Resettlement Monitoring Report

Project Number: 35354-013 December 2013

PRC: - Railway Development Project

Prepared by CIECC Overseas Consulting Co., Ltd.

This Resettlement Monitoring Report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Director, 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.

ADB LOAN External Monitoring Report– No7 The People’s Republic of ADB Loan

LanZhou –ChongQing RAILWAY PROJECT

EXTERNAL MONITORING & EVALUATION OF

RESETTLEMENT ACTION PLAN

Report No.7

Prepared by

CIECC OVERSEAS CONSULTING CO.,LTD

December, 2013Beijing

1 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

TABLE OF CONTENTS 1. FOREWORD ...... 4 1.1. MONITORING METHOD AND CONTENT ...... 4 1.2. REVIEW AND FEEDBACK OF PREVIOUS MONITORING ACTIVITIES ...... 4 1.3. KEY POINT OF THIS MONITORING ...... 6 1.4. PERSON RESPONSIBLE FOR MONITORING AND MEMBER OF MONITORING GROUP ...... 7 2. LAND EXPROPRIATION, DEMOLITION AND RELOCATION SCHEDULE ...... 7 2.1. OVERALL PROCESS AND LATEST PROGRESS OF LAND EXPROPRIATION, DEMOLITION AND RELOCATION ...... 7 2.2. EXPRESS START AND END TIME OF KEY ACTIVITIES FOR LAND EXPROPRIATION, DEMOLITION AND RELOCATION IN TIME TABLE WAY...... 9 2.3. EVALUATION OF COORDINATION BETWEEN DEMOLITION AND RELOCATION SCHEDULE AND PROJECT CONSTRUCTION SCHEDULE ...... 11 3. PROJECT EFFECT CHANGE AND CAUSE ANALYSIS ...... 13 3.1. COMPARISON OF DIFFERENCE BETWEEN ACTUAL PROJECT EFFECT AND RELOCATION PLAN, INCLUDING VARIOUS SUB PROJECTS OR VARIOUS STAGE IMPLEMENTED PROJECTS ...... 13 3.2. ANALYZE AND EXPLAIN CAUSES FOR ABOVE CHANGE ...... 13 4. IMPLEMENTATION OF RELOCATION POLICY ...... 13 4.1. DETAILED DESCRIPTION OF ACTUAL RELOCATION POLICY AND VARIOUS COMPENSATION STANDARDS FOR PROJECT ...... 13 4.1.1 COMPENSATION STANDARD FOR LAND EXPROPRIATION ...... 17 4.1.2 COMPENSATION FEE FOR DEMOLITION AND RELOCATION ...... 21 4.2. COMPARISON OF DIFFERENCE BETWEEN ACTUAL POLICIES AND POLICIES IN RELOCATION PLAN ...... 30 4.3. ANALYZE AND EXPLAIN CAUSES FOR ABOVE DIFFERENCES ...... 30 4.4. EVALUATION OF ADAPTABILITY FOR RELOCATION POLICY ...... 30 5. RESTORATION OF REVENUE AND PRODUCTION ...... 31 5.1. IMPLEMENTATION OF VARIOUS CONCRETE MEASURES FOR RESTORATION OF REVENUE AND PRODUCTION FOR AFFECTED RESIDENTS .... 31 5.2. IMPLEMENTATION OF VARIOUS CONCRETE MEASURES PROVIDED FOR RESTORATION OF PRODUCTION AND COMMERCE FOR ENTERPRISES AND SHOPS AND EMPLOYEE’S POSITION ...... 32 5.3. IMPLEMENTATION OF VARIOUS CONCRETE MEASURES PROVIDED FOR RESTORATION OF LIVELIHOOD FOR WEAK GROUPS ...... 32 5.4. INVESTIGATE DETAILED INDEX OF VARIOUS ANNUAL REVENUES AND EXPOSURE CHANGE FOR AFFECTED RESIDENTS BY SAMPLE TRACKING AND COMPARISON AND ANALYSIS OF BASELINE DATA ...... 34 5.5. EVALUATION OF INCOME RESTORATION DEGREE FOR AFFECTED RESIDENTS ...... 45 6. RELOCATION AND RECONSTRUCTION OF BUILDINGS ...... 46 6.1. RELOCATION AND RECONSTRUCTION MODE AND MEASURE FOR HOUSES, ENTERPRISE AND PUBLIC INSTITUTIONS, SHOPS, SCHOOLS AND OTHER BUILDINGS ...... 46 6.2. RELOCATION AND CONSTRUCTION SCHEDULE, INCLUDING CONSTRUCTION OF VARIOUS RELOCATION INFRASTRUCTURES AND PUBLIC FACILITIES ...... 50 6.3. MEASURES OF RECONSTRUCTION AND RELOCATION PROVIDED FOR WEAK GROUPS AND ITS IMPLEMENTATION, AND PROVISION OF CORRESPONDING CASE STUDY ...... 54 6.4. INVESTIGATE OPINION AND VIEW OF RELOCATION FOR AFFECTED RESIDENTS BY QUESTIONNAIRE OR INTERVIEW ...... 55 6.4.1 PROVINCE ...... 55 6.4.2 PROVINCE ...... 60 6.4.3 PROVINCE ...... 60 6.4.4 CHONGQING MUNICIPALITY...... 65 6.5. DEMOLITION AND RELOCATION OF BUILDING ...... 66 7. RESTORATION OF INFRASTRUCTURES AND PUBLIC FACILITIES ...... 67 7.1. RESTORATION OF INFRASTRUCTURES AND PUBLIC FACILITIES AFFECTED BY RAILWAY PROJECT ...... 67 7.2. RESIDUAL PROBLEM AND MEASURE FOR OWNERS ...... 69 8. EXECUTION OF RELOCATION BUDGET AND SOURCE OF FUND ...... 70 8.1. PAYMENT OF RELOCATION FEE AND ACTUAL FUND FLOW ...... 70 8.2. PAYMENT SCHEDULE OF RELOCATION FUND ...... 70 8.3. SOURCE AND READY SITUATION OF FUND FOR RELOCATION ...... 71 8.4. COMPARISON AND ANALYSIS OF ACTUAL RELOCATION FEE AND BUDGET IN RELOCATION PLAN AND ANALYSIS OF CHANGE CAUSE ...... 72 9. PUBLIC PARTICIPATION AND INFORMATION PUBLICATION ...... 73 9.1. INFORMATION PUBLICATION RECORD OF PROJECT ...... 73 9.2. PUBLIC RECORD OF LAND EXPROPRIATION, DEMOLITION AND RELOCATION POLICY...... 77 9.3. PARTICIPATION MECHANISM AND RECORD OF AFFECTED RESIDENTS IN IMPLEMENTATION OF RELOCATION, MONITORING AND EVALUATION ...... 77 9.4. PUBLIC PARTICIPATION AND INFORMATION PUBLICATION OF EVALUATION ...... 78 2 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 10. IMPLEMENTATION OF RELOCATION AND MANAGEMENT AGENCIES ...... 82 10.1. ARRANGEMENT OF WORK CONTENT AND KEY RESPONSIBILITY FOR MAIN IMPLEMENTATION AND MANAGEMENT AGENCIES OF RELOCATION ...... 82 10.2. EVALUATION ON IMPLEMENTATION OF RELOCATION AND EXECUTION CAPACITY AND COORDINATION CAPACITY OF MANAGEMENT ORGANIZATION ...... 87 10.3. IMPLEMENTATION OF CONSTRUCTION MEASURES FOR ORGANIZATIONS ...... 87 10.4. EVALUATION OF INTERNAL MONITORING FOR DEMOLITION AND RELOCATION ...... 88 11. RESIDUAL PROBLEM AND SUGGESTION ...... 89 11.1. KEY PROBLEM ...... 89 11.2. SUGGESTION ...... 90 12. ANNEX ...... 91

3 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 1. Foreword

1.1. Monitoring Method and Content

From April and October 2013, the Institution has formed two monitoring investigation and evaluation teams to conduct monitoring investigation along the to-be-built railway in Gansu, Sichuan, Shaanxi and Chongqing, according to predefined monitoring investigation outlines and evaluation indicators. The investigation covers relevant data and materials for resettlement report, and meanwhile, contributions of women participation and project execution to local social development and poverty reduction. This article is the 7th issue of external monitoring report, with underlying information not later than Decmber 2013. In evaluation, data related to land acquisition, house demolition and people resettlement is provided by resettlement authorities of local governments along LCR, and reference to macro-data from LYRC is also made.

The external independent monitoring and evaluation of resettlement for China International Engineering Consulting Corporation () is coordinated and supported by Ministry of Railway (MOR), the project owner Lanzhou –Chongqing Railway Co., Ltd and various railway building and construction units who participate in the construction, Chongqing municipality, Hubei province and affected local government.

1.2. Review and Feedback of Previous Monitoring Activities

The external monitoring agency of the demolition and relocation for the Lanzhou –Chongqing Railway Project will submit the external monitoring report of the demolition and relocation for the Lanzhou –Chongqing Railway Project to Asian Development Bank (hereafter referred to as ADB) every half an hour according to the loan agreement between Ministry of Railways and ADB.

In April and October , 2013, the external independent monitoring agent of resettlement organized one monitoring, investigation and evaluation team to monitor and investigate the affected the Lanzhou –Chongqing Railway Project in Gansu province,sichuan province,Shanxi province and Chongqing municipality according to the established monitoring and investigation outline and the monitoring evaluation index. The investigation content includes the resettlement report related data and material. Furthermore, it investigates the women participation in the project construction and the effect of the project construction on local society development and the poverty reduction. This monitoring, investigation and evaluation is the external monitoring, investigation and evaluation – Phase 6. As the foundation of the evaluation, the deadline of the information data is December. 2012. The monitoring and evaluation of the land acquisition, building demolition and resettlement related data will take the information provided by the affected local government 4 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 resettlement department for the Lanzhou –Chongqing Railway Project as the main basis, and refer to the macro data material provided by the Lanzhou–Chongqing Railway Co., Ltd.

The external independent monitoring and evaluation of resettlement for China International Engineering Consulting Corporation (Beijing) is coordinated and supported by Ministry of Railway (MOR), the project owner the Lanzhou –Chongqing Railway Co., Ltd and various railway building and construction units who participate in the construction, Chongqing municipality, Gansu province ,Sichuan province ,Shanxi province and affected local government.

We can draw a conclusion from various collected information that the person affected by the land acquisition and building demolition is resettled better, the production and life restoration related work is carried out effectively, and most of affected person are satisfied with the compensation and resettlement during the land acquisition, building demolition and resettlement compensation for the the Lanzhou –Chongqing Railway Project.

The existing problem includes the dangerous building problem out of the red line shall be solved, part of the building demolition families for the demolition, but not for the land acquisition are far away from their original land after the resettlement, and part of the temporarily occupied is hard for the reclamation and it is necessary to be evaluated and confirmed by the qualified institute and transacted by the permanent land acquisition standard. For the construction cuts off part of the water source for the farm land, some place can not add the water storage and conservation facilities to restore the irrigation, and the local government and villager puts forward to replant the dry land and requires the building parties to compensate a certain fee. The monitoring team understands that most of the problems are put forward and wait for solving, so they hope related departments speed the processing up and prevent from affecting the agricultural production. For the limit of the railway speed-up and the design, the serious water accumulation takes place for several traffic culverts, which causes the inconvenience of the production and life for the residents at both sides of the railway and strong dissatisfaction of the affected person, and related units are solving this problem. So far, the problem of the water accumulation is not solved for some culverts, so we hope related departments to take the benefit of the resettlement person into account and solve this problem as soon as possible. Part of districts reach the agreement with the small-size enterprises with a large number of the building demolitions (such as the individual workshop and home shop), but the land for the resettlement can not be arranged in time. The external monitoring agent still thinks this will cause potential adverse effect on the production restoration and resettlement of the affected small-size enterprises. It is suggested to provide these small-size enterprises with the more secure resettlement method as soon as possible, to make them restore the operation and production.

The external independent monitoring evaluation work of the Institution has received collaboration and support from MOR, project owner LYRC, the project executing parties and the local

5 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 governments along LCR in Gansu, Sichuan, Shaanxi and Chongqing, and the Institution hereby acknowledges their contributions.

1.3. Key Point of This Monitoring

The monitoring group arrives at the whole production line to collect the background material.。The phase 5 monitoring and evaluation site investigation was carried out in the affected area of the Lanzhou-Chongqing Railway Project in March, -April, 2012. The external independent monitoring and evaluation unit dispatches one site investigation and evaluation team to Gansu province,Sichuan province,Shanxi province and Chongqing municipality to perform the external monitoring and evaluation task. The monitoring and evaluation team accesses various local government resettlement departments, such as LYCR headquarters, Project Construction Headquarters, Project Construction Headquarters, Land Consolidation and Land Consolidation and Acquisition Office of Chengguan of Lanzhou City, and resettlement and land administration authorities at the following places: in Gansu, , Aning District, Anding District of City, Weiyuan County, , , Dangchang County of Longnan City, and ; in Shaanxi , City; in Sichuan, , , Shizhong District, Yuanba District, Changxi County of City, , , and City of Nanchong City, and Wusheng County of Guang’an City; and Hechuan County of Chongqing Municipality. The teams also held interviews with 15 project contractors along LCR. The teams gather macro-data and acknowledge resettlement progress through visits to villages and rural households and interviews with resettlement authorities at county/district level, and sometimes at township/town level.

6 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 1.4. Person Responsible for Monitoring and Member of Monitoring

Group

Related Technical Title Reserved Position for This No. Name Major Work and Vocational Project Experience Qualification Chai Railway 1. 26 years Senior Engineer Project leader Jianmin Engineering

He Economic Assistant Investigation, design and 2. 14 years Weimin Management Engineer organization of project site

He Process Material analysis and report 3. 6 years Technician Xiaodong Management writing

Business Site investigation and 4. Liao Wei 8 years Technician Management material analysis

He Traffic and 7 years Technician Site investigation and 5. Xiaochun Transportation material statistics Zheng Advertising 2 Technician Site investigation and 6. Yizhao material statistics

2. Land Expropriation, Demolition and Relocation Schedule

2.1. Overall Process and Latest Progress of Land Expropriation, Demolition and Relocation

The demolition and relocation of the project develops normally and the land expropriation can basically ensure the requirement for the construction and production is met according to the latest progress briefing provided by the engineering department of the Lanzhou- Chongqing Railway Co., Ltd. At present, majority of the demolished households are relocated successfully, and minority of the demolished households failed to be relocated for several reasons are be transited orderly. The treatment method of the dangerous building out of the red line is enabled, and the third party with related qualification is invited to develop the evaluation work. For the summary on the quantity of the completed land expropriation, demolition and relocation at the end of October, 2013, refer to Table 2-1.

7 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

Table 2-1: Summary on Quantity of Completed Land Expropriation

Summary on Quantity of Completed Land Expropriation

Temporary(Acre)

Permanent Land Use (Acre) Small-scale Dump Yard Actual Actual Plan Total (%) Plan Plan

27003 26076 20538 20221 8069 8079

Date：December , 2012.

Table 2－2 Summary on Quantity of Completed Demolition and Relocation(m2) In Redline Out Redline 986253 80531

Date：October , 2013.

8 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

For the land expropriation, demolition and relocation of the Lanzhou –Chongqing Railway construction project, the land expropriation has completed basically, and majority of the demolition and relocation are completed. There is still rather heavy workload to be completed in terms of the land expropriation, demolition and relocation. For the overall land expropriation, demolition and relocation schedule, Lanzhou and Chongqing has not yet completed the land expropriation task, and there are a part of the workload to be completed in terms of the land expropriation, demolition and relocation. The schedule and quality of the land expropriation, demolition and relocation work in Lanzhou and Chongqing main District, especially for the land expropriation, demolition and relocation work of the factory building, has an effect on the overall schedule of the project. All of the land expropriation, demolition and relocation tasks are completed at the areas other than the main urban area. The land expropriation task and the demolition and relocation for most of the buildings are completed basically in Sichuan province, but there is still rather heavy workload to be completed in terms of the land expropriation, demolition and relocation. Especially for the construction of the centralized settlement point and the temporary land expropriation work, the schedule and quality of the previous work will have an effect on the restoration of peoples’ life and residence. The schedule and quality of the subsequent work will have an effect on the overall schedule of the affected project. The construction unit will ensure the total time limit of the project is not affected by taking the scheme to optimize the construction organization.

2.2. Express Start and End Time of Key Activities for Land

Expropriation, Demolition and Relocation in Time Table Way

The Lanzhou –Chongqing Railway is built with the joint venture of Ministry of Railways, Chongqing Municipality and Hubei province. The Lanzhou –Chongqing Railway Co., Ltd is the implementer of the construction and management and undertakes the principal responsibility of the construction and management. The Lanzhou –Chongqing Railway Co., Ltd was registered in the Chongqing Industry and Commerce Administration Department on March 19, 2008.The construction cycle of this project is 8 years, and the preliminary preparation and planning work of the project was initiated at the beginning of 2007. The project is kicked off on September 17, 2008, and the land expropriation, demolition and relocation are developed at the same time. 10 percent of the overall land expropriation, demolition and relocation are completed in 2008, 40 percent of the overall land expropriation, demolition and relocation are completed in 2009, 40 percent of the overall land expropriation, demolition and relocation are completed in 2010,and remaining 10 percent of the overall land expropriation, demolition and relocation are completed in 2011. The land expropriation, demolition and relocation are basically completed on November 30, 2012. 9 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 There is a little of the land expropriation and sporadic demolition and relocation, and 85 percent of the temporary land expropriation for the temporary spoil yard is completed. The whole project is planned to complete in 2015，and in December 31, 2015 put into trial operation completed.

Table 2-2: Demolition and Relocation Schedule

Activity Organization Responsible Implementation Time Project Preparation and Preliminary First / Second Railway Survey and Design Institute 2007~2008 Design Local Administrative Department of Land and Resource, Determination of Land Expropriation Local Railway Support Office, Township, County and 2007.8~2007.12 (Survey and Investigation) Railway Construction Unit Detailed Demolition and Relocation Second Railway Survey and Design Institute, Railway 2008.1 Planning Support Office and local Officials Investigation and Determination of Local Administrative Department of Land and Resource, Affected Household and Building Local Railway Support Office, Township, County, (including Accessories) and 2008.10 Demolished and Relocated Household and Railway Investigation of Demolition and Construction Unit Relocation Local Administrative Department of Land and Resource, Hold Various Consultative Local Railway Support Office, Township, County, Conferences and Demolition and Demolished and Relocated Household, Railway 2008- Today Relocation Conferences Construction Unit, Second Railway Survey and Design Institute and Expert Consultation Local Administrative Department of Land and Resource, Establish Detailed Compensation and Local Railway Support Office, Township, County, Relocation Scheme (including Demolished and Relocated Household, Railway 2007.12~2008.4 Determination of New Residential Construction Unit and Second Railway Survey and Land), Train Project Personnel Design Institute Second Railway Survey and Design Institute and Local Prepare Land Use Planning and Administrative Department of Land, Village Cadres, Report to Ministry of Land and 2008.09 Affected Household, and Enterprises Participate in Resources for Approval Discussion. Update Demolition and Relocation Local Administrative Department of Land, Local Railway Plan and Disclose Information to Support Office, Township, County, Demolished and 2008.09 Affected Personnel Relocated Household and Railway Construction Unit Sign Land Expropriation, Demolition Government’s Railway Support Office, Administrative and Relocation Agreement with Department of Land, Township, County and Demolished 2008.09 Village and Household and Relocated Household Railway Construction Unit, Government’s Railway Compensatory Payment Support Office, Affected Villages and Demolished and 2008.09 - Today Relocated Household Self Construction of Demolished and Relocated Building Reconstruction 2008.09 - Today Household and Central Relocation of Government Demolished and Relocated Household, Villages, Demolition and Relocation 2008.09 - Today Township Government and Railway Construction Unit Civil Engineering Construction Railway Building, Construction and Supervision Unit 2008.09~2015.12

10 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

2.3. Evaluation of Coordination between Demolition and

Relocation Schedule and Project Construction Schedule

The demolition and relocation work is developed normally as a whole and the compensatory payment of the land expropriation, demolition and relocation along the Lanzhou –Chongqing Railway Project is appropriated in place by the end of this external monitoring and investigation (October 30, 2013). .The main part of land acquisition and house demolition for LCR Project has been completed. In terms of progress, though Gansu and Sichuan has nearly finished scheduled land acquisition and most house demolition, large amount of resettlement work needs to be done, especially construction of concentrated resettlement spots and temporary land acquisition. Progress and quality of the earlier will have impacts on restoration of APs’ living. Land acquisition and house demolition in urban Chongqing is behind of schedule, and large amount of work needs to be done. The progress and quality of land acquisition and house demolition in urban Chongqing, especially that of factory buildings, will have impacts on overall project progress. The land acquisition and house demolition outside of urban area has been essentially finished. In general, land acquisition and house demolition at most places along LCR is proceeding in satisfying manner.

Compensation and resettlement for LCR Project basically has executed RAP. Though progress of actual land acquisition and house demolition work differs by place along LCR, it has followed the compensation and resettlement policies and schemes formulated in accordance with laws and regulations and enacted a procedure in which compensation will be paid before actual demolition. In addition, resettlement processes like on-site survey and measurement of impacts, impacts publicization, compensation and resettlement publicization and signing agreement with APs have been strictly implemented. APs have fully acknowledged compensation and resettlement policies, complaints during land acquisition and house demolition can be smoothly raised, and opinions of APs can be timely dealt and fed back

Due attention has been given to compensation to and resettlement of APs. Resettlement authorities at most places offer multiple resettlement options, including reserved land resettlement, cash resettlement and joining social security system, and it is particularly noteworthy that Sichuan Province, Lanzhou City and Chongqing Municipality have actualized measures to secure social security funds for peasants whose land is acquired, so that living of APs can better protected. In the meantime, they also provide allowance to compensate internal decoration of demolished housing, a method that in essence increases amount of compensation and is worth encouraging

11 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 and appraising. During resettlement, except promising to pay full compensation in one allotment or two allotments (usually two allotments), resettlement land is provided in concentrated or distributed mode to make sure that APs can acquire housing land on FOC basis to build new houses and avoid levies of tax and surcharges. The Institution finds in its on-site investigation and evaluation that resettlement authorities at all places have managed to satisfy resettlement requirements of APs, and resettlement housing that has been completed exhibit good conditions. The Institution has not found any significant disputes around issues of resettlement.

.Agencies founded at all levels that take charge of land acquisition, house demolition and resettlement are playing key role, which guarantees the achievement of RAP objectives.

.A definitive conclusion can be drawn from the gathered massive information that during land acquisition, house demolition, compensation and resettlement for LCR Project, APs have been well treated, restoration of their work and living is underway, and most APs feel satisfied with compensation and resettlement.

12 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 3. Project Effect Change and Cause Analysis

3.1. Comparison of Difference between Actual Project Effect and

Relocation Plan, Including Various Sub Projects or Various Stage

Implemented Projects

The whole line of the Lanzhou – Chongqing Railway Project provides the permanent land use for 26076 acres, completes 96.6 percent of the land area for 27003 acres required for the project design drawing, demolishes and relocates the buildings fo1066784m2, which is101.5% of the demolition and relocation for1050685 m2, the households affected by the demolition and relocation are about 5054, the population affected by the demolition and relocation are about 18232, the households affected by the land expropriation are about 15061 and the population affected by the land expropriation are about 576264 by the end of November 30, 2013.

Compared to the RAP plan of the Lanzhou – Chongqing Railway Project, the planed permanent land expropriation area for the project is 24694 acres, and the actual area of the land expropriation is 105.6% of that in the RAP plan. The building area for various demolition and relocation is 89.7% of the RAP demolition and relocation area for 1189240 m2.

3.2. Analyze and Explain Causes for Above Change

Compared to the RAP plan of the Lanzhou – Chongqing Railway Project, the planned permanent land expropriation area for the project is close to the actual land expropriation area, and the actual area of the land expropriation is105.6% of that in the RAP plan. The planned demolition and relocation area for the project is close to the actual demolition and relocation area.

4. Implementation of Relocation Policy

4.1. Detailed Description of Actual Relocation Policy and Various

Compensation Standards for Project

Compensation for land acquisition and house demolition under LCR project will be carried out in strict

13 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 compliance with Land Administrative Law of PRC, Implementation Methods for Land Administrative Law of PRC and Regulations on House Demolition and Resettlement that are promulgated by State and local governments, compensation agreements reached between MOR and the involved provinces, and the compensation standards defined in Resettlement Action Plan as mutually agreed by ADB and MOR. These laws and regulations, in essence, intend to ensure that APs can rapidly restore their work and living to level before the impacts, and restoration costs should be deemed as the evidence to justify the compensation standards.

Land and acquisition and house demolition for LCR project is carried out in compliance with the following laws and regulations:

i. Land Administration Law of PRC, August 1998; revised by People’s Congress on August 28, 2004 with an order entitled:”Decisions on Modification on PRC Land Administration Law”.

ii. Urban Land and Housing Property Administration Law of PRC, April 1994.

iii. The State Council’s Decision on Further Reform to Strictly Implement Land Administration, State Document No.28 (2004).

iv. Regulations on Implementation Methods for the Land Administration Law of PRC, December 1998.

v. Administrative Regulations for Urban Housing Demolition and Relocation of PRC, June 2001.

vi. Law of the People’s Republic of China on Administration of Urban Real Estate, April, 1994.

vii. Basic Farmland Protection Regulations, December 1998.

viii. Circular of the Central Committee of the Communist Party of China and the State Council Concerning Further Enhancing Land Administration and Earnestly Protecting Cultivated Land, 1997.

ix. Gansu Province Implementation Method for Land Administrative Law of PRC, March 2003

x. Property Law, 2007

xi. Sichuan Province Implementation Method for Land Administrative Law of PRC, December 1999

14 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 xii. Chongqing Municipality Implementation Method for Land Administrative Law of PRC, May 1999

xiii. Lanzhou City Implementation Method for Land Administrative Law of PRC

xiv. Dingxi City Implementation Method for Land Administrative Law of PRC

xv. Guangyuan City Implementation Method for Land Administrative Law of PRC

xvi. Guang’an City Implementation Method for Land Administrative Law of PRC

xvii. ADB’s Policies on Involuntary Resettlement, 1995.

xviii. ADB’s Policy on Aboriginals, 1998.

xix. Conference Summary on Accelerating LCR Construction, MOR Circular No. 150, 2005

xx. Conference Summary on Accelerating Initial Phase of LCR Project, MOR Circular No. 114, 2007

xxi. Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Dingxi City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.1, 2009

xxii. Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Lanzhou City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.2, 2009

xxiii. Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Longnan City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.3, 2009

xxiv. Notice on Publicizing Compensation Standards for House Demolition within Gansu for LCR, Circular No. 574, 2008

xxv. Explanation on Compensation Standards for Land Acquisition and On-ground Attachments for LCR, Gansu Provincial Land Acquisition Office, December 2008.

xxvi. Notice on Publishing Methods for Land Acquisition, Compensation and Resettlement by Hanzhong City People’s Government, Document No.33, 2006. xxvii. Notice on Publishing Compensation Methods for Land Acquisition, House Demolition and Attachment Removal within Ningqiang County for LCR by Ningqiang County People’s Government, Document No. 21, 2009. 15 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 xxviii. Guangyuan City’s Compensation Standards for On-ground Attachments on the Acquired Land and Methods for House Demolition and Resettlement, Document No.10, 2009.

xxix. Letter of Guangyuan City People’s Government on Average Annual Farmland Output Three Years before Land Acquisition, Document No. 105, 2008. ‘

xxx. Report on Cost Estimation for Land Acquisition within Guangyuan City for LCR by Key Construction Office of Guangyuan City People’s Government, Document No.12, 2009

xxxi. Unified Annual Output Standard of Land Acquisition in Guangyuan City Guangyuan Government Issuance [2010] No.7 File

xxxii. Additional Regulations on Ground Attachment Compensation Standard for Land Acquisition and House Demolition and Settlement Method in Guangyuan City (Provisional) Guangyuan Government Issuance [2010] No.40 File.

xxxiii. Proceedings on Issues of House Demolition and Residence Land Construction for Guangshan Highway in Chaotian District Guangyuan Government Issuance [2009] No.63 File.

xxxiv. Letter on Report of Calculation Method of Land Acquisition and Demolition Compensation for Langzhou – Chongqing Railway in Nanchong City for Nanchong Development and Reform Commission Nanchong Development and Reform Commission Letter [2009] No.20.

xxxv. Report of Calculation Standard of Land Acquisition and Demolition Compensation for Suining – Chongqing railway and Lanzhou – Chongqing railway of our province Sichuan Railway Investment [2009] No.71.

xxxvi. Response Letters on Compensation for Land Acquisition, Demolition and Settlement of Lanzhou – Chongqing Railway Railway Calculation Basic Letter [2009] No.416 xxxvii. Compensation Implementation Methods for Land Acquisition, House Demolition and Resettlement with Guang’an City for LCR, Document No. 4, 2009. xxxviii. Report by Guang’an City Development and Reform Committee on Initial Cost Estimation for Land Acquisition, House Demolition and Resettlement within Guang’an City for LCR, Document No. 261, 2009.

16 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 xxxix. Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City People’s Government, Document No. 45, 2008.

xl. Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City Hechuan District People’s Government, Document No. 15, 2008.

4.1.1 Compensation Standard for Land Expropriation

Policies enacted by Gansu Provincial Administration of State Land and Resource for land acquisition for LCR in Lanzhou City, Dingxi City and Longnan City includes Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Dingxi City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.1, 2009, Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Lanzhou City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.2, 2009, and Notice on Compensation Standards for Land Acquisition and On-ground Attachments (within Longnan City) for LCR by Gansu Provincial Administration of State Land and Resource, Circular No.3, 2009. These three documents have defined that compensation plan for permanent land acquisition in Gansu Province includes compensation for land, allowance for resettlement and compensation for standing-crops or woods, with actual standards varying for each city. Please refer to Table 4-1 for details. Compensation for temporarily acquired land will be determined in accordance with type of land and length of tenure, and the temporarily acquired land shall be re-cultivated by the executing parties.

Table 4-1 Compensation Standards for Permanently Acquired Land, Gansu Province

County/City Compensation Standards for Permanent Land Acquisition (RMB10,000/mu) Vegetable Irrigated Dry Land Woodland Wasteland Land Land Lanzhou Planned 2.9-3.0 2.9-3.0 1.8-2.25 0.8-2.85 0.2-1.5 Actual 5.25-10.26 2.3-5.2 1.61-2.69 1.61-9.0 0.72-1.45 Dingxi Planned 1.8-3.38 1.8-3.38 1.8-2.27 0.8-3.3 0.2-1.5 Actual 4.5 2.24 1.33-2.24 1.19-8.5 0.60-1.19

17 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 Longnan Planned 2.9-3.45 1.8-3.0 1.8-1.97 0.8-3.3 0.2-1.5 Actual 6.01 3.59 2.15-2.69 2.15-11.5 0.97-1.94 Note

Table 4-2 Compensation Standards for Temporary Land Acquisition

County/City Compensation Standards for Temporary Land Acquisition (RMB10,000/mu.Year) Irrigated Dry Land Waste Land Land Lanzhou Planned 0.275 0.26-0.275 0.065 Actual 0.30-0.58 0.22 -0.30 0.08-0.16 Dingxi Planned 0.275 0.26-0.275 0.065 Actual 0.26-0.53 0.198 -0.26 0.072-0.14 Longnan Planned 0.275 0.26-0.275 0.065 Actual 0.31-0.52 0.23 -0.31 0.08-0.17

Policies enacted by Ningqiang County People’s Government, Shaanxi Province for land acquisition for LCR includes Notice on Publishing Methods for Land Acquisition, Compensation and Resettlement by Hanzhong City People’s Government, Document No. 33, 2006, and Notice on Publishing Compensation Methods for Land Acquisition, House Demolition and Attachment Removal within Ningqiang County for LCR by Ningqiang County People’s Government, Document No. 21, 2009. In accordance with such two documents, compensation plan for permanent land acquisition in Shaanxi Province include compensation for land, allowance for resettlement and compensation for standing crops or woods. Please refer to Table 4-3 for actual compensation standards. Compensation for temporarily acquired land will be determined in accordance with type of land and length of tenure, and the temporarily acquired land shall be re-cultivated by the executing parties. For actual compensation standards, please refer to Table 4-4.

♦

Table 4-3 Compensation Standards for Permanently Acquired Land, Shaanxi Province

County/City Compensation Standards for Permanent Land Acquisition (RMB10,000/mu) Vegetable Irrigated Land Dry Land Woodland Wasteland Land Ning Qiang City Planned

18 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 Actual 2.998 2.3788-2.998 1.778-2.378 0.59-0.84 0.096 Note

Table 4-4 Compensation Standards for Temporary Land Acquisition

County/City Compensation Standards for Temporary Land Acquisition (RMB10,000/mu.Year) Irrigated Land Dry Land Waste Land

Ningqiang Planned 0.275 0.26-0.275 0.065 County Actual 0.35-0.40 0.35 -

The related policies issued for the Lanzhou – Chongqing railway in Guangyuan, Nanchong and Guangan city, Sichuan province is Ground Attachment Compensation Standard for Land Acquisition and House Demolition and Settlement Method in Guangyuan City Guangyuan Government Issuance [2009] No.10 File, Report on Cost Calculation of Land Acquisition and House Demolition and Settlement for Lanzhou – Chongqing railway in Guangyuan city of key construction office for people’s government in Guangyuan city, Guangyuan – Chongqing Office [2009] No.12, Letter on Report Calculation Standard of Land Acquisition and House Demolition in Nanchong city for Nanchong Development and Reform Commission Letter of Nanchong Development and Reform Commission [2009] No.20, Implementation Method of Land Acquisition, House Demolition and Resettlement Compensation in Guang’an city of Lanzhou – Chongqing railway, Guang’an government Issuance [2009] No.4, Report of Primary Calculation for Compensation Cost of Land Acquisition and House Demolition in Guang’an city of Lanzhou – Chongqing railway for Guang’an Development and Reform Commission, Guang’an Development and Reform Commission [2009] No.261, Unified Annual Output Standard of Land Acquisition in Guangyuan City Guangyuan Government Issuance [2010] No.7 File, Additional Regulations on Ground Attachment Compensation Standard for Land Acquisition and House Demolition and Settlement Method in Guangyuan City (Provisional) Guangyuan Government Issuance [2010] No.40 File, Proceedings on Issues of House Demolition and Residence Land Construction for Guangshan Highway in Chaotian District Guangyuan Government Issuance [2009] No.63 File, Report of Calculation Standard of Land Acquisition and Demolition Compensation for Suining – Chongqing railway and Lanzhou – Chongqing railway of our province Sichuan Railway Investment [2009] No.71 and Response Letters on Compensation for Land Acquisition, Demolition and Settlement of Lanzhou – Chongqing Railway, Railway Calculation Basic Letter [2009] No.416.

Table 4-5 Compensation Standards for Permanently Acquired Land, Sichuan Province

County/City Compensation Standards for Permanent Land Acquisition (RMB10,000/mu)

19 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 Vegetable Land Irrigated Land Dry Land Woodland Wasteland

Guangyuan Planned 2.2 2.2 1.27 2.7 0.66 Actual 1.76-2.99 1.76-2.99 1.76- 1.76-2.9 0.88-1.50 2.99 9 Nanchong Planned 2.74 2.74 1.8 2.24-2.8 1.02-1.3 Actual 4.02 4.02 4.02 4.02 2.01 Guang’an Planned 3.0 3.0 2.0 2.5-3.0 0.7 Actual 2.32 2.32 2.32 2.32 1.16 Note

Table 4-6 Compensation Standards for Temporary Land Acquisition

County/City Compensation Standards for Temporary Land Acquisition (RMB10,000/mu.Year) Irrigated Dry Land Waste Land Land Guang Planned 0.275 0.26-0.275 0.065 yuan Actual 1.0 1.0 0.5 Nan Planned 0.275 0.26-0.275 0.065 chong Actual 1.0 1.0 0.5 Guang’ Planned 0.275 0.26-0.275 0.065 an Actual 1.0 1.0 0.5

Policies enacted by Chongqing Municipality for land acquisition for LCR in Hechuan District include Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City People’s Government, Document No. 45, 2008 and Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City Hechuan District People’s Government, Document No. 15, 2008. In accordance with such two documents, compensation plan for permanent land acquisition in Shaanxi Province include compensation for land, allowance for resettlement and compensation for standing crops or woods. Please refer to Table 7-8 for actual compensation standards. Compensation for temporarily acquired land will be determined in accordance with type of land and length of tenure, and usually as the tenure of temporarily acquired land will not exceed one year, the compensation for temporarily acquired all kinds of land will include compensation for standing-crops or woods and land use fees, with actual compensation standards shown as Table 7-8. The temporarily acquired land shall be re-cultivated by the executing parties.

Table 4-7 Compensation Standards for Permanent Land Acquisition, Chongqing Municipality

20 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 County/ Compensation Standards for Permanent Land Acquisition City (RMB10,000/mu) Vegetable Irrigated Land Dry Land Woodland Wasteland Land Hechuan Planned 3.0 2.0-3.0 2.0 2.4-3.0 1.6 Actual 4.0-4.1 4.0-4.1 4.0-4.1 4.0-4.1 4.0-4.1 Note

Table 4-8 Compensation Standards for Temporary Land Acquisition, Chongqing Municipality

County Compensation Standards for Temporary Land Acquisition (RMB10,000/mu.Year) /City Irrigated Land Dry Land Waste Land

Hechuan Planned 0.275 0.26-0.275 0.065

Actual 0.29-0.40 0.26-0.33 0.24-0.31

Land compensation allocation model: The project of land compensation and resettlement departments of land affected people for a variety of alternative resettlement mode. The concrete around the land acquisition and resettlement mode is decided by local villagers autonomy. Most of the area along the Lan Yu railway using the social security resettlement resettlement model and cash compensation, there are a few affected village taken resettlement of land adjustment. The whole land affected people get better compensation and appropriate placement, production have been recovered to different extent. Gansu Province, Sichuan Province and Chongqing city have the following four basic forms: 1) social security resettlement mode: land for social security, gold 80% land compensation calculated according to the area under the collective ownership, social security problem is solved by the collective economy, including residents and medical insurance. 2) rural resettlement mode: to declare the urban residents account, compensation 28000 yuan per person. 3) land resettlement mode: adjust the collective land reserve land swap redistribution way. 4) cash compensation and resettlement mode: full of cash payments to the affected households.

4.1.2 Compensation Fee for Demolition and Relocation

As of this phase of external monitoring evolution, compensation standards for land acquisition and house demolition have been enacted by local governments along LCR, but there is difference among them, and local governments have also adopted various expedient measures.

Policy on house demolition and relocation for LCR in Lanzhou City, Dingxi City and Longnan City that is promulgated by Guansu Provincial Administration of State Land and Resource includes Notice

21 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 on Publicizing Compensation Standards for House Demolition within Gansu for LCR, Circular No. 574, 2008, which has defined common compensation standards for all house demolition and relocation activities in each affected city of Gansu. Please refer to Table 4-9 for details.

22 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

Table 4-9 Compensation Standards for House Demolition and Attachments, Gansu Province

County/ Compensation Standards for House Demolition Attachment Others City (RMB Yuan/m2) Brick Brick-Wo Earth-Wood Simplified Wall Well Stove Cement Tomb Reloca Transition od RMB (RMB RMB Floor RMB each tion Cost /m each) each Cost RMB/m2 RMB/ RMB/House House hold/Month hold

Lanzhou Planned 350 300 250 - - - 2000 650 534-1310 299-405 145-290 96 2000-80000 800-1200 Actual

Dingxi Planned 380 330 280 - - - 328 160 534-1310 299-405 145-290 96 2000-80000 800-1200 Actual

nan Long Planned 350 300 275 - - 1000 200 534-1310 299-405 145-290 96 2000-80000 800-1200 Actual

23 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

Policy enacted by Ningqiang County People’s Government for house demolition for LCR includes Notice on Publishing Methods for Land Acquisition, Compensation and Resettlement by Hanzhong City People’s Government, Document No.33, 2006, and according to this document, actual compensation standards for house demolition in Shaanxi is shown as Table 4-10.

24 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

Table 4-10 Compensation Standards for House Demolition and Attachment Removal, Shaanxi Province

County Compensation Standards for House Demolition Attachment Others /City (RMB Yuan/m2) Brick Brick Earth Simplified Wall Well Stove Cement Tomb Relocati Transition -Wood -Brick RMB (RMB RMB each Floor RMB on Cost Cost /m each) each RMB/Hous RMB/m2 ehold RMB/Househ old/Month NIngqiang Planned 345-385 280-320 160-200 80-100 5-25 300-10000 100-180 2-20 150-3 - 200 Actual 00

25 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 Competent governmental authorities of Sichuan have issued policies on house demolition in Guangyuan City and Guang’an City for LCR, including Guangyuan City’s Compensation Standards for On-ground Attachments on the Acquired Land and Methods for House Demolition and Resettlement, Document No.10, 2009 and Compensation Implementation Methods for Land Acquisition, House Demolition and Resettlement with Guang’an City for LCR, Document No. 4, 2009, but policies of Nanchong City is unavailable, and such two documents indicate that actual compensation standards in Sichuan for house demolition vary by city. Please refer to Table 4-11 for details.

26 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

Table 4-11 Compensation Standards for House Demolition and Attachment Removal, Sichuan

County/ Compensation Standards for House Demolition Attachment Others City (RMB Yuan/m2) Brick Brick Earth Simplified Wall Well Stove Cemen Tomb Relocation Transition -Wood -Brick RMB (RMB RMB t Floor RMB each Cost Cost /m each) each RMB/Hous RMB/ ehold RMB/House m2 hold/Month Guangyuan Planned 300 265 245 500 260 Actual 480-750 250-460 230-400 50-150 15-65 400-1700 340-1100 25-50 1000-2000 - 400 Nanchong Planned 336 295 275 - 1320 90 Actual Guang’an Planned 400 350 300 - 500 500 Actual 290-580 260-350 260-290 170-190 4-15 100-300 60 200-300 300-850

27 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

Competent governmental authorities of Chongqing Municipality have issued policies on house demolition in Hechuan District, including Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City Hechuan District People’s Government, Document No. 15, 2008 and Notice on Adjusting Policies on Compensation for Land Acquisition by Chongqing City People’s Government, Document No. 45, 2008, and according to such two documents, actual compensation standards of Chongqing City are shown as Table 4-12.

Housing resettlement mode:

Gansu Province, Sichuan Province and Chongqing city have the following four basic forms: a) The placement of currency. b) EC preferential purchase. c) Monetary settlement and provide centralized resettlement point homestead combined . d) Combined with the construction of new countryside, into the resettlement housing project.

28 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

Table 4-12 Compensation Standards for House Demolition and Attachment Removal, Chongqing Municipality

Compensation Standards for House Demolition Attachment Others County/City (RMB Yuan/m2) Brick Brick Earth Simpli Wall Well Stove Cem Tom Reloc Transiti -Wood -Brick fied RM (RMB RMB each ent b ation on Cost B each) Floor RM Cost /m B RMB/ RMB/ RM each House Househ B/m hold old/Mo 2 nth Hechuan Planned 400 350 300 - 200 1000 150 Actual 220-441 165-395 140-371 60 50 500-2000 60-100 200 300-600

29 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 4.2. Comparison of Difference between Actual Policies and Policies in Relocation Plan

Majority of the actual implemented compensation standard for the land expropriation, demolition and relocation in the urban area and various counties of Lanzhou-Chongqing Railway is higher than the budget standard in the attachment 1 of the relocation plan. and minority of the indexes are slightly lower than the budget standard in the attachment 1 of the relocation plan.

4.3. Analyze and Explain Causes for Above Differences

For the growth trend of the annual output value for the land, the relocation cost of the building is enhanced slightly. Hence, the actual implemented compensation standard for the land expropriation, demolition and relocation is higher than the budget standard in the attachment 1 of the relocation plan.

4.4. Evaluation of Adaptability for Relocation Policy

The compensation and settlement for the land expropriation, demolition and relocation in this project complies with the requirement of the action plan for the relocation and settlement, determines the compensation, relocation and settlement policy according to the law, establishes several settlement schemes, and ensures the compensation cost for the land expropriation, demolition and relocation is appropriated in place before the land expropriation, demolition and relocation, as well as implements the negotiation and information disclosure, transparency system, survey of real objects, publication of affected quantity, publication of the compensation and settlement policy and signs the compensation and settlement agreement with the direct interest-related parties for the land expropriation, demolition and relocation. The direct interest-related parties understand the compensation and settlement policies for the land expropriation, demolition and relocation, and the complaint and opinion appeal channel is smooth during the land expropriation, demolition and relocation. The opinion of the Affected Residents can be reflected to the settlement department, and processed and feed back in time by the settlement department. Various compensation and settlement standards can meet the requirement of the direct interest-related parties basically, the personnel affected by the land expropriation are arranged and settled properly, and their production and lives related restoration work is carried out effectively. Majority of the personnel are satisfied with the compensation and settlement policy for the land expropriation, demolition and relocation.

30 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 5. Restoration of Revenue and Production

5.1. Implementation of Various Concrete Measures for Restoration

of Revenue and Production for Affected Residents

Though LCR project execution has acquired large pieces of land along the line and consequently inevitably affects work and living of local communities, particularly rural communities, through close coordination between LYRC and resettlement authorities along the line, faithful fulfillment of the commitments to resettlement plan and adoption of various methods to convert negative social impacts into positive ones, the project execution has received support from governments at all levels and APs along the line, thus minimizing negative impacts. The Institution will describe this in detail in social development action plan monitoring report, and only brief it in this report.

Through summarizing and analyzing, the external monitoring evaluation teams find that two trends of positive impacts are taking form and creating benign influence to communities along LCR. Firstly, when LYRC requires that when executing parties plan service roads and bridges that are required by project construction and infrastructure like power supply cable and water supply pipeline that can facilitate project construction, they need to consult with local county/district and village/township communities to obtain favorable external cooperative and working conditions for project construction. At current stage when the project approaches completion, especially in Gansu and other sections where the progress is the fastest, in addition to the temporarily acquired land that is to be re-cultivated by the executing parties according to prior agreement, those service roads and service bridges that may benefit future development of local communities may be kept after consultation with executing parties, so as to reduce infrastructure investment in local community development, which may also includes some temporary buildings used by executing parties and associated water supply pipeline and power supply cable. This arrangement in fact leaves lots of infrastructure to local communities along LCR that can be devoted to community development, and hence reduce the investment of local communities in these areas and eventually the burden of local residents. Secondly, large pieces of land outside of the red line has been temporarily acquired along the railway for purpose of project construction, of which some land may have difficulty in re-cultivating, such as precast beam field where thick foundation is made, and discarded soil and dreg fields, particularly those for tunnel construction. Such land is compensated by LYRC as permanently acquired land, but is still in terms of nature as temporarily acquired land. Some precast beam fields have been used by local governments as construction sites to attract investors and developers and thus become important local leading projects.

31 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

5.2. Implementation of Various Concrete Measures Provided for

Restoration of Production and Commerce for Enterprises and

Shops and Employee’s Position

The settlement work of the affected enterprise and public institution and individual industrial and commercial households is developed smoothly, and the main settlement mode is the currency settlement according to the compensation policy. The affected enterprises can obtain the compensation fee according to the evaluated compensation price standard. The affected enterprises will seek for the proper settlement place of the enterprises, and the settlement department will help to transact the land expropriation procedure according to the settlement policy. At present, the affected enterprise has been compensated for the demolition and relocation, including the compensation fee for the land expropriation, the compensation fee for demolition and relocation, the relocation fee and the compensation fee for the downtime and loss. However, the procedure transaction for the land use of the settlement is reporting, most of enterprises don’t determine their settlement land. Most of enterprises take the rent building or the land that is not expropriated completely in the factory area to adjust the production line for the production again. The following is the investigation of the sample settlement result for the affected enterprise and public institution and individual industrial and commercial households.

For the schools to be relocated for the effect of the project, the compensation fee will be paid to the unit owners, namely, the township or the village committee which is responsible for the reconstruction. The compensation fee shall meet the standard for the reconstruction. Furthermore, it is necessary to pay a certain transition fee. If the schools or clinics shall be expanded, the township or village committee will be responsible for paying the extra cost. Their condition will be improved after the affected schools relocate.

5.3. Implementation of Various Concrete Measures Provided for

Restoration of Livelihood for Weak Groups

In addition to the compensation according to the policy, the Affected Residents are helped and concerned elaborately. For example, implement and provide the demolished household with the land for the construction of the new building freely, and provide the guide to purchase the building 32 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 material and prepare for the new building base. Special attention shall be paid to the patient, disable and woman dominant household, to provide them with the labor help or necessary subsidy according to the actual situation. For the relocation of the new building, it is necessary to negotiate with the affected households, and provide the potential weak household with the priority, including the poor household, elderly household, disable household and woman dominant household. For the household to be helped, the village and the construction unit provides the necessary labor and material help, to ensure their new building is the same as existing building at least. For the woman dominant household and the disable household, the village and the construction unit provides them with the labor freely. In this way, it can save the labor cost of the Affected Residents in the compensation, to improve the building or use it in elsewhere.

The women in the rural and city share the equal right as that of men, they are not discriminated, and their benefit is not neglected. They participate in several projects to help the poor girls out of school to return the school, provide the poor women with the help and training, and help them to get the small amount of loan. At the same time, they help to train the women cadres and improve the health level of women. The women’s federation and other proper institute establish and implement the measure to restore the revenue of the women and their households. It determines the potential weak households and groups. The following will describe the poverty alleviation measure for the affected groups, to enable them to benefit from the Lanzhou – Chongqing Railway Line and restore the livelihood sustainable.

So far, the manpower used by various project contractors for the Lanzhou - Chongqing Railway Project is up to105074 thousand man-days, and it employs the local residents in the affected area of the railway line for 41177 thousand man-days, 39.2% of the total amount of labor. The employed local poor residents is 20225 thousand man-days, 49.1% of the local employed person, and the employed local women is 2945 thousand man-days, 7.2% of the local employed person. The employed local poor residents will get the salary of CNY 100-140/working day for the railway construction. The poor family gets the revenue up to CNY2456.49.million for the railway construction, and the employed women get CNY 357.77 million at least. The agencies to provide the railway construction with various services are up to165. The expense for the local purchase of the construction material for the whole railway line is CNY 8967.99 million, including CNY 2730.70 million for the purchase of the sand, CNY 2055.11 million for the stone material, and CNY 4182.19 million for other building material. At the same time, it will pay CNY844.10 million of the life expenses on the consumption for the construction personnel of various project contractors. In the material purchase, the construction material provided by the poor family is CNY1045.93 million and the consumer goods provided for the contractor’s construction team by the poor family is about CNY 184.43 million.

33 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

5.4. Investigate Detailed Index of Various Annual Revenues and

Exposure Change for Affected Residents by Sample Tracking and

Comparison and Analysis of Baseline Data

Net Income Statistical Table of Formers for Various Counties in Recent Three Years Per Capita Net Income(Yuan/Person)

Province in 2008 in 2009 in 2010 in 2011 in 2012 in 2013 Region (City)

Gansu Lanzhou 3503 3923 4587 5229 6224 7100 Province Dingxi 1150 2380 2701 3074 3612 4226 Longnan 1819 1995 2299 2621 3088 3590 Sichuan Guangyuan City 2740 3482 4036 4895 5649 6498 Province Nanchong City 3520 4182 4814 5837 6771 7850 Guang’an City 2150 4665 5377 6513 7474 8600 8523 9801 11270 Chongqing 4120 5877 6929 City Hechuan City

The per capita net income of the rural residents for various counties along the Lanzhou - Chongqing Railway Line grows by 12-24% on the year-on-year basis, with large growth amplitude.

Based on the analysis of the survey, the affected population, especially women, vulnerable groups of personal interests are fully protected; affected by the removal of the enterprise, the school has also been placed properly, especially after the demolition of rehabilitation of schools, school conditions have been greatly improved. In addition, due to the construction of the railway along a large number of water conservancy facilities, including road, power lines, communication facilities and other infrastructure 100% have been the restoration; all kinds of vulnerable groups from the project requisition of production and life directly affects attention, and in the local community's assistance, resettlement department for help, in order to realize the reconstruction of life; the project land acquisition, demolition has been basically all appropriated in place, affected people get full compensation for land acquisition demolition, living conditions, traffic environment, complete infrastructure, they are significantly improved. In addition, the targeted introduction of reasonable, preferential placement and support policies (such as social security, urbanization, employment training, organized labor export), also makes the poor family labor through policy support, obtain employment, or the provision of railway construction to the railway construction mechanism to meet the quality requirements, building materials the railway builders or provide to consumer service and so on many kinds of ways to obtain direct or indirect economic benefits, reduce or out of poverty. At the same time, project brought environmental change is also changing 34 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 the poverty concept, strengthen the concept of market economy, so that they pay more attention to education and information, to participate in, the development of agricultural income outside.

The concrete measure in the Lanzhou city is as follows:

1. Strengthen the policy of supporting agriculture and giving favorable treatment to farmers. Enhance the land transfer benefit and the ratio that the new revenue of the cultivated land occupied tax to the agriculture for the government greatly, and increase the investment in the rural infrastructure and the development of social affairs greatly, to ensure the growth ratio that the city-level finance every year is put into the rural is not lower than the growth ratio of the financial revenue this year. We will continue to increase direct subsidies and infrastructure construction for grain producers, and implement the measure of All for One Residence Registration and All for One Deposit Passbook. Develop the agricultural insurance actively, establish and perfect the agricultural risk and prevention mechanism by combining with the policy agricultural insurance and the finance subsidies, expand the pilot program of policy agricultural insurance and arrange dedicated capital for the premium subsidies of the agricultural insurance. Establish and perfect the incentive mechanism to increase the investment, guide the social capital to the rural by the finance discount and subsidy, guide the farmer to invest into the public facilities with direct benefit, and establish the diversified investment layout of the startup by government investment, promotion by credit investment, investment by farmer actively and social participation broadly. 

2. Strengthen the infrastructure construction. Implement the hydraulic engineering reformation and storage capacity construction for the Yinda, Sandian and China Xidian Group, encourage and support the farmers to develop the farmland water conservancy facilities, such as the irrigating station, rainwater catchments engineering and small-sized drainage facilities, and promote the property right system reform of the water resource and the small-sized water conservancy facilities actively. The effective irrigating area is up to 1.35 million acres, the conservancy irrigating area is up to 1.15 million acres and the guaranteed farmland irrigation ratio is up to 85.4% by 2010.Strengthen the financial capital and national debt fund investment, and speed up the construction of the rural road passage project and the countryside access project, to implement the bituminous (cement) road for all administrative counties. Speed up the reformation of the rural grid, to ensure to provide every household with the power supply. Strengthen the source protection of the drinking water, and solve the safe drinking water issue of 110,000 rural populations and the drinking water issue of the dry area for 10,000 rural populations every year. Solve the safe drinking water issue in the rural area overall by 2012, and the tap water access ratio in Sichuan province is up to 100%. 

3. Deepen the rural reform further. Continue to deepen the reform of the water pipe system, collective forest rights system and rural tax system, perfect the rural resident land system and rural 35 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 land expropriation system, control the land expropriation scale strictly, standardize the land expropriation procedure, implement the compensation standard, and perfect the social security system of the former for the land expropriation. Issue the supporting measure for the land circulation, cultivate the intermediary service organization for the land circulation, establish several the land circulation organizations gradually, such as the land bank, and establish the land circulation market of the rural land contractual management right at the city, county (district) and countryside (town) level. Each county will determine the pilot village, to explore the diversified land circulation modes, implement the land circulation to the operation main body, such as the large-scale agricultural machinery, large-scale planting and cultivating company, leading enterprise and cooperative organization by the summarization, reclamation and development of the wasteland and summarization and centralization of the contractual land, and develop various forms of moderate large-scale operation of land. Develop the small amount load and small finance service in the rural area greatly, normalize civil credit and loan, establish and perfect the rural loan security system, and explore the concrete loan transaction that takes the agricultural production and operation facilities as the collateral actively, and improve the financing capacity of the farmers. 

4. Upgrade the supporting capacity of the science and technology continuously. Perfect the popularizing platform of the agricultural science and technology, establish new popularizing system of the agricultural science and technology, and create the popularizing service network of the agricultural science and technology of County with Center, Countryside with Station, Village with Agricultural Science and Technology Popularizing Personnel, Community with Farmer Technical Personnel and Household with Agricultural Technology Expert, to form the popularizing system of the agricultural science and technology together with the government support and market guiding as well as the charge service and free service. Explore, perfect and make use of the Four-in-one science and technology service mode further, and pay attention to promote the special inspector to establish the close relationship with the agricultural leading enterprise and the agricultural cooperative, to solve the difficulty in the production. Reinforce the rural information service, strengthen the rural information network construction, speed up the county and village information station construction, and propagate the dynamic management of the information station and the information team. Establish one grass-root information team with 80 person which covers the city, county (district), countryside (town) and enterprise and one special employed professional technical information team composed of 20 technical personnel, to provide the all-around information service for the government decision-making, farmer income growth, firm growth and technology development and popularization. 

5. Strengthen the organizational leadership in earnest. The municipal establish the leader team to increase farmers income which is composed of the municipal committee, municipal government leader, to enhance the leading to implement the income growth project, and hold the conference to 36 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 research on the income growth periodically. Various counties shall also establish corresponding leader team, to represent the requirement of the major task actually in terms of the work arrangement, finance allocation and leadership establishment. Related department of various counties and municipals shall combine with the actual condition to establish the implementation scheme as much as possible, make clear the objective and task, determine the work schedule and establish the security mechanism, to ensure the implementation of this opinion.

The concrete measure in the Dingxi city is as follows:

Strengthen macro-control of the government, and establish the long-run increase mechanism of the farmer income.

Place the income growth of the farmers under the framework of the common prosperity for the people in this city unified. All levels of government functional department shall continue to insist on the policy of the giving more, taking less and balance development, to increase the "three rural" development support continuously under the condition that the stability and continuity of various preferential agricultural policies are ensured, and pave a highway and fast track for the income growth from the system guarantee, preferential policies, technical support and development environment.

Efforts to increase the level of agricultural industrialization, to solidify the foundation for the income growth of farmers.

Take the capital that the central and provincial finance department used to increased support for the industrialization of agriculture, to focus on supporting the development of the potato, leading enterprises and brand-name product in the underdeveloped area, and support the standardized base construction, livestock industry, agricultural extension service system, agricultural quality standard system, monitoring and testing system and information service system construction. Solve the problem of insufficient funds for the leading enterprises to acquire the agricultural products by means of innovative approaches of the credit guarantees means and issue relevant policies, to support the development of refined processing industry of agricultural products and solidify the foundation for the income growth of the farmers in the whole city.

Accelerate the transfer of rural surplus labor, and open up new channels for the income growth of farmers.

The farmers work outside the home is the important source of the income growth of farmers. All levels of government will firm continue to accelerate the transfer of surplus labor in rural areas, exert the administrative functions and advantages of the government in the organization management, information delivery, labor mediation, skills training and rights, and do everything possible to relieve the worries of migrant workers, to ensure the sustainable, stable, fast growth of 37 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 the income for farmers.

Continue to inhibit the agricultural prices and mobilize the investment enthusiasm of farmers.

All levels of governments take the economic, legal and necessary administrative means, to continue to inhibit the agricultural prices and maintain the agricultural price is within the tolerance scope of the producers, operators, and users, to protect the interests of farmers.

5. Continue to implement the farmer-friendly policy, and exert the full effect of policies. The one is to continue to increase the intensity of farmer-friendly policy, and focus on improving standards of food subsidies, as well as trial implement the direct subsidies for farmers to purchase the agricultural material. Implement various policies to support and benefit agriculture, and ensure full and timely implementation of incentives. The second is to adjust the investment in agriculture for the national and local government, find a way to reduce the ratio for all kinds of indirect investments and indirect supports, and try to improve direct support to farmers and the proportion of direct subsidies. The third is that city, county and township with possible condition shall issue some special preferential agricultural policies and provide the subsidies to farmers, in addition that the national and provincial government increases efforts in agriculture support.

The concrete measure in the Longnan city is as follows:

1. Pay close attention to the industrial development characteristics and widen the channel to increase farmers’ income. Continue to increase the investment in the construction of the characteristic agriculture industry base, adhere to the industrial layout of the "Ten thousand yuan in Chuan Dam vegetables, create more than one thousand grain, livestock and medicine in the woods, all around the garden birds", develop four pillar industries, such as the walnut, ginkgo, livestock (cattle, pigs and chicken) and fruits and vegetables (vegetables and watermelon), focus on cultivating four regional industries, such as the aromatic plants, seedling breeding, fast-growing timber and edible mushroom, and focus on the development of seven characteristic Chinese products, such as the Chinese herbal medicines, tobacco, mulberry, chestnut, maize seed, aquaculture and honey in recent years. A large number of excellent special products have gradually developed into the new economic support of the county agricultural efficiency and rural incomes growth for farmers, such as the walnuts, vegetables, "three garlic", watermelon, tobacco and pigs.

2. Develop the circulation of the rural land management right and dig out the potential for the income growth of farmers deeply. The farmers for the land circulation in the whole county are about 4191, which are related to 15 towns and 213 villages, and signs 2,707 land circulation contract, as well as establish 1,799 accounts. The land circulation area is 16,800 acres. Most of farmers increase the income effectively and speeds up the restructuring of the agricultural

38 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 industrial structure in our county by the transfer of land contractual management rights, and get good economic and social benefits.

3. Implement preferential agricultural policies and open up ways to increase farmers’ income. Our county continues to take the implementation of the benefiting the agriculture policy in the central and provincial government as an important measure to urge the rural economic development and increase farmers’ income, and promote the rapid development of the agricultural and rural economy effectively this year.

4. Try to promote the industrialized development of characteristic agriculture. Development 3 leading enterprises in the agricultural industrialization of city-level key characteristic agriculture, and declare two ore more province-level key leading enterprises by supporting the development. There are 1 – 2 leading enterprises with the annual sales revenue up to 100 million Yuan and 5 – 6 leading enterprises with the annual sales revenue up to 10 million Yuan. Perfect the dynamic management mechanism of the leading agricultural enterprises, and improve the quality and driving ability of enterprises. Perfect the interests connecting mechanism, encourage the specialized cooperative organization of farmers to participate in the leading enterprises, encourage farmers to participate in the leading enterprises by the land contractual management rights, capital and technology, encourage the leading enterprises to develop the order agriculture, establish a risk fund and secondary rebate type, form the economic community with the benefit sharing and risk sharing, to resist the market risk and enhance the industrial income. At the same time, continue to hold the production and sales docking conference for the large sections of characteristic agricultural products. The government establishes the platform, the enterprises and associations operate over the platform, and it associates with the farmers with the ability, to open up channels of investment broadly, develop the sales market of the characteristic agricultural products, create the classic brand, enhance the market competitiveness and expand the marketing revenue of agricultural products.

5. Continue to promote large-scale transfer of rural labor. The per capita wage income for the farmer in the Longnan city is 411.31 in 2005, which is 30.4% of the per capita net income for the farmer. The per capita wage income for the farmer in the Longnan city is 814.2 in 2009, which is 35.65% of the per capita net income for the farmer, going up by 5.3% compared to that in 2005.It fully indicates that the municipal committee and the municipal government pay close attention to the transfer of rural labor and expand outside employment during the "Eleventh Five-Year" period. The policies and measures to increase the economic revenue achieve remarkable results. Various counties will continue to promote the large-scale transfer of the rural labor, and strengthen labor employment skills training, and enhance their overall skill and quality, to achieve a substantial income growth for the farmers in future.

39 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 The concrete measure in the Guangyuan city is as follows:

Focus their efforts on the "three rural" work, and accelerate the building of new socialist countryside.

Accelerate the development of modern agriculture. Promote the adjustment of industrial structure, develop the characteristic farming and modern animal husbandry vigorously, strengthen the characteristic farming, such as the kiwi, mushrooms, walnuts, tea, tobacco and olive and other characteristics of farming, and implement the one hundred million chickens engineering in-depth. Try to build a modern agricultural park, improve the established park, and start to build 10 modern agricultural demonstration parks and 65 animal breeding ecology communities. Cultivate leading enterprises greatly, and cultivate two leading enterprises with the revenue hundreds of million Yuan, recommend declare one national leading enterprise, and add two provincial leading enterprises. Perfect the interests coupling mechanism, develop the specialized rural cooperative organizations actively, and strive to add four provincial demonstration cooperative organizations. Promote the agricultural standardization and brand building vigorously, Widen the scale of the Seven Guangyuan Products, Jianmenguan Forest Chicken and, Zengjiashan Open Vegetables, and enhance the industrial management level of the agriculture. The total agricultural output value is up to 14 billion Yuan. Continue to promote the "Help Farmers Increase Income and Enrich Farmers" action, and increase farmers’ income by various channels.

Strengthen the construction of the rural infrastructure. Accelerate the construction of key water conservancy projects, such as Tingzikou. Implement the continuous establishing of the auxiliary facilities for the irrigation area vigorously, accelerate the project construction of the main river bank, medium- and small-sized rive governance, flood disaster prevention, smoke and water auxiliary facilities, and promote the construction of the small water facilities. Implement the land consolidation project, and establish the farmland with the high standard for 40,000 acres. Optimize the structure of the farm machinery and equipment, and improve the level of agricultural mechanization. Complete the annual task of building rural roads, and resolve the outstanding issue gradually, such as the Duantou road and the bridges crossing change. Implement the reformation and upgrading project of the rural power grids. Solve safety issue of the drinking water for 50 million rural populations, and establish methane pool for more than 18,000 rural households.

Strengthen the ecologic and well-off village building efforts. Perfect the new rural planning around the "Four News and One Building" target, and start to build ecologic and well-off village with 200 villages and 40,000 households in accordance with united village and the large-scale promotion principles. Highlight the industrial features, strengthen the construction of the rural public services and grass-roots political power, cultivate the new farmers, and explore the establishment of a new integrated rural body. Accelerate the Tingzikou resettlement, and continue to focus on the uphold and industrial development after the resettlement, to promote the stability in

40 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 the resettlement area. Speed up the preparation of the new round of poverty alleviation and development planning, enhance the poverty alleviation and development efforts, give people work in place of relief subsidies and implement the ex-situ relocation poverty project, hold the "Bag Gang" activity greatly, to speed up the rural poor people to enrich.

Try to protect and improve people's livelihood, and strengthen the building of a harmonious Guangyuan.

Implement the livelihood projects in depth. Implement the policies and measures to improve people's livelihood conscientiously, and implement the top ten livelihood projects, such as the employment promotion, poverty alleviation, basket, student education, social security, health care, housing people, infrastructure, environment, culture and sports. The total investment is more than 8.1 billion Yuan.

Hold the employment and social security work well. Perfect the policy system and long-term mechanism for small amount loans to promote the entrepreneurship, and promote entrepreneurship and urge employment. Focus their efforts on the employment of five key groups, and achieve the objective of Employment for Every Household basically. Carry out the "Employment Assistance Month" series special events continuously, expand the employment field of college graduates, help the low-income urban families and the demolished farmers for the employment, and promote stable employment of migrant workers. Increase 30,000 new jobs in cities and towns annually, hold the skills training for 1.6 million migrant workers, and provide 30,000 new jobs for the new transfer of the rural labor. Perfect the social security and assistance system of the urban and rural residents, increase the level of social security steadily, and implement the minimum living allowance in the urban and rural area.

Accelerate to perfect the rural health service system, and provide the people with basic medical and public health services. Strengthen the regulation of the food, pharmaceutical and medical market order, crack down the illegal behavior strictly, such as the illegal addition and abuse of food additives and other illegal selling fake goods, and safeguard people's health and safety. Promote the production of excellent spiritual products, carry out various mass cultural and sports activities, accelerate the protection and transformation of cultural resource, and promote the development of cultural industries. Develop the radio and television, file, disabled, charity causes greatly, and strengthen the disaster prevention and mitigation, aging, women and children, ethnic and religious work further.

Regulate the income distribution relationship reasonably. Strengthen the regulation of income distribution, try to achieve the income growth and economic development simultaneously, and the labor compensation and labor productivity growth simultaneously. Perfect the normal wage growth mechanism enterprises’ employees, and enforce the minimum wage system and collective negotiation system of the enterprise’s wages. Perfect the monitoring systems of the wage payment 41 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 for enterprises, to ensure that the wages of workers (especially migrant workers) are paid in full.

The concrete measure in the Nanchong city is as follows:

1. Promote the agricultural restructuring, and tap the potential of agriculture to increase the income fully. This is a realistic way to increase farmers' income. Focus on the development of specialized agriculture, agricultural facilities and modern agriculture, speed up the construction of the specialized agriculture park, optimize the quality of agricultural structure, improve the quality, safety level and market competitiveness of agricultural products, and create a number of specialty products with brand value.

2. Enhance skills training for farmers, and widen the channels to increase farmers’ income. This is the fundamental policy to maintain the sustainable and steady growth of farmers' income. Meet the requirement for the changes in market demand, industrial structure upgrading and growth mode transformation, focus on the development of agricultural products processing, services and other labor-intensive industries, transfer more rural labor to the circulation, processing and service industries, and create income from the secondary and tertiary industries. Organize and implement the Sunshine Project training, perfect the information services, safeguard the legitimate rights and interests effectively and increase the income of migrant farmers.

3. Increase the investment in the agriculture and rural development. Increase the industry nurturing agriculture and cities supporting rural, to ensure the steady growth of financial funds for supporting agriculture. Strengthen the infrastructure construction, such as the rural roads, rural water and rural communications, enhance agricultural disaster mitigation capacity, accelerate the development of social undertakings in rural areas, and improve the living conditions of farmers overall.

4. Deepen the rural reform, accelerate the establishment of policy-oriented agricultural insurance system, establish the agricultural risk prevention mechanism and reduce the losses of farmers caused by the animal disease and natural disasters. Speed up the process of the rural land transfer and the rural financial system reform, and protect the sustainable development of farmers' income from the perspective of the system. Further Implement the market regulation of the farm products, such as the food and pigs, protect farmers' enthusiasm for production, and try to form a stable growth mechanism of farmers’ income.

The concrete measure in the Guang’an city is as follows:

1. Regulate and optimize the agricultural structure, and tap the potential of the industry to increase the income. Regulating and optimizing the agricultural structure is the key to ensure the income

42 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 growth of farmers. Guang'an city has taken a large step in the agricultural restructuring during the "Eleventh Five-Year" period, and the results are obvious. The husbandry becomes the pillar industry of the agriculture and the output value of husbandry in total agricultural output value is up to 45.3%.The planting structure has been regulated, the ratio of the grain to the crops is up to 78.2:21.8 in Guang’an city at the end of the Eleventh Five Year Plan. Firstly, we must continue to promote the agricultural restructuring during the Twelfth Five Year Plan, and take the fine, intensive, industrial way in accordance with high quality, efficient and ecological principles. Secondly, we must develop the industrial management of agriculture actively. To expand production scale, improve competitiveness and driving force for the target, focus on the leading specialized agricultural industry closely, develop the industrialized business model of Company, Base and Farmer, fostering the growth of leading enterprises and lead the construction of the agricultural production bases and the income growth of farmers in the Guang'an city. Thirdly, we must develop the rural private economy vigorously. Strengthen the guide and service for the development of the secondary and tertiary industries in the rural area, create the equal competitive environment in terms of the market access, financing conditions, policies supporting, and develop the agricultural product processing industry and rural services greatly, to widen the channels to increase farmers’ income.

2. Strengthen the livestock industry, and promote the overall upgrading of the livestock industry. The livestock production in the Guang'an city made a significant contribution to the growth of farmers' income in the Guang'an city, and becomes one of the highlights for the farmers' income during the Eleventh Five Year Plan. It is necessary to speed up the livestock production of the pigs, poultry and eggs further, develop the cattle, sheep and other herbivores actively, strengthen the construction of the livestock and poultry breeding system, focus on the breeding and promotion of improved varieties, and improve animal epidemic prevention and control, to Promote overall upgrading of the livestock development.

3. Transfer the rural labor well, and Stabilize the income growth of farmers. It is necessary to take the implementing the workforce training and improving the quality of labor as the breakthrough for the output of the rural labor force in the Guang'an city, and transfer to the organized output from the spontaneous output mainly. At the same time, provide the migrant workers who return home for entrepreneurs with the preferential policies, promote the development of the local economy, and ensure continued growth of farmers' income.

4. Strengthen the cultivation of the rural market and regulate the rural market supervision.(1) Regulate agricultural markets, prevent price hikes, and prevent counterfeit products from harming and cheating farmers, (2) Regulate agriculture-related services, control the excessive price growth, and protect the interests of farmers, (3) Establish and grow the rural info market, to provide farmers with all-around info, such as the supply and demand, price and distribution, (4) Regulate

43 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 the labor market, avoid the blindness that the farmers go out to work, and prevent farmers from being cheated, to create a good environment to increate farmers’ income.

The concrete measure in the Hechuan city is as follows:

We should persistently and vigorously advance urban-rural integration by supporting agriculture with industrial development, developing rural areas through urban development, promoting urban development through rural development. We must increase the investment in rural infrastructure development to consolidate the construction of regional road with a total length of 7.2 kilometers from Sanhui to Liuyin and Jindaoxia and to carry out the project of building a 50-kilometer long concrete sidewalk in rural areas. We will also improve the drinking water project for people, popularize the experience of new communities’ construction in Changsheng and start to build a number of new communities opportunely. What’s more, we should adjust agricultural structure actively and accelerate to develop modern agriculture of grain, oil, live hog, aquatic products, vegetables and fruits on the basis of principles for the finest industry, the most excellent brand and the strongest leading enterprise. We must ensure a total output of grain of over 11 thousand tons, 17 thousand hogs production. Further processing projects for agro- products should be introduced intensively and further processing bases for radix puerariae and dendrocalamus affinis should be established so as to extend agricultural chain and to raise value-added of agro-products at the most. And we must develop industrialization of agricultural leading enterprise, boosting the cultivation of agro-products, like the loach and beef cattle and developing large farming and aquaculture families. In line with the projects for forest development, we must promote economic fruiters and forests and stick to the policy of making use of local resources. Besides, we must strengthen the construction of rural public service facilities and increase the inclination to the education, sanitation, civilization and social security in rural areas. We must push forward the spreading of public service outlet, support and improve schooling conditions in rural areas, accelerate the standardization of village-level clinic and the village-level construction of cultural, sports and exercise facilities depending on village-level activities. Seeking funding and introducing projects must be emphasized as well. Therefore, we should concentrate on the significant agricultural projects and make effort to win more project arrangements and significant projects for the distribution of Sanhui through continuously following up the emergency project for water source and regulation project in the small drainage basin in Mount. ,; reinforcing contact with higher authorities and winning support from regional municipal sectors.

44 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

5.5. Evaluation of Income Restoration Degree for Affected

Residents

The compensation fee for the land expropriation and the subsidy fee for the settlement are in place according to the planned amount as a whole, and the affected villages and groups adjust the land or take the currency settlement after the land expropriation. Of which, the currency settlement is to provide the compensation fee for the land expropriation and the subsidy fee for the settlement for the affected residents. At the same time, various affected villages and groups which take the land adjustment use the compensation fee for the agricultural production or allocate it to the whole group per capita. The land expropriation in two provinces has a minor effect on the formers along the railway line as a whole, especially for the area with low agricultural dependency. Hence, the land expropriation and settlement gets better effect under the hard work of the railway department and various levels of local governments.

For four provinces take the principle to compensate for the demolition and relocation, the key issue for the success of the relocation is the settlement of the demolished households. Regardless of the demolition and relocation for the individual or the enterprise shop, or the temporary building demolition or the illegal building demolition, it can be basically compensated enough and various considerations are taken into. You can find these items from the compensation list, from the indoor decoration; phone set transfer, network management transfer, and corridor, wall and flat dam removal to the compensation for business loss, relocation fee, relocation award in advance and certificate fee for building purchase. The compensation standard for the demolition and relocation in this project is rather high in the demolition and relocation plan. However, it is still out of the original standard greatly during the actual implementation. In particular, the local government puts a large number of the capital into the purchase of the land at the central settlement point, to implement the supply of water, electricity and road and leveled ground. The settlement result is to change the original building into the new building and the narrow building into the broad building, as well as change the simple building without the auxiliary facilities into the commercial building with the complete auxiliary facilities. Hence, the demolition and relocation result is usually acceptable for every one.

The following will describe the settlement of the production and lives for the affected counties, regions and countryside’s for the land expropriation and the affected households for the land expropriation, demolition and relocation in the sampling survey. One of the important factors for 45 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 the rapid growth of the formers income is the policy effect. The abolishing the agricultural tax and implementing general subsidies for purchasing agricultural supplies and subsidies for purchasing superior crop varieties and agricultural machinery and tools gets obvious effect. The price stabilization of the agricultural products curtains the rapid growth of the price for the agricultural production material. Maintaining the price stabilization of the agricultural products pays an important role in the income growth of formers. It can improve the formers income actually when they enjoy the preferential policy.

The ratio of local labor for formers along the railway line enhances with the rapid development of the industry parks in recent years. Related departments shall supervise and management the labor market, and normalize the enterprise’s employment and the labor contract system further, improve the safe production facilities further and enlarge the coverage of the employment injury insurance further.

6. Relocation and Reconstruction of Buildings

6.1. Relocation and Reconstruction Mode and Measure for Houses,

Enterprise and Public Institutions, Shops, Schools and Other

Buildings

All buildings to be demolished (including the houses) will take the principle of the local reconstruction in the Lanzhou – Chongqing Railway Project.

The relocation of the new houses is determined after the negotiation with the village collective and the affected households. The formers would like to build the new houses at both sides of the road or the village road. The villages will meet their requirement as much as possible, and the formers can select the concrete address by themselves within the range of the land use for the houses that the village can provide. At the same time, it combines with the overall planning of the new rural construction.

To enlarge the area or improve the quality when the formers rebuild the new house, it is necessary 46 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 to pay the extra cost by itself. The formers can determine whether it is necessary to enlarge the area or improve the quality according to their own economic strength.

The affected households are taken care by the county railway support office, the town government and village committee during the relocation. Various levels of government will help you to crack the difficulty actively.

Special assistance will be provided for the women dominant households. Make use of the resource (capital and labor) and other special measures required to ensure the women dominant households are satisfied with the demolition and relocation and settled with the house rationally.

For the relocation of the households with the poor financial condition or the disable households and five-guarantee households, the village committee, town government and county railway support office will pay more attention to them and provide them with the assistance. If they can not rebuild the new house, various levels of government will help them for the relocation and settlement. The concrete mode includes helping them to rebuild the new house or paying the compensation fee to purchase the house with the equivalent quality and corresponding area as original house for them.

Relocation Mode

Rural House

The affected households will be provided with the compensation for the demolition and relocation. The cost of the residential land will be calculated individually, which will be paid to the village collective and the allocation method will be determined after the negotiation between the village collective and the affected residents.

The Lanzhou- Chongqing Railway Line takes the local principle in terms of the restoration of houses and other buildings, which is usually in the village or town.

The rural households live dispersedly for they build the new house by themselves. The compensation fee for the demolition and relocation includes the cost of the labor and the raw material. The farmers who build the new house can determine by themselves that (1) increase the house area and improve the comfort ability, (2) build one house similar with the original one and take the remaining compensation fee in other aspects. The relocation of the new house can be negotiated with the residents or groups jointly, and then the village transfers the new house base to formers freely. The relocation measure insists on the policy to alleviate the pressure of the rural land occupancy, and takes the centralized relocation, collective house or apartment building mode.

The relocation and settlement of the formers to be migrated out of the village mainly centralizes in the small town. This case is possible, and we will implement the relocation as a whole and the

47 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 urbanization process in the whole project area and encourage the development of the town and the county center. Furthermore, several new stations are adjacent to the city area, which is advantageous to combine with the village and the adjacent city area.

Finally, the relocation of the building shall combine with the local development plan and take the high-degree centralized building mode. The relocation and settlement shall integrate with the town development and planning and the street and shop construction according to this mode. This section provides some suggestion for the affected residents that the local government is responsible for the street and the infrastructure construction and the affected residents build their new house according to the unified planning. The affected residents receive the quantity and quality of the house built for them. Furthermore, the affected residents can select the current compensation if they will and select the relocation of the new house by themselves.

If it is necessary for the rural residents to use the collective land in this village to build the new house, the rural residents shall put forward the application for the land use, and it is approved by the village conference, reviewed by the village committee, audited by the town government and approved by the county government. This allocation is free, and it is only necessary to pay a little fee for the application procedure. This fee may be calculated in the compensation fee individually or be free.

It will take 3- 5 months for formers to rebuild the new house. The new house is rebuilt by the formers themselves. They usually entrust the local contractor to rebuild the new house by the special contract. They can get the material of original demolition and relocation freely, which will deduct the material fee of original house from the compensation fee.

City House It is the commercial house in the city, and the residents in the city can be compensated with the relocation cost, namely compensated original house at the market price. In this way, you can purchase the new house with the similar quality and address as original house from the market. The affected resident in the market can be compensated for the demolition and relocation.

The other case is that some residents in the city purchase the land to build the house by themselves in the city. This case is rare. It is necessary to allocate these affected residents with the land for the relocation within the same district (or better location) and provide them with the compensation fee according to the type of the house, as well as subsidy them for the demolition and relocation and the new building.

Compensation and Transition Mode

Although it shall not demolish the house before the new house is built, some affected residents select to build the new house by themselves in other projects. For they need to use the material of

48 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 original house, they will build the new house after the original house is demolished when they build the new house for the rural residents. It means that it is necessary to provide the temporary house as the transition period for 3 – 5 months, and the affected residents will be provided with the compensation for the temporary living during the transition period. The affected residents usually live in their relatives and friends at this time. If the affected residents are relocated to the new house within a short time, they can reserve the compensation fee for the temporary relocation as the extra cost, which may be dominated and used by themselves.

The compensation fee for the demolition and relocation is paid to the household for the demolition and relocation fully before the demolition of original house. All accessories related to original house will be compensated, such as the wall, toilet, pig bed, dam, well, electric cable, fruit tree and other trees and flowers of formers.

Special attention will be paid to the poverty households and other weak households (such as the disable household, women dominant household and elderly household) of the relocated households. If there is any difficulty in the relocation and reconstruction of the new house, the village committee and the town government will help them in time. It may be the method guide, material provision or cash help. In a word, it will ensure all relocated households may relocate smoothly in several assist measures, and the living condition after the relocation will be the same or better than that before the relocation.

The compensation fee usually complies with the standard per square meter for some building. For some demolished households, it is necessary to be paid with the extra compensation fee if the compensation standard is not enough to provide the reconstruction cost. For example, the construction material or the labor cost may be higher the compensation standard in some areas. It is necessary to take the additional compensation into account under this case.

Affected Schools and Government Buildings

For the schools to be relocated for the effect of the project, the compensation fee will be paid to the unit owners, namely, the township or the village committee which is responsible for the reconstruction. The compensation fee shall meet the standard for the reconstruction. Furthermore, it is necessary to pay a certain transition fee. If the schools or clinics shall be expanded, the township or village committee will be responsible for paying the extra cost. For China pays attention to the education, most of the affected schools will be improved after the relocation in general.

Affected Enterprises

The compensation fee of the affected industry and trade enterprises will be calculated according to the re-purchase price of the land, building, equipment and other accessory. The compensation fee includes the relocation fee and the revenue loss for the production stop and reduction, which will

49 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 be calculated by the market price for the demolition and relocation. The enterprise will determine whether it will relocate or reconstruct the affected facilities. The affected employee will be paid with the wages compensation during the production stop/transition and be provided with the re-employment opportunity after the relocation of the enterprise. If they determine not to reconstruct the facilities, which causes the unemployment of the employee, the local government shall provide proper support to ensure the re-employment of employees or be awarded with the pension to maintain their living standard.

Any private shop affected by this project will be compensated according to the principle the same as that of the enterprise. The owners will be helped by the local government to settle at the proper location as soon as possible, to prevent from or minimize the loss. If there is any loss, it shall be compensated before the demolition. The shop for the household will be recorded into the asset list of the household during the investigation of the relocation and settlement, and is provided with the compensation standard according to their structure of the house.

The town and village will help to reconstruct these affected enterprises and restore the production, and guide and help these enterprises to select the new location. All town- or village-level enterprises relocate this town or the village collective land. The private enterprise usually rents the village collective land and can get or rent the rural collective land from this location or other locations after the compensation fee, to build the factor or other enterprises again.

6.2. Relocation and Construction Schedule, Including

Construction of Various Relocation Infrastructures and Public

Facilities

The construction cycle of this project is 8 years, and the preliminary preparation and planning work of the project was initiated at the beginning of 2007. The land expropriation, demolition and relocation and civil engineering are kicked off on September 17, 2008. The land expropriation, demolition and relocation are basically completed on Decmber 31, 2013.

The concrete land expropriation, demolition and relocation established at various regions may vary depending on the concrete situation as a whole, and there is difference for the schedule of the demolition and relocation by the end of this external monitoring and investigation.

Resettlement methods for house demolition APs along LCR are decided by nature of impacts. For rural house demolition and relocation, compensation standards will be formulated according to promulgated policies and standards for this purpose, with 100% compensation being made at 50 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 house demolition or 50% to 60% of compensation being made in advance, and the rest being made after demolition and relocation. Compensation usually will be settled through bank transfer, where the resettlement authority will notify bank of transferring cash from special account to accounts of APs by following an AP name list. After APs receive compensation, they have two ways to rebuild housing: 1) for villages where dense demolition is made, the resettlement authority will acquire land for resettlement, level the land, make the land accessible to water, gas and road and allocate on FOC basis to APs to rebuild housing, or 2) the resettlement authority rebuild housing on its own and then allocate the new housing to APs. APs will receive assistance including allowance for house demolition and relocation and allowance for renting transitional housing, and those APs who timely demolish and relocate house in line with the general arrangement may receive extra incentives.

Usually the methods for house demolition and relocation may vary by place, and as of this phase of external monitoring investigation and evaluation, the progress in house demolition and relocation differs from place to place.

Gansu adopts both distributed and concentrated modes to resettle APs.

Shaanxi mainly uses distributed resettlement.

Sichuan combines distributed mode with concentrated mode to resettle APs. When effecting payment to compensate land acquisition and house demolition, in case that there is province-level official document that defines the compensation items, compensation will be paid as per standards defined in the document, and in case of absence of such document, compensation will be paid in accordance with the agreed conference summary by all stakeholders. The allocation and payment will follow such a procedure in which the county government needs to prepare a report on the scale of land acquisition and house demolition at first place, and this report will then be verified and signed by LYRC, executing parties, designing parties, supervising parties, real estate developers and the development and reform committee before the real estate developer receive the funds. Then the funds will be paid to APs by following such procedure: for compensation for house demolition and relocation, real estate developer, county finance bureau or county-level coordination team, village and household; for compensation for land acquisition, real estate developer, provincial administration of state land and resource, county administration of state land and resource, village and household, and compensation for woods, real estate developer, provincial administration of forestry, county administration of forestry, village and household.

Chongqing Municipality adopts a method that combines distributed with concentrated settlement.

51 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

Table 6-1 Statistical Table of Centralized Settlement Point for L C R Province County/D Centralized Settlement Point istrict Name Name Gansu Yuzhong 1. Gaojiaya Village of 61 45 Moved in Xiaguangying Town Yuzhong 2.Gaojiaya Village of 39 28 Moved in Xiaguangying Town, the new rural construction sites Yuzhong 3.Fenjiawang Village of 38 38 Moved in Laizibao Town Yuzhong 4.Fangjiaquan Village of Lai 32 30 Moved in zibao Town Yuzhong 5. Zhangjjiawang Village 15 12 Moved in of Jinya Town Yuzhong 6.luotuxiang Village of 80 70 Under Construction Jinya Town. Yuzhong 7. Qingshui Village of Qings 35 30 Under Construction huiye Town. Yuzhong 8. Wangjiawang Village of Qi 43 39 Under Construction ngshuiye Town. Yuzhong 9. Daying Village of Gaoya 38 37 Moved in Town. Yuzhong 10. Xinwayao Village of 25 23 Moved in Gaoya Town.

Weiyuan 1. Gujieping Village of 27 27 Moved in

52 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 Liangfeng Town. Weiyuan 2 Xuandao Village of Liangfeng 51 30 Under Construction Town. Weiyuan 3.Majiatan Village of Qiuyu Town. 70 70 Under Construction Weiyuan 4. Sunjiatang Village of Qiuyu 80 80 Under Construction Town. Weiyuan 5Maojiayao Village of Qiuyu 62 62 Under Construction Town. Minxian 1.Zhongbao Village of QinaxuTown. 144 126 Some Moved in Dangcha 1.HadapuTown 287 287 Under Construction ng Dangcha 2.Shawang Town 62 62 Under Construction ng Sichuan Wudu 1.Qingshuigou 443 443 Under Construction Wudu 2.Dongjiang 1 72 72 Under Construction Wudu 3.Dongjiang 2 115 115 To be Planned Guanyua 1.Wangjiagou 121 121 To be Planned n Guanyua 2.Qinjialian 40 40 To be Planned n Guanyua 3.West Street Wu Jiahao 256 256 Under Construction Cun . Cuangxi 1. Qunfeng Village ofLinjiang 22 22 Moved in Town. Chaotia 1. 8 8 To be Planned n Langzho 1.Jinyinguan 240 240 the main work has been

ng completed. Langzho 2.Langsheng 250 250 the main work has been

ng completed. Langzho 3. Railway Station A 240 240 the main work has been ng completed. Langzho 4. Railway Station B 252 252 the main work has been ng completed. Nanchon 1.Tianjingou Village of 22 22 Moved in g Mulao Town. Nanchon 2. Shuang Qiao Zi Village 28 28 Moved in g of Nan Long Town in Nanbu County Chongqing Beibei 1. TongxinCai Jia Gang Z 167 144 Moved in hen Jiang Shan holiday (inside red line) Beibei 2.TongxinCai Jia Gang Zhen 216 176 Moved in Jiang Shan holiday (outside red line

53 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

6.3. Measures of Reconstruction and Relocation Provided for

Weak Groups and Its Implementation, and Provision of

Corresponding Case Study

In addition to the compensation according to the policy, the affected residents are helped and concerned elaborately. For example, implement and provide the demolished household with the land for the construction of the new building freely, and provide the guide to purchase the building material and prepare for the new building base.

Special attention shall be paid to the patient, disable and woman household, to provide them with the labor help or necessary subsidy according to the actual situation. For the relocation of the new building, it is necessary to negotiate with the affected households, and provide the potential weak household with the priority, including the poor household, elderly household, disable household and woman household.

For the household to be helped, the village shall provide the necessary labor and material help, to ensure their new building is the same as existing building at least. For the woman dominant household and the disable household, the village shall provide them with the labor freely. In this way, it can save the labor cost of the affected residents in the compensation, to improve the building or use it in elsewhere.

In China, the women’s right is protected by Law of the People's Republic of China on the Protection of Rights and Interests of Women and Children. The women in the rural and city share the equal right as that of men, they are not discriminated, and their benefit is not neglected. The All China Women's Federation sets the affiliated institute in the towns and most of the administrative villages, which participate in several projects to help the poor girls out of school to return the school, provide the poor women with the help and training, and help them to get the small amount of loan. At the same time, they help to train the women cadres and improve the health level of women. As mentioned in Chapter 3, All China Women's Federation has abundant experiment to help women to develop themselves and create the production and activities. At the same time, it points out that All China Women's Federation will establish and implement the measure to restore the income for women and their families together with other proper institutes. The contractors for the railway construction will employ a lot of unskilled workers during the construction of the Lanzhou – Chongqing Railway. Of which, most of the employed labors are the local villagers, whose daily wage is about 100 – 140Yuan. The local villagers will be employed preferentially. It is an important opportunity to restore the short-term income of the affected residents.

54 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 The poverty-stricken people of the affected households will be employed preferentially during the construction of the Lanzhou – Chongqing Railway. The Ministry of Railways (MOR) will require various construction units employ more than 50% of unskilled workers from the local poverty-stricken people in the contract of the civil engineering construction, including women, who lose their main source of revenue during the construction of the project. The railway support offices of various counties and towns will implement this preferential policy jointly together with construction and project contract unit or their affiliated construction teams.

It will bring more employment opportunities for the affected residents along the railway line for the residence of the construction team and the increasing of the floating population during the railway construction. The affected residents may set the restaurants, hotels and small-sized department stores or cultivate more high-quality fruits and vegetables in the land, to provide the construction workers with the life convenience and boost their own revenue.

It will require 2808000 unskilled workers during the construction for four years. More than 1404000unskilled workers come from the area affected by the railway project, and it will reserve the work for the poverty-stricken households. It is necessary to pay the workers for 1060 million Yuan in the area affected by the railway project. The villages and households along the railway line may enjoy such employment opportunity, and lay the foundation for the employment, business development or improvement of the house and land in future.

It determines the potential weak households and groups. The following will describe the poverty alleviation measure for the affected groups, to enable them to benefit from the Lanzhou – Chongqing Railway Line and restore the livelihood sustainably. As mentioned above, it will allocate 2 million Yuan to provide the affected residents with the training and the small amount loan, help the weak groups, including the minorities, and ensure to provide the employment opportunity and develop the small-sized business during the railway construction if necessary.

6.4. Investigate Opinion and View of Relocation for Affected

Residents by Questionnaire or Interview

6.4.1 Gansu Province

1) Mr. Liu Zhongren, Vice GM of LYRC

LCR project is contracted to 16 executing parties and the execution is already in full progress. As

55 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 of end of December 2009, foundation is completed by 8%, bridges 7% and tunnels 10%, with 3 key bridges and 27 key tunnels coming into construction. Except for Chongqing Municipality where land acquisition and house demolition is accomplished by 15%, land acquisition and house demolition has been accomplished by 70% at all other places. Re-cultivation of temporarily acquired land has not started. A kick-off meeting was held on Sep 26th, 2008 to initiate the project, and construction of key sub-project—West Qinling Tunnel started in March 2009. Section between Xiaguan Ying and Guangyuan kicked off in March 2009, and section between Guangyuan and Chongqing in July 2009, with all executing and supervising sections starting operations in September. In 2009, main work for LCR project was on-site preparations prior to construction, obtainment of approvals for setting up discarded soil and dreg fields and construction of some foundation, tunnels and bridges.

2) Mr. Zhu Diping, Vice Director of Administration of State Land and Resource, Min County, Gansu Province (15825826319) Wang Shixian, Director of Development and Reform Committee (13993267219)

LCR spans 42.2km in Min County, passing five townships/towns as Meichuan, Chabu, Minyang, Shigou and Qinxu, where 5 tunnels and 8 super large bridges are to be built. Before the project kicks off, the senior officials of local county government have highly profiled importance of LCR and called for support of local residents to project construction. Huangqiang, vice county major in charge of infrastructure, led a team consisted of officials from administration of state land and resource, transportation authority, development and reform committee and China Mobile to consult with the project developers and assist working staff of China Railway 7th Bureau sent in advance to enter the construction site by providing facilities of communication and transportation. They also assisted land acquisition and house demolition for LCR by promoting significance and better-off opportunities brought about by LCR among local villagers village by village and township by township, with collaboration from local township officials. Some land under dispute is allowed to be used before acquisition, through on-site coordination by officials at township and county levels. The county CPC and government held several special meetings to discuss how to provide support and collaboration to LCR project, and formulated a package of policies and measures to support and serve LCR project. In result, working staff from China Railway 7th Bureau felt the strong attention and concrete support from the county CPC and government. LCR project construction proceeds smoothly in this area, with rapid entry into site, working staff settlement and construction commencement. Land acquisition and house demolition is almost completed, affecting 250 households in 4 townships/towns. In the meantime, resettlement is well implemented, new houses for resettled APs are under construction and various compensations have been paid. Cornered land after acquisition is pending for further solution. There is only one concentrated resettlement 56 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 spot—Zhongbao Village, Qinxu Township, in which reconstruction of dilapidated housing will be combined with newly-built housing and the rest will be resettled in distributed way.

3) Mr. Cuiyong, Vice Director of Weiyuan Administration of State Land and Resource, Gansu Province (13919686626)

LCR passes 5 townships/towns in Weiyuan County, including Qinqi, Beizai, Qingyuan, Qiuyu and Lianfeng, 19 villages and 1 state-owned forest farm (Lianfeng Forest Farm), with planned land occupation as 95 hectares. To smooth project execution, a dedicated LCR construction coordination leading team was formed by the county government, and a series of special meetings were held to provide collaboration to executing parties (China Railway 16th Bureau and China Railway 19th Bureau), concerning headquarters set-up, temporary land acquisition and project promotion. Particularly in the area of land acquisition and house demolition, all involved townships/towns and organizations have arranged dedicated officials and working staff to oversee land acquisition, house demolition and dispute resolution through the project. A notice was made public by the end of last year to prevent planting, seeding, repair and construction in rush from occurring. To acquire the 175.5 mu needed by the 9th Project Construction Department of China Railway 16th Bureau for working staff settlement and construction sites, even before the permanent land acquisition, the CPC and government of Qinqi Township convinced 7 households to relocate 21 tombs in the Red Line zone.

4) Mr. Huangqiang , Vice County Major, Zhang County, Gansu Province (13919719666)

With investment of approximant RMB320 million, LCR spans 36km in Zhang County, passing 3 townships/towns including Yi Huqiao, Da Chaotan and Jinzhong, and a C Class passenger and freight station will be built in Jiudian Village, Da Chaotan Township. Long before the start-up of the project, the county government carried out strenuous promotion of LCR, calling for local residents to provide support and assistance to LCR construction. After working staff of China Railway Bureaus entered into sites, the county government formed a dedicated office to provide support to LCR construction that would oversee land acquisition and house demolition for railway construction and design. Liu Changqing, vice county major led a team consisted of staff from administration of state land and resource, police and transpiration agency, as well as township/village level officials to push forward land acquisition and house demolition, by promoting the significance and development opportunities among local villagers village by village and township by township. In Tiegou village, Yi Huqiao Township, a service road had to pass cemetery of local villagers’ ancestors, and with the convincing of village officials, 16 households of villagers made decision to relocate these tombs to support the project. Up to date the project is being smoothly implemented in Dingxi City.

57 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 5) Mr. Yang Quanshe (0939-6121300), Director and Ms. Zhouping (13993993397), Vice Director of Dangchang County Administration of State Land and Resource, Gansu Province

In Dangchang County LCR extends by 91km and affects 12 townships including Awu, Ha Dapu, Lichuan, JIahe, Jiangtai, Chela, Xin Chengzi, Lin JIangpu, Gan Jiangtou, Guanting, Lianghe Kou and Shawan. House demolition concentrates in two towns as Shawan and Ha Dapu and one township as Liang Hekou. Since the commencement of the project, railway line within Dachang County has been subdivided into 49 work sections, and up to date construction of 14 tunnels, including Ha Dapu Tunnel, has already started, and some of the 13 large and medium bridges are also being under construction with smooth progress. 545 households or 90% of the planned 606 households and over 400 tombs have been resettled and relocated, including 100 households in Ha Dapu. More than 20 households in Shixia Village, Shawan Town and over 100 households in Shaba Village and Luchuan Village have been resettled in both distributed and concentrated modes to acquire land of 1,582.52 mu, of which 553.48 mu is used for living camp, machinery and equipment parking lot, materials piling field and service roads, 891.57 mu for dreg field, and 140.47 mu for permanent land acquisition within the Red Line.

6) Ji Xiangsheng, Vice Director of Wudu District Administration of State Land and Resource, Longnan City, Gansu Province (13993950738)

LCR invests RMB18 billion within Wudu District to build 128km line, 84% of which is in form of bridges and tunnels, including key project 28.2km-long West Qinling Tunnel, with 720 mu of land acquired, 12 mu of nurseries relocated, 31,200 economic trees expropriated, 24 tombs excavated and relocated and 28 households resettled.

7) Wang Xiangdong, Maoyao Village, Qiuyu Township, Weiyuan County (15101808554)

At age of 40 years and with high school education, Wang is a male peasant of Han nationality who temporarily performs non-farming work in slack season. He has a family consisted of 5 members, including mother, wife (elementary school education, Han nationality, performs non-farming work in slack season), elderly son (16 years old, junior middle school student) and younger son (elementary school student). This household makes annual income of RMB20, 000, including farming income RMB2, 000 and non-farming income RMB18, 000, and total annual living expenditure is RMB11, 200. 2.9 mu of irrigated land is acquired and 90m2 of house is demolished. This household owns one washing machine, one TV set and one motorcycle. The whole family has good health and up-medium living standards in the village, and they believe that land acquisition has seriously affected their living standards.

8) Wang Shunxiang, Maoyao Village, Qiuyu Township, Weiyuan County 58 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 Being 37 years old, handicapped and an elementary school graduate, Wang is a male peasant who has a family consisted of two members, including his illiterate mother at age of 71. They still have 3 mu of farming land after land acquisition. The demolished house is of earth-wood structure, covering 25m2, and the housing land occupies 150m2. Their living standards belong to medium-low end in the village.

9) Wang Yingcai, He Dapu Town, Dangchang County (13919553214)

At age of 42 years and with junior middle school education, Wang is a male peasant of Han nationality who continuously performs non-farming work outside of hometown. His family is consisted of 5 members, including wife (40 years old, Han nationality and peasant), two daughters (at the age of 20, the elderly is a high school graduate who performs non-farming work outside of hometown and at the age of 18, the younger is high school student) and a son (16 years old, a junior middle school student). No land is acquired, and house of 118m2 is demolished. They plant corn and wheat to realize annual income of RMB2, 000 to 3,000, and non-farming work to realize annual income of RMB8, 000 to 10,000. They have a TV set and their living standards belong to the low end in the village.

10) Li Zhaozhen, Shigou Village, Shigou Tonwship, Min County (0932-7959500)

At age of 40 years and with high school education, Li is a male peasant of Han nationality. His family has 4 members including wife (38 years old, Han nationality, junior middle school education, and peasant), daughter (16 years old, junior middle school student), son (7 years old, elementary school student) and himself. Demolished house consisted of brick building 140m2 and earth-wood building 100m2. They received compensation for house demolition RMB112, 400, and now have move into new housing with better living conditions.

11)Zhao Shejun, Guoping Village, Wudu District, Longnan City (13399399930)

At age of 38 years and with junior middle school education, Zhao is a male peasant of Han nationality, His family has 4 members, including wife (38 years old, junior middle school education and peasant), two sons (the elderly 13 years old, junior highs school student, and the younger 9 years old, elementary school student). Their living standards belong to up-medium end in the village. The demolished house includes brick building 300m2 and earth-wood building 50m2, and site for new housing is pending for selection.

12)Yuan Guangwu, Xin Yaopo, Gaoya Town, Yuzhong County

At age of 40 years and with junior middle school education, Yuan is a male peasant of Han nationality who continuously work outside of hometown. His family has 6 members, including father (63 years old), mother (62 years old), wife (36 years old, Han nationality, junior middle school education and continuously performs non-farming work outside of hometown), son (16

59 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 years old, junior middle school student) and daughter 6 years old) and himself. No land is acquired and earth-wood house of 110m2 is demolished. Their annual income is RMB16, 000, and expenditure RMB15, 000, with living standards at the lower-end in the village.

6.4.2 Shaanxi Province

1) Mr. Li Hanwen, Land Consolidation and Acquisition Office, Ningqiang County, Shaanxi Province

Under administration of Ningqiang County, there are 32 townships/towns (11 towns and 21 townships), 366 administrative villages and 2,459 villager teams. Of the total covered land of 3,246.80 km2 by the county, cultivated land is 440,000 mu, with irrigated land 76,000 mu and cultivated land per capita 1.48 mu. The county has total population of 339,600, which is mainly constituted by Han people, as well as 11 ethnic minority groups including Muslim, Manchurian, Zhuang and Bai, etc. The county seat town occupies 50km2 of land, of which planned area is 12km2 and constructed area 5.2km2, and in-town total population is 50,000.

2) Zhao Yongjun, Ningqiang Administration of State Land and Resource (131963807)

Compensation standards for land acquisition for LCR include RMB28, 000 for each mu of irrigated land, RMB22, 000 for each mu of dry-land, RMB16, 000 for each mu of sloping land and RMB4, 400 for each mu of forest land. APs will be resettled in combination of post-earthquake reconstruction project, and brought under the coverage of subsistence allowance system with which each AP can be paid monthly with subsistence allowance of RMB55.

6.4.3 Sichuan Province

1) Zhang Zerong, Director of Chaotian District Railway Construction Office, Guangyuan City (13568369598)

Chaotian section of LCR spans 32.13km from CK461+360 to CK493+490, which needs to acquire approximately 26.0 hectares of land, including cultivated land 19.18 hectare and other type of land 6.8266 hectares, and affects 12 villages in 4 townships/towns as Luo Quanyan Village of Pujia Township, Wenxi Village, Yuanxi Village, Sanlong Village of Dongxi He Township, Chenjia Village, Jinhua Village of Huashi Township, Huashi Village, Shaolou Village, Yuanxi Village of Yangmu Town, Wenbi Village, Jinding Village and Jinbi Village. There is existing dispute regarding restoration of roads and water supply that requires further resolution. Compensation will be made by following the process and standards defined in official documents of provincial government, and in case that such document is absent, compensation can be made according to the conference summary agreed by all stakeholders. To allocate compensation for land acquisition, the county government needs to submit a report on the scale of land acquisition and house demolition, and 60 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 allocation will be made after this report is confirmed and signed by LYRC, executing parties, designing parties, supervising parties and the administration of state land and resource. The funds and its usage will be strictly supervised by dedicated person, booking and account to avoid abuse of any type, and no entity or individual is allowed to withhold, seize or appropriate such funds for any reason. The procedure to effect payment is as following: for compensation for house demolition, county finance administration or coordination team, village and household; for compensation for land acquisition, provincial administration of state land and resource, village and household; and for compensation for woods, real estate developer, provincial forestry administration, village and household.

2) Director Wang, Nanchong City Railway Construction Office (13508093009)

With total investment of nearly RMB9.5 billion, LCR spans approximately 155km in Nanchong City, and 4 stations as North Nanchong, Nanchong, West Nanchong and South Nanchong are to be built. Of the affected 5 counties (districts), compensation amounting to RMB19.8 billion for land acquisition and house demolition has been made in advance. Modified scheme for line layout in urban Nanchong has been submitted for approval by MOR, tender invitation for Sichuan Section is already circulated, and executing parties are expected to enter into sites in July. Nanchong City is directly administrating Shunqing District, Gaoping District, , Nanbu County, , , Peng’an County and Yingshan County, and Langzhong City on behalf of the provincial government, altogether including 180 towns and 302 townships. As of end of 2008, total population of Nanchong has reached 7,494,938, including urban population 860,360 of which 3,922,774 are male (52.34% of total population) and 3572164 female (47.66% of total). Of such population, that of the three districts directly under administration of the city government is 1,924,945, with urban population 863,600. Nanbu County has the largest population of 1,290,399, and it is followed by Yilong, 1,101,273, Yingshan, 938,406, Langzhong, 877,349, Peng’an 710,741, Jialing, 697,112, Xichong, 651,825, Shunqing 639,555 and Gaoping, 588,278.

3) Wang Daode, Guang’an City Railway Construction Office (13908284889)

No.13 bid section of LCR, as being constructed by China Railway 1st Bureau, passes Nanchong, Guang’an and Huaying. Sub-section in Guang’an kicked off on Sep 17th, 2009, and spanned 18.3km to affect Guangmen, Zhaoshan, Chuanshi and Huahu, involving 21 villages and 76 villager teams, permanently acquiring land of 1,273.6 mu, of which 290.5 mu is used prior to acquisition, temporarily acquiring land of 518.6 mu and demolishing 91,019m2 of house. After house of Long zhijian, villager of 5th Team, Qincai Village was demolished, the village officials offered temporary residence to their family through coordination, and provided a simple shed to construction site of their new building and a private power cable to deliver electricity. Tang Wanhui, villager of 7th Team needs to find a new site in 5th Team nearby to build new house. Hualong Township plans to demolish 130 rural houses, and within 1month since the work starts, 126 house demolition 61 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 agreements have been signed. During house demolition, the compensation standards defined in Compensation implementing Methods for Land Acquisition and Resettlement for LCR in Guang’an City issued by Guang’an City government and the requirements for information disclosure and publicization have been faithfully enforced.

4) Mr. Li, Vice County Major, Wusheng County (13608273999)

During land acquisition and house demolition for execution of LCR Project Wusheng section, Urgent Notice of CPC Sichuan and Sichuan Province People’s Government on Improving Compensation for Land Acquisition and House Demolition (CPC Sichuan Document No.12, 2005), Notice on Transmitting Opinions of Provincial Administration of State Land and Resource on Adjusting Compensation Standards for Land Acquisition and House Demolition by Office of Sichuan Province People’s Government (Document No. 73, 2008) and Notice on Furthering Social Security Coverage to Peasants Whose Land is Acquired by Office of Sichuan Province People’s Government (Document No.15, 2008) have been faithfully enforced. For land acquired for LCR, social security will be extended to cover APs at first, and then land be acquired, with social security being provided in proportion to actually acquired land. County finance bureau will open a dedicated account to keep social security funds for peasants whose land is acquired, and no less than 70% of land acquisition compensation, all allowance for resettlement, government’s withholdings from land transferring fees and other funds devoted to social security of the peasants whose land is acquired will be paid into this account and used for this purpose only. Those peasants who have land acquired and wish to be employed and trained will be brought under urban employment management and registered as unemployed. Re-employment Preferential Certificates will be given to those who are eligible to enjoy preferential treatments in employment introduction, employment training, tax deduction and exemption and small loans, essentially implementing policies on promoting employment and providing preferential treatments in re-employment.

The county government aligns the reality of these peasants to employment requirements, and organizes polytechnic school, vocational school, social societies and professional training institutions to strengthen training for peasants whose land is acquired. In result, the ability of such peasants to seek employment and adapt to increasingly competitive labor markets has been substantially improved so that they can better grip employment opportunities.

5) Li Faxi, 5th Team of Haokou Village, Yuanxi Town, Changxi County (0839-3600273)

Being 50 years old and with junior middle school education, Li is a peasant of Han nationality who performs non-farming work outside of hometown. The family has four members including wife (47 years old, Han nationality, junior middle school education and performs non-farming work 62 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 outside of hometown), elderly daughter (high school education, performs non-farming work outside of hometown), son (18 years old, high school student) and himself. 4.7 mu is temporarily acquired by LCR, and a brick house of 150m2 and a brick-wood house of 90m2 are demolished. They plant corn and rice to annually make income of RMB3, 000 to 4,000, and non-farming work can make income of RMB30, 000 to 40,000. They have a TV set, with living standards belonging to the upper-medium end in the village. Yuanxi Town covers land of 72.8km2 and has population of 16,000, administrating 17 village committees including Gulou, Longhui, Gongling, Yandeng, Xuetang, Longyan, Xinmiao, Qibao, Sancha, Minzhong, Fengshan, Si Fangshan, Yuanxi, Yakou, Haokou, Shipan and Qingming. Main agricultural produce includes rice, wheat, corn and rape seeds.

6) Li Hanfu, Haokou Village, Yuanxi Town, Changxi County, Guangyuan (15983940449)

Being 40 years old and with junior middle school education, Li is a peasant of Han nationality who performs non-farming work outside of hometown. His family has 5 members, including father (67 years old, illiterate), mother (61 years old, illiterate), wife (40 years hold, Han nationality, elementary school education and peasant), son (high school student) and himself. 3 mu of land is temporarily acquired, and a brick house of 400m2 demolished. They plant corn and rice to annually make income of RMB3, 000 to 4,000, and non-farming work can annually make income of RMB8, 000 to 12,000. They have a TV set and their living standards belong to medium-low end in the village.

7) Li Fangjun, Haokou Village, Yuanxi Town, Changxi County, Guangyuan (13881249734)

Being 53 years old and with elementary school education, Li is a peasant of Han nationality. Besides himself, his family has 3 members, including wife (54 years old, Han nationality, illiterate and peasant), sun (29 years old, junior middle school education and performs non-farming work outside of hometown), and daughter (27 years old, junior middle school education and performs non-farming work outside of hometown). 4 mu of land is temporarily acquired, and a brick house of 380m2 is demolished. They plant corn and rice and farm fish to make annual income of RMB5, 000 to 7,000, and they perform non-farming work to make annual income of RMB18, 000 to 20,000, with annual expenditure RMB15, 000. They have a TV set, and their living standards belong to medium end in the village.

8) Zhao Julin, 4th Team of Qunfeng Village, Miaoya Town (15181370251)

Being 53 years old and with elementary school education, Zhao is a peasant of Han nationality

63 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 who performs non-farming work outside of hometown. Besides himself, his family has 4 members including wife (55 years old, Han nationality, illiterate and peasant), son-in-law (30 years old, junior middle school education and performs non-farming work outside of hometown), daughter (28 years old, vocational school education and performs non-farming work outside of hometown) and grandson (7 years old, elementary school student). 1.2 mu of land is acquired permanently and 0.7 mu temporarily, as well as a brick house of 360m2 is demolished. They plant corn and rice to make annual income of RMB2, 000 to 3,000, and non-farming work can annually contribute RMB20, 000 to 30,000, with annual expenditure as RMB14, 000. They have a TV set and living standards belong to medium end in the village. This town administrates 5 administrative villages, 42 villager teams, and 13,145 villagers from 3,558 households, including 7,414 laborers. The town covers land of 35.9km2, with irrigated land of 12,420 mu suitable for growing a variety of crops and economic plants. The town’s economy relies on grain production, silk worm raising, hog raising and labor services, with annual total industrial and agricultural output as RMB65 million and net income per capita RMB2,800.

9) Xie Yuanming, 3rd Team of Qunfeng Village, Miaoya Town (0839-5218012)

Being 54 years old and with elementary school education, Xie is a peasant of Han nationality who performs non-farming work outside of hometown. His family has five members, including wife (55 years old, Han nationality, elementary school education and performs non-farming work outside of hometown), son (28 years old, junior middle school education and performs non-farming work outside of hometown), daughter (24 years old, high school education and performs non-farming work outside of hometown) and grandson (2 years old). No land is acquired, and a brick house of 220m2 is demolished, with rural housing land 180m2. They plant corn and rice to make annual income of RMB2, 000 to 3,000, and non-farming work can annually contribute RMB20, 000 to 30,000, with annual expenditure of RMB12, 000. They have a TV set and their living standards belong to medium end in the village.

10) Zhang Defu, 4th Team of Qunfeng Village, Miaoya Town (0839-5218111)

Zhang is a Han nationality peasant at age of 67, with elementary school education. His family has 5 members, including wife (67 years old, Han nationality, elementary school education and housekeeper), son (37 years old, college education and works outside of hometown), daughter-in-law (college education and works outside of hometown), and granddaughter (high

64 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 school student). No land is acquired, and a brick house of 100m2 is demolished, with rural housing land of 320m2. They plant corn and rice to make annual income of RMB2, 000 to 2,500, and non-farming work can contribute another RMB20, 000 to 25,000, with annual expenditure of RMB28, 000. They have a TV set, and their living standards belong to medium-end in the village.

6.4.4 Chongqing Municipality

1） Lu Zhonghe, Secretary of Land Acquisition and House Demolition Team, Railway Construction Office of Chongqing Municipality (13908348202)

.In terms of organization, a leading team to provide support to LCR construction is formed with Vice Major Tong Xiaoping as team leader, and administration of state land and resource will implement land acquisition and house demolition. Compensation standards for land acquisition and house demolition will uniformly follow Notice of Chongqing Municipality People’s Government on Adjusting Policies on Compensation for Land Acquisition and Resettlement (Chongqing Government Document No. 45, 2008), which defines that a single compensation standard will be implemented for construction of road, railway and reservoir, and RMB20,000 will be paid by municipal government for each mu of acquired land in urban Chongqing, and RMB15,000 for each mu of acquired land outside of urban Chongqing. The funds will be allocated by following such process: Chonqing municipal department of finance, land consolidation and acquisition office under municipal administration of state land and resource, administration of state land and resource at county/district level, affected township/town and APs. 80% of compensation will be paid into social security funds. China Everbright Bank Chongqing Branch has extended loan of RMB500 million to fill the shorted compensation of 6 land acquisition and house demolition projects.

2） Mr. Huangjin, Land and Housing Administration, Chongqing Municipality (023-63651379)

LCR spans approximately 91km in Chonqing, and land acquisition and house demolition affects 4 districts as Hechuan, Beibei, Sha Pingba and North New District. To smooth project execution, district project assistance offices and affected towns/streets/agencies have paid due attention to the work of land acquisition, house demolition and compensation, and the project’s needs for land has been essentially satisfied, except for some lingering issues. It is important to strengthen

65 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 organization and leadership, clearly define functionality and responsibility, strictly enforce working disciplines, accept public monitoring, vigorously resolve disputes and maintain social stability.

6.5. Demolition and Relocation of Building

The residents affected by the land expropriation, demolition and relocation are settled properly, the related work to restore their production and life are implemented effectively, and most of the affected residents are satisfied with the compensation and settlement during the settlement and compensation for the land expropriation, demolition and relocation of the Lanzhou – Chongqing Railway Project.

The reconstruction work is carried out orderly, and the self-constructed houses settled locally are relocated, some of the centralized settlement points are completed, some of the houses are sealed roof, and some of the houses are still at the planning stage.

66 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7 7. Restoration of Infrastructures and Public Facilities

7.1. Restoration of Infrastructures and Public Facilities Affected

by Railway Project

The Lanzhou – Chongqing Railway Project will have an effect on all types of the infrastructures and auxiliary projects, including the communication cable, power transmission line, road, irrigation facilities, drain system and water and sewer line. When the infrastructure is affected, the project construction unit will prevent and alleviate the effect on facilities, or repair facilities, or compensate owners of infrastructures or some service providers or agencies of infrastructures appropriately. For the currency compensation, the operation principle shall be established over a certain principle that it will restore the original function, scale and standard of facilities. In a word, it is necessary to restore the affected facilities and services as soon as possible and provide the temporary facilities before the demolition or relocation, to prevent from having any serious negative effect on the service quality of the local residents.

A part of counties/regions provide the affected situation of infrastructures during this external monitoring evaluation as shown in Table 7-1.

67 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

Table 7-1 Statistics of Affected Infrastructures for LCR

Item Measurement Number Wire Pole Unit/m² 52 10KV Wire Pole 197 380V Wire Pole 171 380V Wooden Wire Pole 77 Transformer 16 Uncovered Channel m² 20,430 Bridge 8 Road m² 71,560 Rural Road m² 52,960 Tomb 1530 Underground Structure m 0 Gas Pipe m 42 Water Supply Pipe m 37,650 Drainage Pipe m 534 Communication Cable m 23,063 Power Cable m 9,050 Heat Supply Pipe m 4,441 Flower Bed m 2,505 Tap Water Pipe m 36,355 Vegetable Shed m² 1,760.36 Motor-pumped Well 205 Bush 3,966

68 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No7

7.2. Residual Problem and Measure for Owners

The infrastructures affected by this project will be restored by taking three measures as follows:

It is restored by the railway construction unit directly during the construction, such as the rural road and aqueduct. The railway department will provide the capital to invite the professional team for the modification and transfer, such as the communication facilities, power facilities and broadcast and television. A part of infrastructures and public facilities will be paid with the compensation fee for the affected parties, such as the drinking water tower and lighting line and reconstructed by the affected parties.

For the construction cuts off the water source of a part of cultivated lands, some place has no ability to add water resource facilities to restore the irrigation, and the local government and villagers put forward the requirement to modify and plant the dry land, and require the compensation fee from the construction party. The local government and villagers require the construction party to expropriate the edge land without the water source and access.

69 CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7

8. Execution of Relocation Budget and Source of Fund

8.1. Payment of Relocation Fee and Actual Fund Flow

The source of compensation fee for the land expropriation, demolition and relocation: MOR, Gansu Province , Shanxi Province , Sichuan Province and Chongqing Municipality.

The payment procedure of the compensation fee for the land expropriation, demolition and relocation is that the provincial (municipality) development and reform commission and the provincial (municipality) department of finance pays it to the provincial department of land resources and the unified land expropriation office of the housing administration bureau, pays it to the municipal (state) department of land resources, and pays it to the county (district) department of land resources or the housing administration bureau, and then pays it to the affected towns. Finally, the town will pay it to the affected villages and teams (compensation fee for land expropriation) and the affected households (compensation fee for demolition and relocation) directly. Various materials establish the management archive of the compensation agreement. The payment procedure of the demolition and relocation: Municipal Finance Office – County Finance Bureau or County Coordination Group – Village – Household. The payment procedure of the land fee: Municipal Development and Reform Commission – Municipal Department of Land Resource – County Department of Land Resource - Village – Household. The payment procedure of the forest fee: Municipal Development and Reform Commission – Province Forest Bureau – County Forest Bureau – Village – Household.

8.2. Payment Schedule of Relocation Fund

5172.34 million Yuan of the compensation fee for the land expropriation, demolition and relocation has been paid directly for the construction of the Lanzhou – Chongqing Railway by the end of May 28, 2013 since the initial payment at the end of September, 2008.

- 70 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 8.3. Source and Ready Situation of Fund for Relocation

As land acquisition and house demolition for LCR progresses and funds for compensation are being allocated, in total direct payment of RMB5172.35 million has been made for land acquisition and house demolition, of which Gansu Province RMB1837.55 million, Shaanxi Province RMB7.386million, Sichuan Province RMB2954.452 million and Chongqing Municipality RMB372.959million. Please refer to Table 8-1 for details.

Table 8-1 Paid Compensation for Land Acquisition and House Demolition for LCR

Accumulatively Paid No. District/County Item (RMB 10 thousand Yuan) Compensation for 1 Gansu Land Acquisition and House Demolition 183754.9 Compensation for 2 Shaanxi Land Acquisition and House Demolition 738.6 Compensation for 3 Sichuan Land Acquisition and House Demolition 295445.2 Compensation for 4 Chongqing Municipality Land Acquisition and House Demolitio 37295.9

5 Total 517234.6

- 71 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 8.4. Comparison and Analysis of Actual Relocation Fee and Budget

in Relocation Plan and Analysis of Change Cause

The general budget in the relocation plan is 2056.72 million Yuan, and5172.346million Yuan is paid for the direct compensation of the land expropriation, demolition and relocation for the Lanzhou – Chongqing Railway by the end of May 28, 2013.The actual compensation for the land expropriation, demolition and relocation is more than the general budget in the relocation plan. The actual compensation standard for the land expropriation, demolition and relocation is higher than the standard in original relocation plan.

- 72 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 9. Public Participation and Information Publication

9.1. Information Publication Record of Project

It propagates and publicizes the information at the initial preparation stage of the project. It will propagate the construction objective and meaning of this project, the construction time and address of this project, and the concrete regulation of the national land expropriation, demolition and relocation in various provincial and county levels of governments to the publics broadly by various medias, such as the broadcast, TV, newspaper and journal. The purpose of the publicity is to enable local publics to understand related consideration of the land expropriation, demolition and relocation in this project.

It is necessary to publicize the notification of the unified land expropriation, demolition and relocation to the affected residents before the demolition and relocation. The objective is to enable the affected residents to understand related consideration of the Land Expropriation, Demolition and Relocation, the scope, compensation and settlement policy of the Land Expropriation, Demolition and Relocation, and the regulation on freezing of the household registration and doesn’t cultivate any vegetable after July, 2007 ( put forward the compensation requirement).

The land expropriation, demolition and relocation office of the local government issues the first batch of the manual on the demolition and settlement information of the affected residents and villages inOctober, 2007.Issue the updated relocation and settlement information manual again, including the detailed description of the Lanzhou – Chongqing Railway project, and its scope, procedure, principle, unit price and compensation standard, as well as the complaint mechanism related to the Land Expropriation, Demolition and Relocation of this project.

The mass conference of the relocation and settlement is another main type of the information release. The role of this conference is to enable the participant to understand the implementation, compensation policy and standard, housing reconstruction and personnel settlement policy preferentially and collect the feedback of the participant.

- 73 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 Table 9-1: Public Consultation and Participation Plan and Disclosure Record Timing (Date/ Feedback/ Issues/ Activity Task No of People Agencies Remarks Period) Concerns Raised Socioeconomic situation, resettlement framework, Before July 2006 when field data collection began, Local government demolition policy, channels 510 local government officials and potential users Stakeholder officials, village Mapping of the project area Completed 510 for public participation, were involved in stakeholder meetings. Identification leaders, village attitudes towards LCR, also Does not include subsequent passenger and driver representatives planning for RP surveys, household surveys, and industry surveys. preparation Representatives of Options for facility Of the 65 surveyed, only 3 (one school and two affected enterprises, restoration, implications workshops) indicated they may not be able to rebuild 65 government offices, Consultative Discuss potential impacts of and plans for affected locally. When the alignment is fixed, plans will be schools and health Meetings with AP the project, options for workers made to restore the businesses and services. Mar-Apr 2007 facilities and local relocation and restoration, Socio-economic government during and collect relevant information, income and Highlighted the reliance of rural households on Scoping Phase information 355 Affected village leaders housing restoration options remittances and wage labor and the increasing trend as well as perception of the to cash crops. project Initial surveys by SSDI and FSDI during Jul-Aug 06 Collect socio-economic info FSDI/SSDI and PPTA Socio-economic info on AP indicated broad AP support for the Project, with some Socio-Economic as well as AP’s perception of Mar-Apr 2007 6,129 Consultant collected as well as AP’s perception concerns as to sufficiency of compensation rates and Survey the project on a sample data on the project timeliness of disbursement. These issues were also population of AP evident in further surveys in April 2007. Full Disclosure of Distribute Draft RP in local All affected Oct 2007 LARG and RCSOs the Draft RP to AP language to the AP villages People are already aware of the planned development Distribution of Resettlement of the LCR, and their eligibility to entitlement under Project Information Information Booklets to Oct 2007 All APs EA and local authorities the Land Law, however this RIB will detail the Dissemination affected persons (AP) schedule, rates and other information specific for APs. Web Disclosure of Draft RP posted on ADB and Oct 2007 ADB the Draft RP EA website Village meetings along the Explain to people the process of DMS, land FSDI/SSDI, local Notification of route in advance of DMS to acquisition approval, the need to develop local plans May 2008 All APs DRC/RCSO and DMS explain activities and for housing and income restoration. Identify any Villagers resettlement planning specific major issues for resettlement. Consultative Discuss entitlements, Meetings on compensation rates, income Village level meetings During and immediately following DMS, villagers, June-July Resettlement restoration, site selection, facilitated by Village village leaders and County RCSOs develop local 2008 Mitigation grievance redress and local RCSOs plans for housing and income restoration Measures mechanisms

- 74 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 Timing (Date/ Feedback/ Issues/ Activity Task No of People Agencies Remarks Period) Concerns Raised People are already aware of the planned development Official notification in each of the LCR, and their eligibility to entitlement under Notification of village and township of All affected Aug 2008 Local RCSOs the Land Law, however this RIB will detail the resettlement plans affects and plans for housing villages schedule, rates and other information specific for and income restoration APs. Public hearings at village Public hearings on All affected Address and respond to AP and village concerns in and township level on the Aug 2008 Local RCSOs proposed plans villages plans, and modify as necessary proposed plans Full Disclosure of Chinese language version of the approved RP will be Distribute Updated RP in All affected the Updated RP to Sept 2008 LARG and RCSOs made available in every affected village, and to local language to the AP villages AP RCSOs at local level(township and county) Web Disclosure of Updated RP posted on ADB Oct 2008 ADB the Updated RP and EA website RCSO and Village to Villages commence housing site with To commence in advance of agreements and Commencement of developments, particularly affected payments so that sites are ready for housing Housing Site Oct 2008 Local RCSOs, Village for clustered housing sites, housing or construction when compensation is disbursed. May Preparation including infrastructure and other generate some local short term employment. services. structures Itemize and agree compensation and other Final measurement entitlements and housing Oct 2008 All AP Local RCSO, AP and agreements and income restoration plan for the household Training in support for Local government non-farm based occupations organizations and other Commence Income and skills, and for trainers as identified in All eligible Restoration agricultural intensification. Feb 2009 the Village AP Training Also by RCSOs on Resettlement and management and use of Income Restoration compensation funds Plans All APs/ Payment of all compensation AP compensation Village monies to APs and Village Oct 2008 Local RCSOs disbursement Committee Committees, as appropriate s Replacement of housing All AP with Housing March 2009 to before civil works can affected reconstruction April 2011 commence structures Village to coordinate community support for All villages Village support for vulnerable APS in the Oct 2008 to with Village Vulnerable AP reconstruction or their April 2011 vulnerable housing, physical relocation AP and readjustment of any

- 75 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 Timing (Date/ Feedback/ Issues/ Activity Task No of People Agencies Remarks Period) Concerns Raised productive lands. 1) ADB, LYRC, LARG Resettlement for LARG June 2008 1) 5 2) LARG and local Training for local officials July 2008 2) 220 government staff Training for LCR Training provided by Starting To be temporary workers contractors Sep. 2008 determined

- 76 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7

9.2. Public Record of land Expropriation, Demolition and

Relocation Policy

The public participation and information publicity of this project is represented as follows respectively: ① public participation during the preparation of project, ② public participation during the implementation of project. The standard to test the advantages/disadvantage of the public participation is ① the understanding degree of various land expropriation, demolition and relocation policies for the public. It demonstrates the degree of participation is high if the public timely understands various policies and in detail. ② The right to speak of the public on various land expropriation, demolition and relocation policies. The more right to comment on various policies for the public, the more right they issue their opinion, and it demonstrates the degree of participation is higher. The content and style that the public participates is mainly reflected in the following aspects, ① Negotiation, ② Announcement (issue the policies by the media and notice), ③ Participation in real loss investigation and social and economic investigation, ④ Evaluation of compensation standard, ⑤ Selection of relocation, ⑥ Self-construction of new houses, ⑦ Selection of employment mode, ⑧ Opinion on use of compensation fee for land expropriation.

There are powerful autonomous conscientiousness and individual conscientiousness for the public related to the Lanzhou – Chongqing Railway Project in Chongqing Municipality and Hubei province, and they are brave in and good at protecting and striving for their own benefit. Hence, there is a high degree of participation for the public in this project. The monitoring group understands that Chongqing Municipality and Hubei province issue the meaning and role, the quantity and time of the land expropriation, demolition and relocation and the compensation standard of this railway project by the broadcast, TV and newspapers before the land expropriation, demolition and relocation after the on-site survey. For the affected villages and groups, various compensation standard and payment are pasted in the village for more than two times in the notice way.

9.3. Participation Mechanism and Record of Affected Residents in

Implementation of Relocation, Monitoring and Evaluation

The external monitoring agency of the demolition and relocation for the Lanzhou – Chongqing Railway Project will submit the external monitoring report of the demolition and relocation for the Lanzhou – Chongqing Railway Project to Asian Development Bank (hereafter referred to as ADB)

- 77 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 every half an hour according to the loan agreement between Ministry of Railways and ADB. As the owner of this project, the Lanzhou – Chongqing Railway Co., Ltd entrusts Beijing Zhongzi Oversea Consultation Co., Ltd to undertake the independent external monitoring and evaluation work formally after the Lanzhou – Chongqing Railway Project is successfully evaluated by ADB. And then Beijing Zhongzi Oversea Consultation Co., Ltd founds the monitoring and evaluation group, establishes the operating program of the monitoring and evaluation work, works out the questionnaire and the annual working program, implements the external investigation for four times, analyzes and summarizes the material and feeds back the information, and completes the basic investigation and the first and second monitoring report. This is the third semi-annual report (the first half year of 2012).

9.4. Public Participation and Information Publication of Evaluation

The public concerns with three issues mainly, the one is the allocation scheme and usage of the compensation fee, the second is the settlement scheme of the labor force and the third is the residential land. The most concern for the public is the use of the compensation fee. The consistent method for three provinces is that it will hold the villager conference to determine the allocation and usage scheme of the compensation fee after the compensation fee for the land expropriation is paid to the grass-root village and group. The village committee shall be monitored by the villager supervision group during the use of the compensation fee, and the supervision group is formed by the village election. The finance department shall paste the use of the compensation fee in the village publicly and be audited by each villager. Above measures can ensure the allocation and use of the compensation fee represents the willing for most of villagers basically. The monitoring group doesn’t find any misuse of the compensation fee for the land expropriation, demolition and relocation basically, and doesn’t listen to the complaint in terms of the use for the compensation fee.

The relocated residents also concern with the settlement scheme of the labor force. The settlement of the secondary industry and the tertiary industry, or the individual job or the internal land adjustment is related to the vital interest of the relocated residents. The monitoring group understands that the relocated residents don’t pay attention to the internal land adjustment, but select the secondary industry and the tertiary industry, or the individual job. The relocated residents in other rural area along the railway line still pay attention to the internal land adjustment, which reflects their living state that still relies on the land. In general, various provinces comply with the voluntary principle in terms of the settlement of the surplus labor force and respect the willing of the parties fully, so that the parties select the optimal one from several optional schemes. The - 78 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 monitoring group is basically satisfied with the understood situation locally.

The formers pay attention to the selection of the residential land. Both the formers on the edge of the city and those along the railway line lay more importance to the selection of the residential land. On the one hand, it is related to their life style. For example, they are willing to live with the family members and would like to live close to the contracted land. On the other hand, it is related to the living environment and quality. For example, they require perfect infrastructure around the residential land, such as the water, electricity and road and the new residential land is close to the road and market as much as possible. For the relocated residents pay attention to the selection of the residential land, while the available residential land is limited and there is the mental comparison for formers, the arrangement of the residential land usually causes the conflict among the relocated residents. The Zhejiang - Jiangxi Railway Project addresses this problem successfully. For the relocated residents on the edge of the city, the government finds out a better residential land in the city and plan, build and solve the issue of the infrastructure uniformly to meet their requirement together with the characteristics of the less land. For the relocated residents along the railway line, the government complies with the principle to plan the new village for formers as much as possible, and build and settle them uniformly, to prevent the possible conflict and meet the requirement to build the new socialist countryside. The monitoring group thinks this project addresses the problem of the residential land successfully and is sung high praise by the relocated residents.

If the relocated residents suffer from any problem in terms of the production and life or they doubt and are not satisfied with the compensation and settlement during the land expropriation, demolition and relocation, as well as settlement, they can reflect and complain in the following five ways, such as ① the unit of owners, ② independent external monitoring agencies, ③ various levels of the command centers or coordination groups, ④ related petition department of government and ⑤ law suit.

(1) Reflect the situation to the unit of owners. The unit of owners is the borrower and the final user of the land, and they shall be responsible for addressing various problems caused for the land expropriation, demolition and relocation, as well as settlement. The monitoring group understands that the Lanzhou – Chongqing Railway Co., Ltd as the owner is set with the Land Expropriation, Demolition and Relocation department on the site, and the Land Expropriation, Demolition and Relocation department is equipped with three or more professional staffs, whose name and contact phone are notified to various affected villages and groups. The staffs of the Land Expropriation, Demolition and Relocation department tell the monitoring group that they transact a large number of the visitors and complaints and address a lot of the problems put forward by the

- 79 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 public in more than one year. Most of the addressed problems are the roads, bridges and water resource facilities. The leaders of some towns tell us that they are accustomed to turn to the railway department for any question, for the problems shall be addressed by the railway department even through they turn to the local government. Hence, they turn to the final person responsible to address the problems directly, so as to reduce the procedure.

(2) Reflect it to the independent external monitoring agencies. The independent external monitoring agencies will keep track of, investigate and understand the affected villages, groups and individuals on the construction site every half an year during the implementation of the project. For the special status of the independent external monitoring agencies, the leaders and relocated residents of the grass-root government would like to trust in the independent external monitoring agencies and reflect the problem to them. The monitoring group frequently suffers from such situation during the household interview, feedbacks the collected dissatisfaction and complaint to the railway command center and the local government, and takes it as the key point to keep track of and check for the next monitoring and evaluation.

(3) Reflect it to various levels of command centers or coordination groups. Various levels of command centers or coordination groups represent the local government to undertake the land expropriation, demolition and relocation, as well as the settlement of the project, and they shall be responsible for addressing various problems caused from the land expropriation, demolition and relocation, as well as the settlement. The monitoring group understands that various levels of command centers or coordination groups establish the dedicated work group to be responsible for the Lanzhou – Chongqing Railway Project by the on-site survey, and their complaint phone number is issued to the public, and the relocated residents take them as the local magistrate and the representative of their benefit. Hence, the relocated residents will turn to the command centers or coordination groups usually when they suffer from the problem. The member of command centers or coordination groups will reflect it to the monitoring group, and feedback the collected opinion of the public to the railway department at each railway and local joint conference, as well as urge the railway department to address the problem as soon as possible. If it is of the command centers or coordination groups, they will receive these complaints directly, and try their best to provide the relocated residents with a satisfied response. If it reflects the working problem of the grass-root government, they will dispatch dedicated personnel to check the work of the grass-root government and implement these opinions. The monitoring group feels that various command centers or coordination groups are responsible for the relocation, and they pay attention to the problem reflected by the relocated residents and process such problem in time.

(4) Various petition department and law department is also an effective complaint channel. - 80 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 However, there is not any case that the dispute is reflected to the higher level of the petition department or addressed by the law suit to date. It also reflects that the project is smooth and sound from one perspective.

- 81 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 10. Implementation of Relocation and Management

Agencies

10.1. Arrangement of Work Content and Key Responsibility for

Main Implementation and Management Agencies of Relocation

For the responsible agencies of the land expropriation, demolition and relocation, as well as settlement for the Lanzhou – Chongqing Railway Project, the foreign capital project management center of MOR for the high level coordination agency of this project is set with one dedicated person responsible for the land expropriation, demolition and relocation, various provinces/cities are set with the general coordination agencies, the Lanzhou – Chongqing Railway Co., Ltd is set with land expropriation, demolition and relocation office, and the full-time functional departments of various counties (districts) will undertake the concrete work on the land expropriation, demolition and relocation under the unified arrangement of the provincial coordination agencies. The chief leaders in various regions and counties are responsible for changing the leading group of the railway construction support and its office in the Chongqing Municipality into the leading group of the Chongqing railway construction and the office of the Chongqing railway construction respectively.

(1) The work content and key responsibility for the leading group office of Gansu, Sichuan and Chongqing railway construction is as follows:

Coordinate with and promote the prior work of the railway project in the whole city.

Research on and coordinate with the important policies on the land expropriation, demolition and relocation for the railway construction in the whole city.

Coordinate with others to address the significant problem among the local government, related unit and railway construction unit related to the railway construction along the railway line.

Establish and implement the working responsibility system of the railway construction, convey the annual program objectives to related county (autonomous county), city-level department and related unit, and coordinate with and urge to implement the working responsibility.

Overall command and periodically reflect the progress of the railway construction, and propose the significant problem, policy and measure to be researched and coordinated to the leading group.

Coordinate with related problem caused from the land expropriation, demolition and relocation and construction of the railway construction, and urge and coordinate with the local government and enterprise along the railway line for the railway construction. - 82 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 Hold the publicity work of the railway construction, and coordinate with and guide the leading group of the railway construction in the county (autonomous county).

To improve the working strength of the railway construction leading group in Chongqing Municipality, we add the branch leader of the municipal housing administration bureau and the municipal finance office as the vice leader of the leading group.

The associate director of the municipal development and reform commission is responsible for coordinating with the railway planning, the prior work of the railway project and the capital balance and holding the office working of the leading group.

The deputy director of the municipal housing administration bureau is responsible for coordinating with the land planning, procedure and approval of land use and land expropriation, demolition and relocation for the railway project.

The deputy director of the municipal finance office is responsible for raising the capital in cash for the railway construction project and the capital for the land expropriation, demolition and relocation.

The publicity department of the municipal committee, the Chongqing garrison command, municipal development and reform commission, municipal finance office, municipal economy and information committee, municipal bureau of public security, municipal housing administration bureau, city and countryside construction commission, urban planning bureau, municipal administration committee, municipal communications committee, municipal agricultural affairs committee, municipal bureau of water resources, municipal bureau of human resources and social security, municipal cultural and broadcast bureau, municipal environmental protection bureau, municipal tax bureau, municipal forest bureau, municipal bureau of parks, municipal earthquake bureau, Municipal Communication Investment Group Co., Ltd, municipal real state group, Chongqing Maritime Bureau, Changjiang Waterway BUREAU, Municipal Electric Power Company, Railway Bureau and China Railway Group No.2 Branch.

They are mainly responsible for the collection and feedback of the railway construction information, the examination and supervision of the objective and responsibility, news communication, archive management and liaison and reception. Furthermore, they are responsible for analyzing the significant problem in the railway construction and researching on and putting forward the policy, measure and suggestion.

They are mainly responsible for coordinating with and promoting the railway planning, project survey, design and approval, and coordinating with and urging related county (autonomous county) and city-level department along the railway for the project planning, and the review and demonstration of the land use, evaluation of environment protection, water resource protection and navigation, as well as the transaction of related procedure. They are responsible for the

- 83 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 pipeline change and transfer of the railway construction and the coordination of the significant problem.

They are mainly responsible for guiding and coordinating with counties (autonomous counties) and related units along the railway line for the land planning, approval of land use procedure, land expropriation, demolition and relocation, compensation and settlement of the railway project, and urging counties (autonomous counties) for the land expropriation, demolition and relocation.

(2) The work content and key responsibility for the leading group office of Gansu, Sichuan and Chongqing railway construction in various counties is as follows:

The bureau of land management is responsible for implementing the land expropriation, demolition and relocation as well as compensation and settlement and transferring the basic pension insurance for the agricultural to non-agricultural personnel, and assisting in related departments to confirm and register the agricultural to non-agricultural personnel and the insurance personnel.

The ministry of labor and social security is responsible for carrying out employment training of the agricultural to non-agricultural personnel for the land expropriation, establishing and perfecting the employment service and social security system, and establishing corresponding measures.

The department of civil affairs is responsible for ensuring the lowest life guarantee of the agricultural to non-agricultural households for the land expropriation that meet the condition.

The bureau of public security is responsible for providing the household register material of the rural residents for the land expropriation, carrying out the audit, approval and statistics of the household register, and transacting the agricultural to non-agricultural household register according to related regulation.

The bureau of agriculture is responsible for guiding and supervising the asset allocation, use and management for the economic organization for the demolished collective and adjusting the land contract and operation right.

The finance office is responsible for the supervision and management of the collection and use the compensation fee for the land expropriation and the transfer and payment of the basic pension insurance and subsidy.

The bureau of audit (supervisory bureau) is responsible for implementing the compensation and settlement polices for the land expropriation, and supervising and checking the payment, use and management of the compensation fee for the land expropriation.

The planning (construction) bureau is responsible for building the settlement houses of the agricultural to non-agricultural personnel for the land expropriation, relocating, constructing and controlling the quality of the oriented sold houses. - 84 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 The Lanzhou – Chongqing Railway Co., Ltd is the joint venture with the investment ratio 7:3 for the Langzhou MOR and Gansu,Sichuan and Chongqing Development and Investment Co., Ltd.

President & Vice President

Gen.l Manager

Vice Gen.Manager, Chief Engineer

Affairs Dep. Eng.Dep.. Safety Dep. Quality Dep. Finance Dep.

Figure 10-1 Organization Structure of Lanzhou – Chongqing Railway Co., Ltd

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LCR Co., Ltd

Consultation Service

Entrustment and Assistance Contract Award Monitoring Unit for Land Expropriation, Demolition Contract and Relocation

Construction Unit Project Supervision Unit

Implemntation Supervision Construction of LCR Line Evaluation of Project Implementatino

Figure 10-2 Supervision Procedure Block Diagram of Land Expropriation, Demolition and Relocation

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10.2. Evaluation on Implementation of Relocation and Execution

Capacity and Coordination Capacity of Management Organization

The local government and the development and reform commission along the Lanzhou – Chongqing Railway Line accumulate abundant experience of the demolition and relocation from the municipal construction, the speedway parallel to the Lanzhou – Chongqing Railway Line, other speedway and project whose effect is lower than other railway lines, the railway lines in construction or the railway lines completed recently. The officers of the provincial (municipal) government are familiar with the ADB’s requirement for the involuntary relocation and settlement policy. These officers clearly understand both the Chinese law and the ADB’s policy reflect one objective that it can ensure the current level of the living condition for the affected residents upon completion of the railway project.

MOR and local government accumulate abundant experience of the land expropriation, demolition and relocation. The experience of other projects can help the land expropriation, demolition and relocation of this project. MOR and the provincial government officers will ensure to provide the local government with enough support, including the training, to implement the land expropriation, demolition and relocation smoothly. For MOR and provincial government accumulate abundant experience of the demolition and relocation, it is necessary to help some counties. Similarly, some village accumulates the experience of the demolition and relocation from the construction of the speedway, while other village may be lack of such experience.

As a general procedure, the provincial government will provide the training for related county and town officers and the village leaders who participate in the demolition and relocation directly.

10.3. Implementation of Construction Measures for

Organizations

The construction of the implementation and management cadre team for the demolition and relocation is the basic construction of the land expropriation, demolition and relocation. Various counties along the railway line improves the construction of the cadre team, enhances the service concept, legal concept and responsibility concept of the cadre continuously, and improves the ability for the land expropriation, demolition and relocation, civil government and service

- 87 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 development according to law, to guarantee the land expropriation, demolition and relocation. The related personnel of the town, village and group can receive the service training. Various levels of the implementation and management cadres for the demolition and relocation possess high quality and powerful working and service capacity, and can insist on the serve for person, practice, honest, skill and excellent behavior.

10.4. Evaluation of Internal Monitoring for Demolition and

Relocation

The land expropriation, demolition and relocation department of the Lanzhou – Chongqing Railway Co., Ltd is responsible for the internal monitoring, to ensure various levels of the demolition and relocation organizations maintain their excellent function during the implementation, and implement it according to the scheme in the Demolition and Relocation Plan, to guarantee various benefits of the affected residents and ensure the civil engineering plays its excellent role in completing the project on schedule.

The land expropriation, demolition and relocation department of the Lanzhou – Chongqing Railway Co., Ltd can report the monitoring information to MOR on the quarterly basis accurately, so that MOR prepares the quarterly report on the project implementation that will be submitted to ADB.

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11. Residual Problem and Suggestion

11.1. Key Problem

In this phase of monitoring investigation, the Institution has carried out monitoring evaluation in strict compliance with the RAP originally proposed to ADB. According to the requirements of this RAP, the monitoring evaluation team has found some unsatisfying issues, which is listed below with the Institution’s counter-measures and recommendations:

.Some problems are still pending for solution, including: dilapidated houses outside of the Red Line needs to be examined and treated; some resettled households whose houses were demolished but land is not acquired now reside long distance from their land; some temporarily acquired land can longer be re-cultivated and needs to be checked by qualified institutions so that it can be treated as permanently acquired land; and project execution cuts off irrigation to some farmlands and at many places it is not possible to add new irrigating facilities, so local governments and villagers require to treat such as dry-land and to make according compensation. The monitoring team acknowledges that most problems have been raised and are pending for solution, and hopes that competent authorities to accelerate handling to avoid impact on farming work. Some cornered land lots that have no access or water supply are created by project execution, and local governments and villagers require the executing parties to acquire them, to which the LCR Project Construction Headquarters reply that it is unnecessary to acquire the land, but appropriate compensation can be made. The monitoring team acknowledges that most problems have been closed, but some are still open, and the team hopes that the competent authorities to accelerate handling to avoid impact on farming work. Large volume of water gathers in many tunnels due to limits of railway speed raising and design, which brings about considerable inconveniences to living and work of residents along the railway. APs complain strongly and competent authorities have already taken measures, but water gathering in some tunnels remains unresolved up to date. It is hoped that competent authorities take expedient efforts to protect the interests of the re-settlers.

.At some places, compensation agreement has been reached with numerous small businesses, such as small workshop and small store, for land acquisition and house demolition, but the land for resettlement can’t be arranged in time. The Institution believes that this will present potential adversities to the resettlement of these affected small businesses and their restoration of operations. It is recommended that more secured resettlement approach be developed for these affected small businesses to help them resume operations.

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In the next phase, the Institution will carry out external monitoring focusing on the following issues:

Continue to closely monitor compensation to and resettlement of affected businesses, shops, schools and urban residents;

Continue to closely monitor construction of concentrated resettlement spots in Chongqing Municipality and Gansu Province, as well as construction of APs’ new housing;

Continue to watch restoration of affected infrastructure;

Continue to track implementation of standards of compensation and resettlement for land acquisition and house demolition at places along LCR, and payment of compensation;

Track restoration of work and living of APs;

Closely watch totals of temporarily acquired land, special facilities, woods and paid compensation;

Closely watch relocation of large stations and impacts on its surroundings.

- 90 – CIECC OVERSEAS CONSULTING CO.,LTD ADB LOAN External Monitoring Report– No.7 12. Annex

Annex 1: Natural Conditions of Households affected by Land Acquisition and Resettlementof LCR Annex 2: The Project Completed Summary Sheet for LCR Annex 3: Paid Compensation for Land Acquisition and House Demolition for LCR Annex 4: The MonthlyReport for Land Acquisition of LCR Annex 5: The MonthlyReport for Resettlement(Rehousing ) of LCR Annex 6: The Project Implementation of LCR

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