 407 0.43 450 240 210 129 21% Sanyuangong village 985 1.04 561 342 219 189 19% Tangjia village 508 0.64 408 230 178 138 23% Chenjiajie village 398 0.84 366 185 181 94 12% Sifangjing residential 0 0 0 0 0 2612 35% community Fenghuang 0 0 0 0 0 1697 32% residential community Yongxing residential 0 0 0 0 0 1369 29% community Qiling residential 0 0 0 0 0 1169 27% community Total 3041 2365 1301 1064 7609 29% Source: Jiangyong PMO, the data of 2007.

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In the project protected area, among total beneficiaries, 8105 persons are ethnic minorities, accounting for 29%. The dominant minority groups are Yao, which makes up 99% of the total minority populations in the PPA. These minority persons are entitled with the same rights to education and employment as Han people and have not obvious difference in their economic conditions and income levels. Table 3-7 provides composition of ethnic background among communities in PPA. During the field assessments, a number of participatory assessment sessions, consultations, discussions and interviews were held with the minority population in the PA. These included staff of project PMO, county minority affairs bureau, poverty alleviation office, urban and rural residents, poorest of the poor, entrepreneurs, traders and sellers in the selected communities. Because of the frequent floods and serious impacts, during consultation, the different stakeholders all expressed their strong support toward the project. All of them marked the flood control project as the first priority followed with more income generation opportunities, better local road within the community, better access to credit, better education conditions and lowering education fee, and better health care service.

Table III-7: Ethnic Profile in the Project Protected Areas for Jiangyong Subproject Streets/ Total Ethnic Minorities Han Ethnic Population Villages Population Yao Zhuang Miao Bai Hui Tujia Other Liyujing village 1246 1034 212 212 0 0 0 0 0 0 Xinhua village 616 487 129 129 0 0 0 0 0 0 Chengnan village 997 808 189 189 0 0 0 0 0 0 Zhaishan residential community 598 460 138 138 0 0 0 0 0 0 Yanghua residential community 780 686 94 94 0 0 0 0 0 0 Chunxiao residential community 7464 4852 2612 2600 12 0 0 0 0 0 Mengzhu residential community 5304 3607 1697 1670 27 0 0 0 0 0 Total 4721 3352 1369 1356 13 0 0 0 0 0 Percent 4329 3160 1169 1155 14 0 0 0 0 0 Source: Jiangyong Subproject PMO and field survey.

F. Ethnic Groups and Their Distribution

1. Yao There are 2.70 million of Yao people, mainly distributed in Guangxi, Hunan, Yunnan, Guangdong, Guizhou and Jiangxi Provinces. In the project area, Yao nationality is the largest ethnic minority, which accounts for 99% of the total ethnic minority population in Jiangyong County. Yao ancestors lived in the Yangtze River Basin in history. When in the Qing and Han dynasties, Yao nationality is one part of Wuyiman (or Wuximan) of Changsha. After the southwards immigration, some of them moved to the southwestern mountain areas, thus forming a scene of “big dispersion and small concentration.” Large part of Yao nationality live in tropical areas with a altitude between 1000m and 2000m, where are surrounded with villages around, bamboo forest keeps evergreen and the scenery is very beautiful. Due to different characteristics in the styles of production, living and clothing, Yao nationality has other names and it has more than 20 branches, including Pan Yao, Chashan Yao, Shanzi Yao, Ao Yao, Hualan Yao, Baiku Yao and Hongtou Yao. After the establishment of New China, Yao become the uniform name of these branches. Yao language belongs to the Yao language branch,

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Miaoyao language group, Sino-Tibetan language system. Since long-period contact with other nationalities such as Han, Zhuang and Miao, the Yao people in each region almost understand the Chinese language and part of them know both Zhuang and Miao languages. Limited by the territory, most of Yao people still keep the original culture of hunting, fishing and cultivating. In addition, the exquisite Yao silk (silk produced by Yao people) and Yao clothes, old tales, fair-sounding Yao songs, graceful dancing, unique marriage customs and religious belief are also keep today. 2. Other Minorities

Other ethnic minorities, including Zhuang, are present in PA. These minorities account for 1% of the total minority population and they are mostly individual households who are settled in urban centers. None of these minorities are native to the project area. G. Socioeconomic Characteristics of Minority Communities

For the whole Jiangyong County and Xiaopu Town, because each township and village is dominated by minorities in population, the whole socioeconomic features in these communities present a minority characteristic. Yao and Zhuang ethnic minorities in the project area: Although Yao and Zhuang old people have their own languages, most of the Yao and Zhuang people use their native languages in families; additionally, they can speak fluent mandarin Chinese except that they can understand their native languages, especially the younger generation and those living in towns. Among these ethnic minorities, there are wide spread practice of inter-marriages between the ethnic minority (including Yao, Zhuang and other minorities) and Han. For example, among sample households, half of them are mixed families. These ethnic groups have been living in harmony for many years. They share similar believes in various kinds of nature gods. Therefore, the identities of ethnic background are quite weak among them. People could only identify their ethnic background through their surnames instead of distinctive language and living style. According to the interview with officials from the county poverty alleviation office and ethnic affairs bureau, these ethnic groups have similar economic activities (agriculture and livestock) and demonstrate similar levels of income and economic development. In other words, the level of economic development in different communities is more attributed to different natural environment and infrastructural conditions (such as high elevation, poor access, limited irrigation, and poor soil condition) than the difference of ethnic background, since majority of population are ethnic minorities. The results of sample household survey in the project protected area also confirmed such fact. Table 3-8 presents the socioeconomic characteristics of the sample households in the PPA and the rural sample households in the county. As one can tell, there is no significant difference in terms of income and social economic conditions between Han families and minority families in the project protected area. In fact, the income per capita and education levels among the minority households seem to be higher than that of the Hans. The Han families seem to have larger housing space, more farmland and higher non-farm incomes than that of minority families. On the other hand, the difference between the sample households in PPA and the county average is much greater, which is reflected in most aspects, such as education, income level, living condition, and non-farm income activities.

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Table III-8: Socioeconomic Characteristics of Minorities and Han in PPA Rural Average Category Han Minorities Indicator Unit In Jiangyong (10 sample HHs)1 (20 sample HHs)1 County * General Average HH Size Persons 3.5 4.5 3.8 Per capita annual income CNY 3699 3640 3163

Adult(median) Illiteracy 1.5% 2.8% 9% Primary school graduate % 6.7% 9.5% 48% Education Middle school graduate 36.4% 37.9% 28% High school graduate 52.7% 45.5% 14% Above high school 4.1% 2.3% 2% Cultivated land per person Mu 0.50 0.45 1.08 Grain Production per Person Kg 500 520 554 Agriculture Housing spaces per person M2 91 83 32 Agricultural Inputs per person CNY 3231 3500 3163 Agriculture 2（20.0%） 6(30%) 18792(41%) 10542(23%) Income Animal Husbandry 1(10.0%) 5(25%) HHs (%) Source Non-Farm (by being employed 16501(36%) for construction, factories, 7(70.0%) housekeeping, restaurants, etc.) 9(45%) Farm vehicle 24% 21% n.a. Motorcycles 46% 40% n.a. Assets Air Conditions % 26% 25% n.a. Color TV 88% 92% n.a. Mobile Phone 65% 52% n.a.

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

Poverty: In Jiangyong County, there is considerable rural poverty. According to the poverty rate in the similar areas nearby, there were with 75,169 persons living below the poverty line with per capita annual income below CNY 900 in Jiangyong County in 2007, which accounts for 41% of the total rural population, of which: the number of poor ethnic minority people is 36,801, accounting for 48% of the total poor population. Relatively speaking, the urban poverty population occurring rate is 12.8％, which is lower than rural poverty population occurrig rate (the urban poverty line is the income per month per capita less than CNY 200 and the income per capita is CNY 2400). Income: In Jiangyong County, the average per capita income among rural population in 2007 was CNY 3,163. About 30% of the income came from non-farm sources. In PPA, which covers large areas of Xiaopu Town, the annual income in rural areas of Xiaopu Town is CNY 8016, which is 43.3% higher than the county average. The better infrastructure and easy access to non-farm based income activities in the urban residential communities might explain such difference, which was confirmed from surveyed sample households in PPA. Among 30 sample households, per capita income was CNY 3,670, with most of the income coming from

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non-farm sources. Among the sample survey, the per capita income of Han families is CNY 3699, which is a little bit higher than that of the ethnic families (CNY 3640). Education: In PPA, according to the sample survey (Table 3-9), there is some difference between Han families and minority families in terms of their education background. For example, minority families have higher illiterate rate or 2.8% compared with 1.5% among Han families. Han families seem to have higher number of people with high school education (52.7%) than that of minority families (45.5%). However, if comparing the education conditions among the rural people in Jiangyong, such difference is not significant. In other word, both Han people and minority people from PPA have much better education conditions compared with that the county average. For example, the illiterate rate in the county was 9%, which is more than 3 times higher than the people in PPA (2.4%). The percent of people having high school or above education among PPA was 47.9%, which is 3.0 times of that in the county. Agriculture: Because most village population takes plantation as their main income source, effective irrigation is an important index for farmland production. There are 635ha farmlands in Xiaopu Town and 90% of them are irrigated farmland. In Jiangyong County, there are 13650ha irrigated farmlands, about 40% of the total farmland (34500ha). Among them, there are 7200ha farmlands, which can be irrigated all the year, which account for 21% of the whole farmlands. STIs/HIV/AIDS Transmission: Fortunately, no HIV/AIDS cases were found or reported in the project county. The construction of the flood control works will bring quite a few construction workers to the project area, although most unskilled laborers will come from nearby villages. These workers will unavoidably interact with local minority population. Therefore there would be increased risk of exposure to HIV/AIDS and STIs for minority population. Gender Aspects: China is committed to gender equality and women and men have enjoyed an equal status by law. Female participation in agricultural activity is high in China, as it is in many parts of the world. In the communities surveyed3, the basic household principle is one of men and women sharing the farming work. Women also undertake most of the additional childcare and household maintenance tasks as well as looking after the livestock. Sharing of financial resources was also common, especially where most income came from agriculture. However, one visible difference between men and women in the project affected communities is their education background. According to surveyed individuals, only 30% of female labors have middle school or above education and 16% of them are illiterates or semi-illiterates. In contrast, for male labors, 70% of them have middle school or higher education, and 5% of them are illiterates or semi-illiterates. Because of this difference, there is considerable difference in terms of income generation skills. In general, the number of male labors with specific income generation skills is almost doubled that among female labors. Female labors are mainly limited in small trade in local area, while male labors tend to be concentrated in construction, transport, business, and manufactures. According to Jiangyong Women Federation, the number of women who went out as migrant labors is relatively small compared with other counties, which is mainly contributed by low education background, traditional attitude, lack of skill and language barrier (this is mainly for middle aged women). Because of such constraint, in group discussions, most of female participants ranked skill training as high priority among various activities.

3 2 group discussions were held with women – 1 in rural village and 1 in urban residential committees. Most participants are minorities.

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H. On Going Minority Development Programs

In autonomous region/prefecture/county in China, all activities are minority development oriented. In other words, central task of the autonomous governments is to promote minority people‟s development by an overall master plan and sector development plans of ethnic minorities. The sector development plans include:

 poverty reduction and development plan  agricultural and forestry development plan;  industrial development plan;  women‟s development plan;  children‟s development plan;  educational development plan;  transport development plan;  public health development plan; and  others. These plans are often linked with various programs, e.g., land conversion program is linked with forestry development plan and food for work program in linked with poverty development plan. Budgets for implementing these plans, as well as for other activities, are pre-determined and specified. In other words, there is hardly any flexible money available for additional activities imposed by such project like this ADB road development project4. In addition to the sector development programs, there are specific minority development programs in the project counties that are administrated by Jiangyong Ethnic Minority Affairs Bureau. The programs are formulated based on the needs of each county through bottom-up and top-down approaches. Minority development programs include the provisions of providing social infrastructures (primary/secondary school, health clinic, housing upgrading, and recreation facilities), economic infrastructures improvement (rural road, water supply and electricity connection), and capacity building (training on farming, and training on income-generating activities with microfinance). The minority development programs often join hands with poverty reduction programs. Jiangyong obtains specific minority development oriented support for all sectors from higher-level governments. In addition, the minority affairs sector itself, had also independently implemented a number of development programs with a total investment of CNY 1.20 million each year, which included CNY 1.00 million from national grant to be used for supporting minority villages in their poverty alleviation efforts, such as food and clothing, village infrastructure and production development; and CNY 20,000 from Provincial Ethnic Affairs Commission each year to be used to provide support for education and health care for minority people. In addition to these government support, Jiangyong County also received a number grants from various NGOS, such as those from Hong Kong, Taiwan and other counties, which provide funding for rebuilding school buildings, improving health, water resources as well as repairing churches (Table 3-9).

4 Specifying budget uses is also an anti-corruption measure

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Table 3-9: Minority Development Programs in Jiangyong County (2001-2007) Programs Sponsor Investment (CNY) Implementation Agencies Agencies Population development activities National Grant 300,000 Jiangyong County Minority Affairs Bureau Rural infrastructure – electricity, road, and National Grant 400,000 Jiangyong County water Minority Affairs Bureau Food and Clothing for Minority Villages National Grant 250,000 Jiangyong County Minority Affairs Bureau Minority Children Education Support National Grant 150,000 Jiangyong County Minority Affairs Bureau Minority Heath Care Assistance Provincial Grant 50,000 Jiangyong County Minority Affairs Bureau Rural Education Assistance Hong Kong, 50,000 Jiangyong County Taiwan NGO Minority Affairs Bureau Total 1,200,000 Source：Jiangyong Minority Affairs Bureau (JMAB).

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IV. PROJECT IMPACTS ON MINORITIES

A. Past Flood Impact The floods taken place in the first ten days and second ten days of June, 1985 caused an economic loss of CNY 230 million (the price of that year, the following keeps the same) in Jiangyong County. The floods occurred during the period from the last 10 days of June to the beginning of July of 1985 brought an economic loss of CNY 350 million. The floods taken place in 1997 caused an economic loss of CNY 260 million. During the site survey and interview, impacts of the flood in terms of both economic loss and personal experience were described by different groups of participants, which were provided in Table 4-1.

Table 4-1: Description of Flood Impacts by Different Groups in Project Area

Groups Actual Flood Impacts to the Communities

Rural Areas  All farmland were flooded with no harvest; Group (5 male  Small shops and businesses were seriously affected; and 5 female)  Articles in the house flooded away;  Schools were interrupted; Water remain there for 2 weeks; Urban Areas  Water came up to second floor of residential committee office; Group (5 male  Residents in lower areas have to be relocated since their houses were damaged; Some of and 5 female) them had to move up many times;  residents are afraid that floods rise; Small business  Since flood came too quick, inventory of clothing store could not be moved; persons  Small restaurant were flooded, and all belongs were washed away;  Repairing the damaged house by flood; Factory  Due to lower location, the plant was affected by flooding each year, including both structures and products;  During flood season, the factory had to have someone monitor flood situation every night.  All foundations of factory buildings were raised, which increased total construction cost.

Sources: Field visit and small group discussions.

Among the poor people in PPA, frequent flood is one important factor for causing such poverty. According to the estimate made by Jiangyong Poverty Alleviation and Development Office, about 30 percent of rural poor in Xiaopu Town were caused by 1998 flood. If there were no flood in those communities, the poverty incidence would be much lower. Such impact by the flood is reflected in the following aspects:

 Frequent flood would result in loss of living and production assets. The replacement of such assets will increase the family financial burden and keep them from improving their current poverty status.

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 The flood would also cause reduction of output and loss of revenues for affected enterprises due to interruption of their normal production for emergency activities, and damage of their production equipments, which would lead to lower income among affected employees.

 The farmland within the protected areas, particularly relatively high yield vegetable land is frequently flooded, which will damage the crops, wash away top soil, and damage related facilities, which will result in lower income among local farmers and keep them in poverty conditions.

 For the vulnerable people living in the dilapidated houses, the flood will pose continuous life threat and increase their anxiety, which need to give more attention.

B. Project Benefits for Different Beneficiaries

The proposed Jiangyong Flood Control Subproject will benefit all people in PPA, which include urban and rural, male and female residents, industrial managers, staff of the enterprises and institutions, local government officials and small shop owners. Majority of project beneficiaries are ethnic minorities. The Project will produce social benefits for them in the flood-prone area by reducing the risks to personal safety, livelihood, and assets. For rural and urban residents, reducing of flood damages to their crop, houses and assets mean more savings and higher income in future. Community interviews strongly suggested that the residents forgo investment in higher income activities such as greenhouse, livestock production and house improvements for fear of the potential loss during floods. Frequent house reconstruction after flood drains their capacity to accumulate financial resources. Removal of the flood danger from the protected areas will create a safer environment for both urban and rural residents so that they could sleep better during the wet season, and worry less about the safety of their family members and security of their limited physical assets. The participation in the Project construction by unskilled labours will directly increase their cash income, which could help them build their savings and improve the poverty conditions. The poorer residents will benefit through increased security provided by the Project which will mitigate the floods and assist the local government financial capacity. Confidence that public infrastructure investment will be more secure will support more investment in these locations. The improved business environment will encourage urban development, during which both local communities and urban residents will significantly benefit. For business and enterprises, the improved flood protection mean the reduction of potential damages and interruptions caused by floods, which will result in higher profits for the companies, more wages for the employees and more tax revenues for local governments. For many state owned enterprises with large land areas, better protection will have more chance to attract outside investment, so jobs can become more secure and the business can expand, thus leading to more employment.

In addition to economic benefit, group discussion among stakeholders also identified a range of non-economic benefits by the Project, which include: (1) a better urban environment along the river front with improved drainage and removed garbage; (2) improved transport and access for local residents; (3) created a safer environment for local residents, particularly for children and elderly; and (4) enhance non-farm employment capacity through participating in Project construction, and job skill trainings for affected communities. Even for those people outside the PPA, reduction of flood impacts in the county town mean less interruption of market activities, and less interruption of government programs and services, which are critical for most rural poor.

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The project itself is an ethnic minority people‟s development project because it will direct provide flood protection to the political, economic and commercial center of Jiangyong County. According to the social and poverty assessment, there are 11278 households and 26576 persons, who will be direct beneficiaries of the proposed project. Among them, 8105 persons or 39% are ethnic minority people, which including 14810 Yao people. During the survey, small group discussions were held among men and women in the selected communities. Based on their own experience, different group individuals identified various benefits to be brought to the minorities, which is presented in Table 4-2.

Table 0-2: Positive Impacts Identified by Different Groups of Beneficiaries

Groups interviewed Positive Impacts to be Brought by the Subproject

Rural area  Prevent soil erosion Male group  Protect lives and houses from flood  Bring employment and other business opportunities  Promote local economy Rural area  Lives being secured; Female group  Enjoying the life by keeping flood away Urban area  Lives and assets could be protected Male group  Businesses could be run without fear  Better environment and better sanitation  Unnecessary to worry about the floods Urban area  House and other assets could be protected Female group  No need to worry about moving belongs during rainy seasons

Small business persons  Business could remain open all the time.  Reduce economic loss caused by the flood  Have a better environment for business. Factory (Jiangyong  Improved infrastructure benefit enterprise development Construction Installation  Provide business opportunity to participate in project Company)  Improve soil conservation and reduce pollution in the rivers

Sources: Field visit and small group discussions.

Based on discussions with various stakeholders, it seems that the following short term and long term economic impacts could be expected from the Project: Short term economic and development impact:  Employment during construction. About 0.19 million working day non-technical labors, and the payment is about 5 million RMB yuan. At least 40% labor and 2 million RMB yuan payment will be given to ethnic minority population.  Commercial activities during the construction. These will include groceries, provision of food and accommodation services.

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 Provision of construction materials. This could enable some minority people, where the expressway crosses, to engage in excavation and transportation of stone sand earth. Mid-term and long-term (after construction period) potential indirect economic impacts include:  Increased agricultural production and productivity through reducing flood damages and increasing farming input, such as building greenhouse vegetable, and making crop structure adjustment, as well as income skill training under both minority development and resettlement programs  Increased non-farm economic activities by providing safe business environment, non-farm skill training, and making capital available through land compensation and employment opportunities during construction  Flood work-related employment. The maintenance of completed dikes and facilities will employ some people to do regular maintenance, landscaping, cleaning, etc.  Increased employment through increasing real estate development and commercial activities along the river front. These potential impacts are expected to benefit men and women, urban and rural, Han and minorities in PPA. Social and Poverty Analysis showed that women were conscious of the safety of family members. Also, women in the immediate impact area (area along the construction site) will receive more benefits from providing catering services and other social services to the large number of workers during construction of dikes. The long-term trends for women are very favorable, such as improved female education, enhanced cultivation techniques, greater emphasis on livestock raising in poor areas, and increasing urban migration.

C. Potential Negative Impacts of Resettlement9

During the small group discussions held in the selected communities, different groups of individuals also identified a range of potential negative impacts to be brought by the proposed subproject based on their own interests. Among them, the land acquisition, demolition of houses and relocation of population were considered the major negative impacts by the project. According to the detailed impact survey, the construction of the flood control project will acquire a total of 3.5 ha land areas. About 37% are farmland. The remaining land areas are 63% ponds, residence land and state-owned land. During the construction period, temporarily occupied lands will be 28.19ha. According to the per capita cultivated land in the village affected, the permanent land acquisition will directly affect 39 households of 132 persons. In PPA, 32 persons need to be resettled. In average, each affected person would lose about 0.014mu farmland, namely 1.68% of their existing cultivated land. In addition to the land acquisition, the houses with an area of 7278m2. Among which, 93.8% of houses are brick and concrete structures or brick and timber structures.

9 This part is compiled based on Jianghua County Resettlement Plan-Appendix XX.

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According to the investigation, the project permanent land acquisition will affect 86 ethnic minority people, accounting for 65 of the total affected population (132 persons) by the project. And all of them are Yao people. Based on the household conditions, the proportion ethnic minority people take up is large. Most of them have lived here for generations and some of them migrate here by means of marriage. Ethnic people have been living harmoniously with Han people for so long a time and their relation is good. As regard to the production struction of the ethnic families, they mainly do business and work outside. And major income of the agricultural population also does not depend on the land, but representing a multi-directional structure. All ethnic minorities enjoy equal rights with Han nationality in many aspects such as land distribution, politics and children’s learning. In addition, in some other aspects (taxation etc.), the ethnic minority people also enjoy preferential policies, which the Han people can not. The situation of the project affecting the distribution of ethnic minority people is presented in Table 4-3.

Distribution of Ethnic Minority People Affected by Jiangyong County Urban Flood Control Project

Table 4-3

Yao Nationality Han

Total Township Village County Number of Affected Percentage Percentage (Town and (Residential Accounting Accounting Remarks (District) Household Population Number of Number of Sub-district) Committee) (Person) for the for the Persons Total Persons Total Population Population （%） （%）

Jiangyong 1 39 132 86 65.1 46 34.9

Xiaopu 3 39 132 86 65.1 46 34.9

Tangjia 8 30 20 66.7 10 33.3 Village

Hejia Village 17 47 31 66.0 16 34.0

Chenjiajie 3 13 6 46.2 7 53.8 Village

Sanyuangong Village 9 32 24 75.0 8 25.0

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Jiangfeng Village 2 9 5 55.6 4 44.4

Following the ADB requirements, draft resettlement plan has been prepared by PMO with assistance from the design institute. The proposed compensation standards are in line with the PRC Land Administration Law, Large and Medium-Sized Hydro and Power Project Land Acquisition Compensation and Resettlement Regulations, Urban Houses Demolition Administrative Regulations (1998) and the ADB‟s Policy on Involuntary Resettlement, particularly the Hunan Provincial Implementation Decree adopted in 2000, which stipulates the regulations for land compensation, resettlement subsidies, young crop compensation, house compensation and other measures to carry out resettlement. According to the policy, the total compensation (land compensation, resettlement subsidy and young crop) will be set at CNY21254 per mu for irrigated farmland; CNY14645 per mu for dry land, CNY 20736 per mu for pond and CNY 18318 for per mu residence land. Structures to be demolished will be compensated according to the compensation standard of the local government. And the scope of compensation is as follows: brick and concrete structures per square meter is CNY 318; brick and timber structure per square meter is CNY 244. In terms of rehabilitation for house demolition, for affected urban households, they will be provided with two options. One is to provide with replacement housing in nearby location completed with infrastructure and modern facilities; the other is to provide with compensation. There will be no reduction in house compensation for depreciation, and people will be allowed to salvage materials from their old houses. For land loss farmers, the economic rehabilitation will be carried out with a combination of land readjustment, developing greenhouse vegetable and animal husbandry. Based on extensive consultation, detailed economic rehabilitation plans have been developed for all affected villages, which are included in the Resettlement Plan. The total cost of resettlement is estimated at CNY 6.9008 million. The HPWR and Jiangyong PMO will ensure that the resettlement entitlements are provided to the people affected prior to the ground leveling and demolition commencement. Land compensation and resettlement subsidy will be paid to the affected village collectives. Housing compensation and compensation for young crops and other assets will be provided directly to people losing those assets. Compensation for infrastructure such as electrical and communication fixtures will be paid to the concerned government departments for restoration. The project implementation will produce a certain impact on socio-economic factor: 1). Within the project affected area, Xiaopu Town is the county town of Jiangyong County, where the infrastructure conditions are good and local farmers have a lot of opportunities in non-farm employment, such as daily labor and small business. Most those surplus labor forces have moved into the second and tertiary industry or individual business, gradually moving out of reliance in the land. According to the investigation, in the project affected area, there were 15565 employed labor forces, including 6917 non-agricultural population of industry, building construction, traffic, wholesale and retail, accounting for 44.43% of the rural labor forces. Analysis from the incomes structure, the annual total income per household of the affected households in 2004 was RMB 8396 yuan, including RMB 3300 yuan for the agricultural incomes, accounting for 39.3% of the total income. The investigation shows that in spite of the land loss, the local farmers will suffer the decrease of agricultural incomes, however, due to the small proportion for plantation in the total incomes, they will have little impacts on their production and living.

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2). For farmers with land plantation as their main livelihood resources, the land loss will result in the loss of complete or partial means of production, however, as the project is linearly distributed along the Yongming River, the land acquisition of the project will result in not big influence on the agricultural production of resettlers on average, each affected village will lose their land of 3.87mu. For 11 affected village groups, all of them would lose less than 1.68% of their land holding. However, for those households directly affected by land acquisition (18 households and 68 persons), every affected person will lose about 35.11% of their land holding. According to the on-spot investigation, the land acquisition will affect 11 villager groups. All villagers‟ groups have the cultivated land occupied 3.7mu at best and the quantity of land occupied in other groups is between 0.24mu and 3.4mu. Most affected farmers would have limited impacts due to land acquisition. For such impact, it is planned that local farmland adjustment will be adopted as basic rehabilitation strategy, which will not impact the traditional production mode and livelihood of the affected persons, and can restore, or even develop their living standard within short period of time; the cash compensation can be adopted, which will be paid directly to the affected farmers to be used to undertake other agricultural activities to create revenues (such as adjusting plantation structure and developing greenhouse vegetables) or other non-agricultural activities to create revenues (such as development of livestock breeding). These activities will increase their incomes and mitigate acquisition impacts so that their income and livelihood could be restored and improved after land acquisition. 3). For relocated households, the process of moving and decorating new houses will consume certain manpower and material resources for the affected households, which need to be considered by the project sponsors. The PMO will, according to the relevant policies, make compensation to their loss of moving and traffic costs, on site infrastructure costs for the new housing plots, and necessary transfer allowance during relocation and rehabilitation. In addition, the PMO and the local village committees will provide necessary assistance in the process. Therefore, the impacts from the project will be reduced to the minimum. 4). For the relocated enterprises and institutions, relocation needs a period of time or a certain procedure to identify new spaces, which will affect normal operation for a period of time and will result in the loss of operation incomes for them. According to the investigation findings, 5 affected enterprises and institutions (of which: one enterprise has went bankrupt) have the auxiliary administrative houses and production houses occupied, so their production and operation have not big impacts. Furthermore, they can obtain the relocation subsidies, the compensation for shutdown loss during relocation and reconstruction period and for production equipment, and the assistance of the local government and relevant departments, and so their normal production and operation shall be recovered or developed within the short time. The project construction will bring certain influence on the residents and businesses within the project area, but the impact is little and after completion of the project, it will create favorable conditions for further development of Jiangyong County.

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D. Expectations and Concerns

In March of 2006, the resettlement survey team, under the cooperation of the governments at all levels in the project area, conducted a detailed survey on the basic social economic conditions of the affected households and the relocatees‟ willingness. 1) Investigation on the Basic Conditions of Affected Households For the investigation on the basic conditions of affected households, a sampling survey in site was made to the affected households. After filling the questions of survey form, the affected households made signature for confirmation. 26 households within the affected area of the project were selected as the sample, accounting for 31.3% of the total affected households. The samples are representative and typical, and can be used for basis for the project impact analysis. For the detailed sample survey distribution of removed households, see Table 4-4.

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

Table 4-4

Town Number of Affected Total Affected Sampling Sampling Remarks Villages Households Households Percentage （％）

Total 7 83 26 31.3

5 39 26 66.7

Tangjia Village 8 4 50.0

Hejia Village 17 12 70.6

Chenjiajie Village 3 3 100.0

Sanyuangong Village 9 5 55.6

Jiangfeng Village 2 2 100.0

2) Investigation on relocatees‟ willingness and attitudes Investigation on relocatees‟ willingness adopts the mode of sample survey with a sampling ratio of 31.3%. The resettlement planning team prepared a survey form. The different levels of governments organize people to distribute survey forms in the project areas and ask affected people to fill up. In the affected area of the project,

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there are 26 survey forms issued to the relocatees, and 24 effective forms returned with an effective ratio of 92.3%. The sample survey and analysis shows that: ① Household Size of the affected households: 3.08 persons / family in average in the affected area of the project, including 2.19 persons for labor forces with age 17~60, 0.42 person of younger than 17 years old and 0.46 person of older than 60 years old. ② Gender Percentage: The male/female ratio in the project area is 1.05：1. ③ Age makeup: The labour forces at age of 17~60 possess 71.2% of the total population, 13.5% for younger than 17 years old and 15.3% for older than 60 years old. ④ Ethnic Background: The 35% of the affected people are classified as Han Nationality, and 65% as the minorities. ⑤ Educational level: In the affected area of the project, every 100 persons, there are 3 persons with educational level of higher than senior middle school, 14 persons with educational level of senior middle school, 32 persons with educational level of junior middle school, 16 persons with primary school and 15 illiteracies or half-illiteracies. ⑥ Housing area per capita: The housing area for every household is 87.54m2 and that per capita is 28.45m2. The structures of houses are mainly brick-concrete and brick wood structure. ⑦ The land contracted by the collective: In countryside, each household contracts 2.34mu of cultivated land, averaging 0.76mu per capita; The grain yield of each household is 1249kg in average 405.46kg per person. The livestock per household is 5.92 and the poultry is 15.2. ⑧ Family property: For every 100 households, there are 115 sets of TV (including color TV, 59 sets), 160 electric fans, 19 refrigerators and 38 washing machines. ⑨ Economic incomes and expenditure: Each household has an annual total income of RMB 8396 yuan, averaging RMB 2726 yuan per capita; Each household has an annual total expenditures of RMB 7983 yuan, the annual expenditure per capita is RMB 2592 yuan; Each household has an annual net income of RMB 7003 yuan, averaging RMB 2274 yuan per capita. For the total basic conditions of the affected households by the project, see Table 4-5.

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

Total of Samples (26 Minority Samples (17 households) Items Unit households) Indices per Indices per Total household Total household

I Affected household size

1.Total Population of Household person 3.08 80 3.12 53

Including: female person 1.5 39 1.53 26

2.Labor forces of 17~60 years old person 2.19 57 2.06 35

3.Population younger than 17 person 0.42 11 0.47 8

4.Population older than 60 person 0.46 12 0.59 10

II Educational level

1.More than senior high school person 0.12 3 0.12 2

2.Senior high school person 0.54 14 0.47 8

3.Junior high school person 1.23 32 1.24 21

4.Primary school person 0.62 16 0.65 11

5.Non-educated person 0.58 15 0.06 1

III Nationalities

1.Han person 1.08 28 0.47 8

2. Ethnic Minority person 2.00 52 2.65 45

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

Total of Samples (26 Minority Samples (17 households) Items Unit households) Indices per Indices per Total household Total household

IV. Housing area

1.Housing area per household m2 87.54 2276 88.2 1499.4

2.Housing area per 2 capita m 28.45 2276 28.29 1499.4

V. Agricultural production

1.Contracted plantation area per household mu 2.34 60.86 2.32 39.44

2.Plantation area per capita mu/person 0.76 60.86 0.74 39.44

3.Grain yield kg 1249 32469 1238 21041

4.Grain occupation per capita kg/person 405.46 32469 396.7 21041

5. Livestock 5.92 102 6.02 102

6. Poultry 15.2 395 16.4 102

VI. Household property

1.TV set 1.15 30 1.06 18

Including: color TV set 0.69 18 0.71 12

2. Electric Fan set 1.6 42 1.29 22

3. Refrigerator set 0.19 5 0.24 4

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

Total of Samples (26 Minority Samples (17 households) Items Unit households) Indices per Indices per Total household Total household

4. Washing machine set 0.38 10 0.35 6

VII. Annual total income 8396 218296 8403 142851

1.Agricultural income yuan 3300 85800 3250 55250

2. Animal husbandry income yuan 265 6890 272 4624

3. Non-agricultural income yuan 4831 125606 4881 82977

VIII. Annual consumption expenditure yuan 7983 207558 7992 135864

1.Living expenditure yuan 4593 119429 4601 78217

2.Production expenditure yuan 252 6559 248 4216

3.Other expenditures yuan 3137 81570 3143 53431

IX. Annual net household income yuan 7003 182078 7086 120462

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The sample survey and analysis shows that: ① Have knowledge with the project: 100%of the affected people claimed that they had knowledge of the project. ② Sources of information: 96.4%of the affected people get known from the investigation persons and 1.3% from the residents of the neighboring villages. ③ Support attitude: All affected people hold an attitude of supporting to the project. ④Views on Impact: 87.5% of the affected people think the flood control benefit is obvious, and by the way of the reasonable compensation, the negative impacts can be alleviated; 8.3% think the flood control benefit is obvious, while the negative impacts are big; 4.2% think the construction of the flood control project will have no impact on them, but land acquisition and house demolition will bring some negative impacts on them. ⑤ Resettlement Approach: villagers in the affected villages hope they can demolish and build houses by themselves and the government will arrange residential land uniformly. ⑥ Economic rehabilitation: 9.4% of the affected people ask for cash compensation, and 90.6% ask for compensation through land adjustment. Through a series of public evaluation meeting, and after collecting ideas from impacted ethnic minority community, discussion and interviews, their general feeling to this project is positive, especially the convenience of transportation. They wish the basic infrastructures to be developed, such as medical clinics, primary and middle school, power, power supply, etc. These will be implemented according to the plan by Poverty Relief Office and Ethnic Affairs Bureau. They also express their requirements in accepting training in the aspect of agriculture such as economic crops and in providing income increasing opportunity such as peasant worker who engaging in flood control project, and small merchants along construction site. All the groups interviewed expressed their earnest desire to carry out the flood control project as soon as possible, and to build a wide embankment so to play multiple functions of the proposed project. The main comments and suggestions from the stakeholders include:  Building a wider and higher embankment open to traffic;  Commence the work as soon as possible;  For potential resettlement impacts, providing information early and adequate compensation as well as employment opportunities;  Providing employment opportunities during construction;  Providing credit for small business. During survey, the interviewed people made selection and sequence arrangement to rural and urban development requirements. The first five projects which are needed urgently are selected by them. Within the investigated groups, there are six groups to list this project as the most precedent project, and the others, in sequence, includes: providing more income generating opportunities, more convenient traffic within communities, improving educational condition, lowering down the tuition, more convenient credit conditions, better medical care service etc.. For the investigation result, please see Table 4-6.

Table 0-6: Priority needs Perceived by from the Community

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Residential Communities Gender 1 2 3 4 5

Better Male Proposed More income generating Better road Better sanitary medical project opportunities conditions facilities care service

Jiangfeng Village Better education Proposed More income generating Better road condition Female More credit and project opportunities conditions lowering down the tuition

Better education Providing Proposed More income generating Better road condition and non-farm Male project opportunities conditions lowering down the technical tuition training Hejia Village Better education Proposed Better education condition Better medical condition and Better Female sanitary project and lowering down the tuition care service lowering down the facilities tuition

Better education Better Proposed condition and Better public project Better road conditions lowering down safety medical care service the tuition Sanyuangong Male Village

Better Female Proposed More non-farm job chances Better road More credit medical project conditions care service

Better Tangjia Village Male Proposed More income generating Better road Better sanitary medical project opportunities conditions facilities care service

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Better education Female Proposed More income generating More credit Better road condition and project opportunities conditions lowering down the tuition

Better education Providing Male Proposed More income generating Better road condition and non-farm project opportunities conditions lowering down the technical tuition training Chenjiajie Village Better education Better Proposed Better education condition Better medical condition and Female project and lowering down the tuition care service lowering down the sanitary facilities tuition

Better Proposed education Better public Better Male Better road conditions condition and medical project safety Sifangjing lowering down care service Residential the tuition Community Better Female Proposed More income generating Better road More credit medical project opportunities conditions care service

Better Proposed More income generating Better road Better sanitary Male project opportunities conditions facilities medical care service

Fenghuang Better Residential education Community condition Female Proposed More income generating More credit Better road and project opportunities conditions lowering down the tuition

Better education Proposed More income generating Better road condition and More Male non-farm project opportunities conditions lowering down the job chances Yongxing tuition Residential Community Better education Better Female Proposed Better education condition Better medical condition and sanitary project and lowering down the tuition care service lowering down the tuition facilities

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Better education Better Proposed Better public Male project Better road conditions condition and safety medical Qiliang lowering down care service Residential the tuition Community Better Female Proposed More non-farm job chances Better road More credit medical project conditions care service

E. Poverty Reduction Measurement

Rural poverty is the major poverty problem of Jiangyong County. There are 75,169 persons under the poverty line. Among them, 4468 persons are extremely poor with per capita income below CNY 600, accounting for 41% of the total rural poor population in Jiangyong County. Most of the poverty people are located mountainous regions with limited farmland, harsh natural conditions, and poor accessibility. Some of the rural poverty is caused by frequent flooding since part of Jiangyong is located in one of heavy rainstorm areas in Hunan Province. However, since the project protected area covers mainly urban area, the majority of poverty persons in PPA are urban poor living below the minimum living safety line. There are only 1418 rural poor in PPA, accounting for 1.9% of total rural poor persons in Jiangyong County. The main cause of rural poor in PPA is limited of farmland due to urban expansion, frequent flood and lack of non-farm employment opportunities. Most these rural poor in PPA are vulnerable people who lack of labor or disabled. For the Jiangyong County, since rural poverty is relatively significant with10.5% and since it is one of provincial key poverty counties, there is on-going poverty alleviation effort funded by both central and provincial governments. Under the leadership of Jiangyong Poverty Alleviation Office, there were about CNY21.13 million poverty alleviation funds allocated to Jiangyong County each year for poverty reduction efforts, with CNY 13.36 million as poverty reduction grant and CNY 7.77 million as work -relief program. About 70 % of these funds were used for improving basic infrastructure, promoting economic development, and conducting technical training among key poverty villages. The funded activities include village roads, drinking water, school building repairs, irrigation facilities, as well as introduction of various cash crops and technical trainings on planting, animal husbandry, and non-farm skills. Because of such efforts, the poverty population has been reduced steadily in the past 22 decades. The extremely poor population – people who lack basic food and clothing was reduced by 75,169 persons between 1986 and 2007. The share of extreme poor people was reduced from 20.6% in 1986 to only 2.4% in 2007. Table 0- indicates such sharp decline during this period. Table 0-7: Change of Poverty Incidents in Jiangyong between 1986 and 2007 Year Extreme Poor Percent of Total Rural Poverty Percent of Total Rural Population Rural Population 1986 32,170 20.60% n.a. n.a. 1993 13,404 8.00% n.a. n.a. 2003 7,596 4.00% 150338 70.75% 2004 7,149 3.80% 127787 62.25%

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2005 6,255 3.15% 112754 54.00% 2006 5,362 2.80% 97720 45.50% 2007 4468 2.40% 75169 41.00% For urban poor in Jiangyong, including those urban poor in project protected area (PPA), the main approach of poverty reduction is to deliver Minimum Living Allowance (MLA) so that their average monthly income could reach urban minimum living safety line. The process of identifying those who are under the poverty line is increasing transparent. It begins with application by the poor people, reviewed by local communities and disclosed in public three times for comment before finally adopted by local civil affairs bureau. According to estimate by Jiangyong Civil Affairs Bureau, in 2007, there were 7,500 persons in Jiangyong County are provided with living allowance subsidy, with a total of CNY 4.20 million, averaging Y560 per person per year. Among the urban poor, losing regular jobs from state owned enterprises is one main factor. Based on the statistics of Jiangyong Civil Affairs Bureau, 75% of persons who apply for the minium living guarantee were from the state-owned or collectively-owned enterprises. In order to address such problem, measures like providing re-employment trainings and various public service positions, such as road cleaning, security guards, traffic assistants, and so on. For those positions, more attentions are given to the aged unemployed workers with less education or skills. Other measures such as reducing education fee for their school age children are also adopted by relevant district agencies and implemented by officials from town government. The strength of poverty alleviation effort in China lies in its effective administrative structure and dedicated staff. It was reflected during the process of flood protection and disaster relief activities. When flood was coming, staffs from town and residential committee (village) were responsible to help those vulnerable peoples move to safer places, collect and distribute relief goods, and assist them throughout rehabilitation efforts. The construction of the proposed project will (1) effectively enhance the capacity of flood control by the local communities, and reduce the loss from the flood, so to promote the production and income of the poor; (2) provide employment opportunity for those with no specific skills, especially the poor during the construction; and (3) promote the development of the urban areas, increase opportunity of employment so to reduce the poverty population.

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V. ACTION PLAN

A. Specific Measures/Activities

Tables 5-1, 5-2, and 5-3 present the proposed measures, targets, budget and implementation timing. The proposed measures consist of the following three categories:  Measures to avoid or mitigate adverse impacts  Measures to enhance positive impacts  Measures to ensure project benefits accrue to affected minority populations in a preferential or in an equitable manner The scale and scope of the proposed measures are subject to modification from time to time depending on the finalization of project design and various other factors.

1. Mitigation Measures

Construction-related Disturbances. The proposed flood control works and their related facilities will directly affect 16 administrative villages and 4 urban residential communities in Xiaopu Town. Some disturbances might occur during project implementation. The total minority population affected by construction noises and other hazards from these residential committees or villages will be about 7000. The environmental impact assessment considers and addresses some, if not all of these potential health hazards identified. For instance, nighttime construction is prohibited thereby mitigating the issue of excessive noise for people living close to the expressway construction sites. The construction of crossings will address the concerns of road safety. The restoration of damaged irrigation and drainage systems will preserve surface water sources of local people from pollution caused by construction.

HIV/AIDS and STIs Awareness and Prevention: although Jiangyong County is not a high risk area for HIV/AIDS, in order to ensure that Jishou will continue free of HIV/AIDS, Jiangyong County CDCs (Centre for Disease Control), in accordance with the PRC Law on Prevention and Treatment of Epidemic Disease, will take measures to prevent the spread of HIV/AIDS and other STIs. The project PMO and the contractors will support CDCs to take prevention measures for workers and local communities during construction and to transport operators and truck drivers during operation of project facilities such as establishment of health clinic at construction camps, HIV/AIDS and STIs prevention posters, HIV/AIDS and STIs education programs, and implementation of the international anti-AIDS programs. Gender Equality. In order to ensure the fair distribution of the project benefit to the women, women‟s participation in terms of decision making will be secured in accordance with government laws and regulations during the implementation of Ethnic Minority Action Plan. The Women‟s Federation, which has a mandate to advocate women and children rights, and disseminate information of livelihoods improvement through newsletter and regular group meeting, will extend their activities in the project affected area as a part of their regular activities.

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Resettlement. Local governments will support the development of social infrastructure and local markets, and have incorporated those into local development plans. For new house construction, local customs, agricultural requirements and future development needs will be taken into consideration. House construction will be carried out according to the wishes of households so that the traditional housing styles will be preserved. A special fund will be used to provide necessary help for the vulnerable people when necessary. Vulnerable people include the elderly, disabled, household headed by women, extremely poor households, and monitory people. In addition, the people seriously affected by the land acquisition and resettlement of the Project will be offered training in agricultural techniques and non-agricultural skills according to their different situations in addition to land compensation and livelihood restoration provision. Those affected women (especially minority women) will be given priority in these training so that they can enhance skills and obtain better benefit opportunities by participating in non-agricultural activities. The resettlement organizations at all levels include staffs that are members of minority nationalities. Ethnic minorities and their representatives will be participating in resettlement, and such participation will run through the whole process of resettlement.

Table 0-1: Mitigation Actions Proposed Targets/Indicators Beneficiaries Budget (CNY 103) Timing Measures Protection of Prohibiting nighttime Including 7600 minority people To be included in EIA for 2008-2010 minority construction, restoring from 16 administrative villages the proposed subproject. communities damaged irrigation and and 4 urban residential from drainage systems communities construction disturbances: Control of Health clinics in Minority residents in PPA Included in the project 2008-2010 transmissible construction camps especially along the dike diseases HIV/AIDS and STIs alignment. Compulsory requirement prevention posters to contractors to take HIV/AIDS and STIs Over 1,000 construction action under the education programs workers supervision of county Implementation of the CDCs (Center for international anti-AID Disease Control) programs Zero case of HIV/AIDS in the project areas during the construction period Encourage Number of meetings Women from 16 administrative Included in Government 2008-2010 women to Number of newsletters villages and 4 urban residential program participate in communities meetings and decisions Special support Special assistance to Among the 16 administrative Included in Resettlement 2008-2010 to resettlement vulnerable people, villages and 4 urban residential Plan. affected people including keeping 1% of communities, the vulnerable Employment skill training the total budget of people account for 8.3%. In is covered by the existing resettlement for them addition, there are at least 13 Government programs Options of rehabilitation vulnerable people to be for relocated households affected by resettlement. and respect to specific tradition Employment skill training

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by minority trainers

2. Enhancement Measures Micro-Credit Program. Under the coordination of county poverty reduction offices, Jiangyong Women Federation will provide micro-credit service to some 500 rural minority women in the 16 administrative villages and 4 urban residential communities of Jiangyong County during the project implementation period. Most of them will be minority women. The average size of the loan is CNY 1000. The loan would be used for the income generating activities. Repayment period ranges from 0.5 to 4 years with annual interest rate of 5-6%. The poverty reduction offices will cover 50% of the credit‟s interest charges.

Tourism Development. County governments and their tourism agencies will take the following promotion actions for tourism development:  Exhibition of Yao cultures and establishing tourism infrastructures, such as building an ethnic minority plaza along the river nearby.  Preparation of tourism brochures and posters to distribute and display in the rest and parking areas and bus stations. They are also to be distributed in various tourism agents in cities.  Introduction of the tourism resources with access map on various websites. Technical Advice and Training. As components of the resettlement plan for income recovery, county technical sectors (i.e., agricultural and forestry bureaus, labor and social security bureau) will provide special technical advices and training to the project affected farmers (men and women) on cash cropping, livestock management, and non-farm skills, as well as job introduction for migrant labors. Skill training will also be provided to enable minority people take employment opportunities from construction of flood control projects.

Tax Incentives for Minority Families. To encourage local minority people to engage in secondary and tertiary activities, the local government will provide tax incentives and special policies, such as fixed base, increasing subsidy, and special assistance, waive agricultural tax, and provide priority for the minority households to get small loans. Table 5-2: Enhancement Measures Proposed Measures Targets/Indicators Beneficiaries Budget Source Timing (CNY) Micro credit (mostly to rural Minority women in 500 minority women 50,000 Jiangyo 2008-201 women) Jiangyong County ng 0 Women Federati on Tourism promotion Building ethnic minority All minority population in 5 – 6 million County 2008 plaza Xiaopu Town, especially govern onward small business persons ment s Advice on agricultural Affected minority Minority population of 1000 Covered by County 2008 techniques and no-farm population local govern onward skills programs ment s

Tax incentives Tax benefits for new small 7600 minority people County 2008 business, tax exemption govern onward for agricultural activities ment s

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3. Project Benefit Measures Employment Measures. It is suggested to take the employment of local minority people as unskilled labors for the construction of the expressway as a potential contract item between Jiangyong PMO and contractors. The contract will specify that contractors should employ at minimum, 75% of local unskilled labors. Full wages will be paid to local people employed for the construction of the flood control components. On-the-job training will be provided for workers and special attention will be paid to the illiterate workers by PMO and contractors.

Table 0 -3: Project Benefit Measures Proposed Actions Targets/Indicators Beneficiaries Budget (‘000 CNY) Timing Project construction days: 190,000 days Employment of minorities as unskilled labor, 40% are to be unskilled labors for 50,000 minority Included in civil awarded to minority 2008-2009 construction of the flood labors works contracts population related works Contractors use 75% of local labors minimum Employment of minorities at 40 positions for management, 16 minority Included in project 2010 maintenance and other of which 40% would be workers operating budget onwards associated activities minorities

B. Budget and Financing Sources All measures are going to be financed by the local government or under the project. The budget for each measure is shown in Tables 5-1, 5-2 and 5-3. Since project design is not finalized yet, budget for the various actions are subject to modifications in the future.

C. Implementation Arrangement Jiangyong PMO, through its implementing agency and the contractors, will play a leading role in implementing most of the construction-related measures previously presented. Specifically, Jiangyong PMO will be directly involved in construction of new dikes, improvement of existing ones, and installation of related facilities through finance provision and construction supervision.

County governments will take the leading role in implementing the supportive measures such as technical training, tourism promotion and micro-credit. These actions, routine work of local governments, will undoubtedly be implemented regardless the project. Several government agencies will be involved including minority affairs bureau, land administration bureau, poverty reduction office, forestry bureau, agricultural bureau, women‟s federation (government organized NGO), township governments, etc.

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D. Consultation and Participation Plan In the subproject implementation, the local governments and village committees will work closely in coordinating actual implementation, from organizing village labors input to avoiding or mitigating potential negative impacts. The entire subproject implementation will be closely supervised. The combination of county officials and representatives of villagers to form supervision team will be effective. Based on different situation in different villages, different monitoring method could be used to ensure quality of the construction. It will be in villagers‟ own interest to ensure quality of construction since they will be part of beneficiaries when the subproject is completed.

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

E. Grievance Procedures

(1) Possible Complaint and Problem Solving Methods

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

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

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

In the construction process, due to slow allocation of resettlement funds, houses building, and economic

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

(2) Appeal Channel and Procedure

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

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

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F. Monitoring and Evaluation（M&E）

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

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

The monitoring and evaluation content of EMDP will include：

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

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

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

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

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

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

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

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

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

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

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

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

The collection of data should be kept to a minimum and concentrate on data that is required for key indicators. The following list provides some broad evaluation indicators that are of greatest importance. Specific indicators related to the implementation of the EMDP are listed in previous Tables. Data collected shall be disaggregated by sex and by ethnic group whenever possible:

 Production output value in target villages  income per capita  poverty incidence  ownership of assets in selected villages.  new commercial activity along the new river front  changes in quality of water and health with reasons for selected villages  new houses built/under construction in selected townships  frequency of technical and socio-economic advice and training to selected villages on local roads  school attendance classified by grade, gender and ethnicity and drop out rate for selected townships

Not all the above questions will apply in every case. Some relate only to villages affected by the project. Others are only appropriate once the flood control project has been constructed. Questions in the „before construction survey‟ should instead probe into the anticipated benefits from the schemes and other development priorities. Surveys would be carried out in villages located in close proximity to the project.

Jiangyong PMO understands that ADB will play a leading role in formulating the M&E plan. Therefore, ADB will provide guidance to prepare a feasible M&E plan before project implementation. Jiangyong PMO will coordinate its implementing agency and local government to assist the consultant team to carry out the M&E plan. The budget for monitoring and evaluation activities will be worked out once detail M&E plan is completed, which will be used for hiring the domestic PPMS specialist and domestic EMDP monitoring agency.

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